loss of a lot. a big loss. a lot of items in there and write downs. now we wait for eli lilly to report. it's thursday, august 8th, 2024 and "squawk box" starts right now. ♪ ♪ good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. in a rainy times square. i'm andrew ross sorkin along with joe kernen. becky is off today. we have the u.s. equities to talk about and to talk about how they actually haven't improved that much all around here. dow jones industrial average off 113 points this morning. nasdaq looking to open down 25 points. s&p 500 looking to open down 15 points. this all after yesterday's market failed to hold what was an early rally and the averages

saw the gains melt away as the afternoon progressed. dow on pace for the worst week since march last year. take a look at treasury yields right now. we will show you the ten-year and two-year. i always say the ten-year and two-year. they don't say the five-year and 30-year which we also do. take a look at bitcoin. that is gaining ground. now it's uncorrelated to the nasdaq. >> it's been holding up. >> $57,405. >> the vix closed at 28. that was down lower than that. that is up a little. the ten-year is not showing signs of, you know, fear and angst. the dow is down 13% or 14%. in correction mode. we talked about tuesday --

remember tuesday? big update until the close when it just barely held on to the gains. yesterday, almost got back to some of those and then lost ground. today, i don't know we're out of the woods. >> you said we will be in shaky territory through october. >> you know we're going go from the soft landing and is guaranteed. i felt it. i felt people thinking recession odds are going up. you know they are. >> i also think a lot of this is depending on whether jay powell cuts 50-basis points or 25-basis points. does 50 points mean things are worse? >> you are putting the cart before the horse. it depends on when it becomes increasingly clear that the slowdown is worse than we thought. this is by the end of the year that jpmorgan is talking about. it goes from 25%.

jpmorgan raised the forecast for recession. the bank sees 35%. a little bit more of a 1 in 3 chance of a downturn. it had been 25%. ceo jamie dimon told our leslie picker yesterday, our recession outlook, what they have right now, does come with a lot of uncertainty. >> i'm fully optimistic we have a mild recession, harder one would be okay. of course, i'm very sympathetic to people who lose their jobs. you don't want a hard landing. there is a lot of unsrcertainty out there. >> dimon expressed doubt that the fed hit the last mile in briggs inf bringing inflation down. >> i don't look at the short-term data. the things that are inflationary that are in the future. deficit sending and green economy and remilitarization of the world. they haven't happened yet, but

they are going to happen. >> we will get more data at 8:30 a.m. on the labor market with the weekly jobless claims report. there is some middle ground between a soft landing and a hard recession. i don't know what it's called. it's worse than a soft landing, but not a hard recession. that's where i think we are. >> bumpy landing. >> it could be a mild recession. that's not -- that's almost like a soft landing. it's almost semantics at this point. it is almost like a soft landing. if it is not down -- two quarters of negative growth which is funny term in itself. negative growth. if it is less than 1%, say it is .3% one quarter and .6% the next. jamie dimon is saying people lose their jobs, it's not great, but we can handle a mild recession and not like a real recession. then you have the thing we have.

>> we'll come up with a term for it. >> is this debbie? is this debby? the hurricane? what a horrible name. debby does new york, instead of dallas. okay. shares of warner bros. discovery reported a $9.1 billion write down on the sales. tnt and discovery were down 8% to $5.3 billion and those shares are off another now 13%. shares sitting at 6.70. >> i'll whitestle for that. >> now off 53% for the year. off over half. >> that gets a whistle. >> it does get a whistle. >> the other one doesn't. >> i don't know. >> it's good at this stuff.

is it possible a year or two from now, wow? is it possible it all needs to be done? it's a kitchen sink year with the amount of debt. you buy things like that and the world changes and this is a write down for a lot of the cable networks. i don't know what they're worth at this point. >> part of it is without the nba, the write down becomes a bigger write down. >> yeah. >> you have the carriage fee issue which will come up for them very soon which is an interesting one because it is dealing with our parent company comcast. in many ways, you have to imagine comcast will say to warner bros., you don't have the nba anymore. we will pay you less for tnt. by the way, we're taking the nba on the other side. >> that's what they are saying when they re-value the worth of the cable network. >> it has to with carriage fees.

the likelihood to collect on carriage fees and advertising. >> disney. we will talk to tom rogers about disney. >> yup. >> a quarter earlier than expected, they had a profit. i was looking at that. $40 something million. netflix, the king, i tried to figure out $1.4 billion or something in a quarter. is that 40 times the -- that's 40 times the profits on streaming. disney, all of the excitement of disney plus and espn and all that still has a way to go. is that what we can expect eventually? >> that's the question. part of that is a -- the question is can disney plus become global at that level? it also depends on families around the world, frankly, subscribing to multiple

services. is there just one king or is there a king and a queen or is there an entire? who is the court jester? i don't know. >> we will see. tom rogers has always loved netflix. he's going to be on. he always thought netflix was in the cat-berdird seat. shares of robinhood trading higher with higher profits and revenue. consumer accounts were in line with deposits hitting a record $13.2 billion. in the meantime, google and meta targeting on teens. they are targetting advertisers on youtube. skirting the company rules for now minors are treated online. this is according to the documents seen by the company.

the project at meetta was targed 13-year-old to 17-year-olds with the photo video app. it is labeled as quote unknown in the advertising system which google knew skewed toward under 18s. the documents seen were suggesting that the intent of the campaign was disguised. if true, joe, this isis terribl news. i say true because we have not been able to confirm it and we don't know it. i imagine more is coming out about it. i would love to dig into it to understand the intent. >> business is war. i would not mind it if they didn't act so sanctimony yus. >> sure, they act like sharks.

>> art of war. overwhelming force to defeat the enemy. they don't. >> right. >> it's woke. they combine that activity with -- what's wrong? they combine that activity with this overt, oh, kind and jend t gentle? >> i think they've changed. >> it's elon musk's fault. >> no, i think meta is un-woke and anti-woke. >> you don't know what woke is. how can you know what anti-woke is? you told me that. do you know now? two men have been arrested in austria. was this not inevitable that something like this would happen? when you are that high profile. in connection with the suspected attack on a taylor swift concert.

austrian police are trying to figure out if the plans in the 19-year-old suspect's home. one suspect pledged allegiance to the islamic state. show organizers announce they are cancelling the three swift see e vienna shows. if you don't have a concert -- if they had not let trump go on stage -- if you don't have the concert, nothing can happen. you get two guys. 19 years old. they don't have -- when you know that it's in the works, you don't know. is it 20 guys? you don't know if it is only these two guys? they're amateurs. you don't know if it is highly coordinated. just cancel it. what is weird is vienna is the nicest place. no crime goes on there. it is odd and scary and concerts

venues. the one in moscow and paris a couple of years ago. frightening. the markets are not showing any real improvements since monday's decline. we will kickoff that discussion next. as we head to break, check out the mega cap tech stocks this morning. track the losses. "squawk box" is coming right back. while i am a paid actor, and this is not a real company, there is no way to fake how upwork can help your business. upwork is half the cost of our old recruiter and they have top-tier talent and everything from pr to project management because this is how we work now. - [narrator] we just signed the lease on our third shop. my assistant went to customink.com from pr to project management to get new uniforms with all the locations. he found great products, uploaded new art,

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take a look at the futures. triple digit losses indicated now for the dow. lost triple digits yesterday. unable to hold on to gains. joins us now is ethan aoifinn devitt from moneta. i see you are steering a middle path. nothing is absolute, is it, aoifinn. it is partly responsible for just accelerating the angst that was brewing in the markets any way, but it came home to roost. >> exactly. we have been playing a big game of whodunit with the negative news flow and was it the japan or the unraveling the carry

trade or the job numbers? was it warren buffett's publicized halving of his share in apple? all of these reasons converged to create the unenthusiastic choppiness in the market we see this week. >> as you point out, buffett, people pay attention this has been happening the last year and a half with the positions. he doesn't have to say right away. you find out about it months later and just for sentiment, it just adds to the, i guess, nervousness. the narrative of a soft landing, that was so engrained in everyone as mission accomplished. now we don't know. you are not convinced that the world is ending any time soon. >> no, the fundmamentals have nt changed the last year and a

half. listen to jamie dimon today, listening to a 35% probability is still less than 50%. it is still pretty cautious in terms of that and they could easily get out of that estimate if things look better. what is looking is how much the rhetoric moved and what the fed needs to do. it moved into almost full-scale panic mode and we have had about the 25-basis point cut and then a 50 and the emergency move. that ramped up quickly. a lot of that was stoked by the sound bites that were coincidental. the warren buffett newswas at the end of the 18 months of the holding. he does hold a lot of cash which signals something amid the noise. we shouldn't jump to conclusions with the sound bites. do i think we are heading into reces recession? no, at this time. i think we are looking less comfortable and we can see that

with the consumer and the warner bros. numbers. consumers are less enthusiastic. we saw it with disney. theme parks are down. the american consumer may have tapped out when it comes to the highly expensive inflation charge spending on the discretionary spend there. overall, still robust. these employment numbers are still very sound. >> so, steer a middle ground at moneta. extreme take on the market. how do you do that? what does that mean investors should be doing because the rotation that we were witnessing has -- technically, that makes the market look a little better because the breadth is better. we just saw the ten-year and that doesn't look nearly as scary as it did at 3.70 or 3.74. do you watch that? do you watch the vix?

do you watch economic numbers coming in? how do we know whether that middle ground, whether you start veering off the road or something? >> well, we don't really watch the vix. the fear indicator is important to hear how important markets are feeling. that is a good barometer for clients when they come in to us. as long-term investors, we need to let that settle which it did readily. we expect it to be in a lower band for volatility going forward. during a middle ground means not trying to be one sided on any issue when it comes to say the inn evide evident or the incomes or the staples because there is clearly rotation back into them. if interest rates start to fall, the dividend paying stocks, the bond will look attractive. we had a core allocation across the growth and value stocks.

it has been painful particularly when momentum was the name of the game. now that script is being rewritten and the rotation is not a new thing. that has been going on for four weeks now. we have seen a trump-induced move, but that is too dramatic. is a trump or democratic administration? we can't really jump to conclusions. >> aoifinn, you speak french? you have a masters in france? you speak french? >> i do. i'm not going to break into it right now. i do. >> you have a masters in applied neurosciences? what is your story? this is interesting. we all come from places we never knew we would end up, don't we? >> that's the psychology.

investor psychology is the most important thing right now. >> all right. thank you. see you next time, aoifinn. coming up, business on the ballot. key senate race in michigan focusing on ev competition with the chinese. we will head to that battleground state nt.ex don't go anywhere. "squawk box" returning after this.

welcome back to "squawk box." our executive edge taking us to michigan where evs taking the battle to china. we have emily wilkins with more.

