continue to recover. back to becky. >> all right, steve, thank you very much. we continue to watch thi. ♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla withimid faber at post 9 of the new york stock exchange. coming off all time highs for s&p, nasdaq, futures a bit mixed as the ecb delivers that long awaited cut in rates since 2016. the ten year bill 4.3. the big tech ai boom, nvidia the second most valuable company, and rallying ahead of the open. >> plus ai dominance is under

s scrutiny. the doj open antitrust inquiries of microsoft, openai and nvidia. we have lulu shares surging despite weak second quarter -- a weak second quarter outlook. five below seeing lower consumer sending levels. >> let's begin with nvidia joining the $3 trillion valuation club, surpassing a apple to become the second most valuable company in the united states behind microsoft. jim put all ofpective last nigh money." >> we've got some huge winners in our time, steve jobs, the iphone, bill gates, windows, jeff bezos, amazon, now meta. nothing like jensen. nothing at all. bottom line, thank you, jensen, for changing the world and for you skeptics, take a look at today's biggest gainers. they are all -- they're just spinning pins. scattered this way and that. because nvidia's speed ball went

right down the middle. strike! >> jim, i love the fact that ten years ago apple was 53 times nvidia's market cap. >> look, this is a phenomena and i think there is a lot of people who are skeptical, which one of the reasons why this week i think was motivated by the split that comes from friday more than it was from what jensen has been saying. c computex was an or not meeting. when a ceo on, tech or nontech, they can't seem to nod. you will get these situations where -- like last night, you know, you get the snowflake one, they have to mention it three, four times that they have involved. hpe was ten times with four direct mentions to jensen. now, david, you could argue these are anecdotal but when you put them all together it feels like what has happened here is you need him, he is ai, you need

ai, there is nowhere else to go. so their sales -- as expressed by the percentage of a $6 billion center that you use, data center -- maybe 75%, 80%. >> the accretion of value is incredible as you pointed it out at the top of "mad money" as we have over and over again. there are a number of investors that entered this year fully believing in the thesis and saying nvidia's run has to end, they would be wrong. the company eclipsing the value of apple. it's truly staggering. i can remember when we were hearing a trillion dollars valuation for nvidia which feels like months ago. i don't know exactly when that was. >> that run we had when we were at the ceo council in santa barbara where he had the fabled $5 billion miss as he called t miss to the upside. i think that was the beginning of recognition for people who

were not that close to it. >> right. >> that's what happened -- >> i remember. >> yeah, that he is now on a path. when i say on the path -- >> what i want to know is when does this all start to come to an end? when do investors truly start to wonder whether their monopoly if you want to call it that or their lock, their stranglehold on being the chip you need, the gp you need, when does that start to end? there are any number of smaller companies made up of very, very capable chip designers i know that are being funded. you have the amazons of the world and the metas and i could go on trying to design their own. >> very much so because it's a choke hold. >> at some point this competitive dynamic will change, will it not, jim? >> well, i think that the issue is that you've got someone who is so far ahead in the training side. see, these are all inference that you have competitors, you don't have training. even amd is closer in terms of

training. carl, we had this training, you have to remember, you're feeding these things, you're feeding these basically super computers everything they need to know and then you're inferring. it's the -- it's the darn teaching. it's the core of knowledge that are in these that matter. >> to david's question i'm thinking back to a couple years ago when -- take tesla. we would have adam jonas on, he would call tesla the white rabbit on the racetrack everybody was chasing. it wasn't that tesla changed it was that the market for evs changed. >> and the competition from the chinese, for example. >> look, we have cpus which by the way resume huss is putting out numbers saying it's gigantic how many we need, there are cpus in everything. >> yes. >> but you would have to have something that was not cpu or gpu. something that was -- >> another iteration. the next -- >> different material, material that's cheaper than silicon

where you could put 2 billion transistors on, something that uses cadence to be able to have a software design that's what nvidia uses now that then goes to taiwan semi and taiwan semi or someone better than taiwan semi and i can't imagine who that would be makes it so it obviates nvidia and taiwan semi. jensen really believed in the gpu and the most important moment was when andy grow projected the gpu for the cpu. >> rejected? >> rejected. that's a gaming chip. >> many, many years ago. is that really grove who did that? >> it was grove. >> not some of the other leaders there who made some real missteps at intel along the way? >> no, it was grove and the reason i mention it is because that was the moment when you went on a course of where you were either going to go for all around purpose computing or speed computing and grove felt

speed computing was small-minded, and general purpose would mean they would be everywhere. well, they never really cracked the cellphone, we know that. >> the decision not to partner with apple obviously at intel was very important. >> and then the cpu, carl, what happened is that general purpose turned out to be not as good as speed. speed, when you mix all these chips up, you mix -- that's when you get the accelerated computing. remember it's two things that jensen always talks about from nvidia, it's the accelerated computing and jen testify ai and you need both if you are going to challenge t you need to have better generative ai, which means you have to have much better database before it ever gets to the customer, the training, and then you need something that's much pastor. everybody is based on cpu except for lisa suh from amd. >> apple, highest price of the

year, green for eight straight days. although, big people in the journal today about how they fell behind in ai. >> when you fall behind you can catch up and i think that when we look at the cellphone, it's a consumer product and when you listen to jensen, jensen -- this is why we don't know -- >> well, we know a lot more than we did a year ago. >> yes. >> his rock star status. >> you and i knew, you guys knew, because i kept going nuts about it. >> you did, you did, for a long time. i mean, the meeting coming up from apple is not an unimportant one. >> no. >> obviously we referenced this journal story talking about how they did not take the lead, how steve jobs have been pushing a different version of siri sometime back, but when you have a billion -- what do they have a billion four, i don't know how many devices in people's hands you can change the playing field quickly if you want to. >> i get upset when i hear that

they are behind because if they were behind then we would all be with samsung phones but we come in, oh, these guys are behind, i'm throwing this away, give me a nokia? i mean, it just doesn't work like that. and these articles, they always say the same thing which is that apple is falling behind. you go with tim cook, ceo, and tim cook would say we don't want to be first, we want to be best. >> second strike. >> right. i remember when they introduced the morning show, the morning show, and they said, listen, we're going to be big in tv. and i'm like you guys are so late. and he said, no, we want to be great. and i think they are. how many times now do you, again, anecdotal, i'm sorry, do you say is that a net bite? no, that's apple plus. >> "dark matter" i felt like that was ruben and the next generation of the jensen chip. no. i mean, apple plus is real. >> okay. >> don't say okay. >> i have enjoyed a couple of shows --

>> and dan holm. >> of all the things you would go to to try to show apple's ability i don't think it would be that. it is a rounding error on a rounding error for the company. it means nothing. >> it's a simile. what i'm saying is they don't like to be first, they like to be best. i should have said siri, okay? i should have said emojis, damn emojis. >> yes, you should have. >> this won't even go through. i have this important thing it won't go through. is that ai? it says try again every time i press. >> we are going to talk more apple and nvidia in a little bit. >> okay. >> before that our average is confirming reports this morning that the doj and ftc have reached a deal to open antitrust inquiries of microsoft, openai and nvidia, treasury weighing in on risks as well. >> the treasury department is taking its first step toward

regulating ai in the financial services industry at the same time janet yellen is warning about significant risks by the use of ai by financial companies. yellen is set to speak about vulnerabilities using ai in finance. too much concentration among key players and she will highlight how, quote, insufficient or faulty data could lead to bias in ai-driven decision-making. she will also say treasury is in regular communication with financial regulators on ai. they are asking the financial services sector starting this morning for input on how ai is being used within the industry. the formal request for information as it's known asks folks in the finance industry to share their thoughts on opportunities and risks that ai presents to the sector. the agency says part of what it's looking for are recommendations on how regulation or legislation around the use of aiin finance could

be strengthened and what measures could encourage competition and if there is a way to use ai to combat illicit finance. this is before the agency can move to formal regulation. it would still be a long process but with so few prospects for comprehensive legislation on ai right now the most action we will get on ai will come from this sort of regulation at the federal level. >> i appreciate that. >> jim, it's ironic because bofa has a note that goes into how gen ai will be game changing for large banks in a good way. >> yes. look, i had george kirsch on yesterday, i regard as the dean of cyber. >> ceo of crowd strike. >> yes. he said some people can imitate you. he said they can detect, ai allows them to detect. one of the things we went into is there are a lot of foreign nations that have been doing most of the hacking and they are not allowed to have -- they are not allowed to have nvidia.

