Big Earnings Week, Tesla vs. Ford, AT&T Extends Stock Slide to 30-Year Lows 7/17/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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Carl Quintanilla (0:31)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla, on the opening bell hour of CNBC Squawk on the Street.

Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber, at post night of the New York Stock Exchange. Futures are a little soft to start the week as this China data disappoints. A lot of news headed our way, though.

Later this week, 60 S&P companies report earnings. Retail sales will get that NDX rebalance on Friday night. Our roadmap begins with the busy week ahead for earnings as the markets come off the best week since March. Futures do point to a bit of a rally pause.

David Faber (1:04)

Plus, we'll have Ford in focus this morning. It's slashing prices on its F-150 Lightning and AT&T is downgraded at Citi.

It's now at pace for its ninth day in the red and trading at lows. It has not seen that stock since 2003

Carl Quintanilla (1:21)

Let's begin with the markets, including that busy week ahead on the earnings front, Jim. We got 11% of the S&P in so far, tracking a 6% beat.

B of A thinks we'll finish the quarter up three, maybe.

Jim Cramer (1:32)

Look, I think that we're seeing a lot of companies that are actually doing much, much better than expected. I love the Wells Fargo Net Interest Income up goes from 10 to 14 I thought JP Morgan's quarter was really one of the tour de force growth stock. I mean, 20% growth. David, interestingly enough, PepsiCo and ConAgra downgraded today. They don't have the growth that the superior banks have.

David Faber (1:54)

Really?

Jim Cramer (1:55)

Yeah, they don't. It's kind of amazing. By the way, JP Morgan, I mean, it's just a class by itself.

It's almost as if it's the Nvidia of the banks.

David Faber (2:06)

You know, interestingly, on a macro level, the commentary we got, we went through it on Friday, but it's worth a run here, I think. You were here. We were all here.

SPEAKER_5 (2:13)

What do you mean?

David Faber (2:14)

You were here on Friday.

Jim Cramer (2:15)

I went here, yeah, but I was really...

David Faber (2:16)

You weren't here late in the day.

Jim Cramer (2:18)

I wasn't in Mad Money. I was only here.

David Faber (2:19)

For us, you were here. That's all that I think about.

Jim Cramer (2:22)

People say, why were you mad?

David Faber (2:24)

I mean, coming back to the consumer, though, just trying to get a sense for things, right? Well, JP Morgan, consumer's in good shape, spending down excess cash. Citi, you're not hearing any alarm bells ringing from me here at all. This is on the call. The US consumer, I think we see the US consumer as resilient. Wells Fargo, overall credit quality strong. The balance sheets remain healthy.

Jim Cramer (2:42)

Right.

David Faber (2:43)

Yeah, they're so good. And you do see this, you know, this Richemont, some of the luxury.

Jim Cramer (2:47)

Oh, not just Richemont. Ferragamo was down, and LVMH.

David Faber (2:52)

Not on China. And the weakness there, which you'd expect sort of, oh, when I saw that, I was like, oh, it's on China. But it's on US looking not great towards the end of the court, of the reported quarter.

Jim Cramer (3:04)

I'm telling you, it's vacation, just about vacation. That's what people are doing. They're not buying. It's not a, it's not a, it's not an era when retail is doing anything other than, Carl, I'm not getting anything bad about Amazon Prime.

Everybody else seems to be, well, let's just say it's second rate. Yeah.

Carl Quintanilla (3:24)

Well, we do know that biggest sales day ever, according to Amazon, last week today, Goldman makes it still their top e-com pick, even though they upgrade Yelp and Chewy.

Jim Cramer (3:33)

Yes. I thought Chewy, they said, look, people are buying things that are non-discretionary. But I can sit through here and say, okay, listen, I've got rebalancing coming for NDX. At the same time, I've got notes of every single company that is being rebalanced is also being price target increased. So I don't know what's going to happen.

Look, I think some of these price target increases are just following like an alphabet, but, or even Morgan Stanley on Apple. At the same time, these are winners and you find yourself hard pressed to sell them.