slog for a number of airlines. you can see the year to date performance, jetblue is lower 1%. let's take a final check on the markets. dow looks like it would open up about 47 points higher in about half an hour from now. s&p 500 looking to open about 11 points higher. i want to thank you both for hanging out for the three-hour ride. make sure you join us tomorrow. "squawk on "squawk on the street" begins right now. ♪ good monday morning, welcome to "squawk on the street," i'm david faber, that is jim cramer. we are at post nine of the new york stock exchange. carl is traveling back from paris. he is going to be back tomorrow, all three of us, barring unforeseen circumstances, injury, you never know. >> stop it. >> i'm kidding. you know, like, in the game, you know? your knee. >> if you come out of the tunnel and go to the sideline.

>> that's what i'm saying. we're all back tomorrow, but you've got the two of us today and look like what's going to be a higher open. let's get to our road map this morning. shall we do that? starts with the s&p and the nasdaq coming off the fourth straight week of losses. investors are bracing for retail earnings. we're getting home depot on tuesday, walmart on thursday. and we get some inflation data as well. bank of america's brian moynihan had a strong message for the fed, urging the central bank to cut sooner rather than later. that is, cut interest rates. and we're going to keep an eye on starbucks. someone with elliott perhaps getting closer, other potential a activists. >> got a salesforce feel. >> we'll talk about it. let's start off, as you might expect, with these markets this morning. after a volatile week for stocks last week, we all know this time last week, we were looking sharply down on those futures. we were all becoming more

familiar with the end carry trade and what the impact of that is. we started to hear a lot of discussion of recession, and here we are a week later, after what was a volatile week, though, certainly ended on better terms, so to speak, for the bulls than it did as the week began. >> you really just caught it. we didn't know the end carry trade, and so when the market went down, we first initially thought, well, maybe it's rates. then we thought it's earnings. and then we realized it's an unwind, and speaking of unwind, i think people decide to use it, for the most part, as an opportunity, except for the companies, of course, that did not report good earnings. >> and any different in terms of sort of how you see things playing out? obviously, these are long weeks, so to speak, in august. liquidity is not what it typically is or at least it can be, so we do see sometimes through the years more volatility in this month. >> i think that people are looking at what went down that shouldn't have.

still. apropos of the keybanc acquisition, the banks themselves did not fare well after japan. it's almost like we forgot how good the quarters were. so, that's to me where the opportunities are. but david, look, i think that there's this -- it's just endless a.i. revulsion that is become so pat that if anyone actually said, you know what, i see something good, it might actually trigger something, because right now, what we know is that a.i. was much hyped and maybe it's going to come later in the blackwell slate and we have no idea how they're doing at nvidia because they're in quiet and the dell might be bloated, thank you, ben righteous, from mellius, and anything connected to the datacenter is a sell. that was the overwhelming theme even after the end carry trade smoke cleared. >> and that -- by the way, that was the theme going into the yen carry trade. >> so, it accentuated what was

happening, except for the banks, which were doing very well until this. >> and the banks is what -- the banks was, what, credit quality? i find that a little hard to imagine. >> i think we made it up. it wasn't credit quality. and by the way, david, one of the themes that no one wants to talk about, no one wants to stick their neck out, commercial real estate. albatross to opportunity somehow. depends on the city. i mean, obviously, every day, they can gin up an anti-san francisco story but it feels like whatever was the big worry about office real estate is gone. >> yeah, i think that may be overstating it as well. certainly, it's not gone. it's being managed, and the banks are coming to the point where they are willing to accept some of the significant writedowns, but they reserve for many of them. it seems to be going the way many had anticipated, which it will move along, and it will not present a crisis at any one moment. >> well put. it won't. >> but it's not good. it's still not good. >> it's not good.

i still don't -- because you can't tear them down. it's too hard. it's the tax consequences of making them into residentials too hard. >> you've got certain metropolitan areas that literally may end up being that -- the buildings are simply not inhabitable, and what do you do with them? >> ghost buildings. >> yeah. this is going to be an issue that we're dealing with for years to come. >> true. >> but it's impacting the financial system again. you can remember, we were talking about it during the mini-banking crisis during the spring of 2023. it was all the concern, as it should have been, and here we are a year and a half later. not so bad. >> well, i think this -- the japanese carry trade kind of wrecked the whole narrative. the narrative was, we're going to get to where there's rate cuts and that's why we can talk about mr. moynihan. then suddenly, we had this tsunami out of japan, and we say, maybe earnings are in trouble, and maybe nvidia is not

going to make the quarter? what is this one about? >> we've still got a few weeks to wait on that. >> that's the problem. >> to your point on the a.i. narrative changing a bit, won't it have to be that report that conceivably would do that? >> it has to be jensen himself coming on and saying, look, i've met with every major banker, and the demand is there, and the reason demand is there is because it's -- you get three to 4x return, which is what he says but he's been quiet. there's been companies that in quiet leak things to analysts, and then there are companies that are just a steel vault. finding out anything about nvidia -- a lot of made-up stuff about nvidia in the last few weeks. >> it starts today at about a $2.5 trillion market value. >> people hate that too. >> a lot less than it was, but more than it was not long ago.

