to 240, it might be a different story. it is the notion that there is some developing weakness, who knows? the reason we are going up is because it only gives you a month. if you go further than that, you might start seeing it. but i'll be here, tomorrow? >> yes. good thursday morning. welcome to someone on the street. o night of the new york stock exchange, stocks are on track for a fourth consecutive decline. a better day for central bank rate hikes.

we got hikes from turkey and switzerland, as well. morgan stanley, adam jones, he does lift his target to 250. central banks remain in focus. power on capitol hill after comments yesterday and the bank of england hiking rates this day by 50 basis points. dr horton trading. >> no. i am not saying. >> ignore everything i just said but we will bring you right up to date with everything going on with those homebuilders. let's get to tesla. morgan stanley downgrading the stocks and saying we see tesla as an ar beneficiary and an auto company. high expectations has brought the stock to a fair evaluation. 4:50, there 90 gives him some leeway. >> i thought the most line was

tesla is a must own. if it is a milestone, why must you downgrade? >> i don't know. that's it. that's all i got for you. i've got nothing for you. i feel like sometimes you should say, own it don't trade it but you will also say things that indicate, you want to own it right here. >> don't personalize it. if you own it, don't sell it. so why are you asking me the question? you knew the answer. jonas has become the most colorful analyst of this year and he makes calls that are so

candid. how about this line: i have to be upfront with you all. i did not see this 111%. i think it is a self-effacing nature. where he actually says, i screwed up, i did not know. he is just legendary for being honest. what about the other guy? how about all of the other guys and they have never ever said i have to be upfront with you. maybe this is just one gigantic psychiatric session where he comes in. >> it also comes the day after barclays exact same thing cuts the wage, going from 260, basically, five bucks or 10 bucks. >> the focus is being 450 and the barricades being 90. i would've chose 1000. the bear case being zero.

>> how do you even address the bookcase? >> i don't know. is there any real value? >> no offense, adam, but is there any real value? >> yes, to remind us that the bear has started. the show, the bear. it did drop. >> it is certainly not the reality of it. it is not going to 90, carl. >> just recently, he has written about what happens to tesla's economics if it becomes the gas station for ev's? the morgan stanley road yesterday that that sensitivity suggests that could be worth up to $78 a share, alone. >> if you look at just associated with tesla, absolutely. the only company that is not going to get an addition is the meta-platforms because of this death match, between mark

zuckerberg and -- i don't know if you follow -- >> i know all about it. >> tell me about it. >> mark zuckerberg is doing jujitsu and has challenged a physical altercation and says he has the moves, it is called the walrus. he does this on somebody and doesn't let them get up. [ laughter ] >> this ultra billionaires talking about what they really care about. the two of the richest men in the world. by the way, that would be a pair for you that we would all eat up. >> i would actually like to be the announcer. >> would you? >> down goes frazier! down goes frazier! no, i think this is a very rare moment where we are being a little sarcastic but i will say that, short-term, the moment cnbc did the magnificent seven,

that was the top. steve mcqueen was a great man. i followed him, i covered him as a homicide reporter. >> why did you cover him as a homicide reporter? >> he had cancer. he was giving money away, privately, to people fighting cancer who are underprivileged. it was a great man and all he asked is that i not mention his name and this is the first time i have revealed that. this is the first time i have revealed that, my correspondence with steve mcqueen. >> that is pretty cool. is there one stop you would like to see steve mcqueen over others? >> nvidia! of course! >> so we start calling steve mcqueen nvidia. stevens, board members, 08, $51

million in sales. >> congratulations, mr. stevens. >> will blame them at all. >> the moment of magnificent seven, he put the file on. >> i want to get back to this death match between and mark zuckerberg. that should be on espn for sure. elon musk is a much bigger man. the exercises limited to throwing his kids in the air. >> he is a much larger man in every way. >> but mark is probably quicker. >> and he is a little younger, too. >> do you think mark actresses in the meta-verse? >> i am sure he does. >> we've got a lot of film.

talking about mcqueen, steve mcqueen is a great man. people don't know that. >> i know and we have got some video of that. he used to drive fast cars and i think we have new video. >> i would like to see it because it was so easy for me. oh. [ laughter ] >> i never get tired of watching your face look at that. >> that is not really me. that is his doll. >> what are you guys talking about at this point? >> he is saying to me, you know that we have got to warm the wheels? oh, yeah, absolutely. and he goes serpentine. and i go, serpentine? serpentine? and these were crucial moments because i had them up. >> what was the car, by the way? >> a mustang. i was very calm when i was

begging him to stop. you must stop. he would not stop. and he goes, did you see how they wax the runway? and that he takes it and he says, i'm just going to do a couple of spin-outs. and he goes, do you want to do a spin out? >> i could watch that every single day. >> my life passed before me. i'm thinking, who can she get to substitute because my life was passing before me. don't they now have a monopoly on the charging situation? and won't that be very valuable to them? >> remember, the ira did provide a lot of micro-charging. incentivized, one standard. a nonunion standard. but i find this fascinating

because it is a match from us but it is a bit of a trojan horse. remember, he did call the pickup truck, the lamborghini. i went to see my wife. she says, don't go over 160. and she goes, what is that like? no, that is miles per hour. so when you go there, those were the fighting words that barley had, that is not how many f150's. >> the possibility that one day tesla becomes a battery supplier. today, a $9 billion loan from bde. >> they could face a strike. that is the one thing.

but that is a great deal by ford. i was talking to someone last night, they are putting up factories and creating a huge number of jobs. unfortunately, we don't have any people that can take them. famously, if you know any welders, give me a call. >> welding has been an issue for some time. unfortunately, we don't have an immigration policy that will sort of help deal with that shortage of labor but congratulations to jim farley. although you said is potentially a trojan horse. is it or not? >> kind of. if you are selling trucks to business people, the biggest peers are going to run out if electricity so what this does is spurs huge numbers of sales. a lot of people buy these new cars were not ford people.

i have a maverick and my daughter has a bronco. >> i am thinking of just sporting that cyber truck all over town. >> the lamborghini, i was there when they made 5 1/2. >> maybe after zuckerberg, he can have farley in the ring after that. that gives him the walrus. >> do you know the fonz five seamstresses actually limited. >> there is no robotic arm. >> so i have a tick tack. i felt great. >> that is a block of news we

just did but colorful. we are here to entertain, right? >> some days are more entertaining than educating. we are going to hit the homebuilders. lower despite an earnings. take a look at that, almost a double in the year. we will get to some calls including paramount and some news on darden, as well. take a look at the futures.

