that was strong. but tomorrow, we got -- and jobless claims but tomorrow, we got the big jobs report. >> but it seems less likely it would go negative now. >> this is a prelude to tomorrow who knows, some fed head might say, we're back to raising >> i might rejoin you for that big jobs day >> that would be amazing >> thank you for having me >> two days in a row >> if i sleep. >> make sure you join us she might be back. "squawk on the street" is next ♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at post nine of the new york stock exchange first day of june kicks off with the debt ceiling bill that does pass the house, moves to senate. big diet of eco-data today, adp runs hot, but yields mostly lower. ten-yea ten-year, lowest since mid-may salesforce shares under

pressure also ahead, the house passes the debt ceiling deal on a bipartisan basis and two fed officials are making the case for skipping a rate hike. >> boo >> at least this month plus, worries about consumer demand macy's is cutting its full-year forecast that news is weighing on that particular stock let's begin with this run for big tech, closing out the month of may in the green. the nasdaq did post its first three-month win streak since 2021, but we're watching salesforce today down in the premarket, despite a beat for its latest quarter ceo marc benioff was on "mad" with jim last night and broke down the results >> we're focused on our restructuring, improving our productivity, our performance, prioritizing our core innovations like a.i. and crm and delivering for our shareholders, and jim, as you can see from the quarter, productivity is up profitability is up. revenue is up. and jim, cash flow is dramatically up, as you saw these incredible cash flow numbers, and we're also increasing our margin guidance

for the year to our record annual 28% couldn't be more excited >> they do raise the margin guide for the year quarter guide, pretty good on eps. >> here's what's happening he delivered on what he said to the five activists he was going to go for cash flow he bought back more shares than he issued. the revenue was good bottom line was good what people didn't like was his alleged forecast for this quarter revenue. i tried to pin him down on it, but here's what people need to know who are selling it. this morning, 15 analysts commented on salesforce. 15 price boosts, not cuts, unlike okta, unlike crowdstrike. that means that if you buy the stock down 16, it will probably go down 17, 18, because these guys like to make themselves look light you buy it you don't sell it. you don't get that many price boosts and think there's not support underneath >> and of course the move itself is worth noting. >> up 68% coming to print. >> and this is a case where, i mean, the activists, i think it

was five of them at the end of the day, something close to that, but marc has -- >> fab five. >> marc took it to heart started with jeff smith in our interview last fall, i guess, early in the fall where we had that interview, and jeff smith talked about really this kind of, come on, focus on winning in the marketplace and for shareholders you can do both. and this is a company also that has been cutting jobs. >> right oh my god, yes >> and this is an economy in which cutting jobs is not necessarily something that is criticized broadly, at least, because it is seen as perhaps being helpful in bringing inflation down when you do that. >> the revenue doesn't accelerate, but remember, he has a big a.i. meeting coming up in june he's got dreamforce. he has this streamlined process where you can get all the verticals with one sales person now, the a-team. and david, i got to tell you, take it to heart, the activists. he did something i've never seen anybody do

he embraced them to the point that i think they were sick of him. he called them every friday night, what are we doing it was a new way to embrace activists. he basically said, i love you, tell me more and then he did it is that a great way? >> more importantly -- >> where would he be >> i mean, it was, in retrospect, the right approach, you would have to say, at this point, what he did obviously, they did bring on some more value act on the board, but most importantly, in terms of the confidence, their going to get that 30% nongap operating margin target in the first quarter of fiscal '25, and he's sticking with that, and that is really what many of the activists had been focused on, saying this is a company that simply underearns based on its place in the marketplace and its growth rate overall in the top line it just doesn't earn enough mup, a and that is changing >> i spoke to one of the five activists at length, and he

said, i know you know the guy -- i mean, is he for real this is unbelievable he said, what else do you want me to do i'm going to do everything the weekend calls. hey, what are you thinking here? and then like they call him back and say, look, i honestly think -- he's very different, isn't he i said, i told you from the beginning. he's a listener and a doer and he did it. thousand-point margin increase >> your point about okta and crowdstrike is good because those are two other companies that did beat and guide above or raise the guidance and they're both down. >> they had some problems, i think, although, now, i got to be careful here, because george kurtz did say there weren't problems with new accounts, and i know that i think you have nikesh on, palo alto, competitor they didn't have that problem. i think that crowdstrike -- new business, you have to give up margin so, he did not gain the margin that benioff was able to do or that palo alto is doing. big schism

okta, step up in worries about the economy. >> plus the downgrade today over at jpmorgan. >> that jpmorgan downgrade took my breath away and my voice >> yeah, your voice -- you're having one of those moments. but why was the downgrade important? why do we care >> because there's also -- there's real execution risk that todd mckinnon is being hit with again. >> at okta >> yeah. just not getting it right. okta -- no one says their product's bad. i don't know i did not like the fact that we see over and over again the remaining forms, they don't seem strong billings don't seem strong benioff, the billings were solid and are going to accelerate once we see that einstein if einstein is not like watson einstein was doing a billion queries a month, then a hundred billion, then a trillion a month. now it's doing a trillion a week and that literally is like -- and marc described it. you're a bank, and you have to make pitches on a mortgage

they're time-consuming no gpt. here's my report within minutes >> right >> this is what i think you should do. so, these guys, big ones, talk about the bank of america, jpmorgan, they are using this gpt like it's going out of style. >> you think that's crowding out other areas of billings and enterprise spend overall >> well, i think you have to know how to use gpt because your salespeople are much more productive and marc lives next to altman, sam alt sam altman, and he came into alter altman's dinner and he was using slack. like, wow. like tom in "succession. >> what about tom? >> well, you know, i'm trying to -- spoiler alert. winner >> tom wamsgans -- womsbangs -- >> frank reich denied -- >> that seemed a little too deep

to be real >> frank rich was two years before me in college he was sending all the movies as blurbs that guy's a gamer >> he was sending blurbs, and you were giving stock recommendations on your answering machine. >> exactly >> back to salesforce. what's that going to mean? what does that do? >> let's say you're trying to analyze whether you're going to get a customer or not. you can put the customer's stuff in, and it might tell you not to waste your time, which is so -- remember, if you're making 30 sales calls, and the data says, listen, that guy's not likely to be a client, next guy. >> really? who should i call first? >> that's a good question. i was called by salesforce twice, and the pitch was -- this is at thestreet.com, which is still alive. >> can't kill it >> you can't it's like rosebud. >> yeah. >> and i was on the non-good hit list, but i listened, and i know

i wouldn't have made it with chat they would have cut me >> wow >> yeah. >> so, yeah, slack gpt is going to be a thing. >> a lot of them are phony we had yesterday saying everyone is hype. salesforce isn't hype. what it takes is to jensen calling it jensen called marvel je jensen appeared at an epic launch jensen and marc. jensen is marc >> by the way, be noted, nine minutes in >> little bit late >> hasn't even said h-100, but now i have, so we got that out of the way >> it's pretty remarkable. there's a look at the run this year >> meanwhile, those -- if not for those five and a handful of others -- >> total return in may >> numbers are unbelievable. >> so many sectors down, guys, in may financials down 4%, health care down 4%. utilities down 6%. >> other than semis, and that's

jensen -- >> everything is down. >> they're all down. >> what does that mean for the market >> nothing means nothing. six stocks made money. that's the way it's been in this market for 15 years. why suddenly is it different hey, how about this one, david >> i don't know, everybody seems very focused on this one >> listen to me. here's the deal. listen to me, pitcher. i'm sorry. i was out of line with that. i take it back >> i'm never going to live it down that's fine. i deserve it at least i didn't stand ten feet away >> there were 330 companies that came public between '98 and 2000 so, amazon was the only winner and alphabet you know what? good amazon's triple trough time to buy. amazon sealed the programs it cut, unlike what cramer was saying >> you're not worried at all by narrow breadth -- >> it's been narrow forever. what can i do? it's going to go down for the next two days, and what can i say? it's been narrow breadth since

