Win Streak on Wall Street, Adobe Rides the AI Rally, Cava's Double Delight 6/16/23

SPEAKER_1 (0:00)

Okay, text from the wedding planner. She's talking about a cake pop mural.

Jim Cramer (0:06)

Exciting.

SPEAKER_1 (0:08)

Oh, it's $8,000. I don't know, we're trying to save for a house.

SPEAKER_3 (0:12)

Well, you only get married once or twice.

Jim Cramer (0:15)

The three time stops.

SPEAKER_5 (0:16)

There's a lot of bad money advice out there. For knowledge you can trust, come to GISA Credit Union. Whether it's saving for the wedding or everything that comes after, we can help get you where you want to be.

Find a healthier approach to money at GISA.

SPEAKER_3 (0:31)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street.

David Faber (0:39)

Good Friday morning and welcome to Squawk on the Street. I'm David Faber.

He's a smiling Jim Cramer. We're live from Post 9th of the New York Stock Exchange. Carl has the morning off. Let's give you a look at futures as we get ready to wrap up. It's been a good week, right? If you're long, stocks, or the S&P, or the Nasdaq. And it looks like that may continue, but who knows? That's why you got to stay tuned, because a half hour from now, it could all change. Let's get to our roadmap. It does start with those stocks right there. The S&P is headed for what would be its best week since March. Both it and the Nasdaq coming off are six straight positive sessions. That's right, six straight.

Plus, Adobe's AI boost shares are rallying on better than expected quarterly results. There was a guidance boost. Shantanu Narayan, the company's CEO, joined Jim last night on MAD.

There's a shakeup at Disney, a CFO, a long time CFO, Christine McCarthy, unexpectedly stepping down. She's been in that role for eight years, but an important executive role for this company for a lot longer than that. We'll discuss it. We'll start with the markets ahead, of course. So, this is a long holiday weekend.

Where's your head at? What are you thinking?

Jim Cramer (1:52)

I think that there's a level of capitulation that's going on that's rather remarkable.

Once everybody, of course, capitulates, then the market does go down. But we're seeing these top flight strategists, one by one, recognizing that they've been too bearish. Most of them rely on the yield curve. And as long as we had an inverted yield curve, these people felt that we had to be going down. And that turned out to be a tell. And now they're eating what I call crow.

And you know what kind of crow?

David Faber (2:25)

No, what kind?

We're already on that? Didn't take you long to get there.

Jim Cramer (2:30)

No, I just had to do it because yesterday, as I was being belittled, I was watching a double of a deal that has now opened the floodgates.

David Faber (2:38)

Are you insinuating that I was amongst those who was belittled?

I just want to make sure. That said, Jim, to be fair, you were very excited and enthusiastic about Cava, and it more than doubled. That said, nobody could really buy it yesterday, other than it's over $41 a share. So the question really does become, do you still buy it today at $43.78 or wherever?

Jim Cramer (3:03)

History says no.

But what people have to understand is that a very big account, say a Fidelity, they'll get a lot of stock on the actual order and then in the actual deal. The deal price.

And then they'll average up. So they say, get $500,000 on the deal, and then they buy $500,000 when it opens. And their basis is, say, I don't know, we call it 30 and change. So that's who does a lot of the buying. And now you're coming on top of that. And those people do not need to buy anymore. So historically today can be an up day, but it has not been, as we looked at all the restaurants, it's not been a good day.

David Faber (3:38)

You're okay with buying that stock at $45 based on the fundamentals, based on the future revenue growth and earnings of the company?

Jim Cramer (3:44)

No, it doesn't really make a lot of money.

David Faber (3:49)

What did he say? We have line of sight.

But he wouldn't tell me how far out that's sighting.

Jim Cramer (3:54)

The restaurant margin is as good as Chipotle. Remember, they don't want to be compared to Sweet Queen. They want to be compared to Chipotle.

David Faber (4:00)

Of course they do, for obvious reasons.

Jim Cramer (4:01)

Sweet Queen being the bust of a lifetime.