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buyers who are adjusting to the higher mortgage rates and the continuation of a more stable rate environment is a positive factor. in addition, with the lack of resale inventory that i mentioned and market price is now starting to increase, buyers are demonstrating a higher sense of urgency then we saw earlier this year. as we discussed on hour first quarter call, we had begun to see a sequential improvement in demand in february which continued throughout hour second quarter. >> that is the earnings call last night talking about housing demands where the number of homes for sale in this country continues to fall. >> it is devastating. honestly. the fed now raises mortgage rates which is amazing. this call is basically about

how we are going flat out in housing in this country. particularly in california. it is almost as if rates don't matter and i started thinking, the unbelievable cfo we have, so good that when you listen to this, you just think, maybe i have to raise rates where you have to accept the fact it will affect mortgages but maybe you can affect the ability for people to even get mortgages. we are not slowing down housing rates. >> that is kind of the mood right now in the uk. >> the governor said we know this is hard but if we don't act now, it will be worse later. >> every homebuilder realizes this is a tremendous opportunity. the bad thing is, these are

very good at making. the price of making houses come down, almost $20,000, the problem is that you have brought these areas where you cannot put up as many as you like. they also don't want to plug the market because they are making so much money. it is not like you can call and say would you please put up another 1000 homes. they just cannot build them fast enough and at the same time, they are sensitive. they are walking a fine line. if you are powell, you can say, what if we done? >> no, i am just wondering on the mortgage front. we are looking at things particularly regional or small community banks. perhaps not being willing.

>> the regionals are all worried, the small things are all worried but remember, there is a huge percentage of homes being bought without mortgages and there is just no inventory. they've got to solve the problem which is how do we get people and some people say they have a to to do this. how do you give up a 4% mortgage and buy new house? it is very hard to do. when you are paying less than four on your mortgage and we still have not seen the big renovation numbers i would have expected where people are stuck in their homes. i think that has to happen because they are stuck. if housing is the essential issue, you look at all of the stimulus and it is really starting to hum. it is going to be like i-95 on steroids. >> the infrastructure, factory production, i was just looking at the percentage of mortgage holders who do have a rate below four.

>> their inner are so few people. it is not worth it to make the move. even if you are doing that thing you talked about where you spend six months and a day, i had lunch yesterday and met somebody else. the people in the financial services industry, both of them moved to florida in the last couple of years. they enjoy living in florida. for five or six months. you will never catch clark in florida. >> although i was raised in miami for several years. >> new york city, new york state? >> the governor.

it is going to be underwater. >> can't get flood insurance, that is for sure. >> tallahassee. when we come back, we will get the countdown to the opening bell. a pretty interesting session. don't go anywhere. do you ever worry we'll live forever? no, it's literally never crossed my mind. what if we live to like 100? that's 35 years of being retired. i don't want to outlive our money. and i have been eating all these stupid chia seeds! i could totally live to be 100! why do i keep taking such good care of my-

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30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ let's get to a mad dash. anheuser-busch, the stock has been taking it a bit. we talked a great deal about bud light. boycotts, it has had a real

impact, obviously not the number 1 fear in the united states, any longer. >> they recommended stock but listen to this, permanent reduction in the business but there is still time to buy. a permanent reduction is rather extraordinary. >> in other words, bud light isn't coming back? >> olson has done a great job with miller. stock does not act well. >> think the courts -- >> consolation to one of the largest beer companies on earth, they were not consider

that much of a -- >> no! they were more like wine. >>:terrific new york wine, everybody. that is the champagne capitol of the world. anyway, consolation i like more but i think it is really interesting that they say it is not going to. >> they are saying it is washed out, right? culture wars take it home. whether it is target, video stock prices, certainly, it has been an issue. >> stock prices. >> but not because of anything having to do with florida. >> the movies aren't that good. that last movie was not.

>> you want to get your movie reviews from this guy right here. >> we have 4 1/2 minutes before the opening bell, oming right up.

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at the end of the day, rising rates, he did his job. i do think we have to wait. the banking situation is more fragile. the regional bank which services the communities, if you want to open a burger king or a laundromat or a little restaurant, you are not going to j.p. morgan. >> as i mentioned last time, we own a lot of treasury. we are waiting for the fallout. >> on the squawk earlier today, doesn't feel real. >> i am not against things like this, a couple of more rate hikes, i do worry.

>> we talk about it or we don't or redo, it is still an issue. >> do you think tanks would be merged out of existence? >> i don't know. it is kind of future lending or the significant capitol taken by these banks. >> i do think we have talked about it enough to allow the bank's reserve. take a look at wells fargo. >> they have said over and over again, do you think that we don't know about this stuff? fully reserved but i am worried about the fact that it is going to be so tough for powell to raise rates. against a couple of trillion dollars that is coming. >> that is why yesterday he said, we knew early on that

speed would be important. it is amazing he can raise 500 basis points and not have a congress put a glove on you when you go in to testify. >> someone has to stand up and say we are spending a lot of money. it is on you, you committed to spending $4 trillion. i didn't commit to spending $4 trillion. >> the treasury which should be varied from the break. in the interest cost for the overall budget continues to go up sizable he. 5% rate as opposed to zero. >> you remember in the 70s, people would say, it is our grandchildren who have to pay. what am i hearing now?

>> we can't. what are we going to do? >> their debt is worthless as far as i am concerned. and by the way, we rely on them to buy our debt. >> you have heard it all before. >> people want our favor because our country in the end is a democracy that may have two raise axes but it is a grow country. we just need more people. >> one day, you have to devalue the dollar. >> the motive today, you will be at the white house, a lot of trade agreements, meeting with ceos, cisco, microsoft, google. one of the things is going to be making it easier to at least renew your visa. >> and that is a pretty hot topic.

i just think that when we come back over and over again, it comes back to no immigration policy and almost the birthrate in the country now getting europe. we are short people. >> we have always relied on immigration. >> legislation coming on immigration laws, less than zero, negative. >> i think when you sit back, too much stimulus, not enough people, not enough welders, too many white-collar people, the wrong match and two thirds of our country makes less than 50,000 and they have to go to dollar tree which is a shame.

it is a perfect storm of not what you wanted for your pal but somebody has to answer for it. if got up there and said today, do you know what, guys, i have about had it with you. you are the ones who came forward in stimulus. i was like, it is not just on me. it is on you. but then, he is so not controversial, he is a good guy but it is not his fault! let's stop it. he didn't say, we need to have a city that doesn't need the money to start doing things. >> some consumer names are well. credit card data is pretty strong looking for a strong summer but some of these industrials, >> it is absolutely true, if you look at where we are sending our classics in china,

prices are up. so the commodity business is down. deals are okay, not awful. >> some of these chemical companies are warning one after the other. >> business is not great but i do think in the end, we don't trade those. i will say, it is the beginning of the day, the advanced microsoft is down as it has been and this is one of those days when they are soaking up the magnificent seven and then they come right back to help, like the movie. robert vaughn, clover. yes.

