today. andrew and i will be right back here tomorrow. >> see you in the morning. >> ready to go one more time and i misread the clock. we've got another 12 seconds to go so i'm going to sit here and stall because we're not handing it over early. this is our show to sit with, and we will wish you guys the best of luck happy monday we'll see you back here tomorrow right now, it's fulltime for "sk on the street. ♪ good monday morning, welcome to "squawk on the street," i'm david faber with jim cramer, and we are live. this is not a drill. we're live post nine here at the new york stock exchange carl has the morning off he'll be back soon take a look at futures you just heard becky talking about, we're up now. we kind of turned around a little bit we are looking like we're going to have a bit of a higher open we're going to start on our road map with stocks as they close out a strong july, even if we

end down today, it will probably still be a strong july wall street's eyeing what would be a five-month winning streak >> that's very impressive. >> it is we have some downgrades today on the research front. ford, ge, csx, u.p.s., salesforce, that's just a few. we will dig into some of the reasons why. and twitter left its heart in san francisco, but elon musk saying the newly branded company, x, will still call that city home despite its downward spiral, as he says >> i'll be out there next month. >> you will? >> well, september, for dreamforce >> oh, dreamforce. >> i'm a big believer in the city, and i was out there in september and was -- i don't want to say i was horrified. but it's mnot the city that i remember >> we're going to talk more about that, but i want to get to the markets as we start our coverage for the week. today is our last day of july. as we said, fifth straight month we're coming off what was a

fairly strong week >> sure. >> and what seems to have been generally speaking, and of course, we got a lot more earnings to come, and you can see amazon later in the week in terms of sort of the end of the mega cap tech names. we got uber, merck, pfizer, plenty of others, but so far, feels like the response has been generally pretty good. >> yeah. and i think it's really important that there's this undercurrent there's a very important downgrade, and i'm going to bring it up in the beginning keith weiss downgrading salesforce they liked adobe, but it is this ennui of greatness, ennui of a.i. it's going to take a long time, don't get too excited about it the stocks all starting, david, with the poor reaction to microsoft's quarter. and that's got people thinking, okay, let's rotate into other areas that are not as hyped. now, i don't mind that, but we don't have a lot of areas that

have that kind of growth >> no. but they also, i mean, i think what investors may be appreciating is the amount of money that's going to be spent by these companies in order to secure that growth now, a few ware question who the leaders will be, but it's still going to cost a lot. >> it is and adobe got upgraded looks like it's further ahead. i think the monthly gainers of the dow, you know, revisionists, whatever -- >> anachronistic >> but the dow winners speak so loudly i'm just going to quickly read them down. >> sure. >> boeing, 13% 3m, 11%. goldman, 9%. intel, 9%. david, these were four companies that we regarded as being on their -- the back nine

and no not only are they not back nine, but a lot of great management moves here, a lot of what i think is very telling in terms of trying to tell a new narrative. goldman-sachs getting out of the retail, who even knows that apple credit card could be in debt we don't know. boeing calhoun delivering superb performance. 3m you got roman making a deal to get rid of some of the big litigation and intel. i'm going to praise pat gelsinger. i went over that quarter a couple times >> really? wait, what >> it was a great quarter. >> you have been -- >> i've been waiting >> you have been uniformly negative about intel for years, and of course, been right to have been negative on intel. >> thank you very much >> so, it's surprising to hear you positive why? >> well, because he talks about the other side jensen huang may not agree with this, ceo of nvidia. the other side of a.i. he's got the right chips to make it so all the ancillary parts of a.i., very important bottom call to pcs, leapfrog technology

because they've done a lot of good things with engineering mobile eye turned out to be a plus for them. the ipo. new spirit when i read his email to me initially, i wasn't dismissive, but i says, that's great, pat. i took it home and read it friday and read it again last night, and the conference call, and it truly is -- i reached out to him immediately and said, look, i have to tell you, you've endured a lot, including from me, but i like the game plan i think the game plan is a strong one he also could be a big beneficiary. he's doing some big things in europe he'll be a beneficiary of the chips act. it took a long time. and he lost some gain. >> so, you think that they are on a real path to recovery i mean, by the way, we were talking on friday, i was discussing this over the long-term, this decline of a great american company over the

last 20 years. >> very true >> and by the way, at the same time, the decline of our own manufacturing capability when it comes to semiconductors. >> they were one and the same, frankly. >> they were and that decision that paul made when steve jobs said, do you want to give me chips for my phone, and he said, no, we'll be okay, no thanks. and on from there. missing, of course, the ability to get the chips, the nanometers and allowing the league to be taken by tsmc. >> and amd >> and look, i don't -- >> and then, of course, nvidia so you're telling me what? they're at the beginning of a new -- >> he's back on course i didn't want you to believe that i think he's there and amd is there i am saying after a long period where i felt they had become also ran, they have a legitimate prospect to begin, particularly with pcs coming back and with his role in a.i. jensen huang did a series of papers and a seminal speech,

obviously, in taiwan he said, everything's flipping it was 5% gpus and 95% of the classic intel chip cpu. >> right >> and now he say it's flipping. he says now it's going to be 95% gpu and 5% cpu if that's the case, then it's for naught that's why i don't want to say pat's out of the woods >> it's not as if they're coming up with a product that's going to compete directly with nvidia. >> no challenge whatsoever it might as well -- i'll tell you because i know this will put it to you. let's say you sent scherzer to the -- >> i knew you were going to do this >> that has absolutely nothing to do with this. >> i don't even understand >> i just had to bring that up because i can't believe it happened that's amazing >> yes, it happened. >> jensen decided, there's fast and slow, and -- >> but you think intel has the

ability to benefit from this because they will have chips that at least at a lower price point and a -- that will be part of the a.i. revolution >> exactly but remember, jensen huang is dancing on the grave of moore's law, so to speak he's been saying it's dead, and pat gelsinger says it's not. jensen says, you keep making them smaller but there's no benefit, so why not go big and send everybody else home and i think jensen is right. you need speed, and you need size, and because jensen is uniquely concerned about heat and waste, he's developed a superior system. but i'm again saying that i no longer think intel is -- >> when we sit here now, you're not going to be dismissive of intel, which you have been for years. >> i'm not anymore, because this was the quarter. when he sent me his note, very plaintive note, he's a very thoughtful man, and i could have easily said, okay, sure. but it was not an, okay, sure.

it was, look, we've done a lot please appreciate it and i do i don't want to spend too much time on it, but i know that you and i both -- >> i'm glad we delved into it a bit. we'll see what happens from here you're right it is. by the way, we need to remember all of the -- tsmc was morris sheng from texas instruments, and the dutch, that's all our stuff. we are -- we were it we're the engine for everything that has happened in the chip business, more or less the japanese, i don't want to take away from them. >> we're trying to take it back. tsmc, obviously, is saying, listen, it's really hard to build in arizona but we're getting some very good reports about, like, for instance, i have lindy on tonight, which is a remarkable company, lin, and they said, listen, they're not going to be ready in 2024 with their giant plant in arizona, but they're getting further along because they're brilliant. >> you know, that's a good way

to segue into sort of china. couple of important stories today that i would like to get your take on "the journal," a, reporting on macro deflation, real concern. >> that was some story >> deflation there there you see it and, well, that's a royaleuters sto story, but this idea, could they be entering the spiral the likes of japan that only resently emerged from and then they are not -- it is starting to have an impact the administration's blockade, essentially, of the most advanced chips to china is starting to have an impact >> look, and also, you've got the -- you have the military you have the industrial. and you have the consumer. then you have belt and road, too. 200 billion in belt and road >> they're doing a big belt and road sort of initiative recently >> still are >> they're not getting a -- they're not getting as many of

