finally say, wow, that's amazing asset? >> i don't know, i don't know, i hope it's not too late. the day you tell me you love me. jo joe -- >> oh, i've got seven seconds. >> and you're going to use them too. >> give it over to our friends on "squawk on the street." >> that's next, enjoy. good tuesday morning, welcome to "squawk on the street," i'm david faber with jim cramer, live from the new york stock exchange, karl quintanilla is in paris. trading one-half hour from now, very different picture this morning than it was 24 hours ago, but frankly a bit of a muted rally at this point, our road map begins, of course, as you might expect with the markets after that major selloff yesterday, stocks are looking to

bounce back after their worst day since september, 2022, c caterpillar doing its part. plus, a federal judge rules google broke antitrust law, that it is an illegal monopoly when it talks about online search. the justice department's antitrust chief jonathan kanter is going to join us live in a first on cnbc just a few moments from now. starting with the markets after that global sell-off, turn to jim, we are looking up, japan came back dramatically, though not making up for all of the losses, and yet there still is sort of a sense, i think, of unease, i think, what i'm hearing is there's still a sense of unease amongst investors as you might expect given all the cross currents we've been hearing lately. >> absolutely. in favor of a bottom is the fact that i saw a lot of tv trucks out there. that tends to be the local news

tends to get it wrong. against it, and why i think things go lower is that frankly other than the so-called japan carry trade there seemed to be a lot of hedge funds on the wrong side of things. and yet the confusion comes from the fact that almost every quarter that's been reported in the last 24 hours is very strong. so, because there's so much confusion, confusion is not read bying, it reads selling. i am therefore concerned that we either go back again or that there is, what i would say, a mistrust of certain stocks that have been loved. and a race to the sidelines. >> yeah, you think so? i mean, cap tech came back during the session yesterday, and powering sort of the broader market off of its lows, we still dend end down more than 3% on the s&p, the worst day we've seen since '22. >> david cassic comes out and says look, if you buy

historically, it does work, but you've got to understand, i was working with the people from -- who do my oscillator, market edge and it has not been up three days later when you have this kind of not that oversold and big decline. it's been down. we're not done with the selloff. and i could argue that even though the earnings were great for everything that's reported, i think that it's okay to believe that we haven't seen the bottom. >> yeah, well, we're going to talk about some of those earnings, uber, caterpillar, i mentioned. >> three great earnings. >> all strong earnings reports. >> and say the lifeline, simon properties was very good. there are so much that was good. but, david, this is not a microsell-off, all those things mean nothing, this is about s&p and nasdaq, big hedge funds that would never even know the difference between an uber and an airbnb, that's what we're stuck with. >> just to come back, i said this numerous times yesterday in

the midst of the worst of the sell-off, there's no issues in credit at all. >> no. >> liquidity was fine. >> right. >> these are not the -- this is more of a typical kind of a swoon, and frankly we've seen many, many times -- >> i agree. >> in this month. >> but everybody tends to look for recession. it's very tiresome, frankly. it's like, wow. we have a recession with seven great companies reporting last night all doing great things. simon properties, the largest law company, wouldn't they know something? here's what they know. business is stronger than expected. i had a tanger last night, that's the largest outlet mall, business is stronger than expected. we may have some companies that are weaker than expected buff i don't want to go against caterpillar when they're struggling. >> for every positive give you a negative or cite you commentary from a company during earnings that talked about a weakening consumer, often it can be a catch-all for why we didn't quite hit the number. that said, there's no doubt we've got certain signs the

consumer is weakening. we can go through any number of them. but, we've got a decent number yesterday that -- typically -- services not what the market cares about but yesterday it managed to stabilize the market and sent rates back up more or less where we started the day before. >> let's talk about the market. what the market is. the market is who we're about to speak to, mr. kanter, the market's amazon, which morgan stanley trashed today. >> they did. morgan stanley had negative thoughts about it. >> i might scratch them from my christmas party invite, you know. it was really bad. >> it takes a while, fine. disappointing the results, they say, on am son, multifaceted. >> multifaceted. >> wrong about the slope of retail profit improvements, big picture, the mixed shift toward lower average selling prices and lower margin items. combined with a slower than expected in high margin advertising and cost to serve

improvements is weighing on profits. >> that guy is obviously using walmart.com now. when i read that, i don't think he realizes what there is -- there's a strategy. david, if you go after all these toiletries -- >> we bring this guy in all the time. >> and dan iems is like, where is he? >> he's in tokyo, actually. >> i saw that. >> you've got to know where he is. >> better jacket on, over there, they dress up. the problem, david, amazon is going after walgreens and cvs, those are two of the weakest retailers in the world. if you take them down, they're going to close a couple thousand stores, then you own the corner store in a lot of different places. and i'm telling you, if you own the corner store in west hampton from that walgreens that just came from rite-aid, you know what, good luck. i really that amazon's strategy is brilliant. you can say they backed into it. if they wipe out a lot of stores, the man we're going to speak to, kanter, goes to the

ftc, they'll come after amazon because it's too good in the same way they come after google. google is too good. apple is too good. how about this, nvidia, real good. that's the market. okay, the market is not caterpillar. used to be. used to be t-mobile, t-mobile is good, but lumen came back to life. martin martin rawlinson at louis -- we're going to take am son from buy to sell. >> beyond that, a very stable ruling. we're going to talk to kanter in a little bit. >> this kanter. >> mr. kanter. show some respect. he's taking nvidia strong sell. >> the guy has worked his whole life to have a great chip, of which yesterday we heard is too hot. >> very upset at antitrust enforcement. >> everybody decided to hate nvidia, the pinata of the moment

and i happen to think it's a great company but i'm a loser and a joker, i'm a smoker, i'm a midnight toker. i'm breathing the -- of love by liking nvidia, there you go. >> there's nvidia. you buy today, jim? >> do i? >> just answer the question. >> i'm not going to put my -- >> answer the question. >> i was going to come up with something really bad. not going to say it. so good. oh, my god, i've got to tell it to somebody, not you. i do not want to go into that particular line in the sand, i'm not, i'm not. there's a shiv. the guy has a shiv behind him. >> come on. >> jensen. >> no, joaquin. jensen is on the hot seat for no particular reason other than he has developed -- spent a lifetime developing a chip, which by the way, the misinformation says is going to be really late. i heard that it burns way too hot, that all the things that i said about it being ready are

wrong, and -- >> they're going to sell more h-100s in the interim, what's so bad about that? >> you, you make sense, go to the buy side and sell side, instead of being whatever, the no side. are you switzerland? >> i prefer the no side very much. >> are you switzerland? >> i try to be. i prefer to be norway. >> no, during that era. >> oh, that era. i always marvel at norway, particularly the winter olympics. >> did you watch barrel, caroline marks. do you watch surfing, it's in tahiti, man. >> i know, i know. >> the guy from norway won the decathlon. i think he did. you know who would know. carl quintanilla would know. >> jeopardy game, david, i'm not answering more questions from you live on air. >> come on, carl. you've got to know who won the decathlon. i watched that guy win, i'm

pretty sure. >> i'm told norway did win. >> yes. >> guys, great discussion, obviously a lot of moving pieces today. we'll keep you honest on the markets. but i'll tell you what's going to heat up today is a sport that you guys both enjoy quite a bit and that's basketball. usa men's tonight going to kick off the knockout rounds versus brazil. they went 3-0 in group play and won all of their group play matches by 17 points or more, team brazil, by the way, does have gi santos who plays with steph curry at golden state, u.s. of course four-time defending gold medal champs, two leading scorers in group play were anthony edwards of the timberwolves and kevin durant of the suns, if they win versus brazil they move on to the semis on thursday and keep their dominance going. take a look at the medal board as the u.s. continues to be way ahead on overall medal count but the race with china does remain

