business is doing right now. but it's an incredible company you know, that's transition over the last 15 years. and you do a subscription. >> mitchell, we have to thank you. we appreciate you being with us very much. look forward to talking to you again soon >> talk to you soon. cheers have a good summer >> all right that does it for us today. make sure you join us tomorrow right now, time for "squawk on the street." >> good thursday morning, everybody. welcome to "squawk on the street." i'm david faber live from the new york stock exchange. carl has the morning o we have a big interview coming up in a bit. you don't want to miscisco ceo chuck robins they did report results that are being met enthusiastically in the market, at least thus far. the stock looked to be up as much as 5% in the premarket. speaking of the premarket, let's take a look at futures

see how things are setting up. there you get a sense for it right there. perhaps modest pop at the open our road map does start though not with the broader market but with this little crazy pocket of it we call meme madness. bed, bath, & beyond shares are dropping after ryan cohen reveals he's going to sell his whole stake in the company maybe he already has also, all in this morning. kohl's cut the guidance. inflation an issue inventory an issue also anticipating software demand and ripe for the picking, tlo reports that april sl going to release the new flurry of devices. the stock, we were talking about it yesterday, how can you not? it is up 32% only in the last couple of months let's starts with bed, bath, & beyond it's august and it's fun and it's little disturbing down sharply after gamestop

chairman ryan cohen filed a notice of unteintent to semicosell his entire stake in the company. this stock soared by 360%. this is based on yesterday's close. of course, yesterday i wasn't in tuesday to point this out. you know, he filed a new 13-day. but the options purchase that's seem to be cited in the part has fuel for the rise, we're not new. they were old. and there is no reason for them to really file a new d i still don't understand they did include another 2% in ownership stake. >> jim, it's very possible it's possible he's out already it's possible he sold all the options. i'm not sure he has to file on the options at all

we wouldn't know why wouldn't you and shouldn't this be something at least that the sec takes a look at? >> all right so if i were chairman ginzler or head of enforcement at the agency, i would call the council of bed bath & beyond and ask if you gave approval for the sale of an insider stock. which would be certainly deemed within his spirit. so what you would say is did you really file to sell or sell stock when you had material nonpublic information. you certainly had. your people on the board this very morning bed bath files it a regulation fd saying that we're pleased to have reached a constructive agreement with rc ventures it goes on to also say that they

hired -- with advisors, external financial advisors and lenders, okay, because they have credit problems on strengthening our balance sheet. okay, so what i've been urging every single day is that they sell stock but you would have to -- you'd have to disclose how the company is doing at the same time. this would indicate that the company wants to sell stock. they really let a director sell stock ahead? >> he's the director >> number he's not >> he's not on the board he has three people he put on the board. >> he is involved, obviously >> john dustin is not involved as far as i understand you see this filing first by ryan cohen he placed three people on the board. and then the company comes out and says they're working to strengthen balance sheet

>> taking advantage of this? >> right >> surprising surge. >> so let's go back to the sec i want to be very careful about this but i would ask them to cooperate with an inquiry to find out how this all happened and ryan cohen's involvement if they are at all forthcoming, then i would issue a subpoena to ryan cohen saying i want all documents between you and the three members on the board that you put on and i want to know if you have any material nonpublic information to how the company is doing perhaps he doesn't i find that would be highly unusual being he put three people on the board. the sec should be -- >> i want ryan cohen to come on. i asked him repeatedly >> the founder chewy >> they do not say anything about him. they would not even go as far as

acknowledging that he's a founder. >> he is somebody you want to talk to i have not spoken to him. i don't know the guy he was at the heart of the gamestop >> yes he also made an enormous amount of money snchlt february and march he bought what -- he calls it 60, 75 and 80, various sizes. 60 is the largest. >> unhedgeable position. >> and, by the way, those that have gone up enormously in value. >> yes >> since the bottom of the stock. by the way, the stock was higher when he bought them. don't forget he bought them in that -- you know, when was it, sorry. february time frame. march. but nonetheless, most likely did fairly well. and then his own position of 9.45 million shares which very well could also be out. >> what is really important here

is if you're the agency, you would have to say i need to know everything about this. i need to know it right now. because you cannot sell or even file to sell if you have material nonpublic information >> right >> but what about the larger context here, jim, of you were talking about this yesterday of the chat rooms, of coordination which we also talked about when this began first at the meme craze itself back in early '21. what about that? and the sec taking a look at that >> if i were, again, in the division, i would call in the ringleaders of the chats that they tried to goose the stock and break the shorts people try to get stocks higher. that's fine. what's the difference? they're not trying to drive the stock lower. but at the same time, the sec should be on top of this rather

than three months from now examining what is going on so, david, i find it raises eyebrows i believe it's not advised that ryan cohen's people are not advised to be able to file this in the midst of a troubled company needing capital by their own admission. >> right i do wish the agency would step in right now and put that inquiry through i wish company if they got the inquiry would disclose it and not do this thing a day late and i really feel like the company should come on aur and explain themselves of which they won't because they're too scared they don't have any -- and -- >> they don't have a plan. >> yeah, they have no plan the whole thing has just been one giant amateur out. >> yeah. >> and it's shocking believe me if, you're brian cornell from target, you would go in and you would see where your stores are next to bed bath's and wipe them out

and that's all i have to say about this particular thing other than the fact that i haven't gotten 20% coupon in the last week from bed and bath. i want to know whether they're dead or not. we have a serious ceo next to us >> we do >> while we discuss this hapless situation. >> we're going to get right into it with him too. and, you know, obviously this is story we're following throughout the day, jim, as well. we take a look yet again at bed bath & beyond. let's talk cisco >> absolutely. we have chuck robbins here, the ceo. they reported last night, they reported a terrific quarter. in what is very much, chuck, i think you agree, in keeping with it you said could happen if you were able to get availability for your supplies. >> jim, thank you for having me g to see you for the second time in a row in person and we're together in person and we've been saying all along that we have a record backlog and when the supply chain begins to ease, we would begin to see the revenues flow through. so we saw some early easing in

