yeah, yeah yeah. >> we got to go. sorry, jason, maybe next time. we'll make this episodic and leave this on a cliffhanger. thanks for being on. it was fun today happy -- feels like a friday almost >> almost. we'll see you tomorrow >> i'm excited to watch tomorrow >> are you >> i am. >> get some sleep. >> i will. after that long debate, i was up >> i know you were make sure you join us tomorrow we have a long debate tomorrow, unfortunately. "squawk on the street" is next good thurnz msday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber nvidia's lowout going to boost the nasdaq as the market moves on to jackson hole jobless claims come in the lightest of the month. yields are higher across the board. our road map begins with nvidia's a.i. boom the chip maker delivering that

blowout quarter with no sign of slowing demand plus, we'll talk fed expectations, what investors need to know as central bank leaders gather in jackson hole, wyoming. boeing is weighing on the dow. the shares are moving lower after the company revealed a new 737 max manufacturing defect let's kick off with nvidia, set to open at a record high this morning company more than doubles revenue, raises their guidance, citing a surge in demand for a.i. chips this is jensen huang on last night's call >> our demand is tremendous. we are significantly expanding our production capacity. supply will substantially increase for the rest of this year and next year nvidia has been preparing for this for over two decades. >> jim, no lack of superlatives today. >> no. and look, because i do want to be able to get in, i have everest nvidia this was the dog i named -- i

renamed. jensen huang gave me this one so i could get into headquarters and when nvidia passed away, he insisted that our new dog be called nvidia ragu cramer, and this is so he can get in let me explain to people there's been a lot of misinformation, including a lot of questions that were wrong on the conference call. what's really going on here. this is going to replace everything it's not one of those things where people keep saying, well, what are they going to do with it they've ordered it well, we know what they're going to do with it. they're going to rip out everything else, and this is going to be the only thing that's used in the datacenter. it's the only thing that's going to be used in terms of figuring out how to get something done fast, and people say, hold up, are they double ordering they can't double order because nvidia works very closely with certain companies. if they double order, then they cut them off the cross margins are rather extraordinary. andy

andy grove used to say, if you can get to 63%, that's the holy grail. well, they're well above that. david, what really matters is that it's, as they said to me last night, it is the iphone it's like, if i -- you know, you had a -- let's say you had the pebble -- remember you have the, let's say, you had some phone made by nokia, okay? or motorola. and this comes along there's just, well, what are you going to use this is it and there's never been anything like it except for maybe the iphone, which they did say, look, except for maybe -- they didn't say, well, the iphone but maybe the iphone >> yeah. no one has ever seen anything like this revenue ramp >> no. >> and it's not just demand coming from the hyperscale players, those that we all know. it's alsogovernments think about all the uses for generative a.i >> trillion dollars. >> the money being spent to create those use cases, which we

will start to see, we expect, in let's call it 2024 we've already seen, obviously, microsoft introduce copilot, 30 bucks a month. but there's going to be so much more coming. and nobody's ever seen anything like it, jim it's really -- i know. you say that you reference the iphone moment. perhaps that's the closest we can come to this kind of a revenue acceleration that said, the question that i'm getting is, okay, is there a pull forward in demand of any kind here? or is it really demand that will go on for the next at least two years? >> okay, so, i don't know who asked those questions, because they're actually answered if you paid attention now, i don't want to be belichick, who, by the way, likes taylor swift but what jensen is saying -- obviously, he's much kinder than belichick. they've got another chip that's right behind it. that's the grace hopper 200, and that's the one that's combined that's using -- they have to have a little cpu action

it's 90% gpu, which is nvidia, and 10% arm. but you know, you can double order all you want by the time you get to -- or you can pull ahead it doesn't matter. they'll have a new one i mean, they already have a new one. it's kind of -- what you have to do is you have to think, let's say i want all the -- i got to get all the 386s i can, and then andy grove comes out with a 46, and you say, that was dumb it's like that it's like the progression. >> it will just keep going even when there's competition. let's assume that amd does -- that amd is successful in introducing this chip that they've been talking about >> this is -- david, this is -- it doesn't matter. there's no one that has anything that's near it by the way, when you talk with jensen, what does he emphasize heat he said, speed and heat. if you can make something, carl, that's faster with less heat, and remember, he's trying to figure out what are the need --

what's the need of an aws? aws is trying to get it so that their footprint, their carbon footprint, is smaller. so, you use nvidia everyone wants their carbon footprint smaller. >> he said that in the call. best way for companies to improve their throughput, energy usage, cost efficiency is to accelerate computing and generative a.i >> there you go. >> just by doing that, you're going to offload so much workload off cpus. >> right, and cpus burn hot, so therefore you don't want to use cpus these are much faster with less burn one of the things -- i asked jensen about what he's going -- why he's doing this. he always says, waste. waste, waste, waste. here's something here's doing this for 20 years, he's been working on it. he showed the current model to me three years ago and it was the one where i said, listen, have cezanne paint a

seaescape because he's never done it. this part isn't even out there yet. and he did it and he was saying, everybody should be using it but no one's calling him he had it. that's why he said it's been years. and then chatgpt comes on, and people say, well, wait a second, i can just ask it. what jensen wanted to do is make it so you didn't have to be a computer scientist to be able to do things. that's why adobe stock keeps going up that's people who are not computer scientists that are using it right now to change the colors of different advertising. this is something that is just -- imagine your pc. your pc can be whatever it wants. it doesn't matter. it can be a dumb pc, but it's connected to the cloud, and the cloud is jensen. i said, listen, am i going to buy -- am i going to, you know, get a gpu in this? he said, you know, gaming, yes, if you want to game on a pc, absolutely but your normal pc doesn't really matter what's in there. it could be anybody.

what matters is where it's connected to cloud >> as for the street's reaction today, we finally have no more sells as morning star goes to hold new street high, again, from rosenblatt as they go to $1,100, which is 40 times high 20s, which people would argue the stock got cheaper on a forward basis yesterday. >> one of the things i've always said about nvidia is if you go back and look, like in 2016, if you go back that far and you look at the analyst estimates, they were insane and then nvidia delivers a number, and it turns out the insane estimates were cheap. >> low >> i watched this stock go from a 44 multiple to a 9 >> and that's what i have been hearing this morning, even if there are those who argue about maybe it's pull forward demand or you're never going to see comps of 100% again. the counterargument is a 35 multiple is sort of the lower end of the range, and even on their current trajectory, 35 times 25 estimates gets you a

stock price that's a good 30-plus percent higher than it is right now >> exactly exactly right. now, i'm going to give david a quiz, because david is, of course, the king of "jeopardy!" what is the number one non-web server cloud server, csp, customer number one >> what is the number one -- >> you have to say it in the form of a question, so i can't -- >> right >> i have to give you the answer how's it work? >> i actually, yes, i give you the -- >> yeah. okay >> we can't say answer i said it. >> go ahead. >> what is the -- i don't know >> come on give it a shot i mean, geez >> i'm not following the query >> it's the biggest customer who is not a web server. there.

