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 the magic

kingdom. and ahead, the future for the company formerly known as twitter. we will sit down with x corp ceo coming up in the next hour >> these are numbers that you want to see if you're bull >> earlier this week there were a number of articles about how we overbuilt apartments and they're about to come on if that's the last sicking point, the fed can't dough claire victory i think they should do one more just because you want to be sure that the vampire doesn't rise up but this is going jay's way.

it's not a soft landing or hard landing, it's a glide. and the dichotomy, i think that they're fanciful and speaking more fiction than fact >> it will be welcome news to those who are long, for example, fang or what we like to call the magnificent seven. we're down, what, 4% >> and there's negative news out there for nvidia someone saying they can't deliver all the chips. you're not allowed to say true or false it is not a great move for fang. i do think the trade desk made me feel much better last night for alphabet. >> you like trade des snk. >> -- trade desk >> no, i don't like trade desk

the fang stocks are imploding. nvidia, if that doesn't go right -- >> nvidia is going lower >> when they come out of the quiet period and tell us -- everybody's still in these things >> well, if they want to trade out of them and then come back, good luck. it's like apple. but we have people at the price call of 18 said apple's best days are far behind them i don't like to mention name because that puts me in the category that my wife says why do you have to be so mean? she thinks you should have one show where you're a straight guy and one show where you do "mad" and why don't you sometime ask

management >> airfare down 8.1, pretty healthy. used cars down 1.3 a bigger drop than the prior month. >> and now the big issue and i this dana on, look, the strike is going to be a very interesting thing. i think a uaw strike where that your asking for $80 billion more, that is going to be the next thing we hear about when it comes to inflation wow. that is worse than the teamster ups. >> which is why my question to you yesterday is do you really believe the administration will cut this and would frn i don't know what they do

because the fellow who is running this, i mean, he's using rhetoric that i hadn't heard from anyone since the 60s. the 60s. david, he's using things from the old days when let's go shut major textile companies. j.p. stevens when i was part of the boycott, fantastic we put them out of business. >> negotiating position, isn't that what you should be doing? >> it's really ugly. we're going to say let's go, let's define our contributions. >> but the tenor is united, the

people >> so then you know. the people will neff be defeated that was the california for a major change in the way that everything's run >> i did, yes. >> i'm just saying, you can have consumer price index and then you can have the uaw if you have teamsters and your writers and everyone gets a big raise, well, i don't care about the consumer price index i don't care about the price of egg. getting them has been one of their main focusses. when people are talking about ups drivers, why shouldn't they make that money in. >> i'm not against that.

i'm saying if you're jay powell you should be balancing all of this >> do you think the auto companies can afford astop j - i'm not saying catastrophic but it would be really bad for the stock market if the auto companies have a long strike >> at the outset of a strike if that happens, it not necessarily -- >> you know, there's a lot of stocks you have to cut numbers if it's a long strike. i don't want to be jim farley right now. i kind of do want to be upbut i don't want to be -- this guy

planted himself agitated it are people and the increase in compensation is one of the wedges you use well we'll see. better keep running. >> oh, flrm obviously the writers and actors continue to be on strike that is another concern when it comes to companies such as disney or the uaw were to go on for a long period of time, a lot of things in terms of our outlook are going to change dramatically for disney, which reported after the bell last night, the stock does appear to be poised a bit when we start trading. the bottom line profit was

better than expected, the growth the lowest they've seen in quite some time. they did have a plan in which they gimme's and, by the way, they really stooef to have a pass worried still plan. >> plermts and everybody's moving up there. that's 67 9 they started with the at disney plus is long ago >> what did you think of the rhetoric in the call we're talking about the comps call where he basically said

that there was a previous regime that didn't know what it was doing? iger and miff about where they missed the service initially he'sity fending that line that was so far beyond ma evening they didn't have the technology and the ol yit wims with and so, david, i need your analysis could there have been a more linear view of cable tv and what was expressed in the conference call >> it was so bad it's nrnl so how much worse can you

get? >> that was a friday the 13th. >> yeah, we know that. but it's one of the bigger issues back up prp frm frms what to you consider to be the best? zrk you know, when it comes to the lynn yap being frms. >> nfrmt and talked about it on the call again, reiterated the fact that they want to man tan dpochl what they're looking at and we've naermtd and you

brought up apple any number of times as a potential it's a possibility and the other would be a league partner. you would have a league frng and julie was talking about this earlier, to memphis on the transing and both of those being seen as very beneficial in terms of the content and distribution and giving you what they would think i would hope for a heads start. >> and isn't a throw-time balance sheet good they mentioned the a-rating. >> and i think liquidity will be out sooner rather than later when it comes to identifying a league technology person

or and i think the kfgs it with. >> we had the announcement yesterday. in frmtsell a significant stake though, they would make money toing so and they'd have these partners >> they asked yesterday whether or not the penn deal comes in as a partner. and downgrade today. it's a showman's story >> my understanding is that penn deal will have nothing to do with interfering with the interest from a league, if not

leagues -- it was somewhat dismissed. >> it's 150 million for ten years and then the equities. >> i thought the downgraded pen made sense first of all, a member of bar stool, that was $1 he paid to get back bar stool he got hundreds of. >> are there dells that with and bare buying monsanto didn't go particularly well. >> you mean worse than nextel? >> i'm saying the worst game in history. >> could there have been an auction? >>, from there was a neegs a lot of young people would fch and

you didn't think that the regulators would block them because it involved the portnoys >> you newport oo frm and. >> yeah, frng by the way, as for the parks system, up 13. shanghai was open for a full quarter this time. but six this morning with this miss on the top and bottom line freezing some questions about tourism. >> yes bob did talk about how there are a lot of the florida places didn't do well >> but parks are still the earning engines of the company >> by far. >> they're very happy they stem the losses in streaming by a

billion dollars. >> they are doing direct to consumer so that it will get to the rftability >> i thought you raise prices or add them to the ad tier, are you going to lose. >> and do we know on netflix very good i've got some m & a in the fgs evening and in the nbs the fgs evening and in the nbs hour don'tless a

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some news in luxury retail coach apparent tap industry saying it has agreed to buy capri. do not miss an exclusive with the ceo of tapestry.

