Transcripts For CNBC Squawk On The Street 20240712 : compare

Transcripts For CNBC Squawk On The Street 20240712

Major amples we saw a surge in cases for example, in other parts of the country that had not been as hard hit jim, i can go through a list of things this morning that perhaps would give investors pause in a different environment, whether it be beijing, and the recent closure of schools there as they deal with a surge in cases it is only 137 but nonetheless. Flights also there we will get the update from beijing. Layoffs at the likes of at t or hilton quest giving us gooit guidance that still speaks to the weakness of that business. Yet here we are with potentially another rally in store a half hour from now. David, all of those things you just mentioned were things that maybe we expected to happen im looking at 25 pieces of research that i have sent to you in synopsis, the vast majority of them are raising price targets. Why . Because the targets were slashed before we knew that the Federal Reserve was going to back stop all of these companies so the Federal Reserve is saying if you are public and you want to issue debt you are fine now that does not mean that the smaller or Medium Sized Enterprises are going to get anything they have been backed up by the treasury as much as check. That news is not good and it is still down from where we were a week ago but there were so Many Companies that were given up on by analysts. And now you find that those who thought American Airlines was worth 1 or 2 or 4s are wondering why it is worth 20. All the analysts were too negative when you raise a target you get a momentum thats what is happening underneath this market. Right but we have also discussed that length and are sure to come back to it time and again, the divergence between the stock market and what we call i guess the real economy for lack of a better term, jim. Right. That continues. I referenced layoffs, 3,400 from at t 3,400 technician and clerical jobs across the country over the next few weeks and i believe another 1,300 retail jobs at the 250 at t mobility and Cricket Wireless jobs. Hilton, 2,100 jobs hbcc cutting 35,000 jobs over the median term according to reuters, worldwide. United sweetening the exit deal for flight attendants. I dont know the real economy doesnt will be so good. I dont know, david everything is going to sound everything you described is going to raise numbers i think a lot of the companies are using the cover of the pandemic to actually take some actions they would have liked to have take before the actions are very harsh for workers. Very good for shareholders you can justify pretty much anything yet here we are, wide suntrust say they dennys, sequential improvement, dennys being the restaurant chain where you and i can get the grand slam one of my favorites. Sales are minus 40, they were minus 60 before. Tell me how many people you really need to put to work if your same store sales are minus 60 i had mcdonalds the other day they are going to get through this but the competitors, the hamburger joints, the diners, i dont know how they are going to stay in business a lot of them serve alcohol, too, but you are not allowed to go into their places when you see, david n texas, when you go in, what did they think is this did they think they were immune this thing is so easy to get that if you keep talking to me like this, david, i am going to give it to you that is not true. It is so easy to get. When i come to the studio we will make sure to still be 30 feet apart unfortunately i guess if thats the way you want it. It is so easy to get. It is easy to get inside. So easy to get. Unless you gargel the clorox a joke a joke. To your point i guess we are talking about new highs in new cases in arizona, florida, oregon, oklahoma, and texas. All reported record increases in new cases on tuesday new alltime highs again, off of very low levels. Nothing approaching the likes of what we saw in the new york area thankfully these are way, way down, new york, new jersey, connecticut. You spoke with the ceo of mcdonalds yesterday on mad money. Lets listen to what he had to say on the expectations of when business can really get back to what it was. Until we have a vaccine what we have seen in other markets, the consumer is still going to be concerned about safety. They are going to be making kind of this unconscious cost benefit tradeoff. We do need a vaccine certainly our expectation though is that a vaccine is probably you know, call it 12 to 18 months away. Finally someone who makes sense. Can you imagine getting facebook business as usual we have to emphasize that we have to explain theres a man. Hes telling you the truth without a vaccine, we are not going to go back to normal so weve got treasury secretary mnuchin doing what he can. And we have got jay powell doing what he can. But we have covid19 doing what it can do. Unless we defeat this thing with a vaccine there is going to be what a brilliant comment that chris made. He said that theres basically a cost benefit analysis to going out. Thats why i still favor the covid cramer covid index. When we had campbells mark clause on the other day he said we just saw the numbers for the end of may they are dramatically up why . Because the cost benefit analysis of going out is just crummy its not good. And now, people dont want to go out and they think they can get sick the same reason why costcos numbers are up because you have to wear a mask if you go to costco. People feel safer. You may not want a mask i dont like wearing a mask. I think i am going to make another mask i am not kidding i have got a contest to make masks that are better yet i feel like i have got the wear this when i go out to eat but the funny thing is there is nothing you caeat. And airconditioning is a problem. You may want to deny it you talk to wynn, bring Johns Hopkins in and try to figure out how the droplets arent bloep from me to you in your secret, hidden location. No. Right. It is true eating indoors is still going to be an issue even at 50 capacity even though, et