usually employment number, in this case it was a gdp number. >> it was a big number >> it was so small it was negative >> a goldilocks number >> no stag and no flation. join us tomorrow, which is friday, i'm told "squawk on the street" is next good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer live at post 9 of the new york stock exchange. david faber has the morning off. it is official two quarters of negative gdp growth as the q2 print is down 0.9. futures bounced briefly on that news as the 2-year yield got crushed, lowest in almost two months on a big day for corporate results. that takes us to our roadmap this morning a second straight quarterly decline in gdp we'll get reaction from the

white house later this hour. meta shares moving lower after posting that first-ever revenue drop then there's jetblue agreeing to buy spirit airlines in a nearly $4 billion deal, creating the fifth largest u.s. airline yesterday the fed chair addressed concerns >> i do not think the u.s. is currently in a recession and the reason is there are too many areas of the economy that are performing, you know, too well and of course i would point to the labor market, in particular. as i mentioned, it's true that growth is slowing, and for reasons that we understand, really the growth was extraordinarily high last year, 5.5% we would have expected growth to slow there's also more slowing going on now look at the labor market, you have payroll jobs averaging 450,000 per month.

that's a remarkably strong level for this state of affairs. >> jim, you gist said the actual label is a political football at the moment >> i don't want to go to stagflation, whatever. i mean, these are theories i did a theory like that in 1988 i was tell ing someone, stagflation looks really bad picked up the phone, she bought everything she could buy went on margin you represent the most conventional of wisdom it was an unbelievable call. first of all, i think fed chairman powell conducted himself very well. he'll be criticized again. this is an inventory glut recession. there's gluts on almost -- a glut in housing, clearly a glut in things that are in retail, best buy and confirmed with walmart. but we can't find more workers, so at the same time we need companies to -- i don't mean to sound -- to lay off people

and that is not happening. the first time i've seen anything like that was in stanley black & decker, which was a total disaster of a quarter. we don't have enough labor, but we unfortunately have inventory gluts across the board, which is going to make it so it's very hard to raise price and therefore i think jay powell can come back september, raise smaller. >> no longer behind the curve. >> jeffrey has been very good. >> now, those who wanted 100 basis points, those who wanted a hike intermeeting, are they now looking back and thinking that would have been a mistake? >> well, they have to -- they were doing suboptimal thinking and they've been ill-advised i think it's time that it's okay to be able to say you should be more data dependent. again, the one thing i don't want to do is say things that would elect the democrats over the republicans in the house i think there's a lot of

subcurrents. the people who like the republicans are saying it's all bad. the people who like the democrats are saying it's good you have to get away from that because it doesn't make our viewers money. i don't want to be jim cramer in september of 1988 telling karen cramer don't you understand it's a recession, it's stagflation. and only for her to pick up the phone and buy everything because i was not a stock person i became an economist. and i don't want to become an economist. what i want to do is say what will happen with stocks. and this is -- we were up huge yesterday. we should be down today. the last two times the fed raised we were down. with this economy, this stock market is saying you know what, it's not as bad as we thought. i think one of the reasons is it's not as bad as we thought because we wanted the fed to be able to say, listen, we're in charge again you think we've lost our touch we're in charge. i think that kind of stability in a democracy is good news. >> right you think it's meaningful that

we're not giving back a lot of the best two days for the nasdaq >> the numbers last night were all subpar >> we'll go through the weak guidance best buy, qualcomm >> best buy, the inventory glut, they may have too much stanley and black & decker, that's inventory aisle by aisle in home depot, they have an inventory glut. sherwin-williams i'm looking at what's bought by consumers. tvs, inventory glut. everybody made too much of everything shopify hired too many people. amazon, you're going to see a big slimdown by jassy. facebook, metaverse, hired too many people. alphabet is slowing hiring this makes a lot of sense. >> you think it's because employment lags? continuing claims this morning were down. >> well, i think that what you'll get is initially they're still hiring slowly, and then

they will be just laying off i look at meta, facebook, we don't care -- obviously we want revenue growth and we don't care what it costs. we don't want down revenue growth and try to make the number through savings but that said, they have to right the ship there that's where we're going to see the big layoffs. now, i think that mark zuckerberg actually is building -- he's got a big position for reels and reels doesn't make as much money but i do point out that when you get the end demand for a lot of things that have been really great not be that great, you're just not used to seeing it in silicon valley they're the headquarters for recession, not the banks brian, did he come on the show to be able to say that the consumer is strapped and consumer is in debt?

no consumer very ready for recession. that's not supposed to happen. we're all very confused because the individual is liquid someone the other day was saying debt rates are high. brian moynihan know kwhoos the ratio is i come back and say, look, there are a lot of stocks that have to go up because they're betting -- they had bet that the economy is going to accelerate. and they have too much of everything, too many people, too many products. they double ordered in some cases. >> right >> and we have to go through that so if you owned best buy, you're going to -- today is your day to be whacked my trust owned walmart that was stupid. i was banking on walmart to have the art official intelligence to not do what they did i didn't say they were stupid. i said i was stupid for listening to them. >> to your general point, inventory gluts, advertising getting hit by recessionary fears -- >> exactly right >> -- and yet as jim points out a household balance sheet that remains robust, at least

according to moynihan. here's what he said last night >> people are spending on vacations. european troonksansactions are through the roof theme parks. home improvement, a little improvement. the comparison to 2019 is critical we feel good about the american consumer >> mastercard this morning, 256 crushes 237. >> you can say wait a second, the ceo is a dreamer, but the numbers are extraordinary there. and i have to tell you, i think as much as i like al kelly, he's terrific, the numbers at mastercard were unbelievable cross border numbers again, mastercard, people traveling. >> right >> alphabet, people traveling, advertisement, travel and leisure. what brian said is obvious that the consumer is spending money on services and is not spending money on goods if you have a lot of goods,

well, good luck. >> although we'll talk about etsy maybe later this morning. >> etsy did -- remember, they had a couple bad quarters. >> transaction fees. >> they ate -- they raised and the consumer initially balked, but now the consumer likes >> right meantime, as jim said, meta really quick missing on the top and bottom line, issuing the weak forecast, second consecutive decline in year-over-year sales zuckerberg, who has been cautionary for months now, on the call last night. >> trends on facebook have generally been stronger than we anticipated, and strong reels growth is continuing to drive engagement across facebook and instagram. that said, we seem to have entered an economic downturn that will have a broad impact on the digital advertising business it's always hard to predict how deep or how long these cycles will be, but i'd say that the situation seems worse than it did a quarter ago. >> although, jim, they did eke

