>> sometimes it is a value trap, goldman and disney, you can argue that their revenues are protected. netflix is under a lot more pressure and competition than it was before. some of it is a fundamental shift. netflix is going to realize they made their consumer base angry. there are like seven streaming services. netflix is the first in the past, but now they have more competition. >> that is what took it down. that is what you wonder area to victoria, we have to run. join us tomorrow. make sure you are here. >> i will be here. a special morning at the new york stock exchange, kramer and our family are bringing the opening bell, as mad money debuts its new set. we will celebrate with jim and give you a peek at the set later this hour. good monday morning, i am with the jim craver -- jim cramer.

goldman sachs starting us off. that is our roadmap. we will dig through those numbers as the stocks move in an opposite direction. someone is getting a pretty big boost. delta is ordering 100 planes from raytheon. the largest european listing in more than a decade as well, gf k spinning off of that $36 billion for healthcare is mrs. we have a couple new corporate names that are floating around. >> they spend a fortune to come up with these names. >> as we said, day at the new new york stock exchange. jim will ring the opening bell to celebrate mad money moving to the stock exchange. you said it is one of the best days that you have had here? >> i am not seeking

recognition, but i am seeking a better place to do the show. 17 years, it has been a great run. the fact is that the guests that i want are here. i want the closing l to be a great celebration of capitalism. i want to see you guys more than i do. i think that it will be -- what are you laughing at? >> he wants to see us more? >> i like you. >> i like you as well. >> no one out there believes it. >> i am excited. the first thing that you do when you see your picture is you are embarrassed. then you think, it is a big day. i am very excited about what the network has done for me. remember, it was greenlighted, that the technical term in the business. regina has been with me the entire run. my executive producer. this is where i started.

i started three addresses down the street from here. >> we will get to the banks in the markets it, but -- i just want to share with people, a good reflection of you is that you and so much of your team has stayed with you. that's a wonderful thing. congratulations to them as well. and to you, keeping people as long as you have, it's great. >> we are very horizontal. everybody does everything for everyone. i'm embarrassed when people bring me dessert, and i can't get up. it is too much work. it means a lot to me that these are the same people. it is home for me. i started with goldman sachs having a great quarter. 40 years later, here i am again. >> david solomon, he is going to call in tonight for the show, so that is good.

>> to me, he is capitalism. i am celebrating capitalism. i am not down on capitalists. i am not down on the man. i like the man. >> you are the man. >> goldman gives you chances to be optimistic. some say almost as good as city on friday. >> when i went through it, i was like this is exciting, citi is making money every day. do you remember when they would do the treasury and securities? it is working again. charlie sharp put together an amazing quarter. charlie sharp had to deal with a lot of regulatory issues. he is starting one by one to check the boxes.

i am astonished that goldman could make this money, but i would like to disagree with the market on one point. bank of america, they missed by two cents, but, the expenses are only up 5%. that is called leverage. that is good. >> we will keep an eye on those stocks, citi was great on friday. you can see what we are looking at for goldman. as for moynihan, the gentleman who runs bank of america, he has done so for quite a period of time. we look to him for commentary on the consumer, given that they have a broad credit card platform and many other areas where they see consumer spending. there was not much that was shared from the call, but the first two weeks of july they spent a ton in transactions. transactions rose 6%. that is on credit cards, i believe.

strong consumer resilience is what moynihan is talking about. he said that he sees shifts and what people are spending money on. we talk about a great deal of experience, a lot more on travel. obviously, a bit more on fuel due to the increase prices. >> the account openings are incredible. do you feel like they are taking share? digital is 48% of their banking. if they continue to reduce the expense rate at the branches, they have fewer branches but they are doing more. look, if it exciting? no. no. all bryan really wants to talk about is that the consumer is strong. when you hear that, you start thinking, does this make the fed's job harder. when the consumer is strong, you will have them chasing goods. at the same time i went back and forth with solomon, cancellations have jumped. ever

since the mortgage rate started to jump, it started exploding. a rocketship. people are walking away. >> it is not positive, but, on that point jim, the conversation that i will have with a lot of asset managers goes along that line. the world is accelerating very quickly, including home prices and cancellations. consumer sentiment is terrible. >> people are very sad. there is a gloom in this country. when i started mad money, i said that capitalism is the greatest force for social change. when we look at the bank of america and see what they are doing for minority businesses, we say it is a different world. let's not jump on these guys. they are really doing something. you know what happens?

people say that we are going in the wrong direction. we may be going in the wrong direction, and maybe people are not applying that much at retail, but the balance sheet for the consumer is amazing. at least it is not going off a cliff. >> for the market, i wonder whether or not we will continue to go off a cliff. it is very difficult as a time to try to assess things. those conversations typically mean the person on the other side of the phone is saying i am happy to be in the large cast addition, i may even choose to short the market. i still do not feel like we are there yet. we will continue to take the bar down in terms of earnings. it is lower, but not low enough. >> ford is selling at six. gm is selling at five. a downgrade today. >> it could go to five times, i don't know what to tell you.

>> there is great value in ford and gm. it will just not be realized tomorrow. everybody just wants tesla. all they care about is tesla. the furnace. the money burning furnace. when you speak to bankers, they say why do you spend so much time talking about twitter? well, we could just have the elon musk show. >> it would be an entertaining show. he runs one of the more important companies in the country, in many ways. >> auto market is a share, there's no doubt about that. >> space x? have you seen that stuff from the telescope? we gotta get out there. >> try to get up ford. they are sold through. why is that worth five times more? they are sold through, because them and will continue to weaken. that is where the debate is. >> that is where we are. that is where the debate is.

my seminal stock this year is micron. micron comes on, the stock goes down, and he says, micron will cut production. he got it down so much that it seemed like the end of the world. now it is up 10 strength weights since he got it. what you think of that? >> how low will you set the bar so that ultimately you can grow quickly? how quickly are we going to turn? how quick is the cycle? the fed was behind on raising, will they be behind on hitting the brakes? >> what mike olson had said, the cycles are happening so fast, that in his words it is good news because it means the conclusion of that their market will come quickly. it will be painful, but it will be quick. >> i read wilson's comments, and i said that he is really being consistent with how much money you are about to lose. i don't agree with that. i think that this is a very

important pivot moment. they move three quarters of a point. bank of america makes $1 billion doing nothing except for being a bank. i think that the idea that we would have to have a dramatic amount of pain is wrong, because so many stocks are down 40 or 50%. all of the junk has been wiped out. whether it is the specs, or whatever. do you know the term yuck? >> young and undercapitalized? something like that? >> that is similar to what we saw. >> they are all being obliterated. let's speed up the cycle. right? do you ever see the spack index that we have? >> did i see it?

