Inflation Data-Fueled Sell-off, Fed's Mester on Rates, Dimon Delivers a 6% Message 02/24/23

Squawk on the Street

CNBC

Business, Investing, News

4.1 • 567 Ratings

🗓️ 24 February 2023

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla and Jim Cramer focused on interest rate hike fears and Friday’s market sell-off, sparked by the release of the hotter-than-expected January PCE price index -- an inflation gauge preferred by the Fed. The anchors also discussed what investors should make of Cleveland Fed President Loretta Mester's comments to CNBC about higher rates, as well as Jim's interview with JPMorgan Chase CEO Jamie Dimon, who said he believes the Fed might hike rates beyond 6%. Carl and Jim also explored Warner Bros. Discovery's Q4 revenue miss, softer ad sales, streaming losses and subscriber gains. Also in focus: The DOJ reportedly preparing an antitrust lawsuit to block the $20 billion Adobe-Figma Deal, Boeing halts Dreamliner deliveries, shares of Carvana and Live Nation slump, plus the market's bright spots.

Transcript

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0:00.0	Market moving insight and analysis join Jim Kramer, David Faber, and me, Carl Cantonia, on the opening bell hour of CNBC Squawk on the Street.
0:12.0	Good Friday morning, welcome to Squawk on the Street. I'm Carl Cantonea with Jim Kramer at Post 9 of the New York Stock Exchange.
0:19.0	David Faber has the morning off. Stocks are adding to a third weekly loss as the data again. Comes in hot. Core PCE,
0:26.7	highest annual rate since October, personal spending, best monthly gain in almost two years.
0:32.2	A roadmap's going to start with inflation, still running warm. The Fed's favorite PCE gauge
0:36.4	accelerates in January. Mester says
0:38.8	rates still need to hold above five, but the consumer is holding strong. Executives from booking,
0:44.1	Live Nation, Cinemark, all forecasting a pretty strong year. And then there's Warner. Discovery CEO
0:50.5	David Zasloff says his growth strategy is, quote, working. Let's begin, though, with the market reaction to the PCE inflation data, Jim. We're going to listen to what Jamie Diamond told you yesterday, but a lot of the data fits exactly with what he told you. We had a very strong month this country in January, and I sometimes look at this data. I say, did they listen to Doug yearly, a Toll brother saying that things were great?
1:12.2	They listened to Giant Home Builder.
1:13.0	How about what are?
1:14.1	Things are really good.
1:16.3	When you look at bookings numbers, they're incredible.
1:18.1	When you look at Live Nation, it's big.
1:20.1	We had a spending month.
1:24.5	It was like the nation splurge hiring just okay. But in terms of just consumption, I mean, it was almost as if tightening's over, and now people are back.
1:31.3	And I don't really know what to do with other than saying that maybe we just have to pay less for the S&P because that's what this number says, it can't last.
1:41.3	They're not going to let you this country have a level of inflation that would make it so that people spend as much as they're doing.
1:48.5	January was probably the strongest month. I don't know since COVID.
1:53.3	Yeah. Well, we, you know, when that January jobs number came out, you had a lot of folks say, brace yourselves.
1:59.5	Yes. Brace yourselves for warm data, whether that's weather-related or not.
2:03.1	Well, it's interesting weather-related because your cost of your heating, your regular bill is going down a lot.
	...

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