points it had parroted its losses a couple of hundred times. the nasdaq, a pretty big percentage loss there. a quick year at the ten-year it hasn't been the story for most of the week as you can see. it's been right around 3.7%, and make sure you join us all the way until next week as it's friday "squawk on the street" is next good friday morning. welcome to "squawk on the street." i'm here with jim cramer, and the new york stock exchange. the s&p is on pace to break a five-week win. russell reconstitution today will likely bring the biggest volume day of the year now beginning with this run, all three major averages set to break multi-week streaks the nasdaq is on pace to snap eight weeks of gains and post its worst weekly stretch since april. >> plus, 3m's worst chemical

settlement reaching agreement on lawsuits that claimed it contaminated water supplies in the u.s. and ufc president dana white says elon musk and mark zuckerberg are, quote, dead serious about a cage fight let's begin with the markets this morning, jim. unwinding some of what we've put together over weeks. do you mind? >> no. i have been saying that this is going to be a weak period. historically this is actually -- look, from my friend larry williamson as the best historical worker. this is not unusual. we saw it coming i went with it you can see over the years that this period has just been one where if you want to be a trader, you should step out. investors, different in that i find it interesting that when interest rates go down, it means nothing for equities because interest rates have been going down all morning, but the stocks haven't been going down.

i want to give you a quiz because it's friday. >> okay. >> did you see where the vix is? you can't even see it. you need, like, a microscope i mean, this is incredible. >> you took a victory lap last night on twitter, and you should >> thank you >> you should because when you said it was going to 12, we were, like, what >> well, he was going to put me in a race car and make my head go like a rag doll i think there's a lot of complacency. i don't think the selling is over, but i think this kind of market where you get up at 4:30 or 4:00 and the market looks just kind of tepid, and then it just rolls over on nothing i mean, no strategists came out and said anything negative there was no -- no bad earnings to speak of. darden was good last night it just doesn't matter, and even tesla. i mean, ron came on and i think he spoke for 30 minutes. he spoke for 45 minutes about

tesla, you know, kind of like mr. wolff. >> 500 by 2025 for tesla >> in the year 2025, we're going to 500. >> he said it would be a multitrillion dollar company for some time. >> he's been right, but tesla was -- he walked it up when he was talking. he went from down four to being about minus one, and he's back four like he never said anything, david. >> yeah. it's been quite a run. >> quite a run >> right well, i think the cage match -- i think conor mcgregor is nothing compared to these two. come on. this would be -- they could raise millions for charity, and both of them could -- well, i don't know i mean, they would use better guys how about that >> we're going to talk about the evolution of that story. >> i have my own thoughts. >> keep them to yourself because no one cares because you spend hours with them. you have nothing to say. >> we call it producing and we have some things i'm sure --

we're going to segment that. that's how these shows work. it's okay. >> 20 years in tv. >> sinking in. you're right about the macro strategists though they're looking at diincidents n history with a 20% rally you give it '01, '02, '08, and part of the view is in coming years, we'll have substandard returns. >> i'm not buying that i think one of the things i feel is that we have so much stimulus you go back over and when you read the stimulus bills when they were passed and what president biden said about them, it was like we have an employment crisis in this country. we do. we don't have enough time. the bills were written that, look it is time to put everybody to work well, everybody is put to work now it's time to teach people how to weld. >> we have been talking about that for more than a decade.

it requires a high level of math skills >> we should teach math. >> if you look at the recent test scores, things are not going the right way. >> remember when our xl partners -- >> he did. he talked about linear algebra it was what he was focused on. >> i think one of the reasons -- when you looked at the original meta that mark zuckerberg had, it was all about how you could teach better, and i thought this could be the way to get americans up to speed for math because we're just not that good in math, but so far it's really been used by -- the net has been used -- i'm trying to remember who it's been used by. who's used it? who's used the meta? the non-apple goggles. what's using it? >> i don't know who's using it you were briefly. >> i spent some time then i went into apple and i

haven't really been able to recover recover. the rest of my life seems blah unless i'm going 160 miles an hour in a wheelie -- i want the vision pro the vision pro world is so great. >> you need to relax >> roth mkm meta, 255 goes to 315. >> meta is -- i now get more -- i don't know about you guys. i get more reels on tiktok instagram is on fire instagram is so ai and nobody cares. did you see ai releases right before they came out with that suspect quarter? >> on with us yesterday. >> i watched that. that's why i brought it up. >> they're going to spend $3 billion and hire 80,000 people or something. >> i don't know me today >> i don't know. i'm not afraid to admit that i don't know there's a handful of things i

know about most i don't it's a little different here it's the yin and the yang. >> you're the yin and the yang, and i'm nobody >> what do you mean? you're the guy in the mustang who looks like -- >> the dark horse. no, but i just go back for a second about this sub par return >> yeah. >> why make that call? why make that call like, what is that based on? do they know who's going to say, win for president? don't you think you should have to gain that a little? don't you think a president trump regime would be different from a president biden regime when it came to numbers? >> you got to make a call. >> you make a call >> i'm saying that we're in a very highly politically charged environment. how do i make a judgment that we're going to have sub par returns? >> i could throw a million other things at you too, but it would be part of that -- >> right now we have a president where if there is a merger like

if i'm, like, jim is merging with david -- >> no. >> hence when the amgen rises. >> we'll talk about horizon. that's some things i do know about. i will share >> we have to wait >> you do? >> we have to wait it's a tease talk about microsoft and the ftc as well. we'll get to all those things, jim. >> what is this, like, no work friday for you criticize? criticize jim friday >> i want to come back to the macro picture. let me share something with you that i have been told -- >> this better be darn good. >> at least it's a line of argument which is the consumer is as strong as we think, and we have a lot more example savings than we did after the great recession. >> right >> and they have a lot more equity in their homes as well, and that we're underestimating the consumer power even with the running off of the savings that accrued during covid. >> totally agree. >> do you buy into that?

>> 100%. >> like deposits were 15 years ago. >> brian moynihan, the ceo of bank of america is no longer bullish in the consumer. what he said was instead of the consumer being completely flush, they're a little less flush. when you read through mastercard for instance, they had unbelievable numbers about people going out and having, you know, spending their full heads. if it wasn't for lena kahn i think at amazon -- the amazon marketplace would be doing well. what are they trying to do she wants our bills to go higher so that -- what does she want exactly? >> i don't know. >> bwhat is her goal >> i don't know. i'm trying, but have yet to have an opportunity to speak with her. i hope to though >> you don't know? >> don't have what >> her on? >> i'm not in regular communication. let's put it that way. i can't tell you specifically, but it does appear they want to chill the ability of any companies to think about

merging. >> which is why i said if you had a different president, like a republican president -- >> the consumer has been abused by many of these deals resulting either in higher prices or monopoly power or -- >> she talks about, listen -- >> preventing others >> she says rich people get richer now, you know, have you ever read what is to be done? >> which one, by lennon or -- >> what? >> wasn't it >> "when worlds collide" >> trying to go back to my russian history. >> "what is to be done," lenin talks about -- i read vlad and lenin, and i read, hey plagiarism gpt. gpt, lenin >> okay. >> meanwhile, there's a report out -- >> now you're talking. >> it has microsoft sales higher

than people anticipated. >> yeah. i'm back fighting. i did see that >> there was a proprietary receipt data placed. this was sent to me and therefore they're saying that north american net sales will come in between 83.7 and $4 billion for the quarter they're turning positive. >> amazon -- i constantly talk about this their tone is getting more positive >> this is also covered by many of the companies that focus on trying to figure out which way their business is going, through the algorithm. >> my homework agrees with you. >> wit does? >> yes this is looking like a better quarter. i thought the fourth quarter would not be a great one because of amazon web services slowing, and by the way, oracle taking share. we forget that, but oracle taking share, but we've got kind of a more positive vibe. i know that doesn't sound like he's --