i helped create the spac index. >> we have had so much disruption. tony will be on some show today, because that is what people do. he is worried about to the 2023 apple numbers. yeah, okay. he is very worried. be very worried about something else, because of apple cracks, that is not a good day. >> not a good day. >> should we be worried about energy? there are reports on -- the futures were higher. >> people are saying it could go to 200. i have been saying that it could go up, but, when you have the key, which is natural gas, that is going to hurt the consumer.

air conditioning. >> we are talking about europe. what will it mean for industrial europe in their ability to produce in the overall economy, and how deep of a recession they will have when they cannot get a hold of the necessary supplies and power. >> china being shut down,, will at what point do people say that united states is the greatest place on earth? it is impossible to invest in europe. the companies there, the stocks are going down. asia, they have two ipos. asia is stalled. we are doing great. when do we just say -- we are doing great, and everyone should stop being so gloomy. >> isn't that what the dollar is telling you? >> the dollar is saying go to italy and by brioni suits. >> we have all of the major banks, and the consumer is so liquid, the consumer is utterly

liquid. >> why do they feel so bad? >> they have a problem. okay? maybe get some zoloft in the morning. >> we are overmedicated in this country. we have to cut back on that, right dr. kramer? >> goldman sachs is up 11%. i really do feel that these stocks are going up, but people got their statement last week. their statement shows that if they have 100,000, they have 92,000. that makes them gloomy, david. that is what makes them gloomy. >> what you want me to do? be political? >> what about food prices being up dramatically you mark that makes everyone gloomy. >> when people go to a restaurant, and they by a new york strip, the strip is mostly gristle, and it is half of what it looked like and it is $49.

you want to stay at home, then you go to the supermarket and the price, the prices are up. it is negative. you should look at the grain has come down. stop looking at the oil companies. stop blaming the oil companies, and to look at what kind of profit margins the companies are making. i think that the growth -- honestly, david, listen to me. i think that there is so much price gouging, so much price collusion, so much signaling that it is time for the antitrust department to investigate. >> you sound like the biden administration. >> i think that there's a lot of price gouging. everything, across the board. price gouging and materials. there is price gouging not going out to dinner, you don't have to go out. i see signaling.

why do the airlines make so much money? how come they raise the prices so much? >> it is good for margin. >> up like a rocket, down like a feather. jim, you have to go, right? >> lisa is going to find out i have a show, it will ruin everything. a big surprise. >> are you going to make your way to the balcony? >> i'm going to get up. i love you guys. here are some m&ms. >> i love m&ms. >> there is a lot of our great team here that made this happen, about 140 people. i can't name everyone like it is the academy awards. be careful. >> don't trip. >> i won't trip, i just like doing a dance off. >> i'm going to walk off, that is who i am. seriously. >> jim, we will see you in a

few minutes. thank you. >> we will track his whereabouts as he makes his way to ring the opening bell. with the airlines, as you may have heard now, a 100 plane order from boeing. >> get up there, we will see you in a moment. rn, man. tu the thing off what if you were a global bank who wanted to supercharge your audit system?

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risk on for the morning, good morning bob. >> exciting day for all of us at cnbc. futures are up 30 points. a broad rally. take a look at to the movers at the open. goldman is up nicely on its earnings support, but even the broader market, like freeport is up. generally, commodities stocks have made a comeback, not very big in a popular sector in the past few weeks, but they are doing well. ships are doing generally better. there is a nice move to the upside. delta is on the upside. s&p 500 has been on the range, but bottoming in the middle of june. we are not that far from breaking out of the trading range. some have been nibbling on tech stocks it, last week, look at

the month. the s&p 500 is up 2% this month. it is mostly tech stocks. up 4%. kathy, the most speculative part of the tech sector, up over 10%. at the same time, the formerly hot sectors like energy and commodities are down, they trade to the upside. many people think of that as the first half of trade. the question is why are we getting this modest packing or buying of tech stocks right now? we are in a very strange situation, because of the strange cpi and the strong inflation data, the market has been pulling forward, tightening expectations in the past few weeks. as a result we have a strange situation where there are a lot of people that are expecting great cut in 2023. because of that you get people to front run the growth stocks, rallying in the fourth quarter, participating the rate cuts.

the problem is very simple. it is a long way to the fourth quarter, and a lot of people are anticipating earnings cuts in july and august, that will put additional pressure on the market, maybe a downside here. the markets right now, here is the good news. the selling pressure seems to have diminished. we have down days but the volume is not as intense as it was in june. okay, that is good news. on the other side of this thing you need an up target. the bad news is that i don't see a lot of buying enthusiasm. on friday we had a nice update, but the volume is not particularly strong. this tells you that there is selling exhausted, but not a lot of buying enthusiasm. a big day for the whole family, we used to visit tim kramer, wall street was the address. do you know what i marvel at?

the granularity that jen is about the market. i've known him for 25 years, and that was his forte. he knew a lot and he kept a lot in his head. he has not seem to have lost any of that. i really admire him for that. a big day for all of us. >> he has not lost a step in his insight and enthusiasm, which is unclear display. still to come, we will talk about the bounce and pickling, coin base getting a green arrow and the premarket. take a look at futures, as we get ready for the opening bell. kramer and management, in a moment f. u do the mobile so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style.

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in just a few moments, jim will ring the opening bell, to celebrate matt monies moved to the exchange floor. a new era begins tonight at 6 p.m. eastern time. we definitely hope that you will tune in. we will be right back. when you need help it's great to be in sync with customer service. a team of reps who can anticipate the next step genesys technology is changing the way customer service teams anticipate what customers need. because happy customers are music to our ears. genesys, we're behind every customer smile.

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mad money will broadcast here from the floor of the new york stock exchange, you are looking at kramer about to ring the bell along with our boss, mark kaufman, the chairman of cnbc. all of the guys , and women that made this incredibly difficult transition happened. >> i don't think i have seen that much management in the office in two years. we finally got them in. tomorrow, back to normal. it is good to see everyone on the platform. obviously, a number of them worked hard on putting this together. i don't think he will have control of the buttons during our show. that is a one time thing. the buttons will only play the

sounds when he has a reaction. >> that is something that only jim does. david, you made a great point, his mission to educate and entertain is something that he remains committed to. we are lucky to work with them >> there is the opening bell with jim cramer. congratulations jim, at the big board. you can see him celebrating the new location. the new york stock exchange. he is highlighting mantell international day. >> we spoke about thanks to some length. we started off with j.p. morgan last week, which was not particularly good. it generated a great deal of concern. as you well know.

we take a look at our colleagues there. it will be interesting having him down here all the time. >> he gets to come on our show, just because he's around. we are a little bit concerned. i will not lie. however, were talking about the banks. altman sex and bank of america. in fact, bank of america took a leg up. especially after the cfo had said that that they see their net interest income increased by at least $9 million. then, they expect to grow again at a faster pace on a sequential basis in the fourth quarter. there is no surprise that that would be the result of higher rates. they quantify a number. 1 million to 1 billion. that will send shares up a bit more in the premarket. you can see it is up 2.8%.

j.p. morgan, they had a lot of people concerned. however, that concern has not unjustified based on what we have seen since. >> another difference, they are not looking to pause the buyback, which was news earlier in the morning. then they reserve a couple hundred million for the work phone issue, which is now considered an industrywide headache. >> i became aware of it when i heard about the dismissal of a few people who violated policy. i will not mention names. i had not been aware of that, that serious offense. especially during covid-19 you can imagine it would be difficult . keeping your personal communication devices, and your work one completely segregated. the government has been cracking down, we saw with morgan stanley and other institutions as well.

