>> thursday. >> oh. that's not too bad final check on the markets we are now in the red. we had been positive we're down just a little bit >> i can't find any -- i mean tom lee even was talking about choppy markets >> what song -- you must know a beatles song you ever listen on sirius xm, what's your channel? >> i listen to podcasts. really >> make sure you join us tomorrow and thursday. we're going to sing something. "yesterday"? join us tomorrow "squawk on the street," not yesterday, it's next ♪ good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at post nine of the new york stock exchange futures did lose some ground here as we set up for an important week july quarter earnings, retail sales, fed minutes, bond yields perked up a bit as b of a upgrades the u.s. consumer today. our road map begins with a rate

picture. goldman-sachs expects the fed to begin easing in q2 of next year. also ahead, we're going to talk about what is next for the tech sector. this is in the midst of what's been a rough august at least so far. we're down 7% month to date. and letter x surging company rejects an unsolicited takeover offer from its rival, cleveland cliff. let's get some other news, though, as well, as we start the show paypal has a new ceo >> whoa. >> yeah. alex, who currently runs the small business and self-employed group for intuit, is going to take over from paypal's long-time ceo dan shulman on september 27th according to members of the board >> a little earlier than expected >> they conducted the search for paypal's new ceo shulman will remain a paypal director until next may.

chriss being hired was a result of the process where the board interviewed nine ceos. they reduced that pool to four candidates and then they chose mr. chriss members of the board selection committee tell me he impressed them with leading a division that contributes to half of intuit's revenue he did oversee mail chimp. it's owned now by intuit, run by him. they believe his focus on small and medium-sized business at intuit will position paypal to fulfill its growth ambitions shareholde shareholders in the company, they haven't had a lot to cheer about for some time. the members of the board search committee tell me they met with roughly 20 investors as they conducted the search for paypal's new ceo that dud include elliott management as well, jesse cohen,

who runs activision there. i'm told that firm had no role in the actual search and guys, you know, we all can see the mountain that paypal climbed. i think it hit a $350 billion market value shulman has been under pressure for some time and earlier this year did announce his intent to step down. he's a young guy, 46, not as current ceo, though does run about a 7,000-person division at intuit but will taking over a company with some almost 30,000 employees. >> this guy, i happen to like intuit they've come on the show the quickbooks division is a remarkable division for small business look, this could be a coup i think paypal needs to have better relationship with merchants because that's where they lose out, including to apple. i think that paypal has stumbled we've been waiting carl, when you announce that a ceo is a lame duck for a year, i

don't think that's such a hot idea right? wow. you know what? let's let a -- >> yeah. i'm told they began the search in february, so it wasn't long after shulman said, "i'm out of here" at the end of the year speaking to a number of members of the search committee, they seem quite happy with their pick, not at all concerned by the fact that he has not been a ceo. in some ways, embracing the idea that this is a guy who has a lot of experience in terms of product spacing, will be aggressive, though, certainly not going after some big deal such as a pinterest but aggressive both on acquisitions to try to bring about more change more quickly at paypal. >> the growth rate there decelerated dramatically, which is why you see that decline, and really, carl, it was all by surprise each quarter was another bad quarter, and i was -- had paypal on regularly, and each time, i got it wrong i said, geez, i thought they

would turn it. this new guy, i only know him as being part of the winning team of a very winning company, intuit i was going to see when i get out to san francisco >> intuit, as we know, has become enormous -- you put one versus the other, and you get a sense as to why you might be encouraged, given what intuit's been able to do, particularly when it comes to -- >> terrific. i just -- i admire intuit, and anybody -- i owned a couple small businesses, and you don't need accountants with intuit with quickbooks and saves you a tremendous amount of money i think that the problem with paypal is that it's just become a commodity. there's a lot of these companies that do what they do and what happened if you look at chat of paypal with mastercard or visa, you see that we turned against fintech and went with old-fashioned, and i think that this could be a good move. >> even the last quarter, the margins were under more pressure

than anticipated >> it was a terrible quarter >> we talked about it on air, wasn't that long ago, and the stocks suffered at that point as well he will take over as of september 27th, ending the long reign of dan shulman >> there was a huge amount of success. >> i don't have clarity on whether elliott is even there but they took that $2 billion stake roughly a year ago but haven't -- at least haven't heard much publicly from that. >> and i feel awful. executives come and go, and there was a period where dan shulman presided over a run after the separation with ebay that was a remarkable run. >> it was. >> and that would have been a great time when he saw that double-digit, 18, 20% growth, it was remarkable but i guess it was just unsustainable, and dan became one of the executives before this where it was beat and raise, beat and raise, beat and raise, and suddenly, it stopped, and it was the classic case of trying to get a book going for investing club classic case of overstepping

just overstayed. just painful >> certainly implications for the u.s. consumer. speaking of which, busy week setting up here as we move on to some of these retail earnings that we're going get, beginning with depot tomorrow. goldman-sachs says it expects the fed to resume easing in q2 of next year, maybe 25 basis points a quarter but goldman does warn policymakers that they could hold rates steady if inflation doesn't cool fast enough they'd already taken november off the table last week. >> i thought this was one of those pieces that, it's a thumb-sucking piece. there could be rate cuts unless there are not rate cuts. thank you. the eagles could make the playoffs unless they don't make the playoffs i just feel like they wanted to talk about pencilling in 25 basis points of cuts per quarter and it's funny because in the same breath, you have a terrific piece by dave kostin who says, things are getting better and stronger it would seem a bit an

antithetical goldman speaks with many voices, including voices of "new york" magazine and "the new york times. >> don't forget bloomberg. it's overkill. what are you doing there >> you didn't read the piece in "new york" magazine? >> oh, yes, i did. i read every word of it. >> look, he was reduced to being a fitnesnance bro. david, do you know what a finance bro is? i wouldn't mind getting a passerooni >> he started them down the road to consumer. to be fair, solomon did increase their -- obviously, the acquisition they made, which was not well timed or well --

>> well anything >> but this is a little absurd by the way, when it -- we're talking about david solomon, the ceo of -- who is the ceo of goldman-sachs and what has been just this avalanche of negative coverage, basically all of which seemed to say that the guy is -- well, i can't use the word here. >> not suited. i'm taking the other side right now. >> let me just tell you, this has been -- i mean, this has been going on for so long. people questioning whether he's going to maintain his leadership there, and i'll tell you, i haven't heard that this board is in any way ready to say anything >> the board likes it. >> take -- talk to him i don't believe at all that they're ready to make a move in any way. >> they're not >> nor is there somebody they could identify were they ready to move. >> i'm so not in line. >> you're not?

>> no. thank you, david i'm talking david solomon's side here this was another thing he goes to hamlin, great beneficiary of hamlin. he's done a terrific job there can we just stop attacking him for everything he does maybe his shirt looks bad. >> he's listening a bit more >> he's not -- that piece was a savage piece >> it was savage good read. it was a good read >> i have had pieces written about me like that and they're like -- my wife would say, listen, if you get a chance, don't read "new york" magazine this week. you may not like the restaurant reviews. >> but all of this avalanche of criticism does not, i don't believe, mean that he's going anywhere >> not at all. but he's orgachestrating it >> i don't know, jim >> it's the partners >> the partners are behind it. >> right, but the board itself -- >> they got the memo that it's not a partnership anymore or they didn't?

