ticketmaster platform. that's according to multiple reports. any hypothetical suit would follow a long trail of regulator and consumer scrutiny ever since livenation bought ticketmaster back in 2010 >> dom, thank you. let's take a final check on the markets very quickly actually, it's going to be up. pay attention closely, especially with the nasdaq, thanks to nvidia that does it for us today. join us back here tomorrow right now, it's time for "squawk on the street. see you later. ♪ good thursday 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 is on assignment nvidia's stellar quarter and guidance will push s&p and nasdaq further into record territory today, all three indexes on track for their best month since november our road map is going to begin with the a.i. boom nvidia with a record quarter and announcing that ten-for-one split. jamie dimon says he can't rule out a hard landing for the united states. and the doj reportedly set

to file an antitrust lawsuit against ticketmaster parent livenation as early as today let's begin with nvidia's blowout quarter. the company revenue more than tripled in q1, and its datacenter business grew by more than 400% over a year earlier sending shares above $1,000 for the first time here's jensen huang on the call last night >> the demand for gpus and all the datacenters is incredible. we're racing every single day, and the reason for that is because applications like chatgpt and gpt 4-o and now it's going to be multimodality and gemini and its ramp and anthropic, you know, all of the work that's being done at all the csps are consuming every gpu that's out there >> jim, a lot of the commentary today says any worries about an air pocket probably get assuaged today. >> yeah, look, there was a lot

of teaching on the call last night. jensen came in right after colette kress, the amazing ceo usually he comes in later, but he wanted to explain to people about the industrial revolution that's begun and that most people are really looking at this wrong most people are saying, okay, why don't we pause this is the commentary and we'll wait until we get this blackwell, which is really a platform assistant and he said, first of all, everything that they have, the h-100, the h-200 t predecessors, are all going to accelerate. that would be really a slap right in the face of people who are saying, there's got to be a stop, a pause. and then, he said something that i think was amazing, and we're going to have to talk about it automobile it's going to be automobile that's the number one this year. no one thought that. everyone thought it would be the cloud service providers. they thought it was going to be meta and alphabet and amazon it's tesla and it's tesla, and wow, it's

self-driving full self-driving. and he talked extensively about that i was kind of bowled over, because that's not what i was thinking but it just shows you that what happens is that of all the outfits, it does seem like musk realizes that you have to get all the chips you can. the 100s, the 200s, and then get blackwell, because you have to get these chips to learn they have to be trained. and the example that jensen gave you was, you can put video in it, and it can see what a stop sign is anywhere it can learn what to do with signs. before, it had been, like, this is a stop sign this is a red light. and it was almost as if he spent a lot of time with musk, and musk is saying, listen, i'll take everything you have and i think it was an example. it was an example of, you can't wait for blackwell if you want to be the technological leader, you got to take the whole suite, whatever you can get to and i point that out just because even this morning, "the

wall street journal" has an article, and i am going to name this directly, because i'm tired of what reuters had to say i'm tired of what i read a lot of different outlets say people are nipping at their heels. if they're nipping at the heels, then it's not the heels of this company. it would be the heels of other companies. >> you're referring to nvidia. not tesla. >> no one's -- oh, no, tesla -- i'm saying that the "journal" article was, now that nvidia's on the top, they're going to catch up this was nvidia ascendant. why i mention tesla is for a couple reasons one was that musk was -- he wasn't saying even two quarters ago that he needed jensen. now, he's all in it's musk and then the second one was zuckerberg those are the two. zuckerberg, because he's an open system this is -- this is the llama open system. neither are expected to be top i expect amazon to be top. maybe alphabet or microsoft. it wasn't. it was a very different

narrative and one that was unexpected >> a lot of the notes today, bernstein goes to $1,300 td cowen, $1,200 they say, remember that $11 billion guide last year? they just divided to 2.5 times that >> i mean, i was doing some mathematics for the club, for the investing club, and if you look at what it was at the beginning of the year, it was at 19 times earnings. that's what it turned out to be. if you looked at the future earnings, the future earnings turned out to be so much higher. when talking behind the scenes with them today, they were saying, can you believe how much cheaper our stock is than amd? it's true. their stock remains very, very cheap with a 19 multiple at the beginning of the year with a $26 number that was an estimate it turned out to be -- the number was far lower it was the number you gave so, i think that there's still a sense of people don't understand nvidia and what -- i was joking with him beforehand not -- i mean, after the close

no inside information. they knew that people would like the ten for one. >> yeah, which is something that you had actually raised with them a while ago take a listen to this piece of sound. >> 150 people i saw this weekend who all told me, please tell him thank you. they all also want something that i know is pedestrian and doesn't add value. they want a stock split. why can't you give it to us? >> well, we'll think about it. today's not the day to announce it, as you know. >> i know. and again, i apologize for -- it's meretricious. >> we've done stock splits in the past one of the things that i really like about stock splits, by the way, is that it makes for the stock purchase for our employees and others >> yes that's what walmart says too >> it's a good thing we want to make sure that we take care of our employees they do such an incredible job for us >> jensen knew that i was asking

for something that doesn't create value at the same time, he recognizes that everyone should have the ability to be able to buy it obviously, the employees do well but this is an example of the remarkable nature of this man. he had probably 40 things going on in his head while i was bothering him with this. right now, he was probably thinking about how to put a man on jupiter, and he's got to listen to this older guy badgering him on a stock split, and he's fine. it was like when i told a joke to him, and i said, i just told you a joke, and he goes, i know. super funny. i'm laughing on the inside e he's got so many things going in his head, but he's willing to give us the stock split, because we basically said, individuals want to own your stock please give them a chance. he cared >> if you're all about the ascendance of this name and putting more white space between it and rivals, what do we make of the halo today in amd, intel, smci, dell, hpq and others >> of those, dell deserves it, because dell is still the way to

implement. hp, he did say, jensen, that there will be an a.i. pc and that they will be in it. i was surprised. they're in 100 million servers, so that's going to be a big thing for them, so you can say hp, definitely a winner. remember, hp is really identified with amd. that's very important. what was that company that you mentioned that began with the letter "i" >> it's the name that nvidia has added today in market cap. >> oh, you must be speaking about intelligence intel is not a factor. broadcom is more of a factor i would say that when you look at the factors, it is kind of interesting to see some companies up very, very big, and they do deserve it micron you need d-ram arm should be higher because arm is the cpu that's involved i don't know why they're not higher that would be the one.

they should be higher than micron, but the one that i want to buy, oh, man, i'm going to commit to this, is tesla jensen says tesla -- if musk has gotten right with jensen, then i want to too. snowflake did come up. snowflake did tell me last night they felt they were the only one that really had this model, the runway model, so to speak, but jensen's got like five other companies that are doing it, but they're not public >> tesla is holding in there this morning there is news, of course, breaking ground on a big factory in shanghai. there is this harris poll data, jim, that shows their trust levels of major brands has fallen from 8 to below 60. they're behind honda, subaru, toyota, ford >> i saw something really funny this morning ford got an upgrade by bernstein because the epoxy is so dry on 12, i don't know how it's going to get 315 takes a crowbar to get that thing off $12.

tesla, i'm taking a long shot and saying, yesterday, and all this week, tesla wants to be much more than just a car company. jensen's endorsement is saying they are far ahead of everyone and will have full self-drive. i'm not going against jensen ever i don't care about musk. i don't go against jensen, because jensen has not talked lovingly about musk before by the way, nothing apple. nothing apple. >> interesting the auto wrinkle is definitely new, and the fact that it surprised you is notable >> my god, jensen went out of his way to make it happen. >> does it make you think that the -- any kind of hardware refresh on the consumer side is less important >> no. i think that there -- these guys can walk and chew gum. he's very excited about the pc, and i made the point of saying, guys, i don't think you're as interested in the consumer, and they were saying that they were being very condescending, "that's a misread, jim."