the supply chain which is positive and, you know, we look ahead to the next year. we feel like it's going to continue teams are working on a lot of product redesigns. those are coming into fruition over the next 90 days. the team did a great job and we're really pleased. >> okay. so chuck, your company is followed by hardware analysts. there is a lot of skepticism about what your growth rate is i want to look at it differently. i think i should measure the company by how the annual reoccurring revenue is doing which is 8%. that is services which, of course, we're talking about a different kind of talleying than what they're used to and the product orders are double digit and these are things you said you have great visibility on >> yeah. >> it's almost like we're talking to a software company that has a lot of renewable revenue. >> we were talking this morning with a team. and for first five years i was in this job, we were going through this transition of shifting to writable revenue we needed more revenue and

subscriptions. now 44% of the revenue is coming from it reoccurring offers and so the annualized reoccurring revenue, the product side is up 13% this quarter. that is a real indication of future software growth and it's, you know, we're beginning to see the benefit of what we've been working on for the last five, six years and actually seeing some of the predictabili predictability come back now that supply chain is easing a little bit. >> can we talk about that? the last time you joined us, it was a different story. it was 90 days. the so what happened we focused a lot with you on china. you seem very uncertain as to what would open, when it would open, obviously they were dealing with the lockdowns take us through exactly what actually happened. >> it was a simple discussion. two issues, 200 or $300 million hit from russia belaruse and we had power supplies.

and if you recall, we -- our quarter ended 30 days later than anyone else. we reported the implications of the china shutdown at the time i think we were saying they were saying it was going to open up on june we were not sure and so we guided based on what we knew then and then things improved the power supply issue is still working its way through. but we saw other components become a little easier to get. we still are going to have headwinds. if we didn't have supply chain headwinds for the year we just guided, we would grow faster and we may if the supply chain improves as the year goes on >> but it has significantly improved, at least from that time period that we lost spoke >> certain aspects have got better but we talked about seeing more components show up in the broker network. and the broker network gets the inventory from excess supply that is not used as you see consumer demand weakening in certain areas where we share components, we don't

have complete overlap. burt we're seeing them show up in the broker network. we went out and acquired what we could so we could service our customers. >> next two years pretty solid you said that on the call. i don't know anyone that has visibility past the quarter. what makes so you certain? >> well, what we gave is we said we have a record backlog and it's greater than it was last quarter we didn't give a number. we gave a number last quarter. back in the math what it s and we gave rpo of $31.5 billion of which 17 is short term which means we'll recognize it in the next 12 months so if you look at the backlog that we have and you look at the rpo that we have, and then the other thing we told them is we expect as we exit this fiscal year for our backlog to be at least equal to what it is today. >> which means you're able to do that, can you correctly forecast >> you assume the rpo is going to grow year over year hopefully, you know, we're positioned well.

>> what i thought was encouraging, these demand trends seem to be accelerating. at 5g. we thought 5g was old. it is not. right? the enterprise 5g, very much alive and well virtual networks you talked about -- you talked internet of things these are all theme that's have just kicked in this but now why have they just kicked in, chuck we all knew they were coming >> there are these mega trends i said on the call that there are more happening concurrently than i've seen in 20 years so all of those are areas we can contribute to our customers and the whole security issue that we see in the rearchitecting of security but we gave a number on iot. it is over a billion dollars now growing double digits. and that was one of those things we talked about for a decade it finally is substantive and

growing. and when you think about things like climate and all the work that's going into trying to cut that out green house gas emissions, a lot is going to drive technology because you have to connect the industrial systems in order to control them more effectively, make them more efficient. and then 5g, we always knew if you think about what is happening in the consumer space with 5g today, we all have 5g on our phones we're paying the same thing for the service we had before. so where the profit going to come from for the carriers it's going to come from the enterprise so we're working diligently with them to build out services that can be sold into the enterprise which is where they're going to make money. >> we talked a lot about the hope and the expectations for 5g for a long time. in particular, in the enterprise and yet, i don't feel like we have really seen it start to register. >> we're starting to see things. you're seeing it in manufacturing because it has very low latency you need to get real ftime

feedback from there. it is being used in mines. now customers are choosing 5g for the branch connectivity in lieu of some other type of connectivity is more viable as -- for small branches as a mainstream connectivity method. >> so not broadband, for example, replacing broadband you're saying? >> it's an alternative to if a customer should choose to use it they're both viable. >> chuck, i want to talk to you a bit more about the last 90 days we had, i think we had three recessions in the last 90 days according to the market. but what are you actually seeing in terms of the interest rate environment and the impact in terms of macroeconomic headwinds or the worry of them that we hear so often about from many companies? >> and geographically? >> yeah, we so we talked about it on the call yesterday we grew 31% in product orders a year ago the year over year comparison is not the number you want to look at we gained several metrics yesterday to help people

understand that demand dynamics. first of all, q-3 is our prior quarter. q-3 is the largest q-3 from an orders perspective in our history. and we grew over 15% in q-4. that is in line with our historical growth rates. that's the first data point. second, we exited the year with pipeline growth and double digits which is always a good sign the third day of point is that we have -- when you look at the quarter, our sales teams forecasted the end of the quarter at the beginning of month three and they exceeded it and we finished stronger than we were in the first part so we just didn't see anything that signals material demand shift. and so we're not immune to something that might happen externally but as of now, we're not seeing anything significant. >> in the united states? >> the u.s. is good. what really surprised me and having the discussions with my team is how strong europe and

asia -- how optimistic our teams are in europe and asia >> so from your perspective, no recession in sight >> look, last time i didn't think china would shut down either so we live in a world where things are changing very quickly and things are happening very quickly. so we'll deal with whatever comes our way. but all i'm doing is reporting what we've seen, you know, over the last 90 days >> now, chuck, you talked a lot on the qual and it's very necessary if you work from home or wherever you want that you need cisco does cisco need cisco in terms of of what you provide >> we made a decision that we were going to leave the working decision to the first line manager and team itself. some teams know that they gain value from coming into an office they decide come in tuesday and thursday so we can collaborate engineering teams are doing this more than any other teams. we're also building much more