>> i mean, the -- i want to own this stock so badly for my travel trust we own morgan stanley. gorman is departing, one of the main reasons we want to own it is we have our own investment meeting this thursday. i fear gorman leaving, but i don't want solomon to leave. he had to get rid of all this junk that went into this retail market >> did mayo say this morning that if he were to leave, stock would suffer >> i don't think everything started with solomon about this retail move. >> no, it didn't he was following through on a strategy that was already put in place. >> let's say -- one time, i did an interview with solomon. >> you may have to listen to more maybe he can improve his contact to a certain extent. people don't like it when you're mean to them, apparently >> solomon is not a mean guy >> i've talked to the guy plenty of times he disagrees with me so what? you're allowed to disagree you're even allowed to make a face and tell me i'm an idiot,

but i'll tell you you're an idiot, and then we move on >> i went to the ceo council, my wife, lisa, and if i mention her one more time, i'm done with her. i see him coming, and i say, oh, shoot, solomon, be cool. and he goes, jim, how you doing? lisa, wow. >> you got to do that. you can't -- >> my wife says, you are such a nothing. obviously, you mean nothing to him other than the fact that you seem like he likes you >> you got to keep a happy face if you're solomon. >> that's why all my chips are in on solomon. my wife says, you got to understand, whatever pressure that guy's under, he seemed like a terrific guy >> talk to the board >> i did >> by the way, montek joined that board weeks ago >> everybody loves that. what is that i'm all in

i'm even throwing in my friend, greg >> all in on solomon i didn't expect that >> i'm all in. >> is it going to be a charitable trust name? we don't know yet? >> i'd love to i'm worried about morgan stanley. i think goldman's cheaper. he said to me -- >> do you ever do anything in that travel trust? do you ever sell or buy anything >> constantly. constantly you're my worst enemy. i work my -- yes >> i know you do >> you raised some cash in procter. >> exactly and i'm looking at buying goldman-sachs as long as solomon's there. >> your losers in particular, you don't sell them. >> you made me sell boeing at the bottom because you intimidated me every day >> that was my fault >> you bet it was. >> we're going to get to boeing because it does get added to the u.s. one list today over at b of a. >> i sold u.s. steel on friday how's that >> that was just genius. way to go. >> speaking of goldman, though,

certainly in the m&a market, we'll talk some m&a in the spotlight as u.s. steel does surge after rejecting this unsolicited takeover bid from cleveland cliffs lot of stuff to get to in media and autos anteand sla d nikola more "squawk on the street" continues. what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart! new nature's bounty hair growth. clinically shown to help grow thicker, fuller hair with just one capsule a day of advanced hair complex. conquer hair thinning... ...and fall in love with your hair all over again. only from nature's bounty.

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[ cheers ] running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! that's what i'm talking about. [ cheers ] running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. got some breaking news on autos and hires over at ford let's get to phil lebeau >> carl, ford is hiring peter stern, a long-time high-ranking

executive at apple who will come in as ford's head of integrated services, a c-suite position he will be hosting a call with jim farley next hour where they'll talk about his new position at ford, and the goal that ford is working towards, which is really to take software as a service and expand it within its portfolio of electric and connected vehicles significance here -- the significance here is that peter stern had presumably worked with doug field when doug field was at apple but has been at ford for the last year and a half, and during an analyst day about a month and a half, two months ago, doug field gave an extensive presentation talking about his vision and ford's vision for software and connected vehicles to be a larger part of the ford portfolio as well as a larger contributor to the bottom line in the years to come at ford, so ford taking another step in that

direction, hiring peter stern from apple he will come in, in the c-suite position, as the head of integrated services and at that level, guys, we're going to be talking about whatford can do to take software as a service to the next level lot of potential there, not just at ford but with other automakers question is, how do you really tap into that and monetize that? >> phil and jim, jim farley, doing this tour of the f-150, talking with the rock over the weekend. i saw that >> yep, and i think that one of the things that i like, phil, is that there's a budding partnership with salesforce -- well, i shouldn't say budding. jim will say it's already big. with salesforce for again the small business is it just for show, phil? >> i don't think it's for show, jim. i do think -- look, i've talked with a lot of people both at ford as well as other veterans in the auto industry, and the question i've always put to them

is, when does software as a service and integrated services, when does it truly pay off great potential there. we've known about this for years. there's nothing new there. and everybody believes that they're close. and i say "they. the auto industry is close it's just a question of, how do you unlock that? ford pro is going to be the first area where they're going to unlock that commercial vehicle sales and the commercial portfolio, that's a huge asset at ford, and if they could have peter stern along with doug field as well as the rest of their executives really find a way to turn ford pro into a great revenue generator on a regular basis, beyond the sale of the vehicle, they're starting to do that that's really the key here, jim. whether or not you or i are willing to pay for software faze a service, i think we're a number of years away from that truly happening. some automakers are starting to spread to the surface but you and i are not to the point where we're willing to pay regularly

for certain software services within our vehicles. >> totally agree i have a ford. my daughter has a ford we don't see the utility, but we're not small businesspeople but in terms of valuation, you are dead right i just can't lump it in. i'm more interested in the september 14, labor day, than i am in software as service. >> absolutely. and for good reason. look, it's going to be a nasty, nasty fall in detroit. >> yes >> thanks, phil. phil lebeau. we will get to some of the estimates this morning out of citi about what a strike would mean for the automakers. got some price cuts at tesla as well in china. we'll get cramer's "mad dash" and countdown to the opening bell in a moment if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision.

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all right, it's time for a "mad dash. got about seven minutes before we get started with trading here at the new york stock exchange and why not? let's talk some more nvidia. >> okay, so nvidia has been going down it's the leader of the decline in the nasdaq, arguably even more than apple. this morning, morgan stanley says it's going to be beat and raise. nobody likes nvidia more than i do this stock is not rallying yet it can churn, maybe, flop and chop i had a great chartest on that said it's going to be the worst stock in the month of august, but i want to tell people, just because a stock has a great product, we do, we know that they've got the graphics cards for a.i., does not mean that it can grow to the sky. and this is a quarter that's already been preannounced with 4 billion more sales than people expected and everyone is turning on it. i was at a party this weekend, and all i heard was, like, you

stuck me in nvidia >> are you kidding me? >> surrender how do i get out of nvidia >> you stuck me? >> how do i get out of nvidia? one person had the guts to call it a dog i named my dog nvidia, and then it died. i didn't need to hear the postmortem obituary about nvidia don't get in it, then. if you can't take the pain, get out of it. that doesn't mean i'm saying buy the stock. i'm saying, we have stocks in this market that go down service now, i like that goes down. salesforce, i like that stock. dreamforce is coming goes down. stop sweating the program and just accept the fact that stocks go down. that's all i'm saying. >> but you still want to own it. >> right >> long-term, and how can you not? by the way, that's just one year we can go back ten years you've liked this stock, we

should point out -- >> i've liked it since i first saw it -- >> eight years, nine years >> i got it right here >> look at that. >> i got it right there because i went out -- but the audi north american exec, and he goes -- i said, who are all the semiconductors he said, a company called nvidia i said, that's gaming chip he said, yeah, why don't you do some homework? when they say do some homework and i don't know, i do it, and i came back and said, maybe this is the greatest satisfactory of all time i'm saying those who are saying, how should you hurt me, nvidia get the heck out of nvidia i don't care who you are or what you are. i'm finished >> okay. you heard it there we got an opening bell just a few minutes away by the way, you know, if you want to catch us any time, anywhere, or maybe even just listen to the entire show one more time, because it's that good, you just want to hear it over and over, we have a podcast. it's called the "squawk on the street: opening bell" podcast.

