The Reopening Trade and the Delta Variant Effect, "Three-Day Corrections," Southwest Airlines CEO on Quarterly Results and Travel Demand, Dow CEO on Earnings and Supply Constraints, Musk Pulls for "Bitcoin to Succeed," and President Biden's Tech Perspective: What Salesforce CEO Marc Benioff Is Saying About It

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 22 July 2021

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Jim Cramer and Scott Wapner explored the recent market moves, the concept of the "three-day correction" and why in Jim's view, the S&P 500 is "done being slammed." Cramer also shared his perspective on the market coming to grips with the spread of the Delta Variant and the slowdown in COVID vaccinations, saying that unlike the herd immunity achieved following the pandemic of 1918-19, "we're going to have a brutal form of herd immunity and it's going to happen, as Dr. (Scott) Gottlieb said, in the next few months." The reopening trade in focus as airline stocks fall despite news of stronger-than-expected quarterly revenue from Southwest and American Airlines. Southwest Chairman & CEO Gary Kelly appeared on the program to discuss his company's quarter, the rebound in travel demand and navigating a labor shortage. The anchors also interviewed Dow CEO Jim Fitterling: The Dow component posting better-than-expected quarterly results and issuing upbeat guidance as it sees global economies improving in the second half of 2021. Also in focus: Elon Musk telling a crypto conference that he "would like to see Bitcoin succeed" and that Tesla would "most likely" accept Bitcoin for vehicle payments, Salesforce CEO Marc Benioff's comments to CNBC in reaction to what President Biden is saying about the tech industry, the road ahead for FAANG + Microsoft, the recent run-up in stay-at-home stocks, China reportedly weighing serious penalties for Didi just three weeks after its U.S. public debut, chip stocks and why Jim slammed Texas Instruments' handling of its earnings call as "ill-advised," and Goldman Sachs slaps Williams-Sonoma with a "sell" rating. 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	Market Insight and Analysis.
0:01.8	You're listening to the opening bell of CNBC Squawk on the Street.
0:13.9	Good morning.
0:14.7	Welcome to Squawk on the Street.
0:15.7	I'm Scott Wapner with Jim Kramer at the New York Stock Exchange.
0:18.2	Carl and David have the morning off.
0:20.2	Let's take a look at futures this morning, how we're going to set up for the trading day on Wall Street. Mixed picture right now. S&P would open negative by a few points. Dow down 52. Nasdaq would be higher. Our roadmap starts with corporate earnings and the COVID recovery. AT&T, Dow, CSX, among the names reporting this morning.
0:40.3	We're going to break down all of the results. Plus, American and Southwest posting quarterly
0:44.8	profits, boosted by a surge and travel demand. We're going to talk with Southwest CEO Gary Kelly
0:50.1	later on in the hour and shares of Chinese ride-hailing giant D-D under pressure once again.
0:56.1	Beijing reportedly considering a slew of new penalties, which could include a record fine
1:01.0	or even perhaps a D-listing. Let's talk about though, Jim. You saw where the futures are,
1:06.3	sort of where we are. I suppose the obvious question is, so the correction's over? That was it. That's as deep
1:13.5	as we get. And now it's about building back up. That would not be unusual for 2021. My friend
1:20.7	Carolyn Barode does Fibonacci work, which actually does work, but just showed you that we've had
1:26.0	six three-day corrections so far. And they're all
1:29.5	the same. They're almost exactly the same. And you had to buy it. It seemed odd to buy it.
1:36.0	It seemed ugly. But they've all been three days. So it certainly would be in keeping.
1:43.3	Sometimes I struggle to try to figure out why you can rally.
1:47.1	But you and I were kicking around a bit of a thesis that is difficult to talk about and sat.
1:54.3	But what I think the market might be predicting here to some way is a 1918,
1:58.7	and to the pandemic. but in a way where you either
	...

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