sports, and it helps the entire sector move forward and amazon move forward. >> michael, sara, want to thank both of you for being with us today. good to see you. >> thank you. >> thanks. hey, brian, thank you for being here too brian sullivan, my partner from a little ways away, but we made it work. great having you here today. thank you for everything folks, make sure you join us back here tomorrow. >> my pleasure. >> it's time for "squawk on the street." good tuesday morning welcome to "squawk on the street." i'm sara eisen here with jim cramer live from the new york stock exchange carl and david have the morning off. take a look at futures right now. remember, we had a big turn in the market yesterday, started off weak, got strong throughout the day. we'll see if that can happen today. down 68 points walmart's up about 4% in premarket. that's helping the tone overall. we're still down across the board. nasdaq futures down 40 our road map for the hour is going to start with the

retailers reporting. walmart and home depot both out with results we'll dig through the numbers. plus, we are whale watching from buffet to tepper, we'll break down the bets of what they sold and why. zoom shares falling after citi says sell. we'll begin with earnings from the two dow components walmart's results beating lowered wall street expectations after the retailer issued a profit warning u.s. comps rising 6.5%, including strength in grocery with e-commerce up double digits and reaffirming the second half guidance do not miss an interview with doug mcmillon with courtney reagan home depot posting earnings and revenue in q2 citing strong demand in home improvement projects but the company did see the number of transactions fall during the quarter, perhaps that's why the stock is down 1.5% inventories up 38%. >> we don't know how much inventory is because of higher inflation. but, yeah, there is a problem

here, and i happen to love the company very much, but they average ticket track 9% offsetting a 3% decline in transactions you want to see customer transactions up because that demonstrates the real demand these are both fine companies. home depot managed to thread the needle people thought they were going to miss. they have a good contractor business tomorrow is lowe's, they do a better do it yourself business walmart guided down and beat the guide down i think that this -- i'm not saying it's -- that it isn't a true beat. i am saying that you have to go into it to the point look forward to the interview, how much gasoline is coming down, how much is trade down people shopping there versus other places how much of it was a bad estimation with the new cfo john rainey from paypal. >> right. >> and that's questionable i'm not denying that it's good i am saying that when you beat the street after you've lowered twice, it's not as big an

achievement as people think. >> sure. good thing they beat, i guess. >> good point. >> target is out tomorrow with lowered expectations i was listening to the earnings call, doug mcmillon speaking, the new cfo was speaking they talked about how things are looking better toward the end of the quarter into right now back to school, for instance, they say is strong flannel shirts, doug was talking about, $12 shirts selling well, despite the softness they've seen in apparel and the fact that they have gained share in grocery where they continue to do the value for their customers, unlike other grocers. >> i think it's -- costco does better, you get better places to what's interesting is, you've got a belief in this country that food can only go up in price, and that that's one of the big problems of inflation. you have walmart, which is a true inflation fighter and you have private label at all the supermarkets you and i follow, which is again competitive to branded. anything against branded will lower price for the consumer

i don't think that either of these reports is anything that the fed should move on, but i like the fact that the consumer getting smarter and not taking the beating. that's what they've been doing. >> neither of these speak to recession. they're growing sales. >> exactly right. >> and while they're seeing a slowdown in some parts of the business, margins under pressure because of supply chain, it does feel like some of those aspects are getting better. >> yes. >> gas prices are coming down, fuel logistics easier. >> i think that the lower -- the lowering of gasoline is the delta, the biggest part of the economy that's changed oil can't catch a bid. to me the underlying story is that oil went to 115 in the second week of june because a lot of people felt that russia was going to be bottled up russia, instead, becomes a price cutter of oil exporters, kind of throws off all the models. we're dealing with that. some people have set up a false convict the reason it's going

down because of the strategic petroleum reserve, not true. >> china, europe. >> we have to talk about china there's a misperception about china. we tend to think that when china -- this happened yesterday morning -- when things are weak china is bad for us. that was the opening at 4:00 a.m. yesterday that's completely untrue it's a false dichotomy we don't care if china is weak because the government will bail out their economy. >> they did a recut. >> it's a totalitarian government and they can do whatever they want we don't want them bidding things up. we don't care that copper is down it's good. they use half the world's copper but we don't want them to bid up anything they won't be able to. why is that bad? tell me why it's bad that china is weak. >> they have a lot of multinational companies sell in china. >> three >> more than three >> look -- >> apple, nike. >> and starbucks. >> caterpillar. >> caterpillar -- oil is bigger than caterpillar to china.

>> you're saying -- >> there's three. >> not worried about the china slowdown. >> i'm rooting for the china slowdown. >> rooting for the china slowdown china bids up everything and i want -- i'm glad we are being tougher on solar because the chinese have destroyed industry after industry we don't want that anymore they're the -- we can cut back all we want -- >> it's a contrarian thing >> why not. >> we need to cut -- >> i think that there's a perception that china is our partner and that was done by multinationals to i think kind of bamboozle the people because we made this deal that working person gets lower prices in return for bigger profits for branded goods and i think that that was fine when china was a true trading partner, although they always try to get the better of us but now, china -- china flies over or semi attacks and plans attacks on taiwan, we send over the speaker of the house, we're not -- but we finance them you know, that's -- >> emerging markets will feel it there's a ripple effect from

china. >> but what about the u.s. >> the ripple effect we want the chinese to help us get the fed to stop. right? >> we want them -- >> on the side of deflation, not bidding aluminum up, steel up. >> it's my question about the u.s. as well because we've had some weaker economic data. u.s. fed manufacturing, today housing starts weaker. >> we need the housing companies to over build. that's typically what they do right now. they look at how low mortgage rates are, 3.5 three months ago, say wow, this is a great opportunity let's keep building houses and they didn't do that they showed discipline they're not playing ball doug yearley, leader -- >> stu miller at leonard, they're smart not going to do the wrong thing. we need deflation. it's not going to be in flannel shirts >> $12, he was saying. he bought two himself. >> he bought two himself. >> there you go. >> i learned that from the conference call. >> really? how many did john rainey buy

did he buy tank tops >> he didn't mention what he bought one thing i got out of the call is that inventories are still really messed up, for not just walmart and target but some of these other companies. did you see matt boss? i know you love to follow him, jpmorgan. >> on your show. you think i miss your show it's the most important hour of trading. >> thank you, jim. 65% of the nike inventories he said are in transit and they're coming in and the wrong season. >> versus costco which had its own fleet. look, i don't know how the judge -- we see foot locker, but they've been trying to -- foot locker because they went direct to consumer. nike is a quandary are they as well run as they used to be >> i think that the analysts will tell you yes, and they've been impressed and like donahoe's pivot farther into digital and the metaverse. >> didn't the stock go higher than lower >> susceptible to makts cro

issues china, both for production and demand. >> every day someone says apple is being hurt on the service revenue because of china there is a lot of game revenue i continue to believe if you think that apple is levered to chinese gaming you kind of miss the point of a guy by the name of tim cook who happens to be an excellent ceo. >> we will talk about apple later because getting a little stricter on their back-to-work policies. >> well -- >> bringing corporate back to work on retail and the consumer, we're going to get lowe's and target. >> right. >> do these results signal anything for some of the other that are coming? >> look, i think that lowe's is more do it yourself, but there's no doubt about marvin ellison is doing a great job. i believe that ryan cornell. >> target. >> took the hard charge. cleared the inventory. the stores are now levered to -- which is on fire cbs on fire. ulta doing well. especially now that we've seen

