the two-year at 4.847. in the energy complex, oil, wti crude, you can buy it by the barrel, 77.69. >> bitcoin down 4%. >> it is down about 4%. make sure you join us tomorrow. "squawk on the street" begins right now. ♪ good tuesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. monday's closing high for s&p, nasdaq. the fed meeting begins today. the market shifts its focus from tech to the macro. our roadmap begins with apple joining the ai arms frenzy. big potential boost to the tech giant's product cycle, but is it too late to the game? >> el lie lilly's alzheimer's drug gets unanimous backing in

an fda add voois viezry panel. general motor authorized a $6 billion stock buyback. >> the morning after wwdc, apple unveiling what it calls apple intelligence to add ai features to its products, bringing open ai's chatgpt. the stock did close down almost 2% in yesterday's session, although, jim, moelis says don't be fooled by the sell aught. >> he and i have pretty much agreed. i talked to tim cook, ceo, you have to say, all right, you put all these things together, tie them together. unless you owe the pro or the pro max 15, you're going to want to upgrade. do you want to have your own emojis? of course you do.

i send emoji with sunglasses to my kids all the time. enough! i want to be more personalized. when your daughter graduates from high school, i want to have cap and gown. >> more personalized emojis, i'm sure that will sell more iphones. >> you want to get the vision pro, and i know you don't. you get 3d pictures of people who may have passed away that you get to be with. maybe you probably think i'm reaching. >> i think that makes sense. >> show me all pictures of me, jichl and david out at night. >> yes. >> it can do that. >> i think that's terrific. >> us in the clubs? >> yeah, yeah. hear me out. let's say you're doing an interview with someone or you want to talk with someone, it listens. i'm taping you. and it spits out a transcript. >> that would be helpful. >> i've seen the notes you write, secret notes you write from people i'm not allowed to

talk about. boom, this is it. there's a lot of little things that add up to something incrementally revolutionary. >> privacy has always been an important component of what they're bringing to consumers. you feel like that continues to be the case with what they introduced yesterday? >> i think there's an assessment that goes on among younger people which is no matter what they sell your data. that's what they do. they say your data will be left with you, that means they sell your data, typically to bad guys who are hackers. but apple doesn't do that. it's going to be residing on apple, and i think that's a very big difference. >> some people say they're selling you down the river, i think is the phrase. >> those people are cynical. those are the people who say the lilly alzheimer's drug will not pass. they'd make a lot more money if they could sell your data. it would be great.

you do siriand you say, wake me at 3:30. they have something that goes on at 3:30 that's a program, like cnbc uk. >> or cnbc europe or cnbc asia. take your pick. >> put on cnbc. >> you also made an important point which is a lot of the compute power is going to reside in the device i guess. so what are we going to get, and are we going to get more unveils from apple when they introduce the next device when it comes to ai? >> i think it's pretty clear that it's not just going to be open ai. i think it's self-evident it's going to be gemini, too. there will be a situation where they say, listen, we or not going to let anybody do it. >> i was referring to the elon musk tweet where he calls this a security violation. >> samsung here we go.

>> it was interesting. bofa with a note on alphabet, stock closed higher yesterday because in their view some of the partnership details were not as robust as exactly. >> exactly. tim confirmed we're going to have many more announcements about who is going to be our partner when it comes to apple intelligence which, david, is why right when it was announced that they were going to go with open ai, alphabet's stock soared because they realized, well, it's not one or the other. >> right. it leaves open the possibility. >> how about elon -- is this bordering on petulance? >> typical for eli. >> he said apple is not, quote, smart enough to build their own ai. gemini is exactly -- it is their own ai. >> he's a little con seated.

you think he has 90% of the retail is going to vote for him? what do you think? >> i think for the compensation vote which we're two days away from, two days away from the annual meeting for tesla, i think they're going to need a very large component of retail to both vote and vote in favor given the institutional vote when you count the index funds which are obviously not unimportant, are going to go his way. eli c 'if they used xai, i guess they would have been happy with that. maybe he's trying to pave the way to use xai somewhere down the road. >> maybe he loses the vote, goes to xai and -- erickson? >> the compensation vote. >> slg. >> i'm sure we'll talk a lot about tesla and that vote between now and thursday. yeah, the question, if they were to lose the vote on the

compensation award that was voted on in 2018 but revoked, if they were to lose that, you raise interesting questions. would he do anything or just business as usual? it's not as though he doesn't have a lot of economics at stake here, jim, to begin with given significant ownership. >> he said over and over again if he doesn't have a certain -- 25%, what's the point? that's not petulance, by the way. i understand stand you have a contract. how can they revoke a contract? what is that? what is that. >> what is what? >> you look at different things. >> i do look at different things. i do follow elon as millions of ear people do. i haven't heard from him likely. i'd like to. if he wants to do an interview prior to the vote, i'm happy to do that. >> open invitation. >> open ai invitation. >> we'll do it on the x platform. that's his rule. >> apple.

>> you mentioned vision pro a moment ago. a piece in the "times" can apple salvage vision pro as one sits on the self collecting dust. >> i used to write obituaries for a living i felt after reading the commentary where that would have been one where i would have said what holmes is going to be at, and they could send well wishes to the family. it was horrible. i feel -- >> it costs $3,500. >> it's going to go to china and a lot of other countries. >> it's going to go there. >> china, hong kong, canada, france, uk. you can pre order at the end of the month. >> it still costs $3,500. >> i'm not writing the obituaries. >> all our viewers know how you feel about it. underutilized as a tool in the enterprise to quote and recap -- >> there was no jensen huang. yesterday before i interviewed

enrique with hp, he send the obligatory picture of me with jensen huang. you have to. there was no jensen huang there. >> yesterday. >> no way. >> you need a little jensen. >> anything related to ai, jensen has got to be around it. >> no kidding. >> even if he's just dancing in the background. >> doesn't matter. >> no. >> nvidia probing the trend. today goes to 150. >> there was nothing in that, but that's okay. my work has shown that over and over again there's three days a term where you say what's going to happen. people are willing, david, to sell 3 out of 10. that's been the pattern. >> but jim, here we are, day two of the reaction. look at all the analysts who weigh in. announcement of apple intelligence was a bit disappointing relevant to

expectations. barclay's sees no surprise after stock performance leading up to it. morgan stanley, slightly ahead of expectations. intro could stimulate a significant iphone upgrade cycle. >> there it is. look. i think everybody who has something below -- a 15 or below is thinking, you know what? maybe it would be cool. let's say david were to go buy it and he showed me a feature, something i don't have, something like that. then what would happen is i would say i've got to get that. how much did that cost? >> no. i got it free through t-mobile, mike sievert. i did that because you know there's a comcast downgrade. >> i didn't even see that, jim. even if i had, it would be unknown. >> save it for the d. >> actually i think we've been sufficiently critical of our

parent company. i'll save for for the 11th. >> when we come back, more movers to get to this morning including gm announcing a $6 billion buyback. we'll talk cpi ahead of the data in the morning. one more look in the futures as the market kornts to raiemn range-bound after yesterday's closing highs. back in a moment. ♪♪ ♪♪ chewy, a citi client, uses citi's financial expertise to help drive its growth and keep its supply chain moving, so more pet parents can get everything they need... right when they need it. keeping more pets, and families, happy. ♪♪ for the love of moving our clients forward. for the love of progress. ♪(voya)♪ there are some things that work better together. like your workplace benefits and retirement savings. voya provides tools that help you make the right investment and benefit choices. so you can reach today's financial goals and look forward to a more confident future. voya, well planned,

