means that bonds could continue their selloff if we get better data. >> wow. you're good at tv. you left us 15 seconds. we got to go. thanks, cameron. good to have you on this morning. all right, that does it for us today. make sure you join us right back here tomorrow. have a great day, everybody. right now, it's time for "squawk on the street." ♪ good thursday morning, and welcome to "squawk on the street," i'm sara eisen with jim cramer at post nine of the new york stock exchange. david's on assignment. carl has the morning off. taking a look at futures, the post-powell celebration continues. s&p futures up 38. we are seeing buying across the board. nasdaq also getting a bid, about 200 points, continuing yesterday's afternoon rally. it's actually the fourth consecutive day of gains on the back of lower treasury yields. our road map starts with the fed one day after its rate decision. we're going to break down wall

street reaction. on the earnings front, starbucks among this morning's top gainers. demand for higher priced beverages helping to fuel better than expected results. we also have anti-obesity drugs driving quarterly profits but there's much more to that story. we will fill you in on this very busy day of earnings. we're going to begin with the aftermath of yesterday's fed decision, yields moving lower this morning, down s&p, each aiming for a fourth straight day of gains, nasdaq going for five, jim. the market heard what it wanted to hear, which is that they think the fed's done. >> a lot of shorts have to cover. i felt a combination of what powell said, which was basically going our way, there was one moment, of course, where he said, listen, we didn't talk about cutting, but that, plus the underrecognized quarterly funding statement which was supposed to be business as usual but was anything but, assistant secretary for financial markets josh frost, made me pass this

guy a hundred times going to wendy's or the dunkin donuts next to the fed, but the fact that there's mostly ten-year and three-year makes it so that there could be equilibrium on the 30, and that, plus what powell said, really does create a momentary, let's say, squeeze, because maybe there won't be enough 30-year paper, and maybe there are not enough stocks in the s&p 500 for sale right now, including the magnificent seven. >> i think what it showed us is that the fed and the treasury are both paying attention to what's happened in long-term rates. >> i think they're watching -- i think they're watching our shows and recognizing that the to tone-deaf nature of treasury no longer cuts it. people react to attacks. they'd like to not. >> you're talking about druckenmiller? >> well, i think that druckenmiller is not alone. the idea that you shouldn't pay attention to what the market says is something that secretary yellen probably didn't want to be known as. secretary mnuchin, secretary

geithner told me multiple times that my strategy of going long would cost the treasury a great deal of money, and gieithner ended up trading, and mnuchin, i worked for his dad, i think he was just poorly served by his own thinking. >> you're saying no one took advantage of the low rates to issue long-term debt, and now we're in this pickle. >> i said, why don't you do a 50-year? it got a little laugh. maybe i am a legendary wall street funny man. >> it would have been a good move, certainly now. >> in retrospect. would have, should have, could have. >> a plot of debt at much higher rates, and that's going to cost. but to your point, i think that announcement yesterday, lower than kpexpected, on top of a we ism, i should note, which is really changing gdp expectations for the fourth quarter and bringing them down. the market's cheering softer economic data. as long as we're not barrelling into a recession, and then powell switching his message a little bit, saying the risks are

more balanced in terms of overtightening or undertightening. >> did you detect a kind of smile that maybe he's getting it right? >> i think he felt good. >> when he said -- i'm sorry, i didn't mean to talk over you. he said, the labor unit cost, it's going its way. tomorrow -- >> i don't say day. >> we have apple tonight, and we have unemployment tomorrow. these are two such big looming items that they are the goal posts, so we don't want to move them after tonight and tomorrow. but anybody who's short this market, anyone who's adopting mike wilson's view, is going to be -- it's going to be caught trying to figure out what happened to their year, because the shorts had their way until this week. >> well, part of it is earnings, and earnings have been a little bit bumpy, but mostly okay, and it feels like ceos are attuned to the macroeconomic risk, and they're feeling a little more cautious, but they're not talking about recession, and there are some really good

stories out there, like starbucks. >> of course. take -- yes, i'm seeing them today, and i have them on tonight, and it was an excellent story, u.s. domestic was fantastic. you watch football. i know you watch the -- >> the bengals only. >> that's okay. but the refs, this year, a lot of times -- this year, they're really terrible, and there's a lot of them, upon further review. upon further review, meta was good because ads came back according to pinterest. upon further review, google was good because youtube turned out to be very strong. upon further review, amazon at $117 was a major miss, so you have these upon further reviews, and they're very strong, and the initial reaction seems to be almost dictated by the bears, but i hope they covered, because we are now about to have, let's say, a bonfire of jellystone national park. >> a lot of that this morning does have to do with rates. we got a 20% chance now that the

fed raises in december. it's not zero. >> no. >> and by the way, chair powell did say that there could be room for additional policy firming if we continue to see inflationary pressures. but the market is treating it that way, and just some of the -- >> do you like that, sara? do you like that the market, even though he said the discussions are more parfor tightening, do you like the market's kind of soto voce judgment that has been wrong since the whole time we had the inverted yield curve? do you remember that? >> i think the market makes sense because of what he said about the dot plots. the dots indicated one more rate hike that we were going to get before the end of the year, but did you hear what he said about that? he said the dot plots can decay. in other words, they can be stale. playing that down, i think, psychologically, for the market, was like, okay, maybe we don't have to build in that rate cut. >> favorable moment. because something that is regarded as orthodoxy, he threw out. >> right. >> he just said, listen, those

who think it is -- >> they should just throw out the entire dots. they're confusing and old anyway. >> i agree, and that's why i want you at that press conference so you can really pants the federal reserve chairman. sorry for the verb. but i think that was the key moment, because what it said was those who think that we have to live by what we said don't look at how we're winning. but how about the fact he wants six months of good data, and two months of good data did not a cut make. i know we'll be playing some gundlach sots, that's a term of art for tv, but the idea that it could be good or bad, i don't know. that's not where i play it. >> i think you just have to watch wage growth, which powell said he feels good about. we do have that gundlach sound, sot, because he expects the treasury to keep going. >> it's almost like we're the equity holder back before the global financial crisis in a cdo squared type of financial scheme that ended up causing parts of

the crisis. we need interest rates to come down or the deficit to come down, and neither of those are happening with the fed higher for longer and with these wars that we are intent on funding to -- i hear the words blank check. this is -- we're on a collision course with this defcon, going to defcon 2, and i believe that we've started a bond rally here. i think we have had such a brutal increase. i think the fed is sounding the right tone. i do think rates are going to fall as we move into a recession in the first part of next year. >> little alarmist there. >> yeah. you know, people come on, the billionaires come on, and they tend to be alarmist. i think that they uniquely keep people who are not making that much money in the market out. they keep them in their 5% cd chains, and it's a shame, because there are people who might have wanted to own amazon because they think it's a good company, and they won't own it because of billionaires who come on our shows, and they do quite often, and basically tell you

that, sorry, the door is closed. i dislike that. and i think it's a suboptimal way to think. we can help create opportunity not by telling people that you should buy amazon but -- and i'm using that as paradigm -- but to show there are opportunities that abound for those that are open minded and i think people of conviction. and i think the most important thing yesterday was we might have bond equilibrium, which allows us to focus on earnings, and i think you're right. i want to talk about a company that you know quite well, mondelez. >> wow. that was a good quarter. >> no, it was a great quarter. >> it was a great quarter. >> and i think it was a great quarter and also put to rest something we'll be talking about later, which is the glp phenomenon. >> we'll talk about that. >> did i jump the gun? >> you jumped the gun because we have breaking news from ford, and we want to get to phil lebeau with the latest. >> hey, sara. ford's october sales dropping 5.3%, and when you look at the breakdown of vehicles within that 5.3%, october truck sales

