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, watching

potus at the g20. williams says rates are in a pretty good place. goolsbee suggests hikes are almost done. goldman is planning a new round of cuts. you'll hear what david solomon told faber yesterday. and the uaw rejecting gm's latest counteroffer, b of a now saying that a strike is "almost guaranteed." let's begin with the markets, though, and the nasdaq's four-day losing streak, jim. some firms come out, morgan stanley tried to defend what's going on with apple at least. >> the work that i have done, i spend a lot of time on it yesterday, saying it's just political ammo. we have to be careful how much we put into the idea that there is a real war against apple. huawei phone is selling well, but that's not unusual. huawei is the preeminent phone there, and i know they feel, what's 5g, all these things, every time we have had a new phone from huawei, it's been a

triumphant phone. it's local phone. people like it. but it's just killed the nasdaq. what you saw was some separation yesterday. you saw people buying stocks that were not semiconductor-related but just trashing all the semis. semis still call the tune in the nasdaq, but the enterprise software was very strong yesterday. so, i don't know. i look at this, and i just say, it's september. september is a month that you don't like the stock market, and what you're seeing is everything's kind of magnified. the bad is magnified. >> sure. morgan stanley, eric woodring's point is that they're not just worried about huawei 5g, but the notion that china is going to turn inward to a large degree, and that's, you know, $30 billion in operating profit. >> i've been saying this is an insular government. it could absolutely hurt them. it could -- they don't seem to be all that upset if the u.s. pulls back. remember, they used to be number one trade partner. now canada and mexico are number one trade partner.

there's a really amazing article in atlantic monthly that just came out last night, which says, his days are numbered. >> xi's? >> xi's days are numbered. i know that people feel that you could never overthrow him. they may think that is a wrong takeaway from the article because it's so severe, but it's just about how the models failed. it's time to move on. and the models failed because of unemployment. so, you take on the -- one of the largest employers, and you just say, look, i don't care. that's something that xi might want to do, but there are other people in the government, and they're not buying it. when political elders talk to the press, we once saw someone basically escorted from the building because he was against -- that's not happening anymore. "the atlantic" piece is devastating. there's also a piece this morning about how the belt and road initiative, which is like, when you go to milan, italy, the biggest embrace of the belt and road, this is their foreign policy, they're thinking about pulling out in december. a lot of countries are in debt to china. this is not china's time.

they're being eclipsed, and we all, i think, are very set on thinking it's all that matters. i'm not saying it doesn't matter. i'm saying this one may be past its peak and the past its peak is not apple, it's china. >> george will, great column about how china's economy is getting calcified with this leninist thinking. obviously, xi is not going to the g20. potus is not going to meet with premier li, we don't think. b of a with this chart, we're trading more with mexico than we are with china for the first time in 20 years. >> mexican trade has -- they've made it very easy. one of the things that's happened is that if you want to do business in mexico, it's easier than it's ever been. but what i come back, i'm absolutely shocked that the youth unemployment, and that's exactly where apple would fit in, that the desire to almost bring their civilization to a halt in order to show, listen,

we're in charge. that's puric, and i'm surprised it's going on. mention of lenin. if you go read "what is to be done" which is a seminal text by lenin, that's not pro-business. >> no. >> it's pro -- i mean, lenin was a mass murderer, it's only 140 pages, take you no time to read, but it is absolutely, i would say, a manifesto against business. >> that said, next week's going to give us a great diet of stuff. the apple event, cpi, ecb, oracle, lennar, adobe, barclay's financials conference, dreamforce. >> i think that marc benioff is going to tell a very good story at salesforce. i think adobe, we had so many numbers raised ahead of time, they're probably going to do good. >> upgrade at mizuno. >> i think oracle has become the star of the show. katz was here. it's up a quick 11.

i think that they have cemented their relationship with jensen huang. yeah, that's a nice move. cemented their relationship with jensen huang, the ceo of nvidia. everyone tries to be in the picture with nvidia. it is very funny. jensen huang is a very cool guy with his motorcycle jacket. all you want to be is in a picture with jensen and your stock goes higher. he's an incredibly modest man, so this must be terribly embarrassing to him. but he does make the rounds. and he has endorsed arm like you wouldn't believe. twice. >> i imagine you were annoyed at the coverage of his stock sale yesterday. >> yeah. >> $42 million is less than -- a fraction of 1% of his holdings. >> the man has built -- look, he was in oregon state's class the same year as wes, and i think these guys are just remarkable. i have learned not to trust stock sales as much as i used to, because so much money has been made that it's almost like if you were the advisor -- let's say you worked at a place like

goldman-sachs, and you woke up every morning and first of all, you immediately said that solomon was a character. then you would say, hold on, i got to call them and say, i got to sell something. >> right. let's get to goldman. after yesterday's close, of course, david solomon talked exclusively to david at the communicopia conference out in san francisco. they talked about the negative press that solomon has been receiving. take a listen. >> i do want to start off on kind of what i've rarely seen in my career, this highly unusual avalanche of stories focused really, david, on your personality defects. it's been bizarre. "new york times," "wall street journal," bloomberg, "new york" magazine. why has this happened? >> you know, i can't give you good reason why it's happened. what i can say to you, david, is, it's not fun, obviously, watching some of the personal attacks in the press. obviously, we're a big organization. we're doing a lot of things in the world, and you know, we should be scrutinized, and we

are scrutinized, and we watch that scrutiny very, very carefully. i don't recognize the caricature that's been painted of me. i have a lot of colleagues and clients i talk to. they don't recognize that caricature either. and i tell you a lot of them, particularly my colleagues, are not shy about expressing their personal views. but look, i always reflect on it. you look at it, and we're focused on doing what we're doing. >> look, first of all, the interview was relentless, and i really appreciate that david did not just accept that answer. i went to a partner, and i said, look, this is all nonsense. guy's in good shape. h he said, oh, you're taking the over that he might not be fired? i said, what do you mean? he said there's a big pool about whether he'll be fired or not. i said, there's a pool of people who work at goldman-sachs that are betting when he would be fired? and when i hear those things, i say to myself, all right, i

totally understand that the long knives are out. i totally understand. but at the same time, hey, the numbers are pretty good. this is a business. this is not something where you just say, you know what? i don't like the guy. what it says is that you think you may not get your share. i want -- i was debating with jeff marks from the cnbc investment club, maybe we should buy what solomon is doing, because he's doing a good job. then there's a story today about him firing underperformers. are you kidding me? when i worked there, we said, okay, deadwood, who's out? deadwood. it's the first time i ever heard deadwood. i thought that was like sequoia. no, who's deadwood in your group? i'm like, well, i got this guy is deadwood. all right. so, i mean, what is this? i mean, suddenly, it's an onslaught? the deadwood department? i mean, honestly. >> it's not unique to goldman. lots of companies build this

into their model. ge was a great example back in the day. >> last night, there was a player who played really well for the lions, except for his name is kadarius toney. at the end of the day, do you think he would be kept as a partner? he's like mr. deadwood. he's the king of deadwood. >> well, did you see what mahomes eventually said? he said, "i trust him to make these catches, i don't think you'll see these drops in the future." >> he ain't never throwing to him again. i think we have to start recognizing that goldman is not necessarily the sweetest place, and it's never been a sweet place. when i got there, i mean, i was like one of five people. there's only 20 in my class. it was very clear. i was in a meeting. i was at an introduction. and i got permission to go to my sister's prenuptial dinner, and it was taken away when i went to the meeting. they said, no, you can't go. and i said, that really hurt my