out a surprise gain in daus. >> they did. it was a big guide down, looking for $30 billion, they came down to $28.5 billion i like the reels billion-dollar run rate, it is growing faster and it has more progress than stories did at this time but i've got a great group of guys i have people working in the trust and people on the investing club and people on "mad money," and i started this morning saying, look, i can find a silver lining. and, no. there was a moment where sheryl sandberg, who's departing, said, okay, look, before you think that things aren't good, the wild alaskan company, sustainable seafood delivery, had a 36% lift using reels okay well, so did barson and miguel this is not what we're looking for. but zuckerberg is probably self-effacing. i said to my wife, lisa, last

night, mark is self-abasing. she said please stop with the mark i think what happened is we're not used to someone saying business is weak, we're an advertising company, but the multiple was certainly indicating it's not a growth company. i found the call enjoyably frank. >> enjoyably >> frank frank. >> he's gotten more candid >> he has. it's delightful to hear an executive say we're an advertising company, advertisement is in a downturn, period, end of story i thought it was refreshing, candid >> we'll get to earnings today comcast will open lower. we'll talk about servicenow and ceo bill mcdermott breaking down his company's latest earnings. we'll get to some raised guidance out of pfizer, merck, hershey, and look forward to apple, amazon, roku, intel tonight. more "squawk on the street" in a minute

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no one's going to outrun the currency right now and probably when you think about energy and the dislocation caused by the war in europe and this reprioritization i'm talking about, you're going to see longer cycles in europe. we saw that. but this doesn't fundamentally change the narrative that tech is the only way to cut through

the crosswinds and ultimately get to the other side. >> that was servicenow ceo bill mcdermott talking on july 11th with me discussing macro, the strong power, and the company seeing some elongation in some of the deals closing still, the stock is lower in premarket trading, so i think we can get to the bottom of this quickly. joining us is now is servicenow ceo bill mcdermott bill, i'm going to posit something. had these nay-v saying analysts watch what you said july 11th, you might even think things were better than expected and i was flummoxed by the fact they didn't watch "mad money" and get the straight story and are paid a fortune to do let's say suboptimal work. >> i think what's good about it, jim, is when we talk, people listen >> they sure didn't, bill. i have to tell you, i'm looking at jeffries saying deal cycles

hurt results i've got another saying cost winds blowing. i've got steeples saying crosswinds still blowing i have some really good weather people here and they're terrific, maybe they should go into that business because they're exceptional, but did you not say -- i want to get this straight -- that row yao did not do a dramatic reset, you did not lower numbers, you did what you said you were going to do at the beginning of the year, you promised and delivered maybe i heard wrong. you tempered things on july 11th but ill, can i tell you, did you guide down, reset, say things aren't as good >> what i said is digital transformation and the winds, the secular winds behind digital transformation are much stronger, much stronger than the macro headwinds that are blowing in the global economy. so that's why we beat on the top and the bottom line. that's why we reaffirmed our

margin guidance for the full year in spite of the tough fx environment that we're in. and i basically said, given the macro, we will deliver the forecast that we put out to the capital markets in january of 2022 and that is exactly what we intend to do servicenow is an absolute winner our customers need us now more than ever. and our platform is resonating all over the world companies have to drive productivity they have to grow. and they have to differentiate so they can win against their competition, and there's no platform for the enterprise that gets it done better than servicenow, jim. >> okay. so let's go to jeffries, which said there's a reset, and it said in the conference call you lowered guidance you're now looking for 28% before you were looking for

28.5%, so therefore it's a very serious problematic situation. what do you think of that? >> yeah. what's interesting, as you know, we had unbelievable 2021, 31% growth, 31% growth in the first quarter, and as we announced earnings in april, we raised a little and given the macro now, we said listen, let's just go back to what we did in january, given the macro that developed since june, we should probably just go with the original forecast, which is a half a point difference in the rpo, which is the bookings of the company. if that's a federal case, you know, then what can i tell you >> hey, bill, you know, jim and i were just talking about the prospect of further layoffs, major layoffs, especially in europe i wonder, when you look at your business, is there some kind of inverse correlation between bookings or deal flow and head count? when companies try to do more

with less, do they turn to software in that case? >> absolutely. i mean, the greatest deflationary force in the world is software. and the reason for that is companies today are talking about hiring less, not hiring at all, and some are actually even laying off people. the work doesn't go away so you have to automate. all companies have to show ambition and have to grow. if they don't grow, they die so that's another reason why you'll need software to rethink business model innovation and how you're going to grow your business and then finally, every industry is saying, hey, how do i differentiate against my toughest competitor? if you look at the auto industry as an example, you know, how do i configure an automobile on the internet, get the right color, configuration, price, and then ship it on demand after someone says order now and make sure you give the customer a great experience so, how are you going to do that without software so, what'shappening is the great reprioritization is taking

place where enterprises are saying if things are going to be tighter in the macro, we really have to think about the platforms that matter. and in this great reprioritization you'll see people assemble their long-term partners, and in that reprioritization they're going to say i'm not going to do things the way i've always done them i need to free up capital for the things i have to do to win and in there you'll see some length and cycles. for example, our deal volume at deals greater than $10 million has gone up 50% year over year so even as you wait a little longer to get it, you actually get bigger deals and more sustainable deals, and that's why we have the highest renewal rate in the enterprise software industry at 99-plus percent and the best margins, too, because we run on growth and profitability. by the way, who else grew at 29.5% in the first quarter and the second quarter of this year?

>> hard to find them bill, i want to thank you. i prefer people to look at key points morgan stanley talks about a long-term buying opportunity, which is what i think we have here if you're thinking about the equivalent of a may fly, you probably would sell. but i think that may flies make really bad investors bill, good to have you on. >> jim, thank you. i just got to tell you one thing. i said at the capital markets day in las vegas we'd be an $11 billion-plus company by 2024 and i said we'd be a $16 billion-plus company by 2026 i resolutely reaffirmed that yesterday, and i do that today in front of the world. servicenow is going to be the defining enterprise software company of the 21st century, and we're on a roll. >> once again, if they watched the july 11th "mad money," they should have taken their numbers a shade down and realized that

bill mcdermott had a very good number he is the ceo of servicenow. thanks so much, bill always great for you to come up. still to come this morning, we'll get some white house reaction to this morning's gdp number brian deese will join us shortly after the bell take a look at the premarket and keep your eye on yields today. 10-year 2.66 will take you back to april this morning. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without

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futures trying to climb a little bit into the green here of course we did get that second quarter of negative gdp growth the recession debate will continue, although eyes are going to start to turn to the jobs number a week from tomorrow

as we have claims back to 256k cramer's "mad dash" coming up and the opening bell in five minutes.

