Business

Monday – Friday, 6:00 – 7:00 PM ET

“Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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OneMain (OMF): “It’s got more exposure to a downturn than almost any other stock that I know. It’s the Dallas Cowboys of financials.”

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Freyr Battery (FREY): “We have too much money going to lithium battery, but at least you called me with one that I think is reasonably valued. So, I’m going to give you the high sign on that one.”

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Ford (F): “I do like Ford. I think I’m buyer of Ford. My Charitable Trust owns it. And I think it goes higher. Buy.”

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Prologis (PLD): “I don’t even know if there is going to be a pull back. It’s one of my absolute favorites since 2009.” Prologis is a real estate investment trust (REIT) focusing on logistics properties.

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Making profits and working on ways to protect the environment are not mutually exclusive, Amazon Web Services CEO Adam Selipsky told CNBC on Monday.
They “don’t have to be at odds,” he said.
Selipsky said the entire company of Amazon is aiming to be net-zero carbon by 2040, a decade earlier than set out in the Paris climate agreement.

Making profits and doing right by shareholders and working on ways to protect the environment and mitigate climate change are not mutually exclusive, Adam Selipsky, CEO of cloud leader Amazon Web Services (AWS), told CNBC on Monday.
In an interview for “Mad Money” with Jim Cramer, Selipsky said the entire company of Amazon is aiming to be net-zero carbon by 2040, a decade earlier than set out in the Paris climate agreement.

Sustainability and profits “don’t have to be at odds,” Selipsky said, pointing to examples at Amazon and AWS that make good business sense by the sheer fact that they are better for the environment such as cloud data centers that are energy efficient.
More broadly, he said, the company is putting low carbon concrete into its data centers and office buildings and seeking out sustainable jet fuel for shipping packages. Since 2015, he said, Amazon has reduced average package waste per shipment by 38%.
Selipsky also cited Amazon’s investment in electric truck maker Rivian Automotive — a spoke in the company’s climate wheel — saying by year-end in the U.S. alone, Amazon is going to have thousands of Rivian vehicles on the road delivering packages.
About two years before its 2021 initial public offering, Rivian got a $700 million investment from Amazon and a commitment from the e-commerce and cloud giant to buy 100,000 custom-built electric delivery vans, as part of a move to electrify its last-mile fleet by 2040.
Cramer asked Selipsky if he thinks his kids would say Amazon is doing enough for the environment. “I hope they don’t feel we’re doing enough yet,” because the company is only just getting started, Selipsky said. He added that Amazon doesn’t have all the answers but feels it’s on the right track.

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Starbucks is expected to unveil a reinvention plan Tuesday as the coffee giant grapples with changing consumer behavior in the wake of the pandemic.
The strategy is the brainchild of outgoing interim CEO Howard Schultz, who will stick around to help implement it.
The plan is expected to address efficiency at its cafes and to improve employee turnover rates.

CEO of Starbucks Howard Schultz in New York City.
Steven Ferdman | Getty Images

Starbucks is expected to unveil a reinvention plan Tuesday as the coffee giant grapples with changing consumer behavior, outdated store designs and a union push in the U.S.
The strategy is the brainchild of outgoing interim CEO Howard Schultz, who returned to the top job in the spring after Kevin Johnson’s retirement. Schultz will cede the reins to incoming CEO Laxman Narasimhan in April but will stick around to help implement the plan.

Starbucks said Tuesday’s investor day in Seattle will feature presentations and a question-and-answer session with leadership, but it is unclear if Narasimhan will speak with investors for the first time.
Schultz’s new strategy is meant to address how the coffee chain plans to drive growth in a post-pandemic world. Shares of the company are off 24% year to date, dragging its market value down to $102 billion. A slow recovery in China, the union push in the United States and broader economic uncertainty have weighed on the stock, but Wall Street’s approval for the reinvention plan could reinvigorate shares.

In August, Schultz told investors the plan will tackle “increasing efficiency” in U.S. cafes, with consumer behavior changing in the wake of the pandemic. Customers are increasingly ordering their coffees from their phones or drive-thru lanes instead of sitting in cafes. Three-quarters of drink orders in its latest quarter were cold beverages, usually with pricey add-ons.
But the company is also looking to soothe baristas who have complained about understaffing and feeling overworked. More than 230 company-owned cafes in the U.S. have voted in favor of unionizing under Workers United. The company, led by Schultz, has been working to curb union support through efforts like refusing to extend higher pay to unionized cafes and firing organizers.
The union push has slowed in recent months, but Starbucks is still grappling with high turnover. A quarter of U.S. baristas are quitting their jobs within 90 days, up from roughly 10% before the pandemic, according to The Wall Street Journal.

