once we got the pce number it did give a little bit of relief to the stock market, at least. you'll see dow futures up by 105 points s&p futures up by about 18 nasdaq is up by 51 treasurys got a little weaker, the lowest we've seen in a few days that does it for us today. have a great weekend we will see you back here on monday right now it's time for "squawk on the street. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are steady as core pce comes in somewhat friendly, the softest annual gain in about three years. ten years, almost back to 4 1/2 as we head into a fed blackout we begin with the fed's favored inflation gauge. tech and ai also in focus, dell

has been a red hot stock, down double digits, though, this morning. margins perhaps being one reason, even though it did exceed analysts' estimates shareholders are recommending to reject elon musk's passive pay package. let's again with reaction to the pce data a lot of chatter about 0.249%, and what rounding down means. >> we're back in terms of the sense that we had this period where we thought things had popped and gotten tougher, and some conference calls, we thought we were trending down, i think we can go back to the we're okay david, you know this number, which of course we always have to say it's a preferred gauge, does signal that maybe the trajectory, this slow unwind of inflation is still happening

>> good, i'm glad. i don't have anything to offer what can i possibly offer that would be insightful? >> that's a great way to start a show imagine if you started a football game and tony romo said, you know -- >> i've got lots this morning. >> you have lions gate studios. >> we've got dell to talk about, mongodb to talk about. we've got activism to talk about. >> but i'm just saying that the backdrop to what we're talking about got incrementally better that's all i was really saying i didn't mean it to be an attack >> i wasn't attacking. >> three-month annualized goes to 3 1/2, lower than the last couple of months still higher than the back half of last year. >> we've got to get back to -- look, if you're one of those people who says rate cut this year, you've got to get back to

where we were when jay was really happy with things when say said over and over again, three months, i could argue this is month one. we've got to start the clock again. they are in no hurry i still think kashkari did express what is on many people's minds on wall street, listen, it didn't hurt our economy. this is my view, until we see 4.1%, 4.2% unemployment, go about your business. >> i know we always cite him, but he did look at claims and says next friday, probably going to be sub 4 for a record-setting 28 months in a row. >> the only one on wall street is not celebrate the greatest streak in our country's history, it's really incredible i'm not ever comfortable

discussing politics, but if you didn't have an election year, i think you would say europe, they're doing terribly and talking about cutting. we have an economy -- we'll see if david bites on this david, we have an economy that creates jobs that the founding fathers would have said, you know what, we got this right. >> that's true. >> hamilton, jefferson. >> they might have agreed on that and they didn't agree on much. >> i wanted to see if you saw the play. >> i also recently finished the biography on jefferson. >> what did you think of that? too journalistic >> it wasn't as strong as i had hoped. i preferred grant, for example >> grant was a genius. >> truman. didn't do it for me as much. still interesting. >> who invented university of chicago, who created it? >> university of chicago, i don't know who? >> rockefeller

>> okay. >> you told me to read the book. >> that was one of the great books. >> you couldn't have read it or you would remember >> i forget everything, you remember everything. every day is new for me. >> i worked in o'hara the other night. i have gone off the deep end. >> you're like the dennis miller of financial journalism. >> that's why i took dennis miller's 6:00 p.m. slot. >> dennis miller was a cnbc employee at one point. >> so was john mcenroe who knew >> this ties us to dell, the strong demand for ai servers, the company expects the gross margin rate to decline in the current fiscal year, citing inflation, the competitive

market they're down 16% >> going back and forth, ben is saying, look, you have to take it higher because this was the beginning of the big server move what happened is the ai server backlog was $3.8 billion there was a whisper of $4 billion. by the way, the stock was down 40 at one point. i'm on the bandwagon ever since apple -- >> you let him have it last night. >> i have a dog named tony, and i haven't found another stock like the great one, nvidia he literally just said -- he goes, it just looked like year-over-year the business storage was perfectly flat ai servers went from zero. servers were flat. that's like saying beer is flat.

even free beer that's flat, you will not drink he crushed this. >> he asked the key question, which is you're making all these great ai servers, but are you making any money on them and you've got any number of investors this morning trying to understand that. it's funny, because then it immediately brought me back to a conversation i had with a tech investor a couple of months ago who brought up that idea when they sort of looked into the components and everything else and what was in there, and they said it's unclear to them whether there's any margin in this yet that said, i have another data point to share. again, i haven't tracked it all the way down, but there's a question as to whether there was a huge order from a very big customer in this case, i'm told the musk companies. >> this is just good insight. >> not just tesla, but spacex and xai, all of these servers they need to order.

>> oh, my. >> and if you're dell, don't you discount maybe, because you know this is going to be a great customer for a long period of time at least, i'll throw that in the mix as a possibility. >> can you go a step further and talk to us -- some people are saying because of the vote upcoming on tesla, this stuff might have at one point gone to tesla. >> it was interesting the way it was termed to me is musk companies, one of them is public, and the other are private. the musk companies that are private can do whatever they want in terms of buying all of the servers they need. but maybe you do get a benefit of buying as many as possible and there are discounts that are available. anyhow, the key point for dell, does it mean that they were more aggressive on price for the key customer, that's not going to be the case there was an answer to the question as well. >> the only thing, the next

question was asked in the cadence of the conference call, really basically saying, right now, not yet, but coming to fruition but your information about musk changes, in my mind, a whole lot of what i thought was going on, which was that in the end this is a business that is not a good business now i don't feel that way. >> listen, again, that's in process. but i do share it because it is something at least that's been brought to my attention. here is the answer, which obviously jim mentioned the key question, from the cfo, saying when they look into q2 and next year's fiscal year '25, we expect isg operating income rates to improve as we talked about. they go on to say, 11% to 14%, so what we saw -- i think what we saw in the first quarter was multifaceted, but we do continue to expect recovery

all of this leads us to, what do you do with the stock? >> you buy it. you have to get started somewhere. i think michael dell is going to be the conduit i think this might be the only one you had to play hardball with to get, because musk has been the outlier, because he's not a hyper scaler, not a titan. carl, the way this thing is shaking out is that there are the hyper-scalers that are playing ball with whatever jensen wants and then there are companies that seem to need an intermediary i mean, dell could be buying that just to be saying, i'm a musk guy, i can do anything. >> there's going to be a lot more servers sold from now until whenever, so if you can have a key customer be loyal, yeah, maybe it's worth getting the business. >> maybe everyone knew that, but thank you very much. >> you're welcome. >> meantime, we're still very

