Salesforce Plunges, Nasdaq and Blue Chip Blues, Retail Earnings Barrage 5/30/24

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 30 May 2024

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Carl Quintanilla, Jim Cramer and David Faber led off the show with Salesforce shares tumbling and dragging the Dow sharply lower. The company posted a quarterly revenue miss and issued weaker-than-expected guidance. The anchors reacted to what Salesforce CEO Marc Benioff told Jim Wednesday night on Mad Money. What's next for the stock? On the retail front: Best Buysurges, Foot Locker soars and Kohl's plummets in reaction to earnings news. Also in focus: Q1 GDP growth revised downward, Nasdaq coming off its worst day of May, CNBC reports Nelson Peltz has sold his entire stake in Disney, McDonald's defends its menu prices, Nestle CEO's message on weight-loss drugs. Squawk on the Street Disclaimer

Transcript

Click on a timestamp to play from that location

0:00.0	Market insight and analysis. You're listening to the opening bell of CnBC, Squawk on the Street.
0:05.8	Good Thursday morning. Welcome to Squawk on the Street. I'm Colonel Kingtonia with Jim Kramer and David Faber
0:09.6	Post 9 of the New York Stock Exchange. Dow futures will be stung by Salesforce today, but this
0:14.5	revised Q1 GDP down to 1-3, the lightest in two years, will take bond yields off the boil, 10-year
0:21.3	457.
0:22.5	Our roadmap's going to begin, though, with sales force, weighing on stocks ahead of the open
0:26.0	shares plunging as the company reports weaker than expected revenue and a soft guide.
0:31.2	Plus, we're going to give you a retail roundup.
0:33.0	Best Buy is seeing sluggish electronics demand, coals with a massive miss, and Footlockers saying its turnaround
0:39.5	strategy is showing signs of life. And as well, of course, that takes us to the consumer.
0:44.8	Cruise lines, the latest to turn to discounting, while McDonald's pushes back against reports
0:49.9	of runaway prices. Let's begin with the market's set for a lower open here and Salesforce tumbling pre-market.
0:57.6	Q1 revenue and the current quarter guide does come in below street forecasts,
1:01.5	overshadowing in Irving's beat.
1:03.3	Jim and Mark Benioff did discuss the market reaction last night on Mad Money.
1:08.2	You can't control the stock, but the environment is not so bad. You're not giving me that, look, the environment's gotten weaker, it's gotten tougher in Europe, it's gotten tougher in Asia. I'm not hearing that from you. Jim, you can't control the buying environment. The reality is you're going to have heterogeneous buying environments. It's going to happen. And we're in this post-pandemic
1:28.6	reality where the buying environment has been, and we've talked about this now for a few quarters,
1:33.4	been very measured for enterprise software companies, not just a company like Salesforce, but many
1:38.0	companies. So what are we going to focus on? We're going to focus on improving our cash flow
1:42.8	and our margins.
1:50.1	Jim, we've talked about softness and software all week, but this decline is relatively historic for CRM. Yes, okay, so it's a single-digit growth. Mark was a little more bullish than
1:58.3	his CFO on the call. So I want to just give you some of the points that on the call,
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from CNBC, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of CNBC and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.