performance. it always is people don't care about spinning disks. >> i asked a question -- >> we've got to go >> we found out you're a power lifter we did it. we've gopt ten seconds. >> seven seconds we're only on this earth for the medium term if you think about it "squawk on the street" is next ♪ good tuesday morning welcome to "squawk on the street." i'm carl quintanilla along with jim cramer and david faber the fed meeting begins, potus at the u.n. auto strike in day five. corporate events at intel, disney and others. roadmap begins with the fed watch. the street betting the central bank will stay put >> oil is trading at ten-month highs.

100 bucks perhaps in the cards instacart readying its wall street debut pricing at 30, that's the first of five listings this week it is amongst the first of the tech unicorns the last few years to go public that's almost two years, in fact, since we've seen one go public >> let's begin with the markets and the fed kicking off a two-day policy meeting yields got a little pop here, jim, on canada's cpi, reaccelerating for the second straight month. >> what a bummer the fed must find itself in we're not building enough homes. lennar said last week -- a lot of brokerage houses raised numbers. lennar today almost a de laid reaction we just don't have enough homes. we have this huge millennial bulge, and there's just no doubt about it they will not be deterred by these rates. that doesn't mean they won't be deterred by higher rates these rates, according to stuart miller who i think is the dean

of the group and executive chairman of lennar aren't detouring anybody. you have fewer homes you have the one thing that is up 40% since 2019, not in the cpi because only vent in the cpi. hents could come down. there's been overbuilding of apartments david, if you're jay powell, i think you're ready to talk tough. >> he'll keep talking tough. saying 2% is the focus, 2% is where we're going. >> a bad month >> i do wonder, we don't talk as often about qt, but it continues at a fairly significant rate 9 trillion, could go as low as 6? i wonder about the impact over time some say it's worth 25 to 30 basis points in tightening. >> good point, and he knows that >> and on asset prices as well it's sort of -- 9 to 8 doesn't

have the same impact as once we get from 7 to 6 will, for obvious reasons. >> it used to be you would look at the worldwide fund rates and say, wow, the money must be coming here at 4.6 on the 20-year. the money seems more immobile than i thought it stays where it is in the meantime, oil goes higher if your get what stuart miller said which is that the consensus among people in the country is that housing prices are going up, so you have to buy now that's precisely the opposite of powell wants powell doesn't want expectations of inflation, but we do have expectations we have it at the supermarket, too. the prices at the supermarket are extraordinary. we'll be talking about ins instacart. i don't want to be too anecdotal. if you go and buy rice, a staple of this country, it's double. >> yeah. friday we got inflation expectations that were cooler

than we thought. upgraded dash yesterday on moderating food inflation at least. >> i wish i could find it. i just find maybe it is moderating for the other guy the soup mupermarket we go to, can't believe how much everything is up i have a list of things -- i asked my wife, i said, again, i hate anecdotal as we all do. annie's mac and cheese at $5.49. it was up a back and a half. scallions $2.99 a bunch, they were $1.99 almonds -- don't laugh >> your shopping list? >> that was not the takeaway that was not the takeaway, that was my shopping list carl, i've got to tell you, these are going higher, not lower. >> we'll talk about more concerns about the consumer today, big note out of ubs and

others first, news out of disney which is holding its investor day today. let's get to julia boorstin. >> big news from disney. doubling down on its parks division the company filing an 8k announcing it is developing plans to accelerate its investment in its parks experiences and products segment to nearly double compared to the previous ten years so increasing it to approximately $60 billion in aggregate. this ten-year, $60 billion plan includes, quote, investing in and expanding and enhancing domestic and international parks and cruise line capacity, prioritizing projects anticipated to generate strong returns consistent with the company's continuing approach to allocate capital in a disciplined and balanced manner. the company going on to say they believe the company's financial condition is strong and access to capital markets will provide adequate resources to expand this business. we see disney shares are down by 1.5% premarket right now bob iger and parks

chief josh demar row are giving an investor presentation on the matter we will be back with more details on what this means for disney back over to you >> bob iger thought this was send things up, in part, because they're so lucrative the numbers, david, from shanghai, gigantic, up from previous years the parks here are doing incredibly well. this is in many ways to say where is netflix's parks i'm not buying the stock is down iger is talking about a balance sheet vastly improved from maybe two years ago. vastly. >> and having access to the capital markets in order to invest in these parks, as julia reported everybody loves parks. parks have been very good to our parent company as well i said this many times it was an afterthought when comcast bought nbc universal,

the parks, and quickly became really over a number of years a very central part of the profits of the company. >> are they supposed to double down on monday night football? double down on the comedies of abc. >> the cash flow engine of the company, everybody knows that. right now it's the only cash flow engine. >> they're doubling down on what's winning, as opposed to doubling down on what's losing they should throw good money after bad. i'm asking you. >> i'm nopt disagreeing. you seem to be disagreeing with the market, but also with me >> by the way, david, wild rice blend was 8 bucks. i'm smarting from his total dismiss of lisa. >> how about park ticket prices? >> i'm just saying that, if you try to figure out where bob iger should put his money, i was afraid he'd put it in movies i don't want movies. those are very costly, but the

return is suspect. >> they are still going to make movies parks are clearly central to the future strategy of the company. >> why not have the stock up a dollar the balance sheet doesn't require equity i thought it might. >> by the way, the hulu assessment period is going to begin in a matter of days. >> that's the worry. >> while the floor is -- let's call it 9 billion, the ceiling could be far above that if you listen to the comcast side. >> who do you work for, by the way? >> yes, we know who i work for i only own stock in one company. we're not allowed to own stock in any companies i do have some comcast what's your point? >> my point is we don't know about that >> we don't. >> we do know theme parks -- if you told me on monday -- >> my point is that it could be a larger cash call to disney than anticipated. >> they do have the money. my point is if you told me o monday that bob iger was going

to invest in parks as opposed to movies, as opposed to linear tv, i would say there's a guy who has horse sense. he does exactly what i wanted and more not doing the new mexico theme park that's not happening from what i can tell. >> tom rogers on squawk made the point there's a choke point on deals, hulu, charter, espn, abc, and operations from a stock narrative standpoint are taking a back seat. >> well, that's true i would just san jose the one thing that is the true gem, that is the great use of their intellectual property is the parks. i think this is -- i didn't expect -- this is even better than i thought. >> a big number, 60 billion. that said, investors are still going to wait for the company to provide a blueprint perhaps more specific than what is going to be presented today during investor dare. really encompassing what's the true plan. from our interview a couple months back where mr. iger

clearly made it -- said there's nothing sacred here, but didn't provide specifics because there were none to provide at some point they're going to have to do that. what is the future of espn what is -- what's going to happen with abc? most importantly, what's the plan at direct to consumer in terms of -- again, they've given ups these parameters, but even more in terms of when we get into free cash flow positive. >> i'll give you a plan. >> you've got a plan >> yeah. you buy the vision pro, you contract with espn and you have an iso -- tv term for isolation. >> thank you. >> iso on all your skill players in fantasy, except for -- i hope nick chubb, may he come back. >> don't get sidetracked continue you watch vision pro, watch the games and have isolation on all your skill players and you have the time of your life.