Additionally, Wall Street is expecting an update on Tuesday to the company’s long-term outlook. In May, Starbucks suspended its fiscal 2022 forecast, citing lockdowns in China, investments in its U.S. employees and high inflation.
The company’s previous long-term forecast projected adjusted earnings per share growth of 10% to 12%, revenue growth of 8% to 10% and global same-store sales growth of 4% to 5%. Barclays analyst Jeffrey Bernstein wrote in a note to clients that he believes most investors would prefer the company modestly lower its outlook so it can consistently beat expectations and raise its forecast.
In its latest quarter, Starbucks reported global same-store sales growth of 3%, fueled by strong demand in its home market. But Covid-19 restrictions in China hammered its same-store sales growth in that market, its second largest.
Tuesday’s investor day is scheduled to begin at 10:30 a.m. and conclude by 6 p.m. ET.

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Monday – Friday, 6:00 – 7:00 PM ET

CNBC’s Jim Cramer said Monday he believes the stock market low of mid-June will hold as the bottom in this terrible year of selling.
However, he acknowledged that it won’t be easy and that Wall Street bulls do face a host of forces that appear to be working against them.

CNBC’s Jim Cramer said Monday he believes the stock market low of mid-June will hold as the bottom in this terrible year of selling. However, he acknowledged that it won’t be easy and that Wall Street bulls do face a host of forces that appear to be working against them.
“Sometimes I just want to tell these doubters, as I constantly tell strangers, don’t give up the ship,” Cramer said on “Mad Money,” hosting the show from Seattle.

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Cramer said he certainly understands why the bears look to be in the driver’s seat despite Monday’s rally that built on last week’s rally. In fact, the S&P 500’s advance last week broke a three-week losing streak.
Could we be getting a bear market rally after weeks of selling? Of course, Cramer said. It’s September after all, the worst month of the year for stocks. And after a terrible August, which traditionally is a pretty good month for stocks, he said the selling could return. But he doesn’t think the market will break below the mid-June low.
Cramer said, inflation — no matter what Tuesday’s consumer price index for August actually says — is a problem. Just how big of a problem, that’s the big question as investors ponder whether the Federal Reserve will increase interest rates 75 basis points or 50 basis points later this month. The former would be a third straight hike of that magnitude. That’s what the market is betting on nearly unanimously.
Cramer also gives a nod to the bear arguments that the government’s environmental agenda is not very market friendly, that more layoffs are coming in corporate America and tech is still way overvalued.
While all true, Cramer is focused on inflation getting better not worse, because commodity prices peaked long ago, but he also favors a bigger 75 basis point rate rise to help cap wage inflation.

Outside of all that, Cramer sees a truly positive market force developing: the Ukrainians driving the Russians out. If that were to happen, he said oil, gasoline and natural gas prices — all elevated due to disruptions from the war — would plummet. That would give a tremendous tailwind to the market.
“Obviously, this whole war has been a horrifying humanitarian disaster, but if Ukraine can win, that’s huge for the stock market,” Cramer said. “Same for food prices. And the euro could finally make a comeback, allowing our international companies to make more money overseas.”
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Disclaimer

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Peloton announced Monday that co-founder John Foley is resigning as executive chairman.
Chief Legal Officer Hisao Kushi, another co-founder, is also departing. He will be replaced by Uber veteran Tammy Albarrán.
The changes come as CEO Barry McCarthy orchestrates a massive transformation plan for the fitness company.

Peloton on Monday announced the resignations of two of the company’s founders and another top executive, marking the end of an era for the struggling fitness-equipment company as CEO Barry McCarthy dramatically reshapes the business.
Co-founder and former CEO John Foley resigned from his position as executive chairman of the board effective Monday. Fellow co-founder Hisao Kushi will leave his post as the company’s chief legal officer Oct. 3, while Kevin Cornils, chief commercial officer, who has been with the company since 2018, will leave Sept. 23.

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Foley served as Peloton’s CEO for nearly 10 years before stepping down in February, coinciding with a large round of layoffs. McCarthy took the helm and Foley moved to the role of executive chair.
“There wouldn’t be a Peloton without John Foley or Hisao Kushi,” McCarthy wrote to Peloton employees. “Without John’s unwavering commitment to his dream, there wouldn’t be a passionate and devoted community of nearly 7 million Peloton Members. I want to thank John for paving the way.”

