good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq marketsite in times square i'm becky quick along with joe kernen and andrew ross sorkin. welcome back you got to be tired. >> i am a little bit i got my coffee here >> you need a second. >> from all that, you and kevin, all the -- must be -- >> very relaxed. >> you're very low key well, that's good, right >> easy morning. let's take a look at what's happening with u.s. equity futures. you'll see green arrows with dow futures indicated up by 60 points this comes after a gain yesterday of 83 points for the dow. that is the 13th time in a row that we've seen higher numbers for the dow at the end of the

session and that's what a difference a day make, right yesterday we were talking about the longest winning streak in six year, all the way back to 2017 now at 13 we are talking about the longest winning streak since 1987 you got 35 years ago, so really jumped up. hoying it's been to do something like this. i don't know 14 days in a row but we'll continue to watch this today s&p futures up by 26, the nasdaq up by almost 200 points and that's because of the strength of meta and some of the other earnings we'll talk about in just a few minutes if you've been watching the treasury markets, what's been happening, looks like the 10-year, the yield is at 3.87, the 2-year, 4.87%. they're still moving in lockstep we do have earnings season rolling on and we'll hear from honeywell, southwest air, mcdonald's and comcast, all of that coming before the opening bell after today's close, we will hear from intel, ford, roku and

t-mobile at 8:15 a.m. eastern time the european central bank will release its latest rate decision it is expected to hike its key interest rate by a quarter point. then at 8:30 a.m. today we'll begin the first read on u.s. gdp in the second quarter and weekly jobless claims and durable goods orders for the month of june. the federal reserve because of that hiked interest rate, a quarter point yesterday, chair jay powell saying it is too soon to tell whether that hike would be the last. joining us former federal reserve vice chairman roger ferguson, the fellow on the council of foreign relations and senior economics reporter steve liesman joins us i'll go to steve for a moment first because you got to spend time and see the man in the flesh. i'm curious what your sort of takeaway was and whether you think another hike is coming or not, steve >> i mean i think it's possible. i think powell was very much

down the middle. i think he didn't say what he was going to do because he doesn't know what he's going to do i'll set the stage he has a committee that pretty much wants to hike i'm not sure the chair does but i think the chair will guide and also follow his committee and so i think the story here, andrew, is that when he said he has time to make that decision, i would take him at his word he has two jobs reports, two inflation reports. i think september is probably not going to happen. i think if there is going to be a hike, it's in november and i think when i read the commentary out there i have folks who said, you know what, he was really dovish and you look at the statement language, would have the same hawkish language that was with the july cut and tells you, you think they're going to hike. put your feet up, watch the data and if inflation data is soft they'll not hike anymore and if it remains to be difficult or

high, then i think the fed might put another quarter-point hike in there. >> roger, in agreement with steve there or not what do you think? >> i would say i'm in agreement with steve i think chair powell tried to leave the door wide open for either move at the upcoming meeting. he was very clear, as steve just said, there's a great deal of data coming forward. they did ratchet up slightly their assessment of growth, which he recognized could perhaps be a precursor to the need to tighten more but i think as steve said, it's wait and see moment right now. >> let me ask you, roger, how much of the fact that inflation has come down do we now ascribe to the federal reserve you've already seen it in the last 72 hours, a debate has emerged. a debate has emerged the entire time but how much do we think this is the fed doing this how much do we think this is just this untangling

post-pandemic that's happening and how much of those things do you think actually converged >> so i think, frankly they converged so absolutely there is some untangling of a very complex economic situation, you know, post pandemic, a lot of unskerpts with the war obviously driving certain prices, having said that we know the economy was running hot and also have to recognize for good reason, i would argue, the government wants to make different kinds of investments that have proven to be stimulative we know that households had a great deal of pent-up savings, some still argue they do so those economic factor, not the geopolitical ones required the fed to take action so i think it's a combination of both and i think they're prepared to take the next move if the numbers come in as some think they might still higher than what the fed currently wants. >> steve, where do you land on that debate these days did you read krugman had a take

on inflation making the argument the fed made the right decisions but it's not clear that those were the decisions that led to the cooler economy that we're now having >> yeah, i mean, i think we can dissect this, you know, six ways to sunday. i think the fed is doing what it has to do and i think what does it have to do? it has to bring the real rate or the inflation adjusted rate to a positive or restrictive territory in order to combat inflation. it's kind of like techbook central banking. and so whether or not it's responsible for the decline, you have all sorts of dynamics about the economy, all sorts, by the way, of different national security and other economic priorities that are manifesting themselves in the fiscal spending side. and i think that, you know, we're all instructed by robert kaplan's discussion earlier this week that talked about the idea

that there has been and remains a fiscal impulse in the economy and that will work off next year andrew, i wanted to throw out an idea that i want to run it by roger if you give me just a second here. >> please. >> i'm not sure that the fed is keeping alive this idea of raising rates in order to actually increase rates. i think what powell and the fed may be doing and i think it's consciously is trying to maintain current levels, and i'm sort of equating the fed now or even fed chair powell with kind of like a jockey who is on a horse that wants to run. what is that horse it's the u.s. economy. it's the stock market and he does not want the market to begin pricing in at this time given the uncertainty over inflation higher -- either the end of rate cuts or rate cuts themselves, and so i think one of the things they do, they keep up with this idea that the fed is going to perhaps raise rates

in the future to keep the market on edge and keep it from pricing in those cuts, which now are in march and the market would bring forward in a heartbeat >> what do you think, roger? >> so, i agree with steve in part the fed already says it has a number of tools and one of those is, you know, what it says, what it signal, et cetera, and steve says trying to drive expectations, not just in the market, but also expectations for consumers around future inflation, so i think there's certainly a grain of truth, more than a grain of truth to what steve says what they say is part -- one of their tools. having said that, i also think they're not saying it purely as a signaling device, but they also are prepared again to hike and we've seen them do it many times so both things can be true they want to manage expectations, and they want to be clear that, you know, another hike is certainly very much in the cards, either september or

november >> steve and roger, we got to leave it there it's a longer conversation and bigger debate and i'm sure we'll have a lot more of it. thanks, guys all right, some news out just in the last half hour eu antitrust regulators have opened an investigation into microsoft. at issue, the company bundling its chat and video apps teams with its office products the eu says microsoft may be abusing and defending its market position in productivity software awfully reminiscent of what we used to see with the original antitrust lawsuits that went after microsoft in this country going after them for having their browser wrapped up in their microsoft office and that was the big fight. right now you can see microsoft shares up by $2.50, stock has been on a tear up by 42% but these activities coming from regulators after big tech have been freak and we are still anticipating that the u.s. could file against amazon as early as next week.

>> the stock got hurt yesterday. badly, so hard to say anything about the little bounce today. but this bounce, meta shares on the rise after a strong quarterly report look at that 25 bucks, 8.5%, optimistic guidance, digital advertising, rebounding to some extent after a recent slowdown. we're going to talk all about that and look through the results, remember, you could have bought that stock for 80 and change not that long ago later, southwest airlines set to report and we'll bring you the numbers with an exclusive interview with bob jordan, you're watching "squawk box" on cnbc what if you could make analyzing a big bank's data... no big deal? go on... well, what if you partner with ibm and red hat,

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meta platforms reported better than expected earnings in revenue as well as upbeat guidance for the current quarter. several major banks raising their price target on the stock including bank of america, jpmorgan, morgan stanley and wells fargo. joining us is brad ericsson, rbc capital markets senior analyst the company actually had in the recent past lower advertising revenue. in the past it's been

unbelievable, huge numbers in terms of year over year gains but a 12% gain in digital ad revenue. that's good but how much is just macro and just the rebound in digital advertising with the economy after the pandemic >> yeah, thanks, good morning, joe. yeah, so, i think a decent portion of it is just the fact that, you know, we had some epic headwinds last year that are reversing now and do have the macro getting better they called out things like gaming and china advertisers sells into the u.s. doing a little better so you have some things that on a year-over-year basis, things getting better and given the acceleration they guided up i think to 24% growth at the high end in q3, and we think it could potentially even accelerate furtherer into q4 and that's highlighting the fact that meta is doing a lot of things unique to their platform driving better ad revenues, as well >> supposedly a.i. made it more

adept at figuring out how to advertise digitally. is that just their contribution to, yeah, we're doing a lot of a.i. too and it's helping us or did it really make a difference and i'll say some of the products after that apple move. >> yeah, no, no, definitely makes a difference and turns out a.i. does things better than humans, who knew yeah, so basically, for example, when you're running an ad campaign on facebook or on instagram, part of their new platform and some of their new products allow you to provide data back to facebook in an anonymized way that tells them when you are getting conversion so you run an ad campaign and get some business, meta is finding out about it in a privacy secure way and able to effectively feed that into the algorithm and drive more business. >> can i just tell you, it

works. i mean, i buy tons of stuff that instagram pitches me i've tried some stuff on twitter and it was all garbage but instagram i'll spend a few hundred dollars on stuff that they're pitching me on, clothes that i never would have thought of brands i never heard of before their algorithm has figured me out. >> i just kind of think it's cool that i talk about something and there it shows up, toe fungus medicine, there it is i mention something and it hears me and tries to sell me some of the anti-fungal -- no, i'm kidding. hey, brad -- >> not kidding, it's true. >> no, it's not true that i have toe fungus >> they actually mentioned that on the conference call and called out toe fungus as a strong vertical. >> as a strong vertical. as you said, the world needs dreamers, brad i think. he said dreamer. he's a real dreamer.