>> no. the highest in chips. >> they ain't got no nvidia. >> including china of course being the same ones, iran is very active, russia we know, korea. >> they have made it so you are not going to get those. >> it's always an arms race when it comes to cyber and describer crime. >> yes, it is and they would all admit it. i do think that what's more powerful is jonathan cantor from the justice department looking at the choke points of nvidia. okay. so what is he supposed to do? what's nvidia supposed to do? say, do you know what, we're going to slow down progress and let amd catch up to us because that's the american way? how about the fact that maybe we are just a dominant player. what are we supposed to do? >> you created your own dominance. as a result of your ability to execute you created the market, you benefit from the abundance of that market until competition comes. >> right. >> i mean, you want to make

sure -- but there is, there's plenty of capital going on. >> jonathan cantor has obviously read, he's read the rockefeller churn out book and decided this is like oim. oil is naturally in the ground a yes, rockefeller wiped out all the competition by hoarding the oil, keeping it from everybody. that's not -- what is jensen supposed to do? is he supposed to go to college to get stupid? what is he supposed to do, jensen? what? what? >> hey, i'm sorry, i'm sorry i'm so good? remember merrick garland holds up a phone and he says, you know, this is the choke point. who are these people? who are these people when we're finally good at something? >> don't you want to create a fertile ground for the next nvidia? >> you do. >> there's plenty of money around if you want to. >> yeah. >> i like being dominant. >> we do have enormous platforms in these handful of companies that have incredible power over our lives.

>> well, i don't know. i like my phone. i like my phone. i like my nvidia. >> you can't prove it otherwise. >> they gave me the second, i can get anything with this dog. >> is this your building pass? >> that's a -- ragu can get it. >> do you get access? >> no, i don't have access, the dog has access. >> can you get me in there? >> only if you look like ragu. do you know why, after the way you treat he me, here you go, mr. ragu. you just got a haircut, i'm not going to do that to you. >> please not the hair. >> can you do garfield for me, please? >> i don't know how to do garfield. >> come on, you are garfield and i'm not talking about the darn cat. >> when we come back we will touch on tesla ramping up its push for shareholder approval of musk's pay practice after andrew talked to the board chair on "squawk" this morning. we will talk some ecb as well ntuen e re" othstet coins. nors the gap in my health insurance. gap in your health insurance?

yeah, it didn't cover everything when i got hurt. good thing i had aflac. hmmm the cash i got from aflac helped pay for medical expenses, groceries, rent. it really helped close that gap. go, go, go! yay! go aflac! go duck! get help with expenses health insurance doesn't cover at aflac.com wish we had aflac on our team. you can! ( ♪♪ ) your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire the all new godaddy airo helps you get your business online in minutes with the power of ai... ...with a perfect name, a great logo, and a beautiful website. just start with a domain, a few clicks, and you're in business. make now the future at godaddy.com/airo to start a business, you need an idea. it's a pillow with a speaker in it!

that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow! i don't want you to move.

i'm gonna miss you so much. you realize we'll have internet waiting for us at the new place, right? oh, we know. we just like making a scene. transferring your services has never been easier. 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! people couldn't see my potential.y. so i had to show them. i've run this place for 20 years, but i still need to prove that i'm more than what you see on paper. today i'm the ceo of my own company. it's the way my mind works. i have a very mechanical brain. why are we not rethinking this? i am more... i'm more than who i am on paper.

. we are tracking shares of tesla, they do appear to be moving a bit lower in the premarket. it would be a fourth straight qua quarterly decline. with the annual meeting a week away they are asking shareholders to vote on the elon musk pay package. robyn denholm explains what she thinks could happen if the combination plan is rejected by shareholders. >> ratifying the plan is the best option. clearly if it doesn't pass, then there are other alternatives, but none of them are as good from a shareholder perspective as actually ratifying the plan. people have asked me, well, why didn't you renegotiate? well, actually, from a legal perspective ratification is really taking the same plan and putting it back in front of shareholders with all the requisite disclosure that the judge asked for. >> and that is one of the key

points here, they wanted to say, all right, judge, in delaware you asked for this, we are still going to do it under delaware law, it's going to be the same plan and we are going to show you you were incorrect in your ruling in the first place by putting it back to shareholders and doing everything we should and keeping any potential chance of further litigation perhaps at bay. tesla shares barely off this morning. guys, as i talked about it a bit yesterday, the index funds here, significant holders of the stock, though, not necessarily determinant of the outcome of this are -- they were expected to follow the same path they did last time and so it's going to be an uphill battle for the company. you've got to get retail to show up. that's one of the key things here, just show up and actually vote. that also will be very important for the reincorporation in texas that is also being put to a separate vote of shareholders that requires 50.1% of the outstandings in favor for that to happen. but it will be very interesting to see if, in fact, the plan does not move forward because it is not ratified, what they

choose to do in terms of making sure that musk is adequately compensated. i mean, jim, is there ever a chance that he says i'm out of here? >> well, yeah. i mean, i don't think that in the -- great interview that andrew did with robyn denholm, i think she really skirted the one issue which is what happens in the boardroom? is there real disagreement, whatever. it seemed all consensual and that would make you feel like you would never leave, but the fact is he has other plans, big plans. i just retweeted, successful soft landing of the starship super heavy rocket booster. i mean, andrew -- he has many jobs. >> many jobs. >> so maybe this one is not of interest. >> earlier this week cnbc.com is reporting the -- other nvidia chips to musk companies. starship, it does have an impact on starlink and that's important, and amazing, by the

way. it's the biggest thing that's ever gone up like that and actually had a soft landing of the booster, came back down. >> incredible. >> but we did ask -- or i should say andrew asked chair denholm about the other aspects of musk's employment, so to speak, and what impact, if any,and how the board pushes back perhaps on him when he wants to go do other things or allocate resources in a different way. take a listen. >> the board does that all the time. i do that all the time. i'm not going to do it in public. i mean, to me that is the antithesis of good governance. what good governance is is making sure that we are getting the best outcomes for our shareholders, but we're doing it in a respectful way. elon is an amazing asset for the company and the future of the company. >> right. even 60% of elon's time is probably better than 100% of any other person's. >> could he shift it to 30% if

he doesn't win. ratchet it back. how does he do his clock? >> he makes his own plan. he allocates his way the way he desires. he had three different assistants, got rid of them all thchl because they weren't allocating properly. >> four quarters in time, haven't done that in a decade. market share 14 points in a year. any other ceo would you put them on the wall of shame? >> wow. that's a tough one because we know there has been no new auto company in years, we also know he is making these so they are considered to be autonomous machines, that wasn't in the narrative, there wasn't autonomous machines when they had the first pay package. i'm afraid to put him on the wall of shame because he did the deal that i want all ceos to do which is winner take all, loser take none. i think his pay package was brilliant. i'm tired of -- not him but the ceos who made $30 million whose stocks are stuck at, say, 100.

>> i mean, it's incredible. what spacex just did is incredible. >> right. >> the super heavy, came down, the booster, the heavy rocket booster. i mean -- >> you can see why people are itching to own shares of spacex. >> can you imagine that discussion after he rejected jensen and then, look, i need the chips. the two guys talking -- what was that like? that discussion? >> i just -- i find this -- >> it would be good governance not to talk about it. >> it's space. >> it's good governance not to talk about space. i thought good governance was open and transparent. >> it is. >> but i was wrong. >> no. >> i stand corrected. >> transparency is everything. >> we will get cramer's mad dash, countdown to the opening bell. we will get to lulu, lyft, hood, disney, five, shop, carvana in a moment.

(♪♪) at enterprise mobility, we never stop looking for new mobility solutions. because sometimes the best road forward, is the one you didn't expect. (♪♪) [busy hospital background sounds] this healthcare network uses crowdstrike to defend against cyber attacks and protect patient information. but what if they didn't? [ominous background sounds] this is what it feels like when cyber criminals breach your network. don't risk the health of your business. crowdstrike. we stop breaches. while i am a paid actor, and this is not a real company, there is no way to fake how upwork can help your business. upwork is half the cost of our old recruiter and they have top-tier talent and everything from pr to project management because this is how we work now.

all right. let's get to a mad dash. we have an opening bell two and a half minutes from now. where are you headed?

