With the Wells Fargo Active Cash Credit Card, you can earn unlimited 2% cash rewards on purchases you want and purchases you need. That means you earn 2% cash rewards on what you want, like season tickets to watch your favorite team, and 2% cash rewards on what you need, like paying for parking. That's the beauty of the Active Cash Credit Card. It's ready when you are with unlimited 2% cash rewards. The Wells Fargo Active Cash Credit Card, that's real life ready. Terms apply. Learn more at wellsfargo.com/activecash. What's on the horizon for financial markets? At PIGIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialized across asset classes but united in collaboration. Our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PIGIM, a leading global asset manager. It's Jim Kramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action. Good Friday morning. Welcome to Squawk on the Street. I'm Karl Keaton here with Jim Kramer at Post Night of the New York Stock Exchange. David Faber has the morning off. Big day. August Jobs comes in, 142k as slightly below estimates with some negative revisions. Unemployment pretty steady at 4.2, yields drop to some fresh one-year lows. Our roadmap begins with jobs, slowdown fears, and the Fed. Job growth rebounding slightly last month, keeping interest rates likely untapped this month. Chips remain in focus, broad-com under pressure as guidance, somewhat disappoints, and then politics watch. Trump vowing a 15 percent corporate tax rate for some companies. Well, dozens of corporate leaders line up behind the vice president. Let's begin though with market reaction to this morning's jobs number. Jim, the take-in, at least for now, has doesn't neatly answered the 2550 debate. Well, I think that no, it doesn't neatly do it. I mean, it certainly makes it a certainty that there's going to be one or the other. I would say that this morning, at 3.30, the futures were down renaissance. One and a quarter percent on the Nasdaq. Now, we left here. It wasn't down that much. And we can talk about for all come later. But the idea seemed to be, it was almost as if we might report a number where there would be no cut. And that was completely wrong. There seems to be a series of tremendously bad bets being made by people who can't sit on their hands. Look, this is the kind of revisions to say. We've got to do something. Powell might have 50 if he thinks. He's got either one. But boy, I'll tell you, if you care about interest rates like I do, you're going to have a good market. And we're not supposed to. It's September. And I understand this week is down more than 2%. It may not be the solution instantly. We do feel that the semis are overwhelmed by weakness in the economy. I hate that. That's a bad theory. We've got to dispel that this very morning. But the picture of employment right now doesn't make you think that the soft landing is teetering in any way. No, I do think that it's negative that you had only 25. You had a loss of 25,000 manufacturing jobs. I had Caterpillar on last night. They had nothing but good things to say. I do think that this is, again, part and parcel. You don't get a rate cut. Let's just start seeing these numbers. So we have to start. Look, I'm not trying to enjoy negative numbers about people marketing jobs. We did get 40 cents per hour year over year increase. Somehow that's actually okay now. We actually want the people who have jobs to make a little more money. Well, I mean, you're on your wage, 38 versus CPI 29. That's a good tailwind for a consumer. It sure is. I mean, I think that there's been a lot of people talking about the choppy nature of the consumer. I say it's the choppy nature of the business. Because there's a lot of blaming on the consumer and the weakness in the economy. From companies that really should recognize or are low to say, you know what we're getting? We're really getting beat up by Costco and Walmart. But we can cut our prices. They can't. The only outfit that I had, Spouse Mark is on the other day. And they are determined to get produce price down. And they've done that. But you have to have something which makes the consumer feel a little bit better. But that kind of number that you just mentioned, that says, you know what? You can go to Sweet Green, which we saw this morning with a $15 bowl for dinner. I do think that the numbers are fine. We want the Fed to cut with, you know, look at the win for AI. And the so-called bursting the bubble. Thank you, Michael Semblis, for bursting the bubble already this week. Good point. JP Morgan's strategist. I think we'll be fine. But I think there's this kind of idea that, wow, we really were caught flat-footed. AI turned out to be not any good. And what we should have been looking at is the price of toothpaste. I mean, no, we got to stop making it judgment. AI is fine. It's rocky. It's bumpy. Look, just go where you've been right this today. He's got a very good piece of meleus where he just points like he talks about, look, it's not linear. There's going to be a lot of spending. It's not linear. I was on that hot tan call. We feel strongly the investment club. This is like August of last year where you just had a huge drop off. And then it was, well, late August early September. It was one of the great buying opportunities of all time. That stock is up more than 50% this year. People are acting as if it is a company that hasn't made shareholders any money. The opposite. Hot tan, the CEO, put up good numbers, cell phone bottoming, server bottoming, AI fine, lumpiness related, perhaps to Google, VMware on fire. And VMware's been the biggest, that's been the Achilles heel of the company. I know that Broadcom is, if David were here, he'd be saying, you know what, geez, Broadcom is so big. So it has the power to create