quite tight, maybe later on today we'll talk talk some beach volleyball, as jim mentioned, track and field, women's soccer, in addition to everything going on with the markets today, guys, whether that's caterpillar or uber. >> carl, the justice department is going after, i think, all of big cap tech, how many of the ceos are there right now? >> i think the ceo count was definitely higher in week one, i think some of that has moved out. but yeah, i don't know. i think certainly given the action yesterday, jim, the focus in corporate america has tilted back to the markets, even as we try to keep an eye on the competition. >> i have to tell you, carl, i think it's gone right back to you. the japan carry trade, which no one understands, including the people doing it, but these events, i was on this peacock, my daughter set up peacock olympic gold, we're -- the country is transfixed, carl, and as soon as the market closed, we're watching tahiti, we're

watching people go through some sort of barrel, whatever the heck that is. and i've got to tell you, all we want to watch is track and field. we want the 4 by 100, we want everything, give us everything. >> it is a nice respite, especially from just the energy we expended watching japan yesterday, but as david pointed out and you point out the cost of note today, the discussion about yield stability you saw, sticking with one cut yesterday, in ed's words, this too will pass. >> i thought that ed was very right, he represents a calming influence when we have what david was describing as a regular sell-off carl, i actually just feel that this was something, not one and done, because we still don't know where everything falls, a lot of people really don't understand it was a japan problem. all our earnings that came out are good, and everyone wants to blame the fed for missing one cut. there's only going to be one cut. i don't know, carl, not being sanguine, i'm just saying that you can watch the olympics now,

it is not going to fall apart. >> okay. that's good to hear from this side of the pond. >> yeah, carl, we'll be coming back to you, of course, and the olympics are awesome, you get home, you want to watch them or lucky enough to be home early enough you can watch them live. >> i'm in the kick board competition, senior kick board. >> that's one of my favorite events. we've got three more inflation reports, by the way, between now and that fed meeting in the middle of september, all right, we've got some breaking news, though, right now in washington, d.c. and for that we will get to megan ca sela. >> we have just learned nbc news has one source reporting that vice president kamala harris has chosen minnesota governor tim walz to be her running mate, he will be the vp's vp, this caps off a 16-day sprint to secure the nomination for harris and to choose her a running mate, with this pick she's really going with someone who campaigned as a moderate and comes off like a moderate, but has governed like

a progressive in minnesota, he passed a billion dollars for affordable housing, passed a tax credit for low-income parents, he's really been in supporting these progressive policies, he campaigned as a moderate, though, also a hunter and a gun owner, so with this pick, yeah, he's someone who has sort of taken hold of the youth vote, gotten really popular on the internet. we know that harris was going with someone she was hoping would bring her a real electoral bump. with minnesota she's not quite getting that. it's been a reliably blue state since 19 # 72, but you can appeal to midwest voters, who might look at him, a former high school teacher, as someone they can relate to. minnesota governor tim walz will be the running mate, david, back to you guys. >> you know, it's funny, not bringing quite as much youth to the ticket perhaps as josh shapiro would have as well. >> i think that's what they were looking for here, harris herself doesn't have a long resume in governing experience, she was only in the senate for one term

before she became the vice president. they were looking for somebody here who has a lot of executive experience, who is older, who has been in politics for a long time. walz spent six terms in the house of representatives and became a two term governor and has military experience and schoolteacher experience that's made him an entertaining, plain spoken folksy presence, he had to keep the attention of high schoolers for that long. he has the breadth of experience. >> megan casella in washington, d.c., important development. and the election is going to take up more and more of our time, and certainly more head space, so to speak, in that of investors as well in the weeks ahead. >> his view on business, that's what i'm focused on, and we know he did cut taxes and we think when it comes to corporate taxes, they'll go up, if ms. harris wins. >> yeah. >> let's bring in the guest of the day, for network, landmark

decision, federal judge has ruled google violating any antitrust law by maintaining a monopoly over internet search. jonathan kanter, assistant attorney general, joins us first on cnbc, and mr. kanter, congratulations on a very, very big win. >> thank you, jim, great to be with you again. >> let me ask you, when a judge rules that someone is a monopolist, which means exclusive agreements have reduced incentive, and innovation, what could possibly be the remedy? because, how do you break the exclusive agreement? how do you get incentives and innovation started again? >> sure, this is a familiar problem, so this -- these kinds of exclusive agreements were at the center of the usb microsoft case and the court observed there, as i would observe here, that there are remedies for all things but death, and at the end of the day, what's most important is that we meet the market where it is, we reflect market realities as they exist

today, and we look ahead at what the next inflection points coming down the pipe are in terms of competition and protect them from anti competitive conduct. >> mr. kanter, while google won, it would seem there's an unintended consequence here, apple, which is who's involved in getting the payments, they lose the payments. it's most likely, as the judge says over and over again, that google's predominance won't change because it has a superior product. so isn't the loser apple, not google? >> well, the losers were competition during the conduct, the anti competitive scheme that google perpetrated, but the loser, the decision, is google. google is a monopolist. it illegally obtained its monopoly power and now we need a remedy to sufficiently address the anti competitive conduct and provide opportunities for new invate fors to reach market.

there will be a process in place, the court has ordered a conference in september, and we'll talk about remedies. but like i said before, in a market that involves technology and dynamic products, it's important that remedies actually meet the moment in all of our cases, and that they meet the market where it is right now. >> well, assistant attorney general kanter, you just said it, you said that you have to take care of watching what the changes are, the dynamic. i have here in my hand a july 25th search gpt prototype that microsoft, using co pilot, and search gpt wants to put together and will do a search engine. there's 200 pages devoted to fact that there's no competitor to search. you have to do this. could you not be overridden by the events of july 25th, 2024 prototype. >> those are factual questions, the court addressed in its lengthy opinion, relied on

expert testimony as well as documents and data. the fact of the matter is, competition matters most when there are new inflection points that emerge in the market, and monopolies have the greatest incentive during inflection points to siphon competition before it has the opportunity to take hold. right now is perhaps the most critical inflection point we've seen in the search market in 15 years, and making sure that it has the opportunity that competitors have the opportunity to compete on the merits, benefit of their own innovations, and win or lose based on the merits of their products is the most important thing right now. >> mr. kanter, just a couple of questions on process, so investors can get an understanding. what happens, you mentioned you're going to be, in september, you're going to be, what, talking about remedies with the judge, google, i would assume, has an opportunity to be a part of that as well. can you give our viewers is a sense as to what happens from here, both that, the remedies,

and then what's going to be an obvious appeal and how that all plays out and whether remedies take place in the interim or wait for the appeal to actually take place as well? >> yeah, so that will have to play out in the core process, and i want to respect that, so i can't really comment other than to say that the court will order a path forward. in the past there are cases where courts have effectively conducted a remedies trial, there are other cases where different outcomes, and different processes were put in place. that will be up to the court. we look forward to being there, and we look forward to making the arguments we need to make in order to protect competition. >> are you going to -- you won't share in any way what you would like to see in terms of a remedy, or are you willing to do that? >> it's premature for us to talk about that right now, we look forward to engaging with the court throughout that process, for today we're really thrilled with the outcome, i'm really proud of our team which fought day in and day out against a

formidable adversary to bring the facts forward and we have a decisive victory at hand. >> mr. attorney general, what is wrong with google paying apple? >> so, we covered this in our case. it's one thing to companies to engage in legitimate commercial interactions. it's another thing to pay somebody in exchange for exclusivity. it's another thing to pay somebody with a requirement that they don't work with a rival. those are the kinds of issues that when you have massive amounts of monopoly power can violate the law. the law is pretty clear here. and we brought those facts. we explained why it was a problem. we explained why it harmed competition. and ultimately, we succeeded in convincing a court, and we have a very lengthy detailed opinion that explains all of this. >> you know, i read the opinion. i'm just concerned about the possibility that a company with the superior product paying apple, someone, this is valuable real estate.

