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.

ups, comcast our parent company, gm, spotify also a big mover in the premarket to the upside. crowdstrike downgrading following the global i.t. outage. this as the house committee calls on the ceo to testify on capitol hill. >> let's start with the markets and earnings. after stocks did finish yesterday's session with their best day since early june, jim, i know you've taken note of some names. we mentioned ge and gm. we mentioned danaher. >> i have to say danaher was one of the top five growth stocks and it lost its way. a lot of it was china. i think that's kind of in the past. they really came up with a -- kind of a danaher statement. a danaher statement means we're back to growth. things are going to be good. this is all health care, a terrific quarter. david, one of the things we have, we have some companies that are really well run that had been hurt by china. danaher is the first company

that came back and said, listen, stop worrying about china. obviously nike very important, starbucks very important. we have these companies that are hostage. not danaher. >> you and i talked about danaher in terms of what had been for so many years one of the great growth stories and great performing stocks only to hit a buzz saw, so to speak, for years. is this new a new chapter? >> yes, i'll proclaim it that. it separate friday the sar tore yous which has been an up-down company. i believe we'll see good numbers from thermo scientific. >> i just picked up -- tapped in tmo. that is looking up this morning as well, just on this i guess, right? >> yeah, on this. i think this one is back. g e ge, this is without any real orders.

remember, airbus can't make enough. boeing is -- i don't know a to even talk about boeing, but the service revenue is so great. larry culp is so great. spending a lot of time in the field working with suppliers. 15 suppliers with still a lot of problems. he's solving them one by one. we have growth. airlines, good growth. medical diagnostic is good growth. david, i've got to go to you. i'm not sure that the cable industry is providing the growth i was hoping for. >> no. we'll do a little tease here. we'll get to that in the next block of programming. >> lockheed martin? >> ups. so many names to go through. >> i thought they were in the cable business. >> not sure they'd want to be in that business either. >> it would be a step up for them. >> not going that well. >> they did return fossive u.s. volume, first time in nine quarters. u.s. domestic revenue was still

down because of pricing. >> there's just a lot of things not to like about ups. i keep hoping this will be the quarter, this will be the quarter, and it's not. when he came over, the revenue was good. i was hopeful. this is empty caliber revenue. i just find it's -- fedex was fantastic. >> there were some disappointments. ups is going to be one. we'll talk about nxp maybe. polaris with yet another tough print. you would probably argue that the positive prints outweigh -- >> there's a lot of those companies are serial disappointors now. by the way, speaking of serial, kel nova is good, but a spinoff of kellogg. the cereal not doing so well. i go back and say in the end what do i want out of the stock if i'm at home listening to the show? i kind of want coca-cola. >> you do?

why? >> coca-cola, no surprises. coca-cola has new brands that are doing well. it's an unexciting story. i want that. what do you think is the fastest growing brand -- see if he knows this -- in coca-cola? >> i don't remember these things. >> you don't know. >> okay. it's fair life. >> i've never heard of that. what is it? >> kind of a protein drink. james quincey, credit him with willing to admit that glp-1s have had an impact. i know no one knows this fair life, but fair life is a protein-based -- carl, quincey is winning. >> milkshake is number one on thelist for me. >> you're going to get rid of

the g -- the not tasting good pepsi. >> no. i don't drink soda. >> i have dow chemical on later this week, we call it dow now. >> an interesting transition. >> dow to g 1 to celsius. these are chemical-based drinks. coca-cola is doing well. when james went to me and asked what this number one was, i obviously said coke zero, small farm factor red cans. that's number two. he said, listen, you've got to start drinking fairlife. >> coke is a good example where you had volume and price mix positive. that trend is intact. >> isn't that great? >> as opposed to kmb which is going to open lower this morning. >> i just think that what people really want out of a stock is a lack of volatility. they just want it to go up they don't want plus three minus

three. look, ups -- >> what they want from the stock, carl, they want it to go up. >> positive better than negative? >> jim cramer, ladies and gentlemen. >> i'm so glad he's back. maybe you'll have something good to say about comcast. >> we want a stock that's going to go up unless they're short -- >> everyone cares about elon musk. you went down there to talk to him. >> i did. it's a long time ago. >> montoya. gm, mary barra wins and wins and wins. is there anything -- is there a statue? is there a plaque? is there anything for mary barra? look. it's down? >> adam jonas here, the jonas reaction out of morgan stanley, they beat by 14%. history suggests that good times won't last. the ft with a big piece, auto incentives up 15% in june.

>> to carl's point or jonas' point, this thing never gets a multiple. no matter what it does, it doesn't get a multiple. >> jonas likes ford. what was good in gm are the suvs and the trucks. no one makes trucks better than ford. also, you cut back on -- far wli c farley cut back on evs. >> it was the non-electric vehicles pouring gm's earnings, particularly the trucks. tvs a very good quarter, not getting rewarded in the stock market to the point being made perhaps because there may be bad times ahead. i don't know. >> jonas -- that's like when you're playing and your mom says, hey, listen, somebody always gets hurt. i see him and i say why don't you spotify me. >> we'll get to spot. paul jacobson was on squawk to tay and talked about table prizing relative to industry.

here is what barra said about china or evs, take a listen. >> the market has significant excess capacity and many startups and established competitors continue to prioritize production over profitability. we've been taking steps to reduce our inventory, align our production to demand, protect our pricing and reduce fixed costs. it's clear the steps we have taken while significant have not been enough. we had expected to return to profitn't in china in the second quarter. however, we reported a loss and we expect the rest of the year will remain challenging because the headwinds are not easy. we're working closely with our jd partner to restructure the business to make it profitable and sustainable. as we're expanding choice, other barriers to ev adoption are also improving. we're working to finalize commercial agreements with tesla to give our customers access to their charging network by iona fast changing venture. as excited as we are about our

portfolio, we're committed to growings responsibly and profitably in any demand environment. over the next few years, the ev market will be growing steadily but slowly than it did over the last few years. as a result we are adjusting our spending plans to make sure we're capital efficient and moving in lockstep with customers. >> obvious why jonas likes ford. ford doesn't have any china. i was a little worried about warranties. now we have trucks. now we have suvs. i think ford, if they did a buyback, could take this thing to 16, 17, in stetd of being in the worst quadrant -- actually one of the ten worst cheapest stocks in the s&p. this is very good for ford. >> it is for ford. >> good for ford. >> it's tough times meanwhile in europe. porsche down 4% this morning. there's an aluminum alloy shortage. >> yeah. that's a strange story.