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we mentioned boeing earlier this morning b of a adds it to the u.s. one list, replacing northrop >> i just think that, yes, boeing is the right stock, and it's been going up it's one of two stocks in the dow that's just been going up in this period. cisco, the other one i got to point that out because i have not pointed out enough how strong cisco has been. those are the two people that people i will say this. there's very little pin action off boeing boeing is going up the suppliers are not going up but i do think that it's become one of the situations where you can do boeing, or you can do ge. that's the only other one that works, and ge -- or nova does. they're doing okay they've announced an acquisition for a software acquisition, but it's not a pure play in aerospace. i like ge, and i really like boeing and i wish for my travel trust

to own boeing, but a great lesson about taking leaps and i'm going to talk about it this week of ourse, it's what was mine if i really had permission, i never would have sold it my conviction was tested by all the screw-ups, and there were many >> there were. let's get the opening bell here. at the big board, it's grand corporation, manufacturer of equipment for energy, defense, and chemicals. at the nasdaq, it's consolidated water, a developer and operator of advanced water supply and treatment plant. jim mentioned cisco. earnings, wednesday night. on friday, jim, citi did open a positive catalyst watch on better enterprise spend and i know you saw the okta upgrade today. >> yeah. and i think that could lead to -- if you like okta, you should love palo alto, which a lot of people are down on, because they reported on a friday and people feel there must be something wrong. that's not true. there might be, but it's nothing to do with friday.

cisco, i have been remiss in talking about how chuck robbins is doing a lot behind the scenes that is a.i. and doesn't get the a.i. premium, which is good, because there's too much hype in a.i. >> you think so? >> i think people haven't figured out what to do with it >> every company is experimenting with it. >> i'm so tired of it. >> yeah, but it's going to be -- it is going to be incredibly significant. it already is. and you saw, i'm sure, "the journal" piece today, what people are paying for a.i. engineers. i introduced this idea of a prompt engineer. this is a real job people get paid $150,000 a year to figure out the proper way to prompt the engine. >> the best single piece i have read about what a.i. will do was the boston properties conference call okay they say there are two kinds of workers. it was one of the most thoughtful pieces ever there's knowledge workers and support workers. they are absolutely convinced that a.i. is making knowledge reporters -- knowledge people

more effective so, the knowledge people get -- need to be in a-class buildings, top buildings. the support people tend to be in b and c-class buildings and they are being whittled away by a.i so, that's how it's looking. support is not as needed and knowledge needs a.i. much more that is from a rank and file company that actually does make a lot -- >> so, productivity enhancement for people who already are -- because, again, we're all trying to figure this out and it's going to be years until we have a better sense and then once it takes over humanity, we don't have to talk about it anymore. there has been a view it shall the creative ranks, actually, were most at threat. it kind of turned it upside down >> and the advertising stocks have been the worst performers so far, and i find that jensen huang met with some of the advertisers, they don't think they are, but a company that is the same kind of company what would use intuit, paypal, they

find that their creative, to hire someone in that group, even to hire monday.com, which reported this morning. the quarter looked very good, but in this environment, it's so hard to get anything enterprise software to do i think that was the quarter you really want to at least see what chatgpt does for you. it might do something more important, more thought-out, and i think that's winning out, particularly for small business people that don't have the money to hire someone to develop a very competitive website >> yeah, this -- you know, we had the writers amtmp meeting on friday and the "journal" piece this morning, luckily, there was no angry press release, but "the journal" has a piece about a job at netflix managing machine learning for $900,000. >> it's real i just think that amazon's able to try to figure it out. i think alphabet's trying to figure it out. i was with someone from the union this week who said, why

don't you guys follow how contentious the union is >> the writers or the actors >> the writers just really. you're missing a major story this is, like, old-fashioned brass-knuckle fighting >> it is >> and a lot of it is how much money the ceos make. >> yes the unions will go back to that, perhaps rightly so, in terms of the differential in comp at the highest levels we can all go back to that all of our ceos. and in the entertainment media industry, in particular, i think there has been a tendency for paying enormous pay packages at the ceo level. >> that hasn't become part of the auto back-and-forth, necessarily. >> well, shawn fain is -- he's more attacking the investors, the investor class, the rich, you know, this is a person who, head of the uaw, believes that, i would say, to use the term

that i learned at college, a kleptocracy of people who are feasting off the worker and have done much better and more importantly, who he's really after in a subtle way is previous uaw leadership, which has caved and caved and caved, and i think that's more of an attack of management, but attack of the previous leaders who just gave in, and he wants a lot of that back. now, some firms are saying that he wants $80 billion back. those companies are dpbeginningo reflect that gm, mary barra, i think, is doing a terrific job managing the i.c.e. to electric transition that stock is four times earnings that means the september strike is going to happen, and they have too much inventory. i think that stock -- i don't want to say anything is a bargain ahead of a strike, but mary barra is doing a good job and that stock does not reflect one ounce of her goodness. >> speaking of unions, guys, they're going to be important

if, in fact, you do get a potential sale of u.s. steel >> i'm so glad you brought that up cliffs whoa >> this morning, of course, the markets are now dealing with the news over the weekend, which is that u.s. steel has potentially put itself up for sale and now strategic alternatives it was prompted to do that by an unsolicited offer it received from cleveland cliffs and that offer was half cash, half stock, up about 35 bucks at the time, $17.50 in cash, interesting from a cleveland-cliffs perspective because this is a company that has been delevering for the last couple years >> right >> a combined company, by the way, wow 40% of the flat rolled steel market, 60% of auto -- automobile grade steel, speaking of autos, and so it's not just getting the support of the unions but of course something we talk about oftentimes here, getting support of the antitrust

regulators you have to imagine that would not be easy. >> i'm with khan on this >> you're with -- >> i am. >> we don't even know if it's doj or ftc i don't know that she would take on this. the board of directors of u.s. steel basically responded to the ceo of cleveland-cliffs in the following way, saying, hey, they got a letter on july 28th. they went back and forth a little bit, but they wanted them to sign an nda take a listen to the language. so they could further clarify on several key issues, including valuation of the stock component, of your proposal, as well as regulatory risk and timing and they say they were shocked to receive a letter on friday, august 11, stating cleveland-cliffs refused to sign the nearly completed nda unless we agree to the economic terms in advance that's where things stand, jim and carl >> i got to tell you that you have a great interview at 11:00. >> i'm not on. carl will have it.

>> a fiery, incredibly great operator, and it would be fantastic. i think it's very funny, you got this 40% number. if you get a president that allows stumping here, that number goes to 20. so, i think that this is something that we ought to be thinking about >> do you create a u.s. champion in some way? like worldwide champion? >> i think so. >> so, maybe you let a deal like that go through? what's his argument going to be for why the antitrust authorities should allow this? >> the argument should be, look at the worldwide, what worldwide portion they have. this should be viewed as a worldwide decision, not a u.s. decision, and that's what i think you'll do, and i think it makes a ton of sense i think if the justice department or ftc were to look at the worldwide values of steel, we need a steel company like this. we've got nucor, which is a competitor, and we have one company that could champion us don't forget, if the chinese found another way to dump,

believe me they would. i like this deal very much, but i fear that the people in the ftc will look at this thing as being domestic and therefore too powerful >> we'll see the news is crossing where zinc, aluminum, copper, lowest since june on some of these chinese concerns we'll get their eco-data this week as well >> we saw chinese, another company, which is a trust company. i mean, i think one of the things what's really amazing is that we literally do not know half these players you see this giant trust company that sounded like manufacturers hand over. they have this stuff they have so many levered outfits over there >> they do listen, the chinese economy is a -- >> ticking time bomb >> key consideration for many people >> we talked about the president's fund-raiser comments on friday. >> ticking time bomb may have been a bit much. >> i think they are in retreat in a way that i did not expect i can understand, obviously, the

