we'll do that soon whether we're in a period where we don't get inflation under control, and that would get me worried. we'll do that next time. thanks, jim. >> thanks for having me. >> andrew, 50/50 i like myself more than you. >> i know you do but maybe we should just go to washington would that work? >> good idea let's not. i get a rash down there. make sure you join us tomorrow "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. bulls are going to try to hold on to wednesday's rally and see if they can push above the june highs around 4,180 yields are down as jobless come in 260 k ahead of that jobs number tomorrow. our roadmap begins with the country's largest employer, walmart, reportedly set to

announce some layoffs at corporate. lucent is lower after cutting production targets again as logistics challenges cripple their output on the flipside, fisker stays on track with its production of its suv later this year. ali vly baba shooting higher after saying its business improved in june we begin with the market and this new note from goldman today signaling a potential leg lower. they write, "without clear signs of a positive shift in macro momentum, temporary rerisking could increase risks of another leg lower in the market rather than signal the end of the bear market this is particularly the case if the positive shift is driven by the systemic community and not by fundamental investors." they're basically looking at declining command demand for stocks within multi-asset classes. >> they're saying we're setting ourselves up for a big-risk moment, that there's been a lot of enthusiasm based on absolutely nothing and that if that's the case, what's going to happen is we're going to have to get used to bad news hurting us.

the market is not derisked i read it much more negativity in the sense that things are okay right now, could go either way, but you just wait and see i don't know whether -- it's not -- i think it will be a piece that's talked about because it says please don't get comfortable. you're going to get whacked. >> do you think that makes sense given that september is usually not so hot >> i think there's going to be -- there could be some problems >> we have a midterm >> my friend john ellis, who does this great newsletter each morning, talked about how if you extrapolated what happened in kansas, you would definitely think that the democrats are going to have a far better chance than you thought. i think right now most of the people i have talked to are saying 30-seat sweep in the house, nancy pelosi says good-bye kansas, obvious liv a referendum

on roe v. wade, would say otherwise. it's the first time i've seen that the democrats are going to make a real stand on roe v. wade and not everybody is united in its hatred of it in the south. >> mcconnell yesterday saying that the lead in the senate, whoever gets its, its's going to be pretty fin. >> yeah. so, i mean, if you believe the republicans are good for stocks, then the kansas primary is a bad thing. >> yeah. given that and given the way we rallied yesterday in the face of all that hawkish fedspeak, cash ca kashkari saying don't count on any cuts, who's right, the market or the fed officials? >> i have a piece of paper in my hand everybody's got -- the way i read it is everybody other than costco has too much inventory. if you had to have a net worth of this moment it's the

abominable snowman -- well, the abominable yay where there is inventory everywhere throughout the system and they missed the yummer we think of yeti being something -- a couple years ago, if you have a yeti now it's like yetis everywhere and you couldn't spot the yeti in the -- >> you mean a sas skwauch, thing you never see. >> it represents the zeitgeist of the moment. too much inventory in low-end 5g a reading of the clorox quarter is massive inventory kimberly greenberger downgrade of levi's is inventory -- well, neither fisker or lucent have any inventories. >> you mean everywhere but cars. >> everywhere but cars and semiconductors for cars is just -- the system is no good.

look, we don't know really what's going on at walmart but you know what? they don't know what's really going on at walmart. so let's say we called bentonville, you gets one of those weird sounds, like you dialled the wrong number >> jim is mentioning this report that walmart may be considering lays off corporate employees about a week after slashing their outlook. by the way, that brings us to challenger, jim. second month of year-on-year increases in layoff, 36% >> it's setting up the fed wants to have people spend less money they don't know what else to do. i mean, they're certainly -- gasoline -- oil can't hold any level. oil is up and oil is a great -- it's a great moment for those who are short oil. there was an amazing article in "the wall street journal." the grains are all going down. the consumer has less money. july is setting up to have been a weaker moment for travel we all were excited about the

idea that, hey, they're not buying goods anymore they're traveling. now maybe they're going out. beer consumption not that strong you get that when you go out so, i mean, taco bell had a good number >> yeah. although shaq saying low-end consumer definitely feeling it we'll talk about pete's pizza. >> wants to go home. remember when you had mac and cheese >> kraft >> yeah. at home, you had mac and cheese and you had a feeling that your dad hadn't done that well. well, a lot of people's dads aren't doing that well because the fed has made it so that we're all scared look, you have all those guys come on yesterday. what is the sum total of all their fears? wow. all right. we'll get hit again. but that's what they want. they need prices to come down. you need plastic to come down, which is starting to box to come down, which is rolling over you need high-end semis to come

down that has not happened yet. >> you mentioned travel. booking will open about three. they talked about deceleration in room nights >> there it is >> may was great may was 20-plus and june reverted to the 14 area. >> people keep going back to this interview i had with chesky for airbnb, and they keep coming up with what i think is a wrong conclusion about the month of july i think july was okay for them, and i think that they're setting up for some very good numbers. but they're also the way you -- when you want to go to washington, d.c., you could spend $800 on a high-end room or you could -- for a night or spend $800 for a week. so airbnb is actually going to come out to be like costco people are going to go there because it's cheaper the costco number last night didn't look that great, but the notes are that it's just doing far better than anybody else costco, by the way, a lot of

people felt there were older people when you were growing up, costco is where you go if you don't want to pay as much. if you don't want to pay as much for that chicken, they have their own chicken farm for heaven's sakes they're not reliant on anybody you pay your fee and you get great prices, so if costco's numbers swell like i think they are, that says that the consumer is hurting it doesn't say, wow, they're really spending. >> certainly explains -- you mentioned the downgrade of levi's we have one at kohl's of cowan, one of under armour and baird. >> negative. >> they go to ten. cowan was at 60. they go to 35 on kohl's. >> oliver chen basically says they've got inventory up the whatever see, this is what i'm talking about. inventory, i'm talking about this at my investment club 12:00 meeting, inventory as mickey dressler would tell you, is the bane of every retailer and we're getting a glut of inventory throughout the system

in part because the fed made it more expensive to keep inventory, but they don't have any place to put the inventory because they've also made the consumer so scared the consumer is being told to worry. look, it's like the goldman piece. money managers, you better be getting ready to worry i don't like that. but it can work. >> certainly you talk and banks there's a report out today about credit suisse potentially looking at some av layoffs to help revive. and we've talked about the banks and -- >> the investment banking. we know that goldman sachs is quick to be able to -- if they have divisions that aren't doing well, very quick to slice those divisions. i remember when i was at goldman that mortgage business wasn't doing well and then one day you went down and there was no mortgage department like, where's the mortgage guys? just a bunch of copy machines. i knew that because i was the key operator i always knew how to fix a copy machine. >> jim, can you change the

