you don't know whether to hope for a great economy or a so-so economy, because the fed's always in the back of your mind. thanks, megan. appreciate it this morning we are going to take a quick look solid gains indicated for today, which is wednesday, but really, like a thursday. we'll be here tomorrow, which is like a friday, because we're off friday make sure you join us tomorrow "squawk on the street" is next ♪ good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer at post nine of the new york stock exchange. david faber has the morning off. bulls will try again to snap this losing streak, now extended to three days. tons of movers in pharma, autos, retail, and media, and don't forget fed governor waller after the bell onight. our road map begins with stocks looking to bounce after that late-day decline for the s&p and nasdaq yesterday china, courting u.s. business leaders, president xi

telling the ceos of chubb, blackstone, qualcomm, and others that china's economy has not peaked and its growth prospects remain bright. and apple's not-so-good year, jpm pointing to rising concerns of an iphone slowdown in china let's begin, though, with the markets. the delivering alpha investmenter survey of leading institutional investors, strategists and cnbc contributors focuses on their strategies for q2 and beyond 60% believe the market has run too far too fast i haven't heard you say that yet, jim >> i do care about speculation, and we have had a couple of speculative stocks dislike him or like him, president trump's stock is a little confusing to people, confusing speculative. >> today, you said it's overvalued >> exactly i can't find a way to value it reddit, that got -- that was a little too much similar to gamestop, which did not have a good quarter

i'm calling for a broadening out. what i'm seeing is that it's not too far too fast it's now the banks for instance, we see some downgrades of banks because the stocks have moved too much it's the industrials the rails are vulnerable because we'll see from csx, because they've moved so much. i like -- health care has been extraordinary. look at the way merck burst out on what could be a boutique drug but very, very important so, i don't see it like that i think that what you're seeing is the megacaps are donors donors to the point -- we'll talk about apple -- that says to me, there was a move too far too fast, but the megas are distributing and they're distributing right to the rest of the market, which i regard very bullish. >> yeah. your point on apple is well understood we'll get to some of the negative commentary on tesla today. that will be a big point of discussion for your club meeting today. >> yes i'm very concerned that people don't understand the trajectory

of apple it has something good, and it has a decline, the decline can be precipitous, and then they have something good. if they came out and said, india and brazil are going to be very strong, they can offset the 500,000 phones or million phones they didn't sell, then i think people would get very excited. i see salesforce making an enterprise, not a truea cap, enterprise move that i think i very important i like what amazon's doing but i am going to speak to jeff marks, my partner, and say, if google doesn't get that announcement with apple that drove the stock up big, you got to get out and you have to get out because people are going to chatgpt and claude 3 to do what used to be elementary search. i don't use -- i've cut the number of google searches in half that's anecdotal, but it's just so much easier to go to chat or claude >> you've been pretty clear this week, at least >> claude is really -- >> you're looking for excuses to get out. >> if you google claude about

me, it's hilarious it's hilarious and i'm like, wow. they nailed me you can -- claude's fun. a lot of younger people just get a kick out of the way claude responds to things you don't get a kick out of the way google search -- you have to go through a lot of ads. google is not in ascendance here >> they talk about the trough in a.i., where every technology goes through this period where there's a big promise, reality, gut check, and some companies are finding there aren't a lot of applications they can roll out to clients yet, for example. >> i think one of the real missing pieces of the puzzle about what jensen huang was talking about was, you need all -- the room was filled with implementers you can't call us. you have to go to servicenow to get us fixed you have to go to dell if you want to -- and that process of having an intermediary, that takes much longer than people realize. if you could just call jensen

huang and say, listen, i need -- like meta could do -- listen, i need 350,000 of h-100s, they can do it. amazon web services gets the full suite, and there's a terrific video of adam selipsky, this is from last fall, and the relationship with nvidia, but those were the only two that you just -- you call him and say, we'll take everything you have >> broader than a.i., goldman, for example, piece today about pension rebalancing at the end of the quarter, which they argue would be the biggest rebalance since june of last year. >> those are always just -- i think they're very hard to game. we don't know, whoever does last last. yesterday, i thought there was a wave of people who realized this, that the decline might be precipitous, and i thought it might be owing to this rebalancing already. >> right >> i didn't like yesterday at all, because we had big reversals. one of the stocks we follow, we're going to review today, is

eaton, and the stock was up at one point almost six points, and then it closed barely up, and that kind of reversal, people call an iowan reversal, because it opened up very high it goes to $316 and comes back to $312. that says, be careful, and i think eaton is a very good company. >> to your point about broadening out, two calls today. one is fund strat, small caps, 50% upside >> they're down so big that's a natural >> and bmo today, belski says there's trends emerging in march that maybe this underperformance, which, by the way, is the worst in 20 years, may be coming to an end. >> i do think that they don't have the coverage anymore that they used to i was dealing with a company the other day, and i said, look, you need more coverage i mean, just don't get a lot of coverage >> you've been on this for years. >> yes, and now i think the sell-side doesn't have enough analysts they don't make enough money

i think when you look at the small to -- when you look at a company that's valued at $700 million, i don't even like to talk about it anymore on "mad" because i think it would move to a billion. there's just such excitement about if you can find a small to medium size, run with it they're worrisome from my point of view because of the people who watch the show there's a lot of people who come in and buy one of those. those are undervalued versus the big guys >> so, you do agree that -- unfairly punished, as belski said, left for dead if you look at ownership trends over the last couple decades. >> they don't have sponsorship you look them up and say, okay, let's see what the earnings forecasts are, and there won't be anything about them so, suddenly, you find yourself on your own, and the big institutions don't want to be there. they want to rely on needham call or a cowen call, someone who's not bulge bracket, and we don't have enough information about these companies to make an informed decision. >> so, your preference, then,

would be to stay within the s&p. >> yes >> but beyond mag seven and look for broadening and health care, banks, industrials >> yes, and the beginning of my conference call today at noon for the club, i talk about how people, when i meet them, they just want new names, but they want new small names, hoping to find, yes indeed, the next nvidia, and they don't want to hear that it's servicenow, as good as servicenow is. they want something no one's ever heard of, and i've got -- i got two nutjob dogs, and they're ripe for new names i just can't find them >> you mentioned merck, which is going to open up, i think, five, and you have them on tonight >> yeah, rob davis is just -- they made an acquisition the acquisition paid off rob davis has quietly been building a tremendous portfolio. i'm going to hear about what prometheus has been doing. it has to do with colitis. rob has energized that company

in an extraordinary way. i hope to spend a lot of time with him >> there's merck today there's moderna rolling some vaccines to final stage. >> yeah, they've got a flu vaccine, the respiratory vaccine that i thought was very positive moderna's a stock that -- there's a health care stock that's been left for dead. all the new biotechs, other than -- i can't find anything about them when i mention that they're good on air, the next day, they add 20%, so i can't play that role that's not my job. but i do think that when you see a company that is a smaller cap, you look at it and say, wow, maybe i can be in that stock and not the one -- let me give you an example let's say you want to be in potato chips because you see that lay's is doing better you go into utz. that's a $2 billion company. if you can find something that's even smaller, it will get even more exciting. >> we'll get to some passaged goods, big investor day at kmb today. >> exactly >> in the meantime, some news out of commerce and treasury with a.i. risks in focus, our