98.5% -- 4.4% of meta's revenue is digital advertising and yet it's called meta and yet and they're doing threads and they're doing all these things that are big ideas, but they're not -- they're just costing money at this point. should we be happy that mark's a dreamer and is going to spend a lot of money doing all this? >> yeah, i think he's getting some leash, i would say, to run with his dreams right now, so here's the deal. i think -- and there were a lot of questions that came up on the conference call last night about, hey, let's talk about payback period, you're going to lose a lot more money next year in virtual reality when are we going to see a return on this investment, right? and we know there's probably no answer to that type of a question, potentially for several years, but here's the deal, so long as that core business and the expansion that they're running continue to grow solidly and driving margin

leverage, that's what's going to allow investors to underwrite these other projects because it's not impacting the earnings growth and certainly isn't an issue from a stock valuation standpoint so that's kind of the playbook i think that they're running right now. >> and it's the year of trying to rationalize some costs, i think and cutbacks but that's being offset a little bit spending on things you never know will necessarily pay off, but i mean he wanted to get all of harvard on facebook, right, and now, what's he got like 40 billion people on it he's a dreamer and he knows how to do it no, not 40 billion people in the world. >> who says it's confined just to this planet. >> just to this planet now we know we have dead bodies, dead alien bodies around. >> man, you guys are really thinking out of the box this morning. >> we do like taco bell.

thank you. we appreciate it and what a day. what a buy at $80 and change hopefully you were in there, you know, screaming at your clients, thank you. to buy >> thanks. >> and a programming note, meta's cfo susan li will be on "squawk on the street" at 10:40 a.m. coming up, chipotle shares are sinking. take a look. executives aren't ruling out raising menu prices again. it's about pricing now the details after the break. later, a bipartisan effort in washington to crack down on stock trading by government officials, we'll talk to the bill's sponsors that will happen in the 8:00 hour so much more on "squawk" as we roll on.

welcome back to "squawk box. chipotle shares, unfortunately, they're tumbling they reported earnings of $12.65 per share. beat estimates of 12.31, but revenue fell short of expectations higher prices for tortillas, dairy, beef and other ingredients. used to be volcanoes were the problem. avocado prices were down from the same quarter a year ago, last quarter chipotle said it was done raising menu prices but now the company's ceo sounded open to the possibility of more increases. here's what he said to jim cramer on "mad money." >> we've got tremendous pricing power so if we need to pull that lever, we can pull that lever. we'd kind of not be in front of where things are but understand where inflation is and adjust accordingly. >> same-store sales grew by

7.4%, shy of analysts' estimates. the stock is up, the context here, up more than 35% year to date shares of mattel are slightly lower they reported adjusted earnings of 10 cents a share. analysts expected a per share loss of two cent, revenue beat expectations, yesterday mattel confirmed rumors that the coo, richard dixon, was leaving the company to become the ceo of retailer gap dixon was responsible for the refresh of the barbie brand twice during his time there. pretty important we'll talk to ynon kreiz at 8:50 we'll talk to him not just about the "barbie" movie in hollywood but all the plans that kreiz has been putting in place to embrace hollywood. i think they have 14 movies in production 14 films in production with some of their toys and different brands we'll talk to him about how it pays off

with "barbie" there is expected to be a big halo effect but still to make sure that they are selling toys because that's the big way that they make their money on all of these things, and toy sales have been down post pandemic so we'll talk about all those things >> toys in this world with, you know, everything you can do on electronics. normally you have a product and then you can make a movie. it's weird to have -- this movie could totally go back and re-energize barbie sales >> it's a pg-13 movie and so it's really been marketed at older women. >> apparently people are bringing their younger kids. it's happening >> you know, i'm around amc a little bit now because i have someone that i love that is there working, so i'm there a lot. there are groups of ten girls.

they all look like barbie that are going at the same time to the barbie movie >> i saw it with "oppenheimer" the other day. the thing that shocked me about mattel i didn't realize they had 14 different movies in production that were -- 14 movies -- >> in development. >> i don't know where -- >> i don't to if we know if they'll get made. >> i was trying to figure out all the brands, matchbox, hot wheels >> hot wheels is one of them. >> trying to figure out the brands. >> i don't know if you remember. >> he has been doing this for awhile. >> their whole approach took a long time, though, for them to get barbie for this barbie film was in the works for many, many years. >> had to do it. yeah, yeah, yeah and had to do it right >> they went back and forth so the question is of these 14 films how long does it take to get there and then do all of them -- can each of them turn into a phenomenon? >> but it has been an amazing

turn for this company to see what they have done over time. >> every time i pick them up, it's in the car. smells like a huge vat of butter popcorn. >> you want to reach over and lick them. >> "madagascar" he looks at the lion and sees a big steak. i'll go in there and i'm not going to see a movie. >> get the popcorn. >> people do that. people go in there and don't go to a movie. >> that's a problem. all right, when we come back, senators elizabeth warren and lindsey graham teaming up on a new bill to rein in tech. a look at yesterday's s&p 500's winners and losers ♪ old school wisdom, with a passion for what's possible. that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan

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good morning, welcome back to "squawk box." we're live from the nasdaq marketsite in times square future, 90 points higher on the dow, s&p 500 looking to open higher as well, about 30 point, the nasdaq looking to open 200 points higher if we did so, still got a little bit of time to go. >> right, honeywell share, let's

take a look at what's happening. the earnings are out right now and looks like the company beat on the bottom line, came in with earnings on an adjusted basis of 223 versus the 221 that the street was expecting it looks like revenue is just about in line, 9.15 billion versus the 9.17 billion the street was expecting stock up by 1.2% organic sales up by 3%, and the company is raising the lower end of the guidance it had given for the full year before it now says it is looking for full year earnings of $9.05 to $9.25. earlier it said $9 to $9.25. street at $9.17 so already at the higher end of expectations running through a couple of the businesses on this, it looks like aerospace up by 3.4 that's been doing well for awhile building technology, $1.51 billion and that's another sector that has been doing well. safety and productivity

solutions, that's been the one that's more of a laggard, the business that sells automation equipment to industry and that sector has been under pressure as interest rates are higher but the sales for that division, $1.43 billion, again, that stock right now up by 1.2% >> meantime, senators elizabeth warren and lindsey graham introducing a new bill creating a federal agency to regulate big tech and emily wilkins got an early look and joins us now. good morning. >> good morning, andrew. well, lawmakers are escalating their war on big tech today with a proposed agency that would rein in giants like meta, amazon and google as you mentioned lindsey graham, elizabeth warren not two authorities you see working together a lot but introducing a new bill that would create a five-member commission to oversee major tech companies the regulatory group would have wide-ranging powers. among them would include renewing potential mergers and limiting how personal data is used in targeted ads warren told cnbc in a statement that many companies have

exploited consumer' data, invaded users' privacy, threatened national security and stomped out competition in the economy but that's not the only bad news for big tech today. a house panel is going to be voting this afternoon on holding mark zuckerberg in contempt of congress it's part of a republican-led investigation on whether facebook removed some content on behalf of the white house. chairman jim jordan has accused meta of not handing over documents his committee requested. a spokesperson said they provided the committee with more than 53,000 pages. andrew, while holding someone in context of congress doesn't have immediate repercussions, it's notable this stuff is usually reserved for contentious politician, not ceos >> so, we're going to have a couple of folks talking about this with us in the 8:00 hour. what do you think the chances are this actually happens? >> i think as far as getting through committee it's pretty likely to happen republicans control this committee. they have a lot of frustration,

not just with facebook and meta but a number of companies over what they see a censure of conservative speech and ideas, of course, a lot of these companies push back and say they are just trying to limit misinformation on their websites whether or not this can go somewhere in the house, i think is a good question certainly not going to go in the senate i don't see a lot of democrats particularly supporting one at this time but as far as this wider bill, it does show that there is a lot of bipartisan support for finding some ways to rein in these big tech companies, whether it's through a commission, through antitrust, lots of options out there. >> okay, emily, we appreciate it thank you so much. >> thank you southwest airlines reporting quarterly results early, i think. let's get to phil lebeau with the numbers. hey, phil. >> joe, we're down at southwest headquarters the numbers, they missed by a penny in terms of the bottom learn earning $1.09. the estimate was for $1.10 with revenue coming in better than expected at a little over $7

billion. a couple of numbers within the numbers in the second quarter which might explain a little bit about what we're seeing with the earnings falling a penny short passenger revenue are down 8.3% vasilevskiy last year with the average fare down 2.6% compared to the same quarter of last year you might be saying to yourself, wait a second. aren't we seeing record fares? keep in mind, they had a number of frequent flier and good will vouchers that were set to expire last year. they have extended those those represented about a five-point headwind in the second quarter that's why you see pressure in terms of the passenger revenue per available seat model cost per seat mile up 7.9% in the second quarter southwest also releasing its q3 guidance revenue per seat mile expected to be down 3% to 7% versus last year with the available seat miles down or excuse me, up 12% compared to third quarter of

last year and cost per seat mile is expected to be up 3 1/2 to 6 and a half%. lots to discuss with bob jordan about not only where the company is coming out of the second quarter into the third quarter but operationally, they had some real challenges at the end of last year and in the first quarter, started to turn things around in the second quarter, operations were much stronger. we we'll talk with bob about that coming up later on, guys, back to you >> yep, look forward to it, phil thanks coming up, the dow on a lucky 13-day winning streak. we'll talk strategy with mark mobius right after the break

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welcome back to "squawk box," everybody. take a look at the futures this morning. they are in the green. dow futures up once again, even in spite of the 13 days in a row we've seen of gains, indicated up by almost 50 points, the nasdaq is the big winner thanks to meta shares and the strength in technology. that index, the futures there is indicated up by more than 200 points and s&p up by 29.

