$40 million-p. >> he was pointing at the cubs dugo dugout. >> or the pitcher. but someone's willing to put down $40 million on a 92-year-old jersey. >> let's look at the futures and toss it over to "squawk on the street." i'll update you on where the futures are on that show. anyway, thank you both. join us tomorrow. "squawk on the street" is next. ♪ good monday morning, welcome to "squawk on the street," i'm david faber alongside jim cramer. we are live from post nine at the new york stock exchange. carl has the morning off. look at that. joe was preparing you for this moment. >> yeah, and i like that. >> we are going to look at those futures. you can see they haven't changed very much from when joe just did them 30 seconds ago. >> incredible. >> it's incredible. let's get to our road map. that's also incredible. it begins with the markets

post-powell and jackson hole. of course, those comments from the fed chair adding to investor optimism. we're getting a september rate cut. i think we're pretty certain on that. how dig big is the question. this week, it's all about nvidia. wall street is gearing up for the company's quarterly results due out after the bell on wednesday so we have a couple more days to talk about it. >> if we're going to put -- >> how about a countdown clock? >> solana, which is a coin no one trusts or believes in. >> let me finish the rundown. we also want to talk about kroger and albertson's. jim and he talked about this deal previously but now it's heading to federal court, the ftc trying to block the merger, and it's worth spending some time. >> oh yeah. >> but the first thing we're going to spend a little time on is the markets. of course, following friday's rally, that was sparked by this comment from fed chair powell at jackson hole. >> the time has come for policy

to adjust. the direction for travel is clear and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks. >> all right, you were out on friday, enjoying a well-earned summer friday. >> thank you so much. >> give us your thoughts in terms of the market reaction. obviously, we're getting a cut in september. there's virtually no doubt about that. there is still some debate as to whether it's going to be 50 basis points or 25. >> well, i will say that there was a belief coming into the meeting that it paid off maybe to be short, because there would be actual movement but not big movement if we had the comments that says he was definitely going to cut. turned out that the short play was wrong. and i think the short play was wrong because what he's really saying is employment. employment is the issue. and when it's employment, it doesn't necessarily mean that you're going to get a tightening -- a cutting that is done on an emergency basis. it's a cutting done -- we were talking about it this morning on

frank holland's excellent show -- on a celebratory basis, and i think that means things are good. we do not want emergency cuts. those are horrible. >> we're not going to get those. >> no, we're not. >> but we are going to get a cut. >> yes. >> i assume you believe 25? >> i think 25, because i think there's a lot about jay powell, which is to say, look, there's no panic. we can do 25, and we can do 25. jay powell does not pay attention to what we do. the parlor game of 25. he's above that. when i say he's above that, he has his view. he has a long-term view of the economy, of actual economic style economy, you know, what should be done. >> yep. >> and he has a long-term view about the role of the fed and the fed being a stable force, and 50 is not stable. >> right. 50, again, would be something people maybe say, whoa, wait a second. >> yeah, what does he know that we don't know? and he doesn't like that. i think one of the things he's

really gotten right that the last two fed chiefs haven't gotten right is what you can do is say, take action but don't take action that indicates that things are terrible. the economy is not terrible. >> all right. and what does all this mean for stocks at this point, then? >> well, i do think it's very -- i think it's very bullish. i think that's what you saw friday is that maybe there's an expectation that things are going to be a very good soft landing, but it's being countered, david, by the o overemphasis of nvidia. you go from friday, jackson hole, okay, well, we passed that test, to then we go to the nvidia test. i think we have to end the tests. i think we have to just say, look, nvidia, even though it's 6% of the s&p, 7% of the nasdaq 100, is not so important that it can derail an a.i. revolution. >> but it is that important to the market. >> why? because it has a 10% plus or

minus? >> it has an impact on so many of the other companies, of course, that are all wrapped into the basic thesis that did power our market higher earlier this year for a period of months. and we should say, obviously, it's -- last week, jackson hole. this week, it is all about nvidia in terms of the quarterly results. we do get them after the bell on wednesday. >> yes, we do. >> which gives us two more days to talk about it. >> we can start now. there are two people at nvidia that matter. there's jensen huang, the ceo, and then there's the amazing cfo, colette krause. >> yes. >> you will have so much cash after this quarter that the deployment of cash may matter. i happen to think that one of the reasons why apple went from $200 to $220 is the recognition that the buyback would be accelerated. it was not talked about much, but it happened. and it is happening. i think that colette krause says, listen, we have so much money that we have to start buying back a huge part of our flow. that would be very bullish. jensen, i think, has to talk about how it didn't really matter that blackwell was

somewhat delayed because there are more customers than ever. in the meantime, the h-200, high-margin product, will help them. now, one of the things that's great is i have -- david, you don't do fantasy. >> i don't do fantasy, no. i'm a purist. >> i live in a fantasy world. >> i like to watch the teams i like, and i don't like to be thinking about the other team's player, who i may have in my fantasy team. >> my reality is subpar. so, i have an alternate reality that's much more fun. >> okay. bring us in. >> ben righteous, who i go back and forth with him -- >> you want to tell people who this gentleman is? >> ben righteous is the ceo for mellius. he is a serious practitioner of the game, as was his father. >> he's a serious analyst who covers nvidia. >> yes. his father was when he ruled the chemical industry. >> right. >> and he says -- he does what's

called a triple lindy, harks back to the olympics. he says, you need to beat $2 billion this quarter. you need to guide up of $2 billion. and then up to have -- this is really fabulous -- say enough to imply that q4 grows by another $2 billion. thank you, ben, who is, i think, the best at the whisper, which obviously matters to people at home, meaning there's a kind of effort to say, this is what needs to be done. i like this. and the reason i like it is because this is where jensen can blow things away. >> again, so, the idea that you need an upside guidance in guidance of $2 billion on top of whatever -- so, it's $34 billion or so? >> now, remember, $2 billion is huge. even if apple were to report and there was $2 billion upside, people would say, wow, i guess it's a new cycle. we got to start buying.

i think what will happen is you'll hear about -- can you stop it with the wire? i'm trying to focus here. >> it gets caught in your feet. >> well, the sneakers you wear -- are they nike? hoka? we're going to get to nike and you're wearing hoka. i didn't know you were going to demonstrate proficiency. jensen, if he talks about the more than 2 bil, we're all going to say, not blowout, but good enough to keep it here or take it up a little. i know that's boring. i know that's an incremental. but that's why i'm saying maybe the whole focus on nvidia is not leaving any room for the idea that, hey, it's a little better than expected. there's the $2 billion. you got the $2 billion number. now, ben has been very good at predicting what's expected, and by the way, he does a triple lindy, has one of my favorite movies, a picture of rodney dangerfield in "back to school" doing a triple lindy. >> it was a great moment in film. >> extraordinary. i think what i would regard as artistry of ben righteous. >> yes. a lot of this will be dependent, of course, on the continued

growth of datacenters. >> yes. >> at a rapid rate. >> oh, yeah. >> and you know, i do wonder, longer term, jim, and we haven't had this conversation in a bit of time in terms of just the development of a.i. and where things stand and datacenters, we talk often about power. i don't know when that day is coming, that they're truly going to be constrained, but what may well come -- >> blackwell must be -- >> that's going to be something we're talking about a lot when we see the first signs of it. >> that is so strong, and what people don't understand is there are whole regions of the country that are maxed out. they can't build datacenters anymore until there's more -- the grid is updated, and i think there's a lot -- the southeast, the grid seems to be overwhelmed, particularly, by the way, in the maryland and virginia area. >> every time i bring on the person who runs the utilities or a head of a big utility -- last week, i had ercot, and they're very confident. their projections are stunning, in terms of how much power is going to need to be increased, availability, over the next four

years. >> they better be confident. >> they seem to be confident they can meet this incredibly growing demand, but there are many others, jim, who believe that will not be the case, and that will be the first break on sort of this overall demand. >> i want to stay focused on it, because alphabet, according to mellus, meta, 31, amazon, 54. those are percentage gains in the number of datacenters. david, there's no way that you can route that much electricity to these companies. not right now. in other words, you need them to burn cooler. there are a lot of companies trying to make it so they burn cool. >> there are. >> but it's going to fail. >> i'd love -- one day, we've got to get into a datacenter. >> i'm working on it. i have an in. >> and then go through every single thing that's in there and try to explain to people -- can i come? >> it's "mad money," and i have it. >> you won't do it for -- you know you're on this show as well. >> so is will frost. that doesn't mean we're going to

do a datacenter. >> that's not a sufficient answer to that question. >> it's a total non sequitur. you are vertiv. you're got dover, eden, jensen, who cares more about burning hot -- what a lot of times, when you talk to him, he mentions it very early on, maybe before you can mention it. i think that's important. and by the way, the gaining factors are not how much the hyperscalers spend. they have to. >> it's power. >> yeah. because -- >> it's also -- i mean, at some point, the data -- there won't be any more data to hoover up, and then i don't know what happens then. >> video takes a huge amount. david, i switched to meta, that a.i. it's really only good for, like, kind of pop culture, like, carl stuff. >> carl is amazing. he's his own a.i. on pop culture. >> i've switched back to gpt, but i dabble with claude. claude is very good. i call it raines.

