Raphael Stevens

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CNBC’s Jim Cramer on Tuesday said that while there are three economic and geopolitical issues currently roiling the market, only one needs to resolve for the market to bottom.
“I think we need to start preparing ourselves for the possibility that something may actually go right. That’s been the usual trajectory of these horrifying sell-offs,” the “Mad Money” host said.

CNBC’s Jim Cramer on Tuesday said that while there are three economic and geopolitical issues currently roiling the market, only one needs to resolve for the market to bottom.
“There are three culprits behind our decline: The [Federal Reserve], Russia and China. Any one of them could put an end to this meltdown,” the “Mad Money” host said.

Cramer’s comment referred to the Fed’s plan to initiate several interest rate hikes this year and tighten its balance sheet to control soaring inflation, the Russia-Ukraine war and China’s Covid-related lockdowns.
“We’ve been worrying about them for weeks or months at this point, and I think we need to start preparing ourselves for the possibility that something may actually go right. That’s been the usual trajectory of these horrifying sell-offs,” he added.

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The S&P 500 fell 2.8% on Tuesday while the Nasdaq Composite tumbled 3.95%. The Dow Jones Industrial Average dropped 2.4%.
“I never want to be sanguine about a sell-off, especially this one. The damage is severe, especially in the technology stocks, and there are real reasons for the fear. But … you have no idea whether we could have a snapback,” Cramer said.
He added that even if all three of the issues he highlighted don’t resolve soon, there are benefits to being ready if even one or two of the problems settle.

“If one of them gets solved, we might find a bottom worth testing a month from now. … If two get solved, we’re going to get a massive rally,” he said.

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CNBC’s Jim Cramer said Tuesday that the market will likely move sideways instead of experiencing a monster rally when it recovers, leaning on analysis from DeCarley Trading market strategist Carley Garner.
“The charts, as interpreted by Carley Garner, suggest that the near-term pain might soon be over, but you can’t expect us to go back into turbo-charged rally mode,” the “Mad Money” host said.

CNBC’s Jim Cramer said Tuesday that the market will likely move sideways instead of experiencing a monster rally when it recovers, leaning on analysis from DeCarley Trading market strategist Carley Garner.
“The charts, as interpreted by Carley Garner, suggest that the near-term pain might soon be over, but you can’t expect us to go back into turbo-charged rally mode. Instead, she expects a long period of sideways consolidation as we work off the froth created in 2020 and 2021,” the “Mad Money” host said.

He highlighted two important facts to remember when considering the current market:

We are currently at the heart of earnings season. Garner believes “declining markets often find support from quarterly earnings, especially when the seasonal trends are on your side, which they are supposed to be now,” according to Cramer.
Commodity prices have moderated and the bond market shows some signs of stability. Garner’s “not predicting blue skies from now on, but she at least believes this market’s headed for a holding pattern where we could see some surprising strength,” Cramer said.

To support his interpretation of Garner’s chart analysis, Cramer first showed the daily chart of the CBOE Volatility Index, also known as a fear gauge, going back to 2020.

Arrows pointing outwards

“What the VIX directly measures is how urgently traders are buying put options on the S&P 500 to hedge their positions. … Because the VIX and the S&P 500 tend to move in opposite directions, you can expect a peak in the volatility index is good news for the stock market,” Cramer said.
He said that Garner sees the VIX making a head-and-shoulders formation, which is a reliable pattern showing signs of a potential peak.
“While the VIX is currently over 30, as long as it doesn’t break 35 and start again — completing the head-and-shoulders pattern — Garner sees it heading much lower, perhaps back down to the teens. Again, that would be hugely bullish for the market because when the VIX goes down, the S&P almost always goes up,” Cramer said.

Cramer then reviewed the Nasdaq 100’s monthly chart. “This is … the worst start for these stocks since 2008,” he said.

Arrows pointing outwards

The index has pulled back significantly over the last five months, but the current correction is still small compared to the 20-month-long rally from March 2020, according to Cramer.
“Let’s put it this way: From the bottom in 2009 to the peak in 2020, the Nasdaq 100 rallied 7,000 points. … If the index had stuck to its old uptrend, where would it be? Garner points out that it would probably be around 8,000 points higher, not 13,000,” he said.
“While she doesn’t expect to see a sell-off of that magnitude, she can’t completely rule it out either,” he added.
Zooming in on the Nasdaq 100 daily chart shows that the index went below a trendline going back to the lows of March 2021, Cramer said.

