that had already been put in by skydance media. i'm told by a source that that bid has been increased this morning to $5.5 billion. the bid from bronfman jr. national amusements is the holding company that holds a controlling interest in paramount global. it could be that this bid even goes up from here so it sounds like it is game on when it comes to this and we'll continue to watch and see what happens with it. all right. that does it for us today. see you back here tomorrow. right now it's time for "squawk on the street." good tuesday morning, welcome. i'm carl quintanilla with jim cramer. we'll hear from faber momentarily. the s&p and nasdaq going for their ninth straight gain today. the longest streak for the s&p in some 20 years. >> oh, my. >> as we're about 1% from all-time highs. s&p, nasdaq and the ndx aiming

to extend their win streaks. nvidia leads the mag 7 surge even though the rally has been quite broad. lilly says its weight loss drug cut diabetes drug by 94% in a late stage trial. david ricks will join us later this hour. let's begin with the market and the rally. a lot has been said about even though the volume is low, the breadth has been pretty impressive. >> yeah, look, there's -- we're seeing buybacks, record levels. we're seeing big inflows, a lot of people feel that they don't want to miss anything ahead of when the fed starts cutting and that's very much the way it's always been, however, i do think that we are now the most overbought we've been in a long time. we are plus 7. my discipline for the investing club is it doesn't matter. you have to sell something. try to sell your losers so that -- don't subsidize losers with winner sales but i would

point out it's not too good to be true but there's just an endless parade of things that you'll take a look at the lows. lowe's will be a big miss and just presume -- figure how much up it will be even though it's a miss. >> yeah, we'll get to lowe's in a minute but 52-week highs for utilities, staples, health care, s&p financials all-time high equal weight s&p all-time high. >> well, i mean, look, this is stuff -- this is pretty historic but we want to ask how negative people were coming in and if you go back, this started with that collapse of our market because of the japanese collapse of 12%, and that turned out to be not a good reason to sell. better reason to buy and ever since then we've been buy, buy, buy, september is historically a weak month. we've got -- there is a convention on and in the convention they're all calling for higher taxes which is not good for the stocks.

stocks are oblivious but came through earnings season and turned out pretty darn good. we have target tomorrow and i just don't really care after target. i mean, it's just catch as catch can. the judgment is it's pretty good. when things started there was a note that downgraded j.p. just heresy but i feel that people are getting a little too comfortable. >> interesting, so you would be cautious here. >> yes, i don't buy when the thing that i look at since 1987 is very rarely led me away, astray. used to be an s&p, sta standard & poor's. now it's market edge and it's a measure of overenthusiasm. when you get to plus 5, this is now plus 7, people are overexuberant. that's to use a term that alan greenspan kind of coined so i'm not a buyer. i'm a seller. >> all right. do you think that if we were to

revisit all-time highs we would be looking at a so-called double top? >> ooh, wow. no, i just think that we'll be -- we have to have a recharge. we've had a lot of move. we have to have a sell-off and then i think we can go ahead, maybe mid-october or so. you have to deal with this. i'm working with larry williams who is an amazing market historian and he's saying, listen, don't get too excited. he used the term kaput. that the rally today is kaput. kaput? that's not tony down. kaput is different from tapering. larry sometimes is a little -- he can be hyperbolic but i do say that we have a quarter next week that is way too big. looming, nvidia. and there's too many people in nvidia right now. like, you know, i went to -- i had the -- our great charity event, thank you. >> yes. >> thank you for inviting me and

the take and there are people there who just said, look, nvidia has made my life. well, no, no, it hasn't unless you sell. nvidia's not made your life yet and a caller who aid, look after nvidia i was going to name my dog chewy. i'm shorting your dog. what are you doing? chewy. okay, farmer's dog. i just think there's too much on the line. look, that's not negative. just, look, too much on the line. >> you mentioned the semis here. for the group, 22% in ten days >> that's unbelievable. >> is going to be the best. >> 1984 there was this rally in texas instruments and i was -- used to be this machine in -- it was in grand central station. i used to hog it. there were people behind it. hitting up texas instrument calls and this thing is a jugger not. monolithic memories. all these semis and after a while, the group just bidding up the same stocks after own after and it was on the idea maybe we

were going to go digitized. not analog and i just -- after a while -- except for motorola. that one i didn't overstay because they pivoted to cell phones. >> let's say we followed that playbook, proceeds go where? >> two-year. >> as somebody said on our show, the bonds are doing their job. >> yes, they are. >> in terms of making up that part of your portfolio. >> absolutely are and i think that -- well, we're not allowed to own stocks but i love the two-year. 4% is really fabulous and i recognize that it's going to go away if i'm in a money fund. most people are in money funds. what happens they go down, down, down. the two-year does not go down. it is boring as all get out. what are you doing? i like the two-year. like, the two-year. well, no, don't you like kla -- don't you like -- how about lamb

research? no, i like -- asm, no, the two-year. so tug-of-war is people really are in it. everybody is in. >> are you one of those and we've heard this a couple times this week, people who are worried about, say, a ten-year that goes too low. >> no. >> too near a 3, 3% low. >> no, my -- no, i think that the bonds are doing their job, but i think that the worry is i just feel like i don't want to buy stocks over and over again on the same thing. earnings season is done. to come in every day and buy spotify on top of spotify and i just picked it because it's a great stock. i have nothing new soi'm playing multiple expansion and nvidia's got too much water to carry. i think it's going to be fantastic and then i think that the guide may not be satisfactory. i don't know what you have to do -- this is a huge rally, and, remember, talk about double top.

this would be the one because that last top was so ugly. i mean, it was just up huge and, boom, down, which is textbook so, you know, i want to own it, i want to trade it but i do recommend that people look at what it's done, look at the august low, look at now. what a comeback, boom. you know, what a comeback. >> it is incredible and as for your point about earnings, we are about 95% done with the quarter. >> yes. >> goldman had some takeaways, one is that the election might be suppressing some capex plans. revenue growth stabilizing at healthy levels. the consumer health pretty much ratified despite some of the comments out of consumer package goods. >> i do feel that -- i don't want to get -- there's a couple good notes. one thing i love what charts i'm looking at that katie huberty puts out, here a 60% in

vc-backed companies, their shutdown rates are three to four times higher than 18 months ago. there is rot underneath unless it's econ and even then we have too many but brick and mortar is not holding up. it's not other than abercrombie. >> although citi, positive catalyst watch on -- >> i know. they haven't missed. they've been terrific. gap stores is very good. matthew has this piece that coming out of the quarter is weak. july was weak and i don't want to see that because holy cow, we're in a position where you can't have substantial -- you can only have so many marvells before you say, the fed better cut and seems to do it yourself person stopped doing. >> to your point about names that have had a nice run. palo alto is not giving it you

will -- >> i don't know if we have a picture of nikesh. he was not over the top but very confident. >> take a listen. >> on ai, we're excited. we crossed $200 million in ai. selling products to our customers, not ideas, things we're trying. we actually sold $200 million worth of ai into our customers. >> well, that's contrary to cap spending. he did this thing called platformization and what salesforce does too. offer one unified product. people felt it was an excuse because he was losing to crowdstrike. crowdstrike now has its own set of problems. there was no grave dancing, because first of all, it was not a grave. i happened to say at 2:30, want to buy his stock. i was surprised at how bullish

nikesh was. ten price target raises. i do like the quarter. i do think this is his time and a lot is being spent on this because the bad guys are ceaseless. they won't stop. >> morgan stanley reiterates overweight. dan ives at webbush goes to 400 and add some to the buyback. >> 500 million buyback. one thing about nikesh, he doesn't suffer fools gladly. i have been -- look, on the conference call he'll say things like, oh, i'm so glad you're listening or no kidding. you don't want to be cross with him. the first caller says something, he says, you know what, you're the first caller. that was it. i mean, you don't want to go sideways with nikesh. >> we'll see if those gains hold and you mentioned lowe's with the bit. sales were light.

