good wednesday morning i'm carl quintanilla top of mind were investors today, this historic downgrade of u.s. debt fitch ratings head of the americas richard frances will join us to defend their call plus, immediate reaction from counsel's economic advisers jared bernstein as the white house pushes back hard on the timing of the call >> then, a c-suite double play the ceo of teva pharmaceuticals with us. big boost for that name after an earnings beat and raise. and later, match group

leading the s&p this morning after their results. the cfo joins us this hour for an exclusive big news of the morning, fitch downgrading u.s. long-term credit to aa plus to aaa it is the second downgrade ever by a major agency after s&p back in 2011. joining us first this morning on cnbc, the interview with the man behind that call, fitch ratings richard frances. great to have you with us. thanks for the time. >> thank you >> i would love to know, sort of, your -- some color on the timing and the thinking behind the call now as some have pointed out, some of your quantitative models have been on the mend the last six months or so >> yeah, i mean, honestly, this is a steady deterioration that we've seen in some of the key metrics for the united states for a number of years. in 2007, general government debt was less than 60%. and now it's up to 13%

there's been a clear deterioration. furthermore, we're expecting physical deficits to rise over the next three years and we expect debts to continue to rise over the next three years. and furthermore, because of the higher interest rates and the higher debt, we're now seeing the interest rise pretty fast, actually, in the case of the united states. so the underlying numbers, especially in the fiscal andr quite negative >> when it comes to the argument about governance and responsibility, government responsibility, why not -- i know you reference january 6th as part of this call why not do this a couple of years ago? >> yeah, i mean, i think, again, like the debt and the fiscal burden, we've seen pretty steady deterioration in governance the last couple of decades, and i think you can highlight a few key elements, one would be to generate this, but secondly, more importantly for us, is the

constant brinksmanship surrounding the debt ceiling, the debt ceiling debate, the fact that the government, both sides, republicans and democrats, haven't been able to come up with kind of meaningful, long-term solutions to deal with, you know, growing fiscal issues, especially around entitlement programs, with security and medicare. i think these are the type of things that highlight the importance of government, but also, the inability of the government and both parties to come up with some kind of solution >> so i know you talked a bit this morning about the -- what would it take to get an upgrade back some sort of sustainable sign that governance is on the mend can you talk about what that might look like and whether or not the deal that we got this summer is any hint towards that directionally? >> yeah, i think there's a couple of things that we probably want to see one would be some kind of

solution long-term, fiscal solution, tackling the entitle program, for example willingness to somehow look at the revenue of the picture and the spending side of the picture, and actually bring down the deficits enough to at least stabilize the debt-to-gdp, which i mentioned is already like three times the level of the aaa medium it's much harder than the aaa median and much harder than any other country, actually. and it's even higher than the aa category so first tackling, you know, these type of issues, and you know, honestly, the debt ceiling itself, you know, is, you know, kind of suspending it or getting rid of it somehow, that would actually help as well. because the idea that the united states reaches an x date and all of a sudden cannot pay its bills, we don't need that consistent with the aaa, either. >> richard, looking at the criticism that your downgrade doesn't acknowledge the major differences of opinion about the fiscal outlook, you're very much

expecting with this downgrade, a recession in the fourth quarter. but how do you respond to the fact that many people disagree with that? >> yeah, you know, honestly, if we go into recession, or a further recession, it doesn't really move the needle in terms of what the underlying thing we're looking at it won't change the physical picture that much. it will not stabilize the debt and it doesn't begin to tackle these government issues. so, yes, the economy is very important, key in that it does, it could have an impact somewhat on the fiscal picture, but not enough to really move the needle so the idea that the economy can somehow can skirt the recession and there should not be a downgrade, that's just not really what we're looking at we're looking at more kind of fundamental picture of the united states' creditworthiness, and also kind of what we expect to happen over the next few years. >> and the jobs market has been remarkably resilient and we continue to get more jobs

numbers even out this morning. what's your response to that and does that impact your outlook at all? >> again, it's a similar story, i would say, to what we just talked about in terms of the economic outlook obviously, that's good news, good news for revenues it's good news for the underlying economy one of the things that we have noted and do note as a strength of the u.s. is the fact that it's a large dynamic economy very, you know, very wealthy, you know, per capita income, which supports tax revenues. we do recognize that and the second big factor that we look at in terms of the sporting factor is the role of the u.s. dollar. you know, it gives the u.s. government tremendous flexibility in terms of financing things so these are strengths of the u.s. we're just saying that given the high levels of debt, given the increasing deficits that we're expecting, and given the kind of deterioration in governance and unwillingness to really tackle these issues, we don't think