a bit of a downer mentality. But did you notice that Nvidia went from being down 80 cents to being up after the employment number? We're way too sensitive. Those do not correlate. Jensen Wong, if he saw what we're doing in the stock market correlating interest rates with what they're up to, he would say, what do they have anything to do with each other? And the interest is, the answer is very interesting for people to construct these ideas in their head. Well, people have tried to argue that Nvidia is a dynamic that leads to economic activity because of the size, because of the build out, because of the CapEx. Look, I think that's a great theory because you look at the data center. There's so many companies involved with data center. That is a primary driver of caterpillars at data center. We know that Jonathan Gray, though, from Blackstone, they bought another data center. They wouldn't be doing that unless they felt data centers were a secular story. Right now, data centers became cyclical. Out of nowhere, the biggest theory of what's going on in the economy became cyclical, and that's going to be verified by the manufacturing jobs not going higher. I thought they would go higher. That was not good. We did get some decent prints on construction jobs. Yes, and that could be related. I just never want to see manufacturing down because we've got this whole reassuring concept. And what happened to that? And now people are putting in politics and just saying, you know what? We're looking at what Trump's policies did, and they led not to new plans, but they led to more buybacks. I think that's wrong. I think that there is a wrap which just says that China tariffs did hurt our country. Again, I think infinitesimal. It's just not what you should go on. I am watching the politics like a hawk, though, because I know that there's a debate next weekend. I'm sure that former President Trump is going to be able to say, look, look what's happening. The economy is slowing, and it's inflationary. Because I think you can pay for it, but you can use these numbers to justify pretty much anything. Right. BFA does have a great chart today looking at the entire wage spectrum since 2019 has outpaced inflation, and the lowest cohort did the best. So the argument that you're somehow behind on pricing, I don't know, we'll see how well they can communicate that message. How could no one should try to distance themselves from those numbers? If I were, if I were Vice President Harris, I'd say, look, the market did better under Biden than it did under Trump. The economy hummed, and not only that, but everybody gained. And it's not just a lower end or a higher end cohort, but no one seems to be running on what Biden did. Yeah, that's a lot of that has been made irrelevant to some degree. Because of the price of a big big weapon. Like, you know, I honestly got it. If Harris could say, you know what, we're going to get that big weapon down to five bucks. She says that on, at the debate, I think people vote for it. The McMuffin's too high. That's the problem with the economy. It's the McMuffin. Jim mentioned Zumpilby from Caterpillar last night on Mad Money. And you did have a really good discussion on data center. Take a listen. We're seeing data center demand globally. And so this is not something that, again, is just in one geographic area. And it's not just with one customer as well. So we're seeing a lot of demand from, of course, the big hyperscalers. But also smaller customer customers. And companies, frankly, that most US investors aren't aware of. That investors are not aware of. Not aware of. We went through this period where what matter was China. Then we went through this period by matter with oil and gas. Then what matter was mining. And then what matter was infrastructure. Now it's data center. Put that whole mosaic together. And you've got a juggernaut that is Caterpillar. And not even including regulation. An incredible moment in that conversation I had with Jim. Was that a Democrat turned out to be a boon for Caterpillar. Because what's happened is, is that they have all these regulations that requires you to do rebuilding and solar. And that's another thing that they're great at. They're also great at having engines for when a data center goes down. You can't really have those go down. Comments in Caterpillar make the backup engines. I thought that that conversation was blow away. Because the idea that data centers is their driver and worldwide driver. When Europe weak, Africa not strong. Asia is just okay. Brazil was the only country that was cited as being really, really strong last night. Brazil. People are starting to talk about Brazil doing well. Which is odd with that. It doesn't drive with that government. As for China, Jim, I don't know if you saw the wire story today about a former PBOC official saying probably in the most stark terms how much China needs to battle deflation. Look, deflation as we know from the 20s in Germany leads to revolution. Deflation is a, is a curse. And I think people in our country only hear about inflation. But deflation means don't buy, don't buy, don't buy. Let it come down, let it come down, let it come down. It's the end of commerce deflation. And I think that there's a perception that you have to have deflation to get things right. Now, we have seen some countries do that to beat hyperinflation, chilly. During Pinochet's regime, not well, not well liked. But I think that we have to just state that China is, again, not worthy of investment. Boy, there's a battle going right now in China about MSCI, Henry Fernandez, who's a top executive, say you're fighting to try to figure out what should be the percentage in these big indices from China. It should be much lower, because we see when you do a block trade