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let's get cramer's "mad dash" ahead of the opening bell. >> the clapping will not be for this call you'll hear momentarily. sometimes analysts get things right and sometimes they get things right and they're also hi l hilarious as was the case with ken goldman on beyond meat mcplant seems mcdone in the u.s. for now. it looks like the trial did not go well with mcdonald's. it looks like that it's not going to be continued. and i think the reason why is interesting. not surprisingly, the reason sometimes being cited is the product did not sell well. >> jim, we went back and forth on this back when easterbrook was at mcdonald's. >> yes >> we could never get clarity on committed they were to the product. >> nor could easterbrook >> right.

>> they were never every time i tried to get them excited about it, they were, like, yeah remember they did a trial where neil young is from, west ontario, blue, blue window, i got to tell you, this is -- if you own beyond meat, and it has gone up, this is a stunning departure from the narrative not good. >> not only does it add complexity to the kitchen, which mcdonald's hates -- >> yes >> -- but we're now in an environment, jim, where the customers are trading down >> you don't go into that -- you know, the lane to mcdonald's and say listen, i want a couple beyond meat burgers, because then much more expensive than just getting what my wife would get, which is the, you know, the double -- you know what, she would get a having meal. >> you think the china opening means anything for -- >> people aren't really going out in china that's a very good company

but we still -- i mean, everybody still cites china as being one of the great negatives in the world right now and no one's talking necessarily that the president xi is going to -- [ inaudible ]. [ bell ] >> the opening bell. at the big board, bio pharma maia at the nasdaq, a beauty and wellness platform. >> well, it's a spac people can buy it and look how they did in the spacs before it's been distinctly suboptimal. but you know what, it's their day. it's their day i will say i have pfizer on. pfizer has never done my show. the numbers look very good, but i think people say it's vaccines, whatever how about the fact it might be just a really good company merck is a very good company i don't know what manchin is

going to do. we keep hearing about drug prices in this bill. they used to call it the spend a lot of money now it's the save a lot of money. i know there's diesel. >> we'll ask him in a minute >> the sequel? >> punch bowl calls it the deal that shocked d.c. in the wake of the chips -- we'll gtd to that in a minute. you're right about pfizer and moderna. they both raised the guide no additional buyback out of pfizer >> yeah, because pfizer, and people say that vaccine is one and done and they go on to the next chef. hey, chef. >> yes >> honestly, the drug stocks are a bunch of chefs i don't understand what's happened here because these companies are very good. i'm going to posit something pretty radical which is that, you know, if powell is done or going slower, then you probably want to edge more toward money

k -- honeywell than pfizer. a very good story when he was on "squawk box" this morning. and, i mean, really good story and -- oh, there it is, up 6 unless you're in hershey -- what the heck is hershey doing? have you ever met the woman who runs hershey >> yeah. she's been on. >> she's dynamite. >> 180 beats by 12, raise the guide, 15% div hike. definitely a good news out of hershey. honey trims the high end of the range. aviation is clearly -- >> aerospace and oil and gas he's built a great portfolio he shuffled that portfolio from, you know, what he got, david cody i always say it's not about friends but i'm friends with dave and dave left, hi said it's yours, darius, do what you want. and darius did a lot of what dave did and it looksi like it's

the right thing. >> if you look on social media -- >> no! god. >> we're in recession, which, of course, is yet to be officially determined, but the price action this morning would tell you what >> you were hopeful that jay powell is not a dreamer when he said that things are going to pretty much cool off you then merge that with what brian was saying yesterday from bank of america, a large bank. and you say, look, there's not going to be huge layoffs, and there is going to be a lot of materials that you'll be able to buy at lower prices that maybe the price hikes for all goods that we've seen endlessly are over we've not been able to see yet whether job hopping is over, which is how jobs go higher. it's going -- here's something no one wants to say -- it's going jay powell's way see that that doesn't elect -- i'm not trying to get anybody elected here it's going jay powell's way. >> right >> he can now go away.

i mean, when you listen to the meta call, i'm serious, the layoffs are not where you thought, because we're so used to those companies being secular growers and suddenly there's mark zuckerberg saying it turned out we're a big, cyclical business and it's not good, it's getting worse. if i worked at meta today, it would be kind of like, hey, you got anything for me? >> polishing your cv >> i can take a nice pay cut i'm in the metaverse right now i want to be in a tool and die company. there, that's the economy. >> so how about apple and amazon tonight? how important is operating income on amazon to. >> i don't know. the qualcomm call, which was not nearly as bad as people think. they're out for cristiano too. he didn't guide down that much, kind of like bill mcdermott. not as good as bill with servicenow, but when he was asked about how apple is doing, it was strictly no comment

they don't ever mention that some of your other customers besides samsung, with an extension, and he could have said business is great he didn't say that but he said business is good for high-end phones. apple doesn't sell low-end phones finri, this is not mana from heaven and you're better owning aerospace than you are owning software space >> they do definitely trim is guide on 5g deliveries for the year >> it was not great. qualcomm, if you listened to the call, it's down yesterday, the call was about how we're big in auto, big in ai, we're very big at the edge computing, but the really big one is cell phones and cristiano did not talk about cell phones. he went back for others, which then tells you something 25 ot

25% of their business is good. they have an analyst meeting in september and they're closely linked with gm do you sell it here? no it sells at 11 times earnings this is not an expensive stock >> ford opening at about a two-month high net income up 19 they did take a mark to market loss on the rivian stake jim farley talked to him about making money on evs. >> we have one big challenge in front of us, one big opportunity to totally transform this company, and that is to make money on these electric vehicles we're investing in the second cycle of products we're now starting to ship a lot of subscriptions, which we never did before we have a really bright future, but we have to deliver profitability on our evs >> i thought he was sensational. 50% increase in the dividend tesla doesn't have a dividend. 4.36 the analysts are still mostly focused on the costs even though they took that -- they had $9 billion in losses in europe in

the last few years those are gone but of course who was our favorite who is the person who's the most -- the wildest analyst on the street adam jonas here's what he goes. he starts by saying, "the raptor is bad ass." okay and you have too many people and the answer surprisingly was another candid answer, not unlike mark zuckerberg he said, yeah, we do, we have them in the wrong places but we're going to make the changes. he's a race car driver and he likes to win if he doesn't win, like number two is first losers what he calls them he's not going to be first loser. i liked the call >> jonas has been consistently wary of delinquencies. >> he's got to come around >> would you go with that score or what brian is saying about the consumer >> brian moynihan would tell you ally -- they're not a great lender they lend to people who aren't -- mary barra sid you have to raise rates much more