>> so you are of the belief that laggard can play? jc morgan says consumers -- >> i think costco and walmart are both fabulous. macy's? i don't know. tractor supply? i am down for tractor supply. >> these are old favorites. >> not everyone is in video. a terrific guy, a great investor the last time they spoke. not everything can be in video, i admit that. >> it is like being in a race car with jim farley.

throwing some water down and then doing the spin-outs. >> remember, they came out in mid-may. however, industry and expertise. theology coming out with a strategic update and new allegations framework, you can see it as having a positive impact. and rg saying, we have greater capitol return. that acquisition completed. we now see the leveraging, returning 80% and investing 20% and growth initiative. 6.9 billion. share repurchase dividends for 2027. frankly, it is hard to tell if it is the story or maybe the capitol return allocations program.

>> like a movie where they thought they solved it. >> guys, a big day today out in california. we get to that. today's favor report. we have been following this report for a very long time. the acquisition of activists microsoft. they began hearing in san francisco. it is an important hearing, trial, whatever you want to call it. the government is seeking an injunction to stop the deal. the opportunity to extend until next friday.

saying we can wrap this thing up by thursday and the expectation is that she will offer a ruling on whether the fcc gets the junction before the merger agreement expires as of now on july 18th. here are some of the arguments being made along with documents that i have had the opportunity to peru's. >> you are right at the forefront of it. >> you have fat written as fat . >> that said, they talk about sony which has continually been the chief objector. there are some people who will be witnesses. and there is a gaming ceo. in this finding fax,

a lot more exclusive games on this platform than we ever have, the back-and-forth will continue. a very important trial for the ftc. should it move, the question would be, will they continue to bring actions like this? >> the one that she wrote that she is now going into amazon with? >> any number of different things. important to the fec. should they prevail, there is the possibility that microsoft might choose a round of objections with cma. it seems unlikely.

as we have said many times, the ftc is important but the hurdle right now remains as well, the uk authority which has already said no, that is under appeal and that appeal will take place at some point later this summer after the merger. but if they were to prevail here, something that is worth at least time spent. microsoft would actually communicate at all which they have not. >> why do we not care if the u.s. should be the leader in gaming? >> the leader in consuls. don't we want to be the leader in consuls? >> our dash cam security threat? >> we are not the leader in

sammy's? >> that is an issue because they are in taiwan. >> no one ever ays it is really good to be, america is going to be the leader in consuls. i went by gamestop the other day. >> was it lonely? >> i got the chills. >> you are in a mall. it was kind of like the colorado room and the shining. or how about the california room? >> that is scary. >> one dynamic coming out of the depot corner, they are actually adding some stores. and we think we are over stored but there are plenty of retailers that are building out. >> they have historically been very chary. that shows read optimism about the repair renovation. we have not seen the big money for that but that is what they are doing. very smart guys. >> as for amazon, that lawsuit

is on the front papers, this morning. the loop goes to 180. 70% saw earnings, that year. >> i have a memo to corporate executives, when you have a secret project, don't name it operation perot like google or operation iliac, that was bad. odyssey would have been worse. how to get off of amazon prime. they use that term, they found that memo. >> it is sort of a debate. lots of businesses make it any kind of a subscription membership. >> i started and it was not like, let's make it so there's a boatload, you got to find somebody. and there is no phone number to cancel. that is the web. what you are in, you are in.

you've got to call zuckerberg. >> is entering a cage match? >> this is the master blaster. >> can you imagine him in a mustang? a dark horse mustang riding with farley and what that would be like? >> i would start training. ragdoll jim. >> wait a minute, do we put up another charge? >> no, obviously not. >> i was talking about, they got all of that money at a very low rate.

>> that was during the wheel. >> there it is. >> i said, why are we on water? >> that was it. yeah, i was at the dinner table. it is really kind of while. >> on a couple of inflationary stories, some outright inflation and some menu items. >> and as chairman, i love him so much. i still think that people are going to come back to it because it is incredibly well

run. that group has not been bad. >> the big guys are up. amazon is up and apple, $3 trillion. the 3 trillion market cap. >> it has a snapback but i am not saying, earlier, david said, and jonah says, i love it. he is completely sister, mother, sister, mother. >> this is chinatown. >> i love chinatown. >> that was walter. >> he was a dunaway.

>> no, in the movie. >> the movie was made in 1973. >> it is a great rule. >> we put our viewers back. we've got to come up with something a little more current. okay, there. >> i am not. >> i am ruining our whole demo. >> what else is on that list? >> the wild bunch. >> let's watch some sturgis. are we done with the movie? >> it is okay. it is like taking a ride in a dark horse mustang. >> stop.

>> a little bit of weakness. we are holding. a quick reminder, you can always get in on the scene. find out more at cnbc.com or report your phone to the qr code on your screen. we will have a little more to chew on regarding the fed. we've got waller, already. 10 a.m, along with existing homes. back in just a minute. fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out of my torso! one for you, one for you. oh, you're a messy one. cool, right? so cool. anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. hot dogs! fresh, warm hot dogs!