they want to be ubiquitous, is their thought. i emphasized robot reading to them, and they came back and said, listen, the -- we mentioned in the -- in it that we would show video to a -- of a sports player, and they would then be able to mimic that video because of tokens. they would be able to put it together >> right, right. >> very solid. >> so, with so much attention on the a.i. trade today, does it steal any oxygen from the rest of the market? yardeni, a great piece on why the dow has been held back from all-time highs, because of transports, for example. >> really good note about norfolk southern, saying the operation is going to get better the answer to that is, yes, carl i think that, well, let's put it this way yesterday was all about the fed, and really old minutes that came out before the cpi, that came out before retail sales, came out before the collapse in oil, came out before the bust of the copper short squeeze but it's just very hard to ignore nvidia.

now, this is the bummer about nvidia you listen to the call and then, because jensen's of a different world, you listen to the call again, and then you listen to it a third time, and you speak to them, and you say, look, i got to understand everything it's really hard to understand you need a glossary. you need to know about total cost of ownership. that's really important. you buy it for a dollar and get $5 back within the next few years. you have to understand that. you have to understand cooling you have to understand the difference between a platform and a chip it is so hard to understand their calls that a lot of people, i think, get caught up and didn't even listen to what ed breen had to say about dupont >> the all-time highs we're dealing with and the battle against inflation and the a.i. revolution, we still had dimon once again draw attention to some longer term risks take a listen to this. >> i look at the range of outcomes, and the -- again, the worst outcome for all of us is

what i call stagflation. higher rates, recession, that means corporate profits will go down, and we'll get through all of that. the world will survive that, but i just think the odds are a little bit higher than other people think >> i think that -- jamie is a great banker, but i've now seen him on multiple occasions, and his pessimism is not trumped anymore by his optimism. he tends to have, listen, this is this bad, but we're going to be ascendant military's great, and our schools are great. he's not giving us enough of the good, and he's got a little too much of a down beat view right now. he did predict 6% on the short end. even though his bank is a totally attuned to nvidia and the number one financial company attuned to nvidia, i don't think he's getting the wonderment of tech here. i don't know i want to talk to him about it i want to talk to him, because i want to get his -- he's too good a guy to dismiss i'm not dismissing him >> sure. >> i just think he's a little too negative versus the times.

>> it's interesting because we're still on the heels of their investor day onday, and that b of a note this week took a look at their use of a.i. and said it would redefine bank industry cost structure, and then it raises the potential for better r.o.e. over the medium to long-term. >> i know, and it really wasn't a focus at all of jensen the two things that weren't a focus, i felt, were the cell phone and the actual use cases away from auto but look, you only have so much time on the call colette only has so much time on the call, and the calls are great, but jamie dimon is -- he could give a totally different talk, and it would still be true to his negativity, which was to be able to say, listen, we're able to do things i never thought we could do with our people, moving them around, and they're speaking all sorts of languages. a lot of what jensen was talking about is sovereign a.i by the way, one of the things that they said, why aren't you guys calling out france? i should have asked -- andrew's over there he's enjoying -- what is he

doing? >> great interview with macron today. >> but i think what's going on in france was talked about several times, that they have really embraced a.i. in a very aggressive way, and i thought that was good. >> well, still, i mean, goldman chart yesterday, since 2019, u.s. productivity is beating any other developed economy by five percentage points. >> let me send that to jamie while i'm on air i'm going to quickly get that to jamie, because that's the kind of thing he used to talk about i want the old jamie he said, it's cataclysmic, but we're going to crush it. it's like watching "the red shoes. very good movie. >> i like that good call. our thanks to our colleagues in cnbc asia for the dimon sound, by the way >> that's fantastic. otherwise, maybe you didn't realize. kind of like harrising butger. >> still to come this morning, a closer look at the doj reportedly going after

livenation over ticketmaster's domination of concert sales. so many names to get to. lomoduntndsnow, baba, po a a t re when we come back you need an idea. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow!

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♪ we mentioned doj, livenation before the break and we are getting breaking news. let's get to eamon javers. >> that's right. nbc news is reporting that the department of justice will announce at 11:00 a.m. east coast time this morning that it has filed a civil antitrust lawsuit against livenation and ticketmaster that is going to be done in conjunction with various state and district attorneys we don't have any more details at this time as to what's going to be in this antitrust suit, but we can imagine we will get a lot more details at or before 11:00 a.m. when that

announcement officially occurs now, this is obviously a long-running issue you have had decades of complaints from some artists and others about livenation and ticketmaster, and the grip that that company has on the live performance market in the united states i would expect that later today, we'll also hear from the company as well to mount its defense these antitrust cases are a long time coming, carl, and so there's usually by the time they surface publicly like this, there's usually been quite a bit of back and forth between the company and the u.s. government in terms of discovery, finding documents, information, and both sides are typically ready to roll out their set of arguments whenever a case like this is announced, but what we know now is that the department of justice, according to nbc news, will announce at 11:00 a.m. that it's filed this civil antitrust suit against livenation entertainment and ticketmaster, carl back over to you >> thanks for that eamon javers this has been in the ether for a

while now. >> when i speak to people at justice, sometimes they'll listen and think i'm critical on what they're doing and look, i'm pro-capitalist, and sometimes, i feel i've run afoul of them, they've run afoul of me, but they mentioned this basically in the context of, like, okay, you're negative about a lot of stuff let me tell you about ticketmaster and then they prudoceed to give you a case that says, america has had a huge increase in inflation in tickets, and that is something that powell has flagged repeatedly, and the cpi, tickets have been terrible and they'll say, listen, we're going to fight inflation we're going to bring this down and instead of just thinking, you know what, they seem to just be antagonizing the big companies, this is one they've got. they've got this one i really think that this is one that is one that i think that if you were the federal reserve, you would say, you know what people think that we do nothing to get prices down watch this case. >> this was part of the discussion between becky and tim wu on "squawk" last hour in that

i think in wu's mind, this is one that it's tough to play devil's advocate on. would you agree? >> yes, i do and what the justice people were saying to me is, listen, our mantra, why we were set up, why the antitrust department was set up, is to take advantage -- is to stop these situations where there's collusion and making it so that the consumer has no choice, and this is it >> eamon, i know you're still there. in the discussion of possible remedies, "the journal" does go into the break-up scenario today in their coverage. >> yeah, and it's tricky in these cases, carl, to get to the idea of a remedy remedy is ultimately what you have to do to fix the situation if the government is able to prove its case generally speaking, what the government doesn't do in the early stages of these is say exactly what remedy it wants they just say, we're alleging this anti-competitive behavior we have to prove it in court, and then we'll get to a remedy phase later on so, these things can take months, if not years, before we ever get a ksense of what the actual remedy would be, but you

can start to tease it out. you can start to look at possible solutions here, and the complaint about livenation and ticketmaster is that they simply have an iron grip on the venues themselves, and therefore, they have control over the artists. a and so, any remedy would have to break up that sort of grip that the company has on the live venues where performers are going, and that's so important now in this age of streaming music where the music industry has changed to a point where performers make more money touring live than they do necessarily with streaming it used to be album sales were the way a rock band or the equivalent of taylor swift in the '80s would have made all her money. now it's that live touring it's so important to every artist, and that's the thing that the allegation is that livenation has its grip on to remedy that, you would have to break that up in some way how you do that, they're not going get there early on in this case >> meanwhile, it was in may of

'94, jim, when pearl jam, as you might recall, did file that complaint against ticketmaster at the time with a prompt from doj. >> yeah. yeah okay, so, who was david letterman's favorite group >> i assume foo fighters >> pearl jam number one when they were inducted into the hall of fame >> my point is, this one hasn't necessarily been led by creatives. >> no, it's not. lars from metallica told me it wasn't him either. i thought there were certain people who performed over and over again what this is about -- eamon's got it right -- this is a great campaign issue this is a universally despised -- now, i happen to be recommending the stock for one particular reason, because i just think they're like the best gouger in the world. alleged gouger it's been a great stock because they've gotten away with everything how terrific >> and this comes, of course, on the heels, not to get too political this morning, but the

reason -- the cook political report today looks at why trump is ahead in some swings, and it is overwhelmingly because of perceptions about inflation, to your point >> that's exactly right. that's why it's so great that the justice department looked at what's inflation right now and saying, we've got to stop it look, i don't know if they're doing to -- i do know this is front and center with america, because people are going to want to be entertained, but they can't afford it. i think it might be. >> eamon, thank you for that we'll be coming back to you later on this morning. that's our eamon javers in washington, d.c. let's look at the premarket here nvidia is going to propel the bus en fthllevurer at the open when we get that bell in less than five minutes.

