getting to the line. banks are expected to take a hit. speaking of fixed income, tomorrow you're not going to want to miss an exclusive in with richmond fed president tom barkin that's going to be at 10:00 a.m. that ends it for us with "squawk on the street. time to send it over to "techcheck." good thrs morning. welcome to tech check. i'm deirdre bosa ahead of a big interview you do not want to miss with ceo bob chapek stock is up after those results, and don't forgot about the editor in chief to break down all of today's biggest movers, all moving sharply talking about the american consumer.

inflation data coming in the nasdaq up 0.8% you. julia, how can we not start with disney we've thought about streaming for so long as a technology play growth at any cost feels more like a media play. you've got to have your eye on profitability. that's certainly what we saw with the price hikes from disney and a lot of the commentary there. >> that's right. disney on the top line adding more subscribers than expected they did loose more than anticipated when it came to the direct to consumer business. the way they're addressing that, they're raising prices and this all fits in to the new profitability. morgan stanley said this is phase two, bringing the streaming into the profitable era, and i think we're hearing this from a number of different ceos

we also heard this echoed by david zazoff as well now it's being valued more like a media company. it seems like all of these companies including disney are thinking more practically about their streaming businesses and wanting to make sure it's not just about chasing growth but profitability. >> i completely agree. i think the combination of the growth we saw with the price hikes speaks to disney's underlying content season three of ""bluie" came ot yesterday. they've got that catalog they're adding those shows that product is incredibly sticky for families. >> i've not watched it, but i'm considering a trip down to where julia is the prices are insane. i'm going to test it out and how

much pricing power theme parks have i wonder julia, it's ironic that disney is now focusing on profitability when the tech trade is now coming back around look it got disney to where it is right now, total numbers surprising that of netflix in terms of subscribers is it too early when you give up those prices, does that set up disney on a different path, you know, longer term. >> i think we're seeing a sort of readjustment about how disney cease al sees all of this disney is building up its product. it started out intentionally they said it's not always go to be this expensive. we're going to be raising the prices as we add more content, and we've seen them do that. when it comes to the sports rights, the expensive cricket rights, bob said they gave up the price because it wasn't

worth it in terms of the value, to be able to use it to draw and retain more of the customer hotstars that's something we'll talk about with him in the interview coming up, because we want to understand his perspective on how much he's going to be willing to pay as he focuses on profitability in a way we haven't heard disney or any of these streamers be that focused on profitability for the direct to consumer business >> there's so much to get to obviously a lot of focus there people are spending and the disney brand feels so powerful, especially when you look at what happened at six flags. people are going to pay for a disney where they're not going to to pay for other theme parks, as much as i'd like to because it's a lot cheaper. >> there's rumble over the park's experience. that's what's going on

that's what disney has to manage they have supply chain issues. they've got to make sure consumers are getting what they pay for for those higher prices. i think that's the big danger on the horizon for the sparts the other thing about sports real quick, there's a massive reaplienlt all over the place. they've been all over it i think they're in a much better place. >> eli, back to the parks, it's notable they have rolled out so many price increases over the past several years and now you see continue supers spending more yes, the overall attendance may not be back to the 2019 levels, but there was a hint or two dropped that they think they have pricing flexibility for the parks. do they think they can raise prices even more that's an interesting question. >> we're going to take a deeper dive into disney and today's

overall inflation data let's bring in wilmington trust megan shoe megan, what did you make of disney what is it that's a big name in the business the parks business, pre and post pandemic, what did you make of it >> i think what disney showed during earnings is that companies that have that brand power, the pricing power, can continue to pass along price increases, and this really kind of epitomizes one of the concerns we have, you know, no withstanding the improvement in the inflation data companies like disney, like starbucks, chipotle, the number of companies we heard who we think still have pricing power could be willing to pass it through. some of that core inflation could be stickier as we move into the balance of the year they still have a good balance

sheet relatively speaking. we have seen consumers taking on more credit, but disney has that brand power. >> maybe because of the brand power disney is an anomaly we look at some of the other earnings demand pullback is being seat with some of these results i wonder how much you could actually read into the broader markets. megan, where do you think we are right now. nasdaq is in a new bull market. >> what we saw was a sharp move in rates then we started to move into questioning demand and earnings. second quarter earnings showed the demand is still there. earnings are still solid but we're a little cautious. we're not sort of fighting the rally in the market. the technical a strong we're not buying, we're not

