55, and nasdaq has turned positive, up by 25 points. the ten-year, maybe the thing driving this, you'll see the ten-year yield is slightly lower, 4.6%. two-year, 4.93. folks that does it for us today. make sure you join us back here tomorrow. we'll see you then right now, it's time for "squawk on the street." ♪ good tuesday morning, welcome to "squawk on the street," i'm carl edwards with david faber on the stock exchange. the consolidation continues with balance futures mostly red, even with yields mostly lower. seven fed speakers today, oil below 80 to a two-month low. the rally pause, s&p poised for a lower open after a six-way win streak. >> and d.r. horton delivers an earnings beat with an upbeat forecast. betting the housing demand will

continue despite the higher mortgage rates. >> yeah. and well, fed expectations, what would a morning be without them, goolsbee telling cnbc, there's still a markets to be good and avoid recession. >> look, i think these guys are trying to position themselves very much in the camp of, hey, if it gets better, if we start getting some, you know, continual numbers we're in good shape. i look back to time period. we're in november, we're earnings -- earnings in retrospect are not as dandy as we thought. magnificent seven can carry us through. i know this is too granular, i see you cash carry and a raise

you david. when you have interest rates down, people salivate for these high multiple stocks. in a quarter, that inspires snowflake. and that inspires and then meta to move out higher. if anyone even for a second disputes this, go back to business school or -- whatever. that's what happened, david, we are in a market where there are just herd animals who want so much to buy enterprise soft warmer. and then see enterprise software -- i had data breaks last night. $43 billion valuation. probably worth 70 billion. it's cloud, artificial intelligence, the lead invest, yes, you're right, nvidia. i say to myself, okay, we're back. we're back to the companies again, like the companies that led us because we had three good

days in the bond market. >> we also came off a reasonably good earnings period, too. >> yeah. >> especially those companies that connected to that, other than alphabet. >> right, alphabet, there are real questions with what happened to their cloud which were completely unanswered like why did they have a stepdown -- i'm going to tell you the answer -- azure and amazon web services. to use their verb, they pantsed them. >> you just think it's a battle for market share and they beat them? >> yeah. sometimes, it happens. >> sometimes, the simplest explanation is the correct one. >> yep, that's what happened. but alphabet is going up, because people realize despite what they haven't seen that i know is that youtube is doing incredibly well. disney -- why not bring up disney.

>> sure. >> warner brothers, you know, these are companies that should be looking back and saying alphabet didn't even know how well youtube is doing with the in envelope. you can imagine spending like billions and not even know? >> right. and they were jammed. >> was an interesting question, not even question, concept of the disneys, the warner brothers, discoveries, peacocks, they're not competing against each other. >> no, they're not. >> they're competing against amazon and netflix not anywhere near that but these others are with a limited capacity should they choose to create content. >> right, i mean, we have two classes of companies, carl. we have these companies that have unlimited amount of cash, they have eyeballs and have done things incredibly right. by the way, look at apple, turns

out the service is really great. and then we have these old medial companies -- i tv show put out by apple, but we have what i call legacy media companies that are struggling. and they're praying that alphabet doesn't figure out how well youtube is doing in football. but where they went wrong that jassy sees how well amazon is doing. and jassy runs that company, it's a dictatorship which the ceo plays a role but it's a benign dictatorship. and they get it to you. i look at my bills, who can get away with doubling their bill, prime, apple. who would not -- my cable company. and neutral on apple, app store up in china. again in november. >> clat the beginning of the

quarter, we were told that the chinese government couldn't buy apple and it turns out that apple took a share. talking to tim cook, what did they make up with this time? there are people -- apple pre-fires them. i think apple's about to have the next leg up. and i still think that the vision pro, people don't realize it's a b2b situation, there are companies that are going to use it. yesterday, my wife goes like this to me. i'm talking, tomalking, blather- she went like this to me -- >> what's that? >> that means shut up. tim cook said you can change -- >> can i try it? all right. that's the only time. >> don't tell the booth. they'll be doing it, too. >> right. >> i know. >> that's all it takes, all these years and all i have to do is this? >> oh, we've got to unwind. >> jim, when it comes to china

and apple, 19%, obviously very important, you can believe anything you hear during the conversation of a quarter? >> no, you can't. and the reason why you can't is because the chinese are so opaque. but so we know this. what matters is the superfast fashion. have you noticed this, fast fashion companies -- >> what, are you talking sheehan again? >> yes. >> on a mission to publicize the private company that somehow we have on air all the time? >> what i can tell about sheehan is you wear this stuff for breakfast and then throw it away. >> like disposable? >> you believe that's the case -- apparently that might be. >> have we talked about how tiktok has infected the world? >> sure. do you want to spend time on that? i'm happily to. >> also an enormous amount of ad dollars. >> and back to that. >> i'm going to wish --

>> incredible. >> -- hurry back, here he go, hurry back. >> a private company with an enormous market value -- not market value, but enormous valuation. >> sheehan, bytedance. >> we sit here and talk about how to hold back the most recent chips. >> yeah. >> of nvidia. >> yeah. >> in the meantime, carl, we accept anything they throw at us. literally, we're old manchurian candidates, great book, great movie. the china will argue anything they want. we're completely oblivious, because we tend to be if you're in government, you got to be an octogenarian, you're either in senior living or in the government. and the government doesn't seem to know what's happening. >> if we were to ban tiktok, do you think it would solve a lot of those issues? >> only in someone who had --

look, our republicans, just how quickly soderberg gets better in the acl, he's american. he's american. >> he is american. >> he's an american original. and he's like -- i mean, it's kind of weird because at one point, he was considered to be a cancer to the republic. and now he's like please save us from chinese forces that are taking our youth away from us. >> he and daniel jones can rehab together. yeah, that was a mistake. one more year. >> but i really think people watchin in washington are oblivious. oracle is not. >> and he's ostensibly going to do a few things here in a few weeks. >> all i know, are you being brainwashed, no one seemed to care. and our government seems to be oblivious.

now, our government should say, let's ban tiktok -- by the way, i'm not even joking about this. i mean, tiktok's really powerful. >> well, they are still on the state level, montana, for example. >> montana -- >> yeah. >> no, how is montana with president roosevelt, i stand on the wrong side of the history -- well, going back a little. >> these platforms have a lot of power, there's no doubt. >> they do, with our youth. >> oh, yeah. >> today is the ten-year anniversary of twitter going public on this floor. >> lindab yakereno. she's actually trying to get ads. >> yes, she is. >> i come in here, 3:30, trying to do homework, it's useless, my homework is uniformsseless agai

propaganda and lies. we're supposed to buy clothes and throw them away in the afternoon. everything is bad, at axis would be -- where's reagan, the axis of evil. i'm actually talking about this stuff. i can't believe i'm talking about this. >> you're concerned. >> yeah, that's probably it, i'm concerned. i can't get my kids to -- >> where's that, apple -- >> apple goes higher? >> why do you disagree with me on that? >> they've been wrong so far. i say, own apple, don't trade it since five. >> it hasn't grown in a year, right? >> it has grown. david, if you look at the countries, there now, the country is about a billion people, only two stores in india. >> payment from alphabet, that is in jeopardy, the search

payment every year, because of antitrust? >> that's not going to change, what are you going duck-duck/soup-soup, come on. >> this is a hangover from the trump justice administration. the trump justice administration. it's kind of like -- hail fromdonia, david. they're electing people from prison in pracedonia elections, right from prison. when we come back, we talk auto, a new car sail, talking about prices coming down and reining demand. we'll get to david doc and uber,