the countries to attend. >> there's a lot of countries that feel they have been -- but they're trying to get their economy to flip. they're 70% industrial they want to flip. >> they thought the consumer would be there in a more substantial way. >> the supeconsumer is 4% >> the consumer has balance sheets that are under stress, even more so than we do. debt for the average is 1.5 times their income, which is even more than the u.s >> if we lived there, i think it would be an existential crisis we would say, we were about to take over the world. we're defeating the u.s. suddenly, they keep their chips from us. the markets have been closed off, thank you, trump. the europeans are not -- >> it's not just the -- it's the chips that are made by tsmc made by u.s. chip-making equipment. it's lot like we make it here. >> where is the intellectual property of the chip cycle where is it? it is with kla, applied

materials, and most importantly, lam research those are the three most important companies -- >> asml was all u.s. -- if you go back in history >> if you go in there, all you're going to see is the genius of tim archer >> back to china if they really do enter a deflationary spiral, that's not going to be good for the world economy either it's going to result in cheaper goods finding their way here >> since we haven't dealt with deflation here since the '30s, people don't don't know it's as pernicious as inflation. it wipes out your savings. it makes it so you can't really grow but most importantly, it makes it so you're a pessimistic nation >> right >> and india, i mean, how many times have you read pieces in the last six weeks about the future of india versus the sunset of china? now, china has -- they got to solve -- china's on the wrong side of history in terms of

ukraine-russia, too. there's no communist -- remember, germany had this bastion of people, including the brits in the 1930s, that said, listen, they can keep the russians at bay, keep communists at bay now, people are saying, the chinese are naked opportunists they're backing russia because of the oil i do think the chinese find themselves in a place, and i'm glad you brought it up early, because it doesn't feel the way it did in 2015-2016 when they had the hiccup and suddenly we had the momentum >> still the second largest economy in the world and not unimportant. >> read procter. you would not feel that way. you would say, oh, maybe second half better. i'm talking about msd would be a win. also known as mid-single digits. >> what? >> mid-single digits right now, they're growing at 4% i'll take 22%, latin america >> i'm not sure i followed that

last part. >> i'm just saying that china is not the growth market. remember, procter used to be -- >> is that bad for procter & gamble is that what you're seeing >> they don't give a darn. china is an afterthought, that's what i'm saying. >> oh. glad we got that clarified when we come back, say good-bye to the bluebird we'll have a closer look at elon musk's rebranding of twit twitter. it is now x. last d othayf e month of july more "squawk on the street" straight ahead

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elon musk making good on that promise to rebrand twitter. it's now known as x, the new logo replacing the famous bluebird a giant "x" was installed on top of the building in san francisco. apparently it flarshes at night. city officials claim the sign is illegal. some neighbors may be upset with the flashing x it is now an x on my phone still an app that i use numerous times a day, jim i don't know about you >> i do too. >> or for consumption, of course, not as much sharing anything that i have to say. >> i find it invaluable. >> it's still valuable >> it's not just prurient. >> whether or not he's going to realize full value as he tries to broaden its offerings in a very significant way remains very much unclear.

it was never worth what he paid for it, as he well knows >> linda yaccarino, if she were to take the posture that i suggested to marc benioff when he was debating salesforce, i said, look, you have a tremendous read, consumer package good read, instantaneous of where things need to be, so you could easily sign up every consumer package, good company, and say, listen, we are going monitor this for you and we will tell you where you should put your resources, make it part of your pastiche. the previous regime at twitter regarded that as being something that was an afterthought the other way is to use it for banking, because -- and that was an afterthought. if everything's an afterthought, then nothing ever becomes a forethought. and i think that we all know, from your interview with elon musk, he's not -- there's nothing idle about the man >> no. >> the intensity is so -- burns bright >> in fact, i thought one of the more interesting stories of the weekend, given just the enormous coverage of musk that occurs all

the time, as i say, endlessly, he is the most consequential businessman on the planet was about starlink >> people are worried about how powerful he is >> he's got such influence, and again, you have only a certain amount of time, and i know people don't want to hear it, but i regret we didn't get to talk about starlink and its importance, because i was so interested to discuss that with him, given its -- you mentioned ukraine earlier. it's such importance of the war effort there it is growing in importance around the world in terms of the offering, given the 4,200 satellites they have now, the ability to get more, 42,000 of these allow orbit satellites at some point is the plan many people brushed it off as like global star or rhidium. no way this thing is for real, and obviously has helped contribute to the fact that spacex, again, not a public company, has a value at last go round that was $140 billion >> well, look, it's a long

history. alexander graham bell, edison, these were people who were great inventors. they didn't capitalize as much as they should have. uniquely american. he's not uniquely american, but the idea is that these were people who were great saviors of our nation in terms of industry. this guy comes along and does really well, and suddenly he's in the crosshairs. >> meanwhile, he's going to stay in san fran, even though he had nothing nice to say about it >> he's so complex david, when you dealt with him -- >> he said, this city is in a doom spiral. but we're not going to move. beautiful. we will always be your friend, whatever that may mean >> i don't know. there are a lot of people, including people i know in the travel and leisure industry who said, stay away. >> i will tell you, every -- i mean, you know, every day he spends in california, i believe, costs him at least a couple million dollars in taxes

every day. that's why he's always trying to get out of there before the clock turns midnight for the next day >> he has a fabulous relationship with a person by the name of patty poppy, and patty poppy is the pg&e ceo. she's remarkable she's turning it around. and they have a -- their team and her are so convivial and she's so forward thinking, that i swear she's playing a role in how he's judging about what the state's like >> interesting >> she's a capitalist at heart who's doing a lot of things for the environment and is brilliant and unsung, and i think is playing a very positive contribution to the way people view california. >> interesting all right, we're going to get a "mad dash" coming up next. we'll also count you down to that opening bell, of course let's give you a look at futures for one last time before we get started with trading here at 9:30 a.m. eastern. we'll be covering a bunch of downgrades, also got a deal. not many this morning but we do

have a deal for new relic. $87 of share in cash we'll share that with you when we're back after this. zbliefrmts what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today.

♪ so, from now, as we end the month of july but begin the week eng llomg up

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the opening bell is brought to you by nuveen, a leader inning in, alternatives, and responsible investing. all right, let's get a "mad dash," and we'll get right to

the opening bell you want to hit alphabet >> like many of us, we are all trying to figure out how to get off directv because we want to have the nfl sunday package. sunday package is owned by youtube now. it's very difficult to try to figure out whether to get rid of that stupid dish on your roof, but it's not difficult to figure out this company is worth a great deal more than we thought. i had debated trimming some from my travel trust and i started reading this moeft nate nathanson piece. david, you happen to know the cable values that would not be insubstantial. >> no, it wouldn't i mean, the run rate last quarter was $7.7 billion in revenue. it did inflect up again in terms of growth, so you can figure out what they're doing for a year. that's still a pretty hefty multiple to revenues >> got a $1.7 trillion company, and it's also very well covered company, so it's not like there's anything revelatory here what i like, david, is when we look at who's reported, there

are a lot of people who feel, oh, microsoft let us down. there are people who fear that microsoft will let us down but the upside was the alphabet, and it came from google cloud. it came from a very surprising number from youtube, and it came from a re-acceleration of search i think there was a lot of -- too much chatter about the notion of some changes in terms of the c-suite with ruth porat, well overdone, but i like this piece very much, and the question that is asked in these beautiful headline is, alphabet, the world's leading media company. >> well, listen, youtube is probably the leader when it comes to video, which is, when you think about it, just from a revenue perspective, it's right up there of course, given its growth, which is different than the rest -- so much of the rest of the media, which is struggling with advertising and of course those who have actually linear cable networks that rely on a continually shrinking cable audience >> netflix had 37% are now streaming. when i go through all the

