tv Squawk on the Street CNBC April 1, 2024 9:00am-11:00am EDT
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soon. let's get a final check on the markets. it was kind of interesting. we were up over 100 across the board, and then the dow and the nasdaq -- and things turned around. we're now down about 11 points on the dow. nasdaq, still positive. we will do it again tomorrow as we head towards 30 years. i can't believe he mentioned that. 30 years of "squawk box." still love it. make sure you join us tomorrow. "squawk on the street" is next. ♪ good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber's back at post nine of the new york stock exchange. we kick off q2 at record closing highs. best start to a year since 2019 for the s&p. big week with tesla delivery data, disney's annual meeting, and a jobs number on friday. our road map begins with the
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playbook for q2. more upside? tesla investors saying good riddance to the first quarter, but the company is being hit with bearish wall street calls ahead of the delivery number that's coming this week. plus the disney-nelson peltz proxy battle, we're in the home stretch now. the media giant's crucial shareholder meeting just a few days away. let's begin with a new trading quarter after a bullish q1 for stocks. jim, you wrote this morning, overbought here. better a seller than a buyer? >> yes, we haven't been this overbought since the beginning of january, which was a kind of a rough time. i think that we do have very little actual earnings news. we have things that are very important. we got some spinoffs too. we got 3m spinoff, ge. they'll be very exciting. i feel like i don't like to buy it here. we are, for the club, are huge believers that the risk-reward is bad. we offer this s&p, the oscillator, as part of our package, and it has been uncanny
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in telling you when not to buy. and david, i know you're on assignment last week, but we have had a long-term -- >> tough assignment. >> we have had some -- a lot of power in stocks that are not mag seven. home builders. transportation. some auto. really good general industrial. >> that's being embraced as a positive. >> if you look at the charts, they're straight up. i'm getting concerned. >> even though when we began the year, many were hoping we would see this broadening of the market, and we have seen it. we've seen the magnificent seven reduced to a fab four. the areas you mentioned have been beneficiaries of a much stronger market overall, and so we have seen this broadening. >> but now we're about to have earnings. i don't know if they're all equal to the task. that's the problem. not right now. this week. this week, you can play, but i think we have a lot of stocks
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that have run in anticipation that the fed's going to cut, run in anticipation that profits are good, and so when you finally get that profits are good, so what? that's all. you moved up. magnificent seven, i love the broadening. we can probably stop talking about the magnificent seven. that was a good movie. >> those days are over. >> right. we're done with the mag seven. we're done with that. >> no more yul brenner jokes? what do we reference, the beatles? >> no reference to names that carl or i actually know? >> eli wallach. >> we know him. >> from brooklyn. it's time to move on. a lot of people are doing fab four. i'm tired of the monikers. tesla's bad. apple's is not so good. everything else is all right. and look, nvidia, well, nvidia's one of my favorites. >> yes. that, i don't think, is news for anybody. >> good. i wrote a piece this weekend about how he made fun of me when
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it was at $3. >> that was the subject of the piece? >> i never made fun of you. what are you talking about? why do you rewrite history like that? >> that's my ability. i'm allowed to have revisionist history. >> i never, ever made fun of you about nvidia, ever. i've made fun of you about a lot of things, but not nvidia. >> i just think that nvidia, super micro, they have some wind at their backs still, because generative a.i. >> micron, today, b of a goes to $144. >> micron is -- micron's such an easy play for it. so is arm. so's marvell. so's broadcom. they're just all ancillaries. when i look at that -- and david, we're going to talk about disney. >> they all had really strong first quarters. >> merck had a drug that turned on really big. american express had lowered expectations and they took them back up. caterpillar's infrastructure spend.
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and disney, what can i say? >> we're going to get to that as well. but does the a.i.-fueled fervor continue in the second quarter? >> that's where i'm struggling. i think it's been exciting. i like to use the one that i like to use is claude. i do everything with chatgpt. the question -- they put -- they solidified a deal. again, like, okay, we're just going to keep running on that? don't we need something new? >> what have you done for me lately? >> yes. >> they're working on five, chatgpt 5. apparently, there is a question now, i'm sure you guys saw this "journal" story today, about running out of data. running out of good data that you can actually sweep in for your large language models. >> i think that salesforce is going to be the one that this quarter has an edge. i think they're going to do big enterprise. that will matter. i think we have to hear something from apple. i was with some younger people
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who said, stop talking about the vision pro. it's in the closet. in the closet. >> already, it's in the closet? >> in the closet. wow. >> put away. >> interesting call out of loop capital today. they cut to $170. they argue, jim, that they see full-year earnings and revenue declining for the first time since 2016. >> well, i think that you don't have enough strong china. india's not big enough. i still think, own it, don't trade it. you get periodic valleys. this valley is a little -- it's not death valley. this is much more of a crevass. tesla was the valley of the shadow of death. tesla. >> wait, now? or --
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>> no -- >> we're in the valley of the shadow of at the time. >> the first quarter, that was -- it didn't do that well in the first quarter. >> no, it didn't. we're going to get these delivery numbers. >> tomorrow. >> people are saying that's going to be flat. apple and tesla, kind of definition of flat. >> probably not going to hit the 2 million car number that had been anticipated not that long ago. >> no. how about this? how about apple is the opposite of what i was just talking about? is there anybody that thinks apple has anything going at all? >> well, there are people very much focused on, as we continue to discuss, june and the developers' meeting and what we're going to get when it comes to generative a.i. >> we've got to see vision pro be written business to business. >> the tie-up with alphabet's gemini. >> when i was in san francisco, you were here. we talked about it. where's it go? >> i know. >> what happened? >> i want to hear your big d
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takeaways. >> it was like a month ago. >> it's news to me. audience of one right here. >> i was in the city of success, san jose. and where -- which had a million people. now apparently has 900,000. city of uber success. but look, i think that the main thing that you have to take away is that you have to have the omniverse, which is jensen, streamed to some sort of device. and that's how it works. david didn't realize when i was away about how -- because i know david's son, he's played ball. but one of the things i learned from the rotbotics guy that's i charge, i said, can a robot beat a pitcher? he said, all you got to do is feed all the movies of like sandy kofax to the robot, and you show them footage of each player, and he or she will pitch a perfect game every single time. every single time, the robot will do it. and you tell me that we're not going to be replaced by robots?
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>> i don't believe it. i don't believe the robot could pitch a perfect game. >> no, he had the data. >> he has the data. and they have the ability to throw at that speed and/or any number of pitches. >> whatever pitch is not hittable. the guy has that ability. the robot has the ability to learn everything about everyone, because they now do video. blackwell does video. you can see them how to make a martini. right there. this guy -- this is early on. this one can't make a martini to save your life. >> is it going to crack a joke or listen to your troubles? >> it knew how to respond, patriotis apparently, to shaken, not stirred. >> in a bond sense? >> that was the guy who said a perfect game every time. perfect game. even if he played for the mets. incredible, huh? you get that payroll big enough. >> we had a great start to the year so far. we're looking really good. >> and today, i think, wrigley's opening day. great time of year, jim, as we
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all know. >> good time to place some bets on baseball. >> at some point, i want to hear about your larger concerns about the development of a.i. >> i did come back a little more circumspect, because if you could read -- if it takes one second to read "moby dick," you might be able to come up with a different analysis about what books are good and what books shouldn't be read. that's what i was -- that was what i was concerned about. >> not to mention voice imitation. >> perfect. >> chatgpt. they haven't released it, and they may not, in the same they they didn't release a lot of the -- where you can create film. >> because of the incredibly dramatic -- >> my point is, all those deep fakes, it's only going to get more and more difficult to ascertain what is true and what's not. >> that's true. but i asked one of the people in a.i. out there, because i like manhunt, which is this really interesting series about lincoln and john wilkes booth.
