you were like, monday, i'm not really sure, but you showed up, and we appreciate that andrew, you did too, final check on the market. we're down about 330 points. crappy start to a week down almost 200 now on the nasdaq we're going to do it again tomorrow and you'll be there, andrew? >> i'll see you tomorrow morning, sir >> we'll be here >> make sure you join us good monday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber nasdaq prices are surging. a busy week of tech earnings of course fed chair at jackson hole on friday s&p and nasdaq each ending four-week win streaks. >> meme stocks will survey in

focus, amc's preferred units will begin trading under ticker symbol "ape" today and bed bath shares continue to tumble after amazon potentially joining a bidding war for signify health, that stock is surging in the premarket. >> markets on track to open down sharply. fed rate hikes of course in focus ahead of jackson hole. jim, is jackson hole the story of the week? >> i think everyone gets scared, optimism, because we have wage inflation, we have food inflation. we still have a lot of the issues involving the supply chain. when you read through any research, it's always about, can't get parts, absenteeism, can't find workers that's been the narrative underneath the nice rally. but the problem, carl, is with the exception of a couple of key stocks like a bed bath, when i look at the fundamentals, look, we just got an amazing quarter

from deere, amazing. foot locker, i expected a bad quarter. i didn't think mary dillon of volta would come in. dell, crowdstrike, boosts price target palo alto, that will be terrific unless you're doing peloton or unless you're doing bed bath, or docusign, you don't have enough negative stocks to be able to justify the futures. >> okay. so you still have concerns on the macro level. >> right >> but statement you think the fundamentals of a number of these companies are pretty strong based on what we've seen in the earnings. >> exactly so i try to deal with the fact that i have cnh on tonight, a really big farm equipment company, case new holland. their business is really, really good deere's business is really,

really good. when you think about, david, the idea that the grain complexes come in a little, they still have powerful numbers coming up. why would i not buy those stocks into any futures-led decline >> last week you were not as positive as you have been. >> no. seasonally it's bad. >> we had a decent call, ended the week down. >> seasonally it's a bad time, you have to let it come in carl, there was someone who said some positive things, i said, why didn't you just wait there's nothing burning. or a person recommended vips, the vip shot chinese stocks, dartboarding, vips, i'll recommend vips, as opposed to jd. no, don't recommend vips, just

let it go away you've gone 760 people have covid and he's got zero covid. no >> morgan stanley this morning basically says, look, we're in a period where there's not a lot of corporate commentary, wait until conference season begins in early september then they cite mike wilson, then you'll hear more macro worries >> i disagree with mike, i think supply chains easing, the futures are doing the job mike wants. mike might be surprised the futures will take the markets where he was hoping, believing in, i shouldn't say hoping, and then when the companies talk, you're kind of saying, it's not as bad as the stock has moved. i like his call that the market's going lower i don't like his call that when we start getting together, that things are going to be bearish because the companies that we do hear, cisco, deere, a pretty good range, foot locker. >> amat. the amat call was basically, we

have more business than we know what to do with. walmart, i've been negative walmart, walmart delivered >> these are delivering on what had been reduced expectations as a result of the previous quarter where it didn't go well. walmart, cisco, then things got better >> but cisco was good. >> it was good based on the fact that people had rolled back their expectations because of the supply chain issues they had 90 days earlier. >> but chuck robbins would have said, i didn't do anything other than what i said i was going to do >> that's true i like that. >> what do you like? >> cisco, i liked it, it was good 3, 4%. double digit growth in some things it was good. a good quarter what are you looking at me >> i look at you all the time. >> still, don't look at me hostily. >> it's the nonverbal power he has, it's insane

>> party city, wheels up >> really, you went there, wheels up? >> that was a quarter where when you read it, you think they're flying high but then when you look at the cash position and they're not flying high, you see they give the pilot stock in order to retain them, i don't know, i don't think that's retention. what >> there's a lot of demand for private jets it should be good times. >> it should be because regular jets are bad but you need to maintain your -- i'm just looking at the cash picture. i'm noticing cash that's depleted, depleted, depleted no one wants to talk about it. when you look at bed bath, what a good skedaddle by our friend ryan cohen, who is not our friend at all, i'm just doing that gratuitously, because that balance sheet is awful >> in aggregate, corporate debt to equity is really good >> yes, but you have knuckle heads who spend a lot of money on common stock when they should have been worried about their

company. >> yeah, it didn't go well here. continues not to you weren't here for the final -- you weren't here friday it final came down sharply because we told everybody, it had already sold, and then he confirmed he had sold everything >> i thought he was going to hodl do you know what that is >> umm, no >> hold on for dear life >> i knew it had "hold" in it. >> "ape. >> this morning you've been tweeting about amc >> adam aaron loves to do those great ongoings he should go to cineworld and say, listen, i'll take 500 regales off your hands and you can have eight preferred, which is the same as -- maybe he can use it >> he's done some -- remember when he bought part of a gold mine >> i'm waiting for that to pay off. it's early very early gold mines often have copper too, but that's going down in

price. regal is a lot of -- there's 500in50 ing regales. >> their biggest competitors >> why not buy them using ape stock? >> is the weakness about ape or about cineworld? >> people are confused, they're getting ape stock, there's no dilution i tweeted cineworld but it could be just general confusion because the people who are involved, who own ape stock, tend not to be -- benjamin graham >> i would argue they're buffett. adam would take issue with this but there may not be that many people who fully understand exactly what you're getting. what you're getting is a new share, almost like a split i want to try and understand, jim, though, is that decline a result of the fact that the ape shares are going to begin trading in 20 minutes? >> i think it is >> that's what adam told us yesterday.

>> plus bed bath has made that same group of consistently brilliant investors who have defied everything very excited bed bath, you see what the guy tweeted this morning, this is what we've been waiting for. very similar, i like to use that analogy, when frank wright, they were down by 32 points at halftime, he said, we have them where we want them no, we don't have them where we want them. ryan cohen blew out of the stock. he's got three guys on the board which i know he's not allowed to talk to. and i just -- all i can say is, this could be a windfall for some very good law firms they may be the winners. if we could buy shares in law firms off this bed bath, we could do so. >> it's not clear exactly what he did that could be -- that could lead to him being legally liable he's not an insider. he doesn't have a duty there he's not in the possession of material nonpublic information >> he probably didn't speak to

these guys because they're all independent. >> what are you going to prove manipulation how are you going to prove that? >> david, let me give you a little insight >> please. >> it doesn't matter it's the justice department. >> the justice department would be criminal. i don't think it will be the justice department the sec -- >> you act -- >> i disagree with you >> you're coming up with a thesis that says you're innocent >> well, typically beyond a reasonable doubt when it comes to the criminal department of justice, yes >> david, you ever hear of a subpoena >> i've heard of plenty of those things >> you're going to see a little subpoena action. >> it doesn't mean anything is going to happen to ryan cohen. he's going to sitting on enormous gains >> i would hire a lawyer just in case they call, with the idea that i blew out of the stock at a brilliant time and the company wasn't able to sell stock. the cfo sold stock, but he had a program. now, we're going to have sue

gove on at 10:00, the ceo? no she's not coming on the 10:00, or the 11:00, or the 12:00, or the 1:00, two, buckle my shoe. >> we'll watch the memes all day today, those two big ones wiping out a lot of the rally in the last two weeks as for adam aaron, jim, he came on august 5th and explained the motivation here is what he said >> with the creation of this new class of preferred securities, not that we would ever use all 5 billion of them that we could take to market, that would be crazy. but we do essentially have a lot of preferred shares that we can take to market to raise cash, to pay down debt, use for m&a and the result of all that is, this was a great announcement for amc.

