justice eno enough time to the futures before we got to hand it over to "squawk on the street." the jobless claims turned higher after a good number for jobless claims. not too bad. i will see you soon at some point in the future. make sure you join us tomorrow. "squawk on the street" is next. ♪ good thursday morning, and welcome to "squawk on the street," i'm david faber with jim cramer live from post nine at the new york stock exchange. carl quintanilla is at the olympics in paris. let's give you a look at futures. we're setting up for a higher open. not sure that means much, of course, if you followed yesterday. we looked like we were set up for a higher open but not a higher close. and let's start with our road map this morning. not on the markets but on what's

affecting them, namely the odds of a u.s. recession. jpmorgan citing easing labor market pressures as it raises those odds. plus eli lilly, the biggest gainer on the s&p premarket, it blew past earnings estimates, hiked its guidance on strong sales of what, everybody? come on. of course, it's weight loss drugs. and shares of warner bros. discovery tumbling on its latest results, included a $9 billion writedown. it's a goodwill impairment charge, noncash. >> noncash. >> tv networks. it's not a great business to be in, but here we are, a tv network. and we like to talk about the markets here. hopefully you still watch us and pay for your cable bill for doing that. we got a lot of volatility. major indexes coming off their fourth negative session in five, and jim, i did reference yesterday, we can watch it tick by tick there, looked like we had a nice start. when you left at 10:00, things looked fine. >> it was a beautiful day. >> trying to get an answer to

what happened. as usual, nobody knows anything. what do i got here? it's a reduced risk market instead of a buy the dip market. the vix is still higher. it's august. there was a ten-year retracement, repricing risk, waiting for the nvidia print. we're in a holding pattern. i don't know. what do you got? >> wow. what a pile of -- okay. let's look -- >> what a pile of what? >> let's deal with reality. yesterday was a day, i think, defined by the stock because things looked good, very good, and then you peel the onion and find that things are not that good. and you keep coming back to this -- >> we knew that first thing yesterday morning, i will say. sorry. >> we're well ahead of the game. >> we're ahead of the game? >> we're at warp speed to use a program that i know you liked. what i'm saying is that when you go back over, anybody that took a big price increase or many price increases, people are done. they're not going. the consumer is choosey.

the consumer has been empowered, and the consumer goes where they want to go. consumer likes convenience, hence doordash and uber. the consumer doesn't like anybody who raised price and raised price and raised price. the consumer likes costco and walmart, doesn't like general retail. the consumer is being revealed, david, as someone who's canny and done with the companies that took advantage of covid, raised price, complained supply chain, claimed whatever. david, when you price rollback, if you want to get the consumer in. carvana said that, by the way. >> it's an interesting take, but what does that have to do with yesterday's moves and what it means for today? >> that's the take. >> that's the take? >> yeah. that's the take. >> i'll extrapolate. >> interesting is such a negative term. >> and therefore, odds of recession are strengthening, and so -- >> you asked me on the -- >> why did the yields go up, then? >> well, the yields are just -- look, these auctions aren't that

good or maybe the jobless claims. forget the yields. it's all within a little bit. it's just niggling. you have companies that are totally out of sync and they're not in trouble but they're doing really trouble. and you reference warner bros. discovery. it's not doing well, okay? we have companies like a hub spot that alphabet was going to buy. not doing well. we have today, david, i have something that i think you would love, which is a downgrade of intel. ? >> really? just piling on. you can't help yourself. >> that was meant to be a joke. >> usually i get your jokes, except when they're not funny. theni don't get them. >> can i start over? you're interrupting my thoughts. >> wait a second. it's role reversal. >> this is what defines this market. jpmorgan, gradualism under pressure, activity data, and

it's the percentage of people and them thinking that there's going to be a recession. they're saying 35%. leslie picker's interview, our own leslie picker -- >> she's ours. >> she's been borrowed by the japanese -- she's ours -- did an interview yesterday with jamie dimon, which i thought was one of the most calming, terrific interviews but then we come up with this jpmorgan piece that says 35%, and this is the game, david. the game is to guess and place odds on a recession. that's what we're really doing. that's what's worrisome. they keep going up in these pieces. >> i know, but they always get it wrong. they got it wrong in 2022. bob pisani will tell you over and over again. so will steve liesman. >> i'm opportunistic. >> everybody was calling recession in '23, and it never happened. >> you're right. >> okay. should we end the show? i'd like to end right there. >> i do have to go. i have to speak to someone about

some of these lawsuits that are going on in tech. no, all i'm saying is what's defining the market right now is this game. and is it the consumer -- is the consumer weaker? >> there are signs of it, and you can find it where you want it. >> top golf, you can find it. you can find it in the strangest places. but a lot of the consumer weakness is travel. it's travel. >> can i find it in dutch bros? >> i have dutch bros on tonight. >> look at that. >> i read the conference call a couple times. i owned a restaurant. i own two restaurants. i have been in the -- my daughter was a barista. i followed the career very much. i know this game. i know dutch bros from oregon. i did not understand a single wo word they said on that call. i took a year of accounting. that call, and i hope they don't -- i don't want them to cancel because they need to explain -- but that call was one of those calls that i just didn't understand. they're being more promotional.

they're not taking price, and they refuse to acknowledge that same store sales are going to go up or be flat. they wouldn't give you any forecast beyond next week, and it was a distant call for a company that i have championed for ages. >> i want to come to a company that you have also championed. >> i thought it was a good analysis. >> it was a good analysis, i enjoyed it. >> you picked a stock and i had the answer. give me some credit. name me a stock. >> let's talk about eli lilly. >> david ricks came on. first inning. someone the other day -- did you see the other day, someone came in and said, i'm not going to use a baseball analogy? are you kidding me? that's the only thing we have. first inning. this was a remarkable quarter, and hidden in his -- if you go deep underneath in the interview, he does have a pill. it could be soon. he's willing to cannibalize if the pill is better than the injectable. he does have something that can be injected less than is

currently injected but what he really has, david, is a mote. you can't make as many drugs as other guys because he's spending a fortune. now, let me give you a little secret. come over here. >> please, yes, jim. >> it works better than wegovy. >> thank you. thank you. jim said it works better than wegovy, for all of you -- >> wegovy drops the weight 15 to 20%. >> and these go as much as 22%? >> it's just very solid. ricks is so nonpromotional. it drives me -- why can't he be like everybody else? >> ricks was on "squawk box," and the ceo of eli lilly discussed the demand for the drug that has taken the country by storm. take a listen. >> we just see unbelievable demand, and we're not even trying that hard to promote this drug. we're not advertising -- we told our sales reps to just service customers, don't promote, and what you're seeing is just consumer, organic demand here as

we've shipped more product as we bring more supply online in the united states. >> and having gone to dinner with a few people on the drug, they don't eat. they sit there and leave half their meal. it's very annoying. >> you're focused on weight. >> especially when i'm paying the check. eat! >> you pay the check? where'd you go? you go to that mexican place? >> i haven't taken you out in a long time. >> i always pick it up for you. >> no, you do not. actually, well -- >> i'm going to talk substantively for a second. buried in all this are new studies they're working on, study for nonalcoholic but can be used for alcoholic. there are going to be moany new studies, the hypertension study, the congestive heart failure study, and all this is leading up to the fact that medicare is going to have to pay. i had cvs on last night, but they're all going to have to pay. >> ultimately, the health risks

associated with being fat are very high and that would seem to be a benefit longer term for the insurers. >> they'll be able to prove to you that you should pay because you'll be out of pocket longer term for far less. >> wonder drug -- of the drugs we've seen during the last 40 years -- >> penicillin and this one, man. >> penicillin still works. >> holds up. penicillin holds up. like mickey and minnie. they hold up and penicillin. oh. let's over to carl. i'll tell you what holds up. the olympics. as carl well knows, i'm just glued to the tv set. i love it. he's in paris. got the latest for us, carl. >> it was a great night of coverage last night, david, and it will be another exciting day today. if you're looking for a viral image today, you might well go with quincy hall after winning the 400 meter last night. interestingly, he went into the last hundred meters out of all the medal positions, but then he turns on the gas to win, the

