Yields Rise on CPI, UAW Latest Strike, Consumer Names Report 10/12/23

SPEAKER_1 (0:00)

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Carl Quintanilla (0:31)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at post night of the New York Stock Exchange. David Faber has the morning off. Pre-market is holding on to gains despite September CPI running a touch hot, up 4 tenths on headline. Core was in line, yields are higher, but that 10-year managing to stay below 4.6 for now, as we turn our attention to earnings next. Our roadmap begins with that latest inflation print, hotter than expected for the month. What could it mean for Fed rate policy? The UAW expanding its labor strike against Ford targeting one of the company's largest plants, we'll get the latest and the IEA saying the Israel Hamas War poses a risk to the oil market saying they will remain on tenterhooks as that crisis unfolds.

Let's get to the CPI print though. Jim, the general take is that ex-shelter, which was more than half the gains, means the Fed may look past this one.

Jim Cramer (1:27)

Well, look, they're struggling on shelter very much because it's rent. Remember, they took the housing out in the early 80s. And there's just not enough place to build. We had some numbers this morning I was watching on wax, which was Frank Hollinship.

It's 1% down in New York. But that's not going to cut it. I mean, J-PAL wants to see housing rolled back a little bit more. It's up 40%.

Rental, you need more apartments built. I think that he wants to see more good numbers in a row. And I can't say that this is a good number.

Carl Quintanilla (2:07)

People were hoping for a one-tenth.

And you do have one-tenth if you take core ex-shelter, again. And people are looking at some of the new rent data and that will eventually get folded into these numbers.

Jim Cramer (2:18)

I think, and energy. But I just think that what happens is, is that you hope that other things make it down and make up for it. And you don't. I mean, look, rents, it is true that there was an amazing number of apartments that were starting to be built after COVID. And they should come in line, and then you're going to have it. But why jump the gun? Why look and say, you know what, it's going to get better?

It has to be better. Because otherwise, what's going to happen is there's a chance that he that he lowers or does nothing, and then it goes bad again, and he looks weak.

So I think he's going to look at these numbers and decide, I don't know if this is continuity. I think that it should have gone down each month, and instead it stayed roughly the same. That's just not good enough.

Carl Quintanilla (3:06)

Well, year on year core did go down. We got to 4-1, prior 4-3, Santelli was pointing out, haven't seen a sub-4 number since May. Right. Of 21

Jim Cramer (3:16)

You know, look, I think there's a big issue here. And the big issue is that he, this is my own personal view of it, knowing his ethos, look, the average worker can't handle that, plus work, can't handle that. I mean, that means you go to Olive Garden, you go to Fridays, and the numbers are too high.

It's just true. And you go, and you have a drink, and the number is too high. So you stay home, and you go to the supermarket, and the numbers are too high. Nobody's cutting, and nobody's cutting price other than if they're trying to get into Costco. And so Costco is the great equalizer, maybe Amazon, but you know, you've got Amazon trying to do the right thing, but then you have the FTC coming down on them. So I mean, I just, I want to know who other than Costco, maybe Walmart on their private label, is at the vanguard of trying to help the working person. But it doesn't mean anything to the rich. The pal's not focused on the rich.

He's focused on the people make 45,000, 50,000. This is not good number.

Carl Quintanilla (4:20)

Well, that's kind of what Delta got to today, where unit passenger revenue is down one and a half because airfares have come in.