down 10.5%, but f-150 lightning, and remember, they're ramping up production of the lightning, the all-electric f-150, up 52.4%. the mach-e in october, sales down 10.6%. and one last note. we've talked about the pivot that ford's making towards hybrids. in october, ford had its best month ever when it comes to hybrid sales. i was told by somebody that the f-150 hybrid, two to one sales over the f-150 lightning. that shows you that there is that demand that's in the market, guys, when it comes to hybrid vehicles, which, by the way, are outpacing electric vehicle sales for the industry this year and also, jim, you'll find this interesting. october, second straight month where internal combustion engine vehicle sales dropped under 80% here in the u.s. so, we're clearly continuing to see the meltdown, if you will, not a meltdown, a slow melt of internal combustion engine vehicle sales. >> but were you ever right when

you said that jim farley was really going to emphasize -- you know, he's going to emphasize something in between, basically, and i think that's terrific. you know, the hybrid is a great seller. phil, let me posit something to you. there was a lot of people -- there was a twin blow against ford. there was obviously the union. people didn't like the quarter. then there was also this tesla, this cybertruck. $100,000 for a cybertruck that i have a maverick, okay? apparently, this does not have the payload of a maverick, which fits in a small parking spot on any urban street in this country. i checked, and the durability of the metal is not there. i wonder whether this man can sell even 50,000 of the 200,000 cybertrucks and this may be ford after all the sturm and drang of

shawn fain. >> i will say this with regard to the cybertruck. we should see the first ones delivered at the end of this month. it's going to be a slow ramp-up in production. they're not even going to get up to where they would consider full production until well into 2025. and i also think you should keep in mind -- keep this in mind. given the price point, given the design, given the capability of the vehicle and what it's designed for, it's going for the urban market, particularly those urban markets that are into electric vehicles. southern california, oregon, washington, the coasts. you're not going to see the cybertruck in big numbers in kansas city, st. louis. i mean, it's just not going to sell there. will there be some? yes, eventually, there will be some. but i do not look at this as one, sara -- a vehicle that people are going to say, well, i'm not driving the chevy silverado or f-150 anymore, i'm driving the cybertruck. i don't see that happening. >> yeah, as a threat there.

in the meantime, it faces enormous challenges, according to elon musk, in getting off the production line. phil, thank you. i also think the upgrade to investment grade credit on ford is a big deal. >> yes, it was. very unheralded, in part because there was a sense of actually disarray at ford. i disagree. the travel trust owns it. i can't be happy with a stock that goes down big. i am happy that we got through the labor negotiations, and the fact that -- what phil said about the, really, the profitable line, f-150, is fabulous. >> all right, well, they are going to have to pay as much as 25% more in earnings for uaw workers. i think they're cool. >> $100,000. that's great. it's cool. >> you'll have to wait a little. >> i'll buy 25 suits for that. still ahead, a ton of earnings numbers ahead. we are going to go through those mondelez numbers. qualcomm, roku, others, they're all rallying today. look at these numbers. look at palantir, up 17%.

futures overall are in rally mode. it comes in the back of earnings on the fed and the lower treasury yields. dow futures up 216. more "squawk on the street" straight ahead. this is spring semester at fairfield-suisun unified. they switched to google tools for education because there's never been a reported ransomware attack on a chromebook. now they're focused on learning knowing that their data is secure. ( ♪♪ )

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let's turn to eli lilly and novonortis. both stocks rallying ahead of the open. lilly is up another 2%, jim. no surprise that the blockbuster obesity and diabetes drugs are driving the charge here on volume, even though both

companies are dealing with capacity constraints. they just can't make enough of them. supply is tough to catch up. >> novo nordisk has more right now than mounjaro, but that's going to change. 1.4 billion, looking for 1.28 billion. this is without the approval of weight loss versus wegovy, ozempic. these are remarkable numbers. i would point out that there is controversy about how much is going to impact -- >> just how widespread. >> volume of eating, but the fact that he's using this number, 48 pounds, is rather extraordinary. 18% is typical, and it happens within a five-week period, which is something that people are still marveling over. but the 67% of the people are averse to giving themselves a shot, so they would like a pill. i think that number goes down as

people see the success, but that's a high number. >> lilly also benefitted from pricing. i mean, fewer people -- >> this is going to be the best-selling drug of all time. you're going to see a new readout on blood pressure. you'll see a readout, constellation's ringing the bell, the hard liquor numbers are not so good. people drop it. the tests are going to be for two drinkers a night, heavy drinkers. lots of that, by the way, during covid. you'll also see they're doing it for sleep app nea. it's a wonder drug, and a wonder drug like this sells before it's even been approved. >> is it just buy eli lilly, or do you buy mckesson, a drug distributor, raised guidance last quarter on the results of these blockbuster drugs. >> mckesson always seems to get in the mix. i take the migraine drug that is a competitor to what lilly has,

and you deal with mckesson. you don't deal with amgen. >> but it's trading at a lot lower valuation than lilly. >> these middle market players do not share the high multiple. eli lilly is the largest now, number one drug company, and don't forget, we do have -- dave rich confirms, it slows disease, slows dementia by 35%, and you can catch it early by 60%. those are not new numbers, but he reiterated that today. that could be first quarter approval. mounjaro, if you can get mounjaro and you want it, take it, because you can't find it. >> right. well, that was part of the thing. that's hurting demand, fulfilling orders. >> i always find that a high-quality problem, way too much demand. >> right. they'll catch up, you think? they're building up. >> not within two years. i don't think you can put up enough plant to be able to meet demand >> well, 1$1.4 billion of the drug in the quarter and dwroeg.

>> it's going to be high blood pressure and obesity that's going to force the hands of the health insurers to pay for it. we're going to talk about the impact on mondelez or lack of impact. >> mondelez is a company that i was going to hit you with a yard-long tobleron but i like you. when we come back, cramer's "mad dash" with futures in rally mode, dow futures up almost 200, s&p futures up about 34. ten-year note yield in the 4.6% range. more "squawk on the street" when we come back. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today.

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time now for cramer's "mad dash" as we downtown you down to the opening bell. >> we like to do read-throughs all the time, and qualcomm reported last night. one of the reasons why apple's

stock is rallying is its partner and kind of i put little quote marks around that because there's not a lot of love lost there, christiane said last night they'll be town mid to high single digit percentage but that's an improvement from prior expectations. he's basically calling for early stabilization of demand in handsets, given the fact that he is apple's partner, people are saying, this is the beginning of what could g bbe the end of the downturn in apple. some say, wait a second, he's talking about other phones, chinese phones, but i would say that -- and i'm not an apple bull ahead of this quarter. i have my same strategy for apple and nvidia as i have been sharing for years, which is own it, don't trade it. however, there are always people who want to say bad things about apple, usually from their apple, and tend to be completely wrong, but get the microphone. maybe something we should be a little more cherry of, which is

people who have been endlessly wrong on apple having the right to opine on apple. i'm very pro free speech. but should there be free speech for people who are constantly wrong? i guess so. i have to go to madison and jefferson. i'd like to speak to madison and jefferson. and i'm not just talking about the people who play for the vikings. >> so -- >> people want to read through to apple, but why don't we just wait for apple rather than do the read through? am i too cautious? whatever. >> apple is rallying premarket ahead of earnings, although town more than 10% since the last quarter. >> look at how much it's up this year, or do we just forget that too? >> it is still up this year. >> big. >> opening bell just a few minutes away. we're back on "squawk on the street" in two minutes.

