Squawk on the Street (1/7/26) - Detailed Episode Summary

Main Theme & Purpose

This episode of CNBC’s "Squawk on the Street" (January 7, 2026) covers a celebratory market morning as the S&P 500 and Dow hit record highs. Hosts Carl Quintanilla, Jim Cramer, and David Faber unpack the factors driving the rally, discuss Boeing’s landmark jet order from Alaska Airlines, analyze the ongoing Warner Brothers Discovery/Paramount/Netflix merger saga, and break down hot and undervalued sectors as well as geopolitical energy news. Throughout, there are insights on AI in finance, potential market cycles, and notable interviews with influential CEOs.

Key Discussion Points and Insights

1. Record Markets & Economic Backdrop

[01:00–01:37]

• The S&P 500 and Dow hit new highs, with the Dow nearing 50,000.
• Macro drivers: stable employment figures (ADP at 41k), 10-year Treasury down to 4.12%.
• Hosts stress "plenty to monitor today" in geopolitics (Venezuela, Greenland oil) and upcoming labor data.

Notable Quote (Jim Cramer, 01:11):
"Short supply and high demand equals higher price in this market. Some of these stocks have had parabolic moves…"

2. Alaska Air’s $17 Billion Boeing Jet Order

[02:08–05:01]

• Alaska Airlines placed a landmark order: 105 Boeing 737 Max 10s and 5 Boeing 787 Dreamliners, worth about $17 billion (list price; typically not paid).
• This could mark the first year Boeing outsells Airbus since 2018.
• The deal is a remarkable turnaround: CEO Ben Minicucci was once publicly furious after the Boeing door plug blowout two years ago but now returns with a huge purchase.

Notable Quote (Phil LeBeau, 02:17):
"They’re going to be spending, at list price value, approximately $17 billion on another 110 Boeing airplanes… it’s almost two years to the day since Ben Minicucci was furious with Boeing."

[05:01–05:11]

• Boeing is the third-best Dow name YTD.
• Orders for large aircraft remain in tight supply into 2030.

3. Tech Stock Dynamics & Semiconductor Cycle

[06:08–10:56]

• Discussion shifts to hot tech names like Nvidia, Western Digital, and Sandisk, with Cramer noting the semiconductor "supercycle" echoing the Micron-driven booms of the mid-90s.
• Concerns about "parabolic moves" and warnings for latecomers.
• Memory and lower-end chips are doing well; Nvidia is flat YTD.

Notable Quote (Jim Cramer, 09:09):
"It’s the best S&P name of the year… I owned 5% of Western Digital. The demand is so much stronger and pricing is so firm that you have to raise numbers, endlessly."

• Reminder of past "supercycles" (coal, fracking, sand): "Be very careful."

4. What’s Still Inexpensive – Hunt for Value

[10:59–13:00]

• Cramer views non-data center industrials and select banks, health care, and retail as attractively valued with historically low multiples.
• Anticipates rate cuts with a new Fed chair and notes upgrades for names like Bridge Generale and Wayfair.
• Stresses looking for ignored/underappreciated stocks (e.g., Kraft Heinz, Colgate, Hershey, McDonald's), but worries about being late to momentum names.

Notable Quote (Cramer, 11:58):
"I’m looking for stuff that hasn’t moved... the non-GUI consumer packaged goods stocks are at historic lows. They’re very intriguing to me."

5. Warner Brothers Discovery Rejects Paramount’s Offer (Media Merger Saga)

[16:23–23:37]

• WBD’s board rejected Paramount’s latest $30/share all-cash buyout, spurning even Larry Ellison’s personal $40.4 billion equity guarantee.
• WBD prefers its Netflix merger agreement, citing concerns about Paramount’s high leverage and the risk to WBD’s business during the complex 15-18 month closing period.
• WBD chair Sam Depiaza (18:30) insists "there are paths" but demands certainty Paramount can close, especially as media businesses face stress.
• Paramount may ramp up activism or even litigation; large hedge funds (Pentwater) will continue to push for Paramount.
• Proxy advisors and the influence of index funds discussed—could AI change merger analysis?

Notable Quote (Sam Depiaza, WBD Chair, 18:48):
"We have a compelling offer from Netflix... but the question they [Paramount] have to deal with is how can they give us certainty that they will close?"

Faber (21:00):
"It does raise a lot of questions... they do seem to be saying that they want Larry Ellison to step up and guarantee the entire thing, not just the equity financing but the debt as well..."

6. AI and Finance: Hype and Reality

[06:27–07:59] and [23:10–24:17]

• Gemini, ChatGPT, Grok, and perplexity: Cramer shares cautionary tales about AI giving faulty information live on air.
• “Still not strong enough to be used on Squawk," says Cramer (07:19).
• Speculation on how J.P. Morgan’s proxy analysis AI would rule on the Paramount/WBD/Netflix mergers—but skepticism remains on AI’s real utility.

Notable Quote (Cramer, 07:19):
"I don't like that it still can't be used on our show. It's too dicey. It isn't strong enough to be used on Squawk."