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august and september, they ticked a little higher, all segment prices whether you're talking trucks, suvs, sedans what sedans are still out there, all of the prices dropped for the month. and used car demand overall, what they're seeing is a slowdown, not a huge one, but a slowdown in demand, we typically see that in late september, early october. things adjust a little bit and move a little higher in october and november. don't be surprised if we see a little firming of prices. overall, you can look at this report, as you take a look tell auto dealer stocks, you can say, we're getting a more normalized market. the uptick in prices in august and september, a lot of people thought we would see a dropoff in production because of the uaw strike, people said i'm not buying new, i'm buying used. we still had plenty of new vehicles out there so that's a giveback that we're seeing in

october. >> phil, the journal with this piece with something we've been talking about for a while, ev makers turning to discounts and incentives to combat what they're calling waning demand? >> yeah. i think what we're seeing the red hot demand there in evs that's gone. we're just not seeing that anymore. ev sales are still growing. don't mistake this for people turning their back completely and not buying evs. it's just that the autoworkers have to work harder. there are more models of electric vehicle introduced out on the market. in the past, you might have had four or five competitors if you're an automaker and offered a tick particular model. not the case anymore. it's a lot more difficult to break through for somebody buying a vehicle. >> they're saying these things are too hard to repair these evs

and it's hurt and depreciating. i thought they weren't supposed to be depreciating, and second, they're easy to fix. who's right? >> well, they have a lot of test, one of the big knocks on tesla has been and continues to be, when there are issues, and when they need repairs, how do you get them repaired? tesla doesn't have a dealer network. yes, they have service centers, if you want to call them that, sprinkled across the country and they continue to add more. but it's not the same as having the ford dealer network or the gm dealer network. any of the traditional a automakers and that's what hurts it to the extent, with the issue, okay, we've got to get it fixed and it's not like you ask turn to the dealer down the road and say fix this, please. >> phil, back to the larger issue, again, we understand there's still growth and perhaps waning demand to some respect.

to what to we attribute it, prices becoming closer to i.c.e. and ev. is it because people don't want the lack of capability of charging stations? i don't know, i'm curious. what do you see as the gaining issue here? >> david, i think you hit on a couple of important points there. one being the early adopters not that they're gone, but you're now getting into lower mainstream growth. people who might have two cars and might say, okay, is it time to go electric with this. that's more of where we are, as opposed to people are my next car is electric. i'm doing it. and the other issue you bring up is the charging. i've talked to a number of people who are like, yeah, if i've got two cars, i'm happy going electric. but i wouldn't go electric with one car because i have to drive long distances. finally, david, the pricing still remains,overall in that

above $50,000 range. it's not like you can say, i want an ev for under 50,000. are there some still out there? yes, put that's where the discounting comes in. you can say, look, we can make this on a level. apples to apples, we can bring this closer together. >> finally, phil, jonas has a note out where tesla needs to avoid a bit lower in the stock. basically they need to move away from core auto either into new markets or a.i.? >> i think a.i. is probably the more interesting option that they have there. and in terms of new markets, yes, we've heard them talk about licensing, in terms of licensing their autonomous vehicle technology to some of the smaller, internal combustion vehicle companies. i'm not sure how much that is going to move the needle. jonas brought up a good point in

there, cybertruck, look, it's not huge numbers and nobody is expecting huge numbers but have a clean launch. a clean launch. that is critical. whether it's a small number, as long as it's clean. you can't have one of these things where you launch it november 30th and everybody says where is it in the middle of 2024. you've got to show there's nice steady progression. that's going to be the challenge. >> phil, that's a lot covered just now, we'll talk to you a bit, phil lebeau this morning on autos. we'll get cramer on futures again looking pretty strong on the nasdaq. s&p has corevered a little bit here. definitely off the session lows. more "squawk on the street" when we return. with voya, considering all your financial choices together can help you make smarter decisions. voya. well planned. well invested. well protected.

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jim mentioned data dog earlier on, open be up 25% for the quarter and fiscal year. up 25. followed by global foundries, a bunch of sales beats including planet fitness and trip. we'll get to the opening bell in just a few minutes. listen to and follow "squawk on the street" opening podcast. eve♪ i can't believe this is really happening. ♪ you're all i ever needed ♪ looks like your band days aren't behind you. grrr.

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>> all right. three minutes to get to an opening bell here as we've seen as carl pointed, futures have turned decidedly, it was quite negative as we began the morning. let's get to our mad dash. we want to talk home depot. >> it's one of the greatest companies ever, 18 times earnings. a note comes out when they report on the 4th, indicating there will be a shortfall. we've got a price cut from chelsey advisory, price cut from

citi, price cut from barclays, david, you're not post to initiate a home depot buy. >> this violates the orthodoxy. i know we got a sona downgrade. a lot of chatter, hearing from wharton. basically -- look, there's not a lot of change in the housing market. you need to have turnover in order to be able to redo, rebuild and refurbish, anyway, they're out, you focused on the chart. >> does this state of let's call it less than positive analysis give you pause? >> let's get closer, if i say it gives me pause and the stock goes 2.80. they have a theft problem, we know that? >> they have one as well. >> they have a terrible theft problem, maybe one of the worst.

this is certainly not enterprise software, to go back to datadog, with security. they have another hack in vegas. >> yeah. >> i mean, it's really getting them. the choices made by caesars versus mgm in terms of dealing with them, not the hackers, paying ransom, it's very interesting. >> i said this one company that was hit, what would happen if the government said if you paid ransom you go to jail, uniformly, no one could pay ransom. and the person was not even willing to contemplate that. >> i'm sure that would be possible but -- >> no. but foreign practices, we ban certain things, people never thought would come to light. so, we'll play that, i mean, carl, it's a situation, today is enterprise software. you just posted an interesting

note about the nasdaq. no one is even noticing it, but it's a bull market. it's more of a planet fitness market than a home depot market. planet fitness, who knew if you had no ceo you could do this. >> opening bell now. now the big board. celebrating the annual year, g glamour doing the honors. the largest win streak in two years. >> well, i think that again, paulson, he's negative-in-chief, can you avoid the nasdaq which is so powerful, i bring you to

nvidia, a company pushing, transferring very hard in the cloud. maybe oracle becomes more of an important factor in the cloud than indeed google services. >> we mentioned uber earlier today, ten cents does miss 12. revenue shy, up 11. pretty good guidance on gross bookings, jim? >> yeah, it's down a dollar, it shouldn't be. i liked everything on the call. sometimes, you get a missed reaction and this is probably going to be dismissed because it was good. i mean, it was perfect -- nothing is perfect, but it's good. i think what happened, doordash had a good quarter, went down, airbnb had a good quarter and keeps going down. there's an era of these companies that went public at the same time, people are trying to stay away from them. david, doordash had an amazing quarter, goes up and goes down.