comps worse than expected. they do cut the guide a bit. looking for full year comps down 3 1/2 to -- >> marv came to me, the ceo there and minus 5.1 comp. we could come back to the tough housing market and what could be done when we know mortgage rates are too high. we need to have a way to be able to make it so you want to give up your current mortgage which you got low and willing to go to a new house and have some sort of demand that we're not getting. in the fact that if you're leno lenore, if he doesn't cut we're stuck. we're stuck. that's what they're so afraid of. >> we got toll tonight. >> yes, i think toll -- doug has done a fab job. he's just fabulous. i do think this stock, i mean it's had a 30% gain.

it sells at nine times earnings. these are million dollar homes. the great judge of what is coming out of the democratic party. it's like let's sell toll brothers. but toll cannot be sold because the fact is, if you want a million dollar home you typically would have to buy one. no, toll brothers makes it. doug is fabulous. doug, will you please come on the show? what are you avoiding me for? his nephew writes for me and the kid is fabulous. i mean, i sent the kid a piece on sunday. 5:00, right back, 5:01, so great. so anyway, we have an unbelievable team of people working with me. they are so good. >> you are proud of them. >> my team is just -- i'm so glad to be part of my team. >> when we come back this morning, faber is going to call in with the latest on this bronfman bid for paramount, lilly, j.&j and futures crossin

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professional dancers! -ok! stay connected during your move with the best in home wifi. easily transfer your services in the xfinity app. bring on the good stuff. paramount is moving lower in reaction to bronfman's bid for the company. david faber is calling in today with the latest. we talked about whether this saga was truly over. >> yeah, apparently it is not quite over yet, carl, at least maybe extended. had an opportunity to read the proposal from the bronfman group, and it is quite a group, 19 different people listed here. some well-known names, also some interesting ones including the crypto guy named brock pierce and a few other notables but the deal itself is notable because of the difference between it and the skydance accepted offer in that this offer is nothing in terms of liquidity to the

shareholders. the numbers then line up somewhat similarly but, again, what is absent here is any cash being provided to those who own the b shares of paramount who want to sell. our viewers may recall the skydance deal allows for shareholers to sell as almost 50% of their b shares at a price of 15 bucks a share, again, if they choose to do so. in this deal reading the letter, the proposal which is fairly long from the group, they try to actually make a virtue out of the fact that they don't want to buy the b shares, they want to go to corporate governance that allows full voting by the b shares, in other words, collapse the voting structure over a period of time. they, as well, say that the company would benefit from more liquidity or a higher float than the one that would be the case if and when the skydance deal is completed, so interesting

approach here from the bronfman-led group in terms of them saying they think the skydance proposal on its own would be dilutive and are trying to make a benefit, so to speak, of the fact they aren't offering liquidity for the b shares. far from clear to me, guys, that the special committee will see it that way given how hard i know they negotiated to get to a big price or at least a significant premium for those b shareholders who want liquidity in paramount, but at the same time, if you are that special committee, the likelihood is that even though this may not on the face of it seem that likely to lead to a superior proposal it's not that high a bar to say it's got a chance so you do extend here and give them the next couple of weeks is essentially what it is to put an offer together that they may have to decide whether it's a superior proposal. that's kind of where things stand and if that were to be the case just because you want to

figure out how this goes, you get a matching right over four days for the skydance group which includes larry ellison who is quite competitive and also richer than anybody else involved here by factors, jim, that i can't even quite account for. >> well, that's the problem. look, it's great that bronfman did this, it's exciting, whatever, but in the end you're not going to beat ellison unless, i don't know, maybe -- wale not musk because we know from the letter he doesn't have the credit so what's the point? did bronfman want to inject himself into the -- some sort of pantheon that you have to be if there's a chance which is to own paramount? >> listen, i mean, to your point, jim, there were any number of opportunities here. as we all know and our viewers know this thing has been basically for sale since last december, you know, you did have this period where they didn't have to put in and had an

opportunity if you were bronfman. when they originally rejected the skydance deal, to come in then. that said, you know, it's a serious proposal with real money behind it. they're saying they can go to 5 billion. i know becky said 5.5 billion potentially in terms of what they have in available capital of this group of 19 people listed on the letter, on the separate letter actually. i don't know the answer exactly except that they want to own the assets. if you do get this period here, is it possible you could bring in somebody else, right, like an apollo, which we know had interest along the way and then has disappeared. interestingly i've heard nothing that indicates that would be the case. so, you know, this is going to get extended for a little bit here, it would seem, again, give us something to talk about over the last couple of weeks. if you're a special committee, why not. give yourself a shot to

potentially have to go back to larry ellison and say, sweeten the pot. that doesn't mean it's going to happen. i don't see how they compete here with this argument, but without offering any liquidity for the b shares which were such a key component of why the skydance got to the -- >> david, appreciate it. it's good to have you on the phone. we'll see you on set tomorrow and keep an eye on the story with your help. that's our david faber on paramount. cramer's mad dash. countdown to the opening bell. futures have settled a bit into the red as the s&p tries to go for its ntstig w.nih rahtin stay with us. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry

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solar energy is changing the world, aes is changing the world of solar. got some interesting levels as the s&p looks to tie to hold 5600. vix at 15. although the one-day vix is below 10 and we'll keep our eye on bonds. jim mentioned the two-year today. >> too comfortable. we're just too comfortable. look, i like the market very much. how can you not but, you know, at a certain point we have to say, hey, have you seen -- then you come with some stock that nobody's looked at in a long time. smucker. you know what, it's someone saying something negative. that's a chance to buy it.

we've got to get over that. there are reasons to sell stocks, but we're kind of stuck with thinking everything is good. >> we'll see if we shake the trees here today. opening bell coming up in four minutes.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives and responsible investing. time for cramer's mad dash as we count down to the bell. >> one of the stocks most asked about in "the lightning round" and the stock in chewy and the ceo was on when it was 19 and he said, listen, we're done going down. now, bare says active customers nearing a trough. still % below the pandemic peak. they still early sentability. it was a darling. one of the most loved stocks and i think it can make a comeback because i do believe it's a way to be able to feed your an animals -- i like it. it's not our primary way because we've switched to amazon and a lot did switch to amazon but i do like this piece for sentiment. the stock can go higher. heavily shorted stock, 14% -- 14

short. >> the peloton, zoom -- >> very good question. i do think that the fact that it can trough and go up and those didn't -- it's not spotify. [ opening bell ] >> the big board, celebrating ai framework at the nasdaq solar power company sunrun. a million solar customers over the country. >> solar has been a big disappointment. very tough here. even though every single energy broadcast says it might be up to 25% of our nation's power by 2030. it doesn't seem to be panning out that way right now. need lower interest rates. people didn't realize that solar turned up the interest rate play, not a play on the environment and that's where people got it wrong. >> interesting piece on the tape go power generation.

first half capacity build biggest in 20 plus years. >> well, we -- we have no choice. when we talk about the data center it's obvious they're just giant crunchers of energy. when you hear jensen speak, jensen huang of nvidia, he emphasizes they don't burn as hot. where do you find enough energy? for instance, the northeast area, there's not enough energy. maxed out. you have to put them in placing that are -- haven't been thought about enough and i think that's amazon, that's microsoft has to do it with azure. google cloud is doing incredibly well and have to find places to get cheaper electricity. not everything can be hydro. >> meantime, you got crude, almost back to the february lows. >> yeah, the demand side there, a lot of people feel that demand side is coming from china. slipping down, i would come back. i was going back with rusty brazil, my favorite.