2009 it's nothing new >> the nasdaq is now outperforming the dow by 24 points that's the largest since its session in 1971. >> how about the mighty dow? this is sincere to begin 3m down, walgreens down, chevron down, kacaterpillar down, honeywell down there you go i mean, huh. >> it's a spectrum >> there's not -- >> we're going to get to some of the eco-data we got this morning, and there's a lot more on the way we'll get to retail as well, big movers in both directions. target trying to avoid ten straight days of losses. haven't seen nine in a row since 2000 thank you, b of a. there's a look at futures. we're back in a moment don't go away. i struggled with cpap every night. but now that i got the inspire implant to treat my sleep apnea, i'm sleeping much better. in fact, it's making me think of doing other things i've been putting off.

like removing that tattoo of your first wife's name. but your mom's name is vicky too! that's even worse. ( ♪♪ ) inspire. sleep apnea innovation. learn more and view important safety information at inspiresleep.com.

retail watch oday. watch macy's down in the premarket, slashing its full-year outlook. they say sales significantly weakened in late march, and then we're watching target as well. jpmorgan cutting the retailer to neutral. $144 they say they sit at the center of a number of consumer headwinds and controversies. the stock is hoping to avoid ten straight days of losses. jim, weakening consumer, grocery disinflation, losing share, they think. they think traffic could go negative, maybe. >> that was a devastating downgrade. people should run, not walk to see it they talked about how target overindexes to the millennial

customer and should student loan payments come back on, the company is more exposed than any other. that is going to happen. we know it's either after the supreme court or even before, and that's been, david, a lot of people who have -- remember when we got out of school and our parents said, you know, you already owe x? well, these people haven't owed x, and i think a lot of people go to target >> yeah. >> good for sofi, bad for retail >> exactly sofi was up big yesterday. >> right >> what do you think >> makes sense it's the largest single indebtedness people have, right? broadly speaking, i think. >> we have to talk about a very difficult situation, which is transgender and where target placed the clothes did they move them back? it is register safety. they're just worried they're worried about their employees. i totally get that >> i mean, they look at states where people are searching, on google, for target corporation,

and it's largely in the south, largely in the southeast, texas, florida, and that's a third of their store presence >> i know. if you take a look, bill newens yesterday, who runs constellation. >> what did they do? i'm actually asking that question, and many of our viewers may not know either. what exactly is it that they've done that has offended people? >> it's a very difficult conversation because they -- they kind of got it both sides so, they had swimsuits, apparently, that were -- because it's gay pride month -- in the front that might have attracted -- i really have to be careful with this. >> right >> might have attracted controversy. let's say that they moved some of them back because they didn't want the people at the registers to get hurt that's been their rap the whole way, whether it be stealing, but they've been consistent, the most open-minded of retailers, but they have been targeted, not unlike the bars that serve bud light. >> they got themselves wrapped

up into the culture wars >> right kohl's did too >> whether they meant to or not, and obviously, budweiser and anheuser-busch, we've talked about as well. the 30% decline. >> constellation, bill said, listen, they're taking big share, coming in very hot. stz up five. >> it's unfortunate. i mean, still -- >> i think that's what you have to say it's unfortunate we have such divisions in the country. >> right it's beginning to really demonstrate itself in sales. >> i know. >> in share, and at least in the case of bud and maybe now target in the stock >> i mean, i talked to the companies, and the companies really just want to emphasize in each case, look, remember, there are people delivering beer they don't deserve to be targeted or hurt the people at the register at the front lines, they don't -- they're not meant to be front-lines people it's tough >> i don't get much of it. >> when they talk about it, you know what they do? they say, what do you think?

because they're trying -- i don't know if people even realize how much they're trying to make everybody feel good, even though there -- in the culture clash, it's almost like you can't be like speaker mccarthy -- i could get in trouble on this, but i think he's doing a remarkable job getting the sides together >> now that the conversation in the house has ended, it's turning to, at what cost did it come for the speaker you know, to what degree is he now in danger? >> i think he's a little bit more of a statesman than we thought. >> they got it done. listen, the senate hasn't yet voted, but most likely, the debt ceiling is over and dealt with and yeah, it was actual compromise and negotiation between the two parties. kind of encouraging in a way >> he didn't want to be boehner, right? got tired of the whole thing i don't know if you guys know, he's not a quitter he's not a quitter

>> yeah. but listen, and whatever we say, the hatred and vitriol that you see -- >> we're going to get hatred and vitriol because we mentioned target >> of course of course. >> no comment. >> it evens out. >> to what everybody hates it >> yeah. everybody hates you. >> well, then, i got nothing new. >> it's a day that ends in "y. >> i got nothing for you i love him that's a very awarded show, "survivor. undersold, because the cog cogniscente, they think they're above everybody. like tom >> you think tom thought he was above everybody? >> no, he was just transactional. i wish people would watch it >> this is the actually the best business show. we'll get cramer's "mad dash" and the opening bell we'll get to some of the other retailers when we come bk.ac

you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

what if you could make analyzing a big bank's data... no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across clouds, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. ...to make quick decisions? check. aaaand check. that's the solution ibm and a global bank created. what will you create? ibm. let's create.

♪ let's get to a "mad dash." eight minutes before we get started with trading at the new york stock exchange. we talked a little retail. we didn't get to dollar general. >> no. >> which actually is worth getting to, especially market cap-wise, it's fun and we'll talk a lot of macy's, which is minuscule this is not. >> no, and what's interesting, david, obviously -- >> it's on its way to being a lot less >> right, but obviously, this is something that's supposed to do well in a slowdown but the numbers, david, the comp gain outlook, just 1.2%. i mean, you know, just terrible. from 3.35%

midpoint, 8%, now cut dramatically, and david, i've got to tell you, the tradedown, it didn't happen they're not a major winner now, it's very interesting >> maybe it's a reflection of the fact that the economy is still strong and the consumer is still okay, although we keep getting mixed results. >> that's how i read it. i want to pause. i'll tell you what's interesting. ryan reynolds, who actually -- people should know -- is a brilliant business person. he said to us, in "mad money," the aspirational trade is over people don't aspire. it's too expensive they just went, okay they went, okay. this is anti-aspirational. that doesn't come into play either my data -- look, my dollar general, remember, my dollar gen is clean you could eat off the floor, not that i would recommend that. they've got good bargains but stuff is $5 or $6. where's the dollar except for the candy aisle

cow tails, one buckerooni. >> got it. what does the forecast call for here >> pain. >> but the stock is already off rather significantly over the last few months. >> look, i've got to tell you, the forecast, the guide was so negative now you have to wait to see. i think you have to wait to see. i mean, they're just -- expect earnings to be flat to down 8% year over year david, we got to see >> look at that. >> we they're going to run >> three years, baby down 7%. >> this was an lbo that did so great, and remember, dollar tree's been a little bit of a pickle because of family dollar, but these stores, if you've been to them, what you'd be surprised is they're not a dollar. we go there because we like it i get a lot of cool stuff for the holidays, balloons and stuff. >> nice. >> but you know? >> yeah. >> do you have balloons? >> i don't do balloons, no >> get the helium.

