leadership coverage. he calls it a character he doesn't recognize. it is friday, september 8th, 2023. "squawk box" begins right now. good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick with joe kernen and andrew ross sorkin. happy friday, everybody. let's look at where things stand. you will see red arrows for the u.s. equities. dow futures are off 76. the s&p and nasdaq were down. s&p now indicated off 10 points. nasdaq indicated off 42 points. you are talking about four days in a row of losses for the nasdaq and three days in a row of losses for the s&p 500.

a lot of that because of what is happening with shares of apple. we'll talk more about that later. $200 billion of market cap lost from the stock over the last several sessions on concerns over china. let's look at the treasury market. 10-year treasury is 4.24%. 2-year treasury at 4.93%. in asia, stocks in japan fell by 1% after the disappointing gdp data. stocks in china were relatively flat and trading for the session in hong kong canceled because of the black rain storm warning. hong kong saw the heaviest rainfall since records began 140 years ago. you could see cars submerged here which is a really big issue. shutting down trading. david solomon speaking to david faber at the tech conference in san francisco yesterday. he spoke about the private credit business with more than $100 billion in private credit

on goldman's wealth management platform. >> i think given the shift in the environment and change in the capital markets we have gone through and the shift we are experiencing right now is making those markets attractive. that is an area where, one, there is real opportunity for players which are private players, but real opportunity for institution like ours which finances our positions and helps put deals together in that s space. >> solomon paddressed the negative coverage of the leadership at the bank. >> it is not fun watching personal attacks in the press. we are a big organization of the we ar world. we are watching that scrutiny carefully. i don't recognize the character that has been painted of me.

i think particularly, my colleagues are not shy of expressing their personal views. i always reflect on it. you always look at it. we're focused on doing what we're doing. >> it was an interesting interview to hear him express the issues with the negative media coverage. i thought the credit piece was more interesting because it expresses where that bank thinks this world is going. i don't know if he is right. >> who was before paulsen? and before him? they are always bigger than life types at the helm. rarely do they get much negative press press. >> that's not true at all. >> not about that. how effective as ceos. lloyd was a lion of wall street? in front of the of u.s.

government. >> i'm not sure he was a lion in the middle. >> the guy in charge is really should be the guy in this charge of dpgoldman sachs? >> the partners at goldman sachs and former partners of goldman sachs has been a soap opera. you go back -- >> before they were public. >> how about hank? >> a soap opera, too. >> i don't remember people saying he is not good. >> it was a soap opera because he was going to take the company public and ruin the partnership. at some point along the way -- >> i don't remember bob chapek-type where this guy should not be in the job. >> his point yesterday when the point was made of several partners left and five in one week. he said that is not any different. >> the stock is fine. i'm looking at it.

you do back to november of 2013. look at the stock. i was checking apple. the next story here. down 6%. fell 3% yesterday. 6% in the last three sessions. the all-time high is just under -- apple. down 10% from the all-time high? the quick calculation. >> the dip just in the last few days is $200 billion. of course, a huge company. >> it is an important market driver, obviously. the most important. maybe on a yearly chart, it is down a little. 177. the high is 197. 196. >> for the one-year, it supis u 15%. >> i was watching some of the coverage.

>> 36%. it is the china market. the larger issue of the dispute with china and the united states. if china actually starts to carry out retribution on u.s.-based companies, what does it mean for apple where it is the second largest market or one-fifth of the revenue comes from there. the moves so far don't justify the selloff in the stock. it is what happens from here. tim cook has been so good at walking that tightrope being a u.s. company and multinational catering to the chinese government. >> in march, it was 152. that was six months ago? it went to 196. >> up 36% for the year to date. >> the demise of apple. he said you don't know. if it went back down to the

lows, that would certainly be a negative on the nasdaq and overall sentiment for the market. on wednesday, the chinese government banning foreign devices. bloomberg said the ban may expand to other government entities. the foreign minister responded to the u.s. lawmakers' claims that the iphone ban aims to limit u.s. companies. the minister said the products and services are welcomes as long as they comply with rules and regulatiregulations. huawei's phone sold within hours. that is part speculation that huawei could reclaim the customers lost to apple after the access to psupply. we will get a live report from beijing at 6:30 a.m. eastern.

china exports for the fourth straight month down. >> to the point that karen made yesterday. her point is if chinese consumers can no longer afford to buy iphones. >> how do that? >> it is pricey for the huawei. >> you keep harping on it it. $13,000 gdp. personal gdp in china. it puts it as not even a high-end country. how do they take over the united states? now that is -- >> even a report this week saying that is off the table. >> never going to happen. >> i don't know. it was supposed to happen in 2030, if you remember. that is off the table. >> how about in my lifetime? >> i hope a long time, my friend. >> we're con ttemporaries.

all of us. it is one day at a time, right? if you are living at the same time, you can be charlie munger. i'm 20 years younger than charlie. >> he will turn 100 on january 1st. >> a lot of people thought -- we should tell you about another story brewing here. ukrainian official slamming elon musk for ordering engineers to shutoff starlink satellites last year to thwart an attack on russian war ships. musk supplied terminals to ukraine in the early days after the russian invasion. according to the musk book, musk had concerns about the use. he told eisaacson that they showed not be concerned. musk said he was worried that it

would be like a mini pearl harbor and provoke the kremlin into launching a nuclear war. musk's decision to disrupt the drone attack by shutting off internet access allowed russia to launch missiles from the ships killing civilians. the book will be released on tuesday. he will be joining us that morning right here on "squawk box." we got an early look at it. really deeply reported and i haven't finished it yet. it is something that people will be talking about for a long time. >> on this point and the point we talked to joe about yesterday. it is an interesting issue. we had within the military and one thing joe was talking about is not enough competition for defense spending in terms of suppliers and military providers. we are now at a point where starlink is the only provider, if you will, for this kind of communication technology.

the power and influence elon musk currently has that with the context of the war and other things is a real thing. then pit becomes an interesting policy question. what do you do with that power? >> i have gone back and forth with this. i read the article yesterday. i have gone back and forth how i feel. i'm not sure. this this is the weight of the world on your shoulders. >> this is like a dr. strangelove situation. listening to elon's explanation, you can make a case for it, but depending where you come down on the conflict -- ukraine can make the case. >> who is supposed to make that decision? >> right. >> decision impacts what happens w happens. >> someone in the government. the idea a private ceo --

>> does he know what netflix and chill means? >> far be it from him. >> he knows. this is the question. should he be making that call or a government make that call? i don't know if he feels the weight of the world on his shoulders in that regard. at the same time, you know -- >> his explanation is worried it will lead to nuclear war. >> it ends up making him look pro-putin. >> a terrible situation normally a ceo would not make. >> netflix and chill in my house. it means watching netflix and falling asleep. it doesn't mean anything. watching it and falling asleep. >> our house of. >> we need a new expression. netflix and chill?

>> contempcontemporaries. >> we are. >> anybody who gets up this early. >> are you sure you are going to out live me? that's what i mean. we are all living at the same time. every day is a gift. >> that is true. >> that's the way to look at it. coming up, fed officials -- every day with you two. >> thank you. >> fed officials are keeping options open ahead of the rate decision this month. we talk to former fed governor frederic mishkin. that is in the 8:00 hour. you are watching "squawk box" on cnbc. >> announcer: this cnbc program is sponsored by if they're no securities. experience, expertise, exe execution. financially, i'm the flight attendant in that situation.

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new comments from a pair of fed officials ahead of the next policy meeting. fed logan says skipping could be in place. logan is a voting member of the fmoc. she added that skipping does not imply stopping rate hikes. logan's comments follow those from new york fed president and fellow fed president john williams who said monetary policy is in a good place, but the central bank must keep

options open depending on the d data. joining us now is head of jpmorgan chase portfolio manager. i'll not bury the lead. you think july is it? >> we think they will skip in september and as the data comes through, it will be clear that they have done enough. >> the lagging effect will become evidence. >> yes. it will become evident. we think it is evident. >> did you guys think how lucky we are? we have ready made news. general news is saying is there anything happening? there's data. next week, there's all kinds of stuff coming to give us an idea of what's going on. we're going to be there to report on it. >> absolutely. cpi and retail sales are the two

big points next week where the fed will pay attention. retail sales to me is an interesting one. we have seen a lot of strength in the consumer in june and in july. you hear about the taylor swift effect and "barbie" effect and "oppenheimer" effect. when i see the sales data, i see the consumer spending beyond their means. excess savings is depleted. savings rate is falling. credit card balances of consumers are rising as well as interest expense they need to pay on the credit card balances. >> have we spent down the covid excess funds? >> we estimate we will by q4. based on the recent data in july, that is happening faster. i see the pull forward of consumption and fun summer. i had a fun summer. now we're returning to the real

world in the fall. student loan payments are restarting. that leads to the fed tying it back here. we expect downside risk to the retail sales report next week. we're going to see that consumer had fun over the summer. ultimately, we think growth and inflation will continue to moderate for the second half of the year. >> oil at 86. we are talking to dan later. you think shelter costs and supply chain easing will drive the number? even in the core? people are worried it will seep into other things. it thewill continue to trend lo? >> there are categories where energy does flow through to core, seeps in. an obvious example is air fare. air fare is a service.

jet fuel is a big contributor to prices. the biggest component within inflation is shelter costs. one of the indices i've been watching and this is consistent across the private data we have been looking at here, but the cleveland fed puts this together. a new tenant repeat index. that is down year over year for the first time since 2010. that did not turn negative during covid. i'm saying there is a lot of disinflation still in the pipeline. last year, it was about goods inflation coming down. goods inflation at 12%. now down to 1%. the next leg of disinflation trade is coming on pause. >> i'm driving everywhere from now on. no way i'm getting on a plane.

you have a rest stop. >> diarrhea effect from the delta plane? >> yeah. i'm scared. i have seen videos of the. >> -- videos. >> there is a rest stop every 30 miles. >> everyone -- >> i'm driving. i'm driving. >> on the way to europe and had to turn around and come back. >> you see the video? >> yeah. >> they used vanilla to mask it. now it is vanilla flavored sdplchltflavored. >> it was a bio-hazard. >> remember "caddyshack" with the baby ruth? >> i do. >> i don't know how you can cast aspersions on that. how is that masking weakness in the labor market?