John Foley, co-founder and former chief executive officer of Peloton.
Michael Nagle | Bloomberg | Getty Images

Peloton, which went public in 2019, thrived during the early days of the pandemic as gyms shut down and people purchased exercise equipment while working from home. Shares of the company hit a high of around $167 in October 2020. As of Monday’s close, however, the stock was at $11.05, down nearly 70% this year alone.
The moves announced Monday represent the latest wave of shakeups under McCarthy, who came to Peloton after tenures at Netflix and Spotify. He has pushed his Peloton turnaround plan since he took on the CEO role and realized the depth of the issues plaguing the company.
McCarthy’s changes have included the introduction of rental options for the company’s Bikes, certifying pre-owned Bikes for resale, selling Bikes and other products on Amazon, and pushing to expand Peloton’s digital subscriber reach.

McCarthy reiterated his commitment to the overhaul during a fireside chat in the Goldman Sachs Communacopia and Technology conference Monday. He said the company will soon begin selling products in yet-to-be-announced brick-and-mortar locations. The CEO also said Peloton is focused primarily on personalizing user experience, and McCarthy speculated about adding third-party content to Bike screens.
Karen Boone, the former president of Restoration Hardware, will take Foley’s place as chairperson of the board.
Kushi will be replaced by Tammy Albarrán, Uber’s chief deputy general counsel.  Albarrán, as a partner at Covington & Burling, helped lead an investigation into Uber’s workplace culture before its 2017 IPO. “Albarrán oversaw Uber’s global legal teams and was a driving force behind the company’s cultural transformation,” McCarthy wrote in a Monday press release that called the changes at Uber “profound.”
Chief Strategy Officer Dion Sanders, who has overseen many of McCarthy’s changes, will take on the new title of chief emerging business officer as he assumes many of the responsibilities of Cornils, the departing chief commercial officer. The company also signaled commitment to its apparel and accessories endeavors, which will be officially overseen by Jen Cotter, Peloton’s chief content officer.
Foley, for his part, praised the management team he’s leaving behind and hinted at a new venture.
“Now it is time for me to start a new professional chapter,” Foley said in Monday’s release. “I have passion for building companies and creating great teams, and I am excited to do that again in a new space.”

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Visa, MasterCard and American Express said they will implement a new merchant category code for gun retailers.
The International Organization for Standardization approved the code last week.
The National Rifle Association is criticizing the move and says the code is “a capitulation to anti-gun politicians and activists.”

Fire arms are seen at the Bobâs Little Sport Gun Shop in the town of Glassboro, New Jersey, United States on May 26, 2022. 
Tayfun Coskun | Anadolu Agency | Getty Images

Gun law advocates are praising a decision to adopt a new sales code for transactions at gun stores, a move they had urged to help flag suspicious purchases.
Last week, the International Organization for Standardization (ISO), which sets standards for payment transactions, approved the special merchant code for credit and debit card transactions at U.S. gun stores. Then over the weekend, Visa, MasterCard, and American Express said they would begin using the new code.

John Feinblatt, president of Everytown for Gun Safety, said the move is a critical first step toward giving banks and credit card companies the tools they need to recognize dangerous firearm purchasing trends − such as a domestic extremist building up an arsenal — and report them to law enforcement.
A merchant category code indicates the types of services or goods sold to consumers. Previously, gun store sales were categorized as “general merchandise”.
The attorneys general of New York and California and Massachusetts Sens. Elizabeth Warren, D-Mass., and Ed Markey, D-Mass., were among the other notable figures who supported the effort. In New York, dozens of lawmakers had sent letters to the leaders of major credit card companies, urging them to adopt the code.
“When you buy an airline ticket or pay for your groceries, your credit card company has a special code for those retailers. It’s just common sense that we have the same policies in place for gun and ammunition stores,” New York City Mayor Eric Adams said to the Associated Press over the weekend. 
In a statement, the National Rifle Association said the move “is nothing more than a capitulation to anti-gun politicians and activists bent on eroding the rights of law-abiding Americans one transaction at a time.”

“This is not about tracking or prevention or any virtuous motivation – it’s about creating a national registry of gun owners,” the statement said.
Mastercard said that it will work to protect “all legal commerce” and “the privacy and decisions of individual cardholders” on its networks. American Express and Visa, the world’s largest payment processor, also committed to implementing the new code.
“Following ISO’s decision to establish a new merchant category code, Visa will proceed with next steps, while ensuring we protect all legal commerce on the Visa network in accordance with our long-standing rules,” Visa said in a statement.
“These new merchant codes will help banks and financial institutions track suspicious and potentially illegal gun purchases,” said a statement from Shannon Watts, founder of Moms Demand Action, which advocates for public measures that can protect people from gun violence.
Amalgamated Bank and the California’s teachers’ pension fund were also among those who heavily campaigned for the new code. 
In a press release Friday, Priscilla Sims Brown, president and CEO of Amalgamated Bank, said the code “will allow us to fully comply with our duty to report suspicious activity and illegal gun sales to authorities without blocking or impeding legal gun sales.” 
Walmart and Dick’s Sporting Goods, which both allow gun sales at some of their U.S. stores, did not respond to requests for comment Monday.

