>> i'll google it. >> we have a hundred points upward nasdaq, about 75 s&p indicated up about16 keep watching the two-year we're watching it here i'll see you tomorrow. >> i'll see you tonight. i'll be on "fast money" tonight at 5:00. >> join us tomorrow. sq"squawk on the street" is nex we hope. ♪ >> good morning. welcome to "squawk on the street." i'm carl quintanilla along with david faber and jim cramer oil settles down and the cost of european electricity comes down. officials say the storage efforts running ahead of schedule home prices up 18, but that is a june number. road map begins with a quarterly beat for best buy despite an uneven sales environment.

>> elon musk's take two. tesla founder and ceo is making a second attempt to scrap his twitter deal we've got more on that and shares were a bit lower ahead of the open. the company is upping the pressure on moscow to allow it to exit that major gas project of which it's been a party for many years i want to start with obviously a lot to talk about in terms of the markets, guys. but i did want to get to twitter. in addition to this latest claim that we've been talking about throughout the morning, of course, you heard joe and melissa and kyle talking about it we can tell you now something we've been waiting for has occurred it's the been filed privately. it will hit the docket later this morning that is that elon musk, no surprise here, has filed to amend his counterclaim and added the whistle-blower compliant to that and the allegations made by the whistle-blower last week to their complaints

so what is the effect of that? obviously, it will be to ask the judge for more discovery and to potentially delay the trial. so none of that is a surprise. in fact, we've been waiting for when that would take place, again, sources tell me it's been filed privately. it will hit the docket this morning, it will be made public at that point. but, again, the question becomes, and likely the chancellor will hold a hearing as she did last week on a different request, but likely hold a hearing, and then make a decision as to whether additional discovery is allowed for and if and whether the trial should be delayed. all of this, of course, in the wake of that whistle-blower complaint that was made public by "the washington post," cnn last week. it really doesn't backup musk on his claims of bots -- >> no. thank you. >> but does open up this new

avenue of security and whether, in fact, the company, perhaps, is even more liable under its consent decree with the ftc. more on that in a minute. >> all right so, is this possible we've seen this in delaware courts this is the opening of price negotiations >> you know, jim, you're asking a valid question which is would either side consider just getting this over and done with and settling -- >> maybe 44 is the magic number. >> which still seems to be the weakness of musk's case in many ways given what he needs to prove in court not whether there are more bots than he says there may well be. but he needs to prove that there was fraud and prove that it actually is a material adverse effect on the merger agreement that's not going to be easy to do in court. >> we've seen cases in delaware frequently where you get to this point and the judge calls you in and say, look, i want to see

negotiation before i want to see a ruling and the stock is down a lot. isn't there some price that you'll accept twitter? how about you accept 44 or 45. and at that point, twitter has to decide their case is ironclad or there's an opportunity to sell the company and i have to tell you, i think they want to sell it so badly that i think -- >> they have an agreement to sell it. that's what they keep saying >> but they -- >> we have a deal. >> at $54.20, by the way. >> when they get in there, they don't have a deal. >> well, again, jim, i think this board of directors, best i can tell at this point, still believes strongly they have a very strong case. >> i don't think the judge is going to like that i think the judge is going to say, guys, you want a deal, i don't want to rule in this you want a deal, make a deal >> again, you mean make another deal, right? >> come to a settlement. you cannot discount the possibility for a settlement

frankly, twitter believes has a strong case to be made at this point. let's hit the second termination letter, though, this is again, all right, you're going to file in the termination letter, so what what does it mean -- it's not like you're going to get another case and another judge to do this all over again. it's all going to be incorporated into the current case musk's second termination letter does say that the complaint, the whistle-blower, alleges far reaching misconduct at twitter all of which was disclosed to directors and senior executives including its ceo that's likely to have severe consequences for its business and demonstrate twitter has breached the merger agreement and we have the right to get out twitter says, hey, that's based solely on statements made by a third party. as twitter previously stated, riddled with inconsistencies and inaccuracies and lack important

context. we preach none of these obligations and no way, you can't get out. you got to stick with the terms of the agreement >> yeah. i agree with that. >> that's where we stand >> one key -- >> okay. we're in the stock business. >> yes, we are, sir. >> the stock is telling me that it's not going to happen. >> i disagree with that. >> you do? >> yes. >> you think the stock would be at 20, otherwise >> i think the downside is below 20 potentially if you were to tell me today that this deal breaks, it's done, over with, i think there's an argument to be made that the stock would -- because there's certainly some disarray at the company, there's real questions about leadership and a lot of other things and, yeah, so you say that, i say no that's reflective of risks, certainly, that this deal is not going to close in the terms

originally thought and/or the slight risk right now that musk wins in court. >> directionally, since whistle-blower, since musk bid, your point is -- >> my point is, less than 45 >> it gave him an avenue that was not available -- >> why should brett taylor who i wish would spend more time at salesforce it goes down regularly brett is great but, honestly, salesforce could use more time. he did divide his time he was working in south america, all that stuff but i think that brett should look at that price and say, guys, let's take 40 when we can get it. >> 40? >> you just said it's worth 20. >> they're not going to take 40 because they got a contract for $54.20. >> it does not matter. >> there's the obligation on musk's party to actually -- musk's team to prove that

there's been a material breach and there hasn't at least we haven't seen at this point. again, by the way, the road they went down is about bots, the whistle-blower kind of backed up twitter on bots but created a lot of other -- >> the whistle-blower has -- >> i want to end this. we want to talk about the market i do want to play quickly if i can -- former ftc joined us last week and the key -- >> i liked that interview. >> the key question -- >> i could play stuff from "mad money" -- >> and we do that all the time today may be one of the few days that we don't. >> go ahead. >> thank you >> you want to speak on the phone like we did yesterday -- >> that was hilarious. >> david, run the clip >> he made the point that the ftc has had its opportunity to audit the company. take a listen. >> every two years they have an independent auditor and the ftc gets the report of that audit. since 2011, and i'm sure that

they reviewed that in their latest settlement which is only at the end of may, and as part of that settlement, included some of the points that were raised by the whistle-blower it showed me that they actually saw that so the question is, is that with this whistle-blower complaint, is there anything that the ftc hasn't seen already? >> that's a key question here that we'll continue. >> that was dispositive. >> he's going to ask for more discovery. we'll see if the judge agrees to delay the trial and that's where we stand right now on twitter. >> i think it's important to point out that the social media stocks have completely collapsed and it's not so much that twitter is worth 20, but the whole cohort seems to be -- >> what do you include in that >> pinterest snap, like that, disappeared as a factor almost everything -- internet banking.