i wonder how much that is affecting ge? >> i don't know. one european carmaker you want to own. it's called ferrari. >> race? >> $108 billion market value. >> when it became public, all reyes red jackets. it's a powerhouse. >> basically a market value twice that of gm just about. >> speaking of market value, yesterday with verizon. you missed verizon. >> i did. i missed it. >> it was classically terrible. what's the matter? classically terrible. put up a terrible print. t-mobile put up a good print. >> the affordable connectivity program seemed to have hurt them on the prepaid. that's the best people can determine. ultimately they came in okay on post paid ned ads, subscriber

additions. that was significant. we'll talk about comcast after this break. but that also was a concern for comcast, although that stock is hanging in there this morning after earnings. that seems to have been where a lot of the concern was, jim. >> well, if you look at -- >> that program is no longer in affect. it was subsidizing people's wireless bills and broadband bills. >> everyone talks about how bad that will be. when we talk about comcast, that will come up. carl, the industrials have done a really good job. that's one of the themes of the quarter. the banks have done a good job. there's transport and communications which is just terrible. i'm sure david will talk about zaslav, talk about amazon versus barclay. >> absolutely. we'll talk about amazon, the nba versus warner brothers. >> netflix had a great quarter. i wasn't here to champion it. i think that was wrong. i bet we've hit the bottom in crowdstrike. >> we'll get to crowd, yet

another downgrade today out of hsbc after two cuts yesterday. >> worse late than never. >> there's comcast, warner bros. discovery as we keep an eye on the nba rights. we'll get to a bunch of other names including sherman williams, freeport, lockheed and spotify when we return. - so this is pickleball? - pickle! ah, these guys are intense. with e*trade from morgan stanley,

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let's get to warrers in brothers discovery, the nba, amazon and bigger issues tied up in this. for months we've been saying warner bros. discovery would match the amazon package agreed to between the nba and amazon, even before the finals. we've been waiting for some time. yesterday we got the official news that they had matched. or at least in their opinion they matched. what i've also been reporting

for weeks is that it seems likely -- again, we will see, but it seems likely that, in fact, the nba which i am told very much wants an amazon deal in part because its owners want an amazon deal, what would come along with that will say no, that's not really a match, that it's not a like-for-like match. there's a very real possibility you can see litigation between warner bros. discovery and the nba, basically around this idea of we had the right to match. we're talking about multiple pages of a contract here, not just sort of a paragraph. and you did not say it was, and we disagree and they'll go to court. kind of odd. don't forget tnt will be airing games through the next season. this 11-year deal in question that our parent company comcast

or nbc has signed up for, espn and amazon as well, it doesn't begin until next season. it brings up bigger issues. there may be a larger argument here that is made as well perhaps by warner bros. discovery in terms of not just the power of these platforms to control and buy these sports rights, but, you know, people who want to watch nba games will have to pay another ten bucks a month and they'll get sneaker ads in their feed constantly. is it that what you really want, particularly for people who are not, jim, necessarily in the best of health economically, for example, but want to watch nba games, you have to pay another ten bucks for prime service, things of that nature. we'll see where it ends up. it could ifrn collude not just litigation but a larger discussion about is every sports rights deal going to end up with amazon, apple, alphabet or even netflix at some point? >> do these companies own the

world? do the owners -- the owners, adam silver controlled by the owners. this is where we're going. the underprivileged argument -- there are a great number of people obviously that watch nba. the $10 a month, is that a tax? >> that is the way i think they may phrase it if this thing actually gets to a real debate. whether that's going to resonate is very much unclear, but i think that they will potentially go down that road of it being a tax, so to speak. the kids whoa watch will be getting a lot of ads. it's a retail platform. i want these sneakers. >> don't we want charles barkley? >> he's retiring anyway. he would? >> yes. wouldn't the owners want better ratings? or do they say we've got to be in bed with amazon because they've got the money. >> i think a lot of that is in play. by the way, the nfl, the most

important by far, they come up -- there's an 2029 in the nfl as well. >> i understand -- >> it's five years away. >> they're not really -- i came up and said they're highest bidder. don't trust they'll give it to cnbc. i don't think that was well liked in the fiefdom. i've got to tell you, i think zaslav has real arguments here, not the least of which is he paid to have the right to be involved. >> he ears exercising it. we will see. the likelihood is you'll see some sort of litigation. i want to pivot to comcast, our parent company which obviously was spending a good amount of time on their conference call talking about these nba rights. the games will be both on obviously nbc but also on peacock, the streaming service of nbc universal.

they were talking about a lot of positives associated with it. as for the quarter itself, you can see comcast shares hanging in there. kind of been all over the map a bit, down as much as three or so percent in the pre market as well. the quarter itself, the loss of 120,000 broadband customers, actually analysts anticipated more losses. the loss of 419,000 cable tv customers. that's video customers, actually had been a higher expectation of losses. theme park revenue is the one that has gotten people -- surprised people. that was weak. peacock subs were up. on the call as well there was this question that we just discussed with verizon, also, about the affordability connectivity program, what impact that's having in terms of broadband subs. my understanding is that, in fact, it was actually said it might kick in really more in the next quarter -- the current quarter as opposed to the second quarter of the year.

that sent the stock down. it has rebounded perhaps on some conversation on the call around the positive aspects of the nba deal and what that will mean. by the way, the wnba is included in abc's deal. wnba not included in the discovery match. what they matched on was only the nba portion of it. >> david, do you think it's possible it's just a better than -- situation. people thought comcast was going to have a bad quarter, versus what i was hoping, something like a long ball, something big that would make it so comcast isn't just caught in this morass with warner brothers and disney? >> when it comes to comcast, the focus is on the core business of selling people brad band, the key for your life in so many ways. average revenue continues to go up. they raise price. at some point you have to reverse it and start adding broadband subs. carl has brought this up as well in the past. when housing comes back and people start changing their

address, will that spark some upgrades? >> if i want that, i'll buy cher min williams. >> which is going to open up six. >> particularly after ppg didn't report a great quarter. ppg is industrial coat tinges. this is obviously residential. carl, i think there are these companies that deliver a number slightly better than expected, and they're rewarded. coca-cola, they don't usually guide up. they're rewarded. i think that this whole better than feared is pretty positive for the stock market. very few companies out right disappoint. >> on parks, mike cavanaugh, our boss, was on the call say that the covid pull forward was bigger than they appreciated, but also losing some mind share to international travel and cruises. maybe the disney quarter isn't as clear as we know. >> maybe, they don't have enough

ships. >> bob iger back in the spring in an investment conference talked about parks slowing. you know that. >> we talk about the hugh johnston normalization line. >> normalization. that was the word, thank you. that caught a lot of people. he was being honest, clearly. that has seemed to show itself in the numbers out of the parks which has been the bright spot out of comcast and nbc universal for some time. >> you want to be in industrial, you want to be in tech. those are doing incredibly well. everything else mixed. banks were good. >> transports not so good. >> no. hit or miss. industrials have almost all been good. very strange that health care, of the hca, united health, those are doing well. by the way, in a trump presidency i don't think they really would be under screwed any. >> we are going to get you set up for alphabet and tesla after the bell tonight. get count down to the opening bell and one more look at

