Nike Jumps on CEO Change, FedEx Tumbles, Tim Cook Talks to CNBC As Apple iPhone16 Hits Stores 9/20/24

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 Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber at Post 9 of the New York Stock Exchange. Cramer's at One Market in San Francisco, wrapping up this blockbuster week on the West Coast. Futures mixed as we come off the 39th all time high of the year for the S&P. Bunch of corporate news today. Nike, FedEx, Lunar, Microsoft. FedSpeak resumes today. Harker at 2 p.m. Eastern. Our roadmap begins with that shakeup at Nike. John Donahoe is out, replaced by a long time Nike veteran and shares are rallying ahead of the open.

David Faber (0:35)

Plus FedEx fails to deliver. Shares of the shipping giant tumbling pre-market this after posting a significant decline in profits and cutting its full year guidance. And the AI and data center power surge continues. Constellation Energy is planning to restart part of the Three Mile Island nuclear plant. Why? Well, they want to sell the power to Microsoft.

Carl Quintanilla (0:57)

Let's begin, though, with the changes at the top of Nike and the wake of challenges in China and some heightened competition. The sportswear giant says CEO John Donahoe will retire after nearly five years at the helm. He'll be succeeded by company veteran Elliot Hill, effective October 14 Hill has spent 32 years at Nike, including a stint as president of Consumer and Marketplace. Throughout the month, we've been talking about Donahoe's future at Nike. Take a listen.

David Faber (1:24)

So, you're on the record now calling for Donahoe to go? I don't want to put words in your mouth.

Jim Cramer (1:30)

I'm saying that if you look at that chart, you think that it does have a real Starbucks-like feel before buying it. Okay. There has to be a bit of a revamping. How about a revamp?

David Faber (1:43)

Revamping.

Jim Cramer (1:45)

Yeah.

David Faber (1:45)

Running out of time, one would think, Donahoe.

Jim Cramer (1:48)

He's out of touch by David. He's out of touch. He's out of time. What's happening is, is that the erosion of Nike matches the erosion of Intel. These are companies that right now don't, they've lost their way. What are you, what?

David Faber (2:05)

That's rough, man. That is rough. Isn't this enough to satisfy you?

Carl Quintanilla (2:10)

It's not good.

Jim Cramer (2:11)

Snickers satisfies me. I always like to say, who's next to go? Who's, you know, who's not cutting it? David, I'm getting Nike over and over and over again because they think that a technologist, someone who is a consultant is running the company and they're getting taken to by On, by New Balance, by Adidas and by Vans. It doesn't stop. This is the drumbeat, David Donahoe.

Carl Quintanilla (2:39)

You literally tweeted a picture of you wearing them this week.

Jim Cramer (2:44)

Well, I know, but that was the Air Force One, the special Bob Kraft anniversary, and those can be run with one with FormAware.

Carl Quintanilla (2:53)

Jim, Investor Day is coming up November 19 and some discussion of what they can put together before then.

Jim Cramer (3:00)

Look, they're in trouble. Now, it isn't shocking that they're in trouble because you looked at the stock chart and it says they're in trouble. But there were so many mistakes made by this man that you wanted to figure out, did they think he had some sort of master plan that nobody knew? He didn't. I think that this is a welcome change to bring someone back in, but what they really need to do is try to figure out how to make better shoes, which somehow got lost in the shuffle.

David Faber (3:29)

All I know is if Cramer just changes his tune on me, Carl, and starts to say Faber's got to go, then that's going to be it. That's going to be it. I guess I'll start my exit negotiations immediately.

Jim Cramer (3:42)

Faber's good.

David Faber (3:44)

Okay, good. Thanks, Jim. This is two now, and listen, I know we're overstating it and or any real impact. Obviously, you're reflecting what you're hearing, Jim, when you listen to a montage like the one that we just heard. But it is interesting, of course, at Starbucks, now Nike. I don't know if there's more to come. I do know there's one more name on your list that you continue to go to as a particularly negative performer. I'm not sure a CEO change there is going to help. I don't mean to take us off Nike. Obviously, I'm talking about Intel. But these changes are significant. Seems less clear in your mind, though, that the incoming CEO at Nike is going to have the same effect, perhaps, that you think Brian Nicol will on at Starbucks.