CVS CEO Shakeup, Netflix Jumps on Q3 Beat, Amex and P&G: Earnings and the Consumer 10/18/24

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 18 October 2024

⏱️ 43 minutes

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Summary

Carl Quintanilla and Jim Cramer led off the show with CVS Health shares tumbling after the company replaced CEO Karen Lynch with long-time executive David Joyner – and cut guidance in wake of rising medical costs. The anchors also discussed Netflix shares surging on better-than-expected third-quarter results and the addition of 5.1 million subscribers. Also in focus: Market reaction to results from American Express and Procter & Gamble, Apple jumps on a bullish report about iPhone 16 sales in China, AWS CEO’s message to employees who don’t want to return to the office, "Not a great company" -- find out which one Cramer is talking about. Squawk on the Street Disclaimer

Transcript

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0:00.0	It's Jim Kramer here. You're listening to the opening bell of CBC's Squawk on the Street. Don't miss a minute of the action. Good Friday morning. Welcome to Squawk on the Street. I'm Carl Kintaniel with Jim Kramer at Post 9 of the New York Stock Exchange. David Faber is the morning. Our free markets mixed, as is the reaction to some corporate results. Netflix, Proctor, Amex, CVS, 10-year yield is backing off a touch after almost reaching
0:22.8	its highs for the month. Our roadmap begins with that shake-up at CVS, the struggling pharmacy
0:27.4	retailer replacing its CEO and cutting its guidance. Netflix shares are jumping, strong subs, adds
0:35.1	to some easing growth worries. And we'll get a read on the consumer.
0:38.6	P&G takes a China hit.
0:40.3	Amex is raising its earnings guidance.
0:43.7	Let's begin, though, with the shakeup at CVS, the drugstore chain naming long-time
0:47.3	executive David Joyner as its new CEO, effective last night, replacing Karen Lynch.
0:51.8	Company's board says it's the right time to make a change.
0:54.8	CVS also cutting guidance for Q3. They cite the continuing increase in medical costs.
1:00.6	And Joyner does come from Caremark. Jim. Yeah, Joyner's 37 years. She's really good.
1:05.3	Notice the PBM side, knows the pharmacy side, knows the health plan side, knows the healthcare
1:09.0	delivery side. I just want to say for a second, I had Karen Lynch one a couple times.
1:14.6	It's a very tough hand.
1:15.6	So I mean, those who, I know Roger Farrow, who's a really good chairman, very independent,
1:21.6	it took a hard look at things, but I think that it was an impossible job. And I thought she did her best. She closed all the underperforming stores.
1:31.3	But the focus was, let's get the stores right.
1:34.3	And it turns out that the real problem is the medical loss ratio.
1:38.3	And we see, by the way, everyone has these problems, but this company is taking action.
1:43.3	I also want to know how much these
1:44.7	acquisitions that they made that involve staffing, you're going to your home or trying to get
1:51.5	things that I know Walmart couldn't do, and I know Walgreens couldn't do, which is involved
	...

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