you can't just ask apple to give the real estate to whoever wants it. >> right. again, the case focus is not on the fact that there were payments that companies are engaging in commercial contracts. the case focuses on the conditions that accompanied those payments. that's a really important aspect of the opinion. again, these kinds of exclusive arrangements are not new to antitrust law. they've been discussed for generations, and so the concepts that we brought forward here are well within the mainstream of antitrust enforcement. >> okay. i'm watching a piece that the "new york times" wrote, not that long ago, about regulators close, and nvidia scrambles for a response and i read this and say to myself, is it possible, not unlike when bobby kennedy was the attorney general, that there was a get hot squad there, i wonder, honestly, whether there's a get big tech squad within the justice department. >> i can assure you that no such

thing exists. we follow the facts and the law. we are about rule of law. but i think it's important to kind of dispel this notion, we want companies to compete, we want companies to succeed. we don't bring very many antitrust every year, it's a small handful, and we only do so when the facts and the law support it. i spent about two weeks ago i was out in the bay area, and i spent time with vcs founders from across the technology industry, and what i heard was that they overwhelmingly support our tech cases. why? because they want to build and invest in businesses that have the opportunity to succeed, and become durable and thrive on the competitive stage. that's exactly what we want to promote, and that's exactly why antitrust enforcement exists in the first place. we're not interested in regulating companies, we are interested in making sure that the competitive market works so that the market can pick winners

and losers, not the government, or anyone else, or a monopolist, for that manner. >> the government bicced intel as a winner, in a different branch, that's not working out well. maybe the government shouldn't be picking anybody. >> i'm talking about antitrust law and marketplaces. >> i understand. >> yeah. >> now, in terms of going back to nvidia, it has a very large market share, grown over 20 years, of a superior product. can you just say, you know what with that level of market share, we have to look into it because that's not right? >> so, market share alone does not necessitate or require us to look into a company or do an antitrust investigation, what we care about is whether a company that has a degree of market power is using that market power to squash out rivals. so, one of the common themes in a lot of our cases is not the monopolist making changes to its own product, it's the monopolist telling others what they can and can't do in the market, the

monopolist is functioning as a regulator, a lot of investigations and cases, whether it's technology or concert tickets, deal with monopolists imposing requirements and restrictions on how others conduct business. >> mr. kanter, the case you won yesterday was actually begun under the trump administration, but you have a number of other important cases, the add tech one against google, the ftc as well that are ongoing, if there is a change in administration, what are your expectations in terms of the fate of those ongoing cases? >> i'm focused on today. i am a sitting government official. i can't talk about elections, or prognosticate about outcomes. what i can say is there's broad support for the work we do, and that broad support is because we are delivering results, not just for consumers and for workers, but for other businesses. we hear all the time, whether it's in health care, and small health care providers who are concerned about the role of big

insurance companies, or in agriculture, farmers, small business owners who are concerned about the role of meatpackers or seed producers, whether it's in airlines, and smaller airlines or consumers are worried about the skyrocketing cost of aviation, media companies who are worried about the ability to have return on investment from advertising, or subscription services, across industry we're hearing that businesses care about antitrust enforcement because they want to compete on the merits. >> okay. mr. assistant attorney general, does it play any role in the justice department that these are our finest companies, the companies that have competed on a world stage, the companies that can rival china, if not beat china, or is that never considered? is the worldwide need for strength with our companies ever considered as a factor with the justice department? >> let's be very clear here. our system in the united states is based on free and open

markets, open markets require opportunities to compete. our great companies become great because they have to compete, because they have to win business from consumers day in and day out. we want those competitive forces, those juices to make our companies better. and that's the basis of our system. that's why it's so amazing. but if we have a small number of national champions that are the only representatives of the united states on the world stage, then that is anti thet call to our free open market system, we want the new invaters, in california, iowa, ohio, pennsylvania or new york, bringing new -- or anywhere else in between, bringing new products and services to market day in and day out. >> once again, mr. assistant general kanter, congratulations on a very big win for you and the justice department. thank you for coming on "squawk on the street." >> thank you for having me,

great to be with you. good day to have had him. interesting conversation, jim. let's get back to the markets, we start trading two minutes from now. take a look at futures if you want, we are expecting a higher open, a bit of a reversal from yesterday's significant downdraft. that said, you can see, nothing like the numbers we saw in reverse at this time yesterday, although, again, can't be stated enough, we did come well off the lows of the session. >> i want to see the banks do better. banks -- that's the ep center of the -- there's a recession, there will be credit problems, but none of us have seen this yet. >> no. >> and people are just saying, they're presuming it, i'd like to see the banks go up and the safety stocks go down, but i don't have that. for instance, this morning, ken view reported a a good quarter, that's a pure safety stock, that's going up much more than i thought, celsius, which reported a good number, barely going up. so we have to keep track of what's going up, and what's not, and we do actually strangely want interest rates to go higher, bonds go lower,

signifying there's no real crisis. >> to your point the banks again came off the lows yesterday, but it seems early perhaps to be worried about credit concerns and i'd also point out bank of america upgrades apollo. i pointed to that a number of times. >> that was important. >> it was down 21% in three days, that stock. i did point to it a number of times, but again to your point, the banks and the alternative asset managers, particularly those with a very important place in private credit seemed to be suffering from a concern about a deterioration in credit quality and what that could mean. too early to be worrying about things like that? >> i think too early. we had good numbers, two dividends, more than just declaring one, it declared two, we have simon properties, these are commercial properties, not the achilles heel, they're both very, very strong. david, i will come back and say, wow, mr. kanter, that's worrisome, if you're an investor in that. while you said there is no get tech squad, and scoffed at my

view, i think there's a considerable number of people who are not venture capitalists who are saying that justice and the ftc have it in for big tech. if jensen long has 80% of the market, there must be something wrong. he said that's not true. but that's prevailing. >> we heard that. we'll see what the remedy is. it's the opening bell here at the big board. cnbc realtime exchange, it's going to have a lot more green on it. and the dream project, nasdaq, a biotech focused company, neurological diseases, you know, a bunch of earnings as well. we want to start there, jim. >> yes, i do. start with pal len tier. >> let's go. >> the reason i did that, by the way, carp always has a great -- >> yeah, alex carp, ceo. >> he did talk about the notion, it's a little strange, of

self-pleasure that the guys who don't know what they're doing. >> excuse me? >> what was that? >> i'm reacting to -- >> really? >> yeah, i tell you, he does a -- he has kind of an odd conference call. it's always exciting. >> i'm sure it is for him in particular, sounds like. >> no, he's saying the opponents are -- but the a.i., the a.i. here, it's all a.i. and we have this one scheme, we have a scan of thought from journalists, which is saying, look a.i. is a joke, nvidia up a thousand percent, that's over. and then we have alex karp talking fantastically about a.i. is it really a joke? is it really comical? >> of course not. listen, we've made this point many times already during every single earnings report that we got last week and the week prior from the hyperscalers, none, none had any plans to cut back on their capex. >> right. >> in fact, they only were increasing it. >> why don't we talk about that. >> what also is increasing is at least some doubt creeping in

about the ultimate return on that invested capital. that said, you know, the reaction i got today from one investor in palantir, the a.i. trade is real. that was their reaction. >> the critics are engaged in their self-pleasuring. i don't know what to say. >> are you quoting somebody there? >> alex, he did not curse. i was very angry with him that he cursed. i got a lot of kids that watch the program. >> don't -- >> don't go breaking my heart. we're going to play a determinate role in making america its allies again in the world, dominant, they closed 27 deals and more than 10 million, is a.i. really meaningless? i do kind of love him. he founded his company, david, to be a ray of light to america, and what does he really have? he has what's called production

charisma, according to ryan taylor, the chief revenue officer, it's production charisma. first time i've heard of that. i didn't get to ask mr. kanter about production charisma. that would have influenced the ftc, that's better than the self-pleasuring i'm reading about. what does that mean? >> would you really -- i'll tell you later. it's a little late. might be a little late for you. >>is it an a.i. term. >> a.i. can do that now. >> a millennial, gen z to understand exactly whether that's generative a.i., is it generative. >> would you stop? will you stop? >> accelerating computing. >> enough already. >> is this what a large language model. >> don't go knocking my hobbies. >> let's talk a little uber now. >> nice quarter. >> uber. >> how about how you humbled dara this morning. >> he was a guest on "squawk box," often the case.

