good morning. welcome back to "squawk box" here on cnbc. i'm andrew ross sorkin reporting live from the olympic games in paris. melissa lee is at the nasdaq in times square. joe and becky are traveling back home today. melissa, it is nice to siee you. there is so much to talk about in the world of business. i want to talk about the meta earnings in a moment. we want to talk about how busy the past 24 hours have been here in paris. katie ledecky winning gold. i was there in person. it was unbelievable to watch. electric. the 1500-meter freestyle. she was ahead from the very beginning and lapping folks. she is now tied for most overall medals and most gold medals of

any u.s. woman in history. france's leon marchand winning gold in the 200-meter butterfly and 200-meter breaststroke. he is now 3 for 3 in his competitions. melissa, being in that arena, given he is from here, the outpouring of love for him is unbelievable. the magic in the room is something to behold. then, u.s. men's basketball advancing to the quarterfinals after defeating south sudan and given that exhibition match, melissa, i don't know if you saw, where south sudan almost eeked out a win. u.s. only won by one point. everybody was watching this last night. of course, usa, team usa winning, and this time making it look easier than last time. big events to watch today. the first round of men's golf and women's gymnastics individual all-round happening

here. fencing finals with women's team foil. swimming medal races on the docket. women's basketball taking on belgium as well. we have a huge lineupparis, inc stewart teaming up with snoop dogg. she will join us in just a little bit. she's got some cool shoes on. she will be an olympic commentator with snoop here in paris the next couple days. melissa, a lot of fun going on and business. >> you mentioned an exciting 24 hours in paris. very exciting 24 hours for the markets here. after yesterday's massive rally, which saw the s&p 500 up 1.6%. the nasdaq up 2.6%. equity futures at this hour looking to extend gains and taking a look at the treasury market.

4.055% has been a focus of decline in the ten-year yield. yesterday, we saw it as low as 4.03%. that is certainly something we will watch on the heels of the fed meeting yesterday. time for the squawk planner at 7:00 a.m., we get the latest interest rate decision from the bank of england. forecasters are split on where they will cut or hold after they hit the target for two months. we get u.s. jobless claims and second quarter propductivity costs. we will hear from apple and amazon and intel after the close. andrew. there is meta. you can see it is up today in a very big way. up 7% right now. shares of met tha up 7% right now. shares of met t platforms risin up $5.16 a share. revenue beating expectations. lifted by 22% growth in ad revenue. the current quarter, the midpoint of the guided range was

above estimates. on the call, mark zuckerberg saying a.i. assistant is on track to become the most used by the end of this year. take a listen. >> i do think that part of what's so fundamental about a.i. is it is going to end up affecting almost every product we have in some way. it will improve the existing ones and make new ones possible. it is why all of the jokes of how the tech earnings calls and talk about a.i. all the time because it is super exciting and it will change all of these things over multiple time horizons. >> in particular, and this is worth noting, zuckerberg talking about meta's core business. >> in the coming years, a.i. will be able to generate creative advertisers as well and will be able to personalize it as people see it. over the long term, advertisers

will tell us a business projection and budget, and we will do the rest for them. this is going to be a very big deal. >> meta shares are up 40% year to date, melissa. can they keep it up? the new investigation is extraordinary. as he mentioned, so many people using it. it is open source. i wonder what that means to the microsoft and openai of the world and anthropic if there is an open source model that people think is as good as or maybe not at top, but it can do just about everything and whether people develop on top of that, right? >> i think that is a very good question in terms of the a.i. arms race. also, what meta shows is you can spend, spend, spend on a.i. which is what all of these big companies are doing, but show the roi immediately with the core business and advertising. they are showing the near-term investment with the core

business, but showing the medium-term and long-term pathway to investment. a lot of companies are focused on the long-term which is a concern for alphabet and microsoft here. let's move on to shares of arm. lower this morning. beat estimates of 34 cents. it beat the forecast guiding to slight low lower growth rate. analysts were expecting an upgrade for the full year. the stock is up 70% year to date. andrew. melissa, this next story i want to talk to you about. i want to get your thoughts about what it means. bill ackman withdrawing plans for an ipo for what was going to be a closed-end fund a day after the fund said it would seek to

raise $2 billion. that was below the $25 billion cited in previous reports. this is bill ackman in a statement. he said there was enormous investor interest, but the question that remained was whether investors would be better served waiting to invest in the aftermarket than the ipo. that question led him to reevaluate the fund structure. what do you think? >> we heard it backed out as an initial investigator. it was clear it was on the skids on the path to the public offering. they had an offering if you understand ago which valued the firm higher. you wonder what's gone on in the time since to the valuation. >> right. to me, the question -- closed-end funds historically have not been a great bargain for investors. i think there was a sense that maybe both the way he was trying

to structure it and the interest in bill ackman. bill ackman has become a social media star. he has these followers on x and other places. whether the retail audience was going to come in, but the institutional guys, which is what you need at the base of the ipo. that is the question he suggested in his statement. some of the family offices that might otherwise have been interested, but maybe we should buy this, but wait to buy it. >> interesting developments for sure. shares of rolls-royce jumping in early trading after strong first half results. the forecast coming in higher than analysts expected. the company supplies engines for boeing and airbus. cars are manufactured on a wholly-owned subsidiary of bmw. carvana shares are sharply higher.

the company reported 14 cents earns per share. revenue of more than 100,000 units per quarter which was up 32.5% compared to the second quarter of 2023. the used car retailer offering up beat guidance for the second half of the year and expects 2024 to be a record year. doing better. it is not -- you can go back and look at pandemic time. it was a better time in the pandemic time. >> there is a bit of meme mania going on then for carvana. >> very much so. coming up, the federal reserve setting the table for the september rate cut. we talk to roger ferguson next. we will also talk to moderna's stefane bancel. that's coming up next on "squawk box."

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look at this kid! coming in tight on the line. team usa, what a run! it's gold for team usa. noah lyles with another gold medal. in case there was any doubt, who was the breakout star of these world championships. at yesterday's fed meeting, they held rates steady, but jay powell late out the circumstances for a cut in september. >> if we were to see, for example, inflation moving down quickly or more or less in line with expectations, growth remains, let's say reasonably strong and the labor market remains, you know, consistent with the current condition, then i think the rate cut could be on

the table at the september meeting. >> powell acknowledged the central bank was considering the risks of moving too soon or too late. >> i think they should have cut today, quite frankly. what difference does it make six or eight weeks? seven weeks? i think the inverted yield curve is a problem. the high interest rates is a problem. we see the bottom end of the economy, the bottom 40% of the population, they are really hurting on these price levels. >> that was jeffery gundlach. joining us now is roger ferguson. now vice chairman of the business council. roger, great to see you, as always. >> thanks, melissa. nice to see you. >> jay powell seemed to go out of his way to say a rate cut in

september was not a foregone conclusion. what was your take away from the press conference and from the statement? >> i think he went out of his way to say it is not a foregone conclusion, but frankly, it is far more likely than not. a couple of things struck me in the press conference. one was the revelation that some of the members had actually discussed a rate cut at this meeting which for me is a bit of a surprise. secondly, powell did say the economy is roughly in balance. in logic of the economy roughly in balance, not too hot, not too cold, suggests you don't need short-term interest rates in restrictive territory. the logic of the argument tends to lean to a higher probability of a cut than what chairman powell was willing to say yesterday. >> in terms of the dissenting members, they seem to tip their hand about the risks to the

other side of the dual mandate. not just focusing on inflation, but focusing on the risks to the employment picture and labor market. i imagine that is one reason, at least, there were dissenting members here if they were adding that to the statement. >> there weren't formally any dissents. folks with a different point of view than chairman powell. yes, i think as i've listened to the speeches over time and certainly, yesterday's revelations, i think what people are focused on in the interest rates at this level are stressing a number of families. we are seeing low and moderate income people having a hard time. one of the issues here is the dual mandate and powell was clear that they don't want to tip the economy into recession for no reason if inflation is continuing to perform as they hope it will. >> i think andrew has a

question. >> roger, i'm actually curious not so much about september, but what you think the rest of the year bodes and if we get a second rate cut and if you start to extend it out farther than that? september, i know everybody is focused on that, but it is after that which is the next order of business. >> i think that's right. i've been in the camp that probably two this year because as i think consistent with what we are talking about, the dual mandate and the cut of one .25 basis point does not take the short-term out of restrictive mater territory. powell was talking about the 50. that doesn't mean if things unfold the way they expect, there are not two this year. i can imagine some further reduction in rates and assuming

the economy continues to come in as expected with inflation continuing to come down. as powell said, it is a data dependent fed. we shouldn't get too far ahead of the data. two cuts is conceivable this year in things unfold as we expect. >> roger, do you think the notion of the soft landing has become consensus thinking among market participants is in jeopardy at this point? >> i think the fed is doing everything it can to avoid putting it in jeopardy. the risk of going too soon and moving down too soon and balanced with the risk of moving down too late tells me the fed is fingers crossed they can get to a soft landing and they will try to do that as best they can. i think the whole conversation is let's avoid the risk of soft

landing if things cooperate. everyone has fingered cross they will do the likely thing and engineer a soft landing. it hasn't happened in the past. >> jay powell said they are not data point dependent, but data depend dependent. making at the series of data and not just one point. we are on the precipice of a jobs report. roger, do you think the jobs report and unemployment reports will come into brighter focus into the november meeting in. >> first, i don't want to skip over the point that powell made. the market very much is data dependent. he was doing what i would try to do is smooth it out. having said that, one of the things that is giving them comfort is the labor market is showing increasingly imbalanced. evidence that the labor marketh.

they are not data-point depe dependent, but this is important to the overall frame of mind that it will be okay to start to move rates down. >> roger, always great to get your viewpoint. thank you. roger ferguson. >> thank you. okay. when we come back on "squawk box," the founder of 23-and-me looking to take the company private. just ahead, we hear from the breakout star of the u.s. women's rugby team. we will also hear from martha stewart. she will join me when "squawk box" returns from the olympic summer games. (the stock market is now down 23%). this is happening people. where there are so few certainties...