>> now we know the thousand percent gain was completely fraudulent, and it's like, no. it had a trillion dollars almost lopped off. the company -- geez, the market cap took a hit. >> it did. the multiple got up there. >> right, but remember, this is always a multiple -- you have to think about this as a previous multiple. like, you realize that the company was selling 17 times earnings. >> there's been this argument that gets back to the larger one that at some point they're going to hit a wall or at some point the spending will hit a wall. not in 2025. certainly not this year. what's left of it. but perhaps in '26 or '27 where the hyperscalers, they're done. and what is that going to mean when you do a discounted cash flow evaluation of this company? are you willing to pay the multiple? that certainly seems to have circulated through some of that. >> you're right. >> it affected the stock price. >> i want to ban the term hypehy hyperscaler at this point. nobody knows what it means. >> who made that one up?

>> i did. no. but here's what i see -- >> what should we call them? >> i like tech titans. >> how about just giant planet-eating companies? >> i like that. it's like steven king. >> planet eaters. >> from now on. okay, the pe's already taken. let's just go over what really happened with these companies. >> okay. >> meta had a great quarter, and it was because he figured out how to use a.i. i've switched entirely to meta a.i. i no longer use chat or gemini or claude whatever, monet. i use -- i love it. i love it. it's a -- oh my god, it's so great. it's so much better than the other companies. it's coherent. it doesn't -- there's no dross. >> what platform do you use it on? >> what i do is i type in meta a.i., it's pretty interesting, it's like typing in -- you type in google. just like that. and it comes up, it's very

simple. they have like three ads that you have to deal with, just look at and dismiss. and then, please tell me the roth i.r.a. versus a traditional i.r.a. it is so succinct, and it is so good, and i mean, please tell me about caterpillar and its exposure to datacenters. >> three on the way out, by the way. >> go for roth. >> i can be your a.i. if you want. what was the question about caterpillar? >> i'm just saying, you can, i don't know, where's david faber's going to college? >> i can tell you that as well. >> she looked at four schools and he said this. no, i mean, what am i supposed to do? how do i demonstrate prowess? i think what i'm saying is that company had a good quarter. alphabet, we have no idea. >> no idea. >> and when i say alphabet, no idea. they lose this case, which they've done a substantial amount of work on with apple. >> they lost the case last week. by the way, that was in the mix. there were a lot of different

stories. the department of justice winning against alphabet, this antitrust case. >> big win >> obviously going to be appealed, could be many years in terms of the remedy. >> but they won. it's like microsoft. they won. >> and then blackwell with nvidia. there were any number of important news events last week that kept pressure on this sector. >> it was very hard to figure out what would really happen, really, what will happen with alphabet. but it will take a long time. but the question was, will apple be the loser? apple doesn't get the check from alphabet, and i have found -- done enough digging to say, if you're really worried about that, you're quite wrong. there will be other people who pay for the default. it won't matter. >> for the opportunity to be on the iphone. although wasn't the idea that you can't be the default? you have to have a choice, a number of choices? we don't know what any remedy would be. >> i thought jonathan kanter came in, he was fire-breathing against the pes.

>> the planet-eaters. >> the planet eaters. i like that more than -- hyperscaler was always meant to confuse. >> you're right. we talked about the use of language last week and who comes up with these things. i offered a few in terms of how the industry wants you to use these terms, and then you end up doing it, whether it be drawdown, which is ridiculous. you lost money. whether it be financial sponsor or even private equity, when really, you just want to say guys who do lbos and have a lot of leverage and can write off -- >> rich people do well. i said to you the other day that you want your taxes raised and that was meant to be that you make a lot of money. then it got turned into some ad campaign for trump. >> it did. >> that was impressive because my wife saw it. she's so appreciative. >> so, a lot of nice time in the household this weekend. >> fantastic. it was a game changer. >> was it? >> yeah, game changer. >> speaking of game changers, anything else that we should be

focused on in terms of market action before we move on to some of the movers this morning? >> i think i love this, and i really want to put this right to you. disney has this, you know, god-awful theme park number. it was awful. it was what destroyed the quarter. >> the operating income number. >> "no, jim, the quarter wasn't destroyed." >> you were positive on disney and i was the one that said that operating income from the parks is going to give people pause. >> let's just say you're right. >> i'm just -- i'm not -- >> here's what happened. >> you're the one who predicts where the stocks are going to go, not me. >> what was the weakest part of the quarter? it was theme parks. what did they do this weekend? >> they said, we're going to spend a ton on theme parks. enormous amount of money. >> not buying one in new mexico, which i'm done with. but david, a villains theme park which would make you so happy because you're such a curmudgeon >> i love that. >> is it cruella? who else? >> i don't know. i don't know.