airbnb, you guys had peter kernen on yesterday. that is a great story. >> trip, this more. 10% premarket. >> the death of it was greatly exaggerated. i think, david, people are traveling, still recognize they have to change the way they lead their lives. they're still staying home to work. and i still see carson real estate not doing well. >> that will continue for quite some time. >> yes. >> the hope is it's a slow-moving train and real estate is something to be handled over time. >> even if you have a successful building, you're facing pressures from higher rates so you have to advance. your equity rates are going down potentially. >> real estate is fixed rate right now. it's continued concerns. jim, i'd like to come back to, you mentioned datadog a couple

of times but we really haven't done the numbers. >> right. >> let's talk about datadog and why snowflake is a beneficiary as well. >> snowflake really should -- >> datadog -- snowflake up 8%. they beat obviously. >> that and mongodb. they're very good companies. all people wanted to see a reset which the stock has gone down a great deal. but people still need to analyze data in the cloud. the analyzed data in the cloud, rent the cloud, snowflake is also danvers. what happens, david, do we still care about enterprise software that analyzes data? if we do, we can care about companies like adobe, salesforce, to service now and snowflake. it's kind of like the hip is connected to the knee bone --

>> but it's directly related. >> you rent the cloud and you analyze with these guy us. we've got anything cloud that's going up. we still got this residual tesla move which people aren't talking about even though you throw stuff at tesla it keeps on going higher. we've got a move in cyber security that has staying security. watch palo alto to stay up. but it's a move out of, say, the great -- the great metal vendors, we're seeing a move out of c and h which is surprising and a move into cloud. and shrocloud -- dozens of comps came cloud this and that, and they're all moving. i don't know, carl, they're all moving. >> i know you've been watching the chips. there is commentary. the guide is better, do you go along with that? >> i thought spi, given the fact

that their auto was shocking. the internet and those things, those guys don't miss. that was a terrific quarter. again, we have a reset, texas and internet and things and auto. nsp has clearly got a better handle on things getting into more auto. that's a remarkable company, they also do mobile and communications. that was a big one and will help a lot of the semis. all of these companies are just waiting to go higher. david, servicenow, i know we may think servicenow is kind of ethereal in what they provide -- they're winning. every time i say their winning, the stock goes higher. >> how much of is he a benefactor, he were talking snowflake and how much related to a.i. -- by the way, i don't

think snowflake has as much a.i. as people think. >> you don't? >> no. >> okay. providing a tailwind. g gpt with a turbo, now you can get it. snap provides context up to april of '23. you there go, you wouldn't have been able to -- previously, you only could get answers as of the end of -- basically, january 2022. end of 2021. >> you're talking about gpt being smarter? >> yes. >> a friend of mine, frank wright who is the coach of the panthers, his daughter who used to be at google, now a company calling clonables. designed to give machines the decision-making power of human

experts. not just human humdrums. not just same old stuff, i'm talking about experts. i'll tell you, she's so smart. >> frank wright is a great coach who is a great player. >> yes, i didn't realize you guys were friends. i could see the connection. >> i should have known. >> because we coached -- >> which does a.i. start drawing up plays? >> i don't know. but i'll tell you, there's a lot of teams that could use a.i. plays. there are some teams that can't score. there's some teams that need a quarterback. >> you could draw up the best play but if you can't execute it doesn't matter, does it? >> no, it doesn't. if you have the clonable, and gpt, when you look at it facebook, amazon, netflix, google.

that's not what will i want. >> carl, let's talk emerson, do you look at emr? >> no i'm shocked, just keeps screwing up. >> stocks of emerson is down. zb >> it's unbelievable. they just miss, miss, miss. >> and a buck 22 is what i've got here. >> i just keep thinking it can't be this bad. >> yeah. >> can't be. >> adjusted -- just not what obviously investors had been looking for, revenue up 5%. missed analyst estimates a bit as well. expected adjusted earnings to a 1.05 a share. >> no, we saw this very high. >> i'm just looking at a piece of it. >> basically guidance not great. >> no. and carson buyout there. we saw some higher and still

stuck with -- it's supposed to be like a software company for the grid. and right now, it's nothing. that abcquisition that was hostile. >> yeah. >> ill advised. this was a great american company. >> really, was -- you're giving it a was a great american company? >> yeah. >> at one point it held the record for the longest streak of beats. >> david farr a lot of people thought was too statesman-like. i think david farr worked well. and. >> and d.e. shaw came after them at one point. >> well, we need an activist right now. >> wouw you're already calling for an activist. >> it's just such a mess.

they went hostile. david, i don't think there's room for any hostile deals anymore. that's silly. what do you say, they're doing great and time to load the truck up, the turnip truck? >> they're calling for 5.55 a share. >> that's not bad. i had it down 4 in my book -- i mean, i didn't think it would be down 8. then again, i thought the jets were going to do better against the chargers. what do i know? the nfl is more vigorous and the people at emr. you mentioned the worst performers, oil two-month low, gasoline, lows of the year. >> yeah, cotera was up.

let's consider the food market. when you think about the used car market, which was again something very inflated. that's clearly coming down. we heard that from phil lebeau. when you think about oil and gas, they were big parts of what was inflation so that's coming down. so, i ask you how can you stay as bearish about what inflation is doing in the country in light of the fact that all of those, let me throw in represents which are coming down -- >> on the wire this morning about rent, deflation in austin, and boise because of new apartments? >> all you have to do is look around here in new york at the unrented apartments. go to the gowanus canal also known as venice. >> i'm not sure you're looking in the right places there, jim. >> we're like 99%. there is not a lot of available in new york city right now. >> if you go to the gowanus

canal which i know you don't know, it's got blue bubbles. >> i know the gowanus. used to play stick ball. >> okay. there are apartments being put up, gowanus, rentals. >> it's going to be beautiful. they're going to have gond da h gondolaeers. >> and brooklyn is the fastest growing city. >> i'm sure those are high-end rentals as well, jim. i don't think it has anything to do with what's going on in new york city. >> it's coming. rental is coming down. >> so when goolsbee this morning says we might be looking at the fastest drop in inflation year on year ever -- >> i've always been upbeat with goolsbee. goolsbee comes on tv a lot which usually means you're probably a

hack but that's not the case with him. he's like a serious practitioner. when goolsbee comes on, i say, you know, he does a lot of home. he does more homework than the nfl. you like that? >> i do. you were very upset with emerson, you weren't even going to bring them up you were so upset with them. >> david, let me say they're short sighted, they're ill advised and but up optimal results. other than that, it's blue sky -- i was going to a green is sky. how is goldman doing? >> goldman is fine. they're under pressure from the capital rules. i don't know if you saw the interesting journal story about synthetic. basically, they're buying 10% of their risk to take less capital against certain loans. >> it's not easy to be a big bank in some ways. >> i mean, many will argue with