anything internet has become the kiss of death. i will risk right here saying that i think meta actually has more things going than people realize including just the joe rogan interview with mark. i did not expect the joe rogan interview. did -- did mark come out against the vaccine? >> i did not hear that part. but he definitely was pretty candid about how he views competing platforms. >> i know. >> even admitting to criticisms of instagram that it's overcurated, for example. >> they have the -- there are some celebrities, high-profile celebrities, who are, right now, upset. kardashian. >> what are they upset about >> you're not following the kardashian meta? >> he's been working on the twitter and -- he's been reporting -- >> they don't like instagram they're upset. >> they had some criticisms of

the curation process. >> the kardashians are a cultural phenomenon. they represent the cross between jefferson and madison. >> we'll watch social media. even as you think in the midterms, the broader market, bulls are going to regroup after a couple of tough days, jim. you did interesting chart work last night. >> yes, i want to talk about that. >> why are they all so constructive about year end? >> besides the fact that the 1892 chart matches exactly -- there is something about the setup of being negative all year with an october surprise down that then has led to a good conclusion of the year whether it be the conclusion right at the end after christmas or whether it be right from october bottom but there are -- when you look at -- this is a situation, david, where if you overlay the

whole year over previous years, you'll see that this set up is always bullish for the middle of october on >> why >> sometimes you can't define that. >> you just know it because you've seen it before. >> yeah. >> okay. >> now let me just explain something to david while i've got him. we're going to give him something easy you play fantasy football? >> i'm aware of it >> so there's a lot of people who tend to get injured during the season so you can call dave tapper and talk about christian mccaffrey. you set the chart up and you predicted in game five he gets hurt because it's likely this is likely tendencies. >> because it's happened before. >> because it's happened before. >> so this maybe he understands, football, no >> i like football. >> that's not the point. i'm saying that you understand

that there's tendencies -- >> i do. i hope mr. mccaffrey gets hurt this year. >> you have him? >> no, i don't have him. i hope he has a good year. >> it's nice to see football in realtime, even though some of these games -- >> it really is. and we have unbelievable games, nbc. we do sunday night games. >> so just back to the market for a minute, given this chart the way that good.

>> we'll see >> futures have lost a little steam. >> listen, i'm talking to david right now. david, let me tell you something -- this morning exxon escalating its dispute to russia we'll get to earnings, best buy, big, some first solar and peloton news as llwe "squawk on the street" next.

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find rewards like these and so many more in the xfinity app. it is a rarity for a company to sue a country, but we are on that road right now. we're not there yet. we're talking about exxon escalating its dispute with russia over its exit from the project that it's been involved with for many, many years in that country last spring, exxon said, we're out, and expected to be able to wind down operations with the expectation being as well that it would find another company to come in and take over, essentially. it's not the day-to-day workers who are all russian nationals, it's the senior management, the engineers and the like who are

also there that need to be replaced with similar quality engineers and that seems to be an issue seems to be something that russia has not been able to -- or issued say, exxon has not been able to replicate and they've been prevented from replicating from the russian government now you have this escalation of this dispute they filed a notice of dispute, essentially, but it could end up in what would be international court and venue potentially could find yourself in some sort of a case where they actually have a judgment against russia this was 200,000 barrels a day down to 10,000 they're producing enough to keep the lights on. but you can't shut these plants down. >> no, you can't. >> you have to keep them going and you have to keep them going at a level where certainly exxon would say respects the

environment, most importantly, because they have significant concerns that were they to hand this over or somehow shut it down, it would result in potential problems. >> if you remember, carl, when we had the -- the hurricane in texas. you saw what happened. very few of those plants were ready. and so they hit the storm and the storm destroyed their building to start up again these things are so complex. we just think, oh, we have an image of rockefeller in the bradford fields of pennsylvania where they're putting -- they're stealing the oil from everybody. no i mean, these things are technological marvels. >> and doing that in the middle of the arctic is even more of a technological marvel what they were able to do with their engineers there, and the

drilling that took place, it really is technologically an incredible -- as we showed in our documentary, just -- go off the coast, you look at what is actually involved in the process. it's incredible. >> by the way, on peacock. with a viewing, none the less. >> people should know when you have these fields, the reason why they're so great is that when you see big oil numbers coming out of the permanent, they have to drill those a big field in the gulf, they produce 160,000 every year this is entrepure gold to have t 220,000 every year we have to replenish and replenishment is the kiss of death. >> you have citi recently made their exit from russia there's a lot of discussion this morning about kyiv making a

counteroffensive and taking a little bit back from what russia's gotten. >> you mentioned the idea that the natural gas is building. there had been a lot of people who felt that germany and france would sellout ukraine and have meetings with putin on their own and get to a peace treaty without zelenskyy in the room. that is coming off the table, which i think is allowing more offensive. however, remember, our country believes that russia is a sanctuary. meaning that biden is forbidden any of our weapons to be used offensively against what are known russian land. >> the russians are still selling plenty of oil, financing this war their revenues this year were more than they were a year ago >> how do you feel about that? >> it's not working the way it was supposed to in trying to cut them off just to end on exxon, they're spending millions of dollars a

day to run this and they're not getting paid. >> is it enough to bang the earnings what's the dutch doing what's shell doing >> they're out too it may be a different situation with shell i don't know as much about that. >> these oil companies overseas are different from ours. we're -- we're trying to get out of everything. what's left that we're doing. >> shell has warned that at least the energy crisis in europe is going to last for several winters, not just that -- >> they ought to call and get that deal done doing some -- well, no some of these plants, the ones that are doing, they're filing today. 2030 is when the next plant will work if you file today, it's a -- >> what does this mean >> we got to go. >> we will get cramer's "mad dash" and opening bell in seven minutes. (vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network.