>> who is it we go to the next contestant >> go to carl. >> i don't have your answer either >> oh my god okay well -- >> you want to go to todd? >> todd happens to be our executive producer if todd knows it, then i would go to him. todd doesn't know it either. okay the answer is, metaverse >> oh. well, but i thought -- >> that's not a cloud service -- >> you're right. it's not a cloud service provider all right. all right. >> david was -- okay, so, amazon's in there and google's in there >> amazon, google, and microsoft, but of course, meta is the -- >> meta snuck in there and david, okay, how much did you wage oh my god, he waged everything carl, you're in. >> better luck next time >> i went all in i do remember this from doing it it's so -- everything has got to be so carefully done in that last round, final jeopardy, i remember >> aaron rodgers could have gotten that right. >> he might have >> the jpmorgan desk today argues that the -- this earnings print is more important than jackson hole because

technology's ability to print profit in a higher rate environment is more important than whatever we're going to -- >> my hat is off to them that's true. i mean, this thing has nothing to do with the economy this has to do with survival i mean, you either switch to them, or go home you don't have the horses. that's -- i mean, david, you can stick with your pebble remember the pebble? the motorola phone you can stick with it. >> that's what you like. well, again, i do wonder on the competitive -- you just don't believe there will be any true competitive threat, because to these chips any time soon. >> he's been working on it for 20 years >> if you are an end user, you want to see some competition here >> he's been working on this for 20 years he was working in gaming he always felt that was important. now, remember, max was on the board of intel, was furious when intel decided to go against

gaming and didn't think that gaming was good. >> do you believe -- i mean, lisa su is a very credible player they keep talking about a chip do you not believe that's going to be anything >> i think it can be something, but i just don't -- >> amd >> i admire her tremendously but they do have something that could be a gpu that -- they have a gpu, but the problem, carl, is that one is much faster than the other, and there's a blueprint to go faster, and lisa su's going to have something. everyone's going to have something, but because of the incredible relations that nvidia has with taiwan semi, they're not going to have a problem making more, and everybody else is kind of just -- >> what about price, though? what about, all right, i got to trade off some performance but it's much lower price? >> well, there's going to be someone who always cares -- david, there's going to be someone who goes to burlington

>> we'll get to burl later >> they have taiwan semi locked up and them samsung if they need more no, of course, lisa su -- i'm just saying, david, that this is just -- it's -- that someone always had something competitive to apple when you go -- you know there's always someone says, hey, how about samsung? this phone flips in half >> i know. >> this phone does somersaults this is going to be in paris against simone biles no i want -- i don't want a phone that's on the balance beam i want a phone that, you know, works. >> all right what about china >> are you even listening? >> i am listening to you i liked the simone biles reference. it was good. and i'm looking forward to paris, the olympics. that's next summer wow. >> stay focused. >> i'm focused china, which has held a bunch of olympics, is that a weak spot for the company? talk about historically being 20

to 25% of their datacenter revenue. can they simply make up for it because of this avalanche of demand >> it doesn't work like that it doesn't work like that. it's a weak spot for president xi he's got to go get friendly with gina raimondo, the secretary of commerce, because they don't need china china needs them i think amazon web services, i think jassy would take every one, every one, and he would build out. >> meanwhile, amazon is also making its own chip, designing its own chip >> i know, some half-assed thing they're doing. >> really? that's what you're calling their efforts? >> everybody needs a chip. big deal i bet you -- here's what i have to say about their chips i bet you can't eat just one >> nice lay's reference there. piper today raises their target on amazon. we'll talk about that in a bit when we get to some other news as well, calls on peloton, estee lauder, adi, williams sonoma, and of course jackson hole the summit is in focus as

investors brace for tomorrow's speech by chair powell don't miss philly fed president harker live and first on cnbc from jackson hole coming up in the next hour. you mentioned the dow futures a little bit lower we'll get to the boeing news as well but the nasdaq, going to benefit omvia. we're back in a moment if you ce analyzing a big bank's data... 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. ( ♪♪ ) ( sfx: people cheering ) ( sfx: stock exchange bell ringing ) ( ♪♪ ) ( ♪♪ ) ( sfx: people celebrating ) ( ♪♪ ) ( sfx: people celebrating )

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seek clues about the path ahead for interest rates jim, we have bullard on the tape today, says this economic pickup might delay the fed's hope for some disinflation. >> well, look, bullard has been dead right ever since he learned his lesson, say, in the 2015-2016 period the economy accelerated. and i don't want to necessarily just have people just go to one particular call, but if you go to the call for snowflake, with frank slootman, he will tell you about the rather dramatic acceleration that occurred in the economy. now, their client list pretty much includes everyone, whether it be retail, whether it's -- it be health care, a lot of health care, which is very interesting, manufacturing, and it was just like something went off. like a bell went off, which just said, you know what? we're nervous. we're not nervous anymore. and i think that frank, in his own way, because frank is a very tough guy, really made you

realize that even from the time i interviewed him when i was in santa barbara for our ceo council, things have changed the attitudes have changed, and it's right in sync with bullard. i'm in with bullard. i'm all in with bullard. >> autodesk as well, going to open up almost seven the trend of some of these signings, jim, is going to reduce the likelihood of our more cautious forecasts. >> has to. they sound like fools if they're cautious i mean, i strive to find industries other than banking, which is hobbled by themselves, that really were in trouble. i mean, yeah, you could argue that some of the retailers didn't do well, but walmart did well so, i'm all in with the idea that we're, david, with the exception of maybe aerospace because of boeing and the self-inflicted, we really have an economy that is incredibly strong you need an auto strike to make this thing slow down

>> yeah. although, listen, i mean, t-mobile just said they're going to reduce the size of the workforce by just under 7% >> i read that too >> people may have seen that 5,000 jobs that's not insignificant >> that's actually big and mike seifert that's very big, and i'm surprised because t-mobile -- >> yeah, it's not an insignificant cut. >> you know -- >> is that also -- is that also actually something that powell wants to hear? >> powell needs layoffs. he needs to get us to 4% >> wages are starting to -- wage increases are starting to trend lower. >> especially for new hires. you've been all about the job hop, the premiums for jobs is eroding. >> the price you get in when you're a worker now to come in is not so hot. i also think, by the way, that because of inflation, you have a lot of people who have these student loans, they got to take a second job they're back in the workforce big, so that's all going powell's way and against it is this wave of infrastructure spend that is

coming that is so huge that, i mean, if you know how to -- i have a -- i happen to have a deere and a caterpillar, and i got to tell you, guys, i'm out of here. the amount of money i can make on a turnpike, david >> on a turnpike >> you're going to join a highway crew >> that 95 deal. i could have been there. forget this job. >> what kind of equipment do you have >> i've got a backhoe, and i know how to use it i actually have been able to lay down a street. i laid down a block. >> do you live in some sort of alternate fantasy world that we're not aware of >> where you're a farmer, investment banker. >> i did a three-quarter-mile driveway with my deere backhoe >> i want to see it. >> okay. i'll give you a picture. >> pictures or it didn't happen. >> guys, you want to do more on this t-mobile right here i think we're going to -- >> mike seifert. let's just call mike i'll get mike on the phone i'll just get mike on the phone.

why are we fooling around with this second-tier stuff >> we're not we're reading his memo >> i'm talking about right now >> and he does say, basically, 5,000 positions. it's going to be back office largely is what it looks like. impacted roles, primarily duplicative to other roles that's what he says. and again, we're not talking about people in the stores retail and consumer care experts will not be impacted he says in a company as successful as ours, the time to challenge the status quo and write the next chapter is while we are still successful. that's how we sustain it we need to move at the speed of technology using data, a.i., and other tools to deliver simplified digital experiences specifically curated for every customer." it goes on from there, but reprioritizing their work and doing it differently, not about foisting more work on fewer people so, in some ways, i mean, not

dissimilar from the conversation we have been having for a long time in terms of the ability of technology to potentially make things more efficient. >> yeah. that was -- that's actually rationalization that we've been waiting for, right all we ever hear about, call center, call center. interesting. >> yeah. but again, t-mobile, 7% of its workforce, there it is that's 5,000 jobs, and again, as we said, carl, we're talking now almost primarily corporate and back office, some technology roles. >> all right we'll take that into account challenger layoffs have come back a little bit, but we'll watch that one closely that's a big one coming up, cramer's "mad dash." we'll count down to the opening bell, get you one last look here at the futures on this thursday morning. "squawk on the street" is back in a moment. from big cities, to small towns, and on main streets across the us, you'll find pnc bank.