>> food group hasn't been so good. things got to expensive. jm smucker's surprised people with a pretty good number. they bought hostess, appears to be working, they have pet snacks, that seems to be working. this is a company that has done a lot to be able to make things better and hasn't mattered until now. good for smashing smucker, the fact that he just did the number instead of crushed t it was enough. i have campbell's on tonight and it wasn't enough. when you look at these stocks, david, inflation in food got to be too much and -- but not for pets. >> this family company is interesting. is he fourth or fifth generation? i think he might be fifth. >> i don't know. he's incredibly nice and perceptive about what needs to happen. folger's okay, peanut butter okay. >> yeah. >> getting rid of legacy pet food for just the good pet

food -- dogs like to snack. >> yeah. >> i don't think they have a set time -- >> no, they will eat anything at any time anywhere. >> they would snack all around the clock if they want to. this was a story a lot of people felt was going to miss. they didn't miss so the stocks is up 6. >> and they're making something out of that hostess deal. >> they paid a lot of money for that thing. >> i was so skeptical about that deal and mark said don't be skeptical. right now it looks pretty good. >> okay. >> you know, the hostess -- i thought that that would be something that diet-wise people kind of shy away from. it's working. >> we are going to talk five below after the bell in a moment but you did write this morning that the call was a vivid explanation to what's happened to some parts of the consumer. >> five below point-blank said it, that the consumer -- $5 -- north of $5 is too much. they had a miserable post

eastern time and i think that we have to really go into what happens in this country when a $5 company is too expensive. north of $5, america doesn't want it. no parts of america don't. >> the opening bell. you can see the realtime exchange. on the big board it's moody's, at the nasdaq it's life 360, a tracking device company celebrating its u.s. listing today. >> people don't realize garmin, thought it was wiped out by apple, it's one of the greatest performance of all time. >> it's a good way to know where your teen aged daughters are around the city. >> absolutely. we always used to do that. it was like six blocks, took an uber for six block lyft. >> lyft is up 8 premarket ahead of this investor day. >> look, risher, i had risher on, risher taught 20 million people how to read in africa after he had just crushed it at

ham zon. when he first came on, i had the first interview with him, and it was like, well, what do you think? do you think i can't handle this? i mean, the guy is -- the guy ask a genuine good deed doer who came back and look what he's done. unreal. >> yeah, it's a bit of a revival. >> yeah. >> are they -- i mean, is it all price versus uber? >> i think they have a lot of different things that they do. they have a meet you at the airport, they have a woman only drive and that goes well. they have actually had more drivers in so therefore they have more volume and they have a leader and risher is a leader and people want to work with him and for him. i say with him because he is probably one of the most horizontal people i ever met. we don't talk enough about who is horizontal in this business and who is not. you know who is number one horizontal. >> uber benefitting from that, up 5 today. the only better s&per is lulu today. >> lulu was a big short, dumb money got shorted i think down here, but i will tell you that

the lulu conference call i was not happy with. there were many things that went wrong. they missed on fashion, they -- domestically numbers just were not good at all, they were like a not great department store chain. international was good and china 52. that's what -- china -- mainly china did that for them because they had the wrong fashion and frankly there were markdowns. repeatedly the analysts asked about markdowns. >> expectations were that low that this is a -- >> precisely. precisely. to hear calvin mcdonald have to talk about markdowns, this is a company that is a full-priced company and yet this is a markdown season. did you see how big tgs is, the size of that company. >> i always remark on the market cap of tjx. >> 121. >> it's the kwaiiest $120 million retailer.

>> best down stock of the year, now walmart. >> wow, 29? what is it? i mean, that's incredible. it's very interesting that intel is $129 billion and tjx is 121, but that could change. we had that horse race yesterday on scottie's show apple -- i loved that. >> those are always fun. we can keep an eye on it as to as nvidia is still above -- right -- i mean, yeah, still above apple. >> okay. >> by the way, some of these stats on nvidia are worth going over again, guys. do you have them? i have them. of course, now i can't find them. >> i saw jensen is now 13th richest, $107 billion, jim. >> well, i guess he can get that $2,000 leather jacket. i went to tjx yesterday to get a leather jacket and the thing that really encouraged me about tjx was they said we don't carry anything warm, it's the summer. we get rid of that inventory

immediately. >> it was $2 trillion and $3 trillion, 74 trading days, roughly a year, a little over a year ago when i had asked the question earlier, it was a trillion dollar market value for nvidia, that was late may, as jim referenced, actually, and here we are, above $3 trillion with the stock up yet again. >> he will always tell you november 2022. >> yeah. >> when people realized what he had. he had been telling everybody -- will you look at that. my god. >> it's amazing. >> by the way, walmart, carl, to your point, is $540 billion market value. >> easy come, easy go. >> up 34% over the last year. don't forget when it comes to the robert frank part of the world in terms of net worth, that walton family they own 50% this have thing. >> you're absolutely right. walmart just so we know -- >> dividends alone are just immense every month. sorry. >> walmart and costco, that's them right now, burlington, tjx,

that's the economy we have. costco, positive article in fortune and the "washington post" as if costco never existed until now. wow, you need a membership? these are guys sustaining america. "washington post" was talking about how costco is a national treasure because otherwise we would be losing the battle against inflation everywhere. >> big lots will certainly fly in the face of all of that with a much larger than expected miss and loss, revenues amiss. >> they really don't know what they're doing. i mean, it's a shame. burlington -- burlington had a really good quarter, dollar tree was mixed bus i think they're distracted by getting rid of the family dollars. >> downgraded dollar tree today. >> that was very tough. >> that whole deal. >> seems like they just can't -- the split is not working. well, it's -- it seems like they are a little disorganized, that was a disorganized conference call. but the one that wasn't disorganized was ollie's. ollie's is not up today --

>> you mentioned ollie's yesterday. >> ollie's is opening -- they want to get to a huge number of stores. >> yeah. >> 1,000 stores. there's only a certain amount -- there is a finite amount of stuff that big guys give away. >> yes. >> now, ollie's does something, if you have a consumer packaged good brand, let's say you have crest -- i don't want to pick -- but you have a toothpaste company and you put out a new toothpaste, what do you do with the old toothpaste, you give it to ollie's. >> how do they different from tjx which owns t.j. maxx and home oods. >> it's a parallel. >> home goods is a similar -- >> home goods has -- it's so seasonal. i mean, you know, all these -- you go into home goods right now, this is when you better get your thanksgiving stuff locked down. i went into home goods the sunday before thanksgiving and it was a really good home goods in neptune, i asked the salesperson, i said -- no, we get rid of all of that by halloween, we don't want to get

caught with any thanksgiving stuff. the most sophisticated analysis i have ever heard. it was great. >> tjx. >> it's great stuff. great company. >> guys, cue the rocket again because i love spar ship going up. i could watch it all day long. there is also another potential thing at least we can talk about here that may have an impact on a number of other companies over time. once they get starship up and running and they are making great progress in doing that, they are going to be launching -- and, again, i'm relying a lot here on a jpmorgan report from last -- let's call it november, november 29th, they're going to be launching an awful lot of starlink satellites. okay? they've got granted by the fcc the right to a new constellation of 29,988 non-geostationary orbit satellites. they already have deployed obviously for the first

generation of starlink 4,425 satellites. that by the way may have changed because it report is six months old or so. but with starship they're going to be able to launch hundreds of the new satellites and these are next gen starlink satellites and they are going to reduce the cost dramatically and increase the capacity of starlink dramatically. these so-called v-2 minis will have four times the capacity of the v-1 and the eventual next gen satellites will have eight times the capacity. why am i mentioning all of this? sta starlink, some of our viewers may have it, you use it in rural areas, you use it even now in suburban areas. it's not moving to urban areas, it's going to be very hard, but it is going to be a competitor -- >> oh, no. >> -- in a significant way -- oh, yeah.