>> we're seeing weakness in the labor market under the surface. if you look at the unemployment rate, you would see nothing about the labor market as it stands today. the unemployment rate has been flat for a year. in fact, recently, it has been ticking up. we looked back in history since the 1950s and what the unemployment rate does before recession. it bottoms five months before the recession starts. it rises .75% from the bottom to the start of the recession. then it doesn't tend to peak until you are well into recession. from our perspective, when we are trying to think about the risks to the economy and we look at the low unemployment rate which is a sign the economy is currently strong, but it is a sign we're very late cycle. instead, we're focused on the decline in payroll growth. we have gone from 300,000 to 150,000.

the declines in the quits rate. nobody is voluntarily quitting. the reason they were doing that is they senseless opportunities. the headline on walmart is an interesting case study. we're seeing in a number of sources that the premium for new hires is going away. they are not needing to bid up that demand any more. that is softening. >> what does the picture look like in six months? >> in six months time, job growth will continue pto slow. it slowed to 100,000 or less. the reason i highlight 100,000 mark is that is the amount of job creation needed to keep inflation steady. headline employment and unemployment is not going to rise any time soon. it will continue to tick up closer to 4%. >> that has to do with the participation rate.

>> it does deal with the participation rate. once it starts to turn, it tends to continue to trend in that direction. if the bottom was 3.4%, which is what we reached in april, we are now at 3.8%. we think that will continue to actually trend modestly higher. that is a reflection of the moderation of the labor market that we are seeing beneath the sur surface. >> kelsey, thank you. you remember the ride to davos? >> yes. that's why i'm never getting in a car with you. coming up, bmw abandoning plans of heated seats as a software subscription service. and joe burrow is the nfl's highest paid player. we'll talk about it when "squawk box" returns after this.

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. bmw dropping the controversial subscription service on the car for your heated seats. you had to pay a subscription to get your seats to press the heated seat button and make it work. >> i get it for free. >> the automaker charged people in customers $18 a month for that option. a sas model. >> our apple iphone model. >> it used to be a standard feature. drivers did not take to the idea. you think? it plans to focus on paid software like assisted driving and parking. all those services could also --

>> tesla has that? >> you have to pay a monthly fee to tesla? >> you can pay for an upgrade. >> my understanding is you was down the road. it hasn't happened yet. >> right. >> i have seat fans and coolers and i don't like either. >> i like the heaters. i don't like the coolers. >> steering wheel heater. going too far. >> you are not driving early in the morning when it is 12 degrees. trust me. you need those things. >> my wife turns both sides on. i'm sitting there going what? >> they don't have that with fa fabric. >> am i having a hot flash? >> they don't have that with fabric seats. high profile u.s. open match halted last night. protesters disrupted the event. three protesters wore shirts saying end fossil fuels.

one glued his bare feet to the cement floor. two others left within ten minutes. this went on and on and on. coco won. it was delayed 40 minutes. >> who did she beat? >> a fabulous match. the pro pronunciation of her na. >> glued his feet to the floor? >> we don't get to talk about burerow or the lions? >> we are so long. >> by the way, i went to the match last night. it was awesome. awesome. even with the 40-minute intermission. >> brave. >> she lost. i was wourried in the first set. brad gilbert has coco cooking at this point. >> this is why we can't ta oujobuow.k

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good morning. welcome back to "squawk box." we are live from the nasdaq market site in times square. let's look at the futures this morning. the dow futures are down 40 points. nasdaq down by 14. it has been three days in a row for the s&p 500. we will see if it continues this friday morning. apple shares rattled over china restricting foreign mobile devices including the iphone. let's get to eunice yoon in beijing with the latest on the story. good morning. i should say good evening to you. >> reporter: andrew, the government and apple still have not commented on what appear to be growing reports on restrictions of iphones at government entities. the latest is that these restrictions could apply to local governments.

the nikkei is reporting that and saying some of the sources at state firms have said the restricted list includes airpods and apple watches because of national security grounds. separate to that, one of apple's rivals, huawei, said they are launching yet another phone. what it described as one of the most powerful huawei models. this phone is the mate 60 pro plus. it has more powerful and better and greater storage and memory than the mate 60 pro which was launched when gina raimondo was in china. it is believed to have speeds as fast as 5g. the company said this new phone also has another highlight which is it has satellite messaging

via china's satellite system. huawei players rallied on the news as you would expect and apple suppliers fell. what is interesting is the chinese government, although did not say much about the apple reported bans, but it did make a comment about the huawei phones and u.s. investigation into whether or not huawei's phone had potentially violated u.s. export controls. the foreign ministry today said the u.s. probe into the new huawei chip is unreasonable suppression of chinese companies and this only strengthens wh china's determination. guys. >> eunice yoon, thank you. joining us is the analyst and only on the street with a sell rating on apple. walt, it is good to see you.

how much does your sell rating have to do with this versus a relatively negative perspective on the company before this news? >> we certainly like other analysts don't bury china as a risk in the risk and disclosures at the end of the report. it is a realistic risk that existed as the regulation is a risk to the services space. you are right, andrew, this is not why we have the sell rating. the sell rating is because people are holding on to iphones longer. this is not a call about apple is going to lose share. everyone loves iphoneiphones. i am wearing airpods. it is a great ecosystem. in the strong economy which we had for a long time, you know, customers have extended how long they have been holding on to their phones. david faber interviewed two ceoss in the u.s. the last couple days and both of them indicated, particularly john

stankey from at&t, which is customers are holding on to phones longer. >> what is the average hold time? >> three or four years. telco referenced it in rates. you talk about a single person and they are doing it every two years. the super upgraders who do it every year. you will see apple pushing operators to do annual upgrade plans. i don't know if they will care about this. it is a very expensive phone. some of the growth they got to save them from the weakness in the more developed markets and the question is how much growth can you really get in some of the markets given the price of the phone and the rumors that they want to jack up that price more just to generate revenue. >> how are you going to change your models if you are as it relates to the issue in china? china is one-fifth of the

revenue? >> it is. look at what they said thus far on this very event. you can't use it agencies. that is likesaying we can't use tiktok at the pentagon. does that mean people aren't going home and scrolling through tiktok for two hours? i'm not sure this event is a reason for anyone to make a dramatic change to numbers. what it shows is the ratcheting up that can occur and given the quotes you were saying on air from the chinese government -- >> my concern is slightly different which is my understanding or the read that we have seen news from china as it it relates to this is not only can you use your phone, if you own an iphone, as your government phone, but you can't bring it to the office. you can't bring it to the office

of t then it is unclear why you would want to have one? that is different from folks who might keep two phones and one on as a personal phone and one as a government phone. in the state of montana, i could see an employee using an android phone and deciding they want to have an iphone for whatever reason personally. >> you stumped him. >> i think we lost him. >> he froze. >> that was a really good question. >> barely at a loss for words. >> you don't have a comeback for that one. >> leave. i'll hit the leave button. >> it is our fault, walt. we apologize. we have connectivity issues. >> elon musk turned it off. you saw his tweet of. it was never activated. starlink. >> we will talk to walter about

it next week. >> different walter. coming up, a big day for joe burrow. details next. he's getting paid more than a fat cat ceo. shares of docusign is higher after raising guidance. we will talk to the ceo in the 8:00 hour. i love docusign. "squawk box" will be right back. rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

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we have an upset last night in the kickoff of the nfl season on nbc, by the way. detroit lions beat the defending super bowl champions kansas city chiefs 21-20. they were without travis kelce who was out with a knee injury and star defensive tackle chris jones in the midst of the contract dispute. you may remember the chiefs started off horribly last year and almost made the playoffs. >> lions were great. >> that's what i mean. did you notice what the quarterback had in common? jared goff and coco gauff. spelled differently. on draftkings, if you up by 7 at any point in the game, you win.

>> do you have to close the bet? >> nope. i did a money line bet on the lions. you bet $25 which is big for me. you made $70. you make the money line bet. i don't know if you saw the second time they had the ball. they were on their 20 and they went fourth and two and went for it. they made it and ended up scoring. that closed it out. sticking with football. i'm not as rich as joe burrow. espn reporting that the cincinnati bengals reached agreement with the excellent quarterback on a five-year $275 million extension with the team. it includes $19 million guaranteed. that makes him the highest paid player in nfl history. if it is five years and 275, 55. i'm alive. i can't drive 55. sammy hagar. 55 million a year. high efest ever. the crazy suits he wears?

>> they will get crazier? >> it will have gold thread. again, it makes the point. maybe we need a paper to write about how unfair it is in terms of income inequality for these guys who make money like that. we have to shame them. he's worth it. >> we don't have to shame him. for a different reason. the market. a different market. >> ceo is a board. good old boys network. >> less of a market. you don't agree. >> i think you can be a great ceo. >> i'm not saying that. there are great ceos out there. >> the paychecks for ceos is usually related to performance. >> usually related to stock performance. >> hopefully. >> when they change the metrics. >> when they buyback stock. share price.

i know. >> put it this way. there's very little that a player gets one of the contracts to juice or change their compensation in the middle of the deal. >> they can throw spit balls or vaseline on the bill of their cap. >> they don't make more money. when we come back, dr. scott gottlieb joins us to talk about the potential uses of the weight loss drugs for dmementia and alcohol addiction. and reminder, watch or listen tuso live. just check out the cnbc app. verified data, it could generate problems. your business doesn't just need ai, it needs the right ai for your business. introducing watsonx: a platform designed to multiply output by tailoring ai to your needs. when you watsonx your business, you can train, tune and deploy ai, all with your trusted data.