>> i mean, i don't know. >> lex luthor. >> the hunter in "bambi." >> yeah. >> right? >> sure. the hunter in "bambi." >> that guy was no good. >> he was bad. >> do you want to go on that ride? >> no. >> what do you shoot on that? geez, that's horrible. anyway, disney, let's go back to it. they made up for the -- the guy was saying, who was running this division? well, turns out it's the guy they worship and we found out this weekend and how great it is and it got cruises and new lines and shut up, jim. but they really meant to tell you to shut up. >> thanks for sending the message. i appreciate it. okay. coming up, some news on the activism front. >> you got something? >> a little bit. i got a little on starbucks. we're going to give you a bit on that. of course, that stock was looking up. we'll tell you why. as for the overall market, also looking up ever so slightly, let's call it, in terms of the

open we're going to t ou16 nugeabt mites from now. a lot more "squawk on the street" for you straight ahead. car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com [city noise] investment opportunities are everywhere you turn. do you charge forward? freeze in your tracks? (♪♪)

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welcome back. going to keep an eye on shares of starbucks this morning. of course, the stock jim and i have discussed a great deal. what i can share at this point, there was a story over the weekend or on friday that starboard, an activist we all know well, has taken a stake there. doesn't appear, at least based on what i've been able to understand at this point, that there's necessarily a story around that at this point. activists do occasionally just own stocks and they kind of wait and see, and maybe they will do something at some point, but they very well may not. and that certainly seems to be the case here in terms of what's been reported by "the journal" with starboard owning a stake. they're the focus that we have had and that continues to be the case, and i think for the market, rightly so, is on elliott, and the significant

ownership stake that that company or that fund has in starbucks, and what it is trying to accomplish, namely, from what i certainly understand, and i think you do, getting somebody, if not one or more directors on the board, what i have heard most often is jesse cohen, who runs the activist practice at elliott, being proposed as a director, some back and forth around that, but perhaps we get a settlement near term that does involve mr. cohen joining the board. can't say that with certainty, but certainly something that i have been hearing any number of times is a real possibility. >> you and i know him. i know him by reputation. >> i know jesse, yeah. >> if he got on the board, it would be meaningful because i look at the board and the board is made up of really busy people and not in ta negative way. satya had to leave it because he doesn't have time. >> satya nadella stepped off the board. this would be essentially replacing his place on the

board. >> if this man went on the board, it would be of some significance because i think the problem is operational. they have a three-pronged plan that laxman has, and i don't think people believe it addresses -- everyone seems to have a -- i mean, andrew sorkin had -- everyone has a -- an idea. andrew sorkin would say, we need a 99-cent coffee. i was listening, and i said, everyone has their own view, which, by the way, i share his. it is very expensive. i had an $8 starbucks experience after waiting in line for a long time at one of the stupid airport ones, which everybody knows they don't run, and they have no control over, and they just -- the last guy said you can't worry about it, jim, it doesn't mean anything, and i come back and say, are you kidding me? it's your name plate. have some guts and tell the franchise that we're breaking the contract, and you can sue us. but what i see with starbucks is a company that is not -- spin off china, this, that. it's operationally questionable. and that's something that is

never questioned. and jesse cohen would question it. >> and it may well be the case that that is, in fact, what occurs. that said, it can take some time to fix these kind of things if, in fact, there are fixes to be had. >> it would be faster if you said, listen, we want three on the board, and they say, no. and then there's a race, a proxy. then it would -- now, we know, from disney, you can have an up and down thing there. but this is not -- this is different. >> elliott does -- i mean, they do engage in proxy fights, but not often. you'd have to look at history. >> constellation, they put on one guy. >> yep. >> and the problem is they got in there and said, our guy is bill, the ceo, and he's doing everything. and it still hasn't moved, but we advise him. he likes our advice. he takes it. but the stock still doesn't go up. that's the large part because people are worried about glp-1 and also president trump. >> that happens a lot in activist situations as well.

not anything that an activist touches turns to gold. >> i like that. >> you do? >> yeah, i really like that. do you think an activist should get involved with nvidia because it's only up 100%? >> somebody should explain to jensen huang what's really going on because i don't think he upstairs this market. >> i'll tell you what my kids bought me for father's day. >> that happened a while ago. >> that's not the point. an unbelievable leather jacket that looks just like jensen. >> really? >> yeah, and i feel like jensen when i put it on, meaning, down 15% and not as good as i thought. that is what the -- can you imagine, david, the number one in the s&p and people are complaining? i saw someone this weekend who said to me, so, your dog was named nvidia. like -- >> like you didn't do anybody a favor by recommending it for the last eight years or whatever. >> nvidia, nvidia, thanks for nothing. >> you can't take it so hard. >> i take it personally. >> i know you do. that's really not easy.

