Industrials Report, NYSE Trading Issues, Raytheon CEO Greg Hayes 1/24/23

Squawk on the Street

CNBC

Business, Investing, News

4.1 • 567 Ratings

🗓️ 24 January 2023

⏱️ 50 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer and David Faber began the show by discussing the quarterly results for industrial giants 3M and GE. 3M shares were under pressure in early trading after missing on earnings; separately, the company announced that it will cut 2,500 jobs. Other names out with reports included Johnson & Johnson, Lockheed Martin, and Union Pacific. After the opening bell, several stocks were halted on the New York Stock Exchange due to an apparent technical issue. Major names impacted included Verizon, Wells Fargo and McDonald’s. To close out the hour, Morgan Brennan joined the desk to participate in an exclusive interview with Raytheon Technologies Chairman & CEO, Greg Hayes. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

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.
0:05.8	Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Kintenea with Jim Kramer and David Faber live at Post 9 of the New York Stock Exchange.
0:12.4	Future is a little wobbly here as we dive into the first batch of industrial Q4 results.
0:18.1	Coming up with the next two hours, we're all over the earnings movers today. We've got
0:21.3	interviews with the CEOs of Raytheon, GE, and Union Pacific, all of their respective results. And
0:28.6	that's where we will begin. A bunch of names, we could start with, say, 3M this morning, Jim.
0:33.3	Well, look, I think a lot of companies are coming in too hot, a lot of stocks. I mean, you take a 3M, and 3M had been weaker, and then it moved up, and now it's giving back that gain.
0:44.8	And it's giving back the gain because when you talk to a CEO, and he basically says, look, we're not satisfied with the progress or performance.
0:52.2	It's difficult for me to be satisfied. They do have some
0:55.7	2,500 global manufacturing role layoff. I don't think 3M, I think 3M is atypical in how bad it is
1:03.4	because organic growth, point four, David, you know, when you do a gap earnings, they're disappointing.
1:10.5	Cash flow was a little bit better, but this is the kind of thing you worry about.
1:15.5	This is the kind of thing that Mike Wilson says, you know, you're going to have to worry
1:20.5	about the earnings, and boom, you have to worry.
1:22.6	Rapid declines in consumer-facing markets accelerated in December.
1:26.7	You know, the guide, I think many investors at least are going to think is one of the key problems here.
1:31.0	They had guided to $8.50 to $9.
1:33.1	After subtracting $0.22 to exit PFS, remember, they're no longer going to be manufacturing PFS.
1:39.2	That's going to, by the way, take a number of years.
1:42.3	But nonetheless, even if you give them credit for those earnings,
1:45.9	it's still about 872 to 922 versus consensus of 1020 in terms of the guide. Not a good guide.
1:53.1	Down margins on inflationary pressure. Organic growth, negative 3%, maybe at top of a flat if you're lucky.
	...

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