>> the last few days i'm thinking, the jpm, aws starts re-accelerating. i don't know if you saw adam lipsky's comments about ai >> i thought that was terrific. >> we're three steps into a 10k race. >> i loved that interview. that was great that was good. >> the ceos in the enterprise have been banning chatgpt in his view because it's an unreliable source of information. >> it's brutal, but it can be such a productivity enhancer. >> you have to spell words right. my friends' kids who have resumes, it doesn't start with gpt, but they would never submit it without running it through chatgpt. >> it speeds up the process of whatever you're in the midst of doing. yes. you should absolutely check, but it can still make things -- it can shrink the timeline of what a task takes. >> i use it every day. >> it's being used. >> i use it every day. >> it's being used -- >> i hate it though when something happened, you know, within 18 months and says, we

don't know anything. >> no, but you got to get four, first of all you're using the last one. you got to pay the 20 bucks. >> i did it to figure out what happens in the bear. >> you said i need to hire a prompt engineer. you need a prompt engineer this is a new job now. >> really? >> they know how to get it to tell you what you need. >> welders and prompt engineers? >> correct >> okay. all right. when we come back, the buzz surrounding a possible zuckerberg/musk cage match we already referenced that we'll hear what the head of the ufc is talking about a lot of news on lulu, 3m, carmax, target, and a lot more stay with us uld be the food i'm. 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. ♪ ♪ get $10 off $50 at petco, the vehicles are all-electric. the feeling is all mercedes. the choice is all yours. see your dealer for exceptional offers today.

we moved out of the city so our little sophie 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.

they both said we want do it he said, is he serious i said, i don't know let me ask him i asked him, and he said, yeah i'm dead serious, you know you know, obviously for -- and i agree with you, harvey this would be the biggest fight ever in the history of the world. >> well, that's ufc president dana white talking to tmz yesterday about the prospects of a zuckerberg/musk cage match is this feeling real to you? >> i think it needs a further drumbeat, and it will. i think you also have a guy -- anybody who is, like, can i get an interview with you, right had an interview with you which

i thought was seminal. >> thank you yes. >> that guy wants to fight zuckerberg is, like, he's kind of like bruno from my generation or calhoun >> i think he's bigger than 6'1" i don't know where we got that number from. he's closer to 6'3". >> i saw him >> he's a prince >> i -- i really hope they don't do this. i mean, i hope they do, but they shouldn't. they really shouldn't. >> why >> because you think zuckerberg would come in with a hidden instrument >> because any real -- i mean, what if one of them takes a real beating? really, you want to watch that >> giving them the business kind of thing >> i mean, i just -- grown men getting in a ring and -- >> it's for charity. >> for charity really you think -- they don't like each other. >> well, that's even better. >> by the way, i feel both -- i don't think we should watch

this, but at the same time, i won't take my eyes off it. >> we're in a new era. who would have thought 50 years ago that the ceo of ford would take jim on a wild ride? >> he's taking on cramer, look out. >> there's a difference between that and the extreme violence. >> that's not organized violence. >> technology. >> you wouldn't make it like that you would make it like the olden days, you know, when it was really, like -- >> so it would be fake >> yeah. >> okay. >> no, it would be staged. >> being schooled in what? wrestling techniques >> who's going to agree to lose in that case >> someone's got to throw it. >> mcmahon's going to throw a care in the ring >> zuckerberg could be a contender. >> he's in good physical condition. >> you do right to -- >> you did go to him >> who's going to win? >> brando should have won that

fight. >> truly i think zuckerberg has always been -- i think there's raw, naked aggression with that guy, and then when you look at musk, i mean, come on. musk just got to give someone a beatdown you know that he secretly just wants to take it to someone. >> he's already hurt himself with that sumo wrestler, musk. i mean, he hurt his back a number of years ago. this didn't help him >> you think he would have learned. >> for charity, these guys would both record -- here's the conversation boy, that zuckerberg, but you did raise a billion dollars for charity. >> they can both give a billion dollars for charity. they can -- throw the money in the ring >> write the check without getting in the ring. >> didn't musk give $44 billion to charity >> oh, twitter >> how about ron barron squawk saying it returns to the market in three to five years >> i know.

>> thank you when we come back, we'll count down to the opening bell on friday in t sme n'gonyere.umr. what do you get from the morgan stanley client experience? listening more than talking, and a personalized plan ♪ to guide you through a changing world. ♪ what do you see on the horizon? to guide you through uncertainty? or opportunity. 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 across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. what if we live to 100. i don't want to outlive our money. i keep eating all these chia seeds. i could live to be 100. we work with empower,

even if we do live to 100 we don't have to worry. eh, not worried. take control of your financial future to empower what's next. all right. eight minutes before we get started with the final trading session of the week. let's get a mad dash carmax is the leader right now >> let me make sure people know. i think ron barron is a great guy over many years. >> let's talk about carmax >> i want to be -- i want to talk about what is to be done and written by this. let's talk about carmax. >> thank you >> you ain't no bill nash. it's not a household name, and he is the ceo of carmax, and he

has been saying that there will be breakout quarters where you will start seeing him making far much more money than anyone thought, and we hadn't i mean, even though all the numbers look like they're down, the fact is he's doing far better, and david, the key thing about this is why you bought carmax -- do you know when they make the most money? when used cars go down and new cars go up that's what's happening. that's what's happening, jay powell that's what you need you need to see reversion where if you buy a used car, it costs much less than a new so people that don't have a lot of money can get to work, and that's what's happening so this is great news. this is the first of many good quarters, and that's why it's going nuts because the future -- used cars have finally gone down in price. >> why >> new cars, they finally don't have supply problems, supply chain. you can get a car. my daughter was for her bronco i said the other day, used

i mean, i saw a used bronco for what the price of a new one was because there's been such a shortage all the broncos were spoken for on the ford lot. please realize, do not sell this because this is the first quarter where we have the manufacturer suggested retail price actually higher and the used car lower, and that's -- they can make that >> that's good for carmax. >> it's been fantastic for car yn max they were using artificial intelligence earlier than everybody's talking about it because they have to gain the prices everywhere, and that is ai >> okay. >> yeah. >> all right >> i really like this company. >> we got a lot of things to cover when we get back we'll talk microsoft >> and dogs. and dogs >> and we'll talk 3m >> i-95. >> the settlement. we'll talk about dogs because we got bark doing something here. >> dogs. is that your dog >> no. my dog's not here. >> you know what if nvidia had been here, that would have been houdini. >> five minutes, opening bell.

stay with us

3m is up in the premarket, and they're settling hundreds of lawsuits that saying forever chemicals contaminated their drinking water they'll pay between $10.3 billion and $12.5 billion. the settlement will cover public water systems across the u.s jim, not solving all of their t troubles on this front. >> no, but i will say there have been articles of late saying that 3m may owe $50 billion on this, and there were these catastrophic stories which just said they're -- certainly their dividend status was in danger, but mostly that the company was having that sense of crisis, and, you know, mike roman inherited these problems for the most part. there were very few cases when he came in georgia pacific won an important

ruling that's a private company when it came to problems it had. schmidt klein had one. everyone is waiting for j&j. >> it doesn't necessarily deal with sort of personal injury. >> no it doesn't. >> or a number of states that have launched other lawsuits >> no. >> these class action lawsuits, and then you've got combat arms which there's also expected. perhaps there will be a settlement of significance what investors want to know is will they return a dividend? >> mike is very straight forward calling it a step forward. not saying it's the end by any means. >> this is over a long period of time, and it's not like that -- all this money at once >> i'm glad you point it out nobody is offering a long stock. >> no, but still when it comes to the cash flow of the company,

and the settlements -- >> it's a problem. >> -- and the aristocrats, right? >> you have those complaining directly that -- >> i guess my question is do you buy the stock? >> no. absolutely not i'm taking the excistential. i don't want to end up owing $50 billion on this issue. not if they settle this. i'm not sanguine about the stock, but i'm taking off the so-called doomsday look. >> yeah. we talked a bit about some of the warnings from chemical companies in the last few days >> also that was really in trouble. >> there's the opening bell by the way. pretty negative breadth. it is bark in celebration of its second anniversary of listing and national take your dog to workday. i think we have some dogs on the

