has gone on, and it was 235 when we started and now it's down 40 points and i don't know what that says about the overall average. probably not much. >> make sure you join us tomorrow. >> no jobs report. that will be a week from tomorrow. "squawk on the street" is next. >> join us tomorrow anyway. >> it's up to you. good thursday morning. welcome to "squawk on the street." futures will be stung by salesforce today. and the gdp the lightest in two

years. the roadmap will begin with salesforce weighing on stocks ahead of the open and shares plunging as the company reports weaker than expected revenue and a soft guide. >> kohl's with a massive mess, and footlocker saying the turn around strategy is showing signs of life. that takes us to the consumer. the cruise lines, the latest to turn to discounting and mcdonald's pushes against runaway prices. >> the current quarter guide overshadowing an earnings beat. there was a discussion about the market last night on "mad money." >> the environment is not so bad. you are not saying it's gotten

tougher, and i am not hearing that from you. >> you can't control the buying environment, and we are in the post pandemic reality or the buying environment has been measured for enterprise software companies, and not just a company like salesforce but many companies. what are we going to focus on? focus on improving our cash flow and margins. >> we talked about softness and software all week, and this decline is historic for crm? >> yeah, it's single digit growth. mark was a little more bullish, and i will give you some of the points on the call. taubgdz about sales moderating after a strong fourth quarter, and, and talked about elongated budget scrutiny, and mark didn't talk about that. licensed volatility, and he did not give me that. measured environment, he did not

give me that. so what he did say is overall things have been tougher. i think that to get as tkpwrapba lure as the -- they have not seen that level, which i think is related to chat. >> to chat? >> yes. >> let's make the point more clear here. what the question i am hearing is, all right, if there are longer deal cycles, are companies starting to repurpose some of the spending away from these companies to ai, to whatever they may need? i don't know. you say chat, and i am not sure what that means. >> you are right. let's get more granular. there's a repurposing, and there's a belief that maybe 1 to 3% of the people think it'snot

needed so let's hold back and not buy a software package because we may not have as many people, and that's the point. >> some are saying i am repurposing, and at some point i could bring pcs that are ai enabled for my employees, and do we need slack? >> well, a positive piece, it was crystalized and everything, and quote, maybe there's a structural change going on. in other words, we think it's cyclical and the fourth quarter was strong for salesforce. then things dropped off. did they drop off because of the environment, and i was struck by

the fact that while mark said they have seen this for two years, this was not -- >> i didn't hear you. >> this was not the same. >> wasn't the same. >> it was a big tumble for them. >> you expressed that you are tired of hearing -- >> we budget for x demand and we don't have that much demand and the reason is because people are reconsidering whether they need our product. >> is it a reallocation of cash, and is the dollar spend going to be different? >> i think it's deflationary. i think a lot of people are not needed to do the same task. i am hearing we are hiring 1 to 3% less.

these computers, they are terrific, and all you are doing -- if you are the cfo, you are not saying there's volatility, but you are saying we may not need as many people, and this is happening right now. i have read a lot about nvidia -- >> the journal has a big piece. >> it was kind. it was the tale of two cities. every major company is trying to reassess things because of nvidia. you may think it's next year or the year after, but it's this quarter they are trying to figure out how much nvidia should reallocate people. mark did say fedex. >> and also google may not go after hubspot. >> they are going after it.

>> in -- >> he said we are -- >> i have tape about that? >> on acquisitions? >> no, about hubspot. >> can we listen? thank you. >> we have seen ipcs are going to be growing over time, and the impact will be more relevant in '25 -- i mean, '26, and we believe it will be between 4 and 6% of our sales, and that's kind of how we are looking at that. as we have discussed before, we continue to believe they drive an improvement in reduction in price between 5 and 10%. >> i think mark is buying

hubspot. >> you never call for the sound, and -- >> because it's highly unusual. >> that was clearly -- >> i have not been told that. >> we don't have a cut, and will you tell us what he said? >> first of all, they are my partner, and google is my partner, implying that this is not going to happen because they are both his friends. it may be a frenemy situation, or it may be one of these situations where nothing is going to happen because he knew not to overpay for infermatica. >> we could ask enrique what he thinks about hubspot?

>> i am sure he doesn't have much of an opinion. >> he said it was not to shareholders, but he said customers. >> that may have been a mistake. >> may have been? >> yeah. >> earlier, i said, the stock is down 15, 16, 17 -- kind of auc auc auction nearing, like scott wapner said yesterday. the focus is more on cash flow and the street doesn't want it to be on cash flow? >> they wanted it focussed on margins, and it was all about margin improvement, which they delivered on. >> mark was a little conflicted on the fact that they gave the activist what they wanted. >> you can't do anything -- well, maybe you can, but in this case, your customers are

ordering a little less or taking longer -- >> he's going to make an acquisition. that's what he's saying. >> so he's going to buy hubspot. but the fdc won't even let the booksellers -- >> yeah, that's the question for alphabet. >> the ftc is ony team. they were going to go have to by tapestry -- >> software is waiting in the s&p now lost now two semis. >> i was mocked and i took it personally, and i said nothing. it's enterprise software that is problem. >> i didn't mock you when you

said that. >> play it. >> he mocked the heck out of me. >> why not? >> there are two kinds of engineering software going on -- i mean two kinds of software, engineering software, and that's cadence, and that's on fire. nvidia, they are all engineers and they don't do any selling because they don't need to. >> yes. >> that's the one where it's most impacted. chatgpt has gotten better and

better. >> welcome back, cotter. >> identity is still being stolen. this is that long recovery from when he was hacked. remember, he was hacked? >> i remember, yeah. >> david, he did something shocking. i asked, were you hacked? he said, yeah, i was hacked, they crushed me. and usually you would say if you want to look at the recovery -- but he said, i am going to recover, and it was refreshing to hear that something was bad. and kohl's, those numbers are not so bad. then he said, we did badly, and i didn't have to worry. >> take a look at the premarket. as for retailer, we will get to

burke, dollar general -- >> burke was great. how much of it is the movie? "barbie"? have you seen warner brothers? how are they doing -- >> i lost you at burke. >> berken stocks. david, mark my words, mattel and warner brothers discovery. huh-uh. you killed paramount. >> yeah, it's like "south park." >> are we going to tell that joke every day? >> i was told you have to say it 18 times before anybody hears you. >> going tha ao ve big impact on

