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 with those

results at the bottom of the hour. markets off their highs of the morning. we did have a little relief trade higher the s&p was up more than 1.1% at the highs, right back to that 4500 level that's been sticky the dow is closer to its highs of the month, actually and the nasdaq outperforming a little bit today as bond yields remain fairly tame, carl. >> got the ten-year back to $3.95 for a moment the vix back below 15 for a moment signs we had gotten used to in july we relaxed a little. the weekly claims is digestible but there was an uptick. soft landing premise remains intact we'll see if the markets get tested on that assumption at this point cooler than expected inflation driving markets after that cpi report ex-food and energy at lowest

levels since october of 2021 but the probability of another rate hike in september down to 10%. is the fed on the cusp of executing this soft landing many thought impossible joining us pimco managing director josh schneider. new data anything change about it the bond market seems forgiving of it. >> i think we're looking through to the fact that the market as well as pimco expects, the core cpi will be in the 3% to 3.5% range as we approach year end. is that meaningful yes. the fed isn't necessarily going to achieve its target rate we're not necessarily going to have the trajectory to make the fed comfortable to pivot to dovish that's clearly with the probabilities that you highlighted here puts the lessening of rate hikes but it doesn't necessarily suggest the fed is going to put on the brakes and pivot drastically to a dovish response. one thing we're thinking about at pimco is the fact that

inflation, while you're seeing healthy returns to inflation, lower inflation in terms of used car prices, shelter, things like that, on the flip side one thing that is worrisome is wages and wage pressures that is not subsiding. we see that as a potential source of increase inflationary pressures as we get into 2024. so, the friction and, perhaps, sources of volatility as we get later into this year and 2024 is that reconciliation of what are the components of inflation, how do wage pressures and specifically the wage negotiations we've seen over the past few weeks get translated into inflationary expectations going forward? is that enough to give a longer pause to the fed at this point in time as opposed to the rate cuts we are forecasting in later 2024 and 2025 that the market foresees that tension is going to be foreseeable. we might see this more favorable higher yield environment, specifically the front of the yield curve making that yield curve much more attractive. >> it's interesting.

clearly, the fed's not going to declare victory, say that all is clear. but they seem to be messaging they want sort of time to do its work and we're going to keep rates up here, maybe we have to snug them up a little more from here markets seem like they've been okay with that type of idea. also because some fed officials mentioning there is a risk of overtightening they don't want to move too quickly in either direction. it's interesting you say that we can have these short-term yields at elevated levels for a while i've heard people say, listen, you have reinvestment risk if you lock in on the short end and all of a sudden we'll be seeing the fed cut rates soon you don't think that's an issue? >> you make two great points one, the fed continues to have collaborative conversation what i mean is you're trying to find the opportunity and the reality is the trajectory for inflation and other good data may not come as quickly as people expect. that in and of itself is quite telling. when you layer on that corporate

earnings, profitability, it creates an environment where there could be uncertainty than the markets are pricing in so volatility is important. the second thing that's important is while we do take certain degree of favoritism from pimco from higher yields, i do think the opportunity set is one where you create optionality, understand liquidity do remain tight relatively and might get tighter as we see excess reserves removed from the system and the opportunity set from yields, not trying to be too myopic in determining where the fed is going to go, probably lends itself to a more pensive fed. >> march doesn't seem reasonable >> there's a lot of data between now and then if you're a data-dependent fed you take time to have the conversations, articulate to the market that you're considering

the data but don't necessarily have to react to the data. as we approach year end you'll see weakness in the economy that might become another factor but not necessarily elicit a dovish respond to the fed at that point in time. >> if waejs are top of mind for you, how do you answer those that say work week is getting cut, zip recruiters saying we're getting less for postings, things like that. >> there's positive inertia. i think from the longer term perspective, you have wage pressures substantive in these labor negotiations 20%, 30% wage contract increases, yet those haven't been factored in we do see it and we'll begin to see it in reality and real time as we get into 2024. that's the tension people are playing between the market and