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nasdaq 100 gainers won't surprise you we mentioned autodesk earlier in the show with the 7% premarket gain nvidia, though, now at the top of the list. we'll see what happens as we're coming off the first 1% gain for e p t qrter back in a moment

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. all right, let's get to a quick "mad dash. dollar tree is featured this morning. >> once again, david, we've got cost pressure and what is going on well, they mentioned elevated shrink this is obviously a nationwide problem of which nobody's doing anything, because if it really is organized crime, well, we do have -- we have rico >> we've got the fbi >> yeah. well, where are they i mean, maybe they're doing -- >> apparently they are starting a new task force that's very recent >> really? all right. well, they should be into this

thing because the numbers -- i was looking for $1.28. they're going to do much less. the actual quarter was good, so i think that people might come back to it because it is a very good chain at this point in the economic cycle >> let's get the opening bell. at the big board, it is wealth management celebrating the recent listing of its fixed income alternative etf and at the nasdaq, waterdrop, a european hydration brand 4,453 today. jim, we talked about how the dow will get dragged by boeing on this faulty drilling out of spirit air systems >> again, when they made the decision to outsource, to break this company up, i think that it was one of the dumbest decisions ever, because they lost -- they won't agree with that because they did it -- but it really impacted quality control, i

think. and they just don't have it anymore. there's too many suppliers they did this great, under mcenerny where the pars htners to kick in in reality, what happened here is the quality control of their imports, they always catch people but people make mistakes, because it's not as good as the way boeing used to make things and i think that this is still one more thing that boeing has to -- they got to get back in charge of the supply chain, and they seem to not be able to. >> yeah. they say it might delay some near-term deliveries, and they're going to evaluate whether the annual target's at risk now, delivery target. >> look, when you cede important pieces of your company to others, even if they worked with you at one time, what you do is you take a company that has a pristine, fantastic reputation, and you put it in the hands of

others that don't have it. >> it takes me back now to utx and the issues there >> yeah. with that -- wow that strange manufacturing capacity >> correct >> failed. >> for the engine. >> yeah, i mean, look -- >> that is now -- i mean, resulting in mass inspections. >> do you think -- do you ever hear about airbus having that problem? i just think that boeing has to go back to the way it used to be, and i know it's not as profitable, but this is a mess >> utx was not related to boeing as it was to the airbus. >> i just find, carl, that there is a way to look at this thing, and you have to look at it from the point of view that boeing did certain changes that made it so that they could be more profitable, and in retrospect, they will tell you it worked, and as someone who cares about the stock, i would say, you know, i don't really care about your judgment. the market has spoken.

and the market doesn't like the whole outsourcing plan look, i like the boeing people very much, but they're just not -- and i'm not being facetious. it's a great american company. but when you have all these suppliers, i think you let yourself open to how well they're run. now, look, i mean, boeing's had problems with unions boeing's very heavily unionized shop except when they make stuff in the southeast, but i think they got to get back in control, and it's not what they want. no one wants to hear that. people who are listening at boeing are saying, cramer doesn't know what he's talking about, and my mom always said that you went to school here, you went to school here, you finished here, you finished there. if they say you don't know what you're talking about, they could be wrong my mom that's my mom. she was on my team my father, no. my father always said that dave hobbes was smarter than i am >> he was not on team jim cramer >> tough love. >> he was not -- no. he said, david's doing so much better david, who watches the show.

recently, daughter got married, brian roberts at the wedding, and i had to listen. i always heard that dave was smarter than i was i said, okay, why don't you just create a kind of inferiority complex that has me talking about it on national tv right now. >> paging dr. freud. >> why not >> my father told me that i was -- i got a "b" in fourth grade, and he said, that is it that's the end of the bs you come home with another "b," let me tell you what happens and so i didn't. >> there's the story of jim's life in 30 seconds >> that's why i'm a pathetic parody of the human mind, frankly. >> pathetic parody of the human mind okay >> and a dollar sign represented by a man can we please go on? get heme out of this >> i'm going to get you out of it i'm coming back to t-mobile because there is something else in this press release that is worth noting, and it is more

reflective of the heightened level of competition between t-mobile, at&t, verizon, comcast, and charter what it takes to attract and retain customers is materially more expensive than it was just a few quarters ago, writes mike seifert. "we have been outrunning this trend by accelerating merger synergies and building our high-speed internet business faster than expected and outperforming in a few other areas. but he goes on to say, "however, it's clear that doing everything we're doing and just doing it faster is not enough to deliver on these changing customer expectations going forward." so, i thought that was notable what it takes to attract and retain customers materially more expensive than it was just a few quarters ago >> what does that say about the people at att? >> it's one reason why not just shares of t-mobile but verizon and at&t are down. and don't forget the heightened level of competition from the

likes of our parent company with its wireless offering and charter with its spectrum wireless offering as well. they're significant takers right now. they're small, still, total base customers, but they are, every quarter, adding to that, and obviously, t-mobile, on the other side, is competing as he says in attracting and outperforming in terms of building their high speed internet business, which is wireless 5g, essentially you know, fixed wireless >> well, you know, these are -- when they decide to not have -- one of the things that the authorities did -- >> wireless broadband. >> how do you like when the authorities let block sprint -- remember the t-mobile? att deal >> yeah. >> that was a very smart deal by the authorities. >> to stop at&t from buying t-mobile without a doubt. >> that was an example of, i call, first class antitrust. >> there was, from the day one, when at&t said tit wanted to buy t-mobile, there was a lot of doubt they would ever get that

deal done. they did not it helped put t-mobile in business by not just giving them an enormous amount of capital but an enormous amount of spectrum as well, and to your point, jim, they went on to become a key competitor in the wireless industry. so, yes, there is an example of antitrust action that was, without a doubt, important and effective. >> and kept our prices down, and that's what i think that in many ways this combination of a jonathan kanter at justice and lina khan, ftc, want to combat is deals that were -- that would have let that go through but i think that that was an example that worked, and i have to tell you that getting a customer, i actually suggested, okay, this is a little heresy, that t-mobile give out the vision pro in a buy now, pay later. >> i know you have and we've come back, both of us, saying it's $3,500 >> well, if mike was -- >> three times the cost of that. >> well, i mean, buy now, pay

later for a device for it's very competitive, trying to get customers, and this thing that can deal with apple, and i think it makes so much sense >> we are going to get affirm tonight. we'll see what the attitude is about buy now, pay later >> i think affirm -- i think max will do it i think max will pull it off >> i'm curious to know what you think of -- this crazy week in retail, with blow-ups from foot locker, petco this morning, peloton, dollar tree, burl, and yet, a&f, guess. >> williams sonoma wasn't that great. everybody thought that was shooting fish in a barrel, and it wasn't because laura albert delivered some numbers that versus 2019 were very good i have to look at guess because i haven't looked at them in ages because i've written them off. but yeah -- go cover your short, jokers laura albert is better than you. >> little bit of a bounce in foot locker. macy's, dick's, and now today, you mentioned it dollar tree down about 10%