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markets on track for a lower open today, a day after record closetion for the s&p and nad dak ahead of tomorrow's cpi number and the fed decision. jim, a lot of charts about narrowing breadth, lack of confirmation from the ad line. >> yes. i don't know if you saw that interesting piece from bank of america. it does indicate we could be in for some kind of regulatory action. i come back and say there's nothing new here. if anything, i think we can broaden out, in part because i'm watching -- let's say i know

semis are overdone. look at the broadening of semi. yesterday it was lamb and then kla. at the end of the day skyworks. skyworks isn't even -- there isn't anything that made me feel skyworks should go up. nothing in apple that was new. i think that there's this piece today about banks and oils and renaissance, wouldn't that be something if the banks and oils moved? >> i know you mentioned or maybe were complaining about dupont's price. >> what do they have to do? i look at dupont. there's ed breen. he didn't fall off a turnip truck. >> he's been around a long time now. >> -- let me tell you something. he is running it, like tyco. the stock is unchanged since he

announced the breakup. you think that makes sense? >> i'm not sure, but i sense that you don't. >> i don't at all. i think this is a steel. >> what explains this reaction? >> you want id yeah see? on friday i told club members, there are people saying it's a very narrow -- lilly has a narrow approval from the fda. first of all, it wasn't approval from the fda. so that was completely wrong. but second was the most wide approval possible. that was an example of stupidity at work which is allowed, the fire departm first amendment, they never had a problem with stupidity. you know what? hey, dupont, why do we have to accept that the action is ever right? >> we don't. >> there's dupont again. we were looking at lilly briefly. >> i would come back from nvidia

headquarters. david would say, you know, jim, i'm really tired of hearing about nvidia. stock was what? 3? >> did i say that? are you making that up? i never said that. what i might have been tired of is trying to understand what you were explaining when you kept talking about simulations and the ability to build the digital t twin, and you would lose virtually everybody in trying to understand what you were talking about. i never, never said i'm tired of hearing you talk about nvidia. i can hear you talk about it all day long. >> really? your mother told me that. his mother was all over nvidia. >> she was not, sadly. i wish. i wish. i wouldn't be sitting here. >> i did think that it was shocking to me that the stock didn't go down more yesterday. that is not the usual behavior.

there are people who stilt want to get right with jensen. i don't know what it's going to take. what does he have to do? yesterday i talked to renee haas and the arm chip is in the new apple device. nobody cares because jensen is not in the new apple device. frustrating. >> are you on alert for oracle tonight to say something about the software model that might not be positive? >> i don't think oracle is going to say a negative word about anything. i think it's going to be 100%, we're the data center team for the world. >> like southwest says about the airline business? >> ooh. their release yesterday -- >> my favorite line on that was, look, we're doing great except for the financials which is the equivalent of, as my nephew and head writer and only writer said. really, how was the play, mrs. lincoln? >> you're referring to the response to elliott, the letter from southwest. >> yeah. it was our american cousin.

did you see any of it in "manhunt?" >> i didn't see the play itself. >> you don't have to because you saw the release. >> i did. they said they're confident they have the right strategy and the right plan and the right team. >> but they don't have the right stock price. >> not yet. >> how do you like the fact that it was a midnight surprise, sunday? a sunday call, southwest -- >> yeah, no. i don't have any thoughts. >> not you. i'm saying that's what elliott -- it was a surprise call. >> but that happens. that's what you do sometimes as an activist. you play it differently for each company. different strategy, texas instruments versus southwest, versus whatever may be coming. >> david, do you hear music? >> i do. >> all right. >> the first time he's ever heard the music. >> exactly. we'll get dave's take on the paramount move from yesterday. we'll get cramer's "mad dash"

and countdn owto the opening bell. don't go anywhere. my promise to you is simple. as a fiduciary, i promise to put your interests first, always. i promise that our relationship will go well beyond just investment decisions. it's the intersection of your money and your life where we can make the biggest difference. [announcer] charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

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owning bell on this tuesday about seven minutes from now. trade desk we talked about off camera. i was shocked to find out, you're talking about a market value here of some $45 billion. so why is it in your "mad dash" and what do they even do to deserve that kind of a market cap? >> you're netflix and you this advertising tier. you have inventory, but you don't know anything about that. you're a company that makes hit men, okay, won't give it away. what bothers me is people don't ream liepz you give at the trade desk. this thing is just a juggernaut. here is something -- i know you care about cable a lot. streaming is now 38% of tv share. when it gets to be 110%, what happens to you? netflix announced new partnership with trade desk. nbc universal partners with trade desk for the paris games. disney plus, trade desk.

roku -- jonathan, are you listening to this? all these people, they are not going with google. remember there's a lawsuit about it. >> a suit by the justice department -- >> comes on our show regularly -- not. and i do think what happens here is this is the end of their anti-trust case. >> because trade desk is winning all these contracts. >> if i were alphabet, i would wonder whether maybe trade desk has an ad monopoly on all the new streaming properties, because they keep winning. jeff green keeps winning. jeff knows alphabet had been a tough company as an advertising representative. this just win, win, win, win, win. remember, this is the fastest growing part of all advertising in the world. >> right. >> you're not going to talk at all about cable. i can't get you to talk about cable. >> what would you like me to say? by the way, the business is broadband. broadband brings all these --

>> the business is theme parks! >> -- streaming services to bear. when broadband turns around, that's what moves the business. >> i'm just saying these numbers are incredible. >> i'd love to see a longer-term chart? can we get one before we go away? looking at ten years, five years, eight years? >> there it comes. well, people at home -- anyway, streaming is -- >> there we go. there we go. >> that's when you felt -- >> this is when you felt that maybe alphabet owned the thing. right now the ascending player is trade desk. i don't think it's done going higher even though it's up 30% year-to-date. i think 20% growth year after year. i think it's the one you want -- >> we've got opening bell just a few minutes away. you can catch us any time anywhere by listening to and following the "squawk on the street" opening bell podcast.