conference calls for the cpg companies that have reported, david, there's not one that seems to think that you shouldn't be very heavily allocated toward youtube and others ♪ >> here at the new york stock exchange, at the big board, home appliance maker sharp ninja, celebrating a listing today. we're going to speak to the company's ceo. at the nasdaq, fathom holdings, a real estate services platform. they're excited about going public there's a look at the realtime exchange back at our headquarters, of course, given what we saw for futures, not unexpected that we would have more green there >> there is, david, a stock that reported -- a company that reported this morning, hassane el khoury delivers exactly what

we have been expecting this man has been -- he's just been aces, and this time, again, it's ford batteries for ford cars and the stock is up a very quick 5%, and i think we ought to start thinking this is one of the major companies because this man is a visionary so, i can't wait to hear the interview at 11:00, and i think it will be extraordinary >> yeah, what is the -- can't see the market value >> but they pivoted to be able to become -- they went all auto. nxp did a lot of auto. and when you speak to him, be cognizant that he has a five, ten-year view of things. he's not thinking about five quarters >> right >> very wise man >> wanted to talk about new relic. this deal that i mentioned briefly, moments ago sorry. just having some tech issues here 87 bucks a share in cash >> right

>> this is a fairly significant premium, but this is not a name that is a stranger to those who dabble in potential takeovers. back in may, late may, though, there were reports that francisco partners and tpg, which are the buyers here, had ended talks to acquire new relic. obviously, they must have started them up again, because, again, $87 in cash, there is a 45-day go shop that is not something we're unaccustomed to seeing in private equity deals of this type and so, they can hunt for a security proposal. it does appear they've been looking for quite some time. >> new relic is an anagram of a man by the name of lou cerne he retired in 2021, and the company has been leaderless, i think, since then. cerne was a great man. i don't know if you own mlb.com but one of the reasons why it always works is because lou

cerne's team has been -- or at least the time that lou was there, they managed a lot of websites in a 24/7 critical way that makes it so they don't go down, and i think it's a great company. but i do feel that it missed, like many companies in america, david, it missed a few quarters, and that became too much >> they had a -- they had an activist in there in the form of jana, which took a couple of board seats. that's a while ago that's over a year ago >> yes, it is. >> they are in favor jana, lou, as you've just pointed out -- >> he moved on >> yeah. he also, though, is voting in favor of -- >> that's good >> they signed voting agreements >> i want things to end well for that company that was his company he built it, and we should celebrate people who build companies. >> he's rolling over 40% of his holdings into the transaction, so he will continue to be a holder in the newly private new relic. don't have information here on

the financing behind the transaction. remember, you've got two private equity firms you're talking about an overall value here somewhere around $6 billion or so $6.5 billion but don't have -- and always like to look at that because, of course, we talk so often lately about the role that private credit has played in really just intermediating many of the big banks in terms of financing, transactions like this one >> i'm so glad you mentioned that >> i don't have that -- oftentimes, in these releases now, they will include who's the financing parties are, and apparently, if reuters is to be believed, back in may, one of the reasons why this fell apart originally was they failed to secure the debt financing for the transaction. so, not a big merger monday in any way, but we did want to share that deal with you >> well, wait a second >> this morning. what else? >> harris. how did they get that deal through the ftc? >> i don't know. >> i mean, i thought that deal was dead and that antitrust would block

it and they got it through. why is that? >> i can't say >> i don't know either, but it made me feel like if you're just saying that they're going to blast every deal to kingdom come, they're not. that deal got through. >> yep >> important deal. important. >> it's true the ftc, they'll tell you, well, we still let 98% of the deals go through. >> they always say that. >> that said, we tend to focus on the ones they have taken to task and question some of their thinking when it comes to the actual law and it does play a major role in many of the decisions being made by ceos as to whether or not to try to acquire, certainly when you get to the point of a large transaction. >> not unlike how the s.e.c. came down on coinbase that we found out in a very interesting piece in "the ft" k." >> has gensler lost that battle in terms of treating it as a security >> i would say among the -- the

most skeptical of people who are involved in bitcoin, regard it as a major sea change against gensler. >> they do >> yeah. and i think gary -- the chairman has obviously done a lot of things right, but this decision by a federal court really did make it so he feels like -- i feel like it's rear guard actioning. i don't want it to be, because i think he's trying to protect people >> right >> trying to pit people against a lot of bogus coins, which he quite detailed as being legitimate you and i would say they would never pass muster so i'm in the camp that gensler is trying to protect people but there's a group of people who say we don't want to lose our lead including tim masten came on "mad money" a couple times they say they don't want to lose their lead in cryptocurrencies interesting time, and not covered enough by anyone

>> you mentioned antitrust, and i should have followed up. livenation was down sharply on friday this is the doj, not the ftc >> right >> and reports from politico that the doj could come after them that is livenation remember, they were allowed to buy ticketmaster by the way, i know, you know, there were a lot of people surprised with that deal was allowed, including, i think, barry diller, to some extent he might dispute that. but doj may file a lawsuit is the report, as soon as this fall, saying that the entertainment giant is abusing its power of the live music industry because they own the venues and the ticketing fluid, apparently, no final decision's been made, but it did have an impact look what it did on friday this was out late on friday, and it did impact the stock. we're not seeing a rebound >> jonathan kanter, assistant attorney general for antitrust, kept that close to the vest when i had him on, but one thing he really is trying to do, as we

know from the pienguin decisions is make it so artists are not disenfranchise bid giant companies and make it so it's harder to make a living. it's something he uniquely cares about, and you don't want to be on the wrong side of jonathan, of mr. kanter. he's a very rigorous guy used to be paul weiss, corporate. >> take very seriously their lawsuit against alphabet, which we were just talking about when it comes to the public side of their business, the advertising. >> youtube quarter was -- david, if you didn't feel differently about youtube after that piece, after that quarter, i think that you've got your head in the sand youtube taking that nfl ticket was the beginning of what i most worry about. we've not talked about this. >> we haven't talked about what? >> talked about disney and what's going on with bringing back some old hands there. >> that's a story in a pucknews about iger bringing back his old

heir apparents, i don't know, mayer and stags. engaged individually, this report says, to consult with iger and espn chief jimmy potaro and others at disney i think that there's a lot of different things listen, shares are up over 1% right now. we're going to hear from the company next week in terms of the earnings i think in our interview of over two weeks ago now, i think mr. iger foreshadowed what is not going to be a good quarter i think he made that pretty darn clear from the interview that there were near-term challenges. >> he's running a b&b out there. >> we will see what it looks like >> he's got a b&b out there. the quarter is bad, and the next quarter is bad b&b. i'd rather be in airbnb, who's having an amazing quarter. >> airbnb is >> brian chesky doesn't get his just deserts because he's a bit of a -- it's not on me my team's greet.