floor. the nasdaq, it's an array of technologies and utilities, solar tracking technology. you've long been a fan of anything pet-related. >> i am a monster pet person a mutt guy, a rescue mutt guy. our dogs all come from some kill center in tennessee before they're killed, and i actually have -- i don't have contempt for the people who get the pedigree dogs, but it's better to save one than it is to just have one bred for $3,000 what is that what is that about >> i don't know. >> good, thank you >> we have a couple of calls we haven't gotten to, jim target's won jpmorgan, negative catalyst. they're talking about everything we mention every day student loans. >> student loans second half risks. >> i absolutely love -- these stories, it's the same thing over and over again which is younger people skew toward target they have student loans. don't own target i mean, what company doesn't want younger people skewed i mean, at this point, this

thing is being skewered. obviously they have problems with -- i don't know how to call them discrimination, nondiscrimination. they don't have a great quarter, and probably don't have the best merchandise. i think the quarter was probably really big, but i'm saying that to continue to have the same narrative every day that it's the student loans is beginning to get tiresome. >> yeah. there was some credit card data that said maybe they're closing the gap, that they've lost over the last couple of weeks meanwhile, uaa similarly wells cuts equally, jim. eight. >> yeah. people weren't -- look i think kevin is trying to do a good job there, but i think people were concerned he didn't pick a new chief executive from the footwear industry. kind of not at all in the footwear industry. more of a hotel. >> more of a what? >> more of a hotel business. >> hotel

>> you're mumbling i can't understand what you are saying speak up >> i'm trying to remember where she was from i think it was marriott for heaven's sake. i'm googling >> i don't even know what you are googling what are you doing >> will you stop bothering me? i'm trying to think. >> target, under armour, and lulu they're struggling to find a buyer. >> introduced mirror on my show, and they paid a lot of money for it >> i thought you liked that mirror deal. >> my daughter loves it. she's now put it on her ipad like everybody else and said, will you please get this thing out of my house in it's like a funhouse mirror, you know? >> yeah. >> indeed, under armour, picked from marriott. he didn't want to go he was thinking about picking someone else, a welder, but instead he got someone in the hotel business. >> got it. >> oh, god >> you go deal with that

i don't know what -- kevin or whoever you're texting with. i'm going to talk about trials and trials to come trials and tribulations, and back to one of your favorite subjects which of course, is the antitrust law in the country and how it's being applied or misapplied perhaps some would say on the other end of it the big trial right now is going on in san francisco. we've talked about it. microsoft vuersus the ftc. it's a $95 million all cash deal, and the current merger agreement expires july 18th, and the ftc says you can't do this yesterday, some interesting back and forth. it will continue today today's big witness i think is phil spencer who's stepping up you're going to have that deposition that was taken some time ago from the ceo of playstation. jim ryan here's a look at some of the

arrivals i believe from yesterday given we haven't gotten started yet today, but what we can or what we heard yesterday was interesting in terms of at least microsoft presenting the following from an email from that man, mr. ryan who again, his taped deposition will be played in court. that's my understanding. talking about exclusivity of "call of duty." he was discussing the deal itself he said, listen. it's not an exclusively play at all being the deal they're thinking bigger than that, and they have the cash to make more moves like this. i've spent a fair amount of time with phil and bobby, bobby the ceo of accuvision i've spent time with them, and i'm pretty sure we will continue to see "call of duty" on playstation for many years to

come he's, like, what are you talking about ftc? sony, the main plaintiff here in some way has said, we don't see it as an exclusively issue >> banned set of facts million friend. >> they come back and say, what about the "indiana jones" game that was going to be widely available, and then you made it exclusive to xbox, you know, how about that there are some issues. >> that one. >> there's a new one coming. this last one. harrison ford. are you trying to pull my heartstrings >> "temple" was the darkest. >> it was the best >> i can talk amgen horizon now or i can wait. what would you prefer? >> i think they're trying to block this deal, that would be great for amgen. we've talked about the case. it has finally been filed because there had been kind of waiting. it was just hours before the deadline of getting this

so-called alj filing the united states district court in the northern district of illinois and the eastern fdc, they added california, new york, washington, minnesota, wisconsin. those all typically fairly progressive ags to the case as well seeking a temporary restraining order, preliminary injunction preventing amgen from buying verizon people have reviewed this case at least as it was made initially. they don't believe the ftc has much to bring to bear here i've mentioned in the past the possibility of settlement talks, and it is my understanding that there was some back and forth around, is there some sort of settlement but the problem with amgen tends to be the ftc staff is not believed by the parties involved to always be able to present what will end up being conclusive meaning that the ftc staff can come and say, all

right. we want to try and figure something out with you guys and we want to figure this out amgen don't believe they will make it stick because the commission made through the three democratic commissioners right now can overrule them, and that that is different than in the past we had a 99.9% chance that some of the attorneys who deal with these things and told me that what the ftc staff is going to be true. no second request. you get a second request >> a lot of this is -- >> we're not going to sue you. then you get sued. there's a lack of perhaps trust that what the staff is actually offering will actually come to fruition so while they're worse than settlement talks and they didn't get anywhere we'll see whether they continue, whether they're able to sort of get to some sort of agreement, prior to trial which would take place most likely in september and october. >> would you agree with me that the staff is nonideological? historically it's a solid staff looking at certain indices

reaching conclusions and it's not what's happening. >> i know the commissioner's led by lena kahn would probably beg to differ with that characterization, but it is something certainly that you hear -- again. take it from the companies who are dealing with that. they have their own -- they have their own view. >> not from that deal. >> we'll keep an eye on amgen horizon. it's an important one, again, if it does go to trial because there are so many people who believe the ftc's case which is based on a view of composition that doesn't seem to be an issue here, and it will not be a strong one they have five states along with them now as well >> you had kroger's last quarter, and rodney mcmullen said they have endless possibilities selling different divisions. >> that's kroger trying to buy al albertson, and that would satisfy the antitrust regulators. >> i think rodney's terrific, but i just -- this kind of action tell mess, stick to your

guns >> different things. >> the tone. i know you can't really -- the work around will ultimately fail any time you set this up i just find, carl, the bid underneath that we have with the mergers, they don't count. >> it does chill things. >> wrote yesterday, khan's entire career are due to a 96-page paper she wrote where she effectively called amazon a mon monopoly why shouldn't she be recused for an inability to be fair? that's what amazon said. >> they find these names of these different attempts to be able to say this for the consumer >> it's an enemy and it's a simple thing to say, big pharma is gadbad, and they're screwing

you, consumer. the amgen verizon is different >> theamazon has made it so a l of things are affordable why is she -- >> you know what you've got to prove it that's the god od part of the system, and it's not going to be easy it has had a chilling effect on them, and we talk about that all the time that said,ly te i will tell you typically bankers and lawyers that i do, a little more positive on deal flow. >> good. >> a little more positive on stuff that's out there on the possibility -- just it seems as though a lot of companies have been waiting and waiting and waiting and maybe they're finally ready to say, all right. we'll go even if by the way, i'm going to end up in court. >> if they can lose a string of cases and suddenly they would be the laughing stock this team has made them.

>> we'll start with microsoft activision even though we say and can't say it enough, it doesn't mean enough stock will be required for activision because the cma's opposition to the deal, the antitrust regulator from the uk, the ftc loses and they're unable to get a preliminary injunction. >> you read a smoking gun memo i would just offer that. i wouldn't even do anything else i would just say, okay what do you have for us, microsoft? here the defense rests. no i would rest after that. >> they're not resting they're coming back with certain arguments of their own so we'll be monitoring those proceedings. they continue today in san francisco, and then the first three or four days of next week. >> well, you got to admit, david, that there are companies that are very, very low in price that you would expect that someone because the fundamentals aren't that bad, someone would

be interested in doing, but is just saying, you know what? i'm not buying paramount >> did you see the wells note on paramount this week? yeah, interesting -- they're already underweight and have been, but they write another another one to two years of throwing good money. they think the dtc strategy is misguided and they realize they probably won't >> there's only one thing you can say to them and that's zuckerberg versus musk. >> if they can get the rights. para paramount, direct to consumer. how much money can you throw at it and how long can you continue lose for how long? that's the thing of course, whether it's max which has gotten to sort of neutral, whether it's disney plus, our own peacock, $3 billion a year right now. at what point, do you sort of say, you just can't keep doing

this paramount is in a different position, and they had to cut the dividend sherry redstone had to make some -- deal with some stock she didn't want to have to sell because it had fallen so far she actually took an infusion from -- >> that was unscripted >> from byron trott's new venture. it's worth watching. this idea that they could sell to the studio. >> we don't know whose paramount position buffett is, but buffett's banker is trot. >> they did come in there to natural amusements with preferred -- >> what an ugly take >> paramount, it's hard to figure i come back to the fact that it was almost 30 years ago that the fight for paramount between barry diller and sumner redstone took place, and the deal ended up being $10 billion, and that's not the entire thinking.