modern collaborative work environments, largely in urban areas. we're in our new york office yesterday and buzzing with employees. just buzzing because we redid it. it's modern. it's nice. people want to come there. and we're actually using it as a showcase for customers on what the office space of the future should look like and we're doing the same thing in atlanta and austin and dallas and san jose to try to give our employees a place that they want to come. but we believe -- >> you aren't mandating people coming back to the office three days a week or four days a week or whatever it is? >> no. >> isn't that a concern? i mean you're here you made it a point to want to be here with us, for example, because it's better. >> well, it is better being with you, david of course. but it's -- >> that is reassuring. >> i think it's just different people -- we were talking about it, different people in diffpoints and in their career have desires about work if the job doesn't require you

to be in the office, like the days of an employee going to the office and sitting on video calls and doing e-mail is just ridiculous will. >> right. >> and here's the data point for you. before the pandemic, two-thirds of our first line managers in the company had remote employees anyway so they were not in the office together to begin with they were communicating over the same technology we use during the pandemic it's no the dramatically different for us we had 15% of the employees that work from ho fulpandemic so is a little more natural for us but -- >> is that why your place is rated number one in the world to work at? >> in 20 countries around the world i might add. >> i think that is a good way to end it it was remarkable quarter. the quarter you promised and then you delivered that is really important you show up whether i deliver or whether you underdeliver >> that's why i want to be here today. i came last time and it wasn't as much fun. >> i bell.

want another look at futures sure why not? let's get arstted with trading in about nine minutes from now f. ...running on a big impressive wireless network. how are we different? we exist only on your phone. so you get unlimited data for just $30/mo, taxes and fees included. plus we have a new plan with 5g ultra wideband. switch today at visible dot com.

we'll certainly discuss kohl's and, of course, we always have to talk about apple given its market value by the way, don't forget you can catch us any time, anywhere,

listen to "squawk on the street" and opening bell podcast we're back right afterhi ts.

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all right. let's get to our mad dash. we looked at estee lauder, why? >> they reported a very strong 2022 third quarter but they talked about market headwinds. this is a very interesting story. this was an amazing quarter. but then immediately he cut his forecast he cut his forecast, i would say, short -- short way to put it is because of covid huge amount of business in china. and what i want people to urge is this is one where you have to really wait to see what it says on the call. you have skin care doing well. makeup doing well. fragrance is doing well. but because of the lockdowns, you just don't get the business that you would otherwise so i think that people should listen closely and it may be an opportunity, if you believe that china is going to solve its

problems >> well, we just had chuck robbins talking about certainly things got better as a result of a lockdown being taken off why is he telling a bit of a different story? >> let's say 618 did well. so the enterprise is doing well, chuck, but the actual individual is not going out or is wearing a mask they're interested in skin care, pimples, but you're not making yourself up which is a lucrative part of the business >> we know that can change. >> exactly that's why the greatest managers of all time. after this shakeout, i would bet that you want to buy the stock

the lockdown would have been baked in if anything goes right, you must buy this this quarter was extraordinarily strong it will only get better. >> between bed bath and robbins, we didn't have a chance to talk market what are your thoughts heading into today >> i still think that i'm keeping focused on the notion of what happens in speculation. and we have that i think that move is right a lot of the stocks are going to reveal themselves. >> so coin base, an upstart. they reported crap quarters. >> right. >> upstart is a good example of a very, very solid -- >> and they're up.

i think the that is the ultimate one. the bed bath may be the squeeze if the company in this notice said it's going to get better balance sheet. what i emphasize here, david, we had -- after a big year, we tended to have selloffs. so i'm looking for that. i'm looking for that selloff not necessarily the so-called blue chip stocks but we jumped into the company and the investment bankers i think it's going to sink back down i do think for the upstart that was a horrendous announcement when the stock went up why don't we use that as key to this market? >> okay. we'll say that is key to the market you heard the opening bell you saw us starting to trade there. there is a look at our real time exchange back at our headquarters here at the new york stock exchange, shares sharing a celebration of the two spikes etfs >> spike >> that's what it says there

>> whatever those are. >> over at the nasdaq. there is an exclamation point. actually it is when my dog's tail wags -- >> that was also a spac. >> well, that's -- >> everyone knows, well, we warned >> it hasn't done that well. >> empirically, we have great indices. if you look at past performance, you would certainly steer clear of that. >> yes, you would. >> particularly post spac. >> right >> the two year period after the deal, after the closing. we want to see what is the real quality of the companies what do they look like over time so we didn't just do spacs that haven't announced the deal we didn't just do spacs that didn't announce the deal and also, all right, you closed the

deal you're a public company. how did you perform? >> look, we again -- >> that is the spac index. >> yeah. >> you spend $10, you have 40 cents on the dlart ollar. you thought it was all going to be great they got a great company for you. they figured it all out. they really were going to blow the doors off. and there you are. 45 cents to the dollar >> look, it's taboo to just say, listen, i don't want you to buy this okay i don't want you to buy this i'm watching the chairman, one of my -- someone that i revered. that stock is a disaster in the lastsection.

>> it's also real hard to get information. >> i don't know why we put that up that is interesting. >> that was at $28 >> most successful spac. it was before the craze. goldman deal dave cody as chairman. >> and supply. >> and then they had a horrible quarter. you can see it there that was march >> yeah. precious metals. that's done very well. not precious, you know, the rare ones they have to deal with gm. draft kings. >> you're talking about successful spac? >> i have a handful. >> there are a handful of them they're few and far between. >> they're able to come public >> not anymore there is great excitement. remember my line, everybody has a spac and a dream >> at joeby.

>> incredible money grab they saw an opportunity to make money despite the fact that the underlying stock may go down to three or four. sponsor was still in position to make money when you look at the actual -- >> is it our responsibility to talk about how badly they performed? >> yeah. we havemany times. all right. let's move on to the broader market and talk more about that. and let's start with apple because it is a large market cap company in about $2.8 trillion hit a great move 32% the last couple months fell down, down 2.3% for the year as of this very moment. obviously far better than the more than 10% decline for the s&p. what do you think? >> i think you always should expect the unexpected. and i believe they will be, i hope, they will go out and talk about how much customer is worth. but what is really important to me, what are they going to do financially? >> because they own -- i use apple. it's just the way i do things.