>> reporter: the future of evs is driving the senate raise and that could break the ev vv tax credits for consumers. mike rogers has been critical of evs targeting emissions from cars that could lead to evs sold. >> what's the better way to get to a better carbon footprint in america? it is not mandating you drive a car that likely will benefit the chinese communist party. >> reporter: the nominee supported the evs coming into the u.s., but the government needs to incentivize or be left in the dust. >> the next generation of vehicles should be made in michigan. i think people miss that on electric vehicles, china is

eating our lunch. >> reporter: currently, polls is showing slotkin in the lead. jd vance has here in the state yesterday and kamala harris flew in last night and held an event and will hold another event in detroit today. guys. >> let's talk unions. i don't know if you were watching the big rally the vice president was having. there was a lot of support for unions in that -- in that room. i just wonder how quickly you think it's union movement is pushing for evs or not. >> reporter: i think there are a couple of questions here in terms of unions and evs. there were strikes and concerns over evs and the labor force.

the manufacturers don't want to be left behind or don't lose jobs, you have to make the transition into evs and hybrids. the interest is not where it expected, brut it is still growing. people in michigan say people want evs, but it may be slower with the charging stations online. it is not right now, but ten years down the line or 20 years down the line and if people want more evs at that point, is michigan make aing the evs or n. >> thank you, emily. and coming up, eli lilly on deck with the earnings. it was interesting with wegovy. you see the stock is down a little bit in anticipation. what a run it's had. as we head to break, here is

yesterday's s&p 500 winners and losers. >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. okay, team! oh, thank you so much i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot - [narrator] we just shipped our millionth monthly coffee subscription box so we're sending custom thank you gifts to our team. our custom ink rep is just as excited as we are and knows what great quality products to get. celebrate your milestones with custom gear. get started today at customink.com.

good morning. sorry. welcome back to "squawk box" live from the nasdaq market site in times square. checking the futures. they have improved. no longer triple digit losses. we had into the close yesterday, we did see a lot of the big gains we had yesterday reversed. what are we right now, sorkin? we don't fknow if we are in a down draft or headed back up. >> the dow will open up 100 points right now. >> back to triple digits? >> it is the nasdaq to watch. look at that. ten points. nine points. recei seven points. i could just sit there and watch that. it's kind of mesmerizing.

>> you're weird. oh, my gosh, you are not allowed to say that anymore. when we come back, a lot more on "squawk box" from rising mid east tensions. we will have more ahead. richard haas will be here on set. "squawk box" will be back in a moment. >> announcer: currency check is sponsored by interactive brokers. the best informed investors choose interactive brokers.

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♪ [lock clicks shut] welcome back to "squawk box." there's a lot going on in the world no matter where you look

with the venezuela elections and the mid east with the tensions and in europe, russia and ukraine war and it is going on at the same time the election year here in america that is the talk of the town. joining us right now to give us the talk of the town, richard haas. good morning to you. >> good morning, andrew. >> which one do you want to take first and relate it back to the election. i'm actually very curious how you think the election may or may not impact all of these things and if it is impacting these things. >> foreign policy will not have an outcome to do with the elections. americans will not vote in the basis of foreign policy views. >> flip it around. do you think any of these things, whether there will be an escalation in the middle east or how you think putin is thinking about ukraine or how you think what's going on -- do you think

any of that is a function of the u.s. is focused over here and we're going to do this over here. >> over the next 90 or so days, i don't think the stories you mention, ukraine will not have an impact. it will look pretty familiar. venezuela will look familiar. the one story that could affect things here is the middle east. i think if bad things were to happen here, it would have a negative impact for kamala harris because sherepresents the administration. >> what is your sense of what's going to happen in the middle east right now? there is this sort of rising sense of escalation. we thought there were reports on sunday or monday there would be an attack on israel or israeli fac facilities. >> i think it will happen. this was an hue mill makes.

they recuruited people in iran. humiliated is the word. they have been getting lots of pushback from the russian and ch chinese who don't want to see a retaliation. how do they avoid the retaliation against the retaliation? i guess the iranians are still guessin gauging what to do. >> if there is an attack, what does the united states do? >> last time, in april, when the iranians sent 300 drones and missiles, they were urged to take the win. i think a lot depends on what the iranians do and the cause tys. the basic u.s. pressure to is

tamp things down. >> it would get complicated. we are hearing arms embargo and people accusing kamala harris -- this would be different than gaza. we would have to put all of our resources to back israel if this was against iran. >> 100%. gaza was increased by the israelis. they were using military force in a way. >> you say everything is tamped down and we're not going to do something. >> israel. if the iranians hit israel, the united states will say we're going to talk to you about what it is you do. is this an opportunity for israel to go after the iranian nuclear or do they escalate? do they react in a modest way which is what they did last time. it depends what the iranians do. >> what do you think of the current state of bebe netanyahu

in israel? do you think he will still be in that role? >> yes. >> two months, six months? >> elections are not scheduled for another couple years. he has a four-seat majority in the knessett parliament. he is strong. he has five fronts. he has the houthis and yemen and iran and hezbollah and the situation in the west bank. things are percolating in five fronts and venues. my hunch is he stays there for a while. if bebe netanyahu would be forced out or have a medical problem, to think israel is going back, that is gone. bebe netanyahu is as much symptom as he is cause of the political evolution. >> will the 2028 election -- there will be discussions about

russia and ukraine? ukraine now attacking an area of russia is of total surprise. now they have to send -- it is going on and on and on. let's say if trump were to win, would there be some we take this and you keep this. some kind of art of the deal to try to end this or is it going on forever? >> i'm hoping if u.s. support for ukraine militarily is strong and the u.s. support not going away and ukraine has the ability and permission from the u.s. to do what they did yesterday, that time is not his friend. then i think the chances of some type of a cease-fire and interim cease-fire in place begins to grow and neither side gives up the long h-term claims and puti can keep the fever claims of ukraine and they can get the land back going to 1991.

could you have a korean-style armistice? the pre-requisite is the u.s. support for ukraine has to happen. >> richard haass, thank you. >> are you available to negotiate? >> i would love to. >> would you work for either separation? >> the negotiation on that is something the united states has to push. i do think -- >> would you work for either administration? >> for something like that? absolutely. it's public service. >> i agree. totally. thank you. coming up, sports tourism is one of the fastest growing sectors in the travel industry. now valued at $500 billion. we will get a live report from carl quintanilla. carl. he's in paris. that's next. "squawk box" is coming right back.

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any worries about novo and how that would impact lilly. >> not a chance. >> no. that is what's happening right now. up almost 7%. the stock had been higher. it had pulled back a little bit after the incredible run. it is up almost 7% today. the adjusted net is $3.29. the street is carrying $2.60. i quickly deduced it is 50% higher. can you check my math?

the company -- fiscal eps now adjusted is 16.10 to 16.60. the company says that is an increase in where they had been. how about revenue in one quarter for mounjaro. $3.19 billion. can you give me a run rate? i came up with that with a calculator. $12 billion for a weight-loss drug? that is unbelievable. they have a bunch of things. jaurdiance. humalog. zepbound is over $1 billion drug. we will talk to david ricks. a programming note. he will join us at 7:10 eastern

time. we will see where the stock is by then. all these numbers. the revenue estimate was 9.9. andrew? >> yeah. >> 11.3. >> i'm looking. >> 11.3. i'm telling you. 11.3 verses versus estimate of 9.9. i want to want food. i don't want to eat it. i want the desire. that's what life is about. >> i love food. >> crepes. >> we will get to carl in a second. >> carl -- >> food. >> carl, let's go to paris and have no appetite. >> that's not true. you have to have an appetite. >> the best creamy sauces and wine and you don't want any of it. you are over there like a -- >> that's not what it is.

people love the food. they don't want to have it in great quantities. >> carl, save me. >> i think i err on joe's side on this one, andrew. i think i understand he wants the desire part. >> i'm lusting for life. i don't want to think i underst the desire part. >> lust for life. >> i'm lusting for life. i just don't want to have too much life. >> you're anxious about having too much life. >> too much food. that's life. i want the life, not the food. >> carl, what happened and what's going to happen? i'm excited about that 200 meter. >> yeah, we're going to get to some of the highlights. it is going to be a very busy day. 27 gold medal events, track and field a big part of it. the viewing experience is maybe the best this year. this is the first time the olympics have one exclusive hospitality provider and they're

changing the viewing experiences in very cool ways, even at some of the city's most famous landmarks. welcome to the eiffel tower, we are perched about 200 feet in the air at a premium lounge, gustav 24, with panoramic views of the city, access to this and other premium experiences are run by a company called on location. the official hospitality provider of these games. >> of course there are tickets. of course there is incredible hospitality. but it is how do you bring the sport to life? here at the olympics, this is a really unique opportunity. >> it is a massive operation, posting tens of house thousands customers every day, recruiting 500 full time employees and offering nearly 4,000 different menu items. inside their 25 venues you'll find 3.5 tons of cheese, 5 tons of fresh fruit, and some 200,000

ma macarons and there is appetite for more. >> something we learned out of covid, we all want to be together, we want to experience things live, we want to be in the moment, so we're seeing growth in that. so sports destination growth is about 17.5% right now. >> what comes next? on location is already working on the lawn, on los angeles 2028, along with partnerships with the nfl, the pga and fifa for the 2026 world cup. that was a fun shoot, guys. they're still seeing growth of 17%, even as we obviously ask a lot of questions about the global consumer and travel this week with the guidance we got from airbnb and booking and marriott and so forth. as for highlights, we mentioned track and field, but how about women's basketball, guys? the u.s. women advance to the semis on friday. they'll face australia. they defeat nigeria 88-74. the u.s. women have now won 59 straight olympic games,

seven-time defending oly champs, looking to become the first team in any sport to win eight straight olympic golds and speaking of women's ports, guys, tomorrow on "squawk," we're going to talk to kathy engle bert, commissioner of the wnba and the commissioner of the national women's soccer league as we take stock of how these revenue flows are beginning to change the face of women's sports, and enhance everyone in media. we look forward to that on the show tomorrow. >> i want to go back to the eiffel tower for a second. those spaces, were they -- those were restaurants prior before on location effectively took them over for the purpose of the olympics? >> no. it is bespoke -- our understanding is that prior it was essentially a corporate meeting space, like a little bit of an auditorium with rowed seating. it was on hospitality that came in and said you should make better use of this space and it does sound like now the

parisians are going to take a lesson from that and continue using it for that reason after the games. it is amazing that it wasn't already the case, but that was something that the americans brought. >> that was -- that's an amazing space and gets to continue to be that way afterwards. that's pretty cool. thank you, carl. >> next time. we'll see you soon. >> next time. next time. coming up on the other side of this, following the megacap tech stocks, we'll take a look. should investors buy -- is this a dip on the dip, are we in a dip. what are we in here? we're going to get some picks in the sector next. and then talk to eli lilly's ceo david rickats 7:10 a.m. eastern time following the pharma giant's latest blockbuster earnings report. nothing seems to stop him at this point. "squawk box" coming right back.