me meagan is in d.c >> commerce and treasury departments are out with recommendations on how best to regulate a.i. across the private sector treasury's report is focused on the financial sector specifically they say this is based on interviews they held with 42 firms in finance and technology, and they highlighted concerns specifically over sophisticated phishing and on a.i.'s ability to imitate voice and video they say that, for example, could fool a bank into thinking it was talking with a real customer now, in this 50-page report, treasury also says that some firms reported concerns with current risk management frameworks, saying they may not be adequate to cover emerging a.i. technologies such as generative a.i., and they had concerns that firms may be moving too slowly on this. now, both agencies are recommending better disclosures on a.i. systems that would detail the training that went into them, for example they're calling this a nutrition label for a.i. tools they would also detail how a system is performing and what

it's best used for commerce is also calling for regulation here, including some that would require audits of high-risk a.i. systems this, they compare to our financial system and the audits we have in place there we're also calling for liability rules, including on who would be at fault if an a.i. system were to cause harm. now, carl, both agencies acknowledge the benefits of a.i., and they want to help a.i. realize its promise, they say, through these rules. for now, this is not binding, although we do expect to see mandatory guidance from the biden administration on this, maybe as soon as later this week >> that is fascinating, megan, and hits very close to home. megan cassella in d.c. what do you think, jim >> it's -- after being out there last week with jensen huang and his team, we need this very badly. some companies, predictably, like amazon web services, have done an unbelievable job on this, but when you listen to what anthropic -- now, that's 4

billion by amazon, 2 billion by google there's tremendous hallucination, and they're fooling people all the time, and so you really do want to get a single source of truth about this by the way, everyone who's been getting calls on medicare and something they know about you, which is what i got a call on, that's the hack. the hack has been distributed, and it's something -- first time i've ever felt -- i got five calls in the last week of different medicare providers who knew everything about me, and this hack, nikesh from palo alto told me, maybe the worst hack ever they know everything about me. everything >> are you convinced or confident that regulators can be mindful and yet not restrictive on the innovation? >> no, i'm not but i do think what tends to happen is the first one of these, the interstate commerce

convention in the 1800s, if anyone's going to figure this out, amazon will set the standard they have to get rid of the bad actors and maybe the best way to do it is to self-regulate. they don't really know what to do what you do is go to andy jassy and tell us what duo you think s the right thing to do. we need it there have been some very bad hacks within the federal government where they need to figure out who's building the actual learning part, which is that they can -- they can literally get into the learning part and convince these machines to come up with things that could hurt you so, very warranted good report. >> one thing that's increasingly clear is that the innovation's in the hands of a select few this picture of mark zuckerberg with jensen huang -- >> i've been trying to get ahold of him to go through this. this is my piece, when i got back, my first piece was, you got to get it right with jensen, and jensen and mark have a very,

very good relationship when i first talked to jensen about mark, it was, i would say, didn't really know, but they've gotten together, and i think jensen, by the way, has been an incredibly positive force on mark jensen is not a warrior. he always says he comes in peace and really doesn't want to help you if you don't he doesn't want to help you. i think it's good by mark. and you got to get with jensen what was scary about this, no leather jacket from jensen, which made me think it might have been some sort of adobe photoshop. where's the leather jacket my wife says it's a tom ford jacket and cost as fortune speaking of adobe, we'll talk about the adobe summit this week nice call today saying -- >> that's been ben righteous again, doing a good job. when we come back, what's ahead for apple as well after what's been a rough quarter for the stock. it will be a big topic for jim's investing club meeting at noon eastern today. futures do remain positive dow looks to open up almost 200.

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apple announcing its annual worl worldwide developers conference. the watch will be on to see if the company unveils its a.i. strategy along with some new products, and shares of apple are down double digits year to date we mentioned this jpm note today, looking at the china sales, it does raise some concerns >> no doubt about it china is a very big market, and they did say it would be soft this quarter, but i think the softness, the cadence of the softness was very bad. march was very bad i want everyone to be warned i still say, own it, don't trade it, but obviously, we want to see this quarter for the developers conference, i think the attention is going to be for the vision pro, because that's where the writers are going to come. that's all new i know that jensen huang wants very much, as nvidia, to be able to work closely on the business-to-business aspects of the vision pro, which has not

been a focus at all of apple so, i think you have down on -- down on the phones in china and then up when we get to the developers conference, and vision pro, because vision pro, frankly, if they're just going to make it into something that's worn on an airplane, that's not going to work. and so, we really, really, really want to see big companies writing on the vision pro and the number one to write will be nvidia >> it's pretty amazing when you, at the same time, are having to develop a new product category, handle the situation in china, tim cook this week, and then this "journal" piece about phil schiller basically looking at how they're going to defend the walled garden against regulators >> i think long knives are out for them everywhere. i've gone over that justice department suit, which i think is fatuous, because it's already -- they made a lot of mistakes ame merrick garland made a lot of

mistakes he's the attorney general of the united states. it was almost as if it was a rush job locking up a super app, which they're not even doing, making it so that if you send something -- a message to android -- >> it's a green bubble >> that was -- i mean, please. and then at one point, someone said, apple, and apple complained go tell your mother to switch to apple. there's a cavalier notion that i don't see to be the case at all. i think they're very humble, but the government wants them -- everybody wants them that makes me like them. it means they must be doing something right. >> it's a long road when we start down these things. when we come back, cramer's "mad dash. we'll count down to the opening bell take another look at the premarket. still a slew of corporate names we haven't gotten to, including gialne oth kmb, wsn e reon banks and boeing in a moment

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(♪♪) time for cramer's "mad dash" as we count down to the opening bell >> a piece by ubs today, a little countergrain, there's a lot of people that feel that disney is largely because of peltz. this is the proxy fight. but this piece by ubs says sources of potential upside within the disney model, including becoming an earnings

compounder, talking about the parks being good, dtc, is direct-to-consumer, they think it's ramping, good margins, new price target, $140 so this is a piece that says, don't fret this is the subtext. if peltz doesn't get on, there's something very good here i think a lot of this, including the $7.5 billion in costs they're going to take out versus the $5.5 billion that they had not that long ago is in respect to the fact that, listen, we hear the footsteps we we don't want peltz on the board. but this piece says, return to greatness, but going a different way. >> so, you've ascribed this to nelson and not to things that are working within the company >> they -- the company will not like me to say this, but i think that nelson has concentrated the minds of the board and the ceo, bob iger it's an impressive ramp. it does say how much they don't want peltz on the board, to some degree, but you know what? look, there are things that are happening, but i think they're happening faster than we