you can play against other people i've got to tell you, i cannot wait to watch what i regard as being very good tv, the youtube, but i want espn to give me an isolation on all the players i care about maybe that's a separate contract with the nfl they'll give a contract to anybody. i think you walk near the building they'll give you a contract i think this is the holy grail because so many people bet, so many known as prop bets, parlays which are very exciting, and fourth quarter, kirk cousins throws two touchdowns. i want to see that. >> you think sports is definitely the killer app for the vision pro which you've been very positive on despite its $3,500 price tag. >> i think t-mobile is going to give me a discount. >> we keep talking about that. you keep saying it and i keep saying that's not going to happen. >> david, have you been to the

store? >> which store the t-mobile store >> grocery store >> how would you like to tack on a little more by getting it from instacart? why don't i pay more -- i can't wait to pay more at the stupor market. >> why don't you go to the supermarket -- it's an enlightening experience. >> every so often i do. >> instacart will be that you get to pay more and don't get to pick out the produce can you beat that? you go to costco, which is cheap, and you make costco expensive. that is my kind of ipo so glad it's going to be priced right and going to pop i can't wait to pay even more than i'm paying right now. vision pro iso >> you don't want to pay $4.00 for rice, but you'll pay 3 grand for consumer electronics -- >> i'm going to buy it from t-mobile. >> oh, my god, with the t-mobile let's get seaver on the phone

right now. >> we'll do it on commercial. we'll take a break and talk instacart following arm into the ipo waters, talk about what to expect from the grocery delivery's firm. cruise lines, deere, del, of course, the strike when we return ...in real time. (jen) so we partner with verizon to take our operations to the next level. (marquis) with a custom private 5g network. (ella) with verizon business, we get more control of production, (marquis)ncies, and greater so our customers get what they want, when they want it. (jen) it's not just a network. it's enterprise intelligence. (vo) learn more. it's your vision, it's your verizon. 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? we can help with that.

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ticker cart, the grocery delivery service pricing the ipo

at 30 a share. that's the high end of the range. values the company at about 10 billion, well below the 39 billion. don't miss deirdre bosa's exclusive with the ceo later today on cnbc. jim, how are you viewing this offer? >> we're at the point of the underwriting cycle where it is vital that every deal work and work well. now, what's work i think work is what happened with the arm deal, although now we see people taking profits in arm because arm is more expensive than -- >> nvidia has been down lately, too. >> it's been a dog not my dog, but a dog. i just think that what happens is i don't really care i know it's priced exactly where people are going to be excited i look at the company, and it seems like a yes to your company from that era where, whatever --

i remember when i started in the street, they threw out companies that did deliver for food. >> like cosmo, urban fetch. >> urban fetch and cosmo, yeah i remember using them and saying, wow, you know what i could call someone at red apple and have them deliver it and get a good price i just think this is -- i'm going to say it. they have a huge number of people that work for them, and this is -- if amazon does it right, the most sue purr of laos company -- >> once worth almost 40 billion. >> my electric typewriter was once worth $100. >> 6 million plus is the offering they have cornerstone investors stepping up. you're talking about 200 million being actually issued from the company into the public flow, so

to speak it's nothing. >> it works. >> it will work. >> we although it's going to work >> what has been said to me is the real ipo will be 180 days. don't forget you have so many of what were the large investors, whether it's the d 1s or tigers of the world who own so much of this what are they going to do in 180 days is really the question. that's when you'll get true price discovery. it's hard to get off on offering of this size. >> it's very hard. if you get true prices governing, that's going to end what is the beginning of what could be a fabulous boom don't give away the boom. >> you've got 180 days. >> i have goldman, the board of directors here it's vital for solomon that this deal work. >> you're looking at goldman sachs' board of directors. >> do you save mike mayo's view

that solomon is safe for now >> oh, solomon is safe >> anyway, you want to take the 9ers against the giants. you want to take solomon against the naysayers. >> everything comes back to football. >> we're in football season. there's literally nothing that goes around in there that doesn't hit football. >> i'm going to do cricket i'm ready. >> can you say ten -- five sentences that don't connect to football >> it is kind of all-consuming. >> monday football was the biggest in history last week i'm now going to make all my references to yellowstone. >> the show, not the national park >> yes, yes. wow, there was a lot -- i'm watching it again for the 17th

time they brought it back, as opposed to "the wire." >> giving people a chance to start fresh from the beginning >> i think this is -- name meth. i think -- >> goldman is leading instacart the same way it helped lead arm. >> i'll make referses. this is the braves, great team goldman is the braves, and the o's are morgan stanley i can do anything you want i can pivot. >> our apologies if that was a bit confusing. i think i got it i'm not sure. >> everybody is ryan reynolds. >> we'll take a quick break, get cramer's "mad dash," countdown to the opening bell. still can't get back to flat line we're back in a moment undreds oa points like hrv and rem sleep,

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seven minutes before we get started with trading here at the new york stock exchange. that's where we do this show from let's get to a "mad dash" this morning. you want to talk a little starbucks. >> you ever get a piece of research that hits your desk, your travel trust has a position in it and you say i completely disagree with this there's a starbucks downgrade. this is such an easy downgrade for starbucks. you basically say the china risk is too great it doesn't matter what's happening in america doesn't happen that there's a great ceo. what matters is there's a chinese albatross, the albatross of china is weighing on this stock. >> why do you not feel that's a valid concern? >> because the albatross in

china weighed on the stock from here now you come in and say, wow, what a millstone hey, terrific. no, not here we were great friends with the chinese here but here it's getting bad. no this is when you make a contrary call and you say, you know what? everybody considers it a millstone -- i would switch from albatross to millstone. >> jim, when you're starbucks trying to make a decision as to how many stores you're going to open in 2024 in china. >> they're opening one every nine hours. >> do you still open a thousand stores >> what do they have -- >> given the state of the economy and the consumer. >> what's the biggest problem in china right now? >> housing, the property sector. >> no. employment. >> youth employment. >> who works, as my daughter happened to be a barista at one point. who works as baristas? >> younger people. >> there game, set, match this is one of the few companies that are still employing people.