it pretty much takes near term survival completely off the table because we could raise money. and anything that strengthens amc is good for our shoulders and bad for the people who wish us harm. >> on the back burner is the notion that q3 has a weaker film slate, let's say, than the summer >> yeah, but i think he's doing quite well "bloomberg" had a good article on him i think he is in the ideal position to be able to buy as many regales provided our friends in the justice department, jonathan cantor, doesn't think there's a lot of antitrust if you buy a lot of theaters because otherwise the theaters might close this is fantastic for adam, fantastic. >> he's navigated this period well >> he's good he knows what he's doing >> rich greenfield tweets at us, he wants to debate, 1.034 billion shares are outstanding

as of now. back in 2020, 104 million shares out. so they've increased their share count by tenfold >> so what the company's alive. >> it is alive >> cineworld is struggling to stay on. i like regal films, they're nice theaters regal's not making it and adam is plus adam's got ape stock. don't you think cineworld would take ape stock they would take chimpanzee stock. >> you can give ape stock to anybody. >> jane goodall. >> she's a fantastic woman nothing to do with the apes. >> we would be in much better shape. >> thank you was that the ira >> the inflation reduction act no, it didn't have anythin about jane goodall >> i would have put her in that. when we come back, amazon reportedly among those bidding

for signify health stocks way up this morning a bunch of calls on nvidia, netflix, dell, ups, although futures are weak to start the week a lot more "squawkn e re" aent. oth ♪♪ ♪♪ ♪♪

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bidders. previously cvs health had been said to be eyeing signify, jim, getting interesting. >> this is jassy's imprint i think jagsy recognizes there's a way to be able to do a better health system than we have what is amazing to me, david, is there's this thing, signify, it's out there eh, kind of just not a juggernaut, just hanging out suddenly four companies want it. i mean, what do they have? >> i don't know. i don't have much to share, unfortunately, on the process itself we'll rely on "the journal"'s reporting here but it's a good question it's also interesting to note that amazon is doing that one medical deal >> right >> we mentioned it that day, and the fact that they've had a couple of efforts in health care that haven't really seemed to make a lot of -- get a lot of traction but they would seem in this case to potentially be willing to take on the resistance, let's call it, of the ftc if it should

come there are plenty who believe one medical will face at the very least rigorous examination you would expect that were they to win this asset, that they would also get a very significant examination from the ftc on antitrust grounds whether or not it's deserved but they seem willing, judging at least from the journal's reporting, that they're looking at it to say, bring it on. >> there's this app, athletic app, connected with quest, with the metaverse, that the ftc is against it >> quest diagnostics >> i'm sorry, the meta thing i was hanging out with him >> the meta. >> the meta. this guy is punching you and you're punching him. they wanted to add to that and the ftc is trying to block it.

>> you're talking about the meta deal >> it's a tiny deal. >> it is a small deal. >> why are they spending so much time on it >> because they feel it's going to be an enormous market and they think they'll look back and say, why didn't we prevent him from -- >> the stock is in the metaverse, getting pummelled >> the other antitrust interesting wrifnkle here is unh is also a potential bidder for signify, they're in the midst of battling the government. they're actually in court, it was the vertical nature of that merger, they were really not on the horizontal front with the divestiture. it would seem to indicate perhaps if unh is trying to buy signify, that they think they're going to win, because the two would potentially work together. >> the agencies are in aggressive mode, the biden

agencies, they're fulfilling their mantras everywhere you've got ferc out there. manchin is trying to get a bill through that will make it so it's more easier to get pipelines. ferc is on the warpath against pipelines. and the ftc's on the warpath against everything the agencies are tough as nails. i think the companies are misreading it. >> speaking of ferc, we'll get to oxy and buffett getting the green light for nearly half. a bunch of software earnings headed our way in the next few days jackson hole on friday we'll get to kramer with that and his mad dash in a moment and nus. ialnsenbelln ig t mite

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all right. a little more than seven minutes before we get started. a week's trading at the nyc. the mad dash, ups. >> this is an interest piece called "transports: the run has been fun." ups, cni, a bunch of them. ups is most problematical. why? it's been a monster. it's outperformed the s&p by 850 points, fifth best transport stock under covers what i don't like about this call, david, is this is kind of like, all right, stocks had a run, let's go. when in reality, if it's doing really well, you don't need to trade it like this stocks had a run, so you sell it at 204, buy it back maybe at 180. this is a trading call as far as i'm concerned. i think that people at home who own ups should just ride it. >> are there some impending

labor issues, union contracts, things like that >> there's teams ter, that coul be difficult in "the new york times" this weekend, a piece, ups drivers say brutal heat is endangering their lives. i want to tonight out, if this company has run its course, then you should sell fedex too, if you sell one, you should sell the other. these are trading calls. i'm not crazy about trading calls. i don't think our viewers at home really know how to get in and get out of ups, it's just not right. a good long term story >> so hang there, ignore what may be a little downturn today >> 180, 190. a hedge fund should call and say, i'll get out here and buy it back. it's a good hedge fund call. >> except it may be a wrong call >> it's hedge fund this is different from a meme stock. this is a real company lots of people who work there,

good dividends, good balance sheet. >> don't go a day without seeing an ups truck >> no sleight of hand, no guy saying, hey, sayonara, i never spoke to you anyway, whatever. >> and hodl. every day i learn something on this show. opening bell, five minutes away. remember, catch us any time and anywhere listen to, follow, the "squawk on the street" opening bell dct.

