president. it's tuesday, july 23rd, 2024 and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. and we are talking amongst ourselves about the delta outage. hard to say why delta has been hit harder than any other carriers at this point. lots of flights coming on this. we are all flying delta in the next few days. we have concerns. >> a little bit concerning if you are flying delta. de delta's having trouble figuring out where pilots and flight attendants are and when they're

available to be matched to trips. >> everything was done on microsoft there. >> right. you need a pilot. i would prefer two most of the time. flight attendants. i like them to be there, too, but not quite as important, right? >> i want all of them. >> you need a full flight attendant staff to just make sure to satisfy all of your needs. >> you prefer a full flight. >> yeah. for the safety and all that. >> do you? >> if you are trying to get -- >> i have one for both of you that just came up over the weekend. do you tip the attendant? >> the flight attendant? i do on amtrak. >> they remember you and you are

on it again. on amtrak? >> $5. >> for what? >> because they serve you. >> a drink or a meal. >> you don't do that to the flight attendant? >> no. i was reading in france you don't tip at all. >> maybe you shouldn't do it on amtrak. let's do the sorkin model. instead of adding the flight attendant on the plane, why not take off -- >> how about quality? nobody gets a tip. >> from now on, if things go well, there will not been any taxes on the tips. >> bingo. you know me well. >> as planned. right now, you will see the dow futures higher up 35 points. flat for the s&p. the nasdaq indicated off by 35. this does come after the s&p 500 and nasdaq broke three-day losing streaks to have their best day since, i believe, june 5th. you are looking at a little bit

of momentum. we will see what happens later today. treasury yields. 4.23 for the two-year. the securities and exchange commission appears to have given the green light for ether etfs. trading to begin as soon as today. several bond issuers submitted statements yesterday afternoon and it would trade today indicating that the s.e.c. signed off. ethereum right now up 1%. we will speak with galaxy digital mike novogratz in the next hour. in the meantime, vice president kamala harris secured a number of delegates to the convention. she is on track to lock up the nomination next month. she traveled to delaware and

asked biden's campaign chair and managers to stay in their roles. biden isolated at home with covid. he outlined a list of issues. the white house saying the president is scheduled to return to washington this afternoon. >> which is significant with all of the stuff swirling around. the weird signature -- all those things have the conspiracy theorists going on. >> i would not express the conspiracy theory. >> he did walk up those steps. you know, he's -- >> he has covid. >> he's 81 years old and has co covid. he could have been pretty sick with covid. >> it would not match up with what was said. the white house doctor said he is improving. >> supposedly the symptoms are resolved is what they said. how about christmas?

who gets tipped at christmas? >> i made a list. every year. >> the mail guy. the guy that cuts my meat -- everybody. everybody. everybody. the audio engineer. someone just said in my ear. someone just said. that's not right for you to use your ability to do that to self promote. >> it's the voice in my head telling me i must tip the audio engineer. >> and i look and i go, oh, my gosh. >> you know what exhausts me? i never make a list. i probably give people different amounts on different years because i can't remember. it is not a reflection. >> you have a spreadsheet. it is all zeros, isn't it? >> i give out more money than i possibly conceive. >> we're happy to do so because we're really lucky. >> we're happy to pay our taxes.

think about it like that. >> i'm not sure i'm happy to pay 55%. i do and i will and i don't -- but it seems like a lot working until july 15th for uncle sam. >> you are free and clear. >> what's today? oh, my gosh. a week's worth. i paid off phil murphy. >> your agent? >> yeah. which i can't deduct anymore. bombastic. amc reached an agreement with creditors that extends nearly $2.5 billion of debt maturities from 2026 to 2029 and beyond. this was a big deal. the agreement will also allow amc to reduce its debt by $464 million by converting exchangeable notes into equity. adam arron said the box office

challenges related to the strikes are now in the rear-view mirror and momentum is back. i can confirm that. i know people close to the industry. this weekend, there is some big marvel thing. >> "deadpool" movie? >> i don't know. there were serious concerns of viability. it was all coming through. >> covid and the shutdown and then come out of that and the strike that happened. >> and all of the devil issues 5 and 2026. this could lay to rest if this is an ongoing concern. adam aron will join us in the 8:00 hour. if you are an "ape" or have friends that are "apes" or friends that know "apes" maybe

you will tell them. >> i saw "planet of the apes" recently. >> attention all "apes." he will be on at 8:00. porsche is cutting the full-year forecast because of the shortage of certain aluminum alloy. the company will release financial results for the first half of the year tomorrow. earnings alert. shares of u.p.s. are falling after reporting earnings of $1.79 a share. below the street of $1.99 estimate. revenue at $21.8 billion is below expectations. the company realized volume growth in the u.s. for the first time in nine quarters. u.p.s. also restarting the share repurchase program targeting $5 million in 2024 and $1 billion ann annually. that stock off on the news about

6% this morning. still to come this morning, earnings season is heating up. we get you ready for a flood of reports due in the next hour. we will have to get ourselves ready for us. we have several names reporting after the closing bell daftoday later, senator chris coons will join us about the decision of president biden to bow out of the 2024 race. "squawk box" will be right back. ♪ ♪ ♪ ♪ ♪ ♪

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welcome back, everybody. on today's "squawk planner," it is a busy day for earnings. we hear from ge aerospace and gm and coca-cola. after the close today, it will be alphabet, visa and tesla all on deck set to report. the s&p and nasdaq posting their best day since early june yesterday. joining us right now about what to expect is gabriela santos. she is jpmorgan's strategist for the americas. that is a mouthful. >> it is a mouthful. thank you. >> what do you hear from the clients right now? so much is swirling on politics here and on what is happening around the globe. what are the questions you are hearing most from people?

what are they wondering? >> we are getting a few questions. the first on the political h headlines. is there any policy readthrough from the changes in the upcoming election. we tell clients, it is too recall to know the outcome and the policy implemented. if you do know that, it is hard to actually figure out what the investment trade or investment would be. for example, i think there's a lot of focus on differing policies with energy, for example, with democrats and republicans. actually, what we saw with the trump administration, clean energy was up 300% and vice versa under biden. we take all of the political and policy developments with a grain of salt. that said, the one big underlining read through is higher deficits. the discussion is the slope of that deficit and that will

dominate all of next year. one big implication for us is higher long-term yields and anchored yields. as a result, when we see clients moving out of cash and taking duration, there is no need to move too far. short-term intermediate duration. >> what will the regulatory outlook look like? there has been a lot of frustration with leina khan and the ftc and any companies not doing any type of merger. would that change potentially under president trump? there are questions with jd vance, his running mate, who seems to have some affection for what lina khan has done. >> that's right. that is a good example of not knowing the outcome of the election, but the actual policy would be. i think for a couple of weeks there, there was an idea of the trump trade and part of the trade would be lighter

regulation. at the end of last week, there was a questioning of is that really the appropriate investment. there is more focus more broadly on both sides of the aisle about regulation and where exactly that's focused might differ, but there is a bit more focus on large-cap tech. >> it is hard to think of more regulation when it comes to this front. i think there's a huge pushback from the business community at what they've been dealing with. >> i think what the object of what the focus is of that regulation might change. for example, we do think there's generally a desire to have a bit more focus on regulating large-cap tech companies, but exactly what shape that takes or doesn't take and including, for example, restrictions when it comes to exports toward china. in general, it does seem like the attention is very much focused on large-cap tech.

>> let's think of ago things investors are probably talking about. you see these huge runs in the markets and people have to wonder will that growth continue. >> that's right. with a lot of clients we speak to and if they agree with our base case and outlook for the economy and still quite a robust earnings picture and bottoming in margins, how do you plimplemt that positive view with large-cap valuations at 21 times and 40-year all-time highs. that gets more complicated to implement a constructive risk-on view. we get a lot of questions about, well, is it large-cap tech or small caps? we don't need to go the pendulum one way or the other. what we are speaking to clients about is broadening out. it is maintaining that large-cap exposure and broadening out the winners from a.i. and looking at

other structural developments like inn thovation in healthcar and policy. there are many more winners. wecan still look for them in the large cap or midcap space. we don't have to go to the other side of the extreme of small caps. >> what about the fed? we have the fed looking to cut rates in september unless there is a switch in the data points we see at this point. does that matter? >> we do get a lot of questions around does it actually matter when the fed cuts rates. i think there is a lot of exhaustion of the fed move. there is a cut and we have taken off the further cuts off the table. that is the pivot. that is a more constructive back drop for risk. that said, it does matter if they cut sooner rather than later because we wiant fed cuts

to be proactive rather than reactive. >> the best of all worlds here. best of both worlds with the rate cuts and the economy hasn't seriously turned down. >> that's right. the fed keeps talking about the adjustment or right-sizing policy. i think that's the environment where the economy can keep chugging along. i don't think it is a good outcome for the risk markets if the fed is cutting more aggressively. that is a sign of a bigger slowdown. in that way, you can't have the best of both worlgds there. that's why it is too early for small caps. it is just not going to happen. a sweet spot and there's still plenty to invest in is more the large mid-cap space. >> gabriela, thanks a lot. >> thanks for having me. before we head to break,

let's look at this before we head to break. check out shares of spotify. thank you. the oustreaming app with monthl active users grew 14%. paid subscribers increased 12%. you see the shares are sharply higher up almost 12%. okay. coming up, a big decision from google about the ability to track your browsing habits online. we'll bring you that story next. friday marks the opening ceremony of the olympics. "squawk box" will be there live. we will bring you coverage of the games and interviews with athletes. join us friday at 6:00 a.m. eastern time. we're coming back right after this.

