>> you mean the markets? >> no, i mean outside. >> i thought you meant a metaphor >> it's friday have a great weekend let's take a look at what's been happening with the futures dow futures are still off by about 47 s&p up by 4. the nasdaq up by close to 50 that does it for us today. join us next week. look up, everybody bye-bye. time for "squawk on the street." ♪ good friday 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 a mixed premarket as the debate this morning shifts as to whether we're in a new bull. s&p, 20% off the october lows today, b of a declares the new bull market has legs our road map begins with the return of the bull, the s&p, as we said, highest close of the year, up 20% from that october low. plus tesla's rally, it is rolling on stocks now up more than 100% this year.

it is on track for what would be its 11th straight daily gain, and i did some back of the envelope figuring. i'll share that with you as well musk's overall numbers no worries, by the way that's meta's ceo, mark zuckerberg, when he's talking about apple's new vision pro, saying, "it does not have magical solutions to the laws of physics that they haven't already tried. let's get to the markets as we said. back is so-called bull territory. interesting, jim, to see bank of america be so plain about it the title of the report is "bye-bye, bear. >> i have to tell you, the five faqs was, i felt, not what i wanted to see. you don't want a bull market that's basically led by carvana. they did not mention carvana by name, david. but you have basically -- you have stocks who are reviled. why is the s&p trading at 20 times earnings all of this is basically like, we shouldn't be in a bull, but there's nothing we can do, and there's going to be fomo you want to be actively a stock

picker, and then david, of course, i have to mention right up front because he's the oracle of a.i "how i do invest a.i.? that answer, i've given a thousand times i regarded this piece, "bye-bye, bear,"s bye-bye, happiness >> whoa, done with that. >> good song >> okay. now that we've gotten rid of that, you defenestrated that piece of paper >> that's a good one >> you know that one >> everybody loves it. >> the reason why i didn't like the piece, it says, we're up from the bottom, and now what do we do? i would have like to have seen something that's more rigorous like maybe we shouldn't be here with a 5.5%. maybe we don't belong here, given the fact that inflation can roar back. but none of that no, it was all ethereal. it was all, frankly, david, an indictment of the bull market to come with many charges, none of which

seemed really significant, other than the espionage charge. oh, sorry. i mean, there was nothing significant about it, other than the fact that it was catchy. >> you don't think it was a rigorous analysis on the fundamentals, why the stock market should go higher. >> right and i don't want that. i don't want reportage about why we're in a bull. i want reasons >> do you have any reasons do you think we're in a bull >> i think we've been in a bull since the -- since october, and the bull market's led by tech, and as soon as we broaden out, we have the fiascos of carvana and the upstart short squeeze and lots of different junk and everyone likes enterprise software now, even though very few are making money, so now we're back in that world and you know what's going to happen next week week. four letters, begins with the letter "c," and there's always a line in front of it, and it's going to signify the new junk bull market that i most fear cava >> oh. >> red-hot ipo after that, it's going to be

biotech, then enterprise software, then nonsense fintech, and then we're back to where we used to be, which is awful >> be nice to see an ipo >> you're going to see plenty. the flood gate's about to open >> come on >> that would have been better the bye-bye -- >> no, we have had no ipo activity for 18 months, practically. m&a activity remaining at a low number, why john waldron from goldman-sachs walks around depressed all the time debbie downer. >> he needs lithium? >> there's not a lot going on. carvana may be important i don't know if it's going to open the floodgates. >> the difference between you and your view -- >> carvana sorry. cava >> forget. >> i got confused between carvana and cava >> it's carvana versus cava and they're the same thing when cava opens at a premium, what happens is john waldron gets off his anti-depressants.

>> he's not going to be happy with this conversation >> what we have is -- >> what do we have >> -- the kind of thing that you and i hate, the summer rally that is based on companies that are jobi >> short positioning is as dramatic as it was during the great financial crisis $5.5 trillion in money market funds. this could go on for a while >> it's not going to be anything we like. it's going to be on in the way it was in 2021 we had 600 ipos. half of them, you can't talk about on air because they're too small. we had an interview the other night, wework, today, david, someone took the price target down to 20 cents >> somebody still covers that? no, that's not -- >> well, they're paid. now, can i be not facetious for a second the cava deal is going to be red-hot, and there's so many biotech deals. there are biotech deals that are

caged animals, ready to come out ever here, and we're going to have to ring the bell, and it's going to be a company that has a cure for ingrown toenails. >> i will do it gladly it will be nice to have ipos >> you're going to have so many ipos, your head is going to spin >> we're not the only one important is a.r.m. >> maybe some restaurants. >> a lot of restaurants are coming many biotech >> what's interesting about the b of a call, jim, is that their fundamental analysis is still pretty negative. they're talking about the credit crunch you had 11 defaults in four weeks. >> that's why i felt that -- >> claims are spiking. >> if you go back over to carvana, which to me is the story of the day, up 11%, it's about the fact that they kept the bad loans on and the loans should not be that bad, and all is forgiven. a firm has very few bad loans. >> well done for those who hung

in there because it did feel -- the rumors of their bankruptcy were greatly exaggerated >> right >> but remember that period where the stock was in the low single digits. there it is. >> go back to what carl is saying, which is my problem with this market. with that piece. okay, here's five reasons why this shouldn't be happening, but it's going to happen anyway. i like the bull market that was led by the magnificent seven that's my kind of bull market, companies that are innovative, changing the game, doing great things i don't want companies that are used car companies that are now making $6,000 per unit that is not the stuff of a bull market >> okay. how about jovi and archer? are they >> the return of the flying car? >> the flying cars i haven't talked about -- my favorite moment was that morgan stanley analyst who estimated that market would be in the trillions. >> that's called the -- >> that was a classic. >> that's called the top >> how that was allowed to get through the censors there -- >> did you know the

word "cocaine" was in that song because it was not illegal at the time >> i've never even heard these names. where are those stocks these days >> those are stocks that are flying pigs. >> flying cars are back, carl. i'm so happy >> yeah. >> by the way, blade has actually had a good business, bld, but it's there with jobi -- >> it's actually, like, has passengers who are paying money to take them places. >> they're surpassing -- >> i'm sick of their hometowns ruining my time when i'm gardening. >> that was an issue, sitting on the roof we w they say, it's not us, it's the tourist people from jersey who come over. it's not us. >> army ue helicopters >> tesla is on track for an historic 11 days of gains, and gm's moving higher as well both companies, as you know, forged this ev charging network agreement, allowing gm customers access to 12,000 tesla super

chargers beginning early next year, similar to the deal that ford struck with tesla last month. in '25, gm will start building evs using tesla's charge port and yesterday, mary barra elaborated on the agreement during a twitter spaces conversation with musk >> when you think about the fact that, you know, ford, general motors, and tesla are all now on this charger, every american auto maker, i think this goes a long way to getting the right standard for the united states, and i hope others will follow, but i think this is really important because from a general motors perspective, this almost doubles the amount of chargers that the gm customers will have access to, starting, you know, in spring of '24 >> so, david, this is important. you spent more time with musk than most people >> yes, i have >> you know what's been absent both with mary barra, whom i think is terrific, and with jim farley someone who says, you know what? we've been in business for a hundred years. we've tried to lead -- be leaders, but we failed versus

this guy who started out of nowhere, and we're capitulating, because his is better than ours. they won't say it. why? too proud? >> because there is competitors -- you never would say that as competitors, would you? >> we deal in lead we're competitors? >> we've lost? >> no, no, no. there's -- why is there not more reverence about how this person's come from out of nowhere, and we have to adopt his standard, not our standard >> do they have a standard that's one question. also, policy out of the white house has sort of incentivized one standard >> that's true too >> if you want to get some of these dollars. >> we have a union president you were down there. is that the union? >> no, the factory is not union. and of course, i think musk, for sure, still probably is not happy with with the fact that -- and it's incredible to think that you had an ev summit and you didn't invite elon musk.

