be very data-point dependent. we've gut nvidia earnings coming out after the close tomorrow. so there's a lot of things that potential could drive markets down in the short run. and we prefer to step in more actively on those sorts of pullbacks. carol, thanks a lot. >> thank. >> all right. that does it for us today. >> to be continued. >> to be continued. >> make sure you join us tomorrow. that's right. "squawk on the street" begins right now. we'll see you tomorrow. ♪ good tuesday morning, welcome to "squawk on the street." i'm david faber, he is jim cramer. we're live from the new york stock exchange. carl has the morning off. let's get a look at futures as we get ready for trading a half hour from now, we're set up for lower. >> nothing happened since i got up at 3:30, nothing. >> okay. thanks for that color. >> no problem. >> let's get to road map, tech watch, nvidia reporting

quarterly results tomorrow after the bell. apple also announcing its succession plan for its longtime cfo, and bronfman drops its bid for paramount, for that deal signed up. and eli lilly slashes the cost of its blockbuster weight loss drug. it's hoping to boost access, ease some supply constraints. we will discuss. but let's start with the markets. the day after the dow hit a record close, of course, as our viewers will know, i don't care about the dow. what i care about and what many market participants measure themselves against is the s&p. or even the nasdaq. >> focus is on the nasdaq. >> and yesterday was not a really good day, really, for the nasdaq. certainly not for tech. and it does seem related to perhaps some concerns about these nvidia earnings that will be here after the close? >> two-fold, they can't aim it

therefore they want to sell it. that's the mind-set. there's just not enough money coming in. what's happened is, typically, when you have a fed cut, you have money going in. and it goes into the hot group. and then it doesn't come out of the not so hot. actually goes in a little less. typi typically, what would happen, you would have some upside to tech stocks but the big upside is general mills/colgate. and that didn't happen yesterday. what happened was it was entirely money out of the sector. and then money into another. there's not enough money coming in. even though rates. >> reporter: coming down, people are stuck in the two-year. they love the two-year. >> and why not. there is this belief somehow as rates come down, people will flee the money markets of which they've been getting a nice return, so to speak. >> right. >> certainly, versus what they had for ten years prior.

and enter the equity markets again. has that happened? >> yes, it has. it has. they can flood the equity markets. you need the corporate buybacks bigger than they are. they slacked off. and, david, you have to have sudden rate cuts. right now, a quarter rate cut, big deal. >> people are not going to leave money markets? >> no. we should talk about this with nvidia. nvidia is weighing on everyone's mind. the idea that this one stock in this one report be so crucial seems fatious to me. you know there are companies doing well with a.i., meta, of course. you know there are companying trying gtps. and you know that demand is high. so what has to happen? i'm going to put the jensen law until question, which is what does it mean to be constantly so

examined, so microscopic, that it carries the market? i don't think you expect that. yesterday, i got an email from someone who has said, i've had enough, this guy's cost me a lot of money which is very rare because he keeps selling a lot. well, it's true, he does sell a lot of stock. >> jensen huang sells a lot of stock? >> he has a lot of stock. any estate planner would say, good job, you're not affecting the market, you're not just slamming the piece down. but, no i'm saying there isn't anything about nvidia right now that isn't under scrutiny. and long knives. >> because of 500 billion years ago? >> thank you. because it frankly undermines all of the a.i. hopes and dreams. period. so if in fact it does not have

the guidance that is anticipated or does not exceed, it will some in way be a reflection of the fact those hopes and dreams are not going to be realized at least in the time frame that the market expects. >> i like your analysis. i think one of the problems is we can't visualize what jensen can see. it's almost like it is an invisible man to us, but he hasn't fully formed. he has a team a robot team. and he has a team that's just based on basically what humans are like. remember, jensen always says, you can't have robots that are not humans, because everything is designed to be human. but you can make robots, we just don't know what to do with them yet. if robots is in starbucks coffee -- that's pretty good. it can wait online. >> it can change everything. >> it's waiting in line behind someone. >> it's not a question of when,

i mean, it's not a question of whether this is coming in some ways, it's a matter of when, jim. and the markets are still trying to figure that out. by the way, morgan stanley today, katy huberty who you like. the global tech team projects the providers will provide $176 billion of operating cash flow inendar year 2025. and 40% and suggesting the hyper scalers' pockets are still deep enough for further spending. >> well, look, i think we have to -- >> and, therefore, don't worry about nvidia's upcoming release, expected a strong beat and raise to spell concern and drive rebounds to the overall a.i. chains. those are pretty bullish words. >> those are very bullish. and i wanted to hang my hat on it, my problem is if you're on a

jensen huang call. there's very little hype in the call. the last call was actually the most bullish. >> what's your point in mentioning that? what do you mean? >> because it's actual is going to be important. when you have a minutia call, with the possibility of billing that they have to do a buyback of humongous size that could buy back about 10% of the stock, but moving on to apple, he was the man who said i've got to accelerate the buyback. >> there he is. let's turn to apple. you helped us make that turn. by the way, it did announce its iphone event for september 9th. going to unveil the new model, apple watches as well, the a.i.-compatible model.

and the cfo, you just heard his name, stepping down from his role, at the beginning of next year, apple's current vice president of analysis is going to take over as the cfo. first, give me your thoughts on that. >> okay. this is a change. luka maestri is someone who has a lot of control over pricing, what they do, but what i really love to see, they controlled that buyback. it was not just one of these useful idiot buyback buyers, he actually worked and saw that stock was down a lot and took advantage of it. now, i used to run a lot of buybacks at goldman. >> a hundred years ago. >> no, i think it was when lincoln was president. >> you invented the buyback, didn't you call and say you guys to reduce your flow? >> that before i invent ed. on cnbc.com, 20% off the best --

>> when you were at goldman in the '70s -- >> not the '70s, steve. what we have, i want you every day tobuy 100,000 shares. >> right. >> no matter what. >> right. >> then there were companies that would say, look, use your brain, if the stock gets hammered go in and buy with both fists, but the latter understands the moments. >> and they have an awfully large buyback. >> he announced this buyback. i think the analysts missed it. but i do think there are people out there saying this guy is not your regular cfo. >> do you know anything about this guy? we are talking about the largest company? >> i do not. i did speak to luca maestri,

sometimes, you're in the presence of greatness. i have to tell you, we rarely ever talk about the presence of greatness on the show with people who know what they're doing. collette crescent, this guy, in many ways talked -- >> and thrich galante. >> rich galante was the man who said, you know what, your price is too high. we decided to go in at costco -- >> it's extremely important at certain companies that have a great deal of influence. other companies, not as much. >> right, well some people are fact-toters. and annette esplanade at google. >> negative. 70%, highly regards in the investment community. >> well, he is. he's going to stick around for a while.

look, when i read it -- was i disappointed? >> sticking around for a number of months. >> yeah. i didn't know that the average span of a cfo was ten years. i did not know that. >> i didn't either, longer than ceos. >> yeah, so he did -- that's when he stayed. and rich galante was more than 30 years cfo. >> that's a long time. >> not average. by the way, the guy with the hot dog -- the hot dog deal -- >> i know they do, a buck 50, right? >> what is it -- what do you call your stadium? citi field? >> citi field, yes, it's a lovely stadium. >> but i have to tell you that costco, they've not written anything negative about the cfo change because it's very, very good. >> we're going to talk about kroger, day one, the u.s. government versus kroger and albertson's. a lot of other things to talk

about here, we will hit paramount, may be the last week that edward bronfman drops it. 18 months from now -- >> tv show. >> very similar to a very hip tv show from the '90s. >> when i was doing buybacks. >> when i was doing buybacks. ♪ tamra, izzy and emma... they respond to emails with phone-calls... and they don't "circle back" they're already there. they wear business sneakers and pad their keyboards with something that makes their clickety- clacking... clickety-clackier. but no one loves logistics as much as they do.

