9AM HOUR: Remembering 9/11 25 Years Later, Inflation Watch, Oracle's AI-Fueled Rally 9/11/26

0:00Some of the most important design choices are the ones that go unnoticed. The details that together make an experience feel intuitive, comfortable, and above all, exhilarating. At Acura, that means looking closely at how every detail can make your experience behind the wheel more rewarding. Every lesson learned and every idea refined becomes part of what comes next, and it lives inside every MDX, ADX, and Integra. That's precision-crafted performance. That's Acura. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, U.S.

0:37and global economic news, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash marketupdatepodcast or find Schwab Market Update wherever you get your podcasts. It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action. This morning, we remember a tragic day in our nation's history. 25 years ago, the 9-11 terror attacks killed almost 3 ,000 people, including 2 ,753 New Yorkers. Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanillo with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange.

1:18We're going to remember 9-11 all morning long, even as we do keep pace with the markets. Equities are responding to some relief in oil prices. CPI running a bit hot on monthly core. odds of a Fed hike next week, now 92%. We'll begin, though, of course, with remembering 9-11. David, you were on set that day. And even for the past decade plus, we've sat at this desk, remembered it every year. There's an entire generation that's grown up with no active memory of it. And it's important that we tell them that story. Yeah, I think like a lot of people, of course, you also just stop for a moment and think, wow, a quarter of a century has gone by, and yet I think so many of our memories of that day are as clear as they were in the immediate aftermath of the tragedy that occurred then.

2:06So yeah, I remember it extraordinarily well. Obviously, this day of memorial, I always remember people that we lost that I knew personally, and the 343 firefighters, actually, is the ones I always think of as well. just the bravery and the tragedy. I was down here across the street at 14 Wall, and I remember that it was dark and it was snowing. It was a lockdown because it was snowing and we didn't know what it was. Some of it was research, some of it was the obvious. And look, it's with you every day. It's an important day. We're going to be watching a series of events this morning. There's a look at the Pentagon.

2:53We do expect to hear from the president later this morning. And then in lower Manhattan, moments of silence both there and here at the New York Stock Exchange coming up in about 18 minutes or so. We'll keep an eye on that. Interesting, really good piece, Jim, by John Bussey in the Journal today, looking at the broader geopolitical fallout that came not so much from the day, but our response to it and the ways in which that took arguably the country's focus off of other elements of geopolitical. Right. I mean, it was just the reverberations. People, there's, there's three, one, 34.5 million, 35.4.5 percent of people weren't alive.

3:35Yes. Here's a moment of silence. This marks 903 when United 175 hit the South Tower.

3:46Blink Blink

4:25Joshua David Birnbaum George John Bishop Chris Romeo Bishundat Jeffrey Donald Bittner As they recite the names of the victims, let's take a look back at at least how our network covered the attacks 25 years ago today. We begin with a look at the late Mark Haynes. I'm sorry, I'm going to interrupt you right now. We have what appears to be a very serious... Is that the World Trade Tower? This is... A plane hit it? They think so. This is one of the towers of the World Trade Center in Manhattan, which is clearly heavily involved in a smoke situation, and one would assume there is fire. Mark, I heard from somebody who spoke to someone in the building They just called me and they said they were told to evacuate and that they were told that a plane had hit the building.

5:22A second airplane hit the other tower, which would indicate that what you have is this is certainly strong evidence of some kind of suicide attack on the buildings. New York Stock Exchange has been evacuated. The New York Stock Exchange has been evacuated. Yes, there you see it. I'm down here at the big board, Mark. I was coming down the West Side Highway when the first explosion occurred, and we looked up, and my driver said, What is that? And there was a gigantic fireball. The AP, Alina, is reporting an aircraft has crashed into the Pentagon. Witnesses say, being cited by the Associated Press, an aircraft has crashed into the Pentagon.

6:04This is certainly, it's almost certainly a terrorist attack, And if it is ultimately confirmed to be a terrorist attack, this is the worst terrorist attack in history. And it was that moment, David, I think, when we, the realization that it was a terror attack, that must have been like a gut punch amid all the confusion. I can't even imagine the news that was flying through the control room and trying to be so responsible with what we knew at the time to be true. Yeah. And, of course, the way information flowed back then is very different than today. day. We really were not dealing with the internet at all as a source, so we had a very limited means of seeing headlines, basically, that would cross.