>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. the shift is noticeable, largely because those channels offer larger packs, both online and in the club chamnnels, and

that's what consumers are looking for. we see our volume share going up overall due to the share that we are gaining, although those channels are not always measured, but we know that our shares are going up there. so, we feel pretty good about what's going on there. the margin for us is about the same, so we don't see a significant margin effect. >> that was mondelez ceo dirk van deput talking about the consumer. this is the company, jim, that you know makes all sorts of snacks like oreos and nabisco and toblerone, and boy, was it a good quarter. really strong growth in places like latin america, and they also saw volume gain, so it wasn't just driven by higher prices. on the call, the company talked about the fact that they expect that to continue, especially in places like india. >> right. and i think that what we heard

was that snacking is -- had been hit very hard by the eli lilly, and of course by wegovy from novo nordisk, but just no impact, and made very light of it, wouldn't be significant over a ten-year period. i think we put a stake in the heart of the glps as the end of snacking. i don't know whether i want to read through to other snack companies or read through to what jm smucker did when it bought hostess. i will say this. this man knows how to run a darn company, and other than biscuit softness, i saw nothing that i didn't like. in europe, when you go to, say, eataly, one of the great stops on a-1, one of mussolini, one of the few things he did other than get the trains on time, oh, look at that. to the left is a stack of oreos. >> is this your photo? >> that's one of the first stops

after milan when you're going south. >> we just had that photo? >> i like to take pictures of those things. >> i mean, it's true that the global -- there's a company that gets 80% of its sales overseas. >> right. that's why -- >> the opening bell on the cnbc rea realtime exchange. here at the big board, constellation brands, here for its investor day. at the nasdaq, sandwich shop potbelly celebrating its tenth anniversary of its listing. >> this is a much anticipated analyst day, first one they have had. a lot of it is elliott partners is now, i would say, a subtle push. will they do something significant? maybe sell wine and spirits? spirits are doing particularly bad all across the board, and just to emphasize cash, well, they talk about how well their nonalcohol beers are doing or will it just be business as usual, which i find to be --

>> and cannabis too. >> that was a previous administration that i will just say, point-blank, blew it. but the emphasis here is modelo and corona, and if they would put more money behind pacifico and nothing for victoria, which is a premium beer, nothing to be done. the stock is coming back. it was hit very hard by the glp. they won't drink beer, which, by the way, there's no evidence other than hard liquor that it's been hurt. >> some might say we're in early phases of these glp drugs. they're going to get more attention, more insurance coverage. >> no disagreement. >> the health outcomes are amazing, and we don't know if that's going to happen. i agree. this is the quarter of pushback from coca-cola to pepsi to mcdonald's. >> it was really that one comment out of the walmart that really -- that was kind of walked back. >> smaller basket sizes. >> what we do know is that these analyst -- both the ceos and the analysts get it wrong. it's about volume consumption. i mean, for instance, very good

mondelez talks about, well, we happen to have healthy things to eat. that is the exact opposite. it's about having -- buying a thing of twinkies and being full after two bites, and if these people don't start understanding that, they're going to miss what happens with glp. it's not about eating healthier. it's about eating less. >> lighter. >> you look -- well, tyson would do well if they weren't one of the worst companies ever run, but you need protein, and people who are on this don't want to eat dinner, and that is really the biggest problem. secondarily is they need to work out more, and people don't seem to realize that either. >> anecdotally, people crave salt and not sugar on these drugs. >> soft pretzels, yeah. >> s&p is open up and 1% here. it's a strong open. every sector in the green right now. nasdaq is going to open up more than 1%. >> should we talk about some losers? moderna? >> okay. >> stephane bancel?

once again, anything that did well during the covid period, the hangover from covid is really extraordinary. the only one that -- people were stuck home and they watched a lot of tv, and sure enough, roku, with a new head of roku media is doing quite well. good quarter. >> i thought you were going to mention solar edge technology. >> no, because that -- those are invitations to your funeral, sara. >> i mean, that one is going to be down 9%, even though this company preannounced and we knew it was going to be a weak quarter. european demand has fallen off a cliff, seemingly. some of the notes this morning, guggenheim, "we give up." bmo, "no mas." >> i thought that was interesting. >> i thought "no mas" was more the powell. >> i think one of the problems is the fickle nature of european countries. my wife has a vineyard and olive grove in italy, which i'm very grateful for, and they were going to subsidize solar and the

solar subsidy kind of went out. also, by the way, an excellent article in "the atlantic," you never know where good ideas are going to come, saying there is the twilight of the solar rooftop, and that's very important. if i want to play solar, i would only do it through eton. how about the twilight of wind turbines? >> the twilight, though? we have the inflation reduction act is just getting going. they're going to be big beneficiaries, aren't they? >> they're in the twilight zone. >> first solar is excited. >> first solar is an actual company. i just think that when you have governor murphy being shocked and blindsided by the biggest offshore wind project, boom, gone, it does call into question how much there is support for these. i think there is the flowback

issue is apparently at stake where you have -- you're your own power plant, and will utilities take your energy? that's a new thing that's now up in the air. it's a very dicey time for solar and for wind. i was hoping that the vernova spinoff of ge was going to be something people would like, but now we have to double down and check on wind youturbines. >> i didn't know that. starbucks up 10%, goes higher for the year. >> it's a big position for my charitable trust. david usually embarrasses me on my bad ones, and i don't mind. but he's come in and said, there's a turn in the u.s. i think when i speak with him later today, i think he's going to say we need twice as many starbucks as we have right now, which is quite bullish. >> in china and the u.s. >> yes. still a huge number. of china, for china, a lot of people felt that china was going to be a pressure point for them. 100% wrong. and get to the 8% number in the u.s. after 7% last time was not

a leap. he always had it in the bag. it was very close. i think this man is an excellent ceo who understands consumer packaged goods and understands throughput, not unlike what chipotle did when they decided, you know what, we can get through a make line. he is both someone who understands cold, which turned out to be much more important than the previous ceo realized, and understands love of coffee. >> they did talk about uncertainty in the macroenvironment. the quote in the release, but remained confident in the momentum throughout our business and we expect sustained momentum throughout the company for years to come. >> you know what? i think if you don't say that you see volatility, your viewed as being some sort of a chowder head. that would be -- other than amazon -- i keep coming back to that, because that was so far, best in show. i enjoyed that quarter. >> buy today, amazon. >> wasn't that good? >> on -- you like that piece? >> yeah. >> it was a bullish note.

starbucks -- >> look at these. look at this. on this seaport piece. horton up $5. well, please. are we back loving the home builders again, sara? i ask you. >> well, if rates come down, we love the home builders. >> that's a good point. >> it's all been about the race. credit card rates are about 20%. >> you have to put a lot -- there's a teaser three that i saw, but you have to put down about 140% of the price. >> did hear from brian cornell today, ceo of target, on the consumer. first time we've heard from him in a while, talking about some of the issues they had with the backlash against the pride day. here's what he says about the consumer right now. >> again, we look at overall retail spending, just look at the top line and say, all right, really healthy consumer, and they are spending. but even in food and beverage categories, over the last few quarters, the units, the number of items they're buying, has been declining. so, they're even tightening up their spending in those categories, but in discretionary

goods, we have seen seven consecutive quarters of both dollars and units declining, so you're buying less apparel, less items for your home, fewer toys, you're seeing some of the pressure in those categories. >> by the way, you can still join cnbc's evolve global summit virtually today where we gather leaders and innovators from around the world. that includes target's brian cornell. >> i know that radja subramaniam may not talk about dollars. i wish that brian had talked about elf beauty. that's a billion dollar brand at target. i'm going to talk about how well target is doing. also, by the way, ulta, but brian's been really hit by the tremendous theft. look. theft is something that's accepted by our country now and accepted by prosecutors. >> they've had to lock everything up if you go to target stores.