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occidental pulling back in the free market following that 10% gain on friday following news buffett's berkshire had received regulatory permission to buy 50% of occi buffett is not expected to bid for control of the company, he hasn't communicated that to management, which would be his style. >> right, this is a beacon in that it had a bad balance sheet and he got involved.

they're still drilling this is as close to a creeping tender offer as they've seen in a long time. and they're saying it's not going to be. >> no. we had wondered whether or not he would go for the whole thing. >> right >> given how much he clearly likes it but it doesn't appear that he is that's based, again, on "the journal" citing people close to the situation who indicate there are some benefits to going over 20 in terms of being able to consolidate certain things, and the dividend so there are some other benefits to that. and obviously he likes the fundamentals of the business, no doubt about that to his credit, remember that preferred that he bought i mean, when they -- just to help them finance the anidaco deal and the ge preferred

only buffett gets those deals. >> those are classics. let's get the opening bell this morning, the cnbc real time exchange, at the big board it's centerpoint energy celebrating its 20th anniversary [ bell ringing ] speaking of energy, jim, everyone's talking about european gas today and our own gas about ten. >> people have to understand, we are an exporter but we're not such an exporter that it is yet impacting our prices a lot of it is bottled up natural gas, places who can't get natural gas. our country has a long history with natural gas, we just can't get it where it needs to go. >> you talked about the pipeline issue. >> senator manchin talks about that, there's supposed to be a follow-on bill where manchin gets to get a pipeline through west virginia, which would lower the price of natural gas

it would be like an inflation reduction act part 2 >> right but europe is where we tend to focus when we talk about natural gas. >> $70, natural gas. >> the russians continue to cut the flow they're trying desperately to fill up as much as they possibly can ahead of the winter. >> right >> and source new ways to get -- gas tankers, for example, to the coast, in short supply because you can fill up l&g in a tanker and send it over as we know here, our two main exporters, chenier and freeport, a private company, freeport has been offline because of a fire, won't be on until october. >> you can buy symbol ee, they have the floating boat there was always this fear this would be not enough refinery room for natural gas this company could take that off

the table. there is a way to play the shortage i just think you can't necessarily calibrate ours and theirs because we don't export enough yet that would impact the stock price. but there is strong demand we talk about how hot it is. david, during the commercial, actually admitted to me that there's heat happening everywhere, it's a little hotter you're attributing that to what? coal king coal? >> we do discuss -- listen, climate is a very important subject. i think we can say >> page 1 of "the journal" has a huge piece open global drought, how it's taking some of the established countries around the world to task. >> don't have enough water to run. >> don't have cool water, water temperature is an issue. rivers are becoming impassable because of the drought

these are significant issues lake mead has never been lower >> you read them and you think, okay, that's terrible. then you realize, obviously human impact, but commerce is impacted everywhere because we still use rivers for commerce. >> oh, yeah. >> the piece about union pacific not being able to get workers to come back. >> where was it? >> the redo of the icc >> yes >> is saying that -- complaining to union pacific that they're not moving freight and union pacific laid off a lot of people. in the old days what used to happen is when you lay them off, and when you need them, they come back. now you lay them off and they do something different. >> airlines can tell you something about that they panicked, maybe for good reason, in the middle of the pandemic, and all those pilots that retired, maintenance, flight attendants, you name it,

is why it's so difficult to fly now. >> i talk to so many ceos who say it was such a life-changing thing, people retired and didn't come back. what i always say is the same thing, do they really have enough money just to retire? particularly with wages going up and it's not really a factor it's kind of like, david, they didn't like the job. they don't want to work on the railroad all day long. >> right i don't know the answer to that in terms of if they can sustain themselves without actual wages coming in every month. it's a good question >> when you speak to greg hayes, he needs 5,500 engineers well, get in line. everyone needs engineers the inflation reduction act, that is like an engineer's paradise remember gangsta paradise? >> you're coolio, that's great >> remember coolio with gangsta

paradise this is that kind of paradise. >> no, you're right, 7,000 construction workers are needed for the intel chip plant in ohio where are they going to find them >> where are we going to find those people >> it's not going to be us >> will texas send a busload of people up there or is it not a sanctuary state? >> it wouldn't be the worst thing, would it? greg abbott keeps sending them all here >> he's a different kind of guy. >> "a" preferred now up five >> it's too early. every semiconductor company. we should talk about semis for a second every piece says the same thing. there's a big reset. then you're reading applied materials. gary dickerson, total straight shooter. the demand for these, you know, he's got demand right through 2023 so if it's a total reset, why

are they ordering so much? perhaps it isn't a reset maybe it's just a reset of the stock, not of the business applied materials has a plethora of work. they have more insight than the analysts do. >> right >> and the analysts are clueless about the business they're looking at the tape and they're reacting with great fear, ooh. that's what it's like in the meetings ooh. >> speaking of the tape, jim nasdaq is down 1.7%. i do see some of your favorite names. ford is down 5.6% this morning >> a lawsuit there >> right a lawsuit. >> yeah. a lot involved in that lawsuit >> 1.8 million >> all the auto companies have too many people. look, the autos are front and center right now you're still getting a 2.8 financing.

if the fed raises rates, that is meant -- that's going to hurt cars because you need that financing. and they can't find the cars anyway because there are not, as usual, enough chips. a lot of these -- like, i don't know if you guys read the deere quarter or the cnh quarter there's a lot of almost completed vehicles in this country that lack a semiconductor for an axle. so they sit there and they have to be financed and it's bad >> they even have a name for it, right? a car that's almost done, just needs that one chip. >> almost done, it's just reverberating through their balance sheets and you don't know who the chip is, the companies don't talk about it a lot of times what i hear is that the chips are with brokers, they're not with the actual makers and the brokers want a huge amount of money. so you're waiting out the brokers, hoping they come down this is day to day, right now. tremendous amount of bargaining

with the brokers not the actual foundries hence, why we needed what's supposed to happen in ohio tell me about ohio >> what would you like me to tell you about ohio? >> from the movie "the patriot." >> i didn't know that. i know "why, oh, why, oh, why did i ever leave ohio. >> "my sister irene. why did i leave ohio no >> no. what i just quoted is from a famous musical >> yes, it was "my sister irene" put to music >> i'm forgetting it, though >> i'm sorry elon musk. >> carl knows all that stuff >> maybe i'm wrong >> musical theater is not your thing.

>> elon is tacking on $15,000. and there's no worries there's no worries if anyone else did that, it would reverberate so negatively. he doesn't have a salesforce, he doesn't have anything. >> we're very focused on the apes >> there's a lot of them there's more apes than apes in captivity. >> it's a week since unity said we're moving forward with that deal >> did you see the stock what is that about it was down 25% last week. >> typically you would get an answer from the company in terms of, all right, we're going to try to come at them with a new deal of some kind that might appeal to them in a way the previous offer did not, perhaps it would contain a significant amount of cash it's hard to come up with a structure in which you could improve on something where you're willing to give them 55% of your company that didn't include cash

one would have to assume that was the case it seems like it would be a high bar. to your point, the stock keeps coming down. the fundamentals are in question >> this is a metaphor for the market this is a company that sells at 84 times earnings. >> applovin is >> yes down 72% it is a technology company that enables developers to market, montage, analyze, and publish applications i have 20 of those you want one i mean, you know, it's like new york, tennessee. >> right >> these orange properties no, it's actually more like oriental, there are so many of these, so many companies that do the same thing, they should all merge. >> so you think they all should merge? >> when i have a stock that's down that much, and if i were on the board, i would say, guys, we have to take radical action. not radical acceptance that's more psychiatric.