than this to even add $50 a month to the lease i think that farley is a magician the stock was at $24 sold stock there my instinct was to buy it back when i listened to him last night. he was the most excited he's ever been. i sent him a picture of my daughter in her prom wear. which took like a year to get. thank you. >> you talked about that for about a year >> i was going to use it for gardening. i ms.ed one season tomatoes galore and i'll bring you some sauce >> speaking of moving around, jetblue and spirit we have a couple sound bites set up one i think is christy, you, back in july >> this is fallon meets letterman. >> take a listen to this >> we've always known that this transaction just as the frontier transaction would face a significant amount of regulatory scrutiny but when we look at what the issue is in the u.s., the issue

is that four large airlines have about 80% of the market, then you have a number of much smaller airlines so the best thing we can do to create a more vibrant, a more competitive industry is to really empower this new larger jetblue that can bring low fares and great service together and make sure that the industry becomes more competitive, because we can bring our product and our low fares to more destinations than if we were just growing alone >> okay. wrong sound bite but -- >> that is >> yes >> is sound bite i wanted to run was from "mad money" where he denied everything he said and said this combination will never pass and had a lot of nifty things to say. here's what matters. let's go beyond that and talk about future rather than past. there's a man, a man who used to be a corporate partner in paul weiss, young fella, always sounds horrible, who is the head of the antitrust division. his name is jonathan cantor.

he will sue to block this deal he will sue so fast that i've got to tell you, i would rather have -- let's just say he's the secretariat of antitrust and what's going to happen is he's going to sue -- by the way, spirit did call the previous deal cynical and childish. he'll sue. these two companies really actually believe that if they give up some gates, the deal gets through, antitrust, go read anything that cantor has written. he's written many pieces, given many speeches. you do not cure a deal by giving gates to somebody else so he'll prosecute maybe they get a good judge, a judge who wants fares that are higher, a judge who hates the consumer, a judge who's never flown to west palm, and they'll win. >> i was going to say, air fares up 38 in a year. >> yeah. >> you don't think a more robust competitor is good for the consumer >> i think that the places that they overlap are awful for them

if you take a look at what cantor has written, which is that you can't cure an inherently uncompetitive deal by giving gates away. now, can they win in court anything can happen. but i think i have a very good read on what cantor is going to do here. he's going to use everything, everything that was said by spirit against it. >> sure. >> he's going to get a copy, get the transcript from "mad money." >> look, we were working with with our shareholders in mind. >> yes exactly. the sound bite we had was basically that jet blue's just, you know, manny, mo, jack, curly, mo, it was everything, it was mo, curly -- remember how bad joe was? he might have alluded to chef. >> yes back to this morning's gdp number, the u.s. economy contracted 0.9 in q2, second

straight quarterly decline joining us from the white house, brian deese, national economic director thanks for the time this morning. >> happy to be here. >> we don't want to devolve into the recession label debate, but i wonder, do you eventually expect to declare a recession >> we're certainly in a transition and we are seeing slowing as we all would have expected but i think if you look at the full data and the type of data that we look at, virtually nothing signals that this period in the second quarter is recessionary obviously, in the labor market, 3.6% unemployment but also 1.2 million jobs in the second quarter, 2.7 million jobs over the first half of this year, that's not what typical people or what the we would call recessionary looking at where we are right now, the consumer continues to powerful forward with resilience, although, you know, somewhat moderating levels as

you would expect we are continuing to see businesses invest. and we think, we're hopeful here the legislation that we're contemplating, hopefully we can move forward with a strong chips act vote today, would actually provide some serious longer-term incentive for businesses to accelerate business investment in the kind of areas we need in this economy >> some suggest this morning that the methodology is too heavily weighted to goods over services do you think that is the story of the data that we're getting >> look, i think we know both the important elements and the drawbacks of initial estimates of gdp they tell us something they don't tell us the full picture. we are going to leave the determination up to the technical experts, obviously, and look closely at all of the data obviously, initial gdp comes in. that data will be revised and we are getting important data real time as we are already out of the second quarter we're seeing data -- we'll get

pce data tomorrow and then jobs data next week this is all, you know -- these are all data that we'll keep a close eye on i think that, you know, a lot of economists have come to the view that looking at a combination of gdp and what's known as gdi and bringing them together probably gives you a more accurate picture of where the economy is. but, you know, you never want to put too much emphasis on any one month or any one data point. that's certainly how we try to approach these things. >> brian, it's jim good to see you as always. when you parse what jay powell was saying, i think you could say, look, we have on the supply side, starting to get a lot of supply, whether it be housing, autos, what you buy at retail, but we can't find enough people, so we still have this demand problem, and -- well, demand very strong, but we have to pay people more than perhaps we'd like if we want let's say lower inflation. what do you do

you can't make people -- can't find people, but that is the problem. we just seem to be in a situation where a lot of people haven't come back to work yet. >> well, i would say a couple things on that the first is if you look at prime age workers in the united states, we've actually seen over the course of the last 12 months the fastest increase in labor force precipitation among prime age workers than we've seen in any modern recovery. at the same time, we need to get more people working, and the good news is that the strength of the labor market really helps do that. as you know, we've seen on the wages side, wages are continuing to be solid. they have cooled somewhat over the course of the last three months compared to prior months, but we're still seeing the wage growth being the strongest in the bottom half of the income derision that's a positive thing in terms of overall economic activity but we know things that would help at the margin, right. we know that it would help if we could have a coherent

immigration reform policy on this front we know that it would help if we can work with business and parter in with business more effectively to target training and workforce investments to actually connect people with jobs so, for example, we've been trying to work in areas like trucking and cybersecurity where we know there's a real demand for jobs and also willingness on behalf of the companies to invest in training, demonstrate to people there's more of a career path here involved. so there's a lot of opportunity for us to work more on things like that while also trying to move the ball on policies that would help like immigration reform >> excellent i always like to be constructive as my colleague, carl, knows macron 300 orders of planes for airbus by just kind of saying to the chinese, this is what we need why shouldn't president biden be directly trying to beat macron and get those orders for boeing?