>> of course. it's the beginning of a beautiful friendship. >> it sure is. when we return, the ftc versus kroger and albertson's. the two supermarket chains are heading to federal court today. they're going to try to defend that merger. its announcement, almost two years ago at this point. let's take a look at futures as we get you ready for an open of the market this day and this week. 18 minutes from now. more "squawk on the street" straight ahead. (♪♪)

car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com i can't believe you corporate types are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

pete g. writes, “my tween wants a new phone."

"how do i not break the bank?" we gotcha, pete. xfinity mobile was designed to save you money and gives you access to wifi speeds up to a gig. so you get high speeds for low prices. better than getting low speeds for high prices. -right, bruce? jealous? yeah, look at that. -honestly. someone get a helmet on this guy. get a free unlimited line for a year when you add one unlimited line. plus, get a new google pixel 9 on us. bring on the good stuff. let's talk kroger kroger-albertson's, going to court. it was a deal we talked a lot about. we talked about the antitrust challenges, specifically. not unexpectedly, it was challenged by the ftc. and now they head to court to try get a preliminary injunction against the closing of the transaction. for its part, of course, kroger says, you got nothing. i mean, here, just one of the things the, the complaint, they

say, willfully blind to the realities of the current grocery competition. this was in their response, obviously. including insisting on maintaining an archaic fiction that limiting grocery competitors to supermarkets -- of course, one of their key contentions is that the likes of costco and walmart are the real competitors these days, and that, in fact, they are going to only reinvest in the business from the savings of the deal and lower prices even further. another key consideration here is the divestiture partner, cns, which has agreed to take on quite a few overlaps in terms of stores, but then that question that we brought up so many times in other deals as to whether it can really represent a viable competitor. the ftc says, no way. >> the ftc is not wrong in the sense that what's happened -- the reputation of the ftc is somewhat on the line here,

because they very famously allowed a safeway-albertson's deal and they spun off to heaggan, which has a small store base, and heaggan went bankrupt and the next thing you know, the safeways became safeways again, so it completely failed, and ever since then the ftc -- by the way, the antitrust division of the justice department not really against this -- ever since then, they've said, no more deals. what's happened against that is it's really been solidified that walmart and costco, and to a lesser extent target from last week, but walmart and costco are the competitors, and amazon will be a competitor when it comes to same-day. >> and target, to a certain extent, a competitor as well. >> on the one hand, yes, any divestiture is viewed suspiciously. >> and by the way, we should add it's at least 413 stores is what they're talking about agreeing to divest, the cns wholesale grocers, which they're largely a wholesaler and distributor. >> it is an archaic view to look

at this combination as against other supermarkets. >> you believe that is the case. >> by the way, costco opens up -- >> the question is whether this judge will agree with that. i mean -- >> they won't. >> there's a big spread here to the deal. we can take a look at albertson's stock price. they paid a $6.85 special dividend but it's still a 30% or so spread to the price. >> that should be, because i just -- look, rodney, the ceo of kroger, oh my god, david, he really and truly is kind of betting the farm on this one. when i say betting the farm, meaning, he's just not ready for this deal to not -- to fail. not unlike, by the way, we're going to have to talk about nippon steel. >> i'm happy to. >> but i had rodney on the show, on "mad money," and his contention is, it's so obvious, it's plain as the nose on your face that you can't ever think

that this is done in order to be able to dominate the grocer in the town. but i will tell you that we always forget that there's more than fresh food. there are aisles upon aisles of things that amazon, amazon same-day, soon, can give you at a great price. so, it's amazon, it's walmart, it's costco, it's target. david, in other words, this deal may actually imperil kroger if they don't get it done. that's not what anyone's thinking. but we saw that they blocked rightte aid. rite aid is a shadow of its former self. so, they were wrong. >> you want to explain quickly? >> rite aid wanted -- we needed rite aid to merge with anybody, a viable competitor. >> and they weren't able to do that. >> cvs and walgreens are retreating rapidly. amazon same-day is aggressive. the rollbacks in price for this stuff -- >> all this coming in the backdrop of the argument about

grocery prices. >> albertson's saying, we're the union alternative, and we do have the union president. harris is not president yet. but the ftc just hates this deal because they don't want a safeway. you know what they call it when heaggan -- >> they need a big win at the ftc. they will claim they've won many cases, be many of the high-profile ones, whether it's microsoft or amgen horizon, they have not proved victorious. >> this is what everyone should remember. they don't want a hag-way. that's what the safeway deal devolved to. hag-way is what they called them. my daughter had a hag-way across the street from her. come on. that's not good for the ftc. >> get ready. you got a "mad dash" coming up. stand something >> i don't think we're going to stand. maybe we'll stand. we'll see. you can take a closer look at my sneakers. take another look at futures. we get started with trading, less than ten minutes from now,

benng otgiinanher big week here at the end of august. more "squawk on the street" straight ahead.

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 - >> i don't think we're going to more "squawk on the street" max makes construction faster, safer and more cost effective than ever before. and with max doing the heavy lifting, even more people can join the team. solar energy is changing the world, aes is changing the world of solar.

since my citi custom cash® card automatically adjusts to earn me more cash back in my top eligible category... suddenly life's feeling a little more automatic. like doors opening wherever i go... [sound of airplane overhead] even the ground is moving for me! y'all seeing this? wild! and i don't even have to activate anything. oooooohhh... automatic sashimi! earn cash back that automatically adjusts to how you spend with the citi custom cash® card. [mind blown explosion noise] welcome back to "squawk on the street." time now for jim's "mad dash." of course, we got about six

minutes until we get started with trading here at the new york stock exchange. it's a name that we've talked a fair amount about lately. >> starbucks. i remember speaking to the great tony t tony corn highser, the fabulous writer, telling me that i didn't know what i was talking about. opco says, hey, they're not ready to jump on the bandwagon, starbucks, now that brian niccol is there. there was in "the new york times" a fabulous article about what to do with starbucks. i urge everybody to read it. i have my own conclusion, which is that you need an express line for people who don't want to make up a triple venti two-pump. that's over. we don't want the oppenheimer and the atomic bomb being made every single time, so i do think that maybe they're right that you shouldn't jump on, but i have such faith in brian niccol that if you sell starbucks, which is part of my portfolio, my charitable trust, if you sell it, you are going to miss a

definitive move by a guy who is actually about throughput, even though "the new york times" doesn't indicate it. >> this is not the definitive move? >> there's going to be more, because the specialty of brian niccol, anybody who's ever watched him on "mad money" knows that his strength is throughput, and that's the problem. we do need a third place. >> that was $20 billion in market value right there. then a loss of $7 billion at chipotle. >> sticking with the same formula that was nonsensical because it is all about throughput, which is brian niccol's specialty. he's going to figure out how to not have the long lines. i hope he addresses the airport. sorry, it's the licensing. don't do that. but i do think that brian niccol is going to be able to come up with a solution for mobile pay, because i don't want the mobile pay mosh pit, and even to make it so it becomes what howard used to like, which is the third place. used to be, pay a little extra so you could sit there and talk. i got to tell you, david, the last place i'm going to sit and talk to you is a starbucks. i'd rather sit and talk to you

on the floor at a dunkin donuts. >> we sit and talk every day right there. >> then, i -- >> we're going to get back to this level one day? >> i think -- >> this is really fun. >> i think brian niccol is going to take it so it's far higher than that. he's also going to solve china. is brian niccol a miracle worker? no. brian niccol is a food guy who's also a technician. that's what you need. you can't just have the triple pump atom bomb being reinvented every time. i don't mean to big boy and little boy. i want triple venti cappuccino with skim wet and i want it now. and he'll give it to me now. >> only a few minutes from vi aopinbe he. don't go anywhere.

nate jones... steps up to the mirror... lines things up... towels off... checks his fidelity app... looks to outside analysts to get a second opinion. nate likes what he sees... same page? -[ dog barks ] and he places the trade... before anyone hears him talking to himself. [ dog whines ] buy u.s. stocks and etfs for as little as $1, with no commissions. talk about easier investing. business. for as little as $1, with no commissions. it's not a nine-to-five proposition.

it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities. with fatigue and light-headedness, i knew something was wrong. then i saw my doctor and found out i have afib, and that means there's about a 5 times greater risk of stroke. symptoms like irregular heartbeat, heart racing, chest pain, shortness of breath, fatigue, or light-headedness, can come and go. but if you have afib, the risk of stroke is always there. if you have one or more symptoms, get checked out. making that appointment can help you get ahead of stroke risk. this is no time to wait.