i'm trying to get a drumbeat to venezuela to come back. he's like, jim, there are limits to what could happen here, but i do know there's a lot being left behind. i don't think the permian ramps up unless trump wins. what will happen somebody will lose discipline. once one loses discipline maybe all do. >> gasoline futures, by the way, lowest since february. >> wow. >> the october future implies retail of 305 average in this country. >> the old days what would happen you buy disney and say, wow, gasoline. but then we see that disney is somewhat more expensive than people realize and have to cut prices. nike has to cut prices, disney has to cut prices. the food companies that kamala is talking about, ms. harris is talking about, no. the wrong stores. forget them. they're not the power. the power belongs to custom -- she can't come out and say i

want everyone to join costco, but she should. >> speaking of consumers and energy prices, we got some news in the airlines today as alaska, hawaiian going to get cleared. >> this is very interesting because a lot of people felt that jonathan canter, the since attorney general for antitrust wasn't going to rely on any airplane deal but this is one where there's no overlap. what they do is proved to be not dogmatic. i was afraid they would block any. maybe we just need some and cantor, hats off to him because i've been tough on him and he's got this case with google that i don't like. both sides of advertising, trade desk ameliorates that. jonathan, where is he? he is on? comes on "power lunch" when he has something positive. >> boeing pausing some test

flights of the 777x found damage to one of the jet's structures. we'll watch ba today. >> the piece, what are these two astronauts doing? it was more of a -- they didn't play up the boeing angle. what is boeing doing? >> that is a tough story and cpi airfares relative to average hourly earnings back to post-covid lows. >> that's so good because, remember, a lot of airline guys said we'll cut back in august and prices are going to go up and obviously hasn't appened. so the discipline that the airlines had turns out to be not as important as i thought. there southwest continues to hang in. american is where it was during covid. united is well below where i thought it would be and delta has room to run but that group is bad. i mean, if you can't -- look, every flight i take there's somebody willing to pay $200 more. these guys are not rational actors and i just don't know what they're doing. what routes they have that

aren't full. they didn't make money now, they ain't never. >> we'll talk to david ricks from lilly. this daytona regarding cutting type 2 diabetes risk and prediabetic patients by 94%, jim. then there's also the 22% weight loss data too. >> okay, so up 19. one of the things we have to find out is how revolutionary this is. we did have data earlier which interestingly enough earlier -- this is the longest time ever we've had these studies. pretty similar. i don't want to get too many excited. 176-week treatment. but what we want to know is other ways that this thing is starting to help. i mean, do we have something for type 1 diabetes? what do we have cardio? how about one -- a pill a month with just the roche. what are we thinking about what is going to happen with viking?

all on the red hot griddle and alzheimer's which people want to talk about -- i want people to feel good about it. roche will say they have something better. i ain't talking about viking, the ship company. >> no, in fact, wells today does name lilly a top pick as they refresh some rankings. lilly top pick with vrtx their second top pick. >> well, that one is just -- they've got a pain drug. i had them on. if they can get rid of opioid -- there's still people who -- get ten oxis wh ys. my doctor gives me a bag of frozen peas. they're not addictive and they don't taste good. they're not bad. i think back operation, frozen peas, give me some more peas. >> the other medical story, j&j buying this medical devicemaker

for about a billion dollars. >> they want to be big in device. the company has done so much that's good and against that obviously it remains talc and, by the way, j&j is in the crosshairs of the government. the government is still going after certain companies, last night was on -- the government's attempt to get down prices is real and not for show. i'm not a political operative. distribution business saying it's for real and yet the american people don't think it's for real because once again, the people in the white house just refuse to coordinate with the people who are actually trying to do good in any business because they just don't like business people. that's the way i feel and i don't know whether vice president harris will be different but i'm always amazed how tone deaf this administration is. >> well, when she became the presumptive nominee you had some kind words to say about her business sense. >> yes, i think that she is much

more -- because of tony west, because of her brother-in-law and because she's from california. she does not have the bias that president biden has exerted the whole time he's been president which is to not have business people in the room. that's his -- one of the great flaws that he has, i mean, i remember one time he had mike worth down there from chevron. he didn't see mike. he spent the day with the solar people. no, these people -- look, hate him or like him it's the business of america is the business of our country and i just feel like the decision to be the union president just made it so biden lost the credibility of american business and i don't think she's going to do that even though they're obviously catering to the unions still. >> fain spoke last night with a t-shirt that said trump is a scab. >> i have been a union person in the old days and i think those of us who were union people in the '70s, you take a radical

approach and the business shuts down, thank you j.p. stevens for reminding me what a mistake it was to join the picket line and join the boycott. you can shut down business if you're really tough and fain would cut his nose off to spite his face. >> not to get too deep but collective bargaining over the years whether protection for workers, safety, vacations all came as a result of unionization and collective bargaining. >> i like that but i think the president historically has tried to figure out a way that everybody wins, not this president. the way that everybody wins is good. look, xrooms did good. look, john d. rockefeller compromised with mother jones in colorado. you can compromise with anybody but the government has to try to facilitate reasoned analysis, not just say i've decided, it's the union. that was a very unusual move by president biden and not the way -- not the history of labor in the white house. >> a couple movers before we do get to lilly.

amir sports with a nice gain going to make you back to, oh, late june. >> we talked about that with ben who was my -- the researcher, chief researcher for "mad money." we don't want to be -- it's too fraught -- too many things could go wrong with those guys, hunting, golfing. go be in dick's. this is good. well-run company. >> yeah, it was a narrower than expected loss and upbeat guide. we mentioned the convention last night. a lot of discussion from trump and governor shapiro about opposition to the nippon steel/u.s. steel purchase that continues. >> i find -- look, i had cleveland cliffs on and cleveland cliffs started out this thing. lourenco goncalves and i believe in the end he gets it. this is the most hated deal ever. nippon steel is offering a lot of money and also keeping plants open and making all these

promises. no one is listening to nippon steel. no one. because i think because the name is u.s. steel and it's storied even though it's -- not important. >> let's get back to lilly as we said and the news surrounding its weight loss drug. angelica joins us with a special guest. >> good morning. nice to see you. >> owe have dave ricks, the ceo of eli lilly. good morning, dave. >> hi, angelica. >> thanks for being here. i want to start with the next steps for this -- for these results, you're saying that t trazepitide can help with prediabetes. do you seek a label from the fda or does this just help your case with doctors and insurers? >> well, i think all of those things. it's a pretty exciting day for us. here we took from our original one-year obesity study, a thousand people with

prediabetes, a common condition, one in three adults has prediabetes. and we followed them on drug on trazepitide or placebo for a three-year study. people lost weight and kept it off. weight loss was almost 23%, impressive but more importantly rereduced the conversion of people from prediabetes to diabetes by 94%. of course, when you become diabetic, it's not good. average risk of heart attack goes up fourfold. people with micro vascular and other complications and costs the health system more. this is a profound result actually and pretty exciting day for a company that's been working on diabetes for 101 years so we'll talk to the regulators. there's nothing approved for this today. and, of course, we'll share these results with payers, insurers in the u.s. and outside the u.s. as well as of course with physicians.