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welcome back to ""squawk box." after years of delays, google says it will no longer cancel cookies to track a users behavior. it sticks around as it visits other sites and gathering information that has fueled the digital advertising market. in 2020, google said it would end support for the cookies by early 2022 once it figured out how to address the needs of users and publishers and advertisers. now the company has received feedback that led the decision to cancel the plan. google says instead of eliminating third-party cookies, it has a new experience in the browser to make an informed choice across the web browsing. it is discussing the plan with regulatoreors and engaged in th industry. how many times have you gotten

into a web site and said would you like to accept all cookies, no cookies or some cookies? i never hit the some cookies. i don't understand which cookies i'm supposed to be accepting. it is accept all and let's keep moving the train ahead. >> if you say no, it takes you down the rabbit hole. >> sometimes and you are in another world. >> they ask for a lot of things. i usually say no. location? can we do this? can we look at your stuff across all your stuff? >> i say no on the apps. you cannot track where i'm going either. >> it probably doesn't matter. they are doing it anyway, probably. >> probably how most americans feel about it. >> it's hopeless. separately, alphabet's talks to acquire wiz for a planned $23 billion has fallen apart. the co-founder of wiz said it was tough to a no to such a humbling offer, but will

continue the plans for an ipo. a person familiar with the wiz decision cited anti-trust is part of the reason for abandoning that potential deal. there were a lot of questions about whether regulators would allow it to go through given how much focus there is on big tech companies. >> i don't know why they're worried because nobody beats the wiz. >> showing your age. you remember the electronics store? >> that's why i said it. nobody beats the wiz. nobody beats the wiz. >> crazy eddie. >> that was about the same time. >> it was about the same time. >> take the -- i used nobody beats the wiz. >> thinking out loud. >> for not saying that. >> until you did. >> oh, and saying i didn't say it. nobody beats the wiz. at least you got it. you're not a -- >> no spring chicken. >> you're no spring chicken.

>> thank you. as we come back, we're going to talk about general motors. it is set to report in the next few minutes. we'll bring you the numbers and first on cnbc interview with the company's cfo. as we head to break, take a look at yesterday s 5 w's&p00inners and losers. >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. oh, thank you so much i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot

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good morning. welcome back to "squawk box" live from the nasdaq market site in times square. take a look at futures this morning. we have green on the screen with the dow and s&p 500. nasdaq off 8 points. dow up 54 points. the s&p 500 up just about 4.5 points. joe. earnings of $1.20 a share beat estimates by 21 cents. revenue of 9.$9.09 billion was

above above expectation. ge aerospace is beating demand. stock up 1.4%. general motors is also out. earnings there coming in at $3.06 a share. that is better than the $2.75 that the street was expecting. revenue came in at $47.97 billion which was better than expected. gm is now raising the earnings guidance for the full year. the stock is up 3.5%. we will speak with the company cfo in the next hour. and, i guess yesterday wasn't just the secret service grilling. several lawmakers are raising concerns of the multibillion dollar deal in the telecom industry. emily wilkins has more. emily. >> reporter: joe, things happening on capitol hill including the democratic senators sounding the alarm about the deal with t-mobile and

u.s. cellular. they are asking the justice department to scrutinize and consider challenging the deal in the new heard obtained by cnbc. the $4.4 billion deal announced in may would allow t-mobile to use part of the u.s. cellular system and give access to the 4 million customers. in the leader led by senator elizabeth warren said the proposed deal would have far-reaching effects and reducing choices for customers and potentially leading to higher prices and other harms for consumers across the country. now, the lawmakers asked the justice department and fcc to carefully consider if the deal could cost consumers more. warren and amy klobuchar raised concerns about t-mobile before, including with the merger with sprint and raised those concerns

in the new letter sent on monday asking the justice department to consider unwinding the t-mobile and sprint merger as well. the deal is still in early stages. it is yet to see how the government will respond. at the time of the merger, u.s. cellular said it would offer customers more competition, not less. guys. >> very good. thanks. thank you, emily. i was unaware of the letter. hence, the exclusive nature. thank you. coming up, ether etf trading and what that means for today. we will do that next. as we head to break, take a look of shares of crowdstrike. this stock falling another 13% just yesterday. now down more than 25% since friday's global computer outage. analysts warn it could take time for crowdstrike to repair its

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welcome back to "squawk box" this morning. spot ether etf set to begin trading today. the s.e.c. approved applications from 21shares from bitrock and blackrock and vaneck. joining us to talk about all of this and what it means for the crypto industry and what is now what is described as a milestone is anthony pompliano. good to see you.

>> good to see you. >> you seem less excited this morning than when you were here on bitcoin day. >> let's look at the bitcoin etf. historic thing. the best launch in history. one of the best stats is the blackrock etf had more net tflos than qqq. i think what a lot of people say that was the first one. is the second one as big? i don't think that is true. before i came on, i looked at all of the major news sites. people are not talking about it. the media attention and hype is not there. it brings you the question why are people not talking about it as much? i think part of the challenge for ethereum is the story is not as clear. the story is clear with bitcoin. it is digital gold. ethereum is a technology platform. there is more competition, et cetera. if you talk to bitwise, what they would tell you is actually they would say diversify cicati. people don't want to have one, they want a couple of them.

it is bitcoin and ethereum. let's do a 30 split. you have to look the stories and it is clear. you will not get the cash flow that is not available to the etf holders. i think the flows are not as big as bitcoin. how much impact on prices will this have? >> walk through the flows on bitcoin and the extent that is the model at all. the 70/30 idea and difficult ve diversify in that way. >> i think the flows on the bitcoin side, some have 10 to 15 to $19 billion in them. real money is moving in them. the ethereum ethef approval is less than ethereum and more about the market. this signals all of the alt coins will come to wall street. it may take a while and they

will be treated a certain way, but these things will come to wall street. zero to 1 is it bitcoin or not, is that coming to the industry. the people with the portfolio model will start to apply that to all of crypto. >> for those that don't follow all of this, does ethereum ultimately, to you, have the same sort of restrictions in terms of how many ethereum that ultimately will be on a relative basis to the way bitcoin is set up? that, to me, is a fundamental issue. >> it does not. one of the issues that the critics have with ethereum is the monetary policy mimics closer to the u.s. dollar, right? the periodic decisions as to whether the monetary policy is more constructive or not and how many are going to be availableavailable, et cetera. ethereum has said we have the long contract platform. now there is a lot of competition. it is not the fastest.

it is not the cheapest. other block chains have come forward. i believe there will be inflows to the ether etf. it is not to the magnitude with the other pressures. >> what is the pomp family going to do. >> i'm biassed. i sold ouall of the ether i own last year. we will continue to hold bitcoin. there is an entire other universe there. the thought process is be in the asset that is cheaper, faster and likely to receive more flows. if you look at decentralized exchange. it is eating into the market share of ethereum. there is more momentum. >> flip the screen around and show everybody bitcoin and where things stand right now. curious. we went up the mountain and down

the mountain. we're climbing the mountain again a little bit. in terms of if this is price discovery, what is really happening? >> first of all, we have been doing a lot of mountain climbing over the years. i don't think this is anything new. what i do think is happening, if you watch the last two weeks of bitcoin, bitcoin is sensitive with the geopolitical or uncertain moments. go back and the trump assassination attempt, bitcoin dropped immediately. as soon as it breaked he was okay, it moved higher. joe biden coming out and dropping out of the race. bitcoin drops and comes back with certainty and he endorses harris. i think these assets are starting to blend the line. it used to be the crypto industry and traditional finance. now you have an overall financial market. >> i know what you are saying there. >> what do you mean? >> you are saying he is out and hope it would be someone more

electable than kamala harris and then it is kamala harris and it goes back up? >> with the supassassination attempt, the news break and the potential president got shot. people are freaking out and the price drops. if you look at the announcement, the current president not sp seeking re-election. the uncertainty. >> i thought former president gets shot, that could cause a civil war or something crazy could happen. you would actually think if this is "gold" -- gold and bitcoin should go up in these moments. you realize he is okay. >> this is about the regulatory ove oversight. >> i think -- >> the same thing happened with biden getting out. that's why it doesn't make sense. >> it is also, you think, treasuries. i think treasuries before gold now for safety.

don't you? >> i've thought that for a long time. >> what is interesting to me is think of it as human nature. you hear a piece of news. i was eating and somebody said president trump was just shot. i got a text and jumped on twitter. the human nature takes over. what happened? then you see the video and the news. it looks like he's all right. et cetera. the markets react the same way. both of the situations happened on the weekend. stock market is closed. this is open. >> andrew is right. you think it is a flight to safety. it's not. >> ultimately, it was. the initial reaction to the news like that is fear. then you do the flight to safety. all that happened in 15 minutes. we're talking about the initial shock of the news. some may be over with negative news and prices drop. in both of the situations, bitcoin was up 3% on sunday after president biden dropped

out. that asset specifically is starting to insert itself in becoming a signal for what is happening in the world. >> how much of that is regulatory overhang? >> i think bitcoin is through the threshold on the regulatory front. i think the ether etf if these alt coins come to the market, people will allocate them. it is which is first and when do they get approved? >> thank you for the exch explanation. we will see what happens today. coming up, we will talk more about this topic this morning with mike novogratz. he has been outspoken about the presidential election that we are living through and we'll talk to him about his latest thoughts on what's happened over the last week and a half. when we come back, warner bros. discovery going for the steal. it's making the nba media rights

negotiations more interesting. we'll have the details after this. "squawk box" will be right back. 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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warner bros. discovery has informed the nba it will use the matching rights for nba games earmarked for another company. the company is targeting the deal that was carved out for amazon prime . the rights allllow the company match the deal. the nba and its attorneys will

now have to determine when the rights extend to a streaming package. if the nba rejects the watrner bros. claim, a lawsuit would happen. disney reached a deal with the nba for media rights. a big part of this was news earlier parent company, comcast, reportedly reached a deal for nba for media rights. a big part of this was news earlier this week that amazon put in a poison pill, the 5$5.8 something billion seen as the three-year value for that deal, and the question was whether tnt would be able to match that with warner brothers and there are sources saying they would. >> the reason this has taken so long is because the nba has tried to figure out how they could effectuate the deal. i am imagining you wouldn't go down this path if you thought you were going to be living -- not that you may be living in some kind of legal marass for

some period of time. to go down this path and think they would lose, i have a hard time imagining, so i think it would be a tough one, don't you think? >> good time to pro mow the olympics, i guess. lebron is going to be a flag barrier. >> yeah, he was voted that. >> and golf is now played in the olympics. coming up, quarterly results due from coca-cola and comcast. and then i might get that tattoo -- that might be -- >> which tattoo? >> the circles. >> oh, the olympics -- >> yeah. >> where?