>> we're not hearing from applovin >> who is on the darn ten already? >> i don't know who's on the ten. >> unity roblox who is on the ten? who is on the 11 >> i'm glad you're programming the entire day here. >> i love the 11:00. >> that got past me. >> the 11 is good, man >> speaking of a lot of these names, this week we'll get zoom and salesforce and nvidia. snow, right? >> zoom has to think about something to do and not have an existential issue. marc benioff is coming to town, don't know exactly -- everybody thinks their cycles are elongated. >> wait, marc is coming to town? which town >> marc benioff. >> i thought maybe he was coming back to san francisco. >> no.

he's going to be here. i want him to be here for the show, but that would be too much fun. >> he should come here why wouldn't he? >> all right marc, please come on the show, marc >> in person >> i have him for "mad money." >> this show >> that's a sacred site for a bunch of them. by the way, verizon raised its dividend, what, 16 years have you seen that stock, david? david, you used to think that was a 45 to 55 stock you don't feel that way anymore. >> i have never made a prediction on the stock price, as you well know >> but did you read that piece last week by moffett >> of course, we discussed it quite a bit, we even had craig moffett join us in the 10:00 >> i don't presume everyone watched that show. >> there continue to be a lot of

questions as to whether or not t-mobile is going to be the dominant provider in some way as a result of being able to offer service given that its network quality offers service at a local price level that will take customers away, not to mention its competition with cable when it comes to fixed wireless everybody is at everybody's throat in this business, which is good for the consumer >> this piece about verizon does mention what you said, which is that charter and comcast, our parent company's network, buy this stuff >> they're allowed to sell wireless service to their customers. those are growing fast >> inexpensive price >> yes >> same network. this is a battleground, t-mobile is doing really well, that's a big hedge fund cluster stock a lot of hedge funds in that, shorting at&t. how is warner doing today? >> warner brothers discovery down 2%. >> that's not bad.

>> john malone is a significant holder of warner, said he expected a significant downdraft. obviously many people expected a significant downdraft as a result of at&t shareholders saying, wait a second, what is this, we don't want -- you know, we don't want the stock any longer and so the flowback issues were significant. however, the stock is off significantly since the last quarter in which they lowered their precash -- they're ebitda estimates. as you pointed out many times, the company does have a significant debt load. >> bad balance sheet, terrible >> at some point we'll hear from david. >> speaking of bad balance sheet. >> tell me >> bad balance sheet and beyond. >> you're back to that >> i'm back to that because 13 million shares have already traded and there's only 75 million shares outstanding, and it's 9:44. i mean, come on. >> stocks coming off its lows.

>> don't you think if you're the ceo, david, i ask you, wouldn't you make an appearance and say, look, i want to calm everybody down, all these stories about us not being able to get merchandise are all wrong, and i want to say that point blank >> you want to make sure whatever it is you say is true >> what are you implying >> i'm implying that you don't want to put yourself in a position where you would say positive things that aren't necessarily the case >> even if we don't come on? >> correct >> a statement in itself >> imagine, yeah, general counsels would have a view on that >> too early >> i invite sue gove or anyone on that board, especially the hand-picked people by ryan cohen, invite them on to tell their story. i remember at this time last year, great balance sheet, very interesting private label, i don't know if you've been to that great store >> i haven't been to bed bath in a little bit

you need coupons whenever you go, apparently >> i got very few coupons in the last year. you didn't really go there with the coupon, sometimes they gave you the coupon if you didn't have the coupon. >> friday we talked about kohl's warning about inflationary pressures. >> kohl h's is a good example o the alice and wonderland world we're in and to her credit, she came on they made a commitment to the dividend, the dividend is sacrosanct but their cash position is $220 million, so why would you make that statement, why don't you just say, listen, we're doing our best david? >> carl? >> david >> meantime. >> chet? >> jim, the ape shares were paused and then resumed and then paused again i'm told just resumed again.

>> oh, so adam really is -- he wanted to be the focal point and he sure is now we just need to see regal make that call come on, regal, make the call. cineworld. >> you want to let things settle a little bit before you make a bid for a bankrupt theater >> i would take ape stock. would you take real substock if you were a pilot >> i don't know. >> we didn't talk about mary dillon >> it's up 270 a share >> they're underrated. webber is a meme stock you got to sell something. i have a webber. am i supposed to get a new webber >> everybody has a new webber. >> what do i need a new webber for? will i sabotage my webber so i can buy a new webber >> dell has been the beneficiary of a couple of calls

>> webber has no enterprise. >> today it's evercore >> that's a good call. they've had a good quarter last week, target i thought was good in light of what the -- they got rid of all that merchandise. i'll tell you, there were a lot better quarters that were good, a lot of good quarters versus bad quarters but europe was down, germany's down, woe is me. we're so woe is me right now, seasonally bad, it's tough to come to work right now >> really? >> no, i'm just saying >> together for the first time in i don't even remember how long >> we don't have good things to say to people. i try with target, i try with walmart, i try with cisco, i shot me down on every single one of them. >> without saying a word >> every one even though you're having a good time in real life, you have to throw cold water on all the things i like. >> i'm sorry reality bites.

>> a quick reminder, you can always get in on the cnbc investing club with jim, find out more at cnb cnbc.com/jointheclub treasuries got to 2997 this morning. we're down 400, risking the first back to back 1% declines for the s&p since early june back in a moment my finances were all over the place. and my banking relationship was getting... well, complicated. hahaha! so, i broke up with messy accounts and moved my money to sofi.

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got some volatility on the debut of amc's preferred multiple halts so far. only began a few moments since they began trading up 37% getrinwi j ia imn minute

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and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. let's get to jim. >> sometimes i look for a stock that's all good.

the bottom is pepsico. fantastic note from morgan stanley about why there's top line acceleration, raising numbers, doing everything right. so if pepsi can hold here and rally, then i think we're a little further along in this nastiness, which is going to last for a while, but i just think pepsico is the one to watch because that shows you where money wants to go. which is it's slowdown money with consistent growth north of 5% >> dollar's on pace for the best year since '97 >> unbelievable. when friends go to europe, they don't -- >> don't what? >> too hot >> but it's nice to pay for dinner and have it be relatively inexpensive. >> they're not coming in >> your relatives aren't coming in it's the climate change over here >> will you stop it? just because i said we're the jimmy carter, the saudi arabia coal