>> oh, no. >> oh, yeah. many discounted it was, i was thinking of -- you can remember global star or oridium and be like this stuff never works. >> correct. >> but starlink because he has the rocket and the rocket is bigger than any rocket ever. >> t-mobile is hitting a new high. t-mobile doesn't seem to be phased. >> fixed wireless is an important product for them, but this is really bringing broadband to more remote areas or not even remote and so that's the competitive set. who else hooks up broadband into suburban america? >> i had data bricks, they are the company when you speak into your clicker, your remote, they, you know, philly's game, they put it on. >> that's nice, jim. i like that. that's very nice. >> i got that. >> of course, if starlink keeps causing riffs among people in the amazon -- did you see that story? >> yes. isn't that amazing. >> something bad? >> they all have broadband

access now. >> everybody has broadband. >> obviously we talked often about its importance in terms of the ukraine-russia war. say again. >> is there a delay? is there any latency? >> i don't have the service. i think it's gotten better and better and as they are able to increase capacity four fold, eight fold with the deployment of the new satellites via the starship when it actually can do that, it's going to be a big thing. going to be important. >> so we need to start thinking about nba contracts going to space? >> possibly. possibly. >> by the way, speaking of media, disney, jim, looks like they do have some runway to start investing in florida again. >> yeah. >> another major park, a couple smaller parks. >> go back to experience. >> 10,000 hotel rooms over the next decade maybe. >> i know. go back to experience. experience can't be duplicated by starship trooper >> no, they're -- i mean, obviously their footprint in orlando is enormous and they're going to be investing -- they're investing over $60 billion over the next -- i forget -- five

year, eight year time, i'm not sure on the timeline, i forget, in the parks overall. >> bernstein, big look at how important experience is. >> i love that. part one, they do need to put a new theme park out, i think out west, but what's bothering me about this is that when i read this piece i said this stock is going to be up today. no. the stock just has -- the stock just acts so horribly, it's just -- actually dead. i mean, it's incredible. >> while we are on the subject of media, let me just give a quick update on paramount because i would assume those who care have been waiting, and we're just waiting for shari redstone controlling shareholder to make a decision. >> they are in worse shape than other companies. >> make a decision about whether or not she wants to sign on to the deal which would give her roughly $2 billion for national amusements and obviously also include another roughly $6 billion being spent by both sky dance and red bird in terms of

infusing cash on the balance sheet at paramount and most importantly buying out a decent percentage of the b shareholders and the a's, by the way, that are not controlled by sherry at a premium when the deal closes which is obviously a long time from now. it's an emotional decision one might imagine given her family's control of this company has extended over some 40-plus years, but, jim, there are many, you know, who would say take the deal. it's an opportunity for both the broad shareholder base to cash out and for you to get a premium for your shares and potentially pave the way for this company -- and she would roll in, i'm told, if she signs on, the common that she has, the bs into the deal as well. >> we're just waiting. will it be tomorrow? could be. it's been a few days now in terms of -- say again. >> night ridder took the deal. >> that was a smart deal. >> paramount will bone up on night ridder.

>> it was a really smart deal when they took that. 60 bucks a share. >> that was so great. >> they all went bankrupt. >> night ridder when i was being paid $154 a week, i also got like a billionth of a share. they did a reverse split. >> linearcable networks are challenged to say the least and paramount has quite a few of them, but i think there is a belief on the part of this party that is willing to put up $8 billion in new capital that you are talking about an ability -- it's not just about cutting costs. that the value of a broadcast network may be undervalued in cbs. by the way, with larry ellison behind you you will have the money to spend on the nfl and that's important, right, to step up again when that contract -- it's years away, but when that contract comes up. you know, you would have a need to potentially partner in streaming, but even beyond that, don't forget there is the tie up when it comes to oracle and david ellison being the ceo of this company and what you can do on the technology level in terms

of creating the first truly technology-enabled media company. i'm not sure how to exactly put it. i think that's part of the growth strategy here and why -- why they're willing to put so much capital at risk for a deal that would seem to have a lot of potential issues. >> i totally agree. now, david, just in terms of what we heard with musk and denholm, if larry -- if larry decides to just help his son, okay, because he thinks it's going to be great for his own company, that's fine. >> yeah. right. and, by the way, ellison, kxr, red bird are investors in sky dance and you are putting a valuation on that as you merge it in as well. so that's not unhelpful. you're right, ellison is obviously stepping up for a lot of the capital commitment as is red bird, kkr they're not. >> larry is going out the data center as quickly as the other guys, as the hyper scale -- he is hyper scaling.

do they need a lot of data -- is this just something that you would want to have if you're going to be in that business? >> i think so. i mean, you are talking about creative content, driven business that would -- you know, obviously ai is going to be an important part of and change the media business and so you're going to be at the forefront of that. you would be one of the few or first sort of leaders of one of these companies in his 40s not an older guy. >> and increasingly what we're seeing -- first william shire's voice, a new series about hitler and world war ii, it's just ai -- i have to listen to books on tape -- >> "rise and fall of the third l reich." >> excuse me ignorance because i have not watched the production but the narrator is -- >> ai created. >> i mean, the narrator. i mean, william -- he died years ago. what a distinctive voice he had, just incredible. i think that the idea that this is what's happening.

if i were larry ellison i would definitely -- it's a very exciting time. >> worth mentioning of course given today is june 6th. >> absolutely. >> and the former of normandy took place 80 years ago. >> our president and the first lady in france today honoring some of the american veterans who are over there getting the legion of honor from macron. pretty incredible day and series of visuals. >> by the way, all time high, didn't take much but we got it at 5362. ecb cuts, canada cuts, swiss cut. >> i mean, look, you get these cuts, you're going to be flying. this is why everybody -- we don't -- look, the further out they are the more exciting it is, that's the way i look at it, just building and building and building. and then the people come in from the outside, you know, from the sidelines because they say, wait a second, i'm not going to be getting that 5% and next thing you know you have prices even higher. and i know that sounds like dr. pan loss but i think it can

happen. >> i know you saw this goldman note on flows yesterday, the phrase "wall of money" was used and a reminder of how good the first two weeks of july generally are. >> it's -- you know, we are headed into a period where you want to get long and i still think -- we had an article yesterday about how people are still pulling out of the market like mad, people leaving the market. we can't own stocks. i have a treasury rolling over and i'm going to say, wow, i get 5. >> yeah. >> you get 5. >> 5 is pretty darn good. >> but if you take my 5 away -- >> what about the fear that we are not going to have a soft landing, that things are starting to deteriorate at a more rate, the 1.8% gdp, we had been above 3 not that long ago. >> i think we will get an okay number tomorrow. look, david, the clock starts again if we have a bad number -- a hot number, starts again for when he's -- >> right, and what do we get? the next inflation gauge is next week. >> cpi.

>> cpi is next week. >> look, i'm just saying that there is a lot of money that wants to come into this market and waiting for cuts and you can't wait. that just never paid off. you have to go now. you have to go now. i was with someone yesterday they said i bought a lot of didia. >> didia. >> it's a silent n? >> vidia, it's a silent n. i didn't know it was a silent n. good to know. >> to jim's point ten year back through 4.3. we didn't mention claims, 229 is the second highest since august, but unit labor costs did come in below expectations and productivity beat and that definitely did help sentiment. we're back in a minute.

i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah.

airlines behaving well today. united upgrading at redburn and

go to buy, the average 20-day tsa through put is multiyear highs, the u.s. consumer, if challenged, continues to travel at least. the dow up 133, the s&p off all-time highs. stop trading with jim is next. champion iron offers a rare solution to decarbonize the steel industry. which represents up to 10% of global emissions. the company recently doubled production capacity at its mine in eastern canada. it is now investing to produce one of the world's purest iron ore. enabling green steelmaking without the use of coal.

controlling a large portfolio of high purity iron ore resources. champion is considering strategic partnerships to further develop the region. champion iron.

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

. let's get to jim and stop trading. >> first of all, i don't want to get wrong with ser randos, hitlernd at nazis on netflix. [ inaudible ] i'm furious i was in the board room to celebrate right here to celebrate their tenth anniversary and if you want to know who is not getting enough credit because they do ethernet and jensen has a competitor, but these guys are partners and they do a lot of work and jay does not -- you know, doesn't go all over the place, jensen this, jensen that. doesn't have to. she's got an important product. hot tam being on the board. >> no. >> do you think they say yes, yes, yes. let me get back to you. yes. no. totally heavy weight. she is an amazing ceo and doesn't get nearly the credit she should for the ethernet product that everybody loves.