>> everything we have. >> all right. well, what else we have is the "mad dash" coming up, so jim's going to get ready for that. we got a few movers we want to get to this morning. let's give you another look at futures. we are set up for a higher open here on this august monday morning. don't go anywhere. 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 is it me... or is work not working? at least, not the way it could work. your people are buried in busy work. and you might be thinking... can ai make it all work?

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all right, opening bell is just a few minutes away. let's take a look at the ten-year. you know, a week ago at this time, we hit 3.68% just to give you a sense as to the importance of deals as well in terms of the overall movements in the market. >> it's chimerical, by the way. it's like solana, who was in the olympics, and medaled. we actually have solana -- solana medaled. and they tried to -- romania tried to take it away. >> by the way, you can catch this incredible show any time, anywhere, by listening to and following the "squawk on the street: opening bell" podcast.

it's time to feed the dogs real food, not highly processed pellets. the farmer's dog is fresh food made with whole meat and veggies. it's not dry food. it's not wet food. it's just real food. it's an idea whose time has come.

>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. all right, let's get to a "mad dash" a minute half before we get to the opening bell. the food group in focus. >> coleman has a good piece out today because we're all trying

to figure out where to put these stocks. they trade as a unit. they shouldn't. they start with a buy for conagra, which is probably one of the most hated stocks in the group. they like their selection. and then, david, a little paris action here. general mills, you buy. kra kraft heinz, you sell. mondelez, you buy. hershey, you sell. hershey has been so sticky and doesn't go down, but mondelez has been the winner in the group. kraft heinz, it's done nothing for years. >> aren't they trying to sell oscar mayer or something? >> that's the worst -- conagra profile is not that great, but it appeals to younger people because they have the single servings. kraft heinz, i don't know. my mom always gave me the slices that were in cellophane, whatever. enjoy yourself. >> they're delicious on a cheeseburger. >> that, my friend, is saying something. thank you for bringing everything you have.

>> delicious on a cheeseburger. nothing wrong with a good cheeseburger every so often. >> going to move conagra. >> we'll get back to the food. look at the realtime exchange. perhaps a bit more green on that board here. doing the honors is texas pacific celebrating its listing anniversary. over at the nasdaq, international youth foundation, connects young people to educational and employment opportunities around the globe. you mentioned food group. >> yes. >> why not just start on the one name that over the weekend everybody was pinging me and wondering and are we going to get a deal? >> kellenova. >> no deal this morning. my understanding is mars is still at it, and the hope seems to be soon. i had said this time last week, when others were reporting imminent, i had said, not. however, the leak may have been

a bit early, but nonetheless, i think there is a hope and expectation they're going to get to the finish line there. i wish i had more detail. obviously, we know it will be a cash transaction, given mars is a private company. they will not be issuing stock. they have the wherewithal to do it. they certainly can have the financing to do it. they have plenty of cash on hand as well. >> they have had a lot of profiles. >> we are waiting for what would be one of the larger deals of the year and we're still waiting. a lot of hope and fervor over the weekend and a lot of tech -- it's happening, it's coming. no. not here yet. >> what's interesting about mars, and i have met with them, they are a great company. but they're not -- >> they're run by another member of the mars family, right? the generations down. >> they've got a good team at the top, but i will tell you this. these guys are very savvy, and i say that because i think there's a lot of people here who say, why would anyone want kellanova? which is a snack company, pringles, pop tarts, in a way where glp-1 makes your sex life

better, you get to live to a hundred and you don't eat -- i don't know, maybe you don't eat rice krispies for all i know. glp-1, lilly has pushed again. there's an informative call, right? i'm not even going to mention, you know, who made that call because i have no desire to make fun of -- well, never mind. i'm going to hold off. >> you're not going to make fun of them? all right. lilly shares had a great week last week after -- >> surprise people. surprise deutsche bank. >> that little circle at the end. you can see that move up. there. that's much better. >> well, david ricks, can we just talk about david ricks? >> any time you want to talk about david ricks, happy to do that. >> ricks knew that what's key is building is plants, and how hard it is. so, no one understands that, because everybody just says, oh, viking's got something good. roche has something good, maybe pfizer is going to buy somebody.