>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. let's get cramer's "mad dash." >> sometimes i go over companies whose stocks i know are going to be down, and i want to alert them that tomorrow might be the day. ralph lauren reported a quarter that i really liked. the consensus was much better, but some people might say that the actual reporting earnings

this quarter weren't that good some people might take an issue with the forecast. that's exactly what happened last time, and the stock suddenly roared 40 points when realized that patrice was just being conservative it's happening again let the sellers sell don't abet their behavior by trying to stop it here they want to get out recognize that ralph lauren's got the olympics coming up, which is going to be extraordinarily strong lot of catalysts growing worldwide, china doing well. he's the best right now in the industry so, let it come in let them sell, and then buy. >> to your point, asia, up seven. north america, up two. new cfo. 10% div hike >> right and the div hike is, again, meaningful because this is an apparel company, and they're considered to be very episodic, and he's taking that away. he's got a very strong road map, going after the wealthy cities, doing a lot of really smart things with direct-to-consumer

and the internet just knows where to go the classic look is back by the way, athleisure versus lulu, i don't want to -- i don't want to pile on lulu too much. >> let's get the opening bell here at the big board, property and casualty insurer bowhead specialty had an ipo today at the nasdaq, it is csx and blue star families, an organization supporting military families back to 5,340. dow, as we were mentioning earlier, lagging a bit here at the open >> yeah, i mean, look, the nasdaq, there's so many companies that are under the halo of jensen, and my problem with that, again, is that he's saying, look, we're the only way from a lot of the companies that are being bought out today and that's a mistake he's got to be very careful. you don't want to just buy,

like, amd, they augmented the total size of the market my problem with that is that they are anti-amd. jensen would say, look, there's room for everybody, big tent, but you know, they don't want amd in there taking business they want all the business, because they are very aggressive guys >> driving a near-2% gain in info tech in morning, com service is up two-thirds it's going to leave health care and staples and utilities in the dust today >> there's another positive note about lilly. i don't know if anyone's bothered to look at the rally in pfizer, but it's really incredible pfizer remains very cheap and doing a lot and cutting costs yesterday. lilly, there's a bunch of surveys out. people are talking about that there really is no substitute for their mounjaro or zepbound, and i've been using this outfit. jason alerted me to them it's an outfit called -- it's

100 x, which is a research outfit, and they have data which just shows that lilly is crushing it in terms of usage in ten. if people really want to use lilly over wegovy, and this idea of these compound hims and hers, those are not liked by people. when i check in with lilly, they are very, as always, nonpromotional, but they're going round the world, and i do believe ken langone is right, that that's going to be a trillion dollar company. >> to your point about pfizer, $1.5 billion in cost cuts by 2027, which they mentioned today. but jim, as for now, top five components are going to be nvidia, super micro, western dig, hp. >> the usual gang. super micro is a little less proprietary. hock tan is doing a very good job. we do have to do our show from a datacenter i think we have to wear cooling

clothes. >> are you working on that >> yeah. >> that would be good. i don't have -- atmospherically, i don't have a sense of what it's like to be inside one >> we're going to do that. we're going to go to a d datacenter and pull it apart, because the datacenter is the modern day ford or factory for artificial intelligence. datacenter is an artificial intelligence factory you put in the data, which is the training, and then you take the inference of the artificial intelligence that comes out. they spend a lot of time trying to explain to people what inference is versus what training is. and the training is where they have the real edge over everybody else >> good video of you is this with nvidia? >> oh my god, that's the robot guy. those robots were actually phony. that was just fun. but when i got to that bartender, oh my god, the mocktails. if he had just put in a little tito's, i would have had the time of my life. >> coming from someone who knows

how to make a cocktail, that says something >> my wife's mezcal and the montenegro -- >> conference call commentary that water might actually get spun off before electronics. >> the comp there is island and baralto, a spinoff of danaher. they are valued much more highly, which means the water business is going to be very inexpensive versus the comp, so to speak electronics is valued against an outfit called integrus there are people speculating this is the great tyco break-up and the electronics and the water will be bought as soon as they're allow to be bought new dupont can grow. a remarkable spinoff this is the swan song of ed. he's great goes to $30. the fact that it's down just shows me people don't even know how to do math arithmetic

it's down. maybe they're thinking, well, ed's going away. ed's not going to be done. i can't believe that stock is down i have to tell you that is -- there's a company called louisiana pacific, and they make the best plywood, and the algos right now are -- it's plywood up there, because this is such a dumb -- buy me 100,000 dupont right now. >> take the top off. ed breen is going executive chair, june 1. but 3m, ge, honeywell, rtx, is there any industrial that wants to be a multiplay? >> no. and that's one of the themes i have been emphasizing, which is they realized, you know what there's not a lot of advantage you say, maybe they would be able to buy things together, a conglomerate advantage it's just not playing out. everybody knows it from larry culp, but it was greg hayes who put it together with rtx whowho realized what do elevators have

to do with a pratt whitney engine the answer is nothing. there's almost none of these left we'll find one i'm looking at dover i told the club i'm looking at dover. >> interesting >> they're ready for it. >> by the way, morgan stanley does initiate ge vernova to equal weight, although jim, the name is still close to some all-time highs >> i like that stock too much to make it equal weight morgan stanley, james gorman is now officially giving his exit date >> end of the year, leaving as chair? >> now, the thing's been going up ever since pitt got it and the last quarter from james was not good i'm not going to put it in -- it wasn't as good as i thought. i'm going to put it in the not good category. that stock has been straight up ever since the ted pick quarter. but it's also underperforming solomon, certainly underperforming scharf the 3m, they are -- some of that

was they had to sell off the health care because they needed the money because of the forever chemical problems. but dupont's going to $100, and it's having this pit stop of idiocy >> pit stop of idiocy. that's your next book. >> yeah. the pit stop of idiocy yeah pit stop of idiocy why not? i like that. >> jim, adding to the nvidia story is tsm, calling for 10% industry sales growth. that's an all-time high. >> tsm is a good example of the pitfall of idiocy. when they reported, it was, we have so much business we can't handle it. and that got interpreted as being, they're not going to make the numbers. and i was like on the call you had to set the alarm for 2:00 i was up at 1:30 i wasn't going to tolerate being late for that call it was so bullish that the stock was down there are situations where the crowd gets it wrong instantly,

and then it's just roared since then you take a look at the dip the dip was when they reported the incredible quarter makes no sense by the way, nvidia opened up 30 in the afterhours. then came down to up 15 as -- and nothing was happening. they weren't saying anything again, i want to get in the heads of the people who just decided, you know what, this is as good as it gets, and i'm going to sell it, because those are the people i really fight against. >> the goldman desk this morning said that given the trading after the market last night and this morning, little evidence of fade was their argument. >> it's very hard to fade because what they did was talk about, do you think that -- here's what they're combatting during the andrew grove period at intel, they would put out the 386 and tell you, we got a 46 coming and then no pcs would be sold for two months, and what they were saying was, look, if you were elon musk, and you decided you didn't want to buy the h-100 and the h-200, you

were going to wait for the blackwell, you would not have been able to do what they were doing. you have a back -- it does have a backward claim to it you can use it going backward, and i don't think people th understand that. and they were addressing that on the call repeatedly. i did a note for club members that had seven points that you better start understanding about nvidia or else you're just really not going to get what blackwell means. things are backwards compatible. they must have said that a half dozen times. and by the way, the whole idea that others are, like, coming up with chips that are going to take over nvidia, jensen addresses that directly and says, please come up with chips that can help us we want to work with you i mean, i don't understand people don't want to be on the call they must -- they want to write the story before the call. >> i mean, it's -- you know, to our point yesterday about accounting and software, some things are difficult to understand look at the snow quarter you've got a deal with rpo