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time for a msh mad dash." we've been covering the movers this morning. one we haven't gotten to yet, spotify. >> fantastic momentum, david. they put through a price increase, added audio books, audio books for apple music, 26 bucks, spotify $1$11.99. third quarter in a row of profitability. top of record free cash flow. it's a great business. that's what people are reacting to. >> extraordinary. >> you hit everything. i talked to somebody who owns the stock, crushed it on margins, audio books and podcastion doing great. then they raised price, but it did not hurt churn. that's the key here. you raise price but people don't leave you. >> this is not one where they've got to add commercials. they're just loved. it made me think they could have

put through an even bigger price increase. >> give them time. >> yes. give them time. i'm on the spotify audio book. actually i don't know anyone not on spotify. spotify audio books is a great deal. >> you enjoy that? >> very much so. >> i still like reading my books, especially when the author reads it -- >> you see william shire, rise and fall of the third reich? it's all his voice. >> he's been dead a long time. i read that a long time ago. i should reread it. >> typically the night of the long knives is really good. this is one of those where, hey, why didn't i think of that. why didn't i think of that? >> they've gotten it together, expanding margins. to your point offering things that are keeping people on the platform and saying we're getting as much as we want. >> we've got some good stuff, carl. it's right in front of us.

spotify, right there. >> there was an mau miss, but chalk that up to operational discipline. [ cheers and applause ] [ bell ringing ]. >> at the nasdaq, iris energy, owner and operator of bitcoin mining data centers. as we're going to look for these to start today. >> i remember when larry fink was here saying, look, people want it. i've heard my first -- the shove ron decision, the supreme court decision that took away a lot of the power of agencies. i heard that. because the sec is challenged here because chevron says the agencies don't have much power, obviously we knew that gary

gensler was not a big fan. it doesn't matter. it's been overridden. the fact that ether is selling off is just a testament to how much it had been bid up. not really anything significant. >> we do have alphabet, of course, tonight. the whiz news, talks have broken down, going to focus on the ipo. >> congress -- we don't even know what they're thinking now in washington other than the election. i would say this, go over the netflix letter. there's this moment where they praise youtube saying youtube is doing really well. i think that that's the story. i am very worried. my travel trust owns it. i worry that search is being cannibalized. i don't go on search as much as chatgpt. >> we talked abilout that.

the market was worried about it for a period of a few weeks and went away. youtube is a powerhouse, and the netflix press release they did note time spent which is what they said they compete against. youtube has bigger market share of time spent versus netflix. when you combine youtube tv, that's where a lot of these video subs are going that are getting lost by the likes of comcast and others as well. >> it just gets mentioned over and over. >> getting larger and larger -- it will be one of the biggest, if not the largest single provider. >> ruth will be very important on the call. ruth pooret has been a star on the last few calls. this is a good story. i understand what schumer might be doing. carl, when you talk about anyone in cable, in tv, sure they talk about amazon, but they're really

worried about alphabet because alphabet wants it. alphabet is really successful. they know what to do and they make -- they have people literally -- they have content for nothing. what a great thing. >> so you're going to lean into tonight's? >> yes. i chrome, the cookie/non-cookie, it might as well be mondelez, i don't care. disney is so bad. >> disney is down because of comcast. we're going to wait -- we don't have earnings, but the parks, the negative -- i want to get the exact numbers on comcast. it's obviously concerning people on disney. >> -- >> it's in free fall. >> normalization was the word being used some time ago for park attendance. maybe thought the hit had already taken place in the shares in terms of adjusting for that. i guess these numbers from nbcu

on our parks are also giving investors paused. >> it's getting starbucksed. >> meanwhile, guys, while we're on travel, american close to a four-year low. >> that's taking out the covid. >> d.o.t. probing the delta cancellations from friday. the ratio of the airline index to the s&p, i don't think it's been lower than it is right now. >> they just totally failed. southwest may not be as bad because they had windows 3.0. they had not upgraded -- they weren't hurt by the update. >> the content update. >> i thought america had a better quarter than people realize. >> reports on what's happened to kurtz's net worth after crowd has not been able to catch a break the last few sessions. >> i continue to believe that people will forget about this six months from now because kurtz is a beloved figure. he always looks hag ggard becau

he doesn't need sleep. i went to dinner with him. i said you're the one of the most boring executives. he said, i won lemans. he's working 24/7. got to get a new sport coat. >> is there liability that people should be concerned about and what will that look like. >> i don't know. this is a great company and they had 18% share. no one knew they were so big. i continue to believe that it's palo alto's time. but so far it's been sent to one which is insane. palo alto is barely up. [ cheers and applause ] >> it's not like when chipotle had its problem and no one came out against -- it's there but the grace of god because it is

not a hack. >> i want to come back to a couple of things we've covered briefly. one being gm. stocks down 4% on what i thought would have been a very strong quarter and would have been reviewed as such. that doesn't seem to be the case. i want tond stand why. tesla shares are up, musk talking about using robots as soon as next year and beginning to sell them. >> he can do anything he wants. he can just say, listen, stop making parts and people will say, wow, that's fantastic. >> and mary barra can't do anything that the stock market likes. >> sells at five times earnings. >> five years' worth of earnings. market cap of -- they have a decent amount of debt? i'm thinking of an lbo model. >> remember they went after it before they wanted to do something -- >> cut out all the loss making. it's probably a little out of most people's reach. you never know. >> i think it's wrong. i think this stock goes up over time -- >> it's the best oem stock of

the year. >> they have a huge buyback. i bet mary barra is sitting there saying, sell me some, sem me some. >> it is up 32.5% for the year. >> she'll say sell me some. she's really great. >> i guess it didn't deliver enough based on the performance of the stock so far. >> can't all be spotify. not everybody can be spotify. >> should point out, by the way -- actually starbucks you mentioned briefly. i want to get your take. you and i frankly kind of knew that there had been a position built by a large activist, namely expected to be elliott. that has now been reported. we don't know what the plan is or whether there will be a plan or whether they're going to get board seats as a settlement. >> they've been talking. david, here is what i understand it as. i think they think it's one of the great brands of all time. the problem is too much demand. they haven't been able to work how to do the throughput, lines

versus mobile pay. david, i think, frankly, if luxman doesn't have a good quarter, i don't think it's going to be good conversations unless he says we're going to be like skon tell lags brands, come in and held us. constellation brands handled it so well. marc benioff, please help me. >> what do the plans look like and does it include replacing the ceo? >> if he doesn't do a good job, absolutely. >> again, we'll see if elliott shows himself here or if there's a settlement. >> i've been sitting here knowing this is likely, not knowing size, intent, not knowing a number of things that i would like to have known. that said, the stock did go up -- >> to tell the stock here is just plain stupid because elliott knows that the brand is good. elliott knows that this team so

far has not demonstrated any prowess. so if they work with elliott, and i think everything goes smoothly. if they don't work with elliott, then elliott is going to find someone else. >> elsewhere in food, we got a downgrade of krispy kreme. actually an upgrade of krispy kreme, downgrade of darden. >> do weigh have domino's. >> russell wiener said point-blank, we screwed up, but it was this one franchisee. let's listen to russell. oh, even better, even better we don't have it. i can speak for russell in a nanosecond. one of the things that russell was saying was we are used to upside surprises. and we didn't deliver one. you can kind of bet that that won't happen again. he was saying, listen, we did