it's just -- how could you do that >> now i'm going to reveal what really happened. >> wait, what? >> it's a trojan horse for jim farley >> what's a trojan horse >> the charger farley's the winner. the f-150 needs nationwide charging >> well, all of these things need nationwide chargers you need a national standard, and that may be the most important part of this they're basically saying, tesla's is the national standard >> i'm saying that he won that battle >> yes >> but in the end -- >> no one's going to remember whose standard it was in the beginning? >> right >> it's just a matter of driving sales outside of california and palm beach >> yes that's why i'm telling you that ford is the winner ford is going to do $6 billion in free cash this quarter. street thinks too. >> you keep saying that. >> it's going to be right. >> okay, but you're really out there. when you're not right, i'm going to have to call you on it. >> you can do whatever you want. you think i care >> no, i don't i know you don't care. >> thank you >> how about the charging revenue that musk is going to

get, not to mention the credits on the model 3 and the cybertruck >> ever since that interview with david, and i saw the human side -- human face of musk, i love him i've taken the stock up for 11 straight days. >> i'm not saying it's not just a coincidence, but the stock is up about 44% since our interview. just saying. >> and his personal wealth >> i did some back of the envelope there it is. since the interview with elon, what if we up? sorry, 49% the overall market value of the company is up $266 billion, and elon's net worth, as roughly, $34.5 trillion. so, since the interview, $34.5 billion in net worth increase, which is only $10 billion shy from the entire purchase price of twitter. let's stop talking about this. >> it's obviously cause and effect, and i get that but i need to ask you this i've waited for this for 11 straight up. was that moment, the moment where he said nothing, what did you think at that moment that

calculated the odds that he was going to rip his microphone off and leave? >> i didn't think for a minute that he was. it was only afterwards, because carl was in the studio talking to other people who were watching it in a different way than i was, who thought maybe he was going to leave >> he's done >> i thought it was a dropped mic. i thought it was definitely going to happen to you >> i had no expectation. i didn't know what was coming, but i didn't think he was going to leave >> that answers that question. >> happy you asked that. it has gone quite well and to your overall point, i want to understand why you think ford is the -- >> tesla's going to control all the charging stations. people are going to be stopping at them every day. >> because the f-150, that was the one -- >> it's a growing revenue source for them they can do different things at the charging stations. >> if you want to be a business person making your rounds, you can't possibly have the -- a missed appointment because you ran out of whatever. this is about the f-150 becoming

the dominant ev vehicle of our time not just the dominant truck. but ev vehicle >> manufacturing costs are lower at tesla sourcing may be better components, superior in terms of batteries. competition -- somebody sent me some things who's obviously quite positive on it i'm obviously going through that that's the argument from the bulls. >> carl and i went do -- >> that's not an analyst, by the way. that's an owner. >> do you think it was charged by the traditional electric company? no it was by the f-150. i am telling you, i want you to put all your bets, every single chip on the f-150. >> what about gm and barra >> i like gm >> you really focused on ford. >> because ford is inexpensive stock that was -- that, okay, i'm going to reveal everything right now. i'm not supposed to. day after juneteenth, i'm going to ford. >> interesting >> you're going down there >> yeah. >> i take that back. i'm not supposed to say. it's called -- it's detroit, david. it's a big city. >> 313 >> they got teams there.

>> yes >> yeah. >> they got some teams >> yeah. >> line's going to be good this year >> the cat is out of the bag the f-150 is out of the bag. >> that's news cramer's going to ford >> i'm not going to be driving the f-150. i'm going to be driving a race car with my man. yeah i am actually going to go formula one. >> no kidding. >> i'm totally kidding there, i just did the biggest -- >> that's a long tease you just did there. >> we'll be talking about that in a couple days when we come back, some more fuel for the netflix rally today. we'll get some details as we get a new street high of 535 pretty eventful friday when we come back. unity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise

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and that means everything. ♪nothing is everything♪ now's the time to ask your doctor about skyrizi. learn how abbvie could help you save. netflix is on track to open at a fresh 52-week high. pivotal today, raising to a new street high of $535. meantime, "the journal" says that netflix's password sharing crackdown is paying off. they cite data analytics that between may 25th and may 28th, new subs in the u.s. jumped by the highest four-day rate since that firm started tracking metrics in 2019. there's some argument that that is beginning to show some green shoots >> maybe a hundred million more people, and we know, from the work that jeff greenstein at trade desk, a sub, an ad-driven

sub, is worth so much more than a nonad-driven this thing could have an explosion in sales so, i think the move is warranted, and i think the piece was excellent. >> the pivotal piece goes on to say that they continue to believe in the next few years, management tries to sell and they think microsoft's the most logical buyer >> yeah, i saw that. and i thought that was the kind of thing that i put out there as a joke and then david shoots town, and we all have a good chuckle. >> i kind of agree i think that's bizarre >> they can't -- >> i don't know why you'd include that in a note and want everybody to take you seriously about everything else you wrote. >> now, netflix, they blessed that, but they won't bless activision blizzard? >> yeah. >> the analyst does say it would require something about a different administration, a more favorable administration to consolidation. the idea that -- first of all, microsoft as your buyer is perhaps somewhat unexpected as a

name not completely >> he probably sat back and said, should i say tesla no maybe i should say -- >> it's more likely netflix would turn around and buy something. >> oracle is going to have a good quarter >> bernstein yesterday was trying to throw darts at the wall on who would buy lyft, for example. >> what a week this is people get up and say, man, i got to justify how much i'm paid let me come up with silly things lyft i happen to like the new guy at lyft >> lyft has a market value of nothing, right >> lyft is real, and the guy who runs it is real. >> oh, $4 billion. >> lyft is real. and they're doing special airport pickups that are -- that i think are going to help them no one believes except for me. i don't care i'm an iconoclast. >> yes, you are. you're one who establishes challenged beliefs >> you, on the other hand, are a legend i'm an iconoclast. when i say this, what i'm saying is we have no earnings to speak of, other than a company that

really had a genuine surprise, the docusign quarter the ceo, if i could speak for him, because he was completely incoherent, sorry, but he should have talked about health care. he was, he was, like, i don't know we're doing well i can make a much better case than he can. i thought about what to say. he came on and said, we're doing better than people think first, you talk about how billings turned out to be better second, you talk about medical records, and that is that -- david, epic took it, but he didn't go there. so, i'm going to have to talk to him later about how to sharpen his pitch. >> how to message. >> and then off to the races >> we're going to talk to dan ives later, who along with tesla, changes his target higher on docu as well. >> dan ives, i'm telling you, nobody like him. >> he's everywhere he's everywhere, that dan ives covers every company in technology >> it's incredible only interesting companies >> i don't know how he does it >> he's not going to cover samcerra, for instance >> no, no. >> no.

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what can you do with spy? ♪ ♪ take a look at nasdaq 100 gainers. we mentioned tesla and netflix already. adobe is in there as well, up almost 4%. wells goes to overweight, and jacks up their target by a hundred bucks to $525. we'll talk more about that call in a moment. the opening bell is a few minutes away, and don't forget, you can catch us any time, anywhere, just listen to and follow the "squawkn e re: eng ll" podcast.

