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. Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Kintaniel with Jim Kramer. David Fabers back in post nine of the New York Stock Exchange. Futures under some pressure as the street begins to consider just how turbulent this rotation might get. Vicks above 14 first time in six weeks. Earnings guidance a bit choppy, too, with J.B. Hunt, Spirit, and five below. Our roadmap begins with the rotation in the market. Is the Russell 2000 still the star of the show? Also ahead of double whammy for the chip sector this morning. We're going to look at where the White House and former President Trump fit into that picture. Plus a number of earnings to get to this morning, including market reaction to results from

Johnson and Johnson.

Let's begin with this market rotation after yesterday's 3.5% gain for the Russell Jim,

12% in five days.

That's going to be the best run in about four years.

It's a little unnerving because the stocks that are leading it tend to be stocks that have no earnings. They're small. They're all up 50% or more. I mean, you look at the top 10. We have such, we've got David Bax, we can go right to them. David, prelude therapeutics, a Pacific Bio, Aurora Innovation, Caribou. I know, that used to be a coffee company.

Lantheus, we know that's real, cipher mining, method electronics,

Salaris oil field, IGM. That's the leaders of this. So should we just go all in in this

index that everyone says is the place to be? Well, that is the question right now. Everybody

wondering whether this can continue past what, an 11.5% move in the Russell 2000 over five days.

We are now talking about, I think, a standard deviation in terms of the move versus the S&P of some six, which is not typical.

As, of course, you'd expect, given that the standard deviation move.

But it's causing a lot of pain out there.

There are those who are short the, you know, if you're running hedge fund, you may be short the

Russell in ways you're not even completely aware of parts of your portfolio.

To your point, there are any number of smaller healthcare companies and the like that are

certainly benefiting at this point. Not a lot of liquidity in the actual names in that, you know, the index is one thing to buy, but the names themselves. Thank you for saying that. It's very difficult to get in and to get out. Yeah, you know, these things are up. I mean, if you look at the parabolic moves, I mean, obviously if you buy 25,000 shares of some of these, I mean, the size of these, the largest, it's $341 million, the largest gain. And then you've got companies that are like Caribou, that's $246 million. It's up 59%. It has lost $1.38 last 12 months. And we're supposed to say this is it. This is the move of a lifetime and you better get in. I think people have to be a little under the hood. And when they look at these, they say to themselves, well, listen, Allo Gene Therapeutics has lost $1.72. It's a 45% 729 million. No, I am not going to play this game. But they're just, are they just buying the index? Yes, they're buying the index. And that's it. Yeah, and there's no liquidity in the other side. Thank you for mentioning. Well, this is what Elaine Garzarelli was saying at the beginning of the year. In 94, when the Fed suggested that their tightening was ending, Russell went up 55% in 17 months. Well, we need to see a rotation within the Russell.

We have these companies.

Now, look, there are some very good companies in the Russell that are up 30%.

But a lot of them are kind of like Hertz Global, which is up 30.

Or riot platforms.

That's a riot in itself.

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