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all right. let's talk a little pair roment st paramount stocks going to be down ever so slightly. the news hit last night. becky quick bringing it to people. edward bronfman saying i'm not. opportunities for paramount nearly over eight months -- actually, i'm sorry. this is a statement from -- there it is. tonight, our bidding group

informed the special exiting -- privilege, very gentlemanly as he is, edward bronfman. it was an incredible deal for some, perhaps not for others. as you well know, jim, i have my significant doubts in terms of at least the ability to put together a group that could prove it was financeable in such a short amount of time. and that certainly was a concern of those advising the special committee. not to mention the special committee itself. we talked a lot aboutit yesterday, led by charles phillips. you can finance this? can you actually come to the finish line here with the dollar number that we think is superior to the existing deal? not to mention we have confidence you can actually complete. gets to the point it was never clear how much money edward bronfman himself was committing. i did talk to a couple investors after the show who were committing dollars to this. they were both quite

enthusiastic on the prospect of a transaction. and the streaming world, what would be left, having a larger flow, collapsing the government structure. both of these made sense based on their net worth. however, they also pointed to some of the other numbers attributed to some of the others in the investor group saying that makes no sense, the numbers were so far beyond the financial whe wherewithall with some of these people, in the first conversation that came up when i was not on set that day, jim, the question is he really put together a viable bet to compete against the six largest men in the world not to mention the liquidity to shareholders? >> what's confused me, and i remember very clearly what you said, you basically laid out the fact they didn't have the money

to win. >> yeah. >> but they somehow thought they did. now, how did that happen? how do you go and say you're going to put a private equity stake in. >> that's a good question. >> for the eagles for 7 billion. and someone else comes in and says 10 billion. and someone says my 7 million is better than your 10 million? >> the expectation is they would continue to raise the number. but in such a short amount of time, it was report there was a an attempt to increase the bid, well, there was, but in order to do that, you have to raise even more. the said financing were suspect, at least in terms of the numbers themselves. i do believe there was conjecture on whethmr. bronfman part that bane would be there. i would make the point that there are no private equity companies that showed here.

apollo was around this thing with sony. they never came back. never. bane chose not to participate. i pointed out the fact that kkr, the owner of sky dance did not put any equity in. a lot signed never showed in any way for partnership. sort of interesting. things got to an investment place, and they're like, what are we doing here? did you notice how quickly the linear cable network ecostructure is declining? >> i mean, this is the acceleration of the decline. i really think we'll see numbers that are so bad. have you ever anybody that pays a cable bill anymore? anybody? >> you do, i do. >> yeah, they're suckers. >> i'm going to move to mtv. >> my kids say, look, dad, i watched your ten-minute

broadcast. >> are they doing that? >> what else do we need? that's not the point, that's the gateway. that's not unlike what's going on with the gateway drug. >> said that, i did the other day just talk about our viewership, i got lots of positive response out there, saying they're still there. around the world. >> what do i know. deft is not a good deal. deft is wrong. >> cannot get around the fact the most pessimistic forecast about linear cable networks prove to be too optimistic. >> i happen to be a big believer, there's a lot of ways to get around. none of them seem honest to me. i'm going to pay my cable bill, but this is honest. >> all right. >> what, it doesn't matter if something is honest? >> you cut the cord and figure out other things. there's no entertainment available on regular cable anymore. it's all streaming, the only reason to watch is news and sports. that's it. >> okay. well, what do we do for a living? >> i don't know, figure it out.

come up with something like the buyback. all right. he's going to figure that out, also the mad dash. let's give you another look -- look at that face. we got a lot more "squawk on the street" for you straight ahead. o . futures don't sleep in the after hours, bro. dad, is mommy a “finance bro?” she switched careers to make money for your weddings. ooh! penny stocks are blowing up. sweetie, grab your piggy bank, we're going all in. let me ask you. for your wedding, do you want a gazebo and a river? uh, i don't... what's a gazebo? something that your mother always wanted and never got. or...you could give these different investment options a shot. the right money moves aren't as aggressive as you think. i'm keeping the vest. 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.

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six minutes before we get started with trading here at the new york stock exchange. let's go to "mad dash" jim, you want to talk about lulu. >> yeah, august 29th is lulu day. if it wasn't for the fact we have nvidia -- >> ooh, what happened to lulu? >> well, they had a botched launch of a particular kind of fabric that just didn't go well. david, we now have, everybody is ranging, 350 -- well, 270, cal, 423/375. what you have, david, we're seeing this happen quite a bit. the analysts were so excited here it's like -- you know, you can't go i'm going 540 to 270 because you'll look like a total dope. unless it's split. i will tell you, david, this is a little anomalous. we need an anomalous prediction.

>> please. >> they have cash, they can do a hefty buyback. >> okay. >> i don't think they're going to take is the city down, they're tired of this. they have done this before. they're saying, look, our inventories are lean and we're back. i think if they just say, hey, we're where we think we are. >> yeah. >> then the short squeeze starts. >> interesting, okay. so all the bad news in some ways -- >> that's my point. david, they coin it because they want to make a fancy term. david, this is de-risk. >> de-risk? >> de-risk. >> the drawdown has ruroccurred. >> you're the -- >> i know, i just love that stuff, the genesis of words on wall street. what was the drawdown. we had nothing to do with it. eng opinbell, 4 1/2 or so minutes away, don't go anywhere. we're right back.

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keeping an eye on any number of different names. not a lot of earnings, of course, we're waiting for nvidia itself after the bell tomorrow. a number of different notes, throws of interest. jim, i don't know if any have risen to the level. i want to talk lilly. >> let me tell you one to watch, okay? there's a piece out this morning about coca-cola. >> yes. >> and basically saying that coca-cola is the best, a morgan stanley piece. >> yeah, hot in beverages replacing pepsi. >> yeah. and we want to watch that, because if i'm right about this market that kind of thing really works. why does it work? because coke has had the momentum, it's a worldwide company. the dollar is very weak. it has what i would regard a franchise run by a person james winsy who is fabulous at his job. and we go, wait a second, if that goes up, we have to take

this market away from nvidia. >> talk about advantages versus fears driving their weighting. kind of interesting. including historic volume and other notables. >> they have four different things. [ opening bell ] . >> opening bell here. you can see, on that board, given where the futures are at. they're celebrating financial. >> very good. >> over at the nasdaq, ohio-based midfield temp for that company. celebration there. >> all right. >> can i just, for a second, where you and i very much disagree on something. >> sure. you know i'm a huge believer. and we got an update that

perhaps steel prices could be bottoming. i know, when i had him on, he is absolutely convinced that steel prices are bottoming. if you believe that the cycle is real, the rate cut cycle, all right. >> by the way, i don't have an opinion on that. yeah, i am much more focused on the u.s. steel transaction we know. and whether in fact they can, if given the opportunity yet again with the nippon deal for u.s. steel falls apart to purple the company. >> right. >> i think there's some -- obviously, a large shareholder of u.s. steel was on a number of weeks s ago. >> there were five bidders. >> yeah, but the deal is -- >> i'm saying nippon steel. if you listen to either president -- >> well, no, no, no, there's only one president at a time. >> the former president trump and current president biden. >> yes. >> they are, without a doubt, so opposed to this.