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all right. looking to regroup after yesterday's loss and friday's obviously rout opening bell is coming up in less than five minutes you can catch us any time, listen to and follow the "squawk t see oni bl podcast. back in a moment

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>> announcer: the opening bell is brought to you by nuveen. a leader in responsible investing. all right, let's get to a mad dash we have an opening bell less than two minutes from now. best buy, a name that we haven't followed yet, reported earnings, give me the take. >> first of all, corie barry was very good on understanding how to do supply chain she was well ahead of the game she was quite well supplied. second, we had work from home which was terrific for best buy.

then we got all the incentives from the government which was great for discretionary. now the fact that they're signaling its total same store sales are going to be double-digit down in domestic, they decreased 13% and that the stock is up is almost fanciful. because what it shows you is how negative people are that you can get that number and people garner it as positive. that said, when you get a company of this quality and it sells, this is the key aspect, at seven times earnings, you just say to yourself, seven times earnings, i have a list here of companies that are selling at a pe of lower than ten in the s&p 85%. 85 85 >> 85. >> i just think what this shows is, people are busy saying, i'll

take a shot at a good company that yields 4.7% and going to be get through this period. >> best buy is down 26% coming in this morning. and they withdrew their guidance, but it doesn't matter. where we are now at this time because everyone is so darn negative that macy's can sell at four times earnings with a much better balance sheet than it had. people have given up and i like the situationwhen people have given up >> here's the opening bell realtime exchange. at the nasdaq, amedisys. jim, as for best buy, not too many retailers are reporting inventory declines year on year, down six. >> i want to emphasize that corey b

corey bar barry is one of my heroines the amount of money that was going in from work from home has declined the only one that is continued to deliver is williams sonoma and that is because you would get from laura albert, she said last week, once you know that you really are able to work from home, you get rid of the wayfair and you bring in the big guns. you bring in the nice stuff. west elm. >> big lots is up eight. smaller than expected loss revenue beat has a great stat on bed bath bed bath has been the best or the worst stock on the s&p 1500 for nine different trading days. >> i've been a fan of professor siegel and i was shocked but also

gratified to see that he said, listen, these are gambling stocks there's a class. it's gambling stocks when you go to the casino and -- you go to the -- when you go to -- the skill of roulette is not that powerful. there's not a lot of skill to roulette, david. >> no. that's a game of chance. >> so is bed bath. it's a game of chance. and that's what it's become. the only thing that we know for certain is that ryan cohen on the backs of the foolish memesters made a ton of money. he got in at a low price, he got out at a high price. and we expect him to share it? >> no, he should never believed as an activist which is how he portrayed himself in this. even managing to successfully

install some directors and then exiting almost immediately. >> you know what he did, he hit double zero. >> he did. >> very ard. >> he did. >> he played the game of chance. gamestop, we never talk about gamestop anymore, but we should because it's a mall-based store and i don't know if anyone has watched the mall-based stocks. but the decline in david simon stock of simon property group is frightening. it now yields 6.7. i think he's the smartest in the group. look at that. >> we did an interview yesterday talking about office occupancy, guys, national average 40 since may. and maybe that's a summer dynamic. but even texas hasn't been able to crack 60. >> if i were president, if i were king of the forest, i would

say -- i would go to -- i would have a summit meeting with -- >> at the white house? >> with fed chief powell and i would say, listen, we've spent trillions and we don't have any billion to be able to build anything this is all engineers we need. imagine building a factory in ohio you need a couple -- no, there's a -- we're talking about a high intensity machines from lam research what we need is to convert those office buildings if you go next door, there's one wall, they're putting apartments in there what -- chief powell needs more than anything else in the world other than people being fired is to have those buildings converted into housing. >> into housing. >> into housing. >> we talked a lot about that in the past from silverstein and other landlords here the floor plans of the buildings built in the '60s, very

difficult. not a lot of light very expensive to really redo them a lot of the buildings around this area which already have been converted to residential lend themselves for to that possibility. but it's going to be very difficult to take your core corridor in a lot of these cities where you've got buildings built in the last 50, 40, 50 years and do anything with them. >> how about factories >> how about them? manufacturing -- >> i'm trying to solve the housing crisis. >> first solar today, 1 at any time -- $1.2 billion >> where are they going to find the workers? >> the supply chain is as important if not more than just the workers, jim. >> they're going -- >> setting up the proper supply chain to produce solar panels in the u.s., that's a big deal. that's not an insignificant moment >> where are they going to

find -- where are they going to find the workers if greg hayes from raytheon technologies cannot find 5500 highly paid engineers, of which he will pay for any degrees you want, too, by the way, they can't find them, how are all these start-ups going to find them and how many battery factories can we have? >> we are moving towards renewables and that's going to require a ramping up of a lot of different things, yes. >> how many engineers does our schools -- we're too busy turning out computer engineers to work at meta and google and you're asking them to work at a -- a solar factory? >> maybe it's a different group of people? elon musk doesn't seem to have too much trouble finding people.