relationship with my sister. they said, choose, your sister or goldman. okay. goldman. >> more importantly were his comments to david about the markets and how optimistic he is on some of these important tech ipos. >> okay, thank you. i mean, i think he should talk more about how rene haas is doing a good job at arm, instead of ow they're doing a good job. the arm deal, i think, is very solid. the instacart deal is not good. they're decelerating. we'll talk about albertson's. tough business. but we may have real things that happen this fall. so, again, i mean, the bottom line for me is solomon -- i'd like to buy his stock. i don't really care what he does. i don't care if he flies planes. how about if he does eps? like, i judge a guy by eps. he's an eps walking around like a man. i like that. >> are you saying that a buy order is under consideration? >> oh, yes, absolutely. i think you buy goldman here. do i really care that people don't like -- look, i thought it

was interesting that david said, five partners just left. immediately, i just said, they got the memo. you're an underperformer. someone was, like, quibbling about back to work. they don't understand the culture at goldman. goldman's culture, for me, was, you want to work saturday or you want to work sunday? you got to pick a weekend day. >> i think that is the complaint among many within the firm, that it's -- that they don't recognize -- externally, they don't recognize what they were goldman being. >> we've addressed lenin once. his thesis was if the rich are unhappy, it's their own fault. got a lot of rich people unhappy with solomon. i'm tired of their sour grapes. they've got smaller houses, they're on dune road, they don't want to be away from the water. people have made a tremendous amount of money at goldman, and they should just shut the heck up. >> we're going to get barclay's financial conference next week. >> that will be fun. >> we'll be looking for more

commentary, whether or not this optimism is matched by rival firms. >> i'm seeing green shoots, what can i do? we got deals coming. by the way, there are a lot of deals that will be medical. a lot of biotech, particularly because they approved the government's backed away from going against the horizon-amgen tie-up. i think we'll see a lot of deals. i think people should get a little more excited within the next -- after they say, okay, we're taking away their macs and then you know what they're going to do in the end? they're going to take away -- they'll be -- the air mac will be the next. i mean, can you imagine what they're taking? how about the cover to the phone? that goes. you know what xi doesn't like, though? xi is saying, i don't like that -- he doesn't like the three cap. >> the otterbox. >> he wants everyone to go to the iphone 5. >> one of the other events next week is the expiration of the uaw contract, and in fact, the union did call gm's wage hike offer insulting yesterday ahead of that deadline.

we'll take a fresh look at that, along with the manheim car inflation data rolling in just now. futures on this friday morning, a little bit mixed here, but close to the flat line. resqwkn e re" straight ahead.

let's get to phil lebeau. >> if you have been looking at used car prices and you have been saying, boy, when is it going to be a more normal market? that's the headline from the latest data, which looks at

august used car prices, used vehicle prices. manheim auto actions puts this data together every year. cox automotive says in august you saw the prices go down 7.7% compared to the same time a year ago. why do we say this is more normal? because in a normal market, you might see a 0.3% increase month over month. that's what we saw august to july. they believe, manheim, that things are starting to even out a little bit. the average retail price continues to tick lower. ahead of a possible uaw strike, whether it's used vehicle prices or demand, you want to be in the dealership stocks. that's the general feeling from people i've talked with on wall street. and if you look back back, historically, yes, their supply might be hurt in terms of new vehicles that they take in, especially if they're a big three auto dealer, but the demand is still there in the market and that's why the dealership stocks, they do well,

whether there's a strike or not. take a look at gm, ford, and stellantis. we are one week out from the expiration of the uaw contract. all signs indicate we will see some type of strike next friday, whether it is one auto maker, which is what most people i've talked with believe it will be, or as they have threatened, all three of the automakers are struck at the same time, which i do not think is very likely, according to people i've talked with. don't be surprised, guys, if this is a long a contentious one. >> in this case of ford, they've got a five-month war chest. i believe the uaw may only have a five-week war chest. ford is doing a charm offensive. you can't watch football without hearing how great it is that it's union made. >> they're all trying to do a charm offensive, speak to their audience. >> it's easier just to strike the hit stellantis. i know they have battery deals,

not so good. but if you're ford, if you're any of these guys, the language -- the rhetoric out of the union is kind of like walter reuther in the '50s. will we see lower coming in next month? >> no, i don't think so. first of all, they have built up their inventory relative to where it was a year ago. but it's not back to where it was in 2019, the last time there was a uaw contract. by the way, look at the inventory levels for stellantis. 120 days. i mean, they know what's coming. they are prepared, and really, with stellantis, you're talk about jeep and ram. that's really what drives the engine at stellantis. with regards to ford, look, they have made several proposals. i think ford -- people say this. is ford in the lead among the big three in terms of negotiations? it's hard to say anyone is in the lead, but when you talk with folks that we have talked with, it looks like they are probably

in the best position to reach an agreement first. now, we're a long ways from an agreement. let's be clear about that. we will hear this rhetoric from the uaw next week, week after that, week after that. this is their moment to get the best deal possible, and shawn fain is not dropping the hammer. he will continue with this theme. he's against everybody. corporate media, we don't tell the truth, the world doesn't realize what's going on. he will continue with that theme right on until they finally sign the contracts. >> that will get that lenin handbook again, "what is to be done." don't take long to read. >> thanks, phil. we'll get cramer's "mad dash," countdown to the opening bell on this friday morning. one last look at futures. more "squawk on the street" when ce ck. every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to use predictive monitoring to address operations issues?

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live shot of new delhi this morning as the president arrives for a two-day g20 summit ahead of his visit following to vietnam. lot of cross currents on this one. india, of course, and their growth challenge versus china. the ongoing efforts to increase u.s. influence. the uk, perhaps, trying to convince india to call out russia on ukraine. we'll talk about that maybe a bit as it applies to the markets. meantime, the opening bell is coming up in just under seven minutes. to duckduckgo on all your devie

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the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. >> time for cramer's "mad dash" as we count down to theopening bell. >> carl, i love a good cup of coffee. the best ever is the annihilator from dutch bros, symbol bros. they're repeatedly on the show and i repeatedly asked them to raise money. sure enough, last night,

$300 million raised, and $26. if you look at where this deal is, you got to be excited if you got in, because you're already up because it was priced at $26. this is the kind of thing, a $300 million equity offering comes under the market, you get in it. this is some of the things that might be positive. this is a green shoot. so, i like it. i wish they had done it higher, earlier, but they are -- they're appreciably larger than they used to be. but if companies can tap the equity market, they will, and the brokers make money on these deals. >> right. are you worried at all about -- they always say mcdonald's breakfast day part, for example, is a proxy for employment. you're not going to get a cup of coffee unless you have somewhere to go in the morning. >> dutch bros used to have a huge problem hiring managers and about a year ago -- actually, about six months ago, they said, it's no longer a problem. people are no longer job hopping. they said, lot of people are job hopping, mcdonald's, dutch bros. that's ended. and that's ended across the

country. >> you saw walmart yesterday. trimming wages for new hires, and atlanta fed backed that up as well. >> i thought that was amazing. walmart has really been a leader of paying more. it's over. it's over. i mean, if you want a job now, you're going to have to make calls. >> right. >> and that's very, very different. >> your point has been largely that that's been going powell's way. >> oh, totally. >> which is why i wonder what you think of b of a, hartnett today saying higher for longer means more risk of a hard landing. >> i saw it, and what's it like to be so wrong so early? i mean, am i going to have to -- i don't want to make fun of the guy three months from now. >> nibble at 3,600, gorge at 3,000, right? that was the call. >> soft landing, all the rage, but a ain't a bond manager in the world with more than $150 million -- i can tell you something, those people have lost billions of dollars. i'm going to play my game here.