>> thanks. that's great balloons >> it's what people do in america. >> opening bell, five minutes from now, and don't forget, you can catch the scintillating conversation any time anywhere by listening to and following our podcast.

the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. >> got some data to work through this morning according to adp, private payroll is up $278,000 in may. that's well ahead of expectations in the meantime, government data show that jobless claims came in at 232,000, jim. interesting, adp, they've changed their model a couple of times, but does it matter if the jobs number tomorrow has now been derisked? >> i think that one, it's been derisked, but two, there's another number that people are buzzing about. unit labor costs they were 4.2. people thought they might be 6 interest rates turned on that number suddenly, interest rates went down big on that number, not on the others that's what turned it. >> yeah.

ten-year now yielding the lowest since may 18th and actually, if you look at the ten-year yield, lower lows and lower highs as it has been unable to reclaim four >> well, we have a -- i think a very strange piece this morning recommending a bunch of home builders home builders go up every time we have a rate increase because the long end, what mortgages are priced off of, go down they're their own worst enemy, the fed. they got to rethink. >> it sounds like with jefferson and harker yesterday, that's what they're going to do >> harker is philly's own. don't mess with him. he's the only guy that can cover waller i felt very good about harker. i thought he represented prudence i think the mester team represents disappointed recklessness >> although jefferson was the one that got everybody's attention. >> very good very good. >> let's get the opening bell here on cnbc realtime exchange at the big board, it's ninth river, provider of construction

materials. celebrating its spinoff from ndu resources. at the nasdaq, computational software company cadence design systems. >> i had cadence, you know, cadence is very good -- and again, they are a.i. they work directly with nvidia i just thought i ought to mention nvidia >> what about nvidia >> cadence, which rang the bell -- >> they've been doing quite well >> they're doing well because they provide a lot of the actual packaging for semis. >> meanwhile, jim, it's been interesting, the split between what macy's is saying about the consumer and what visa and even wells fargo are saying about the consumer >> it's -- you know what again, i hate to keep making the case for skipping or pause i don't understand it. march was really bad for macy's.

they were having a good quarter. rack was good. but dollar general, bad. spending seems to be heavily linked to going out at night, and i think that could be -- david, i've got a new thesis, i'm going to bounce it off you >> ready >> ready what's up? >> when people work at home, and they're done work, party 4:35, the bars are packed. you can't even get -- you know, like, the bar? >> this is danny meyers' theory that people have been holed up in their apartment all day working from home. >> that was off the record >> like 5:00 p.m. dinner hour is jammed >> it is you can't get -- it used to be, if you wanted to go to one of the best restaurants, 5:00 reservation, 5:30, and you're fine you're not eating until 6:15 now that's over. you can't get in anywhere. >> no, you can't >> those people are driving. those are the student loan people these people are all driving this economy, and amazingly,

amazingly, when you're at home, you crave people but not the people at work you want the people at the bar >> yeah, no, i don't know. >> what? >> nothing i don't have an answer anymore on the wholework from home thing. i get there's people who have very long commutes, child care issues that is a driving force as to why people don't want to come back, but why younger people in new york city are not going to the office, i have no explanation. >> because you don't have to work it's fantastic to not work i work, and you know, like i got up this morning, i couldn't talk at all but i said, it's thursday. i'm not going anywhere >> i think your line was, pollen one, cramer, zero. >> i was writing on my mailbox, the pollen, "jim was here. there's so much pollen then i go take the cnbc investing club tea >> that's very nice vessel >> it's like a shotput >> you got a little mezcal in there, i assume? >> no, not in the morning. >> you don't really do it at all

anymore. you've cut back. speaking of cutting back, taking a look at -- i just took a look at snowflake, at lassian and cloudflare they've all been performing pretty well, jim, since their prints and you can take a look. you see the little -- not today. off maybe the back of the salesforce and maybe some other stuff, but they've actually performed fairly well, again, since they reported -- since they had declines from reporting. take a look. what is this saying? if anything. >> so, snowflake came on, frank slootman, and i said, come on, frank, it's bad. and he said, no, jim i mean, come on. like, jim, do the homework frank's a tough guy. so, absolutely what happened there was he was so down beat that he caused the stock to go down his negativity was shocking. >> yep >> but he also -- he just said, listen, jim, we're feeling it. we're feeling it >> i just -- >> cloudflare missed the quarter.

>> both down sharply after they cut numbers on their earnings, but they have since rebounded. the market seems to be willing to say, okay >> matthew prince, cloudflare, what did he do he said, i thought, jim, that they wanted me to go for cash flow positive. so, i went and did cash flow positive and they hated me no, they didn't. they actually liked you. at last, david, is a team product that works, and people thought that, you know, that a.i. was going to hurt them because you didn't need them anymore and that was untrue. atlassian is still -- well, ayx is the one i'm not sure about. i'm not sure how they're doing i'd like to know but frank did it himself my interview was really painful. i happen to like frank very much, and i said, frank, you can't be this negative and he was like, well, basically, as frank does, what do you know? but he didn't put it that way. >> he does have a tendency to say that, doesn't he like, what do you know

>> there's two rasmuss there's the one that i beat in the race, high school, and now there's the real rasmus that he went to in the netherlands that's why they call him the flying dutchman. >> got it. i always learn something here. looking at shares of lucid, guys, you know, still a $12.4 billion market cap company, obviously the ev maker, high end we followed the company with some -- fairly closely of course, ever since the early days, this a spac, and before there, wasn't it yeah >> churchill >> thank you down another 12-plus percent let me give you the news they are going to commence an offering of 173.5 million shares of common, and they also are going to place another 265.7 million shares with -- and raising $1.8 billion as a result with their largest single

shareholder at this point. that's the public investment fund, saudi arabia, pif. we talked a lot about how, when you are starting an automobile company, you assume an awful lot of capital you just basically, i mean, billions to get yourself moving. that's what's so amazing about what musk has done at tesla, of course, getting it through those earlier days by sheer will, by sheer force of his -- his ability to be a showman in some way, convince -- it's hard and lucid is raising $3 billion because they need it, but they're going to be able to push through what is a lot of negative cash flow >> churchill >> yes, it was the old churchill. >> i've identified what it is. we shall issue stock on the beaches, we shall issue stock on the landing grounds, we shall issue stock in the fields, we shall issue in the fields, we will never surrender it's churchill all along churchill had it wrong it was supposed to be stock, not about fighting the nazis

>> that's what you do, jim, you get to where you can break even, but we're not there. and you're competing against so many high-end automakers who are moving into ev, not to mention, of course, tesla, which continues, carl, to drop prices. >> although i think musk is back at the top of the billionaire list having surpassed arnault actually left shanghai, having met with some senior leadership >> people loved him. >> doubles discounts on model 3, trying to get rid of inventory and as carl just said, he is the richest man in the world again >> well, good for him. >> yeah, i mean, way to go >> i had wes on last -- >> by the way, wait. wait larry ellison is one of the richest men in the world >> larry owns an island. >> oracle was -- that was an all-time -- that was a new high yesterday. >> do you own an island? >> no. i just -- we don't talk about ellison that often >> he's a man that's an island >> he's like number five on the

list, and, by the way, owns a lot of tesla too >> he doesn't like me. can't get him on >> oracle shares look at that move they have had. >> because jensen said, watch oracle i left out oracle. >> the oracle cloud, also, people are going to. >> yes i said, look, it's amazon, right, and it's google, microsoft, and he goes, it's oracle >> interesting, too, jensen's comments last night in taiwan about taiwan supply. >> i thought that was great. >> he says he feels pretty good. >> i talked to gary dickerson, there's a national imperative to get here that's gina raimondo, commerce secretary. huge position in taiwan semi gary dickerson, by the way, reminds us that the real intellectual property in semis comes from the actual machines that make them >> actually, it's a great piece of sound that's worth listening to this is dickerson with jim last night. >> semiconductor industry is going from a half trillion to a trillion by the end of the

decade capital intensity is going up. and so that means you need more tools from companies like applied materials, and our share is also going up but again, we just weren't able to respond fast enough, and one of the biggest factors was, we couldn't get enough chips. so -- >> you yourself couldn't get enough chips >> we couldn't get enough chips into our supply chain. a lot of that -- we still have some shortages, but i would say most of that is resolved at this point. >> still near a 40% gain this year >> oh, it's great. they have 23% dividend boost, the most they've ever done continue to buy back stock just built this new plant that is so amazing. and i think that dickerson, if you look at that -- by the way, lam research too, tim archer doing well we have to bring these companies back, but what you're really bringing is a lot of these guys had business with taiwan semi. they now have huge business with us it's a very good plan that we have the chips plan turns out to be something everybody praises.

taiwan semi is doing very well >> although it does cost an awful lot of money to create a new foundry. >> yes >> i mean, intel's spending a lot of it, but they're bringing private equity partners for a lot of the equity as well. >> you know, they've always said that it costs five times as much to build a foundry in this country than it does in taiwan and that's because there's a great public-private partnership. i think that's changing. we have a great public-private partnership. in the same way that wes edens said, the great hedge fund manager, devoting a huge amount of time to transportation, we are doing public-private in hydrogen trying to get hydrogen costs down this guy, edens, you would love him. i think he's just amazing. >> we have had him on. he was a guest here. wes is a friend of the show. >> friend of the show. >> after this hour >> he's an acquaintance of my show >> he's an acquaintance. >> right >> we're going to bring him back here make that a one time only.