the app's great. the loack of promotion around some of these ceos requires me to promote them. >> so you're promoting airbnb's ceo, brian chesky. >> i think that quarter was underheralded. i think the long on money, short on time travel call is good. david, i was quoted a $37,000 round trip ticket to japan >> $37,000 round trip ticket i assume that wasn't coach >> well, there was no shower >> no shower >> it's not like the emirates plane to madrid. >> that's a lot of money, $37,000. are you planning on going to japan? >> i'm actually -- no, because you see, i want to be able to have a lifetime's worth of capital after i feel like that's going to put me in the poor house. >> that's a very expensive -- what is your point >> what? >> about telling us about -- >> i still think travel is very much en vogue. people are going places but they're trying to be more frug

of >> are they, or is it just you >> others are along with me. >> they are? you're sure about that >> they pick iceland because it's less expensive -- >> it's also closer. >> four and a half hours i'm like the chief spokesperson for iceland. >> country with 300,000 people it's great >> david, how about the rails? >> i don't want to talk about the rails. i want to -- how about ford? i know that will make you a little uncomfortable >> are you just, like, i mean -- >> got another downgrade today we talked about that at the top of the show. ford is cut to a hold at jeffries >> so, what did jim farley do wrong? he's got three divisions two of them excelled the division for the - >> the internal combustion engine's doing really well >> small business -- i call it the small to medium size business, and the e-business is -- >> challenging >> lagging challenging. >> yes, ev >> it shocked people because recently on my show, when i went

out there, he indicated very different numbers and now it's imperative that he pivot and i think what he has to pivot to is he has one of the greatest businesses in the world. just happens to be out of step with what the environmentalists want, and another business that is up the greatest industrialists of our time, who can change prices depending on how he feels today >> his target is an 8% margin over the long-term elon musk is sort of -- can do what he wants with his margins and he's correct in his belief, ultimately, that his fleet of cars, one day, will be robo taxis that produce an enormous return >> as soon as they get off the lot, they're worth more. i'm sticking with farley i'm assuming -- >> you are why? >> because jim farley, who gives you a great dinner, by the way, is a person who will recognize that he has a tremendous suite and he may have overemphasized the electric suite because there was such interest, and there were so many people who had never bought a ford before who

bought an f-150 lightning. a really great executive recognizes that he's got a better hand than he thought in one part, and he augments that hand, and a worse hand in another and doesn't decide to put more money behind the worse hand you'll see a change there, i think, which will be more of a tome of rivals like doris kearns' book >> that was a great book about lincoln. >> not ford. >> no, not ford. sofi >> well, congratulations >> we're going to have anthony join us in the next hour >> that's ridiculous >> is it that ends right now. >> really? >> that ends right now >> should i have not mentioned that >> no, i'm just -- this is not right. >> it's upsetting to you >> yes >> why can we talk about the quarter? you can't call him >> why not >> because he's coming on with us >> why aren't you coming on the 9:00 >> why would he come on the 9:00 >> all right he had no idea look, i'll get back to you later, maybe do another -- maybe do a reprise, okay

no, i'm on air i know you're on air i was just expressing my, you know, somewhat -- i was a little agitated, but i'll let you go back be ready, what time is he on 10:30. i'll watch you today all right, good stuff. >> can i tell you why he's coming on? >> i got to go, i'm on air i'll talk to you later, though >> gap and adjusted net revenues -- >> he thought i was on the 10:10 10:00. >> he did? >> yeah. sometimes people don't really know when we're on can i tell you how many people still ask me where i do the show from watch every day. where do you do that show from >> you know what ooimt i'm going to be on the 10:00. >> you're inviting yourself on the 10:00? i don't know about that. that's 10:30 that's deep. >> so, i have to sit here and take it? >> you don't want to talk about sofi you're just going to be sad and sore that anthony noto is not

joining you. >> our unbelievable ceo conference in santa barbara, i looked him in the eye, and i said to him, anthony, i have known you since 1996 are you going to blow it do you need money? how's the -- and he goes, jim, have i ever let you down the stock is down at $11.37 >> i didn't realize. >> that is some run. the numbers are great. >> i didn't realize it was that recent mid-may. >> he is on fire it's not just the stadium, obviously. if you look at the numbers underneath, david, you will see a level of interest among young people joining this company, basically a club of finance. >> well, i will say, it's above its spac ipo price now remember >> he took in $2.7 billion, up 26% to $12.7 billion, low cost of funding he added 584,000 members to 6.2 million. he chose to reward me by coming on your show it's all good. zbliefrmts >> you can't take all this

personally >> i take everything personally. >> i'm aware of that, but you get more interviews than practically anyone on the planet >> i'm not working hard enough is my takeaway >> you are working too hard. >> anthony noto, west point. >> we know anthony's been around, it feels like, forever. i remember he was an analyst at goldman, then a banker at goldman, then at nfl, and he was -- i mean -- >> may i just say, i only said this about jeff boouks great american >> finally, speaking of great americans, you want to talk at all about crm and benioff, which got that downgrade you mentioned at the top of the show >> four out of five times, if you downgrade salesforce ahead of dreamforce, you've proven to be a loser so, as much as i like the work of keith weiss, i think he's going to be the five out of sixth time that's going to make a mistake. you don't downgrade this >> you may see at the bottom of

your screen, chicago pami 11th consecutive month below 50, indicating contraction consensus estimate was 43.3. >> how about kashkari? he's not saying things are so hot. >> no, actually, take a listen to kashkari, since jim mentioned it >> the one thing that has continued to surprise us is how resilient the american economy has been, even when shocks have hit us the u.s. economy just continues to signal that it is very strong, that there's a lot of demand workers are coming off the sidelines. right now, we know shocks can hit us, but right now, the base case scenario seems to be that we'll have a slowing economy, but that we would avoid a recession. >> nothing wrong with that sou sounded good to me >> one of the things that i think powell is doing is getting rid of the dichotomy how about no landing how about just cruising? just keep going. and i just think that he's doing

a remarkable job, and obviously, once again, i'm promoting these people i promote jay powell thank you for not laughing at me anymore about doing that >> doing what? >> promoting jay powell. >> i'll laugh at you another time maybe not today. >> by the way, the conference call, can i just go back completely in a nonlinear way and talk about the conferences that we had with ceos in santa barbara. i had frank slootman on from snowflake, and he was not happy with his own execution, tough rasmus guy from the netherlands. >> clearly, it was a bottom in sofi up 20% right now >> congratulations i mean, i'm joking around. i have friends it's not about money he's a friend. he brought it back public and i'm so thrilled for him having a great quarter. i would not normally call someone in the middle of the show >> that was interesting. that y

thank you for doing that usually, when i make those calls, i don't make them on camera >> i thought it was explosive. i think cramer's actually making a call >> you were actually talking to anthony noto let's give you a look at the bond market and the bond report, which of course means we take a look at how treasurys are faring there's a look at yields 4.879% on the two-year the ten-year note yielding 3.953% we're back right after this.

oppenheimer is magnificent. the new york times calls it staggering. it's utterly enthralling and one of the best movies of the century. regional banks, they dominate the list of s&p 500 gainers for the month of july. of course we've got the earnings season and it was very reassuring to many of the investors there, especially given the mini banking crisis we call it we went through in march and early april as well.

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let's do stop trading. >> okay. who is making a.i. a priority and not losing money satya, adobe is getting its due today. i had him on after we talked about the products and morgan stanley say buy the products, up 15 i used the products. the integration with chat and the integration with color and being able to make it so that you look like you are the number one company in your industry, even though you're a two or three-man group, is all shantu she's bee he's always been involved in story telling and innovation. >> he's fascinating. >> look at five years. just i mean, remember the incredible move up, but then the crash and now a huge rebound. >> he had to go and switch over to the cloud and the way that you advertise, but his firefly i

have seen in actuality which is a.i., with jensen huang, it's breathtaking as good as the proctors and mondelezs. i am in awe of the democratization this man has brought worldwide. >> tell us what's on mad >> we start not shark week but shark week i'm bringing my charts and we'll learn so much. younger people love charts and i love younger people. we'll get it done. thank you. >> you're welcome. coming up, not too trigger jim here, as we told you, shares of so sofi are up double digits on quarterly results. don't forget chart week. anthony will bjoing e inus in the next hour on "squawk on the street." stay with us een a real rock sta. rock star? what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather.