>> oh my god >> all these acronyms. >> oh my god, the toc. if they had not -- had they not spent -- i interviewed ramaswamy from snowflake, and had he not han answered -- down >> that's what i was saying. >> down. i mean, he made the quarter -- down okay all right. well, whatever >> pit stop of idiocy. >> there, i think, there's a problem in that there are people who, on the conference call for -- this is interesting on the conference call for nvidia, they mentioned five competitors to snowflake and that was worrisome but then, jensen's going to go to their conference, and that's going to show that he's in league with them >> sure, sure. >> but suddenly, i saw, holy cow, i wish i had these notes when i was interviewing ramaswamy, because i didn't know there were that many competitors to what snowflake is doing that was a little disconcerting to me. disconcerting. >> jim, you mentioned rl as a

name to value in retail. vfc, i imagine, you would consider the opposite. >> yeah, and there were some people who -- oh, boy, they really took it to them calling it fraud now, bracken darrell -- i happen to love bracken darrell, the ceo, and it was one of those legendary conference calls where he's going into the tunnel, okay, and it's the first half, and the other team has scored 27 points, and he has no -- none, and he starts the conference by saying, we have them exactly where we want them that was that kind of call >> yeah, yeah. vans, down 27. it's a surprise loss >> vans. say it ain't so. >> sales down. that's a miss. >> timberland down 14% i should have known dickey's was bad. i got this great jacket at walmart for $24. now i know why dickey's was down 15 >> ope cuts under armour today

>> if i were kevin plank, i would say, really? i mean, the beatings will continue until the morale increases. >> although, you know, as long as we're talking about the consumer, goldman today calling for 2.5% real income growth this year positive gains in all income quintiles. >> the consumer has been called so many different things i think that you have got a resilient consumer call from bryant cornell you have a positive consumer call from ralph lauren and walmart just says, we don't care >> how about e.l.f.? e.l.f. is back above the 50-day. >> everyone in the world was telling me that e.l.f. didn't do the numbers, and i'm like, are you kidding? they represent tremendous value, and she's going to be on tonight. one of the things i love is that

i shook -- i went to my wife's whatever she's got, the store of great value in our bathroom, and i swapped out all the mac. this was a mistake i've got the -- oh, boy. i got the estee lauder in the travel trust david, i'm sorry i screwed up i know >> if it's not estee lauder -- >> i took all the estee lauder out and put mac in and i turned the label around, and after a month, i said, what do you think about this she said, it's better than ever. i said, turn it around, and it said e.l.f. on it. and she said, how could you do this to me but she never went back. never went back. >> well, whether it's e.l. -- we mentioned boeing, jim. the faa administrator was on abc news this 90-day safety plan is due next week. says it will be a long time before they're back where they belong or need to be >> holy cow. >> we got news of the china deliveries being delayed >> people didn't think the b-29

f was all that good either >> yes >> although it was silver, not green. >> is your point that -- >> it just doesn't matter. it's still boeing. you can't -- here's what you should do. you should go down to the world war ii museum in new orleans, go to the boeing room, and just accept that boeing is going to be here to stay, no matter what they do. no matter what they do and i will tell them right now, i will take the job. and i will do it better. >> the ceo job of boeing >> yeah. >> you'll do it better than dave calhoun. >> i'm happy to take it, as well as the treasury job in trump don't you love when he says that i know you're taking the trump treasury job david, you're saying that in a commercial break but no, i will take the boeing job. i promise you, i will do better. i promise you. i mean, i have a history -- i have a particular set of skills that will be a nightmare for the naysayers. >> you'll come on, though, every quarter? >> good luck every quarter, i'll come on, and i will talk to phil lebeau and tell a very straight story, and

i would immediately go to every agency, throw myself down and says, do what you want, i'm not stopping okay and look, if they -- if they do not release the negatives, then i'm tell i doing you, i will fid them and make them pay >> boeing's been a tough story, to our earlier point about transports holding the dow back. >> it's unbelievable name a new -- make me ceo. just make me ceo i will even quit my job. >> you'll do both? like jack dorsey >> just four hours right now that i do not know what to do between 12:00 and 4:00 rat night and i can do that job. >> the worst dow names are boeing, exceeded only by disney and intel. >> disney? >> to your point about intel, though -- >> where's peltz when we need him? intel is really -- that was such a mean comment, and i made it. i can't believe how mean that was. it's like the old cramer geez hey, karen, pick up. intel is down, correctly,

because there's not a lot of room for pat pat, you know, pat pat's, whoa, no, not a lot of room they are not in the -- if i go to the datacenter, it's highly unlikely that i will see intel >> it is not performing well today, even with the halo effect surrounding nvidia we got a pretty good jobless claims number earlier this morning, and now, some long-awaited pmis. let's get to rick santelli hey, rick. >> yes, jobless claims were well behaved, and interest rates didn't go up much. they're coiling, but this number, look at interest rates pop. s&p global, pmis, stronger than expected manufacturing, 50.9. that's just the highest since march, when it was 51.9, but let's look at services services at 54.8 the best since may of last year. we'll call it one year now, these are preliminary readings they can change. and if we look at the composite, another blockbuster.

54.4 that's the best reading since april of '22 we'll call that basically two years. so, we are now up close to 4.47% in the ten-year, which is four basis points now higher than it was yesterday after trading below yesterday's low. it's now above yesterday's high. that's an outside day. pay attention, technicians, and "squawk on the street" will return after a short break

take a look at nasdaq 100 gainers this morning the nvidia effect with nvidia at the top of the list. not far behind, though, is asml,

amd, micron, qualcomm, broadcom, kla and a lot more s&p hanging on to 5314 off the opening his.gh stop trading with jim is next. ps are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one. [busy hospital background sounds] this healthcare network uses crowdstrike to defend against cyber attacks and protect patient information. but what if they didn't? [ominous background sounds] this is what it feels like when cyber criminals breach your network. don't risk the health of your business. crowdstrike. we stop breaches.

her uncle's unhappy. don i'm sensing anlth underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for.

let's get to jim and stop trading. >> you'll see a semiconductor related company, noble foundries, down badly today because its largest shareholder selling about almost a billion dollars worth of stock it's killing it. plus also because there's still -- they still will own a lot after. this is something that has been the achilles heel of the stock, when would they start dumping and they're dumping. even though you have a foundry of summer now, it can't participate in the love affair it's it's not there. >> the 10-year 4.88 took wind out of the rally. >> this is that we get a lot of data higher for longer we had the service number not good this is just a tug of war we're going to have. higher for longer is producing great stock prices before you sell think about what will happen when done with

higher for longer. >> it was interesting to watch david solomon collide with the goldman house view and argue for no cuts this year. >> that's part of the new goldman, which i like, which is independent thinkers, not one voice, kostin and stuff, i adore, but i do think -- i don't want people to say we have to sell because of that number because a lot of numbers have been softer, and if you go look at target and walmart and you talk to these companies that really have to do with the consumer, you realize the consumer is pulling back i had cisco on last night. the biggest provider of tall restaurants and they said look, there's a big rebellion going on against restaurants that have raised prices. that's what the fed wantsis a rebellion against prices and they're going to get it. >> so how about tonight? >> okay. i have zoe et tis which is bird flu, elf, the short squeeze and then schwab which is a company i think the world of, down a little bit, they had a day where

they're talking about what's going on the stock was at 56 when everyone was dumping on it take a look at what its done now. schwab where my travel trust is located does a very good job and i think the stock -- >> you've seen some of the charts of home households with exposure to stocks i mean it's up. >> oh, 62% up from 52%. when we got back to even in 2013 before the great recession people own stocks. do they own the right kind of thing, maybe they own the double and triple etf to -- for -- to be able to buy, all the toxic waste and see how much you can put in, i don't know. >> that's where you come in. we'll see you tonight. >> thank you. >> "mad money" at 6:00 p.m breaking housing data in a minute those higher yields veha the dow down 220 the sushi- this is clem. like sushi classy- clem's not a morning person. i'm tasting it- or a night person. or a... people person. but he is an “i can solve this in 4 different ways” person.