>> they both believe -- >> right. >> they both believe potentially it would result in jobs being lost. >> right. >> that seems to be key to their focus. pennsylvania, obviously, is a swing state, so that becomes important. >> that said -- >> jim, there's a lot more to come here, including what i said yesterday, and i don't think we need to spend much time on it, what nippon will do, to make clear, its investment chase for the mon valley plant in particular built in 1938 that needs significant updating, will they come in with the $1.4 billion in additional capital? or even more than that? and when will that be communicated? and will it be enough in some way to turn the union from its current partnership with cleveland cliff. >> you cannot -- that is a really rock solid relationship. >> and that's why you've got a

spread that's so significant to what nippon has agreed to sell. >> the reason i bring it up, there's very little to the two different camps. republicans and democrats do agree that nippon steel should not get this. but when we have national champions, you raise this, but did you see japan and 7-eleven and cusecard. and then embracing 7-eleven as a national champion and perhaps notal allow for sale there. you do wonder if this is going to play as sort of economic nationalism continues to rise. i think we'll see fewer and fewer cross-border actions? >> yeah, but we cannot underestimate the size of scale of 7-eleven. >> no. >> by the way, what do you think is the number one performing

7-eleven? >> the one in the hamptons. >> won in montauk. >> really? >> yeah, as eopposed to costco. costco a fabulous story about how they're selling more of martin's. and netflix. this is the one to watch versus coca-cola. if netflix goes up and we may be for a moment a resident in the selling of tech and tech-related. >> really, netflix? >> this is a good piece. >> you know what, i'm tired of waiting. let's do lilly. >> thank you. >> we have to do it here -- well, here, there's a quick, from evercore raising netflix's price target, largest financially that we've ever seen. >> just go buy it. i'm telling viewers just go buy it. >> and lilly, let's talk about

the change in the way they're going to be able to give people zepbound. and the idea whether it's a price cut or not. i've got research fromweighing you've got the same note. >> yeah, novo nordisk was down 3.5 when the use came out. by the way, lilly traded at 952 at 7:15. i think what's interesting, david, it's not necessarily clear -- >> -- that it's a price cut. >> thank you. >> you and i looking at this note, these guys are pretty well-known for research in this particular name. they say it's not a price cut at least at evercore. >> they say it's $600 price cut for regular lilly and the current one. >> because the dosage is different. vial form, 399 for a 2.5

milligram, 599 for 2 milligrams. those are the vial sizes as they stand today. you got to do your own syringe. >> autoinjector. versus a regular needle. people are scared of needles. some wags have used the term "gateway drug" to me. >> the conclusion of the very quick piece from evercorp., if anything is based on the new change, you can find evidence suggesting price may actually get better. >> but there's a backlog of injectors so lilly has not been able to meet demand. >> right. >> lilly castigates the companies they use the term "knockoff" counterfeiters, i've been upgraded when i called them knockoffs. they said, immediately, no, jim, they're not that. what i thought interesting, david, how long people were this morning because they didn't meet the time frame. they didn't know 2.5 -- 2.5

doesn't get you very much. >> right. it's half the dosage. half the dosage for half the price. basically, it's the same price. >> look, it's not crystal meth, for heaven's sake. what has happened, david, you might want to take the 2.5, see the results and say, listen, i want to the go up to the regular dose. that's why the stock is up, not down. and david, people don't know how to do simple math. >> is there demand for this drug? >> there is because of hypertension. >> and when do they get to an oral application? >> david ricks is one of the most understated people on earth. the fact this is a lifesaving drug. and it's not presented as a lifesaving drug. every insurance company would have to pay, congestive heart failure. >> oh, it goes on and on,

alcoholism. >> alcoholism, if you take two drinks, remember, alcohol tastes -- they'll tell you that alcohol tastes like -- if you've wake up and have alcohol in your cereal, that's what alcohol feels like. i think people have to watch this and not realize that this is really about the injector. and how difficult it was to get on the injector. and so let's go with the semaglutide -- you know, with the needle. david, people are scared of needles. >> they don't like self -- many people do it. >> but what about life, the travails of people with diabetes. and they have a glucose monitor. i believe if apple comes up with a glucose monitor watch, then it's game set, is you have to have a battery life. >> you mentioned apple, they're down. i'm looking at all of the tech

titans. >> it's happening again. it's happening again, david. >> we're not talking huge percentage declines, nonetheless, they're all down. nvidia as well. >> they're list lists. >> the mega techs, all down, the big seven. >> david, isn't it better if they're down, rather than coming in hot? >> i think so. >> you soften it a little bit. not unlike my father's h hot-lanta, they would soften the beat so you get shot at. >> you there go. >> there are fewer people you were with who got shot, my father would describe. he said it was so awful he could never go there. >> wow. >> so that's what you do, soften the beach. >> all right. i've been handed a very large document from hindenburg, the firm that puts out significant

research. >> where is that again? >> new jersey. >> lake hurst. >> right. thank you for that. >> no problem. >> this is having to deal with super micro. i've just been handed it. it's very small type. i haven't had an opportunity to review it, neither have you, jim. >> supermicro -- >> this is a firm that our viewers usually know is associated with shorting a stock, putting out significant research on said equity. and it has an impact, take a look, down 7-plus percent. and micro has not had an opportunity to respond. >> no, it's fair they have a chance. by the way, supermicro is a company that works very closely with nvidia. >> right. >> they're not partners, hpe, dell, supermicro, they're all helpers like if you wanna vidia.

by the way, you can't just order nvidia. you can dial 1 h-800 lab rat. >> they've reviewed, immigration experts, records, and they claim to have found glaring red flags, evidence of undisclosed party transactions, sanctions and expert control failures and customer issues. again -- >> suboptimal. >> we do not have any response. >> well, we want to give response but this is -- you have enough cash. they've been doing these equity offerings. and their growth is so great that they've had to do it like this. >> i just wonder at what point companies like this -- like what value are they at, ultimately, when demand slows and the hiype scalers who already make their own equipment that incorporates

really need it? >> dell stock went up to 170. unlimited demand. we heard blackwell which is their current iteration may not ship in time. so there's your example of what happens when demand slows, david. that's what it looks like. that's what you should be prepped for. hpe, same deal. and now, obviously, supermicro. supermicro is somewhat impenetrable. >> it's not as straightforward, we always talk about the chips. amazon is buying chips. and meta's buying chips and microsoft and dell and hp. if they're putting a service together, it's sort of a more mixed picture -- hyperscale, put it together, they have companies that do it for them, but they also use dell and hp. >> right. the big guys don't want to

handle it. one of the reasons i'm upset that people think it's all smoke in mirrors. if you look at meta and what meta's done with a.i., holy kow. if you google it, if you go to chatgpt, i like to go, chatgpt has what's the normal dose of it, and if you go to meta, they don't really know. >> what's the point you're making here? >> that -- the point is that -- that zuckerberg who apparently is claiming -- you know, doesn't want to be pressured on something to be pressured on. but his is still behind. unless you're doing a.i. -- >> his science is behind? >> yeah. unless you're doing a.i., like what's the contract? it's not as up to date as chatgpt. david, i find, it's got the right information, a little bit

sense of humor. >> we continue to see this movement again. we mentioned tech, big tech being down. the banks once again are benefitting. >> oh, my. >> interesting on the internet, on the side of buffett, we talked about that with bank of america yesterday. >> yeah, listening to part of the context, i've heard on the street, but i heard that very well. yesterday, it was said i think it's a buy. and they also have that bond portfolio that people don't really like. it's cured by lower rates. >> lower rates up the value there. >> yes, they do. david, the group i'm watching is solar. >> really? >> i regard solar -- this is something i practice. i literally tried to practice. and do not want to appear, because i'm not pro or anti, solar versus oil. we know one is not worried about climate change and the other favors solar. >> our favorite is renewable.