>> like you said, one in three americans with prediabetes. that's a lot of people and these drugs are not cheap. of course, prediabetes does cost the health care system money but, you know, what do you need to do in order to actually reach all of these people who could benefit from the drug? do you lower the price? >> well, we need insurance coverage. that's the issue. when you have hypertension, angelica, you expect to have coverage for a hypertensive medication. when you have high lipids, you expect to have coverage for that drug or when you have diabetes you expect to have coverage. why is obesity different? it's a large population as you say but i think the question two years ago was do these drugs, does traszeptide keep you healthier and we're learning it keeps you healthier so i think we need to argue for that and

both the federal government doesn't pay for these, many employers don't. they should. this is going to save money for our country in the long term and keep people living a healthier longer life. >> david, jim cramer. congratulations on the study that is pretty landmark. really great. >> thank you. >> i have a question -- i think this is important. we deal with the competitors like we'll have viking on. we'll have amgen on, regeneron, roche. i keep telling people if you have $18 billion to spend to develop the brick and mortar foundries you need maybe you can compete against lilly. can you talk about your competitive edge versus others and also include the fact that the fda isn't looking to approve four or five companies if they have something that really works. >> sure, jim. yeah, so, of course, we welcome competition. it makes us all better. i think one of the things about our industry, but every other one, when we compete with each other we make better products

and services for consumers. that's a good thick. that said i think we have an enormous advantage here and more coming. first of all, we first had phase 1 data on the drug in 2016. so people are getting excited about phase 1 data for these other companies, some with 16 or 20 patients. that is where we were exactly eight years ago. so it's a long time and a lot of effort to create, approve effectiveness and scale a product is where we are it t tirzeptide. probably more to do there to create the supply for the world for these amazing meds but also data. in today's announcement, it is another reminder of the huge investment which lilly and not only do you lose weight but when you do on this medicine it

converts to health benefit. this is our fourth study this year that does such a thing. prediabetes not turning into diabetes. last month we had congestive heart failure. reduction of 38% in the risk of death, hospitalization or other complications of heart failure. in april we had sleep apnea and in the wintertime we had mash or nash, fatly liver disease and we're proving the effectiveness of tirzepitide and that's a big advantage. final comment, we have 11 other new molecular entities for obesity or weight loss and the complications. lilly is committed to really innovating the space. >> well, that's exactly what i want to address, david. others have said, look, they don't have a pill. i think you probably are working a pill. people say, well, you've got -- you need to have an injector with who are than one dose. you have got that already in the uk and then i hear, well, people

just say it's once a month shot. aren't you working on every single formulation and aren't you ahead of the competitors? >> well, jim, we are working on every formulation that's rational to us every indication, every formulation and every molecular mechanism. that's why we have 11 projects on just mechanisms. you mentioned oral pill, there's a lot of noise about this. i think everyone gets that that would unlock more volume. both because you can make it in different systems and some people prefer the oral pill. there's only one pill in the industry, oral solid glp-1 and it's lilly's. the next one just started phase 2 so a pretty big advantage there. as it relates to multiple acting, so we know glp-1. that's how trulicity works. tirzepitide is dual acting. we're the only one with a dual

acting. guess what is in phase 3. a triple acting one that brings in another hormone to boost effectiveness even further, so we think we're at the lead. we plan to stay there and we're competing on every axis we can think of in what is a revolution for health care. the ability to maintain healthy body weight and ward off all the series disease that is go with being obese or overweight. >> one thing people have questions on, how long do i have to stay on this drug? do i have to be on it for the rest of my life? i thought it was interesting you had people go off the drug for a few months and you said that they started regaining weight and their blood sugar started going up. can you tell us more about what you saw there and what this means for how long people have to stay on these drugs? >> sure, this is not the first study that did that. i think everybody wants to know what happens if you get to a healthy body weight and go off the drugs. on average people do begin to

gain weight back and in this study we also looked at what happens to their prediabetes condition and are they advancing toward diabetes? and the good news is on the drug we can keep healthy body weight down for three years and ward off diabetes. when you come off the drug, a percentage of people do begin to gain weight and then advance -- begin the advance again towards diabetes. they don't snap all the way back as if they were never on the drug but that does begin to ramp up. we'll show some of that data here in november at an obesity conference. that's not surprising. like other chronic conditions you need to treat them chronically. >> well, david, one of the things that has surprised me i deal with all the consumer package goods and supermarket chains. not one person, not one outfit has said there's been any impact whatsoever on their business. now, that seems to be counterintuitive given the things you're telling me. >> well, you know, i think -- i mentioned before on the show and

others, i do get calls from some of these companies, everyone is interested in what is happening with this. i think if we look at the people who are actively using lilly's tirzepitide or study about what people put in their shopping basket, when we do calorie counting people self-monitor, on our medication they're eat about 800 calories less a day. that's about a meal. so that's a pretty significant reduction in food intake. that's why you lose weight, to be honest. they tend to move more. that's a good thing too. they tend to choose healthier foods. all good things. the reason this isn't scaled to, you know, a level that a grocery store chain or a large fast food maker notices is today in america we open have about 6 million people on these medications. and that's because of the supply

constraints we've seen. as we open up supply and as insurance coverage improves and maybe out-of-pocket prices fall, then we'll probably see more people and the impact will grow. that would be my guess. i'm not in the food business. i'm in the making people healthier business, jim, and these drugs are going to make people healthier. >> i'm glad you're in that business. >> dave, thanks for joining us. >> thanks to you, angelica peebles. keep an eyen bonds. we'll get bar and bostic on the tape this afternoon. ten-year 3.83 and s&p has a gain at the open and see if it holds and makes the ninth straight win the longest win streak for the s&p since 2004. stay with us.

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let's get to jim and stop trading. >> you heard what david said and

it's important to listen to every word, including the fact that at the end we do not have necessarily enough people to start hurting food companies. that was very good. he said listen we're a drug company, not a food company. a piece out today by citi, earnings per share seems likely sales weakness. this is it. this is the smucker call that i've been waiting for. hostess remains concerned. if there's going to be -- everyone likes to use the canary in the coal mine line. if there's going to be a twinkie in a coal mine, it's going to be with smucker because that's the one they bought, paid a lot of money. hostess got out at the top. david ricks, his drug, makes it so that stuff is not that attractive. so if you want to have like a tw twinkie you only have half. i think after nuclear war twinkies last -- there's spam an twinkie. you don't eat as many twinkies

and that's kind of like -- >> you would put that on the risk profile higher than beer or spirits or mondelez? >> mondelez got a little more universality. people feel after what happened with kellanova, which was -- what a given, that was like the hosest bid, i'll take that bid, they listened. i love the guy who runs it. but the other one that really got killed, they said over and over again, nothing to do with cannabis, it has nothing to do with the weight loss drugs, nothing to do with the expense. what does it have to do with? you can't have declines. what is casa my ga down 22%. no. it's expensive and also instead of having four drinks you have one drink. this is the difference between getting buzzed and hammered! >> yes. >> yeah. you want to get hammered those

things are over. we have confluent, enterprise software, and i thought it was the once darling industry that market has done a glp-1 for. it doesn't taste so good anymore. >> jim, we'll see you tonight. >> absolutely. >> good show. "mad money," 6:00 p.m. eastern time. when we come back the commerce secretary fresh from addressing the dnc last night when we come back. ou have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we