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find out if the so-called miracle obesity drugs could also be used to treat diseases like dementia and alcohol addiction. joining us is former fda commissioner dr. scott gottlieb,

who serves on the boards of pfizer. if you could use it for all of these applications, it would truly be a miracle drug. >> right. it would give providers broader rationale to use the drugs in the narrow indications already on the market. these drugs have been looked at in alzheimer's for many years. it gets to the question of whether the drugs are having a broader affect on inflammation, neuroinflammation. two trials under way that pfizer have started, evoke and evoke plus randomizing 3500 patients, expected to read out in 2026. there have been animal studies coming out of the nih for years that have been suggested these drugs could have a positive effect on alzheimer's disease by protecting neurons, reducing inflammation. it gets to the question if they have a broader systemic effect

that we've seen in the trials. >> how does it work, reducing inflammation, how does that affect weight loss, how does that affect what's happening in the brain, how does that affect something potentially stopping alcohol addiction, too, what's the connection? >> the alcohol addiction is a different pathway. the impact on inflammation isn't readily known. the exact precise mechanism of these drugs on reducing inflammation isn't very clear. we know it's having an effect on the metabolic path ways in the body that could contribute to a reduction in inflammation. these things have been evaluated for many years and suggested for many years. now that we're doing larger trials, you're starting to unearth these potentially positive impacts. there's also -- there's been evidence for years that reductions in weight have a positive impact on alzheimer's disease as well. theme with obese and weight reduction early in their life have a reduced risk for developing alzheimer's disease relative to people who are

overweight. we know being overweight, obesity is a predictor for alzheimer's disease. weight alone has been implicated in the pathway. one university is looking at whether or not these drugs lead to a reduction in the amyloid plaque specifically. that would be one mechanism by which potentially the reduction of inflammation could have a positive impact on these diseases. the alcohol issue, the reduction in alcoholism and other kinds of addictive behaviors is a question of whether or not these drugs through their centrally acting mechanism are having an impact on the dopamine impact, the pleasure-seeking pathways in the brain. we know they have an impact locally in the gut. we also know they have essential impact, they actually reduce your craving for food. that's one of the ways they lead to reductions in weight. and the question is whether or not that same pathway, impacting that same pathway is going to have an impact on alcohol addiction, opioid addiction,

other addictive behaviors. >> do they make you feel sick? when you feel sick you don't want to have anything to eat or drink. do you feel good when you take these drugs? do you just feel sick if you eat or drink anything? >> when you talk to people who are onthese drugs there's definitely a period they need to adjust to the drugs. you have to put your patients on them slowly. some have a reaction. their body acclimates and they're able to tolerate them longer term without significant side effects, the signed of side effects you're talking about. some patients don't find them tolerable and they need to come off them. when you first come on them, they lead to a sense of fullness. some people can have nausea, vomiting from them because they do slow gastric emptying. that can be adjusting to these drugs, that initial period can be difficult for some patients. and that initial period also probably contributes to the weight loss that people experience right away because if they feel full and nauseous,

they don't eat as much. >> is there anything reason to think alcohol has to do with the dopamine pathway? i don't think people that drink alcohol get some type of feeling -- i guess a little bit. is it the same pathway as like cocaine or opium? >> look, any kind of addictive behavior. actually, the animal studies that have been done looking at these drugs and whether or not these drugs can affect that pleasure-seeking feedback loop, looking at rats that were addicted to cocaine as well as alcohol. there have been animal studies that show when you administer these drugs to rats and animals in research settings, you do reduce addictive behavior. >> interesting. >> scott, great. thank you. coming up, an update on the union talks between automakers and the uaw. a potential strike now less than a week away. later, former fed governor rick mishkin will be joining us

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good morning. the nasdaq suffering its fourth consecutive day of declines as investors struggle to find direction. china, the fed and interest rates are in focus. the futures are lower this morning. shares of apple trying to regain some ground after two days of losses. concerns over a chinese iphone restriction wiping out $200

billion in market capitalization. could other u.s. companies be in china's crosshairs as well? we'll talk about that. plus, football is back. awe look at the upcoming season and how the ad market is stacking up as the second hour of "squawk box" begins right now. good morning. welcome back to "squawk box" right here on cnbc. we're live at the nasdaq market site in times square. on this friday morning. let's show you where u.s. equity futures stand at this hour. you're looking at red on your screen. unfortunately, dow off by 28 points. nasdaq looking to open down by 13 points. the s&p 500 looking to open up off about two points. we'll show you treasuries as well. take note of the ten-year and two-year. the two-year at about 4.944.

frank holland going to join us. i think you should mention apple. i'm not going to tell you what to do. you take requests? >> we take questions. taking a look at apple shares. we're higher in the premarket. down 6% for the week. on those concerns about a possible iphone ban by government companies in china. officials out with a statement saying foreign tech. what you're seeing, this is a big deal potentially for apple because it gets 20% revenue per china. this slide is important for investors, because apple is 7% of the nasdaq 100. big apple aevent on tuesday. shares have fallen 1% to 3% in past years. shares of apple fractionally

higher despite that pressure on iphone banning concerns in china. we got some earnings movers this morning. luxury retailer rh sinking on lower than expected revenue guidance for the third quarter. you can see shares are down almost 8%. pretty interesting chart you're seeing to theright here. rh attributing the negative forecast to ongoing macro pressures within the luxury housing market as mortgage rates sit at a 20-year high. the company adding it expects rates and broader headwind to remain unchanged until the second quarter of 2024. those shares down almost 8%. another earnings mover, docusign a on a hike to full-year outlook as macro pressures weigh on expansion. the authorization of a $300 million corporate buyback. those shares up over 3%. docusign ceo is going to join you in the 8:00 hour to discuss

the quart her, demand and much, much more. back over to you. took your question, by the way. >> talking about docusign earlier. that will be -- we need notary docusign. andrew has a real hankering for that. >> notary? why didn't you use a traveling notary for now. >> i want a digital notary. i want to be -- >> docusign has everything else. >> you fill need a notary. >> a real person seeing it, isn't that the point of a notary? >> over zoom or something. i think there are some states -- >> my accountant has a way of doing those things. if you say, we have a notary here, a signature of you saying, yes, this is my signature. >> you have an accountant that really does some amazing -- >> no, very basic. >> i want one of those guys that really knows how to bend it but don't break it. that's what they say. >> no, follows the rules to the t, and that's what i want.

>> frank, thank you. see you later. >> let's talk more markets. which docs retail investors are bullish on. jj of ig north america, that's the question. what are people like in this market? what do you see in terms of volume from the retail space? >> you guys talk about the -- i'll start with overall on the macro picture and tell you what they don't like. actually anything related to the nasdaq qqqs and the x and the dollar itself. our clients have been selling any of the indices themselves or the related etfs. what they -- they're neutral on the s&p stocks. s&p 500, you know, spdr, been kind much eutral. talking to the stocks they like, you talk about magnificent seven, if you will, all the time. so as you'd expect, nvidia, tesla, microsoft, amd, those are stocks they're buying. one you talked -- you talked a lot about apple. our clients are neutral on

overall. i thought you might see people come in and start to buy -- >> hoping it's a dip, right. >> -- on the dip. there's a stock i think that's really interesting that sold off hard that our clients are buying on the dip and not one people normally talk about, walgreens. >> what is it? >> walgreens. that stock has gotten destroyed over the last few weeks. in the last week, all of a sudden our clients with a huge interest in stock. >> why? like a meme stock at this time? >> i think it's a little bottom picking. the ceo resigned. is it a new regime? what they were talking about seemed to make a little sense, having doctors in the store, et cetera. i think people see the logic behind it, they just couldn't execute it. >> has the retail investor community caught the energy bug -- i should say, did they catch the energy train properly, which is to say most of the stuff is up 25% since june. >> it is.

when i say they caught the energy bug, not necessarily. outside the exxons, et cetera, you didn't see as much trading. where we did see a pickup is our clients, many of them will also trade future products. our crude oil futures in both the futures themselves and the options on futures, that picked up pretty significantly. over the last month or so. from that point of view, they did. i actually think what they're catching on the other side is the worry around inflation. you talk about it all the time. i filled up yesterday in chicago as i was heading out to the airport and it was almost $6 a gallon in the city to get gas, which is kind of crazy. to me, i think one of the most confusing things for retail clients and the market overall is the inflation picture. but there's no quicker way into people's pocketbook than when the price of crude oil increases and the price of gas. >> we weretalking to dr. gottlieb about weight loss

drugs. >> are you taking one? >> no, joe, i probably should. >> i thought that's where you were going. >> in a peter lynch-ish -- >> right, right. >> or meme stockish kind of way, i was curious when you look at some of the drugmakers that are behind these drugs, whether you've had an influx of retail investors who said to themselves, i have a friend who is using this -- >> i'm fat, i'm going to buy the stock? >> no, no, you know what i mean. >> weight watchers? >> there seems to be a lot of enthusiasm, headlines -- >> your body mass index is like 14. >> andrew, to answer your question, the answer is no. i will tell you the two stocks that i talked about walgreens on the surprise, perhaps. there are three other stocks interesting to me. two that people have bought, and since their earnings, which is

odd and they jumped, crowdstrike and zoom. after the earnings people came in and started buying zoom again. that's a stock we haven't talked about in the last year, year and a half too much. on the sell side the one that's maybe the most interesting contrarian play, airbnb. all of a sudden you see people on the sell side which you rarely see. >> what do you attribute that to? >> you've seen in new york itself, you're seeing what's going on in terms of some of the rules around airbnb, crackdowns, starting to see that in other cities, et cetera. >> short-term rentals being attacked in jurisdictions and people pushing back saying they can't make the money they used to make. >> you're sitting here with a bunch of hotels as you look out the window, and i think hotels will continue to lead that. >> thank you, sir. >> always good to be here. thank you. >> good to see you. you when we come back, oil

reached two-month highs after russia and saudi arabia extended supply cuts and potential shortages during peak demand winter season. some say we could see a surge of $100 a barrel in the future. we'll talk about it after the break. there are reports from bloomberg that apple could be extended to state-backed firms. we'll talk u.s./chinretis mh re. laon morgan stanley is partnering with the women's tennis association to remove boundaries... ( ♪♪ ) because this game is for everyone.