selling. we're fully invested gong forward we need to be sensitive to how rapidly the environment is changing. we heard from micron and walmart and target earlier in the year, and we're going to be getting retail next week from an earnings some weeks i saw the consumer side bear. i would say don't chase this rally. be patient >> megan, as we look at the bigger picture with so much economic uncertainty, i'm curious what you saw sonos is so disappointed people have already invested in devices for their home there's only so much they're going to spend and that was pulled forward toward the pandemic if you look at netflix, what we heard from them, and the fact

that their disney plus subscribers -- you do think they have seen a pull forward and that means as inflation increases or persists, we'll continue to see things grow? >> definitenyly we've seen things pulling forward in terms of electronics, pcs. the chip guidance and some of the earnings from the semi-conductor companies going forward i would be focused on as it relates to tech those companies that are more aligned toward cloud growth, data centers, construction trends, auto is another example, and being more cautious as it relates to consumer electronics. we had a big pull forward. it's helping disney and their earnings, but, you know, we should expect goods to remain a little bit softer except maybe

if you're geared toward that enterprise type of business. >> yeah. it's interesting we're seeing this divergence between the consumer and enterprise we heard that from iec and then convergence within the consumer and the ability to hold up better as you look to the fall, are there any issues around supply chain constraints? you mentioned auto the infrastructure issues. what's your outlook on that now? >> the semi-conductor supply chain has been a slow go in terms of improvement we've certainly seen pretty dramatic improvingments in other parts of the supply chachblt i would expect we'll don't to be a bit of a constraint even with a tight market and strong payroll

numbers. we're hearing companies are having trouble hiring. so there could be stickiness to the supply chain issues and then there's covid. so we're cautiously optimistic that the supply chains will resolve for tech and semi-conductors. it might take a little longer, but we think that's going to continue to improve. >> i want to talk about cars they're not shipping for ever and consumers are having to wait, wait, way. the $100,000 car is getting to be the normal reality. do you think those cars are going to be able to deal with the supply shock. >> when it comes to all toes, we definitely have a lot of pent up demand still and what's being gone on with the sales members

for autos has been more on a supply chain what's driving up the cost is a lot of the tech intensity that goes into the autos. so, again, structure that goes into the experience than ten years ago. certainly we've seen price relief after really, really strong price increases in the past few months. but going forward, i think if you're at the top end as julia mentioned, there's a bifurcation in the consumer. high end consumer products are likely to remain strong, and yet they're going to take on more. >> thank you so much we'll talk to you again soon. >> thank you. we'll have more on the other

tech results you may have died this is his first broad street interview. stay with us t"techcheck" is just getting started. >> announcer: took czech is sponsored by comcast business, powering possibilities

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let's get a gut check on vacasa they raised their full year guidance thanking to increasing estimates. those shares up nearly 26%, this after strong concerns from competitors. airbnb, booking holdings, and expedia as well. it seems like consumers are nowhere in sight when it comes to travel. >> the performance from some of these travel names especially last month have been incredible. airbnb up nearly 30% it's valued much higher than some of the others like booking holdings and expedia

vacasa, huge move up it feels like the market is saying what the fed will be able to do is jengineer a soft landing. >> it seems like the cash is going toward experiences instead of products, which we saw for the last two years i also think a lot of people moved out of the city during the pandemic and are now moving back. >> that's a good point you want to move to the country for a week the earnings movers is sonos shares after missing on the top and bottom leerngs blaming those results on, you guessed it, macro headwinds. guys, what a completely different picture here we talked about the consumer tech angle sew know has held up remarkably well now they're having a hard time where you really need your cfo

if your challenge is macro headwinds. >> let me cry for a minute i love sonos ceo patrick spence, chief legal officer, now acting cfo eddie lazarus, great executives, they're fighting a big lawsuit against google it keeps raising this is the on sit of the vacasa story. you buy a new tv, you almost always buy a sound bar now they're going to other people's houses. that's the big problem for s sonos. >> they probably benefits. you have the fact that vacasa introduced people to a new way to go on vacation during the pandemic, and now people do it

instead of going to hotels, plus all of that pent up demachbld i think we're creating a transition from being objects into experiences that's what we saw with disney parks. sonos is like, you can only buy so many of those devices >> we've had hints of this this, that the stuff people are buying are more oriented to services. the company has launched a search for a new one wells taking it to neutral, quote, decreased visibility goes fafrmtd this as marqeta is weighing it. joining us now to discuss it all. jason gardner. jason, let's start with the

change at the very top what you announced hand over the reins to someone you haven't driven yet. >> i'm an entrepreneur, gold medalist entrepreneur. i took this seriously. i feel there's a best person out there to be ceo. i've got the things that i can contribute the most of, people, product, and customers i'm not going anywhere the chairman, ceo, and the largest founder of the company i'm here forever and i'm absolutely committed to the company and i'm excited. >> we look forward to hearing about it ads well, jason when you look for a ceo, what are you looking for? we're in the current market with