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footlocker, and of course, we mentioned some of the other names, jim. kohl's will be the biggest percentage move. >> yeah, we love him. we love those numbers. it's surprising, colkohl's is challenged. we know that cosmetics are weak except for e.l.f. cory barry came on and said we will have the pcs, and they still can't sell the appliances, but that's what they said at

lowe's. >> yeah, we mentioned hp before the break where pcs were up three, commercial up six, and consumer down -- >> when we have it in the stores, we will see best buy going to 90. cory barry is fantastic. david, these ai pcs, it will be as hp said, and it's going to be the largest pc refresh in history. you will have to go to best buy to see if you want a dell or hp. dude, listen to me, that stock is getting much higher. >> dude, you will get dell? >> yeah, i would. do you see the stock? >> yeah, it's the server business and nvidia. they put the service together that includes the gpus from nvidia, and power all the large

language models, just to take you through here, that stabilize the enterprise business, to take you back to the first segment. >> a woman from philadelphia, ruben, who is deep mind, you know, she's -- the apple show, "deep matter," so she's discovered "deep matter." >> so you think it will be called the ruben? not like the sandwich. >> michigan. great movement out there. the zimmerman comes after the rueben. >> there's a trillion microns --

it's a trillion. >> what? >> a trillion. and dr. deb said it's mathematical. it's too big to be done other than mathematical. >> i don't know what that even means. >> you put a trillion transitions on it, and that's what jensen has in mind for us, is a trillion transistors. >> i like how we were trying to talk about specialty retail and consumer and it gravitated back towards nvidia's next chip. >> my partner is on the case when it comes to nvidia. you were on nvidia a year ago when the thought came out, and he thought the dog was art tpeus. >> we will talk about it every day, every segment, we will talk about the impact of ai and what it means.

>> the ai in the pc is the next thing. do you know is -- it's both. the worlds are colliding. >> when are we getting these pcs? >> september. >> september. back to school. >> best buy -- that's the point. >> do you talk to my computer? >> no, you talk to enrique. >> that's today at noon. >> the europe feed this morning, they had the ceo of nestle'. >> we will talk to disney and mcdonald's, and kramer's mad dash and the opening bell after the break.

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take a look at dow laggards. interesting chart, the year to date performance gap of the s&p to the dow is one of the widest

inecd,nd ror a we know why that's happening this morning. can you catch us anytime, anywhere, just listen and follow "squawk on the street," the opening bell podcast.

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pressure, so there's no question about that. prolonged inflation, and interest rates affects everything from your house payment to student loan payment, and that's true, but people tend to have discretionary categories that they care about, and if you care about sneakers, that's our job to offer that up in the best way. >> that was footlocker ceo, mary dylan. >> she said we are on plan, and the plan is going to take a long time. they did positive comps on footlocker, and champs is bad. when you are an executive and you see your plan coming to fruition, you don't come on and say we are way ahead. it's just a good situation, better than people thought.

i have been waiting for mary to get a good handle on it, and i think she's got it. that doesn't mean the two-year recovery has pulled ahead. the hand of -- it's the findings of a winning hand and it will take a while to play out, but i thought she was strong to morning. >> signs of life, for sure. and not for kohl's, and there's a mixed bag for retail overall. >> dick's was strong. >> yeah, and you are saying, why is everybody going to hollister and abercrombie, and macy's was good. i do think that mary dillon is

good, and -- wow. [ applause ] >> let's get the opening bell here, and the big board, it's logistic properties of america, and it's apparently footwear online and celebrating its 10th listing anniversary. we will keep our eye on crm. >> we are seeing some companies missing the mark like you can't believe. i don't know. this is a have and have-not. there are companies and industries, anything connected with electricity, anything, has every one of these people, they

know you have to have more data. anything connected with electricity is so great that i just cannot stand to hear that this market is about a couple stocks, because the electric grid involves so many. >> goldman yesterday, and mag 7, that exposure now 21% of the prime book and that surpasses last summer. as long that as continues to trend, the index will be fine. >> that's true, the overall index will be good and masks a lot of things. david, you know we do not have enough electricity in the company and the grid is in bad shape and has a 5% growth year after year, and there are companies that do nuclear are doing well, and i don't think the concentration is all that bad. you know why? these companies are spending tens of millions of dollars on

the grid and on chips. that's why they are the engine of the economy right now, now that the government is doing infrastructure -- >> yeah, microsoft alone spending 50 billion, and the numbers are enormous. we pointed that out during the earnings when they came up with the numbers, and we have never seen those numbers with cap x. they are not building the power plants per say. >> no, but they are begging power companies to please be solar. >> yeah, to your point, it may not be fully point. there's going to be a larger question whether the grid is going to have enough capacity to power all of this ai to begin with. >> although i remember back on the dot-com boom would destroy

the internet. >> dark fiber. >> yes. >> who liked that most. bernie? >> quest. >> quest! that was fun. >> they put it next to the rail lines. >> yeah, that was jack ruben. >> all those rail lines made it easy to lay fiber. >> you never know where you will go on this show. you will always learn something. maybe this is all overstated and we can meet the needs, but carl, i will tell you, there are plenty of executives in the power industry who are somewhat concerned about it. >> look, we are getting over and over again that some guy, like -- they have expansion plans, and they are the biggest buyer other than amazon --

>> yeah, you buy the chips and then you have to have somewhere to put them. >> you can't buy the chips without putting them to use because jensen won't sell them to you. you can't stockpile the chips. you can't play that game. >> i didn't know that. you can't stockpile? >> no. >> he monitors your usage? >> yeah, and he's not giving them to people that says i will get to it. >> you mentioned the nestle' ceo who was a guest on cnbc europe. >> yeah, a fabulous interview. >> and they were talking a bit about pl1s, and we talk about

glp-1s, and we have watched the stocks soar on the success of the drugs for obesity and diabetes, and jim's pointed this out many times, could it be helpful for alcoholism? could it be helpful for another -- >> high blood pressure. >> it goes on from there. i would note a note from goldman sachs in which they raised their overall forecast for worldwide sales of the next generation of primarily glp-1 receptors to $130 billion a year by 2030. they raise it by 30% in terms of that. why? well, they think more people will be using them. not the total addressable market going up necessarily as much as the number of adults that will be treated with them for chronic

weight management and another number of potential diseases, jim. as for nestle's ceo, he said when you are on them, you have different needs, more protein for muscle mass. >> he was the first ceo that said there's major impact. i thought, oh, my god, didn't you get the memo you are supposed to be in denial of gp -- well, he's admitting, carl, they have everybody that needs to address it, and there's not enough protein and elderly people get frail and they have to put more protein in chocolate bars. >> we did talk about their new

food line for glp-1 users, and there's a theory that there will be a market for people on those medicines. >> yeah, and there's a lawsuit about formula. but goldman sachs this morning came out with the most bullish report i have seen, and this is what i am telling club members, unless you see a couple lawsuit wins, which they have not come to trial, and missouri is the most pro plaintiff state in the union, and if you bring a case there, people presume you are going to lose. >> mcdonald's, the u.s. chief with the memo about what he would argue is pricing misinformation. you talked to chipotle last night. i don't know if have you seen mcdonald's versus the s&p so far this year. it's remarkable.