>> we will keep an eye on that. for goldman, one thing, that was pointed out, 1.2 billion in fees at goldman is almost 2 times morgan stanley for two companies that like to be in these horse races, goldman is in the whole position this time. >> you are talking about a number that was 40 something% in terms of investment banking. not as much as you point out as the others, and that, it is. goldman still has eight franchises, in so many key areas. underwriting and the like as well. as we have talked about many times, when it comes to ipos you can just see it here by evidence of the bellringer's over the past six months. there have not been a lot of ipos. we may get a couple, but the window is closed. as for mna, my old area, things

are fairly quiet as well. there has been a pace of dealmaking that has surprised some. in terms of it being more robust , one area that we keep a close eye on, that is so important is political leverage. it is flush with cash, but, everything has become more expensive, which has the impact of bringing down to what you are reeling to pay, to maintain the same rate of return. it makes it more difficult to raise financing for any number of deals. certainly those ones that are above five alien. >> you mentioned that gs k spinoff, we have the names for those future public companies that ge will eventually use. then, they are unlikely to come together before earnings day. >> the journal, leaving the

reporting to them, so to speak on that. they continue to tell us that the deal is close. now they say that the deal is still close, but it is delayed in part as they wait for data from a study evaluating one of the treatments. also, the outcome of a royalties payment case that they are pursuing. when i said that there has been a pay 50 own making, this is an example of it we get to the finish line. the large transaction, perhaps some had not seen it coming. we have been told for over a month, that this is close. not as close as the journalist had first indicated. when it comes to a big deal, i want to talk about twitter. the shares are down ever so slightly. $37.60. tomorrow, we will get that hearing, on whether or not you are going to see an expedited trial. there is an expectation that mccormick, as i had said is

likely to be overseeing the trial, the real trial, not tomorrow's hearing. they are doing so, and, twitter and i had a good case here in terms of saying you continue to broadside our reputation. the insinuation that we are committing fraud is not helpful to our business. we need to resolve this. >> he said it was a major flabbergasting event. this, they are down 1.4 million that was reduced out of 190. that is why we are guessing? that is about the best thing that you have. >> that is back to the core contention here, one that the court is ultimately going to have to decide. the burden of proof is on musk and his team.

it is in far access to the 5% that they cite area does that represent an adverse effect on their business? it will be very tough to potentially prove that. i want to go back to something i said on thursday. everything is as solid as a rock. there are no expectations that financing is going anywhere. we will see how that ends up performing in terms of whether or not they syndicate the loans and they get funded, whether it is for morgan stanley or others. >> i want to quickly correct myself, from thursday, i said that that there was kohlberg in the geo pack case. my apologies for that quick misstatement. >> what musk is leading out, life meetings. throughout this frivolous stock, it makes it sound like twitter was saying we are not

going to let you. the opposite. twitter wanted to be sold. it was a hostile takeover. >> he does not do that >> what he is saying, the principal thing is that they revised down the agreement. this is 8k from april 28th, but the guy is so small that, you have to say are you kidding? are you kidding? musk? do you really think, is that the best you got? whether or not they are able to show proof that the concerns are valid. >> have you ever been in a

chinese store? you break it, you own it. bingo. he talks about how people get laid off. their numbers are not that good. >> we will see what he wrote his attorneys can go down to prove their case. >> again, tomorrow, the hearing is about whether or not this will be expedited. the trial could begin in mid september. we will find out. meanwhile, as far as tesla goes, some commentary, points bake, they said they might reiterate deliveries on 50. >> they cannot stay away, the most negative people are saying positive things about tesla. even though musk said it was a furnace, the two plants? no, they cannot resist. by the way, big coin? up 640 million ? that was advised. ill-advised? >> they still own it, so it

could go back up. >> meanwhile, they dumped for jim farley. i like farley. >> we know that you like parlay. >> i like the product, i like the fact that they don't make anything that makes money. they are closing plants without losing money. he is the first serious and bored ceo who has been very tough since when his grandfather worked on the first line. watch out. >> i hear you. for the record, tesla's market cap is 774 billion, and fords is 48 billion. >> jin, we covered goldman. boeing is close behind. >> i cannot believe it, that delta order in calhoun. that is -- wherever he was, farm bureau.

they can catch a breath. there is so much demand for engineers. someone downgraded american express a week ago. i think it will be a western omelette in their face. it is a remarkable moment. >> you're referring to the morgan stanley got. we will have earnings on friday. >> for goldman, they make a lot of money in biasing people. it is sticky. why do they have this? a sticky earnings street. on a podcast? >> why isn't david answering? >> at least he's not making phone calls oil i'm talking.

>> when i went to work there, that was the 1900s. it was a formative experience, jim. >> it is like i tell my wife, i went to the restaurant, cabbages. it was great. that was 52 years ago. you know what? this weekend, there is change. there is change in the air. >> lisa detweiler. she got the asiago ranch club without the ranch. the bacon eater is done. it's over. that's finished. >> lisa famously loves the bacon eater at wednesday's. -- wendy's. >> you have given her plenty of reasons to divorce. >>

>> where you buy one of these? >> wendy's. >> wendy's only? >> we have a double upgrade. >> they say that the technology is getting better. you and i will go to wall of garden. i will treat you to a salad like you have never had. bring your cargo pants. why? the bread, the rules. >> i will distract the waiter, you stuff the pockets. >> they have one of the best money marries i have ever had. >> what you like? horseradish? peppery? >> yes. no bacon. >> bacon in a bloodied mary.