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vice president kamala harris has secured a majority of the delegates. joining us to talk about the race for the white house, libby cantrel, head of the public policy at pimco. we have been calling it the trump trade, and it could be the harris trade and used to be the biden trade. i think in your view, the development over the weekend

when some people call it surprising -- >> seemed inevitable. yeah. >> yeah, seemed inevitable, but it lessons the likelihood or probability of a red sweep -- >> at this point. >> at this point. it lessens it. trump is still favored, but it's definitely a more open race. the trump trade, you think, might not be as strong a move. >> it has reset the race. we have had a number of events that reset the race over the last three weeks, and it's a historical stress in modern history. >> crazy. >> at this point, yes, there are a lot of unknowns versus last week where the market understandably was pricing in not only a trump presidency but potentially a pretty vast republican sweep of both chambers, the senate and the house, and things have changed since then.

again, it's early. we don't have firm polling on harris versus trump, particularly in the battleground states. there's more blank space here as of now. we will likely have more information over the coming weeks. and to think who she picks as her running mate now that she secured the delegate allocation -- >> you think that's important? >> more importantly. >> for both of them. for trump, too. we joke with the clients. this is the election nobody wants. the down ballot, excuse me, who is number two can actually help to mitigate concerns or increase concerns. i think for kamala harris, because she doesn't really have much of a record as a vice president, she has been more in the background, and who your number two is is basically your first real public decision of expressing judgment. i think the stakes here are higher for her. >> probably more than normal.

as we point out, it could be a narrowing race. the other wildcard is donald trump. we have no idea. after the financial crisis, covid, everything that has happened, the crazy stuff that has happened in the last 15 years, should we be surprised there was an assassination race, and nobody ever left the race -- >> he left in march. he was not in the race, and the primary process was different back then. we had an assassination attempt as of last week and we are not even talking about it. we are becoming so desensitized -- >> yeah, and if it was successful we would be talking about it a lot. >> we were fortunate he turned his head a quarter inch. for our clients here, the

takeaway is given the race has been upended is the chances of a republican sweep or less than they were last week, but to your point, that's not to say the race is going to be steady. the race will be dynamic, and there will be a lot more moving parts over the last three months or so and the race has become symmetric, and that retraced yesterday and there's more focus on the fed than the election by the market. >> i remember when jerry ford was picked to take over, and there's always a lot of excitement, and there's a collective sigh of relief from the democratic party that they have somebody younger, somebody -- >> there's hope.

>> yeah, and then you get back to, okay, let's look closely at exactly would she take us left of where biden was because she's basically a san francisco democrat? i guess that's one way to say it. >> she did run for political office in san francisco, yes. >> the border stuff will come back up and it will come back and be front and center, and front and center for the democrats would be she's a prosecutor and she can prosecute the felon, et cetera, et cetera, and i don't know how to -- >> well, the caveat at this point is a lot can change. she's been in washington for 3 1/2 years. the race she ran in 2020, she didn't necessarily have a lot of firm beliefs. >> right. >> she did equivocate on -- some of the issues that haunted her in 2020 may still haunt her.

if you are looking at this point, we just -- there's just a lot more in the race than last week. >> i watched her last night, and i am going to build the middle class out, and her main selling point was i prosecuted sex offenders, and we have one here i will prosecute. that was her pitch to be the rabbit crowd watching. >> specifically she said, i know his type, i know donald trump's type is what she said. >> if you feel this way, president biden was not prosecuting the case at all, meaning, he was not even out there, and the truth is -- >> i don't know what it means. what does it mean -- >> for get about the prosecuting the case, when i say prosecuting -- >> you are saying the justice department had nothing to do -- >> no, i am saying you didn't have -- in president biden you didn't have him out there who was out there constantly campaigning and criticizing the

former president while you had the former president out there campaigning and a huge part of his thing was -- >> are you saying biden was about democracy and saving -- >> yeah, infrequently. >> her focus has been on reproductive rights, and that's something biden would have been able to prosecute or litigate in the debate, and he was not able to. >> i think people point to her now that she was able to find footing there. >> she found footing on this particular issue, particularly among young people. the reason you are seeing exuberance is there's hope and optimism, that at least you have somebody that can make the case. she may not make -- win the case

in november, but she can make the case. >> exactly 34 felonies, right? it's all front and center. >> yeah, they are back -- >> yeah, those talking points are out there, andrew. >> but if you are a down ballot democrat, this is what you want. even if she loses, their seats, they were out poling biden. the optimism may be short-lived, but, again, there's a lot more -- >> well, j.d. vance was talking about the devil being real. there's a lot of -- >> that was from 2021. >> he also gave a speech yesterday where he was saying, you know, he's a wildcard, too. at this point they are saying that might have been a mistake given that it's no longer a slam dunk. we have 103 days to enjoy each

other. >> live through this with us. come back. you are watching "squawk box" right here on cnbc. coca-cola out with its earnings came in with better than expected numbers, 84 cents instead of 81 cents. and in fact, the street was looking for a decline in revenue for the first time year over year since the fourth quarter of 2020. didn't happen. coca-cola outperformed pepsi recently. it has done a pretty phenomenal job. part of that has been the weakness in snacks pepsi has been dealing with and there are a lot of reasons for that. the question was how long they continue to get pricing power here. coke did raise its prices by 13% in the first quarter. it did see its sales volume up

by 1%. it's now saying it's raising its annual sales forecast, 9% versus the 8% forecast before that. and margins stronger. if you are looking at the unit volume, unit case volume, up 2%. pretty strong numbers across the board here. shares off by half a percent. we will continue to watch this and hear what the company has to say on its sales call -- call with oanalysts as well. comcast reporting earnings 9 cents better than estimates. revenue was below expectations. as a launching point for what we can talk about, there is a lot, as there always is, in this multifaceted company. some of the highlights, i guess we will talk about some of the

things that stood out to me were the studio business, and tough comps for movies after a really strong quarter last time -- andrew, it's up a little bit. >> i know. >> a lot of the core businesses of comcast, in terms of broadband connectivity, you may not have seen the same growth you saw during covid, but basically holding on to the gains that were made during covid. video subscribers once again was down. the company has not been chasing unprofitable video subscribers at this point. it was down another 400,000 or so to 13 million, which is amazing that they were all the way down to that. at the same time, peacock once again had revenue above a billion. subscribers up 38% from a year ago. sequential with the last

quarter, because the company would say it didn't have a tent pole in the quarter to bring in subscribers, and they are referring to the one nfl game they had where a lot of people signed up. >> the company points out they have the olympics coming up. >> by the way, there's another game in september. >> yeah, another one in september. i guess i am trying to look at the big picture. peacock is coming along as the cord cutting is continuing. that's what all these companies are trying to face. a couple other things. it was the highest ever adjusted ebitda platform in wireless. sorkin, that's a growing number, big numbers there, but is it going to be enough to show comcast had units growing quickly? >> upwards of 7.2 million. >> is that enough of a business

to make up for? remember, the growth in broadband connectivity in big businesses was phenomenal, and why that's the stock ran up to $65 a share. it was below 40 until this morning. it's up a dollar now. you wonder how to view the company. got a great business but where do you -- >> will you say something about the parent company, sorkin, instead of -- >> you are hanging out yourself by yourself. i don't need to do anything. >> yeah, the studio declined for quarter two. you said the studios -- i'm sorry, we did theme parks. >> yeah. >> it was down following a record 2023. demand from the parks post covid starting to pan out a little bit. they are launching epic universe in 2025, and we will see what that brings, too.

new attractions in japan and las vegas and in texas. >> libby is still here. your kids, would you go to disney or universal -- >> i am going to abstain from a comment on that. >> you have had butterbeer? >> i have not had butterbeer, but i do like beer, though. >> did you say you like beer? >> you are like brett kavanaugh. >> i do like beer, i am from colorado, the land of coors, you know. >> i even like the nonalcoholic beer, which you talked about. i liked it a lot. >> it's amazing. >> i do not like it. >> you didn't -- are you sure you had -- >> yeah, i had the nonalcoholic -- >> the good one? >> i don't know. it was all right. sorry, and i am not trying to offend anybody.