the soft landing crowd that we see. it's still a great opportunity it's a great opportunity to create differentiation but not necessarily an environment where you expect the fed be reliant upon the fed that has traditionally a dovish sentiment. this time around may not necessarily be fully encompassed in that. >> that being the case, does that mean the ten-year back under 4% is in the wrong spot? there was a lot of talk last week this could break out above the highs. if you look at the charts, it looks like the upper end the range held if you have positive real yields, it seems like in aggregate the market says, that's going to do my job to hedge my portfolio again. >> that's a great point. don't be too myopic. there's a great point -- pimco did look day to day in terms of the moves. if you take a longer view, we had recent supply announcements and that takes time to digest. it takes time for people to react to new supply coming and lends itself to an environment of higher yield curves, steeper

yield curves, so the appetite for yield at 4% is quite attractive, especially where we've come from, but you might find that less attractive in the future, especially things geared towards the longer term interest rate expectations, actually end up being higher than people expect this seems a fair value in terms of where we are right now in terms of yield again, the relative sense of where we are in yields makes it that much more attractive from an income point of view. >> is meaningful relief in shelter fansciful, overdone by the doves? >> it's a little overdone by the doves. i think you also have to look at it as a structural impediment. that will take its time to work through the system you have a natural tension that through the epidemic-inspired inflationary situation, we are moving away from those impulses and moving to other impulses bigger term, take a longer view. the shelter number has a little

residency because of the fact there is a supply/demand >> great to talk to you. let's turn to china this morning. the white house is out with executive order restricting u.s. investment in select chinese tech sectors the country's foreign affairs ministry firing back now, calling the measures, quote, blatant economic coercion and technological bullying joining us for a closer look at the order, deputy treasury secretary secretary. push and pull trying to implement the restrictions and yet keep the lines of communication open and trying to foster some trust. how is that working? >> i think it's working well part of the reason we want to keep the lines of communication open, we talked to china about protecting our national security we both telegraphed the moves the president made yesterday as well as other actions to not only the chinese but also to americans and our counterparts as well because we want to be

clear that we're doing these things to protect our national security not in any way to inhiblt they're ability to grow the economy. >> does it make trips like blinken and the treasury secretary's to china recently more difficult in the future >> no. i think this shows why it's important for us to have those dialogues so we can be clear with the chinese what we were doing here and to protect our national security. if you step back for a moment, you'll see the actions the president took yesterday were consistent with actions we've taken in terms of export controls what we did was we took narrow set of actions that ultimately prohibit certain transactions by financial institutions that cut alongside know how that allow china to build things like semiconductors that they're unable to get from u.s. firms. the actions were narrowly scoped, transparent. now we've put out information asking a set have questions to

stakeholders in order to better understand how to create these tools for national security and allows for ongoing economic flows. i think the actions demonstrate the importance of continued dialogue and our importance to tell the chinese what we're doing and why to do it and assure the world we're going to act in a manner that was responsible and reasonable in order to protect our national security >> the idea you want to restrict u.s. investment firms from providing capital to certain areas of chinese technology industry is, in your mind, it's not so much that maybe they won't be able to get the capital elsewhere but it could have been a way around the export controls and the restrictions on using u.s. technology? >> it's ultimately not only about the capital it's about the capital and the know how, as you know because we talked to these firms. one thing private equity and venture capital equity firms do

in terms of providing money, and the firms in their network we know that countries like china lack that know how and they're looking to get it. part of what we're trying to prohibit is not necessarily capital flow into china but expertise flowing to them that would allow them to build things like semiconductors that are preventing them from getting ahold of export controls. >> finally on cpi todayings, there's been some applause for the in line print. some are worried about a reacceleration some are talking about the degree to which restaurant chains, for example, who want to build more units are getting crowded out by the demand for labor and materials that's going on because of the c.h.i.p.s. act and the infrastructure initiatives. how do you think about that, stepping on the brakes and the gas at the same time >> i think the most important thing is trends matter if we were talking a year ago, we would have seen the number at 9% for headline inflation and now it's down significantly from