tariffs, but here, they're doing chips. they're doing semiconductors it's very difficult to go to the next generation of any product i mean -- >> and that is the national security >> coca-cola is no problem there's a good stock to own, david. why don't those meme jokers go after country gardens? >> looks like wework or wheels up or -- >> it's too small to talk about. >> is it now it wasn't when barry sternlicht put $50 million in the pipe. i guess it is now. >> i had a tomato harvest last weekend that was so big that it was worth double country gardens and not nearly as levered, by the way. >> and you don't have to ship it >> it's already done he's not even laughing more ball jars >> i'm still amazed at some of the spacs. not amazed but this -- >> i had them on, it was a big

mistake. >> 36 cents. >> walmart's going higher and higher with retail this weekend. >> i'm glad you brought that up, jim. >> when do they report >> this week >> wednesday >> why don't we be more specific >> walmart is thursday tomorrow is doeepot target, wednesday. >> there was a downgrade last week of a company called stanley black and& decker a lot of it was a veiled reference to home depot not doing well i point out there's a company called azek that has sold not exclusively to home depot and this is artificial decking, and they're having a great, great quarter, and i think that home depot is not look at that >> i remember when those guys -- >> i put them on he said, look, things are great.

but they are -- that's a proxy for home depot >> wolf did cut stanley to underperform on friday >> i thought that was very ill founded. >> today, b of a, ups consumer dr discretionary to overweight and has ten reasons why it's time to get cyclical here. >> i thought that was incredible geez if you're at home, you're b bombarded with the cross currents a incredible. time to get cyclical because the fed's done tightening? okay >> i think one of the reasons, in addition to fixed mortgage debt -- >> why don't you just go buy jpmorgan david, i read "the house of morgan." almost finished it chernault is unbelievable. jpmorgan is an incredibly well run company. i like charlie scharf and wells fargo, because it's more levered. >> she's arguing you go value, small cap, early cycle >> you can get -- those could

be -- you could be stuck in them forever. i like wells fargo, it's liquid, it's big charlie scharf is buying back millions of shares and charlie is one of the nicest people in the business >> that is not true. >> it was a checklist. >> just making sure i was listening? >> yes >> i'm not saying he's not a nice guy he's a tough guy >> he's a tough guy. that's why i think he's going to turn around wells. >> still turning around? still? it's been years. >> ford had to go. i mean, remember, the federal government didn't care for wells. in february of 2018, they sanctioned them. look the goldman what is that, just on the negative publicity >> i don't know. >> that he might leave >> by the way, stock goes down if he leaves he's not going anywhere. >> he's not. >> then why does he -- endless articles, just wasting ink, wasting trees, wasting whatever they still waste, i don't know >> did you mention electric

earlier? >> yes, i shouldn't have joked about it because it's a tragedy down there david was saying, jim, you sold boeing, skpand i said i bought hawaiian electric on friday, which i did not. hawaiian electric is one of those companies that could be like appropg&e remember when they got crushed by the fires and then patti poppe comes in and turns it around, but they had to have a trust. they had to have a trust for it. so, it's worth watching hawaiian electric it's always been one of the cheaper electric companies >> i wanted to come back to the story we led with, paypal. they've come out with a release. alex chriss replacing dan shulman. you mentioned turnarounds, jim i don't know if you could term it that. the board says, listen, the businesses he's overseen at intuit have become customer growth engines and platforms for

small to mid market companies and entrepreneurs. he's led, by the way, the small business segment at intuit for the last five years. he's grown business and customers at a compound rate of 20 and 23% respectively. >> paypal used to be that. >> board has indicated to me they reviewed as many as nine candidates, took that down to four and made their choice of mr. chriss recently. also having spoken to as many as 20 investors around the process, trying to get a sense from investors as to how they were thinking about the company >> well, square and paypal have been the two losers, and then one of david's favorites, visa, and mastercard, have been the two winners, and if you look at the visa and mastercard moves, these are basically saying, okay, look, that was really fun with the fintech glad you had a good time buy visa and buy mastercard, and that's what i want to do i think mastercard is an incredible company and visa is

amazing. amazingly well run if you want to play fintech, play the original fintech. play mastercard. >> otherwise, the star of the stock market right now is comcast. >> well, it was an incredible -- it's our parent company. there was an incredible article that barons about it, talking about the division broadband is doing well. what did you think about the hulu valuations people are talking about? >> we'll see that process could end up being a little more fraught in terms of just the back-and-forth obviously, our parent come, comcast, is going to want as high a value as possible for 33%, which it will be getting bought back by disney soon beginning of the year is when they can >> it's not going to be $9 billion >> you think it's going to be more than the floor? >> i think it would be a billion dollars. >> it depends how you go about measuring it they do have a process, and they're going to have independent, and you get -- come to an agreement. >> i'll tell you what's interesting. the wild card, which always hope

that your team is in the nfl playoffs, wild card is owned by peacock. you may buy peacock for the wild card and then cancel, which is a jerk thing to do but i'm -- i know that i got to watch the wild card. anybody. if your team's in the wild card, you don't just sit there and say, i'll listen on the radio. >> back to the strike. what's going to be on all these streaming services six months from now what are they going to have, other than reality programming >> news and sports >> three stooges no, look, sports is still -- you know, global sports -- global football is still incredibly popular. tomorrow night, the union plays miami in philadelphia. that's messi i don't know if you've been following what's going on with soccer >> he's scoring a lot of goals >> messi is the most exciting person -- >> by the way, he's very good, apparently, at this game >> interesting i can't wait to learn more about him. >> he's very, very good. >> apple has the mls contract.

>> we didn't know that, jim. you haven't mentioned that >> you ever talk to eddy cue about that >> all the time. >> we know nobody has spoken more about apple and soccer than you. no one >> they beat them on friday. >> while we're talking about things to watch, amc, worst day here in a couple of years as this stock conversion plan, jim, makes its way in the courts once again. >> don't forget you have the eight side you get that -- >> they're allowing it >> you get the aip >> they're doing better now. herb greenberg had a good piece this weekend about tupperware and how the memes are being played like fiddles. >> or dan loeb's take. >> and a just what fools they are. now, i beg to differ they managed to go to these companies and save them. they saved carvana made a lot of money if they got out. they made tupperware to a level

where the bankers think that they made fools of them, but then again, if you got in, got out, you want to play that game, that's like, you know, you go to the casino this is going to the casino. i'm not comfortable with the casino anymore, but it's not as good as blackjack. it's not a skill game. it's more of a "wheel of fortune" or the slots. i think to say that adam arons is not unlike a slot machine is not wrong. ding, ding, ding >> let's go break here we will get our normal three and six-month auctions today interesting build gross on television friday saying fair value for the ten-year right around 4.5%. in addition to the ecodata that we'll get later in the week, retail sales on tuesday and fomc minutes on wednesday we're back in a moment

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time for jim, at stop trading. >> junior salesforce dotcom, monday.com, net dollar tension 110. i think those are the most important numbers. they did a non-cap operating income 60 million, but this thing is taking off and this matters because this is a classic enterprise software customer relations management platform, with many of the dirchts things on the platform that could get people to start thinking, you know what, these enterprise companies going down week after week may be oversold. watch monday if you can hold that gain, you see people coming out and recommending some other enterprise software companies that people have walked away from stay there, let's watch it.