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it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. vice president kamala harris secured a majority of the dnc delegates and is on track to win the nomination. joining us with what is happening behind the scenes. that's a big onus on you, senator coons. can you start with your good

friend, president biden, and let us know about how he's doing. he's supposed to return to the white house later today. you have spoken to him? >> i have. president biden is doing well. he's recovered from covid. it was a rough weekend because he had to make a historic decision. he took the time to reflect, to listen to folks from across the country, from our home state of delaware, people that have known him for decades and those advising him on the campaign. he made the decision to step aside and allow his trusted vice president who has been with him every step of the way to go ahead and because she consolidated support from the delegates to the upcoming convention in chicago. i think she will go on and win the presidency this november. >> do you know what happened this weekend? there's a lot of swirling around

and we promised a behind-the-scenes look. there are new articles today pointing to former president barack obama's fingerprints here. rob blagojevich wrote a piece -- >> i did not see rob weigh in on this. >> let me finish the question. that president barack obama is a ward boss, and this is not an election of kamala harris to be the nominee, but a c-lection. something changed his viewpoint to stay in the race. do you know what that was? >> i think president biden was a successful president and vice president harris was by his side

every step of the way. he looked hard at balancing two things. he has a lot of fight and grit. he is somebody that has been knocked down by life anymore than i know, and he has gotten up every time and gotten back to work and gotten things moving forward. this time he had to balance whether or not from now until november he had that fight and ability or whether it was time for him to pass the baton to his trusted vice president who was a key part of the accomplishments they have had together. in the end, after hearing from a lot of people, from grassroots folks and leaders around the country, he made the right choice. joe, instead of exactly what made the right decision, i think it's important that we take a moment and thank joe biden for his leadership and what he has gotten done. the stock market is at an all-time high. he's invested incredibly in manufacturing, in our

infrastructure, inputting us in a great place to be competitive in one of the key drivers of stability, prosperity, in this century. that's a great legacy for joe biden. >> back to behind the scenes, do you know who is in the running for the pick for vice president at this point? who would you suggest? >> look, i think it's fairly wide open because this announcement, this change, just happened. i am here in wilmington, delaware, where yesterday vice president harris came to fire up the crowd. the five folks you are putting on the screen are among the many being discussed. i think it's important that this be a strong balanced ticket. let me remind you, donald trump is more focused on his golf score than he is on reducing prescription drug prices and gas prices. he's babbling on about electrocution in sharks rather than focusing on the future. i think vice president harris will be able to choose a running

mate that will build confidence the democrats will continue. donald trump had to go and get a new vice president, because his old vice president, mike pence, refused to endorse him. there are five republican senators that said they won't vote for him. he has to rebuild his team after the wreckage at the end of his term. >> senator chris coons, appreciate that behind-the-scenes look. thanks. the ceo of general motors, paul jacobson will join us.

we are going to talk value investing, and also john rogers joining us. we are coming back with all that plus so much more after this. fo. from preserving a cultural tradition to leaving a legacy, a raymond james financial advisor gets to know you, your passions, and the way you enrich your community. that's life well planned.

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welcome back to "squawk." i am here with joe seth kernon and becky quick. i want to get over to dom chu with this morning's premarket movers. >> good morning, andrew, joseph and rebecca. we will kick things off with ups, down 8% premarket, posted a miss on current quarter profits and revenues as well as sighting higher labor costs. those shares 8% lower. next up, ge aerospace moving 2% higher. exceeding second quarter estimates for profits and

revenues and raised its full profit forecast, those shares up 2%. coca-cola climbing higher as global demand for drinks rise in the second quarter as well. shares up nearly 1%. comcast, those shares are higher by roughly 1% right now. mixed second quarter results, beating on profits and missing on revenues due to pressure on the theme parks and studios department. becky, i will send things back over to you. >> all right, dom. how would you like us to refer to you? joe insisted that we now call him joseph. >> we want to make sure everybody's name -- >> is the emphasis on the seph part? >> andrew said however i wanted, i can designate how to do it.

we want to make sure we correct the vice president's name correct. i think they deliberately pronounce it wrong. >> comma/la. >> they put the emphasis on the wrong syllable. >> we can't change any facets on dom. >> dominic -- >> the biggest hit of the '60s. it's really good to be old to remember these things. moon landing. it happened. >> you and buzz, if you say so. >> thanks, dom. when we come back, paul jacobson on the mpy'coans

quarter. that is up. and then james comer will talk to us about rising health care cost and much more. we'll be right back. so their it team deals with up to 90% fewer network trouble tickets. (sonic boom) whoa, what was that? just the sound barrier. that's the now way to network at work—with real ai—putting you in the fast lane. (♪♪)

♪ ♪ a rainy day here in new york city. that's a live shot of manhattan, if you can see through the rain hitting the glass of the camera this morning. when we come back, we're going to be watching shares of gm. this morning the company just reported quarterly results. gm's cfo will join us next. we will talk about what is going on. by the way, the stock up 4.5% on the back of the earningsew ns. we will talk value investing with john rogers of aerial investments. all that and more when "squawk box" returns.

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with t-mobile for business. welcome back to "squawk box," everybody. we're taking a look at the futures right now. looks like the dow futures are up by 53 points. s&p futures up by 9, and the nasdaq up by 16. most of the stocks are trading higher if you look across coca-cola and general motors. we will talk about more of these, too. heavy earnings season. >> lockheed martin, the street

was looking for $6.46. also expecting revenue -- reported 18.2 billion, and that's above estimates. lockheed is earning revenue guidance for the full year, and the stock is up almost 2%. >> general motors reported $6.23, and the street was looking for a much lower number of $2.71. you had revenue that came in better than expected as well. it's up about 7%. gm is raising its earning guidance for the full year, and the stock this morning up by 4.5%. this would be a 52 week high of $51.80. joining us, the cfo, paul jacobson, to talk more about it. from what i am reading about this, it was strong truck sales? >> yeah, good morning, becky.

let me start by saying thanks to the entire general motors team for another excellent quarter where we executed well. our full-sized pickup vehicles were up, and really competitive incentives across the board. when you look at the strategy meeting the customer where they are, and it's something consistent with us. our compound growth rate on revenue is up 16% over the last two years. strong execution by the team and really more of the same of what we have been seeing over the last several quarters. >> you beat by 35 cents on the quarter that just ended and you are raising guidance for the full year saying you are looking to $10, and before you said $9.45. is that on the beat you have

here or do you anticipate things will be better than expected in the second half as well? >> when we began the year we talked about pricing being down 2% to 2.5%, and said if it wasn't we would expect to outperform. this is our second beat and raise this year. we also took earnings guidance up by half a million at the first quarter as well, and we are assuming in those numbers we see 1 to 1.5 points in pricing decline in the back half of the year and we do that to be conservative against the market. we are executing very well. >> it does not sound like you are facing issues with consumers not being able to buy these things or afford these cars at this point. do you need the fed to cut rates in order to boost demand or are you fine even if they don't? >> you know, i think we are incredibly proud of our product

offering, and it's the best portfolio we have had, perhaps ever, at gm, and customers are responding across the board, and it's not the suvs, but the new chevy tracks, that vehicle is coming in more profitably than the predecessor vehicle that it replaced. we have a great refresh in the portfolio. we still have mid size suvs coming into market at the end of the year, and more evs to come. we are continuing to make great progress on the trends. for our customers, they have proven resilient in terms of the demanding not just new vehicles but also continuing to buy up trim levels and et cetera. i think it has been strong for us. certainly we think the monthly car payments could benefit from future rate cuts, but the business is performing well and has been even in this higher interest rate environment. >> what are you offering in

terms of the discounts at this point? for a long time after covid, those disappears because there was not enough of supply with all the issues from the supply chain. what do you have to offer now? what can a customer expect when they walk in? >> it depends on vehicle line. you know, certainly today we are seeing a lot of strong demand for our vehicles. we kept inventory levels down. there are some discounts across the portfolio. we generally have been discounting less than the industry, and i think that's some of our outperformance. it speaks to the quality of our vehicles and the customer demand we have created. >> do you offer discounts on electric vehicle sales? that has been a tough market? >> we have been, but not as much as some of our competitors have. we have been slow and steady in terms of bringing vehicles out to the market. i will say in the second quarter, our electric vehicle sales were up 40% in the quarter versus the industry up 11.

those are on small volumes. we are going to continue to scale. we expect still to produce 200 to 250,000 evs this year and wholesale them and that will allow us to get to variable profit positive which is the next step in our journey from getting an ev to profitability. >> you said you are restructuring in china, and you had a loss and equity volume problem in the chinese venture you have. sales have been in a free fall from what we are hearing, and part of that is byd and what they are able to do and the prices they are offering as well. what would you say about what is happening in china andwhat are your plans there? >> we have had a long presence in china with our partner over there, saic, and it has done well for us, generally provided some significant dividend streams over the years.

we have seen pretty significant share erosion as we saw the up start independent chinese new energy vehicles coming to market, and that share has really hurt our performance. we came into the year expecting to lose money in the first quarter. we had a sizeable inventory balance we had to work through and we expected that would turn around in the second quarter. we highlighted that at a conference earlier this year where the second quarter was not trending well and we have seen some of the challenges perfect cyst, and we will work with our partner and work through the inventory and reduce our structural cost, and work on premiums entries in the market as well. we will make sure we get it turned around. >> the cruz origin car, that's a self driving vehicle, no steering wheel in it. that you are stopping production

of indefinitely. what does that mean? >> it was a great concept vehicle that we were rolling out, certainly getting back on the road in cruz that are now in three cities with the bolt, the chevy bolt, that's a vehicle that actually is a lot more consistent with the federal standards. it will allow us to scale faster. when we roll out the new bolt at the end of 2025, it will be a vehicle that will be able to move faster and much more efficiently across the board. as we continue on the journey of making sure that we are gaining momentum in the cruz autonomous business, we felt like the bolt would be the best vehicle for us to do that going forward. >> thank you for joining us today. right now the stock looks like it's up by about $2.40. appreciate your time today. >> thank you. going to be quite an hour in the 8:00 on "squawk box" today,

we have house oversight chair, james comer, and others will be joining us. those are not the possible vice president -- we had a similar graphic for that, and they could be, you never know. that would balance out the ticket. a big hour straight ahead.

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cruz. cruze. cruz. crews. welcome back to "squawk box." the global it outage still impacting delta airlines. the airline saying it's working around the clock to restore operations after the outage on friday. canceled more than 1,100 flights yesterday. that brings the total since friday to more than 5,000 flights, including another 371 cancelations that just had taken place so far this morning. meantime, the securities and exchange commission appearing to have given the green light for a

spot ether eft. trading could be begin as soon as today. yesterday afternoon, exchanges have given notice it would trade after focus. and the activist firm taking a stake in 3m care spin off, by restoring margins and simplifying its portfolio. and then a planned $23 billion deal has fallen apart. in a memo it said it was tough to say no to such a humbling offer but it would continue to pursue it's plans for an ipo, and they cited antitrust and investor concerns as part of the

reason for abandoning that potential deal. coming up next, we will talk value investing with john rogers, with aerial investments, and later in the program, we have house oversight chairman, james comer, talk health care costs and other issues. we'll be right back. [window slamming] woman: [gasps] [dog barking] ♪ woman: [screams] ♪ [explosion] [explosion] ♪ [lock clicks shut] when you need to prepare for unpredictable adventures... (gasp) you need weathertech. [hot dog splat.] laser measured floorliners front and rear. [drink slurp and splat.] (scream) seat protector to save the seats. [honk!] they're all yours!