there. if you look at the last three months, the data would show we're about 1.9% it's because of the work the fed has done and the administration has done to improve supply chains i would say what the president is doing with investment america agenda is making sure we expend supply in the economy to make sure we can bring down inflation, which we're seeing happen, while also growing the economy and continuing to create jobs if we do those well, i feel good about the u.s. economy, especially when you look at countries around the world you look at where china's economy is and europe is >> not a lot of arguments on that that is for sure at least in the developed world. wally, appreciate the guidance on china and inflation today see you next time. >> thank you take care. after the break, the ceo of tapestry is going to join us the owner of fashion brands like coach and kate spade acquiring

holdings in this $8.5 billion deal >> we'll be right back ♪ opportunity is using data to create a competitive advantage. ♪ it's raising capital to help 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. this is cynthia suarez, cfo of go-go foodco., an online food delivery service. business was steady, until... gogo-foodco. go check it out. whaatt?! overnight, users tripled. which meant hiring 20 new employees - and buying 20 new laptops. so she used her american express business card, which gives her more membership rewards points on her business purchases. somebody ordered some laptops?

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the big m&a news, cappestry will acquire capry holdings. sara joins us with a cnbc exclusive. >> good morning, mike.

good morning, the ceo of tapestry thanks for being on. >> it's great to be here, sara thanks for having me >> this is a big deal. i want to ask you about it it's a big deal. it didn't get rumored. it caught a lot of people by surprise how long has this been in the works. >> we are so excited today to be announcing that we're staeping a powerful global house of iconic luxury and fashion brands. our brands, kate spade, coach, stewart weisman, and why we're excited about bringing these six brands together, this is a compelling financial opportunity first but also an excellent strategic fit for our business it's immediately accretive and we see significant runway to build on this foundation >> so, my question is why now? did capri get too cheap to pass

up >> we've been working on this for a while. over the last three years we have been transforming our business and we've invested behind our brands and brand building. we've increased our marketing investments. we built a digital platform to drive consumer engagement. that has driven consistently over the last few years, consistent results and sustainable results. we feel that that puts us in a position of strength as we talked about how we build on that and our growth plans going forward, this is an incredible platform. not only it's where the market is moving and how consumers are moving so it helps us engage with consumers but also it's scaleable. it's a platform we can leverage across additional brands in our portfolio. we've been thinking about this for a long time. as we thought about it, we wanted to make sure that we looked at opportunities to expand our portfolio, but it had

to be accretive to our organic plan as i said, we've been working on it for a while it was very clear that capri represented a strategic fit for our portfolio. it builds in this resilient category we play, a $200 billion category for accessories, footwear and apparel, luxury accessories and apparel with complimentary brands so that's important. it deepens our access to the luxury consumer which is a luxury consumer, as you know it gives us geographic diversification and category diversification through complimentary product offerings that capri brings. we're excited about the opportunities we see we've been working on it for a while and it's a great fit. >> i want to ask you about those different strategies first on the deal and some of the news you made today in the investor call. you said you expected to close

some time in calendar 2024, which is a bit vague do you have regulatory hurdle concerns around this deal? >> we expect to go through the normal closing conditions that are required, including regulatory we think that the timeline that we have laid out reflects just what we see in the market today. we think that's a realistic timeline to close in >> are there any antitrust concerns here? we've seen administration that's been pretty hostile to industry consolidation. >> we're confident that this deal brings tremendous value to consumers as well as to our brands these brands, as i said, are complimentary. we're gaining access to parts of the market where we haven't had access, the higher end luxury parts of the market, so we're broadening our access there. as i said, the brands are quite complimentary. they're distinctive in the market with distinctive customer segments we're confident this is a great

deal, not only for tapestry, for our shareholders but all of our stakeholders >> yeah. and not an anticompetitive deal. what about your confidence in reducing the leverage ratio because you're taking on a lot of debt. >> yeah, again, we're beginning this transaction from a position of strength. as we build leverage to purchase the capri brand, we'll be under four times leveraged these two brands, these two companies are competitively profitable we see that coming down to under two and a half times leverage in just two years it's rapid deleverage based on the profitability and cash generation of this powerful model. >> it's interesting that, you know, you keep saying you're coming from a period of strength but it is an opportunity, this highlights the opportunity to look back on the companies, both of them, performance and stock prices, which have done okay