6:49And what has always been my go-to, which is calling people, which was, I mean, you heard me calling people who then knew people in the buildings who had heard from some of them prior to, obviously, what transpired, but after of the plane that hit. Yeah. And, you know, it was an absolutely beautiful day. Of course, we always talk about that, one of those perfect, pristine days. So you immediately wondered what could possibly have happened here when first you're like, oh, must be just be some little plane that lost its way. We'll watch it all morning long. Remembrance is still to come. We'll talk to Lloyd Blankfein, I think, get his reflections on the day later on today.

7:30Let's talk a little markets. We are trying to snap a four-day losing streak as oil prices pull back today on the inflation front. We got August CPI 3-4 year-on-year. Core was at 2-4, Jim, and that is the lowest. We were hoping for that number since 2021. Right. Look, this market's been controlled by the price of oil, and everything starts with it. That's why I know that there are lots of stories about the long bond, lots of stories about Treasury buying some fatuous move, and a lot of talks about the Fed. But it doesn't matter. This market, if you had oil at 110, you would have the 10-year at 5.

8:09And if oil went to 120, you'd have the 10-year at 5. And somehow we seem to think that these are independent of each other. But they've actually been lockstep. Heard the same. That's what everybody as well said to me this morning, Jim, which is it's driving the bond market. In fact, oil is driving the bond market. And, of course, then the bond market has its impact, as we well know. The oil market has asymmetrical knowledge of the treasuries. Headlines, Carl, that indicate what potential new talks of some kind. So Bloomberg does have a piece that the Gulf states might be weighing a meeting with Iran in Oman on Monday.

8:45No idea who might attend, the Saudis, UAE, but the degree to which they're willing to pitch in and try to find a solution is bringing some relief. That's the reason we're down after that move yesterday. Yeah, Oman's not necessarily a friend or an enemy, but the Gulf states are friends. And obviously there's, you know, who should take out the hoodies and who should defend themselves and whether the U.S. should defend. And so far, also, we noted that the Iranians are now shooting at our warships. So, I mean, it's as tense as it was when we were bombing, because I think that we didn't lose any soldiers, thank heavens, other than the ones that were, you know, away from the battle zone.

9:28This is different. We know that they're trying to sink, maybe they're trying to sink an aircraft carrier. So it needs to stop. It needs to stop before that happens. And then, of course, we're watching diesel in particular. 606 is the average today. It's up$1.20 in two months and 60-plus percent year-on-year, Jim. California,$7.98. Yeah, I mean, when you see the X food and energy, it's like, how about X everything but food and energy? I mean, honestly, medical care services are up a little bit. But, I mean, when you look at these numbers, this is diesel all over it. Food at home, food away from them.

10:06To get this food from where it is to where you eat it or buy at the supermarket is about diesel. It's about diesel. And diesel is at all-time highs and therefore are right. That said, what's your read on the CPI in terms of, I mean, we talked about 92 % chance we get a Fed hike. But it seems sort of neutral on that debate. Neutral, but I felt that something that popped out that I didn't like was they have the real average hourly earnings and they decreased. and I know when I'm speaking to Brian Winant, CEO of Bank of America, he said, look, as long as the wages are ahead of inflation, we're fine.

10:46That's not the case this month. That's worrisome because average people can't afford things because of gasoline, then you'll have what's happening in the stocks in retail, which are predicting that this is going to continue. The retail stocks are terrible. Terrible. Terrible. just terrible. I mean, I... When you say retail, can you be a little more specific? Sure. Apparel, which is up three in this thing. Apparel is really bad. Food is bad. Kroger down... Kroger. Kroger with the worst comps in a few years. That is what... We talked yesterday about consumer tells, and you pointed to Capital One, a quarter to date, is not encouraging.

11:28No, at all. That's one of the reasons we bought BMI Bank of New York. I'm not trying to hedge this. We're not a hedge fund trust. But what we're trying to do is have some non-exposure, non-credit exposure. BNY is none. It's really well run. You know, it's funny. You have Lloyd Blankfein. He reinvented the company in the image of Goldman in terms of being efficient and being one company. BNY was multiple companies when he got there. But I think that Capital One has these two acquisitions. They discovered and did Brex. and Richard Fairbanks still hasn't put it together. And in the interim, if we have a spike in delinquencies, then I'm in the wrong horse.