>> sit is remarkable. i got the note last night. this is from a terrific guy, joe erlinger. he said the big mack will go to 5.29, and that's an increase of just 21%, not 100%. i read the note and said mcdonald's is not being reported on correctly, so i felt like when i got this i would come forward and say this is a significant change from what a lot of people are saying. >> a reminder that franchisees set the prices, unless it's a corporate-owned store. is this a trend of what? >> well, last night chipotle has

the most expensive fast-food and they are great numbers. great numbers. i asked if he was going to do the same thing that red lobster did with the shrimp, and he said no. he said that would bankrupt the enterprise. he said they have had no degradation in sales. if you make the food fresh and terrific, maybe people will buy it. >> people keep coming. >> yes. >> i happen to like mcdonald's, and i read this and i said, oh, gosh, i make a lot of money, so maybe -- maybe i don't see it, and that's not the way of america because only 6% of the people in this country make over $100,000. >> that's very much the case, and that's for another day and another show, i think. right here we are all about

capitalism and markets. i don't know if you got the memo there. >> yeah, and somebody said people are like a sack of potatoes. >> who said that? >> the wage gap has closed and nod broadened. >> yeah, it's pretty still significant compared to the 1970s. >> or the '80s. >> we're so far afield here. can you bring us back to reality? >> let's talk about the nba and warner brothers discovery? >> it's about time you killed warner brothers discovery? >> i'm not. we are continuing the conversation about the nba and

whether warner brothers discovery will come up with something here. we continue to talk. their focus, as i reported previously, is the potential streaming package amazon has, and our parent company, comcast, seems to have more or less sewn up. is there going to be a dispute about not just meeting on the nicks, but on the nba and what it wants and the streaming partner and that could be represented by max, and it doesn't make sense for warner brothers to stream on max and not have it on tnt. you have to have it on tnt. will there be adispute around that if they are willing to meet the economics of the deal itself. these max rights were written

ten years ago before streaming sports was a thing. we will see how that goes. they're still talking. and saz law went on to say, as he often does, we have a lot of other stuff, nascar, and college football, and that includes college football playoffs, and it has a robust offering for consumers and that's our job. >> that's pretty bullish. >> i don't know. >> there's also his quote, there will be employers that want to get out of the business. they will look to consolidate their streaming business with others and we will look to be opportunistic at that time. >> that's a hope that there's still a shot at getting paramount, and not that they would buy paramount, but there will be an opportunity to pick

paramountees up. >> do you have peacock knowledge? >> what would you like to know about peacock? >> to see how well you are -- >> well -- >> the nfl, how they determine the schedule for peacock, because i was out there in kansas city, and people want the nfl. >> nfl is the key product. >> and olympics, less than 100 days away. >> and that's only available on the peacock, so to speak. broadly speaking, nbc, right here. >> gen z is addicted to the olympics. >> to what? >> the olympics. >> the olympics. >> the olympics are great, and we are not just paid to say that. >> no, you were paid to say that. i on the other hand, i tried out for the olympics, and failed.

>> the rowing team, their loss. >> everything collapsed on you. >> while we are in the media circle, how about pelts. >> peltz is out of disney. >> he made a lot of money. >> made a lot of money? >> yeah, real good basis. >> really? >> only own 36 million -- >> if you buy something in the 80s and sell it at 220. that's a nice win. >> they bought it maybe in the

80s? >> yeah, obviously a shareholder, and -- >> he's the longest term shareholder and has been there for a long period of time. that's where most of the stake was as we made that point many times. >> he's focused on the political regime. >> peltz is? >> no, iger is. >> peltz is, too. you saw the times reporting at peltz, and musk attended trump and bringing them together. it would be interesting if he was on the disney board. >> yeah, waiting for a verdict there, i guess. >> yeah, potentially. >> we showed paramount, and i might as well give a quick update, very quick, because i may have more, but the ellison red bird camp continue to do their work. and that expired sometime ago on paramount, and that's where the

focus is. who knows? will they get to the finish line in a couple weeks, and i am hearing from all sides that they would love to at least have something either done or know they are not going to get there until early june. >> who is running that? >> three different gentlemen. it's not a recipe for success to have three non ceos. like the pep boys. they signed an mda and nothing, crickets. they are trying to narrow the cap between the committee and what they wanted to deliver for the b-shareholders, and we will see if they can narrow that gap there. >> you have a dnr there. >> a dnr. >> do not resuscitate.

what are they being paid? they are in the media business. >> if you have to pay me, it's 30 mill. >> you mentioned elon musk, and there's a report they are seeking to register fsd in china and sell it as a monthly subscription, and then the hybrid, and then jeep saying they will roll out a $35,000 ev soon. >> i think tesla is in league with nvidia to create autonomous machines that will do far more than be cars, and that will be the savior. i think that can happen. a autonomous machine can do much more. i think you can say go and get wings and bring it back. >> will that be the robot doing

that for you. >> and then drones operating out of the line of sight. >> we have not talked about amazon nearly enough lately, other than about the nba rights. they are spending a huge amount of money to do so many different things in ai. idon't like claude as much as -- >> claude is not trained on the most current -- >> nvidia is doing well, and it's unlikely to pass that. it's no good is what i'm saying. >> tesla shares up another 2%. >> autonomous vehicle. >>there's an important shareholder vote on the reincorporation in texas, and there are two separate votes. in texas they need people to vote because they need to get 51% to vote in favor of the

outstanding shares. >> you get a g-- >> i was going to buy a share, and you are not allowed to buy a share just to see. >> i got a tour last year. it was cool. amazing. worth it. >> is your name montoya? >> my name is not montoya. >> one of the greatest movies ever. come on. >> rob reiner? great. >> if you have one takeaway -- >> a quick reminder, don't forget the next investing club at noon today, and meantime watching bonds back below on the ten-year, and claims ran hot, 219k, a little above expectations.

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take a look at s&p laggards. we talked about salesforce. hormel in there with a beat. sales miss. they raise the eps guide but they keep the sales guide intact. we've talked a lot about how spg companies under pressure from private label. >> i have them tonight i have to know what's going on. they're a protein company. that's very good for glp-1s. david, i'll bring you some pumpkin spam. you can have it tomorrow. you can drink it. >> i remember when you ate that on set. >> it was darn good. >> that was a moment. >> meantime, s&p hdi 52.olng25 don't go anywhere.

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jim, you've got your monthly investing club meeting today. >> very excited. spent a lot of time on best buy because i think that is the one that has the most opportunity of the companies that you follow, obviously, salesforce, foot locker is on target, but we have a new name we're going to be discussing dover. dover is at the heart, again, of the data center. you have to have data center in your portfolio in some way, shape, or form. even if it's solar. >> a few different ways to get there. >> yes, there is.

solar as important, wind not as much. natural gas, too, and no one wants to talk about that. >> that has to be used. >> and then nuclear, of course. >> making a comeback. they can put -- open three mile island again, that would be something again. i would love to run that tour. >> jim, we look forward to it, see you midday and later tonight with hormel on "mad." s&p down about 15, dow taking n'gonyert of the beating today. dot awhe. (♪♪) the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. because we believe the more ways we all have to move forward. the further we'll all go.