i would love to be able to bank at apple i don't know why i have to bank at my current bank why can't i just bank with apple? it has a better brand name than my current bank. i wouldn't worry about the balance sheet. they do buy now, pay later >> jim, it's still in -- trying to sell phones i was trying to think of a better way to say it right. it's in service of actually the underlying product >> it can cross over i spent so much money on the blades and the razors i just kind of keep. the blade is gillette. that's the business. >> i know. >> so, they have -- this is a great purveyor of services had the services not been thought of, i keep hoping that apple plus will buy the football package that is not happening. >> all understood. but even apple plus, even, you know, you're getting it but really it's also just to make

sure you spend more and more time using your device by the way, we have talked about services and how important they are to apple and reoccurring cash flow from services and the fact they think it's a heighter multiple from investors. it's not going away. it's not based on how many people are going to buy new phone this year. >> well, moving strongly in the financial services that may not be a core competency >> well, i think that the people who use the credit through the credit cards, goldman sachs. i want to know if they bring that in the house. i don't know if they can i do think that it was not a great production and i find apple plus, i watch it a tremendous amount >> what are you watching now anything good? >> i'm still focused on the bear >> you didn't even name a show >> i watch ted lasso >> i thought tehran was good >> i didn't get into tehran.

>> you didn't? >> i just couldn't get into it >> i liked that. >> you know, people were very excited about the conclusion better call sal. >> that's not my show either you're naming shows that are not apple. >> all right let me back up how about they have -- >> you don't have any. you have apple plus and you don't watch. >> you are just -- this is like jimmy carter. i like all of them. >> i love that apple plus. all right, name a show i can't. >> come on that's not fair. >> i'm just having fun with you. >> you all right >> oil's up. >> there you go. oil's up >> so is exxon and chevron >> pepsico is the best of consumer products. that's a metaphor for this market almost everything that they put into is starting to come down in price. that's margin expansions pepsico is the best of that group. and is up for the year

it's a great place to be look at that chart look at that chart >> that stock is the moment the ceo who took the growth rate up dramatically has dealt with every single one of the raw cost problems right including getting a product to stores. that is, david, a core holding you know what it replaces? >> tell me >> verizon >> so glad you mentioned it. sbent a goodspent a good amountf time focusing on telecommunications and verizon in particular, the competitive threats at&t, we talked about t-mobile and the impact on the cable companies. this morning craig moffett -- >> heavyweight >> says the have and have nots diverged they moved them to underperform. $41 is the price target. >> it's an excellent report.

does it talk about the at&t and it is just shredding everybody's margins. they do like t-mobile first. in terms of the stock, it's easy but what is interesting, david, it made me feel like people that buy the stocks for the dividends, maybe that's being, let's say, not rigorous. if you want dividends, you buy the oil companies. >> right. >> so speaking of dividends, kohl's made a point of saying, listen, we're going to be good on our dividend. we're going to stick by the dividend when you issue a statement saying you're going to stick by the dividend -- >> that's not necessarily a good sign. >> no. >> it's not. >> so kohl's is aware of something. they're probably not happy to be reassured. >> the do you want to use kohl's as the greatest forecast cut of the quarterer? >> let's talk about it a bit >> they have had -- they're down 7% right now at kohl's this is a company that for a while there was a lot of discussion around would it get an offer to be purchased

>> remember dusk was in on bed bath >> now he did. this he is almost three for three in bad calls >> okay. so they have been looking for $6.45. that's aggressive. they're now looking for $2.80 to $3.20. so what happened is that kind of bad inventory and they didn't take the charge? you no he what i believe the ceo is coming on later today. >> yeah. >> phil gosk is joining cnbc later on in the day. michelle gass, you see it this okay >> i think you want to buy tjx excellent inventory. >> excess inven torey. we talked tjx yesterday. that stock ended higher, i believe on the day >> tjx, very down beat number. but the ceo is basically giddy on the call about all the different merchandise coming into play. excellent comp this that stock is going into

red. i just think to go back to bed bath so martin, the ceo was fired he was the cmo for target. he brought in a series of house brands made sense >> no longer there >> people like jcpenney depidn' like the new brands. this he have to throw that stuff out, basically put it in the channel or whatever they can do and then they need to bring in branded merchandise. that's what people are used to but what would happen if i told that you target really, when i look at it, mentioned they have a lot of merchandise, the right merchandise. you know what? there is a limit to how much merchandise can you get. if i were bed bath, i'd be scrambling to figure out why ryan cohen is selling the shares did he get a check off general counsel which is dubious and, two, where are we going to get all of our merchandise and, three, do we have the credit to get the merchandise? why aren't we selling stock and releasing our numbers,

prereleasing stock on the back of the memesters who may know that bed bath sells things for the bed and bath >> you have to disclose before you would sell stock, right? >> right. >> everybody has to know everything that you know at least or try to inform them. >> inside kr can do it. >> he's not an insider ryan cohen is not an insider >> so he did not talk to the people on the board? >> when an activist -- they're not an insider they're not on the board >> that's why you subpoena >> he very well may have been. >> i would like to subpoena all the documents to see if there is any sort of agreement for the -- we can go to the board. >> no. i understand that everything has gone through this recent moveup. >> easy. pick up the phone. >> they bought back stocks of the position chains. it's 100,000 shares. and so he filed that again by the way, given the volume yesterday, there is the expectation that the stock has already been sold by him that he's already out.

i haven't been able to confirm that >> getting hundreds of e-mail about how great this tehran is >> yeah. he's not on the board. he's not insider, jim. the stock is down. >> he could be deemed an insider is what i'm saying >> by who? >> by the agency >> well -- >> he place tleed people on the board. do we really believe -- >> activists do that >> and then they have no contact with those people? >> directly. inindependent directors who are not supposed to be sharing nonpublic information. >> then if he is selling, the stock is up -- >> or sold >> yes >> all right look, you know, all i'm saying is that the sec has to find out that question. >> i want to sec to look into more than just that i want to understand a lot of the trading in his name was there a lot of different things that have gone on recently did they file a new d? >> indeed. different groups that got together to move the stock up which is against the law you cannot do that they did that. that's against the law

it violates the 34 act violation of 16-e. just figure if there was insider. it should have -- was it a short split? >> right >> but the thing is you need -- if i were the agency, i would say i just want to be sure, guys did ryan cohen himself have any information that this material is nonpublic >> i hear you. it's a fair question to ask. >> you need to ask you can't just say i trust him >> go back to the office before we get to bob real quick, put up neilson nlsn. sold off a little bit yesterday. there is some concern. we got the announcement they reached that agreement with a 20% holder then yesterday sold off a bit. down a little bit. i can tell you based on a conversation i had with someone close to the situation, no change there they're going to update the proxy with details they're on track to get that neilson deal that new deal announced.