>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. welcome back. we got an opening bell about 40 seconds from now. you want to squeeze in any thoughts before the applause starts building? >> just talk about amazon for a second. i think that amazon, which has had a very nice run here, may be the key to this market. why am i saying it may not be

nvidia? because quietly, amazon has gone -- i mean, one of the great moves from $160 to $177. did touch all the way up to $180. this was the horrible quarter amazon. hey. looks like you should buy the horrible quarter. >> there it is. opening bell for this monday. let's take a look at the realtime exchange at headquarters. big board, an annual cycling benefit doing the honors. over at the nasdaq, sinclair's tennis channel joined by a champion there as well. let's get to our markets this morning, see how things are shaking out. lot of people, as we often say, not necessarily working or keeping an eye on their screens full-time this week. >> and yet -- >> does that have an impact on liquidity and trading? >> it's funny you mention it. i think one of the untold stories here is that the bank stocks are doing fairly well, but let's really focus on joom for a second. why does jpmorgan hit a high?

well, david, that would be underwriting. that would be m&a. that would be a sense of the pipeline. not just, obviously, lower rates. that is not going to necessarily impact their business. i think that stock's up saying that, you know what, this period is going to be a little more exciting than we think, some deal making, some ipos. there are a lot of ipos waiting in the wing. i think this is a golden time for bankers. right now. not waiting until the end of labor -- >> also not getting a recession would be helpful as well. >> oh, no, this is really -- you have a lot of loans, and the loans basically -- not a lot of defaults. so, i think we look at a lot of different things but maybe we should be looking at the banking system and how robust it is, rather than believe that that's why the fed's cutting. >> jpmorgan is once again sort of separated itself to a certain extent from the pack with a 29% gain this year. >> it's been amazing. >> to be fair, goldman-sachs, obviously, nowhere near it in terms of its market cap.

>> but you and i have both seen rate cut cycles that begin because of a hobbles banking system. >> yes. >> this is not what we have, which is, again, a sign that it's just unemployment going higher, but it is not afflicting jpmorgan? i mean, that's just terrific for the market. terrific for the economy. >> and so, even here, with the stock up substantially during the year, outpacing the s&p, outpacing the group, we still want to buy jpmorgan? >> no, i want to buy bank of america. the reason i want to buy bank of america is that, like apple, it's being kept down by warren buffett's selling. now, i think the -- and you can disagree with the on this, but i think that the old belief that what warren buffett is doing with his stocks is out of touch with reality. >> why? >> we don't know, within berkshire hathaway, who's making these decisions, and i say that because there was a may meeting, the annual meeting, where warren buffett said, look, barring very unusual things, apple remains a

core position, basically. now -- >> it still is, even though they cut it dramatically. the size of it is still very substantial. >> right, and what i would point out is that there's nothing -- it turns out there was nothing dramatic that has changed. so, you have to just believe that maybe there's someone within berkshire hathaway, who has said, you know what, this is too big a holding. in other words, i'm just trying to say, don't panic, bank of america. don't panic. you know that apple was knocked back to $207 on the buffett comments. >> i know, i know. so, are you pointing to the fact that mr. buffett is -- how old is he? 94? you think he's pulling back? >> i think when he names a successor, when -- let me analogize to elliott. because i know we have to talk about elliott and southwest. we don't necessarily think that everything that elliott has done is done with -- not without the authority of the top, but we do know that it's diffuse.

the guy who has the letter sign at southwest is an actual portfolio manager. >> yeah, no, that's true. the activism, in particular, at elliott, i mean, it's run by jesse cohn, a long-time partner. >> i don't see jesse's name on this, but that doesn't mean jesse disagrees with it. >> but it goes up and everybody signs off on these things. you're not able to just go off and do whatever you want. i cannot imagine that the apple position at berkshire, even with mr. buffett about to turn 94 in a few days, august 30th, i cannot imagine that he would not have some say in that. >> well, let's say he had a say. the idea that the stock should drop dramatically on him having a say, i think, is going to turn out to be something you don't want to follow. and i would mention bank of america because the trim of bank of america after a total home run makes a lot of sense. >> yeah. >> but that has knocked bank of america to 40 when i think that bank of america has every reason to be all the way up there at

$44. people may say, jim, so what? i'll take those $4. >> it is amazing. the respective market values of bank of america and jpmorgan, almost exactly it's a double. jpmorgan is $622 billion. bank of america is half that. >> that doesn't make sense to me. >> i know. it is an interesting question. >> bank of america is a very interesting franchise. the travel trust owns wells fargo. that was knocked back. they had an issue with sweeping the cash and how much money they have to return to bank -- to people who bank at the place. but i would tell you, david, that wells has earnings momentum. bank of america is the largest depositor bank. these are all things which just say, jpmorgan is the leader. play the followers. play the followers. jpmorgan's doing remarkably at a time when the fed is cutting. so, i like that. and david, you know, we have to discuss for a second. >> yes. >> what's going on with u.s. steel. >> okay. i left my file upstairs, unfortunately. i didn't know you were going to go there today. i brought my paramount file and

that's getting bigger by the moment, but on u.s. steel, let me give you a key point here. >> yeah, and by the way, i -- you without your file is better than everybody else there is, so i'm not going to go with that file/no file. >> the key consideration, and i know "the new york times" had a long story on it today as well, as far as i've been able to determine, is this $1.4 billion promise that nippon steel has made but has yet to deliver dlid delineate in any way in terms of, is that going to be new investment or simply what is needed to may happeintain curre investment? and they have not gotten any clarity on this, and the union, of course, at this point, remains opposed to the deal, as does, of course, cleveland-cliffs. was he on with you recently? >> yes. i think lorenzo gonzalez is going to get this company >> you do? >> yes, because the union, and our president is still the president, is a union president. >> there is word -- there is,

but there's -- >> at the same time, there are others who would say -- cfius is its own process that is running concurrently. it's not clear at all it's going to be interfered with in any way. that, though, to your point, there have been comments from, obviously, president biden, not to mention the governor of pennsylvania, all about keeping jobs in the -- >> yes. absolutely. now, there is no support by either trump or biden, so they will both say, listen, nippon steel, this cannot fall in their hands. lorenzo gonzales has done an amazing job of amalgamating companies. i know the stock is down 33%, but i would tell you, when the fed star cutting, you might want to be in lorenzo gonzales' stock, and the double play would be if he gets letter x, which i think he's going to. >> there's u.s. steel, trading an enormous spread to the cash deal it agreed with -- i'll have a lot more on this as we get closer to when nippon is going to provide a lot more -- that's what -- that will be a key moment if and when they provide a lot more information about

that $1.4 billion to the point where perhaps the union will have, you know, dave mccaul, who ones runs it, a bit of a different view on it. i don't know that that's going to take place. lorenzo would tell you it never will. >> lorenzo, this morning, reaffirms, don't forget, that the union's with him. >> i know, and i'm sure we'll hear from him soon. >> cleveland-cliffs is a great story company. >> yep. >> at the time of rockefeller, cleveland-cliffs was around. >> yeah. >> and that was the king of cleveland until rockefeller made himself the king, and then he got taxed too high, and he moved away to new york. >> well, i do have my paramount file here for a reason. >> you do? oh my. >> i beg everybody's forgiveness all week because i'm probably going to talk about this. the stories involving this company, just, they never end, whether it's paramount or its predecessor, the old cbs, when its ceo sued its control shareholder. i mean, there are just things

