i think they got it ready to go this year. hopefully you can't get nearly as close to the place. we will talk about the harris economic platform on this monday, august 19th, 2024. "squawk box" begins right now. ♪ good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm kelly evans along with joe kernen and mike santoli this morning. andrew and becky are off today. futures are mixed at this hour and that comes after the best week of the indices since november of last year. last week, the dow was up 3%. the s&p nearly 4% and nasdaq up 5.3%.

impressive treasury yields have been mixed. treading water. $3 3.87%. mike? >> they have not gone up. that is one element we can talk about. >> it is a sign of good news or i don't know what. as for crude prices, with the unrest and unscertainty in the middle east, back towndown to 7. talk about churning. crypto, joe, this is for you. bitcoin is 58 and change. gold, i actually had a tweet i was going to make up to get you going. why stir the pot? the tweet was basically saying gold out performed bitcoin in the past. something, something. >> it's $2,500. >> let's volatility. i'll find it. i saved it -- here it is just

for you. since 2021, bitcoin, 59k to 59k. gold, $7,500. the largest drawdown, 25%. >> the obvious thing, let's do a ten-year chart of gold and bitcoin. >> that was nice. >> does that change your view of whatever argument you were making? >> you can't see gold there. it's a flat line. >> does that say $12,400? almost double. >> from the moment. >> almost a double. that's almost as good -- you still have those i-bonds? >> they have to be yielding 3%. >> they are. you can max them out. you can't get an appetizer. on the interest, you can take -- not your family. lady in the shoe.

you can take a normal family, but not -- come on. >> it's up that much from the moment when nobody owned it and nobody talked about it. the point where the maximum number of people talking about it and owning it was five years on the way up. >> do five years. gold has done absolutely nothing. >> trust me. i'm not arguing in favor of gold. >> here's what i'll say about gold. bitcoin. when the vix goes to 50 and people need something to cover margin calls, they sell bitcoin. when there's volatility like that or something in the middle east, people pile into gold. when you hear about price controls and actually with a straight face, talks about price controls, you will see gold go up. some of the other stuff, you will see gold in that regard. >> i thought it needed a response. >> you were on the show.

>> that's why i pulled it up. >> i begged you. my friends were saying -- >> it was april or may of 2023. >> kelly is going to buy a two-year 4% -- >> at the time, it was a two-year -- >> kelly must sleep with a night light on. buy nvidia or amd. >> you buy the market lower. you are not reinvesting in treasuries. instead of down 30%, stocks up 40 since then. >> bitcoin was $25,000 then. >> last spring. >> people are making note of that. it's very, very narrow time horizon that you see the stock market go down 10% and up 8%. it was down for three weeks and up two weeks. nvidia. bitcoin hasn't gone back to the highs. it is a bit of a change of character in the market.

it doesn't say anything about the utility of these things. >> don't some of the people perma-crypto bears -- the future involves iris scans paid for in world coin and crypto so we can tell robots from other people -- already mark zuckerberg would flunk. he would not pass the robot test. did you read that? >> no, what? >> get out your "wall street journal." sam altman wants to look at every single person's eye scan in the world to be able to tell the difference between robots and people and to do that you will get paid in something called world coin. we still have people who don't think crypto is going to be a real thing. i don't know if this is going to happen. did you ever think you would be reading that in "the wall street

journal." >> somebody is always defying the fringe. >> every person in the world, the iris scan, with the basketball-sized device. >> the world coin. this is top of the fold. world coin verifies humanness with the basketball-sized device called orb. >> can you -- i'm worried about me. can you be a human, but the not show a lot of humanness? if you are human -- you can show more or less humanness? >> i'm sure this is fuis fingers or faces. >> you started it. thank you. i missed you, too. news from amd. it is buying server maker gmt

systems. the transaction will boost its ability to make a.i. hardware. jon fortt has an interview with lisa su on "closing bell." and u.s. secretary of state antony blinken is in tel aviv to meet with israeli leaders and including prime minister benjamin netanyahu to push for a cease-fire and release hostages. >> i know this is a fraught moment in israel with deep concern about the possibility of attacks coming from iran and coming from hezbollah and other sources. as you heard the president say, the united states has taken decisive action to deploy forces here to deploy attacks and, if necessary, defend attacks. the focus of my visit is to get the hostage s back and the

cease-fire done. it is time for every tone to ge to yes and not look for any excuses. >> fears have been rising with hezbollah and iran vowing revenge after the israeli killing of top hamas leaders. we were waiting on the weekend and that never happened. i don't know if we can read anything into that because last time that iran was also going to do something, they seemed to not want to go beyond the proxy war and really get involved. they seemed -- >> it is not involved, but the next move is destroy the oil supply. they need to go just far enough to generate a response without going too far to invite a larger feedback. it's weird this all seems to work on some level when it is quite transparent. >> we don't talk about president biden much anymore.

>> he's speaking tonight. >> these are unprecedented times. this would be something for his legacy. i think there is a lot of focus. it would be good for the world, obviously, to get hostages out. it's the "wall street journal" but president biden promised to be a unifier. that would help his legacy if he could get this done. >> two months way faway from th anniversary. a lot of incentives to try to get past this. the democratic national convention does kickoff today at the united center in chicago. among the speakers include president biden and dr. jill biden. tomorrow is barack and michelle obama. on wednesday, vp harris' running mate tim walz and former president clinton and former

house speaker nancy pelosi. harris will address the conference on thursday. more than 20,000 protesters are expected to cram into the 1.4 mile long protest route along the convention. those protesting are focusing on the palestinian rights and reducing u.s. aid to israel. we will have live updates all week starting today with mike allen. >> dr. jill biden. what happened there? we were hearing from her. >> still on the coverage of "vogue" right now. >> i took off. how long was i off? i was gone for a week. life moves pretty fast and if you don't stop and look around, it can pass you by. when i left that thing, wasn't vice president harris a failed vice president? at this point, have you -- >> that was longer ago. that was a couple of weeks.

i'm not sure too much happened in the past week. it is a done deal. >> now combo of joan of ark and madame curie? >> kelly's running. >> day two. >> you haven't noticed any change? have you mentioned things are like that or is that the unmentionable? >> it hasn't come into my atmosphere. >> vice president harris ramped up her attacks on corporations and accusing them of driving up prices at grocery stores. she didn't explain how the ban on gouging would take place. she is proposing to expand the child tax credit.

she will seek to add a new tax credit. it was raise taxes on the wealthy individuals as a means of offsetting middle class tax cuts. joe, you did miss that. that was quite a lot. >> dropped out of the race. was it july 21st? >> of what? oh, biden. >> you're right. it was much longer than just my being off for nine days. it was almost three weeks. >> now you can address the economic plan. >> it was almost three weeks. much longer than i thought to go from what we used to think to what now is hopeful. >> you went from things you didn't have to have an opinion about. >> you think people weren't sure about how they felt. >> there weren't strong foeelins

in any direction. >> we don't remember iowa not making it to that or the 1% approval. >> i don't think it matters. >> when you've got -- >> isn't this true? people and timing. that's it. the same things that didn't work a year ago, all of a sudden -- look at trump. it can work one time. maybe not another time. >> i don't know how you suddenly come back from no private health insurance and no fracking and ending the filibuster and getting rid of i.c.e. and defunding the police and then suddenly become a moderate. >> if youn't switched. you don't think she would do what it takes to get elected? >> you don't think mainstream media switching -- >> what we are seeing is a real

world test of everybody going into july 21st saying if only there was an alternative to these two guys. that was the test. if there is a margin of people -- >> other than not being donald trump and not bijoe biden, what the most impressive thing? >> shegot elected in california. i'm not going to advocate for her. >> it's a little late. coming up, central bank -- we have the same artist. perfect. >> central bank leaders will gather in jackson hole for the annual fed symposium. what to expect ahead of jay powell's speefch on friday. ox> coming up, another case of mp defected in africa.

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san francisco fed president mary daly telling "the financial times" she believes recent economic data points has given her more confidence the economy is under control. chicago fed president austan goolsbee says there's no guarantee the fed will lower rates this fall. >> i don't think it's a certainty and i don't like, as

you know, tying our hands ahead of time when we have a lot of data to come in and everyone on the committee's going to get to speak theirpeace. it's a economy decision. >> meantime, neel kashkari says he is open to cutting rates at the fmoc meeting. in june, he said a cut might not be warranted until the end of the year. kashkari said on friday that the conversation has shifted because of the rising chance of the labor market weakens too much. that is all ahead of what jay powell has to say on friday. joining us now is stephanie link, portfolio manager at hightower advisers. steph, good morning. >> good morning. >> i mentioned we had the near round trip, not quite in the s&p 500, but over the course of the last month plus, obviously, some things got shaken loose and maybe some new themes emerge. what is your current read when you believe this recovery or has

the leadership of the market changed in the last few weeks? >> well, i think a lot of the reason why we did bounce back, mike, is because of the economic data here in the states has been pretty good. you are running 2% to 2.5% gdp when you run the various pieces together. it started two weeks ago with the ism services and new orders were better than expected. you had two weeks of decent weekly jobless claims. they are certainly trending higher, but it is not out of control and nowhere near recession. inflation, inflation, you are at the lows you have not seen since march of 2021. you have to put a lot of emphasis on walmart's report because they did a 4.2% u.s. same-store sales number in the quarter. hardly a deteriorating consumer. shore, they're taking market share. i get all that. the consumer is hanging in there

and that is 70% of our economy. i also think that warren buffett buying ulta and pershing square buying led to a lot of confidence. a lot of good things going on. >> i guess the question is now we are back up to 2% of the s&p at record highs. semiconductors are actually l lagging and you wonder if we rebuilt the positioning. we did have that growth scare after the jobs report. earnings have actually broadened out. that has been noted as people are summing up the second quarter results. that seems like a positive. the question is if the markets figured that out. >> i think you can find value beyond tech. i still want to have exposure to tech. two weeks ago, i was adding to my lam research position when it