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good thursday morning. welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla, and david faber, live as always from post nine of the new york stock exchange. stocks, a mini selloff going on. the s&p is down a third of 1%. there's strength under the hood in places like real estate which is surging more than 1%. industrials, materials, staples,

consumer discretionary, energy, utilities and financials are green, but it's technology that's weighing on the major averages. salesforce is a big part of that story. you have been talking about that. it's down now 19.6%. servicenow, intuit, adobe and oracle at the bottom of the list. take a look at treasuries after we did get data this morning, and there was a bid before the gdp report and that extended, seeing yields lower, 4.56 on the 10-year. still elevated but two-year yield under 5%. here are three movers we're watching. got to start with salesforce because shares are plunging after its first sales miss since 2006. the company's forecast also falling short. we're going to break down the numbers with one of the street's top tech analysts later this hour and find out if it's a buying opportunity. lot of big retail movers including foot locker which is surging almost 30% now, posting better than expected comp store

sales as the company's turnaround plan begins to kick in. more on the retail trade ahead. shares of disney, nelson peltz selling his disney stake weeks after losing the proxy battle. stock up a little more than half a percent. >> busy morning in data between claims and gdp and pending homes. let's get to diana olick. good morning. >> good morning, carl. pending home sales dropped 7.7% in april compared with march. the street was looking for basically flat. sales down 7.4% year over year. this count is based on contracts signed during the month at that month's mortgage rates. the average on the 30-year fix ended march 6.9% and took off hitting 7.5% by the end of april with prices still climbing and supply very low, leading to increased competition, that jump in rates was a huge factor. sales are down in every region of the country but fell the hardest in the midwest and west, which is interesting because the

midwest has some of the most affordable markets and the west the most expensive. so mortgage rates eased up a little bit in may but are rising againnow. another report out from redfin said the share of sellers doing price cuts hit 6.4%, the highest level since 2022. the median asking price dropped for the first time in six months. guys, interesting dynamics going on with rates. >> yeah. i mean are the lack of activity, the negative sales that we're seeing, diana, is it going to have an impact on prices? or is this inventory issue still forcing prices higher? >> you would think so. that's how it usually works historically, but it hadn't been in the last year because of the supply issue. supply leanest on the lower end where demand is strongest. we are seeing more supply on the high end of the market and more activity on the high-end of the market. you might see prices easing up there because sellers don't have quite as much activity as on the

lower end. again, if you still have this lack of supply and lots of demand it's going to keep a floor under prices and with mortgage rates high too, that just, you know, keeps sales as we see. >> predixment for the fed. thank you very much >> got a lot of new information today. gdp, so it's the second look at the first quarter and it was revised lower. i remembered, carl, what you mentioned about david rosenberg and the bears saying the revisions are lower. gdp was down, so now it's up 1.3% instead of the first look was that it was going to be 1.6%. and if you go beneath the hood, consumer spend asking get revised lower. 2% growth in personal consumption. it was 2.5% prior. 2.2% consensus. so that is something to pay attention to, as we wonder whether the consumer is really slowing. now remember, the -- >> proves us right a little bit. >> proves us right. >> spent a lot of time talking about that. you mentioned so much of the --

of -- from the calls and the like. >> yeah. >> from so many of these companies in terms of what they were saying. >> it's natural that after years of inflation, the highest interest rates in more than 20 years, you would start to get some weakness in the consumer. the thing is the job market has been on fire, and there are signs that that's cooling as well. we're going to need to see more evidence of that. i just wanted to mngs you see the smaller gdp it was the smallest since 2022, remember -- >> q2 '22. >> economists aren't that worried it's recession. it was skewed by inventories and trade. i want to remind everyone of that because it's not like growth is falling apart. the q2, which is the current quarter we're in, the tracking number from the atlanta fed, is 3.5%. so things are going okay on the growth front, but we pay attention to the weaker consumer numbers and the only other number i would pull out of this because it was also very bond friendly the price deflator moving lower to 3% versus the

3.1% which was what is initially forecast and also initially reported. so david, always good to get an inflation number that comes in worse than expected, but it's still not at the 2% where the fed needs it to be. that's the thing. >> yeah. what does it all mean? >> patience. they have to wait more. they have to wait to see more evidence. i showed jobless claims a little elevate. >> i'm looking forward to a conversation today with john williams the new york fed president at the economic club of new york. we're going to be speaking around noon. market is going to be paying attention. he's always a voice of -- a big voice at the table and always gets a vote. this is really the last major fed speech before the blackout period begins where they can't speak next week ahead of the meeting on the 12th. so i'm interested to hear if he echos the kashkari, we need months of data to show that inflation is really coming down before we cut rates, or a more -- less hawkish view of we're getting there on inflation and we could be looking at

cutting. >> speak with new york fed president sfwhooims very exciting. >> i prefer sara than eisen, but i like that. >> faceber report. >> it's been around longer than you've been alive at this minute. >> we're getting commentary from the companies. i made -- i did a special for carl because you know the beige book i love, and in new york, they really went a little bit deep on the broadway situation that i needed to get carl's take on. >> oh. >> tourism is good in new york. broadway show attendance continued to improve while tickets for some shows were in high demand, less successful productions have seen low attendance and five broadway theaters remain out of us. >> there's been a high level of inventory of broadway shows, am i right? there's not that many people ready to go to the theater. so there's -- they're duking it out. >> we've had an enormous number of openings. >> that's my point. >> yeah. >> some of them better than others. the beige book message was

moderate expansion, moderate growth. if you're worried about recession or inflation, and you look at all the anecdotes in the beige book, it was like moderate price increases, companies having more trouble passing on higher prices, moderate employment growth. it jives with the soft landing that i think the fed and the bond market really want to see, and so today is a good day for all that. >> look at john walden of goldman today presenting. soft landing remains the base case. blackstone's coo yesterday, the fed is having some success here getting some more activity in cnbs. cre spreads tight pentagon ap lot of constructive commentary the equity market not with standing. >> i think, yeah, it comes down to the consumer and on the consumer, i think what -- the read is, based on today's data going through some of the commentary, it's that the consumer is not cracking, cruise is not crack.

still going strong but a little bit of a moderation. you see that from some of the commentary. a lot of retail earnings to go through. here's the cfo of american eagle, for instance. >> continued momentum similar to what we've been seeing, you know, pretty commensurate with the first quarter trend. we're very pleased with that coming into the second quarter. very pleased with the start of the year. a lot of business ahead of us. >> best buy. on the other hand, not as hot. if you look at what best buy ceo said. they've been in a tough category of electronic spending post-covid, but they say consumers continue to make it tough choices with their budgets, trading down in some areas, while still prioritizing spend in others like services and experiences, like travel. this in combination with the pull forward of tech purchases we did see in covid continues to be a giveback here for the likes of best buy.