>> look, i think this apparel industry is really ripe for these kind of deals. let see what happens at -- tonight. i think this deal is -- i know t tapestry is going down but -- >> why is it fabulous? >> bahr jimmy chu, they did absolutely nothing with him. nothing. >> the jimmy chu price point of a thousand dollars was terrific.

stewart weisman's been kicked around a lot not really great grand brand in football i think together you can get rid of some of the bad brand but i actually thought and i've interviewed he's people in the old days, david, do not underest great fwr and -- they're tackingin and they can get their own coach, maybe fwremt morgan stanley among them even they they still got that twit ebridge. >> sffrmt and european luxury is

different, though. >> poor unbelievable numbers from europe. >> they are pli being in along the line before covid he owned the laws were twrp and commonwealth m under it. they would know me they knew the size of my wife avenue toe cleavage, it was fantastic. >> i don't even know what that breeze it. >> then i walk in there, i'm like, may, who who, if and they had the wrs. thank you.

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all right, let's get to a mad dash and then you have opening bell quick >> wynn, all cylinders u.s. very strong now the u.s. is not nearly as big as met-cal. let just say that the chinese gamblers are coming back and that is great news for win bus win is primarily noted a >> they say that in boston and they're trying to get manhattan. >> where it going to be or new york city. oh, again. like the amazon deal

[ cheers and applause let's get the opening bell here on the big board. it's asset manager firm pimco and around the 4500 level again. >> how about yesterday with the exception of nvidia, we had a really nice turn and that should -- at this time i'm afraid you seep guidance was good, we'll have the opposite. we're meandering and we're flopping and chopping. >> we haven't mentioned claims, 248. looking for 230. that might have helped the initial dip in yields after this morning. >> the fed may do something up we're going back to how are individual companies doing this? i think fang is definitely in play again apple's got to stop.

apple and nvidia were the two charmed stocks coming into the quarter and am i still think that ooub people are worrying about it crashing for the nfl. i think apple and nvidia are the two you have to watch. >> people were watching nvidia's 50-day yesterday >> super microsaid they're having trouble making the chips. >> you quoted that short guy that you like about nvidia >> larry williams in. >> you were saying he says it's going to go down >> he came on the show we had chart week, which is supposed to be like shark week >> we got it >> who has that shark week >> zaslav. >> he said, jim, you know august

will be a very tough month for nvidia it's going to go down and still in the gap i like nvidia longer term but short term i agree with that it was most in the s&p and that's just a rather high bar -- i think they're reporting a good number but i don't think the number's going to make you feel like -- remember, when we were at the ceo council, he said, listen, i can do $4 billion more i go back to interview and you know -- >> great chef, great food. >> he knows food better than anyone i know. >> i did not know that >> i think -- today morgan stanley reiterates overweight. >> look, they can't make enough

product, that's one thing. they told me during the period of covid they went and ordered a huge amount, but you need a huge amount to do what they're doing. now david knows that musk wants the largest super computer and. >> nvidia may have has a stock gotten a little bit ahead of itself >> my two favorite stocks this year have been lilly and nvidia. >> one is over a trillion dollar market value as we need speed. only is only half and so what that means is that scripts are going to be written not for weg

oafy >> so novo raises guidance for the second time. >> they're iing can't do that pause if you don't take it every week, you put the weight back on remember insulin >> moon but they're closing in on lrvmo. >> i think the big issue is how much is obesity causes and i think people will find that if you have a body mass that's above what and they're using body mask, i think they should be using waste they don't feel luke that. >> at some point there will be oral versions of those drugs

but youcan lose 20 plus percen of i don't and they tension >> i've been flour i'd >> look, it's a remarkable drug. they do no >> they work backwards the hulu monsters eat like three meals a year talk about diet. diet and exercise. >> i'm still there's concerns for older people in particular >> well, it gets p gets rid of everything at the same time. >> and we don't know the longer term effects of having food digesting longer in your stomach. >> we know the short-term affects ofblood.

again, we're talking about also goes to the willingness of the big payors to cover them the idea being you are ultimately saving the health care industry money as a result of all the things that come along with those things that you're no longer going to have, obesity, die and all those are gating factors the pill is not that cl. >> and that is changing it a lot. that's a seg way to nothing. >> i thought you were going to segue to crispy cream. >> wait, i'm not going to do ali mbah a moute alone >> did you just veto my seg way?

>> nobody is vetoing everything. best revenue group in 12 months? >> a lower international digital group, a digital media and entertainment group and then of course you still get t-mobile and poa balance and prng rng and i'm trying to get a good idea on guidance here. flrp a lot of deliveries and hampered people's ability to do something when they might not be getting it >> don't you think that the web service is worth if a great deal in. >> maybe, maybe. cloud commerce you mean? >> i mean, how do you jive that

number with how the economy is really doing >> i don't know. >> i mean, do you think that number could be let's say more fansful than fact? you think it's for real? >> jim, i can't -- when it comes to understanding what's truly going on, i'll listen to you and a million other people and still have no idea >> forget the other million people warner brothers/discovery is another big gainer johnson&johnson is coming back >> yeah. >> there hasn't been any new noise yet i didn't realize it was kelly and nova >> remind everyone what the