or a PDD, talk about this whole 10 machine, you know what they are? They're Dollar Tree and Dollar General. That's what they are for China. And that is not the, it can't be the juggernaut of the economy. And if you put these tariffs on, whoa, bye bye. I mean, like, NIOs, the only stock I see that has had anything positive. And I don't really want to buy NIOs. So would the application of tariffs be, like, putting your heel boot, the heel of your boot on the throat? Oh, I love that analogy. I hadn't thought about that. That's a better analogy than what I was. Totally. Yeah. Look, I think that China, we none of us want to desperate China. Okay. And the FT specializes in how much business and video is doing in China. And the answer is enough, enough. China is not the juggernaut of anything. I mean, I think that India, we're trying to figure out why that kind is not growing faster. I look at the different countries that make up the prestige of Apple, which we've got to know it from coming out. And they're talking, look, it's about the Philippines. It's about Indonesia. It's about these kinds. And then you Google these countries, because when you went to school, they had much lower populations. But no matter who went to school, and what years, and now we're starting to realize, no, look, Apple is not related nearly as much as to China as we thought. China is just a disaster. And I keep saying that. No one wants to believe it. It's a disaster. The spread between certainly our economy and theirs has gotten so wide. Well, they're still like giving money to China to try to own China. And they're like, come on, try to own your own country. Jim mentions a big week for policy, economic policy this week, as the former president pledged to cut taxes for businesses if he wins a second term. Yesterday at the Economic Club of New York, the Republican nominee outlined plans to cut the corporate rate to 15 from 21, adding that it would be, quote, solely for companies that make their product in America. Also announced that Elon Musk would have a role in his administration. Take a listen. That the suggestion of Elon Musk, who has given me his complete and total endorsement, that's nice, smart guy. He knows what he's doing. He knows what he's doing. Very, very much appreciated. I will create a government efficiency commission test with conducting a complete financial and performance audit of the entire federal government and making recommendations for drastic reforms. We need to do it. Can't go on the way we are now. And Elon, because he's not very busy, has agreed to hit that task force. Be interesting. If he has the time, he'll be a good one to do it, but he's agreed to do it. Talked about the creation of a sovereign wealth fund, got hammered on this convoluted answer regarding child care solutions. Right. Some people say, what a socialist answer. I don't know. I mean, what I do know is that Elon Musk stands for more than just cars. People should recognize that Elon Musk stands for robots. Thank you to Adam Jones for getting put in front of us. And Elon Musk stands for AI Buildout. Now it's funny, if we go back to the Michael Semblis piece this week that I've referenced, he actually is like very positive about Nvidia. Very positive about the use of their of AI. It's just saying maybe the hyperscalers just spending too much. That's why it's so interesting what Elon's buying a gigantic amount. Because he recognizes, you mentioned this yesterday, that he has no choice. Obviously he'd like to make them. But he is really the CEO of much more, he's CEO of Starlink. Think about what he's creating. And the funniest thing about the former president is like, he's not too busy. He's basically pretty busy. But wow, he's the panoply of the economy. And I think space matters a lot. And I do think the data center and I do think that AI and I do think that robots. Well, the pushback on Musk, I don't need to tell you, will come from the amplification of misinformation. AI generated images of Harris without a label. Amplifying conversations that imply Churchill was the true villain of World War II. Yeah. That's what makes the picture muddy. Yeah, the villain, I mean, always try to figure out that status. It's like he was beholden. He was a mendicant when it came to Roosevelt in 1940-41. I mean, yeah, he did that, got the U.S. to understand which side, when obviously the U.S. was not pro. There were people in our government that weren't pro. Nah. Well, there were American Fursters, so does it. And that term has been heard from again. American Fursters then trying to figure out whether to be on Churchill's side or not, Churchill being on the correct side. Look, you're so right. I mean, I'm trying so hard to figure out what people are thinking because it's so not directly correlating with what the leaders are saying. There's just a lot of misinformation in there. And then on the Harris side, and this will all get hopefully talked about it, the debate, capital gains earned income tax credit, child tax credit. Can she get 25 million new businesses in four years? Well, I mean, everybody wants everything right now. You've got these are things that would bust the budget. I love the fact, by the way, rates keep going down. Remember when the story was that they were going to have to thank you, Josh Frost, who creates the schedule of when the federal government raises money? But look, we've got a lot of false narratives out there. I think that if you can add more childcare, the same way that Obama managed to add health care. It wasn't the disaster that people thought it was going to be for the economy. I don't know. I do think that everybody's a little too bullish. My favorite line from last night was Ned Davis' research, Jim. No bear market, though. Both sides are talking about