that statement. >> you got to be careful, david. >> i know, i know. >> you're starting on that trend rich people deserve a little bit of a break in this country. >> i know. >> the end game is not ending that well for them. >> well, you just got big bonuses at goldman if you're a hitter. did you see that? >> no, i didn't. big bonuses? >> yeah, they're trying to send people. >> to do what? >> to make more money. that's what they do at these places, when you work there, they emphasize making money as part of the esprit. amazon moving up. i'm telling you. >> it's all about that today, jim. no doubt. we mentioned media earlier today, we're watching the sag-aftra talks they had tweets last night, we actually had sound from ted sanderson from netflix. >> we're at the table all day. we're in the business of telling stories that's what we want to

do every day. it's grinding to a halt for a few months, we're going to try to try our best to get things back up and running and back for our fans as well. >> i think they're all tired of having small talk. they've been locked in a room for so long. >> right. >> shawn fain was running rings around these guys, shawn fain of the uaw. >> no, now they made it final. there's not much negotiating room on the part of studios. >> and you think, they're going to get this done, there's no -- >> no i think if they don't get this done this week, what i'm hearing it's going to be a while again. then you're going to talk about '24 being truly impacted. you're not going to resume likely negotiations for some period of time because these

guys can't spend six hours a day in a room. they've got other things going on. >> what do they have? >> yeah. thanks. >> they've got their business to worry about. >> activist investors. >> you got to worry -- who knows, a million things, you can't spend six hours a day. >> should david zasoff be concerned about the strike? >> they're all concerned about the strike. >> okay, agree to something. >> thanks, jim for that insight. when you're in the oil, you give them 25%, you make it so they don't have to work that hard, otherwise, you don't give away anything. >> a couple notes out of wales, on disney, organizing because johnston is so new now, you might not expect big changes or guidance? >> i think that's right, disney, we want a little more

transparency. you know what we want, a datadog for disney. we want a datadog. god, i hate my accent so much, jesus, get rid of it. this week, i thought at the game, these people all talk awful. >> how about your planet fitness, jim? i know you've been constructive on it. >> i was. i think what people don't realize, this is going to be repertory, david, not to you, carl, because you're a current trend of data, when you take these weight loss and things you have to work out otherwise, you atrophy and wither way. i thought lifetime fitness handled my interview with them very poorly. all they had to do is say every doctor says if you take these drugs you must work out more. no, they talked about sales. you don't talk that, you talk

about push-ups. >> historically, it goes to 2500. >> it was a good quarter. >> i think the stock was down a lot because they have one of those disappearing ceos. it's like, who is the ceo? you are. kind of like when you go upriver in "apocalypse now." >> those are all great scenes. all are great. deeper and deeper up there in they finally find brando somewhere in his cave. a blue bus, jim morrison in the end, you know -- >> yeah. >> duvall -- >> yeah. >> no, he was the consigliere of the u.s. air force. >> give me a second. i'm getting hold. >> rewind you, rewind you back to like 1942. take a look at the market here. >> oh, good tequila. nasdaq trying to hold on to

gains, down 50 or so. pretty much tech, the only sectors green at the moment. vix almost below 15. this thursday, join cnbc's "your money" virtual event, you'll hear from cramer, ways to maximize amidst record high inflation and to kind of mitigate rick while investing for a bright future. you can scan the qr code. seven fed speakers, this morning, we'll get waller and logan for the afternoon. the ten-year, about 4.6.

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that time of year again. liberty media day coming up and that means one on one with john

malone. the 82-year-old gentleman still at the head of a lot of companies, certainly has his head in the game completely. everybody loves to hear what he has to say. thoughts on media, cable, wireless and so many other topics and talking with greg mcfay, chris wintry. we have a full set of great guests on thursday. don't miss it.

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zoo raze get -- let's get to jim and stop trading. >> untalked about, they weren't able to pass through energy costs. the stock is down big. lynndie, lind, was able to pass through energy and lind is doing much better than air products, winner take all, loser take none i guess. the gas has historically been a secular growth but air products proving not to be the case. very bad quarter. >> what do you have tonight? >> well, you know, i -- there's a couple companies i'm really struggling on and one is, i don't understand why the defense companies aren't doing like making fortunes given the fact that we have two wars in the world. i think they're doing everything they can. i have james on front lockheed

martin and he's an excellent exec and why our country got away from the military industrial complex. we went so far away that i think all we do is make stuff that can't be used in a ground war. what heck? how did that happen? >> fiscal stress. >> fiscal stress. >> we spend $900 billion, what happened? >> we are guns and margarine, my friend. >> weren't spending it on the right things? >> no. we're short, we don't have enough money to do everything. we can't spend money on -- we spend money paying the interest but don't have enough money to pay for discretionary and enough money to buy the right weapons. >> not to mention social security and medicare. >> yeah. >> we're a little strapped. >> are you talking about the downfall of the republic? >> we're a little strapped right now. >> we'll refile later. >> we don't have enough money for anything, least of all the stuff we need to do to help our allies. >> we'll see you tonight. "mad money" at 6:00 p.m. eastern

time. we're trying to get back to the flat line, s bef gen&prilyre. don't go away.

. good tuesday morning. welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla and david faber, live for you as always from post nine of the new york stock exchange. take a look at stocks here in the early action. we have gone positive on the dow. up 3 points. the s&p also unchanged, seeing strength from last week can continue. the nasdaq going strong as tech out performance up half a percent. number of sectors on the move as well. to point out. information technology has been strong. this comes after a more than 6% gain for the nasdaq last week. just want to show you the action here. there's the dow, positive and negative, and treasuries as well, firmer yields in the last hour or so. bond rally is back on this morning. the 30-year yield 4.75. we get a refunding 10-year auction everybody is looking for for signs of demand. 30 minutes into the trading session, three movers we're watching, data dog shares are

surging after the strong results from the software company. revenue up 25% from last year. guidance also beating estimates. international flavors and fragrances moving higher topping revenue expectations thanks higher pricing for food ingredients and fragrances and falling raw material costs and the company confirming it will work with activist investor carl icahn agreeing to renominate one director to the board. uber is in the green and up nicely on the year. revenue comes in light but the company did see a surge in gross bookings up 21% from last year. we're going to break things down with one analyst forecasting more gains ahead later this hour. guys, it's not as important of a macro week as we saw last week with all the data. this is one i wanted to highlight because there is anticipation going in and only get it quarterly, the senior loan officer survey, came in, people were looking at this to see since the regional bank crisis, we were worried about a credit crunch the tightening.