other -- an order this week. >> right. >> will they buy tom ford? >> that will be expensive. >> it's a good brand >> why do we have to wait. >> beauty. good perfumes as well. billionaire investors highlighting moves through the regulatory filings 13-fs warren buffet buying up more apple, amazon, activision and chevron, tripling the stake in allied financial, more than a billion dollar stake exiting verizon. >> smart. >> apple management cutting positions in amazon, alphabet, micron and microsoft kind of follows some derisking we have seen from the big players around technology in particular. >> which has been wrong for the last four weeks. >> yes growth has out performed. >> if you're a billionaire you can't be wrong you have to be right. >> we don't necessarily see the full exposure. >> no. they traded out. they could have traded out. >> they could have -- >> the three arrow, great piece

in the "new york" magazine i look at dave tepper's piece his moves and i say he may have reversed already he's very difficult to track down. maybe he's been buying the banks which have been a fantastic performer so far. >> kind of quietly especially with the lower interest rates. >> unbelievably quiet. >> 10-year down every day. >> not unlike 1990 to the 1992 period where alan greenspan, fed chair, decided to end the crisis so it didn't go further decided to raise the short rates to liquidity the bank's balance sheets this is what we have it's time to be bank of america and charlie sharp. my travel trust owns that. wells fargo. there's going to be -- remember the sanctions were put on five years ago february, so maybe if he gets the sanctions lifted he has to do a lot of different things. >> it does feel like this is all predicated on the fed pausing. >> right. >> easing. which is becoming a very big bet in the market and that's not

what we're hearing from the fed. it's not. >> we want the fed to come back and put the hammer to -- we don't want them -- if you're a bull you don't want them to let up think about it, they did three quarters and said pause, but we'll do another the market has a rally so i think the market very much wants to see discipline in the fed. and how about the flajs what else did he buy? >> that's what i heard about is the flannels >> doug is granular and appreciate his information i appreciate two -- two charges to get it so that the -- >> we have to go we've got data coming and industrial production still to come an exclusive interview with doug mcmillon at the top of the next hour cramer's mad dash as we count down to the opening bell take a look at futures 62 points lower on the dow nasdaq down almost 40. more "squawk on the stre" en ce ghba. etwh

welcome back to "squawk on the street." rick santelli with more breaking news we are expecting our july read on industrial production and capacity ultslization. expecting a number up 0.3 on production and do remember, on utilization rates, april, we were up at 8.42. that was the best in 14 years and it's hitting the wires up 0.6% on industrial production twice what we were expecting, up 0.6 is the best number since april when it was up 0.77. on utilization rates about as

expected, 80.3 80.3 that's sequentially following 80.0 until it's revised. anything above 80 is pretty good that makes it four in a row above 80% and that is something good at this point, especially on the goods side. we know services are starting to ramp up, but it is something to pay -- revision. i spoke too soon 79.9 0.1 below 80 quk t as our june read. "sawonhe street" will return after a short break.

when hurting feet make you want to stop, it's dr. scholl's time. our custom fit orthotics use foot mapping technology to give you personalized support, for all-day pain relief. find your relief in store or online. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

dash as we count you down to the opening bell another 23% move up yesterday on

bed, bath & beyond and got a downgrade today. >> yes wasn't really subsative but you have to wonder whether this com company, which is challenged -- because of a buyback, not just because of a market not doing a good job on this running the company, former chief merchant from target, no tool, but what's important this is a meme stock so, therefore, it loses any sort of grounding on what it's worth. 48% of it is short tell me who would stay short given that inflation -- >> after this week, i don't know. >> -- and then -- >> up 63%. >> -- we heard ryan comb was buying out of the money calls. if you want to trap shorts what you do is you go in and do exactly that how do you hedge if you're short those calls, how do you hedge that? you go buy and you're caught it's a brilliant strategy. it's clear this is well

orchestrated check the wall street bets -- okay not a fan of mine but lot of people are not fans of mine, doesn't bother me -- >> they're not a fan of fundamental analysis >> why has the company issued -- >> put out 20 -- they should issue 20 million shares. it would make it so their credit line, i would feel better about it, give time to sell, buy buy baby, which was the plan remember they did -- >> excellent store. >> the way you want to look at this it's jc penney they tried to do a major change. the public didn't eat it they had to do it because the thing was falling. while at the same time buying back a ton of stock. that was ill-advised now, they should call a board meeting and issue stock, which would then, of course, unfortunately, the short squeeze and the wall street bets would

blame me as if she's my puppet not true. >> what gamestop did and amc did. took advantage of the situation. the fact that we are seeing the meme return, the fact that bed, bath & beyond is up more than 60%, does that signal something about the market is it getting frothy >> so people -- >> sentiment wise? >> my problem with that conclusion is that these people pick a stock, they pick this one before, and they operate on it and we can't draw any conclusion about them because they're genuine outliers in the system i don't think it's speculative what you did see in the last few weeks are a lot of not great companies that came public, putting in a nice round bottom that i see constantly. if you look at a auburns, warby parker, these are companies that were brand names that came public. >> cutting costs now >> exactly. >> thread up today. >> they're cutting costs they recognize they can't spend

endlessly and do secondaries you have that dead right >> so you're saying that's a sign that market is -- good things are happening >> yes they don't want everyone -- >> it's not just going you >> we have a bizarre -- i promise not to interrupt you again. my bad >> no. >> we have this bizarre thing where do we want bad news? do we want what happened with best buy last week and layoffs do we want bed, bath to be in trouble, so to speak the answer is what you're talking about during the break, we want a soft landing we also have the best employment in 40 years so theoretically if you lose your job, you're going to get another job i would like to know where the 100,000 people who left amazon did they get jobs? >> 3.5% unemployment. >> we're hiring 80,000 it takes a year and a half above college to get an account. we are causing -- the federal government is causing a lot of the what i regard as being incredible employment picture. >> industrial production coming in double expectations >> double. >> and your question was is it too hot or soft landing?

i think that's something the fed is struggling to figure out -- >> jay powell -- >> -- because they want the line between inflation and growth. >> exactly want people to get jobs, keep good jobs, not have to pay high taxes and go -- have lower prices at the pump and walmart. >> yes. >> and - >> soft landing -- >> providing we get housing down and rents are the sticking points rents haven't come down. >> food. >> we hope that walmart busts that or -- >> and wages too a lot of people think. we want people to have high wages but that has put the wage price spiral story into effect. >> dutch, in a seminole moment on "mad money" said the real issues with wages is job hop. >> job hop. >> people have the power. >> right >> power to the people. >> power to the workers. >> what do you think of that >> i think it's going to be stuff tougher for apple to bring back corporate three days a week. >> that same idea -- >> joe biden. >> trotsky

>> close kidding. opening bell just a few minutes away and then later, do not forget we've got an exclusive coming your way with walmart ceo doug mcmillon, his company's quarterly results boosting the stock about 4% premarket "squawk on the street" will be right back.