>> we have some tape or something. >> we have some things with him talking about the quarter. do we have that, guys? can i confirm before we go to it. >> here we go. >> listen to him, talking about uber's quarter, which as you see is getting a nice response in the marketplace so far. >> what we see for the consumer is the consumer remains strong, especially in terms of their demand for our services. past the pandemic, the spend, consumer spend on services continues to be growing at higher rates than consumer spend on retail and that's absolutely showing in uber. >> all right, gross bookings up 19% year over year. >> it's a recession. >> constant currency, mobility gross bookings as well up. revenue up 16%. >> that's a recession number. people must -- you have to use uber and you have to use uber to bring your food. that's what you do in a

recession. tack on $10 to my good bill by calling uber because i don't want to get out of my apartment. this is a sign that whatever they're doing with the japan carry trade, if they're self-pleasuring in the carry trade, let me tell you something, that's going nowhere. now, david, if japan is down 12 and then it comes back up ten, does that say to you what a mickey mouse market that is? >> yeah, disney is reporting. >> it's mickey mouse. >> no. >> donald duck? >> it's the yen carry trade. >> scrooge mcduck. >> do you need to blow your head off. who does that stuff? >> it was somehow a failure to anticipate, seemingly odd. >> been going on for a long time. >> it was well telegraphed. jp morgan, on another network, jp morgan's co-head of global fx said the carry trade is only between 50 and 60% complete, jim. >> that's what said to me, okay, look, if you want to call a

bottom, you've got to be careful about these people who are not part of our market, don't know simon property, they don't know palantir or uber, or celsius, they don't know rivien. but what they do know is i'd say, rihanna. >> what was that word? >> rihanna. i say let them eat gato. >> okay. want to talk caterpillar now? >> sure, why not. i'm all over it, he's been polite and he's going for earnings, sure enough, he's doing it. the people who brought that up 13 when i said on twitter are you kidding me, are looking like they've been run over by an earth mover. i'm not going to use alex karp to tell you what to do. >> you clearly are fixated on that. >> he's a ray of light. >> we don't need to discuss it

any longer. as wif said many times we had a show on cnbc at 11:00, bob berke witz, he dealt with all of those issues. look at some reruns. >> i used to be on buy, sell, hold. >> you were on lots of different things. >> lots of different shows, bull session. >> i'd like to think i brought you to prominence. >> csx, another one. >> you're done with caterpillar. all you've got to say about it? >> the inventory was good. >> not too bad, is it? >> coming in, i like csx here, joe hendricks, you guys are interviewing him at 10:00. >> morgan brennan, and she will bring that on. >> what i call to your attention is the plastics business, not just because of the graduate. >> yes. >> but because that's what our strength is right now. other than the tech that the get tech squad is trying to stop,

that's facetious. >> right. >> but csx had very good numbers when it came to plastics, our natural gas liquids are ngls, as opposed to ngos, ngls are incredibly strong in this country. >> got apple shares down, jim, do we think that that in any way is -- >> you know -- >> it wouldn't seem to be anything to do with the antitrust case. >> apple pays them 22 billion a year. >> they're not going to any longer. that would be bad for them and that would hurt. >> when i asked mr. kanter, isn't the company that's really hurt, the company that gets the check and did nothing other than have a really good system but their collateral damage, a will the of people feel that the justice is not really looking to help apple. this is very bad for apple. >> it's very bad for apple. >> david, if i told you. >> you're no longer getting a

$20 billion check. >> this could get appealed. it's a three-year process. >> yes, it could. >> i hesitate to think why apple, if they're going to do the deal with chatgpt and now chatgpt has search gpt and i don't know whether you were satisfied with mr. kanter's answer about how there are, at the time, there was no real competition, but he's not concerned about new competition? >> right. >> i think that that's not going to be the case when they get to the appellate court. >> that's always one of the questions you get about these kinds of regulatory actions, technology moves very quickly, by the time you get to a remedy, the marketplace has changed dramatically because they stretch over so many years. >> that's what i think is going to happen. would i sell apple in this? no, you've got the twin, warren beca buffett, and mr. kanter, correctly said winning, and correctly saying, listen, that check from alphabet to apple is anti innovative. so, that check would go away, if

the courts agree, and that would really hurt their eps. >> yeah, any number of scenarios outlined in coverage, maybe you'd get a menu to choose who you wanted in terms of your -- for your tool bar search. >> absolutely. >> things of that nature. >> but apple has been -- >> early to say, again, as we pointed out, while they'll talk remedies, there's appeal and this will go on potentially for years. >> put it this way, if you are an investor in those companies the decision is poorly timed. >> right. >> because these are big cap companies that matter tremendously, and i would say it's actually better for alphabet than people think. mr. kanter did not feel that way, but remember, i'm approaching it from the stock, he's approaching it from the law, they're very different. >> very different. you mentioned lucid, the stock is up, and you talked about rawlinson, what happened there? >> he got the lifeline from the same people who many people feel wrecked golf. and the people i talked to --

they wrecked golf. >> the public investment fund of saudi arabia, $1.5 billion. an awful lot of money to get to profitability. >> that's why we think that rivien isn't the big winner, bmw, really huge. david, look, both those companies, i think people felt had the death rattle and we no longer feel that way. can i give you another one that's shocking that people are saying. >> please, talk to me. >> take a look at yum. >> yum. >> all right, i will. let's talk about yum. >> they are going out. >> are they really? >> you get -- >> have you been out with somebody who's been on glp-1s, you know how much they eat of what they're given, about half. >> like birds. >> about half. are you going to eat that? >> really? >> they eat half of what's on their plate. as you might imagine, there are some very sophisticated

investors and hedge funds that look through the data of credit cards and can figure out or are given sets of people on glp-1s, they don't go out as much and they don't drink as much. >> they lead sad lives because they take a drug. >> you know what else? >> self-pleasure. >> gamble. they don't gamble as much, jim. they don't gamble as much. >> they have very unfulfilled lives. the nasz dak is going lower, and i think it's important to say that the justice department, their decision to downgrade a couple of tech stocks is really hurting. >> that's now negative territory, alphabet down, amazon down, we've talked about that. >> don't try to call the bottom in tech. it's too early. it's too early. domino's pizza, their british arm had bad numbers. there's the -- just to go back for yum for a second, so they

don't want fried chicken with glps? >> they don't go out as often, they don't eat as much. >> do they watch the olympics? >> amazon would say they do, and -- >> we'll know in two days. eli lilly's stock was up. >> total caloric demand is down in the country as more and more people adopt glp-1s. >> we'll be a better country. >> what do you want to own? >> how about things unrelated. i'll own a snack food company called -- because they have everything bad and they're still a company that wants to buy them. >> choose the right time to sell. >> amen. >> don't have anymore updates for you. trying to monitor this, and get back to the many of the -- you told me it wouldn't happen originally. >> smucker bought twinkies, and if mars wants to buy the leading snack food company, people who don't snack, don't go out and

have miserable lives. >> they don't have miserable lives, they feel a lot better, they're healthier, have much better health outcomes as a result of no longer being obese. >> have you ever had a rice crispy bar. >> never appealed to me. >> really? >> but i've had my share -- >> i went to get rice cakes and they sent me to the rice crispy aisle. have you seen the natural food aisle in walmart. >> i haven't been in walmart for a little bit. >> name me one walmart you've been to. >> first of all, i've been to many walmarts, i did two documentaries. >> the age of walmart. >> my father's favorite. >> there is one not far, i do occasionally head the wall mart. >> the prices are low and they have a great variety and they actually have some desires for very -- >> great deal on malomars early in the season. >> 'tis the season. >> sometimes you can get them at a great price. >> how is walmart doing now that you recommended it?