business is they're selling off. >> you can get snacks, the cereals you know and love, fruit loops, special k >> corn flakes >> corn flakes >> oh my god, pop tarts are going with kellanova that's the one >> emerging play >> goldman put up -- the journal yesterday did a critical piece to say it was soggy and that was. >> i think some of the parts is 79 >> yeah, kind of different from goldman. i like to deal because time and time again we've seen and, david, you know this that when you separate, eli and nova on board, when you separate, you get these manage and they tend

to do better and i think the cereal business has been stafford by the it may actually have the benefit of even being fruit at. >> people want to be at least with general mills 16 multiple they dope want to be up what they currently are but, david, you don't buy these stocks if you think we're coming out of a period where the fed is -- these are in the cluster box. not because kelloggs's will be

once one of the commodities gets together but the shelter the way the san francisco bridge said it will. >> i want to just say that people at home that kol og brands, stam bell brands have stood the test of time periodically when they're put on sale like this, they're kind of interesting. >> i'm a goldfish guy over cheese-it's. >> i think they ka and i called -- he looked like the keibler elf. i atal. >> and that was not mu favorite call i'm glad i brought it up. >> well, iger is doing fine. >> because he's got private equity

>> did he leave? >> well, talk about christmas tree i'll check that. >> and, jim, is this today's bounce of the day? >> well, good for them they were just trashed and trashed and trashed. the stock had made a comeback. good for them. they use machine learning and they actually do use machine learning in order to do marketing. has trade desk come back in i liked their quarter. traders was down 6.5 dollars and jeff green is ceo basically said there's google and there's us he made a very compelling case to buy the stock the reaction is people bought google and i think it's a really good point >> along the lines of what you were describing earlier about the and -- i don't know if it's

specific to that but it is notable. >> look, musk is in control of pricing. >> well,he's got real margin in the last four they're aiming for 8% margins on evs. that's their goal and it's going to take a while. tough business, huh? >> if an ev became something -- look, we have range fear, not enough -- there's a lot of remorse lately from. >> well, we got the price of the skad yesterday "who is going to make an affordable ev" other than the summer, she said she it but p but she drove it and

she want many and worth noting in deal news, but penn entertainment has given up virtually all the other gays yesterday. people took a hard look at that deal, what they're giving to disney, what questioning has carl raised earlier, a couple of analysts in terps of can they get to the market numbers with that partnership with espn and then tap industry is down 9% they're paying a big premium it's nine times adjusted ebitda but there's and i think the stap industry and they do have to sell some -- >> some samer if sewnos

commonwealth in with the prize profit from frm and i kid you, he rng so no sell my small cap stock. everything and orfwan being up 4. price made you if interest f ffrm. >> no. my go to is.

had much do you remember when he was in a tv show vacantly? what was the t have f. >> that's the thing they aring it for frpg you have a fan tas it can and potato chips. it a are f and you don't have your celsius today, though >> don't have anyway celsius >> water mellon celsius is by far the best >> oh really >> it's about 20% short. and people are shorting a stock that raymond la guarte took a

stake in she may be the most unsung person >> james is doing well in coke kentucky and okay. >> hasn't missed a quarter in like ten years >> when it was hand sup and that's because they have the convenient ffrm and in the quarter sometimes they do some pri f and red bulls yellow guy f and sometimes you get prooiz by market caps.

>> this. moneyster owns that case you know about sffrms it's very interesting. the higher you go, pure less premium. >> well, frm and you want it to be in thatffrmt nfrm make your north korea one a mess that's what i say. >> yeah he's in mash, if coming

up in the next hour fchlts yield down across the board. we'll be right back. 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.

dow up 370 almost. only one name in the red and that's merck you can see being led higher by names like nike and crm and visa 4515 on the s&p as we are pretty much done with the data for today. takes on claims, jim, driven by yellow maybe that was an outlier. >> very good point that helps. >> we'll get stop trading with jim in just a minute

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let's get to jim and stop trading. >> going to have a bad quarters. the ceo made that clear. china lifted a ban on group tours to south korea and one of the big trades is that people go from china to south korea, they buy a lot of estee lauder products cheaply and sell them, like the old avon in china so it's right that this stock is up my travel trust owns it and i want people to be careful. the quarter will be bad. that's been said we know when disney said the

quarter was bad, and it comes out bad the stock goes down. they report in eight days. it should go up on this, but ac a sent the fact that this -- companies that report bad quarters go down. >> they're allowing group travel to a bunch of countries, 70 countries. >> very positive i think it's good news. >> how about tonight then? >> okay. i've got ralph lauren and i think that by the way, people who are selling the stock ought to rethink their view. the company is very conservative on their outlook and this was a very strong quarter and they're doing it i think they're best performing apparel situation in the world and people are selling it because he gave a conservative forecast he's a conservative person. >> all the time. >> look at that stock. compare that to your friends at tapestry. >> my friends? >> you had them on. >> i did

>> no. >> what are you talking about? >> i'm trying to promote sara who has linda yaccarino. >> she does. >> we look forward to seeing you tonight. "mad money." as jim says, linda yaccarino of x corp coming up on cnbc with the dow up 400 (vo) verizon small business days are back. from august 7th to the 13th. get a free tech check and special offers. like a free 5g phone. plus, switch, keep your number, and get up to $300 off. with verizon business. it's your business. it's your verizon.