. the opening bell is brought to you by nuveen, a leader in income, alternative, and responsible investing. apple reportedly ramping up its return to office push according to the "financial times" ceo tim cook sent a companywide memo stating all employees at apple headquarters and nearby offices would be required to come into work three days a week beginning september 5th after labor day. cook saying the move would preserve the in-person collaboration that is so essential to our culture i'm sure a lot of other ceos are rooting for him this works because they want to bring a lot of their employees back to work. it's a tight labor market. >> right tight labor market and a lot of people have headquarters they don't want to be in, where it's very expensive, a lot of people can do retail, zoom downgrade would make it seem -- well actually, remote is so easy because of teams you know, sara, i think that this is one of those stories

where it depends on what you're doing. if it's software it's easily collaborative. if you're hardware you have to be there. >> the idea is the culture. >> exactly. >> that's why the bankers have been so adamant that people need to be back at work although, the latest new york city return to work stat is like 40%. >> yeah. i just think -- >> low. >> that's one of the reasons why you still can't get your arms around what's happening in the economy because as you can imagine f we're all going to go back to work and we don't need to go to williams-sonoma and get anything. >> sweetgreen quarter. people aren't back in their offices and not waiting in line to get salads during the lunch breaks >> sweetgreen has a bit of a line down here i didn't -- i didn't care for my sweetgreen last week. >> really? did you get the caesar salad >> we'll take it off line. >> the added crispy rice - >> three georgetown guys, i like georgetown, so i'm somewhat

partial to the companies but sweetgreen is one of the companies that blew up and had to cut costs blew up for people meaning just watching, they completely screwed it up. >> there's so many distortions right now post-covid even in the walmart call we heard there was a question on inventories and the perspective is key we were so lean last year, they said, so lean, we couldn't keep things on the shelves. we thesed to bulk up now we're seeing a change in consumer habits. it's hard to get a clear picture of demand. >> double order. these companies all double ordered in order to get what they needed and now caught long. that said, walmart i think can actually impact the stock market today in a positive way. it's a big cap company i do not think that home depot is going to be that down, but i'm not on the call. i need to know more. >> the call is going on right now, by the way. [ applause ] >> the knock against home depot, it was good comps, good guidance some of the buy side may have expected them to raise guidance on sales and then the

transactions, the fact that it was all driven by inflation and higher prices. >> shortfall ted doing a very, very good job -- [ applause ] >> i think home depot has been punished unfairly. they had a decent spring, but the weather was bad at the beginning. if you're selling home depot now, you really got to believe that fed is going to hit us and hit us walmart is safe because that's where people shop. >> the housing, we did get housing starts that were a lot worse than expected. the home builders ceo according to diana olick said we're in a housing recession. that is not feeling a soft landing, that part of the economy. >> home depot would say at this moment, you're capitalizing if you're buying -- not expands, but the value of your home has not gone down, it's a quandary how to value home depot. walmart is, you know, bang, bang we miss, we miss, they do a number, okay, now we finally

beat the number. i don't know food is very interesting. >> it was up in the inflation report. >> pennsylvania senate race on food >> i heard dr. oz is shopping for crew da ta. >> that's what they like in philly. >> $20 fetterman, his opponent, suggested it's not interesting you know what store dr. oz was doing that >> no. >> weg man's. >> even i knew that. >> dr. oz, who knows, i just bring it up he was talking about the high price of food and blamed it on biden >> year over year -- >> we're going to hear deere on friday deere will tell you supply chain. there is supply chain problems throughout the system. but i think that when you look at ukraine they are exporting? >> started exporting wheat. >> also what i'm hearing from the packaged food companies -- we had utz on yesterday -- the bulk of the pricing items, the pricing moves, which basically

means raising prices, shrinking packages has been done maybe they're looking at doing it more dealing with cost inflation, but the utz ceo said we made the pursing moves and not looking to do anything else unless the environment shifts. >> in the interview what they said, that is a spac, one of the few successful spacs, i was always surprised they were not eviscerated by frito lay they stayed nimble, made an acquisition. they're in a difficult six of the super market. >> they have the cheese balls which frito lay does not. >> one reason i didn't want them on "mad money" they always give us two things of cheese balls and my wife says look, stopped with the baconator -- let's hold off on that. >> i'm still waiting for my cheese balls the market is three positive sects. energy on top of yesterday. >> do you not find energy to be

a fact tu was trade. oil was down big the oil stocks did not go down prelude to be able to say wait a second, what's going on. the oil stocks, an amazing piece, talking about the brilliant strategy of devin how they're buying property, pioneer two and the discipline they're showing by paying -- >> you're saying energy stocks can go up if crude oil prices are going down not just devin i saw your interview last week that was good. >> you did >> of course. >> i already referenced -- a lot of mutual fandom. >> the market does not want to go down, something you said on the morning meeting yesterday. is that getting tired? it's been -- >> because it's -- >> fourth in a row. >> fifth week. the 20% bottom made a lot of these smart money people get short and thought it was going to be a prolonged downturn, down 20%. remember, rates 3.5 going to 4 oil at 115 going to 346.

we saw ridiculous projections. >> dollar surging. >> we have a situation where a lot of people caught short we don't he see from the 13 fs how short. >> sure. >> i think they're trying to bring the shorts in and have not been able to do so. >> you want to talk zoom video because got to sell today by citigroup from 99 to 91. better late than never, but i think that bottom line -- >> that's true. >> of the note was there's still more pressure from competition like teams. >> eric has to take some of that cash, the ceo, and deploy it in a way that can be complimentary to zoom and he's not buying. that's how peloton gets hurt you have peloton, you have zoom, these companies, doccusign, they had all this money that came in, clorox, and they failed to deploy it. >> because they didn't figure out that these tailwinds would not last >> could be a failure of

imagination, a recognition that you thought you had a superior product to teams but didn't matter because teams is embedded and you're going up against microsoft. but i think the zoom story is a -- insight venture capital in new york and i think that the culture is fabulous blus they're hardworking. but i think they need to diversify. i wanted them to do gambling stuff. it didn't -- >> you wanted zoom or your -- >> zoom to do gambling that's like me musing at the dinner table and he, of course, being the complete good honest guy, never said anything. i had no idea how zoom is doing from him i had it from wall street >> which is not great, the stock down 70% from the high. >> true. what does matter is i think that if they -- they can still redeploy not too late it's not too late. >> chevron is barely up. i'm sorry? >> oil up, staples higher.

