as the market cap approaches $3 trillion it is thursday, june 29th. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm melissa leealongside joe kernen becky and andrew are off today >> it is not a grimace it is sunshine is streaming in to the studio. everybody is happy mac is happy >> i'm happy to be here. >> you are here tomorrow, too. >> and monday. >> i didn't know about monday. >> best three days of my life. >> again 34 seconds into the show >> you started it.

>> you are serious i'm serious. i'm happy to see you >> i'm happy to be here. >> we better get going. >> let's look at equity futures. higher here. dow looking to open up 74 points s&p looking to add 10. nasdaq is opening higher at 47 here is where the indices stand. dow up 1.75% for q2. s&p up 6.5%. nasdaq up 11%. year to date, the dow up 2%. s&p is up 14%. nasdaq is up nearly 30%. treasury yields. 100 basis points on the 2/10 >> thank you, melissa. we will get to all of the important things, but as we were talking, we will talk about the perfect game and you will be

finding out about all of these things at the same time as viewers which is good. you will have the same excitement and newness of hearing about it when we talk about it there are hhaven't been many. if you watch the tape from yesterday, as it got closer and closer, i watched it and on the final play, i got a little -- the greatest thing 27 batters and retire every one p of of them. the yankees. amazing. amazing. 99 pitches 72 is strikes. great defensive plays by the team they scored runs 11-0 very cool. it is oakland. every team in the major leagues is great they are they have great hitters. it is a feat fourth time it happened for a

yankee for the bad news, flight disruption 1,200 flights canceled yesterday. 7,000 flights delayed. horrible sitting around it could be worse. 1% problem united airlines canceled the most flights among airlines. it said it was on track to restore operations for the holidays after the fifth straight day of thunderstorms which we were aware of near the new jersey hub the runway was closed 10 hours at the charlotte airport in north carolina after a delta airlines flight was forced to land without nose gear all 104 people were safely removed from the plane and taken by bus to the terminal a passenger described the landing to nbc news as absolutely perfect and praised the crew they are great these guys and gals. we will talk more about the

flight delays with the former acting faa chief billy nolen in the 8:00 hour. president biden addresses the record in a speech yesterday. he outlined his progress as the election of 2024 approaches. >> not the top down. the three fundamental changes we decided to make with the help of congress first, smart investment in america. second, educating workers to grow the middle class. third, promoting competition to lower cost to help small businesses >> the president criticized the policies of his predecessor former president donald trump. >> trickle down failed america it blew up the deficit it weakened our infrastructure

it stripped the dignity, pride and hope out of communities one after another. >> this will be interesting to see if he is able to turn around the perception of the american public >> 33% approval on handling of the economy. we've had a series of guests on this week rolling this out jared bernstein. they are trying hard and they need to do it. supposedly people base their vote on the kind of economy you have in may and june of the election year. he has 10 or 11 months to turn it around. numbers are under water right now. in terms of something that occurred to me that he said. bidenomics is the opposite of

reaganomics. i agree with that 100% >> that reaganomics worked >> in ushering the greatest prosperity we do have low unemplunemploymet the same that we had at the end of the trump administration. the pandemic and all 13 million jobs came back here is what i think i think the policies that redistribute end up not working well so the fed stays at zero because the policies are so bad and everybody who owns assets benefits >> at zero >> yeah. the income inequality will go up trickle down the only choice we have is to grow the pie split up a smaller pie more equally. that is what president obama said

there is nothing i can do about the pie itself i'll make sure it is more equitable. that is wrong. >> i think it is how we look at this and see if it works will this work in terms of changing americans' minds for the election the economy is what it is all about when people go to the polls. if they think that biden's policies won't work and if these are sound bites and they are convincing enough, that may be enough. >> people know how they feel that is the point that jared bernstein said you can tell people they are doing great and things are great until you are blue in the face if they see their paycheck -- >> that's the problem. inflation. >> 24 straight months of lower real wages 24 straight months then finally in may and june okay, there was the putin price hike prices were already going up

they were much higher before putin invaded ukraine. taking credit for bringing back the jobs after the pandemic. the last six months of 2020, we averaged 800,000 payrolls every period it was happening you threw $1.9 trillion on top of that and goods were scarce and everything cost more. >> the inflation reduction act >> right. >> signed right after we saw peak inflation >> jared called it the investment reduction act i started laughing that's a better name bidenomics similar to carteromics which reagan reversed. let's get to the results of the stress test. i can't wait all 23 u.s. banks included passed the severe recession

scenario with the miniuimum capital levels banks are expected to disclose buybacks tomorrow after the closes of regular tradering. speaking in madrid, jay powell said the bank failures under scored need for strong buffers to make sure the system is resilient. shares of micron are higher. it is forecasting current sales as high as $4.1 billion. above the estimate of $3.9 billion. in a statement, the company's ceo said he believes in memory industry passed through the trough in revenue and expects margins to improve as a supply/demand balance is res restored micron is projecting a loss of

$1.12 per share for the quarter. for whatever reason, the stock target is pretty good. almost back to 70 now. news alert on amazon bloomberg reporting the ftc is planning to file another anti-trust suit. it is alleging amazon is using the power to reward merchants that uses the warehousing and shipping three cases have been filed against amazon coming up, apple is nearing a record high. we will talk to jeff currie in the 7:00 hour. you are watching "squawk box" on bc

the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley.

we moved out of the city so our little sophie ycould appreciate nature.e market from wherever you are. 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.

apple shares close at a record high yesterday. $189.25. the company's market cap is nearing $3 trillion. the stock needs to close at or above $197.30 to hit that level. joining us is a cnbc contributor and most known for her ap appearances on "fast money." >> yes >> groundbreaking show at 5:00

p.m. 5:00 p.m >> don't make fun of it, joe >> i'm not >> welcome, karen. good to see you 12 hours later. >> good to see you, melissa. >> let's start with apple with the record close you trimmed recently >> i did i had to you know, the whole faang portfolio, which has been a great year and it gets big enough and i have to shift a bit. when i sold it, i promise you, it will go higher. if for no other reason i did sell which seems like a likely catalyst it is still an extraordinary company. i don't know $3 trillion i don't know that matters really i also feel it is a little bit expensive. i can find other places to go. >> you mentioned the faang portfolio growing. meta is a doubleso far this year why do you choose apple versus

other parts? >> over meta or alphabet it is more expensive i had to trim microsoft. expensive. i think the risk/reward has changed a bit for apple and microsoft. more than the google and meta at these prices. >> microsoft has a.i it has a.i you are a believer >> i am a believer in a.i., absolutely i'm concerned about how the money actually gets made to me, it is clear the money gets made by the picks and shovels of a.i you have to go to nvidia for that although it is the thing i would say this is expensive, i don't believe that we have seen what the company can do we talk about the last quarter with the changes in guidance revenue was extraordinary. i really believe and said it at the time they are sand bagging

they will do more. if you can lift your revenue and you have clarity on $11 billion, why would you pick that unless you are certain you can do better. >> and the export bans are not going to impact the business, that tells you there was pad embedded in the forecast take away the orders from china and they will still hit it >> right still hit it and exceed it you know, one could argue people are getting in front of this and double buying so they don't have supply issues. i think we are too early in that there is time for a lot of demand i own a stock that expensive >> let's talk banks. jpmorgan chase in particular you own others >> i do. >> any surprises with the stress test >> not really. the only surprise would have been somebody not passing. we still have some more uncertainty about what regulatory capital requirements

will look like, but i like the banks a lot here i feel like the uncertainty of the capital requirements is more damaging to the stocks than whatever requirements would be people are concerned they would have to reduce the buy babacks. we have seen them in 2020 do that and jpmorgan chase stop buyback after the first quarter of 2022. what happens is they build more capital and buybacks stock at 10x earnings and 3% yield has a lot of uncertainty priced in. >> they have to keep on their books doesn't change their view? >> not really. do they grow or are they already there or do they have to grow more to get there? >> right citi was deemed as the least resilient in the scenario.

you don't own citi, do you >> i don't own citi of i do own bank of america it has not been great. i would have thought it would have done better jpmorgan chase is -- especially after silicon valley bank and the first republic which they played masterfully >> you discovered her? >> she predated me >> i watch with. i just don't know how you do it. >> do what >> i wish there was a way you could have a podcast where you show how she does it >> wait a minute >> what else can we wish for right now? you are good at it >> my daughter is killing it, too. >> your daughter is fantastic. >> she is 23 she would benefit from this you are talking to women who are

killing it you say how it happens this is new. three days >> three days ago. "how does does it. i love talking to women. i meet a lot of interesting women. i have these dinner parties at my house where i invite different women from all over jobs and experiences i just love to hear how they got here all of them had a pivot in the road that we weren't expecting or they weren't expecting. all of them had good successor great success and failure as well that's what i want to know >> i'll show you both. my wife's company, too. >> okay. good >> i have two of them in my family both more successful by a long shot than i am >> my first guest is melissa lee. >> no way? >> yeah. >> has it run? >> yeah.

>> the podcast is something you can listen to any time >> audio only? >> yes >> i hear there are podcasts that are video >> finally. >> never listened to a podcast. >> it is scary >> this might be my first. >> all right >> karen >> thank you thanks, mel. i will see you tonight >> i love it >> i enjoyed that. mary told me that. coming up, an update on the collectibles market. what sold and didn't sell at auction this weekend "squawk box" will be right back. people often tell me, marty, you are a pioneer on wall street i would say i don't see myself that way i do see myself as somebody who is just myself and i always have been that. when i first came out in my

interview in 1993, i came out in that interview just because that's how i did it and i was out in silicon valley. i saw no point going back into the closet i would say just authenticity of the th-- authenticity. is a lot of wasted time to pretend to be something you are not.

i remember being on aau trips, high school games. my mom would always say, "you need to fuel the body and you need salt."

i'm like, "why do i need salt? like, who is going to do that?" she literally would make me rip open a pack of salt, pour it in my hand, and i would, like, lick my hand. sure enough, i would always be the kid not cramping, i would always be the kid energized, ready to go. fast forward 20 years and i go from eating salt out of my palm to a drinking lmnt. how's the chicken? the prawns are delicious. oh, i have a shellfish allergy. one prawn. very good. did i say chicken wrong? tired of people not listening to what you want? it's truffle season! ah that's okay... never enough truffles. how much are they? it's a lot. oh okay - i'm good, that - it's like a priceless piece of art. enjoy. or when they sell you what they want? yeah. the more we understand you, the better we can help you. that's what u.s. bank is for. huge relief. yeah... ♪ this is ge aerospace, advancing flight for future generations.