that that's worth a aaa anymore. but aa-plus is still a very high rate the second highest rating we have >> good point does it surprise you that the dollar index is higher today and that it's above the 50-day >> yeah, like i said, i don't really pay a lot of attention to day-to-day moves in the market we look kind of more at the fundamental picture and i would be looking at these indicators more on a few months, at least, maybe a year basis, instead of what happened today or what happens in the next week or so >> richard, really appreciate the guidance and the color behind the call very much. richard frances at fitch ratings, thanks. >> okay, thank you >> joining us now with his reaction to this historic downgrade, council of economic advisers chair, jared bernstein. i know you were listening into this i know that you've been following this conversation. what's your reaction to the downgrade? >> well, i must say, the

cognizant dissidence that i think many felt from this downgrade was not at all diminished and in fact was amplified from the discussion i just heard nonpartisans describe the fitch decision, i'm quoting from things that were said yesterday and today bizarre, inept, strange, puzzling timing, which i thought you got at a little bit. look, fitch relies on a quantitative model in which creditworthiness deteriorated significantly under president trump. and for good reason. they give governance a significant weight and if you look at the movements in that model under president biden, as soon as he got here, it started to track back up towards aaa. so the timing here makes no sense. if you think about the kind of bipartisan measures that this president has presided over, whether we're talking about the bipartisan infrastructure law, the pact act, the chips and science act, and particularly the fiscal responsibility act,

which not only resolved the debt ceiling in an overwhelmingly bipartisan matter, but took along $1 trillion in deficit reduction with it, the decision just seems, as i said, just bizarre and arbitrary and against even their own estimates. >> jared, i understand that you see this as a lagging indicator. but how do you address fitness concerns about the rising government deficit that's really fundamentally what this is about. >> so, i think, again, the timing issue is turning in here. the deficit went up every year under president trump. the debt-to-gdp ratio rocketed under president trump. it has stabilized admittedly at a higher level under this president, but we're doing all we can to try to ameliorate those tensions and the proof is in both the movements in the actual deficits down $1 trillion under the president's watch thus far and as i just mentioned, another $1 trillion of deficit reduction

in the fiscal responsibility act. and look at the budget the president proposes $2.6 trillion in deficit reduction over the next ten years. so we are doing our best to rtr to address these fiscal issues, because they matter a lot to this president, and he has a solid track record on that front. so the idea that you would then somehow fail to do so this under the prior administration, when these fiscal measures were massively deteriorating, and then go a notch down, when we're not only trying to move in the other direction, but actually having some success in moving in the other direction, it makes no sense. >> so one reaction to the treasury secretary's statement was that we were caught off -- what caught our attention was the implication that fitch was going on, and i guess how much do you believe the administration will lean into that, and does that preclude the ability to find further negotiations, further bipartisan consensus regarding these things in the future? >> oh, we are going to continue to work for bipartisan consensus on these matters

there are democrats and republicans who recognize the need for the kinds of fiscal consolidation that the president has put forth in his budget. now, we're going to have a lot of arguments about how to get there, no question he obviously has a very progressive tax plan, which emphasizes taxing wealth and relieving work and that's a plbalance that's vr important to him and we can have that argument. i don't want to get into who's political and who isn't here i do think that the timing is just very strange in the ways i've said. you know, basically, fitch seems to be punishing the cleanup crew when the guy who wrecked the room is long gone. so i'm not getting that. >> are your eyes on moody's and what they may do >> bell, we're always going to be paying attention to the rating agencies, but much more attention will be -- are being paid to, of course, financial markets, and how they're

reacting and i think both in 2011 when this occurred and this case, investors are a much better judge of the reliability, the safety, the critical importance in financial markets of safe, reliable, american debt. and, you know, their analysis is miles more important than that of fitch and thus far, we think that they have understood that thequalit and safeties of u.s. debt remains pristine as ever >> so given the timing of this, do you think there will be an impact on the debt markets, and what's your message to investors right now? >> well, i don't think that we from the white house typically, you know, message investors. they're going to look at the things they're going to look at. i think what our job is to do is to make sure that the overall economy is expanding in a way that doesn't just hit the macro targets, but reaches american households