>> that was 1976 >> that was why we have 40-year plants that are being phased out. >> nick, then scott wine from cnh, this ag complex that everybody's so worried about you've got to know what they're saying what deere's saying. the quarter was remarkably good and they are characterically humble, but there's another one to watch because the numbers are good and foot locker, really divorcing themselves from nike >> well, they both have digital strategies nike's trying to go direct not trying, they are >> you're more upbeat at the end of the show. it's kind of a clock with you. you didn't disagree with me at all. >> it's closer and closer we get to you leaving >> see you at 6:00, jim. >> wide open >> you won this. what do you care. >> "mad money," 6:00 p.m.

eastern time we'll keep our eye on ape. off to a volatile start. as for the markets, worst day for the s&p since june 28th. don't go away.

good monday morning. welcome to another hour of "squawk on the street. live at post nine of the new york stock exchange. morgan brennan's on maternity leave. busy week ahead. jackson hole on friday we're going to get software earnings and pmis, but the sellers are out early. dow's down 416 >> we're about 30 minutes into the trading session. here are the big movers starting with signify health. along with united health group more on that story later this hour, but currently shares are up about 38% plus netflix downgraded saying netflix is likely to underperform the s&p after

surging 40% from its mid july lows shares down about 5.5% and we'll end with none other than the meme stocks. volatile once again after amc launches its special ape preferred share to holders of amc stock today. those shares down about 32%. but the economics are kind of dif divied up. you've got what was once amc now divided between amc and ape so the economic exposure is divided by those two things. so you would expect to see the stock decline today. >> add them together i think we got the ape somewhere, too, right? 12.31. eight bucks. you're actually better off than you were on friday's close >> right >> but they can't issue more common so they're issuing this maybe it's a way for them at some point to issue more of this to raise money >> that's been the justification

that both the company and you know, wall street analysts have used in terms of why they would do something like this pay down debt. potentially do more m and a. so at that point in time, it could be diluted so you see basically trading close to being in line maybe a one percentage point difference >> you've got bed bath which is up now after a volatile 30 minutes. >> you walk in and think you know what the story is, but if the last couple of weeks mean anything, it's that that's not always true. >> enormous volume in bed bath, which has been typical of that state. which is why ryan cohn was able to sell out from a 9.45 million share position stocks are lower to start a new week of trading. the s&p is coming off of what was its worst performance of

nearly two months. let's bring in mike santoli to talk about the recent pullback i usually like to talk to you fundamentals you mentioned 4200 on the s&p a lot. we've broken below it. >> 4170 if we want to get specific the reason for that is it's essentially the early july, early june highs it would have made it look like you were still in a breakout now we are below that now at the moment, too. so if it was a really strong, persistent uptrend, everybody says you have to take a breather and pull back. you would have just pulled back to that area, give yor take. we're there now. also if the rally was anything more than a reflex bounce, you want to keep at least half of it so another 2 to 3% down before you have to say that was just a mirage that helped equities rebuild

some of their losses from earlier in the year. and a little more agitation about whether there's a disconnect between the markets expectations, the fed and what the fed's going to do. i'd say it's a perceived disconnect apple has been a sector of one it has not traded with faang, megacap growth it's even outperforming today and has gotten to some extremes in terms of weighting the market then utilities so you would think they had this broad rally off the lows and it's this funny mix of industrials. been hard to pull out a clear message from the tape except it's a confusing time and the market reflects that >> is the fact we're kind of reaching the end of summer a big catalyst here? september, october, maybe weaker just seasonally?

>> seasonal effects don't help at this time of year now, that being said, we went almost straight down for most of the first half of the year it didn't seem to obey the specific cadences month to month, but yes you have the hangover from friday's expiration. late august into september, you have seen some weakness in recent years and then the jackson hole speech by fed chair powell even though we kind of know what we're likely to hear and today was no different than friday in terms of expecting that. >> we're about 95% of the way through q2 earnings season are we on revision watch now numbers have been tweaked down for the next four quarters or so >> we are. most of the revisions tend to happen during earnings season so i think you've stepped down a little bit the perception is you dodged a bullet with second quarter results. they were better than expected across the board pretty much but maybe it was just a delayed

effect we don't know if that's the case because keep in mind, we're almost two-thirds of the way through the third quarter and haven't seen the realtime economic numbers to say things really fell apart. we'll see if they hold on. >> it's hard to believe they're just around the corner persistent earnings season mike, thanks for more on the markets, let's bring in destination wealth management ceo, mike and margie patel, guys i'm wondering how you're thinking about jackson hole thematically because one narrative is that they'll use it to reenforce their inflation resolve, but the minutes suggested there's equal worries on the recessionary side, too. >> well, what it said to me and i think it's why the market has a little uncertainty here. it seems like the fed doesn't have any better grasp on their interest rate policy than we investors do they don't know how much to

raise rates to bring down inflation. they don't know if they raise rates too much, that will hurt the economy. and they don't know the timeline how long will it take from their actions until the market inflation, economy, reacts it says that's a little bit of uncertainty because we thought they were in charge. and they seem to say well, gee, we're looking at the market just like everybody else does, trying to figure out what the effects of our actions are that doesn't make the market feel very confident, frankly >> how does it make you feel, michael, through whether it's their fault or not, that their radar at the moment is a little cloudy >> i'm not that concerned about it it's going to be cloudy. economic protections are always really a dicey game and it's going to take time are they guessing right on a month or quarter by quarter basis? maybe not. but it's really more about the cycle. they've been raising rates for a while. still talking about raising rates so i'm not terribly

concerned this their lens is so foggy and the federal reserve, in my view, is taken pretty strong action. the extent of the rate increases have been significant so i think the fed's trying to do the right thing, trying to combat inflation with whatever data they have. >> margie, how much of this do you think is priced into the market saying this morning it resembles both a bear market rally and the end of fed hiking cycles and just because of course it could be the end of the fed hiking cycle, which i don't know if the market knows we're that close to that. doesn't mean stocks can't decline from here, right >> that's right. i think what we had in the first half of the year, market was expecting the fed to act aggressively and then by the end of the year, be ready to ease and we'd be off to the races so we had a big drop in price

earni earnings ratios from 21 times to around 16 times, making the market look attractive earnings were okay, but as far as the future, i think people are more concerned about earnings slowing down. so if we have slower earnings, then the market could go lower pes are priced right, but the earnings start to fade and that could pull the market down a bit and again, that comes back to what is the effect of the fed's actions on the economy will we see the real slowdown occur rather in '23 and have a more severe recession. >> michael, i see that you prefer right now healthcare technology and financial services as your favorite sectors. is it a valuation play is that the prospect that things will really improve on the macro front? >> well, i think things are going to stabilize and improve