>> salesforce did you see that piece this morning >> yes. >> on the dow stock. cutting price target. >> well on foreign exchange, right? >> exactly headwinds. headwinds. we should use that more. >> headwinds >> everything is headwinds but mark is back marc benioff is back doing -- >> did he ever go? >> he went to indonesia for a couple -- he went offline? he has brett taylor there. >> he was at twitter >> well, yes, there's into -- ceo of salesforce -- >> can you -- >> anything changed for salesforce in terms of the environment for i.t. spending? >> that's a great question workday got a price target cut too, software as a service company have been hurt the stocks, not the companies. they got to see how the companies are doing. we haven't touched on disney. >> let's touch on disney. >> so the bottom line on dan loeb, dan, i love you, is that these ideas have all been seen and kicked around. nothing new under the sun, dan loeb. >> you're not a fan of the espn

spinoff idea >> i think espn needs to -- it's kind of more symbiotic than he makes harder to pull out what can they pay for hulu, parent company of this network, we don't know. hulu, this they need to get. they don't have a good balance sheet and people keep forgetting >> you blame the deal for fox on that. >> pay $71 billion for something. maybe "avatar" does well it's embedded in the system. you don't know what true price if it were written down would be worth. i don't think $71 billion. murdochs had comcast versus and bob chapin ended up paying too much, true or false? >> bob chapek didn't do the deal. >> it was bob iger. >> true or false. >> it takes me a second. >> we can do multiple choice. >> disney is still down more than 20% this year. >> well -- >> it's turned they had a good quarter. it has chapek proven with the strategy >> i can't say who, a lot of

disparaging of bob chapek. excellent -- >> the florida issue was a debacle -- >> well, it -- nobody is perfect. that -- my kids were upset about that that's when you know when your 4-year-old is not really in that -- >> no. he's happy he caught a baseball at the mets game my 4-year-old loves disney there's no dispute there. >> a lot of 4-year-olds do that's a common perception you have there. >> i understand they have pricing power on disney plus because of my 4-year-old. >> that could be but more importantly n terms of what -- loeb wants to do is kind of shake things up on the board level. if you go over that board, it's an exceptionally good board. we don't know who he thinks should be shaken up. >> i know some of the board members. >> don't you think the people are good mary barra, amy chang joined us, mark parker. always a visionary i'm not -- i don't know -- now

some of these, romans very smart. katz, i've always been awe calvin mcdonald. >> recent -- >> how great is it -- >> he's executed really well. >> what are we going to do who are we going to get rid of here i just think that this board seems very good to me. francis desue sa. >> think of his proposal the espn proposal resonates because that's been a source of weakness and why they pivoted towards disney plus to begin with. >> cash flow >> leveraged though. >> when espn hit 100 million subscribers they thought it would go to 110, and it goes to 80 they have -- it's -- there is a way to be able to say this is not the right time i don't know what you need why don't you give the guy a chance. >> the board is giving him a chance and renewed him. >> why should they fire him?

the theme parks are doing extraordinarily well why should -- what's the bear case for this guy? what did he do >> i think the -- >> other than the florida gaffe. >> it's a credibility issue. the fact that stock has under performed. the streaming at an inflection point. it's not him we've seen that from netflix as well. >> he's an operator. do you want to bring a more creative person in as he's from -- >> there's no mention even in the third point of bob chapek replacing him. >> there. >> give us people you think you should bring in and which board members you don't like. >> disney said they welcome all investor dialog. >> that's a common theme. >> right. >> i think my travel trust owns it, really believe in it, believe in chapek, don't think chapek should be disparaged. welcome any collective discourse. they have kind of a meeting there today and from what i can tell, there are a lot of people who feel that the board is

actually very good and you're taking shots at very important, good people on that board and i don't think it's right i think that board is exceptional. >> how about snowflake let's move on. there is weakness here in technology which is interesting because the nasdaq is up 23% from that low we talked about in june snowflake, citigroup here, warning on some softness and some of their stories ahead of earnings >> right okay, so this is, we know, one of the toughest ceos we've got the flying dutchman here in frank. he's relentless. he has great business model. his book is pretty good. good way to learn about the cloud. here's what i say. he don't care. sluman doesn't care. kind of like marshal sam girard in "the fugitive" because he is building a company and he's got a stock -- >> cutting estimates by 6% ubs is warning of soft tone --

>> it's frank sluman bank with sluman if he misses the quarter, buy. sluman has a great business model. have you ever talked to sluman >> i don't think i've interviewed him. >> he's hilarious. between barry mccarthy and peloton and sluman, you have the two toughest ceos in the world. >> well -- >> don't be on the bad side of those guys. >> are you recommending peloton? >> no. he hasn't been able to prove himself. he will but not yet. >> the market liked the fact that they're cutting more. >> he takes no prisoners sluman is tnp too. take no prisoners. >> got it. >> under some pressure here on the tech side. service now, salesforce i guess it's not -- some of these -- >> just went over it twice like, will you let headwinds -- foreign exchange headwinds how many times does mcdermts have to come on and say business is fine for people to believe him? >> he said -- he didn't say that with you the first time. >> the first time was a little

bit revelatory he talked about headwinds. the software cohort right now is a dislike cohort. it is. people would rather own -- >> people started embracing it on the idea that the fed is going to caughpause and cut rat. >> we have to know the business -- >> it depends on who is running it and the specific story. >> yeah. >> yeah. >> excellent high five. consumer staples are top performing sector. walmart -- >> okay. you're big into this group into the consumer staples. why is clorox making a big comeback even though on the arm, you see it for sale all the time >> it got cheap, and it sold off hard that people aren't buying wipes as much anymore. >> pepsico has defense and growth with frito lay. >> great ceo >> the question is how defensive, though, do you want to be in this market which has been led by growth over the past

few weeks? >> the fact that you have growth, walmart up, that's -- >> big move bringing kroger higher. >> kroger is your guy. what do you think of kroger? >> kroger has been doing well. the food inflation story has actually worked for them as people are shopping more at home. >> don't you use their private labels it's very good. >> people have shifted into private label now. >> you think kroger is a great operator >> traded down. >> you like all of them, kroger, costco >> i think they're well run at this stage of the game you're seeing some companies make a comeback. take williams sew know more my barometer because laura is fabulous, you are seeing that stock go up and this is, again, people aren't -- think about tim cook it isn't like he says i'm going to have people come six days a week you need that office going it's time to go, i don't know, where do you want to go, continue with wayfair or west elm or rh. remember that. >> r.h., very expensive. >> are you a member of the club?

>> what club on the club, no. >> between the -- >> the restaurant? >> the club. yeah, i am on club you get discounts. >> a little bit better it's still very high priced. >> well, okay. >> i think. >> true. >> jim, we have to get to bob for a rundown on what's working, bob, as we look at the dow turned positive, s&p 500 under a little pressure. >> flat open but the up trend is intact the sectors a little bit of move in energy. jim is right oil at 89 people are loving oil down here because it enforces -- reinforces the idea inflation is moderating a little bit consumer staples, pepsi at a new high bunch of consumer staples not far from 52-week highs the banks are holding up the retail stocks are holding up walmart and home depot yes, the consumer is under some pressure from inflation and yes, they're under some margin pressure, but there is no apocalypse in the retail space walmart, home depot, take a look target is holding up

tjx. overall, if you want know what's going on in the stock market, the apocalypse has not materialized, it hasn't materialized in all three areas that's important for us. for inflation, we could say well, it's high, but it's moderating how about the consumer obviously, they've had a hit from inflation but the consumer is still pretty strong w what about earnings? earnings are lower, but not by much the market has changed look how the sentiment has changed in the last few months remember, april, may, and june, everyone was scared, intense fear, reduced risk, reduced exposure wait a minute, now we're in august it's changed now we're fomo, fear of missing out. more risk. short covering there's an additional component to the rally that could account for this last little leg up, for lack of a better word, i call it panic buying imagine you're a hedge fund and long short in april, usually 4 nrs cash suddenly panic, june 20% cash. wait a minute it's the third