>> i'm reading the flagler book that he gave he. >> he didn't give me anything. he didn't give me a darn thing >> nothing for you >> jim, chewy is undoing a few months of losses here with this nice 20% pop >> well, look, he pivoted. he said, listen, we're going to make money, and then he did. the pivot does matter. he's also moving into toronto, poem like that, going international. and i don't know if you use chewy, but this reorder is just an annuity people put them on auto-order. i put g2, gatorade, on auto-order i have like 76 packs of it what do i do >> i don't know. you're not ordering that from chewy, though, your gatorade >> no, we were using blue buff, and they sent us pictures of our dogs, nvidia and lucid >> nvidia is no longer with us >> no, lucid passed -- lucid is here none of them are lucid

they did pass away after a long run. >> guys, nordstrom is up it's one retailer we haven't mentioned this morning >> rack was good >> it's a small company, again, like macy's. $2.6 billion market value. >> why don't we just mention the fab five every day >> well, i mean, there is a reason we mention the fab five, because, yeah. >> i was just going to mention -- >> they add up to, i don't know, $10 trillion >> i know, i mean, and netflix called time-out, but no one saw it >> i was going to mention vsco as well, also small market cap, but jim, that chart is a mess. down another 10% today >> they missed really badly. that was terrible. that was a terrible miss maybe one of the worst of the whole quarter. by the way, capri was -- they have not been an exceptional performer either, david. that's aspirational. that's what ryan reynolds said now, ryan reynolds, if you look at his background, he's right more than anybody else in the

world, he's einstein >> ryan reynolds is like einstein >> yeah. >> thank you for that. i'm sure he would agree. >> he's humble as all get-out. >> he's very nice. i didn't meet him. >> friend of the show. >> he seemed very nice from afar when you had him over there. >> is he even an acquaintance of your show? >> he's not. i've never even -- i didn't say hello. others were lining up to do so >> glad-handers. >> i did not >> not me. >> he seemed very nice >> one last touch on retail. let's do pvh, jim. 7% loss here >> calvin klein, not that good >> they do guide below on the quarter, but the full year intact we're calling them hockey still guides >> stefan larsson's money, i would not want to sell that. stefan larsson, the ceo, is very good $5 billion company i'm trying to keep up with you with the market cap. >> i think it's important to tell our viewers sometimes how large things are or small. >> mini-cap? >> that's not mini that's small >> small cap >> yeah, small

>> exxon lowest since late march, despite an upgrade, im >> oil is going lower. we're finding so much more >> normally, you said it has some safety here in the high 60s. >> i just thought that opec plus -- they've got to deliver this weekend everyone thought the russians lost the great american technology to fine and service, it would hurt them it hasn't at all i think it's more like this. wes edens, a friend of yours, he's got this deal where he's bringing natural gas to the -- coals from newcastle he's bringing natural gas to mexico remember when mexico was like the biggest provider in the hemisphere >> from the gulf, yeah >> he's bringing it right not gulf what's happening is we're producing like mad the other guys, no and by the way, our costs, some of them, like, if you look at pioneer, which my travel trust owns, there's 7 to $10, so they're going to pump all they want they've been trying to hold

back, but other guys are just -- chevron is doing very well, but they're pumping like mad >> u.s. production, 12.3 million barrels per day. that's the highest since basically covid began. >> going to 14 in two years. it's just -- there's no -- >> can we do it? we got data. >> pioneer went from 10,000 to 15,000 when you do it horizontal >> let's get manufacturing pmi, get to rick santelli good morning, rick >> good morning, carl. yes, we're looking for our may final from s&p global on their manufacturing pmi. their mid-month read was 48.5. take away a tenth, the final read becomes 48.4, still the lowest level since february, and it tell memorialized the notion that six of the last seven months have been below 50. the one that was the outlier, of course, was april, when we were 50.2 so, we continue to see the weakness in manufacturing. we have more manufacturing numbers coming out at the top of

the hour from ism. we see that interest rates are down across the board. and we are all expecting to hear announcements about issuance to replenish treasury after the debt deal finally gets passed in the senate and, of course, we want to monitor interest rates in the ten-year now that it's below that 3.60% "squawk on the street" will return after a short break >> announcer: the bond report is brought to you by pimco, a global leader in active fixed income

we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i

can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

some s&p laggards here, heavy in retail. you'll see names like advanced auto parts, dollar general, dollar tree, target, best buy, little bit of travel in there as well wynn and southwest not far from the top five, along with salesforce you see there at number two, down 6%.

not quite to yesterday's intrad layow we'll get stock trading with jim in a minute. ♪ (upbeat music) ♪ ( ♪♪ ) with the push of a button, constant contact's ai tools help you know what to say, even when you don't. hi! constant contact. helping the small stand tall.

i've asked about it a couple times. somewhat dismissive of it, likes his job. understand that people have adulation for him but does not get him to the situation he has no hul myty. >> he has no interesting in running. anointing is something he said in the past. if you want to make me president by decree, but the political process is not one in which i believe he's participating. >> yes, no - >> therefore not going to run and -- >> exactly so it's a nice thought i think a lot of people like jamie. a lot of people like everyone. >> and then also becomes a question, ackman is -- may not

have a sense for what's really the electorate, frankly, the idea of a businessman running for president. >> bloomberg and - >> i mean, by the way, iger thought about it a number of years back. >> right >> on both sides >> howard schultz. >> distrust on the left and on the right because of the populism there. >> dimon did say this week i love my country and maybe one day i'll serve my country in one capacity or another. >> he could be a treasury secretary. that's what you do after you kill the bank -- bob was my boss, boom don't bet against the dollar >> meanwhile he has no plans to leave jpmorgan and it's not a question - >> gorman -- >> out leaving morgan stanley and he's going to move up to executor. >> he's not -- >> no plans at jpmorgan for any succession the at this point not even tom trying to get that job -- >> seems like -- >> tom, succession -

>> i think that it's a nice thing to put people out. i do think iger, thinking that might be interesting look, we ought to go through the proper funnel, the funnel is not business love. >> no. >> right. >> no. >> it's a gauntlet to be sure. >> it's a gauntlet not unlike clint eastwood in that movie. >> happy birthday yesterday. >> how old - >> i don't know how old. i don't remember yesterday was the day. >> i put 100 on -- one of the greatest movies, gauntlet -- >> 93. unforgiven still. >> unforgiven. my nephew writes the show, clint deserves -- nothing to do with it -- five times a show. great line. >> let's get to jim and stop trading. >> we have crowdstrike, that's going to be significant tonight. talk about abbvie down a lot they have a drug, the greatest selling drug in history. the copycats are in.

kohera with mark cuban, 85% decline in price get this, it cost the system $90,000 per person a year. if you cut that by 85%, you get it to the point where humana, cramer, david faber, travel trust goes up. this is huge for the system. that drug is a wonder drug, but 85% decline. you don't want to be in that business anymore. >> let's talk about deflation. >> at the same time the system has the weight loss drugs that are potentially going to be used. >> what matters -- >> by the way, ultimately may save the system to be fair because of - >> what matters is that this is not what they're looking at -- they're looking at at how every time they raise rates, mortgage rates go lower that's what they're trying to figure out thank god for harker harker is so good. >> and nba

mlb. mls. >> championship starts tonight. >> the nfl is not for a while yet. sorry. >> wei were 84. >> i have no idea what you're talking about. >> who is the we who. >> sister of brotherly love? >> i'll speak to the team. i give the team speech. >> sixers? is that what you're talking about? >> we'll see you tonight "mad money." 6:00 p.m. eastern time after the break, we'll turn back to some of to you big earnings and moves in tech and retail don't go anywhere.

