Markets' "Inflation Rally," Delta and PepsiCo Earnings Beats 7/13/23

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.

Carl Quintanilla (0:39)

Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at the New York Stock Exchange. David Faber's in Sun Valley. We'll join us in a moment to talk about that exclusive with Disney's Bob Iger a few moments ago. Meantime, stocks power on as yields fall to some one-month lows. A producer price inflation comes in light, nearly flat year on year. Q2 earnings began and got Pepsi, Delta and more. Our roadmap begins with Disney though, extending Iger's contract through 2026

David got a lot in his exclusive interview. We'll get to all of that. June PPI, as we said, cooler than expected on a monthly and an annual basis.

And earnings in the consumer, Delta and Pepsi, with quarterly beats and both raising guidance.

Let's begin though with Disney and Iger. Jim will talk to David in a second, but ESPN, Linear TV, The Parks, The Strike, Box Office, he got it all.

Jim Cramer (1:28)

Yeah, he did. And to me, between the lines, what I heard is, listen, you may be really worried about how much money we're spending, but we've got partners. We've got people who wanna be in it. You may think that what we've got is an old lineup that's not doing anything, but we got new people who wanna be in. I'm gonna ask David, of course, Apple's such a natural because at the Vision Pro, there was Bob.

I felt Bob was most tremendous when he just said, look, all of these articles you hear about parks not being that good, which is what a lot of people did, the whole like pictures being sent of empty parks, not true. Parks being once again, the edge that they have over Netflix. So I like what I heard. I own it for my travel trust.

I mean, to me, Iger is readdressing a lot of things that we kind of gave up on. Movies that are not working. He's talking about movies that are working. Parks not doing well, really worried about the cost of sports. I feel better about a lot of things.

I didn't really, you know, I also feel better about Bob, the health issue. I didn't know. That was kind of like Elon Musk. I was waiting for him to do a little Princess Bride answer there. But I do like the extension because it seems to me that what Bob's doing is getting the new guy the right hand as opposed to giving him a hand that doesn't even have the Hulu song.

By the way, the Hulu sound very interesting. Well, of course we're involved, Comcast. Yep, here we are. And there was a lot of people worried about the balance sheet. I was, the confidence that Bob showed made me feel better about the balance sheet. I wanted to question about the dividend. Don't have that.

Carl Quintanilla (2:53)

Yep, talked a lot about transformative thinking, the expansive in our thinking. David, I have to imagine you probably feel like Iger broke a little more glass than you might have expected.

David Faber (3:06)

Oh, sorry guys, it's cold here. Yeah.

Jim Cramer (3:10)

If you didn't, you put that short sleeve shirt on yesterday, you threw me off entirely.

David Faber (3:15)

It goes up like 30 degrees over the course of the day.

SPEAKER_5 (3:19)

It was 48 degrees.

David Faber (3:20)

I think it's probably 50 right now. Sorry, but just trying to warm up. Listen, broke a lot of glass.

He certainly didn't make things, he didn't sugar coat things, did he? I mean, in terms of the current state of the linear cable market, for example, of linear networks, and obviously what do we got? We got, I think, a bunch of news, right? It's ESPN, which you guys already quickly hit, but we can certainly talk about in terms of Partner, JV, what they do there, and seems to be timed with when they do take it to a full streaming service. And then ABC, listen, we've known for a long time, Jim. ABC, you know, the O&Os, it's not necessarily core, but just to hear them sort of talk about that, and FX, that GEO, and what they may be thinking as those go along, those are two pretty important moments.