joining us right now is mark mobius, he is veteran investor and founding partner of mobius capital partners and, marks, first of all, welcome. it's been a while since we've seen you do you have any money in the united states or are you still looking all internationally right now? >> no, i'm all international and emerging markets in particular in fact, i'm speaking to you today from korea and we have quite a lot of investments here in korea and a few weeks ago i was in taiwan, so taiwan and korea are really at the top of our list in addition to india, those are the three places where we're focusing. >> yeah, taiwan, korea, india, i've heard you even recently make some comments that china might be a good place to kind of dip your toe back in, as well, which struck me because the last time we talked to you, last time i remember talking to you was in march and at that point you were concerned about even being able to get your money out of china >> exactly, well, that's been

solved, thankfully but now we're looking at china in very specific ways and particularly looking at hong kong, listed companies, because those are the companies that are in terms of valuation look very attractive, but china still, as you know, is going through a tremendous adjustment, and it's going to be very difficult for many companies and, in fact, one of the things i'm learning here in korea and in taiwan is that these companies are also being challenged because a lot of their exports go to china, and, of course, they want china to thrive but at the same time they have to diversify their markets, so that they're not so dependent upon china. >> that sounds like a lot of reasons to really be cautious, you want to go into the markets but looking for what in particular, companies that don't export to china or have gotten good at finding alternative markets? >> the latter, in other words, we want to have companies that, of course, they do business with

china. very difficult for taiwan and koreancans to get away from china, but we want companies that are diversified internationally and finding a number of them with incredible technology so that they're able to diversion phi their investor base so i think it's looking quite good, but we're going through an adjustment period. that's for sure. >> warren buffett went into taiwan semi conconductor and it looked like a key loggerhead if you're looking at chips there but got out pretty quickly because he said he reassessed the concerns about what would happen if china invaded, i think. if there was a china situation in taiwan, that doesn't bother you? >> no, i don't see that happening any time soon. it just doesn't make sense from the chinese point of view to attack taiwan at this stage because they'll get, of course, a lot of resistance, as you know, the americans have built up bases in the philippines and

given more aid to taiwan so it'll be a very, very difficult situation, of course, if china attacks taiwan, of course, the u.s. market will disappear and they depend on the u.s. market so i just don't see that happening any time soon. >> so, why korea what do you see there? >> korea technology, incredible technology it's really amazing to see the developments i lived here in the 1960s when this place was in ruins, and now you have a very advanced society with incredible technology and many, many areas for example, we have one company that does cosmetic kind of work with machines that do treatment to your skin so you lose your wrinkles that's the kind of thing they're doing and it's quite interesting. >> did you try the machines out? >> not yet >> all right >> i need to. >> let's talk about india. you focused on india and that's

been something for several months now you've been pretty positive on. what happened in india a similar story with technology or is something else happening there, the beneficiary of companies looking to set up places to diversify from the chinese supply chain >> exactly that's the thing that's happening. you're seeing committees move to india away from china in order to diversify their investor base and the supply base, so you are seeing companies like apple moving to india to assemble iphones and that sort of thing but at the same time, more importantly, you have a population of 1.4 billion, which is more than china, and you have a growth rate which is 7%, which is one of the highest in the world. and a young population, so all these factors are having an incredible impact and now a lot of companies are waking up to the fact that india can become a very big supply base to diversify their supply chain

>> 10, 15 years ago i remember talking to ceos and the problem they would cite when it came to india versus china, in india things are very different, state to state, it was hard to get things done versus in china if you got the approval from the government you could move quickly and it would be across the country, you could do anything you wanted. has that changed has the indian sort of secular state by state problem where it's difficult to do things across those different lines, has that changed at all? >> you still have these problems, because each state has its own rules and because you have the national bureaucracy as well but it has cut away a lot of the bureaucracy for the express purpose of getting investors to come in and invest. more importantly, you have competition between the various states in india to attract foreign investment into their state so it's a very interesting development. you know, one state against the

other, which is great for foreign investors because they can sort of play one against the other. but you're getting a lot of these states waking up to the fact that they can really do a lot of good for their people to provide employment and growth, so it's very interesting look, you're dealing with a complex society, a democracy, it's messy, just as it is in the u.s. but the bottom line is that the growth is incredible >> i saw an interview you did maybe in the last month or so where you said you have about 15% of your investments in india. you'd like to get it to 20% to 25%. if that is a the case, where do you pull money from in order to invest in india? >> probably be away from taiwan, because we have a little bit too much weight in taiwan, but we certainly would not leave taiwan we just reduce a little bit. but that's the only place and, of course, we're getting money

coming into the funds which enable us to increase the amount we have in india the problem with india, of course, is that the performance has been very, very good, so some of the prices are going up a little bit too much so we have to be careful about that >> mark, thank you appreciate your time this morning. mark mobius. >> thank you okay, when we come back the fed raising interest rates to a 22-year high we'll talk about the money moves to avoid and the changes to consider making now, next. a reminder, listen or watch us live. right now any time on the cnbc app. we're coming right back. 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. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities,

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british oil giant shell reported a sharp drop in second quarter profits citing lower prices of fossil fuels and weaker refining margins. still able to earn $5.1 billion on an adjusted basis but that was below 6 billion. the company also announced a $3 billion share buyback that it will complete pretty quickly over the next three months shares of ebay are lower guidance came in weaker than expected and you can see they are taking it on the chin. shares today down about 6% meantime, shares of barclays lower, in line with estimates but the investment revenue dropped by 3%. barclays saying it expects lower margins, they're announcing a share buyback plan, $973 million and investors don't seem to like the plan down about 4%. samsung reported a 95% drop

in operating profit for the second quarter, 22% drop in sales from a year ago, slightly higher than the company's estimates, released early this month. in that release executives saying they expect global demand to eventually recover in the second half of the year and investors liking that news a little bit more. higher fed rates make financing your home, your car, and credit card purchases more expensive but they also mean greater earnings for savers. cnbc correspondent sharon epperson joins us with key money moves to make right now and, sharon, for savers it's like finally. >> finally something to celebrate. but the fed's latest rate hike does add more fuel to a series of rate increases that is impacting borrowing costs. according to bankrate, the 30-year fixed rate mortgage is now nearly 7%. new car loan rates are over 7% and the average annual perjury rate on a credit card is just above 20%. a record high that's forcing many consumers to carry higher balances

now, refinancing your mortgage or a car loan may be tough given where rates are right now but there are some key moves to make to deal with credit card debt. -year-oldly, of course, pay off credit card balances to avoid any interest on debt but if you can't swing that then request a lower rate or an apr if you don't ask you won't get it call your card issuer. also consider opening a 0% interest balance transfer card you won't have to pay interest for 18 month, maybe even more but you'll need to figure out whether moving an existing balance to this card is worth the 3% to 5% transfer fee. now, there are some silver linings like we talked about the fed series of rate hikes allowing savers to take advantage of rising rates, top rates on high-yield savings accounts are now over 5% and close to 5.5% for cds. even in a rising rate environment many say contributing as much as possible to workplace retirement plans makes sense. the maximum 401(k) contribution is $22,500 this year and with a

$7500 catch-up contribution if you're 50 or older, you could stash away up to $30,000 advisers also say that midyear is a good time to review investment choices, rebalance, make sure you're on track to meet your goals for the rest of 2023 and beyond. >> all right, so why is midyear the time to start looking through some of these retirement accounts, some of your personal finances on these things i always think of doing it like january. >> exactly but i think some people are just on autopilot, right? so they've done the same thing the year before, maybe looked at it in jiang, maybe they didn't realize their company has a roth 401(k) option that they could have some after-tax money going into their retirement account so may want to look into that and when it comes to other things that you may want to recalibrate even your take home pay looking at your withholding midyear is a pretty good thing so you're not surprised come next april when you get a big refund or owe so

those are a couple things you can do and plan for upcoming expenses now, because for those people who are going to have student loan payments this he'll have 0 pay in the fall, now is the time to look at how am i going to do that let me start making payments to myself to pretend i'm paying that bill. >> all good advice, sharon, thank you. sharon epperson. when we come back, quarterly reports on deck for mcdonald's and our parent company, comcast, we will bring you the numbers and the reaction on wall street. later, don't miss our exclusive interview with southwest air ceo bob jordan "squawk box" will be right back. i was told my small business wouldn't qualify for an erc tax refund.

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was not letting me run the show. so, we switched to verizon business internet. they have business grade internet, nationwide. (vo) make the switch. it's your business. it's your verizon. good morning a number of big earnings to break out this hour. in this hour we've got parent company comcast and fast food giant mcdonald's and weaver's got the numbers and market reaction straight ahead. the fed hiking rates by a quarter point to the highest level in 22 years. we will get a breakdown of what it means for your portfolio from market historian jeremy segal. plus, washington's legislative agenda to counter

china's aggression and growing control over manufacturing senator bill cassidy will talk about the china challenge. the second hour of "squawk box" begins right now. welcome back to "squawk box. good morning we are live at the nasdaq marketsite in times square working along with becky quick and joe kernen, we have a lot going on a whole bunch of earnings reports coming out u.s. equity futures at this hour, of course, we still have 2 1/2 hours to go before the market opens the dow up 52 point, nasdaq would open about 192 points higher and the s&p 500 would open up about 27 points higher joe. >> right, first thing to do is when comcast reports is to look at what's happening with the stock. so let's take a quick look

comcast out with quarterly results. the company reported $1.13 a share versus a 97-cent estimate and revenue was $30.5 billion. that was up 1.7% year over year. however, with the company like comcast multifaceted although there's kind of a new structure, andrew, that we were just -- >> it's really the reports now in three groups. >> connectivity and platforms, and content and experience >> right >> when you look at it, though, and people hate to hear about ebitda and free cash flow maybe the most important metric is adjusted quarterly ebitda and in this case for the first time in history the company was able to exceed $10 billion of adjusted ebitda up 4.2% and that is a record for comcast for

that now, in terms of analysts' expectations, above on many level, consolidated revenue, what we just talked about, adjusted ebitda, eps was well above, as we said right at the top, earnings per share. and then also here we go, connectivity and platform revenues which do you like better, content and experience or connectivity and platform? it does make sense there are two overriding themes. >> you got to get your head around it. >> it's a shift for the way the numbers are reported which makes it probably harder for some folks going through the numbers right now. >> the stock is up by 37 cents. >> the company is dealing with some -- like meta advertising is rebounding advertising is still kind of a drag to some extent on some of the businesses, some of the media businesses >> down 4.9%. >> yeah, down 4.9%

but then you got -- it was not always a bright spot, but wireless is suddenly a bright spot for comcast and it's growing in terms of how much it matters to the business then you always look at broadband, new customers, what happens with the legacy cable business down, what, another half a million it happens every quarter, 543,000, which was -- versus 523,000 in losses of this -- of video customer losses, but and it always -- the company always says the same thing, we are not chasing unprofitable subs. the peacock stuff, you know, streaming is so -- such a daunting thing to try to do. >> but it's growing big. >> i read it and it looks good in terms of the revenue the company was able to post from peacock and the number of people that added peacock and i need it because there's things on it and i don't mind the -- i like ads,