we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i

can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

good thursday morning. welcome to another hour of "squawk on the street. i'm sara eisen with carl quintanilla and david faber, live for you as always from post nine of the new york stock exchange starting off the month of june a little bit lower, but in a tight trading range. the s&p is kind of unchanged the nasdaq is out performing despite some big losses on earnings dollar general, c 3, ai, and a lot of economic data as well

30 minutes into the trading session. here are movers we're watching right now. rough day for a number of retailers, macy's, dollar general, pvh all in the red. more on what that signals on the state of the consumer. crowd strike, shares plunging, the company beating earnings estimates but slowing revenue growth fueling decline for this morning stocks down 4.5% off the lows. meta continuing its ride higher, stock at new 52-week highs today. shares up more than 120% since the start of the year. ceo mark zuckerberg kicking off an instagram live right now, teasing a big announcement for the company. julia boorstin is monitoring it and bring us the latest headlines as they cross. >> fresh data including ism. rick santelli once again, hey, rick. >> let's start out with our april read on construction spending expected to be up 0.2% it's a barn burner, up 1.2 that's the best level since november

now you see interest rates moving down most likely that has to do with the following data points ism manufacturing, 46.9. 46.9 that means that is the seven in the a row under 50 in contraction territory. prices paid. 44.2 that is the lowest level of the year and prices paid going down is a good thing most likely explaining the drops in yield. that is the lowest prices paid since december when it was a whisker under 40 we have seen a little bit more buoyant in the rearview mirror prices paid 53.2 that's a great drop. on the employment scene, considering this employment week, employment friday, tomorrow, 51.4 51.4 that's the best read going back well all the way that's pretty good, you have to go back to march, march to find a better read march of last year

finally on the new order side, not good news, the ninth consecutive month under 50 in contraction mode similar to the headline at 42.6 that is the weakest since 44.3 was march. put the two together, 42.6 drops you to the second lowest reading of the year outside of january when 42.5. we continue to monitor 10-year note yields seem to be approaching 3.5% and everybody is waiting for announcements on where the supply is going to come from with regard to the yield curve, t-bills to replenish once the final votes are tacklllied on the default aversion. >> some funky three-day cash management bill being released today. thank you, rick santelli i want to underscore the important point in that manufacturing read that rick

highlighted well, prices paid, 44.2, lowest number of the year. last -- remember last month, that was a worrisome numbers at a nine-month high. looking for signs inflation is moderating, if you're the fed, that is going to be good news. overall, i think it speaks to what we've been seeing out of the data lately, which is manufacturing weak, jobs strong, and consumer somewhere in between. mixed signal. >> hard to figure. >> the consumer numbers and see what they tell us. macy's dollar general both lowering their outlook dollar general getting slammed down 17% target on pace for ten down days dealing with political fallout macy's and dollar general, the quote everyone is reading from the release on macy's hits home, partly because they're in the department store and then the wholesale business they did cut their guidance and it was a surprisingly low cut on the lower part of the guidance

reflects a worsening macro environment, the upper end reflects what they've been seeing so far. if you look at what he said, planned the year assuming the economic health of the consumer would be challenged but starting in late march demand trends weakened further in our discretionary purchases and moved quickly to take the action to meet consumer demand and manage our expenses and talks about the revised guidance reflecting clearance markdowns, address spring seasonal merchandise in the second quarter with adjustment to the category composition and inventory levels in the back half of the year not great. >> yeah. they took a meat cleaver to guidance high end of the prior range was 411, low end of this range is 270. that's not a marginal cut at the edges and did say the weakness began in march across all kinds. >> dollar general saw increase in transaction, but decrease in traffic. it's category specific here. they cited the growth in consumer roles was offset by

declines in seasonal, home and apparel categories, consistent from the targets, even the walmarts, the home depots, t kohl's. >> visa, may payment volumes up year on year, nonpresent card spend up 7, and it was the performing dow name at the open where you have all these individual retail blowouts >> travel. travel is so strong. it remains strong. another thing on the credit card i've been watching i don't know if you saw this morning on apollo - >> delinquencies >> at the highest levels since 2008. past the prepandemic level the spike at the end. >> that's a chart you go there for us. >> wow. >> very pretty. >> but the important part on the end it's not looking pretty. >> it isn't. >> don't want that rate to go up rising stress on the consumer which makes sense. high inflation, we've got an

interest rate shock. >> student loans around the bend. >> the moratorium ends. >> all right. >> where are you on rates now? >> you have conversation yesterday from jefferson in particular to say maybe a pause is going to happen. >> totally changed the trajectory of the expectations and the odds we have that sound bite because it was important, he's nominated for vice chair of the fed. obviously, a voter influential one. here's what he said about the trajectory for rate hikes. >> a decision to hold our policy rate constant in the coming meeting should not be interpreted to mean that we have reached the peak rate for this cycle. indeed, skipping a rate hike at a coming meeting would allow the committee to see more data before making decisions about the extent of additional policy firming. >> the only important word there is skip. remember told you in the skip not pause mode

here is a very influential member of the fed, followed around the same time by philadelphia fed president parker also talking about a pause potentially or a skip in interest rates both are voters and they can wait and see how the data shakes out. it feels like the core of the fed wants to pause, they're worried about the regional bank stress, they see a lot of evidence that inflation is moderating, but -- weakness in the consumer. >> weakness in the consumer. >> we were just talking about. the jobs market is strong. for every data point i can give you a counter data point. >> adp that was better. >> although very poor correlation with the monthly jobs report. you know we also got unit labor costs which people look at as a wage proxy it's complicated to calculate. >> first quarter number. >> revised lower to 4.2%, versus the 6.3% prior that was a big and notable drop and we saw a treasury rally off that number.

so that's potentially good. >> eurozone inflation 6.1. >> better. >> prior 7 lagarde saying more work to do but the policy is working. so unlike last time, you're not calling for another 25 >> look, i think it's hard to argue when you get an article out of the journal, the fed whisperer, leaning towards a skip not a pause i don't think it matters if they skip june and go in july the important point is whether they're done, which nobody is indicating they're willing to say they're done raising rates and the next move that gets priced in the market is a cut or hike i don't think we have a lot of clarity on that. >> larry fink saying maybe one or two more. >> one or two more hikes. >> a lot of these ceos, they look at the inflation numbers and say, sticky. >> jamie dimon talking about 7% potential. at least he said it's a possibility. he didn't say it's going to happen

so you may end up being right, sara, don't worry, even if you're not in june. >> i think it depends -- by the way, we still have an important jobs number tomorrow and then an inflation number if we see outside gains in both of those, you might see expectations move up for june. feels like a lot are leaning towards kind of wait and see other big story of the morning continues to be tech as dow component sales salesforce falls after results. let's get to frank holland with reaction from wall street. it was a better report. >> sara, a report it was hard to find anything wrong with it and wall street seems to agree the consensus is that salesforce is a buy with tremendous upside and an attractive valuation with the focus on the potential of a.i. i'm going to show you the reaction from wall street right here dan ivs from wedbush, down more than 5%, head scratcher in his note this morning. goldman sachs with highest price target at 325, despite a 55% run

up year to date, most believe there's upside and analysts highlighting the mix of efficiency and profitability the numbers solid beats on margin and free cash flow. evercorp looking at the metric that gives insight into the future business. "mad money," ceo marc benioff admitted there is a downturn but pointed to einstein as a catalyst for a turnaround. >> pay really close attention when we call for a turnaround in the tech buying environment and where it's really moving from a measured environment to an aggressive environment i will tell you what catalyst of that will be i can see it with our customers. it's artificial intelligence >> 12th in new york city where you guys are, benioff making the case that salesforce should be included in what we consider a.i. stocks. >> and that could be helpful for them for sure, frank and overall as you can see the

