i have no idea. final check on the markets, and don't forget what happens on friday. we are now down 10 on the dow. great month last month, almost 7% for the nasdaq, up another 89 points. there it is. 4.6% on the ten-year. that could change on friday. make sure you join us tomorrow. "squawk on the street" is next. ♪ good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at post nine of the new york stock exchange. we do quick off the month of june. these first couple weeks will be busy. futures are pretty solid after friday's monster closing rally. ten-year is back below 4.5%. our road map begins with the a.i. race. the rivalry intensifying over the weekend as nvidia and amd preview these new generations of chips powering the global a.i. boom. plus, johnson & johnson

closes its $14 billion acquisition of shock wave medical and unveils new data on its highly anticipated lung cancer treatment. j&j's ceo joins us exclusively a few minutes from now. and the memes roar back. you heard becky just talking about it. gamestop shares surging premarket, this after roaring kitty revealed that he may have a huge position in the stock through options. let's begin with nvidia rising in the premarket. company unveils the road map for its next generation a.i. chips. the platform titled ruben is slated for a 2026 rollout. blackwell was launched just months ago. nvidia says it is committed to releasing a new a.i. chip architecture every year. jim, we sort of highlighted these keynotes over the weekend. >> it's a joy, the two-hour one was just a joy, and there were very interesting moments where you didn't know what was real, what was a.i., but he explained accelerative computing and a.i. and then to the new generation,

which is going to be 5 or $6 billion to build, run cooler, and have a lot of video. so, i mean, i think that, david, when you see what he's up to, and then you read these articles about how a.i.'s over, the contrast is ridiculous. he's already unveiling something after his current -- actually, something that hasn't shipped yet. >> i completely discounted those articles that you're referring to. i mean, there was one -- there were a couple of -- that a.i. is over. it's absurd. it's just -- >> it doesn't stop. >> the skepticism seems to be more based on what we can expect in the near term in terms of how it's going to change things and/or the apps that are going to be available and the various things in the enterprise. but i don't think there's anybody who argues -- well, there may be, but i'm certainly not oneof them -- that this is going to bring a huge societal change. it's coming. >> you don't think so? >> it's coming and the only question is how quickly it gets

here, and obviously, they just keep -- what's going on over there? they are increasing their own rate of change as quickly as a.i. itself. >> it's creative destruction like i've never seen where you basically -- well, you can go side-by-side. you kept saying, listen, you can do these iterations, go side-by-side. by the way, 100 million chips of arm in these things too. they say that there's going to be 100 million. they put out a number that was pretty extraordinary. that's why arm is moving so much. >> trying to get 50% of the, what, pc market? >> yeah. i mean, actually, going to want to have server market, everything. but arm expects 100 billion arm devices will be ready for a.i. by end of 2025. that's big. look, one of the things you got -- okay, so, i was showing my wife this thing because it's pretty great. it's a really great presentation, and there's a moment where -- let's say you go to a doc in the box. we have one in our building. let's say you have somewhat complicated thing. you don't expect a follow-up by

the doctor the next day, but you get one, but you don't know it's not a doctor. it's a a.i.-generated, and it's got all the -- it's actually got empathy programmed in. and i was watching someone talk to it, and that's the -- that doctor is now freed up to do something else, but i found that this a.i. doctor to be very soothing and stimulating. >> well, if the reid a.i. demonstration in the last few minutes with andrew is any indication, that's where we're going. there's the productivity gains, jim. there's the cost savings that jensen talked about, and the energy savings. take a quick listen to a piece of the weekend's keynote. >> we've been experiencing inflation for so long in general purpose computing, now that we finally came to -- we finally determined to accelerate, there's an enormous amount of captured loss that we can now regain. great deal of captured, retained

waste that we can now relieve out of the system, and that will translate into savings, savings of money, savings in energy, and that's the reason why you have heard me say, the more you buy, the more you save. >> he's talking about savings, jim, in the 90% range. >> yeah, well, initially not, but then, yes. and what he -- i think what he's up against is that if you're going to spend $6 billion on a datacenter, you're going to spend most of it going to nvidia, and he's saying, listen, go ahead. it's just better and better if you do. the amount of cooling, the amount of heat generated here, the amount of copper they need was mentioned. but david, throughout this, what you get is, we're just constantly replacing different roles. remember, a lot of people overseas have a birthrate that's so low that they won't have people to do manual. but i think there wasn't anything -- i would trust a robot in the kitchen.

i would trust a robot to make a drink. >> the first place, though, may very well be places like india in terms of call centers, all those jobs. >> all center jobs are going to be most wiped out. >> taken out very soon, potentially, given what generative a.i.'s capable of doing. guys, if you don't mind, i'm going to get to paramount, because i think we're at the end here, jim. we're at the end. >> can i just say one last thing about nvidia? >> yes. >> i think he's ahead of lisa. okay. lisa su at amd. >> we'll come back to nvidia many, many times during the course of the show. we're at the end on paramount, and the reason i say that is the following. the terms have been agreed to between the special committee and the buying group, of course, of skydance, david ellison, and redbird, the private equity firm that has been at this for so many months, and we have reported on all the ups and downs here. it was really always theirs, potentially, to have, you know, i talked briefly about,

obviously, interest in sony and apollo but made it clear that never really amounted to as much that had perhaps been hoped for by some of the b holders out there. now the deal is awaiting the signoff of the control shareholder of paramount, shari redstone, who owns national amusements. that is expected to come, and so we are going to have an announcement, don't know if it's going to be in the next 24, 48 hours, but very soon, it would seem, of a deal, and it's quite a deal, by the way, to go through. let me give you some of the details as i understand them, having spoken to people familiar with the situation. all right, shari redstone, she's going to get $2 billion for national amusements. that is roughly the correct number. here's where things get interesting and perhaps a bit more complex. skydance, at the close of the transaction, whenever that will be, is going to tender for

almost, not quite, but high 40% of the b shares at $15. if you're a holder of the b shares, you're going to be able to sell almost half of your shares at $15, and then you're going to be left with equity in newco. by the way, that is being brought in now, i'm told, at a value that is less than had previously been tossed around. the $5 billion number had been used. now i'm hearing it's in the high $4 billion. they're reducing the overall value of skydance, that gets rolled in, and then as well, skydance, redbird, larry ellison, obviously, is part of this, they're going to contribute $1.5 billion in cash to paramount's balance sheet. that is essentially viewed as debt reduction, trying to get them on the path to investment grade. growth capital. and what do you end up with here? you end up with what, in many ways, is a private equity deal for lack of a better term. you're going to have a public equity stub, roughly a third of

the shares currently outstanding now will be held by b holders or held by shareholders, and the remainder of the economics will be held by skydance and redbird, and of course, they also will control the company through its a shares. the numbers are pretty s staggering, because it's $2 billion for shari redstone, $4.5 billion that will be used to buy out roughly almost 50% of those b shares, and it's $1.5 billion in cash contributed to the balance sheet. that's $8 billion here. now, of course, we know larry ellison has multiples and multiples of that, but redbird for its part as well, roughly $10 billion under management, certainly going to be raising new funds as well to contribute that significant sum to getting this deal done. and don't forget the risk that they're taking on here as well. of course, you're talking about a company that has no shortage of challenges that is currently run by three different people.

