What's At Stake for the Markets, Palantir Soars on AI Demand 11/05/24

Jim Cramer (0:00)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:13)

It is election day in America. Millions lining up across the country to choose the 47th president of the United States. 80 million have already voted. Much at stake, polls suggesting the race remains extremely close. Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Future's pretty steady, coming off three out of four down days for the S&P. Our roadmap's gonna begin, of course, with the election waiting game. Voting's underway. Markets remain steady ahead of the open.

David Faber (0:44)

Plus the AI surge, Palantir shares. They're rallying sharply after delivering a rosy outlook. His CEO saying the company sees unrelenting demand.

Jim Cramer (0:55)

Oh, he's so much. He's too much.

David Faber (0:57)

And Boeing Machinists are set to return to work this after ending a bitter seven-week strike. They approved a new labor contract. The pay raise over four years, 38%.

Carl Quintanilla (1:07)

Let's begin with election day in the markets. Nice little stat to start the day, Jim. Stocks have closed higher. Last five presidential election days.

Jim Cramer (1:14)

That was a great stat. I was trying to figure out, is it dispositive, given the fact that we have, I would say, an unusual election, unusual antipathy, David? Not a congratulations among them, not a how are you doing. Just basically one candidate attacking one another. And I think that the story is.

David Faber (1:37)

Well, one not talking about the other directly, and then the other obviously. I mean, for example, Vice President nominee Vance yesterday called the, you see him there, the presidential nominee trash, right?

Jim Cramer (1:56)

Yes.

Carl Quintanilla (1:56)

And then Walls, on the flip side, didn't mention Trump at all in his speech last night.

Jim Cramer (2:00)

Let me just say right from the beginning, because I know that there's Puerto Rico has been allusions to what that is. David, this is waste management is what you buy here.

David Faber (2:09)

Got it.

Jim Cramer (2:09)

It had a fantastic quarter. I mean, blowout quarter. I mean, I was surprised. Stock went up big. Fish did a good job. A lot of people short it and they've been crushed. Waste management. There. That's about as political as I want to get.

David Faber (2:23)

You want to be long garbage. Yeah.

Jim Cramer (2:24)

Well, waste management handles more garbage than any other company in the world.

David Faber (2:27)

Yes, they do. It's a lot of recycling as well.

Carl Quintanilla (2:28)

It's actually a big macro economic indicator.

Jim Cramer (2:30)

Yes, it is and it's actually much more related to housing because that's where the big waste and trash is. So, I don't know. I think that given that waste has been a good stock, you could say there's this positive.

David Faber (2:45)

There you go.

Jim Cramer (2:45)

Right. Whoever invokes trash the most and says someone's trash, we go with waste. Now, I will say that if my friend John Ellis, to my regard as being the best, said, listen, if the election is about the referendum on Trump, then Harris wins, referendum on Harris, then Trump wins. I like that because it presents us as being nonpartisan, which I like. And basically, Carl, I think it's whoever is such a negative campaign, that whichever negativity sticks. Having been in the Philadelphia area, I was longing for an ad for, say, McDonald's, but it was blacked out and they just took every commercial. Every commercial. Football was so painful.

Carl Quintanilla (3:25)

Didn't Lachlan Murdoch even apologize to viewers in Pennsylvania who've had to endure so much political advertising during sports?

Jim Cramer (3:32)

You had to keep switching. At one point, I switched to the Giants' Commanders' Game.

David Faber (3:40)

It wasn't a bad game.

Jim Cramer (3:42)

No. The point is that one team kind of had it. There's garbage time, waste management.

Carl Quintanilla (3:47)

There you are again.

Jim Cramer (3:49)

That's the theme. That's the theme of our morning show. It's garbage.

Carl Quintanilla (3:51)

Bunch of desk notes today, Jim. B of A is a good example where they argue that the consensus is you sell the Donald Trump rip and you buy the Harris dip.

Jim Cramer (4:02)

Well, I also like the B of A piece about Apple, which I thought crystallized my thinking, which is that you could buy Apple because the Justice Department is going to have new people who like Apple, but you have to sell Apple because you have very high 60 percent tariffs on China. So I find that you can make cases for anything. What worries me is if people actually take action on this stuff, what they may not realize is there's something else that's at play, earnings. Now, it is true that earnings will be cut if Trump's elected for Apple, because the 60 percent tariffs, 30 cents, they make everything there. They have to pivot to India, Malaysia, Vietnam. It's very hard to pivot. Although they do make a lot of stuff in India now.