a great eest emphasis on profitability and operate. would you be looking for like a seasonal executive or somebody in the area? >> there's a lot of great executives out there we decided we wanted to be completely transparent there's a lot of investments in banking, technology, software. we really thought this was the best way to do it versus operating in secret. we wanted to get ahead of it, attract people so we're being very open about the search it can take time as ceo, it could be six months, could be a year. very much looking forward to talking to a lot of folks out in the world and see who would be the best person for the next stage. >> jason, your disrupt ur market, a lot of your customers are also disrupters, are you

looking for someone who can bring you a more traditional one, maybe stabilize some of the company. >> our strategies work very well you're right we focus on common disrupters, din tall banks, tech giants, and financial institutions we built an amazing culture here have a strong executive team we want to attract someone who can take it to even greater heights and we'll be thoughtful about that surge as we think about it, it's who can take the company it's equal, products, commerce along with me in partnership with me and taking the customer to even greater heights. it just allows us to have open and wide conversations to attract the best person for the next phase. >> jason, when you thank you about your partners and you think about the next chapter of growth for the company, how important and how important is it so much of your revenue comes

through block, and i'm wondering if 69% of the revenue is from block and you need to focus on diversification? >> we do we've talked about this a lot of we've seen it go back down since last year. we're very proud of the first half results, cautious for the second half. we're like a zipper. both companies are tied together they're very successful. we look tosupport them while w focus on the large tech giants, financial institutions to not only diversify the revenue base but allow us to look at the vert verticals whether it's large tech giants or financial institutions we're excited about the relationship and what's next for us. >> no small job, jason we're looking forward to seeing

how that progresses. we appreciate it >> thanks so much. take it easy and live here at disney headquarters we will be joined by ceo bob chapek. that's next. don't go away.

welcome back to "techcheck." i'm deirdre bosa with julia boorstin and nilay patel it's still in the green. we have more on disney and bob chapek but first let's get an update with bertha coombs. >> thank you very much more evidence inflation is cooling. the index that's measuring wholesale fell half a percent in july compared to june.

it's the first month over month-drop since april of 2020 and while still high, the annual increase is the smatest we've seen since october lower energy prices have played a big role and today thaaa says gas is back below $4 for the first time in five months. warby parker cut its sales forecast for the year as it face as what the top executive calls an uncertain macroeconomic environmental. back over to you julia, deirdre >> thanks. drivenen in large part by resurgence in the company's parks business in an overall beat on disney plus. subscribers joining us now on a cnbc exclusive interview is

disney's ceo bob chapek. thanks for vug us on your beautiful campus. >> nice to see you glad to have you here. >> i want to start with streaming and the decision the raise prices and also introduce the new ad-supported disney plus at the same prices you're already talking. talk about it. >> we had a great quarter overall, not only streaming but the parking business as well we had a tremendous experience our parks business was extremely strong with a 40% increase people are coming and spending more and they're very happy guests but you're right our streaming business has been really phenomenal. again, amongst many fears, we've added 50 million households, 14.4 of those on disney plus i think we alleviated fears our

growth was slowing down. there's a big focus on profitability and we reaffirmed our guidance we're really proud about that. it speaks to the difference of walt disney company. it plays out specifically to your question about the ad tier and pricing. we want to be more accurate, reflecting the value that our consumer and viewer gets with disney plus by taking up the price. >> and you did add many more subscribers than expected in the quarter, but when it came to disney plus

that growth is slowing are you concerned with the fact that there's so much macroeconomic uncertainty that subscribers will not want to pay more if they don't want to watch adds >> so as we said yesterday in the call, we suspect that we believe we're going to see growth accelerate for domestic subs for disney plus in the next quarter. whether it's international growth, with ads, without ads, we're pretty bullish. >> are you concerned i know it seems like in the streaming landscape this is a relatively new thing to focus on profitability over growth. i'm wondering if you're concerning where growth is coming from now? >> they define them as of yesterday to try to distinguish them from the lower value hot stuff starts

whether it's toe mess tick or international, it's almost from an overall standpoint sort of indifferent. but we do see growth in domestic, and i think you'll see that next quarter. >> you said you thought growth would accelerate next quarter. it was very interesting that you separated out hot start. you also said hotstar was not going to be growing as fast as you anticipated and you talked about that was because you weren't willing to make the investment in certain cricket right. what is the value there and investment and content versus the number of subscribers you're going to be time add >> few the last several years, we used the hurdle we take it down to that level. whether it's nba, mlb, nfl, or