♪ welcome to a new era of flight. update on the story we told you last week. we spoke to an executive from the auction house selling the tv

and movie props including the dress from princess leia bidding ended yesterday at 9 $975,000 it was below the minimum price the dress went unsold. the highest bidder is trying to negotiate agreement privately. the baseball glove from "field of dreams" fetches for $87,000 and the costume from "gladiator" sold for $125,000. i think this was doing better than the recent ntf auctions i have a picture of the got

gladiator. i never understood those drawings it's a cute drawing. >> you need a plasma display screen to show it in your home >> can't you draw whatever i'm not going to mention any of the actual things because they get mad. didn't you produce as many as you want >> what constitutes an original if it is digital >> right i guess artist same with artists, too once they're dead. no more campbell's soup cans. >> right at the aspen ideas festival, andrew ross sorkin spoke with charlie charf about the strengt of the consumer. >> i think overall the banks will do just fine. the other thing you have to remember is real estate will

play out over a multi-year period of time banks are still earning plenty of money there doesn't mean there will be one bank with too much exposure in whatever area they're in. regional banks very broad based businesses it is not commercial real estate which is one thing they do it is not sized generally in a way that should bring about the fear that areyou are describing >> nbc universal is involved in the aspen ideas festival. coming up, the record for the platform in the 2024 election for president biden as we head to break, here is a ses d t the s&p winneran lors >> announcer: executive edge is

sponsored by at&t business at&t 5g is fast, reliable and secure [due at ta n 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. the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it)

start today at godaddy.com

good morning

welcome back to "squawk box" lift from the nasdaq market site in times square. the dow is looking to add 100. 97 points. the supreme court is expected to hand out a new round of opinions this morning among the decisions is whether president biden can proceed with the student loan forgiveness plan borrowers could have $20,000 for forgiven another key decision, justices could put an end to affirmative action for colleges and universities and another case of and t anti-discrimination laws the case involves a graphic artists who wants to design wedding web sites, but rejects same-sex couples.

and breaking down the impact of the 2024 election cycle as president biden speaks out >> our economy was reeling supply chains were broken. millions unemployed. hundreds of thousands of businesses on the verge of closing. today, u.s. as the highest economic growth rate leading the world economies since the pandemic highest in the world >> joining us now is dan clifton at exstrategas. the fed has had to normalize rates for a long time and the economy has hung in there. the labor markets held up really well inflation has come down. there are plenty of good things happening. if i were advising the

president, i might take a different tactic there are times when people are shaking their head saying we know that that's a distortion or patently false when real wages have been rising it is not true you take credit for the 13 million jobs 13 million we lost, basically. when you add it all up, you are at 33% approval rating for the economy. will this move the needle? will this help, dan? >> it is the beginning of the process, joe we are 16 months out from the election we count yesterday as the beginning of the 16-month process. the president is laying out his case for why he should be reelected. in all fairness to the president, as inflation has come down and wages have grown, real incomes have gotten better the last few months. this allows the president with more confidence to go out and say the economy is getting better joe, the reason why he has to tell you that is because voters

are not feeling it if you look the consumer confidence data released this week, a strong number for current conditions expectations remain weak for the future the president is laying out his case now for why he should be reelected and why his policies are better and why people's lives are better that allows him to contrast whoever the republican candidate is going to be we view this as part of the process. he has a long way to go of the it is likely the labor market will soften here that will make his challengies greater for 2024 >> the initiatives we talk about and we haven't done much of the infrastructure we know it is coming you can't really credit that with the good things happening the chips act. people on both sides of the aisle. it was bipartisan. there are people who think it is odd for the government to pick favorite industries. the transition to clean energy

that may or may not be wise if it takes away capital from what we need in hydro carbon. they may end up paying they haven't played into where we are what pro growth initiative does the biden administration pass that do account for the strong economy that we have where is it? it seems -- i don't know what you point to here oerhere >> the president wants to say it is a future boom in the united states this doesn't come out in 2025 and 2026 this is different from handing out checks where consumers feel that what they are pointing to is the rise of manufacturing and investment capping in cap x you have been seeing it is hard to connect the two. the famous chart sent around washington this week which takes

the consumer price inflation and puts the passage of the inflation reduction act which is at the same time we argue inflation is coming down because the money side is contracting and that leads inflation. that is the first time since the 1940s the money supply is contracting. you will get inflation down. the risk is as the inflation ko comes down, it reduces jobs and the president is saying how great the economy is and it could falter there is a risk here clearly the economy is the dominant factor for the presidents to get reelected. every p preresident who avoided recession before election, has been reelected it is binary that is what they are trying to overcome >> the comment about -- if you look at an employment chart and see the pandemic and see it come back it took a long time to get back

to where we were >> yup. >> he came in office of january of 2021. we already had seen six straight months of 800,000 plus payroll growth he wasn't in office. we weren't in the throes of the pan pandemic we were still feeling it that is the thing most people probably think that is disin disingenuous >> joe, we follow this a lot closer than the average voter which gets their kid to swim class. the clip you showed at the beginning of this talking about how bad things were when he came into office is just not true we had a vaccine we were on the verge of reopening. the fed and congress made a decision that they were going to continue $2 trillion of new spending they enacted and continued to buy bonds for another year later

that is one of the greatest economic policy errors over the last 100 years now we have to rid the inflation out of the system. the president has been focused on the second part of the agenda the infrastructure and clean energy and chips voters don't feel it directly, but they say that sounds great you read the wall street journal today and much of the chinese spy balloon had foreign equipment on it. that is producing to protect the supply chains. they will play right up that national security alliance as part of the economic policy agenda as well >> all right i see a lot of conjecture of what will happen on both sides and both parties of the eventual nominee for 2024 is biden going to be the no nominee? you say the chances are what do the same for former president trump.

>> joe, we have two leaning candidates, republican and democrats, with legal issues hanging over their head. >> both. >> both. exactly. i think the support is softer than people anticipate it will manifest differently joe biden wants to be the nominee. rfk jr. looks just like pat buy ca -- buchanan i think rfk can get 10% to 20% i think trump is softer than people anticipate. it is controversial to say that. if you see movement where biden starts to have more issues develop, the party may get more practical. if the party choosing somebody other than trump, the

probability of winning the election will go up. the reason this is important for investors is all of the trump tax cuts on individuals expiring at the end of 2025 whoever wins not only the presidency, but senate and house, will have an outside impact on the tax code and it will be a very big two years for investors. first, who wins the election and then, two, how does the tax code get restructured >> the pushups was this photoshopped? >> i don't think so. it looked like it. this is what is going on. >> did you see it? >> this is what is going on. >> rfk they are all good-looking. i will say that. historically that is unbelievable that shot of him doing that. that's neither here nor there. i thought it was photoshopped. he could run for governor of california he looks like schwarzenegger on

that shot. >> that's the talk the talk -- >> yeah. >> that's the talk biden doesn't get in and newsom gets in. the desantis and newsom race that is an election of ideas >> okay. tv wife. cheryl >> dan clifton, good to have you on every time we have an election, there is another one we talk about the day after. in full election season already. we just had the midterm. >> we also look ahead. >> dan clifton. coming up, highlights from the testimony yesterday from the ceos of microsoft and activision. plus, a busy holiday weekend expected to bring temporarilies. we speak to former faa acting administrator billy nolen. "squawk box" will be right back.

>> announcer: currency check is sponsored by interactive broke s. the best informed brokers choose interactive brokers.

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.

the court thhearing that cod decide the fate of microsoft is nearing an end

we have steve kovach with more >> they were testifying the $69 billion deal and the judge will likely seal the fate with microsoft and activision saying they may have banned it if the judge grandsts the ftc request ftk ftc was showing microsoft was a player in the cloud world. in the comments, nadella boasted about the gains in the u.s. and can be today and europe. ftc showing an email where nadella wanted to use over opportunity to make cloud streaming more mainstream. it is best for microsoft in the long run that backs up the ftc argument that microsoft is a strong competitive to playstation and plans to turn cloud gaming into the next platform.

asking about exclusive games and nadella was against, but has to do with xbox nadella saying the fight over exclusives for each platform saying i have no love for that world. if it were up to him, he would exclude games on consoles all together under eoath, he expects to keep call of duty and kotick says he doesn't believe cloud gaming is good for activision it sold better than he thought it would today is the final day in the hearing and the judge will decide whether or not to grant the ftc request for the block on the deal the clock is ticking the deadline is july 18th. not to mention what is going on in the uk. >> the uk wants to block the

deal the eurozone is okay >> they accepted it. whatever happens here will likely decide the legality in the united states. it was going to go to a different court. ftc alleges that microsoft will close the transaction no matter what by the july 18th date microsoft cheered. when i talked to the microsoft side, they were giddy to get in front of the federal judge you can see it in the testimony. >> break-up fee is $3 billion? >> they may have to renegotiate to extend another month to work out this stuff >> this is weird we're now looking at something the eu passed. >> they're strict. >> it shows you where we are here it is not a fertile ground of mergers of any kind. >> zoom out, joe the eu passed huge tech laws, including one on a.i. recently

they are regulating u.s. companies -- >> how can this pass it shows you how restrictive we are. the president last night, the third leg of the tool, was competition. i think they think preventing mergers in the elizabeth warren viewpoint, anything that merges is a zero sum game and you rational 00 i00 -- ationalizes competition. you can't let -- you don't want oligopoly. >> the legal theory is reviewed in court this creates a chilling effect for sure. >> on mergers. >> correct. >> do mergers hurt competition >> in tech >> has anyone been hurt in tech? has your 85 inch tv for $200