fell in two days 15% for no reason. we just got through with earnings and we just got through with guidance. i have a lot of confidence in buying the weakness. that's what i was doing. it is lam research and bank of america and truist financial. i bought new positions last week. crowdstrike and chipotle. we know what happened with brian niccol leaving and going to starbucks. that stock was down 30% from its high and i think there's a lot of places you can pick and choose from. >> eaton as well as truist. clearly, you expect this expansion will go for a while. your premise is the economy, we had a freakout, but it is not that vulnerable. how much is the potential for fed rate cuts filter into that and whether they are kind of

necessary or not? >> well, i think we're expecting the fed to do something in september. whether it is 25 or 50 will depend on the job report and the weekly jobless claims and they keep an eye out for it. i think they will signal they are beginning a cycle. that's important. at the same time, growth has hung in there. the definition of soft landing, i think, you know, that's what i'm thinking it's going to be. i don't think there's any reason not to think that way given all the economic data and given the earnings and the trajectory of earnings and guidance going forward. i mean, i don't think there were many people that expected this past quarter to see the s&p 500 earnings be 11.8%. so, i think maybe it doesn't stay that high, but 8 to 10 is very reasonable. as i mentioned, a lot of the companies down with good valuation, there are a lot of paces you can pick and choose

from. >> we will hear from a couple of retailers in week. one question that could be answered is whether walmart is exceptional when it comes to its ability to actually out perform in this environment. >> 100%. they are executing flawlessly. they have the traffic. as i mentioned, they have the same-store sales. target will be very interesting. expectations are very low. stock trades at 15 times earnings. the bar for comp at target is 1.5% positive. there is a chance they guide downs because the exhe expectat for the second quarter is 2% to 2.5%. we have to see. they have a lot of levers in terms of margins for growth. tjx will be interesting. they have been the beneficial of the trade down. they have executed very well. usually that stock trades off. that is a good time to pick up

some. >> coming from a different direction, valuation wise, from target. see how it shakes out. steph, thanks so much. >> thanks, mike. coming up, egg prices on the rise. we have to do something about this. we have to do something about this. i have a great idea. cap them and no one will have any. we're going to tell you why. later, we talk to economist john taylor about jay powell's big speech this week and what to expect from the fed and at its next meeting. "squawk box" will be right back. . - ♪ unnecessary action hero! unnecessary. ♪ - was that necessary? - no. neither is a blown weekend. with paycom, employees do their own payroll so you can fix problems before they become problems. - hmm! get paycom and make the unnecessary, unnecessary. - see you down the line.

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edge. eggs are getting expensive again. prices rose for the third straight month soaring 19% year over year. this is now linked to the outbreak of avian flu this year. a dozen of large grade a eggs tops $3 for the first time in a year. that is still 20% below the recent high of january of 2023 which followed a previous spike in avian flu cases. >> i had to do some more digging on. this we know they crashed last year -- st. louis fed tracks the price of eggs. it is $3 right now. the peak was when it went to, you know, $4. pre-pandemic, we were $1.62. >> right. we have seen this in the past and there was a -- i forget the biggest egg producer.

>> cal maine. >> that quadrupled because of the atkins diet. >> for sure. >> if you were on a desert island and you could just have one food, it might be eggs. if you are not going to eat or go on the atkins diet, eggs. >> we were looking into getting chickens. >> which came first? >> you want a chicken? >> by the way, the price of the stock here, this stock is the at all-time highs. >> again. interesting. >> 70 and change. >> my idea is because we love chicken wings so much -- >> oh, no. >> i told you this before. >> the one time. are you going to get chickens for the chicken wings? >> no, i want genetically

modified chickens for the wings. >> you didn't sell the egg-ecutive edge. boeing shares are moving higher since the new ceo took over. is the worst over for investors as the stock is under pressure not just recently, but years going back to the crashes in the late 2010s. we'll talk about that next on "squawk box." >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. 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

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you, ok? no... i mean yeah. -just hit my melon. -yikes! should we see a doctor? i can't tell a doctor i slipped on a toy. i'm a triathlete! i had a concussion. most happen doing ordinary things. sometimes the tough thing to do is to get help to prevent serious damage. i like your sensitive side. don't mess with your melon. if you hit it, get it checked. good morning. welcome back to "squawk box" live from the nasdaq market site in times square. let's check the futures this morning which are kind of quiet. we will do that a lot. we love checking those to let you know. down 16 on the nasdaq. dow up just minimally. the s&p off a little. mixed. a good week.

this comes after a solid week last week. speaking of the dow, boeing's ceo is in the bird seat. we have phil lebeau with more. phil, good morning. >> reporter: good morning, kelly. since she took over, people had a different look at boeing shares. admittedly, they were close to their 52-week low and they've been beaten down substantial ly over the last week and a half. kelly ortberg became ceo on august 8th. i know the rest of the market was up as well. who wouldn't pick at the bottom of the stock like this? it is up 10.5%. kelly ortberg has been making the right moves since becoming ceo. he has been on a restoring trust tour, including meeting with workers in the seattle area and

met with employees at the spirit aerosystems. he has met with the ceos of boeing's customers. customers who have been very unhappy over the last couple years that includes united airlines and after having lunch with scott kirby, kirby posted on linkedin that he came away impressed by what he heard from kelly ortberg. he said i came away with the renewed confidence that boeing is on the right path and will recover faster than expected. you see the numbers right there. the big hurdle is coming up. the machinist contract is coming up. kelly ortberg started to meet with those employees to see where the two sides are on this. that will be a contentious

negotiation, guys. at the end of next year, the target that boeing has never taken away of hitting $10 billion of annual free cash flow by the end of 2025. free cash flow is negative $8.3 billion to date. a lot of them are expecting to see kelly ortberg take that away. >> phil, are we to read into anything with starliner as a -- boeing has some involvement in that as well. i don't know if we should think about it as broadly being tarnished with the planes and this space issue or the space issue is separate from the manufacturing problems they have had. what do you think about that? >> reporter: it is totally separate from the manufacturing problems on the max line. having said that, it goes all into this pot of i'm not entirely confident boeing has

its arms around everything it needs to do. that's generally if you had to put a summary in terms of what analysts and investors think about boeing, that's generally it. it doesn't mean the company doesn't have some bright leaders and some bright employees and can do the right thing. it just needs to be going in the right direction and they started that with the manufacturing. with regard to starliner, kelly, i don't cover space. i do cover boeing. i am familiar with what's going on with starliner. it will be interesting to see what happens here. certainly, it's a terrible look for the company. you have two astronauts up there and you are not sure they can come back on your spacecraft. there's no way you can sugar coat that. no way at all. it looks terrible all the way around. where that is on the priority list for kelly ortberg, i can't tell you at this point. you bet that is one of the first questions when he sits down with analysts.

one of the first questions is going to be what is going with space. you are way behind spacex and other players in that realm. you've got to make a decision here. if you are going to play with the big boys, play with the big boys and start improving your performance dramatically. >> phil, could elon get those two astronauts down near term? is this a matter of pride? >> reporter: i don't know he could do it near term, but that is an option nasa is looking at coming down on a spacex. >> i feel very bad for them. it must be very difficult. there are long-term effects that we don't even know as we're not there yet, obviously. if this is just pride where boeing does and want to acknowledge it needs help to do this -- >> reporter: i don't think that's it, joe. i think nasa's involved here. this is not a pride issue. >> boeing says they can. >> reporter: if they said we can

do it, no, no. nasa makes the decision. >> it could be pushed out even into next year? >> reporter: well, potentially. that's the latest report when nasa looks at everything. any way you look at it -- any way you look at it, it's a terrible thing. >> phil raises the larger issue. the new ceo has to tackle the company problems. this is one of them. does it need to fight both battles? phil, we appreciate it. >> i'd be climbing the walls. how many times do you play solitaire? i guess they try experiments to keep busy. coming up, the democratic national convention kicks off today. axios co-founder mike allen will join us.

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the democratic national convention kicks off today in chicago. joining us now is axios co-founder mike allen. i said it a few times, mike, and you probably studied this in college. time between major events in the universe are getting closer and closer. it's been -- we were talking about this earlier. it's been since july 21st is when president biden relinquished ontrol. it hasn't even been a month yet. are you a little bit -- is your eyebrow raised at all in the change of perception of vice president harris? >> joe, you are completely right

and i come to you from the united center where there's a little bit of first day of school feel. everybody is figuring out security, which is tighter than in milwaukee. joe, you are exactly right. it's 28 days from that epic phone call that the president made from rehoboth beach when he said he would not run. it is basically a snap election. joe, you were talking about perceptions. axios is up this morning with exclusive reporting of behind the curtain column by me that makes the point that some of the most surprised people about the perceptions of vice president harris are biden insiders. for three something years now, they have been questioning her governing chops and questioning whether she was ready to take on

former president trump. boom, she's suddenly at the top of polls. very quickly consolidated power all around town. excitement about her setting the stage for the president's passing the torch moment right behind me tonight. >> i tweeted this out the day it came out. i expected it, obviously, but brace for an absolutely overwhelming effort to rehabilitate kamala harris' image. they made various failed attempt in reboots over the last few years. with stakes so high, this one will be off the charts and involve quite a bit of aggressive insistence from many of the same people who insisted about biden's condition. it's mostly the same people. i don't think the democrats have had to do much. i think it is mostly mainstream media engineered. i understand that. just not being trump or not

being joe biden, that was good for 20 points right there. at least. >> yeah, there's this sense of shock. more exclusive reporting up on axios this morning. president biden, as he comes in for the first time in 52 years on the public stage since elected united states senator at age 29. for the first time, it's the end of the road. we're told he's a little bit relieved and knostalgic and shocked and pissed over how this all has happened. we are told tonight that the vice president is going to say he believes in democracy in america and he's going to say there's nothing soft or nostalgic of what he has been able to accomplish in the white house. what he has been able to accomplish at home and abroad has been possible because of democracy in america.