>> you don't open the store -- people aren't going to come there. you don't open the store so you can employ people. >> you build it and they will come >> what i'm q egg is whether or not they figure out what to do next year, that's not the easiest thing to answer. it's been the key part of their growth in stores, has been in china. the economy there is certainly a question mark. >> i think all the people that sold apple at 175, are now starting to think maybe it was a mistake. i think this was an amazing call right here, of which no one made here i'm regarding -- the guy himself will take it down here they'll take it right to here. people who sell it there to make me look bad. don't you think i don't know paranoid sometimes but correct anyway, call me a buyer. >> all right meanwhile, howard schultz is gone entirely off the board. >> i think he's driven lux man is going to deliver --

>> not you that's what he did to schultz finally. took a while. >> i don't know that >> a little insight. >> maybe i do. opening bell is a few minutes away catch a lot more of this excitement how can you not? by the way, if you haven't had enough of us already, you can catch us any time, anywhere by following the "squawk on the street" opening bell podcast

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instacart getting ready to ring the bell in celebration of its ipo. we talked about how cramer views it and also the momentum in capital markets. >> the companies and the offerings are two different things they can make this deal work they will. i think it will be terrific. the rivalry between the new york stock exchange, as we saw in the ft and the nasdaq, david, was very big, very big. >> the fight for listings closest in five years or so.

seen some people hopping lately as well. >> well, look, i just think it's great for the capital markets. for a year and a half, i started thinking -- [ bell ringing ]. >> it's important. >> yes it is >> there's the opening bell as we keep our eye on what that means for markets as well as some of the downside scenarios, jim, spun out today by the likes of ubs evidence lab, i know you're a huge fan. >> i love the evidence lab >> they take a crack at spending intentions going into the holiday. the percentage of people who say they're going to spend less versus more is the second widest spread in about a decade. >> i think the have-have not -- there's amazon, costco, walmart. you tried it during the pandemic inflation cemented their use

because they kept their prices down now it's no longer a thesis, it's a reality the only ones that are still able to squeeze in would be the tjxs and the burlington. the decline in the brick and mortar stocks, if you believe them, you would think these companies all better merge or else we have a series of 52-week lows. >> macy's, peloton, pet co-dollar stores target three-year low. >> i went in to target to say is there anything going on. no david, either there's a buyers strike on the old time brick and mortar or people are saying, these are all value traps and you have to buy walmart and costco. >> what do we make of target it's worth spending a little time on that that's just been disastrous this year >> it is >> we talk a lot about shrinkage

which in this case is largely comprised of theft hiring seasonally again, 100,000 workers as they did last year. they're saying they're bringing prices down on any number of things again, we're already talking about the holiday season which is still a few months away nonetheless, they had a release about it jim, you've looked favorably on the management team there. >> i wanted to call it a buy yesterday. i was trying to come up with a thesis, stopping the gravitational pull 5.2% is not going to save it i think brian cornell is doing a very good job. it's not perceived as offering the bargains you get at walmart. now -- walmart is rock bottom. >> they're saying the same thing. everyday low prices, targets delivering new deals every day. >> david, i read that -- i started the thesis saying -- this is my last night's show --

that targets the outlier, it should work. i said this one doesn't make sense to me because it's a fun place to shop. they've got all these great private brands it's got a terrific race track there's a lot of good pricing. shift is good. but the market has just left this one behind. how do you buck it >> i guess you put up a quarter that's unexpectedly strong there's always that. >> david's got a point. >> hiring 100,000 seasonals, pretty much in line with the plan the last couple years as opposed to macy's. talking 38k. two years ago was double that. >> macy's has ten fewer stores in the last year walmart, by the way, basically creating a police station within the store. >> because, again, of shoplifting? >> yeah. obviously it's being underreported by everybody. >> it's a big issue. >> except at costco because

you're stealing from yourself, club member. why would you steal from your snefl. >> because if you're not a club member and you can't come in and steal. >> i can't get >> i've been in costco and i'm not a club member. they don't card you at the door. >> they do ask for your card as you walk in. >> they haven't asked me. >> i wouldn't say enforcement is strict. >> by the way, if you're going in there to steal a lot of stuff, really? >> you can come with me to the elk's club, i can get you in without a card. >> toast masters. >> i'll put that on my list of things i can't wait to do. >> speaking of retail, amazon, jim, interesting piece in reuters looking at suppressed mood at the hardware division where they're worried about dave limp leaving later this year,

worried about cutbacks, the pipeline, devices. >> i have to tell you, everything i see at amazon is purposeful it wouldn't surprise me if they did something with alexa to cut back the 7 to 8 billion in losses i think jassy las more control over the situation than anybody realizes if somebody is going, don't let the door hit you on the way out. i think he's doing remarkable. i know that he was under fire from a lot of people, including me i think he's answered the call they've rationalized david, this instacart, when you order -- you are a member of prime? >> i am a prime member, yes. >> i ordered something from prime and they must have a hub right near me. i order sense dine stooth paste, i can wait for someone to come over -- i mean walgreens. >> you got to get somebody -- >> maybe bring a locksmith. >> aisle four, please, with the

keys >> they're thrilled to see you, too. >> oh, it's the wrong key. >> you want toothpaste you ever noticed rite aid have a lock on -- you can own whilenol. >> getting off track here. i don't even remember what you were talking about. >> if you order -- i haven't even talked about the nfl. >> we were talking about amazon. >> i'm saying, you can say, wow, i don't have any sense dine. i'll be sure to pick some up at walgreens or you go in, and when you get home, because you're not buying the sense dine for work, there it is. >> you're not into cvs upgrade today? >> maybe on the health care side andy jassy has correctly figured out -- there's just a series of items that people order on

impulse that they usually go to walgreens for. they'll give it to you you come home, and there it is. >> i see you see the teams of guys and ladies on the street unloading the amazon truck, putting everything on to deliver in the neighborhoods they do let -- they have everything wrapped and then they just let it roll down the street put it in a garbage pale, please that's one of my big issues, sanitation. >> it's wrong. >> i'm glad that's really central to your thinking i think you should think about instacart, this idea you can -- instacart versus jassy i'll take jassy and spot instacart three. we can do a parlay, instacart, walgreens, cvs, target, jassy. >> you'll take amazon. >> of course, the big part of the amazon story is their efforts in ai.

you talked to saffir katz from oracle about how it fits into their thee ses right now take a listen. >> what we need to do is both use all that data and help hospital systems and countries move all of that data to use ai and actually help save lives. >> i think herky note is this afternoon on elson tonight. >> i got more outpouring from people in silicon valley people saying thank heaven you put her on t. cerner deal is going to pick up a number of contracts. the number of contracts she's picked up just this quarter for oracle is amazing. and yet people still remember, david, there were a couple of down grades based on the fact that people aren't ai enough

larry ellison is ai every day. i don't know if you ever had a chance to go up against larry. >> no. i have not thankfully gone up against him in any way. >> i have two letters for you, if you do, i and r >> ir. i'd go on the injured reserve list. >> infrared. >> i was going to give him pop, but then he'd talk about petco you can't go against larry ellison. he's the most competitive person in america although elon musk is competitive, too. >> how many islands in hawaii does he have >> he's not interested in expressing his wealth by buying all kind of stuff. >> how many world cups does he have, america's cup? >> he's interested in doing and doing and doing. larry likes to buy a lot of stuff. >> he's working every day. >> larry ellison, he's bigger

than ever. >> you're describing sort of the polarity of the wealth in this country. certainly a big part of the discussion surrounding the strike now in day five. >> so glad you brought it up. >> a couple of interesting notes, barclays says -- d.a. davidson said don't count on used car inflation used car prices fell during that strike in 2019 there's enough pickup inventory, if they go forward with additional strikes at the money center factories, they've got 80 days inventory. >> i think there was a sense that shawn fain had them on their heels, the head of the uaw. i think the next thing you'll see is the auto companies playing a little more hardball i don't think jim farley, who recognizes the existential situation for him if he gives in, jim farley is a competitor his family is on the assembly line so it's not like he comes to