crick, it always comes down to we do a lot of analysis and look at where it helps our shareholders if it doesn't, we do not do the deal that was one case we did not do the deal. >> the cricket righting but what does the strategy mean going forward? what can we expect from you now that you have this new focus on streaming? >> we have great partnerships with all the leagues, and if we can get deal done, we'll do it go not, we won't do it. >> are you certained about the rights >> actually i'm not. the reason is i believe we have a unique proposition we can offer the leagues and it plays it we've got new mlb rights college games are coming up. we've done good lately i'm not worried. >> in light of all this, what

you're building in the streaming space, how concerned are you about cord cutting we've seen consistent, persistent cord cutting. what is this going to do to your business, and how does that impact when you're going bring some of that over from linear to the direct consumer? >> that's win of the key factors. as we've said in the past, take your foot off the dock and put it in the boat we have ""dancing with the stars."" we're moving some of it. as the market changing, we evolve with it we do watch it very carefully. we know where it's headed. we've got streaming and linear businesses which are kicking off so much cash direct to our consumer investment. >> i know you don't want to lose

the consumer businesses which are the bread and butter of your profitability and i'm wondering how concerned you are with the bundle >> we have such great assets, propositions, and bundles to some extent that the main factor in terms of how fast that bundle goes where it goes, when you've got espn, which as you know is the 500-pound guerrilla. we feel like we have some degree of control of that. >> that's going to be very interesting to watch one thing we haven't talked much about is your ad supported business how profitable will that ad support be compared to your ad-free disney plus and how valuable will they be? we heard them say the ads are

going to be very valuable. >> no one has the experience we do because we have the hulu experience one only has to look at the average per sub advertising that we get on hulu and think about what that could meet from a disney plus standpoint so we believe it will be no worse than neutral and it has possibilities. we're really the only folks that i think across the globe have a lot of history i think we're going to apply this now to disney plus and you'll see great results coming out of it. >> how concerned are you about annade recession

you know, we have a unique proposition. when the content is strong, everything else follows. we're bullish. >> the ad-supported streaming base is going to get more complicated. are you concerned about competition from netflix and others in the space. >> we always watch, but we don't dwell on it. we have a unique proposition and we think we're unique in the marketplace. we're ooh unique proposition. >> shifting gears to the parks business, better than expected results both in terms of spending and also in terms of attendance give us some insight into what you've seen with the consumer and whether or not that will hold up into the fall. >> we're not seeing any softening of our demand. we're really, really pleased

with i know there's been a lot. we see no softening of our demand and we think this bodes well remember, our lead time for internation. so the numbers that we're posting are largely on our domestic audience. once that comes back, it will put more into our pipeline. >> about what the fact there are a lot of families going to your parks that didn't go through the last two years do you think next year you'll see a drop off >> we do not we've got enough data and research to suggest this is going to be a resilient trend we're seeing right now and is not going to be something that's

going to be. >> you said on the earnings call you think you have flexibility in price does that mean you're going to raise price at the it again? >> we read demand. if the demand goes up, we have the opportunity to do that we have no plans again, we operate with a surgical knife and we're at a level sophistication with our pricing so that not only does it maximize the shareholder value but enables us to provide things no matter what time people want to come. >> you get another pricing that could be in the works. >> we act accordingly.

if we don't see that, we can act chl we're very flexible. >> speak of flexibility, you've had flexibility with putting things on disney plus and in theaters whau now is it changing how you're thing about your that it condition we have, you nknow, a tremendous legacy of doing big numbers in theaters we're going put our big blockbusters through the theatrical system so we get the benefits and then quickly go to plus there will be a lot of means that direct throw disney plus. le we talked about our ability to toggle and that has been the

case for the last 2 1/2 years and that will be the case in the future. >> this is a complicated art, how much time they should be in theaters is there any concern with having them with ads is going to devalue the move going to experience >> we're all about the consumer, giving them more choice as to how they consume disney movies when the consumer is happy, everyone in the value. do you think it will hold up as it has, or because there's all of this, it mears problematic. >> as you know, i spent my first 20 years on the studio side. that's a really tin. i think the movie business is going to be stable

it's going to be resill yes, ma'am and optimistic. >> the final question. when do you plan to return it? >> that's important to us. we want to go ahead and deleverage as quickly as possible and we're working toward that. with our great results, it's gives us the results we're optimistic at some point returning to a dividend and looking to that, when it's upon. >> well, thank you so much for joig joining us. >> you've covered so much.

in the meantime take a plooc am. now trading almost higher than the street's average price target nooefrl 33 bus more after the break don't go away.