>> well, he's got the -- he's midas. >> in austin or california. >> i'm going out to seattle and san francisco and we're going to find out what the hell is going on up there. >> will you let us know? >> i see unemployment out there, i see companies, i see software as service companies not getting funding anymore because everybody knows it's nonsense. >> axios has a piece out this morning that one of the takeaways from jackson hole is that supply challenges are here to stay, right it's china tensions, it's covid, it's climate change, it's demographics, it's labor force. >> china has taken itself out of the running as a safe place to do business and -- safe, meaning because of covid, but we don't have -- until you dredge the harbor, i don't believe there's still not mines there that we put in probably are until you dredge it, nobody has -- we all became hostage we didn't realize that we were

hostage. we were happy -- >> now we're trying to change that hence back to that first solar announcement -- >> they should do it in mexico but no one seems to -- i think mexico has everything they need. but they don't except for the germans germans are very happy the volkswagen plant there, biggest in the world, it's like seven football fields. the germans are comfortable building everything in mexico and sending it up, whether it be bmw, volkswagen, benz. when you go down there on the planes that i do -- >> that's the way in philadelphia, they say german, see you later. >> i say -- do you know what that is? >> no. is it what you put on your cheesesteak? >> oh, my god. what did -- never mind

someone ordered -- >> what was it last week it was hans. >> i'm from philadelphia. >> i saw hans at a -- hands down i saw him at a dinner benioff. >> did you say "hi" hands? >> remember what senator curry said when he got to the window >> do you want provolone >> that's wrong. >> your best buy is up over 5%. >> i told you. we have to start talking about these stocks >> i don't have the pe below eight. i have it around 12 1/2. i'm not sure what numbers you're looking at. >> i'm just saying if you -- going into this, if you thought that the stock was going to be down big, it would be on my list. >> okay. i think that -- i want to make these cases. carl, here's what we never talk about anymore. because everyone is so down. let's say you have a ceo who is

as great as corey. she told me that gaming was going to run its course. she told me that they've got enough pcs to be able handle work from home but not more. she told me that they had a system called the total tech membership it did hurt their numbers. it would make it so basically you could have for a home office, you could -- you get i.t. i think it's fantastic you get i.t. remember, home office, the i.t. person doesn't want to come to your house but the best buy i.t. person comes and their respectable and terrific buy best buy 4.5% yields. >> shares of lucid are down. >> i haven't mentioned lucid i was on best buy. how did we move to lucid >> you were talking about ev growth -- >> was there any other points you wanted to make on best buy i thought you were done.

>> go big lot. >> lucid is down because the company does file the -- to raise what could be an aggregat of 8 billion in primary capital in one or more offerings over three years that could obviously include common, preferred, warrants, debt securities. this is a broad-ranging shelf registration but it paves the way for the company to continue to raise money because -- >> because they probably have cars by the sevens >> by the dozens. >> by the sevens. >> by the sevens and it cost them a lot of money to do that and they're not generating free cash flow at this point. >> how are the cars working? >> i don't know. you were one of the early drivers. >> i got to recall my maverick yesterday. >> that has nothing to do with lucid. >> it has to do with lucid had some technical problems making cars. >> okay. >> so you got to send it back

in >> i have to take it back in it's because the engine can catch fire. >> technically, true with a lot of cars. >> i love my maverick. >> does that sour you on ford? >> no, i love my maverick. i love ford. people turn their heads and they see me in my maverick. area 51 color. >> excuse me >> i felt terrible my wife is going to take it in. >> we haven't mentioned this line from yesterday that got some chatter that he was happy about the stock market's reaction to jackson hole. >> that's what -- this is part and parcel where we are. we have to accept that the fed wants anything of value to be worth less that's what he wants david, they want -- i was going to say your suit, but you're wearing wrangler or something. they want my suit to be worth less that's what they want. they want you to --

>> this is exactly what citi said clear negative for risk assets. >> exactly let's accept that. when you have 85 stocks in the s&p that are already selling below ten, do they not realize that in many ways they've won this thing they're winning. but, you know, then you -- they're raising funds for a driftwood project. okay how are they going to do that in an environment where the fed doesn't want them to. >> that's a lot of money but these projects are enormous. require an enormous amount of capital. take years to complete >> right, but we need them but you can't do it -- >> don't forget, things do change when the first terminals were

being built, they were imported, not exported >> i know, the first person to import and became the first one to export. i'm telling you the one that is never talked about is sempra. they've got the plants they're the ones that are set up best but because they're in mexico, people don't talk about them >> by the way, we should take note of energy down a couple bucks on texas aaa gas prices down 77 days in a row. >> that's incredible fed is winning there. >> oxy is your biggest loser. >> feds, russians and the fact that the reserve is at the lowest level -- it's not strategic anymore. >> speaking of oxy, you know who turns 92 years old today >> warren buffett. 92 >> wow i mean, he's remarkable in so many ways including that

>> yeah. his ability to -- >> best wishes to everyone over there. >> maintain that brain amazing. >> headlines are flying around today. >> their -- they're crushing the fed switched we were talking about oil and oil went down a lot. copper went down it was never enough. now it's wages and rents so we have to watch wages and rents. and we need to see unemployment go to 4. we need to see the wages stabilize, have two quarters where they don't rally, where they don't go up, and at that point, maybe he will beginto talk about how one day we're going to pivot >> yeah, i don't know. i've seen it -- i've seen a couple calls for 34 unemployment on friday. >> are you kidding me. >> jp morgan -- >> 3.4 we're going to get crushed if

it's 3.4. >> the s&p did go red briefly for a moment and markets have lost some steam from the opening. let's get to bob pisani. >> on warren buffett's birthday, the essays of warren buffett, one of the top five books. take a look at the major movers. cathy woods ark fund doing a little bit, they're going for the slightly growth here parts of the market. that's a good sign that's a reversal of what's happened as carl referenced, you see energy down about 2.5% i want to point out what a big decline these energy stocks are. they've had a big run. occidental, new high yesterday, down 4%. hess was 2% from the new high. down 2%. exxon is down. chevron is down. and nat gas-oriented stocks. apa, that stock went from 30 to 40 in a couple of weeks.

it was 42 yesterday. so big, big runs in these nat gas stocks all getting down -- all down a little bit more than the market as always, the issue is the fed, we need confirmation, inflation is peaking and commodities haven't been helpful this month. oil is flat, down 3%, maybe, right now. we're seeing some other things, nat gas is up 10%. energy stocks have been on a big tear i just showed you there, except for today. they're up 7% for the month. that's a bit of a problem. we want to see commodity prices move to the downside as for where we are right now, it's august. yesterday was the second lightest volume day of the year at the new york stock exchange and six of the last 10 or 10 light volume days have been in the last few weeks we've gone from overbought in the middle of august to over -- closely oversold not quite oversold in about two weeks and one of the main reason is bond yields will be moving up.