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good tuesday morning. welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla. we are live from post nine of the new york stock exchange. david has the morning off. take a look at stocks we're building on the rally now. nine days in a row. s&p up 0.2%. the nasdaq also is leading here up a quarter of a percent. dow down 38 points. what's taking us higher? health care up 0.75%. eli lilly a big part of that story. you heard from the ceo. stock up 4.7%. communication services rallying,

consumer discretionary, technology, utilities and materials. those are all your green sectors. energy, real estate and financials are lagging today. take a look at treasuries right now where we've seen this continued rally happening again today. 10-year yield 3.8%. expectation the fed cuts in september in a few weeks. 30 minutes into the trading session. here are three big movers we're watching starting with palo alto nooshs rising after reporting strong earnings and an optimistic outlook following strong demand for cyber security products. stock up 7%. paramount shares moving lower in reaction to edgar bronfman's bid for the company submitting $4.3 billion bid to acquire national amusements. the saga not over there. edward jones, initiating coverage on amd with a buy rating for the chipmaker ahead adding they believe, quote, optimism is not fully reflected in the share price. it follows a rally that we're

seeing. amd is rallying. nvidia is a touch weaker today. but carl n the absence of a lot of big economic data here in the u.s., folks are talking about some of the economic data abroad because we did get european inflation numbers. i wanted to hit. the he were a little bit hotter than expect the. not necessarily the direction that europe wants to see them go in. also speaks to the price pressures that persist, especially in services wages, in the eurozone. there is the 2.9% core, that was the same as the month before. then 2.6 overall inflation was a little bit of a tick up. now, ecb president lagarde has said she's going to look holistically at the trend of inflation. they've begun the rate cutting cycle but then paused. this doesn't give them a lot of room to go on a normal easing cycle. it also adds fuel to this euro/dollar trade. the euro at an eight-month, nine-month high against the u.s.

dollar because the bets are now the fed is in more prime position to cut because our inflation has been looking more benign. that's something just feeding into the narrative today >> yeah. nice run here for the pound. dxy seven-month low. canada's cpi came in, in line. >> canada was better, cutting rates as well. i'm glad you brought that up. we have that number, too. and it shows that, you know, globally, we're on a more disflationry trend. the bank in sweden cut rates. keeping track of the rate cutters. the canada 2.5% inflation rate, that was a little bit better than expected. so more good news on the global front. as far as in the u.s., we're still having this conversation of will we, won't we go into recession or how much are we going to slump in the economy now that we've seen some weakness, for instance, in jobs and i just wanted to highlight a few charts that stood out to me on this conversation. new york fed did a survey of workers and actually found the

significant percentage tick up in those expecting to be laid off from work. so this comes out of the new york fed, and there's the chart. look, we're at the highest level from where we've been and i think that that speaks to the sentiment. it's not necessarily what's happening on the ground, but it does represent a change. people are worried about layoffs. so the number rose to 4.4% on average, up 3.9% a year earlier. it's the highest data actually we've seen in the series going back to 2014. that's worth watching. we know the fed is watching it too. hard to figure out whether unemployment is lagging or leading as an indicator of the overall economy. as far as sentiment that's where it stands. on the other hand, bank of america put out a great jobs report today showing that the number of job openings to availability is actually still above 1%. there's the -- there's the job

openings for unemployed person. you can see the gray bars over sort of in the early part of the chart of the recessions and the periods that preceded recessions showed much lower job openings. the point is, if you're still rooting and thinking we're going to get a soft landing and -- especially on the jobs front this is a chart for you because we're not there yet. we still have higher job openings per unemployed people. >> that worry about at job fits with umich on friday where you have one-year inflation expectations. the lowest basically since december 2020. people are not worried about runway inflation, which is what we wanted so long. >> what the fed wanted and what we've wanted, absolutely. another chart from morgan stanley showing less recessionary fears. she looks at the credit market. you start to see credit spreads widening when there are economic fears. investment grade credit and high yield credit in the two colors and we've seen a little bit tick up there because of the volatility we've had in the

market, but nowhere near worrisome levels that we have seen, especially preceding recession or any kind of real economic tumult or worry. >> did you see how many s&p 500 companies mentioned recession on their q2 calls. >> probably not many. >> 28. >> very few. >> that's another -- >> the lowest in three years. >> and also if you loobts some of the polls and surveys from bank of america, fund manager survey, very high numbers expecting soft landing, recession. that doesn't always happen, but it's good to see from ceos as well. plus there's plenty of corporate issuance. you're not seeing that dry up in the market as well. as we are looking for all the signs and await bigger data releases, minutes from the last fed meeting, speech from jackson hole and the fed chair this week and looking ahead to the first week of september on jobs, we look at all these signals and so far it's not really trending in any kaif recessionary way. perhaps that's why the market has been able to rebound so

nicely. >> as for micro, pretty light earnings week. lowe's is interesting and then i know you're watching sports as well. >> good things to say about the consumer for all their brands. the quote of the ceo on that one. we're seeing strong momentum across all three big brands. lowe's like home depot, is caught up in the higher interest rates which is pressuring the housing market and how people are thinking and spending on their homes. here's what the ceo said about it. >> at the beginning of the year, our full-year outlook reflected our expectation that macro and consumer trends in 2024 would be similar to the back half in to 23. that assessment has turned out to be accurate, and yet there still remains a great deal of uncertainty around interest rates and inflation. in terms of housing specifically, we're seeing significant implications as a result of a lock-in effect. simply put, people aren't moving

nearly as often as they typically do because current mortgage rates are so much higher than their existing rates. and as a consequence, housing turnover is hovering near its lowest levels since the mid-1990s. >> this speaks to the pent up demand that we could potentially see on the back of lower mortgage rates when and if the fed starts really getting going with rate cuts. we know this part of the economy has been hit hard and prices haven't come down that much, as ellison said, people are locked in to their low mortgages just not doing a whole lot when it comes to selling or buying houses, and that's why we've had this odd housing market with activity depressed. >> there was an item on the tape yesterday that the level of unsold inventory in florida actually declined week on week, which you might argue, could be the beginning of a trend if we actually -- >> unsold inventory in florida. florida has been weird because it's been such a hot spot. >> yeah. definitely giving some back.

let's turn to the markets. s&p and nasdaq as sara says, aiming for their ninth straight day of gains. that would be fairly historic to see that happen on the s&p and the nasdaq at the same time. joining us at post nine today invesco's chief global market strategist christina hooper and jpmorgan's cohead of interest rate strategy jay berry. thanks for being with us. >> good morning. >> i wonder what you make of these levels, the repair work we've done since the growth scare, whether these over bought levels are concerning at all right now? >> i don't think they're concerning at this point, but it certainly has been a very rapid recovery from what i think was an overreaction. so that's how i view it. markets should never have fallen as much as they did. we shouldn't have had that level of fear because the recession risk just wasn't as high. >> would you -- somebody yesterday said it was akin to the flash crash. would you go that far? >> i don't know if i would say it was a flash crash, but it was a flash panic attack. and markets quickly recovered

when they saw data that showed that they were wrong. i think that's really the takeaway. we still have behind tus a very good earnings season all in all. and we still have a consumer where cracks are forming, but we're nowhere near the base case being a recession in the near future. >> jay, i mean it's not just equity prices that have gone around the block so quickly. it's also odds of a 50, odds of aen intermeeting cut. i wonder what kind of tone you think we're going to get on friday? >> thanks, carl. i think for friday, we would expect chair powell to ratify expectations that fed is on the path to lower rates. if we look at what's happened over the last few months, inflation has come down and we're expecting core pce 2.6% in july which has made the real fed funds rate restrictiontive over the past year. we think the path is open for the fed to cut. the magnitude, we don't think he's going to make a judgment knowing that labor market data

on september 6th is probably going to be keen influencing that decision because the unemployment rate has ticked up not just to the fed's 2024 forecast but up towards its 2025 forecast as well. >> so we've seen this big move in treasury yields adjusting to a new timeline and trajectory for fed cuts in the wake of better inflation data and weaker economic data jay. 10-year at 3.8. where does the next move happen, lower or higher? >> we think that the risks are towards a bigger move to lower rates from here, but now the markets are pricing over 90 basis points of cuts for this year and a fed funds rate that returns to 3% within a rel ittively short period of time. to expect treasury yields to move lower we have to think that the fed moves into accommodative territory towards 2rs, something that would take long-term yields lower. >> to get there don't we need a weaker economy and we were all talking about how we don't have that weak of an economy? >> no. i think that's a totally