toner? >> yes i am actually great at toner change glad you brought it up. >> if all this is true, then where does megacap tech fit in this playbook? because there's an argument if we have seen the top in yields then megacap tech will be the best it can be >> cow the lisa su, the ceo of amd, say that business is on fire that's because at that particular end, the high-performance computing, that's again like costco this is where you go think about -- think about the numbers that some of these -- some of the package good companies, they're spending 50% of -- procter & gamble there was a time with procter & gamble you would think they would know what the internet was. 50% of their -- the largest consumer packaging goods company in the world goes to the web, goes to the internet, which means really google and amazon so, i mean, if you're a supplier of chips to companies that are

web services, you're just high-end qualcomm, high-end cell phone doing well corvo not high-end cell phone doing badly. so, the high end is doing very, very well. now, the highest in consumer, we don't know, but the high end computer company is doing very well that's where you have to be. >> well, look at baba today, a sense of relief? >> well, they had that big -- i remember i was talking to tim cook about -- right before the -- he goes -- i said, geez, china is strong? he said of course, 618 i'm googling 618 faster and faster. oh, yeah that good consumer holiday you know what, i forgot about i would entirely when you're talking to tim cook, you don't want to be stupid. >> generally not a good strategy >> he doesn't have time. he doesn't suffer fools.

he's incredibly nice, but you don't want to be in a conversation with tim where he's explaining something you don't know because then you're kind of a 5-year-old >> yeah. as for baba, 175 beats by 19 revenue was ahead but the first revenue decline since the ipo. we saw signs of recovery across our businesses in june >> they're going to suck you in. has there ever been a moment after some really bad chinese number where is they don't put up some good chinese numbers and i actually think that numbers out of china are not exactly like american numbers. they'll put up what's necessary. we know that the -- look, we're sitting here arguing about how many ships we have in the strads versus airplanes they're flying over taiwan and at the same time we trust the alibaba numbers >> we throw that caveat out there with all things china. >> the biggest issue in china that a lot of the tech guys are

afraid of is chip blockade the chinese navy could do a chip blockade out of taiwan that's not taking over taiwan, but that's -- a lot of companies do not need a chip embargo right now. and it's great that we passed this chips act, but we're not going to be able to put those up for a couple years >> the president looks to sign that bill on tuesday we'll talk more about that in a bit, get to evs as well. lucen lucid shares tanking today. we'lta automros bs number and whether claims today are giving us any clues. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want -

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a few ev names to watch today. lucid shares are sliding after cutting production targets again. on the flipside, fisker keeping with its goals for the year saying it's on track to start production of its ocean n mid-november nikola, q2 production and deliveries at the low end. the ceo will be on b"closing bell" 3:00 p.m. eastern time an eight handle for the first time since russia's invasion >> i think that oil is really what to watch because what's happened is that while the fed is talking tough, the actual

building block commodities of the economy, whether it be the grain complex, whether it be the plastic complex, the paper complex, the oil complex, they're all going down rather dramatically that's a sign of a win so it's very difficult for me to see where -- why these people are so plain to believing nothing is happening it would be much better to say we're winning the war, but there's a lot more to the war than saying we're not doing anything it makes it seem like they're just some sort of propaganda machine. >> we are going to get cpi next week bofa says its will be a, quote, low-end number it will be reflective of all this energy. >> look, i don't understand why people don't see, you know, why every day we don't come out here and say, wow, where are all the buyers of everything i mean, today the journal piece was saying that the speculators are leaving grain.

agco, there was just a good harvest. first of all, there was a harvest in ukraine we thought 13% of it because wuz going to produce nothing seconds, latin america did really, really well. then the chinese -- i mean, they're not going out as much. i think its another all going the fed's way. they will not say it it's almost as if jay powell said i do not want for one second to say anything good. >> and if they did, you'd probably hammer him, don't you think? why would they want undo all the progress >> they're doing great they should just keep their mouth shut it's interesting as someone who does way too much talking, i can tell you that you can shut your mouth. i mean, sometimes on the weekends my wife will say that's very good, could you shut up then it's like a four-hour period we don't talk i think it would be very wise if someone said to the fed people shut up. it's going your way.

never complain and never explain, thank you, henry ford ford numbers are going to be good i just marvel that -- they're almost oblivious to the progress they're making remember oil was supposed to go to 150 >> i do remember that. goldman's target around 140. gas prices the lowest since february, down 50 days straight. it would imply a $3.75 average in a few days. >> there you go. on the way up that's what we talked about on the way down, it's like it's not happening. i remember when aluminum was a major problem in this company. copper, down 21% i just -- i am just aghast that nobody sees the deflation that's coming cert certainly the 10-year sees its the fed always wins. i don't care if they're late or

early. they're winners. the last thing to roll over are the rich people. i'm trying to figure out, for instance, is travel not that high for the rich people because every time you go, your plane is canceled but rich people are still spending but they don't have as much that they can buy they can go buy lamborghinis they're $450,000 a pop they're very nice. >> ferrari's results would argue they're still in >> it's great. you can test-drive a lamborghini and go 180 miles an hour but you alleges have to buy it >> yeah. we'll watch that obviously oil is a huge part of the story today. we'll get cramer's "mad dash" and count down to the opening bell still have to get to a bunch of results, cigna, eli-lily opening bell in ten minutes. leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description.