7. Energy: U.S.–Venezuela Oil Deal & Geopolitics

[37:45–44:57, esp. 39:42–43:35]

• U.S. agrees to buy 30–50 million barrels (possibly more, indefinitely) of Venezuelan oil as part of relaxed sanctions—a way to influence both oil flows and geopolitics.
• Logistics involve rerouting Venezuelan sanctioned oil tankers to U.S. refineries.
• This is only a fraction of U.S. daily needs, and refining heavy Venezuelan oil is costly.
• Benefits for select refiners (e.g., Valero), but Cramer urges caution—structural issues in Venezuela’s industry limit upside.

Notable Quote (Brian Sullivan, 39:42):
"We will send [Venezuelan crude] to, say, a Valero or Phillips 66... sell that back into the marketplace. The money [will be] kept across U.S. banks, then at some point in the future be sent back to Venezuela..."

Cramer (43:52):
"If you think we're going to get a lot of oil out of Venezuela, they don't have any refining capacity. It's going to cost a fortune. And it's all upstream and they're not going to be able to... they don't know how to do it anymore."

8. Momentum vs. Value: Market Cautions & Opportunities

[25:50–30:18]

• Cramer returns repeatedly to the idea of finding value—what’s "hate" and "inexpensive" (e.g., Lennar, PepsiCo, Kraft-Heinz, Comcast).
• Warns against chasing parabolic moves or market "hot stocks" late in the cycle.
• IPO pipeline: surge in large-cap IPOs (SpaceX, Databricks, OpenAI, Anthropic) could flood the market with supply, making investors reallocate and causing volatility.

Notable Quote (Cramer, 27:53): "I think the re-ups are going to do better. I feel better about a Costco... but in the end I come back and I say, some parts of this market are so hot, and I don’t want to come in on day four and start buying them, and some of the others are so cold."

9. Notable Stock and Sector Commentary

• Amazon: Still a juggernaut, Amazon Web Services expected to accelerate; Bank of America calls it a top idea for 2026 ([35:38]).
• Apple: Tough act to follow post-iPhone 17. Down ~4% while Amazon up 5% ([34:28]).
• Sandisk & Western Digital: Sandisk, the "new chip darling," but Cramer views it as less sophisticated than next-gen semi names ([36:34–37:18]).
• CrowdStrike: Cramer’s "stop trading" pick for growth and resilience against cyberattacks ([46:46–48:07]).

Notable Quotes & Memorable Moments (with Timestamps)

• Jim Cramer (on Boeing/Alaska Air), [02:08]:
  • "They're going to be spending list price value approximately $17 billion on another 110 Boeing airplanes. Don’t want to miss that interview guys."
• Jim Cramer (on AI reality), [07:19]:
  • "I found an error that was so bad that it apologized profusely. I don't like that it still can't be used on our show. It's too dicey."
• Phil LeBeau (on Alaska Air order), [02:20]:
  • "It's for expanding internationally... this is crucial to their future."
• David Faber (on WBD/Paramount drama), [19:41]:
  • "It is a... interesting defense and it does raise a lot of questions. Guys. They do seem to be saying that they want Larry Ellison to step up and guarantee the entire thing, not just the equity financing, but the debt as well..."
• Brian Sullivan (on Venezuela deal), [39:42]:
  • "The US government is going to take 30 to 50 million barrels of oil to start, then add more down the road... send that to a Valero or Phillips 66... then sell that back into the marketplace."
• Jim Cramer (on valuation opportunities), [11:58]:
  • "I'm looking for stuff that hasn't moved... the non-GUI consumer packaged good stocks are at historic lows. They're very intriguing to me."
• Jim Cramer (on market risk), [17:17]:
  • "I became much more Jeffersonian and Gandhi. I try to be a little more level headed."

Important Timestamps by Segment

• Markets & Macro Trends: Start – [01:37]
• Alaska Airlines/Boeing Mega-Order: [02:08–05:11]
• Tech & Chip Cycle (Nvidia, Sandisk, WDC, AI): [06:08–10:56], [36:34–37:18]
• Discussion of Value Sectors (Banks, Health Care, Retail, Industrials, CPG): [10:59–13:00], [25:50–30:18]
• WBD/Paramount/Netflix Media Deal Talks: [16:23–23:37]
• AI in Markets/Proxy Voting: [07:19], [23:10–24:17]
• Geopolitics, Venezuela Oil Deal: [37:45–44:57]
• Stock Highlights (Amazon, Apple, CrowdStrike): [34:28–37:18], [46:46–48:07]

Conclusion

The January 7, 2026 episode is rich with real-time analysis on market exuberance, major industry moves, and the hunt for underappreciated opportunity as seasoned investors weigh hype against fundamentals. The show features in-depth discussion around value investing, the mechanics of mega-mergers (WBD–Paramount–Netflix), and acute skepticism toward AI’s current application in markets. Jim Cramer and co-hosts deliver both caution and targeted optimism for the year ahead.

For those who missed the episode, this summary distills the key themes, debates, and actionable insights—while capturing the hosts’ characteristic wit and candor.