month. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc live at the nasdaq an market site in times square i'm andrew ross sorkin hanging out with the one and only kelly evans. >> can we do it? >> joe and becky are off today we have so much to talk about. thank you for waking up early. >> i feel like i can offer a couple of personal anecdotes at 6:00 a.m i have such a bad canker sore on my tongue. i start talking with a couple of be beverages. >> we have great sympathy for canker sores i have had them before

u.s. equities will open higher 183 points higher. nasdaq opening 107 points higher s&p looking to open 25 points higher treasury yields sitting at 4.011. the 2-year treasury at 4.79. >> we were down five of six days in the s&p >> that is the case sdplchlt to see th z -- to see the markets showing the cp oi print. >> you think the mood is a mini bear >> i do totally. people are looking at this and the question is not a break in the trend, but how much of a break? >> let me take cash off the table. i have been waiting so long.

>> i don't mean the rally is over we were talking to different people 10% pullback would be healthy. down 2% or 3% from the highs, yeah i thought it was tom lee who was talking about that 100-point week now more choppy. i wonder if we're in the chop. >> i think we might be. we have the key inflation data due at 8:30 a.m july cpi expected to rise .20% on the month and 3.3% for the headline for the year. we also have my personal favorite with jobless claims. >> why is that your personal favorite >> it is the best indicator. it stopped being reliable in the pandemic and it is reliable again. >> can we get a close-up of the passion that kelly has for the

cpi. >> the jobless claims. they started worsening it looked like we're tipping then it stopped. it got better. now they're back to the 220s i feel they are holding their finger in the daman and it woul break. i look forward to getting that. shares of novo nordisk are sliding after the huge run this week they make the drug wegovy. they reported a 30% increase of sales for the first half of the year with wegovy sales jumping to $1.5 billion. they raised outlook for 2023 it sounds great. the stock is up after the late-stage trial data for wegovy, but it did not just help for weight loss, but reduced

heart attack and stroke. we will have more later this hour. let's talk disney. bob iger reported an operating profit revenue grew to $22.2 billion. raising prices on streaming platforms and cracking down on password sharing bob iger commented on streaming ad strength on the earnings call yesterday. >> the ad marketplace is picking up it is healthier than linear television we believe in the streaming platforms on disney plus and hulu we are trying to migrate more subs to the advertising tier. >> joining us right now is ben smith.

semafor co-founder he still wish he sold buzzfeed to disney. he writes about that in his book ben, good to see you how are you? >> good. thanks for having me on. >> let's talk about the earnings i think there are a lot of questions and there have been a lot of questions since bob iger sat down with david faber about a month ago on our air talking about the issues of the future of linear and future of espn and all of it. do you think what you heard yesterday gives you more confidence what is your take on what you heard? >> i think what we have seen as disney grappling with the reality of the difficult and complicated business the previous bob iger was telling a story of the skip from one business model to streaming and streaming would be better. now, what you are seeing is

streaming is a tough business that has a lot of downside the declining business that they are now obviously talking about getting out of it linear television is something they do in a difficult situation he said consumers will pick up the tab from one to the other. essentially they doubled the price of disney plus >> they are doubling the price clearly trying to sell you a bundle if they can lock you into ulu, the other piece is pay up at some point in 2024 to comcast, parent company of this network that is a lot of change for them i would ask this question ahead of that because that will cost them do you see them doing linear deal selling off assets prior to that >> i don't know about the timing

and probably depends on the market and what private equity buyers or others are willing to pay. certainly, every time he opens his mouth, particularly on cnbc, he seems to signal they are looking to get out of linear television >> you mentioned private equity. who will buy these assets? assets that are not growing assets o s assets they may throw off lots of cash. there becomes a separate question and if you are just selling the channels, which you sell with a four-year extremely se -- year license deal. >> as everybody is trying to get out of cable and linear

businesses, a lot of companies are chasing scale. i think there are attentions in both directions. the complicated space is espn. it did not sound like iger wanted to sell talked about getting investment from the sports leagues and gambling business. it doesn't look like they are eager to sell espn which is a strong brand with a non-cable future maybe not as lucrative that's the most attractive of the television assets. >> the non-lucrative future. that almost should be the headline for a lot of the media business is that the headline a non or less lucrative future is it netflix and that is a lucrative business if you jump the shark and get there?

>> there is huge demand for what these folks are doing. the cable because was a uniquely easy business for so many years. i think somebody else worried about the consumers and wrote you a check. your job was to negotiate on the size of the check every few years. that is over i think for good reason, everyone in the media business is nervous about what comes next and it is uncharted how much services people will pay for and how much they pay for them directly >> that's my final question. i always thought about this from the get-go netflix or netflix and hulu or one or two subscriptions what do you think the average american family will hold on to long term? an existential question for all of us. >> you know, i have seen suggestions it is one or two

the services would likely be more, but the more the prices go up is a concern. are people attached to the services or subscribing for a hit show and unsubscribing when it is over to what degree are these companies going to market the relationship with nbc universal and disney against the relationship with starz and show >> ben, i think you are right except one piece of it you are a parent and i'm a parent when you have kids, these services, dare i say, i not say this about anybody here, you put your child in front of the tv for survival lots of ways to describe it. for disney, for example, for the content for kids and netflix

with kids programming, talk about preventing churn despite the hit-driven business, there is an underlining business which is exclusively kids. i don't know what to think about that. >> i think youtube is a serious competitor there and that is free disney is $7 a month tax you pay so you can watch "the lion king" once a month at $14, some people turn that off. >> we did. >> you did >> we do youtube all the time. we do youtube premium. it is one way or the other. >> coming or going ben, great to see you. thank you for wake witing up ea >> thank you coming up, shares of wynn resorts and reaction to the selloff of roblox. we will tell you about a deal in the fashion world and the biden administration cracking down on investment in china w we will tell you about the

fallout for the equity fmsir here at home you are watching "squawk box" here on cnbc >> announcer: this cnbc program is sponsored by ibm. ibm. let's create listening. with ibm, you can use software to help you connect and analyze data— from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something better for everyone. that's the sustainability solution ibm and a global real estate company created. what will you create? ibm. let's create. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey!

rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. ( ♪♪ ) ( sfx: people cheering ) ( sfx: stock exchange bell ringing ) ( ♪♪ ) ( ♪♪ ) ( sfx: people celebrating ) ( ♪♪ ) ( sfx: people celebrating )

( sfx: stock exchange bell ringing ) nice footwork. man, you're lucky, ( sfwatching live sportsg ) never used to be this easy. now you can stream all your games like it's nothing. yes! that's what i'm talking about. [ cheers ]

running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. wynn resorts shares are higher 91 vencents adjustments.

revenue rose to $1.6 billion year on year out of the pandemic it was higher than expected. wynn said strength in vegas and m macao drove dining building on the 25% year to date gain. take a look at roblox. i love playing games stock plunging 22% in yesterday's session. it is a $29.99 share missing on the top and bottom line. the expenses increased from a year ago corporate overhead and developer fees and infrastructure costs. the company expects to continue to report losses for the foreseeable future that sent the stock down we will talk about this and if you have questions, send them. david baszucki will be on the broadcast at 8:15 eastern time i will tell you that my kids do

love david baszucki. when we have him on the show -- this is the one we listened to as to how he built this. david has a character name not a burner account, but they know who he is everybody is david crazy we will talk to david at 8:15 about what is going on >> i'm not in this era roblox is a mysterious -- >> it's coming it is a metaverse. something collaborative. >> i guess we have to ask him about. this i'm curious is engagement down post-pandemic? this is not a business issue >> i think engagement is increasing, but not parabolic over the pandemic. now how do you monetize the users? they bring other brands on to the service.

people with concerts and buy shoes. robucks is a currency in my house. >> i heard that. we eye roll at meta and facebook you are describing the vision of the space is going to be and they are already there >> that is true. >> the ipo down 33%. tapestry, the parent company of coach and kate spade, is prepared to buy capri holdings the deal could be official as soon as today and value capri at $9 billion tapestry is up andrew, i want to show the chart. go back to 2010 on the stocks. both peaked about a decade ago in 2012 or 2014. >> i don't see people walking around with coach bags. >> i have a michael kors bag

i'm off trend. of course. although the one bag i by uy, is not cool lvmh brand and that company has done so well this kind of -- i don't know what category -- one step below the neconomics are not as good. >> because the economics are not as good because the other guys. >> hermes stopped raising prices on the bags. >> it makes no sense. shares of blackrock are higher take a look. they are at $715 a share the cfo said on the earnings call that the sources at blackrock expect a spot bitcoin etf to be approved in a matter of months. he talked about the book a little bit separately, the s.e.c. is

appealing the ruling that says the regulator doesn't have the authority to oversee sales of ripple's currency of xrp that has an impact on whether you see a spotty etf and if they get regulated. a court decision was a boost for crypto firms with oversight. at the time, shares of coinbase and marathon digital were surging. now crypto prices across the board with bitcoin has not moved. we have been sitting on $29,000 range for some time. $29,491 for those folks on the radio. >> resilient to me coinbase, i did not realize they were up that much. stock at $85 right now that is a move >> that is a move. >> for a company with a wells notice. >> interesting coinbase moved, but bitcoin has not.

