Fast Food Shake-up, Under Armour’s Federal Probe & Wall Street’s Record Run

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 4 November 2019

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, David Faber & Jim Cramer discuss the executive shake-up at McDonald’s, CEO Steve Easterbrook fired over a relationship with employee. Plus, Under Armour shares tumble on news of a federal probe into its accounting practices, why Jim Cramer calls it a ‘disaster’. And new all-time highs for the Dow, S&P 500 and Nasdaq, does Wall Street’s record rally have more room to run?

Transcript

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0:00.0	Market Insight and Analysis. You're listening to the opening bell of CNBC, Squawk on the Street.
0:08.5	Good Monday morning. Welcome to Squawk on the Street. I'm Carl Cantonea with Jim Kramer, David Faber at the New York Stock Exchange.
0:13.6	Look for new highs at the open, including the Dow's first record high in about four months as trade optimism rains,
0:20.1	despite some turbulent corporate headlines
0:21.7	today, some stock down grades. Europe is up 10-year 176. Our roadmap begins with a shake-up at
0:27.3	McDonald's, firing CEO Steve Easterbrook for violating policy over a relationship with an employee.
0:33.6	Plus, shares of under armor are under a lot of pressure this morning. The athletic apparel
0:37.2	company confirming a federal probe of its accounting practices.
0:41.0	And Wall Street's record rally on the heels of both the S&P and NASDAQ, the Dow, is on track for
0:45.5	new highs at the open.
0:47.6	We'll start, though, with that stunning news from McDonald's.
0:50.0	The company has fired CEO Steve Easterbrook after he spent more than four and a half
0:53.8	years on the job.
0:55.0	McDonald says he violated company policy by having a consensual relationship with an employee.
1:00.2	The new CEO is Chris Kempzinski, who was president of McDonald's USA.
1:04.4	In an email to employees, Easterbrook admitted the relationship violated policy, saying, quote,
1:08.6	this was a mistake.
1:09.8	Given the values of the company, I agree with the board that it is time for me to move on.
1:15.3	Already today, Jim, at least one downgrade.
1:18.0	Piper goes to neutral, says changes of this magnitude tend to be disruptive.
1:22.4	Well, look, I think that that's why, you know, I hate to say this, but the stock was down badly on Friday.
1:26.9	I really like to know a little more about when and how long they've known this. I mean, this is one where it's pretty obvious that the stock has been under a lot of pressure. Some of it was because of Wendy's breakfast. Some was because of them missed domestically, and some of it is, I believe, because of this. Don't know for sure. the new CEO does have good technology exposure, which is something you need.
	...

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