cetera happening across the country Outdoor Dining is of course a different matter. How about when you talk about airlines and they always say the air circulation is better than a building absolutely true. But then they always say but if the person is sec next to yick , sorry. Thats why you cant have people next to you. You cant. That you raise an interesting issue, and speaking for example, to the bankers that i talk to during the course of the day. When are they going to be getting back on planes it is one thing to go back into the office, frankly, where a lot of the protocols are starting to be put in place. Most of wall street is not talking about coming back and forth. Some are starting to come back into the buildings fairly soon but really until september in some ways seems to be at least where a lot of peoples thoughts are. We talked about elevator traffic and things of that nature in some of the bigger buildings certainly in new york and other metropolitan areas when you are getting on an air plane is one the big quest we have an ak out from quest they are talking about improved passenger management in 2020 operating revenue is estimated to decrease year over year from 60 to 75 . Unbelievable. They have published their flight schedule through january 4th of 2021. They currently estimate Second Quarter 2020 capacity to decrease in the range of 50 to 60 year over year as gary kelly told us i forget what did he say, 2022 or 23 . It is going to be a while. My daughter teaches english in madrid. Season is over and i want her to come home. David, all i can think of is what is that flight going to be like how is she going to get from madrid to here i know she is going to self quarantine for two weeks but as a father, i worry about my daughter flying from madrid to here. Why . Right. Because what happens if someone is sick who is next to her . And you cant stop it. Yes, i have a wrist band on. It doesnt entitle me to margaritas this is my temperature but it isnt temperature the three days before the temperature is when they nail you. I know. And even then, even then a lot of people arent having a temperature. No. That said your daughter in a demographic where she is probably at very, very little risk thats a safing grace. But the real risk is she would get and it bring it home to you. Shes in quarantine for two weeks. A real quarantine. It is going to be fun. What a world. New zealand had two people come in, and it violated the quarantine again, i go to texas and i say to them, guys, listen to me. Gals, listen to me the protests in front of the alamo you did last week, not a great idea i mean, i want protest, but could you do some distancing when you protest because you are going get it you are going to get it. Yep i dont want that said that said, we are we are looking for a higher open as we watch cases around the world i want to get to eunice yu now in beijing who can update us on the situation in beijing we will get that after the break. Lets take a quick break as i mentioned we are about 20 minutes away from another up open on the morning. Jim gave you a lot of the reasons why. A lot of it is because of the three letters, fed back after this. Its pretty inspiring the way families redefined the word school this year. Its why, at xfinity, were committed to helping kids keep learning through the summer. And help College Students studying at home stay connected through our university program. Were providing affordable Internet Access to low income families through our internet essentials program. And this summer, xfinity is creating a Virtual Summer camp for kids at home all on xfinity x1. Were committed to helping all families stay connected. Learn more at xfinity. Com education. As i mentioned as we wrapped up ourp last block, a program in beijing taking steps to stem a potential resurgence of covid19 cases in that city lets go to eunice yoon. 137 people have been infected but beijing officials have warned that that cluster was detected in its infancy and that they expect the number of confirmed cases to rise. It has sparked fears of a broader lockdown tens of thousands of people here in beijing are coming to Covid Testing Centers like this one. The Chinese Capital raised its alert level after more cases linked to an outbreak at a wholesale food market were detected in nearby provinces authorities mandated that anyone looking to travel out of the city must now get screened for the coronavirus first. All workers associated with the market and residents in the area are banned from leaving. Bus and Ride Sharing Services out of beijing are suspended flights cut by about half. All schools are closed after reopening briefly. Today city officials said students you this prepare for the possibility that classes wont resume until next february the biggest Economic Impact outside of the wholesale market has been on the salmon industry. The origin of the beijing cluser is still unknown but rumored to be because of imported salmon. Salmon has been pulled from store shelves all over the country. Ports are now testing all shipments of meat. The government appears to be wary of shutting everything down again. Most other food stalls and shops are open though sul seellers are cautiou. It does appear that the authorities here want to keep businesses going for example, roads and highways are still open companies as well as factories have not been told to halt work. And then that said, there have been more announcements today by the city of bans of certain events that could be important for business for example, ceremonies, press briefings as well as sale exhibitions. Guys eunice, thank you, eunice yoon in beijing. Jim, of course it is the worlds second largest economy as eunice just said, it is still open we are reopening and not going to close again as the treasury secretary made very clear last week as well impact are the wet markets still open i think that thats what i am concerned about. Yeah. Have they really changed over in the prc they blame foreign salmon . How about the bat market how is the bat market doing . Is that