>> dollar tree will come back. they'll come back. >> we have never talked more about theft than we are right now. >> we have to. >> hard to even know what the number's going to end up being across the board for all of these companies. >> i'm surprised you didn't pour cold water on nvidia, up 40, now only up 22 >> we still have time. there's time in the show nvidia shares are up only 5%, jim. >> ha. >> well, it's just a record high sorry. wish we could have done better >> it's not a double record, triple high. >> there's nothing you can do. >> it's a $1.22 trillion market value. >> and jensen huang, with net worth now of $46 billion, is higher than kevin griffin or steve schwartzman. >> that's going to make steve sw schwartzman very angry >> you know who could kill us? jensen huang he just wants to put a man on mars in four days. >> excuse me >> well, he'd like to put a man on mars very quickly >> in four days? well, elon musk can help him do

that >> there's a terrace going on there. there is latin? you don't speak latin? >> that was a great use of the word will you use it again? a potential partnership? >> do you see pope john xxii when he came >> what is -- what is this >> going to latin. we haven't talked about snowflake yet. >> no. let's talk about it. you talked a little bit about your flying dutchman friend. >> we got to do splunk too >> gary still comes in there we never really found out what happened with doug, the previous ceo, but this is a company that almost all the people i deal with say, i don't know what they're doing. i mean, they're out there doing something. and i'll tell you what they're doing. they're taking your customers. they have the dashboard. i said -- oh >> sorry >> ugh i wanted gary on, and what happened

just -- i should not -- never get involved with the actual bookings >> don't let that side track you. finishyour thought >> i should have had gary on he's terrific. he comes in there, he's got this incredible business. people think he's just going to sell it. what he does is turn it around, makes it very exciting for people, and you know, toma bravo would like to put together a company that's as good as splunk >> on that note, they did complete the forge rock acquisition without any doj. >> they're like roark. >> yeah, roark and subway. private company but one of the larger deals we've seen. >> boy, they're running quite an assemblage now >> there were questions there about antitrust. >> does lina khan know about it? >> they had real competition from tdr, sycamore they were together and goldman-sachs. but $9.6 billion the was a big

price for subway >> they're going to own dunkin and sonic and subway >> buffalo wild wings, which sally smith was not happy when that one happened. >> they bought that one too. >> that was put into play by some second rate -- >> roark is a major player >> can you get them on the phone? >> no, not really. i can't get them on the phone. i mean, i guess i could try to get them on the phone. there was a name -- there was another name out there very briefly, also private, jersey mike's, that i was hearing might -- there might even be a bid for. i don't believe that went anywhere >> very few calories in a jersey mike >> i don't believe the gentleman behind that is any longer considering that at this point but i had heard that name. >> i'm beginning to think -- i'm beginning to think that what's happening here, just to kind of segue, is i got a jackson hole vibe here. >> what does that mean >> the stocks that should be up a lot more are not i'm thinking it's jackson hole

maybe jackson hole's a little more powerful. >> you think that's why yields are higher, even as -- we've got the worst durable print in three years? >> i got to tell you i think that people are saying, all right, nvidia, enough already. bring on jackson hole. i mean, got bonds going the wrong way. i don't know >> you see j&j ke kenvue has gotten a lot of love lately >> yeah, and j&j not so much we haven't heard much about talc lawsuits it's been quiet. i'm reading that kenvue has been losing share >> today, goldman ups to buy 29. >> yeah, look, i mean, it's possible, because now they're being laser focused, but they have been losing some share, and they actually talk about skin health and beauty segment share losses driven by u.s. mass facial care category i mean, that is a jump off global skin and health care. >> it's five times cheaper,

turns cheaper than p&g and 3.1 times turns cheaper than cogate. >> i thought it was interesting. i would like to -- what do we got dividend-wise? we don't really -- they've got a different -- they look at a big dividend i don't know, david. >> that said, skeptics argue the company's track record of share losses provides justification for the discount >> tadavid, maybe they were too busy looking at pharma and medical device maybe this is one that when it's on its own -- >> the old shrink to grow is going to work? >> yes man, i'm missing everything. >> you did mention oil >> yeah, chevron >> crude, back to $78. we got some pretty robust production numbers yesterday nat gas down this morning on the lower likelihood of these strikes in australia >> it's really -- >> helping out the european. >> it's very weird because rusty brazil is my go-to goo

the russians are cutting back how much they're producing, rather substantially, and we also are betting there, betting on a warm winter in europe they may need all the lng they can get. it's a little kocounterintuitive right now what's happening in the oil market >> nvidia being up only -- clearly coming in, it's not as though the stock had been a laggard in any way, but that was so far above what anybody anticipated and it's only good for 3% >> like i said, we're on to the next, and we'd rather focus now on things that indicate that the fed may raise rates so significantly that you have to go buy a walmart or united health you know >> one name, jim, i know you pay attention to is e.l., which is higher today, despite bernstein cutting their target by 110 bucks. >> there's only two people who are left recommending estee

lauder and now, i think that people have to recognize, for lisa, it was -- the ceo -- long considered the dean of the packaged good group, and he got so many things wrong, but the chinese -- he became very dependent on china, got duty-free wrong, got is going to korea and bringing back project to china wrong he got heinin wrong, kind of like the vegas mecca, and those were just mistake, mistake, mistake. he's paid the price. now, people with just two -- with just two buys now, it's starting to come to the point where it's kind of derisked. because there's only, you know, look, deutsche bank hasn't really changed yet, but we got a lot of guys who have just -- it's been just a -- it's rats running from a ship there. there will come a time when it's actually right to buy, but it has to have nobody left. it's got to be like only aaron,

right? >> i haven't heard you be so critical of him. >> well, no. i'm just saying that he got a lot of things wrong. i respect him tremendously he's been -- i would never have him in my travel trust he's made a lot of money over the years. >> i know you did. >> holy cow. i think he would be harder on -- believe me, he's harder on himself than anything i could say. he is. he's harder on himself he's like jalen hurts. >> does he squat 600 pounds? leg press? >> when i saw jalen hurts, he was apologetic because i bumped him in the locker room, and i was like, of course, i was star struck, but you know, he's very hard on himself. he's the quarterback -- >> i'm aware of who he is. i'm on top of it >> he's very hard on himself, harder on himself than anyone and i think he is other than mahomes, maybe the greatest athlete playing now. >> he's amazing. dow is up 50 here. watch bonds today. we will get some fed speak in advance of the fed chair's

speech tomorrow. balance sheet at 4.30% this afternoon. ten-year still elevated, although pretty big drop in yield yesterday, more than 10 basis points we'll be right back. ( ♪♪ ) feel the power of osteo bi-flex®. taken every day, it's clinically shown to improve joint comfort in 7 days, with significant improvement over time. ( ♪♪ ) you founded your kayak company because you love the ocean-

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time for jim and stop trading. >> carl. one of the things the worst stocks this year is discover financial. very interesting, wolfe comes out and says it's done, go buy it they just think it's been overly sold and that there's actually a pretty good business model and the reason i like this, you mentioned affirm tonight, these are companies that are more riskier. the ones that i think that the federal reserve would love to see just say, take risks like that, you're going to get hurt, it hasn't happened, but i think this is a very gutsy call. i would not go with it i think discover has some answering todd to do for what they did previously to merchants but, but some people can't reresist bar begins. in this market there's always an analyst that says i have to take advantage of it.