i was three months old when it started. i was six years old. they said, "don't tell anyone." i needed help. they took pictures and videos. the images of me have been found over 36,000 times. they're on icloud now. i just want them gone. i think about the pictures and the videos a lot. the abusers who watch them. save them. or share them on icloud. apple could help us. but they don't.

the meme rally continues to lose some steam. gamestop is lower in the premarket after two days of losses. stock down about 50% since roaring kitty's live stream on youtube in the middle of the day on friday, jim. what's that mean? >> well, if i were selling this at the market program where, if he completes it, the stock will go back up because then he has the possibility of becoming a different company, buying some property in the mall that's adjacent for all i know. this atm is really important. i think if you go back to keith gill's presentation, he did say at one point, he actually addressed the company as being, this is very important, this fund-raising. >> one of the least compelling things i've ever seen. >> you're completely wrong. you're so old. >> i'm not old. i'm sorry. i'm still a human being on this planet. come on, man. he said nothing. >> he addressed his friends on reddit. they all got a kick out of it.

they thought it was great -- [ cheers and applause ] >> david doesn't understand the younger generation. [ bell ringing ]. >> atfirst horizon celebrating years, a data streaming platform celebrating its third anniversary. >> when i see the ceo is with the people, brian jordan right over there, remarkable ceo. he's been on the show. david, you remember the tv -- tv broke the deal with these guys? >> i do remember that, yes. >> this guy is the real guy. he's right there. >> really a good deal to see the ceo with people. >> i think it's interesting to see the ceo down here. >> i like that. i like that. >> pimco, by the way, does have

a bit of a warning today about regionals, saying the real wave of distress is just starting given the very high concentration of commercial real estate still ongoing. >> also huntington bank yesterday really brought things down. then just margin revision. i think we're all familiar with different buildings that we see short sales on. david, there are too many buildings and too many people -- >> do you know many people who actually come in every day to the office other than you? >> other than us? i do know a few people in financial services where that is the strongest -- go through all of them. blackstone, jpmorgan, goldman sachs. i don't mean to be leaving firms out. they're all five days a week. now, fridays are still tougher. >> friday is squishy. >> kind of like what macron has over there. how is he doing?

>> he's going to find out how he's doing. >> he did say today not going to reside no matter what the outcome of the snaps. moody's did say these elections might be bad for the credit outlook. >> i'm not political about this stuff. why don't you just go destroy your credit rating? we've done our best to destroy our credit rating with the ira. he's just saying, listen, anything goes. >> the spread between french yields and the rest of europe or german/italian spreads getting interesting. >> italian government is more stable than i thought. >> surprised on the stability side? >> the north is booming. north is booming. you want to get a place near milan. you go to the games -- >> i'll put that down on the list of things i need to do.

>> tell apple to remind you. >> go through the listings and tell me what the best place would be and then arrange the mortgage financing for me in lira even though that doesn't exist anymore? they would probably do it in lira. >> once your friend has a 16, you're done. my daughter is a five. >> you see the bold case on iphone revenue out of moelis? 20% in fiscal '26. >> i love him, but he used the super cycle. i hope he doesn't jinx it. we had the coal super cycle, not as super as you think. >> by the way, d.a. davidson upgrades apple today, 230. they're calling this an analog of when we went from napster to itunes. >> i read that. it wasn't a bison pick.

i like a bison pick from those guys. no. i do think -- look, i remain -- i'm not deviating. i think the most interesting thing today that's happening is eli lilly was up 30 last night and now it's done. >> lilly is down. i mean it's flat. >> right. >> but that was all in the market, the approval for the alzheimer's therapy. >> i think you had this big jump yesterday for people who realized the discussions were all very positive. i know that, look, obviously two components. novo nordisk mysteriously down which is like, okay, what's really going on? i thought yesterday when they spoke at goldman and talked about the pill next year, that was president revelatory but people thought it was

revelatory. >> largest company -- is it the largest company in europe at this point? >> astrazeneca is a better drug company than they are. i really like astrazeneca. >> on tesla, we mentioned it briefly when we were in the discussion about apple, the stock is not doing much. we should start to get some read, at least the votes will start coming in from the large institutions later today. right now it's still too early to say. i'm talking about obviously the important vote on elon musk's compensation plan. don't forgetthere is also a vote on reincorporating the state of texas. as i've said many times, that will require majority of the votes outstanding to be in favor. so you need 15.1% of the outstanding votes. a bit different than what you need for the compensation plan which you just need to win. obviously musk can't vote his shares. big institutions are going to be

the key. retail obviously will be broadly supportive one would imagine, and that is proving out to be the case i think, at least based on some of the early reads here. >> he has to take how much? huge percentage. >> like 90%. >> you think that's possible? >> i think so. i think so. >> okay. >> the index funds are not expected -- we've heard from only others. again, they may not be that large a shareholders, whether the cal pers, the sovereign fund of norway voting against, i think it was cal pers or was it cal centers? i don't want to confuse the two. >> calsters, excuse me. on this vote. >> look, i'm concerned. i think there are people -- there are people who just think, you know what? he doesn't deserve it. i don't know who these people

are. they're the people who bought it at 210 and bought it at 230. >> you're dealing with a shareholder base now versus a shareholder base then, a target price almost impossible to reach. now you're looking at significant dilution. why would i want to pay that if i don't have to? >> if you bought it at 250, are you going to vote for it? >> no. >> that's why your 90% may not be right. >> baird out with a note saying they do expect it to pass. jonas at morgan stanley reiterating ford topic on their ev strategy shift. >> i love jonas. i thought there was absolutely nothing in his note. this is a day that gm is once again proving it knows how to prove the stock with the buyback. mary barra is fed up with the pe of 6. she won't stop.

she won't stop until that stock is dramatically higher. she gets zero credit for what she's trying to do, which is make a lot of money for shareholders. >> meantime, bofa looking at corporate client buyback. last week biggest weekly volume since 2010. >> really? >> yes. as this window has been pretty solid on the buyback front. >> that's very, very positive. in the meantime, i was reading companies, once they're booted from the s&p 500, how they do. they do very, very poorly. comerica now yields 6%. old-fashioned bank that's done well. suddenly it's like see you later from the s&p. the s&p, they've been very active. they're the most active passive fund in america. >> yep. the most active passive fund. >> they kicked out robert half. you're not doing well.

