good tuesday morning. i'm carl quintanilla with leslie picker on the floor of the new york stock exchange. coming up, higher yields are ahead, that's the thesis from jim blanco, and why there's one more hike coming from the fed. shares of smucker higher after strong earnings. the ceo will join us first on cnbc in just a moment. later, elf beauty announcing the biggest deal in the company's history. stock is now outperforming nvidia over 12 months. that ceo is with us in the second half of the show. but we're going to start this morning on investor sentiment.

b of a noting equity inflows are on the rise for the fourth straight week with etfs being favored over individual stocks. senior stock commentator mike santoli with us. where is sentiment right now, given the nice rally? >> i think coming into this week -- we cooled off from a month ago. i think you got a little exub exuberant, probably in those single stocks. you saw the options volumes and everything get a little nutty in july. we backed off that following the market. now it's still, i think, everything has remained within the bounds of routine pullback. i think that's why you see the general slow and steady asset allocate, money still flowing into etfs and things like that. overall i think the interest in bond has been unmistakable. from retail. you have retail, grabbing the relatively high yields at multi-year highs. mostly in money markets as opposed to bonds. what's fascinating, yields until this morning kept going up,

which means there's more sellers in bonds than buyers. can you never really figure out from the observable flows what's actually driving things, whether it's reacting or not. that's why i'm a little hesitant. today's reaction is pretty clear that stock investors or traders are most afraid of runaway higher yields. we got the jolts number and moderated the move and you can get a little lift off that. >> interesting to hear you finally give into positioning news and flow news. you're normally resist antd, i would argue. >> that's why i'm trying to put it this context. we overemphasize the stuff we can measure. when b of a tells us every week, this is what our clients did, we think it's more important than what the market did in the last week and we say, i guess people are buying because the market went up. >> this week is known for less liquidity, less volume, so is it fair to read too much into the response of the data we've seen? >> i think it's fair. in my view you, the prices always count.

it's not as if there is nobody out there that will react to news. you have to make sure it seems like it's going to be a multiday reinforcing move as opposed to just a blip. we have seen a lot of intraday blips, a lot of reversals. it feels very much like nobody wants to necessarily be the one to take either stocks or bonds outside of their range. i keep pointing out, you know, equity index is in the range, yields backed off the high end of their range this morning, oil, the dollar, everything is kind of staying relatively settled. for now anyway, the story hasn't changed much. >> people willget back from vacation and say, what's changed? >> that's what i like about it. you want to make sure people feel they've been -- i have to say, the yields spread thing when you introduce the peanut butter and jelly company. >> the pun. >> credit to somebody out there. >> >> thanks, mike santoli. let's turn to the bond market, yields moving lower with two other big pieces of data this

week. core pce and the jobs number on friday. our next guest says the multiyear bear market in bonds is in year four and shows no signs of slowing. joining us jim bianco. i wonder if you think it's going to play given the jolts today? >> let's keep in mind, too, the july data that we just got a month ago is very strong. that's why the atlanta fed gdp were talking about 6% gdp for the third quarter. now we get the third set of august data and lagging july data. i'm thinking more along the lines of consumer confidence number took a big dive and the jolts number took a dive. the market gets excited about data that comes in well off cob census. in this case it was weaker. we had stronger data and weaker data right now. i think the trend in the economy is still stronger. i think that's going to keep pushing on inflation.

that's going to keep the trend in interest rates up. the ten-year yields, high for the whole cycle, was yesterday. excuse me, the two-year yield was higher. the ten-year's was last week. we're not anywhere much off the peaks we've seen so far. >> are you in the bill gross fair value 10.5 or the summers get used to 3.75 camp? >> i am and definitely for the reasons they cited. using bill gross as an example, he's talking about inflation might settle at 3 means the fair value for the funds rate, new ral funds rate is 3.5 to 4. when the yield curve uninverts and goes back to normal, that puts the ten-year yield around 4.5 to 5%. we're at 4.20 so we're well below that level. i think that's where we're going to settle out. what's important to understand is 3%, 3.5% is the new long-term

inflation rate. jay powell talks about 2%. it's now been two years and we're still waiting and they're saying maybe another two years to get to 2%. i think i might need to be longer than 2%. we have to start thinking maybe 2 is not the target anymore. it is 3%. we are in a higher inflationary environment. >> but at jackson hole, officials there made it very clear that 2% is still their target. do you think we should really fight the fed on this one?