you'll see, andrew >> peacock paid subscribers, 24 million doubled year over year, revenue up 85% to breaking out a number, $820 million the other bright spot, theme parks and that was big too park revenue up 22.4%. adjusted ebitda, the theme parks, up 31.8%. >> i wonder -- >> now the stock is up by 2.1%. >> it's too early to say that the universal theme parks are getting any of the business disney theme parks are not getting -- >> fair to say the parks are crowded. >> the parks are crowded but, you know, a commercial break every once in a while, you'll see as you get older >> oh, you want the commercial break? >> you can do it to accomplish necessary maintenance, if you will >> i've been enjoying -- any of you guys have youtube tv now as -- i know you guys are in a comcast territory so you never would but i'm in new york city and i have moved to youtube tv as my platform for watching television over the broadband

connection which provided, i believe, by spectrum, unfortunately or fortunately now they actually have these youtube tv ads which say, here's a moment of zen, you literally just -- >> there's your bathroom break. >> for 30 seconds they show you trees in a forest. >> when i go to a place where -- >> they should show you what river. >> in georgia, it used to be directv and i was lost there were a thousand -- i couldn't find anything how do you get the local -- they switched to xfinity and it was like i went up and -- so i'm not a homer. i'm not trying -- i hug my xfinity and the nice -- have you seen the remote controls >> it's true no, everybody loves the service. the actual app. >> and that's a totally just nonbiased opinion. everybody -- >> apolitical view have apolitical view. it has nothing to do with who we work for. another big company out with

earnings mcdonald's reporting a beat on the top and bottom lines earnings came in at an adjusted $3.17 a share. that compares to just the $2.79 a share the street was expecting. revenue $6.5 billion versus an estimate of $6.27 billion. they had higher menuprices and higher traffic in the u.s. and that helped same-store sales grow by 10.3%. global same-store sales were up by 11.7% check out that stock up by 2.2% that's some help right there dow futures up by about 54 of course, the fed hiked rates for the 11th time since it began the tightening cycle 16 months ago left the door open to more hikes, but it's not a given. our next guest said this should be the last rate hike of the cycle. for more on that we want to bring is kelly barrw at jpmorgan asset management you think this is it this is the last hike, nothing

the rest the year. >> we do think this is the last rate hike so when i listened to chair powell's press conference i had three maintainingaways, one they view policy as it currently stands as already restrictive, how do they know that they look at the real policy rate adjusted for inflation. that's moving up as inflation continues to decline the real policy rate continues to rise. that makes policy even more constrictive second, credit conditions are tight and getting tighter. so one thing chair powell has right now that we don't is the senior loan officer survey for this quarter he said that he saw within that survey that credit conditions are title and getting tighter. that's consistent with what we've been seeing. the new york fed do a survey of credit access. they showed last month that auto loan rejections were the highest on record. that's going back to 2013. so credit conditions tight, getting tighter. what's the third thing i took away forward guidance is dead or

let's just say playing dead. right now the fed doesn't want to give us any forward guidance. they want us to look at the data, same as them initial claims this morning, gdp this morning, eci, pce tomorrow, they want us to look at the data and assess just like they are do we need more hikes our assessment is they'll look at that data and when it comes to september, they're going to see that growth is continuing to moderate the labor market imbalances between demand and supply are evening out and inflation, most importantly inflation is coming down >> but powell was also pretty clear yesterday that 2%, there's no wiggle room they want to get back to 2% and we could be a long way from 2%. >> yes, we are still somewhat far away from 2% but i think -- >> inflation, i should say. >> yes, exactly but at the same time, we have made a lot of progress we were at 9% last summer on headline cpi we're now down to 3% and when we

go through the categories, food, energy, goods, shelter and then services outside shelter and we look at those leading indicators they're really all pointing to further disinflation at this point. >> so is the bond market right because the bond market is calling for cuts either later this year or early next year is the expectation on that that's -- even if the fed stands pat that's a long way from rate cuts. >> the fed isn't ready to talk about rate cuts, but we can look back at history and what they normally do and what happens is when they start cutting they're generally fairly aggressive so you look back at the last six rate hiking cycles, on average the fed cut 200 basis points in the first 12 months. >> if we are going to be aggressively cutting rates it's because there is a problem and the economy has gone into a deep recession. some other credit crunch or other banking financial issue that's come into play. you think that's what's going to happen >> that or the labor market weak

pe weakens more materially. watching the layoff data, watching initial claims, right now what we've seen is this very gentle slope downward in job growth we were at 500,000, 400,000, 300,000, now we're closer to 200,000 on job growth. that's still above the break even rate so that's still putting downward pressure on unemployment but look at the trends underneath the surface. things like hours worked, hours worked has been declining now for a number of months, typically you don't see this large a decline in hours worked unless we're going into a more material downturn. >> go ahead. >> i was going to say. i was looking up your background you're so good at this but i just couldn't help but wonder, what caused you to get so good at this, at such a -- i don't know, it's a weird thing to be really in love with following these nuances of the fed what prompted that >> well, i mean, for me listening to the press

conferences is kind of like a super bowl >> wow, i love that. i love that. so my question was going to be, so we have a huge economy, huge. but the i.r.a. and the infrastructure percentage wide is not that big a deal but it will cause a lot of people to get hired and a lot of projects to be started and it'll keep that part of the labor sector, you know, you'll be able to demand better wage, strikes, we're seeing it right now. you'll be able to ask for more money. is that big enough to cause the labor market to stay tight that's what kaplan said the other day. this will be two or three years of spending. >> two point, one is that this effect will be spread out over time it's not like one big shock like you had with just handing out a stimulus check and everyone going and spending this is going to be a slow burn. but i think more importantly, capital deepening is not inflationary so what they're doing by

investing is going to help our product. >> down the road. >> down the road so i think that, you know, the difference between, you know, the strength in business investment is the difference and the impact it has on inflation so rather than, you know, these fiscal impulses we had during the pandemic which were very inflationary, the i.r.a. and the c.h.i.p.s. act are going to be, you know, net positive for growth but not necessarily inflation which is good news for the fed. >> you and liesman look at each other and have this un understanding. you both nod you're both just as excited about this stuff. >> it's fascinating. there's history, there's markets. >> politics. >> there's politics, yes >> all right >> you didn't talk about the politics of it, though i wonder whether -- >> she did and right there, i didn't like what she said. it was very positive these things could be good down the road these things that the biden administration did. >> yep, well, i mean i don't look at it by administration, i

just look at what's been passed. >> picking winners and losers with c.h.i.p.s we're transitioning to an energy future that we have no idea if it's going to be successful or not. we'll spend a heck of a lot of money and i don't like when the markets themselves now that we've made it that the markets themselves aren't deciding who the winners and losers are the government is trying to decide and typically they don't know any better than the rest of us, right? >> yeah. >> well, you just said they do know better and it's a great thing and productivity will go up >> well, all -- i'll approach it the way the fed does. >> it's keynesian. so do interest rates and so does debt service and no money is left for anything else, right? am i convincing you? no >> we're getting there >> all right kelsey, thank you. it's a lot of stuff. on monday former u.s. ambassador to the united nations and presidential hopeful nikki haley joins us and has this to say

about her relationship -- no, not with us, but with china. here it is >> china only plays with a winner take all scenario they've never played by the rules. they don't see us as a competitor but an enemy. this is the biggest threat we've had since pearl harbor >> up next, senator bill cassidy will talk about his legislative agenda to counter china's aggression, it says here, "squawk box" will be right back.

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when you wave bye to the other guys. save hundreds a year over t-mobile, at&t and verizon. and now, trade in your current phone, and get up to $1000 off the new galazy z flip 5 and z fold 5. welcome back to "squawk box. new bipartisan legislation and the senate hoping to create and expand u.s. partnerships while countering chain's growing control over manufacturing jo joining us is senator bill cassidy along with michael bennet, the sponsors of a new bill senator cassidy, walk us through this bill and what the chances are of it getting passed. >> the united states has not had a coherent policy since latin america since jfk and every administration kind of lurches one way or the other in the meantime, china has come in with debt diplomacy,

corrupting local officials, you know, buying a sweetheart deal on a contract which then creates unrest among the people affected by it and in so doing erodes, you know, the country's integrity, creating instability, releasing waves of immigration to the united states we need a coherent policy. michael and i put up something called the america's act and it's got like four pillars if you will, corruption is a huge issue in latin america we put in an e-governance system patterned after greece greece began to pay all taxes to permitting on line and lowered marginal rates but increased their receipts because they began to actually track things online we can do that in a country like gat mall ma len people could more likely get a permit for business and therefore more likely to pay tax, i could go on secondly, to encourage investment we think that if you begin to squeeze out the corruption,

there will be more foreign direct investment. as you do that, that increases trade. lastly or not lastly but another component, we would allow countries that met certain criteria to bolt on to the usmca and now they could trade not just with the united states in a bilateral relationship but in a mu multilateral relationship which would improve their economy, make it more stable and make people more likely to stay there as opposed to migrate to the united states and i could go on, andrew, but that's a nice start. >> senator, explain this, though explain the connection between this proposal that you have and we have it on the screen right now, it says con fronting the china challenge. how interrelated are these two things >> very interrelated i heard a general say that if a young recruit needs a car, he's going to buy the car even if puts him deep lie into debt with bad terms so there's countries in latin america that are

turning to china for financing of projects, the chinese will bring in chinese workers, and it doesn't leave the country better off. in many cases the construction is shoddy but the country is left with bad debt now, the only place you have to turn when you need help is china, you'll turn to china. this is a way to use good trading relationships, to structure reform within the country, to create an environment where other countries will come in including the u.s. in a more positive way, not with debt diplomacy, not with corrupting local officials but by actually making a stronger structure of government and the economy. >> senator, we have nikki haley on the broadcast earlier this week and we've had a lot of folks on recently, especially among republicans but increasingly democrats, as well, who are uniquely or maybe it's no longer uniquely, very specifically hawkish about china. very, very hawkish about china i thought nikki haley's comments

suggested she's concerned about almost, you know, an imminent war but a real sort of sense that problems are coming and coming very, very soon do you have any perspective on how you would effectively try to prevent that if that was the case and is there any way to create a more stable relationship >> i think so. we need -- china is a frenemy, a competitor that will challenge us militarily but there is a way to defuse it so, another thing that we're proposing to address, the china situation, if you women, is a foreign pollution fee. right now china just emits all kinds of air pollution they do not enforce environmental regulations, it's actually cheaper to manufacture in china it is an incentive to move there. a cfo said he could get 18% to 19% return on investment building there because they told him he did not have to turn on