let's bring in crowdstrike. let's get-go daddy. well, they added kkr. >> you seen the co-dadly chart? not too shabby. >> who am i to criticize go daddy. look at that. >> small business, we didn't mention nfiv, jim, highest independent business survey reading of the year. more firms looking to increase capx, expecting a better economy, seeing easier credit conditions. >> when you tweeted that, i said to myself, you're the fed, and you've just got to be like, wow, we've got to be -- we have to be longer forever, not longer for for long, but long, long, long. like long may she run long, like neil young long. >> affirm is up, about 6% on the

am news. let's tell you what the news was. affirm payment products expected to be available to apple pay users in the u.s. that would be later this year. so you will be able to check out online or in app with apple pay on your iphone and ipad and apply pay over time. that's helping affirm shares. they did say, though, they don't expect the partnership to have a material impact on revenue or gross merchandise volume in fiscal year '25. >> where is goldman on the card with apple? >> on the credit card? >> yeah. >> i don't know, jim. >> i think they're like, can we please be finished with this aspect of our existence. >> the apple card hasn't helped? >> give it to affirm. give it to affirm. maybe affirm will take it. it's already built out, right? goldman doesn't want to be in that position anymore. >> yeah. >> goldman wants to be in the high net worth business, like they were when they were

ascending. ever since they decided to do this, the stock has been a horse. it's been secretariat, honestly or affirm. >> affirm. >> affirmed. >> that's good. >> seattle slew. >> you guys need a place in milan and your own horse. >> never on horses? never got into it that? >> i had horses, but they were old philadelphia police horses. >> oh. >> they don't race well. >> by the way, how are the cows? >> oh, my god. have you seen my new pictures? look at that. it's maisie and daisy. by the way, maz zee just had a

pull. >> there's going to be like a porterhouse coming. but no, no. once it's named, you're a goner. >> i'm trying to think of a segue -- >> there is. bec because elonco came up with something so cows don't give off as much methane than we burden of proof. >> that's become an issue. >> we breed cows and we create more meth than. they have the solution. >> other calls might include shopify today. jpmorgan, an online sale you don't want to miss. initiate outperformed 74. >> i like that call. the stock has been relentlessly bad, kind of bombing here. finkelstein did a good job. he's not the ceo.

he's the president. >> this market still feels soggy. >> soggy? >> soggy. >> what does that mean? >> i don't know. >> being held down. like a wet rag. >> yes, i think it's held down. >> we have a fed decision tomorrow. might expect a quiet day. >> dupont is back down again. >> see the private credit note from piper sandler today? you see everything. it's not particularly positive. not seeing a lot of reaction in aries or apollo. they're all not moving. private credit default risk is rising. recovery rates are low. slowing lending, a headwind on normal activity. pressure credit spreads. there it is. bank c andi loans are contracting. expect private credit to follow. a lot of charts, by the way, as

well. all of which may mean nothing, but they do seem to be digging in on the idea that perhaps the best of times has passed. >> you thought it would be safe for private credit. >> i think the phrases, hell to pay. i have a hell to pay hashtag going and have for a while. >> everybody coming out of school will have private credit. >> they're not going to do anything. because soon enough, artificial intelligence will exceed our own intelligence. all human knowledge will be available to everybody and, therefore, it will be a levelling and we'll need some sort of -- i don't even know what's going to happen. >> i don't know if you saw the hubertys note today, jim, retailers who have this tech diffusion within retail where there's going to be some players that just manage the online/off-line inventory better than others. >> there's a real have/have not. i've got to tell you. i don't like this market. this market has got a bad feel.

>> coming off -- yesterday was the -- >> yeah. i just don't -- when you see stocks like nucor on the note that price is coming down. you see hospitality? private prisons. vernova, city didn't like that. a very negative positive note. filled with negativity. >> bank has to be one of the weakest sectors, jpmorgan down 2.5%, bank of america the same. >> except for axp. banks and utilities will lead you lower this morning. >> i know. how is nextdoor doing? kind. sarah is now the cfo of open ai. >> they're the banks. we await the fed -- >> this is what i'm talking

about, just a feel. that's a good bank, jpmorgan. >> it could all change tomorrow. >> we're anticipating what has to happen ala what you just said about the small business. small business should be just being crushed here. instead they're optimistic. >> well, on a sequential -- we know nfib has been historically negative about everything. >> that's true. i just look at the banks and saw it roll over yesterday. >> nvidia is up. isn't that all you need. nvidia is up, jim. >> ah. >> your dutch bros jim, the secondary. >> the secondary. these guys want to get out of this dog so much, it's actually a great stock. you see there's a convert -- >> i missed that one. >> a huge number of shares coming at you. this is just terrible. 8.6 million.

>> investor day today. >> that's a winner nextera. constellation energy, number one stock. that's all data center. >> i know we mentioned gamestop right before the open. do we know where they are in terms of selling those 75 million shares, as that continues -- >> no. it's a mystery. >> i guess i could try and find out. >> if you can find out, that would be great. >> how would you find out? >> make phone calls, something i've done through the years. >> probably keep your job -- >> can be an effective way to find things out. >> a good job when they come for you, the machines. >> might allow me to keep my job. might. >> i'll talk to jensen, see if we can't make something happen. >> license my likeness and my voice and just leave it at that? what do you think, jim? >> i've got to make a call,

david. let me see if i can't get him. it's early out there. >> it is early. >> we have lost some early steam here, dow is down almost 400, an 8-1 down day. we'll watch volume which has been exceptionally low the last few days. in fact, the four lowest volume days of the year have come in the last three weeks. >> is that true? >> yeah. >> the news follolow has been b. stay with us.

take a look at breadth this morning, not good, as we said. it was eight to one down, probably more than that at this point. 5330 being led lower by a bunch of financials and even travel names in there, as well. ralph lauren, tesla, among the biggest losers. it is down 371. jim is coming up next.

i can't believe you corporate types are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar.

i've got another one.

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cycle it doesn't end well. it ends badly, and this is still in mid -- i think it's mid downturn which is just very, very tough. i like this company very much. >> a read on reuters looking at deflation in china where they are cutting price on everything from coffee to cars as reuters puts it. >> i think that people have to understand that in terms of commodities, powell is getting his way. in terms of optimism, powell is not. that's the sentiment. look, i think that powell wins when you have everything go down in price, but then loses when there's still a wage growth and there are still people creating jobs, and i think he just wants it to be flat, but today -- we're going to get -- we're getting over with with what's supposed to happen tomorrow. >> and the decision. >> yes. i'm going to get david a vision pro and he'll have to understand that the obituary's too early.

>> too early for that obituary. exaggerated? >> it's going to be in china and france. >> it's very heavy, apparently. >> as for macron, which is going to be more let's say in the news. >> macron. >> interesting frame. >> i'm aware of what's going on. i just don't understand the question. >> like they'll want him to stick around. >> that is his bet. >> there is a 28-year-old guy there who is incredibly important, and i think that we should have, like, 22-year-olds. why -- >> the role of president in france is a powerful plot. >> he was what? 19. >> jim, what's tonight? >> coterra. this market is so negative it doesn't care. >> we'll see, we had a reversal. >> it's good to have david back. >> is it, jim?

[ laughter ] we'll see you tonight, jim "mad money" 6:00 p.m. eastern time with the dow down 350. stay with us. investment opportunities are everywhere you turn. do you charge forward? freeze in your tracks? or, let curiosity light the way.