michael hartnett, my feeling about him? nice guy. >> oh boy. his other point involves oil. his main chart, jim, looks at the supply in the spr, 40-year low as we get west texas in the mid-80s once again. we got some strikes activity in nat gas in australia. >> nat gas jumped to $11 in europe, which is a great opportunity for our nat gas companies. if the saudis want to take it higher, they can. lot of talk about whether the saudis want to elect biden or not. there's not as much demand at these prices, but that hasn't really mattered. it's a manipulated market. >> interesting. also, people today looking at run rates in china refineries actually at the highest level in some cases since data began getting tracked. >> i'll see that, and i'll raise it with copper being the lowest that it's been in a very long time. mixed messages. >> let's get the opening bell

here. and the cnbc realtime exchange, at the big board, it's broker de dealer drive wealth. at the nasdaq, podcast one, an advertiser-supported podcast company. that's a nice entry into what disney did yesterday. seven handle, jim, for the first time in several years. >> yeah, we got michael on this morning really talking about the upper hand belongs to charter. i don't know what to do if i got the charter piece of paper that just says, listen, bob, bob iger, you have to give us disney+ for free for our viewers, and you have to give us espn+ free. that's where the intellectual property is. how can you give that away? i still think that in the end, you're not going to blame mickey mouse for the mickey mouse way you're not going to be able to see the u.s. open. >> chris winfrey of charter did say, if we're moving on, that's

okay. barons took that to mean, separation from espn is not completely impossible. >> other ways to get it. then, of course, we're reading in nathanson, followed through, that video costs may be higher than you think. so, maybe this isn't such a bad thing. look, i think it's posa pox on h houses. i'm angry myself that we own disney stock. david's not here to boeing me. that's a reference to -- >> it's a verb now? >> he hectored me every day about boeing. we owned some great ones, and we own some bad ones, and that's one of our worst ones. basically. disney. >> disney, back with an eight handle this morning. we'll see, given some of the comments out of charter yesterday. overall market here, jim, 44. it's been sort of a chop, hasn't it? >> look, i kind of expect to get through this period, maybe get september down to be 2%, 3%, and then we have a nice rally from it is my thinking. there's a lot of stocks i really like that are just crushed here.

and i can go -- i mean, some of the industrials, the rails have been crushed. today, there was a great note out about fedex, and i think fedex, it's their time. they're doing very well. if i can get that stock a little bit more from its high, i think that's a terrific opportunity. it was just a nice piece of research. there's things -- look, docusign was a decent quarter. people don't think there's enough growth. i worked a lot on restoration hardware last night, and i know it's down 23, but gary friedman is the ceo. when i work with him, he bought back 17% of the company. you've got the new source book. it's pretty attractive. he did not really say a lot of the negative things that the analysts are attributing. i think he was being, look, we have to spend a little more. that one is intriguing to me. it's down 25. it was down 35 last night at 4:30. let's take a look at that. i see a lot of positive notes that i like. i thought this first solar notes were beautiful after their analyst meeting. that one can definitely go

higher than up four, so i've got things i want to buy. medical devices seem to be very undervalued here. i just think there are a lot of situations that have given up the ghost along with apple that don't deserve it. >> so, you think -- you're sort of ready to get interested in september, despite your concerns. >> very much so. if it goes down 2%, 3%, absolutely i'm interested. i'm not so interested, i'm not buying into the swift lift, the swift economics. i mean, this was a piece by bernstein about whetrever she goes, rates go up in hotels. >> taylor swift. >> the swifties. i'm not reaching that far, that europe might turn, that argentina in november is going to make a difference. i'm not willing to make that bet, but i see things i like. i think you got to go through this period. it's the same period we always have, and it's an uncomfortable period where you feel like -- you feel a bit of a, you know, silliness behind stocks, but next week, no. get the finish. let these sellers finish. let them out. >> your point about some of the transports working here.

csx is going to lead the s&p. u.p.s., by the way, jim, going to match the price hike from fedex. average hike next year will be 5.9%. >> i think that stock is well below where it should be. i think, by the way, norfolk southern, 2.7% yield, selling at 15 times. good company. you're looking at some of these stocks are selling at lows we haven't seen in a long time. i see things i like. i just want things to settle down. i want no heroes. no one be a hero. you tweeted yesterday that, what, there was a period where all three top songs were from movies. >> that's true. this week in ''''85. >> that was such a great tweet. i follow you so closely. i tell my wife things, and she says, you're a cooler guy than i thought. i never mention it's from you. >> there were disinflationary comments out of kroger. >> that was a, i thought, a very

negative report, and it doesn't seem to be sticking. they missed the same store sales numbers. they missed the revenue numbers. but a lot of people still like it. i do think that they sold a series of stores to cns, and i know that they think they're going to be doing that well. that's piggly wiggly, but if you go back, and you look at a law review article written for the "harvard law review" called "market power and inequality," with lina khan as a c co-writer. she talks about safeway and albertson's, and then a very bad deal, and she says, this is opposite of what rodney mcmullen, the excellent ceo, is going to be on from kroger, even if divestitures could be perfectly tailored, and if they reserve competition, narrow markets, it absolutely is true in every instance they would

fail to advance the citizen interest standard. that's her standard, and that is the standard that says this deal is never going to happen. >> really? even with this opioid settlement? >> it's all union. look, this lina khan, this is a very interesting law review. market power inequality. anybody can get it. it just says, i'm blocking these deals. >> there was a point at which you didn't think amgen wasn't go. >> i talked with bradway, the ceo. he pledged to me that he would not do this tying of product. she said he would. if a ceo says, listen, i'm willing to swear i'll never do it, she had to back down. i think that she will lose in court. i think the cns deal is fine. my daughter lived next to a safeway that was turned into a hagen and was back to being a safeway within a couple months, and ftc blessed that deal in 2015, and they have lived to regret that they blessed that deal, and i feel like, well, they're back to the mill now with the supermarkets, and lina

khan will block it. ftc. she'll block it because of the doctrine that she talks about tin this, which is a doctrine that is very hard left and doesn't fit with our country. >> we'll talk to rodney at 11:30, as you saw. some decent margins in there, operating margin up 35 basis points. not as good as rh. >> i know gary friedman is down in florida doing things that could help the store. the english, the uk store is open. i do think that this stock had run into the quarter, which is one of the reason why it's falling so hard. >> also, some macro worries. i know you noticed b of a trimming to $415. not your favorite call today. >> okay. you know, look, if interest rates stop going higher, carl, we're all going to look at this stuff and say, why didn't we buy? i'm positioning the trug tst to able to do some buying, and i think that's -- it's not just going to be natural gas.

i think there are things. we have interest rates that i think kind of settling in here. i watch the 20-year, 4.5%, there was some article in the "journal" today about how home prices have leveled and are coming back. if you see interest rates and mortgage rates go to 8%, there's going to be a lot of excess homes. i'm not buying that piece. i'm not buying the overall negativity that i'm hearing. where were they when you should have been negative? i have enough sources on apple to just not be able to say it's the shutdown. i just -- i just don't get it. i don't. i mean, i just feel like i have too many sources that are saying, sales are still very good there. >> yeah, yep. >> i could laugh at my sources. i do have close relationships i've built over many years. i didn't fall off the turnip truck and say, listen, i think it's fine. >> up almost a full percent this morning, bouncing off the week low. we mentioned ford earlier. cover of the detroit news today looks at this new $4 billion

line of credit. they've trained 1,200 salaried employees to man parts depots in 15 different states. so, when you and phil were talking about circling the wagons, is that what you mean? >> well, yeah. i think that jim farley is ready to take a strike from ford. what's interesting is the thing you haven't heard yet is mexico. when do you hear -- president trump is not president. you know what, guys? we're building up in mexico. we're going to pueblo, the largest factory auto in the world is for vw. you've got great german companies. there are cities in mexico that will give you the store, health care taken care of. unfortunately, you can pollute at will. fabulous workforce. don't count on it, union. don't count on us not going back to mexico. don't count on it. too good a workforce. very easy to do business there. ksu, well, now canadian pacific