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get you a live shot of capitol hill here as the fed chair gets set to testify once again. this time before senate banking. a lot of the discussion yesterday was about how comfortable he looked yesterday. >> it was incredible i just wish that someone would talk about what the real inflation problem is how are we going to find the workers for all that money that's coming in >> right. >> these cities are sitting on a gold mine and they don't know what to do. >> we'll talk about it a busy day for central banks we mentioned norway and brazil,

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did you ever stress about us having three kids? no, that was always part of the plan. three kids?! this was never part of the plan! these kids order the lobster mac 'n cheese! what if she wants to play golf? we're going to have to outlaw golf. absolutely no golf in this house! not under my roof! since we started working with empower, all of our financial questions have been answered, so we don't have to worry. so you never- nope. always part of the plan. join 17 million people and take control of your financial future to empower what's next. start today at empower.com we moved out of the city so our little sophie financial future to empower what's next. could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes)

(chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch. it's time for jim and stop trading. >> we talk about the love for nvidia but in pharma world the

love for eli lilly continues jefferies has a piece saying the dice therapeutics buy was terrific lily and their weight loss diabetes and their alzheimer's the love continues it is everybody's favorite big pharma and it's remarkable what you get with other pharma companies, the ceo is doing an amazing job. >> larger than j&j in market value. that would make it the largest >> isn't that incredible. >> j&j, aaa. doing the split. >> the ozempic effect? >> yes. >> the american brain foundation, don't ask why, and what's really interesting is that a lot of people do believe that there is going to be real -- real all time zer's hope and that you will have to take an mri, you'll so where there's

plaque in your 50s. >> roll it back? >> it's an important drug. j&j, obviously - >> that's a moment. >> yeah >> how about tonight >> we'll run a special tomorrow, i got to tell you, i want to reiterate we make jokes about the ride but jim farley, he is doing things in america, i don't want to -- i know nvidia is popular. i don't want to minimize what he's doing for america on the other side watch fedex. i don't want to minimize how bad the labor relations are at ups. >> oh, my gosh the writers, the spirit, ups, it's everywhere. >> it's back. >> don't forget july 14th is the date when for collective bargaining, middle of september the contract runs out. that could be very bad because at companies that make a lot of money is not reflected in the stock. >> the robots are not going on

strike there are plenty of people working in those - >> they all seem happy will they be happy if he loses to zuckerberg? >> it's a beautiful facility. >> i did a test drive with jim farley. >> weighing in at 6'3", 220 pounds, $170 billion, elon musk. >> they could not -- oh. >> in this corner. weighing in -- i'm getting ready. >> still ahead, we'll get breaking economic data at the top of the hour with existing and lei and julie sweet on the company's quarter as the initial dip did get bought the dow is down 20 this is ge aerospace, advancing flight for future generations. ♪ welcome to a new era of flight. this is cynthia suarez, cfo of go-go foodco., an online food delivery service. business was steady, until... gogo-foodco. go check it out.

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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 day two of fed chair, jay powell, on the hill. today testifying in front of the senate banking committee we'll take you to q&a later this hour weakness again today, nothing as extreme today. down 20 points on the dow. the s&p slipped into positive territory. the nasdaq out performance, tech

leads up about a quarter of 1% we're 30 minutes into the trading session. nrg energy, the biggest gainer on the s&p the company announcing plans to boost its stock buyback program and also deleverage its balance sheet and cut costs amid pressure from activist investor elliott management stock up 3%. shares of nvidia under pressure as the company gets ready to meet shareholders at its annual meeting later today. the stock is up 190% this year going into the meeting accenture is falling, one of the biggest losing, the company beating earnings estimates but the outlook disappointing the street and julie sweet will be joining us in a few moments this hour to discuss what they're seeing on i.t. budget side of things. s&p going positive just briefly a moment ago let's get to rick santelli good morning, rick. >> big data. may leading economic indicators, they have been negative for 13 consecutive months

now let's make it 14 minus 0.7% that is the 14th consecutive negative month over month change and if you go back 15 months, it was 0, so technically, we have gone 15 months without a positive number. and that's not even near the record 24 consecutive months from april of 07 to march of '09, interest rate bottom. we saw initial claims but they've moved higher as the senate banking committee convenience with chairman powell in front and we have existing home sales for the month of may as well and for that, we head east to diana he olick. >> existing home sales in may were basically flat, up 0.2% from april to a seasonally adjusted annualized rate of 4.3 million units, slightly better than the street was expecting, sales down 20% from may of last year supply still the problem

just 1.08 million for sale the current sales pace, that's a three-month supply six months is considered balanced between buyer and seller and just to note, there were twice as many homes for sale at this time prepandemic. now the median price of a home sold in may was $396,100, down 3.1% from may of last year prices rose in the northeast and midwest and this is a median price. it also reflects the price point where most homes are selling which right now is at the lower end of the market. other repeat sales indices show prices are rising again. these may sales are based on closings, homes that went under contract in march and april. mortgage rates were choppy during that period the average on the 30-year fixed started over 7% and then dropped but briefly to start april before heading higher yet again. so just flat that's all i have to say. >> yeah. diana, thank you very much with the home builders trading near record highs. it was a pretty eventful

night, day, in terms of central banking news we have fed chair powell on the hill again, second day in a row, and a surprise from bank of england. inflation coming in hot yesterday and the odds rising for a 50, they were only 40% but bank of england does something and surprised and went 50 basis points a double rate increase out of the uk as a surprise, signal there's more to come there was a double in norway as well i'm sure you are following, david. >> of course i follow the norwegian central bank very closely as you know. >> and the swiss national bank went 25 basis points up. the bottom line is, first of all, the fed pause wasn't contagious people didn't -- other central banks didn't follow. there's still a global inflation problem. and different economies are feeling it in different ways but central banks for now completely moving asynchronously in different directions and it's making for interesting fodder about who is right and what it's

going to mean for the global economy. fed is pausing and signaling more to come bank of japan is easing. it's all interesting. >> we're still paused. philippines paused indonesia paused a bunch of banks moving at different rates. it was interesting, last night, jpmorgan off the uk inflation print said they would go 50, but probably won't because we have got nonsignal on that and yet they did any way. >> they don't care about the signal unlike the fed which is about the signals. what we got yesterday was you asked me at this time yesterday will we hear different we didn't hear anything different. >> no. >> it was very much a we still think we have a long way to go to get to 2% inflation, groundwork with hikes, with fed members saying we need to get there. not committal and won't use the word pause or skip he kind of sets it up as we're slowing down in what we've done. he used -- he equated it to how fast they were going 75 miles per hour, 50 miles per

hour we're taking it down a notch to calibrate -- >> is it as important or not even perhaps more important, where we end on the terminal rate and how long we stay there? >> how long we stay there is the key. i think some comments that were kind of overlooked but got attention from raphael bostic yesterday where he said he's comfortable here, but then said something important. he said, i don't see us cutting in 2024. >> right. >> i don't see us cutting into 2024 that is a signal that higher for longer, restrictive for longer and the market you could see is in the intraday moves, a tick lower on that front. it is about how long we stay at these very high levels you know, i knew you were talking about this with jim, something we don't talk about enough as it relates to why the economy is not getting hurt more by 500 basis points of tightening you would think sink us into recession, there's a lot of fiscal stimulus, not just, you know, putting money in