long before friday, bond yields were moving up as for the s&p 500, well, look, the -- take a look at yesterday what happened. you see that drop in the last ten minutes. we dropped 20 points we are down just a little bit and we dropped 20 points going in the last ten periods and that's the period when buybacks are closed and one of the things that's very interesting this year is buybacks have been a very important part of the market the amount of buybacks have been up quite noticeably and i think that was a factor in that drop yesterday when the buybacks walked away because the volume has been so light. there's not a lot of other buyers out there particularly since the fed chased a lot of buyers away. here's a stat from morgan stanley. cash dividends up 13%. buybacks up 137% in the last ten months i would prefer to see more dividends. but buybacks are more flexible and obviously a favorite of corporations right now carl, back to you. >> we'll see you in a bit. quick reminder this morning,

you can always get in on the cnbc investing club with jim find out more at cnbc.com/jointheclub we got barken saying not in recession. we're in sort of a postwar inflation period we do not expect it to come down predictably. and a little more fed speak later on today the ten-year, 3.07 >> announcer: the bond report is brought to you by pimco. a global leader in active fixed income

you see best buy up, some decent action in retail today, some of the cruise lines are doing well, and we'll get stop

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chip by amd, at the same time that mr. daly city says they have to fall to a new low. 60% of the demand is falling the answer is amd goes down, because the catalyst of the citi piece is so negative about semis. right now the gravitational pullback is crushing this, even as the surface stocks go higher. >> i mean, they do reiterate adi as a top pick. >> that was not well received when they reported -- and it's kind of like jordan river, it's deep and wide, nobody gets to the other side be careful i like the stock, but today there's a pall over the semis. >> tonight i have enrique lores,

he always has a good story to tell, and john fieldly here's a stock -- stock, this is one of the best performers that's a winner. >> not too many today. >> winner, winner, chicken dinner. >> we'll see you tonight. >> thank you, guys when we come back, the headwinds, is a demand-driven hi recession on the horizon we'll discuss.

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what's interesting here is that we were expecting 10 million 3, and we've been deteriorating since the high water mark of march. consumer confidence from the conference board, another biggie -- 103.2, 103.2 we were expecting a number more han 98, 103.2 equals may, and it's technically to find a higher read, you have to go back to april 145.4 present situation, much better in the rear-view mirror, 139.7 that's the best only since june, but keep in mind our last read was the worst, 139 and change. you have to go all the way back to april of last year to find a lower number finally, maybe the most important, expectations, this was really on the low side 65.3

our last read was a nine-year low. we had a nice bounce, the best sip april. so pretty good news on all fronts carl, back to you. >> thank you, rick gong the gains got lost after the opening bell interesting numbers from rick, though >> the question is, is the stock market a good day, or do they want bad data? we'll start with bebest buy, comp store sales falling less than expected. plus bed bath & beyond, higher again. lookic at this stop, up 8% the company saying it will deliver a business and strategic update tomorrow.

of course, after ryan cohen failed baidu out with results, revenue shares are down sharply, however. that stock is down 7%. i was just listening to the best buy call they pulled a walmart. they preannounced negatively, but i do think it's interesting that some of these names are rallying off weaker results. >> comps down 12, and the s&p leader at the moment anyway. meantime, the 3wr0der market with little change, investors trying to find their footing joining us today is peter oppenheimer. we're thrill to have you good to see you again. >> and you. >> i would argue goldman has cautious for most of the summer, make increment al cautious how much, if anything, was affected by jackson hole

>> well, i think quite a lot we've had a period where markets have recovered a lot, because they've saying bad news is good news, weaker data as being evidence that interest rates have peaked, inflation has peaked, and the relief over interest rates has helped long duration to rebound, but i think we're moving into a bit more of a phase where investors will really assess that balance we've heard from jackson hole a bit more of a hawkish spin on the prospects for interest rates, and the possibility of higher for longer, and i think that will weigh on equities. i think we still have a bit of a premature recovery, on the hotels that rates will come down and they enter a period of more choppy assessment. >> as we try to assess the path

of inflation from here, is it fair to say that the it's is in a better position have i avi europe >> i think it is first of all, the u.s. doesn't suffer from the same problems in terms of surging energy and gas prices of course, it's buying things in dollars, and the dollars is very strong, whereas across europe, you're seeing a weak currency resulting in higher inflation being imported so i think the pressures are more moderate 2349 u.s., and we still have significant challenges across europe bearing in mind, of course, interest rates are afternoon a much lower level, so in that sense there's more work to be done. >> peter, haven't you been recommending going overseas to the equity markets outside the u.s., even though the u.s. has been outperforming >> well, selectively we have in local terms, we've seen

reasonably good recoveries in other markets as well, but, of course, in dollar terms, that hasn't been true that was really offset the effects of improvements in other markets, but i think its right to say that the recession risks, particularly for europe and the uk, but a reminder, of course, markets are a lot cheaper, and actually, you know, the earnings results have been holding up as well in europe, so i think selectively there's good opportunities outside the u.s. still for investors. overall, peter, in the stock market, is there a mispricing of the risks here that we're looking at related to the economy, and potential recession given what the fed and ecb are saying given the fact they are doubling down on tightening with an inverted yield curve

is that reflected in the stock market >> well, i think in recent times, the recovery that we have seen from the june lows has reflected this growing opportunity on interest rates in particular after all, it was rising inflation and interest rates that really treated this bear markets, but i think investors have been too complacent about how interest rates will come down, and also how resilient the economies will be. something has got to give. either rates will come down earlier, but that would be on the back of weaker growths, which will weigh on equities, or indeed rates and inflation will be higher than the market has been recently pricing. so i think it's likely to weigh on investor sentiment, particularly after the strong rallies we have seen. >> finally, peter, this morning germany says they're in a much better position to deal with the russian gas threat, their

storage plans are running a couple months ahead of schedule. we have some reports that perhaps russian forces are being pushed back by a ukrainian counter-offensive. is there a brewing case that we'll find the situation in ukraine has gotten much more encouraging? what is that upside scenario, for europe, at least >> let's certainly hope so i think certainly it would alleviate a lot of pressures, particularly in europe, because the proximate impact has been the surge in gas prices which, as you say, has come off a bit recently that would helped a great deal to alleviate the recessionary concerns, but having said that, a lot of the problems we've been seeing even before the war in ukraine were about supply issues, and supply issues really ultimately mean you need to see

more investment across the energy infrastructure space, and indeed in other parts of the economy. until that's resolved, we're unlikely to see pricescoming down so certainly better news in ukraine would be one of the and very welcome and i think would trigger a good deal of release, particularly in europe, but it doesn't resolve all the -- >> well, on that point, the dow now down 135 maybe on that jolts number, which came in better than expected. peter, appreciate it very much good to talk with you again. >> you too. keeping an eye on shares of twitter, as we on which do, the continues battle between elon musk and twitter, some new news to share we did last hour, and we've been waiting for this for some time.