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what's damaging is its will cause investors in biotech and big pharma to steer investment away from certain types of drugs, in particular small molecules and mostly for cancer and specialized diseases >> talking about the quarter first revenue decline in a couple years >> let's go over this. it's absolutely true it hurt them what's not true is the ideatha the future is somehow worse than the past they've got two of the biggest drugs. they've got a weight loss drug which had a spectacular first month. it might have been samples but it was great then the fda's fast tracking their alzheimer's. now, their alzheimer's from the work i do with the brain foundation, there's genuine excitement in the medical

community about their alzheimer's formulation. there was no excitement about biogen i mean, biogen over and over again would tell me behind the scenes do not buy bio general, its will hurt you. but the alzheimer's drug at eli-lily, if your parents have alzheimer's, you're taking it. this is what i think happens that's further off in the future, but it does immediately reduce plaque. it's a great drug. can you imagine a lifetime drug? you take it every day because you don't want alzheimer's i'll take its. we'll all take it. >> it has proven to be one of the most intractable medical issues >> now, one thing i will compliment david revsine, and the cfo, they will not talk about it, as opposed to biogen, all they did was talk about it i am trying so hard to get them off their game to find more about the alzheimer's drug they're just tightlipped they'll talk about the drug that reduces fat, another drug many

of us will take, but not the alzheimer's, which makes me feel that you're getting a chance we sold some stock up here for the trust, and at 298 this morning i was salivating i said they'll gives us a chance to get back in but people are figuring out that it could be the largest drug of all time >> we'll watch it. going to open down about three opening bell in a few moments here quick reminder, catch us anytime, listen to and follow the "squawk on the street" opening bell podcast futures have weakened a bit. thopinbe iabt vee eng lln oufi minutes.

there is a bit of consumer headwinds given the macro situation. we've taken that into account and there's important we derisk that portion of our business but, you know, the key is that we have this really great portfolio that, you know, we can balance depending on what's going on and it's all about getting the best in the data center and the embedded business, getting those chips ramped and getting them to

the customers who want them. >> amd's lisa su with jim last night. >> yeah. this is very important there are two kinds of people out there, two customers there's the enterprise, which is the high-performance computing that business is on fire for them and the consumer, and that's pc, and she's forecasting that to be double-digit down. intel did a little bit less. this is very important because that will run its course they are moving out of that. as a matter of fact, i think this time next year their defense and aerospace will rival it because they bought xilinx they'll change their mosaic this time next year so you won't have to think they're shooting against intel. intel plays in that particular segment, which is why intel is having so much trouble >> we'll talk about coin once we get the opening bell cnbc's realtime exchange

the bell at the big board, fiscal celebrating and symantec is leading the opening bell coinbases opening up 30-plus >> larry fink at blackrock and his aladdin, leaders in the technology and fund business coinbase, now the s.e.c. has repeatedly told me -- probably has a 24% short position and voila, you team those two up and you have coinbase up 24. it could be up 34. i mean, the short position is that big >> today sciti names their upsid catalyst idea, not so much on the blackrock stuff but on the ei

ether, if that brings good moves to come. >> coinbase turned around the moment we heard from the senate that crypto might be regular lated by the cftc, much more of a loose regulator than chairman genz ler who wanted coinbase to be viewed as an exchange more than 200 crypto the s.e.c. is very concerned about whether there's crypto that are pump and done and those that are midlevel marketing schemes. the cftc loved to embrace financial engineering. and coinbase is the leader of that >> robinhood going to -- actually opens up about 3% here, jim. trying to push back on the notion there's somehow a target. >> well, i mean, they do have a good cash position, but i can't think for the life of me who would want them because their core base was decimated. and i don't know how strong -- i mean, they have these, you know, 22 million, 25 million, but if

you don't use it a lot or you've been crushed in the options market or in the -- let's just say more bizarre crypto -- by the way, when i speak to vlad, vlad'se ee e adamant it's like -- i call brokers sand say would you why robinhood in the answer is always the same, why are you bothering us a lot of times you ask smart questions. why are you bothering us then you realize making calls isn't the best way to make people think you're working hard. >> this is what vlad said about interest in an acquisition >> in one word, no i think we're in a great position as a stand-alone company. i love us as a stand-alone

company. we have a strong balance sheet we've got an awesome team. and we're delivering on our product roadmap as i mentioned at a pace we haven't seen before so actually, i flip it on the other side we actually see opportunities, particularly in this market environment, to leverage the balance sheet that we have that's about $6 billion to acquire companies that can help us accelerate our roadmap. >> well, they do have a lot of money. look, i struggle when i actually talk with them, i struggle over what happened in terms of they got $5 billion in, which is very important, but of course their actual assets declined because what people are in, and that's not vlad's fault, what people are in really got crushed during this era they're in this -- all the stuff that we now sit there and say,

wow, that was part of an amazing bear market, it's almost like that's where a lot of people were and they're trying to develop retirement products and gets beyond the notion that they're gunners. i think they can do that, but it's a really tough environment to do that a lot of people -- a lot of people left this market. they lost a lot of money people put figures together for me about spacs it's really rather incredible. it's almost as if you just decided to lose money by -- saying, you know what, i can lose money faster than you it is that breathtaking to see the data she put together about spacs. >> although back a year ago, when we were doing a lot of this from home, actually, right, talking about the boom, people were saying how can i find a way to short this? because this is ridiculous. >> right remember, they were shorting lucid.

why? they felt lucid wasn't going to be able to make nearly as many cars as they were projecting well, no one was as negative about lucid than the numbers that came out today. going back -- i was telling ford that lucid is half your value, but they made 300 vehicles in the month of april 300. well, no i mean, you can't have a company valued at $34 billion if they sold 300 cars. by the way, they're still doing the reservations you know, as a method. anthony bourdain was a great writer i loved him. his first book was called -- it was called "no reservations. i'm not looking at reservations for a metric that was two years ago don't tell you you have great reservations they're made to be canceled as i know from the restaurant business >> speaking of reservations, jim, restaurantings today, qsr,

not too bad. 82 cents beats by 9, tim horton up 15. >> tim horton was doing quite well it was their al bra trosz. so congratulations to them you have jose? >> coming up at 10:00 a.m. >> that will be terrific he's great restaurateur. by the way, so is gibbs at yum, but the problem with -- he was traveling so i don't want to say he was ducking this, but yum had a russian problem and yum has a pizza hut problem. it's like, you know, sometimes when you're in the dog food business and you put on the can, new and improved, the dogs are not sure >> yeah. pizza hut and papa john's today down three >> oh, no. >> uk really hurts 20% hike but they say increasingly difficult macro environment. >> only six ingredients in their

pizza. i like rob lynch very much he's been on a bunch of times. the pizza katz gory has gotten quite tough. >> remember when it was the end all be all, all things, restaurants and stocks >> yeah. but i happen to like this new guy at domino's. we have to give him some time. russell wiener domino's could be putsing in a bottom people like him. they understand that he has got great growth but the company got a little bit off the rails i prefer domino's to them. i think domino's got a strong leader >> you've always liked those guys >> the stock was at 10 when they changed management, and, you know, i got -- came in to me and said, listen, do you think we're better than a cardboard box? i said, i don't know depends on the sauce >> i love that story >> then they did that beginning of the move the domino's was