joe, i would look for him to use the phrase one more time that you and i have heard president biden and vice president biden and chairman biden say for decades. he'll say it is about you the pe people, not special interests. i bet he'll make a reference to that one last time. >> uh, i don't know about this journal piece today. you saw that. what will biden's legacy be at this point? the journal and, obviously, the journal has a point of view that's different than a lot of other -- at least the editorial page. he promised to be a unifier and being a progressive. a sad presidential legacy. time dilation. it wasn't that long ago i remember that speech about being a unifier. that was more difficult than the president thought, i think. >> joe, you have to pull back the camera and look at and use

the michael beschloss definition of leaving the country different than when they found it. if you look at the chips and science act that goes through the middle of the country from arizona to syracuse, new york. if you look at the infrastructure bell and you look at the other major legislative accomplishments, history will call this a very substantive administration and, of course, astonishing and this is your time dilation phrase, the way it ended is an essential part of the tale. we can't remind ourselves and our viewers too many times. every single day we're living could be a book. to think of the october surprise. now tell me the august 19th surprise because you know we're

going to have it. we're living history hour by hour, day by day, week by week. tonight in the passing of the torch, we're going to see an amazing american moment where scranton joe hands off to vice president harris who already has had so many historic on the doorstep of more. >> oh, we shall see. you know, when i hear about a lot of those things, i think, you know, intel is getting 8 billion and laying off 15,000 people. the inflation reduction act supposedly capping medicare prices. we're going to talk to dr. scott gottlieb. that doesn't happen till 2026 and money has to go to part d to keep from premiums going up. the transition, whether that can be done with central planning and, you know, with the state picking the winners and losers, we'll see whether that is a good experiment or a bad experiment. all i know is eggs are up about

40%, mike, i'm ott an adkins diet and it's costing me a lot of money to lose weight because eggs have gone up so much. >> joe, you're looking good and from the pictures of your house you posted on twitter i think you'll be able to buy eggs. >> you ought to see the house in georgia. >> what did i miss? >> he's called me country club joe. how much is axios worth now, mr. co-founder? pretty damn good. >> axios is where you go to get smarter, faster and what matters. two quick things to watch. one is economists, mainstream, even left leaning economists panning the populist plans by vice president harris, economic reality, you increase demand, you're going to push up prices and then you could push up the inflation that you're trying to solve. second, every single one of your viewers is interested in

leadership, management, we have a great interview on axios with the white house chief of staff, of course, a former ceo and entrepreneur himself. talking about how you manage that last compression of time. 154 days until the inauguration. how do you manage that 154 days, get as much done as you can, the way they're saying it around the white house, they'll sprint to the tape. what president biden has asked the staff to do is do as much in the next five months as they've done in any other five-month period. >> you've accomplished so much in your short life. you can call me, i can tell you about the moon landing. i can tell you about the nixon price controls and i can also tell you about people eating their dogs down in venezuela in what -- you can actually get pigeon to kind of taste like quail if you put the right stuff on it, i'm told from the price controls in venezuela but give

me a call. >> i think i'd rather have what you serve at your compound down in georgia. >> true southern food. thank you, mike. >> thank you. >> we'll be right back. upwork is half the cost of our old recruiter and they have top-tier talent and everything from pr to project management because this is how we work now. energy fuels, a leading american uranium producer,

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still to come, an outbreak of mpox is raising concerns. we'll talk to dr. scott gottlieb when "squawk box" comes right back hone-calls... and they don't "circle back" they're already there. they wear business sneakers and pad their keyboards with something that makes their clickety- clacking... clickety-clackier. but no one loves logistics as much as they do.

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it's just before 7:00 a.m. you're watching "squawk box." i'm joe kernen along with kelly evans and mike santoli. andy and becky are off. amd is buying zt systems for $4.9 billion in cash and stock. amd says the transaction will boost stability to make ai hardware. jon fortt, meanwhile, just looking up something real quick, has an exclusive interview with ceo lisa su coming up today on "closing bell overtime". antony blinken is on the ground in israel to try to broker a cease-fire. the u.s., egypt and qatar are pushing for an end to the violence in gaza and working to find solutions to end the

ten-month-old war. investors are gearing up for more earnings this week including reports from key retailers including lowe's and target which could shed more light on the health of the consumer. what i was looking up, guys, is there are ways to watch the election, different betting sites and i happen to notice on polymarket, if you want to know to the second how far away the election is, they have it to -- on cnbc -- >> we would have it to the second. >> we would have it to the tenths of a second. it's 78 days, 17 hours, 58 minutes and 40 seconds, 39 seconds, 38, so in case you want to look at it. >> if you're betting, you need time value of money. >> because it could be an option. it's not an option. it's more like a future. >> when does it actually start? >> do you look at --

there are about ten betting sites. rear clear politics average. >> you mean the betting sites? >> the betting sites. >> no, i decon't. >> you look at polymarket as much as you do and you're shocked -- >> predict.com. it was tied yesterday. >> i saw 52 the other day. >> it's 51/47 today. but it had closed after the introduction of the economic plan, it closed to 49/49. >> they're all eye tie plus or minus a little is what it comes down to. speaking of betting, checking the futures, really just hanging in there right around the flat line holding on to last week's gains, 4% for the s&p 500. let's get to contessa with a look at the premarket -- >> loves betting. >> can i say, though, before we move on to movers, betting on politics, betting on elections in the united states is not permitted. in order to do that you have to

go to unregulated offshore sites. >> we can do that. >> for what it's worth as the gambling reporter. now, on to fast food or fast casual in focus at piper sandler which says it's taking a more cautious view of fast casual because of concerns over restaurant pricing power. dutch brothers got downgraded and then shake shack unchanged, from neutral -- to neutral from overweight and gave it a $114 price target. they say leadership has made notable progress on operational rigger and financial discipline but that pricing gets harder from here on out. snowflake down about half a percent in the early trade in morning despite shares being said to jump more than 40%. maintaining a buy rating at a

$180 price target. fubo continues to climb. in the early trade up about 14% and up some 55% over the last week. friday a federal judge ruled in fubo's favor temporarily blocking a new streaming service focused on sports from launching. that joint venture was created by warner brother, discovery, fox, and disney's espn and fubo calls that anti-competitive and promised to continue its antitrust lawsuit. fubo co-founder and ceo david gandler sits down with david faber at 4:00 p.m. an interview you don't want to miss, mike. >> all right. contessa, thanks so much. >> sure. the philippines is reporting its first case of mpox from a person with no recent travel outside of the country. the world health organization declared the virus a global public health emergency just last week. joining us now for more dr. scott gottlieb, former fda commissioner and cnbc contributor and serves on the

board of pfizer and illumina. we've heard of monkeypox. mpox is that renamed. it's been around for how long and what's the significance of this latest country where it's found? >> two different strains of monkeypox spread in africa that are endemic to africa. in west africa we see the strain that circulated in 2022 and caused the global pandemic and cases we saw in the u.s. what's spreading right now is the different strain, what we call clade 1 spreading primarily in the drc, the congo. there have been 14,000 reported cases, probably vastly understated because they don't have a lot of testing in place, about 500 deaths. the concern is there is a new variant of this new strain cac cac called clade 1b. 70% of the cases have been in children. about 85% of the deaths, there's

been about 500 deaths also in children inside the congo. so you start to think tipically we think this strain spreads through contact with animals. you start to think it's spread more through casual contact when you see so many children infected. that's the concern right now. >> what happened in 2022 when we started seeing cases that appeared to be spreading more easily through contact? >> the cases -- the clade 2 has been through sexual transmission spreads. it got into the gay and bisexual community and spread through there but this strain potentially is more contagious through casual contact so it's not airborne. it's spreading through contact but the question is, is it spreading more easily through contact. a lot of the cases with children in the drc are household contact, also spread within institutions and hospitals and health care facilities thatare overcrowded but worry about what

would happen if it got into an institutional setting, would it spread more easily. >> how dangerous is it? you mentioned the deaths in children but also a lot were spreading in hospitals where presumably people were already potentially quite sick and don't have the same health care in general. how dangerous is it, do you think, to people in general? >> historically, clade 1 has been more deadly than 2. the death rate around 1%. with 1 it's been 3% to 4%. those are statistics that encompass the world so that's what we see in africa and, you know, in a region with a better health care system the rate should be less and the death rate with 2 when it got into the u.s. was less. the other issue here is that the pox that you get with this new variant aren't as prevalent. they're not as pronounced as you see with 2. they're typically in the general region, so they're not on the hands and feet so people may have it and not recognize it as

easily as they would with the old variant. >> anything that can be done? >> vaccination, there's oral antivirals that can be taken that can reduce symptoms and risk of sequela. also vaccination. a vaccine is about 80% effective. you get two doses, higher than that, 79%. >> who makes it? >> they should have enough doses for the u.s. still hard to get the vaccine into africa. >> 80%. >> more than that. about 89%. >> i was going to as an aside what were those covid -- about 40%? it's in hindsight it's really weird to look at that. i think fauci has had it three times -- let's go to medicare. is it really 22% price control in the inflation today, the medicare -- we're going to hear a lot of talk about that of how great it is. >> the net savings are substantially less. the 22% net savings they claim they're getting on these ten drugs is based on 2023 prices.