and that's where the bond market is going to -- people are starting to come around to this idea, rates are not going to go down. one instance, the market is now pricing in the first rate cut in june. in ten months. it was the idea just a few weeks ago we were going to have four rate cuts in 2024. now the first one is pushed up to june. that means that eventually we're probably going to push it out to 2025 because i don't think we'll get a rate cut in '24. >> just to follow up on your comment about being difficult to get to 2, is it difficult to get to 2 without a recession specifically? >> yes. i'm talking about the long-term average to get to 2 is going to be very difficult. you're right, a collapse in the oil price or something along those lines could get you temporarily down to 2, and then the minute everything recovers, you come right back off that number. but to say the long-term average, the equilibrium of average is 2, we have more work.

we're in a post-pandemic economy. that's a fancy word for saying, everything you understood about the economy in 2019 is different now. take remote work as one example. one-third of all global offices are empty on any given day because of remote work. things have radically changed. it's creating friction until we restructure the economy for the new post-pandemic world and that could take a decade plus. >> we'll see, jim. the doves certainly hope a.i. and productivity are going to rescue us. we'll find out in a decade. from wall street to washington, the biden administration unveiling the first ten drugs subject to medicare price negotiations kicking off a hotly debated process under the inflation reduction act. emily wilkins joins us from washington. >> the biden administration claimed a major win when lawmakers voted to let medicare negotiate the price of certain drugs for the first time

bringing down prices for senior citizens. pharmaceutical companies are pushing back saying that's not constitutional. the ten drugs the white house announced are produced by the same companies that sued the administration, challenging the legality of the law including johnson & johnson and merck. if a company declines to negotiate with the government, the company either faces a heavy tax of up to 95% of u.s. sales or will be completely pulled from medicare and medicaid markets. the administrator for medicaid and medicare services told cnbc that the drugs were picked, in part, because medicare recipients spent the most on those drugs. an estimated $3.4 billion in out-of-pocket costs. saying while the administration aims to lower costs, it will take into consideration what companies spend on research and development. >> what happens now, emily? you have lawsuits circling. obviously some industry pushback

from some of the big pharma companies. what's the prospect of something kind of -- an injunction or something halting the administration's plans here? >> it is now up to the courts to decide where this goes. there's not just one lawsuit. there's at least eight different ones out there. we're going to have to see what happens here. the biden administration under the law, the changes to the prices weren't even supposed to go into effect until 2026. we have some time to potentially work things through the courts. remember, these ten drugs, they're only the first tranche. we're supposed to see additional drugs in 2027, '2027, 2029. if the process is able to go forward t won't just be these ten drugs, it will have a huge impact across drug manufacturing and pharmaceutical companies. >> emily, thanks. joining us on big news in the pharma industry. shares of jm smucker higher.

stock still struggling for the year. the ceo will join us next to talk about the numbers and the company's return to office plans that are making some headlines. and then we'll get to bull calls on verizon and at&t. plus, check in with the ceo of elf beauty after announcing its largest acquisition in the quk t see ijuory. "sawonhetrt"s st getting started.

welcome back. shears of jm smucker moving

slightly after raising the full-year profit guidance. the company is seeing growth across all business segments and comparable net growth of 21%, thanks in part to price increases during the quarter. joining us in a first on cnbc interview, jm smucker ceo mark smucker. thanks for being here. you were able to demonstrate some pretty strong pricing power this quarter. consumer appear to be willing to pay up 9 percentage points for your product. how much appetite is there to continue that pricing power from here on out? do you see price growth slowing dramatically or even coming down at all? >> you know, leslie, thanks for having me. first of all, most of our pricing actions took place over the last 18 months or so. we still consider we are in an inflationary environment, although we have seen some relief on coffee. we have been very focused on