>> announcer: is opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. all right, let's get to a

"mad dash. we also got an opening bell. what do you want to hit? >> there's a company that reported, and until reported the stock was just flying. it's called on holds this is considered to be a serious challenger in the footwear business. some people feel it is only a running shoe it's got much more than that but ubs says, okay, it's time. it's managed to kind of churn, and it's saying it's making progress in apparel. it's got a china strategy. carefully manages own growth david, i think the stock's going to explode to the mid-30s, and the compound annual growth rate, five years, 44%. so, this made it to a billion dollars in sales far faster than nike did, and i think a lot of people have asked me what about this company why is the stock solved? it had way too quick a gain. but now it is ready, and i think it's going to fly. >> i'm sorry, it's ready because -- >> because it went up too fast,

and now it's digested all that by consolidating >> it's consolidated >> i will tell you -- >> but the business -- >> it's just incredibly strong and it was -- the quarter was great. i have no idea why it went up so much ahead they did -- but the reason why it stalled is people felt there was elevated inventory level that's always bad. but they -- this piece says they like to carry a little extra inventory. this is roger federer's company. thiscompany is a stock that i have that is identified as one of my favorite junior pro stocks in the entire market, and you want to watch this it's a really great company. >> speaking of the consumer, did we get to the target call today? >> i can't it's too depressing. >> citi goes -- they were at $170 they go to $130, i think, somewhere in that range, on the idea that -- yeah. share and highly susceptible to a kind of discretionary

spending >> also the dot coms read very poorly there are a lot of people who feel that the decline is the return of student debt that's going to hurt. it's almost like -- >> let's get theopening bell here at the cnbc realtime exchange at the big board, it's clean energy company net power going public via spac. at the nasdaq, it's fintech company d-local, celebrating two years since going public i'm still getting over your view on how we're going to open the window on ipos >> oh, no, this is -- a spac today is indicative. cava is going to be -- cava is going to be so hot that people are going to say, you know what? once again, i can do an ipo, and david knows this is how it works -- they'll have a series of ipos where they'll do only one-tenth of the stock >> you mean 10% of the company

>> yeah, they'll control the flow they'll say, this is the next cava people will be sucked in it will work it works for the first three or four months, and it gets everything back again. summer rally they can do it >> that's a lot of pressure you're putting on cava just feels like that's not necessarily a name i would really hang a lot on >> you don't know cava >> it's not a technology company that there's a million of them coming behind it in the same industry it's not a.i it's just a restaurant chain >> but that's what's so seductive. it's something that everybody can understand it's visceral. >> i'm going to take the other side on this one opening up the ipo window >> done, done. do you have any of that spray? >> you're willing to put your money on goldman, morgan stanley, jpm >> the whole shooting match. morgan stanley, that's still reeling from gorman. they didn't talk enough about gorman retiring. that was seminal >> it is it's not until the end of the year he still will be chairman. i think what's interesting at morgan stanley and a question always for these companies is he set up this sort of internal war

between the three camps. >> i think it's internescent >> is it >> you're so given to hyperbole, i don't know the machinations of you. >> you got -- what, saperstein and pick, right? >> you're talking about the threesome. >> that are trying to become ceo. i just wonder -- >> what about your friend who had the -- >> it's counterproductive. >> you mean they had like bakeoff? >> yes >> three-way bakeoff >> correct >> it's always counterproductive. there's different factions, losers all have to leave >> yeah. >> it's winner take all, loser take none. >> i wonder why through the board you don't just, he's leaving at the end of the year and this is who's taking over. >> i don't know. i think it's the waystar situation. you have the three-way i think shiv gets it >> i'll tell you what. for all the worries about the consumer as we've just said,

etsy, carnival, norwegian, expedia all helping to lead at the open here. >> etsy, people feel they're going to miss at the quarter here we have pc saying they're going to miss the quarter. i don't think that's going to happen i think norwegian cruise is doing incredibly well. rcl is at the highest level since last time. and we're all long on money and short on time. >> okay. long on money. >> your life is short thesis is intact >> it's more than ever intact. sadly. >> liquidity, though, is not overabundant and that's been one reason -- that's really the whole story the last year, year and a half >> the money is going to come in from the sidelines >> is it

that's what i wonder who you're earning 5.3%, whatever the number is -- >> we got hype i was on a call yesterday where someone said, can you tell me what -- how much a.i. you have in your business and the guy said, none it was like the stock went down in the middle of the call. none whoever answers none to a.i. can you imagine? i mean, i'm doing -- my wife's company, filled with a.i >> maybe an honest answer. you don't want to say that you want to say, well, we're experimenting with all sorts of generative, but we're going to have our own language model. we're working with data providers to put together what we think is a model that's really going to help make us superior and drive automation and productivity >> my favorite was jack in the bock the ceo, they use a.i. for the drive-thru, and the ceo always goes up and tries to fool the a.i. and he can't fool it. >> you love that jack in the box. >> i do. 2,000 stores >> kind of brings us to meta, zuckerberg with comments about the vision pro, "the journal" with this piece about how

they've shown employees now, a twitter killer, maybe cold threats. we don't know. they're working to release as soon as they can >> didn't it read like a food fight between zuckerberg and apple? line, hey, mine's better because it's $499. theirs is too expensive, i don't like them. nah, nah, nah. >> yeah, it did, kind of it is a lot more expensive he was making -- he was talking about the fact you got to have the battery with it. it's got to be wired in. you can't go around. >> one has avatars, and one will have 3d. >> here's what zuckerberg says "our vision is fundamentally social by contrast to every demo that apple showed was someone sitting on a couch by themselves." >> that was really interesting and a bummer i played basketball with zuckerberg when i was in the metaverse. and i crushed him, in fact crushed him. dunked it. crushed it i felt like alan iverson, another philadelphian. that's my a.i. >> we'll always have that video

of the two ofyou, of you and zuckerberg missing your high five, because you couldn't figure that out. it's great great moment >> you have to scrape the bottom of the barrel to find something about me, chief. >> here's our little video look at jim. >> we'll probably get more news on this front because amd has a chip event >> that's controversial. amd is going to be very kofrl. are they going to be the chip that hp uses with microsoft to make it so that your pc is the way to go chat the next generation that's what i'm looking for. and i have the added convadvant of going to be right >> okay. if you say so. >> if you say -- dave, we have a podcast. no one heard that. what did you say >> i said, if you say so >> thank you >> you're welcome. >> next week's packed, by the way. >> it is >> not just the event at amd

we're going to have meetings at home depot and salesforce. and then there's cpi, fed, doj >> i think salesforce is going to be very good, but they did revamp their entire top team home depotis going to be very controversial because the last quarter was bad. they will have a spring that i think could be, you know, it's going to be difficult to have a spring if you can't see the plants got to get through that period >> we are. i mean, thankfully, the air quality today is far better in new york >> not in philadelphia >> no. i mean, here, we're back to almost normal. almost normal levels >> look, it's -- >> clouds and sun again. >> historically, their christmas, so to speak, i hope they tell a good story, but i think they have to talk about shrink they have a bad shrink problem >> they do as well, yeah >> i think they may have among the worst. >> home depot. >> yeah. because if you go on amazon, a lot of their stuff is for sale on amazon, but they don't sell on amazon. >> right you know, i mean, carl mentioned it you didn't want to discuss it, but downgrading target now at

citi, now, to a neutral from a buy. >> nobody's perfect. >> that's true we love that movie too >> joey. >> yeah. i don't know ask not for whom the bell tolls. >> well, it was not -- the piece is a painful piece, because brian cornell is not doing that badly. i predict next week, someone will say, this is the term about all the enterprise software companies. david, get ready for this term for the new bull market. derisked >> derisked. is it derisked it's been a rough month for that stock. you can see it right there >> they also have a bad shrink problem. >> yes, we know that >> remember, 500 million more. >> they're one of the only ones to quantify it >> they're also ones that keep stores open in neighborhoods perhaps they shouldn't because they're committed to the neighborhood, which i think in the end is going to be very valuable but right now doesn't have any earnings per share. >> they're talking at citi, we've seen a noteworthy deceleration in target store traffic.