by the time they go into effect in 2026, there would have been substantial erosion naturally so get to a net reduction that's substantially less than 22%. for some had heavy discounts in place probably the average net reduction right now based on the 2023 prices is like 10% and by 2026 it would go away, so what i'm saying is there's some drugs on this list that the discount that they extract is no different than where the discount would have been in 2026. i think pharmaceutical executives are reluctant to say that. well, because they want people to think they got a hit when they didn't. >> but on top of this in terms of deficit reduction and everything else from the inflation reduction act, there's something -- borrowing from peter to pay paul. >> they're buying down a premium increase in the part d increase that costs about $5 billion and didn't want that in an election

year and everything they did raise the premiums in part d offsetting with a subsidy. any savings they get when they do go into effect the seichings will go to pay for that subsidy and some. >> think we'll hear that at the dnc? >> no. >> go ahead. >> what they care about is the net out of pocket costs for the people who are trying to save money. they're not saying this will be a deficit reduction measure. >> that hasn't gone down either. they did pay down out of pocket costs. new restructuring of the benefit lowers that. if you're bringing down the net price, not the list price, people in the private market pay co-pays based on the list price so this law is actually going to incentivize drugmakers to launch at higher list price because they know there will be mandatory discounting and people underinsured are paying co-pays on that list price so that's the problem. >> also a tough thing for drug companies to say we have this

arbitrarily initial list price we set because we know it's going to get discounted. i think is your takeaway it's just basically impossible to kind of go after net drug costs in an effective way or is it -- just takes care of itself. >> look, i think net drug costs have come down if you look in the last couple of years. the problem is that goes to net spread. people go into the pharmacy and if they're understhoored or uninsured they pay the list price or co-pay based on that and the employer whoever is providing the coverage, the government is getting a much lower net price, really what should happen is the net price should be the list price, you should have true pricing in the marketplace. companies like cvs and others are trying to push in that direction but created this byzantine system we can't get out of. >> i think that there are entities that would like to go much further on this and is that the worry from the industry,

this is the first salvo and especially if we start putting price controls other places, it's going to be, like, why not? >> i think that's -- first of all, the discount on drugs that weren't heavily discounted like entresto, those are more. i'm talking about the drugs that already had a lot of discounts in place. the worry is cms has no formula. they didn't do anything that established a framework for how they'll make decisions in the future so could look at this this year and say, wow, there were these people on tv, so we're going to whack it another 20% next year and i think that's why everyone is trying to be quiet about this because cms could do whatever they want and that's the concern. >> mpox, what kind of virus is it? it's a much larger virus so it won't be aerosol. >> it would be very unlikely for it to mutate in a direction that would spread to aerosol. >> what kind of virus. >> orthopox virus, same family as smallpox but a large bulky

virus. it would have to undergo a lot of modifications before it could be spread through an airerosolid route. >> there's no gain of -- >> i don't know. we don't know what's going on in labs in china and other parts of the world that don't report and don't have good controls on what they do. certainly hope not. nobody should be doing data function research with a deadly virus of this nature. >> hopefully we're not funding it. >> we should be implementing a much more aggressive global regime to prevent this kind of dangerous research that we know labs are still doing. >> and not p4 facilities either. >> well, in bsl4 facilities but not even doing some of this research, the w.h.o. can't implement a global convention it's able to enforce. we have no global body able to

do that and chemical weapons convention. >> dr. gottlieb, thanks a lot. appreciate it. good to see you. coming up, former white house chief of staff bill daley joins us. "squawk box" will be right back.

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how that worked exactly, bill, but you were around, you must remember, it was crazy. >> yeah, i was 20 years old. my dad was mayor. >> your dad. >> interesting time in the country in 1968. my dad was mayor, yes. >> your dad was mayor and is it the same venue? it's going -- >> no, no, no. the actual convention was held in the amphitheater which was in the stock yard area. this is the united center, closer to downtown. the demonstrations, grant park, was where most of the violence took place and the challenges to the police department and to the demonstrators were in grant park, which many of the demonstrators this week are going to try to march to and express their opinions there once again. >> and just wondering whether -- it's a fine line, i know, that -- i was listening to how they're going to handle it and everybody is stressing that, you know, people are allowed to express themselves but i really think there will be a strong effort to keep it at a larger

distance from the actual dnc itself. do you know what the planning that's going into that is? >> that's all -- yeah, that's always the case, joe, whether it was in milwaukee with demonstrators for the republican convention there. now kept many -- maybe two, three miles away. the demonstrators want to get close to the convention hall. security officials want to keep them away. but they'll have plenty of opportunity to make noise and to demonstrate, express their opinions, but not challenge at the actual convention hall. >> kind of interesting because i saw that they actually had a meeting, bill, that -- it's not joe biden anymore. it's someone -- maybe more -- a little friendlier to maybe the cause, at least that's the perception and should we call it off? there's no way these demonstrators were going to ever call it off? the chance to go ahead and demonstrate, especially with the history of chicago and the dnc

and everything else, so it's full force, which is -- i don't know. i think it's kind of unfortunate but -- >> look, it's a right. obviously this is the focus on t all the media in the world. if you have a gripe or opinion, you want to express it this week. >> genocide to -- the stuff we saw on college campuses, there is no reason for -- to hope that goes forward uninhibited. that's totally unacceptable what was happening on college campuses. >> okay, you can't take what happened on college campuses and say that's what's going to happen on -- >> not exactly but it's the same people. >> that's apples and oranges. many of the same people and many others are coming either for more nefarious purposes or for some other gripe. there was a large march yesterday on the lgbtq community

and so i think -- these events attract lots of issues. now, the largest group will probably be the pro-palestinian anti-israel crowd, but there will be lots of others. trust me, there will be lots of others with gripes on the streets of chicago this week. >> fine line to try to walk especially with antony blinken over there right now and the whole backdrop. you know all these people. it's a who's who of stars of the recent past in the democratic party. who are you most looking forward to or you can't even pick you're so excited? >> i think it's going to be interesting, quite frankly, to watch president biden tonight really the last major event of his presidency and probably of his career will be this and then, of course, after he moves on, the vice president nominee

and the presidential nominee, vice president harris, will be the stars, even though barack obama and michelle and bill clinton and hillary will have prominent roles, it really moves from biden to harris/walz after tonight so there's a lot of stars speaking. there's a lot of people in town. a lot of energy. these events are very different conventions than they were 30, 40, 50 years ago. they're really four days of free media and attention and a positive message of whatever their positive message is that the party is spreading about the future, and i think the vice president will talk more about the future than the past, because that's what people vote on. they don't vote on the past. they vote on the future. >> bill, do you think that president biden is at all embittered by what happened, and i would expect that he will not -- that won't be on display during his speech because he

wants to be the -- now he wants to be the transition president and pass off the baton, but you know him. do you think there's any animosity about the way it happened? >> i would assume there is. he's human. and obviously it was not the path he wanted to have happen. so i would assume there is. that's just human nature. he will get over it. he is a pro. he's been around a long time. he understands politics as well as anybody. and the difficulty of it and the challenges of it. so i think he will -- i'm sure there's some of that feeling and surely by his family. again, understandably, but he's a good soldier and he will be there for the vice president and he will be there in whatever role they want him to be, and over the next six months of his presidency and with the challenges in the world that are somewhat out of his control, we're going to need a leader obviously over the next couple of months to focus on some of

these enormous challenges. >> right. >> in spite of a campaign going on that will dominate the next 3 1/2 months. >> right. actually i just saw it, 78 -- i got it to the second, bill. we don't need it. i have it to the second of when that day comes. i was actually just -- i knew you had been alive for 1968 but i didn't realize -- you were quite a bit older than i was which -- >> i was 20 years old. >> made me feel a little bit better about mentioning it to you. i wasn't really sure. honestly, i wasn't really sure. >> yeah. >> because you look good. bill daley. >> thanks. >> thanks. good to have you on. >> take care of yourself. >> okay. coming up we'll talk energy markets as we head to break, take a quick look at shares of estee lauder falling again after the full year profit forecast came in well beyond analysts' estimates and cited a more tempered performance in china. again, that was a long-term tailwind turned into a head wind. shares down 6%, well down from

the 400 their pandemic era highs and separately longtime ceo fabrizio freda announced pnsla to retire. "squawk box" will be right back. ♪ i wanna hold you forever ♪ hey little bear bear.

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let's check out the energy markets. joining us now, founder and director of energy aspects. i look at the price. set the scene for us. it seems like a pretty well-supplied market, crude and brent pretty close to bottom of their rank but a gentle range. so what are we moving on? what's the incremental swing factor here? >> great question. i thinkthe biggest driver right now in the market is demand, more so than supply. we have been through a period of weak chinese demand figures, we do think china should be bottoming out. the worst should be behind us but any incremental growth will be gradual. the u.s. economy, there's a lot of fears about a significant slowdown, we actually don't think the data warrants that kind of fear, if anything, at least for oil does look decent, china has been a lot worse. those have been the biggest drivers of both sentiment and prices.

the market at the prompt is quite tight. you can see that and the front contract is trading quite a bit higher than the second contract. we are drawing inventories everywhere but it is these demand concerns that is keeping a lid on prices, otherwise, i would expect prices to be higher. >> and presumably based on what you say we don't really have too much of any geopolitical premium in there at the moment. >> not a huge amount and also because pretty much since the russian invasion of ukraine we haven't seen supply outages. any time you have risk premiums we found a way to keep the oil in the market, be it by design like the u.s. government's designed its policy so you effectively have oil and gas mostly but oil. it's still hitting the market and i think that's why people have -- >> when it comes to opec, i know there's expectations of a bit

more supply, although i also am seeing things about how saudi wants to protect its market share so is that going to be something that holes the market in check? >> as of now, our balances do reflect opec plus bringing back balances exactly like they have said they will a little bit in q4 then gradually through 2025. ultimately they have maintained that they will only do so depending on market conditions. we do expect inventories and particularly key centers like the u.s. to end august at nearly record low levels adjusted for kind of demand cover so they do have space to bring some barrels back and i think they are going to at least through the q4 tranche. should the economy weaken significantly next year, that is a different story but as of right now i would say that, you know, the unwind is on track. >> all right. amrita sen, appreciate it.

ed jar -- yardeni will be up next. here are the futures. not a whole lot of action yet although it's all green. the s&p has turned positive. "squawk box" will be right back. why do couples choose a sleep number smart bed? can it keep me warm when i'm cold? wait, no, i'm always hot. sleep number does that. during our biggest sale of the year, save 50% on the sleep number limited edition smart bed shop now at a sleep number store near you.

box." more than 17,000 at&t workers across the southeastern u.s. are officially hitting the picket line. the union is accusing the company of not bargaining in good faith and sending negotiators who didn't have any authority to make decisions. the striking workers include technicians, customer service reps and wire installation workers. shares up fractionally despite this and take a look at what's happening to two major canadian railroads. union representing one served a 72-hour this is and could be off the job and cn rail saying it intends to lock workers out at the same time unless an agreement or binding arbitration can be reached. both would involve more than 9,000 workers. coming up, we'll talk about

the market week ahead. and then kamala harris' plan for the economy including a proposal for a ban on what she calls price gouging on groceries. >> price gauging. 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. at aes, our energy solutions have powered the world forward for more than 40 years. and as demand continues to scale, so do our solutions. introducing maximo - our new ai-enabled solar robot. max makes construction faster, safer and more cost effective than ever before.