this with a silver spoon lockout and mexico are two terms to become familiar with. lockout, good luck i think fain is overplaying his hand. >> uax in response to the uaw strike, u.s. steel actually increases its guidance, 150 million of adjusted ebitda this was out yesterday, well above consensus, about 486 million. they're also talking about improved guidance being driven by cost. the company outlining more resilient commercial portfolio, higher cost benefits resulting as well in beating what were estimates. they're talking about a buck ten to a buck 15 a share >> is that to stop

cleveland-cliffs >> no. i think everything i hear at this point, jim, indicates there's a fairly robust auction going on for u.s. steel. it's cleveland-cliffs, we know that, os lore met ton. they're in there wrout a doubt, is my understanding. i've heard of a third bidder i can't identify. >> i can't believe it's nucore. >> i even heard maybe a fourth bidder that said, we should get more clarity, i don't know exactly when. >> a korean company? >> i do know first-round bids are due this week. >> who is the banker >> who is who's banker >> u.s. steel. >> barclays and goldman. >> that's the new tan tell we saw that for arm. >> i'm not going to tell you all the other bankers. what i am telling you is they raised guidance, appears to be a good deal of interest in this

company. there's a belief that cleveland-cliffs must own in some way arcelor is in there, maybe a few first-round bids we'll update you as we get more clarity here. >> they would own the auto market. >> cleveland-cliffs would own the auto market. >> does cleveland-cliffs have -- i'm not sure u.s. steel was happy, that move that cleveland-cliffs made with the unions when you say they would own the auto market, does that present a significant antitrust problem for cleveland-cliffs >> because they both have the name steel connected to them of course there's antitrust. there should be antitrust in this case. you mentioned ford, gm and stellantis they do that just to make our lives difficult, stellantis. >> the old chrysler. >> you see how much toyota was up last night?

>> speaking of strikes, the writers, carl, are back to the negotiating table, i believe there is some hope that maybe they make some real progress here >> warners brothers? >> i think despite iger's comments initially, he's got to be a key part of this, too, in terms of -- nobody is a better communicator than him. nobody is better at sort of keeping a nice even keel and getting people to -- >> to buy the stock at 83. >> disney's stock is down, jim >> the last time i looked it's 944. by the way, toyota motor, they talk about who is the winner it was at 162 in the third week of august. now it's at 195. can i pronounce them the winner from the strike? >> actually a good note about some of the japanese oems and

they're going to benefit along with some others the question will become political in a hurry as trump goes to speak to michigan union workers next week. pressure on the president to maybe picket with the workers. >> there are a lot of people who feel the president could do some sort of emergency unemployment insurance to help the strike fund. >> the automakers are in the midst of this seminal transition that is costing an enormous amount of money. the administration is very much behind that transition then what, you'll increase labor costs so much that you're not going to be successful in making that transition? >> exactly what jim farley, the ceo of ford will tell you. >> they got hole load out as we moved everything out of the country. >> i think concessions during the bankruptcy. >> i think 20% improvement in 401 kfrments and a cola clause i

think is pretty good are they supposed to give 80%? >> there's got to be common ground somewhere, right? >> yes, there is common ground all i can tell you is, my trust owns ford and common ground means -- >> so 25%? >> i think that's in the pocket. fain is not talking like a guy who wants a deal. >> would you expect that at this stage or five days in? >> no, i think the rhetoric will be hard. it's gone going on for a long time david, i think you've been down on my nfl references do you remember the offer that michael corleone offered the senator? >> no, i'll make you an offer you can't refuse. >> here's my offer, nothing, and you have to pay the casino

license. >> is that tom hagan's line? >> no. the senator said i don't like you people i think that's the offer that fain is offering, by the way fain had a very slim majority to win. ford is running all these ads saying the union loves us. well, it seems a little unrequited you go after the f-150, i say lockdown -- lockout. >> why do you keep pushing this lockout thing? >> sound like tim scott comparing it to the air traffic control/reagan days. >> i think it's existential. >> lee jay cobb. is that who you are? >> no. i'm the guy that turns the tv off. the top guy. never found out who he is. i think the disparity right now, you could not own ford stock you'd have to sell it. >> that's the reason why the forward multiples are in the low

single digits. >> absolutely. have you seen the retail macy's is at three times earnings, and they're profitable >> hey, target is up >> is it >> you talked it up. >> my father worked at gimble's, wiped out by macy's. i'm glad to see target up. >> the season has turned we'll take a break down is down 43. there is strength in travel names. carnival up. you can get in on the cnbc investing club with jim, sign up at cnbc.com/jointheclub or use the qr code on your screen that takes you right there. as we go to break, we'll watch bonds as well as the fed meeting begins, decision out tomorrow. two-year almost to 5.08. we'll be right back.

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. got some weakness in machinery. watch deere the third worst performer on the s&p ever corps cuts the target by $25. north american construction is doing okay but farm equipment sdmels europe and brazil starting to show softness. the shares down 2% disney and auto zone the only two names performing worse right now on the s&p with thdoe w down 60 stop trading with jim is coming up next. with comcast business... it is. is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic across all of our locations? yeah! absolutely. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening.

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it's time for jim and stop trading. >> every now and then you get a ceo who is just fabulous and everybody likes him and helped start the company, started behind the desk and worked his way up and comes on cnbc, and he tells the truth about signups and how they're doing and that was the case with the ceo of planet fitness. he was fired or stepped aside. gm downgrades it to hold today i had him on a number of times he was one of my absolute favorites. also because, you know, we see all these ceos who make fortunes this guy deserved whatever his way was. the franchisees may not have

liked him but i would like to know more. i want know why they didn't like him. because boy, he was terrific now maybe it was all a giant facade and everybody in the meeting got it wrong and every time he came on "mad money" he was -- as far as i'm concerned the stock was worth keeping and the board should go, and he stays. >> jpmorgan goes from 70 to 52 yesterday jefferies went 90 to 56. >> he was the company. he started behind the counter. sometimes he would tell you, things didn't go right supposed to say it's always great? >> about franchisee relationships and everything else. >> it's about selling franchises, not selling great clubs. at times the customer does matter i like the guy what can i say tell me someone in the media who

didn't maybe we've all been coned by this man who started at the desk and did a fantastic job i'm going to call a top on oil i've had it. >> what was our tick this morning, 93.45. >> enough. david has me so steamed today. i would have to rethink the rest of my day. >> express your anger in football terms. >> yes yes. >> you're shooting against me. >> i'm not shooting against you in disney. i can't help that stock is down. >> you lost in fantasy last night. >> i don't play fantasy. i'm a new york jets fan. i always lose, no matter what. >> would it kill you to hit wilson. >> no. >> we'll see you tonight and look forward to the discussion on oil and everything else disney is dragging on the dow. when we come back deirdre's exclusive with the ceo of instacart as we await its opening trade.