it's yet to be made formal in court. musk's team has amended their counterclaim to include some of the complaints made by the whistle-blower made public last week that will have the effect of then requesting more discovery, and, therefore, potentially a delayed trial date it was set to begin october 17th in delaware. again, it has yet to be made public the motion should be filed to amend the counterclaim, also ask for more discovery as well who knows what chancellor mccormick will choose to do. the news we already got this morning, the musk side has also

decided to provide another notice of termination of the merger agreement, saying though all of the issues raised by the whistle-blower, or the so-called zatko complaint alleges far-reaching misconduct at twit er, are likely to have severe consequences for its business. and therefore, giving mr. musk the right to terminate as you might expect, twitter quickly responded, saying all of that is based solely on the basis of a third party they also say, contrary to the allegations, twitter has breached none of its obligations under the agreement. so the back and forth continues.

not clear what impact this will have, if any will the trial potentially bell declared, as the court does at least consider the amended counterclaim we shall see >> what do the people in your world think will happen? >> most continue to believe twitter's case is much stronger. the whistle-blower didn't help musk on the bot argument, but they do -- at least it does give him another avenue to pursue, that the security of the company is nowhere near what they claim, but the ftc, the consent decree, they completed one in may, and they did fine the company at that point that was long after this whistle-blower had left the company, so it still remains unclear what they can prove. what they need to prove, sara, is that twitter knowingly misled

investors, and that it represents a material adversion effect that still remains a different thing for them to prove. >> except cramer. >> except jim. >> do you think it will happen at a lower price that is not at least what i hear and the board of directors of twitter is to think. but we have seen this happen many times in the past >> does the market think they're going to get a lower price does the market think he'll have to buy the company >> those are all the things going into the fact that you have a $14 spread between the current price and where we

close. as we go to break, a look at the road map for the rest of the hour, including this call out of goldman, saying the housing downturn has more to fall. >> and best buy, a top gainer this morning. a couple ev makers are moving to raise additional capital. we'll have a lot more. "squawk on the street" is straight ahead for you

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a new note from goldman sachs said the housing market could get even worse diana olick has more. >> we're already seeing new prices weak un up just 3% in q4 versus q3 still, that puts prices at the end of the year up 14% year over year, but next year it will stall entirely large declines seem unlikely we got the case-shiller report, showing home prices in june were

18% higher year over year. that's down from the 19.9% gain they saw in may. another home prices dropped from june to july, the first monthly fall in nearly three years, the single largest single-month decline, and this has caused a lot of ammists to call a housic recession. it includes not only big names, but also remodelers like home depot and lowe's back to you. >> pretty interesting housing data in the past couple weeks. after the break we'll talk best buy. but first, shares of first solar saying it will spend to expand

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look at best buy shares, they are higher, the company beating on both the top and bottom lines, comparable sales falling. michael, there must have been a lot of bad news priced into the stocks, similar to the stories with walmart, where they lowered expectation and came out to beat that what is your takeaway? >> yeah. thanks for having me on again. both best buy and walmart are above where they were when they preannounced so they did the right thing in terms of preannouncing the results were no worse, maybe even a bit better than the preannouncement. i think the inventory down 6% was certainly viewed as a

positive. >> how did that happen everybody else's inventories were up like 20%, 30%, especially in categories like electronics? >> so we are seeing inventory up across the board, and so best buy does stand out, in that sense is looking a bit better. we saw that in the goes margins coming down quite a bit, though, no worse than expected one of the issues to temper the enthusiasm, is retail doesn't operate in a vacuum. their competitors are still over-inventoried so they're going to have to mark it down. the good news is that was already in the expectations, and

in fact the implied fourth quarter guidance shows margins down, but not quite as much as they were in the second and third quarters >> so how does this target get to -- it doesn't sound like you're that enthusiastic, not spending as much on home electronics. >> sure, the business is not good right now, but we think it bottoms this year. we think they should resume some growth next year, both in terms of the top lines and the margins. we are reassessing our estimates for next year, although, you know, the results were pretty much in line, at least full-year guidance, with what we expected. so not expecting big changes to the next year, and we put a 15 multiple against our 2023 numbers. that 15 multiple is about in line with best buy's historical average, with a pretty big

discount. >> you cover a lot of these names, michael, where do you think the best opportunity is right now around categories and overall health. >> yeah, retail in general has yow performed the xrt in the back half of the year to start the clock at june 30th of course, underperforming for the full year, but in the second half do quite well one of our favorites is ulta that's a category that's held on quite well we saw that last thursday, yet still trading with an average multiple, so that's been a favorite name. we also continue to like vj's whol wholesale. costco is great, but bj's is

c catching up. >> big lots up 8.25% better than expected numbers. >> i don't cover that, but it's not dissimilar to what we are seeing among a lot of the names. they're going way up on good news, but the xrt has been outperforming, because there's a lot of bad already priced in we know inventories are going to be high. we can quantify that up 20% to to 30%, but the retailers understand that, and they're being very aggressive in marking it down. so i think the thought is that's going to be cleaner by the holidays demand has actually been pretty good it does feel like it's going to trough in the middle of this year, and be better by the holidays, and then that sets up for some up side next year