if you want a bargain take advantage of nvidia. >> you think it's a bargain this morning? >> if it's down yeah look, there's a lot of hot money in it taking out just buy it after the hot money is out buy it. >> when is the hot money -- hot money? >> when the stock is down. hot money. >> that's what they call hot money. >> all right. >> like guys, you've seen them on tv -- >> move a lot of hot money a lot of stocks that the -- the recession stocks are doing well, like smuckers doing well, that's a recession stock. kimberly clark is doing well. >> williams-sonoma, constructive note of bofa looking for basically rate cuts going to help housing, help housewares. >> i think so. watch proctor. i was going to say watch j&j my problem with j&j they have the talc issue watch proctor that's come down viciously. kellogg is splitting off

that's a very interesting situation. general mills has a problem. the dogs have been trading down which is ridiculous. dogs are trading down. can i -- i've talked -- look i had to -- i got nvidia nvidia is trading down right now. give me a break. i'm a buyer. >> we didn't get petco is down 20%. >> you know what, nvidia don't care for petco he likes just food for dogs. the stuff looks good i've had it. top flight. >> you've had -- >> when desperately hungry you're hungry. >> >> i thought it was bird's eye. looked like a burger. >> pet food. paved my own driveway. it's incredible. >> i ate puperoni. >> we got to go. >> we'll see you soon. jim cramer this morning as the dow is turning around, early session highs up 170 more reaction to nvidia's

results and philly fed president like from jackson hole in a moment

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good thursday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber, seema moody live at post nine of the new york stock exchange sara eisen has the morning off the nasdaq was looking to outperform premarket, but that story has flipped. the dow up 0.6 financials up 1% we'll talk about that as a very important day takes place tomorrow we'll take you live to jackson hole, wyoming, first on cnbc interview with philly fed president patrick harker as jackson hole kicks off. >> 30 minutes into the trading session and we are -- we get to nvidia in a moment here are other big movers. snowflake losing early gains following the latest earnings beat the company's cfo warning on the call that company's forecast assumes their largest customers will, quote, continue to be a growth headwind. the stock down about 3%. boeing shares under pressure following new manufacturing defects involving suppliers spirit aero systems. more details later this hour the stock is down right now. dollar tree, the latest retailer getting crushed

post-results third quarter earnings guidance well below expectations despite a beat on the top and bottom line we're looking at dollar tree down 9.4%. guys >> but we are focused on, as you might expect, nvidia, which, of course, is, you know, you could argue the most important single stock in the market at this point given the expectations that it came in with in terms of earnings, blowing them away on what it reported, and its guidance none of which seems to be good enough to get the stock up more than a couple percent right now. joins us sort of on the street's re reaction which has been uniformly positive but we've been noting the muted reaction in the market itself. >> up 232% year to date, so -- >> but i mean those numbers were so far beyond even the incredibly raised expectations >> we haven't seen anything -- >> year over year --

>> all these analyst saying they haven't seen anything like it. they're using every single word possible to describe ah. blowout, superb. nvidia blew it out of the park with the report, and that's why we're getting price target and earning estimate updates boosting the price target to 1100, nvidia just getting started. there are 14 other price target adjustments from oppenheimer, 650 to 5 finds, baird at 750 now. more cautious morningstar to $480 a share from 300, saying they don't think the gpus are a one-time cost. dan ives, quite chatty, saying this a.i. demand story is real and something we haven't seen since the iphone and the internet, 1995 he writes nvidia is a table pounder to own tech stocks across the board with the earnings, earning adjustments and the stock bump,

we are seeing the forward p/e ratio i checked about 55.6 right now times, still much lower than the 80 times in may as the denominator. math increases the valuation for the expensive stock becomes more justified. out of all of the reports i've seen this morning i've narrowed it down to three themes. firstly, it's not hype a.i. is bringing in the money. secondly, nvidia's ceo and cfo say they have supply into the next year, calming fears about constraints. lastly, china is still contributing 20 to 25% of total revenues and that's with u.s. eggs port restrictions and a more watered down a.i. chip. to your point all huge reasons as to why the stock could go, what, 3, 5, 10%. we're only seeing it 3%. it's odd it's not higher. >> seems muted given the enthusiasm that greeted those numbers and not without reason, of course. there was at least, when i talked to a couple of investors this morning, that kwef well, are they pulling forward demand in some way.

the answer many would say is no. we have another 18 to 24 months ahead of you where you can just see them barely meeting demand, if they can, in terms of capacity for manufacturing the likes of tsmc and those arguing even at a lower range of its multiple over the last year is at 35, 35 the lowest i think. >> okay. >> you can argue for 30% growth in the stock price from here that said, i'm curious about competition and you've reported a lot on this. amd in particular, is that real? >> yes 100% it's real. they've been working on that chip for some time the mi-3,000 x, supposed to be out in q4. the real part is the timing. will they be on time. >> will it represent a competitive threat >> yeah. competitive threat at a cheaper price, which is the alter -- you're shaking your head no? >> i was talk to - >> oh. >> talking to j.k. >> it's not cheaper. it's expected to be cheaper and may not to a certain degree --

what's missing out of the amd is the kuda software where nvidia has a stronghold because so many -- everybody uses that software amd has to step up the game. that could be a pitfall. it is going to be a cheaper alternative? what this market wants when seeing some of these chips at $40,000 a pop. you need thousands of them to run large a.i. systems. >> yeah. >> which goes to the point of why nvidia - >> a first mover event. >> he's calling it a $1 trillion total addressable market because there's dploeblly $1 trillion in all of these data centers but enough to convert to accelerated computing and generative a.i there's an opportunity not just for him, jensen huang, nvidia all these other players are coming in as well as the in-house chip makers, amazon, google. >> more to focus on the training, the a.i. inference which is spitting out the answers and stuff like that.

so that's something of a threat we need to consider in the next year. >> see how long it takes. >> yeah. >> thanks. >> market clearly shifting foc let's get to jackson hole where our steve liesman is sitting down with philly fed president harker hey, steve >> carl, thanks very much. i am here in jackson hole with philadelphia fed president patrick harker, something of a tradition we started few years ago, by the pandemic, and here we go again. i want to start off with one of the big questions out there, we've had strong growth, growth above the third quarter looks very strong, and yet we've had declining inflation, which is not what the theory tells us should happen. my first question, is that a problem that you think has to be leaned against >> i don't think so it at this point. we have to deal with inflation and we are we have a restrictive stance in my view and we should keep it there for a while. we can talk about that but in terms of gdp growth and

low inflation and low unemployment, where have we seen this before? before the pandemic. so there are models but then there's the -- what we've experienced in the past. we've experienced the situation. is it possible that we can get back to there? yes, i think so. >> the idea, though, was that you need to have -- chair powell said this last year, we likely are going to require a period of below potential growth to bring down inflation what do you think is happening in the economy that is allowing growth to remain at or above trend but also inflation to come down >> so i think a couple things are causing this one is, we are probably seeing a little uptick in labor productivity, hearing that from our -- we'll see how the data plays out. we're not completely clear on that but otherwise, again, the situation is there before. so what were we seeing in 2019 i mean roll that forward to

today. those same dynamics that were in play then, can be in play now. >> let's talk about some of the -- we can go headwinds or tailwinds to the economy we'll start off with the headwinds. how much concern do you have about tightening credit standards and impact on the economy? >> i've been out and about in my district talking to community bankers, business leaders. there is a tightening of credit. it starts with banks saying you know, new customer i'm going to hold my liquidity for my existing customer, hearing that a lot. how deep that goes, we don't know yet but there's clearly been a tightening. >> what about when it comes to higher interests right now the recent surge in the 10-year yield is that something that causes you concern for the economy? >> or it helps it helps cool the economy some it could go both ways. at this point i'm not overly concerned about that, and -- because, you know, there are a lot of factors that go into the yield curve beyond monetary policy. >> right.

