Moody’s Downgrades Banks, Pharma Stocks Surge, UPS Cuts Forecast 8/8/23

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 8 August 2023

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer and David Faber began the hour by breaking down Moody’s decision to cut its ratings on 10 U.S. banks, which dragged on the broader markets and the financial sector. On the bright side, pharma names rallied after Eli Lilly reported better than expected profit and revenue. Shares of Novo Nordisk also surged after key trial data showed its drug Wegovy cuts risk of heart attack or stroke by 20%. Also in the mix: UPS cut its margin and revenue forecasts following weak e-commerce demand and the company’s new labor contract. Squawk on the Street Disclaimer

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.
0:04.7	Don't miss a minute of the action.
0:07.7	Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Keatingo, with Jim Kramer, David Faber, Post 9 of the New York Stock Exchange.
0:13.6	Pre-market giving up Monday's bounce, a hefty diet of bearish headlines. China trade data was weak.
0:19.6	Moody's put some banks on review. UPS data dog guidance
0:22.7	also weak 10 year back below four. Our roadmap begins with another downgrade warning. Moody's
0:28.0	cutting ratings of 10 small and mid-sized U.S. banks but put some bigger names on downgrade watch.
0:33.5	Plus, we're going to be focused on pharma. Jim and I were just talking about it.
0:36.9	Eli Lilly, of course, is out with earnings and a beat there. But really, the real news,
0:40.8	Nova Nordisk shares surging. Its trial data showing that its obesity drug Wagovi cuts risk of heart attack or stroke by 20%.
0:49.0	And we got some deal news. Charlie Ergen is going to merge Dish and Echo Star about 15 years after he split him up. We're going to talk to Mr. Ergan and Echo Star's CEO. That'll be in the next hour on his block on the street. Let's start, though, with this dip today, a day after the S&P and Nasdaig broke their four-day losing streak. stocks are back in the red. Financial's, of course, going to be in focus today among some of today's
1:12.6	laggards after Moody's cuts ratings on Tanban. four-day losing streak. Stocks are back in the red. Financial's, of course, going to be in focus
1:11.4	today among some of today's laggards after Moody's cuts ratings on 10 banks put some bigger names
1:16.5	on downgrade watch Jim. They are once again talking about interest rate and asset liability risk.
1:21.9	Well, what I think is incredible is that we just went through the quarters. And with the exception
1:27.0	of, honestly, of key,
1:30.3	the quarters were good. And a lot of them had inflows, that people felt there'd be outflows.
1:36.3	And David, when you see these kinds of downgrades, don't you think late, late, late?
1:42.3	Yes, yes, yes. Good, good, late? Yes, yes, yes.
1:44.7	Good, good, good.
1:46.3	Done, done, done.
1:47.9	Move on, move on, move on.
	...

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