his scrubbers. he could not defend taking a lower roi building here, having to comply with our environmental regulations, okay? let's impose upon china the avoided cost of them not complying with environmental regulations. if you bring over a carbon intensive product, okay, you are going to have to pay a tariff that is equal to the regulatory cost of compliance in the united states for that particular product. now, we'd like to swap out e existing tariffs but you would make it a tariff which is directly tied to their lack of environmental compliance that gives them a positive incentive to begin to lower their environmental footprint, but it also strengthens our economy and i think -- i think begins to equalize the relative imbalance of things. it's a positive. >> one last quick question which

is you're trying to end corruption in some of these other countries and talked about sort of the example of greece and being able to collect taxes and i'm so curious whether you think you would apply some of the things that are in this proposal to those of us here in the united states, because we have so many both loopholes and we have an electronic system but, boy, does that system not work and the way to audit and make sure we collect the taxes we need, what do you think of that >> i think there's many ways we can apply this so, for example, one thing we envision is instead of having to pay somebody under the table in a latin-american country to get a permit to open your business, you would do it online we should do that here in the united states. you can do so many things online that you don't have to waste your time to go tan in line. now, we don't have to pay a bribe here typically to get a permit but there's still the opportunity cost of having to stand in line. there's a lot of things we can do in the e-governance situation that will make our society more pleasant, more efficient. >> senator cassidy, want to

thank you for joining us this morning. >> thank you, andrew we got a lot more coming up on "squawk box" when we come back >> announcer: today's aflac trivia question. which state has the most man-made lakes the answer when cnbc "squawk box" connuties now there's 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

>> announcer: now the answer to today's aflac trivia question. which state has the most man-made lakes the answer, oklahoma with 200. welcome back to "squawk box. elon musk this week announcing he's rebranding twitter, the social network which musk revealed is still losing money will be known as x this comes as rival meta revealed its earnings report yesterday that it's making a lot of money the question now, is elon making the right move with x? guess who is here to weigh in. the one and only jon fortt >> hey, andrew, i mean, no, the x rebrand is obviously dumb. fortunately for elon he's the richest man in the world thanks to his track record building things that are social networks so even the dumb things he does has some people saying, you don't get it

he's a genius playing 3d chess here's why he's not this time. we know he's had a vision for an x everything experience since he launched the x.com bank nearly 25 years ago bought by paypal. probably easier to stomach paying $44 billion to make that a reality than just owning twitter and struggling to turn it around but practically this brand move doesn't make sense. twitter including the little bird logo he killed are globally recognized brands. since elon still wants x to do that he should have made twitter a subsidiary of x like google is of alphabet to maintain good will and could have built x around it and folded twitter in. saying he's building a company that does communications, payment, subscriptions, that's what google is i personally never said i love google, i wish all of them would be in one app like china does it that actually sounds awful, andrew. >> reusable rockets, right, probably sounded awful to some

people 25 years ago and thought that's crazy, it's never going to happen, never going to work >> well, yeah. andrew, on the other hand, a lot of people just don't get elon. he's like a genius playing 3d chess with this x move is it crazy. that's the point meta just launched threads at the beginning of this month, a direct threat to twitter and that's the perfect motivation for elon to go bigger and more ambitious with this x business strategy mark zuckerberg's meta generated 11 billion in free cash flow last quarter alone with his instagram helping threads get 100 million sign-ups in its launch walk zuck's advantage is cash and infrastructure elon's attention and far easier time recruiting at x than recruiting troops to help survive an endless siege at twitter and that narrative is important. twitter was a social network that lost to zuckerberg and where elon laid off most of the staff. x has never had layoff, never lost to anyone twitter's a turnaround

x is an electronic car, reusable rocket and brings me to the last reason why this had to happen. since ancient times commanders have ordered them to burn the boats when they land to make clear it's conquer or die. by burning the twitter brand with all its baggage he's forcing himself to build the future here. >> okay, but if he's not building an ad supported social network why did he bring in the new ceo? >> both of these are bad for her. >> can i say i'm not nearly as down on twitter as it seems like everybody -- seems like it's a mess over there and i get what's happening here >> i think it's better than ever >>no, no, i'm thinking as a product, the physical product part. >> it's great. >> feature -- >> i don't think so far at least it doesn't appear, i mean, you can tell me whether you really think the numbers are the numbers, or which of the numbers are true, doesn't seem like

everybody has moved to threads or some other place. in fact, it looks like they're losing, so the real question to me is can they get advertising back which goes to having a brand-safe environment that's the fundamental question. >> to me that all ties back to the awe trent indication you shouldn't have topay for it the idea they're telling major brands unless you pay x amount we'll take away the blue check mark, give it to brands you can verify and don't make it so easy to copy. i have a hard time figuring out what's real and what's not if they just went back to the original blue checkmark, give the to brands and business, give it to verified people, i'd be happy. >> great brand value in the little bird, tweet, tweet, but it's also kind of a frivolous little nonserious, nonmoney making thing that x entails everything -- it's so anyone louse and nonscript, it can include everything that we're talking about. >> like google what does that mean?

>> i think it's a risk with the ftc as active as this ftc has been, look out if you're making it easy for people to copy brands and companies and trick people, that's a problem >> most important now, the newsletter how are you going to read the argument if you don't get that there's the qr code, where is it on the screen? let's put it up. >> not yet it's coming. >> it's coming because i know you have phones ready. where is the qr code put it up. there it is. or you can just type in cnbc.com/otoh and gets you to a poll on linkedin the last one was on affirmative action, yeah, no poll on that. you know, we don't need to have that argument online but you can weigh in on almost everything and let me know which side you agree with more. >> to do all these things, you know, he's not going to want to necessarily spend his own money or from other companies, so linda will have to generate the revenue to effect a lot of

these. her job is just as important. >> just as important except it's the unimportant thing that is getting harvested to build the future. >> always going to be sort of the core i mean, i wish i -- i can't quit twitter. i wish i could quit you. i wish i knew how to quit twitter but i don't know how to quit twitter >> i know. >> you know, for awhile i couldn't get back on after i switched phones and for a second i was thinking, you know, who cares? >> just forget it? >> that didn't last long. >> go figure media buffs like us. >> who would have thought? jon, thank you. still to come, stocks on the move on this thursday morning plus more reaction to the fed's rate hike. wharton professor rejemy siegel will join us next.

welcome back to "squawk box. i'm dominic chu. we have a lot of earnings movers premarket. we'll kick things off with a check on cnbc parent company comcast higher by just around 2.5% over 30,000 shares of volume after the cable broad band and media conglomerate posted better than expected profits. it was helped along by its ability to raise prices to

counter the drop in subscribers. also, check out shares of mcdonald's the quick service restaurant giant up right now north of, oh, just around 2% or so, around 50,000 shares of volume driven by a profit beat and a revenue beat as well also better than expected sales growth at established restaurant locations around the world now in north america specifically sales were helped by mcdonald's grimace mascot's birthday meal menu options and promotion. diners just continue to look towards budget-friendly options so mcdonald's shares up nearly 2% shares of southwest, though, moving in the offense direction lower by 6%, just around 200,000 shares of volume the budget-friendly airline reported mixed results profits fell shy as costs continue to rise, southwest blamed tough comparisons from last year's travel surge and, by the way, we will get much more on that story in the next hour when southwest's ceo robert jordan joins "squawk box" to go through the results then we'll end with a check on 3m

those shares are down 2% and 25,000 shares of volume. the diversified industrial giant got a lot of headlines related to not just earnings but also its proposed $10.3 billion settlement to resolve claims over forever chemicals possibly in water supplies. a group of 22 u.s. states and territories are now plouffing to block that settlement alleging the deal fails to hold 3m fully accountable for those forever chemicals. 3m says it will continue to work cooperatively to answer questions about the deal, joe, so 3m continues to be in the news right now down 2% i'll send things back over to you. >> all right, dom, thanks. the dow looking now to extend its 13-day winning streak, the longest since 1987 and back then a gallon of gas costs 90 cent, gallon of milk costs $2.28, the median home price was $104,000 and the top grossing movie was one of andrew's favorites, "beverly hills cop 2. you liked 1.

>> i think 1 was my favorite, possibly one of my favorite movies of all time. >> i know, you have said that. and for more on the market's longest winning streak let's bring in jeremy siegel, professor of finance with the university of pennsylvania's wharton school and, jeremy, i look forward to speaking with you, because i don't think you're ready necessarily to give jay powell like a nobel prize in economics, but i think you're coming around a little bit and you've been a big critic of how tight the fed was and how loose the fed was, but now you're changing a little with maybe the notion that they could have orchestrated something pretty good here? maybe in spite of themselves but maybe they're orchestrating a soft landing >> yeah, joe, this was the best news conference i heard from jay powell in over a year. i mean, he virtually came close to saying there's balanced risks

out there. not quite. still a little more on inflation but acknowledged that there were potential downside risks he became very data dependent. he talked about -- which he should be, you know, i know there's a couple of doves in voting members, you know, maybe austan goolsbee, maybe pat harker, a few others who said there is some downside and seems to acknowledge it. it really was very, very encouraging and another reason and you're right that i shifted a bit of my opinion is i'm looking at forward looking indicators the money supply has stopped going down commodity prices have stopped going down housing prices measured by the index and the federal indexes have stopped going down. they've turned around and stabilized so those very high rates that

scared me and the market earlier on in the year don't seem to be having as much of a negative effect as i had feared and that combined with the fact that powell now is saying, you know, i'm going to look at both sides of the equation, i think that's very positive for the markets. >> pretty amazing, jeremy, and thinking back on all the conversations we had when you wanted the fed really to not go any further, i mean, there was a pause. there were small increments, not 75 basis points anymore. so there was a pretty sharp, certainly the second derivative slowed and you wanted maybe no more, but they didn't -- they were cognizant of not going too far or doing too much damage i will tell you one thing you nailed and you've been criticized in the past for being impermeable. when the dow went from 780 in 1981 to where it is now, let's