not do a good job communicating. we have to execute better. i think the master franchisee who has 3,000 didn't do a good job. you won't mary from them again. this, by the way, is the man. this is something i didn't know, who came out with the campaign when the stock was a ten who came out and said our pizza tastes like cardboard. i want to go with the man who had the single best ad campaign i've seen in the last two decades. so you want to buy domino's pizza right here, right now. >> coming back to earnings movers this morning. gm we mentioned down 4%. comcast shares now, our apparent company, down about 5%. watching it closely as we often do, of course, the stock seemed to be flat to up. when it finally opened, it has gone down. down now 5%. concern -- perhaps the significance slowing revenues down 11% year-over-year with parks. parks were incredibly strong and

had been a real growth engine for the company. we talked about broadband subs coming in actually ahead of expectations even though they did lose broadband subs ahead of analyst expect stations. although the losses continue. it may have been free cash flow. this is pressuring disney shares as jim pointed out, down some 3.3% with no news simply on fears about the parks at disney, if there's followthrough from what we saw at nbc universal. as for other movers, you want good news? ge is up 2.25%. the that stock up 63% this year. >> did you see the cash flow there? one of the things -- people forget how great larry culp was. when i look at ge, they are -- think about what they can do when people are actually making engines. this is all spare parts, it is

all service. this thing is a coiled spring for when boeing gets its act -- if boeing gets its act together. i don't want to give boeing even an inch of benefit of the doubt. >> with boeing, we're still waiting on the announcement of a new ceo which should come -- what i'm hearing is they haven't quite figured it out yet. >> i'm hearing no one wants the job. >> it's a tough job to take. >> i'm not kidding. i'm hearing no one wants it excerpt for internally. >> culp is not taking it. greg hayes isn't taking it. >> greg hayes should take it. look at greg hayes. he had that problem with engines and they brought millions of shares and then they fix it, as he said he would. he's good to go that guy. boeing -- >> who is darius adam check. he's at goldman doing something for them. he was in and out of that place fast, honeywell. >> shorter than dave.

>> yes, a little bit. a lot. >> i know larry culp was saying this morning that renewable fume fuels are important in europe. david, kapur is crushing it already. >> at honeywell. >> at honeywell. rearranging the portfolio in a fantastic fashion. i like what he's doing. that's a very strong story. they report later this week. very, very strong story. >> reporting tonight is texan. i wonder after what nxp said about autos, if you're thinking about that kind of thing -- >> that's a concern. against that we have elliott with a stake in texas instruments. i think texas instruments stock is way up versus where it was at 193, 194 when elliott got involved. a little bummed out about kimberly clark here. stock is down big. they did talk about softer sales. >> organic was a miss, up 4.

looking for 5. although they did raise elements of the guide. it wasn't all bad. >> i've got to do more work on that. there's issues with some of these soft good stocks. i don't want to pronounce this one dead it's been terrific. >> how about the divergence today between pulte and sherwin williams, going in different directions. >> sherwin williams, they have done a very good job separating themselves from the pack. i think pulte was set up, frankly, by how good horton was. everyone just fawned all over horton. looks like horton is a little more suey generous as they say. just go on horton. they have a great quarter. there was a downgrade of lennar yet which i thought was fat tu ous. toll brothers up. >> goldman did cut to neutral. >> you don't go against stuart miller, son of leonard miller,

lennar. i do think that was a straight up power move. doug yearley is remarkable at toll. i think anyone who knows him is, extraordinary gentleman. >> you see who is here at post nine? contessa brewer. >> hello, gentlemen. >> the earnings are coming down the pike here, but we have breaking news right now from the federal trade commission which is launching an investigation into surveillance pricing. in other words, the ability to charge different customers different prices. the agency wants more information about how ai is used to change pricing rapidly based on data about customers' behavior and other characteristics. so the ftc is now demanding the information from eight companies, all of which advertise their ai and other tech tools with a trove of customer information to target prices to individual customers. so those companies, master card and chase, you've got pros which

just just named microsoft's internet service vendor of the year. consulting giants mckenzie and accenture. rev onics which counts home depot, tractor supply and grocery chain hanford, among others. bloom reach which services fresh direct, total wine, puma. these are all retail names that our viewers and their families would recognize. ftc chair lina kahn said firms that harvest americans' personal data can put people's privacy at risk. now firms could be e mroiting this vast trove of personal information to charge people higher prices. she describes it as a, quote, shadowy ecosystem of pricing middlemen. the ftc is demanding information about the types of products and services, how they collect consumer data, who are their customers and how the clients then use this product or service, what impact that has on

consumer pricing. the agencies undertaking the action under a 6b authority which authorizes it to collect information without specific law enforcement action. i want to note here, it's important to note, none of these eight targeted companies nor their clients are accused of wrongdoing. the ftc says, look, the technology is advancing so quickly, we need to know how it works. after the pandemic when we saw the dynamic pricing, you would go into a restaurant with a qr code. what you paid for dinner might change depending on whether you were there on a thursday or a saturday. now they're saying that, imagine you're going to the fancy restaurants all the time, you're a business traveler, they know it based on your phone number. imagine that what a restaurant charges you, jim cramer, is more expend sin than what they charge me. we would never know. same steak, same meal, different prices. >> as someone who owned a couple

of restaurants, that would be pretty outrageous. i just would never do that. that would be terrible. that houb roshl. how do you live with yourself. >> like counting your money. >> hey, i'm sorry. you look like someone who is rich. i'm going to bang you. >> what's more, they're saying they especially want to know if there's targeted populations. in other words, are rural customers more vulnerable to the surveillance pricing? are women more vulnerable to the surveillance pricing? you can see how -- master card, though it's important -- interesting to note master card, not visa. >> we've got to get michael on. that's a great report. i agree with him. >> you and the ftc. >> i don't get it. how could i agree with -- good

report. glad to have you on the show. you do a fantastic job. >> contessa, thanks. as we go to break, watching bonds today. existing home data in about 12 minutes. a two-year note option at 1:00. ten-year at 4.23. don't go away. the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. the all new godaddy airo. put your business online in minutes with the power of ai. i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform.

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(aaron) so whatever's next... we're cooking with fire. (vo) switch to the partner businesses rely on. talk a look at oil today. first, a one-month low settle yesterday adding to losses yesterday. occi. >> this has become more difficult to own. under trump it was hard to own because people drilled and drilled and drilled to lower the price. something really worth watching. >> yeah. we'll watch that, of course, as we keep our eye on opec in the next few ds.ay for now the s&p up almost six

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trading. >> henry fernandez runs a company called msci and they're the ones who decide who is in the index and who isn't and this

turned out to be a pretty darn good business. one thing i would tell you is there's a considerable short base in the company. people feel they're really not cricket or something. i investigated it myself. i did not see that. what i did see was one of the great business models and this is the more asset-like business there is, taking a company and put china in, take china out. put european bonds in, put european bonds out. congratulations to fernandez, up 10%. a really remarkable quarter and this is again, a company you really want to own because they don't have any exposure to anything. they're the ultimate fintech story. >> for a while there was a string of all-time highs. >> i know. then it got hit by the short and i would like to see if the short guy comes back. to me, i'd like to see the invitation to his funeral, obviously. >> how about tonight, jim? >> i have mattel.

a lot of people want to know did they get approached or did not get approached? everyone has to watch this because if you believe they got a takeover biz we'll get it from ynonand then hanneke. >> it is no relation whatsoever to david faber. >> none. >> none. hanneke. >> i know. >> see you tonight, jim. "mad money," 6:00 p.m. eastern time. don't go anywhere. work with principal so we can help you with a plan that's right for him. let our expertise round out yours.