>> the first streaming recession is the name of the report. >> i saw that. that was just last week, right? he was talking quite positively in terms of the overall addressable market. netflix is the big name. >> netflix is tomorrow. >> the netflix people are saying -- bring on the drama. it should be consistent with predictions. they can go higher on a consistent prediction. how about disney? >> let's come back to netflix. >> at the last quarter, they were so confused. >> i wonder how much we will hear about the platform. they have been doing a lot of things for improvement. >> if they need them, it's

because they are hoping that microsoft buys them. >> netflix is getting bought, most people believe that there is value there. but, come on. why have you not talk about the disney price increase? or espn? >> i did not see that. >> they are forcing you into the bundle. >> disney plus, espn, it is a bundle. i have to do the bundle because i think that we get all of these separately because we do not know what we are doing. >> i do like to read shakespeare. >> he likes to brush up on his big spear. -- shakespeare. >> remember, you can get into the investing club with jen. just sign in on cnbc.com. use the qr code on the screen. before we go to break, let's check bonds.

ll. resting morning for the doar a one week low. the euro, one week high. we are watching this closely. do not go anywhere

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welcome back we've made our way down to the floor and we had promised you a peek of the set. jim, i think i speak for everyone when i say this is beautiful. >> i'm very excited, obviously and the new york stock exchange has done a remarkable job. to see yourself at that level is a little daunting. we want to change the "closing bell." we want it to be a total celebration of capitalism. we obviously had that going at 9:30 i want to extend that and the new york stock exchange has been unbelievable, just amazing. >> we were saying, this set comes in and out because obviously it can't be here all day. it's beautiful and then there's a few of all your buttons these are not going to work during our show, are they, right? >> why don't you press them and see if that work there's a lot of negative buttons. jeez, that's my electroshock one. it's amazing how about a train wreck would be

good for you, house of pain, heart attack. >> those are all up my alley >> can i ask you whose idea this was originally, the sound board? it's iconic. >> it's when i had a radio show. when you have a radio show you're always trying to make things look life-like. i want to thank mark hoffman, who recognized even though this is a nutty thing, it can work and regina gillman who put us on the map saying this is a serious show and we're going to have serious guests i have ken langone and david so solomon. i'm very excited. >> is this choreographed do you have a free range >> yeah, like tyson chicken, i've got free range. to me, one of those moments in life that is very defining

because you've worked hard and you look at people like heather gaines who has been with us for so long. they're just incredible people. >> i see some exchange people on the floor. what's going to happen when you start throwing stuff >> brad ruben is going to catch them it's very interesting because i want people down here. so i don't have the arm i used to or the arm that jonathan has, but i can still hit people when i have to. i have some extension. >> not too bad >> remember, i threw out the opening pitch in 2016 at the bank and i had a strike. >> no kidding. >> i had a strike. >> i keep trying to let steve cohen let me do that for the mets. >> he has other pitchers that are pretty good. >> it must be nice looking out at all these people. it must be like a bar mitzvah. >> i didn't bring a gift. >> you didn't?

>> oh, my god, look who is here. my wife! >> lisa, wow, what a treat lisa detwiler, what do you make of all of this >> i didn't realize he was doing a show and i'm shocked. >> it's amazing i have a show. she now knows. that doesn't mean she's going to tune in. >> you don't watch >> she has things to do. she always tells me, do you think i have time to sit around and watch tv >> you know how often he mentions you every morning >> no, but i hear from other people that he has, particularly the stuff i don't want to know about. >> asiago and the baconator and things. >> we're driving, coming back from the beach and i see a sharp left i said, where are you going? she said, where do you think we're going? we're going to get sandwiches. that's what i love about her

she is still getting the sandwiches after all of these years. >> is that you >> yes, yes! >> this is fun. >> to see bob down here and know i'm going to see him all day, which is sensational. >> i don't know how he feels about it. >> i'm kidding >> jim, the real point is this is all great, it's shiny, it's new. but it's going to allow you to do what you love doing. >> look, i started down here and i know who is down here, and i know who wants to come to the "closing bell. look, not that i have bono here yet, yet, but i do think we'll have celebrities, but we'll also have ken langone he's here and i think that's an example of what we're going to do with the "closing bell. it's my day, so i want one more

shot >> you do it >> all right, there we go. thank you, everybody >> jim, congrats. >> thank you very much. >> we're so happy for you. lisa, great seeing you, too. >> thanks. >> don't mforget, "mad money" tonight 6:00 p.m. eastern time on the floor we're back after this. don't go away.

good monday morning. welcome to another hour of sidewalk on the -- "squawk on the street." a very busy week, not so much a macro. the banks are already continuing their run with goldman and b of a. got some home data out a few moments ago. hi, diana. >> hi, carl. builder sentiment in the single-family housing market dropped 12 points to 55 on the home builders index. this is the largest single month drop in the survey's 37-year

history, with one exception of april 2020, that was, of course, the first month of the pandemic lockdown anything above 50 is still considered positive, but sentiment has fallen 24 points since march, when mortgage rates really took off. sentiments stood at 80 in july of last year and hit a record high of 90 in november of 2020 is the pandemic induced a rash of home buying sales conditions dropped 12 points to 64, sales expectations fell 11 points to 50, and buyer traffic fell 11 points to 37 that last one solidly in negative territory the builder citing affordability, as well as production bottlenecks and said 13% of builders surveyed reported reducing prices in the last month to limit cancellations. regionally builder sentiment fell every but the most in the west it was strongest in the south. back to you.

>> thank you. we are 30 minutes into the trading sessions let's give you three movers we're keeping an eye on. we'll start with twitter elon musk on friday filed a motion asking delaware courts not to extradite the trial for, of course, the important case. it will be heard tomorrow in that court and then we should get a decision fairly soon after that bitcoin and related stocks such as coinbase and microstrategy all heading higher this morning. this is crypto, they're continuing to hit the buttons on jim's set. crypto continues higher and you can see that's having a positive impact on many company stocks, including microstrategy, which owns all that bitcoin. finally, let's end with the financials bank of america, goldman sachs, also charles schwab all on the move i don't know why credit suisse is there, maybe because cs and somebody thought that would be charles schwab symbol, but that's not the case.

leslie has been digging through the reports and knows all the ticker symbols she listens to the calls and joins us with more good morning >> good morning, david luckily, credit suisse is following the trend. goldman sachs ceo david solomon kicking things off on the conference call, it started about a half hour ago, saying there's, quote, no question the market environment has gotten more complicated he noted how unusual the inflationary period is because both the demand and supply side are being impacted by exogenous events >> my dialogue with ceos operating big global businesses, they tell me that they continue to see consistent inflation in supply chains. our economists say there are signs that inflation will move lower in the second half of the year the answer is uncertain, and we will all be watching it very closely. given all of this, we are seeing shifts in monetary policy and those shifts will continue to tighten economic conditions. i expect there's going to be more volatility and there's

going to be more uncertainty, and in light of the current environment, we will manage all our resources cautiously and dynamically. >> goldman's cfo said on the call they are re-examining forward spending and have made the decision to slow hiring velocity and reduce professional fees as a result of the environment. goldman shares the top performer among the big wall street banks today, currently up about 4% the company saw a significant beat on the top and bottom line in their 2q earnings, driven by big revenue gains and consumer and wealth management. bank of america also reporting today. ceo brian monahan really shrugging off some of the economic risks that others have raised, saying the firm's credit quality book continues to improve and they're in a little different place. bank of america's stock got a pop premarket after executives on the call provided guidance on net interest income for the remainder of the year.