>> an argument made for instagram. >> thank you, steve. >> what is that? >> like tiktok >> he knows that >> i haven't been on either. coming up, july july 4th trs expected to hit record levels, airports have been hit hard over the past week by storms and staffing shortages we'll talk travel after the break. "squawk box" coming right back

fourth of july travel is expected to reach record numbers this year despite rising costs aaa is projecting more than 51 million travelers will take a trip by car or plane that tops the previous record of 49 million in 2019 the surge comes as airlines have

been slammed by storms and staffing shortages joining us, haley bird hopper lead economist good to have you with us and the delays seem to keep coming here as we head into this weekend. i'm wondering what your forecast outlook will be. the airlines, the stocks themselves are trading as if nothing is going on, even though consumer anger right now is high >> what we're seeing right now is really the result of bad weather, which i hate to say is good news for travelers. these are unexpected weather events, not technical breakdowns, not crowding on the tarmac so the good news is hopefully once this weather clears up fourth of july weekend, disruptions will also clear up we are expecting all this bad weather to have a pretty large impact today and tomorrow. we're forecasting 3.7 million americans will depart for fourth of july getaways for today and

tomorrow with major hubs like new york city already impacted by delays and cancellations. >> can you give us a sense of what you're seeing in terms of how they choose to travel and are they choosing any tradedowns we're hearing repeatedly from retailers that consumers are making choices that indicate a tradedown mentality right now. are they doing that with travel? >> we're seeing deal-seeking behavior though budgets might be the sam or slightly larger than they were last year or in the previous year, travelers are stretching that further. so rather than taking just one trip, they might be stretching that budget to take two. so there is definitely a lot of deal taking behavior, customers are checking prices about 50% more often from the first search when they booked, so we know there is stress on that wallet, but what we're seeing is users bringing that stress in so they can fit more into that travel budget rather than taking things out or trading down altogether. >> on the hopper, i understand

the consumer can go on and determine when they should buy a ticket or book a car, whether prices are going to go up or prices will come down. has the result mostly been prices will go higher so you better buy now is that sort of the dynamic we're seeing in the travel industry right now >> it depends where you're going. if you're traveling to europe or asia, prices for this summer are already incredibly high. well over $1200 to europe, well over $1800 to asia but on the domestic front, we have seen incredible price relief travelers this fourth of july paying just around $300 per ticket down $100 per ticket or 25% from last year, so domestic travelers are booking much like they did prepandemic, one to two months in advance, getting the lowest prices. those international travelers, if they didn't book three to five months in advance, they're definitely paying a lot more than those travelers who use the app got the recommendation on

the best time to buy but this is something new, coming out of the pandemic people plan vacations more last minute, and it is costing them. >> hayley, great to see you. thank you. >> great to be with you. coming up, three ipos are expected to deliver a $1 billion week for u.s. listings it would be only the fifth time that's happened in more than a year we'll dig in ttohe day's market debuts that's coming up athletes. investment bankers. doctors. business leaders. we see your ambition. your desire to succeed. which is why we are investing in your future. ...empowering the next generation to reach the c-suite and elevating women's golf. because you may not always see yourself in the world, but we see you. we earn your trust. maintain our financial strength and stability. and deliver solutions that meet complex needs.

massmutual. partnering with financial professionals, benefits brokers, and institutions.

♪ "the pursuit of gold" by alex ball ♪ ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) the l'or barista coffee and espresso system. a masterpiece in taste. 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.

good morning jay powell sticking to his script more rate hikes potentially coming we'll find out what it means for the markets as we get ready to close out the first half of the year, with a strong performance, maybe even in the dow today. we'll see. bidenomics versus reaganomics, will the policy pitch work to win voters we'll talk about that. and a report that the u.s. is considering new restrictions on exporting ai chips in response from chipmakers like micron and maybe even more so nvidia as the second hour of "squawk box" begins right now.

good morning and welcome back to "squawk box" here on cnbc, live from the nasdaq market site in times square i'm joe kernen along with melissa lee. andrew and becky are off and you can just wait around here, basically, sitting there until -- >> until later >> yeah. >> that's your seat. it is the same seat. >> mm-hmm. >> but this seat is obviously not the same because i'm here for this, which is a big difference. u.s. equity futures at this hour, as you can see, triple digit gains in the dow hard to hold on to any gains in the premarket session as in yesterday. i think more than a few days where the dow had given back some ground. june was a good month. the first half of the year was

extraordinary. more for the nasdaq, i guess and skeptics pointed out based on a small number of stocks that have done really well, we'll see whether the rest follow suit or whether the leaders come back to the rest of the pack treasuries right now, regardless of how many fed heads talk, whether it is in portugal or wherever, we're still not at 4% on the ten-year, even if they're taking us to 5.5% or 6% supposedly i know the markets don't believe it still don't. >> not at all. let's get to dom chu with a look at this morning's premarket movers. >> good morning. tech sector earnings are helping to fuel the modestly positive sentiment we're seeing premarket this morning micron, the shares right now on the rise to the tune of nearly 4% right now around 100,000 shares of trading volume it was thanks in large part to

higher demand for its products driven by what else, the boom in artificial intelligence related applications the ceo says he believes the memory industry has passed through its trough in terms of revenue. also expects profit margins to improve at the supply demand dynamic in the industry is restored so micron helping to drive some of the positivity in technology. a couple of analyst calls out this morning getting some attention. pfizer down two-thirds of a percent, half a percent. 100,000 shares of volume getting dragged in part by analysts at credit suisse. it was a buy they cut the target price to 40. it was 47. they cited among other things limited drug pipeline catalyst so those shares half a percent to the downside. watching shares of disney down half a percent 40,000 shares of volume. the median theme park giant getting downgraded to sector weight from overweight over at key bank they're looking at things like stalling direct to consumer subscriber growth, tougher path

for espn to gain streaming success and high expectations for the parks business overall disney down one half of 1% and we'll cap things off with a check on occidental petroleum. higher by over a percent now, about a percent. 50,000 shares of volume. stop me if you heard this. warren buffett's berkshire hathaway increasing its stake in the company again in a regulatory filing disclosing the addition of 2.14 million shares that would purchased between june 26th and 28th they paid north of $122 million for that the addition brings berkshire's stake overall, joe, to now over 25% of occidental. so this series of buys continues. seemingly can't get enough of occidental petroleum. >> loves the ceo loves her. loves what is happening there. he's not going to buy the whole thing. i think he's made that clear but he certainly likes it as we can tell you're not going to escape

without -- let me ask, dom, oakland, okay, oakland is not the greatest team, but -- >> okay, i see where you're -- >> guys get paid millions of dollars to do the hardest thing in sports, hit a 100-mile-an-hour fastball after you see an 80 mile an hour, not one guy able to get on base. with my teams, they always walk people they walk people all the time, give them a -- that's the end. i wish we had the audio too. it was unbelievable. >> it was amazing. >> they walk guys all the time this guy didn't -- 27 straight batters retired. >> domingo german. let's say it it was amazing and, first of all, the yankees, i mean, they had their ups and downs all season, but talk about something that really just to hang your hat on, if for nothing else this season, the fact you had that particular game, i

mean, you can say it is against any major league team should be able to get on base at least once whether it is for a hit or -- >> i have money betting on it. they're not as bad as their record would indicate and they're moving anyway, right, to las vegas. and the yankees, 11 runs, not like they didn't, you know, give any help i got a little teary when i watched this, dom. i don't know something about when something -- it is perfect when you seeing some that perfect in sports -- >> it is a beauty. >> 99 pitches. what kills me is when you put a guy out -- in the bottom of the ninth, one-run lead, and the pitcher walks the first guy, and i know they're not trying to to give him a hit, but it is painful to see and not a single walk and some great defensive plays i don't know if you saw those too. it was great >> i guess for me, joe, i've been on an early shift the last couple of days, very early one,

and so i didn't -- i wasn't able to catch the game live i woke up at 2:00 in the morning and checked my social media feeds and saw all of the hoopla, and then i'm going through and cycling through the highlights and everything else and like you said, so i never thought -- i didn't get the same effect that you did because i didn't get to see it live, but -- >> i didn't see it live, but i watched a compilation on espn which had about 10 or 12 plays, some of the ks, some of the strikeouts, the defensive plays and the end with the announcers and just watching the reaction of the yankees awesome. we wasted probably too much time >> so congratulations domingo german, unbelievable, awesome. >> fourth yankee 24th perfect game. but with the new pitch clock, i'm surprised anyone can do it now. the guys are -- they are not comfortable, as comfortable as they used to be going to -- the next guest says this could be the best sweet spot for ipos in a decade

a trio of companies are expected to make their wall street debut. the largest for profit thrift store operator in the u.s. and canada, priced 22 million shares at $18 a share, above the estimated range. kodiak gas services priced 16 million shares at $16 a share. and fidelis insurance is seeking to raise about 300 million at the midpoint of its raise. joining us to discuss, tom sozso soznoff, and a lot of things, air travel, hotels, vacations, there is a lot of pent-up demand, we understand that why would this be a good time for ipos when wrates have gone p 500 basis points it doesn't seem like a great time and hasn't been why is that going to change? >> there is so much speculative demand, and, you know, right now there is not that much stuff to speculate on i think the ipo market has been toxic for so long. i mean, you couldn't find a better time.

