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Squawk on the Street

Tesla Rallies, Q4 GDP at 2.9%, Southwest CEO on Q4 Loss and Holiday Travel Turmoil. 1/26/23

Squawk on the Street

CNBC

Business, Investing, News

4.1567 Ratings

🗓️ 26 January 2023

⏱️ 43 minutes

🧾️ Download transcript

Summary

On a day full of earnings news, Carl Quintanilla and Jim Cramer led off the show with Tesla: Shares up sharply on record quarterly results and CEO Elon Musk's optimism about demand. Is the worst over for the stock? A CEO doubleheader: Southwest Airlines' Bob Jordan on everything from the carrier's fourth-quarter loss to its operational disruptions that resulted in a holiday travel meltdown -- and ServiceNow’s Bill McDermott on his company's earnings and the cloud. Also in focus: Economic growth slows to an annual rate of 2.9% in Q4 but slightly beats estimates, earnings winners and losers, Chevron's $75 billion share buyback program, IBM cutting 3,900 jobs, plus Cramer's message on investing in chip stocks. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

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. Don't miss a minute of the action. Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Kinteneer with Jim Kramer at Post 9 of the New York Stock Exchange. David Faber has the morning off. Future is kind of resilient here in the face of some hot eco-data, whether that's Q4 GDP, Durables, Best Print in nearly three years, or jobless claims.

0:22.6

Ten-year climbs to 352 on a very busy day for earnings as well.

0:25.9

Our roadmap's going to begin with Tesla.

0:28.1

Record quarter shares up more than 27% just this month.

0:32.7

Chevron with a $75 billion share buyback, boosting the dividend.

0:36.8

And Southwest Chief Bob Jordan is going to join us this hour

0:39.3

after the airline posted that $220 million loss

0:43.0

following the holiday service meltdown over there.

0:47.4

Let's begin, though, with the record results for Tesla

0:49.5

and Elon Musk is expressing some optimism about demand.

0:53.1

Here's what he said last night on the call.

0:55.0

Thus far in January, we've seen the strongest orders year to date than ever in our history.

1:03.0

We currently are seeing orders at almost twice the rate of production.

1:09.0

So, I mean, that's hard to say whether that will continue twice

1:12.6

air production, but the orders are high.

1:14.6

And we've actually raised the model at Y price a little bit in response to that.

1:20.6

So we don't, we think demand will be good despite

1:26.6

probably a contraction in the automotive market as a whole.

1:32.6

Share is going to open above 150, which was originally long ago a bear case in Morgan Stanley.

1:38.6

Now they say it's where investors will get interested again.

1:41.2

Well, I think that the marginal price cuts brought in a lot of buyers.

1:45.0

I think that fantastic year.

...

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