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genetics testing company 23-and-me has submitted a proposal to go friprivate. anne wojcicki said the company would be better equipped as a private entity. a remegulatory filing still nee to be approved or rejected. when we come back, we catch you up with the u.s. women's rugby player who is a social media phenomenon. and when we come back, martha stewart will join us live on set to talk about her partnership

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good morning. welcome back to "squawk box" live from the nasdaq market site in times square. the rally from yesterday with the nasdaq looking to add 86. the nasdaq in close focus with the 13% gain by nvidia yesterday. that stock is up 1% in the pre-market so far. andrew is at the olympic games in paris. andrew. thanks, melissa. let me tell you about something because this has gone viral and crazy. team usa women's rugby winning

bronze in dramatic fashion. completing the coast-to-coast breakaway to give the u.s. its first ever medal in rugby. for the u.s. women's rugby team, this win is more than about olympic glory. we caught up with social media star ilona maher after the win to hear more about what this medal means to her and her teammates. she's become the darling of social media. take a look. >> i mean, it just means after three years, we've focused on this. three years focused on getting a medal. it means so much for our program. we needed to show the u.s. that we are valuable and worthy and put funding into it. it is really important because our coach said in our last tournament in madrid, if we don't win, we might not have a program. those words stuck true to me. we delivered. >> melissa, we had investor

michelle kang on the show. she ended up donating $4 million to usa women's rugby. they are trying to provide more resources to the players and coaching staff ahead of the next summer olympics which is happening in l.a. in 2028. we asked maher about the impact of the donation. >> i'm so excited, but this is good. this is what we deserve. this is the momentum we are trying to build. so happy 35people are taking notice.amazing. we are trying to make this program better for all of those who have full-time jobs and those coming in later. we moving rugby forward. i think they can retire with such a great legacy they left. >> maher originally became a breakout social media star

during the tokyo tiktoks from the athlete village. posting meeting snoop dogg and jason kelce. she amassed 2 million followers on tiktok and 2.2 million on instagram. we asked how she will build her personal brand from these olympic games. >> as a female athlete, it's been tough because it's not a money-making thing, especially rugby. we're not getting million dollar contracts. for me, i want this to be a career for me and what i can do for the rest of my life. i knew that platform and tiktok industry could be that for me to create a brand and be something that companies and brands would find profitable to sell. it has been cool to build that up. i think it will keep rising and keep make anning money for me so

it will impact me and impact the younger generations to a michelle kang level and donate as well. coming up, we will talk to a social media sensation who has been a media sensation forever. an interview you don't want to miss. martha stewart will join me to talk about the next role with the olympics and her partnership with "the dogg" snoop dogg. we are coming back with martha stewart from paris after this. >> announcer: currency check is sponsored by interactive brokers. the best informed investors choose interactive brokers.

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here, man. i'm having so much fun. i may be the mvp of the olympics. i'm just saying. >> that was olympics correspondent snoop dogg tubing talking to tahrirmike tirico. he is traveling with the basketball team. i'm sitting here with martha stewart. she is now here in paris commentating with her friend, snoop. we should mention her 100th book. this is incredible. the cookbook coming out this fall. you have a big birthday on saturday. >> it's not big. it's a little one. a little birthday. i'm here in paris. i'm happy to be here. >> look at you all decked out. >> yeah. >> the ralph lauren on top. >> the american outfit.

>> do we want to show the shoes? >> look, snoop. >> can we get a camera on the shoes? >> i'm wearing snoop's skechers olympic sneakers. i like the glittery gold. we are eating escargo. e we are going to the george. i'm going this afternoon. snoop out dresses me. i can't keep up with him. he is amazing. he has done a beautiful job. >> extraordinary. the excitement he brought to the games. >> i think everybody loves him so much. the reports from back home are great. then i'm going to go to museums. i'm going to the louis vuitton foundation. i'm going to see kelly.

i'm going to the louvre. i had the best drink at the ritz bar. it's called the parisian. i had them make it with my favorite vodka. cucumber juice, elder flower, pink champagne and vodka. >> and you are going to versailles? >> yes. i'm going for dressage. i have the outfit i'm wearing. snoop, what are you wearing? >> you guys will comment on dressage? >> yes. >> he went viral last time talking to kevin hart. he was -- the horse was doing

the crib walk? how did you first meet snoop? >> i had him on my show years ago. i love rap. i tried to get eminem on. he wouldn't come. he got snoop on and we have become fast friends. he's really funny and intelligent person. he's just fun to talk to. he always has a take on the subject. something amazing. >> what do these games do for you and your brand with the global nature? >> i'm a curious person. i want to comment on where i go and what i do. this helps a lot. i think it just brings -- it promotes your name everywhere, but it also makes people think i'm cool. i'm cool. >> you are cool. you are cool.

my other question is the various brands in the martha stewart empire, what is selling right now? what are you feeling and seeing in the economy of your economy? >> our kitchen wares and bedding on amazon is flying out of amazon. my skechers are doing well. i'm in 17 categories. the step-ins for men and women are doing amazingly. i made a very big impact on scots miracle grow. i'm an avid gardener thanks to miracle gro. >> you have written 100 books? >> yeah. i work really hard. >> i know you do. >> i love writing. this is a book called "the coo cookbook." 100 of my favorite recipes with

amazing back stories and thanking the chefs and cooks all overall the place. they are beautiful and i think everybody will want this book. >> can we talk about the pot business before we leave? i don't know if you can talk about it, can you? >> i don't know. i'm sure. i smelled it on the streets. >> it's not like new york city. >> not like 34th street where my office is, i'll tell you. >> as somebody in the business, how do you feel about that? >> smelling it on the streets? >> yeah. >> it's fine. it's fine. >> you don't think it's too much? i think it's a little much. >> it's not about that. i'm only dealing with cbd. i work with canapy. we made oils and gummies. they have been well received. without government regulation, the business itself, is not doing well. >> i have a separate social

media question. meta had blowout earnings last night. when you were online and applying the businesses, what is working? is instagram the place for you or is tiktok the place for you? are you spending money on x? >> i haven't spent any money on it and i have a few million fol followers. i love instagram a lot. i think it keeps my fans enamored of what i do and interested in what i do. i think it's a way to communicate very nicely if you want with your audience. tiktok is also, i've been on tiktok for quite a while now. now just starting to sell product on tiktok. >> on tiktok. would you see the anxiety it might get shutdown? >> it's not going to get shutdown. >> martha stewart saying it will not get shutdown. why? >> it's too powerful. it's so used. it's so fun. you know, danger?

i don't want to get into the big danger of tiktok or instagram. they are all dangerous if they are misused? >> are you addicted to tiktok? >> i limit my views per day. i have to. that's usually in the middle of the night when i have inn somni. >> you have to keep the phone out of the bedroom. >> do you sleep? >> not enough. you look great, martha stewart. happy birthday. we look forward to watching you on nbc with snoop dogg and dressage on saturday. >> meta rising, rising, rising. how fabulous. >> do you own the stock? >> yup. >> full disclosure there. melissa, back to you. >> i want to know whatt else is in the martha stewart portfolio. >> that's a good question.

what else? >> i have been an investor in google, apple, the big tech stocks. tesla. i'm pissed at elon musk. he better get back to work in certain areas. >> what's your problem? >> i love electric cars. i have two electric cars. i'm getting the rivian truck. if we don't get going on this stuff and concentrate -- >> is the rivian a protest against tesla? >> no, i love the colors and i love the shape and the whole thing. i tried the cyber truck. it's too crazy for me still. >> martha stewart. martha stewart, thank you so very much for being here. this is a lot of fun. melissa. >> thank you. coming up, shares of meta on the rise after the positive earnings report. still to come, we will have the ceo of moderna joining us on set. "squawk box" will be right back.

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meta shares are higher by 6% after the company beat estimates for revenue and profit. b barton, great to have you with us. there is a lot to like out of the report. when mark zuckerberg talks about the a.i. assistant being the most widely used one by the end of the year, how do you bake that into the model? how do you look at the monitezation of investment? >> they are weaving that into the investment they are offering the marketers and series of tools they are offering

businesses to help them interact with consumers. what that is, what that is really a statement of core capability. that is the foundation they are building upon and it is impressive. they introduced this in april and the fact that it has ramped so much really supports what we're seeing in the business which is they're in a.i. and they're for real and in front of just about everyone in using a.i. to reengineer their business and make it a better business. >> it is not just an investment, but getting the return on investment which is what investors are hungry for. what was stunning was 1 million plus advertisers are using gen a.i. tools just this month. that is about 10% of the advertising base. how do you extrapolate that in the future and how does this impact your view of alphabet's ad business or amazon's ad business? >> certainly, it would seem to

me that meta has a cleaner road than at least alphabet where there's some question around the puts and takes with a search and puts and takes with youtube right now. with meta, it is a pretty shared reit. ramping up something that's impressive and it's still early days. i mean, they only have about 1 million of their advertising base which is over 12 million actually using these new tools that they've begun rolling out. they say with their tools they can do a better job of selecting the audience that a marketer wants to reap than a marketer can themselves. and design and do a better job and design a campaign that a marketer wants to put up with images leading the future with video. truly a one-stop auto robo stop for marketing. that's the future for meta. and they're just getting

started. >> zuckerberg actually mentioned the future down the road for advertisers to generate creative on the content side of the ad using a.i. tools. how close do you think that is and revolutionize what they offer right now? >> well, i think it's something that's already here to a degree. you're already able to use, you know, a.i. to design images. you can upload images and a.i. can select which one is the best for the marketing campaign. you know, right now, they're doing that, i think, it's targeted, really, most effectively right now at some of the smaller marketers for kind of images. but i think, over time, larger marketers, video, more sophistication. you know, so the future is starting now, but it's going to become more profound in coming weeks and months and years. >> hey, barton, i'm curious about rama and the open course

whether we should start to think about that for a.i., microsoft, google, aws down the road. i know we're talking about all of the amazing things happening inside of meta. the fact that it's an open source model changes things, no? >> it certainly does. it's one of the things kind of cool where meta is sitting. they've taken this position, open source, you know, they use open source to help themselves, really, they think, the large expanse of dwellers make it open source, get more people leaning into it. that will give meta, you know, access to more man power, more brain power, future set. that's their plan internally. and they take the core platform and build around it. i think some of the hyper scalers supporting llama. i think that's one of the platforms that aws is

supporting. but this whole idea of, you know, the correspond llms, a number of them at scale, huge investments, you know, this starts to become commoditized, it's going to make llma look smarter and smarter. and a smart play by meta. >> thank you. barton crockett. >> thank you. moderna shares are sharply lower after the company cut its 24 twosh sales forecast for covid vaccine, stephane bancel is going to join us with the stocks move as well. later, the startup ledger ceo is joining me live from paris. we're coming right back from these olympic summer games. verig magic.