much in a hardware age because yesterday was the worst day for software versus the qqqs in a decade. >> i'm calling everyone, mongodb, this is one of these, yes, a database, enterprise software company in paragraph two, he goes -- this was amazing, consumption growth below our expectations. next paragraph, acquired workloads, started to slow down. then the third one, operation, we got off to a slow start now, this is formerly one of the hottest stocks in the universe, david. and this has been -- this has been enterprise software right here, mongodb. you couldn't get hotter than mongodb. >> what's happening? is it part of what we were discussing yesterday >> the same thing as benioff things slowed down. >> they called it an ai

investigation, and he's the analyst we have on a lot -- >> i like brent. >> -- that companies are investigating other opportunities in ai and what they can mean for their business, and so they are either spending there or at least slowing some of their spending in other areas while they investigate. >> david, this is not supposed to be a cyclical business. you're supposed to be spending they didn't. >> to your point yesterday, if your seat count is changing, your subscription model changes. for every one there's sentinel and z-scaler >> i tend to use jackson, he's the guy, the key he knows it better than anyone he happens to be from kentucky right next to cincinnati. >> it's always good to get a geographic read on things. >> absolutely. i do think that these are

cyclical companies all of a sudden i can't believe it these were the great secular growers. >> remarkable. we see sentinel with losses. let's touch on the historic verdict, the former president trump found guilty on all counts in his hush money trial. let's get to megan with the latest good morning. >> it was a unanimous verdict after less than ten hours of deliberation, with the jury finding trump guilty on all charges related to falsifying business records to conceal a crime. trump is awaiting his sentencing set for july 11th. he faces a maximum sentence of up to four years in prison, but he could face a lesser combination of probation and fines. this makes trump the first former president to be found guilty of a crime in u.s. history. when he spoke outside the courthouse, he signalled this verdict would not slow his campaign for the presidency. >> this was a rigged,

disgraceful trial. the real verdict is going to be november 5th by the people, and they know what happened here and everybody knows what happened here >> trump's campaign immediately started fundraising off the news, sending its first email for donations within minutes after the verdict. the former president also spent last night at a fundraising event in new york. biden's campaign posted a similar push for donations on x, saying the only way to keep trump from the white house is at the ballot box in november now, carl, this really kicks off a new and louder phase for the presidential campaigns both candidates are holding major fundraisers next week in silicon valley, both are seeing supporters from tech we expect trump to be campaigning in earnest now that he's no longer spending his weekdays in court. he'll hold a press conference later this morning. >> we'll see what he says, megan, thank you >> it's down to the djt, down 4%

when the verdict came out, up now 3% that's the stock that indicates money coming in, and it's quite impressive the way it reversed. >> yeah, we watched that happen just this morning. when we come back, another setback for tesla in the push to get elon musk's pay package approved by sharolrs 'lwah gap, ulta, costco. the future is pretty steady here ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ [thunder rumbles] ♪ ♪

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another proxy advisory, this time what is widely considered the most influential, urging tesla shareholders to vote against elon musk's -- what is it, $44 billion or so worth of pay package. institutional services saying such compensation would be in their opinion excessive. earlier this week another of these proxy advisory firms recommended a no vote on musk's pay. tesla's annual shareholder meeting takes place june 13th. things are starting to heat up

one important point, they actually did endorse the move to reincorporate in texas, and that's not unimportant, because remember, we've made the point many times, when it comes to that vote, you need 50.1% of the outstanding shares to be voted so when you have one of these proxy advisory firms saying that, maybe the big index firms, the vanguards and the like, will actually vote in favor of reincorporation. that would be helpful. tesla has obviously already tried to galvanize the retail base to vote as well we talked about you get a tour factory or get put in a draw to get a tour if you vote your shares in 2018, iss voted against the comp plan then, so there was not really an expectation they would reverse their opinion, although as we pointed out many times, when you go back to '18 and you

see how much shareholder value was created, they might have taken a second look. they say the original concerns regarding the magnitude and potential dilution, and inability to increase musk's focus on tesla are unaltered, and say there are go-forward concerns surrounding the lack of clarity of the board's consideration of alternative, less costly pay structures, including a lack of any disclosure regarding the future pay structure for elon musk. guys, this battle is just beginning, really. institutions, they tend not to focus until the very end so next week i know the directors, including the chair, will be making the rounds with many investors, talking about why they believe this is in the best interest of tesla to re-award this compensation, which of course was struck down. >> this is like buyer's remorse. i paid too much for a house once, and i came to the table six months later and said this

is ridiculous. they said, you agreed to it. why is this any different? i don't get it >> i'm not ur sure it is, you're right, 73% of shareholders approved this. and that is with iss in 2018 telling its constituencies we think you should vote against. those are larger now back in '18 this was not an s&p 500 company, so you do have index funds that own a larger percentage for obvious reasons of the stock they're going to play a bit more here you're right, they approved it, but they're trying to make sure -- this way they avoid anything with delaware this he reincorporate in texas what they would do should it not be approved by shareholders remains unclear. >> i think it's ridiculous an agreement is an agreement if the stock had gone up further

and hasn't been down like this, the data sales were bad last night -- i mean, give me a break. >> if the stock had done nothing or gone up a bit and this was a $500 million pay package, nobody would care they would be, like, sure, whatever it's only because of the outsized rewards for him and shareholders that everybody is focused on. >> why don't they go over the media pay packages >> we have to go we'll get cramer's mad dash countdown to the opening bell. the pre-market, friendly pce number suppoinrtg equities a little bit back in a moment where excellence, comfort, and electricity... are forever in bloom. welcome to beyond. the mercedes-maybach eqs suv.

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take a look at some s&p gainers to start the morning ulta beauty up almost 10%, even though they did trim the full year guide a touch we'll get into the retail names. you can catch us any time and anywhere just listen to and follow the "squawk on the street" opening bell podcast

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the opening bell is brought to you by nuveen, a leader in income alternatives and responsible investing. let's get to a mad dash. a minute and a half before we start the trading session. last one of the week, if you're keeping track, it is friday. happy friday. >> i have it i have the piece which tells you where we are in ai, no more

nonsense so i want you to guess -- no, i've been doing too many jeopardy questions you can't spell paint without a-i. sherwin-williams is the ai winner in the paint department because they have an ai-enabled color expert app, compared to other mobile apps, it looks like it's the best one. this is research >> this is research. color visualization, color matching and pairing think of all the things you could do. >> you have the musk story and you have this. >> think of the things you can do with ai when it comes to paint. >> if i can get the vision pro in this story, which i can't, because right now i'm the only one who is fooling with the vision pro but, david, this is interesting, because i thought we had peaked in terms of ai still climbing [ cheers and applause