and had you're codified in a filing you can see, stock just changed direction. >> david, is there any impact neilson on what chuck robbins said, no difference between broadband basically and f 5 g? >> yeah. >> does neilson do everything? >> i don't know. they measure everything in terms of of that way did you see though the streaming for the first time is more viewing than cable >> no. i didn't i work for cable company >> i do too, yes >> it's clear that streaming it the future but we have not even talked about bob today. >> we haven't. >> and whether the future disney is disney plus is the future of disney the theme parks? >> how about all of the above? >> i think it is >> clear to be many the letter where he recommends espn spend, how likely -- that seems to be a difficult thing. people don't know that they owned 20% of that company.

he has an open dialogue. >> he is the smartest guy in the room. >> yeah. all right. you know what we have to do? we have to get to bob pisani >> estee lauder is down the conference call is everything >> bob, he is takestee lauder down >> i think very important moves up in the energy stocks. take a look at the sectors you saw overnight president xi made comments in china insisting they're going to open up and immediately we saw oil move up we saw copper move up. the energy stocks. you see here all the unusual names, all moving up here on the xi comments. reminding everybody how important china s transports have just had a great run recently they're still strong utilities have had a great run they're still strong ar ark has been down three days in a row. that is losing a little steam right now. we're stalling out a little bit. we had this amazing run in the

last six weeks or so this is the perfect scenario now. everybody believes that we're going to engineer a soft landing or a very mild recession and in inflation is going to slowly come down so a lot of perfection is priced into the market. it's expensive now 18, 19 times forward earnings. a lot has to go right for things to keep up into these levels in terms of third quarter, there are real obvious big leaders global cyclical names. so industrials and transportation stocks have been doing well banks are doing well and small caps have been doing well fading a bit more defensive sectors is health care and communication services with a problem meta is not doing away with that overall earnings, they're holding up in the mid single digits but there is a very wide dispersian here. look who is winning. the big global industrials honeywell, 3m, union pacific and the transports are doing well.

these are real big leaders if you go down a little furnl i further into the sector level, it depends on who you're asking. for the s&p 500, third quarter, we're up 5%. we were up 8% two months ago so it's down it's still positive. but energy is a huge part of the profit so you take energy out, it's only -- it's actually down 2%. and if you take financials out, we're up 8.3%. so it depends on how you put stuff in and put stuff out financials helping -- energy helping, energy is not helping finally just a comment on the retail earning this is morning you know what i see here they're returning an awful lot of manienoney to the shareholdes kohl's is down 5%.

wait a minute. they're keeping the did yvidend yield right now. 6% over on kohl's now with that down 5%. tapestry was a little better necessity had good numbers overall. they were above consensus. but they're raising the dividend 20% for tapestry and they're repurchasing $700 million in shares this year. so you add this up david, tapestry has a $10 billion market cap they're returning, do the math $700 million in buybacks and probably close to another $300 billion in dividends that is a billion dollars. this is a $10 billion market cap company returning $1 billion in money to shareholders this year. that's an awful lot. if you consider it, we're going to be over a trillion dollars in buyback this is year for the overall s&p 500. a lot of money going back to shareholders david, back to you >> yeah. and soon enough a little bit of that going to the federal government that's a good amount of money. that's a billion >> well, remember, it's the -- it's the inflation >> the inflation act with the 1%

tax on share buybacks. before we head to break, take a look at the bond market this morning. how are treasuries faring this morning? well, yields, there you go we've been keeping a close eye on that two-year note. yesterday it hit a recent high but backed off a bit a bit at 32 the ten-year 2.85, to 3% is what you'll getting on that we'll be right back. ♪ ♪

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1% of a trillion is 10 billion you would think i could do simple math. >> generac, one of my favorites. and synopsys, unbelievable quarter and i thought we should put them on. two good guests on "mad money," which is right over there. >> thank you so much. we'll keep an eye on shares of bed bath & beyond. >> and whether the s.e.c. will step in. >> at least take a look. keep it here - they get it. they know how it works. and more importantly, it works for them. - i don't have any anxiety about money anymore. - i don't have to worry about a mortgage payment every month. - it allowed me to live in my home and not have to make payments. - linda, dinah, joanne,

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♪ dream, dream when you're feeling blue ♪ ♪ dream, dream ♪ accenture. let there be change. welcome back to "squawk on the street." we have live breaking news, and? what we have is our july read on leading economic indicators, expected down 0.5%, down 0.4 five negatives in a row, six out of seven negatives for the year so far you have to go back to the end of '08 and '09 to find a longer

string of negatives. we also have july read on existing home sales. for that, we head east to diana olick. diana? >> rick, existing home sales in july fell 5.9% to an adjusted rate of 4.81 million units that's along expectations with a slight downward revision, the sixth straight month of declines and the slowest sales pace of november 2015, with the exception of the very big plunge at the start of the pandemic these are based on closings, so contracts signed in june briefly crossed over 6%. on inventory there were 1.31 million homes for sale at the end of july, unchanged year over year that represents a 3.3-monday supply, still tight. that continues to keep pressure on prices. the median was $403,000, an increase of 10.8%.

price gains, however, are shrinking. one more note on price tiers we had been seeing -- where there was more supply, but sales are -- sales were also weakest in the west, of course, where home prices are the highest. david? >> diana, thank you. good thursday morning to everybody. i'm here with sara eisen, we are life from post 9 at the new york stock exchange, carl and morgan have the morning off let's get a look at markets as we get set up for the day. sara, it will typically end for us, we are down on all the major averaging. >> 30 minutes into the trading session, here are three big movers, starting with cisco expected guidance on easing supply chain issues.