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and could you get what lincoln sounded like? the answer is, no, he died a long time ago. >> tough for input. the other big dynamic of q1 was ratcheting lower rate expectations, cut expectations. did friday change anything, whether it's pc or powell? >> you don't need to talk about the fed. you just don't. >> that's going to be a new element this quarter. >> the fed is where you want to be able to make it so that, look, the next move is down. take the fed out of the equation. it goes back to most of the history of when i was investing, is that, the fed is -- fed's there if something goes wrong. otherwise, the fed is kind of,let buy stocks. or if interest rates were much higher. >> but no worries about energy prices, china manufacturing, pmi expanding again? >> china, look, ironworks bounced. housing's come back.
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i'm going to ask david a quiz, because he's back now. what's the average price of natural gas at the waha hub? >> below $2. >> minus 50 cents. costs more to store it than it does to use it. >> oh, boy. it's like that very brief period we had at the beginning of the pandemic. >> i think that you want to put in -- >> what did oil fall to? minus 40? >> that was for a second. this has been here for two weeks. if we're worried about inflation, natural gas is the fuel of the future. shortly. it's right now, too, a percentage of the -- we can do ge. we can do vernova. but how inflationary is minus 50? we don't talk about it enough. too busy talking about oil and the refiners, which are really hot, by the way. that's been a good group while you were away. marathon. >> minus 50 cents. i didn't know that. >> thank you, rusty braziel for that. you've got canada coming down. you don't have enough pipe going east. our whole system is screwed up.
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you don't have -- not enough offloaded to lng, and then oil, you want to take it up? we can do it. you can lower the price of oil by just drilling more. but you know. you know exxon. >> we're at all-time highs in terms of production of domestic oil. >> we could go higher. >> but the actual number is the highest -- >> they could take it to 14 million. >> okay. >> but they're just choosing not to, because they like a higher price. >> who's the "they" here? >> the oil companies. >> oh. okay. just making sure i understood. guys, when we come back, as we said, busy week with the latest on disney and nelson peltz and that proxy battle. in the next hour, disney board member carolyn everson is going to join us ahead of the big shareholder meeting on wednesday. we'll get to interesting q2 picks this morning that include t a es, citi, spotify. gofrh underweight tesla when we're back in a minute. ade, unlocking the power of thinkorswim,
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welcome back. we're counting down, and maybe you can too, because we're going to finally stop talking about the disney proxy fight in a few days, guys. we're going to get the vote. i think it's 1:00 p.m., wednesday, because remember, it's west coast, so the annual meeting. and they'll tally it up. you know, between now and then, you're going to be hearing a lot of different things in terms of where things are, but remember, the big institutions typically don't come in until the very end, and you can always change your vote if you choose to until the polls close, so to speak. again, 1:00 p.m. on wednesday. lot of lobbying between now and then, jim. we've -- >> yeah. >> -- covered it closely. you know, it does appear that it could be close. that's all i could kind of say at this point. calpers today comes out in favor of rasulo and peltz.
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you'll hear trian saying -- telling you that and talking about how positive a development that is. >> is there such a thing as momentum in these things? >> there is a little bit. >> there is? >> i think there is a bit. >> peltz has momentum. >> the argument from those who favor a peltz and/or peltz and rasulo is simply, what would be the harm in having a peltz on the board, helping to oversee potent potentially succession, for example? the counter, as we well know, jeff sonnenfeld was on this morning -- >> he's a one-man destruction team. >> rather vociferous in terms of his support ofdisney. but the basic argument is, listen, the stock is up -- by the way, one of the best performers of the first quarter. >> number one in the dow. >> number one in the dow. that is a result of the things that have already been done and will continue to be done in terms of improving the financial performance of the company, namely, drastically reducing the losses at streaming, in fact, getting to earnings before the end of this year. along with a number of other
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things, including raising a dividend, things of that nature, and that is because of iger's leadership at this point. and then, there's something i brought up a number of times, which i think is important, which is the idea, i think, that if peltz were to join the board, the real question is whether iger will choose to stay or not. >> don't you think that's a bit of a canard? >> yeah, i do, and it's hard to know how to view that, but i think it's a real possibility, that he would say, i'm out. >> well, i mean, to me, it's one guy. okay, two guys, but this is always the argument. i remember speaking with the procter people beforehand. jim, you don't know what one person can do. you don't know how much disruption there could be. and it's like -- >> you do as one board member if you choose to. you can cause a lot of disruption and/or positive disruption if you want to call it that. you have the right to meet with anybody you want at the company at any time, basically. right to go through anything, look at anything you want. i mean, that is a right as a
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director. so, you -- most board members, even now, go along to get along. i can remember -- >> that's part of the problem. >> i can remember conversations with any number of people, including the likes of, for instance, john malone, when he was on the at&t board and one of the largest shareholders. i was like, why didn't you speak up more? well, you know, i don't want people to hate me. >> my friends who have att right now are scrambling. >> the breach. we kind of lose sight of these breaches because they happen so often. >> wait until you see when you get the call. i don't know if you have one that's involved with a particular health care company. i got three calls on friday that could help my back because i had back surgery. it's, "we're from medicare and we're here to help you." you say, i'm going to the justice department, and they hang up. you call the number back, and it's not in service. three people, who had very cogent stories about what medicare was willing to do for
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me. >> yeah, this is a big one. nearly 70 million former and current at&t customers. >> they don't want your social security out there as much as you think. >> you don't want it associated with your name, address, date of birth, and everything else. >> i didn't mean to side track you on malone. >> i was just making a point about boards. >> we'll get to b of a's call on disney today as jessica increases her target to $140 or so. we'll get cramer's "mad dash," countdown to the opening bell, and get q2 under way. don't go anywhere. okay take a deep breath, it's all led up to this. the biggest night in baseball. in 1935, ge powered the first night game. and changed the way we see the game, forever.
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six minutes until we get started with trading here to start the week and the second quarter of the year. let's get to our first "mad dash" of the second quarter. >> classic piece out today by barclay's. they love crocs. they love skechers. they love on, on holdings, and you know, they got deckers has been an unbelievable performer, which is hoka. look at this, will you? what's not -- they happen to like nike.
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analysts didn't mention nike, but david, nike's been horrible. it's been a horrible performer, and people think these companies are taking share. and i agree with that. >> well, it seems hard to imagine they're not. hoka is a brand that came out of nowhere over the last, let's call it, few years. >> do you know that hoka was started basically on my show? i had it unveiled. it was like 2014. that was going to be the sneaker. it took eight years before anyone started wearing it. that's good. that's a sign that you really continue to put money into something that turned out to be a winner instead of just uggs. i think when the book is written on nike right now, we have to start questioning some of the deals they've done, selling some things that were very valuable. not being able to refresh -- >> they reported earnings recently at nike and talked about a return to innovation and brand focus. >> definitely. that's it. it's a return. the return.
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a lot of companies want to do that. i had walgreens on. they want a return to greatness. you know that? >> i've heard that. >> 3m wants a return to greatness. >> it's hard to stay great. >> it is hard to stay great. from good to great. that's fantastic. >> all right. we got an opening bell four minutes from now. don't go anywhere.
