Squawk on the Street

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.

Jim Cramer emphasizes that Nike's stock won’t see $90 unless it tackles its challenges in China. He highlights Elliot Hill's plan to reshape Nike’s focus on sports and restore its credibility in athletics. The team discusses the positive signs in Nike's performance, including recovery in wholesale and inventory management, while also addressing declines in China revenue. Analyst Matthew Boss boosts his price target, adding confidence to the brand's turnaround strategy. Cramer believes a healthier marketplace awaits.

Adam Parker, Chief Investment Officer at Trivariance, shares insights on the pressure markets face due to the government shutdown. He discusses the implications for Q4 performance and how AI could drive productivity gains, especially in healthcare. The dialogue also delves into Nike's surprising revenue growth and its strategies for regaining market share. Additionally, the conversation touches on the IPO of Fermi, an AI data-center REIT, and Neptune's entry into the flood insurance market, which highlights evolving investment landscapes.

The discussion kicks off with the implications of the federal government shutdown and its potential impact on jobs data. The ADP report reveals a surprising loss of 32,000 private sector jobs. Nike shines with a strong quarterly performance under CEO Elliott Hill's turnaround strategy. Attention also shifts to Tesla's lease price hike post-EV tax credit expiration, while Ford's hybrid sales surge draws interest. The conversation highlights a growing wave of IPOs, OpenAI's advancements, and new dynamics in the sports betting market.

Cramer and Marks dive into two key stock picks, highlighting Boeing's recent FAA easing and cash flow concerns. They assess potential fundraising for a 737 Max successor. Meanwhile, they discuss Costco’s resilience, advocating for buying despite a 15% pullback and addressing membership metrics. Their insights offer a candid look at navigating today's market challenges.

Jimmy Fallon, the late-night host known for his humor and creativity, joins to discuss his new reality competition series, On Brand. He shares the inspiration behind the show, focusing on creative marketing ideas and the diverse range of contestants, from influencers to professors. Fallon also touches on how late-night comedy navigates the political landscape while maintaining its playful tone. He highlights recent guests on The Tonight Show and shares premiere details for his new series, which promises to be a fun blend of branding and competition.

Tensions rise as President Trump warns about possible federal layoffs amid a looming government shutdown. In Q3 wrap-up, the anchors spotlight standout stocks like Oracle and Tesla, while discussing the massive $14 billion AI infrastructure deal between Meta and CoreWeave. Jim shares insights from his new book on investing, stressing the importance of financial education for younger generations. Discussions also touch on Spotify’s leadership shakeup and banks leveraging AI for enhanced productivity.

In this discussion, Costco emerges as a promising stock buy, with Jim Cramer highlighting its attractive valuation. The duo also dives into Nike's inventory challenges and the turnaround strategy under new leadership, suggesting early investments could pay off. Additionally, they review Boeing's improved cash flow prospects following FAA certification easing. The conversation wraps up with insights on Costco's recent quarterly performance, showing solid membership growth and better margins.