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i'm sara eisen with carl quintanilla and david faber live for you as always from post nine of the new york stock exchange president biden set to take the podium for his annual address to the u.n. general assembly here in new york in just a moment and we'll bring you any headlines from the president as they cross. first let's check in on the markets right now. s&p lower by 0.3%. energy, health care and financials are higher right now, but it's the tech stocks, consumer discretionary, industrials, staples, communication services all weighing you are seeing the yields marching higher on day one 30 minutes into the trading session. three movers we're watching. cruise liners, carnival and royal caribbean after truist upgrades both names citing positive demand trends disney shares lower, planning to double investment in parks and cruises businesses to roughly $60 billion. rocket lab shares plunging after reporting its first

satellite launch failure in over two years. down more than 25% this month, losing 10% right now we have to be watching treasuries into the fed meeting and plays into the action today. i mentioned the highs we're seeing there we're near the highest level since 2007 on the 10-year. the 2-year note yield. expectation for the fed meeting they're not going to raise interest rates or change policy, but there is some suspense in what, first of all, chair powell says about things like rising gas prices and stickier inflation data we've seen lately and then the big drama is going to xhts dots they release their forecast for where they think interest rates are going for the rest of the year into next year and that's their ability to signal how hawkish they're feeling about the outlook because, especially in next year's trajectory, if they take out say 25 basis points of cuts from where they

were last time which is expected, that's a little tighter than the market expects. >> what's the market expect right now? >> the market expects them to start cutting in the first half of next year. >> we snicker because it seems unlikely. >> market expecting 75 basis points of cuts next year it seems unlikely now with the data coming in hot, but if we turn toward more recessionary type data and inflation continues its downward trajectory the feeling is they can go from super restrictive to a little less restrictive. that's not necessarily what's happening, and there are mixed signals. we got the housing data today. the housing starts data plunging building permits were up on the plus side, but i think the starts down more than 11% shows you the bite of look at that, august, at the end what's happening with interest rates. they continue to march higher and that puts pressure on mortgage rates i was talking to janet yellen who remains optimistic, sticking

with the soft landing story. what about the lags? you're just starting to feel the lag impact of the fed policy and pointed to housing and here's ha she said. >> well, there are lags in the impact of monetary policy on the economy, and we would expect to see some impacts i think we've certainly seen it in the housing market, but look, we still have a good, healthy labor market consumer spending remains quite robust we've seen strong industrial production i don't see any signs that the economy is at risk of a downturn, and this is the best of all worlds to see continued strength in the economy, a good, strong labor market, and inflation moving down. that is what we're seeing. >> i don't see any signs of a downturn in the economy. i know she's a politician now, but she is also one of the foremost economists in this country as well, and when she thinks about lags, she was

talking about housing data like we're seeing today she doesn't necessarily see it wrecking the economy and that's thanks in part to the strong labor market. >> i asked jim this question earlier, but i would like to ask you. quantitative tightening, the impact of it on asset prices on overall, speaking of lags. do we give it enough credit? are we figuring it in? is the market including the tightening so to speak that that's implying? >> so far it's been not as disruptive as some were worried about and some had expected. they're trimming the balance sheet. it's kind of going steady and going the fed's way, which is it kind of always wanted it on autopilot not to use it as a primary tool for tightening policy so far that has been the case because we have seen this decrease in liquidity and this very much feeds into it, but it really has been all about the interest rate outlook. the bigger question, so far so good on that front, when the fed

stops raising interest rates if the economy turns weaker does the quantitative tightening start to aggravate the market a little bit it hasn't been a huge problem for the markets. the other question on the fiscal front, right, and what -- what is the market telling us about -- is it starting to get worried about the deficit and issuance that treasury has to raise debt to fund the chips act and infrastructure act and the inflation reduction act and all of that starts to ramp it's another thing we talked about yesterday. >> got to $33 trillion for the first time in the national debt. i believe we hit that recently. >> the treasury secretary, though, played it down as well listen to what she said. >> we have to make sure that we do keep deficits under control going out. the statistic or metric that i look at most often to judge the fiscal course is net interest is

a share of gdp even with the rise we've seen in interest rates, that remains at a very reasonable level of around 1%. but we do need to be careful about what we do going forward in order to make sure we stay on a sustainable course >> and guys, she went on to say she doesn't see a problem, a concern in the bond market with all the debt that needs to be issued, which i think is interesting because, you know, i was talking to ken griffin last week and that's something he thinks is starting to impact the market. >> a couple very important interviews net interest is a percentage of gdp may be small, but net interest as a percent of government spend or the budget is going to get larger and larger given the issuance that's taking place right now against the backdrop of far higher rates. why isn't that a concern >> that's a big reason that deficit is now going to be 6% of gdp instead of 3% where it was expected to be of gdp. it has to be a concern

i think the question is whether the bond market is throwing a tantrum. it's not easy to tell because it's coming against the backdrop of inflation that is persistently high and a federal reserve that is raising interest rates. there's one chart, though, that i really wanted to show you as it related to all of this, which is chinese demand for u.s. treasuries and i think people aren't talking about this enough it's come down and we just got this new data last night that showed for the fourth month in a row china is unloading treasuries is it geopolitical i don't know you have to wonder about it. >> [ inaudible ]. >> there you go. leave you with that. >> thanks for the pick me up to start the hour at least we got an ipo going instacart getting ready to go public after pricing at 30, the high end of expectations let's get to leslie picker with the latest >> hey i'm here at the nasdaq ipo execution center i'm told the first indications are expected to come in a little under 5 minutes, maybe 15

minutes from now investors are entering their orders, but it's too early to tell if they're coming in higher or lower than the ipo price of $30 per share instacart pricing its ipo high end of the boosted range giving the company a valuation of $9.9 billion on a fully diluted basis. it's a long road for the grocery service which filed 16 months ago, but when the market took a turn amid higher interest rates you were talking about, sell-off in tech stocks in 2022 instacart put its deal on ice. according to the deal last night instacart will go public with a quarter. it's still raising more than $423 million in this offering while selling shareholders will get $237 million on a relative value standpoint instacart is going public at less than four times sales, about average for most ipo cycles excluding the most recent

in 2020, and 2021, when the median multiple was ten times according to goldman sachs while profitable instacart faces competition from large grocery chains developing their digital and fulfillment platforms and externally from the likes of amazon and uber and doordash, to name a few we'll see how the market sizes up these risk factors against the prospect of a profitable, yes, this is profitable, it is a growing company, and it's coming at a discounted valuation but instacart isn't supposed to start trading until about an hour and a half, two hours from now. guys >> there are any number of investors in the so-called private markets, hedge funds, whatever, tiger or d-1, tell us how they're viewing this they own a lot i don't think they're sellers here yet, but they could be in 180 days. >> the sellers here are largely made up of the co-founders selling into this deal and some other executives and employees and so forth

interestingly enough, some of the participants, d-1 is one of them, that bought in at the $39 billion private round from a few years ago, they're buyers in the ipo. they're part of the cornerstone group buying in about $400 million in total at the ipo price. they're essentially doubling down, which is kind of an interesting dynamic and i think it's an important signal for the market as they're looking at doing what, you know, is doing a down round at a lower valuation than that 2021 valuation. >> leslie, important day we'll watch it with your help. leslie picker. quick programming note this morning, don't miss an exclusive with instacart ceo coming up later today on cnbc. as we head to break here's what else is on our road map the federal reserve meeting on rates. what our fed survey is saying about the risk to stocks from here. the energy sector is outperforming up double digits this quarter