quarter. the s&p is up 13%. because you are 20% in cash, your hedge fund is only up 10% you are under performing and as a result, you're being dragged back into the market despite the fact that the market is higher and more expensive and you're uncomfortable and you don't have a choice, katz not making you money and the rally is unusually broad. not just a few tech stocks consumer discretionary, technology, the small cap russell 2000 more than 20% lows. it's not just a few tech stocks. it's a broad rally big tech, well, that's come roaring back big tech was town down 25% in the second quarter look here, apple is 5% from a new high 5% from a new high texas instruments, microsoft, 16%. not bad considering we were talking about some kind of apocalypse a couple months ago now what's happening is everyone is complaining the market is expensive. yes, the market is expensive it's now a little more than 18

times forward earnings that's a big issue, but you know, sara and jim, you could talk about the market being expensive and say historically this is expensive but if you're a hedge fund and under performing on the quarter that's an academic discussion all you care about is your benchmark is up 15% or 13%, and sara, you're only up 10%, you want to talk about the market multiple and how you can get back to performing or out performing your bogey. that's the issue for a lot of people. >> the fomo, coming back as you said it. >> i like that. >> bob, thank you. before we head to break, time for the bond report take a look at how treasuries are faring selling with yields higher today. 2.85 your yield on the 10-year keep in mind the trend has been lower on yields. jim, you were talking about the low for the stock market in june the high for the bonds on the 10-year was 3.48 >> that's when everybody said they're going to 4 everybody was wrong. >> everybody was wrong

2.86, lower yields we'll be back on "squawk on the street."

taking another look at walmart, the big winner today after its edges this morning courtney reagan is on deck in be betonville, arkansas. >> the retailer's hometown, i'm getting ready to sit down with the ceo. we're going to talk about it all. you name it, we've got you reved. stay right here on "squawk on the street." we'll be right back. . sorry. nope. okay. fresh donuts - hot coffee! they deliver real time data and business forecasts when you need it. i think it was fine how it was. (air tool sound) to help you stay ahead of the curve...

or you could use workday. the finance, hr and planning system that helps cfos make better decisions faster. on the other hand, we had a great fourth quarter. for a accelerate your decision-making world. workday. for a changing world. in three seconds, janice will win a speedboat. bingo! i'm moving to the lake... gotta sell the house... ooh! that's a lot of work. ooh! don't worry. skip the hassels and sell directly to opendoor. bingo! when life's doors open, we'll handle the house.

with xfinity internet, you get advanced security that helps protect you at home and on the go. when life's doors open, you feel so safe, it's as if... i don't know... evander holyfield has your back. i wouldn't click on that. hey, thanks! we got a muffin for ed! all right! you don't need those calories. can we at least split it? nope. advanced security that helps protect your devices in and out of the home. i mean, can i have a bite? only from xfinity. nah. unbeatable internet. made to do anything so you can do anything.

jim, what's on mad tonight >> a company you know very well. >> and sonova? >> a gigantic winner >> and i have to tell you if you're -- sunnova is down badly

today, but the market is not done. >> would you still buy on the inflation reduction act catalyst >> no, i would not. >> john berger might convince you otherwise? >> i like tesla. >> yeah, because they get the credits. >> i think tesla is going to do well i think tesla is a great stock i've thought that for a long time. >> it's had a nice run off the lows. >> it sure has >> later today on "closing bell," we've got an interview with the c.o.o. of palantir. up next on "squawk on the street", a big interview, an exclusive with doug mcmillon keep it here

welcome to another hour of "squawk on the street. i'm melissa lee along with leslie picker.

we'll take a check on where we stand today. the s&p 500 and the nasdaq just fractionally lower >> here are three big movers were watching. zoom falling they see news hurdles to sustaining growth. they also believe other macro-related factors, cutting costs will weigh on results. you can see shares are down 6.6% right now. then home depot trading in a tight range, moving higher at the op today, 2. -- >> such a knee-jerk move to sell that incredibly well d. people do not even think about who the ceo and what he's doing. >> by the way, jim cramer is here with us on set.

decker is a great person, so we decided he didn't deliver effort a great quarter? no we've seem then all our lives. >> we do want to get to news involving our own company. after 28 years, mark hoffman, longtime cnbc chairman, will be stepping down from his role. in a memo to employees he writes, what a marv his can-do family we've become. cnbc stands for something. it impacts the business world, vesselorer and individuals struggling to make sense of their money. you have made a difference he will be step down effective september 12th cnbc has gone through great chain under mark's tenure. >> i love mark. >> me too.

i can't say enough >> i don't know. i didn't want this. >> 17 years is a long tenure a lot has happened at cnbc. >> the kinds of shows that have been developed under mark, a "mad money," a "fast money," shows that spoke to the individual investor at a time when nobody was talking to the individual investor. nobody was talking to the aspirational investor. the people at home. >> you are dead right. when i wanted to talk to people on a show, take calls, and previous people at the network were like, you can't -- basically the great -- and mark said, what a great idea, let's speak to real people

but you say you've always made it understandable. leslie, we bring you in and make everything understandable. >> it's a mission, though, to bring that type of content to the viewer he has been such a champion of that over 17 years we've had a financial crisis in that time. we've had a pandemic during that time all of those things matter not just to the viewers, but also the employees he stewarded as well >> this is a call my wife thing. >> just linear tv to streaming, broadband, internet. when i started at cnbc in 2004 -- mark hoffman has been my boss for much, if not all of my career at cnbc we barely had cell phones. blackberries were then thinking about how to grow a business in the world where

internet week a dominant way of conveying information, that's the kind of information cnbc has been gone on >> mark has been an incredible leader, a leader that we all look to for a lineup -- you never want to jinx anybody, but there's not a lot of competition -- now there will be now that i said that >> can we also talk about culture, too he says this is his family, and he really means it. >> absolutely. >> we work with the nicest people in the business that's not a secret. the nicest, nicest people coming from the top that's something that's set from the top. he should take absolute credit for that. >> i worked with abc, cbs, fox, "wall street journal," some "new

york times," endless -- i would say treated -- at -- >> speaking for myself, mark has given me every opportunity i've ever hoped for or wanted i will always be grateful to him for that and you and i have been here a long time. a lot happens. >> it's great here. >> i've lost a father, grandparent, gained a husband, have had kids. he was there every step of the way. >> these are all platitudes, but they're really not my wife would say you've been an unhappy person all your life, and then came to work for mark there's got to be a reason it wasn't just the meds -- probably too much information [ laughter ] >> we wish all the best to mark.

and behind every great man is a great woman, kiki. >> the boss is never supposed to be your friend, but it worked out this time. they're nice, they care, they're family people. mark is all of those he's a great leader. i don't want to say he's missed, because i don't know what's going to happen. we will -- i will say to see what he says about my show every night. it's incredibly market, this new york stock exchange move he's the best i've ever worked with. >> he would say right now, get back to business jim, thank you so much for staying around. >> thank you for the opportunity to say how much i love mark hoffman. >> see you later on "mad money." back to the markets now. walmart a bigger mover let's get over to courtney reagan, who is live in bentonville, arkansas.