has weighed on demand into the early parts of the year and pandemic and lower levels of material innovation led to continued lower demand for high ticket consumer electronics and a focus on value and deals. we're starting to see winners and losers as we have been. >> all along there's been a bifurcation as you've been doing the commentary which is great and informative throughout earnings season, but it's part of it you wonder, is it just execution, although frankly, best buy executing fairly well despite what are somewhat negative comments -- >> a good example of that is capri, which owns michael kors, which lad a weak quarter, versus tapestry which had a strong quarter and they're trying to buy them and here's what capri says. performance infourth quarter continued to be impacted by softening demand globally for fashion luxury. didn't hear that at ralph lauren. not like if you're in one category you're a winner. >> yeah. >> meantime, markets are under pressure once again. dow down 358. we talked about why. nasdaq coming off the worst day since the end of april and the

s&p on pace to break a five-week win streak. nasdaq still up 8% for the month. s&p up more than 4. just four tech stocks added more market value than the rest of the s&p put together. nvidia, microsoft, apple and alphabet have added 1.4 trillion this month, more than the 296 stocks put together. half the gain nvidia. let's talk about where the market goes, charles schwab investment strategist liz answer saunders with us. good to see you. >> hi, carl, nice to see you too. >> there was chatter when we crossed the 100th trading day of the year when you get to that level and up 10% year to date the year ends up being pretty good. is that a reliable thing to count on? >> i think none of those anecdotes are reliable on an every year basis. you can look at those trends at the index level but what's noticeable this year is what's going on under the surface. the case of the s&p 500 it's not as extreme, but no more than 5%

draw down at the index level. the average member has had a draw down of 14%. that average member draw down goes up to enough 35% in the case of the nasdaq. i think the real story of what's going on, is not necessarily being told at the index level because of that bias up the cap spectrum, fab four contribution and there's so much churn and rotation going on under the surface, thooingz teli think ths telling the more accurate story of the relationship between the market and macro uncertainties. >> right. the question for a lot of desks this week whether or not these draw downs are calling into question the fundamental case of, at or above trend gdp growth, positive eps growth, and a paused fed. are you seeing those things getting called into question? >> i think the sort of parlor game that's going on still with regard to the fed and when will the first cut be, how many cuts this year and that changes, of course, with every data point,

but more important to the equity market broadly, but also specific to, you know, factor leadership, whether it's small caps getting a lift or hurt disproportionately is yields. i think the bond market is really in the driver's seat for the equity market right now. there's a relationship between moves in yields and prospects for fed policy. those are connected. but it's that real direct inverse relationship between bond yields and equities with the inverse relationship being much stronger as you go down the cap spectrum because, obviously, there's greater interest rate sensitivity when you get into the smaller companies and that's, i think, really where the leadership has been defined, is based on what's happening in the bond market and for the equity market it's very specifically the 10-year yield. >> yeah. bonds and ai, that's the other biggy. we were looking at in fact year to date winners for the s&p, super micro, nvidia, giant names. >> utilities. >> more than 100%.

do you buy the ai theme as a leadership for the market and a way to reevaluate how you think about earnings and productivity and companies? >> yeah. i think it comes into play in what we think of as the growth trio of sectors, which house the magnificent seven. so technology, communication services, and consumer discretionary, but interestingly, although tech and communication services are still doing well, you've had that negative divergence in consumer discretionary in part because that's not really the ai play necessarily, especially a stock like tesla, which has been such a weak performer. i think ai is incredibly compelling as a driver of the economy, as a driver of productivity. i'm not sure you can quite quantify it yet in terms of things like productivity statistics, but certainly has represented a lot of power from an earnings perspective. in the case of utilities, there's been a lot of chatter

and stuff written about is that an odd thing happening in a market that at the index level anyway, is doing fairly well, that you've got this classically defensive area in this leadership position, but to your point, sara, i think the leadership of utilities has more to do with the sort of power story component of which is ai, more so than this traditional area of defense that investors are moving toward. >> yeah. t the rewriting of utilities is one of the more interesting stories of the year. liz ann sonders. good to see you. >> communication services, technology and utilities, three best performers year to date. as we head to break our road map for the rest of the hour. salesforce shares are slumping down double digits on its first sales miss in almost two decades. we're going to discuss what's ahead for the stock with one analyst sticking with hit buy call. >> retail roller coaster. earnings movers rallying double digits, others plunging.

the names to watch. >> fueling the ai boom, duke energy ceo is going join us to discuss new power deals with amazon, google and microsoft. big show ahead for you. don't go anywhere. [ inner monologue ] i needed some help. good thing i knew someone... ♪ ♪ or... some-thing. [ a.i. copilot ] glad you called, j. [ a.i. copilot ] it's time for an upgrade. awesome. ♪ ♪ [ inner monologue ] i knew what i had to do. because they never stop. no time to waste. this isn't sci-fi. this is precision ai. ♪ ♪

you can see the incredible growth this quarter is amazing. i mean these are cash flow numbers that we've just never seen before, up 39% year over year to $6.247 billion in cash

flow. incredible. >> that was salesforce chairman and ceo marc benioff a guest on "mad money." sounding very bullish, despite shares that are plunging down some 20% on what was weak profit guidance. obviously, not cash flow which was strong. it was the company's first revenue miss since 2006. jefferies tech sector leader has a buy rating, $360 price target on the stock and joins us now. so what happened here? >> david, it's a mixture of q1 macro in europe and the u.s. and then i think there's an element of ai investigation. companies only have so much money to spend in technology. everyone is being guided to this pit stop trading called ai. they're getting distracted trying to figure out what they're doing. i think there's a lot of no decisions that are being made. we saw this with workday. we hosted workday at our software conference here in

southern california yesterday. continued to cite everything marc is saying. we have a consistent pattern. the back office and hr financials is soft. the front office and salesforce and marketing is soft. europe in parts of the u.s. and then i think you have this ai investigation going on that is cause something pockets of weakness as companies are trying to figure out where they go in this ai journey. >> yeah. we made that very point at the top over 9:00 hour. jim, carl and i talking about that. i like the way you say ai investigation. do we have a sense where they're going to end up? is the decision going to be made we need to be spending more money over here and hence less with a salesforce or perhaps other enterprise software companies? >> i think that's what's happening. i think what's happened since the pandemic you have all the ceos that were like, this is the new normal, we pulled together this transformation and we're in a giant hangover still. we're digesting all the software. the analogy when you back up your suburban and go to costco,

you don't go back the next day. you die gust frg you brought in your house. we're in the digestion phase in software where we're still digesting these applications and trying to extract the next value of the systems. so i think that ultimately there's still demand, there's a good market, maybe the market is not growing quite as fast as everyone was predicting. we talked about this with adobe. they talk about a 13% plus growth market, they're growing 10. salesforce growing under their forecast. workday under their forecast. there's a consistent pattern across the software industry, and then there's an exciting chill going on, which is everything in ai infrastructure, nvidia, cooling, power, data center, i mean it's -- those stocks are all 80 to 100% because there's an s curve. no s curve in software right now. >> seems to be a theme we have to continue to sort of keep an eye on. for salesforce itself, i mean wasn't that long ago you had a lot of activists pressuring the