>> meantime, you're right about "mission impossible" is coming the next couple of weeks. wbd still in the headlines, whether it's tcm or cnn. >> they can't stop writing about that. >> how about muka going to tiktok >> a long time had communications at disney all of us probably had an opportunity to deal with her over time. >> yeah. >> she holds her own let's say that at the very least. >> say, yeah >> it took many years, but we finally got to a nice base. >> i took a long, long time. >> long time >> she's on tiktok now which is interesting. i'm not sure what her influence will be there, but it'll be significant. >> very powerful, david. >> really quick on oil, jim. did get to 68. $6 $68.06. >> we're breaking down here. it won't help powell because that's not obviously what they're really focused on, but

oil's -- we owned a couple of oils and we're underweight, but even through the trust, and yesterday i was looking at pioneer which is i think the best, and it broke down below our basis stubbly and i said, maybe, we should buy some. we had no enthusiasm for pxd which has the lowest cost because i just think things are going lower. >> pmi's missed in euro zone, and now in japan, and dwooerting our own. let's get to rick santoli. >> good morning, carl. headline manufacturing from the s&p global expected to be 48.5, a big miss 46.3, and these are june preliminary, and in a couple of weeks, they will change. 46.3 is the lowest to of the year, and you have to go back to december which it was 46.2 when it was the low this is big-time moves and if we look at the services pmi about as expected, 54.1, 53.6 in

april, and this is holding up much better. in the rear-view mirror, 54.9 for our final read last month, and finally if we get to the composite 53 we're expecting 356 .5 this is the weakest level since march, and this is in a disappointment this is unchanged on the week. it's down big on the session all maturities outside of the two-year right now are down in yield on the week, and the two-year just a few minutes ago was -- why am i bringing this up central bankers are in focus along with recessionary implications and the market is grappling with those "squawk on the street" will return after a short break

this tiny payment thing- is a giant pain! hi ladies! alex from u.s. bank! can she help? how about a comprehensive point of sale system... that can track inventory, manage schedules- and customize orders? that's what u.s. bank business essentials is for. (oven explosion) what about a new oven, can u.s. bank help us there? we can serve loans in as fast as 12 minutes. that would be a big help!

huge! jumbo! ginormous! woo! -woo! finding ways to make your business boom. that's what u.s. bank is for. we'll get there together. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown

to improve short-term memory. prevagen. at stores everywhere without a prescription.

dow down 185 to start this friday the nasdaq, you can see, down 200 or so on the ndx not too main gainers in there, although you will see ross stores, pepsi, t-mobile, ielnt s&p down 35. take a break, be right back. from big cities, to small towns, and on main streets across the us, you'll find pnc bank. helping businesses both large and small, communities and the people who live and work there

grow and thrive. we're proud to call these places home too. they're where we put down roots, and where together, we work to help move everyone's financial goals forward. pnc bank. only at vanguard you're more than just an investor you're an owner. that means that your priorities are ours too. our interactive tools and advice can help you build a future for the ones you love. that's the value of ownership.

so, you've got the power of xfinity at home. can now take it outsideure f with xfinity mobile. like speed? it's the fastest mobile service around. with the best price for two lines of unlimited. only $30 bucks a line per month. that's hundreds in savings a year when you wave bye to the other guys. save hundreds a year on your wireless bill over t-mobile, at&t and verizon. and right now, get up to $1000 off select samsung phones. switch today. is it possible to protect my business from cyber threats? it is, with comcast business. helping every connected device stay protected. yours. your employees'. even... susan? hers, too. safe. secure. and powered by the next generation 10g network. with comcast business, advanced security isn't just possible. it's happening. get started wih fast spees and advanced security for $49.99a month for 12 monts plus ask how to get up to a $750

prepaid card with qualifying internet. . the gamestop stock saga is set to give the big screen treatment. the film ftrailer for "dumb mon" dropped yesterday. >> i will pick a stock and talk about why i think it's interesting and that is gamestop. >> i love this guy >> i'm hooked into gamestop. >> i think they think it's a good investment. >> it looks like there's one guy driving all the buying. >> who is this schmuck >> dumb money, man. >> happy to take it. >> wall street is betting that this company is going fail if it fails these hedge fund people make a ton of money >> 70,000 people watched this video. >> i love you!

>>. >> jim, whether it's apple, uber, wework, hollywood loves corporate sagas. >> i watched the show. i can't wait to see this, frankly, my colleague david faber is in it and looks to me so far as a voice of rationale. >> just a quick little picture in the trail are. >> along with any number of our colleagues but the casting is great i mean seth rogen is - >> real casting. >> vincent and stevie. >> it's going to be -- i think it's worth watching. >> paul as roaring kitty it's great. >> look, we all remember that period, and it was, you know, i hope this movie is as vicious as they were. this was not -- this was not fun. this was let's destroy people in order to make money and it's one way to make money and i think that they felt - >> this is a comedy. >> comedy in the context that,

you know, there was something that occurred that was supposed to be the beginning of a revolution it was the end of a revolution. >> yeah. >> didn't last long. >> no. >> by the way, quick programming note on that note, encore presentation of our documentary "making of the meme king" airs tonight at 6:00 p.m. eastern time before we let you go, jim, what's stop trading? >> i think this is a really interesting moment here. you have darden, i was going to talk about, the stock was about 30 cents, only 80,000 shares traded now $90,000 shares. almost every analyst was positive they had great numbers for olive garden, amazing numbers for longhorn i think it's going to be a terrific acquisition 3% yield and gene is retiring, just amazing. but this is a terrific call and i think it was a great quarter and the costs are coming down. it is the place that people want to go. olive garden numbers are incredible. >> interesting

they talk about traffic slowing with gdp. >> david and i are probably going to go there. >> when you go, what do you go, for the rolls? >> i like the rolls. never ending pasta sounds good to me. >> take away the thing in the middle of the table, don't you think, the game thing. >> sure they should. >> you can't look at your kid. >> right. >> get rid of it >> yes. >> i will. of course. >> does he have any idea what i'm talking about? >> none. >> the bloodies at longhorn are the best. >> at longhorn steakhouse. >> unbelievable. >> on that note we'll let you get your weekend started and see you later. jim cramer we'll take a break here. some weakness on this summer friday 4350 don't go anyerwhe. [due at target in 5!] copy that. make a hard left down the alley. network's got you covered. [please confirm requesting back-up.] -changing route. -go. roadblock ahead. ...back up, back up... reverse! reverse!

next level moments, we're 30 seconds out. need the next level network. [north corridor, hurry!] -coming through! -or 3, let's go. the network more businesses choose. transplant received. at&t business. ♪ ♪ every day, businesses everywhere are asking. is it possible? with comcast business...it is. is it possible to help keep our online platform safe from cyberthreats? so we can better protect our customer data? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues? we can help with that, too. with global secure networking from comcast business. it's not just possible. it's happening.

what if buildings could tell you how they could be more efficient? i'm listening. well, with ibm, you can use software to help you connect and analyze data— from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something better for everyone. that's the sustainability solution ibm and a global real estate company created. what will you create? ibm. let's create. ♪ old school wisdom, with a passion for what's possible. 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. ♪ 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 take a look at stocks here in the early actionp we've got economic data to digest. stocks are weaker. the s&p down 0.75%

adding to the declines we've seen this week tech getting hit only two sectors in the green, utilities and real estate. tech consumer discretionary communication services are the worst performing sectors and that's why the nasdaq is down so much 30 minutes into the trading session. three big movers we're watching. 3m agreed to pay $12.5 billion to settle hundreds of lawsuits brought by cities that said their drinking water was contaminated with forever chemicals made by the company. the class action settlement will cover public water systems across the u.s. that cities say were contaminated by the 3m chemicals in firefighting foam watching shares of carmax. the used car seller beating earnings estimates stock up 30% this year finally look at virgin galactic shares dropping on news it's planning a capital raise thespace tourism company wants to raise $400 million to expand and improve its fleet on top of $300 million that company raised through a common stock offering.