making sure that if we do pass along inflation, we do it in a very prudent way, work with our retail customers and do so in a way that is cost justified. our brands have been able to hold this pricing and demonstrate both dollar and volume growth during this time period. >> obviously part of that, too, are higher costs are encouraging more americans to eat at home because the cost of dining out is more expensive. obviously, that's a boone to some pantry staples. how do you square these trends with the pricing decisions with the goods you sell? i know packaging goods have gone up for you, packaging goods have gone up for you. how are you looking at things in terms of margins? >> we're always focused on being balanced and how we grow top and bottom line. we have been able to protect our dollar profit and most importantly our brands play in very resilient categories and we play across the value spectrum, whether that's folgers coffee,

dunkin coffee on the premium spectre, milk bone, dog biscuits, all the way from value to premium. we offer products and brands that any consumer can find a home there and meet their individual needs. >> the last couple of weeks have not been especially constructive for views of the pet business after results out of petco and chewy. are you getting some tradedown, audience where you might go specifically for your pet? >> again, i think if you look on the our milk bone brand, that's our crown jewel in our dog snacks business. although we've seen a little movement down, even our premium offings in milk bone have been growing. there's a little shifting around but our portfolio is so well positioned that we can capture consumers at the value and premium end of the spectre. >> i want to ask you about your work-from-home policy. you got t"the wall street

journal" with a nice spread, no pun intended there, a few days ago. according to the article, your employees are only expected to be at your oracle campus six days a month or 22 core days a year. can you kind of explain this policy for our viewers and some key lessons and takeaways you've learned? i'm assuming this is something you've employed within the last few years or so. >> sure. you know, first of all, we're a manufacturing company as well as a marketing company, so two-thirds of our employees do work -- come to work every day. many of our technical employees that work in our product development, they come to work every day. for our corporate employees, broader corporate employees, we wanted to make sure we're providing an environment where we have presence with purpose. wanting to try to get people in the office all at the same time. so we've identified 22 core weeks during the year where we expect people to show up in the middle of those weeks.

it's working because what happens is, relationships are built in between meetings, over the lunch hour. it's allowed us to attract great talent from outside of ohio and so people do actually commute in during those weeks. it's really been working for us because of the number of folks we get together on those days. >> does it allows you to reduce your office footprint if that's, in fact, what you were interested in? >> you know, we have not felt a need to do that at this point. i think we're focused on making sure that the scheme we have designed works to both promote productivity, which is working, as well as nurture the culture that we have created. so far we've seen great results. >>. >> fascinating. it's definitely a unique and interesting adaptation to the hybrid workplace. mark, thanks for sharing your insights with us. >> thank you for having me. meantime, elf beauty has

surged more than 200% over the last 12 months. today they look to grow further through m&a, announcing its largest deal since going back in 2016. the ceo will join us in a few minutes. plus, take a look at coinbase. shares surging as a federal appeals court rules against the s.e.c. and its denial to crypto firm grayscale over turning its bitcoin trust asset into an exchange traded fund. good news for crypto enthusiasts. bitcoin up sharply as well. stay with us. ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪

welcome back. european market set to open in a moment commenting on the ecb. rate hike odds up 50%, up from 40% last week. once again, the story abroad is china as its largest banks cut interest rates on existing mortgage rates and deposits as part of a broader stimulus measure the state is

implementing to try to boost china's slump issing economy with gina raimondo in beijing expressing optimism over u.s./china relations while calling for significant changes to be made before assets would again become investable. that's kind of the keyword for our audience. there is some discrepancy over whether it's still possible to invest in china given all the overhang with regard to their economy and regulation the appetite to stimulate from here. >> yeah. cutting rates on existing mortgages sounds like another move, but as goldman points out, they haven't done that since the great financial crisis. we're incrementally moving to larger and larger bits of stimulus even though they appear to have some inherent reluctance to give outright stimulus to consumers the way we did during the pandemic. >> ail in theory, cutting mortg race would have that effect. it's kind of targeted to make sure consumers do reignite that

spending engine. we'll see if it has the effect they're hoping for. it seems like it would be more of a longer term effect. it's not something that's immediate like, say, putting money in the hands of consumers right now. it will take some time. >> yeah. we'll see. a lot of talk about travel and tourism. let's get a news update. good morning. 23 florida counties have issued evacuation orders ahead of hurricane idalia expected landfall tomorrow morning. tampa tells people to wrap up preparations as it is predicted to have a storm surge up to 12 feet. miami stopped all air traffic at 7:00 this morning. forecasters say it could hit the gulf coast as a category 3 storm. steve scalise announced he has been diagnosed with cancer. the congressman said in a statement he was not feeling like himself this past week so he underwent tests that showed he has a type of blood cancer