thought, and that is what i say. peltz is an accelerant i don't know whether he makes the board or not, but he has been a lot behind a rally that i think the company would say had nothing to do with him, and i'm taking issue with that >> interesting ubs was at $120. they go to $140, as you said on monday, barclay's went from $95 to $135. >> people are buying into it what happened last time was when peltz was going to the boards, he called us and said, listen, he's done, stock went from $1$15 to $80 i'm concerned, because when -- if you're taking up $2 billion more in costs, maybe do that slowly if you're trying to get a transition going, maybe you do that more slowly so, i think that this is a mixed blessing again, i think the company would like to say peltz has nothing to do with it cramer, go away. but i did read jim stuart's piece this weekend in "the new york times," and i did not feel

that peltz has nothing to do with it. >> good piece in thr today as well about iger's so-called invincibility era being over we'll get more on disney in a minute opening bell in less than five minutes, and you can catch us any time, anywhere, just listen to and follow the "squawk on the street: opening bell" poas dct.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. truth social parent trump media extending its gains from yesterday's public debut following the company's spac merger in a volatile session, the stock jumped by as much as 59% before closing up 16%. i think it was yardeni last night who said, you have to love the stock market no matter what you think of djt >> well, i think the thing that's interesting is if you want trump to have more money than the democrats for the presidential election, take the stock higher it's a cheaper way to get -- kind of get around the election rules. but it is brilliant. i mean, it's legal so, you take it up maybe they ended a lock-up because the board is controlled. that allows him to take money. it's a brilliant way for a rich person to run for president. >> right

we'll watch -- we'll talk about whether the stock returns to fundamental analysis in the near term, but for now, it's something else, you think? >> you know, there are some people who told me, jim, he who laughs laughs last did not have good revenues, but it's a campaign -- it could be a campaign coffer filler >> let's get the opening bell. at the cnbc realtime exchange, at the big board, it's barclay's and the wnba's new york liberty celebrating a multiyear partners partnership. at the nasdaq, it's blackhawk acquisition, a spac celebrating its ipo. >> spacs, you know, leave me cold they always have a very nice, rosy hue at the beginning, and then they let you down there was a spac that wi was looking at, apropos of the squawk, getty images you feed getty images into the brand-new blackwell, and it

remembers it so if you wanted to say -- let's say audrey hepburn, beautiful image, it will know it if you feed a lot of getty images into it people -- what they're doing is feed ago lot of video into it. i asked that james bond be fed into it. that will happen all bond so, you can come back and say, listen, tell me what cramer's like versus bond but you really wouldn't want to do that. >> right actually, i mean, it's a policy group forecast, but bloomberg has a piece today on the number of uk workers who might be displaced by a.i eight million over long-term >> i don't know about that servicenow does some great work on this, and they think the productivity boost is going to be so terrific that more people can be hired i think the displacement is overdone i think the productivity is underdone. i think that that's a -- that's not what is in sync with what i heard last week. i don't think michael dell would tell you people are going to lose jobs.

jensen, by the way, is saying, the number of job multiple will increase dramatically. it reminds me of what happened right before the civil war, when n they used to make shoes by seamstress, and then they started making shoes by machine, and this frees up people that's a classic industrial revolution that created more jobs >> it's hard to find an innovation that resulted in less work speaking of productivity, jim, it's going to be necessary to offset concerns about inflation. jpmorgan does have a take on the port in baltimore. unlikely a major factor for macro. we're already seeing rerouting to the west coast. port of virginia is going to take up some of the slack. a lot of cars come in by land through mexico >> i have norfolk southern, and i don't think they'll say it's really that additive ford said it will hurt i think there could be some long-term negative consequences. and i want to be sure what's

brought in and what that does is slow down cars that are brought in, and of course, our exports coal, big question so, i'm not so sure that it's something that can be easily dismissed. >> they're talking about maybe 2.5 million tons of coal getting displaced. there's also the concern about, well, the ntsb now has the recorder farm equipment, march's peak period for import of farm equipment because of the planting season. >> this one worries me, and i think, by the way, that csx will -- csx was making a really big comeback, and they've got some terrific auto exposure and great coal exposure. now, remember, you talk about global warming, china, india just building coal plants incredibly fast, and it's hard to -- people don't realize how hard it is because of unions, people are employed, there's, like, over two million people are employed in making coal in china. you don't want to switch that rapidly if you're china.

so, i'm not as sure that it won't hurt their quarters, and i think it -- csx, which is a company i like very much, doesn't take a pause here. >> carnival is the worst opener on the s&p did have some guidance out but impact of the port disruption. >> that is unclear, obviously, not been such a winner here there's no need to go down the food chain just keep buying royal it's funny, you know, when you read the disney apologists all say, and don't forget disney ships. i mean, royal's in the ships business they're in the travel business that's where you want to go. i'm surprised. >> oil's interesting today, gym. some of these inventory numbers have been a little bearish, although retail gasoline, aaa, above $3.50 for the first time this year. >> marathon petroleum is a top five s&p performer they have 13 refiners, 12 states they do almost three million

barrels a day. that is the way -- if you think that this move is too great, you should take profits to marathon. >> and thoughts about directions on wti >> well, i just think it's had such a big run that this is probably the level where our producers -- i'm talking about the big-time producers -- start opening up the spigot. i think it's not well known how the producers have really throttled back, and so this is something to watch, but it's the big guys it's pioneer, for instance, might have been. that's an exxon now. we have to watch what occidental does >> right tesla, lot of commentary today, jim. >> mixed >> big piece in "the times" about the company's stickiness in china and what -- what that means, politically but mostly, it's things like red burn saying that the possibility of negative growth on deliveries is increasingly likely >> yeah. and citi goes from 473,000

deliveries down to 429,000, but i will report to you that in the last five days of negative articles and pieces about tesla, is stock is not going down my thesis is that it's bottoming here, and i think it will surprise people. the last four weeks of steve shurr's hertz regime, when they were selling teslas, the prices went up. let's watch that used car prices went up. >> baird today extends what they're calling a bearish fresh pick on tesla, but you're right. the stock has -- it's hard to suppress it below $170 >> this is a level where people really do come in and buy it i know there's some people worried about ev charging, clean sparks going up. i think this is a level where you won't get hurt if you guy tesla. i think tesla has the ability to be able to turn itself around. they can lower price they can take share. and i don't think anyone thinks that evs are going away. i think it's just we've got a slower ramp. look at ford ford, very committed to evs, but they also have tremendous

hybrid, and anything that's a mix that takes -- puts more hybrids out, and sells fewer ev, meaning you have to create fewer ev, is bullish for ford, but they came out again yesterday and talked about this port situation. i don't think anyone's going to come out today and say, we got to to take advantage of the port situation, because there's loss of life, and we're watching the videos, and we can't believe it. this is not a buying opportunity for port >> yeah, yeah, it has turned from a rescue and recovery operation -- divers were in the water around 6:00 a.m. today, and we're thinking of the people in baltimore, obviously. ton of news in retail, jim h&m was up $14 premarket on these earnings goose, getting 17% of corporate. >> goose has been a house of pain basically since it started. h&m, gigantic. the fact that goose isn't down, again, there's some declines that are so precipitous that when numbers are cut, they finally -- people come up and say, maybe this is the time. retail's been very strong. i highlighted last night