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welcome back to "squawk box." some of the biggest names in tech still trying to recover from monday's sell-off. joining us now with his picks, senior research analyst. we have all been wondering whether this is a dip, whether you buy on the dip, whether it is a falling knife and the knife is going to continue to fall and what is really happening here. so, dan, take it away. first of all, before we talk about what you buy or sell or do, where are we in this knife-falling scenario? >> good morning, andrew. i think we're toward the latter stages of the knife falling scenario. there are cyclical headwinds that all the companies are facing and that's going to continue, i suspect in the months ahead. for these companies and i see select opportunities in a name like apple where they're

executing well on their product cycles, i think apple intelligence will really help to transform the device experience over the next several months, so you should have a strong upgrade cycle for perhaps iphone 16 but maybe more iphone 17. services, of course, remains healthy. if you look at google, and i appreciate the dynamics with the antitrust ruling, but i think what will matter more for the stock over the next year is their performance in search, which remains healthy, and i think search is being transformed with generative a.i., and so i believe that platform is healthy and i think their cloud and youtube businesses also will see strong growth. and i'll round it out with nvidia, where there are delays with the blackwell platform, and they're big customers and their partners know about it. what matters, though, is that demand is healthy. the current platform is seeing very, very healthy demand. their ecosystem remains vibrant and really this buildout of the

digital and the a.i. infrastructure is in the very early innings and nvidia sits at the heart of it. i continue to like that name as well. >> you look at nvidia now, 98-48, 12 months from now, 24 months from now what do you think this company is worth? >> i think the company is worth substantially higher than it is today. and i can't give you a specific price target, but what i would say is that what you're seeing inside their customer's environments, in the cloud environments, the customers are investing in nvidia solutions and they're realizing returns. on the other side, inside enterprises, you have a transformation of those environments. for example, you havedigital twins and manufacturing, drug discovery is being accelerated with nvidia solutions, studies around climate detection, fraud detection and financial services, so there is really a whole host of new use cases that are gaining momentum and i suspect 12 and certainly 24 months from now those will be a lot bigger and nvidia will see

that in their financial statements and that will drive share price performance. >> what do you do with apple? >> apple is sitting at a very interesting juncture because you have the iphone install base that is continuing to grow, the ecosystem, the developers, that all remains healthy. we're in a difficult period in terms of smartphone demand, china, of course, remains challenging as well. but what you're seeing through it is that apple is continuing to redefine the user experience. apple intelligence will do more of that. and they do it in a fun differentiated and secure way and it is incredibly intuitive. that i think will drive better iphone growth over the next several quarters, you take that, you couple it with services, you couple it with the ipad, mac, wearables, which i think remains early, and i think their earnings and the free cash flow generation this company generates over $100 billion annually, i think that will be significant over the next 12 to 24 months which sets the stock

up well in my view at current levels. >> okay. dan, we're going to leave it there, thank you, sir. nice to see you. >> thank you. >> appreciate it. it is just past now 7:00 a.m. on the east coast. you're watching "squawk box" right here on cnbc. i'm andrew ross sorkin with joe concer kernen. becky is off today. a lot of big stories to tell you about. bumble shares plunging after the dating app company slashing its annual revenue outlook between 1% to 2%, down from prior expectations and missing wall street estimates for second quarter revenue facing pressure from rival match group. passengers filing a proposed class action lawsuit against delta airlines. the suit alleging the airline refused to offer full refunds after delaying or canceling flights following the july 19th global i.t. outage. delta blaming that on crowdstrike and microsoft, microsoft and crowdstrike blaming it on delta or at least some of these issues on delta. >> that chart looks like something else, though. >> yes. >> doesn't it? >> it does.

>> that doesn't look like crowdstrike. that looks like -- >> like a mountain. >> people not traveling. >> we'll talk about it. >> and this is related, people aren't traveling and people aren't dating? after the pandemic, i thought bumble was clear sailing at that point. >> i think people are dating. i think match is -- >> better than -- >> it is a better way of doing it? >> i'm not saying it is better. they seem at the moment have figured out -- i'm unaware of how these things work. i've not been on these sites. i have my double ring -- my oura and my wedding ring. >> married to your health and your wife. >> i am. meantime, two men arrested in austria on a suspect ed attack n taylor swift. t one of the suspects pledged allegiance to the islamic state. show organizers for taylor swift

announcing they're canceling her three shows there, expected to draw more than 195,000 people. talk about the taylor swift economy. >> doesn't it bother you that a 19-year-old can be radicalized on the internet to wear something like -- he could actually orchestrate something? it is frightening that someone 19 years old on the internet can be radicalized to the point where he's got bomb-making material. so it could be anybody. it could be anybody anywhere anytime. it is very dangerous. >> it scares me a lot. and i will also say one thing, just as we think about all of these things, all of these people who are doing these things seem to be unfortunately men between call it 17 years old and 24, 25 years old. that is the age range which we have to actually figure out what we're doing here when it comes to, dare i say, gun violence,

when we think about terrorism, that is the cohort that we need to be focused on because that's what seems to be happening over and over and over again. this is rarely happening with, you know, 50-year-old women. just not. >> no. >> and i worry about who's here. i do. checking -- don't you? i do. i don't know who's here. supposedly at least 100 that were on the list that are here. and here we are. nobody will notice us in times square. let's check out the futures this morning. we see the dow is indicated down about 100 points. nasdaq down 25. s&p down 7. to dom chu, he has a look at this morning's premarket movers. hey, dom. >> good morning, joe. good morning, andrew. we'll get things started off on this edition of morning movers with a check on monster beverage. those shares down 8.5% after the energy drinkmaker reported a miss on earnings and revenues for the quarter. the company says demand was down

as cost conscious consumers pulled back on their spending. they also said that foot traffic at convenience stores where their drinks are often sold contributed to some of that sales slump. so monster beverage off 8.5%. now let's check on shares of klaviyo, up 18% now after the marketing automation platform company reported a beat on earnings and revenues. the company grew its revenue by 35% compared to last year. and increased its customer base by 15%. as you can see here, since the ipo, shares are down 9%, but nice 18.5% move higher this morning. disney, shares down fractionally now, they fell 4.5% in yesterday's regular session on the heels of its earnings report. now the theme park giant and dow component is facing head wints this morning, they withdraw the target price of $120. they cited amongst other things

expectations for a slowing growth environment for the parks business and a cut to their estimates for the linear tv network revenue side of things as well. disney shares down .70%. for more on that and other top analyst calls of the day, head to cnbc.com/pro. disney, a big focus, i'll send things back over to you guys. >> 85. and things are going better. still 85. all right. thank you. coming up, pharma giant eli lilly reported results in the last hour and the stock is soaring. we're going to talk to ceo david ricks first on cnbc next. ♪(voya)♪ there are some things that work better together. like your workplace benefits and retirement savings. voya provides tools that help you make the right investment and benefit choices. so you can reach today's financial goals and look forward to a more confident future. voya, well planned, well invested, well protected.

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eli lilly out with earnings this morning. angelica peebles joins us now to break down the numbers. i'm trying to figure out how analysts aren't better at what they do. i guess sometimes they are. but when you've got something growing this rapidly, maybe it can -- can a.i. replace the analysts? they missed the bottom line number by 50%. they missed all the revenue numbers, not on -- just the company itself, but on each drug the weight loss drugs they were way short of where they came in. you don't have to answer that, whether we need a.i., but quite a quarter we're going to talk to david ricks about. >> yeah, i think it speaks to how much demand there is for these drugs. you know, like you said, zepbound and mounjaro coming in way ahead of estimates and the company raising its full year revenue guidance by $3 billion. and they're saying that, you know, the supply is improving.

remember just last week we saw all of the doses coming off the shortage list so now they'll be able to meet demand. we might see more blips there, but it is a different story than what we saw yesterday from novo nordisk with them missing expectations. so it is a really interesting time and i'm excited to hear that dave has to say. >> why, in your view, we'll ask david, but why? why novo? is there competition that -- these are people like these drugs bett erbetter? no shortages? >> there is a question that we definitely want to ask dave about the competitive dynamics and what we're seeing in pricing, but one thing that novo has talked a lot about yesterday is that they are going more into medicaid, and volumes of these drugs go go up, the prices go down. there are 21 states covering wegovy for medicaid plans so they pay a lower price, but a really interesting question. >> all right. stay here. let's bring in eli lilly ceo

david ricks. you probably were listening. is that part of it? you're not avoiding medicare states, are you? >> not at all. great to be with you again, joe. we had a strong quarter. no, we're on formulary in a number of medicaid states, and usually they make the superdecisions later in the launch cycle. we launched zepbound six months ago. we think that will expand. as you expand to new countries and new segments, usually the average price falls because those price points are lower. but, you know, our pricing was pretty stable in the quarter, so that wasn't a factor for us. we just see unbelievable demand and we're not even trying that hard to promote this drug. we're not advertising, we told our sales reps to basically just service customers, don't promote, and what you're seeing is consumer organic demand here as we have shipped more product, as we bring more supply online

in the united states, building six plants, hiring thousands of workers, ramping up production. that's the story of q2 for zepbound and mounjaro. >> and one of the things that, of course, factors into demand is whether people can actually get this drug paid for, so where are you at with insurance coverage for zepbound? >> yeah, so the two brands, mounjaro for type 2 diabetes, zepbound for weight management or obesity, different stories. mounjaro has almost universal insurance coverage already, just two years into its launch cycle. so well north of 90% of insurance plans carry it. both in part d and in commercial. and that's widely available. for zepbound, it is new, six months, takes a little time to get that adoption, plus we have this phenomena in weight loss space called employer opt-in. we have good insurance coverage at this stage, we're above our targets, north of 80% of commercial plans in the u.s. cover it.