walmart, up 40 cents. how is that kanter stocks? >> the kanter stocks. people don't understand that the justice department is gunning, and they're gunning for great companies, and we have to take it into account. >> i wanted to mentioned builders first source to you, it's not down that much. it was down earlier, the company out with numbers as well. in the market it was down lowered fiscal year 24 guidance. expected to be between 2.2 and 2.4 billion, prior, was 2.4 to 2.8. 12% cut from the midpoint. >> people knew that was coming. >> a name you talked about. >> fastest growing companies in the world. last night ware houser, said the renovation business is not good right now. remodel and renovation, bad, and when you look at builders, you have to say to yourself how do they even come back with that number and a billion dollar

buyback given the fact that renovation and remodeling are very weak, does matter. >> yeah. >> we continue to buy lots of land and puts solar on that land. >> who does? >> ware houser. >> i'm looking for the fox release, the stock is up. >> fox? >> yeah, you know, fox, they own a broadcast network, they own fox news, they own a competing network, and they own a lot of local stations and a broadcaster. >> i like next -- >> there it is. >> wow, look at that? >> i can't get my hands on the release. >> that's a quite a good chart. >> it's interesting, of course, murdock in that interesting feud, right, where the irrevocable trust, trying to change the irrevocable trust, it was irrevocable, so it's hard to do that. >> really hard to change that. >> what would happen under the trustees, i guess, what would occur potentially would be -- >> everybody has to sign an

agreement, both sides. >> i know. >> both sides have to sign that in order to get that. >> it's pitted -- >> i've been in one of those. >> pitted loughlin against his siblings, that said, good number. different strategy there, but not about streaming, they're just about news and sports. >> and the election is going to be great for them. >> yes. >> because of the amount of money that has to be spent. typically, now, in pennsylvania now, shapiro didn't get the nod. they have to just flood pennsylvania. >> it's true. i know, it will be interesting to see what they choose to do there. she has plenty of money with which to do that now. >> yes, she does. >> having raised over $300 million. >> as i said, tony west would be integral, her brother-in-law, who's taking leave from uber, and andrew ross sorkin mentioned will he come back, and dara said absolutely, i believe if ms. harris wins the presidency, i would expect tony west to not return. i would suspect he would have a

key role, i'd expect him to be in the justice department. he was the number three person in the justice department. >> he was. >> i don't know if he'd do it -- tech squad. >> we can take a look. the s&p is up, but, you know, nasdaq barely in positive territory at this point, had been down a bit. >> woe is me. >> we've been talking about the names. give you a look at the bond market, before we head to break, treasury is very important overall here as you might imagine, particularly given yesterday when we saw the yields bounce on the other data we got a bit later in the session, that ten-year still 38, we saw 3.6 and change. >> could be helping the builder source. >> we got two-year trading at 3.9. we're back in an inversion. we've got a break coming up here real quick and then we'll be right back.

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coming up, carl's got more from the olympics in paris . >> there's that famous balloon from opening ceremony and the olympic flame at the louvre. one more stunning example of these summer games. cnbc's coverage continues live in just a moment.

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royal caribbean which is good. >> you think the talk about recession is overblown. >> totally. the stock market is led 50% of the advance is led by a couple of stocks, and there's a lot of people who feel that nvidia is now become the helpless giant that everyone is after. nvidia was the linchpin for the rally. >> a lot of it and the engine behind a lot of others. >> the idea ai is not playing a role when you have palantir and saying there's huge orders with ai, servicenow, huge orders with ai, i believe that salesforce will say huge orders. amazon is using a lot of ai and apple tied in for microsoft with ai, search gpt being developed as of july 25th. those who think that ai is not real and does not -- is not additive will be left behind. >> you're not alone in that as well. what do we got on the big show? >> a company that has not surfaced in a long time. international flavors and

fragrances. one of the great blue chips of the last century that is making a terrific comeback, so i can't wait to speak to them. >> awesome. >> congratulations in the justice department. that's a big win. >> it was a big win yesterday. >> and by the way, just so you know, people use mr. cantor from paul weiss, remarkable job. i've used paul weiss all my life. the justice department has great lawyers. they really do. >> thanks, jim. >> thank you. wow, david, thank you. that's the nicest thing you've said to me. >> don't get too excited about it. >> david, i'm going to go be with myself. >> that's the theme of the show. all right. we've got more on the markets. we're going to leave that other topic behind i think in the next hour and keep it here. at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you

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good tuesday morning. welcome to another hour of "squawk on the street." i'm david faber with morgan brennan. we're live from post nine at the new york stock exchange alongside carl quintanilla who is live from paris this hour. we'll have the latest from the olympics, sara has the morning off. quick look at markets. we are rebounding ever so slightly to some extent given the significant selloff we suffered yesterday. the nasdaq had been in negative territory a few moments ago but rebounded as you see with the s&p climbing towards as much as 0.85% gain. >> 30 minutes into the trading session. three big movers we are watching. shares of caterpillar losing its early gains after topping profit expectations, revenue sliding 3.6% year over year. more on the quarter later this hour. we are up about 3.5%. uber rallying after beating estimates. revenue rolling in at $10.7 billion, higher than expected. ceo dara khosrowshahi telling cnbc earlier, quote, the consumer remains strong leading

to higher than expected bookings the second quarter. take a look at shares of palantir surging after its latest report which came in overtime yesterday, the ai and data analytics company raising its full year revenue forecast and beating on every metric for q2. a positive sign for investors who have been skeptical about whether this ai trade is losing some steam here for palantir specifically. the u.s. commercial business up 55% and you saw a re-acceleration in the u.s. government business as well. certainly a sign that big consumers are taking to their ai products here. their shares up about 9%. >> all right. let's get back to the broader markets. the s&p coming off its worst day since 2022 following weakness in the megacap stocks. more than $650 billion in market value was wiped out just by the move in the magnificent seven names alone. here to break down the move and

what we're up to right now and what comes next, market commentator mike santoli, little bit of time off yesterday. we missed you, happy you're back now. >> here to survey a little bit of the damage and see how it's responding. the market at the open typically tentative. you don't really know if that kind of forced selling, that self-reinforcing unwind you saw at the open will continue. watching things like the volatility index decline but still at abnormally high levels for indications that is through. decent market bred breadth open. gaining back what was lost in the s&p yesterday. the magnitude of this decline is not that unusual. most years have at least a 10% correction. the speed and character of it, though, have been extraordinary. that's why you have to watch for these aftershocks. we've taken the s&p back to where it finished the first quarter. you've taken the average stock down 12.5% off its highs,

brought it back to where it approximately was six months ago. that's probably constructive in the sense of resetting expectations and valuations. the nasdaq 100 back to about 24 times forward earnings. we were at a bottom in april. it's not cheap. lower than that, 22 times in october of last year. as a benchmark, a mental marker of how much has been done, you know, that has traded as high as 30 in recent years. >> we had this flush out, forced selling, cross currents between asset classes as well. the vix actually peaking at 65 at one point. you were out and missed it. we always talk about the vix, so lackadaisical up until recently. but i think it all raises the question, bob elliott talking about this in "overtime" last week, for stocks specifically it's not a fundamentals problem, it's an expectations problem and those need to come down. >> the way i thought about it saying this a couple weeks ago, you had an excess of certainty going into early july around a

couple of significant things. excess of certainty that we were going to execute the soft landing, that the fed was going to do what the market expected for the right reasons, expectation of the election seen as a highly probable outcome and impact and earnings supposed to come through. all of that happening. you have this favorable rotation towards the rest of the market. everyone got hoodwinked thinking that could be a frictionless handing off of the baton. that rare works. the spike peek peak in the vix is important. now it's about whether it recedes from here. we have headwinds to deal with as well. >> stick around. before we turn back to the markets let's get to our meghan ka cella at the brand new desk following the democratic vice president selection. >> nbc news reporting that vice president kamala harris has chosen minnesota governor tim walz to be her running mate. this is a move to bring someone on to the ticket with extensive

governing experience. 12 years in the house of representatives before becoming a two-term governor in minnesota and progressive policy credentials. some of his work in minnesota included spending billions on initiatives like affordable housing, free school meals, tax credits for low income parents and also banned nearly all noncompete agreements and cut down on junk fees and pushing for more transparency in drug pricing. so this is a big win really for progressive voters and donors in the left wing of the democratic party who waged a campaign in support of walz over the past couple days. he also became sort of an internet darling during the vp search process and gained popularity with young voters whose support could help the campaign. despite his progressive policy, he presents like a moderate. former military veteran, hunter and gun owner and casual and plain spoken and there's an effort here to try to appeal to blue collar voters in rural areas in the midwest where democrats have struggled in recent elections. his policy resume will play into

arguments from the trump campaign that democratic ticket is ultra liberal and already out with a statement branding walz as a radical leftist and extremist and largest pac highlighting one of the largest pandemic fraud schemes involving $250 million in federal funds happened in minnesota during walz's tenure. just a flavor of the opposition campaign to come over the next few days as everybody digests this candidate. >> meghan, thank you. meghan ka cella in d.c. turn back to the markets and joining us goldman's chief global equity strategist peter oppenheimer and mike santoli who remains. peter, you know, globally speaking, as you do, what can you tell us about the impact we've seen from the unwind of the end carry trade, how far it has to go and what you think about the impacts it's had on markets over here? >> well, i think that the setup of this correction is important for context.