stock is getting slammed we'll turn back to the broader market as we look to close out the week, guys, down 1.4% on the s&p, carl, which makes it its first losing week in a while and the focus this week is all around central banks that were even more hawkish than expected and just hawkish and continuing their fight against high inflation and raising rates around the world, even if fed chair powell paused. he indicated more is coming. and now weaker manufacturing data got it in europe overnight and in the u.s. just in the last hour and that's all putting a bid in for treasuries. >> eurozone pmi misses on both fronts japan pmi misses i think it was jpmorgan last night that said we're in a period of boiling the frog in their view, and that is you're slowly keeping rates elevated, continuing to add to rate hikes, because inflation remains sticky and especially in western europe, that's the area of concern. >> right so now we're wondering, we have a recession potentially in

europe and ecb and the bank of england are continuing to fight high inflation and you wonder how much it's all going to go. we have a ton of fed speak we're trying to digest here in the u.s. for instance, bostic the atlanta fed president, raphael bostic, speaks again he's had a lot of comments this week and people are paying attention to him as sort of center, although he's leaning dovish getting inflation down is job one. the most recent comments inflation is too high. i'm trying to minimize the dislocation as we get inflation under control. i am hopeful remember his stance is, we kind of stay at this level. he says the bar is high to raise rates further, so not echoing what his colleagues like waller and bowman have been saying on higher rates but as important message, one you've been hitting is, that he thinks it's important to stay restrictive and calls it a passive tightening if we stay at these high levels to get inflation down instead of continuing to raise rates or cutting rates. that's kind of the message we're getting from him.

>> okay. do we believe it >> i think it depends what the inflation and the jobs numbers show, which is kind of a tricky spot that powell's put himself into, just relying on one data set for the next month to determine what they do, but the market is giving him the go ahead to raise rates in july more than 70% chance the question is what happens after that will they go again or will they just pause? and it does -- you know, yesterday i highlighted the fiscal side of things. we don't talk about it enough, and i really have to think rob kaplan the former dallas fed president for enlightening me on how much fiscal policy right now is working against monetary policy right. monetary policy is trying to tighten and squash inflation all you have to do every day is google arpa, american rescue plan act and infrastructure. i did it today and guess what, these counties are trying to

figure out how to spend the money. chur rock massachusetts get money for waste water project, for instance we're picking all sorts of - >> arpa is -- we've got arpa, which one was that >> american rescue plan act, which is the $2 trillion the biden administration passed when they came in where people said we had trillions in covid, but we still have it. >> that was not the infrastructure act nope that's something else. >> these are infrastructure deals in many ways or things that money is being used. >> building mental health centers, buying ambulances for municipalities. >> and then the ira which is also kind of infrastructure related even throw it's not. >> the inflation reduction act. >> that is the largest of the three, i believe n terms of the expenditure or no? >> correct trillions of dollars that, you know, i'm not criticizing that because a lot

of that is necessary to rebuild and build us for the future and like evs and broadband. >> and renewables. >> renewables. it's necessary stuff, but all i'm saying is that there is this infusion of cash going into municipalities and mayors of towns are figuring out, trying to figure out what to do with it and the bottom line is, we've got a tight labor market with not enough workers and we have a ton of money still flowing in to get these projects built department of transportation is still every day dispersing from the infrastructure act and that's adding to these projects as well. all of that makes it harder for the fed to fight inflation, but on the plus side makes it harder for us to go into a recession. we wonder why are we not in recession? manufacturing is in recession. the pmi number is under 50 for several months in a row. services are not jobs are strong. and i think that's part of the explanation.

let's continue the conversation with the former fed vice chair roger ferguson do you agree, fiscal policy is working against monetary policy here and that's what's going on? >> i think that's part of what's going on for sure, as you just pointed out, there's a lot of stimulus in the pipeline from what's already been approved it is meant to be -- supply side which over time hopefully will reduce inflationary pressures, but right now, i think it is driving forward the economy in a way that's making it harder for the fed to do its job. >> what's that going to mean what do you think with regard to fed hikes? are they one in july and then done or more to come >> i think two is more likely than one in july and done because inflation is sticky, you heard the chairman say while headline inflation has come down due to energy prices coming off and to some degree food, core is still very, very sticky at a number that's almost double,

more than double the 2% and i think you heard chair powell said early this week that two are on the table he modified that a little bit to one. i think two is more likely than one. >> so, roger, what's interesting this week is that we saw the response from different central banks around the world we got a double from norway, a double from bank of england which was a surprise to the markets. the ecb is still firmly going forward. the bank of japan is still easing even though their core inflation overnightsurprised t the upside you mean, i've got this great panel next week at the ecb forum where i will talk to the central bankers. do you think it's problematic they are moving in different directions at different speeds >> no, i don't think it's problematic. each central bank is looking at its own economy and trying to make decisions for what they think is right for their economy. what's interesting is a general theme around the globe that inflation is sticky. it may have different causes,

but i think there's not one central bank right now that is anything other than leaning in towards the possibility of raising rates and to a point that was made earlier clearly slowing the economy. we've seen pmi indices come in that are a little weaker we know our housing sector is weak so i think what we're hearing from almost all central banks is, we are staying the course until we have a high degree of conviction that inflation is definitively coming down towards our target and the targets around the world tend to converge at a 2% number. >> roger, move away from the fed for a moment you're a board member of alphabet they are one of the leaders in generative a.i i'm curious, to the exteptsds tent you're familiar with it at all, the productivity gains many economists are trying to figure out in terms of what this new technology will mean over the next five to ten years do you have any thoughts

>> i think i'm in the camp that most are, which is there will be some productivity gains. one of the things that's very interesting about this technology is that it seems to be relatively easy to put into use in business context. there's some technologies that are harder to use and you don't see the gains. generative a.i. appears to be one that individuals can use with very little training. i'm hearing reports from various business people about using generative a.i. in a number of very interesting ways that are going to, i think, lead to, you know, greater productivity now some of that may be hard to measure, so it may not appear exactly the same way other kinds of productivities increases have appeared, but count me in the or optimistic camp that generative a.i. is going to be adopted and is being adopted relatively rapidly and is going to have some positive impact on productivity in various parts of our economy. >> as a board member of alphabet are you concerned at all in

terms of the use of technology when it comes to those who worry about what it means long term for humanity >> i don't come on the show speaking as a board member of alphabet we'll let management speak as an individual, i would say the science is one and technology is one we have to learn to use and control the alphabet team and alphabet management will speak for themselves as a person who has observed generative a.i. in many locations, it's pretty impressive what it can do, but as with new technologies, i'm sure we'll learn from things we need to understand better to make sure that we get the positives and not the negatives. >> you think the fed should be think through this stuff, if it ultimately is going to have such a big impact on productivity and the labor market i mean, inflation potentially very disinflationary, right? what's the timeframe for all that >> i think the timeframe is relatively elongated

certainly, right now, the fed has to he focus on the short-term target and the fact that inflation is sticky if we think about longer term issues, there are pros and cons, so generative a.i. may well increase productivity, and therefore, potentially the supply side and make inflationary pressures a little lower in the future. on the other hand, there are videos worried about the decoupling from china and so-called deglobalization, near shoring, potentially creating greater inflationary pressures there's also the big question around the world of aging populations and what that means for productivity, so i think there are a number of factors that will generate new insights into not just the u.s., but globally, as to whether or not inflationary pressures are increasing, decreasing, over a long period of time, but that is not going to take any central bank's eye off of the short and clear and present danger of inflation that is clearly sticky and above the 2% target in

almost every jurisdiction. >> well said thank you. roger ferguson appreciate it. just a reminder, tune in next wednesday on air and online for huge ecb forum package on central banking where i'll sit down with the head of the federal reserve chair powell, christine lagarde, and the head of the bank of japan before we leave the conversation, i don't know if you heard about what happened in the bond market yesterday, nasdaq did a five-part $4.25 billion issue. it was a huge event and there was more than $36 billion in demand hugely oversubscribed from every single buyer, foreign buyer -- >> pricing come in, do you know? >> i don't know exactly but the demand was exceptional i'm told and -- >> different tranches at different maturities >> apart was nasdaq. it was the liquidity, they haven't sold a lot of debt speaks to the fact that capital markets are functioning well and there's demand for investment-grade credit. >> yeah.