so when we have a gdp that came in at 2.4% in the second quarter, but we also have real wages growing and the unemployment rate below 4%, from over a year and a half, when we continue to generate record job numbers, again, on behalf of american households, getting the middle class some real breathing room with inflation coming down two-thirds from its peak, we've got more work to do. but that's what our focus is on. we're not trying to time the market, manipulate the market, or even, you know, on a daily basis, look into it all that close. what our job is to do is to make sure that we have a sound, growing macro economy that's reaching american households that's bidenomics. and from the recent data flow, with i think we're having some success. >> so jared, at this point, is your focus on seeing continued declines in inflation, or are you looking at, you know, atlanta fed's for q3, and focusing on prolonged growth, even though that might make

these last hundred basis points of cpi more difficult? >> oh, i think to get a beat on where inflation is going, you really have to kind of take it apart. and if you look at the various components, so, if you look at, say, core goods inflation, that's been coming in considerably lower than it did a year ago and that's because we see supply chains, and that's obviously an important part of this if you look at housing inflation, that's rolled over in the c pi in terms of rent and owner-occupied rent. those measures have come in considerably lower than they did. so that leaves gas, foods, and services and that's a pretty labor intensive part of the index. as labor market cools, we should see some easing there and we've seen some of that. energy and food inflation has also come in recently. so, look, we have to watch every one of those trends.

we're not really in the business of forecasting month-to-month. but if you look at the forecasts out on the street, they generally do have these trends broadly persisting >> well, we're going to have to leave it there jared, thanks so much for joining us this morning. >> my pleasure >> important conversations there. when we come back, teva pharmaceuticals is looking to claw back some lawsuits after what's been a tough year for the stock. big gainers this morning ceo will join us later this hour for what's next in its drug pipeline >> plus, we'll get results from pinterest and match group. match group's finance chief joins us with the stock giving up some earlier gains. that's coming up when "squawk on the street" returns.

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take a look at shares of pioneer natural resources. nice pop for that stock post-earnings. it's now up about 2.5% with a headline from the conference call that pioneer sees oil pricing between $189 for the rest of the year and into 240. shares up now 2.4% turning to ai this morning, we talk a lot about how the trend is driving major gains in the tech sector, but how might it help investors on the back end of trading as the world becomes more data driven, technology including ai and machine learning will continue to play a bigger role in market making joining us here at post nine, bank of america, head of e-trading and market strategic investments, sheinelly pieson. nice to see you. >> i'm wondering, what

efficiencies come to the back offices as a result of these trends >> as we're seeing in the news today and with earnings, ai is becoming a larger part of the discussion it needs to be controlled. but there's certainly, i think, with the right controls, having human oversight over what we do, it will continue to play a bigger part in the fixed income market within our global markets business, we incorporate machine learning into a variety of our algorithms we use it to help make short-term predictions on where a bond or a stock might trade next we use it to help us calibrate the distribution of best business and best offerings in the market or model the likelihood of winning a trade. and it's becoming increasingly important to our clients, because the world is becoming bigger and bigger. the asset classes are growing. it's 25% growth since covid and fixed income bonds so as the world grows, we need to be able to service our clients, and these strategies are really becoming a differentiator in the first half of 2023, despite the volatility at bank of america, we department have a single day of trading losses and

it was largely because of these quantitative tools that we were able to put in the hands of our risk managers and our traders. >> you used the word control that indicates there's a potential downside risk. we've talked a lot on this network about the potential downside risk about ai and generative ai. what do you see as the biggest risk that needs to be managed in its deployment >> so, when we're talking about what we incorporate, we're talking about things like machine learning, natural language processing today. and when we talk about generative ai, creation of content data, that's a whole another ball of wax. and that's going to need a lot of research and rigor before it can be implemented into market there's certainly risks, liabilities, you're seeing obviously, focus on this area by the regulators so i think that is a longer-term story. it's going to take a lot of research and rigor >> within the bank, is there a debate is there a contingent of trade s that say that human sbiuation is always -- just like in the arts people argue that human-made goods or human-made art, there's

going to be some premium on that >> no, i think we've realized that the machines work for us. and across the bank, we are constantly innovating, not just the most liquid asset classes. i think this is a really interesting fad. and fixed income, about 90% of electronic inquiry is serviced by algos that's a huge change in the last decade we realize that we want to harness the things that humans are good at. we are using them always to manage the risk. these are not black box algos that are going off and trading without humans understanding the dials. >> are there interesting examples of overruling it, where someone says nope, we don't. >> this is where the human interactions and controls come into play. we have areas where we will suggest a price or suggest this is what is happening, but ultimately and it can override