12:13David, when you nod at me, people on the podcast think that you have just left me hanging or that maybe the podcast... Never, never. I'm just looking at you, looking into your eyes and nodding. Yeah. That's good. Yeah, that's good. Yeah. Nobody likes you. I haven't looked at you in person all week, so... I'm just taking you in. And I have to congratulate our partner for just really fabulous reporting. I'm like spreading it. Oh, thanks. Yeah. No, it was a good series of interviews. Interesting, obviously, getting a read. Always worth being on the ground. In San Francisco, the place where a lot of it's happening, as you well know, in terms of basically what 70 % of the things we talk about every day.

12:52I know. I mean, and there's John Stanky. I mean, you have to know what Stanky's thinking because we've got an iPhone that's expensive. Yes, we do. Everyone's buzzing, Carl, about how if you get the duo and we get Starlink on the planes, NFL live. Yeah, from Australia, from Melbourne, yes. Well, yeah, I mean, they don't want to watch every game. Oh, my God. I mean, I'll tell you what, speaking of Stanky and AT &T and CPI, wireless services within CPI 5.9 is the biggest jump on record. Not as a pistol. I mean, it's not as big an impact as gas. No, but it is. everybody pays. Yeah. Oh, you can't not pay.

13:32No. Do you think people are going to get two phones? Two phones? Yes. Because you want to do so much on the duo that you don't want to, like, get off and on. You want to call people. You really think the duo is going to be a high-selling product? Are you watching the Rams? I thought the Rams were good. You know, that kind of thing. Coming up, moments of silence at both the NYSE and the Nasdaq in remembrance of those we lost in the 9-11 tax 25 years ago today.

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14:37With higher predictability and greater access to credit, everybody wins. Get started at VantageScore.com. Some of the most important design choices are the ones that go unnoticed. The details that together make an experience feel intuitive, comfortable, and above all, exhilarating. At Acura, that means looking closely at how every detail can make your experience behind the wheel more rewarding. Every lesson learned and every idea refined becomes part of what comes next, and it lives inside every MDX, ADX, and Integra. That's precision-crafted performance. That's Acura. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab.

15:13Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, U.S. and global economic news, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash marketupdatepodcast or find Schwab Market Update wherever you get your podcasts. about 1.6 % for the week but Oracle up 7 on their guidance we're going to get you some news on them as they try to re-approach the 200 day that's coming up in just a minute don't go anywhere this message comes from Wise Business the only account your business needs to scale globally you're building a business with global ambitions but hidden fees are eating into your margins with Wise Business you can pay overseas suppliers without exchange rate markups Have customers worldwide get payment details in 22 currencies so you get more of each hard-earned payment without hidden conversion fees.

16:15Be smart. Get wise business. Download the app. T's and C's apply. Some of the most important design choices are the ones that go unnoticed. The details that together make an experience feel intuitive, comfortable, and above all, exhilarating. At Acura, that means looking closely at how every detail could make your experience behind the wheel more rewarding. Every lesson learned and every idea refined becomes part of what comes next, and it lives inside every MDX, ADX, and Integra. That's precision-crafted performance. That's Acura. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab.

16:50Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, U.S. and global economic news, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash market update podcast or find Schwab Market Update wherever you get your podcasts. Jim pointed out a few moments ago that there's some stories today that mention roughly one in three Americans have no active memory of 9-11. And so today has become an important ritual for the country and the financial community wall street and the surrounding industries the nasdaq and the nyc are about to observe a moment of silence here honoring the victims their families and the survivors of the september 11th terror attacks which did occur 25 years ago today

17:57Thank you.

18:35Thank you.

18:55this morning's top performers on the pre-market. Shares rallying on a quarterly beat as cloud infrastructure revenue more than doubles. This is Mike Cecilia talking about AI demand on the call last night. Customers use our embedded AI capabilities more than 150 million times during the quarter, with usage growing 42 % sequentially. Our AI agents executed more than 3.5 million times in production during the quarter, nearly doubling quarter over quarter. Customers have over 2 ,300 AI agents in production, and that's up 90 % quarter over quarter. All right, so we knew the implied move, Jim, was in the double digits.