first u.s. man to do it since lesean merit in 2008. he actually made his early career -- i love this part -- in the hurdles, but he switched to the 400 last year, a decision he said last night that changed his life. >> just grind, determination. like i said, a lot of -- we do a lot of hard practices and we focus on coming home at the end of each practice so that was nothing more than just me trying to go hard. >> there was some heartache last night, guys. for the first time since beach volleyball became an olympic sport in 1996, the u.s. will not medal. andy and miles did lose to qatar 2-0. they were the last remaining u.s. pair. so, that's a bit of a down note. but on an up note today, little bit of history, guys. 32 years ago today, the dream team, remember them? won gold in barcelona. that was the first olympic game

where the pros could play. they won by an average of 43 points a game. they never took a single time-out, and david, i was looking at the roster, if you don't remember, jordan, pippen, ewing, bird, stockton, malone, barkley, magic. just an unbelievable day 32 years ago today. >> incredible. i do remember. i remember it well. christian laettner being part of -- was he in college still? and of course, there's that steeplechase, carl. you can never forget that steeplechase, watching that american come out of nowhere. >> you are obsessed. >> nobody knew who he was. when he finished in the silver, he kept looking for somebody to say, hey, great job, and nobody would even talk to him. >> david, you've got to do one of these games because you're really good at focusing in on events that don't always get the love, if you know what i mean. >> i do. i do. and i agree. yeah. some of -- it's amazing to watch, in particular, some of

these unexpected victories in some of the races have been amazing. just -- and really emotional. >> i think tahiti was my favorite, still. >> surfing? >> the camera people -- every singl single time, carl, they almost got killed. the surfboard, they didn't care about the camera people. that's why it was such great coverage. >> we've been talking a lot about that particular -- the crews who cover the tahiti coverage must be living an incredible life because as you said, it's not easy to shoot, but then again, you're in tahiti. >> well, you're in paris, so that's not bad either. >> yeah. >> no, exactly. >> just unbelievable coverage, carl. amazing. >> we'll be checking back in with carl later. >> carl is tweeting unbelievably good stuff about recession/no recession. that was a fabulous retweet, carl. >> the evercore note? >> i thought that was one of the most important things this morning, kind of got the

zeitgeist correctly. >> it's nice when you wake up at 2:00 a.m. u.s. time, you can read all the notes. >> that's what i do. >> carl, as they like to say, is a great follow. >> he's the best follow. anybody's birthday today, carl? >> he's always got really helpful commentary and things of that nature. >> just so you know, every time carl does anything that is -- pop, i immediately call my wife, and she thinks i'm so with it, it is fabulous. thank you, carl. >> it's carl appreciation day here. we can't wait for him to actually get back either, but he's got another full day of coverage from the olympics. >> his coverage is so great. i know versus, say, the political discourse of our country right now, which do you prefer, the discourse or the olympics? >> it is a nice thing to get away from that and watch paris. >> isn't it? >> keep an eye on shares of warner bros. discovery. by the way, they're -- they air the olympics in europe. not helping the stock right now. we'll tell you why and check out

futures. we are headed far what appears to be a higher open. don't want to say much more than that. (♪♪) car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

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all for just $15 a month. get the fastest connection to paris with xfinity. two-plus years after launching our company, we are still in the midst of a long-term transition marked by many notable progress points, as well as some tough challenges. our direct to consumer business is doing very, very well. we see a tremendous amount of upside. at the same time, there are tough conditions in the legacy business. >> that was warner bros. discovery ceo david zaslav on the earnings call last night. shares are down about 10% in the premarket. it was a $9 billion writedown on its tv networks that certainly got people's attention. that's a goodwill impairment, essentially, although estimates on sales, i think, were missed. it's a rare day you can say that at&t may have done a good deal.

>> yeah. >> take a look at the three-year. can we go back to that? that's what i was looking for. yeah. it looks like maybe at&t did do a good deal. it was 35 bucks. that is warner bros. discovery stock when this deal was announced, of course, to merge the warner brothers assets with discovery. it was a $25 stock when the deal closed. it's now below $7. it's not surprising that you would write down the value of the assets of the linear tv assets given that decline in your stock price as well. it's sort of -- people would be wondering, what are you doing? where do you have those things marked? on the call, the cfo discussed the fact that the nba rights may have been a triggering event. you know, you have a certain cushion, and then when you make assumptions based on the fact that, all right, tnt may not have the nba, what are our sub fees going to be? what is it worth? and you then -- they would have had an impairment charge regardless but he did indicate

on the call, perhaps, that was the triggering event. he said, this is clearly where a discussion comes into play and compels us to re-evaluate our business case and strategic planning process with the latest assumptions and the best view of where the industry's going." where the industry is going, jim, is linear networks continue to decline at a rapid rate, far faster than many had anticipated even a couple years ago and it's all about the direct to consumer business, which, by the way, to defend warner bros. discovery, if they can get this done, they're over 100 million subs, they're doing run rate of a billion in ebitda for max, you know, next year, they're accelerating sub growth. that's where they're going to focus people. >> i think that's right. i think if you remember, jeff used to talk about how they're not really much in international, and i think that dave zaslav correctly is going for scale, which includes a lot of positive things about europe. that was great. around the world. david, here's -- i want to take their side for a second. >> sure. >> look, it's absolutely true, you said distribution revenue

has decreased 8%. network ad revenue is down. cash flow is down $750 million down to $1 billion. but when i looked at their corporate bonds, david, not getting hit. >> no. i mean, you know, again, right, total adjusted ebitda, $1.8 billion. they did have cash from active -- decreasing to $1.2 billion. free cash flow of a billion. >> that was great. >> they have a maturity schedule that's quite favorable in terms of when the maturities come off. >> they did that well. >> that said, what's going to get this stock moving in the right direction? >> well, it has to be max in a breakout, and he did talk about max in a very positive way. he spent most of the call talking about max, and even just like european olympics and -- >> the studio is also suffering. there's a lot of cross currents there. a lot of, you know, sort of structural changes are taking place. they have been spending a lot, and the movies have not been doing that well. >> it's funny because where they're really doing well is in -- like they do "presumed innocent" for apple plus, which tim cook loved very much, and

what bothers me here is that the common stock is indicating things that are far worse than the corporate bonds. but usually, the bondholders are smarter than the common stockholders. >> i'm going to talk more about it after the bell when we can get back to it just in terms of, would there really be any activism? what about the possible split of the company? there's a few things that should be mentioned as well. but we got a "mad dash" with jim. he's going to get ready for that and we have an opening bell coming up. take a look at futures. we are set up for a higher open when "squawk on the street" comes right back.