williams sonoma, amazing dick's, just an incredible story. i mean, even though nike's down, williams sonoma, furniture's down, i mean -- gap stores, obviously. >> and you have rh to kick around tonight when we know we get color out of those guys. >> oh my some guys are -- they just charge too much, i guess i don't know i happen to -- i happen to think that this is the right level to do rh too. furniture's making a big comeback we're really starting. we had a big up for covid and precipitous decline and now it's making a comeback as we buy new furniture, and by the way, i got this from the decking company. >> yes >> which saw a big spurt in sales as people are -- this is the rehab and renovate trade it's been a good one it's what's been driving home depot. it's what's been driving lowe's. i did not agree with the downgrade of lowe's today that we got >> yes, yes. >> from davidson, saying this ellison's already done a good job. marvin ellison has not already done a good job. he's going to crush it

by the way, in gardening season, i'm 50/50 lowe's, and i always send marvin pictures, because the lowe's have really done a giant job in garden to take share back from home depot >> there's a couple nice lowe's in your neighborhood in brooklyn >> i like going to lowe's. i like it. >> as for gme, jim, you mentioned the action in the name down about 13 at the open here >> well, it was down 20 last night at one point, and there are some incredibly negative notes. wedbush says its demise is coming when you see that word, "demise," that gives you pause. it was a bad miss. 29, looking for 22 is what they got. collectibles, which have been the savior, are down horribly, down 25. some rules about board investing that were not clear about ryan cohen, so i don't want to go into them. no conference call this is a situation where the best company in america has no conference call, berkshire hathaway, and arguably the

worst, gamestop. everybody else is between. >> it's been a couple years since they called the shorts dumb storm troopers, but stocks way down from those lows >> in the end, you got to have something that can't be downloaded online, and they don't. they never really have been able to reinvent themselves the short was always great idea, but they ganged up on the short. and now, let's see reddit, you got to hand it to them, hand it to our friends at morgan stanley, because they came on gorman yesterday and will, that was, like, wow, i wish i always had that relationship but reddit is down today, which is actually strangely a good sign because it can't keep going up you don't want that to go up and up on the same news over and over again that would be a sign that the wall street bets people are playing havoc, fully know that wall street bets has been trying to wreck my reputation for four years now, and that's why i stopped following them i only hear it secondhand, but it's usually pretty horrible it's always good to be

consistent >> 300-point rise here on the dow at the open. we didn't mention the wells target increase of ge, which they go to $200. >> i think that, first of all, larry culp is there to stay. can we stop those articles, please second, gross margin expansion of 300 to 500 basis points after they spin off for nova it's very interesting because you look at constellation energy, that stock has been a top two performer, and they do nuclear and wind and solar, so i think both are going to do very well larry culp is a genius we all know that, and he's come through in flying colors it's become the go-to aviation name, given the problems with boeing >> right >> which never seem to end >> you're right about that yesterday, moody's puts them on watch for a potential downgrade. >> and there we had calhoun saying they have to buy spirit to get the whole -- get ahold of the fuselage boeing remains on my troubled list i don't think it should have gone up when they announced that dave is stepping down.

you need to go up on orders. you need to go up on cost down you don't need to go up on calhoun stepping down. that's good for the regulators but what we need to see is earnings, and i don't see earnings >> speaking of downgrades, s&p cuts five u.s. banks, jim, on cre exposure including first commonwealth, mnt, sonovis >> there are some that have too much a lot of people felt that wells fargo had exposure no they had very little exposure, this is charlie scharf, and there's a second downgrade to wells fargo, and at the same time, raising numbers. so, give me a break. i don't think those downgrades really matter. i think wells is the one to watch, because they do -- along with bank of america, they do very well if it's higher for longer, and wells, i think, is number one in higher for longer, so that's why i don't think it should be sold it's a big name for my travel trust. it does not go down on this negative because the earnings are going higher tfr it's not an expensive stock.

charlie scharf has his team in everywhere that's the one sl green gets an upgrade at barclay's to equal weight. >> i went to hear them they reinvented the east of grand central, and i don't know why people were downgrading it so badly fantastic property it's a very well-run company, and the shorts, which are still 21% of the float, gamestop circa 2020 you can really blast that thing to the moon. >> we spent part of the week talking about m&a chatter, and it is chatter, jim, but yesterday, it was international paper, tomei had some comments looking at health care possibilities, j&j, this report in the "journal" about shock wave >> i thought that would be incredible by the way, this kind of work that shockwave does is done also by one of my favorites, ge health care. they have a very similar product. i understand why j&j wants that. j&j needs one thing.

they need the settlement on talc otherwise, every time you get a lift, sell just sell. the lawsuits, when they pop up, all read terribly. there was a mistrial in florida recently we don't know if they're going to come back it's cookie cutter once you have the documents that you need, you just go suit to suit to suit you don't have to do any -- there's no costs on the plaintiffs' part that's what's really bedevilled that company 3m had to settle, but mike roman, they got -- he moved on >> yep, yep. but can we argue here at this point that the burner is dethawing after some of the energy deals and now these discussions? >> absolutely. it's the right way to look at it it's one of the reasons we've stuck with the very poorly performing, until recently, morgan stanley ted pick this is their game, and they can do a good job. i always enjoyed listening to gorman he's now on the board of disney, but i think he would be the first to tell you that the last couple quarters were not optimal. they need to make -- ted pick needs to make a statement.

he's a brilliant fellow, but they need to say, we're ready for the ipo window and ready for m&a. if they don't do that and don't talk about e-trade, that stock is going right back to the 80s >> do you have kimberly on later? >> yes, kimberly is doing something i've long wanted they're restructuring. very big restructuring they're moving product to product, but for regions, because to sell diapers, they come back and they've taken number one position in china using this to sell diapers is a local thing. to sell tissue is a local thing, and mike hsu, who's done a great job turning earnings but not the stock, i like this i actually debated with jeff marks, and we were going to talk about it for our club, about whether it's time to leave procter and go to kimberly, because mike hsu is taking action but it's so hard to bet against procter, because, man, are they well run >> although, this is going to be the highest for kimberly, at least at the open, since september.