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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. bitcoin pulling back below $70,000 this morning, but the cryptocurrency's coming off that blockbuster quarter, up more than 60% in q1, extending its monthly win streak, jim, to seven. have we really turned the corner here? >> i think that when i had larry fink on last week, it was really kind of dawned on me how much people want a token coin to be able to go back and forth, how much people want ethereum, and the idea for an etf really changed things. there were a lot of people who
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felt, carl, that once the etf got going, people ran ahead of it, and it didn't. they're not going to sell it, buy it, store value. like gold, which keeps going higher. >> all-time high on gold as well. we'll keep an eye on that as we get the first bell of the quarter. down here at the big board this morning, it is the ronald mcdonald house new york, celebrating its annual stay with the greats. henrik lundquist doing the honors. at the nasdaq, esperion therapeutics, focused on medicine to lower cholesterol, jim, as we're really a couple hundred points from dow, 40,000. >> when i got up this morning, i was watching frank holland's excellent show. when europe is closed, we're buyers. i think europe kind of -- even though they're not down beat, i don't know if you've been watching the european banks. incredible comeback. >> really? >> incredible. remember when they were -- a
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year ago, when they were on their heels? >> well, you had one of them go out of business entirely. >> yes. >> credit suisse. obviously, that is now part of ubs. >> and the strongest one, santander. incredible. >> we've been talking about santander for many years. >> she's at the masters. i do not have an invite to the masters. >> yet. >> yet. but she is one of the great golfers, great women golfers in the world. but i think santander is -- that passed everything. i mean, the swiss banks, david, they turned out to be like the cuckoo clock. >> ubs is doing okay. >> "third man" reference. >> they've only got one bank there now. >> it's just not -- you don't want a bank there. i don't want a bank there. >> you don't? they don't want you anyway. >> no. even javers has done some unbelievable work. he does this stuff, and it's
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like, wow, i want to know more about it. there are people who have hidden hundreds of millions of dollars. >> we talked about the strength in citi shares last week. today, it winds up on goldman conviction buy, along with royal caribbean, jim, and b of a adds it to q2 picks. this is one of those cinderella stories. the whole group has been fantastic. it's the big rap against citi was, the book value is 80. why the disparity? that disparity is closing. this thing is incredible, up 24% for the year. incredible. >> i remember the year began, mike mayo, to give credit, came on our show and had turned quite positive on the stock. >> gutsy call by him. a lot of people piooh-poohed it. >> a stock up 24% in the first quarter. that call there for a long-time laggard, and still trades below book. >> oh, yeah. appreciably. >> yeah. >> but how about -- we were
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talking about charlie chscharf. wells fargo's been a bit of a winner. the banks are the broadening out i was talking about. i want to know about the efficiency ratios. at a certain point, we're going to find these banks really have used generative a.i. to their advantage. they take the companies that -- guys that are winners, and they give them to generative a.i. >> you think financials are a better signal of the broadening than materials, health care, energy? >> well, i think that wells, in particular, does well in a hi higher for longer. i don't want to discount energy, because there's a lot of problems with russia. the materials have been extraordinary, and i think a lot of that's infrastructure. spending for infrastructure is just aggressive. talk about broadening out. i mean, it's really hard, other than utilities, to find anything that's bad. we should be heralding this market and saying, let's put the fed on hold and talk about how the housing stocks are up tremendously, and that's because they've trumped the float
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dramatically. lennar kept buying, kb, they just bought. horton. look at that. we're in a fed -- in the most aggressive fed tightening schedule, and this group has been amazing. they've stood there and bought back stock because the stock is cheaper than land. there you go. >> it's worked out well. >> yeah, worked out well. i was with a group of people who were close watchers of our show yesterday, and they know dave and i hadn't been together, and they were saying -- >> are you okay? >> they were going to say, how mean is he going to be? i said, he's not mean, he just doesn't laugh at what i say. one young person said, he doesn't pay attention to what you say. >> that is not true. i laugh when you're funny. >> what did jensen huang say when i told him i was a dollar sign represented by a man. i said, that was supposed to be fun. and he goes, "super funny."
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laughed on the inside. >> see? i'm laughing. >> speaking of nvidia, needham goes up to $850. just the latest of target increases. >> nvidia is -- there are a lot of companies that are trying to get in on the nvidia act. marvell, broadcom. i keep coming back to the fact that nvidia has this blackwell, this new iteration that jensen told me -- jensen huang -- told me that andy jassy would buy every one. zuckerberg. every one. every one. they're all -- they're not even out yet but everyone wants allocation, because these things are able to think. you could have a hundred brilliant people, and these machines are dismissive. >> they need -- those companies need this platform, right? is that the way we describe it? >> platformization. >> it's not a chip. >> it's a super computer. >> it's its own super computer? >> it's a super computer.
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>> it's this big? >> knows every language perfectly. >> they need them to power all these models, right? >> yes, well, that's why i said that there are -- their omniverse merged with apple's vision pro, would be the single greatest -- >> you keep talking about this. we're going to be hearing about this -- this is going to be, like, new mexico is where disney need to build the next theme park. >> they should have. could have saved -- >> enough. stop with the vision pro and the -- >> when i renamed my dog nvidia, the stock was at $30, so i rest my case. the prosecution rests. >> i bet you disney is also higher from the day you talked about a park in new mexico. so, there is that. >> there is. >> that park in new mexico -- >> one day, carl, it's going to happen. >> 300,000 acres. i could have crushed it. >> i know. >> the b of a, jessica does go to $145, in large part on parks and momentum. it's a big part of the value
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slide deck as well. >> i'm waiting for david to talk about the other side of comcast besides the parks. >> we have another part of the company other than parks? we should be talking about the parks. >> yes. $60 billion investment is a big deal over time. >> it is, yes. yes. >> i think it's huge. >> yeah. >> more parks. we need more parks. we do. >> as in, overall or for our parent company, comcast? the parks are part of the nbc-u. >> if i were disney, i would -- they don't talk enough about more parks. >> this, to carl's point, they're investing an enormous amount over the next -- >> this is a very good piece. i thought jessica did a great job on that. underlying momentum. didn't talk that much about what peltz has done to it. not like sonnenfeld, which i'm regarding as -- that he's coming out negative on peltz. what do you think? >> sorry -- >> sonnenfeld, coming out
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negative on peltz? >> yeah, i think we know where he stands. i think it's made it clear. >> it's like -- it would be almost if you were running a munitions company and you decided not to make munitions. a defense contractor. you put peltz on, they're not going to do it. it's like stark industries. >> some of the early gainers, jim, some of the macao stocks, we got a post-covid high on data. >> wynn has two casinos there, and vegas is sold out. often, i think that this is the precursor to a turn, because that means that they're spending again. now there's a lot of stocks that they started spending, we know starbucks, which has been a disaster, you follow that. my trust owns it. i talk about the good ones, wynn, but starbucks has been terrible. >> it has. >> but there's a -- we got an upgrade today, starbucks, you know? tactical. there were a lot of tactical things today. >> you feeling any better about it, given that update, jim? >> i think people know how
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horrible it is in, and the unit states is doing bad numbers. once everybody thinks there's something bad, it's a tactical buy. wells fargo. are you thinking that schultz is going to do a proxy fight? is that that face? that's the schultz proxy fight. >> that's an interesting thought. >> wouldn't that be interesting? >> yes, is that just coming out of nowhere for you? are you trying to tell us something? >> laxman narasimhan is stuck with the bad u.s. numbers, but i think china is making a comeback. yeah. yes. >> they have so much competition there, don't they? >> david, the other guys' coffee tastes bad. >> that could make a big difference. >> yeah. give me a triple venti cappuccino during the commercial, will you? >> sure, jim. >> downstairs, we have a new caf. >> yes, we do. djt. you want to talk a little djt? >> be my guest. knock yourself out. >> we were talking about this, and everybody else has followed talking about it, haven't they?