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go to innovationrefunds.com you really got the brows. meet gold bond healing. a powerhouse lotion that moisturizes, heals, and smooths dry skin. with 7 moisturizers and 3 vitamins, you can pay more but you can't get more. gold bond. champion your skin. good monday morning. welcome to another hour of "squawk on the street. i'm david faber with melissa lee live from post nine of the new york stock exchange. carl and sara have the morning off. we are actually turned lower on the nasdaq, the s&p.

let's call it flat right now but you can see where we stand with the dow the only -- not even -- about the same futures had us up. now we're not. >> we are 30 minutes into the trading -- what do you want to say? virtually unchanged. there we are here are the big movers. starting off with ford, jefferies downgrades the stock to a hold, lowering its price target, citing concern around guidance of the electric e mort vehicle. adobe, 660 to 510, the company will benefit from a.i. powered products sofi posting a narrower than expected loss, adding to its yearly gains up more than 140% in 2023. ceo anthony noto will join us to break down those results. >> speaking of results, it is a busy week of earnings. we have big tech in focus.

investors look ahead to not only reports from apple and amazon two of the largest, but coinbase, amd, uber. you can take a look there at what's coming. bring in market commentator mike santoli and get his take on the week that is yet to come >> the market is back in the routine of give credit for companies for beating lowered expectations and handily you could say in aggregate this quarter. to me, given how far the market has moved and most of the moves in july even happened by about two weeks ago, 12 days ago july 19th, we were at this level give or take in the s&p 500. we just haven't given any back seems like the market does nothing but grind higher it's, to me, about a little more clarity about next year. apple the shares are up since january 31st, about 35%. the consensus estimates for fiscal '24 have not budged in that time period whatever is going on in apple is not about the last three months or the coming three months you're starting to see some

reports stoking excitement over the iphone, merrill, bank of america saying that demand is luke warm. a lot of availability. to me the market is playing the earnings have troughed and we are in an early earnings rebound cyclical that has to pay fruit in 2024 even as the real economy didn't have much of a setback. i think the bar is relatively high from this point out in the second half of the year. given where seasonals are and all the rest of it uber, the stock has had a massive run, however, trading in the mid-40s four years ago it's kind of at a time where the fundamentals are supposed to be, you know, coming through in the way that people thought they were going to a few years ago. >> seems to be head scratching it at this point, we've seen the rally broaden out and money go into industrials and financials. at the same time, big tech holds up, earnings season is baring fruit. it's like every environment is an environment that benefits big

cap tech and value parts of the market. >> it's not a zero sum game. even though we treated it that way when only seven stocks, it's not case bull markets are environments where multiple things can go right at the same time and i think you can argue that's what we have. on a month to date basis to your point, the equal weighted s&p is neck and neck with the nasdaq 100. both higher. to me, the relief about the economy and giving credit to the soft landing scenario, that's been what's lifting the boats. when it comes to the biggest tech stocks, momentum is a phenomenon, a.i. excitement, who knows what the right multiple is for that you are starting to see a little bit of chop there, right microsoft hasn't made a lot of headway. >> i thought that was good action, the differentiation between microsoft and google. >> by the way, market wide, correlations among different stocks are at rock bottom levels that's another thing that

happens during earnings season and uptrends not seeing things move as one, seeing a lot of winners and losers. >> anything that represents a land mine in terms of earnings or - >> i don't know if it would be a land mine. i just do think it's about the eye of the beholder effect when it comes to the amazons and apples and what exactly did we pricein here with the moves those stocks have made at the same time, yields are calm today credit looks fine. the macro stuff is very i think comfortable for the equity market but if oil keeps running and we're starting to talk about you know what, wage growth is strong, the fed has to go in september, that could be an excuse for dog days august and september are not the best for stocks. >> thank you mike santoli. let's stick with the markets. our next guest views the tech related dominance as unsustainable. dan from richard bernstein joins us now always good to see you

you've had this take for a long time and have missed the rally what makes you think this time it's going to -- that's going to come true? >> well, i think we've spoken about this several times in either scenario you play out, it doesn't benefit the narrow leadership you're seeing in the positive scenario where things are getting etter, as mike was just alluding to, there's a lot of stuff out there, their earnings are going to benefit a lot more. they trade at a fraction multiple if things get worse there's plenty of better places to hide out where they have much more resilient earnings trends. to me, it's not that these stocks can't do okay, but i think there's better places to take that risk there's plenty of things, if things go wrong and there's a number of ways that can happen, these stocks are probably, you know, the epicenter of where the risk is in those scenarios. >> do you think that there's inherent fragility to this rally

because, you know, it's the gains are focused in these top seven stocks >> to some extent, melissa, i think you're right this was a tale of two markets with these stocks being such a big portion of the market, it does, you know, add some fragility to the overall market rally overall. so i think there's definitely some truth to that the way i look at it here, there's certainly some positives. i think the profits are -- they look like they're in the process of bottoming and that's incredibly positive, particularly for the more cyclical cheaper names out there, but overall for tech as well when you think about the risks you have an expensive market, as mike was alluding to, the expectations for earnings are really high and there are risks to that earnings outlook here and the liquidity to the extent that growth is good, that puts liquidity risk from a policy perspective, but if things get worse in the run in capital

market lend equity there's risks that would dry up. if you think about what gets hurt in all those different scenarios, i think the leadership that you've seen this year is probably most vulnerable with valuations we see today in the past you've liked china over u.s. markets, and i'm wondering if that still holds, even though we have been seeing the hope for stimulus out of beijing to the degree investors had wanted it. >> yeah. i think with china, you know, one of to admit we have to admit that, you know, things haven't been, you know, the typical type of recovery coming out of, you know, major recession, a property crisis and zero covid you think just with the low base you would have had a fast recovery, but it is a recovery nonetheless and i think in a world where, you know, growth is decelerating, almost the entire world is in a global earnings recession to have china that's actually seeing its profits accelerate

accelerate even at a slower pace, that's a stronger story. the liquidity story behind that where they're trying to stimulate liquidity, stimulate policy and credit growth, nobody wants to own that story, that's a much more favorable risk-reward type. >> dan, nice to see you. thanks da dan sue zu question. >> the tide is turning for sweet green. the company's ceo later this hour plus that's not all we've got from the c-suite sofi's ceo anthony noto. the shares up are on the results. no consumer slowdown in sight. chinese tech stocks some of the biggest gainers on the nasdaq 100 for july. are there risks to the rally here we will discuss that next. we have a big show still ahead stay with us

chinese technology companies such as pinduoduo and jd.com are the biggest gainers on the nasdaq 100 in july deflation warnings are now growing around china's broader economy. let's get over to eunice un from beijing and get her take on what's going on on the ground and what people are concerned about. >> thanks, david similar it in the u.s., investors here today were betting that beijing would consider more stimulus for the economy, what they've described as a torturous recovery. the economic data today was,

again, reaffirming real problems in the economy the factory activity, the pmi contracted for the fourth month in july at 49.3. services and construction closed in on a contraction and that, of course, suggests that we will see further downward pressure on the third quarter. another data point that people were watching was the decline in new orders for exports that was another indication that global demand for chinese goods remains weak the government, specifically the economic planner, unveiled a new set of policy documents to help boost consumption. these are 20 mu menew measures, they're hoping to unlock chinese spending power with them they said they were going to look to boost sales of cars by building out ev infrastructure even faster. they wanted to stabilize housing like increasing affordable