rail, goes right through the town i've got a place in, and union pacific too. it's too easy to build down there. and this president, i know he's a union president, he's self-proclaimed, but there is a country that we do a heck of a lot of trading with, and it ain't china, and it ain't canada. but it is mexico. they've come on very strong. lot of -- by the way, there's a lot of stability in mexico right now. >> political stability. >> yes. >> yeah, could be interesting if they wind up with a female leader, right? >> wouldn't that be something? underrated country. no one -- no president seems to take them serious, drives me crazy. >> i know you took some interest yesterday in bed bath. >> yes. >> gary. >> got an interesting story there. >> yes. and -- sorry, ryan cohen, and the s.e.c. investigation that the "journal" had. >> that's a complicated issue. now, he did get three people on the board of bed bath, margery bowen, march 25th, his people, and then he said he gave a positive tweet during this summer, august 12th, and then about -- he had, well, an emoji,

smiling emoji in response to a negative cnbc story. he said that, at least our card is full, had a picture of a woman, and then he sold the stock not long after, sold his whole position after he gave the positive emoji on august 12th. i'm calling it quizzical if not ill advised. >> we'll see where they follow through on that. >> the s.e.c. is still the s.e.c. it's not criminal. if you get that s.e.c. notice, by the way, you can't throw it in the waste can. it's not like shawn fain from the uaw. you get it, you got to call a lawyer, and what the lawyer says is, they use terms which are, like, you know, there's a bad set of facts here. when they say "bad set of facts" what that means is you're about to have brain surgery and you didn't know. they're huusing a high-powered black & decker drill. >> on a.i., microsoft, jim, interesting, people watching the

site visits to chatgpt, which have been down month on month three months in a row. >> look. adobe, you can do chatgpt -- by the way, i always -- before i do my fantasy line-up, i went to chatgpt. absolutely said, jim cramer likes to draft receivers, and it gave me a list of receivers. thanks for nothing. >> you think it's novelty, wearing off? >> you can do a lot because what happens is i had an outfit like clearwater on last night, which does software as a service for, let's say, trust funds, and you can ask it questions, and i had the other day crowdstrike. you can ask it questions. it's low code. that's what matters. right now, you have to have people who went to stanford business school that cost a fortune, and they code it. it's like you need a translator. now it's like, hey, what was that north korean hack all about? it comes back and says, that turned out to be a consumer packaged goods company. it can be very valuable if used correctly. >> that's part of the mizuho call on adobe. >> adobe, the firefly -- it's

incredible. you can make your stuff look better than anybody. it is so easy to change colors, change design. it is remarkable how quickly things that used to take days take 20 minutes. my daughter designed a dress, it took two months. with the adobe product, 20 minutes. >> right, right. and now it looks like meta is going to embark on this ad campaign that will -- what's the argument? the impact is real. basically, pushing the notion that these innovations and the productivity that results is going to happen faster than we think. >> oh, man, the stock's been going up because he hasn't been talking. he just jinxed himself. that's terrible. he just -- he just kadarius'ed himself. >> 303. yeah. >> witsh he hadn't done that. this is a good time to be quiet. when you have a stock that's going up, be quiet. under the radar. go under the radar.

go surfing. >> yes. >> gopro. >> we're in a period, jim, with these conferences where we're going to be looking at -- >> next week, the industrial conference, and morgan stanley. i have to tell you, this is a period where these conferences are moving stocks left and right, and they blindside you, because you can't believe that someone -- that first solar would give a conference that was so bullish it would be three people come out today bz and sa that's the solar company when the solars very horrendous. >> health care is going to be coming on a couple conferences. lilly today, jim, new record high. >> goldman-sachs had a piece out talking about how it's incredible, but we had dr. scott gottlieb on this morning talking about how it could be good for alzheimer's, which is not really in the -- >> cognitive disease. >> that's not in the portfolio. >> no. is there any end to what these things may not be able to help? >> yeah. i think the chiefs wide receiver. no help whatsoever. >> butter fingers?

>> not worth it. that chiefs wide receiving core is like, no. i hope they give it to the patriots defense on sunday. national game. look at this. show the kadarius. >> yeah. you want to see the drops. >> let's see that volleyball. you ever watch volleyball where you up it and then they spike it? that's kind of -- well, no. we didn't -- give us the -- it's all right. maybe you're not allowed to show that play because it was so horrible. >> yeah. apple in the top ten on the s&p, jim, is going to be interesting. >> well, i mean, people make -- people have sources, and there are stores, and people are lined up to go to the stores, and they're not being the -- the party's not taking the people out and saying, i see you're buying an apple, your career is finished. they have something like 46 million extra apartments. there's some number in "the atlantic." they have a -- there's no problem getting an apartment in china. that's my take. >> i saw a stat today that said they -- they've been able to --

they can create enough concrete to basically make london a parking lot. >> they have enough apartments to -- for everyone in japan. look, they're a failed society, and we got to stop thinking that they're the biggest powerhouse on earth, and i think the idea that we can slow -- people are saying, listen, we've done a bad job, because they have the five. they have, you know, they've got 5g. well, come on. yeah, they've got 5g. anybody could have 5g. what matters is that anybody -- can anyone have such a bad balance sheet as that country? >> right. >> it's so many companies about to go under. >> i guess the question is, why isn't -- why isn't that a huge liability for a nike, right, which is once again in danger? >> there are other -- there's two other -- there's two chinese companies that are apparently making inroads on the jordan. don't forget, the auction, it's not really an auction. i know nike's been doing these things at 10:00 where they do --

it's a lottery system in our country. nike is very hot here. i know that i don't want to dismiss nike entirely. it's a pretty well run company. >> yeah. anything -- if it loses 97, you're talking about levels that will take you back to november. >> but lulu, the numbers for china were fantastic. >> quick reminder, you can always get in on the cnbc investing club with jim, just sign up and find out more at c cnbc.com/jointheclub or use the qr code on your screen. it takes you right there. as requester yields, some slight relief today, at least on the two-year. we are going to get wholesale inventories in about 15 minutes. watch for baker hughes rig count as well later on today and consumer credit. right now, two-year, 4.93%. back in a moment.

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cnbc going to go courtside with leaders from across the sports landscape to break down their game plan for these rapidly evolving businesses. you can watch "game plan" tomorrow at 3:00 eastern time right here on cnbc. meantime pretty flatish action. dow up 3 points, s&p 4462. the beat led by some info tech and energy up almost 1%. we'll get stop trading with jim in a minute.

it's time for jim and stop trading. >> snowflake a lot of people don't realize if you have a.i. you need "i," someone at the company who understand. frank slootman is using a.i. to his advantage and people should take a look at this report, do some homework on snowflake. i think the stock is making a big move here and slootman is the guy you can rent the cloud. it's a great business model. has a terrific guy. >> quarter wasn't too bad? >> no. he had spoken to me at the cnbc council, and he was downbeat. he's singing a new tune now. you need economic activity.

there's some economic sensitivity to snowflake he was worried about, and i'm more bullish on the economy. >> after snow, splunk, certainly cisco. >> cisco had a great quarter. >> palo alto and crowd, there's decent software. >> enterprise software is where it is at and people don't realize they're making a comeback. it's kind of happening like without -- semiconductors, enterprise software is where the money is. >> is that going to get reflected next week? >> i think it will. see marc benioff. a lot of guests out there it's going to be a good time. >> the only calls were maybe j&j and p&g. >> p&g, [ inaudible ] i didn't like that at all. the dollar is strong, but it kind of is at its peak. j&j has not been -- has been quiet. there's tylenol.

that's kenvue. i think j&j. we gave up on j&j for the trust, but i feel -- i hear the word asbestos, even though -- i -- the previous management said absolutely not. no asbestos. the juries aren't buying it and the juries are a jackpot. j&j has to do what 3m did with the combat arms trial. >> how about tonight? >> when you're in the super bowl you have them, and you might ask me, how do you go to a night game and the next day do work? you go to celsius. four before the show do anything you want. celsius is on tonight. topped 200. now when this -- this thing was being shorted at 40 and i happened to have to pull it -- i didn't go to sleep on tuesdays when i was in college. it was a waste of time. this -- you don't need to go to

sleep with celsius. sleep becomes a waste of time. >> yet you continue to put up with this. >> we make such great coffee here. nothing like the annihilator. i have dutch bros, up for three days. >> good luck this weekend. see you tonight on "mad money." when we return wells fargo's mike mayo on the banks and his reaction to faber's exclusive with solomon in a minute. every day, businesses everywhere are asking: is it possible? with comcast business... it is.