reasonable assumption here, in order for the yields to move lower you need to think we're in a recession. the labor market data in the form of jobless claims and retail sales data indicate you're not, but i think we're range bound here. we know the fed is about to embark on a cutting path and by any sort of measure of accommodation or restrictiveness, fed policy is pretty much more restrictive than it's been at any point in the last 30 years. >> finally, on sector selection, we have seen some anecdotal restructuring layoff announcements last couple weeks from some large companies. do you think margins are in focus for some of these corporates and what sector was you favor if the backdrop happens the way jay describes? >> absolutely. margins are in focus. that's critical for so many companies. what i anticipate is that we do see an economic re-acceleration fueled by improvement in real wages, as well as the start of rate cuts, although i don't think it's going to be 90 basis

points this year. maybe we'll get 75. so that's enough of a catalyst in my opinion to see that economic acceleration. stocks will discount in advance of that. we're likely to see the cyclicals perform better and smaller caps perform better in this environment in my opinion. that doesn't mean that tech can't continue to hum along. that's a secular growth story for many industries in tech. for me cyclicals stand out as having the potential to benefit from an economic re-acceleration. >> hope to learn more on friday for sure. thanks for helping us out this morning. great to see you both. meantime, a quick programming note, don't miss our coverage of jackson hole and the economic symposium thursday and on friday the fed chair live right here on "squawk on the street." sglr as we head to break here's our road map for the rest of the hour. closer look at lowe's trying to bounce back after cutting its full-year outlook. what the results are saying about the consumer and how it play the stock from here. >> boeing the biggest drag on the dow following new issues for

the plane maker. commerce secretary gina raimondo will join us live this hour following her speech at day one of the dnc. "squawk on the street" will be right back. don't go anywhere. a number

with earnings. brandon gomez is tracking one of the big movers. good morning. >> good morning. one of the retailers we're following bucking the trend at least in china, amer beating for the quarter, revenue up 16%. look a huge unexpected profit. the company that owns wilsons sporting goods raising guidance for the year. now projecting revenue growth between 15 to 17%, versus prior guidance around the mid teens point. q3 guidance did come in weaker than expected. clearly this morning investors more focused on that guidance

raise. the stock has been a roller coaster this year and faced challenges in some wholesale, especially in the u.s. wilson and arteric sales reliant on dick's and nordstroms where it's seen softer preorders. last week we heard retail sales dipped in the sporting goods category. china, where amer is outperforming brands like nike which you remember reported brick and mortar traffic declining double digits while today amer is reporting revenue grew 53% year over year in china. carl, it's an interesting departure from the retail narrative we've been monitoring overseas and one we'll keep our eye on as we head through q3. >> thanks. brandon gomez. one of the few big corporate earnings we have today. shares of lowe's moving into positive territory. the company did cut its full-year outlook expecting shares to drop due to the macro economic environment. a hold rating, 225 target on the stock and joins us. good to see you. thanks for the time this

morning. >> good morning. thanks for having me. >> did they expand our understanding of the space beyond what depot said the other day. >> >> i think they added color to it, big ticket discretionary consumer does remain under pressure and lowered their guidance more than we thought they would and now it's really ability what does it taic to get consumers back into home improvement stores to buy those big ticket items. >> do you think it's about sort of housing mobility and releasing some of this pent up demand within housing? >> that's certainly a part of it. we've had basically over three years of negative comp store traffic from home depot and lowe's. the longer the housing market is locked up and people can't afford to do big ticket projects, they're only doing things they need to do, not things that they want to do. so it's sort of like a consumer still on pause when it comes to the home improvement market. >> i notice the hold on lowe's, but a buy on depot, is that

correct? >> yes. yes. >> explain the delta there. >> the delta we think is home depot is in a better spot in the mundane recovery where they have a bigger pro business that can help grow their sales into next year, even if the big ticket discretionary consumer remains under pressure. so they've got a better -- we think a better balance sheet and positioned for the middle recovery that we expect into next year. whereas, lowe's, our home improvement lead indicator suggests this could continue, that people are not going to do big ticket purchases and lowe's needs that big ticket discretionary consumer to come back and start out comping home depot. >> while i have you, i know you cover some of the big boxes. walmart, which i read the other day, greg, last three earnings days, have gapds up to an all-time high. i wonder how long undersyou thit can continue. >> we have walmart that has auto

zone, o'reilly, sherwin williams and for discretionary kicker wayfair in there. to us walmart is a real retail turnaround story and margins have started to inflect and they continue to grow positive traffic for several years. the opposite of what we've seen in the home improvement space. walmart has the traffic momentum and the margin inflection and like it as one of our top things. >> i think at last check best dow name of the year. pretty incredible. appreciate that both on the lowe's and walmart front. thank you. greg malik over at evercore isi. boeing hitting another hurdle impacting the stock. details on tt. ayh .tusha

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new problems for boeing pressuring the stock this morning and taking down the dow. it's dragging 40 points off the average. to phil lebeau with the details. >> good morning, sara. this is one of those issues where boeing you understand what's happening here in terms of halting 777 x test flight, the thing you have to do given the situation, but it also makes you say, when is this plane finally going to get certified and go into service? here's what happened yesterday. the company made the decision or at least acknowledged that it is halting 777 x test flights. this is the long-range version of the ste777 that's been in development for a number of years.

they halted the flight tests because during the faa flight tests they did checks afterwards and they found a cracked part and actually they found it in other aircraft, four that have been built that are going through flight tests right now and as a result, the part which is called the thrust link, which takes the power from the engine and then transfers it into the aircraft which allows it to power itself going forward, well, those cracks are enough that they should say, okay, let's hold off here, figure out exactly what went wrong with this particular part and for the 777 x this ads to a bumpy road that started back in 2013. that's when they announced this. 2013. and they had their first test flight in 2020. they said by '22 it will be in service. noway. it's two years overdue. el we'll not see this until potentially '25 and chatter it could get pushed out to 2026 depending on how long the roux review of this part takes in

terms of the flight test going relatively soon. for the new ceo, add this to the list of things that need to be fixed as quickly as possible and he's got a substantial list that's already there, including the 737 max and improving production processes there at the starliner, other issues as well. as you take a look at shares of boeing, keep in mind they have orders for 481 777 xs, the 777-9, 481. a number of people who have ordered this plane, they have complained publicly in the past how they have had to wait. they're going to potentially wait longer. the bottom line, when you take a look at this for boeing, understandable you halt the test when you find a cracked part like this, but at the same time, it sits there and makes investors say, okay, when is this plane going to finally get certified and ready for service? >> how unusual is it, phil, are

investors more sensitive now to these kind of address and issues for boeing given what's happening? or does it just add further fuel that there are some serious problems here with manufacturing and the culture? >> i think, yeah, i think it adds to the perception that there are problems at boeing that the company is struggling to get its arms around. look, during the flight test process this is what you want to happen, not have a cracked part found but this is the reason you do numerous flight tests, where you are checking every single part. by the way, there was a redundant part that is in question here. so it's not like this plane was in serious danger here. but it is an issue that will need to be corrected. and so if you are an investor i think a lot of investors are looking at this saying it's one more thing. and that's really the bottom line here. sara. >> also wanted to hit hawaiian holdings surging today up 11.5%. >> sure.