some people have taken to calling it the pep boys are running paramount. that's going to be in process for quite some time, so you don't know how much the assets are going to be diminished over that time period before you're committed to step up and spend that kind of money. but there is a belief, it would seem, certainly in the skydance and redbird part, that once they merge skydance in and start to execute the strategy that they believe they can put in place, it will bring significant accretion of value. a lot more on that strategy in the days to come, of course, and one would expect from when they announce the deal, we'll start to hear a lot more as well. this deal is not going to require a vote of the majority or the minority. the whole process with the special committee replaced -- there's no vote going to be required here, because potentially, that wouldn't go their way, and that was part of the negotiations. there will be an annual meeting tomorrow, strangely. you may get that without any real announcement here of the actual transaction again. and you know, as for the

go-it-alone strategy that at least one director had been espousing, there's a belief generally speaking that not being investment grade, not having access to the capital they need to potentially get there, there simply was not a path that was viable for paramount to really think it could pursue versus the opportunity to give its shareholders a significant exit here and an exit that apparently a lot of them want. we are very close to concluding, at least, this part, but jim and carl, what that means for the future of paramount, as you wait for a close -- by the way, who knows how long that could be? you got fcc's got to sign off, cbs is owned here. we'll have to wait and see. >> david, for a long time, you were talking about it has to be a $3 billion -- >> now it's way more. way more. they went up a lot. >> did they? >> a lot. yeah. they increased their contribution enormously. it was $3 billion originally. now it's $4.5 billion. just going to b holders, and another $1.5 billion going on the balance sheet. the numbers here are quite

large. i mean, you're talking about $8 billion in new money coming in to take out. and then, again, this is not just -- we control the company through the a shares. they're going to control the economics as well. in many ways, it's almost like a public stub for what is a private equity deal. a go private deal. >> yeah. >> we'll get to some more m&a in other industries. crazy monday morning from nvidia to paramount to some pharma, the largest cancer research conference in the world continues today in chicago. our angelica peebles is at the meeting and has a special guest this morning. hey, angelica. >> hey, carl. that's right. we are here live, and i am joined by the ceo of johnson & johnson. thank you so much for being here. i want to start with your lung cancer data. you have some positive results this weekend. but this is a really competitive space, so where do you see your therapy fitting in? >> hi, angelica, glad to be here. every year, i come to asco in order to have a firsthand

impression of what oncologists and patient advocates are thinking about the oncology field, oncology, it's an important area for johnson & johnson. we've been 30 years investing in the oncology space. you're right. one of our lung cancer therapies has been appointed best of asco, best of asco, and in this study, we showed that our subcutaneous formulation diminishes the infection -- infoougs reactions by five fold and lowers the administration time to five minutes. overall, it has shown in different studies that it's able to improve the progression-free survival versus the standard of care and has shown an overall trend in overall survival, which is positive. so, we are thrilled about what that can mean for patients with lung cancer, and we see this as a medicine that has the potential to be over $5 billion

in big year sales. >> and you talked about how you've been investing in oncology for 30 years now and you're now the third largest oncology company, but you want to become number one. what will it take to get there? >> our goal is to continue to invest in oncology. oncology's an important disease. we all have been affected by oncology. more than ten million people a year lose their lives because of oncology and cancer, so for more than 30 years, we have invested in oncology. our aim is to become the number one oncology company with the potential of triple our sales in oncology by the end of decade, reaching $50 billion. and we are working in all areas, different tumor types, different modalities. as a matter of fact, we are presenting more than 60 studies at this cancer. one of them, you mentioned, our lung cancer therapy. we're presenting beta in our

multimyeloma portfolio, showing unprecedented results in patients with one to two prior lines of therapy. we're trying to move this therapy to earlier lines. we're also presenting data in bladder cancer. we have a very unique device combination that delivers a controlled release of a medicine in localized bladder cancer that has shown terrific results, over 80% complete response rate, has breakthrough designation by fda, and we are going to save a lot of bladders with this therapy. we have a very full portfolio in different tumor types with different modalities that is going to help us help more patients and become the number one oncology company. >> i want to talk about talk for a minute. it sounds like no matter what scientific progress you make, that will weigh on your stock price. what can you tell us about that latest settlement proposal, where you are with the litigants and when should investors should expect an update on that? >> we are moving forward to

achieve a complete resolution of this matter. we have presented a reorganization plan that will take care of 99.7% of the remaining claims, and now, it's all about -- all about letting the claimants vote, letting the people vote. we feel very confident of where we are in the process, and we want to get a final resolution so we can continue doing what we do best, which is developing medical technologies and medicines to help patients as we are doing here in this meeting of the american society of clinical oncology. >> and we have a question back at the exchange. >> cramer. it is great to see you. terrific that you came out. just want to follow up a little here on angelica's issue, which is on talc. i know that you made the proposal for people who have ovarian. the plaintiff's bar, which is very elusive, is now talking a

lot abouts mesothelioma. you are winning every talc case. how is mesothelioma -- how are those cases going? huh. live tv, carl. >> angelica, can you tell if joaquin was able to hear jim's question? >> yeah, no problem. what about mesothelioma? how will that factor into this proposal? it sounds like that might not be a part of it. >> we have reached settlements with 95% of the mesothelioma claimants. again, now, it's about our reorganization plan, and it's all about resolving through the reorganization plan 97% of the claims and it's about letting the claimants vote. as i said before, we feel very confident of where we are in the process. let them vote. >> okay. and -- oh. sorry, i think we have another

question back at the exchange. >> no, i think it's all you, angelica. >> yep. no problem. and i do want to talk about the ira for a second because you had three of your drugs that were selected for price negotiation. what can you tell us about those negotiations with the government and what we should expect between now and this fall? >> we have made projections of our growth from 2025 through 2030 of 5 to 7% average growth rate. and we're really happy with our performance so far. our growth in the first quarter was 8%, and that includes the impact of -- we have a history at johnson & johnson of stepping up in order to be able to collaborate in bringing high-quality health care for all americans. unfortunately, the i.r.a. is not the way to do that. it's going to mean less investment in r&d. it's going to mean less cures, and it's not going to address the center problem, angelica, which is patient affordability. think about this. 60% of the price of the

medicines goes to intermediaries. what we should be working is trying to see how we pass the 60% to the patients so we can improve patient affordability, we can lower out-of-pocket costs. in those conversations, you always find johnson & johnson as a willing partner. >> and last question i have to ask. everyone's talking about obesity. you said at your investor day that it's too crowded. is that still your stance? are you planning any changes there? >> obesity is an important area. if we were to find medicines that would improve upon the existing ones in order to find better medicines or medicines that would protect from some of the side effects of the obesity medicines, we'll certainly look into that. we are focused in our areas of immunology, oncology, cardiovascular, neuroscience, tackling the most important diseases, but if we find opportunities in obesity with differentiated product, we'll certainly try to do something there. >> thank you so much, joaquin

duato from johnson & johnson. back to you, carl. >> angelica, thanks to you. that's our angelica peebles at asco today. when we return, we'll get cramer's "mad dash," countdown to the opening bell, lot of names and sectors to get into including calls within transportation. media,e' cer ait wveoved b.

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watch the memes today. gamestop was up 100% earlier this morning. amc, up 22% as keith gill does post about a large although unconfirmed position in gme. we'll t jigem's take and the opening bell in about seven minutes.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. all right, let's get to a "mad dash." of course, we got four minutes before we get started with trading. we got a deal this morning, a couple. this one, $7.2 billion, waste management acquiring a company, $62 a share in cash. that's a nice premium over the closing price. what do you think of the deal itself? >> first of all, i like jim fish very much t, the ceo of waste management. magnificent quarters. but it would be terrific to be able to do an extension, and he's capable of handling medical

waste, which is what stericycle will do. i always think these days, will someone say in the government that this means there will be only one company you can deal with? wm will have to make some sort of deal, saying, no, we're not going to take this or that, because that's how things go now. but good deal? i don't think the stock should be down. i think when people look at it, they say, nice extension. wm might be worried about a possible recession. a lot of their business involves construction debris. >> is that what it is? one of my pet peeves, when you read the definition of what these companies do, oftentimes, you still have no idea, because the way they describe it is, compliance-based solutions that protect people and brands and promote health and well-being and safeguard the environment. >> they're carrying out trash. >> that's stericycle, but they're throwing out dangerous trash. >> dangerous trash. look, that's -- historically, it takes a bit of, obviously, skill