here that happen -- >> you're amused by this because it is really a farce, right? >> i don't know if i would say that, jim. certainly it is being championed by charles phillips, who is the chairman of the special committee of the board of directors of paramount that has been tasked with determining whether this latest proposal from this edgar bronfman group -- and when i say group, i mean group -- is superior to the deal we have talked about endlessly that has been agreed to and signed on by paramount to sell itself to skydance and the private equity firm, redbird, with a lot of help from larry ellison, the sixth richest man in the world. so much to adhere, but let me just keep it short today. well, let me try. >> no, because i have something to go right at you with. >> you ask me questions, but let me get through some of the things here. bronfman may very well increase

his bid yet again but one of the keys is going to be certainty of that financing itself. my understanding is mr. phillips is tasking his other members on the special committee with only one key thing. if they think it's better from a financial standpoint. but if you are advising that special committee, as center view, the investment bank, and the law firm are. you've got to dig down on whether the equity financing is real, for lack of a better term. it's not a legal term. you're talking about keith frankel, a u.s. citizen, mid ocean partners, a billion dollars. simon, duty-free shops, $600 million. john paul, $600 million. you've got to determine whether, in fact, those are real numbers. >> the billionaires have pushed out the millionaires. >> whether these gentlemen are -- and many others are really going to actually be in a position to fulfill this potential commitment that they've made, as i understand

it. lot of letters going back and forth as you might imagine. i understand over the weekend there was presentation, i believe, by bronfman in terms of what they would do at the company. sort of got a wishy-washy response to that. you've got shari redstone there as a control shareholder. but i think that will be a key here, whether mr. phillips wants it or not, you've got to consider the certainty of financing, jim, if you're going to sign on this potential deal, and i will tell you, in the skydance-redbird camp, they certainly are taking the possibility quite seriously that they would lose their deal. as unlikely as it still seems, given the disparity in economics, and i know some will agree, but their deal offers 48% of the b-holders the opportunity to sell their stock at 15 bucks a share. this offers a small -- a far smaller percentage, as of now, because it could increase, to sell at 16. also a premium for the a-holders as well.

these numbers are just hard to imagine that these individuals are really going to step up for these kinds of numbers, so i think there's key question marks and you also get into foreign ownership. 14.4% of the company's currently foreign owned. under this deal, with the likes of fortress or richard or many others, you get to a number that would exceed the 25% foreign ownership cap, so i can give you any number of reasons why i doesn't appear likely to lead to a -- or be a superior proposal, jim, but we'll find out this week. >> there's a strange anomaly here. when i was the hedge fund manager, one of my favorite people to talk to, one of the most insightful people, was charles phillips, chuck phillips, morgan stanley analyst. >> morgan stanley analyst, then went on to senior position at oracle, controlled by larry ellison, the man who is behind the skydance bid, and mr. phillips left the company when mark heard came in.

>> and many people know mr. phillips as being one of the great technology minds of all time. david, he has lined up directly opposite of the ellison bid. >> he is absolutely opposite. >> i don't know if there's -- i did not any there was bad blood. i hope there isn't, but i think that charles phillips is not going to put his name on a deal where we don't know that these people have financing. there's no reason why he would do that. >> i have not spoken directly to phillips. >> he has reputation is on the line here. >> it's my understanding from people who are aware of this that he's made it clear, at least to his fellow members of the special committee, that they should only decide if it's financially a better deal and not be focused on things like certainty of financing. that won't happen, because their advisors won't let that happen, i don't think, and i doubt that they're going to replace those advisors. but we'll be watching. it's going to be more or less decided this week, jim. >> okay, good. i am following the phillips versus ellison saga because nobody else is.

and i have to tell you, i want to emphasize again, this is a guy i revere, and if he says he's got something going, or if he's measuring things, oh my,let stop questioning his judgment. >> again, while it was listed at $475 billion and certainly they couldn't take the company public at that level, they're taking stock at what is 11 bucks right now, but they're -- i mean, i'm sorry, they're taking the stock, saying it's worth $15 nfor that deal. you do you multiples. a lot of that eeblbitda is bake in. so, there is an open argument as to whether it really would be really, truly heavily dilutive, not to mention this is a company that needs cash flow. >> can we get charles phillips on the show? >> i doubt it. >> that would be amazing. >> i will leave that to you. will you book that for me? i don't have an existing relationship. >> i will find a way to do that. pdd has got to be mentioned, by the way. >> let's do it. >> pdd holdings is down $36 or

26%. david, there is a release, a pdd release on the quarter, which is so negative about the company's prospects. >> and we should point out this came out prior to the weekend. this is a large chinese company? why do you know it? temu. where jim buys his wife bathing suits. >> that did not work and that was entirely because of the fire address, i totally respect that, because safety comes first. >> i would say it's ill advised to ever buy your wife a bathing suit, period, but to do it on temu, i think you had ulterior motives, and i was a little concerned. >> it was a negligee/poly ethylene. i could have gone to dow chemical and gotten a similar item for less. >> are you moving on from pdd? >> no. get this. when you look at what amazon had

to deal with is when you looked at what meta had to deal with, it was a dramatic pushback, pull -- pull in ad spending. who? temu. if temu comes back, oh my. you want to buy amazon? i mean, i was out at amazon. this is really important. and meta missed it. by the way -- >> meta, right, from shein and temu -- which is it? >> the you buy temu from amazon, you get a date. if you buy it from temu, whoever that is, you don't really get -- i say if you look at where the geography, where it's from, it's not clear. your don't get a date. let's say you wanted to buy women's lingerie for a woman's birthday. not only is it flammable, but it comes late. >> your point's an important one in the sense if they start investing more, because meta had a couple of quarters -- >> that's the thing. maybe when they say -- >> in terms of the guidance

increase or the excess of what analysts were expecting in spending by those two entities. >> the price point of temu is so low that it's tempting to think that maybe who you buy it for does not particularly mind being involved with the natural gas industry. >> pdd is losing 26% of its value today. >> well, it's -- that's because they have to invest much more. they admitted that. now, look, temu, if you go to temu and don't buy women's lingerie, there's a lot of things there that are so inexpensive, you say, you know what? i have to buy them and own the stock of waste management. buy them, send them right to the landfill, and wm goes up. i recommend, if temu is spending more, you buy waste management. it's called wm, so be careful. but i think wm goes much higher. and by the way, if shein comes back, i mean, you can buy some of the secondary waste companies. >> shein, no longer planning -- certainly not an ipo here in the united states. >> i just think i'm being a little facetious. there are people who want to buy, i think, for very

inexpensive, and i don't want to -- my daughter became an -- one day, she woke up and she was an influencer for one of these companies. she hadn't done anything. >> it happened overnight. >> and they're giving her a giant credit, but she didn't want to do that because she supports the nuclear industry. >> i don't understand what you mean. >> germany -- >> germany? we're talking about germany? >> germany just tore down a working nuclear power plant because they want to be affiliated with russian natural gas to draw the temu story full circle. >> see where we ended up? now we'll get to the bond market, because why not? let's give you a quick look at bonds. we got the move to a certain extent on friday, chair powell making very clear we are getting a rate cut come september 18th. you can take a look, though, the ten-year hanging right around that 3.812%. >> costco opened in japan this weekend, and one in korea.

the korean store is a huge hit. >> thank you, jim. we'll be right back.