wind, solar, maybe even nuclear power. >> so, that's what you need if you really want to play the game, so to speak. like when reagan was elected she was going for a 600 navy, you could buy any of the shipyards. >> right. >> well, this is like that. there's no doubt you want to be until solar if you think that harris is going to win. because it went down a lot when it looks like trump was going to win. >> interesting. >> remember that period -- >> it's another play, correct. there's any number of them in there, fannie and freddie, another important one that doesn't get a lot of attention. under a trump administration it would probably be in cons conservatorship and that would help the stocks up. >> the drum sg stocks are up. that's odd. and by the way, j & j has been the horse here. >> do you want to talk about the

kroger ha kroger/albertson trial? >> i sure do. i think the government is the big case and wasn't hurt by things that albertson said yesterday. kind of made you feel like, huh, you don't want that deal to happen. >> surging grocery prices, david, in focus. >> both companies being up -- well, not necessarily, i'm not sure they're moving on the deal itself. the opening arguments from yesterday, as you might anticipate, that was both sides, saying their peace. for example, albertson's prices in their markets that kroger competed with were 12% higher than kroger's. so kroger is saying, hey, we are -- yeah. >> right from the very beginning, if you believe -- do you trust me, which i always do he said we're going to lower prices. >> yep.

>> and i believe he will. and if that's the case, we need to think, only about this multibillion dollar deal, the access, check on rising grocery prices and spurs improvements. that's the ftc chief council. it's a biden change. there is a belief in the investment community if the government can at least have their expert witness be believable, that they may be able to prove their case. >> i think it's just -- we'll talk about safeway, how about safeway. in the same way that jonathan tanner, the head of the -- assistant attorney general really felt very strongly that the airlines consolidated too much. >> yeah. >> i think that the argument you that can have a fair disposal of overlap is going to be seen as being facetious. and i think a judge will stay,

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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. shares of cava getting hit today after of course what was a very strong quarter but it appears -- >> down 113 at one point. >> saying hey, let's sell a little bit and that is pressuring the shares. i will point out, you were dead right on this one. >> yeah. i felt that mediterranean diet was going be to the next big

thing. >> i don't know what you knew but you were positive on it when it went public. >> i still am. >> great performer. >> buy the secondary. this is ridiculous. you love those. that's what you should be buying. great concept, it's what people like. good for you. as opposed to [ inaudible ] which i don't like. it's bad for you. >> are you sure it's bad for you. >> we have total -- there's just proof. >> you have something on the calendar. we're going to drink when we see each other. >> lynndie, we didn't talk about that. >> $2 million to support hydrogen. >> out of time. save it for your stop trading. >> why are we out of time? >> i'm in control here.

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what do you got tonight on the big program? >> a little observation. when will frost is here everybody hugs him. nobody hugs me. >> no. >> let's point that out. i'm making that a point. >> no hugging. >> wilf's kid looks so cute. >> very cute. >> i have clark hunt on today, who is the -- >> clark hunt? >> runs the kansas city chiefs, one of the top five owners in terms of wealth. worked at goldman. little overlap with me.

today is private equity day. we think after 4:00 they will vote. after that -- >> now we should point out it's -- >> the place of paramount -- >> it's a small group of permitted private equity buyers and, by the way, what they can buy is limited to a very small percentage of each team. >> if you think a team is going to go from 10 to $20 billion in worth it's not a bad buy. i'm going to talk private equity -- >> would like to participate and you do have --. >> not all owners are created equal. >> blackstone, couple other big ones. >> is there lake a permitted list? >> yes. there's a permitted list. >> i'm going to get that permitted list. >> i have it somewhere here. the owners are not of equivalent wealth, so it's entirely possible one of the owners wants to take more money than others. >> it would monetize a relatively small percentage of your team. you're not going to sell your whole team to private equity. >> a benchmark. after ceedee lamb's contract. >> he deserves it.

he's great. >> jerry does not need the money. ceedee is great. would you take him, top three, fantasy. >> i told you, i don't play fantasy. >> okay. >> i'm a purist. i just watch the game. >> fantasy is everything. daily fantasy the most important thing, the gateway. not unlike -- >> we have breaking economic data right after this break. don't go anywhere. at aes, our energy solutions have powered the world forward for more than 40 years. and as demand continues to scale, so do our solutions. introducing maximo - our new ai-enabled solar robot. max makes construction faster, safer and more cost effective than ever before.

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good tuesday morning. welcome to another hour of "squawk on the street." i'm david faber with leslie picker and will fred frost, live from post nine of the new york stock exchange. let's give you a quick look at the markets and treasuries you can see we are still down on all the major markets. i will note shares of nvidia are now in the green, and as for the

treasury, i guess we're not -- i don't know, leslie, i guess we don't have it. >> well -- >> we'll get it later. >> we have to keep people on their toes and keep them suspended. nvidia very much in focus, but we are 30 minutes into the trading session. here are other movers we're watching this hour. eli lilly releasing a new form of its blockbuster weight loss drug zepbound and announcing a massive price cut for it too. more on what's behind the move ahead of the show, currently up about 2%. and cava shares tumbling on news of fresh stock sales from key executives like ceo brent schulman who sold more than 210,000 shares for a price of more than $24 million. that said, shares are up nearly 40% in august alone, down nearly 8% at this hour. watch paramount shares, edgar broncman jr. withdrawing his bid, paying the way for skydance to move forward with its own deal for paramount. shares of super micro falling. short seller hindenburg research

saying it had a short position in the server maker. super micro down 3%. >> who will be able to tell us what the 10-year yield is doing, rick santelli and tell us about the consumer confidence data that's just crossed. rick. >> yes. well data hitting the wires now, but not all of it, the headline for consumer confidence from the conference board expected to be around 101 or slightly lower. comes in better at 103.3. that's the best, well, since february of this year. in the rearview mirror we see a subtle revision from 100.3 to 101.9. present situation, expectations, don't quite see them yet. my apologies. now let's go to manufacturing and service, shall we? from therichmond fed, if you look at manufacturing, minus 19. we were expecting minus 14. what's notable here is this is the weakest since may of 2020. it's the tenth consecutive