. good thursday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber, live at post nine of the new york stock exchange. markets enjoying a cpi print that came in pretty much in line and the lowest core annual inflation once again since 2021, down to 4.7. bulls taking the s&p up to 4525. in just a few moments we'll get sara eisen's interview with linda yaccarino, ceo of x, known formerly as twitter live from their new york city headquarters 30 minutes into the trading session, big movers we're watching, alibaba in the green beats system after revenue grows 14% year on year, the biggest annual increase. tapestry buying capri in a deal worth $8.5 million

we'll get details on that in a midget disney headed higher reporting a rare quarterly net loss but announcing plans to raise prices on the ad-free streaming tier and crackdown on password sharing. we're going to break down those numbers in just a moment as pell. consumer prices up 3.4% from a year ago in july slightly below forecast. steve liesman joins us to break down the important number, very much a focus of the market as we'v we've seen a positive sresponse in equities. >> everything coming in 0.1 below and we'll take it if you want to get more precise about it, i'll give you the number, that 0.2 was 0.16. it rounded up to.02 and that follows another 1.58 we're close to being at 0.1 and you have stuff dropping out of the index coming up, so this is good enough, i think, for the market and takes away the fear, i think, that the fed may hike again come september and even

november if you look at what's happened now to those probabilities, they're kind of taking off the month of september they're saying we can go on vacation in september because the fed ain't going to do nothing. down to 9.5% probability below 30% of the probability for november hike. >> steve, this morning you called claims your desert island indicator, the thing you want to have most if stranded somewhere. is today's print meaningful or something about the yellow bankruptcy that is affecting results? >> that could be in there. just to reiterate, carl, i said it wasn't exactly why being on a desert island you would want economic indicators at all, but that being the case, yeah, it's the thing that gives us the most contemporaneous view on the economy week by week, the numbers are pretty good. they don't seem to be revised very much. we're watching two things in that

one is that kick up. by the way, july-august is a tough month with adjustments sometimes the car manufacturers shut down, sometimes they don't, sometimes they come back there's that we're also looking at the continuing claims part of that which remains relatively low that's been bode well for the job market and again the story is the soft landing, we can bring down inflation without a big increase in the employment rate that hasn't happened yet, and we've been sort of waiting for it even up around the current level, carl, 250, not too worried about it, and it seems like at the moment with almost record low -- there's some prices that i think are worth pointing out -- airline fares down 8.1%, the used car prices, phil lebeau has promised us cheaper used cars, and he is delivering what does worry me a little bit is the owners of equivalent represent, the housing number, that ticked up and robert frank with a report this morning that new york rents are not coming down it is expected they'll come down and part of the whole inflation

is going to be okay story has a lot to do with housing price inflation declining. >> we were kicking around with jim that san francisco fed paper that got circulated this week looking at shelter going negative in mid '24. are you sympathetic to the doves hope that shelter becomes a tailwinds? >> you have to be. i look at, for example, the supply of apartment and rentals coming on, and i've got another thing, and maybe david wants to weigh in on this, but i have this idea, you had a lot of folks come out, these equity firms, and bought up housing i have to believe the cost of the carry of that housing to the extent that some of those places are either not full or vacant or even the rents the way they are for that housing, that those private equity came in and rolled up homes, i expect some of that to hit the market. that's a part of why i think

housing prices might come down, at least in certain regions where some of the rollup happened among the big private equity firms. >> many of them are still able to raise rent, aren't they? i mean, so for now, they're still getting a decent return. i don't know what their cost to capital is blackstone was the biggest invitation homes. >> right. >> you know, i don't have an answer for that. all i am surmising here is that the cost of carry, the return and whether or not they can raise, if you have apartments coming on the market and that's going to arbitrage the rents they can charge for the houses they have that perhaps you have a situation where some of that product comes on the market and then if you have, for example, i've been talking about this and mike santoli talked about this, not only are mortgages expensive objectively, they're also expensive relatively, as in, the spread over the 10 or the 7, carl, so there is some scope for mortgages to come down, even if

the fed doesn't lower rates. carl >> yeah. 7% getting a lot of people's attention. thanks steve liesman. let's get to the deal of the day, tapestry announcing plans to buy capri holdings like versace, jimmy choo and others courtney reagan joins us with more on what this means for the company and industry with the continued condolltation. >> there were no rumors of this leaked they say this deal does make sense. taptry secure and cap deal vool ume, to 30-day average price, most think that's pretty fair. taptry management, the deal combines six brands it will be acreative with $2 million and bring 33 million employees together around the world. former macy's ceo worked with the brands and tells me this morning he thinks it's a good deal for retail relationships actually it becomes a consolidated

business relationship. it is possible, of course, that they could have a little bit more power he doesn't believe there should be a regulatory issue as consumers notice really no difference they see areas where combination accelerates growth t tapestry could help with the relationship and make that more beneficial than it's been. capri's brands have international strength that should benefit like kate spade that tapestry owns that needs more brendan hoffman executive at neiman marcus and others, he says critical mass is what matters for luxury as evidenced by these european house brands like lvmh, and it takes deep pockets to compete globally. relatively sort of the same idea for a business model integration could be a concern tapestry doesn't have a great track record they acquired kate spade before it started losing favor and then struggled with stewart wiseman, supply chain, other integration

issues there citi points out this is a different management team at tapestry that has a strong acquisition of brand acquisitions. >> thank you. >> that stock price we'll keep a close eye given the decline. speaking of stock prices, an eye on shares of disney. the company posted what was a mixed third quarter. it did have subscriber losses in the disney plus direct to consumer unit, big restructuring costs and did beat the bottom line for many analysts and announced rate hikes across the streaming platform let's bring in michael mason, who has an outperform rating on disney did take his price target down to 115. you're an active participant on the company's conference call. you have one of your questions answered, the other you didn't give me your take on the quarter and what you heard on the call from iger. >> so david. the quarter was not as bad as we feared we talked about right after bob spoke with you at sun valley a