as you can see, this is just a look at commercial and industrial loans, so banks loaning tout other business in the economy, conditions are tight. and they have been tightening as you can see. we're near recession levels the last big spike up there, the covid recession. he demand for loans also continues to move lower. but the pace of tightening slowed down a little bit. so what does this do to the soft landing narrative? i don't think it destroys it, but it is something to be cautious about and the fed is cautious about it as well. credit conditions in our economy remain tight and tightening. >> yeah. it's hard to lend at a real spread, particularly when you're watching your bond portfolios lose value and you have to hold more capital potentially. it doesn't make things easy. >> if you're in commercial real estate even tighter loans. >> commercial real estate you're not making new loans at all for the most part. you're trying to hold on and hope you're not getting the keys

back on what you got. >> and we've seen the demand for loans fall from commercial real estate and from other businesses, small and large as well. you have that with some of the commentary that we're getting out of companies and ceos. i highlighted the trip adviser one because strong demand in travel and services from the ceo there, we see resilient and durable flafl our data driven by the enduring trend of consumers prioritizing travel and experiences over other discretionary spend. not much of a slowdown in that part of the economy from tanger ceo, the outlet company, so kind of gives a good read on where consumers are spending within the value chain here. on the trends, while discretionary categories were more challenged, the athletic and athleisure categories saw continued against. new retailers in categories entering our channel as we diversify our tenant mix including the health and beauty category, restaurant, home stores and more experience

brands. gives you a sense of where consumers are spending and not and discretionary tons remain challenged i think is the highlight there. >> we were talking about the initiation of home depot and lowe's in the last hour out of rbc. jim saying how rare it is to get a new initiation of sector perform, part about rates, part inflation, a big part from the shift of goods to services, things like travel. >> right. so the question is where does that leave us on inflation? is it enough for the fed? should you still be worried about inflation and the services sector of the economy? we did hear from austan goolsbee chicago fed president a voter this year very dovish on "squawk box" and here's what he's saying about inflation. >> we made a lot of progress and i think anybody who is saying that we're stalling out on inflation or it hasn't been enough would do well to remember this that we're among the fastest falling inflation rate years in the last century.

that's a pretty good -- that's a path that looks good. it's not done yet. the inflation rate is still above where the target is. i'm hammering that's what we should be watching. the priority should not be on gdp growth and job growth. it should be on inflation. >> even with he we've done a lot on inflation signalling they don't want to do a lot more, is recognizing inflation is still above target and there's potentially more work to do in the higher for longer methodology of the fed keeping rates as high as they can. the market thinks we'll get a cut in june. is that too early? that's what we'll parse through the data in the coming weeks the story. we moved from july to june after the jobs report weak on friday. >> right. >> that's progress.

weaker data is progress. >> would that not then be considered higher for longer? >> it would be higher for less longer. >> higher for less longer, wouldn't be higher until the fourth quarter until 2025. i think it's higher for longer as long as it takes until there's more signs inflation is moving back to the fed's target of 2% and we're still 3.7% on core cpi. it's not there yet. just in terms of the mood of america around all of this, david, we have the great new poll called a generation lab poll we did with cnbc where we measured the opinions of more than 1,000 young people, 18 to 34-year-olds on the economy, we're doing it a year before the election here just to get a sense. two stood out to me. one to your call, to what you said about home ownership, 86% don't own a home, a lot of pent up demand there if mortgage rates can fall. another one i picked out, which two candidates would be the best for the u.s. economy. what do you think young people

think? >> i'm looking at the results here, so i know the answer. >> the highest numbers to donald trump and michelle obama at 37% and 42%. so we asked for two, they don't add up to 100%, but joe biden only coming in with 25%, same as kamala harris. and robert kennedy jr. might do better with the economy than ron desantis according to the young people in america. that's where we are. >> you know, it comes up a lot with me, i know it does with you as well, continued, even though treasury rates are down in the 10-year at this point the fiscal situation, concern about deficits is not going away. to that all is well. any of these candidates, if they were to be president work have to -- is going to have to deal with significantly deteriorating situation. >> if the economy is deteriorating they have to deal with a situation they can't go to the playbook and stimulate and pump money into the economy because we have this increasingly dire fiscal situation that did not get fixed during a time of full

employment. >> right. >> and strong gdp growth. yeah. that's a problem. but the market is not screaming anymore about deficits. we're down to 4.6 on the 10-year. at 5% it was more worrisome, but that lower refunding announcement certainly helped. i'm going to be watching the auction, i3 year today and 10 year tomorrow. >> the street's take on the fed's comments and outlook from the economy. jpmorgan chief u.s. economist is with us on this tuesday, mike, great to see you again. >> good to see you. >> i loved the title of your report coming out called "just what the doctor ordered." you say at the end of the day the data will call the shots and the data say we are done with rate hikes and happy wait 1.5 number for q4. talk about where we are at this moment. >> i think the economy is slowing. i think the gdp numbers are -- have been choppy in this cycle and i think if you look at the

payroll growth numbers and hours worked numbers that tells a more -- gives you a more faithful representation of the economy which is that we are gradually slowing as we get towards the end of the year. we think we maintain positive growth next year so we're not in the recession camp. certainly you highlighted some of the risks with issues around the banking sector a few moments ago. we think, you know, we're slowing and that q3 bounce in gdp which is really quite impressive was aberrational as well. >> how to you take what we're hearing from corners of jpmorgan about the risk of higher for longer, boiling the frog scenario things start to break, credit events happen, income excess savings low end deteriorates completely, things like that? >> yeah. so i guess we are in the higher for longer camp. we're not looking for a cut until the third quarter of next year which look on the longer end for -- as far as these things go, and certainly in the

meantime we cannot rule out that the events that we saw in march are completely behind us. we are cognizant here that even while we're looking for a soft landing and so far have had a disinflation, going forward, we might not be as lucky as we have been this year with the combination of really strong growth and as austan goolsbee mentioned a pretty historic drop in core inflation. we've been lucky this year, but i wouldn't take that to the bank for next year into which is the bigger risk next year? inflation doesn't come down to target or the economy falls out? >> i would tilt towards the economy weakening and a modest contraction occurring. you know, look, i think inflation, you mentioned core pce 3.7, but on a three and six month annualized basis we're running below 3%. we're making good progress, maybe getting all the way down

to 2%, may take some time, but i think if we're in the 2 handles most people won't be too unhappy with that. certainly we are a little concerned here that lag effect of monetary policy may start to bite a little more next year at a time when, you know, you talked about the fiscal situation. this year was a really big year of deficits and next year might be slightly less accommodative. that could be another modest head wind with the banking stresses we mentioned earlier. >> going into an election year how serious you expect the fiscal conversation to get. are politicians looking to offer solutions or is that not politically sailable. some comments from the street ta maybe the easiest things too is to raise taxes on corporates. >> i didn't see much of a common

vocabulary when it comes to addressing the deficits. the only thing we can expect the fiscal responsibility act passed in the early summer late spring i guess will kick in early next year and reduce spending or cap spending and that will give you some modest degree of restraint on spending, but i think the idea that the two parties are going to reach across the aisle and get a tax and spending package just strikes me as optimistic. >> yeah. still trying to avert a shutdown this month. >> right. >> it's good stuff. good to talk to you. look forward to seeing you again soon. >> thanks. as we head to break our road map for the rest of the hour. uber shares in the green. the company missing earnings system but reporting record ridership. the stock almost doubled on the year. can it keep going higher from here? >> the health in housing, dr horton trading higher. we're going to talk about the sector with the ceo of compass, that company fresh off earnings. >> ev makers losing their spark,

many turning to price cuts to combat weakening demand. more on the road ahead for that group as rivian and lucid gear up for earnings today. "squawk on the street" is back after this. i think i'm ready for this. heck ya! with e*trade you're ready for anything. marriage. kids. college. kids moving back in after college. ♪ finally we can eat. ♪ you know you make me wanna...♪ and then we looked around and said, wait a minute, this isn't even our stroller! (laughing) you live with your parents, but you own a house in the metaverse? mhm. cool...i don't get it. here's to getting financially ready for anything! and here's to being single and ready to mingle. who's ready to cha-cha?! ♪ yeah, yeah ♪

nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! [ cheers ] yeah! woho! running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. we've got gross bookings over $33 billion, up 18% year on year. ebitda record $916 million, up over 50% year on year. free cash flow is $1.1 billion.