medicare, the federal government plan for seniors, does not cover any weight loss drugs per se. and then on the employer side also, sometimes the plans will cover it, but the employer has not opted in to cover weight loss medications. so far, about half or a little more than half of large employers have done that. we encourage the others to consider it because there is emerging data that using these medications can keep workers healthier longer. reduces absenteeism, even there is a study out that showed there was an impact on mental health. so i think that day is coming, where this will be universally covered. we're not there yet. but i think over the coming months and years, you know, the data that is unfolding along with the work of the company will really expand access for these medications. we see people self-paying at a pretty high rate. >> you got other things -- we probably talk about some of your other bright spots in your product. but just one more question on this, the penetration of where

we are right now in this -- the whole big picture of these new drugs that are, you know, like transforming the whole idea of obesity in this country and so many different ailments that come from it, how long does this go? where are we in the penetration? and as we -- as we get further along, you already mentioned there will be margin pressure, probably. there will be pricing pressure as we go along. when does one pass the other? you don't expect it for how long, david? three, four years? >> yeah. i mean, i think we're like in the bottom of the first inning here, joe. it is really early. we are not really promoting, we're not launching in $40 country we have approvals in. and we haven't even gotten to most of the medical benefit proof that is happening. this quarter we're announcing that -- we announced that congestive heart failure study -- reducing the risk of hospitalization and death and other parts of that malady, by

38%. we have dozens of other studies to prove the clinical benefit on outright disease. not just the preventive benefit of obesity, that's coming in the next two, three years. so -- >> you're not really promoting this because you're promoting jardiance, every time i look at the tv, i'm dancing with the jardiance. it worked. you're doing well. so you are promoting jardiance? >> yes, because we're not constrained by supply. >> have you seen it? >> i love those commercials. >> they're different. they star different people. everybody is dancing with each -- have you seen them? >> it is a nice jingle. it is good for nbc, joe. >> you know that's why i brought it up. what a great drug. >> really quick, one more question on weight loss, of course, with people not able to pay for zepbound out of pocket, a lot of people are turning to the compounded versions of these drugs.

and now what legal action can and will you take against these compounders and the companies that are selli ing the compound versions? >> this is concerning. it is concerning for a patient safety perspective. one thing we have been doing is when you're on the shortage list, it is permitted to compound en masse. now that we're off, it is not. so compounding has been around for a long time, a practice regulated by states, not by the fda. and intended to customize medications to individual patient needs. so that can still continue, though i'm not sure what customization for zepbound is required. mass compounding should not be occurring. and a couple facts for viewers. we don't supply any medication to compounding. so, they're sourcing medication primarily from offshore, unapproved api sites, usually in china. we acquired some of it and tested it and i can tell you, often it is not our product or

anything like it. >> do you think -- >> there is a danger here. >> do you think the rules should change about compounding and i mean, obviously hims and hers is one of the biggest public companies now that is doing this sort of compounding en masse. >> i do. i think, first of all, we're in a situation where we cannot supply the market with a drug that is so important and popular because of constraints in manufacturing. that interestingly, it is not really our ability to put up buildings and hire workers, it is validating our process es under the very meticulous standards. it is a crazy world if the compliance of the fda is a whole industry is created that doesn't comply with the fda. that seems like not the right outcome here. we would like to work with the fda to speed up the bringing online and more capacity so we don't need to use mass compounding which is unsupervised by the food and drug administration. >> do you think there is any move afoot to really change the

dynamic here? >> well, we're making moves. more to come on that. but i think the best way for us to do that to begin with is have private conversations with the agency and the federal government and we do receive daily reports of patients who are going to emergency rooms, having untoward effects from compounded material. that's what i'm worried about primarily. so, we'll solve the supply problem in the end. in the meantime, i think there is a path where industry could work with the agency to speed up approvals and bring on legitimate supply in a better way. and then we don't have to have, you know, on the shadows organizations that -- >> on legitimate supply, what does that timeline really look like for you? >> we say in the second half of this year, it will be producing for the u.s. market, globally 50% more than the same period last year, we're on that kind of ramp into -- >> is that still going to fulfill the demand? i think hims and hers and other folks think they have a not just a business that is going to last

six months, i think they have a business that is going to last a decade or forever. >> yeah, in the u.s., i think we're going to get there much sooner than later in terms of satisfying demand. and the key -- we have a key project in our pipeline which is the oral pill glp-1, which gives you weight loss, controls diabetes well and uses a totally different production system. importantly, these drugs are injectable. they have to be made in a sterile setting, and that is technically demanding and capital intensive. these other outfits are not meeting those requirements. there is no guarantee they're sterile. >> can you speak to this in terms of the investment in the injectable business, knowing that you might have a pill ready, you know, 12 months, 24 months, 36 months from now, and knowing that more people are going to want the pill than the injectable and might actually -- it might cannibalize the injectable, how much do you invest in the injectable side if you know that business may not be there if the pill is ef

effectively going to take it over. >> we're doing maximum on both fronts. if the end we need to shut down our injectable sites because the pill is so successful, so be it. our job is to cannibalize ourselves, that's what innovators do. the pill is still in testing. we don't have the final clinical profile. but assuming it hits its marks, i actually think there will be a place for both. we'll need the injectables. it will be more effective than the chemical name of the pill because it is a dual act ing. and we have a triple acting in the pipeline as well which could have weight loss over 30%. i think the market will segment and certain patients who need more weight loss have more acute disease will use more powerful medications, usually injectable. and the pill could be for the masses, and then remember we haven't launched in most of the world. so, we can work to satisfy the u.s. market first with the injectables, hopefully that allows consumers not to have to

go to compounding. and then expand capacity primarily with oral pill globally and follow that with more capacity coming on line for injectables. we'll get there. we have a competitor determined to get there as well. it is a transient effect. in the meantime, we really shouldn't have this happening and, you know, that's our position as a company. >> and not all created equal. some drugs, some people think are better than others. that will work out as well. didn't you buy -- i remember lilly getting into neuro and cancer. we don't talk about that anymore. >> that part of our portfolio grew 17% last quarter, by itself, one of the fastest growing drug companies. and we just had approval for alzheimer's drug which is launching right now. >> that's the neuro part. good. let's talk next time, david. i guess there is a lot of other companies we need to give time to. we could talk about this all

day. we appreciate it. thank you. >> okay. thanks a lot. >> thank you for having me. when we come back, the latest all america survey. "squawk box" returns after this. >> announcer: today's aflac trivia question. who holds the record for the youngest gold medalist in olympic history? the answer when "squawk box" returns. good thing i had aflac. (aflac duck) hmmm the cash i got from aflac helped pay for medical expenses, groceries, rent. it really helped close that gap. (whisper) go, go, go! (group) yay! go aflac! go duck! get help with expenses health insurance doesn't cover. find an agent. get a quote at aflac.com. wish we had aflac on our team. you can! (♪♪)

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>> announcer: and now the answer to today's aflac trivia question. who holds the record for the youngest gold medalist in olympic history? the answer, usa's marjorie gestring. she won the 3 meter springboard in the 1936 berlin olympic games at the age of 13 years and 268 days. welcome back to "squawk box." the latest cnbc all america survey, economic survey, offering data on which presidential candidate voters think will be economically better for the country. steve liesman at the table this morning, joining us with some very -- >> here we go. here we go. the cnbc all america economic survey finds former president donald trump holding a commanding lead among voters on key economic issues. but he's ahead of vice president kamala harris by just two points in the head to head race for the white house.

trump led biden by 45 to 43 in the july nbc news survey. the cnbc august poll finds trump leading harris by 48, 46, or the same two points and within the poll's 3.1% margin of error. yet, by a 2 to 1 margin, 40 to 21, voters believe we're better off financially if trump wins. 35% say it will make no difference to their pocketbooks. so how do we get there? the numbers are driven by republicans would strongly think it matters for their finances if trump wins. 42% of democrats say it doesn't matter. 54% of independents, you see just 17% of republicans think it doesn't matter if trump wins. or whoever wins. trump also has doubled digit advantage on several key economic issues. voters say inflation and the cost of living are a top concern. they break for trump by 12 points. 53-41. voters who say the overall economy is the top issue, the two are tied 47/47 on addressing

the needs of the middle class. harris has an advantage among voters on healthcare and protecting democracy. she also leads big time by 23 points on the abortion issue. trump gets support on a lot of it on crime and safety, immigration and border security and taxes. the two are tied just about on social security. so, if the economy is so important, which we believe it is here, how is the ballot so close? it may not all come down to the economy, of course. harris has a one-point lead on who will deliver, quote, positive change to the country overall. that's an important indicator on a change election. 16% are unsure. there is still ground to be gained by either side there. the survey shows both sides have consolidated their bases, but neither made particularly strong inroads among the swing voters that are going to get them into the white house. andrew? >> what is the plus or minus accuracy of this whole -- >> 3.1%.