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if you haven't heard the fed is kicking off its two-day meeting on rates how are investors feeling about stocks steve liesman is here has the results of our latest fed

survey steve? >> good morning, david respondents to the cnbc fed survey seeing considerable uncertainty when it comes to the economy and fed policy that translates into risk for the stock market with the s&p level 4450, seeing about a 2% decline for the remainder of the year, ticking back up next year before you get healthier gains into december 2025, which is curiously when the outlook for the fed seems to clarify. for the risk-reward ratio, what's the chance of a 10% decline or increase in the next six months and it's negative 17 against be an average of minus 11 somewhat higher than average risk out there for decline by our 30 respondents the level of systemic risks again, ticking up and maybe that's a result of corporate bankruptcies and consumer delinquencies throughout it's up 65% from 49% in july the peak, of course, coming in

march with the silicon valley bank to engineer a soft landing the fed will need to eliminate job openings without jobs. pulling that off will be like sully sullenberger landing a plane on the hudson river. the philadelphia trust company writes the outlook for stocks continues to be positive as earnings are strong and selective market sectors provide valuation opportunities. the policy outlook for the fed, beyond hold at least through june of next year with some debate about whether to hike in november 60-40 on no hike a 40% chance of a soft landing that's the uncertainty that makes forecasters right now, guys, cautious on stocks carl >> steve, appreciate that very much steve liesman. our next guest says a rolling recession thesis holds, but hope for rolling recoveries is uncertain given the spike in

oil. liz ann sonders is with us. >> hi, carl. >> i wonder if you are starting to think more about what some argue are dwindling chances of a soft landing, growth concerns, i see bofa says if enough things go wrong in q4, it's not that hard to argue for a negative gdp print. >> so i guess i would start by saying i think the recession versus soft landing debate, we didn't fall in really either in a traditional sense because the whole notion of a rolling recession we've had pockets of the economy that have had their own recessions manufacturing, housing, housing related, a lot of consumer oriented goods a soft landing in a traditional sense isn't really a possibility because of those aforementioned hard landings. you know, the problem now is very obviously the rise in oil prices which doesn't have as much ripple effects into other segments of inflation as was the case say in the 1970s, but it

does have a quicker impact on consumption patterns which is why i think the spike in oil prices has brought back in the formally notion declared recession. look at housing starts today, unfortunately where there was some hope for offset with improvement in housing, may be rolling over again. >> how do we go from so many conversations about achieving energy independence, right, to a point we are looking at so much excess capacity between the saudis and opec plus where we're essentially being held hostage to some degree >> yeah. and clearly with decisions that are made by members of opec to restrict supply that can cause an upward move, there's been a bit less production in the united states, certainly relative to what we saw back in the -- on a mid -- we're calling

it, not to mention the fact that you've got these other constraints already on the consumer, but also some of the big sort of corporate consumers of energy, like the airlines, and you're seeing that reflected in stock prices. this is more of a supply story on oil, not a demand story, which is why it will be interesting to see how powell addresses it given the blended instrument of policy changes and rate hikes can only affect the demand side not the supply side. >> what's the strategy do you do a traditional recession type playbook? consumer staples and utilities should you be looking at other strategies this isn't a typical economic cycle. >> it isn't. this cycle for the most part defensives have not been those classically defensive areas like staples, like health care. you know, we've had a couple of

bouts where during tumultuous times, particularly during the worst part of the pandemic, but then this year when we had the banking crisis what became the defensive areas actually were up the spectrum into the tech, techi kind of space. in the pandemic it made sense because those represented the ecosystem in which we were all living and that was the only ecosystem that was thriving in that environment i think in a banking crisis it was more about stability and strength via cap and strength of balance sheets you're not seeing the kind of consistent out performance among those traditionally staple areas, and i think it goes back and reinforces what, as you know, we've been talking about for a couple of years now which is factor oriented investing you can get defensiveness via factors by looking for interest coverage and strength of balance sheet and strong free cash flow, add in the growth factor like

positive earnings revisions and get out to where opportunities lie and, frankly, where there's been more consistency in terms of performance, has been at the factor level, not at the sector or simplistic growth versus value index level. >> finally, on employment, i know you're watching claims every week there's been attention pointed to some of the elevated levels in states like california. i think consensus is looking for job growth to basically dwindle close to zero by next summer does that fit in line with your forecast >> it dpupz you-- does. you've seen payroll growth every month this year has been revised down the trend on a rolling three month basis has been down. we haven't seen it yet in terms of a big spike in unemployment claims we're getting close to 80% of states that are seeing it, but i also think that that disconnect between the deceleration in

payrolls and the lack of a major move up in claims, is all part and parcel of just how unique this cycle is, including the labor hoarding story, which may be getting -- that story may be getting a little long in the tooth just because of companies, the necessity of companies having to cut costs in order to protect profit margins as inflation comes down. >> that's why the workweek is getting more important too it's going to get interesting here the last few months of the year talk soon. thanks liz liz ann sonders. we're waiting for the stock to open, the latest indication it could open at $39 per share priced at 30 on the high side of the range and expectations, a $10 billion valuation. looks north of that as we wait for the opening trade. interview coming up with the instacart ceo as well. dow is down 170, and now only one sector higher t s 5inhe&p00 which is energy. we'll be right back.

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two weeks left to go in the third quarter where things stand in the market starting with the energy sector which is the leader in september as well as the overall quarter as you can see there. now jpmorgan's marco kalonvick an overweight rating on the sector citing rising commodity prices and lower investor allocations to those stocks. also says the odds of a soft landing are shrinking thanks to higher oil prices, persistent inflation geopolitics and the risk of a steeper yield curve. bank of america data shows its clients were net buyers of u.s. equities last week led by the financial sector, which saw its biggest in flow since april. consumer discretionary saw its biggest inflow since june and posted six straight weeks of inflows along comp services tech was the outlier. that sector on pace to reportedly decline as we near the end of september those are the key themes to keep in mind for this quarter as we head into the all-important holiday shopping season. >> coming up fast. thank you, dominic chu.

still ahead the ceo of instacart as the company goes public on the nasdaq after pricing at the top end of the range. an interew y dviouo not want to miss we're back in a couple minutes you know when you have those moments? that time to reflect. to be like wow... what did i do to get here? (city ambient noise) right. work. you worked hard and it's time for a bank that'll work hard for you.