see how long it lost when we come back, a road map for the rest of the hour battle of the billionaires, elon musk promising to fight mark zuckerberg. >> hurdles facing the banks as regional names continue to under performed. >> speaking of yields, the pbest places to find income in this market big show straight ahead. business was steady, but then an influx of new four-legged friends changed everything. dr. petsworth welcomed these new patients. the only problem? more appointments meant he needed more space. that's when dr. petsworth turned to his american express business card, which offers flexible spending limits that adapt with his business. he used his card to furnish a new exam room, and everyone was happy. built for dr. petsworth business. built for your business. amex business. man, i feel good. could be the food i'm eating. 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.

a battle royale of tech titans tesla and spacex ceo elon musk the world's richest man? for now. can his electric persona drive him to victory or will he be left seeing stars? in the other corner, the marvel of the metaverse meta ceo mark zuckerberg ready to zucker punch you out. >> battle of the billionaires. zuckerberg and musk talking about a cage fight, but which stock is winning on wall street? it is a meta versus tesla showdown joining us here at post nine, dan ives from wedbush securities bullish with a buy went to 300 recently i think and then mark mahaney from evercourse has a buy on meta and a target of 350.

can you believe we're talking about this, the fight. >> look, i think the cage match could be real and ultimately from a stock perspective - >> you think they're going to physically fight like in a ufc arena? >> i do believe this beef could be settled in the cage between musk and zuckerberg. >> really? settled? >> this is a beef that's gone on for many years, and i do think that this is not just hype i think they could really fight in october. >> mark, i'm wondering whether or not you saw meta and tesla as the reeminent showdown in technology as opposed to meta, apple or something else? >> i do, carl. i think it would be meta apple seems like more of a fight. it's kind of interesting this is the second personal scrap, if you will, that zuckerberg has got noon. tim cook and now elon musk my guess is that if there were a

cage match, i think zuckerberg would win. i need to get that out i think he's been training pretty hard. i follow him on instagram and facebook he's put a lot of time into it i would worry if i was a tesla shareholder. >> you know, is there actually a worry if this really -- if dan is right and these two really get in the ring and physically inflict harm on each other, mark, is that good for either company? is there a -- i don't know like how do you view that? >> i view it as we need more female ceos. >> from a stock market perspective is there an impact >> i certainly hope they don't do it. i just assume this is great theater on their part. i would leave that i also want to -- these are very impressive entrepreneurs, so, you know, it's great to see them hopefully they're putting this tongue and cheek and want to entertain people that's great. i'm a fan of meta the stock and i think i'll just throw this out, i think zuckerberg he runs

a company that's a lightning rod sometimes for controversy because it represents our view and some of those views aren't great or tolerable to other people i actually think he gets under appreciated for the vision he's had as the founder and the ceo of this company. i think people always give musk a lot of credit, for good reasons, one of the reasons i like meta as a stock, i still think it's dislocated, despite the rally year to date, still trading at a discount to the market i think that's why there's upside and i think zuckerberg deserves more respect than the market is willing to give him. >> is this twitter versus facebook as a battle for social media supremacy and if twitter comes back in terms of ad dollars they have a new ceo, linda yaccarino, does that come at the expense of facebook and meta at all? >> i don't think so. i think the numbers are different. i hope ta twitter gets reinvented, reimproved and does better i think it's a valuable tool

i find it a little bit ironic, i think musk came in to twitter and really wanted to ween it off of an advertising model. we're not weaning off if you've given the ceo search -- nothing wrong with running an ad-supported social media model. i hope it's successful and i think he can prove -- my guess is he will prove he can turn it around at a lower cost basis, good constructive signal across silicon valley. >> i wonder whether or not ron baron on squawk this morning never needs prodding to talk bullishly about tesla but are we in a period where charging standard is becoming real, the idea they would supply batteries to legacies becoming real? will that dovetail with mega storage and megapacks? a new story developing >> i think it's a new story. almost an ews moment for tesla in terms of the sum of the parts. i think you'll see valuation downgrades across the board, but i think if you're able to see far through the trees what's happening here with tesla, the

sum of the parts, it starts with the super charger and then batteries and i think a.i. as well is just another part of the sum of the parts. >> what does that do to the attention we pay to deliveries, right, and the pace of delivery growth >> i think it's, obviously, important. quarter to quarter but ultimately right now, they're paving the way for what really could be the castle that they've built at tesla now others are calling in terms of what they can ultimately monetize, i think that's really the difference in the story. on sum of the parts perspective, you can now start to rationalize a trillion, trillion and a half type market cap when you look out the next two or three years. >> you've got to base it on that castle building thesis, don't you? not on -- backlog is going down in china it's going down in the u.s., isn't it is near term that going to be an issue for the stock to move higher when we start to get some of these numbers >> near term, could move the needle over the coming weeks when we go into delivery, but

most investors right now you look can they hit 1.8 million deliveries for the year, i believe they can i think the price cuts have started to subside margins are important because i think that goes over to the next quarter or two the golden goose for tesla is starting to play out that's why i think it just comes down to like they are playing chess. others are playing checkers. >> how about musk in the ring? who do you like >> give the ju jitsu zuckerberg has had you have to give him the advantage. if musk gets the right training going into october, it could be a battle. >> he says he wants to lay on top of him flat or something. >> walrus. >> but musk has had other beef i know zuckerberg has had it with cook, musk has had it with a lot, bezos, lot of billionaires. >> he's had a lot of beefs, but i think this is a real beef in terms of him and zuckerberg, and that's why i think it's one

where musk -- it speaks to what we're seeing with bitcoin i-- bg tech, but this could be a real one going on in the cage. >> finally, mark, i noticed -- one of your peers on the street went to 315. i think they raised eps estimates by 12% we have movement in tiktok management have some of those competitive threats or benefits even regarding tiktok gone away >> i'm not sure, carl. maybe they have. i guess there's an open question about whether tiktok would be banned looks like the enthusiasm for doing that has died down i refer to that as incident dependent development. another balloon coming across and that increases the odds of a tiktok ban i'm not sure really what's best, what's the best outcome there. i'll stick with meta this thing i think is sustainable 20% earnings grower and deserves a 20 p/e multiple

and that's a 350 stock i don't think that's an aggressive price target. and they continue to show cost discipline that's really key if they kind of size down this meta verse investment spend and cycles with rebuilding the ad tech, click to message opportunity they've been building for years, i think that leads to excel rating growth, margin expansion, they buy back stock. you want to be long in an asset like that when trading at 16 times gap earnings that's why it's still our number one pick. >> good stuff, guys. great jacket, by the way. >> great to be here. >> thanks. >> this would never happen if we had women ceos who can build the bigger rocket, who is going to fight each other. it's ridiculous. >> i agree that's a segment i was not sure we ever would have had who do you like in the fight, dan? by the way, it's going to only motivate musk if he hears you saying zuckerberg will beat him. no, he's not. >> that's real ju jitsu.