19:41Not quite there, but what'd you make of it? What I make of it was it was a normal call. Now, obviously, they don't have the same business mix that they used to, But I found a calm, reassuring call where they have lots of orders. They're delivering. They talked about what a bad plan is, which is very funny, which is that, one, the people think it's going to go perfectly, because it's not. They have been able to adopt correctly. The stock, I think, can be up substantially. And, David, two reasons why I think you got better. One is that the balance sheet was not wrapped. Right. Okay. And, two, they have$664 billion RPO, or many performance up.

20:16That's much more. People are looking for$630. That's a very big delta. It's a big number. It's a big number. And they have taken away the overhang, the worry that they were going to sell stock. We've talked about that a lot. I've talked about it. It was made clear to me after I spoke about it last on our air with you a number of weeks back that they had likely done what they have now confirmed, which is under an at-the-market program announced back in June. They completed it. And we learned about it in the quarter, as I sort of anticipated we might. $20 billion, though, they have sold in stock.

20:49I know. And then it's interesting, the CapEx number is$28 billion, but they're getting prepayments from their customers. So their CapEx spend is not accelerating in the same way you might have anticipated, at least because they're taking money in as well. It was a good quarter. Hey, by the way, one of the things that I would love to see, they bought this company Cerner. I'm very critical of that because that means you're going up against pretty entrenched forces like Epic. And they had a good quarter. They've gotten some big business. I no longer think they have to fire sale it because the balance sheet's better.

21:26So this was a quarter where I think the people who are selling their bonds and shorting their bonds, they're going to have to cover because there's just a ton of business. And this Mr. McGorick, Clay McGorick, he's an infrastructure specialist. He did spend time at Amazon Web Services before he joined Oracle 2014. He may be a bit of a master builder, and I didn't know that he had it. Last time I saw Clay was at the Stargate site, obviously, in Salinas Township, Michigan, where they are building a massive 1.4 gigawatt facility that they're going to have to put all the equipment in. And, of course, Related Digital is the builder of the building and the power, right?

22:02You shell and power. But what we learned as well is, again, just to come back to that, that their need to raise capital may not be quite as much because you're getting these prepaid deals where the customer and future is actually giving you money up front. And some of them are also what they call bring your own hardware. So it's not quite as capital intensive as you might have thought. And so that gets back to the idea, well, how much debt do they need to raise from here? They've already raised$20 billion in equity, so it's seemingly done for this year on that front. Look, I mean, you know that the operating cash flow was better.

22:36I know you're worried about CapEx being so high. I think you have to be. Free cash flow is still not there yet. Negative$5 billion for the quarter. Well, that's not good, but I think there were a lot of people who expected this thing just to blow up and go away. And if you thought that, that's been a mistake. Now, are they Bechel, which builds a lot of things? Are they even Sterling, that I had one last night that builds a lot of things? Here's what they are, I think. I think that they are a company that turned out to be very accomplished at building things that can be relied upon. And a company that can be relied upon in an industry where you have to put up these eight-year projects is a company that you might want to buy.

23:14It's not the company where they're doing database software. They did pivot. Maybe this was Larry Ellison's. You know, this is what I felt. Maybe this was a last hurrah. I don't know. The guy's got like nine lives. But this is a good hurrah for Larry Ellison. And I was skeptical. I'm taking that skepticism off the table after this. That ATM was very interesting. David thinks the ATM is an ATM machine. And it turned out you were right. Well, yeah, it doesn't mean that they're not going to. But what's a stock look like without putting all that pressure on everything? No doubt. And again, they did take care of it earlier in the summer.

23:50I think they did sell a lot of stock at the market. We'll see if they renew that program next year. I don't know. But it does take off the table the idea of some sort of large equity raise and the delusion that would come along. They know how to trade their stock better than GameStop, which always has those ATMs going. Yes, it does. Now, Larry will say, see that, Kramer? I mean, son of a baby's doing so great. Then he says GameStop. Son of a what? But I do think that they've got more relevant experience and evidence of execution than I thought. And I've been too skeptical. With that, let's get to the opening bell here as we do see some names like some of the hard-world names, Micron and B, even Corleaf and EBS, all in the green pre-market.