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♪ welcome back to "squawk box." we have got a lot of ground to cover this morning with our next guest in town at the table for markets that particular value stocks, the economy and so much more. here with us is value investor, chief investor of aerriel investments, john rogers. >> a lot more humid here. >> before we get into the names, where do you think we are now in the cycle to the extent you want to weigh in on the election and how you think it will impact

things? >> i think we are at an inflexion point and we talked about it a lot lately, reminds us of 2000 when the internet bubble bursts, and it was a great time to be a value investor. we have been out in the wilderness for long time and we think it started ten days ago, and gross stocks have gotten to be challenged. i am optimistic for this sector to be left out. >> what do you think happened ten days go? >> there's a sense interest rates will be lower, and that will help smaller businesses deal with leverage, and we think that's important. >> what is your gamble on what jay powell does with the timing? >> i think it will happen in the fall. very optimistic that the fed is on top of its game. they really are. >> preelection, post election, or does it matter? >> i think it will be

pre-election, and they will keep us out of a recession, which is so critical in this environment. >> now that the election has been completely scrambled, if you will, and how does that change the in a couple of weeks think we probably don't even know at this point. >> it is a different time. this is really an amazing event over the weekend. but i've gotten more calls and texts of people who want to have events, who want to get engaged and helping kamala being elected president. the energy of the young people who just are, you know, calling and writing and saying they want to be involved. i've never seen anything really quite like it since the obama election. >> so you don't -- so you think -- do you think it matters who her vice president is? >> i think it matters. i think they have to get someone who will help us in a swing state and give us credibility there. and i think, you know, there are some terrific dwgovernors out there that could do a great,

great job. >> do you have a name? a preference here? we're showing you governor josh shapiro, mark kelly in arizona -- >> j.d. pritzker from illinois? >> i can't not mention j.d. as a favorite. he's my hometown governor and favorite governor. >> a lot of money. he could fund the whole campaign. and wouldn't even notice. >> that's true. and he's done very, very well. he's done really well in illinois. >> let's talk about some of your picks. obviously, you own paramount. you've been very vocal on that. i don't know what you think is the current state of play and what you think may happen. lawsuits and otherwise. >> well, i'm optimistic. there's still a possibility someone will come in over the top during this 45-day shop period, as we do our homework and do our channel checks, you hear people talking about tlar people out there, out in the wings, maybe looking for an opportunity now that the company is in play. it has been the most extraordinary situation i've had in 41 days. i've never seen a company make

the kind of decisions they make, have made, the mistakes that they've made, and most importantly, not keeping all the shareholders being treated equally, the a&b shareholders. they've told us all along that all shareholders will have the same economic spinterest. it's in their financial reports. and to come out with different answers here is just extraordinary. luckily, i've been on some boards that are family controlled from "the new york times" to ryan specialty, to nike, phil knight, and in no time would you think that those rate leaders, pat ryan and ryan specialty, the salsberger family, would do something to disadvantage all the shareholders. >> if the deal is on the table, is the deal that is the deal, what are you going to do? >> we'll stick with it. we think there's a lot of value there. they've got such extraordinary brands, such global reach. we know from owning sports to news to the "mission: impossible" franchise -- we go on and on. >> you'll stick with it and you

won't sue? >> we'll stick -- i think -- well, we always are talking to our lawyers, making sure that we see what's possible out there. >> and what are your lawyers saying? >> we're still a work in progress, but everyone seems think currently that the shareholders haven't been treated fairly. as you know, i'm very good friends with mario gabelli, and he's out there making noises around how to make sure all the shareholders are treated fairly and we agree with that. i don't blame skydance for negotiating the best deal for them. >> who do you blame? the committee that's responsible for accepting the offer? >> i think old board and the old management didn't do their job in positioning this company well. they passed at the sale of b.e.t., they passed on the sale of showtime. they made so many different strategic errors along the way that made them get into this problematic phase. and i think that the process was not run smoothly. as we all know, all the leaks that happened, it's just something that was just out of this world. >> do you think it's over in

terms of the ghost shop. anybody else potentially looking at it? >> i'm still hopeful. you hear rumors that different people are looking at it. it wouldn't shock me, some of these large streamers that have so much money this they could go out and why it for a rounding error. you just think about a netflix, they need sports, you know, cbs -- >> do you think a regular ltor under this current administration, under the administration you would like to see get in place, or even in a trump administration, which i think you probably don't want to see, do you think any of those administrations -- >> how'd you figure that out? that's amazing! >> what -- >> no, you just have this ability to figure things out like that. >> well, he said it himself. >> yeah, exactly, so you think, maybe -- sorry, go ahead. >> no, listen, all of you know i'm a democrat and very much of a believer in kamala, and i think she will do a great job. >> but do you -- from from an m&a perspective, in terms of the

regulatory environment, you're suggesting, for example, that netflix could buy something. do you think netflix could buy anything? >> i think they could. and i think it's going to change. with a new administration, people don't stay in those positions forever. we know we have people like lina khan that have been very outspoken -- >> so you think kamala harris would replace lina khan -- >> i'm not in a position to talk about who she's going to be putting into her leadership roles, but i would say, it always shifts when you go to a new president. >> do it this way. do you think that vice president harris, if she becomes the president, would have a more progressive view of regulation or a more centrist view of regulation than president biden did? how about that? >> i think she -- i had a chance to see her last week, she is an extraordinary leader. and someone who will bring great people around her. and i think, and i've talked to people at treasury, talked to

other departments who have worked very closely with her, who have talked about the fact that she wants to work with small business, wants to see businesses grow in this country. that's one of the leaders founded the economic coalition -- >> you think she'd be less progressive than the current -- >> more in the middle of the ground. and a supporter of american businesses. because she understands, that's where the jobs are. that's where our tax base is. >> three other companies i want to talk about. mattel, i'm fascinated by your take on madison square garden entertainment right now. what do you think is happening? >> i think with mattel, we've got our fingers c.o.d. there were rumors yesterday that it could be sell, hasbro looking at -- >> by the way, do you think a regulator would allow hasbro and mattel to merge? >> they've had off and on talks for years and years as you know. >> right. >> i think right now, it's such a small bit of the overall entertainment industry. mattel has justed to being also

an i.t. company, making great movies like "the barbie movie," they would be able to get a deal done, but private equity has lots and lots of cash, lots and lots of value there at mattel. and ian is a terrific ceo. very, very smart. >> esg? >> esg is a favorite of mine, as you know. i love the fact that the garden can't be replaced. it's one of a kind. warren buffett always says, you want to find a company where there's a real moat around it. there's a true moat around the world's greatest arena. and it will be hot this year with the knicks coming back and being close to a championship caliber team. we think it could happen. the rangers are great, and they continue to control radio city music hall with the rockettes and the christmas spectacular, the beacon theater, the chicago theater.

i thi i think msge is in a wonderful position to continue to thrive. they own the air rights above the garden. there's been lots of rumors about all kinds of transformative real estate. i think they'll a big beneficiary of that over time. >> by the way, what's your take on the sphere? >> we still love the sphere. everywhere i go, people are talking about the sphere. and i think it's going to be -- they're going to be able to franchise it around the world. that's going to be a really big deal. >> how many spheres do you think there really can be? and don't you think that once you have multiple sfepheres, it takes away the value of the other spheres? >> i think it's probably four or five. and you think the ip that's created in vegas will be able to play all over the world. and they're already re-using the ip, the rumors of having a u2 video, movie that will play inside the sphere, even though they won't be there live. there's been rumors about a wizard of oz hour-long show that will use that ip, and you can

see that being transportive as they grow throughout the world. and a capital light model, which will bring cash flow into the business. jim dolan said it should be happening soon. we're waiting anxiously for that. and they're going to have a great winner with the eagles company and all the other special that i think so will be going on inside the sphere. and it's been fun to do the research. it's been fun to go there and see, go with my daughter to the opening of u2. it was just such a spectacular, memorable, memorable moment. and look forward to more and more. and finally, ai will help them a lot. they'll be able to do even more magic within the sphere, and be able to do it cheaper. and things are just -- it's going to be much better than people could ever imagine. >> while we have you here, do you have a view on what's happening at nike? >> i've loved the opportunity to be on the board of nike. it's just an extraordinary, extraordinary place. and the culture that phil knight has created is one of a kind. so i'm optimistic long-term. i think we'll be back on track

and growth will be back on track. john donahoe's leadership is really vital. and the team that he's put around them are very, very talented. >> do you think there's an innovation issue there or what do you ascribe the complication at the moment? >> well, they're always innovating. and you know, they have these shoes that help you run faster, that have been extremely successful. but they've got all kind of new, creative product coming out, new colors, new styles. they're really on top of their game. and i think you'll start to see it, as the year goes forward. >> but that stock price has got to be disappointing to you. >> you know, it's been -- it was a disappointing quarter, and you know, it's been a difficult period. but they have the spirit, the camaraderie at nike, the teamwork at nike, the competitiveness. it's like i've never seen before, the way people come together there as a team to build something great. and you know, phil had just left us with this wonderful culture, even though he's still involved, was it's just still there, the

kind of values -- >> what do you have on your feet there? >> i do wear them -- he's got loafers on. >> i often do wear them with my suits. >> i wear sneakers with suits. john, great to have you in. >> it is 8:00 a.m. on the east coast, and you are watching "squawk box" on cnbc. i'm becky quick along with joe kernan and andrew ross sorkin. among today's top securities, cloud security company whiz walking away from a potential $23 billion deal to be acquired by google. telling employees that it would pursue an ipo as previously planned. coca-cola topping second quarter earnings and revenue expectations. that company raising its full-year outlook at this point, saying it now expects organic revenue growth of 9 to 10%. that's up from a prior forecast of 8 to 9%. coke also raising its outlook for comparable earnings growth, and that stock right now up by about 1.7%. and nbc universal and cnbc

parent comcast posting mixed second quarter results, among the highlights, peacock paying subscribers increased by 38% year over year to a total of $33 million. its smaller than expected loss in broadband customers helped to upset some weakness in the theme park business. the stock right now down by 2.3%. >> okay, the futures this morning, as you can see, are mixed, as well. we've got the nasdaq has ed mar. take a look at treasuries. take a look at 4.23 on the ten-year. let's get back to dom chu with a look at more of this morning's earnings movers and then i've got some names for you at the end that i think you'll have to pick one. they're all good. >> okay, all right. i'll wait and see what happens there. let's get you caught up on some of the other big earnings movers of the morning, besides coca-cola and comcast. we'll start in autos and shares of general motors which are up by 4.5% right now, just around