you need someone to help you. >> i focus on same-day. same-day is the killer app for amazon. do you know, cvs, i thought, had a decent quarter, but it just doesn't matter. health care can't make up for the fact that the stores make you feel like you're in lewisburg. >> down 26%. >> not bucknell. >> not getting a boost from what's happening. >> what'd you think of etsy? >> etsy gave the bears another reason, i think, to sell the stock when it comes to -- they talked about volatility. they talked about not growing. >> increasingly competitive retail environment. the reason i bring it up is because we're going to have harley finkelstein on from shopify. but again, they are a facilitator. they're like the mckesson. >> etsy was a covid winner, right? i mean, it falls into that group. >> that's true. i just -- i'm partial to them because they're brooklyn's own >> would you buy it, down 50%? >> i can't.

i can't buy a company where the ceo is not as encouraging as i would like. but that's -- look, he knows this business cold. >> you mentioned elf beauty, and it's worth mentioning -- they crushed earnings estimates. they raised their outlook and it comes in contrast to what we got from estee lauder this week. >> i think they're crushing estee lauder. i think they're taking share left and right. i don't mind, yesterday, i spent a lot of time wearing the hair suit for estee lauder. that conference call was one of the worst i have seen this year. >> is it just asia travel? china demand? >> it was -- i don't even -- i don't even know how to describe it. but there was an activist there who, i think the guy was a tool and dye specialist, because he didn't know anything about cosmetics, unlike this man, who's taking share and offers a very good price point. i don't know if you use elf. >> i do. it's great value. >> i snuck some into my wife's mac section, and she didn't know the difference. she looked just as beautiful as

she did the day before. >> and paid a lot less for it. >> i would say so. >> that quote we highlighted there, he talks about they use china as a manufacturing center, not a retail center, which really does point to -- >> i didn't want to share that with my wife, because i think she would say the same thing she says about chinese dog food. >> why, where's mac make-up? >> i'm just saying we tend to like a little american flag on things. >> yeah, well -- >> they've got higher -- look, they offer a better product in terms of the quality at estee lauder, but you also need a strategy. >> i want to hit ferrari also, jim, because there have been some questions lately about the luxury consumer and some of these luxury stocks. ferrari is not having a problem with demand. the stock is up more than 4%. the company beat on earnings. very strong guidance, and talked about the fact that demand is off the charts, basically. >> yeah, lamborghini will say the same thing, doing quite well. $500,000 car, but it does go 180

miles in the street an hour and if you want to test drive, you're allowed to do that. >> it's pretty amazing. >> what do you think about that test drive? >> it was fun. i have been in a lot of fast cars lately. i'm doing this documentary on formula one. and it's called "inside track." premiers november 16th. >> you'll come on "mad money." >> i would be honored. >> we'll talk aggressively and extensively about that, because i think that fast cars are great. lamborghini was founded by a, what, an agriculture -- a man who worked in agriculture and went to ferrari and said, look, i think you can make better cars, and they dismissed him. >> the order book remains at highest levels. >> the uber rich stay uber rich, i guess, huh? and yet they come on air and complain all the time. do you ever tire of the billionaires? i'm sorry to emphasize that, but i find them to be -- i would have said repulsive.

>> you don't like negativity. >> i'm much more gandhi-like. i think they would prefer to keep the people who watch our show in chains. >> because of their caution? risk aversion right now, buying ferraris. >> engels thought the peasants were like a sack of potatoes. that's the original engels. >> this rally in treasurys, we've got the two-year below 5%, the ten-year below 4.7%, so it is picking up steam. the dollar is weaker. you don't always see a fed reaction with follow-through. sometimes you see a reversal once people realize, oh, maybe we overreacted, but you're getting it today. >> i do want to talk about a tip of the hat to one particular billionaire, bill ackman, did get that right in terms of covering. now you've got a supply issue, and there's a lot of people on the wrong side of what's going on. but you know what? they have every right to be incredibly wrong and keep everyone in their chains. >> ackman's been -- said he was worried about the world, which

it has been interesting to see treasurys. >> the world doesn't seem like a super duper place, although airbnb did have pretty good international, but there were others. >> outlook. they talked about volatility. >> i didn't like the outlook. new york has really -- they're not -- >> new york crackdown. >> how about the price of hotel rooms up substantially since airbnb was banned for anything other than less than a month? >> they take away supply and look what happens. marriott numbers. supply and demand. all comes back to basic economics. >> and the yen. >> the yen just gets weaker and weaker. we have to go shopping. >> toyota had 9% wage increases. look at south korea, just give it whatever they want. >> we've got more ahead. we're going to talk with shopify's president on the company's latest results there. that stock is a big winner here at the open, up 16%. see what they say about the consumer. before we head to the break, give you a quick bond report. treasurys are rallying hard. we're seeing levels on yields that we have not seen here in a

few weeks on the back of powell, weaker data yesterday as well. we did get higher jobless claims too as well.

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and laid out a plan to balance our operational ambition and plan and the results speak for themselves. q3 was up to $56 billion, revenue up to $1.7 billion and our cash flow north of $270 million. more importantly, or most importantly, we're seeing more of the biggest brands in the world come to shopify, like ted baker and tom shoes and lvmh and go puff. we are firing on all cylinders. >> you have a couple great -- your ethos is terrific and your social shopping isn't nish, it's mainstream, and then you are really about being able to shop anywhere, which is what customers want. tell us about physical stores being discovery for what you do and social is now mainstream, not niche. >> look, we first of all believe the future retailers, retailers everywhere, our product road map is built around the idea to future proof companies to operate for the next 10, 20, 30

years. on physical retail in particular, it's working. we saw an outsized growth in off-line gmv this past quarter, 26% up year on year and banana republic home coming to us, not just for e-commerce but also for point of sale. when you look at other channels, for example, social channels we think that future retail will be dictated where the comer wants to buy. when you sign up for shopify you can sell across every channel in every market. >> you're the first person other than adobe which talks about ai empowering entrepreneurship, because you share with that and you harness the power of ai for people who don't have everything, unlike the other big guys who we think have everything. tell us about democracy. >> as you mentioned we think we are uniquely positioned here because the ai tools we're building are specifically built for commerce and specifically

built for entrepreneurs. unlike other generative ai products our ai is not one feature, not one product. it's integrated across all shopify's work flows and products. what that means for entrepreneurs and small businesses they can run faster with a higher cadence. it means more democratization of the tools that traditionally only the largest companies were able to achieve and being on shopify you get access to shopify magic and that really puts the power of ai into the hands of every small business and entrepreneur. >> harley, it's sara. does it reflect a consumer in better shape than we think, or is this just moves that you're making? what's the read through from the results and your outlook on broader consumer behavior and spending? >> yeah. thank you for the question. the consumer is very resilient. we're on the precipes of the busiest shopping season of the year and already seeing the power of the consumer. we did a gallup survey a couple weeks ago and american consumers

are not only starting to buy their holiday shopping earlier each year, but also nearly three in four u.s. holiday shoppers plan to spend about the same or more on holiday gifts this year compared to last year and the largest spenders is going to be gen-z, the 18 to 29-year-olds are going to spend -- are going to be the largest in terms of spend. but the other part to think about is that shoppers are staying true to small business, shopping small is big business and most of consumers favorite brands, the smaller or larger ones, are powered by shopify and we think our merchants will see, you know, will continue to be resilient and our merchants will see an outsized opportunity this holiday season. >> when i first met you, i thought that maybe amazon would be the enemy, how is that the buy with prime app doing? >> what matters to merchants most is choice and we want to give merchants the ability to sell across every surface on the internet or in person possible. we recently announced amazon's

buy with prime app will be in shopify's app store in a few weeks. it will give merchants the opportunity to add buy with front and all process by shopify payments. giving our merchants more choice to grow in scale, without having to leave the shopify admin is critical to our mission of making commerce better for everyone. whether it's a company like amazon or any of the other payment providers we work with or fulfillment providers giving choice means shopify will become the most important piece of software in their business. >> thank you for coming on and giving us a story that is about why there is resilience and customers. good to see you. >> thank you. >> snow suits are trending there. >> it's nice to hear about the real world and positives and not be able to say listen -- >> people buy small. >> you're stuck in your chains. it's not. >> no. >> offer hope to people because it's worthy. >> more than negativity from billionaires. what's on "mad" tonight?