renters and then with the services they said they would cut emission fees for tourism -- admission fees for tourism to get that going and developing rural areas, logistics, shopping malls in those areas to unlock that potential there are a lot of questions as to how effective this is all going to be. for example, separately some of the chinese cities including beijing said they would be rolling out more housing policies, however there are no real specifics on that then, finally, there's been a lot of talk here about how more direct fiscal support could be used and needed by consumers as well as companies and we did not see that in these latest measures guys >> eunice, one concern is simply the indebtedness of the average chinese family, how much debt they have on their so-called home balance sheets, so to speak. can you speak to that and/or

whether some of the newest moves to stimulate are going to be successful or is it going to take overall debt reduction to get chinese to start spending in a more vigorous way? >> well, i think the concerns about debts for households and generally for a lot of companies, is a major concern. that's what most people believe is one of the reasons why the authorities have been so reluctant to try to unleash more stimulus when it looks increasingly obvious that stimulus is really needed here to help stabilize growth. >> eunice, one other story making the rounds here unin the u.s. is the lack of availability of high end -- to chinese semiconductor manufacturers or those who need them for other products is that starting to be felt on the ground as well in terms of a potential -- something that is causing a slowing in economic

growth >> oh, absolutely. that's definitely the -- been a huge concern, not only about the impact on economic growth now for the moment, but also for the government's ambitions as well as a lot of chinese companies within the tech sectors, their ambitions to try to make the country a technology leader. a big concern among people here, especially in the tech sector, and those, of course, in the government who want to really see their vision realized. >> eunice, thank you eu eunice eun in beijing. sweetgreen shares after results friday sent the shares of the fast casual chain plunging the company's ceo will join us quk t see iba down the numbers. "sawonhetrt"s ck right after this ♪

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check out shares of sweetgreen they are rallying after plunging on friday, weaker than expected quarterly results pushed the stock down today you get an upgrade from piper sandler to overweight. they're saying, by the way, they think the tide may be turning.

joining us at post nine for his first on cnbc interview is sweetgreen ceo and co-founder jonathan neman good to have you here. ♪ >> you want to explain to investors what you think may have happened to the stock in response to earnings friday and the rebound back to flat over two days >> absolutely. this is a big quarter for us we expanded our margin to over 20% for the quarter. we saw comp store sales of 3% with positive traffic. we grew 22% year over year leading to our first adjusted ebitda profit as a public company. all to say we're proud of the results, and it brings a lot of momentum. >> why has it responded negatively to on friday and then today seems to be regarded differently, do you know >> we missed slightly on the top line with revenue and i think we have a lot of things we're working on to continue to drive our comp store sales if you look at the overall picture year over year, 22% growth reducing our loss from where we were last year, i think people are starting to see the sustainability in the business

model and all the investments that we've made over the past few years really starting to take hold. >> what would be an example of that, that is something that's going to bolster your ability to increase that top line significantly? >> there's had a few things we're working on one thing we launched this quarter was a new loyalty program. it has a free version with rewards and challenges as well as a membership program where for $10 a month you get $3 off every day. we're seeing great result there's and bringing more people and creating that habitual nature with our consumers. another is a lot of things we're doing on the menu. we continue to expand our menu, bringing heartier and craveble items that really expand our day part and broaden our consumer. earlier this quarter we launched the chicken and chipotle pepper bowl pushing into again that heartier taste profile right now we have something out called the barbecue chicken bowl people are loving and we have a

few more menu items throughout the year we expect to continue to drive customer acquisition. the last is what we've done on the restaurants focused on our guests and seen huge growth on our front lines, focused on that hospitality and through put, so we've increased our speed of service at peak times which is, again, a driver of growth for us. >> i frequent your restaurant right down here actually employee turnover, i'm always curious, training new hires, to your point, getting them to that point where you want them, how difficult has it been to hold on to people over time giving the changing nature of the labor market >> i say people are the most important ingredient in the sweetgreen formula during the pandemic it was a very challenging labor environment. what is exciting is our turnover is the lowest in many years and we're seeing much greater retention of our head coaches and general managers and creating that team stability which translates into the guest experience

all to say we see the environment getting significantly better we started piloting tipping in some of our restaurants so we think that will continue to help create an incentive for our it team members to stay. >> infinite kitchen won't that automate much of what goes on to sweetgreen, to lessen your dependence on labor? >> the infinite kitchen we piloted this quarter and opened our first store in chicago, and the idea is we've invested in this technology and built this technology that automates the assembly of making our bowls we've seen awesome results perfect portioning, you see through put of almost 500 bowls an hour, so over 50% - >> 500 bowls an hour >> correct. >> does it matter the -- if david wants the peach harvest or whatever, but hold the peach, peaches on the side, the robot can do that? >> fully customizable, around the bowl, perfect consistency and really consumers are loving it our team members are loving working there.

we still do all the prep in-house you see us cutting the food, washing the food, roasting all the vegetables. >> only the preparation that is done by nonhumans? >> correct only the assembly. you have one of our wonderful team members, taking the bowl and finishing it off with the final few ingredients. >> how big can this get? >> the idea over the next five years to roll it out amongst 200 plus restaurants >> we're going to start by rolling it out in future stores. a second store opening at the end of this year with infinite kitchen. next year a part of our pipeline and over time we see opportunities to retrofit our fleet and eventually all new stores equipped with an infinite kitchen. >> what is the labor cost profile in the naperville store versus a regular location? >> so, in its first month of operation, which typically we see a lot of ramp happening, we were in a 26% margin at that store. we see some upside to that over time and do think the margins should be significantly higher

than the rest of the fleet. >> when you speak about margins overall where are you in terms of what you're targeting for margins? i think where were you, rlms 15.2%. you know - >> we were over 20% for the quarter. our goal is to get into the low to mid 20s over time as we continue to scale and build efficiencies into the business we've done a lot around managing our labor in a better way and we've, you know, done a number of things around labor deployment as well as our supply chain so made investments in our supply chain that have allowed us to scale in a more profitable way. >> what's your sense on price? i know during this period, particularly over during the pandemic, but even since then, i'm paying $16 to get a bowl. >> wow. >> that's a big number where do you sort of see the elasticity in terms of how far you can push prices? >> there's been a lot of inflation over the past few years. one thing we're proud of is the price we've taken relative to our peers has been less. you're seeing the relative value of what we sever sus our

competitors. sustainably sourced made from scratch in store every day we've taken about 4 points of price, less than the industry and we have no plans for further price increases this year. we're judicious about it and want sweetgreen to be something to enjoy daily but also want to make sure we can cover the right amount of price that can pay our farmers the right way, pay our team members the right way and provide the quality experience. >> jonathan, appreciate you stopping by. nice rebound in the stock today as well. it's up 13.5%. keep doing what you do see that. >> thank you. >> stay here longer, and it keeps going up. >> i love it thank you. great to see you. >> brings us salad, right. >> got to bring my peach salad. >> yeah. >> still ahead the ceo of sofi giving us his read on the consumer as they post results. we're back in two.