>> was this a surprise that the antitrust authorities are letting it go through, the merger with alaska? >> a little bit. most thought it would get approved but with concessions from alaska. there are no concessions. the doj had until 12:01 this morning in terms of whether it wanted to fight this merger in court or let it go. they let that deadline lapse. which is their way of approving a deal. so now the question becomes, when does the d.o.t. give its blessing? the doj was a bigger hurdle than the d.o.t. most believe the d.o.t. will happen quickly. the last merger in the airline industry in this country was by alaska, 2016, when it bought virgin america. >> it's also unusual for this department of justice administration. thank you. phil lebeau on some of the movers in trance --

transportation today. gina raimondo will join us. energy fuels, a leading american uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. energy fuels. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our

friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance.

welcome back to "squawk on the street." i'm bertha coombs with your cnbc

news update. the israeli military says it recovered the bodies of six hostages from the gaza strip overnight. the development comes as cease-fire negotiations continue that would secure the release of the more than 100 others believed to be held in the territory. about one third of those hostages are believed to be dead. meanwhile, secretary of state antony blinken met with egypt's president as he pushes hamas to accept the deal. israel agreed to the deals but hamas says it's a departure outlined by president biden in late may. divers in italy renewed their search for six who are believed to be trapped in the hull of a super yacht that sank monday. among those missing mike lynch, who was recently cleared of fraud and conspiracy charlges here in the u.s., one of his

lawyers and a key witness. authorities say the yacht is about 165 feet under water which requires a special precaution for divers and that is slowing down the search. sara. >> thank you. bertha coombs. the democratic national committee convention under way and gina raimondo on vice president harris' economic vision. she joins us now from chicago. thank you. good to see you. >> good morning. as a reminder, i'm here in my personal capacity, not secretary, but former governor of rhode island. >> that's why i said the honorable, not in a secretary capacity. i want to ask you about what you said, i watched your speech and said that vice president harris is pro business and offers a pro business vision. i was wondering if you could clarify that. for a lot of our viewers and even some folks in businesses that we've talked to, they hear

things like, price controls or going after price gouging and corporate greed and it's not necessarily clear what it means for business going forward under a harris regime. so what did you have in mind? >> yeah. i'm so happy you asked that question because i think that i talked to some business folks as well, and they are maybe hearing the wrong message. vice president harris is absolutely pro business, pro innovation, pro start-up. by the way, she's also pro worker which is what i said in my speech. she noseknows that you can be b pro business and pro worker. what i also know to be true about her is, she's proud of american business and knows that that's core to our american competitiveness around the world. that being said, you know, she's not for price fixing. that is a distortion of -- you know, that's a republican talking point. what she has said is that

everyone's got to play by the rules. right. there's no place for collusion. there's no place for price gouging. there's no place for taking advantage of consumers, and if she -- she'll go after bad actors trying to get around the law and she also knows that small business is the life blood of our economy and for them to flourish, they need competition and fair competition. so i think that there's been a distortion of her view. she's not for price fixing. but she is very serious about making sure that americans -- she's going to use every lever at her disposal to bring down costs for the american people. >> i mean, it's confusing because her -- one of the main points of her economic message was she called for a federal ban on price gouging for food and other items like pharmaceuticals, and, you know, that's a place where the government then controls what

the fair price of a good is. it's not even clear that that's necessarily going on right now. you talk to businesses. they're slashing prices now because consumers are pushing back. >> and if that's what's happening f they're playing by the rules and doing everything they can, then that's fine. and i know the vice president wouldn't go after that. again, let's talk about the facts here, not the political rhetoric. many, many states in this country, including rhode island where i was governor, have anti-price gouging regulation. by the way, we have usury laws, we have antitrust laws. forever, for hundreds of years, we have had laws which provide guardrails for our economy. and that's what she is saying. she's not saying broad price controls. she's saying, go after companies in a narrow way if there's evidence, right, this is all going to be evidence-based. -- she is one of the best

lawyers and prosecutors we know. she's not out to take business down. she's out to, you know, hold them accountable, which is good for the economy. she's also incredibly focused on costs. just step back for a second. the economy that biden and harris inherited was one of the worst economic crises this country has ever seen. today we have the strongest economy in the world. right. biden and harris deserve credit for that. the thing that consumers still feel are high price of housing, high price of groceries, high price of child care, and she's going to pull every lever at her disposal as president to keep a lid oncologists in a way that allows our economy and businesses to thrive. >> why do you think that americans are feeling that high inflationary costs even despite the year over year inflation rates coming down, you cumulatively, they're higher prices that we're paying at the

grocery store than we were five years ago. what do you think that is driving that? do you think it's corporations? agreed? >> i think -- i think it's a combination of things. but i will say this, initially, the price spikes were because supply chains were incredibly snarled due to covid. supply chains are moving now. so they can't claim that is the case. obviously, gas prices, you know, american food runs on gas. wages. et cetera. here's the reality. if there is evidence that some retailers are price gouging, what you will get from a president harris is a that she will go after them because it's just not fair for the american consumer. >> what's been talked about a lot, of course, is the legislative wins, the chips act and the inflation reduction act, certainly what we've done with manufacturing construction in this country, more than we've done in some 20 years prior.

i do wonder, though, as we take stock of some restructuring at companies like intel, if that takes a little bit of the shine off of at least the chips act in your view? . >> again, i'm not here in my capacity as secretary, so i don't want to talk about chips specifically, but i will tell you this, and i believe this very strongly, traditional republican economic policy, especially that opposed by former president trump, says cut taxes on the rich and hope that everyone else does fine. it doesn't work. that's one of the reasons that manufacturing left this country and went to asia, because the obsession with short-term profits, which is what taxes incentivize, left the american worker behind, our supply chains vulnerable and hollowed out entire communities around this country that used to be manufacturing hubs. and now, under president biden and kamala harris' leadership, we are bringing manufacturing

back. we are making batteries, electric vehicles, whole amounts of the supply chain in this country, good middle-class jobs. that is what you'll get from kamala harris as president. good middle-class manufacturing jobs, by the way, makes america's national security stronger because we shouldn't be overly dependent on asia for so many of our most important products. >> when i heard you tell the story about your father -- i've heard you tell it before -- about how the job, his job, his employees' jobs were taken by overseas workers, it sounded similar to the messages we were getting from the republican party and specifically from former president donald trump, who has been really hammering the trade issue and promises to be even more confrontational with countries on tariffs and on trade for stealing american jobs and american products. it does raise a question as to what vice president harris is proposing on the trade front and how that stacks up?

>> okay. but what he says now in order to get elected he'll say whatever he thinks it takes to get elected. look what he did as the. cut taxes on the wealthy. supposedly that was going to lead to greater business investment. it didn't happen. it didn't materialize. what we saw under his watch was a decline in manufacturing jobs. by the way, when covid came, our supply chains, including manufacturing supply chains, were incredibly vulnerable. because for so many goods, including batteries and solar panels, we don't make any in this country. he didn't do a dam thing to bring back manufacturing and there's no reason to believe he will do anything to bring back manufacturing if he's in office again. kamala harris and joe biden have a clear record, right, they've created more -- manufacturing is surging in this country under their leadership and you can expect more of that when she's

the president. >> i also wanted to talk about the costs of some of the proposals that she's laid out after her speech, you know, the nonpartisan committee for responsible federal budget found her plans would increase the budget deficits by $1.7 trillion. now neither party is talking about fiscal responsibility, but the last thing we need now is to add to already very high deficits at a time of low unemployment. does the party not care about that anymore? >> of course we do. but honestly, i find it laughable that anyone would criticize democrats about the deficit, when it was donald trump who exploded the deficit with his reckless tax cuts which did nothing to improve productivity or the economy, and, in fact, under his leadership, the deficit exploded in a time of economic prosperity. every business owner as i used to be, every governor, every

president, knows in good times, that's when you want to save and bring down the deficit. what trump did was, somehow, he managed to explode the deficit even in the middle of a booming economy. so we know we can't trust him. what you've seen from president biden and what you'll see from president harris, they will work with congress to make investments, make investments in america and infrastructure and job training and also be responsible about it to make sure it doesn't balloon the deficit. >> thank you very much. we appreciate it. the former governor of rhode island, honorable gina raimondo, thank you for joining us from chicago today. >> thanks for having me. >> as we go to break watch netflix today. the first all-time high for netflix since 2021. as it gets to 711 this morning, up 20% in the last two weeks. stay with us.