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could you turn down the volume? here, you can try. get way more into what your into when you stream on the xfinity 10g network. general motors making a counterproposal to the union representing its u.s. hourly workers and trying to avoid a costly strike that could be coming next week. the uaw president called the offer insulting. gm said it offered workers a 10% wage hike and two additional 3% annual lump sum payments over four years. they said the offer was insulting proposal that doesn't come to an equitable agreement for u.s. autoworkers. the clock is ticking, stop wasting our time. tick-tock.

if it had been in effect last year, workers would have received 29% less. gm said the wage hike is the largest proposed since 1999. the union is asking for closer to 40% in wage percent hikes over the course of that contract. also looking to change things like the benefits package the way it's done to a defined benefit package, too. shares of gm are down nearly 20% over a one-year period. this is looming for all three of the big automakers next week. >> that's happened quickly because i thought gm was doing pretty well, up at 40. you can see it came down quickly. oil slipping after a nine-day winning streak on weaker than expected data from china. winter demand concerns now outweighing extended supply cuts on whether oil can maintain its momentum is now in question. let's bring in s&p global vice chairman daniel. have you been surprised given the news coming out of china?

have you been surprised at the strength increwed? >> if you went back to last spring people thought oil could be $90 a barrel. you haven't seen that rebound. when you've gotten is production cuts by producers led by saudi arabia. that's what's bolstered the price. and i think the saudis like delivering surprises to the market and catching out financial investors. >> the -- what's the key driver besides that? give me the top five things. you have a weakening china economy, production cuts. do you see the article that saudi arabia doesn't like joe biden and is colluding to try to drive prices up before the election? >> well, i think there's obviously tension between the biden administration and saudi arabia. i don't think that doing this for the election. i think they're doing it for the price.

i think the other surprise that's there, joe, is the strength of non-opec production. all of the demand growth this year is maybe 2.3 billion mayorals a day of demand growth. all of that can be met by oil production coming from the u.s., from canada, brazil. the u.s. will add almost 1 million barrels a day of supply this year. i think that's been a surprise. >> the production has increased. actually, i think in a speech before, at least an ad before last night's nfl kickoff, i think the biden administration ran an ad about how much the president has increased production. >> i mentioned that. interesting. >> there's a lot of interesting things in that ad. cutting the deficit, a lot of things. the approval rating isn't moving too much. i don't know if people are buying it much.

lead editorial in the journal about freezing all these anwar leases. not only the ones when he came into office, but seven more, sort of arbitrarily. and whether the epa is really in a position to do these things, but they are. what would you say right now. are we doing all we can to drill, drill, drill in the u.s. or no? >> no. it's a very mixed picture. on the one hand the administration is noting -- wants higher production when prices go up. at the same time, they have their strong environmental positions and closing off areas. and i think that we're only 14 months away from the presidential election. so, high gasoline prices, we'll see that with higher prices, will certainly be an issue and we'll hear a lot of squawking from the administration, i think. >> we have the news out of china. we've got germany, i don't know what -- how you would

characterize the economic environment in most of europe at this point. we have a fed that, you know, whenever it sees strong economic growth, it looks at that like, we need to raise rates more. it seems like on the demand side, everything is shifting towards what would be bearish for oil. is the supply side going to stay the more -- is that what things are keying off? >> i think what you're -- you have 3.2 million barrels a day of opec plus cuts and another million the saudis just extended, which is what sent the prices up. and that's a response to weak economic conditions. federal reserve and other central banks. of course, the china dream has it eventually. you look at the latest data from china on exports, except for

cars, it's down again. >> so, are we at the upper end of a range and we're headed back down? were you able to buy back something for the spr under 70 again? >> well, you know, i think that the exporter, saudi arabia, will work hard from keeping prices from being $70 because they need the revenues, but we are in a period of strong demand right now as we go into the next month or two, 400 million barrels a day of demand. once we get into winter, then demand goes down. the other reason you're getting these supply cuts is that the exporters, led by saudi arabia, want to bring inventories down so you're not going into the weaker period with an overhang. they're trying to look three or four months down the road. but, you know, as i say, we're 14 months away from election and high gasoline prices are something that will start to really resonate.

and will be confusing messages for the political season. >> when we see 90, 100 on oil? do we see that this summer? >> we're seeing 90 right now. i think those headwind you're talking about would offset getting to 100. you have to have more cuts to get there. or you'd have to see a sudden rebound in chinese economy, but everything is pointing in the other direction. so, i think we're probably in a range, we could see it go somewhat higher. as people start to look towards the winter and demand going down, that would be counterpressure. these cuts are, in a sense, pre-emptive with that kind of weakness down the road. >> i don't know what your calculation is, but i think per gallon we're up about 50% from january of 2021, right? are we up about 50%? >> yeah. i think i'd have to go back and look at it. certainly that was during covid.

i was struck when your previous guest said he's paying $6 a gallon in chicago. that's not the national average. >> what's it going to average between now and the election, is it going to average $4? >> with what we've seen in price, we could certainly see gas going over $4 a gallon. what will happen is every congress person going home for the weekend will hear from their constituents about it. so, you're going to see a lot of squawking about oil prices. there isn't much room to use sprs, price management tool at this point. >> not what it's supposed to be anyway. >> no. it's supposed to be there for big disruptions. >> right. dan yergin, oil is going to be a story. it will be interesting to watch. thank you. coming up, apple facing the threat of a widening ban in china. the news dragging that stock and other names in the sector down yesterday. we'll talk about the moving and

growing tensions between the u.s. and beijing. take a look at futures right now. we are in the red across the board here. dow looking like it would open down 51, 52 points. s&p op 5 points. the nasdaq looking to open down 26 points. we're coming right back right here on cnbc. >> announcer: time now for today's aflac trivia question. what year was tiktok initially released? the answer when cnbc "squawk box" continues. medical bills. good hands! hospital bill for prime?! gaaaaap! did you just say gap?! he's talking about expenses health insurance doesn't cover. good thing coach prime knows about...say it one time! aflac! because aflac gets you money to help close that gap! now how do we get this goat outta here? (whistles) aflac! meet one of my new homies! gaaaaap! get help with expenses health insurance doesn't cover at aflac.com. elephant would've been scarier.

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now the answer to today's aflac trivia question. what year was tiktok initially released? the answer, 2016. former ftx executive pleaded guilty in new york federal court yesterday to campaign finance and money transmitting crimes. he agreed to forfeit more than $1.5 billion. he said he steered political contributions to worth democrats and republicans in his own name when the money actually came from alameda research, the hedge fund arm of ftx. he said those contribution were made at the behest of former ftx

ceo sam bankman-fried. bankman-fried's trial is set to begin on october 3rd. that's less than a month from now. guys, i think the biggest question is here, where did he get $1.5 billion? this guy has agreed to forfeit $1.5 billion? where did he get that money? >> i can think of a few places. >> i can, too. straight out of customer funds? >> during that crazy period, you don't think that's how this happened? >> this guy didn't earn $1.5 billion. he got it somewhere. he can turn over a couple of massachusetts homes he owns, his 2021 porsche, a business, some farm that he bought, but where did he get all the money? there's a piggy bank, right? >> the whole thing was a piggy bank but i assume he was getting paid in either -- was that partial equity in ftx he sold to other people? >> i read 15 stories trying to figure out where this guy got

$1.5 billion. >> 50 billion -- >> 50 was the market cap. it was the imagined valuation. >> no, the market cap. >> no, i think it might have even been more because -- no, no, if sam bankman-fried at the time was being valued, estimated his personal wealth at $30 billion, then the ftx was -- i have to go back and look. >> i was confused. i read 15 stories trying to figure out how this guy got $1.5 billion. >> i don't know. on a thumb drive somewhere. meantime, check this out, "the new york times" reporting ghost writer and anonymous artist was submitting his viral song for grammy consideration. the track mimics vocals by drake and the weeknd. the grammy ceo telling "the times" it's eligible for an award because it was written by the human but now says the vocals weren't legally obtained and since the strong was pulled from streaming services, it can't be eligible for a grammy.

so -- >> you understand why the actors are on strike. >> being a human is still valuable. at least for now. >> being human after all. still to come, china's reported decision to ban iphone for government workers, just the latest rift in the u.s./china relationship. we'll talk more about the economic impact next. plus, a football season kicking off. and so have the battles in the ad world. the latest on what advertisers are doing this year to score engagement. stay tuned. you're watching "squawk box."