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good friday morning. welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla. we are live as always from post nine of the new york stock exchange. david faber is on assignment. still. stocks in the early action better than we've seen in recent days. s&p up about a quarter of 1%. what's green, some of the cyclical groups like materials. energy at the top of the list up another 1%. technology is going strong today. the nasdaq comp is higher by a third of 1%. all the averages lower. nasdaq the hardest hit down almost 2%. 30 minutes into the trading session. here are three movers we're watching starting with kroger.

the supermarket chain beating estimates and will pay as much as $1.2 billion to settle most nationwide opioid claims. more on the quarter in just a moment. plus, snowflake shares are rising. d.a. davidson initiating coverage on the cloud stock with a buy rating saying snowflake is set to benefit from increased demand for a.i. applications. look at rh shares, plunging. the retailer hosting a beat but third quarter guidance short of expectation. ceo gary friedman saying he expects, quote, the luxury housing market and the broader economy to remain challenging throughout the full year of 2023. >> final batch of data to close out the week. wholesale data with rick santelli. hey, rick. >> inventories and trade. a few surprises here. on the july final for inventories, we end up with mys now 0.2, which started out minus 0.1, remains five consecutive negative months in a row on

inventories. but it's a bit of a different scenario with sales. july sales expected to be up 0.2%. came in four times as strong, up 0.8%. this is the best number since june of '22 and what's tells me, sales firm up, inventories are sure to follow. something to follow. as far as interest rates, right now at 4.92 for a two-year, up 4 on the week, for 10-year at 4.20, down 5 on the session, up 2 on the week. sara, back to you. >> rick santelli, thank you very much. higher yields the name of the game and fed speak to talk through ahead of the quiet period which begins officially on saturday. they're in quiet mode ahead of the fed meeting. laura logan speaking, dallas fed president a voter and she made some news talking about a potential skip. they seem okay with all of them,

even the hawks. she's one of them, not going higher in september, but said another skip would be appropriate while we meet later this month. anticipate not convinced we've extinguished excess inflation, but in today's complex economic environment returning inflation to 2% will require a carefully calibrated approach not endless buckets of cold water. she said further evaluation in coming months of the kauth and outlook could confirm we need to do more. so she would probably be one in the camp that would say, okay, in september. they seem cool with it, especially waller, kind of led the hawkish camp, but maybe we need to rise if we continue to see firmg inflation or maybe the challenge talking the market away from the cut narrative into next year, which the market starting to bake in a first half cut. >> trying at least. the chicago fed paper earlier in the week that said the fed has done enough to get to the target in '24 without a recession.

we have some confirmations with cooke and jefferson and kug her, fcc commissioner. more political stability to the fed this week. >> maybe. fed's john williams, essentially number two, votes at every meeting, the new york fed president, speaking yesterday as well and made it sound like he's thinking they've done a lot already and things are moving in the right direction and we have a policy in place, but we're going to need to continue to be data dependent, watch developments and assess what we need to do. very good place in terms of a restricted stance of policy is what a really people are noting. he also added that the fed has done a lot, so it feels like the center of the fed more is thinking we're good and there's a higher bar for having to raise rates further. people are talking about that as well. look, the problem for the market, carl, lately, and this has been the story of the week and the stumble, stronger oil prices and we get a cpi report

next week which should show us a high month-to-month number. 0.6% is where bank of america is because of rising oil prices and energy prices in the last few months. the core will be important, we want to see that 0.2% to show the continued moderation in core prices taking out that food and energy. the problem this week higher energy, stronger dollar, high treasury yields. some are wondering whether the treasury yields are what u.s. is facing 9% budget deficit, highest we've had in non-recession and war times in 100 years and whether that could be a bigger headwind than we think. michael hartnett of bank of america wrote that this morning. >> he said between yields and energy, more opportunities for things to break. it's not like in prior eras where you had a lot of government debt maturing even at these rates wasn't the size of the debt on the government side that is maturing creating a lot

of risk. for the dollar, eight straight weekly gains, haven't done that in a long time. back below 105 this morning. >> the dollar story at the six-month high is a story of firmer u.s. data and i think the one of the week to mention is the services number, which was hotter than expected, and jobless claims lower than expected and weaker data especially in places like europe and china and that has caused their currencies to weaken. europe's industrial production data this week very week, leading to concerns that their recession is either happening faster or larger than what's happening here and that makes the dollar more attractive. we also see the big rate differential between the u.s. and china. we're still talking about higher for longer. they're trying to throw everything to boost their economy. the impact of the strong dollar, is not just that it hurt exports and hurts earnings from overseas companies -- u.s. companies that do business overseas, but it's a liquidity suck and bank of america did put out this great chart showing that a lot of

liquidity, trillion trillions of dollars v come out of the system in the last few weeks and that could be a headwind for stock. global liquidity that they track, and you can see with the dollar at a six-month high it comes down. just the take away that's a headwind for equities. >> lot of good charts out of bofa. the 16-year low, the percentage of china imports or imports to the u.s. that are chinese lowest since '06. and i guess we'll keep our eye tuned to things that ring of disinflation. kroger is a good example of that today. >> i'm looking forward to our conversation with rodney mcmullen who will join us fresh off earnings, fresh off his conference call going on right now because kroger they've beaten same-store sales for the last 14 quarters and this was a slight miss. there are questions about whether the fundamentals are deteriorating. the quote from the release while we expect the environment to remain challenged going forward, they haven't been talking about a challenged environment for while. so something to pay attention

to, of course. what they're seeing from the consumer, what they're seeing on disinflation. that is a part of the story of the miss when there's disinflation they get lower prices for things. how severe is it, is it going to be hurting kroger and a happening in the economy? >> yeah. between that, and i'm trying to think what else. the southwest airlines guidance, general mills comments about the food business, manheim, not as deep as prior month, you're still looking at almost 8% down year on year used cars. obviously, has a big impact we'll get from cpi next week. >> the question for cpi can the rise in services inflation not -- it will completely offset the disinflation in goods but not in a huge way by 0.1 or 0.2%. that's the question. services are the problem, not the fwooz. used cars have been off. we have someone who has something to say about that. let's hit the nasdaq coming off of four straight days of losses fueled by apple down 6% this week and is on pace for its

worst weekly loss in a month. our next guest says september is proving to be challenging again, but the tailwinds should prevail later this month. joining us tom lee. you always give short-term tactical trade around the inflation number so we get cpi next week. what do you think it's going to show and how do you think the market is going to react? >> i think next week is going to be a turning point for markets in terms of people being more confident that inflation is tracking lower. i know you mentioned services, but keep in mind, by far the biggest piece of services in cpi is housing, and i think that's where the market's thinking is changing. when you look at realized rent indices which came out and showed actually it's declining now or the fact that more fed officials are talking about trying to apply shelter real time rather than backwards looking, i think really the story is inflation is tracking lower than expected and i think

that helps. the selling that was front ended is going to turn into some buying, maybe starting today, but really beginning next week. >> so you have a new call here on tech and the nasdaq in particular? >> well, i mean, i think the sell-off in the nasdaq, especially because it does seem like it was led by the apple and the china developments and the potential risk of losing some sales there, that's going to prove to be a buying opportunity because for many reasons, but one, you know, apple is a structural partner to china, so i don't think apple will face the risk that many are worried about. if inflation is falling and companies are becoming more confident and we already know corporate profit revisions have been positive, that's going to get investors more confident adding equity exposure, but they're going to want to have exposure to companies like the mega cap tech. this is going to be a buying

opportunity. i wonder why you think consensus seems to be there will be a cut, at least in some point in the middle of next year and yet rates don't reflect it yet? is that a suggestion that the rolloff in inflation, if it happens, is going to be sudden and dramatic? >> carl, it is one of the mysteries of the market. to me the market doesn't always make sense, and what you're high lighting is two things. one, we know the fed doesn't necessarily want to apply more pressure to the economy. if inflation is 2.7, 2.8 next year and fed funds stays at 5.5 that's extremely restrictive. it makes sense for rates to come down. at the same time the 10-year yield has been drifting higher and i think that reflects the unknown because of term premium changes or neutral rate changes or just the sheer skepticism.