recently well off the highs that we saw, i don't know, ten years ago when handbags were booming. capri was up almost $100 stock what's happened to the industry and to some of these brands? >> well, we've learned a lot over even the last few years and certainly with our acquisitions as well and the power of brands in this market can't be overstated brands matter. these are some of the most iconic brands in the industry. and as we've gone through our transformation, our focus is really on clarifying that brand positioning and understanding our target consumer. we talked about it all the time, getting closer to the consumers. what consumers need today and making sure your brand stays relevant, it's so important. consumers are moving faster and faster what we've built is a data platform leveraging our direct-to-consumer model and digital capabilities to reach consumers where they are, to understand them better, that reflects in the products that we're putting out into the

market so, as we acquire new brands and we're excited to bring the capri brand to our portfolio, they add such dimension and complimentary to our portfolio, we can also leverage this powerful platform we've built in our direct-to-consumer model to accelerate the growth in those brands. >> that was one of my questions is what your channel strategy is now you have a strong foothold between all the brands in outlet and wholesale where a lot of the growth in the industry has been pivoting the other way, direct-to-consumer. >> we're very proud proud of our direct-to-consumer model it gives us information right away it allows us to be fast. we see an opportunity to bring more of that to the new brands, to the capri brands and increase the direct-to-consumer penetration over time. we think that's one of the really compelling aspects of this combination >> a lot of the -- a lot of the commentators say, oh, you know, america doesn't have an lvmh or

richemont and this is what you're trying to do. you're trying to get a foot hold into the luxury, you're getting versace and jimmy choo but it's hard to compare with lvmhs, they're in a different stratosphere and their results have been incredible because of it. >> we're building something unique and differentiated at tapestry i'll share that vision with you, but it starts, as i said, with iconic brands, with heritage and design and craftsmanship, and all six of these brands really have that. it's combining that with this modern consumer engagement platform that delivers more innovation, more connectivity and morrell advance for consumers. we think of that as luxury at its best that's really the vision for this combination and what we're building at tapestry i'd be remiss if i didn't mention culture.

we also believe and we can be the best home for talent in our industry this combination gives us a tremendous opportunity to ignite the passion of 33,000 associates all over the world to drive our results that gives me a lot of confidence in our future >> yeah, i mean, the culture certainly is a question and difficulty of integration. you have six distinct brands here and two parent companies. so, i do wonder how big of a challenge that is and whose corporate culture you adopt. >> well, we're excited about bringing these brands into our portfolio. and as i said, our focus is on brand building these brands need to and will retain their distinctiveness in the market that is so important that they have and they stay true to their unique dna and then from a culture standpoint, we actually have a lot of synergies in our culture. in other words, the capri culture and our culture value creativity and inclusivinclusivy

as we go to market, we're going to lean into those things in our culture that are common, that really can power our growth. there's a -- behind driving these brands and we're going to continue to harness that passion again, the 33,000 associates around the world to drive our business forward >> joanne, what about kors in particular, what happened there? how has it fallen from grace is it changing its style, fashion bags have fallen off and what are you going to do >> we're data-led. as we entered into this transaction and this opportunity, we have a lot of research and we talk to a lot of consumers. it confirms what we knew michael kors is a strong brand it's well positioned in an attractive market and market segments they have a clear strategy for

growth they want to grow through accessories and digital and direct-to-consumer, grow in asia, grow in men's. and being on our platform will help us accelerate that growth we think this direct-to-consumer piece is really important. it's a stated strategy and tapestry can help accelerate that strategy and leveraging th capabilities we developed. >> what does it say about the overall consumer spending, both in the u.s. and internationally where you have a big presence? things were rough during covid, you have this big boom what does this timing in deal say about what we're seeing going forward, what you're seeing >> our focus is on the long term that's why we're doing this deal today is because we see the long-term potential. you know, we like to say at tapestry, we're powering iconic

brands to move at the speed of the consumer and i think over the last three years, and i know we talked about it on the show before, over the last three years we've seen the consumer's shopping habits, things they value change dramatically, all the way through covid and the pressures of recession, different covid lockdowns around the world and the ability for brands to really understand what is going on with the consumer, how to reach them and how to create that meaningful and deeper emotional engagement with that consumer that's how brands win. and those are the capabilities we've been building at tapestry. we have a lot more to do but we have a lot more runway ahead. >> joanne, big day for you thank you so much for carving out time to talk to our audience on cnbc. thank you. >> thanks. as always, i appreciate it thank you. >> same here joanne, ceo of tapestry. after that $8.5 billion deal. >> thanks. still to come, the ceo of

twilio is joining us on the company's beat and raise stock is up more than 20% this year off the session highs. we have once again fallen below 4500 ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪

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watch novonortis, extending supply restrictions for lower strength doses of the weight loss drugs shares are down a bit. >> we're two hours into trading. let's go post to post with bob pisani for a look at what's moving. >> we're up 30 points on the s&p. we were up almost 60 points. a little more than an hour ago, mike they are selling into things they are selling largely into tech tech is still up today we had a big, big open let's take a look at some of the salesforce, some of the software companies out there.

it's 211 they sold right into it. it's still up. this was 234, 235 in the middle of july. now it's 207 and you can see this with other -- service now, another good example you look at this and say, oh, my gosh, it's up 1.6% that's great here. but this was 565 an hour ago big rally. they're selling into it essentially this was 600, $605 a month ago. now $559 they're sort of selling into these rallies. we keep talking about why the market keeps holding up, less than 3% below the high there's other things that are moving these energy stocks are amazing. i keep talking about these refiners, like phillips 66, marathon petroleum, another new high and oil's been helping. right across the board, nat gas has been moving up

these stocks are on fire not only the companies that are out there in the energy group but oil service names, for example. it's not just the refiners oil service names have also been tremendously strong. also strong is, of course, go out and rent a hotel room recently another new high on hilton great moves up it's just been all up the last month. the numbers are still pretty strong marriott's having a good day that trade is over on the nasdaq there are pockets of strength out there. health care has been strong recently pharma has been strong as well, mike the important thing is the reason we're not seeing a bigger decline in the s&p 500 is a modest rotation that's going on. you see it in energy, you see it in health care, you see it in some pockets of consumer discretionary. mike, back to you. >> yep two to one up to down stock. still positive breadth but index is off the highs thank you. coming up after the break, the ceo of twilio is with us on

the company's recent beat. continuing to watch the energy sector. xop up for five straight weekly gains. you can probably attest to what me de tt hasoninha ti we're back in two. ♪ ) ( sfx: people cheering ) ( sfx: stock exchange bell ringing ) ( ♪♪ ) ( ♪♪ ) ( sfx: people celebrating ) ( ♪♪ ) ( sfx: people celebrating ) ( sfx: stock exchange bell ringing ) ah, these bills are crazy. she

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check out shares of app lovin, posting strong second quarter and guidance thanks to a.i.-based ad engine stock up 20% today

this was $115 stock in late 2021, went down to 9, now up this year. >> a whole universe of stocks -- >> yeah. these charts are very important right now. >> take a look at another earnings mover, twilio beat on top and bottom line. bullish commentary around how the company is using a.i guidance was mixed, though investors not really seeming to mind shares continue to move higher, now up 25 for the year joining us in a cnbc exclusive is twilio ceo jeff lawson. welcome back good to talk to you. >> thanks for having me back >> a couple of examples of companies where at least in the current quarter, the guidance was a little split between revenue and eps. can you talk about the dynamics there? >> absolutely. first of all, started off the last 12 months and told investors, for the last 15 years of the company we're focused on growth and now we're focused on more efficient growth because that's what the market requires. we took substantive action and as a result have started showing

impressive growth in our nongap operating margin and also the splitter on our free cash flow generation we're very much focused on that efficiency and showing our scale business we have, $4 billion revenue business is also able to generate a good amount of profit and a good amount of free cash flow i think we've proven that's possible as we think about the macro economy, there are certain factors that are headwinds, others are tailwinds this management team is focused on the applicability of our product and putting it out there and doing it at scale and at scale with profit as well. >> would you argue there are more turns to be made in efficiency or operating expense or are you now waiting for prior moves on that front to bear fruit? >> what's great about our usage base model is usage can pick up quickly. it's been a headwind from the last, you know, 12 months as the economy cooled down a bit. as the economy heats up again, we see our ability to add revenue, gross profit dollars