stock is off the lows of the session. frank holland, thank you. >> thank you. the house passing that bipartisan bill to raise the debt ceiling last night, 314 to 117. kayla tausche joins us now to tell us what is next. >> all eyes on the senate which is convening just at this moment for what could be a long day of proceedings even before we get to a potential vote on the fiscal responsibility act. that is the debt ceiling deal that the house passed last night. several different senators from different parties, i'm told by a gop aide, a lot, dozens of senators, have proposed some amendments to the bill and that could hold up this process without a vote on those amendments, any one of the senators could say we're going to take this out a few days, and i'm not going to allow a unanimous vote to proceed here look for potentially later today, maybe tomorrow, a deal that would have to be brokered between the top republican "mad

money" -- mitch mcconnell and chuck schumer to allow the vote on some of these amendments which will mostly fail but allow them to get to the vote and out of town as the senators want to do there is urgency from the house and the fact that there was resounding bipartisan support last night for the bill when it passed 314-117 as you mentioned and there were more democrats than republicans that supported it. that is leading speaker mccarthy to call it a win some in his party are saying it should be a question of his leadership after we get the debt ceiling behind us, but here's what mccarthy said for himself last night. >> we didn't do it by taking the easy way we didn't do it by the ways people did in the past just lifting it we decided you had to spend less and we achieved that goal democrats are on the record supporting they are willing to spend less, willing to vote for the things that republicans

added into the bill. he said in a tweet, you bet i'm going to be coming back for more and said the budget process that follows over the next few weeks is going to be a little bit uncomfortable, so stay tuned for the next chapter first thing's first we have to pass the debt ceiling bill. >> what i hate is when everyone says this was a made for media spectacle, media made a big deal out of this. there were 117 house lawmakers that voted to what, would have been fine with our country defaulting we saw a move up in treasury yields and cdss. we got close to the brink. >> we could still get close to the brink depending on how the procedural processes play out in the senate you know, the x date is on monday, and if there is a delay by a number of days in the senate, we can get pretty close to that. you know, i'm told that if we do get close to that, there would need to be another communication from secretary yellen about what would constitute a default, whether it would happen june

5th. everyone's hope in washington is that the senate can go ahead and pass this, can get whatever deal it needs to get, go ahead and get those votes and get that chapter closed there were a lot of fits and starts here. times when negotiations were going on, looked like they were falling apart legitimately when you talk to people behind closed doors. people can say what they want but it was a close one. >> it was. thank you, kayla kayla tausche. as we head to break here's our road map for the rest of the hour tech stocks on a tear and the market is up nicely. why are wealthy investors putting record amounts of cash elsewhere. plus tesla is doubling down on discounts as the automakers report their latest sales numbers. higher prices and interest rates are impacting sales. meta with the big hardware announcement julia boorstin is listening in. >> hey, carl that's right mark zuckerberg making a big announcement unveiling meta's latest vr headset and this comes

ahead of apple's vr announcement next week. all the details after the break. dad, we got this. we got this. we got this. we got this. life is for living. we got this. let's partner for all of it. edward jones

and this is ready to go online. let's any questions?l of it. -yeah, i got one. how about the best network imaginable? let's invent that. that's what we do here. quick survey. who wants the internet to work, pretty much everywhere. and it needs to smooth, like super, super, super, super smooth. hey, should you be drinking that? -it's decaf. because we're busy women. we don't have time for lag or buffering. who doesn't want internet that helps a.i. do your homework even faster. come again. -sorry, what was that? introducing the next generation 10g network only from xfinity.

the future starts now.

announcement starting at 1:00 p.m. eastern this headset will start at $499, calling it the first mainstream headset with high resolution color mixed reality noting it's 40% thinner, more comfortable, also it has better displays and resolution using the next gen chip set with twice the graphics performance and pointing out this will be compatible with the entire library of titles for quest 2, which was their previous headset, noting there are over 500 titles available for this it's going to be available in the fall and unveiling more details at their connect conference which is september 2th. carl >> don't go anywhere stick around it is no coincidence that zuckerberg is unveiling this new product now because apple is set to kick off its big hardware and software event next week where

it's also expected to unveil a headset. let's bring steve covac into this conversation. is this an attempt to scoop apple? >> it's definitely an attempt. notice how zuckerberg did the splash here, almost certainly going to get from apple on monday, and carl, look, comparing these devices a little, we don't know what apple is going to announce, but we do have an inkling from analysts saying this thing is -- the apple is going to cost up to $4,000 and we -- like julia said, the new one from meta, the quest 3, is $499 so you can really see this kind of price war over a very niche market starting to develop more interesting than what these devices can do because it is such a niche market how can apple pitch it what is apple's pitch for this vr-ar mixed reality space. >> we've spent the whole morning and the whole year talking about a weakening consumer i mean what is the market for

something at this price point? >> interesting because along with this price announcement of $499 for the quest 3 they're announcing they're lowering the price of the quest 2 to $299 for the 128 gig one and then $350 for the slightly larger one. they're saying we want you to buy our older headset ahead of this new one coming out and really trying to reach that price point that could have mass appeal $250 we'll see how that compares to whatever apple announces and whether apple rolls this out as a super premium high-end device or something for the masses. something about the language that meta used calling it the first mainstream headset will see see apple introduce a mainstream headset and how much of this is about owning the ecosystem, right when we've seen the battle between apple and meta over the years, meta is at the whim of

apple for so many reasons. apple controls the app store and the ability for meta to target ads. meta wants to control this ecosystem and who is going to win this battle. >> steve, $4,000 is far from mainstream, four times the price of an iphone, most iphones, and ten times the price of what meta is introducing here. any idea what in the world they're going to actually offer in terms of given that price point? >> yeah. there are loads of reports out there, david i can break down what we've heard so far one is display if you've ever worn one of those oculus headsets, the resolution isn't super great. you can see pixels they have a screen door effect looks like you're peering through screen door instead of a clear image. the idea out there is apple will have a better screen technology, which is not cheap to make on top of that, there's reports that they're going to use their

n chips, the same chips that power the max after they moved from intel, and they're extremely powerful, extremely power efficient, for something like a headset like this to julia's point on the ecosystem i note that in some ways apple has a head start because they've been working in the augment the reality in the iphone and products for several years and built this foundation for developers and augmented reality they can translate over to this new headset. that's what a lot of discussion is likely going to be about at their event on monday. david? >> should investors care about this and how much? because for meta it's about selling ads. apple about selling iphones and services how big of a market is there for these headsets, these mixed and augmented reality headsets how big of a driver could it be for either company >> well, i think it's not a near term driver but it could be a long-term driver meta would like you to think it

could be a long-term driver. for meta it's not just about revenue they can generate from the headset but the revenue they could generate from owning that ecosystem. i think one key thing to watch here is the question of whether or not these two companies, apple and meta, are selling gaming device, the next generation gaming device, or something that could have a broader appeal and use case beyond gaming. as we've seen with the giants, there is a massive opportunity there if they can really get everyone who owns a video game console to own one of these. i think for a company like meta or like apple, which really is all about that mainstream use, think about the billions of people who are using meta's apps daily, is this something they can make a mainstream thing that everyone would own alongside their smartphone and i think once you get to that level, then yes, ten years down the line this could be a game changer for meta but things have to happen before then. >> all right julia, steve, thanks for a great conversation. still ahead, despite a big run for technology stocks and a

rally in the overall markets, as a result really of a big cap tech names, will investors put record amount of their money l llseer we'lte you where and why stay with us the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com (dr. aaron king) if you have diabetes, getting on dexcom is the single with a partner that always puts you first. most important thing you can do. it eliminates painful finger sticks, helps lower a1c, and it's covered by medicare. before using the dexcom g7, i was really frustrated. all of that finger pricking and my a1c was still stuck. my diabetes was out of control. (female announcer) dexcom g7 sends your glucose numbers

to your phone or dexcom receiver without painful finger sticks. the arrow shows the direction your glucose is heading-- up, down, or steady-- and because dexcom g7 is the most accurate cgm, you can make better decisions about food, medication, and activity in the moment. after using the dexcom g7, my a1c has never been lower. i lead line dancing three times a week, and i'm just living a great life now. (donna) it's so easy to use. dexcom g7 has given me confidence and control, everything i need is right there on my phone. (female announcer) dexcom is the number one recommended cgm brand. call now to get started on dexcom g7.