known as multiple myeloma. he says it's a very treatable form and intends to work while he receives treatment over the next several months. and the pentagon is harnessing artificial intelligence to monitor threats in the nation's capital. the defense department plans to spend $100 million on a new a.i.-powered air space monitoring system in d.c. it's expected to be launched by the end of the year. leslie? >> the a.i. race continues. thank you. >> you got it. hsbc says u.s. exceptionalism is increasingly making a comeback and it's time to buy the dip. we'll talk about the upgrade of t and verizon and why the dividend yields have the market turning bullish.

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take a look at the market. dow close to session highs, up 144. two-year yield, 4.89 as we were above 5.00 yesterday as job openings came in this morning with a big miss. lowest since early 2021. bob pisani is watching what's moving post to post. >> we had the interesting ruling for grayscale, allowing them to convert to bitcoin trust. they're ruling in favor of grayscale. we see marathon digital moving, we're seeing riot platform moving, coinbase.

they all trade on the nasdaq. grayscale bitcoin trust itself, which trades over-the-counter is up about 15%. come over here. we saw something more important move today. the weaker jolts data, the weaker report on jobs out there for august, it really rallied stocks. they like a slightly weaker job situation. immediately tech stocks started moving. they moved a little quarter here. here's salesforce. salesforce, all of the tech names generally opened slightly to the weaker -- we opened at $206 on salesforce. moved up immediately at 10:00 and now $210. tech has been moving to the upside. semis also bounced. taiwan semiconductor, that was down on the day. opened $93.77. that was down. now $94.79. this doesn't move an awful lot on a daily basis so that's a fairly significant move. it's now to the upside.

even software stocks rallied on the jolts report. the weaker than expected jolts report. service now is here. take a look. service now opened down at 565 and now at 577. they all move to the upside. other names in this group like s.a.p., for example, software names, they opened down as well. 137. s.a.p. is now trading around $139. the bottom line is we are in an uptrend in the market right now. the low for the s&p, the closing low was over a week ago, october 18th, 4369 was the low. we've been slowly moving up here. now about 4473. guys, we are definitely in an uptrend. the reason we switched around, the second half looks different than the first half, stabilization in the ten-year and the two-year. back to you. >> bob, thanks. we'll watch it with your help.

let's turn to a note from citi with a bull call on a pair of fell telecom, at&t and verizon, pointing to an improving landscape in wireless. joining us to break it all down is julia boorstin. they still prefer t-mo but interesting note. >> they do prefer t-mobile to verizon and at&t but they are upgrading both to a buy. i think what's interesting here is this commentary about a stabilizing competitive landscape. for so long, all of these telcos were in price wars. as one lowered the prices, the other felt pressure to as well. there was a lot of churn, a lot of movement of consumers between these different players. what this analyst note is saying now, because these price wars have stabilized, because there isn't as much movement going on, they are seeing lower levels of

churn, which is obviously helpful to maintain that subscriber base for a longer period of time. another thing i want to point out is they talk about uncertainty around these -- the lead exposure and litigation. they say positive litigation outcome, so that would mean anything from minimal to just managed remediation of these above-ground lead pipes would mean that verizon and t-mobile could recover at least a third of the recent market cap losses. so potential for upside if those litigation issues turn out not to be as bad as feared. >> they also mention this as being a valuation play with at&t and verizon trading in decade-plus lows on an ebitda basis and decade high is on a dividend yield. that's probably an attractive combination in this current environment. >>. >> absolutely. if you look at why the stocks are at decade plus lows, so much

has been impacted more recently from this lead litigation issue. over the long term, people are going to be paying their mobile provider. we definitely have seen inflation and a lot of different factors. we are seeing no matter what, people are going to keep their cell provider. broadband is also, of course, key here. valuation down, long-term potential, and some upside potential as not only price wars stabilize but potential benefit from the litigation not turning out as bad as many feared. >> in my case, i think i'll be the last to go. appreciate it, julia. >> exactly. >> can't live without this thing. the other note on the agenda, hsbc says its comeback with short-term sentiment and positioning making this a tempting entry point for risk assets, especially u.s.