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♪ welcome back to "squawk box" live in paris this morning. moderna just out with its second quarter results. the company reported a slightly narrow loss, $3.50 share, revenue beat, compared to the estimate. but moderna did cut its sales forecast. the stock, we should mention, down sharply, close to 13%. this morning to join us to explain what's it going on, moderna ceo stephane bancel. stephane, we appreciate you being here, a lot of questions from investors what to expect. a lot from what we see on the stock is the guidance, can you explain it. >> okay, so, with the structure

reduced last year, 600 lower to get over last year. yes, we've lowered the guidance, things are moving, we're committed to investors who are working hard in europe. we tried to overcome the fact that, you know, pfizer with europe and the pandemic. we're working to try to get success to another option. success to another vaccine with moderna. but, yes, coming back from the top elements in the country is that we have a lot of budget constraints and that they will not be purchasing in the '24-25 season. that is a disappointment. and then in the u.s., there's a

lot of pressure coming out right now to establish, the last year, we got shares after covid, there's reduction there. and then the guidance around the world asking us to delay from may '24 to early '25 shipments. we have not actually heard back from the company. and hoping they're reliable and the gap for this year. >> stephane, maybe this is like asking a barber whether you're supposed to get a haircut. but we've obviously seen a real switch in the way people are thinking about the covid vaccine and the uptake in the future. what is your sense of this, realistically, whether people should be taking it, when they should be taking it. i think warren buffett had a great line that said never ask a

barber whether you need a haircut. what do you think are the signs that you know? >> well, i think if you're over 60 years of age, if you look at the data. the season just finished for '23-'24. sorry. and there are cases of covid more than flu in the usa. actually, you should get your vaccine and your booster as well. and flu shots this time. and that's what you should do. every year, the virus every year, the virus evolves, so we need a new evolved tool to fight that. and it's very important. and then, with the age, covid shots every season is not i have known commodity, so i don't

qualify for that from that standpoint. but i worry about long covid. there have been people in the u.s. with long covid. sometimes for months of a very traumatic challenge to your health. and what you can do. some people reporting they're not even able to walk anymore. and they used to be running 5 or 10ks before. and you don't want to become sick. and it's very easy to go in the u.s., gets the shots, it's free with medical care. so you should be doing those things. >> stephane, let me ask you about this, this is the rsv vaccine and sales slump between moderna, gsk and pfizer, there are reports saying a three-fold point drop demand. $1 billion a year by 2030, 1.7 billion. and that's in large part because

of the cdc's decision to recommend the shots to be used by 75 plus, do you think that was the wrong decision? >> i think at this time, what we believe is up over time is not really available, people will be getting boosters for rsv. we do not believe that a single rsv booster is going to be adequate for a long-term for those 60-plus. at this stage, it's too early in the vaccine, it's only one year that the vaccine has been available. we seem to get more data. we believe as a company, what i believe personally, over time, there are going to be needs for boosters. >> stephane, i believe millelis at the nasnasdaq. >> you mentioned the pressures in europe, large european

countries in recent weeks telling you they're not going to be buying the vaccine. pfizer stood by its guidance from the sales. i'm wondering, you know, just from an investor standpoint, how much of a moat is there the remaining vaccine that you're forecasting for the rest of the year? >> yes, good morning. so we covid in the u.s., we have most of the contracts with the bigger pharmacies. and to where we are now, we're looking at customers on a daily basis across the u.s. we've been working with hospital medical which believed they could do much better than last year in that setting with access to covid shots. even, the european piece is a bit of an unique situation,

since 2020, with pfizer, without going for process data. today, because the volume of the vaccines are reduced in the u.s., europe has so much pfizer vaccines, they're not winning because of the strain they're facing. interest payment, the governments, and so on, and so we are working really hard for, you know, to try to get some european governments to move and get the supply. because think about it today. even if there's any issue in pfizer factory for supply, to have that vaccine available. people who are old, people who have cancer, that would be a public health disaster. so, in recent weeks we saw it

and reflecting how as a company to try to make sure that the best products are available to the people. >> stephane bancel, i want to thank you for joining us first here on cnbc. it's just past 7:00 a.m. on the east coast this morning. 1:00 p.m. here in paris. you're watching "squawk box" on cnbc. you're live from the olympic games, melissa is at the nasdaq in times square. we've got a lot going on beyond the games, among the top stories, fed chair jerome powell now says a rate cut could come. we've got details on that in just a few minutes plus, bill ackman, with the plans after the fund said it would seek to raise $2 billion. far below the possible $25 billion cited in previous reports. and google is updating

google maps and waze, getting incident reporting like you see on waze, icons for road closures, featured apps andent fi the entrance to buildings and show nearby parking lots. waze users can report new cameras and show more events like road closures for a concert. melissa, i know we got some news, after that. at some point, i need to ask you about the google maps because you've got news. the bank of england just out with interest rate decisions, cutting its key rate by 0.25 to 5%. five voted to cut rates, four voted to hold. and bailey cautioned by cutting too quickly or too much. there you have it. futures here. looking to extend the big rally among the big tech stocks, s&p open 23 at the open, nasdaq up

higher 102. and let's get to dom to the morning movers. good morning, first day of august overall with a check on biogen. those shares are up slightly. now up 2.25% after the company reported a beat for revenues and profits. they raised their earnings forecast as the launch for new treats are expected to make up for older multiple sclerosis and other medicines. those share, by the way, lost about 19% this year. nice pop at the bell for biogen. let's take a look at shares of meta platforms, speaks of that tech trade. the company reporting better than expected quarterly results as it continues to gain share in the digital advertising market. those advertising revenues climbed 22% year over year. analysts at goldman this morning joining a slew of others,

reiterating the buy rating of stock. let's finish up with carvana. shares are up about 12%. the online retailer reported a surprise profit pourthe quarter. the earnings came at 14 cents a year versus a suspected loss of 7 cents. that beat was trailed by sales up 30% year over year. separately, carvana also filed regulatory paperwork for the at the market sale of stock for about $1 billion worth of stock. carvana shares on balance are tripling in stock price. up over 12%. back to you. >> thank you, dom. >> melissa before we go to break, here's my google maps question. i like to know how and where the accident are, that's a good thing. i like that i get to knowy the police are and cameras are. i don't know they should be releasing that information.

>> it would change your behavior, because you should always be law-abiding. >> of course you should. of course you should. here we are, we have cameras rolling, we're on live television. >> you know where they are. >> i want to know if you think it's a good idea for them to be showing you the cameras and the police are? that's a customer service, i guess. i feel uncomfortable about it. >> it's a large societal question. i don't care. >> okay. well -- >> i always abide by the law, if the police are down the street or three blocks away, it doesn't matter to me. >> doesn't matter. warren buffett's got that great line, you know, if the cop follows you for 500 miles, they'll find a way to give you a ticket. >> exactly. >> when we come back, we've got a lot more tickets on today's broadcast. a breakdown on the latest meetings, conclusive meeting

with the crypto company wallace here in paris. and etsy ceo josh silverman is going to be our guest. all of that as "squawk box" rolls on from the summer games in paris. ♪ energy fuels, a leading american uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. energy fuels.

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did somebody say “easy moves”? ♪ ♪ oh no. no, i was talking about moving your internet. this will move the internet. ♪ ♪ ooh, ooh. -let's keep it professional. professional dancers! -ok! stay connected during your move with the best in home wifi. easily transfer your services in the xfinity app. bring on the good stuff. fed chair jay powell telling investors that the central bank could possibly lower its interest rate early in september. steve liesman joins us with more, steve, good morning. >> good morning, melissa. yeah, the fed rate held steady as expected. in a statement, the economy considerably in a place where rates could come down. fed chair jay powell said explicitly a september rate cut was on the table if the inflation rate continued to decline. >> if we were to see, for

example, inflation moving down quickly, or more or less, in line with expectations, growth remains, let's say, reasonably strong. and the labor market remains, you know, consistent with its current condition, then i would think that a rate cut could be on the table. at the september meeting. >> powell acknowledged some policymakers at the meeting wanted to cut right then and there. but the view of the majority was to give it one more meeting and another round of data. in the end, powell said all agreed with the statement, but noted several changes to the economy and policy outlook. first, they saw risk to employment and inflation mandates continued to move into better balance. they were attentive to risks and the dual mandate. and saw better progress towards the 2% target inflation, and more moderation in the job market. there was a statement in the

press conference, and from evercore wrote, fomc statement cautiously tees up for a september cut, powell whacks it down the fairway. taking a look at the 2025 funds market. the fed wept into the meeting with poised for a september cut. with the funds contract it actually took the statement a bit more hawkish than expected. but then you can see rally rates came down and became more confident after powell spoke. placing the implied at 4:59, three cuts and then some now. some of that confidence may have come from the answer of my question when i asked powell about the future of rate cuts. he made no promises but confirmed he sees rate cuts as a process, melissa, not likely a one-off move by the end of the year or in september. so, melissa, what everybody's

talking about this morning is how far they go and how quickly they get there. >> yeah, i thought that was really a key question, steve, how do you think of initiating the first cut. do you think of it as a first cut? or a series of cuts? i thought that he really -- i mean, he made it clear that it wasn't just a one-off. but at the same time, left it really open saying we are going to do what we do as we get the data in. >> yeah. i think that's right. he can't precommit. >> right. >> and he won't precommit to doing more. and at the same time, as you said, i think it was back in june, what's the point of cutting once. what does 25 basis points get you? and it's almost nothing. you've got to -- and really, the answer i wanted to the question of whether or not this is a normalization or a tweak. peter brookmar talked about a