folks are saying even if august's cpi is good, that's three months and what makes you think that's repeatable. as long as that's the question and the fedex presses that skepticism and looks backwards, i think interest rates reflect the uncertainty about the path of monetary policy. i think that's going to change by november. >> what about labor? we kicked around walmart yesterday trimming wages for new hires. everyone talked about participation. is that a tailwind of your thesis? >> it is. at the start of this year people said labor markets are so tight that wages are going to spiral upwards in a runway fashion that rules more inflation. we're seeing the opposite. the unemployment rate is kind of sticky, but all of a sudden it's easier to feel positions, jolts has been falling, atlanta wage tracker shows job switchers aren't really getting a premium any longer. we're seeing a labor market

that's tight, but not one adding to an inflationary cycle. if inflation -- if we stay at 3, 3.5%, even 4%, that's consistent with 2% inflation. >> so you don't think the fed will have to respond to the fact that we've seen energy prices tick up? i mention what that's going to do with the headline inflation. i know they're a focused on the core and underlying metrics. doesn't the oil price rise feed into the economy and the price dynamic? >> i mean, it's a bit of an irony, right. the reason core was introduced was because food and energy were volatile and the fed didn't want to be responding to those, but you're right in the sense that we are hyper sensitive to any inflation risk right now and the public is and the white house is, so oil does matter. to me, is oil going to cause house prices to soar? that's your real services question. housing and just cars is 57% of

cpi, right. if oil prices cause home prices to jump the fed has a problem. >> monster categories. finally, tom, i wonder if you think the bulls should be heartened by the way equities held in, in a wave of i.g. supply this week and i wonder if you think ipos, if they are successful, take any oxygen out of the room in the coming weeks? >> yes. i mean it was good rerp tearlie this week because we had a ton of issuance and rates responded but the 10-year is sort of cooling off now. i think that's at least a green chute. ipos are certainly really important because it injects a lot of confidence to both retail and institutional investigators because institutional investigators get exposure to a sector by buying an ipo and really knowing the company and gives them conviction. if the ipo market opens up it's supportive of a year-end rally. >> thanks, tom.

appreciate it. >> thank you. >> tom lee. bullish on tech. as we head to break our road map for the hour, including a closer look at the financials as goldman reportedly plans for a new round of job cuts. noted bank analyst mike mayo joins us next. >> key part of the housing market about to do something it hasn't done in decades. what that could be signaling about the health of housing. >> drew rosen joins tuso discuss the season ahead. big show. don't go anywhere. you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ with your hearing, if you start having a little trouble, you're concerned that it's going to cost you money.

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goldman sachs chief david solomon talking to david faber at the bank's communicopia technology conference in san francisco and spoke about his decision to scale back goldman's business. >> i think the regulatory environment has changed and scaling those businesses in this environment is a little bit harder than it might have been in a different environment and we made the decision to pair it back. what i hear from most of our investors and shareholders they admire we tried something and they admire we made the decision that we didn't think it was working the way we wanted to pair it back and make a change a. we made a change and we're very focused on our core business of banking and markets nicely and we're focused on the asset and wealth management platform. >> faber talked to solomon about his optimism about the capital markets and ahead of important ipos. >> we do feel better about the capital markets. if you ask me to kind of look

ahead, you know, over the course of the next few months, especially if arm and some of these other ipos go well, i think you're going to see a meaningful increase in activity. it's often an anemic amount of activity. >> nothing happened. >> no. investment banking activity, second quarter, investment banking in the second quarter was a 10-year low and not hard to improve on that. i think we could very quickly get back to a normalized level of activity in the capital markets and good for goldman sachs. >> interesting comments as well as addressing the wave of negative press he's faced in recent months. >> yeah. which, you know, he's making some cultural changes at goldman and addressed the fact that it's tough, 400 person partnership he has to satisfy. meantime all this as the "financial times" reports goldman is planning job cuts as soon as late october and warning

of downside risk for the industry. joining us to break it down wells fargo analyst mike mayo, covers the stocks. mike, i do wonder what will happen to this chorus of negative articles and negative press around the culture when, if david is right, the investment banking business comes back and then the business as a whole, goldman is tied to that and performs better? >> as it relates to goldman sachs, winning cures all. if they get higher returns and profits and growth then i think a lot of these cultural concerns will fade to the background. there is an issue here. goldman sachs stock started today at $322 a share. that's equal to their tangible book value. they trade at one times tangible book value for a firm that has grown the book value by half over the last five years. there's some issues weighing on goldman sachs. one issue is the cultural issue. i think that's more for the press than the shareholders. that doesn't come up to me as

much as it does in the narratives, you know, in the mainstream here. then the other issue -- >> investors aren't concerned about it? >> you know, not as much as you would think. like when i talked to -- i talked to the largest institutional investors, doing this since my fourth decade, by the way, my 25th year on cnbc. >> oh, my gosh. >> congratulations. happy anniversary. >> thank you very much. but they're more concerned about what's the capital market cycle going to do and you heard david solomon say we think it's turning and one ipo leads to another ipo and the private equity market come back on board, that's what people care the most about. they want to know how goldman is going to improve their returns from 10%, that's not goldman-esque, closer to the target around 15% and yesterday on your interview on cnbc, you heard him say that asset and wealth management is going to be a big engine and then they want to know about goldman's efficiency and it was expense to

revenue ratio 68% last year, their target 60%, they're not there, and then they do ask questions about the culture and these articles, and he did address some of that yesterday and said yes, they've lost 200 partners over his five years. that's half of the partners. he's saying that's comparable to any other period and you need to make room at the top for new talent. i thought he pretty much traced the issues that were raised. now for me, i look at goldman observing the cold hard facts and there's a lot of soft actors at work and at some point it becomes a black box. i certainly pay attention to everything that's talked about. >> i was looking at some of the questions you raised in february. you said why was consumer allowed to lose so much money. to what degree does solomon have the confidence of partners? how is morale since they're no longer in the fortune best companies to work for list. do you think you got an answer to all those questions? >> only partly. trading at one times tangible

book you're pricing at a lot of concerns. as david solomon said on your interview yesterday, the consumer retreated. i never thought that was a good idea from day one. leading from a savings account that's not a sticky relationship, but it's better to cut your losses than go on forever. they waited too long losing $3 billion in the last few years was too much. i do think that led to less compensation for a lot of partners. i think that probably made them upset. >> negative fly wheel in that respect. >> absolutely. i can see if people are upset for being paid down because the consumer didn't pan out as expected who expected the consumer to pan out. better to cut your losses. you brought that up in the interview, but he's not off the hook for cutting his losses later than he should have. >> i do think it's interesting, though, there's so much scrutiny on it given it's a small percentage of business, and given what's happening at morgan stanley.

i mean they have a logan roy style three-way succession battle with the time ticking and nobody writes about culture stories there and calls that out. because it's goldman sachs? >> you know, morgan stanley, james gorman, ceo, he was not held in high esteem a decade ago, and a people said i don't want to own that stock. the ceo is an ex-consultant and this and that, and he was rough around the edges and said if you don't like it, don't work here basically. paid the employees in a lot of stock. it reminds you of david solomon right now. he's making the tough decisions, combined five asset management units into one, did pay people down last year. he is taking a 400 person partnership structure and putting a corporate-like temperature around the firm. goldman sachs has been public, it will be 25 years next year, but they've onlyp are started to act like a public company under david solomon for the last five years. >> you see that as a good thing?