>> it's not about size when it comes to ju jitsu. thanks see you later. >> musk's mother is begging him not to do it. there's a mystery chart. coming up we'll look at one asset having the best week since march. e ll nt.is and what is behind thray,ex good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. good night! hey corporate types. would you stop calling each other rock stars? you're a rock star. you are a rock star. rock stars. please! do you know what it takes to be a rock star? i've trashed hotel rooms in 43 countries.

i was on the road since i was 16. i've done my share of bad things. also your share of bad things. we know that using workday for finance and hr makes you great at your job. but that don't make you a rock star. ted! ted! ted! oh ted in finance. you're a rock star! hey liz in hr? can you do this? unless you work with an actual rock star. you are a rock star! thank you! who's the new guy? hi, i'm ozwald. hello ozwald. give it up for pam. pam, you are a rock- [silence] i wasn't going to say it. ♪♪ i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. life is for living. let's partner for all of it. i'm so glad we did this.

edward jones your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

crypto continues to get a boost. bitcoin above 30 k, up almost 15% this week on pace for the best week since march amid a surge in bullish behavior on the street names like blackrock, wisdom tree and invesco joining the etf rush filing for new bitcoin funds and the fed chair yesterday addressing regulation in front of lawmakers on the hill saying that crypto currency like stable coins have staying power. argued, quote, we do see payment stable coins as a form of economy and in all advanced economies the ultimate source of credibility in money is the central bank we believe it would be appropriate to have a robust federal role in what happens in stable coins going forward best first half for bitcoin in four years

going back to 2019. >> if you look at the flows it's coming from retail retail over institutional buying early here in july and really since march since the svb failures still to come, speaking of, financials seeing their biggest inflows in ten weeks next week shaping up to be a moment for the banks and regulation we'll explain. a quick programming note as we head to break, don't miss another chance to catch cnbc's documentary "making of the meme king," an in-depth look at the mysterious and sometimes controversial entrepreneur turned activist investor ryan cohen that will air tonight at 6:00 p.m. here on cnbc wee ckn mont'rba ia me a third kid. what if she likes playing golf? it's expensive. we're outlawing golf. wait. can i still play? since we work with emower, we don't have to worry about planning for a third kid. you can still play golf... sometimes. take control of your financial future to empower what's next.

this is the all new, all electric lucid air. a car that goes as far as it does fast. as sleek as it is... spacious. as smart... as it is beautiful. introducing the lucid air. experience the best. ♪

welcome back to "squawk on the street." i'm pippa stevens with your news update the critical stretch of i-95 that collapsed in philadelphia less than two weeks ago is reopening today.

that is far ahead of the original months long timeline. traffic will travel over three temporary lanes as crews rebuild the main portion of the overpass it's estimated around 160,000 vehicles drive this stretch of i-95 every day new charges today against the weapons supervisor facing an involuntary manslaughter charge in the deadly set shooting during the filming of "rust. hannah gutierrez-reed facing an evidence tampering charge after prosecutors accused her of passing drugs to someone else following the shooting reed's lawyer calls the new charge retall torre and vindictive she's the sole remaining defendant after prosecutors dropped a charge in april against actor alec baldwin union workers at more than 150 starbucks locations across the country are planning to go on strike over the next week and argue the company is banning pride displays in some of its u.s. stores after brands including target and bud light

faced backlash for their own campaigns. starbucks denies their claims. sara, back to you. >> thank you we're here about an hour into the trading day and it's down 181 on the dow. let's get to bob pisani with more on what's moving. >> higher rates, sticky inflation. you know, you summarized it well as you always do early on. that's what we're dealing with the sectors, it's become defensive, health care, holding up a little better, that's nice to see consumer discretionary, a little bit better, consumer staples semiconductor topped out last week copper miners, a good example of the concerns about slower global growth on higher inflation potentially, higher rates, copper miners, weaker today. consumer discretionary down, has held up well because a few subsectors are holding up. home builders, new highs today,

pulte, horton, lennar. the retailers are starting to roll over lowe's was higher last week the main issue concerns about higher rates because of sticky inflation. a good one to look at, the short-term treasuries here for one of the big etfs. the prices have been moving down towards the later part of the month and that's been putting upward pressure on yields. that's the main issue, putting pressure on rate sensitive sectors. the reits under pressure a lot this week, assets and federal reality and apartments and retail sectors, public storage is flat. not all sectors in the reit world are under pressure right now. finally i want to note, big day, liquidity event, the russell rebalancing, the annual rebalancing of the russell indexes. a competitor to the s&p 500. we had to relbalance it last week $12 trillion to the russell

index, a lot of money moves around market cap weighted changes here and some stocks in the russell 2000 go to the russell 1,000 and back and forth, so this is one of the big trading days of the year here. winners in the small cap russell 2000 move in to the big cap russell 1,000. tech names are increasing their weighting. we know how tech has moved so far this year. and the value players, meta, netflix, alphabet, they were value stocks in the russell value. they're now going to growth. guys, you got these big cap names up so much this year once again, upward pressure because those who are indexed are going to rebalance this happens once a year at 4:00 remember the name of the game, don't move prices. you're going to have huge volumes. they don't want anybody screaming. the investor relations department and microsoft screaming at one of the exchanges, the nasdaq or the nyse why did microsoft move 3% in the close. they want a lot of volume. if you want to move a lot of

stock, you have hundreds thousand shares of pfizer or whatever to move around, this is the time to do it, one of the last significant liquidity events of the -- just before the summer we'll have an options next week expiration, but this is the chance for fund managers who need to get stock moved around, this is where you do it. you don't move the prices. i'll be here at 4:00 watching hopefully not put up any big names that are down 2 or 3% because of liquidity imbalances. >> it's interesting tech has rallied. you put up the year to date returns as yields have risen sharply again. the story yesterday yields were up in the session and tech up 4.75 now on the 2-year note yield. that hasn't necessarily been the pattern. >> you want to watch when he start breaking out 4.8 on the 2-year where you see the technicians starting to scream 5.2, 5.3 on the one-year and you already see, the smh, semiconductor etf, as it rolled

over last week, it's down 2, 3% already. some of the big material names have rolled over a little bit as well these are small numbers, but if we continue to keep -- you had it, watch what's going on with the 2-year above 4.8% you will see people screaming pretty clearly >> bob, thanks. >> okay. >> bob pisani. bank stocks struggling to recover from march's financial turmoil and next week could bring more headwinds leslie picker joins us on what's ahead for the banks. >> david, yeah, the prospect of additional regulation has kept bank stocks in essentially a holding pattern recently and this summer is expected to bring some clarity starting with next week's stress test on wednesday, the fed will release results which detail the financial resilience of larger banks by estimating bank losses under a hypothetical recession scenario these results help the fed set capital requirements so next friday, two days later, we're expecting to hear from each of

the 23 banks individually about how these results informed their buyback and dividend plans but management teams specifically those at super regionals may be more conservative with capital return because there are still two more regulatory actions expected this summer another one of these is revised guidance on bassle 3 only banks with $250 billion or more in assets are subject to additional capital requirements but then yesterday the chairman of the fdic said in a speech that silicon valley bank debacle proved that smaller banks can pose financial stability risks and regulators are considering whether to apply the new basel rule with assets over $100 billion. lastly fed vice chair michael barr reviewing the rules that apply to banks with $100 million or more in assets, specifically as they pertain to interest rate risk, liquidity risk and compensation incentives. wells fargo said in a note today

that all three regulatory waves, as he calls them, could hurt eps at the largest institutions by up to 10% and as much as 25% at the bigger regional firms, although most of these are expected to kind of take several years to really work their way through the system guys >> yeah. although, leslie, they're already under some pressure, significant pressure, just on both sides of the business we've talked about yesterday the fed chair also did talk a bit about commercial real estate exposure, particularly at some of the smaller banks. you know, it comes up a lot. i know it does in your coverage. what are sort of the risks there to the regionals and/or smaller banks in terms of their cre portfolios >> it's great point and commercial real estate is actually a factor in the stress tests next that's part of the hypothetical scenario you talk to bank executives and analysts it's getting to be kind of difficult to loop commercial real estate into kind of one nice tidy bow as being a risk for certain banks. they're now kind of looking at