i think uber is growing faster than larger economies. signal we get from the larger economy but we're gaining category position within our category we're growing faster than our category because we have the platform of both rides and eats, generally we're doing better than the rest of the competitors in the space. i think it's a barometer of the economy. >> uber ceo dara khosrowshahi was a guest on "squawk box" this morning. the stock a volatile morning, although if you take a look at the year, it's been a very good one. up over 90%. right around ones $100 billion t value. our next guest is not driven by any material comments from the outlook for '24. joining us oppenheimer analyst jason. price target 68, has a buy. give me your take on the quarter itself. >> yeah. the quarter was fine. you know, they beat gross bookings 2%, they beat overall

ebitda 7%. that's the two metrics that matter. this is not a revenue business. as far as the outlook, they're guiding basically in line for gross bookings and then 4% above for cash flow in the fourth quarter so that's fine. you know, this is a company that historically is kind of like sandbagged the margin outlook and i think people are looking where margins can go next year and they're just not telling you that right now. >> what do you think, though? >> we think it goes high. the incremental margin this quarter was 9%. they have this kind of 7% long-term target and yet they're telling you that in october they're at record levels across both mobility and delivery you know, so they're telling you that the business is seeing no slowdown and they're just, you know, particularly delivery,

delivery came in, you know, something like 16% above our estimate and 20% above the street from a profitability. they are set to do meaningfully accelerate profitability next year. they just haven't given you the green light to put it in your model. >> does that mean we have a discussion now about whether they get included in the index and whether there's some kind of chase around that? >> you have a new cfo starting tomorrow, so part of why they're holding back is to give him an opportunity to decide what guidance should be for next year and how much they should invest in growth or deliver the bottom line and then to your point, that bottom line that gap earnings is what gets you in the s&p, depending on who the other companies who might be considered forthat opening, you know, it's like how much do they have to step on the gas to drive margin, to drive gap earnings. >> jason, andrew asked dara about autonomous this morning

and dara kind of said it would be 5 to 10 years before that was operable at scale. does that remove any long-term holy grail sort of thesis, at least when it comes to some of these mobility companies? >> i think we're going to continue to get asked by our investor clients who live in san francisco and can take waymo to work f if it's a threat, but lo at the stock price. that was a concern probably, you know, a year or so ago, but i think it's just clear for a lot of factors it's going to take time and even when it comes, there's not going to be enough supply to satisfy all the people who want a ride at the same time like right now in san francisco, if you want to use waymo you have to book it in advance. think about the pleasure of uber it's on demand and you put a value in, you know, what's the quickest car that's going to get to me. >> yeah. by that we're supposed to have fleets of robot taxis everywhere.

i remember talking to travis kalanick about it, 2021 he had it by. i guess we're going to be waiting longer. thanks for the check-in as always. >> thank you. still ahead, a read on the housing market. home builder d.r. horton beating estimates and hiking its dividend. the stock is up today. same time compass also out with numbers, stock off a half a percent. the results and what he's seeing as a result ofombung he yi trends and the consumer. don't go anywhere. and more buss move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business.

welcome back to "squawk on the street." d.r. horton shares higher after a beat on the top and bottom line and profit comes in 13% above expectations an while closings and orders did disappoint sales profits did top. they're bullish about its revenue in the year ahead. one of the best gainers on the s&p. >> sticking with the housing market, compass reporting free cash flow positive for the second quarter despite a revenue decline. our next guest says there's an acceleration of spillover migration from historically low inventory and high mortgage rates and predicting mortgage rates will come down by the end

of 2024. robert refkin joins us, compass co-founder and ceo, here at post nine. you've been trying to make progress on the profitability front in this environment and that's what you've done this quarter? >> yesterday we announced we were free cash flow positive for the second quarter in a row, that our market share grew year over year and we had our second highest agent retention quarter in our history as a public company. really proud of the team and their work. >> despite what kind of environment is it right now? >> the market was down 20%. we were down 12%. we outperformed the market. >> because of your exposure to places like new york which held up better? >> because we've nearly 30,000 of the best agents in the country and the number one brokerage by sales volume in the country. the major markets in the country. what i would say is happening overall, though, is there's just not enough inventory. we have record low inventories 4% less than last year and last year it was already record low inventory. prices are at an all-time high

because there's more buyers than sellers. if prices -- prices can't be at an all-time high if there are more buyers and sellers. the one silver lining the rate lock issue is reducing overtime. 60% of homeowners have mortgage rates of 4% or below but it was 72% earlier in the year. you take that trend out for two years, two years from now, we could have less than a third of the country locked out from selling their home. that would be a good thing. >> if mortgage rates were to stay the same in. >> are going to stay the same. if you look at what the system are, that the fed will not increase rates further in the first rate decline will be late spring, the outlook we're basing this on. >> how much pent up demand is there? i showed a survey that cnbc just did for people 18 to 34 and more than 80% say they do not own a home. >> there's a lot of pent up demand. you have the five ds keeping the market moving, diapers, diplomas, diamonds, divorce,

death, those life events keep the market moving at this pace, it's a must move market. all the people that want to move they're really on pause. we're -- deet ferred demand is, it's in the people that want to move, not that have to move. it's building up month over month. >> robert, when you -- in a press release you say you identify efficiencies in the business targeting annualized nongap operating expense, what are those? >> we're pursuing vendors, very aggressively, trying to bring vendor costs down. we are bringing offices together to create energy, not to reduce energy. say you have two floors and they're both at 20% capacity, make it one floor bring people up to force capacity to bring more energy in, not to reduce it. we have efficiencies of offshore in outsourcing the labor in some of the back office. those are some of the key areas. >> is that how much more room do you have to go here in terms of

pursuing -- >> we have said to the street is that we are targeting $850 million buybacks. we're at around $900 million run rate. 50 million more to go. the market will come back. our expenses we're going to hold them at the new levels and make sure that delta of the market increase to our on ex, that delta ebitda goes to our investors. >> what about the pressure on agent commissions and how that's going to affect your company and the entire industry? >> there is no evidence of pressure on agent commission. if you look at the last two years commissions have increased because in down markets, buyers and sellers want to work with the best agent and the best agents command a commission. they independently decide what that commission is with their buyers and sellers, and so -- there is no evidence that there's going to be pressure in the future. >> so -- but you mentioned earlier the lower quality agents, there might be -- those are the ones that -- where

things will change? >> exactly. what happens in these down markets is the worst agents leave the biz and the best agents keep the biz. the worst agents are the ones that typically don't know how to convey their value and ask for their independently determined commission and so those -- they tend to be more discounters that leave the business and the agents that stay are the best agents who command the value in their commission. that's why commissions generally increase in down markets. >> you think it's been an overweight on the stock which has had another leg lower lately. >> right now the real estate stocks are being driven by the 10-year and mortgage rates more than anything else. if the mortgage rates go up to 9%, we're going to see pain. if the mortgage rates go to 6 we'll see green. >> got it. well, we'll keep an eye on both. thank you very much. good to check in. >> coming up after the break, tesla shares down more than 15% in a month. amid what some are calling the global ev meltdown.