if you're thinking about going -- taking a company public, you want to do it when the market is most toxic and right now i don't know why you would want to borrow money at -- do a debt offering with much higher rates i would much rather float stock and especially in the competitive environment, you know, this is the first time companies have had leverage over the, you know, financial service companies. i kind of think it is a great time and probably the best time like you said in the past decade to take a company public right now. you're coming out of a toxic environment into a really healthy speculative market. >> going from famine to feast. we had adina on more than a few times. it has been like a wasteland for ipos >> yeah, the spac, the -- >> that hurts. >> the spac debacle, the spac unwind took the ipo market back about, whatever, five, seven years. and i think at this point now we are finally seeing a lot of demand we're seeing a lot of speculative demand and not

seeing a lot of new products out there. so i think the ipo stuff, especially in the derivative markets place and option side, there is a lot of demand for new products and i think people want to see new companies i also think there is -- it is just a great competitive environment for companies to go public because there is just not that many. >> well, we won't have -- used to be you do a dotcom and for a while it was a biotech acronym is it going -- are we going to see the end of this will be the ai company that comes public, they're going to have ai in the business plan? >> let's hope not. i think that that's exactly what we don't want to see right now i think that -- i think there is a certain group of tech companies that i don't think i the ideal time to go public with i think it is the -- i think if you're really looking atthe group that is probably going to do the best in this ipo market, it is probably going to be a bunch of small caps that have moved around to a really strong free cash flow type of, you

know, type of balance sheet. and i think the market is going to like it so far, in the last few ipos that have come out, the market has been strong behind them. i think that when there is not a lot of stuff and you're coming out of a toxic environment, the market just treats you right it is the pure contrarian play and i like it. >> you're mentioning the speculative nature of the market you can take a look at carvana, up 500% year to date, the increased use in demand for zero data expiration options and you're part of the world i'm wonder, how you gauge where we are in the markets right now with the nasdaq up 30% are we in a speculative fueled bubble right now >> well, melissa, i think that over the last pretty much over the -- since the beginning of the pandemic, i think the market has changed a lot. i think people, the way they perceive trading and investing, everybody has shortened their time frame and i think we saw, you know, throughout the last couple of years, there is a ginormous

speculative demand hitting -- just lying below this market and waiting to pounce on stuff and we just haven't had a lot of stuff to do. there hasn't been a lot of ipos. there haven't been a lot of deals. so the market just has been -- and one of the speculative areas which was digital assets has really just kind of dropped off the map for regulatory reasons i think the marketplace is sitting on a lot of cash it is a very competitive environment right now for companies that want to go public because there is not that many of them. and i just think there is a lot of cash on the sidelines and i think companies for the first time have a lot of leverage over the investment banks >> tom, thanks great to speak to you. tom sosnoff. the nation's banks clearing the stress test hurdle we'll talk about the sector next and then the president rolling out a major piece of his re-election campaign and embracing the term bidenomics. but ll twihe strategy work jon fortt will weigh in. "squawk box" will be right back.

so, you've got the power of xfinity at home. now take it outside 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.

sleepovers just aren't what they used to be. a house full of screens? basically no hiccups? you guys have no idea how good you've got it. how old are you? like, 80? back in my day, it was scary stories and flashlights. we don't get scared. oh, really? mom can see your search history. that's what i thought. introducing the next generation 10g network. only from xfinity. all 23 u.s. banks included in the federal reserve's annual stress test passed the severe recession scenario, with the ability to continue lending operations during a downturn joining us to talk more about the sector, scott seavers at piper sandler. scott, great to see you. >> good morning. thank you for having me. >> it wasn't a surprise that all of them passed i'm wondering if the stress test

makes you feel, you know, any better about the sector overall and its ability to withstand, you know, something sudden because as i understand it, these scenarios are enacted over a nine-quarter period. what we saw in march was something that happened in a much tighter time frame. >> that's right. great question i would say certainly makes us feel better in the near term, but this will be a long road for the group. we'll take everything we can get after a year like we had so far. i thought there were three takeaways. first, you appropriately noted, everybody passed that's a good thing and a victory for the group as a whole. i think if you look at the nuance of it, the universals like bank of america and jpmorgan came out -- the guardrails could go down as a result of the tests. the regionals maybe more of a mixed bag. pnc and m&t did pretty well. names like citizens and capital one, maybe a little bit more of a laggard. that's tougher the real issue is that this is just the first chapter in what

is going to be a longer story with bank capital management, so good start to the story, but in the coming weeks and months, new rules related to bazell three, international capital rules and the fed is conducting its own what it calls a holistic review as well. even though we have lower guardrails today, those are based on current rules which could become moot as we go forward here a victory today, i expect to carry the group higher but still a long road ahead. >> if you had to change an aspect of the stress test, what would that be? what is the concern that you have going forward that has not been addressed with these stress tests? >> a rate rise like we had over the last year, you know, i think that's one of the main criticisms and appropriately so. the fed has been candid in terms of the weaknesses of the tests overall. if i had to guess what will probably do going forward is introduce multiple scenarios into any given year so that the fed can understand how banks and

so that the banks can understand themselves how they might behave under a range of scenarios, so that a perfect world, we could capture some sort of six sigma event like we saw in march of this year and not be surprised we're never going to cover every base, but i think the fed wants to be as broad as possible >> when you look at the large banks, all of them pass, all of them did well, the standout was citi and bank of america is the one in the group that has traded pretty poorly considering, you know, it is still within the ranks of the higher quality sort of banks i'm wondering is that unfair why do you think there is that weakness in bank of america, just a couple of dollars off of its 52-week low. >> so that's a little more challenging. so they bought a lot of securities back when rates were lower and now the securities are in a pretty heavy unrealized loss position. the funding nuance of the stress test this time and why i think we might have trouble with a lasting sustained upward move in the group is that the construct of it allowed for those

unrealized losses for the biggest banks to decrease. the value of their securities improved so, that's a good thing, but it is also a very specific situation and runs completely contrary to what we're seeing in the actual world today, where investors are concerned about upsidedown security portfolios bank of america has a chunk of unrealized losses that they're not going to damage the company or its ability to move forward, but they do put a drag on the company's earnings momentum until the losses sort of work themselves away over a period of time so, you know, it is just a choice that they made and they're living with and dealing with it as we speak. it is certainly an issue for investors. >> all right, scott, great to see you. thank you. >> thanks again. coming up, the president pitching americans on bidenomics, saying his policies are working. >> the economy that grows, the

economy from the middle out and the bottom up instead of the top down when that happens, everybody does well. >> will his pitch win over voters and is it the right move to contrast it with reaganomics we'll hear both sides of the argument after the break we're coming right back. time now for today's aflac trivia question. what do the letters in the nasdaq acronym stand for e sewhthanr en cnbc's "squawk box" continues a hole in your defense; look at the size of that- gaaaaaaaaaaaap!!! is that a goat?! you talkin' about me? gaaaaaaaaaaaap!!! i think this goat is saying “gap.” must be talking about the expenses health insurance doesn't cover. so who's talking about the money aflac pays to help close that gap? gaaaaaaaaaaaap!!! aflac! aflac! gaaaaaaaaaaaap!!! it's about to go down, baby! aflac! aflac! stop that goat! get help with expenses health insurance doesn't cover at aflac.com

now the answer to today's aflac trivia question. what do the letters in the nasdaq acronym stand for the answer, national association of securities dealers automated quotation. president joe biden is in chicago yesterday rolling out a major piece of his re-election campaign pitch he's embracing the term bidenomics and trying to draw a contrast with ronald reagan's reaganomics. can the strategy work? jon fortt is here to weigh in on it >> i can guess how much you love bidenomics but, yes, the bidenomics

approach can absolutely work here's why the 2024 election is going to be won or lost on the economy that's clear and the u.s. economy is in decent shape all things considered unemployment near historic lows, 3.7%, wages are up, inflation is cooling and the market's rebounded. adults give the president no credit though. in a new poll just 34% approve his handling of the economy and that's lower than the 41% who approve of his job performance overall. same trend with democrats. 72% approve of biden's job performance, but 60% on the economy. if he can convnince a few allie, that could give him an assist with independent voters who aren't inspired by the red meat from the culture wars. what is bidenomics he says it is a middle class focus in contrast with reagan supply side approach of cutting taxes and easing regulation.

three main bidenomics pillars. one, investment in infrastructure and manufacturing, two, empowering workers through unions and education, and, three, giving workers financial leverage by banning noncompete -- it can work, joe. >> really. i love -- i love the one positive you were able to come up with. if he can actually convince some of the people in his own party that things are -- if he can even win over guys that are -- guys that are on his side -- >> who want to believe it. if you can sell it to somebody who wants to buy. >> no way he's getting independents and people on the right. >> well, i mean, critics would say that, joe. but on the other hand, on the other hand -- >> this is an on the other hand segment? >> it is that's the problem >> this is what i've been looking forward to on the other hand. >> here it comes the three pillars of bidenomics don't actually explain why he deserves credit for what's going right in the economy and they don't protect biden from what's

most likely to go wrong over the next 16 months but the main ingredient keeping the economy humming in the face of rate hikes has been consumer spending and consumers keep spending because they have jobs. yes, the infrastructure act and inflation reduction act and chips act give businesses incentives to invest in manufacturing. but are they really creating the jobs that fuel the resilience? it is a tough case to make and then there is education and unions what if consumer spending continues to slow down the next yai year and job cuts rise there is a long lag and the biggest union headlines are about writer strikes and store decorations. hard to see how that puts money in middle class pockets. the message is the beginning of a good idea because the president needs a way to run on economic success, but it doesn't connect the dots you say tax cuts for the rich are the future what is infrastructure bills stronger unions? bigger government is a tough sell this cycle. so will bidenomics >> there hasn't been a president that hasn't run on trying to grow the middle class. that's not unique.

and keynesian solutions to our problems is not unique either. that's weird one of the weird things we have wendy addleburg of brookings coming on, and one of her criticisms and she's going to argue on the biden side, i think, this doesn't help with service jobs, maybe the future it is weird to see someone take the stance that manufacturing jobs aren't the answer because that's what we have been told for so long. there is a point >> there is a unique narrative challenge this time, right, because the framing is are you better off than you were four years ago. we're approaching the fall of '24 and you're going back to 2020, well, yeah, everybody is better off in a way, but are we as much better off as we think we ought to be that's going to be -- >> it all comes down to real wages. >> well -- >> and real wages since beginning of '21 or since inflation sort of -- >> if you -- in the last two months, they finally have grown,

they're still below where they were because of inflation. >> what you need to figure all this out is on the other hand newsletter so we're going to help you out and put the qr code on the screen. >> you put how you really feel in that thing, that -- >> yes i'm not going to tell you which one is how i really feel but -- when you write on the other hand, you get to feel all kind of ways because you put your heart and soul into both arguments. there it is. you can scan the qr code or type in cnbc.com/otoh it gives you access to the poll, let me know which side you agree with more. results with last week's topic, are investors wise to abandon bonds? 66% say no yields are attractive now. 34% say stocks are more promising. >> what i don't think is a good idea is to say to people you don't really know how you're feeling. you don't know how good you actually have it 33% economic approval, well -- >> parents do that all the time. >> eat your broccoli

no, but -- i don't think that works to tell people that. >> not back in my day. >> you know you can use the scanners, have you used that i do that now and the prices are higher just no doubt. and we're lucky, obviously, because we don't have to, like, choose between rent and -- but a lot of people have to. and people know that they know it viscerally. just to keep saying, you know, you're wrong, things are great, that doesn't resonate. it might it has to resonate by may or june of the election year. of the election year and they're starting now >> that narrative. >> they were on all week, on the show heather boushey, all with the same rolling this out. >> maybe eventually. >> right, yeah >> thank you, jon. good to see you. >> good to see you jon fortt. up next, global head of commodities research at goldman sachs joins us to talk oil

prices and much more check out futures and how we're shaping up we'll be right back. 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! before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