>> never go wrong buying kimberly kleenex is still -- if i said, do you have any kleenex, and you gave me the one that i buy, which is costco, you feel like, why did i try to save money on that >> they're going to incur about a billion and a half in charges as part of this reorganization >> mike hsu is a guy -- big fan of our show, by the way. loves it mike hsu is a guy who has had it, i think, with the underperformance and is going to make it so they can excel in sales. the china term was rather remarkable remember, china is diapers, and they have a zero -- they don't have growth, but within that, he focused on china, and he's number one he can do that elsewhere there's still argentina. >> the china stuff is interesting. there's "the journal" piece on how far foreign direct investment has fallen, and then there's the meeting with xi, meeting with schwartzman, qualcomm, chubb. >> i think that this is a moment where president xi -- i don't think he'll do this, but pfizer, dr. borla, offered them all of the vaccines they wanted

they had a better vaccine. xi said, no, we have a better vaccine. as an olive branch, why not take all these free vaccines? helps them, hurts us, but that would be admission that his vaccine wasn't that good, which would be ridiculous, since we know it wasn't that good evan greenburg, aig, always had the best relationship with china. qualcomm does more business with china. >> fedex is in the mix as well >> this is a very home crew audience these are companies that have liked china and have never backed away. >> indeed. about 20 of them, all male >> i hope it's not a lecture i hope it's not a two-way street we're getting tired of lectures, and so is the rest of the world. hence why mexico is our number one trade partner. hence why everyone i know is pulling back, country-wise, so it's time that they either recognize this or go full-scale cold war this is the last chance ranch for the no cold war. >> last exit really >> yes, last exit to --

>> brooklyn? >> a decent book they made us read there. my daughter said, do you like jack kerouac i said, i had to pretend that i like him 300-point gain at the opener as the bulls will try to break this three-day loss. watch bonds as well. one of the most important, at least, fed discussions tonight, 6:00 p.m., will be waller as we await powell's -- >> does he know that "mad money" is on at that time can't he hold it until 8:00? >> 7:01? >> i'm rebelling against programming now. just kidding >> ten-year, 4.22%

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small caps look you can always do paychecks. the better one is cintas provides fire protection equipment and, of course, uniforms they had an unbelievable quarter beat the numbers big on every line and raised very big and this is a sign of great health in the country. and i think this is a remarkable company. they beat and raise, beat and raise. and todd schneider is not a showman he doesn't believe in showing off how good his company is let's invest in companies we know if you look at cintas, almost every fire extwi ks ting -- extinguisher is cintas >> it us the make you think about the jobs report.

>> let's hope -- oil, i know it's ancillary we need to see rents down, used cars down and those are really at the construction of what has to happen. >> it definitely lags. but needs to kick in. >> a great show. >> sounds like you have a good one tonight. >> we have the ones you need to watch we have merck and this is rob davis talking about this drug that saves so many lives. and then we have norfolk southern there's a new wrinkle with csx and then, you know, mr. hsu is laying off a lot of people and redoing things he's had it with his company falling behind the forms of prague o proctor and gamble it's a great story. >> yes i'll be listening at noon. >> yes

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good wednesday morning welcome to another hour of "squawk on the street" i'm sara eisen with carl quintanilla and wilfred frost live at post nine of the stock exchange. we have a rally on our hands the dow is up more than 300

points s&p up almost half a percent still negative week to date. we had a f few intraday reversals including yesterday but for now the only sector lower is information technology, real estate and utilities and industrials are leading the charge treasuries right now, part of the story. you're getting some buying in bonds pushing yields lower ten year at 4.22, two year below 4.6. here are three big movers. shares of robinhood are rallying right now. the company expanding, unveiling th the first ever credit card with no fees and 3% cash back and watching shares of gamestop, they're plunging the retailer reporting a drop in q4 revenue saying it reduced workforce to cut costs and shares of moderna pushing higher announcing positive clinical

trial data on three vaccines against other viruses. moderna said it's moving the shots to the final stage studies. the biggest news of the day in the land of macro is about my favorite topic, the japanese yen, which overnight -- >> not snack foods >> that's number two, you know that yen is at the very top basically it's reaching these very weak 34 year lows there was an emergency meeting in japan overnight about what to do about it. they worry when the currency gets a little weak, it's good, helps exports, stimulates the economy, when it gets super weak they worry about destabilization. they get to levels around 152 where they could intervene, it's jeff job owning in foreign speak.

it's a sign that we might step in and actually buy to prop up the yen. buy yen, selling dollars, treasures to buy the japanese yen. what does it mean? it's not a big impact for necessarily the stock market here but if they succeed, you know, the weaker yen has been propelling the japanese stock markets up. >> give us the context as well it comes as they exit negative rates? >> the problem is they exited in the most dovish way. >> right took a year. >> took a while and it was a dovish hike, they didn't signal nor hikes on the way they said they will keep accommodative conditions they'll continue to buy bonds. so the yield differential between our yield and their yield, they're out of negative territory, is still very big that's the so-called cary trade which fuelled a lot of money

into the dollar. >> the nikkei hit all time -- last week it was up 5.6% this week trading flat you wonder if they can sort it out without intervening. by saying -- >> threatening it. >> yeah. slightly more hawkish rhetoric with the 0 interest rate. >> i wonder if they can intervene and sort it out. one central bank against a $5 trillion market it's never easy to step in but they have done it in the past, reversed a trend and it's working this morning. at least the job owning. it's lack of big data right now working towards pce on friday. now everybody is trying to figure out the port impact of that tragic bridge collapse in baltimore. one note -- and if whether there will be any economic fallout because it was a big port, a big port for light vehicles, for instance here's the perspective from j.p. morgan the yellow line shows you how big the port of

baltimore is, at least in terms of the tonnage handled it's 17th amid u.s. ports, 15th in containers handled. so initially they say it'll have a minimal implication for vehicle inflation and economic supply chain issues, which is something that people worry about always. >> apparently they import cars from europe so maybe it'll hit the european auto makers a fraction but sounds like there's other routes available. >> j.p. morgan had a report global goods disinflation is coming to an end suggesting that maybe with sticky services and slowing goods disinflation that's going to create interesting headaches for banks around the world. >> that's the case on inflation remaining sticky that goods, pla flattens out. >> spanish 3.2% march up from

february 2. 9. not a key data point but the theme everyone is looking at here, pce is it a third month in a row ticking up >> australia had good numbers, though it's hard to correlate exactly with the u.s. but the trends have been in line. i want to hit the great survey results we got from our delivering alpha survey. where we asked cios and money managers and contributors about the fed and what they expect interesting answers. one that stood out to me, i think the fed will cut rates this many times in 2024. zero% say three. 26% say three. 61, so majority say two. 0% say 0 which i highlighted because of james goreman yesterday who said there's a good shot they get zero cuts this year. >> you do wonder if that's the eventuality.

whether there's time to slip markets. it's not like everyone is guaranteed we must get three or more and therefore the room for disappointing which goreman did elude to yesterday 82% said the fed is doing a good job. >> you can't say they're not doing a good job. >> we have a soft landing, at least for now. they tightened at a historically quick and steep rate and we did not go into recession. and the jobless rate is below 4% >> and stocks are higher. >> and stocks are higher. >> that will get you a good grade. >> who would have expected that could happen. >> maybe i'm surprised for the wrong reason, i've been abroad everyone is criticizing the central bank and joe biden is getting no credit for the economy i think of course they should get credit, that should be the

response look at europe we have inflation high still, a tepid economy at best. germany is in recession. you look here and no one is giving them credit, whether it's the central bank. >> i think on wall street they get credits. >> cios. >> this is 300 cios and they give credit so far. >> shares of coin base are dropping >> according to a court filing the s.e.c. can now proceed with its lawsuit against coin base. a u.s. judge will allow the claims that coin base failed to register as a securities business it is a partial win for coin base, the judge dismissed one claim, the claim they acted as an unregistered broken when it comes to its wallet application. but the legal battle does continue for coin base the ceo and management team have been battling to get crypto