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♪ ♪ good tuesday morning. welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla and david 19er live from the new york stock exchange. the s&p is down half a percent. every sector is lower except for one and that would be information technology not enough to hold up the major averages. the nasdaq is down a third of 1%. which groups are getting hit the hardest? utilities, consumer discretionary, industrials, energy all weaker today. so we're giving back some of the gains that we got yesterday. apple is notably higher by about

3% and some of the other sign security names are higher, but the nasdaq is down a quarter of 1%. take a look at treasurys this morning following some action in europe ahead of the big day tomorrow with cpi and the federal reserve. we're seeing a bid for bonds. the ten-year yield a little lower 5.445 and the two-year yield about 4.85. 30 minutes here into trading and here are big movers. the financials are in focus and they're the worst performing sector and a comercka, j.p. morgan, and apple up after unveiling the ai plans and more on apple ahead of the show. shares of gm are trading at levels we haven't seen since february 2022. the automakers board approving a $6 billion buyback plan. gm's stock up about 35% this year. guys, we start in europe again because i think that's where a lot of the action is. we dove into the political

surprises and they continue to push french stocks lower and french yields higher and that's kind of the center of the action today. another 1.2% slide for the major -- for the main average in europe. excuse me, in france and banks are the hardest hit in that market, as well. there could be spillover here into the u.s. the yields are higher, too. the rating agencies are starting to warn. remember, we talked about the fiscal precarious position that france is? and one of the uncertainties here for the snap election and it will be harder for macron to pass a budget including spending cuts which they'll have to do to meet the quotas. they have a 5.5% deficit. here's moody's. the snap election increases the risks of pifiscal consolidation and is credit negative for the country's a2 rating and why stocks and bonds are sharply lower, but it is a factor on top

of all of the political uncertainty here. there was a report, for instance, that macron would step down if he loses big. the government came out and clarified that that was not true, but i think it spooked the market. the party haven't put out their platforms yet even though voting will start pretty soon on june 30th, but now it's more just about we didn't see this coming. he could have waited three years. what was he thinking and what is the uncertainty going to mean for europe and for france? that's kind of the thing. richard hawes was on this morning, former council of foreign relations, and i thought he was sharp about how difficult it is for an incumbent right now in europe given economic will cha challenges and now security threats and concerns and what that might mean, if anything, for here in the u.s. >> sure. each country has its own issue. italy is opposed to migration

with different concerns. the center right did hold overall and has no immediate ramifications and you might suspect that iran's calculous with the upcoming presidential election where that office holds a lot of sway in the country of france. >> we'll see if his gamble is worth it and people don't know what he's thinking coming from a position of weakness to do this. the other factor here is the european central bank cut interest rates last week and now the question is how many more cuts will they get away with this year? the markets are pricing in two more and not getting too excited and there were comments from ecb president christine lagarde and she said we are not following a predetermined path. there could also be phases in which we leave interest rates unchanged. she successfully talked the market into thinking every meeting will be a cut. look, they have to monitor inflation just like the fed and the key question for the fed tomorrow is going to be how high

does the bar seem for powell right now to be cutting interest rates and is it enough that we started to see some weakening data for instance in the labor market although not too weak judging by last month's jobs report and some better inflation data although not too much better and we'll see what we get from cpi and those are some of the questions i think that will be on powell, the powell agenda tomorrow, and he's also going to release the dot plot which is always exciting. they haven't done this since march, and it shows how many rate cuts they expect to happen this year. they've had three this year in march, and that's going to change and the small business sentiment was notable today and it's still historically very weak and these are the amount of small businesses raising average selling prices and we're all obsessed with inflation and it's come down sharply and we're not at pre-covid lows necessarily yet. we also have a chart looking at

how the top problem is for small businesses in this country and inflation is still, by far, the biggest problem and certainly much bigger than poor sales although it's coming down. so let's get more on the fed, the move in rates and what's playing out in the market. our next guest is in charge of corporate credit at goldman, america with the multibillian dollar financing. johnny johnny fein is back and what a good day to have you. i don't even know where to start. let's start with the rise in yields, what do you think the concern is? >> the news out of france and there's uncertainty as to how it plays forward from here and we're not going to go into the week of july 4th and it's created havoc in european rate marketses and i don't think there's been a spillover marching toward the global stage. i'm not convinced that what we're seeing play out in gyrations in u.s. markets is particularly driven by what's

happening in france, but it's one of the out of left field factors that's come in and started to derail sentiment on the other side. >> is it just the political uncertainty here or do you think there's fundamentally being questioned about if europe does shift to the right what sort of economic policies does it get? >> they're certainly part of that. i think for sure, the tales have gotten fatter over the course of the last few sessions, but i don't think this is doom and gloom. i think this is one factor, and i think it bears watching very closely. so we're not going know more for several weeks from here, but people will start to prepare themselves for various different outcomes and therefore contingencies as a result. >> the other thing it says to me is this was the year of elections globally and we're moving the marks and we see it in india and the mexican peso still trying to process that election. of course, we look to the u.s. and wonder whether that's going to be a big market event, too. >> yeah.

it almost certainly will. we'll tend to see a drop-off in liquidity in the run-up to the election, and as far as rates are concerned, to me it's interesting so there are three to four outcome scenarios that create outward pressure on yields in the u.s. so when i think about the three major policies that can do that, it's fiscal policy, and it will be expansionary in the unified government no matter who wins, and i think both trade policy and immigration policy will be hawkish in a trump administration whether it's unified or divided. from a trade perspective, i think that means tariffs which are inflationary and from an immigrationperspective, its potential impact on the labor market and whether or not we see wage price inflation and shortage of workers in the u.s. economy. so three of those four scenarios, the other obviously being biden and a divided congress are likely to be more

inflationary and place upward pressure yields and we're seeing lots of people manage the three out of four outcome as a report. >> a suite by other side would be market negative, you think? >> i think it would be for the treasury market because i think it's fiscal expansion and therefore the same trend that we've seen. postponement of cuts, higher for longer and the environment that we've been in for the last couple of years. >> we've had a couple of different chapters in the thinking about prices, right? we had some soft labor surveys and then we got the jobs number and we'll see what retail sales and cpi bring. is your mind changing week to week or what is the -- smooth that out for us? >> i think the fed has been remarkably consistent. th they said that we'll be patient and the pressures have genuinely abated and the picture is mixed and we've had the equity market

gyrations where the picture is mixed. you're right. you pointed out and some of the data you pointed to is softer. ism, adp coming in weaker and anecdotal evidence leading to ceos might be indicating that yeah, tighter monetary policy is now starting to bite, but then you get the pay from last week that turns everything on its head. so you have this mixed picture, and i think that will just allow the fed to continue to follow this patient mantra. >> john, i'd love to come to the corporate bond market for a moment and i was looking at a piece from piper sandler and they have what is a fairly negative view in terms of issuance, and bank lending standards which they show are getting lower, growth in the volume outstanding corporate bonds will likely stay low. do you agree with that? >> well, i think that 2024 has