we'll have more on that and what the ceo told david and jim in the last hour, in just a moment. kohl's is getting crushed, cutting the full-year forecast due to increased promotional activity and higher costs. also a demand problem. michelle gass will joined us later on cnbc. ryan cohen said in a filing he intends to sell his entire stake in the company the stock has been on a tear, just a normal move in august, clearly not liking this sale potential or planned or previously -- >> or it's very possibly he's already sold those shares. also had a significant options position strike prices on those -- whether the stock was higher, then, but it's a 300%

move in the face of what was a horrible quarter the fundamentals deteriorating rapidly. >> yeah, that's how meme trades work, right? ryan cohen has emerged as an interesting character. rarely talks, hardly tweets, rarely doing with reality. and also the ceo left. he had taken a position prior to that, and again, he may no longer have any economic stake whatsoever in fact, that seems to be the expectation, but i haven't been able to confirm it, given the

involve yesterday, though, sara, it's certainly conception. >> top volumes ever. anything new worth trading off of >> no, we regoods prices have come down. the only thing new on my radar screen is there's 115 central banks in the world and we've got a huge number of them hiking right now. in august, a couple first ones to hike last year, it signaled that they were done. so the czech national bank and central bank of brazil both said

they're finished hiking rates. again, they did lead this wave of emerging and central bank rate hikes they're now signaling that they're done >> they tend to rally after the peak, so that's another amount for the s&p. we do tend to be the market price that in. >> katerina, are you as optimistic about the market and the prospects for the fed?

>> sara, we have seen a lot of conflicting economic data. this is coupled with weaker economic daughters and accelerated earnings while i understand the desire to be optimistic, the market might be getting ahead of itself it certainly will be a difficult decision for them. our strategic positioning has been before we can be firmly in another bull market territory, we need to get through market volatility, because the earnings and the economy is something that has to be considered, and will play a big role into the fed decision, so sectors like health care, like the consumer discretionary staples, the real

estate, utilities, something that will continue to stay profitable, companies that have been able to stay profitable while it's difficult to show positive cash flow consider taking some tax losses, take some tax loss harvesting, but stay defensive under we get in this phase of the bear market, which we still believe we're in. >> why do you believe we're still in the bear market >> there is still some volatility it is hard to ignore that the market is rallies in seemingly irnothings hire i inflation, geopolitical risks that are out there, weak any economy.

for us to be in the bull market territory. the question is, after the fed is done, is it going to get us into the recession and it's going to be, and how long it would last >> that's always a key question. what are your those over earnings season. in terms of what earnings will look like. >> the key, i think, is to watch inventory levels that have give us an indicator here of what earnings will look like finished gets in inventory think of where we were a year ago. of course, we know retail inventories are high as well we've heard from walmart and

others, this is a growing concern. and stock 600 europe companies as well. i do worry about the slowdown, but don't worry about slowdown to which a winning strategical year may continue to work in the second half this year >> through the downturn, which is somewhat unusual. so as we move over the remainder of the year, look for the high dividend players >> thank for joining us. shares of cisco, chairman and ceo chuck robbins joined us last hour, here is whathe had to say about the outlook and at

least the possibility of whether or not there is a recession now or one coming. >> we'll dewith what comes our way, but i'm only reporting what we have seen >> obviously they cleared up some of the issues, and that's in part why they could get a lot of product out with a better than expected quarter. >> it wasn't a demand problem necessarily, but a supply problem. he said we are not seeing a demand shift, which is just

interest, because the market grasples with this question. especially in europe people are so pessimistic about the growth prospects europe we continue to here about strength this morning, one of the positive surprises was asia, and china's been shut down, and the numbers were only down 19% they were supposed to be down more than that >> it's interesting that these companies are not seeing the doom and gloom >> as you know, around the word, and not just the u.s. let's head to a quick break. we'll have a look at one of the biggest laggard, got a downgrade as well. we will speak to craig moffet in

a bit. more on the retailers, with kohl's getting crushed and we are live for you in beijing, as china rations its electricity to factors as the company deals with heat waves. big show still ahead dow is down about 100 points

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around the new iphone 14 >> yeah, you know, i think it's a couple things. the markets have held up well. there's a lot of peer that you get a bit of a disappointment. yell, the markets, the make roe demand is there was also euphoria when with a new apple cycle. so it's given stock a bit more momentum. >> the news today suggesting that's coming september 7th, the new iphone, all the upgrades,

what are the realistic expectations. >> the iphone 14, and the tiktok cycle, this would be a bigger products, i think eventually, beyond the fact you have a new iphone coming out, the debate will be are consumers willing to pie $1,000 for a new iphone. do cable companies find ways to subsidize the iphone, that could be a driver. >> what if we see more consumer demand weakness. cisco is not seeing it yet if that is happening, as people expect, doesn't this run-up make apple more vulnerable to that? >> if you do have high

inflation, then i would great with that, which is iphone purchasing could be given -- you actually worry about the dynamic plays out. so far, you and i -- perhaps if you have carriers. maybe the cost is. >> ahmid, a couple weeks ago you wrote about an advertising push gaining movement tum why you think that might be the case. >> yeah, absolutely. advertising is something we go back to the dade of steve jobs of talking about this business they seem to be -- we think it's

about a 4 billion revenue stream but amazon is up, right? and there's nothing that precludes apple for -- very simplistic, they'll be making the app store as a transaction system, but enabling that to become adiscovery mechanic tis could get them to a business of 25, and the market, it is much larger i think it's an unity appreciated way to monetize. >> what was happening on the demand side.

the supply site, things are getting better, on the demand side, you know, i think what you're seeing is apple -- china's revenue is up. demand is holding up fairly well in addition, i think they're picking up more market share you know, so far in china, you're liking for sign of things going down, it's better than one would have expected a few months ago. >> i guess that's why you're bullish. thank you for joining us. >> thank you. after the break we'll talk retail as for tapestry and estee lauder, jim said keep an eye on estee lauder shares. they are leadership bouncing back we'r in g