♪ opportunity is using data to create a competitive advantage. ♪ it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity.

where the possibility of a recession is sparking concerns about the future of oil demand joining us now to talk prices and inventory levels, an update, it is almost like an episode, episodic appearance, because jeff is on a lot jeff currie. last time, jeff, we spent almost the entire segment talking about the supply side of things. that's all we need is for demand to start rising. actually maybe it is what we need for the saudis anyway because it is tough to even stay at 70, even with the cuts. >> well, if you look at the fundamentals, they're turning the corner we had 11 million barrel draw this week, 6 million barrel draw the previous week. with the exception of wti and brent. the things you see on your screen and what we all talk about. every other commodity turned the corner whether it is gas oil, natural gas in the u.s., natural gas in europe, copper, all of them seem

to have shredded that concerns around the recession so you're probably asking what is unique about wti and brent that they haven't rallied. they happen to be the type of crudes that are very rich of the type of fuel that goes into petrochemicals and the petrochemicals space is one that is probably under the greatest duress given the surge of plastics demand that occurred during covid and its giveback time. that weakness is weighing on wti and brent. refinery outages that take that type of crude. this should be temporary our view is that the strength in the fundamentals should put upward pressure on prices back into the 80s on a brent basis and we are sticking with our 86 year end target on brent so we think the fundamentals will eventually materialize in wti and brent and not follow the course of the rest of the commodity complex. >> i guess only the bond market

is signaling -- where are we seeing a recession i don't see how that would keep -- would -- >> there is not much evidence out there for a recession, besides manufacturing is weak and that's my point about petrochemicals i do want to emphasize that the rally we have seen across most of these commodities was really taking off that short position it was short covering, you know, with the diminished views around a recession. i have not yet seen anybody embrace this rally it has been on an unloved one within the broader commodity complex because people are unwilling to embrace the bullish view i think that needs to occur before you can really go to the next level, but, you know, most of that was, you know, over the course of the last three to four weeks, investors that were short commodities around a recessionary view have reversed that view, but have not taken a bullish stance. >> i think you can make a lot of

money if you're right, jeff. i'm trying to think of how our viewers should do that just buy the futures outright or you can buy some calls, that go out how far? because 69 looks like it could be ripe for, like you say, 80. looks like the low end of a range. can you see it going under 60? >> yeah, you had priced in a pretty bearish scenario going back three, four weeks ago when we got -- i followed when we got down to actually almost got a 60 handle on brent. i think in terms of thinking about how bearish it was, you just priced in, you know, 250 million barrel liquidation of spac length. you had the spr release. you had all of that sanctioned oil coming online which was russia and lithuania and venezuela. that's why the stats are

beginning to change. none of that, what i just listed out, is persistent spr draws have turned into spr bills. the destocking ran its course. it had its impact on the front end of the curve and then whethen we think aboute sanction oil, there is no more russian oil, there is no more iranian oil, without substantial investment or big shifts in terms of the current sanctions so we don't see any more of this as being a drag on the price, and we would argue that the fundamental picture begins to materialize in prices. >> what is your baseline outlook for china, jeff, embedded in that $86 price target for brent? i'm curious, it can be perceived the chinese economy is much weaker than anybody expected or on the flip side that that is going to make central bank efforts to revive the economy much stronger. >> it is not as gangbusters as everybody thought at the beginning of the year. it is not nearly as bad as when

you look at the broad consumer, put it all together. oil demand got near 16 million barrels per day, fell back to 15.8 million barrels per day it is not like it is collapsing back into the 14s or 12s like it did last year. the services is holding up in manufacturing. here is what i like to say happened in china. the chinese consumer didn't get the stimulus checks like they did in america and in europe so they didn't come out guns ablazing when lockdowns were lifted in contrast, the factories, all you had to do was get the people to come back to work, flip a switch and you're producing. so you ended up with too much production back in march and april and too little demand, margins came up, the system corrected, but you look at high frequency data like, you know, exports, manufactured goods out of korea it says, hey, probably

rebalancing, it is not going to be a catastrophic situation. it is just not as gangbusters as what we would have thought at the beginning of the year. >> so the environment just for producing is it better than it was? buffett is buying more occi. prices when high, they usually cause people to even do things that the government is trying to sort of tamp down. you're still going to do it in prices like this are we good? are we good in terms of production are we going to hit new records this year or next? >> when you look at the u.s., recently, it has been struggling you look at the production that they were able to bring online of going back to that price spike to 130, that's one thing, having done this for decades, one thing i learned, when prices explode like they did last year, production always beats expectations but one thing we have seen, investment is off, so the

ability for it to follow through going into the second half of this year or into 2024, it is just not there and you're struggling with geological issues as well as capital access issues. >> jeff, thanks. >> great >> we'll see you soon. >> great >> no doubt. i don't know that six handle, we'll see how long that lasts. >> all the best. >> all right coming up, exclusive results from our cnbc cfo council survey back in 30 seconds you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪

when it comes to ai, the ceos are treading carefully for all the talk about how ai can boost labor productivity and enhance products to stimulate customer demand, cfos remain cautious in our quarterly cfo council survey we asked members what best describes how their companies are investing in ai. get this, 41% said they're evaluating ai, but remain cautious 18% said they have no plans to invest in ai, and only 32% said their ai investments are accelerating but perhaps they still see the tailwinds. ai is providing to the broader tech industry. when asked what sector will see the biggest growth in the next six months, more than one-third of respondents said technology that's a huge jump from the survey from six months ago where only 9% expected technology to be the biggest sector grower but, the cfos we surveyed are also torn about the impact ai

will have on jobs. 18% believe ai will create more jobs than it destroys, but the remaining 82% of respondents were split between ai as a job killer and the notion that it is too soon to know what the impact will be. melissa? >> leslie, thank you leslie picker. the trade war with china is heating up once again. this time it is chipmakers stuck in the cross hairs kristina partsinevelos joins us now with more on micron which posted strong quarterly results yesterday. >> they did. but even though micron warned that there is an uncertain and fluid environment, slowing down its recovery plan, the market, to your point, reacting positively focusing on the revenue, the reiteration of full year capex spend at $7 billion. and importantly the ceos call for a bottom but, the chinese ban on its products is not going away with micron seen as a proxy in the china-u.s. trade war

they reiterated the impact to revenue would be a low double digit percentage that's approximately half of china headquartered customer revenue. last october, the u.s. imposed restrictions on certain ai chips exported to china, on the far left of the screen china redtaliated and then calld for a ban just last month. china appears to be throwing up some roadblocks as well. for example, intel has plans to buy tower semiconductor for $4.5 billion, but just this past may, china said they need to review the deal for antitrust issues. and now the united states is said to be looking at adding tougher restrictions which would hit nvidia's watered down chip currently exported to china. the department of commerce won't comment, but my chip sources say they expect for the restrictions this summer. just in a webinar yesterday, the cfo downplayed the impact saying there is no immediate material impact on financial results expected, even though and this is important, even though 20 to 25% of total data center revenue

comes from china she did say, though, that should it escalate, it could be a permanent loss in the united states' industry to lead and compete. an unintended consequence. >> so for nvidia, even though there could be bans, there is not much of an impact. for micron, significant but still not much of an impact because they still raised their full year guidance. >> precisely >> all these company pzies havea lot of pad. >> there is hedging that went on with micron's call they talked about gross margins coming down a little bit and negative free cash flow, but to your point, nvidia's convinced that demand is far outpacing supply you saw that with larry ellison yesterday from oracle saying he's going to spend billions of dollars on nvidia. so there is all this spend so even if they lose the chinese market, it is okay because there is so much demand for all of these ai chips. >> amazing kristina, thank you.

kristina partsinevelos. >> just that there is something, call it an ai chip that people design at that level of -- >> it is not even that level they have a long acronym with numbers and letters and it is all confusing. >> the electrical engineers and the physicists that went -- and. >> ruling this world >> i didn't see many of those people when i went to school and they were there, but they were never out. >> look at them now. >> now they run the world. >> now they run the world. >> and here we are talking about them. >> can you imagine if we had to do that. i would be -- i would set us back 2,000 years that would be the world we lived in if i had to -- two story, no, one story probably, huts coming up, the president -- no bridges. >> no bridges. >> no bridges. >> they would collapse. >> no. i might have figured out -- no >> just donkeys. >> exactly

making the case that his economic policies are working, we'll subset it after the break. another day of cancellations and delays -- there would be no airplanes -- find out what to expect with the fourth of july holiday approaching from former faa acting administrator billy nolen. "squawk box" will be right back.

i was told my small business wouldn't qualify for an erc tax refund. you should get a second opinion from innovation refunds at no upfront cost. sometimes you need a second opinion. [coughs] good to go. yeah, i think i'll get a second opinion. all these walls gotta go! ah ah ah! i'd love a second opinion. no. i'm going to get a second opinion. with innovation refunds, there's no upfront cost to find out. so why not check like i did for my small business? take the first step to see if your small business qualifies for the erc.

