Blue Chip Earnings Parade, Exclusive: GM CEO Mary Barra, Dow Rides 11-Day Win Streak 7/25/23

SPEAKER_1 (0:00)

What do you see on the horizon? Uncertainty or opportunity? Whatever you see at PGM, we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. Drawing on deep expertise across the world's public and private markets in pursuit of long-term returns.

Our investments shape tomorrow, today. Pursue your tomorrow with PGM, a leading global asset manager.

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.

David Faber (0:39)

Good Tuesday morning, everybody. Welcome to Squawk on the Street. I'm David Faber. That's Jim Cramer. He thinks he's on ESPN.

It's actually CNBC. Post nine at the New York Stock Exchange.

Jim Cramer (0:50)

You are such a big guy.

David Faber (0:53)

Carl has the morning off, which, of course, you can already tell. Let's get a look at futures this morning. Of course, you heard Becky just talk about it. You know, we'll see.

Dow looks like it may open down, but the NASDAQ is one of the keys, and that does appear to be set for a higher open yet again. Our roadmap this morning, though, starts with blue chip earnings. We got a parade of names such as 3M, GE, Verizon. We'll talk Dan or her. We'll just keep going from there. GM, of course. In fact, speaking of that, we got an exclusive that will be with GM CEO, Mary Barra. That's coming up shortly. The company did raise its full year guidance.

It did increase cost cutting as well.

Quote, we were wrong, Morgan Stanley's Mike Wilson admitting. He may have underestimated.

Jim Cramer (1:38)

And where was that?

David Faber (1:40)

You know, I couldn't even find it. How about page five? Yeah, page five.

Jim Cramer (1:43)

Yeah, otherwise, mostly here we were right.

David Faber (1:45)

Of a note that came out at 4 a.m. But it doesn't matter.

Jim Cramer (1:47)

At the same time, he did admit he was wrong. But he didn't eat crow. He kind of ate sparrow.

All right.

David Faber (1:55)

We'll talk a bit about Mr. Wilson. But let's get to the earnings, because it is a busy day, Jim. And I'll go where you want.

You know, my list, at some point during the show, we'll obviously get to Spotify and GM and 3M and Verizon and Danaher and Raytheon as well.

Jim Cramer (2:12)

I was going to go with GE versus Raytheon. How interesting.

David Faber (2:16)

So let's start there.

Jim Cramer (2:17)

Okay, so we finally got the quarter that you and I expected from Larry Colt when you first went to interview, went to Boston.

David Faber (2:23)

God, that's a long time ago. It is a long time ago. When I first went to interview and when he first took over.

Jim Cramer (2:26)

It hurt a lot of problems.

David Faber (2:27)

So many challenges. Obviously, power being a key one. He started to take the company apart as we knew eventually they would. Healthcare now trades its own and eventually power well.

Jim Cramer (2:35)

Which by the way, I like the quarter, but I own it from a travel just now.

David Faber (2:37)

But it's an aviation company.

Jim Cramer (2:38)

Yes, and here's what happened.

Remember how they make their money.

It's a razor razor blade model. So you sell the engines, then 75% of the revenues per share is maintenance. And they have on fire. They're taking a huge number of engines. The growth is much better than expected.

And then David, here's the real surprise.

David Faber (2:55)

Tell me.

Jim Cramer (2:55)

Onshore wind from Vernova. Very strong.

Onshore wind. That's the spinoff next.

David Faber (3:02)

That's coming in early 24, the spinoff of the power generation business.

Jim Cramer (3:07)

Right, so a lot of people felt that you can't buy this stock until you had a split off with Vernova. I no longer feel that way. However, the stock is up four and the stock's run 25 points. But it is a fabulous story and there were remarkable increases and he's doing amazingly well. The only area that was soft was really natural gas turbines. Let me take that off the table.

Believe it or not, nuclear is going to be an issue, but not anytime soon.

David Faber (3:33)

All right, so record renewable energy orders, they save $8.3 billion. Again, this is them from the press release.

Jim Cramer (3:40)

Right.

David Faber (3:41)

While the stock has had a historic run, it is still, by the way, down some 65% from its all-time highs that we will remember back in 2000 when it had one of the, if not the highest market value of any company and traded at, I think, 45 times earnings. But, Culp's, look, there it is. I mean, there's no denying this move. No denying it.