resilient. bitcoin went on a run before the market went on a run and basically held steady. check out shares of alibaba. adjust d eaed earnings above estimates. alibaba bought back $3.1 billion in the deposit shares during the quarter. stock up 2.5% this morning. coming up, chinese officials are criticizing the biden administration executive order restricting investment in chinese firms. michelle caruso-cabrera which will join us and coming up, don't miss linda yaccarino's interview. we look forward to hearing her thoughts about how t binheusess is going we'll be right back after this one prawn. very good. did i say chicken wrong? tired of people not listening to what you want? it's truffle season! ah that's okay... never enough truffles. how much are they? it's a lot. oh okay - i'm good, that -

it's like a priceless piece of art. enjoy. or when they sell you what they want? yeah. the more we understand you, the better we can help you. that's what u.s. bank is for. huge relief. yeah... ♪

power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com

the biden administration issued an executive order aiming to curb high-tech investment on quantum computing and a.i. investment let's bring in michelle a caruso-ccar >> you bring up a good point, kelly, when it comes to the vcs and private equities this executive order and treasury interpreted the

executive order is private equity and venture capital firms. a lot of them have been pulling out out of kriof china because are been doing with espionage laws to make it difficult if you have a chinese subsidiary, that subsidiary cannot send information back to the u.s. company that owns it there is less investment i think that is why the executive order is much more narrow than when it was originally conceived two years ago. when people started talking about prohibiting u.s. investment into china two years ago, to use the current metaphor, people wanted to go lena kahn on it. the stocks and bonds, et cetera. what has happened is narrow.

prohibition with advanced semiconductors and quantum computing. it doesn't prohibit u.s. investment in a.i., but the require it requires the interpretation, you get a notification to treasury if you are going to do u.s. investment in artificial intelligence or into less advanced semiconductors that is different. we were talking about whether or not bio-tech would be included and pharmaceuticals included or companies with large amounts of u.s. citizens data included. now it is prohibition on two sectors and notifications on the third sector. >> that is a great point what does that tell us if this is more, you know, sound than fury i don't know the right analogy are we going further to curb the economic technology and decoupling the countries or is this almost a political gesture of some kind

>> look, the idea for this very much came out of the national security establishment, right? they talk about small garden, high wall. we are focused on technologies we know can aid the development of the chinese military and we don't want u.s. investment to do that because if we ever have to go to war with china, we don't want to help them along the way. we absolutely know we have a relationship, in many ways, is connected economically the intention here is to keep capital flows moving in areas that are not a threat to the u.s. national security >> sure. i always think of the big high profile names like starbucks with high profile exposure and people poking around should we expect retaliation i don't know if the chinese would be persuaded and it could be worse or the u.s. keeps

coming after us. >> we heard from the senior leader of retaliation. let's see what it is the one advantage where they have is production capacity when it comes to anything related to climate technology that is one area they could retaliate. they could retaliate against specific american companies. the risk is for china is a weak economy right now and how much do they want to do that actually ends up hurting themselves more than it hurts us look at deflation. defligation in this day and ages incredible and they have it in china. they have the export data that came out was devastating they he face a lot of tough choe if they make those choices. >> absolutely. even steven roach and everybody agrees if we are going this

route, we are both going to -- it will hurt growth and the margin these are important initiatives for the u.s. >> when you look at all of the documentation that was put out by treasury yesterday, there is a 45-day comment period. when you read through the questions they would like to ask, they understand very much that there are tradeoffs if we do this. yes, national security is important, but there will be other costs that go along with that let's review that. one question is should it be all private equity firms or of a certain scissize or investment a specific size? they are specific of the questions to come back to handle those ktradeoffs. >> it is fascinating it shows how unsettled

michelle, the granhularity that no one else has. we will have the inflation data coming up in a few hours. we will tell you about the july cpi. kelly is excited about the number. as we head to break, a look at the s&p 500 winnersnd a losers from yesterday.

♪ (upbeat music) ♪ ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) -awww. -awww. -awww. -nope. ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall.

good morning welcome back to "squawk box" live from the nasdaq market site in times square. 157 points higher for the diow jones industrial average nasdaq up 90 points. the s&p up 20 points >> we are counting down to the july cpi report at 8:30 a.m. jobless claims, too, let's not forget the inflation measure could influence the fed next month joining us is sri. >> i have been here for a while. i have gotten over the jet lag it is a lot better, kelly, at

6:30 a.m. rather than 3:30 a.m. >> i want to get a big pair of bose headphones. it makes people feel more familiar >> it is good to have you here and bny mellon's jake jolly. such a great name. a rock star. also here on set with us cpi is ballyhooed. jake, what are we pryinicing in no more hikes? what will move the needle? >> the set up coming into this one hasn't been too strong we had one up day so far in august from that perspective, you know, we haven't set expectations too high at the same time, when i look at the report and look at the

consensus, we're expecting .2% month on month gains on the headline and core. that's a good report that's what we got in june's report >> both the headline and core? >> .2%. >> for the year on year rate 3.3 for the headline >> the headline number is not what the market is focusing on core will continue to make downward progress. it is still high, but below 5% when i look at what we had in june versus what we have now, now expectations are baked in it will be pretty good. that hurdle rate is higher that is not to say we're setting ourselves up for disappointment, but it says the market is baking in a pretty rosy -- i won't call immaculate disflinflation.

it will continue to make progress that is why fed futures are pricing in with a high probability of a pause you have fed officials wit comments saying that >> sri, you think getting back the head of stifel who said getting back below 3% is going to be really hard. do you think that is the goal? >> it is supposed to be the goal the fed did not tell you that was the goal, then the market would rally. that is not good for the fed or inflation. kelly, they have to pretend that 2% is the goal although they will not reach it. that having been said -- >> do you think the market knows the game is being played >> i think the market is looking for a change in the fed policy i have been calling for a while saying the fed interest rate increase is going to pause in september. that is the likely result. i don't expect a surprise from

what happens today of the i'm a bit more piessimistic than jake >> would that make it a 5 handle year on year >> it would keep it 4.3 or 4.9 you can still have the same number year on year without it pushing to the 5% level. the big issue is the headline in future months. remember june of 2022 which was the peak of inflation. july of 20202, you improved. the comparison will get a lot tougher. if the market rallies today thinking the inflation number is good, they have a shot coming in the following two months. >> it doesn't help oil prices are at year-to-date highs. it feeds to consumer inflation it punches above its weight. it is significant. the labor market hasn't weakened

as expected and all of this could keep pressure on into early anything year. >> -- early next year. >> exactly we have saudi arabia and russia agreeing to keep the lower production level into september and saudi arabia has the possibility to cut more if the prices were dropping i think the risk of oil prices is increasing in the short term. headline inflation which includes food and energy, the risks further increase >> yeah. >> i don't know. i'm sad is what i am sri has been right about all this so far. this is complicated. >> jake, i take your point that the market is acting frustrated. where do you think we go from here in terms of what would change this new trend of it is getting harder to keep the gains

going? >> i have been describing this ises -- this as an unloved rally. the earnings picture hasn't been bad. it is better than expected it hasn't been contributing to the rally. i would describe earnings as they were traeading water >> we have interest rates t it is an odd environment >> look at last year and what it was predicated on. we have the aggressive hiking cycle to cause recession here we are. t unemployment below 4%. people are still spending and going on vacation. there are pockets of weakness, but overall, earnings have met the depressed expectations >> if you just said the s&p price is 4,000 and interest rates are zero and interest rates go to 5%, should there be

re-rating based on that analone? >> definitely. we are off from the start of 2022 we are still down. we are haven't round tripped the entire way it is very reasonable for people to unlove this rally given it has occurred in an environment of interest rates going above 5% that should make people uncomfortable. when you look at history and see what happens generally at the end of tightening cycles, i think we are fortunate we haven't seen it. the soft landing is still on the table. i would say it is not odds on yet. >> what is your expectation? what is the forecast at this point? >> well, you know, we focus on probability. we cthink the probability is getting a soft landing it will come down to the fed reaction function. we know we are close to the terminal rate if not at the

terminal rate. they want to hold rates at a high level for a long time what will they do if it accelerates in the second half of the year? at the same time, what do they do with unemployment rate starts to go up and inflation is sitting in the 3 or 4 handle >> quickly, in terms of why there is still a multiple expansion, kelly, look at people like john williams talking about interest rates approaching a peak what the market is saying is not looking at what has happened, but likely to happen he talks about interest rate cuts in early 2024 i think that statement and differing from the colleagues is pushing the market higher. >> great point thank you, both so much. sri and jake. >> good to see you. coming up, average rent prices in manhattan hitting record high in july despite the drop in population during the

pan pandemic this is the story that was too high it was james hold on. i had it before. do you remember this jimmy. jimmy mcmillan the rent is still too damn high. we talk to mitch green for his take on u.s. investment in china and ipo market and so much more. you are watching "squawk box" and this is cnbc >> announcer: currency check is sponsored by interactive brokers. the best informed brokers choose interactive brokers.

(fan #1) there ya go! that's what i'm talkin' about! (josh allen) is this your plan to watch the game today? (hero fan) uh, yea. i have to watch my neighbors' nfl sunday ticket. (josh allen) it's not your best plan. but you know what is? myplan from verizon. switch now and they'll give you nfl sunday ticket from youtubetv, on them. (hero fan) this plan is amazing! (josh allen) another amazing plan, backing away from here very slowly.