24:31They take a lot too. Crazy. They take a lot. At the big board on Wall Street today, it's 9-11 Day. founder and organizer of the 9-11 National Day of Service and Remembrance, honoring the 25th anniversary of September 11th. At the NASDAQ in Times Square, it's FDNY and the FDNY Foundation, commemorating the 25th anniversary as well. And at CBO in Chicago, it's former firefighters and police officers in remembrance of September 11th. So Jim, trying to get back to 7650 or so after having dipped below 7 ,600 yesterday. The one thing that's been a constant, a very odd constant, is the financials have been pretty good.

25:14You guys will interview Charlie Sharp. Let's see, Sarah, with that excellent interview, Charlie Sharp. And then the stock responds and it goes up. Then he doesn't give up the gain. JP Morgan up five points today. This is a very interesting market because, yes, we always have oil going up. But the financials have not given up the goes. And that is the you can it's a slim read to hang on. but it makes me feel better given the trashing of the industrials and the retail. Yeah, financials over three months, the best sector only behind energy, Jim. Yeah, up almost 10. Now, you don't have, look, we know two things.

25:46The S &P is still not far from its high, even though we're really oversold. And when you have J.P. Morgan be your leader, I don't know, fortress. It is a fortress, yeah. You know, they're doing very well. I don't know if you like follow. I'm sorry? Not being facetious. JP Morgan, they speak softly and carry a big stick. Their numbers are really fabulous, and we just don't talk enough about that. It's such an enormous financial institution involved in so many different things. You're right. And even your Wells Fargo, to your point, has come off the mat a lot this year. It's still negative as opposed to that cohort that it's a part of.

26:24You know what Charlie would say? You bought it at 33, shut up. But he wouldn't use the term shut up. We're diplomatic. Guys, I wanted to come back to a story I followed in late July involving a gentleman named Leopold Ashenbrenner. Oh, my God. Remember him? Did you see me go on this one? Are you going to prove—did he come back Friday? And I wanted to talk about what is—and I've been hearing for some time, but now I've confirmed— his reentry, so to speak, to the public markets more as a buyer of options. And I don't want to make too much of this. Of course, we reported a great deal, of course, on Mr.

27:04Ashton Brenner in late July and his significant losses that he was taking on his public equities portfolio, which was then sold to Citadel, essentially, that has, as we've learned from Ken Griffin since, disposed most of that. But he kept his privates and he kept a small public portfolio. I never was able to determine exactly what it was. But I can tell you that he has returned to buying and buying options, as Jim just indicated as well. It's been around a little bit, but I can confirm it now. Hundreds of millions of dollars worth of premium late last week and early this week. And the names there, as you might expect.

27:46I won't give all the contracts, but it's Advanced Micro, it's Boom Energy, it's Core Wave. Yep, all the typical names that were a part of his portfolio. So it does appear at least he is returning to the trade that, of course, brought enormous, enormous gains until the blowup that took place in the month of July for situational awareness. Of course, the hedge fund that Mr. Ashton Brenner runs. Again, I don't want to make too much of it in the sense of it's unclear whether he's taken in any new money for public equity investing or whether this was perhaps some of what was remaining in terms of his portfolio there.

28:23But it is call option buying, Jim, of some significance. It has been noted by market participants. And that's only increased coming out of San Francisco, I can tell you as well. Some of the conversation at the conference is, oh, yeah, Leo's back. and didn't want to miss the opportunity to at least mention that, given his importance in the market and the fact of so much time that we spent and so many people who were following him, Jim, when we started talking about this young man, let's call it, earlier this year. Well, look, I mean, Bloom has tremendous, really, I want to roll. This is the cleanest fuel.

29:00A lot of the guys who build talk about that. These stocks, SK Hynix is probably the cheapest stock in the world. all of the ones he's buying are legitimate. What I don't like is the way he buys. And this is what we learned. There are flex options. We saw that when it's bad, it really gets bad. And that's because you have to short him. And when you short him, you can blow him to kingdom come. And he's going at it again. And, you know, it's good when he moves his stock. And by the way, this is a man who does not know how to trade. Unless you really think that moving your stock up is right. But, you know, come the Armageddon 2, it's going to be just as bad because now at least we know it's him.