>> did you see that -- >> that also figures into the culture wars where they have been -- >> it is culture wars. >> the right has taken them to task for certain displays. >> who else has culture? kohl's, target, bud light. a lot of people worried about bud sales come football season because unless they destroy it, it's going to flood the market with very expensive beer >> that has -- that has been a wake-up call to corporate america, and again, we've discussed this in the past in terms of when you choose to be visible and vocal on certain issues and perhaps where you don't. in this case, it was an advertising campaign that went badly awry, did not seem focused on their core customer >> no. but -- >> but they were trying to bo broaden out the base, but they alienated a lot of their customers, apparently. >> every day we debate talking about this because in our travel trust, it's constellation brands and constellation brands has been a huge beneficiary to this, but i am reluctant to say it

because i don't want to -- >> i mean, it's -- you can't ignore the effect it's had not just on bud's share but the beer market at large. >> it's upside-down now. moulson has been great a lot of it is modelo taking share from bud not at a bar but on insta carts look at that >> yeah. >> now, is this something that -- constellation spoke, bill, he's not going to sit here and say, hey, you know what, boy are we good and they're bad. nobody wants to do that. it's all -- it's not what anyone at the companies that have been winning wants to talk about. and i think that's right they shouldn't crow. what do you crow for >> it's not -- yeah, it's surprising in many ways. i'm sure not it's exactly what anheuser-busch ever thought they

would be dealing with. >> constellation never thought they'd be going up in nielsen this week. >> or that frankly target thought it would be seeing some reduction in store traffic as a result of -- >> target's tough because they're -- they want to obviously protect their cashiers at the front, but in their website, it's very low you don't have to protect anyone on the website >> right it's interesting because citi's got some additional work today looking at what they're calling, i think, household available cash flow, which they argue will worsen in the second half of the year, and yet, we did have household net worth in q1 at a one-year high. >> right but bank of america did come out with some numbers saying that spending has come down from wealthy levels brian cornell is an amazing merchant they have about a dozen of their house brands that are doing well this could change on a dime, because target is a loved institution in this country, and i think that can happen. i don't -- i think david's right. i think this is not an early call, and david, you know, the idea that america's going to

write off target and just go to walmart and costco, i wish it were true because walmart and costco are great, but if you have a one-bedroom or two-bedroom, you ain't going to costco costco is a core position for my trust, and i love costco, i think it's fantastic new book coming out about why i love costco, i'm going to interview the writer, but if you think everyone's going to costco and walmart but not target, i'm not buying that. >> the one tale they have, i don't know if you've seen the new york fed's global supply chain pressure index at an all-time low all-time low in terms of supply chain pressure now, there's, you know, we got the west coast ports we're dealing with, but you can ship anything anywhere right now. >> the moment that rich galanti, the ceo of costco, got rid of his fleet that he had bought, a fleet of boats to get stuff from asia, they sold the fleet. they don't need the fleet anymore. >> they don't. >> no. they get all the stuff they want did you know there's a new beef cycle? got to be careful. >> new beef cycle? >> beef is spiked beyond -- beef

could hit the cpi bad. >> and that is why, do you know? >> the herds are too small >> they are? that's a result of -- do we know why? >> i've been working on it, but you might want to take a look at tyson. tyson's down a lot and mostly because they've been horrible at what they do >> tiesyson >> i don't mean that they're really nice people some of the nicest people ever >> food prices here and in europe are increasingly the swing factor >> the steer -- the steer rally, david, is not to be ignored. you just can't you can't ignore it. >> can't ignore it i have been ignoring the steer rally. >> you got to change that. >> i do tend to buy more steak in the summer. >> get with the times. it's going to be one expensive barbecue for july 4th, and people are not ready for it. they're going to see the price of beef, and they're going to be shocked at how it's come back.

beef super cycle >> beef super cycle? >> beef super cycle. >> all right, carl we have that to worry about now too. >> we did lumber, and we've done sugar, and -- >> look, i'm just telling you. i'm putting it out there that beef has just rallied incredibly, and no one's paying attention to it, and it's going to matter a lot. people are going to be talking about it >> you know what i thought about you yesterday because when the vicks started flirting with the 12 handle. >> i told you. >> jim said 12, and david and i looked at each other like, are you -- really? >> he looked at me as if i had three heads. >> yes >> not an atypical look from me. >> i'm going to get taiwan semis. i'm going to get a new look at the vicks from my friend, mark sebastian, tonight, but he was the one who said, jim, look out, this thing's going to go and that was when it was about $20 this thing's going to $12. talk about home run call i like to give credit where credit is due. >> well, speaking of credit, nvidia is up again

2% >> oracle of a.i >> creeping back towards that trillion dollar mark that we obviously made a lot of, what was that, monday >> they're being very quiet right now, being cagey, nvidia very quiet >> well, how about taiwan semi closing in on $104 that's not far from a one-year high >> they're a winner. they're working around the clock on the h-200 by the way, china, deflation and no h-200 do you know how hard it is to break a deflationary spiral? >> well, japan, that's what you look at. it can be 20 years >> i'm not going to reiterate it you know my feeling. >> i do. paper tiger. that's what you said yesterday >> got to change that. everybody knows paper tiger. >> you've got to come up with a new one. think about it over the weekend, come up with a new one. >> i plan -- >> while you're not worrying about the beef super cycle >> while i'm weeding, i'll do it >> while you're weeding? >> i have to do a lot of weeding this week. >> going to do any reading along

with your weeding? >> i'm reading "the house of morgan." not as good as grant >> or hamilton >> hamilton was good >> i want to read something on the rothchilds you got anything >> they hated each other so much that may have been not about money. >> i'm sure our viewers now will help me out and tell me what good books to read, because i do want to start that >> okay, good. >> thank you in advance for your recommendations meantime, 4,311, jim it's been curious. we've seen citi and b of a and rbc, they left their target or left their earnings target, and that's not about positioning >> no, but remember, mike wilson did come out this week and tell you, time to go. now, i disagree with mike, but i have watched him on shows, and i have come to a definitive conclusion about mike. you know what it is? incredibly nice. >> oh, boy >> oh, that's not good

>> no, it's not good >> nice man. nicer than ives. >> i mean, the argument is that high rates work with a lag you see candidatada today, nega jobs print >> we'll see what happens as high rates come down, the money flows in i hope it doesn't flow into carvana. >> we very well could get 25 basis points in july >> no, it doesn't matter you see, you can't wait until the final. you always have to do it the second -- yeah i mean, marty talked about it. he was so great. we're gearing up it's just that i don't want it to be done with companies that have a 30, 40, 50% short position i would like it to be done broad, but the leaders have to be in the financials, because they're just from hell they're from hades do you know everybody keeps cutting price targets because we don't know what the fdic is going to do. >> in terms of surcharges and the like >> we got to get that passed and we're going to go right back, led by tech. watch oracle next week oracle is going to be extraordinary. >> yeah.

>> people should be buying oracle and they're going to be happy. buy half now and then buy half after they report. software katz is going to deliver like you wouldn't believe. it sells at 20 times earnings. that's what you buy. >> one of the earnings we'll get next week, along with lennar >> going to have a record quarter. going to build us back they can't meet demand like toll, like kbh, like pulte. >> there's no name that you can name that he can't discuss >> we should work on that. >> you can't go anywhere that he hasn't been. >> a quick reminder, by the way. speaking of that, you can get in on the cnbc investing club with jim. you try to stump him sign up and find out more at cnbc.com/jointheclub or point your phone at the qr code, and it takes you straight there. watch bonds today as we get the fed next wednesday of course, cpi on tuesday. and at 4,311, fresh highs for the year don't go away.