set, but stericycle is the best there is. when you see that price, it's like, wow, best of breed gets best of price. pretty terrific. >> they're talking about net debt to ebitda ratio of about 3.4 times at waste management. >> little higher. >> after the deal. and they do say they continue to have that longstanding commitment to a strong balance sheet, investment grade credit, obviously, they intend to -- and stay within, and they want to achieve a leverage ratio back down to 2.75 to 3. they say that will take about 18 months after the deal. >> they generate a huge amount of cash. they are very consistent. i don't know if we have a chart, but wm has been such a winner during this period, and this is a reminder that you're getting a chance to get in you rarely do. it's rarely down a lot. and it's just a fantastic, fantastic stock for this moment. >> it's not down now either. >> nope. >> well, barely. there it is. >> it's a fantastic -- because every company needs growth because the fed is slowing

growth. this gives them a lease on life, not unlike the way carrier global got a lease on life when they bought the -- >> the heat pump company in europe. >> and honey well bought an acquisition from carrier that closed this weekend that's very good. you're seeing these acquisitions replacing growth. we got to keep in mind that companies are worried. >> did you mention beckton dickinson? >> we haven't -- edwards life sciences wanted to be pure play. this is so up his aisle, i cannot believe how special this thing is for -- by the way, bd has had no growth, and i think that bd is a really well-run company, and edwards lifesciences got is most important heart valve that's in existence right now, and it's all, you know, kind of mushed up in this critical care business. good deal for both. >> goldman puts it on conviction

today. >> both companies are really excellent. becton is live. >> let's get the opening bell at the cnbc realtime exchange. at the big board, it is skechers, footwear brand, along with knicks all-star julius randle. got david's attention. at the nasdaq, it's ford energy doing the honors. we talked about deckers and on and what's happened in footwear in recent quarters, jim. >> nike. a lot of people -- i mean, there was a big push in on on friday. obviously, hoka. skechers is probably one of the best performers of our era. i would put them against gamestop. >> we can come back to it briefly if you want to. it's obviously going to be up a lot. it's a big position from roaring kitty, potentially, what, five million shares and then another -- a bunch of call options expiring on the 21st of june. strike price there, 20 bucks.

65.7 million worth of them. so, i mean, hey, good work if you can get it, i guess. if you're roaring kitty. >> it's a $14 billion company. let's go over that. let's say he sells, does the commission have a case against him? well, if you look at what he's printing, he's not related at all to the company. >> no. >> if he were to say, gamestop just has jensen huang has dropped into a gamestop and made five purchases. >> he's not an insider. he's fnot privy to any material information. he's just telling people what he's doing. if they send the stock up and he decides to sell those options with a strike price of $20, fine. god bless. >> remember ryan cohen did that to -- to bed bath, and the government didn't investigate it. it's about making claims. and it's about fomenting a reason to buy. and i don't think that running -- running a picture his check is anything other than, i bought it. that's not -- you come on our

tv, and you say, look, i bought a lot of gamestop, and if it goes up a lot, i might sell. well, then, it goes up a lot and they sell. i mean, i -- it's legal. we don't like it. but it's legal. >> and then the halo effect today on names like amc? >> well, amc will probably be ready to sell more stock because their balance sheet is still horrible. i know that amc -- unlike -- gamestop's business is not great. amc's business is bad. so, i don't think they can avoid a difficult period of their existence without selling some stocks, converts here. gamestop's now well capitalized, but it doesn't really have a mission, and david, as long as we can download via the microsoft package, gamestop is really obviated and that's why it's such a difficult thing to buy it up here. >> i don't know if roaring kitty has presented a fundamental analysis in terms of why he is so bullish. i just don't know.

i know the first time through was much more about the short position and a feel, maybe, if i could put it that way. >> do you not feel completely ridiculous saying roaring kitty? you seem ridiculous. >> i've gotten over it. >> what's the name of your dog? >> my dog is named scoop. as in, get the scoop. >> roaring kitty, just so everybody's clear, roaring kitty, people are thinking, made a lot of money last go around. >> yes. roaring kitty is a very wealthy gentleman. >> so, therefore, wow, this business is really good. somebody wins. but there is a lottery effect. let's say you bought the stock right here. hold your ears, people who hate me. you should take profits. there's nothing there. >> i know. >> i mean, ryan cohen periodically, what, good humor? the ice cream company? >> he's running this company now. >> i'm saying, he's running the company, but carl, there's still -- gamestop has a very

declining situation. so, i mean, gamestop should be selling more stock so they can raise more capital and become something else. i have suggested many different courses of action for them, and they have not -- but not the theme park, by the way, 800,000 acres in new mexico. but they have been uncommunicative. you don't know what they're going to do with the capital. you do know that they don't have a winning hand. maybe they're going to, you know, drag it out to "grand theft auto" next year. >> on a related note, jim, i thought of you today as citi went double upgrade best buy. they go 67 to $100. a lot of this is about the replacement cycle they say is just starting, and with a.i., you would be looking ostensibly at higher asbs. >> the terrific ceo of best buy is saying, listen, 40% of these pcs are coming to us. if you listen to jensen, and you merge it with her, you realize that jensen's got so much a.i. for the pc, as does arm, that what would happen is that you're a fool if you think that you're

going to continue with your current pc. it's just not going to be able to do the things that this new pc is going to be able to do. by the way, i think we're underestimating what anything -- what robots will do that look like humans with the -- with ruben, who, by the way, was a philadelphia scientist. you just have the possibility of -- before, jensen was saying, any movement we can make. now, he's starting to say, anything we say. >> so, blackwell has not yet shipped. blackwell is in process, i guess, so to speak, and tsmc will start making those chips. >> and then we'll go right into builds of -- they have some -- the partners, the ones that are going to be datacenters. it is -- it will be google cloud. it will be microsoft azure. >> they go to dell, too, who puts them into the servers? and then they make the servers that go into the datacenters. >> this was a double bad day for dell. it wasn't featured. it just wasn't featured. oracle was featured, by the way. dell did not get the kind of

plaudits that you wanted on top of what was a, obviously, difficult quarter. >> yes, there were some questions in terms of the margin there on the high-end servers, on the a.i.-related servers, although the cfo during the call certainly did address them to some extent, just saying that margin will creep in over time. >> i agree with that. that was -- recommends world com today. >> in hock we trust. >> i've been in hock we trust. hock tan. he has made a serious of acquisitions that are really terrific. he does cut costs rather radically. there are people who felt that the vmware part of the deal was not bad. but you know, david, i think that -- i think that everybody is thinking, what happens when we are all able to have our own robot? >> our own robot? >> yeah.