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mm-hmm. ya, he's super nice. we got an opening bell five minutes from now. eli lilly powering higher on the strength, of course, of its glp-1s. you can see parker hannifin and cf. >> oh, fantastic. >> you can catch us any time, anywhere, by the way, if you listen to and follow the "squawk on the street: opening bell" podcast.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. let's get to a "mad dash." opening bell a minute and a half from now. robinhood? >> now, lilly is overshadowing everything else, but people have to take a hard look at robinhood, because this stock will be up more thanit currently is, and i say that

because amazingly, vlad tenev is doing everything that every other brokerage house wants to do. they're doing all kinds of crazy things which are helping i.r.a.s. they have a.i. that's going to offer investment advice. i don't like that, but people buy into it. and best of all, david, these guys, they'll do any sort of crypto you want. >> okay. >> so, people take options on crypto. they do everything. if you look on our tag, you'll see this little thing called solano. >> yeah. >> solano. we'll run that all day. it's supposed to say lilly, and i'm like, will you please -- i mean, what do we know? why don't we just run dog fish? but they trade everything. and people love it. and they do say that people, they have a huge option business and a huge crypto business and a lot of these brokers that are trying to get younger people, they should just copy these guys, but do it in a more

dignified fashion. this is the blueprint about how to get younger people, and the other guys just don't know how to do it. it's right here. just appropriate it, for darn's sake. >> all right. >> there. >> there's the opening bell. take a look at our realtime exchange. back at headquarters. here at the big board, goldman-sachs celebrating small cap equity etf. over at the nasdaq, abacus life celebrating its acquisition of fcf advisors. we hit lilly, we hit a couple of the other earnings movers. i'm going to give you your choice here of what you were -- where you would like to start. >> okay, i'm sticking with this younger people analysis and it looks like they don't know what the heck they're doing. first, we can go to bumble, and bumble is bumbling. >> bumble is bumbling. you're starting with a billion dollar market cap company? really? >> celsius, which is energy drink, and monster, which, by

the way, is the best performer from 1990 to the present, not tech, david, the bloom is off the rose or whatever you want to say on the energy drink. >> okay. >> the cohort. and they can't reignite it. celsius has the biggest percentage gain of anybody, but you know what? david, there's something that is awry here with the energy drinks, and no one seems to know exactly what it is. >> what's going on? >> i'm going to ask -- >> as usual, nobody knows. >> i think one person knows. jim fitterling. >> from dow chemical? >> these things are filled with chemicals. even though people claim they're natural. i'm going to go to fitterling. >> what's going on with monster? >> really bad numbers. >> down sharply on numbers that were not -- >> the numbers were light. >> this is a $50 billion market value company, roughly. >> what people are saying is that this category, which has been great for so long, has lost its luster. and everyone's trying to figure

out exactly why, given the fact that, you know, people are supposed to want the energy and pep and like the taste of it, and this is, in that case, i'm thinking celsius, but these have been tremendous marketing successes, and it's like the -- it's like dog food. the dogs won't eat it. you can write new, improved on the can, but the dogs won't -- >> did you see the ceo last night? >> total denial. >> the river in egypt? ty n >> not only is it great, it's better than you think. too w do we have a clip of him popping open a celsius? that wasn't fair. you've got the best house in what increasingly people are thinking is a bad neighborhood. does the neighborhood have to get better for your stock to fly? >> well, jim, you just -- we just broke record revenues, $400 million in revenue,

$100 million in ebitda, best quarter in company history. we were a little bit somber, talking about the consumer, saw the category decrease for the first time since 2020 on a weekly read. it was growing strong in the beginning of the year. but the reality of it is, jim, the sugar-free category continues to be the growth driver in energy category, and celsius is the category driver of growth. >> all right, so, he wasn't breaking off his talking points. >> no. and that, in the end, is not unlike dutch bros. you want -- you want the people to be much more like karen lynch from cvs. she says, i know we have problems, i've made it so that i'm in charge of a particular area that's a problem. it's on me if it doesn't do well, and i thought she -- even though i know this is a very challenged company, she owns the issues. and says she's going to take care of it. these guys don't want to own the issues. they think everything is going to be fine and we're just going to go right back to the way we

were. since we don't know why it went done, maybe energy drinks come back. >> i'm not a user, i don't know people who are, so i have no insight whatsoever, which is not unusual for me, of course. >> we always have a palette of celsius up in the office. people drink it. the watermelon is the one they like. he is upbeat, and they have those revenues, but the category is hated. the category is not muted by glp-1s. those actually are something that the research says people drink. >> there's the ten-year treasury, jim, above 4%. let's not forget where we started this week. >> no, no, this is an -- >> again, because of our lovely charts. it's very hard to tell. >> this is an amazing, amazing week. >> we were at 3.65%, something like that, on monday. >> amazing week. and you know, we are finding that what people -- day-to-day, people don't know what to do. for instance, david, you know treks? treks, they both make this kind of faux wood.

one, i think, is better run than the other. asic reports an amazing quarter. stock goes up. trex reports a terrible quarter. terrible. two companies in the same industry. it makes it really hard to figure out what to do when you have two companies -- isn't it much better when it's the media and you know everything's awful? >> to your point, although warner bros. discovery not down as much as it was in the premarket -- i do want to come to disney day two, because i will -- i'm going to say here, now, you saw some positive things yesterday in the report, but i heard you more positive on the stock than you have been in some time and i did make the point that parks have become such a large percentage of the overall income at the company that if operating income is not trending higher, it's a tough road. >> you made no money in ten years. >> it's following through on the downside from yesterday as well. >> i thought it wouldn't. the reason i thought it wouldn't is because you can change the theme park. you lower prices. >> ultimately, to your point, these theme parks have been

around -- i mean, you know? they're going to be fine. >> it was disney plus that i was worried about, and it was espn. >> had a great quarter. >> espn, which was really good advertising, up 17%. but the theme parks are fixable. >> yeah. >> and i don't -- you know greg? >> greg? >> remember, he spent that day -- >> from "succession"? >> i would put him in there before i would do whatever anybody's doing. i'm not talking about tom. tom would take it so that it could reverse entirely. but greg could do a better job. greg. because the polynesian is 650 and the cosmo was 550 and the tickets more than a hundred dollars. as far as i'm concerned, greg -- greg -- greg would be better. and tom would be a coup. >> it's not cheap to go to an amusement park, whether it be disney's or others. >> that's why i think they have to -- no one wants to cut prices. >> cutting prices?

that's heresy. >> just hit me. no one wants to cut price except for two companies. >> tell me who. >> walmart and costco. hit those companies up, and you will see stocks that they are kings, david. they be kings, and the reason why? >> because they can. >> balance sheet bargains. >> that's why. they can afford to do it. >> that's what people want. >> they can afford to cut prices. >> by the way, if you want to buy gold at costco, good luck. >> it's a good call. look at those stocks. >> richard galanti, the cfo, he's retiring, they -- >> you still talk about him. >> because he committed to rolling back prices, and then doug mcmillon, 5,000 items rolled back prices. i cannot believe how i bought a dicky jacket for 27 bucks, david. i saw it for $60. now, amazon did cut prices up to 50% on prime day. >> prime day was a good deal. >> but they've lost it. oh, they've lost it.

>> you're being sarcastic. >> jassy has taken a permanent intellectual vacation, give me a break. he's sharp as a tack. walmart. that's business. >> i want to talk more about glp-1s because we haven't given it our allotted time on the show, in particular on a day when lilly reports numbers and the stock is up 10%. >> the other drugs were good too. it is coming in, though. >> performance yesterday with wegovy. >> novo said -- what people don't realize is that the competition is doing better than they are. >> lilly is crushing it. >> ricks also realized -- >> look at that. >> use your balance sheet. balance sheet, by the way, is something i keep coming back with. >> separated itself from everybody else in the pharmaceutical industry. it's incredible. >> six factories. >> there was a time when it was an also-ran and now it's above $800 billion again in market value. >> kenny said it's going to go to a trill, first drug company going to a trillion. >> it would seem like that's a real possibility, wouldn't it,

jim? >> yes, because we just keep discovering things. you said something very interesting. >> i did? >> one of many things. remember how you said that people don't go out? >> they don't go out to restaurants as often. >> now, think about this. >> that was -- listen, i'm hearing anecdotal credit card data that somehow they identify people who are on glp-1s and see that they're not going out as often. they're not drinking as much, and i said this as well. we talked about. they're not gambling as much. >> this may be a, also, lifestyle drug because those are all vices. they're not going to do a study for that, and they won't do a study for alcoholism because there's a very powerful lobby that keeps that from happening, and they say that because there's a lot of different comorbidities. but the fact is, david, this suppresses the bad instincts. >> all your appetites. i don't know about -- most of them. >> people are going to say, you know what? this is good for your mental health. mental health. >> it certainly could be. >> alcohol is not -- alcohol may be the single worst thing for