people's pockets during covid, it's the inflation reduction act, it's the american rescue recovery act, which grants a lot of states and municipalities and localities money and you have these two things, as well as the infrastructure act if you just google, just do a google - >> the chips act something as well there's a lot of money thrown there. >> a lot is necessary, but a lot is creating a ton of demand for these projects that's happening. i did a quick google search this morning about arpa, ohio, the western reserve port authority approved accepting 400,000 in american rescue plan act from the city of youngstown this is today. every day there is something the mayor of wheeling, west virginia, just said, it was almost like getting one-year full of city budget just to make improvements on projects they're being flush with cash and it's helping the job market as well. >> yeah. >> one economy we didn't mention when we talked about all those that are still raising rates is

china, it's different and the world's second largest economy. >> they're easing. >> they're having a harder time of things. >> what's interesting is they're easing and usually the market likes when central banks ease, but there's some -- the sentiment has been sour. >> negative. a lot of concern we've mentioned the youth unemployment statistics which are somewhat staggering over time. >> the one good thing, well, yeah, there are theories about is china going to export deflation. is the u.s. going to export inflation. not seeing a lot of that, but there is concern that china is not going far enough on stimulus will they have the resolve to do more, bigger cuts, more stimulus money going into the economy and they've got still a real estate problem, a debt problem they have to be careful with this line of policy easing, but also making some of the debt problems a little bit worse. it's why i'm very excited to have this policy panel next week with all the top global central bankers marching in different directions trying to interpret the different signals and

differences ways. >> this is going to be big, almost as big as zuckerberg's cage match. >> they are in disagreement about what to do right now which makes it a more interesting setup for the discussion of powell, laggard, bailey and we haven't heard much from the new bank of japan -- >> agreed. >> i thought they reached their end point long ago what did i know? >> yen gets weaker by the minute. >> modi's appearance at the white house about now is one more signal speaking about china and how the supply chains are migrating. to steve liesman with more on the fed. good morning, steve. >> reporter: guys, before we talk about powell just a couple new fed comments here from federal reserve governor bowman. she says additional rate increases are necessary to bring inflation down to target and we need sdrooesz achieve, quote --

increases to achieve a restrictive stance on monetary policy and talks about a meaningful and durable decline in s inflation. remains far too high core inflation has plateaued since fall of 2022 that goes with hawkish comments from waller overnight and really goes along with basically developed nation central banks ex-japan all en route to hiking different paces of hike, but the direction of policy around the world essentially is for tighter policy none of the banks, especially those banks that have just inflation andates, are happy with where they're at and they could be going higher and we saw with the bank of england, higher at a faster pace we talked about the boe raising possibly 50. >> yeah. we did did you get anything out of the powell comments that made you think differently about what they're going to do? >> yes, most certainly

so we knew that he was going to back where the committee was, but i think it was interesting that he seemed to personally be where the committee is i say that by virtue of the fact that he talked about future rate hikes at the beginning of his speech, but later on when he was asked about the two rate hikes, he said, i think that's a pretty good guess for where policy is going. so that seemed to me to put himself where those are. what you see here, we've got this fed rate hike probability, interesting dynamic here, you have the market really on board with the first hike, but not much on the second hike or at all voeither in september or the november meeting and nowhere in fact, by may of next week, guys, i don't know if you're surprised to he know this, the market has a better than 60% chance of a rate cut by then what bostic said notwithstanding. bostic and goolsbee yesterday were kind of interesting to me in that both of those guys ended up being pretty dovish in terms

of additional hikes, while bostic talked about no cuts, he didn't seem on board with additional hikes the thing to think about here, two-thirds of the committee has two hikes built in and i think all that's happening here, the only difference between boe, ecb and the fed is the pace of hiking and the reason is because we're far ahead of those two other central banks, and we have a lower inflation rate. >> makes sense thank you very much. steve liesman. we're going to hear more from chair powell along, of course, with ecb president christine lagarde and others next week just to reiterate, the ecb forum on central banking like the jackson hole of ecb in portugal, wednesday, during this time one sector in focus for regulator and the fed has been real estate and financials just want to mention a note this morning, morgan stanley, betsy gracic, lowering estimates due to its exposure to real estate

and some of the comments, the ceo made on this show, very recently she takes down full-year earnings by 10% and she takes down q2 earnings, big slice to the numbers there, after soloman made comments on real estate if we have that sound. remember this. >> real estate affects us and we have headwinds from this in three areas. first, we do have some blending and you'll see impairments in the lending that would roll through our wholesale provision and you will see that this quarter. last quarter for the real estate we consolidate, we showed close to $400 million of impairments and we're going to see more impairments again this quarter. lastly, as i said, we have some equity investment in real estate as a port of our portfolio on balance sheet and think we and others are marking down those investments given the environment this quarter and in the coming quarters and some of

that will play through in the market, all in the context of the size of goldman sachs, you know, is manageable, but it's definitely a headwind at the moment. >> turns out pretty specific guidance there the q2 numbers from 577 to 295 from betsy on that along with some others. she also mentioned the equity investment and goodwill impairments following the expiration - >> i wonder, goldman is in a position to take the markdowns and write downs to the extent it needs to i wonder whether we will hear more commentary about that commercial real estate which we talked about a lot, low occupancy rates of many buildings, when, in fact, they need to refinance, will they be able to, can't get new tenants, unable to make your debt payments potentially banks in many cases i don't think are interested in taking the keys back as much as renegotiating with the landlord or borrower. that said you're going to have to take a mark and you wonder whether this will set off alarm bells again when it comes to

asset quality and the likes of which we saw, of course, during the mini bank crisis that occurred in march. >> because for goldman it's not a huge part of their loan books but for others it's sizable. >> it's bigger again, this will take place over years, not like it's going to hit on one day, but it's something that certainly you have to keep aware of. >> we're doing a bank preview. several weeks. >> we're ahead of ourselves in terms of earnings season a couple conversations about this recently and the way they go is, why have people moved on already from the commercial real estate as a concern or the banking -- >> it's a rolling issue. >> the banking crisis. that's what i've answered. you can have your moments. >> yeah. we know the fed is watching it closely as well. as we these break, our road map for you for the rest of the hour, "squawk on the street" heads to the hill for day two of powell testimony we'll take you live to q&a as soon as it happens. >> we'll talk about the markets and rates. we're going to have the former

asset management chairman jim o'neill join us. >> accenture's jeulie sweet wil break down what she calls an initial market. the dow is now up 50 no artificials. or these toys that get my mind right. ♪ or maybe it's petco, keeping me healthy for less money. wait, what's money? better quality pet care for less human money. [tweet] oh, a bird. it's what we'd want if we were pets. get $10 off $50 at petco, the health and wellness company.