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sl shares of trump media and technology group down about 7.8%. it's very active. quite volatile. the stock has closed above 60 bucks. that's four trading days. today, i believe, would be the fifth. and recall, if you will, tmtg, 90% controlled by former president trump, owns some, let's call it, 78 million shares. there's another 40 million that i have been talking about, and 16 -- i15 more trading days, an he's going to get those too. all you got to do is stay above -- >> are you thinking that the board will unlock it? >> there's a question as to whether he can receive the necessary waivers that would allow him to potentially sell some shares. it doesn't appear the need is as great any longer, given the reduction in that bond number in new york, which has come down substantially, and so, one would
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anticipate he could find other ways to meet that. that said, when you're sitting on -- i'm using 204, let's call it, a little over 200 million fully diluted shares. when you include warrants and converts, and that gets you to, you know, over almost a $12 billion market value. this, for a company, we just got an amended ak this morning. they did $4.13 million in revenues for the year ended december of last year. >> the last 12 months earnings per share, interesting. >> they lost $58 million on that. >> yeah. >> now, it was up substantially. they did $1.47 million in revenues in 2022. so, a significant increase in revenues, primarily the result of enhanced early stage testing of a nascent advertising initiative on the company's truth social platform. advertising revenues were $4.13 million for the 12 months that ended 2023. i wanted to point out the warrants here as well, because
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that's an interesting part of the story also. they trade under djtww. they're at a significant discount. they're at $11.50, the warrant. so, why? well, you can't set it up because you can't short djt. there was a borrow some people had. they're paying enormous amounts for it. but right now, basically, almost impossible to borrow. and so you can't sort of lock in that arbitrage, conceivably, on the warrants. but something i wanted to point out as well. we'll keep an eye on these shares. >> when's the option start? >> i don't know. you know, the registration rights, 30 days after the close for, i believe, many of the warrants. jim, i don't know what you say about the fundamentals here. it's going to be interesting to watch as the election yearmoves along, and this is a way -- you know, this has created enormous paper wealth for donald trump. >> well, i think that what people are using it as, some as
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a keepsake, and i think some of them are using it as another way to fund a campaign. you buy some of that, maybe you make it so there's more money for the campaign. it's an easier way than donating. >> if he can begin to sell shares at some point to finance his campaign. >> back-door campaign finance. >> there's not much of a float at this point. that may change over time. that will change over time. >> david, the board is not as independent as -- >> no, it's controlled by tmt. >> carolyn everson might be a good person to ask about that, your next guest at 10:00. >> why? >> she understands advertising. she understands the media. she understands whether this is a stillborn or maybe it's the beginning of a new era in streaming and -- >> i don't know. i don't have an answer for that. >> i don't know. >> i can only give you the
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$4.13 million in revenues. >> and less than a million dollars in q4. less than $1 million. >> doesn't really have the momentum. >> not accelerating timothy. >> well, the fact is that if he can get -- if president trump can get his hands on that stock and sell it, holy cow, those nine battleground states, look out. >> well, also -- >> billions. >> if former president trump were to win the election again, and use this as a way he communicates, which he very well might, then it would conceivably enhance its overall value. >> we're back to the emoluments clause. is that what the next four years would be about? >> i think so. i wanted david to comment on letter x, because i think that trying to figure out the valuation of letter x, david. >> letter x is united states steel. >> well, that too. but twitter, i was thinking. >> you were? >> yeah. >> oh. why would you want to discuss that? >> well, because there are people taking writedowns on the valuation while you were away. >> that's because it's worth less than half of what he paid. we all know that.
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>> that's a bad investment. >> so far. >> let's talk about letter x, nippon steel. >> we got to wait there. they're going to work it, trying to get the unions to sit down with them, at the very least. the unions seem to be completely and totally cleveland-cliffs, but there's real questions about whether cleveland-cliffs could complete a deal, given antitrust. you're left sort of waiting. there may be a hope that they can wait out the election, too, although, very much unclear what it's going to mean for the prospects for that deal, particularly given president biden saying that he opposes it. >> there's an unrealistic nature of a lot of deals. i mean, where is right now, kroger-albertson? you see kroger stock? i think it's acting as if there's no deal. the quarter was fantastic. rodney mcmullen is putting up fantastic numbers. >> there was a good op-ed in "usa today" on thursday, titled, "let the deal happen."
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saying it's not the same pool of players it was 20 years ago. >> i had rodney on. he said, we have to compete against costco and walmart. those are number two and one. it's hard. those companies have such scale. >> they're going to be able to make that case in court, and they seem to be confident that they can prevail and that their divestiture package should be enough to meet the -- >> i think you have to decide what the the universe. what's the universe of companies that are really involved? if it's, you know, if it's wegman's -- >> that's one dhthing. but if it's costco and walmart, even more specifically, it's another. >> walmart has just had such a good year. buying back a lot of stock too. uh-oh. breaking news. look at that. weaker. buy. >> let's get to pmi ahead of sam data at the top of the hour with rick santelli. >> hi, carl. large final read for the s&p manufacturing pmi. we'll have ism's pmi shortly,
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but this was 52.5 two weeks ago. it drops down 51.9. that makes it the second best of the year, outside of 52.2, but the issue here is, it still does remain the third read above 50, but moving down, wrong direction here. we will have construction spending, and assi i said, ism i is at the top of the hour. interest rates are higher across the curve, but the curve is steepening, meaning short rates aren't up as high as long rates. that's the aftermath of some of the data points on inflation that were released on friday. "squawk on the street" will return after a short break.
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take a look at what we have coming up tomorrow at 9:30. larry culp of ge and the ceo of ge ver nova going in -- >> by the way larry told me when she spun off vernova it was going to be ready and that's right. vernova is going to replace esg stocks in people's portfolios. >> look forward to that 24 hours from now. a look at what ge has done in the past year. split market, dow down 150, s&p holding fresh all-time closing highs. stop trading with jim is coming up next. trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders.
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it's time for jim and stop trading. >> if you're going to get mag seven, nfab five, super for you you need wells. amazon's numbers are too low and does point out that generative ai and they have the position will matter, but there's just -- the advertising business is on fire. that's the story. they're doing more than $50 billion run rate.
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that doesn't cost them anything. >> there's another q2 pick on behalf of wells this morning. >> i think that piece should be read. it should be read because it reminds you why you're in one of these stocks. the number of options they have to make money -- >> speaking of some of that we did learn that fedex failed to renew their service contract with the u.s. postal service. >> ups is down too. people, look, the long ones are out and people don't like it. fedex had an amazing quarter. if he didn't want that contract that contract is a loser. >> this is a very exciting night because i have jack hartung the cfo of chipotle, instrumental in wanting the split and there's many companies that should split, and then david klein, i've not really touched the cannabis role of late but that stock is up 55% for the year. and i think it's time to start talking about it again. cannabis. >> start talking cannabis again. >> cannabis. >> okay.
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>> what he does, everyone saying, like he listens but didn't really listen. >> i listen. i just repeat. >> cannabis. >> there you go. >> i want to make sure you really mean what you say. >> super funny. >> like plastics, how do you mean? >> super funny. laugh on the inside. >> i got it. >> canopy is an interesting company. that whole group is working. even though maybe it shouldn't. >> look forward to it. a solid week ahead. >> yes. >> 6:00 p.m. time. when we come back disney's board member carolyn everson on the proxy fight with nelson peltz and wednesday's board meeting and greg maffei. the future is not just going to happen. you have to make it.