see, should i be a permeable -- maybe that's a good way to be. you've been criticized for that but you nailed the october lows. you said this is -- we're going higher it's not going back to test them and you've been saying that all along. >> yeah, you know, absolutely. i mean, i just didn't see anything that smacked of a recession >> an academic outperformed all of the highly paid cell side schmos on wall street basically. >> yeah, yeah, although, i am fairly surprised, you know, at the upside again, i thought maybe 15% this year, now we're closer to 20 and going up, now, you know, we talked about the fact that the so-called cyclical and value stocks which now i think have an opening, because i think the soft landing scenario is definitely more possible than i or if you want to know the truth

even i think even chairman powell's surprised at how little effect there has been on employment so far. the fed still has to be very alert. it still has to be looking at all the indicators and that's what he said he's going to do. we are coming in and all know this coming into an election year of the biggest thing is going to be if he lets that unemployment rate go up if we get weakness in the labor market, that's going to have more devastating effects now than inflation, which is mentioned less and less by the public as a problem. so, you know, the politics of the situation is he's got to look at it it's a dual mandate situation. he's got to look at it if he responds to any weakness in that by stopping rates and maybe even lowering them, although i'm not as sure we need it now with the turnaround in

sensitive indicators, then i think we're in a pretty good place with the markets much better than i had feared last march or even last june. >> yeah, i mean, we were stuck in single mandate land for awhile. >> yeah. >> that was one of your criticisms and now it seems like he's given some equal weight to the other side and good to hear the fed chairman, they would never say we want to cause a recession but sometimes they kind of say we need to raise unemployment to get to where we want to be on inflation. what a perfect goldilocks -- it almost sounds too perfect but so far so good, 13 straight days and see whether we get 14. good to have you on. >> looks that way. at least in the morning. i mean, the market looks strong. i think we're going to get above 14 today. >> the nasdaq, i know, meta. all right, jeremy, thanks. >> thank you, joe. moe's "squawk box," it's joe's "squawk box.

moe "squawk box" after a quick break. mo better.

still to comet that platforms reporting upbeat

guidance it's up 9.5% and according to robert frank mark zuckerberg made another $10 billion overnight just based on the performance of this stock. we're going to break down the numbers for meta and tell you what it means when we come back. also, check out shares of chipotle earnings beat but the revenue fell a little short. higher prices for tortilla, dairy, beef put pressure on profit although avocado prices were down from the same quarter a year ago that stock under some pretty severe pressure this morning, though, down 8.5%. "squawk box" will be right back. old school hard work meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas.

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meta reported better than expected earnings yesterday announcing double-digit growth for the first time since 2021. and mark zuckerberg touted the launch for instagram threads as an area of excitement under a major rebound. >> on threads briefly i'm quite optimistic about our trajectory here we saw unprecedented growth at the gate and more importantly, we're seeing more people coming back daly daily than i'd expected and after that we'll focus on monetization >> and zuckerberg pointed out at

the end they're not thinking of monetizing this for a long time, until they have a billion users but there was a serious jump in the ad revenue, barton what happened? >> i think what we're seeing it the ad markets were covering, which is amazing to me given where interest rates are if you would have told me we would have had this much kind of head wind macro-wise, i would have struggled to believe you they were up 12% in the june quarter and pacing for 20% in the september quarter. they're also doing innovation. threads is not driving revenue right now but reels is, 10 billion annualized versus 3 billion a year ago and they were pacing over 10 billion annualized but online commerce advertisers are coming in and so

are advertisers in immediate why and entertainment and consumer product goods companies. chinese kind of commercial, advertising on meta to sell products out of china into other countries. that all speaks to a consumer that's spending. digital gaming is back things are happening that are amazing in terms of the macro. >> why isn't that playing out for platforms like snap and twitter? if things are so great how come we're not seeing it other places >> for snap and for the smaller platforms part of what we're seeing is it's great to be big in this environment. big allows you to invest at scale in refashioning your ad platform, which everyone has had to do after apple's app transparency a couple years ago and a.i. takes a lot of

investment and snaps couldn't absorb that without some hit to ebitda so making a ton of money and throwing money at things that are much beyond the scale of smaller players like a snap. >> so if you're not investing now, you're not going to be able to keep pace sfli >> i think you have to make these investment and fortune favors the big and a.i. ad platform takes capital and clearly meta can absorb that much more comfortably than someone like snap right now. >> if you're looking at what happened to the meta verse, is that just stuffed away in the attic at some point? >> i think they're going to come out with a new headset in

september. it's a really big kind of deficit in a p & l and i think he should really rethink this. he can absolutely pursue reality but he should do that through a separate company and if he did,he'd unlock huge shareholder value if he just changed the capital structure. doesn't have to do anything in terms of his aspirations he doesn't indicate any intent of doing that but if he did, his shareholders would be largely rewarded. >> what does elon musk want to do with twitter? i don't think he wants to add any more of his own money. how does he get more money to invest in these things >> it's a head scratcher and, you know, a lot of steps there i think are not what i --

would be my first idea to change the brand to x from twitter and go throughout the sales calls of advertisers. so head scratcher, they don't cover it anymore so it's elon's play thing the way he's playing with it is a little bit baffling to me. we'll see how it works out >> and to clarify, you have a buy rating, the stock is at 327 right now? >> correct >> barton, thank you >> great, thank you. >> programming for you, meta's cfo -- >> who is susan li >> is going to be joining "squawk on the street" at 11 a.m. eastern time. >> coming up, bob jordan will

talk results and will the barbie maker be short lived? "squawk box" will be right back.

good morning the dow aiming to tie its

longest ever winning streak, a positive day today would be 14 in a row and the index getting some help this morning from mcdonald's earnings the nasdaq higher on skyrocketing new shares of meta. also we'll talk toys and the barbie movie with mattel ceo we'll speak with the bipartisan spare spearheading that effort the final 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. it's 8:00 now on the east coast. and it's thursday.

just saying. >> best hour of the week you're saying >> well, we have one more hour today and tomorrow's friday. ♪ it's friday almost ♪ >> the dow is on a 13-session winning streak, back to three mondays ago. that's the longest streak. i hate saying this >> you think you're going to jinx it? >> i don't like saying 1987. >> why >> because i have horrible memories about 1987. i remember every detail. the germans wore gray, you wore blue i don't know if you recall that. "casablanca. >> and remember when a beverage cost 90 cents. >> that was a great vibe you got to admit >> longest streak since not

1987, 1897 >> 125 years if they go one more time, which tells you how infrequently this happens. hold your breath, man. >> where was google trading then >> a little lower than it is today. 1897 what stocks were trading then? >> railroads maybe >> was ge? >> maybe >> at&t -- well, ma bell i don't know let me look at what i wrote down >> the dow -- could the dow really close down with the nasdaq up 200? i don't know it's possible. >> crazier things have happened. >> i'm sorry, i'm looking up dow components from 1897 >> there was no dow. when was charlie dow >> 1896 was when the dow was first created in 1896.

allied chemical, american can, american smelting, american tobacco, atlantic refining, bethlehem steel, general electric, general motors was there, general railway, goodrich, international harvester, international nichol, paramax and sears was there standard oil, woolworth, history lesson for you we do have earnings driving the markets today. we want to get right over to dom chu. >> and 1897 is when william mckinley was still the president of the united states >> this is 1928. the first dow jones industrial average, the first index for stock activity was made in --

>> there was only a handful of them back in 1896 when the dow was first started. it's a good 14-day winning streak nonetheless there's a lot of stuff going on with regard to the earnings side of things. the stock that's probably getting the most attention on the trading desk is going to be meta platforms, which was up about 8.5% when i walked in the office this morning. it's up nearly 10% right now, over 1.1 million shares of volume the parent company of facebook, instagram, what's app and now twitter threads, it gave a rosier outlook for current revenues, which might indicate for meta there's a smaller rebound so meta platforms is driving that narrative up about 10%. and cnbc and nbc, over 50,000

shares of volume, the cable and media conglomerate we would also point out that streaming service peacock doubled the number of subscribers compared to the same time a year ago. so comcast a bullish report for our parent company and honeywell is just about unchanged right now. it's been jumping around premarket, only about 15,000 shares of volume, mixed report of beat on revenues, revenues missed, a beat on earnings but honey well was helped along by demand and vimal kapur will join at the 8 a.m. eastern time hour.

i'll send things now back over to you >> thank you very much he'll check in with you a little bit later and phil lebeau joins us right now with a special guest. >> thank you, becky. you missed on the bottom line by a penny, you beat with revenue but some are looking at your razzim number. what happened? >> a big piece is the year over year impact and head wind with a change in policy we made last year to extend travel vouchers and flight credits that would have expired because of the pandemic and we said basically you can use those forever. so there's about a $300 million year over year impact, so you have to take that back when you

look at our 8.3. >> you're expecting passenger revenue to be down 3 to 7% are you losing pricing power right now? >> no, we're not the quarter was great. we had really solid profits, record operating revenues and predicting record revenues against, rapid engagement on the rapid program. a lot of it is as we get all our aircraft fry flying, that extra capacity is really putting pressure here in the third quarter. >> you're talking about all of these records that are being set in terms of capacity and demand that is out there. you made a point before we started, you're expecting the demand o to be as strong continuing into the holidays as what pure seeing right now, right? >> we are seeing really small

demand record passengers, record rapid awards signups and at this point in the quarter we are booked about 70%, which is ahead of where we would typically bein the third quarter at this point. as far as i can tell we see really strong demands for southwest airlines >> and yet your costs are up at the same time, correct >> they are but a lot of that is labor rates. we are fully accrued to market as we know it. so most of that increase really is labor rates and labor accruals >> speaking of labor, the pilots are asking to be released from federal mediation. and they basically have said, look, you guys are not negotiating in good faith. can you get a contract done with the pilots >> we will absolutely get a contract done. i'm not going to negotiate here obviously. it's a complicated process, we are at the table nearly every

week at this point but we'll get our contracts done we want to reward our people it's a great time to be negotiating as a pilot you know where the market is and we'll get our contracts done we've been able to close seven contracts in about nine months and i'm just really proud of that >> as you look at the schedule and what you're seeing for booking trends, you're going to be making adjustments next year. explain that i think people are a little bit concerned, wait a second, they're pulling back on the frequency of flights here. basically you're adjusting to the new normal, correct? >> we are. and i'm proud that we'll have our full network restored by the end of the year and get all of our planes flying by the end of the year the network is not optimized we are seeing changes from prepandemic. >> give me a travel.