>> reporter: i am here with wall matter's ceo and chairman doug mcmillon on your earnings day. things seemed to tick up since the warning about three weeks ago. >> first of all, thanks for making the trip. we're making progress. after we shared or first quarter results, we had too much inventory, in the wrong places in some instances. over the last few weeks, the team has done a great job in taking action. >> do you still have too much inventory at 26% >> we do, but the excess inventory we wish would go away is about $1.5 billion of the u.s. number. it's important to remember how much of a challenge we had being in stock for two years because of all the things that happened during the pandemic. about two thirds of what we sell in the u.s. is made or grown in the u.s. the other third is imported. in both instances, we were

chasing it so part of it is just to recover and have the right amount of inventory for the seasons. then inflation on top of that. what's left would be excess. apparel in particular is where we're still heavy. we got back to school. we're ready to go for halloween and all the seasons coming after that so a lot of progress your quarter ended july 29th two weeks into august. >> back to school has been good. i think back to college is going to be good it's a conflicting period, in terms of the data. if you look at what's happening across categories, inflation is having an impact so we see them behaving in difficult ways, but we're also attracting a lot of new customer to say come to our stores, our app, our website

higher-income families are shopping at walmart, because they're price sensitive now. families making over $100,000 have driven a lot of our growth. it's stronger than what we had seen in the first two months there's things happening that are encouraging. if i take apparel, for example, there's places we're still working to sell through clearance, but men's flannel is selling well, even though it's hot, because it's new, a good value. the product is great again, conflicting information it's kind of true that everything is happening at the same time. >> how would you categorize the consumer does that mean the consumer is weak >> i think people are really price-focused right now, regardless of income level the longer this lasts, the more that will be the case. right around the middle of the first quarter is when we saw food inflation reach a left

where behavior was starting to change food inflation started ticking up the fourth quarter last year, we thought it could take more time, about you it went up fairly quickly, went up more than we expected, and kind of middle of march, it got to a level where people masse letters that 50,000 in household income started behaving differently enthen the 75,000 left and now the 100,000 level. people have to pay for back to school, and a lot of people wanted to take a vacation. they're prioritizing their spending at the bottom of the list was the apparel category, because they were spending money on other things that wasn't a total surprise, but the speech one of all of that happened was faster than expected. >> reporter: i'd like to talk about -- if your costs go up are

you keep -- are you keeping prices low how are you figuring out pricing? >> we're trying to keep prices as low as we can we have to balance both of those interests. our purpose is to save people money. that's what we want to do. we try to do that through margin mix, being strategic our cost of goods went up, and pricing even if the first quarter to manage that, but below the gross margin line, our transportation costs, other storage costs went up. so you have to then adjust to that over time as well as we have done that, our price gaps have maintained we're the price leader we're comfortable with where our price gaps are, but we want to deliver that at the same time, deliver the profitability that shareholders are expecting. >> are you seeing inflation peak

anywhere overall in certain categories >> i wish i could call a peak for you in feed. we'll have to wait and seen. we've seen food inflation to be persistent and continue to tick up general merchandise is a little better the ports are clear, the transportation issues we were all so focused on a while back have cleared up. we have a different set the challenges than in the last six months. >> reporter: you talked about, on the call, that your supply chain costs have come down have any issues been permanently fixed? >> i think wage inflation will be with us forever all the employers, including here at walmart, we have raised our wages, which we're happy to do, but that creates a new level at which pricing has to be adjusted so i think there's some level of inflation that will about with us and hopefully we'll see food inflation improve through the

next year. >> do you think wages are high enough to keep pace? >> we keep adjusting market by market we have restructured and changed some jobs. that's given us an opportunity to invest. so we're in pretty good shape. >> walmart plus, you haven't said much about walmart plus, even though it's been in place about two years, i believe, estimating about 11 million members. they say they think it's plateaued is that why you added in the paramount plus as a streaming benefit? >> walmart plus is important, but one of the reasons we don't emphasize it too much, we don't want to be judged. our total sales line, all these other aspects, walmart plus is strategic to us. we want more walmart plus

members. the primary is food delivery, as we learn to do grocery pick, pickup, which is growing at a nice clip. that unlocks the -- and as we were discussion before we came on air, it includes delivery all the way to the home, which is an exciting service we have. adding paramount plus is just part of an ongoing plan. >> walmart's u.s. e-commerce did sec rate 12% year over year. in the last two quarters it was just 1%, do you need another -- >> mark did a great job, but we have all become e-commerce retailers. our business is omnichannel, and our leaders, and throughout the company, including our merchandising team now think about first party inventory, as well as what we do for pickup and delivery, and our marketplace. it's growing quickly

the fact that we have more and more available, and walmart u.s., we have 180 million items now available on walmart.com, enabling you to grow the top line and things that go along with that. marketplace business and e-commerce business allows growth in the future all of these pieces fit together in a way that -- you can see it in the numbers today as things are start to go scale. we have an advertising business globally now over 2 billion. e-commerce last year was over 73 billion, so around the world, the pieces of the puzzle are being put together in mexico, in india to an extent, here in the u.s. we're excited about what that emerging walmart looks like. 30% year over year, contributing

a nice amount of profitability are you now seeing a slowdown? advertising? >> we're underdeveloped. we have a unique proposition we can do a better job than just about anybody of helping an advertiser now if a transaction helps later in the store, so having the digital -- with our web sites, to share data related to how transactions may have followed on from that ad is also a unique position for us. >> reporter: we're sitting here in august. some back-to-school spending has begun, but you still have holiday, very huge, very important for all of retail. if consumers in all income brackets are being discerning, what does that tell but holiday? >> i do think we'll feel some of the impacts we have already felt in the second quarter. so we're being thoughtful about how many televisions we have, how much we invest in toys,

other categories, but people are going to celebrate christmas, new year's, there will be a great thanksgiving meal. we're positioned to take advantage of that. >> the merchants are really focused on opening price point -- also have a lot of new items in food and general merchandise that i think will attract spending from all kinds of spending levels. >> the inflation reduction act is expected to be signed today >> i personally wouldn't recommend a policy be put in place that inhibits the free flow of capital. money is not sitting still it's moving somewhere. companies, investors, those that are more wealthy are re-deploying capital all the time, creating growth.