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quintanilla and david faber is back live at post nine of the new york stock exchange. take a look at stocks on this first trading day of the second quarter and we're marginally higher on the s&p 500. tech is leading. we have the nasdaq up 0.5% and the dow down 120 points. a little bit ofa discrepancy there in terms of what's working. take a look at treasuries the first market reaction post-pce number on friday when the market was closed. that came in pretty much in line with expectations. 10-year yield firmer 4.3%. more data, the 2-year yield 4.68. 30 minutes into the trading session, here are some movers we're watching. at&t says it's investigating an incident two weeks ago that led to millions of its customers' data being published on the dark web. the company has reset the pass codes of 7.6 million current users who were impacted and said it is actively contacting them along with 65 million former customers whose data was compromised. ups striking a deal to become
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the primary cargo partner of the u.s. postal service replacing fedex which was the postal service's key air-based partner for the past 22 years. shares of both names are lower this morning. we're watching disney shares today. the company's proxy battle with activist investor trian coming to a head this week with shareholders voting wednesday. we'll talk to a current disney board member about what's next later this hour. >> yields inching higher not just on pmi but ism. back to rick santelli. >> propping up here, and it is the construction spending side of it. we did read on february construction spending not the one we were expecting. we were expecting up 0.7%, almost .75%. we end up with a drop of 0.3%. the biggest negative month over month change back to october of 2022. here's the reason rates are moving up.
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ism, march reads. pmi's manufacturing, 50.3. it breaks a streak of 16 consecutive reads under 50. 50.3 is the best read since september of '2022. 55.8 on prices paid, moving in the wrong direction, higher than expected, higher than the rearview mirror. 55.8 the highest read back to july of '22. in this instance that's not really a good thing if you're looking for prices to moderate and give credence to the fact that we're still pricing in a cut in june, despite the fact that we didn't get any backup in the inflation data. i was here releasing on good friday. new orders, 51.4. pops above 50. it's been up and down. but most of last year if not all of last year was under 50, so here we go again. january the outlier at 52.5. we're back.
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now the final read on employment before we get the jobs report, 4.4, roughly in line with expectations. we're new orders better and popped over 50. the employment remains under 50. now how many is this? this is six in a row under 50. 47.4 would be the weakest level going back to 47.5. i do want to point out that at 4:30 we're up 10 basis points, 2s at 4.68 are up 5 basis points. the steepening of the curve gives credence to the notion the market is unhappy with the sticky inflation, long rates, and issuance remain a big factor. back to you. >> thank you very much, rick santelli. kicking off what is going to be a busy week of economic data for us here, rick just mentioned better manufacturing numbers. we're going to get a lot of data, including the jobs report on friday. the government report.
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it means we'll get the adp private sector read on employment and we are eager for march data because a lot of economists are looking at january data, an anomaly and february was a little bit back to trend, but not fully back to trend, and so we wait march data. we're going to have earnings, and we get the big proxy vote on disney on wednesday. janet yellen, the treasury secretary is traveling to china this week and actually ian bremer of eurasia group mentioned it's the geopolitical silver lining for 2024. u.s.-china relations are more stable and better managed, not more trusted, than they've been in years. >> do we know what her agenda entails? >> she previewed it with a speech in georgia last week where she was talking about essentially dumping of solar panel and evs, so worries from the u.s. administration about what china did with steel, over
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produced and over capacity and flood the market, and without a lot of demand. this is what china does. >> there's a worry around the world and many other markets as well, evs being one in particular, lack of domestic demand in part, over production to your point, and, therefore, just cutting prices. >> they it supply stimulus they don't do demand stimulus. that specifically on environmental -- on the environmental angle with flooding the market is a point that the administration wants to focus on, with evs and solar panels in particular, and the question is, how is it going to be received? it's a good step she's going. this is one of a number of trips she's made to beijing and going to be meeting with premier li and comes after a key meeting that president xi had last week with american ceos, a select group of them, as they tried to court investors and business. they're still dealing with low foreign direct investment, a weaker economy. we did get numbers overnight
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that were encouraging on the china manufacturing front. we saw a pick up. in fact the most was a private sector manufacturing read most in a year. good news, market rallied off that. look at the first quarter. we made a chart of all the performance in the first quarter of everything that matters. the nikkei in japan, which was the star performer, the u.s. s&p 500, the smci world. these were up. what lagged was china. the only one if you look at china at the very bottom here, that was basically flat or lower. everything else, and i put in oil as well for the orange line to show you the kind of pick up in momentum that we saw across assets in the first quarter. that's our setup. that's where we start the quarter. mostly a good one. i didn't put bitcoin in there, gold. >> gold has hit new highs as we pointed out. crude is edging lower. china is an interesting one for
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so many different reasons, as you say, not to mention, of course, we continue to keep an eye on tiktok and the movement of the bill in the senate, the house bill in the senate, and what will happen there in terms of a potential ban that has the also potential of ratcheting up tensions with china. >> absolutely. and their view that the u.s. squashes or bans the chinese companies when, you know, you could make the argument, though, that we don't even allow -- they're not allowed to have our big tech companies in china. >> they don't allow alphabet to operate there at all. >> it's difficult. i want to hit the pce numbers that we got because the only really negative surprise there in terms of higher inflation came to a joe bidenry revision, revised up to 0.5%. however, core, we did core. this is what fed pays attention to. it's come down. we have 2.8% on a 12-month basis, so we're making progress,
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it's slower progress than the end of last year but better than the 2.9% which is where we were the month before. powell did initially respond so investors don't have to leave it up to their imagination because he was speaking at the san francisco fed on flyriday and sd as far as this data point it's not as low, but it's more along the lines of what we want to see characterized the process to 2% as bumpy, and pretty much echoed waller in that we're in no rush. they're in the wait and see mode on a few more prints of inflation that they want to continue to see good progress before they start cutting rates. the market view at this point they're going to get -- the next big one cpi on april 10th, next wednesday, they'll get march, april, may data, will it be enough to cut? market thinks so by june. >> we'll see. bofa suggested powell maybe sounded less hawkish than waller did on friday. it is the beginning of a new quarter. the dow and s&p coming off fresh
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highs as you know. best first quarter since 2019. big tech did see weakness, negative returns on apple and tesla. with more, our markets commentator mike santoli as we get this quarter started. >> hey, carl. if you go through all the superlatives about how the market did behave in the first quarter it builds, one of the more persuasive bullish cases based on the behavior itself. up 10% for the quarter, up five straight months, no 2% pullbacks. just how broad the rally and rotational that we got, all that stuff tends to mean it's not an ultimate peak. higher prices in the months out is the historical pattern. the issue it's unlikely to be as uniformly strong without any air pockets along the way based on the probabilities. every time you had a 10% up first quarter, the smallest pullback in the remainder of the year going back like 80 years is
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4%. you do get some normal refresh. the other piece the market has been able to feed off this benign macro fundamental earnings path and that's to the good. it's happening for the right reasons. but you have to be aware of anything that deviates from that. we have 10-year yield at 4.3 again and we'll hesitate in the market. we made a new high four of every ten trading days last quarter. that would be a record pace essentially. it's one of those things you don't fight the tape, but you're aware it's been a little bit better than it's going to remain at least in terms of the consistency of gains. guys? >> the time frame of april-may has been uniformly almost nine out of ten positive? >> it has. it's, obviously, at least a tailwind, although we've been so much stronger to date than the seasonals would have told you in the first part of this year, that you wonder what to make of it. i do think there is -- one thing i would be watching is, the next time we get a 1, 1.5% pullback
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from a high, does it immediately get bought again? there's been essentially a race to do that, the vix ticks to 15, get down 1%, and essentially people think it's free money and so you have these sort of systemic buy programs on the dips. we'll see if that continues in here, if we get a little turbulence from the bond market or something in the data. i will say the earnings estimates over the first quarter were revised lower at a reduced pace. they always go down, but they went down this time less than average. that's still a positive. we'll see how that sets the bar for once the reports come through. >> one last thing, mike, page one of the "ft" looks at the wave of bond issuance in q1 and corporates that are frequent issuers and quote morgan stanley here that mindset is let's get this done in the first half. >> yep. >> it's an early sign of trying hedge election volatility. >> and just, you know, sort of capture very, very tight credit spreads and essentially a very
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generous capital markets. that's really a benefit. you're rebuilding the war chest. buybacks will be strong. what we have started to see is an uptick in equity issuance. that will change the supply-demand a little bit. we've seen froth developing in some of the speculative parts of the market. that creates a spicier mix, i think, going into the second quarter. >> mike santoli, thank you very much. formula 1 owner liberty media announcing a takeover of moto gp's parent company at 4.5 administration. greg maffei liberty media ceo and president joins us now. i'm the senior media racing correspondent now so this is a very big deal in our world. >> hello, sara. >> such a great title. >> are you going to -- i made it up -- are you going to follow the playbook for formula 1 on m moto gp.