the firm said the profitability generated from interest earned on loan making, minus that paid to depositors, would be about $1 billion higher in q2 and possibly grow at a faster pace in q4. it was a 22% jump from last year in the first quarter, so you can see why that bit of guidance got the markets pretty excited about the prospect there, guys >> yeah, leslie. and we did note that the stock had moved up on that initially, although it seems to have backed off a bit from the level when the cfo said that. not unexpected, though, with the rising rate environment that you're going to see the net interest income number improve >> that's right. and we did see it improve and we actually saw kind of a raised guidance last week as well from wells fargo, which helped provide some support under that stock after it reported earnings as well. so those banks that have this business mix that is exposed to

nii does seem to be -- they do seem to be fairing quite well relative to obviously investment banking, which does have a much more -- you know, much more risks associated with that in terms of ceo confidence, this ability to consummate deals amid all of the volatility. that area has been particularly challenged but goldman sachs at least, despite a big slump in activity, did manage to eek out some pretty good gains relative to what the street was expecting. >> it did. leslie, real quick on buybacks, and the stress tests, jpmorgan halted it but others haven't is there any pattern that we can talk about at all or anything in terms of the stress tests that's having an impact on some but not others >> no, it's a good question. you see the banks that have the biggest commercial exposure are the ones being a bit more conservative here. so jpmorgan halted their buybacks, citi halted their buybacks, that was news last

week today we see bank of america not so much. they did leave open the possibility and they actually said on their earnings call that they aren't against doing buybacks over the next few quarters so they didn't have that same kind of commentary they were much more just kind of tonality speaking, more senguin about the economic risks everyone else said the consumer is really strong right now but we're not sure what's ahead, so we're in this capital preservation mode. bank of america didn't give that same vibe, at least if you're kind of reading between the tea leaves of the executive comments on the call. analysts are pushing back on that. >> that's interesting. and as far as goldman's exposure to the consumer, leslie, i see the cfo said they don't see signs of meaningful credit deterioration. they did say they would be open to more partnerships in the consumer space in the years ahead. >> yeah, that's been a big growth area for them, actually

and if you look at the quarter, they were up -- i want to make sure i get the number right. they were 23% growth in their consumer business during the quarter. yes, 25% growth in their consumer and wealth management business during the quarter. that was helpful in offsetting some of the declines they saw in asset management, which was 79% lower, largely due to the volatility, largely due to the exposure in equities interestingly, and this was the first question on their call, it had to do with their private equity book and the fact that they were able to write up the values, despite the fact the broader markets had gone down. the ceo dennis coleman answering the question saying that, basically they're good stock pickers, good investors, and their specific investments happen to be growing top line revenue, when comparables were showing declining growth over the same period and that's why they were able to markup their books. >> that did get some attention today and we'll find out more tonight when david solomon joins

jim on "mad money. leslie, thank you. joining us today, jpmorgan's chair of global research and barclays head of global strategy joyce, let me begin with you it doesn't sound in general like you believe or your team believes the drawdown and some commodity prices means we're going to see relief from supply or inflation risks. >> i think the geopolitical risks are still there and all eyes are on thursday are we going to see the gas flows continue, when nord stream is set to reopen again so those risks aren't going away when we take a look at the inflation prints, they're still running very high. the fed needs to move 75 basis points, but even more importantly, they signal that they need to get rates above 3%. we're looking for the terminal rate to go to 3.5% by the end of the year the debate is inflation now

versus recession later, and i think all eyes are on the fed and also on what the geopolitical risks are from russia on gas. >> right and even today i know it's very short-term, but we don't have clarity as to how russia is going to play that and whether or not these letters are for real, whether it means that europe's time is now i see today already the iea says europe has got to start reducing consumption fast >> absolutely, you're right. i think the focus is on europe, both in terms of the gas story, but also keeping in mind other risk right now is italy and what impact it will have and the ecb is trying to come up, and it will go into effect when rates are going up and perhaps one of the policies being affected differently in different parts of europe. but because of political risk, it's hard to see them acting on

that front so, again, europe is a concern, and also the geopolitical front, china is a concern we have heard stories about sort of strikes from some of the mortgage owners refusing to pay. so far things are not systemic right now, but everybody is watching coming back to the u.s., i think we have had high inflation and the fed will now go 75, it seems likely but the way i would phrase what is being priced is really recession priced, so you saw commodity prices dropping, and so forth, but the risk of a stagflation is not so the presumption is that the fed will hike and then they'll start to cut that's what the market is pricing. but what's not being priced is the risk of the situation, and inflation continues to go up even though growth is slow. >> would you agree with that,

joyce, that we've kind of gotten warmer to the idea of a brief recession, but we're not prepared for something that combines it with persistent inflation? >> i think the market is prepared for -- at the very least, a real slowdown to below potential growth, below trend growth but a technical recession is being priced in. but i think recession risks are around 50/50, so it hasn't come down that much, even with some of the better prints we're seeing over the last couple of days but i think the recession risks don't go away. we go into 2023, we're seeing the squeeze on consumer purchasing power, wer looking at our data, we're seeing that 35% of households are actually now having some trouble paying bills. so i think these questions are going to linger with respect to what it means for margin compression, with respect to what it means for the consumer going forward. >> joyce, given you are chair of global research, just real

quickly, europe, in terms of particularly when it comes to energy and what it's going to mean as they head into this winter i know there's a lot that's unclear at this point, but what are your expectations and what could the impact be conceivably on their economic output >> we're skeptical the oil price ban can be that effective because i think that russia can redirect, and this is what we've seen, energy to asia but the question really is, will russia retaliate if there's an oil price cap. in this scenario you could see oil go to $180 to $190 that's not our baseline, we think oil north of $100 is more likely, but you can't rule out some of these risks. so all eyes are really on what will russia do in response to a potential oil price cap and what will the g7 really be willing to do as well because it does seem that secondary sanctions are something that are off the table for right now and that they're trying the oil price cap instead. there are many reasons to be

skeptical on whether this could work given the demand that we are seeing from asia and asia is actually one of the brighter spots right now compared to what we're looking at in the u.s. and europe. despite the problems in china's property sector, we're looking at a solid second half recovery for china in the second half of the year. >> would you go along with that? is 0.4% about as low as it's going to get in china? >> our economists have been forward looking and the forecast, growth forecast is 3.1% so they're much more bearish and so we think that, again, we do expect recovery in the second half and then going into next year it should be okay but the effect of what has happened so far is going to be much worse than what the consensus is pricing in. >> that's a nice little round-up of some differing opinions given how many outcomes are still

uncertain. thanks, guys we'll see you soon >> thank you as we go to break, take a look at the roadmap for the rest of the hour. oil is heading higher after the president's trip to saudi arabia we'll bring you some of the top picks on how to handle this volatility >> plus, inflation is weighing on the consumer. the ceo of p.f. chang's warning the economy is struggling and he will join us to explain that. >> and don't miss the ceo of marriott betting big on luxury, despite fears of a downturn on a day wheretravel is not doing too d.ba a big show still ahead don't go anywhere. ur in their l. for them it's the biggest milestone, the biggest accomplishment, the sale of a business, or an important event for their family. for them, it's the first and only time. we have seen this literally thousands of times, in thousands of iterations. ♪ ♪ i am vince lumia, head of field management at morgan stanley. whether that's retirement, paying for their children's college education, or their son or daughter getting married,