>> let's get the opening bell here the big board, it's the jeep brand celebrating its all new electric model we're going to be talking with the ceo outside the exchange in the next hour. the nasdaq, it is microsoft celebrating his collaboration with the nasdaq on new ai-powered capabilities. [ bell ringing ] >> 40% of these ai pcs, best buy one of the best right now, and i have to tell you that i think i want to be first. >> did you say best buy 90 on your call yesterday? >> yes, i think a lot of people want to be able to have a salesperson explain to me battery life, which is better, and you need best buy. i don't think you can figure this out yourself. >> you want to listen to what

corey told you here is a shot from "mad money" last night. >> we're going to have 40 different skus at launch, and 40% will be exclusive to best buy, the largest in a retail channel, and our ability will be, we don't care which one you like the best, we just want to help you find the one that solves your particular needs >> well, i have to tell you, the company had better numbers to begin with, but there are some things, like when you saw the move in dick's, people realized, wait a second, they own sporting goods. you saw it with williams-sonoma, they have a beautiful way to appoint different rooms, and now you're seeing it with best buy a&f had the hot clothes. gap, they have the price point it's best buy that is going to be the one for tech, and i really think corie barry has it. >> comp is up 3, they raised the

guide. gross margin more than 41%. >> a lot of people didn't see dick's coming. people said, look, everybody fails when it comes to gap this is one more executive who will fail. david, this man has come in and this was now -- every single decision, athleta is not completely with lulu but what he's done with the flagship brand and old navy is nothing short of astonishing this is a great turn. >> a heck of a turnaround, no doubt about it recent peak, headed back toward that let me talk about a retailer or get your take on a retailer that's about 40 times the size >> that would be costco. >> yes, it would, with some $360 billion market value, reported earnings let me give you quick headlines and let you tell us what you

think. 6% comps and 11% ebitda growth that's earnings before interest and taxes, the fiscal third quarter for the company. thoughts >> look, this was probably great. now, we do have a change of the guard there. rich, i think, was the smartest cfo i've ever met. it was very hard to fill in. he was the ceo from kroger and he's not nearly as funny >> humor goes a long way. >> that is the funniest man. when i had my back surgery, of course, when i had to pull the plug off the catheter for the gamestop move. he sent me a joke every night. just makes you smile. >> it's costco and it's up 61%

>> deflationary. if you don't work with them, they introduce a kirkland signature brand. they are the toughest most pro-consumer they're continuing to price cut, doing a lot more with technology it's an amazing company. >> and the hot dog stays at $1.50. >> you did a doc on them, didn't you, 100 years ago >> i'll tell you what else is very good, bakery aisle. >> bakery? >> the bakery has stepped up its game i've always loved the bakery and the way it smells. now we've got buns and this was a call for the new people. remember, you have a new ceo and cfo. the ceo has been there 41 years. miller, he'll get the culture.

he's from kroger touchy-feely, you remember at the end when rodney would say something sweet and kind no, you've got to come to play he was the keeper of the flame. >> how many straight calls did he do? >> 131, almost one of the things that's amazing about him, he didn't suffer fools gladly if you said something really stupid on the call, he would find a way to make you realize, come on, this is the big leagues. step up your game, for heaven's sake. >> when senegal was in charge and he was running it, you had a level of precision that was scary. but the whole line, everybody has been great it is a tribute to them that when you go there, it's the same person that's the manager of your store that you went to 20

years ago. there they are, and dave says hi, jim, and i say, hi, dave. >> when the ceo visits every store once a year -- >> they added 30 stores. the pictures in china -- and, by the way, in china costco is revered by the government because they keep prices down. >> tesla is pretty well thought of in china as well. >> yes, that's very true china is interesting, they respect anything who brings the price down for their consumer. i'm not as anti of the government as i was at one time. >> what government >> the prc i think the prc are trying to recapture -- look, i think that they've heard the drum beat, they're going to be shut out everywhere. >> there was a time where you didn't even want them coming

public here. >> there was a terrific fellow, a cfo came and had a great chinese company, and i was talking about, you know what, they're letting capitalists come back i sense that a bit do you feel any movement >> i was able to spend a good amount of time with some senior chinese business leaders recently, and it's interesting, because of course, like so many things when it comes to this, you want it to be black and white but there's an awful lot of gray. >> how many shades >> and i do think -- you look at china from an economic perspective, the consumer has not in any way come back in the way it was expected after the lockdowns ended. >> you saw the pmis last night. >> and we know they have gone more deeply into what they're best at, which is manufacturing and potentially flooding the

world with cheap exports, cars in particular, but so many other things and to your point, that sets up a lot of tension with a lot of different countries, not just our own. but the question continues to be, what about the chinese consumer are they going to do more to help the property sector, to try to instill more confidence it's a confidence killer when you can't move into the apartment you bought or you can't sell it, not to mention, of course, what it means from a revenue perspective for the municipalities that have lived off the land that they were able to sell to developers. have they done enough? and then confidence as well in the business community overall because xi is not and has not been a real believer >> start helping housing, which is no longer just throwing everything at anyone in europe a if the chinese would focus and

get their act together and continue to encourage capitalism, i have no choice but to shift my view a little more positively. >> and the drills off the coast of taiwan, largest military exercises of the decade. >> they have to stop that and taiwan has to develop a real military we can't count on us >> it will continue to be an area of tension. >> i'm not a friend of them. >> no, i understand. i get it >> they're doing some things that are positive. >> listen, you talk about cheap things they could flood the world with cheap evs. you want somebody to buy a $20,000 car in the united states, suddenly you're having -- >> that's the union. >> they have 47 different makers of evs in that country. >> 47? >> 47. that was the last number i heard. i might be off. >> we mentioned lulu a couple days ago, their product officer departing, we know to van's. >> how about that interesting post she got

let's be sure we know this she's involved with the van's skateboard sneaker i would say that's a come down from being a product officer of lulu but i don't know, maybe van's is working on some area 51 thing i don't know about. >> vf corp. is the name in question, which was up 6% pre-market ulta the second biggest s&p gainer today. >> they did set up finally a little more realistic expectations, some people feel that there's still more cutting to do. but dave kim ball is a very wel liked guy. sephora, because it's in kohl's, is not that good but i think they've got the prestige back. ulta is a battleground because cosmetics have become a

battleground because of what's happened at kohl's kohl's is going to go to sephora and say you've got to bring prices down. >> we've got a little activism this morning it's a name i've been hearing about for a little while they did show up today we've talked about it in the past in part because of its former relationship with barstool sports and the current deal it has with espn. the activist in question is the willy wonka -- i'm kidding i don't know him they get a special purpose vehicle and they have a track record i'm told the halfway decent don't know the guy know its chairman a bit. and they are saying we think you should sell, basically is what their thesis seems to be given our understanding of the