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for more on the markets ahead of the fed's economic policy symposium in jackson hole let's bring in ed yardeni, president of ed yardeni research to help us wade through the noise and figure out what kind of speech should we be bracing for, and what do you make of the fact that actually the markets are still more dovish than the fed itself is in terms of the september cut. whereas we've been following quite hearing that from officials. >> the markets are dovish. expectations are 25 to 50 basis points for the september meeting. i think there's expectations we'll have 100 basis points between now and year end. i think it's going to be 25 basis points and one and done. timing is doing too well. people got freaked out by the last employment report but i think a lot was weather and some

of the other indicators came out confirmed that like housing starts. single family housing starts took a dive in the south. if i'm correct about that, they're going to get indicators before the september fomc meeting that suggests the economy is alive and well and the labor market is doing well and that inflation is continuing to moderate so i think 25 basis points is enough and i think that's what powell will probably communicate. it will be dovish but not as dovish as the market is scouting. >> i don't know if you have kind of an overall thesis for what's been going n. amrita has said it's been an industrial recession but not a consumer one which -- >> right. >> a lot of the typical signs that start in the industrial economy and tell us a slowdown are coming haven't worked because it's just been a slowdown post pandemic which makes sense. >> right. >> what does that mean for stocks? the short answer is they keep going up. but is it more nuanced than that? >> i think it is more nuanced.

i think the goods economy has been in a growth recession, but it's really interesting. we had this huge spike up in demand for goods by consumers coming out of the lockdown that lasted about a year and then rather than taking a dive, the demand for goods just kind of went flat and i think we're catching up with the upward trend we had before the pandemic so that's not so terrible but doesn't look very good when you look at some of the indicators for the goods economy, looks like a goods growth recession and services economy has been fine. there's -- technology now accounts for half of capital spending and that's been doing quite well. so all in all the economy i think is all right. >> do you just kind of stick with stocks broadly or try to tilt more towards big growth stocks and the ai names that became a bit overextended? you do wonder about nvidia. at some point the edge that they have gets computed away.

amd as well doing a deal this morning. i don't know if that tells us where exactly should people kind of go if they want the big gains? >> well, you know, if you're nervous about the magnificent seven there's always the somewhat less magnificent potentially magnificent s&p 493. there's a lot of stocks in the s&p 500 that have done actually pretty well, just not as well as the magnificent seven and i think there's still plenty of opportunity for the market to go higher as it broadens out. i'm not quite as excited about the small caps, midcaps because i think the excitement there was justified if interest rates come down a lot. but i'm not in that camp. >> let's pause on that for a second. do you think the people who are buying the smalls, the mids need the fed to cut more significantly? even if they did -- let's call it three cuts, is that going to be enough for those to work? >> it's enough -- well, i think

they've already discounted that quite honestly so it's only enough if the expectation is there's more to come. and i don't see that, so at some point here after the market broadens out to the midcaps, i think the large caps outperform again but not necessarily the magnificent seven. more like everything else in the s&p 500. >> all right. we'll leave it there but by the way if powell is more quote, unquote hawkish by talking the way you're talking and the market sells off you see that as a buying opportunity. >> yeah, absolutely and i think it will be less dovish than hawkish. >> ed, thanks. ed yardeni, appreciate it. >> thank you. would kamala harris' economic plan help or hurt the country? a debate on that next. we'll be right back.

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vice president kamala harris rolling out her economic agenda. let's bring in our panel. steven moore, trump economic adviser and heritage foundation senior visiting fellow and lindsay owens, groundwork collaborative executive director. i'll start with you, steve, because unfortunately both sides have sort of some what aboutism and i hear tariffs. we know tariffs aren't probably great but both sides think there are certain times when there's dumping or whatever where it's the only choice that a country has to actually do tariffs so you can actually have hard core austrian economics advocates who say maybe it's okay and hearing the same thing about certain

price controls. in your view are they always bad? i'm an absolutist there. i think there's shortages and econ 101, we know how prices are set, supply anddemand and it's a fool's errand to try to do price controls. >> you're exactly right about that. and i think what's -- look, you called it economics 100 and you're right and unfortunately, a major presidential candidate has endorsed an idea that would flunk economics 100. almost every economist would agree, i think all of us would agree that price controls have never worked. they certainly were a complete failure in the 1970s when we had major inflation that hit 11% and the government couldn't get rid of it. i think what's frightening to me is that you've got kamala harris now and all her economic advisers who are endorsing an economically dingbat idea, and this really calls into

question -- it would be like having a football coach who doesn't know anything about the forward pass. i mean, come on. this is basic economics and what wherries me as well is the whole kind of promise of the kamala harris agenda is sock it to businesses. the businesses are bad. profits are bad. we have to limit the prices that they're charging. well, come on, look. this is an investor show. without profits, you don't have businesses. without businesses you don't have jobs. this is just a real assault on the whole free enterprise system and it's troubling that you have a major presidential candidate that would endorse these thing. >> i'm going to get to you in a second, lindsey. what we heard about eggs today. there are -- it just seems like, steve, you could sell it to people, to the public by saying the pandemic was a sort of a one-off and there are things that were happening that would allow companies to gain the

system and keep prices -- right now there's avian flu, so you could see how companies would say, wow, this is my opportunity to raise prices. but in my view whatever is the extraneous factor, what does it, you're still going to dislocate normal supply and demand by putting price controls on and you're going to end up with shortages no matter what but are there times when you could do it? is there a way of where it's not a bad policy to institute price controls when there's something allowing companies to game the system? >> what's especially dangerous about the idea she's talking about grocery stores and 7-elevens. if you actually have -- you'll put grocery stores out of business. as you know they only have -- you put price controls they'll go out of business and people will actually have -- not have access to food which is a dangerous situation. the question, of course, is why they would endorse something so idiotic --

>> because it sells, i think. let me get to lindsey. that's what everybody is telling me today. people want something done. lindsey, people want secret done and this -- hold on. let me get to lindsey. lindsey, is it -- is that -- lindsay. lindsey, is there something to that? taking action and not really serious about taking it too far with price control? >> look, i listened to the vice president speech friday. what i heard someone who's lasered focused lowering costing for american families. cost of a roof over your head and food on the table and laid out a couple proposals. first thing she said she would do crack down on price fixing by companies like realpage. the data software company that let's corporate landlords collude on rent prices. not able to can do that under her administration.

second thing, a new federal price gouging ban on food and grocery. this is not price controls. 40 states have price gouging laws on the books. these are red states, blue states. idaho, texas. this is louisiana. donald trump did price gouging laws. he us yaoed the executive authority he had under the defense production act to crack down on price gouging of medical supplies during the pandemic. so this is a common sense set of policies. we need a new ban at the federal level on the books. but the reason she's proposing this is because is works. she successfully prosecuted cheaters after wildfires in california. we just saw the nation's largest egg producer convicted at a jury trial of price gouging. bird flu is a great example. it is ridiculous if your business model is to wait around for the bird flu and really gouge consumers to rake in record profits. by the way, this isn't about

bringing supply back online. at the jury trial what we found out about cal-maine, they were fanning the flames of the supply shortage. exacerbating it. calling the flock, exporting eggs to keep the shortage going here at home in the united states. i think harris is exactly right to be taking this on. by the way, if you're a company who relies on ripping off consumers, you know, you ought to be taking a close look at your business model, because this really doesn't speak well of you. >> does the invisible hand, ste steve, what a classic economist would take control of price gouging or disallows companies from being uncompetitive with their competitors? you can't run a business -- it's not going to work. not going to maximize prices by not having market prices. >> look, we have an example of price controls at the biden-harris administration,

that they've put on. with pharmaceutical drugs in medicare. guess what? we just have a study coming out we estimate as many as 1 million seniors will lose their drug coverage through medicare because of these price controls. it's a perfect example where price controls actually hurt the people that they are supposed to help, but, look. she's talking about price controls on grocery stores which have these tiny margins. and if you look at what has happened over the last three and a half years with the consumer price index. it's gone up exactly the same amount as the producer price index. so that is to say, stores and's companies are charging more, because their costs are higher. why are costs higher? because joe biden and kamala harris engaged in a $5 trillion spending spree printing money and that causes inflation. it's not complicated. >> lindsey, there are -- there has been a lot of inflation,

and, you know, maybe steve's wrong. maybe it wasn't the money printing, maybe the pandemic or supply chain or whatever it was, but if we had capped prices in, i think they're up 20%, a lot of different prices. do you think it would have been, there would have been negative consequences to disallowing those companies to charge what they needed to charge, to keep up with producer prices? historically, have you seen instances whether you want to talk venezuela or talk the nixon price controls. whatever you want to do to go back in time. have you seen where that has been bad policy and it's not as simple as just capping prices? doesn't work that way because then there's a black market and rich people can get the goods somewhere else and the poor people end up eating kittyvenez.