still open mixing bats with foods that they shouldnt mix. I mean, our decision not to close i think is a more sensible one because if you are afraid to go out or if you are in an atrisk group, you can stay at home you can choose to try to find if everybody wore a mask then they could go out, too the aversion to wearing a mask is as i call it the live free or die contingent that doesnt understand that going for the latter and not the former. True. And yeah, you have spared little criticism for china to large it is going to be tough for me a guy named jim cramer became the president of otis. I wish him luck. Not the same one. Lets take a quick break, jim. On the other side we will get your mad dash. Of course we will count everybody down to the opening bell 12 minutes before we get started here we are backing off of some of the numbers we saw earlier but still set up for what will be a significantly higher open. vo at audi, we design cars that exhilarate with versatility, whether on the track, or the everyday drive. Today, that philosophy extends to how we connect with you. We call it, audi at your door. Whether a remote test drive, shopping, tradein, or even service pickup, audi at your door can do this and more at participating dealers. The premium audi dealership experience, on your terms. Audi at your door. Yeah yyeah yeah hey, hey welcome back to squawk on the street time for a mad dash. Oracle reporting earnings this morning, jim how were they . David, i will tell you there is an alternative universe that happens at oracle. You listen to the call the most successful Business People on earth. One of my absolute favorite ceos it sopds like everything is coming up roses, winning business, crushing workday, and they have got tremendous potential to be number three in cloud after amazon web and azure. They never mentioned google cloud. Thomas kerr who used to be at oracle is now at google. It is win, win, win. They got the zoom contract but they missed the numbers. Substantially. And they didnt give you any real hope that things were going to get better. They say it is covid19 head winds. But if you listened to the call you would say i have got to take this stock eventually i think people will they bought back 40 of the stock. They stan there and buy it back. They bought back 361 million shares a total of 19. 2 billion in the last 12 months. So this thing is just a buyback machine. They have issued a lot of debt to buy babb thiks. They bought back 107 million shares for 5. 2 billion this quarter. You are basically selling to oracle if you are buying this stock. I dont like to sell to oracle. Remember the enormous debt deal they did early on in the pandemic. 20. 20 billion 20 billion. I misspoke. They reported ar the bell. The Conference Call already having taken place but they got out there quick in the Capital Markets even as the fed came in to the aid of most borrowers. Somer and ellis are brilliant. But up against Great Companies they are moving to the cloud a. Lot of companies are moving with them but the shot they have taken on the workday i asked for neil to respond because it says they lost this huge deal with goldman because it didnt work and owe oracle got the deal. I think it has to be investigated a little. You have got to be sure that the claims are for real. All right i look forward to hearing from neil through you at least. Thank you. Lets take a quick break, jim. We will have a lot of time on other side as we head to an opening bell as you can see, we are expecting a higher open for all the broader averages announcer the opening bell is brought to you by nuvnne. A leader in income, alternatives, and responsible investing. We have a developing story out of washington this morning the Justice Department set to put forward a plan as soon as today to roll back Legal Protections that on line platforms enjoyed more than two decades, the likes of facebook and others, twitter. The proposals are designed to make Technology Companies be more aggressive in policing harmful conduct and be fairer, more consistent in how and what they take down or what they deem to be objectionable content. Of course this follows President Trumps executive order that sought to weaken broad immunity for facebook, twitter, and the other platforms. But these proposals are just that, jim. And what we are really waiting for here is legislative action because thats actually what they need as well. They would have to be adopted by congress to actually have force. And so it remains somewhat unclear exactly what the point of it all is it really is a question of how many friends does Mark Zuckerberg have in congress . How many Small Businesses have they helped . Are they an ambassador for the small to Mediumsized Enterprises . Thats what they need to do. Is facebook shop going to win over so Many Congress people that they are going to look the other way on free speech or are they going to punish him . You could argue everybody should be regulated for free speech but facebook at one point was not viewed as a place where we got all of our information but there is a lot on the line here in terms of expense and a lot on the line in terms of the soul of the country. Can you just put whatever you want facebook reach as lot of people. You sure couldnt do it in the new york times. No. It is it is an interesting moment for the soul of facebook. It gets back to the idea of what is objectionable to one person may not be to another are you in fact infringing on free speech. At the same time, jim, something we have discussed what about those who openly put up things that are completely and totally untrue is there a responsibility on the part of the platform to police those people or are those who are spreading those lies going to be say, hey, those are my free speech rides my First Amendment rights . I talked to mark and i said why dont you put caveat every for, you are just on your own for these things caveat every for is what you got. I didnt get it is not clear where he stands on this issue other than basically look we dont want t

© 2025 Vimarsana