Big Banks Report, Dow Record High, Delta Flies Lower 01/12/24

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Market Insight and Analysis.

Carl Quintanilla (0:30)

You're listening to the opening bell of CNBC Squawk on the Street.

Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla at Post 9 of the New York Stock Exchange. Cramer's in Kansas City at GEHA Field at Arrowhead Stadium ahead of Saturday night's wild card, which will stream exclusively on Peacock. Faber has the morning off. What a morning. Bank earnings, a joint airstrikes in Yemen, PPI going into a long weekend in Taiwan elections.

Dow futures are being pinched a bit by UNH.

Well, that begins with the bank's noisy quarter. We'll get to JPMorgan, B of A, Wells, Citi, and Blackrock. We are watching oil as the US and UK make these strikes in Yemen. Tesla shares down as it halts some production in Berlin.

And as we said, UNH medical losses have shares down about 4% pre-market. But we begin with Jim in Kansas City where the weather is gonna be a story for you Jim and for Steelers Bills.

Jim Cramer (1:21)

The coldest game in history is certainly gonna happen.

It's already pre-freezing here. Now I will tell you, Carl, this is streamed on Peacock. I did come out here in part because I think that in itself is big news. I don't wanna lose what the narrative is of today with the banks, with the PPI. But I'm thrilled to be here and I'm thrilled that we are presenting the game and I'll be on Saturday doing some pre-game. So yeah, I'm here and on to the show.

Carl Quintanilla (1:52)

It's gonna be fun to watch tomorrow, Jim. So let's dive right in.

Very noisy as we said, even with some revenue misses. Is JPMorgan the clear standout?

Jim Cramer (2:03)

Yes, because you know what? They actually set the tone. The first thing they did was come out with saying net interest income is really terrific. And then that's what we decided is gonna be important. I mean, it's like Jamie Dimon picked a metric and that was the metric. I could hit on a bunch of it, like maybe earnings per share, which would make it so you'd like Wells Fargo.

I could say headcount reduction, which is why you would like Citi.

I could say that Bank of America is doing fine other than the last month of trading. But Jamie Dimon really kind of set the scene and that's why you're seeing good numbers. He was incredibly positive about how much money they're gonna make on the net interest income. And Carl, it's a tour de force called by Jamie. He delivered, nobody else delivered anything near what he did.

Carl Quintanilla (2:47)

Very, very true, net interest income up 18, 19, thick up eight, also a beat, IB up as well, Jim. Although his commentary about the economy being supported by stimulus and government debt, the concerns about Russia, Ukraine, Israel, he calls them profound.

Jim Cramer (3:07)

Look, he's got the dangerous thesis. He's gotta stick by that. He's saying it's one of the most perilous times for the Republic.

I don't think he's gonna lessen that with what's happening in the Red Sea right now.

I know he's going to Davos, which Ukraine's gonna be everybody's mime.

But you know what, Carl, that's his, let's say that his worldview's negative, but his view of the bank is incredibly positive. And look, as a stock person, I mean, I watched Squawk and just was amazed at all the breadth of knowledge they were talking about. But look, I'm constrained by the four walls of what I do. JPMorgan was a great quarterback of America, not so good. Wells Fargo, you have to just take it as with a grain of salt. Charlie Sharpe, CEO, has historically watched the company over-perform, over-promise, I mean, over-promise and then under-deliver. He is trying to under-promise and then he will over-deliver. And Citi is just a black box. Tangible book value is at 86 The stock is so below that. I don't get it. But there's your app. And UNH, yes, it costs a little more to be able to take care of seniors. I get that. I wonder if pickleball is an issue.

Carl Quintanilla (4:08)

Yeah, we're gonna get to UNH later in the show.

Jane Frazier did call the city quarter, quote, very disappointing. They do expect 20, RIF in the medium term. Jim, the revenue miss, even amidst, I mean, you gotta strip out so many things to get to a good adjusted number.