they ate their pets, lindsey. >> nobody is talking about price controls. we can do that some day over a drink. what's proposed here is price gouging. common sense legislation many states use. i don't think arkansas is venezuela or texas or idaho are vene venezuela. these are common sense. you're a company, you can't rip off consumers. can't use the pandemic or a period of high inflation as an excuse to run of the score. by the way, this isn't sort of a case of just a few bad apples. i challenge you to get a single aisle in the grocery store without finding a case of price gouging or price fixing. there are current cases of price gouging and fixing in eggs, in sugar, in frozen french fries. in poultry, in beef, in milk. so i think it make as ton of sense for the vice president to bring her prosecutorial eye to

this particular issue, and i think she'll be quite successful. again, if you're a company who doesn't make your profit, doesn't depend on ripping off consumers, on frustrating consumers, there's nothing to see here. have another cup of coffee are and head into the office. if you're a company who depends on price gouging, taking advantage of the bird flu to make a profit, yeah, get into the office are and work on regulatory memos you'll have a lot of troubles in a harris administration where she's going to crack down on cheating. >> the calamine lawsuit from 2004 to 2008. 15% of the market. not something that happened past couple of years and involve ared customers on an industrial scale. any american can get chickens and eggs that way. to your point about grocery stores. is it the grocery stores who are victims of what wholesalers are doing? you mentioned french fries and

the others, or are the grocery stores the bad guys here? >> no one is painting any one industry -- >> if it's such a great business, a monopoly business why don't i open a grocery store and capture the wonderful profits that exist? isn't that how it would be competed away if the real thing? >> the vice president was quite clear she wants to help smallgrocers get into the market and them to be more competitive. we talk about thin grocery margins, but according to the council on economic advisers grocery margins are at a 20-year high. there is room nor grocery margins to come down and folks to pass along the savings to consumers at the checkout line. >> steve, can you -- go ahead, steve. >> have you ever run a business? i mean, i'm sorry. -- this is how to run their businesses and never actually run a business before, have no idea what they're talking about. are we really going to have

federal regulation, police running down the aisles in grocery stores telling owners what they can charge for prices? what is this? the soviet union? >> but this isn't about the federal government stepping in and running businesses. this is about the federal government doing exactly what they're supposed to do in markets. setting clear rules of the road so that all of the actors know how to play by the rules and can play fairly, and when there are bad actors cracking down on cheating. this is really classic behavior here. this is exactly what the federal government is supposed to do. this is why we have consumer protection laws, and it's great to see the vice president taking a stand. >> we do have consumer protection laws, and when, you know, the -- when trying to decide objective rules about what's ripping off, what's a fair profit margin, going state by state and say, eggs are fair at this price here in minnesota but not fair at -- it's -- i just are don't -- we have such a

good system now in terms -- >> exactly right. why we need a federal price system. makes a lot more sense than going state by state in this case. exactly right. >> steve? i think you're breaking up. we're out of time. got to go. lindsey, thanks, steve, thanks. mike, thank you. anytime. coming up, diving into tech stocks heading to the break looking at this morning's movers on the nasdaq. "squawk box" will be right back.

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just after 8:00. two minutes past 8:00 on the east coast. you're watching "squawk box" on cnbc. i'm joe kernen an with mike santoli and kelly evans. becky and andrew of off today. we need to actually put up the 78-day -- yeah. i keep checking. i keep checking. we need that, but we need pence on the -- it's coming. it's about 11 weeks, i think. about 11 weeks. right? among today's top stories, semiconductor buying zt systems for $4.9 billion.

looks to strengthen its a.i. capabilities, and compete more effectively with nvidia. amd, ceo, abc, de -- amd ceo lisa su. a lot of letters. like alphabet soup. joini ing "closing bell: overti" later today. don't miss that. and hair and makeup product company estee lauder shares down following fiscal year results. forecast well below analysts estimates that cited a more tempered wormens in china. hear that a lot. the company's long-time ceo is retiring. and the japanese owner of 7-eleven received a preliminary takeover offer from a canadian operator. circle k convenience store.

the proposal. not exactly clear. biggest to ever face a foreign buyout. >> makes sense, too. >> absolutely. under 90 minutes to go before the opening bell on wall street. contessa brewers joins us. >> personal computers in focus. morgan stanley downgrading hp2 to equal weight leaving the price target unchanged at $37 saying all upside are predicted last year are bakeded into the share price and sees slightly weaker than expected demand in restocking personal computers and back-to-school sales. though morgan stanley remains bull number general or pcs. sharing moving in the extending trading down 2%. burlington stores, upgrade from h h haskett. reporting end of the month, reports from macy's, nordstrom, tjx and roth.

haskett reports winning with consumer looking for value. seeing burlington sharing up more than a percent in the extended trade, and pieper sandler downgrade in fast casuals is hitting shares of shake shack, dutch brothers and sw sweetgreen. down gragraded. dutch brothers down almost 4% and shake shack down 2.5%. analysts are skeptical whether these fast casual restaurants have any menu pricing power in the sector this fall. mike? >> yes. a big move to the upside on results giving some back. thank you very much. tech stocks drew attention of the world's largest funds in the second quarter according to regulatory finds. lots of profit-taking and new positions in the area. joining us now is tony wang, t. rowe price for the follow yo manager. great to have you on. among several things

contributesing to the pullback in mid-july. yeah can, a scare in the broader economy. obviously clouding positions in areas. also a re-assessment of the near-term probabilities for a.i. stream putting a big premium on now. how do you navigate things? still have nasdaq and semiconductors farther off highs than the broader market. >> yeah. i think it's the question that everyone's trying to wrestle with. one hand is this really strong secretary secular growth of a.i. other hand, expectations raised over the last two years, really, what a.i. can do. right now i think the market is figuring out how sustainable of these levels at the hyperscale players, that they're doing. so far no one is blinking. they all continue to spend, but i think that the market's very sensitive in terms how the macro is shaping up. businesses are getting worse,

capex, along with, like, people looking for points what is the roi in the enterprise? i think a lot of times the enterprise takes a lot in time to really change behavior and get tech ready for a.i. it's not as simple as flip the switch. so i think we're trying to balance those two in terms of where capex can go and the sustainability of that. >> when you look at a stock, let's say like meta. a time when it decided it was metaverse investment. changed company name. treat hated it. cut back on plans became more efficient and the a.i. opportunity comes in and's they're front of the line investing heavily in this area and the street kind of loves it'sat this point, anyway. looking at a stock like that, what are the metrics for where and when the payoffs happen and are you pleased with what they're doing there? >> yeah. i think you have seen that the meta team has continued to be

nimble and re-assess what's going on in the market. i think that they have been spending a lot in reality labs, pivoting spend at least to a.i. positively received. i think that what they're doing with open sources, interesting, competitive play with chapter d closed. we're looking at, probably like where, you know, is the ecosystem building around llama and meta's strategy here and what are we seeing in terms of the r line and start-ups like, they can get llama for free. i think that's an interesting aspect in terms of seeing start-ups making strong roi with their apps and i think how meta then also denigrates llama into its products, efficacy, making it so they can ride a strong return on investment grew integration and usage. i think what we're looking for

as well. >> we have been talking about this, modest-sized ak bcquisiti amd brought up. market's been incredibly willing to give a big premium to nvidia. earnings have been there. the average semiconductor stock not as well positioned hasn't done as well. are you kind of surveying that area for what's been left behind or is it just go with the proven winners? >> yeah. absolutely. i think the opportunity has grown really big. i think there can be more than one player. we've seen google has their own custom. again, nvidia continues to do well. amd also has a strong road map that consistently they're building out. i think that the market is expanding. we're on an exponential demand curve. companies can deliver and likely have a good piece of that. so i like the amd acquisition so far and what they need to do

essentially provide more data center system instead of just single chips. to me that makes a lot of sense. the team, and led by lisa, doing an extraordinary job and i look forward to seeing progress in gps as well. >> we'll look for that. tony, appreciate you helping us start the week off. >> thank you. all right. coming up more on the democrats' big week ahead in chicago. speaking with illinois congressmana krishna kri krishnamoorthy. stay tuned. you're watching "squawk box" on cnbc.

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convention kicking off today in chicago. megan casella is there joining us live for a little preview and mib in some ways things are

already under way. hi, megan. >> yes. good morning from chicago. tens of thousands of democrats across the city waking up for the first day of the democratic national convention. all action the next four days taking place in united center just behind me typically home to chicago you bulls and blackhawks this week home to the democratic party. tonight, president biden headlining events tonight officially passing the torch to his vp as the nominee and a who's who. two former presidents in bill clinton and barack obama and others. republicans will counterprogram this all week long. president trump and senator j.d. vance across the country in battleground states holding rallies and kicking things off in pennsylvania. two speeches meant to be focused on the economy. the economy in focus for both parties. harris released her plan friday. talking about that a lot this

morning, just overnight democrats released their 92-page economic platform. on the economy here a lot of the traditional democratic talking points vowing to invest in infrastructure, manufacturing. say they're support small businesses and unions and level the playing field by cutting taxes for the middle class and raising them on corporations and the wealthy. so nothing we haven't heard before there, but interesting is just how closely this final platform now is, resembles the one released under president biden released earlier this summer before that debate and while he was still atop the ticket opinion almost word for word exactly the same. a couple small changes, supporting the postal service and things like that. it's how closely vice president harris will stay to the biden agenda. she can't criticize the administration she was and is a part of but trying to set a tone for herself and polls show voters want to see at least some distance created against

president biden's less pop ular policies. we'll see how much harris is trying to set a new tone for herself. >> as much what happens outside the arena add indoors. large-scale protests and to what extent they steal the attention and force anyone there including harris herself to address them and the way she chooses to do so will be closely watched. >> absolutely. expecting 20,000 to 25,000 protesters across this city. not a huge amount when you consider the syce of chicago and compared to going to a taylor swift concert. they're ready for it. layers of security to get where i am now and more getting into the doors and on to the floor. we are going to have to watch what those protesters are doing and how much they not only impact the programming here burt also their response. from as you said, the candidate herself. >> for now, thanks.

appreciate it. megan casella. joining us on the democratic consequence and vice president harris' economic ideas, former s.e.c. chairman jay clayton. now independent chair at apollo and cnbc contributor. how ya doing? >> doing well. good morning. >> good to have you. good morning. we are in, i still think, the honeymoon period, which is probably likely to ramp up as it does usually when either party has a convention. have you been surprised at the level of enthusiasm among democrats that vice president harris has been able to -- >> i'm not surprised there's an uptick ought i am surprised at the level of enthusiasm. including around the economy. >> the weight lifted off the average democrats' shoulders when joe biden finally stepped aside. it's palpable how much that was weighing down --

>> sure. look, we talked about it on this program. >> you didn't know it would be like this. this is staggering. a whole con ingant of democrats that didn't want biden to leave worried about who his -- they, in fact, were saying it was going to be an open convention. some saying that, because they didn't want vice president because they thought she would be a drag on -- can you believe the way things have turned and how did it happen? >> i think the, we've had, like much on the program this morning. economic messaging, it is the number one issue. it's the economy. it's the border. it's the -- >> people have already forgotten they hated the economy. >> look, that's genius marketing. right? it's a change in the leader. forget the icon canic problems. >> day one, it was january 21st, 2021. >> can we back up and say, you know, where do we really stand and what should we look for in terms of economic policy? >> i don't know. will you do that today finally?