that tactic doesn't make sense to me, but there are other things that we're pleased to see. more incentives for renewable energy would be good for this company, our business and help us achieve some goals we have. as we wrap up, i know walmart has done a lot to add benefits for employees at all levels of the company. we just saw the supreme court overturn roe v. wade what does that mean for walmart? you're based in arkansas, a conservative state, but you're one of the biggest employers >> it matters to you specifically as it relates to our healthcare plan. we have an open enrollment that starts in october. we make some enhancement before then, but we'll work on policy changes, and we're definitely listening to people and how they feel about it. >> doug mcmillon, thank you for

inviting us and joining us melissa, back to you at the new york stock exchange. >> thank you, courtney and thanks to doug mcmillon. here's a road map for the rest of the hour plus what we learned from top managers we have warren buffett, david tepper and others are buying and much more from the interview one of the top street analysess intljo us with his picks. "squawk on the street" is just getting started. stay tuned

joining us now is liz & saunders and chris harvey. liz ann, i'm a chart kind of gal. i like what you sent two of the charts show percentages, above the 200-day moving average just too put it in a nutshell, not too many were above the 200-day average, and then above the 50-day average, which indicates momentum, many were going into the majority in terms

of percentages what does this signal to you >> there's no question that breadth broadly has been much healthier in this rally than the couple rallies since the bear market began in early january. that said, there's been a bias in strength. so that's the andy thesis of what you would see typically rallies if it was on the basis of a pickup. then you also have the fact there's been a low-quality bias to a lot of what is been working. retail favorite -- high volatility to bes, low r.o.e. stock, and our message has been take advantage, but kind of fade the low quality staff stuff that's been doing well, and lean back into higher quality segments of the market

>> so be wary of the stocks that have -- because, you know, it's a big club of stocks more than 30% up from their june lows, liz ann, but in terms of the once that is lower quality, get rid of those, but don't be afraid of those that had rallied. >> if they've got the fundamentals -- i also think we could look even at the sector level monolistically i think this is a factor-driven environment. i think you want to emphasize called it a quality-oriented basket strong free cash flow, healthy balance sheet with high cash loud debt. i think that's a better way to approach the market than trying to make a sector call or two. >> chris, turning to treasuries, you think the ten-year represents a market risk potentially as it rises with a less hawkish fed

it's still below 3%, yield curve is still inverted. what do you think are some of catalysts is there, is it a portfolio rebalancing that could provide headwinds for the equity markets? >> so there's a few things there. one thing i would say is our trading range is 4200 to 4300. we're there. the risk/reward near term looks lackluster we're not as excited as we were a couple weeks ago what we've been saying is the cyclical part of the market has really sold off, beaten down, and we could see a balance in that cyclicality, and the reason why rates could increase is the fed -- it's not pivoting, but it's decelerating, right so when people believe the economic is coming back in, things are okay, they're not terrible, they're not great, they're okay

that can let the door back open for some of the cyclicals. the problem with the broader equity market is a growth market one of reasons why we're -- that could cause some choppiness in the near term. >> how are you recommending investoring position, particularly with so many data sets out jackson hole is at the end of the month. so, chris, it would be volatile. >> we think we'll continue to be in a growth market we want people to buy growth, not the high flyers you referenced before, but can you did find stocks in 14 to 25 times earnings that's where we place a lot of emphasis. >> i would also echo, we do want to barbell that, but at the end of the day, we're in a growth market we want those growth at the right price type of stocks, and

we'll continue to be in a growth market for some time. >> liz ann, diana olick had a piece yes on cnbc.com talking about the potential housing recession. we saw starts declining month over month in july, declines in permits, homebuilder sentiment in negative territory yesterday. does that point to a further drag on gdp growth >> for the most part, yes. i don't think it represents what we saw in 2006 i do think we have more rolling over to happen in housing broadly, and of course housing is always local. so i don't think -- to use the word again, i don't think you can look at it monolithically, but i don't think we have an implosion coming we didn't have previous issues,

but you're not seeing it in all of the metrics that you mentioned. i think it's only now just starting to filter into the good side of the imply. a lot of those segments of the economy, the combination exacerbated in a positive way by the effect of the pandemic, i think that is very much in the rear-view mirror i think hits from housing, the ripple effects are not fully in the rear-view mirror. >> thanks to both of you it was good to see you and zoom losing about 8.5% on the downgrade we mentioned earlier. more on otanher software name being downgraded is next stay with us

welcome back ticker bgt down about 15% this

year information technology one of the worst-performing sectors on the s&p this year. snowflake a name not helping the cause, losing more than half its value this year. they open a -- downgrades from buy to hold, they say after doing some recent channel checks, demand cements to be softening. so some stretch valuations. times for a news update. good morning, frank. >> good morning. president biden will sign a comprehensive spending bill later today that seems to fight climate change, raise taxes on corporations and expand healthcare coverage. he's expected to deliver remarks from the white house's state dining room at around 2:30 p.m. even. the first lady jill biden testing positive for covid amid a family vacation.

this comes one week after the president tested negative. she will isolate for at least five days in a private residence in south carolina. and a$ap rocky is charged after what police called a heated discussion in hollywood that's the latest. back over to you, melissa. >> thanks, frank holland. ubs gives us their topics in this space that's on the other side of the break. stay tuned this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done.

i'm okay. - hiring is step one when it comes to our growth. we can't open a new shop or a new location without the right people in place. i couldn't keep up until i found ziprecruiter. ziprecruiter helps us get out there quickly and get us qualified candidates quickly. they sent us applicants that matched what i was looking for. i've hired for every role, entry-level technicians, service advisors, store managers. ziprecruiter helps me find all the right people, even the most difficult jobs to fill. - [announcer] ziprecruiter, rated the number one hiring site. try it for free at ziprecruiter.com

hopefully we'll see food inflation improve next year. >> earlier this morning doug

mcmillon joined us to discuss earnings results, a wide-ranging conversation with courtney reagan to talk more and what this all means for the overall consumer, michael laser, ubs retail ammist joins us now a lot of commentary there, particularly as it pertains to inflation, mcmillon saying it will be with us forever, larmgly due to the wage inflation, the stickiness there. what comparisons can we draw for retail in general? >> i think there's three takeaways from the results this morning. number one, the consumer is navigating around the challenges and cross-currents, but it's in a relatively good shape. that's helping support some of these pretty steady overall trends

two, these are two of the best retailers on the planet. they are taking share, leverages expenses, and navigating through what is a really tricky environment quite well number three, with that being said they bop have to work through some -- because of the dynamics in the environment i think we'll see that other retailers. are having more of a challenge consumers will remain relatively steady but they es two stocks i think you can make money on. >> where do you see the challenges obviously one of the benefits of walmart that they highlighted was this idea they can be competitive on pricing they're sees -- the cfo told cnbc sees it with greater that