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"squawk on the street. i'm bertha coombs with your cnbc news update. the five americans released monday in a prisoner swap with iran are back on american soil a plane carrying them touched down at military airfield in d.c. early this morning. they were freed as part of an agreement that allows tehran to access $6 billion in oil revenue frozen under u.s. sanctions. five iranian nationals were also

released from u.s. custody in the deal. a moscow court meantime has declined to hear an appeal from an american journalist detained in russia since march on espionage charges. "wall street journal" reporter evaners go covich was trying to appeal the court's decision to keep him behind bars until the end of november. there is no trial date yet set for ger go vich who the state department has declared wrongfully detained. the search for a missing f-35 fighter jet is over the $100 million jet went missing sunday when military officials say the pilot ejected because of, quote, a mishap and left it on autopilot the debris from the crashed jet was found in a remote field last night two hours from the base where it took off. no one was hurt in that incident i have to imagine that pilot

must be getting a lot of questioning. >> yeah. a two-day ground stop as they review procedures overall for a lot of aircraft. thank you. instacart going public today. it priced at $30 a share last night. current int kagsz suggest the stock could open as high as 39 we're keeping an eye on that deirdre bosa sat down with the company's ceo and joins us with a lot more deirdre? >> this is an app that was launched in 2012 saw its valuation shoot up to nearly $40 billion doourlgts pandemic and going public around $10 billion. it's a rare gig economy posting with profits due to its advertising business growth has been flat i talked a to fidji simo why now was the time to go public and how she could reaccelerate growth have a listen. >> we felt that it was really important to give our employees liquidity. as you know the ipo is not about raising money for us

it's really about making sure that our employees have liquidity on a stock they work hard for we weren't looking for perfect market window. we were all looking for, you know, supporting investors and the fact that we have had such, you know, good business results and five quarters in a row of profitability, including, you know, close to half a billion dollar in ebitda over the last four quarters, gave us the confidence that we needed to go public and get the support from investors that we hoped for. >> right and you guys are going public, a very different valuation than where you were a few years ago how did you arrive at the decision to price where you did and the valuation where you settled on >> as you know the markets have readjusted greatly between back then and now but really what we focused on is our business performance and our business performance is

undeniably stronger now than in 2021 when i took the job our worst transaction volume at the time was shrinking and now we're growing. there were a lot of questions about whether instacart would be just another pandemic fad, and we have now proven that we not only kept the covid gains but grew on top of the covid gains and grew sustainably and profitably which is really important. surprise was, you know, very robust price discovery process, as you imagine, like in any ipo, but we feel like why not focus on the price today or into the next ten days, but really creating value for shareholders over the next ten years. >> part of what you're referring to is that the business really did take off during the pandemic you saw huge growth rates. since then, you know, this year it's been flat how do you return to growth? >> well, i think a couple things to keep in mind. first off, like, you know, when i joined as ceo in '21 a lot of

people were actually wondering if the business was going to shrink and it was shrinking as a result of '21. since then we've grew, our transaction volume 20% in 2021, 16% in 2022, still growing this year this year we're seeing more of a slowdown because it is the first year that has no covid impact, and it's also a year where we weren't impacted by pandemic benefits ending and so that's creating a slowdown in our business but as for how we accelerate growth going forward, you know, we are going to continue to do the things that served us well to get to this point which are adding absolutely unmatched selection, having great affordability options for all kinds of customers, having the absolute best qualities so that you get it to your door that you need and the best convenience. that is what has made us a market leader and what is going to continue to carry our growth.

then we have also diversified the business and invested into new growth paths connected stores, where we are now building technologies not just for online grocery delivery, but also for in store because 90% of the transactions still happen inside a grocery store. that's a big drive of our growth as well. >> some of your gig economy competitors like uber and doordash, they're sort of facing the same backdrop. they saw growth slow after the pandemic but growing at a faster rate than instacart is right now and they're trying to build up their advertising business how do you remain competitive with them when you're growing slower >> i think it's two fundamentally different markets. restaurant delivery is a different market and skill set than grocery deliveries. you're seeing the players try to enter the grocery market, which is a large market. it's normal it's attracting a

lot of new entrants. but we have an 11-year advantage on them because we have built all of the depths of integrations with our grocers. we have 85% of the industry on esther instacart. not just retailers on our marketplace, but retailers leveraging our technology, even for their own operated website all of these are powered in one form or another by instacart, and that's, you know, fundamentally the recipe to our success allowing us to deliver a much better, superior customer experience. >> right you've built up an advantage in data over the years, and something i've asked you also over the years then, the former ceo before you, if you would ever go vertical and build out your own grocery business, given how much information you do have similar to how doordash is

building out its line of dash martz. the answer is always no. is that still the case >> that's the case we see ourselves as an enabler for retailers. when their business grows, we grow when they win we win we do not compete with our retailers. that is a drivenation between us and our competitors. we don't compete with them. >> is that always to your advantage, though? some might argue that doordash building out its own line of convenience stores and possibly grocery stores in the future gives them a better view of inventory, more pricing power. how do you think that plays out? >> i think with what fundamentally matters in grocery is having massive supply and selection because customers are very loyal to their grocers and the fact that we have, again, 85% of the industry on the platform is a core competitive advantage. as for inventory because we are

so deeply integrated with grocers we have a view into inventory and we have a view thanks to a.i. and machine learning, into what's on the shelves at a given point in time and it's not on the shelf we can sugg the best replacement based on billions of data points we've accumulated over the years that's what makes it a be superior experience. competing with our retailers would not help us in any way we have the winning experience. >> current indications for instacart to open at about $39 so that would be a nice pop. remember, very small float here. guys, most people know instacart as a grocery delivery company, but it is the advertising business that provided a sizzle for the ipo today. this is the higher margin business, growing faster accounts for 30% of total revenue. i did ask if that's in conflict with partners that it depend on

advertising, they like the customers and technology that instacart brings them. when they win, her partners win. instacart wins that's been the formula so far we'll see if that continues to hold, but again, you know, she says every time i talk to her they will not be competing with their partners, which differentiates her from say a doordash. >> but deirdre, as someone who has -- i've followed the grocery stores a little more closely and watched the growth of on-line business i don't understand what the instacart's moat is. they don't have the supply chain. walmart doesn't need them. walmart can build out their delivery business themselves kroger can do thatas well. they have the scale, they have the supply chain now they have the online capabilities so i don't understand what differentiates them in the grocery business >> we're going to play more of the interview later in the day, but i asked her exactly that that's a good preview. why does walmart need you? they're building out their own logistics business

she says what instacart brings them is incremental customers that may not shop at walmart, but may be on the instacart platform when you think of a kroger's or albertson's too, you can tell me this, sara, feel like there's probably less desire to build out a logistics or delivery network because that is costly if instacart can do them for them at the same time we're seeing consolidation in the grocery industry as well going forward, they may have more leverage and this is all about fees instacart is a three-party platform that's going to eat away at margins. i go back to the grocery business which makes them profitable before a doordash and uber. >> their top line growth is not particularly strong, is it >> no. it's not it was flat this year. they saw these huge gains during the pandemic, but what fidji simo says they're not just a pandemic darling they believe that, you know, there's such a small percentage of groceries being shopped for