(fan #1) that was josh allen. (fan #2) mmhm. (vo) for a limited time get nfl sunday ticket from youtubetv on us. a $449 value. plus, get a free samsung galaxy s23. only on verizon.

welcome back to "squawk box. rents in manhattan have reached an all-time high robert frank is here with more >> andrew, the average price is $5,588 a month which is a new record median prices hit a record with prices per square foot look at every measure and it hit a record much of the u.s. is seeing rents flatten or decline manhattan has seen records in four of the past five months

average rents are now 33% higher than they were pre-pandemic. this is despite the new york population is smaller and offices are still half empty due to remote work the big reason for the high prices is inventory which is low. new construction is condos right now in new york and many would-be buyers are camping out in the rental market there are hopeful signs here inventory up 11% in july that could ease the pricing pressure new leases fell 6% over last year that suggests the renters may have reached their limit on affordability and looking elsewhere or moving back in with parents. august is the peak rental month with back to school. expect another record month in august, but maybe, maybe flattening out or decline in the fall guys >> you think it will flatten

out? what would lead to the decline if all of the trends exist i don't understand >> we are seeing the uptick in inventory. when you get 11% up in inventory in july and if you continue to see that in august, you could see loosening up and people will have choice and they will not pay $6,000 for a two bedrbedroo. august is the peak we will likely see another record and decline in the fall people have been expecting a decline for six months and it hasn't happened. >> robert, quickly, for those not wall street folks living in manhattan, does this reflect on the rest of the country? i know real estate all things are local. we saw rents go too damn high in arizona and all sorts of places. what is happening around the

country? >> around the country, rents is a mixed bag. half of the big cities have seen increases over the past year half declines. some of them in the middle broadly speaking, we're seeing downward pressure or flattening nationally which is why new york, the largest rental market, and remember rents are a big component of cpi it is interesting to see how the housing component shows up today. if we continue to see the upward pressure in new york city, the largest market and big part of cpi, that could continue to be a problem for the fed. >> all right robert frank, thank you, sir >> a peak in rents with the cpi data. shares of novo pulling back this morning after the run-up this year. we will dig through the quarterly results with the analyst next novo down a little less than 2%. stay with us

the first time your sales reached 100k with godaddy was also the first time your profits left you speechless. at the counter or on the go, save 20% with the lowest transaction fees and keep more of what you make. start saving today at godaddy.com

welcome back to "squawk box. some news just breaking that tapestry, the parent company of coach and kate spade, is buying capri holding which holds michael coors, jimmy choo and versace. the company up 57% on the confirmed deal $54.50 is the share price. a little bit below the $57 per share that capri shareholders will be receiving under the terms of this deal tapestry is now down 5% premarket. total enterprise value of the deal about $8.5 billion. as noted before, shares of both of these companies have been struggling since making their highs over a decade ago. meantime, novo nordisk hiking its outlook for 2023, 30% increase insales for first hal of the year. not just from the upper east

side and beverly hills, powered by strong demand for the weight loss drug sales and blockbuster wee wegovy treatment joining us right now for more is gerald holt, the healthcare strategist good morning to you. it has been quite a wild ride, parabolic for a moment there, $184, what is the fair value for this company >> andrew, hey, good morning thanks for having me i think we're kind of right around where we need to be over the short-term analysts have really jacked up their estimates so much over the past couple of quarters for this single product and we obviously have seen what happened with eli lilly. i think in terms of valuation, you know, novo is trading at a 3 to 4 times premium to the remainder of large cap pharma, which admittedly has a lot of issues but i think for the time being the price that we're seeing now

down a couple percent in premarket probably makes sense i don't think there is that much upside near term unless we get to a point where the street feels like estimates have to go a lot higher just doesn't seem like that's going to be the case over the next couple of months, at least. >> i joke about the upper east side and beverly hills how widespread does this drug need to be for these numbers in terms of valuation to make sense? >> yeah, for sure. i joked about it for a while as being, you know, basically a drug that is being used for vanity reasons for the most part, at least so far. it really has to be very broad-based. it has got to be a drug where, you know, anyone with bmi over 25%, 30%, is going to use this drug not only for weight loss, but based on the studies that read out earlier this week that we talked about on tuesday that they're using it for other health benefits, cardiovascular benefits that are really going to help their underlying health

over the long-term it has -- it can't just be, you know, beverly hills, new york, vegas, dallas. it has got to be everybody >> and do you think -- do you see that happening the other thing is there have been no meaningful side effects. it has become the true wonder drug in a great way i'm skeptical on it because thus far we haven't found a drug like this >> yeah, i mean, i'm a little bit skeptical too. just because the estimates that the street has thrown out there for 50 billion to $100 billion worth of revenue over the next, call it, six to seven years, getting into 2030, you know, just seems very aspirational this is not to say there are going to be major side effects we have seen nausea, vomiting, other gastrointestinal issues associated with the drug that don't seem all that serious, given what the drug can do but, yeah, i mean, the

perception on the street whether it is real or not is that these are wonder drugs and the valuations have certainly reflected that novo moving up $50 billion the other day on this data and lilly moving up $70 billion. for sure, that's the case. >> jared, thank you. appreciate we're going to talk about this drug a lot more. cardiovascular benefits seem terrific hard to understand given it makes it harder to build muscle and as you get older, you would think that would be a thing too. >> that's a great point. coming up, we're counting down the key inflation data due at 8:30 eastern time steve liesman, the professor, will join us with a preview straight aadhe "squawk box" rolls on. two big hours coming up.

wake up, achievers.

you're making the most of every hour of your life. except the hours that you're sleeping. so why do we leave so much untapped potential on the table? this is a next level bed, for a next level you. my circadian rhythm is kicking your circadian rhythms butt! it's not a competition. i know, but i'm still winning! so, it is a competition. save 50% on the sleep number limited edition smart bed. plus, 36-month financing on select smart beds. shop now only at sleep number. wealth-changing question -- are you keeping as much of your investment gains as possible? high taxes can erode returns quickly, so you need a tax-optimized portfolio. at creative planning, our money managers and specialists work together to make sure your portfolio and wealth are managed in a tax-efficient manner.

it's what you keep that really matters. why not give your wealth a second look? book your free meeting today at creativeplanning.com. creative planning -- a richer way to wealth. good morning futures climbing ahead of key inflation data we're going to show you what is moving in the premarket. and beijing blasting president biden's order limiting u.s. overseas tech investments. tech investor mitchell green will join us with his reaction and a breakdown of disney's mixed results.

it is all straight ahead as the second hour of "squawk box" begins right now good morning and welcome back to "squawk box" here on cnbc we're live at the nasdaq market site in times square i'm andrew ross sorkin with kelly evans hanging out for the three hours. all three hours. >> and then you're going to come on from 1:00 to 3:00, right? >> i'm looking forward to that joe and becky are off today. u.s. equity futures at this hour, we got a lot going on and all of this may very well change at 8:30 when we get important data, we'll tell you about that in a moment. the dow would open up 173 points right about now. >> and a deal happening this morning, tapestry acquiring capri holdings for $57 per share in cash. the total enterprise value about $8.5 billion tapestry's board approving a 17% increase in the quarterly dividend per share

all of that by the way sending tapestry down 4% they're the parent company of coach and kate spade, while capri is the parent company of michael coors, jimmy choo and versace and those shares are up 58% today. and the inflation data andrew mentioned is out at 8:30 this morning along -- let's not forget jobless claims, steve cpi gets all the attention >> favorite number she has a passion for those jobless claims. >> she's smart >> no, they just -- >> you know what they call jobless claims number, the desert island indicator. >> and they -- >> if you have one piece of data, an economist on a desert island, not to ask the question why you would need data on a desert island, you would need water and food, but if you need data, jobless claims is the one. should i talk about cpi now? >> if you would like >> did i get the introduction? >> he didn't get the full -- >> they're fuming in the back. get on with it

get on with it. >> we need to make sure it says steve liesman. >> i don't know that people know me by my bald head investors hoping for a three-peat, a second cpi report that begins with a number three and is actually hopefully in the lower 3s we're looking for 02 on the month over month the same as last month, 0.2. 3.3 was the headline number. it was 3 last month it stepped down from 4.1. the core 0.2 versus 0.2, that stays unchanged at 4.8 after peaking near 9%, had has come down smartly while core which topped out at 6.6 has been more stubborn in part because housing prices have not come down investors will focus on the key dix watched by fed chair jay powell he sees it as driven by wages and it is the reason why the fed thinks the job market needs to loosen up in order to bring down inflation. forecasting the price increase to remain moderate in several

areas including housing, diana olick's problem, goods, prices, used cars, that's phil lebeau. if they would get their act together, i could talk about lower inflation. but -- and also robert frank not helping with the rents going up. if frank would get rents together in new york city, we would be okay. there are potential offsets here, high energy prices and so the market looks like it has some tolerance, i want to say, for prices to rise on the headline and unchanged on the core but maybe not much tolerance upside surprise could mean a downside reaction i think from stocks and bonds this morning. the fed may have a bit more patience it sees the decline i want to say as a process that includes some setbacks along the way. but not necessarily a linear process of decline. >> yeah, well said the market is up and rare to see such big moves into the print. who knows. that's the mood we're in this morning. >> the question becomes what happens to that second rate hike and where we're at on that still trading in the 30% probability range. >> for november. >> for november.

with very low probability for september. >> all right, steve, thank you weappreciate it. steve liesman. meantime, let's talk about the impact we're seeing on the consumer credit card spending did bounce back in july new data from bank of america shows an increase of .1% year on year from june's decline the jump due to the fourth of july holiday spending, maybe a little bit amazon effect retail promotions moving mania as well, barbie merchandise. the consumer checkpoint gives us real time estimates of americans' financial behavior because it has data from 68 million small business and consumer accounts. joining us is liz everett, great to see you again. >> great to be here, thanks, kelly. >> what do you think on the consumer yesterday or this week we have gotten reports about how 401(k) hardship withdrawals are up and there is different signs of delinquencies rising in some parts of the credit space. and yet it looks like spending is back hitting a positive inflection point. >> spending is back to positive. you look at our overall data, you're seeing positives in

spending, you're seeing positives in income gains across all income cohorts so wages are coming in higher. and then the other thing you're seeing, i always look at what sort of deposit buffers, you know, checking and savings account, do people still have money and continue to be well in excess of where they were in 2019 >> why -- maybe i'm making too much of this report, why are 401(k) hardship withdrawals at a high when people have historically more savings than they ever had? >> a great question. one of the things we looked at when thinking about the deposit balances is we keep on talking about how this is really in excess of 2019 but we did a couple of scenario aanalysis to say what if spending accelerates, what if, what if, what if in every scenario, lower, middle and higher income households still had more money in their accounts through beyond 2024 than they -- >> wow. >> yeah. and now let's take it one step further, we're talking about inflation this morning, right? what if we inflation adjust in

