Markets After Worst Week of '23, Buffett Slams Buyback Critics, Activism Wins: Union Pacific CEO Out 2/27/23

Squawk on the Street

CNBC

Business, Investing, News

4.1 • 567 Ratings

🗓️ 27 February 2023

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla and Jim Cramer explored markets trying to rebound from the worst week for stocks so far this year. Are investors right to bet on more volatility? The anchors reacted to notes from top strategists: Morgan Stanley's Mike Wilson on what's "critical" for the S&P 500 -- and Goldman Sachs' David Kostin on the stocks that are hedge fund and mutual fund "favorites." Carl and Jim discussed Warren Buffett's letter to Berkshire Hathaway shareholders, including the what the "Oracle of Omaha" wrote about Berkshire's top holdings as well as critics of buybacks ("economic illiterate"). Also in focus: Union Pacific shares rally on news the railroad will replace its CEO in wake of hedge fund pressure, Pfizer reportedly in talks to acquire cancer drug maker Seagen, plus what to expect from a big week of retail earnings including results from Target and Lowe's.

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.
0:22.8	Don't miss a minute of the action. Good Monday morning. Welcome to Squawk on the Street. I'm Carl Kintanah with Jim Kramer. Post 9 of the New York Stock Exchange. David Faber has the morning off. Stocks do begin the week trying to avoid a fourth week lower. Lower yields help today as durables disappoint. Dollar back below 105, busy week for retail and tech earnings.
0:27.9	Our roadmap's going to begin with stocks looking for this bounce after the worst weekly losses of the year.
0:35.8	Buffett, of course, pushing back on buyback critics, saying they are, quote, either an economic illiterate or a silver-tongued demagogue.
0:39.3	And activist success, Union Pacific now looking for a new CEO after a hedge fund presses for change. Let's begin with the markets, though, coming off of
0:45.3	their worst week of the year. Volatility and this so-called fear gauge is in focus. Some CBO data
0:50.2	says that more call options are betting on a rise in the VIX and have changed hands on an
0:54.9	average day this month more than any time since March of 2020. This story is everywhere.
0:59.8	Yeah, I found it somewhat astounding because we've already had a big sell-off. Last week was a very
1:06.0	negative week. We come in with interest going down because of the soft durable goods number. But then we have, look, I always like to refer to Mike Wilson. He's been right. I'd make fun and period of it. But he's been right. And he's just saying, listen, bear market trap. Yeah, I mean, the bull market's not real. And I didn't even know we were in kind of a bull market. And you know, we had, you were so kind enough to be at our conference this weekend.
1:29.7	The overall, this is CNBC Investing Club, yeah.
1:32.7	The ultimate takeaway from that was not yet.
1:35.9	Don't buy yet, don't buy yet.
1:37.8	But there's going to be a moment where you're going to have to buy.
1:40.1	And I don't like the market to be, I want it to finish its downturn.
1:45.6	And it doesn't seem like it has.
1:47.2	You raised the Wilson note.
1:48.0	It's pretty interesting.
1:53.0	He does say that March, high risk for the bear market to resume, next leg lower.
1:54.5	Then he builds this little out.
1:57.0	It says technicals have been good.
2:01.9	Wasn't that interesting that he said when you're really emotional, you have to default to the technical.
	...

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