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. a slew of retailers reporting, the bigger laggard is kohl's, by far

courtney has more. their quarter was disappointing on all fronts. >> uncertainty abounds there the xrt is underperforming the broader market, down more than a percent. the etf is down more than 6% after it cut i full-year forecast, as they're expected to cut into profitability kohl's the cfo said it is

committed to stinting -- conversely bj's wholesale shares, up 8% now, the smaller warehouse competitor to costco and sam's club soared on strong sales. shares of tapestry lightly higher better than expected earnings, it is up its dividend. china is a main concern there. its current quarter forecast disappointed, and estee lauder share are flat >> and china, rather than specifically a strange on

inflation, we know whitey has held up fairly well. i will interview michelle gass, ceo, later today and whether some of in strength could be lifted, as we watch gases fall at least a little. >> i'm looking forward to it i feel like it's going to be tough in a way she has a lot to answer for, in terms of the fact that there are still investors who think they were never serious about the sale process they ended up with a no-namer who actually couldn't pull the trigger on the deal, all the while the fundamentals were deteriorated she got big on athleisure. people are going out again, and they're not spending sure, cosmetics is a strong one, and the sephora deal is -- but

catering to the middle is not working. i feel it's going to be stuff questions for her, if you're not in ultra-luxury or cosmetics or travel related or wedding-related travel, it's tough. >> she said sales of dresses are doing pretty well, but they are seeing some weakening. they mentioned some supply explain descriptions, and that particular category, but you're right. i think any retailer that caters to this middle-income consumer that doesn't have a reason to come in for essentials, so target may being pick up other discretionary cease i think will really struggle.

kohl's is off-mall that seems has been helped when mall traffic has been depressed. it seems like amazon and sephora are continue to go drive traffic, but will it be enough to offset your point, a consumer not necessarily coming in -- she also pointed out that sales of school uniforms are weak, but we also know that kids grow even if you're not interested in spending money, to some degree, you have to buy some clothes back over to you. >> agreed. thank you. tim to come, we're going to

ask elon musk. why not? this is about the joke partial he had to buy manchester united. could that lead to an s.e.c. violations we'll talk about it as well. plow bed bath & beyond and ryan cohen. we're back in two. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq you'll always remember buying your first car. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness,

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good morning former trump organization's cfo alan wiselen weisselberg is expo plead guilty in a tax fraud case involving the business dealings this morning he could face more than five months in prison as part of that deal, he is expected to cooperate with prosecutors and testify against the trump organization when the case actually goes, but there is no indication he will cooperate in any investigation against donald trump personally.

u.s. traffic deaths jumped in early 2022 to hit a 20-year high, according to federal transportation officials more than 9500 people were killed in traffic crashes within the first three months of the year, experts do not know exactly what is behind that surge, but note that the increase in reckless behavior coincided with the virus pained. an atlas moth with the wingspan of 10 inches has been found in the u.s. for the first time, according to the washington state department of agriculture, which is asking residents to report further sightings. it is believed don't the world's largest moth david, it's a ten-anyone w wingspan. >> that's scary. i would be freaked out, and then the giant hon either that eat being out there in washington.

>> it's like a godzilla movie. >> a place. >> you got it. bed bath & beyond shares, we've been talking about it. without, the selling continues after gamestop chairman ryan cohen filed a november to says his entire stake is the prior performing was back in february and march, again he refiled that, and that seemed to contribute to a buying spree as you've been reporting this morning, it may well be he's already sold, given the timing of the filing. we also have elon musk, of course, the other day joking about manchester united. that stock was sent soaring.

it came down sharply. all of that, the question is, is this stock market manipulation howard, good to have you with us. >> good to be. thank you. i would love to have some perspective. i don't know how well read in you are on the bed bath & beyond saga, but it's strange, to say the least, a company that is really suffering right now, and yesterday its stock price soars because of a lot of people getting tore, perhaps, and decide to send is it higher, and then you have ryan cohen refiling a deed for no apparent reason any thoughts there in terms of what the s.e.c. might want to look ought

it's an interesting questions. it's hard to know whether to see more terrified of ten-inch stocks or the craziness of the market, which i guess is the best word for it it's hard to see it as a standard market manipulation case for that, you have to show there's guiding intelligence, that people are intending to run up the right this happens -- not just bed bath & beyond, but with gamestop, amc, the other meme stocks, to be more of a social crazy. it's like we transplanted the tiktok crazes onto the world of inve

investing. >> certainly for those who are short these stocks, you know, but i wonder, do things need to change in terms of the way we look at these things >> if there are people on chat rooms getting together and bringing together other people to sort of participate in some sort of group project, so to speak, as we saw on gamestop some time back, and as we have potentially seen here, is that not something the s.e.c. should be looking at? >> you raid an interesting point and that's the question whether a keep that damages -- even if it doesn't have the element of fraud lent intent, is something the s.e.c. should regulate the s.e.c. is very concerned about this, the structural

aspects of the market, that capital is being allocated to companies that can use it effectively, but it's difficult. we have developed this vocabulary for dealing with marketproblems that is centere around the idea of fraud and intent, and deliberate conduct that is designed to pump up something for no other reason than to make money on it, and dump it at the earliest opportunity so that other people suffer no one individual may have benefited more from that obviously he was keep in gamestop, chairman of that company, and he seems to have benefited enormous will you from

refiling that options position, and he may well have already parted with. >> honestly, it deposition it deposition if you can show a deliberate keep that doesn't have any other explain ainge, you can easily say i invested when i thought it made sense, and it no longer makes sense, unless you can show he's contributing to the frothiness, it would be hard to prove a market manipulation -- i wondered whether or not there was the perfect fraud, because you did keep your fingerprints off it if you were really an insider,

who was going to benefit, when you submit as actual fraud, that's dangerous if you can somehow indict a media frenzy, sell your stocks, keep your fringe -- fingers prints and hands off the efforts, and make a killing without putting yourself at rick >> it sent the stock higher. is there any viability using quitter that's perhaps sending vesselors into some sort of fury >> i imagine there's a very injure person at the s.e.c. whose major job is to month sore musk, and i feel bats for that

person they have to stay up late and be aware of all sorts of craziness, but i think in this case they were probably recent isaiasier first of all, i think they have build in a musk nonsense discount factor, whether you automatically discount anything he says, so you couldn't really say that a reasonable investor would rely on anything his says. even twitter knows when he signs a do you tcument, he doesn't necessarily follow through and secondly it would be very difficult to show the requisite intent for securities fraud he didn't benefit from the tweet. he qualified it a few hours later, saying it was a joke. you know, it was after hours

even though they's already in trouble for acts, i don't think this will be a hat trick >> he a little keeping it interesting. 40urd, thanks for the time watch out for the giant moths. >> all right thank you very much. and interested in buying coca-cola as well, but nobody took that as interesting. >> no, this man u, you know, it doesn't seem to amount to much he was just joking we took it more seriously when he said he would take tesla private. after the break, verizon gets downgraded. we'll talk to the analyst with the call we're seeing a bit of a recovery from the dow. the s&p 500 goes positive.

it's energy leading today. wti back above 90. utilities, technology, industrials appeared materials all positive the nasdaq has also turned green as the tech trade has also reversed early losses. we'll be right back. (lighthearted music) - "best thing i've ever done." that's what freddie told me. - a person like me needed to get a reverse mortgage to change my life. it was the best thing i've ever done. - really? - yes, without doubt! - [tom selleck] joanne said just about the same thing.