2 million jobs, a lot of them union jobs on the line here. can the president do what's necessary, perhaps lower tariffs, to get those boeing orders and put a lot of people to work and at the same time stop macron from getting all the orders for airbus? >> well, the president, as i think you know, had a call with president xi this morning. you know, what china needs to do is to step up and fulfill the commitment that it already made. as you know, the chinese committed to those to purchases of airplanes, and what we expect and what the president is clearly communicating is our expectation that china will meet that commitment. so rest assured that that's high on our agenda and high on the president's agenda but i would say that, you know, we're not just going to wait and ask or even push and pressure. we're going to take action here in the u.s. to make sure that new investment comes here.

as you and i have talked about, that's what this chip act is about, right, which is we need to not just wait for china to move, we need to move ourselves, and the more we can demonstrate that we're going to do that as country, the more leverage we'll have internationally >> finally, brian, the tape this morning has an administration official saying they're optimistic there could be some positive announcements coming out of the next opec meeting what's going to stop opec from saying there's no way we're hiking production when one of our biggest customers is seeing negative gdp >> look, i'm not going to speak for opec i think they have already indicated how they're looking at these decisions, and obviously the president was in the region a few weeks ago, and so we'll wait i'm not going to try to get ahead or speculate but i think we still see a global oil market that is to supply continue trained and that the right thing to do in this context is to bring more supply online in a responsible way. they have the capability to do

that, even as we are doing that in other quarters with the spr and other tools as well. >> brian, appreciate it. good context around the data we got today, not just gdp, claims as well. brian deese, see you next time. >> see you time for the bond report we talked about the wild swings we've seen in yields so far this morning. the 10-year down to 2.66, the 2-year well below 3.00 this morning. we'll be looking for maybe hawkish commentary from fed officials in the next couple weeks if, in fact, the market got powell wrong yesterday for now, 10-year is 2.68 we're barely holding on to s&p 4k back in a moment

jim mentioned stanley black & decker earlier this

morning, this is a 13% drop. our parent is in there, two, back below 40, as they fail to add broadband subs for the first time ever. peacock relatively flat. brian roberts making some comments about the call, about the unique environment we're in. session low. ♪ ♪ 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. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq ♪♪ ♪♪ ♪♪ ♪♪

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let's get to jim and stop trading. >> we missed so many point out that the drug stocks are leading us down, which is odd. if it was a recession, that should be you want hertz is a company i want to talk about they have a new ceo, he used to be a cfo at goldman sachs. this is up, and people are traveling. even corporate is coming back. i know we want to be down and sad, but i refuse to be. it's the drug stocks and it's silicon valley >> meanwhile, harley is up 9%. >> the merchandise is selling

very well at harley. jim, how about tonight >> i have secretary raimondo, who i think is brilliant i have pfizer, and then nextly, mark some needer schneider. >> i'm always love crackle bars. >> those are great. >> i used to be their spokesperson for about five minutes, until there was a separation from me and the cats and everybody else for that matter >> jim, we've got a lot of work to do today. we'll see you tonight. "mad money," 6:00 p.m. eastern time. meta shares down almost 8% don't go away.

good thursday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla here with courtney reagan. david faber has the morning off. s&p trying to hold 4k here

tech giving up some of the gains from yesterday as we have short-term yields. >> we are 30 minutes into the trading session. here are three big movers. shares of facebook's parent meta falling after the first quarterly revenue decline ever, and keep an eye on spirit, and then finally in the green after reporting an increase in ad sales along with higher transaction fees for the quarter. >> those transaction fees coming in handy >> gdp contracting for a second quarter today, on the heels of another big rate hike. steve liesman joins us with a breakdown. >> a second quarter of negative growth

some say yes, others say know. everyone represents a sniismg economic slowdown. gdp volunteer, first quarter decline. that was actually healthier with consumer spending growing 3%, there was a worry of a goose egg in the second quarter. consumption up just 1%, by the way, negative 4%, plus 4% on services, investment is down, trade adding 1.4%, reversing about half a decline inventories dragging down 2% while we remember the actual dollar growth surging, but it was all taken away by higher than expected inflation number that was a big part of the miss. it's not adequate -- but

inflation and supply constraints. jay powell wouldn't answer questions about how a recession headlining into the analysis not enough to prompt the fed pivot they wrote -- with labor market conditions still holding up, it won't reverse the plans. right now there's a greater than 1% gaps. the fed sees year-end 23 at 3.8%, their most recent proje projections. the market right flow? sees the fed cudding rates guys >> into sort of talking about the gdp, and then about powell i thought it was interesting that that mohamed el-erian, the prescription message, and thus

the need for the actions the fed is taking, and then potentially more neutral what did you take away from those two messages >> yeah, i think that some -- look, it's very interesting that people walked away from that press conference with different attitudes. a lot of people in there, people didn't hear -- somewhat optimistic message if you look at what he said, he said the best way to know where we're going is to look at our projections, even though he said they're old. those are 3.25, 3.5, going to 3.80 that's the best i can do right know i think it's a period of a on the of uncertainty the reason why i think powell did not want to front run his committee or himself is he doesn't have to make a call under september for the next

one. if they do get some sense that inflation is behaving and coming down in may, it may allow to do somewhat less. if not i think the fed will still by full bore >> yeah, like always, the timing is going to be critical for some of those data points and, of course, the action that follows. steve, thank you so much for bringing that to us from washington. results roll from from meta, alphabet, microsoft. tonight we heard from amazon and apple. deirdre bosa brings us with the details. she's been busy and will keep being busy. >> still two of the most crucial names so far have to go tonight. there is a sense of relief alphabet, microsoft, were less than expected. meta was bad, but shares perhaps cushioned from greater losses today, semi results have been mixed, but meta hasn't been the

meltdown that some feared. questions today, though, on whether that was over -- we were just discussing this, and we talked a lot on this about "techcheck." is less-bad really good enough the fundamentals are still facing some headwinds. zuckerberg said ad demand will persist, and they're already running up against -- it's holding up better, with the details on cloud as well texas instruments provided some optimism earlier this week but qualcomm was last night. the headwinds are not expected to ease soon we headed into the huge week, now that we're nearly halfway through earnings season, relief, however, could quickly turn depending on what we get from amazon and apple will amazon be more -- for

apple, it is the only megacap that isn't in a bare market, so any stumble from any of those names could quickly reverse sentiment. we'll see, carl. >> big numbers on deck tonight, for sure we'll talk about that in the morning. dee, thanks. let's dive deep years meta it had the fefr-ever declines in revenue. nearly 3 billion losses on the vr segment jason, it's great to have you. >> thank you. i have seen some commentary that revenue beat some on the street, maybe the only digit at ad names with the guts to guide. do you give them credit for some stuff? >> you know, generally people don't like to hold currency against them, so ex-currency,

they were up 3%, but that was a slowdown from the first quarter. and, look, they're not really giving you a real -- no pun intended -- a real number for reels. so i think people are trying to understand how far behind meta is with reels versus tiktok. our best guest is they're probably about half the size, where going the shorts it roughly about the same size as tiktok i think mark zuckerberg did a great job on the strategy, a much more offensive call than the snap call. you know, what happens in the economy is out of their control, and i think people do think that they will weather the old apple privacy headwinds better than other companies. >> right like better than whom? mostly snap and tiktok