amgen did not have something good, and yet they claimed too have something good. amgen's quarter was the big disappointment of the pharmacies. maybe lilly has a great plan and their drug is better than novo nordisk. theirs is more effective than novo nordisk. >> jim, have we really seen a food company where we feel like they have said, we're seeing an absolute effect or a restaurant company from -- >> not one. >> none. not one >> not one. and look, it is true that there's -- i mean, it's not like there's 20 million people on it. but not one, because who would ever admit to that? >> i know. and yet -- >> hey, our business is being killed by something that's really great for you. go get this because it's better than our food? no one wants to admit it, but they all seem to have data, and i mean this. pepsico had data before and after, and they did a lot of focus groups, and that's

frito-lay, and ramon definitely showed me, jim, you're wrong, and i believe it. his data is so impeccable. >> his data indicating that there has not been an impact from the use of glp-1s? >> no impact. >> and as they become more broadly used through the population and at some point an oral formulation comes and you have more people on them and it's covered by insurance, broadly speaking and even medicare, does that change? >> i think that has to. there's just too much evidence that it only will. but you have an outfit like conagra, which is recommended by goldman. they have a portfolio that includes slim jims, preenlt, and you have to have more protein, and they -- they claimed on "mad money," look, we've got the best snack and protein portfolio, and goldman bought that one. and -- >> well, right, as we discussed, you lose a lot of weight but also muscle mass, especially for

older people. >> you said people don't go out. >> they don't go to restaurants. why would you go to a restaurant? >> they're going to need psychiatric -- >> you only eat half your portion or if you're both on it with your spouse, whoever that might be, then maybe you only get one order and split it. >> i thought that meant because if people stay home -- >> i have seen people leave half their plate. >> tony hsu. >> from doordash. >> yeah. if he came out and said, look, i've looked at all the receipts and people seem to have shiflted away from restaurants that are really bad for you or that the -- remember, doordash had great numbers. is that because people are staying off because of glp? >> i don't even know if it's bad for you/good for you. i think it's just portion size. >> portion size would still mean that you would order from doordash. they had one of the best quarters. by the way, can we just say, david, that something happened.

the companies had great quarters, got all messed up by the end carry, so we ended up not even realizing who had good quarters. one of my favorite stocks is wells fargo, charlie scharf. his stock went from $60 to $52 and nothing happened. there's something noteworthy. >> you mentioned at the top of the program, it's worth revisiting now. the banks last week -- now, listen, jpmorgan shares are still up 21%, but to your point, wells fargo now only has about an 8% gain for the year. >> it was up huge. >> it is lagging the s&p. >> and speaking of -- >> and potentially the rest of the group with bank of america -- >> how about key taking the matter in its own hands? >> let's come to wells for a second. why did it go down? what's the concern here? was it really credit quality? >> no, company doesn't know. >> i pointed out private equity as well where we saw shares down 21% in three sessions. >> i know wells said they weren't going to buy back as much stock as they had previous

but i did a piece this weekend for club members and i talked about the idea that you're supposed to -- the stock will be down, and people foment what happened but nothing what happened. i could come back and say, it was the commercial real estate. no, it was the bond portfolio. no, the bond portfolio is really good. it's the expense control. no, expense was good. it was the sweep that the s.e.c. -- no, but that turned out to be okay. i don't have a reason, and i gave -- you got something? >> i can't hear, so i got to push my thing in. i'm like that old guy. i just do this now. >> you should do this. like "get smart." >> i'm going deaf in this ear. i can't hear them. >> but i do think that key indicates that if you want to take matters in your own hand or if you have a bond portfolio, it's not that good. scotia bank is anxious to come in there. >> let's go through the deal itself. it's interesting. and they're issuing new shares at $17.17, and i'm going to do

the 11:00 today with sara, so i will be a part of that interview. >> i tried to get that interview so many times. >> i don't know. maybe i won't be, but i'll be there. >> tell him i said hi. >> let's go through the actually deal. $17.17 a share. that's an 11% premium for the volume weighted average the last 20 trading days. $2.8 billion is essentially the investment from scotia bank where they will own 14.9%. so, right below that 15% threshold. two stages, initial investment of 4.9%, additional investment of 10%, and again, total pro forma ownership will be 14.9%. and they're calling it a strategic investment, and they're going to take the money to identify priority markets, and basically help them grow, i guess, is the plan here. >> the rap against key was the total no growth. i mean, just a really good cleveland bank with a very big