things in buckets. what type of commercial real estate there are areas that are doing quite fine data centers are okay. multifamily housing is okay. but, you know, if you look at certain areas where the return to work trend hasn't been quite as vibrant, certain cities in chicago and new york and certain parts of those cities, that's where you see more distress coming in. so it's becoming a little bit more difficult, especially as an analyst or an investor, you can't just kind of say oh, they have a ton of commercial real estate exposure and we're going to sell that stock you have to kind of really dig between the lines here to look at exactly what that exposure entails. >> yeah. i know the cover of "business-week" is commercial real estate is, quote, getting scary. piper they say in time, we believe more folks will realize that companies can't reduce their space if everyone is in tuesday to thursday because that's enough time where people are going to want their own work space and they think office might be doing better than people think. >> it's kind of remarkable too

the lag we've seen it's been no secret over the last three years that, you know, there were changes just to the way that people were working and, obviously, there are long leases in this area and certain ones roll off over time. but, you know, as we kind of look ahead to what this regulation means for commercial real estate broadly, if you do tighten the capital rules it could alter the way that these banks lend and the way that they kind of think about the specific areas and the risks and the return to work and so what does that mean? what do cities look like at the end of this? what do smaller towns in america, a lot of regionals they're that's their bread and butter lending to smaller pockets of the country, and so it will have a knock-on effect not just to the companies that are looking to borrow, but also, the just makeup of the overall united states and the picture in the cities. >> leslie, when i was thinking about what you were saying about new regulations and higher capital and stricter capital requirements, you have to be aware about the downside risk to

the commeconomy right now whichs facing pressures about credit tightening and availability. won't stricter regulations make that worst it's a fine line to cross where we need banks to be doing their job. >> it's a great point and something fed chair powell brought up yesterday, that there is a fine line between changing the capital rules and then making sure that it doesn't cause banks to restrict their spending so much that it, you know, kind of has this perpetuating effect on the economy. so what those lines entail i think are what investors are looking for clarity on not just bank investors, these are broader investors as well, because the banking system, of course, has the ability to, you know -- we're already seeing a credit crunch taking place the extent of that remains to be seen throughout the rest of 2023 >> good discussion talk to you soon leslie picker talking commercial real estate. still to come, hunting for yield. some of the top dividend plays in that market when we're back

in two

welcome back to "squawk on the street." we continue our series focusing on where to find yield in this market our next guest highlighting some of his top picks in the reits. john kim joins us now. john, we were just wondering coming off a conversation, commercial real estate, some of the pain in office, would you go into one of these office reits like an sl green or boston properties right now would you buy it the. >> going to stick your neck out to a office right now but if you're a value investor there's a lot of value in office there was a report out of jll yesterday, the bottom 30% of office assets accounts for 90% of the vacancy in the market the trick is to be in the top 70% of the market. companies like bxp have a lot of assets in that. >> you like them they're among your top picks >> yeah. >> dividends are high?

yield? >> bxp's dividend yield is 7.5%, xo green is over 10% there's a risk that green cuts at some point. it will not happen for another year 7.5% is very solid. >> it's going to take a while, though, isn't it you know for sort of the confidence to be regained even if the assets, as you say, are stronger than may be perceived >> office has cyclical and secular headwinds. you can make the case that secular part is starting to turn a little bit when looking at citigroup and google saying part of your performance reviews you will be your office attendance, on a cyclical basis companies are still downsizing and taking less space and still a lot of headway over the next couple years that's interesting to watch over the near term. >> how much does it matter by municipality or downtown area? >> yeah. i mean, look at new york new york is back and if you walk around midtown, not today, but

midtown is back. things are busy. i think that, you know, saying 60% occupancy on the busiest days, that's a little bit understated, but it's back and it's better than most other markets. >> you don't have a lot of job growth, though you have large technology companies cutting back the alphabets of the world that have taken so much space in new york or meta is that a concern? >> it is a concern i mean, they've taken a lot of space. they have layoffs. but when you look at what happened in austin, amazon took more space in austin because they're bringing back people and don't have enough space for all the office workers that's not every market. that's not every company it's an interesting tidbit and see if that's a trend. >> what about industrial reits is that a safer spot with high yield? >> industrial is safe. yields not as high we like stag because the yield is higher at 4.2%. the mark to market on these portfolios is strong

for stag it's 25 to 30%. company like pro logic it's in the mid 60% range. market rents don't have to move. >> why is industrial so much stronger in a time when we are seeing a downturn in many parts of the economy >> there was just a lot of supply chain issues that need to be need to be reconfigured that created a lot of demand, and cvacancy rates in industria are 2 to 3%. >> risk if rates move higher. >> we are cautious on reads, higher interest rates, slowing economy is not great for the sector there is a lot of value in the sector, some names trading very discounted prices right now. and if you look next three to five years supply is really going to come down a lot because of higher construction costs and higher interest rates. once the economy comes back the fundamentals are so positive for rates. >> john, good to get a deep dive there into the rate world. john kim, appreciate it. still ahead, indian prime

minister modi meeting with a host of executives s&p under pressure here, down about .6 of 1%. addi tthloesorhengo e ss f t week 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. at pnc bank, get $10 off $50 at petco, you can find us in big cities and small towns across the us, where our focus is to always support the people who live and work there. because you call these communities home, and we do too. pnc bank. ♪

♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ what if we live to 100. i don't want to outlive our money. i keep eating all these chia seeds. i could live to be 100. we work with empower, even if we do live to 100 we don't have to worry. eh, not worried. take control of your financial future to empower what's next.

the indian prime minister is meeting with a number of u.s. technology executives at the white house this hour, let's get over the seema mody with the story for us. >> the ceos of apple, google, microsoft and chat a.i., sam altman and others are inside the white house right now with prime minister modi along with jake sullivan, including strengthen supply chains, distancing their operations from china, improving infrastructure, and incentivizing india to work with the u.s. on artificial intelligence, no doubt a priority for sam altman, and google's -- expansion is part of the discussion as well general catalyst -- telling us before entering this meeting that he's hoping to use the round table to align on technology transfer rules with india, adding, quote, we are in a digital cold war with china and this approach will

ultimately foster an atmosphere of increased cooperation so, hopes are high, we'll have to see what type of solutions they also offer, when it comes to some of the challenges these companies are facing on the ground, david. >> yeah, of course an important market for them as well. think apple for example, and manufacturing, and all the iphones they hope to sell in india. seema, another story you've been following close for us, 3 m reaching that settlement for pfas, at least with certain cities, give us an update on your reporting and where things stand with that company in the various litigation against it. >> well, david, no doubt the settlement is seen as good news, a step in the right direction as the ceo alluded to the press release last night as many wall street investors and analysts are pointed out this morning, the settlement only covers a subset of the legal liabilities that 3m is facing in regards to pfas, doesn't cover personal injury claims, nor the growing number of state attorney generals that have also launched lawsuits

against 3m due to toxic chemicals. so, still need clarity on that front, that's one of the reasons you're not seeing the stock pop as much as you would expect because the pfas risk is still out there, waiting for more clarity on whether this gets resolved or another settlement potentially in the cards, david. >> well, you've also got the combat arms and then the question, the larger question of the financial wherewithal of the company to withstand all of these settlements, whether it may have to cut its dividend what are you hearing about that? >> there's been some analysts talking about whether the company has to cut the dividend. it's a 6% yield, a dividend play for a lot of investors out there. one thing that will help the company, which is the 2024 # spinoff of the health care division that's expected to generate a lot of cash, in the billions, david. >> in the billions, okay, seema, we know you'll be following it closely, an important moment, one of the larger settlements we've seen from 3m, seema mody

at the white house covering the meeting with the indian prime minister. the market, down 1% on the nasdaq, and .75 on the s&p, all of the mega cap tech names are in the red that i see, apple again still at a $2.92 trillion market value mentioned it earlier, of course, given tim cook's attendance at the white house with those meetings. "squawk on the street" straight ahead for you, don't go anywhere meets bold new thinking. ♪♪ at 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley.

welcome to another hour of "squawk on the street," live on the floor of the new york stock exchange, i'm carl quintanilla with sara eisen, setting the agenda, famed economist, david rosenberg, why he says investors are coming around to the bubble that's been created and the one investment he says will give you returns and let you sleep at night. >> plus, new brand ceo, chris peterson, first interview since taking the reins, the stock is down 40% can he turn it around and. norfolk southern's ceo, the company continues to recover four months after the east palestine train derailment and costs rise and volumes drop. bu