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. hey, can you speak french? who, me? i know a few words. if you're struggling to speak a new language, you should tryl, a learning platform designed by over 200 language experts. it's like having your own personal language coach. babbel offers live classes with expert teachers for real world conversation practice. it's totally flexible so you can learn at your own pace and with the right practice and coaching, start speaking a new language in as little as three weeks. go to babble.com to claim your limited time offer today.

let's take a look at the s&p gainers. you can see solar is back. >> that's the interest rate. >> that's rates. devon and eog. >> eog is more oil. >> exxon also up almost 2%. it could be the increase in hostilities in the mideast. up next, we're going to have stock trading with jim.

is it possible to count on my internet like my customers count on me? it is with comcast business. keeping you up and running with our 99.9% network reliability. and security that helps outsmart threats to your data. moaire dida twoo? -your data, too. there's even round-the- clock customer support. so you can be there for your customers. with comcast business, reliability isn't just possible.

it's happening. switch to reliable comcast business internet with security and get started for $49.99 a month. plus ask how to get up to a $500 prepaid card. call today! let's get to stock trading. >> i was going to do a piece about salesforce, salesforce reports this week, too, don't forget. i want to focus on the stocks

people don't follow, these are two partners of nvidia, and there's another way to play, except super micro. the bets are very much against nvidia, synopsys down 2% today. don't forget, these are proxies, proxies for nvidia. people are saying right now with these two stocks, look out. cadence is down 6%, synopsys down 10%. i am steadfast you own nvidia and not trade it. can we just de-emphasize. i recommended this when i named my dog, and let's just that i have some street credence. and i want to thank vinnie at saratoga, behind the counter, who was grateful, and i share --

when i see someone is grateful for the club, it just makes me happy. not teary, but happy. >> that's nice, jim. we always want you to be happy. >> thank you. >> see you later. >> yeah, i like the show. >> i appreciate you giving real time response. i sometimes like when you do it during my interviews as well. >> did you like the charles phillips? >> do you want to go through all of the show? >> no, i want to talk about pop culture. disney has an actual hit. >> you've got to stop talking. we've got to go. >> listen, you've got to wait a couple years. >> he literally just talks to himself. we've got a new record high. don't go anywhere.

hi, my name is damian clark. and if you have both medicare and medicaid, i have some really encouraging news that you'll definitely want to hear. depending on the plans available in your area, you may be eligible to get extra benefits with a humana medicare advantage dual-eligible special needs plan. all these plans include a healthy options allowance. a monthly allowance to help pay for eligible groceries, utilities, rent, and over-the-counter items like vitamins, pain relievers, first-aid supplies and more. the healthy options allowance is loaded onto a prepaid card each month. and whatever you don't spend, carries over from each month. other benefits on these plans include free rides to and from your medical appointments. you pay nothing for covered prescriptions, all year long. all plans have dental coverage which includes 2 free cleanings a year, fillings, and a yearly exam. they also have vision coverage including vision exams and a yearly allowance towards

eyewear such as lenses or contacts. and hearing coverage, which includes routine hearing tests and coverage for hearing aids. you'll also have a $0 copay for the shingles and other routine vaccines at in-network retail pharmacies. plus, your doctor, hospital and pharmacy may already be part of our large humana networks. so, call the number on your screen now to speak with a licensed humana sales agent. wouldn't you love benefits like a monthly allowance to help pay for eligible groceries, utilities, rent and over-the-counter items? so, if you have medicare and medicaid, call the number on your screen now and speak with a licensed humana sales agent. if you're eligible, they can even help enroll you over the phone in a humana medicare advantage dual-eligible special needs plan. so, call now. humana. a more human way to healthcare.

it's time to grow your business. create a website. how? godaddy. coding... nah. but all that writing... nope. ai, done, built. let's get to work. create a beautiful website in minutes with godaddy. good monday morning. welcome to another hour of

"squawk on the street." i'm david faber with seema mody and wilfred frost. sarah and carl have the morning and week off. let's look at our markets. last week of august, you can see the dow hitting a new high. there's the s&p. nasdaq is down a bit. the ten-year treasury, of course, at 3.820. >> we are 30 minutes into the trading session and here are three players we are watching, pinduoduo missing. the company warning revenue growth will face pressure going forward. the stock is down 26%. shares of solaredge popping higher on news the company's ceo is stepping down effective immediately. shares, a huge under-performer on the year, down about 70%. and, yes, we are watching nvidia, a key driver with results coming after the bell wednesday.

shares are up nearly 30% off their early august lows. more on nvidia and how to trade it ahead on the show. i want to start off, of course, by welcoming wilfred back. now it's like you never left. you were here in july, and i'm obviously quite pleased. >> only quite pleased? >> i'm extraordinarily pleased to have you back on the shores and on the set again. >> it's always great to be back. i love this place. it's always fun to be back. it does feel quite recent since the first week of july. the markets have had a roller coaster ride since then, and it's crazy to see how quickly it pulled back, whether we're talking about the vix, the ten-year, the expectations for rate cuts, the nasdaq in particular. they're all basically where they were in early july, but the snapshot doesn't tell you the full story. >> not at all. we had the vicious rotation, of course, into smaller cap names that was relatively brief.

we've had, as you say, the decline, and then we've gotten a large rally, even as recently as friday on the back of some unexpectedly dovish comments from the fed chair, making it plain as can be that rates will be lower come the next meeting. >> seems like fed chair powell delivered what the market wanted and now it's a question of the rate cut in september. it's a bit more exciting to cover here in new york than the uk? >> definitely. seven of your companies are bigger, three of them maybe at the moment. way bigger than most companies in the ftse. what's interesting is the u.s. dollar, which has moved a bit. interested to see if, from here, we're just seeing some interest rate differentials play out and start to weaken the u.s. dollar, or whether we're moving into a newer phase structurally over the next few years.

because the dollar has been so weak against many currencies, that's something to keep on. the other thing we haven't touched on is oil prices. again, lots of factors you would have thought might have given oil more of a bid than it's had. today there are geopolitical concerns. but something to keep an eye on. with all the sudden positivity toward risk assets over the last week or ten days, if oil prices continue to ramp to that tune, 3.7% in a session, still below 80, keep an eye on that. >> as you might expect, a number of the companies that are involved in that business are seeing their stocks higher. >> we don't talk enough about energy prices when it comes to nvidia. ai is unbelievably -- >> it is. >> we talk a lot about power. obviously, that's different than oil. >> on sky news. >> you're talking even coal and whatever powers the grid here in the united states. but it is a huge issue.

i'm happy to entertain it this week. >> i raised this with the producing team. we do talk about it. what i should have prefaced is, i don't get the chance to talk about it enough and i'm looking forward to doing so. maybe paramount. >> whatever you want to talk about, i'm here for you. right now we're going to talk about the markets, the dow hit a new record high this morning after fed chair powell's speech on friday saying the time has come for policy to adjust, and now we all expect that there will be a september rate cut. let's get over to bob pisani with more on what to watch. >> hello, great to see you, as always. we've got an interday high on the dow, everybody is watching the s&p, 5657 was the old closing high that was july 16th, and we're within spitting distance of that. the important thing we have seen recently is the broadening out of the market. don't expect too much this week. this is probably the lightest or

second lightest volume week of the year, christmas week and this week are traditionally the two lightest trading volume weeks of the year. what's important is the breadth. 4 to 1 advancing to declining stocks, and that has been the story for the last four or five weeks, broadening out of the market. let's look at the sectors. energy, lagging a little bit recently, but overall we're seeing really strong moves, moving with energy recently. utilities, real estate, banks, which have been strong. if you look at what's going on with the market internals, breadth has been expanding, that's the most important thing. new highs have been rising as well. corporate buybacks have been notably strong in the last few weeks. we'll be going into what we call a blackout period when we get into earnings. the put/call ratio is down. sometimes higher levels are good contrarian indicators, but that's been lower. less fear in the market.