2019 if we do that, even then, the lower income cohort still doesn't zidip below the inflati adjusted number. >> that's really interesting and i guess the question becomes, okay, so has inflation put consumers on the back foot here or not? and then what is that going to mean for the continued strength of the labor market, the fed rate hikes we were talking about. >> here is how i think about the labor market one thing we're able to look at is inflows into accounts so your after tax wages, salary, bonus, plus any other way you're getting income and in that scenario, we continue to see growth across -- but, interestingly, about 2% to 3% for lower and middle income households hower i higher income households were contracting, but in july, they're back up .4%. that's still slower, but it is still growing. that's one thing we need to think about. >> i don't mean for this to be a political question, but you look

at all the polls around the country and people seem to think the economy is doing terribly. >> yeah. >> and i'm so curious how you square that relative to the numbers that you see in the checking and banking accounts. >> we have -- when we have our editorial board and think about what we're going to investigate and what we're going to look at, we look at the headlines and say, okay, everyone seems to have these dismal things is this true and we go back and we look at the data and we let the data drive the discussion and frankly i have a lot of reasons to be optimistic right now so -- >> so can you explain it then? >> well, some of it is -- could be sentiment, right? if people are thinking, oh, inflation is awful, they don't -- people don't necessarily -- i hate to say this, not that people don't know what they're feeling because they are feeling that things maybe aren't as great, but, you know, if i said to you, gas prices went up, how did you change your spending, would you know i don't know that everyone necessarily knows how they're making their decisions and we're able to see it in real time.

>> we always say that people vote with their pocketbook they vote with their wallet, right? and that their feelings are real >> and they are. and they are but i think what we're seeing is the reality, you're continuing to see income gains, right so you're continuing to see money in your account. the market, still doing pretty good consumers holding up. >> they're holding up. they're not happy about it we saw the consumer sentiment survey bottom in june of '22 when inflation hit its high. consumer sentiment is higher now than it was at peak inflation. i was at the grocery store the other day and a few things reaccelerated back to prices from -- it just doesn't feel good and so you say, well, but, you know, you can afford it, i can afford it, but it makes me feel unsettled and angsty and mad >> i think even if everyone feels great, it -- doesn't feel great, but has the money, they're going to act that way. the spending is continuing we accelerated for the first

time in three months, right? so people are -- they may not be talking about how they're doing it, but they are certainly still spending >> goes so against the narrative that everybody is living some kind of yolo life, putting it all on their credit cards. the credit card piece, but that -- >> here's the thing that is really interesting that happened this month >> yeah. >> we talked for the past year about the shift from goods to services they want to go on trips, they haven't been able to go on trips. this month, goods was positive for the first time in over a year maybe the trough of goods spending is behind us and maybe that transition from goods to services -- >> what the bulls are hoping about the ism manufacturing surveys and industrials and all the rest of it. >> but services is still up. so maybe we're back to the prepandemic normal >> okay. >> liz, thank you very much. got the data she's got the numbers, everybody. we appreciate it this morning. when we come back, beijing blasting president biden's lastest executive order, the one that targets investments in china. we'll talk to mitchell green about that plus, alibaba earnings which are

out a short time ago we'll talk about an investor who looks like he might have made a fortune on that trade. before we head to a break, a check on the markets "squawk box" coming right back

nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! that's what i'm talking about. [ cheers ] running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! that's what i'm talking about. [ cheers ] running up and down that field looks tough.

it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. welcome back to "squawk box. a developing story in beijing. it is responding to president

biden's latest executive order targeting foreign investment in china. we talked about this yesterday, notably in a.i., quantum computing and semiconductors eunice yoon joins us now from beijing. good morning >> reporter: hey, andrew chinese officials have been criticizing the president's investment curbs for certain critical technology, saying that their government is gravely concerned and opposes these measures the foreign ministry said that beijing lodged what they call as solemn representations or complaints to the u.s. the commerce industry said china reserves the right to take countermeasures. the chinese held off on taking countermeasures, suggesting to some that beijing is looking at -- not to disrupt the current detente that they have with the u.s. the biden administration order would restrict u.s. investors like private equity, venture capital, from putting their money into what the biden

administration described as a narrow subset of sensitive technology like quantum computering, semiconductors and certain a.i., which the biden administration is concerned could potentially end up in chinese military systems these measures are set to take effect after a 45-day commentary, public commentary period, which is being highlighted by the state media here it also would apply only to new investments. but even though the biden administration has been describing these measures as narrow, the message is being sent, which is a much bigger signal to the chinese as well as to u.s. investors that u.s. investors should not be putting their money into high tech chinese tech development guys >> eunice, thank you for that report it is fascinating to see this sort of back and forth and we will keep our eyes on it we're going to talk about it a little bit more in a moment. look at shares of alibaba. adjusted earnings coming in above expectations

revenue growing 14% year over year and topping estimates alibaba bought back roughly $3.1 billion in american depository shares during the quarter. look at that stock up, now 99.50. worth noting and credit to kelly evans, dan lobe made a big investment, it appears, from the filings, back in may or the quarter before that filing came out, michael bury of the big short looks like a baba holder we will not know until some of the next filings come out. but a couple of winners potentially in the baba space this morning. >> a quick note on that, because baba had been a -- is much a loved part of faang by a lot of the major hedge funds in recent years and then it ran into more trouble, which makes it an interesting juncture for it. >> totally joining us to talk alibaba earnings is mitchell green, founding partner of lead edge capital, investor, china's tech including alibaba and ant group and other companies like uber

and others good morning to you. >> good morning. thank you for having me on. >> want to talk baba first or what's going on with the politics of china? they all relate in some way. >> either/or. >> let's hit baba first. at 100 bucks right now do you think it is fairly valued what is going on here? >> relative to historical, it is fairly cheap i think the first day of the ipo it was around 90 bucks amazing how big the company has grown over the years where the stock is however, all this stuff got hammered over the last 18 months numbers are pretty good. i think ebitda was up 32%. they're also going to be, i think joe tsai and the management team, coming back as chairman, daniel, the ceo, will step in as -- he's going to run the cloud computing group, which he's been super passionate about. they announced they were splitting up into six different divisions. i think they're trying to unlock value to get the stock higher. they think it is cheap and they bought back $3 billion plus of

stock. >> how much -- now let's overlay the politics to this, because that's a huge piece of this. the biden administration is now telling private equity and venture capital, you can't own technology companies effectively or certain types of technology companies what's to say that in a couple of months, mark your calendar, i don't know when, that somebody calls you up or not even calls you up, you read someone coming across the tape it said, mitchell, you got to get out what do you think? what are the chances are of that happening? >> i don't think it is zero. i think what you're seeing here -- i think you're going to see more rhetoric, the presidential elections in the next 24 months, you're going to see more rhetoric against china, we can't get out of our own way, it appears i think a lot of these -- a lot of investors are nervous about that headline and that's why these are companies that are trading at the multiples where they do. >> i wonder if there has been a sentiment turn in china where derrick pointed out the other day, chinese authorities for the

first time asked companies including tech companies, explain where you think your company has benefited society. and is that just cracking the door open to their understanding that they need to support these companies instead of, you know, fighting them basically? >> i'm not friends with the premier, so i don't really know at the end of the day. everybody is pontificating, but i do agree with you there appears, if you look in from the outside, the chinese government does realize it needs these large tech companies in order to get out of the doldrums it is in and grow however, they can't stop the u.s. government from -- >> do you see anything that would actually change this particular dynamic that seems to be at play now >> i don't think -- i think you're going to hear more rhetoric come out from the election from the u.s. government i think you might see potentially less reaction back from china because they need these big tech companies. but, again, nobody can tell you the answer. >> what is your sense of what aleas at least seems to be a

consistency. you're going to have firms not be able to invest in certain types of businesses and similar kinds of businesses or if the businesses decide to go public or come to the public markets in some other way, that the same investors can get into them. >> that will be interesting. the real question will be when these smaller companies, private equity or venture capitalists could historically invest in china, if they do go public, in hong kong, on the -- on the exchanges, will the u.s. government then tell you can't own the stock? what is to say you can't own the stock in alibaba >> let me ask it this way, is this theater to you or is this real because what i can't figure out is it is not as if we are going to starve these companies of capital and that they don't have access to capital from other places in the world. >> that's 100% correct not like the europeans or other people, people in the middle east aren't going to come in and

fill the void and invest in these great companies. i think it is a lot of political theater, personally, but i think it is coming across both sides of the aisle in the united states here's the reality of it, we need china as much as they need us. >> why is the -- why is the investor community not more vocal on this issue? >> i think the -- i think they are behind the scenes. some of the lobbying organizations in washington are probably pretty vocal on this stuff. it is a tough issue. i think -- that is why these stocks trade where they are. >> but the other piece of this is, you know, i know a lot of venture capitalists and private equity guys and hedge funds and others who say investing in china has always been not only a very risky business, but even when things go well, it is not always clear that you can get out. >> yeah, but people have said that for years i first invested in alibaba i think around $6.75 a share back in 2011. >> so you have the profits to

prove it. >> and i will tell you, back then, people would have the same kind of reaction to china as you're getting now so there has always been -- >> the stock market overall peaked in 2007 it has in general been a terrible investment. you have really selective about -- >> think about it. alibaba went public at $68 a share. it is -- the pop to low 80s, day one. if you were a retail investor, you bought the stock day one of the ipo -- >> you're up $10 over however many years. >> is there a company in china that is available on the markets here in the u.s. that you like >> i think alibaba is an interesting business at these prices here. it is cheap. there are risks you highlighted. i think an incredible company that is obviously in the news around all this regulation, surprised they haven't gone after this is bytedance, a huge investment incredibly -- >> how do you think bytedance

managed to sort of -- bytedance has been in the headlines and yet -- >> people love tiktok. >> yes, but also you argue that's an algorithm, a.i.-driven. >> they were talking about banning tiktok too it is because if -- >> in large part by private equity in the u.s., by the way. >> correct if they were -- if they were to ban tiktok, i think the millennial generation would, like, literally rage -- they would start voting >> they would start voting >> if you want a millennial to vote, do that. i kid you not, i think that would do it. that's one of the reasons. a huge amount of this has become highly politicized and it is going to ramp up more into the election. >> that's interesting. we're always trying to get young people to vote this might be -- this might be the way. mitchell, thank you for coming in this morning. >> thank you for having me on. coming up, we have other stocks to watch ahead of the open few movers to hit. later on the ceo of roblox joins us to discuss their quarter, a.i., much, much more. "squawk box" will be right back.