when they did the famous super bowl ad where they did -- you know, they did, what, what would you call it, consumer trial of cardboard versus their pizza >> yes >> the cardboard did come out very well. >> yes, yes. sticking with food, you know, it's not often we have stocks near all-time highs that aren't energy but kellogg's, they could do -- >> well, the numbers there were so much better kellogg's, looking at the former ceo right here, kellogg's did numbers. kellogg's did numbers that i never thought could happen my hat is off to them. they are creating value. they're doing some separations i just cannot believe how much -- kellogg's and general mills are the two stars. >> they raised the full-year revenue guide. cash flow to the high end. jim is mentioning carlos

gutierrez. >> used to come all the time on me i think he's no longer at our station. okay let's go beyond that kellogg and general mills have like 30% and 29% of the cereal business post has got 18% the cereal business is one of those businesses, think about it, grains are coming down, the grain is smaller than the box, and certainly smaller than the s cellophane thing that's hard to open up. buy one get one, you have everybody. >> feel free to stay if you want i know you have stuff to do. >> i have president xi i'm going to ask him about the cereal business. he's got some good numbers no i mean, i don't even have chen cho. wow, you guys have got everybody. >> it's a good morning oil right now closer to 89 than 90, jim. >> yeah. i have a hedge in my -- talk

about the hedge that my charitable trust has, which is that's it, that's the achilles heel of this market, other than the possible blockade of chips out of china the only thing to really fear is a spike in oil it's the goldman view. because we don't talk much about russia and ukraine anymore if you could get it so that russia was not shipping oil, and you get the petroleum reserve withdrawal of a trillion barrels a day, you would have a spike in oil. that would cause the goldman view to hurt right now these stocks are in free-fall, reporting great numbers or not conocophillips >> i was going to say this morning. >> i looked at that number and said if oil were over $100, people would be paying $100 for conocophillips but no i think we have to watch oil that's the thing that could wreck us

that's its, though you're not going to get big wage increases if you do not have the engineers fleeing from meta and going to google. every one of those conference calls for the hyper -- well, the tech titans as they call them, is just -- they're just not hiring and that means they're leaving a lot of jobs opening, and i think that -- open, and i think what that means is that's where you had the big job hop in wage increases, in engineers. remember, i told you a white-collar recession one would tell you the businesses are strong but they don't need more people they just need more computer power. it's like a bill mcdermott from servicenow. >> exactly right or anything nadella says about technology and inflation >> exactly

they recognize they don't need more people. they all had dreams. like meta. people used to post like mad now they're not posting a lot. so they have to find something i felt the reels had a good run, but tiktok is crushing them. i have a feeling when we see the tiktok numbers we are going to say, unless somehow that we can say you're a manchurian candidate if you watch tiktok, wow. their numbers are going to be the best >> it's interesting you mention meta because we are getting official word about their bond market debut >> yes >> a four-part offer one of the few s&p companies with no debt >> look, they have a chance. my charitable trust owns its, but i did say last week, i bet on the jockey, not the horse i don't think that the metaverse, which is a really good thing, is being picked up the way i thought it would.

>> a three- to five-year time horizon. what were you expectening at this point >> well, i thought there might be kind of a grounds swell and i was hoping gamestop would turn itself into distributor, and probably will, because all he does is watch tv, brian cohen. but i don't know it's almost like they have a patent -- like they're a drug company and there will be this period where there's nothing, and then maybe there's a ramp-up and they have to make it easier. they have to make it so that we all want to be in the metaverse. right now we prefer not to be in the metaverse. maybe that's because we haven't been in the metaverse. once you're in it, it is a lot of fun oh, my god >> we'll all find out one day. >> i have genuine metaverse film with mark zuckerberg and we continue to run this one, which -- >> there it is are you happy now? >> notice how if you take a look, you can't see the -- there it is, the biceps. >> huge. >> look at what he did >> jacked.

definition and everything. >> he is -- >> you're much bigger than he is in that clip right? >> i actually like the guy >> yes i know >> his folks like him. i like him his wife probably likes him. come on. there's cohort there it's a cohort. >> before we run out of time, jim, while we're in media, paramount, two-cent beat, revenue up 19. they argue more sign-ups, gross net sub ads of any domestic premium service in the quarter >> how is its doing? >> not as well as today as warner brothers actually they'll be at the highest level since early june >> if you want to get to that labor day party. >> i don't think he does those >> one time in "the new york post" it was listed that i had a fabulous time at the party, but

i wasn't there, which i always thought was incredible maybe my digital win was there, and that i was far ahead of zook when its came to the metaverse paramountz -- bob bakich, no matter what he does, he's kinds of like the oil of filming it doesn't matter. conoco, paramount, they do really well. nobody wants to buy. paramount. he's doing the best he can you know, he v its's kind of like "star trek," giving its all he's got >> quite apropos their franchise. >> absolutely. in the earlier show on "squawk" they love to talk about "top gun. that's all i have to say about that >> 43 million subs little by little >> but why is it moving? >> because there's worries about ad spend, obviously. >> why does hulu have constant ads? >> do they >> i can read a book watching a hulu program i read a book. i get the book done.

>> you don't pay for the ad-free service. >> i should. but i wanted to finish "war and peace. >> disney will be coming on the way. we'll wait for those numbers >> disney, which my charitable trust owns, has been horrendous. i always like to point out when something is really horrible, but the stock has made a big move >> almost 20 buckings. >> a very big move i think the theme parks are great. paramount's theme parks not so good netflix's theme parks awful. >> yes as you said before flatish action on the index, though >> i'm retiring. >> oil still sub-90. let's get to bob pisani. >> important story, oil below 90 the market is showing its preferences again, growth over value. take a look at the sectors today. there's an incredible run of technology stocks we've had. cathie wood's ark fund is on a real tear. tech is there. and what don't they want energy this is growth overvalue and even defensive names are not

that interesting peak travel, peak oil. peak travel, the numbers were good july looked a little weak. maybe it was cancellations overall here, but did you see lufthansa? they talked about forward bookings august and december, 83% of prepandemic levels. they're pretty optimistic. this is lufthansa, which has had an awful sum we are cancellation, and they made some positive comments on travel. peak oil is a lot more interesting. have you seen what's going on? since oil topped early part of june and seen what's happened since then, what the market has been doing, essentially forget about oil. oil is well gone here. since june 3rd, up 1% in the s&p, tech is up 5%, energy is down 17% what does this tell you? the reason this is happening is wall street's looking to the 2023 earnings estimates. it doesn't like what it sees on oil stocks here. all the big oil companies, occidental, exxon, chevron, they're all expected to see notable drops in their earnings