>> well -- >> like i was told to make the bed and do the dishes, and you think i want to do that? >> elon has said at some point there will be a one-on-one ratio of home -- homo sapien to robot. >> i can see a world where i tell a robot, clean the dishes, because i cleaned them the other day, and i'm not particularly good at it, and i would rather have a robot do it. >> whenever i'm doing the dishes, i always wonder about who else is doing their dishes. i always think, you are. >> right here. >> i always wondered, somehow, did steve schwartzman do his own dishes? i don't know why of anybody, but that's a recurring thought. >> there is a therapy in doing the dishes and knowing that you did the dishes. >> that's the edge i have on sw schwartzman. >> substitute in whoever you want, but when i'm sitting there, i don't know what's going on in my house, but they are making eggs that do not come out of the pan. >> only for women -- i didn't mean to be sexist.

my wife is take -- we had scrambled eggs and i knew that was going to be brutal. and she says, give it to me. just give it to me. >> and now you can't -- you just got to sit there. anyhow. >> it reminds me of the piece last week, jim, about the netflix for a.i., a new platform in which you would choose the plot, the characters, the shots. you might be the only person who ever watches that movie. >> i'm watching deep minds on apple, which is the idea of -- people can see different parts of the world. i think that when you get that, you can, like, go into the metaverse and just change where you live and how you feel. you know, kind of just make it better for yourself. >> i only say it because paramount is one of the best s&p gainers, david, today. >> you made paramount. >> paramount went up. >> you lazarus, you. >> again, we can go through some of the deal points here. what's amazing to me to a certain extent is justhow much the special committee, frankly, got the bidder here, skydance,

in partnership with redbird, to come up from their original bid, and jim made that point when he asked me about it. they are now going to be spending $8 billion overall, again, just to go through the numbers, $2 billion to boy out shari redstone and her control stake through national amusements. $4.5 billion is going to go to b holders. it's not quite 50%, but it's awfully close in terms of paying them. and then, they're going to put $1.5 billion on the balance sheet to get this thing on its way, they hope, to investment grade. >> how rich are they? >> larry ellison? do you really need to -- he's a lot of the money here. yeah. >> that's amazing. >> yeah, so -- >> you have to love the guy. did he work with zuckerberg? >> well, david ellison, my understanding, will most likely be ceo. jeff shell, former ceo of nbc universal, will have a very senior role, perhaps as president. jeff zucker is at redbird, associated with them, but is

there a possibility at some point down the road that they would spin or sell cbs and zucker could run that? who knows? that's speculation from some time down the road to come. >> if you take larry ellison money -- well, it's his son. >> ellison -- skydance is controlled by ellison and redbird and kkr is a smaller investor there. obviously, this -- they essentially put it into the new company. they get high four billions in new stock. that's why you end up with, when this is all said and done, and by the way, we don't know how long the regulatory will come. we don't even have a deal announcement yet, let me make it clear. you're going to have roughly 60% of the equity controlled by ellison, skydance, redbird, and roughly a third owned by shareholders who they hope will be signing on to what they believe is an opportunity to get the stock from current price into the high 30s or $40 based on their plan, a lot more of

which we have to hear about. jim, i do want to come back to a couple of things on the activism front. we talked about penn gaming on friday, that activist who got in the shares. and they basically said, sell the company. i'm definitely hearing that there's some stuff around. we'll see if anybody actually comes to the fore with a bid. you know, could there be interest from a boyd? could there be interest from some other names that are out there? >> the properties aren't necessarily bad, okay? >> right. but that espn deal is just -- it's thought of as a just not a good deal. >> well -- >> to be nice about it. >> portnoy deal. >> the portnoy deal has come and gone. >> and it was great for portnoy. the people who run penn entertainment are not considered to be growth operators, and that's, to me, there might be some properties here worth picking out. >> let's keep an eye on penn.

we'll see. but there certainly may, at least, be the probability of some interest there. this activist came through on friday and there certainly are a lot of frustrated shareholders. jim, you know, you asked the j&j ceo about the litigation risk, continued risk from the talc. i wanted to come to another one that's come back for investors, which is zantac's litigation resurfaces. take a look at shares of glaxo-smith klein. a judge ruled on friday that roughly 72,000 litigation cases where gsk is named on zantac could proceed to trial, and that is hitting shares of gsk to the tune of 7%. there was some question as to whether haleon -- remember that -- has any potential liability here. it's not named in any of the cases, and it's notified both gsk and pfizer, because it was

the spin of -- rejects their request for indecimnification. joint venture agreement only covers consumer health care businesses as conducted when the jv was formed in 2018, but i did want to point that out. zantac litigation. >> very tough on dee, who's been -- i mean, just so you know, she's been on the show multiple times, really reinvented the great vaccine company, and this is a huge setback, because it's open-ended. carl, you got 70,000 and maybe a judge rules against glaxo, and everything she's done gets wiped out. really bad. >> finally, for me, we mentioned elon briefly with the robots, but i want to hit tesla again. it's ten days away, the vote on his compensation. we told you about iss late last week saying yes to reincorporating in texas, but reaffirming, no, at least in

their opinion, as a proxy advisory firm, to affirming the compensation plan. they voted -- they advised the same way back in 2018. this is the response. "a deal should be a deal." they say musk was incentivized to deliver the strong performance due to the 100% at risk ceo performance award. they were agreed on by the board and stockholders. he delivered, and it's time for us to deliver. robin denholm and a number of other directors will be making the rounds this week when you start to get the attention of the institutions who will play such a vital role in terms of how this vote goes. whatever the percentage of the outstanding is not including -- i should say, of those voted, and musk are not voting their shares, they got to win that. texas requires 50.1% of the outstandings in favor to get that approval. >> meantime, interesting piece in "the journal" about the rapprochement between musk and jamie dimon after years of strained relations. nice chart book out of jonas

today looking at the auto business in general where inve incentives are climbing. >> elon musk, i know i'm not privy to their discussions, but when elon musk gets together with someone, it often comes up that you should vote for trump. that trump is a -- a hero, elon musk. does come up. >> that comes up? >> it comes up. >> where does that come up? >> in the discussions that elon has had with people. that's not -- that's away from tesla. i'm just saying that when you make common -- break bread with him, it does come up, is my understanding. that's important. there are beginning to see -- >> we're tracking the schwartzmans and the eddalsons and peltzs and ackmans. >> there was a piece this morning about -- on "squawk" about the billionaires who are going for trump.

>> yeah. >> andhow people feel that this is -- >> it will be very interesting to see how that plays, of course, because trump has been very much against renewables in general, evs, you know, he's said about windmills and birds, and yet, we know obviously musk is very much in favor of all those things. >> and they put on this great conference about -- about energy and fossil fuel, and there's a lot of progress. >> at the same time, we know musk -- i mean, they ostracized musk almost immediately in the biden administration when they held a meeting early on about evs and they didn't include elon musk. >> that was unfortunate. >> that may have been a poor decision on their part. >> he's the union president. >> not a union shop. but -- >> well, i mean, look, i think that i still believe, look, a contract's a contract, but if denholm has to make the rounds, do you think clout there? >> do i think what? >> clout. does he have clout?

>> you know, that's why we're focused on it. it will be very interesting, particularly if it does not get approved what the board then chooses to do. you know they have a plan b, and they want to make sure in their -- >> elon? >> yeah, because a lot of stock is owned by individuals. >> he won't do anything unless it's on x now. that's what he's -- a lot of people know. >> speaking of all this, jim, we didn't cover a lot of news from friday. one was just that close. dow's best day of the year. we didn't get to nadella leaving the starbucks board. >> we've got to do that. i have to tell you that that friday rally made me sick, because the market really kind of felt a depth thursday, when salesforce declined. and because of a radical buy program, you're going to have all these computer -- every one of these enterprise software companies is going to come right back down. i just think this is your

chance, you got to go, and i don't want to encourage trading, but that was absurd. on friday. absurd. no one investigates these anymore. they're just -- it's just a shame because they drive people away because they seem like, well, they could do that on the upside. we could do that on the downside. >> it is a busy week in macro. of course, the jobs number on friday, we'll be getting isms, but first some manufacturing pmis, and we'll get to rick santelli. good morning, rick. >> good morning, carl. indeed, s&p global, these are manufacturing pmis. at the top of the hour, we have the ism manufacturing pmis. this one, well, we removed the mid-month read, which was 50.9, and we replace it with 51.3. that's the best since march, a nice improvement. that means every reading this year, this being the fifth is now above 50, breaking the streak of last year, when we had some significant activity under the expansion contraction line. interest rates today, well, you're near unchanged on the

two-year. you're down a handful of basis points on a ten. so, we're making a more inverted yield curve and do remember, last wednesday, we're at 4.46% on the ten. we were at 4.63% because of those iffy auctions. no auctions this week, the attention's been moved away from that. many believe we're going to see more of a propensity for rates to move a bit lower on some of those longer maturities. "squawk on the street" will return after a short break.

