Earnings Parade, Activism Spotlight: Exclusive With Starboard Value CEO Jeff Smith 10/22/24

Carl Quintanilla (0:00)

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 Tuesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at Post 9 of the New York Stock Exchange. David Faber's at 13D Monitor's Active Passive Investors Summit in New York. Meantime, futures under some pressure amid this global bond sell-off. Ten-year yield briefly pierces 420 Meantime, Q3 earnings rolling in. Got some raised guidance out of GE, RTX, 3M and others. Our roadmap begins with the earnings blitz. We're gonna hit the numbers out of those companies, including Verizon as well and GE Aerospace. NVIDIA inching closer to Apple's market cap, aiming to claim the crown as the world's most valuable company. And later on this hour, Faber's gonna sit down with Starboard's Jeff Smith, talk about his latest moves, including those involving Kenvue and Pfizer. First though, let's begin with this morning's barrage of earnings. Is the headline GM or not?

Jim Cramer (1:03)

I think it might be GE, and I want to take the other side of the trade. GE Aerospace had unbelievably good numbers, Larry Colt delivered once again. I think that people don't understand if there's any slowdown at all. I mean, there was one bit of, because of Boeing, there's some issues. But I think you got to see right through them. Defense was not as strong as I'd like. But down 11, I mean, come on. I mean, this is like an insult to what Larry has built here. I want to take the other side of the trade on that one. Verizon, no, Verizon is just too hard for me. I don't know. I mean, this has now become a serial, let's just sell it, whatever they say. It is hard to find anything that's really glorious today other than 3M, which really, Bill Brown is energizing that company like you can't believe. Beautiful, beautiful quarter. And RTX, I like the RTX Defense and the Aerospace. So we have a mixed bag as opposed to the Futures, which indicate we just have a bad bag.

Carl Quintanilla (2:00)

Which has a lot to do with what bonds have done as we said.

Jim Cramer (2:03)

Yes, it does. Intertrade is coming down here. And then there's these notes, these apples. I mean, oh my God. Now we got the guy down, the guy up, the guy down. Enough, enough. Let's just let the quarter happen already. And then Sherwin-Williams was the absolute real bad. And RTX, I'll take the other side there. I want to take the other side of these negatives. And in honor of David, Jensen Wong speaking in India on the 24th. And that's going to be the first time. It's very, very big.

Don't sell NVIDIA even after that run.

Carl Quintanilla (2:34)

NVIDIA now, I think, 36 times bigger than Intel.

Jim Cramer (2:38)

Well, I mean, they had a better year.

Carl Quintanilla (2:41)

Yes. David, some thoughts. I know you've probably been trying to keep an eye on these earnings as well.

David Faber (2:47)

I have been trying to keep an eye on the earnings, been trying to keep an eye on the presentation from Jeff Smith that you mentioned earlier. Of course, given the press attention that's already been accorded him for positions that Starboard has in both Kenvue and Pfizer, which we will be discussing with him. And you know, Jim, I'm sitting here now in part part of the show, but also listening to you kind of as an audience. What happened to Sherwin-Williams?

Jim Cramer (3:14)

You know, that is, I have been trying to figure out exactly what happened. I will tell you the rap, which is this is why we need a rate cut. This is what it's about. And I'll buy that. I think that Sherwin-Williams is kind of, Pete, the same store sales for the stores weren't that good. Maybe we need a little bit better rate cut, kind of like what the US. Hardline stated. I've referenced this. This is a UBS evidence lab. I know you pay close attention to the evidence lab. They're saying at Home Depot, they did their survey. 51% of respondents reported intention to perform a home improvement project during the upcoming three months. I'm saying Sherwin-Williams might want to buy it off the idea that this evidence lab says you got to go to Home Depot. I like that call. So I'm not nearly as negative. David, the one I want to know, people are taking up Kenvue price target on you, on what's about to occur there. I mean, isn't that a little aggressive?