>> we'll see. >> absolutely, thank you. >> dow is opening lower, by about 75 points. we'll continue coverage this re."ing on "squawk on th dot ae n'gonywhere. ent ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah! it's time to take control of your investing education. cut through the noise with best-in-class education resources that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠.

good monday morning, welcome to another hour of "squawk on the street." i'm carl quintanilla, with lesley picker and david saber. sara eisen has the morning off retail sales, fmoc minutes, and eco data headed our way. >> we are 30 minutes into today's trading session. three big movers u.s. steel shares surging, the company rejecting an unsolicited bid to take over for $7 billion as they explore, quote, strategic alternatives and paypal, in the green, naming a new ceo, executive alex chris, more on that news in a moment. and finally, tesla under pressure, down digits double on the month, and more price cuts this morning, especially in china. those details later this hour.

guys so china, big topic of conversation this morning, the risk of contagion, the potential for either just a churn of headlines, a churn of noise that i think has investors a little bit on edge this morning, potentially outweighing some positive headlines that are out there, the potential for additional rate cuts in 2-q, at least according to goldman but china more in focus this morning than it has been. >> the journal focusing on the corporates that are suffering as a result we talked to one of them i mean, caterpillar. others, starbucks actually doing okay but the chinese economy overall has been a focus, continues to be, the worries about deflation. we talk so often about the youth unemployment rate which to me seems like something that's unsustainable. keep above 20% just the idea that the second largest economy in the world is slowing, and slowing somewhat dramatically a lot of questions in terms of

whether they will do something to significantly stimulate. >> the market has been on stimulus watch, hasn't happened yet and a lot of early projections for chinese growth we had coming into the year have not panned out at all. today it's all about industrial metals when you look at aluminum, zinc or copper, since about june, export trade data last week. we'll watch that it does, as leslie says, collide with the view on the u.s. consumer as bofa takes consumer discretionary from underweight to overweight and goes through all the reasons why the consumer is in excellent shape, whether it's their fixed mortgage rates, or their average deposit balances, or real wages inflecting positives they say soft landing all fits with that scenario. >> it's taken a while for consumers to draw down on the stimulus they got during the pandemic, i think longer than most economists were expecting you talk to bank ceos and they shae the health of the consumer

remains strong they're not as concerned about default rates at this point in time they're not as concerned about overall credit card balances, although that debt has ticked up above 1 trillion an interesting number, but in terms of the overall health and relative to the overall growth in the economy, people don't seem as concerned. we'll get, of course, a new reading on that with target reporting this week, walmart reporting this week, retail sales as you mentioned this week so it's going to be a big week for the consumer. >> yeah, that's on top of a view, among some, that the fed could start cutting next year. goldman headlines with this projection, baseline forecast. let's go to steve liesman. >> good morning, carl, yeah dpo -- because of recession which is not what goldman predicts, a growth scare or a convincing decline in inflation they caution there is a lot of uncertainty around the outlook, but here is their new baseline

forecast, 25 basis points. future rate cuts of 25 base points per quarter, ending up at 3 and 3.25% as their new neutral rate pretty slow to get there the motivation for cutting outside after arecession, restrictive level back toward neutral once inflation hits the target goldman's call is not new to traders in the fed funds futures market for several months now they have traded with a likelihood of a rate cut beginning with a 62% chance of a cut in may and near certainty by midsummer not really a market moving call here sales forecasts, average estimate of 4.16 or down almost 75 bait points from the current level. the market is more aggressive than the fed or goldman with a 4.16 year-end funds rate john williams in an interview

last week said if the fed doesn't cut while inflation falls, real or inflation adjusted rates will become more restrictive than the fed wants rates are likely to fall if inflation falls. the question is, how quickly and when goldman's note shows the important of what happens in the next few months is receding, and the question of rate cuts next year are increasingly on the markets radar, guys. >> steve, when it comes to inflation on friday after we obviously got the cpi, i didn't ask you this, and i'd like to ask you now, which is to the extent that the index for -- was the largest contributor to the monthly all-items increase, i think some say 90% of the increase, owner equivalent rent seemed to be a big part of that. you know, and you forgot more about this stuff than i know, isn't that just a survey of homeowners saying how much would you rent your place for? if that's the case, is it really reflective on an actual increase >> it's very comfortable, david,

you can call me on the weekend you don't have to wait until monday if you're going to ask me something on friday. i'm available 24/7 just want to put that on the table. but here's the thing, it is a computation where they say, here's what rentals are, and here's the equivalent of, if a homeowner were to have to rent his home -- his or her home, they would have to pay that price for it it is a computation or an imputation is probably a better way to put it. it's not really reflective of people's housing costs, in part because so many people have their mortgage already locked in they're not paying that. and in addition, dave, what i thought you were going to ask me about, is the idea that over time this number is expected to come down because rents are falling, and so this is going to come down. so that was another reason for comfort with this number, even though the headline number went up and by the way it's supposed to go up in the months ahead because of what we're seeing in higher oil prices and other commodity prices over the last couple months. >> very good, steve, a lot of moving pieces, obviously, in

these next few prints. steve liesman. let's continue that conversation with the president of yardani research and it's hard not to talk to steve about that or read the goldman note over the weekend, and not think about your phrase, immaculate disinflation does this sound familiar to you. >> last week on thursday, excluding shelter, to continue this conversation, excluding shelter it was up only at 2% core cpi was up 2.5% on that basis we're awfully close to the fed's target of 2%. as steve said all we're waiting for is for rent inflation to come down. everybody knows that that's a bizarre lagging indicator of rent everybody knows that the zillow index, the apartment list index, inflation rates have come down dramatically it's locked in, it's baked in the cake that we're going to see lower rent inflation, and that

should offset some of the increases that we might get in oil prices but i think overall we're still looking at a disinflationary trend. >> when you look at in goldman's case, somewhere around march, the notion of cuts, are you on board with that, and can it happen less from sort of emergency reaction, and more to how real rates are -- have become, at that point, maybe too restrictive? >> again, steve mentioned the john williams interview that occurred i think it was actually august 2nd, and then it was picked up last week. but he said something extremely important, that is he said that he focuses on real interest rates, not nominal interest rates. he thinks if inflation continues to moderate the federal reserve will have to lower interest rates. otherwise they're going to be increasingly restrictive so i think they're already putting out there the idea that interest rates will be coming down next year if they continue to achieve their goal of moderating inflation that's extremely important

message to get across to the bond market because i think their number one risk now is that the -- the disinversion that occurs in the yield curve occurs in an unusual fashion usually it's an inversion of the yield curve occurs as we get a recession. short-term rates come down and bond yields come down and that turns out to be a good, bullish, optimistic scenario for the market this time around the risk is that the bond yield just keeps going occupy as you see we're at 4.2% if it just keeps going up and up, that could create a whole new set of problems for the economy. >> what are those problems, ed, and how do you see an unwinding of the inversion of the yield curve, you know, if we are able to essentially kind of skid by some sort of hard landing scenario. >> there's two disinversion scenarios, as i just suggested one is where short-term rates come down and long-term rates come down, but short-term rates come down faster the other disinversion scenario

is not a anticipate one, it's a bearish pessimistic one where the bond yield moves up to where short-term rates which are pretty close to 5% seeing the 10-year bond yield going to 45% would be pretty difficult for the banks. as it is we already have a banking crisis, moodies has downgraded the banks, more losses in the portfolios, and perhaps shake up confidence in the banking system they don't want to go there. and then that would play on the commercial real estate market, still higher mortgage lending rates in that market would be a disaster it's already sort of a semidisaster, it would be a complete disaster. so, i think, john williams is trying to kind of calm everybody down and talk down the bond yield from really spiking up here. >> hey, ed, what do you say to those who argue that real wages inflecting positive is inflationary and that's a worry longer term if the consumer