with very little investment going in and that means we can drop a lot of profit down to the bottom line. so, i think to go forward for us is driven by growth, a number of factors that can be very efficient growth that turns into more profit. >> at this point, jeff, you know, if you look at projections for sales growth for you guys next year, it's in the 10% range. is that something that you should -- we should think about as the long-term run rate? how are the underlying businesses growing, how does that net out for the company >> we gave a medium set of targets last year. in that framework we said 15 to 25% annual growth. we believe those targets are achievable that's what we're focused on but there is short-term headwind in terms of macro, but as we refigured the company for more profitability and into two business units we see time as we

adjust to that but our medium guidance stands. >> it's good to touch base with you. look forward to next time. >> thank you very much. is disney's latest quarter proof that bob iger's turn-around plan is starting to keta hold? that's today's "techcheck" after the break.

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only from nature's bounty. disney definitely in focus with today's "techcheck" with a

crackdown on password sharings julia boorstin has more on the quarter. hey, julia >> well, carl, bob iger laid out a new plan to make streaming a key growth driver for disney and part of that streaming plan includes a new focus on ad-supported streaming iger saying disney plus's adds has 3.3 million subscribers. he also price hiked the ads-free version of hulu/disney plus to drive consumers to get the dual version. disney is raising prices to $14 from $11 and hulu to $18 from $15. while ad-supported disney plus and hulu plus, those prices will stay unchanged he's talking about cracking down on password sharing as yet another way to make money from streaming. iger saying they have the tools in place and a plan to drive out monetization of account sharing

next year. he acknowledged he's taking a page from netflix and praised netflix's strategy. >> our streaming business is still actually very young. in fact, it's not even four years old. it launched in november of 2019. and we love to have the margins netflix has. they accomplished those margins over substantially longer period of time and they've done so because they figured out how to really carefully balance their investment in programming with their pricing strategy >> as iger thinks about balancing investment with pricing, bernstein writing they should hit break-even quickly once this second set of price increases hits the streaming option carl >> julia, the other stocks in the sector are also up along with disney. perhaps there's this perception

that you raise the pricing umbrella for streaming services around the industry. everyone is rethinking the right level of investment. and we have the strikes ongoing, which obviously has every company trying to figure out exactly how much new content they need. it might be a real world experiment in figuring out how subscriber flows behave when you're putting less stuff up there. >> this is going to be an experiment as they figure out how carefully and slowly they can tritate, when they deliver new content on the streaming services there hasn't just been a sea change in how every media giant thinks about streaming the focus is on profitability. we've heard a ton about the cost-cutting piece of this iger announced they were further ahead in terms of cost-cutting that's been a huge priority of disney's you have the cost-cutting piece, the pricing piece and then the in-between pieces, how much and which types of content they're

going to need to be spending on to make sure they attract and retain subscribers one thing we haven't talked about today is overall streaming for disney plus declined if you look at the core disney plus, you exclude india hot starts, who much less pro profitable disney is making sure subscribers are profitable but if disney is raising prices, that means everyone else has more flexibility as well. >> hard to get past those rights two other things, julia. one is iger's comments about respecting creatives and how that changed regarding the tone with unions and then the investor day there's been some notes arguing there's not a lot of enthusiasm because there's not a cfo at the moment and people aren't sure how granular iger can get next month. >> it's weird to have a disney call without kristina mccarthy,

long-time cfo. your first question about the strikes. there were comments iger made in his interview with david faber last month about his frustration around the lack of progress of negotiations with the strikes. iger's comments were really flagged as concerning to a lot of people here in hollywood and i think as a result he drew a lot of criticism on the call yesterday he was trying to walk back, saying he respects creatives, he's focused on finding a solution and i think he was trying to sound a little more conciliatory yesterday. that was the message i heard so, it's a crazy time here in the industry but i think it will be interesting to see how the work stoppages, both of actors and writers have long-term implications on the whole industry particularly on the broadcast business, which is something disney is obviously concerned about. >> well, we got a reschedule date on awards maybe there's hope something gets done even after the new year we'll see, julia thank you.

big quarter out of disney. we'll go back to new york city headquarters for a breakdown of sara'sntvi ierew with linda yaccarino so stay with us.