company's assets, we believe the price will continue to stall and we believe if undertaken it could generate equity for investors. their recent history is not great, they spent $163 million to buy 56% of barstool and then $388 million to buy the rest, and then six months later they said we're done and gave it back pre-tax loss, maybe $800 million. then they go into the espn deal that we talked about a bit, and so far not much to show there, except for a lot of losses adjusted ebitda, lost $338 million, guided to an ebitda loss of $400 million in 2024 estimated to have invested $4 billion of shareholder capital, interactive counterpart, original gaming properties, and so far at least, in the opinion of this activist, they have failed to do so. we'll see if they get any

traction, but i did want to mention that stock is up 8%. >> i'm close to the barstool trade. >> i thought you were close to willy wonka. >> david portnoy handled himself fabulously what you see is what you get he had the right intentions and brought a lot of attention to his site and to penn and i think that this team really did him a disservice. they did him a disservice. i mean, he brought traffic, he's done so much that's been right, including, by the way, the adoption penn entertainment, they fooled themselves, because portnoy came on my show and announced it, and he was all gung ho and i think that these guys -- i don't know willy wonka, but i know that portnoy was the honest guy in the deal. >> it didn't come out well for penn you can see what's happening in

the stock price over time, reflecting a lot of those moves that have not been wel received jim, i wanted to come back to mongodb and come back to a theme that you and i have discussed a number of times, gap and non-gap and the reconciliations, in particular for stock-based compensation because it shows up again here in mongodb many shareholders dismiss this. >> that's crazy. >> you can seethe stock is down, it's not because of this it's because, as jim noted earlier, it's a slowdown, significant slowdown, losing a quarter of its value it is worth noting their stock-based comp expense was $127 million, up from $300 million a year ago, and when you look at the difference, what that means, much of that results in the real loss to real eps and, by the way, it's the case with salesforce, too their margin looks a lot different when you take out stock-based comp. >> at least they buy back stocks

so there's no dilution >> and it's not as though stock-based comp is going to go away the point is when you have a stock down 25%, are you going to have employees who really want to keep getting it, or do you have to replace some percentage of it with cash. that becomes a real expense as opposed to one that you can sort of get away with or wash away by going non-gap. just a point i wanted to make. >> i think that's a really important point, because we can look at the balance sheet. >> aren't there one or two companies that report gap? is it microsoft or apple one or both of them. >> apple is gap. >> going over apple's income statement and balance sheet, just an example, probably the best, maybe the best in the country just in terms of clarity. being able to understand people are trying to understand a company's balance sheet. a lot of people don't try to understand if you look at apple, you'll get everything it's crystal clear. >> from one of the biggest cap names to the russell, jim, gains

today doubled the s&p. what is that telling you about how the fed sees today's number? >> that index has just been a horror show. yeah, that's been a horror show the whole time things have been not great. i kept thinking it was going to come back. it's very positive by the way, you know what just hit an all-time high eli lilly. >> after goldman's target. >> $130 billion from $100 billion. >> they're going to raise the size of the market by a third. >> last quiz before the weekend, what happens june 10th >> june 10th is apple's developer conference. >> no, that's the date the fda looks at the alzheimer drug. >> that soon could it possibly be they're going to have another blockbuster? >> i don't know. those drugs are very tricky. what they're doing has definitely reversed for people,

if you're younger and have alzheimer's, it's a game-changer and i just think that we could be changing the narrative if they get that approval. >> if they do, we're going to have to look at what they're doing on the science side and see how they differentiated themselves. >> they've been doing the same thing for 30 years. >> astrazeneca is coming on. we have the conference this weekend for cancer they've got two plenary presentations. unbelievable what they're doing for breast cancer and lung, small cell. >> let's get to rick santoli hey, rick. >> viewers, listeners, what were you doing in may of 2020, basically four years ago i can tell you in chicago pmi was at the lowest level, this 35.4 main number takes us back basically four years to may of 2020 to find a lower number. let's go through how weak this is if you look over the last 20

months, we've only had one read above 50, that was november of last year. this is the third read under 40, and as i said, the lowest since may of 2020. we'll call it four years you're looking at equities moving lower and interest rates moving a bit lower it doesn't seem to please anyone and that inflation number that seemed to excite interest rates lower, well, we have weaker income, weaker spending, weaker real spending, and the four inflation metrics, only one was improved from last month the pce core deflator month-over-month, instead of 0.3, it was 0.2 "squawk on the street" will return after a short break

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we failed to mention at the top that today is the final trading day of may and take a look at some quarter to date nasdaq 100 gainers moderna will lead you, pdd, nvidia, qualcomm down the list you find adi, alphabet, texan, kla and others. dow holding on to 60 pntois in the wake of the brutal chicago pmi it number. back in a moment , tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. (♪♪)

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it's time for jim and stop trading. >> secret sauce here behind ai pcs. some people think it's qualcomm. that's way up. forget about it. it's arm they're in every one of them and, by the way, next year, there's an nvidia arm laptop that i think could be gigantic, so if you're not -- if you're feeling like you've been left behind, go buy arm arm is king when it comes to the ai pc. >> we'll get some keynotes this weekend from lisa su and nvidia as well. >> lisa su is fantastic and look, i feel bad, i dwell on nvidia so much, but amd is so good and arm is so good, and i feel bad because lisa su is remarkable jensen is in his own, but amd

will have its time and it will be fantastic. >> jim, how about tonight? >> tonight, i'm going to the hamptons kidding. i have c-scalar. i'm not going. c zl scalar good for jay okta had it and then the stock went back down it's an oddly powerful week. remember when we used to have earnings and then earnings season ended no there's no season ending to earnings. >> never ends, man just starts all over again, yeah to your point, doesn't end. >> right. >> it's the weekend, so i hope you enjoy your weekend. >> best country road -- best john denver ever at the cedar rapids five cities auditorium. >> that was peak john denver. >> not how i envisioned the show ending, but i like it.

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good friday 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 are showing a pretty mixed picture. the s&p trying to rebound here, led by rebound, energy, health care and utilities financials as well the dow up 32 points after yesterday's big slide off salesforce information technology is swinging between gains and losses nvidia is higher

some of the software names are lower. take a look at treasuries right now and what i would call a market and bond friendly report from the pce which we'll talk about the 10-year yield. below 4.5% 4.49% and the 2-year yield inching farther than the level definitely buying of treasuries as we end out the week, a week where stocks are lower the s&p down about 1.3% so far this week. 30 minutes into the trading session, here are three movers we're. dell shares slum mgping. costco, pulling back from record highs. the company's quarterly profit, revenue and same-store sales beating estimates and the company has no immediate plans to raise membership prices or the price of their 1.50 hot dog combo. the stock giving back 2.5% the move on gap surging after sales grew at all four