you. >> mr. ricks saying such positive things about the fact that we don't even need to advertise. they just come to us. >> they just made it so you can get it. i mean, they finally reached -- >> wegovy's advertising. i've seen those ads during the olympics. >> they better advertise. the one drug is superior to the other. >> you keep saying that. all right. >> i study it a lot. >> there's still 15%. >> lilly's stock has been, believe it or not, a bellwether of tech. >> i know. remember when we had the big rotation going on from the megacaps, so to speak, which typically we think of as pure tech, into the russell. lilly was getting hit as badly as anyone >> it was. and at one point, nvidia was down 35 cents when lilly reported. immed immediately, the stock went up a dollar. you know nvidia is the most hated stock on earth right now, included by jonathan kanter. >> are we in a holding pattern

until we hear from nvidia, which is a few weeks away from terms of its earnings? >> yeah, we are. the question is, is blackwell really late? can they make it up with the h-100, h-200 and then use cases? you go back to the tesla call. people hated the tesla call because they thought that elon was downbeat and elon didn't talk about vehicles, but elon did spend a huge amount of time talking about robots, and robots are run on this company's products. you can't do good robots without jensen. and they're just doing video, and jensen will be able to explain to you the use cases. >> right. >> and that's what's really hurting it is that people don't think there's any more use cases. other than servicenow, no one's been able to say, you know what? a.i. is real good for us. >> well, palantir yesterday, we felt like had -- >> palantir did, that's absolutely right. palantir had really good discussions about a.i., and there are a lot of companies that actually use it, and they say that productivity is -- each

person does twice the work, but that, of course, means that you can hire half the people. it's a lot of private companies that do really well. accounts. law firms. they're the use case where they're paying people -- really expensive people they don't need anymore. >> more follow palantir after that move-up on earnings. jim, wouldn't mind coming back to the banks. jamie dimon, as you mentioned, was a guest of our own leslie picker yesterday. the bank's moving up with rates. it seems as though that's what's been happening. they've been whipsawed lately. >> desperate to find a correlation with anything. what they ought to correlate with is the consumer and whether there's going to be a problem with credit. >> we seem to be whipsawing -- >> did you use that bogus hedge fund term? did you try to confuse our viewers like everybody else? how dare you. that's a made-up term. >> so many made-up terms. there's so many. my favorite? drawdown. >> oh, yeah, drawdown.

is that better than carry trade? >> like, we had nothing to do with it, it was a drawdown. >> these are things -- look, i was in management for 14 years. i like english. it's a first language and i use it, and i'm not trying to confuse our viewers. risk on, risk off, that's called meaningless. what they're really saying is, i'm about to lose a lot of money because i own stocks, and i wish i was going to use it but i own a lot. >> that's a different psychology than, i don't own enough stocks and i got to own more because i feel good. >> if we use english, our viewers are well served. if we use wall street hedge fund speak, just forget about it. >> it's designed to confuse. you're absolutely right. >> it is. like it's a special language because we're really smart. >> i followed this for so long. used to be the obl guys, then they became the financial sponsors. we'll sponsor you financially. >> i met someone that said they were in private credit. i said, shut up. shut up, private credit.

you don't know the difference between a stock and a bond. >> it's huge, private credit. >> i took out my sapphire card and said i was in private credit. >> goldman-sachs is trying to get bigger and bigger in private credit. >> good. actually, look, solomon's done a good job. remember they used to knock solomon? turns out he's the winner. >> you're not talking about solomon from the bible. you're talking about david solomon. just making sure here. >> i'm an old testament guy. i totally get that. >> you are. i know. you totally are. >> but i am not -- >> you're not -- just wanted to make sure you weren't going there. >> an eye for an eye is not a universal precept. i just think he's done a really good job, and by the way, thickest skin i've ever seen. >> he needed to have a thick skin. >> another guy i go to fitterling on. plastic skin >> you keepcoming back to fitterling. >> i like jim and it's not -- jim would say, david, it's not dow chemical. it's dow.

>> it's dow. by the way, that does get us to some of the industrials. we saw -- well, cf is more -- >> the one to watch. the best country is cummings. jennifer rumsy is so good. it's going to hit its new high. that's about power and engines, and rumsy, untold best industrialist in this country right now. jim appleby, no offense. your hair looks fine. >> does it? i don't know. >> you're playing with your damn hair. i'm talking about cummins. >> i saw a couple strands out of place, i wanted to look good for everybody, you in particular. >> that's why i wear my hair like i do. when you have cummins do well and parker hannifin and clowns saying there's a 35% chance for recession, these are the companies that will determine whether there's a recession, and their orders are fabulous, and their earnings are great. i mean, parker hannifin is $13 away from being at an all-time high. it is cleveland's turn.

>> cleveland's turn? >> cleveland's turn. >> good for cleveland. >> it was good. >> cleveland's great. >> they got a new stadium coming. >> ask lebron james. he loves cleveland. >> new stadium, $2 billion stadium coming. cleveland. we should do the show from cleveland. why don't we ever do the show from somewhere else? >> we used to. >> why do you and i sit here? >> i don't know. >> why don't we just wake up in cleveland and do a damn show? >> i would love to do a show from somewhere else. i don't think these days -- >> these are -- oh, because of cable? >> we got to pay for that nba contract, my friend. they may take the desk away entirely. >> would that save $35? >> whatever it does. >> if that saves $35, we should do it. >> whatever we need to do to pay for the nba. speaking of the nba, warner bros. discovery is suing the nba, remember that coverage, of course, the stock is dow down 11%. i wanted to come back to this, jim, because we talked about the quarter there. there's always these rumblings, could there be an activist? >> talk about who david zaslav is. if anyone's going to solve it,

it's zaslav of we got a bad hand. >> without a doubt. it was a tough hand. and the deterioration of linear networks has been -- >> nothing short of breathtaking. >> has been more difficult and quicker than many had even anticipated who were expecting it to be bad. >> have you seen any industry have this kind of fast grind? not slow grind anymore, high single-digit, also known as to the people that we're trying to confuse, hsd. >> let me -- but let me just address this. on the activist thing, it's like, what would the plan be? >> the activist? >> if you got an activist in the stock, what would you do? you would say, well, remember a few weeks back, split the company, linear networks, obviously, but it's very difficult to do. you'd want -- the bankers i've spoken to, have investment grade, given the ebitda declines. the bondholders, even though they may not have that many covenants, they may have an opportunity to say, no way. i don't believe that's necessarily a road they can go down. what does it become?

i guess it becomes a change in management. >> david zaslav has thought of everything you could possibly do and i think short of the great man, the great american coming back, i can't think of anyone who's doing a better job. >> the question is also if, in fact, who would replace him. >> who? he's got the international -- >> i mention it because it comes up a lot. that's all. i wanted to get back to that and finish that. >> look, i'll play my cards. i happen to like david zaslav. >> of course. i've known him for 30 years. >> we both have, and we want to pull for him. he is in our business. >> it's been a rough go, man. 35 when the deal was announced, 25 when it was closed and the stock today is $6.80. >> man has pride. >> it's hard. it's hard fighting a win when it's coming at you at a hundred miles an hour. >> disney's stock has gone from $123 to $80. it's like a land speed record. it should be in the olympics. >> yeah.

>> it's the minus 100 meters. >> all right, let's get to the bond market. i don't know what he's doing there. we showed you the ten-year eclipsing 4%. let's see if we're maintaining that territory. it's been quite a week. there we are. a bit below at 3.99%. the two-year yet again above that 4% yield. we'll be right back. (aaron) i own a lot of businesses... so i wear a lot of hats. my restaurants, my tattoo shop... and i also have a non-profit. but no matter what business i'm in... my network and my tech need to keep up. thank you, verizon business. (kevin) now our businesses get fast and reliable internet from the same network that powers our phones. (woman) all with the security features we need.