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one call we didn't get to was corning. morgan stanley ups to overweight they were at 35 and go to 38 better pricing, margin upside as a result interesting if you're paying attention to the display business. >> i also felt this is part of the broadband to the masses and that they didn't emphasize that on the call. i would have. >> it is moving, 4% in a decent tape s&p up 20 to 4315. stop trading with jim is next. listening more than talking, and a personalized plan ♪ to guide you through a changing world. ♪ 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

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let's get to jim and stop trading. >> i mentioned that target could always bounce back if you want to see an interesting possible bounceback, it's tall. they had a quarter that was widely panned and this morning ubs say now it's their top pick. if you take a look at that, that doesn't look like the target chart actually but i will say that if you give up on high growth, after a big decline, that's always been the wrong thing to do. i like this call by ubs very much. >> that's good

yeah citi, looking at the chart now of target foot traffic which is not great. >> target is not good right now. i'm saying brian cornell, back to school season, there are things that could go right. >> all right how about tonight? >> i have a company called oshkosh. they made a small deal it's hard to find a deal i will go to cab ba to do the deal and combine both. the lines at caba are insane it's a two shift line. >> depends on what day there's one down the block here. >> that's the one. >> monday through friday is no problem. >> so crowded you can't go. >> like yogi berra said. nobody goes -- >> jim, good weekend. >> you too absolutely. >> "mad money," 6:00 p.m. eastern time more tesla on track for 11 straight wins. that's the most ever we'll talk with wedbush's dan ives who raises his target to 300 as we're about 10 points

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good friday 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 stocks in the early action, friday going strong up 0.4% on the s&p 500. nasdaq up about a percent. again, tech is in the lead it comes off what's been a pretty strong week for stocks. 20% off the lows here are three movers we're watching tesla in the green on pace for its 11th consecutive daily gain. wedbush put the price target hike on the stock today. doccusign is gaining steam, results beating on the top and bottom lines and the company issuing pretty strong guidance with revenue up 12% from last year finally, keep an eye on adobe, one of the top gainers in the s&p thanks in part to an upgrade to buy by wells fargo as they get bullish on the company's a.i. opportunities shares are up about 35% in the

month. if you look at what's leading today, it's similar story to yesterday, consumer discretionary, technology, communication services and health care. guys, we find ourselves debating this idea of are we in a bull market or not. technically 20% off the lows is defined as a bull market, but we're not making new highs and the breath is still a little bit shaky. there's some excitement about the broadening out of the rally, people have been watching the russell 2000 index the small caps, but the russell still 8% from its 52-week highs look at the cyclical groups that would tell you, you know, bull market or not, transports are 21% off of their 52-week highs energy, financials, classically cycle groups, energy 14% off the highs and financials 11% off the highs. does it feel like a bull market? i don't know. >> certainly 4325 would give us a one-year intraday high bulls are still going to point to heavy short positions and a

lot of money still earning, 4.5, 5% in money markets that could fall in and create drama position flows we'll see if that happens. >> i don't know if you can call it anything until next next week we get cpi, inflation on tuesday, ppi and a fed meeting and a conference and updated dot plot on wednesday. ecb on thursday. and bank of japan on friday. >> we'll know more a week from now. >> we'll know about the direction. >> where things stand in the rate picture not just here but around the world. >> the other thing people puoint to is the fed balance sheet. we don't talk about that's much. the fed trying to shrink it and doing kwnchlts t., but we get weekly data since svb, which shows the amount of emergency lending. new data last night and the balance sheet was up 8.35 trillion the discount window continues to see less demand, which is good

less emergency borrowing. >> the bank lending facility has been used. i mean ultimately it may have been a very smart thing to have done, it may have helped save certain other regional banks it's $100 billion now. >> yeah. >> there's still need and there's still a little stress. it's way down from a level so i don't think it causes concern in the regional bank shares or at the fed who has been focused on regional banks, but a lot of people look at the liquidity and even though it's not straight up liquidity that the fed is adding because it's just loans, but they look at that rise in the balance sheet and they take some comfort in it, and see it as a bullish factor for this market which has been defined by liquidity and the fed balance sheet at a time when we're worried about liquidity. >> worried about liquidity because of the issuance that's coming from treasury and whether that's going to suck money out from other sorts of areas that it might otherwise go to or from existing money - >> isn't the thinking it's going to be more gradual than some

were fearful of prior to or right before the debt ceiling deal >> we'll know more, we get more in the coming weeks and see the price action as well we don't get the money market data until june 13th or so to see where it's coming out of you don't want to see it come out of bank reserves that would be more liquidity unfriendly there's also this backdrop of the economy and i thought credit suisse and jonathan gollup saying that the economic surprises lately have been solid. he was kind of bearish going into the year, and it argues for better revenue growth. >> yeah. risk of a near term recession has decreased and that comes a couple days after goldman cut their recession odds back to 25. >> so that's the underpinning here, right. better overall economy, moderating inflation. >> biz roundtable sentiment survey among corporates better capexrelatively healthy. >> the feeling that fed can get

away with bringing inflation down with an unemployment rate sub4% and an economy not contracting. gdp growth is still fairly healthy and the consumer not falling apart. that's not bad that's a soft landing scenario i don't know if it's going to come to fruition, but there's something there. bank of america put out spending data on the consumer they look monthly and stable month over month, slight increase, year over year, slight decrease there's the age range. i did this for you. >> oh, my gosh. >> the top line. >> tell me, top line look traditionalists. >> traditionalists and boomers are spending the most in the economy. the blue and green on top. >> i have to ask you, what's a traditionalist >> older than a boomer. >> oh. >> is that a new term? >> even older than you. >> older even than you. >> had to go there, didn't you what are you, anyway millennial. >> an old millennial upper end.

the point is the boomers are doing the work and heavy lifting, a lot of you guys, and spending more because of the social security adjustment that we got which was a big one for inflation, and also bank of america did this interesting research about how for the younger generation, millennials and gen-z the housing costs are higher on rents and mortgage payments because of where they're in the life cycle and that's a burden. >> they talked about this on "squawk" this morning. >> yeah. >> how they're beginning to prep for a tougher second half, especially when it comes to student sfloons that's going to be interesting because of the supreme court decision we're going to see less disposable income because of the debt ceiling deal a month from june 30th where the moratorium ends and they have to start making those payments. we'll see about the loan forgiveness issue in the supreme court which it impacts a very important spending cohort which is the younger cohort, if they are going to have to see

increased student loans. that weighs on disposable income and spending that's a headwind for sure there's a lot coming out, but the bottom line, things better than expected and that helps the market explanation here. >> you got this bofa note who joined us not long ago for a good conversation here, new bull market has legs. >> she recently brought up her s&p earnings for the year, went to 215, up $15 the potus op-ed in the journal taking a victory lap around some industrial policy moves, infrastructure act, chips act, ira, and then there's supply review 100 day supply chain review and ex-labor disagreements at the west coast ports you can ship anything you want anywhere around the world for about the price it was in 2019. >> supply chain is fixed. >> yeah. >> that's the transitory part of inflation and that has come down and seen that on the good side

the bigger question is services spend, spending on travel and restaurant the stuff that filters from the higher wages which the fed has been worried about and that's moderated too, but still sticky and high but i do think an interesting debate coming out of all this with all this tightening and inverted yield curve and signals of recession, bumping up against the inflation reduction act, infrastructure act, chips act, major sources of investment and potential job creation and then the a.i. boom as well. all of these things are kind of pushing the other way. and making -- giving the optimists a reason to think maybe this time is different. >> i hate using that phrase. >> you just did, though. >> you did. >> david did not weigh in. >> this time is different. >> i'm -- we talked to larry fink, he was saying no recession because we have the massive fiscal policies that are going to last for years and create a

lot of growth in investment and in jobs. >> no doubt. >> his argument. >> in fact, one of those is the ira and one of the beneficiaries is tesla let's turn to shares now, for what would be the 11th consecutive day of gains cathie wood joined "squawk box" earlier talking about her bull case to the overall ev market. >> i think it increases the probability our forecast of 60 million electric vehicle sales by '27, increased the probability that is right. we had globally 7.7 electric vehicles sold around the world last year, going to 60 million, going to dominate the industry, and i think having both general motors and ford on the charging network, the big factor, range anxiety, gets us there that much faster. >> of course, she was talking about that new charging deal with gm that will allow gm to ev

cars to use tesla charging stations, creating a nationwide standard in a way. our next guest just raised his price target, you saw that, to $300 a share on tesla. he says elon musk's playing chess while spors are -- excuse me, playing chess while they're playing checkers and, of course, two-thirds of the world is covered by water and the rest is covered by you, dan ives that's a lot of stocks in your universe that you cover. but tesla certainly right up there. what is it about this stock right now in a company that is giving you so much bullishness >> i think what's happening, it's the sum of the parts. i don't know if it's an aws moment for tesla what's starting to happen now, 313 area code, after years of resisting, theyrecognize they need tesla when you look at the super charger perspective from a revenue perspective, 2025, gm,