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♪ good tuesday morning. welcome to another hour of "squawk on the street." i'm sarah eisen with carl quintanilla and david faber live from the new york stock exchange. stocks are higher again, 0.2, so putting back-to-back gains

together. if this holds up 1.3% for the week so far. it's only tuesday. consumer discretionary leading the charge and amazon is a part of the story up 3%, but you have strength in the cruise lines like carnival and norwegian and the restaurants like domino's and chipotle, as well. financial, health care, technology services and staples is lagging. energy, utilities and materials and it's why the nasdaq is high are. it's been higher by about a third of 1% right now because one of the big cap tech is rallying and crowd strike is finally having a positive day up 2%. i mentioned amazon, arm, broadcom, some of the winners in today's session. take a look at treasurys right now. it's a lighter data week until we get to thursday and friday and pce, but we do have some reports to get to in just a moment and the ten-year yield, 4.2%. we are 30 minutes into the trading session and here are three big movers we are watching. ups shares are dropping and

profits dropping bu to high labor costs and weaker than expected demand. that said the company did see volume growth for the first time in nine quarters, but the stock is taking a pretty big hit. we'll talk about it later. watch danaher after the health care company beat estimates with core revenues down low to single dijity ands shares of gm giving up early gains and the automaker comfortably beating estimates and raising the outlook and it will restructure its money-losing china and autonomous driving businesses and we'll talk more about gm, tesla and autos on the show, but quite a reversal now down 6.5% almost. we do have econ data crossing the tape and to that we'll go to rick santelli. good morning, rick. >> earlier we had affiliate at 19.1 weakest month over month since december 2020 and the manufacturing index comes in for july at minus 17.

that's the weakest going back four years plus to may of 2020 and if we look at the service side of the equation it comes in at minus nine. that follows minus 11 which was now changed to and revised to minus eight which means we haven't had a positive number on the service side of richmond fed going all of the way back to august of last year. now if we look at interest rates, this is one of the reasons they remained a bit under earn from ypressure, but the weak data it's surprising they haven't pushed yields down farther. we also have existing home sales out and for that we go to diana olick. >> rick, existing home sales in june dropped 5.4% in may to a rate of 3.89 million units and that's lower than the street expected and sales down 5.4% in june of last year all according to realtors and these are closed sales and based on contracts

when the 30-year fixed jumped above 7% and stayed there. rates have pulled back slightly since then to the high 6% range now. inventory bumped higher up over 23% from a year ago and still just a 4.1 month supply and that's because it's coming off record lows and 6% is between buyer and seller and a lot of that is homes sitting on the market longer and increasing supply and the average day is 22 up from 18 days on the market a year ago and even that new supply not helping these prices. $426,900 was the median price of a home sold in june and the second straight month at an all-time high. remember, part of of that is skewed toward what is actually selling the median and the higher end is what's selling and the million dollar-plus range is seeing stronger sales. 28% of sales were all cash and that's up from 26% a year ago. sarah, good to be on the high

end. >> i guess. is there any indication that the lack of activity is going to bring prices down at all? >> you know, we asked that of the chief economist and we were just on the call with him and he said maybe he hopes so, but he's not particularly convinced. that is the lockbox indicator where they measure those boxes on homes that are for sale and they're seeing demand coming up a bit and that's just people walking through the homes. what's interesting is we're seeing the most supply now coming in on the very lower end and that's not helping sales which is a little odd. >> okay, diana. funky things going on in the housing market. di diana olick on it as always. we're going into a fed meeting next week and one of the reasons inflation has remained stickier than expected at this time of the cycle has been shelter price inflation, right, which is a third of cpi and 45%,

of course, cpi. david rosenberg took this up and this is rent. diana was talking about home sales and this is rent prices and david rosenberg looked at all of the market prices in the latest releases for rental prices and as you can see they're not nearly as high as the cpi shelter which is at the bottom of the list and part of of this has to do with just the way that these are measured and the market rental prices, they ask for the new rental prices that tenants are going to pay. cpi shelter includes the new rental prices and the existing rental prices that tenants pay. so his bottom line is that there's a significant lag for the shelter index to catch up with the market prices on rent, but that it is coming and we've been saying this for a while as rental prices have trended down, but his point is it's coming and it will take the overall inflation rate even lower and the fed should have more

confidence when it comes to making a move or signaling a move as we expect for a september cut. that's been baked in the kate and now the question is will we have a november cut? will we have a december cut? is it going to be quarterly? monthly, and i don't think the fed has any idea and neither does the market at this point and a lot of it will rest on how the inflation number can get to 2% and how much the economy deteriorates from here and both are sort of question marks at this point. >> as you would expect they would be. >> yes. it's a question mark. >> where is it in terms of how many? >> two cuts this year. we're a little over 50% that we might get it in november or december, but the september cut is more than 95% so that's considered a fact. listen to powell and how he talks about it. if it's like lagarde which she said we're not on a

re-determined rate path and be data dependent which is exactly what we expect from powell given how he's framed all this before. we are also getting commentary from corporates. it's earnings season and love to pull out the macro takeaways and interestingly, we'll stick with housing because pulte ceo had this to say about how it would spur activity in the housing market. >> to the degree that the fed actually cuts interest rates in the coming months i think that will provide a powerful tailwind financially and psychologically as we enter 2025. >> they're getting excited in the housing market for those rate cuts and sherwin-williams, the painter on a related note, the macro economic environment has been softer than many economists anticipated at the start of the year and it is unclear how this trajectory may unfold in the back half. what's fun set macro economic environment has been much stronger than economists had expected and if you're

sherwin-williams and you're in the housing market and you're sensitive to what people are doing when it comes to homes and renovating homes then has been weak for longer than expected. i pulled out this quote from genuine autoparts on the consumer. the ceo says our quarterly results reflects softer, and particularly in our industrial and the u.s. and european automotive businesses, but when it comes to the consumer, the gm, cfo actually sounded relatively upbeat. >> we've been saying for a long time that our consumers held up really well and it's been resilient and we expect that to continue to be the same way. i think a big part of that is the strategy that we've undertaken about being disciplined in inventory and the data flow about producing the vehicles that we know that customers are demanding and when you combine that with the incredibly strong portfolio we have, i think this is the