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that includes dutch bros. >> we have to clarify why that stock is down 28%. it's one of the great growth stocks of our era. i'm glad christine is coming on and we can break down the call and why people felt it was a bad call. >> what was the problem. >> >> they wouldn't give you a forecast. they indicated somehow things are not good. the first half of the conference call is how things are great and the forecast in the future were a mystery to me, very opaque call. very disappointing call. i was. >> we've talked about it a lot and -- >> it's a great product -- >> we had fun about the idea dutch bros want to be careful when they come to the neighborhood. >> the annihilator. that's what i take. i get up at 1 and get-go to bed at 12:30. i once set a wake-up call for one hour. it was 2:00. 1:00 when it was west coast. wake up that's happened and i

couldn't go to sleep. that's how i feel about dutch bros. but it's positive. >> look forward to that interview on "mad money." >> head and shoulders knees and toes. >> we'll take a break, jim. you do the same. >> i don't want to go. >> plusmuttering to himself. we're not going to listeann y more. >> they help -- >> 1%. we're back after this. both medicare and medicaid, i have some really encouraging news that you'll definitely want to hear. depending on the plans available in your area, you may be eligible to get extra benefits with a humana medicare advantage dual-eligible special needs plan. all these plans include a healthy options allowance. a monthly allowance to help pay for eligible groceries, utilities, rent, and over-the-counter items like vitamins, pain relievers, first-aid supplies and more. the healthy options allowance is loaded onto a prepaid card each month. and whatever you don't spend, carries over from each

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good thursday morning. welcome to another hour of "squawk on the street." i'm david faber and morgan brennan, live at post nine of the new york stock exchange alongside carl quintanilla live from paris this hour. he has the latest from the olympics. sara has the morning off. a look at the markets. we are still ahead on all the major averages. don't read too much into it. we were looking the same yesterday this time and things turned around quite a bit, morgan. >> we'll be watching it through the session.

30 minutes into the trading session, here are three movers we're watching. eli lilly, those shares are popping, beating on the top and bottom lines, raising their guidance thanks to strong demand for the weight loss drugs. a deeper different into those numbers coming up later this hour. off the highs up about 8% right now. marketing automation firm klaviyo surging double digits after raising guidance. revenue up 35% year over year. key bank upgrading the name to buy saying klaviyo is, quote, getting into the public market groove. shares are up 24%. watch warner brothers discovery, different story, slumping after posting a nearly $10 billion impairment charge tied to plunging values of its cable networks. those shares are down 12%, despite better metrics >> direct to consumer not enough to offset a lot of other not great stuff. let's get to wholesale trade data out a few moments ago. rick santelli has the numbers. >> yes, david. wholesale inventories june

finals, so up 0.2, gets replaced with up 0.2. remains 0.2. that is actually the lightest inventory level going back to, well, april when it equalled up 0.2%. this is the second 0.2 reading in a couple months. but it does underscore, we got to apay tension to this because whether it's trade deficits, trade balance information, or inventories they affect the gdp and this is the second quarter number. if we look at the trade sales aspect not a final, it's a first look, down 0.6%. that is much more drama. we were looking for an up number down 0.6 is the weakest month over month change since march when it was down 1.3 and last month's 0.4 gets revised up 0. if we look at the markets in general, things rather staggering, before initial and continuing claims came out, down a basis point in 2s and 10s, up

nine in 2s, six in tens, hovering around 4%. we haven't closed in august above 4% in 10s, the last time the 31st of july. 1:00 eastern, 25 billion, 30 year in the auction. yesterday's 10-year moved the market. back to you. >> all right. rick santelli, thank you. stocks are rebounding after giving up big gains yesterday. jpmorgan's ceo jamie dimon noting volatility saying this on our air yesterday afternoon. >> i'm fairly optimistic that we have a mild recession, even a harder one would be okay. i'm very sympathetic to people losing their jobs. you don't want a hard landing, but there's a lot of uncertainty out there. >> jpmorgan raising its odds of a u.s. recession by year end to 35% from 25%. it comes a few weeks after that 25% number. investors are all over the map right now when it comes to the macro outlook. bob pisani is here at post nine and has a closer look.

bob, i want to start with something first the fact that you're seeing treasury yields move higher and stocks move higher. >> look at the initial claims. that is not normally a market mover. the move up in yields and premarket trading in the s&p 500. that's indicative of a relief rally and when you move on a weekly jobless claims you really are data dependent and it's a hair trigger economy. so the problem here is we have low macro visibility, that's what the word is, causing a lot of problems. there is not a lot of confidence in the soft landing, but investors are all over the map on where the economy might be in the next six months. because of that it has turned into a good news-bad news market. we appear to be finally decoupling from the yen carry trade a major distraction earlier in the week. the exchanged traded fund the invesco japanese yen, fsy, tracks the price of the yen has dropped three days in a row here. this indicates the currency is declining.

good news. the bad news, the muddied macro outlook, combined with a weak seasonal period will keep the volatility index the vix high for a while with the vix still below 30. investors are expecting almost twice as much daily volatility as when the vix was at 15 say that was only a few weeks ago. that is what vix measures, by the way. it measures expectations for volatility over the next 30 days. the spot vix. the vix futures curve remains in backwardation. the price of the cash vix and the front month vix future contracts against september and october are higher than the contracts farther out. this is far below where it was on monday but still in backwardation. the consensus still seems to be we are not in recession which you heard. jamie dimon affirmed on our air yesterday. the bad news, we are slowing. it's not clear how much. travel and hotel companies, for example, have indicated a modest slowdown is definitely under way and you see what's going on here with the travel stocks in the month of august. so here's more good news.

so far, this is a garden variety correction. the s&p 500 was down just about 10% from its recent high to the intraday low on monday, right at the open. right at 10%. here's the bottom line. we are data dependent but the market is validating a healthy correction view rather than a serious economic downturn. there's an old saying in the market the difference between a correction and a bear market is a correction is when investors are afraid something bad is going to happen. a bear market is when they're all convinced something bad really is happening. so we have the former and not the latter right now and i think that's the good news. one quick thing, talking about lilly acting as a tech stock, not that lilly is acting as tech stock, lilly was adopted by the momentum community, and it became part of their basket of trades and the etf momentum trades. i don't know if you can bring up mtum, momentum etf, it's 6% lilly. >> wow. >> that rebalances a couple times a year.

all the big momentum indexes etfs have lilly at 5 or 6%. that's 6% lilly. >> we noted it because of the downdraft in the shares when we had the rotation, of course, which started the selloff in the megacap typically tech names, but to your point also includes lilly. >> so the mags, the magnificent seven, and the one etf dropped 20% from the high and low. lilly is a sim slar situation. it's a momentum, not a tech stock, but momentum, up and looks like that on the surface. it's a momentum play. >> it has a megacap. it does have a huge market capitalization. >> yeah. a secular growth story that investors are trying to get their arms around not different than ai. bob pisani, thank you. that was great. let's get more perspective on this volatile market. our next guest says the bull market remains intact despite the recent losses. joining us is mona from edward jones and senior investment

strategist. >> great to be here. >> garden variety correction even if it came ferociously and fiercely in the course of a day or two. >> yeah. look this correction was driven in two parts. one we had a growth scare. clearly the jobs report on friday triggered that. this liquidity technical swear with the bank of japan raising rates. that part of it has been addressed. the bank of japan said look, we're not going to raise rates further in this period of volatility. now what everybody is watching is, is this growth scare going to turn into a recession. thus far this morning brought another piece of good news, we're watching the labor market closely. the 4.3% unemployment rate what does that mean for the economy? well one, it is weakening, the labor market, but two, we've seen this clear trend. it is because new entrants are entering the labor market, not because folks are getting laid off. so to us, that leads us to the conclusion that right now we are not seeing a consumption scare which could lead to the

recession. jobless claims supportive of that this morning. if we do have a soft landing, that is a good backdrop when the fed is cutting rates and soft landing much better for markets than when the fed is cutting rates entering a recession. that's the base case for now. >> what are the data points you're watching closely to see whether that dynamic shifts and actually becomes something more recession like? >> first and foremost another labor report jobs report september 6th before the next fed meeting on september 18th. secondly, we are watching gdp growth carefully, obviously. it looks like atlanta gdp now is looking at 2.9% for the third quarter. pretty good. we'll get another second quarter reading above 2%. so again, not negative by any means. we're watching earnings growth. we're about 80% through this earnings season and looking like about 9 or 10% growth thus far. looking for the full year as well. >> one big earnings name we haven't heard from is nvidia.