>> and global makesrkets. it's something i'm watching. >> credit card delinquencies and the consumer >> they are starting to tick up. our consumer finance institute tracks this carefully. we're ticking up but still not beyond where we were prepandemic. if it gets worse than that, we start to worry. >> what about the consumer are they slowing down? >> yeah. the low income consumer is clearly slowing down i was tog talking to one of the major suppliers of the back-to-school market and he's seeing a softening in demand we are starting to see some things soften. >> to the policy thing in a second, you believe this spurt of growth is going to be temporary. >> we'll see we have to look through one quarter. >> sure. >> you expecting a slowdown in the economy? >> eventually yeah back to trend growth 2%. going to take a couple years maybe. even sooner. inflation coming down under 4% this year then 3% and 2% it's going to take time as well.

>> let's turn to policy. have you done enough >> we'll see we'll let the next couple weeks play out in terms of data, but right now i think that we've probably done enough because we have two things going on, right. both the fed funds rate increases, they are at restrictive levels, keep them there for a while and we are continuing to shrink our balance sheet. that is also removing accommodation. >> have you done enough to bring inflation down you still have inflation in the core pcu run nearing 4% or 5%. >> we are in a restrictive stance do we have to keep going more restrictive. i'm in the camp of let the stance work for a while and let this play out for a while, and that should bring inflation down. >> what do you -- what is it about your colleagues who seem to want to increase rates more do you think they're on the wrong side >> we're all seeing the same data and hearing the same things what i've heard loud and clear through my summer travels, is

please you've gone up very rapidly. we need to absorb that, right. we need to take some time to figure things out. you hear this plea from community banks loud and clear i'm hearing it from business leaders. let us absorb what you've done before you do more. >> seema has a question for you back at hq. >> thank you, steve. president harker, on the labor front i'm curious how much of an increase in the unemployment rate would you say is acceptable or realistic in order to allow inflation to continue to moderate in the coming months? >> so what we're looking at is unemployment ticking up to probably around 4, maybe north of 4%, but that's the natural rate in our view it's not going to be outsized what you would normally expect in the economy >> so let's continue with that when you look at claims like 230, don't seem to change, and then you look at wages, stil

seem a little bit high, are you describing the labor market as tight but even more than that, do you still seem to think you need the labor market to loosen up to get better results on inflation? >> first, are we seeing it loosen up? i'm hearing it is throughout my district as it easier to get workers. now, some companies are going part tirnlgs right they're a part time to hold on to them. not just that they have a job or not, how many hours they're getting. we're starting to see some of that i think that the labor market needs to soften some, and particularly in the service area but again, there's one other thing we haven't talked about that i think is going to drive potentially some of the service demand we've got other things happening next month, the month after. we have student loan payments kicking in again that will a psychological effect on people going out to bars and restaurants and i know from some

of my contacts in that industry they're starting to be worried about that. >> that's going to be something that's going to hurt the low end again, something that would. >> yeah. >> another thing on my list here is a.i. >> yeah. >> and one of the things i like about you, patrick you're not a ther ra test but you are in contact with business all the time what are you thinking and hearing about the impact of a.i. on the economy. >> i'm an engineer, right. i'm a technologist, in my old days before i did this job a.i. is clearly innovative, it's going to add to productivity the question for the economy, is it going to do that in a way that is outsized other innovations we've seen in history? >> armageddon. >> is armageddon going to happen >> i'm in the camp of i don't think so it's going to have a real effect and it is having a real effect, but it's not a panacea none of these technologies are what we need to change the way we work and work with this tool? we did this with robot, did this with pcs.

>> we lived through it and learned to adapt. >> the title of the conference here is "structural change in a global economy." i want to ask you broadly what's different, but specifically about china. china has these type of one month of deflation, import prices from china are coming down is that something that's going to help the u.s. inflation story? >> maybe it could hurt in some ways in terms of overall global growth, right. we don't export a lot to china, but there's other places we export to that, you know, there's that - >> right. >> that network effect what's changed fundamental in the economy. i ask myself this a lot. supply chains are being reengineered. >> some back domestically. but we have challenges of labor. we don't have the labor necessarily to support that. so there's going to be some bumps in the road as we reengineer the supply chains long run, you think about china

and other places, an old colleague from my old days, an a academic, prominent kept beating into my head, demographics is history. demographics is the economy. i think you look at the demographic trends we're seeing in the world, that has profound effect on how the global economy is going to evolve. >> want to talk about something else that seems to have a profound effect. the fiscal side. i know how much you fed folks love talking about the fiscal side on the other hand you have to deal with it something that's out there what do you say about the sustainability of the deficit right now and what needs to be done on the other side the other thing is, i'll come back to the follow-up question what about the sustainability of the deficit? >> we all know it's not the deficit, it's deficit relative to gdp if we continue to have trend growth or a little above trend growth for a while, that would help get us out of the situation. adding more to the deficit is

not going to help that situation. the math is very simple. >> do you wish that the fiscal side would join you in the fight against inflation as in getting their act together to reduce their spending >> i think at this point, i look at the situation, and again i'm not in the fiscal side. >> right. >> i don't see a lot more spending coming out right now, at least from the federal government in the near term. i just don't see that in the cards. >> just wrapping up, i would like to get your thoughts on this time next year, where is the u.s. economy, where is inflation? how are we doing this time next year >> i think we have inflation at near or at 3%, moving slowly to 2 in 2025, moving toward trend growth in gdp and unemployment ticking up in the 4-ish range, not significantly more than that. >> i left out a question and you didn't answer it voluntarily, which is what's the funds rate doing? are you into cuts this time next

year >> so this is point i see us staying steady throughout the rest of this year. then we'll see the data evolve if we see inflation coming down quicker than what we expect, then wemight cut sooner than later. we have to let that play out. >> sooner the first half of the year >> we'll see i can't predict that right now really we're in a situation where inflation is -- we tried to predict it and predict it, i need to actually see it moving in those directions before i would be willing to make a cut. >> patrick, thanks for joining us >> thanks. >> patrick harker, philadelphia fed president, live from jackson hole here we go, guys >> steve, thanks steve liesman this morning in jackson hole let's get instant reaction with moody's chief economist mark zandi. mark, great to have you. i wonder whether or not that view from harker that we've probably have done enough for now, contacts say let the economy absorb some of these hikes, is going to be the

overriding consensus coming out of this symposium? >> well, carl, i hope so i'm sympathetic to what the president said you know, growth is slowing. very clearly i think at best we're at trend growth, probably a notch below that inflation is clearly moderating. all the trend lines look, you know, very good there, as the supply from the pandemic and the russian war fade, that allows the inflation rate to come in without generating higher unemployment the president did mention the banking system the banking system isunder tremendous pressure. it's stable because of the policy response back in march, but as long as the fed keeps its foot flat on the brakes the operating environment for the banking and financial system are difficult. that says hey, we've seen enough, let's just stop raising rates and, you know, we can change our mind, they can change their minds next year but at this point they've done enough.