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apple shares rattled this week on worries china is restricting government employees from using mobile devices that use the iphone. back to eunice yoon reporting this story all week. >> reporter: thanks, andrew. the latest is that the restrictions on iphones appear not to only apply to state agencies on a national level but on a local level as well. the nikkei has been sorted sources saying that. in addition, they've been quoting sources at state firms who said apple watches as well as airpods are on the restricted

list because of national security concerns. separate to that, apple had a new competitor unveil today in the form of huawei. huawei announced that it has a new -- what it's described as most powerful huawei model that it's taking presales already. this is called the nature 60 pro plus. this phone boasts greater storage and memory than the mate 60 pro, which was launched last week when u.s. secretary commerce raimondo was in town. this phone -- that phone was close to 5g speeds, though the company wasn't really clear as to what the specs are. for this one, also not a lot of detail on the specs, but another highlight is it has satellite messaging. huawei suppliers rallied on this announcement. apple suppliers fell. the government as well as apple

haven't really commented on these iphone and iphone restrictions. the foreign ministry did have something to say about the u.s. investigation into whether or not huawei with its chips have violated in any way u.s. export controls. saying this u.s. probe into the nua way chip is unreasonable suppression of chinese companies and that it only strengthens china's determination for technological breakthroughs. guys? >> eunice, thank you very much. for more on the u.s./china tensions and the implications for u.s. businesses, we want to bring in jacob helberg, commissioner of the u.s. and china economic review committee created by congress. he's also a senior policy adviser to ceo alex carp at palantir. thank you for being with us today. it sounds like things are definitely heating up. what do you think the

implications are? >> well, becky, it's great to be with you. what we're seeing unfolding in real time is nothing short of a tech war between the u.s. and china. the biden administration is waiting to get more details on the opposition of the new nanometer chip. we're hearing lawmakers from capitol hill raise legitimate questions about whether the huawei chip violates u.s. sanctions and the biden administration has put in place export controls aimed at restricting china's ability to obtain certain high-end semiconductor devices with potential military applications, developing and maintain super computers and manufacture advanced semiconductor devices. what huawei's breakthrough chip shows export controls will slow china but won't permanently stop china from making advances. that's okay. ultimately artificial intelligence is a race between the u.s. and china. >> what's the result of that tech war, though? does it mean that the u.s. market is closed off to chinese companies and the chinese market is closed off to -- going to be

closed off to u.s. companies? >> it basically means in areas of advanced computing that have significant spillover effects on the development of artificial intelligence and things like large language models, we are going to see a bifurcation into a chinese-led technology world and u.s.-led technology world. the u.s. and china are in a race for leadership in artificial intelligence. the leadership in washington and beijing both understand a.i. is the single most consequential breakthrough paradigm shift in military affairs in 80 years. particularly in the indo-pacific. and while the u.s. still leads the pla in aero applications in a.i., the pla --

>> the people's liberation army of china. >> correct. >> let's talk about what this means for apple. we're talking about high-end a.i. applications but this sounds like it's playing out on lower technology consumer applications at this point with these restrictions on iphones in chinese government offices and, perhaps, beyond that. is this an overreaction in the market this week? we saw apple lose $200 billion. the stock is down 6% just in this week to date. is that an overreact? do you think this is going to be more? how does this play out? >> well, this is the reflection of a growing level of mistrust that a lot of different commercial civilian technologies actually have dual use applications. in the u.s. we've actually seen this mistrust take root through bans and restrictions on companies like huawei and ctu where the u.s. government had legitimate concerns that the

chinese government could use its control to collect a lot of information on u.s. citizens and u.s. companies. ultimately china has a civil military fusion system that blurs the line between the private and the public sector. in my view, american concerns are quite legitimate. on the beijing side of the fence, a lot of policymakers simply don't believe the u.s. has a real separation between the private and the public sector. and ever since the snowden leaks, we're seeing these restrictions as not only retaliation against american restrictions but also as reflective of that growing mistrust that the u.s. government can use its influence over american companies for geopolitical purposes. >> chinese government employees are told they can't buy teslas, too? >> the chinese military employees are not allowed to

drive teslas in china since 2021. >> so, does this mean that that market is going to be event bely closed off to what we consider consumer goods? >> the big picture here is xi jinping has been increasingly ratcheting up his rhetoric into a more bellicose manner. a lot of signs point to a potential armed conflict between the u.s. and china, potentially within the next decade. >> you don't mean a tech war, you mean an actual war war? >> i mean an actual war. under that scenario, you know, it's not just the tech sector that's going to be hit, but american companies have hundreds of billions of dollars worth of investments tied up in china. you're going to see a lot of pain inflicted on both american companies and chinese companies that have sought to do business in both markets. and, look, whether or not xi jinping decides to go to war is

anyone's guess, but here are the facts we do know. we do know for the first time since 1949, the words national security have eclipsed. in march xi told putin they were setting changes afoot, the likes of which the world hadn't seen in 100 years. we know just in the last year xi jinping gave four different speeches telling his military to prepare for war. he's opened a network of defense mobilization offices around his country and he's stockpiling wheat, corn like nobody's business. china holds 69% of the world's corn reserves, 51% of the world's wheat reserves and 50% of the world's rice reserves. that's not a country preparing for peace time. that's the behavior of a country very much getting ready for, at general secretary xi said, worst

case scenarios. >> how do we respond? is this a situation where we try to de-escalate or are you thinking from your perch -- >> the number one -- yeah. look, this might sound cliche, but the number one thing that the u.s. government can do to respond is re-establish its technological superiority over china, but also other adversaries and restore a credible sense of deterrence, meaning, instill doubt and fear in the minds of adversaries that attempting a reunification of taiwan by force will be successful or easy. and there are two companies in the u.s. today's that will be absolutely central to restoring a sense of deterrence in u.s. defense and that's palantir and amrail. we've seen big tech companies in the u.s. already renege working closely with the u.s. department of defense.

palantir is the largest repository of u.s. military data and, therefore, best suited to train large models, a.i. models. and andril can provide powerful hardware. we can't take 20 years to build submarine or build a plane. we need companies that deliver real results and competitive advantages on the battlefield today because xi jinping has said, as indicated, that he may attempt a reunification of taiwan as soon as by 2027, which a lot of people in washington think -- >> jacob, it occurs to me, you're talking about pipalantir. your position as rearview commission appointed by congress, but you're also an adviser to palantir. is there a conflict there between those two roles? >> well, there isn't insofar as every commissioner on the commission actually serve in a private sector capacity.

the standard -- the ethical standard that commissioners abide by is if any issue, you know, or point of discussion comes up in commission-related meetings that create a -- that raise commercial conflicts of interest, in my case with palantir, i would recuse myself. we have other commissioners that have other different private sector activities. when topics come up that are germane to their private sector activity, they're expected to recuse themselves as well. that's the basic ethical standard that everyone abides by. >> and i guess the commission is set up to make recommendations to congress and they will dig through the recommendations and decide what they think? >> that's exactly right, yeah. >> okay. jacob, thank you for your time today. >> thank you. thank you for having me. coming up, walmart doing kind of an about-face on wages. details next. a look at premarket winners and losers, specifically in the

s&p 500. "squawk box" will be right back. you can get the best of "squawk box" in our daily podcast. follow squawk pod on your favorite podcast app and listen y meanti. he's the owner of petsworth vetworld. business was steady, but then an influx of new four-legged friends changed everything. dr. petsworth welcomed these new patients. the only problem? more appointments meant he needed more space. that's when dr. petsworth turned to his american express business card, which offers flexible spending limits that adapt with his business. he used his card to furnish a new exam room, and everyone was happy. built for dr. petsworth business. built for your business. amex business. (sirens) [due at target in 5!] copy that. make a hard left down the alley. network's got you covered. [please confirm requesting back-up.] -changing route. -go. roadblock ahead. ...back up, back up... reverse! reverse! next level moments, we're 30 seconds out. need the next level network. [north corridor, hurry!]

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welcome back to "squawk box." the futures right now still in the red. it has not been a great week, i think, three, four days in a row of losses in s&p, nasdaq. looks like more of the same on a friday. but, you know what, what are you going to do? it's friday. maybe by the end of the session we're in the green. if not, hopefully we'll all survive. come back on monday and start all over again. >> that's right. walmart cutting the starting pay for employees stocking shelves and preparing online orders after hiking that pay in march of 2021. the company confirming that new walmart employees joining the digital or stocking teams will make about $1 per hour less than they would have several months ago. that move follows a wage increase in july for around $50,000 with more in-store experience. again, may signal that the wage market -- or the labor market may not have been -- be as tight as it was in the very recent

past. meantime, "the wall street journal" reporting the s.e.c. launched an investigation into ryan cohen. the journal saying the agency is seeking information from cohen about his trades and communication with officers and directors at bed bath & beyond. cohen took a $120 million stake in bed bath in 2022 and pushed for changes to the company's sales strategy before selling his nearly 12% stake in august of that year. the sale came just days after he tweeted positively about the company, if you might remember. the investment yielding cohen a profit of nearly $60 million. that's raised some eyebrows in washington. coming up, the nfl match-up advertisers are looking for. we'll talk about the money grab. yep, we'll talk about that next. in the next hour, former federal reserve board governor rick mishkin will join us to talk about the week ahead filled with inflation da d atanfed speak. "squawk box" returns after this.

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network tv to streaming options, football fans will be watching the nfl differently this year. how do advertisers reach this lucrative audience? a new report analyzed ads to figure out what worked best. joining us, kevin crim. it's a new edo president. kevin, that's your job. what are you telling people? what did you find out in the last year? >> live sports, live news, they're the king of the hill and at the top of that hill is the nfl. the nfl is an engine that drives advertising and subscription across this landscape. it's great. it couldn't be back at a more important moment for tv than right now.