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moffett nathan son downgrading verizon, the firm saying it continues to struggle. craig moffett of moth fednathanson who made the call, why the decision to -- >> you know, there are a lot of things that are i think making the path forward for verizon quite different. in some ways, i heard you and jim talking about it yesterday,

and was thinking, you know, this is a company that las build its entire reputation and customer base on the idea it has the best network, and it charges a premium for having the best network, but it's still charging a premium. in some ways ear competing against a t mobile that's cheaper and has a better product and they're sort of being amazon, if you will. it's heart to retain customers, attract customers and grow your business when you are charging a premium for a product that just doesn't warrant the kind of premium it historically did. >> let's dig in. you say they don't have the best network anymore. i would assume they would disagree what is the basis for that conclusion on your part? >> t mobile has a spectrum advantage in three ways. first, they have -- and this is

primarily in mid band spectrum, which is the frequencies that give you the best combination of coverage and speed first, t mobile's spectrum, they have more of it. that means bigger blocks of spectrum at higher speeds. second, they have it earlier, so verizon is still waiting for big blocks of spectrum that they bought in the so-called c-band auctions about a year and a half ago that will -- some of which they have now, but some of which they're waiting to see they are behind in terms of timing at which time mobile's spectrum is also lower frequency. that means better coverage within that mid band range with fewer dead spots you're starting to see that for the first time where t mobile is not just the fastest, but has better coverage than verizon, which is unique.

again, i'm speaking specifically about 5g in lt or 4g, it's something of a draw >> there's not much growth in the industry at all. a lot of it is going to t mobile at&t's stock is flat for the year, it's outperformed the market. >> i think there was a natural flight to defensiveness, as the tech stocks got killed in the rising interest rates. so i think there's a lot more to do with sector rotations than it did with anything specific to the companies. at&t faces the same challenges, and we actually have almost as much down side in at&t shares as verizon. the reason we are -- we're a bit more pessimistic about verizon here, at least as an equity is that it has more institutional

sponsorship than at&t does expe expectations are still somewhat higher for verizon we think there's probably more downside risks for our estimates, but i wouldn't want to suggest that at&t has an easy path forward, either they don't. >> speaking of paths, and i need a quick answer, it doesn't seem like anybody does. i mean, the cable guys you dover, they're getting competition from t mobile in terms of fixed wireless, they are then competing with the wireless companies are there any winners here >> yes, i actually think there are. i think the cable operators are actually in pretty good shape here

they are facing more competition than fixed wireless, but oerchl have a longer runway, and at the we'reless business that the cable providers are captures is a much bigger industry i think t mobile is the band in. i think t-mobile is the best name of all of them, but i like the cable stocks here as well. >> as you say, perhaps a conversation for another day but a nice way to end it given it's the only equity in comcast that we can in thank you. >> thanks, david. >> being compared to amzon too companies soaring after posting better than expected results in guidance a chip maker, leading the semiconductor etf today, up 27%. sort of a play on electric vehicles as well more ahead on "squawk on the street." stay with us dow continues to recover as s&p and nasdaq are positive.

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heat waves in chin, causing the country to ration

electricity. >> china's top weather authority has issued a high level alert to expect drought conditions to worsen over the next three days. the country has been battling record heat waves, not seen since 1961, which have been parching provinces all along the country's longest river. the areas both in central as well as southwestern china rely heavily on hydropower. authorities there have been ordering power rationing for factories and supply chains. factories are being told to suspend or reduce operations, cut working hours, or grant high temperature holidays to staff, and to limit electricity until august 24th. now, the area is home to suppliers, to apple, intel, tesla, and toyota. and right now the rationing is supposed to end by next week however, the authorities also say that the drought conditions could last until september it's really unclear exactly when

it's going to end. >> i know they're worried about the rice harvest as well amazon joining the battle against tiktok, testing a new feature to boost engagement. kevin mayer is joining me later on closing bl.el 3:00 p.m. eastern time and we'll be right back here on "squawk on the street." stay with us

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cnbc out with a new news letter leslie picker is here with the highlights. >> peter krause, believes the active management model is broken he thinks it charges clients too high of fees regardless of performance. when he launched his own firm, he placed a higher emphasis on pay for performance. he told us in the interview we did with him, the existing model in almost all cases rewards people whether or not they perform so it's a fixed fee. and as assets grow, they earn more money he said clients don't actually hire them to grow assets they hire them to perform.

now, 30% is charged for any outperformance against relevant bench mark that's higher than the hedge fund standard than 20% incentive fee. it's a base fee, comparable -- a third of the fee charged by a traditional mutual fund. with higher stakes to perform, krause says in the current environment he's focused on bottoms up stock in eye picking with sustainable growth. since inception, six of 11 funds have delivered alpha above the bench marks. we spoke with krause for the latest edition due out today to see the full interview, scan the qr code. >> leslie, thank you very much. as we head out, just want to show you what's happening, technology has actually turned higher, it's being led by cisco

for a change, best stock move since november 2020. the stock is up more than 6.7% now. embracing the revenue beat of course the commentary by chuck robbins who came on "squawk on the street" an hour ago, talking about a better supply chain environment and no real sign of weakness in demand. looks like investors are embracing that stock as well nasdaq positive. that's it for us on "squawk on the street." i'll send it in to "techcheck. good thursday morning, welcome to tech neck i'm deirdre bosa, with david faber going on hour three, welcome, david, carl and john are off today. legacy tech makes a comeback better than expected results what the quarter signals for the overall market softbank struggles continue. we will discuss what that means for how investors are thinking about a tech