It's Jim Kramer here.

You're listening to the opening bell of CBC's Squawk on the Street.

Don't miss a minute of the action. A good Friday morning. Welcome to Squawk on the Street. I'm Carl Kinteneer with Scott Wapner, Leslie Picker, at post nine of the New York Stock Exchange. Kramer in favor of the morning. All futures, a bit mixed here is the last big data point of the year. Is Dovish? Headline PCE drops month on month, first time in three years.

Core now below the Fed's target month-on-month first time in three years.

Core now below the Fed's target on a six-month annualized. We'll get to all of it. Our roadmap begins

with inflation and Fed expectations. Core PCE. Prices rose less than expected. What it means

for rate policy ahead. Plus Nike shares, tumbling after slashing its sales guidance, announcing

$2 billion in cost cuts

and delivering its second straight quarter of worse than expected revenue.

And shares of Bristol Myers slipping ahead of the open after announcing it agreed to buy

Karuna Therapeutics for $14 billion.

Let's get to the markets in this reaction to PCE.

People were expecting maybe a doveish number after some of the GDP data, but six-month annualized is getting tossed around a lot at 187, obviously below Fed's target. We'll see, we'll talk to Lael Braynard later this morning about whether or not that's celebrating a bit too early. But the expectation is that you would get to target on a full year basis,

maybe in the next few months.

But clearly is showing progress because the prior six months, it was about 4.5%.

So 4.5% to below 2% definitely shows kind of a tail of in the bifurcation of this year that we've

seen.

Kind of justifies why the market is where it is, right?

Because the whole notion of this rally was based on the fact that the economy was going to

hold up, inflation was going to come down, the Fed's going to start cutting, and you don't

have to.

I heard one guest a few moments ago say the Fed wants to slow the economy.

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