it helps us learn and becomes this virtuous cycle where we feed information back into our algorithms >> ultimately, do you see these technological advancements enabling the institution to cut costs and eliminate jobs >> no, it's leading to scale b what we really want to see are the businesses i just mentioned, in the last decade, the number of bonds outstanding in the corporate bond universe has doubled. the assets under management for our clients has continued to grow the average ticket sizes are getting smaller and smaller. we're servicing a ton more volume the machines are there to harness and help us. this is not about, you know, cutting jobs, it's about scale >> of all the product categories where you're applying this, is there one that's obviously the tip of the spear >> sure. i think that it's really been an innovation journey, and aside from the liquid asset classes, like u.s. treasuries, i've seen a lot of progress in u.s. corporate bonds. another area that we've really been focusing on that i think has been a massive change from

where we were is the loan market we now trade bonds electronically in the loan market every day if you think about the journey that that market has come in the last decade around standardizing information and data, i think that's one where we're just at the tip of the spear and we'll continue to. >> do you think '08 would have happened had we had this technology then? >> hard to know, right >> it is really hard to know it is really hard tonig know, bt it's helping us guide small business decisions and earn the business every day from our clients by making sound, steady, prudent risk decisions >> pretty fascinating, and obviously, it gets smarter every day. we'll be talking about this for a long time. good to have you in. and thank you for having me. good to be here. meanwhile, upbeat guidance

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. keep your united states on solar edge q3 guidance did come up short thanks to distributoring pulling back on some orders. the cfo telling our pippa stevens, the u.s. market is not growing this year. and there's the solar etf, ticker tan on pace for the worst day since april. that entire sector is under some pressure today >> and another mover, pinterest shares are down about 3% this morning, despite reporting a beat on the top and bottom line after the bell yesterday results showed pinterest costs grew 11% in the quarter. that's more than the 6% growth in revenue that seems to be weighing on the stock. now ceo bill ready did say they're seeing growing users and engagement, that the company's partnership with amazon is off to a strong start, and that ai is effectively matching consumers with shopable content. rosenblatt is among the goals upgrading the stock to buy and

hiking their target to $35, and applying 20% upside from tuesday's close. it really seems like expectations were particularly high after meta's beat, but ceo bill ready, he did sound cautiously optimistic about the ad market. >> yeah, along with cramer last night, kind of echos in terms of the ad market commentary from match, would you argue, that there's some bottoming process here >> some bottoming. we also have to acknowledge that a year ago, the q2 quarter was a really tough one and i think now, not only were those comps better, but the market does really seem to be getting better >> we'll keep our eye on that. shopify tonight after the bell let's get a news update with the aforementioned pippa stevens hey, pippa >> hey, carl north korea issued its first acknowledgement of the american soldier who crossed into the country willingly last month the country offered a brief response to the united nations' command, but stopped short of offering any information about private travis king's whereabouts or well-being. king broke away from a military

escort at a south korean airport mid-july and joined a tour of the demilitarized zone, where u.s. officials say he sprinted across the border into north korea. a west african bloc is traveling to niger to negotiate with the military officers who seized power of the country in a coup last week the bloc said it could authorize a use of force if thecoup leaders do not reinstate the ousted president by sunday and iran issued a two-day public holiday because of unprecedented temperatures, topping 100 degrees. starting tuesday, all government agencies, banks, and schools shut down in an effort to contend with the scorching temperatures julia, back over to you. >> thanks, pippa ahead, shares of teva on pace for their best day in more than a year, as the company reports a solid beat and raises guidance the ceo joins us with a look at what's ahead for the company in the second half and the drug pipeline a check on the markets obviously, it's a weak one worst day for the s&p since about may. nasdaq since july. we'll be right back. good night!