tweak. that may be in a 75 basis range. the normalization, though, i wish i had the element here, the fund cut, 80 basis points, they brought up that right away. if you look further down the road, melissa, there's i don't know what you want to call it 75 to 100 points basis built into as well. >> yeah, it's a very dovish outlook for the future. i'm curious in terms of the odds for september. price more than 100%, i don't know how that works and it came down a little bit after the press conference yesterday. isn't there, though, a not insignificant probability of a 50 cut in september at this point? >> you know what's great, melissa, i don't have to guess on that. i'm going to look it right up while you ask me the questions. >> i know you got the numbers right there. >> i got the numbers right here. by the way, i never saw the odds greater than 100%. maybe that's somehow possible. you know if the federally,

really, really wants to cut, it's 125. >> i didn't get that. >> and at any event, i've got a 12% probability of the rate cut by -- or 50-base point rate cut in september. so, there is some, you know, i think you got to get a really lousy jobs report for that to happen. >> right. >> i don't think that's the case. and i think that, you know, the markets got priced in, september, november, december, i don't know if that's maybe a little aggressive. or maybe i'm suggesting it is a little aggressive. if i know powell, i think he's going to want to go every other meeting. he likes that rhythm, you know. >> yeah. >> that's one he's used before. so, we'll see. i mean, look, we've got two inflation points we know in september. the jobs reports, one of them coming tomorrow. all of that will be consequential. but i do want to leave you with this thought which is it's not like you have to hit those

numbers on a dime. >> right. >> powell has kind of made clear there was some tolerance in there, right? >> yeah. >> that the default position, it sounds to me, is to cut, and you have to have data way out of line or significantly out of line for the fed to be dissuaded from that. >> data-dependent, not data-points ds dependent, steve thank you. >> good memory, melissa, thank you. coming back to paris, the move cryptocurrency, the ceo of crypto wallet, ledger. and later, the baked goods, one company making waves and that one is krispy kreme, we'll look at the company's growth here in france. you can believe it, this is like the hot thing in paris, krispy kreme. we'll show you what's going on. "squawk box" coming back live from paris after this. time now for today's aflac

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today's aflac trivia question. which of these sports were once part of the olympics? hot air ballooning, fly-fishing or brazilian jujitsu? the answer -- hot air ballooning. welcome back to "squawk box," we're in paris this morning after nearly 70,000 earlier this week, we'll show you where bitcoin is sitting, 66,000 coming off the high. the next guest, crypto startup ledger at bitcoin, last week the company announced a major new change, hiking the wallet by 40%, launching a cheaper version as well. joining us in an exclusive interview, pascal gauthier, good morning. >> good morning. >> it's great to have you here. for those who don't know what ledger does, give us a basic understanding of what this business really is? >> okay, so, your phone and your

computer are not great tools to protect secrets. we all know this, okay? they're being hacked every day. so, we designed a tool to protect secrets. the way we do it is to choose the ping feck ktechnology, what have on your credit card, we use this, instead of your credit card, now, your bitcoin. >> so it's your bitcoin, you can own it. >> so, how does it work exactly then? >> it's like the ipod in itunes? >> yeah. >> similar here, in the ipod, you have your music, in then you have your product keys. and itunes was a software to change the music. and we have ledger live. and ledger live is where you program your money. you can buy, you can swap, et cetera, et cetera, this is how it works. >> how should people feel about those who are keeping their

crypto in the cloud, if you will, or on the exchange? good idea or bad idea? >> okay. in general, crypto was designed so you don't have to suffer a 30 third-party risk. >> right. >> we believe the ethos of crypto is to actually keep your money yourself this is where it's the best secure. on the block, it's a rarity. >> how does that work in the context of a lot of folks are now trying to get into bitcoin, and maybe ether through etfs and the like. and institutions buying that stuff on the back end and how they're storing it? >> you know, bitcoin from 2008, coin base want onboarding users, the etf is a new coin base. users are coming in and good for the whole of the industry. in the end, bitcoin is a peer-to-peer network payment system. so if it's not peer to peer, it

has no value. whoever invests in bitcoin etf has to understand that the real value is peer-to-peer system. i think pushing the price is good. this is the blockchain, the more application in the blockchain, so it's all good. >> how much do you care the price is at $64,000 which is obviously up many, many folds since you started your business. but now down a bit from those who have bought at some of the highs? >> so, we don't care about this speculative aspect of crypto. we care about crypto as a product. what do people do with it. we design products. stacks were designed by tony feedal, inventor of the iphone. >> yes. unbelievable designer. >> exactly. we focus on what people do with

it whether or not not so much to speculate. >> how did you meet tony, by the way, how did you get involved in this? >> by chance, tony was in paris, and our chief experience officer, through conversations. and i was pitching him joining the company. we pitched tony, and tony got excited. >> how much do people worry about losing their tokens? one of the things i'm not keeping on the exchange is the other view that it's going to be on some kind of drive somewhere and it's going to be gone forever, they lose their password, they lose their pin? >> that's correct. ledger would design something where you have your photo and then the backup. it's a system, your ledger is a twin, then 24 words as a backup, as a master passport. you can keep them safe in the bank, on a piece of paper in the

metal, but a ledger where your charred to your application. and now with stacks and recover at the time same time, we have a product that is good for mass markets. >> we were just talking about this bitcoin conference before. former president trump was at that conference. what do you think of the politics around crypto in the united states? interestingly, it feels like there's at least a more structured regulatory regime for crypto here in europe? >> i think wall street touched bitcoin and politics are taking care of the matter. i think bitcoin is here to stay. actually, many americans already have bitcoin, it's becoming a de facto political matter. and geopolitical, who's got crypto, which countries? who is going to use crypto.

>> but they're talking about whether there should be a bitcoin reserve? >> yeah, geopolitics. so it's interesting. >> who should secure that? >> well, you know, that's a great question. probably ledger, why not? you know, we have the technology for that. we can help secure that for the u.s. government. but in reality, i think what's great, one, bitcoin is here to stay. and that's been adopted by everyone, if you like. and two, everyone is takine consolation in private property, and that's a fundamental right. especially the u.s. is the land of the free, right? >> right. >> and i think digital property is a fundamental right. thing is coming from ledger. >> we're going to run your prediction where bitcoin is going to be if five years. >> i don't run on prediction, i run on security.

>> okay. one of france's most exciting startups, melissa. coming up, why parisians are crazy for krispy kreme. that story is next. check out the futures as we're looking at a higher open across the board, nasdaq up 120. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

welcome back to "squawk box." we are here at the olympic games in paris. a country with the most michelin-starred restaurants in the world. so, it might surprise you that the locals here have a taste for krispy kreme. at the grand opening of the flagship store last year, more than 400 customers lined up to get their hands on the 45,000 doughnuts it makes every day. you know how much i like doughnuts so we went to check it out. ♪ >> we're the olympics, people are hopefully going to come here and buy a box and watch the open with their friends, family or watch the games. this is what krispy kreme does, it can have a magic to share indulgence, the sweet brand that we are.

♪ >> a laot of brands, france is one of the biggest markets outside of the u.s. we believe it's the same for us. france is a great market. great opportunity. we've seen this so far. we're seeing the consumer, we're seeing the number one shop selling to the world, in the first month of opening. here we have a lot of biscuits that we have in the market, in the core range. actually in france, with a coffee shot, you add espresso with a little biscof. we announced planned for germany and brazil. 90% of the point of access in three years, and we continue to grow. >> and since the opening of that store, the company has launched eight more locations. the plan is to get to 500 points of access in five years. so the french will be able to

also be able to grab a box at their local grocery store just like back home, melissa. i've been eating a lot of chocolate croissants, everybody knows how many i've downed. maybe 50, and a box of krispy kreme, it's crazy to think with people here, when they have all of these chocolate croissants that they're eating krispy kreme. it's amazing. >> and have you actually tried the krispy kreme in paris, andrew? >> have i tried them -- the producers behind us, how many boxes -- i might have eaten a whole box. willie geist was there, too, by the way, he might have had a couple. >> oh, yeah. you're throwing willie under the bus. >> i'm just saying there are boxes and a lot of doughnuts eaten. >> we need to get that doughnut counter back.

i feel like it's going to go through 20 based on what you're saying. >> we've got a segment tomorrow, if you like crepes, we go on a crepe crawl tomorrow for those who are into it. you're going to see the best place, creperies in paris, we rate them, melissa, get ready. get ready for this. when we come back, though, get ready for this one, we need an app, really, etsy revenue topping estimates, the company warning decline in sales year over year in the third quarter. take a look at that stock. it's off marginal in the news. off a half point. josh silverman joining us. jd vance wants to give more votes based on how many children they have. this a gooidd ea or bad idea? j john forz weighing.

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welcome back to "squawk box." we're looking to extend our gains, particularly on the nasdaq, nasdaq up by 113. it's worth noting premarket meta shares higher by about 8%. nvidia shareson top of

yesterday's gain up 3% today. meantime, shares of et cetera see slightly lower. joining us for a first cnbc, josh silverman, the etsy ceo, josh, great to have you. >> thanks for having me. >> talk about consumers and the trends you're seeing, because i know the merchandise for next quarter is lower. >> it's a tough time, wells fargo said 60% of americans by the time they pay bills they have very little for anything extra. we're seeing that across cpg, restaurants, every industry is seeing it. and yet, while we're swimming upstream, we're proud at etsy, we're able to maintenance that position. we're stronger, leaning into what makes etsy different and most importantly not being pulled downstream like everybody else at the bottom.

we came in at or above the top of guidance across even metric and it's because we think we're really leaning into what makes etsy different. >> talk to us about the loyalty program you just recently announced. you're trying to get the occasional buyer to come back more often? >> yeah, we announced loyalty program in beta invite only in september. really, it's a paid royalty program, where we're looking to take some of our occasional shoppers and really give them a reason to come back a lot more often and start their missions on etsy. instead of coming to etsy because they can't find it anywhere else. >> why is it that you can't shake that? i think of etsy, and i think of etsy and other consumers if you're looking for something unique, handcrafted, you go there. but that's only an occasional thing, for gifting or specific reasons. it's not just i have this much money to spend and for my household, i'd probably go to amazon first.