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travel demand continues to soar, despite what are higher prices for gas and, therefore, airfare as well. seema mody joins us now and she's got a special guest. >> thank you we're sitting down with the ceo of marriott, tony capuano. >> welcome to the new ritz-carlton nomad. >> 10,000 square feet of space for business travel, this is an exciting moment. does this reflective of where marriott sees the opportunity going forward, the luxury segment? >> well, certainly we're very focused on luxury. luxury represents about 10% of our global footprint in terms of rooms, but it generates about 25% of our rev related fees and it's a big payoff for our bond members. they are so loyal to us and one of the things they love to do is redeem points for stays in our luxury portfolio so we're growing across

segments, but luxury is critically important. >> the ritz has appealed to the high income foreign traveller. international arrivals to the u.s. still not quite back to 2019 levels. when do you think that changes >> hard to say obviously when you see what's going on with the strength of the dollar, that could have some impact but we continue to see slow, steady growth in inbound international travel. >> that's exciting luxury historically, when you look at past economic cycles, it's fared better, but now with the stock market underperforming, how does that change going forward >> the performance in the luxury portfolio through the first quarter was remarkable we saw average rates up about 30% and we continue to see really strong demand, particularly in leisure destinations so we expect to continue to see strong demand for luxury. >> part of that, of course, in the conversation is around higher prices. it's not just airfares, it's hotels as well, tony

here in new york $300 a night on average to check into a hotel, up 20% from 2019 levels. at first the conversation was, well, great, hotels are commanding pricing power, but now the question is whether this is sustainable what are your thoughts >> i think it's sustainable if we deliver on that service promise. obviously one of the big challenges that the entire travel and tourism sector faces is a labor challenge we continue to do everything in our power to make sure our hotels are staffed, our teams are trained. if we're going to continue to experience this strong pricing power, we've got to deliver on service. >> talk about service. it's been pretty chaotic when trying to travel right now delays, cancellations. you've been meeting with the airline ceos what's your take on what's happening right now and are they using the pilot shortage as an excuse >> better question for my friends that run the airlines, i do think there's a confluence of challenges i do think ground staff, tsa

staffing, air traffic control staffing, all of them have their own unique set of challenges, which are contributing to some of the delays and traveller frustration we've seen through the busy summer. >> do you think it gets better by the fall? >> i sure hope so. >> let's switch gears a little bit. obviously interest rates top of mind we have a fed policy meeting next week where chair jerome powell is expected to announce another rate increase. hotel construction was slowed down how does that fare going forward? >> the good news, as you and i have discussed in the past, most of our owners are long-term investors in the sector. they don't necessarily try to time construction starts or openings based on economic cycles because they intend to own these assets for many, many years, if not decades. obviously interest rate environment makes it that much more challenging to secure construction financing there seems to be plenty of debt for existing assets, but our focus is partnering with the owner community to try and

security debt financing for new construction. >> as interest rates rise, are there guardrails that you're putting into use as you're thinking about leverage? >> historically whether we're in an upcycle or more challenged cycle, we always have requirements in our agreements that put a cap on the level of leverage because we want to see our partners be successful. >> let's talk about china. that remains one of your biggest gro growth markets, if i'm not mistaken lockdowns starting to ease but the consumer is not traveling as much as you would traps think. what are you seeing on the ground >> china has been interesting. in the second quarter of last year during our earnings call we talked with great enthusiasm that china was back, each of the three demand segments had returned to pre-pandemic volumes. you look at what we said in the first quarter, it was actually the weakest of our major markets because of the lockdowns you've described. if there's any silver lining for us, it's the fact that we get to reprice and remarket our

inventory every day and so what we've seen, a city goes into lockdown, we see a pretty precipitous drop in demand as soon as the city starts to open up, we see it ramp up quite quickly. >> you mention today dollar and i'm curious because travel is considered one of the beneficiaries of stronger dollar is it having a sizable impact on bookings to europe >> perhaps, but before you saw the dollar strengthen so meaningfully, we already saw in the spring forward bookings into europe that exceeded even our most optimistic expectations the demand for europe, as you know, having just returned from italy, is enormous, and you have folks that, with elevated savings levels, that have been pining away to visit some of europe's great cities and we see that in our forward bookings. >> the talk about recession continues to gain momentum, especially ahead of the fed meeting next week. what's your thought on how this outlook changes for hospitality as the economy softens

>> well, especially for travel and tourism there's a big consumer sentiment piece, which we watch closely the consumer continues to be quite strong, the employment numbers continue to be quite strong so we're guardedly optimistic. but there are certain headwinds we're watching. >> biggest headwind right now, is it inflation, an economy that's softening what is it >> it's probably sentiment some days i worry we're going to talk ourselves into a recession. >> i hear you there. for now, travel remains strong and we appreciate your time as we get to learn more about this new hotel in the heart of new york city. >> thanks for having me. >> tony capuano, ceo of marriott back to you. >> thank you. when we come back, the arc showing some signs of life this morning. trying to put together a positive month we'll find out why after the st wh brk. ayitus

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let's get a quick check on some growth names. kathy woods, arc innovation atf following almost a 6% drop last week it's up double digits on the

month amid a broader rebound for some parts of tech it is still cut in half since the beginning of the year. top holdings, coin base, roku, tesla, all higher today. it's been a while since they've put a positive month together, as some of her, i guess, disinflationary thesis has a little more to work with now. >> perhaps a little bit more she has some momentum going her way. we'll see if it lasts. speaking of momentum, energy stocks are in their best financial position ever. that at least is what our next guest has to say we'll discuss that wh m tethbrk.ithi ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi.