bear in mind it came after one of the strongest first half of the u.s. equity market in many decades and since the trough of the markets we saw last october. global equities had already risen by about a third and the nasdaq by about a half. we'd seen this tremendous rise. a lot of complacency built into the markets, really, as a function of optimism about ai. in the csense this correction ws healthy and somewhat inevitable after a long period without a pullback, particularly as you started to get some signs that the u.s. economy was slowing. we'd already seen good evidence that was happening in europe and china. my feeling is that this correction while stabilizing is not over. we'll see choppy environments in the short term, as investors really start to calibrate and get more confident again about

the direction of interest rates in the economy, but at the same time, i think we're not in a bear market and there are going to be opportunities there. >> all right. so a little bit of everything here. you know, mike mentioned earlier the multiple on the nasdaq, for example, has come down. it's around 24 times. is that enough to encourage some who might otherwise not have taken a chance to say okay, fundamentally at least it seems like a decent entry point? >> well, i think it's probably not come down enough. the u.s. equity market broadly has margin nated in valuation a little bit. it's right on top of it on its long-term range, that's true whether you exclude the largest tech stocks as well. now, admittedly, lower interests as they come through and the markets are expecting that now, will help to stabilize the markets and valuations, but i think we could see a bigger shakeout in valuations before you really start to get value investors seeking out as a good correction opportunity. >> mike, we've seen in the last

24 hours, quite a bit of fed soothe saying. a market that has rapidly move to price in much more in terms of rate cuts before the end of this year and even steve liesman this morning sharing from his own reporting that perhaps 50 basis points is now on the table in september. wouldn't necessarily take a recession or a growth scare to get there. it's just the fact that fed's forecasts are now playing catch up to what we're seeing in the data. how much does that matter here? >> that's right. i think solidifying around perhaps a september cut, not an emergency cut, before that, and 50 basis points does make sense, because the market recognizes usually that once an easing campaign begins, it's the beginning of a series and if you look at the gap between the fed funds rate at 5.38 and where the two-year yield is trading it's massive. fed is late and has more to do. i think that's fine. i don't know that we can go to the historical playbooks and say here's how the market behaves because it hasn't conformed to those patterns to this point in

terms of how we've traded into the first fed hike, bottoming when we're still tightening, but i think it would take the pressure off if the consensus coalesces around that idea. by the way, rate sensitive parts of the market already responding. you see utilities and you see home builders and reits and things like that out perform. >> yeah. peter, is that what you buy right now with treasury yields having come off as much as we have or are we going to see those inch back up? >> no, i think as mike said, as the market is now fully pricing a series of rate cuts and that has already begun to help interest rate sensitive parts of the market, but i think defensive quality companies whether they are in the growth space or value space, are still likely to hold up better and provide a better risk-reward, as you go through this period of market discovery of how big the risks to the downside on growth really are and how quickly the fed and other central banks will

cut rates. you know, i think we are going to get some good buying opportunities here and clearly we've seen some value beginning to emerge, but i would expect to see some better opportunities to come in to take advantage of those as we see some more volatility in the short term. >> peter, thank you. mike, see you throughout the day. thank you. as we head to break, here's our road map for the rest of the hour. bitcoin plunging alongside stocks yesterday. micro strategy's michael saylor is buying. why he's still bullish after the break. >> a closer look at alphabet after a federal judge ruled that google has illegally held a monopoly in two market areas. >> and "squawk on the street" heads to paris. let's get to carl with more on what's ahead. >> week two of the summer olympic games in a city noknown for some of the greatest artists at the louvre. now the site of the greatest

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thanks for being back. >> thanks for having me. >> we did see this mini crash in bitcoin yesterday. it's traded as a risk on asset, at least one technician i've spoken to in the last 24 hours said we're range bound up to 61,000. what's the next catalyst and what praex it out? >> i think the events of bitcoin 2024 in nashville a few weeks ago were just very catalytic and the market inflection for bitcoin. you had presidential candidates and governors, you had senators, you had house members, you had ceos, billionaire investors in the audience. senator lamez presented a bitcoin reserve bill and that's our louisiana purchase moment. what happened there was we -- the window shift. now it's possible to discuss nation states holding bitcoin on the balance sheet and if nation states are going to buy it it's reasonable for institutions,

corporations and individuals to buy it as well. >> former president trump got behind the idea too. it's a good idea. you think a strategic reserve for bitcoin is a good idea? >> well, thomas jefferson purchased the louisiana territory for $15 million in 1803 and nearly doubled the size of the united states. seeward paid $7 million for alaska, has a trillion dollars of oil underneath it. everybody is going to be doing business in cyber space. bitcoin is scarce desirable digital property, a great idea to trade a little bit of currency or paper for some place that billions of people are going to want in 100 years. i think it's a great idea. >> interesting. i mean i feel like there's always been this ethos around bitcoin and crypto currency in general decentralized digital gold, you called it digital real estate, a hedge against inflation, hedge against government spending too much money, for example, so the idea that governments would be holding it seems like it goes

against that. >> you know, it's desirable property and if you're capitalizing a country based upon scarce desirable property, buying manhattan, buying the united states, buying alaska, anywhere you can do business, it's the basis of the great empire. no, i think it's a good idea for a nation, but it's an equally good idea for a cooperation, an individual, a family or the like. >> okay. so bitcoin and crypto currency is on the ballot. what's at stake then in november ? >> what you have is two constituencies. traditional finance and traditional finance operates 19% of the time. it costs $40 million to take a company public. there's no credit, no liquidity on the weak end. bitcoin represents a different thing, and it represents the 21st century. so i think the millennials are

looking at the world today and they think, electricity, water, elevators, the internet, they operate 100% of the time. bitcoin operates 100% of the time. why are we stuck with 20th century banks, money markets and capital markets that shut us down at 4:00 p.m. on friday, don't open up until 9:30 on monday? if we did that to your to your food, water air, it would be considered cruel and unusual punishment. >> you're buying more here and raised more debt to do that in recent months. filed last week to sell more shares. how does this strategy continue to play out? >> micro strategy's bitcoin development company, we're an operating firm that means we have some advantages over a trust company. we've got permanent capital, can again rate cash flows, operating flexibility. our shareholders want more bitcoin per share. they think if we get more

bitcoin per share that's creating shareholder value. that means we're pursuing btc yield whenever we can do a capital markets transaction. it's a creative and creates more bitcoin per share we'll do it. we have an ability to sell premium into the market, issue convertible bonds, to generate operating cash flow. we're just going to keep generating more bitcoin per share any way we possibly can by selling the volatility of the asset class and then sweeping it into the underlying asset. >> founded as an enterprise software company, business intelligence, micro strategy. that business has enabled the build out of the book. can the core business continue to generate enough cash flow to support the business or support bitcoin and the business there given the fact that revenue has been stagnating? >> the business is stable and it

is a cash cow an we have a lot more room to issue debt based upon that cash flow, but we've also got options like convertible bonds and equity and the like and some other strategic alternatives that will allow us to continue to raise capital to buy bitcoin. we're -- >> michael saylor. >> thank you. >> michael saylor, thank you. still ahead we're going to head to alphabet after google lost a major antitrust case involving search with its partner apple. we're back in two.