starbucks. >> we have draft kings i think they will do a great job, number one over fanduel and then i have to tell you, sara, that there's a new sheriff at starbucks and i think you're going it like the sne person -- >> i knew him from -- >> i mean look i like cage and kevin johnson, but i want a consumer product person in there and one who is strong enough to say we're going cold. one of those. >> coming out strong in the earnings report. the stock is one of the biggest winners on the s&p right now. thank you. >> great joy to work with you as walls. >> yes. >> always fun. we're going to be back in two. taking look at stocks a nice broad-based rally. half hour here into trading up more than 1% on the s&p 500. the nasdaq up 1.25% adding to gains for the week at 4.6% overall on the week. biggest gainers, appletea,, sl starbucks and nvidia. back in two minutes.

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live from post nine of the new york stock exchange. carl is off and david on assignment. stocks we have a nice rally going on here day after the fed meeting with every sector in the green as you can see, who is leading the charts, real estate, consumer discretionary, energy, nasdaq up 1.3%. tech is doing well on top of all of this. powerful move here in rates, lower, seems to be the rate relief is the driving force today. that and a bunch of good earnings we're going to talk about. a look at treasuries and you can see yields are lower across the board. the 10-year note yield below 4.7. the odds of a december hike go down. 30 minutes into the trading session, here are movers we're watching. shares of buy now and pay later company affirm surging on reports its partnership with amazon is expanding to the retailers amazon business platform which caters to companies and small business owners. starbucks is soaring. the coffee giant crushing estimates as customers spent more and ordered more items. today's gains taking the stock

positive on the year. check out palantir, another winner, surging double digits. the company swinging to a profit and expecting a profit in the current quarter and raising its outlook for the year. making some progress there on profitability. >> very encouraging on mondelez and starbucks. >> factory orders out. rick santelli has the numbers. >> yes, robert. factory orders are september numbers, expected to be up 2.3, up 2.8. that's the best since july of 2020. as we look at ex-transportation, exactly as expected up 0.8%. and the revision of last month, up 0.1 from 1.4 to 1.5, up 0.8 is the weakst since june of this year. and if you look at durable good orders, 4.6, september final reads replaces 4.7 in the rearview mirror. that is the best since july of

2020. now if we look at ex-transportation on durable goods and also remember, that this is the final number, 0.4 becomes 0.5. pretty much as expected. so that's 0.4%. let's go to capital good orders non-defense ex-aircraft, always a proxy for capital investment up 0.5%. up 0.5%. that comps against last month, when we were up 0.6 and prior to that up 1.1, and that was the best since the end of 2021. finally if we switch gears from new orders to hip shipments minus 0.1. one thing very quickly here, if you look at factory orders and take out transportation, headline number is much stronger and gives you an idea transportation boosted the headline and some is true on

durable goods from 0.4 to up 0.4. back to you. >> rick santelli, thank you. the stronger numbers it all plays into the narrative because what we got from powell yesterday was he sounds satisfied with inflation coming down and the market is taking it with them being done raising rates. i think that's the rally and celebration yesterday and today, but left the door open if the data continues to come in hot and inflation does not keep coming down to target. >> that's my concern. 3.7% pce, it's a long way to 2% and a lot can go wrong between here and there. i was struck by how basically dovish he was. he basically let everybody know chances of another rate hike seem small, i think it's only 20% now in december. >> 20% for december. >> and cutting starting in june, although said we're not talking about that. the market believes -- the market is positioned dovishly right now and my point is it's a long way to 2%. look at these numbers here.

this rally that we're getting here in treasuries 10-year was 4.9, 4.65 now. that's a shocking move in 24 hours. this happened before powell was talking in the morning, rates started moving down. 2-year below 5 now. the s&p 4.25 this week. we've had a big rally this week in the last four days essentially. if you see all this talk about the recession coming back or not back, powell said the staff has no recession and reiterated yesterday, says we have a recession in 2024 and believes that. one reason he thinks rates are coming down. then did you see the citi call today a little bit perplexing. they have an overweight in equities and changed their equity position to overweight and by the way we think there's going to be a recession in the second quarter of 2024. it's a tactical call and this could make things difficult for stocks. tactical means it's a short-term call. we think that market could go up in the next few months, but the

recession is going to impact the stock market. you see all this confusion whether we're going to have a recession or not is sort of back on the table again. >> yeah. i mean we're not getting recessionary type numbers at this point. we got good -- >> not even close. >> but it is notable the atlanta fed everybody watches and puts out the forecast it will be revised between now and the fourth quarter numbers it's going to be a drop from the 4.9% growth we saw in the third quarter. atlanta fed says around 1% growth. i mean, there's the gdp estimates. you can see the big line down which is third quarter to fourth quarter. not recession. >> yeah. >> but after yesterday's ism came out weaker than expected they are expecting a big step down of growth, and it jives with some of the commentary we've gotten from companies. the question is, is it going to put pressure on inflation. here's one of the -- and there were a lot of good quotes from powell yesterday, one of the points where he talked about where rates go.

listen. >> we're not confident this time that we've reached such a stance or that we haven't. we're not confident that we have. that is the way we're going to be going into these future meetings is to be, you know, determining the extent of any additional further policy tightening that may be appropriate to return inflation to 2% over time. >> so -- >> asked about ending rate hikes which is central bank speak for we could go either way. >> the markets are reflecting that uncertainty. the good news is, the markets have come down notably, so the markets are cheaper. the s&p p/e ratio is lower than it was a couple months ago. yields have stabilized. all that is good news. we're in a seasonally strong period. that's good news. the bad news is, we can't figure out the geopolitical uncertainty. that's hard to parse and figure out in the stock prices. earnings estimates are coming down for the fourth quarter quicker than they normally do. that's noticeable right now.

the fed needs below trend growth. we need lower numbers and still not getting them, and the question is, how much more to de need to go down. long way to 2% from 3.7. the market is reflecting the balance of risks throughout right now. >> the next two tests apple earnings after the bell and jobs report tomorrow and if both are market friendly, if we can see the bond marketp continue to rally, not necessarily that there's a link with apple, then more people my might think this rally is for real. >> the bar is higher. 4.25% in four days. we have moved. and so the bar is a little higher for apple to beat and move up on the numbers because of the rally we've had and even for the jobs report the bar is sn higher. >> 180,000 expected. traders adding that fed is done raising rates the story of the day, and it will cut by june of next year. former federal reserve vice chair donald cohn joins us now.