>> yeah. >> how important is that for the market given it's still a few weeks away? >> look, i think the magnificent seven trade we've seen air come out of the tires there. we are seeing the start of what we're calling a rotation. people taking profits from that part of the market into the broadening theme, not cyclical value parts of the market. we think for this market to really work we not only need to see a rotation but a true broadening of the market leadership. we think it's good to see some of the tech valuations come back in, so investors have this ability to not only go into the ai tech trade, but do both sides of the market, so growth and value we think has room in your portfolios over the next 12 to 18 months. we think ai is still in the early innings of a multiyear secular growth trend. but nvidia earnings to your point will be skey to the trade and we think they have consistently beat and beat at the same pace, maybe not. but the good news, we're in a

better setup. >> if you want to see broadening but want to own the mag seven, i'm trying to figure out what you're telling people to do here. are you telling them to own the s&p which they may get hurt in some ways if we get a real selloff in some of those megacap tech names. >> one thing we've been saying if the theme for the last probably last year and the first half of this year was narrow portfolios are winning, you needed to have tech in your portfolio and you would do well. but the theme we think for the next 12 to 18 months is not narrow portfolio. we think you need to have the diversification. to your point s&p 500 is a good way to play it. 50% is tech and 50% not tech. so we do think that if you want to, you know, make sure that you're producing the alpha you want you have to make sure you're looking at your portfolio carefully for both sides of that. >> we track the equal weight as well for that reason when we talking about the broadening. good to have you on. >> thanks, twice. >> we got green arrows across

the board. every major average up 1% right now. >> to carl in paris, another busy day of olympic events. carl? >> david, yeah, really is. we have a little news this morning. we know who the flag bearers are going to be for closing ceremony. katie ledecky is going to be one. nine-time gold medal winner. nick mead, member of the u.s. men's men's rowing team, the first men to win gold in that event since 1960. they will be leading the charge on sunday night. as for the medal count, interesting race between the united states and china with just one medal separating them for now on the gold front. the u.s. 27, china 26. tonight there's going to be some drama on a couple fronts. one is going to be the men's 200-meter final. noah lyles coming off, of course, that historic gold win in the 100-meter trying to become the first american to win both the 100 and 200 since carl lewis back in '84.

he actually had a great tweet. he said, i have asthma, allergies, dyslexia, add, anxiety and depression, but i will tell you, that what you have, does not define what you can become. what an incredible message. the other drama, men's basketball because the u.s. is going to take on serbia in the semis. serbia, of course, has nick colie jo colie jokic. this guy is going to be a rematch of the gold medal match in rio which the u.s. did win by 30 points back then, but kevin durant, who did have a game high 30 points back then, is the only member of the u.s. roster who will play tonight and had participation in that rio event. it's a new team.

so a lot going on. later in the hour, guys, we're going to take a look at the trend of catering to consumers who come to the olympics, showering them with hospitality on a week where we're paying a lot of attention to the cautious guidance out of airbnb, marriott last week, coming up later this hour. >> so timely. looking forward to that. thank you. see you later this hour. >> as we head to break, here's a road map for the rest of the hour. eli lilly shares rallying, quarterly sales of its weight loss drug crossing a billion bucks for the first time. we're going to go inside the latest numbers. exclusive results of cnbc's all america survey and how the presidential elections are playing out so far in the market. >> and shares of zillow soaring double digits this morning the company namesing a new ceo he will join us with his outlook for the company and for the housing market. we've got a big show ahead. "squawk on the street" is right back. don't go anywhere.

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you can see eli lilly shares up sharply after, of course, reporting earnings. as you might expect the focus continues to be on the company's glp-1s, the weight loss drugs we've been talking about the last year or so and are posting quite strong sales. anjelica peebles has been following this company and the story and has more for us. >> it's a huge morning for lilly

and alling thanks to the glp-1 drugs. both mounjaro and zepbound beating estimates in the second quarter and lilly raising its full-year sales forecast by $3 billion because of the momentum here. >> we just see unbelievable demand, and we're not even trying that hard to promote this drug. we're not advertising. we told our sales reps to basically just service customers. don't promote. and what you're seeing is just consumer organic demand here as we've shipped more product, as we bring more supply online in the united states. >> now some of the strength in this quarter is coming from distributors stocking the drugs what they're calling extremely low levels of inventory but analysts seeing solid results outside of that and supplies also playing a big role here. jpmorgan saying that lilly's new sales forecast reflects the company's confidence in its manufacturing capacity and they even see more upside for lilly. now lilly's earnings call just

getting under way and we're listening for any more insight on supply and the price of glp-1. yesterday know vo faced questions with wegovy coming up short in the second quarter. we'll come back with updates there. >> morgan's got questions too. let's start with when are we -- they seem to have a moat to a certain extent at lilly, even perhaps against novo nordisk, i guess you lose more weight on zepbound than on wegovy. you know, i just wonder how it's being viewed right now in terms of the sales trajectory for that, versus their competitor. >> right now remember there is so much demand for these drugs and we're still seeing problems with supply, so that is the key dynamic. how much of these drugs can these companies make and really they're expecting to sell pretty much every last dose of those. that's the key here. but again, we are expecting more from lilly in terms of their

pill. they're expecting phase three data next year that could be a dynamic. rick telling us that they feel like they're in the bottom of the first i think for obesity drugs. >> two things that were fascinating to me in that discussion this morning. the conversation around the compounded glps that we've been seeing, hit the stock of hims & hers, for example, how that plays out as you see more supply come online and what we're talking about when we talk about compounded mixture, but then also, what it means to go from injectable to orals in that it seems like according to rick's, there's kind of enough nuance that you're talking about different parts of the market here. >> yeah. that will be something that will be interesting to follow as we potentially see more drugs because right now, you have two injectables. they work pretty similarly in helping people lose upwards of 10% of their body weight, but there's a segment of the market that might not need to lose that much weight or they've taken

these injectables and keep the weight off. you might see the fragmentation. that will be something interesting as we see both novo nordisk and lilly progress and more companies enter the space. >> it's all about glp-1s but they have an alzheimer's drug on the market. any update how that's doing. >> this just got approved this summer and we're going to be listening on that call for any details. these are drugs that we're going to take some time, both their drug and the one from biogen and eisai, these are going to take time to roll out because they're not as easy as given someone a pill. you need to get an infusion. we'll be listening on the call for any updates on that. >> thank you. lilly up almost 8% right now. after the break how the presidential elections are playing out in this market. exclusive resultofs cnbc's latest all america survey. that's next.

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power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley welcome back to "squawk on the street." how is the presidential election playing out for investors? steve liesman joins us. he's got details from cnbc's

latest all america survey. >> morgan, yeah, in this hyper partisan world we live politics infects almost everything we do and think and the cnbc all america economic survey shows it's true in our thinking about the stock market, playing politics with your portfolio could be costing you money. over the past year, democrats have been net positive on the stock market. that is those who think it's a good time minus a bad time, they're plus 12. average republicans, minus 34. what did the s&p to in the past year july to july, plus the 24% republicans could be right bunt it's and end case and both sides are guilty playing politics with their portfolios. republicans were net negative you can see here on stocks during the obama administration. over that period of time, stocks rose roughly is 1% including 19% in one of those years.

democrats they were very negative on stocks under president trump. stocks rose 11%, including 12% in one of those years. we were talking about negative republican views on stocks under biden and they're up 40% over the course of his presidency, including 24% in the last year. compare those views to what we call the financial with more than $100,000 in income and more than $50,000 in the stock market. they go up and down if you look at the next one. look at where this baseline is. they're generally about 27% on average positive towards the stock market. it varies less than the average republican and democrat. the group has been net positive on stocks as i said by about 27%. the problem may be average americans attach too much of their political beliefs to their views on the economy and stock market. the stocks have gone up and down while republicans and democrats were both president, but generally up under both. the financial elite seem to know this, morgan, and they're richer

for it. back to you. >> all right. interesting statistics there, steve. thank you. steve liesman back at headquarters. take a look at shares of zillow up sharply. the company names a new ceo and he's going to join us next with his read on the housing market and that company's outlook. ck see irit hetrt"s gh ba.