take you to the white house this morning where the president is welcoming indian prime minister narendra modi today you will hear about india, meetings with a high-profile ceos, state dinner and press

conference actually, which is interesting, because modi has, according to reuters, not addressed a single press conference in india since becoming prime minister nine years ago. i think there will be limited questions but it will be interesting to get him in front of reporters. big story for big business and investors have looked to india as an alternative to china. we'll let you know if there are headlines there. accenture, global tech and consulting firm beat estimates but shares are dipping this morning. new bookings missed and the revenue outlook. joining us at post nine is accenture chair and ceo julie sweet. welcome back good to see you. >> thanks, sara. great to be back. >> the bookings miss is getting some focus this morning, even though the overall numbers beat. is that a reflection of weaker demand >> there's a lot to be excited about this quarter in bookings we had 26 clients with bookings over $100 million. what you saw on the bookings

side was the smaller deals, so clients are prioritizing big transformation deals, which is our strength, and a little more cautious, so existing projects being extended but some of the smaller deals not starting we saw that go into europe and growth markets so it was lower than expected. so much going on in terms of gen a.i., building of the digital core, so a lot to be excited generally in this sector. >> that's the whole question now is typically during downturns, i.t. spending, gets pulled back, but now we're bumping up against this a.i. cycle. so how much is that offsetting what would normally be a weaker period. >> your first clue is we announced last week $3 billion in investment, right, which is a sign of the opportunity that we see, and, in fact, the interest in gen a.i. has focused clients even more on what we've been saying for a couple years, all strategies lead to technology,

cannot use a.i. unless you have data we just did a survey that 97% of executives think gen a.i. will transform their industry and company, but over half said data is the big challenge so we see a huge opportunity in continuing to transform the digital core and move people to the cloud, get their data accessible, and we've also seen opportunity in gen a.i. itself we have done 100 projects that we've sold in the last four months, which is about $100 million in sales it's small the bigger opportunity in the near term is going to be getting companies ready. >> what do you do? what are your services in that chain of helping companies get more efficient with a.i. >> sure. so the first thing we do is the business case. one of the big things is gen a.i. is more expensive it's going to come down over time, but where do you use a.i., what's the return on it. how do you pick the architecture then really importantly, it's only technology. it doesn't have an impact until you change the processes

so, for example, we're working with an insurance company, if you have a car accident, you need to call in, they're using gen a.i. in their internal operations to get information faster to the customer that increases customer service. but that requires both the technology and a totally different way of responding to customers. >> but, you know, cost is still sort of an unknown, isn't it, to a certain extent for many businesses, as are use cases i guess they're connected to some extent. how long until you have a clearer sense to what is going to be used, what it's going to cost and how it will further these businesses >> >> david, this is moving fast you have great companies investing billions of dollars, so i think that will become clearer. it's more like weeks and months, not years. we see that gen a.i. will go faster than the cloud, so it's kind of at the same place the cloud was a decade ago, but we believe that the embracing of

really all forms of a.i. will go much faster. the biggest challenge, most companies can aren't ready to use a.i. they have to continue the move to the cloud they need to put in the cloud-based platforms and change new ways of working. talent, big opportunity for accenture because our clients really need help in rewiring and upscaling their people. >> you're talking about doubling your own data and a.i. workforce i think. 40,000 to 80,000, part of the $3 billion. you're cutting jobs and replacing them with automation, right? 13,000 jobs this quarter >> year to date in operations, we automated 13,000 jobs and re-skilled those people to do other jobs. >> i see. >> that's what's amazing about accenture, right if you think about a.i., it's not like there's a lot of experts in gen a.i. out there. we're upscaling our people to do more in gen a.i. to create the ways to tune the models.

lots of opportunities for new kinds of jobs, and that's the strength of accenture. we spend over a billion dollars a year in re-skilling and upskilling our people. >> do you think gen a.i. will replace those jobs entirely? or do you think there will be more jobs created? >> i think it's going to be like we've always been. like i gave that example today of 13,000 jobs every single year, we have to provide more productivity by automating we've been doing that for years. then upskilling. we see that's the opportunity more broadly and we'll focus on helping our clients pskill as well new opportunity for us. >> 720,000 people working for you, so that was one of my questions about whether your own business can be more he efficient with replacing jobs? >> we're super excited about using gen a.i. in our own business in the same way we've been using a.i if you think about technology, our technology services, we already have automated using

a.i. things like tickets, ticket routing, automated testing, and the issue is that at some point, it comes to an end you always need some new technology to continue that. so particularly on the manage services side of our business, this is another way to keep going and being competitive. we think this is an opportunity for us to differentiate in the market by being the leader and using gen a.i. faster. when our clients can go faster at less cost because we're able to do it in a compressed way, compressed transformation, that really helps us differentiate in the market. >> i finally have to ask you quickly about consulting because i know it was a point that analyst investors have been watching and slowing growth, will it turn negative in the coming quarters or is there enough demand? >> consulting did turn negative slightly and it's a tale of two worlds smaller deals, those are not doing well. anything about transformation, that's where we're doing well. so that's going to take a little

while to shake out, but what's really important, is the opportunity to transform is as strong as ever. >> julie, thank you. some disappointment with the numbers but the stock had a great run in earnings. >> thanks. as we go to break we'll look at big gainers on the s&p as the index goes positive. palo alto, just about 30 cents or so from a fresh all-time high followed by amazon as loop ups its target to 180. "squawk on the street" is back after this this thing, it's making me get an ice bath again.

