'Squawk on the Street' crew react to March's CPI report

All right. Let’s start off though with the broader market. Jim, get your reaction to the hotter than expected CPI print. We’ve seen and heard from our friends on Squawk Box, obviously the analysis from their guests in terms of expectations for a Fed rate cut which are fading fast, the yield curve actually inverting a bit, you’ve got the two year moving up hot more in yield than the 10 year right now. So you start thinking, well why did the Fed kind of commit to neutrality because these numbers where the numbers what was bad was worse. I mean we’ve been worried about shelter for a long time shelter going in the wrong direction. I think the employment over on Friday gave you a good read of what was going to happen of of things that we’re have to cost more. We we have tremendous surge in people who work in travel leisure. So of course those wages have gone up. We had a surge of health care. Those wages have gone up. But David, there’s a war premium to oil and we know there’s a war premium to oil. So that should be the least of our concerns. As long as there’s a war, there’s going to be a premium. If you think that war is going in the Middle East is going to last for MP in the Mideast war going to last for a long time, then there’s going to remain a premium. But the only number that I really, the numbers that I really freak out about, I guess I’m supposed to freak out about, are just the endless ways to be able to find people to have somewhere to live. And that includes immigrants, of which by the way since the government doesn’t have any numbers at all, we have to presume is hot and it won’t stay. By the way, rate raising mortgage rates only makes it exasperate because exacerbates because we don’t. You know you can’t you don’t want to build. If you’re Toll Brothers, you look at these numbers in, you know, I’m gonna make fewer homes. So that’s the intractable part. That’s the part that if you raise rates wouldn’t make things better. So that’s where the feds really in a box, not food. I mean finally food. Stop being more expensive at home or it’s a little more expensive at the store. I like that. But these numbers are the numbers of an economy that is on the move. It is terrific. And if we’re all going to sweat the program decide that the 10 year and 30 year auctions going to go bad and we get to 5%, you and I have been there 5%, that’s called a great level. So I don’t want to lose sight of how a natural but the fact that we’re we may we may very well get no rate cuts for the remainder of this year. We’re very different than what people had anticipated as 2023 came to an end not to mention even a few weeks ago or months ago. Well those people what is that going to mean for the broader most people are ruling OK they may be but they can also vote with their feet and say well I’m not going to buy equities right now. They can go buy CDs, they can go buy the shortcut. I mean, I have a lot of short rate paper and I’m looking at it. I’m saying, wow. I mean, what do I do? Buy more short rate paper by C DS, CD rates went down yesterday. That’s kind of disconcerting. But I just think that there are a lot of people who are on the wrong side of this trade and they’re frantically getting out. And it’s you. You see them first in the futures and then there’ll be a lot of people who are very scared. And they’re in Mag mag 7 and they don’t know what the mag seven are other than the fact that it’s not Steve McQueen and Yield Brenner anymore. And then there are a lot of people in the industrials and they think, Oh my, I guess the data centers aren’t going to be built out. That’s wrong. And then there’s just fellow travelers, David, fellow travelers who just say, you know what, this markets been good since the Fed pivoted. Oh my, maybe the Fed’s done. Done. All right, So what does the year look like for a stock market in which the Fed is. No, it is. You know, we’re neutral. They’re new. In other words, no rate cuts. Well, one or none. Look, I, I, you know, Rick Chantelle has been been very right about what’s going to happen with the auctions, I think. And yesterday he said that there was an auction, a short rate auction that was very bad. I think this auction is going to be very bad today. But I also think I’ve come back to say let it come in, let it come in if you haven’t taken any profits and you don’t know what you owe. OK, so we get let’s get the invet inveti. I’m sticking by a long term view of NVIDIA. I’ve had a long term view of NVIDIA since 2012. It might change. No I mean the Intel so-called claim that they’re faster, stronger this or that mean give me a break, No one’s committing to that one. NVIDIA is a great company. It’s got a very low multiple. But if you don’t know what NVIDIA is, David, and you bought it because you liked what I said about it, why don’t you sell some, you know, just like please, please me sell some so I don’t have to hear when it’s at 800, why didn’t I get it. Although we do have Morgan Stanley raising its price target. Oh yeah, with 1000 bucks is this continues to strengthen for NVIDIA. They have, But So what? We’re talking about the hyperscalers planning out data center expansions for the next three to four years. That would tend to indicate durability. There is great deal, but that’s why I’m saying own it, don’t trade it. But I also have. We also know that there are people who don’t know what they own. And when you meet people who stop you and say thank you for NVIDIA and then you follow up and you say, what does NVIDIA do? They’re stunned. They’re stunned and they don’t know. I mean, they think of NVIDIA. Let me tell you, they they wow, Jensen knew it. That’s what they say. Those are the people who have, they’re the fellow travelers that are most worried about, they don’t know what they’re doing in NVIDIA. They see it go down and they say, well it must be wrong. Those are the people you you’re you’re going to have them reassess just like there are people who are reassessing the Fed. And then once rates get to where they have to go, which is not that high because there is frankly a certain level of self correction, you’re fine, but nobody wants to hear that you’re fine. We have cash for travel trust. I’ve been waiting for decline, OK. We’re getting the decline. Does that mean I should now wait for bigger decline? No, get the decline. I don’t know where. And with this, as we’re calling it a correction, this decline of 12% from the highs, Nvidia’s multiples down to what, Jim, I don’t where are we on 20? Well, I mean it could be, it could be 23, yeah next year. But David fell like if we go through, if we growth rate, if we bore people and don’t talk about Musk or I haven’t talked about Buffett lately, let’s bring him into the rating scene. Sure. If we go go over this news release from the seat front on this on the consumer price index of Labor, I mean it’s energy, it’s rent and it’s damn. But at least I mentioned Buffett, it’s it’s auto insurance. Will we please have some sort of competition in auto insurance? Food away from home keeps going away from home. I mean what are you going to do, stay home? Look, the last month was actually not that bad in terms of food away from home. Liquor prices are coming down. Why don’t you realize that? But these are just sticky. They you need commodities to come in a little. They are. And you need labor to cost less. And that’s what the immigration issue is. The hidden labor workers in the kitchen will make it so eventually you’ll be able to get a cheap burger, fries and not Diet Coke, but Jack and diet. All right. So you’re not overly concerned. Look at a market. No. Watch the SMP have a significant decline again. When we start trading 22 minutes from now. Look, if again, if you know what you own and you look at the news release from the Bureau of Labor Statistics and you decide, you know what, I am going to bail out of NVIDIA because I see this food away from home numbers bad. And I’m very about very worried about used cars and trucks. Well, I mean, used cars and trucks are actually pretty good. So let’s forget that, Then you shouldn’t have been in or you got a chance. You’re up. What? Sell it to me, come down so I can buy it? Because I know what it is. I know what Infinite does. I know that the Blackwell is multiple times better than what Intel’s doing. I know that Google and NVIDIA are working together. I know the chance, Wong said. If Google’s making a chip, I want to help, is that a reason to bail? We’ll go ahead. I said it over and over again after the after the GTC conference, the stock goes down. So now we’re in the GTC conference. So what? I’m going to let you Wow, what a shocker, right? Shocker.