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good thursday morning. welcome to another hour of "squawk on the street.

i'm carl quintanilla with morgan brennan, live at post nine of the new york stock exchange. david and sara are on assignment the nvidia rally that we saw at the opening bell having some trouble competing with these higher yields after we got pmis that shows business activity growth hitting the highest level in a couple years and the 10-year back just shy of 4.5. >> we're going to dig into that this hour. 30 minutes into the trading session here are some of the movers we're watching this hour. shares of live nation dropping nbc news confirming the doj does plan to sue the company for antitrust violations we'll have much more on this developing stories and those shares down 2% big changes coming to dupont the company planning to split into three replacing its ceo more on this big mover ahead in the show, too. those shares up about 1%. finally we are watching the vaccine makers on the move following reports that moderna and pfizer are in talks with the u.s. to develop h5n1 bird flu vaccines separately pfizer rolling out

another cost-cutting program setting a $1.5 billion target by 2027 you can see both of those companies under pressure right now, but we saw a huge moves across the vaccine makers in yesterday's trading session. >> meantime, santelli has been busy and new homes back to him. hey, rick. >> yes carl, indeed, all of these numbers are coming in a little different than expectations. our april read on new home sales expected to be around 680,000 seasonally adjusted annualized units comes in at 634,000. that's the weakest level since november, so, obviously, the weakest since the year began precovid, last month was originally released at 693,000, which is almost identical to february of 2020 we retook that area, even though it's lighter than the '08 area, but that was revised now down to 665,000. so this is a double whammy number

not only is it weaker than expected the revision is bigger than expected in the wrong direction, and to dig down even further in the new home sales numbers and why they're impacted by high priced housing and high interest rates, we turn to diana olick. diana? >> rick, it's all about prices and mortgage rates and affordability. not brain surgery here prices up 4% year over year in april to $433,500 for a new home take a look at where mortgage rates went in april because these are signed contracts, what the numbers are based on people out shopping in april, when mortgage rates started in the around 7%, shot up to 7.5% we talk a lot about the big builders buying down mortgage rates to get byers in the door they have been pulling back on that according to a lot of ceos from earnings report dr horton did very well in its last quarter but did note in the home builder sentiment report they're starting to bring back more incentives again because when rates get 7.5% it becomes

unaffordable 9.1 month supply up from an 8.3 month supply in march, so builders are getting more and more supply, which could be concerning it would make you think they would bring prices down, but again, if they're buying down the mortgage rates, that would help but those buy downs do hit big builder margins and we have been seeing that a little bit in the last couple quarters i will say again, on prices, up 4% we've asked when builders will start to lower prices, some have a little bit, but really they say they can't because of high costs of land, labor, materials and also new rules regarding sustainability and building homes that adhere to new rules that were from 2019 about keeping those homes in those environmental standards. they're talking about much more costs for the builders and that makes it more difficult for them to lower the prices. again, a huge miss on new home sales in april, morgan. >> yet, affordability challenges persist. thank you. our thanks to rick santelli as

well nvidia is the story of the day it's what's leading the nasdaq 100 and also a big mover for the spx even as we see gains fade here a big beat, big outlook, stock split, dividend hike, shares rallying about 8.5% right now topping $1,000 a share record highs kristina partsinevelos is here on set with more on wall street's reaction to the latest results and outlook. kristina, we have seen a flurry of price target hikes. lot of bullishness on the street and yet, prices were not or targets i should say were not high enough. >> it's funny, i feel like you were doing a checklist with everything they succeeded with this quarter and to your point 89% of wall street analysts according to fax set rated a buy with a target of 1142. what nvidia did was deliver once again. earnings guidance beat like you mentioned, consistent with those buy side whisper numbers, fell in line with what the street wanted it was ceo jensen huang's earnings call comments that squashed any fears about a demand lull during the

transition from their older to newer chips set to ramp in 2023. that would be the blackwell. he said, quote, they will easily transition from h 100 to h 2u7bz, to b 100, all you need to know is the easy transition. we will see a lot of blackwell revenue this year. many expected those revenue streams only to hit early next year with demand so strong, it will surpass supply this year. that was seen as a positive and you saw the reaction in the stock and analysts rushing like you said to hike their price targets as cantor fitzgerald the midnight train of nvidia continues to execute and unlike the small town girl and city boy, jensen knows where he is going. the praise from ai adoption growing beyond just cloud service providers to include health care, auto, there was a shout out for tesla and 359s,000 gpu enterprise and sovereign ai, nations creating their own ai structures with their workforce expected to bring high single digit it billions this year, first time they provided a

number sort of and then also you have 10 for 1 stock split dividend stock the cherry on top for investors given that nvidia is the pure ai play and guidance is bringing up amd, tmcc, marvel not on there, safe to say marks nvidia - >> bottom line, ai demand accelerating in the near term not slowing down, and you have the software ai players like plan ter and dell and mongodb higher as well you had a busy 24 hours. >> i have. >> thanks for joining us you mentioned the software, the cfo of snowflake they have to lower their full-year guidance because of the cost of gpus. costs for one person is riches for another >> good point. thank you. for more reaction to nvidia's earnings bring in bernstein's analyst stacy rasgone raised his price target from 1,000 to 1300, outperform

rating we've been talking about nvidia forever with you now you've been bullish for such a long time and basically said we're still in early innings now that we've seen another quarter with revenue more than tripling year over year, and no signs that this is going to abate, at least in the near term, your thoughts? >> look, i think kristina hit it, like the numbers here were very good. i think that was expected. i think the numbers themselves were in line with the buy side whispers that would have been good enough it was his commentary. there has been a lot of fear about some kind of transition phase in front of the architect. it's very clear that is not happening. he really kind of leaned in to the blackwell comments in terms of timing of availability of those earlier than ever. you're absolutely right so many other pieces of this right now there is, you know, there's customer diversification, people worry it's only a few guys buying parts

they said large cloud, only like low 40 percentage of the data center revenues. enterprise and customer diversification. network offerings, the ethernet part, multi billions, sovereign ai billions this year. auto business inflecting, software ramping and there's a continued road map evolution here everybody is -- blackwell, that's not the end of it they've got new products coming out on a one-year cadence, ruben, supposedly next generation, that will be here into next year i still think we're very, very early on this, and i still think we're looking out five or ten years, we're hearing some really big numbers for the opportunity. i think those numbers are very, very plausible i still like it. >> okay. i mean we're very focused on gpus and the transition from what's currently online market as you mentioned hopper to the transition to blackwell, the next gen chips that are going to hit later this year and that