remains flush? >> well, nonsense. what else can i say? i mean, real wages historically go up because of productivity. you cannot have wages rising faster than prices unless it's really driven by productivity. you just -- it just doesn't happen and so i would welcome an increase in real wages if you're talking about an increase of nominal wages driven by some of these very high-end union contract negotiations that are going on, now that is a concern. but again, i don't think that real wages can go up without productivity going up. i'm pretty optimistic on productivity i think the tech revolution is out there to make productivity grow at a faster pace to solve the problem, solve the problem we have is we have a shortage of labor. >> yeah, definitely the data recently has been pretty encouraging. ed, interesting setup of the

last part of the year. road map for the rest of the hour, how to play big tech names here as names like tesla, innvidia, and apple. >> hope you guys brought your rain boots, the latest moves from some of wall street's biggest names this hour. >> i'm sure the paypal are w o.er after the company named a nece details next "squawk on the street" is right back a heart valve problem. so if there's a better treatment than warfarin... i'm hungry for that. eliquis. eliquis reduces stroke risk better than warfarin. and has less major bleeding than warfarin. eliquis has both. don't stop taking eliquis without talking to your doctor as this may increase your risk of stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. while taking, you may bruise more easily... or take longer for bleeding to stop. get help right away for unexpected bleeding, or unusual bruising. it may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical

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paypal naming a new ceo is alex chris from intuit runs an important number of businesses at that company, including sor of its focus on small and medium-sized businesses oversaw the mail chimp acquisition and quickbooks this is after a significant search by the board of directors that has taken place over actually since february i was told to replace dan schullman who has been the longtime ceo. chris will take on the role as of september schullman stays on until the annual meeting in may. speaking to a number of members for the search committee, they were enthusiastic, saying they whittled it down from nine candidates to four, mr. chris in

particular, the focus on business, customer-facing role he's had, being able to add to the product portfolio at paypal and get margins up as a result of providing products that will specifically enable the company to grow at a faster rate will be helpful. >> do you think there's anything to make of the fact that he overawe the mailchimp acquisition? that was a $12 million acquisition. >> it was. >> does that signal he could be overseeing deal-making, or the board is looking for additional deal-making? >> i asked that question, it's a good one the answer was that, yes, there's an expectation particularly in filling in holes in the product portfolio, and doing so through acquisition. >> not 12 billion. >> this company ran into a lot of issues when it appeared to be going after pinterest if you recall the stock price has never really recovered. the company at one point had a

$350 billion market value and now it's around 7 billion. the pinterest deal was one that investors looked askance at. don't expect mr. chris to be looking at anything down that road there is expectation, given the 5.5 billion in free cash flow, that they can do acquisitions that will fill in a product port o folio. the board seemed enthusiastic. he's never been a ceo, he run as division with 7,000 employees at intuit, but this will be almost 30,000 employees. >> the board said elliott and other investors didn't have a direct role in the search. >> no. >> is there a sense they're happy with this decision >> i haven't heard from elliott. it's a year ago we learned o this significant stake in the company, uncertain as to what their stake is because i haven't had a lot of specific conversations, nor have they been public about what their views are. that said, the board did -- i

was told the board met with as many as 20 investors, broadly speaking, to get a sense of their vision of the company, what they wanted to see in terms of the new ceo, but more importantly the strategic direction of the company elliott was amongst those, but again, had no place in the actual search. >> we get -- a slightly updated snapshot of where elliott is with paypal as well as other managers as we go whale watching after the close today. >> looking forward to it. >> slightly delayed. >> you want your binoculars for the whale watching. >> the producer is reminding binoculars would have been a better metaphor. >> i went on a whale-watching cruise in hawaii, and two hours in, they said we haven't seen a whale in months, here's a -- >> rain boots more for that than binoculars, the analogy holds, stay with it the read on retail ahead of the slew of big earnings from the

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home doe poe, target and walmart, and more report results and despite rising consumer concerns the national retail federation is forecasting a record-breaking back-to-school season, and here to discuss, ray washburn, to discuss this and more so, ray, give us a read of kind of what you're seeing on the ground right now realtime with regard to the health of the consumer. >> consumer debt is at an all-time high. so we saw a lot of retail sales, especially for back to school, get pushed much earlier in the summer because schools are starting earlier i think you're going to see a second quarter load of sales the third quarter is affected by we are very cautious about looking at the third quarter first quarter it was extremely strong across the entire portfolio. we're seeing it in our restaurant business as well. second quarter is a little bit flatter and i'm very, actually, cautious about this third quarter because of the sales.

>> just to put a fine point on it, you're -- impact their willingness and ability to spend more from here >> yes, and i think the second quarter, i think a lot of sales will have pushed up this year from this year because of school starting earlier as well but on a luxury side, which a lot of our luxury brands are doing extremely well but the legacy brands, the gaps of the world, things like that, their sales have actually been kind of flat but we're seeing the luxury sales hold up, but it's primarily in accessories, handbags and shoes and things like that. but we're -- we've had a good year i'm just optimistic -- i mean, i'm very, you know, cautious going into this year, just because consumer debt is so high. >> interesting you know, speaking of kind of the debt world, what about the commercial real estate side of things i know you have a real estate portfolio. you know, you're a private equity investor as well. is that creating any concerns

on, you know, especially within kind of the texas market >> well, i'll speak to retail. really on a national basis, they can see rate and retail across the country is about 4.25%, less than 5%, an all-time low, no construction lending going out because banks, we built office buildings, apartments and everything, and banks have basically just shut the door on everybody. i mean, there is no lending going out the door at all right now. and so, that is actually good if you already own retail it's been a whole firm because you're not going to have competition coming on. tenants that have vacated to bankruptcies like bed bath and beyond, those have been quickly back filled. the big merger going on with tapestry and capri and things like that, that's an interesting dynamic. you're going to see premium retail much like premium office, tenants are more and more going to gravitate to that if you're a one-off brand that's

been bought by lvmh or others, they're clustering their luxury retail together and going into the pleremium center. we're a beneficiary of that. the centers and malls with one or two -- announced part of the bigger group, they're going in and trying to cluster the tenants together so, you are going to see some softness, i think, in more softness in the secondary retail from that standpoint. >> ray, back to the consumer do you expect to see this dichotomy you were describing between luxury and sort of mid-market >> oh, yeah, the luxury has held up strong through the entire pandemic and we're seeing store sales and luxury sales and you can look at our portfolio, we have the best of the best brands, they're having a good year this year, and we see it going on it's kind of like the have and

have notes much like it is in other parts of the economy. >> you know, and just finally, to come back to the banks because we cover them closely. if you want to develop something right now you couldn't get the money, it's that simple? >> we just closed 1$120 million high-rise apartment loan in dallas, and we used to be able to get 65 or 70% mortgage on it. they're down below -- i think we got 45% on this. so what it's done is it's squeezed your returns. investors are like, why even go into it because i don't get the leverage to get the returns i need it's had an effect the construction price, the other interesting thing is the cost of construction continues to go up even though demand for, you know, construction is going down but we're hearing from contractors around the country are calling us, which they wouldn't return calls for so long, they need work because they can look out in '24 and '25, and they see it slamming shut

gol goldman sachs q2, a $900 million loan has been held up. jp morgan finally did the loan but it's been a very difficult environment. goldman sachs, 100% lease build, go and look at something like that as an example. >> it's clear the credit conditions are definitely sour and souring all across the country. but thank you for sharing a picture of what you're seeing in texas with regard to the state of commercial real estate as well as the consumer we appreciate it, ray. >> sure, thank you for having me. still to come this morning, the tech tumble breakdown, names like apple and nvidia have been having some trouble lately, although somereversals in nvidia, at least, today. the broader sector, worst month since december team topics coming up after the break. ♪ ♪