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>> i would like to think some of the things we've done to help the world see the value and power of formula 1, we can bring to moto gp. let's call it pattern recognition. moto gp is a great thrilling sport, enor plusly exciting. i don't think we need to change that at all and we don't want to. we want to show the world how exciting that sport is. >> seems like $4.5 billion is a big price for a sport that many of us here in the u.s. do not follow and have not heard of. how do you justify it? i do remember when you bought formula 1 a few years ago, that was also considered a very rich price. >> that's your loss to date, sara and we're going to change that. you're going to become a huge fan and a lot of the world can become a huge fan. this is a sport with an appropriately excited, passionate fan base, much of it in spain, italy and france. our goal is to show the rest of the world how exciting this sport is. >> hey, greg, it's david.
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talk to a couple shareholders. they say listen, as you might expect, they think your stock trades at a multiple that's too low, but they wonder, and i'm looking here in the release and not seeing it, but i may have missed it, is this a creative? how did you view this versus buying back shares of formula 1? >> yeah. we expect the transaction will be accretive in the near term. the opportunity to buy back shares is there, and we think actually because of the strong free cash flow characteristics of f1 and moto gp we should be able to do both going forward, do this transaction and share purchase going forward. >> are there any synergies between the two, or are they going to remaincompletely separate? >> this will be a company run by the existing management team and it will be run independently in every way. it's not a case so much of revenue synergies or cost
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synergies here, as it is i mentioned already, taking some of the learnings, some of the successes with formula 1 and bringing some of those ideas and some of that excitement and that passion which is in the fan base and extending it to a broader audience around the world to some degree we've been able to pull off with formula 1. >> what would an example of that be? >> currently they have one race in the united states. when we took over formula 1 it also had only one race in the united states as you may recall. i'm not suggesting we're going to get to three, but the opportunity to grow in the u.s., the opportunity to grow in other markets and geographies, 12 in the eu, opportunities to grow in other geography, probably not increase the total race number but to extend it to new geographies is exciting. >> are you going to be able to get a netflix show for them as well? >> i don't know about that. >> that's a game changer. >> it was. i would note it wasn't the only game changer. what really was the game changer was changing the focus from in
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some cases being about the car to about the stories of f1 and we had to reach out and touch fans where they existed. some fans want to know the difference between an rv 20 and rv 19 and tire strategy and other fans think this driver is cute or that part is exciting and glamorous. our goal is to try to reach all of those fans where they are and what excites them. i think that opportunity exists in moto gp as well. the playbook of social media, the playbook of story telling, playbook of fan zones, playbook of creating f1 excitement in many places we'll try to follow that part of the playbook. >> a great documentary on this called "inside track" on peacock about this whole strategy and one of the things we looked at -- >> now you're talking your book. i'm here to talk my book. >> it's exactly what you're talking about, about increasing the number of races in the u.s., increasing the personalities of the drivers, although i know
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they're riders, not racers, on the moto gp. >> you want to say riders, exactly. >> another thing you did, is that you grew the sponsorships and corporate interest and i wonder what the potential is here to get companies that we cover every day on cnbc interested? >> that's a great question, and i think i was asked it earlier on an investment call, is this about growing the sport or growing the monetization? my answer was yes. frankly what happened in formula 1 is they went together. as we grew fan interest, as we grew fan excitement, our sponsors and new sponsors became more engaged, wanted more awareness, wanted more activation, broofadcasters were more excited and promoters became more excited. the feedback loop of bringing those together, monetization and increased viewership and interest run together and are accretive together. >> speaking of viewership, where
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are you in terms of sports rights in terms of espn, for example, and formula 1 and what may be upcoming in terms of new contracts? >> well, we are, as you know, currently contracted with espn, very excited to have them as a partner, and we are still in an exclusive negotiating period with them. we are not yet entertainingany other ideas. i think there will be a lot of interest in our rights in the u.s. and, frankly, around the world. we've seen new entrant comes in and seen new entrants show interests in all sport, global sports like this. we're excited about the potential. >> do you think you will get the deal done with espn during the exclusivity period or your expectation that you will go broader into the marketplace? >> we'll see, we'll see what we can get done. >> by the way, just broadly speaking, given you have a view into this as well, how is the advertising market right now? >> you know, wear not as much of
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an ad company as some. we certainly have that exposure to some companies like siriusxm, like tripadvisor. i think it's been a cautious ad market and you're seeing it be solid, but not super strong. as you know, we are mostly a subscription company, but we certainly pay attention to the ad markets as well. >> one more from me, do you have any regulatory concerns, antitrust concerns? cbc sold you formula 1 was forced to divest dorna to buy formula 1 by the european commission. any concern about owning both and whether they allow that? >> we will go through the r regulatory processes. cbc had to get the deal sold with corn na because they couldn't go through the appeals process. they had a short time to complete the formula 1 deal. we believe a couple things. we will go through the
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regulatory process. the market has changed. many new entrants into the broadcast market, many new players, whether it be consolidation of larger traditional media companies or the, as i earlier mentioned, you know, tech companies entering new streamers of different flavors, so a different and diverse market. also, a case where a hugely different market around sports. the growth of many sports. football, the growth of basketball, around the world, but also the increase of new sports like in europe paddle or the united states pickleball, all have grown so it's a diverse market and we believe this will be run separately, that there's a wide market for sports and it will not be an issue to get through the regulatory process, but we will go through it with respect to their processes. >> and then finally, on f1, there's been a lot of controversy, greg, and i know how much you have invested in things like f1 academy to try to
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diversify the appeal and the fan base and get more women in the sport and make it more equal and just grow the business into a more responsible sort of equal opportunity business. you've got this red bull controversy in particular with a woman accusing christian horner the team boss of inappropriate behavior. he's still there. how closely are you watching it, and can you intervene? can you do anything about it? >> yeah. first, we are watching it closely as you note, and also as you note, this is a red bull investigation and it's one that we do not have control over. clearly our values are about honesty and integrity and fairness. i think we've tried to demonstrate that through our investment in things like f1 academy and the work we've done around s.t.e.m. and other achievements bringing diversity into the sport. we watch the investigation and we'll see what reports are. we've also seen reports about
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concerns with the fia and their investigations and how the regulators look at those and their things internally and people have raised things about them and with them about this investigation both. hope that red bull can reach a decision in the near term conclusion, have a near term conclusion, handled properly with all involved with transparency and we'll wait to see what it is. >> thank you very much for joining us. >> thank you for having me. >> on everything else. greg maffei. buying moto gp, which is actually, i've spent time looking into it. they go more than 200 miles per hour on motorcycles. i have to get into it. >> taught me about the atlanta braves already getting off to a good start and the mets not. >> he usually does that. >> we have a lot of season for him to do that. >> are the mets not off to a good start? >> no. >> bummer. >> as head to break. i only do racing. >> you put in media there, too,
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so i'm a little concerned. >> that was to taunt you. >> okay. >> not baseball. don't worry. your second quarter playbook with citigroup u.s. equity strategist downgraded tech and other sefctors today. >> a key crucial moment for disney. the proxy battle with trian is coming to a head with the annual meeting. carolyn everson will join us at post nine. >> record highs for the stock market with record wealth for households. we'll get some of those staggering stats, although we have turned lower. s&p 5249. "squawk on the street" is back after this. encore energy, america's clean energy company, now in production in south texas.