>> yeah, etsy is doing an amazing job of getting you the thing if you can't find it elsewhere. gross sales, $4 billion to $12 billion over the last four or five years so we've made incredible progress, actually. to go to the next point, we want to be the starting point. we want to be the place to go when you're planning a wedding or having a baby or redecorating your home or planning a dinner party. and we have so much to offer. that's going to require organizing this incredible amount of inventory. over 100 million items, every one of which is unique, in a way that's easy for every occasion. and other things like llm, where the next advanced a.i. is super helpful in organizing a ton of information that's easy for humans to understand. >> so what has been your investment in a.i.? and can you quantify the return? >> absolutely. so we have been investing in advanced a.i. for many years. we're not starting from scratch.

so our ability to understand what you meant, not what you said. for example, if you were to enter a search for cocktail attire for men. we'd be showing you blue blazers. we've been doing that for a while even though there's no keywords in common. that's neural technology, the same technology that underpins llm, and we've been doing that for years. we've partnered with the best in the industry to do this so we've been leaning in and able to measure we've been getting very good returns from this. i'm quite optimistic what the future holds particularly for advances in a.i. and etsy. >> when you start to be the place where people start their search, you then get into an arena where the competitors are much bigger and spend of marketing is bigger. you're competing with amazon, you're competing, target, walmart, lots of different places. so, are you thinking of it as a marketing spend to sort of get you into that category, where consumers are thinking of etsy

first? >> when i joined etsy, i think we had about $3 billion of gross merchandise sales. people said we're about as big as we're going to be and how can you compete with amazon. now we have $12 billion of merchandise sales. only amazon and walmart have more active shoppers, 9.5 million people that shopped on etsy. >> shopped or bought? >> bought on etsy in the last 12 months, 90.5 million even in these very tough economic times because we offer something unique and different. the tutor is for people to understand they can start their commerce mission on etsy, and we have a ton of room from go from there. >> josh, thank you for your time. andrew. >> thanks, melissa, thanks, josh. when we come back, should

more kids mean more votes? that was an idea that vice president nominee jd vance once floated. and later, we catch up with serena williams here in paris, we talk about that and straight miead, do not go anywhere, we're cong back from the summer games, live from paris, after this. inds. ♪♪ go deeper with thinkorswim: our award-wining trading platforms ♪♪ unlock support from the schwab trade desk— our team of passionate traders who live and breathe trading. ♪♪ and sharpen your skills with an immersive online education crafted just for traders. ♪♪ all so you can trade brilliantly. ♪♪

republican vice presidential candidate senator jd vance proposed three years ago that parents get additional votes on elections based on how many children they have. that a good idea, john ford is here. >> good morning, giving vote not as radical as it sounds. let's give context to what senator vance actually see, 21, collegial institute of virginia, vance pointed out middle class

families with kids have more a of stake in america's future and therefore should have more in shaping it. before you say that's outlandish, i'll point out that our tax code has these types of leanings offering reductions for children. there's also a demographic reason. if the u.s. doesn't do something, we'll haven an ageing population that needs to take and too few young people to support them. what china is grappling with now. a population of 300 million people in the late stages of their careers who soon won't be so productive. taking religious overtones out of it, it's about innocentivizi family formation. >> tax breaks are one thing, but influencing political power, that's a whole other dynamic here? >> yeah, melissa, it's a horrible idea, at the start, it's blatantly unfair for people

who young to have kids too old to live in a house to afford kids. to shift from suburbs and rural areas to professionals. then it's practically unworkable. family of five, two parents, three kids which parent parent a blended family or foster parent with six dependents. does that person get seven votes? the idea is flawed at the core. people who have biological children automatically have more of a stake in the country's future. half of active duty enlisted military personnel of 25 years old or younger. i'd say pretty invested. same goes for young teachers serving troubled schools. you want parenthood to be more popular, affordable high-quality education. >> andrew's got a lot toff say about this. >> i just -- can't even -- first, i give you credit for trying to make both sides of this argument. i think there's really only one

side. actually curious how hard to make the original case there? >> you know, not too hard. i mean, if you look at the demographics, you can make all kinds of arguments for all kinds of policies including immigration and younger people coming in. including education on one side. young people tend to be more concerned about the environment. that's an issue about the future certainly. younger people should get more votes? i think there are arguments to be made on both sides having policies that take demographics in as a concern. just where you fall on the political spectrum which policy you like. >> incentivizing, more children, look, it's not a terrible idea. doing it with votes. i'm not sure that's the -- that's the path. >> yeah. tax code is one thing. votes another. >> my two cents and all they're worth. >> yeah, but after taxes that two cents -- well, "on the other hand" newsletter a place to

continue to think about these things. qr code on the screen. see? it's there. type in cnbc.com/otoh to get the full text of both arguments and share. >> new form, jon, gerrymandering. think about that. >> oh, yeah. always looking for new ways of doing that. right? >> yeah. it's a big -- it's a more complicated version of it, though. when we come back a lot more here on "squawk box" from paris. serena williams on the rise of women's sports and the next chapter in her life after tennis. later, a preview. big tech earnings coming up after the bell today including apple, amazon and intel. all report today. pepreview of what investors can exct. coming right back from the summer games in just a moment. [window slamming] woman: [gasps] [dog barking] ♪

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morgan stanley is partnering with the women's tennis association to remove boundaries... ( ♪♪ ) because this game is for everyone. welcome back to "squawk box" right here in paris. cnbc hosted a leadership forum of the ambassadors official residents here in paris. becky and i spoke with the g.o.a.t. serena williams. four-time olympic medalist and asked about growing viewership in women's sports. >> women have been around for ages and we have -- forever. we didn't just start a year ago

or two years ago that the media thinks. we have been playing, kicking behind and really good tat. it's technology. we're able to tell our own stories have our own platform to be able to do that and people see not only are we great players, now we have a great, there's personality and things behind that. so a lot of people are really getting behind that movement. >> and with serena announced in 2022 the u.s. open would be her last tournament, iconic essay in "vogue" magazine. never liked the word "retire." doesn't feel like a modern word to me. thinking of it as a transition. we asked how she's thinking about that next chapter. >> i don't like the word "retire" because i have so much more in me and so much that i'm doing. i have been investing actually for 14 years now, and so that's something i've always been passionate about and with my company we just invested women, we invest in people of color, we invest in women of color, we

invest in literally everyone because we feel everyone deserves to see the table. diversity is really having everyone there. doesn't matter what you look like, what your background is and that's what we want to do as a company and a brand. that's what we do and that's actually, could be possibly harder than tennis. it takes a lot of work. >> our next guest understands importance of women's sports. power of "she campaign" decorated olympians, simone biles and katie ledecky and lighting up the city. the ceo and president of a gap-owned retail athleisure and performance brand. nice to see you. >> nice to see you, too. >> when you sat down i said, what are you wearing? a athleta doesn't make -- >> we are the buy women for women brand but the most incredible fabrics in the category. so a few team members, shout-out to kate and brandon, nice enough

to make me custom athleta. 90 degree heat if paris, look good and enjoy some of our fabrics. a lot of fun. >> how do you think about performancewear versus athleisurewear? what's the difference? where are you taking all this? >> in athleta for us, big theme for consumers, make products for all the way she moves. we learned, consumers learns fabrics that allow you to move through the day no matter what you're doing. an appreciation for performance fabrics. athleta's heritage has been innovating fabrics for women by women going back 26 years. and so you have the ability to go right from the your class to work, walking the streets of paris. whatever you need to do and feel comfortable doing it. >> how do you differentiate what athleta's doing from what lulu's doing, from your former company aloe's doing, nike? >> sure. i think athleta sits uniquely in

this category. one, the only premium brand. major premium brand that only makes product for women. we also are the only premium brand using premium fabrication to make things for girls down to 6 years old. differentiators. in athleta a power of "she" brand platform and how we bring our purpose to life. within that platform 13 incredible game-changing women. >> right. >> who in the power of she collective members help us tell those stories. >> the price point? it's not -- not where -- i say, work it out, which is up here. right? where do you sort of see yourself? >> so we're definitely a premium brand. we use all premium fabrications, as i mentioned. i'd say probably in the range, category, 80th percentile. important to be appealing to a broad range of consumers.

>> what does it mean to be part of the gap? >> i'm in this almost 12 months. 12 months next week. celebrate a year with the brand. for me an incredible experience. the power of this organization, it's access to suppliers. i talk about fabrics and product quality, it's that supplier network that you don't have access to if you're not part of a major organization like this. incredible resources, and we are in the middle of executing these reinvigoration playbooking across all four brands on purpose on relevance on product on experiences. so i found the resources and support to be one of the best. >> going back to performance versus athleisure. what do you think the difference is? >> i don't know so much of a difference. performance is often what you're talking about in the fabric itself. how does the fabric work? cool, care well? travel well? doesn't necessarily mean you're using it in a performance environment. so it's, how do you take that and put it into products people can wear for leisure, or

whatever else they're doing throughout the day. >> great to see you. thank you. >> nice to see you. thank you for having me. >> thank you. it is, melissa, by the way, now just past 8:00 a.m. on the east coast. just past, what is it? 2:00 right here in paris. you're watching "squawk box" on cnbc. i'm andrew ross sorkin at the 2024 paris olympics, melissa lee at the nasdaq in times square. a lot of news this morning. the biggest, perhaps, shares of meta jumping. beating analysts estimates. better than expected current forecast. stock up 7% on the back of that right now. bank of england cutting interest rates first time in more than four years. 5-4 decision, bank taking key rate down a quarter percentage point and this coming after the fed yesterday holding rates steady in the u.s. meantime, hedge fund manager bill ackman, pershing square usa withdrawing plans for an initial public offering.