president biden coined the term bidenomics as his 2024 campaign ramps up in a speech in

chicago on tuesday he addressed inflation, his plans for the tax code, and building the economy from the middle out and bottom up >> bidenomics is about building the economy from the middle out and the bottom up, not the top down and three fundamental changes that we decided to make. first, making smart investments in america second, educating and empowering american workers to grow the middle class and, third, promoting competition to lower costs to help small businesses. >> joining us with more on biden's economic agenda, wendy addleburg, a brookings institution economics study senior fellow and director of the hamilton project and former cbo director douglas holtig. it is like a discussion or debate that we're never going to settle, i don't think, wendy top up, bottom down, trickle

down, cutting the pie more fairly you're going to take, we were hoping the biden administration's side, but even you have some problems that manufacturing may not be necessarily the most effective way to move forward since a lot of the jobs and >> yeah, absolutely. there's many aspects of biden's proposals that i fully support, and the hamilton project has covered scores of policy proposals supports this agenda, investing in green energy, broad band access, on worker training, apprenticeships, supporting unionization, getting rid of noncompetes, promoting entrepreneurship his remarks emphasized to help communities in poverty and strengthen the social insurance

system and there, too, we have politic proposals on both front. there was worry there was too little focus on the service sector in favor of manufacturing. we have a very large service sector and productivity could do a lot to make those jobs higher productivity and better paying >> when we keep hearing the word investment, wendy, and there have been times after world war ii where it's just been instrumental in actually generating prosperity and helping the economy. and i think, you know, bottom line is the private sector generates growth and generates wealth and deploys capital more effectively. so whenever you want to raise taxes, let the government sort of figure out what our future economy looks like, there are going to be critics that say that's not the way to do it. i'm just wonder, so far what would the president or the

administration say, what growth policies would they say have generated this economy right now? i can't think of a single growth policy that we've seen other than keynesian tax and spend >> i think you have the wrong time frame in mind when we think about the positive economic effects of federal investment, those are very long-term gains. and in part because the federal government should have a far longer planning horizon than many private sector will have. so the federal government is really well situated to invest in projects that are going to pay off over the very long term. we can talk separately about the most efficient way to pay for those projects, but we have oodles of research showing that federal investment can have very significant, positive returns, both in thames of increasing productivity and also pulling in private investment that complements that federal

investment >> both sides have valid points and if they didn't, there would be no debate liberals talk about growth, too. growth solves everything what we argue about is the best way to get economic growth i guess the side you're representing today thinks maybe less regulation and lower taxes. it's not trickle down, it's like the only way really to make the pie become larger and then you're able to split it up better because you need a strong economy to generate the tax revenues to do all these things that wendy wants to do >> well, on the philosophy point, i think the key is that we have a track record of private sector growth in the united states and this administration does not believe the private sector generates growth all policies run through washington, all growth is going to come through washington so they're not going to succeed. their record's not good.

they inherited an economy growing the 6.3% and now 1.5%. you can't defend the record. the record's not good. as far as wendy's point about the investments, the thing the president points to the most is this bipartisan infrastructure law, that's a growth nothing burger the cdo took a look at those kind of programs, $500 billion infrastructure spending and it said if it's paid for by transfer programs, maybe you'll cut it by 6% what they did is closer to deficit finance, about half deficit finance so that's going to get you maybe 2 or 3% increase in productivity over ten years, you're never even going to notice.

their signature accomplishment is taking money from private sector, sticking it to the public sector where the cdo thinks it's half as effective. it's hard to support the concept or the record. >> wendy, do you want to respond to that? >> i would love to biden did not come up with the idea himself that federal investment for decades was lagging in critical areas. and president after president was trying to get it done and this should be celebrated that we have -- we now have policies in place to make up for years and years of shortage in federal investment again, i am delighted to talk about the best way to pay for these things the hamilton project has a handful of really well researched proposals for the most efficient way to raise taxes to get more revenue. but the idea that federal

investment does not support economic growth, it's not an essential part of the ecosystem, of our very large economy. i just don't see that -- i don't see that in the empirical evidence >> i never said federal investment wasn't important. i think what you pointed out was the chronic lack of funds for federal investment programs. there's a reason for that. it's because mandatory spending has crowded out the annual discretionary spending where all of the basic research, infrastructure, national security is financed which president has said we're not going to touch the mandatory spending president biden. which president has proposed even more mandatory spending, $5 trillion, immediately i don't know take on the reforms necessary to free up the funds to do the investments. >> i'm sorry that doug is going to have the last word but we'll hopefully do it again.

worthy adversaries, wendy. my head never wants to explode when i listen to you and that's usually what happens here. i always find myself nodding she's got a good point and you, too, doug but in your case you're kind of preaching to the choir >> i just want to confirm you thought i had good points this time, too, right >> i missed that >> i just wanted to confirm you thought i had good points this time as well, right? >> always. >> excellent >> and i'm a hard sell i appreciate what you do, wendy. coming you, the u.s. considering new bans on a.i. chip exports. check out the futures right now. they're still up a little bit. we'll see what happens

he says most of his

colleagues see at least another pair of rate hikes coming this year sara got to go to portugal i had to have been there it's gorgeous. and the countdown is on. we'll take you live to new mexico ahead of a big day for space tourism as the final hour of "squawk box" begins right now. good morning welcome to box we're live at the nasdaq market site in sometimes square becky and andrew are off today taking a check at equity futures at this hour, the dow up by 112, the nasdaq up by 65. treasury yields, 10-years up

3.7% >> here are some of today's top business stories someone selected these so take that for what it's worth the federal trade commission is gearing up for another lawsuit against amazon.com with its new chief complaint that amazon rewards purchases are who use its services and punish those that don't >> and overstock.com will take on the name of bed, bath & beyond and relaunch the bed bath web soothe in canada followed by a web site and loyalty app in the u.s. in a few more weeks and make sure to catch overstock's ceo on the exchange this afternoon and unionized port workers in

western canada planning a strike starting on saturday, the biggest port that would be affected it vancouver. the port there about 15% of container trade there goes to or comes from the u.s federal reserve chair jerome powell said they expect an interest rate hike joining us is global strategist at jpmorgan asset management good morning >> thank you for having me >> yis that sweet spot or purgatory? >> it feels a little bit like purgatory but we're probably before a more pronounced economic slowdown and profits slowdown it loaves investors in a little bit of no man's land, should i stay or go if we look at the majority of the market, it's relatively

stable outside of the surging seven stocks and i think that is a good thing because it means valuations are near their long-term averages. we're not seeing too much overpricing in thatting isment of the market, which is the majority of the market i'd also say investors should be a little bit primed for a fullback i don't think we're going to need to retest the october lows of last year the next catalyst going forward is going to be earnings. the earnings season will give us a tangible outlook on what consumers can do and what companies can do well. >> if we do have a pullback, is the market stronger because most of the gains are focused in seven stocks or is the market more vulnerable? >> i think the market's stronger again, the rest of the s&p outside of these small number of stocks are reasonably valued and have been pretty resilient overall to the repricing within the fed and what the fed's

expectations are over the years. so i think this could be somewhat of a durable market when we think about the rest of the players, maybe the experience, again, a bit of whiplash from some of the gyrations in the economy and profits, but overall i think this is a good thing for the markets that we haven't seen everything run really far. >> do we need to see -- we've been seeing glimmers of broadening out do we need to see that continue for the markets to maintain these levels in. >> i'm not sure that we need to. you continue to see it's really tech dominating the headlines. what i would encourage investors to think about is where can we access some of these a.i. themes outside those small number of stocks let's think abroad internationally there's a lot of tech players over in asia. we're finding tech val vuations and opportunities there. and in the private market as

well if we think about private equity and where that can be a big player in a. ii. going forward,e see fewer and fewer companies going public companies stay private for longer and get more mature in the private markets. if we think about the russell 2000, what we actually see underneath the surface is almost triple the amount of exposure to tech and equity. i think the next round of really successful a.i. players will come within those private markets, which is why we're thinking about how we can gear our investors towards those opportunities. >> maybe there's too much froth in some of the a.i. plays here that we're seeing run? >> absolutely. if we think about the ts&p 500, the top ten stocks make up

almost 30% of the index. back in '20/'21, now they make 18 to 19% of the overall we want to be mindful of some of these valuations and we'll be closing watching profits within the tech sector to see how they continue to evolve the reality is so many of the gains in a.i. are impossible to model. >> what kind of feedback to you get from analysts who cover nvidia and the companies that are modelling this in? the companies are saying these are in our forecast. >> i think even the typical analyst would acknowledge that it's hard to see the entire runway of this a.i. story play

out. and it's also hard to assume what sort of beneficiaries will come about in applications we haven't even invented yet. i think we want to be a little cautious maybe we're in and chartered territory because some of these stable companies with a number of basis segments that have been durable over time are being the net gainers. but we want to think about that holistic portfolio are we getting things as a reasonable price are we eliminating any vulnerabilities for a pullback we really want to seek some balance in this environment. a lot of people have this bias about how strong some of these things have done year to date. let's not for get 2022 when we saw a massive pullback in a lot of these areas so we have to be a little bit more balanced and neutral as investors. >> thank you before we head to break, reuters is roaring that morgan stanley's

board will consider ceo suc succession at its fall meeting the timeline had previously not been reported. morgan stanley's co-presidents are widely viewed as front-runners. the reuters report says the firm's head of investment management is also a contender >> reminds me of welch do you remember the three? >> nardelli -- >> mcinerney and they all went on to -- nardelli didn't do well at home depot. mcinernie did well >> and coming up, virgin

galactic is set to launch its mission. and we'll talk chip competition and the chinese fashion brands temu i don't know about that. do you know about any -- >> yes, i do >> very fashionable. "squawk box" will be right back.