>> 1,001 individuals, we get them on their cell phones and -- >> 1,0001. i think they can't stop, they don't know -- >> i just think that's cute. not a thousand. and you didn't stay under a thousand. 999, you went one over. >> we did. >> can you explain -- the issue you describe -- >> you didn't run out of athletes? >> no. the issue you described about the economic issues versus this positive change idea, the distinction between those questions, because you sort of can add up a lot of other issues and then the positive change one, what is the positive change one supposed to be? >> it is one that sort of acts overall about the direction of things and how you think the candidate will do for the future. let me just say a couple of things -- >> that's why i'm asking. >> these are early days. i think the contest here is about one, defining harris, is

she going to define herself or will the republicans succeed in defining her before she does? and it is also about trump. there is still a high negative there, people supporting trump. and there is an interesting editorial in the journal today basically saying can trump get out of his own way? >> it is his to lose which he's done before. >> which he's done before. >> it is about defining harris, but with no definition whatsoever she's up in a lot of polls. it is all about trump who is already defined. >> we have one thing -- go online, cnbc.com, you can read all about the survey there. more people know about trump's economic policies, and fewer know about hers. >> nobody knows about hers. >> right. >> very little. >> unless you -- unless it is the administration. >> madam vice president, time for you to call into "squawk box" and let us know about your economic policies. >> or answer any question anywhere. >> we're waiting for your call. coming up, looking for andrew's phone -- >> mine's not ringing.

maybe yours. >> no. got a direct line. it has happened. coming up this morning, top headlines, plus palantir founder joe lonsdale joins us to talk tech and the november election and a lot more. the athletes, they're clued in. >> they really know.

under armour reporting this morning. the company posted a penny a share. analysts had expected a loss of 8 cents a share. that is on revenue of 1.8 billion, gross margin increased to 47.5%, mostly driven by lower levels of discounting in the direct to consumer business. also lower product costs. under armour raising its guide ans ans for earnings for a year. it is good for 8%. >> coming up, universities on alert as trump's running mate jd vance turning up the heat on some of the nation's wealthiest endo endowments. we'll bring you the news on that fascinating story ahead. "squawk box" returning after this.

welcome back. i'm frank holland with your cnbc olympic brief. a thriller in track and field last night as quincy hall ran down his competition to take the gold in the men's 400. in the men's steeplechase, american kenneth rooks came out of nowhere to shock the field, bolting to the lead in the final lap. and hanging on to win the silver. it was ahearbrket ear for the american men's team as they lost a five-set thriller to poland in the semifinals of indoor volleyball.

that's your latest on the olympics. "squawk box" will be back right after this break. high five! high five! -i'm in a call... >> announcer: this cnbc olympic brief is sponsored by comcast business, powering possibilities. five years of a great rate that won't change. yep, dave's feeling it. but it's only for a limited time. five years? -five years? introducing the comcast business 5-year price lock guarantee. powering 5 years of savings. powering possibilities. are you keeping as much of your investment gains as possible? high taxes can erode returns quickly. at creative planning, your portfolio is managed in a tax-efficient manner. it's what you keep that really matters. book your free meeting today at creativeplanning.com.

harvard, princeton, some of the other ivy league schools routinely top the list of the wealthiest endowment funds but that could change if former president trump and his running mate jd vance win the election in november. robert frank joins us now with more. >> good morning, joe. good to see you. one of jd vance's signature bills in the senate was a plan to tax university endowments. he called for raising the investment tax from endowments over $10 billion from 1.4% to 35%. democrats knocked it down in the end, but he and other

republicans in the house and the senate continue to support the plan. vance says that universities like harvard, princeton, emory, duke, even vanderbilt and others need to be more accountable. he said their endowments have grown on the backs of taxpayers and are hedge funds with universities attached. this tax would apply right now to about a dozen or more universities. harvard's endowmentment is around $50 billion right now. yale at 41. stanford, princeton, around $35 billion. the universities say their endowments help low income students like vance who received a full ride from yale tduring hs first year. they say it would hurt philanthropy since donors would be less inclined to give. it is unclear how much revenue this tax would raise. the 2017 tax changes included a new tax on endowments of over $500,000 per student. so that's about 50 schools right now. that tax has raised less than a third of its expected revenue. so, there is not a big revenue

component here. i think it is perhaps more symbolic and a gesture toward the increasing anxiety around the size of these endowments and just how much is going toward low income students. >> yeah. >> what do you think? >> i don't like taxes. i don't like -- this is just -- it is de minimis, the amount of money. it is like a -- it is as bad as when democrats talk about fairness. this is a fairness -- i'm angry at a lot of the universities for what we saw over the past year. i'm angry. i would like to tax them into oblivion, but i don't think it is the right thing to do. >> that's the impulse from which this came. >> and what are they doing? low income? how you got $50 billion left

then? let's really do a job in getting people in. why are you laughing? >> well, no, you want to put pressure on universities, is this the path? >> maybe. it is some way -- >> it is economic. >> it is some way. >> it is economic, but maybe the -- >> what do you think? >> i would love to figure out a way to force universities to have cost controls. this could be a way to do that in some ways, but i think the real way is going to be on, you know, all sorts of -- unfortunately on tuition because of scholarships and other things that if you could actually put a sort of ceiling on these things, it would force the universities to have some budget. >> cost controls or to joe's point make them say, look, at least half of your endowment spending of the year has to go to low income financial aid. if you look at the big schools, less than a third of the spending from the endowment goes to low income students. the rest goes to research, buildings, to staff, et cetera. so, if that's the reason you want to preserve it and keep it

from being taxed, then there should be a test. you got to spend x. >> need a panel on this. >> and we are going to go do that and robert is sticking around. don't go anywhere, sir. natasha sarin with yale law school and yale law school is a school of management, and william trackman, former trump education department appointee and a general counsel for the mountain foundation. you heard robert. natasha, what do you think? unfair to do it this way? i'm thinking that's what you're going to say. >> well, andrew, robert made a lot of incredibly good points so i'll kind of reiterate them. this tax proposal isn't about raising revenue. it is not going to raise much of anything at all. it is not about addressing very significant problems we have with respect to a debt to gdp ratio, it is going to rise to above 130 over the decade. this tax proposal is not about making college more accessible and affordable, which are worthy aims, this would do the exact opposite of that by making

universities less inclined and have less resources to be able to invest in educating future generations. what this tax proposal is about, and jd vance has been super explicit is it is about the fact that he views universities as the enemy and thinks that they're hostile to his vision of the world and wants to find a tool to exert political pressure on them and thinks this is a good one. i'm biased. i sit in one of these universities. i -- but i'm very firmly of the view that american universities are kind of the envy of the world because of the training that they're able to provide many of the workers that work for people who are watching this show. and that's something that we should seek to preserve, not something we should seek to attack. >> william, this is an attack, that's what it is, right? >> this goes back to 1983 supreme court case about bob jones university. where in an 8-1 decision the court said it is okay for the federal government to strip that

school of its tax exempt status because the school didn't allow interracial dating or interracial marriage and so this is just another example of how the federal government can prioritize how it doles out tax benefits. the universities have extraordinarily favorable tax treatment. much lower than you or me or your average hedge fund. and that's generally because we think of them as places where learning occurs, where we want to encourage resources and our tax dollars to go, but that's no longer the case as we saw with this sleepover controversies that have been happening in the last few months, the rampant antisemitism, the other civil rights violations that the supreme court has found, affirmative action, these are to longer places where we ought to give favorable tax treatment. i'm here, i'm a berkeley grad, i think this is a proposal that is responsive to some of the most recent things we have seen with universities in america. >> william, another tax benefit that university have come under fire for is their property tax. if you look at here in new york,

nyu received the equivalent of $180 million in tax benefits because they have all these buildings that they can build and they don't pay taxes. that's columbia, nyu has 140, harvard is $170 million. do you think that there should -- when looking at the tax benefits that these very wealthy universities have, do you think they should also be taxed on property? >> the question is why give them favorable treatment? what is it about them as an institution that would garner them differential treatment in a positive way as opposed to you or me or the average business down the street? the question is the university providing a service or some other benefit to the community that those other institutions aren't doing? and i think the proof in the last few months is they aren't. >> what would you say about hospitals? or religious entity? or some place else that has a huge endowment where they're also private institutions that compete with them? >> many of these places do

provide a service and do deserve favorable tax treatment. so we do that for religious institutions. we have a 5013c status. so there is nothing wrong with 5013cs. the question is why. the argument is quickly going away. >> we got to leave it there. it is a longer debate, though, a good one. natasha and william, thank you. appreciate it. >> thank you. spend some money on protecting students so they can go to class without worrying, you know, about losing their lives or physical harm. maybe start with that. coming up, in this week's rep in the stocks, a sign of mo trouble ahead for the summer? jon fortt is going to weigh in. probably have both sides of the issue covered. stay tuned. "squawk box" will be right back. p sharpen your skills, you can stay on top of the market from wherever you are.

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welcome back to "squawk box." a rough august for stocks already with the s&p 500 yesterday closing down 6% from where it opened a week ago.

is the worst behind us? the big question everyone's asking and we may have an answer here. jon fortt here to weigh in. >> and answer or two. andrew, the market saw from friday and monday largely, remember how it started. july 31st fed didn't cut rates. when the weak jobs report arrived friday morning showing unemployment shot up by 0.2 the market freaked out. going to have recession. fed should cut. now have to do a half point in september, all of it. monday brought an even steeper sell-off tripping over the japanese market partly tripping over our market. market steadied. balanced out as they often do. encouraging sector numbers, positive earnings and hopefully got perspective. look, it's august. a year ago first week in august i was here asking, does the fed's rating cut signal a top for stocks? you know where the s&p was that week? around 45.75 and for a while looked like top. stocks fell. end of 2023, higher.

similarly, here the economy looks solid. yes. consumer slowing, by design. labor market is cooling, as it should. the 100 days before a big election are usually bumpy in the market. that makes the s&p's 8% drop from the high both healthy and just about over, andrew. >> okay. stocks still, though, we can admit, are not cheap by historical standards. couldn't they head lower from here? >> well, andrew, "on the other hand," the worst for the market still ahead. i mean, remember how we got here. stocks on a gravity defying run powered by, one, artificial intelligence hype and two, soft landings from rate cuts. odds of both panning out suddenly don't look so hot. first the a.i. narrative looks as wobbly as that gemini control. and results revealing strong demand the company's operations are straining to meet and now have to wait three weeks for nvidia earnings rumors of a

slowdown. and changing the conversation about rate cuts from a stock booster to a response to a fragile economy. we're not talking about rate cuts lifting small caps. wondering if the fed will have to cut a half a point in september and seeing russell drop almost 10% in a week. why we're on pins and needles for the jobless claims data in less than an hour. if the labor market is cooling more than it should, downward pressure, stocks under most of the week, might get stronger. when that's hases don't count on the mega cap tech stocks saving the day again, guys. >> what do you really believe? >> it's the market. who knows. >> go lower. wait. that's what i think. >> what you think? >> or maybe it's what you think. maybe it's what i think you think. >> always think the second one. was that the second one this time? >> yes, it was. yes, it was. >> it is easier to structure if i think the second one but i

intentionally switch it up so it's not too -- >> we'll never know. one thing we know. jobless claims number. if that was really high. >> what we also no. >> off to the races again. >> the "on the other hand" newsletter scanning this qr code right here. right there on the screen. or if you like to type, cnbc.com/otoh. the full text of both arguments and you can share and decide whether joe's right. >> qr code. >> yeah, yeah. still -- >> trying to figure out. tyson might get one tattooed on this face. >> that's the thing with me, worried that -- >> coming up, what does the future hold? for warner brothers discovery. after its latest results, get into that. "squawk box," joining you in just a minute. d all. whatever the stage,