if you want to complain about something, the valuations remain on the high side. what you saw is the definition of a strong market. the internals have been fantastic. and it's happening at this g gigantic rotation. nvidia is 7% from its old high, but with the s&p up 2%, mega cap tech are not huge leaders. microsoft has been flat, amazon is down this month, alphabetis down this month. it's not that they're doing terrible. they're just not great market leaders like they were. instead, broadening is occurring in things like value. walmart has been on a tear recently, berkshire hathaway, some banks and classic value names. johnson & johnson, proctor & gamble. health care, united health has been strong. some consumer discretionary like mcdonald's. this is what i mean when i talk

about the rotation. interest rate sensitive sectors, what's happened since the market bottomed, tech has still led, but consumer discretionary like mcdonald's and nike have been on a tear, banks have generally improved. again, banks are economically sensitive. that's a really good sign. they would not be buying banks if they thought there was a recession coming. we're seeing rotation in values, small cap coming back a little bit. more confidence in the soft landing, i would say, overall here. less fear of a recession, that's helping the cyclicles. the soft landing scenario is still intact. inflation waning, job growth slowing, earnings growth for the s&p overall, 10% in 2024, and gdp, 2.9%, the atlanta fed estimates. that is why the stock market is holding up so well, these four factors. you're not going to have a

dramatic drop in the stock market with earnings holding up, job growth strong and an expected fed rate cut coming. if i had my choice, when i poll people, they would like to see a 25 basis point cut, because that would be more consistently with the soft landing scenario. if you get 4.2%, that's what we're expecting for the jobs number, the unemployment number next week, i think most people would say 25 basis. if you get 3.4%, you can make an argument. 25 is more consistent with the soft landing. we're watching the s&p get near a new high. it's flat right now. >> great stuff. thank you so much for that. half a percent gain for the dow. let's talk more about it and how to position your portfolio from here. joining us, senior portfolio manager sandy pomeroy. sandy, i'll start with you in

terms of what you're expecting in terms of rate cuts. not so much the next meeting, but by year end. the market is pricing in 100 basis points by year end. is there room for the market to be disappointed? >> i would say this is not my area of expertise and i don't have a strong view on it. >> do you not mind how many rates are there are for equity positioning? >> i would just say that cutting rates is a little better for growth in the economy, so i would say in general that's good for equities. i know that chris has done a lot of work, though, in looking at the fed futures and we were talking about it earlier. you might have a better opinion on it. >> what's your take? >> i think it's a signaling effect and it gives businesses the confidence that they can start investing. they know the cost of capital is going to be falling, and i don't think it matters whether they cut two times or three or four. it's a matter they're cutting and rates are trending. whether we get to 3% or 4% sometime next year, i don't

think it's as important as the fact they're cutting rates. >> what does it do to the longer end? we know what it does to the short end. how important is it in terms of your then sector selection from there? >> in terms of the long end, i see some upper pressure because i think expectations are going to improve as we get through the end of the year into next year. probably get some inflation coming back into the system. and that benefits financials, and that's why we're telling investors that you want to be overweight financials. financials are slightly outperforming the s&p 500. they've had a stealth bull market underneath the surface in some stocks. goldman sachs is up more than half of the mag 7. >> hitting another all-time high. >> equity income, so that obviously means dividends to a certain extent. i don't know. do they start to look more attractive as rates come down? >> definitely. one of the competitions for dividend yielding stocks so far

has been the fact that the short-term rate was about 5%. people were thinking, if i just want income, why not think about putting it in short-term bonds or t-bills. now you're going to have more competition in a good way. i think the key thing is that dividend stocks grow over time, bonds don't. if we get any kind of resumption of inflation with a little bit more growth, that is definitely going to favor dividend paying equities. so you get the income, you get the growth, and you get the dividend increases. all good stories for dividend paying stocks. >> stock picking still has to matter. i notice merck up there. after last quarter, they declined double digits. your field goes up, but your total return is not. >> we look at all of our pharmaceutical companies in the exact same way. we do dcfs of every drug in the portfolio that has been approved and then look and see whether we're overpaying for the pipeline. when we bought merck it

literally was trading at the discounted cash value of every single drug they had that had been approved. they've got great drugs, good pipeline drugs and we think there's a lot of potential. we think it's undervalued and this is a buying opportunity from our perspective. there are a lot of drugs that come off patent. >> not that represent almost half of their sales. >> and eliquis is going to be the same way. it was a big discovery back in the day. the other thing is the i.r.a. drug bill, getting more information about what that's going to mean for pricing. the pharmaceutical aspect has been under pressure over the last several months, actually. >> we'll see how the election also plays into that. chris, what do you make of the internals of this market, the speed at which the market has rallied, and how big tech hasn't played as big of a role?

bob was pointing out amazon and microsoft still down. >> i think it's consistent with growth expectations bottoming. if you look at gdp consensus estimates, they've started to rise. people are getting more positive on investment spending. the consumer has been a mixed bag so far. but i think that investors are saying the fed is going to cut, we're going to get that soft landing, and we're going so see a rebound in some cyclical sectors. you're seeing it underneath the surface, friday's price action, small caps ripping, you've seen it in equal weight, outperforming the market weight. there's nothing wrong with tech fundamentals, but you saw the past earning season, tech companies were beating it as they had the eight quarters prior because analysts' expectations will caught up. >> finally, chris, you say you're a buyer of semis? >> all semis across the board.

we think the ism will hit 50 by the end of the year and semis are the best to be. >> you have a chance today to buy them cheaper. they're actually down. how important is nvidia's number? >> i think nvidia is the market. >> you do? >> yes. >> it's really important? >> it's really important, yes. >> the trade-off for being bullish is quite risky, then, it's all on one stock? >> i think it's going to be choppy. in election seasonality plays a big role. october is worse in election years, september is usually a weaker month. our price target for the end of the year is 5700 for the s&p and we're almost touching that in these days. so i think the near-term risks are skewed to the downside. the dow hitting a record high. here is our roadmap for the rest of the hour. yes, the nvidia effect. the tech giant reporting

earnings this week with the stock up more than 160% this year. we have an incredible story of one individual investor who bought early and never sold a penny. you have to hear about this. plus, boeing's struggles. the company's spacecraft returning from the iss without the astronauts. the latest. and the fed chair has said it's time to cut rates. we're going to take a closer look at the new challenges that come from getting the pace of rate cuts correct. big show for you. don't go anywhere. icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

welcome back to "squawk on the street." nvidia gearing up to report earnings this week. the stock has been on fire since going public in january of 1999. up more than 500,000 percent, and a lot of individual investors have been cashing in on the craze. >> as a teenager, when i was growing up, i built computers. i would source a lot of those computer components, including nvidia's graphic cards. so because i was buying them very frequently, i figured it would be a good idea to own a piece of their business as well. so, i bought approximately

$25,000 of nvidia shares in may of 2016, and i've still held on to the majority of that original investment, and those shares are worth a little over $2 million. it's been a roller coaster, for sure. in 2021, when interest rates were lower and cryptos were increasing in popularity, there was definitely a boom in nvidia's shares during that time. in 2022, that was a period where interest rates were starting to rise and the crypto bubble started to burst a little bit. and so, there was a big drop of nvidia stock, by over half during that period, which was a painful period to go through. i asked myself, do i think the stock will be trading higher than where it is today five years from now? and so long as i can answer that as a yes, then i, you know, have the conviction to hold my

position. >> just goes to show the growing enthusiasm, not just from hedge funds, but retail investors as well. there's a lot of excitement, not just around nvidia, but i think also ceo jensen huang, his passionate remarks about the ai revolution that's created hype. >> credit to nelson young is not just growing enthusiasm, he got in so long ago and hasn't sold any, which makes me nervous. take a little off the table, maybe. but, also, i hate to say this because these packages are great, but it also slightly says to me a moment of marking the top, potentially, that we're bringing in the stories of how much money people have made already in this extraordinary trend. it's just something to keep in mind, i think. >> you heard our last guest say it is the market, that's one reason why we're so focused on the earnings when we come after the bell on wednesday. we'll be dealing with it thursday morning in terms of what we see.

and, again, it comes back to sort of quelling concerns of a demand air pocket, if there would be one, as he did last quarter, jensen, and whether he'll do that again this quarter. >> expectations, to your point, are very high going into this report. the company has beat revenue estimates by $2 billion consecutively ever since the july 2023 report. and this morning wall street very positive on the name canter fitzgerald, a raise. ubs is expecting nvidia to reiterate that blackwell, it's latest graphics processing unit platform is on track. they're downplaying the risk of a delay. and morgan stanley naming nvidia a top pick. it had that mini drop in early august, but now it's up about 30% since that august 1st low. >> the interesting thing as well, jumping out and looking at some notes, it's back up to sort of 40 times pe. it got down to close to 30 in the early part of august in the

market pullback. if you think it can maintain the margins, if you think it can maintain some of the growth, that can kind of be justified. it's obviously grown into an even higher pe initially over the last couple years. when they pull out the comparison of the mag 7, what jumps out to me is how expensive microsoft and apple are, which don't have quite such good margins and growth, certainly not on the top line for apple. maybe not 40 times pe, but still, like, 30 times 12-month forward pe. if you're not growing fast, that's pretty striking. >> and guidance will be in the spotlight for nvidia. and any signs that the capex from the hyper scalers is starting to fade in the second half of 2024. there's been a big debate about what is the return on investment of ai. can these hyper-scalers continue to spend as much as they have? we know hyper scaler spend is

strongly correlated with semiconductor sales. >> to your point, i guess morgan stanley, we see guidance 33 to 34 billion revenue number range to be unchanged, which would be roughly that $2 billion addition that you discussed, seema, in terms of guidance. >> again, the guidance will be key. and also china. there's a report that nvidia is working on a specific china chip that appeases the export controls that the u.s. commerce department currently has in place. nvidia's revenue in china was around 25% of total sales just a couple years ago. the commerce department reacted with expert controls. now it's less than 5%. curious if this new potential chip could change that story. >> even more credit to them that they've lost 20% of their revenue source. just an unbelievable story. we'll look forward to their earnings on wednesday, and of course all of the reaction live in the morning on thursday as

well. after the break, today wall street's biggest calls when it comes to names like nike. what do investors need to know?