♪ i'm here with these low handicap golfers to put new maxfli tour balls to the test. how does it feel compared to the ball you've been hitting? it's definitely softer. good ball flight it doesn't wanna... flight was amazing. it just goes. sat down like an old dog in front of the fire. errrt. stopped on a dime. you need to be on tour, and you need to take that ball with you. that's the sound of a good ball. let's go! maxfli. tour quality performance without the tour ball price. next time we gotta find a tougher course.

bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small, and once-in-a-lifetime.

our next guest is the top democrat on the house select committe the chinese communist party. an interim report of a bipartisan investigation into chinese fashion brands sheehan and timu raising questions about potential forced labor and the skirting of u.s. import taxes. joining us to talk about this as well as possible new restrictions on u.s. chip sales to china is illinois representative raja krishnamurthy. the two sides don't need to argue. i worry about china. it's a daunting future we face as a country but at least democrats and republicans can

approach it together and we can try to deal with this united as a country. >> that's right, joe i think this is one of those challenges that's so complex and that's perhaps one of the biggest challenges we've ever faced as a country that the only way we can tackle it effectively is to do so on a bipartisan basis. i'm really glad that chairman mike gallagher, who is a great guy except he's a green bay packers fan, joe i'm a bears fan. aside from that we're trying to work together. >> i'm a big fan of congressman gallagher, too what a future and what a past that guy has it's good and it's a daunting thing to try -- these are small issues you're talking about now. all i worry about is how important china is to so many big companies here in the united states and if something with taiwan happens, we're going to have a replay of what happened in

russia we're not enemies with the china people it's the ccp it's such a hard road to navigate, congressman. >> it really is. and if something were to happen with taiwan, it would tank our global economy for sure. 50% of the economy traverses the taiwan strait every day and 70% of semiconductors are manufactured in taiwan what mike and i both believe we have to do is deter aggression, deter conflict so we've put in place some bipartisan recommendations to do just that. we're hopeful that it translates into legislation that the congress adopts. >> that's the thing.

there's a way of preparing for what we think is inevitable with taiw taiwan, or there's things we can do to make it really unattractive for china to actually go forward with that. do you think there's things we couldactually do that would preclude that from ever happening, congressman >> yes, 100% just a couple things we are recommending among others. the taiwanese have purchased numerous armaments, weapons from the united states that have yet to be delivered to them, in part because there are problems with our military industrial base and supply chains. so we have to figure out how to fix those so we can both equip the taiwanese as well as keep our homelands safe and provide arms to the ukrainians who are, as you know, fighting valiantly. the second thing that we have to do is to strengthen our partnerships and alliances in the indo pacific region, which the biden administration has

been doing capably and that has a deterrent effect regard could the chinese communist party. >> congressman, when it comes to timu and sheehan, for americans that means $8 swim suits but you found they're using the de minimis rule that would be given about where it's manufactured and how it manufactured. how do you close the loop here >> you bring up some good points temu and sheehan are some of the fastest growing companies in the world. in particular they use something called the de minimis exception, which means that for goods that are valued -- shipments valued less than $800, that they are able to ship directly from china to people's homes. they are not subject to duties and there is much less

information about their place of origin under our american law, we are not allowed to import any goods from a certain region of china which is where there is a genocide of the wieuyghurs. they have zero complains mechanisms to make sure any of their products aren't coming from those areas i think consumers don't, all things being equal, want to purchase goods that are contaminated by slave labor or forced labor >> it is the -- i won't call it the tip of the iceberg but i wonder how much we really know about a lot of other companies and what's happening in china.

on the one hand we should have z zero tolerance and on the other hand it's the real world we get a lot of oil from saudi arabia take your pick of countries that we might do business with where it's not perfect maybe we're not perfect either, congressman. maybe they would say that but we try. we seem to try a lot harder. >> we're not going to achieve all of our ideal in america but we try and we try our best to shine a light on issues and try to provide as much information to the buying public that being said, i also think that we have to work with our partners and allies and friends to put in legislation similar to ours for us to globally deal with problems such as the uighur genocide, which is difficult to

see it exists. >> we think about the technology and free throw of chips and a.i. and it would be good for the world. globalism is good if it's not being exploited by one side or the other to try and get ahead and we know that that's happening. it's all very difficult and complicated and it needs bipartisan -- i applaud your e efforts with congressman gallagher. it's good to have you on today, sir. thank you. >> thank you, joe. >> coming up, how airlines are handling thousands of recently cancelled flights and a rush of holiday travelers expected over the next few days. next, morgan, what do you have coming up? >> hey, melissa. from airlines to spacelines, the first paying customers for the

ine flhtlactic space flight, a 90-mutig to space. what people need to know a stay with us

uighurs another big day for the next generation space race. morgan joins us live from new

mexico with the latest i just like the name of that place, morgan. >> truth or consequences, new mexico i'm assuming that is the place nearly two decades after being founded, the company is poised to launch its first revenue generating space flight here this morning galactic i is going to carry three members of the italian air force and three virgin employees to the edge of space 90 minutes in space after years of delay this is a major milestone. unlike it's competitors which carries people to orbit, galactic's fate rests solely on convincing the paying public that suborbital space travel is

worth the $750,000 ticket price. the bag log so far, 800 people the business case, simple. fly more people. generate more revenue. the plan, if all goes according to plan today, is to do that monthly. the path to profitability hinges on the next general rtion of sp trips, the delta class >> those flights will go every week that's what we're working on with our design teams to make that spaceship real. >> reporter: funding those spaceships is the reason they are raising more money right now. all of that hinges on what happens here today even with the capital raised, shares are up about 40% over the past month but they are down more than 90% from that all-time

high back in early 2021. as of right now it is all systems go for take-off to happen in just over two hours at about 10:30 a.m. eastern guys, this will be a 90-minute flight later on "closing bell overtime" we're going to bring you an exclusive interview post-flight if everything goes according to plan, with the ceo of galactic >> i think extreme adventure travel is not going away it may even -- it's been thrust even more preinto the spotlight i may wait a couple years. >> anybody you speak to, whether it's analysts or ceos at companies like virgin galactic,

the total addressable market for space flight is still a moving target right now demand outpaces capacity and jefferies put out a number of 1 of $120 billion for the space market in the coming years. >> thanks, morgan. thanks for making the trip out there. coming up, breaking economic data when "squawk box" returns at no upfront cost. s sometimes you need a second opinion. [coughs] good to go. yeah, i think i'll get a second opinion. all these walls gotta go! ah ah ah! i'd love a second opinion. no. i'm going to get a second opinion. with innovation refunds, there's no upfront cost to find out. so why not check like i did for my small business? take the first step to see if your small business qualifies for the erc.

seconds away from initial jobless claims and the final revision to first quarter gdp. futures indicated higher across the board. rick >> we're expecting our last time around the block, third time with respect to gdp and initial continuing claims we could serve stress enough how much importance that we put on those numbers. on the gdp side, we actually see a jump from 1.3 up to 2% it's very unusual to see these types of moves when you're this long in the tooth and do keep in mind it really doesn't change any of the metrics for gdp because the 2% or 1.3 is still going to be the lightest that

we've had since the last quarter of last year at 2.6. personal consumption is coming in now at 4.2%, also a very nice jump from 3.8. on the pricing index, 4.1% it was 4.2 in the rear view mirror it was expected to be 4.2. 4.1 is not the lowes, though 3.9 was the lowest after the 9% read in q 2022 quarter over quarter, 4.9%, 0.1 less than the 5% we were expecting. how does that pan up to history? second quarter of '21, not '22 was a high water mark, that was at 6%, the highest since '83 the lowest was the fourth quarter of last year at 4.4 and now 4.9% so we see that this is also very

sticky as a matter of fact, we've had several numbers, of course, that were 4.7 mid '22 so this is definitely a bit on the high side. in terms of jobless claims, 239,000. we were expecting 264,000. that is a huge, huge move and 234,000 brings us to the lowest level going to the last week in may, last week in may. with respect to continuing claims, 1,742,000. that indeed is less than the numbers that we were expecting and once again, we continue to be stable at 1.8 million on the continuing claims side interest rates have move us, melissa lee and i'm sure they're moving up for a combination of a lot of reasons claims are on the light side, keeping the fed potentially hot and even though numbers unlike germany and inflation data that came out today was higher than

expected and higher than the last look. these were tame but the fed's going to have a tough job and the biden administration is going to have a tough job explaining away what still remains sticky but improving inflation. back to you. >> all right a little bit of pick up in the futures right now, equity futures that is. rick santelli switching gears to the travel nightmare as we approach the july 4th holiday. let's get to phil lebeau in denver phil >> reporter: melissa, it is getting a little bit better but we're already seeing some cancellat cancellations today. generally things are moving along fairly smoothly. look at the cancellations that we saw according to flight aware. now, it has improved every single day a good chunk of these on the ka cancellation side.

united has already cancelled 11% of its flights today it's better than yesterday or the day before when it was cancelling 26%, a lot of those out of newark. the airlines saw these lines and they know how frustrated travelers are. this week is a crucial test. you will see more than 17 million people flying here in the united states, the most since before the pandemic for a one-week stretch the busiest day as you take a look at the improving numbers in terms of travelers, the busiest day will be tomorrow that's when the tsa expects to screen more than 2.8 million passengers we're almost, not quite, but almost back to 2019 levels you myight be saying does any of this matter to investors they see the opposite. they see delta raising its guidance they expect america, united, southwest and they expect all of them to raise guidance for q2

and give bullish outlooks for the third quarter. in terms of delta, american and united, those three are at highs and we'll be here and monitor what the ripple effect has been and we're also going to be keeping an eye on that smoke at that continues to drift into cities hopefully we don't see any of those brown stops that we saw about three, four weeks ago. >> i was in that very airport, phil, one week ago i spent nine hours there and storms are storms. how much can be attributed to storms and air traffic control >> well, air traffic control shortages do play a role it's hard to know how much of a role but clearly you don't have the same amount of staffing in new york, in miami at those facilities that you should have. in fact, the d.o.t.'s inspector general put out a scathing

report last week saying they don't have the staffing that they need at these air traffic control centers. having said that, melissa, this week some of these have been brought on by the airlines, united has its own issues. that's compounded what we've seen with the air traffic control level. we haven't seen the traffic we've needed in this country it's going to take time to get there. >> joining us now with more on the air traffic disruptions, currently the chief safety officer for archer aviation. if you break it down for just weather versus maybe some equipment challenges i know that there are some things happening with retro fitting for certain boeing jets. is it 50/50?

what's really happening? it's been a rough week >> it has been a rough week. similar to melissa's report. i think there's a couple of thingsto think about number one, airlines mostly have met their retro fit for the 5g and potential disruptions. the faa gave the airlines until july 1st to be fully retrofitted. there are few out there, delta still working on the deadline. secondly, to point around air traffic controllers, there's still some shortages there in new york i think one of the ways to address that is for the airlines to work with the faa in terms of moving some of that airspace, that will clear up a little bit of the congestion from new york. they are running double to

triple the delays of other airlines and lastly what i would say is that you look out there, there's also a bit of the mixed eclipage what does that mean? that means that an airline has the kind of equipment on board that can take advantage of what we call next generation technology most of the main airlines are equipped with that and some. regionals are now. it's an improving picture overall but there's still more work to be done. >> a three-day weekend one of those it was going to be the busiest day since prior to the pandemic, even setting a record from prior to the pandemic it's just simple pent-up demand going into the summer, too, i guess. >> it really is, having been a long time airline captain myself, you look at the numbers. 2.82 million this coming friday.