yield, but then we suddenly realized, they have a bond portfolio that they want to address. nothing wrong with it but they have yet to address it. but david, the -- all the regulatory concerns that had kind of been in the ether about this company are now gone. i like the tangible book value going up 10%. and obviously, they're not a takeover candidate now. >> no. >> but this is a reason -- you can ask gorman about it. i have been dealing with huntington bank shares, and that's another bank that's doing incredibly well, but it just doesn't get its due. maybe this can become pnc, which is synonymous for whatever they do, no matter how good or bad. >> whether warranted or not, it's concerns about commercial real estate, just overall concerns now in terms of, we're headed into a slower period of economic growth or recession, what credit quality going to look like. >> the midwest is boomtown. someone the other day was telling me i ought to go to toledo, that toledo has never been this good and i didn't

realize that toledo was ever good. >> toledo? >> toledo. i got rejected by the toledo blade something or other, one of the 53 papers that rejected me, and i have them all on a wall. most of them are gone, and i feel pretty good about it. >> i know. they all lived to regret it, jim. they did. they all lived to regret it. >> any one of them could have done it. >> you couldi still be the columnist for the toledo blade and you would be a beloved figure in the community. >> and i would go to the elks every night. >> it would have been a good life. too bad. >> instead, i chose to partner with you. how's sofi doing? >> i don't know. you want to hear what moynihan had to say to morgan brennan? the ceo of bank of america. he has some relatively pointed thoughts about the fed and rates. take a listen. >> they've told people rates

probably aren't going to go up but if they don't start taking them down relatively soon, you could disspirit the american consumer. once the american consumer start going very negative, it's hard to get them back. >> i guess they're not there yet, but you know where they are, jim, is on travel. i mean, that was sort of another takeaway. we began the program talking about disney and the parks, of course, but it was more than that. it was airbnb. it was expedia. any number of at least data points that seem to show there is a slowdown in the u.s. consumer in terms of what they're spending on travel. >> we now feel that everybody from disney to united, they haven't rolled back the prices enough. only the cruise lines have really represented a bargain. i had some relative prices for cruise lines versus hotels, marriott versus cruise line. it costs a fifth for a week than marriott costs. and i think it's significant that bank of america was the best quarter of the majors, and then when we heard that warren

buffett had been continually selling it, which we knew, it knocked it down. that was another thing that threw a little acetyline on the fire. >> and a lot of bank of america. >> but -- we know nothing about what he's doing so we can speculate forever what he is doing. >> disturbing story in the "wall street journal" about bank of america. we have seen these kind of stories before, about those very junior associates who come in and work hundred-hour weeks, and "the journal" detailing the fact that many of them are pressured not to actually sign time sheets so that the senior executives or at least those who monitor the things -- these things know just how many hours they're working. you know, at this point, go to law school, man. i'm telling you. i mean, you're going to work really hard, but you're going to make more money. if it's about the money. >> i got bad news for you. the law firms are going to hire

far fewer people because a.i. -- a.i. is -- >> all the lawyers i know make more money than the bankers except the most senior bankers. >> i do worry -- >> you're going to work a hundred hours a week. you want to get to private equity or the lbo guys. they're not anymore. >> suggesting someone goes to law school is a genuine mistake. >> why? >> because they have found the law firms have adopted a.i. -- >> i'm not seeing any diminution at this point. >> let's see how many they have in the fall. >> really? >> yeah. >> not this fall. maybe a few falls from now. >> i think they're trying to figure out how much proofreading there is and that you -- a.i.'s a better proofreader than an individual. it's really good at that. >> it is. but you still need somebody to deal with the clients in some way. >> people are productive. why do you need all the people? >> don't worry about that clause. worry about that one. let me write this one for you. >> if they fired one person at

any of these banks, di -- >> make sure it's ironclad so it can't be challenged by somebody like elon musk who wants to get out of the deal. >> the olympics of the right tonight. >> elon musk is going to have president trump and obviously republican nominee for president trump as his guest. >> that could be a very exciting thing. i'm going to listen to that. i don't know. while i'm doing work. i got a speech i got to give wednesday for the investing club. i'll put that on in the background. is that possible to have that on in the background? >> could be fascinating. or not. >> david, you interviewed musk. >> a long time ago. >> that was a fascinating interview. >> it was. but donald is not interviewing elon. i don't believe. >> well, no. that would be interesting. i don't know. i mean, because it's one of the things about president trump is if you think you have an idea what he's going to say, then you've got the edge on his adviser.