equities. joining us is the man behind that call, max ketner. so, you don't see a recession and you believe investors should be piling into risk assets including u.s. equities, even some em debt? >> yeah. look, thanks for having me. we've been pretty bullish since the start of the year and we've been increasing that bullishness throughout really the last eight, nine months. particularly what happened in august, i think a lot of focus was around the increased treasury supply was on the higher yields, particularly at the front end. all of that led to that broadbased selloff across the asset classes. we kind of called it a whiff of 2022. it's a little bit, like there's no place to hide. it was a whiff of 2022, but the

real difference this time around is a year ago, we all thought, this can only end in a hard landing. all of this tightening has to end badly. where this time around, we look at the atlanta fed gdp in there now, consensus expectations for q3 and q4, they have been relentlessly upgraded. the picture is very different from last year. last year it was broadbased weakness because there were concerns around earning, concerns about growth. this time around it's actually strength, real strength particularly in the u.s. economy that's prompting us to really say, okay, it's time to jump back in. >> max, it's interesting. dollar index close to 104. i wonder if you think we return to the days where you're closer to 114 where dollar strength is a symptom of global stress. >> no, because we don't see that kind of market stress.

in order to get to those sort of 114 that you just mentioned, we would really need to have a proper sort of stress event in markets. some sort of defaults or, you know, something like we've had in march, for example. really a big selloff, again, across the asset classes. the fact really is now, even with the little bit of increase, little bit of strengthening in the dollar that we've seep over the last couple of weeks, the trade to dollar and dxy are significantly down on a year-over-year basis when we compare to the high of last september, last october. that means now in q3 and q4, the s&p, which still generates around 40% of its revenues from foreign sources, it actually will get quite a nice boost from that weaker dollar compared to last year. we're just entering that. it's really q3 and q4, might be different again in q1, but now we're entering that period where the weaker dollar compared to a year ago will, in fact, help

dollar earnings and u.s. earnings in particular. >> that's interesting. >> you don't want to lose that tailwind if you don't have to. i wonder if you think growth in china and by extension europe is getting so weak that is does imperil at least u.s. growth on the margin? >> no. i think from a sentiment perspective, when we look, for example, at the weight of global funds in china and mainland china that's been hovering around multiyear lows, when we look at inflows, outflows out of china, we've seen relentless outflows from the last couple of weeks. you can't argue from a sentiment and positioning perspective that, you know, bearishness on china has become very, very much in vogue already. i don't really foresee, particularly from a sentiment and positioning perspective, a big negative shock coming from china. if anything, with those kind of relentless outflows we've seen in the last few weeks, there might be actually some sort of

upside surprises coming. when we look, for example, at manufacturing, what we saw is on the global data, again in the u.s. and globally, we are seeing some signs that the manufacturing cycle is, perhaps, about to turn higher. when we look at things like new orders other inventory, globally also in the u.s., all of that actually could be telling us, hey, manufacturing might be about to turn the corner higher. that, in fact, would actually also help china. >> interesting. max, thank you. >> thank you. after the break, thought you couldn't do any better than buying nvidia 12 months ago? just wait until you see the chart for elf beauty. up 250% during that time. the ceo joins us next on its m&a stteragy. hey corporate types. would you stop calling each other rock stars? you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business.

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bitcoin. up 5.6% on positive news from the u.s. federal appeals court which ruled the s.e.c. commission was wrong to reject the application from grayscale for a spot bitcoin etf. essentially, this could pave the way for the first bitcoin etf in this ruling. you've got bitcoin jumping 5.7%. coinbase also higher on the heels of this news. it's definitely one we'll keep an eye on today, carl. >> indeed. meanwhile, we have a mover

in the retail space. elf will acquire skin care brand naturium which they think will double their space to 18% of beauty retail. elf stock up more than 120% this year. the past 12 months, 240%, surpassing some other names you may know like nvidia. joining us this morning, elf beauty ceo tarang amin. biggest acquisition in you are your history. what did you like? >> we liked a lot of things. first of all, thank you for having me. one thing we loved about welcoming naturium to our health beauty family is it really aligned to our strategy of making the best of beauty accessible to every eye, look, and face and skin care brands. over 80% over the last two years and has an incredible product portfolio. clinically effective, skin