production is already starting to ramp for. but should we be talking more about the software stack and the inferencing capabilities we know is such a big mighty part of the moat nvidia has been building around itself. >> software is important this is one of the issues most of their competitors have. there are competitors. enormous market. people will try to get in. you have other merchant suppliers, hyper scalers building their own chips a bunch of startups. i think of those, it's the hyper scalers that seems like the most real and that will be important. however they do tend to be mostly for internal workloads where they don't need the software lock in as much or anything that's basically an end customer the lock in is hugely important. it's not just the programming environment, it's also just the optimization and what that enables in terms of time to market you can buy the nvidia parts and put them in and you're up and running in days and even their closest competitors it can be months, right. the startups have the same issue above and beyond all of the

other issues of being a start-up it is really, really important and this is something -- they're not coasting you listen to the events they are about software as much as they are about hardware. they're continuing to expand their moat everybody continuing to play catch-up on what is a moving target. >> i wonder when you talk about the end markets if you were surprised at some of the commentary where the sweet spots are? we had a discussion with jim about autos, for example, which i don't know, is that new? >> i don't think it's new, but it's nice for them to call it out specifically some of these markets like auto is a big one, but they got a whole autonomous driving element which is even outside of this, auto is a massive inference activity autonomous driving massive inference activity and there's a ton of ai that's needed to train the models for that and we're seeing that health care, you know, people talked about moving from, you

know, drug discovery to drug design and using ai, you know, to crack drugs they've used ai to crack the protein problem without the fold these are problems that were unsolved for decades and these things are now starting to crack. these are the types of end market and enterprise applications that i think would be the sweet spot for what we're seeing right now in ai. >> stock more than doubled since the start of the year, more than trimds over the last months. we saw the dividend hike and stock split coming as well what are the risks is there any reason to not own the stock at these levels? >> look, there's always risks. the sustainability will be a question because the numbers have gotten so big so quickly, you wonder, although they keep powering through that. people always worry about competition and there is competition. there always will be again it's on them to make sure that they keep their moat wide and they are doing that. you know, valuation, i mean the

stock is cheap i keep saying this morning, the more the shares go up, the cheaper it's getting because the stock is going up. our numbers went up more than 9% today. the multiple is going down today, not up. but those are the kind of things i think the longer term risks is eventually there does need to be a return you talked about snowflake lowering margin guidance because of the cost. there needs to be a robust return on these assets and i think that there will be i think there's plenty of evidence people are building business models on this. that's the longer term risk, people want to be aware of and watch for as we move over the next several years is there really like a really viable and significant end market where you can deploy these assets to generate either revenue or cost training. >> we're seeing an air pocket there if you will between the investment - >> we're not seeing anything we're not. >> for nvidia, within the market more broadly as we see this massive investment into

artificial intelligence and then the realization of monetization. stacy, thanks for joining us shares of nvidia up 9.5% right now. just under $1,040 per share. as we head to break our road map for the hour what does nvidia's bullish outlook mean for the record-breaking market we'll discuss that even more and the questions around rate cuts ahead. >> talk about the nvidia halo effect other names moving in reaction to that report. >> and we are watching live nation nbc news confirming the justice department is planning to sue the company over antitrust violations we have got such a big show ahead. "squawk on the street" is back after this break don't go anywhere. .

the latest earnings and outlook fueling the markets competing with rates front and center goldman sachs ceo david solomon does see zero cuts this year and jpmorgan's jamie dimon speaking on cnbc asia saying a hard landing for the u.s. can't be ruled out. >> i look at the range of outcomes and again the worst outcome for all of us is what i call stagflation, higher rates, recession, corporate profits will go down and we'll get through all of that. the world will survive that. i think the odds is higher than other people think. >> we'll talk about ha this means for the record breaking rally joining us sam, chief

investment strategist raised his 12th month target. good to see you. >> good morning, carl. >> sam, discussion about the 100th trading day of the year today and what happens when you hit that day and you're up 10% year to date it's rarely a negative full year it has happened. i just wonder, what history is telling you about this moment? >> sure, carl. there have been a lot of things that have been favorable so far this year. january 19th we recovered everything we lost in the 2022 bear market. on march 28th we hit our 22nd all-time high, now we're at 24 the first quarter was the 11th best since world war ii and we also just recovered on april 19th the recent 5.5% pullback. history does say that we probably are due for another decline of 5% or more, but if that low comes in before july

31st, every time that that has happened since world war ii the market was up for the full-year. >> do you think the risk of a melt up is more acute now than it was six months ago? >> well, i think that it's being driven certainly by companies like nvidia semiconductors on the industry level and, yeah, i think investors continue to focus on the large caps mainly because the small caps, while they look very attractive from a fundamental perspective, really are not being given the relative benefit of outperforming the large caps mainly because the fed remains slower to lower interest rates and there's still that possibility that they will cut only once or no time this year. >> so in light of that, the fact that we got these hotter than expected pmi readings this morning, yields move higher in response to that, that comes after fed minutes yesterday we knew coming into the release we're going to be a little more

hawkishly tilted but sent the market lower how to think about the economy where the fed goes from here this year? >> yeah. i think the way to think about it is, growth looks fine at this point. growth is going to be somewhere in the 2.5% range, we think. consumer spending is on a good trajectory so the fed has a luxury of waiting. so they're going to wait until the core inflation numbers look better than they did in the first quarter. so we see improvement over the next several months in the core inflation numbers, we think the fed may cut as soon as september. if the inflation numbers stay high the fed will stay on hold we think those are the two likely options at this point >> so when does good news become good news and bad news become bad news it does seem like the inverse is how we're trading in the markets. >> i think that the growth numbers should be taken relatively positively by markets at this point. as long as the economy is not

overheating, which is what the data have shown, we don't look like we're overheating at this point, and growing too much, and as long as that's the case, as long as the growth numbers stay okay, the focus shifts to the inflation numbers. and if the inflation numbers improve at this point, i think that's the best possible scenario for markets. >> sam, i'll give you a chance to weigh in on that. the minutes were interesting yesterday, the bit about, quote, various participants being open to tightening if inflation doesn't cooperate. a lot of discussion of what various means. >> that's true i mean i would have to say, i agree with dean on most of his points that our belief is the economy is growing, that we are likely to be seeing the first cut in it september. but i would agree that if there is a wild card it means that fed probably will take its time, reminding us once again they are data dependent ai is driving nvidia and tech, but e.i., earnings and

inflation, will be driving the market forward and if inflation remains fairly sticky that could cause the market to spin its wheels. >> sam, volatility is very, very dormant in this market does that surprise you given the fact that you do have murkiness in the data? yes, i realize it's still strong and resilient but also keeping the fed sitting on its hands right now and given the fact that we are in an election year? >> well, election years actually do a little bit better in the memorial day through labor day period instead of being up only 1.6% since world war ii, they are up 3.7% going back to world war ii in the election year what we find is the frequency of advance goes from a coin toss up to almost 80%. so i would tend to say that price appreciation is likely to continue an upward trajectory, but i agree there are reasons why i think volatility could be picking up as well. >> finally, dean, people were looking at these pmis this

morning and paying a lot of attention to the employment component which was down for a second successive month, it doesn't have the best track record on predicting nfp, but are you looking for softer jobs numbers in the months to come? >> i think the labor market should continue to moderate somewhat, but i think the -- all the signs say that job growth will remain healthy. jobless claims remain low. corporate profits, corporate profit margins mentioned by corporate profits as a share of value added is close to the highest levels since the 1960s and that's not the kind of environment where corporations will start laying off people in large numbers. we think job growth will remain healthy in the months ahead. >> guys, really appreciate that and sam, i love the e.i.-a.i. dichotomy. haven't heard that one yet thanks, guys. >> thanks. >> thank you. up next, a major shakeup at dupont and shares are, well, now terng lower. we're going to tell you why after this a quick programming note as we