>> it's five out of ten in terms of engagement. >> five out of ten were nfl, including the super bowl and it was 220% more engaging than average. >> the secret isn't what ad you're creating, it's where you're putting it? >> it's both. a great creative in the right program will absolutely create value for advertisers and the fans love it, too. it's the right environment with the right creative that drives the ecosystem. the nfl creates $3.7 billion during the playoff season and it is a huge engine for tv and for advertising. the matchups matter a ton.

>> amazon, did they get lucky? >> try betting on it. i guarantee you don't know which teams are good. >> thursday night football on amazon prime last year was a watershed moment for tv advertising. it was the first time they had the nfl for the whole season. the nfl is very smart about its scheduling and it works closely with all of its partners to create great matchups throughout the season. they'll actually change their matchups based on who they think is -- >> is amazon doing better targeted advertising? or is youtube tv or hulu live, has anybody nailed the advertising piece, doing it different than the way it appears on linear? knowing this is kevin and i'm sending it correctly to you and not sending it to becky or joe

or whoever. >> the opportunity for streaming is you can target to who is watching very carefully. but the tension in this model is that there are many types of brand that want to reach many people all at once. if you need to sell a lot of cars or a lot of beer or sign up a lot of people to a sports gambling app. >> you prefer not to spend the money on me and if becky wants to buy the car, you want to seasosend it to her. >> that was supposed to be the beauty about online. >> some of the breaks are advertising and some are targeted to the household at the end. day. >> who is doing the best job at that right now? >> i think you see amazon making some really interesting moves in that space. you're starting to see other players, google. apple is starting to do video advertising, which is a big new

for a big player in this space. >> instagram is great at figuring out exactly what i want when and targeting me with those ads. >> they're amazing. that's a type of advertiser in instagram that is different than somebody choosing tv in many cases. they are microtargeting us on instagram and tiktok. >> is anybody figuring how the to do this over linear or any other kind of way ♪ parent company of this network, nbc, peacock and the like having this massive sort of advertising platform. >> right. many of these media companies now have great data about who their audiences are and those audiences are fans of the programming, of the talent in this media companies. that's the strength for nbc universal, for warner brothers discovery and for disney. it's a combination for attracting large audiences who are very engaged with the ads

and knowing who they are so you can target them well. >> so in back rooms people are arguing about nbc on sunday night needs good matchup. so the whole schedule with the nfl, are there talks and negotiations about who gets the best? >> there are very much so. and a lot it have is about star power. so last night patrick mahomes. >> and brady effect. >> the brady effect is real. >> i know. we measured there was a real brady effect where the games he was playing in had a larger audience, as measured by nielsen and people were more engaged with the ads in that game and you would see that's a material big boost, 15% more engaged in the ads in those games that brady was in. >> what about joe burrough who just signed the biggest contract in nfl history. does he have that engagement?

>> it's too early to tell. he's just starting his sponsorship journey as a star. if you look at the ads last night, almost every other ad was featuring one of the star athletes in the nfl, travis kelsey or patrick mahomes, you saw players across the landscape in the ads brands realize it is a big bet to be placed in the nfl and we're going to maximize the bedt by aligning with the stars. >> you know cnbc, you know linda. what would you tell linda yaccarino right now is this. >> you need to have talent, fans and brands. she's got to bring people back to try out twitter and you've got to have -- >> what is the brand's big issue? >> that's the issue.

they and the whole company has to make it a safe place for brand. >> you just described "squawk box." what did you say, fans? >> talent. i think it starts with talent. >> that's what i thought of. >> check, check. >> it's whether it's cnbc or disney with espn, i mean, this is their strength. >> that was shameless. kevin, thanks. >> it's great to be here. >> when we come back, millions of cable customers losing access to disney-owned networks in the midst of a battle over contract fees we'll have the latest on the future between linear and streaming. plus, share of docusign get a boost. "squawk box" will be right back.

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the company raising guidance. that ceo will join us first on cnbc as the final hour of "squawk box" begins right now. good morning. welcome back to "squawk box" here on cnbc live from the nasdaq markets site in times square. i'm joe kernen along with becky quick and andrew ross sorkin. >> you want to say becky quick -- >> and joe kernen and andrew ross sorkin. >> treasury yields have been kind of boring to watch. well, we still have the 2-year under 5%. we got the 10-year right at

about 4 and a quarter% and oil is about $86. brent, we've already seen a nine handle on brent so there it is. >> thank you, joe kernen. china's foreign ministry making new restrictions on devices by foreign workers. they say they are welcome as long as they comply with china's laws and regulations. apple's stock pulled back on reports of those new restrictions. now it's down by about 34 cents if you're checking out apple shares. let's get to the trading day ahead. mike santoli joins us with more. part of that might be watching apple shares. that's what drove things yesterday certainly. >> yes, there has been some pressure on the s&p 500, some

soft footing in general. also just this general sense of financial tightening out there, treasury yields, as well as the u.s. dollar index moving to the higher end of their multi--month ranges, as well as oil prices. still, it's in the routine pumbap pullback zone. the bottom in middle august was about 4,300 or so. that kept us in this third quarter range. you can still probably go down 200, 300 points from here in the s&p and still technically be in an up trend. presumably that would come with a lot of scary news. here is apple, nvidia, as well as the equal weighted version of the s&p 500 on a month-to-day basis. of course that's only a week's worth of trading and the s&p hasn't updated quite yet. it shows you 5 to 7% losses in two stocks which together are

10% of the s&p 500 yet the overall index has had relatively superficial damage here, 1.6, about the same as the market weight. you also have mega cap techs like alphabet and amazon that have been able to hold firm. it shows there is a path, especially when the credit market remains very strong and we still have date a showing economic weathering. and you see this move in energy has kind of caught up, more or less, with what those two groups were doing for the one-year span and has actually sort of overtaken a couple. what i found interesting is it not purely inverse. it not always the case that energy will move opposite of consumers discretionary. when the moves are sudden and

quick and people are worried about consumers getting tapped out, they worry about it. and if you consider wooefr been with oil prices, it doesn't help in an environment where the psychology is are we going to have a deeper slowdown, becky? >> and i think the spsychology s more complicated because everyone is trying to figure out what's the new normal post-pandemic and what is revenge spending and it's messing with all kind of things and we're still trying to figure it out a few years later. >> and student loan payments restarting, that's app an uptick. >> thanks, mike. we'll see you later. >> it has been a while since we've had our next guest on the show for a wide ranging market

conversation. abby cohen is a former strategist of goldman sachs. now professor at colombia business school. it's great to see you this morning. i'll call you professor from now on, professor. help us understand where you think we really are. there's a lot of folks out there that are quite confused, including oftentimes myself. >> it's always a confusing time, andrew, when data are not quite as clear as we'd like. and, by the way, good morning to all of you as well. i'm delighted to be here. i think we need to start the discussion by rolling back 18 months or so when the consensus view was there was a recession on the horizon. the only question was how hef e severe would it be? and i think we all know that

consensus forecast was wrong. as we take a look at what most market common entators are talk about is the probability of a recession is now lower than they had thought. and i think that these comments are actually poorly timed. if anything, while i don't think recession is the most likely scenario, i think the probabilities of recession have been rising in recent months, not declining. let's talk about this for just a moment. 18, 24 months ago when everyone was so concerned about what would happen as interest rates would move up, we had a consumer sector that had lots of room, lots of very strong job gains, consumers had big savings from the pandemic, student loan payments had been suspended and we had a corporate sectors that was quite interesting. ceos liked to settle down those

expectations and manage them down by saying they were nervous about the future. what were they doing as they were saying they were nervous? they were hiring like crazy, doing capexand where are we now? it doesn't mean we're weaker but i think we are in a situation where things were not quite as easy as they might have been 18 months ago. >> so if you were back at goldman sachs and had you to put out a forecast for the next 12 months and tell us where we'll be 12 months from now, which means you're politically walking into an election season, what would you tell people? >> tough question, andrew. why did you put me on the spot like that? we basically have a difficult situation now to forecast, more difficult than it was in my view

18 months ago when i was forecasting no recession and the s&p would get to 4500 this year. and that's where we are. why are the 12 to 18 months in my view more difficult to forecast, it's because of some of the political things that are happening not just in the united states but around the world and these don't really fall into the tool kit of economists and quad analysts and so on. let me give you one experience and this is near term and that has to do with the december 30th deadline for budget negotiations. even though the republicans in the senate and the leadership, the republican leadership in the house are saying they'd like to come to terms and have a budget deal by the end of this month, there are a few republicans in the house who say, no, no, no, they'd like to, shall we say, create a little bit of friction or a lot of friction. and if in fact we don't have a budget deal and the government shuts down, there are all kind

of consequences that are very hard to quantify. among them is what happens if social security payments are not made? what happens if other critical functions of the government don't occur, but more importantly, what happens when the rest of the world looks at the u.s. congress looking somewhat dysfunctional again as it did during the time of the debt ceiling crisis. there could be pressure on the dollar, there could be pressure on the treasury and interest rates could move up for reasons not having to do, if you will, with the economy. >> abby and what do you think about china having a cold in. >> during the covid-19 period,

the chinese economy was not working as it should and now we're seeing a significant issue that is not so much the real economy. a lot of the real economy aspects of what's happening in china have now been somewhat offset because of movement to other markets in east asia, the production that has moved to vietnam, the production that's move to latin america. what i'm more concerned with in china whats to do with the real estate markets and the government has always counted on loose monetary policy to stimulate the economy and there is an incredible debt overhang now. that to me is the biggest worry. >> abby joseph cohen, thank you for joining us. we'll see how things look in 12 months from now. >> take care. >> and grocery giant kroger has

agreed to pay up to $1.2 billion to states and subdivisions and 36 million to native american tribes, both to be paid over 11 years. the supermarket chain says the settlement is not an admission of wrong doing or liability. the company releasing result, 96 cents beat estimates by a nick el and they missed estimates slightly. the company did affirm full-year guidance but expecting same-store sales to be slightly negative in the back of the year. rodney mcmullen will be on "squawk on the street" in the 11:00 hour. >> when we come back, a contract dispute between disney and charter communication continues leaving millions without access to networks like abc and espn. we'll talk more about the

