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tsa . How are you, my friends? I'm just trying to make a little money. My job is not only to entertain you, but also to teach you something. So call 1-800-733-733, tweet me— Jim Cramer. Wall Street is losing the battle for narrative, and that could hurt many stocks. God knows this market has no problem with such endless increases in long-term bond yields.
Today is a real surprise, considering that oil did fall. The situation on the stock market has become very unpleasant, although the fall in oil prices helped us bounce back from the lows. The Dow closed down 132 points. The S&P fell 0.17%. The Nasdaq fell only 0.09%. The rate on the 30-year Treasury bond is the highest in 24 years.
Quite a serious competitor for shares. Although bond prices have recovered from daily lows, as buyers, I think, are expecting weaker economic data. Perhaps we are in for a quick rate cut. Stocks need this. More than 50% of S&P 500 stocks are trading below their 200-day moving average. The worst market condition since March.
The number of S&P 500 stocks that have hit 52-week lows has exceeded the number of highs for nine consecutive days. Only 1% of the index is at its 52-week high. 204 stocks fell 20% from their 52-week highs. In other words, over 40% of S&P stocks are in a “bear” market. And then there's the incredible story of the cancellation of the Oura IPO— that popular health ring that was resubscribed four times.
Not good enough for management, which prefers to wait for a better moment. They blame market conditions. But the Nasdaq 100 is only 1.3% below its all-time high. Could the conditions be better? Okay, we have some slowdown in the strangest places. I love reading the Federal Reserve reports on certain key regions.
The Dallas Fed released a report titled "Growth in Texas Services Activity Halts." Quote: “The income index, a key indicator of the state’s service sector, fell eight points to minus 9, with a reading close to zero indicating no change in activity from the previous month .” End of quote. If things are this bad in Texas , one can only guess how much worse the situation is in the other 49 states.
Today, consumer confidence indicators were released—the worst in over a decade. And the rates still continue to rise . Now I think that could change if oil stays cheap or falls even lower, but I understand that people have been saying this wrongly since the bond sell-off began. When I say we are losing the narrative war, I mean that something has changed in the context of AI and data centers—the biggest growth story of our era.
The market has been holding onto these topics for what seems like an eternity. But now, looking at the seating chart at today's lunch with the president, which includes Jensen Huang from the world's largest company, Elon Musk, the world's richest man, Jeff Bezos, the founder of Amazon, and many other wealthy people, I'm thinking, "Oh no." So who's going to come out and say, " What bunch of big money people are feasting on at the expense of those who lost their jobs because of AI?" Or: "The oligarchs, they are destroying us for the sake of higher earnings per share." A year ago, I would have thought that people gathered here represented the best that we have.
Now the critics, not me, but the critics say, quote, "Here are the people who want to sacrifice your jobs on the altar of higher profits." End of quote. 18 months ago, people would have said that these executives were employing tens of thousands of people building data centers. Now we're thinking, "How much did they raise our electricity prices?
How much water did they spoil? How many cities did they just rip off?" Oh, and of course, there's the worst possible narrative change. Two of the most exciting companies in America, Anthropic and OpenAI, are now openly admitting that their products are not safe for society. We hear that the document that Anthropic is preparing for its potential IPO is filled with dire warnings, such as that Anthropic could cause mass death or the extinction of humanity.
The company could pose, I quote, " existential threats or fundamental destabilization of global systems." End of quote. Wow, I can't wait to get into this . 80 pages of the 261- page document are devoted to risks. Meanwhile, OpenAI is looking to raise $30 billion at a $ 1.4 trillion valuation , about $ 600 billion more than its last round, even as they hold back on their latest iteration, ChatGPT 6 or 6.1, due to the risks it poses to society.
How is this possible? Simply. The culture turned against these people and their products, and the supporters were unprepared for it. They don't know what to say. While there is no empirical evidence that jobs are being lost to AI, it has also not demonstrated any increase in productivity. We know that many leaders are now saying that the existential threat can be stopped through engineering solutions.