. time for a segment we're

going to call due diligence. ether dipped below a thousand bucks. since then it's up 92% you might have blinked and missed it. more than 75% in the last month alone including double digits. why the surge and why is it outpassing it's counterparts because of a giant merge scheduled to take place next month it has either and crypto bulls talking for at least a year this moment have a listen. >> right now it's eithee ether m it takes the manning ma utime t sell you look at the prices set on the margin and so i think that was the enthusiasm with this merge finally happening is going to continue to draw money into

ee theorem. >> what is going to change here? it's a combination of the work model and work product here's why it matters to you it will will lead ether to be me energy efficient and cause a sharp producing. that's why you're seeing ether surge this week. i know you spent a lot of time thinking about it too. sit too late to buy? this is going to be different. a momentous event. i'm in the i'll believe it when i see it if it happens, they'll get a lot more energy efficient. the big thing is if it happens, this is a cataclysm for nvidia

and a. all of that happens. it's abomb waiting to go off. >> and they have been seeing that effect, right yeah, absolutely. >> so you're saying with the ripple effects of that and ether shares up -- not shares, ether up 4%. jpmorgan out, heading into the fall calling amazon its best idea followed by uber and booker holdings all three of those names in past months we're back in two. >> announcer: cnbc crypto world is sponsored by crypto.com, the world's fastest growing platform is a journey for the curious traveler, one that many have yet to discover. exploring with viking brings you closer to the world,

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the s&p on pace for its worst yoear after a tough quarte for semis. some warning we're only seeing the beginning of more pain kristina partsinevelos is live from one of their facilities with more on the slowdown. >> reporter: chip sectors are facing a crossroad you have a slowdown in demand but at the same time chip companies across the board are making promises to spend billions of dollars on u.s. soil to build factories that's why i came to onsemi here in new hampshire they have a ribbon-cutting ceremony later this afternoon. across the board chip makers are warning and giving weaker outlooks companies like western digital as well as qualcomm, their stock is dropping at least 4% since those weaker outlooks. you mentioned the smh which is

on pace for its worst year since 2008 no doubt companies are facing tough times. the slowdown is sharper than expected they have to build up capacity here in the united states. you have companies across the board that are promising to spend billions of dollars here in the u.s., and unfortunately the subsidies, the c.h.i.p.s. act subsidies are only supposed to cover 30% of the founding recosts which are between $10 and $20 billion. where is the rest of the money coming from? you may think they ought to 50 and focus on auto and industrials and cloud, but even those segments are showing cracks we heard from micron's cfo saying within those three segments, there is an inventory correction you also had from cloud companies like snowflake saying there's weaker cloud spending and himax saying they are reducing orders because of a

sudden halt in demand. nonetheless, there is the disconnect between the short term and the long term prospect. >> i'll take it, kristina. thanks so much. as we head to our last break, keep an eye on apple today. it's 7% away from thatllim a-te high can "tech check" is back in a moment so for a limited time, comcast business is introducing small business savings. call now to get powerful internet for just 39 dollars a month. with no contract. and a money back guarantee. all on the largest, fastest reliable network. from the company that powers more businesses than anyone else. call and start saving today. comcast business. powering possibilities.

in three seconds, pam will decide... i'm moving closer to the grandkids! wait. i got to sell the house! don't wait, just sell directly to opendoor. easy as pie. piece of cake. whichever. when life's doors open, we'll handle the house. we are really the only folks that i think across the globe

have the opportunity to weigh on a lot of history and research and data that we've got because of our work on hulu and i think we'll apply that now to disney plus and i think you'll see great results coming out of it. >> that was disney's ceo bob chapek who joined us earlier this hour. disney plans to win the streaming wars as advertising tiers expand eli, curious for what this all means for the pressure on netflix as it gets ready to launch its ad-supported tier also how much do you think it will charge? >> netflix has to cut their price substantially if they're going to add ads to user experience they have to find a reason to get people to watch ads. disney has an easier lift because they're still focused on growth they can initiate new audiences into a product they're not familiar with. i'm sticking with the gluey

elasticity hypothesis. >> i don't even know what that is. >> it's a kids show. >> when your content is strong, everything else will t follow. we'll see if profits are the same the nasdaq hovering around the flat line. eli, thanks for your help today. "the halftime report" starts right now. thank you. i'm frank holland. welcome to "the halftime report." i'm in for scott wapner. stocks pushing higher again. the nasdaq up 20% from its june lows the s&p up 15% from its lows, even the small caps are posting big gains. the question today, is the rally for real or is it one big head fake we'll debate that and much more along with your next money move. shannon sacoccia, degas wright, josh brown stocks are higher after more data eases those fears