>> michael, thank you for joining us we're going to stick with the consumer now our next guest seems a demand-driven recession hitting at the end of this year or beginning next year. chris, you just heard from a retail analyst, all these calls, the demand has been okay so what are you looking for from the consumer >> i think the inventory issue is very well understood. a lot of retailers are selling inference torrie i any the real thing we're focused on is the impact of fed rate hikes hitting the real economy. you're starting to see it in the early areas like housing and autos, affordability there even before the fed started hiking rates, it was bad.

people thought it was a bad time to buy a house or auto even before that impact and negative real wages which can hurt consumers, or remain a headwind then you start to put in the impact of higher interest rates. banks now starting to tighten credit, where the credit being the lifeblood of the economy paints a gloomy picture to the consumer, as we exit the year this year. >> i'll take the other side. we just got a consumer confidence number that showed a big jump, 103.2 in august, better than expected, as gas prices come down, better sentiment, better spending >> well, that number was better today. that tends to be influenced by employment trends. here's the thing with employment jobs in highly inflationary

environments don't turn down until we were actually in a recession. first of all, the companies pass through the higher wages, and eventually that impacts the consumer so the behavior with the jobs market and confidence numbers, they lean more towards the jobs market is not shocking to me it's just reflective of what is something we haven't seen in a long period of time. >> so when, in your opinion, will we start to see real cracks in the job market today? >> i think we're seeing it, david. we've seen it with some of the tech companies starting to announce hiring freezes, layoff announcements. the reality is, as folks come back from the beaches,hamptons other places, over the coming weeks, you will start to see layoff announcements on wall street the high-end spending is really

driven by asset prices and housing. we're just starting to see cracks in both of those. it takes time, but we're going to see it. >> even though openings still look healthy we got a straw number on that front, too, which i think is confounding a lot of expectations. >> that's confounding. yes, does that mean it has to go higher for longer, which has been our view all year long? so just suggest that wage pressure is not going to go away anytime soon. >> chris, thank you for joining us >> thanks for having me. let's get a news update. contessa >> hey there, david. one person was killed when a train derailed in el paso, texas, hitting a gas line. nearby homes were evacuated as a safety precaution. according to the "the

washington post," a fleet of decoys recemens -- this is ukras decoys are made of wood, but the russian drones parent can't distinguish them and a panda at the san diego zoo got orthopedic footwear. lucas has lesions on his feet due to a chronic condition so the zoo turned to the organization thera-paw, which creates assistive products for animals with special needs i guess he has special shoes to go with the tux? something like that? >> something like that thank you, contessa. we're on the cusp of losing 4k ought sectors are red.

pretty interesting refuslevels . don't go anywhere.

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welcome back to "squawk on the street." were on track for a losing month. joining us this morning, liszt anne saunders, and scott chronert great to have you both >> you know, it's less than important technical numbers, but i think it affects sentiment so, it could be a trigger for some to be a bit more cautious, but it doesn't technically meaning anything compelling. >> scott, is it a lingers leftover shock from jackson hole is it about joules going the wrong way from what powell needs

to have happen is it about the perception of what qt is going to bring in about 24 hours. >> we're still looking at the hangover effects of the higher rates for longer message that containment out of the jackson hole commentary. i think that took an edge off 4,000 is an interesting level just because that retraces roughly half of that no change in our move. no change that we still think we can end the year close to 4200 that will be premised on some graduate relief from this rate pressure concern on the index, combined with what we think will be resilient earnings on the back half of the year. >> what about you, liz anne? you've been pretty cautious post-jackson hole, recease march

of the economy, where interest rates will go and how long they will be there. does it change your view >> no. in fact the macro narrative that developed around the time the market bottomed was a pivot to rate cuts. i don't think that narrative made a lot of sense, given, in our mind anything, the only reason the fed would have a green light to pause or lessen the aggressive pace of rate hikes would be a more significant weakness in the economy, not just a peak in inflation and the start of a move down. so i just didn't think that narrative made a lot of sense. underpinning it would have been this labor market, now i think you add to that, if you continue

to see strong labor market data, that in turn gives a green light to the fed to continue on their aggressive path. i'm not surprised to see some of this digestion now i think it could have happened before jackson hole if people were paying attention. >> it gives the fed the green light to see it more and longer, which makes it more probable we go into recession, and have a deeper recession, especially for europe and uk, which has to respond in suit with the dollar getting strong, and all of it makes it more likely central banks cut at the end of this is that wrong? >> no, it's not wrong, it's just in june the retreat was sufficient to get the fed to start cutting rates. maybe a longer, more severe recession, i think that's what

was missing. i think recession is more likely than a soft landing. a best-case scenario may be rotational recession or rolling recession where it doesn't hit the economy broadly, but rolls in pockets. >> scott, i'm just curious to get your reaction to that. do you agree >> yeah. i guess my spin is a little different. we're of the view we'll be dealing with recession conditions in the first half of next year. that's a lag effect of the rate increases we are seeing now, and the deceleration we're seeing in many economic indicators where we are starting to shift the discussion a bit here, in terms of traditional map road discussion, is, yes, we talked about soft versus hard landing in the economy increasingly we're talking about soft versus hard landing for s&p earnings here, our bias is that we think

earnings will have to come down in terms of expectations, but they may not come down as much as would be typical or normal for a recession condition. that combined with peaking fed hawkishness we think goes into this discussion. >> that leads us into a discussion we had with jim cramer this morning, that say the last quarter, bleeding into early '23 is optimistic. >> you mean in terms of earnings, carl, the outlook? >> no, in terms of equity price action, that you would be looking -- you would you through in weakness in september and october and you wind up with a pretty good end of the year.