280,000 shares of trading volume. gm posting a profit and revenue beat. it also raised its full-year guidance, helped along by better results in north america, where truck and suv sales continue to shine. now, gm did say it's taking steps to turn around underperforming operations tied to both china, as well as its electric vehicle ambitions. watch gm, shares up 4.5%. next up, you have shares of u.p.s., reporting a miss for both profits and revenues. they cited amongst other things, higher labor costs and less demand for small package delivery services. u.p.s. cut its full-year adjusted operating margin forecast. it did, though, say that it expects some of those cost pressures to ease up in the second half of the year, but those shares are down 7.5%. we'll cap things off with a check on spotify, up near 13% pre-market. profits beat estimates, revenues were in line with expectations, and those profits were, by the way, a record level. it also gave a current quarter

forecast that topped estimates as well. on balance, spotify technologies, up almost a doubling in one year, up 13, 14% so far this morning, joe. i'll send things back over to you. >> you've got a pick here, we've got the domster, we've got d dominique or dominique, and these are my favorites, the dominator. >> i'll tell you what -- >> one more! >> the dominatrix. >> i will tell you right now that as a golfer, if you get -- i get a lot of grief and laughs, because my golf bag is embroidered with "dominator" on it, alongside an american flag. i could use dominator. that could work for me. i've already got the gear to go along with it. >> evans -- one of our producers nailed it. so it says the dominator right on your -- you didn't go with dominatrix, that was probably smart. >> i'll leave it at that.

>> thank you, dom. coming up, big interviews, big interviews with the house oversight committee chairman, james comer and cc ceo adam erin, phil swegle, and galaxy ceo, mike novogratz on the expected start of trading for spot, ether, etfs and much more. "squawk box" will be right back. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy to-use tools make complex trading less complicated. custom scans can help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market.

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all right, our next guest joins us on a pair of big stories. today's house oversight committee, looking into pharmacy benefits managers and yesterday's contentious hearing involving the secret service director and calls for her to resign in the wake of the attempted assassination of former president trump. joining us right now is the chairman of the oversight committee, kentucky republican congressman james comer. and sir, thank you for being with us today.

where would you like to start? >> you're the boss. wherever you want to go. >> okay, why don't we start with first of all the business end of things. why don't we start with what we just stepped up with, go tragt into the issue of the pharmacy benefits managers. there's been so much contention and so much concern with americans and what happens with prices for their pills, with prices for what happens along the way, things they can't afford, and there's plenty of blame to go around, depending on who you ask. what would you like to hear from these pharmacy benefit managers today? >> well, this will be our third hearing over the past year and a half with the pharmacy benefit managers. this hearing is unique, we're having the ceos of the three largest pbms in today. they control 80% of the prescription drug market in america. the problem that we have with the pbms, and we're issuing a report today, that summarizes our investigation over the past year and a half, these three companies are vertically

integrated. they have apparent health insurance company. we have caught several instances where they have ordered the patient to take a higher-priced drug. the pbms were created as a middle man to help reduce the price of prescription drugs. one of the biggest issues in america is americans frustrated with the ever-increasing cost of prescription drugs. the pbms are not doing what they were created to do. they're not saving the patient money. they're actually costing the patients more money. they're price gouging, and in addition, another part of our investigation, they're stealing patients from independent pharmacies. we want competition. as a republican, as a free market guy, i want competition. i believe the best thing we can do to reduce the cost of health care in america is to have more competition. what we see with pbms is we have less competition, and these companies are vertically integrated, driving out the mom and pop businesses, and

increasing the cost of drugs for consumers and for medicare, and for the taxpayer. so these pbms will have a lot of explaining to do. i think that we need to significantly reform the pbm industry in america, and i believe that they need to answer a lot of tough questions today. >> congressman, do you think the original sin with this is allowing these companies to be bought by bigger companies, whether that be a pharmacy company or a health insurance company? >> yeah, what you have now with these three big pbms that control over 80% of the market is they actually own the medical clinic, they own the pharmacy, and they own the health insurance company. and what they're doing, they've controlled such a big percentage of the market now. they're actually steering doctors towards prescribing more expensive drugs. and instead of buying the drug from your local pharmacist, who you have a relationship with, who you can talk to and understand more about the drug you're taking, they're requiring them to go through the pbm's

mail order pharmacies. so the pbms were created to help these pharmacies reduce the cost of drugses, but what's happened is, they've become vertically integrated, they focused solely on profits, which as a republi republican i'm all about, but they're doing exactly the opposite of what they meant to do. they need to be busted up. >> like an at&t-style breakup. >> yes, absolutely. absolutely. >> and do you have an agreement from the other side of the aisle on this? >> yes, yes. and anytime you can get bipartisan agreement on the house oversight committee, it's a pretty good day. we had that yesterday with the secret service director. i know you want to talk about that in a minute, but this issue today is one of the few bipartisan issues in congress. what we've learned, and i give our house overnight committee a lot of credit for this, we have through our investigation and through our messaging, we've educated members in both parties

about the perils of pbms, about the fact that the pbms are not doing they're doing what the lobbyists want them to do, and the lobbyists say, we're reducing the cost of prescription drugs for the american consumer. that's not true. they're actually increasing the costs. and we believe they're gouging medicare and that should be a big issue for every member of congress up here, because we're struggling to pay for medicare. >> so, do you think the government, through medicare and medicaid, should be able to negotiate with the drug companies, as well? >> i do. and that was one of the things that the pbms were created to do. but they've become profit centers, and they're actually, in my opinion, gouging medicare in many instances. so, you know, the theory up here that the bernie sanders have, let's just have medicare for all and let's just put price caps on drugs, and let's let the pbms

handle all of that. that's failed miserably, okay? we need to have significant reform in the prescription drug business. look, i support the pharmaceutical industry, i believe that you need to be rewarded for research and development. i really believe that. and i believe that you have to have competition. i believe we need reforms and patents so that the big drug companies can't create a drug and have a patent forever and renew that patent and never get generic drugs online. there are a lot of things we need to do to reduce the price of prescription drugs. patent reform is one of them but i think pbm reform is something that can be done that will reduce the cost of drugs for everyone. and we want more competition, and what we're clearing seeing with pbms, they're driving out these retail pharmacies, especially in rural districts like i represent in kentucky. >> if you think the pbms need reformed, it is something that has to be driven by the government? what's the next step? i assume you don't think that they'll be able to do it on their own?

>> no, they won't be able to do it on their own. they say they will, they do these studies, they have these fancy lobbyists that come up here and don't understand the issue, a lot of things i don't think that are actually true. what we need to do is pass legislation. this needs to be a significant effort by congress to reform the pbms. they have anti-competitive policies, they have actually increased the cost of the taxpayers. and more importantly, increased the cost to consumers. there's no transparency, in many instances, i've had pharmacists say that they were extorted. they used the word "extortion" when they talk about pbms. they just claw back money from the independent pharmacies. and doctors are furious, because they want to prescribe a medicine to a patient, but the pbm then steps in and says, no, that prescription isn't good enough. we want this prescription. it costs a lot more. we'll make a lot more money. that's not in the best interests of the patients and sure as heck

not in the best interests of the taxpayers. >> congressman, this obviously is an issue that matters an awful lot to people locally. this is just something that hits home to everybody. how likely do you think there is that you would get that legislation passed and if so, when? >> well, a year ago, i would have said, very unlikely, but today, i think it's very likely. i think this report we just issued, "the wall street journal" did a great story on it this morning. i think this report shows that there have been abuses by the pbms. i think we need some type of pbm structure. i think if the pbm went back to what they were initially created to do, that that would be a winning scenario for everyone. but what's happened is, they've gotten too big, they've gotten vertically integrated, and they've abused their power and the american consumers are the losers. the american taxpayers are the losers. we need to have legislation to reform the pbms. we've passed legislation in our committee to reform the federal

health insurance plan with respect to how pbms build that gigantic federal health insurance plan. my committee has jurisdiction over the federal workforce. so we were able to do that. but the full committee that has most of the jurisdiction over the pbm reform is the energy and customer committee, and we're delivering a copy of our investigation to every member of the house, energy, and commerce committee, because the ball needs to star there. >> congressman comer, thank you. we spent the bulk of the time, actually all of the time on this issue. i think it's the most interesting one to our audience. and we'll have you back, as this progresses. thank you for your time. >> thank you. coming up next, amc's ceo adam aron will join us after his company announced a big debt restructuring deal. and later, galaxy ceo mike novogratz on the impendi ng launch of etfs and the race for the president. all of that and more as "squawk box" rolls on. plp and i can't ♪

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. movie theater chain amc reaching a new debt restructuring deal. the agreement will extend the maturity of potentially $2.5 billion worth of amc's debt and reduce its overall debt load by more than $460 million. joining us now, amc ceo, adam aron. and i know you're out of the country, you're in turkey, adam. and we haven't seen you, i don't think, in a while. you haven't been on cnbc or on "squawk box" in over a year, i don't think. this was something that you really wanted to talk about today. >> well, i saved this moment for the biggest news that amc has made in years. i just can't even tell you how important it is that we extended our debt maturities from 2026 to