welcome back to "squawk on the street." cash is king right now, at least for some wealthy investors that is robert frank joins us at post nine covering those family offices which have become more and more important part of the overall financial ecosystem. >> they have ultra high net worth if you look at wealthy investors right now they are still very much in wealth preservation mode as opposed to growth mode, the ultra high net worth, those with $1 million or more in assets, have 34% of their portfolios in cash that is up from 24% a year ago it marks a record high going back at least 20 years, that's according to a new study from cap gemini their holdings in stocks the lowest in 21 years, stocks accounting with 23% of their portfolios look at alternatives, private equity, other privates, that's holding steady at 13%, more than two-thirds say their priority

right now as investors is wealth preservation even family offices, that's usually investors with 100 and more, are moving a lot of money to the sidelines, adding more fixed income from 12 to 15% and plan to trim equities lower to 24%. that's according to a study from ubs. we are not making big bets on anything right now. >> it may also be that if you can get 6% a year, %, $100 million you will be okay and that was an environment that didn't exist for a long period of time. now it does. that's, by the way, kind of risk-free. whether you go out in terms of private credit there's real opportunities available to get serious return. >> it was really surprising to me these are investors that have access to the best financial products in the world, around the world, and they're still into the 5, 6% risk free return. that is no matter what you

compare it to, really attractive and the amount of cash thatthe have right now in those cash equivalents is so high. >> we were just talking about, you know, we interviewed greg last week in santa bar, michael dell's family, merging, there was a purchase of $100 million worth of under armor shares from kevin. i don't know if you saw this - >> shari redstone from national amusements, moving in to help some of these founders and/or owners who are levered a bit to their stock and a want to not have to sell the stock. >> right under armor made a point, flank is not liquiditying, he's just selling. it's a nice boost of confidence. >> there is so much cash sitting there they're going to look for little opportunities, whether a big office building in new york suddenly become attractive from a price point of view or public equities, a lot of direct deals in the private equity space and private credit where you're getting 12, 15% returns for now

on, you know, top of the capital stack lending where the banks are not lending. they are finding some opportunities but not in public equities. >> the conversation right now in public markets is about structural growth and technology and i wonder historically if these offices have been first to jump into those chapters or if they've waited to see how it panned out. >> the tech family offices, those 40-year-old founders that have the big portion, they are early into a.i., really with sort of specific applications of a.i., whether in financial services or security as opposed to the big googles and amazon and apple of the world they are trying to find those but there aren't that many at that level you can get a serious investment the tech family offices are looking for that right now >> that's good stuff wow. that's a lot good to see you. robert frank. fresh hardware news out of meta the company betting big on vr. but what will it take for that

to pay off we'll get one analyst take after the break with the dow down 50 ahhh! icy hot pro starts working instantly. with two max-strength pain relievers, so you can rise from pain like a pro. icy hot pro. (torstein vo) when you really philosophize about it, there's only one thing you don't have enough of. time is the only truly scarce commodity. when you come to that realization, i think it's very important that you spend your time wisely. and what better way of spending time than traveling, continuing to educate ourselves and broaden our minds? (woman vo) viking. exploring the world in comfort. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

matching your job description. visit indeed.com/hire

welcome back i'm frank holland. your cnbc news update at this hour attorneys for donald trump asking the judge in the criminal case to step aside trump's campaign website posted a statement from his lawyers accusing the judge of having conflicts in the case. the manhattan district attorney's office has not commented yet. the former president's trial for 34 felony counts of falsifying business records related to his role in hush money to stormy daniels is set for next march. german prosecutors will examine objects found in a search in portugal last week but they will not say if they're tied to madelin mccann's case. investigators spent three days searching around a dam about 30 miles away from the resort in portugal where the 3-year-old was last seen 16 years ago in 2020 german police identified

a 45-year-old german citizen as a suspect in mccann's disappearance. jetson recalling the nova and star three wheel kick scooters because the back wheel could fall off the company has received 12 reports of this happening and one child was hurt the scooters were sold at target stores that's the latest. back to you. >> thanks very much. frank holland. meta shares, 52-week high as the company unveils a new headset. stock up 120% theater this year a buy on the name and 280 target good to see you. talk about what you think this new chapter might mean in terms of growth? >> i think the headsets historically have been very uncomfortable and the concept has not been good. with the early announcement of what it looks like having tried it on yet, seems like the comfort is better and it's lighter. that will solve that angle

the content piece is the bigger issue and i think anyone that has tried a headset has realized it's fun for about 10 minutes and then you rip it up off and feel like you're submerged in water and want to get out. so i'm not very bullish about this opportunity i think ultimately there's some great use cases. it will be more niche than mass market again, i give them to my kids and let them try them and they usually collect dust within a couple weeks after i give it to them that's the direct proof. the younger audience is feeling that way the older audience is feeling that way we have a lot of work to do before this can become mainstream. >> is the story about operating leverage and expense control are there more legs under that thesis >> yeah. there's a lot more legs. we're bullish on meta stock and

it was our top bpick because of the opportunity around streamlining their expense structure. so we've continued to hear from advertisers, phenomenal feedback about reelz, click messaging, their ad business and they're gaining share and quieted some of the tiktok chatter. they're doing very well on that side that is the biggest driver highest margin of their business, doing phenomenal well. what a u-turn zuckerberg took last fall to recorrect expense structure. we believe, again, on the ad side, we're bullish, that is the real catalyst for the stock and continued cost savings we see accelerated revenue growth in the back half of the year and continued focus on expenses, advertisers, again, have ticked up on their impact in the ad ecosystem. we continue to receive data points every week on that, that's good.

we're in a good trajectory the biggest concern for meta shareholders is the massive out performance of the stock now year to date. >> speaking of those shareholders, the ones i talk to, i'm sure you talk to a lot more, they don't mention the meta verse at all. they never should have changed the name of this company what they talk about, and i'm curious what you hear, is a.i., to the just the opportunity there at meta, externally but internally the way they've been able to become efficient using a.i. are you hearing anything similar? >> yeah. there's an opportunity you think about ultimately if you're browsing a topic on the floor fly generate content based on your wants and desires. there's a customer service issue, can they route this and do it via a chat bot versus someone sitting behind a desk. so i think, you know, we're hearing the whole a.i. movement at our software conference in newport and a.i. is the

centerpiece. microsoft spoke yesterday and almost fell out of his chair talking about a.i. everyone is excited. benioff. the whole industry i think the hype may be ahead of the reality. a lot of these products are yet to be fully consumed enterprise a.i. is still at the beginning, so we're big believers but at least pump the air brakes on some of the hype because the products are still not going to be embraced on the enterprise side for a while because of the concern around the data and ultimately what's the right thing to put in a.i. and what's not. we have huge confidence that the tidal wave will hit. it's going to be -- the enterprise for the advertising side for meta there's an opportunity ahead. >> such a weird environment because there's enthusiasm and spending ante same time things are softening elsewhere. looking at the reaction to salesforce earnings today.

okta, earnings, crowdstrike, is there reason to be more pessimistic about enterprise spending demand even though we're in a great a.i. hype cycle? >> i think there is. if you think about it, it's kind of -- this was launched at the beginning of the year by microsoft basically took a couple months on their turnaround from january to march to launch and then everyone followed and i think ultimately we're seeing enterprise demand fade and we're continuing to see the numbers, yet the a.i. hype goes higher and pushing these stocks higher. so i think ultimately the a.i. hype is real we believe that it's going to have a huge impact in how we all work and largely assist what we do, rather than replace us, but it's going to take time. i think it's a little bit of, a, things are weak, let's mask it yesterday on the salesforce.com earnings call they mentioned a.i. or chatgpt in the prepared remarks 72 times that is -- i mean it was like the entire call.