bit better than we thought cost savings helped. and we're still waiting, we're all waiting for the payoff on what bob's vision will be and what he will do upon the separation of this company it's a journey we thought it was going to be a tough quarter and we're seeing what happens in '24 when they buy hulu and what changes they will effect per the capital structure. >> i wonder from an investment perspective, sort of what energizes this stock price it will be when they have a great quarter, but is it if they do this deal in terms of selling stakes in espn and both technology partner of some kind, is it, again, i ask you the question, what in your mind is going to be that point at which people look at disney differently as they are not looking at it particularly well right now? >> it's funny. i got an e-mail from a client i'm going to echo what he said we thought that disney worked

when the earnings were beating street and when bobfirst got there, he was crushing street numbers. the past three or four years it's been the opposite they need to get numbers to place to start beating consistently, either through cost cutting or -- but there's so much uncertainty on forward estimates that's our funndamentl issue. until we on the street can better model the company and the company has the abilities to beat estimates, i think we're going to be in this range. that to me is what bob was able to accomplish beginning his career and the past couple years with bob iger they've been missing numbers and numbers have been coming down that's the answer, david we need confidence in their ability to hit forward system, and that's going to take time. >> they have taken on a good amount of cost out of direct to consumer, but you guys have done a lot of work on streaming at moffettnathanson give me your take on the strategy to raise prices

significantly on the non-ad tier does it send people to the ad-tier or promote more turn how does that figure out >> if disney plus was a normal streaming product, i would be very worried about price increases. they raised price $3 a year ago and gave people a chance to spun down to the ad product our view of disney plus tax is a super fan service for fans of marvel and families. it's not trying to play the game that netflix is in or amazon or hbo max. i think it's a smaller service with higher pricing. that's been my thesis all along. disney's parks have great pricing. i think disney needs to reor gent its strategy. i remember talking about this when they launched this product at such a low price point they add a lot of subs, they're losing $2.5 billion a year on disney plus with $8 billion revenue. it's not a good model. something has to change. to me, raise prices, lose subs,

that's fine. the business has to become profitable. >> all right again we'll be keeping a close eye on it with your help thank you. >> thanks, david still ahead this morning, an exclusive you don't want to miss let's get to sara eisen live from x's new york hq hey, sara. >> hi, good morning, carl. i'm about to sit down with linda yaccarino. it's her first interview since becoming the ceo of x, formerly the company known as twitter we'll talk about that rebrand and a lot reig amo rhtfter the break. stay with us on "squawk on the street." here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

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♪ ♪ welcome back to "squawk on the street." i am sara eisen live today from x's corporate new york headquarters joining me exclusively in her first tv interview since taking on the new role x corp ceo linda yaccarino. thank you for having us here today. >> sara, thank you for being here thank you for visiting us today. it's so exciting and to be on "squawk on the street" is a real privilege, so thank you. >> we're glad to talk to you we have a lot of questions, and i think we should start with, the most recent major announcement, which is the

company now being called x why did you do this rebrand? >> well, first of all, i think we need to rewind a little bit and remind ourselves that elon has been talking about x be everything app for a long time, even when we announced that i was joining the company. i was joining the company to partner with elon to transform twitter into x, the everything app. so, you know, also at the heart of the rebrand, x, we need to keep our minds open, that it's developing into this global town square that is fueled by free expression, where the public gathers in real time i want to stop on that for a second, because that real time, is what's most important about the vibrancy of x and how people interact with it, and now, it's all in one seamless interface.

think about what's happened since the acquisition, right experiences and evolution into long form video and articles. subscribe to your favorite creators who are now earning a real living on the platform, which is so exciting you look at video and you look at soon you will be able to make video chat calls without having to give your phone number and then payments. payments, there's been a lot of talk about that, payments between you and a friend, between you and one of your creators, so there's been a lot going on in the rebrand represented, really a liberation from twitter, a liberation that allows us to evolve past a legacy mindset and the thinking, and to reimagine how everyone,

everyone who is watching around the world, it's going to change how we congregate, how we entertain, how we transact, all in one platform. >> linda, i understand you're trying to present something new and a bigger idea, but you're brand person twitter was a strong brand you have tens of millions of active users, even meta with the name change didn't change facebook some think it's like j&j changing band-aid. >> i have to say, we can spend some time to talk about what bold ambition brings bold ambition, that the team at x has, delivers great experiences and great new products, and if you stay twitter or you stay whatever your previous brand is, change tends to be only incremental and you get graded by a legacy report card. at x, we think about what's

possible, not the incremental change of what can't be done, and if you think about -- if you think about the velocity of product changes, infrastructure improvements that have happened over the last ten months, it kind of answers the question of why rebrand, and the exciting thing about it is the user sentiment on the platform. it's only been three weeks, but the user sentiment on the platform - >> successful? >> three out of four, very successful three out of four in our user community feel good, a lot of them feel great about the rebrand because they look at us, it's habitual, they know where we're going, but what we found out was more exciting, which was there's much more of a broader conversation going on, what did this kind of clear canvas allow

us to do and there's broader conversations going on about new products, about long form video, about payments, so it's actually we're believing in our user community and not limited by that legacy thinking. >> you mentioned that it has always been elon he's been talking about this for a while, which does raise the question about your role as ceo and whether he shares control? >> mine and elon's roles are very clear i want to go back to the rebrand for a second if anyone remembers, i have it saved, not everyone has it saved, when elon announced me joining the company, and he was very specific and very clear, that i was joining him to help him transition twitter to x, the everything app, and now let's go to our roles and the clarity of that because it's pretty straightforward. pretty straightforward elon focuses on product design he leads a team of extraordinary

engineers and focuses on new technology, so think about it as elon is working on accelerating the rebrand and working on the future, and i'm responsible for the rest, running the company, from partnerships to legal, to sales, to finance, all the things - >> and you'ven to my in doing that >> yes, i have autonomy in doing that i have a great partner in elon it's been eight incredibly supportive weeks i know a lot of people ask me that question. they're incredibly curious but our roles are very clear, and the way elon and i talked about it before i started, was that while our lanes are fairly clear and defined, we are brought together by the belief in what we're trying to achieve, right. so when i was talking on our joint belief in free expression and the importance of that being a foundational core value of the