>> how important is the monetization of reels to facebook's near-term success if we don't have a good understanding of the size and impact that it's having right now? >> yeah, i mean, look, i think where they did surprise was on the engagement you had some folks expecting facebook to be down in daily active users, and it wasn't. and so, you know, they are, you know, driving engagement and they're purposely getting users to see real ads. the issue is they're not monetizing thor ads, so it's cannibalistic to those in the first quarter, the price was down 8% versus volume up 15.

so it still seems like in the quarter they would continue the number of ads, but less -- and reels ads for now getting a lower trials that being said, this is a redo of the story with stories -- forgive the pun there -- and i think there was a lot of concern at the time they would not be successful, and they were. i think the issue with the stock, it's macro. we are look like the street low for kind of revenue for the fourth quarter, and for earnings for next year, so these numbers may just not be low enough while i can say a street low, the stock is trading 15 times earnings, including the facebook realty-led losses, you know, this is a part of momentum stocks, and investors may not be super comfortable taking a bigger position until they think

they're done and there may be another cut coming. >> but you think investors should be comfortable here you like the valuation right now? >> we do we went to 190 i think that might be among the street low price targets, but that's a significant up side from where the stock is right now. again, with the gdp number, maybe the fed slows down we do think the next two quarters are going to be rough again, tiktok did not publicly report so what we would be doing is saying what is the company's market share, right, at this moment if everyone is down, that is okay, as long as you're not losing share, but we can't do that with tiktok so, you know, they are doing better than, again, than snap and twitter, and, again, even alphabet's youtube is slowing on

brand advertising. so, you know, we are optimistic. again, stock discounts, the future, we think 15 times with a better-case earnings estimate is a pretty attractive level for this company. >> finally, jason, how long until reels monetizes at the same rate as other services. does it make sense to step on the gas on reels, when that's taking money away from other more profitable parts of the business >> so they talked last night, basically saying that they took stories about four to five years to get to the same level of monetization now, i think they met price per ad, not total revenue, and so, you know, they started reels last year, like one year in. they did say it's progressing ahead of stories at the same point of the elf lice, so if

stories took four to five years, maybe this takes three to four years, you're one year in, so maybe you're two thirds of the way there, but the reality is they have no choice. consumer behavior is shifting. we've seeing it with tiktok. if they don't adapt, you know, these lose share they have to do this now what they do need to do is teach consumers, hey, if you don't want to see reels, you can press certain things and it goes away, right? right now, it's still early enough, when people open instagram or facebook and they see reels, they say, why did this change? they have to skate to where the puck is, to where it's been historically >> they are definitely trying to communicate that insta is going through some changes. as we go to break, a road map for the rest of the hour the fed continues to hike.

former fed vice chair will talk about it. being deal for spirit. the big question, will it be approved ch robinson is with us st ag show ahead as the s&p is ju shade down below 4k don't go anywhere.

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chips this morning having a great month with the smh ticker up. it's still underperforming the market year to date, down 25%, almost 30% up its 512-week high. one came over as qualcomm is falling, the company issues is weaker than expected current quarter outlook. christiano amon will break down the corner next hour >> on a huge week for chips. coming up, we'll check in on the supply change with the ceo of c.h. robinson, with you biggest freight names in the u.s., reporting record profits for the quarter. don't go away. we're back in two.

♪ ♪ 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. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

c.h. robinson outperforming

the s&p year to date, surpassing expectations, and achieving report profits, digging into supply chain challenges and recession risks. the ceo join us now in an exclusive. bob, thank you so much for joining us you pointed out, i believe, the last three years have been so very volatile. in the last eight quarters you've reached an adjusted gross profit, hitting a new low and a new high just in the last eight quarters a nice quarter here, though, with adjusted gross profit, up 48% year over year if the economy does soften as suggesteding in this morning's gdp print, what happens? >> the great news about our business is we have an extremely resilient non-asset-based model. if you look back to the second quarter of last years, we grew earnings by 35%, so different parts of the freight cycle, but

still really strong growth what we see is many of our clients look to reduce the fixed costs, look to the supply change as an area of savings. we tend to see growth in our outsource business our model is extremely resilient. we're a lead egg in er in the mt share. >> and how does it work, then, bob, as prices change? you typically have 12-month contracts, but you also used the spot market as well. how do you make sure your customers stay with you? >> yeah, in our trucking business, about 6 on% of our portfolio is tied to contract business, which is typically 12 months in nature that's always a fluid environment, in terms of pricing, working with customers in times of increasing costs, as well as decreasing costs to ensure no one party in the supply change is really

disadvantaged from the market. that will always fluctuate as you said, the spot market is an important strategic consideration in times like this where the spot market is less expensive that is the contract market specifically, so using that strategically is a way to help our customers manage their costs through this type of environment? >> you do say, bob, you expect truckload costs per mile to decline further sequentially, year on year you mentioned manufacturing, and we've been watching the pmis, but you mentioned housing as well can you talk about how much those are weighing on the market, at least on price snowing -- pricing >> it's hard to pinpoint, but clearly the trucking market is different than it was 12 months ago. in our earnings call, we cited retail housing and three primary drivers. manufacturing has held up the best out of those three. retail is an interesting one to look at, it accounts for about

10% of our domestic volumes. in the first quarter we saw increases of about 4%. in second quarter it declined by about 4% we're try to go understand how the balance of the freight markets will play out this year. >> that is really interesting, bob. obviously i cover retail pretty closely. what do you believe that is suggesting does that suggest some of the congestion in the supply chain is lessening, or is that more about a falloff in demand? is that about inventory pulled forward? >> i think there's a number of factors at play. some of the this is just the aftermath of the supply change disruption we've been in the period where ocean service reliability has been in the low 30% reliability. that's slightly improving, but we have inventory out of place

relative to seasonality. the current peak and ocean freight, i think we'll see improved service levels, but we're not back to where we were pre-pandemic >> very interesting. bob, before we let you go, if you can sum everything up for in your expectations for where the economy is going, based on where you're seeing with customers, current contracts, requests on negotiations going forward >> in general, i think there were some calls earlier in the quarter for a freight recession and end of days for freight. weaver simply not seeing that. we continue to see a strong freight environment. you know, we look -- one of the ratios we look at is average between available loads and available trucks that's gotten back to about the five-year average. we've been in a chaotic environment the past couple years, we're finding that average, and the forecast are for positive volume growth throughout the balance of this year, so i don't think we're headed toward a freight recession.