i think that's a deutsch phrase. are the fears ovbln.erow we'll break it down with a bull-bear debate in a minute. ec! -time sheet corrections? -unnecessary! -unentered sick time? -unnecessary! -go! -unnecessary! -go! -unnecessary! -when you can take this phone, you'll be ready. -make the unnecessary, unnecessary. let your employees do their own payroll.

welcome back. i'm silvana henao with your cnbc news update. it's been one month since the surprise hamas attack in israel that launched a war and an israeli bombardment from gaza from the air and ground. israeli prime minister benjamin netanyahu shed some light on his plan after the war overnight saying israel will have an overall security responsibility for gaza for an indefinite period. it's election day, and it ohio voters deciding whether to enshrine abortion access into the state constitution and kentucky is voting on whether to keep the state's democratic governor in office while virginians will decide on the balance of power in the state's general assembly. the special counsel overseeing the investigation into the president's son hunter biden is meeting with the house judiciary committee behind closed doors this morning.

it marks the first time a special counsel will answer questions from congressional investigators before concluding the investigation. the special counsel says he will not provide details about specifics of the case, only his authority to bring charges. carl, i'll send it back to you. >> sylvania, thanks. ev sales in the united states on pace to surpass a million for the first time ever according to cox automotive. there are continued signs demand is waning as carmakers and dealers slash prices, lucid and risk vien set to report today. one of our next guest is predicting a global ev meltdown. joining us former ford ceo mark fields and cnbc contributor and deutsch lead auto analyst emanuel. emanuel, your note raised eyebrows a few days ago where you talked about the playbook for a meltdown and we talked about sticker shock and range anxiety and the lack of new models and gad prices are tame.

is meltdown the right word to use? >> i think it's a meltdown in investor expectations and certainly in the stock prices. in terms of ev adoption it's probably more a slow down for the time being, but the expectations were so high we're seeing a collapse in this. to your point it's about affordability and other sort of things like range anxiety but on the affordability side what concerns us is most awesome haven't cracked the economics to make an ev affordable. as a result, we don't really see a path in the near term for this to happen. it could take several years until such model comes out and this is going to continue to put tremendous pressure i think on both their earnings but also probably on the stock prices. >> mark, even some players who have tried to leverage the growth, hertz is a great example v come out in the past few days talking about the challenges. >> what we've seen, carl, the bottom line is ev demand is

cooling as the early adopter phase kind of wanes off. you have a challenge in the industry. listen, i hear emanuel term around ev meltdown. i think that's very true, particularly for the new companies that have come on and are solely evs and very high price points. i think the established oems like gm, ford, stellantis, they're going to have challenges, but, you know, they have their business, the combustion engine business, which helps fund their investments in evs and it's going to take longer now because you're seeing almost the ev market is acting very much like what i would say the industry of old with price cuts, rising inventory, increase incentives to juice market demand, and you're seeing the automakers take a rationale approach, we were ahead of the curve in terms of consumer acceptance so we'll

push back investments. where we stood six months ago, it's going to be a challenging time for everyone involved in the ev market right now. >> yeah. mark, you use that word challenging twice. what does that look like? does it delay, but it still means the transition comes or, you know, are we waiting a lot longer perhaps? >> well, i think it's -- this is going to be a transition in compulsion systems. to your point it's going to take longer than everybody expected. you know, at the end of the day, you know, you're having the established automakers pushing out these investments to save capital, but let's face it, general motors is still sticking to their plan of having a million units of production capacity by the end of 2025 and as they close out 2023, they'll be challenged and selling slightly less than 100,000 evs. that's a 10x increase in the

next two years. they're coming out with new products, but at the end of the day, the challenges for consumers are cost, you know, evs still even though they've come down significantly this year about 2025%, they're more costly than vehicles, and most importantly you mentioned this, david, the -- it used to be called range anxiety. i actually think it's charging anxiety at this point because of the lack of charging infrastructure. >> yeah. >> so emanuel, how does that impact the stock? who needs the biggest adjustment? >> yeah. so i actually feel, you know, almost the opposite, which is the traditional legacy awe automakerses will have the hardest time making a transition and are having the hardest time. the way you see that is the amount of match-up they lose on each ev they are selling. there's few automakers out there making positive money selling evs, but tesla is one of them. that's going to determine the

ability of each automaker to offer vehicles people can afford. in addition to deeper ev losses, with larger investments, probably are required. you also have the core combustion engine business which will come under pricing pressure because current prices are largely unsustainable and will normalize. the higher labor costs from the uaw and the new contracts. earnings will be coming down materially over the next couple years before, perhaps, you know, they crack the code on ev by mid decade and that's very much the proof is in the pudding for this. i would give them credit for now for what happens in the decade. i think we could see more stock price pressure on some of these traditional automakers. >> you point out that china appears to be the exception, where penetration continues to increase. you like. can you explain what's happening

there and their macro problems why they would be having a fiercer curve than north america? >> i think what's happening in china is that's -- they're addressing the problem by having essentially a price war. prices have been coming down dramatically. it is a considerably more competitive marketplace than the rest of the world, with many more offerings of evs at every vehicle segment. prices are coming down, and that's essentially, you know, securing the volume growth. volume continues to grow, which is fine for the entire ecosystem, auto supplies we cover as well, but in terms of automakers, even the most successful ones are face something incredibly competitive conditions, and so we truly feel this global ev meltdown is truly global. there's no real exception in any region. >> mark, i would like to give you an opportunity to respond to emanuel's view of the gm, ford, stellantis of the world, if you disagree with his statements? >> well, i'm not as pessimistic

as emanuel for a couple reasons. one, is i think when you look at the business, you know, we've had a period of high interest rates for over 12 months now and you're still seeing a lot of pent up demand in the marketplace. the industry is growing now with low single digits. the average selling price of a vehicle is still steady at about probably $48,000 for a vehicle. i think there's still a lot of pent up demand there. secondly you will see the automakers and you're seeing folks like ford and toyota pivot to a certain degree hybrids and plug-in hybrids which are a better solution for the customer in terms of the price delta they have to pay versus a regular internal combustion engine and the same environmental benefits. those are actually pretty good economic margins for the automakers. you know, the automakers, the established automakers, have proven over time they can be pretty resilient.

listen, versus six months ago it's a net negative, but i am not nearly as negative as emanuel is. >> yeah. >> okay. >> mark and emanuel, good to have the discussion nonetheless. thank you, guys. >> thanks. just want to show you what's happening in the market. a little lift here. the dow is now near the session highs up 70 points or so, being helped by some of the tech names. salesforce, microsoft, unh and goldman sachs are the biggest contributor to the dow gains. s&p 500 also climbing a bit. it's up 0.3% driven by tech, consumer discretionary, communication services. some pressure today on some of the other cyclical groups like energy, materials, and industrials. we're going to keep an eye on this market with the nasdaq up 0.8%.