company, and then, you know, you kind of think about it simply as almost like a relay race elon works on the technology, dreams up what's next, passes the baton to me, i bring it to market for economic prosperity not only for our company, the but for all of your customers. >> you have the hard part of making that vision into a business and i do wonder if your and elon's vision of a free speech platform can be a viable business >> it being a viable business -- i think you have to go back to kind of like the vibrancy and the health and safety of the platform because if there are half a billion users all over the world showing up multiple times a day in growing periods of time to talk, debate, learn, laugh, i

think x might be one of the funniest places on earth, and if they're going there to share their lives, their vulnerability, their dreams, their opinions, what a vibrant place is that and what a great place for a business model, for let's talk in this context for advertisers, to participate and take advantage of that real-time communication that's going on, and i think you can't separate big events that happen on the platform, whether now we can talk about the world cup or you can talk about the nfl or the nba in real-time, people congregate on twitter because you have to keep up with what's going on it's almost like a literal 24/7 fomo, and a most commercial answer, which i think is the right way to answer your question, is the business model. i will give you the most commercial answer, where would

we think "barbenheimer" got started. two of the biggest movies that have opened and happened since covid and i think in a week or two you will be nearing $2 billion in box office receipts, but not that x is taking credit for that success, but it's where the conversation started >> there's a lot of hate and vitriol and conspiracy theories and those attract a lot of eyeballs too if you're a brand and a business, why would you feel safe advertising >> you know, i think that's an appropriate question and i think some of the headline comments or phrases need to be continually brought to light and debunked, and i'm glad you asked i want to be clear, you know, for almost 11 years my previous experience was at nbc universal, and a large part of my arena was

overseeing all the advertising revenue and partnership for the company, and our number one social partner was twitter twitter was safe and we felt comfortable always being there and -- >> not all brands. a lot of brands have left. >> hang on i'm going. i hear you. >> and by -- i want to take that last ten years and put it in perspective. because by all objective metrics, x is a much healthier and safer platform than it was a year ago since acquisition, we have built brand safety and content moderation tools that have never existed before at this company and we've introduced a new policy to your specific point about hate speech called freedom of speech, not reach so if you're going to post

something that's illegal or against the law, you're gone zero tolerance more importantly, if you are going to post something that is lawful, but it's awful, you get labeled. you get labeled. you get deamplified which means it cannot be shared and it is certainly demon tized, back to your direct point, about brand brand safety so they are protected from the risks of being next to that content. it's also why it's really important to note that once a post is labeled, and it can't be shared, and the user sees that, 30% of the time, they take it down themselves. staggeringly, they take it down. and that reducing that hateful content from being seen, is one

of the best examples how x is committed to encouraging healthy behavior online and today, i can confidently sit in front of you and say that 99.9% of all posted impressions are healthy. >> how do you define healthy is porn healthy? are conspiracy theories healthy? >> it goes back to my point about our success with freedom of speech, not reach and if it's -- if it is lawful, but it's awful, it's extraordinarily difficult for you to see it. >> how many millions of people follow kanye west, lawful but awful, and he's allowed back on? >> you know, kanye, who hasn't rejoined the platform yet, but is planning to do so, will

operate within the very specific policies that we have established, that we're clear on, that everyone who is watching this or listening on spaces can access themselves we have an extraordinary team of people who are overseeing, hands on keyboard, monitoring all day, every day, to make sure that that 99.99% of impressions remain at that number, but we also have to remember what's at the core of free expression. you might not agree with what everyone is saying we want to make it a healthy debate and discourse, but free expression at its core will really, really only survive when someone you don't agree with, says something you don't agree with, and what a great place we would live in if we were able to

return to a healthy, constructive discourse amongst people that we don't agree with. so label certain people or deciding certain people are good or bad is not a universal thing. because there are some people that disagree with us. >> i - >> and our individual opinions that's why we're doubling down on brand safety, why our trust in safety team is so good at what they do. >> but i think there are questions with your boss' on tweets i was talking to a brand that scaled back advertising on x why? they said well, the head of the company sometimes tweets things that we think are in violation of their own safety practices, and in an interview with my colleague david faber, elon said in response to a question about tweeting a conspiracy theory whether that was risking losing advertisers, i don't care. i want to say what i say, and i

lose money so be it. doesn't that make your job impossible >> it definitely does not make my job impossible. i think what it fuels more of an ambition for my job to make sure that everyone, including elon, is entitled to their own opinion. now, we all do things that we reconsider at other times. i think you'll remember when i -- in my early days of meeting elon, i interviewed him at a marketing conference in miami, and we had little bit of a debate of rethinking tweets maybe, i don't know, after 3:00 a.m. in the morning, and - >> does he give you a head's up on the tweets? >> i would never expect him to do so. again, the real-time nature and butte of x, clearing your tweets with someone, is much less effective. but that being said, i want to get back to it's really important that everyone should be allowed to have their own opinion, right, and that's really important

that's for everyone. not just what some people determine is a lane that you should live in as far as brands reacting potentially to some of anyone's tweets, again, why we put the brand safety, you know, tools and capabilities in place, but also, i think what brands are getting more and more reminded of, is the platform is not about a particular person's tweets it's about the vibrancy and the half a billion users who are on the platform and what that represents as opportunities for them i could go back to the great movie opening weekends that we've had and contributed to i can go back to world cup and go through the brand that have stuck with us and the brands coming back. >> are they coming back? >> coca-cola, visa, state farm is a huge partner, they're coming back. the last bunch of weeks,