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dupont splitting up its businesses and making changes at the top as well. seema moody has been tracking that action and joins us with details. >> carl, do not think there's not an nvidia angle here dupont split into three will make its lettryfycation businesses stand-alone company that provides electronic and thermal materials advanced packaging and clean rooms by chip companies and told by sources nvidia is a customer of dupont as a conglomerate, dupont shares have underperformed its pearce over the last year due in part

to liabilities pfos chemicals and under appreciated value by investors. analysts write this morning dupont's assets together didn't play well, but separately they look pretty darn interesting the transaction is expected to finalize in 18 to 24 months. its water filtration business will compete with zilom which has seen shares rise 25% this year, pure play water strategy the split comes amid a frenzy of spin-offs, restructuring strategies we've been seeing in the industrial world from ge which most recently spun off ge vernova, utx, spun off into carrier and raytheon and gm has seen shares rise to a 52-week high in recent days. guys >> seema, i think about dean drive the analyst at rbc using this term for probably close to a decade now and still appropriate, the urge to demerge. we have been seeing this throughout the industrial sector

and really throughout conglomerates in general for a number of years now. dow -- dupont itself has been a real example of this portfolio simplification we've seen. i mean, it was dow dupont brought together 2017 and then you saw that split into three, back in 2019, so right before the pandemic and now to your point to be seeing dupont again, simplify further into three businesses speaks to how investors are courting these simplified, straightforward narratives within the market. >> yeah. >> i just wonder if there are other contenders out there in light of this trend? i mean some of the names that have been brought to my attention are honeywell which had its own spin-offs a number of years ago you mentioned 3m we saw them take care of the health care business some of the other bigger portfolios whether there's more work to be done? >> we spoke to goldman's head of global banking a couple weeks ago who said that expect more spin-offs and deals in the

industrial space because if you look at the companies that have been leading m&a it's been health care and industrials over the last 10 to 12 years. now, with this growing interest in pure play simplified stocks among younger investors expect to see more. you mentioned honeywell. companies with the largest cap among the industrial space, i would imagine we would see more action in the coming months, especially, again, given the rise of pure play strategies, morgan. >> carl, also worth noting it's not just about the spin-offs themselves, but it's also about utx mentioned, raytheon technology, saw that spinoff happen and then you saw what was left of utx merge with raytheon, the defense contractor, at the time so you can argue that it's really about not only simplifying portfolios but beefing up those simplified portfolios i would make the argument for bhpa name we haven't been talking about as much on cnbc

but it represents a huge, what would be the biggest ever, mining deal takeover deal if it actually is successful in taking over the assets of anglo-american we know that they have put several different offers in front of anglo everything has been rejected as of yesterday, anglo said okay, we're going to extend the window and start to talking about this and that involves spin-offs of other assets. >> coming off copper's worst day in several years eamon javers. >> we're getting the details here of the depth of justice's case against live nation against merrick garland, who says it's time to break up live nation and ticketmaster we'll hear from him at the top of the hour. we're getting these details now of what's in this case against live nation from the department of justice these are the elements that the department of justice says are

anti-competitive in live nation's behaver they're citing a relationship with oak view group, which is a potential competitor turned partner the department of justice says that described itself as a hammer and protector for live nation. also citing the fact that the company allegedly retaliates against potential entrants into the market, potentially against one firm unless it stopped one of its subsidiaries competing to get gain a foothold, threatening and retaliating against venues that work with rival companies and locking out competition with exclusionary contracts they lock concert venues into long-term exclusive contracts so that venues can't consider or choose rival ticketers blocking venues from using multiple ticketers they say is a problem in terms of competition. restricting artists' access to venue, saying live nation ticketmaster has gained control of key venues including amphitheaters through acquisitions, partnerships and

agreements and finally acquiring competitors and competitive threats saying that they've acquired a number of smaller and regional promoters that the company had internally identified as potential threats in the marketplace so all of that, the department of justice says, is the body of behavior they're saying is naufl and anti-competitive and they brought this suit against live nation and ticketmaster. we'll hear from merrick garland and the team of the department of justice at 11:00. we'll get more color in terms of where they think this case might go one of the headlines merrick garland sayingit's time to break up live nation and ticketmaster over to you. >> allegations you've run through us thank you. shares down 5% want to bring in julia boorstin for more or color on the live nation side of things. julia? >> yeah. i mean, what's really interesting here, morgan, is this all dates back to the merger between live nation and ticket master back in 2010 and the company would argue that their market share has actually

declined ticketmaster's market share has declined since that merger 14 years ago. we have a quote here from live nation, they say, it's, quote, ab stourds claim that live nax and ticketmaster are wielding monopoly power live nation in no way fits the profile saying service charges on ticket master are no higher than elsewhere and frequently lower. a couple details here. i think live nation is going to focus on the fact that its artists that set prices for their tickets and that venues set and keep the majority of ticket fees and while live nation does own and control some venues, certainly not all of them, they do ticketing for, they also say that every year competition drives live nation to earn lower rates from concert promotion and ticketing and they do stress that ticketmaster's market share has decreased and more ticketing competitors have emerged since that merger between those two companies back in 2010, that vertical merger

there. we see shares are down 6% on this news. >> eamon, whether on the doj or ftc side, are there historical precedence for breakups like this i guess there are. we're talking about antitrust, right. are there recent ones? we know this administration has been pushing pretty hard on the topic of antitrust broadly. >> run hard through the tape remember the biden administration ends at the end of this year and we'll see whether the president gets a second term. this doj has been aggressive on antitrust and this case now timed just before memorial day, just before the summer concert season is going after the size of live nation in the press release that doj is putting out about this, they cite the sheer scale of this entity saying live nation owns or controls more than 265 concert venues in north america, including more than 60 of the top 100 amphitheaters in the united states. it generates over $22 billion globally in annual revenue so that gives you a sense of the

scale of the industry that they're taking on here and the administration officials i've talked to on antitrust have said they're going to continue to be very aggressive through the rest of this year i don't think this is necessarily the last action that we'll see on antitrust from the biden administration between now and the end of the year. obviously, this one sets up a big fight with live nation. >> more specifically on that one, julia, it's interesting to see the music industry weigh in on this. "rolling stone" with their post a couple hours ago points to frustration the origin of that frustration really beginning with taylor swift and sort of the difficulty in getting tickets and what some argued was pricing that was not reasonable. i wonder where you see the origins of this happening? >> yes this was -- the wheels were set in motion for this before that taylor swift ticketing issue there were challenges purchasing taylor swift tickets and live nation and ticr said that was a result of a cyberattack, not anything that

was specific to them or anything that indicated any antitrust issue. it's been interesting because in recent months as taylor swift has taken her tour overseas a lot of people have been saying, it's cheaper to go to taylor swift concerts overseas. live nation were to respond to that because of anti-scalping laws in europe that prevent certain resale practices that are allowed here in the u.s. so live nation is going to be fighting back to those concerns. obviously, there are some fans very eager to get their hands on tickets for big concerts including for the likes of taylor swift and so i think that we're going to be hearing a lot about some of these big name artists because there is so much interest from her fans and also sort of questions about where these fees go and live nation is going to say they're not taking the majority of these fees they keep pointing out in this blog post they posted here that their take rate, their commission rate, is 5% which they note is lower than airbnb and uber i think we'll probably hear

about this taylor swift ticketing issue and pricing internationally. >> and carl, boy, the artists i would love to hear from today is eddy vetter from pearl jam remember the years that pearl jam spent fighting ticketmaster unsuccessfully trying to break their grip on this industry. some of these artists had to knuckle under over the past decade and i wonder how they're feeling about all this today. >> 30 years ago this month was that vetter dispute. eamon and julia, bet we'll be learning more. >> oh, my god. >> aged. >> meantime nvidia does it again adding to gains, near session highs even as the broader tape has lost some ground it is the number one ticker searched on cnbc.com three times the normal volume of surged clicks is the stock a buy at these levels? we'll talk about it after a break.