negative month in a row and we've now only had two positive numbers in the series in the last two years. if you look at the service side, really not much better. we now have 30 consecutive months that are negative in a row at minus 13. these are august reads, and, of course, we will be -- present situation and expectations when they hit the wires. wilfred, good to see you and back to you. >> great to see you, rick. thanks so much. let's discuss all of that data and where markets and bonds are trading at the moment. coming off the back of the dow coming in with a record closing high last night, even if david doesn't care about that. materials, financials and staples hitting new highs themselves recently. let's bring in the chief u.s. equity strategist at citi, scott crowner. great to see you. thanks for joining us. my first question with the moves we've seen over the last couple of months, talk us through your take on where valuations are for

the s&p 500 and where sentiment is more broadly towards equities. >> wilfred, great being on. okay. so let's touch on these. i think it's pretty important. in terms of the aggregate p/e for the s&p with this latest move, we're back above 23 times earnings, which historically would say don't expect much positive out of the s&p for forward 12 months. we tend to use another gauge that goes alongside this that we refer to as implied growth expectations, and when implied growth expectations get overly extended it puts a really big burden on companies to not just beat but exceed and raise guidance fundamentally. where we are right now is implied expectations have surged to a higher level than we were prior to the draw down at the middle part of july, so all told, all told, we're looking at the valuation set up a bit more balanced here. we still think fundamentals are in good shape.

sentiment, it has come off of our euphoric reading, so despite the move in the s&p, we think we're in an okay place as far as the sentiment backdrop goes. >> we were talking yesterday about the broadening out that's been taking place in the rebound of the last couple weeks. is that unreservedly a good thing as you look forward from here, or is there also an argument -- i mean you touched on the broad valuations already, but is there also an argument there's not much left that's kind of cheap? >> well, it's a really good question. let's just talk about a couple things here. second quarter earnings, the mag seven gave us a 7% growth. pretty spectacular. the other 493 gave us a 5% earnings growth. not bad, not like megacap growth, but importantly, that 5% growth was the first time in the last six quarters we've actually seen this inflection into positive growth. if you play it through to 2025,

you see a set upwhere there's a narrowing of the growth delta in consensus expectations between value versus growth in large cap, but also between small, mid cap and large cap from a size perspective. the s&p 500, whether it's the mag seven or the other 493, are trading in the top des soil of historic. whether you go down cap into the small mid cap world you're looking at valuations low relative to the large cap but relative to their history. if we get this earnings inflection, this consensus pointing to going into next year, we don't have a big argument with that, we think this opportunity for a continued broadening exists and it's necessary to get higher index levels. it can't all be megacap growth leadership. it needs to be supported ultimately by this broadening

discussion which david will tell you we've been talking about for several months now. >> scott, what do you see as the biggest risk to the rally right now? yardeni think it's politics not a recession. do you think it's recession in what you're seeing in the data or something else? >> kind of comes back to what i was getting back to earlier in this. if growth expectations are getting fairly extended in terms of what's being priced in, and that's telling you that this conviction around soft landing is in pretty good shape, but then you begin to see continued, what we've been saying is fraying around the edges, then you begin to -- set yourself up for some fundamental disappointment. now, i think the big issue or elephant in the room, if you will, is regarding labor and this has been much discussed. but our citi economists are of the view, you're seeing weakening in economic or labor conditions, the risk is if they begin to cascade lower, then you have a more onerous spending

backdrop unfolding. firstly, we're not seeing that in the fundamental data, but that's what we're certainly all eyes focused on from a risk manifestation angle. >> scott, taking it from the macro to the market, how important are these nvidia earnings that we're going to talk about endlessly between now and when they come out after the bell tomorrow? >> david, i think they're pretty important. go back to the middle part of the year. s&p up 15%. 5 percentage points of that gain was in nvidia alone. the rest of the mag seven another 5% and other 493, 5%. there's no question from a basic index weighting perspective, the importance of nvidia's very clear on this, but i think in terms of what i was getting at earlier the ai spending and ai productivity enhancing tailwind, i think we need to continue to see evidence of that playing out. so it won't be the earnings

result, per se, as much as it is what we're talking to in terms of a guidance going forward. >> scott, just finally, i was interested in your view on the u.s. dollar and whether you think it's going to continue on this weaker trend and how much that influences i guess not so much just your sector selection and the type of stocks you would want if it does continue to weaken, but whether it worries you at all if there's something bigger going on that we're about to see more of a recession materialize or more major debt problems actually take an effect on the u.s. bond market and u.s. economy? is it something you're watching closely or not really? >> i watch pretty closely but i would say that the dollar read is getting a little bit mixed here. generally speaking i'll take a weaker dollar as evidence of more confidence in global growth. and you can get to that point when we're looking at what's happening with central banks around the globe, perhaps end of hawkish scenarios and going into

something a bit more accommodative. that's great. but when he look at the deficit situation, which is, you know, a big focus we go into 2025, you'd begin to get concerned about monetary debasement and that's an issue that is much more difficult to really analyze and assess, but there the concern is that you begin to see that reflected in the dollar. now, all told, as long as the dollar is perceived as your reserved currency it's less of an issue. we have a balancing act in terms of how we're thinking about the dollar right now. generally speaking i will take a weaker dollar as a positive for risk assets. >> thanks so much. good to see you. >> you bet. >> do you have a favorite sector? do you have a favorite sector? >> to buy right now? >> just favorite sector you get excited to talk about. >> i think you know what the answer is. >> i think -- >> i think the two of you have a

similar sector. >> i think we also know what david's answer would be. >> you do. >> it's not even broadly media. it's just paramount. >> yes. that's mean. i'm not going to talk about it now. see, i'm done. i'm done. >> it's not the paramount sector anymore. >> no. it's the ever shrinking media sector. >> paramount wishes it was still central to the sector. >> sadly, that is a big issue. >> but one -- >> many of the old media companies are dealing with as you guys well know. technology i sometimes cover. i'm all over the place. >> you are. >> i used to even cover private equity and finance and a lot of the banks too. that was back in the early days of cnbc, before you guys were born. >> i would say you still cover it, and i would also say it's probably smart not to pick a favorite sector like you wouldn't pick a favorite child. if we did have to go there, we could talk about financials today because it is one of the best performing sectors today and one of the three s&p sectors that closed at record highs

yesterday alongside materials and consumer staples. about a quarter of the xlf is comprised of berkshire hathaway and jpmorgan which each are trading around and at fresh records yesterday as well as today. the best year to date performers in the sector include progressive, the insurer, up 52%, another insurer, arch capital group, is essentially tied with kkr, the alternative asset manager for second and third place. among the big banks, goldman and jpmorgan have seen the biggest gains this year and they each hit fresh record highs yesterday. today they are trading a little bit higher as well. financials have been boosted by the prospect of a soft landing, however lower rates would, of course, cut into the amounts that banks can charge for loan making, while deposit costs tend to take longer to move down. "the wall street journal" had an interesting piece about how bank of america could be poised to benefit even though berkshire hathaway has been selling stock. the article notes estimates of

bofa's net income growth higher than its peers and the firm has the bond portfolio under water with higher interest rates as reits decline and securities roll off that book. that could alleviate some pressure on bofa shares. the stock up about 18.5% this year, down slightly this morning. one to watch as we talk about part of that conversation we had with scott, is where there is potential value now. that kind of a run, i don't know if that would imply value, but just relative to peers with the various dynamics on rates kind of an interesting take. >> i mean, yesterday when jpm hit the record high, i was thinking, the number was 218, 219 today, that is crazy. we got down to 105 the october '22 lows. let's had a run. you can rationalize while the investment banks would be doing super well here. it doesn't have to be an early cycle sign. great volumes in trading, a bounce back in various issuance and m&a activity.