result. >> the bottom line, guys is that there's more talk of a softening consumer and a tougher macro environment, but it still falls in the okay basket where it's not recessionary. it's not collapsing and not highly uncertain and not extremely challenging. those are more of what you hear of when we are really deteriorating which complicates the picture for the fed. >> a good piece for auto incentive incentives and we've been watching auto inventories and we expect price cuts in the car business of 2%. what was interesting is polaris in the boat business when marine revenue was down some 40% as a lot of those super discretionary purchases do get curtailed. >> look, a lot of the pent-up covid demand we see for going out and that did well against covid 2, there is a giveback and now it's the story of price

sensitivity, i would say than high pricing and high demand for items like that. >> meantime, my next guest says buy old school capex based on the ailing infrastructure in this country, at least and the b of a securities and head of u.s. equity savita subramanian. good to see you. >> great to see you, as well. thanks for having me. >> i was just looking back. it's been a little over a month since you had conviction in the s&p and your enthusiasm had waned with bearish sentiment. has anything changed? >> well, i think -- i had to call a market direction from here. it's higher. i think in the near-term there are a lot of reasons to pare back exposure, especially to big-cap tech and think about where you want to really pick

your spots and that's why my conviction in the index level itself is not as high. we are not as bullish as we were in the beginning of the year because other bears have capitulated and we've also seen the market move significantly higher led by again, a narrow culprit. from here it broadens out, but what worries me is if big-cap tech doesn't hold up from here we will not see as strong of gains in the overall benchmark. we are also heading into a tricky part of the year. so not only are trends seas seasonally weaker as you move into the summer and you have this election in november and what we saw is the vix generally jumped about 25% from end of june to november of election years and this election is even more uncertain than prior elections have felt. >> interesting. when it comes to the ai names

and we will get alphabet, tonight, for example. there's been chatter for estimates among ai capex among hyperscalers than estimates for sales and are you suggesting that the street might run out of patience for these investments to pay off? >> exactly. that's exactly right. so the idea here is show me the money. show me the fruition and the monetization of ai and where we are now is an environment where folks are spending and the hyperscalers are spending so they're cutting into their re-tax flow generation whereas last year they were in bunker mode. they weren't spending on capex and then you have this huge surprise of, you know, ai, generative ai and strength in the cohort. this year the surprises are, we think, based into the companies and they're spending more of their free cash flow so it's a less compelling story from here. still strong and we still admit that growth is in tech and that's not going away, but

expectations have really risen to where these companies are today. so our view is that there's probably more upside elsewhere in the market which is why we like old cool capex and we don't think that's getting a lot of attention. the growth isn't necessarily priced in in those cohorts, but i do see a strong infrastructure spending cycle coming up that's almost mandatory rather than nice to do. so that's where we really see the strength in the market. >> what is the old school capex. >> old school capex. >> who benefits from that? >> what am i talking about? so old school capex is basically industrials, materials and even energy, oil and it's the idea that in order to power up all these chips and also to support all of the extra activity that has been moved from overseas back to north america, we need better roads, highways, dams, et

cetera and what we are seeing in the engineering data is that the u.s. isn't doing great on infrastructure. we spent the last 10+ years investing in the u.s. and now we have double the activity on u.s. soil. so it's all coming to a head. it's not only the tips, but it is also the shoring and on top of what we haven't really spent on a good, old-fashioned refurbishment cycle over a decade. so i think that's where we're going to see stronger gains and more money spent, and when you look at industrials and traditional capex plays they are not necessarily pricing in as much big news as ai and tips and mega-cap tech. >> savita, you are always a must read. always good to follow up with a conversation, too. thanks so much.

savita subramanian over at b of a. >> good to see you. >> regarding the big earnings name we are watching is coca-cola. the company beating second-quarter earnings and also feeling confident enough to raise the full-year outlet for organic revenues and profits and for the year coke expects 9% to 10% and previously it was forecasting 8% to 9% and the company raised its outlook for earnings growth to range from 5% to 6% and that would be much higher if not for the currency impact they have, as well. i did speak with the coke ceo james quincy, and he told me that they saw strong top line and good momentum in both volume and price which are both drivers of growth here and he said they were broad based in the mix of categories and the mix of geographies. i honed in on the pricing story because they are seeing significant pricing growth and i asked where is inflation right now and he said it's landing and pricing overall.

last year if you take out some of the crazy inflation countries in argentina was 6% and now it's heading 2% to 3% which he calls a more normalized rate of inflation. as for how the consumer is doing in the u.s., we talked about lower income consumers. he said they've been under pressure and you see that in the tradedowns in the grocery store and also in lower traffic away from home so going out to events and there's nothing new there. that's been the story for the last few quarters. china, he said momentum is tepid in the macro sense coming out of the real estate crisis there. latin america, he said, is strong especially brazil and mexico. he said they saw a bounceback on volume growth in india and had weakness in q1 and also a good quarter in southeast asia and as far as the geographies and i asked which markets he's most bullish on is india and no question about it and they have good local brands there and not just coke and diet coke, and on

away from home where coke gets half of the business and the stadiums and the movie theaters and the conner ises. post covid has been done. the prevailing trend is affordability and that is a feature of away from home. in other words, finding deals on food and how people spend their money, but you know, it was a better-than-expected quarter especially in light of what pepsi reported recently which was more of a strain on spending, and i think the explanation there is they're in different categories. pepsi saw that in food and pepsi is not alone in that and also the geographic mix is different when it comes to pepsi. coke has a stronger foothold in some of these growthier markets like latin america, southeast asia, but overall, just another solid one when it comes to coca-cola. they have new innovations and they're spending a lot on marketing and the olympics will be good for them and powerade and body armour are doing

better. >> fair life, the milk. >> from jim which he's unfamiliar with. >> very expensive milk. >> is it? >> yes. but it's done really well. this has been a few years in the making. >> i see. >> they've invested a lot, but it's part of the reason why they got such strong pricing growth in north america because it's not in their distribution system. it was 4%, not 11%, but fair life so strong. >> why not go with rich life, good life, delicious life. >> this is not a new brand, david. it's doing well. >> i don't like the name. who wants to have a fair life. >> i think a lot of people want a fair life. >> i want there to be fairness. of course, life is unfair, as we well know. >> we tell our children that when they complain and one kid gets the other. >> premium chocolate milk.