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nvidia's rising tide lifting a lot of boats today let's get to dom chu with more on what's moving around the space. >> the ripple halo effects start off with the semiconductor companies out there, specifically those that are geared more towards either trying to make competing products of their own against nvidia or maybe some of those in the ecosystem as well. check out events, advanced micro, up, put butt now down, super micro makes the high end servers up 1.5% there. driven a lot by nvidia another place to watch is in enterprise technology. people who make some of the server computers that go into the data centers dell technologies and hewlett-packard enterprise both up dell technologies up by 5py.5% both companies getting in essence up tactically over evercore on their earnings reports later next month then check out what's happening with the data centers companies, the real estate trusts geared

towards data centers like digital realty each up fractionally as well there is that ripple effect we'll see whether or not the coat tails are long enough for this to be more than just a days long rally perhaps weeks or quarters depending on the size. >> thank you dominic chu. for more let's bring in senior analyst vijay rickesh, ups his target to 1180 good to have you back. we keep coming back to autos and talked about it with jim and got your attention in the way in which it might become one of their leading verticals, right >> most definitely when you look at ai a lot has been driven by the data center and pretty significant numbers almost 78 billion for calendar 24 we see this as a pretty long-term story. if you look at the data center this year, $95 billion, we see that growing almost $280 billion by 2027, '28, and longer term,

that -- almost $500 billion of data center spending annually. this could be a pretty good story longer term especially as ai stocks become portional to spend. look at shipments today, 5 to 10% shipped annually. >> all right you mentioned sovereign ai let's go back to that. we know that their china business has come down dramatically over the past and shrunk over the past year, but to your point they've talked about this opportunity to work with other governments how profitable, how meaningful is this for nvidia when you start to get into the world of government contracting it can be at times a different business model than working with commercial customers. >> yeah. i think hopefully they have a much bigger wallet when talking sovereign ai they are talking working with japan, europe, switzerland and

multiple countries there, but i think that sets up a different pipeline of projects outside of the whole csps and enterprise we're seeing there it could be very accretive to them obviously, those would be longer term projects as well and so we think that's the next leg of the stool for nvidia. >> appreciate that such an important story today. can't cover it enough. vijay rickish on nvidia. >> speaking of nvidia don't miss the ceo of another chip player raising their guidance synopsis, that's next hour on "money movers. those shares are up 4% after earnings as well still to in a look at the ai boom fueling demand for power. our pippa stevens is on the money trail live in coolidge, arizona. >> hey, morgan i'm at a new 2,000 acre solar site that will be providing power for what else but a data center, this one for meta.

all the details up next on "squawk on the street.

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kardia.com or amazon. energy fuels, a leading american uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. energy fuels.

welcome back energy developer announcing a major investment into one of its projects in arizona fueled by the inflation reduction act. pippa stevens is live in coolidge, pippa? >> hey, morgan orstead is wrapping up construction at this $1 billion solar and battery storage site about an hour outside of phoenix. the news today is the company is announcing a $680 million investment from jpmorgan it's a tax equity deal meaning jpmorgan provides financing in exchange for tax benefits. now this structure has existed for years, but what's new is that under the inflation reduction act, jpmorgan can now sell those credits to another company, unlocking a big new funding pool for renewable energy >>, and it really opens the doors for a lot more corporates

and companies with tax liability in the united states to come in and help support clean energy projects really unique structure we hope to replicate over and over again. >> reporter: rising to more than 100, the new ira rules could open up $47 billion in tax credit sales this year, rising to more than $100 billion in 2030 according to evercore isi this project called the 11 mile solar there are 857,000 solar panels across 2,000 acres and can power about 65,000 homes, but two-thirds of the power is going to be for a new meta data center being built close by. orsted sells the power to srp, a local utility, which sells it to meta to power that data center and guys, as you've been talking about the huge gen ai boom is leading to a whole lot of new electricity demand. >> it's fascinating the idea

that you can then offload these tax credits to another buyer do we know how many of these projects are in the works and when we talk about the fact that this is specifically geared at renewable energy, what are the types of renewable energy? something like nuclear potentially involved as well? at renewable energy, what are the types? something like for example nuclear potentially involved as well. >> reporter: yes, the ira extended the credits and then it also introduced new credits for projects like nuclear and hydrogen prior to the ira about $20 billion in tax equity deals were done per year by the end of the decade it could rise to 100 billion because of the tax provision. it opens up a new stake for corporate buyers and so farseeing deals north of 90 cents on the door, it's good for

campaigns companies that want to reduce their tax, and it means money to get the projects off the ground. >> great look at an important story for the industry and the economy, too more on boeing and some fresh headache this is morning when "squawk on the street" comes back after this. and they don't 'circle back', they're already there. they wear business sneakers and pad their keyboards with something that makes their clickety-clacking... clickety-clackier. but no one loves logistics as much as they do. you need tamra, izzy, and emma. they need a retirement plan. work with principal so we can help you with a retirement and benefits plan that's right for your team. let our expertise round out yours.

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welcome back to "squawk on the street," shares of boeing are under pressure down about 3% right now. let's get to phil lebeau with the latest >> there's a conference right now and the cfo is beginning his discussion at the wolf research conference talking about the latest headlines that came out yesterday that china is pausing deliveries from boeing they have taken about 22 aircraft this year now the country's main regulator which is the counter part to the faa is saying we want to know about the batteries in the cockpit voice recorder okay now they want to look at that. so this is having them pause deliveries and brian west is saying near term deliveries expected to be roughly in line with the first quarter may be

slower than first quarter, delivered 83 planes in the first quarter and he said the words putting pressure on the shares, cash flow could be impacted. they have not given full year guidance, they said low single digits, brian west has not gottthe point he's talking full year cash flow but don't be surprised if we hear something closer to neutral or maybe even cash usage so those are things the people are focused on near term seeing an impact because they have fewer deliveries. >> i'm going to ask the question this is a company plagued with issues for years look no further than the turbulence situation we saw this week but the defense in space is not doing well star liner, they have a helium leak there does this -- do they need a new

overhaul of the board, of management i know he's leaving, departing at some point -- >> yes, and they replaced the chairman of the board. the argument has been made maybe you need more outsiders there. they would argue, and dave calhoun that has said this, they already brought in a slew of outsiders looking at the company taking a different approach, steve leading the search for a new ceo. it's not going to happen i understand people will say should there be -- they had their annual meeting, the board was all re-elected, so that's it in a nutshell. >> the faa administrator on abc, talking about the 90 day safety plan due next week >> correct that's the end of the 90 days. >> yes >> there have been checkups at 30 and 60 days and then the 90-day check up they say, in a perfect world for boeing the faa says we look at your processes we agree with what you're planning on doing go forth doesn't mean they don't continue

checking the planes but it is an important milestone if they can get it >> we'll have to see where this goes from here it is kind of incredible to see what's going on with what is literally the crown jewel of american muftunganacri >> see you soon, phil lebeau market wise, 5300 trying to be held by the bulls in the wake of the higher rates on the pmi numbers. stay with us when you need to prepare for unpredictable adventures... (gasp) you need weathertech. [hot dog splat.] laser measured floorliners front and rear. [drink slurp and splat.] (scream) seat protector to save the seats. [honk!] they're all yours! we're here! hey, i knew you were comin'... so i weatherteched the car! can we get ice cream? we can now. kid proof your vehicle with american made products

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good thursday morning and welcome to money movers i'm carl quintanilla with morgan brennan here on the floor of the new york stock exchange. today nvidia surges to another record high taking the nasdaq with it. we'll talk to an analyst who said the company left a lot of gas in the tank. >> a look at the other companies benefits from the nvidia boom. >> synopsys is with us and newton investment management john porter joins us, breaking down the sectors he's buying on any bullbacks. we are pulling back from the opening highs today. th