i think, i don't expect a deep recession. although i think we're in a recession now. so if you go in healthcare, it's essentially a combination equity and dividend play. i think healthcare, really the new saviors of the world with what happened with mrna vaccine technology and i think the dividend yields are going to stay they seem pretty safe to me. technology is really a tale of two types of technology. as jim just mentioned, if you have a, jim cramer mentioned in the previous spot. if you have technology that's earning cash flow and perfect example is apple those are going to be i think bounceback kind of names high cash flow names not necessarily recommending apple, but more bounceback names. but if you have technology that's really just using low finance rates in order to really fund their growth, those are going to have problems and financial services pretty much in that play as interest rates rise, going to have higher margins. >> on that point, margie,

corporate credit, somebody this morning said that you look at the timing of the apple deal and the meta deal making the argument that corporate treasuries should be running the fed and the treasury that timing was pretty beautiful and i wonder if you think it speaks to the direction we're going in ahead >> well, i think it says corporations are very sensitive to the importance of liquidity and importance of locking up very low cost long-term money. even if they don't need it today, they never know when they might. they want to be able to control their own destiny and not be impacted by fed interest rate changes. the other reason we don't know was what the fed does when a company like apple couldn't lock up liquidity and have no worries on the market. they're okay as far as a cash basis. so i think it's really one of those things we're uncertain about, but corporations are in good shape because across the board, they've been raising

money in the debt market locking up long-term fixed rate money so they should be able to ride out a recession over the next, or slow growth over the next year, 18 months, which is what we think will happen in the economy. >> good to see you thank you very much. as we go to break, roadmap for the rest of the hour including amazon reportedly in talks to buy signify health >> plus, warren buffett is getting the green light to buy more shares of occidental petroleum. the biggest gainer on the s&p year-to-date and cnbc getting a rare look at ftx's financials showing the firm grew the craze to a billion dollars last year. dot ay. n'gowa

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amazon reportedly among those interested in acquiring signify health bertha coombs has more >> they're not the only one. signify has been among the best performers among the primary care companies paying doctors to keep people healthy rather than fee for service. a bit like paying a lawyer a retainer fee rather than hourly billing. signify any health specializes in analytics to ramp up value-based care through an acquisition of its own, it has 10,000 physicians and partners with 200 health

systems as well as 100 federally qualified health clinics that treat lower income health patient to help them with a contract business. amazon reportedly getting into the bidding process, doubling down on its $3.9 billion deal from primary care firm, one medical, earlier this month. this would not only give amazon a leg up, building its amazon care service into a brick and mortar business, the value-based care analytics could also boost amazon's web services, which already has a lot of business with hospitals cvs health on the other hand, the ceo said this month on an earnings call, is looking to make a deal by the end of the year to boost its primary care offer in its clinics 10,000 doctors would help a lot. cvs reportedly lost out on one medical because it didn't move fast enough, but now, united health reportedly among those interested in the bidding here

reportedly offering $30 a share. about $7 billion valuation for signify, but united already has more than 50,000 doctors employs or parters with. they've taken the company to court to block the merger with change healthcare. so guys, that might be the toughest deal to get back regulators here. >> bertha, that's where i was going to go. you mentioned change healthcare. sheds an interesting loight on united health. maybe they think they're going to prevail against the department of justice in terms of getting change healthcare approved by a judge. but i wonder as well on amazon the one medical deal and now potentially this one are they saying to the regulators come and get us >> potentially >> amazon has to potentially fight the regulators but the other issue is the trust factor, david. i've heard a lot of people when

they brought up one medical say i don't know if i want to stay with one medical now they just don't like the idea that amazon would have that much data on them so that's another issue. i've gotten pushback on that as well as soecial media just from folks who have seen it so for them to build that trust to say we can run this business efficiently and do it well and not sap the life out of these businesses is also something they need to overcome. >> of course, healthcare inflation with the various partners there, another consideration. bertha, thank you so much. >> you're welcome. still to come, we'll talk about ongoing weakness in bitcoin, sending shares of some stocks lower as well but first, check out shares of tesla. there you go down about 3% right now. elon musk saying the company will hike the price of its full

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leaked documents from ftx revealing that company rode to $1 billion of revenue. >> this is a pretty rare look under the hood of their finances we got a copy of its audited finances and the crypto exchange brought in just over a billion dollars in revenue up over more than 1,000% in more than a year. as of the first quarter of this year, it was on pace for a similar run rate ftx was also profitable. operating income was 272 million. that was up from 14 million a year earlier and operating margins of roughly 27% guys, like others in the brokerage industry, the bulk of revenue comes from trading fees, but it's much more indexed for some of the more sophisticated derivatives that were by far the biggest revenue driver with most

of that action happening abroad. less than 5% came from its u.s. subsidiary they've made a big push for the retail audience. you might remember the larry david super bowl ad and partnerships with tom brady and giselle. it spent about 15% of revenue on marketing and ads. it also plans to spend almost a billion dollars there in the next few years we'll see if that number changes as crypto companies pull back on spending the documents though also give a sense of sam's global footprint. the ceo owns ftx which has companies in cyprus, turkey, uae and switzerland and australia. which may have been to get certain regulatory licenses. unclear how the company is holding up in the recent downturn we don't have the q2 numbers that's when crypto last started taking a hit. shares of

coinbase, those are down about 70% from january don't miss our exclusive interview with brian armstrong today. that one's airing tomorrow on cnbc >> great, kate, and nice scoop with these financials as well. is there anything we can glean or anything that will indicate that ftx held up better this year than its peers or can we kind of draw comparison and look at the comparables that are publicly traded? that would suggest there was a significant slowdown in 2022 >> so the one thing to look at is trading volume. that's pretty consistn'ent acros the board. in the last quarter just a few weeks ago. the one thing that could off set that is if ftx is taking market share from coinbase or binance

if they were able to glrow, get more customers, yes, there's been a slowdown. if you talk to analysts out there. some of this is trackable. you can see some of the trading volume in realtime in crypto markets and it seems that binance and ftx are making more moves in getting the market share. that would be one thing that could off set any sort of weakness, but you talk to any of these ceos and they're saying and seeing the same thing, that trading volume on the retail side is slowing down institutional tends to hold up better in things like derivatives, but on the retail side, it's been a crypto winter, as they're calling it. >> well, and then everything freezes over kate, thanks so much you brought up institutional crypto trading lower today broadly continuing to sell off that sent bitcoin under 22 k for more on the space, specifically institutional, let's bring in the cofounder of

anchorage digital. thanks for being here. maybe we can start with the overall environment. it's kind of a risk off picture, especially in the short-term today, you've got meme stocks selling off. crypto selling off, but you see institutions have been holding here minimal outflows from these institutions why do you think that is >> i think the first reason is that institutions have very long-term horizon when it comes to investing the technologies such as block chain, but also when it comes to the financial markets. so as you've seen retail-led movements, trading activity goes down, but institutions continue investing in the space crypto's not just one thing. not just trading there's a lot of real products being built on top of these infrastructures including stable coins that will continue being built throughout the bear markets. >> in terms of regulation, do