time now for today's aflac trivia question. in honor of national s'mores day, what year did the recipe first appear in print? the answer when cnbc's "squawk box" kins. p.” must be talking about the expenses health insurance doesn't cover. so who's talking about the money aflac pays to help close that gap? gaaaaaaaaaaaap!!! aflac! aflac! gaaaaaaaaaaaap!!! it's about to go down, baby! aflac! aflac! stop that goat! get help with expenses health insurance doesn't cover at aflac.com this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com the two most important things in golf are your swing and your style. dick's sporting goods has everything you need to upgrade both. find top-rated drivers and irons from callaway, taylormade, titleist and ping. tour balls from your favorite brands. and the most dapper styles from travismathew and walter hagen to calia and lady hagen. you handsome devil. select the best golf shoes like footjoy, nike and more. and get back on the course with one-hour pick up.

look good and play great with gear from dick's sporting goods. businesses need 5g solutions today. that's why they choose t-mobile for business. mlb partners with t-mobile to not only enhance the fan experience, but to advance how the game is played. aaa relies on t-mobile's network to stay connected nationwide, so they can help get their members back on the road. and we're helping pano ai innovate, to stop the spread of wildfires. now's the time to see what america's largest 5g network can do for your business.

now the answer to today's aflac trivia question. in honor of national s'mores day, what year did the recipe first appear in print? the answer, 1927 the recipe was first featured in a girl scouts of america guidebook. welcome back to "squawk box. i'm dominic chu. let's start off with a check on morning movers of novo nordisk those shares have been on an absolute tear this year. and specifically the last few days the danish drugmaker is lower by 1.75%, just around 40,000 shares of volume. you may recall two days ago shares surged to a record high after it set a study of its weight loss drug c, it reported earnings and raised full year outlook because of surging demand for wegovy.

now today the company's ceo told reuters it will continue to limit u.s. supplies of wegovy into next year as demand outpaces its ability to make the drug novo nordisk says it is spending billions of dollars in an effort to expand that manufacturing output on the earnings front, watching shares of disney higher by roughly 2% now 160,000 shares of volume that's off the extended hours high by the way. the media and entertainment giant narrowly missed expectations the positivity being driven in part by disney's announcement it is going to raise prices for its streaming services and crack down on password sharing, like what netflix did and then we're going to end on entertainment of a different variety. online video gaming related. shares of roblox now up 1.75% after they lost more than a fifth of their value after the entertainment plat form reported disappointing results. shares are trying to stabilize on roughly 90,000 shares of volume we'll get much more on that story later on this morning.

next hour when roblox ceo david baszucki joins "squawk box" again in the next hour keep it right here "squawk box" will return after this commercial break. myplan from verizon. switch now and they'll give you nfl sunday ticket from youtubetv, on them. (hero fan) this plan is amazing! (josh allen) another amazing plan, backing away from here very slowly. (fan #1) that was josh allen. (fan #2) mmhm. (vo) for a limited time get nfl sunday ticket from youtubetv on us. a $449 value. plus, get a free samsung galaxy s23. only on verizon. ♪ (upbeat music) ♪ ( ♪♪ ) constant contact's advanced automation lets you send the right message at the right time, every time. ( ♪♪ ) constant contact.

helping the small stand tall. how can you sleep on such a firm setting? gab, mine is almost the same as yours. constant contact. almost is just another word for not as good as mine. save 50% on the sleep number limited edition smart bed. plus, 36 month financing on select smart beds. shop now only at sleep number.

welcome back check out shares of six flags this morning they just reported weaker than expected quarterly results earnings were down 55% year on year to 25 cents versus the 78 cent per share expectation my dad has been watching since 6:00 a.m the problem here, an increase in self-insurance reserves. we're starting to hear this more and more from companies. six flags cited an observed pattern of increasing litigation and settlement costs in the industry this is known as social inflation. their revenue missed at $444 million, attendance was up 6% over the prior year, also shy of the street's consensus more claims, injuries, that type of thing, settles andsments and rewards. economists expecting july cpi data to show another month of slowing inflation

and we'll also get the weekly unemployment -- the weekly jobless claims this is kelly's favorite and what did you -- >> the desert island. >> the desert island, the professor calling it the desert island number that you need to know futures right now ahead of that, 161 points higher on the dow nasdaq looking to open higher about 95 points. s&p 500 up 21 points for what's at stake for the markets and the fed, want to bring in emily roland, co-chief investment strategist at john hancock investment good morning to you. what do you think the numbers are going to be and how do you think the market is going to take it? it looks like the market is kind of excited this morning. so we got to hope for a decent number >> yeah. big morning today. of course, the consensus expectations for .2% month over month increase on both core and headline i think the development that is throwing a wrinkle into expectations is china stimulus or announcements of china stimulus over the last several weeks, which has caused commodity prices to see a meaningful increase.

and as increase inflation expectations so i think there is some risk to the upside here in terms of this inflation print, particularly on the headline side. i don't think equities would love that if you saw hotter than expected inflation coming in i think it is largely been priced in on the fixed income side we have seen a meaningful backup here in bond yields. we would be watching that, also watching the dollar. higher inflation may cause a bid for u.s. dollars and in that environment, where we typically have seen the dollar increase, that's caused a challenge across risk assets. >> what have you made of the run that we went on and then a bit of a pullback -- pullback, maybe people taking profits, what are you telling clients what are clients telling you? >> we had an incredible run in terms of risk taking coming into the quarter here so i think some cooling is warranted. i keep hearing about buy the dip or this correction it is like a 2.5% correction i don't know if we can actually

apply that word to it. we think it makes sense in this environment. we have seen this huge shift in sentiment from fear to greed and sort of this merry-go-round of now it is no landing we think this is a challenging backdrop we look at mixed macro messages. it is look a stop light that is going from green to red and back to green and red and we almost see this macro picture as being yellow it is telling you to maybe take your foot off the gas a little bit and look both ways before crossing the street, but it is okay to proceed. the data is holding in okay. it is decelerating, but there is a few factors here we need to contend with we still have the lagged impact of higher rates likely to hit the economy here yes, the fed is positivie in pausing likely here, but it is unusual for them not to be cutting with this the yield curve to this extent liquidity challenges, i'm not quite sure this time is going to

be different. >> so, play it out if we speak at christmas time this year, where are we going to be flat down i can't tell from your tone where this really lands. >> yeah, it is a great question because it really does sort of depend on your timeline here we look at us as right now being firmly planted in late cycle territory. so that would mean the leading economic indicators are negative, the yield curve is inverted, all the classic session signals and this is a long late cycle environment, leading indicators are negative for 11 months in a row we're looking at a yield curve inversion on the 210s that lasted 12 months those can go up to 16, 18 months we have seen that happen before. so you could see an economy that remains resilient for one or two more quarters, a market that remains resilient for one or two more quarters. not a great time to be adding risk in portfolios that's one of the reasons we have been looking at higher

quality parts of the market, areas with great balance sheets, lots of cash, good return on equity and even more defensive options. for example, we're starting to see healthcare perking up here a little bit that's a high quality option that is actually trading at a discount to the market >> emily, thank you. climbing the wall of worry, her worry and a lot of others. we appreciate seeing you this morning. thank you. coming up, the california state agency will vote today on whether the state is ready for more autonomous ride share vehicles phil lebeau will bring us details after the break on that that vote could mean for companies like waymo, cruz and everybody else we'll speak to an analyst about the company's latest quarter "squawk box" will be right back. p companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause]

sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity.

he snores like an angry rhino. you've never heard an angry rhino. and opportunity is someone who can make the connection. baby i hear one every night... every night.

okay. i'll work on that. save 50% on the sleep number limited edition smart bed. plus, 36 month financing on select smart beds. shop now only at sleep number. welcome back we had deal news in the retail world today. that's why capri is up 57% as tapestry, the parent company of coach and kate spade is buying it, which also owns coors, jimmy choo and versace under the terms of the deal, tapestry will be paying cash for capri holdings just about $57 a share

tapestry shares are down about 3% this morning. total enterprise value of approximately $8.5 billion for the deal let's talk more about the implications, jan kniffen is here both of these stocks have been struggling for years >> i'm a big fan of this transaction, because like all six of these brands they got and i've always been a joanne fan since she was working with me at the may department stores company many, many, many years ago. tapestry's further along in its progress than capri has been and they still all got great brands so they can all be advanced from here i think this will be a great merger and big fan of aspirational retail as you know and i've been a fan of both of these companies' changes they made they were both moving in the right direction. it was just the tapestry was further ahead. now they can put that --