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welcome back to "squawk on the street." i'm pippa stevens with your news update the kremlin says it will step up russia's air defenses following a new wave of ukrainian drone attacks. russian military officials are accusing kyiv of carrying out the attacks to compensate for struggling counteroffensive on the battlefield. ukraine's president said sunday the war is returning to russia, calling it a, quote, natural and inevitable process a "new york times" and siena college poll shows former president donald trump crushing florida governor ron desantis in the race for the republican presidential nomination. desantis, trump's closest challenger, is behind by 37 percentage points according to the poll and trump leads him in nearly every category and region. a judge temporarily blocked arkansas from enforcing a law that would allow librarians to be criminally charged for

providing harmful materials to minors the law also created a process to challenge library materials and put them in places kids can't access it was set to take effect tomorrow back over to you >> pippa, thank you. we are just about an hour into the trading day, let's get to bob pisani with more on what is moving here fairly quiet day. >> final trading day gentle upswing three to one advancing to declining stocks the broadening story is continuing take a look there. energy, bank stocks, metals and mining, broadening out, tech, generally, lagging that's the story all month, health care, generally lagging as well. consumer staples let's take a look at the big cap stocks here. not only is big cap going up, but some of them are coming to the downside i look at microsoft this

morning, almost 10% off its recent 52-week highs amd, 15%, salesforce, 7% off its recent 52-week high. so keep an eye on that you want them flat you don't want them declining because you need tech to keep participating to help the market keep moving forward. leadership this month, there's the broadening out i mentioned banks up, a move up 17%. remember they were 40% off of their highs beginning in march the banking crisis energy stocks, metals and mining, industrials leading the way. technology lagging a little bit. health care and consumer staples lagging here it has been a remarkable kevin months we haven't had a 1% downday in the s&p 500 in two months. i believe it was the last week of may that is a rather remarkable run of positive moves. we'll close higher for five consecutive months that hasn't happened in a long,

long time. that's a very unusual statistic. the rally is broadening out as i mentioned here the drivers of the rally have been the soft landing. important thing about the soft landing we're seeing, lower inflation, slower but strong jobs growth and rates stabilizing and that rate stabilizing is the absolute key and that's the risk to the market right now the other story is earnings have stabilized they went down in the first half and been stabilizing and the market analysts are projecting a u-shaped recovery in earnings in the third quarter. the p/e ratio, because the earnings haven't been going up and prices are, the multiple, p/e ratio has been expanding and a lot of people arguing we're at the top of that, almost 20 times forward earnings right now the drivers for the final five months of the year, we've got to see the data supportive of the softlanding and get the jobs report next. if we get a strong jobs report it could drive rates up again. you get the 10-year over 4%, the market has a problem and that may be an issue for the next

week or so here. we need that earnings to ramp up i mentioned a u-shaped recovery. second quarter the trough earnings they have earnings going up every quarter into the second quarter of next year almost 14% increase in earnings in the next year and as i mentioned we have to have the rights remain stable where are we flat the new up. 4560 to 4580 or so we've been moving around here. we're still essentially at 52-week highs. it's hard to argue with the rally here i mean, everyone is converted to the softlanding camp and that's the problem. you know the pain trade now is market moves down, some unusual like rates go up all of a sudden that's the risk for the market. >> especially the 5% earnings at 20 times that's where we are. we're kind of equal to the bond market. >> that's traditionally a problem. it makes stocks less attractive when you get that relationship equal. still, i mean, i have plenty of people, that call me up, my mother called me up, should i

keep my -- >> glad she called you. >> calls me all the time. >> keep my money in the yield. she stays in that one-year treasury yield, her bank cd rate pulled the money out of her savings account and put it in a bank cd and should i put money in the stock market? listen, 5% is nothing wrong with that right now, but you're under performing if you're not in the stock market this is why you stay in the stock market and don't try to do market timing. it makes people like my mother crazy. >> say hi for me. >> i will. she always asks about you. >> i appreciate that. >> she watches. >> bob, thank you. >> okay. let's turn to financial services now sofi shares are surging this after the fin tech company reported a slimmer than expected loss it had strong deposit gains, and it also boosted its guidance joining us the company's ceo anthony noto great to have you. you know, your adjusted ebitda, 77 million, 16% margins.

10 full points above a year ago, and i'm curious what you did and what you're continuing to do to see that margin improvement? >> first, david, thank you for having me. the biggest thing web we started to architect a businesses five years ago, over five years ago in sell when i joined, we focused on having the right product. four lending products, checking and savings, invest product a credit card product and each one we architected so they will have high variable profit we're getting to the point now where our financial services segment is starting to be profitable the lending business has been profitable the technology business also pretty profitable. but we've made a big investment in the last five years in building out the number of checking and savings accounts and acquiring them and credit card and invest. we're now to the point where we're covering all that acquisition cost we only lost about $4 million of contribution losses in that

segment, which improved $20 million versus q1 and in q4 it it was negative $44 million. what we're starting to see is the scale of that profit exceed the acquisition cost which is dropping to the bottom line. great leverage in the business incremental margins at 40% on ebitda basis and over 30% in a gaap net income basis. >> the promise of it seems to be helping shareholders feel confident about buying the stocks you're paying a good amount, over 4.2, 4.3%, but 2.7 billion sequentially, how important is that for you in terms of fueling, you know, your ability on the other side of the balance sheet? >> it's a critical point in driving both growth and profitability. those deposits are actually a lower cost of funding for us than using warehouse lines and we've had the bank for about a year and a half and added more than $2 billion of deposits sequentially each quarter, 2.7

this quarter the interest we're providing is 4.4% epy on savings if you do direct deposit but that's a lower cost than what waefld be paying the big banks it's a more stable type of funding. 90% over nearly $13 billion of deposits is from direct deposit customers. we want to have that priory relationship we benefit in two ways we have the spending they do in that checking and savings account but their deposits have fueled the growth of our lending business and we're one of the few banks not only provide a high apy and deposits, but we use those deposits to drive even better returns through our loans which have high yield, higher than 4.4%. >> we're showing the stock chart and the stock has had a monster run, up 150% almost. even since mid-may the stock is up about 75% and a lot of that is on the move by congress to say, you know, folks with student loans you have to pay in the fall and also the supreme court knocking down president biden's debt forgiveness plan.

some analysts on the street are worried about that notion that there is a big opportunity around student loan refinancing, that that is perhaps smaller than what investors think there should be, and i'm wondering if you could walk us through what you're seeing so far and dress the concern. >> the interesting thing i would point out in this quarter is we had our ninth quarter of record revenue driven by record revenue in our technology platform revenue, not lending, and our financial services business which also had a record quarter. the first time in our history in our ninth quarter that record was driven by these two nonlending businesses doing so well our lending business has continued to do well also, but the diversification is recognized relates to student loans, there's 40 million americans that have federal student loans haven't refinanced sophie has not financed more than 1 million on their federal student loans. still 39 million to help lower

the cost of paying back their student loans. this quarter our student loan business was depressed we don't expect to see a meaningful pick-up until the end of the year and 2024 the larger thing i would focus everyone on there's 40 million people that have expensive federal student loans and we can help them lower their costs on an interest rate basis and a monthly basis studying the terms. >> what are your expectations in terms of that business i'm curious how many people are actually going to go about repaying the loans after not paying them for so long? or whether they're going to ignore them? >> it's a very good point. our member happens to be high end so we only underwrite prime credit or average fico score is over 750 and average household income is over $125,000. so these are people that are capable reef paying their loans and it will be wise thinking through can they lower the cost of that loan now they have to start repaying it.

we'll provide attractive rates for those that have high rates but also extend terms for those people that want to lower the monthly payment. one of the things not well understood when y refinance with us you can refinance it over and over as rates go down. no closing costs or origination fees if you want to still pay what you would have otherwise paid before extending the term you can because there's no prepayment penalty. >> you mentioned, of course, your average borrower so to speak. i think weighted average income i see 164,000. high fico score. what are your expectations and seeing amongst those who borrow from you in terms of their ability to repay, but also their ability to spend i'm curious to get sort of a broader sense from you in terms of your thoughts about the economy as we head towards the second half and end of the year? >> i think we'll be an outlier to the average consumer. so what we're seeing in our personal business is our net charge off rate that percentage actually went down sequentially.

we anticipate it will normalize back in 2019 levels, but we haven't seen it yet as i mentioned it was down sequentially in terms of spending, our spending per account if you annualize q2 spending is 2 x more than what people spent in '22 but again we have an outlier customer, higher end, extending market share from traditional banks so it's not a cyclical read, more of a secular read i don't want people thinking that our rregionals are indicato the economy. that guidance assumes we have a modest recession and unemployment does go above 5%. >> okay. that's a good place to sort of end it as well but, obviously, you're being rewarded for a strong quarter. appreciate you taking time with us. >> thank you for having me meantime energy the top gaining sector let's get to dominic chu who has more on that.