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recent news on disney. value act, hedge fund, increased its holding in disney during the second quarter according to the company's latest 13-f filing. the activist hedge fund added 13% to its position making it their third largest holding worth more than $600 million. value act and disney came to an agreement earlier this year with the leader showing support for bob iger and the board room in the fight against nelson peltz's trian group. it's worth digging into disney for a second after earnings last week. the one-year chart of disney, upsee where we are, waerpds under $90 a share. trian sold at about 119. we've come down and according to some of my conversations with certain investors in the stock, there are questions about disney and bob iger's plan going forward and whether disney is in a better position than it was a year ago. you take the part, the slowing

parks division, irked investors last week. this was the juggernaut and something that, for instance, trian had warned about competition coming due with our parent company comcast adding in universal studios next year. also, disney has relied on price increases. there's a great take out in "the new york times" today about families going into debt from going and spending a week at disney world. the cost of a one-week trip to disney can range from $6400 to $15,000, which doesn't include flights or souvenirs according to nerd wallet. that's been a big strategy. and now consumers are pushing back and feeling the impact of inflation and there are worries about the parks division. the sports bundle, there was news with a new york court, federal judge in new york, saying that they have to temporarily put that on hold because of antitrust concerns. the sports bundle, remember, that was key in the strategy in

their fight against trian. so yes, the streaming profitability came a little bit faster than expected, but i think there are some questions that investors are asking right now about where this goes from here. let's stick with it and get the street's reaction. guggenheim's entertainment analyst joins you now a buy rating and a price target of 105. is disney in better than shape than it has been a year ago. >> better shape is a tough question. there are pros and cons in the context of the topics you brought up, but what i look at, i want to take a step back and think about the investment thesis here. i think there's two things for investors to focus on. one the core of your question, is this a collection of assets that can create sustained value for the long term? and two, are we getting a good price on it here? i think that the answer to each of those questions is yes, and that's why we have a buy on the stock. but to address your questions specifically are they in a

better place, i think on the entertainment side of the business, which includes the direct-to-consumer business which is now profitable as you highlighted, they are absolutely in a better place reflected in the strong film performance they've had over the last four films they've they in a better place? i think the answer is, no, they are not in a better place per se, but i think that's a function of the macro economy, and i think that overhang of uncertainty around what is happening with the consumer you highlight in the article from "the new york times" today is ab important component of that, but i think there's more to dig into there. >> why? hasn't the strategy been price indress? we're seeing a similar strategy as well on streaming, which in a tougher economic environment isn't as hot as we can see with parks. >> absolutely. but i still think you have to separate two things. are we talking about a macro economic call on this particular stock or are we talking about their strategy for long-term

value? is it a cyclical problem or a sustained problem? i'll take the two topics. one, with respect to the price increases at the disney parks, certainly there are going to be questions about the health of the consumer whether the company got ahead of itself in its pricing in a period of very strong demand post the pandemic. but i look at that article today from "the new york times" and i think there are two sides to it. on the one hand, you're certainly highlighting, we're highlighting -- or having highlighted how expensive this premium product is. at the same time, it's highlighting how consumers have such a passion for their product that they are willing to save, spend, spend ahead a bit for what they consider a unique life experience. so, when we talk about the intrinsic value of this asset, i certainly think that is reflected in that article. that said, right, nobody knows about what's going to happen with the consumer from here. certainly the signs point to a tempering of demand, that is reflected in the guidance that the business gave. it's reflected in the guidance

of the content of the work we do, which includes tracking things like app downloads and other data points that have shown softening. we were ahead of that going into the quarter, although that softening has slowed. the question s am i getting good value on this stock now in light of this? and you brought up the streaming point, which i'm happy to talk about. one of the great parts about the streaming business, not only for disney but for the industry at large is that companies are delivering both subscription and ad-supported streaming services to give the consumer choice. so, i think the price points are providing choice. the key is having content that the consumer really wants. >> yeah. if the complaints were about studio and sort of creative choices, your point about deadpool/wolverine and inside out 2, your point is well taken. on the sports junction i wonder if that is going to hold? >> we are planning for venue, the service has been put on hold

by the courts, we have from the start, not assumed a material financial contribution from this business for the industry at large. we are certainly in the skeptical camp that venue at its price point and with what it offered was something of a half measure between a consumer being price sensitive and looking at the price of individual streaming services in the range of, say, $5 to $25, and the full bundle, especially when it comes from a service like youtube tv in the range of $75 to $90. we felt the consumer was looking at one or the other and we didn't see a large segment of the market looking for a $42 service with some of the sports content. whether or not it holds is kind of inconsequential to us. we don't expect it to be a material driver, regardless, and we're waiting for the stand-alone espn service which is scheduled to come in 2025. >> the subscriptions have slowed down a bit. only growing 1% last quarter. look, we appreciate you coming on to talk about it, michael

morris, guggenheim securities, as investors wonder what to do with this stock at disney. we'll be back on "squawk on the street" with the dow down 53. , tailor-made for trader minds. ♪♪ go deeper with thinkorswim: our award-wining trading platforms ♪♪ unlock support from the schwab trade desk— our team of passionate traders who live and breathe trading. ♪♪ and sharpen your skills with an immersive online education crafted just for traders. ♪♪ all so you can trade brilliantly. ♪♪ growing your business is easy once you know the moves. with godaddy websites plus marketing, you can quickly create a website, and ai will customize it for you.

get your business out there and get more customers in here. no sweat... for you anyway. create a beautiful website in minutes with godaddy. this new data from eli lilly showing the weight loss drug slashes the risk of diabetes. angela peebles is with us. >> good to be back. lilly saying today people are 94% less likely to develop diabetes when taking willing tirzepatide compared to a pla placebo. right now the drug is used to treat diabetes and obesity, and lilly is showing the drug can actually prevent diabetes in people whose blood sugar is high but not quite at the level of diabetes. that's called pre-diabetes. ceo dave ricks telling us earlier that lilly will talk to regulators about the results in

the next steps. lilly plans to show the data to insurers. they're trying to make the case that tirzepatide helps people do more than just lose weight. >> does tirzepatide actually not only keep you thinner but keep you healthier? and we're beginning to learn it keeps you healthier. so, i think we need to argue for that. and both the federal government doesn't pay for these, many employers don't. they should. this is going to save money for a country in the long term. and keep people living a healthier, longer life. >> lilly keeping people on tirzepatide for three years in the trial and then having them actually go off the drug. some people regain their weight and saw their blood sugarses keep up. ricks is saying this treats chronic diseases. >> "money movers" begins right after this.

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good tuesday morning again. welcome to "money movers." i'm sara eisen with carl quintanilla live from post 9 of the new york stock exchange. the s&p trying to make it nine up days in a row. can stocks continue to rally after fed var powell's speech? medtronic's ceo will join us. we are live in chicago as the democratic national convention continues and the food industry pushes back against kamala harris's price gouging plan. north dakota senator heidi heitkamp joins us. nine days on the s&p would be the longest stretch since 2004, but we have given a little back and fallen into the red. the s&p back down below 5600. the vix, by the way, popping up against 15. can it continue? let's bring in our