but keep in mind it doesn't have to mean it's early cycle and it could be a late cycle surge. the thing that's interesting when it's bank of america or citi and jpm is that they've actually been all rather tepid in their guidance of nii. so again, you kind of add it all together and you're like wow, we're really at pretty rich valuations when not all of the factors are necessary. the good news, we haven't had worrying provisions and that sort of thing. >> not even on the regional bank side. credit quality has held up well. it is interesting as you talk about the resurgence of capital markets activity, you're close to this as well, two think pieces in bloomberg and the journal saying like, the ipo market nowhere to be seen for the rest of the year. >> as we close out the year now and move quickly into the final quarter, it has been disappointing i think given what expectations were. better than last year but that is not saying much. >> off a low bar. >> that's not saying much in terms of volumes. >> the only other thing i would

say about nii and the outlook on the three to five-year view what happens to the yield curve once we start getting rate cuts? you have a long way to go with the 10-year at 3.7, before it's it starts to be steepening again. >> right. >> you need a lot of rate cuts or the long end to go up. i don't really see the argument for when the long end will go up for good reasons that wouldn't also hurt banks. again, this is a lot of questions when at record highs from here, not just nvidia that's stretched to the upside. right. as we head to break our road map for the rest of the hour. nvidia getting ready to report earnings tomorrow. how options traders are betting ahead of those results. >> plus, nfl owners meeting today to vote on whether to allow private equity to invest in teams. we have some new reporting on that coming up. >> just weeks ahead of its next i iphone release, apple making big moves in the c-suite. it replaces tim cook's long-time lieutenants. what that means for apple and growth plans. big show ahead. "squawk on the street" right back.

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apple is announcing its upcoming iphone event going to be september 9th. on that date it is expected to unveil new models for its phones, apple watches, the street looking for any updates on its very important ai plans. the company also shaking up its top ranks. a long-time cfo luca maetri is

stepping down january 1st of 2 2025 replaced by kevan parekh, apple's current vice president of financial planning and analysis. wedbush analyst dan ives joins us now, talk apple, nvidia if we have time. first give your take actually on the cfo change, any concern at all? >> not really. look, luca has been a huge part of the apple story the last decade. the way they do it in cupertino it's grooming for the kick kick sesser. i expect a seamless transition here. if you make a move like this do it at the beginning of the year, and it continues to be the way apple does it, strong bend no worries. >> our viewers no stranger to your view we are going to get an ai-driven super cycle. you think it will begin with the introduction of this phone on september 9th? >> yeah. all of our checks -- people will be like do you just believe it? everything we're seeing in asia

from a component perspective, this start is 80 to 84 million units. now, 90, 92 million. you start the trajectory this out, this will be a historical iphone upgrade cycle >> you do. >> that's because of your -- last time we talked to you you were in tokyo. >> yep. >> you told me you're going back very soon to asia. is that what this is based on? >> it's two things. the checks, everything we're seeing throughout asia, and it comes down to our analysis of the pent up upgrade cycle. we estimate about 300 million iphones have not upgraded in four plus years. you combine this, that's how you get what i call an ai-driven super cycle, that starts with iphone 16. i think this starts a historical period. we've talked about the innovation is in the rearview mirror. 25% of the world based on our

estimates will ultimately access ai through an iphone. >> have you said over the last couple upgrade cycles it will be game changing to this extent and been a little bit wrong, or have -- i'm trying to gauge on that, why this one will be different? >> i think the reason this is different -- and there have been nuances in the upgrade cycles -- part of how we're talking about apple on the cusp of a $4 trillion market cap, the upgrades have been successful and gained share. the difference with this is that you, from an ai perspective, there's going to be hundreds of apps that users will only be able to access with apple intelligence, essentially on iphone 16 or 15. you go back, if you're pre-iphone 15 you will not access apple intelligence and we continue to believe the consumer ai revolution goes through cupertino, just like the enterprise revolution is going through godfather of ai jensen and nvidia.

>> what are the apps you think are kind of a need for people, that they'll say oh, well, i know someone who has upgraded and they're able to do xyz, now i feel the need to do x, y, z? what is the stickiness of that product? >> it's all about developers. developers, that's the lifeblood of apple. right now with apple intelligence and ios 18 they will build hundreds of apps ai driven, generative ai, not just about openai how a typical user will access on their iphone, health, fitness, a lot of functions that we see consumers when we talk about ai, this is the device, the start of the consumer revolution, and many will say what about sam sung and others? >> yeah. >> listen, i'm going to start a conversation we will have to continue on your next time here. what about the idea ai moves to the actual device, right, i

don't need apps at all. i will talk to it and it will do whatever i need it to do and, therefore, apple becomes sort of superfluous. >> that's a great point. apple is with unstep ahead. they recognize that ultimately the heart and lung of their echo system are the apps. they will provide the building blocks. cook talked at wwdc. developers will provide the functionality and that's the success of apple and why apple continues to play chess and others play checkers. >> all right. dan i have a feeling we'll see you soon. thank you. >> thank you. >> who is playing -- >> then you have intel that's playing -- >> somewhere in between. >> intel playing checkers at the kids' table. >> you had to ask. >> i did. chess, too hard for me. >> is it? >> i sigh microsoft playing -- >> microsoft? >> microsoft is sophisticated. if you look and you kind of scale it, you got intel playing checkers at the kids' table,

apple up here and microsoft and you have godfather of ai. >> it was a good question and it will be in one of his headlines in his notes. >> headline, you don't know how to play chess. >> i do. but i got beaten by a 15-year-old live on sky in 32 seconds. he's the youngest ever, grand master, is that the phrase? >> still to come, eli lilly releasing a new form of its blockbuster weight loss drug and slashing its price. we'll discuss that coming up.

eli lilly, of course, one of the top garns in the s&p in august, the year and last two years and you can see this on news around its weight loss drug zepbound. angelica has details on what's going on. >> lilly will make vials of zepbound available through lilly direct for half the price. there are a few things to know about this. it's only for people whose insurance won't cover the drug, think people on medicare. the price is about $500 a month

out of pocket depending on the dose. you need a prescription and then you fill it directly with lilly. only two of the lowest strengths of the drug are included. the medicine will come in vials. that means you need to draw it up with a syringe and inject it with a needle. typically zepbound comes in a pen you would administer with a click of a button. the pen is a bottleneck to manufacturing the glp-1s. lilly telling us the main thing is to increase supply, reach people on medicare and other insurance providers that won't pay for obesity drugs and trying to steer people away from compounded glp-1s. the drugs all over the internet. there was initially some concern about lilly having the price on this drug, but remember, there's usually a big difference between the list price of a drug and the net price after the rebates, so the difference isn't as big as it seems and you're seeing lilly up this morning. >> i noted this note from

evercore isi when jim and i were on, they say they don't see a change in the price at all, especially given the dosage, $399, $549 for five. largely similar, they say, to the net prices as they stand today. is that what you're hearing? >> yeah. hard to know what the net price is because it's a secret. they don't know how much they're giving the pbms in terms of rebates, but fair to assume there is a big discount, they're going through the math trying to explain to people this is, you know, the actual discount that we can assume and then that's where they're coming up with it. i think that's pretty consistent from everything i've read this morning. >> all right. angelica, thank you. thank you. after the break nvidia getting ready to report earnings tomorrow. we'll take a closer look at options traders are preparing closer to the prt.in we'll tell you why when we are back in two. e and