>> i know you love amelia research and reiterated a buy on both. >> went back and forth with them. he's -- i know his dad, bob, greatest chemical analyst of our time and lives in philly. ben just doing level work i've not seen with analysts in a long time other than michael sembliss with the sports piece that i have to read. >> reading it right now. >> how great? >> amazing. >> sembliss is the best there is. >> cool thesis it's no longer limited to billionaires to play in. >> it isn't. >> i told you. i told you. >> redbird i've been mentioning, paramount active in that, difts private equity firms now. >> yep. >> you could have bought an mls franchise for a million bucks. now it's a fortune you could own one of those. >> i bought a mezcal company. >> made a mistake. >> what's on tonight? >> i don't know.

>> all right. >> it's okay. >> lyft. david risher's lyft is on. campbell's, the quarter not perfect. then a guy, evan greenberg, read his shareholder letter, like jamie, jamie could do well to read his evan's shareholder letter. that's my dog. get into global headquarters. uncle. un-n-c-l-e u-n-c-l-e, nvidia. >> thank you didia. >> silent "n." >> get ready for jobs in the morning. back with more on the nvidia apple market cap bat until a me.t this is our future, ma. godaddy airo. creates a logo, website, even social posts...

in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo how do you find the perfect father's day gift? simple. just type wt.com. weathertech has hundreds of premium products that will keep dad's vehicle looking its best. like laser-measured floorliners, cargo liner and seat protector for extra interior protection. sunshade blocks harmful uv rays.

the cupfone perfectly secures his phone while driving. order these american made products or a gift card at wt.com. happy father's day. sure, i'm a paid actor, and this is not a real company, but there is no way to fake how upwork can help your business. search talent all over the world with over 10,000 skills you may not have in house. more than 30% of the fortune 500 use upwork because this is how we work now.

good thursday morning. welcome to another hour of "squawk on the street." i'm carl quintanilla with david faber, melissa lee in with us at post nine of the new york stock

exchange. sara eisen has the morning off. we'll see her in a moment, later on this hour. all-time highs coming off the s&p about 5362. nvidia goes to 3 arthtrillion. >> just about 30 minutes into the trading session, here are the movers we're watching this hour. nvidia, of course, front and center the tech giant overtaking apple to become the second most valuable company behind microsoft, although lose something ground today. more on nvidia, apple and tech ahead on the show. shares of lululemon are rallying. the athletic retailer posting a 10% jump in revenue beating estimate sales in china hoping to offset slowing growth in the americas. lululemon increasing its share buyback program the second time in six months it has increased returns to shareholders. shares of lyft rallying, targeting 15% annual growth in gross bookings for 2027 and gross bookings from its

advertising business to increase eight fold in the same period. the stock up 9.5% right now. >> the rate cut race has begun. yesterday canada as you know became the first g-7 country to slash rates. today the ecb cuts for the first time since 2019. our steve liesman is here. steve, curious to know if you agree with some descriptions of this as a hawkish cut? >> yeah definitely. those are my first characterization of it as the ecb ecb cut rates since september 2019 bringing the main financing rate down to 4.25. part of the move that includes other central banks, but so far, it's excluded the united states. in her press conference ecb president christine lagarde did describe the decision as a cautious move that wasn't designed to ease, so much as to remove excess restriction. >> are we today moving into a dialing back phase? i wouldn't volunteer that because, as i said, we are

making a decision on the basis of the confidence that we have that we are on a path we will need data and more data and analysis of the data to constantly confirm that we are in the disinflationary path. >> okay. why did the ecb cut? underlying inflation has indeed eased over time from double digit downs to mid 2s right now. inflation is forecast to further decline over the next couple years and rates are more restrictive because of that decline in inflation. importantly christine lagarde described the cut not as an easing but removal of excess restrictions, so there could be further cuts to come but july sounded unlikely. the u.s. started hiking before the ecb in this cycle and actually went higher. now it's lagging in cuts. what's interesting is, fed officials in the past mentioned the same criteria for cutting

that christine lagarde relied on today. here's the reasoning. as inflation has fallen the real funds rate has risen becoming more restrictive. that gives the central bank scope to cut, but remain restrictive and keep fighting inflation. what i don't know is, did powell today listen to what christine lagarde was saying across the popped? >> steve, really quick, i have to get you on jobs tomorrow. today the jpm desk that argues anything 150 to 200 range is probable lay nonevent -- probably a nonevent. you would need to see sub-300 to change the narrative. >> not quite. i think 150 is weak. 150 would get the fed's attention. if it came along especially with a rise in the unemployment rate, so i think the -- i would say 170 is my floor. 150 starts to say, maybe that little pop in jobless claims had some actual impact, being echoed in the payroll numbers. i would raise my floor a little bit on that.

i think 200, 225, would be a setback. it's a tight window. looking for a little bit of that weakening, carl, as you know. it was you reminding us yesterday, we were looking for this slowing, so we'll see if we get it and we can get it in a moderate way that allows fowl echo what christine lagarde is doing. reduce restrictiveness, but not ease. i think she's pulling it off, and i think powell can too. >> steve, thank you. steve liesman. we'll turn now to technology and usually that means nvidia. in fact did it overtake apple to become the second most valuable company behind microsoft. that was yesterday. see a bit of a different story this morning as nvidia shares have reversed course and are down about a 1.5%. 1.2%. dominic chu is here to talk about what has been truly one of the more incredible runs we've seen of a stock in a very long time. dom. >> probably since the dotcom era to your point, david, about the massive move that we've seen. just to kind of give you an

idea, again, we've now in the real-time monitor as you saw, drifted slightly below the 3 trillion mark, but wear going to call it the $3 trillion club because it did hit it yesterday. microsoft, nvidia and apple, they've all drifted a little bit lower. as of last night's close, we're still talking about microsoft at roughly $3.15 trillion, right, in that particular move there. i'm going to -- they kind of cleared it for me. take a look at the $3 trillion club. microsoft up 2% over the last year, apple up 9%, the laggard there, the nvidia 213 plus gain story, about a year ago in june of last year, this was a roughly $374 stock and now you can see kind of where we're at right now world war to the move higher. that's the move we're watching so closely i here. take a look at the relative strength or momentum that the stock has really seen. the orange line, the orange-yellow line the 200-day average price on a rolling basis

for nvidia and the 50-day average price on a rolling basis is the more kind of blueish line you're seeing here. we kind of touched around there over the course of the last couple months only to shoot higher. we've been solidly in an up trend against both of those moving averages for the better part of the last year here and the reason why a lot of chart watchers are saying if there is going to be a pullback it could be a deeper one and still, david, or carl, not be that big of a deal because the long-term trends are very much intact. karl, i'll send things back to you guys. >> thanks. dominic chu. as dom points out nvidia is helping to fuel tech higher. sector up more than 40% for '24. does the group have room to run? joining you adam benjamin from fidelity investments that manages a number of tech funds there. thanks for the time today. >> thanks for having me, carl. >> you guys have been in the sweet spot. nvidia the top holding in the tech fund or select tech portfolio and we had a long

discussion about how long their advantage can last. you think there is more runway go? >> you know, i think we're early in ai, especially generative ai, so i think that's the key thing you need to be thinking about here, and this is a company that's been working on ai for 10 plus years. so there's a huge moat here. this is a technology architecture shift that's ongoing and we think we're early days here. >> skeptics always like to say one company's margin is another company's opportunity. when your adjusted margins are near 70%, does that still make sense? >> i think ultimately the value of a company's profitability, their cash flow, it determines you know their valuation. and right now the company has driven significant revenue growth and profitability free cash flow given the superiority

and the differentiation of their solutions, right. this is a full stack company driving, you know, massive infrastructure and commute and networking and software and algorithms on top of that and services. so i know people like to talk about this as a chip company, and i am a chip analyst. started my career there 20 plus years ago. but this is really a full infrastructure and compute and services company. >> so if those enterprise dollars are going to an nvidia, let's say, adam, then where are they coming from? budgets are limited and so what we saw in earnings season is some evidence that software companies, for instance, are seeing some softness, particularly subscription software companies, because spend is going to ai. how do you think about the impact, the ripple effect of all the spend going or a lot of spend going to ai? where does that spend come from? >> i mean, so a lot of people are talking about generative ai, but within this shift, there's a shift from general computing to