29:41We know he's not well capitalized. And people are going to shoot against him. That's what's going to happen. That said, of course, and again, people can remember the reporting in the day in question, a lot of reporting that I had done as well in the days leading up to it. They did not sell the anthropic stake. And that is a significant ownership position for situational awareness. My understanding is that it's still not been sold, even though there were negotiations right up to the very moment that then Citadel came in and said, no, we'll just take the entire public, more or less, almost the entire public equity stake off your hands, which does get you to Anthropik.

30:13Still waiting on an S1. Not sure when that's going to show up for that company. Do you know that I think it's going to happen immediately? I really believe that. Well, you know, I'm not going to sit here and guess timing, but it is going to be a fascinating read, Carl, when we do get a look at that IPO prospectus from AntProfit, when it's made public, certainly. I think it's going to show incredible growth. I think they could show probability. We spend a lot of time talking about Doomsday right now, and I get that. But compute power, if you go over what GEV, say G.E. and over what Oracle says, go over what Microsoft said last night.

30:48The desire to have more compute is so huge, and a lot of it is that. Yeah, Microsoft reportedly planning to triple their data center capacity to 38 gigs by 2032, up from 12 now, which a lot of desk notes are like, if you were worried about the CapEx cycle peaking too soon, that obviously delays that some way. And they're going to have to use Space. I believe it'll be space. Well, right now, Antropic is looking everywhere, but still terrestrially, as they continue to secure even more compute for that company. We've got eyes on the national September 11th Memorial in lower Manhattan. They've been reading the names and then having moments of silence at key timelines when you look at the attack timeline.

31:33This is in a moment of silence about to be observed at the Pentagon, which was struck by American Airlines Flight 77 at 937 a.m. on 9-11. I will carry cash, United States Navy chief of chaplains.

31:55Please join me in a moment of silence as we honor the fallen who at this hour, 25 years ago, lost their lives while serving their nation. We remember the fallen and pray for the families.

32:16Thank you.

32:43Thank you.

33:40Let us pray. Moment of silence of the Pentagon, that giant flag gem that they draped over the building in a downpour this morning, just a remarkable symbol of unity and resilience a quarter century later. I'm really glad that we're making as much of this as possible. You couldn't do as much as you need. And I always think about the work you've done post 9-11 on the reconstruction downtown, of course, the property development. You know, I did a 15th anniversary special for our network. And in the last 10 years, downtown has become, I think, really the locus of young people. I was down here last night, man, I just cannot believe how it is.

34:24People should come here just to be able to see what it is like. The Wall Street is boring as all get out between, say, 930 and 4. But at night, where are all those people from? It has been a significant redevelopment. And it obviously took quite some time, particularly for the World Trade Center site, many years. But that said, yeah, I always remark how coming out of the subway at Wall Street, even when we started the show together, kind of quiet. Now I walk out and I'm she said, everybody's walking their dog. I mean, all there are people walking their dogs. We didn't. That are construction workers.

34:58Right. It's just a completely different. And they're all young people. Why they all have dogs, I don't know. I mean, I first was thinking about moving down here because of working at Goldman. And a guy at Goldman said, no dry cleaning. I said, what do you mean? He said, there's no dry cleaners downtown. I mean, now it's like a dry cleaner. You're going to throw it a stick, you hit a dry cleaner. Jim, kind of 10 to 1 up volume day. This is a very important day. All Dow components are green. You know what was threatening to take the number one Dow spot for the year was Chevron. But today, Cat and Cisco put a little more space between them and it.

35:32but I wouldn't count Mike Worth that. He always has something up his sleeve. But Dell and Hewlett-Packard Enterprise, once again, these are pure data center plays now. People feel them, though they have a lot of other things. You know, the one that has been lagging, that has got a great book of business, is Vertiv. Vertiv has really been going down. I mean, they are the data center play in many ways. They have the most to do intellectual property with data center. That one could be. It's only up three. That could still be good. And then I had Sterling on it last night, which is a company that, SGRL, it's a remarkable company.

36:05It does all the electrical for all these data centers. And what he said to me, Dave, it's very interesting. He said the moratorium, not that important, because what happens is they just put more data centers where they have data centers. And they've already been approved, and that's fine. He said, you know, they'll have 3 ,000 acres, and then they'll add another 3 ,000 acres. Now, you were at that site. How many acres did they have? Many. so they could put up more than one data center. I guess supposedly, yeah, they could over time. I mean, you do need to get permitted, I guess, for the additions.