online right now, they can double that and that's still a small portion of the overall percent of the grocery industry. but that is a big question how do you reaccelerate growth that's what i asked her. if advertising is your business but the base and core isn't growing, how do you increase that when some of the competitors are growing at a faster rate. that's something she's going to figure out that they're going to do what they've always done but introduce more technologies and that's sort of what she believes instacart's strength is, is that she's never going to compete with their grocery partners. she's going to make it -- enable them to compete better by giving them the technologies and that's why, you know, i think that they're investing in a lot of the auto makes that they are and the companies they are like automated grocery carts. to kind of balance the idea that they're taking advertising dollars away but giving them technology and these are more of the traditional grocers. not the walmarts developing it themselves. >> it's interesting to hear from

her. her background, she was the head of facebook app. >> yeah. >> at meta. >> yes. >> not a surprise she's pivoted the business around advertising. >> they've taken a lot of executives, several i should say, from facebook and amazon and that's their play. they want to be seen as an advertising company. that goes back to the founder i remember meeting with him in san francisco, we're an advertising and enterprise business. i'll believe it when i see it. then the s-1 dropped and there's some muster behind that. >> yeah. i remember caroline everson was there. a few executives look forward to more sound in the next hour from the instacart ceo. as we await that opening trade when we come back key headlines for investors as president biden takes the podium at the u.n. general assembly in new york as we head to break check out the biggest gainers on the s&p 500 this morning lot of energy, lot of cruise lines. some optimistic comments on the outlook for 2024 helping the cruise liners. energy continues to move higher

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president biden just wrapping up his annual remarks at the u.n. general assembly in new york this hour eman javers with headlines. >> hey there the president did just wrap up within the past couple minutes and touched upon at the

beginning of his speech the role of a.i. in the world a.i. is becoming one of the sub-themes of this u.n. general assembly here. here's what the president had to say in terms of a u.s. vision for rules of the road going forward. take a listen. >> emerging technologies such as artificial intelligence hold both enormous potential and peril. we need to be sure that they are used as tools of opportunity, not as weapons of oppression together, with leaders around the world, the united states is working to strengthen rules and policies so a.i. technologies are safe before they're released to the public. >> and sara, the president also said that the u.s. goal here is to make sure that we govern a.i., not that a.i. governs us something everybody in the room could agree with he talked about the competition with china saying the united states seeks to manage that competition so that it doesn't tip into conflict.

he wants to have a responsible relationship with the chinese government he talked about climate change, saying at one point we need to find market be incentives for green technology a wide ranging address here from the president of the united states at the u.n. general assembly. >> the overall story as it relates to geopolitics this week president xi is not here and the absence of other major world leaders was thought to be a benefit for president biden on the world stage when it comes to courting allies. >> yeah. we just saw a note from some white house pool reporters in the room at the u.n. general assembly and said the chinese delegation area there is one official sitting there, but there's some empty seats in the chinese delegation area, although the rest of the seats throughout this entire hall is pretty full. the chinese may be giving a pass to the president's speech this morning. volodymyr zelenskyy is in the room we do expect to hear from him on ukraine and russia and there's a russian representative in the room you have this fascinating dynamic of zelenskyy addressing

the room at a time of war, with the russians sitting right there watching him it is a fascinating moment in history. sara >> absolutely. thank you. eman javers, keep us posted on the unga. indications of instacart as we await the opening trade here. the latest indication we get is that it's 39.50, so continues to move higher past that $30 where it priced last night, gen at the upper end of the range for instacart valuing at well over $10 billion. i think there's going to be a debate, david, on this one in particular about what it signals about the health of the ipo market and the future prospects of instacart just because the supply is -- >> it's a supply-demand story than a reflection of the underlying fundamentals of the company. it is profitable we've made this point many times, but we should continue to, it's an extremely small actual offering. $600 million but you have cornerstone investors stepping up for most of that.

we're really talking about distributing a little more than $200 million worth of stock. you don't need a lot of demand to soak that up. anybody who owns it is probably going to flip -- many may flip it, up 30% it's going to be a little while until we really know what underlying price shoul i've argued maybe that comes when the lockup expires and you see who sells and there's a lot more stock available. >> it's going to be one to watch well past post day pop, because clearly there's a scramble. in the meantime coming up at 11:00, the ceo of chipotle is with us. we'll get a read of consumer inflation and a lot more we're at session lows, 4424. haven't beenel 4 bow400 since august 25th. we're excited about what ai will do for business. introducing watsonx a platform designed to multiply output by training ai with your data. when you watsonx your business, you can build ai to help coders code faster,

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let's run down that strike plan again. this was announced last night by the uaw. noon friday is the noon -- is the new deadline the expectation is that some time before that, we may hear from the president of the uaw who last night said, look, if you don't want to see more strike locations, we need to see serious progress being made in these negotiations he alsosaid, we're not messing around one of the automakers that is front and center in all of this is stellantis. for the uaw, the push with stellantis is to keep as many of their facilities open as possible there's been discussion about stellantis closing as many as 18 facilities many of them parts and distribution centers that is at the heart of this as is the question of one of those six final assembly plants. the plant outside of rockford, illinois it's been idle since february. that's part of the discussion, does it fire back up as a manufacturing facility is it reallocated in some other

fashion? here's the coo of stellantis talking with us on "squawk box" about how stellantis is approaching these negotiations and whether or not they have contingency plans in place if this drags out. >> we have contingency plans in place that executed when the contract expired our key focus is making sure we have our customers covered on the front end of the sale, on the mopar side if somebody has a service need as well we're really making sure we're careful. >> part of that contingency pla is the fact they built up inventory more than gm and more than ford over the last several months really over the last year. they've known this deadline was coming they have 85-day supply inventory for jeep, 100-day supply inventory for ram that is much better than gm and ford and if this drags out, guys, that could be crucial to stellantis being able to weather the storm, so to speak

>> all right i want to check the phil lebeau meter, meaning what you think the chances are that this thing gets resolved. yesterday i would say it was pretty negative. has it moved at all? >> no. very little. hasn't really moved at all, david. i'm still not optimistic based on the people i'm talking with that we'll see this, certainly not resolved by friday i would be surprised if it's resolved by friday and if we see more strike locations announced at noon or shortly before noon, that wouldn't surprise me at all. >> and the presence of the administration, not to mention former president trump, i mean, they don't seem interested in having these outsiders, so to speak, get involved. >> i don't think the uaw is interested, david. i think the uaw's position is we have a right to collective bargain and to strike. that's fine if the administration wants to talk with us. but they're not mediating. we're not getting in the same room with them i don't think it's having much impact at all right now.

>> yeah. all right. going to keep checking that lebeau-o-meter i'm keeping that one trademark pending. phil, thank you. phil lebeau continuing to, obviously, cover that all important strike with uaw. markets in negative territory. disney shares down 3.5%. on a plan to increase spending significantly over the next ten years in the parks and $60 billion. had been $30 billion over the last ten years, but their investor day has not been positive those shares down 3.5% weava t resq he lomo "uawk on the street" straight ahead with comcast business... it is. is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic

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♪ (a lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ a bank that knows your business grows your business. bmo. good tuesday morning welcome to another hour of "squawk on the street. i'm carl quintanilla with sara eisen. today energy prices a major part of the fed's inflation fight. citi's ed morris will join us on why he says $100 oil may be coming. the ceo of chipotle on the state of the labor market,