properties gap, old navy, athleta, banana republic, the company in the middle of a turnaround and so far it's showing some progress, especially athleta was strong. the big story to talk about today is the inflation number, the fed's preferred number, when they pay 2% and on that front we got good news both for the fed and for investors, for everyone who has been dealing with these high inflation core, you can see the step down, nice one, year over year 2.75% the lowest of the year and the 0.2%monthly increase the smallest gain of the year so, that higher inflation that we were dealing with and talk about in the above consensus numbers in the first quarter, look like a first quarter seasonality thing. which is a really good story just some other numbers that were interesting overall pces, when you put in food and energy with the fed target it's 2.7%

year over year it's not 2%, but 2.7%. that was in line and that continues to show progress the overall monthly was 0.3% so i would say good progress as far as the other data on spending and income, incomes weaker than expected and spending came in surprisingly lower. step down in services spending where we saw the spending number fall if you factor in inflation. 0.1% services, moderation, very key there. goods spending was a decline, but restaurants, transportation, actually all saw slowing growth. >> real spending down 0.1, down 0.4 on goods seen one gdp tracking estimate from capital economics which was at 2.7 they go to 1.2 because their consumption number took such a big hit. >> the consumption revised lower in last quarter's gdp which

starts us off as a weaker base as the unless were coming out i was thinking about the conversation john williams the head of the new york fed talked to him at the economic club of new york, they were right along with what he is forecasting, which is that the policy has been restrictive, hurting the economy, not too much, and inflation should continue to deteriorate in the second part of this year listen to the highlights of that conversation. >> we're looking at the inflation data and all the factors that i think influence inflation, which includes labor market indicators, wage growth, all these others, and they're showing broadly consistent signs that inflation is continuing to move towards 2%. >> not using the phrase soft landing but describing soft landing. >> i'm not. >> are you purposely not >> i am purposely not using that. >> why >> i don't want to jinx things you know, it's -- and also means things different i'm, you know, an economist so i'm looking at the data and things it's, you know, what i would

love to see is, you know, is to see inflation come down to 2% hopefully over the next year or two and the economy stays strong that's how i view -- >> you're kind of pulling that off so far. >> did i mention the jinx word >> see how funny monetary policy makers are. >> a laugh riot. >> a hoot. >> i think the important point there is he sees across a number of data points he watches inflation still showing a lot of progress on the downside towards the 2% level i couldn't pin him down on when they would cut rates because he said he doesn't know, however after that conversation is september in sure. december in play, sure they feel that the first quarter was an anomaly and that the policy rate is holding back the economy and we saw evidence in today's numbers that is actually happening. if you want to see a little bit more inflation progress, good chart out of bank of america

this morning looking at the cpi components breaking it down. more than 50% of them, there's 74 components, are below 2% and that's the first time we've seen that since the 2020 pandemic if you look by breadth and weight you can see they have started to come down, but the breadth in particular, which is a good sign because the fed, you know, it's harder for the fed to target things like auto insurance and home prices right now, but increasingly that would be a chart that would show what fed is doing is working. >> home prices, by the way, thanks to redfin almost 7% of listings are getting price cuts. that is the highest percentage since 2022 i believe so as we move into the spring selling season maybe sellers are getting realistic. >> the hope there the cpi numbers are lagging what we're seeing in real-time on home prices and that should come down one mover we should talk about is dell because shares are plunging after a big run up this

year adjusted earnings come in with a beat, 127. revenues also strong dell's infrastructure solutions group did see sales rising 22% on strong demand for ai servers, but the unit's operating was flat i spoke to the cfo about the quarter and here are the big takeaways from her first of all, she told me, we delivered strong q1 with growing ai momentum and also saw the wholistic demand environment improve. we saw demand in the commercial pc business. on guidance we raised our guide for the year and it's not normal for us to do that in q1, but we feel so confident about over delivering because of the ai momentum that they are seeing. on margins, this is kind of the reason the stock is down and a disappointment, especially the isg infrastructure solutions group, it wasn't only ai servers, there was seasonality of the storage business impacting those margins and said we will ramp those later in the

year that seems to be, david, where the debate is on the stock the margin execution, because the demand, what they showed in server backlog, may have only been really tracking, you know, the ai server demand for the last three quarters is very strong, it's almost $4 billion in terms of the backlog. it's $3 billion in terms of the server demand. >> a bit below, though, what the street had been anticipating in terms of backlog. >> i find that exciting. >> and stock investors got excited. at this point the stock price has been incredible because of the enthusiasm around generative ai in general, linked with nvidia, of course, dell, because it uses its -- the nvidia chips and putting the servers together that are delivered to its end customers and you're right, i mean, the key interchange was the one between tony sacconaghi at bernstein and the cfo you cited and talked to in terms of trying to understand whether the ai server business is really

a -- doesn't have much margin in it and whether that -- >> the unit economics of the ai server. >> and i shared an updated point this morning, shared by one investor, positive the idea perhaps some of what happened in the quarter as well was delivery of or contracts with a very large customer who they wanted to treat quite well in terms of price for future business. namely what i would call the must company the likes of spacex, and even tesla, you might imagine they are a large customer we'll see. this is the debate going on. a lot of this, sara, has to do with the run up into earnings as well, and at least a bit of a disappointment on the backlog number not to mention worries about margins. >> absolutely. you have to mention the year-to-date gains going into this and the fact that it was -- it's tied to nvidia, there's been such a strong ramp in ai, they did prove that, but, of course, now they're going to have to prove the margin story i asked the cfo if you're going to break down a server operating

margin, maybe in a few years, it's new and so much goes into that, like storage, but that's going to be the debate around the stock. >> s&p on pace to break gain, the dow on pace for the worst week mixed consumer results all that said the indices on pace for a positive may and our next guest is long bonds, tactically positive on energy and rosenberg founder and president david rosenberg joins us good to see you. >> you too. >> just mentioning the real consumption numbers, the chicago pmi number is a little ugly. sounds like data that would get your attention. >> yeah. i was actually enjoying watching the conversation for the past few minutes. yeah i think -- i think that the economy has hit what we call stall speed. 1.3% of first quarter. looks like we're going to come close to that again in the second quarter i find a lot of people are focused on last year's 3% plus

gdp reading and everybody thinks the economy is just still coming up smelling like roses but it is slowing down materially and we're down to just over 1% growth the question we have to ask ourselves is, where do we go from here? are we going to stay at 1% are we going to decelerate further. you'll be talking about the recession nobody sees coming, and i think the other question we have to ask is that if you're -- if you have a bullish macro view, what is the catalyst that's going to cause the re-acceleration, especially now that the biggest support for the economy the past few years was the excess pandemic savings. i've they've already been more than spent. i think the economy is -- it is weak and the risk is that it's going to weaken further from here. >> do you think next week's jobs numbers will ratify that view? >> well, it's really hard to say with the non-farm payroll report because it's been squad by the