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welcome back to "squawk on the street," i'm bertha coombs with cnbc news update. the search and response efforts are entering recovery phase. 100 people are confirmed to have died in the wildfires last week. the number will grow as maui county is searched for victims estimated 3% of lahaina has been searched so far. the u.s. and south korea announced today that they will stage their largest-ever military drills in south korea later this month tens of thousands of troops are expected to participate. the announcement about the ramped up drills comes on the same day north korea leader kim jong-un visited key military factories and called for an increase in missile production. and there's no question some new images from the webb space

telescope appear to show the telescope captured what looks like a question mark in deep space. some scientists are speculating the images are a pair of galaxies that merged together and formed the familiar shape by coincidence. really a question mark. i wouldn't have believed it unless they said it was real, carl. >> is the riddler in space, bertha >> very odd. thank you, bertha coombs just about an hour in trading this morning, mixed market dow down 26, s&p is positive as consumer names are definitely outperforming today. let's get to dom chu with more on what's moving. >> most sectors are trading lower today but the s&p is hovering near flatline more heavily weighted sectors are outperforming a bit, but notable movers to keep an eye on within materials starting with mosaic, one of the worst performers in the group, underweight rating they cite the ongoing price

decline in potash and labor disputes rival cf industries equal wait rating, but increasing the target price on the stock overall, they say their confidence in the ability to execute better than its peers, but they do express some caution on the declining fertilizer prices macro within fertilizer. david, back to you. >> thank you, dom chu. it has been a somewhat turbulent recent time for tech, at least this month. it was the worst sector last week headed for what would be its worst stretch in terms of the performance of many of the biggest stocks in december the nasdaq 100 did drop below its 50-day moving average since march. this is a time-out and it will resume later in the year let's bring in our tech panel. piper stanley, alex brent. first take here, what do we make of this pull back, is it the pause the refreshes?

>> morning, david, yeah i think ultimately tech overextended we had all the a.i. hype, and then followed by expectations that things were accelerating in terms of demand. demand is stabilizing and a.i. won't have a material revenue impact, at least for software and internet names until 2024. so i think it's a simple time-out, overextended, the software index, the igb was up 43% on year to date, it's pulled back into the low 30s. we've had just a simple time-out, which is we just got overheated and we believe in the a.i. momentum, but it's really going to take time for this to show up in terms of montization. >> enthusiasm around the prospects for the cash flows that would come from a.i., when do we actually get back to the fundamentals being altered as a result of what we're seeing from a.i. >> it's really going to be 2024. most of these products will be

rolling out in the fall and through the winter and we think that ultimately enterprises still have to test and train the data and so they're not going to necessarily jump in and do a can nol ball into the a.i. pool. they're going to tiptoe in so we think this will have a bigger impact on the revenue next year. it will affect the interest level is high, conversion rates right now are low. many of these products from salesforce to microsoft, across the board, are still not fully generally available. they're in test modes. and so we're doing these test flights, if you will, with these co-pilots. you're not going to get a lot of passengers on the a.i. planes until you get into '24. >> i see that you have also believe that a do you see additional pullbacks from here, or do you think at this point, you know, we could see at near-term bottom in these -- at these levels? >> thank you for having me on

your show. so we have a slightly different tweak. we are incredibly bullish on tech at this point in time and continue to be so. you have to keep the perspective in mind. we started the year, beginning of the year most of these stocks were incredibly low coming off cyclical lows of last-year problems but we are going to see a pretty tremendous exploration, particularly in semis. numbers for you, the one that comes up as a problem child as far as valuation is nvidia trading 15 times this year's numbers. the eps is going to more than double it's almost going to triple this year and in january 2024, and up another 50% from here. and stocks like nvidia, stocks are companies like nvidia, like amd, are seeing the benefit of a.i. today because semiconductor stocks come in a little bit

ahead, six months to a year ahead of technology deployments of larger players. i believe nvidia, amd remain top favorites for a.i. play, and i do agree with the rest with brent. >> where do you see the marginal dla r, to follow up on that, harsh, coming in for tech at this point do we have to zerotation out of treasuries into tech where is that additional cash on the sidelines that could help propole these things higher? >> so, another thing to keep in mind that's very interesting june is typically the seasonal low point for tech companies, it's also the low for most semiconductor companies. we're just at a point in time where earnings tick down a little bit, maybe possibly stabilize flattish as i mentioned we start to see an acceleration. i think the tech dollar, the next incremental dollar will probably come from either treasuries or might also come

from other sectors as people realize or investors realize that growth is coming back to tech. >> brent, really quick on some of the big, alphabet and meta, how are you sizing up the ad market going into the last few months of the year >> things have been really good, but, i mean, things have been stable we've seen a material change in terms of the advertiser's attitudes to come back ultimately, i think for google and meta, we've seen a stable to improving environment, obviously the shift to continue to the platform continues, and i think the fear of google getting a.i., you know, that was the -- that was a big issue, and held the stock back we thought that was obviously not well-founded by what the industry was saying. that was a wall street thing so they're, i think, meta and google are in fantastic positions, amazon obviously as well with their advertising business the back half. as long as the overall macro environment stays okay, advertisers feel healthy

that's the biggest barometer and right now we see that currently right now. so, overall, looks pretty good in terms of the back half of the demand from what we can see so far. >> guys, thank you both. brett and harsh. >> thank you. >> thank you so much. speaking of big tech, tesla is under some pressure today after another round of price cuts at that name. phil lebeau has details on that. good to see you again, phil. >> hey, carl, these are price cuts that tesla initiated overnight in china, and that's some of the pressure, as you mentioned, on shares of ford let's run down the price cuts. they affect the model y vehicles built and sold in china. these are long-range and performance models the price is coming down just under $2,000, works out to 3.5, 3.8% taking a look at annual sales, china is the biggest market for them along with north america. but it really has been the

driver of the growth in terms of their vehicle sales over the last couple of years they're still targeting 1.8 million vehicles to be sold this year, and you know when your sales drop 31% as they did between june and july, you were going to see this. you will see price cuts in order to stoke the market a little bit. that's one reason why you see shares of tesla under pressure today. guys >> phil, i mean, we're all trying to get a read on the chinese economy, and obviously it's pretty important for tesla. >> yeah. >> you know, are there any expectations there, anything we can read into this in terms of previous times they've cut prices as a result of lessening demand >> usually -- yeah, david, usually it does stoke demand, and we've seen it work in the past where it has made people say, okay, i'm going to pony up. they're offering increased incentive in terms of the insurance for model y vehicles in china china's vehicle sales, especially in the ev market have been very lumpy month to month so when people saw the 31% drop

in sales from july to june, they said, oh, well, here we go, the market is incredibly cooling off. you could see a jump, another 15, 20%, from july to august so, you have to be careful about looking at each month and saying, well, here we go, we're seeing the real cooldown in demand or in sales at evs in china. >> at these levels, phil, how does tesla compare to some of the other popular vehicles that are sold in china? is it seen as a pretty good deal for them >> well, yes, it is. i mean, tu it -- look, that market over there, when it comes to evs, far different than here in the united states where there's not a whole lot of competition for tesla on the lower end of the market. i mean, you want to go into a model y here in the $40,000 range with incentives, there's not a ton of competition different story in china where there's a lot more competition over there that said, tesla does have the brand strength in china that you don't see with other brands. some brands have it, but not a lot of brands in china

and that's really to tesla's advantage in china. >> all right, phil, thank you, thank you very much. as we head to break, check out the biggest gainers on the s&p to start the week. you've got micron up more than 5%, teledyne up 4% decent rally to start the week in some of the tech chip names over there "squawk on the strt"etns tethisee rur no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across clouds, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. ...to make quick decisions? check. aaaand check. that's the solution ibm and a global bank created. what will you create? ibm. let's create.