you feel like there is enough capital held by institutions and potentially elsewhere to come into this market at this point especially what they've seen over the last few months yes. i do feel like what has happened in the past six months has been ten years of maturation of the space. just crunched into six months. so clearly, it was an unforced error from the point of view of the crypto industry. there's no denying that. however, one thing to be very clear on is the fact that the institutions that actually have problems and went bankrupt were centralized finance institutions they were traditional institutions providing access to a new market these were not regulated institutions like anchorage who was a federal bank under the guidance and supervision of the

occ. companies like anchorage had no issues because we're audited and regulated. what we need more of are regulated institutions and not the unregulated institutions we've had participating in the market the major difference is clarity around which regulations apply to these assets and obviously the acceptance from the regulators of having these institutions >> so then you agree with sec chairman gary gensler who wrote there's no reason to treat the crypto any different than the rest of the capital markets. he uses his car analogy. even though we've progressed to electric cars and other additives we see in car, doesn't mean we can't keep passengers and drivers safe and we shouldn't enforce things like seat belts

is crypto so specialized a product it needs specific rules or it should be looped in with any other type of security >> i think it's a little bit hopeful to think that we're going to go from scratch to a whole new regulator. even though that is a perfectly fine outcome for this. in fact, potentially for many people, the ideal situation. the reality is that the technology is significantly different. there are things that crypto assets and currencies do and are add its most basic foundational level. they are significantly different from traditional assets and asset classes. so there's a lot of reasoning and logic behind the fact we should have a specialized type of regulators for crypto so that is not actually something presenting however, taking a step from now, a lot of clarity on which

regulat regulator apply to this and how they're treated, i think that would be a better first step in fact, we have bitcoin being treated as a commodity and we have many other types of regulations for which at least it would be close enough so first step might be to use the traditional frameworks that we have that have worked for decades on these assets and effectively put them in buckets then the next step might be to actually get a regulator that is more sophisticated even than the current ones on the actual crypto aspects >> the journal did a piece a couple of days ago about banks while avoiding investing directly in crypto currency, using block chain to trade some debt, trade some bonds, building their own platforms using ethereum do you think that should be more of a focus than trading? >> anchorage has an interesting point of view in the sense that

we are an institutional only bank so we only serve other institutions so our focus is naturally geared toward cases enabling institutions and what we feel is needed is you need safe, regulating and easing infrastructure for these institutions that get to the consumers and serve them in a correct manner it has to have regulatory clarify to get to regulated institutions that are ultimately the consumers. i don't think this block chain should come back there's clear use cases in utility on a lot of what's happening in centralized finance in crypto. however, we do need more clarity and regulation >> that's a great point. especially across the supply chain of the crypto ecosystem. thank you, diego really appreciate it s&p still down

back to 4155 let's get a news update with bertha coombs. >> russia is accusing the ukra ukrainian special services of killing the daughter of one of putin's closest allies she died on saturday when a car she was driving exploded near moscow her father had planned to be in the car with her russia did not provide any evidence backing the claim ukrainian officials have denied any involvement in the explosion. the judge in trump's mar-a-lago case issuing a written version of his oral ruling last week the judge ordering that the affidavit the government used to get a warrant to search mar-a-lago should be released to the public, but he gave the doj until thursday to offer redactions to protect sensitive information. he also says he may decide it's not worth ordering the release of any portion because the redactions may render the document meaningless gibberish

and a new study has found that switzerland's 1400 glaciers have lost half their vol numb since the 1930s. they found they had shrunk by half since 2016. since then, they've lost an additional 12% over just six years. when you consider that, it includes pandemic years. that's saying a lot. back to you guys >> incredible. thank you. after the break, we've got a live report from beijing as china trims its key lending w wn00once again dodo 5 back in two. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do.

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watching the s&p closely down about 73 points the first back-to-back 1% declines in a couple of months laggards include ford on that. and netflix, too, guys, as cfra

goes to sell with a target of 238. >> yeah. china cutting a key rate in hopes to spark its economy eunice is live from beijing and brings us up with the latest for you this morning, or evening for you. >> thanks so much, david as you said, china has trimmed a key benchmark lending rate and this comes after it has unexpectedly lowered two interest rates or policy rates last week. the one-year loan prime rate, this is a reference for new loans, was cut by five basis points and the five year lpr, which is used to price mortgages, was reduced by a bigger than expected margin of 15 basis points. the move suggests that policymakers are looking to keep borrowing costs relatively steady while targeting the struggling property sector in fact, the central bank held a meeting today where they called on lenders, especially state

owned banks, to stabilize credit growth especially for small and medium sized businesses the bank also asked financial institutions to ensure quote reasonable financing for real estate developers, although there wasn't a lot of detail on what that would entail and whether or not these measures would really convince potential home buyer to get into the market especially with so many unfinished projects out there and a lot of people worried about the overall shakyniness of the economy. the authorities in the southwest extended power rationing for that region to thursday. and this is because the southwest, which relies very heavily on hydro power, has seen river beds dry up and temperatures as much as 113 degrees. so factories are being told they need to suspend or reduce their capacity at least for the next several days although weather forecasters are

hoping that towards the end of the week, there might be some rain fingers crossed. guys >> fingers crossed, indeed it just seems like one thing after another over there >> you know, i wonder on that point, where are we in covid lockdowns these days have things abated a great deal or are there different regions of the country we should be keeping an eye on? >> there are different regions in the country that are still under lockdown in fact, the areas most heavily affected are big travel destinations that chinese usually go to over the summer. so there's an island which is often described as china's hawaii and then shin jang as well asty tibet. unfortunately though because there are big crowds there, there have been a lot of lockdowns and people have been under lockdown for several weeks now and the latest has been that

the authorities there are trying to get some of the tourists like tens of thousands of them, back home just because there have been so many complaints about, well, basically a nightmare scenario for all these people who were hoping to get away from places like beijing or shanghai where there have been lockdowns and now they're in lockdown on a vacation >> indeed. even as we're talking, nikkei says that japan may be considering ending their pre-arrival covid testing requirement. fascinating. thanks still to come this morning, we'll talk some energy as buffett gets the green light to boost his oxi stake. first up, check out chinese tech today. outperforming. stay with us we're back in a moment what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems.

