Exclusive With Dwayne Johnson and TKO CEO Ari Emanuel, Market History, Earnings Parade. 01/23/24

David Faber (0:00)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (0:06)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber, Post 9 of the New York Stock Exchange. Pre-market's trying to get some traction as this early round of industrial Q4 earnings have either revenue or guidance on the light side. Procter 3MGE, of course, and Netflix reports tonight. Our roadmap begins with the market's historic run, including the Dow's first close above 38K.

David Faber (0:27)

Speaking of the blue chips, 3M, J&J, Verizon, and Procter and Gamble are all leading today's earnings parade. We've got plenty of them. We're going to break down the winners and the losers.

Also, I had China said to be weighing measures to prop up its sagging stock markets. If you haven't watched the Shanghai Composite already down about 7 percent this year, but is rebounding a bit. Propped up.

Jim Cramer (0:49)

Why don't you just take advantage of the bargains that are being offered by people who are selling.

David Faber (0:53)

There you go.

Jim Cramer (0:54)

Why don't you get the PCR language? What do you come with? Some sort of like right-wing description?

David Faber (0:58)

I'll make sure to check in with my communist handlers next time.

Jim Cramer (1:01)

Now you're talking, Jack Ma.

Carl Quintanilla (1:03)

We're going to get to all the earnings movers in a moment. First though, as Becky said, coming up this hour, actor, producer, entrepreneur, Dwayne Johnson is with us. He's set to ring the opening bell after being appointed to the board of WWE and UFC parent, TKO. He'll join us live this hour along with TKO CEO Ari Emanuel. There's a lot of news in here. David, Netflix is a big part of it.

David Faber (1:25)

That's the biggest part of it by far. That's the reason the stock is up so dramatically at TKO this morning. That's also going to have an impact, as you might imagine, on Endeavor, which owns, remember, a majority stake in TKO. But this Netflix deal, according to filings again, over 5 billion over 10 years, that's a number, guys, that was in excess of what many investors were anticipating. Of course, for Netflix, earnings of which we're not far from getting, it's an interesting move as well.

Live events, which they have had very few of, but it certainly will raise the prospect yet again that, are they going to get deeper into sports? This sort of falls in between sports and entertainment.

It's both, but will they get into live sports anymore?

Jim Cramer (2:13)

Look, I know from talking to Strauss Selenik, who's got the video games for WWE, this is huge. This is huge, and he's never accused me of being a snot because I don't go to Long Island where I see it, but he does remind me that the number of people who love this sport is so in excess of what Wall Street thinks it is, that I've conceded that I am a bit of a lacking in knowledge. I don't want to call myself a snot, because he says, listen, let's go to a guy, it sounds like it's interesting, but it's rabid.

The people are rabid.

David Faber (2:48)

And the fan base is an interesting one, perhaps for Netflix as well.

And again, Carl, it's outside the US as well, that there are a lot of rights to come along with this. So an interesting move from Netflix, and as we said, the dollar numbers do seem to be in excess of what had been anticipated for this renewal of Raw.

Carl Quintanilla (3:05)

We'll talk about what it means for entertainment, the cable bundle. Of course, Oscar noms are out this morning as well, but a bunch of earnings movers to get to today, including results from Industrial Giants, 3M, RTX, GE. We got United in there too, Jim. What strikes you as the most interesting this morning?

Jim Cramer (3:19)

I actually thought the Procter & Gamble margins were incredible, and I've been waiting for this to happen. I'm waiting for the margin explosion, and we did get it. I mean, if you remember the previous call, they were talking about how the dollar's going to so offset the margin expansion that you wouldn't even notice it. Not true.

Now, the other side is that, well, I don't know what happened to beauty. I mean, people just don't want to be beautiful anymore, is what you look at it, but they want to be beauty with using elf, because that does well. But I do think that the gross margins have been something I've been disappointed in. We've got six trade quarters of them beating the street. I think people are going to start noticing, you know what, Procter's really well run and they're taking care of business.