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the 5.3 billion dollars. joining us, tom rogers, oorbit gaming executive chairman and former abc cable president and msnbc contributor. tom, maybe your ears burning, itch, whatever they do when someone's talking about you. talking about you earlier in reference to disney and netflix. just talking about discovery and andrew earlier said something i thought was pretty profound. that is, is there any media company that shouldn't have sold to someone three, four years ago, and let that someone ride the industry malaise down? i mean, everybody should have probably sold. then whoever ended up with everything would be eating these, these difficult conditions? >> well, good morning, joe. well, that's what at&t did to discovery, as you know.

i think we could really do an "on the other hand" with disney and warner both reporting yesterday. obviously, two companies that are collaborating on the venue, sports venture that they have together, along with disney+, hulu, max bundle. but two very different outcomes base and their earnings. disney announced that their streaming business swung to profitability. warner had previously announced that it had a profitable streaming business, and it swung to a loss. although there's an asterisk there, because their streaming numbers include hbo cable. so it's not really an apples to apples. disney was talking about a strong ad market, and talking about overall ad revenues up 8%. espn ad revenue up 18% and

warner brothers talking about a soft band market and revenue down, ads, 9%. when it came to overall revenues disney hit a milestone analysts haven't focused on. the milestone being that this quarter, their streaming revenues actually began to exceed their legacy, media revenues, in terms of their network traditional television revenue, and warner is still about 80% of its revenues, come from its cable networks. one bright side. warner actually grew subs, international subs, quite healthfully. disney actually lost a little bit of subs on the international front, and warner's number, again, obscured by the hbo cable thing. my guess is they lost hbo cable sub, so their actual gain of streaming subs may have been

greater than they reported. i don't know why they would mix those two together. it really doesn't give a clear view. of course, disney won the nba, warner lost the nba. disney paying to get out of a partnership with your parent company, and warner, i think, needs a partnership very badly. >> and stock, owned it the past three years, you're not doing well. i mean, disney's not doing much better, obviously. even though what you just described are much better operating results. let me ask you a question. so if you were dana jazzlough and owned discovery and that deal came along, the assets you were able to buy. it was going to be hard because of the debt you had to take on. would you have done it? you would have done it. wouldn't you? do you think in the end he's still able to right the ship, if you get debt paid down or has the whole industry changed where it makes that difficult?

>> certainly more difficult than the last two years, and certainly having the opportunity to create a media group like that, i would, i think anybody would find hard to resist, and got to at least point out that their debt is locked up at about 4% for the next 13, 14 years. so a lot of debt, but nothing by way of terms that are going to kill them. i think if i were david now i would be actively looking to join forces with somebody, max and paramount+ are the obvious combination. hbo was really the crown jewel that the whole future of warner was going to be built around, and it's subgrowth is obviously, it needs to pick up substantially. they are in as many countries as

any media company is. discovery international having been a real success, but their engagement is weak in terms of viewing. both tubi and roku, two free streaming services, actually seized max's viewing now. >> you said you thought paramount was the natural partner. it for a very long time talked about comcast and nbc universal being a natural partner for warner brothers. why paramount? >> well, i think the new owners of paramount have to also think about what they're going to do with paramount+. i think that those are probably the two weak players backed by strong studios that have the ability, i think if they combine, to create something of much greater strength than streaming. peacock has invested heavily in

sports with nbc getting the nba. having the nfl. obviously what they're doing with the olympics on peacock is really extraordinary. i think they'll probably come out of the olympics especially with the -- the very low-priced deal that peacock is offering subscribers with a real subscriber boost and coming up with a stronger balance sheet. >> like that nfl game on steroids that could have -- you're right. maybe the other two need them, each other. you always think that, you know, two people drowning holding on to each other doesn't usually work out very well either. tom, thank you. >> thank you. >> we'll have longer next time. it's past 8:00 a.m. why i'm getting out. on the east coast watching "squawk box" on cnbc. i'm joe kernen. you know that's andrew ross sorkin and you know becky's not here. so spent all of that time talking to tom rogers.

today's top stories eli lilly shares soaring at the company blew past second quarter earningsed and estimates. sales of mounjaro and weight-loss injection drug zep zepbound, both better than analysts expected. much better. lily hype full year revenue outlook by $3 million. nothing to sneeze at there. we spoke with the ceo, david ricks earlier in the show, this is what he said about zepbound. >> we just see unbelievable demand and we're not even trying that hard to promote this drug. we're not advertising. told our sales reps to basically just service customers. don't promote. and what we're seeing is just consumer organic demand here. as we've shipped more product as we bring more supply online in the united states. >> in other news, google and meta secretly agreed to target ads for instagram to teens on youtube. that's according to the financial times, which says the

instagram campaign disregarded google's rules against targeting ads to people under 18. and robinhood shares are higher. stock trading platform beating second quarter earnings and revenue. expectations with the help of renewed interest in meme stock trading in the last quarter helped by return to prominence of the influencer in gamestop. keith gill, all he's got to do, a meme, sitting up in his chair, and that might be enough to get things started. meantime look at futures. dow off about 54 points. things reversed when it comes to the nasdaq and s&p 500. nasdaq higher by nine points after down most of the early morning session before things open up. s&p 500 looking to open up marginally higher. 4.25 on the s&p 500. take a look at what dom chu's got going on on some of the

pre-market movers, which have been impacting all the numbers on the screen. >> right. what's driving action sentimentwise and even numerically for the indices. start with intel. a dow component up two-thirds of 1% this morning despite news yesterday that shareholders are suing the chipmaker for concealing problems that led to the stock's plummet last week after posting its quarterly results. that proposed alleged class action said the company made false and misleading statements about hts foundry business for making chip that they say inflated the stock price. amazon saying technology gap competitors widened. so that lawsuit, allegations and everything else contributing. still shares up about one half of 1% still down 34% over the last week. move on to shares of under armour up roughly 9.5 to 10% at this point. athletic apparel and footwearmaker posts surprise profits and beat revenue expectations for the quarter. comes as the company announced

overall of operating model and supply chain process as it tries to cut costs. shires, you see, down roughly 19% so far this year. then we're going to end with another kind of athletic one. this is topgolf callaway brands, hit hard in yesterday's regular trading session after what appeared to be an early release of its earnings report before the closing bell actually had rang. those shares fell by about 13%. in just yesterday's session. off another, well, up about 1% this morning. the maker of its namesake golf equipment. operator golf equipment and entertainment venues topped estimates for prompts but revenues fell shy. market and cut its full year revenue and profit guidance and said it is now conducting a full strategic review of that topgolf venue business with help of outside advisers. so topgolf cal laway getting a bounce today but yesterday down. back to you. >> thanks. more on broader markets

joined on the set by peter courthouse, chairman and ceo, good morning to you. >> there you go. >> you're looking marvelous in purple this morning. >> told you. >> help us -- purple is a, in between -- color. won't talk po markets. what do you think be the sell-off and everything that's happening all week? >> i think you have to look at the facts we actually have, which is, one, for the last, oh, three, four weeks before the sell-off, the mag seven stocks were reasonably unstable. they became much more volatile. they showed significant moves, daily moves, and then we had this economic number. unemployment went from 4.1 positive 4.2 posto 4.3 and everybody thought the world was coming to an end. >> right. >> of course, three days later,

ism numbers, and ism numbers supposed to be retractions actually shows expansion. all of a sudden the world just decided we're in recession. it's a hard landing. you have to sell everything. really whoosat i think is going is that the market is na non-directional. not a lot of natural buying or selling and investors are waiting to see what is actually happening with the economy. look at earnings. some are strong, some are weaken it's not a consistent story. some industries are weaker. but some industry, actually doing pretty well. i think what's happening is that momentum is taking over, and people are selling as they have. they feel mispositioned in a market that's obviously volatile. and so you're getting these big daily moves. i think we're likely to see that probably continue until september. >> and what happens in september? >> well, the fed's going to say

something or do something. >> okay. assume they cut by 25 basis points. >> uh-huh. >> how does the market react sew that, and assume they cut by 50 basis points. how does the market react to that? >> add a few more assumptions. let's assume first of all take 50 basis points. assume they cut by 50 basis points, and you continue to see weaker economic data. >> okay. >> i think the market will conclude actually this is not a soft landing. it's a hard landing. >> and a bigger problem at hand? >> a bigger underlying issue people haven't recognized and i think the market will sell off. by the way, that will krcreate buying opportunity. then you're sort are at the end. cut by 25 basis points and see good data/bad data but in a modest direction, then either going to continue with this volatility or the market will conclude they're going to make it as a soft landing. you know, in, somebody said this. i think it was -- yardeni said this looks like 1987.

i lived through 1987. i would say, hmm, not '87. dropped -- >> 28% a day. >> enormous percentage. what i do think is true about '87 and sort of true about '18 the market thought a certain thing and it didn't turn out to be true and then the market recovers. >> right. >> i think that's where we are today. >> let's say you're watching this broadcast right now. you're sitting on some kind of cash. waiting for some moment to catch the falling niknight at the botm or on the way. do you do that now or based on your proposition you wait until september. >> no, no. long-term investing is wiv crit. if you get a 10%, take it. >> you got it now. >> is that a dip, the question, or 20% discount? >> 20%, yes, smart buying down

20 but bought it down 10. that's still a good deal. it. >> can't time it perfectly i guess. >> can't time it perfectly. >> and could buy more. >> and you should buy more. shouldn't spend all your money. >> what did you do? >> bought equities. >> bought that new tie. it's a beauty. >> i did not sell anything. >> you sold knonothing. >> sold nothing. >> what about warren buffett. >> portfolios took risk down because of volatility. so we, like any reasonable portfolio manager, you would adjust your risk positions to a much more volatile market and i think that volatility's going to stay until we see some clarity. >> peter, nice see you. >> good to see you. >> thank you. the most important part is does the watchband -- always -- match -- >> always. >> your shirt and the tie?

>> still matching. >> he's got it. he's got it. he's got t. and also have to have the socks. >> got purple socks on, too, folks. >> purple socks. >> we don't know about -- briefs -- >> that's a little bit more. >> is it purple? >> it's not purple. >> coming up, no. nothing. >> not even close. >> all right. speak with former fda commissioner dr. scott gottlieb in for tighter controls over chemicals that can be used to make fentanyl. don't go anywhere. "squawk box" is coming right back. our next guest is urg

calling for authorities to get control of the federal problem in the united states that would include fentanyl problem, targeting and better tracking chemicals that can go into the drug. joining us former fda commissioner dr. scott gottlieb, a cnbc contributor, and would we be trying to control the domestic manufacturing of fentanyl? i didn't think that was the problem. or can we exert control globally over where it's made, scott?