model. even though we have business insolvencies going up and growth business creation going down, half the gains in the non-farm payrolls has come from the model. it's tough to say. the household survey has diverged and peaked several months ago but my sense is that it's probably nothing -- but i think the second month in a row will be fairly soft. >> i think, you know, clearly the economy is slowing, but i'm not sure that many would agree it's stall speed what do you see -- it's still above trend, aren't we? >> it's not above trend. i mean the growth in the economy on the supply side is not 1% when we talk about trend, we're talking about the noninflationary growth and you're looking at the supply side when you talk about trend, that means productivity and labor force growth when you talk about trend, it's probably close to 3% on the

supply side. and the demand side, which is what gdp is, is running barely above 1% that's why you can get a situation where maybe we don't get a defined recession, but demand growth stays so far below what you call trend, really aggregate supply, that inflation will come down, come down a lot more in the flex six, 12, 24 months than what's priced in right now and it will surprise a lot of people on the fed as well. >> david, really quick, we mentioned bonds. where is a medium term target on the 10-year for you? >> define medium term. i think that, you know, i think we will finish this cycle with a 10-year note at or below 3%. >> appreciate it, david. running short on time on a busy friday david rosenberg. >> take care. >> former president trump convicted in his hush money trial. let's get to meghan cosell la who has details for us. >> donald trump became the first

former president in u.s. history to be convicted of a crime with the jury finding him guilty on 34 counts. we're expecting trump to speak just under an hour from now outside of trump tower and he could face up to 4 years in prison when he has his sentencing july 11. what's clear, trump, his campaign and supporters are seizing on this verdict as a rallying cry in trump's push to retake the white house trump immediately began fundraising off the news sending his first e-mail within minutes of the verdict yesterday and his team has been pushing supporters in those e-mails for a historic response that leaves no doubt as to the strength of trump's support. down ballot republicans are fundraising, both the nrcc and nrsc, the republican campaign groups for the house and senate, set records for their level of online fundraising yet the nrsc saying it raised $360,000 yesterday alone the biden campaign is making a similar push for donations since the verdict. the campaign telling its

supporters that the only way to keep donald trump out of the white house is at the ballot box in november. and i also want to flag just one prominent biden critic chiming in, elon musk, posting on x this morning, that, quote, great damage was done to the public's faith in the legal system with this verdict he pushed an argument that we're hearing from many on the right today saying if a former president can be convicted over a trival matter anyone is at risk of a similar fate and guys, when donald trump starts speaking around 11:00 a.m., we do plan to take that live and bring it to you then. >> meghan, thank you a lot of people agree with him this morning appreciate it. as we head to brackeak our d map for the hour, jeep unveiling its first all-lelectric vehicle the fed's preferred inflation number coming in as expected

kansas city president easter george will join us. >> novartis, breaking down what's in the pipeline live from the largest cancer research conference as "squawk on the street" continues i can't believe you corporate types 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.

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stock exchange check out our first all electric model the wagoneer s. >> thank you for having us here with you it's a pleasure. it's an honor. it's very important to show to the world that we can do the perfect jeep with the capability of jeep with a lot of technology and unbelievable performance and be ev. one of the pilars of our strategy we call it freedom to choice freedom is number one original value that jeep as a brand embraces, right. freedom of choice means to give the market and consumer the opportunity to select plane many different options -- many, many different options of power train in the industry. seven different power train system options we can offer six in our range. this one will be ev only and it's a perfect jeep. >> did you wait too long to go all electric >> no. it's the perfect time. it's the perfect time.

why i say that maybe you notice the consolidation of growth is still there, but not at the pace now we're coming with a strategy of more ev options we're doing an ev here with fantastic specs. we're also offering on the same platform many, many other options, hybrids, plug in, internal combustions. >> the wagoneer starts 71,000. i understand be that's, you know, on the upper end by design most people are saying we need our electric vehicles closer to 35, $40,000. when does jeep get to that price ear earnings >> soon. even lower. >> this is carlos. >> my boss already announced that we are working on a project that will deliver to the global markets starting from u.s., a jeep, real jeep, at $25,000 with

battery electric and offer jeep with power trans lower price than that. >> you are in charge of stellantis operations in brazil where you went head to head with the chinese automakers you are flooding the world right now not just with evs but internal combustion engine vehicles when you look at what's happening, box them out of the u.s., make it illegal to sell a ch chinese vehicle here, is that the right strategy or do you believe the strategy is what you used in brazil to beat them? >> any country will decide how to do it this is the most important in the world and they will decide what to do what we did in brazil was to -- to the chinese the power over brands, being jeep probably the highest value brand and the power of products. the level of specification, technology, sophistication,

capability, that jeep delivers to the market, it can be sold higher than the chinese because it is higher. >> you believe the chinese can be beaten. >> >> we showed that in the past, we believe they can be beaten but they represent an important competition level based on price and to do what the market wants, which is lower costs, does lower price. >> when you look at the global landscape and what stellantis has, how important is it that you leverage the success of evs in europe in order to grow jeep as well as the rest of the electric portfolio for stellantis in the u.s. >> that's a very important question stellantis is the most -- sorry jeep is the most global brand that stellantis has. being global, it can enjoy number one the highest level of scales and scales brings competitiveness. we are like the pilot of

innovation, because we assess to scales that other brands don't, and then we share our excellence in technology and innovation with the other brands. this is the power of stellantis. it creates synergies among many brands. >> antonio filosa, ceo of jeep, on a day, guys, i see a lot of new evs when shown, you have to see the people coming around here at the nyse saying what is that it's an electric veep. back to you guys. >> yeah. >> orders are open today, he says. >> thanks, phil and antonio. watching the semiconductor stocks as ever on pace to beat tech this month officially and reaching a new big milestone you might have missed. dom chu has been tracking the action and joins us with more. this is the software ai reversal trade. >> it is it's something that many traders are kind of watching right now to see how it develops in the coming months and quarter because we have seen a bit of a regime change in what sara is referring to, is this notion that we have the chip stocks making up a larger part of the

technology story than software it's being overridden a lot by what's happening with the chip narrative. you can see here, the orange line is the etf that tracks the software, the shares that tracks software the blue line is the semiconductor etf. they've tracked relatively closely for the better part of this year up until the beginning of this year when we started to see the divergence of chips outperforming those stocks the drivers behind that, if you look at the chip trade it's no surprise, nvidia been the real, real driver of the chip out performance. in fact, for that vaneck vector etf the smh it makes up roughly 23% of the weather there if you add in taiwan semiconductor and broadcom as well, those three stocks make up roughly 42% of that particular etf. so they are the driving force behind the out performance and it's mostly nvidia as you can see here the under performance in three very heavily weighted stocks

within the software ishares etf, which are salesforce and no surprise the last couple days here have been rougher for them. adobe and intuit these three names in the software side of things have been more severe under performers and make up roughly 22% of the etf in total. as we talk about this divergence, it comes down to whether or not the story will change with regard to the ai influence on certain software stocks for right now, though, the narrative is overwhelmingly on that chips side of things i'll send things back over to you. >> the salesforce numbers did not help thank you. bitcoin on pace to beat the s&p 500 this month we're going to head live to austin for the latest from one of the biggest crypto conferences next watch ulta beauty beating on the top and bottom lines after guidance comes in light but many analysts calling it, quote, better than feared and a reset point for the stock. which is actually higher 1.25%. it's had a tou gth yr. 'll be right back.