>> the twitter-verse, you know, make of it what you will, doesn't have very high opinions of either one of these stocks. and sees this as kind of the coming together of two -- so explain why you think that this will be maybe transformative in a beneficial way for shareholders of tapestry, which, again, the stock is negative on a five-year basis. >> coach has been a great brand, right? and it went through the valley of the shadow of death and they fixed it and it came back out and coach is running well. kate spade has turned the corner because it is running better and stewart weizman is also performing better. i think those three brands that tapestry has have already gotten to where they need to be it is just advancing the ball. in the other case, versace can be a really great brand and it just hasn't gotten there yet and they were just starting to get it moving in the last year so i think that's going to be a big winner in this portfolio >> could versace --

>> i think all three brands they just awcquired will be winners. it takes the same care and feeding that you have to do with any brand and they were just getting there. i think this is a merger at the right time i think this combined company at $12 billion of revenue will be a big player in the space and hones aspirational retail now. and i think that's a good place to be. >> i just want to sneak one more in, we're a little short on time, i look at versace and think what would have happened if it was owned by lvmh. how much of a gold standard has that luxury leader set and how much has everybody else just kind of paling in comparison >> well, lvmh owns all of the brands, right? they have done a fabulous job of managing brands, a fabulous job of acquiring brands. that doesn't mean there is not room for these six brands to do really well under tapestry so i still am a fan of this merger this may not be lvmh, but it still can be a really strong company with six great brands. >> fair enough jan, thank you for joining us. glad to get in your thoughts

this morning we appreciate it >> thank you a programming note, tapestry's ceo, you heard him speak highly of joanne crevoiserat, on "squawk on the street" at 11:00 a.m. today. the future of autonomous ride sharing is facing a critical vote in san francisco today. phil lebeau joins us with what is at stake for companies like waymo and cruise a big one. phil >> it is a big one, andrew near term this impacts what will happen in terms of ride hail services, autonomous ride hail services in san francisco. let me run down what the vote is today, it is being held by the california public utilities commission that is the agency in california that regulates all ride hail companies, not just the autonomous ones, cruise and waymo are applying to expand their services in the city of san francisco. not state wide, just in the city of san francisco they would like to have many more vehicles, 24/7 service, and

they can go anywhere in the city as part of the application here's the problem while there are many letters of support for an expansion of their services, there are some heavy hitters within san francisco. city leaders who have complained about high profile incidents where emergency vehicles have been blocked because an autonomous vehicle has stopped in the middle of a road, there have been a few accidents been reported where people have said, look, this was not working the way it was supposed to work. and as a result, you have had city leaders there who have been very vocal saying this is not the time to expand their services, we have seen problems time and again with these vehicles so as you look at shares of general motors, remember, cruise is a subsidiary of general motors and gm is very optimistic about the future for cruise. they have said that cruise could have $1 billion in annual revenue by 2025.

the services expand into cities like dallas and houston, nashville. they believe that this could ultimately be the huge part of the future when it comes to autonomous vehicles at general motors but to get there, guys, you got to expand first in san francisco. and that will be the vote today by the california public utilities commission >> phil, you have been in these vehicles in san francisco, right? >> yeah. >> so what's -- >> are you asking me my thoughts >> yeah, i'm asking you your thoughts what do you think? >> well, i haven't been one in -- in one since the pandemic. i was in some of the early iterations of cruise look, once you get used to it and they deliver you to your destination, it's no big deal. but i can also see the frustration for somebody who is behind a vehicle and it suddenly stops and there is no reason for it to stop or for an emergency response vehicle that is going to the scene of a fire and for some reason there is an autonomous vehicle that is blocking, you know, a fire truck

or an ambulance to get to a designated location. so i understand the frustration there. and i have relatives and friends in san francisco who, when you bring up waymo and cruise, they say, yeah, they're everywhere, and you'll see them stopped every once in a while and you'll be, like, why are they stopped they're not perfect. definitely not perfect. >> is this just a technology story which is to say maybe it is not up to snuff yet, but give it two years and the question is should san francisco or other cities thinking about this give it two years >> that's one of the arguments that are out there from the city leaders. now, the counterargument you will hear from supporters is you're never going to have something that is 100% perfect you will have incidents in some fashion somewhere. but those incidents are very, very small, relative to the number of miles and the number of trips that these autonomous vehicles provide >> has it come down a lot in terms of stopped cars?

do they have fingers on showing that there were a lot more stopped cars in 2020 than -- >> they have figures yeah the rate of where they get involved and they have to go and physically move a vehicle, those incidents have come down but you know how this works, andrew all it takes is one high profile one. where an ambulance can't get to a scene or it is blocking traffic and there is a huge traffic backup then you have people saying, look, here you go, the computer is not perfect >> phil lebeau, fascinating, we'll see what happens i'm sure we'll talk about it with you again very, very soon coming up, disney moving higher ahead of the open despite a mixed report last night. and streaming subscrapesubscrib slowdown we'll debate after the break. and later inflation numbers are set to be released in 41 minutes' time and thjoess e bl claims, we'll have the results and the market reaction coming up

reminder, get the best of "squawk box" in the podcast. follow squawk pod and listen anytime. we're back after this. there are some things that go better... together. like your workplace benefits... and retirement savings. with voya, considering all your financial choices together... can help you be better prepared for unexpected events. voya. well planned. well invested. well protected. my cpa told me i wouldn't qualify for the erc tax refund, so i called innovation refunds. their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your small business qualifies.

wall disney reporting a larger than suspected loss from subscribers last night bob iger announcing on the call the company will hike disney's ad free. take a look at the screen. hulu will now be $17.99 per month, the subscriptions essentially will cost twice as

much as when the platform first debuted. iger had this to say about the new plan >> the advertising marketplace for streaming is picking up. it's more healthy than the advertising marketplace for linear television. we're obviously trying with our pricing strategy to migrate more subs to the advertisers accorded tier >> joining us is ken leon. is this the right move for disney to be making to try to push people in this direction? >> well, it's great to be with you, kelly certainly for operating streaming, price increases is the trend but there's a lot of competition. disney is not alone, it's not just netflix, but there are other very large significant players. so the real opportunity just with this one business is advertising revenue. so disney's take in the third quarter was 40% or add pay

versus ad-free plans the more interesting story for disney is where do they go with legacy franchises and also how do they play with the future of disney >> right >> so the subscriber attrition they reported last quarter, is that in response to high are prices and are they doing the wrong thing by continuing to double down here >> i think pricing is just following the lead of others such as netflix. there is room and i also like to talk about price elasticity. it's there but they have to have a compelling bundle, whether it be disney plus and hulu to really drive subscriber growth and where they wanted investors to look at the success is the domestic core business, which is disney plus, as well as hulu, which next year they're probably

going to own 100% of that. it's not going to be developing markets outside the u.s. >> in terms of deal sequencing, they will be acquiring the rest of hulu, they're going to need some cash to do that and take on more debt as well, do you imagine they might sell or spin off or do something else around the linear channels beforehand >> yeah, 100%. so we got a toe in the water with the announcement of disney with sports gambling, with entertainment. but what's interesting here health insurance going on in the disney kingdom is all of a sudden kevin mayer and they're going to play with what do you do with legacy assets, whether it's going to be a spinoff or find strategic partners for broadcasting and abc and other cable channels, the opportunity

for investors is put that aside, let's look now at the new disney, which is parks, as well as film theatrical with streaming. that's good but i think why the stock is not up today is because a lot of investors have questions whether you're going to have the profitability of streaming as we had for decades with cable pay tv. >> is that a question? i don't know if that is a question i mean, you can look at the margins that netflix has versus the margins the media companies had call it a decade go and you could say it's completely different industries even. >> if you're an activist, you could say break up the parts to streaming. i think bob iger shouldn't be just thinking about those executives in entertainment but he should be talking to larry at

general electric or ed breen at dupont because we have to unleash the underlying value for it to go higher and streaming is not going to be as profitable as where we were before >> all right ken, thanks very much. we appreciate your time this morning. thanks for joining us. >> when we come back on the other side of this, don't miss our exclusive interview with roblox's coe, dave baszucki. and just over half an hour away from the july cpi numbers. 163 points higher on the dow box becomes coming right back.

good morning stock futures pointing toward a bounce at the open, new results from alibaba and investors set to react to new cpi data due out in just half an hour and is there a crack in the meta

verse? we're going to speak exclusively with the company's ceo as the final hour of "squawk box" begins right now good morning and welcome to "squawk box" right here on cnbc, we're live at the nasdaq market site in times square it is hour three >> it has flown by >> joe and becky are off today, mid summer here. nasdaq would open higher we're going to get the cpi data and more, including kelly's favorite number. we'll tell you about that in just a moment. all of this like ly or may

change 10-year note at 3.93 just under 4 right now and the 2-year now at 4.791. if the 10-year is slipping, they're expecting a soft number. i can't read it any other way. economists are expecting 3.3% to be the headline cpi number versus last month's. on the core, excluding food and energy 4.8 if it comes in at 5, forget it that would be unchanged from last month and we have an update on the wildfires in hawaii i'm sure you have seen the devastation and trauma a statement from maui county says at least 36 people have died as the fires sweep across the island driven by strong winds from hurricane dora passing to the south

some adults and children were forced to flee into the ocean to get away from the flames >> we have another developing story. china criticizing an order limiting investment, quantitative computing and a.i and a foreign ministry calling the order blatant coerce and technological bullying >> i thought michelle had a lot of good insight. go back and watch that interview from a little while ago. let's get to dom chu now i was trying to guess them is six flags there? >> six flag was was in there >> andrew opened the door with

late breaking news from china with alibaba there was growth in its economic retail segment, growth 6% on a year-over-year basis overall revenue growth came in at the fastest annual clip since september of 21 so alibaba up 3% and novo down right now. a few days ago shares surged to record high after it showed its weight loss drug wegovy to

prevent a heart event. it will continue to limit u.s. supplies as the demand far outpaces its ability to make the drug novo nordisk is down about 3%. and a big merger and acquisition comes in tapestry is going to buy capri holdings capri is the parent of michael coors, jimmy chu it can better compete with larger, luxury units in europe