accelerated computing. there had been a shift from enterprise to the cloud and this is really accelerated that shift. and so what accelerated computing is doing is changing the whole architecture that's embedded and that's existing today about over $1 trillion. so that's getting upgraded. as you mentioned, there are winners and losers in any technology shift, right. you had the shift to the internet, to the mobile, there are going to be winners and losers, and today's winners can be tomorrow's losers as you point out. but, you know, so we are seeing a big shift. the software companies are getting disrupted a bit here. and there are big, you know, chip and architecture companies, you know, in the general compute area that are seeing, you know, things changing for sure. >> so what software companies are getting disrupted? salesforce is among your top holdings, adam, and during

earnings season we did hear about softness. is there concern on your part that they are one of the losers or seeing pressures because of the spend on ai? >> what i would say is things are moving fast, right. there's definitely an evolution. we are in the picks and shovels and infrastructure and compute phase of generative ai. as it relates to the budget constraints you mentioned, you are seeing companies deal with that, and budgets are tight. the economy you mentioned earlier is not particularly great, you know, across the globe. there are challenges. so those budgets aren't increasing and there's a shifting of the budgets going on and companies that are seeing as you mentioned crm referenced that, some other companies i know recently have also seen their businesses be slower and see some of their business get sacrificed for spending elsewhere. >> adam, you know, i see apple is the third largest holding at

roughly 10.8% on the numbers we have for the select technology portfolio. if you had known it this year your performance might have been better given it's roughly flat. i'm curious how you think about apple, particularly going into next next week when we are going to hear about their aspirations when it comes to ai? >> look, david, hindsight capital has amazing performance, right, but, you know, we have a portfolio and we run a lot of assets in the sense of we're trying to identify those companies early that are -- could be winners. as you mentioned, apple's gone from, you know, a loser to a winner to a loser. there's been a bunch of companies on generative ai and they are, you know, noticeably, you know, behind. they were early with. you will hear interesting things next week. they have a massive install base. i wouldn't count apple out here at all. i think, you know, they've been left behind, clearly, as other

companies have been in some respects, but stay tuned for next week. it should be interesting. >> monday is going to be big. adam, appreciate the help very much. adam benjamin. >> thanks for having me, guys. u.s. regulators opening antitrust inquiries of nvidia, microsoft and openai. eamon javers is here with all the details. >> good morning. multiple sources familiar confirm to cnbc that department of justice and the federal trade commission are in the final staijs now of a deal to divide up antitrust inquiries into nvidia, microsoft, and openai. several of the most dominant players in the rapidly emerging ai space. the deal first reported by "the new york times" this morning largely covers investigations into the behaviors of these companies, i'm told, and not necessarily the mergers and acquisitions that these companies are engaging in. now unless those mergers are tied to products that were already under investigation. so the two agencies here, the doj and the ftc, hashing out

this deal. one item that has not been reported so far is that likely to be included here is taiwanese chipmaker tsmc, which will fall under the department of justice's per view in any upcoming investigation. i'm told according to a source familiar. because tsmc has operations in the united states, it comes under the department of justice's jurisdiction here, even though it is based in taiwan. that signals that the u.s. government investigative effort will be focused on the hardware and shift piece of the industry as well as the software and large language model side of this vast emerging industry. according to terms under discussion, doj will take the lead on investigating whether nvidia has violated any antitrust laws and the ftc will lead examinations of openai and microsoft. now altogether, this broad agreement sets the table for a sweeping biden administration inquiry into the ai industry which has been seen as being dominated by a small group of

some of the largest tech companies. one piece of color for you, guys, the two figures at the head of these agencies, were together in person on tuesday, at cnbc's ceo council event in washington, d.c. now in the green room behind the scenes, i saw jonathan kanter, the head of antitrust at the doem department of justice pull aside lina khan the head of the ftc, they had a quiet conversation in the corner of the room there, just the two of them. i don't know what they said to each other there, but it is clear that intense negotiations on this deal have been going on for some time and they came to a conclusion earlier this week. we are told they are now in the final stages of papering this deal, but clearly this sets the table for something significant in the antitrust and ai space. back over to you. >> eamon, it is interesting. one wonders what they're going to come up with if and when they conclude their investigation. i would make the point it's an obvious one, generative ai

requires an enormous amount of compute power. only a handful of companiesthat can afford to do it, and those do tend to be some of the names you just shared because they're going to be spending tens of billions of dollars. i don't really know what -- what's the alternative? >> one thing if you look from the ftc's perspective, they blocked nvidia's acquisition in 2021 of arm. that company ends up going public, you know, huge stock market reaction if you ask the folks over at the ftc, they would say, that's a success and that's the kind of thing they want to see more of. more companies in this space going public rather than fewer in terms of the acquisitions. they don't want to see necessarily the big companies swooping in and acquiring all the smaller players here. they want, you know, 1,000 flowers to bloom, so to speak. >> hard to get ahead of something moving this quickly. >> it is. >> eamon, thank you. we're going to get reaction to the doj announcement or the

ftc-doj partnership you heard about. that will be ahead on the show. here's what else we have on the road map for this hour. we're one week away from tesla's annual meeting where shareholders will vote on elon musk's pay package and corporation in texas. we'll speak to a former tesla board member. >> shares of lulu surging. deeper into the numbers and the comments from the ceo calvin mcdonald. >> the nasdaq trading at new highs. how much more room does the market have to run. "squawk on the street" is back right after this break.

energy fuels, a leading american uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. champion iron offers a rare solution to decarbonize the steel industry. which represents up to 10% of global emissions. the company recently doubled production capacity at its mine in eastern canada. it is now investing to produce one of the world's purest iron ore. enabling green steelmaking without the use of coal. controlling a large portfolio of high purity iron ore resources. champion is considering strategic partnerships to further develop the region. champion iron.

ratifying the plan is the best option. clearly if it doesn't pass, then there are other alternatives, but none of them are as good from a shareholder perspective as actually ratifying the plan. people have asked me, why didn't you renegotiate? well, actually, from a legal perspective, ratification is really taking the same plan and putting it back in front of shareholders with all the requisite disclosure that judge asked for. >> that was tesla's chair robin denholm on "squawk box." she was talking about elon musk's pay package. we are one week away from the

tesla shareholder vote, that is where musk's multibillion dollar pay package is at stake as well as the relocation of the texas from delaware to texas. recorporation. they are headquartered in texas. the wesley group founder and managing partner, steve wesley joins us now. always good to have you. i assume you're still -- i might be wrong -- a shareholder. but either way, i'm curious how you would vote on the compensation package, yes or no? >> well, i think i told you no. elon has done an extraordinary job, but for the $55 billion pay increase precisely the time when you've missed quarterly numbers, growth is slowing down, and you've laid off 50% of the workforce, i would say hubris to say the least. the real story is going to be, an awful lot of the world's pension funds including calpers are on the board, highly likely to vote no.

i think that's what's likely to push a no vote. it's going to be high drama next week. i think everybody is going to be watching. me first. >> i've reported as well the index funds, which i believe all voted against it, perhaps an uphill battle for them. i'm curious why you feel that way? this was approved by 73% of the shareholders in 2018. it was way out of the money. in fact, i remember at the time we were discussing the fact that my god, could you imagine them reaching these kinds of price targets on the stock for them to get money and they did. why, you know, why judge it now as opposed to think about well, isn't he deserving of something he was contractually due? >> well, let me tell you exactly why. if you look at his performance over those years, it was stunning. 2021, tesla had 71% growth. 2022, 51% growth. these are software type numbers. that's why tesla rocketed to the top ten market cap companies of

the world, and i think at that point he probably deserved it. if you look at what's happening with growth over the last few years, last year down to 19%, this year could well be in single digits, profitability coming down, the facts on the ground have changed and i think that's why you're likely to see shareholders coming back with a very different perspective. but as i said, we'll see. it will be high drama next week. >> any concern on your part or should there be on the part of shareholders that musk would depart or devote even less time if, in fact, he doesn't get this compensation that he says, obviously, and the board says he was due? >> well, i think there's concern from tesla shareholders on a lot of things. will they get to a $25,000 car in the next year leading the pack. the next big issue is, will he really have full self-driving? waymo has rolled out in four cities, moving nationwide. tesla's not quite there yet. there are a lot of issues that