compatible, ingredient-led formulas and a terrific team. we're very excited about naturium. >> a combination of cash and stock. i guess the natural question is whether you're about to get more inquisitive over the medium to long term given the currents you've got? >> we have the great luxury of tremendous growth. we just finished our 18th consecutive quarter of net sales growth averaging over 20% growth each quarter. we have a great growing business. even after this acquisition, our net debt to ebitda ratio is less than 1.5 times. we certainly have the capacity if we see another terrific brand like naturium, but we also have a tremendous amount of white space in our existing portfolio of brands, so we're excited about the growth profile going forward. >> are you concerned about the overall state of the consumer? i ask because there are some estimates that excess savings could be drawn down in this quarter or the next quarter. are you concerned that could have an impact on the beauty space, which by some measures may be seen as more

discretionary spending. >> well, the great thing is beauty has been a great category in both good economies and bad economies. it's one of those small luxuries everyone can afford to be able to express themselves. we definitely see a lot of pent-up consumer demand to express themselves. the category has been strong. we're always looking at consumer resiliency. while the consumer has been resilient, i feel we're particularly well positioned, premium quality at extraordinary prices, both with our namesake elf brand as well as now with naturium. we feel we're well positioned. >> how about the picture of the supply chain at this point in time. one of the selling points for naturium is it's clean beauty at an affordable price. clean beauty, of course, has been all the rage in the beauty space over the last few years, especially. would you say the supply chain at this point has gotten to the point where it's efficient to manufacture, clean beauty in particular? >> it is. we made the move after our

acquisition of well people in 2020, a pioneering clean beauty brand, enabled us to reformulate all of elf into clean. we saw we were able to do that without having to take our prices up for clean. we see the same with naturium. they have a terrific supply network throughout the u.s., further diversifies our supply chain. we feel really good about our ability to deliver the best of beauty and make it accessible. >> beauty has been a topic of discussion at our desk for a while now. mostly surrounding your much larger rivals that have arguably fumbled the ball in asia and some supply chain processes. i just wonder -- not asking you to address them directly, but what sort of opportunities does that afford you right now? >> we have tremendous white space. we have space in color cosmetics. we're now the number three color cosmetics. we past cover girl. we are the number one brand in target. we have 18% at target. i'm very bullish about our ability to double our share in

color cosmetics. skin care has been a fast growing area of our company. our elf skin care was up 127% in the last quarter relative to the categories plus 10. adding naturium further strengthens us in skin care, doubles our presence. internationally we still have quite a bit of white space. our primary two countries are canada and uk. we're doing quite well there. we've built out a team to expand our business internationally. i see plenty of growth opportunities for elf beauty regardless of the macro. >> what about the marketing strategy there, especially as we look at the social space, which has been so important for the beauty world in terms of marketing various products with tiktok. now you have threads and twitter. how do you look at that overall picture and how do you capitalize on the various platforms to actually reach your customers? >> we always go where our consumer is.

elf beauty is the number one brand, we cracked the top ten in skin care. if you take a look at how we've been able to do that, it's really leading on the platform relevant for our key audiences. we were one of the first brands on tiktok. our last hashtag challenge generated over 15 billion views. we're the first beauty brand with our own channel on twitch. we continue to engage our consumers in unexpected ways, including our brand-on-brand collaborations and it's actually driven a great deal of engagement for the brand and we'll continue to lead on new platforms and continue to broaden our reach. >> tarang, we'll watch the stock closely. 137.50 would be the all-time high. not far from there this morning. really appreciate the fwid answer and the color on the deal. congratulations. thanks, tarang amin of elf beauty. google planning to outline its new a.i. offering at its cloud conference this afternoon. what that means for amazon and microsoft next new new section lows on the ten and two-year

yield. the two continues to fall today. 4.88. we're back in a moment. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley ♪ opportunity is using data to create a competitive advantage. ♪ it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you