the taillight race for next year definitely heating up our brian sullivan sat down with florida governor and presidential candidate ron desantis earlier this morning, and is going to have a lot more tonight. hey, brian. >> carl, thanks very much. yeah, we just wrapped up about a 30-minute long interview with the governor and gop hopeful ron desantis, the governor's mansion behind us in tallahassee, florida, it was a wide-ranging interview, got into all cnbc

topics, economy, taxes, china. we had to address the issue of disney and his very public fight with the company, and i asked him just directly, have you or would you just give disney's ceo bob iger a call? >> no one has made disney more money recently than me because during covid they were open in florida. they were locked shut in california we said we want you guys to operate because we understood how important it was that their cast members in central florida had the ability to make ends meet and, in fact, when disney closed their parks, i didn't tell them to close they did it voluntarily. we got all their employees' information, we ran them through unemployment, helped them stay afloat. >> you've got a beautiful desk over there, want to pick up the phone today and give bob iger, if so, what would you say to him? >> he wasn't ceo when this happened. >> i know. >> but here's the deal i would say apart from florida,

disney's had a lot of problems i think that the skirmish they got in with these young kids, parents have lost some confidence that this is a company that's really speaking to what they want. the way it had been traditionally. i would say as a parent, look, my wife -- we got married at walt disney world, okay, so it's not like we're opposed i mean, we've appreciated working with them over the years. but i would just say, go back to what you did well. i think it's going to be the right business decision, and all that but where we are today, you know, we've basically moved on they're suing the state of florida. they're going to lose that lawsuit. so what i would say is, drop the lawsuit. you know, you have the state that even mscnbc ranked as numb one, we lead the business formations, unemployment is low, people are bringing capital into florida. this is a great place to do business your competitors do very well here, universal sea world, they have not had the same special

privileges you have. freet everybody the same and let's move forward i'm totally fine with that, but i'm not fine with giving extraordinary privileges, you know, to one special company at the exclusion of everybody else. >> so he has not spoken to bob iger, carl, but it sounds like they might be open to a conversation another huge topic we talked about earlier was the issue of china, and if ron desantis were to become the president of the united states, how would he view the important economic relationship with china? >> i would view them as an adversary, and i think it's -- it doesn't mean you don't deal with them. of course you've got to deal with a lot of people but that is -- that is not the direction we these to go and so if you look at our defense posture, we really still are stuck in europe being the primary theater of our concern, and that was understandable after world war ii because you had the cold war and all that, of course. now the indo-pacific really needs to be our top concern because the china threat is so much more significant than i

think any other threat that we face, and that's going to require more hard power, yes, more naval power, we have like 280 ships right now in our navy. ronald reagan in the '80s had it up to almost 600 ships so we need to do more in terms of a naval buildup, all with an eye to projecting power in the indo-pacific i think you can deter china. i think time is running out to do it, but i think we can do it. >> and i joked with him after that answer, guys, that sounds like defense budgets would not be cut obviously, there's two small parts of a 30-minute interview, we talked about all the issues that are critical to the cnbc audience, we talked about the economy, taxes, interest rates, economic policy. if you would renominate jay powell, and even if you would ban congress from trading stocks the full interview will air tonight on "last call" 7:00 p.m. eastern time. >> interesting, brian, to hear the back and forth, obviously, on disney, a subject i've followed closely they would say we're not looking

for special treatment, we're just trying not to be singled out because we smoke our mind on an issue where we disagreed with you, governor. and, of course they would also say when it comes to the economy of florida, i mean, they started walt disney world and that really started everything. i mean, what was orlando before that in the '70s it's very interesting to hear him comment on that, or really not really say in any way that he seems willing to engage with them he's kind of moved on almost, hasn't he? >> well, you know, going back to your excellent interview with bob iger, dave you and i should get together, we could broker a meeting between the two guys i had to actually ask the governor what was the cause of the beef i almost couldn't remember what started this, a florida bill, the parental rights in education act, and then disney got on bard with that, they went back and forth. now they're being sued there were board changes i mean, it's gotten bad, and i think one thing i tried to get

out of the governor was whether or not this would be some kind of a national issue. in other words, would you sort of disney-fy other companies if you became president and there was some cultural aspect of their business that you disagreed with, would this be a model? to your point right disney and t probably given their mutual importance, i think, david is what you're getting at, maybe they should get on the phone. >> this, air quotes, war on woke platform is one where he's kind of become a poster child for, and i'm curious as -- if he were to become president, if there was any kind of federal mandate he would instill on that front obviously, our viewers and the cnbc audience wants to know how that affects the investing environment, how that affects banks and other areas of wall street, which has kind of become more polarized in recent years >> yeah. and i got into that a little

bit, leslie, again, but there was a "new york times"/siena college poll last week, i'm just going off memory, where likely gop primary voters, people that would likely vote in the gop primary, 56% said they're more concerned about law and order, crime, than about esg or anti-esg type things we're cnbc, right, leslie, you covering the banks, you're so deep into t i kind of got into it a little bit with the governor about, do people really care does the broader -- we care. we're cnbc, but does the broader el el el electorate care about esg? i don't know. >> i think it's a good question. when it first surfaced, people were like esg is in the forefront, and getting dollars in recent years but now it's

become in the main vernacular of the u.s. population. so i'm glad you were able to talk to the governor. >> quickly, i will say this. he brought up janet yellen he thought the treasury secretary is living in an alternate universe, particularly as it pertains to china, which is how he got into i view them as an adversary. before that we talked about china's role, want only the global manufacturing power but also the manufacturing of critical things. china's role in the pharmaceutical supply chain, critical minerals for electric car batteries. it's going to be a delicate dance whomever is in the white house, whether it's president biden or somebody else in 2024 with one of the most important economic nations, china, and military nations now in the world. full interview tonight, 7:00 p.m. >> can't wait. definitely will be tuning into that, brian. thank you for giving us some of the highlights as a little preview. we appreciate it speaking of critical things, u.s. steel shares surging as the

company rejects buyout from cleveland-cliffs these shares up more than 27%. the ceo of cleveland-cliffs joins us next hour to discuss. we're back itwn o. my cpa told me i wouldn't qualify for the erc tax refund, so i called innovation refunds. their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound]

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welcome back today after the bell is the deadline for 13 s filings that show how managers with their long holdings after june a snapshot of how their holdings changed in the second quarter. we have gotten a few early filers china tech and chipmakers boosting exposure to the ev ecosystem adding to holdsings in lucid, fisker and quantum space. within chips the firm is being more discretionary adding to amd and applied materials, but paring back mxp on semi and nvidia starboard dissolved a stake in

semi within big tech, a new position in amazon, worth about $125 million, but decreased its stake in alphabet. d1 also trimmed its stake in alphabet netflix and spotify to name a new but the firm took a new stake in microsoft you can see some interesting moves in big tech. i thought that, you know, these mat -- thematically with evs. >> george soros does not make big decisions without management doesn't have a clue what's in the portfolio. tethawk on the street" back afr is

good monday morning. i'm carl quintanilla with leslie picker u.s. steel, as you may know by now, rejected unsolicited takeover from cleveland-cliffs transitioning on wall street former goldman sachs exec is here at post