ja . it's one thing for companies to engage in commercial legitimate interactions and another thing to pay somebody for exclusivity, to pay somebody with a requirement they don't work with a rival. those are the kinds of issues that when you have massive amounts of monopoly power can violate the law. the law is pretty clear here, and we brought those facts, we explain why it was a problem, why it harmed competition, and

ultimately we succeeded in convincing a court and we have a very lengthy detailed opinion that explains all of this. >> that was the department of justice assistant attorney general for antitrust jonathan kanter who joined us to discuss the landmark decision where a federal judge ruled google violated law by stifling rivals when it came to internet search. shares of alphabet and apple which had been down as much as 2.5% earlier. alphabet's main payment every year is around $20 billion to be the default search on apple device, a big number that comes into apple for having a lot of people who carry those devices around. >> a big number that could potentially change here. you have to wonder what it's going to mean for the other players in search trying to take on a little bit more market share like microsofts of the world. we know alphabet is going to appeal this decision, but we know that we've been talking about the possibility of

regulatory risk for the megacap tech names for years and you're starting to see it come to fruition. another case pending right now with alphabet. there's cases with amazon and meta. so how does this now set a precedent? >> yeah. the advertising case continues with the doj in terms of alphabet. interestingly, this case was originally brought by the trump administration, but taken to fruition by the biden administration. and to your point, there are plenty of other cases the ftc coming after amazon. it's going to take a while, though. it's going to be years before the appeal is potentially heard. the next step according to cantor, there will be a conference around remedy but even the judge may decide on remedy, after he hears from all sides and does that it's not clear to me, but it's not clear what the remedy will be and you will have the appeal anyway. it's not going to be in place. >> it's fascinate too l.

consumers are not directly impacted about i this. your data is paying for this and footprints across the web, but it's an antitrust issue across the companies looking to pierce this part of the market, but it's not something that has resulted in higher prices or issues for consumers in a direct way either. to me, i'm not a lawyer, but somebody watching, it sort of represents a shift to me in terms of what we're seeing with these cases versus ten years ago. >> they would say it stifles innovation, preventing competitors from being able to access this number of devices that apple has and is being paid for by a company that can afford to do so. but as we mentioned many times when it comes to technology in particular and antitrust congrat regulation the cases take so long and the technology moves so quickly. we'll see whether that proves to be the case. some entrants are coming to the floor, chatgpt with its own

search engine or search product. >> more will be revealed in the meantime, stocks are reacts aing to this. still ahead this hour, the ceo of csx with his read on the broader economy after a quarter that saw volumes grow. and as we head to break, check out shares of kenvue. the j&j spinoff a top performer in the s&p 500 today. the maker of benadryl and tylenol clbiimng, almost 14%. we'll be right back.

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it's piled high with tender beef that's slow cooked and smothered in tangy memphis style barbecue sauce. it's no fuss, no muss. just tons of flavor. the best barbecue beef is only a togo's. try one today. welcome back. i'm bertha coombs with your cnbc news update. the national transportation safety board opened a hearing this morning into the midair cabin panel plowblowout on a bo 737 max 9 in january. the board released 3800 pages of reports and interviews from the ongoing investigation. that hearing will take place

over two days. bangladesh's president dissolved the country's parliament today setting the stage for new elections one day after the long-time prime minister resigned and fled the country. it comes after weeks of deadly protests in that nation. some senior military positions were also reshuffled today. demonstrators have said they would not allow a military-backed government. and new york city's comptroller is calling on independent presidential candidate robert f. kennedy jr. to pay 24,000 after he admitted to dumping a bear's carcass in central park ten years ago. the comptroller says that's how much it cost to dispose of the bear's remains. back over to you. >> i have so many questions. all right. bertha coombs, thank you. we're checking in on stocks about an hour into trading. you can see there's a lot of

green on your screen as stocks try to make a little bit of a comeback here. we've got the s&p up 1%, 5239 the level there. the dow up 318 points. the nasdaq up 0.7. this is after a huge selloff yesterday. let's get to dom chu with a closer look at one sector that is rebounding in particular today. >> let's take a look at what's happening with the state of play right now sector wise on the leader side of things, more of the value oriented sectors doing well. industrials, real estate and financials are among the leaders in the market rebound so far today. meanwhile, energy and communication services, a bit of a laggard. alongside that key sector which is technology. if you look at that technology trade the semiconductors in specifically, are the up with that are kind of getting a lot more attention today. the van neck is up 1.5%. trying to bounce back. the gold line is the longer term 200-day moving average trend line. we're hovering a little above that $210 the level that some

folks are watching. we haven't touched that level going all the way back to the fall of last year. check out the biggest one of them all nvidia 3.5% gain. broadcom up 1%. advanced and super micro on the downside. qualcomm rounding out the group. the semiconductors nvidia though remember bigger losses yesterday, david. we'll see if it can hold these levels. i'll send things back over to you >> keeping a close eye, thank you. we'll stay with tech the group trying to make a comeback from what was pretty massive selloff, the mag seven down nearly 9% since the start of the month. in the group as dom mentioned we keep an eye on shares of nvidia, down around 17% over the last 30 days. stock is a top name in several of our next guest's funds. she tells us she's not worried about the shakeup. portfolio manager. nice to have you here. >> nice to be here. >> microsoft and nvidia, amazon,

apple, another fund, nvidia, amazon, meta, apple and another microsoft, nvidia, meta, apple, alphabet, some of that in a moment, but we heard from earnings. nobody is pulling back on capex, but there is a larger question among some investors as to whether that will be well invested and generate the necessary returns. you believe it will? >> i do. and in part because if you look at first of all, if you look at just microsoft's azure numbers, they went from being a zero dollar business seven quarters ago to having a $6 billion run rate today. i would challenge anyone to tell me what other business grew from 0 to $6 billion in year and a half and that is just the early, early innings of this ai trade. and so when they see the opportunity, you know, this $6 billion business inside of two years will be close to $20 billion in revenue. how much capex do you need?

so, you know, the capex actually makes a lot of sense to me because the demand that they are seeing and the pull that they are seeing is significant. if you look at individual kind of ideas of how and how productivity will improve because of ai, there are so many different examples. we just talked to a pharma company who saved $70 million because they started to use chatgpt to help them formulate kind of the packaging that plastics were in. that's an almost infinite roi for them. we think they're very early on and we have to remember chatgpt kind of exploded on to the scene less than two years ago. and it's already on pace to make significant changes to productivity. >> right. >> i don't know. i think there's like a much worry about nothing.

in part because i don't think people believe the productivity increases, but we do. >> it may be time to see that. these stocks had an enormous run until recently and the p/e ratios now differ somewhat. i note you have them all in your portfolio, so are you not that worried about some that may be trading at higher multiples than others in terms of at least the underlying earnings growth? >> i mean i would say for a majority of them, albeit not apple, that the p/e ratios are actually quite interesting, and i mean you look at -- when people talk -- >> interesting means what? sorry. >> they're not actually that highly valued because when you are at the beginning of a cycles significant as this you cannot look at the next 12 months in earnings. you have to look out and say what is the earnings power of

this business in a fully blossomed state. even if you look out to 2026, microsoft in our opinion trades at kind of a 20 to 22 times multiple on earnings. today meta trades at a submarket multiple. so to us that doesn't feel very bubble-esque or over aggressive in valuation at all. >> i wonder what you think about the application layer whether we're starting to see the shakeout of winners and losers above nvidia and hyper scalers of the world because we had palantir earnings last night, 64%, which is wild for an enterprise software company and i spoke to alex karp the co-founder and ceo, and he said, ai has exposed the rot and fraud of many software openings, and he said very few people have figured out how to do this in a way that is financially viable. the people providing it become profitable. so the single most important number for their palantir ai

narrative is that they are profitable and revenues are going up. you can see shares reacting positively to that today, but that has not been the case. there's been a lot of skepticism among investors about the return on investment especially in that software piece of the puzzle. so how are you thinking about ha? how do you invest for it? >> so we actually have a broader thesis on the cost to create and how it's going to affect software. and, you know, existentially there's going to be software companies that will be under threat in part because they're point solutions that could be recreated at a much lower cost point, and so over time, their margins and revenues -- this is particular to those companies that don't have a platform upon which they can grow. i half agree with this statements in that it will kind of weed out the winners from the losers, this ai revolution.

i think that the great companies like a microsoft or a servicenow are going to be able to provide that solution and show the productivity to their consumers. so, you know, i do think that there is a -- what we're seeing in software today a little bit of a reckoning of the market starting to understand that as the cost to create declines, there will be margin pressure across the board, except for a select few. >> we're going to leave it there for today but look forward to having you back as well. thank you. >> thank you. >> as we head to break, let's turn back to carl in paris with a look at what's still ahead in the show. carl? >> morgan, we've talked a lot of sports the last couple days, basketball, gymnastics and swimle. we're going to highlight what might be the hottest ticket at these olympic games when we continue live from paris.