company. marc was talking about the very strong cash flow. have they met sort of, you know, on the margin front i'm curious to get a report card in terms of what they've been able to accomplish? this is more of a demand side of the equation as opposed to, i would assume, the margin side? >> yeah. they've done a nice job on the margin and still have a long way to go. we've said they're the most out of shape large software name we cover. when you have margins in the low 30s and your peers are high 30s and 40s, adobe and oracle in the 40s. if you think 30 to 40 plus, they're not at cruise altitude. they started to level off. one of their sales thesis on salesforce as the environment opens marc likes to spend. always ban growth ceo not a margin ceo. does that change his appetite to do more m&a, change his view on the margins trajectory? i think, you know, the bears, obviously, are winning today on that thesis. >> yeah. well they're winning overall. ai investigation, we're going to continue to investigate that as

well. thank you. >> thank you. by the way, the dow is down almost 400 points. but salesforce is shaving 346 points off the dow. >> such a great index really. worked so well. >> statistically relevant dow according to david is lower so is the s&p 500 and nasdaq. down 0.4%. because tech is lagging and it's not just salesforce. weakness in servicenow, adobe, or r oracle microsoft as well. one winner hp top of the market today in the tech space, up 12.5% off earnings. we'll talk more about what the signals are from earnings, the rk a t stwmaetndheofare story when we come right back. . custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley

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all it takes is an idea, and now becomes the future where you grew a dream into a reality. the all new godaddy airo. put your business online in minutes with the power of ai. dow falling nearly 400 points this morning. the nasdaq and s&p under pressure. mike santoli here at post nine. we were grousing about price weighted indexs. >> yeah. i mean the dow is distorted as you were saying by the salesforce move. it's a hot priced stock down a lot. that said, enterprise software in general is weighing on the s&p as well. microsoft in particular is a little conspicuous, down a

couple percent. ran right into a barrier at the old highs from march. that said, if you look elsewhere, it's the strongest day of the week in the market because yields have relaxed lower after that somewhat softer than expected gdp revision and some of the read through on the price indexes, and what that has done is allowed breadth to re-exam re- re-exam panned. retreat to the higher ground of those companies you have the highest conviction in the growth or whatever and that's been an nvidia story. nvidia again, this intraday move, the stampede of call option buying every single day, the dollar volume in the stock is just phenomenally above anything else in the market. and it almost just was the dog on a given day. but again, today is better betd for a reprieve for what has been an atrociously poor breadth market in the last couple days.

we're clenching up ahead of the pce inflation number and that's been the dynamic now. >> i know gdp is backward looking, but most of the revision was a decline in goods spending, durable goods. >> yeah. i mean this is a quota that ended two months ago and you can take heart in the fact that maybe the companies were seeing what broad economy was telling us, that there was a cooling off. i don't think it's alarming levels. to me, it's much more about earnings are holding up. that's the support. that's not the catalyst to go higher from here. you're 21 times earnings again at the highs. you haven't spent a lot of time above 21 times forward earnings in the s&p 500 except for the pandemic and the tech bubble. you have to have an excuse to try to pay more than that. now the average stock is a lot cheaper than that and people keep saying that. it is true. but i do think that's why you have this churn at these levels trying to figure out what can work. lower bond yields would refresh the big. >> there's also the ai

investigation. microsoft, adobe and amazon, oracle, some of these names, salesforce. >> yeah. >> sometimes they get cred for being ai stories an hurt for software stories which is the story today. >> what the market has been telling you for a while is what it really sees clearly is the infrastructure build-out in terms of ai capacity and even in industrial capacity. production. it's not interested in the consumption side. it's not interested in the old favorite which was annual subscriptions and software model is sticky and you have to pay a high multiple for that. disruption creates disruptive companies and that's i think what market is trying to reckon with. >> i'm curious do we have any statistics on how many days have been nvidia, is the market days, versus actual market days? >> it's been -- it's certainly been several this month i would argue. nvidia with the fellow travelers of broadcom and dell and super micron on a given day. as carl was mentioned, massive divergence to the s&p and dow, a

lot has to do with nvidia. nvidia is responsible for more than a third of the market cap that's been gained by the s&p this year. and nvidia is not in the dow. >> that's a good stat. >> and so that seems to be -- >> yes, exactly. >> not yet. until 10 for 1 split takes effect and panic and they feel like they have to have -- it's also, by the way, the second weather in the s&p ahead of apple because of the float adjustment to apple. >> it's also the end of the month tomorrow, right? >> it is the end of the month tomorrow and i don't know how that plays, except, you know, one thing the s&p has been flirting with this 5250 level, the march high as i was saying earlier and also last week's low, so it seems like below that, the mechanics of the market start to get a little more maybe a little bit more volatile, twitchy. >> mike santoli. 15 retail names have reported in the last 24 hours. we're going to get you some of the key headlines along with top picks from one analyst who says

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welcome back. i'm seema moody with your news update. the jury back for their second day of deliberations this morning in donald trump's hush money trial. the judge is reading a large part of his instructions this morning as they deliberate on the 34 counts trump faces for falsifying business records. meanwhile the jury asked the judge today for headphones to use with the evidence laptop. papua, new guinea ruled out finding survivors under the rubble of a massive landslide. the number of people killed is unknown with a wide range of estimates of 670 to 2,000. part of a mountain collapsed last friday burying people under almost two stories of debris and mud. one of john legend's guitar with his ties withthe beatles sold for 2.9 million at auction

that makes it one of the most valuable pieces of memorabilia. the guitar was believed to be lost for over 50 years until discovered in someone's attic in england. it was used in the recording of the album's "help and rubber sole." >> thank you. retail has been a key today, of course. we've gotten earnings from best buy, birkenstock, burlington, foot locker, kohl's, to name a few. to dom chu who has the key movers this morning. >> david, we're going to try to rapid fire through this because like you said it's a lot. we'll start with foot locker which is soaring after the company reported better than expected earnings, the sportswear and athletic footwear giant citing guidance on its turnaround plan in the upcoming summer and back-to-school shopping seasons. birkin stock trading higher to start the day. the sandal maker topped expectations and raised its revenue forecast as it sees strong demand from consumers and whole sail partners as well.

stocks up 9.5%. one outlier to the downside kohl's, delivered a surprised quarterly loss due to weaker demand for apparel and footwear. kohl's lowering its annual forecast those shares down 25%. burlington stores is next. that stock higher after beating estimates along slightly better than expected same-store sales numbers. those shares up nearly 19%. dollar general has been moving between gains and losses as investors digest a mixed result. the retailer gave disappointing earnings guidance for its quarter, though, it follows a solid beat last quarter. the company also reaffirmed its full-year guidance on balance. those shares down 4%. and we'll end on best buy higher by nearly 10% following earnings beat and upbeat guidance outweighing a slight miss on revenues for the retailer which said macro factors created a challenging sales environment. i'll send things back to you. >> and some huge swings in those stocks, dom. thank you very much.