36:34I'm not sure. Maybe some have these. They claim it's an easier permit. Over time, you can build more on similar sites, right. Like it was with nuclear power. Obviously, you know, power continues to be a key question. But the data center debate, we've talked about this a lot, guys, particularly given the warnings that we've gotten this week, not to mention that latest report from Anthropic yesterday, detail all the ways their LLMs have been used to try to create threats, biological weapons, and on from there. But we've talked about the opposition data centers, not as much perhaps being about the land use or even about water, which is now a very different system than it had been previously, or even power, given how much of it is now what we call behind the meter, meaning they're actually generating their own power.

37:19But it is simply the physical manifestation of this technology that a lot of people, for for good reason are worried about. And now stories as well today that Congress seems to be waking up to the concerns. It's not economic, it's ideological. It's ideological to the point where this is like, we can't, they're a party, the party, the Democratic Party, there's a size of a number of people, the Democratic Party is a political thing. It is. I mean, I would say there are some Republicans as well that are certainly aligned in a different way. The administration is still very much supportive of going fast.

37:58They want to put one in maybe the reflecting pool? And then it comes back to the race, the race between all the models, the race, of course, with China, and how you throttle that at all, even though Sam Altman most recently, Carl, saying that he would be willing to potentially slow things down. Wasn't that interesting? I mean, this hell-bent way to do it is just making—I don't know why. These guys just don't realize. You go put people to work. Make sure small business does well in the areas. Understand. Cover your flags. Think about these things. Because the backlash is going to be different. We're not China where the government can dictate anything.

38:34I think all these people should do that. It's not even that they all do it. Then I think they have a chance of being able to continue to build. If they don't, if they're not more thoughtful, then we're going to have a... Well, but I mean, the larger question as well is if we were to try to slow down, We need to do it in a way that China would also and that we would believe they would. It does become sort of not dissimilar from a nuclear non-proliferation kind of a treaty. But things are moving so quickly. And the models that are already on hand internally that are not being released are so powerful.

39:07I mean, you've seen, Carl, you talked about it the other day with the latest model at OpenAI, the one that hasn't been released, the Astra, being able to solve a math equation that has been out there for a century almost? Well, we were, I mean, people, look, I'm over, obviously. And I remember from 1959 to 1962, all we ever thought of was someone's going to press the button accidentally. But we got to build anyway. And all you did was live in fear that they had the H-bomb and it's going to hit us. And I remember one day I lived next to the Wilco Naval Air Force Base during what the Cuban Missile Crisis.

39:41And I said, Mom, it's really dark outside. And she said, no, Jimmy, those are the planes. And they were our planes going to another Air Force base in Pensacola, in Florida, because we were going to bomb the bejesus out of Cuba. People don't remember what it was like. You thought you were going to die every day because you put your head in that cubby hole every day, and that was going to protect you. The guy at the end of the block had to fall up somewhere. And I was filled with spaghettios. SpaghettiOs. But, you know, I used to tell my peers, when are we going to get a fallout shell? I mean, this is ridiculous.

40:16Where are we going? People don't know what it was like. You may want to consider it again, then. Get yourself prepped. Cormac McCarthy. Get yourself ready, my friend. Yeah. Get yourself ready. Cormac McCarthy. Yes. Yeah, the road. That holds up. The road holds up. The canned peaches. Oh, my. What a book. I really like Cormac McCarthy. That book is. I'm not citing Stephen King. I never do that. But Cormac McCarthy is some writer. Dark. Mark, as we go to break, a little relief in the bond market post-CPI. You got the 10-year back basically to 491. We did top out at 498. Didn't quite get to five even after CPI ran a bit hot on monthly core.

40:53Stay with us. Jim, we kind of talked about your big week next week yesterday. Tell a little bit more. What do you got? Well, Dreamforce is very exciting. I'm serious. That's obviously, I don't want to call it a trade show. It's an extravaganza thrown by Mark Benioff year after year. to get the most people of any of these shows in Salesforce. And two that I want to highlight, I mean, I've got some great people, obviously, but OpenAI is Sarah Fryer, and I think that OpenAI is, wherever OpenAI is, there's conversations that have to be heard. And then Hawk 10 does very little TV. No, none TV. Broadcom.