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docutrandocutran welcome back. millions of customers lost channels in the disney fallout. what it means for the next chapter in television and streaming. michael, welcome. this is a really big game of chicken that's playing out right now. who do you think, which side has more to lose? >> i think disney has more to lose. they'll lose a good percentage. those 15 million customers on charter, they went goon't get t back. i think it goin's going to be p much game over. >> will charter be able to keep its customers or do you think they'll lose them to places like

youtube or other distributors they could pick up, too? >> esp gn gets about a third of people who watch cable watch espn. i think you'll lose a good percentage. and people who are sports fans will say why am i paying for a charter what you've seen happen with other places like dish, you'll lose more customers because people will feel this company doesn't care about sports. sports is the glue to the system. it's a dangerous game they're playing as well. long term it could kill the brand and you make customers very angry about the content they want to watch. >> so what is the big conflict between these two? you pointed about a year ago about some of the cheating taking place with some of these big companies where they were

kind of leaking it out, blaeding it -- bleeding it out to their own streaming networks instead of keeping it exclusive to the cable companies that play pretty big bucks for it. >> charter, i don't want to see the content i'm paying for exclusively wind up on espn's service. espn has been hinting they're going to put more strength on streaming. our view has been that the bundle is the best for sport fans. i'm a bundle user. it works for me. the problem is that charter doesn't want to pay for espn today a high price and see the content be be nonexclusive. other companies have done it.

they're p they've not all been penalized. this is the beginning of a really difficult situation. >> part of this is where it such an unknown time but also bob eiker was possible. disney is not only asking for high fees, they want a long-term contract. there's no guerin the end of the contract. >> when bob april peers on your network talking to david faber, he's doing so much forecasting of the future, i think he's really created a lot of fear in the current situation. i almost think this has ak accelerated the problem. the future is being projected by bob, what he wants to do, as a

partner to disney, i think partner is really happy about. >> so if you were trying to play king solomon, how would you settle this? >> here's how i'd settle this? espn lost, which is a service not as desired as hullu if my content is going there. i can see how they could get agreement around espn plus estes with i don't think that's going to happen. but again, charter we heard yesterday so it seems like a line of sand is drawn. that's what i proposed to be a

settlement. i think again this is not done by jets-bills on monday night, becky, it's really bad for disney. i would think you have to get a resolution even by tomorrow night, when you have alabama, a top-three team on espn, right? >> right. >> and the u.s. open also. the power is today in terms of getting a deal done. by tuesday morning disney would have lost three big events. that would get charters to the table. so we're worried. we upgraded when bob came back but this is not something we predicted. >>. >> alabama is a top three team. it's unbelievable. something in the water? you got nick saban. what is it? you know? >>. all right.

i look and coming up, fears of a slowdown in china taking a toll on luxury stob. as we head to break, check out. he was there holding a one-man protest of air traffic controller strikes at the e.u. when he was hit in the face by ties of environmental activists. they didn't glue their feet like they did last night. >> if i lose i is blp t,t'[ ee]. >> no, no, no, we're here to discuss the petition. i life cream cakes. they're my favorite. (fan #1) there ya go! that's what i'm talkin' about! (josh allen) is this your plan to watch the game today?

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welcome back to "squawk box." some of the world's biggest luxury stocks have taken a beating over the last few months on fears are a chinese slowdown. robert frank joins us. do people call you frank robert? >> everybody calls me both. i respond to both. >> over the last six months, lvmh has lost over $100 billion and is no longer europe's most

valuable company. that's company is now held by the maker of weight loss groups. gucci down and the main reason is china, which accounts for 20% of global luxury sales, china's slowing economy, all expected to hit affluent and aspirational consumers. and luxury companies had hoped that wealthy chinese would be immune to all these factors but many of them are leading the country. a new study projects that over millionaires will emigrate. most are going to singapore, canada and the u.s. the golf club in singapore, the annual dues have gone from 200,000 a year to $600,000 a

year because there's so many chinese billionaires and millionaires moving to singapore. >> i was trying to figure out whether a median gdp would work better to try to describe what it's like in china. >> i think it would. >> when we talk income inequality, every time you say china billionaire and i think you realize there aren't enough billionaires. >> my question was how much of a consumer population is going to be spending like the middle class? >> i guess there are a lot. >> talking about such a huge population. >> the big mistakes that people talk about is it's the wealthy buying, that's why they're -- it's the wealthy office urban worker who wants to buy a bag to

celebrate, whatever it is, especially in the youth sector, that growth and income growth and job market is not there anymore. >> that's the answer but having a median would help if you could count spendable cash. >> the europe is slowing, china was the last leg left hoping that would carry them through this year and now that's gone. >> clark and kent, bruce and wayne. do super heros have two? >> so do serial killers. >> bundy? >> they often have middle names. >> coming up, we'll talk about that but maybe expectations of the federal meeting.

we'll talk after the break. "squawk box" will be right back. network's got you covered. [please confirm requesting back-up.] -changing route. -go. roadblock ahead. ...back up, back up... reverse! reverse! next level moments, we're 30 seconds out. need the next level network. [north corridor, hurry!] -coming through! -or 3, let's go. the network more businesses choose. transplant received. at&t business. people are excited about what ai will do for them. we're excited about what ai will do for business. introducing watsonx a platform designed to multiply output by tailoring ai to your needs. when you watsonx your business, you can build ai to help coders code faster, customer service respond quicker, and hr handle repetitive tasks in less time. let's create ai that transforms business with watsonx. ibm. let's create. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey!

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welcome back to "squawk box" right here on cnbc. take a look at the futures right now. we've turned marginally green on the s&p 500.

things have gotten a little bit better here, up by one point, dow up 7 point, nasdaq off about 7 points as well. president lori logan saying it could be appropriate to skip a rate increase this month but more tightening will likely be needed to get inflation down to 2%, a timely voting member of the fmc skipping does not involve stopping and williams said monetary policy was in a gad plood place the central bank must keep its options open. >> i think it's nicer. we're in a good place, he says. language we can understand. joining us former federal reserve governor and cnbc contributor frederick mishkin to

break down many things. last time you were on, rick, i remember it well, you were pretty hawkish. is it a mistake to skip? should we just do it right now? >> no, i'm on board with skipping right now. i think the fed is basically in a good place. they've done something very important, which is going back a little bit, which is they have these very rapid rises, even with a lot of resistance from the markets and politicians and so forth and that actually convinced people that they were serious about controlling inflation and that stabilized expectations. and research shows a key driver of inflation is inflaktion expectations. they got it right after making early mistakes but then they really turned it around. now they're in a situation where they've gotten rates up, they also have convinced markets they're serious, they have to keep on convincing markets that

they're serious and the information on inflation is -- there's now a real possibility that in fact the fed basically has done enough. on the other hand, i actually lean to the view that they're probably going to have to raise rates more. but given the fact that there's been good progress, that the data's been pretty good, that they actually did their job to convince people they're serious and they're continuing to do that by emphasizing they're not going to lower rates for quite a long time, even if they stop raising rates, all of that says they can wait, see how the data evolves. the key is the fed doesn't want to create unemployment as part of their job. they want to control inflation and if they can control inflation without having to raids unemploymeraise inflation that's a pretty good thing.

>> that's amazing. >> the fed has been doing its job pretty damn well i'm not uncomfortable where they are. it's more likely they're going to have to raise in thefuture than now but let's see how the data comes in. >> it like goldilocks. if you could dampen expectations without raising unemployment or having the economy hit a pretty tough speed bump, that would be -- i don't think it's possible but it has been so far. >> i agree. i think it's unlikely they're going to get away without having some kind of downturn, probably not severe. on the other hand, they have indicated they will keep fighting inflation even if a recession occurs. on the other hand, you don't have to drive it into recession. if you can do it without, f fantastic. >> now i want to try to figure

out why. every time. we get a gdp number, atlanta fed, it's like how is that possible given a 500 basis point intercrease we saw -- first friday of the month we get a jobs number in a just looks -- it's surprisingly strong, resilient. what do you attribute that to, rick? is it good things? are there good growth things happening in this economy or is it just all the government spending that's in the pipe, all the legislation, i mean now that the deficit is going to be 2 trillion this year, double last year. is it just pure keynesian stimulus that's keeping the economy afloat there good things? >> i don't know whether good or bad, but i think the consumer has much more power in terms of their spending. so i think it's both. there was a lot of fiscal

expansion. in fact, i thought too much in an early stage, which i think helped lead to some of this inflation. they came out of covid with basically a good balance sheet and they've been willing to spend and, you know, this is just the way it is. now, in general, by the way, there's always mysteries to what happened in the future, that forecasting's a very difficult process. nobody ever really gets it right and there are a lot of surprises and mysteries. in fact, that's one of the reasons why i became a macro economist. i like not knowing things so i can learn something. not everybody has that attitude but as a scholar it's great that there's ignorance and maybe you can contribute a little bit to how things were. >> you missed your calling. you should have been a journalist if you really want to know nothing. >> ooh, ooh. >> rick, i appreciate it. they're telling me we have to

wrap. we're taking a hit with some of these shots that we've got. i know exactly what you were trying to get across and we appreciate it. we'll see you again, i'm sure. >> coming up, the ceo of docusign will join us. and if you missed the most talked about sports business event of the year, you now have another chance to watch. it's cnbc's game plan summit will be airing tomorrow at saturday, 3 p.m. eastern time, a chance to get a glimpse of what health insurance inside the room where athletes and leaders open up about the rapidly evolving business. and and you can see myself and kevin durant on that broadcast tomorrow. we're back after this.