our next guest has a buy rating on best buy, $90 price target. joining is is michael baker, research analyst. before we get there, michael, what a picture. kohl's is down 25%, foot locker up 28%. what are we gleaning about the consumer right now? >> two things i would say. one, to us, the consumer sales and spending is slowing. best buy, the stock is up, but as dom said, they did miss sales and just some of the monthly retail sales numbers we get, we are seeing a slowdown year over year of growth in retail sales has been about 3% year to date. that's below the prepandemic average usually in the low 4s. lot of moving parts between the late tax refunds, early easter, weather. but generally speaking we are seeing a slow down in consumer spending. what it tells us about the stock, it's a stock picker's market. those moves are variable and, you know, a lot up, lot down. even this morning as i look at my list here, four companies

miss on sales, three companies beat on sales. it's really sort of all over the place. >> and dave and i were talking about execution. it really comes down to who is understanding their consumer right now. we saw that with abercrombie in a big way. so how do you pick the winners? >> yeah. you know, it's a great point. a lot of it is execution. best buy today, again, missed on sales, but they beat on margins. gross margin, much better. th that's excuse. starting to advertise and promote more leading to a better sales trend in may versus where they ended the quarter. with that increased promotional activity, they were able to say that they are going to be at the high end of the profit guidance for the year. that's all about execution. so in a lot of ways you're betting on the management teams if you figure out how to manage through this environment. another name yesterday dick's sporting goods really strong execution, one of our top ideas,

and we're seeing them navigate the tricky environment taking market share and growing the margins. >> there's going to be more. costco, lululemon after the bell. where is the opportunity given some of the size of the moves? which one would you bet on? >> a name we like is ulta actually. we see it as a best in class retailer. we have a term we use at d.a. davidson called best in breed and it's our top long-term ideas and we would put ulta there. the stockunder performed there. it is now the cheapest name in our space on a p/e basis except for best buy which always trades at a discount. the multiple is compressed. we think that's an opportunity. we get that they've lost a little bit of market share this year to sephora, but we think that's well known in valuation. in fact, we think sephora headwind levels off now. sephora built a lot of stores in kohl's over the past year and starting to cycle against that and think those market share losses even out and name trading

14 times below its historical averages. >> we'll check in with you after the report pounding the table on ulta there. michael baker, from d.a. davidson. stay with the consumer theme. when it comes to autos are you spending more on your car payments? you are not alone. phil lebeau is here with some new surprising numbers and you've been tracking this, phil, getting worse? >> it actually has slightly -- when i say slightly, like $2 better in terms of monthly payment improved. it's not getting any better. substantially better. but the numbers from experian i love these numbers because this is what we are seeing when people are going out and they're financing a new auto loan. experian says in the first quarter generally speaking the average amount just over 40,000 was financed just over 67 months in terms of how long you would take the pay back the loan and average monthly payment when i say, sara, better, it was $738 a year ago. $3 less per month.

but we are seeing the pace of sales, we're going to be at the best year since 2019. that's good news. having said that, look at the average number of people who are paying more than $1,000 a month for an auto loan. 16.1%. that is stunning in my opinion. 16.3%. a little bit better than last year, but this is a reflection not only of pricing on weeks veh versus -- vehicles, but the cost of financing. even with a new car loan rate and the average i think was 7.3%, that's the average. i mean, it's just -- this is the -- what you pay now if you are buying a new vehicle. it hasn't hurt the auto dealers. look at these stocks over the last -- since the beginning of 2019. >> pretty strong. >> the business to be in. >> strong numbers given that incredible increase in monthly payments. not to mention by the way all the other costs we talk about including auto insurance. >> you put that all together,

what you are paying every month for your vehicle, is -- it's well over 1200, $1300. i don't know what the exact average is, but you bring up a great point. auto insurance is through the roof. especially on a newer model. and if you're paying over $1,000 a month on your loan, you're buying a high-end, very expensive vehicle, your rate is going to be even higher for insurance. i mean, it is a reflection of the times we're in. >> why we seeing head lines like car maker dangle discounts as inventory swells? >> because what you're seeing right now is they have built so many on the higher end that increasingly where people want vehicles right now is that lower end, mass price, you know, 45 and under, and the automakers are getting there because of the greater supply of chips but not moving fast enough in the opinion of many people. when i talk with dealers they say the same thing, the days of people coming in and saying i'll take the higher trim level,

that's gone. i think people increasingly are saying, i want this vehicle, can i get the mid trim, not too many people buy base models, but they want that lower priced trim. >> i was thinking about the tech the other day you mentioned with david elliott and carmakers and getting those analogs into lower price models. >> yeah. what was the inventory glut is no longer the case, but yeah. >> it's certain brands and models. jeep, i mean, the journal had a great article about the dealers complaining about the inventory of jeep models that are on the lot right now. this ebbs and flows. some brands they keep pumping out and not going to bring down the discounts until they're forced to. >> phil, thank you. >> good to be here. >> always good to see you here. >> good to be here. >> great. let's switch gears for a moment, although stay in auto land really, a little bit, tesla ceo elon musk has agreed to testify in the sec probe over disclosures related to his $44 billion takeover of twitter. musk had refused to attend an

interview in september and said the sec then was trying to harass him. but apparently he has agreed. of course he did end up buying it after a long back and forth that i very much enjoyed reporting on during that period of time. >> what are they looking into here? what is the concern? do we know? >> i'm not really sure exactly what their problem is at this point. i mean, you can go back, of course, to when he said he was going to buy it and then didn't. i mean this goes way back from when he, remember, the original -- originally when he said he was going to take it private many, many years ago that got him into trouble with the sec. >> take tesla private. >> yes. that was tesla. at 420. thank you. but as for twitter, yeah, i don't even know. i don't even know, sara. i've ignored the story. the focus on morgan stanley and the 14 or so billion dollars, along with other banks, that they lent to him to help finance that transaction, which they

have been unable to really move certainly at any level they would like to move it at. >> meantime, after the break, fueling the ai boom, amazon, google, microsoft, striking a new deal with duke energy to supply their rapidly growing data centers with some clean power. duke's ceo will join us to mpy d veorin that means for her coananinsts a moment. encore energy, america's clean energy company, now in production in south texas. energizing america with reliable and affordable uranium for nuclear energy fuel from our environmentally friendly extraction process. >> at university of encore energy.

