Intel Tumbles, Cramer: Kick Tesla Out of the Magnificent 7, Inflation Watch and the Fed. 01/26/24

Squawk on the Street

CNBC

Business, Investing, News

4.1 • 567 Ratings

🗓️ 26 January 2024

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer and David Faber drilled down heavily on tech: Intel tumbles and dragsthe chip sector lower after issuing disappointing sales guidance. Record closing highs for Microsoft, Alphabet and Meta. Cramer said it's time to boot Tesla from the Magnificent 7 after the stock's worst daily performance since 2020 and poor 2024 start. Also in focus: Market reaction to Core PCE data ahead of next week's Fed meeting, American Express surges while Visa falls, JetBlue warns its merger deal with Spirit Airlines may be terminated, layoffs at Salesforce, Levi Strauss and Paramount. Squawk on the Street Disclaimer

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0:00.0	Market Insight and Analysis. You're listening to the opening bell of CNBC, Squawk on the Street.
0:05.7	Good Friday morning. Welcome to Squawk on the Street. I'm Carl Kintenea with Jim Kramer, David Faber, post-night of the New York Stock Exchange. We do close out a powerful week today, five straight record highs for the S&P. And today, Core PCE comes in a bit light, two nine year-on-year, lowest in almost three years, even as personal spending beats.
0:22.8	Our roadmap, though, will begin with Intel.
0:24.5	Shares a ton of... PCE comes in a bit light, two nine year on year, lowest in almost three years, even as personal
0:21.4	spending beats.
0:22.6	Our roadmap, though, will begin with Intel.
0:24.6	Shares are tumbling after its sales forecast does disappoint.
0:27.6	Plus, bye-bye, Magnificent Seven, my Jim is now calling it a super six-pack.
0:33.6	And inflation in the U.S. consumer, both Visa and Amex, say the consumer remains strong as the latest inflation gauge shows the rate of price increases cooled. This as last year came to a close.
0:45.9	We're going to begin with the Chips Rally taking a bit of a detour this morning. Intel is dragging the sector lower after reducing their sales guidance for the current quarter that overshadows
0:54.3	a Q4 beat. Company cites a number of headwinds, including a tough market for programmable
0:58.7	chips, weaker sales and autonomous driving. Jim, your point seems to be it's not really the race
1:04.7	that matters here. You know, they left out and AMD is clockiness. Now this was one of those quarters. There's a guy who's the CFOs, named is clocking us. Now, this was one of those quarters.
1:12.8	There's a guy who's the CFOs.
1:14.3	His name is David Zinzer.
1:15.7	And that him, he's from total heavyweight from Micron.
1:18.8	And he had to lower the boom and talk about margins being in 44%.
1:23.2	David, there were people who were looking for margins to be 60%.
1:26.9	Now, you know, other than Humana, which is like, you know, the worst I've seen a long time, this was quite shocking.
1:33.3	It was one of those things where I was waiting for someone on the Q&A to say, look, I want to be sure, David, you didn't say 44, did you?
1:41.3	I mean, you didn't do that, 44, 45, 46. Is there any give there?
1:46.1	It's extraordinary. I mean, I just don't know how. They didn't just say, you know what, because some of the analysts applied.
	...

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