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spot, austin, texas. over to mckenzie live from the crypto conference. >> hey, david. consensus is a big deal for crypto enthusiasts, but this year wall street is here in full force as well. i sat down with new york stock exchange president lynn martin as the nyse is planning to issue bitcoin options. >> we've been having conversations with the sec for more than six years about bitcoin etfs i think you can't argue with the success of bitcoin etfs, and the liquidity it has brought to the underlying markets. >> crypto's market cap has gained about a trillion dollars since those etfs began trading the funds up to nearly $60 billion and assets under management with blackrock this week surpassing grayscale in aum. a lot of issuers have spot ethereum funds in the pipeline

and the sec's move last week to pave the way for their approval came as a shock. the biggest talker here, the seismic shift in crypto politics in washington. president biden seems to be warming up to the sector donald trump is accepting political donations in digital tokens, and there's also pro crypto legislation swiftly getting voted through on capitol hill >> elizabeth warren had a huge sway over crypto politics, and if anything happened in the last two weeks, her party said, elizabeth, enough. now you've got us in hot water with this giant group of crypto voters in a very tight election year and we don't appreciate it. >> the next push is to get stable coin legislation to the finish line. plane see that as a big part of securing u.s. dollar dominance guys >> mackenzie, what a month for the etfs and for policy in general. thanks for that. meantime the fed's preferred

inflation measure pce coming in as expected this morning what does that mean for the fed and rates? former kansas city fed president, sther george with us in just a moment [crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪ ♪♪

welcome back i'm pippa stevens with your cnbc news update. former president donald trump is expected to address his felony conviction in new york outside of trump tower in manhattan. his legal team has vowed to appeal the guilty verdict on 34 counts of falsifying business records. the trump campaign said it raised a record 34.8 million in

donations after the verdict came down the israeli military confirmed today its forced backed by tanks and artillery are operating in central rafah the southern gaza border citi where hundreds of thousands have fled to escape israel's bombardment the offensive coming despite rising international backlash. vermont the first state to enact a law requiring fossil fuel companies to cover damages from climate change. the state's republican governor let the measure become law without his signature late last night. the law which comes after record flooding in the state last year is expected to face legal challenges maryland, mass cachusetts and n york are considering similar measures. >> thank you traders this morning adding to bets that the fed will cut rates in september after the fed's preferred gauge of inflation pce eased last month for the first time this year our next guest says questions are being raised about whether fed policy is sufficiently

restrictive to bring inflation back to target former kansas city fed president esther george joins us now after today's data do you still wonder whether policy is restrictive enough >> hi, sara. no, i think that we do see policy that aggressively moved is at what we would believe to be at restrictive levels we have heard clearly from the federal reserve that they intend to be patient while they see how that policy moves through the economy. and so far, inflation has made progress, but it's made progress in part because of their interest rate and because supply has been catching up to the levels of demand that we've seen. >> you think it's made enough progress where they can think about cutting in september >> i haven't heard anything yet that suggests they think they've made enough progress most of the fed speakers are telling us, and we heard this at

the last press conference, that they can be patient and they need to see more data, so i think if you just look at the inflation prints we've seen this year, inflation has not popped up [ inaudible ] again so i don't think this issue of a rate hike is a real threat right now, but i do think they will want to see inflation begin to resume a move back down that gives them that confidence. >> i feel like -- so today's number, even last month's number, sort of showed us that those q1 hotter numbers were an anomaly or seasonal or something funky was going on, and it does feel like we've resumed progress, maybe not as quickly as the back half of last year, but we're seeing increasing signs demand is weakening in today's spending numbers, for instance, and in the gdp numbers from last quarter, so as those two things come into better balance, esther, won't they move faster to avoid wrecking their

soft landing >> well, remember, sara, the goal is not soft landing, although that would be quite desirable. the goal that this economy is focused on is achieving its inflation target and so they want to have confidence that inflation, which is still well above their target, is going to be moving down that will take more than just one month of contradictory data, relative to first quarter. i think it's going to take them several more months. again, depending on how the data fall, to gain that confidence. so could that happen toward the end of the year? certainly. i think it could but i don't think it's happened yet and this committee is signaling, i think rightly so, that they will wait and see as the data comes in to make that call. >> what is it in the inflation data that worries you most is it the services spending? is it the home prices? because there are a few pockets there that have been a little

bit sticky and there are questions about whether keeping interest rates high for this long of time will actually help with that, when it's driven by inventory problems, for instance, and housing, or catch up auto insurance from the pandemic >> no. those are all fair points. i guess the way i look at the inflation data is to see how broad-based it is. and i think to this point, while we have seen certain categories of inflation, like goods inflation [ inaudible ] come down, we know that the housing services sector has some lags in its data so we'll need to see that services is really a different animal in many respects because it's the services sector that will be less sensitive to the fed's interest rates it could take longer that's why i think when we look at next week's data, those will be important indicators too. so looking at the jobs report, what is happening in that labor

market is it continuing to soften >> >> are you convinced that it's softening, we're in a softening trend on jobs? >> i think we are in a softening trend but i would distinguish that from saying weakness. we've come off some real highs in this economy and we are moving down, the economy is moderating, and i think that's what you would expect. >> the question is, is it going to continue to settle down to trend growth and will we continue to see the labor market settle out at less tight and more moderated levels, and that, of course, combined with inflation continuing to move down, is going to be important. >> esther george, really appreciate your perspective, having been around that table. thank you. >> thank you, sara. >> former kansas city fed president. as we go to break check out big gainers on the s&p this week an interesting list. best buy will lead you with a gain of more than 11%. farther down, marathon, wbd, ralph lauren and others. still to come, what's next for

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welcome back to "squawk on the street." the largest cancer research conference in the world kicks off today. let's bring in angelica peebles here at post nine with a special guest. >> hey, carl well, like you said, we have a special guest joining us today, and that is vasant narasimhan. good morning thank you so much for being here i want to start with these positive leukemia drug results you're presenting today. tell us more about those and what's next for scemblix. >> hi, angelica. great to be here today we're excited about the data we announced for scemblix and the first line setting this is really practice changing data we're really resetting the bar of what's possible for patients with cancer called chronic my yes lloyd leukemia we've been working on this for