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welcome back to "squawk on the street." utilities the best performing sector over the last three months. we've been talking about this on the show. goldman sachs out with a new bullish call this morning saying the gains can continue arguing utilities offer ai and defensive exposure at, quote, undemanding valuations and that in the long-term ai related power demand could lead to big eps growth for the sector. cannacord out with a new saying, quote, we are set to hit energy bottle necks as it relates to ai

deployment, data center build-outs and gpu consumption have to slow or the resources that has to power them has to accelerate in a big way. it's been a big theme. utilities all of a sudden the new sexy story in town. who would have thought? >> utes. >> utes as they say. >> these new notes come as duke energy announces some deals with amazon, google and microsoft to supply clean energy in response to growing demand for data centers. duke energy chair and ceo lynn good joins us. great to have you. i don't need to tell you, the street is obsessed with this notion of securing long-term energy security, and i guess in this set of memorandum of understanding, the lower rate structure, you talk about the construction and what it means? >> sure. you know, this is a period of growth and the comments that you had leading into this we're seeing growth everywhere. artificial intelligence data centers being part of it, but at

duke, we have a more diversified growth story with chip manufacturers, battery manufacturers, pharma companies. it's a moment when the industry is really growing, and you're beginning to reflect that in the story about the utility industry. so as we face this growth and have an opportunity to work with customers like amazon and microsoft, google, newport, an existing customers, all of them existing customers at duke, we begin talking about partnership. how can we not only power this growth but also help these companies achooe their clean energy transition in a way that is affordable and competitive. it we work together. so, i think it's an extraordinary opportunity where innovation and growth are meeting and we're excited to have an opportunity to find ways to accomplish their objectives and, frankly, duke's objective to continue building clean energy. >> can you give viewers a sense of how much of the load is data center and where that number is going to end up in five years? >> so, today the load is about

2% of what duke energy supplies. and we see a doubling by 2028 and probably doubling again by 2030. as i look at the growth that we see between now and 2028, it represents 25% of our growth. those other items, chipmakers, battery manufacturers, the onshoring of u.s. manufacturing, is also contributing to our growth. so, it's important, it's growing, it's beyond what we've seen in decades, carl. but it represents a piece of what is already a growing list of industrial and, frankly, population growth is also spurring growth at duke. >> how much are these tech companies investing to develop this power? it reminds me of the deal we saw from microsoft, which is investing $10 billion with brookfield to develop renewable alternatives for powering data centers. do you have a sense of just how much money we're talking about? >> i think we're early in the process. you should think of this as a framework for customized solutions for those customers

coming to our area. and it can take a variety of forms. it could be direct investment. it could be innovative financing opportunities. so, the specifics will be ironed out in the weeks and months ahead. i think what this demonstrates, though, is the willingness of partnership between duke energy and these customers to find a way to fuel the growth, but also lower the cost of clean energy technologies over time. >> so, it's david. you say you're working together. i assume you have plans, then, to meet? obviously, this is just an exploration. you've made that clear. it doesn't necessarily mean you're going to get to some sort of conclusion of some big answer. >> david, we've been working for a long period of time. as i said a moment ago, existing customers at duke, we've had a relationship for a period of time. so, our hope is that this accelerates with some specifics that we can put a framework around in 2024 and then begin moving more quickly to get

infrastructure built assets on the ground so customers can continue the growth they're keen to achieve. >> well, you know, lynn, back to the bigger question. how worried are you -- i saw a recent report from the electrical reliability council of texas that said over the next several years, due to the potential demand of data centers, they think there could be a looming grid disaster in texas. i'm curious what you think in terms of the regions you serve. >> our job is to keep reliable, affordable power flowing. not only to these customers but existing customers. david, we have a very disciplined approach in all the markets in which duke operates in which we are putting resource plans, working with stakeholders to find a way to keep the growth powered in a way our customers expect. so, that is an everyday job. frankly, accelerating everyday job because of the scale of the growth that we're seeing at this point. so you should think of it as something that's a high priority, not only at duke among

our customers but also, frankly, in our states. >> and the country as a whole. no one wants to be behind the eight ball on this one, lynn. we hope you'll come back often and give us some progress reports. thanks much. >> thank you. pleasure to be here. >> we have massive run for dell shares as investments get bullish on the company's a.i. exposure. with that said, some are calling it an a.i. faker. let's get over to kristina partsinevelos with more on what that exactly means. >> that's a good catch line, a.i. faker. can you believe dell share prices just soared even passing nvidia over the last 12 months. the stock has jumped over 200 bucks since last week on optimism around its potential to capitalize on the a.i. boom through its server business, which had a near doubling of backlog orders just last quarter. but as you alluded to, david, is dell a much less levered story to a.i. as bernstein writes or an a.i. faker as one mizuho

calls it? i want to look at the stock drivers. you can see that spike in may. call it the mitas touch of nvidia, pixie dust, as it was called. nvidia chips need to plug into servers which could boost dell's server relationship. microsoft a.i. pc announcement last monday with qualcomm helped the pc refresh cycle sound more convincing as an earnings boost. so many companies are pushing that. the a.i. . c will be the next big thing. dell's core business, roughly 60%, remains heavily reliant on pc and monitors, which means the a.i. boom may not be as beneficial as thought. if we look at nvidia's groets margins, they hit 78% last quarter, a week ago. that means it's costly for dell and could be more dilutive to dell's gross margins. there are cautions going into the earnings. you can see the selloff today, but for our retail investors,

anyone listening right now, you want to look for a backlog on orders right now and an increase to its full-year guidance for the stock to continue rising on that a.i. optimism. guys? >> doesn't it end up up always being about nvidia? feels like it. down 1% today. >> exactly. let's blame nvidia for any losses in the market and nothing to do with inflation or anything like that. but just one point, if we're going to talk about a.i. pcs, hp is a good example. their stock is up today. for the first time an increase in pc sales in the last two years. that's pretty strong. and the ceo did say a.i. pcs would be about 10% of sales in the second half of this year. so, that's still not a major boost, but they do see more of that coming in 2025, 2026. something to keep in mind for dell's earnings tonight. >> yeah. looking forward to those earnings, as you point out pcs and the all-important servers. thank you. >> thanks. >> don't miss, by the way, the

ceo of novartis will be here with us tomorrow. want to check in with vas as well. as for our broader market, the s&p down 0.50%. we talked about the losses in the dow, which should be largely ignored. obviously, they are due almost solely to shares of salesforce, which as you might expect, the next hour we'll cover very closely and, of course, the broader market as well after this.

>> at university of maryland global campus, getting a bachelor's degree doesn't have to mean starting from scratch. here you can earn up to 90 undergraduate credits for relevant experience. what will your next success be?

good thursday morning. welcome to "money movers." i'm carl quintanilla. leslie picker is in at post 9 of the new york stock exchange. today barclays head of u.s. equities strategy with the s&p hovering around the firm's year-end target. when actions speak louder than words. polls may be showing americans are downbeat on the economy but their spending habits suggest otherwise. we break down what consumers are saying versus what they're doing. then the ceo on okta with results. a tough day for software