>> you never know where things are going to go. vice president harris did come out over the weekend and say that she would want the fed to remain independent. >> independent. yeah. she did not say, i made a lot of money and therefore i can tell the fed what to do. >> no. >> which there's a lot of people who made a lot of money. in that sense, maybe jonathan gray should run for president. >> jon gray. >> he made a lot of money. >> he's the president of blackstone >> i thought you had the interview. >> well -- >> did i do that? i shouldn't have said anything. i'm sorry. >> ixnay. zip it. >> how about that sweet green? >> how about the who? >> i'm just looking at the paper. >> i'll give you run of the board now before we take a break. any category you want. >> anything? >> yes. >> the ruble. the ruble dropping 4%. this is a little -- this is -- >> i didn't expect you were going to russian history. >> ukraine. >> for $500. >> people don't understand the significance of the last great

tank battle, world war ii, and the germans lost it. they had already lost the war. it was a war against the jews, and timothy snider will tell you that. but it was also his great blog. i think the battle has tremendous significance for all the great patriotic historians. >> i can't remember the last time we talked about the war in ukraine. >> it ain't in ukraine. >> you're talking about the recent incursion into the russian territory. >> the nazis thought they had that one won, but the russians beat the nazis. >> i didn't think you would go there. now i've got control of the board. i'm just going to go back to your favorite, nvidia, because the stock is up 2.5%. >> they do these daily options. you ever seen that? and then they do their lineup in draftkings and daily options. is there anything different? daily. yes, there is. draftkings is more regigorous. >> it's an important point in

the gamification of the stock market. >> younger people, when i -- i happened to be at a fabulous wedding this weekend, my friend, rob's son, and i always ask people, what's going on? and the younger people, david, they are doing zero options, and they're doing it on nvidia. and they're doing it on whatever is the hot stock of the day. and instead of -- i asked anyone, has anyone invested? no one investing. but it doesn't matter. fabulous wedding. but there was absolutely no substance to anybody's trade. it might as well have been daily fantasy. >> we've been going that way for a long time. >> it's discouraging. >> the average hold time for a mutual fund investor continues to contract. >> qualcomm down six because of stories that apple is integrating more and may not need qualcomm. apple's been trying to integrate for ages. broadcom should not be down unless you think that there is -- again, datacenter. if you think datacenter's bad.

>> okay. all right. that does it. >> no. >> yeah. >> that's it. time for a bond report. >> because i had cleveland-cliffs talking about datacenter. but that's tonight's guest. >> cleveland-cliffs? >> yeah. >> i'm going to have to save that one. >> lorenzo? >> lorenco. come on, man. >> we'll talk usw and u.s. steel at some point. >> oh, my, i wanted to ask you if he's going to come back. >> look at that. >> lowball price versus nippon steel and he actually makes fun of nippon steel. it's an amazing comment. >> the next big important thing for u.s. steel is the arbitration between u.s. steel and nippon. that's on the 15th, the arbitrator is going to hear that, august 15th. only a few days away from that. >> is that true? give me everything ahead of my interview. >> we'll revisit that or bring dave mccaul on from the united

steelworkers. let's head to break. >> he's a friend of laurenco. >> let's look at the bond report. check out treasurys are faring this morning. we're hanging in there, a bit below 4%, and again that two-year, not really too much movement. we'll be back after this. is it possible to be more capable? and more practical? be able to perform here. and here. make a statement while barely making a sound. and command the road, as well as what lies ahead.

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while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there. david, of course, it's l lorenzo. >> qualcomm, we mentioned it. >> we didn't talk about warner brothers. >> there's always time. they may be running out of time. i don't know. >> david, take that back. >> i take it back. i take it back. that stock below 7. charter down as well.

qualcomm -- >> cable. >> don't see that as often there, those concerns about apple perhaps not using as many -- >> remember they were at war, remember how long they were at war for. >> oh, my. ve--t to tell you, cristiano was ner never wavered. >> no. but they solved all of that a number of years back. we're back after this with stop trading with jim.

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look at that face. what's the problem? >> because ever core comes out and says tactical sales on lowe's and target and two companies i really like. i respect the fact that they must have done a lot of work. to put a tactical sale sell you're sticking your neck out. >> home depot and walmart you have to come this week, not unimportant in terms of -- >> i think home depot will be okay and walmart will be fabulous. >> walmart will benefit from the consumer trade down. they rolled back prices big and that's what happened. people went to walmart and costco and they, of course, went to amazon. >> what do you got on the big show tonight? >> i have lorenzo who is unbelievable. doesn't like if you call him lorenco. remember that. >> from cleveland cliffs.

talk to him about u.s. steel, you know that. >> i want to go there. he says had has a lot of friends -- got 600 people in a factory set to go, and they're doing transformers. >> fascinating in terms of the union opposition spending nippon has said they will do -- >> he attacks. he attacked the nippon steel for hiring mike pompeo and said that's ridiculous, pompeo is not a good guy. i will ask point blank, will he go, if nippon steel is rejected by our government will he go back with a $40 bid and go over the steelco acquisition. >> awesome. i will' see you later on on tv and right here. stocks easing earlier gains. we're back right after this. eni. [sound of airplane overhead] even the ground is moving for me! y'all seeing this? wild! and i don't even have to activate anything.