we mentioned a lot of m&a today. one that is not happening, boston beard, the direct quote from the san torre spokesman

there is no fact that we are in any negotiations with boston beer. you watch the beer business closely. >> this would have been a great idea if it wasn't for boston beer still not regaining their footing. bud had the infamous misfortune with what happened with bud light. the one my travel trust owns is constellation. i'm surprised they dealt with this. boston beer did buy jim beam and it was a good acquisition. >> keep an eye on that. s&p starting the morning and ayitust 5293. st wh . .

it's time for jim and stop trading. >> i have to tell you i know we've been listening to j&j, but the winner was yaz tra zen ka. they had a couple plenary speeches. they had great work on on cological when it came to breast and lung. people have to start putting yaz zen ka in the same sentence as merck. it's time. they're very good and i think that stock should be much

higher. >> you didn't mention glaxo down -- >> yeah, we did. we hit it. >> i feel bad because he's reinvented the company, but whether you get these lawsuits like j&j with the mesothelioma you find you're distracted, distracted. >> important conference week on a number of fronts. >> oh, my gosh. health care and more. >> we'll see you tonight. the ceos of pfizer and hilton coming up as we are just a handful of points away from 5300. stay with us. ♪ in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there.

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good monday 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. take a look at stocks after last week's losses. we're rebounding a little bit here at the s&p up 0.4%. the dow is under a little more pressure, and that's thanks in

part to home depot, dragging 25 points off, travelers, chevron, goldman sachs, but there is some nice performance in tech this morning thanks to nvidia and information technologies at the top of the s&p. energy, materials, utilities and financials are lagging today. it's why the nasdaq is up 0.75%. tech is strong. take a look at treasuries as we start out the week. it's a quiet period for the federal reserve until next week's meeting and a bid for bonds which continues since last week. the 10-year yield 4.4%. backing off the 4.5% and the 2-year yield 4.8%. here are some three movers we're watching. got to start with gamestop. shares surging again after the trader known as roaring kitty posted a screen shot of a large position in the stock. more details on that in just a moment. spotify increasing prices across its premium plans, starting in july, their individual subscription will cost $1 more a

month, $11.99. the duo plan $2 more and the family plan $3 more. jumping to nearly $20 a month. not good news for you, david. >> no. >> watch the chips as well today. amd and nvidia unveiling new ai chips at the computex conference in taiwan over the weekend. we'll break down the headlines and how to trade the stocks which are higher later this hour. >> to sara's point, bonds like the ism number. to rick santelli. >> yes, carl. construction spending for the month of april, we are expecting a positive number, but instead up 0.2%, we're getting down 0.1% which means we haven't had a positive number this year. the last positive number was december when it was up nearly 1%. on the ism manufacturing for may, and these, of course, are following the s&p global we're expecting a number below 50, and it remains below 50.

manufacturing at 48.7. that's the weakest since february of this year. if we look at prices paid, last month at 60.9. it was the highest in nearly two years. it has backed off a bit from 60.9 down to 57. 57 would be the weakest since march of this year. and, of course, we haven't been below 50 in this since december of last year. prices paid, well, less inflation may be a good thing. on the new orders, 45.4. the weakest since may of '23. and finally, the ism employment that's particularly important because this week we have adp on wednesday and jobs report on friday, this number is above 50, 51.1. the best since august of '22. you see interest rates moving down a bit there em. i'm sure that's probably a reaction to prices paid. we'll monitor the long end. right now we're down nearly 9

basis points in a 10-year note and about half that in a two-year note. sara, back to you. >> and a big drop in the dollar index, the dxy, on that data as well. thank you. rick santelli. rick mentioned the highlights of the week ahead, which is we're going to get heavy on the jobs data which is always important for investors and for the fed. we'll get the jolts report, the job openings, which we another they're paying close attention to as a sign of tightness in the labor market, the adp private sector read and the jobs report on friday. consumer earnings we'll be paying attention to, big week for central banks. the ecb set to lower interest rates for the first time since 2019 on thursday. question is, how they frame what to do next because they've made a lot of progress on inflation, but there's some signs that it's sticky. last week's number was a little bit hotter than expected. >> do we think that's played out in the currency markets. >> it's priced in. >> like a 9 % chance that their -- 97% chance they're

going to cut rates. >> we could see further euro weakness if ecb president christine lagarde signals that more cuts are comingand they're thinking about when the next one is coming. remember, she telegraphed this june cut pretty clearly, so if she gives more sort of transparent signs about the next one, for sure you could see more weakness in those bond yields in europe and in the euro/dollar. some overnight news from abroad to mention, the china -- one of the china private sector manufacturing numbers came in at the best level in about two years and i don't want to make too much of this because the official china manufacturing number actually showed a contraction for may, but i will note it because the market moved off it. it was the best number since 2022. it has, though, consistently outperformed the official china manufacturing number for the last few months. again, maybe could point to stabilization in terms of external demand for chinese

goods. china needs the unless to go up if it wants to mention the growth target. we have exit polls over the weekend showing modi looks set to win a third term, and that's considered by the markets. india versus china chart in the last few years gives you a picture of how much money has flowed into india out of china as an alternative, and a lot of articles this morning, reuters mentioning that modi's next term will be dominated with more measures to make india the manufacturing hub, the alternative to china. market rose on the exit polls. we'll get the official numbers this week on tuesday. >> meanwhile, sheinbaum winning in mexico, 60%. first female leader there in the country's 200 years and in the india vote, like we see the number of poll workers who died because of heat stress. >> it was a long -- >> dozens of people. >> election started in april and

they had a terrible heat wave in the middle of it. it's almost -- it's hard for us to imagine an election going that long. >> those temperatures are also hard to imagine, 110, 120. unbelievable. i mean, climate, obviously, continues to be a real concern particularly there. >> yeah. as far as the u.s. is concerned, one notable chart, you know, rick reported some of the weakness in manufacturing, there's notable weakness in the consumer too and it's hard to ignore and pantheon macro putt p -- put out a note over the weekend showing what's happening on the blue line, real consumption expenditures. it's not a disaster, it's not falling apart, but as you can see, the orange line sort of smooths it out with the annualized numbers. it's weakening and their bet is you should bet on consumer spending undershooting in the coming months because they say consumer -- first of all the savings rate is low, 3.6%. they've dipped into their

savings. excess cash from pandemic has dwindled and wage growth isn't rising to the extent. the income growth after taxes for the first three months of this year was something like 1%. last year at that time, it was 9%. so that's what fuels consumer spending and it's coming down. they say if we see further weakness in the jobs numbers, that only will add to downside risk because the consumer is weakening now, with what has been a robust jobs report. >> he's been saying this for a while and morgan stanley on friday, said april's data has unleashed what they think is going to be a trend of disinflationary data and still with three cuts for the year beginning in september. >> three cuts, the market is barely up 1 now coming into december. the jobs numbers this week will be important because i think the fed would like to see more pronounced weakness in the labor department before being confident that they can start raising -- cutting interest rates this year. yes, the most important is

inflation and that they continue to see the disinflation, but weakness in jobs will get them there quicker. >> moving on the drama we've been following for months involving the potential sale of paramount is at its end, and highly, highly likely to end with the transaction in which the control of paramount is sold to a team of skydance run by david ellison, son of larry ellison, and the private equity firm redbird. we are still awaiting the approval of the company's control shareholder sharery redstone for a deal that has been reached by the special committee representing the b holders in this. this is the deal they essentially have reached. first part of that is separate because redstone and redbird have been negotiating for some time, but they'd already agreed more or less. we'll pay you $2 billion to take control of national amusements

