Earnings Parade Fuels Stocks: Coke, Verizon, 3M and GE Beat, RTX CEO Exclusive 10/24/23

SPEAKER_1 (0:00)

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Jim Cramer (0:31)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Jamie Dimon (0:39)

Good Tuesday morning.

Carl Quintanilla (0:40)

Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Pre-market's green as the bulls try to put an end to five stray days of S&P losses.

Yields are stabilizing, which helps, along with some solid earnings and raise guidance from a bunch of old line industrials, 3M, Coke, Verizon and GE. Our roadmap begins with that slew of corporate results. In addition to that, GM, 3M among the names crossing the table, Microsoft and Alphabet, of course, tonight.

David Faber (1:06)

Plus, we're also watching Jamie Dimon. He called out Central Bank saying they've been, quote, 100% dead wrong.

And we're keeping an eye on chip stocks, NVIDIA and AMD reportedly planning to launch an ARM PC chip, perhaps as soon as 2025 That did pressure steers of Intel late in the day yesterday, Carl.

Carl Quintanilla (1:28)

Let's begin with the markets, though, and the industrial earnings parade, Jim. I was trying to think which one of these would interest you the most. I'm guessing GE.

Jim Cramer (1:36)

Yeah, and it is because what happened is that Larry Colt finished the wind and let's say power business much better than I thought. So therefore, the spinoff is gonna look good. There'd always been a concern that maybe that business was just gonna be a dud, that it was never ever going to be a growth business. Instead, it sounds like it's gonna be the ESG business of choice for people. And David, anyone who thought that the, let's say the long on money, short on time travel situation is over and thinks that there isn't great aircraft demand?

Wrong. GE and RTX proved that the demand for planes is probably about as great a secular story out there.

David Faber (2:16)

Yeah, GE Aerospace now expects low 20% organic revenue growth. That's up from the high teens. Free cash flow as well, they say, is going to trend, and this is the quote, even better year over year.

And then company-wide, then you get a kind of a low, what is it, low teens growth of revenue, which is not bad, and you got a lot of estimates that are moving up here.

Jim Cramer (2:36)

And the journey's over in terms of a company that is what it looks like. It's just earnings per share, it's orders, it's terrific. It took Culp a long time by his own admission, but it's clean, the stock deserves to be higher, and let's throw in RTX as part of the aerospace trade. It turns out that RTX does have a pulse.

It is alive and thriving, and that is aerospace and industrial defense business. But aerospace is the start of the day, not just GD.

Carl Quintanilla (3:06)

Accelerated buyback over there, 10% gain. I think we're gonna hear from Hayes this morning.

Jim Cramer (3:11)

Yeah, and one of the things that's great about Greg is that he puts his money where his mouth is. He thought it was a travesty that the stock lost $30 billion in a $3 billion charge, and he's taking advantage of it.

When we speak to him, there's an element of candor to Greg Hayes that I think other companies, even in aerospace, David Benachy, don't really have.

David Faber (3:34)

We've always admired or appreciated his candor and looking forward to speaking to him a bit later in the show as well.

It's not as though they still don't have that engine issue. They do.

Jim Cramer (3:44)

They do, but.

David Faber (3:45)

They're moving through it.

The stock, as you see, of course, got crushed in part on that, but it is now making up for some of that. Not quite back to where it was prior, but certainly a good day seems to be at hand.

Jim Cramer (3:56)

Well, then maybe we can say it's an old line day. I mean, Verizon was a little better.

David Faber (4:01)

Verizon, GE, RTX, Coca-Cola. I mean, all these stocks are going to be up this morning.

Jim Cramer (4:07)

It's like, I don't know, 2006?

David Faber (4:10)

I mean, when's the last time you saw that stock up?