>> very interesting, bob thank you for joining us here today on the heels of your earnings report. >> thank you still to come this morning as you know, the fed raising rates by 75 basis points for the second time. what that means for the markets and whether there could be more pain ahead we'll discuss with alan blinder, coming up after the break. - in the last two years, we quadrupled our team and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting

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president biden speak with president xi jinping, this is the fifth conversation of their presidencies, as biden trying to find new ways to work with the growing power. china has refused to condemn russia's invasion of ukraine, adding further strange to that relationship the principal of uvalde, tex, is disputing some key

findings of a electricive report on that attack in a statement issued by her attorney, mandy gutierrez rejected a finding that there was a culture of complacency at robb element tear school, she also said the lock worked when a custodian checked it the night before the new surprise design will start august 1st that's the very latest courtney, back over to you. >> thank you very much, frank. markets are in the red with the nasdaq underperforming here this morning. and since the june 16th bottom and then they just sold right into the rally

>> look at this. cathie wood has been on a tear, but not today. tech in general, bank stocks, also well. just running out of the steam. slightly, but not as bad as some people were afraid of. now going back to 2019 levels, and i want to highlight herkie's

and pricing is the key -- and pricing up 9.5%. volume up 4.6% so where are we right now? look at this, the s&p is up 9% since the june 16th bottom ark innovation fund is um nicely since then consumer discretionaries is up we've had housing moving nicely. travel moving nicely tech has been up semis have been up as well it's the growthier parts of the market essentially moving nicely right now. q3, q4 earnings is where everything is focused.

we're not seeing the earnings apocalypse that people were talking about. ed fed is hopeful they'll be done by the end of the year powell, of course, would not commit to anything like that they still have price hikes in 2023 but powell is getting the slowdown he wants right now. that may be one reason we're getting a relatively muted response to the markets today. carl, back to you. >> thanks, bob with us is princeton university professor of economics, alan blinder is with us it's good to see you again. >> nice to be with you. >> the fed chair said yesterday he didn't think we were in a a recession. he said a lots of the initial reads -- do you seeing any hair on today's print >> i agree with i think the consensus of economists that we're probably not in an actual recession right now.

it's not broad-based enough. this gdp negative today was basically with inventories for example, the labor market is super strong, but it's a warning sign, certainly awarning sign. consumer spending, for example, in this report was pretty weak not a catastrophe, but pretty weak >> so, then, how do you think the market's reaction to the presser yesterday -- and i guess also some of the creeping up in inflation expectations we have seen the last 24 hours, how much of the messaging is working for the fed and working against them >> you know, i think they're doing okay i wouldn't worry about 24 hours. the story of the last few weeks has been inflationary expectations in the marketplace, like the chips break even, for example, have been pretty muted, have come down from their highs before, you know in response to what the fed is

doing, suggesting what the fed is doing has credibility with the market and there's some discrepancy, as you would expect between the market outlook for the way the fed is going, and the way the fed has said in the latest seb was going, which was not contradicted by powell there's be a new s.e.p. projection, and we'll see what that says, but, you know, i've been thinking for a long time the peak was probably going to come in the 3 1/2-ish range on fed funds. i'm now thinking, you know, 3 1/2 to 4 that's not very different, given the uncertainties all over the place. i'm thinking the market is a bit ahead of itself. i think the fed will more likely

to plateau for a while and see what happens >> alan, timing is always still key for all of these things we're talking about. how sign do you expect monetary policy to be felt on inflation >> a long time i think one of the problems is people were expecting instant results. they know there are very long lags between -- and see an effect >> on the part of the inflation race, i'm talking about energy prices or oil, gasoline et cetera, and food prices,

against, keep your fingers crossed about the port of odesa and harvests outside of ukraine. there's some reason for optimism that those pieces of inflation lieutenants -- can an will fall pretty soon irrespective of having nothing on the fed. you've got to look at the core inflation rate. >> as we look ahead to the jobs numbers, how much is riding on that market? probably wants to see how mott race on jobs i don't think the fed would be spooked by that, though. they wouldn't expect it. the economy does look like it's

losing some steam. you should see that reflected in the jobs number, or frankly the fed wouldn't be dismayed if that happens. still, we're talking about positive numbers you know, with over 300,000 jobs per month, new net jobs per month, it doesn't look, feel or smell like a recession. >> right that's one of the confusing parts about the period we're in. >> alan, we appreciate it. thank you. >> you're welcome. >> well, after a months-long bidding wear, jetblew finally announcing a deal to buy spirit airlines phil lebeau sat down with the ceos of both companies and joins us with the highlights. >> reporter: this is what jetblue has been pushing for, and it's finally succeeded, and

here's the deal. $3.8 billion that works out to jetblue playing every shareholder $33.50 a share. the shareholders got 250 a share, and ten cents a month, a ticking fee that starts? ian wear of next year as it works its way through the process. as you look at shares of spirit moving higher, keep in mind the ceo has told us many times on cnbc he does not think a merger do get regulatory approval so when we asked him what changed, he didn't really have a concrete answer. >> we always had our stakeholders in mind over the last number of months. we had a merger agreement. we were actively soliciting on behalf of that merger agreement,

but now we are where we are today. we have a very exciting transaction on behalf of our shareholders and our team members. it will deliver a lot of value >> take a look at what will happen if this merger is approved, it could create the fifth largest airline in the u.s., again, that's if it reaches regulatory approval. shareholders are seriously questions it, but take a look at ulcc, that's frontier. the stock is up. it's been up the last two days since they had a deal for the proposed merger with spirit rejected we'll see how this works out over the next several months. >> what's next for frontier? does that mean they can or want -- can go after anyone else is anyone else available, really >> i don't think there's anybody they're immediately looking at

there's small, small low-cost carriers they might pursue, about you they believe this clears the runway. they about goant to jetblue's cost levels. >> that's going to be interesting, yeah, if they reverse roles. phil, a fascinating dade meantime, bitcoin on pace for its best month in over a year. we're going to talk to the ceo about his outlook as the company expands further into the private markets, when we come back.