which holds the control shares and 7% of the vote for paramount. here's the deal that is -- that has been reached and is being presented overall to shari redstone. skydance is going to tender at the time of close of all of this for what is not quite 50% of the shares, that means if you were a b holder when this deal closes between now and whenever that is, you're going to be able to say i'll take half of my exposure off the table for what would be $15 a share. in addition, the skydance-redbird group is going to infuse a $1.5 billion on paramount's balance sheet and what you end up with at the close, in other words you bring skydance in, and by the way the value of skydance as part of the transaction has been brought down to i'm told the low -- i'm sorry the high $4 billion. it had been a $5 billion number. it's a bit below that. and when you close, you end up with essentially skydance and redbird and whoever else they

may bring in, if there are other partners, opening 6 7% of the outstanding shares in addition to having the control vote shares as well. so really you have a stub of a public equity and they are going to take control and implement the plan as put in place by david ellison and jeff shell to try to vastly increase the overall value of the company. that is why they're willing to spend, get this, $8 billion in cash. that's what the number is. that had not been the number earlier in the negotiations. that's where it is now. let me break it down for you. $2 billion to buy national amusements and $4.5 billion for the roughly 50% of paramount shares. you give the opportunity to exit to a lot of shareholders. because they'll tender for almost, not quite 50%. and then you put in $1.5 billion. that's $8 billion in new money coming in that will be provided by both larry ellison and redbird and their fund holders, obviously, those who they go to

raise additional funds for the transaction. and again, it could take quite some time to close. so there's a lot at risk here when you agree to a deal at this price because we know how challenged this business is. you've got a three-headed office of the ceo right now at a company that is, you know, i think the charter renegotiation, there's so many different things and headwinds. there's the leadership team at paramount. they're still new. they're not going to be around long. then i've gotten this question on twitter, what about the sony deal and go it alone? go it alone they felt, as i understand it, has been explained, there was just not a path that really they felt could create significant value in part because access to cash getting the company to invest in grade, which is a plan, of course, of skydance and redbird, with the addition of that $1.5 billion will help, simply no path at least that they felt like -- that was the prevailing feeling

amongst those who comprised the special committee. and then the sony, you know, that was a number, but it was a number in a letter with apollo and it was subject to due diligence and they took weeks to sign an nda, and it never was real. i reported a few weeks ago, sony was rethinking and those who say why didn't they take what would have been this big number from sony, i never got there. one thing to write a letter and say we have interest at this level, it's another thing to make said bid and that didn't happen. here we are. it could still be a few more days before we actually get that press release. but it does appear very close. they're planning an annual meeting tomorrow still at paramount. i'm not sure what they're going to say if they don't have something to say about this deal. one final point, no vote here. it's not going to be a majority or minority vote. that was the work of the special committee. that's why they spent all this time seemingly doing a good job getting one bidder to come up a

lot. >> that's a big deal, what you just reported. it's done. >> big deal. yes. it would appear to be done. >> unless shari redstone said, i don't want to do this, which i can't imagine, but it is paramount so who knows. >> meantime, watching the meme trades today. gamestop was up 100% premarket. it's come off the premarket boil but still up almost 30. to kate rooney with that story. good morning, kate. >> reporter: good morning. no fundamental news really driving this one. latest gamestop rally led and sparked by an online post from the account of keith gill, remember that name, he also goes by roaring kitty and famously led this army of retail traders into the gamestop short squeeze a few years ago. he hadn't really posted since then, but his account, his roaring kitty account, has been back at it tweeting and ginning up excitement around gamestop. see it reflected in the price, despite never mentioning the stock by name. until now there hadn't been

action in his account on reddit, but that changed this weekend with a screen shot of a $116 million position in gamestop, it showed 120,000 call option, strike price of $20. those shares were bought around $5. the stock trading above 29%. the post, it was not on the famous wall street vets forum on reddit. that group known for momentum trading and joking about meme stocks. the moderators admonishing keith gill writing three years ago a bunch of people, as they put it, flooded here to be part of a trade because, quote, we were all stuck inside and had free money and it was funny, as they put it. many people ended up holding the ball and they said that's not what we're about and they want roaring kitty to take the gamestop sheen in begans elsewhere. good luck but your whole schtick and disappearance really, quote, f'ed retail up and it would be nice if you didn't leave them on

a cliffhanger. maybe some warring factions on reddit. >> what is the reverse uno card. that's what he posted, right? >> yeah. >> the company tweet was a reverse. we could spend all show analyzing this one. it's the same thing. it's sort of if you looked at it, it has nothing to do with gamestop. these are plooems, the same thing his first post was a video game player leaning forward in the chair. i won't attempt to take a stab at it. anything he posts is seen as a sign he's taking positions and it is all translating into gamestop. you're seeing it in other meme stocks, amc getting the same rally. never mentioned gamestop which also from a regulator's perspective, interesting. if there's any sort of liability here for market manipulation. unchartered territory here. >> yeah. >> thanks, kate rooney, as we continue to watch the surge in gamestop. as we head to break our road map for the rest of the hour. the ceo of hilton live at post

nine on the company's growth strategy and the strength of the consumer this summer season. plus, nvidia and amd both unveiling new ai products over the weekend. wear going to talk with one of the street's top analysts on how to play those names. and we'll take you back out to the world's biggest cancer research conference in chicago with pfizer's chief al bourla as "squawk on the street" continues. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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

the nasdaq is coming off its best month since '23. tech did lead the rally in may. the broader tech sector seeing its best month since 2023. with more on what comes next is our markets commentator mike santoli, having digested this ism here. >> the market shows you it's kind of sensitive to the slow down evidence at this point. you know, my analogy recently has been, we're walking two dogs at once on a short leash. it's inflation and growth are their names. it's fine if they're kind of in the expected zone and they kind of keep trudging slowly in the direction we expect when we stray from there the market gets agitated below the surface. we saw that as yields migrated higher in the last couple weeks of may. what that did mostly was meant the majority of stocks weakened but the index has more or less hung in there because of the divergence with nvidia. how much of a deceleration in the economy is acceptable, and can we essentially still think this is just noise around the edges, it's going to take the

economy off the boil, we get an easier fed and everything works out fine? the timing issues here are interesting. >> what did you make of bofa saying 125 k is the threshold for a sahm rule trigger on friday? >> it's probably right. you don't know how that translates into unemployment rate, but it just -- i think accentuates we're somewhere near the moment where weaker data is not necessarily going to be embraced. i think at this point. again, we've been in this two-month period of chopping sideways. most stocks churning below the surface and it's kind of a suspended animation, wait and see. i think the market has hung in there okay, but 21 times earnings, like what's the next impetus to get more excited. >> did you see the data from goldman sachs prime book showing that tech stocks saw their largest net selling in 11 weeks, and it was, obviously, most pronounced in software. >> yes. >> which made up more than 60% of the notional selling in the sector. the salesforce numbers.

i mean what does a rethink of the software trade mean for the overall market? >> i mean, they're the first movers, so i feel like they were very over exposed in terms of the secular tech stories. they're going to be the first to lighten up. i think we saw it in the prices last week. i don't know if that's an ongoing thing. besides seeing salesforce get hit for a 20% drop in a day, so i think it does show, sara, though that there's a scarcity of conviction in this market and that's why the thing you believe most is nvidia and not a lot else around it. >> semi exposure up, software down. thank you. mike santoli. still ahead, the pulse of the consumer with the ceo of hilton. we'll get his read from the ground and more on the busy summer travel season ahead. stay with us. with the dow down 31 but the s&p up 0.3%. car, take me home. (♪♪)

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welcome back to "squawk on the street." mixed picture when it comes to the strength of the consumer as concerns grow that higher prices could weigh on summer travel demand. here to discuss in a cnbc exclusive is hilton ceo christopher nassetta. welcome good to have you.