in 2023, and the reason that's happening is because these are tied to oil, and oil prices are expected to be lower in 2023 oil is about $90 look at this oil futures contract it's been in what we call backwardatio next for a long time, but they're expecting oil by mid-august next year to be in the low 80s. so that's impacting the way people look at this. oil stocks tied to the price of oil, and stocks don't usually go up when the forwards estimates are going down, which is what they're doing right now. so the market, if you see what's going on long term, seems to be pricing in a peak in oil fundamentals at this point and the 2023 estimates, puts up that next full screen, are lower than 2022. that's really why oil stocks have been selling off. what are they buying well, they're buying tech. since this moment has happened in mid-june with all the oil stocks notably down, all the big cap tech stocks like apple,

nvidia, amd are notably up it's growth over value, energy tends to be value, and less interest even in defensive names like consumer staples. as for today, this is really the last big day of earnings season, and the key story here is not nearly as bad as was feared two months ago with the big drop in june q2 numbers have been going up. q3 and q4 are slightly lower they were in the mid-8s a few weeks ago. now in the low 7s, possibly could go into the high 6s. but no earnings recession. we repeating this, carl, even in a mild recession, earnings go down 10% to 20%. the market at least now with the guy guidance we've got is not signaling any kind of recession like that. >> thank you, bob pisani look at "the bond report," speaking of recession their

indicators inversion now about 40 basis points, the most since 2000. we eat watch that. claims did come in 2.60 in line. and the jobs number tomorrow as jim said will have big implications for where the fed trajectory goes from here. back in a moment

we mentioned kellogg earlier with a beat on the top and bottom line raising full-year. that's a fresh high right there, 75. 4, the ceo will join us in the next hr.ou the dow is down 56 don't go away.

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with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. let's get to jim and stop trading. look, you want them to do a great job. everyone was using clorox wipes, but household was not good lifestyle was not good it was just not a great quarter. i feel terrible, because they have a lot of private label competent tips so i don't think a 3.3% yield is

going to get protected there i i this will it will lower. >> interesting on the heels of p & g. >> i have a bunch of people. i have don wood, and he's delivered amazing numbers. >> and then brad jacobs, he's a magician, and businesses are going gang busters for him. >> and rust up for tomorrow. >> it's big. i'm nothing away it's a big day we had a lot today i feel badly we didn't get to all of it. >> we did our beth we'll see you tonight, "mad money," 6:00 p.m we're back in a moment or an important event for their family. for them, it's the first and only time.

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find your relief in store or online. want an engaging website to boost your business? you're just a click away from five star fiverr talent. hundreds of freelancer skills like web design. head to fiverr.com today and get something started. good thursday morning. welcome to another hour of "squawk on the street. i'm here with seema mody david and morgan are off rear live at post 9. the bulls are laboring to maintain the rally coming off the yesterday.

oil below $90, definitely a head scratcher today, at $89.88. >> we are 30 minutes into the trading session here and the three big movers we are watching this hour. we're going to start with clorox shares are moving down about 3%. higher costs and more leading to a revenue miss then bookings holdings, the company reporting better than expected quarterly profit, but guidance is where investors are worried. they say travel disruptions cutting into growth. paramount also lower, despite a revenue boost from "top gun maverick" subs topping 43 million shares, fractionally higher here.

and alibaba. hi, eunice. >> reporter: covid testing sites like the one behind me weighed on alibaba's business in the quarter, but did ease up a bit in june. the revenues stagnated net revenue halved, a lot of that is because of the weekend consumption. of course, the economic uncertainty, people concerned about not having jobs. chairman daniel jong said the signs of recoveries since sfremts june, and has gradually improved still, alibaba has other challenges that was also reflected in the numbers. this is revenue that alibaba

derives from selling services to the merchants, really important to the business. it was down 10% year on year, as the company looked to fall more in line with what beijing wants. computing revenue, this is one of the fastest-growing areas of the business it was up 10%, but that's still slower than the previous two quarters, again because the regulation has been squeezing the industries, like online education. going forward, alibaba has a lot of other big question marks. exactly what's going to happen with its business listing in new york, now that it's added on the s.e.c.'s lists of companies that could potential -- the company has said the company was going to strive to make sure it was going to maintain that listing, and pursue a primary listing in hong kong.

guys >> eunice, i did notice this is the first quarter the company is not disclosing total active buyers, but revealing vip users, 25 million i'm cure why is what you make of that >> reporter: at this point i think alibaba will try to disclose information it believers will put its best foot forward. at this point, the fact that the revenues were flat, even though it beat expectations, still a big blow for alibaba who had been, quarter after quarter, really been seen as a company able to boost its numbers. u.n. else. thanks let's turn to walmart, announcing corporate layoffs about a week after slashing the outlook, amid concerns of excess inventory. courtney reagan has the story. >> good morning, seema walmart is the latest large

company to announce layoffs, the country's largest private employer that is confirmed to cnbc that comp layoffs are taking place, but at the same time walmart says it is hiring, creating new roles in part of the business that are growing, like supply chain, eh commerce, health and wellness. while walmart declined to confirm the exact number of employees impacted by the layoff, a source tells me it's around 200 jobs. it comes a little after a week when it slashed the forecast, after reporting stronger sales of food, but lower sales of the high are margin, more discretionary purchases like clothing, as it watches consumee shift patterns many retailers have yet to --

when they do, we'll get more information about the state of retail jobs, corporate appeared store, along with tomorrow's jobs report, of course the last government jobs report showed the entire sector showed -- and many jobs were revised upward stop again, those are store jobs, and the story today is about the corporate layoffs. the head count did fall by 99,000 to 1.52 million global employ joe and the cfo did cite attrition for the reduction in that number, but didn't really give further details. we have several downgrades, and they're all talking about execution, but then low inventories on the other do we get a clearer picture of that soon?

>> i sure hope we do, carl that's a ran le got point. kon kontoor also put up numbers today. so i think when we get the full results, we'll get a clear understanding of what's going on scotts miracle-gro had an sbp note say the problem was the retailers we sell to, they didn't want to take all of our norv torrie, so we came up shorter than we think we could have i think that was an interesting insight into how the retailers are being so careful with all the inventory because of the all the dislocation and congestion, which frankly we're still working through.