increased deficit spending with no way to mitigate that spending, which could be positive for risk assets no matter what. Well, let's go back to what Larry Fink said when he sat right there. And this is BlackRock, the biggest aggregator of money. We're going to grow our way out of it. Now, you could have done a subtext or saying we better grow our way out of it. But that's how they're going to do it. And look, we do have great growth. We go back to Umpelby from categories. He's looking at the panoply of the whole world. It's the US. We've got the growth. And it's not just from reshoring. It's not just from the data centers. It's not just from minerals. Not just from construction. But we will have a month like this, which gives us a window to why rates have to come down, even though it helps both candidates. There is a reason the US is almost two-thirds of global market capital. Oh my. And meanwhile, China's receding, but we still keep thinking. We have such an inferiority complex toward China. It's really frightening. I mean, China every day they post it, boy, they're killing us. We're the only countries just, boy, they're killing us. I mean, come on. Remember the Belt and Road Initiative? I mean, what is that? It turns out to be no road. Right. Take a look at the pre-market here. A lot to digest as the street process is this jobs number. If you missed it, 142, just south of the 161 estimate, but those revisions down the combined 86k over two months, that is the crux of the conversation today. We're back in a minute. 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Visit chevron.com slash anchor. My dad works in B2B marketing. He came by my school for career day and said he was a big row as man. Then he told everyone how much he loved calculating his return on ad spend. My friends still laughing at me to this day. Not everyone gets B2B. But with LinkedIn, you'll be able to reach people who do. Get $100 credit on your next ad campaign. Go to linkedin.com/results to claim your credit. That's linkedin.com/results. Terms and conditions apply. LinkedIn, the place to be, to be. Get Kramer's mad, Dash, watching some numbers. Not all the numbers are jobs related today. Yeah, we'll call. There's some ports in this storm and one of them is Costco. They reported last night. These are their monthly numbers. And they were very strong. U.S. core August comp growth of 7.1 compared to what was supposed to be 6.7. And it's broad base. I love the fact that they continue to try to put the prices down for fresh food. That's why they have high single digits. The consumers' responding, even though we have the membership fee increase. This was a better than expected number. A lot of people raising price target. If we're going to get a turn in the market, go for this one. I know the turn is early given the fact that all the turmoil. But this one's delivered the best, most up to date numbers right now. So does it do better with the backdrop of a declining consumer or a rebounding consumer? I think it does better in declining because people are recognizing we've got to go where they've rolled back prices. This company has rolled back prices endlessly by punishing the suppliers and punishing by this thing. You lower your price, we're going to go against you with our excellent premium Kirkland signature product, which we all love. Anybody goes to Costco. Costco and Walmart have really changed the equation here. And the reason why I again reiterate Dollar Tree and Dollar General, they ought to just say, you know what, we've got to come in with a price point that's lower than one of these two. Good luck though. This is a volume story, not a price story. They want people in the stores and buying and they deliver. And do you have a preference between this and Walmart? Whoa, yes, Costco. Really? Yeah, only because I find that Costco's prices are so unbeatable and it's a little more fun. Even though everybody knows I love my Walmart. Hey, you've made that point before. We'll take a break here, get the opening bell in about five minutes. Don't forget, you can catch us anytime anywhere. Just listen to and follow the Squawk on the street opening bell podcast. With the Wells Fargo Active Cash Credit Card, you can earn unlimited 2% cash rewards on purchases you want and purchases you need. That means you earn 2% cash rewards on what you want, like season tickets to watch your favorite team, and 2% cash rewards on what you need, like paying for parking. That's the beauty of the Active Cash Credit Card. It's ready when you are, with unlimited 2% cash rewards. The Wells Fargo Active Cash Credit Card, that's real life ready. Terms apply. Learn more at wellsfargo.com/activecash. My dad works in B2B marketing. He came by my school for career day and said he was a big row as man. Then he told everyone how much he loved calculating his return on ad spend. My friends still laugh at me to this day. Not everyone gets B2B, but with LinkedIn, you'll be able to reach people who do. Get $100 credit on your next ad campaign. Go to linkedin.com/results to claim your credit. That's linkedin.com/results. Terms and conditions apply. Linkedin, the place to be, to be. The accumulated evidence has increased my confidence. The inflation is moving sustainably toward 2%. The current restrictive stance of monetary policy has been effective in restoring balance to the economy and in bringing inflation down. With the economy now in equipoise and inflation on a path to 2%, it is now appropriate to dial down the degree of restrictiveness in the stance of policy by reducing the target range for the federal funds rate. That's the Fed's John Williams speaking a moment ago with the Council on Foreign Relations. This is our last day of Fed's speak, Jim, before the blackout. Yes, and Williams is a