>> here's the roadmap for the next of the hour. ether etf of black rock about the road ahead. >> plus the ups breakdown. these shares are down double digits after a profit drop and a cut in guidance. >> and what investors need to owbo tig awe gettal fabb alphabet and tesla after the bell. don't go anywhere. welcome b

the street." the sec has approved the launch of the ether etfs beginning to trade this morning and our bob pis annie is here with an etf. samar cohen is here with chief investment author of etf. you have a lot of skin in this game here. first up, they're all launched. they're all up and going and are they tracking ether and do you have a sense this this could be the big hit that bitcoin etfs were serve months ago? >> it is a very important day for investors, as you said, bob. they have been trading in the pre-open. they are tracking ether and trading with tight premium discounts and they are trading with tight spreads and importantly, they have broad market maker support. this is what we've been looking for a successful integration of cryptocurrencies into the ecosystem where they have more than 20 market makers where they

are actively making markets and engaging with etfs. >> there have been 17 million in total inflows when they started with bitcoin, any sense of what the size of what this could attract. bitcoin is 1.3 trillion in assets under management and it's a third the size. i'm trying to get a sense of what kind of inflows you're expecting. >> everyone is trying to get a sense. this is early days and we are six months into the trading of bitcoin etfs and 15 years into transactions into the bitcoin block chain. nine years into transactions on the block chain and bob, these are totally different use cases and while bitcoin is known for its scarcity and 29 million finite supply and ether is a totally different use case and ether is known for the utility and a programmable block chain designed to let developers build

decentralized in the ecosystem so for people like us who are interested in what the next phase of markets will look like and is there the possibility to deploy new technology to create innovative use cases in applications and this is an important space to watch in ethereum. >> so i heard ethereum enthusiasts say that this is different from bitcoin. ethereum uses small contrasts and decentralized finance and uses block chain in a completely different way. are people going to understand that? is this going to attract people who are interested in learning about this new technology that's different than bitcoin? >> bitcoin may be easier for people to understand in a very high level pitch. bitcoin has gotten a lot of attention by people calling it digital gold and it may take more time for people to understand the ethereum and that makes sense given the breadth of potential cases and i think they

are compliments to each other and it will be interesting to see how both play out in the portfolio. >> do you think the election is driving activity and enthusiasm for bitcoin and other cryptocurrencies? former president trump says he's a bitcoin president and he's speaking at a bitcoin conference this weekend. does that move the needle? >> i think what's moved this needle over the last week and couple of weeks is there's increasingly bipartisan support probably based in the interest in adoption that we're seeing from investors in digital assets legislation and how do you create competitive and resilient u.s. marks that allow investors to participate in cryptocurrencies through etfs. >> we have to go, but very quickly, will this open the flood guys for other crypto etfs. we now have two of them. is there going to be more? >> a bitcoin in ether are the ones that meet the bar to provide the market quality and the wrapper for investor and you'll have to have them back at

a later date, bob. thank you very much. >> samarra cohen o. >> thanks, bob. more on shares of ups which are plunging right now. don't go anywhere. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

ups is the biggest loser on the s&p this morning after fresh numbers there. frank holland has been tracking the action and frank, it's especially stark compared to what fedex reported and how their shares have been performing. >> you see the sell-off right now and you can see ups lower after missing on earnings and lowering the full-ier revenue guidance and the share on pace since april of next year and she voiced concerns about a global slowdown then. executives on this call, however, said they expect volumes to improve in the second half of the year and they also expect a strong peak with surcharges for large retailers. this quarter again, ups saw its first volume growth since the pandemic and it was relatively minor and it was volume growth

and that was nine quarters ago. however, customers prioritizing cost over speed of shipping, that weighed on pricing. >> during the quarter we experienced a shift toward value products. the shippers using ground over air and surepost over ground, and there was also a notable shift in product characteristics with a surge in lightweight short-term volume moving into our network. >> this stock was 8% lower in the pre-market and it fell another 2% on those comments. the acquisition of a mexican express will help ups capitalize and it was capitalizing on the stock buyback plan. 500 million in buybacks to buy 1 billion in stock next year and back over to you. >> so is she blaming macro because it is interesting when fedex is doing so much better. >> you know, it's interesting.

i was talking to a bunch of people on the call. they mentioned they have two new customers. they said the customers were focused on value and new customers in the e-commerce space. i called a lot of people and nobody knows for sure, but it sounds like a shein or a teemu. maybe they're taking that at a lower price than they should be and the macros certainly saw and i think they talked about that on the call. overall as the company tries to shift to the better motor plan there seems to be some disruption there. >> frank, thanks. pretty interesting what's going on with some of these transports. frank holland on ups today. still to come, what gm's earnings might portend for tesla tonight st aewju f hours after the bell. we'll get you ready for those in just a moment. 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 the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future. a future where you grew a dream into a reality.

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because doors were meant to be opened. ♪ ♪ welcome back. i'm sylvana henao with your

concerns nbc news update. nbc news learned this morning the director of the secret service has resigned. an official announcement is expected soon and it follows monday's fiery house hearing where kimberly cheatle faced tense questioning over the secret service security failures that led up to the attempted assassination of former president donald trump earlier this month. meanwhile, house majority and minority leaders mike johnson and hakeem jeffries announced plans for a new task force to investigate the rally shooting. the lawmakers said today it will include seven republicans and six democrats. the house is expected to greenlight the task force and its members in a vote later this week and two-time gold medalist andy murray confirmed on social media today he will end his career after competing at the paris olympic games. the 37-year-old brit wo won the olympic men's single championship in both 2012 and 2016 had hip surgery in 2019 and

has dealt with several injuries since, david. send it back to you. >> okay. thank you, sylvana. let's take a look at shares of gm. they are down rather sharply, actually, rid now despite what was a comfortable beat in terms of earnings estimates and, in fact, they raised the outlook today. gm raised 22,000, and that was up 40% from a year ago. it did outpace the industry-wide growth rate and mary barra talked about the industry growth. >> we can win more customers as they embrace evs. we're seeing that right now with 54% of the ev sales being customers that are new to gm and so we do think the market for evs will continue to grow and we've got the performance and the technology and the range that customers want. >> gm also says it is revamping its money-losing uniity in china. let's talk about the state of

the auto business. we'll talk to a cnbc contributor and a member of the board of directors, as well. to start on gm, too to be fair, was down sharply on what seemed to be strong numbers and i'm curious to get your take. >> david, as you said, they had a very strong quarter. they said they hit records for profitability for north america and global revenue. it was a strong quarter and their margins in north america were actually very, very strong and almost 11%. i think overall what investors are looking at with gm is first off, they continue to pull back on their ev plans, but at the same time they put in a lot of capacity so that means that capacity is going to take longer to get used up when you have capacity sitting there and not used. that's a drag on your earnings and then secondly, this news around they have to restructure

china and that's a big operation for them and then finally, they've abandoned their origin on autonomous vehicle when they took a $5, $6 million hit on that and that puts into question what mary barra was talking about about the robotaxi revenue they can get in the future. so i think a lot of things in there, but overall it was a good quarter and the pricing held up and the market is still relatively robust. >> yeah. i'm sure you face this frustration to a certain extent at ford, as well. this trades at five times earnings. i guess you will never get investors to pay up in terms of multiples for these kinds of companies. >> that's always a frustration, right? because if you look at the automakers whether it's ford, gm, or et cetera. they're doing a lot of work on evs and generating new revenues through their vehicles being connected, but at the same time

investors always go back to the fact that these are highly capital intensive businesses and they never get the credit for that, and so they'll have to keep working through it or, you know, at some point they're going to have to deliver on their promises with businesses and revenue streams through information from the vehicle that consumers are going to take advantage of, but you know, investors go back to the fact that they're a manufacturing company. >> yeah. not many ways to solve that. >> you know, evs used to be a bit of a political football, but this time it's different with elon musk supporting former president donald trump. i wonder if you think there is a big difference on either saturday as for the upshot, economically and financially for the auto economy and evs in particular. >> well, sarah, as you said, i never thought my career i would