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welcome back to "squawk on the street." i'm silvana henao with your cnbc news update. iran's supreme leader may have opened the door to negotiations with the u.s. over its nuclear program telling civilian leaders today there's, quote, no barrier to engaging with the enemy. those comments mirror what he said back in 2015 when iran was negotiating the first deal to curb the program in exchange for lifting economic sanctions. the ukrainian army said today it controls 500 square miles of russian territory in the kursk region and has taken nearly 600 russian prisoners. the claim has not been independently verified, but it comes after a second straight night of russian drone and missile attacks across ukraine. and travis and jason kelce reached a podcast deal that

could make them more than $100 million. the brothers signed a deal with amazon for exclusive rights to their popular podcast new heights. launched in 2022, the podcast features a mix of mostly nfl coverage along with pop culture interviews and well of course a mention or two of travis' girlfriend taylor swift. wilf, back to you. >> amazing stuff. big numbers. thanks so much. shares of super micro under pressure after hindenburg research disclosed a short position in the server maker. seema moody has all the details of that one for us. >> super micro stock tumbling after short seller hindenburg came out with a report alleging accounting flags in a any-month investigation they conducted. claims they found evidence of the company rehiring executives involved in 2018's micro scandal that led to its nasdaq

delisting. the semiconductor which counts nvidia as a customer specializes in ai servers and the stock has ridden the ai wave. it came under pressure this month following disappointeding quarterly report that it revealed weaker than expected margins. analysts chalking that up to higher expenses and dell. amd making the big acquisition. we reach out to super micro for comment. >> thank you. we look forward to that. turning to nvidia the street betting on big moves in the stock after the company reports results tomorrow. the options market pricing in a near 10% move in either direction. with bets skewed actually to the upside. joining us now is susquehanna cohead of derivative strategy. how would you say the positioning compares to prior quarters for nvidia? >> well, you know, it's one of the most actively traded earnings you're ever going to

see. there's a little bit of everything. if we were to pull out one trend, it would be selling putsputs on the downside. some people have missed the nvidia rally. they are willing to buy on a dip and one way to represent that is to sell puts on the downside. like i said, you see a little bit of everything and something that trades as much as nvidia. that would be one trend i could pull out leading into earnings. >> how do investors typically utilize options here? is this something where they hold exposure to the shares themselves and then use options to hedge, or is it -- is it fair to read this as a directional bet per se, or is it more of a kind of piece of an overall portfolio construction looking at nvidia? >> a piece of the overall construction. i would say that it's a great situation for options liquidity when you have something that

trades as actively as nvidia. you know, you have all buyers on the upside looking for continued momentum. you have those who are long looking to take advantage of the 9% move by overriding. they're offsetting to a degree. you have some hedging, a little bit overwhelmed on the downside. a little bit overwhelmed by those who are selling downside puts that are willing to buy dips. because nvidia is so actively traded, you can't use the options market not just to pull out that 9% implied move, but you can also pull out the probability of, you know, let's say an up 20% move versus the down 20% move. kind of what you mentioned is, the options market is pricing in higher chance of an up 20% move than a down 20% move. mostly in response to the trading that i mentioned. >> the stock is up, chris, 40% since the august 5th low. obviously, that's a striking move for most normal stocks. is it that striking for nvidia

when it's come off the back of such a quick surge? does it change how you look at things and change the action that we're seeing? >> yeah. you know, when we're able to have an opportunity where we think we can recommend, you know, volatility at a fair level in a name like nvidia that moves around a ton, it's a 9% implied move, but if you look back at the last couple earnings you have up 24% move, a little more than a year ago. so, you know, if we see sharp moves like these and the general trend since the august low was selling volatility in aggregate across everything, so, you know, when we think volatility is coming back more towards a fair level, we're biased to recommend going long, especially when you get, you know, the 24% move one out of every couple earnings. >> that's a good point. with nvidia at 6% of the s&p

500, even if you miss the rally or don't have exposure to nvidia this impacts the market in a very big way. thank you. appreciate your perspective. still ahead, nfl owners are meeting today and they're going to be voting on whether to allow private equity to invest in the nfl's teams. we will have new reporting you're going to want to hear, plus what it could mean for owners and the league. at a wn quk the street" returns. s with the power of ai... ...with a perfect name, a great logo, and a beautiful website. just start with a domain, a few clicks, and you're in business. make now the future at godaddy.com/airo sure, i'm a paid actor, and this is not a real company, but there is no way to fake how upwork can help your business. search talent all over the world with over 10,000 skills you may not have in house. more than 30% of the fortune 500 use upwork because this is how we work now.

we are just day away from the biggest earnings report of the week, so what happens if nvidia's quarterly report or forecast comes in weaker than expected? we're going to talk to one trader who's got protection strategy ideas. tune in to our market navigator segment, "power lunch," 2:00 p.m. eastern time. tailor-made for trader minds. ♪♪ go deeper with thinkorswim: our award-wining trading platforms ♪♪ unlock support from the schwab trade desk—

our team of passionate traders who live and breathe trading. ♪♪ and sharpen your skills with an immersive online education crafted just for traders. ♪♪ all so you can trade brilliantly. ♪♪ welcome back to "squawk on the street." nfl owners meeting today. they are expected to vote on a rule to allow private equity to invest in teams. if the rule change is approved,

it would make the nfl the last major american sports league to take this step. senior cnbc sports reporter michael is here going to help us sort of break down what it all means and i know you have new reporting as well, mike. >> thanks, david. yes, i do. what sources have confirmed wi me is that the nfl is going to approve private equity investing and what the plan involves is that there are going to be four separate private equity groups that will be allowed to invest in the nfl. in total they've committed $12 billion of capital. the nfl is going to allow each of these groups to invest up to 10% of the team, and invest into six different teams. what it basically comes down to, $500 million of investment per team. >> so, mike, are these deals already negotiated to a certain extent and are simply awaiting this green light for approval? >> it's all about the green light.

