Fed Day 1, Debt Ceiling Watch, Uber Beats, Chegg Plunges on AI Warning, J.J. Watt Visits Post 9 5/2/23

Squawk on the Street

CNBC

Investing, News, Business

4.1 • 567 Ratings

🗓️ 2 May 2023

⏱️ 44 minutes

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Summary

Carl Quintanilla, Jim Cramer and David Faber discussed two issues of importance to Washington and Wall Street: The Fed kicking off its two-day policy meeting and Treasury Secretary Yellen warning the U.S. could run out of cash by June 1 if the debt ceiling is not lifted. The earnings parade also in focus, including Uber shares jumping on a quarterly beat. A different story on the AI front: Chegg shares plunged after the education technology company warned it sees students turning to ChatGPT for study help. Five-time NFL Pro Bowler J.J. Watt visited Post 9 to discuss coming off of the retirement sidelines to invest in a different kind of football. Squawk on the Street Disclaimer

Transcript

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0:00.0	It's Jim Kramer here.
0:01.3	You're listening to the opening bell of CBC's Squawk on the Street. Don't miss a minute of the action. Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Kintanier with Jim Kramer, David Faber, the New York Stock Exchange. Actually favors of Milken once again in Beverly Hills. Busy Tuesday today. Plenty of big-name corporate earnings. A Fed meeting begins. Death ceiling chatter, and inflation running hot in Europe, Australia, with a surprise hike as well. Our roadmap begins with investors on Fed Watch as the May policy meeting gets underway. Then there's Yellen's warning saying the country could run out of cash by June 1, and the White House and Speaker McCarthy have set some talks, and AI's material impact
0:39.1	Chegg with this hit to its growth, IBM forecasting, 30% of jobs being disrupted, and then
0:45.2	Hollywood riders also seeking some limits on its use, and they go on strike.
0:50.2	We'll begin, though, with the markets in the Fed today, Jim, as we discussed, some of the inflationary scares.
0:55.7	We were expecting an extended pause in Australia.
0:58.7	Yeah, I just think that, look, things are still red hot.
1:03.9	And we haven't seen China really kick in yet.
1:06.4	I think that we're probably the best of all.
1:09.4	The reason why our best is because we've been raising rates so furiously that we don't
1:14.5	even know if we're going to start getting some problems with the regional banks.
1:18.1	And all the growth is in regional banks.
1:19.4	David, I don't know what those guys are saying out there.
1:21.3	I have to presume that a lot of people must think, one, that we're going to get some tightening,
1:25.0	and two, that the Republicans have everything to gain if they default.
1:31.1	Well, I don't think there's an expectation of default, at least. Again, that has not come up
1:35.3	that often. I did speak to Joe Manchin yesterday, part of the panel I did with him and Darren
1:39.9	Woods. And I did ask Senator Manchin, who's obviously an important uh... democratic vote in the senate
1:45.0	uh... and he was just pretty straightforwardly saying no way we're defaulting
1:48.8	just not gonna happen
1:50.3	of course he's also uh... a hawk when it comes to the budget so he was kind of
1:53.6	saying
	...

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