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"tech check" with deirdre bosa. hi, dee. >> leslie, the first half of the year all you needed was a cha chatbot, second half the bar is higher. 9 investors want more products, more use cases. the next use case will be where sentiment is at. the event happening here in san francisco is focused on the cloud, a key unit the company is investing in to reduce its dependence on search. it is at the center of generative ai efforts. ai tools were released for customers at $30 a month which it announced on july 18th. microsoft stock jumped 4% and google's is getting close to that today. you might think that markets would like to see more uptick

first. perhaps this is an indication ai enthusiasm is very much driving these names and not just the mega caps. ginkgo bioworks announced a partnership with google cloud that leans in on those ai tools. so perhaps, again, an indication that enthusiasm is still driving these names. google's competitive edge may be at the life cycle. over half of startups use cloud and 70% are google cloud customers. the ai case today could be helped by jensen huang, the nvidia ceo who is truly at the center of this hype cycle. huang is expected to help announce a large cluster of nvidia's newest and highly sought after h100 chips will be available to customers using its growing ai offerings and will talk up their own ai chips known

as tpcus. they want to know how all of this computing, these chips, leads to commercialization. so from the picks and shovel chips to a secular wave of applications in retail, streaming, advertising, et cetera. stuff that people like you and me will pay for. we're not buying h100 chips. we're buying the apps that it enables. >> deirdre, do you think the market cares how much some of these big tech companies are spending to be competitive in this space? the market is writing them a blank check saying be competitive. we want to see you succeed. >> 12 months ago we were talking how investors wanted to see more operational efficiencies, companies laying off staff and

cutting moon shop projects and now it feels like at least generative ai has been given a pass for now. it raises capex costs in the cloud. and microsoft and others have said that it will do that. the promise of generative ai is so large. they're getting to the show-me phase. less talk, more show us the applications. you've seen chat gpt. applications in a number of industries not just chatbots. >> new highs on the year of alphabet. >> i remember when cloud was given a free pass until it wasn't. deirdre, thank you so much. less than 1% acceptance rate, crap meet and $19 a month. a look inside onofe the most coveted wall street internships

is next.

this is cynthia suarez, cfo of go-go foodco., an online food delivery service. business was steady, until... gogo-foodco. go check it out.

whaatt?! overnight, users tripled. which meant hiring 20 new employees - and buying 20 new laptops. so she used her american express business card, which gives her more membership rewards points on her business purchases. somebody ordered some laptops? cynthia suarez. cfo. mvp. built for cynthia's business. built for your business. amex business. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire in today's ongoing meeting the fdic came out with new

proposed rules for mid-sized banks in the wake of the bank failure this spring looking to make any future winddowns more orderly, for those with assets greater than $100 billion, serving as an additional suffer in case of a failure. the goal is to wipe the debt before depositors lower the cost to the fdic. this won't apply to smaller community banks. the fdic is looking to overall living wills. fdic chair martin gruenberg said the incremental long-term debt required under the proposal would marginally increase funding costs and may result in a decline of about 3 basis points. comments on the proposal are due by the end of november and, of course, carl, we know the bank lobbies have been quite busy

this summer in the wake of the turmoil from the spring. >> trying to make it clear, at least to their constituencies, you can do this but it will cost somebody and likely will be the consumer. >> exactly, the borrowers. they may not get that access to credit. exactly. $19,200 a month? wall street is buzzing about the salary of some of the interns that aremaking -- what they're making at citadel this summer. that's right, the interns. math geniusesselected to the 11-week program will make about $120 an hour playing the role of hedge fund traders as they look for the next kevin griffin. when i grow up, i want to be an intern. >> at citadel. >> at citadel. they said mbas are not accepted. >> is that true? >> they didn't even mention journalists.

i will rule out my qualifications right now. >> it's fascinating and just shows the degree to which ken is looking for the next generation of whales if things go well. >> the talent wars in this space are real. >> decent tape would be the s&p's best day. to the judge. welcome to "the halftime report." i'm scott wapner. front and center, stabilizing tech with the nasdaq now up five of the past six days and outperforming again today. is that trade back? we debate it with the investment committee. joining me josh brown, stephanie link, jim lebenthal. we'll show you the markets. carl just said we're working on a good day, jolts.o.l.t.s. miss confidence missed, no big shock. that's the way it is, that things have been, as we wind down the worst month of the year for the s&p heading into today. the worst month of the year, but,