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we're about two hours into trading. let's go post-post with bob pisani for a look at what's moving >> we're down more than 1% on the s&p. the first down 1% day since may 23rd this shows you how vulnerable the market is to sudden pieces of news, like the fitch downgrade. it's because the prices are really high. you can move down really quickly. here's a good example. the bank stocks just had a great

run in july. u.s. bancorp is up 10% or more and you can see down almost 2% today. no news, particularly, on that, but it's just a valuation question here. it's had a huge run-up off of the bottom, which was back in may. similar situation with some of these other names, like oil, for example. devon had a great month. it was up 13 to 14%. all of these oil names were up oil went from 70 to $82. oil is down rather notably today. all of these names, down almost 7% here. these are what we call high beta names. they tend to react a little bit more when you get news up or down there's two examples banks or energy names that are moving on this fitch news here finally, just on the international front, here's bung bunge, this is one of the biggest commodity trading company in the world, they tripled their profit raised their earnings forecast this is a new high, at $114 for the stock.

but they talked about how difficult it is with the situation in ukraine, getting grain out of there and that this is going to drive up prizes. so you're not just having questions with fitch going on here, you also have other exogenous things that are going on, like the ukraine situation that's also moving commodity markets in this particular situation. >> carl, back to you >> let's turn this morning to one of the biggest earnings movers of the day, and that's teva, surging this morning after posting a beat on the top and bottom lines in q2, raising revenue guides for the fiscal year, driven by growth in the company's generic drug business and the recent launch of the new schizophrenia treatment. joining us is teva's ceo, richard frances. great to have you. we're in a pretty interesting period where a lot of companies have product pipelines with something, at least, to brag about. and i'm curious to know what that is in the case of teva. >> thank you very much for having me on

so what i like to brag about today is maybe asteado so astead o is our treatment for huntington's disease and we posted in q2 a 51% increase in revenue in to $38 million. we're very pleased about that. we did a strategy day in new york in may and said that was going to reach $2.5 billion in 2027 and i think people have started to realize that could be possible that's one of our growth drivers. the other is what you just mentioned. we launched a treatment firm for schizophrenia back in may. it's still very early. but we're getting really good feedback from our physicians and our patients because of the patient-friendly profile and the ability for them to administer that and get to a therapeutic dose very quickly, which as you can understand for our patients suffering from schizophrenia, is really important so all in all, good to see researches, growth drivers that seem to be kicking in.

so a positive trend for us >> richard, you have these two businesses the brand business and generic business we're hearing some speculation from analysts that you might unlock value by splitting off these two businesses how do you see that potential? >> thank you very much nice to speak to you yes, no, right now, we don't see the value in that. right now, we have a lot of synergies within our business. and actually, from r&d to manufacturing to our commercial footprint, we see great leverage we can put with our branded products and generic products through thesame infrastructure so right now, we're benefiting from that. and our genomic business which is significant, over $8 billion a year, a lot of cash which we're investing to invest in this innovative portfolio. right now, it's a great pairing. >> how comfortable are you right now with policy and regulation and how would you stack the u.s. right now versus other developed economies in terms of their willing tonnes play along with

research and let some of these things come to market? >> it's a big topic and obviously, i think what we've seen is an explosion in innovation right now in the biopharma sector and i think that's really encouraging for patients and for physicians i don't think we want to dampen that down. i do think it's important we understand what's key to driving forward is innovation. and as we've shown, just to give you an example, with that drug that's driving our revenue, there was no treatment available for people to start suffering from huntington's disease. these are two very debilitating diseases and because we can invest in the r&d, we managed to bring this product to the market. and we want to keep encouraging that as much as health has improved, there's a lot more we can do and i think people should fox on that and allow innovation to thrive >> one discussion we keep having with various pharma companies is whether or not there's a real race for talent, human talent in

driving some of these clinical trials or whether ai and machine learning will be driving innovation in the next five to ten years. is that an industry debate or are we still too early to tell how much of that can be done by com computers? >> look, i think i've always said, consistently, talent, first and foremost, companies are made by people people make products, they research products, they sell products, they give customer service. and when you have quality dedicated people, it makes a huge difference. can they be supplemented by ai can they be made to be more efficient, given more time to do what only a human can do in that interaction? that's where we've got to think about that issupplementation, bt this major shift where people are replaced by ai, i don't see that happening anytime soon. i think the supplementary part of it starting to support the people we have but it is evolving all the time.

