Squawk on the Street

Robert Kaplan, former Dallas Fed president and Goldman Sachs vice chair, shares insights on inflation and labor market dynamics, amid a government shutdown. He discusses the cautious stance on Fed rate cuts and the rise of gold amidst fiscal concerns. Joining him, Orlando Bravo, co-founder of Thoma Bravo, argues that AI is driving substantial growth, distinguishing it from a bubble. He explores AI's transformative effects on software and warns of potential job displacement in call centers, all while advocating for savvy investment choices in the private market.

A tech rally is underway, driven by the OpenAI trade and AMD's partnership with ChatGPT. Gold has surged past $4,000 for the first time, fueled by supply constraints and rising demand. The hosts declare 2025 as 'the year of magical investing,' showcasing growth stock picks. There's buzz around Tesla’s upcoming product event and a $2 billion investment in Polymarket, suggesting a shift in betting trends. The conversation also touches on chip supply issues, employment data, and the competitive landscape between AMD and NVIDIA.

Boeing's rising 737 Max production is spotlighted as a promising investment opportunity, with plans to increase output to 42 jets monthly by October and potentially 53 by 2026. Cramer clarifies that recent stock dips were due to concerns about another delayed aircraft, suggesting the negative sentiment was exaggerated. He further discusses how broader market reactions are being influenced by inventory issues across various companies, including AMD and Nike, highlighting a mixed climate for investors.

Elliott Hill, Nike's CEO who returned from retirement, discusses his transformative vision for the company, focusing on sport-led products and revitalizing culture. He shares strategies for clearing old inventory and organizing by sport to sharpen market focus. Ruchir Sharma, a macro trends expert at Rockefeller, argues that America’s growth is increasingly tied to AI, providing insights on its economic impact and advocating for a balanced investment approach between AI stocks and international markets.

Lisa Su, the CEO of AMD, leads the company's AI initiatives, while Greg Brockman, co-founder of OpenAI, directs their innovative strategies. They discuss a groundbreaking multi-year partnership where OpenAI will purchase six gigawatts of AMD GPUs, a deal that could transform the AI landscape. Brockman explains the necessity of this collaboration for massive compute capabilities, and Su highlights AMD's role in fueling AI growth. Their chat delves into environmental concerns, market dynamics, and the future of chip technology in AI.

This discussion dives into the pharmaceutical market's current trends and challenges. Jim Cramer urges Apple investors not to panic despite downgrades, emphasizing the difference between traders and long-term holders. They analyze the timing of analyst ratings and why they often cater to hedge funds rather than everyday investors. The hosts also explore how carrier promotions boost iPhone sales, highlighting how trade-in incentives influence buyer decisions. It's a deep dive into market strategies that resonate with both seasoned and new investors.

Jan Hatzius, Chief Economist at Goldman Sachs, dives into labor market dynamics, highlighting a loosening trend and the essential role of BLS jobs data amid the ongoing government shutdown. He speculates on upcoming Fed rate cuts influenced by economic signals. Meanwhile, Rick Santelli details the ISM services data, showcasing slower orders and rising prices. They also explore the implications of a rare downgrade of Apple by analyst Edison Lee, driven by a structural smartphone slowdown and cautious expectations regarding foldable models.

The S&P 500 and Nasdaq reach new highs despite a government shutdown halting the September jobs report. The AI boom raises questions about a potential bubble, and Goldman Sachs' CEO warns of a future market drawdown. Discussion surrounds the contrasting fates of bank stocks and tech giants, along with insights on retail trends showcasing economic divides. Concerns about falling behind in the global AI race intensify, while recent downgrades for major players like Apple stir debate among investors. Economic impacts of the prolonged shutdown loom large.

Phil LeVoe, an automotive reporter, dives into Tesla's impressive 497,000 Q3 deliveries and the intense focus on autonomous AI. He discusses the effect of the expiring $7,500 EV tax credit, which significantly boosted U.S. demand for Tesla vehicles. LeVoe also touches on Rivian's reduced delivery guidance and the challenges BYD faces in global markets. The conversation reveals insights into the shifting dynamics of the EV market amid a fluctuating economic landscape.

Dan Niles, founder of Niles Investment Management and tech investing expert, shares his surprising market outlook and top picks, urging investors to ride the current bullish wave. Paul McCulley, former PIMCO economist, discusses how delays in government data could ease Fed pressure for rate cuts, while also examining the uneven impacts of monetary policy in the K-shaped economy. Additionally, insights into Tesla's record deliveries and Berkshire Hathaway's large acquisition provide listeners with a glimpse of the shifting economic landscape.