been a year where corporates have looked to get ahead of potential risks that may emanate into the second half of the year. so you've seen with the absence of 2020 which was a very special year from an issuance perspective, you've seen the fastest start to investment grade issuance in the u.s. and quarterly. >> the first quarter was record breaking. >> the first quarter was off the charts. in the high yield market wruf seen significant, elevated volumes and that was taking place in the loan market, so i think our view overall is that a lot of the financing that has taken place in 2024 is somewhat of a pull forward from what might have otherwise taken place in the back half of the year. i think it's just sound, risk management by corporate america so i tend to agree and issuance will run with a lower trend rate and probably the lower trend rate from 2023 from here on in. >> is there still a lot of action from europe because up

until these political risks that was where the lower rates and the ecb cuts were happening. >> it was part of the playbook for corporate america and if you look at the volume of issuance from u.s. companies in euros in 2024, we've seen more in the first five months of this year than we saw all of last year and on average, ten-year yields have been around 200 basis points lower so companies have been looking to take advantage of a lower yield as part of the playbook for how they managed with the interest expense as a higher for longer. >> i'm curious how you see the competition in investment grade business. >> there is a lot of what he's looking for investigate-grade assets and that is creating security on high yield balance sheets and structured finance, but i don't see it as a competitive, public, syndicated bond market in 2024. you mentioned the high-yield

mark and the neng you run, specifically. average match irities of 4.9 years and that's a low. so there is a war coming up over the course of the next few years that people are very, very focused on, but if you look at the constituents of that wall, the significant preponderance of the debt coming due is some of the highest quality credits in the high-yield market that will be readily available to finance themselves. so i don't think it's a significant concern. there's a lot of road to tread here, but i don't think it's something that i point out as being a significant factor for markets more broadly. >> we have an auction, and not a big one, later today. you and i have talked about the risks around options and demand. have those been quieted given we've seen decently successful one or that becomes a risk also running into the election? >> i think it definitely becomes

a risk in the coming 12 to 24 months and that's when it gets under way and the attractiveness for cash deposits starts to be a little less alluring. the reality is there's so miuch demand, in america in particular that it needs to get could be sopped up by shorter match areities and as a result, i think the pressure on the longer end has been less than it otherwise would be. >> i worry about it more from two perspectives and one is that obviously, that's a pretty high interest expense burden for the country to be carrying, but secondly when the curve does ultimately move and steepen up, when we get to a cutting cycle, then if the issuance remains in line with what they are today, then that will put further pressure on the curve. >> this is why the view and the playbook out of goldman says it

might soon go to longer duration. >> i think so. there will be risks out of the curve and we talked about it from an election perspective and what supply might look look in ongoing treasury financing environment, but look, out the curve, we still see a lot of annuities being manufactured and pension fund derisking and that translates for fixed income assets. >> well, johnny, thank you for joining uses on a big macro week. johnny fein from goldman sachs, and we'll have a lot more talk about the fed and the economy later this hour. former st. louis fed president james bullard will be our guest. >> as we go to break, let's take a look at road map for the rest of the hour. wall street is weighing in on apple's aai day. >> and what was the best day since early february and energy is the best performing sector for this month and the quarter. we'll give you a closer look at what's ahead for that group.

>> also exclusive results from the cnbc fed survey and what investors and strategists are saying about valuations in the market and their s&p targetses from here. "squawk on the street will be right back. the dow's down 288.

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apple intelligence. it includes a complete overhaul of siri, chatgpt integration and iphones and joining me is evercore senior managing director that covers i.t. hardware and communications equipment and has an outperform on apple. amit, it's great to have you back. thoughts on yesterday and i guess, are you impressed by the reaction of the stock which typically doesn't do well on d.c. days? >> impressed by the stock reaction. there are things that stood out yesterday. one is the apple intelligence at the launch. there's a lot of stuff that they'll do like summarizing emails and messages and prioritizing things and the biggest thing is siri may eventually become what they told us that it was going to be which is using apple's own device which is great for security and partner with chatgpt for some of the workloads. siri can truly do what it's supposed to do the way they kind

of of envisioned it and apple intelligence would only work with i-15 pro-models and that could trigger a sizable upgrade cycle for the features that come out with this are attractive enough for the user base and something that's really big. the partners with chatgpt seems very open ended which means there is a potential for apple to monetize safari the way it soared in the ai world and potentially having a default option on the road. >> a lot of chart going on, amit, about what generation of iphone is currently held by the installed base, whether or not that would drive this craving to upgrade. what is your bull case doing right now for fiscal '25 or '26? >> by the way, this will only work with iphone 15 pro and not even the other models that are out there. our estimate only 5% of users can probably use apple intelligence with the device

that they have. if you look at apple's install base, this is the way we look at it with 6% revenue growth, but every month of the replacement cycle which is 41 months right now, you can add about $6, $7 billion of revenue and historically in a super cycle you shrink about four months which 6% revenue growth the street could look at 13%, 14% and you can look at $9 on a 30 multiple which is where the stock typically trades at is 270 in our opinion right now. >> you say this is a unique apple approach to ai, and i wonder what you mean there. personalized ai features so what makes this uniquely apple? >> two things that are unique to apple is a secure manner and we can debate whether others will do it the same way or not.

it has a lot personal information. when siri creates, and you tell siri send pictures of the party last night to my spouse and it knows who to send it to and what pictures to send it to and others can't do that well. siri becomes a personal assistant they talked about and it has the data and it can do it in a very secure manner on a device and those are the two things apple will do that's unique to them that others will not be able to replicate. >> amit, i am trying to understand what it means for the next generation device in terms of being able to run this on the device, the llms, is there going to be a need for more compute power? is it going to make the device a lot more expensive than the last generation? >> it's a great point. i think potentially you'll end up with a scenario that they'll have an a iphone or something better than the ai models which will have a better processor

which will help you drive these -- and respect reduce the allegiancy and it will drive a higher price point and you'll have to gravitate to the u.s. models which by default it will be 10% to 15% premiums to the base models anyway. >> finally, amit, we mentioned this piece in the times by kevin ruse who has the visionpro and still struggling to find reasons to use it. is it just the sign of an early chapter? >> listen, i think visionpro was meant to be for the developers and it came out to all us in the masses. you need the ecosystem to be built around it for people to find usefulness around it, right? you need that and a better battery life and the vigdz pro is three or four years away from prime time, but it is making spaces in the areas moving

forward. >> pretty interesting. we'll see how that develops and they mentioned it with a ton of other things before they got to the ai news. thanks. >> thank you. >> still ahead, energy coming off a rare day of gains and it still is the worst performing sector on the month and the quarter. are there names worth buying on the dip here? we will discuss. don't go anywhere. 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. you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. boring makes vacations happen,