andrew, back over to you >> the conundrum for this company, we were talking about where they land in the pecking order or stack these are not what they call quiet luxury, which i think is the new -- >> orga >> oh, you think they're too flashy you make a good point. >> it's about the brand. we've moved into this new place where people are spending extraordinary amounts of money to pretend they have none. >> what if you take the branding off of everything. >> exactly >> we're going to get news at 8:30 our next guest has a 30-year track record he says trillions of deals done will help create a tough cycle ahead. joining us, a global

opportunistic credit firm with about $18 billion under management good morning to you. >> good morning. thank you. >> it's great to have you here we had a guest in the last hour who said we are very late cycle. but then we had somebody on i believe yesterday who thinks that we're on the beginning of a new bull run so which is it >> you know, we think we are due for a slog over the course of the next couple of years is there a crash coming? don't think so but is it a slow growth world? is there a shallow recession in our future in the u.s. absolutely so to our point of view, credit spreads are going to be wider, growth will be slower and there are these accumulated problems storing up which are going to create issues. most people in the credit business like issues where do you see the issues

coming, if you will. >> well, some of them are already here on the face of it like, you know, you wake up this morning, you see stock markets up, you see all these green arrows and can i tell you, i've been doing this for 30-plus years i've never been busier in a market which looks so serene it looks like equities plus 16%, high yields plus 6 and where are the issues large parts of manufacturing are already in a recession europe when you think about it, already in a recession office property, people are hiding, waiting for maturities, right? a couple of trillion in office properties in the u.s. >> just three or four months ago the only thing we talked about was office property becoming a

problem come '24 and therefore becoming a problem for regional banks. i could show you the sort of domino story of what was supposed to happen and i can't tell if either something meaningfully changed or if we're now all of a sudden just wearing blinders to all of this. >> things come to a head, andrew, when you have maturities nobody gives up on their office property, their equity and maturities you're seeing some very large firms give up office properties already and i think as the maturity cycle kicks in over the next two years, that's when you see the slow-moving tsunami really hit >> you use the word tsunami. it's not just one office property here, one there, it's so many of emthat then it hits other businesses >> one tree does not fall in the forest all by itself

>> then play out the dominos do the permeations for us. >> i don't want to sound alarmist the world is today in a better place with all the issues and fractures we have. if you have a $2 trillion office market and it trembles, it's going to make credit spreads in that part of the world just kind of spike out it not like the subprime tree fell in the forest and nobody else heard it's going to affect all the other credit markets >> let me ask you the flip side. we had somebody from bank of america on this morning who has real insight to people's bank accounts, checking, savings and the strength of those accounts to me surprised me, especially

given the pessimism or skepticism that you see where our economy is and how people feel and the like. >> so different point of view. if you look at those manufacturing businesses i was talking about, good businesses, great market shares, 15% volume declines, 15%. gfc-like volume declines if you look at kind of europe when you look at kind of a slowdown which is happening all across, it's broad based so we're not trying to say, hey, everything in the world is collapsing, the consumer in the u.s. isn't, your bank of america data, but the other stuff is happening as we speak. so in the high yield market today, it looks like serene ducks gliding across the horizon and you look at the tumult going

on underneath and how busy people like us are already, it's just points to large parts of this economy are going to struggle >> and you think at some point the stock market and spread will catch up to that when do you really expect this three months, six months what are we talking? >> high yield spreads today. you say a crisis, you're in a crisis when high yields get out to 800 basis points to treasuries it happened five times in this century. right now we're at 400 basis points, right? no crisis. the bottom part of the high yield market is in a crisis, what i'm describing where we are seeing opportunity do we think spreads go out to 500, 600 by the end of this year yes. i think our view is just it's

cautious, it careful >> but it coming we're not talking about two years from now, by december? >> no, not at all. >> you got to make us a deal you got to come on back before two years from now because you scared some people no, no, we appreciate it thanks again >> still to come, the inflation numbers are on the way first the ceo of roadblocks joins us stay tuned you're watching "squawk box" on cnbc the right message at the right time, every time. ( ♪♪ ) constant contact. helping the small stand tall. my dad was a hard worker. he used to do side jobs installing windows, charging something like a hundred bucks a window when other guys were charging four to five-hundred bucks. he just didn't wanna do that.

he was proud of the price he was charging. ♪♪ my dad instilled in me, always put the people before the money. be proud of offering a good product at a fair price. i think he'd be extremely proud of me, yeah. ♪♪

nice footwork. i tman, you're lucky,mely watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! that's what i'm talking about. [ cheers ] running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing.

yes! that's what i'm talking about. [ cheers ] running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. welcome back to "squawk box. shares of roblox are up. this afternoon missing analyst estimates and a wider-than-expected lost the company claiming higher level of expenses to support the business joining us is roblox ceo david baszucki we love the company and my son

loves the company and some folks don't love the company as much as it did. what's going wrong i'm going to put a question mark after that question and ask you the question >> thanks for having me on the show we always talked about building a platform we're well on our way to that. we have 22% bookings growth, 24% year on year hours dwroet and in many of the big cohorts where there's enormous head room such as international, where we grew 40% in india and over 100% in japan and also in older users where we grew 36% for '17 through '24, we show continuing

growth, if not selling growth. we're growing really well and generating cash and showing that we're going to show more and more operating leverage in q3 when we expect to grow faster in our expense and in 2021 when we expect to fro faster than our head count expense for husband it was a solid bored are to the direction of our vision >> were you surprised by the reaction market >> it's hard to predict what, you know, how the market works we have a lot of really, you know, great long-term shareholders and we're generating class we're starting to lay on more and more leverage. we're going to show and predict to show double digit ebidta and all through 2024 we're running on all cylinders and growing in four different directions. >> what is the dus tint timeline

and path to profitability? i think under all the questions they have. >> we defer over 28 months all of the revenue we make when we sell virtual items, we run more on cash and it's why we can show 3 billion in cash and continuing to generate cash even when we show gap losses. so we do in our letters say that's how we run the business and we continue to grow both our bookings and our cash. >> how much do you think this is an issue about managing cost versus what the growth rate of this company can be kelly and i were talking probably two hours ago, hopefully you were not awake at that hour because i know you're on the west coast. one of the things we talked

about is things were not as parabottic as they were. they're still growing. maybe things feel different. i don't know >> for us we're well beyond the pandemic are thankfully and our year-on-year compares right now continue to show strong growth, even in this more normal world we are going stho more and more leverage over time we think, you know, that's going to be appealing to some investors and continue to grow more and more cash so it may just, you know, we continue to feel very optimistic about the business we're launching our immersive ad platform, which is reall exciting we'll add growth on the economic side and we think that's a visionary approach and we continue to bring in roadblocks something we use of day to communicate with friends and lf

ones so we continue to innovate and build great innovative product that brings people together. >> let me ask you about that the advertising piece, it looks like it's actually going to ramp quickly. i wanted to speak to that. and also the in-app purchase piece. we were talking about what a big business that has become >> yeah, on the advertising piece, our vision and we think it going to come to play is that there's going to be a new and there is a new immersive form of advertising, not just image, not just video, but the ability for you and me and our friends if we happen to be in roadblocks to go visit a brand we love. that could be a brand like nascar, like nars cosmetics and we think going and experiencing a brand together in 3d, whether we try things on, whether we, you know, hop in a nascar racing

car and drive around, we think that's going to be really something people love with brands in the early signs we've seen some areas on roadblocks where there's more demand than supply for these types of advertising units and we've seen 19% of the developers on the roadblocks platform start to put these ad units in their, teariers these are fun things we can did when we're traversing ton we continue to see great growth in the economy. one of the biggest invasions we'll bring forward at the end of the year is in addition to halts and clothing and all the other things we wear, our economy will open to full-on avitar we're going to start having a

much wider range >> you talked about the messaging piece of this. and i heard an where does that all go, in your mind >> yeah, we think this is really much, much bigger than that type of thing we believe what we're doing at roblox will be the next form of communication, just as we're very if he and right now ultimately the next form of communication is going to be immersive 3d what we see people doing when they play on roadblocks will be something we do, something we do in our office, that's why woor

optimistic about, or wise known as builder man for those folks who play on road block, thanks for joining us tomorrow. maybe next time come on as builder man. >> i could come on as my avitar someday. >> we'll work on that. >> we'll join together on roadblocks next time >> got to have our sons do the interview, though. >> coming up, the littest on changes to disnew a frrng stay tuned. this cnbc, you're watching "squawk box.

welcome back lots of retail news this morning. now we have some earnings from ralph lauren just reporting an adjusted 234 share expectations by 1.5 billion. the share are down nearly 3% premarket. still ahead, bringing inflation data july cpi, jobless claims the fun begins next on "squawk box. stay with us

ah, these bills are crazy. she has no idea she's sitting on a

goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

welcome back to "squawk box" on cnbc. 30 seconds away from the july cpi report and jobless claim

number the whisper is dove. whisper is 4.6 for the core, maybe 3.1 on the headline. so expectations are pretty muted in that direction. we've seen the 10-year treasury yield below 4% in anticipation of that. 385 is the level to see if we're going to retest the highs. rick santelli, how does it look? >> let's start out with cpi, our jum read of.10%, exactly as expected and if we look at gore, also up 0.2% it's the second month in a row where core is up 0.2%, which mean it's the nirthird is up ane haven't been a lower level since

2021 year-over-year numbers, 3.2 higher in the review mirror. obviously the most important data point here, 4.7, exactly as expected and .1 less in the rear view mirror, which was 4.8, which was the lowest since oct of 2021. excuse me, oct of '21 and we're still hovering because 4.5 is the number now, even though 3.2 is higher, kelly, than the 3.0 in the rear view mirror, there is an asterisk here. the fact that we were expecting a number higher than that at 3.3. because if you look at interest rates, we haven't moved that much we were basically at 397

right before we get eprenumber pappic, we move down there arguably maybe a prt gauge right now. it was at 473. it was at 476 down five basis points yes three opening equity futures, the tu they're on th way to 250 the data points, even though we had that one if and everybody tries to monitor the interest rates and yield curves the treasury has been a little more stubborn on their yields. we have lots of deficits it if

ten months and this fiscal year. ten months in. he's already 15 1/2%, and those number ahon had you but also some some of the rating agencies many have dismissed, exactly what they might be closest to. kelly, back to you >> rick, thank you >> i'm sorry, i'm sorry! >> please. claims not quite as positive 248,000 of continuing claims, 1,684,000. my apologies viewers and listeners, i got so caught up in cpi. loy back to the lag and maybes

that why interest rates have been a little more stubborn on the long end, 1,684,000 goes back to the woman and 379 that we had in the second week of july we have not been over 1.8 million now since the last week in april, which really speaks volumes about how the labor. >> thank you very much, rick let's get to our econ imagine. the market is holding on to about a half a percent open and angela hanks is the chief of programs and a form are biden labor department official. and rick is still with us. mike san tolly joins us on the new york stock exchange. steve, what jumps out as the most impactful in.