legislation passed a lot of lobbying but for now looks light eel get settled in house. shares of trump media soaring on the second day of trade following the 50% jump yesterday. putting the spotlight on a group of popular stocks. bob pisani is looking at that this morning. the meme stocks are back what does rhett did it, trump media and technology, and game stop have in common? strong retail participation. so-called meme stocks are having a moment again trump media and technology launched as a spac yesterday the new business has a current market cap of 9.6 billion on revenues of roughly 3.3 million and lost 49 million in the first nine months of last year a market cap of roughly 9 million will put it in the lower end of the s&p 500, in line with

caesars, american airlines and mosaic reddit has the same 3.3. and gamestop 5.9 billion even if you think of these as meme stocks this is quite a difference gamestop has a small profit, 5.2 billion revenue. dtj revenues of 3 million, loses money and has a market cap of 7.6 billion. gamestop looks it like like j.p. morgan and reddit has almost doubled the ipo price of $35 in five trading days that's a reversal of the usual pattern that sees high interest ipos decline after the first trading day. reddit is given a number of shares to site moderators part of the loyal base. what the three have in common is

high retail base a high base of individual investors rather than institutional. retail investors move more on emotion and less moved by old school metrics, determining what the price of the stock should be based on future profitability and dividends. when gamestop exploded in 2021 there was traders messaging me to inform me this proved a dedicated, organized group could move a stock and fundamentals don't matter this is nonsense gamestop has been in a long slow decent since 2021. it was $75 that time, adjusted to $13 today so yes, you can get a small group of people moving stocks for a certain period of time but fundamentals matter for all the stocks in the long run. >> stick with us we want to discuss the implications

but robert frank is here on set with us. break down where this put -- if he could liquidate it's significant. >> two weeks ago there was thought of a bankruptcy with donald trump today he has reached his highest net worth ever, the valuation putting the stake in the company at $5.3 billion. that's just his stake. the question is whether he's going to sell, when he's going to sell and at what price? he owns about 58% of the company right now. he's barred for selling those shares or borrowing against them without permission of the board but the board consists of his two sons now his total net worth, at least on paper, is over $8 billion that's more than twice his all-time peak. and it puts him not only back on

the forbes 400 list but he's on the bloomberg 500 for the first time ever. the list of the 500 richest people in the world. his bond in the new york fraud lawsuit was just reduced to $175 million, which he said he could recover. if he wins in november, he would be the first u.s. president with a controlling stake of a publically traded company. >> my question, bob, whether if we're talking about the meme stocks again is whether the founder/principal holder can announce he's selling and the stock hold the price which is another extraordinary thing that happened. >> given me he has 58% stake, what happens if he sells in large quantities, the stock price plummets >> when we're talking amc or tesla, musk was announcing he was selling and it went higher. >> the normal dynamics you followed all of your life to apply. this is the combination of a

meme stock and political stock it's a hybrid that people can express their excitement for politics and the stocks without regard to any fundamentals i could see a scenario he sells and it could still go up because again it's already detached from the normal dieynamics of the market fundamentals. >> in the 1990s we had arch crawford, remember this, arch crawford said invest by astrology. people loved hearing him we had him on. we said you have to be kidding if you can get enough people to believe buying on sun spots, astr astrology, a personality, you can move the market but the original reason to own stocks the definition of a stock is participation of future stream of profits. >> can he secure a bond against this at the moment >> it's not clear. my understanding is he can't

currently borrow against anything. >> he can't margin brother plus given the volatility of the stock is going to lend him >> can he hold it if he becomes president? >> there's nothing to restrict him -- remember the first time around he had to put his company in private trust, gave control to his sons. he didn't have to do that. the president and vice president are immune and not -- the rules that normally apply to all the other administration officials don't apply to the president and vice president there's nothing to stop him from continuing to hold this after he becomes president and he used to look at the stop market. >> mark to market. >> now he can look at the stock market and his own stock to see how he's doing. >> it will be fascinating if that happens thank you, robert frank, bob pisani as he head to break, our road map for the rest of the hour the s&p up about 10% so far this year is there more room to run for the record breaking market

plus the a.i. boom putting the nation's energy grid under pressure and the spring home selling season is getting under way. a number of home building stocks sitting at new all-time highs. how to play that groupith wrate cuts maybe on the horizon. as "squawk on the street" continues after the break. [ragtime piano plays] the adversaries are back!

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two more trading days left in the first quarter the s&p on pace for the best q1 since 2019 and on track for a fifth straight month of gains.

the next guest sees market vol volatility as an opportunity can the record rally keep going? joining us on mona is it too late to get excited about the rally? >> you know, look, i definitely think there are opportunities that will arise this year. any given year we know one to three corrections are the norm, usually the 5 to 10% range everyone is waiting for that correction to arrive we haven't seen it yet the s&p 500 has been up almost 20 straight lines since october 27th of 2023 we thought perhaps the fed would be a trigger they proved to be a supportive part of this rally they gave the markets what they wanted to hear they're looking at rate cuts still. but keep in mind fundamentally the story remains intact the economy is on a good track we see fed cuts coming some time this year. and inflation while bumpy looks

like it's headed in the right direction. >> but the valuations where they are what does that mean? >> it's stretched but in parts of the market. the magnificent seven trading 27 to 30 times forward earnings but the s&p is closer to 15, 16 times forward earns. so there's an opportunity when interest rates are headed lower, valuation expansion is part of the story. >> if you go wider than that, small caps, even abroad but particularly domestic small caps, the gaps are bigger it's always the conversation equal weight versus overall s&p. >> we think small and mid caps in particular have room to run here those indexes in particular, those parts of the market, were held back because they are highly leveraged, have more floating rate debt now if we start to see the story

reverse, interest rates moderating, the small cape is first. we think it's an interesting way to play that rally as well they are less levered and have the scope for expansion if the economy moves higher as well. >> i wonder what the next catalyst is. we get a pce report on the day the markets close on friday. but it's february data and powell derisked the february data the following week we get jobs, second week of april we get cpi. what do you think matters most >> i think people will be watching the inflation data carefully. i don't know if friday will be as important as it might have been had january and february not happened for cpi already but i think the april cpi data will be key. the fed has told us it will be a bumpy path but they're not sure if january and february were bumps or a new trend so prilapril will determine thao us and the labor market is a key

part of the story, too >> delivering alpha survey, nobody is expecting zero rate cuts if there are zero rate cuts does the market fall out of bed >> we went to six to two without much of a move in the market. >> market went up. >> so i think the market is braced for the rates to be up. so maybe some volatility but an opportunity. >> feels like if we have the promise of rate cuts in the air, is it buy the room or sell the facts? >> it's not only the fed it's global central banks. but that being said this is an opportunity for markets and think about capital markets on, ipo, m&a activity has been so stagnant, so that could change in the next year or two as well. so this could be a good

opportunity for markets and capital markets broadly. >> we certainly see that some of the retail meme stocks, bitcoin, thank you. >> thank you still to come this morning, apple is out with the date for the worldwide developers conference where that could reveal the long awaited a.i. strategy and consumer features talk about that stock up more than 1.5% this morning when we return they're waiting for you. hey, do you have a second? they're all expecting more. more efficiency. more benefits. more growth. when you realize you can give your people everything, and more. thank you very much. [applause] ask, "now what?" here's what. you go with prudential to protect, empower and grow. with everything you need to deliver, you guessed it... more. one more thing... who's your rock? learn more at prudential.com rylee! from rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light.