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Expedia CEO Peter Kern told CNBC on Monday business travelers have returned. During the dark times of the Covid pandemic in late 2020, he predicted they would make a comeback and that day has come.
“You’re here in Seattle. And I’m traveling all the time. So, I think business travel is back. I said from the beginning business travel would come back. We’re seeing it all over,” Kern said, speaking with Jim Cramer, who was in Expedia’s home city for “Mad Money.”

Fast forward to today and it has, Kern said. “People are traveling like crazy. If you’ve been in an airport you know that. Everyone is complaining about it. They’re too crowded, not enough staff.”
Last year, Expedia agreed to sell its corporate travel arm to American Express Global Business Travel. As part of the deal, Expedia became a shareholder in Amex GBT and struck a long-term strategic partnership.
Kern’s company also operates its namesake Expedia service as well as others in the travel sector including Hotels.com, Hotwire, Travelocity and Orbitz. The company is also behind Vrbo, short for vacation rentals by owner. It competes against Airbnb.
With all those brands under one roof, Kern and Expedia certainly have their fingers on the pulse of the travel industry. The CEO said travel has been booming. “There’s no question all summer and still has been strong into September. There doesn’t appear to be much let up,” he said.

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Ford Motor is expanding the availability of its hands-free highway driving system to Lincoln’s entry-level Corsair crossover.
The 2023 Corsair, starting at about $40,000, will be the lowest-priced vehicle in the company to offer the technology.
Ford’s system uses a suite of cameras and sensors in addition to lidar-mapping for hands-free driving on more than 130,000 miles of dedicated highways in North America.

2023 Lincoln Corsair Grand Touring plug-in hybrid electric vehicle

DETROIT — Ford Motor is expanding the availability of its hands-free highway driving system to Lincoln’s entry-level Corsair crossover, as the automaker broadens the technology to lower-priced vehicles.
The 2023 Corsair will be the sixth vehicle in Ford’s lineup to offer the system and only the second Lincoln model, following the brand’s flagship Navigator SUV. With the expansion of the system — branded as ActiveGlide for Lincoln and BlueCruise for Ford — the Corsair will be the lowest-priced vehicle in the company to offer the technology.

The Corsair will be priced starting at roughly $40,000 to $55,000, which includes a plug-in hybrid electric model. Ordering for the crossover is open now, with vehicles expected to arrive in U.S. showrooms in early 2023.
Ford’s electric Mustang Mach-E currently offers the technology and starts at about $50,000, including the option. The Corsair will offer the system on all three of the vehicle’s trims, company officials said.

The 2023 Lincoln Corsair will offer the company’s next-generation ActiveGlide hands-free advanced driver assistance system (ADAS) for highway driving including lane-changing, in-lane positioning and predictive speed assist.

“It was just a natural progression with Corsair being the volume sales leader,” Dan DeRubeis, Corsair brand manager, told CNBC. “I think that’s the approach that we’ll continue to take with other programs into the future.”
ActiveGlide and BlueCruise use a suite of cameras and sensors in addition to lidar-mapping for hands-free driving on more than 130,000 miles of dedicated highways in North America. It controls the vehicle’s speed and steering, while also monitoring the driver’s attentiveness through an infrared camera system.
Ford says more than 75,000 customers have enrolled in the systems, with more than 16 million hands-free driving miles accumulated through the end of August.

2023 Lincoln Corsair Reserve

Ford’s systems are similar to General Motors’ Super Cruise technology, however they are not as widely available or capable in some situations such as turns, where the technology may need to hand steering control back to the driver.
The systems from GM and Ford both offer fewer capabilities than Tesla’s advanced driver-assistance systems such as Autopilot or “Full-Self Driving,” which have been scrutinized for overpromising hands-free functionality and enabling drivers to misuse the systems.
No vehicles on sale today are fully self-driving. All driver-assist systems still require drivers to pay attention.

2023 Lincoln Corsair Grand Touring plug-in hybrid electric vehicle

The addition of ActiveGlide to the Corsair, including lane-changing capabilities, is part of a host of updates to the vehicle for the 2023 model year. Other changes include interior and exterior design updates such as a new grill and 13.2-inch center touchscreen, as well as new trim and color options.
Ford’s hands-free highway system is currently offered on the Lincoln Navigator as well as the Ford F-150 and Lightning pickups, Mustang Mach-E crossover and Expedition SUV.

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