do you think the fed is done? >> i'm not so sure. so i would -- bob's point about the door still being open, jay powell's comment about either we're okay or we need to raise, so i think they're still looking at the potential for raising. i agree that presumption, because of the good inflation news over the summer, because the funds rate is already pretty high, particularly compared to that inflation news, because labor market pressures have moderated some i think preet summion -- and because of the previous tightening of financial conditions, i think the presumption that fed has changed we need to raise, now prove we don't, to we're going to stay here, prove that we need to raise. but i think the door is still open in bob's words. i think they need to see below

trend growth. they need to see continued moderation of labor market pressures. they didn't really get that from the most recent jolts or even the eci numbers. kind of stable. they need to see wage growth continuing to come off and most importantly, they need to see those inflation numbers validate the good numbers they got over the summer. so i don't think the story is over yet. i agree there are, perhaps, more likely to hold than to raise. but it's really the market is really tilted in one direction quite far. >> and the fight seems to be in the long end of the curve. we've had this big rally in ten years. tlt, which is the longer term treasury bond has had tremendous inflows. people seem to be buying that aggressively. yield curve is steepening but inverted. where are we on the 10-year? that's where the battle seems to

be right now. >> and the 10-year seems to be driving the other aspects of financial conditions, so that the decline in the 10-year is encouraging the increase in equity prices. i don't know what's happened to the dollar. i assume the dollar is probably softened a little today with interest rates coming down, so that one of the things jay powell emphasized was they need to see these tighter financial conditions sustained, that are not being sustained right now, so we'll see where that goes and how that influences their outlook. >> yeah. dollar is down 0.75%. it's counter productive when he snals they're done raising rates when financial conditions are making their jobs easier and doing the work for them. >> i wonder whether he meant the signal to be taken as strongly as the market is taking it. >> maybe not. >> it's very hard.

these press conferences, he's reading some of the answers but speaking off the cuff on others, and i think he kept emphasizing they're not yet confident that they've gone far enough and i think we ought to hear that. >> i mean, i wonder if he regrets doing a press conference at every meeting? probably not. thank you very much for joining me. >> all right. >> good to see you, sara. >> you too. as we lead to break our road map for the hour, weight loss drugs helping boost numbers across the health care sector. key names to watch here. >> exclusive with the ceo of ea, that stock higher after raising guidance on strong demand. what he sees coming and when it's going to come to the consumer. >> and bitcoin hitting the highest level since may of 2022. micro strategies still buying. executive share and long-time bull michael saylor joins us to break down the rally and fresh results out of that name. big show still ahead. don't go anywhere with the dow up 250 points.

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eli lilly results strong due to its blockbuster drug mounjaro and smashed their outlook. our next guests call them leaders in the obesity space and awaiting pfizer to enter the conversation. let's talk about what happened here with lily. better than expected numbers. mounjaro sales $1.41 billion higher than expected. fair to say mounjaro is driving the stock? >> totally, bob. i think for novo nordisk and lily, this is the category the street is most interested by a large amount. you have beats for both companies on that line item this morning, and that's where i think all the focus will be going into next year too. >> wegovy, novo nordisk, double digit, wegovy sales growth, despite supply curves of course also driving that stock as well? >> they've increased guidance a number of times already throughout this year. they're beating their higher

numbers or higher internal projections getting analysts to raise numbers. beating that. so this is a beat and raise story over the near term and same with lily, mounjaro is not approved yet for obesity, funny enough. >> yeah. >> that's nice. >> we're in the top of the first i think with this thesis here and i think it's going top keep going. >> lily is up 60% this year, novo nordisk is up 50% or so on weight loss drugs. they haven't got their mounjaro family approved for obesity yet, right? when is this coming? >> that should be coming by the end of the year into early next year. that's the rough timing. that's when i think you'll see sales start to inflect. they can't make enough of the product because these are auto injectors, logistical hurdle dynamic here and beating numbers with some of these supply constraints. next year i think will be another big year. we're just starting to see the products take off. >> they both talked about this, novo and lily, the capacity

constraints, supply can't keep up with demand. how long before they can do that or they can meet demand? >> that's a really good question. it's hard to say because the demand is going to continue to increase probably than the supply. they'll probably reconcile that over the course of the next year or two, but we don't know. the holy grail is going to be what the oral pills do because all the companies are working on some solution for pills instead of injectbles. that should clear up the supply constraints. >> how big is this category going to be? >> the street said $100 billion by the end of the decade. >> we're running out of time. the ceo of lily said on our air, the brain is the last frontier of understanding biology. everybody is interested in parkinson's, als, all time zer's. how much progress is being made on these terrible diseases? >> sure. so biogen got approval for their

alzheimer's drug this year selling on the market, the uptake is fairly slow to begin with, which is expected. lily will be a player into next year with their drug. there are limitations, but we don't have anything else. they're all working on other indications as well across neurodegenerative diseases. >> lily says they have an all time zer's candidate. >> that should be on the market in 2024. >> thank you very much. >> shared holtz is mizuho's health care strategist. ceo dr wsoanewiln joins us after this break. stay with us.

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help you choose the plan that's right for you. the call is free, and there's no obligation. you know medicare won't cover all your medical costs. so, call now and see why a medicare supplement plan from a company like humana just might be the answer. shares of electronic arts moving higher a jump in profit and revenue that topped analyst estimates. steve covac joins us now with ea's ceo in a cnbc exclusive. take it away. >> hey there, sara. andrew wilson joins me. a day after reporting earnings.

solid beat on revenue and we're seeing the stock up 4.5%. thanks for joining us. >> thanks for having me and being here. >> this is great. we get a good view of the sims and football club going on. let's talk about football club. that is the key question going into this earnings. launching this new soccer game under ea 24. seems to have exceeded expectations, 14.5 million players. talk a little bit about the revenue growth opportunity you've seen making this transition from fifa to football club? >> yeah. i don't know that we lost the relationship. i think we made a conscious decision around rebranding something we can control with our partners and we want to build more into the game. we want to be able to do more beyond the game and work with more commercial partners and license partners around the world and be on a move much more

quickly with respect to the needs and motivations of our player base. we've seen the team delivered an incredible game across console, pc, mobile and free play in asia, all metrics very strong. the marketing team managed to get the new brand out in a really meaningful way, and our community have rallied around us. the early results have been positive and our expectation now as we think about this as the football fan platform for the world to entertain a billion fans we're getting started and the upside is exponential. >> seeing tons of growth in football club and across the company, gaming industry as well. big thing happening in gaming activision and microsoft finally landed the deal, 69 billion dollar acquisition. where do you stand? is ea a target for m&a? where do you see the m&a landscape in gaming post-activision? >> we feel good about the

industry. earlier this week i read an article that projected the industry would get to over $300 billion in revenue by 2030 and 4 billion players. the thing about us, the talent that we have, the world-class ip we have and the technology and the community of 700 million players well on our way to bailen or more, we're in position to benefit from that. i think microsoft-activision is a great thing. one of the largest companies will continue to invest in our industry to help us grow the industry over time, but as we think about our position, certainly it's an independent developer and publisher of the world's leading interactive entertainment content, we feel really good about our opportunity and the extent that there are opportunities for towns inquisitive we would look at those where it might add new ip or teams or add new technology or might add to our ability to grow the amount of people in our network and grow the engagement that they have in

our network. >> let's talk a little bit about the consumer. you talked about this on the call a little bit yesterday, the idea that gaming consumer might be different than your typical consumer as people are tightening their budgets. it's still an entertainment property. games aren't cheap. 60, 70, $80 a pop. con you talk about consumer spending in this industry and pockets of softness and where it's strong? >> yeah. and i think as we think about the consumer, not that gaming consumer is different than the regular consumer, gaming consumers represent much the pop place and the world's population today than ten years ago. i think what we aren't seeing is that entertainment is a fundamental human need and the amount of engagement you get in the video games for the spend you outline, extraordinary value. so what we're seeing broadly across our overall ecosystem is that gamers are choosing our form of entertainment over and above other entertainment they might have chosen in years past,

and we think that's going to con continue and grow. >> you're an entertainment and technology company. everyone is obsessed with ai. help us understand where ai kind of fits in gaming. there is a revenue growth opportunity there? does it help development of games? talk about how you at ea are utilizing ai? >> we think about it on three vectors. how do we do what we do more efficient? how do we allow our teams to do more for our gamers in a shorter period of time? making games takes a lot of time and energy now, more now than it ever does before, as gamers needs and motivations have increased and their expectations grown. the first opportunity for us is really how do we optimize what we do today? the second opportunity is, how do we expand that opportunity? how do we build bigger, deeper games? broader games, paint on bigger canvass with colors. we see that as an expansion for us.