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shares of carnival moving lower. the cruise operator raising guidance but warned it was calculating the expected hit to profit from the baltimore bridge collapse we'll talk about this with the carnival ceo saying in part this has been a fantastic start to the year we delivered another strong quarter that outperformed guidance on every measure, while concluding a monumental wave season that achieved all time high high book volumes at considerably higher prices we'll talk to josh about supply and demand and what the bridge

collapse means because they sail two ships out of that port. apple set to hold the worldwide developers conference on june 10th as the stock sits in correction territory, down 10% from recent highs bouncing back today, back above the 170 handle. steve join us on what's riding on this event. steve my first question, do we know this is definitively focused on a.i. or could there be other things? have they been explus sieve about that >> we don't know definitively, but i'm going to show you a tweet from apple's marketing boss after they announced the date he tweeted the wwdc is going to be incredible he did the donald trump thing that he capitalized the a and i in incredible. a lot of people are weighing

into that. and look, that's a huge pressure on apple, some of it self-inflicted, to really tell a good a.i. story as its peers have been lifted up on this a.i. boom we know where meta stands on a.i. microsoft stands on a.i. google stands on a.i we just don't know what apple's position is other than they're pointing to prior products and recasting them as artificial intelligence when they hadn't necessarily before we got those reports last week there might be some partnerships that they would involve google's a.i. product called gemini over in china where google is banned they would use binu. of course we'll get updates to the platform oss, iphone and ipad and so forth.

but it hinges on what the a.i. announcement is. and spinning forward, let's talk about september. over the summer we'll get an idea of what a.i. features everyone will get or all apple users get and in september, to sell more phones they have to make exclusive a.i. features really brand it as an a.i. phone in order to convince people who may have waited a little bit longer >> it's fascinating to see that year-to-date snapshot, no doubt synced with this a.i. topic when you see how far ahead nvidia is. when you see the short term event where expectations are often you go into the product event and the hype and the needs to deliver with something amazing with a new iphone is there. because of this sort of skepticism around a.i. could they surprise the market with something positive. >> they have to. tim cook in his own words said apple will break new ground in

artificial intelligence to me that means something we haven't seen before what that looks like, i don't know i'm wondering what it looked like ten years ago with samsung, wondering if they can do the same thing with a.i. we'll find out. >> it's ironic the doj is accusing them of having no competition. when they're in the fight for their life on a.i. with everybody else. >> that's exactly it. >> that might be dramatic but that's the competition right now. >> it's interesting to see in the audience on the tenth whether the features are met with questions, what are regulators thinking about that one? important story. as we go to break, look at the biggest gainers, merck is up the most followed by intel, verizon and boeing meantime, kristina partsinevelos in austin, texas today looking at the next big thing on the horizon for the a.i. boom.

>> reporter: when you think of the next big thing you think nvidia but companies are spending billions on in house labs like this one how eylatoomteth pn cpe, dethrone, steal market share away from nvidia that's next. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

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and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. welcome back i'm pippa stevens with your news update. the search resumed early the morning for the six construction workers still missing after the francis scott key bridge collapsed just before 1:30 tuesday morning. the national transport safety board chief plans to go aboard the cargo ship with a team of investigators today as part of the probe into the dy isdisaster in georgia, lawyers for the three white men convicted of killing arbery arguing past

statements didn't convey a racist intent to harm him. they were charged with chasing him through streets before one of them shot him. and richard serra died at his home on tuesday. he was known for turning curving walls of rusting steel and other materials in large pieces dotted around the world he was 85 years old. a sharp uptick in data center demand is causing a strain on the energy grid. eqt, one of the largest supplies of nat gas in the u.s. toby, good to have you here. a lot written how finding new energy is the number one

obsession of big tech. is there a grid crisis in this country? >> well, this is something that has caused people concerns, looking at the energy security of our grid. this was before the demand catalyst from a.i. when you look at some of the issues that we faced with texas, one of the root causes the grid security we have is completely dependent on intermittent sources like renewables. this is what happened when you rip out reliable sources like coal and nuclear and prevent other reliables like natural gas. so if we want to fuel the biggest technological boom that's coming with a.i. >> no country has ever produced as much as the u.s. is producing right now. >> this is a talking point you hear in d.c.

we will be telling you that frat has been blocked, challenged and opposed and a data point is looking at the pipelines we built. we built fewer pipelines last year than we did in the last 30 years. people will say it can't be that bad because we have recordm amounts of oil and gas production look at the world around you, inflation, war in ukraine, emissions are skyrocketing, energypoverty now increasing the question we should be asking is is the industry doing enough and clearly we need to do more the good news is we have the resources here in america. this is what made america the energy power house in the world and we are throttled back. if we unleash energy we can create more global emissions, providing security to our allies and ourselves and powering the boom that's coming. >> are you eluding to criticism that you have about the president's recent pause on

natural gas exports? >> the president's new l&g pause is another example of the punitive actions this industry is faced with. executive orders, regulations, interpretations by agencies. you can look at the reaction that people are having look at the ll&g pause there's reason the administration wants to put it in the rear view mirror, it's unpopular and look at the bipartisan push back taking place but look at what the people are saying people say it's driven by politics in pennsylvania there was a poll that took place a couple of weeks ago and they asked pennsylvanians would you fire biden based on his decision to do this l&g pause or reelect him? by a factor of 2 to 1, pennsylvania voters said they would fire biden based on his decision to pause l&g when you

pause l&g you pause our ability to keep energy prices low for americans. >> i'm interested, toby, on how plentiful you think the supply is over the next decade or two if the necessary infrastructure is built infrastructure domestically is one thing but for europe who has voracious demands if the supply could reach them, is there enough supply to feed those things that are being untapped at the moment? >> yes, we did the work thanks to the shale revolution which transformed america from being energy d energy department to being a power house. we 'done the work, we have the ability and resource in this country to quadruple or exports which would translate to

incremental almost 60 bcf a day of surplus energy we can create here to use for l&g or a.i it's a tremendous resource, how big a deal it is, 60 bcf a day doesn't mean a lot to the normal person but it's the equivalent of 10 million barrels a day. that's like adding saudi arabia worth of energy that's a decarbonizing force and continues to drive american influence around the world. >> not totally clean less dirty energy is a more accurate way to frame it i'm interesting what you think of gas prices, below 2 bucks on the screen that i'm looking at when i come from europe and the price is many multiples higher if and when it's there for exports to europe, will those prices close up and will it be with more supply coming online here as well, will it be prices coming down? >> i think we need to address the concept of less dirty than