>> yes. >> good. i've been waiting for it. >> there's really good news for america, which is america is in the best place in the world, the best economy. coming out of the pandemic better than anybody else. there's really bad news. we have had a bout of extreme inflation. if you had a $100 grocery basket, $120 more. increased debt by 125%. those are both really bad things. evaluating who will have the better economic plan it's who's going the take the strengths and's address those weaknesses. what i'm hearing is blaming grocery store owner and others for the economic problems. that's now how you -- >> does trump, and his advisors, do they know how to take the right message? or is it going to be tariffs? how are they going -- either side seems to -- >> what i think the right message is and why i expect that

the trump message is going to be more appealing when you look at it closely, which is, where does growth come from? growth can come from a couple of things. energy. if we have lower energy costs, that's going to reduce the impact on consumers. also going to foster growth. if we continue to be tech leaders are. tech leaders, get the benefitof growth around the globe. only have 3 60 million people. there's 8 billion around the world. hooked in we benefit greatly. we're better allocated capital than any place in the world. we advocate over 50%. focus on that and competence in government, that's how you get real wage growth for the people in the middle, 80% of the economy. this idea that you're going to go out and sort of say some prices are good, some are bad. it's lunacy. >> so you're at oh p at apollo.

>> i'm here at me. >> you are. but your background is in antitrust. if you could unequivocally say president trump would be 120% from lina khan, something you could sell but you can't say that. you don't know what his antitrust stance would be and j.d. vance, some say he's said friendly things. >> it's pretty clear if you go back to 2016, to 2020, the approach to merger regulation in the u.s. was more pro-growth than it is today. >> although personal animosity towards a ceo could preclude a merger being okay. >> let's just -- stipulate that's not going to happen. okay? >> oh -- okay. but you know what i'm saying. so inflation. do you think tariffs across the board? do you think that's going to help with inflation?

>> what's really testing is that the tariffs put in place in 2016 to 2020 are still there. so the people who have had their hands on the wheel the past four years -- >> talking about even more. former president trump. >> let me give you a way to look at that. what he's saying is, if other countries are continuing to use tariffs or other measures for unfair competition, he's going to respond boldly. >> okay. let me -- mike brought this up earlier. inflation's been bad. there's nothing wrong with selling a, some type of remedy as gestures, as warped as it is. >> on this, jaw bone it. >> we're not serious. >> not an argument even if the practical policies, first of all, aren't enacted. >> a lot wrong with it. if you're saying something other than that caused inflation is the problem, that's not being candid with the american people. what caused the problem? a pandemic and

unprecedentedistic iffal spending opinion those two things. >> and they'll say inflation was very similar, path of inflation similar and they didn't have the inflation reduction act in other countries. >> the u.s. spending drives global prices. okay? like -- we were really going to say that inflation in finland is the same and therefore it's all the same? that's it absurd. >> what does the market need to do policy wise? practical. what government going to look like? joe has me focused on betting markets. one in four chance sweep of any kind. trump tax cuts are expiring. something has to be done. extend them, modify them, do something. something that i think nobody's really talking that much about. >> no. because -- what did we learn in the trump tax cuts? what were the good things we learned? we made u.s. firms more competitive. we had a competitive disadvantage around the globe

because of our tax policy. by changing the tax policy on businesses, repatriating, things got a lot better. certainly we shouldn't go back. even though other global competitors would love to see us go back. mike, i think one thing is really clear. i don't know how much room we have left on the fiscal side or on the revenue side. i don't think significant tax increases are going to increase percentage of revenue as a percentage of gdp. >> expiring, because they would continue to -- cost us revenue? you had to do that accounting at the initiation of the law. >> but the cbo had it wrong. we got more revenue than expected. we did. >> lower than it has been historically. just slightly, the margin. but how -- what are they going to do? that's the real question. again, move on corporate? depends, is it harris -- >> the ansel growth. right? we are in a fiscal and monetary

box. not much more we can do. got to find growth. look at the industries where there's growth, and foster -- >> we're hearing that -- gdp under biden has been higher than under trump. so -- >> well, wait. but -- >> and they won't connect the dots to the amount ofistic iffal spending -- >> take away harris and december 2020, still have $4 trillion in excess spending. that's a lot. >> keep going. so -- >> doing okay here, joe? >> you're doing better for me today. why i haven't timed in. haven't had to say anything. i get tired. only back two hours and's i'm exhausted already. >> where is the growth going to come from and in the growth, real wage growth. after tax, people are better off. right now after tax people are clearly worse off on their wages. >> it's possible now, can you go through another four years of how bad corporations are for everything? and really the root of all evil?

i don't no if i could, could be eight years. >> unless in office -- >> didn't change in the last four years. >> you make a great point. there is a view in washington that to help the consumer you must hurt the corporation. to help the investor, you must hurt the corporation. that is absurd. the whole -- >> the only jobs you hear from the government -- >> we set up a really great system, supposed to do both at both agencies. s.e.c. where i was, facilitate corporations and protect investors. not a trade-off. the idea merger policy. got to prevent mergers in order to help the consumer? i mean -- grocery prices in this country have come down dramatically over the last 30 years as a result of consolidation. doesn't everybody love their walmart? al doesn't everybody love their

costco? >> can you come back tomorrow? you've done -- you've turned me around today. >> that's going to make a lot of people unhappy. >> you've been amazing. what are you doing tomorrow at 8:15? thank you. >> appreciate it. coming up, deadpool dethroned in the box office. telly when premiere finally took down that superhero and its buddy wolverine. another big week from the fed. expecting more from jackson hole and speaking with under secretary and hoover institution senior fellow john taylor about his expect aceations for that. stay tuned. you're watching "squawk box" on cnbc. indeed! everyone 45+ at average risk should screen for colon cancer. these folks are getting it done at home with me, cologuard. cologuard is a one-of-a-kind way to screen for colon cancer that's effective and non-invasive. it's for people 45+ at average risk, not high risk.

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to healthcare. >wolveri knocked off the top spot.

"alien: romulus" took in more. "deadpool" still earned $29 million domestically well over half a billion in u.s. ticket sales. late last week became the top-growing film of all-time dethroning the "joker" movmovie although the sequel is coming in november. and cut it and acid goes through -- you know, the different floors of the -- the station. i don't know. i mean, that is -- that's timeless and classic. sigourney weaver, horror on her face. when filming, how do you get, what do you think about? shelley duvall? the look you had when i walked in this morning? no. coming up, illinois

democratic congressman raja krishnamoorthi as the dnc convention gets are to kick off in chicago. can't hear you scream. you know? that face. first check out crude prices. you're watching "squawk box" on cnbc. ( ♪♪ ) morgan stanley is partnering with the women's tennis association to remove boundaries... ( ♪♪ ) because this game is for everyone.

the stromo. the name of it. welcome back. right, mike? i nastrome oh. the name. now up 16, 17 points on the nasdaq. dow jones industrial up 10 and s&p up 3, but by end of the day could be up 400 on the dow. there has been -- >> that would just be a 1% move. >> right. among the top stories consumer in focus again this week. set to get retail results from a number of bellwether including target, macy's and lowes following last week the results

from others, and a federal judge ruled in fubo's favor blocking a sports streaming service from warner brothers, discovery fox and fubo called it anti-competitive and promised to continue its antitrust lawsuit. fubo's co-founder will appear on "closing bell: overtime" at 4:00 p.m. today. and kicking off today in chicago, the democratic national convention. vice president kamala harris will accept her party's nomination on thursday. speaking of the dnc, in chicago, bring in democratic congressman raja krishnamoorthi representing the district in illinois northwest of the chicago loop and ranking member of the china committee and oversight intelligence committees, great to you have with us. good morning. >> hey, good morning. thank you. >> i don't know where to begin. where is your attention going to be focused in terms of the dnc this week as we suggested

earlier? is it on the protests and how they're handled? is it going to be on the message we hear? just hearing from the president himself, perhaps, and how he's, you know, articulating the moment this week? what do you think? >> i think tonight's going to be a celebration of joe biden and real gratitude for him for his service to the country and as he said in his kind of farewell address, if you will, from his office, oval office, you know, he greatly reveres the presidency, but he loves his country more, and i think people are really going to express their gratitude tonight for what he did recently, in paving the way for the next generation of leaders to take charge of the party including kamala harris. that's one moment. another moment is, of course, kamala harris herself and her speech on thursday night to a nation that knows her but doesn't know her well, and so i think that she's going to have a chance to make another

impression. a first impression a second time, and i think people are going to be excited to hear her speak. >> what should we know about the preparations for chicago itself? you know, there's so much made of whether the city was ready and what's been going on with crime and so forth. you know, you know better than anyone kind of the area we're talking about and a lot of what's going on there. what would you say? >> i think that the city's ready. law enforcement is ready. there are multiple layers of security throughout the city. i think that, i expect the convention to go off without a hitch. i also hope that people really have a chance to enjoy chicago, which i believe is the most beautiful city in the world. especially this time of year. >> no way! >> really -- >> no way, congressman. >> people are really going to have a great time. >> no way. you homer -- that's me, joe,

yeah. no way. >> come on, man! you love chicago. >> i like -- i mean -- >> really. >> most beautiful city in the world? come on. have to go with san francisco, probably. >> oh, my gosh. >> tie that to -- >> i disagree. >> tie that to the vice president. or -- new york city. maybe not. times square. sorry. go ahead. we digress. yeah. i can't let him just -- i mean, there's going to be so much swinging of this type of stuff over the next four days. we're not going to let you just do it here, congressman. i let you go, say how willingly -- >> chicago, we're going to treat you right, man. come to chicago. it's on me. >> i didn't say a word our graves the president wand willingly stepping aside. i let that slide. i can't let the chicago comment go. >> well, i challenge you to come to chicago. >> i've been there. >> in the near future and let's