you have a lot of teams hungry for capital. they want the money to invest in infrastructure projects in their stadiums, stadiums are so important for nfl teams in terms of revenue because, unlike say the national tv deals that are shared equally among all of the teams in the league, revenue from things like luxury suites, other spality, non-nfl events you put into your stadium, you keep all of that revenue. but the p/e firms have been dying to invest in the nfl. it is the biggest and most profitable of all the north american sports league, and the nfl is the last north american league to allow investing by private equity firms. so there's money there lining up and waiting to go into the league. >> yeah. it's interesting of course all of us at this desk cover private equity or have at certain points. typically they don't like to own just 10% of a company. they prefer to own a lot more, if not control it. is it simply how attractive

these teams are? what do you hear is the longer term plan? are they hoping over time they will be allowed to creep up in terms of percentage ownership? >> yeah. i think over time you'll definitely see the percentage of private equity money that it's allowed to go into a team increase. 10% is fairly low. the other leagues allow up to 30%. i but remember with the nfl these investments, unlike some of the other leagues, you're not going to lose money in an nfl team. nfl teams are all highly profitable. largely because they get $357 million just in tv money for each team. that's going to go up next season even more. with that and the salary cap that limits player costs to about 49% of revenue, you're guaranteed to make money. p/e firms getting in now knowing i'm going to see the value of this team increase even further. >> maike, what has been the reason historically why it's

only 10% not 100%, but the reason why private equity haven't been allowed to buy, when, as you rightly point out, these franchises are incredibly profitable already? it's not like there's a fear that they'll be squeezed to be profitable, as opposed to be run purely in the interest of the fans? >> make no mistake, the hesitation hasn't been on the private equity side. it's been on the nfl side. the nfl hasn't needed the money. they're looking for some money now because the value of teams has risen so much. for instance, if a team sells for, say, $6 billion, $1.4 billion is your debt max, right. so that means you need like $4.6 billion of equity. so, you know, that's a lot of equity to raise, particularly if you're talking about small stakes from limited partners who will have no stake in how the team is run. the nfl has hesitated because the nfl is very conservative. they want to make sure that the financing of teams is very

secure. they don't want a situation where all of a sudden an investor has to pull their money out. they're very thorough on investigating where the money is coming from and how secure it is. >> yeah. they don't want competing interests with limited partners, versus the interests of the team. however, with 10% stake, as you point out, it would be more risk averse to some of those concerns. i read that there were some rules for the potential would-be buyers including no governance rights for the private equity firms, no preferred equity investments, and a requirement to hold stakes for a min mum of six years and they can invest in no more than six different clubs, the minority stakes. how does that speak to just the overall private equity culture shift and just this desire and clamoring to get into some exposure to nfl teams? >> well, basically says, they want in so bad that they're basically going to say, i'm in for the long term, i agree to

have absolutely no say in how the team is run, and i'm basically here as a passive investor. >> yeah. you know, there's, mike, obviously, some names we know well, whether carlisle or cbc or blackstone certainly, but smaller names, arctos, dynasty equity as well, just curious as to your thoughts about why they were included, the smaller p/e firms? >> they're firms that have experience in investing in sports leagues and sports teams. i'm sure the nfl looked at that. also, they looked at the source of funding from all these p/e firms. they want to make sure these commitments are for the long term. they don't have to worry about the health of these p/e firms. it's not just about the size of the p/e firm, but where the money is coming from and what possibly could these p/e firms do in terms of being able to help the nfl teams. in other words, are they there, do they have good connections?

are there any bad connections they have with other investors that they don't want the nfl to be involved with? >> yeah. mike before you go, you've been value teams for a very long time, so just a little -- what's the most valuable team in the nfl right now? >> you want a little tease into our upcoming nfl valuations. i'll tell you without question the dallas cowboys. well, well, well over $10 billion. i'll leave it at that. >> all right. mike, appreciate you taking time here. of course, we'll continue to get more of your reporting and our viewers can catch more of it as well. the sports section of our website, cnbc.com/sports where he will reveal cnbc's first official nfl valuations. you heard number one, but there's a lot of other ones to come. that will be next thursday. >> $10 billion. >> that's a pretty big number. >> jerry jones did all right. >> i was thinking it would be who are jim cramer is sitting down with later, the ceo of the chiefs. my hometown team. given their record. what do i know about sports

valuations. >> they've done pretty well, no doubt. two championships in a row doesn't hurt. >> i can't imagine they're hurting for value there. he is sitting down tonight on "mad money" with clark hunt, the ceo of the kansas city chiefs and join cnbc and board room's game plan conference on september scan that qr code or visit cnbcevents.com/gameplan to register. no. how am i going to do this? welcome to the mdy mid-cap cup, presented by state street global advisors. today's challenge is to play 9 holes without the middle of your bag. how does that sound? that sounds terrible. ♪♪ ♪♪ ♪♪ ♪♪

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welcome back to "squawk on the street." sgit a tough august for crypto and bitcoin, number of bitcoin millionaires skyrocketed. let's get to robert frank with the numbers. >> good morning, wilf. the number of crypto millionaires doubling to over 172,000. the rise of bitcoin etfs helping to add over 84,000 new crypto millionaires, according to a new report from henley and partners as well as new world wealth. there are 325 crypto centi millionaires, and 28 billionaires. the richest man in crypto is better known as cz, the founder

of binance. his net worth up more than $10.5 billion just this year after he pled guilty to money laundering last year and paid that $50 million fine. he is now worth over $33 billion. the total market cap of crypto right now estimated at about $3.2 trillion, actually below the $3 trillion estimated at that last peak in 2021. it's been a bit of a three-year-round trip for a lot of investors in crypto. blackrock's bitcoin etf passed the $20 billion mark back there may. with etfs from fidelity and franklin templeton also growing. for those that held on during this period, it has created a lot of added wealth. >> robert, kudos to them for holding on through this period and it's paid off. do we have any indication from these reports about the extent to which the people that have really made so much have diversified from the gains so

one maybe wrongly or rightly gets the feel that bitcoin tends to be quite focused on sticking in crypto, which has worked, as we said, this year? >> it's a really smart point. one thing that's interesting about this report is that it talks about the diversification among many crypto millionaires and billionaires talking about especially real estate. so, many of the people that made a lot of money in crypto, multimillionaires or billionaires are diversifying in real estate. the other interesting thing is crypto wealthy are notmads. where in the world is the best place for crypto rich to live? they have a new ranking system and it ranks singapore as the number one place in the world for the crypto rich. we have a lot of crypto wealth being created. that crypto wealth could also find new parts of the world to live and spend. it's also kind of altering the geography of wealth.

>> speaking of geography of wealth, thank you, robert frank, we want to talk about miami because a lawyer for ken griffin filing plans for citadel's new miami's headquarters. it will be the anchor tenants at 1201 brickell upon depletion in five years. reports suggest they will break ground in the third quarter of next year. among key attributes of the development will be public space at ground level, a luxury hotel with several food and beverage outlets, conference spaces and a ballroom for events. it will have a pool, fitness facility and panoramic views. "wall street journal" is reporting, if true there are discussions about building a dock of sorts to access the building by boat. although the plans don't mention those specific details. foster and partners is leading the design and field operations. they designed the high line. they moved to miami from chicago in 2022 and expect about 500

employees there by year end. guys? >> they've got the new department under jim esposito from goldman. >> they're expanding in new york and -- >> new york. >> also london. clearly just -- the largest, most profitable hedge fund. >> he knows real estate. >> including in london. he's got that most expensive purchase a few years back. >> tends to be the top purchaser. have a great time in the 11, guys. >> we will. >> don't say that so sarcastically. >> have fun storming the castle. our live market coverage continues.

[disconcerting stomach gurgle] not again. maybe i should get this looked at? [suggestive stomach gurgle] zocdoc? [talkative stomach gurgle] you're right, i bet they deal with this all the time. dr. finley really puts you at ease. let's do it! you've got more options than you know. book now. good tuesday morning. welcome to "money movers." i'm wilfred frost with leslie picker. coming up today, the great rate debate. former cleveland president loretta mester will join us in her first interview since