>> president harker didn't really emphasize or clearly articulate when rates would potentially be cut next year, but what do you think the trigger points will be, mark >> you know, seema, i think it's inflation in the 2s. core inflation that has a 2 hand toll it. if it's above 3, i think they will be reticent to cut interest rates. if we're in the 2s, high 2s, all the trend lines look good, i would anticipate it that they would, i think at that point they'll start easing monetary policy and by my forecast that's probably next summer you know, zune in that period i think they'll have enough evidence to suggest they should start cutting rates. not fast slowly a quarter point each quarter maybe 50 basis points each quarter, but it will take time to get the funds rate back down to the so-called rate. by the second half of next year they will be cutting rates. >> mark, steve and president

harker talked about the fiscal side, but didn't get to all the spending that's about to hit from the infrastructure bill, the ira, you know, many of these, that money is just about now. what do you see as the impact in terms of, perhaps, the other side when it comes to wages and/or demand? >> well, david, you can see it you can see it in the manufacturing construction data. you know, that's up a lot because of the chips act you can see it in public infrastructure spending back to the infrastructure law the ira, inflation reduction act, starting to kick into gear. over the course of the coming year, that fiscal support will probably add a quarter point maybe 0.3, 0.4 to gdp. in my view that's propitious timing because you have other headwinds that will hit. president harker mentioned the student loan debt, potential government shutdown, which seems more likely than not, you know, you've got potential strikes at

uaw. there's a slew of headwinds and tailwinds and you add it up, seems the economy is going to be growing close to its potential or south of that just exactly what we want. i view the fiscal support here as being well timed. now, obviously, these fiscal policies aren't really designed to impact near term. these are about long-term economic growth. the supply side of the economy public infrastructure, addressing climate risk, making sure we address our national security interest with regard to the chips act. these are things that matter in the long, but in the near term will add growth. i think that's well it timed. >> mark, global pmi this week were no good anywhere, really, then you have durables today with the lowest preliminary print in a few years do you think atlanta fed has to come in closer to consensus? >> it will come in, carl it's based on i do the same tracking model and our estimate at 4, not quite what is atlanta,

5.8. >> it will come in only because it's -- so far we only have a few data points, you know, for the quarter and that's what it's using to come up with that estimate i haven't looked, but you mentioned the durable goods number, nondefense cat goods, transportation, keys window on investment, down maybe flat, and that's been flat since this time last year. i expect we'll see that come in. my actual forecast for q3, 2023 gdp growth is about 2%, close to the potential. that will come in. >> yeah. a lot in the 2 range that's for sure. it's going to be interesting tomorrow mark, really appreciate the curtain raise. thanks. >> any time. take care. still to come this morning, a lot more on nvidia's big beat, even though the nasdaq has briefly gone negative. did send shares to another record high. got swings today dow up a couple hundred,ack bup 41 a big show still ahead

don't go away.

we have excellent visibility through the year into next year and we're already planning the next generation infrastructure with the leading csps. the demand, the easiest way to think about the demand is the world is transitioning from computing to accelerated computing. you're seeing companies

recognizing this tipping point and diverting their capital toimts accelerated computing and generative a.i. >> that was nvidia's ceo jensen huang with his bullish outlook the shares, all-time high. it was an incredibly strong quarter and upbeat guidance suggesting 170% profit growth for the current quarter. here to discuss wolf research chris caso are you surprised somewhat muted response in the market to what were unprecedented numbers >> expectations were very high going? and frankly, what most people were worried about coming into the report after last quarter's exceptional results and high expectations, would they be able to meet it again some. i think they met the

expectations and what they said last night, i think it gives a very good indication to continue to be long the stock. >> yeah. your price target now is $630. how do you get there >> so we're seeing a path to about $20. our numbers next year are more conservative than that on the run rates they're on now, with the assumption they do sequential growth in the data center segment for the next several quarters gives you a clear path to $20. that puts the stock in the mid 20s multiple or so, which is not unreasonable for a stock that has had close to a 35% revenue taker for about 7 years. again, with a.i. that looks likely to grow on the same point, what i think is exceptional about nvidia is, that despite the -- you don't find companies that are growing this fast that also generate a

lot of cash. next year we expect them to generate $40 billion worth of cash flow, talking about a 3.5% cash flow yield which is still pretty exceptional for growth stock. >> let's bring in mizuho into the discussion you raised your price target from 530 to 590 a share. talk about the china opportunity. ceo jensen huang crees opportunity there and you're seeing demand increase, but do you think this gets the attention of china hawks this morning? you could hargue this help is helping china's advances in artificial intelligence with its less powerful chips? >> thanks for having me on, seema. when we look at the china opportunity for nvidia, that is a market for the -- there but they will abide by what u.s. restrictions are we have seen them kind of look

for their gpus to kind of -- to the u.s. so as long as they do that, i think we are fine. i mean, but you're right, there's probably an a.i. industry there that's growing very fast and multiple applications that can be pushed. there are restrictions there i think we believe nvidia is following those. in general, i would say the market to grow globally by far the biggest bang for the buck in the u.s. for hyper skillers and cloud and enterprise. >> chris, what do you think? is the opportunity in the u.s. so large, even if the u.s. does implement further export controls on china, that it just doesn't matter or does it of course coming ahead of commerce secretary raimondo's trip next week to the company? >> the company did address that in the earnings call last night. they said there's so much demand in the market right now and they're supply constrained, even

if additional sanctions were put in place they couldn't ship to china it wouldn't have a material impact on results because demand is so far ahead of supply. longer term, this is just about the global -- not even just the demand for a.i., but it's about the rearc it texting of data centers to include acceleration, plus a.i. is by far largest application for that what the company talks about a trillion dollar worth of data center servers out there right now and the company feels like every application will be accelerated at some point and you need nvidia's chips to affect that acceleration regardless of what happens in china there is a large runway. >> on that note, particularly in terms of in the data center, as cpus get replaced by these chips, who are the losers? >> i think what we're seeing is spending in the data center enterprise markets basically

skew from compute to a.i slower growth in the amds. but they are chasing the a.i. market as well they're behind but chasing the a.i. market. you have seen a.i. be the focus and if you look at nvidia, the data centers have grown 10 x in the last five years and 40 million today and we expect that market for nvidia to grow 10 phy x in the next five years this massive spending dollars moved to the a.i. side, that's at some expense of the compute market. >> okay. so i mean, to the extent that capex spending doesn't go up that much, it shifts, there are going to be lost losers who don't necessarily have the ability to compete at this point or the next year or two,

correct? >> i wouldn't say losers what you're going to see is the cpu side will get dragged along because you need some level of cpus alongside the basic or the gpus you see the cpu market grow, but probably not at the rate that they would have if they had gotten the full effect of that budget, right. some of the dollars are definitely going to a.i. for sure, yes. >> got it. guys, appreciate it. thank you. >> thank you as we head to break more retailers on the move this morning. petco plunging on weak guidance. burlington lower after cutting its full-year outlook. more earnings from "closing bell," ulta, nordstrom and gap and others s&p 500 down 9 points.

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i'm sylvan na henao and here's your update silence from the kremlin on the reported death of wagner mercenary chief yevgeny prigozhin. russian officials say all ten people on the private jet died when it crashed in russia

wednesday and pro-wagner telegram channel says prigozhin and his top lieutenant were among the dead russian president vladimir putin did not mention the crash in public appearances today. apple, a surprise move is backing a right to repair bill in california. the measure covers both consumer electronics and appliances in a letter to state lawmakers apple says it supports the bill as it offers people the ability to repair their devices at home with rental tools. and more people call out sick, august 24th, than any other day of the year. a study by flamingo helps companies manage absences, analyzed data taken by workers over the past five years, the biggest excuse for calling out today, coming down with a stomach bug. david? >> yes the ubiquitous stomach bug thank you. as we head to break, keep an eye on t-mobile. shares not doing that much, but we did get an announcement of 5,000 job cuts, 7% of the

company's workforce in a memo from ceo mike sievert, he indicates the cuts will come in corporate and back office some technology rolls as well, but i thought this was interesting too, middle of the memo, what it takes to attract and retain customers more expensive than a few quarters ago and we've been out running this trend he says by accelerating merger synergies and building high-speed internet business faster but said it it's clear cog doing everything we're doing and faster is not enough i thought that was an interesting addition to why they are under taking cuts. $450 million the pre-tax charge taken in the third quarter of 2023 we're back