>> pretty incredible reporting thank you, courtney reagan the major averages coming off the big gains, but let's bring in mike santoli. interesting cautious from gold ban about, i don't floe if it's deplanned for equities or seasonality in september or something else. >> it seems like a hybrid. we've seen every one of them this year not last that much longer on go farther you have a down trend in the market, a fast fed tightening cycle. that'susually a pressure point on stocks in general, and of course, some kind of slowdown. i would argue against the idea this is a pure positions shock, people just got caught in a vacuum since the low in the market, you have oil prices down

gasoline prices were seen pushing it to the limits the bond yields are down the ten-year was a 3.3 or something. so loosening i think earnings is very telling at the lows. what was the prevailing thought? we've got to see 3400. people assume that earnings estimates were going to be precipitous think dropping it's just been slightly better than all of those assembled fears. that's why i think you have to be open-minded about, yeah, we could consolidate this rally, but going back to the lows is not a sure conclusion as well. >> nasdaq now 20%, it isn't sustainable. >> that's a great question it reflects something that tech

has reasserted itself as the quality, predictability trade. yields coming offer, you have this ability to have those companies at least rebuild some of that valuation premium that was lost i don't think that's the leadership i don't know that we'll be talking about. apple again is 7% of the s&p how much more can apple give you? >> it sounds like if i was a client saying i don't want to get burned on another bear market value like earlier in the year, you could make a case this one is different. >> i think there's attributes, and that's some of the momentum shown off the lows this idea that the fed is somewhere near neutral, it's august, we don't have another fed meeting undulate september

a lot can happen, but as much as they want to say we're still on the case, don't get get made of yourself they weren't telling you we'll be where we are right neo. i think there's reason to think at some point the market got a bit too negative, and you can still feed off that for a while. >> we'll see we'll see if retail follows. >> and the consumers expedia, and beyond meat, doordash, these are companies that have struggled to voice their paths. >> i think a lot of that is broken growth stories, and the better than feared dynamic is going to be everything a ton of charts look like a

relentless drop, and then this little hook higher, so burden of proof remains lie. >> a road map for the rest of the hour, including why a repopped in travel may not lead to better stock returns. what that means for a rebound. plus the first tv interview with the new ceo of cummins. we'll also get a check on the supply chain. and the owner of burger king and popeye's and ceo of kellogg's are with us. "squawk on the street" is just getting started. this... is the planning effect. this is how it feels to have a dedicated fidelity advisor

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i mean, can i have a bite? only from xfinity. nah. unbeatable internet. made to do anything so you can do anything. restaurant brand shares rallies this morning, the company's quarterly results boosted by stronger sales in burger king. joining us this morning, restaurant brands international ceo jose sill. great to see you. >> great to be here. thank you. >> can you talk about what's working there? >> we were excited about the overall performance, and 10s we were up 10% in terms the same-store sales really strong momentum we communicated in may in our next phase all focused on

accelerating growth. what's happening is we're seeing a shift in our business. we've got traditionally breakfast sandwiches with coffee, but shifting into p.m. foods. so we're seeing an acceleration of growth in our p.m.,day parts, lunch and dinner as well with amazing franchise owners who have done a terrific job of delivering consistently to our guests at bk, we're seeing some steady growth in the u.s. with plans to accelerate. so really strong in our core businesses, popeye's also saw

strong unit growth north of 8%, and really 25% same-storing sales, and then firehouse we're just getting started there, looking forward to sharing more as time goes on. >> do you think that is reflective of employment trends? why would that be hatching >> at tim's, the shift is by design we have a core business in breakfast that's been the strength we felt there was an opportunity to punch at our weight we were punch it is below our weight for lunch and dinner. we have 2700 drive-thrus in canada, which is 1,000 plus more than the nest competitor but didn't have much though

driving the lump and dinners we hired a top notch chef, beverage experts, and we moved forward tresly alongside or franchise owners to build a stronger menu and stronger offering to creates those occasions where people are liking for cravable food now at tim's we have it. >> jose, i'm curious if the decrease in gas is helping your consumers? >> it's clear these are challengic times for everyone, businesses are feeling it. it's hard to make too much of near-term ups and downs. inflation has been an impact interest rates going up, as they have over the last six months, also an impact for our consumers. it's hard to label what's happening now, but it's our job

to make the best decisions for our guests and continue to give them great value we focus on value for money. it's a core element. we focus quite a bit on pricing to make sure we address franchise profitability issues, and any back-door pricing increases we're are we're seeing from the supply side we work constantly to ensure we're doing that, managing the balance between what's happening with the consumer and what's happening with the commodities and inflation and what's happening with the competition. >> talk about pricing, chicken costs have come down, beef prices are still stubbornly high i'm curious what other places you are seek inflation >> we've soon several areas.

coffee, we've seen increases in shortening and oil, in addition to some of the proteins that you touched on we work closely with our franchisees, with our supply chain and we've got visibility into the future to ensure we use our scale to manage costs, and then manage costs on the consumer side as best we can >> finally, jose, you know, we've got listening to color commentary all week long there has been a mix in view about the lower-end consumer and consumers' willingness to trade down where do you come in on that. >> value for money is definitely top of mind for the consumer historically in times like this, we tend to see some trade down from the lower end consumer, but also some trade down into our

quick-serve category from folks that were frequenting either casual dining or other kind of full-service restaurants i think we're well positioned given or scale you are o. entry level price point, given the quarrel of the products we covered -- offered, and i think we're well positions, but we keep an eye on it carefully to make sure we don't get too far ahead on pricing and provided a balanced approach to kind of satisfy that indull gents that people are looking for >> jose great to have you on, as always jose cil >> thank you. dow currently down 97 point. after the break, we will chat with the ceo of cummins in her first tv interview after taking

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global industrial itf. the sector bucking the trend is cummins, about flat on the year, reporting results earlier this week ceo jennifer resumsey took over. saying increased uncertainly about the pace of growth in the global economy. >> for more, jennifer rumsey with her first interview here. day four on the job. welcome. >> thank you great to be with you it's been an exciting week for me. >> we were looking through your earnings reports interesting comments on supply changes, saying that supply chain concerns are easing, which is very different from caterpillar's ceo who couldn't

estimate when the concerns would dissipate. tell us what you're seeing. >> cummins reported record revenue in the second quarter, beating estimates, solid profitability despite what has been a challenging supply chain conditions, and we have been focused on working through the supply chain issues, to continue to meet what is a strong customer demand for most of our markets outside of china supply chain does continue to dominate, and we are seeing some improvement in some of those areas. electronics, microprocessors, continues to be our biggest concern, and we continue to talk regularly to our customers about how we're navigating supply chain issues and expect that to cap our revenue this year. >> you're at a fascinating