investor demand appeared to shrink from original expectations. ackman said back with a revised plan for the offering for that fund, melissa. futures this morning pointing to a higher open. s&p up by 17. nasdaq, actually lost ground here. nasdaq higher by about 64 points. get to dom chu with a look at this morning's pre-market movers. >> melissa, andrew, started looking at shares of meta platforms up roughly 7% now. now 8%. over half a million shares of volume. social media giant behind facebook, instagram, whatsapp better than expected quarterly results and gaining share in digital advertising market. advertising revenues climbed 22% from the same time last year. and this morning, a slate of analysts teams across wall street out with positive commentary on that stock following on the heels of earnings. keel an eye on this. shares of anheuser-busch, up a

half percent or so u.s. listed shares. brewer of bud wiser, mick helob ultraand others, fell shy of the mark the others. volume fell overall sinking 8% asian-pacific region. 3% in north america. keep it on anheuser-busch. i know the ceo of ab inbev joining "squawk box" tomorrow from paris. keep an eye out for that interview. finish on shake shack. stocks soaring at this point after a premium fast casual burger chain reported beat on revenues for the quarter. profits appear to have matched consensus estimates. sales growth at established restaurant locations, same shack sales, came in better than some analysts estimates as well. on balance over the last year up 29% and this morning up 14%. does make me feel a little more in terms of hungry for what's going on right now, melissa. i can't stop thinking about

shake shack right now. >> between shake shack and krispy kreme earlier in the show, got it covered. >> about food. >> thank you. broader markets. in focus, meta earnings last night, twos more max seven names out tonight. joining us for more head of u.s. equity and quantitative equities. great to see you. >> great to be here. >> from bullish too neutral. what triggered that? >> bullish on big parts of the market. i think this earnings season is showing kind of an interesting differentiation between the haves and have nots even in tech. able to monetize a.i. or surprise on revenues. really outperform. whereas those with high expectations no delivery have lagged. i think that's kind of where we're at. at this point. we're kind of done with that easy money from big tech and this idea that a.i. is a new

thing that's driving capex and growth. but i do see strong signs for cyclicals from here. i would press that moving into the second half. >> going back to the a.i. trade. before it was sort of a blank check investors wrote. spend the money. >> exactly. >> we believe in you. a.i. returns will come. this quarter a little more discrimination. >> exactly. >> on the names. is that a continuing trend or go back to that blank check mode? >> i think more of a show-me trend. what we're seeing now. which is, okay. everybody is spending on a.i. who's actually using it to make money? where are we seeing the big surprises? i think revenues, surprises, are going to be more important than just earnings surprises. so what we've seen so far this quarter is that revenue beats have actually been a little bit less than average. and that's what i think we need to see in order to keep this thing going. on the overall index, our target

is 5400. a bit lower than where we are today. the idea is index itself probably is going to move higher over the next 12 months. we're heading into a pretty interesting patch right now. think about it. august, typically a seasonally weak month. september as well. then we've got this election coming up which generally tends to drive volatility a bit higher this is a time i think to pick your spots. >> yield curve on the horizon. >> indeed. does that add for the forecast for the markets? >> i think it's actually -- good for certain spots. i think financials could do well in that environment. we're finally in a phase of the yield curve that's good for financials after many years of being in a flattening environment. you know, we've got a sense that inflation is contained and the fed is likely to begin cutting sometime this year. we think december our economists or pencilling in december as the

first cut. the idea, at peak rates on the short end. steepening yield curve. growth surprises here and there and capex guidance remained very strong despite all of the reasons that companies have to kind of stall and delay projects. so i think we're in a pretty good spot for the economy overall. where i worry is about just the really crowded areas of the market that aren't necessarily delivering, and those are primarily, you know, growth. secular growth rather than cyclical growth. could be an environment you want to buy traditional capex rather than just a.i. capex. so those are some of the trends we're leeaning into. >> dividend payers. >> i know. south side wonky. think about it. fed is about to cut rates at the short end, we think. and that means cash yields drop. where has all of this retiring money gone over the last couple of years into cash and short

duration bonds, and retirees are looking for investments to live off of. they need a real rate of return that is healthy. i think dividend yielding stocks offer that real rate of return that is much more attractive than even ten-year bonds at this point. >> curriculums that pay dividends. >> match up, a nice intersection of dividend growth, industrials, financials, energy. these are some of the spots we're finding these companies, but i think a lot to look at in the s&p. maybe not the darlings that worked so far this year but other areas that start to outperform. >> thank you. great to see you. andrew? >> thank you. >> thanks. coming up, interviews on two of the magnificent seven companies set to report earnings after the bell tonight. apple and amazon. speak with analysts of both tech giants, plus much more from paris. including highlights from an interview with legendary sports broadcaster al michaels.

calls his a.i. genre rative voice doing the recaps scary. we'll explain on the other side. you're watching "squawk box" live from the olympic games of 2024, after this. y ambitions. like a saving for a better swing. loosen that grip. (♪♪) with sofi, i earn more money on my money and pay no account fees. plus i'm investing in my game. sofi can help fund all your ambitions. (♪♪) no matter how ambitious. (♪♪) bank with sofi to score a higher apy and an epic welcome bonus. sofi. get your money right.

box." live in paris. showed shares of meta a few minutes ago and jumping on the second quarter earnings. a little earlier in the show. speaking to martha stewart on the set. wrapping up the interview and noticed a meta charted deplayed. what she said then about meta and then tesla. >> meta. >> going to be a lot of fun. >> meta rising, rising, rising. how fabulous. >> there it is. >> yep. >> you own the stock? >> yeah. >> full disclosure there. >> nice. what else is in the martha stewart portfolio? >> what is? what else? >> i have been an investor in google, apple. the big tech stocks. tesla, i loved tesla. pissed at elon musk. >> pissed at elon musk?

>> i am. better get back to work in certain areas. >> what's your problem? >> i love electric car. i drive -- had two electric cars now getting the rivian truck. if we don't get going on this stuff and concentrate. >> and against tesla? >> no. love the colors the shape, the whole thing. tried the cyber truck. still too crazy for me still. >> martha stewart singing praises of tiktok. said flat out it's not going to get shut down. martha stewart turning 83 years old on saturday. a big birthday party for her here in paris. she's going to be hanging out with snoop dogg calling parts of the olympic games including some of the equestrian games and versailles starting saturday. apple one of the two marquee names reporting after the bell tonight. joining us what he's expecting, ubs u.s. i.t. hardware analyst.

good morning to you. help us understand what we should be looking for, what's the big headline you're waiting to see? >> good afternoon, andrew. again, thanks for having me. big investors focusing on three discreet items going into tonight. first, iphone revenue looks like in the quarter. more importantly what it looks like going forward. i think investors are immensely focused on the commentary around not only the june print but the september quarter and ultimately what it looks like in 2025. i think investors are focused on services business. an expectation that's going to accelerate next year as a.i. becomes a bigger part of the portfolio. apple has to talk what they think the initial portfolio could look like, the ecosystem and ultimate accelerate from the 11, 12, 13% growth seen currently. third, the most underrated view of what people are looking at going into the margins, company and other hardware companies benefitted from low component costs the last 12 to 18 months.

gross margins going forward particularly with new launch critical. the company will talk about tonight, not only give guidance on the third quarter, talking about stockpile of inventory. d ram or memory. three things that will help dictate the stock. to be fair, investors pivoted at 2025. just leave it there. >> what's your target price on the stock? >> $190 price target. and near -- >> so related to that. by wait obviously sitting at 224. that would be a temporary short in your mind i think. ask you this. on the a.i. front, one of the things we keep hearing a lot of a.i. features jerked out over time as opposed to be ready for launch come this fall. how much do you think that's going to matter when it comes to the hardware upgrade cycle? >> look, i think we've got a lot of work. the consumer market is a little less enthusiastic than maybe

some peers regarding the option of a.i. for example, in china not apple intelligence or chatgpt. second largest market for iphone. there's jedi smartphones. samsung lost their parter earlier this year and barely shaw a blip up in terms of demand. the fact dribbled out into 2025 is not really matters. it's the lack of compelling applications and ecosystems underdeveloped. we don't think the market will adop think this year and next. >> okay. go to seattle. talk about amazon. what do you think there? >> so we don't cover amazon. we're going to have to take a pass on that. my colleague covers amazon. focus on hardware and networking names. i wish we could comment. >> a name for today.

ask you as a separate question. maybe this touches on the whole ecosystem and touches the a.i. piece. looked, saw meta earnings. everybody's crazy about meta right now. one of the questions that i have about that is, talking about llama. they're open source model. how much do you think the possibility of the open source model coming out of meta actually hurts everybody else? meaning, everybody else is doing these sort of close source models. whether people say we don't need that. able to base what we're doing off of what meta's doing? >> we cover other companies that are more infrastructure platform related. while apple is much more of a closed ecosystem to your point. apple developed their own small language model impressed directly on to an iphone. the modal that works best for apple. llama isn't particularly operate for apple. they want a model works in conjunction. apple made the right strategy.

what's needed to run this is intensive and i don't think drive demand for apple or meta's llama model has any impact at all, thank you for rolling with my attempt to get you to talk about amazon. >> anytime, andrew. thank you. >> melissa. heading to break. check out shares of eli lilly rising pre-market trade after a late-stage trial showed weight-loss drug reduces risk of common heart failure for adults with obesity. the drug cut the risk of negative outcomes including death by 38% versus a placebo. that stock up by 3.5% now. coming up, initial jobless claims and a first look at second quarter productivity. opec meeting today. why here in america natural gas is saving the grid. brian sullivan joins us with that. as we head to break check our shares of hershey. the chocolate company missing top lines cutting guan fidceor

the full year. stay tuned. you're watching "squawk box" on cnbc. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities.