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. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

we've got a number of research calls from wall street analysts to get to this morning. dom chu was the man to tell us what occurred. >> let's start with the dow component. we're talking nike here because stifel is slashing estimates for nike's north american business. they're saying the footwear giant's dominance is fading somewhat as rivals like new balance and adidas gain ground. moving between gains and losses overall. the last few days it's been volatile. planet fitness hitting a 52-week high. the stock has been added as a bullish pick and say there's a 92 price target. the company says planet

fitness's new leadership was addressed, and has better marketing. so planet fitness shares on the move. d.r. horton climbing to new all-time highs. wells fargo reiterated the home builder saying it has an attractive risk/reward and the prices offer them defense against rising inventories. bj's wholesale getting an upgrade to neutral following earnings last week. jpmorgan says it expects modest reflation and says they're benefiting from efforts to drive market share and from consumers trading down in certain products. those shares up half a percent. wayfair slipping after a downgrade from argus, saying the company's prospects in the current environment of higher rates and home sales are muted. you see the shares down about one half of one percent.

for those and other top onlyist ca -- analyst calls, head over to cnbc.com. things moving around. i'll send things back over to you. >> excellent stuff, as always. thank you so much. dom chu for us. now time for a cnbc news update. let's get to contessa. >> ukrainian officials say russia launched drones and missiles today, killing five people as the strikes targeted facilities nationwide. power cuts and water shortages have been reported in several regions. at least one person is dead, several injured after a massive landslide in the alaska town of kepchikan. it caused evacuations along the coast. officials are concerned about a secondary landslide. they're posting crews in the area to respond. and ikea is taking on the likes of ebay and craigslist, launching a marketplace for

customers to sell secondhand furniture. they tell the financial times it will be tested in spain and norway with the aim of rolling it out globally. it's part of an overhaul at ikea as it moves toward a business offering and services such as assembly. that's the news for now. >> thank you. a quick market check. s&p 500 is down about 5. the nasdaq is sitting out, down about three-quarters of one percent. fed chair jerome powell signaling it's time for a rate cut. we have an economist joining us with his take next. don't go away.

at the barnes firm, we handle construction accident cases. have you fallen from a height, been hit by a vehicle or a falling object, tripped on job site debris or anything else? call the barnes firm now. you might have questions about workers' comp, lost time from work, medical bills, or if you could get fired for being injured. call the barnes firm to get the answers and help you need. injured on a job site? call us now. ♪ the barnes firm, injury attorneys ♪ ♪ call 1-800 eight million ♪ welcome back. we've got some economic data crossing the tape from the dallas fed. let's get to steve. >> the dallas fed texas manufacturing outlook, that's an

improvement from minus 17. the internals are not that bad. production went positive from negative. capacity a little less negative. new orders a little less negative. shipments barely positive. employment did go down from positive. that's interesting. capex, very positive, plus 15.7. that's one of the better numbers. so interesting what's happening. obviously, very energy related. also, you know, quite diversified. beyond the big headline everybody is talking about, that fed chair jay powell signalled the rate cuts, there was a notable calm about the global outlook. take a look at the differences between this jackson hole and the prior. the fedgathered in 2022, a 55% probability of a recession, according to our cnbc survey at

the time. a near 9% cpi. rates on the way up from 230 to 538 from the jackson hole meeting in 2022. some improvement in '23 in inflation, but still elevated recession chance. rates were signalled to remain on hold and that's exactly what they did. big difference this year. a diminished recession probability, you see that on the right-hand side of your screen. much lower inflation, and the market now predicting 200 basis points to come. that's the futures outlook in the last number there. keys to this include the fed has ammunition to address weakness if it emerges, though no real sense of an emergency. central banks are still re restrictive. of course, emerging markets are remaining stable despite fears that those rate hikes could cause blowups, especially with the currency and dollar strength out there. obviously, still many challenges ahead. they were acknowledged at the

meeting. some members sound like they might want to move more slowly than others and they'll debate about how far they go. there remain high fiscal deficits, and it doesn't promise any relief. compared to prior years, the central banks, they came and went from jackson hole with uncertainty, but much less a sense of crisis and urgency, wilf. >> steve, great stuff. thank you so much for that. our next guest is forecasting a string of consecutive 25 point cuts beginning in september and extending. goldman sachs economist joins us now. when it comes to september, how important is this august employment report going to be as to whether it remains a possibility that we get 50 basis points? >> i think that's really the key factor. we heard from powell, we heard from the minutes that they will be cutting, but the decision

about 25 versus 50 has been deferred to that report. we've seen the unemployment rate come upenough that it's hard to sweep that under the rug. there's some ambiguity about how many jobs are we creating and how many are we going to need to create to keep up with labor supply growth now that immigration is slowing. i think we'll learn quite a bit. our assumption is that the august employment report will look better than the july report. maybe some of those temporary layoffs in july come back, so that the unemployment rate comes down, and job growth, we think, is trending closer to 150 than the 114 we saw last month. if that's right, then i feel pretty confident that they will go ahead with the 25 basis points cut. i think we heard clearly from chair powell at jackson hole that their tolerance for further labor market softening has run out. if i'm wrong, the august report is worse than we think, i think

a 50 basis point would be likely. >> where does this take us? obviously, if you're right and we get 25 in september, november and december, and then next year, i guess, we get a few more, where does the terminal rate fall to? >> we have the terminal rate at three and a quarter to three and a half. part of the reason is we've long had a view that neutral is not quite as low as people thought. i think the market has reassessed neutral upward and i expect that the fed is going to reassess neutral higher as well. it's already come up from 25 to 275. i think they'll have a discussion over the coming year and wind up higher. i would also say monetary policy is not the only thing that affects the strength of the economy. last cycle we were grappling with these post financial crisis headwinds that restrained demand. now we have a very easy fiscal stance and very resilient risk sentiment.

and those things are offset and diluted the impact of higher rates, so that whatever the fed concludes long run neutral is, i think it will wind up feeling comfortable leaving the funds rate a touch higher knowing that we can still separate at full employment because we have these other forces boosting demand. >> david, on that point, what do you make of the move in the dollar, which i believe now is at a two-year low? what does that tell you about what the fed will do, and does that level of weakness make sense, given what we're expecting in september? >> i think we're forecasting 25 basis point cuts, the market is completely justified in attaching some probability to larger cuts. i think the message that we heard from chair powell at jackson hole is that they are not going to be held back by inflation anxiety anymore, and their tolerance for weakening in the labor market data has run out. if we do see any further signs of softness, they probably would go ahead with the 50 basis point

cut. so as that message has come through clearly, as we've gotten some further signs of soft points in the labor market, my baseline is that everything will be fine. i think there is a plausible risk that the fed might have to go a little more quickly. i think the market is justified in pricing that. that's probably driven the downward move in rates we've seen and the dollar moves on the back of that. >> david, do you think we might get the full hundred basis points by december that most market participants are pricing in, without the economy getting meaningfully worse? could you get the perfect goldilocks scenario? >> i think you need a sign of further softness for the fed to deliver a 50 basis point cut. historically when the fed has moved for quickly than 25 base points when they've done inter-meeting cuts, usually

there has been some obvious crisis going on. the other scenarios, jobless claims have been running closer to 400,000 than 200,000, so there was a sense of urgency that i don't think quite exists at the moment. so i doubt we'll get the full hundred. my guess would be that we get a series of 25s unless we get some further data that really makes them a bit more concerned. >> david, thank you. appreciate it. >> thank you. worth mentioning that we are just more than one percent on the nasdaq. the s&p is now in the red, down about a third of one percent. still to come, boeing returning from the international space station, but without the astronauts who took it here. find out why after this short break. back in two.