Arrows pointing outwards

“Unfortunately it broke down below that trendline just today. To Garner … we are now at a make-or-break moment,” Cramer said. “If it stays stuck below this key support line … the next floor is 12,500. And if we do get that kind of pullback, though, she thinks it would be an attractive opportunity,” he added.
Lastly, Cramer took a look at the daily chart of the S&P 500.

Arrows pointing outwards

“According to Garner, Monday’s daily price bar was a textbook key reversal pattern: The market opened sharply lower and ultimately closed higher. … It’s a coin toss whether or not this reversal pattern the other day will mean anything,” Cramer said.
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Chipotle Mexican Grill’s first-quarter earnings and revenue topped Wall Street’s estimates.
The company’s restaurant operating margins shrank as it paid more for beef, avocados, paper and labor.
Same-store sales climbed 9% in the quarter, beating StreetAccount estimates of 7.9%.

A customer sits outside of a Chipotle restaurant in Santa Clara, California, U.S., on Tuesday, Oct. 19, 2021.
David Paul Morris | Bloomberg | Getty Images

Chipotle Mexican Grill’s quarterly earnings and revenue topped Wall Street’s estimates, fueled by consumers’ willingness to pay more for their burritos and bowls.
Shares of the company rose 2% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: $5.70 adjusted vs. $5.64 expected
Revenue: $2.02 billion vs. $2.01 billion expected

The restaurant chain reported first-quarter net income of $158.3 million, or $5.59 per share, up from $127.1 million, or $4.45 per share, a year earlier. 
Chipotle’s restaurant operating margins shrank as it paid more for beef, avocados, paper and labor. However, menu price hikes and lower delivery costs helped offset those higher costs.
Excluding corporate restructuring costs, certain legal expenses and other items, Chipotle earned $5.70 per share, beating the $5.64 per share expected by analysts surveyed by Refinitiv.
Net sales rose 16% to $2.02 billion, topping expectations of $2.01 billion. 

Same-store sales, which tracks sales at locations open at least 13 months, climbed 9% in the quarter. Chipotle had warned previously that the omicron variant and winter storms hurt January storms, but the chain topped StreetAccount estimates of 7.9% for its same-store sales growth.
In-person sales jumped by a third compared with the year-ago period, but digital transactions still accounted for 41% of total orders.
Chipotle opened 51 new locations during the quarter, most of which had digital-only drive-thru lanes, or “Chipotlanes.” 
The company didn’t provide an outlook for the full year but said it expects same-store sales growth in the second quarter between 10% to 12%, assuming that current trends persist. Wall Street was anticipating that same-store sales next quarter would increase by 9.3%, according to StreetAccount.
Read the full earnings report here.

This is a developing story. Check back for updates.

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General Motors will begin tying a “significant part” of its long-term executive compensation with the company’s electric vehicle goals, CEO Mary Barra said Tuesday.
Barra said the compensation targets will include volumes of EVs in North America as well as launch timing and quality for such vehicles.
Barra said the new compensation benchmarks are meant to underscore the company’s commitment to EVs.

General Motors Chairwoman and Chief Executive Officer Mary Barra speaks during a meeting hosted by U.S. President Joe Biden with private sector CEOs to discuss the Build Back Better agenda at the White House in Washington, U.S., January 26, 2022.
Kevin Lamarque | Reuters

DETROIT – General Motors will begin tying a “significant part” of its long-term executive compensation with the company’s electric vehicle goals, CEO Mary Barra said Tuesday.
Starting this year, Barra said the compensation targets will include volumes of EVs in North America as well as launch timing and quality for such vehicles.

GM plans to increase its production of electric vehicles to 2 million in North America and China by 2025, as it moves to exclusively sell EVs by 2035. The company has also said it plans to become the top-selling automaker of EVs, surpassing Tesla, by mid-decade. By then, Barra on Tuesday said GM expects to generate $50 billion from EVs in North America.
“At GM, our compensation has always been driven by the company’s success. And no one should doubt our commitment to lead in EVs or the passion our team has for that mission,” Barra said during the company’s first-quarter earnings call.

The Detroit automaker has faced increased pressure from Wall Street to transition to electric vehicles in the wake of industry leader Tesla’s rise to become the top-valued automaker at a market cap of more than $900 billion.
Barra said the new compensation benchmarks are meant to underscore the company’s commitment to EVs. Further details about the EV compensation targets are expected in the company’s upcoming proxy filing, which Barra said will be filed Friday.
In 2020, Barra’s compensation package was $23.7 million, including a base salary of about $2 million and stock awards of $13 million.