heavy weight. We've all come to recognize that he doesn't swing with the breeze. He's rigorous, and that was a fantastic little bite that shouldn't, but more in people's minds than what's going on with AI. We will see how that all plays out into crisis today, as we get the opening bell in a few seconds. Interesting day, given the kickoff last night on Raven's Chiefs, and the activity continues here this morning at the big build. It is the New York Giants celebrating the 100th season as a professional football franchise. I always thought I'd look at the value of franchises, privately undervalued, who doesn't want to own that franchise. A guy like Dallas, I went to see Jerry's World. I like New York. There's a guy, a hero, three of the honors. I think Tyree's here, perhaps. Do you get to helm it out? No Eagles are here because they're in Brazil, busy of gaming. Last night being, do you remember why football is the most excited heel on earth? A toe? A toe can make the difference. And at the Nasdaq, by the way, are cutest by a fair cutest, focused on immunodermatology. Did you see the Eagles hype video that Adam Schatzer. I've got it. I tweeted it. Yo! Yo! The Eagles have become much more of, I'm never going to say that American teams, so much American teams. But remember, we have the Eagles jerseys. That's a great way to look at how things are going. They're huge mail. And I think a lot of people talk about Howie. I mean, I remember why, he's our general manager, that he's always making moves. He may, I don't know how many moves during the draft, but you couldn't keep track of them. We can't wait for that tonight. As the entire world really gets a look at American football. Yes, and they win early. The Eagles, I'm not sure exactly what the Packers schedule was. But, you know, Howie Rosman tells me it's fabulous. By the way, we heard from Roger Goodell, Commissioner, this morning on Squawk Box, talked about betting and sort of player discipline and going global as well. Take a listen. We have 38 million fans here already. We hope this will really ignite this market and really become passionate football fans. And we're obviously continuing our games in Europe. We're continuing games in the UK as we're going to Spain next year. We'll be in Germany this year. We'll be hopefully back to Mexico next year. So, we really believe playing the games is a big part of making our game global. While we're in the neighborhood, Jim, got some news on Paramount, some numbers on Sherry Redstone Severance, in addition to the payout. WBD is going to release Beetlejuice this weekend on almost a record number of screens. There, we have an entertainment story that's bubbling up. The people don't seem to care about it. If you look at the stocks, we equate with the entertainment. There's still the worst stocks in the market. They trade like coal or fracking sand. Something has to give in that group. Now, obviously, if President Trump is elected versus Vice President Harris, I think there's a belief that antitrust will be the other way if they want to consolidate. But they should remember that Foreign President Trump was deeply related, deeply involved in the CNN in a negative way. I want to embrace these stocks. And obviously, we work for Comcast. But I recognize this stock has been unchanged in the third 10 years. And I'm not going to look. I worked for it. I'm proud of it from Philadelphia. But I also know it's unchanged. That is, okay, factor in the dividend. The distribution models in transition. That's what the whole business is all about right now. It is. And you look at the numbers. I find that Moffatt needs to put out some numbers periodically. Right pre-regular, I'm sorry, about who's gaining subs. And let's just say you got to gain subs. Got to gain subs. While we're in the neighborhood of M&A, Jim, Cleveland lifts. Gun solvers came on closing bell yesterday. Talked about this ongoing drama. Look, I've been saying that he gets it. But he has to be able to sell. They have to find buyers right now for the overlap. Because the auto industry, which should hate that deal, because they control pricing for auto steel. But it is a union deal. I think people underestimate this man gun solvers repeatedly. That was great appearance. Graduates to those guys. I would say that the Nippon steel can was a total fiasco. Just handle up and down the Roman. It's an important story from a national security standpoint. Certainly an economic standpoint industry. And politics, given the focus on Pennsylvania. This is what Gonzalez said yesterday. I will not deploy the details of the package in this interview. But we are good to go. Good for the money. And more important than anything. We are going to be working to preserve jobs to create new opportunities. Like we have just done in West Virginia with transformers. We will continue to grow manufacturing in North America. We will continue to reinforce middle class for our benefit. For the benefit of the United States. Not for the benefit of Japan. Wow. Look, remember we have one bit of agreement between the two candidates. Which is that this must not go to Japan. The Japanese commitment was to put more money in. Not to just keep it so there wouldn't be a lot of closures. But I look at just, it was tone deaf. That they didn't realize that this was what was going to happen. And the more I talked about it, the more people were giving me pushback. Saying listen, I always love it. When they say you don't know what you're talking about. Take special notice and really don't believe them at all. This was just dead on arrival. Because that was the wrong zeitgeist for the moment. And by the way, we never even heard from Vance. His whole book is dedicated to the idea that Japanese acquisitions ruin small towns in America. Right. We'll keep an eye on that. Jim, interesting open given that tech is the only sector not up at the moment. Right. And I think that semiconductors have been the bellwether. What you don't want to own for the moment. I think that they should be what you want to buy into weakness. Because they are in secular growth. But this is a long month. And it just seems like that this is the month when they want to punish the semis. Look, again, I'm going to give you, you get a stock like 3M. All right. 