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just about an hour into the trading day. dow has gone positive as has the s&p. to bob pisani with more on what's moving. >> 4 to 1 declining to advancing stocks at the open still higher interest rates seem to be putting pressure on sectors of the market. take a look. defensive in nature here health care, consumer staples doing better, but interest rate sensitive sectors, banks, for example, reits have been under pressure all week, real estate investment trust energy, some of the more cyclical sectors have been under pressure throughout the week take a look at the dow leaders

you can see health care, you can see tech, consumer staples names like coca-cola on the upside that's good we're getting more defensive names like health care and consumer staples moving. still look at the laggards again, the cyclical groups, material stocks, industrials, energy, banks, a downgrade today but they've been weak, these sectors, all throughout the week you have the accenture ceo on, this is very interesting because they had earnings, the earnings beat, as did darden which had a very good number and generally very good commentary, but you see both are trading to the downside very interesting, we had early earnings reporters, nine of them so far, including accenture and darden, all nine have beat their earnings system, and yet, the revisions are downward for most of them. six revised, analysts are revising numbers downward, only three are higher that's interesting after an earnings beat and i think there

is some concern that the higher interest rate scenario that we've been potentially seeing may start to be affecting stocks overall. keep an eye on that for sure meantime we were talking about some green chutes in light of the kava successful ipo. we had announcements this week of three big ipos coming next week, these are large. this is a good sign. fidelis going public close to it $300 million kodak gas service, and then savers value village, the largest for profit thrift operator in the united states. very interesting company about 300. put this together, almost $900 million in ipos coming next. the highest number, the highest amount raised in a long, long time practically a year and a half. so not the big numbers that are out there or not the big

unicorns that we're waiting for, the reddits of the world yet, they haven't announced, but smaller niche companies are coming in. that's certainly a good sign cava remember priced at 22, opened at 42, has been holding steady at $38. the people who bought it initially on the first day are still under water. the people who got the initial allocations are very much above water. the ipo etf remember hit nine month high just last week. it's been down so far this week. again, i think that's reflecting some modest interest rate pressure on the stock market one of the reasons i think the s&p is down a bit this week. sara, back to you. >> all right we know you'll watch it closely. thank you. bob pisani. after the break, powell takes questions before the senate banking committee this morning. we're going to take you live inside the room, next. back in just a moment with the dow joining the s&p and nasdaq in positive territory. we'll be right back. old school hard work meets bold new thinking. ♪♪

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q&a under way with the fed

chair. in this case senator menendez. let's listen in. >> these are real questions, and the thing with lags is, this day and age, financial conditions react before we act. so the markets are already pricing in rate hikes. that's quicker, but the effect of those financial conditions on the economy still takes time it works very quickly on housing, for example, but less so on the service sector which is not very interest sensitive i don't think that that has changed. others have a different view and different directions they think it's changed there's also -- there's not, you know, a consensus agreement on how long monetary policy takes to affect the economy. some people think a very long time, some people think right away i tend to think let's look at the middle of that a year and change, that's not a bad way to look at it. policy actually started tightening well before that, before we didn't raise rates until march, but policy had

tightened substantially before the first rate hike in march. >> i will say, i know that you have a dual mandate, you know that as well the last jobs report shows that unemployment is starting to tick upward for women and african americans. so i hope that the cure is not more consequential than what we're trying to achieve. recent reports reported that there's almost $1.5 trillion in commercial mortgages that will come due in the next two years, many of them held by small and re renal regional lenders, with property values declining these could be serious liabilities for many banks do you think that we may see some banks fail, as these mortgage comes do you? if so, what can we do ahead of time to prevent that scenario? >> so we're, of course, spending a lot of time on these issues and we have been for quite some time, and again, i think you put your finger on it. it's really which banks have concentrations, high

concentrations, of real estate that is not seen in the large banks. it's seen in some of the smaller banks. we've identified those banks and there's a supervisory toolkit where we work with banks to try to help them resolve those issues by, you know, raising capital or, you know, dealing with what's happening. you know, of course, what is happening in the office space nationally, there's an issue with people working from home and just less demand there's a sort of one-time adjustment going on. there are also other pockets of commercial real estate where there's some softness. we're working with banks to work our way through this we're very aware and focused on the problem. >> well, i'm concerned that it's a ticking time bomb, and let me just say that last week you said that commercial real estate risks are unlikely to pose a systemic risk because the loans are broadly spread and mostly held by smaller banks. how can ween sure that potential losses -- can we ensure they don't lead to the draining of

assets of small and mid sized banks and further consolidation in the banking sector, i don't want to be back to 2008 when i was here and asked to do extraordinary things >> we don't want to be there either, and so we're being pretty proactive about reaching out to these institutions trying to help them get through these significant issues again, it's not all smaller banks. it's just some of them have high concentrations in real estate, and it's not in the large banks which, of course, was where the problem was in 2008 and 2009. >> thank you. >> senator kennedy of louisiana is recognized for five minutes. >> thank you, mr. chairman thank you for being here m chairman, and to your colleagues thanks to all of you for giving so much to our country. as you know, our fiscal year, our meaning the federal government's fiscal year begins october 1. we're in the process of putting together a budget. >> that's the fed chair in front

of senate banking. let's talk about the economy and macro view of the markets. our next guest says the interplay between the stock market, stubbornness and strength of the market and financial conditions are getting tricky joining us former goldman sachs chief economist jim o'neill, now chairman of northern stone it's great to have you back. what a day to talk to you about not just the fed chair but what's happened in the uk and some of the moves in switzerland and norway are we at a moment >> just think how lucky you are you're in the in the uk, guys. you know 6 1/2 years after brexit, looks like we haven't a clue what we're doing about anything including inflation control. >> do you think the uk -- we had this debate yesterday about whether or not uk inflation is an sloonds in that policy decisions have been made that have resulted in certain

consequences, some argument more severe than they might have been otherwise? >> i mean, frankly, it's pretty disturbing that we keep on having so many repeated negative surprises, and as i'm sure you are talking about, if you actually look at core inflation to historic purposes as a lead indicator where overall inflation is going, in the uk appears to be going up and to be honest, somebody that is so immersed in pulling the weeds around and throughout all this data, on one level it's a bit hard to really understand why it's just so bad for us, and guess what, as you imply with that question, it's yet another sign of the ongoing consequences of brexit. it's partly behind my facetious comment at the start, whether it be a shortage of skilled staff,