intersection of old school and new school this inflation reduction act, you've been working with the biden administration on it there's clear incentives, how will it fact your bottom line? >> we very pleased to say progress, and we think it's really positive. cummins serves some of the most demanding vital application. those customers are running businesses it's important to decarbonize our industry to do that, with he need investment in the infrastructure, and also to drive adoption of these low and zero carbon solutions. the inflation reduction act has key provisions building much the

infrastructure and also continues adoption of these technology that is we think is critical to enable our customers to transition to the new technologies. >> jennifer, the china continue to say confrowned investors. can you talk about what truck demand, for example, might tell us about their intention for this half, but all of next year? >> yeah, china has been a challenging market since a missions changeover in the truck market middle of last year we have seen that market drop off. china is a big economy and an important market our products are well position ed we're continues to watch how

that evolves. >> >> we're starting to see more industrials spin off the newer investments, whether it's 3m spinning off health care, ge breaking up into three is that a strategy you will pursue to unlock shareholder value? >> right now our destination zero streej is an over-arching strategy for cummins it has of has start today, which is reducie ing co 2 and also accelerating these technologies that can get us to zero we believe we're well positioned to do both and help our customers navigate this change we're going to generate cash and use that to invest in traditional and new products, and we think with this slow transition that will vary across

our markets, have been that over-arching strategy is an important part of what makes it successful. >> lastly. scarcity of semiconductors, we have this chips act, but some people are losing optimism, it it will take years before we have foundries. >> we're really happy to see we finally did get approval for that, including an investment in legacy chips, this is important for our industry it is a lodge supply chain that takes big investment and a lot of time. we've been actively working to make sure we have suppliers that can meet our needs while we invest in that change. that is still critical and will take time, as you said. >> certainly jennifer, one of the few ceos of

an industrial company. thank you. >> thanks, seema thanks, carl >> don't misshe t ceo kellogg this morning more "squawk on the street" continues in a moment. ♪ ♪ 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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welcome back for "squawk on the street." i'm jon fortt. here's your update at this hour. russian prosecutor are asking the court to give brittney griner 9 1/2 years in prison when she's sentenced this

morning. wnba player faces a maximum sentence of ten years after pleading guilty last month for having vape canisters with cannabis in her luggage. there are efforts for peter in a valvo to hand over the e-mail from a personal account. the new proposed wool radio require refunds if the departure or arrival time changes by three hours or more, or at least six hours for an international trip. >> jon, thanks very much investors are closely watching the fed, of course for signs of the next fed hike

steve liesman has a look at that gap in thinking today, steve >> carl, investors as they say in britain, to mind of gap several fed officials insisting the market has it wrong. bullard saying he expects the fed to be higher for longer, and cash k-- kashkari saying yesterday -- some financial markets are indicating they need to cut interest rates next years. i don't want to say that's imbalance, but i would say that's a unlikely scenario here's the issue right here. both markets and the fed are pretty much in line for this year with 100 basis points, but

next year, the market has cuts priced in. obviously the economy and especially inflation will determine who's got this right a full-blown recession could create those -- and then again a recession with still high inflation that's a quandary for the fed. it means rates might not come down since the -- it's tended to overestimate rates in the first year, it projected 2016 rates at 140, and ended at 0.24 the past two years, they have a better track records record. this time could be different no one really cared back then that inflation came in below the 2% inflation target. people care a lot now that it's running well above it, so the likelihood i think is the fed ends up on the high side either way, investors need to

mind the gap >> mind the gap. that reminds me of my days in london we're awaiting tomorrow's jobs report. >> it steam normalizing. it shows softening out there, but not yet at an alarming rate. you could look at things like delinquency rates. they're rising, but still well below normal maybe we get the consensus 250,000, which is still strong, maybe it's the last strong one we get some of the softening we're hearing from companies about layoffs, hiring freezes, and then as you know, seema, there's still tremendous demand from labor in certain sectors, and also beloy the levels that seemed to be needed now, given

the demand. >> travel/hospitality, a huge rebound there. thank you, steve losses are accelerating here after this rebound in travel we're going to talk about what's going on with bookings holdings. it's down about 6% ♪ ♪ ♪ ♪

with the state of consumer in focus, let's talk about travel bookings has an optimistic outlook. unlike airbnb, which saw softness in may and june, booking holdings does not, though it did guide lower for the third quarter. the ceo doesn't see travelers trading down on travel here's what he told "squawk box"

earlier today. >> we look alternate are people going for a lower-star hotel we didn't see that instead of seven days, six days, reducing the length of stay. we're not seeing that, either. there's times when economies go down, people start pulling back, et cetera. >> we now turn to expedia, which reports results tonight. there is this perception on the street, carl, it is losing market share to booking holdings, when you ask the ceo, he said we're going after the markets where we win he will join us first on cnbc tomorrow following the results i heard you talking about may, and june, a little soft, the question is july are the prices holding up? >> i wasn't clear on the back of

what airbnb said, whether or not this room night is -- is that reg lay seasonality? >> i would add to that discussion what marriott told us earlier this week, 70% to 80% average hotel occupancy in the big cities we have nod seen that since pre-pandemic now people want to return to cities, it's helping hotels >> there's more to do, right >> yes broadway, parks. >> exactly entire state building is one of the biggest tour ist sites in te country right now, which we appreciate. why morgan stanley is say it may be time once again to bet on apple. down a buck and change the to be is nearly 30% off the lows. more on coin today, surging

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shares of kellogg in a new high today, the company raises

guidance for the rest of the year, citing confidence in its ability to manage through ongoing supply and cost challenges joining us thunderstorm, the kellogg ceo and chairman good to have you back. i think back to the time when we were asking what will it take to rescue the cereal category, but now all everyone wants to talk about is the rebound. >> it's quite a rebound. in the way the category has done, it's up mid single digits. the last quarter it was up high single digits. last four weeks up double digits i think it speaks to the versatility as a meal, affordability. you can have a bowl of special k with berries and a glass of milk for about a dollar we're very pleased about that.