the third is a transformation opportunity. how do we take all of these things that we have and really transform the nature of games that people play and how our players interact with those games and certainly we think about user generated content our ability to offer ai tools to the community over the course of time to help expand and augment the worlds we create crete and stories we tell, a giant opportunity for us. we think we'll be a disproportionate beneficiary of generative ai. >> thank you so much for taking the time, day after earnings. sara, bob, back to you. >> thank you. andrew wilson, the ea ceo. still to come, the fed is out of the way. important next for investors, apple earnings on deck and jobs report tomorrow morning. what's at stake for the markets and how to position your portfolio from here. that's up next. at over 13,000 us school districts, which have become top targets for ransomware attacks. but there's never been a reported ransomware attack on a chromebook. which is why thousands of schools

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welcome back. i'm silvana henao with your cnbc news update. a new wave of americans may be getting out of gaza today. nbc news obtained a new list suggesting around 370 americans are set for evacuation through the rafah border crossing into egypt. a trial to decide whether donald trump can remain on the 2024 ballot in minnesota is set to begin today, as the state supreme court considers a similar case in colorado. both lawsuits claim trump should be deemed ineligible because of his conduct leading up to january 6th and the accusations he tried to overturn the 2020 election results. and toyota is recalling nearly 1.9 million rav4 suvs in the u.s. because of a potential fire risk. the automaker says it's preparing a fix for a battery issue that could possibly start a fire when the cars make

forceful turns. guys? >> thanks very much. a nice broad-based rally this morning. major averages up more than 1% and every sector in the green. energy, consumer discretionary leading the way. investors watching apple which reports after the bell and tomorrow, we'll get the all-important jobs report. let's break it all down with edward jones, and she joins us here at post nine. thank you, mona, for being with us. >> great to be here. >> we're positioned for a potential recovery, how so? >> i think we're set up well heading into a seasonally strong november and december. we're coming off a 10% correction in the s&p 500. there's really three things we're watching. number one, the fed is out of the way and they did seem more balanced. number two, yields are coming down, so we're seeing moderation. we were at over 5% on the 10-year back to 4.64. third we're seeing an economy that perhaps is cooling going forward. we got great third quarter gdp print at 4.9%.

but the softening ahead, you know, while it may be some cooling for the economy could mean some moderation for inflation as well. >> so stocks are cheaper. yields are stabilizing. we're going to a seasonally strong period. all that makes a lot of sense. what about the higher for longer scenario? where does that fit in? sara and i were talking 3.7% on the pce, long way to 2%, and even powell said we're still not entirely sure we're done. >> yeah. jerome powell and the team has outlined they don't see 2% happening until 2026. there is a long way and the last mile could take some time. to your point on the economy, 4.9%, there is some pressure on the consumer, though, over the next one to three quarters. not only higher yields for longer, higher mortgage rates, but bank lending standards are tighter and worked down the excess savings. a consumer that is softening probably, though, to below potential growth, below trend growth of 1.5 to 2%. could the market face some volatility through that time?

yes. but as we emerge from that we think there will be a broadening of market participation, maybe not just the mega cap tech space but some of the cyclical parts, small caps and international as we recover into 2024. >> don't yields have to stay moving south or stable for this whole scenario to work? a week ago it was like when are we going to see the top? >> i think traditionally if you look historically, 10-year yields tend to peak in line with the fed funds rate or six weeks or so below the fed funds rate. if we think it's nearing a peak history tells us we should be closer to the top in the 10-year yield too. to your point when we look out the next 5 to 10 years, will we get a return to a fed zerobound and ten years at 1.5 or 2, probably not. range bound in the 3.5 to 4% 10-year yield range and does have implications for your portfolio. it probable means better balance between growth and value, and it probably means that bonds are more meaningful part of your

portfolio. they're offering better income and this potential now for price appreciation as we head towards the lower level. >> my mother loves her cds at 5%. should he she roll these over? >> it's great. we realize better yields than any time in recent history but start thinking about complementing the short duration cash instruments with the longer term bonds in the bond space and equities on the equity space. over a 30-year period cash the least performing lagging aspect. >> she loves her 1-year. the fed needs below trend growth but what does that translate? the jobs report tomorrow, 170,000 jobs expected. what does below trend mean? how below do we need to go at this point? what's going to move the market forward. would 140 be goldilocks enough, below and consistently below trend? >> yeah.

from a gdp perspective, below trend means in the 0 to 1% range on growth. for the jobs numbers, unemployment rate should creep higher towards the 4% level and the wage growth figure. 4% down from 4.2% on friday. we're hoping and the fed hoping it gets closer to 3.5% to be more in line with 2% inflation rate. we're looking for the wage gain figure to cool. that will help services and core services inflation as well. >> as far as tech as a leadership group, is that something you expect to happen? today is one of the deals ark innovation fund is up 7%. it's been a while since we've seen gains in the ark innovation fund like that. it helps roku and shopify have good numbers, but which parts of tech interest you? >> yeah. i think tech broadly looks a lot better after 12% plus krex. ai the whole space is in the early innings of a bull market. very fully valued kind of

heading into the third quarter. better valuations now across the board. we think that you barbell some of your tech ai positioning with the other parts of the market, the s&p 493 for the 12 to 18 months ahead. within tech we say areas that are not only levered to ai, but the ecosystem around evs, semiconductors, parts of the market that really will be, you know, over the next 10 years growth leaders. a lot of interesting opportunities we think. >> yeah. >> cathie wood benefitting from the lower rates in general and roku and shopify. >> and palantir. >> you're right. thank you. mona, thanks very much for joining us. as we head to break, check out shares of micro strategy up more than 200% on the year. and the company is still buying bitcoin. we'll break down quarterly results with the ceo the chairman michael saylor and talk about his bull case for crypto, his ever-lasting bull case for crypto when we come back.

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bitcoin moving higher on the heels of the fed decision, over 25% over the last month coming off the best month since january. one company getting more bullish on the digital asset buying 6600 bitcoin since the end of the second quarter is micro strategy and joining us is michael saylor along with our own morgan brennan. michael, always good to have you. so you don't think you have enough exposure? 158,000 bitcoin holdings in micro strategy and want more? >> you can never have too much bitcoin. we're big bitcoin bulls. our thesis is that bitcoin is digital property without the risks and liabilities of commercial real estate. it's a digital commodity without the risk and liabilities of gold. it's a digital tech investment without the risk and liabilities of big tech.

we're bullish. >> it's funny, people forget that you're like an enterprise software company and i notice you're doing new partnerships on ai with microsoft and i wonder if that kind of good news gets overshadowed or any kind of news about your fundamental business gets overshadowed by being a proxy for bitcoin? >> we're excited about our partnership with microsoft and ai. we're the first company to put ai into our product line, and it's -- it provides great artificial intelligence boost to our business intelligence business. we're going to use it to grow the business by acquiring new customers and it's accelerating cloud adoption within our customer base. >> yeah. michael, it's morgan. the business enables you to buy more bitcoin. the fact that we have seen bitcoin rally as strongly as it has over the past month, sec seems likely to approve a bitcoin etf after the key court loss. does the introduction of an etf

help or hurt investor appetite for micro strategies specifically? >> well, i think it's going to help. it's going to accelerate adoption and acceleratenutional awareness and education efforts of wall street to teach 99% of investors that don't know about bitcoin what it's all about. micro strategy is a differentiated offering. spot bitcoin is a great thing for investors, but we don't charge a fee. we use intelligent leverage and we can generate a tax deferred bitcoin premium for our investors. so for people that are really long term bulls on bitcoin, we represent a pretty attractive option or alternative to a spot bitcoin etf. >> sounds like you think micro strategy as a stock will command a bitcoin related premium then? >> if you're not charging a feeing and generating a premium and you're holding it over the long term one would think that