what i talk to you about this quarter, maybe we have the conversation, we have the next explosion in ai. so i think it's something you have to watch, but for us, we think of it in a very pragmatic way. what can help us in our business now and how can we interrogate that in to support our people. >> a final question about increasing your guidance for revenue, the midpoint of your guidance there and reaffirming some of those other guidance terms, especially for these brand drugs. do you see them as gaining market share or is it more about meeting unmet needs and identifying a new market where do you see that growth really coming from >> great question. and really important for our products so i think for the one that's going to 51%, what it's about is actually treating untreated patients there are nearly 800,000 patients in the united states that suffer from this condition and only 50 thourk on treatment. for us, that's about helping these patients get access to this therapy, helping the physicians diagnose this particular condition so it's not about market share

now for schizophrenia, that is more about market share. we have a long-act market, but for that, we want to get new patients and patients on current therapy to switch to us, because we think it's going to be something that they're going to be able to comply with better over time. it really depends. on our two major ones, that's how i would divide it out. >> stock's definitely on the move today richard, appreciate the time always good to see you >> thanks very much. appreciate the time as well. >> from teva ahead, match group well off the highs of the morning president and ceo gary swindler is with us next. and taking a look at amd, near session lows. already trading near 75% of its average 30-day volume. q2 revenue did fall 18 year on year, street is focused of course on their ai-specific chips and software lisa sue joined us earlier this morning. >> we're very excited about ai you know, everyone's talking

about ai, but you need all of the computing infrastructure to be there and, you know, we're all about, you know, multi-year, multi-generational road maps and setting up not just the hardware and the software, but also the supply chain for that. so, yeah, we're excited about what we have in front of us in the second half of the year.

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driving a 4% decrease in tinder subscribers year on year joining us now in a cnbc exclusive, match group president and cfo, gary swindler gary, talk to us about these numbers. the fact that you see this decline in tinder users, that really raises some concerns about whether we've hit saturation in the u.s. market and how much the price increases are having a negative impact there. what are you seeing? >> we definitely haven't hit saturation in the u.s. market or any market there's still so many people out there who are single or who are using dating apps. we think everybody who is single should be using data apps. we want to see that penetration keep increasing. we've got lots of room to do that in developed markets like the u.s. or europe and less developed markets like asia. and we've got to keep driving our misconducts to make that happen and we have the runway to do it, no question about it. >> talk to us a little bit about your outlook now, both for that

topline revenue growth and also for usage trends going forward >> look, we've made a tremendous amount of progress i think q2 was a great one for us we had ham some tougher quarters the last few we've been executing so much better the team at our flagship app tinder is really executing well. we were able to raise revenue expectations for q3 and the rest of the year. it was a really strong quarter we feel great about it and we have to keep going >> you've raised your margin expectations, now looking for margin expansion this year what is going to be driving that is that about the price increases or does that impact your longer-term outlook on margin potential >> i think we have room to expand margins over time so we're a very profitable business that's growing very

nicely as well now, which is a great combination, a rare combination in the tech space of profitability and growth and what we've done is made some smart decisions. we have reduced costs across the board, made a little bit more financially disciplined. and you're seeing the real benefits of that start to take hold plus the revenue growth at a high-margin business like tinder is really helping overall company margins. the combination of revenue growth and being smart on cost is really driving a springboard effect, which we're starting to see in the numbers as well, able to raise margin expectations for the full-year and it gives me optimism longer term, as well. >> gary, you know, the street's obsessed with the idea that a pressured consumer is going to start to cut back on something, whether that's high-end dining or the movies or travel. and i guess i'm wondering where you would put online datai dati that stack what's the elasticity on that kind of thing? >> i have seen an incredible amount of resilience in our business throughout this economic cycle we really haven't seen

significant impact on our business it's a small purchase. it's a purchase that makes people very happy. you know, for $15, $20 a month, they can meet people and get out and date and i think people are going to continue to pay for it we don't see people cutting back on the dating apps at all. >> certainly, ai is a theme we've been talking about across this earnings season tell us a little bit about how you're deploying ai, what it's going to mean for the effectiveness of your products and also your promfitability >> we've got a bunch of teams working on ai. a lot of capability in this area we've been doing things with ai since 2019 this is not new for us and we're leveraging our teams around the world to bring some really cool new features every time i see one of them, ai i'm more excited about how interesting and fun they can be. features that tell you, which photos to use for your profile, so you don't have to think about it we know which ones work best explanations of why we've matched you with certain people,

so you understand the rationale for the match. and a lot of other things across the dating journey to make it more fun, easier, less friction, and something people will enjoy doing. so we're just getting started in ai, like a lot of companies are, and i think there's kind of like the sky's the limit, for what you can do with ai >> certainly early days for ai deployment thank you so much for joining us match group share is now up about half of a percent. >> thank you >> soft bank's chip unit arm looking to go public, as you know, in what could be the third biggest ipo of all time, according to some new reports. we'll get the details d ybanmae a timeline next on tech check. with gold bond... you can age on your own terms. retinol overnight means... the smoothing benefits of retinol. are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin.

