UPS to Cut 12,000 Jobs, GM Surges on Earnings, Apple Vision Pro Reviews 1/30/24

Jim Cramer (0:00)

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.

Sara Eisen (0:14)

Good Tuesday morning, welcome to another hour of Squawk on the Street. I'm Sarah Eisen with Carl Quintanilla, live for you as always from Post 9 of the New York Stock Exchange. David Faber has the morning off. Take a look at stocks, taking a step back here. S&P down a tenth of 1%.

And it's groups like Materials, Financials, and Consumer Discretionary keeping the declines from being worse. They're all higher. What's not, energy is the biggest laggard as far as sectors, real estate, industrials, utilities, all down. Nasdaq Composite down a third of 1%. We're still up week to date, thanks to yesterday's big rallies. I'll just note Tesla's having a little comeback today. NVIDIA and Meta are higher as well, ahead of some big Magnuson 7 earnings this afternoon out of Alphabet and Microsoft. Treasuries continue their rally. We got after the refunding announcement yesterday, came in a little less than expected. We saw a big rally actually. The 10-year note yield remains lower again, just above the 4% level. 30 minutes into the trading session, here are three big movers we're watching.

Shares of UPS dropping, delivering a fourth quarter revenue miss and disappointing guidance. UBS also laying off 12,000 positions as demand remains soft. Shares of JetBlue and Spirit Airlines moving big time. They are now filing for an expedited appeal to that court ruling that blocked their $3.8 billion merger. JetBlue CEO will be on Power Lunch to discuss it later today. Shares of Block moving higher. The FinTech company getting a couple of bullish calls today. BTIG upgrading to buy with an $85 target.

Web Bush upgrades Block to outperform, raises its price target to 90 from 70 And then one more, GM in the green after a top and bottom line beat and strong guidance there. GM CEO Mary Barra is gonna join us in just a few moments to break down the quarter and the outlook.

Carl Quintanilla (1:56)

Mark it here, reacting to some fresh data on the consumer and confidence. Let's get to Rick Santelli. Hey, Rick.

Rick Santelli (2:06)

Look at that chart of interest rates poppin up. Consumer confidence, this is from the conference board. January numbers. Headline expected at 114.8, and that's exactly what we had. And that happens to be the best level since December of 2021 And if we look at the present situation, it's rocketing from 147.2 to 161.3. Expectations, a little more muted.

83.8, which is the best since July. However, there's an asterisk, because last month was revised significantly lower.

85.6 turns into 81.9 to give that 83.8 a comp back to July. Now job openings, labor turnover for December, always two months in arrears. Expecting a number right around 8,750,000. A beat here. This breaks a three-month streak of lower job openings.

9,026,000. 9,026,000. That is the biggest jobs opening number since September. And last month had a revision from 8,790,000 to 8,925,000, which also tends to break that three in a row lower streak. But it doesn't matter. This month popped back above 9,000,000. You see interest rates moving up a bit, a couple of things quickly.

Short covering in front of tomorrow's ultimate two-day Fed meeting completion seems to be going on, especially in two-year, if you look at open interest and Germany, negative GDP. And finally, I find this really important. Not many pay a whole lot of attention S&P Core logic, but their housing price index year over year, not seasonally adjusted, was the best level since DISA 22 That's good news. Sarah, back to you.

Sara Eisen (3:57)

All right, Rick Santelli, thank you. It's the bond market not liking all the good news, especially I think the job openings going above nine because we know that the Federal Reserve pays attention to it as it relates to the tighter labor market and it shows just the availability for workers continues to be strong and the appetite continues to be strong from big corporations. I'll just add to the good news from the IMF this morning. We got the World Economic Outlook.

They update this quarterly and it was actually an upgrade for the world economy from where they were last October, 3.1% growth is what is expected globally now for 2024 Now it's a little bit higher, 0.2% higher than what we got. If you look across the individual economies, India by far is the big grower this year, expecting 6.5% growth. They take up the forecast for China because of some of the stimulus from the government that we've gotten there, 4.6% growth. And in the US, IMF is expecting a healthy 2.1% growth this year, Europe manages to avoid recession according to the IMF and Japan also looks a little better. And I would just add on top of that, Carl, the IMF also expects inflation to come down faster as well. So there's the soft landing and it's not just a US story, it's confirmed globally by IMF.