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good morning welcome back to "squawk on the street." here is your update at this hour three people were killed and two injured at an indiana mall after a man with a rifle opened fire

in a food court last evening the 22-year-old who was legally carrying a firearm at the mall shot and killed the gunman, according to police. police are still investigating the shooter's motive and asking all witnesses to contact authorities. the trial against nicholas cruise, the admitted gunman in the 2018 school massacre in parkland, florida, kicks off today. the 12-person jury in fort lauderdale will deliberate on whether cruz should have capital imprisonment or life parole. >> authorities are warning of possible record temperatures in great britain, with the potential of the hottest day brittain has ever seen temperatures could reach over 100 degrees fahrenheit and the public is being urged to stay home until temperatures cool off. back to you guys >> it looks tough.

thanks, bertha let's get a check on where the major averages standing. dow is up 183, about 10 points away from 3900, which we got briefly this morning >> carl, we continue to sort of threaten that borderline between is this a bear market bounce even as we got the hottest cpi number of this period, or at least hotter than expected, we had a ratcheting up of fed expectations i think at minimum you could say the market is acting as if it's sold out the bull case is four potential peaks, peak inflation, oil, potentially peak yields and peak fed hawkishness. a lot has to go right for that to come through, but the market is acting as if people were defensively positioned coming into this. is better than feared earnings good enough, have we revalued

the market enough and reset expectations i don't think we have a critical mass of reports to say that yet but some of the stocks are acting that way. the question is, is time your friend if you're bullish the trend still remains down for now. it's going to be hard to disprove the idea that there's a recession waiting for us in the next few quarters. but even if you kind of skirt that scenario, you're still going to be left with this idea that the fed is going to need a lot of evidence to pivot to a more dovish stance so i think those are the overhangs, but the market acts a little better and you have a little more of the growth leadership that is trying to peek its head out. >> what is typical of a bear market rally when we look at them >> ultimately it never goes high enough to change the overall longer-term trend. i mean, that's kind of your basic bottom line. really it's also a matter of the fact that you need to see a lot of buying urgency in there where people finally say we're putting money to work. it's not that we're done selling

and we've de-risked enough, but this urgency to get back in. you haven't really seen that friday was a great day it was basically 90% of volume to the upside. we haven't strung a lot of those together people who look at a ten-day chunk of time are saying, are we having money flowing back in in a heavy way and it's not happening. >> we can take note of the price target cuts, but we don't mention when stifel says a rally is still in the cards. >> absolutely, and i think it says a lot that 4200 sounds like a stretch. it wasn't that long ago you were hoping 4200 was going to hold on the upside the market wasn't from a peak of 4800 down to almost 3600 4200 is halfway back it's not like we're talking about the highs again. >> as we plow our way through earnings season, when do we get to the critical mass we haven't heard from so many of

the technology companies where there's more concern in terms of the sustainability of earnings. >> i think that's right. so really at least into next week, probably, is when -- maybe let's say the next ten days, it's going to give you a better idea and it's not going to be one overarching story line it's going to be back and forth in terms of areas that already priced it in i find it interesting that the sn semiconductor index essentially hit its low when micron reported i think the big index names in the nasdaq, you still have, for as much as people have said amazon hasn't done anything in a long time. alphabet has been a relative outperformer they still have 90% buy ratings. there haven't been a give-up in those stocks and, by the way, apple has been doing a ton of the work on the upside in the last month that's not necessarily been across the board relief. >> apple has been a place for a lot of people to hide. down less than 15% for the year.

well better than the market. >> it's a very large -- it acts like a large bond investment in some scenarios and that's kind of how it's acted recently. >> mike, thanks. mike santoli let's check in on the energy markets. we've got wti crude bouncing back a bit you can see it above 100 bucks a barrel b helping out big oil names, following president biden's trip to saudi arabia, you can see many of the stocks let's bring in neil dingman for more on how to play these energy names. let's just start off with your thoughts about oil and natural gas. good morning >> good morning. >> you believe the prices are going to go higher why? >> i think the big issue is supply and lack thereof. whether it's domestic, international, you can go abroad and you can try to do a lot of things, but the bottom line is, there's very little incremental supply

cramer has talked about this he's been dead right about this. and whether it's gas, oil, domestic or international, very, very limited supply out there by anybody. the big question is going to be on the demand and you guys are the experts on the recession, if the recession -- how that plays out, if demand even stabilizes, and then you obviously last week had chinese imports that hit a low not seen since january of '18. so i do watch that closely for the energy side. but to me, if demand would just even become stable, i think we're set for much, much higher prices because of lack of supply. >> what does much, much higher mean >> i think we can take out the prior highs that we saw just over a month or a month and a half ago i think there's a really good chance you're talking $130, $140 i know there's am analysts saying, i think, $160 plus i don't think that's crazy, either i talked to my domestic

companies and whether we are at $140 or $100 today, they have absolutely no plans to change their activity because of their capital discipline so you're just not going to get the supply from anywhere. >> it does feel like those who had aggressive targets on brent, they said the one thing we didn't count on was so much of russian supply staying on the market i wonder how much of this really gets back to trying to read his poker face >> you're right about that i think depending on russian production, and it seems like occasionally the russian trade will get upended you see a quick spike and then something happens where, either from india or china, they come back and take a lot of those barrels, they'll buy a lot of those barrels, that's going to be the big question. if they continue to play ball with china and russia, if china and india keep playing ball, it will be tough to see a spike i'm calling for. i know there's a lot of people

trying to call for russian price caps and i don't see that happening as such. i think a lot of that is going to be hard for russia to ramp production. >> so your call includes russian production finding a home? >> i think very minimally, though the hard part was before all of this had occurred, to me the only spare capacity was with russia, and unfortunately we're not adding any more. so there's nowhere else where you have that supply so even if russia stays the path and doesn't produce any more, to me you're still going to push prices higher. >> you mentioned capital discipline, neil, and it's something we've talked a great deal about for quite some time here is there anything that's going to push these companies off, sort of what continues to be their focus on returning a lot of capital to shareholders >> the simple answer is no, they're very aware if they try to get a rig, hike spread, you

name it, they're going to have to pay through the nose. it would cause their operating margins to go way down and impact their stocks. so, again, i've caught up with all of my companies before second quarter earnings and this was probably the first time in several quarters not one of them suggested any sort of activity increase >> yeah, the investor base has been retrained to expect certain things i do wonder, there was something written about the president's trip to saudi and the idea that the benefits for them are immediate, but the benefits for the u.s. might take longer to play out is there any hope that we might get a headline in the next month or so that does talk about additional capacity or additional commitments, even if it's through the lens of, look, it's up to opec+, but we're on board if they are? >> i think you're right, temporary, could we get peaks and ebbs and flows for that, potentially. but i just don't believe saudi has the spare capacity, even going back a couple years ago

when prices went high, it was not until russia started boosting production that saudi came through and tried to do the same thing but they quickly backed down. they can talk a good game. i just don't think they have the spare capacity given a lot of our wells are showing more water, et cetera just the characteristics showing to me that they don't have the s spare capacity they're trying to demonstrate they have. >> neal, interesting discussion, and we'll be following it closely. appreciate your time thank you. >> thank you when we come back this morning, the ceo of restaurant chain p.f. chang's, over 300 restaurants across the globe we're going to talk about inflation, the impact it's ngn od prices and the consumer when we're back in a couple of minutes. ♪

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welcome back to "squawk on the street." i we've got consumer discretionary stocks that are among the top

gainers. within that group, we are seeing notable outperformance in many of the travel and leisure names. take, for example, the cruise lines. they're holding up especially well, as are the booking companies, especially you've got expedia and bookings holdings as well as we continue to see that strong demand for travel, because we have about a month and a half of heat until september, stocks like these could be worth keeping an eye on there's more ahead stay with us after this break. real-time exchange sector support is sponsored by sfopdr etfs

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all on the most reliable 5g network with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. parts of the market as investors continue to watch for signs of a possible recession joining us, pf chang's ceo, damola adamolekun joins us it's great to have you >> thanks for having me. >> we keep hearing from banks that the consumer is in great shape, but i don't think it's oversimplifying to say that you think the economy is struggling here. >> no, it certainly is there's certainly some issues we have to contend with, inflation being the primary one as you've mentioned, food inflation, labor throughout the p&l

the consumer is strong, but managing the cost side has required a lot of focus over the last 18 months. >> has the drawdown in a lot of agriculture -- we watch it from a chart standpoint here and the way ag has traded and commodities are traded has that made its way down to you? >> we see it, so new contracts we're signing we see price improvement over the last, call it, month and a half, since the beginning of june. but from a p&l perspective, we sign contracts on advance and companies will sign about a quarter in advance for it to hit the p&l will be around q4 and q1, so it will take time to work its way through to the p&l. >> wlhas your pricing strategy.