Extremely smart people like Jensen Huang, George Kurian from CrowdStrike, Nikesh Arora from Palo Alto Networks, he was with the president today. Todd McKinnon from Okta. They all proposed serious solutions that silence proponents of apocalyptic predictions about AI. It does n't matter, because when the CEO of the most valuable private company, Anthropic, makes it clear that his business could potentially destroy us all, it's hard to fix.
Listen, I'm not a panicker. You know, I'm constructive about AI, but companies need to start telling better stories. Tonight we have Dina Powell McCormick, President of Meta, to show the positive side, and for me it was a real breath of fresh air. Maybe it will work for you too. Meta seeks to reduce electricity rates where it hosts data centers.
She partners with small businesses to help them grow. It offers bonuses to teachers, and they are quite large. She has videos to back up these claims. She challenges all other hyperscalers to do the same. But do they do it? Muse by Meta is probably the best new small business scaling tool I've heard of in years.
We will invite a farmer to share how his business is growing thanks to Meta's Muse product. Will anyone hear this? What about the question of the existential endgame? That we'll all die if we find Anthropic and its agents get out of control? I admit there are risks here, but why not add a little moderation?
Why not say, "Okay, look, I'm going to quote the scene in the Lincoln Tunnel from Stephen King's The Stand." But also to say that we need to slow down to ensure that the product doesn't work against us, and that there are real cybersecurity solutions that could stop that big Hugging Face problem. I am this is like Hugging Face for AI.
The same one that Chamat was talking about, where he seemed to say it wouldn't happen. This wouldn't have happened if he had owned it. Now we have a president who says, "To hell with the fuses, full speed ahead." He believes that self-regulation is enough, even though the private sector's history of self-regulation is not all that stellar.
Think tobacco, opioids, cars, fossil fuels. The president's big contribution today is that he renamed our artificial intelligence to superintelligence. AI becomes SI, morally binding. For some reason I don't think the alarmists will join in on this now . Can you imagine what will happen after the midterm elections in November, in which Democrats have a strong position?
If the Democrats take the House of Representatives, you better get used to hearing that the time of AI oligarchs is over. We may actually see a congressional " witch hunt," which could begin with today's dinner guest list. Listen, we've done this before in this country. We always do it again. Can this narrative still be saved ?
You'll be the judge of your own when you listen to Meta's Dina Powell McCormick and wonder what would happen if the rest of the industry followed her lead. If we lose the narrative, if the war continues, October could be a very difficult month. And a Democratic victory will not make the narrative about AI, excuse me, SI, any better.
Here is the main conclusion. Everything didn't have to be exactly like this. This shouldn't have been a nightmare for the super-rich pulling out their bonds, but it's a new narrative, and it will be hard to break even if rates stop rising because new economic data is finally slowing. Grant, in New Mexico.
Grant. Good afternoon, Mr. Kramer. This is Grant from New Mexico, I am 65 years old , I live comfortably on my military pension and my goal is to earn money to pass on to my children. And now I have some cash that I want to put to work. I opened a position in Capital One earlier this year, and I'm currently considering increasing it or perhaps opening a new position in Bank of New York Mellon.
I also own Goldman Sachs shares and plan to add to that position when they fall into the mid-800s. Thank you. Well, Grant, first of all, thank you for your service, and I think you're doing absolutely the right thing. At 65, leaving money to children is very logical. I like all your ideas. The one that I think has fallen the most and could turn around if we get a bond rally, then maybe anything can happen—is Goldman Sachs.
It has dropped significantly, and I think the company is doing incredibly well. I think David Solomon gave you a four-fold return on total return there , which is what I like to use. Okay, people, AI companies need to come out, they need to own up to everything. They must become better. Otherwise , I think we're in for a tough October if interest rates continue to rise.
Okay, there will be more money tonight. AI has disrupted software stocks, but could consumer stocks be next? I will explain my thesis on how technology can impact the sector, and some damage has already been done. Meta news is taking over the world, as you know, and I was able to see the real impact of this personal AI agent from the inside.
Don't miss my conversation with Meta management. And nuclear power market player BWX Technologies has just unveiled a new long-term strategy. Is this enough to push stocks up, because they were simply crushed. I'll check with .
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