continued revenue growth, and i think it's a combination of things number one, the reminding of two brands and specifically by me, i'll tell you what i've done the last eight weeks since i've been here, in addition to meeting a lot of the team. for the last eight weeks i've either been in personal, direct, and lived on a lot of planes lately, direct conversations with cmos and ceos, and we cover a lot of ground. i focus on those that have either maybe paused or reduced spending to remind them about the power of the platform and the power of the user base and the economic potential of them partnering with us again again. think about this - >> that is a specific -- >> i'm going to add to it. i think also presence. keep in mind, we're a company that has gone from 8,000 people

and has gone through a very necessary cost discipline exercise - >> how many is it now? >> to about 1500 people. so it makes sense that there would be some type of impact of presence with these people so that's what my job is. that's why i came over with a lot of experience, a lot of relationships, to re-engage and nurture those relationships again. but it's also what's happened in the last week, is a byproduct of me listening to them and listening to them of what was important, and what's most important to re-engage with them, has been the rollout, i believe, on tuesday, we announced the rollout of all of our new safety tools, right, so think about it in terms of brand safety i wrap a security blanket around you my brand, my chief marketing officer, and say your ads will only air next to content that is

appropriate for you of your choice in addition to that, we took it a step further and we exclusively partnered with one of the leaders in this space, integral ad science, ias, and it brought another level of transparency think about our conversations as a three-way deal, x, our partners, our marketing partners, and ias. that brings a level of transparency and protections to them that re-engages them with this community. >> can you get to cash flow positive and when >> it's a really great question and i want to be specific. you know, i've been at the company eight weeks. the operational run rate right now, we're pretty close to break-even. >> close to break-even. >> close to break-even we're pacing well. when you think about the cost discipline that i mentioned -- and i mean incredible cost discipline before i arrived at

the company -- so the last - >> are you hiring? >> i'm to get to that which is the most exciting part so the answer to are we hiring, yes. it's why i came. after eight months and all the people that i've seen, they're so focused on the success of x i get to come in and shift from this cost discipline, to growth, and what does growth mean? growth means hiring. i would add, we have recent momentum in three key areas, right. when we think about our data licensing and api with x is an incredible business, our new subscription business growing, and then what part of my -- what i would say expertise and experience and what i came to do, was to drive advertising at the company. i can say that i am encouraged by the daily meetings and

conversations that i have, research, focus, and considerations from the really blue chip brands across the ecosystem, so i'm thanking them in advance, i'm thanking them for those who have come on since i've joined, and the future is bright. >> it's a good update on the business linda, i have to ask you threads a competitor that launched five days got 100 million users. how big of a threat is that and is zuckerberg really going to fight elon >> oh, goodness. i don't know which part of that question i should take first. >> they're both serious questions. >> they're both serious questions. listen, x is no stranger to competition. many have tried over the years with a company formerly known as twitter, but think about what twitter has pioneered, right hash tags. verified checks. paid verification. really paving the way for what's

next it's why many people have tried. you're right, threads did jump in with a ton of hype and a launch pad from their instagram users, that everyone was predicting this dramatic and continued growth so that's where i land on, is, obviously, you said has dropped off. it's dropped off dramatically. but you can never ever take your eye off any competition, because they'll continue iterating as much as the launch has stalled, we're keeping an eye on everything they are doing. they may be building to what twitter was, okay, and enter rebrand, enter x, and we're focused on what x will be. it's entirely different road map and vision. >> is it a good bang if you're

the head of x physically fights in a cage match against the head of meta? >> you know, i -- it's hard to -- is it really a good thing? >> for what you're trying to do, build this business? >> i think it is a separate excitement from the business you know, i represent all business operations. i don't think i will be on the undercard for the cage match so i think we have to really stay focused on the seriousness of the potential of x and not conflate it with things that may be a humorous back and forth between zuckerberg and musk and we'll see if that cage match really does happen what i can say, is that i've had a front row seat of witnessing that elon is training. i was in san francisco last week, so that is true. he's posted about it and i also know zuckerberg's

history and level of preparedness, so nonetheless, what a great brand sponsorship opportunity and i can't help myself, but what i was happy to see is that there certainly is an agreement to support one of the most important community groups there is that we should all be thankful for and that's veterans so if it does happen, i would have to say, there are some -- there's some really great excitement of terrific beneficiaries of it. >> would never happen with female executives? >> i think we might have an exchange in a different way or different -- >> i agree. >> again, thank you. >> thank you so much for your time really appreciate it, being here at twitter or excuse me x hq in new york city. >> thanks so much. that's our sara eisen. >> markets have been holding in here s&p 4513 we'll get some of the biggest movers after the break

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welcome back with your cnbc news update. at least 36 people have died in wildfires on the hawaiian island of maui according to local officials who say three wildfires are still burning with no word on how much they are contained. one of donald trump's two co-defendants in his classified documents criminal case was not arraigned as planned this morning because he still hasn't secured local counsel. the other co-defendant pleaded not guilty the former president waved his right to appear this morning and also entered a not guilty plea. and a new propublica investigation goes into deep detail about the gifts and luxury travel supreme court

justice clarence thomas reportedly received over the last three decades gifts including sky box seats at sporting events, flights on private planes and stays at luxury resorts, justice thomas has not replied to nbc's request for comment. back to you. >> thank you let's give you a check on the markets. we're up after what has been a difficult week, particularly for some of the mega cap tech companies. different story today. let's bring in morgan ike santon what is his take on this bounce after rough trading if you were long the nasdaq or the magnificent 7. >> for sure. i think, david, initially just a burst of relief off of roughly as expected cpi number which may be modest dovish imcomplication which was the absence of a potential negative clearly we were clinched up for something not as good. that sent like the volatility index down a point and you have