need to be resolved. if you'd ask me a year or two ago is elon ever going to leave tesla not a million years. that prospect is a little cloudier. we'll see. >> do you think the best days of tesla are behind it, steve? >> i think it's too early to throw in the towel on that. keep in mind, even though tesla slowed down a bit, precisely the time the entire global industry is moving to electric, because the cost of batteries continues to go down, tesla still held 52% market share in the united states. that's more than all other competitors combined. they're in a strong position. they own the dealership, they have a cost advantage on batteries. but if -- you have to kick things into a higher gear, starts with fixing full self-driving, the $25,000 caron the market. >> the world is moving electric, but the world is increasingly and at a quicker pace moving to hybrid and so that trend is not favoring tesla right now. can tesla still remain at a

premium valuation when the growth right now at least for the foreseeable future is in hybrid? >> the growth is not in hybrids now or in the foreseeable future. the fastest growing segmented ev market is still all evs. look at byd. the reason for that is the cost of batteries continues to go down roughly 14% a year. i think if you look forward five years from now, hybrids will be in the rearview mirror. people at byd, hyundai and others agree. the people clamoring the loudest for hybrids are the firms like toyota, gm and ford. they've been laggards in the sector. they're going to be going all electric too, but make no mistake, the fewer is all electric, not hybrid. tesla well positioned for that and byd. >> steve, as somebody who was a member of this board, i'm curious, delaware chance larry court decided the board was not independent when they chose to

bestow this compensation plan on mr. musk. do you believe this is an independent board, that it does have the ability to rein in elon musk? >> look, that's for the courts to decide. i know a lot of board members i think they're extraordinary people. how independent they are, i'll leave that one to the courts. >> okay. well the court made its decision. we'll see what shareholders say. we've gotten your opinion. always appreciate it. thank you. >> you bet. happy to be here. >> still to come, lululemon among the top gainers in the s&p 500 this morning. excluse mmt omhe civcoenfr teo on its latest quarter. back in two.

i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models.

oh, that's so rock roll. it is, right. he gets it. yeah. municipal bonds don't usually get the media coverage the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free. now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least $10,000 to invest, call and talk with one of our bond specialists at 1-800-376-4376. we'll send you our exclusive bond guide, free with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular income are federally tax-free and have historically low risk. call today to request your free bond guide. 1-800-376-4376.

that's 1-800-376-4376. shares rising and sara eisen talked to the president last night. the street was bracing for a guidance cut and we did not get that. >> right. the framing into this report is so important because the stock was down 40% year to date into the report and so initially, the better than expected results were taken as a sigh of relief.

as you can see, the rally has faded. the characterization there it's not necessarily an all clear from the negativity that has been built up aernlgds the stock. the numbers were better both on earnings and on sales and they did reiterate importantly the guidance for the full year, 2024. which as you said some on the street were bracing for a cut. they did guide 2.2. the next quarter. that came in a little bit below consensus. i did speak with calvin mcdonald, the ceo, he said the growth of the company continues to be strong. nothing has fundamentally changed around the growth story of the brand, a nod to investors questioning that very point. as far as what they saw on the quarter, incredible momentum in every international market. china grew above 50%. the company and bullish investors see that as proof of concept that brand is still very strong and is resonating.

what happened in the u.s., growth wasn't as strong. our men's fitness, according to mcdonald, significantly outpaced the market, but in women's, he said, we had a missed opportunity on color, palate and sizing. we missed the newness. we didn't go into the season with the breptsds and understand our root causes. they usually turn it around. he also made the point a lot of innovation is back half skewed, so they're relying on a pick-up in growth in the second half of the year and they will release a few new leggings in the next few weeks, big launches in women's pants, including a new hot yoga pant, hot yoga is popular right now. as far as the overall consumer, lulu has warned about this last quarter and does say that the consumer environment remains very dynamic and inflation and higher interest rates are weighing on the minds of the consumer, and they are being more selective and just to back

up that point, carl, he said that they did see more markdowns this quarter. it wasn't a shift in strategy from the company. it was just where the consumer was going and also the lack of newness. but mcdonald is trying to give confidence that there will be a pick-up in the rest of the year and see international as proof that it's still happening for them. >> yeah. going into a would-be promotional season your might begin to worry about operating margins, but they reiterated that guide too. >> i think the concern from here, carl, they still need to prove that growth has not peaked for this company. that's what the bears say thaevgs seen best growth days, and that competition is not fundamentally cutting into the business too much. look, especially in women's clothing, we have seen brands like aloe and biori surge and jefferies, which is bearish on this name, say the women's business in the u.s. for aloe and biori are $1.5 dlp billion.

lulu's is $4 billion, considering they posed no threat three to four years ago. when i talked to calvin mcdonald about the competition argument he said look we've been dealing with competition for years. there's nothing new here. there's nothing to suggest our brands aren't resonating. they have seen a few missteps and they have seen the consumer waeken, they lost their chief product officer, something he told me was planned, they had a succession plan in place and feel good about it and going to be releasing innovation. now it's going to be battleground because it's not the same kind of world we saw from lulu to see 2 to 3% growth in the u.s. is not where it was in the last few years. investors will have to decide whether they still see it as a growth story. >> sara, thank you. sara eisen, of course, joining us with her reporting. let's get a news update now. seema moody has that for us. >> david, the israeli military launching an air strike

overnight targeting a hamas compound embedded in a school operated by the united nations nation for refugees in the gaza strip. the idf said it was not aware of any civilian deaths but gaza officials claim 35 people were killed, including a number of women and children. the new york city architect who is the suspect in a string of killings on long island was charged today with two more murders. rex heuermann is now accused of killing six women, dating as far back as 1993. the new charges come weeks after authorities renewed searches in his home and a wooded area of long island. president biden in france today to honor the veterans who fought in the world war ii defining d-day invasion on the battle's 80th anniversary, part of the official ceremony with french president emmanuel macron and other dignitaries and 150 american veterans. >> seema moody. still to come nvidia overtaking apple in market cap but lose something steam this

morning and -- lose something steam. we'll talk about the fallout with early facebook and google veorog mam.e we're back in three. bringing you an elevated experience, 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. [busy hospital background sounds] this healthcare network uses crowdstrike to defend against cyber attacks and protect patient information. but what if they didn't? [ominous background sounds] this is what it feels like when cyber criminals breach your network. don't risk the health of your business. crowdstrike. we stop breaches. ♪ i wanna hold you forever ♪ hey little bear bear. ♪ ♪ ♪ i'm gonna love you forever ♪

♪ ♪ c'mon, bear. ♪ ♪ ♪ you don't...you don't have to worry... ♪ ♪ be by your side... i'll be there... ♪ ♪ with my arms wrapped around... ♪

big tech is pushing the s&p and nasdaq to record highs and facing pressure from washington with treasury, doj, the ftc, all taking steps to look into ai's biggest players. joining us to discuss this morning, elevation partners co-founder roger mcnamee, early investor in google and fastcebo. you wrote thanks to the manic pursuit the platforms themselves have become unsafe in new ways. beware, you said. >> yeah. well, carl, the issue here is there's nothing wrong with ai as a concept or a business, and there's clearly nothing wrong with nvidia which i think is one of the most extraordinary companies i've ever seen. the issue here is the generative ai was designed to pass a test

which means it was designed to fool humans into thinking it was human and that's really great for demos and things that don't have high value in a corporate sense but when you get into productivity work you want things to be based on fact, not something that generative ai is capable of doing. it can't distinguish fact from fiction. the result when you look at it, we've seen this massive rush to market. and the most recent example is microsoft with recall, which is a product that takes a snapshot of everything you do on your pc in windows and everything that's related to copilot and all the other things in the microsoft suite. well, the problem with it is they forget to put in security. the stuff is kept in plain text on your pc which makes it incredibly easy to hack and hackers have already figured out how to do it. you look and say what could possibly go wrong.