>> the business industry is recovering but they're lagging the schedule would fall from about 61% of trips and moch some trips to long haul we're going to reduce the number of flights before 6 a.m. really early, after 10 a.m. very late and that would come down to 2, 3 points >> given the promise you had at the end of last year with the schedule meltdown how do you feel about the investments that you made and improvements you're seeing in. >> i am just so proud of our team we had issues in december but we went to work to make a plan to make sure it never happens again. it's unvestment and it's showing

up in our performance. we had the lowest cancellation rate in a decade for our customers. so we got our cust mr and that was a lot of that. we almost had weather record >> i've gotten a few who have asked me what's going on with southwest revenue? thank you for that we've got a lot more coming up on "squawk" this morning plus we're going to speak we'll ask the ceo of mattel how much the barbie movie is taking away

profit >> and leisure travel is up 8% right now. you're watching "squawk box" and this is cnbc 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. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

welcome back to "squawk box. we are awaiting the latest late decision from the european

central bank you can see the dow futures up over 100 points. it has been 13 days in a row that you've seen gains for the dow. if you see another one today, that's 14 days if that happens, it's the first time the dow will have seen a 14th day winning streak or session winning streak since all the way back to 1897 s&p up 32, the nasdaq up by 225. other indexes are catching up, though again, some of the strong earnings that we've seen with technology, particularly meta, that's been helping out with the nasdaq look at what's been happening with the treasury market looks like the 10-year 3.8%. right now we're getting the ecb rate decision. we want to go over to steve liesman. >> the ecb raising all three

rates by 25 basis points, now at 4 1/4. what it says about future guidance, the big question it is ensuring interest rates will be set at an efficiently restrictive level to see a timely return to the 2% median target this will preserve effectiveness of monetary policy not much here in terms of actual guidance, becky. i think i'm going to kick it back to you and read the statement a limb ttle more carefully. the question was what they would do in september. the market was pricing in another rate hike. it may be that lagarde takes a page out of powell's play book, which is to give much more of a wait-and-see attitude. we know the european economy has been weakening, however, they

have still strong inflation so they have this problem ecb is simply a one-mandate bank, which is just the inflation mandate so they're pretty much required to follow the inflation trail more than they are the growth trail. and of course coming up in a few minutes here, we have the u.s. economic growth numbers coming out for this second quarter expected around 2% so we'll see in the press conference if lagarde takes that page out of powell's play book and says, you know what, we'll wait till the data come in becky? >> steve, thank you. >> coming up, breaking gdp data plus a postearnings interview as barbie continues to hit at the box office and talk of giant hershey posted

mixed earnings, better than expected per share but missing on revenues. stay tuned you're watching "squawk box" on cnbc what do you get from the morgan stanley client experience? listening more than talking, and a personalized plan ♪ to guide you through a changing world.

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join one key to earn and use rewards across expedia, hotels.com, and vrbo. mcdonald's out with second quarter earnings a little bit earlier. the stock is moving higher a drop in revenue estimates,

china sales rebound in the quarter. joining us is jeffrey bernstein, restaurant analyst what do you make of these numbers and what do you think it says more broadly about both the sector and the broader economy >> good morning, andrew. the results from my call this morning were better than expected across the globe, double-digits costs in each region driving earnings up side. i think we've been pleasantly surprised. the restaurant industry is doing extremely well thus far this year it tells us the consumer really does appreciate and treasure food away from home. while they might give up on other big ticket purchases, you have to eat and you have to eat every day. if you choose to trade down to a lower priced offering, that's exactly where they're sitting. >> how much of is this an operations story, you think the management team is executing the

strategy, if you will, and how much is a macro economics story, in which case i don't know if it's good or bad >> great question. at the moment it's a management led strategy and i agree with you that would be a negative for the macroists. i don't think that's yet been the case we've heard from restaurants holding up extremely well. thus far i don't think the primary driver of mcdonald's success has been consumer trade value. >> the opportunity for them to raise prices, they've already done so, we heard from chipotle ceo saying he thinks they may have to. do you thing the customer, the

consumer, can bear it? >> i do think tide is turning quickly. especially food at home, supermarket prices are no longer above away from home so the consumer does have a potential option but i think mcdonald's will talk it out this morning on their conference call. they are very adamant that they want to stay conservative and food at home if at all possible. i think they all really need to be conservative right now. the restaurant level probability is really and they don't take enough credit to off that inflation. it. >> fair enough jeffrey, we appreciate your time and perspective on this. when we come back, we're going

to talk about, whether, whether government officials should be able to trade or not senators kristin jill i brant and josh hawley will join us we'll come right back. 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. i'm still tasting what's next. even with higher stroke risk

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coming up in just a moment, we've got the first look at second quarter gdp stick around, we'll be right back

welcome back to "squawk box" right here on cnbc

we are just seconds -- really about 40 seconds away from new economic data. second quarter gdp futures ahead of it likely to change 95 points up on the dow. s&p up about 33 points i want to get over to rick santelli standing by at the cme. the numbers, sir >> we're a few seconds early but we have a litany of numbers. initial jobless claims is always a good place to start. seconding 235,000, 221,000 to find a number lower you have to go back to the second week of february 2023. continues claims a very similar story. a big drop we're expecting 1.75 million and we end up with 1,690,000

to find a lower week you have to go all the way back to the last week in january of this year and you can see yields already moving up on those particular data points. gdp, better pan expected that is the best start since the last quarter of last year when we were at 2.6%. consumption, though, a big drop but it was expected. 4.2 last quarter, 1.6 this quarter but expecting 1.2. so it isn't bad when you compare it to expectations but i do need to mention that touch big drop pricing index, 2.2%. that's basically half of our last look, which was 4.1% and quarter over quarter, 3.8%

versus 4.9% but it. now, let's look at durable good order, shall we they will change much better than expected. 4.7% granted it's june preliminary. that is multiples of the 1.3 we were looking for 4.5 was the last number read on december of last your. and it's still multiples better than expected. we were expecting one. in the rear view mirror, seventh attempt and the it's a pretty wide spread. if we look at capital good orders, a proxy for capital

spending by businesses up 0.2, following a revised 0 opinion 7, we're losing a little of the horse power in gains if we shift gears to the equipment side of in expectations which were 0.2% and if we look at advanced durable goods, trade deficit, it's an 87.8 billion, lower than the 92 we were expecting. whole sale inventories down 0.3% on the retail side, a completely different the ecb has raised rates. the euro currency has done nothing but go lower we went

from 386 to 388 on a 10-year, which is sill rather tame compared to what many were looking at mid to end of last week and if you look at the proo wow, what a run on the dow andrew, back to you. >> rick, what a run on the numbers. thank you for being. >> has has been looking at them and maybe has some thoughts. what do you think? >> i'm scratching my head here, andrew this economy, which we were happy about the second quarter because growth was going to hold up that was the hope in that was the change that we were looking at what we were not looking for was for growth to actually accelerate now, it didn't accelerate with a strong are consumer spending rick was 100% right to point that out still the top line number of 2.4% is an acceleration of the 2% number that we were looking for.

go to the jobless claims number. you have -- you expected it to be at the low end of the higher range. it's not at the high end of the lower range i guess is the best way to put it. we never really need to mention this number is the insured unemployment rate. that never ticks down, it's always within the 1.2% range and it's down to 1.1%. we're not seeing weakening the second quarter data is looking back at the quarter completed in june and jobless numbers is right in front of us now. you have these june -- summer auto layoffs that may or may not be happening, sometimes especially in the wake of the pandemic it hasn't followed the normal seasonal pattern. we're just not seeing the acceleration there and the durable numbers looked good as well so powell talked about it yesterday. i think this does kind of

increase or raise the odds of this soft landing happening. and then just one other point, which you can see when inflation drops and you have nominal growth at a certain level, it accelerates. i think a big part if we were to do the analysis on regdp, it's from the decline in inflation. >> when we talked at the 6:00 hour, you raised the prospect of another interest rate raise before the end of the year is that -- does that change your view of that at all? >> no. it's a little bit more on the table. one of the first things i did when this data came out, andrew, is to see if the market sees that november hike is more likely not much it's still at 36%, 22% for september. so the market's not giving a ring i'm not seeing much movement --

>> it only up a basis points. >> so nothing there but -- >> it's at 485 now, yes. not much >> rick and i had the cheeseburger bet on the last one. i won that what i've been told, rick, is to collect right now, not to double down, that you should take the cheeseburger in hand is what i've been advised by some of the -- >> we never double down on sliders. you never double down on sliders. you eat them as you go first in, first out. i'll get those sliders there as soon as i can. >> i'm not willing to make the bet, guys, until we see some more data. >> i'll make the bet >> if powell is going to wait to see data, i'm going to wait to see data >> i'll buy the cheeseburgers but i'll still make the bet they're not going to raise or lower rates. i'll be happy to throw in a few more white castle cheeseburgers.