. >> that has a profound effect on how the global economy is going to evolve. >> welcome back. that was philadelphia fed president patrick harker discussing china's impact on global growth. for more let's bring in goldman sachs chief global equity strategist peter oppenheimer great to see you today. >> and you thank you for having me. >> you heard harker there a voting member sort of downplaying the effects of china on global growth, but tell us how you're modeling china's effect not just on the fed decision but powell's speech but the deflationary effect this could have on other parts of the world. >> absolutely. i mean china is clearly going through some weak cyclical factors and major structural headwinds to growth. to the extent that it is actually having more of a disinflationary effect on the chinese economy that is helping

to offset some of the more inflationary pressures we've been seeing in many of the western economies. so that extent from a global perspective i think it's reasonably positive factor that being said, of course, it is a very important part of global gdp and indeed both supply chains as well as demand for a lot of companies, particularly from areas like europe where i am now sitting, and that is having a dampening effect on the near term cyclical growth pressures outside of china as well. i think in that sense it's a bit of a balance. >> it's been a tough month for global stocks, not just the s&p 500, but europe, china, under performing if the economy here in the u.s. still moves in a direction where it's growing, but that also elevates the risk of higher inflation, how does that complicate efforts by central bankers in europe and japan not to mention >> well, i think this is largely been our central view for some time, the economies are more

robust than perhaps many investors had assumed. we don't expect recessions in the u.s. or really elsewhere, given strong labor labor markets still and pretty strong private sector balance sheets. on the other hand, while inflation is coming down, it's probably not coming down quickly enough to trigger the kind of interest cuts that financial markets have been pricing in so good news on the growth story on a relative basis, but that does mean that we've probably got higher rates for longer and that, of course, is having a differentle effect across different types of markets and industries but i think the increasingly pricing in prose text that rates may need to stay higher for longer is really part of what's triggered this recent pull back in equities. >> does that mean the u.s. is the best house in this neighborhood where would you be putting your money to work now, whether here or overseas?

regionally we have a neutral position the u.s. is benefitting, clearly, from dominance again of its technology sector, from very strong results coming through from leading tech companies, but on the other hand it is expensive both relative to its own history and relative to other markets. so what we have is a relatively neutral position now across the major regions and really focusing more on themes within markets. in particular, identifying areas that are relatively cash flow positive, strong balance sheets, stable, and high margins, and, of course, a lot of that you find in the u.s. and in the technology sector in particular, but there are pockets of it in other markets as well. we would have a more diversified regional exposure perhaps than many people have been used to over the last few years.

>> peter, givie me a little bit more on china. i'm curious to get the house view how bad is it? we see so many different data points, but it's difficult to understand what's going on on the ground there what do you think is happening in that economy? >> there clearly is a lot of weakness in terms of near term growth momentum. the labor market is weak there, very different again from what we're seeing in the u.s. and indeed across europe and japan and we do expect to see more easing we've lowered our 2023 and 2024 china policy rate forecasts to 1.7% because we do expect more easing measures to come through in the coming months to, you know, really counteract this growth headwind, but in many ways what china is experiencing is a little bit the opposite of what we're seeing in the u.s. in particular, but also across europe, which is tight labor

markets, more persistent core inflation, and actually, pretty strong consumer markets which are holding up growth overall. i think the focus in china will be on trying to moderate policy to sustain growth, but it will probably remain on a much weaker path over the medium term. >> yeah. the headline i think in the "times" kind of sums that up trapped in a spiral of deflation, chinese surrender to the spare. we're definitely feeling that moment i am curious about your view on the uk retail sales this week, the pmis, trouble with the pound how much are you worried about the uk going into recession? >> well, despite the gloom around the difficult policy choices in the uk, given that inflation has been consistently high and interests have increased a lot, therefore

leading to some downward pressure in parts of the economy, it has been holding up well again, there's been a strong labor market, consumption and consumer confidence has been holding up there is near term weakness and that's true across the rest of europe as well, particularly in manufacturing areas of the market, but services overall are still holding up quite well. the persistence of inflation, though, has got to be still the central focus for the central bank in the uk and indeed across the rest of europe, and we do expect further rate rises to come through whereas, u.s. rates we think have peaked, we don't think those come down until next year, across the uk and rest of europe we think there's further rate rises to come. after that we'll see rates remaining at higher levels, really until probably late next year. >> fascinating times for central bankers around the world thanks for walking us through it

peter oppenheimer of goldman sachs. >> thank you coming up in the next hour we'll continue our jackson hole coverage with former governor randy kroszner, one of the top gainers with nvidia, the ceo of auto desk is with us on the company's latest earnings and revenue beat that begins at the top of the hour with the dow down 70. stay with us

watching nike again hoping to avoid 11 straight days of losses. not helping out the dow, which is being weighed down by boeing as well. down almost 80 points.

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boeing is the biggest drag on the dow this morning following new issues with its 737 max planes our phil lebeau joining us with the latest phil >> what we're talking about here is a manufacturing defect from a supplier of the 737 max. and here's what the issue is these are holes that are drilled into the aft bulkhead section of the fuselage that were nonc nonconforming. in other words, they didn't live up to the expectations set by

the faa in terms of what the compliance they have to reach. it impacts some 737 max-8 model. the boeing is not sure how many may be impacted but it's important to note, it's not a safety of flight problem the maxs can continue flying near-term deliveries are likely to be delayed. production is not changing at this point that's why you don't see shares of boeing under even greater pressure currently they're building 31 a month. they're in the process of transitions this summer up to 38 a month. that is still the plan and by 2025-2026, approximately 50 a month is the expectation that boeing has set for max production they are also not changing their delivery guidance for all of 2023 when it comes to the 737 max. remember, they are expecting to deliver between 400 and 425 this year they were ahead of schedule the first half of this year. they're not changing their guidance at this point one other reason the shares

aren't under pressure. not the same story when you take a look at spirit aero systems. we're showing you a five-year shart. while spirit says it is investigating this issue because of a supplier with these nonconforming holes that were drilled into the aft bulkhead, we're showing you a five-year chart because we're going back to levels we last saw at the end of 2020, carl. if it drops much further, then you're starting to look at levels we haven't seep for spirit going back to 2012-2013 carl >> we'll watch it, phil, with your help. another name on the dow to watch is disney. on no real news but within a few pennies now of a post-covid low. and dow jones this morning points out disney shares haven't closed below $84 since 2014. you'd be looking at a nine-year low on a closing basis if it can't rally here 15 cents, david. by the way, all-time high, $202. down about 58% from there.

>> no, it wasn't -- i mean, it is a while back when its market value was far ahead of netflix's. netflix eclipsed it yet again. they've gom gone like this that is a sobering reminder of the challenges that remain at disney we saw the last quarter. we are still waiting to see what the plan is for espn in terms of potential partners for that, not to mention, of course, some other assets that bob iger deemed noncore that's, perhaps, for another day. as for another hour, that's coming straight ahead from "squawk on the street. (fan #1) there ya go! that's what i'm talkin' about! (josh allen) is this your plan to watch the game today? (hero fan) uh, yea. i have to watch my neighbors' nfl sunday ticket. (josh allen) it's not your best plan. but you know what is? myplan from verizon. switch now and they'll give you nfl sunday ticket from youtubetv, on them. (hero fan) this plan is amazing! (josh allen) another amazing plan, backing away from here very slowly. (fan #1) that was josh allen. (fan #2) mmhm. (vo) for a limited time get nfl sunday ticket from youtubetv on us. a $449 value.

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good thursday morning. i'm carl quintanilla with seema mody charles schwab's liz ann sonders coming up with jackson hole kicking off. and randy kroszner weighing in and breaking down the likelihood of what he calls a hardish landing. the ceo of autodesk after earnings as that stock jumps on revenue beat and more enthusiasm about a.i. let's take a look at markets. with the dow, s&p and nasdaq all trading lower. the nasdaq down