>> yeah. this is about getting better control of what's going on in mexico. so back in about 2019 we started to crack down on fentanyl manufactures inside china. china took aggressive steps to shut down their local manufacturing fentanyl sending pills into the united states. they scheduled the products, started to raid some of their facilities. what happened was a lot of the production then shifted into precursor chemicals produced in china and shipped into mexico. so the mexican cartel has taken the chemicals, manufactured them into fentanyl, pressed into pills and those pills get shipped into the united states. our land border. still from china. still illegal medication coming in through international mail facilities and consigned express carriers but a lot of it now is shifting into this trade across the border from cartels buying precursors in china and mixing

fentanyl inside labs inside mexico. we could be doing much more to crack down on the transit of these precursor chemicals. china, first, could be doing more to do that. haven't done it so far. but i believe there's unilateral issues to make it much harder to ship the precursor chemicals into mexico and tighter controls on equipment used to manufactures pill the made by an identifiable set of factories in china. impoese on them. they would have to agree to impose much greater auditing of all sales and put in place pedigrees to make it easier to track and trace those shipments s. mexico one of our partners? >> well, look. mexico has taken steps to impose greater inspections and restrictions on chemicals and

pill presses coming into that country, but it hasn't worked. i don't think they're doing everything they can to put more pressure on the mexican government and chinese government to take actions on their own. my point was in the piece that we don't have to rely on these countries to be cooperative. i don't think they'll ever be fully cooperative and put in place the stringent requirements we require. >> how do we do it? >> we need to take unilateral action here. >> how do we do it? >> excuse me? >> how do we do it? can't put pressure on -- how can we do it? make sure precursor chemicals don't dotget to mexico. >> many of them are chemical suppliers that provide chemicals into legitimate commerce. the people who make the rotary pill presses also sell those to legitimate drug manufacturing operations. we could just say, work with our partner nations saying, look, if you're going to sell into the

u.s. or any partner nation you have to imp pla mant track and trace pedigrees, agree to audits of all sales. otherwise you just can't do business with the u.s. or partnered nations. so if we wanted to we could impose one-way restrictions on these manufacturers that basically closes them off from doing commercial activity with any western nation, unless they submit to a much more stringent set of requirements on all of their sales. i think that would make it easier for us to separate the illegitimate from the legitimate transactions, because the legitimate transactions would now arrive into any country with a much more thorough pedigree on where they were made and where they were going. >> well, doctor, you got -- >> i just want to go back to the hims and hers, these compounds. >> yeah, yeah. >> how much of a problem that's going to be. talking about it with ceo of eli lilly and i feel like, scott,

this is something the fda hasn't moved on, and what your view is. >> yes. i think it's a big problem. fda should be taking a more aggressive action in this case. they're basically ignoring some of their own regulations. i think it's going to be very hard to impose those regulations going forward if they don't take aggressive steps here. especially lilly's drug is off the short list aren't operating in a gray area and may be over the line. can engage in compounding now that's not on the short list. fda has to act if they want to preserve authority going forward. >> scott, thanks. see you later. >> thanks a lot. "squawk box" will be right back. coming up, joe lonsdale, right after this. >> all right. 't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that

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while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there. welcome back to "squawk box." time for another big interview. for that over to phil lebeau in

mobile, alabama this morning. phil? >> andrew here with the new ceo of airbus north america. first chance for us to talk to you since you took this position. >> yeah. >> several weeks ago. and it comes at a time when you guy, about to produce your 500th 5i6 c aircraft here in alabama and expanding production. how much higher it production go here? >> good morning, phil. thanks for coming and seeing us here today. we're really excited to celebrate our 500th delivery from mobile, alabama for delta air lines. the facility opened in 2016. it's been an incredible growth story. we are next year going to open our third line here. so we would have two lines for the 320 airplanes. a third line for the 220 family. >> you were in the position prior to this of jetblue saying i need my planes faster. what do you say when ceos come

to you saying i got to have my a-220 or a-223 faster? >> every industry knows we've had tremendous supply chain challenges. end of the day it's important to deliver airplanes safely and, you know, focusing on quality. and that's what we're doing right here at airbus. you know, i think communication is important, but the supply chain issues have persisted and will continue to persist, sadly, for a short while yet. >> a short while. two years? >> we're now saying we won't get to our ramp-up on the 320 family of 75 airplanes a month until 2027. so, yes. another couple of years, at least. >> in january you left jetblue at the time saying you wanted to take time to focus on your health. short time later year here running airbus north america. why back in the arena so quickly? why here, why now? >> it's a great opportunity. just buildings like this with

airplanes behind us, standing here, and you know, working for a company like airbus, a true global company and also telling the story, phil, of how significant airbus is here in the u.s. and we're standing here in alabama but we built over 1 stock ehelicopters. airbus is in nearly 40 locations across the u.s. and, you know, i truly believe the commitment airbus has to the u.s. has been growing here in the u.s., was a real motivator for me joining. >> you were an airline ceo now running this company. do you see anything on the horizon that gives you a little pause where the economy is right now, whether it's travel, whether it's airline demand? do you see anything that makes you say, i'm a little bit nervous? >> no. look, there's always going to be blips, phil, but if you look at

your industry, we are expecting the number of aircraft in the world to double over the next 20 years. in the u.s. alone, we're going to need over a third of a million people in the next 20 years in our industry, whether on the manufacturing side, the airline side, to make sure that we can grow to the level that we see in growth. so there's always going to be short-term blips but fundamental in this industry, they're really strong. >> finding the manpower you need? >> that's another great point, and airbus and other companies like airlines are all doing a lot to really excite people. i mean, i remember when i got into this industry, it was really exciting to go and work here. >> sure. it's not easy to find that talent talent. >> it's not easy. getting into elementary school and middle schools and high schools. building apprenticeship programs and doing on-the-job training, putting internal programs in place to develop people's careers, because this is such an incredible industry.

>> ceo of airbus north america. good to be down here in mobil. g back to you. >> seconds away from the new initial jobless claims. number in futures. ahead of that all over the map and improved quite a bit during the pre-market session, after the big sell-off yesterday. rick santelli is standing by with the numbers, tlplease. >> jobless claims, initial claims, 233,000. less than expected. definitely less than 249 in the rearview mirror, and 233,000, well that would be the lightest going all the way back to the last week in may. the last week in may. now, revisions may -- excuse me. the first week in july. 223,000. i missed one. continuing claims. pretty much spot-on. not only with the rearview

mirror but the windshield. 1 million 875,000 is exactly what economists and analysts expected, and 1 million 877,000 is in the rearview mirror. just now revisions coming in. so last week's initial move up by 1,000 to 250 meaning we're down 17, and 1 million 869 from the revision. sequentially higher on continuing claims. this now becomes the ninth, the ni ninth, joe, ninth consecutive month over 1.9 million. what many are looking at because interest rates, of course, very volatile during this 8:30 people every thursday and they are moving up. most likely moving up is the 233,000. initial claims being well behaved. potentially that makes the labor market healthy, and that has a whole raft of issues that go in the opposite direction of what we saw last week on the jobs

report. interest rates? well, interest rates today are definitely a bit higher than we expected them to be when we came in earlier. and, really, i guess the situation is, 4% against the high 3.60s in the two year intraday lows earlier in the week. we were also in the 3.60s and 10s now at 3.97. so we may be well below that kind of 5% nervous area in a ten year, but the notion of how much time we're going to spend under 4% at a time where the economy is slowing and we just don't know how long that slowing glide path is, and potentially a fed that wants to ease looking for any excuse to ease. all of these conditions are making many investors think we should spend a lot of time under the 4% level, which is the reason i think when it reversed course there was such a quick bounce in rates. caught many off guard to some extent of the notion of the fixed income and treasury

markets being the perfect hedge against equities. long held is a very powerful axiom. it's not as powerful these days with debt and deficits, but during the heat of monday's volatility, we definitely didn't see that dynamic in place. maybe what's more important is how they ran from safety so quickly, just a couple of sessions afterwards. back to you, joe. >> almost back to 4% on the ten year. wonder if this is, in terms of equities, i wonder if this is really the -- you know, like a panacea? i wonder if we accelerate to the close today on a thursday. i don't know. this isn't a big enough data point to allay all the fears i don't think. is it? right? >> no. i don't think so either. i think when it comes to equities, there's a raft of issues that they're going to have to contend with. on the interest rate side, you know, we almost forget how this started, much of the interest

rate complex is, and i think it became clear again with all the discussions about the twos to tens right now hovering five basis points away from going positive. one intraday of a positive trade but haven't closed positive since july of '22. why? because the signals are distorted. i think that's why the fed has such a big problem deciding when they should cut rates, because they distorted their own backyard. >> okay, thanks, rick. steve liesman joining us now with more. >> this is unbelievable, joe. look at the ten year. >> 4%. >> how many basis points, the two year how many basis points, on the jobless stage. tells me two thing. one, amount of uncertainty and, b., also in what you might call a macroeconomic data desert right now. >> yeah. that important. >> hungry to figure which way the economy's going, and we don't have a lot of data to show it, and so what do we do? we're clinging to, there's a

tremendous amount of uncertainty out there. quickly, a long-term chart of jobless gains because people are relying oh much on it. it doesn't give awe very long-term signal. it's always, i imagine, like i see -- in the movies, like, those warnings you get when a tornado is coming? you get the warning and should be in the bunker already? kind of what jobless -- look at the long-term chart. a little warning. starts to tick up and then in recession by the time it reaches those levels that start to get you nervous about it. the reason is because what's happening in the jobless market is part of why they're going to tell you we're in a recession, because the jobs market is falling out of. a very good contemporary indicator where we are but not a lot of warns what's happening. it's what we got today and it's why the market is trading, like this is a jobs number. like, it's an employment number or the next mark, guys, retail monitor tomorrow. then we have retail sales next week. that will be kind of -- >> more coincidence or more like

loy? >> very coincidental. >> okay. so for today, feeling better. that's good. >> water in the desert. >> yeah. coming up, a conversation on that new data, and the economy, tm.h evercore founder roger alan we'll be right back.