stalkers, hackers, ransomware, all are there and the problem is the there is no protection on the consumer on this. the issue in the ai space is that there are a lot of things going on now that should still be going on in a lab and yet corporations are deploying it incredibly widely, spending literally billions of dollars. microsoft is spending $10 billion a month. >> yeah. >> on cloud service centers and the key point is they're putting most of them in deserts where there's no water, despite the fact that every time you put in a prompt, it uses half a leiter of water. so when you get the stuff to scale it's going to have environmental dhaj we may not be able to recover. >> right. that's a separate ball of wax, roger, but to the product element and the end reliability aspect f the consumer is not smart enough, aren't corporates smart enough to turn their backs on products that give you that misinformation? >> so far there's no evidence of

that. i believe that in fact and openai have executed the greatest marketing campaign i've ever seen. i've been in the business 40 plus years. it's really extraordinary what they've done, and i would argue that the validation of openai and chatgpt by microsoft caused corporations to relax their processes. and in a world where 5% interest rates make it much more expensive for corporations to buy back their stock, executives were looking for a new shiny toy to show investors. and they all jumped on to ai at the same time. and the results of this is, with microsoft saying this is totally safe, we're putting it into all of our products and google saying hey, this is totally safe, we're putting it into search, everybody goes, hey, those guys are smart, richer than we are, they've a bigger market cap they must know what they're doing. i think the question investors should be asking is not whether people will buy this stuff, because i think microsoft will succeed in selling a lot of it,

but what's going to happen after it's deployed. last week's example with google and search shows you what the downside is. which is that people are getting search results telling you to cook chicken at temperatures that are unsafe and you want to eat three rocks a day and stuff like that. and, you know, that stuff is funny and cute but also incredibly dangerous and if you put this into an important application setting, there's all kinds of problems that come up from it that are just about the facts and then, of course, the security issues and all the other stuff that comes with it. >> one of the greatest marketing schemes of all time, so roger, how long does this ruse go on for? do you believe in the people who think there's going to be a massive pc upgrade cycle because everybody has to get the microsoft pc with the button on it for ai or, you know, does the rubber meet the road before that upgrade cycle ever materializes? >> there's no evidence that there's going to be any pause in this at all.

and i look at this and if i were a fortune 500 ceo i'd be staring my cio in the face and just saying, look, pal, pause for a moment. show me the roi case for this. show me how this is actually going to work in practice. let's go slower. we can take credit for doing it but go slower. and i look at all the stuff -- again, i believe there will be versions of ai that are powerful and useful, but i don't think the generative ai, that generation of technology, is going to be the one that gets it done. and maybe i'm going to be wrong. but the one thing i can tell you if you're an owner of microsoft or an owner of nvidia, the stocks are priced wait view it's going to be so big the stocks will double from here and that is possible. everyone's on the same side of the trick. if i learned one thing on wall street, when everyone on the same side of the trade, it's

really useful to spend a few minutes thinking about what would happen if they were wrong. >> except the idea that demand is suddenly going to dry up seems just fanciful. >> oh, to be clear, david, i'm not expecting demand to dry up. i'm actually expecting the stuff to get sold an then in the field to have very, very bad outcomes. >> right. >> but david, you remember this because you and i have been around a long time. in 993 a company called sap, r-3 a brand new consnepts accounting software, enterprise resource planning, they partnered with anderson consultant, now accenture, it was exactly like this. accenture, anderson consulting validating what sap was doing and persuaded the whole fortune 500 to buy the software. the problem was, that the software required between 10 and $100 worth of modification for every dollar you spent on the software. and that proved to be a disaster

for almost everybody. and at the time, one of the points that i made to people was, you wanted to go long sap and short their customers, and i'm suggesting, maybe in a repeat of that, okay, and, you know, likei said, i think microsoft can sell ice to eskimos and, you know, they're very good at this. that doesn't mean that they're right or that the product is going to be any good. >> roger, next time we'll talk about the actual regulators themselves and whether they can do anything. we'll save it for next time. >> that's a separate question and that will be fun. see you soon. >> thanks. coming up next hour, in "money movers," the s&p trading at all-time highs. stifel says the index is set to see a 10% correction. we'll talk to the strategist behind that call next hour. we are back in three. (♪♪) iconic brands speak for themselves.

we are so excited to welcome you to our community. today is all about you. (♪♪) (♪♪)

check out shares of apple, slightly red here, trying for a ninth straight day of gains. that's the longest win streak in a couple of years. d.a. davidson does reiterate a neutral, piece in the journal on

their efforts behind ai. a big day is coming up on monday with wwdc. 'lbeayitus wel right back. s not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. the all new godaddy airo. put your business online in minutes with the power of ai.

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. are you interested in safeguarding your investments with gold? alamos gold is a growing canadian gold producer with a long track record of outperformance. alamos gold. invest with us. our growth sets us apart. - after military service, you bring a lot back to civilian life. leadership skills. technical ability. and a drive to serve in new ways. syracuse university's d'aniello institute

for veterans and military families has empowered more than 200,000 veterans to serve their communities and their careers. from professional certifications, to job training, to help navigating programs and services, we give veterans access to support from anywhere in the world.

joins us right now. david, great to have you with us? >> thank you for the invite this morning. >> the european stocks have been on fire so, where specifically outside the united states do you like? >> really, when you look at valuations, even though certain aspects of the european market have gone up and you see the drug companies in particular that are involved in the glp-1s, these things have gone up. but there's large areas within europe, in particular, if you look at german industrials and european financials that are trading in that really, really low valuations. these are businesses that have great exposure to what's happening all over the globe, not just in europe, but in asia and the united states. what you see is similar to the u.s. when we have this

bifurcation, certain sectors being at hugely elevated valuations. we're seeing this in europe. even when you look at the -- europe in its entirety, still trades at just 13 or 14 times earnings, growings at 7 or 8% and from a macro perspective we're starting to see acceptable european macro economic growth. almost converging on the u.s. and some countries in europe are growing faster than the u.s., like spain and italy. >> so, when do you anticipate those lower valuation stocks to catch up on performance? because taking a look at the oakmark international fund, it's underperformed its benchmark for the past one year, three years and five years. so, when should investors -- you take a look at the headlines, you're seeing stocks at all times highs in terms of the stoxx 600, japan, what sort of

environment do you need to see in order for those groups to catch up? >> clearly what you've even in japan is a euphoric market where the valuations have gotten well ahead of fundamentals. you have a market trading at 15 or 16 times earnings and the corporate sector that could barely deliver on average 9% return on equity. so, you know, we're valuing investors. we look at the price you pay for what you get. as per short term numbers has been underweight in japanese equities. the reason we're underweight is because the value proposition just isn't there compared to other places. places like europe or even in the u.s., incidentally, there are large parts of the u.s. market that are undervalued. the valued growth thing has hurt us. growth is very overpriced and overviewed today. and the opportunity are in value stocks and especially european

value stocks, and then you lay out -- overlay the currency where you have a dollar, which is a bit stretched, which makes foreign stocks and their home currencies even looking more attractive. because you're able to buy low priced businesses using undervalued currencies. yes, as you point out, it's been a headwind. but on the other hand, i like to say, when the rearview mirror looks foggy, the front windshield looks quite good. and i think going through this period of weakness means we have a good future to look forward to given where valuations are today and how we are positioned to take advantage of those low valuations. >> so, what makes the windshield look good, david? i wonder is it a potential global easing, coordinated easing cycle that will help these value stocks get a jump

start and catch up to the growth? >> it's more micro than that. certainly you'll see some easing. you saw the ecb cut 25 basis points. it's more micro than that. what i mean is corporate performance, cash flow earnings are growing high single digits, and we're starting to see, in europe in particular, greater shareholder distributions. if you look at the percentage of cash flow that's going to shareholders in terms of dividend yields and buybacks, i think there's no place in the world where you see and have more shareholder distribution pro activity as in european equities. eventually the world will catch on, that these businesses, european financials, european industrials, companies like mercedes and bmw, ailance, these companies are throwing off greater than 10% of their market

cap and cash back to owners. in an environment where people are still searching for yield, especially in equity markets, these businesses are doing this exactly what they're supposed to do. >> right. always great to the get your thoughts on the international fund. thank you. >> take care. thank you. with nvidia shares down ever so slightly, the market value, as we like to keep track here on a minute-by-minute basis is a bit below apple. you can see the broader markets are higher. ever so slightly as well. our live market coverage continues right after this.

every day, more dog people are deciding it's time for a fresh approach to pet food. developed with vets. made from real meat and veggies. portioned for your dog. and delivered right to your door. it's smarter, healthier pet food.

good thursday morning. welcome to "money movers." i'm carl quintanilla with melissa lee live at post 9 of the new york stock exchange. first up, the broader markets, s&p, nasdaq with some new records. this week, stiefel did call for a 10% correction in the s&p by q3. chief equity strategist will lay ou