3M was an underweight recommendation sell. I mean, it's pretty serious when you have 3M as a sell by Morgan Stanley and the stocks. They went on the industrials. Even though manufacturing net was a weak point for employment, I like a lot of stocks here. I don't think you don't have to just own Clorox for heaven's sake. Everyone loves Clorox. Some of the trades make immediate sense. Pulte, Horton, Lenoir, all among the winners listed. Thank you, Paul. Because what's happening here is that if Toe Brothers sees rates going lower, then Doug Yearly, who, my regard as being an exceptional CEO, he'll build more homes. They have the ability more to build more homes. They haven't won a tip things by you. You bring up that marginal house and people who are in home and suddenly say, I've got to sell homes. But I do think that this is such a breath of fresh air for what is a too high mortgage rate, a too high HELOC, home equity rate. And it just says those who downgraded. I talked about the other day. So you take it, you know, it's a funeral. Send me into your food. You downgrade the homeowners into a rate cut scenario. Come on. And the HELOC extends to builders. First source carrier, Jim, eating on an upgrade today. Oh, look. My travel trust owns Eaton. It's been viewed as just a simply sink on the data center. It's a mega trade. There's many different cycles that it's going in favor of. Lenoir, by the way, great spokesperson for the industry. Up 2% Stuart Miller would be able to tell you that if rates come down, look out. There's a lot. Again, it's broadening out. It's almost a look. It's a breath of fresh air. And by the way, everybody who bought futures puts or you're selling futures frantically, you got to tell me what you mean, okay? Because I think that you should redeploy to daily fantasy on draft Kings on Sunday. Because maybe there you have rigor, okay? Maybe there you know how to pick up a $5,000 receiver. Because you should get out of this business. Because you don't know what you're doing. You get up at three o'clock, which is before me and God bless you. But then you make the wrong move. I mean, come on, go back to sleep. You're crusade against the pajama traders. Oh my God. To get some feet, get the Dr. Denton's feet pajamas and go back to bed. Stay up, watch the end of that game. Twelve o'clock, watch the replay and the replay. And then go back to sleep and don't wake up until noon. Intel, Intel is the Dow laggard this morning. Jim, a bunch of different news sources. One's on Reuters talking about Qualcomm, looking at their design business as a potential acquisition. Yeah, they float that. There's other pieces about the mobile eye steak. And others arguing that Intel's woes are Qualcomm's advantage. I can make that case. I could also, but I would rather say that their arms advantage. Qualcomm is a very opportunistic company. But ARM, Renee Haas is ready. He's ready right now to make some changes and take one Intel. Hey, boy, he can take one Qualcomm for him and say they're suing each other. There is this mobile. I was at $38.07 last year at this day, $38. Pat Gelsinger, he's still talking a big game. May I suggest that he read the Financial Times article today about defections at Intel. Stuart Pan, who was the head of Foundry Business, named the 23 left this year. There are many people who say enough already, Pat. You really come out and say that Alterra might be both. Some of the rumors, not from Pat, were that Alterra is going to be bought by Marveltek. That was last week's rumored as your, why would Marveltek want to own something that's been reduced to almost nothing under Gelsinger range? Now they're telling us that Qualcomm is going to business in that. And the mobile eye, what price can they really sell it at? I don't know. I remain steadfastly negative about the stock of Intel. The one other mover we got, at least on the research front, is SMCI. As JP Morgan goes to neutral, Jim, they were at 950. They go to 500. Look, that was a, I love their research. I'm not going to be too critical. But the fact is, as they start out by saying, we're not getting, we're not downgrading this because of the problems with the county. Right. The Hindenburg problem, so to speak. And then I think they spend the rest of the piece talking about the Hindenburg stock. I mean, I, honestly, guys, if you're going to say that you don't care about it, don't bring it up again. Just talk about the data center and how supermarkets are getting still, which is against HPE and the margin pressure, all fine. Also, it could be related to Blackwell. But don't bring up the accounting and then say, listen, you know, it's not really important, but we should focus on it. And I, look, I do agree with the downgrade though. This, something very long, it's super micro. They, whenever you have accounting issues, you got to take the breath away, accept that because they did put out a release saying that there are issues. You can't, you can't self-regulate. Once you say there's issues, there's a belief at home. If you say there's issues and then you come back and say they're not issues, the only thing you can come back and say is the cash position unaffected. The SEC buys into that. You say, well, listen, it shouldn't be material. The cash position is unaffected. But once you flag then what