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Amid rising costs and supply chain instability, General Motors reaffirmed its earnings expectations for 2022 despite reporting a lower net profit and margin compared to a year ago.
GM reaffirmed its pretax adjusted earnings forecast of between $13 billion and $15 billion for the year, while raising its net income expectations to between $9.6 billion and $11.2 billion.
GM also reaffirmed plans to produce 25% to 30% more vehicles this year than last year.

A General Motors sign is seen during an event on January 25, 2022 in Lansing, Michigan. – General Motors will create 4,000 new jobs and retaining 1,000, and significantly increasing battery cell and electric truck manufacturing capacity.
Jeff Kowalsky | AFP | Getty Images

DETROIT – Amid rising costs and supply chain instability, General Motors reaffirmed its earnings expectations for 2022 despite reporting a lower net profit and margin compared to a year ago.
Here’s how GM did compared with what Wall Street expected:

Adjusted EPS: $2.09 vs $1.68, according to Refinitiv consensus estimates
Revenue: $35.98 billion vs $37.01 billion, according to Refinitiv consensus estimates

GM reaffirmed its pretax adjusted earnings forecast of between $13 billion and $15 billion for the year, while raising its net income expectations from between $9.4 billion and $10.8 billion to $9.6 billion and $11.2 billion. Its first quarter profit margin was 8.2%, down from 9.3% a year earlier.
GM also increased its adjusted earnings per share guidance for the year to between $6.50 and $7.50 per share, up from between $6.25 and $7.25 per share. The adjustment is a result of the company increasing its ownership stake in its Cruise autonomous vehicle unit and including the operation’s losses in its consolidated income tax return.

On an unadjusted basis, net income was $2.9 billion for the first quarter compared with $3 billion a year earlier. The automaker reported pretax adjusted earnings of $4 billion for the first quarter, down from $4.4 billion a year earlier.
GM is among the first major automakers to report its first-quarter results. Investors are watching the report closely as a gauge of the auto industry’s ongoing production and supply chain problems.
In addition to inflation and other macroeconomic factors, the global automotive industry has been battling supply chain problems caused by the coronavirus pandemic for more than a year — specifically, supplies of crucial semiconductor chips that are used throughout vehicles.

Despite the problems, GM also reaffirmed plans to produce 25% to 30% more vehicles this year than last year.

While GM, which largely exited Europe several years ago, has not experienced any substantial impacts from the war in Ukraine like other automakers have, it has been battling through recent factory shutdowns in China due to Covid-19 outbreaks.
GM CEO Mary Barra said the company is “cautiously optimistic” regarding its production in China, as the government has labeled auto manufacturing essential operations during lockdowns.
Investors are also eager for any progress or updates on GM’s plans for autonomous and electric vehicles, including a planned $35 billion investment in the technologies through 2025. GM doesn’t typically break out such costs on a quarterly basis, though rival Ford Motor has promised to begin doing so next year.
GM said since unveiling a new electric version of its Chevrolet Silverado pickup in January, the automaker has received about 140,000 reservations for the truck. The vehicle is expected to arrive to the market next year.
Shares of GM are down roughly 34% so far in 2022. Its market cap is about $55 billion, down from more than $90 billion at the beginning of the year.
Correction: General Motors raised its 2022 net income expectations from between $9.4 billion and $10.8 billion to $9.6 billion and $11.2 billion. An earlier version misstated the adjustment.

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The logo of Alphabet Inc’s Google outside the company’s office in Beijing, China, August 8, 2018.
Thomas Peter | Reuters

Check out the companies making headlines after the bell.
Alphabet — Shares tumbled more than 6% in extended trading after Google’s parent company reported an earnings miss. The firm reported earnings of $24.62 per share and revenues of $68.01 billion. Refinitiv analysts were expecting earnings of $25.91 and revenues of $68.11 billion.

Robinhood — Shares of the retail brokerage fell more than 5% in extended trading after Robinhood said it is cutting back on staff, according to a blog post from CEO Vlad Tenev on Tuesday. The company cited “duplicate roles and job functions” after it expanded last year.
Microsoft — Shares dipped 0.4% in extended trading after Microsoft reported earnings that exceeded expectations. The tech giant reported earnings of $2.22 per share, compared to $2.19 earnings per share expected by analysts, according to Refinitiv. Revenues came in at $49.36 billion, versus the $49.05 billion expected.
Enphase Energy — Shares jumped more than 6% in extended trading after the solar tech company reported quarterly results. Enphase reported earnings of 79 cents per share, compared to analyst expectations of 67 cents per share, according to Refinitiv.
Meta Platforms — Meta’s stock price dropped more than 4% in extended trading following sharp declines for the Nasdaq Composite and Big Tech names during the trading session. The social media company is expected to report quarterly earnings on Wednesday.
Qualcomm — Shares of the semiconductor stock dipped 1.8% after hours, extending losses from the regular trading session. Qualcomm is expected to report quarterly earnings after the bell on Wednesday.
Visa — Shares jumped 4.8% after the payments company posted an earnings beat on the top and bottom lines. Visa expects travel recovery will continue to boost growth.