it will be valued at a premium versus the underlyingasset. >> michael, bob pisani here. bitcoin is going to be having -- a rare event. can you educate the viewer what happens when that occurs and what, if any, effect that will have on bitcoin's price? >> well, most of the natural sellers of bitcoin in the market right now are bitcoin miners and they have to sell to pay their electricity bill and capital costs and retire their debt. that's a billion worth of selling into the market. the protocol forces that to be cut in half as of about next april, late april, so you're going to see $12 billion of natural selling per year converted into $6 billion of natural selling a year. at the same time as things like spa bitcoin etfs increase the demand for bitcoin. so that's why all of us are fairly bullish over the next 12

months. demand will increase, supply will contract and this is fairly unprecedented in the history of wall street. >> just to follow-up on the bitcoin etf. can you sort of give us a sense of when you think, presumably you think the sec will be forced to approve this. can you give us a time scale on when this might happen? >> the bloomberg analyst that cover this, they're of the opinion it's highly likely to happen by early january. i think it will happen when it happens. long term, i guess the most important point to be made is, institutions are adopting bitcoin. it's highly likely it will happen, if not by first quarter of next year, at some point in the coming 12 months, and we know he the halving is coming. if you've got a 12 month in 48-month time horizon this is a pretty ideal entry point into the asset. >> michael, want to ask you

about another regulatory change. the financial accounting standards board voted to adopt a standard that will require fwoisz use fair value accounting for bitcoin and other crypto assets. this could be meaningful for micro strategy. you reported a loss tied to bitcoin in your earnings last night. i think that number has ballooned to $2 billion since you started holding bitcoin on your balance sheet, expecting more guidelines before the end of this year and an implementation in 2025. what does this mean for micro strategy? what does this mean for companies more broadly? does it make it move attractive to hold bitcoin? >> long term this is going to open the door for corporations to adopt bitcoin as a treasury asset and create shareholder asset with their balance sheets. the big dilemma is the magnificent seven companies generating the shareholder returns and 7,000 companies struggling to create shareholder

value. micro strategy's secret we're leveraging our balance sheet as well as our p and l. we have $5 billion of assets on our balance sheet and bitcoin is growing at three or four times the cost to capital. so imagine what happens if other companies are able to use their balance sheets as assets instead of liabilities right now the existing accounting favors using credit and sovereign debt, and the aftertax yield of credit isn't keeping up with cost capital and the result is, most corporations pursue diluted strategies of acquisition, slayer of buyback, dividends, which are taxable, and they can't really hold billions and billions of dollars of capital and beat the cost of capital and generate shareholder return. so this accounting allows you to mark up and down the asset, it allows you to recognize investor gains. you know, at berkshire hathaway

didn't have apple it wouldn't be a winning stock, but it's not practical for a thousand companies to hold apple stock as a treasury reserve asset. it is practical to start buying bitcoin and fasby's accounting opens the door for that. >> i know you're not a stranger to some of the bitcoin criticisms, but michael, even lately we're seeing sam bankman-fried on trial for fraud, of course. you're seeing israel cracking down on some bi buynance accoun related to hamas. there are dark and bad application of this crypto currency and i wonder if you thinkenutional investors are done, as a method for terrorist financing or fraud? >> i think that the liabilities are the early crypto cowboys, the crypto tokens that are unregistered security, unreliable crypto custodians. for the industry to move to the next level we need to migrate to

adult supervision. we need big banksto become the crypto custodians. we need wall street to take a role. we need to rationalize away from the hundred thousand crypto tokens, yo-yo coins people are pla nip lating to bitcoin. bitcoin is an asset without an issue. it is the one universally recognized protocol commodity in the space. when banks on waull street are managing the boins and takes its eyes away from the tokes than have demolished shareholder value the industry moves to the next level. >> michael saylor, thanks for coming on to talk about it. >> thanks for having me. >> thank you, morgan, for joining as well. >> thanks for having me. >> ferrari shares are revving higher on the year and on the

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welcome back. ferrari raising guidance after a huge profit jump in the quarter and shares are riding higher on the news. robert frank has been following the action and going deeper into the numbers. >> those shares up 4% today. ferrari's market cap at $60 billion, that's 50% higher than ford or gm. sales up 20%. deliveries were up only 9%. the real profit engine for ferrari are these limited edition cars. that's the seven-figure special cars. and customization. that's where customers can choose their own paint colors and fabrics, all of that helping to give those profit margins of over 26% for ferrari. what investors liked about this investor call and the guidance was that 2023 guidance. ferrari raising both sales and

profit guidance for 2023. ceo saying on the call, quote, the order book remains at the highest level across all geographies and across all models covering the entire 2025. that means ferrari has sold out for at least the next two years. interestingly, hybrid cars outsold combustion engines for the first time ever at ferrari, saying they actually have a prototype for the first all-ev ferrari launched at the end of 2025. as far as racing, sara, saying clearly, quote, we need to keep improving. the business of racing for ferrari grown very strong. revenue in that segment up more than 10%. guys? >> they're number three. they're getting beat by mercedes and red bull in formula one. maybe good earnings but not necessarily translating to performance on the track. >> we'll see if they get better in vegas than mexico city.

they get the pole position but can't keep the race. >> three-year wait list, tons of customization. it's a wealth story. >> they ask why is porsche not doing well? what did aston martin cut guidance? you say our customers are wealthier and they're just immune to a lot of these cycles. also ferrari is such a unique brand. >> is it also they're holding back supply? don't they play that game, too, robert where they make it so exclusive that you can't get them? >> the problem is they don't have any more cars to sell for at least the next two years. and that's going to be the issue. they just can't make any more. they're sold out. they have no more product. so, the question from analysts was, what are you going to do what you don't have any more cars to sell? >> well, high class problem. >> we should have this problem. >> thank you very much. speaking of the ferrari

team, i've been working on this documentary, "inside track: the business of formula 1." it really does get into the economics of a team like ferrari. you see all those sponsors. >> you got amazing access. >> got amazing access to all of the teams, and liberty which bought formula 1 and turned around the business. >> i didn't know you were so into formula 1 racing. but your kids are really into it. >> that's how i got into it. my 5-year-old and 4-year-old are obsessed with formula 1. they know every driver, every track. >> there's a cult following around formula 1. >> i'm most excited for you to see it who doesn't know as much -- >> i like to learn more about sara. >> as you can see, i was on the front lines. >> we only have 40 seconds. apple and jobs, that's what matters right now. >> apple after the bell. jobs report tomorrow. about 180,000 is the expectation

on jobs. for now it's a pretty broadbased rally. >> can apple return to growth? we had four consecutive quarters of revenue decline? >> there's been a lot of negativity since the last quarter. worries about china and demand for iphone 15. 2% update so ar. thank you, my friend, for being here for the hour. bob pisani. more "squawk on the street" when we come back. health insurance. it's often hard to know which way to go. it's nice to have options, but too many can be confusing. for instance, if you have medicare, you may be able to get a plan with extra benefits if you know where to look. a licensed humana sales agent can help show you the way. take humana's medicare advantage prescription drug plans. these are convenient, all-in-one plans that

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good thursday morning. i'm sara eisen with dom chu. emg capital founder eric jackson on tech earnings ahead of apple. why he's bullish on names like shopify. >> a deep dive into results come up as well. an earnings exclusive with kristen peck as pet ownership and sales surge in the u.s. let's take a look at the markets as falling interest rates give a boost to those equities. the dow is up by 407 points. north of 1.25% gains. the s&p 500 up 1.5%. 4303 the last trade there. the nasdaq