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welcome back to "squawk on the street." i'm silvana henao with your cnbc news update. police in austria say the prime suspect in a terror plot to attack taylor swift concerts in vienna confessed he planned to kill himself and many others with knives and explosive devices. a senior law enforcement official tells nbc news that u.s. intelligence was the first to tip off authorities about the potential terror attack. yesterday organizers canceled the three upcoming swift eras tour concerts in vienna after the plot was uncovered. one person is missing after

tropical storm debby made its second landfall this morning in south carolina bringing torrential rain, flooding and tornadoes to the area. the storm is expected to move north and wreak havoc for the rest of the week. according to the most recent financial disclosure, the vice president, kamala harris' running mate, tim walz, doesn't own any stocks, bonds or real estate, and earns a salary of about $127,000 a year as minnesota governor. his financial profile, a stark contrast to gop vice presidential nominee jd vance. forbes estimates his net worth between 3 and $10 million. back to you. >> thank you. just over an hour into trading and take a look at markets. we got a bounce this morning with all the major averages higher. let's get over to -- and we see a number of stocks seeing big swings as well because earnings continue. over to dominic chu with some names to watch.

>> morgan, lots of movers. limited amount of time. fire through the cliff notes version of these. start with online dating platform bumble having its worst day on record down 35%. it reported a profit beat but a revenue miss and gave a weaker than expected forecast for the current quarter that deals with competition from match group and also slowing growth in consumer spending. then you got fastly shares down right now around 16%. the cloud computing company reporting a smaller than expected loss on revenues that were in line with estimates but gave a softer than expected full-year outlook and analysts at piper sandler downgraded that stock to a neutral from overweight. monster beverage down about 11% in early action after the energy drink maker missed estimates for both profits and revenues citing amongst other things a pullback in demand from cost conscious consumers and less foot traffic at convenience stores. fellow energy drink maker celsius down half a percent due in part to analysts at bank of

america downgrading from an underweight to neutral. we'll stick with beverages dutch brothers down to the tune of 25% after the specialty coffee and drinks quick service restaurant chain reported better than expected results but also raised its forecast but the raise fell just shy of some estimates and for a stock that was trading at 96 times next year's profit estimates valuations still a concern. the dutch bros shares down. not all bad news. shares of under armour, up right now almost 20% after posting a surprise profit per share on better than expected revenues. its turnaround plan and supply chain issues are at least going in the right direction. a lot of big movers. i'll send things back over to you. >> well done. racing through nose names. we didn't mention a lot of them. thank you, dominic chu. >> takeaway, less caffeine. people are drinking less. >> from the dutch bros. >> energy drink makers.

>> energy drinks, talking about that monster and celsius. >> not me. >> no. >> three cup a coffee a day girl. >> you have a lot of little kids. that's not easy. let's talk real estate now, shall we. another stock that actually is moving, outperforming the broader markets for august, mortgage rates dropped to the lowest level in over a year and check out shares of zillow because they're up about 15%. that real estate app announcing a new ceo forecasting double dim it earnings growth for the full year. joining us exclusively in his first interview in the role is jeremy wacksman zillow's ceo. nice to have you here for your first interview as well, jeremy. your business has been outperforming the residential real estate industry a part for eight consecutive quarters. i will ask the question, can you continue to do that? can you continue to outpace the growth of the industry of which you're a part? >> thanks for having me. excited to be here. we're planning to.

quarter two results we reported yesterday up 13% year over year. with revenue growth across all of our revenue lines. residential, mortgages revenue. guiding 10 to 13% revenue growth in q3 as we see our housing super app strategy building software forconsumers, agents and loan officers to buy and finance and sell homes to come to life and get in the hands of more of our customers. >> explain what a super app does and why it's potentially positioning you to outgrow your industry. >> many folks know us for dreaming and shopping, and checked their estimate and neighbor's estimate and thinking where they might want to move. hundreds of millions that come to zillow but only help a small percentage buy or sell their home. right. only a few percent. our goal to get that share to 6% by the end of 2025. and so that's what the housing super app is about, building software and tools, for consumers, for agents, for loan

officers to start to find homes and then ultimately make offers, finance and buy homes with zillow, and its services. >> why was now the time for a leadership change and what do investors need to know about you? >> because the strategy is working and the company is in great shape. rich came back to the ceo seat to put us on a journey towards the transaction that i outlined and now three years in, we are on our way and you're seeing the results of the investments we're making play out in the results and seeing what we expect confidence in that growth ahead. that's why the time is now and we're so excited about our strategy about the results we just reported and the future ahead. >> so i know you're out pacing the broader industry right now but what are you seeing across the industry? we're coming out of a spring home buying, selling season that wasn't so great. we know mortgage rates maybe they're starting to come off again a little bit in the last couple days, but those are elevated. home prices elevated as well.

everybody waiting for the fed to begin cutting but what are you seeing in housing? how much are fed cuts going to change that picture? >> yeah. the housing market has been choppy for the last few years. and we expect it to remain so. you know, we're not seeing a up ton of growth in volumes. affordability is challenging. if and when rate cuts come that will help buyer affordability a little. given home prices now it's been a challenge for a long time. the great thing for us as we're trying to grow a small share we are growing share regardless of the housing market and plan to continue and so our focus is on building the software and services to help more people start that conversation, so that when it's right for them when they can get it done they can use us to help get it done. >> we saw on the screen there, reference to rentals because you clearly are not just confining yourself to selling homes or people who want to buy a home. what about the rental market in terms of trends from a macro perspective? >> yeah.

the rentals market is a fantastic market. many folks don't realize it's a fifth of our revenue now. and zillow is the largest marketplace for renters and to find a rental in the country. you know, we have the most listings, all types of list, which is what the renter wants nop one-stop shop or mls for rentals, so zillow has been organizing as much of the rentals we can and that's driven the largest audience. renters in the country come to zillow not to find a place but many can apply, sign their lease and make payments with landlords on the zillow platform. that's about a ficfth of our revenue and growing really fast. 29% year over year and we expect that to continue. we see that being a billion plus dollar business for us over time. >> all right. we're going to continue to track it and look forward to having you on again. congrats on the new gig and thanks for joining us, jeremy. >> thanks for having me. excited to be here. >> we're turning to another area

of real estate demand office space improving here in manhattan. diana olick joins us with that story. >> morgan, yeah, several new reports point to improvement and a potential bottom in office demand. manhattan office buildings in june had an average visitation rate of 77% of 2019 levels. that is the highest monthly total since the real estate board of new york began tracking last year. visits were up 72% of those levels one year ago. class a plus buildings saw a 91% visitation rate, also the highest since tracking began. but some b and c buildings with prime access to transit registered improved visitation. looking at a national picture in q2, the office market posted its first quarter of positive net absorption since 2022 according to cbr, e. net absorption the total amount of space leased minus the amount much space that has been vacated during a specific period. leasing activity improved year over year and space offered for