>> thanks for having me. >> how does it look for summer travel? >> i think summer travel looks pretty good, all things considered. in our industry, demand is remaining pretty resilient across the broad sectors of meetings and events, business travel continues to rebound. lee sure travel, while normalizing from very high levels coming out of covid is still reasonably strong. when we look at the summer probably not the kind of growth year over year we had last summer, last couple summers, but still positive growth year over year, and so when we look at the next like 60 days, they're some of the highest levels of bookings we've seen. >> does it differ by -- we hear commentary about the low-income consumer more stretched because of inflation. does it differ by category? >> it does broadly. i would say we expect to see growth in the summer season across all categories, but clearly, you know, if you look at and segment it, the lower chain scales will show slower growth than the upper -- mid and

upper chain scales. >> it does raise a question about where the growth is coming from in this industry. you have news. >> we do. >> what you're investing in. >> we've been making some big moves at the high end of the space. we, obviously, have, you know, 24 brands, so we cover everything from spark, the premium economy, up through waldorf astoria. at the high end. we believe, as has been happening in the lifestyle and luxury space, there's a lot of growth and lot of opportunity, so we just announced that we're acquiring the first brands that we've acquired in the 17 years i've been running the company and buying the graduate brand, k nomad brand. important partnerships with small luxury hotels of the world. in the experience space with auto, camp. we think we'll double our presence in lifestyle from about

350 hotels over the next three or four years to 700 hotels. if all goes well by the end of this year we will be able to be four or five times the size in the luxury space as a result of adding to waldorf-astoria, as well -- >> going after marriotthere? >> not necessarily. >> the leader in luxury? >> they are bigger in luxury. by the end of this year in terms of the dots on the map, we will be as big as anybody. in the lifestyle space, we think there's huge growth opportunities and we think our existing brands, tapestry, canopy, tempo, now with nomad, and graduate, give us a whole bunch of great shots on goal in different subsegments of lifestyle. >> can you explain what lifestyle is for people who may not understand the differentiation between the brands? >> i would say there's an element of lifestyle in everything we do. the truth is there's an element

of lifestyle in the hampton brand. so broadly, i would say lifestyle is modern design, modern functionality. a little bit higher energy approach to food and beverage, and i say to our teams all the time, we have 24 brands. there's an element of lifestyle because if you believe what i just said about the definition of lifestyle, modern design, modern technology, modern approach, high energy approach to food and beverage, really customers want that across a broad spectrum. there are brands i named them, within our category, you know, within our 24, that probably index a little bit heavier, more design forward, a little bit more, you know, high energy on the food and beverage, a little bit more forward on technology and those go into the lifestyle groupings for us. there's been huge growth opportunities for a long time, and we've been present. we have 350 hotels, so we just think we could have 700 and then

1,000 and 1500. we think it's a tremendous growth opportunity. >> "times" has a piece on pricing strategy in general given some of the consumption numbers we got last week. and the idea is, yeah, you can price a little bit more, but it's going to be more surgical and you will start folding in promotions. does that playbook -- >> that's not really what we're seeing in our industry at the moment. think about it, our industry is sort of three broad segments. meetings and events, business travel and leisure travel. i would say maybe in the leisure side there's more of an element of that, but we're still recovering in meetings and events. we're still recovering in business travel. there's only so much availability. i mean the bulk of that is occurring monday through thursday. hotels are full. and so the reality is, it's a supply and demand thing, right. not a lot of new supply hotels coming and there's a fair amount of demand and growing demand, particularly in business travel, meetings and events, and so the laws of economics are alive and well. that allows us --

>> winner take all. >> that allows us to have pretty good pricing pressure and, so i expect when we're deal with the year, both of the u.s. and overseas, we will see increases in pricing. we won't see them probably at the pace that we saw them over the last couple years. not, you know, in keeping with what we're seeing more broadly with inflation and the work that the fed is doing and central banks are doing. it's, you know, it's a really exciting time for us. this year we're going to grow more than we ever have in our history. we have 472,000 rooms in our pipeline. one in five rooms in the world has a hilton brand on it that's under construction. we will open two hotels a day in 2024. so we're busy. and we have new brands, you know, new fun partnerships with -- that we're going to offer our customers, more luxury, more experiential, more lifestyle and more of the core of what we do.

it's a really interesting and exciting time, notwithstanding the broader environment, carl, to your point, is a little bit tricky right now for sure. >> it's a bullish update, chris. thank you for joining us. >> thanks for having me. >> good to have you, christopher nassetta, the ceo of hilton. lot more consumer and hospitality in the next hour. we'll check in with the ceo of intercontinental hotels, one of the newer hotel executives and jonathan tisch of loews hotel. the nyu panel is going on, and i'm moderating. the check-in on cnbc. a news update with our contessa brewer. >> hi there, carl. jury selection under way this morning in hunter biden's trial on three federal gun charges. the president's son faces as many as 25 years in prison if he's found guilty of lying on forms about his drug use to obtain a firearm in 2018. since the charges are federal the president would have the power to pardon or commute his

sentence if he's convicted. the trial is expected to rough lastly two weeks. the man who led the u.s. through the covid-19 pandemic is testifying on capitol hill this morning. the house subcommittee on the coronavirus pandemic is grilling dr. anthony fauci about the origins of the disease and alleged misconduct under his leadership in the national institute of allergy and infectious diseases. mexico elected its first female president according to projections from this weekend's vote, about 60% of voters cast a ballot. claudia sheinbaum the former mayor of mexico city and physicist and climate scientist and will become the country's first president of jewish heritage. her six-year term begins october 1st. sara. >> okay. thank you, contessa brewer. after the break, a battle of the chip giants as nvidia and amd roll out new generations of ai chips with aggressive timelines. we'll fill you in, next.

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get connected on the day of your move with the xfinity app. can i sleep over at your new place? can katie sleep over tonight? sure, honey! this generation is so dramatic! move with xfinity. welcome back to "squawk on the street." let's turn to the chips, the ongoing competition heating up as nvidia and amd both unveil new ai products just over the weekend. joining us now to discuss, wall street's top chips analyst stacy razkin of bernstein has an outperform on nvidia, price target of 1300, market perform on amd, price target 140. good to see you. >> good to be here. >> they're moving now at a clip at nvidia, i'm curious to get your thoughts given how you've watched their product cycles through the year, each year now or more, we're going to get an introduction of a new chip or the idea of a new chip before the existing chip we heard about has hit the market? >> well, so that's right.

we've known for a while that nvidia is moving to an annual product cadence. they used to be on a two to three-year cycle. they are moving to an annual cycle. now we've known that, and they've now given us a tease of some of the products that are coming year over year on that full full-year cycle. we've just really learned details about the current next generation, which is called blackwell. and that hasn't even really started shipping yet. it's the second half of this year. we have a tease on what's coming next. they are clearly moving to an annual. >> is it enough to make you believe they will continue to maintain their unrivaled position? >> well, so it's funny, you look at amd. so amd is now apparently on an annual cadence as well, right. i would argue given the differences in scale, it's going to be harder for amd to do that.