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linda yaccarino, ceo of x, sitting down with sara eisen in her first interview as ceo sara is back with us from

midtown with the highlights. what jumped out at you >> what surprised me most from linda yaccarino, the news on the business improvement because we all read the articles about how advertising has fallen off a cliff, yaccarino this morning told me i'm going to read it exactly, so i get it right, the operational run rate we're pretty close to break even in other words, the company is coming back and almost a cash flow positive. pretty close to breaking even and said they're hiring after, remember, thousands of layoffs when musk took over twitter back last fall, cut the amount of employees from 8,000 to now over 1,000 right now. and she said she's winning business back. i did press yaccarino on the brand concern from companies and marketers about safety, about hate speech and about her boss elon musk and not knowing what

tweets he'll put out. >> i think what brands are getting more and more reminded of is the platform is not abou 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 -- that was all new, naming some of the brands that have came back that have left after the acquisition by elon musk now as far as the relationship between musk and yaccarino, who is the ceo, i asked her about how they share control and whether she has autonomy

here's how she characterized it. >> elon focuses on product design he leads a team of extraordinary engineers and focuses on new technology think about it elon is working on the future, and i'm responsible for the rest running the company. from partnerships, legal, sales, finance. >> you'ven to my in doing that >> i have autonomy in doing that i have a partner in elon it's been eight supportive weeks. >> she does not get head's up on his tweets or expect to. on threads we talked about the competition from meta, talked about how it gained 100 million users in five days and they're building what twitter use to be. we're building something else. that was an interesting comment. does speak to her and elon's long-term vision here of what x is, the everything app

she confirmed, carl and mike, that payments and bankinging is a part of that and more than just the global town square which is the other thing that they're trying to make twitter now x. and guys, you were wondering, she confirmed that elon musk has been training for weeks for the fight with mark zuckerberg, but did not confirm whether that was indeed definitively happening. thought it would be a good marketing -- brand sponsorship opportunity if it did. >> i would not expect her to break that news. sara, thanks. coming up after the break, a look at the technical brkdeaown in the big tech names when we're back in a moment y managers. (other money manager) different how? aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our client's portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money, only when your clients make more money?

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and grow. constant contact. helping the small stand tall. a lot of attention paid to some of the technical breakdowns that we're seeing this week among big cap tech. >> we've seen breaks in the upside momentum, and at least if nothing else, tests of the longer term trend. microsoft, which has pulled back just about to its 100 day average, if you went back a little bit farther when it was in an uptrend prior to its peak, it had, you know, found a little bit of its footing around that level, so we'll see if that's something that is going to hold here certainly 10%, 11% off its highs

shows you that a.i. theme really did work through these stocks and now maybe coming off just a little bit take a look at nvidia. faster moving stock, one that had a much more steep surge to the upside over the course of this year has clicked below a 50-day average, a much shorter term signal right there and then apple, that one, obviously, gets above $3 trillion in market cap. pretty severe break here you did cross through the 50-day, but it's like the 100-day average. nothing magic about the levels kind of geithner guide posts to wh -- kind of guide posts to what you've seen. i would argue when you see these three stocks, double-digit declines from their highs and the s&p has had a 3% pullback, it's not terrible, but the choreography has to be perfect in the rest of the market to sustain continued losses. >> this was the thesis, maybe other areas of the market, energy, for example, could pull

more weight. tomorrow, ppi will give us a little more granularity in what we think cpi is going to do. >> it should be more of a leading indicator. right now there's comfort on the inflation front in a sense you have to watch oil and everything else. it's more about how growth holds up given where the fed will hold rates for a while. >> important day, even though it's a summer friday dom in for the judge let's get to the half. >> thank you very much, carl mike santoli welcome to the halftime report i'm in for scott wapner this afternoon. front and center your next move with your money following today's cpi print. did today's report give fresh oxygen to the bulls? we have weekly jobless claims as well our committee is standing by to weigh in and tackle that question joining us for the hour on set at post nine, josh brown, jenny harrington, and jim lebenthal. let's get a check on the markets at noon eastern time we are seeing green on the screen across the board.