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back to "squawk box." docusign beating expectations. the stock moving after hours. it's up now 2% this morning. joining us to break down the report is docusign's ceo. you have a couple of fans, alan, at the table here. we were talking about online notaries, which we can do that

in a little bit. really right now in terms of what you see ahead and your guidance going forward, where does this all head? >> first of all, we had a very solid quarter and exceeding guidance on all keep operating metrics. it's really the reflection of the execution of the team. i'm very pleased with the improved rate of innovation. our go to market motion is getting better and better. we've always had a direct channel and we're watching and ramping up. and overall i think docusign is well poised. we believe that the agreement space has significant growth potential and that we are the best positioned to capitalize on

that. >> how concerned are you about what appears to be a bunch of competitors picking off kind of smaller pieces of the pie, if you will? >> you never want to be -- i think we're holding our own. our win rates are staying steady. we are advancing more offerings to companies of all sizes. as you saw some of the releases this quarter. and i think as we look ahead and we think about the broader agreement space, i actually think the gap between us and folks who provide signature will only widen. i'm feeling very good about our competitive position. i think we made good progress on that this quarter and we intending to get as much business as we possibly can

been. >> speak about the macro pressure. that's something you did warn about in terms of the overall enterprise space. i they alsos have the resources to apply. >> the good news for docusign is we are incredibly diversified and if things are a little tougher on one side, we can make that up elsewhere. we did see some nice growth out of this. i think with our highly diversified book i'm feeling good. from a macro economic outlook, i can't forecast that. we're returning the business as if things are going to continue the way we are.

>> you remained quite focus about signatures. there have been questions among some analyst investors, is this a platform that could but i ask because i think there's a five-year question around what this business looks like. >> yes, we're very proud of the foundation. we have a new signature but the agreement -- if you think about all the workflows involved in the, the signing part, and made it simple and delightful. but all the other steps remain open and i don't think anyone has done a particularly good position to reshape what we call intelligence agreements.

you can >> you can use a.i. to make that better. and also once you have your whole library of signed agreements, you can run analytics and see where am i not getting what i negotiated for? where am i having compliance issues? it's simply not possible to do that well today. we are poised i think to unlock that. that's what i think is the bigger opportunity. agreement intelligence. >> and people talk about a.i. all the time. that was the other piece. is that a threat to your business in some ways, longer term, or do you think that's an opportunity? >> i think -- you know, i do think it's a big opportunity. but i think it's an i've seen

come can help us with our agreement process needs and at the same time, there is this or even just strategic information. so that tension exists in many of these question and so vits important to have a highly trusted position. we already have many of their agreements and have kept them and respected that trust for a long time. and so on a consent basis, if they opt into it, we can help them extract more values from those agreements. we have something called the privacy a.i. labs, which essentially is like a sand box for large companies to upload agreements and try it out and

see how it can help. >> okay. alan, appreciate it. and by the way, note ris are now available in 50 state. are you going to be able to do note ris yourself or are you going to have people -- >> we are. the companies both use their own in-hour notaries. i think notaries are a necessary element of providing a full sweet of solutions in the u.s. but i don't think that's the long-term position. what we've launched this quarter is what we called i.d. verification with digital liveness. you can just take a picture of your i.d., thenyou engage in a very short video chat. it's fully automated.

it's just verifying that it's you on the i.d. and you're present. the combination of those data points is so much better than going into a branch or a notary. we think that's the risk trade off of risk on one hand and convenience on the other. >> so you need to persuade businesses. >> and we're already doing that. >> and legal teams, the. >> yeah, we do need to do that. i think in some cases where it's instructly required to have a notary in the u.s. there are lots of situations where companies are not currently using richer litigation strategies because the burden is too great. we can now deliver something that's both convenient for them and a think that combination is

super and we've seen dramatic results there. >> great. allan, thank you. >> thank you all. in today's launched an investigation into ryan cohen. "the journal" says the agency is seeking information from cohen about his trades and communications with officers or directors at bed bath & beyond. cohen took a $120 million stake in bed bath back in early 2022 and pushed for changes to the company's sales strategy before selling his nearly 12% stake in august of that year. the sale came just days after he tweeted positively about the company. that investment yielded cohen a nearly $60 million profit. it's why the s.e.c. is coming calling. former ftx executive ryan salem pleaded guilty in new york federal court yesterday to

campaign finance and money transmitting crimes. he agreed to forfeit more than $1.5 million in his part of his plea. he admitted that in 2021 and 2022, he steered tens of millions of dollars of political contributions, says here, to both democrats and republicans, i guess, in his own name. when the money actually came from alameda research, the hedge fund arm of ftx. he says they were made at the behest of sam bankman-fried. in bankman-fried's trial is set to begin on november 23. >> there have been a number of former ftx executives that have agreed to cooperate with the government in this case against sam bankman-fried. ryan salame had been holding out and wasn't going to, so this is a new development that he's actually pled guilty as well, agreed to forfeit $1.5 billion. i still can't figure out where

the heck he got that money. but agreeing to all of that. >> it appears that none of these people are going to have prison time at all. >> that's what it sounds like, and that must have been part of the negotiation. >> clearly. >> they must be offering all this. >> i think they're all going after one guy, which is -- >> sam bankman-fried. >> right. that's its own complication. fascinating case. anyway, it's due to start in less than a month, so we will have much more to talk about on that front. when we come back, though, we're going to show you what's moving ahead ofhe t opening bell. "squawk box" will be back.

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welcome back, everybody. the futures actually showing a little bit of improvement. the s&p futures and the nasdaq, well, never mind. nasdaq went negative again. s&p futures are barely there. it's been a rough week for the s&p and the nasdaq. nasdaq's been down for four sessions in a row. the s&p has been down for three sessions in a row but there is hope, and it is friday. we want to bring in sandy, chief client officer at aspirnt, and

sandy, what are you thinking? it's been a rough start to september. is this a surprise to you? >> it has, becky, nice to be here. the last time you and i spoke was january. we were worried that growth in the economy would be poor, then we'd be facing recession, so after a cushy summer and highs in the equity markets, we are cautious about what happens as we head into september, but also, you know, balancing optimism and pessimism. our clients are corporate executives, family business owners and entrepreneurs, and they're asking us one of two questions. one set of clients is asking, hey, equity markets have been so strong, maybe we should be pulling back on risk at this point, and what about cash? let's have some large cash positions given the attractive yields there. other set of clients are saying, hey, looks like we're looking at a soft landing, let's pour into risk. and in both cases, we're answering with the same answer, which is, we think it's important to stay invested, to

pay attention to prices. we're a valuation-based company. that's our approach. and diversification right now is key, becky, and we think it might be more important than ever. >> diversification how? >> well, let's talk about the basics of diversification. stocks and bonds. in our equity portfolios, we're staying invested in the large u.s. companies, growth and i.t.-related, but we are underweighting those, given the fact that they're so pricey and interest rate sensitive. so, what we've been doing with the rest of the equity portfolio is really barbelling between high-quality stocks, companies with really strong balance sheets, little to no debt, companies that are going to do well in good economic times and poor economic times, and on the other side, pouring into more value-oirnlted stocks that are underpriced and really haven't seen as much of the sunlight this year compared to last.

and so, within that value area, we're focused on financials, energy, and also health care. and then on the bond side of the portfolio, it's really interesting, three years ago as interest rates were going to be rising, we pulled back on bonds quite a bit. now roll the tape forward. we think we're closer to the end of the rate hike cycle than the beginning, and so we're looking to add more bonds to client portfolios, and in some cases, we have rotated a little bit into bonds this year, looking to add more with attractive yields, even compared to the cushy 5%. >> what about direct corporates? how long? both? everything? >> we're focused on the -- we really like the muni space. a lot of our clients are in high tax brackets. i think the ten-year treasury is yielding about 4.2%. if you look at ten-year muni bond, you can guess something closer to 5.5% to 6% largely after tax, and so that's where

we have been concentrating the bond side of our portfolios. >> what about health care? you said that was one of the areas you like. there have been so many concerns about government negotiations with big pharma companies. is that part of what you like in health care, or would you steer clear of the pharmas? >> well, you know, they're definitely part of it. we think ha from current valuations, there's upside as we look over the long-term, becky, so that's really where we're at. health care is really interesting. if you look at it over the longer term, it provides two benefits to a portfolio. one is growth over time. the second is lower volatility than the broader markets, and so with a lot of health care companies seeing declines so far this year, we think that there's a good entry point and nice upside as we look out over the long-term for our clients. >> sandi, thank you. i hope we don't wait another nine months until we talk to you again. good to see you. let's take a final check on markets before we hand it over to our friends on "squawk on the

street." take a look at futures. things have moved around a lot during the broadcast. s&p had been down in a bigger way across the board. dow was down, nasdaq down, still is, but not like it was when we began. dow off about 20 points. nasdaq off about four points. we hope you all have a great, great weekend. watch that show, 3:00 p.m. on cnbc this weekend. >> i will. >> about sports. and the open. >> yep. >> the open finals. >> alcaraz, medvedev. >> join us next week. we'll talk about those bets. "squawk on the street" begins right now. ♪ good friday morning, welcome to "squawk on the street," ai'm carl quintanilla with jim cramer. david faber is on assignment. bulls trying to shake off china concerns that had dinged big cap tech. apple is up slightly premarket. we await used car data