a sense they were relaxing a little bit in the moment the context, though, to me is pretty important this is the sixth day in a row that we've crossed the 4500 line on the s&p 500 we've kind of been stymied here for a while, churning around, before the july 12th cpi report. we were at 4472. that's kind of where we were before this one. we're trying to run the same playbook to celebrate the fact that disinflation with decent growth is i think the baseline assumption for most investors right now. the drop in yield and a little bit of a maybe the fed is going to take a meeting off and we don't have to worry about anything until november means some of the big cap nasdaq stocks can bounce off of these pullback levels. nasdaq, apple, nvidia, all had kind of quick 10% pullbacks off of their highs. >> yeah. >> beyond that it's hard to know if this carries us forward in any meaningful way now that we have earnings through. >> as we say we are through

earnings what does potentially then carry us, if not focus on that >> i think it's about, you know, are we in a steady state, you know, 2 to 3% growth mode in gdp. everything that feeds into that, retail earnings next week is probably going to be part of that fed speak is going to be out there and we're going to get messages from jackson hole i think that we can take some comfort in the fact that the fed thinks rates are in the zone of where they need to be. we're not going to worry about big moves. that's really different from last year. oil prices ticking higher, people saying they can break out. natural gas, inflation expectations ticking up on a longer term basis means it's a little more of a two-way trade to figure out which way inflation goes from here that's not today's or tomorrow's business but the stuff that lurks out there that requires confirmation the soft landing is presumed but needs confirmation. >> retail sales, some of the bank of america credit card data today looks pretty hot for july,

online electronics or groceries, a lot of positive spin on walmart going into tuesday. >> and walmart stocks been acting well. seems like lower income households, doing more than their part it does probably revive that, maybe it's the no landing type of argument, but at the same time, i mean, claims ticking up for technical reasons you are seeing the economy slow to the point where housing is not racing ahead it seems as if you can make the two-sided argument the market happy to be in the middle of it for now, but the fact that we didn't reward a good earnings beat season in a dramatic way, i think tells you that the market got here already that's what 20% up year to date in july was about in the s&p that's what 30% off the october low was basically telling us already. >> mike, thank you mike santoli up next, if you are trying to rent an apartment in manhattan, somehow it's getting more expensive we're going it find out why and

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housing inflation accounting for more than 90% of the increase in this morning's all items cpi numbers as rents in manhattan hit fresh new highs. robert frank joins us with details on that. >> good morning. the average rent for a manhattan apartment is $5,588. that is a brand-new record median rents also hit a new record along with price per square foot. every measure hitting an all-time record. far and away the most expensive market in the country. while the rest of the u.s. is seeing rents flatten or decline, manhattan has seen records in four of the past five months the average rent is now 30% higher than pre-pandemic this despite the fact that new york's population is smaller than 2019 and offices are still only half full add to the mystery of high rents is that inventory actually rose by 11% over last year.

normally when supply grows, prices also fall that did not happen. there is one hopeful sign, though, for renters and maybe for the fed. new leases fell 6% over last year while prices keep rising, there are signs renters have hit their limits in terms of affordability and they're going elsewhere. august is usually the peak rental month with back to school so, brokers say to expect another month of records in august, maybe in the fall we could get a flattening out or even decline they've been saying this for six months and it hasn't happened. >> robert, i want answer from you then this is the mystery. you said the population has gone down, the inventory has gone up. what explains it >> there are several explanations i've heard, none of which are very convincing. one is airbnb has taken regular units off markets and rent stabilization has given

landlords an incentive to keep old apartments empty rather than repu renovate and rent them, and those on the sidelines camping out without new rentals. we're seeing it more so in new york city. a lower population, offices only half full and yet rents keep rising it's a very perplexing problem here in new york >> others argue it was the exodus from manhattan and then the return that gave landlords leverage and this bullwhip effect perform opposite of what's happening in miami-dade and austin where you see rent relief because the migration trend has reversed. >> and a lot of people say landlords took advantage of that reinflow when people came back into the city to jack up rents and that's yet to correct. that is absolutely another factor. >> one thing i would point out, robert, is people are looking at cpi this morning and comparing

it to zillow, which is an advanced look at new rents, observed rents, falling quite markedly and whether that's reflected in cpi in the next 12 months. >> again new york has so many unique dynamics it is the largest housing market right now they're saying expect at least another one month of increases and maybe we'll start to come down in the fall >> oh, man kids are never leaving they're never leaving. >> do you want them to go? >> eventually, yeah. they're going to be living with me forever >> they'll be in a new sitcom for nbc. >> we'll need it. >> thanks, robert. robert frank. still to come. tapestry the biggest laggard on the s&p today. the home oveacf rse and jimmy choo details in two a million differes i should be trading. look!

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get way more into what your into when you stream on the xfinity 10g network. we mentioned tapestry capri earlier. capri up 50% premarket, settling back as we talked about consolidation in fashion we'll talk to the ceo in the next hour. >> yeah. listen, when you write these

things up and writing a significant premium, 50 bucks a share, you hope your stock stays in there a number of challenges taking on a lot of debt over $8 billion, they say they'll get leverage below 2 1/2 times in a couple of years. and the turn-around of the michael kors brand turning around michael kors will continue to be key for them. you can see there are some new data it's not a stock deal. it's all cash. it's not arbitrage going on. they say maybe it's time not to take that risk "squawk on the street" will be back after this.

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. good thursday morning. i'm carl quintanilla with mike santoli. coach owner tapestry buying michael kors and capri holdings in an $8.5 billion mega deal tapestry ceo will join us. white house unveiling a ban on u.s. investment in certain chinese tech companies deputy secretary treasury fills us in. twilio shares up big with guidance boost ceo will join us