happens is the SEC says, all right, well, we got to go in. And then it's just a nightmare. And I don't know why people think it's not a nightmare. I've been in on one of these, where there was a very small discrepancy that really had nothing to do with any part of the company that I was involved in, speaking of the street.com. The SEC then descends, and you know, you surface a year later. Yeah, the other one that reminds me of that is, it's a small market cap gym. It would be big lots delaying earnings to the 12. Well, yeah, you got to have them the way I'm well. Big lots is, big lots is very, very weak, but they do have a lot of scores. So look out. Yeah, the news about Buffett continuing to unwind some of these. So thank you, America. The biggest winner when it comes to the change in the U-curve. Go sell something else. So you think it's a misguided trip? I mean, it's a huge win. And anytime someone sells the news and still have a lot left, congratulations. It's just that this is the bank that I think is you want to buy, just because it's able to do this with all that selling. And Berkshire to trade, someone called me yesterday and says, what should I do with Berkshire? And I said, well, own it. Wait, wait, wait, you're like, only don't trade it. Own it. Bank of America, you've got a great basis. So I understand the trim. It's just that it's ironic that Bank of America's got the balance sheet that makes you most want to own it right now of all the majors. Right. Berkshire has been on a nice win last few sessions. Elsewhere in financials, Jim Hood gets a bit of an upgrade over at Barclays. How about that piece? This is about how Hood is mature. They know how to grow in Coinbase too. My chap was our son's Morgan Stanley. And when are they going to take advantage of E-Trade? Now, they may say they have. Well, they better talk about it. Because right now when you read about what Robin Hood's doing, they are taking share. They've captured a lot of the option buying. You could argue that they also capture a lot of Bitcoin. They didn't capture a lot of equity buying. But at the same time, they're a player. And they were not a player. And they are a player. You mentioned Bitcoin, Jim, back below 57k. Second biggest outflow, I think, on record. I think people are trying to come up with a thesis. But, meanwhile, if you're talking from an American, Agnico Eagle, you get a company like Agnico Eagle. That's what you wanted. If you look at the chart of that, that was Bitcoin. That was, they were one from home with Bitcoin. And now, Agnico Eagle is just pulling away. And why that is? Because they're making it for very low. And they're selling it for very high. And it resonates. And they got a 2% yield. That's your Bitcoin, Agnico Eagle. At the same time, coin does get upgraded over at Barclays. Yeah, look, these are companies that have done it right. I was too bullish on Coinbase when it started. But they've hung in. And it's like micro-strategy being recommended. People want to do ancillary Bitcoin. If you want Bitcoin, go buy Bitcoin, okay? I am indifferent. I want some gold. I want some Bitcoin. I want some hedge against what both candidates are saying about spending. It was an interesting, the upgrade, by the way, is a weird one where they upgrade to equal weight. But they cut the target to 169. Yeah, why don't you just erode your whole pieces? Memo to the analysts out there. When you cut your price target, cut your earnings estimates. They're in sync with each other. I found that, by the way, the Morgan Stanley, the big re-rating of all of the industrials, there's really kind of no edge to any of it. And I love it. I think that the actual copy and the theories are good. But there's no, it's called the 300 basis points above GDP. Who has that? I think they wanted to roll out the industrials, and I don't blame them. But they have to be done individually. They're not so much of a cohort, anyway. It kind of reminds me of the move. I think it was Wells on the banks earlier in the week, where they didn't change any numbers, but they changed some rating. It's like a vibe call almost. Yeah, a vibe call. There's a lot of vibe calls this week. And some of them good. Some of them are a bit Wells Fargo. I think it's undervalued. It moved all the way up to 60. Where it was, by the way, in 2018, not a big accomplishment. That is the bank stock that is most behind, and city is obviously questionable from the book, book, for any point of view. But I think this market is too schizophrenic. I mean, we thought that the food stocks were dead, because of GOP-1, and then we love them. And GOP-1 doesn't matter. I mean, we got to stop with the bipolar analysis. Just a lot of stocks that are good. The banks are good. The consumer products, good stocks are very good. Utilities are good. Industrial's kind of trying to figure it out. And tech bad, particularly enterprise bad, enterprise software, and anything AI. But remember, it's a bubble that's bursting AI, not the chips that make it. Was there news on CRM this week regarding AI? They want this company own. I've been trying to get a whole more bent out of the CEO this morning a little early out there. It seems like an interesting acquisition to be able to build out their cloud business and security. Salesforce has been a horrendous stock after a great quarter. I don't know what to say. Horrendous stock. Great quarter? No, it didn't matter. Nvidia started that great quarter didn't matter, theory. Yeah. The only other thing I would add, Jim, for the week is crude, where you were on pace for, I think, the worst week since October, not being able to get above 70 today. Our Bob, gas futures are in three-year lows. Incredible, I was reading Rusty Brazil-Arbian energy and what it seems like that the collapse in oil, it's