see automobiles become political, but clearly depending upon which administration comes into play here there will be some puts and takes for the auto industry, and you know, i kind of describe when you look at the candidates or the parties, you look at their policies and it's a bit like a box of chocolate. you bite into some you really like and bite into others you don't and clearly, there are ramifications against ev incentives and overall, the industry over time is going to transition into the propulsion system because of the oils and the non-renewable resource and not at the rate that everyone -- and the pressures rid now that tesla is facing because again going from early adopterses to mass adoption is hard and, we saw in the growth of this year, the growth of pure evs was 80

aers and last year it was about 50% and also the premium from an, v to an ice vehicle and an, question of lenit was almost $9,000. >> if it's not price figuring into the decision to stick with a nice vehicle, what is it? >> i think it's two things. it all comes back to the consumer and there's not enough talk around the consumer and the first is the availability for the charging infrastructure because not everyone has a house with a two-car garage where you can charge overnight and then secondly, it's the convenience factor, right? so even when you build out the charging infrastructure, you're asking consumers to have more inconvenience, right? because they have to go to a charging station, they may have to wait depending upon if there are vehicles in front of them and it will take 30, 40 minutes

to charge the vehicle. that's more inconvenience for the consumer and at the end of the day i believe consumers always go the path of least resistance. so once the industry solves those two issues and they will eventually, then i think consumers will come in a big way. >> with quicker charging and/or the batteries that go furth per, i guess those are the two things? >> also there's new technology coming down the pipe like solid, state batteries which will charge much faster for the industry and much safer to produce and that's the big technological for what i call about battery 2.0. >> mark, thank you. >> you bet. >> coming up after the break, the ceo of new balance with his read on the consumer and the new deal with the wnba. also a quick programming note, friday does mark the opening ceremony of the olympics and cnbc will be there live bringing you coverage of the games, interviews with athletes and of course, major corporate

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welcome back to "squawk on the street." new balance is now an official partner in the wnba in a bid to elevate women's sports. new balance ceo joe preston. it's a ceo exclusive. you never do television so thank you very much for the opportunity. >> thank you, sara. it's nice to be here. >> i wanted to ask about the wnba deal. how does it work? because it's not like you're the exclusive partner. a lot of the big companies like nike and under armour are in it, as well. so what do you gain from that? >> it's similar to deals that we have struck with mlb and nba. it's licensing.

it's activation and an opportunity to bring stories to life for athletes that participate in there, and our journey began as a pushback into basketball in 2019 and then we signeded a similar type deal with the nba just a couple of years ago and then in 2023 we signed cameron to an nil deal and she was the number two pick in the wnba draft this year and we've been using her in our creative and our basketball spots as well as our brand spots for over eight months now and we're really excited about what she can bring to our brand. >> a lot of people think of new balance maybe running, fashion. what is your position in basketball. i know you have kawhi leonard. how important is that in a growth market? >> outside of soccer, it is the world's second largest sport. it's important here in the u.s. it's important in parts of europe and certainly in parts of asia, and so we think in a

category standpoint and from a performance standpoint it's important. it is also important from a cultural standpoint and from a fashion standpoint. so that's the reason why we re-entereded it, but running is at our roots and no question about that and that's where we were formed, but we have developed into more of a sport brand. today in baseball about 25% of major league baseball players wear new balance as an example, and we think that's allowing us to get younger and to a pppeal a broader audience. >> what does it look like overall? it's a private company so we don't have any data, but if feels like you're making real inroads. >> from '21 to '23 we essentially doubled our business fromment tw 2020 to 2024. and we have the highest market share gains of anybody in the industry. we feel confident coming into back to school and into the back half of 2024.

>> what -- what is driving that? is it the fact that kind of like the wider dad shoes are more popular, some of those retro styles? what is it? >> it's definitely product and the product teams that have been reimagining some of it's the brand activations we have going on across the world and these gains have been playing place everywhere around the globe. it's also about being able to create a strong consumer experience all the way from where they are interacting with your product, whether they're buying it, in our stores or one of our partner stores. so, that operational excellence is a really important part of it. >> it's david faber. when she's talking about dad shoes, i know she's attacking about me. >> those are grandpa shoes. i'm just kidding. >> yeah, right. joe, the olympics are coming up. we're happy to point that out at an nbc company.

how important is that in terms of a marketing company for athletes wearing your shoes? >> it is important. we have over 85 athletes that will be participating in the olympics this year. by the way, over 55 of them -- 55 of them, i should say, are women. we have some of the biggest names in sport from coco gauff and sidney mclaughlin in traffic, so we are expecting some exciting things, hopefully world records and gold medals. it's an important year for us. we've been preparing for years. trying to put our athletes in the best position to win and to activate the brand within paris and other key areas around the globe. >> since you mentioned that, i think of new balance as a more domestic brand. so, what kind of international business do you see right now? what's the growth like there? >> well, our business commercially, about 34%, 35% of it is here in north america. the rest is outside of the u.s.

we are developed and we do business in 115 countries. we have over 600 stores that we own. we also license another 2,000 stores. the brand is truly a global company. we are also the only brand that has domestic manufacturing. we have factories here in massachusetts and in maine. we have a new factory being built in new hampshire. we just completed a new manufacturing innovation center about a mile from our headquarters. >> in terms of size, sew it's nike, adidas, skechers, are be number four on revenue? >> it depends on how you account for it but we ended 2023 at $6.5 billion and we feel strong about our growth. it's in around the ranges you're saying, yes. >> joe, appreciate the update. thank you very much for coming on. >> thank you, sara. thank you, david. >> new balance ceo. coming up on "money movers" this morning, long-time tech

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before we close out the hour, dom chu is here. >> we are watching some earnings movers. as for the ones that are moving, take a look so far. one of these particular moves. check out what's happening with spotify technologies. moving higher solidly to the upside after they come out with a better than expected earnings report. even though some premium subscriber numbers may disappointed sop investors, we'll start there and see spotify up 11% right now. let's move on to some other big movers of the day so far. check out what's happening with lockheed martin up on an earnings beat. 2.75%. you can see one of the biggest defense contractors in america. those shares are climbing to a 52-week high. the company blew past earnings and revenues, posting q2 earned of $2.65 a share. wall street was looking for earnings. philip morris and other stock jumping to a new 52-week high so

far. the cigarette maker will beat wall street, and boosted full-year guidance. people are turning away from traditional cigarette makers within the company's smoke-free business. gross profits climbed by 22%. there's a quick recap of a few of them. >> glad you hit lockheed. that's going to do it for us for this hour. r veart vegeouli mkecora continues right after this.

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good tuesday morning. welcome to "money movers." i'm sara eisen along with carl quintanilla live from post 9 pfr holly newman kroft is with us. her take on earnings season, the impact of of the election and one area she says is arguably the biggest driver of the market right now. new vc group jim breyer will join us, where the next opportunities are in a.i. and the stocks he thinks should be added to mag 7. alphabet's company big to buy wiz falls apart. first