$100 trade down on certain items. is it the luxury pockets that will be more challenged. more i had who sin crattic in terms of operational and logistics, really manage margins in terms of -- against this backdrop with the macro challenges out there >> one of the challenges they'll have to manage, if you look back the last couple years, it's been as different environment in history. first the pandemic, then global supply chain challenges, more recently inflation what we'll see over the coming months and quarters is that the challenges are no less dynamic or intense they're just going to flare up in different ways. one quarter a consumer might be interested in traveling, the next they might be interested in staying at home, especially as the challenges that have persisted are not going to go away the pandemic is here to stay, as

doug mentioned, wage inflation is here to stay. so it's going to be the retaretail ers who are nimble and large that will rise to the top. >> michael, the walmart stock is right about $10, $9 away from where it was before it first had the huge -- close to filling in that gap i'm wondering, if you believe the forecasts that walmart is giving people believe the forecasts in the last time, and then got smacked, because they lowered them again just week later how confident are you that management actually has a grip on what's going on >> so, mel, we look at this as a pendulum it swung very hard in 2020, 2021 it swung in opposite directions in the last year or so, and what we expect from here is more

stability, more balance, a steady state environment for walmart to operate in. as far as the stock, we think $7 for earnings is very realistic for on 2023, especially as it gets past some challenges, doesn't have to incur them again. it's going to trade at a low multiple, which is not far from where a lot of consumer staples trade, like procter & gamble and others >> mike alternate, how much of that stability is incumbent on commodities staying lower, oil prices staying lower, the environment as it is today >> that's an important point the consumers does pull back

demand falls i think we're going to continue to see that play out, appeared we could by in an environment where it's going for the margins of the retail sector, as they already raised retail prices, and they look to maintain or keep a bit of that extra spread in the next year. that would be the bull case in 2023 >> i go ahead that they have visibility under the i said of the year beyond that, when unemployment starts to tick higher, how do they historically do

consumers have to depend on going up more. the same thing could be true for target, as consumers consolidate shopping trips they might have been got to the shopping mall, the home furnishings store, and then they may do all the trips at target there's a perception that target may be more discretionary disposed, which may be true, but it will play very well i think target and walmart are both going to perform better. >> thank you very much, michael. >> have a great day. you too. ed deadlines for money managers to disclose their long-term holdings came and went

last night a prevail theme was managers off-loading risks with some sporadic opportunistic buying. despite many major investors sold out of their tech exposures. appaloosa's david tepper, obviously -- large-growth investors sold off many of their tech names in an effort to stem losses in performance. michael burry, sold out all equity positions, just to name a few, exited his short bet against apple as well, and added geogroup, a prison operator.

warren buffett's berkshire hathaway picked up more paramount and more vikings glock doubled stakes these squall 13-f filings are backdated to proportfolio stood at the end of june they they have likely changed since then they took so much risk off the table, melissa. >> they took so much risk off the table. you've got to wonder if they participated at all on the up side i'm sure some have as you mentioned, we have no idea where they stand right now. a lot has happened. >> interestingly, there was some b of a data showing that hedge funds have been getting into the game, so i think once we get the sense from the third quarter, obviously we'll know the history there and get a better picture, but yeah, if they sat things out

and went away for the summer, went to the hamptons -- >> that's the biggest rally we have seen. >> exactly. >> exiting the short position on apple, that was a wise move. >> yes, it was. >> potentially very, very well timed. >> unless he's back in it. >> in which case, even better. next hour coming up on "techcheck," what is amazon's next acquisition target, and it starts in just a couple minutes. "squawk on the street" will be right back

welcome back this week marks one years since the taliban took back control of afghanistan. kayla tausche has more. >> some 81,000 evacuees have

resettled in the united states, most looking for work immediately once the three months of initial government benefits ran out companies pledged to hire refugees industries like hospitality and leisure have been the most popular for refugees among the most ambitious companies, am son, tyson foods, hilton and pfizer. a procurement specialist for the afghan government, he now analyzes supply-chain data he says the most foreign concept to him was working remotely. >> sometimes my sons want to climb on my shoulders and take from my ears, hey, dad, let's go and play, so i respectfully tell him, hey, song, i'm working, can

you police go out. when he goes out, i just lock the door. >> i think we can all identify transportation and child chair remain challenges for refugees, but the biggest asset is their >> one of the sort of refugees superpowers is that they are more willing to move within the united states for work and so they historically have been able to capitalize on that to go to places where there are still great jobs available. >> the government doesn't have data how many of the evacuees have found work in the years since the evacuation or are still looking or have authorization. that's going to be one of the biggest challenges for the u.s. as we get farther away from august 2021 and make sure these evacuees aren't getting lost here in the u.s. melissa. >> an important story. thank you. coming up later on "fast money," former target vice chairman breaks down the retail

e nsernd inflation the state of thcoum a more. don't miss that. 5:00 p.m. eastern time "squawk on the street" is back in two to adapt in the changing world, you could hire a professor of theoretical mathematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization. is that important? or you could use workday. the finance hr and planning system that helps cfos make better decisions faster. for a solve problems like a genius world. workday. for a changing world.

welcome back to "squawk on the street." i'm dominic chu. stocks are mixed at this hour.

we took a little leg lower in the s&p 500 a bounce back, up one quarter of 1%. you can see consumer oriented sectors like staples and discret discretionary near the top technology is the laggard today. within that sector you are seeing a number of those computer chipmakers trader lower. broadcom, applied materials, micron, advanced micro devices, in nvidia. we are also tracking declines in the solar stocks within that technology trade watch sola solar solaredge engine phase energy. they are up 90% in t lt x heassi months alone ch keep an eye on the chip stocks and solar and "squawk on the street." we will be back after this commercial break

(vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network. how are we different? we exist only on your phone. which means you sign up, get help, and pay all right here. so you get a single-line unlimited plan for as low as $25/mo. switch today at visible dot com. ♪ ♪ ♪ ♪ ♪ ♪

what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create

we are dealing with here digesting the retail earnings from this morning, walmart and home depot dow is hire by a quarter of a%, s&p 500 down by 11 and the nasdaq down the most home depot and walmart, walmart

filling in that gap from the drop all the way to the lows after it warned walmart's at 140.65, up by 6% home depot a solid quarter as well fewer transactions but the average per transaction was higher, up by 3.6% take a check on chinese internet stocks, too. this is something we have been watching de-listing fears always cloud everything the sector. there are a number of reports this morning that tencent is going to divest part of their food delivery service following china regulators trying to crack down on these sort of empire-like companies trying to consolidate data of the chinese people and to try to disperse that data, decentralize it looks like it may be working, that crackdown, in the terms of the impact it's forcing companies to have. >> also bed bath & beyond, there was a filing out yesterday this was not part of the 13f

cohort it detailed some options tuft that ryan cohen of rc ventures, the gamestop chairman, had made. he purchased american options, all expired january 2023 exercise prices of 60, 75, and 85 earlier this morning when i checked, that stock as trading around $15 a share you can see now closer to about $21 per share. >> 60, 70 and 85 >> 60, 75 and 85. >> expiration date >> january 20th. >> january 20th? >> so very out of the money. >> extremely. >> very, very out of money i would imagine dirt cheap i thought you were going say because he tweeted an ice cream cone or something like that. i guess there is still time in the day for that to happen. >> there is time of course, this follows a rally overall in meme stocks other meme stocks today are not to doing nearly as well as bed

bath & beyond, gamestop, amc the poster children of the meme trade. down just slightly. >> amazing all it takes is just a filing that shows purchases by a recent activist in a stock, got a settlement three board seats. >> the cost is less than the market cap added for sure. that does it for us on "squawk on the street. "techcheck" starts right now ♪ good morning welcome to "techcheck. today a look at walmart's transformation into a tech company. well, they are pushing into streaming despite a strong consumer as advertised plus, hedge funds hopping back on the tech bandwagon. how berkshire's paramount bet, buffett scoops up more shares of apple, inches from all-time highs. here to help us break to down, hello, tony. joining me here at