welcome back to "squawk box." we are here in paris live at the olympics games, but there's a whole other game taking place in the markets this morning, and looks like folks are winning. dow up about 50 points. nasdaq 112 points higher. s&p 500 up about 26.5 points. here in paris, intel showing off how the company the a.i. can be applied to analyze data about athletes. thousands of hours of video from a wide range of sports. everything from sprinters to snowboarders. it's scrubbed to build out this technology measuring 22 points on the human bodies and speaks very articulately, shows you, really, what's going on in the world of a.i. take a look at this. >> we're here at the intel a.i. experience where regular folks

like me get to figure out if it helps the athletes and what we'd actually be good at doing a double different experiments. i'm going to go experiment on myself right now. >> this first exercise is high knees running. 15 seconds, high as you can go. [ applause ] go! there you go. very good. >> okay. >> good 15 seconds. it feels a lot longer when watching. get you scanned in here. >> the future technology to test reaction time precision. crucial for any athlete. touch at many sensors as possible before time runs out. ♪ >> there you go. good work. there you go. fast. you got it. you got it. >> all done.

defeated it. >> with this? strength. what we want to do, in a minute grip and squeeze hard as you can. >> okay. >> everything you've got. everything you've got. here we go. >> hold it, hold it, hold it. >> and when it says "go" one big jump, fast as you can. jump, jump, jump! >> nice job. >> okay. very good. well done. so that's upper body strength and lower body power exposures. >> okay. >> brilliant. >> what do i do? >> you're going to run. >> on your mark, get set -- >> okay. here we go. ♪ >> okay. perfect score. rugby player. >> who knew my talent might be a good rugby player's never would have imagined.

guess what? at a rugby game right now. u.s. versus argentina. although i don't think they're going to let me on the field. >> melissa, rugby was not the outcome i was expecting. here's the breakdown, by the way. and i should just say, i was on the b. team on a lot of sports. i playeds but as a b. team guy. know what i mean? high in power and explosiveness apparently indicating a strong ability to tackle and sprint. endurance and agility suggested ability quick maneuvers on the field. quick ones. same a.i. used to, in the past, help train nfl hopefuls entering the draft. i'm not one of them as well as collegiate baseball player. also potential to recruit athletes remotely who would otherwise never get exposure, if you will. so -- i don't know. i think i'm sticking to my day job, although i'm sure others prefer i don't, frankly. >> i actually think that analysis shows your placement as

a "squawk" anchor is appropriate. your ability to tackle? explosiveness. responsiveness. i mean, all that is -- needed here at the nasdaq market site. >> just verbally. verbally. >> yes, verbally. >> yeah. coming up, breaking economic data, jobless claims and more are next. "squawk box" will be right back.

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it's no fuss, no muss. just tons of flavor. the best barbecue beef is only a togo's. try one today. we're just seconds away from initial jobless claims and first look at second quarter productivity. futures indicating a higher open. s&p adding about 29. nasdaq building on yesterday's gains by about 114. notable pre-market movers at this point. apple and amazon each up a percent or so ahead of the after the bell earnings. they will report today. nvidia building on its games higher 3% pre-market after a 13% climb in yesterday's session and meta, of course, standout in terms of earnings reported last night after the bell. that stock up by seven-plus percent pre-market. rick santelli standing by at the cme in chicago. rick, a little early, but interesting the moves seen in the yield curve. saw the ten year reach as low as 4.03% yesterday. i foe you're watching that. seeing a whole shift lower in

the curve. >> yes. we are. fascinating is, it hasn't inverted significantly considering how bullish prices pushed down yields. minus 23. our best close so far in the cycle is minus 14. so we've given up about 8 basis points where's to the market watching rates go down. so bear market, bull market, we see that the yield curve is being pressured. here we go. non-farm productivity second quarter preliminary up 2.3%, well above the under 2% expected. and it really is significantly stronger than the last quarter. the first quarter, last -- it was one year. one year since we had such weak productivity. up 0.2. back to q4 of '23. now, let's look at what's going on with unit labor costs. much he lower. 1.8.

comes in half. 0.9. now, 0.9 is the lowest going back to the last quarter of last year as well. so minus 2.8 was q4 of '23. that was the biggest negative, biggest drop going all the way back to q3 of 2020. this is a pretty good number. now, we see subtle revisions. nothing huge. productivity on the first quarterfinal moves from 0.2 positive up 0.4. almost half of 1% and unit labor costs down from 4% to 3.8. look at claims. shall we? on initial claims, 249,000. that's up 14,000 from at least up to this point unrevised 235,000. 249,000 would be the hottest number going all the way back to august of '23, when it was 258,000. continuing claims, well, let's see. we now have one, two, three, four, five, six, seven. the eighth consecutive week above 1.8 million.

1 million 877,000, to be exact. follows a slightly revised 1 million 844,000. 1 million 877,000 would be the highest level going back to november of '21. so we see once again that we are under pressure with regard to continuing claims moving higher. we see that initial claims, even though a little bit better behaved, is now starting to hover around that 250,000, just below it. that is psychologically significant. and we see productivity. now, these levels are pretty good, but i want to put one thing out there real quick. if you do look at productivity, what you would like to do is compare it to pre-cove ed. here we are up 2.3 in our second quarter preliminary. if you look at the second quarter of 2019, it was 2.6. look at the last quarter of 2019, it was 3.6. so we see we're kind of getting back in that range. 2019 was a good year for productivity.

interest rates continued to move down, melissa lee. we see that the pre-opening equities have firmed up a bit. and we want to pay close attention to that psychological level of 4%. i personally didn't think that we would spend much time under 4%. i will stick with that, but there is a real tailwind based on the seeding of cuts by the federal reserve in yesterday's testimony by the chairman. didn't come out and say it, but he certainly did as tyler mathisen said, tee up the ball for cuts at the next meeting. back to you. >> certainly did. rick, stay with us. for more bring in jpmorgan asset management fixed asset portfolio manager and our own steve liesman. steve, you first. your take on this data? >> can i talk about a link for a minute. an important metaphor to think about, melissa. which is think about a lake and the jobs pool out there. the number of people employed. people coming into the workforce.

hiring. people leaving. that's the firings that go on. an awful lot of that, that goes on all the time. the number friday the net of all the water that came into the lake, all that came out and give you level of the lake and the change. the reason why jobless claims i think may be more important now, and rick was right to point out this new level of 250 is, we learned that the hiring is not happening quite so much anymore. hiring's coming down. at the given level of exit from the lake, 250, 240, it becomes more important, more consequential for the total level. so we need to watch that. jobless claims, not doing hiring this side. number of claims people losing jobs becomes more significant and it looks more and more from that standpoint the fed may be right here and to be making a change. productivity numbers, however, are very good. you want to take them with a grain of salt. notoriously volatile, hard to

measure, revised. think about 2.3 with the 0.4, take a two-quarter average and you're maybe roughly about average here. 1.5, 1.2% on the average of the two. so it's not really all that high, but also not a problem. eav leave it there and say we need to watch the jobless claims more and more if not getting hiringing on the front hide. >> highest since 2023. saying risks to both sisdes, kelsey. watching closely what's happening to the jobs market in regards to the restrictive policy? >> we do need to watch claims because of the way chair powell revised the way he's thinking about the balance of risks. so the balance risks, very, very far skewed to inflation being way too high last year and now

shifted. shifted to the point i think they're actually more concerned about the labor market than they are about inflation. we've been seeing the labor market soften for six months now, and the one piece of data we were missing was the pick-up in layoffs. again, i think that's what the market is reacting to here. that's why when we think about the balance of risk to yields, there may be more risk that yields can move lower from here, because the fed haven't heated, ready to cut the current cycle and actually willing to cut faster if they need to protect the strength of the labor market, which may be faltering. >> in terms of your outlook for the ten-year yield specifically, where is that going and how has that changed from, say, three months ago? i feel you're conveying it's changed, that the risk is much lower than you saw before? >> so we have a view that the ten-year yields by end of the year is probably in a range of around 375 to 4.25.

moved quickly closer to that. and we have been of the opinion a lot of strength we saw in inflation and in growth in the first half of the year was not going to persist, and that ultimately policy was restrictive enough that the fed would get comfortable as the year went on to deliver those rate cuts. >> how does supply of treasuries factor into this forecast? obviously, we have an election coming up. doesn't seem like we're going to have any sort of fiscal responsibility anytime soon, regardless of who's elected. how does that overhang -- >> the supply is an interesting kind of dynamic. i would say generally the business cycle trumps the treasury supply story. right? so if the fed is cutting and we're moving into recession, that's really all that matters. the supply is a secondary factor. i would say where it does play into our view is on the curve. we think the yields curve will

steepen into year end. thereshould be more term premium so the spread between the two year and ten year should be wider and some of that may be a function of expectations around the deficit in the next presidential cycle. >> steve, did you want to get in? is that you? >> yeah. just to point out, you know, it's kind of like powell yesterday, to pick up on what kelsey was saying. put the job market on notice. i am not tolerating any additional weakening there. wagging his finger at them and i thought that was interesting. it did kind of express greater concern than i thought he had. interesting to me, also that he was bit more dovish than the statement i thought itself. the way i put it, you know, or it was put this morning, he said, you know, the statement teed it up, and then -- the fed chair hit it, down the fairway pretty strongly. i don't know what that means for policy here, but i would note, guys, put that january 2025 fed

funds contract up again. that the market is very aggressive here in terms where it sees the fed acting this year and even more aggressive for next year. so there's a lot of cuts built in, and i don't know if that means there's a lot of weakness built in in terms of the economy. >> how many cuts built in in january of this year? half a dozen, i do believe. which goes to show you -- >> three, rick. rick -- rick -- >> beginning of last year. >> yeah. there was -- half a dozen, right. >> half a dozen. my point is, if you continue to, not you particular, but market visionaries, look at the distant months of fed fund futures to extrapolate how many cuts are priced in this far in advance you're not going to be very accurate. >> leave it there. we have breaking news to get to. eamon javers has that. >> good morning. at this hour there is a massive prisoner swap internationally

taking place between the united states, russia and other countries. abc news reports a senior administration official says parties agreed to a prisoner transfer and now in position where they expect prisoners soon to be in u.s. custody. that is prisoners who are americans who are being held in russia. expected soon to be in u.s. custody. of course, russians being held by the united states expected to be part of that transfer back to russia. we are not in position right now, melissa you to report names to you. of who may be involved in this prisoner transfer. of course, highest profiled american held in russia, evan gers sh vich. "wall street journal" held in a russian prison just over a year now. no official word whether he is a part of this transfer but we'll watch for more information as this spills out over the coming minutes and hours. we can report right now, melissa, a massive prisoner transfer is under way between the united states, russia and other countries. back over to you. >> keep us posted.