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a lot of news around the semiconductor industry this morning. fresh numbers out of nxpi and globalfoundries reports. intel could see big gains ahead, at least tied to the chips act. kristina partsinevelos joins us right here on set to break down some of this news. what's going on? >> intel is expected to be one of the first companies to get chips act funding as "the wall street journal" reported. the commerce department has not made any final decisions yet. i've been told they're delayed with the chips act funding and will make an announcement early december now. allocating money to intel shouldn't come as a surprise to investors given the press that promised $43 billion in spending, optimism from pat gelsinger when he talks about the chips funding, public visits from the president in ohio, the same kind of enthusiasm was seen from wolfspeed and a certain degree micron and taiwan semi

which could indicate that they have received positive signals from the commerce department just behind closed doors. separately intel announced that their most advanced chip design will move to the test production stage by q1 of 2024. this is important to the foundry business because it plans to make the chip for companies like ericsson. a step in the right direction. i want to pivot to nxpi, the stock popping above 3%, almost 3.5% after earnings. there was weakness from peers like analog maker texas instruments or on semi. investors were worried heading into nxpi earnings. the earnings call was this morning. what they said on the call was that channel inventory was improving, auto content growth is expected in 2024, so that was a big driver, and they're saying it's driven by hybrid as well as electric vehicles, so pretty much squashes that notion that ev is slowing down and seeing sequential growth from china. overall we know this, it's been a mixed bag for semis this

earnings season. solid evidence of a pc and data center recovery from intel, amd, super micro. offset that by the industrial and automotive markets headed for two to three quarters of inventory correction and poor visibility from on semi, lattice. on semi is a silicon carbine producer. overall, there seems to be expected growth in q4 and heading into 2024. >> yeah. i was going to ask what the read is from analysts on 2024 with signs of recovery in some of these end markets? i have a ubs report and they're turning positive on global semis. jpmorgan. a bunch of companies put out reports on why they're positive. the four or three major factors is one, you have ai demand that is still under way especially because you have the part of the large language model not just nvidia playing at this game. the second part, we mentioned pc, smartphone, you know, that cycle of turning up. the third point is that the inventory days have come down. then if you look at the

valuation of semiconductors and you compare it to global -- oh. you're making a face, but the valuations have come down a bit so the argument could be made this is cheaper than let's say software or other sectors within the tech space. >> all right. there you go. thank you. kristina partsinevelos. speaking of chips more in the next hour. we have an interview with the ceo of crip maker globalfoundries, as shares rise on strong results and guidance. it's up 8.5%. stock having a good day today. that entire coming up in the xt hour. up 484 points on the dow. don't go anywhere. rked hard, yod , you looked after it. maybe, it's time for your home to start taking care of you. - [narrator] if you're 62 or older and own your home, a reverse mortgage can put more money in your pocket by eliminating your monthly mortgage payments, paying off higher-interest credit cards, and covering medical costs. - you paid down the mortgage, invested in your home.

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welcome back to "squawk on the street." e-commerce giant shein getting closer to an ipo. bloomberg says they are seeking $90 billion, far higher than shares are on the private market. the exact timing is unclear, i asked the ceo about it last week. >> clearly, focused on growth. the business is doing well. you're -- >> responsible growth. >> responsible growth. you're dealing with the regulators. you're one of the most valuable

startups on the planet. what is the thinking on the ipo? a lot of people think you're doinging the groundwork. >> responsible growth is important for us. doing everything to ensure our growth is steady and stable. >> while there's no indication they're nearer to an ipo, you know, i can report according to sources familiar, they haven't had any conversations about another private funding round or about any kind of valuation on the public markets at this point. since their last funding round, which valued at about $66 million in may, a step down from the $100 billion it got in 2022. it's kind of a speculation rumor mill at this point. >> if undertaking extensive pr over the i don't know how much

it is, we can expect them to come public in, let's say, 12 months? >> moving in that direction but i'm not sure where the $90 million comes from on bloomberg. haven't heard a discussion -- >> it's a big number. nothing like bytedance and -- >> what's bytedance? >> 400 -- >> it is one of the top three in terms it of most valuable privates. >> we'll see if and when we get a number we can run with. one more thing before we go. nearly $2 billion of art going up on the block this week. there are some clouds on the horizon when it comes to demand. robert frank is joining us with that story. good morning. >> big test for the art market. fall auction season kicking off tomorrow. sales expected to reach between $1.5 billion and $2 billion, that would be well below last year's total of $2.7 billion. auction items of post war and

contemporary art were down in the first half. sellers don't want to risk a decline in prices so sell side is much slower. the middle east likely to be weak. the big question is how the u.s. holds up. the star of the week is going to be this picasso portrait of his mistress, expected to sell for $120 million at sotheby's. they also have a rare self-portrait of bosciat. and christie's has one of monet rare waterlilies estimated at $60 million. if you like wheels more than lilies, the most expensive ferrari, a 1962 gto expected to sell for over $60 million. guys? >> $60 million. for a car. just give me a framework.

what was its last sale or -- give me a sense of -- >> this car was owned by jim jagger who invented the speed radar on your car. so fitting he was the owner. he bought it in the 1980s. this car originally sold in the 1960's for $5,000 or $6,000. good appreciation. ferrari only made 36 gtos. they're considered the greatest ferrari, one of the greatest race cars ever sold. that's why it's worth $60 million. >> so is the froth coming out of the market or not? >> absolutely. look, these top trophies like this monet, this picasso, they'll do fine. almost everything below that, sara, is around 20% to 30% below what the peak prices were 37 again, with china not bidding, the middle eastern turmoil, the question is how the u.s.ed ebids hold up but prices are down. >> the chinese aren't in the market anymore? >> no, there were some sales in hong kong recently that were weak.

we don't see them showing up. they're selling more art than buying right now. you've seen major collectors in china and hong kong sell art recently. that's want a good sign for bidding. >> robert, thank you. >> thank you. >> robert frank. speaking of sexy cars, want to take the opportunity to tell you next week we have a new documentary coming out on cnbc thursday, can't miss, 8:00 p.m. eastern and pacific, "inside track: the business of formula 1." there will be, look, sexy cars that are very expensive and cost millions and millions. david, i know you don't know much about cars. the r&d is an amazing story. >> enormous r&d -- >> and it's all secret. that's their competitive edge. they work on it and they upgrade it at every single race. costs hundreds of millions of dollars a year for them. >> this season is being dominated by one team, correct? >> look at you. red bull. max verstappen has won 17 races

this season, a record number. there are questions about whether that's not great for the business. you want some drama. although i will say behind him the race for two and three and four has been very competitive and very exciting to watch. >> is that a reflection of his skills as a driver or back to the r&d? >> it's both. he's a generational talent, but it's more the car. it's more the car than the driver. you can't have a bad driver and a good car winning races like this. it's a combo. >> red bull has the best car right now. >> good play and no execution, like in football. >> i saw some of that last night. we'll talk more about f1 in the weeks ahd. after this, another great hour of "squawk on the street." don't go anywhere.

good tuesday morning. welcome to another hour of "squawk on the street." live on the floor of the new york tstock exchange. meredith whitney is back with a brand-new deep dive into the consumer. chipmaker foundry on results and intel leads the race. inside the rise and second fall of wework filing for bankruptcy after once being valued $47 billion