ford, they get 15% of share, incremental, $3 billion, $4 billion of revenue that was not there. i think what's starting to happen right now for tesla from batteries to super charger to storage, the sum of the parts thesis is now starting in the early stages to play out with investors. that's what's starting to happen with the stock in my opinion. >> there is another theory that yeah, he got them on the network and he got them on the technology, but that design, they have 100 years of refreshing designs with high frequency and better unit sales for the legacies than perhaps the teslas what do you think? >> my view is that musk needs gm and ford actually to be successful for the broader ev vision, and adoption in the united states. >> move the adoption curve higher. >> it's the jobs thesis. in other words, like from apple. i think that's really what's starting to play right now, you're seeing farley

and mary ultimately partner with musk because i believe this is just the first step. it's starting with super chargers and ultimately i think next step could be battery technology that's the golden goose right now is that they've built a castle, waiting for others to call, farley called, mary called, and i think it's just the start of what i view, especially with demand that i view it's stable in terms of we saw coming out of our [ inaudible ] the last few weeks, margins are starting to trough out the next one to two quarters and i think that's why investors are starting to look at this in a different story. >> explain the revenue opportunity from the charging stations how does tesla make money from them what are other opportunities it has from all these cars stopping at these stations? >> so 12,000 super charger networks when you think about they're really the only one, range anxiety, why would, you know, a gm, not buy an actual technology, not buy evs, because

of range anxiety super charger, tesla has it, they basically get -- they make per charge from a revenue perspective services, we think by 2024, it's about $10 billion, that we're talking about annually revenue, margins much higher than auto almost like software like margins. now gm and ford, you get what's called a million cars on that network, that's incremental in the billions, 2, 3, $4 billion per year that was not there. on an annuity. that's why -- i call it an aws moment, i think for many years aws not valued from an amazon -- >> right. >> now all of a sudden - >> pretty high multiple on a recurring revenue stream like that. >> apple services. i'll assign $100 billion you go back, we think it's $1.4 trillion i view it in terms of the reason i believe musk is playing chess and others checkers, you're now starting to see it play out. >> the flip side of that

argument, though, is that the competition gets stronger because people will buy it because they won't have the range anxiety and he's helping push them into guying gms and ford and always the bear case on tesla that competition takes market share >> that's a great point. i think calculated risk by tesla and what they're doing because ultimately, i think gm -- i don't view this as a zero sum game i believe gm is going to be successful i think ford is going to be successful i think it's the biggest transformation in the auto industry since 1950s we're starting to see right now, look at neo in terms of what we're seeing come out of china, they've essentially now, by the price cuts, they've essentially started to suffocate some of the competition. that was an offensive move now they start to put an iron fence around their install base and they've built in i think that's we're going into what i believe is going to be a golden age - >> you think the pie is so big they can all win >> i think the pie -

>> the 20 million tesla goal is achievable >> i think that's extremely aggressive i view it as if we can get to 3 to 4 million units with those margins, with software margins and i could also argue from an a.i. play, i could argue from an fsd tesla is an a.i. play and that's not valued yet. i'm just saying, look, the haters will continue to hate on tesla. nothing is going to convince them what's starting to play out, that sum of the parts thesis, which has never been discussed, i can tell you last night, most of the calls i got from institutional investors, let's walk through bull case, bear case where could it go those conversations would never happen prior all units, what's the -- what's musk doing on twitter, what's twitter over. >> linda yak rain no has started. it's got to be a big part of the excitement. >> a veteran like that takin

over, laid out in austin, the epic interview with david, and i think it weighed out more the vision -- if you don't believe it you don't believe it. investors, especially institutional speaking, i understand now the vision, now let me put a value on it. >> yeah. the move up just since our interview, we said it to $800 billion, just about $800 billion market cap the move up almost equated for what he paid for twitter for elon alone always good to have you. >> thanks for having me. >> dan i have. as we head to break our road map for the rest of the hour more on the markets with wharton's jeremy siegel augusting for a pause from the fed this week. >> semiconductors, the a.i. boom, chip stocks on a nice run. how do you position in this group from here? we'll have the number one chip analyst joining us. >> and big gains in small caps the focus on tech in this june rally, but it's the small and

mid caps leading on the index side we'll drill down on some of the names leading the way. slnow tea up 7%, 252 don't go anywhere. ♪upbeat musi♪ ♪♪ ♪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. i promise - as an independent advisor - a bank that knows your business grows your business. to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people

achieve their financial goals. visit findyourindependentadvisor.com when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block. hey, can you be less sister, more car? all right, let's get this over with. save hundreds a year over t-mobile, at&t and verizon with the best price for two lines of unlimited. i should get paid more for this.

you get paid when you win. from xfinity. home of the 10g network. welcome back to "squawk on the street." still in rally mode, s&p up 0.6%, building on the gains we've seen consumer, discretionary, technology service in the lead, materials and energy are lagging. investors looking ahead to a big fed decision next week and our next guest is arguing for a pause and another pause in july.

joining us is wharton school professor of finance jeremy siegel you have been so focal on this fact that you think the fed has done enough and to do no more. looks like you're going to get your wish in june, but the price for a hike in july and they might sound hawkish. >> . >> i think that's going to be too high interestingly enough, you know what the most important data next week might be, it might be thursday's initial flames report which comes after the fed meeting. that was quite a jump last week and i don't want to make too much of it because it's a volatile data point, but i always have taught and, you know, stated that initial claims is a sensitive early indicator we had kind of a false a month

ago when we found out there were fraudulent claims from massachusetts and went up and went back down they claim there was no fraudulent claims in that last report, but we'll see if it's repeated as far as that's concerned. i believe, you know, going in, western going into political season they have to be sensitive to what's going on in employment. if we see any faltering on that labor market, they are going to give up their rate hikes. >> i don't know. they've made it pretty clear that inflation is the number one target, and they want to see it come down more convincingly to target it still is double where it needs to be and is moving down slower than a lot of people expected it feels like they're willing to tolerate some pain in jobs and the market and the economy to get there. we haven't gotten there. >> yeah. that's true. but they still do have a dual

mandate, and, you know, the fed was created by congress -- it's not guaranteed by the constitution -- it has to be subject to some political pressures, even though it is supposed to be - >> agreed. but we have under 4% unemployment rate, 10 million job openings and jobless claims are still historically low. >> oh, yeah. i'm talking about trend here no that's why they could be, you know, as aggressive and hawkish as they are because really, we haven't seen, you know, very much unemployment. people feel confident about their jobs let me say one thing, if we get a negative job report in the next maybe not next month, next two months, it's going to hit headlines. first time since covid and then people are going to say, can i be assured that i'm going to get another job and that's going to play into politics and i think it's going to pressure the fed on the other

side and then they're going to say maybe inflation will get better we know, by the way, as i've reported, that there's a lag in -- it's a backwards looking indicator that the fed is using on inflation, particularly with respect to housing it puts in far more inflation than we're going to get. the fed has admitted that the second half of the year is going to look much better on the housing data i think, you know, the bulk of that inflation is behind us. that residual part it would be foolish for the fed to squeeze an extra point or two at the cost of millions of workers out of jobs, particularly in a political year. >> yeah. since we talked so much about canada this week, your point about the job market, they hiked again two days ago this morning negative job print. unemployment to 5.2. do you think they're starting to break things north of the border >> i mean, i haven't studded the canadian situation certainly that did affect the markets earlier this week. but, you know, when it turns, it

could turn quite quickly and i think it's going to turn heads, political pressure is going to come to bear and then we might be surprised by year end to have a much lower fed funds rate than the market predicts. >> so what does it mean for your call on stocks, which i mean if we get a hawkish message out of the fed and they go in the direction that you don't want to see which is moving towards a hike in july, does that make you weary of the market? >> i believe that the -- we're going to get a new dot plot, obviously, next week i believe the dots are sort of written on tissue paper. they don't know. chairman powell makes a decision about a week or two beforehand, given the most recent data, and we'll get a lot of data between here and the last week of july that i think are going to inform what's going to happen we may see a hawkish dot plot

