James Gorman to Step Down, Disney Ups the Ante, Foot Locker Shares Drop 5/19/23

Squawk on the Street

CNBC

Business, News, Investing

4.1 • 567 Ratings

🗓️ 19 May 2023

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer and David Faber began the hour with breaking news: Morgan Stanley’s James Gorman said he plans to resign as CEO within the year, setting off a succession race at one of Wall Street’s top firms. Gorman also said he will take on the executive chairman role “for a period of time” after stepping down as CEO. The anchors also hit Disney, scrapping its plans for a new $1B Florida campus amid rising tensions with Governor DeSantis. Also in focus: Foot Locker shares dropped more than 20% at the market open following a big earnings miss. Slow sales at Foot Locker prompted the company to lower its guidance just two months after it was introduced. Squawk on the Street Disclaimer

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.
0:12.7	Good Friday morning. Welcome to Squawk on the Street. I'm Carl Kintanay with Jim Kramer, David Faber,
0:16.6	at Post 9 of the New York Stock Exchange. Heading into the weekend with a boatload of news.
0:20.6	Powell is on deck. Options expiration. We'll be looking for some debt ceiling news maybe on Sunday. Futures holding up here on this best week for the S&P since March. A roadmap begins with rally mode. S&P NASDAQ eyeing the biggest weekly gain, as we said, in several weeks. Big Tech leading the way Apple and Alphabet highest levels in over a year.
0:39.4	Plus Disney ups the ante in that feud with Florida Governor Ron DeSantis.
0:43.7	It is scrapping plans for a new $1 billion Florida campus.
0:49.1	And there are some struggles in retail.
0:51.2	Sure's a foot locker.
0:52.2	They are down sharply this after the company
0:54.4	missed his first quarter numbers and lowered its outlook. We're going to begin, though,
1:00.3	with the news that broke a few moments ago, and that is Morgan Stanley's James Gorman,
1:03.6	planning to step down as CEO and assume an executive chairman role in the next 12 months.
1:08.5	We've been talking during the break guys about sort of the
1:11.2	strategic changes he brought, but also some generational change here in financials.
1:15.1	You know, I think that James Gorman will be known as the man who said, we're not going to
1:19.2	get in trouble with the government anymore. We're going to run a different kind of company.
1:22.9	We're going to run an advisory company. And we're doing this in part because it's more lucrative and in part because
1:29.2	we are not going to have the episodic up and down earnings that we've seen from other firms,
1:35.6	David, including Goldman Sachs. And it has gone very well under Mr. Gorman's leadership. There's
1:40.9	no doubt about it. When you take a look at the performance of the stock versus Goldman Sachs, Morgan Stanley gets a higher multiple, even though it has slightly less in terms of
1:48.9	overall profits. I thought we take a look there. That kind of puts it in perspective, doesn't it?
1:53.6	And it is large deals, of course, whether it was e-trade or Eat in Vance. Yes. But the continued focus on wealth management.
	...

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