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arm, the soft bank chip company targeting $60 billion to $70 billion september ipo. deirdre bosa is checking into that carl, a lot with happen between now and september. all indications so far is softbank have timed this ipo pretty well. our audience might remember that in february of this year the ceo told us he was committed to lifting the company this year. at the time that seemed risky because we had a chips glut. showed no signs of reopening tech had not yet rebounded from the ugly 2022. excitement around generative ai was just getting under way fast forward six months, the conditions are a lot better. the need for computing power, more chips, that is booming amid

the rush to capitalize nvidia now a trillion dollar plus company that said, arm is not nvidia it is making moves into ai chip design and it works as a mega cap to help them design their own silicone it phases competition from a company. we don't talk about it a lot but it's out there and is gaining momentum it provides an alternative to arm's close source model the company is targeting between $60 billion and $70 billion or bankers are targeting, meaning arm is trying to ride the i'm cycle if arm can pull this off, and this is a big if a lot can happen between now and

a road show and an ipo, it would be a much needed win for masa son and looking for liquidity to invest this could blow open the window for tech ipos and raise the pressure for others like instacart. we could see others follow >> obviously this would be a massive, massive ipo what are the broader implications for this market that has really been quiet lately >> we've seen some ipos go out and be successful but not in the tech space this would be a huge ipo it would be massive, the third largest tech ipo, reports saying it's trying to raise $10 billion. if it goes well there's no more

excuses. employees are waiting for this company to go public if it is unsuccessful and let's say it's dropped on its first day, tries to go too high a valuation, that has major implications, too. >> it raises the question for those who have laid the groundwork if they want to be early or first or the environment is more secure >> the environment right now is pretty good. we saw the stock's chips etf has done this year we know, of course, what's happened with nvidia it feels like the conditions are perfect. what happens we still have some mega cap earnings to get through. their spending plans will matter a lot. we've been talking about capex it matters for an arm as well. people on this arm ipo are eager to get this out.

they are reportedly targeting maybe the second week in september. it can't come soon enough. if you're going to be first, you want the conditions to be right. looking pretty good for a tech ipo. >> thanks, dee we'll be watching september perhaps a massive ipo. a look to warner bros. discovery as they head back to the negotiating table. meantime, keep your eye on the nasdaq down 2% plus now, session lows, and the worst day in several months. this is cynthia suarez, cfo of go-go foodco., an online food delivery service. business was steady, until... gogo-foodco. go check it out. whaatt?! overnight, users tripled. which meant hiring 20 new employees - and buying 20 new laptops. so she used her american express business card, which gives her more membership rewards points on her business purchases. somebody ordered some laptops? cynthia suarez.

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from wall street to the hollywood walk of fame, the buzz down here is on warner bros discovery with earnings coming before the bell just as the writers guild and studios announce they will resume negotiations to try to end the strike warner bros., of course, with a huge success of "barbie" in the past few weeks one big focus tomorrow is what we hear about the streaming service. they just recently relaunched max. how is that going and what's the streaming outlook. >> is "barbie" going to be a billion dollar movie >> i think it will be.

that won't impact this quarter maybe that will be clouded by the conversation about the strike and that impact >> and i see a report despite "barbie's" success how much that can offset disappointments earlier in the quarter, the movies that did not do as well >> weakness in the ad market >> if the writers get something going with the studios, do the actors necessarily follow? how much of a white space -- >> they don't necessarily follow, but it could prompt the actors to then return to the negotiating table. especially around issues they have in common there is overlap there >> plenty more high-profile earnings this week along with more economic data tomorrow, jobless claims of boe, the jobs numbers friday and apple/amazon

will be the huge events this week >> also, how much of their success is priced in the stock >> we take stock how much is reacting to the fitch downgrade. dom chu is in for the judge. thanks very much, carl and julia. welcome to "the halftime report." i'm dom chu in for scott wapner today. front and center this hour, it's the debt downgrade and what it means for your money our investment committee is standing by to break down the fallout plus some major moves from one specific committee member joining us bryn talkington, joe terranova, jason snipe and steve weiss rounds out the lineup. let's get a check on the markets right now. we are down decidedly. the dow industrials down 250 points the s&p down around 60