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stocks have been rallying so far this year. s&p closes out q1 at record highs posting the strongest first quarter since 2019 for the s&p. what do investors do from here? our next guest is downgrading elements of tech today as well as a bunch of key sectors. scott from citi u.s. equity strategist joins us this morning. great to have you. i was looking through your note, you mentioned some of the downgrades are mechanical in a sense. can you explain? >> sure. for example, the tech we've taking from a long-standing overweight to a market weight and remain overweight software, market weight semis. the hardware component way we're moving down to in underweight. what that does is from a balancing perspective it brings our overall sector call down to a market weight, carl.
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>> does that mean the locus of the downgrade is in sort of telecom, communication services? >> yeah. so what we're really trying to get at here is that we think this broadening thesis that we've been on for a number of months now, carl, is beginning to evolve further. okay. the growth leadership has been very clear and well identified, but if you look at the performance over the past month or two, you have begun to see value kicking in slowly and quietly as an outperformer versus growth. what we're doing with our sector calls going into q2 is acknowledging that the broadening we've been calling for, which is a barbel of growth and cyclicals, now can go down a defensive path and what we're focusing on here most importantly are the perceived beneficiaries and the eventual fed pivot and lower short-term interest rates. that drives consumer discretionary moving higher courtesy of an auto upgrade from
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underweight to market weight and also drives our increased positive view towards utilities and even staples. >> but what if that all gets pushed out, scott? a day like today, yields are higher, better manufacturing numbers, prices paid people look at for inflation firmer than expected, yields up and values breaking down, couldn't that happen? >> yeah. well it can, sara. i mean, that's a tricky one. in the meantime our index has moved into euphoria, combined with our fair value work suggests from a broader perspective we have to be weary it's in a fairly euphoric area. in the market's mind the mid-year pivot during q2 you presume is your focus point. consensus for three rate cuts this year, citi's economic view is for five. if you go down a path where you get a fewer number of fed rate
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cuts or even a lack of a pivot, i would say that probably brings our euphoric concern back into play. >> interesting note, scott. we'll hope to dig into it deeper next time you're on set. for the time being, we'll say good bye. >> to phil lebeau with a news alert on united airlines. >> good morning. take a look at shares of united airlines and boeing. leslie from cnbc.com out with a report this morning that united has essentially some of the pilots have been told they will be taking an unspecified amount of unpaid leave time starting in may and then also potentially going into the summer time as the company will be receiving fewer aircraft than it originally planned and as a result, if you don't have as many planes because of the issues when it comes to boeing producing 737 maxes, you are not going to need as many pilots. remember last month the company was putting a pause on hiring
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new pilots because it has had to adjust its schedule in terms of receiving aircraft. it's taken the max 10, which was supposed to go into service this year, that's off the schedule now at united airlines, so again, united telling some of its pilots there will be unpaid leave coming up for a specified amount of time for certain pilots starting in may as the company adjusts to having fewer aircraft. guys, back to you. >> phil, appreciate that. busy week on your beat. quick note as we go to break, do not miss a big exclusive tomorrow on "squawk on the street," larry culp, soon to be chairman and ceo of inquiry aerospace alongside the ceo of vernova after spinning off the power generation business, that's tomorrow at 9:30 a.m. eastern time. welcome back.
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operation, which left the hospital in ruins. meanwhile the idf says troops killed hundreds of hamas fighters and seized weapons and sensitive documents. the u.s. coast guard is preparing to open a temporary shipping channel near the collapsed francis scott key bridge in baltimore. the alternate channel is designed for commercially essential marine traffic for wreckage removal so those ships can help clear it after last week's collision. a new al says sis of the housing market find americans need a six figure salary to buy a median priced home in 22 states and d.c. a few years ago that was only the case in six states. they blame rising home prices and lower inventory. sara. >> thank you. wall street out with a host of q2 picks to kick off the quarter, particularly in tech. let's get to dom chu who has the breakdown with tech the only sector higher right now.
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>> right now. so by the way, two of the top three best performing sectors on the year-to-date basis have been in communication services and technology, but a notable laggard is consumer discretionary in large part to a 29% drop in tesla stock in that span as you can see. out performance in tech. now all the members of the magnificent seven are part of that tech related trade. a focal point in the second quarter will be those trades. analysts across wall street out with some of the top picks. start with bank of america calling google parent company alphabet one of their top picks for the next three months after under performing its mag seven peers. upside potential for internet search and artificial intelligence could have positive sentiment. amazon a tactical overweight citing a revam fee structure for fulfillment services which could drive better profit margins going forward. interested in learning about the analyst calls and other top calls on wall street each day head to cnbc.com/pro, subscribers there, david, of
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course, can get the full story. i'll send things back over to you. >> thank you. after the break, a crucial moment for the battle over disney's future. disney's proxy fight with nelson peltz comes to a head at this week's annual meeting. board member carolyn everson will join us right here at post nine. stay with us. when it comes to investing, we live in uncertain times. some assets can evaporate at the click of a button. others can deflate with a single policy change. savvy investors know that gold has stood the test of time as a reliable real asset. so how do you invest in gold? sandstorm gold royalties is a publicly traded company offering a diversified portfolio of mining royalties in one simple investment.
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we are two days away from disney's annual meeting where nelson peltz is fighting to get two seats on the board. the latest to come out and support peltss's campaign. the stock up over 30%. that's the best performance that stock has had since 2000. joining us is disney board member carolyn everson who sits on the boards of coka cola and under armour and ran meta's advertising business for 12 years.