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interest jumping, treasury yields rising on a lower than expected jobless claims. talk more about the economy and how economic questions are playing into the race for the white house. joining us is roger altman. evercore founder and senior chairman. so -- >> joe, good morning. >> good to see you. good morning. amp a., do you think the soft landing narrative is still the most likely outcome, and do you think that that vix high will, will that be it? it was over 50. do you think we've seen the worst? >> the first question in terms of the soft landing, joe, yes. i think that scenario is intact. and let's break it down. the labor market is slowing slightly but it's healthy. the unemployment rate didn't rise because of a drop in

demand. it rose because of continued labor force expansion, which is a real plus, and the three-month average on job creation, monthly job creation is 170,000, which is a good number. the employment population ratio is at a the 22-year high. the participation rate is up. not down. it's a healthy job market. inflation is moving in the right direction. we all know that. three-month annualized pce, 2.3% almost where the fed wants it to be and growth is solid. looks to be in the 2%-plus range right now. so very healthy environment. soft landing intact. is the recession risk zero? no. goldman sachs has it at 25%. jpm has it at 359 pe%, basicall their views, look trite me, likely scenario, yes, soft

landing, which is what we all want. >> i guess that doesn't necessarily tell us anything about whether stocks are a buy here, though, does it? so many things go into whether it's a good time to buy. we've had 24 pretty good months of stock market action. >> yeah. well i'm the last person on earth anybody should consult for advice on stocks, but, look, valuations are very high by any historical standard. >> yeah. >> and my reaction to this not worth much is it's just a mild correction. i mean, if you look, for example, at apple. you know, apple was at 120. declined by 10 points on monday to 110. about to go up to -- sorry. 180. 220, 210, 180. and you know, it's -- it's very high by all objective standards. by the way, my view deserves to be, but that strikes me as just

a mild correction. i think the scenario, there isn't a factor that i can see which would fundamentally up-end the equities market and bring on a sharp correction or a traditional correction, unless this majority view on the soft landing somehow proves wrong. i don't think it will, but that's the one thing that could upset the applecart. >> and a -- a vision in my mind of you sitting here, and i think i ask you whether you thought that vice president harris should attack to the center and i think you said you would urge her to do that and disappointed if she didn't. did you remember that? there are times where i think i can grudgingly drag stuff out of you, you're a business guy and a clinton democrat. are you pleased with the vice

presidential pick? do you think that that ticket can move to the center? or is it going to be -- just going to be labeled a san francisco democrat, progressive radical ticket? >> well, there's been a nearly miraculous reversal of fate for democrats when it comes to the outlook for the white house, the senate and the house. only a month ago democrats were pretty close to being dead in the water, and if you think -- if you set way back, the decision that the biden campaign made to seek that very unorthodox early debate, historically unprecedented, to have a debate in late june. ultimately, paved the way for president biden to step aside. >> right. >> and harris to become the

nominee. >> right, yeah, yes. >> demoralized to very exciting. now, it's going to be a great, close race. looks to be 50/50 or so right now. to the best of my knowledge, vice president harris, you know, is a full-throated supporter of the whole biden-harris agenda and the economic record of this administration. we may not agree on this, but i think it's been very good. if you look at job growth, you look at gdp growth. you look at inflation finally getting close to where we want it to be. you look at non-residential fixed investment, which has boomed. manufacturing. it's -- it's a good record. it's not perfect but it's a good record. >> right. >> i don't, i'm not aware of any aspect of her approach which is at fundamental variance. >> voters don't -- for whatever polls are worth voters still prefer trumponomics to bidenomics. >> i think that's all about the

cost of living and we can go back to that, if you want. >> which is important. >> roger, real quick. we talked to wes moore yesterday, governor from -- maryland. the governor of maryland. he was saying, talking about the regulatory sort of universe when it comes to antitrust and the like. you're in the banking business. that part matters to you and i think a whole view that this administration may have put a chill, if you will, on particular kinds of dealmaking, anti-trust. and others say, you know what? this kind of approach was in order. we haven't approached this in a long time. competition. we should be. he seemed to suggest he thought that harris actually might shift on some of those issues's what do you think? >> well, first, i think that the antitrust regime under president biden has been too extreme. maybe we did need a correction, because there were certain things that were allowed to go forth in earlier years, the trump years, which i might not,

for example, have favored from a competition policy point of view. whether vice president -- whether president harris if she achieves that, make as change, andrew, i don't know, honestly, it wouldn't surprise me. because there's so much controversy over jonathan canter and lina khan, but i wouldn't expect that change right out of the gate. and i'm not sure whether it would be made or it wouldn't. if i were, you know, one of the high-profile, for example, silicon valley-types clamoring publicly for lina khan's head, honestly, i wouldn't do that. i wouldn't do that because it fires up the progressives who then have a tug-of-war between the progressives and those who want a change. and it's not constructive. so i don't know if they'll be a change in that regard. it wouldn't surprise me but i

don't really know that. >> roger, okay. playing music. telling me we got to go, but good to have you on. see you coming up. joe lonsdale, venture capitalist on this week's tech sector volatility and on gauging support for former president trump and silicon valley. trump and silicon valley. "squawk box" will be right back. today's challenge is to play 9 holes without the middle of your bag. how does that sound? that sounds terrible. ♪♪ ♪♪ ♪♪ ♪♪

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welcome back to "squawk box." joining us, palantir cofounder and founder of apc and so many other things. we have had a heck of a week in the markets. i know in the private markets, but these things are interrelated and i'm curious which way you think our economy is moving at this point. >> it was fun to see the palantir earnings after two days of the markets all falling apart, saying, by the way, guys, this a.i. stuff is actually working, we're growing really fast. i think a lot of volatility this

week was tied to things like japanese banks, which obviously are an important part of the global economy but the story in the u.s. is our companies are working, our innovation economy is growing really quickly. >> that was the question. palantir has made this work. the question is, is that idiosyncratic? which is to say, is there something special going on at palantir that may not be going on across the industry, or do you think there is more meaningful legs to this? you saw the goldman-sachs report where they suggested, maybe, actually, we're not going to get the kind of sort of growth gains out of a.i., at least immediately, than some people had anticipated. >> i don't think this is happening immediately. i think if you talk to people like sam altman and open ai and others, we've failed so far. that said, the services industry in the u.s. is about $4.5 trillion in wages, probably about a third of that can be addressed and be made more productive with a.i. and higher

productivity, so it makes all of us wealthier. we're seeing health care billing, logistics billing, we're seeing this in private companies get to be a lot more productive. we're tripling, quadrupling productivity. that's not going to happen where it scales out to the whole economy overnight but listen, if we're back here and it's 2027, 2028, and we're not seeing that in productivity statistics, i'll be really surprised. >> what about things like apple? we watched warren buffett get out of half of his position, effectively, in the company, but more importantly, the question becomes, does a company like that have a sort of massive super cycle upgrade this fall, or is that something that you think ends up getting pushed out farther in terms of something that is truly game changing? >> there's lots of really cool stuff we could do with consumers in a.i. i use these little things all the time to ask them questions. it's helpful to figure out what's going on in the world, to draw pictures with your kids. does this change apple's business in the next year?

probably not. apple is facing really strong headwinds. it's not clear to me the new phones aren't nearly as good relative to the old phones versus what we saw ten years ago, so they may have a little bit of a tougher time. >> i want to move towards politics but i want to start with policy first. curious what your reaction was to the judges' decision against google this week, effectively calling it a monopoly. >> you know, i've been on this for a long time, little tech versus big tech. i'm a fighter for little tech, for the innovation economy. i think a lot of these big tech companies have become not only kind of slow and ideologically corrupted, i think they're basically monopolies. i think that's right. and so, the question is, what are we going to allow monopolies to do in our society? how much can they abuse their power? if something is affecting hundreds of millions of people, if tons of these things are tied into it, we need some rules around it. i'm not against going so far as to break some of them up. >> how do you feel, therefore, about regulation? we were talking to roger altman

earlier about, people have been critical of the ftc, critical of the department of justice, as it relates to deal making, as it relates to a much more aggressive approach under this current administration and i know that you're not a fan of this administration, so where do those -- how do you square that circle? >> so, what i would say is i'm not against being tough on big tech. i am against breaking principles, and i am against being radical. the lina khan lady, she's a total radical. she's not respected by her staff. she's a bully. she's trying to apply theories the courts have consistently struck down. she's going to companies for a tiny little acquisition that worked out. you can't make this stuff up. it's totally anti-capitalist, totally against companies in general. that the not what the ftc is sf supposed to be about. i'm on the side of holding big tech accountable. i'm not on the side of radical regulators who are against companies in general.

>> i'm wondering how thick your skin is at this point. if -- even if you're generous, and we had a venture capitalist on the other day, and the best he could say is if you're not backing a insurrectionist, all you're worried about, you have stacked your priorities to your wallet and your tax cuts and i think that might rub you the wrong way because i'm looking at the notes. there's about ten things you say -- reasons that venture capitalists or someone in silicon valley could back someone that may not be just about tax cuts. i won't read them for you, but they're pretty good ones. you know what i'm saying? i heard that, and it's the same guy who, you know, has been trying for 15 years to keep the dregs off his beach, his private beach, but virtue signaling, but go ahead. >> joe, i saw a poll yesterday, i think the jews in new york are

supporting trump slightly ahead of trump, and this is amazing how weak this administration is on foreign policy, how much right now they're holding israel back, knowing they're about to be attacked, not letting them strike the missile sites. in silicon valley right now, like she said she'd end private health insurance with bernie sanders. she's the only one who raised her hand about putting socialism in there. she said she's break the filibuster for the green new deal. that's how you destroy this company is you start putting in new states, stacking courts, doing things that end our system of functional society. i mean, there's no activist judge she doesn't like. the activist judge, the rule of law problem is much more on the left in this country. it's a huge problem. i mean, just -- you -- it goes on and on. she said she wanted to be on fracking. she changed her mind. it's not clear what she believes. a lot of people believe -- >> joe, we got to run. there's a big question about rule of law given that former president trump is not only been

convicted of crimes, i know you disagreed with the conviction, but also is being, you know, he's going to go on trial effectively, but we'll see if he ever does, but that's why the whole rule of law thing, i think, is a little bit -- >> it's a big thing to talk about, andrew. >> we'll have you back, i'm sure. "squawk box" is coming right back.

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justice eno enough time to the futures before we got to hand it over to "squawk on the street." the jobless claims turned higher after a good number for jobless claims. not too bad. i will see you soon at some point in the future. make sure you join us tomorrow. "squawk on the street" is next. ♪ good thursday morning, and welcome to "squawk on the street," i'm david faber with jim cramer live from post nine at the new york stock exchange. carl quintanilla is at the olympics in paris. let's give you a look at futures. we're setting up for a higher open. not sure that means much, of course, if you followed yesterday. we looked like we were set up for a higher open but not a higher close. and let's start with our road map this morning. not on the markets but on what's