>> only if it's 2 in the morning after a bender, rick that's the only time i can do those white castle ones. >> or one of your concerts >> we'll see how the bet works out. >> benders are simultaneously with the concert a lot of time and the eu says microsoft may be abusing and defending its market position. >> and barclays shares fall and they expect lower margin in the future and the stock is off by about 3.9%

>> samsung reported a 95% drop in operating profit for the second quarter and a 22% drop in sales from a year ago. that was slightly higher than the company's estimates earlier this month executives said they expect global demand to gradually recover in the second half of the year a bipartisan pair of senators want to ban u.s. lawmakers, senior executive bran officials and their families from owning and trading stocks the bill from kirsten gillibrand would not allow exception for blind trusts and the law would also beef up 2012's stop trading on congressional knowledge act joining us, senators gillibrand

and hawley the argument is we don't want total business neophytes in power. the argument is there's been fit to having people who know how to move around the stock market i guess you don't think that matters in this case >> no, in we have a lou law and if you buy and sell, you have to disclose what you're doing a lot of members have access to a great deal of information and the facts show members of congress have a 17% higher rate of return in the s&p 500 in their stock trading. that would lend you to think they're super, super smart or they have access to non-public information. and about one out of seven

members of congress did not disclose their trade properly. so since congress is not abiding by the rules, i agree and i think josh shares this view that they should be banned from buying and selling stock because they have. they can be really, really smart. you've seen some of the testimony and the questions that the house or senate participants, maybe that's not what it is there might be something to this >> no, listen, this is very simple there is no reason why members of congress should be up here spending their time day trading trying to make a buck on the stock market when they're supposed to be here to do the people's business. if you do ask people do they think the members of congress ought to be able to trade individual stock, they say overwhelmingly know and most are shocked to learn that it's legal. most people think that already it is illegal now and should be. so listen, this should be an easy call. it's a common sense bill and i

hope it will get a vote soon what about the whole idea of a blind trust? how do they get around it with a blind trust? seems if you had taubes with the people who control the blind trust? >> i think that's the true people doesn't really believe that by telling their financial adviser information that they have that the public does not have so it just cleaner to say you can't buy and sell stocks. the only thing you can have is 401 ks >> how do you approach family members and pouss so you can't just tell yourself, hey, honey,

yk do they have to quit their jobs >> go ahead, josh. >> spousing working in the industry can advise other people but what they cannot do is buy and trade and sell their open stock. so the members can't do it, the members' spouse can't do it and the chirp can't do it. it's kr when you start creating these loopholes, it get way to news reports whose spouses have traded millions and millions that have -- that shouldn't happen and this bill closes a loop hogue >> this. >> oh, no, i don't think so. kirsten can speak to her side of

the aisle. here's the real truth is that there are so many people who would rather keep the rules the way they are as tirs ten pointed ou, many members of congress doesn't even attempt to comply with the rules now. we've got to bring this into the public light, we got to vote on it and get people -- >> we've been trying to do it. >> go ahead, senator here's an example of volume. in the last congress there were 3,700 trade that could have violated the prohibition of not vie laying in and investigate insider trading, they our transpaul ryanly saw would i'm not disclosing 37 different trades, it's not working we tried the light touch, it dp

it seemed like it was going to happen and then, i don't know, she sort of did not want it to ma but in the stock market, isn't there something beyond that that just seems too easy to explain it, senator hawley is that really what it was all about? >> listen, i think what you've seen is reports from members of congress on both sides of the aisle. this is a bipartisan thing where you have members of congress who like to trade who want to be able to trade stocks and use the information that members get and the fact of the matter is that's unfair, it's a distraction and it a potential conflict of interest so this is why we need an

across-the-board and this is a rule for congress, it is a rule tiff cash. >> and the bottom line is no one should be coming to congress to make money off the non-public information they're here for we're here to help the public. we are nor here to go costs. we made the furr refor tn years august with the requirement ofs did closure. s nof. >> now it's time to ban stock trades >> this is doesn't go this time, are we supposed to that people like to use non-public information. should we assume that's why it's not going to pass, if it

doesn't? >> i'm optimistic actually i think josh and i are a pretty good team. who can and together i think we can of get the kind of support, that we could show leadership that woo it's a pretty serious charge, an indictment of the people we've got in the house and in the senate. >> well, no, listen, i don't think it request and we have to make the case frm we need to change it and i at this i. because the public supports it, the public wants it add the right thing to do.

>> okay. this is what we've been talking about for many, many years, as strange bedfellows as it may be, them together on this is a great thing. >> we're not talking about an inch in height senator hawley, you're pretty tall >> josh is tall and i am fot >> they put you a. >> thank you. when we come back, we are live with the ceo of mattel fresh off of second quarter earnings we're going to ask him about the success of the barbie movie, peace frngs and we'll ask him about the pipeline for other

bills. we'll talk all about that you can get the best of "squawk box" st our daley podcast ju follow. and we'll be right back. i love to help people understand the world through their lens and invest accordingly. you can call us christmas eve at four o'clock in the morning. we're gonna always make sure that you have all of the financial tools and support to secure your financial future. that means a lot for my community and for every community. ♪ ♪♪ i started club soccer way later than most girls. i was like i can't pass the ball. i can't dribble. i wasn't at the level that they were. i thought do i give up? do i quit? but i was like: i can overcome this. you have to dig deep and fight for what you want.

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well, barbie parent company mattel reporting a surprise second quarter profit of ten cents an adjusted share. that compares with expectations of a two cent a share loss, but both revenue and profit fell year over year mattel is going to see a much greater impact from that hit movie, "barbie," in the next quarter. stock right now down by about two cents, but we want to bring in mattel's chairman and ceo, ynon kreiz the phenomenon that is this movie has been huge. you see it everywhere, go to the theater, see it out, see the marketing campaign for it. when does that really play out into your earnings just in terms of toy purchases or things that it can really mean for your company? >> yeah, hi, becky, well, from the very beginning, this was never about -- just about making a movie. this was about creating a

cultural phenomenon, and we could not be more proud and happy with the way the movie is playing out. we're seeing a very broad audience, more than female we're seeing male and fans we're seeing people coming back two and even three times to the cinema the movie is playing extremely well internationally, and all in all, it's a great launch for our first production out of mattel films. the impacts playing further down in the second half of the year, and expect barbie to grow for the full year. >> what happened just in terms of sales of barbie are you selling out of stuff right now? >> yes, very much so the movie-related product has been selling out very fast we're seeing strong performance entering into the third quarter, and clearly, there is a lot of demand and excitement for barbie out there. >> yeah, are you going to be upping production of barbie stuff for christmas? >> oh, we're working very hard to fulfill what we're seeing as

increased demand barbie is such a strong brand. it's resonating at a level with, of course, haven't seen before we need to remember that going into this movie, barbie was already one of the strongest brands in the industry for two years in a row, it was the number one brand in the world, in the toy category >> eah, and -- >> so, the brand is already strong, and of course the movie is elevate ing it to another level. >> we're looking at this one-month chart. stock's up 15%, i think a lot because of the excitement around this movie it's certainly paid off because of the buzz and what you're seeing and probably the halo effect into sales for these things, but the other issue that mattel's been dealing with and all toy makers have been dealing with is just this idea that people aren't buying as many toys as they were during the pandemic when kids were stuck at home i know you guys have been dealing with retailers managing their inventory that hit in the first quarter and the second quarter. do you think you're through that yet? what happens are we getting back to just a normal demand for toys >> yeah, we do believe the

inventory correction is mostly behind us. our own inventory is down by over $200 million. we have seen softness in the second quarter in the toy industry, but we expect to see increase in a positive holiday season for the toy industry overall. >> richard dixon, who was responsible or at least credited with the big turnaround for barbie for your company, it was announced yesterday he's leaving to go be the ceo at gap. is that a huge hit to you guys how do you fill in, and how do you create the buzz that had been there before? >> we have a very strong and deep management team with a lot of experience, decades of experience lisa mcknight, who was working with richard and managed barbie since 2016 and very much part of the transformation as a leader with richard, is going to run our category structure with our

global brands, and josh simpsi silverman, who came from disney, is going to oversee all the nontoy commercial activities and of course with a very strong team overall, we are very excited by this next phase of growth for mattel and of course the barbie brand coming off a pivotal point with the success of the movie >> yeah, i know that this has been something you've been working on for a long time, this pipeline with hollywood. this is the first big payoff for it i read there are 14 potential film or film ideas that are in the works at some level or shape or form. i guess i wonder, what did you learn from this "barbie" experience, and how do you put that into play with other potential films that are out there, whether that be hot wheels, barney, polly pocket >> the "barbie" movie was really a showcase for the cultural resonance of our brands, our ability to attract and collaborate with top creative talent, and of course, the

creative -- the promotional and marketing capabilities and our franchise management expertise, and the collaboration with warner brothers has been phenomenal warner brothers has done an amazing job from the very beginning. they showed commitment to the project. they brought in their marketing and promotional platform, and together, we created something very special cultural phenomenon. this was not just about marketing a movie. this is a cultural phenomenon. >> this movie wasn't targeted at kids that's the weirdest part about the whole thing. it's getting huge buzz, but that definitely plays out and is the way you see it in the future do you need to bring in older audiences from the pg-13, or will other movies be directed more at the kids who would naturally be your market >> we're looking to create unique experiences we're not looking to take the conventional route or traditional filmmaking this was always about trying to find a creative approach, a unique voice, and of course with greta gerwig created in terms of

the creative execution and her vision of a modern-day interpretation for one of the most iconic brands in modern culture, is obviously what made the movie so successful, but this is the approach we're looking to partner with creative talent, support and amplify them, and then bring in our capabilities to market and promote and create events out of these movies, not just for cinema-goers but for culture overall. >> what movie is next? >> well, we have a few exciting projects in the pipeline we haven't announced the -- when they will come out yet, but we have the hot wheels project produced by jj abrams, and districted partly with warner brothers matchbox with sky dance, rock 'em sock 'em robots with vin diesel we have the barney movie and a very exciting slate, and a very diverse mix offering deferent genres, different

demographics and all in all, a very strong portfolio, a very exciting state of projects that are now currently in development. >> is it fair to say tha "barbie" has exceeded your high expectations >> you know, we always knew that it's going to be a special event. we've said it before, and it's exactly what we were aiming to achieve. i cannot say that every movie will be as successful as "barbie," but we absolutely looking to apply the same approach, the same creative take, the same collaboration with talent and major studios to create something special and what is unique in our offering is that the people who buy our product are not just consumers. they are fans. we have an audience. we have an engaged audience with very strong cultural connection with our product, with our brands, and this gives us a unique opportunity to continue to grow our business outside of the toy aisle, and expand our

entertainment offering >> ynon, thank you again congratulations on the success of this to this point. we look forward to seeing what comes next ynon kreiz >> thank you, becky. meantime, we've got about ten seconds to show you that the dow looks like it will open up about 100 points higher. nasdaq up 218. s&p 500 up about 35. it will make it a big win streak we'll talk about it tomorrow make sure you join us then "squawk on the street" begins right now. ♪ good thursday morning, everybody, welcome to "squawk on the street," i'm david faber he is jim cramer we are live from post nine at the new york stock exchange. carl has the morning off you just saw futures take another look at them, will you? look at that nasdaq number >> well, david, there's a company that's on the nasdaq that we're going to have to discuss. >> okay. i bet you that's where our road map starts the name is meta and it was a -- well, it was a monster quarter. shares are going to be