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tax smart investing today, helps to build a stronger tomorrow. at pgim custom harvest, our unique direct indexing approach seeks to help investors achieve better after-tax outcomes. pgim investments. shaping tomorrow, today live from the nyse and the xxxiii owe lee pe -- olympiad. here's carl quintanilla. >> welcome back to "money movers" as we continue our coverage live from paris.

"squawk on the street" i should say. of all the images maybe the biggest is beach volleyball perhaps the hottest ticket to get at these games. only named as an olympic sport back in 1996. and we do have contenders today. the men andy and miles are going to take on qatar tomorrow. we do have kelly and sara on the women's side. they'll take on switzerland in the quarterfinals today. only two american pairs remain in that sport. we actually caught up last couple days with keri walsh jennings who won gold three times with her teammate misty may trainor and talked to her about why the sport remains such a draw. >> the world has always embraced beach volleyball since the beginning. once every four years we're the best thing in the world and everyone acknowledges it and loves it. the number one ticket at the olympic games an we fade away. i want to fix that.

it's undeniable how positive the sport pizp that's what olympics is all about. i love the olympics bring us today and beach volleyball uniting america because the teams are so strong here. i've been blessed with great olympic experiences. >> you can't compete with the backdrop of the eiffel tower and the venue for beach volleyball at the base of the tower. david, that's one theme, though, that we keep hearing from athletes is that a lot of these sports you get a burst of enthusiasm around the olympics and then it's kind of hard to sustain in the interim before the next olympics. although with a lot of these women's sports in particular, we talk about this the tailwind of revenue into the wnba and have our eye on other women's leagues, maybe some of those will be able to sustain interest in between competitions. >> yeah. i think women's soccer as well. the franchise just keeps going up in value.

does she have a plan or anything that's out there that i'm unaware of in terms of beach volleyball? >> well, i think, obviously, the topic de jour once these games will be santa monica, l.a. she's from santa monica. l.a. 2028 some argue may offer the best possible beach volleyball on the planet. even with all the success of the paris games, i think we're already getting that and this happens every round, what's on the line for the next city. milan is in between, of course. when talking summer games how will the next summer games compete. cycle after cycle we continue to hit highs, so to speak. >> yeah. great coverage out there. can't beat the backdrop. got the eiffel tower in your background as well. definitely a live shot of the day. after the break, an exclusive with the ceo of csx. what the freight operator's latest results could be signals for the economy. we're ckn o.ba itw it's time w your business. create a website.

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president. he joins us to talk about earnings and more. it's great to have you on, joe. >> good morning, morgan. we're glad to be with you. >> i know you're navigating some hurricane impacts here. recession fears, they've been ripping through the markets in recent day, although maybe a little calmer here today. how would you characterize the demand environment right now? >> yeah, i would say it's mixed but generally positive. the chemical business has been up year over year, intermodal. housing lately, autos, some metals and steels have been down lately so we're watching that carefully. we see a strong second half of the year, the things we have visibility to. we're still feeling good about where things are. we have meaningful margin expansion in the second half of the year. that largely comes from the back of holding costs flat. >> listening to you, it sounds like you think soft landing

thesis is still intact? >> i think so. we're anxious to see what the fed does in september, to be sure. the auto industry, watch that very carefully. in july we saw shipments throw down a little bit. watching that one very carefully. as you've seen the steel companies come out with their earnings, announcements, not a great year for them. those areas we're watching carefully but we expect a strong harvest in the fall, which will be good for us, chemical is strong, export coal business is strong, aggregate construction is strong. mixed but generally positive. >> the steel piece of this and the metals piece, that's particularly interesting to me. we know a lot of government money has pushed out into infrastructure, pushed out into other things like i.r.a., et cetera. have we seen the peak in terms of these infrastructure projects? should investors think that spending has been deployed?

>> we're still seeing on construction, aggregate, rocks that goes into. consumer is more driven more than construction piece. it's mixed. there's still a lot of construction going on. industrial development is still big and strong in the southeast. i think -- we have to watch the consumer side of this. >> you're expecting low to single digit revenue growth in the second half of 2024. what's propelling it, and more importantly, norfolk southern ceo came on and said to me, looks like we're going to get a peak season, which we haven't had as retailers and other consumer-facing companies rebuild their inventory levels. are you expecting the same thing? >> we hope so. with big customer bases like u.p.s., amazon, they are telling us things look pretty good for the second half of the year.

domestic intermoldal has been down. we're hoping to see that come true in the second half of the year. we still think international and modal will be strong coming into the ports, which is good. driving is chemical, export coal. autos have been strong, aggregates. we expect the midwest harvest to be strong. we see a lot in the future that's good for us. we got to make sure the economy keeps moving forward. >> okay. labor talks at the east and gulf coast ports, those seem to be largely stalled. there's rising risks we'll see strikes by workers at those ports. how are you gaming that out? what does that mean in terms of some of these container flows when you already have die version as way from the red sea and issues in the panama canal? >> for us, actually, we don't see a net negative effect if the eastern ports have a stoppage. we don't expect that. we hope that's not the case. the things that move west still need to get to the east where the population is. that means a lot more movement of rail across the continent

from chicago with us to the east where a lot goes into the ports in the east gets trucked to new york, baltimore, philly, et cetera. it could be a net benefit to us. we don't want that to happen. watching what happens in canada as well. from a csx standpoint we should be okay either way. we're gaming it out. our shippers are doing that as well. for csx we should be in a good place. >> we talked about the meaningful improvement and operating ratio, better efficiency, better profitability. how do you get there? how does pricing factor? >> pricing has been strong on the merchandising side. we see that continuing. it came off a lot of inflation the last couple of years. we have a leading service product and customers are willing to pay for service to a certain extent. for us, the second half of the year is about growing volume and revenue while holding our costs in line. the last couple of quarters our costs have come down. we're seeing efficiency from our whole csx one teamworking well

together. revenue up, volume up, and that's where the margin expansion should come from. >> joe hendricks, ceo of csx. great to have you on. >> shares are up 3.5%. you're worried about a slowing economy. you have to watch the freight flows, among other things. you do have to watch the freight flows. it's interesting you saw it in gdp, this buildup in inventories and we heard more about that from heinrichs as well. we haven't had a peak shipping season in a long time. it's been a couple of years. >> recession fears one of the things this market has been dealing with, even if the latest selloff of yesterday was sort of sparked in part by that huge selloff in japan. worth mentioning the nikkei came back dramatically as well in its session for the day yesterday in tokyo. as for us in our session, we're starting to see significant momentum to the upside, both the s&p and the nasdaq, as you can see on your screen.

up 1.6%. a bit different than we saw at the open. sort of a more tepid response to yesterday's significant downturn. we seem to be building nvidia, meta, amongst the big outperformers in mega cap tech. uber shares up 7% after a strong report, caterpillar shares as well up 4.5%. palantir, as morgan discussed earlier. and i bet we'll be discussing as well as our live market coverage continues right after this.

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it's that easy! call today and we'll also send this free guide. humana. a more human way to healthcare. good tuesday morning and welcome to "money movers." i'm morgan brennan with mike santoli. we are live from post 9 of the new york stock exchange. today markets claw back some losses from yesterday's selloff. looks like we might be nearing session highs. has tech found its footing? we will discuss this hour. the ceo of global foundries issuing mixed guidance as the chip sector tries to make a comeback. the former chief