>> i think we just started to see the adjustments being made to the sect half, so the detier yates is going to put upward president bush on valuations technically the fact that the 200-day is trending down, they did not sections flu reach that, i think there's probably more volatility before we can start to talk about what a true bottom looks like >> thank you guys, good to see you both still to come, we will have baidu's quarterly results. but first, check out the biggest losers on the s&p 500. it's a mix of materials and energies, with crude oil down about 4.5%, reversing a gain

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let's give you a check on shares of baidu. it reported its first year-on-year quarterly contraction in two years, but it's seeing recovery our next guest says the overall picture is improving ben harberg, always good to have you. >> incorporate, if you can, these results if bidi and what that may say. >> baidu's numbers are not too surprising majors, ten cent, ali seeing similar numbers. though sah ecosystems, cloud

looks positive, but overall, they were from a decline in consumption, and the company as well has struggled to really inn innovate, seeing a lot of upstarts eating into their core ad-generated business. >> certainly there are many opportunities in these names, but what about the longer term, with the covid lockdowns, the uncertainties, the government's actions to rein in some of these companies, and the overall performance of the economy how much of a headwind does that create we're in a challenging period. 2021 i think has one of my hardest years as an investor in china. the good news is we're starting

to see in developments where the government could improve both domestic sentiment as well as global appetite for china. the last 48 hours have helped that so the decision -- or agreement made between the s.e.c.'s public accounting oversight board and chinese regulators to allow u.s. regulators to start to review chinese audits, and shutting down a lot of those fears, you know, that over a trillion dollars of companies would have to relist. pin duo duo went up on the back of stellar net income growth so we're seeing some of the consumption returning. >> ben, i'm curious about your own approach

we seem to be diverging, in some ways develops different supply chains, different overall spheres of influence, how does that impact whatyou're doing i terms of investing in chinese piano competes >> very much so. it's continued to accelerate under biden. china looking to kind of ward off its dependence, so as a result of that. >> other coninputs, a.i. applications, we see that accelerating china also not wanting to be --

and then refusing to import western mrna vaccines, so we have invested in local ---ally wes at therapeuticing for covid as well as a who will ranges of other -- decoupling, between the u.s. and china, but very much investing into this china wall awatch. taiwan's military fired warning shots off a chinese drone. it's the first time that something like that has ever

happened >> the prospect for a war with taiwan is certainly the binary kind of, most dangerous factor in the economic condition in china today. our firm belief is china would not have a direct invasion of taiwan, unless taiwan unilaterally declared independence, but it's a threat that hovered over everything that's done around china for the foreseeable futures. >> i always like to ask as well, which is the last time you were there? how easy is it to go back and forth? do you still have to quarantine? >> i've gone there you the quarantine process once. i will go through it again soon. i came out a couple months ago after two years. i'll go back again this fall it's easier than last time

last time i went through a two-week hotel quarantine, this time it's seven days at home the barrier is getting easier. lockdowns and a high degree of sensitivity around zero covid. it's getting easier to enter the country than it was six months ago. >> appreciate that update, ben, thanks for joining us. meantime, as sara said r we have accelerated the selloff dow's down 400, 1.5% declines on the s&p, all sectors are red, all down stocks are red as that jolt's data and the confidence data sent the two-year back to 347. the ten-year bk acto 313 football, housewives... whoops. i just want to talk! get the best of live tv and on demand.

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welcome back to "squawk on the street," stocks lower, just above session lows right now with energy the worst performing sector in a sea of red so far today. if you can see there, we're down nearly 4% for that sector, every stock within the energy sector is lower on the day, including oil services and exploration names like haliburton, also

marathon oil and diamondback energy as well this pullback comes as we see an ongoing tug of war if you will with oil prices. you've got political unrest in iraq, signs of a potential supply cut from opec and its allies, which might push prices higher, all that action today, though, seems to be driven by broader economic concerns. with the iraq unrest not affectingoutput for now. oil prices are lower by 4%, and watch those energy stocks. i will send that back to you folks we exchange. >> worst performer on a market -- even bed bath & beyond has turned around. we've got a big show later on closing bell don't miss brian deese, talking the economy ahead of jobs friday and an exclusive with marathon asset management's bruce richards en00 p.m. eastern time, see you th we'll be right back on "squawk on the street.

ev maker lucid filing for a new offering to allow it to

raise up to $8 billion stocks under pressure. phil lobo with the latest. what do we know, phil? >> we know it's going to be an offering that could happen at some point in the future, exact securities remains to be determined, as you mentioned lucid, saying it's going to raise another $8 billion but this is basically an offering where they will determine at some point in the future exactly what securities, what the structure will be of the offering, and when it will take place they do need that cash as they continue to realize the cost involved of ramping up manufacturing, manufacturing that this year, by the way, they have cut back three times now, or at least twice from the original goal in january they were going to build 20,000 vehicles they cut that production target for this year down to a range of 12 to 14 #,000 vehicles in april, and then in august, the most recent earnings report they came out and said, we're cutting it again only expect to make 6,000 to 7,000 vehicles this year by the way, they ended q2 with

$4.6 billion in cash on hand they say, look, we've got the funding to produce well into next year, but now with the additional $8 billion, that means that they've got a little bit more of a runway as they continue to ramp up production one other ev stock to keep in mind is nikola, coming out with an offering saying it will be raising several hundred million dollars, $400 million selling stock as it continues to deal with the higher cost of production as well as the acquisition of romeo power it's also down more than 7%. david? >> yeah, one time high flying spac, go back a little ways there, phil, and see that stock higher than it currently is. phil lebeau, thank you on those upcoming potential capital raises. sara, the most important hour of the day is the one you helm at 3:00. >> thank you. >> i unfortunately will not be with you for that. >> i was going to ask you to join me to talk about twitter but we've got a bigger market story shaping up. >> we do

is it in part because at this point the jobs market seems to be going against what powell was hoping >> a two-fer on bad nudes for the markets today, good news for the economy, more job openings than what we thought was happening in the u.s. economy and also consumer confidence coming in a little bit better than expected. good news has been treated as bad news because it means just a bigger green light for the fed to keep interest rates high and to keep going and then we had this news report out of taiwan we're watching. >> there's a clock, it says 11:00. >> go ahead. >> we say good-bye and hand it over to "techcheck." >> good tuesday morning, welcome to "techcheck," i'm carl quintanilla, with jon fortt, deirdre bosa and julia boorstin. stocks sinking again, bouncing off a decline of 400 what is driving down the names to target at the bottom. in the metaverse, what apple's entry into the market means for meta. then later, the ceo of vmware, talk