other forms of energy. when we're talking about how much natural gas demand is needed if you care about emissions it would take 170 bcf on a day of natural gas to replace foreign coal if you care about social progress and environmental justice it requires another 120 bcf a day of natural gas to replace the people using bio mass as their primary source of energy so this is something that's going to be a major decarbonizing force and something to lean into pricing, this is probably the most important part of the conversation one of the reasons plans are failing is they need to be energy transition plans that are good for the people, planet, and profits. we can put the natural gas on the doorstep of europe for less than $12 that's assuming we can get the

infrastructure built to happen $12 energy is the energy equivalent of $70 oil. you can build great economies on $70 oil. it's the energy equivalent of $24 oil and americans would be excited about that pricing because average natural gas price has been $4.50 so we have an opportunity not only to help people but to help the planet because this natural gas will be a decarbonizing force. this is the biggest one on the planet that the united states has in its control and those price levels our industry can generate modest concerns which means it's good for the people, plant and good for profits of the businesses like eqt that will bring the solutions to the world. >> toby great to get your take we'll talk about the grid more nec time. >> thanks a lot. sticking with the a.i.

theme. kristina partsinevelos is down in austin, texas today looking at how big tech is looking to unlock a.i.'s next horizon >> that would be custom silicon chips you have short supply, high costs, so you have companies trying to create their chips in house that's why i came to aws to see what guys like this -- you're building what? program and hardware something important that's all we need to know. they've been working on chips for over 11 years to not only compete with the chip makers out there but also drop the reliance on companies like nvidia google is doing the same, they have their own tensor processing unit and it's gaining in popularity listen in. >> they're seeing tremendous interest and demand for my customers using them significantly internally for

in-house machine learning workloads so the gemini models are all trained and served on tpus. >> interesting they're using their own chips. nvidia is making the competition fierce because they're planning on launching new chips almost every 12 months, amd is going to follow suit. but it's not easy for megacap tech companies to compete. i say that because six researchers from yuuniversities around the globe discovered a security flaw in apple's chip. and microsoft has been working on its chip for years and only recently announced it to the public aws and google tell me it's about providing their customers with the best option but a lot has to do with steering their own destiny so they're not as reliant on certain chip companies. back to you guys.

lovely to see you. kristina partsinevelos there for us still to come, home building stocks touch new highs b cutan the names sustain a rally amid a tightening housing market. back in three. ♪ (orchestra del teatro alla scala, milano) ♪ ♪♪ ♪♪ ♪ (upbeat music plays) ♪ ♪ ("dog lamp samsung string & tins" by ned wolfgang kelly) ♪ ♪♪ ♪♪

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god at a news alert on disny this morning >> a busy week with the central florida tourism over sight district ending litigation between the two. saying it serves the interest of all parties by enabling significant continued investment in creation of thousands of direct and indirect jobs. so disney can move forward with more parks in florida. this is separate from the federal free speech lawsuit the company brought against the governor over the opposition of

the so called don't say gay bill it all comes ahead of the meeting next week. the spring home selling season is under way with a number of stocks selling all time highs joining us to discuss top picks, housing analyst, jay mckandless. thanks for joining us. i was looking through your recommendations for the bigger names, kb, lanar, toll, it's hold hold hold. >> it is i'd say our concerns about mortgage rates staying high is one reason we're sidelined and i would also say if you look at the stock price performance in the back half of 2023, they priced in good news, seeing good news now but still worried about where rates go the rest of the year. >> talk to us about a couple of buys you have. it's more specific plays lansy first of all. >> first it's a name trading

below book, expanding into florida and texas, the areas people are moving. we like that name a lot. they serve an entry-level buyer so that's a smaller cap name we think people should look at. >> so that sounds like a regional play as well. talk to us about builders first and flaal player as well >> the one thing we're positive on is we think single family volumes, rather for sale or rent, go up in '23 versus '24. 75% of builders revenues come from that single family business we also think they're growing in repair and remodel, which is about 12 to 13% of their business we think they have multiple avenues for growth this year, and that's the name we like the best, because we think the volume of homes, single-family homes is going to go up in '24 >> just on your thesis, jay, hasn't that been the mistake for home builders to focus -- for home builder investors to focus on high mortgage rates instead of low supply, which has really been the driver of price gains

and plenty of activity for the home builders, not to mention the tremendous double-digit run-ups in the stocks? >> yeah, and it's one of those things where, if the supply problems don't get better, then, yeah, we're going to look wrong for being cautious right now but i also think that with these mortgage rates where they are, and i think -- we think the likelihood that they go down is pretty low at some point, it feels like you're going to price out more buyers than are able to own a home, so that's the reason we're being cautious right now but the lack of supply has been a tail wind for the group, really since the beginning of covid. >> jake, great stuff thanks so much >> thank you >> as we head to break, check out shares of cintas, the uniform company based in cincinnati, ohio, hitting an all-time high after the company raised its forecast on stronger

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welcome back shares of robinhood rising quite significantly. it's pared back some of those gains, 3.6%. it's on news they're getting into the credit card space kate rooney is here with us on set with more on that. kate >> wilf, great to sea you. so this is robinhood's latest move beyond stock trade. the brokage firm is out with its first credit card. the gold card, it's been targeted at members of his subscription product it comes with 3% cashback, 5% cashback when a card holder books travel through its new portal, and rewards points that can be transferred into a robinhood brokage account. that rewards structure is better than apple, better than sofi, which had been leading in the space with 3% and 2% cashback respec respectfully ceo of live tennive was asked about that he said one aspect was to drive more subscribers

those customers tend to be more active and spend more on the platform they'll also make money of interchange. but yesterday we got news that visa and mastercard planned to lower that and cap those rates that could crimp upside for a lot of the other finteches there's consumer credit risk in all of this. the launch comes at a time when delinquency rates are ticking up >> this strikes me as not just a bad idea, but a desperate idea to drive subscribers it's such a different business model to what they do. even when a bank like goldman sachs gets into credit cards, they can cscrew it up. robinhood doesn't have any of that background, and will it really drive subscribers to robinhood, if you're framing this as a high-end rival to the sapphire the people that use that, they're not going to trade on robinhood. >> marcus is a great cautionary tale you would wonder if robinhood has the experience they have claimed that they have hired people they have specialized in the consumer, in that app experience they have the chops when it

comes to consumer offering it might not be credit, but they have excelled at getting people to use the app and drive usership, at least at least in terms of what you asked about -- what was that -- >> i didn't really -- >> but you made a good point that i wanted to -- >> whether it drives the subscriber growth. >> okay, that's what we're talking about. they have actually tried to steal market share from american express. and you've seen it with the transfer amounts that have actually been higher it's about $100,000 on average they're trying tyke market share from the charles schwabs of the world and graduate beyond it being a couple hundred dollars in your brokage account. they're really going at the american express customer here, but big open question, if that's successful >> great stuff thank you. >> thanks! >> coming up, ceo carnival is going to join us n'gonyere. rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view?

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good wednesday morning welcome to "money movers." i'm carl quintanilla with sara ei eisen. morgan stanley calling for 100

basis points of rate cuts