i mean, but they probably have no choice, given the acceleration of the road maps that nvidia has done. and again, you can look at some of the announcements amd made. a new one coming out, the one end of this year called the mi 325, basically a version of their current mi 300 but it has more high bandwidth memory. that may put it a little closer to nvidia, too many code names here, closer to the h200 but i don't think it will be competitive with blackwell which what is nvidia will be launching around the same time. we'll have to see how amd can compare. it's going to be a tough thing for amd to keep up. they're going to have to try and do their best doing that. >> for our viewers point of view, can you give a sense as to the jump in terms of computing power and anything else that you think is an important metric from the h200 to blackwell to whatever this -- to rubin? how big of jump ss are we talki

about in terms of technology? >> h 100 and h200 are versions of nvidia's architecture called hopper. blackwell the next version. it's from call it 3 to 30 x depending on what you're doing with it, the jump from hopper to blackwell. i don't know what blackwell ultra, rubin or anything will do, in terms of actual numbers at this point, but they will clearly be more with every generation nvidia has been pretty good at ramping up the performance materially. with amd, the same thing. i don't know exactly what -- i think they said the mi 350, which is what they have coming in 2025, it was supposed to be 35 times better performance than the mi 300. you don't exactly know what that means in practice. those are sort of marketing numbers. the performance will be better presumably and i guess the mi 400 in '26 will be better. how they will compare, we don't know yet. but the gap is still reasonably wide right now, and, you know,

again nvidia has probably more resources to put against this. amd -- they're going to do their bestp. i'm not saying they're not doing well for what they are, but it is a tough race to fight. >> are you fielding more client interest from those who might have lost heart with software? >> maybe a little bit. your semis and software have die verbaled. i'm not a software analyst, so i'll put the rationale for that aside. absolutely, i've been getting more interesting in semis, both on the secular around amd, around ai and these trends, as well as the purely cyclicals as well. i'm in a fortunate position as an analyst covering semiconductors. there's always something to talk about. i would say the interest levels recently have been higher than frankly i've ever seen in my career and i've been doing this

quite a while. >> i have to get you to weigh in on texas instruments. last week i reported on a $2.5 billion from elliott, espousing this idea of a dynamic capex spending for lack of a better term. you had the ceo at your conference last week. i know he wouldn't address it head-on, but give me your take on the elliott point of view, and what you heard from the company? >> i mean, he kind of did address it, right. he said we haven't engaged. we're looking forward to engaging. they'll talk to him. i don't think what elliott is looking for and what t.i. are doing are all that different. t.i. has kind of said when we get to '27, when we're through this large slug of initial capex, we will be dynamic in '27. they've got particular growth targets and long-term capex trends based on those growth targets. 2027 and beyond, if those growth targets are not where they think they are, they will bring that down and they will spend the $5 billion a year at least through

2026. >> you downgraded them last summer, you said 15 years is a long time? >> i mean, it is, right. t.i. is suggesting we won't have to wait that long to see the benefits. we'll see. i'm not knocking t.i. i love the company. i love the management team. i'm not going to argue with what they're doing. i think that they will be dynamic once we're through this slug. i suspect they will continue to spend the $5 billion a year through '26. there are other reasons they're doing that. they're not stupid, right. ultimately if the median term growth target once we get there don't support the need for like higher capex over the longer term they'll dial it back. i don't think they have a hugely different point of view on this than elliott does. elliott seems to be arguing for that to happen maybe a little bit earlier. >> we'll keep an eye on it and see if it gets any traction. appreciate it as always. >> my pleasure. >> news alert for you. the nyse says it is investigating a technical issue

regarding limit up, limit down bands today. the apparent glitch did cause the a class shares of warren buffet's berkshire hathaway to be down. shares were halted. new scale power had seen a dramatic fall. we'll keep you updated on that situation. >> weird one. as we head to break, shares of pfizer, a big under performer on the year, but a new cancer drug be the key to the turnaround? ceo albert bourla joins us live nc riscuss live from the biggest caeresearch conference next. stay with us.

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put your business online in minutes with the power of ai. biggest gainers on the s&p to start june, auto desk is up there. the software company for architect not going to have to restate its financial earnings, giving the stock relief. paramount number two after david faber with the scoop that they reached a tentative deal for skydance to acquire paramount.

the airlines. it looks like a good start to the markets for the month of june led by tech. after the break don't miss the ceo of pfizer veli from the conference in chicago breaking down his company's pipeline. back in two minutes. that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow!

welcome back to "squawk on the street." pfizer with promising long-term results with a drug to treat rare lung cancer. our angelica peebles is live on the scene with a special guest. hi again, angelica. >> hi, carl. nice to be back with you. i'm here today with pfizer ceo albert bourla. thank you for joining us. i want to start with this lung cancer data you're presenting this weekend. some really impressive results that that drug cut the risk of disease progression or death by 81% over five years in this rare form of cancer. how might that change with these results? >> i think what really the

results are saying that the life of the patient, that we're fortunate to have this lung cancer in their life, it's changing dramatically. we are talking about five years after introduction having reached medium progressive rate of survival. which means way more people five years later they haven't even progressed. this is metastatic lung cancer. so, it is lung cancer, but if it metastasizes to your brain or liver. to tell you how impressed i am with this data, one patient which i had the honor to meet myself, that he is in this state us 2015, nine years ago, with the brain tumor metastasize. he hasn't progressed. nine years later, cancer-free. >> wow. how might this drug change? will it be a bigger revenue

driver for you with these new results? >> clearly. this is how we can make revenues when we make a difference in patients' lives. with such profound data on this drug, clearly the -- we expect that the sales of this medicine will go very high. >> and you're making this really big bet on cancer, especially coming out of the pandemic. it seems like this is what you're telling people, this is what you can expect from pfizer going forward. why are you making such a big bet here? what do you need to do to make sure it pays off? >> cancer is not the only unsolved medical problem but clearly the one that scares more people. everybody is affected by cancer. not necessarily as a patient, although one in three people will be diagnosed with cancer in their lifetime. but everybody, all three, will be affected as brother, sister, and unfortunately sometimes as mother and father. so, the need is very high.

on the other hand, science is really the cusp of a significant solution. for cancer, we know a lot of the biology of the disease. the question is for a company like us, can we make a difference? by bringing, for example, in the acquisition, the aid of technology, the scale that pfizer can bring, we can accelerate things. we can cut -- we can make things way, way more impactful and faster. we just spoke about the lung cancer data, but another very impressive result was from what we acquired data for lymphoma. 74% improvement and status ongoing. we are very proud of what we were able to do and offer the world with covid. we want to do it once more. we think our next big contribution to the world, health, will be in cancer.

>> will that be enough to get your stock price back to where it was? >> i think it will be enough for everything to be positive for pfizer. the stock price was very disappointing for us the last year, but very understandable. it's already in a good way to recover. and i think we're just scratching the surface. i think plenty of new positive things will come to our shareholders in the next months, but this one or like the results we have in the first quarter and the second quarter is upcoming. so, i think we will see steady growth. investors want to see if we can deliver. this is a year of execution for pfizer. and everybody should remember that this company doesn't have months being able to execute when it focuses its resources on something. we've proven it once with covid, twice with covid when we did

plaxovid. >> you said you'll have news possibility midyear about the obesity pill. it's june. when request we expect an update and what do you have to share? >> of course. we keep receiving data on this drug and we keep evaluating. i don't have anything to add because, of course, this is very material information. we need to be really ready to talk. you know, within this time, approximately middle of the year, we should be able to get next update to the people. >> no update right now? >> no update right now. >> thank you, albert bourla. we appreciate it. talk to you soon. back to you. >> thank you, angelica with pfizer ceo albert bourla. pfizer shares are up some 2%. merck also having a good day and a good year so far as well. important to point out, up some 17-plus percent. there's a look at pfizer, reversing what had been some losses. we talk about the 20-year chart, which does not look good.

as i said, though, merck up 17% plus for the year and having a nice year as well. any number of reactions. bristol-myers up 3% to many of the presentations taking place at that conference where angelica brought those interviews from. a lot more live market coverage for you right after this. at pgim, finding opportunity in fixed income today, helps secure tomorrow. our time-tested fixed income suite, backed by over 145 years of risk experience,

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good monday morning. i'm "money movers." carl quintanilla with sara eisen live at post 9 of the new york stock exchange. today alli mccartney on why rich valuations should hold you back from betting on tech. and co-owner of the new york giants, jonathan tisch. wells fargo names its best stock to own in software and cyber security. we'll get the name and the analyst trade ahead. for the time being, lost some of the opening gains. dow is down almost 200. back below 5300, 5266, as some data today, mike santoli, senior markets commentator, did imply