come out and, you know, oh, my goodness, this is what they're going to do, but, you know, we know from '21 to '22 they just were totally different on what they did from what they said they were going to do and it was because of the inflation that came in so much worse. >> but it would be a signal. if it's a hawkish dot plot it would be a signal they feel like they're not done they think a market will struggle with that. >> not done on the basis of current data and if we get two more months of data that changes the mind again, the chairman has a lot of power here there may be a dissent even if it's a pause, i wouldn't be surprised if one or two will say i want to hike right now in there. so we might -- we're going to get discussion here. but i think if the data comes in like i expect it to, i think we may have seen the peak of the fed funds rate. >> professor siegel, thank you very much. appreciate you joining us. >> thank you very much. >> a lot of people agree with

you on that call coming up next, a close-up look at one area of the rally that investors may be overlooking. we're going to discuss that tethbrk. we're back in two. that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world. ♪

the s&p up 20% from the october lows there is a rally going on in somewhat under the radar part of the market right now for that we get to dom chu. >> the small caps. the major averages have started off on the month of june on the right foot here, but some of the biggest action is taking place in the small and mid cap averages now if you take a look at one of etfs that tracks the index, mdy, a lot of folks like to use it, it's up, tracks the russell 2000, iwm this morning, the funds have outperformed the overall s&p 500 by from about 300 to 400 basis points or 3 to 4% tracks the s&p 500 and within both of those other etfs, there's a wide range of names and industries leading the way higher so we want to call your attention to a few names that

might actually bring a brand name recognition to you. the first is yex up 50% this month as the enterprise customer service platform and cloud computing platform benefits from some of the enthusiasm surrounding a.i. and generative a.i. specifically. elsewhere you've got nordstrom one of several mall based retailers rebounding to start out the month up around 27% or so kohls and macy's and same industry group, up 20% and then chemical companies like kimmores after it and other companies settled pollution claims related to the forever chemical stuff in the water supply these days in certain areas. that stock up 23%. down today there are outliers victoria secret sitting out the rally, tracking for its seventh straight weekly decline, down 10, 14%, 11% on a basis.

keep an eye on in the small and mid cap indices. we've been tracking these over the last year, the s&p and russell 2000 track pretty closely and then they merge. we'll see what the trade tells us. >> it's been a pretty amazing split. great stuff. still ahead, nvidia shares up more than 170 points this year we're going to talk to the number one chip analyst who sees even more upside as we go to break, though, june is pride month and cnbc is celebrating all month long sharing stories of corporate leaders house's global head of partnerships >> the amount of stress and the emotional baggage that comes with hiding your own authentic self at work is immense. the first ten years of my career i didn't come out, and it just stopped me from performing to my true skills and my true capabilities the second thing i would say, particularly for folks in hiring

positions and organizations, is to go out and seek folks in the lbgtq community, particularly in positions of leadership. it's really important for towns able to look up to somebody who is in our community because it helps us have aspirations, just as all of us have aspirations in life girls... the chess club has gained an edge on our bake sales. we need more ways of connecting with customers, fast. i know some consultants with great ideas. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”!

welcome back former vice president mike pence called for the attorney general to unseal the indictment against donald trump before the end of the day. he made the comment on a conservative radio show. a federal grand jury indicted trump on seven criminal charges in connection with his miss handling of more than 100 classified documents that were discovered last year at his mar-a-lago home. russian president vladimir putin says russia will start

deploying tactical nuclear weapons when storage facilities are ready in july. signals the move in march as an apparent warning to the u.s. led nato military alliance over its support for ukraine. and unhealthy air in the eastern united states is forecast for another day smoke from wildfires in canada continues to travel across the border but there have been some improvements aqi no longer lists any u.s. cities in its top ten. meteorologists say the smoke should ease up saturday, definitely some welcome news for us east coasters is to see the sun out there the s&p up over 1.5% the nasdaq out performing that to bob pisani see what he's looking at. >> i got back from talking with the heads of global exchanges and agree we're knocking on the doors of new highs and yet it doesn't feel that way it's

strange rally we've been seeing. tech is outperforming but this week, cyclicals have been better the markets broadening out a little bit that's been a big complaint. tech is up health care has been flat this week industrials, metals and mining have performed well, not so much today here again the question about knocking on the doors of new highs. the s&p 500, if you take a look at it here in theory, new highs 4305 the closing high on august 16th of 2022 does that seem like a long time ago. we're well above that. the intraday high going way back to then. we'll see if we can pass that today. 4305 what you want to see us close above for a new closing high the reason it doesn't feel like a bull market, one of the things said at this conference recently, is just the extent of the rally is so narrow here, if you look at the s&p, we're up almost 12% this year, and yet

the average stock, the equal weight s&p 500, the rsp, is up 2.9% and about half of the s&p is down this year, about 50% of the s&p is down with the s&p up 12%. about a third of the s&p 500 is 20% below their 52-week high nearly a third of the s&p is actually in bear market territory. this is how topsy turvy things are and people kept saying at the conference the head of the exchanges we're at new highs but doesn't feel like it necessarily. the hope is we'll broaden out. we are broader this week we don't want tech doing all the leadership retail was up this week, metals and mining up, industrials up, tech flat. consumer staples and health care generally flat this is a cyclical thing this is the hope for a fed will stop hiking, flation will calm down and the market will broaden out. this is exactly why indexing has won. this is why vogel and vanguard

have became famous don't try to pick the winners and losers stay with the broad market if you own the s&p 500 this year you're great if you're long cyclicals and short technology stocks, you're trying to pick sectors you're having a difficult time. again, carl, this is why indexing has won out back to you. >> tried and true. thanks, bob pisani nvidia meantime riding higher yet again up 170% for the year helping lead the chip names higher as the street gets bullish on a.i. as you know. our next guest says those gains could continue and that's where we begin with stacy who has a buy rating and a target of 475 happy friday good to see you. >> thank you. >> you've written a lot about not just the historic nature of their guide but why there is a large gap between their upside and what the sector has done what's the answer? >> the gap in terms of the stock price or the guide itself? >> the stock price.

>> well, i mean, look, everybody right now is scrambling in the wake of that to find a.i. plays. it's clear that this is something that's real and if you're looking at the winners and losers, you have nvidia and then everybody else. looking for a pure play there aren't a whole lot of them nvidia is one of the few that are there and just given the magnitude of the uptick in the system on the back of that guide i'm surprised that the stock is not up more. we've said this, but i think it's clear to see, the stock is actually cheaper today than it was before they reported because the stock is up about 25%, but the system went up 50% plus. and indeed we can talk about it, but there may be room for more going forward. that's why it's performing the way it has. >> we talked about how it got cheaper the day after the guide. are there any quibbles about whether the guidance you think is durable and they can deliver? >> sure. i think there is a question

right now that this is a massive surge in is it real or is it panic buying are we pulling forward from next year could next year be a down year because this year is strong. it's possible. some point they will undoubtedly have a digestion cycle they will happen in the future that being said, data center for them this year is going to grow 90% plus year over year. that is not atypical for a product cycle. that's not atypical. one single year of annual growth would be the anomaly normally you get several years of growth as they introduce new products so just based on history, you know, you could have more. i think that's fine. then i would say, even if we're pulling from next year we won't know it for a while i would take the over rather than the under on numbers as we go through the rest of the year as they get more supply. the demand i think is there, and even though the street numbers went up a ton this year i would not be surprised to see them go

up more as we go through the rest of the year. >> i want to get to the sadder stories in chips and i guess i bet you can guess where i'm going intel. i'm curious, what, if anything, will get this going. the stock not that bad in terms of year to date. they have plans to build foundries in various places. tell me about your thoughts here. >> intel has been through the wringer and the bull case is it's hard for things to get worse. that is a case look, they've splashed -- the numbers have done come down a ton. foreign estimates are down 95% close to zero now. they slashed the dividend. got people excited gross margins are going to get back to 40% they're running in the 30s now, which is unheard of for these guys it's hard for things to get too much worse in terms of the broad numbers, the a.i. story in a minute, but

numbers in general, we were in a big inventory, you know -- big inventory correction part of the cycle now that is probably hit bottom and probably does get better into the back end we upgraded it recently. mostly on that call, the numbers in the back half were too low. the title of the note is we hate this call. and your listeners may not know this, intel upticked in the quarter. it does look like actually as low as the numbers have gotten they may have hit bottom that's a positive such that it is structurally, they still got wood to chop this foundry strategy, it costs a lot of money and unclear whether it will be successful, their core markets, pcs and everything are nowhere near where they were peak on the a.i. front, they've got a less compelling story and road map than some of the others out there. they've got some products.