>> i think as a necessary thing. they have a reasonable strategic plan. to get to a 15% return on equity, growing asset and wealth management and then don't forget two-thirds of the business is 154-year-old global banking and markets which is best in class, so when we talk about consumer, we're talking about less than 5%. you talk about two-thirds of the company best in class. trading at tangible book value for a company that has grown tangible book value and they haven't done a lot of deals like a playstation where you created over $20 billion of intangibles. goldman sachs greatest intangible asset is the employees, so you're right to ask about the culture and people leaving. we never know if the people leaving are who they want to keep or not. i don't have the full answer there. but in aggregate, i think they're on the right path. now they have to execute better. >> is it your favorite name? >> it's not my favorite name, but i will say, we're watching

the capital market cycle. if david solomon is right and capital markets is going to turn as much as he implied yesterday, that can change considerations and that would improve their efficiency ratio and allow them to pay employees more and then people would be like, david sloish solomon we love him. so sentiment can change winning cures all. >> just on the what we started with the layoff, it's normal as i understand it routine culling, not a new round of job cuts. is it happening across wall street? >> what's happening at goldman sachs is not right sizing. goldman sachs has already right sized. head count is down about 10% over the last few quarters. this is typical goldman sachs cultural culling of the lowest performers and that's part of the culture and they do that every year and that makes more room for new talent. >> gets a lot of attention these

days. thank you very much. good to talk to you about this. mike mayo from wells fargo. as we go to break, watch doccusign lose something early gains. stronger than expected quarterly results and did raise their guide for the full year. in the meantime dow close to session highs almost 100 points here. back in a couple minutes. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. (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!

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welcome back. let's get a check on crypto. bitcoin is trying to end the week in the green after falling more than 10% over the last month. the space seeing some muted activity despite the recent court victory around a bitcoin etf with crypto spot market trading values hitting more than four-year lows in the month of august. that's according to industry publi publication coin desk. >> doesn't like a strong dollar also. new data revealing something about apartment rents we haven't seen in decades. we have the numbers. plus, art cashin joins us with his take on september's rocky start and a look as we head to break here a look at the biggest laggards on the s&p for the week led by seagate and other earnings merovs like kenvue. we'll be right back.

welcome back to "squawk on the street." i'm contessa brewer with your news update. donald trump is facing new accusations of overstating his wealth. a new filing from the new york attorney general claims the former president inflated his net worth by as much as $3.5 billion a year between 2011 and 2021. and they say that's a conservative estimate. trump has not responded to that accusation. the legal pressure is mounting against the spanish soccer federation president. prosecutors accused luis ru beyal less of sexual assault and coercion after jenni hermoso filed charges against him for kigz her on the lips after the world cup final. she claims she did not consent to that kiss. rube yal less could face a fine or prison sentence of one to

four years if found guilty. and forecasters are closely watching hurricane lee in the atlantic. it is now a category 5 storm. the national hurricane center expects lee will maintain its strength this weekend and it's expected to deliver dangerous surf and rip currents along most of the u.s. east coast beginning sunday. of course forecasters are scrutinizing the models to see whether there could be more impact than that. back to you guys now. >> thank you for that. contessa brewer. about an hour into trading, muted range, although the dow is close to session highs, up 93. some energy working today some info tech as apple in particular tries to bounce back from 6% drop over two days. >> i wonder how much that's impacted the broader market too, the fear around china. remember it started with this report that chinese government officials would be banned from using apple iphones and would that spread and is there bigger

geopolitical and revenue risk for a company like apple. and then potentially other consumer companies in china. it was always just the semiconductors but now that it's spreading that's a potential risk overall to the market. >> great question to lead with art cashin this morning, director of floor operations at ubs, who joins us on the newsline. great to talk to you. i've been dying to check in with you on the china news and the notion thatting more morgan stanley thinks the market is hinting at china turns inward and puts operating profit at risk. >> well, i think what you're watching is a carefully structured launch by the chinese. i think that it's not an accident that all this stuff about potentially boycotting apple products comes out just at a time when the huawei phone comes out. i think they scheduled it for the release of the huawei phone to get the kind of headlines

they needed, and i'm not sure it's a full declaration of war, but i do think it's the means of the chinese officials to say we up the ante. now we'll have to watch and see what happens with the g-20 meeting that china is boycotting that. let's see if there's commentary around that. i think, as usual, sara is spot on, it could be a -- maybe not a world-class event, but an important event and i think it means china is upping the ante. full-scale war, not yet. we have a way to go. >> it doesn't sound like you think yields or certainly oil have given enough solace to the bulls to make a run here? >> well, the yields, mine, you know, you can take any news cycle and throw it out the window.

the market is following the yield on the 10-year. there's an important testing area between 4.25 and 4.35. when it starts to get up around 4.25, that starts to put some negative pressure on equities. if they were to get up to 4.30 that would put extra pressure on. heaven forbid we get to 4.35, you would see a short selling show up. for now, the fact that the yield has eased back from 4.25 to 4.20, is what has given us the bids that we have in the market today, and i think you could virtually ignore any news that's out there. i mean, the chinese news is important, everything else is to be watched, but as to what's moving the market, it's purely the yields. they've got these algorithms

trained and if you're playing the game at home, folks, just watch that range in yields down around 4.20, you have bids coming into the equity market and you get up around 4.25, those bids will disappear. will sellers show up? yes, if you get up above 4.25 toward 4.30. it's a pretty good thermometer to watch. >> on that note i feel like there's a split and mixed opinion about where the trend of yields goes? you can make the argument that yields should come down as the economy continues to cool off, as inflation continues to cool off, though you could make the case for higher long-term yields on the back of what's happening in washington and the fiscal irresponsibility and the debt numbers and debt issuance? where do you stand? >> i mean you raise an interesting point. there is still a lot of unspent

stimulus money built into these things, and everybody seems to forget we all go back and pick on arthur burns and, you know, the fed was tightening and then it kind of relentsds and then inflation got out of hand. actually a, what was happening then, if you are as old as i am or can go back and check on some history, you will see that there, again, you had fiscal spending going on and that's what kind of screwed up the fed. i think the fed has to be very careful here to see what happens with some of that money still in those stimulus programs. powell doesn't like to call attention to it and say anything about fiscal spending policy, but it is a factor and something we have got to watch. if it were to perk up again, then you'd see they would have

trouble. as to, sara, what raised it, i know you're on top of this, we've had a lot of corporate issuance over the last four days, and that was big enough, people started thinking it was going to go out of hand, you know, we still are having quantitative tightening. the fed is narrowing its balance sheet, and it dropped another $20 billion or so in yesterday's report, so what we've got to watch for here is, is there more issuance by the government or by the corporations? that appears to have abated. if it has it will give us some relief in bond yield. it's a critical thing for the yields is they made a high up at the 4.35, so the 4.25 to 4.35 yield on the 10-year is critical in everybody's mind and that's the yardstick they're using. i would love to tell you some

fabulous tales to make it all more exciting, but that's really how boring it is. they're watching the yields and almost tick by tick, they move with them. >> you're preaching to the choir on that one. we understand it pretty well here, art. we'll talk in the coming days about cpi and uaw and a butch of other topics. great weekend. >> you too. all right. bye >>. >> still to come, the man who negotiated more than $8 billion in nfl contracts, we'll check in with super agent drew rosen haas as the chiefs and lions kicked off the season last night with a big surprise and a quick programming note, cnbc's going courtside this saturday with leaders from across the sports landscape including nba all star kevin durant, espn chairman james petaro breaking down their game plans for success tomorrow at 3:00 p.m. eastern on cnbc. 'lbeig bk. ng to opportunity is just part of the hustle.