2029. it gives us years and years of breathing room, and it's coming at a time when the box office finally, after four, tough, turbulent years, the box office is finally roaring back strong. it started in early june with "inside out 2," "despicable me" was a big hit, "twisters" was a big hit, and as we look ahead, we have so many big movies coming this fall and in '25 and in 2026. so the fact that our first-lien lenders and second-lien lenders have agreed to give us another four and a half years or more to repay back our debt, this is an enormous step of progress, an enormous vote of confidence in amc's future. >> part of the deal would be i

guess to retire some of the debt through equity, and the stock initially went up, so other times in the past where you've had to do that, the stock has gone down. so there was a real concern in the market place about the viability long-term of amc, you would say, with debt maturities that were in '25 or '26. this takes that off the table. you'll be around and be there for the recovery in the motion picture industry after the strike. >> joe, you just said it perfectly. the press has been filled the last several months with anxiety that amc may not be able to fund the $2.6 billion that was owed in april of 2026 and there was lots of loose talk in the press, not by us, about the risk of bankruptcy. i've been quoted over and over again, saying i thought that was inconceivable, and that we would

be taking steps to assure amc's future. and that's what we did yesterday. i remind you, in january of 2029, and april of 2030, our next very large maturity dates are years and years away from now, and as i said, it's coming at a time when the box office is finally roaring back. our profitability will rise if and when the box office rises. this is all just such a good news story for my company and for our shareholders. >> what did you have to give up to get the debt restructured? kid you put some of the physical prop properties in -- is there a lien on those? how did you get the lenders to agree? >> i think one of the ways we got them to agree was to show them how well we've been running the company since covid hit in march of 2020. our company raised over $3 billion of equity underneath the

debt and the capital structure to buttress and strengthen the company without asking our lenders for any concessions at all, and they rewarded us for that. there was a whole series of collateral changes between one debt instrument and another, some interest rates went up, some interest rates went down because we tookd some of our debt and turned entitle a convertible debt instead. the deal is very complicated, and any investor who wants to know more should go to our s.e.c. filings. but we didn't give up much of anything. we just convinced our lenders that this company has been run well, this company has the support of consumers. the box office is finally growing again and we should be there to take advantage of that. they greed with us. skbef all the time in the world to get there now. >> are you going to produce anymore movies? is that a new model? and how did that -- how did the eras tour, the most successful

concert film ever, did that give you a little bit of a bridge in terms of incremental revenue? >> yes, yes, and yes, joe kernan. and i'm going to share something with your audience that they may not know. yes, the taylor s.w.iwift "the tour" was the highest grossing film in history, the highest grossing documentary in history. guess who amc owes the eras tour to? i got a call from you and you said, you should turn that into a movie, and i could introduce you to taylor and her camp. and i took you up on that invitation, so i give you full credit. and not only did we produce the taylor swift eras tour movie, which was the first movie that amc has ever distributed in over a century, but right behind that was a beyonce movie, beyond that we did a listening event for

billie eilish's album release in may. we have more concert film announcements coming, some in the very near future skpu we're very excited, this is a new line of business for amc, and i guess we owe it all to you for the idea, but especially to taylor and beyonce and billie, and the world-class artists who are going to be next in line. >> that was a strange confluence of events. i have known taylor's dad for a long time and they had been speaking to the studios, and not hearing what they wanted to hear. and it occurred to me, would it even be possible to go -- i go, scott, have you heard of amc, and he goes, amc, what is amc, america -- i said, do you know the theater? he said, i know the bijou

theater ain my hometown. i called you, you called him, and i was shocked three months later that -- but the check's in the mail, is that it? how much did you make? i don't -- that won't work. all i get is your gratitude and scott's gratitude, i guess. >> a big thank you in front of all of your viewers. how's that? yes, this movie grossed $271 million. and it was the beginning of a whole new line of business for amc, because beyonce's movie was big, there are more concert films coming. these are -- you know, if you think about all the challenges that have been thrown at amc since covid, i don't think there's a company that i could remember that's had to deal with all of the trauma and industry and industry pain. and remember, with the exception of these concert movies, dwwe don't make movies, we just show them. and we rely on major studios for most of our content. it's been a tough four years. fortunately for us, retail

shareholders embraced amc, invested amc, they threw their love, their heart, and their passion at amc. obviously, they were happier when the share price was going up, than when the share price was going down. in the past two months, amc's share price is up 81% in two months. and i think that the fact that the box office is coming back, and that yesterday, we were able to announce almost a five-year runway before our major debt maturities are due, these aren't just enormously positive steps forward for amc, and i'm happy to talk about them here you today. >> well, yeah, that is -- '25 and '26 is right around the corner, we know that now as we get a little bit older, and that definitely gives you the breathing room. we talk about it a lot. i don't -- i can't imagine a world where you don't have a big opening for a blockbuster movie. that's just never going to be on your tv screen at home,

hopefully. hopefully there will always be that great artificial buttered popcorn to watch a big movie with. i don't want to live in a world without amc. >> they're coming and coming right now, joe. >> they are. >> this coming friday, "deadpool and wolverine" opens. we think it has a chance of being the highest grossing r-rated film in history. just this fall, there's another "joker." universal has "wicked" coming out, a great movie of a great broadway musical. an "alien" sequel is coming out in august. disney's got "moana," there's a mufasa lion king movie coming out in christmas. there's going to be another "star wars" movie, another "avatar" movie. you know, it's just one after another after another. "mission: impossible" 8. there are so many good movies

coming out of and that's why we're so optimistic about amc's future, so bullish about amc's future. look, it's been a very, very tough four years, but i think we've navigated turbulent waters about as skillfully as they could be navigated. our shareholders have stayed with us, our millions of retail investors, our lenders proved just yesterday that they've stayed with us. and finally, i think the good times are about to roll. >> great. adam, thank you for bringing that to us. and for bringing it all on cnbc, exclusively. appreciate it. thanks. >> thank you. >> okay. when we come back, we will be joined by the director of the congressional budget office. also, galaxy ceo mike novograt on the new crop of spot etfs. "squawk box" will be right back. you ride the line between numbers and people.

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our next guest runs the government's non-partisan congressional budget office. in a recent update, the cbo said the u.s. budget deficit will rise to almost $2 trillion in 2024. that's the largest amount

outside of the covid era. joining us right now is the cbo director, phil swegle. and phil, thank you very much for being with us. you've been trying to warn about what the continuing challenges are and maybe growing challenges are in terms of meeting some of our budget issues. why don't you lay out what you think the biggest risks are right now, how much more complicated this is getting. >> yeah, thanks so much. thanks for having me on. you know, the near-term danger is rising interest payments. that interest payments are nearly $900 billion this year, which is more than defense discretionary spending. and it's set to rise. rates are not skri ryrocketing, higher than in the past, and we have more debt. by the end of the ten-year budget window, we have the social security trust fund exhausted and the medicare trust fund exhausted just after that. that's the challenge, things just get much more difficult over the next several years. >> what happens if the fed lowers interest rates. does that save us? >> you know, lower interest

rates would help on the federal deficit side, you know, if that means that net interest payments go down. you know, on the other hand, the amount of debt has gone up by so much, that even modestly lower interest rates won't change the fiscal trajectory. >> i guess, when you look at it, though, it does make me wonder if there's going to be pressure on the federal reserve to do the right thing, lower rates to make this easier. what would the end result be if that does happen? >> yeah, it's -- you know, certainly those pressures would be a danger and the fed is independent and its officials have explained that they will maintain that independence. so i think we can put our trust in the fed. you know, a tension between fiscal policy and monetary policy would result in either higher inflation or higher interest rates that affect the government debt. and that's the kind of tension that really could pose a challenge in either direction. >> would you label this a crisis

today? >> no, it's not a crisis today. i was looking at your screen, the ten-year yield is just over 4.2, as of this morning. you know, that's not a crisis, it's manageable. it's a challenge that's growing over time. and that's the problem. we need to act now to head off the bigger problem in the years to come. >> i feel like i've been listening to the same story for more than 20 years. people warn that this needs to happen. we have not hit a crisis point. we have not had a point where buyers say, forget it, we're not buying anymore of your debt. we haven't seen treasury yields skyrocket as a result. and so people have become a little inured to this. when do you think this stuff really does hit the fan? >> yeah, you know, i think what you pointed out is really important. that, you know, "a," there's not a crisis today, but "b," the risks are rising. and the challenge for policy makers is to look ahead and to say, you know, i can't identify exactly when the crisis point

will come. you know, when the rest of the world will hesitate to buy u.s. securities, to buy treasury securities, but we know it's coming. and we need to act before them. you know, and that's going to be a challenge for whoever is next president to look out ahead and address the fiscal challenge. >> neither party seems to be stepping in and saying, you're right, we need to do something about this. both sides seem to be looking at spending more. >> look, there are many challenges facing the country, and policy makers want lots of different things, more no one was hurt spending, more social spending, some policy makers want tax relief. there's the 2017 tax act. much of it expires next year. there's lots of desire for spending or tax relief and that's the challenge, to address those desires in a fiscally responsible way. >> we talk about modern is monetary theory. the idea, it's okay, you print more, maintain rates or lower

rates. we work our way out of this. what do you say when you are given those options by leaders on the hill? >> you know, that was something that when i started at cbo in 2019, i heard a lot about. and it seemed like a philosophy more than an economic theory. and now, after the high inflation that we saw in 2021, 2022, the inflation has come down, but those discussions of printing money and you know, sort of unlimited spending have subsided. you know, maybe that's the first step towards fiscal adjustment, is instances -- focusing on the problem. >> phil swegle is the director of the cbo. i want to thank you for laying this out for us today, phil. >> thanks so much. coming up next, galaxy ceo mike novogratz will join us on the evolving race for the white house, this after he called for president biden to drop out of contention. plus, those new spot ether etfs. stay tuned, "squawk" returns after this.