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wti seeing its best day since february. brent, its best since march and tough for the energy sector overall. let's go to pippa stephens who has been tracking the action and can fill us in. >> oil is pulling back although brent is holding above the $81 level and nat gas is back up for the first time since january. goldman saying 75 is a floor for brent with the firm forecasting a rise to $86 in the third are the kwaer on the back of strong summer demand for both transportation and cooling and ultimately they see the market pushing to a 1.3 million barrel per day. growth has outperformed and

services names like halliburton and slb among the biggest losers perhaps due to fears over what consolidation means for services companies pricing power. on the flipside, marathon oil, the clear winner here following the conoco acquisition with target resources in eqt and also rising on the back of stronger natural gas prices. wolf research looking forward said that energy's overbought consolidation is set to reverse and it's approaching an area where it could find its footing and reaccelerate. the firm said to fade, tech and buy energy saying it's the trades that cause you to roll your eyes that end up being the most profitable. sara? >> pippa, thank you. after the break, exclusive results from the cnbc fed survey. what investors and strategists are saying about valuations in this market and what they think about the outlook right now for rate cuts. plus, former st. louis fed president james bullard will join us with prediction, as well. don't go anywhere. i grew up in a time where we

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the street." i'm contessa brewer with your cnbc news update. the jury is now deliberating federal gun charges against hunter biden today. the panel resumed deliberations this morning after they were handed the case yesterday afternoon. they deliberated for just one hour before they were sent home. the president's son faces three charges for applying for a gun while allegedly using narcotics.

malawi's vice president and nine others have been confirmed dead following a small military plane crash yesterday. the president of the southeastern african country says the plane went down in bad weather in a mountainous region. they were attending the funeral of a former government minister and secretary of state antony blinken announced $400 million in humanitarian aid to gaza and called for other country in attendance to give money to address the crisis and it urged israel to do more to prevent civilian casualties. sara? >> okay, contessa. cnbc out with its latest fed survey, a poll of some of the nation's topmoney managers and also investment strategists and professional economists and mixed picture when it comes to the back half of the year. our steve liesman is here with the numbers. steve, what did it show? >> good morning, sara. the reescent run-up in the mark

are overvalued for a soft landing scenario and it is more hawkish for fed rate policy. for the end of the year they're averaging a number and the 29 respondents are below the current level and then a kind of paltry 2.9% return over 2025 up to just 5521, but this group has been pessimistic on stocks and pretty much wrong about it even though they're pretty good on interest rates. the fed is seen coming down with 20 basis points and unclear of what happened to the yield curve and touched more next year. the probability for the soft landing about 50% of where it's been while the probability of recession at 31% and that's the lowest level we've seen since early 2022. how about the expectations for the fed and 46% probability on a rate cut in september and 62% on a rate cut in december.

both are down from the may survey and both are a bit below the market pricing. 5 5.01 is for year end. and qt pushed to march by respondents and it had been 2025. inflation is kind of paradoxically and the fed cutting rates too late is number two. presidential election is seen offering some downside risk and of course, fiscal deficits in the number four spot, chairman and chief economist for hugh johnson economics writing it it would appear the members of the fomc are holding to a higher for longer approach to interest rate policy and could easily hold interest rates too high for too long and the risk of ms. takes remains somewhat high. the risk for the forecast is more hawkish and the concern of the fed being too late has risen which adds to the risk in a market facing uncertainty and

sara, we asked folks about whether or not they thought it was a good idea to lower rates because real rates have gone up because inflation's come down and most say not even though that was the same rationale used by christine lagarde for her recent rate cut along with several fed officials that said that a couple of months ago, but you don't hear that so much anymore. >> thanks for that, steve liesman this morning. the fed is expected to hold tomorrow. our next guest says it justifies a cut and joining us at post 9 is former fed president jim bullard. great to have you. >> great to be here. >> there was a point earlier in the year where you said it might be smart to cut sooner, but slower. do you feel the same? >> yeah, i do, but it's kind of a subtle point. so i don't know if that's -- i would like the technical adjustment idea a little bit more greenspan in. you would take onboard the fact

that inflation came down a lot in 2023 and you'd make some adjustment without promising too much out there in the future, but there wasn't really a moment for the committee to do that so they've stuck with the higher for longer. >> do you think they'll continue to? >> yeah. now they're going to have to see further progress on inflation in order to make a move and it's not that clear that we're going to get it, but maybe we will if it resumes -- if disinflation resumes in the second half of 2024 here and it would look to the next inflation report including one tomorrow. >> steve mentioned other central banks. does that put pressure them to follow suit in any way? >> i don't think so. i think the ecb got burned here with their move. they committed pretty early and the compromise on their committee was that they would go in june and then in the run-up to the meeting you have data going the wrong way and they would have been better off

postponing a bit if they'd had their druthers so now they'll have to manage that going forward. the mofc shouldn't be prufing on the day -- >> the data is so -- it's kind of up and down and it's not like the disinflation is completely reversed even in the united states and even in europe and not sure she got burned. she's managing. >> you're moving in a more dovish direction where you're upgrading your inflation forecast and your inflation outlook and that's the juxtaposition that you don't want and my experience on the fomc was that the committee gets in trouble on those kinds of moments because what is the market supposed to think? you can do things and what's america supposed to think -- >> that's like saying what the markets are going to think which

is as a whole which is where the ecb has been and it's not clear. you have to be data dependent ask do you want to be updated to the third decimal point? probably not. obviously, we can't measure things that accurately and it's a mistake to try to overreact so it's an art form to get the right level of focus on the data. >> it does kind of raise the question about survey response rates having collapsed over recent years. the weird nature of soft versus hard data, and high frequency data. how did you think about that back when you were on the committee? >> the committee loves hard data and i think it's certainly informative. it's very informative to talk to businesses, and i did do a lot of that and most of the committee does a lot of that. just talking to people about their businesses and it takes

some interpretation because it could be just something going on with their business and it could be something going on in the industry and you guys have this, too, but if you hear the same story over and over again, then there's something going on, and i think there's an art form in that, too. >> if you look at the inflation numbers and he said, look what's being at, and there is's lot happening that the fed can't control because it's low inventories keeping prices elevated. so if that's the cause for the stickier inflation numbers right now, the bulk of it and otherwise there's been tremendous progress, why wouldn't the fed go now and inflation is inflation and these are prices people have to pay and the inflation measurement is a very interesting issue. europe doesn't do the implicit rent calculation. when they started the ecb and it