25 years and this is a medicine that has shown superiority to the standard of care in terms of efficacy and safety. we're really excited about the medicine we have filed it with the fda and it's in what's called the fda real-time oncology review, which really shows how excited even the fda is about this data. we see this as a potential $3 billion plus medicine and we hope to do even better than that and we're really excited to launch this medicine later this year. >> and you said it's a different type of review timeline. what is the timeline on that, and when do you expect to get this new indication? >> we're really excited. you may have seen earlier this month we received breakthrough designation for this medicine and we have real-time oncology review that allows us to file the medicine with fda real-time on an ongoing basis. we've completed the filing of this week, and we would expect approval in the coming months. it's hard to know exactly when

it would be, but this is really now also a top priority for the fda to review quickly, given its potential to really reset the standard of care for patients with this cancer. >> okay. well let's switch gears a little bit. you also have some new breast cancer data today. tell us about those results and how you see them expanding use of cascalli. >> we believe our best in class breast cancer medicine and also now under review for patients in the so-called advent settings. to prevent the recurrence of breast cancer. we're presenting additional data in patients who have a severe form of the disease demonstrating a consistent response to kisqali. it builds on the broad data set that has shown consistently in which ever setting we test this medicine it performance at an outstanding way to help women either treat their breast cancer or prevent the recurrence of the breast cancer.

this is a medicine where we expect significant sales potential. we've already said in its current indication, we expect it to be over a $3 billion medicine on top of that as we expect approval later this year in the setting, we would expect another multibillion potential for this. kisqueli and scemblix makes us from confidence in the 5% growth guidance we've given in the coming years given these medicines are early on in their life cycle and can power our growth through this decade. >> one thing everyone wants to talk about these days in terms of pharmaceutical companies is the inflation reduction act and those drug pricing provisions. there's been a lot of talk some of those provisions could change how cancer drugs are developed, so what changes are you making, if any, at novartis in light of these new regulations? >> yeah. we think the ira is going to have really a negative impact on really developing new cancer medicines, particularly for the elderly. i think what you're going to see

is a shift away from what we call small molecules or often medicines that are formulated as pills for the elderly, and you're going to see that shift happen very, very quickly. you'll see more focus on rare cancers outside of the inflation reduction act, cancers for younger people, but not i think as much for the elderly population that's really too bad, so i think this is an urgent matter and hope congress will take up, correct the ira, move both small molecule medicines and large molecule medicines together to 13 years of protection, and allow our industry to develop cancer medicines that patients need one of the big challenges in cancer medicines we develop these medicines over time. the two examples i talked to already about, scemblix and kisqueli we developed these over many, many years and that eats into the time we're given in the ira with free pricing. this is something we really have to correct if we want cancer drug development continuing at

the pace we see here. >> before we let you go, i have to ask you about obesity, that's something everyone wants to talk about and you said you feel like glp-1s, that's crowded, but you want to work on next generation obesity products tell us about those efforts and where you are and when we might expect to see something from novartis >> look, we're very early in our focus is on other areas. when we think about obesity we're looking at novel mechanisms of action, mechanisms of action that could complement or be completely a different approach to glp-1s or anything in what's called the pathway. sirnas would allow us to dose these medicines every six months or less frequently than the currently currently prescribed medicines. we're interested in medicines that can preserve muscle one thing we know with the current class of medicines, you not only lose weight but muscle mass which is not great for patients in the long run these are the kinds of things

we're looking at everything is preclinical. i wouldn't want to say we're moving quickly -- we're at a place when we know exactly when the data is going to come out, but we think we have an exciting pipeline we have ten phase readouts that were positive. growing double digit in the first quarter and upgraded our guidance. we're on an exciting trajectory, even without the obesity class in our portfolio >> thank you so much for joining us today >> angelica, thank you as we head to break, a look at one sector on pace for its best month in years. up more than 20% in may. we'll tell you why and what it is after the break still ahead in the next hour, the ceo of sentinelone as shares slump on weak revenue and lowering its full-year guidance. we'll talk to the ceo about that 15.5% move lower next on "money movers." don't go anywhere. when i grew up as a kid, i

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clean energy on pace for what would be its best month on years, handily beating the s&p let's get over to pippa stevens. i'm curious what's in this so-called clean energy sector. >> well, these stocks are pulling back this morning but still wrapping up a big month with the tan solar fund gaining more than 17%. that's its best month since july 2022 and seeing its first inflows of the year part of this is bouncing off a low after the sector was beaten

down but also optimism around power and demand growth driven by data centers. the tech companies building these data centers have sustainability commitments which should drive clean energy deployment especially since big tech can be less price sensitive. that's lifting the scales with first solar up 50% this month. also the largest weighting in the tan fund next tracker, canadian solar make equipment for large projects while analysts say that group may have bottomed, the same cannot be said for the residential players. sun power and enphase in the green for the month but more because of overall buying rather than a strong fundamental case the group continues to get hit by high rates. there could be more pain ahead s >> it's almost all solar are there any big wind-powered public plays out there

>> there's a company like orsed, the major developer of offshore wind and tpi composites, they manufacture turbines, but offshore wind remains challenged because they are so capital intensive. they've really been hit hard by higher rates also for offshore wind specifically, the supply chain is still developing. there are issues like there aren't enough vessels that can lay the cables, there aren't enough vessels to carry the turbines which are getting bigger every two years clean energy as a whole is still working out a lot of the supply chain issues on solar there's a shortage of transformers so that tends to make some projects backlogged. ultimately what analysts are now pointing to is this surge in data centers, all these tech companies, the metas, googles, amazons of the world, all have net zero commitments they are the ones that republican couraging the buildout of clean energy. >> something we've been focused on as well

pippa, thank you >> quick programming note as we close out the hour we'll talk to the ceo of hilton here on monday live from the nyu hospitality conference talking consumer trends and whether the demand is as robust as it has been in reebt quarters when it comes to travel, especially tourism. >> the b of a chart is memorial day travel flying like it's going out of style >> but the hotel rates -- the prices have started to come down a little bit and airfares,n preg the nasdaq mo le rk cere ovag after this trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the award-winning trading platforms.

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♪ ♪ [thunder rumbles] ♪ ♪ good friday morning. welcome to "money movers." i'm sara eisen with carl quintanilla live from the new york stock exchange. we are awaiting former president donald trump speaking at trump tower. he's holding a news conference coming after a new york court found him guilty on 34 counts of falsifying business records. the sentencing is set for july 11th we'll bring you the remarks as soon as they start we heard from him briefly outside the court yesterday when he left. called the guilty verdict a