let's check on one consumer name on the move -- best buy shares moved down marginally

after warning yesterday cutting the full-year forecast after the bell like many other retails, warning as high inflation has continued and consumer sentiment has deteriorated customer demand within the consumer electronic industry has also softened a number of analysts commenting, as you would expect, carl. i think the market also suggests not a surprise after we heard from walmart and target, r5 had an interesting research report whether it came out, saying they're doing a deep dive into the stores, worried about systematic challenges because of the crime, so a lot of the stores having to lock up the stuff. when you go in, it feels lick something is missing, but the employees are doing the best

they can, but it's a tough environment all the way around. >> we've all been in that situation, where you need help unlocking the case, no one comes and you're like, forget it, i'll get it some other time. >> absolutely. i think there's so many factors weighing on best buy, but a lot of the analysts are bullish on the management team. >> if it's all about the low end, the lower cohort, what explains rh? >> that's a really great question it seems so interesting that ceo is so concerned about what's to come, but they keep delivering on the results that's a head scratcher for me haim still waiting on a couch from rh, despite the supply chain challenges, i guess i was willing to get what i wanted. >> furniture is tough. he told us a long time ago it would be. >> yes. >> and big implications from what apple may or may not say. coming up on "techcheck,"

meta's first decline and why the mereet is still bullish on the na, relatively that's coming up in about 15

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cryptocurrencies like bitcoin rallies after the fed decision to raise interest rates again. how long will it last? we have a cnbc exclusive great to have you back, thanks for the time today. >> thanks for having me. >> first off, i guess i'm wondering why you think 20k-ish has been defended so well over the last few months. >> nobody knows for sures, but the last peak in 2018 has been 20k. so i think that's probably one of the reasons why there's a psychological barrier there. >> nothing regarding money supply or the nasdaq or some of the other correlations we read about? fundamentalally it's a mass clonal market, so the last

all-time highs so that is has a support concept to it. >> what do you think is the catalyst then for the next big move in pride, up or down? regulatory granularity, or institutional interest or return of the retail investor >> so that part i don't think anyone can forecast very accurately nobody really forecasted nfts, defi, which probably droech the last bull run. before that in 2017 it was mainly icos. very few people can forecast it. so for the next one and now the market is much bigger. there are so many more applications in the space. i'm not sure which one but i think all of those are moving in a positive direction the regulatory landscape is well they are not banning bitcoin or cryptocurrencies the macroeconomics situation

will be high inflation the talk about recession, et cetera, all of those things drive adoption into crypto >> but if crypto is so tied to macro factors these days, which it seems it is, even if you're just looking at this new move after the fed's decision and the move higher in both equities and the price of bitcoin, for instance, if a true recession takes hold and things sell off, why would one want to own cryptocurrencies aren't they only going to fall backwards if we truly are in a recession? >> to be honest, logically cryptocurrencies should move counter to the stock market. >> they should >> in theory they should be negatively correlated. but today the cryptocurrency market is so small that whenever the stock market crashes, the stock market, i don't know, is about 60 trillion something. bitcoin -- crypto markets altogether is about a trillion today. so when the stock markets crash people want cash

most people trading cryptocurrencies also trade stocks so right now it's positively correlated which is illogical but it's just the way it is right now. >> where do you think we are regarding the government, stable coins, there are so many other distractions right now in terms of regulation but some argue the s.e.c. continues to be the tip of the spear what's the industry's take on what gensler is up to? >> fighting for jurisdiction over the industry which is good in a way, which causes other problems in different ways it's a bit unclear sometimes the central bank, sometimes it's the securities market regulator sometimes it's a brand-new regulator. so most regulators are adopting trying to clarify regulatory

frame works in their countries which is very positive the u.s. is unique in that it's a large country with multiple regulatory agencies and now it's unclear who controls the space >> many of which i understand may be investigating binance or at least some of what binance does, the s.e.c., the justice department, the cftc, the internal revenue service going along with that, do you think they need a credibility reset after the terror collapse, the general crypto winter, it seems like for a while crypto had attracted even some of the nonbelievers thinking, hey, maybe we have to be in this space. is that gone do we need a credibility reset bigger than 1 trillion >> a reset is healthy, to be very frank as you said crypto attracted

quite a number of unbelievers or nonbelievers into the pace they're just speculators that means the market is over hung and there will be a correction and usually markets swing both ways. should only attract those who know how to use it, et cetera. i think even given the lou march terror crash, we weed out the weak players in the industry it is healthier than nine months, six months ago we see people, new applications in the industry, the investors in the industry now are long term, have a long-term view. i think the industry is much

healthier now than at an all-time high. >> keeping the speculators out is easier said than done when we get runups like that c.z., we'll see you next time. thank you. >> thank you, carl meantime markets are headed lower although we've erased some ly 1he losses on the dow down on4 points, reclaimed s&p 4k

the state of west virginia taking an esg standards to a new level today warning a slew of big financial names that they need to cut their ties to the fossil fuel industry or no longer able to do business west virginia today announcing that it is severing ties with five financial institutions the treasury there deems as being discriminatory towards certain industries, coal and pipeline construction. the five names on the state's list include black rock, goldman sachs, morgan stanley and wells fargo. west virginia treasurer riley morris says he derived the policy from conversations with coal operators who told him they were losing access to capitol over environmental policies so responded by boycotting certain

firms. >> we're handing them these dollars which are general rapted from the very industries they are trying to diminish those dollars in for us it does not make sense. we will not pay for our own destruction. we will fund those friendly to our economy, our jobs and our way of life here in west virginia >> but the wall street firms identified say they don't actually boycott fossil fuels altogether in a letter last month goldman said the firm provided $18 billion worth of financing to the industry morgan stanley in a statement to cnbc this morning said it was disappointed to be included on the treasurer's list adding it does not boycott fossil fuel companies. wells fargo said it disagrees. black rock still invests in coal companies through index funds representing more than 90% of its equities business but

informed clients it would be divesting active investments in companies that generated at least a quarter of revenue from thermal coal >> fascinating stuff, leslie thank you for bringing us that important story. it looks like that will do it for "squawk on the street" as the markets try to turn positive for the dow and s&p 500. "tech check" starts right now. i'm carl quintanilla with deirdre bosa and jon fortt qualcomm shares are falling despite a beat as guidance comes in below estimates yet another ceo warning about the macro picture. plus another weaker number and that's meta. as bad as feared, stocks down almost 8%. best buy, comcast, service now all turning sharply lower. and confirming all that corporate guidance gdp comes in light. we'll get a first read on q2, that's two quarters in a row of