over the last year, glp 1s and weight loss have been front and center for the health care sector. today we're going to focus on the biggest names in pharma and why leadership in that space may be about to change. stayun ted. "power lunch," 2:00 p.m. today, the market navigator. i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star.

it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah. more headaches for boeing this weekend. the company's starliner capsule returns from the international space station without the astronauts that brought them there -- or it brought there. morgan has been tracking this. we talked about this on set a couple of weeks ago, of course. i hope they packed for a long voyage. >> this is what's happening, eight days becomes eight months. another black eye for boeing after nasa said it would send the starliner capsule home early, they'll use the dragon to bring them back in the

international space station in february, this after months of test due to starliner's technical issues. this is a decision nasa did not make lightly. >> i don't think it's a trust issue at all. i don't think we're rebuilding trust. i think we're looking at the data and we view the data and the uncertainty that's there differently than boeing does. it's not a matter of trust. it's our technical expertise and our experience that we have to balance. >> now, calling that comment there concerning, writing, quote, this suggests gaps in boeing's technical workforce and supports our view that the company has strayed from its strong engineering foundations, adding this points to the magnitude facing the new ceo boeing has spent $6 billion and a half a billion for starliner. what happens for the manned space flight business? does nasa give boeing another

opportunity? it seems like they will. does boeing take more charges to do that? how much has it racked up going through this space flight? or does it scuttle the business altogether? boeing is saying the focus remains to ensuring the safety of the crew and spacecraft. we're working closely with fas -- nasa on the return of starliner. the president stating, quote, spacex stands ready to support however we can. they're on track with their 14th flight tomorrow, which would include a private space walk, suits, and two crew members that are spacex employees. you could call this a stark juxtaposition. shares of boeing are down almost one percent. >> in this race, space x taking a victory lap here, morgan? >> human space flight is hard. whenever you're doing a first

flight with a new vehicle, there's going to be issues. but this certainly speaks to some of the troubles and challenges we've seen with this program for starliner, for boeing, for a number of years. when you look at commercial space and take a step back, i feel loike i've said this so may times, it's really spacex and everyone else, when it comes to rocket launches and human space flight. it speaks to, perhaps, why spacex is such a hot investment in the private markets and is dealing with upwards of a $200 billion valuation, according to the most recent reporting done around that. a lot of the valuation of spacex these days is tied to starlink, it's satellite service. but the fact it has this incredible launch cadence, the fact that it has been building out so many pieces of this commercial business, this is one more example of its increased reliability over the years. >> if it went public at that level, it would have a market

cap well in excess of that of boeing. you know, i wonder, morgan, for boeing, with the new ceo, what are the risks of just saying, enough with this, let's just focus on making airplanes? >> i think that's exactly what you're seeing, really, across some of the too. there's been a lot of -- david, i'm sure you're very aware of this. there's been a lot of speculation over the last couple of years, i'd call it, but particularly the last couple of months that maybe you see the broader space in defense business, boeing decides to do something with it, spin it off, sell it. we know the rocket it shares with lockheed martin, ula, has been on the auction block for a while. you are starting to see that increased cadence of analysis, research and, perhaps, even calls for this business to be -- something to happen or change with this business or boeing to, perhaps, look at existing it. we'll see. seema? >> boeing down 33% this year.

morgan, thank you. coming up next, is china uninv uninvestable? count vil on foreign relations michael froman joins us at 11:00. the first stadium built for a women's professional sports team that sold out over 11,000 tickets. those details are next. 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

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.

gina costa... looking simply stunning... what's this? she's opening her fidelity app.... to buy that stock... with no fees or commissions... because what does gina got? gina's got the look. that never gets old. talk about easier investing.

the first stadium built for a professional women's team opened earlier this year with tickets still selling out and at premium prices. let's get to leslie picker with those details. leslie, i love the story. >> you and i both have that kansas city connection, so i know you and i both probably know people well who can't get tickets to this stadium. it's remarkable when you look back because when the co-owners of the kansas city current decided they wanted to build a stadium, dozens of banks initially turned them down. >> there was no precedent for, you know, a women's purpose built facility for professional sports team, so we kind of had that as our achilles heel.

people are saying, how do you value the team? what do we think about the projections you're showing us? it was quite a struggle. >> the two co-owners, jpmorgan alums, were able to finance the state-of-the-art stadium. in the first five months since cpkc stadium opened its doors, the longs have proved naysayers long, even standing room only tickets for $25 tend to resell up to $100. the economic benefits of a purpose-built stadium go beyond ticket sales. they benefit from sponsorships and naming rights and the overall symbolance of purpose. >> you have to believe in the long-term proposition of the league and the team and the sport and professional women's sports. the number of failed women's leagues that have been out there, you know, for years and years is real.

and i think people were afraid. and now they really see the opportunity and it -- it feels like there's been such a change. like, this is -- people just completely changed the way they think about women's sports and it doesn't feel temporary or transient at all. >> now, the kansas city current are ranked third in the league. something the longs attribute to the stadium being a place where players want to play, so it helps them from a recruiting and retention standpoint, guys. >> leslie, jpmorgan, the sole bank that's financed this and that -- because they see an economic benefit in this loan as well or purely kind of leaning on those personal connections that those jpm alums would have? >> you know well, jpmorgan wouldn't make a loan if they didn't see an economic benefit. the longs were convincing in their economic model and they worked at jpmorgan, and credit hedge fund, they know what types of things to model and the types

of things a banker can resonate with, equity investing and offset by missouri tax credits as well. >> leslie, thank you. leslie picker. quick programming note as we close out this hour, join cnbc in boardroom's game plan conference on september 10th in l.a. athletes, owners, investors, innovators will break down where they see opportunity. scan the qr code to register. as for our coverage of this market, broadly okay, but tech definitely getting hit. concerns, perhaps, around nvidia. we shall see. a lot more coverage coming your way. you'll find them in cities, towns and suburbs all across america. millions of americans who have medicare and medicaid but may be missing

benefits they could really use. extra benefits they may be eligible to receive at no extra cost. and if you have medicare and medicaid, you may be able to get extra benefits, too, through a humana medicare advantage dual-eligible special needs plan. call now to see if there's a plan in your area and to see if you qualify. all of these plans include doctor, hospital and prescription drug coverage. plus, something really special, the humana healthy options allowance. your allowance. to help pay for essentials like eligible groceries, utilities and rent. even over-the-counter items. and whatever you don't spend gets carried over to the next month. plus, with a humana medicare advantage dual-eligible special needs plan you'll get other important benefits. all of these plans include dental coverage. with two free cleanings a year. plus, fillings, and a yearly exam. vision coverage, including eye exams and a yearly allowance for eye wear. and hearing benefits. including

routine hearing exams and coverage toward hearing aids. you'll also get free rides to and from medical appointments. best of all, you'll pay nothing for covered prescriptions, even brand name ones, all year long. and zero dollars for many routine vaccines at in-network retail pharmacies. plus, you'll have access to humana's large networks of doctors and specialists. so, if you have medicare and medicaid, call now to see if there's a plan in your area that will give you extra benefits, including an allowance to help pay for essentials. plus, no-cost for covered prescriptions. and coverage for routine dental, vision and hearing. a knowledgeable, licensed humana sales agent will explain your coverage options. and, if you're eligible, help you enroll over the phone. it's that easy! call today and we'll also send this free guide. humana. a more human way to healthcare. when we started feeding bogie the farmer's dog, he lost so much weight. pre-portioned packs makes it really easy to keep him lean and healthy.

in the morning, he flies up the stairs and hops up on my bed. in the past, he would not have been able to do any of those things. good monday morning to you. welcome to "money movers." i'm wilfred frost with seema mody. coming up, the street debates the race of rate cuts as powell says the time has come for looser monetary policy. citi's global head of macro is here. former u.s. trade representative, president of cfr michael