those are just the kind of numbers we haven't seen since 2019 so the thing i would say to the flying public is give yourself adequate time, get there early the lines are just going to be what they are. that level of preparation as we see move into this busy, you know, post-pandemic 4th of july weekend is something for us all to keep in mind. >> mind boggling how incredibly good it actually is. just a few thousand flights. landing, taking off, taxiing that it ever worked perfectly is kind of a shock, billy so maybe we shouldn't complain too much try driving. you see what kind of spaces that you're talking about it's a phenomenal thing that the industry does day in and day out. what about staffing, billy? there was a time that hotels and

restaurants could only operate at 60s are 70% because they couldn't get enough people you do need flight attendants, pilots, maintenance guys are we flush there or are there pockets there as well? >> during my time there were times last year that some airlines were working at maximum capacity, so coming back from the pandemic and making sure you have adequate staff for your airline and pilots on any given day there's roughly 45 to 50,000 flights that's just a lot of folks traveling. for that system to work, it means that, you know, there is that level of work that has to come together, between the

industry, the faa and the d.o.t. you saw some of the things they put into place to help the flying public, there are new routes coming off the east coast to help alleviate congestion there's been better coordination on space launch and restricted airspace you know, this is good new news there are still some structural issues like getting through the pipeline and getting that dong quicker that the faa needs to address and also that continue collaboration and cooperation between the faa and industry at writ. >> do we know about how much money we owe as a country? we're constantly trying to tighten our belt i'm sure the faa wishes it had a lot more money the state of the art systems that the faa is using.

if you believed in mmt, you could print as much as you wanted, what would you like to do how much do we really need to do to be state of the art with what some people would call the greatest country in the world. >> number one, it's a commercial -- it takes an airline pilot or an airline about six to mine months, maybe a year depending on the complexity of flying to get a pilot out the door it's taken three years to get a fully certified air traffic controller i'd like to see more investment there. that ability to kind of leverage a.i. the fa does a very good job for a system which han ls thousands of systems when i see legacy, some of this stuff is 20 to 30 years old.

so those consistent level of funding and ensuring that congress gives the faa the necessary funds and tools it needs, to your point, the best airspace in the world. this should be what we sort of demand >> would you be okay if i took like 40,000 of those irs, the new guys, instead of 80 can i take 40 and then put the other 40 to do the faa stuff am i wrong that that might be a good idea or no? >> i wouldn't opine on that particular -- >> i didn't expect you to. that was me thinking out loud, which i try not to do, but sometimes it happens i think of all the things we spend money on i definitely don't want to cut back here. you know >> yes it is one you think about. i'll just put in a plug for the company i work for part of what we're trying to do is how do we decongest

this is a space that will continually involve and is this truly the role you can play a role in. but as a nation we want to make sure we've got the best national airspace ecosystem in the world. that means having a level of funding and having the collaboration with the industry and the faa, it's olding this is really what the public should have a right to expect >> very good billy nolan, thank you and up know what a pilot's perspective, anything else, anyone who hasn't done that i don't think can really talk as intelligently about things we appreciate your time. thank you. >> thank you very much, joe. appreciate it. >> coming up, venture capitalist

and former goldman sachs asset manager sheila patel joins us for an ierew yntviou won't want to miss.

welcome back to "squawk box. the futures up where they've been, triple digits on the dow, would be the first winning session for a while if it were

to hold up between now and 4:00. we got the s&p up about 13, nasdaq up about 42 and jeff says we're going higher but still below 70 on wti. it's been a good week for bitcoin and crypto, up another 2% at 30,000, almost 30,700. >> the fed says only 23 banks exercise a severe recession scenario while continuing to lend to consumers and businesses the banks have $541 billion in projected losses but were able to maintain minimum capital levels this year's tests were revised before the recent banking crisis with silicon valley bank the uncertain economy may curb shareholder returns in the short run.

>> three companies set to make their wall street debut today. savers value village that's the largest for-profit thrift store operator in the u.s. and canada, priced at $18 a share, that's before the estimated range. kodiak gas services, $16 a share, that's below the prior range and fidelis insurance priced a $14 a share, below its proposed range coming up, some top stocks on the move ahead of the opening bell on wall street. stay tuned you're watching "squawk box" starring melissa lee today on cnbc

♪ opportunity is using data to create a competitive advantage. ♪ it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity.

little more than half an hour now until the opening bell on wall street dom joins us with a look at premarket movers >> the headlines related to the trading day comes via the tech sector

micron shares up it was higher, so we're off the session highs. the memory chip maker topped analyst expectations, and that's thanks, in large part, to higher demand for its products driven by, what else, the boom in artificial intelligence-related applications the ceo says he believes the memory industry has passed through its trough in revenue and expects profit margins to improve as supply-demand dynamics start to get more normalized in oil and gas, shares of occidental petroleum are catching a bid, up over 1% warren buffett's berkshire hathaway has again upped its stake in the exploration and production company berkshire added north of 2.1 million shares of occi that brings their stake to over 25%. occidental up 1.25%. and we'll end with a check of netflix, up roughly 1.5% right now, just about 1% now

helped along by analysts at citi who upped their target price to $500 it was $400 before they maintain their buy rating they cited, amongst other things, more bullishness on the new advertising-supported subscription offerings and the revenue that comes along with it melissa, netflix up 1% i'll send things back to you >> thank you, dom chu. joining us to talk about the markets, sheila patel, former chairman of goldman-sachs asset management sheila, great to have you with us dom was mention a.i. this is an area that your firm is investing in. what's your take on the run-up that we've seen? it almost felt like pixie dust whenever a company mentioned a.i. on a conference call, that added billions of dollars in market cap >> i think it's fascinating, the survey that you were quoting earlier on the broadcast where cfos seem a little sanguine to lackluster on how much they're investing in a.i., and it made me question whether we count

everything that is a.i. as a.i., if their teams are picking enterprise software, it's probably using a.i there are a lot of indirect investments in a.i., and i think that's actually generating some momentum in sectors that aren't getting credit for it. so, right now, if you look at the rally we've seen over the past few months in the s&p, it's so tech driven, a.i. driven, but actually, industrials and a lot of other industries, healthcare, will be hugely impacted, potentially even bigger than tech itself by a.i >> do you feel like this market is more vulnerable or less vulnerable because of the outsize leadership we've had in a handful of tech stocks >> coming from my history of goldman and on the trading floor, my origins, i always get a little worried when you have a dominant sector to this degree i mean, the rally in tech is larger than the entire market cap of industrials that's a little off. so, something has to give. i think broadening would

obviously be more pleasurable for everyone than seeing a huge pullback, but that singular focus is maybe, again, a bit of a misguided approach to how a.i. can actually impact the markets overall. >> how is your firm looking at a.i. you were mentioning some of the ways we're not thinking of a.i. in other industries. so, is it just sort of like the obvious chatgpt openai kind of companies, or is it other sort of ancillary companies >> it is ancillary companies it is, how can a.i. help traditional industries, help other segments our strategic partner is bcg they make a business of advising the biggest multinationals in the world in every area. take pharma. if you look at one of our portfolio companies, adam-wise, they're using a.i. to address small molecule drug discovery. they just did a great deal with sonofi because of that ability of a.i. to potentially help problems that we have in drug discovery for very difficult

diseases and very difficult solutions to find. that's just one example, and there are numerous examples like that >> young companies, you know, environment where interest rates are higher, and the economy might soften it might be a challenging environment, but you're looking at an area that's very hot, so how do those sort of two opposing factors play out? >> it's been a bit of a trifecta first of all, you had nontraditional investors show up in venture in the last five years. that's been huge so, any number of potentially great ideas have been funded they're now at their lowest level of investment in five years. ipos, as you were reporting earlier, lowest number in ten years. then you get to venture itself, and it's been a tough fund-raising environment for venture, and tough to see next rounds and so, you know, for us, we look at it, and we say, who can we help that has the runway and had the ideas that can help new industries in the future >> i would think that based on what we're seeing in the market, it does seem like there are pockets of speculation going on,

but there is some willingness to take on risk, whether it be in the new ipos that we're seeing being priced today, or expected to be priced today some individual stocks that have just exhibited huge runs like car carvana, which is up 400% and the a.i. sort of boom that we have seen, and yet you're saying that's speculation from your perspective doesn't look like it's very robust >> i think it's been interesting, the shift from public to private. you're seeing companies stay private longer, and you're seeing maybe a sentiment that that's a good thing, because it enables them to develop their business in a different way versus the day-to-day pressures that you get if you're a public company. and i think that's probably true: so, that actually gives me some hope from that speculation perspective. i think the real concern on the speculation part is for those public markets and that concentration maybe in a few sectors that make it a little tough to keep a rally going. >> when did you leave goldman, sheila

>> i left in 2021. we're almost exactly at two years since i resigned from being chairman and management committee. >> just wondering. you still got friends over there? >> tons of friends >> what are you hearing? >> you still have stock? >> i still have stock. >> that's the hardest question for you. what are you hearing >> look, i think goldman is incredibly resilient and has such a deep bench. it's one of the reasons when you leave after almost a 20-year career there, especially when you leave something as engaging as being on the management committee and chair of one of the biggest asset managers in the world, you think, who's going to come next it has such a deep bench whatever ups and downs you see goldman go through, and i went through them over the 20 years, somehow it ends up getting through. i think we're in an interesting period you have a lot of noise coming out as usual >> exactly the media surrounding. >> yeah, there's always -- >> people like me asking questions that have nothing to do with why you were here.

>> she has 20 years at goldman >> i still have my stock that tells you something >> sheila, thank you >> thank you >> we'll take a quick, you know, rather talk to her there's not much happening, except the dow has cut its premarket gains in half, now up only 46 points still green, but a long way to 4:00 it's been a good month for the s&p, and it's been such a great day. join us tomorrow she'll be back >> see you at 5:00 >> and she'll be on at 5:00. "squawk on the street" is next ♪ good thursday morning, welcome to "squawk on the street," aisle carl quintanilla with david faber, mike santoli at the new york stock exchange cramer has the morning off got some news flow on this thursday, big reskvisions higher to q1 gdp. micron is moving some chips. banks pass the stress test and an important day for ipos. our road map begins with the return of the ipo. three new listings set t