shortage of any staff, our poor performance in trade, our lack of investment, you know, earrings that guys that were so eager about the great benefits of brexit have a lot of explaining to do what is also interesting, if you look at the many regions that supported that interesting decision, they're somewhat regretting the fact that they voted to do it it's pretty challenging and i have to say, as easy as it is to criticize the bank of england, i'm also quite sympathetic because, of course, the global leading indicators of implosion are all over the place are indeed slowing smaharply monetary growth in the uk is also now very weak so it's not easy i think the bank has no choice but raising 50 today but i think the next move is going to be highly contingent on

the core cpi performance going forward. >> jim, of course, we try to figure out what it means for the fed, which - >> yeah. >> has paused. won't call it a pause. signaling more rate hikes are to come we're also dealing with inflation that is more than double target and similar, i know we're not dealing with brexit, but like the uk, it's about the tight labor market and the fact that wages are still growing and still a ton of demand for labor it makes you wonder how far the fed will have to go to crack that and get inflation down? >> yeah. i just caught the clip you had on of jay powell and it's very interesting to see him referring to the service sector inflation. that is definitely the big problem here as i heard him say, i was reflecting on something i think i mentioned when last on, look at the pmi indicators around the world, you look at manufacturing, we're in some kind of global recession, but if you look at the services sector,

including in the uk, it looks like it's pretty strong and the dilemma appears to be, particularly post-covid and strange behaviors by some people around the labor market, including perhaps some not wanting to participate, it might be that the services sector is still too strong, including in the u.s. so i'm not surprised to see powell saying the majority of the fed wants to hike two more times. i'm not sure whether that will be right because it will depend on the evidence. what i do think is increasingly clear is the idea that rates are going to come screaming back down again is dubious in my opinion. >> jim, you mentioned manufacturing. manufacturing center of the world still seems to be china. i'm just curious, i don't know how closely you follow things there these days - >> a lot. >> what are your thoughts then

on what's going on there youth unemployment in the low 20% range. obviously, a slow down they're trying to do things to stimul stimulate the commeconomy. >> by coincidence yesterday, i had the pleasure of chairing an on the record meeting at chatham house for the minister in charge of the whole of international diplomacy and policy thinking for the chinese communist party, so a very senior official, and it was fascinating to listen to what he had to say it actually, the fact that he spoke in english, which is rare, is a sign of how experienced this guy is, and he was pretty candid, on the one hand -- of course, we quizzed him about blinken's visit earlier in the week and i get the impression that that was a deliberate effort by washington to try and put a floor under how bad things

were going between the two of them and i suspect we'll see more pr in washington about that in the next couple weeks, and that's probably a good thing because, against that, and i detected this from others at this meeting, but also the young people that i've talked to, including some of the business in the uk recently a lot of young people think the china dream is over. one of the things that used to impress me -- on me so much in the 30 plus years of going there, is just how young people were convinced the future for them was bright, something you never heard anywhere else in the world. that feeling doesn't seem to be that the policymakers have to do something about that or it espouses additional troubles along with the issues that china is facing. >> finally, jim, just on the u.s. consumer, we mentioned the

umish inflation expectations tame jpmorgan says excess savings maybe runs out in october. powell now just saying they're going to have to take a look at small banks with commercial real estate exposure. i mean, there is this camp that argues these lag effects, although late, are definitely going to hit, maybe in the back half >> i mean, i don't dismiss that, without sounding again too contradictory to the spirit of what i said earlier, a lot of the leading indicators, again, including growth in the u.s., are pointing that way. it certainly was a big relief for my mind to see the latest university of michigan inflation expectations, particularly the five-year one, which the fed never talks about so much publicly, but i'm pretty sure they pay a lot of attention to that, and i've already touched on some of the big global forces, primarily commodity prices, are essentially going

one way. i also have a chat with a central bank government from the eurozone earlier in the week, and he used the word about deflation in terms of supply side inputs into the inflation which was very interesting to hear so it's not impossible that even though the inflation indicators have been so sticky and so troubling in the uk, it might well be in another few months that we start to improve dramatically i don't dismiss that but it's a tricky time because, of course, linked to the complexity of it, the central banks are still in this job of sort of trying to prove their manliness, let's call it they just got it so wrong on this sort of transition type argument, and can't afford to have these expectations become embedded in the labor markets or for that matter the service sector >> that would be interesting too. especially given the print

earlier in the week that got the world's attention. really good work there talk soon. >> all right nice to speak to you guys. good luck. well, microsoft goes head to head with the ftc in court that will start in about 30 minutes or so. of course it's trying to complete that acquisition of activision the ftc says no, we don't want you dtoo that we'll bring you up to date right after this good luck.

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there's a live picture from the united states district court for the northern district of california it is in san francisco maybe one of the few buildings that has some people in it but that guy -- yeah, there he is, he's going in. he's waving. it's an important case going to be microsoft versus ftc or ftc versus microsoft it will be a five-day trial dealing with the activision/blizzard. we expect to see microsoft ceo at some oint, nadella, and amy hood the cfo of microsoft and on from there what's at stake here, in many ways, again, i've made the point so many times, this is an important hurdle for microsoft to get through to be able to

acquire activision but not the only one the one we have had our viewers focus on for quite some time ended up being the cma, the antitrust regulator that said no to the deal due to the competition they see being created in the cloud business at some point we'll see -- we'll see where that goes, but i'm being told right now, carl, we should go to steve liesman. >> some breaking news as q&a continues. steve, what have you got >> chair powell is really backing, again, the idea of two rate hikes, that it is the general -- what's the word i'm looking for? the forecast of the committee. he does see a path to a soft landing where there's a modest increase in unemployment, but really the slack of the labor market comes from reducing the job openings that's out there. a lot of talk, guys, about basel 3 and new banking regulations in the wake of silicon valley bank.

it was the interest yesterday in the house. it's interest today in the senate there's concern particularly among republicans that capital levels will rise and it won't solve the problem of bad management at so will con valley bank so, there's still a debate about how that's going and what the cause of it and what the right solution is. powell it saying there's pr proposals at the federal reserve. there's no key tails on the proposals but trying to get the level of capital right >> steve, keep us posted i know there's a lot of focus from lawmakers on new bank regulation a lot are worried about higher capital levels that could come in the form of new regs. >> i thought the comments from powell about commercial real estate mirrored our own conversation on this show about concerns he has and the conversations that seem to be ongoing between the fed and smaller banks with concentrations of commercial real estate loans. that's going to do it for us on awon the street" this hour stay tuned for another big hour coming your way.

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good thursday morning. i'm sara eisen live from the floor of the new york stock exchange setting the agenda for us today, forget rate cuts