>> what jumps out the fed crashers just took it off. >> the november rate hike had been up 30, 35, as high as 40% it not 26% so they're still on guard for november but they're basically bringing down this probability and i think it's a combination of a little bit high are on the jobless claims, though you want to be a little careful in the summertime because there are layoffs. as rick pointed out, the continuing and then you look at some of the internals on the inflation report, you have that used car decline and actually new vehicles were down as well shelter is a little interesting

here we did tick up to 0- in we know they have ticked up butover all this is in line with itsity that inflation is coming down, not as fast as it had been coming town and that the fed is sort of at least let this one at least ride as long as, as long as we're moving broadly in the right direction i think it's going to be okay. >> earlier this morning, he said if cpi rent do trend, headline inflation could be half to 1.4%. he said bill ackerman is likely to be as dead side on

treasuries bill and what's the significance of this morning's data, michael? >> well, i -- i'm a little less sang wish about it than i think the bond market is what i see is the second month in a row independent focusing on consider dprrm and working 12 months back, that can npg picked up 0.2 in july and in june. in a nch, less than what we had several months ago my worry is maybe we have a economy with 5% underlying inflation. we've now got 4%

financial conditions aren't kite i don't think increases and that i think is be flufrmt and what did you see six, eight months out in terms of the broader piece. sflt fed has indicated comfort with this. they might take september off. the markets right be right about that but i think commonwealth home we tonight is likely and going in to 2024 i think the fed is going to want to see evidence that underlying inflation is on track to hit its 2% target

i thid they'd be comfortable with that making particular sun between a level downshift and getting stuck at frnd the ditia i think support a shift down to four i'm not sure the ditia supports a trend. looks like it heading back to two. there or were so that's where i'd love to start. we saw last week some really strong market numbers. we added is f a trend there and we're also seeing pretty inflation rends it had ffl we know that the impact of thos

nchg and i understand they're trying to get unfligs town but we'll have to worry about what will happen no f we have inflation cooling and we're seeing that consistently month over month and year over year, this time last year we saw peak inflation. we were at 9.1%. in the last year we've to then i'm encouraged by these numbers. i think that it shows but i'm fwlood to. >> some green after what's been a series fchgs and down about 3%

frps and i do think that you go back to the last cpi report, july 12th, the s&p was exactly at today's level i think you've got the real sell embrace people embraced the lpd twnk today's numbers are broadly entertainment with that but i think it not exactly news. cpi numbers have come being in very chess to forecast right out of it f and saying i think there's a tease ent whether we're still in the sweet spot in terms of a is dealing with f, even though the fed targeted 2%.

it's like ffls, kind of a slow and steady fed is okay for the markets. >> angela, last word sfli think these are really solid numbers. i think the fed needs to take a pause and not harm at labor market i'm feeling really good as long as they don't take a steam here. >> and part of the reason why it went up today is a zero dropped out of the prior month so next month if it 0.2, there's no base on this because it would be replacing it. so we have to stay at that level. the other thing that's really interesting to me and mob pr is that we have higher energy prices coming down the pike in the nks month but this issue of

declining prices in china, i believe that's going to wash up on our shores here and be an issue as well and perhaps offset some of what put i think that's a reason for calm and walking i never made that parl oork fwa frng but i do see in the next year there's going to be issues creep from a general slowing and delooning flvl and it's supposed to get much naser' we the real

issue of what's happening is it's slowing in terms of how it going up unless we get lotz of minus signs, it is in the going back to what it was precovid. even if we see all zeros, it's not going back to precovid and that is huge >> people didn't, right, beautiful fwm and it's a political issue, which if the fed wanted to make people feel better, they've targeted a price level. they would bring eggs down to the cost that they were before the pan testimonyic. if you tell, my buddy who rots a couple of boats and he's trying

to if it's not come become down. the trouble is if you bring down the price level, you also probably bring down the wage level. so people may want to feel better about prices coming do you but in a generally deflationary environment, you're watching your income comes down, too. but that's the plate call nut right there. it's the price level, not the price race >> what do you say >> i say steve's right there's nothing else to say. >> we'll wrap it up. thank you, everybody, for joining us this morning. michael, angela, steve, rick and also mike. coming up, we're going to go inside the third quarter of disney's earnings reports with conflicting signals. di any gaming ground this morning. and a programming note, tonight brian sullivan is hosting and

weighing in on strength and stab. and deliver solutions thatmplex needs. massmutual. partnering with financial professionals, benefits brokers, and institutions.

-- . welcome back to "squawk box. futures show gains of the dow up half a percent and the nasdaq up

about 1% >> let's talk disney shares gaining after a mixed earnings report and some big news on streaming prices ju julia, the stock looks like it's moved up a little bit but we did have a little move down yesterday so here we are julia? >> yes, andrew disney delivered an earnings beat while the parks division delivered a 13% in revenue, though there's mixed numbers a linear declining revenue and ceo bob iger declared streaming as key to the company's value acceleration he announced price hikes for

ad-free disney plus and hulu being hiked to $18 from $15 saying he's able to push streamers to the dual revenue options and disney now with 3.3 million subscribers. >> the advertising market place for streaming is picking up, it's more healthy than linear television we're obviously trying with our pricing strategy to migrate more subs to the advertisers tier >> and saying the consumer editions and it's not a matter of if but when they're talking to potential investors about how to be a part of that >> the strategic partnerships

we're looking to create and that we're actually in discussions about are aimed at accomplishing a few things one, content, meaning increasing the content that espn offers and, two, i'll call it distribution and marketing support. >> eger announcing they're working on another way to make money, i they will roll out monetization practices really taking a page from netflix. >> we were talking about this last hour in terms of timing obviously this hulu purchase, the remaining piece that is owned by our parent company, comcast, will come in 2024 he's talked about a whole bunch of things of spinning off linear channels and other types of

waves and what do you think that really looks like in. >> i think the hula. to me what's more likely to happen before any linear channel spinoff is figuring out what the future of espn looks like. the fact that they're talking, according to my reporting and nhl and mlb, they're talking about them coming in as investors in hulu. i think think that would incentivize everyone to figure out the way to monetize espn, as well having a will that first because the linear tv bundle will be impacted by what so many people subscribe to pay tv

because they want the ease of it but also want to know they can watch live sports. once they figure out what this future of espn looks like, what that will mean for everybody and we were talking about the big leagues investing in this rar than hulu. also, are or nor kind of big tech company spending in as a partner as well. do you think that's in the cards in. >> there was speculation that disney would sell entirely to apple. yesterday bob iger shot in a down >> alljulia boorscontinue.

179 points up on the dow back after this. ery day. get more with nature's bounty.

welcome back to "squawk box. july cpi report just came in as expected month on month.

overall i'd say a little bit cooler than expected and the markets up, rates are down and there's cpi and there's also claims. what do you think in. >> i think the biggest question is what are the feds going to do with this? the data is showing it coming down and i don't see rates in the next year or so going down i think as an equity investor one needs to be very careful here and not chase some of these valleys, and i -- >> and i heard it's your birthday >> happy birthday! >> hope ffully i'm getting wise

and not negative >> and you're a little negative, it sounds like, for next year. >> i'm negative because i think growth at any price is not the way to go. as you look at it more, look, you can buy 5, 6% bonds so you don't need it have proved value dividend stocks. what you really need are companies that are going to grow and have the proper asset allocation in them i think you're looking at companies like your parent company, come cast, j & j. what scares me, andrew, is investors are still chasing the same stocks that have worked for the last ten years the whole whole time frame has has changed but we haven't really adjusted. >> but people want to know the sure thing, right? and it feels like the mag 7 is

the sure thing what do you think is the sure thing is this. >> i think diversification is a sure thing you need to have exposure to health care, consumer staples. we don't talk how much about, whether it's sm of the i think those are areas that with rates where they are and a potential slower down but demand supply exsiding, you want to be in an area with pricing power. >> how do you typically celebrate your birs day? >> he goes on tv on his birth be some good friends. >> hopefully weather permitting. >> thank you so much for joining us >> thank you so much all right. >> happy birthday, sir a final check on the

markets. nasdaq 152in points higher the s&p 500 up about 30 points >> and thank you for waking up early to help us out >> i was like, this isn't so bad. tomorrow wake up early with us tomorrow "squawk on the street" begins right now. good thursday morning. premarkets holding on gains. annual core inflation gets to 4.7, near a two-year low yet again. >> speaking of inflation, disney is going to hike its streaming prices it did also report quarterly results after the bell yesterday. we're going to discuss all of the news coming up at th