>> we've been watching some of the futures on oats and wheat, soybeans oats are down four out of five weeks. is it reasonable to think about it as commodity costs are coming in, but it's the bottleneck pain that remains. >> it's the bottleneck pain surely remains it hasn't gotten better. it's stopped getting worse, but that still remains a challenge for us in terms of the commodity prices they are down, but off historic highs. on a year-over-year basis it's still an inflationary environment. it's going to remain a challenge and obviously will remain a challenge to make sure we work on productivity plans and overall we make sure to continue to provide foods that are affordable for strapped budgets. >> does that mean you continue to take some price here or are we getting into a period of

share battles and losing to private label, so forth? >> i think when you look at private label, it hasn't made necessary meaningful differences in our categories. we are very mindful of the gap and mindful of affordability productivity can only give so much we're still seeing the record high year-over-year input costs. we don't see a break on the horizon yet, so i think it will be a continuation of what we are seeing and, you know, as hard as we work to mitigate it, right now the inflationary environment is still real and pervasive. >> you're raising your guidance for 2022, what gives you so much confidence right now, steve? we're obviously reacting to what we heard from walmart cutting 200 jobs and slashing the outlook last week. >> we've been for years

investing in our brands. we have strong brands. the confidence weft is around the world, the united states and our international regions, our growth is led by terrific performance. pringles is up double digits the world, rice crispies treats. these are brands we invested in with strong consumer connections. in an environment like we see today people want affordable luxuries, people don't want to deprive themselves of things they love that are affordable. cereal is versatile and affordable, so we're the beneficiary of having great brands we invested in that are very affordable and are comfort in times of -- you know, times of challenge >> the price sensitivity and the uneasiness of the consumer, steve, how does it compare in europe right now to north america? >> it is a little bit more acute in europe right now,

particularly in continental europe so we are seeing a little bit more of a return to historical elasticities as prices go up, volume comes down we're not seeing that in north america. we're not seeing that in the rest of our international businesses the one area where it has returned, not quite to normal levels yet but is approaching it is continental europe. it is really not a surprise because if you look at continental europe historically, you know, nobody has seen this type of inflation for decades, many decades, but for a long time continental europe was more of a deflationary environment. it is quite a jarring effect when they see the type of inflation they are seeing today. >> you are clearly an international brand. you go to india, everyone is eating kellogg's cereal. i'm curious as the fx headwinds exist, does it make the sales from emerging markets less meaningful to your bottom line >> i won't say they're less meaningful at all, but we clearly have a translation impact when we bring those

foreign currencies back into the u.s. so that's a bit of a headwind, but despite that, you know, we raised guidance and it is one of the head wiwinds that we're fac is obviously you have the euro, you have the pound, you have international currencies which actually have held up better, developing market currencies have held up better than the euro and the pound it is something that in the back half of the year will affect any company with an international footprint. >> we haven't really talked about the planned split yet between snacking cereals and plant, but the challenges that you are talking about, whether it is input costs or bottlenecks or so forth, are they more acute in either one of those three areas? >> carl, they're really not. i mean when i say inflation is pervasive, it really is across just about every input cost that we have. it is moving around a lot. so if you are in packaged foods, you know, you are talking about high -- you know, very high teens inflation, and we're

seeing that across our plant-based business, across our snacking business and across our cereal business almost in equal measure. >> finally, you know, consumer packaged goods get a lot of grief for i think they call it shrink-flation now prices may same the same or stable but you independ up with tiny bit less. we had pepsi-co and they argued it has been going on for 50 years. would you agree? >> it has been going on for a long time. our objective is not to engage in that. what we try to do is make our products more affordable if we make it smaller, we also make it cheaper. so the magic price points for, again, affordable luxuries, if something is $1.50, we might make it $a1 and take it down in size as well so the cash-strapped household budget can afford the luxuries.

we think about the absolute cost, not necessarily working a margin play by shrinking the package and keeping the price the same >> you definitely got some fascinating currents running through the business, steve. shares reflecting a decent quarter obviously as we mentioned earlier, new highs today. good to have you with us as always thanks >> great thank you, guys coming up, sports betting is on the path to profitability could it mean the end of promotions for users that's next. we're back in two. 're in a screen saver. (man 2) yeah, but we need to go higher. (man 1) higher. (man 2) definitely higher. (man 1) we're like yodeling high. [yodeling] yo-de-le-he... (man 2) hey, no. uh-uh, don't do that. (man 1) we should go even higher! (man 2) yeah, let's do it. (both) woah! (man 2) i'm good. (man 1) me, too. (man 2) mm-hm. (vo) adventure has a new look. (man 1) let's go lower. (man 2) lower, that sounds good. (vo) discover more in the all-new subaru outback wilderness. love. it's what makes subaru, subaru.

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let's get a market check we are off the lows of the session. the dow currently down about 48 points energy, the worst performing sector although still the best performing sector year-to-date, up 34% as we watch oil break below $90 a barrel energy stocks are trading down financials, tech also trading down on the day ahead of tomorrow's jobs report ten-year yield at 2.6% companies have spent millions to promote sports betting and it looks like it could be paying off. we have contessa brewer on the

path to sports betting hi >> pen and valley just reported this morning mgm and caesars earlier this week and the picture emerging is the operators are intent on demonstrating that they do have a path to profitability. now, to be clear, the companies report digital results so you have online casino games wrapped up with online sports betting. well, penn ceo jay snowden wrapped up his earnings call last hour. he said it would be profitable by the fourth quarter and is pretty much there in the united states, but opening new markets is expensive and can expect new sports betting in kansas, ohio, maryland and massachusetts that state just authorized sports betting caesars ceo tom reeg says his digital business nearly broke even in july that was a stunning statement. his thesis has been you go in and spend big on marketing to win customers and really pull

back on the spending to that point he warned advertising and promotional expenses will increase when football kicks off next month. mgm is a 50/50 co-owner of betmgm it has been grabbing market share in the second quarter. 2 21% in may it is clear leader on i-gaming side with 29% market share we continue to watch how mgm performs, up 3% because they had astonishing las vegas accounts draft kings announces tomorrow they have been exorbitant in past quarters. will it be reined in somewhat. penn and caesars highlight the technology on their platform it is super important that the platforms are easy to use and say they don't crash during the super bowl then we saw focus on payments, the ease of deposits and withdrawals. that's one way tech has been really important here, seema,

for the sports betting operators. >> yeah, those are important names to watch, especially as we try to understand the health of the consumer you have retail, casinos, travel, very different stories depending on which ceo you are talking to in each respective sector contessa, good to see you. thank you for joining us contessa brewer the dow is currently down about 57 points. that will do it for us on "squawk on the street. "techcheck" starts right now ♪ good thursday morning. welcome to "tech check." i'm carl quintanilla with jon fortt today. we are up 30 plus, market up currently 18 that market is on pace for the best since the ipo then results from baba, booking, ebay, what they tell us about the current macro environment. later on, service now and equinix. a busy hour, jon >>