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CinemaCon kicked off with National Association of Theatre Owners CEO John Fithian declaring the death of day-and-date theatrical and streaming releases.
Throughout the pandemic day-and-date releases became a necessary part of the box office recovery process.
However, as more consumers have returned to movie theaters, the need for these kinds of releases has waned.

President & CEO of NATO John Fithian speaks onstage during CinemaCon 2021 The State of the Industry and MGM/UAR Presentation at The Colosseum at Caesars Palace during CinemaCon, the official convention of the National Association of Theatre Owners, on August 24, 2021 in Las Vegas, Nevada.
David Becker | Getty Images Entertainment | Getty Images

LAS VEGAS – The death of cinema has been greatly exaggerated — that’s the theme of this year’s CinemaCon.
Instead, it’s the same-day release model for theaters and streaming that has kicked the popcorn bucket, according to National Association of Theatre Owners President and CEO John Fithian.

“I am pleased to announce that simultaneous release is dead as a serious business model, and piracy is what killed it,” Fithian said Tuesday in his annual address at CinemaCon, which his organization hosts. “When a pristine copy of a movie makes its way online and spreads, it has a very damaging impact on our industry.”
Fithian’s remarks came after a lengthy speech by Charles Rivkin, the chairman and CEO of the Motion Picture Association, about the dangers digital piracy has on the theatrical industry and how the MPA is working to combat illegal uploads and downloads of cinematic content.
“On average pre-release piracy can take away as much as 20% of box office revenue — your revenue,” he told theater owners Tuesday. “And with the right efforts to build awareness with consumers, lawmakers, and the media, we can continue to build a culture that recognizes piracy for what it is — theft, pure and simple, and a direct threat to creators, the creative workforce, and the creative community everywhere.”
Throughout the Covid pandemic day-and-date releases became a necessary part of the box office recovery process. However, as more consumers have returned to movie theaters, the need for these kinds of releases has waned. Theater owners are optimistic that crowds will keep coming back, particularly after the lucrative box office performance of “Spider-Man: No Way Home,” “The Batman” and “Sonic the Hedgehog 2.”
Studios and industry executives are keenly aware how powerful a dedicated box office window can be for a film and how devastating piracy can be to potential earnings. It’s why Disney scheduled the 2019 release of “Avengers: Endgame” to coincide in China and North America on the same date to ensure that the majority of potential audiences could see the film in theaters before it was pirated online.

While some studios have opted to occasionally implement day-and-date releases, usually movies with low-to-mid-tier budgets or ones that cater to a demographic of moviegoers that has been slow to return, most studios have committed to showing their films for at least 45 days before releasing them to the home market.
In fact, the president of Sony’s Motion Picture Group, Josh Greenstein, touted that “Spider-Man: No Way Home,” which was released in December, remained in theaters for 88 days before becoming available to the public through other platforms. “No Way Home” generated around $1.9 billion at the global box office during its run in theaters.
“When analyzing title after title it becomes very clear that spikes in piracy are most drastic when a movie is first available to watch in the home: it doesn’t matter if its available via premium video on demand or subscription video on demand,” said Fithian. “Robust theatrical windows protect against piracy. If a major title that people are clamoring to see in theaters is released too quickly to the home and then pirated, the temptation to stay home and watch pirated films becomes greater for many potential moviegoers.”

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GM has about 140,000 reservations for the Chevrolet Silverado EV, CEO Mary Barra said
The Silverado EV will have at least 400 miles of range when production begins early next year.
Ford began production of its own electric pickup earlier on Tuesday.

2024 Chevrolet Silverado EV RST

General Motors now has about 140,000 reservations for the upcoming electric version of its Chevrolet Silverado pickup, CEO Mary Barra said during GM’s first-quarter earnings presentation on Tuesday.
GM has promised that the Silverado EV will have at least 400 miles of range, new fast-charging capabilities, and a four-wheel steering system when it goes into production early next year.

GM is positioning the Silverado EV as a direct rival to Ford Motor’s electric F-150 Lightning. Ford had about 200,000 reservations for the F-150 Lightning when it stopped taking new orders for the truck in December. Production of the Lightning began earlier Tuesday.   
GM’s shares were up about 0.7% in after-hours trading. The company reported a decline in first quarter net earnings and profit margin Tuesday afternoon.

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