see if you don't feel that you had a terrific experience. >> no. i like it. i just don't think it's the most beautiful. >> i was in chicago three weeks ago. >> is it the most beautiful city in the world? >> it's a beautiful city. >> most beautiful in the world? >> i haven't been to every city in the world. >> the most beautiful city in the summertime. >> it is. it is. >> hard not to talk china at this opportunity. trying to stay dnc and chicago. but i look at it and think it's this major strategic issue that is getting -- we don't even have a, a carrier ship over there right now. aircraft carrier? right? they're all over in the middle east. the defense people are concerned that they were totally unprepared for handling multiple major conflicts at once. given the position you sit in and not to get too serious here, just what do you think the american public needs to know right now? should we are concerned about some of these developments and

whether we're ready for any kind of flameup in tensions with china, or no? >> we're ready but have to do more. i think that the fact of the matter is, i believe that it's important on a bipartisan basis that we do everything we can to deter chinese communist party aggression, whether military, technological or economic, with regard to any kind of military aggression, we have to work with our allies, partners and friends in the region, which is perhaps the thing that the ccp fears the most. and i feel we're prepared but need to do more and we need to do it faster, because the ccp is also increasing its capabilities as well. >> yeah. that aside. the article in the "wall street journal" sums it up today, how china became a car money pit. shares from 400 to 80 or 90 on back of this china benefit now turned into a headwind and so many companies in the latest

quarters talking how far down sales are in china. what explains that? >> the chinese economy is tanking. that's what's really explaining the situation. the fundamentals are bad. consumer confidence is drying up. you know, i think that at this point the large sectors of the economy are on the verge of deflation, and they have a demographic disaster looming as the country ages and its population is shrinking. so on top of all of that, the ccp is continuing to exercise stifling control on the economy. and so that is fundamentally why companies, not only foreign but also domestic, are suffering right now in china. >> but i hear that and i think stifling control on companies sounds a little like we might be hearing, you're a part of a little of what is -- >> wait a second. that's a cheap shot. >> just a little, a little bit. you know? i feel like if that's the end

goal do we want to even tiptoe in that -- not the end goal. the end outcome. do you want to tiptoe in that direction? rchltsz hold on. i think all of your viewers hopefully believe in competition and proper functioning of markets. that's really what we need to always be keeping an eye on as the government, which is make sure that there's proper competition. lots of competitors. which obviously creates more supply, lowers prices on most goods and services. >> what incense vices anyone, what price you can charge and whether you can make profits? >> we should always allow for profitmaking in a capitalistic system. the question is do we have a situation where we have monopolies or we have price fixing or price societying. that is a role for government address. >> i don't know how it knows that level, though. what do you say? 8% profit is okay, 9% is not?

9.8 okay but 11.1 is not? who's to say? >> i think this is something that we obviously find out in the process of investigating certain situations. you know, as one example, when prices go up, say, by 20, 25% but costs have gone up by much, much less or even dropping, you know, for those particular companies in that industry, well that might be an issue of you know, monopolistic pricing. >> competitors take that and say, okay. i would. if i were -- great anent entrepreneurs, an opportunity, i'll take that. >> ababsolutely. no barriers to entry erected buy industry participants. as many erngntering the industr. what i saw as a small business owner, small businesses are often prevented from entering

industry and providing the competition we need to lower prices ultimately. >> we know how to do it, congressman. i know you know that. make sure there's no monopolies and price faxing and no collusion, but one way we know is not the right way to do it. we just know, and we're proposing, and your party proposing again, that's price controls and wage controls. so -- if you're going to let supply and demand work got to threat work. it's weird we're revisiting that again after seeing a historical record what happens when we do that. >> i think we absolutely want to the avoid some kind of price control situation, but at the same time, we don't want, you know, a situation where we have monopolistic practices -- >> that's different, though. >> unfortunately we see that in certain places. >> right. okay. >> congressman, thanks. nice to have you on. >> it's nice city.

you could say one of the nicest in the united states. how about that? because i -- i don't want -- >> clip that and send it around. i want that viral. >> fine. i'm not bringing up paris or rome because i'm american first, but -- definitely not nicer than paris. is it. >> i think consensus would say no, both ways, but -- >> wow. out on a limb. >> rome? coming up, the fed in focus. central bankers getting ready to gather in wyoming after break talking where monetary policy stands with the hoover institutions john taylor. stay tuned. "squawk box" will be right back. good thing i had aflac. (aflac duck) hmmm the cash i got from aflac helped pay for medical expenses, groceries, rent. it really helped close that gap. (whisper) go, go, go! (group) yay! go aflac! go duck! get help with expenses health insurance doesn't cover. find an agent. get a quote at aflac.com.

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of live events. this is how business goes further with t-mobile for business. central bank earns from around the world getting ready to gather for the kansas city economic sim ymposium in jackso hole, wyoming. and saying the fed needs to take

a gradual approach to lowering costs daly saying economic points given more confidence inflation is under control but pushed back on economists concerns that the u.s. is heading for a sharp slowdown that would mean rapid rate cuts. also minnesota fed kashkari sai inflation has made progress, the labor market is showing some concerning signs. he said he doesn't see any reason for the fed to cut more than a quarter of a percentage point at a time. while daly is a voting member of the fomc, kashkari is not this year. let's talk about what we should expect from fed members in jackson hole later this week. joining us now is john taylor, senior fellow at the hoover institution and economics professor at stanford. he's a former undersecretary for international affairs at the treasury department. it's been a while since we've seen you, professor. good to have you on. >> good to be here.

>> we do talk about you. i don't know whether your ears burn. we especially recently, with the taylor rule or just a rules-based system for the fed, every couple of years, it seems like you start -- we start talking about that again, either after a perceived mistake by the fed or just the notion that flying by the seat of your pants might not be the best way to run the world's largest economy. but others have argued that some intuition might be just what is needed in these changing times. would you say the fed's orchestrated this pretty well, navigated through this pretty well if we do, indeed, have a soft landing? >> i think they got behind the curve a couple years ago and a little catch-up, they're okay where they are now, but they got to raise a lower a little bit, that's for sure. they're okay at this point, but remember when they were very low before, and that was really a problem.

we got -- had to get interest rate to 9.1%, and so we're now in the realm of possibilities. >> what would the taylor rule have dictated when they stayed too long at zero? would it have solved that? would that have been -- would it have been unable to do that if the taylor rule were in place? >> it would be an ideal way to go about it. maybe it would have been 3%, 4%, at this point. you have the target for inflation rate, which is universal now, 2%. it's discussed by the fed, by the chair, and by others, and so that's really where the focus is, and then you got upper real rate above that to some extent, could be 4%, but really remains to be seen how far above it will be, but i think 4.5, 5% is where we're going. >> and what do you expect to hear from chairman powell and jackson hole?

>> i expect he'll be in the mode of somewhat lowering rates. it's been high for a while at this point. he's been sportive of that, but we'll see. it seems to me it's most likely to be a little bit lower, and we'll have to see. it -- it's very important at this point to take the global situation behind us and think of what's happening in the earlier discussion of china and russia and other parts of the world, don't forget africa, don't forget latin america, so there's a lot going on around the world, which we have to get to 2%. the 2% is the goal which the fed has established and other central banks have established. it would be ideal if we moved to 2%. that's the taylor rule. >> do you worry about the independence of the fed and maintaining that through administrations? >> i'm not really concerned about that at all at this point. people could be different, but it seems to me jay powell has

the right mode at this point, and he's in charge. he's not the only person, of course. there's a whole committee. and there's other people commenting like me and you, so there's a lot of things that are going on, but i think it's very important to put this in an international context, and don't limit it just to the united states. it's one of the countries in the world that needs to be focused on. do you think the president of the united states should have a say in where interest rates are set? >> i think this is really the -- we've got accustomed to the notion that the fed has the decision. the chair and the others -- members of the committee. they listen to other countries. that's for sure. and they listen to the president. but i think the main thing is that the hands of the federal open market committee and the -- they didn't do a good job two and a half years ago. they're pretty much where they should be now, a little bit lower, i think, would be ideal,

but it's really a question of what -- where are we going to be going forward? and i think it's got to be lower at this point. don't forget, we want a higher growth rate. we don't want this 2% growth rate. we want a higher growth rate in the united states. >> right. okay, they tell me we got to wrap up. i was going to ask you, do we need an additional law on the books about colluding or about taking advantage of market conditions to gouge or to game the system? do you think we need -- did that play into -- corporate greed play into the recent bout we had with high inflation? is that a new law we need on the books? >> i don't think it's new. i think, basically, what happened a couple years ago was the fed got off track, and they're now pretty much back on track. we forget about that, should be more mention of that. i mention it a lot myself. i think that's the first thing, but then we have the rest of the

world. don't forget, this is a global economy, and what's happening in europe, what's happening in other parts of the world are very important, so we need to put that in the right context. i couldn't emphasize more that this is a more of a global situation. we need taylor rule for not just the united states but for other countries as well, and other countries are adopting it as well. >> great. okay. professor taylor, thank you. appreciate it. programming note. don't miss the big lineup of fed guests later this week from the jackson hole symposium. >> looking forward to that. coming up, new layoffs hitting gm. we'll bring you all the details after a quick break. stay tuned. you're watching "squawk box" on cnbc. 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.

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breaking news, cnbc has just learned that general motors is laying off more than 1,000 salaried employees globally in its software and services division. that includes roughly 600 job cuts at gm's tech campus near detroit. in a statement, the spokesman from gm didn't confirm the number of layoffs but said the company is simplinfying "for speed and excellence." the shares are up about 0.25% this morning. let's get a final check on

the markets before we hand it over to "squawk on the street." we're seeing not a lot of action, and jackson hole could determine what events happen. we have the dnc getting ready to start in earnest. we have gone up a little bit as the premarket session is going on. you're back one of these days. >> maybe i'll see you wednesday. in the meantime -- sorry. it's an alarm for a show. >> you're on all day long. make sure you join us tomorrow. "squawk on the street" is next. ♪ good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer at post nine of the new york stock exchange. faber has the morning off. futures are steady after the best week of the year for the dow and nasdaq. jackson hole ahead, the dnc, retail earnings, some benchmark revisions to payrolls.

our road