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welcome back. >> thank you for having me. >> i'm assuming this will be the last interview we do prior to the vote. >> you never know, but i think it's safe to assume. >> you never know. >> since you last joined us, i think a lot of the focus, at least from the proxy advisory firms and i'll reference iss which did come out in support of nelson peltz for one seat, has to do with succession and a key responsibility of the board. they raised the question for shareholders not whether the ceo should be replaced but the board having failed to properly oversee the last succession process at disney, is capable of avoiding the same mistakes. how do you answer that as a current board member? >> i think our number one priority as the board is to oversee the succession process and the board is completely focused on insuring that this transition, which will happen at the end of 2026, goes smoothly. we are looking at internal candidates, we have several internal candidates that are exceptional and all being mentored by bob, bob is taking
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them traveling with them, introducing them to more investors, and we're looking at external candidates as well. it's the number one job of the board, and we take it very seriously. i think if you look at the last time when this succession -- >> you were not on the board. >> i was not. >> you joined literally with the transition. >> correct. bob iger's first day back was my first day on the board and we added two new members james gorman who oversaw a successful transition at morgan stanley, mark parker, we have calvin mcdonald and mary barra on the succession committee and the process, i feel, as a relatively new board member, the process is really buttoned up. i also feel strongly about the talent on the rest of the board. mel is on the board and oversaw some great succession planning at coca-cola when james quincey was anointed the new ceo. there is a ton of expertise and it's our number one priority. >> carolyn, there is the
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possibility should nelson peltz win that board seat you have to be thinking ability succession a lot sooner, mr. iger may say i'm not up for this. would the board be prepared for that outcome? >> the way i look at it as a board member and shareholder, we look at the track record of success since he came back and we want there to be harmony in the board room and also to be really good debate because there is a lot happening in the consumer media landscape. consumer behavior is shifting dramatically, but it's not like bob iger and the board woke up to this fact. back in 2015 he made a bet on streaming buying a 33% stake in bam tech and then in 2017, the entire thesis around the fox acquisition was around getting the content ready for streaming. imagine if we had not bought it. your parent company, would own hulu completely, would own the simpsons, own the avatar, own fx and searchline light, engines of creativity, bob has been
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thinking about the transition since 2015. we want bob iger to continue the work he is doing and when we look at his report card since he has come back he has dramatically restructured the company, $7.5 billion in costs, 500 million was recognized in q1. he has fundamentally worked with jimmy on espn's future. we launched the -- or announced the jv with fox and warner. we have college playoffs which just got renewed and launch flagship espn in 2025 and made a significant capex commitment. >> all those things, but my question was, if, in fact, nelson peltz wins and bob iger comes to you the board and says you know what i'm not up for this, he's too, as he continues to say, too disruptive and, you know, life is too short, what do you say as a board member to him if he says i'm out of here? >> i think that would be a terrible outcome for disney. the future of disney is at stake here. this is why this vote is so
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important. bob is just in the midst with his leadership team of a massive transformation of disney. we're the number one performing stock in the dow in the first quarter, the stock performing well. reinstated a dividend, announced a $3 billion share buyback, we'll get disney plus profitable in the fourth quarter. this is a report card of a ceo that every shareholder right now should say, i'm betting on him and i'm betting on this board. >> a report card of a ceo under immense pressure from an activist investor who wants to join a board seat. why not just keep that pressure, bring him on the board and then you have a shareholder advocate? >> what bob and his team have been executing and the board have not anything to do with the pressure from nelson peltz. this transformation started before nelson peltz announced his position in october of 2023. nelson peltss made statements the stock is pre producing as a
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result of his investment. it's not true. it went up and then down 6.2% the weeks following and the stock has been up because we announced our fiscal year earnings on november 8th and on february 7th first quarter earnings. two upgrades from bank of america and ubs. the momentum in the stock is due to execution. the critics would have said, bob made a lot of announcements. let's see it in execution. guess what? it is all being executed on. if i am a shareholder, i'm betting on that momentum and the leadership team that's doing it. i am not betting on putting somebody in the board room that could potentially be highly disruptive and change the future course of the walt disney company. >> some of nelson peltz's comments have touched on notions of cultural representation, equality, at least regarding studio content. you got the settlement with reedy creek in florida. is the board trying to extricate disney from the culture wars so to speak? >> i think one of the things bob
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was conscious of was turning the noise down when he came back into the role because there was a lot of noise and disney does not want to be in the midst of a cultural war. part of what bob has done with reinvigorating the studio is looking at the lens and really thinking about the quality of the creative. he has this saying that is a relentless pursuit of perfection. know what bob iger was doing yesterday? screening films and giving notes on a film coming out in a couple months. he has killed two animated films that he did not think were going to be great. it takes courage to do that once you start the process and say to pull back the films. so he's reinvigorating the slate. he made changes to bring mu wanna and has mandalorian he's excited about as well as the creative team for 2026. part of the strategy was to turn the noise down and we are pleased we came to a resolution in florida. i think it's important we get back to what we do well in
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florida which is entertain millions of guests and invest in creating jobs for the economy. >> yeah. have you been lately, you to to the parks -- >> twice since i was on. i did not know you were going to ask me that question, and you probably don't have current pictures but i've been twice. >> i hosted a reunion. >> over 52 now. >> to disney world. >> that's crazy. >> one day you will ride jungle cruise as much as i did. >> quickly, carolyn, because you're on the under armour board. kevin plank is back at ceo. stephanie was only given a year to take over as ceo and implement a strategy? what happened there? >> kevin plank today is his first day as you mentioned. we think he is the right person as the right passion for this next phase of under armour's transformation. he is as excited as ever to be back in the chair and the leadership team is on board and surrounding him and we made changes to the structure of the board as part of him coming
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back. we put mohammad eller reen who is on with you a lot back. >> the board meeting can be consuming. >> drama. >> you think i don't have a full-time job. >> it's very interesting, that's for sure. >> thanks for being with us. >> thank you so much for having me. still ahead, record-breaking stocks, record-breaking wealth for households. the incredible numbers on that when we're back in a couple minutes. you founded your kayak company because you love the ocean-
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american household wealth hitting new records. let's get to robert frank with details. good morning, robert. >> good morning, carl. record highs for stocks creating record wealth for households. household wealth reached an all-time high of $156 trillion at the end of 2023. almost all of that gain came from stocks, which added $4 trillion in wealth for americans just in the fourth quarter. stock ownership has always been fairly top heavy. the wealthiest 10% of americans own about 87% of all the stocks. the top 1% own about half. since 2020 the stock market combined with rising real estate values have created the fastest wealth boom in recent history for just about all americans. the wealth of the middle 50% to 90%. that's basically the middle class. that has increased by 45% just over the past three years. they've added $14 trillion wealth, about half coming from
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higher real estate values. meanwhile, the top 1% seeing their wealth increase by 49% over that time period. most of their gains come from stocks with equities adding $8 trillion in wealth. and the orbit of good news here, more americans are actually benefiting from this rising market than ever before. a record 58% of households now own stocks directly or through funds and retirement plans. guys, we got rising stocks, rising wealth for more americans, all pretty good news. >> you would think, although if you look at the approval ratings for president biden, it's not necessarily reflected in that. middle class in particular. it's interesting to hear those statistics because there does seem to be a lot of frustration and concern overall about, let's call it economic health. >> yeah, david. part of that is because rising wealth doesn't mean you can spend it. if a lot of your rising wealth is in your home and you can't tap that because of the high interest rates or you don't want to sell your stock, that doesn't
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help you when you're paying more and more for your groceries. clearly from a wealth effect point of view, which is the idea the more wealth you have, the more confident you will be as a spender, that's kind of balancing some of that out. but it doesn't mean that everything is great because, again, we're talking about wealth, not income and what you actually spend every day. >> yeah. understood. robert, thank you. robert frank. speaking of the market, the s&p is down about 0.12%. the nasdaq is eking out a small gain. more market coverage straight ahead. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market.
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good monday morning. welcome to "money movers." i'm carl quintanilla with sara eisen at the new york stock exchange. today citi's chief u.s. economist with us. why he expects a recession and 125 basis points of cuts this year. plus, market madness. cinderella stories to watch and the renewable energy space as we head into the second quarter. plus, we'll get goldman's top five oil picks. bemo on names to buy and sell despite headlines that suggest a cracking consumer. why they say ulta and lu
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