sublease declined to 4.2% of total inventory from 4.7% a year before. manhattan leasing was the third strongest in the nation behind atlanta and d.c. the vtf office demand index measures the amount of new square footage requested by employers each month rose year over year and seen annual growth for one full year and experts say with a year of growth behind us we can now say that office demand reached a bottom last year. guys, how about that. >> all right. >> yeah. >> sorry. that's exciting. ver naidu, had earnings this week, up 3% today, up 8% week to date. this is one of those office reits that i think speaks to what you're talking about here. the questions, how much of this is the requirement by so many employers for more workers to come back to the office? how much of this is the fact that supply is coming off line as well as you're starting to see more buildings converted to

other things? >> i think you've answered it on both sides. a mix of both. employers are asking more workers to come back to the office and in areas where they're not and vacant office buildings you are seeing them being changed over either to residential complexes or something else, but you are seeing some of that vacancy start to fill up a little bit. whether it's office workers or something else. but, you know, there's still, obviously, trouble in the loan market and cnbs for commercial real estate and you will continue to see that play out. this is demand and as we're starting to see demand come back, that means at least the market itself is starting to recover. >> but not for everything. >> no. >> there's buildings in midtown. >> i'm talking office. >> office buildings in midtown, i mean, that were valued at hundreds of millions a couple years ago and are selling for $8 million. >> exactly. and valuations like that not only in office but also in apartment are way down because of higher interest rates. i'm talking about demand is starting to come back. when we're at the bottom or at

the bottom and then you say is it getting less bad? that's where we are now. still a lot of trouble out there, no question, david, you're right, but it is starting to come back on the demand side. >> yeah. i see it in the subway traffic a little bit. nobody comes to the office on fridays. >> oh, my gosh no. >> except me, maybe you, that's about it. >> no traffic. that's a nice change of pace. >> true too. thank you. check out shares of howard hughes. received a buyout offer from pershing square, proposed taking the company private, buying about 62.5% of the company that it doesn't rr own. feel like i visited this story years ago once. maybe i did. there it is again. let's check in with carl. he's in paris. a look the a what's still ahead in the show. carl? >> if you've never been to the olympics the experience is changing. more exclusive viewing areas with wine and beer. meet and greets with athletes.

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okay, team! oh, thank you so much i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot

it's not often there's so much intense market focus on the foreign exchange side of things, but that's what we've been seeing lately, especially when it comes to the value of the japanese yen, and its role in the global market selloff in the last week. is that so-called yen carry trade something traders are still needing to focus on right now, and what opportunities, if any, has that yen volatility created? tune in to our market navigator segment today on "power lunch" at 2:00 p.m. eastern time. , tailor-made for trader minds. ♪♪ go deeper with thinkorswim: our award-wining trading platforms ♪♪ unlock support from the schwab trade desk— our team of passionate traders who live and breathe trading. ♪♪ and sharpen your skills with an immersive online education

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that americans begin to consider. if so know that the experience is getting better and better all the time. this is the first time the olympics have had an exclusive hospitality partner and they're making that experience truly iconic. welcome to the eiffel tower. we are perched about 200 feet in the air at a premium lounge gustav 24. panoramic views of the city and access like this are run by companies called on location. >> of course there are tickets, it's incredible hospitality. how do you bring the sport to life? here at the olympics, this is a really unique opportunity. >> it's a massive operation hosting tens of thousands of customers every day recruiting 500 full-time employees and offering nearly 4,000 menu items. inside their 25 venues find 3.5

tons of cheese, 5 tons of fresh fruit and some 200,000 macrons. despite reports of a weakening consumer, they say, there's appetite for more. something we learned out of covid is we all want to be together, we want to experience things live and be in the moment so we're seeing growth in that. sports destination growth is about 17.5% right now. >> what comes next? on locations already working on milan, los angeles 2028, along with partnerships with the nfl, the pga, and with fifa, for the 2026 world cup. guys, among some of the experiences they can tailor for you, you can watch a swimming meet with michael phelps, watch gymnastics with aly raisman. goes beyond the olympics. dribble a ball on the court before the ncaa final four. literally get on plane with a bunch of eagles fans, david, i was going to mention this to

cramer earlier, fly to brazil and see the opening game for the nfl this fall. so these are not like hyper premium things they're building. more of an extension of what we long have thought about going to an event. now it's about an art from the moment you buy the ticket to not just the time you see it but tell someone about it later on either in person or on social media. >> that eagles flight sounds frightening. >> yes. >> cheese steaks. >> how much premium are we talking about here? what are we talking about in terms of price? >> it depends. i mean their phrase is, for example, some accommodations here 90 euro and all the way up you can imagine what all the way up means. they're trying not to paint this or frame this in a hyper premium way especially now that we're asking some serious questions about consumer price sensitivity, right, in the wake

much what airbnb told us this week, marriott and hilton said in the past few days, too. >> yeah. carl great piece. so many of them this week. you and the crew working incredibly hard certainly. i know that judging from how often you're turning these things out. thank you. carl quintanilla in paris. boeing's new ceo astronauts are stuck at the space station. i'm so glad morgan's here because we can talk a little space, which we haven't done in quite some time. coming up next hour, llnae astronaut jared isaacman. ntense. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right?

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welcome back to "squawk on the street." it's day one for the ceo of boeing, kelly ortberg. investors and regulators continue to focus on the safety and generation challenges in the commercial jet business but issues mounted in the space portfolio as well. yesterday nasa speaking the most openly yet about contingency plan to return astronauts to earth, possibly on board a spacex dragon capsule. that could happen next year. they have been the first two fly

aboard boeing's starliner and have been aboard the iss since june 6th in what was originally an eight-day mission. that happened after helium have required month testing and now nasa considering sending star line are back to earth empty. that's a decision that hasn't been made yet but will likely be made in the coming days, coming weeks. for boelg, though, this could mean a failed test flight and more delays to certification. they have already taken $1.6 billion charges on the starliner. depending on how this shakes out here, that could potentially mean more. one more thing to add to the list for ortberg. >> they can't get them back on the ship they brought them on because nasa won't certify it? it's like gilligan's island, they were going on a three-hour tour, these poor people. did they bring clothes and

books? >> the next crewed mission was supposed to happen this month, which looks like it's getting delayed, the crew makeup could change depending on whether these astronauts are going to stay in space and continue to work on things like science experiments and come back in february or whether they do attempts to come back on starliner. this is one to continue watching. i mean, we knew -- this was a test flight. we knew there were going to be some issues, some hick cups, we knew there would be testing and things that would have to be worked out potentially, but nobody was expecting anything quite like this, i don't think. >> including astronauts that expected they were going for a week and could be nine months? i don't know. i don't even know how long if they come back in february. >> a lot longer than originally planned. it speaks to the fact that a arguably you have systematic issues across boeing that need fixed. the defense and space portfolio,

that was the way to offset issues that would come up on the commercial side, et cetera. the fact they're taking charges on starliner, continue to have issues with things like air force one, there's problems on both sides of the table across the broader boeing portfolio. ortberg ran the mcas systems that boeing asked rockwell collins to design are those that led to the plane crashes a number of years. he's an outsider of boeing but deeply familiar with the processes at boeing as well. >> yes. fascinating. as you point out, yet another thing for him to add to his long list of things he's going to deal with. real quick before we take a quick break here in our market coverage, take a look at shares of warner bros. discovery. want to note the company did report numbers. we are up across the board. it is obviously down sharply. those shares down 11%.

continued concerns and declines in the linear networks, of course, a trend twooef been talking about for many years. as morgan and i were talking, you put up a chart of netflix and a chart of everything else and you get a story of what's happened so often here. $35 stock when they announced the deal to merge with warner assets from at&t, $25 when they closed the deal and now below $7. for the markets, we are up and we have a lot more coverage of that move right after this. at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real.

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good thursday morning and welcome to "money movers." i'm morgan brennan with mike santoli. we're live from the floor of the new york stock exchange today. sectors to target in the volatile market. plus, the ceo of u.s. foods with a read-through on the consumer and inflation. one of the biggest payment processors in the u.s. and europe, ceo and founder of shift4 is here on those earnings with shares of 12% now. let's check in on the markets here. we have anothe