is so different across different countries and they're very different across member countries and they've got that out of there and they look at the hicp and you can do that for the u.s. as well and you would get a little bit lower number than what we're looking at now, and not that much lower. and i have wondered about this, but you don't get that much improvement by saying i'm just not going to look at the rental part. >> has anything, whether nfp or jolt or adp or some of the isms made you think that we are entering a new chapter in the la labor market? >> i think the labor market remains very strong. last week's headline remains very strong and unemployment has been long and that will come into the mid-four somewhere and that will be a more natural soft landing, and it still looks

strong to me. i think it's much temper hand what it was 24 month ago, but stem still a strong challenges and will the, woers stay with me? how productive they? >> do you think do you think about imgrigz trends and that's hard to measure and you do see deals about that, but it's certainly been a factor. one thing is if you think immigrants are coming in they're probably taking lower paying jobs on average and you're probably not affecting consumption all that much. it would affect the job count. it's not totally clear how that comes into the job count, but there are various estimates out there. >> to higher paying jobs and just fast forward to your current job as dean of a business school. i'm curious as to how your student body and how you're viewing the curriculum right now

in terms of the advances being made in generative ai and what that means for a career whether it be in business and otherwise. >> purdue is all over this, and an engineering and m.i.t., stanford, berkeley, purdue, and it is bigger than all three combined and this coming year and so ai is a big part of that. we just got $50 million for purdue computes to really push ahead on the ai agenda. we'll put ai requirement in at the daniel school of business that all students have to meet a minimal ai requirement. we are doing executive education for lilly on their ai acquisition and their executives that are in their acquisition learning about ai. so we're learning a lot of things. >> what's your sense in terms of the ability to get a job and

given the changing nature of at you do work. >> technology and understandinging how it can disrupt thingses can only be good for for people's careers. so men people have been disrupted because they didn't understand the technology that was around that can take their business away and we can tell some prds and know better. >> can i ask one more since you're not at the fed anymore you can answer this question. >> okay. >> say that you were there, and come september weave seen more progress on inflation and more weaker economic data would it at all occur to you, concern you to do the first cut in september right before the election knowing that a lot of people are going to say the fed is in the tank for biden? >> no, i actually have some views. i won't hess tate to do it.

i don't think the commit would hess tate to do it bizzed on the data. i don't think anyone has -- i don't think it affects election outcomes norly as much as it would. >> but it would help the market. this election, this particular election the main issue is inflation over the next three years and on the incumbent side they don't want to give indication that they'll have the second biden term that they had in the first and because of that it's not clear the usual way the story is told here at the nyse that the incumbent always wants to slower interest rates and it's not clear that that's even the politics of it and i don't think the fed pays that much attention. >> thanks for coming in. >> fun to be here. thanks for having me. >> jim bullard. "squawk on the street" is back in a moment.

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after an early morning spill the markets are trying to erase some losses. the breadth has improved somewhat from the open when we had nearly an 8 to 1 down volume. still to come this morning, a fresh read on the consumer and the nation's growing demand for weight loss drugs. the ceo of vitamin shop will join us next. still ahead next hour, freeport mcmorran's new ceo officially takes the reins and she'll join us to talk about the road ahead with the former chief and that's on money movers at the top of the hour. at&t it's super-fast.

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more and more companies are pig backing off the glp one craze. our next guest says the weight loss boon is spurring deals of protein and weight loss drugs at his company. vitamin shoppe ceo joins us.

glp-1s are part of the health care trends. >> glp-1s, there's increase in demand out there but the thing we're trying to do is a destination for health and wellness with over 700 customers and make sure we get them holistic solutions, whether through glp-1s or natural ways and supplements. if they are on a glp-1, we want to make sure they are taking the proper amount of protein. you have a colo rectal deficit so you need to maintain protein intake, multivitamin and protect your gut health to make sure you're taking care of your body. >> you can't do all that with food? >> you can, but you can do it in a much better way that's isolated. when you're on glp-1, you're eating so much less so you need to make sure what you're taking will help your body consistently. that's why a pure protein.

we're seeing our protein sales, ready-to-drink proteins up 17%. people realize, i can only take so much, consume so many ca cal calories. >> to doctors recommend patients on glp-1s take proteins? are you doing actual clinical studies or -- >> we are working with a council of doctors and nutritionists to make sure we provide consumers with a holistic approach to their weight loss journey. it's important to take care of your whole lelt, not just losing weight. you don't want to just lose weight, you want to lose fat. you want to make sure you're exercising and getting protein as well. >> do you have an idea how much of the customer base fits that profile and what that number might be in five years? >> we think it will probably triple. we think it will continue to grow. people see it as a very important way for them to use as a catalyst for them to start to lose weight. at the vitamin shoppe we want to make sure it's a long-term

solution and maintain that and perhaps get off the glp-1. >> does it change your playbook for store expansion regionally or geographically in the next few years? >> importantly, we have actually, as we talked about, entered into allowing options. so, we're creating that holistic solution. for over 50 years we've been a destination of health and wellness for consumers. we really focuses on nutraceuticasl and supplements but with pharma it opens the band width to consumers to say, i have options with the knowledge and expertise of the vitamin shoppe. >> how are vitamin sales in general doing? i feel like they've been kind of fads, gone back and forth lately. what are you seeing right now? >> during covid, obviously, vitamins, minerals, supplements boomed immensely as people focused on their health and wellness. we saw a bit of a slowdown in that post that, there was a lot of pantry stuff.

people said, i think i have enough in my pantry, i'm going to go ahead and use those. now we're seeing that pick back up and we're seeing different trends as we highlight in the trend report of consumers realizing there are other aspects of supplements to help them in their health and wellness journey. >> longevity, can you make people live forever? >> we can't make sure people live forever. now we're talking about health span. while you're alive, how are you making sure you have the healthy lifestyle and enjoying all aspects of your life. not the years you live but how healthy you live those years. >> what is the best selling vitamin? >> protein is huge for us, multivitamins, really the basics and fundamentals. some of the new things coming, such as you health products for women over 40 plus. we launched over 40 new products for women in a period of their life where they're going through great hormonal changes. we're trying to go into areas and seeing demand from women in an area that's incredibly interesting and certainly one my wife and her sister said have been underrepresented within our

shop. >> lee, thank you. very interesting report. lee wright, vitamin shoppe ceo. >> thanks. >> don't know any womenover 40. >> not yet. not yet. very close. a lot more live market coverage for you. by the way, apple shares up 5.3% right now. i'm sure they'll be focused on that in the next hour. stay with us. car, take me home. (♪♪) car, can you turn the music down a little? of course, james. thank you. ♪ (suspenseful music plays) ♪ um... car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here.

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good tuesday morning. welcome to "money movers." i'm sara eisen with carl quintanilla. the stock market pulling back as investors await tomorrow's big fed decision. we'll get a clearer picture from the fed. got succession at free port freeport-mcmoran. will apple be the a.i. winner despite being late to the party? we'll debate it this hour as the stock hits an all-time high and helps out the technology index. the s&p is down.