>> we're being nimble and we've been contending with it and been thoughtful about timing and duration of contracts, vendor management, so we're continuing to do that and we're taking advantage of the prices where we can, and really watching closely. we do think prices are going to continue to peak we saw in end of may, so just being thought you feel about those contracts and making sure we're able to take advantage of the declines going forward >> what is it you're seeing on the demand side? how would you characterize it, and check size as well give us a sense as your customer and what you expect heading into what may be a little bit more of a tumultuous economic period >> demand's been strong, really, since the beginning of 2021. we had that period where all restaurants were shut down in 2020 and then we really saw a lot of pent-up demand and that came to the fore during 2021 for us, demand has held strong there's been a bit of tradeoff between traffic and check as you

pointed out, part of that is strategic. we've shifted more towards a celebratory group dining sort of strategy so some of that is natural but some of it also is economic and people are making decisions about where to spend money you guys mentioned travel. they're still seeking experiences and spending less in some other areas so i expect some traffic decline relative to what we saw last year. we're making up a lot of that in terms of check size and some pricing, but on an overall basis, from a volumes and sales perspective, we're up mid teens from 2019 so still relatively strong the issue for us has been on the cost side, which is where we spend a lot of time trying to manage through >> so, talk about, for a moment, some of the countermeasures that you're able to take. digital integration, managing head count, opening smaller concepts what's on the menu there, and how much does it offset the downside pressures we've been talking about? >> you nailed it fortunately for us, we bought

this business three years ago and we came in with a thesis that was heavily focused on some of the things you just mentioned, particularly technology when people talk about technology investment, you really think about the consumer side first but there's a really important element on the back end, infrastructure technology, technology in our kitchens to make our chefs more efficient, to reduce waste, technology to help our hosts become more efficient. aarp technology throughout the company, so all of these investments we made really in 2019, 2020, have really been helpful now in dealing with pricing increases because we can be more efficient, and we can manage with fewer people and with less waste. so that's been critical. on the people side, the other area you really need to invest in is your people, right santa fe fe you need to make the equation working at pf chang's more appealing than anywhere else so you need to win on a relative basis and you can't fake that.

you have to invest in people, in benefits, in paid time off and different things, so we've been doing that we're continuing to do that. and that's helped us manage through what's been a difficult environment. >> fascinating you got a tough cocktail to manage, but maybe next time we talk a little commercial real estate we didn't quite get to that. clearly, another dynamic for the industry too damola, thank you. nice to see you. as we go to break, a quick reminder here not to miss the premier episode of "mad money" tonight at their new set, right here at the new york stock exchange all-star line-up begins at 6:00 p.m. eastern time don't miss it. leaving you lost. 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

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it's the first major global air show since the start of the pandemic, and of course, phil le lowe is there. he's got a special guest phil >> just a little warm, david here is blake, the ceo of boom super sonic and your overture super sonic, first flight by '26, first commercial flight by '29. still on schedule for that

>> absolutely. we've been making great progress, really proud of what we've done and more to come. >> your firm orders stand at 70 but i know you're talking with a number of companies. what is the next catalyst, if you will, for more firm orders is it going to be first flight >> i think the catalyst is actually in the past and we're going to have some more orders here to announce in the not too distant future but we're starting to hear from airlines, this is a product that i have to have my passengers want to arrive in half the time. if my competitors have supersonic and i don't, i'm left out to dry so we're going to start to see increasing momentum in the order book, especially over the next 12 to 18 months. >> you know the history in the airline industry if i got a choice between saving money on fuel and getting there faster, i'm going with saving money on fuel. is that -- are you noticing that battle >> well, i think that history there is a little myopic remember back at the history of propeller aircraft versus jet age. the first jet aircraft were fast

e, not more fuel efficient, but passengers preferred the flights and ultimately the cost savings from speed, being able to do flights in half the time, being able to get the work done with half the airplanes, made jets take over from props and we're going to see the same thing happen >> you've got a plant that you're building in north carolina, haven't broken ground, but your first overture is coming out in '24. as you are moving towards this, have you started to sit there and realize, now we're running into the issue of the supply chain and the challenges of manufacturing, not just designing an aircraft, but manufacturing as well? >> we're taking manufacturing really seriously, building the design for manufacturer build from day one and what you're doing to see here over the coming days and weeks, as we're starting to put together the industrial team that's going to build overture it's not just boom, but the companies that build components for the number one, number two airplane manufacturers on the planet are also going to be designing building for overture. it's going to be a whole team across the industry that comes together >> real quick.

flight time, seattle to tokyo, three and a half snourz >> four and a half hours, three and a half across the pond, new york to london >> thank you very much blake scholl, the ceo of boom supersonic joining us from the international air show, lots of talk not only about boom and supersonic flight but a lot of questions about the future of commercial aviation. back to you. >> yeah. so, interesting, phil. those times from here to england will get people's attention, phil lebeau, thank you taking a quick look at the markets, we've been focused on the banks. they continue to be the outperformers, goldman-sachs shares up about 3.5% you can see the broader markets also performing quite well with the nasdaq once again doing quite well as you might expect on days like this, we do see weakness in some of the shares that have typically been stronger on down days such as the pharmaceutical sector and merck is down along with pfizer j&j, glaxo smith

klein. as we've put it so far, one of the better performers and one of the better quarters for the financials this far along in the reporting season that will do it for us on "squawk on the street. tech check starts now. good monday morning, welcome to tech check, i'm carl with john and julia deirdre has the morning off. markets are rallying a bit, although we're off session highs. the nasdaq's trying to make it three up days in a row the stocks have not hit new lows in about a month have we found a bottom we'll talk about that. plus, could another poor earnings report make netflix a target for m&a we'll break down the streaming landscape and then with a vote on the $52 billion chips act coming this week, we'll talk to the ceo of global foundries and the ceo of lockheed martin, what that bill could mean for your chip stocks. >> stocks rallying to start the ek