eamon javers, thank you. >> thank you. meantime, opec officials meeting today to focus on oil output from the group. in america, it's all about natural gas. new data coming out just how we are getting our electricity. brian sullivan joins us with more. >> thank you. folks, renewables growing. good news if looking for cleaner renewable energy. knee renewables go up. reason i'm on television now, united states hit record natural gas use, first four months of the year to make electricity. in other words, never used more natural gas to make electricity for your air conditions, lights, whatever, than anytime in history. than woe are are right now. price of natural gas is low. utilities are like, give me more. lowest cost input. we are seeing yesterday the data

fresh from the eia and federal government, guys, never used more natural gas, renewables, solar wind, they are growing as well. that gas only growing 4% year over year, but that number enough to hit a record. solar up. wind is up. what's the problem? the problem's that hydro fell 20%. people are concerned about nuclear. california, diablo canyon e ext extended. 9% of their daily electricity output. shut it down in a few years, get it from natural gas or solar? big news here, natural gas, a by-product of oil drilling, has never been used more in the first four months of the year to make power. i'm not sure anybody saw that coming. >> brian, before you go, so opec plus meeting of course virtually, my understanding is, right? today? the group did not change current pace of output. still 5.8 million, though, on

the table. what does this all mean? >> yeah. thank you for reminding me there. almost skipped over the whole opec thing. announcement came out. no change in current output cuts, andrew. it was expected. that's what we got. kind of like a smaller virtual meeting. the baby, in-person meeting coming up in vienna. december 1st. the world expects opec to make any change and by the way, this election thing you might have heard about done by early november. we'll see if that could impact opec's thinking. right now, guys, no change to the opec math. totally cutting about 5.8 million barrels a day. reason they can do that, oil's not at $125 a barrel, because the united states had record oil production. about 13.3, 13.2 million barrels per day, u.s. record production. sort of changing opec's thinking. more natural gas. not sure anybody had that on their 2024 bingo card.

not a lot of bragging about it, by the way, from 1600 pennsylvania avenue. where we are. a note on your story coming in. have good news on evan gershkovich. went to a new jersey high school. a lot of family in the area. a lot of people in princeton rooting for evan and his family. could be potentially very, very good news. >> brian sullivan. thank you for helping us through the news this morning. appreciate it. coming up, an amazon second quarter results preview as we near the end of mag seven earnings. heading to break, another look at facebook owner meta. shares higher on earnings and revenue beats. stock up 8.5% pre-market. stay tuned. you're watching "squawk box" on cnbc.

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welcome back to "squawk box." futures now pointing to a higher open, although off the best levels of the morning. just got jobless plclaims.

better productivity numbers ashes a reaction to that. andrew? >> melissa, got news just out on venue. this is the sports streaming venture backed by disney, fox and warner brothers discovery. calling it a skinny bundle, if you will. a lot of people have been waiting to figure out what the pricing will ultimately be. now we know. the plan launches with initial price tag $42.99 per month. expected to debut this fall in conjunction with start of the nfl season. subscribers have access to a number of sports channels, fox sports and tnt and among others. what thisless do to the bundle. whether more people just interested in sports will go to unbundle. also what other bundles attached to it on the other end? for example, will warner want to add cnn to it? disney add other things to it? we'll see what that ultimately brings. $42.99, price tag for now.

undercutting obviously the larger bundles that doesn't have everything in it including, folks, like peacock owned of course by our parent company. speaking of sports, here at the olympics. yesterday at the ambassador's official residence in paris, cnbc hosting a leadership forum. onstage, joe, becky and i spoke with legendary broadcasters al michaels and bob costas. i asked about the deal to use artificial intelligence to listen to every day of olympic results. it's not him. it's his a.i. voice. listen to what he had to say about it. >> in the room call meese up one day. how would you like to make some money and do nothing? [ laughter ] i said, yeah! what do you have in mind? they told me about this and i thought this would be, oh, you know, fun. it wouldn't be -- it's an olympic games. 1% of the coverage of the olympic games. then i wake up one morning, when

the thing is announced and my picture's on the front page of the "wall street journal." what happened here? this was a big deal, and i had no idea that big of a deal. otherwise, i would have renegotiated the deal. but, anyways, it's been a lot of fun. >> have you of fun. >> have you listened to yourself? >> i have, yeah. my wife and i are listening. it's scary in a way. it really is. it's like, oh, that's -- that's almost too good. and i wanted to make sure that -- you know, i don't use a lot of cliches or try not to use any, and they promised me at the end it would be two guys who i trust implicitly in our research area and they will hear it and go, al would not say that, and scrap that. so it made me a lot more comfortable with it. >> okay, so, melissa, are you ready to sign away your voice? what do you think? i mean, this is common. it's all coming for us. i mean, maybe there's a benefit, but who knows? >> this was a major issue when it came to the actors strike and

the strikes in hollywood. what happens to a.i., and what could a studio do with your likeness and your voice? and i think this is really going to come to a forefront as we are talking more and more about a.i. >> do you know if the audience is really watching us live, or is this a.i.? >> that's a existential question. are we really here, andrew? >> are we in a simulation? >> maybe we are. >> we're live for now. >> we are, promise. coming up, what to watch when retail giant amazon reports earnings after the bell. the stock 7% off.

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it's piled high with tender beef that's slow cooked and smothered in tangy memphis style barbecue sauce. it's no fuss, no muss. just tons of flavor. the best barbecue beef is only a togo's. try one today. welcome back to "squawk box." amazon set to report quarterly results after the bell today. shares are trading around $190 right now. our next guest has a price target of 2$210. i want to bring in senior analyst covering internet and capital markets at roth capital markets. what are we looking forthis afternoon? what's the big takeaway that you need to hear to get your price to hit the target? >> thanks for having me. i think the bar is high for amazon and all the megacaps, i think, heading into q2. i feel there are three things we're looking for.

one is cloud growth acceleration. the high teens growth is what would hold the stock here and push it higher. second is retail profitability. they have been ramping that up and we expect that to ramp up as well, and third is all the surface areas that they can do to improve using gen a.i. as in we are hearing some of those things in the cloud, in advertising, but if you haven't heard much on retail, so that's the third narrative, but the first two points are cloud acceleration and second is retail profitability. >> is there any takeaway from the meta earnings yesterday that you think has any implication for an amazon? >> there's two takeaways, in my opinion. one is the ad market is strong, e-commerce retail is strong, and chinese e-commerce advertisers are continuing to spend on the u.s. market. so, those -- there's a check box from a macrostandpoint that,

yes, amazon should have a pretty good macro backdrop as far as e-commerce and retail is concerned. the second is investments in a.i. i think the way zuckerberg is getting very aggressive with a.i. spend with the capital expenditure on a.i., you know, buying gpus, i think there's no other company other than amazon that is set up to succeed in a.i. on the cloud and will have the need to spend more. so, i think how much is amazon willing to spend? we know amazon is never scared to spend any amount of money, be it building rockets to the moon or whatnot. that was a joke, by the way. but that's the second biggest kind of concern that could hold back the stock if we suddenly realize that we are in a big spend pattern. >> i was going to say, it's not really a joke because they're trying to do something very similar, but on the a.i. front, we're also talking about the success of llama, which is open

source. of course, amazon has a big investment in anthropic, and they're competing against openai with its partnership with microsoft. and apparently are developing their own closed model themselves. do you want them investing in it, or do you think they have to? one of them may be the lessons, you look at apple stock. they may just partner, and that may work even better for them. >> i think amazon has been -- was caught a little bit flat-footed when it came to developing their own frontier models, so -- but at the end of the day, the strategy that they're conveying to the street is very clear. they don't believe that there's not going to be one or a small set of models that is going to rule or have use cases that would absolutely go on all of enterprise i.t. spend in the next five years, so they're creating almost like a bedrock, which is the name of the product, but essentially, a place for everybody to access those models.

so, that's what the strategy is, so perhaps a couple years from now, that strategy may play in their favor. >> okay. rohit, we want to leave it there. we will be watching when the market closes and the earnings start streaming across. of course, another couple of other big names, including apple coming out after the close as well today, melissa. >> we do want to check on shares of eli lilly, up by about 4% premarket. this after late stage trial data showed its weight loss drug, zepbound, reduces the risk of a common type of heart failure for adults with obesity. it cut negative outcomes by 38% versus a placebo. another use case for this amazing class of drugs that has captured investors' attention. it's sort of the a.i. of pharma. >> i've been saying it. whether you think you need it or not, we're all going to be taking it in the end. forget about the piece of it, but i think the weight piece is what's impacting all these other

pieces. it's a game-changer. >> there have also been studies regarding cravings. there was a retrospective study released yesterday saying it's cut down, when you study people who have been taking glp-1s, their propensity to smoke is less, which indicates that there should be actual clinical studies doing this. this is a retrospective study, so they look back on people take igt, but the indications are really promising. >> i'm just trying to work on my cravings of these chocolate croissants they have all around here. we had ham and cheese. the food everywhere. >> i saw you down that baguette. it was unbelievable. if only we had a picture. >> probably shouldn't show that on tv. we're going to have a creperie tour tomorrow where we rate the crepes, 1 to 10, with decimals, sort of like a guy you may know but a little bit differently. and it's going to be fun.

if you're into that kind of thing, watching people eat on tv. it's never attractive, though, melissa. >> yeah, as a female, i try not to do that at all. i'm glad you did it, though. >> let's just mention real quick, dow jones looks like it's up about 82 points. nasdaq up about 86 points now. melissa, thank you for hanging out with us cross-atlantic here this morning. becky and joe are going to be back tomorrow. i'll still be here in paris at the olympics. make sure you join us. going to have the big jobs number. "squawk on the street" begins right now. ♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. futures are solid coming off the best session for s&p nasdaq since february. ten-year, awfully close to 4% as jobless claims come in highest in a year. our road map begins with meta's big beat. stock is surging on its latest results. revenue up