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alexander dugina we'll take a look at the spdr. energy has been one of the strongest performers in the stock market until recently, outperforming utilities. the only other positive s&p sector today, we're focused on occidental petroleum the fourth largest holding it's been a big winner up 134% in 2022 and warren buffett's berkshire hathaway has been a big buyer. on friday, berkshire received approval to go as high as 50% for the company. the shares are up 10%, however getting back some of those gains this morning the journal reporting buffett will not want to pursue a controlling stake.

but of course, the move in energy today, leslie, as carl mentioned, is also a result of what we're seeing in the commodity itself oil down to levels we haven't seen in a while. >> indeed. it's not typical and berkshire has said they won't do unsolicited buys for a company you can assume they've given them to blessing >> not to acquire the entire company. >> a controlling stake according to the journal, but you know one would assume this is being done in a friendly matter. >> it is he likes vicki, the ceo. buffett does is confident in their future don't forget, he was there to really help them on the anadarko deal and paid a very nice annual dividend so to speak for those preferred shares, but he was a significant shareholder back then as a result of the convert that went along with that. >> speaking of preferred shares, that was a good segue.

from berkshire to meme stocks. we are also watching those today as amc launches its special ape preferred shares kristina partsinevelos has more on that very evolving story. >> well, your shares will not be diluted. that's what the ceo is promising shareholders so what happens is every current amc shareholder as of last friday got one amc preferred equity unit, which stands for ape. that is now trading on the new york stock exchange just below 9 bucks, but many have not received their shares just yet it's actually been halted over six times. it's trading over $8 at the moment, but the ape issuance comes after shareholders voted against the issue of new equity at the last meeting, so some people are calling in this a work around. they will be convertible into common shares when it's in amc's best interest. ape shareholders get preferred

status so if they go bankrupt, they get paid first. but if management, and this is the important part, needs extra cash to make acquisitions to pay down debt in q2, they can issue more ape shares. roughly 483 million more and that's when delusion becomes a major concern. >> this is just like a shell game you might see in union square and this is just a way for the ceo to create a new currency to go out and raise money you may not get diluted on the common, but you will certainly get diluted on the preferred at some point in the very near future >> amc's shares actually surged just after the news was announced on august 4th, but they are plunging. down 38% today and over 70% off their 52-week high but the company is fsteadfast in its believes and said ape shares will make them a stronger company. guys

>> thanks. huge story this morning. coming up in the next hour on tech check, is it time to sell netflix? why one firm says these 40% run we've seen since mid july could be the top stock's at about a two-week low this morning then tomorrow, don't miss an interview with brian armstrong kite rooney will bring that to us we'll be right back. ♪ ♪ 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 lily! welcome to our third bark-ery.

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. welcome back to "squawk on the street." i'm dominic chu, stocks very much to the downside, near session lows at this stamg to start this week off with every sector in the s&p 500 trading in negative territory behind me here consumer discretionary is among the worst performers, down 2.5%. within that discretionary trade we are tracking a notable decline in shares of ford motor. that move follows a $1.7 billion verdict weak roofs in pickup trucks, we'll watch that general motors and tesla, other vehicle makers lagging as well cruise line operators, carnival,

norwegian, all lower today, weakness that has all three names off by about 10% or more in just the past week. watch the car makers, travel and leisure, leslie, downtown to you folks at the new york stock exchange. >> thank you very much, dom. as we head to break, check out the ten-year yield, hitting back above 3% this is, of course, as we head into the jackson hole symposium that's set to kick off on thursday however, the 10 and 2, still very much inverted at this point in time. eneayou can see there, t-yr yield, above 3%.

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stocks are down as interest rates, of course, continue to weigh an sentiment this is ahead of fed chair powell's speech on friday in jackson hole, wyoming. housing markets, one of the country's largest lenders, nation's lending, jeremy softko. we talk a lot about higher rates, but what does it say overall for the housing market affordability issue to begin with, not to mention not a lot

of houses out there for sale how does that all add up right now? >> well, you've hit the two points on the nose, lack of home building over the last decade. we've had increased interest rates, skyrocketed since january. affordability is a huge factor right now. so we need to see something break. the first thing that we see breaking is going to be the home values i don't think the feds are in any position right now to start lowering rates in fact, probably expect them to stay in line with their thought, keeping inflation down, and that means increasing interest rates right now. >> yeah, so when do we start to see that we haven't seen it yet in terms of home prices what are you expectations? >> we're seeing it in certain areas. i think if you're a seller, it's a great time to sell i think within the next quarter, two quarters, we're going to see the cooling off of valuations out there. you're seeing incentives getting

out by builders holding inventory right now, who prior to the last three to six months, were just building, building, building and now they've got inventory, and to incentivize buyers to get the inventory off their books. >> i covered the great financial crisis and the roots of it quite closely. lack of affordability then brought a lot of underwriters to say i'm not worried about my underwriting standards i'll write a mortgage for anybody. are you seeing diminishing in underwriting in your business? >> no, i think some companies who set the bar at 660 maybe lowering those standards, down to 620, even 580. i believe they should be everybody who's capable of getting approval should, regardless of their credit score at this moment. >> jeremy, you don't see how housing recession is avoided, but you believe it will be more of a slowdown, than an outright

collapse we know what a collapse looks like, david just mentioned it. but what is a slowdown looking like is that what you mentioned was just some degradation in valuations, or is it something a little more serious than that? >> well, i think that it all depends on inflation i think there's two factors here, right, you have inflation. we've seen inflation to keep on rising it's going to be hard for anybody to afford a home with gas prices going up, or grocery prices going up. for them to consider buying a home right now, with these increased values, it's going to be hard. i don't see the collapse, but i do see the valuations, you know, at least plateauing, or we may see a 10% or 12% decrease in valuations throughout the country. i think it's going to be healthy. we've seen back to back years of 20% to 30% in certain areas. regardless of interest rates, that, alone is just unaffordable >> does that picture give you enough demand destruction to

normalize what we're seeing with regard to inventories, and the limited supply that we're seeing, a lack of supply in the housing market right now >> i think you're going to see an increase of inventory, you're going to see those who have been waiting to sell, or maybe to top the market off, or feel that, you know, they have the ability to be a top dollar for their home, realizing right now that now may be the time. you're seeing homes stay on the market a little bit longer than they have been over the past -- the last 18 months so i think we're seeing some give there i think you're going to -- you're going to continue to see that give from the selling aspect so, you know, we're looking forward to having more homes on the market but they've got to be affordable i mean, that's the bottom line so we've got a lot of things that need to play out to get this -- you know, the housing market back on track i think last month, new home sales were down 16.1% month over month. i think that's three months in a row we've seen that.

>> right jeremy, appreciate you taking the time, thank you. >> thank you, guys, appreciate being here again. >> you're welcome, jeremy sopko. quick check on the markets, deeper into negative territory on the session with s&p down 1.86%, the nasdaq down more than 20% for the year that will do it for us on "squawk on the street. "techcheck" starts now good monday morning, welcome to "techcheck," i'm carl quintanilla, with deirdre bosa and jon fortt. down 2% today, rough stretch last week as well. got this muddled market message, and sentiment weighing on investors post earnings ahead of jackson hole it's good to be back together. but we have the three-week high and bond selloff, ten-year yield a one month high. >> last six to eight weeks, separate from last week you've seen this rally especially in some of those high growth names and this