and, you know, they saw their weakest america's business ever, 10% growth and massively decelerated. transactional weakness, professional services weakness you know, again, i think there's a little bit of a mask on a.i. and everyone is doing it i'm not blaming salesforce microsoft. everyone is using this now as look over here, enterprise -- [ inaudible ], so i believe yes, the answer is enterprise demand has slowed. >> brent, finally, i wonder if you think salesforce is a model for how to respond to activist pressure or are these initiatives that would have been done regardless? >> they needed the activists i think this company was a growth company and marc benioff has pivoted quick and ultimately the margin was under their peers. they still have in our opinion huge margin upside even where they got it at 27, 28. this should be a high 30 margin.

you have tons of runway on margin he needed the activist and help and i need a lot of help every day and i don't know what i'm doing everyone needs help, and he needed the help and got it ultimately, he listened, and he bought into it, and he pivoted quickly. kudos to them forring may the ch -- kudos to them for making the change and we think the stock can trend to 250 they have get the revenue back they can only control what they can control and that's the margin they can't control the [ inaudible ]. >> for sure. yeah process versus outcome definitely gave them cover to change the culture thanks so much good to see you. >> thank you coming up in the next hour, we'll continue this conversation about what enterprise spending looks like and, of course, how to use a.i. and how investors should be thinking about it. the ceo of palo alto networks

joins us the stock was weaker on the back of xedstive crowdstrike rngseain and it's down only 2%. we'll be right back. [office sounds] ♪upbeat music♪ ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪

♪(lovely day) (lovely day)♪ ♪(lovely day)♪ a bank that knows your business grows your business. bmo. - psst! susan! a bank that knows your business grows your business. with paycom, employees do their own payroll. - what's paycom? a magic payroll genie? - it's a payroll app. - payroll is way too complicated for the average person. - paycom guides them through it. missing or duplicate punches, pending expenses, unapproved pto, on and on. - why would employees wanna do all that? - this could be a stretch,

but i think it's 'cause they wanna get paid correctly. i like getting paid correctly. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

pride month kicks off when we typically see companies rebranding with the reign logos but there's been pushback against companies looking to celebrate pride. joining us brandon looks at color from a new survey by lbgtq rights organization glauds and we had a conversation with cramer about what a more difficult conversation it is this year. >> it's true there's been a lot of pushback already, right now is when you normally see more lbgtq couples in ads, more rainbow mer much at target and kohl's glaad publishing its survey. they asked over 2500 americans who do not identify as lbgtq about their comfort seen

community represented in ads take a look at what they found a majority of americans, 70%, believe companies should support the lbgtq community through hiring practices, advertising and sponsorship. but when asked about ads specifically, three out of four said they feel comfortable seeing lbgtq people in ads and almost 70% said that they reported feeling comfortable seeing an lbgtq family with children in those ads. why is this so significant well, there's already been a lot of pushback against companies this year. bud light came under firing after partnering with dylan mulvaney, the marketing executive behind the partnership took a leave of absence. target and kohl's are the latest facing boycotts over pride displays target removing inventory e to protect employees facing threats and harassment from customers. now look, the impact can't be ignored, right, because these

companies, it's been argued, should understand their consumer base ever corps out with data showing a 30% decline in volume sales at bud light in the weeks since the ad rollout with dylan mulvaney you see the downgrade from jpmorgan saying there are too many concerns rising glaad saying companies should not be pulling back but doubling down this is a frimg minority amplified through their social media platforms. >> interesting that, for example, in the target case, they've carried carried pride merchandise for years. >> what is being targeted is the transgender and gender nonconforming community. items being mislabeled on social media by consumers as being advertised towards children when they were being advertised towards adults so you have that partnership with bud light, with the transgender influencer dylan mulvaney i would also just add that only

28% of nonlbgtq personally know a transgender person from the glaad data as well it's because of the impact with the transgender community. >> is this a communications problem by the company is it marketing issues is it -- like what is the -- where is the -- are companies making a mistake how are they dealing with it >> it's a great question i think that what glaad is saying the mistake is they're trying to back step because now they're not only being asked to boycotts are only called from one side and the other side the lbgtq community is now saying hey, you're not going to stand behind us, like we no longer want to shop at your brand. >> they were worried about employee safety. >> true. that's one of the three things that glaad does emphasize in their call to action, target we want your merchandise on the floor, statement you support the community but include we want you to protect your employees without having to also pull back from your support of the community. >> a lot of companies are going

to look at that sale number from bud light and get scared i mean down 30% for a major brand. that gets people's attention. >> it's true you have to know your consumer base right. like companies that you cover, sara, nike, we're talking about a different demographic there, so wit with the merchandise - >> in other words, bud light failed to understand its consumer i have companies that want to stand for equality and embrace everybody, but i think dylan mulvaney was a lightning record. >> this is what we've been talking about year after year, the rainbow wash companies can't just change their logo to a rainbow and that be enough to signal inclusion or representation they have to think about how they're standing behind their statements as a business and what the case is for their consumer and stake holder. >> now a debate in the boardroom, no doubt about that thank you. a check on the markets

dow has gone positive. s&p trying to inch its way back to 4200 in what's been an eventful week. nasdaq was on pace for its first weekly decline in six.

♪ ♪ every day, businesses everywhere are asking. is it possible? with comcast business...it is. is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic across all of our locations? yeah! absolutely.

with global secure networking from comcast business. it's not just possible. it's happening. ev automaker lucid , that fund already owns 06% of the automaker. this is a company that did go must be through spacs. you have spac sponsorship holding a lot of shares. a great deal of deluifficult dit dilution not good meanwhile, tesla cutting prices yet again. it's doubling its discounts on some already made model 3 cars along with some others all of this as may auto sales are starting to come in. stronger than expected

let's go to phil lebeau and can fill us in on a lot of things we haven't mentioned yet. phil >> david, there is no slowdown with the consumer when it comes to buying a new car or truck used, slightly different that's a different story completely that's start off with toyota we're hearing from the foreign automaker in terms of may sales in the u.s., up 6.4% compared to the same time last year. hyundai up 18% compared to may of 2022. that was basically the low point for auto sales last year so, when we get the numbers later today, and we get the sales rate, the expectation is that we'll see it come in somewhere in the range of 14.7 to 15 million vehicles that's the sales pace. the expectation. inventories are up 48% there's greater selection when you go to the dealership incentives up 64% compared to the same time last year. take a look at shares of ford. i'm showing you this because we'll hear from ford and its may sales tomorrow

bottom line, there's still plenty of pent-up demand out there and we're seeing it with new vehicle sales. we'll see a strong and robust report today >> phil, i want to come back to you on lucid these companies in early stages, so to speak, consume an enormous amount of cash including rivian explain your expectations when you see them raising another $3 billion. do they ever get to that promise land of free cash flow and how long do you have to wait >> well, rivian is a little clearer than lucid on when it appears to get to break even rivian expects they get to that point toward the end of next year lucid is a little different. you touched on this when you were talking with carl and jim these companies, a startup automaker eats enormous amounts of capital that's what we're seeing with both of these guys

they're not at a point of volume where they can see free cash flow. >> and not to mention competition coming for lucid, which is at the high end, right? >> absolutely. it's very airzona over $100,000. you won't get massive volume, but what's up there, those brands are coming in with their own electric vehicles. that's going to make greater pressure on lucid. >> we'll keep following it as well thank yo pu,hil lebeau "squawk on the street" is coming back right after this. than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back.

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

good thursday morning. i'm carl quintanilla with sara eisen. setting the agenda today -- the manufacturing data does suggest a pause. and the inflation data says hike the jobs picture continues to defy all kinds of gravity. what does it mean for the fed, a pause, a push higher we'll talk to morgan stanley. palo alto network says we'll talk to him about his message to investor. later on, a pulse check on luxury real estate the ceo of douglas elliman is