41:27Broadcom is so in the mix of so many different things. They did not have the quarter people wanted, but they're talking about numbers next year that are gigantic. So don't cap Broadcom out of the conversation. You're off to cybersecurity, Palo Alto cybersecurity. Robin, we all know Vlad. And cybersecurity, obviously, important. But I do think that Sarah Fryer is very much a person of the hour. Yeah, I mentioned at the Goldman conference that I was at earlier in the week, she was mobbed, like, you know, literally like a rock star. I know when. She did not speak. I mean, she spoke publicly there, but didn't do any interviews.

42:02Yeah, I know you did. I know you did. She's one of the greatest. And for obvious reasons, it is one of the most important companies there is, period. And I can't wait. I always find, like David talks about, it's the other conversations. It's the conversations that you're having, whether you're at the dinner with Mark. And I'm trying to sit next to Usher. Maybe, maybe not. I don't know who will put him with. But you get the side conversation, and it's going to be about Databricks and how they're destroying XYZ. No, XYZ is a company. I've got to be careful. That's true. Jim can't wait. I love getting up at 3, especially when I go to bed at 2, which is 11.

42:40Betty up always says that. It's only 11. What are you doing? I said, well, I've got to go to 2. Oh, come on, Jim. Safe travels, Jim. Look forward to it. Thank you. Important week next week. All of that, plus the Fed. As for the markets today, coming off the opening high, still 3 to 1 up volume. Stay with us. In addition to Oracle last night, we got Adobe. Jim, you had some thoughts on how they might put their market cap to work? Yeah, look, I think that they have a new CEO. He's internal. I've been watching this stock, and I've got to tell you, people have been trying to force it down. I mean, remember, Leopold is just one of the kind of hated semi-stocks.

43:11Is he going to play that game again? I don't know. Those stocks pass. This company has firepower. If someone could take their stock, it's a$98 billion company, they can change things. And I think they ought to go after a company, David, that you're familiar with. Really? It's a company called Figma. Oh, I mean, wait. Didn't they try to buy them once before? Yeah, but that was when we had a Justice Department. We had an FTC. Come on, man. Anti-delubing. You're just playing by the old rules. That's true. Although, if I recall, the Figma deal was also opposed by foreign regulators as well. Maybe they're on the take.

43:43I mean, maybe they're equally as confused. Maybe they're on the take. That's what you're about to say. I'm finishing your sentence. I never said that. You didn't. I just didn't. I never said that. But if they were to do it, they probably should hurry up, don't you think? Oh, they have this window of opportunity. And they're worried about Canada, obviously. It's very inexpensive. But yeah, I mean, Figma's now cheaper. And I do not. Yes, David's right. There could be some international meddling and maybe some estate attorney general. You talked to all of them. I don't know. It's hard to imagine they come back after that.

44:11OK, but they can buy so many different companies. They could buy so many. Cash flow from operations,$2.52 billion for the third quarter. So they are still generating a lot of cash. Shorter contracts. But Jim, you have been one of the leading voices saying their model is challenged. Yeah, that's why we're calling for a new company. They can change. Look what Oracle did. They went to medical records. Let's go data center. Why can't they be somebody else? What says they have to forever be all that stuff they jam in? You're Microsoft where you're always taking it. You got like, whoa,$660. No, thank you.

44:45Why can't they be something else? David, I think they're challenged, but they could end up fooling us by becoming another kind of company. The new guy, you can do it. He's not wedded to it. It's typically hard for companies to do. Oracle's done it twice. That's true. That's very true. Founder-led, always important as well. Founder-led. Yeah, that helps. Yeah. And, you know, too much golfing. I've been looking at everybody's handicaps. Really? CEOs, look out. I've been looking at your handicaps. If your handicap is very low, I'm thinking, hey, there are other guys who play. There are other guys who play.

45:19There are other guys who play. There are other guys who play. There are other guys who play. That's worth looking at. Jim, a good weekend and busy week next week for you. Jim Cramer, Mad Money, 6 p.m. Eastern time tonight. You've been listening to the opening bell on CNBC's Squawk on the Street. All opinions expressed by Squawk on the Street participants are solely their opinions and do not reflect the opinions of CNBC or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet, or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion.

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