>> energy, by far and away, the best passengeerforming sect and tracking for the best monthly gain since october of last year. today's leaders include chevron, which is by the way, higher after analysts at goldman sachs upgraded it to a buy from a neutral rating they cited the oil giant's return and under performance compared to peers other leaders include exxonmobil and halliburton and schlumberger on oil services those as oil prices notch their highest levels since mid-april keep an eye on the prices. and those oil services companies now, melissa, i will send it downtown to you at the stock exchange. >> thanks. coming up, the growing battle between the sec and crypto exchange coinbase as the shares continue to surge on the year check out shares of sharp ninja, surging in the spinoff debut on

the new york stock exchange. 35%. halted a couple times this ssn. the company's ceo will join us in just a moment don't go anywhere.

this is your moment. critics declare oppenheimer is magnificent.

the new york times calls it staggering. it's utterly enthralling and one of the best movies of the century. despite maybe because of strong economic data last week, many on the street still wondering about the odds of a soft land org any landing at all. here with his rapid update is economics reporter steve liesman. >> i'll try to read it slowly. surprisingly strong consumer spending and income reports last week as economists sharply boosting their outlook for economic growth for the third quarter and raising the question if it's going to be a slowdown at all or landing at all economists raising the opening forecast for the third quarter to a trend like 1.7 from a poultry 0.3% that was from our june survey. this follows a pattern where you can see in the first two

quarters of the year in the left of your screen forecasters have trailed the economy as they've had it wrong on the downside the slowdown has now been pushed ahead again, this time to the first quarter of the year and the first quarter of next year a warning it's way early here, there isn't much data and these forecasts can and will be revised as the actual data come in the way gdp is calculated, consumers do not need to raise their spending in the rest of the quarter for spending to end up healthy because june were strong the forecasters in the survey are much closer with their inflation outlook. as of now they see inflation coming in at 4.2% this quarter, dropping to 2.9 by the first quarter of next year one result of declining inflation, year over year growth in real disposable income now actually above prepandemic levels, so consumers should have the ability to continue spending, though as you were talking about in that segment

with mr. noto there, some of that spending power could be zapped by the resumption of student loan payments. mark zandi is boosting this third quarter warnings but warning a government shutdown in the fall and cut back in government spend willing slow gdp to near zero in the fourth quarter. back to you. >> steve liesman, thanks. new details emerging around the sec's legal action against coinbase ceo brian armstrong telling the "financial times" the agency asked the crypto platform to halt trading other than bitcoin. suing the exchange for failing to register as a certified broker the sec tells the ft its enforcement division did not make formal request for the companies to delist crypto assets in a statement, views shared in the ft article may have represented the views of some staff at the time but did not represent those of the commission more broadly. all right. still to come on semi is adding to nice gains on the year after

result of the company. we'll break down the results and the ceo will join cnbc in the 11:00 hour first the ceo of shark ninja, just went public at the new york stock exchange its stock is up sharply. dot awhe.n'gonyer ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪

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sharkninja debuting spinning off from the hong kong list of jk lifestyle posting net sales of $4 billion at the end of last year. ceo joins us at post 9 thanks for joining us. >> thanks for having us. >> what is your sales pitch to investors, when i hear home, small appliances, i think thin margins, how do you differentiate yourself versus a lot of competitors who might come out with copycat, cheaper products. >> sharkninja is a consumer problem solving engine we solve problems that others can't. we do that across 27 different product categories it's a highly diversified business we're in 25 markets around the world.

we go to market under two really well respected billion dollar brands, shark, which is a market leader in cleaning and floor care and beauty and home environment, and ninja, which sells products all around the kitchen as well as outside with the launch of our ninja wood fire outdoor cooking products. >> how do you defend that margin there are probably a lot of copycat products on the market to consumers who might be more cost conscious these days with inflation higher, they might be looking around and go to alternatives. >> so, melissa, we have a team of over 700 engineers around the globe that are developing products and i think there is a few things that we do better than anyone else in the marketplace the first is our speed to market our team of engineers that we have in boston, london and china are developing products 24 hours a day. when the team in boston goes to sleep at night, that is transitioned to china, goes to london and that cycle continues seven days a week.

>> how long is that cycle? what is the fastest -- >> in as little as nine months in some products, which is extraordinarily fast when it comes to hard good products. the second i would say is performance and multifunctionality any shark or ninja product you buy is going to have market-leading performance, power, multiple functions of the product. the third, i would say, is high quality and reliable our products are really built to last fourth, extraordinary value. i mean, when you read reviews about shark or ninja products, the consumer really feels like they've gotten their value, they've gotten thursday money's worth. >> your core competency would be, what, engineering, the ability to adapt to changes in the marketplace very quickly >> our core competency is both our consumer insights team of identifying consumer problems and then these team of engineers and innovators working to solve those problems and to do it at the scale that

we're able to do it at is extraordinary. >> you're talking about, i mean, annual growth rate on your top line is pretty significant, 20% here can you maintain that kind of growth rate? >> so, sharkninja is not an overnight success story. we've been at this for over 20 years. we've grown our business 14 out of the last 15 years over the last 15 years we've grown at compounded annual growth rate of 20% a year, which far exceeds the industry - >> can you keep it going is my question >> we feel we have three pillars of organic growth. we've never acquired a dollar of revenue in the company's history. the first is growing share in the existing categories that we're in we're in some big, definable categories and the shark and ninja brands have a demonstrated track record of taking shares in those categories the second, expanding into new and adjacent categories.

the third is global expansion. we have a fast approaching billion dollar business outside of north america, so there's real scale there >> and finally, mark, what changes for you as now a public company and not part of a larger companies you were previously? >> we're going to continue to keep operating off the playbook we have over the last 15 years i mean, keep giving consumers great performance, great quality, extraordinary value, do that in more markets, do that in more categories and we think we're just getting started. >> so nothing changes? >> nothing changes >> but you have your own balance sheet now, you have your own stock price. >> so, you know, sharkninja, you know, a majority of sharkninja was acquired in 2017 i've been running the company for the last 15 years. the business will continue to operate as we always have. focused on our mission, which is positively impacting people's lives every day and every home around the world >> mark, thank you good to see you. >> thank you

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good monday morning, i'm melissa lee along with mike santoli. straight ahead, the ceo of on semi will join us. the ceo of xerox is here as well a check in one year into the job. plus post-earnings reaction as losses there widen. later, rockefeller on why big tech leading the way on a.i. is dysfunctional. market holding onto last week's gain. modest moves s&p 500 up about 0.8%. small caps are outperforming again. russell 2000, the 2,000 level on the russell 2000 has acted as a bit of a cap over the last couple of years but we're challenging it once again.