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welcome back. new real estate data showing apartment rent prices are on the verge of going negative. diana olick is watching that. hey, diana. >> hey, carl. apartment rents have been cooling off for several months now. they were still slightly higher year over year in august, but that may be the last of it. take a look. rent is up 0.28% according to real page. compare that to a year ago when rents were posting 11% annual growth. with the exception of a very brief drop during the covid lockdown rents haven't gone negative in a decade and when they did, it was due to recession hitting demand. that is not the case now. apartment occupancies nationally are at a healthy 94%, right along historical norms and that's thanks to high mortgage rates with high home prices keeping people in the rental market. the issue is a massive amount of supply. new units this year at a 50-year high with over 400,000 units coming on just this year alone.

we've talked about this a lot over a million new unit in the past three years. that's a record. and much of that supply is on the higher end. now renters have more options, so landlords have less pricing power as turnover increases. while rents nationally haven't gone negative yet they have in several local markets. austin, phoenix, vegas, atlanta, and jacksonville, florida, degree the biggest drops. looking ahead, supply should remain high through next year, but new construction has dropped off this year due to financing and other challenges so that may level things out. back to you guys. >> where are we on the buy versus rent? which makes more sense at this point given what's happening with rent? >> all real estate is local. it depends on the market you're in. if you're in the pricier markets it may pay. with rents coming back, the rent versus buy may lean towards rent. there are midwestern markets it's better to buy than rent. >> thank you.

diana olick. coming up next hour the ceo of kroger on their latest earnings and that $1.2 billion nationwide opioid settlement. also some news of a divestiture of stores ahead of their planned takeover of albertsons at 11:30 a.m. eastern. we'll be right back here on "squawk on the street." dow pushing higher up 74 points. , old school hard work meets bold new thinking. ♪♪ at 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. (fan #1) there ya go! that's what i'm talkin' about! new world ideas. (josh allen) is this your plan to watch the game today? (hero fan) uh, yea. i have to watch my neighbors' nfl sunday ticket. (josh allen) it's not your best plan. but you know what is? myplan from verizon. switch now

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comcast business, powering possibilities. the carriage dispute between charter and disney at a standstill. charter's ceo indicating little and disney is burning its linear programming house down due to itsdz effort to make dtc profitable. disney firing back that, quote, charter has abandoned consumers by denying them access. charter, quote, stated their indifference to needs of paying customers. it left millions without disney owned networks like fx and espn during the u.s. open and nfl kickoff. saying, quote, if you had an environment where we no longer carry disney content, which is becoming more and more of a

potential reality, you have to say what other additional sports content would you renew? at that point there's very little. so you'd have a smaller base of customers but you'd have a smaller package with a much better price. hinting those willing to pay for sports content will rely auto a patch work of multichannel distributors and dtc. it feels like charter is really trying to plan for this reality beyond a disney. meantime, we watch the war of words. >> street's trying to figure out if they just want to get out of the video distribution business, would be a sea change in media. as media companies compete for viewers, the season is now officially under way for football. kicking off last night with the chiefs and the lions. what a surprise. any given sunday. let's talk about the season ahead. drew, it's great to have you. i want to talk about the game and the season to come, but just on disney/charter, i imagine this carriage dispute is making

its way into conversations you have with your peers. >> absolutely. tv is the life blood of the nfl. we want fans to be able to watch espn and nfl games and espn is such a huge partner with the nfl, as is disney, obviously. so, certainly as an agent representing approximately 100 players in the nfl, i care about the well-being of the league and i hope that certainly disney and charter can work things out. >> i think it was azlov this week at one of the conferences out west said, this feels like a moment in terms of distribution in the modern era. does it feel that way to you? >> yeah, it does. you know, the nfl is such a popular sport. espn has hitched its wagon to the nfl with monday night football, obviously. i mean, they've got to figure it out. the fans are wanting to watch the nfl and other great programming on disney. let's get it done. you know, there's a lot of

bright people in both those companies. get it together. hey, i'm available, if you want to hire me to negotiate a deal. i'm ready. >> and you would, too. you're not joking. i know you. as for last night, just reflections on how sports can surprise anyone, as we said, on any given game. i see tony reportedly now has deleted his twitter account. do players like that need to feel bad after a rough night? >> it was a rough game for him. no game comes down to one player's misgivings. you know, tony's a young mrar. he's essentially a new player there. they just acquired him last year. what's amazing is if you had said to me this time last year that detroit would beat the kansas city chiefs, i would have said, you're nuts. detroit started 1-6 last year. they've been the doormat of the nfl. as we look at highlights of this

game, this is a stunning upset. the royal champs and the mvp go to the upstart lions who have been the punching bag of the league for the last, really, decade and more. what you've got to like about the lions is they have a head coach who's a blue collar, every man type of guy in dan campbell. they really don't have any superstars on that football team. but, you know, they sort of -- they work hard, they emulate their coach. and i think it was a great win for them and hopefully they'll continue to play well. as far as the chiefs, they'll bounce back. they're the cream of the crop in the nfl. >> i think we should talk about joe burrow, my cincinnati bengals. looks like he's going to be in cincinnati for a long time, agreeing to five-year, $275 million contract, which is a record, drew. he'll be the highest paid player in league history. does that make sense? >> and deservedly so.

yes, it does. deservedly so. joe burrow, joe cool is his nickname. he reminds me of tom brady at this stage of his career. he's an amazing talent. first pick of the draft. that was way back from a torn acl. much like the lions, i mean, he transformed the bengals from a doormat team to really on the cusp of the super bowl and in the super bowl two years ago. he's an amazing player. he's really won of the crew stars of the nfl. he's an awesome representative of the game on and off the field. he deserves that contract. and kudos to cincinnati. cincinnati is owned by the brown family, which is one of old school families that go all the way back to paul brown, one of the hall of famers. they stepped up and found a way to get it done in a small market. for years they said they couldn't compete financially. and now they've got the richest

contract and richest guarantee in nfl history. this is awesome for the nfl, for cincinnati and for joe burrow, obviously. >> love that. >> you made sara's day. >> good to hear. >> drew, finally, on sports betting, i mean, we spent a lot of time talking about sort of how that business has matured, going into a fresh season with a lot fresh dynamics, espn/penn and all that. how do you think that's going to manifest itself in the way of interest, ratings, money? >> well, i'm a little biased. i partnered with draftkings. you guys have to look for my spot with kevin hart. it aired last night in pregame and the game. i'm a big believer in it. i think the nfl is obviously embraced it. draftkings, fanduel, you mentioned penn and espn. the reality is gambling is here to stay with the nfl. it's incredibly popular.

it's mainstream. it's embraced now. it's being done the right way. i think it's only going to become more popular within the nfl, more dynamics, betting within the stadium, real-time betting. the nfl partnered up with so many of the components of sports gambling. i think it's great for everybody involved. it goes on no matter what. why not embrace it and make it something that the fans can really get the most out of. >> yeah. i'll tell you what, even though it's hard to say good-bye to summer, it's great time of year when we start checking in with you on fridays and mondays, drew. we'll talk soon. thanks. >> look forward to it. >> drew rosenhaus. "squawk on the street" will be right back.

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