welcome back to "squawk box." we are fortunate to have our next guest on two topics in the news. they are expected to stop trading on ether etfs and the 2024 race for the white house. he had called on president biden to drop out. he got what he wants. joining us exclusively is mike novogratz. let's talk ether first and we'll get into the election here. how much of a game changer is this today? we were talking to pomp a little bit earlier. he said he thought there was going to be less enthusiastic for these etfs than there were for bitcoin. >> sure. listen, i think this is, you know, one more step in the total adoption of crypto as an asset class for institutions, right? these etfs make it easier for everyday americans and institutions to participate in these ecosystems. and it will lack some of the excitement, because bitcoin was the first time we did it.

and it was larry fink deciding crypto was important. there was a whole narrative there. this is step two. i think it's important. you know, we think it will be about 20% -- 20% as many flows will go into the ether etf in the first six months that went into bitcoin. remember, the bitcoin etfs are over $60, $70 billion, right? and so significant money. and so, it's definitely a positive. it's just not going to be the chaos that we saw around the poison etf. >> in terms of just what you think this looks like, though, over the next two or three years as a result of the etf. obviously, there was a big move in bitcoin. do you see the same kind of big move over time? >> i do. i think crypto as an asset class has become a real thing. we're not going back. you know, the big story this week is bitcoin nashville. the big bitcoin conference in nashville where president trump,

five or six senators, congressman, you name it, are showing up there. there is a rumor that they're going to going to announce a bill she's going to propose, that president trump is going to make a big announcement around either a strategic reserve of bitcoin or something to that degree. think about that. this is national politics now, where the republican party at least is saying, hey, there are a ton of single-issue voters and i want them. and so the crypto community has become a voice. and that's not going back. i personally think that i really want -- i would love, you know, the presumptive nominee, kamala harris, to show up at bitcoin nashville, too, because i don't want crypto to be republican-good, democrat-bad. and i don't think that's going to be the case with biden stepping down. i think the gary genzler/elizabeth warren faction, at least i hope, or i

think will have a lot less to say about cryptocurrency. but make no bones about it, trump is seizing, you know, bitcoin, and wants those voters. so stay tuned on friday. if they announce something like a strategic reserve where they buy a million bitcoin -- >> does that make any sense to you, though, a strategic reserve? you think that's a good idea? and do you like the idea that it feels like this whole thing is being -- politics are being played? >> i have been consistent anytime i've been on any tv program or any audience, i really think this needs to be bipartisan for us to really be vibrant in the long run, right? and so, listen, splpersonally, i like the idea of someone buying a lot of bitcoin? we own a lot of bitcoin, the price is going to go up. i would rather have right and left get together and realize this is an important technology for america. and we want to lead in it. and we want to encourage

companies like mine and so many others to build here and feel comfortable building here. >> let's talk about the vice presidential candidate, or i should say, the vice president who is now the presidential candidate. you had wanted president biden to step down. is this the outcome you wanted. >> listen, i have, for 18 months been saying, we need to have had younger people in leadership positions. more in touch with what's happening in the world, more in touch with the planet. and so i think biden stepping down was essential and i think it was a great thing. and i tip my hat to him for doing it. i would have rather had a fair process, where america -- you know, the 4,000 delegates got to hear lots of peoples pitches. the real politic of it was setting up a campaign with 3,000 employees in 107 days seemed too daunting for most people. and so, we now have the

presumptive nominee, kamala harris -- i don't want to pre-judge her. to be fair, i haven't seen her in three and a half years. she has really been in the shadows here in this last administration. so, listen, if you get the kamala harris who was one of the most progressive members of the senate, i don't think it's a great thing. take the temperature of the country at this point. the country wants decency, it wants to move more towards the center. so again, i don't want to pre-judge her. let's see what she says in the next 30, 60, 90 days. i do think it's going to make the race a lot tougher for donald trump. you know, we're going to go to bed on election night the same way we were going to before biden's terrible debate and the assassination attempt, where it was going to be, you know, flip a coin and pray for your guy. >> mike, i want to ask you about this back and forth you had with bill ackman on twitter.

where he effectively said that if she wasn't the nominee, it would be an acknowledgement that she was never qualified to be vice president, therefore she'll be the nominee. and you said, i'm not sure i agree. presidential candidate picked vps to increase their chances of winning. that's the truth. the democratic party should pick the ticket that they think has the best chance, period. do you think they have? >> listen, i think that ship has come and gone, right? i would have rather had a process. i think two swing-state governors with a centrist track record would have more represented where america is today. i fundamentally believe that. that doesn't mean kamala harris isn't going to have a good chance of winning. she has raised $110 million in 36 hours. i haven't seen a candidate do that. the democratic party is energized, people are energized. women, the black community is energized. so we'll see. for me, what's important is what she says in the next 100 days.

she had one of the most liberal voting records in the senate. you know 99 out of 100. that's not where america is today. so she's going to have to pivot, right? there's a big difference between being a president and a senator. and if she shows up as presidential, presidential, reads the temperature of the country and moves to the center, i think the democrats will have a good election. her vp pick, whether mark kelly or josh -- >> shapiro. >> shapiro. that's are all good steps. not that they take my advice, but if i was her, because economics are so important, i would reannounce the secretary of treasury. i know trump is thinking about doing that. we're going to have eight years of unbelievably complicated debt-to-gdp deficits. >> who would you like to see as a treasury secretary under a president harris and who would

you like to see under a president trump? >> because -- you had the omb guy on before, we're in crises. we're in a four-alarm fire with debt-to-gtp with 130% with a trillion in debt every hundred years. neither party is talking about it. i think it's essential you get someone of global stature. larry fink and jamie dimon's name keep getting kicked around. they could be secretary of treasury for either party. they stay in the center. we need someone who thinks about the country first and is less political because it's an unbelievably complicated job. >> mike, probably hard to pre announce a treasury secretary of somebody who already has a current job though, right? >> agree. >> imagine that's only going to happen -- the names you just mentioned would only contemplate this after they knew who the

president was and could at least take the temperature of what to do. >> agreed, agreed. listen, lloyd blank fine has been sitting on the sidelines for a long time. he would be an amazing treasury secretary. people may say too much goldman sachs. there are a tremendous amount of very knowledgeable, very competent people that could be in that seat. i just think it needs to be a global stature and somebody who understands wall street which we haven't had for a while. >> speak to this. you and bill ackman -- bill ackman had been voting for democrats prior to this. both have been out there saying they thought it should be a different candidate than president biden. what's very interesting now is in ackman, he went a different direction. he not only said i don't want biden, he said he's going toward trump. you've obviously taken a

different tact. do you think he might come back to harris at some point? i'm curious. to the extent he's a proxy to a group of people who said, what, i can't vote for president biden mostly over age issues and other things. do you see that cohort switching gears now? >> listen, if kamala harris pivots dramatically to the center, maybe, right? i think most business people want decency, rational economic thought. and wants swuns who can read the temperature of the country as starts healing us as opposed to dividing us. the republican convention was unbelievably aggressive. it was divisive, us versus them. if the democrats do the same thing, we'll be in the same position as the last eight years. i think the hope of trying to get president biden step down and have a process, you'd pud a

josh shapiro or gretchen whitmer. >> no chance for you to go to trump? you don't have to worry about the crypto, the wealth tax, don't have to worry about regulation. we keep asking if anybody is going to come back like they should be with the democrats. why can't you consider -- we had a guide on the other day that wouldn't even meet with trump when elon musk said why don't you talk to him, why don't you meet with him. >> i asked bill ackman this question, if 41 of his top 43 employees wouldn't join his next hedge fund. >> i can give you names that would go back -- worked in the first trump administration. it's about policy. i know he's had those mean tweets and all those horrible things, mike. it's about policy. obviously as a businessman, most of those policies are more akin to what you believe. so this is all about just the bad orange man. >> listen, if donald trump pivoted --

>> pivoted where? >> pivoted emotionally, after escaping assassination, if he came out with grace instead of degradation and belittlement, i'd be there. i didn't see it. >> all right. he's mean. >> mike novogratz, thank you, sir. appreciate it. up next, semiconductors getting hit this morning. the rswot. we'll take a look at. the mega seven -- is it maga seven? no it's mega seven. we'll talk with an analyst. ameritrade is now part of schwab. 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

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schmuck stocks getting hit, especially nxp. earnings were pressured by weak auto demand and competition in china. joining us ray wong, founder and chairman. how are you doing, ray? i'm trying to figure out what you mean by this. it looked like we were in a tech rotation. interest rates coming down, good for tech, good for maybe broadening the rally out. you say political news now ahead has the markets confused about what might happen with tariffs or regulation? what do you mean? yeah.

the big thing is we thought we were in a trump lally and we would be moving to broader b based, russ sems, smaller caps, people are wondering if this is where we're heading. the mag seven had been areas where they flight to safety. they're also growth vehicles. they're not mutually exclusive. what we're sitting on right now is people coming back into tech as they saw the dip and wondering what's going to happen with the election, so they're taking a pause on that. tesla earnings coming up and google earnings will set the stage as to how tech was doing and how the mag 7 are going to perform. >> still about the mag 7. these are two important results we're going to see after the bell. we only got about 30, 40 seconds, running a lit late, what do you think we'll see tonight. >> i think we'll see interesting things on tesla, just short on revenues, just under $25 billion. the big thing is not the number of vehicles. watch the mega pacs, the energy storage piece. that's a big piece in the short

term. the next piece will be the robots. of course, watch google. the ad business is still growing and strong. see what they do with ai and cloud that's acquisition of whiz is going to be an interesting issue because they want to get into cybersecurity. >> unbelievable. you did it, ray. appreciate you working with us. we'll see u you again soon. make sure you join us tomorrow. "squawk on the street" is coming up next. good tuesday morning. welcome back to "squawk on the street." i'm carl quintanilla. premarket is steady as we're coming off the best day for s&p nasdaq since june 5th. a number of high profile names raising guidance like gm, ge, lockheed and coke. as we said, s&p coming off the best session in six weeks. >> plus we have a lot of earnings reports to monitor this morning.