a collapse in oil price. And that is very bullish, but it's not resounding say to Disney, which used to be like, "Well, hold it, theme parks." I think if oil, gas comes, gas comes down, it could help them. Those stocks seem to be, they're from Hades, those stocks. They got a, I just don't believe that there's no value in Comcast or Disney. It's got to be somebody. People go to work every day to do things, they create things. But so far, I'd rather be in American electric power, all things you can do. It always comes back to electric power. I love this. When we come back, we'll continue to watch this open. Dow's up 2.30 on the heels of that jobs number. As we mentioned earlier, bonds yields did tumble a bit, but then recovered some. Ten years, still around three and three quarters. We'll be right back. Time for Jim, and stop trading. Apple, you don't necessarily buy it ahead of a launch. That does not work. But we have two pieces today. Bank of Merck and TD Cowan talking very positively. The Cowan piece talking about artificial intelligence and how good they're going to fare. Womsey Mohan, who's an analyst, I've really come to light from Bank of Merckam. Global App Store revenues grew 12% in service truck, 14%. So in other words, don't buy it for the cycle. There's a lot of other things going. And I think that Apple remains a kind of a nice port in the storm, kind of looking for those. It's a, because it's an AI beneficiary. Whoever's spending a lot on AI, they get to take advantage of it. I have to spend a lot on AI. I remain, people should read our broad con note that was out last night about what to do when the stock is down this much. That's for the club. I really people have to urge, I urge people to get it because it's unemotional. And it's what's worked for us before. Because remember, this stock is up huge. People feel that it's not been a good stock. That's quite wrong. It's been a great stock. And it will still be a great stock of seven times, seven dollars in earnings power. Thank you. Thank you for Ben right just from the noise. Seven dollars in earnings power, you go sell it. Go ahead, just sell it. Just get out. I want people to get out now. The fable get out now. I'll sell it to 130. Good luck to you. I'll see you tonight at 11.45. Actually, you'll see them at six. Because what's on, Matt? Oh, wow. We have a terrific story, sweet green. Ooh, nice. And sweet green is delicious. It's reasonably priced. They've got the model that everybody wants, which is they've got good throughput. They've got a great locally sourced food. Terrific attitude, by the way, and a lot of hospitality. So it's a kind of mission of Danny Meyer and Walter Rob from Whole Foods and Ron Schake. Yes, of course. He's from Teneira, formerly in Kava. And I just think that when you talk to these people, they're pros about how to make people happy. Not just about food. And that's brilliant. Yeah, well, we mentioned the upgrade earlier in the week from Cowan looking at the engineering piece as well. Oh, well, we went to see this infinite kitchen. And it's so extraordinary. I would just go as kind of an eighth wonder of the world. It's so exciting. These guys are good. I mean, I've got to tell you, if I have to own a restaurant stock, I'm kind of rethinking. I happen to be a big believer in eat, which is Brinker. Obviously, I've been a big fan of it. Oh, yeah, a lot of Kava. The stock's been a red hot stock. I like chipotle. But Jonathan Neiman is a remarkable student of successful restaurants. And he's put it all together by that stock too. I feel like going after right here and going to Jeff Marks is my colleague for our club and saying, let's put this one in the bullpen. This is a good stock. Final thought on how viewers should think about the jobs number this weekend? Look, it's what we have wanted, which is that there's not mass unemployment. There's some unemployment. We're not hot anymore. That's the right level to buy things. Right level to the fed to cut. This is ideal. And just because they're selling a particular group, remember that that group has been the hottest group. That's profit taking in the semis. It's not necessarily the end of the world, the semis. Again, quoting my friend, Michael Semblis, is, please, this is not a slag of Nvidia. And I apologize. I have made it a slag of it is not meant to be. It may be that the hyperscalers are spending too much money. I remain a big believer in owning a video, not trading. Nothing changed for me. I understand it could seem that I don't care. Jim Gobirds will send you money. Go Eagles. Holy cow in Brazil. I met one of the Thunkins. 6 p.m. Eastern time as we circulate around 5,500. Don't go anywhere. You've been listening to the opening bell on CNBC's Squawk on the street. All opinions expressed by the Squawk on the street participants are solely their opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet, or another medium. 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Carl Quintanilla and Jim Cramer led off the show with market reaction to the August jobs report -- and explored what type of rate cut to expect from the Fed later this month. Broadcom dragged the Nasdaq lower after weaker non-AI sales weighed on the company's guidance, adding to what has been a rough week for the chip sector. Hear what Cramer said about buying the stock. The anchors also discussed former President Trump's 15% corporate tax rate proposal and the role he said Elon Musk would play in his administration if the Republican presidential nominee wins a second term. Also in focus: Costco's sales gains, Intel's slide, Warren Buffett's Berkshire Hathaway sells more Bank of America, all things football -- including what NFL Commissioner Roger Goodell told CNBC.
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