we'll see how well they sell as a percentage of their total revenue and in terms of just the narrative around the hardware and software, it's a less compelling story in this environment. >> speak of an a.i. road map, amd, you have a price target that's well below where the stock is are people - >> the stock is ripped. >> yeah. are they overestimating in your opinion? i guess they are amd's ability to ultimately become a significant player in terms of this new stage of growth in a.i. >> so they will sell some parts. at least amd to their credit they have a road map with products on it that look okayp that look decent everybody is getting excited about the mi 300 they've the mi 100 and 250 they didn't sell many. people excited about the new one. they have yet to release any specs on it. even if they get traction, maybe it's a great part. they will have a part but no software ecosystem no hardware

ecosystem, no networks, application expertise, end market, like nothing that's got a part maybe. now there is a thesis that says the opportunity is so big that even if like these other players get the drags, that that would be big enough. maybe that's the case. if the market is going to be that big, i would rather own nvidia. >> well, we knew your space was interesting last year, stacy i don't think we had any idea how interesting it would get. >> always. >> into 2023 we'll talk next time have a good weekend. >> you too still ahead, uber jumping into the crowded car sharing market will it pay off? we're going to talk to one big competitor about the move next stay with us back in a moment dow up 100 points. ♪ ♪ 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

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which gives her more membership rewards points on her business purchases. somebody ordered some laptops? cynthia suarez. cfo. mvp. built for cynthia's business. built for your business. amex business. uber pushing head with its sustainability efforts planning to bring its car share program to north america which allows users to rent out their own cars our next guest has been in the space for years says it's no

surprise that its company's success has attracted competition. andre joins us now you guys have almost 3 million active gresz around the world, 320,000 different vehicles active in the program. how big of a threat is this uber move >> 320,000 active vehicles in the marketplace, you're right. it's no surprise that other players are interested in our space. as you mentioned in your introduction, we've been pioneering this new industry, peer-to-peer car sharing an the opportunity is massive last year our business turow delivered $750 million in revenue, up almost 60% year over year it's been profitable for the last couple years which is rare in the transportation and new mobility sectors as you know the business has grown quite a bit and we're not surprised that new players are entering, including uber. >> how is this different than -- i guess the people own it, but zip car, avis budget does

something like this? they haven't really taken off into major trenz how is what you're doing different than what uber is doing? >> i hope you download the app and try it out yourself one day. what's unique about our business compared to a fleet based model such as zip car is that we don't own any vehicles you know, we enable car owners to list their own cars and be able to monetize their vehicles when they're not using them. as you know, that fleet of under utilized cars in the united states alone is just massive we have almost 300 million cars in the u.s there's $1.5 billion cars around the world. and those cars are under utilized 95% of the time so what we've unlocked with our model, which is peer-to-peer, not fleet based, it's peer-to-peer, consumer to consumer, person to person, is an extraordinary selection of vehicles we've got 320,000 active listings, 1400 makes and models

across all the neighbors, across all the cities around the world. so we're, you know, we're much more ubiquitous than a fleet-based model that will be very much confined to the retail end points where they have retail agencies or parking lots. our selection and our network ubiquity is and provides incredible convenience and i think the actual convenience, the reason why we have been able to take off and build a multimillion dollar business versus others who have stalled or have and retrenching over the last few years. >> and you are profitable, it looks like? >> we are profitable. we have been profitable for the last 2.5 years and as you know, the new models have been challenging from a standpoint. whether it is ridesharing or other new transportation models,

we are delighted to be profitable after the last two years. how do you with the were coming in? and the brand name? >> obviously, we are ooking at competition but i would say that one of the unique things about touro is that we have an amazing that is customer first and we have always been since the beginning of the company. i am celebrating my anniversary this year and we have always been customer and our commitments to our host and our guest is that we will continue for the next 10 years, enable an even bigger and more success marketplace for all. >> i cannot be a customer because i cannot drive in new york. i think it would be a hazard to humanity. thank you.

we want to get down to amon. attorneys for jane doe and j.p. morgan art recalling diamond for a deposition. you remember jamie diamond went in for a deposition that lasted more or less all day in the epstein lawsuit against j.p. morgan, accusing j.p. morgan of allowing jeffrey epstein, a now deceased secs predator to get away with his crimes for years because they did not report them to law enforcement even though they had evidence inside the bank, allegedly, her sex trafficking. now, re-deposing jamie diamond as well as two other executives because they say j.p. morgan has released documents to them that are material to the case but have released those documents after jamie diamond gave his initial deposition and they say that is not there.

they want to have a chance to ask diamond about documents at issue that have been released late to them, they say. we don't know what is in the crucial documents but in a letter to the judge, the lawyers are saying that the documents are material to the case and provide new information about what j.p. morgan knew at the time. jamie diamond, the ceo and a high-ranking private wealth management executive at j.p. morgan and mary casey with the lawyers say was jeffrey epstein's banker for approximately a decade between 2020 and 2010. those are the officials that the lawyers want to have re- deposed in the epstein case. we will see if the judge agrees. we will reach out to j.p. morgan to see if there's anything they have to say. >> here are some other news about twitter breaking. it has

potentially, i don't know, negative things in it. can you fill us in at all? >> there was a document that was misfiled and it was recalled in the case. we have a copy of it because we are scouring up everything filed in this case and the minute we sort of understand what is in their, we will be reporting on that, as well. but this is a case where, now, discovery is over. that is the period of time where you have to turn over all of the information and both sides share everything they have and you move on to trial which is expected in the fall. so this one is heating up in the big question on all of this is whether or not we are going to see j.p. morgan settle this case. earlier this week, i asked jamie diamond here in washington, in person, whether or not he is going to settle the case and he said simply that he is not going to talk about litigation while he is in

washington. he is meeting with a group of congressmen, here. so we do not have information yet but clearly, the lawyers for jane to our suggesting there are significant document turned over to them late after the jamie diamond deposition and they want another crack at jamie diamond. the gap between bank deposit yield and the bed funds rate is hovering near a record high but it could start to narrow stream which could mean big payments for banks. we had that story here >> reporter: let's take a look at that point gap that you are talking about. thanks are paying depositors significantly less, nearly the widest gap on record and it is really the online banks that are boosting that average. if you extract the large brick

and-mortar banks, that gap is even wider with those institutions paying just a few basis points on saving at today's rates. it has been this way for a while and customers have largely gotten used to the idea of giving up yield on their cash to the enefit of banks which have been able to keep funding costs low but this dynamic is changing in ways that could impact the bank's bottom line. especially, in the second quarter. over the last two weeks, indicating modest decline, competition from higher marketing funds have been pulling cash out of the system. the regional bank crisis has altered some customer confidence, as well. so in order to capture and keep deposits, makes will have to capture more higher interest rates to the interest rates they pay, an indicator known as deposit data. for the top 10 banks, deposit data is up to 57% in the first quarter and some 41% in fourth quarter of last year and is

expected to continue. goldman sachs said the three that would take the biggest hit for more expensive funding include u.s. bancorp, city and j.p. morgan. we get a new snapshot of the deposit level, the feds data after the bell. thank you, leslie. not a great performance this year. j.p. morgan is up 5.5% or so. bank of america, however, which had a lot of those treasury fund balance sheets continues to be a focus for some is down from 11%. that will do it for us. don't go anywhere. we have another hour coming your way. 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

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and whether we turn the page on the banking crisis. in the meantime, zimmer is with us taking us to the other side of the street, this morning, on why the ingredients for a boom