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good monday morning. welcome to another hour of

"squawk on the street." i'm sara eisen with david faber live at post nine from the new york stock exchange. carl's traveling back from paris and see him back here tomorrow. take a look at stocks this morning. the s&p 500 down a quarter of 1%. nothing happened in the last week, right? i didn't miss anything. >> nothing we needed you for, sara. >> nothing with the yen carry trade. the market unchanged after that. the s&p right now. what's green on the screen is technology and energy. everything else is red. real estate, consumer discretionary and industrials all weaker. that's why the nasdaq is out performing a little bit. down 0.2%. the one-week change on the nasdaq up 3%. the year-to-date gains now up a little more than 11% right now. you've got starbucks, super micro, nvidia, take two interactive helping the nasdaq. take a look at treasuries after we saw that giant rally last week to start the week, we are seeing a little bit of a bid this morning as well. the 10-year note yield 3.9% after yields have come off of

the lows. two year at 4%. 30 minutes into the trading session, three movers we're watching. keycorp shares surging on news scotia bank is making a $2.8 billion minority investment in the name with plans to, quote, explore commercial opportunities to partner together in the future. the company's ceo joins us next hour on "money movers." qualcomm is lagging today, downgraded to neutral by wolf research as analysts say apple's efforts to produce an in-house modem could be coming to fruition, which would cause a major revenue hit for qualcomm. shares down more than 3.5%. then watch monday.com swinging to a profit in the second quarter and raising its revenue guidance from the year. the stock has been an outperformer on the year. don't talk about it too much. >> no, i don't know what they do, do you? >> not much. >> okay. >> up 8%. >> wow. a $12 billion market value. >> there you go. >> always amazed sometimes as long as i've done this and you can give me a name and i've

never heard of it. >> that's why we have cramer he knows every name and what to do with them. >> every name. >> this is a big week. broader picture is that we will learn a lot of information about the economy this week, and that's what we need after a growth scare, questions about how many fed cuts there are going to be, so the really highlight of the week is wednesday with cpi, but interestingly, we get ppi before cpi this week which doesn't always happen. that's the wholesale inflation read. could be a market mover. feeds more into the fed's pce measure. thursday retail sales will be an important signal on what consumer is doing for july. friday caps off with housing starts. a few more earnings to get to as well this week, mostly on the consumer. but here's the story, david. the economy is not that bad, so for all those chalking up the drama of last week to a growth scare, the fed is way behind the curve, they need to do an emergency rate cut, they have to -- >> we heard it all last week. everybody was recession,

recession, recession is coming. >> recession. have you checked the atlanta fed gdp tracker. first of all the changes in the fed fund's future, where the market thinks mts fed is going to go. now there's 50-50 odds they go double in september to try to make up for going too late because of the weak jobs report. we'll get another jobs report, by the way, before the september meeting in the first week of september for august. so we'll see. there's now exuberance we're going to get more cuts than expected. are we in a place where we were coming into this year, where the market got overly excited about cuts and that wasn't justified? that's why this week is important. fed chair powell will speak the following week at jackson hole to help give a signal. cpi no doubt very important. i just wanted to point out the atlanta fed gdp tracker, we are still tracking for 2.9% growth this quarter. that's not an economy that is necessarily falling into a recession. now, consumer spending is a big part of it. there's the line of where its

gone, the forecast for the atlanta fed gdp. it hasn't moved hatch and hasn't moved down, so that's good. it's moved up. the previous forecast you can see was for 2.5% growth, and then it recently moved up to 2.9% growth. >> what's the blue chip consensus? what is that? >> lower growth. that's like in the 2% range. >> got it rnlgs atlanta fed tracks above that and has been not necessarily exactly accurate, but not off in terms of the gdp. so gdp hasn't been a big problem. apollo, torsten slok has been on this thing the market is too excited ate rate cuts and everything is fine. i took one chart from apollo the weekly debit and credit card spending, this is a consumer driven economy. >> there was a lot of concern about travel related spending. we talked about that whether disney parks which can be expennive, whether it was airbnb or expedia, things seem to be

tra dratsing a bit. >> that should be expected. hot coming out of covid. pent up demand. people prioritized. we've had a few quarters, years really, to digest high inflation rates, high interest rates, which do have an impact on the consumer, it would be normal for things too cool off. something i will be looking for in the cpi report how tells prices because they factor into shelter and could put downward pressure on that overall number. looking for a 0.2% read overall. we're monitoring the turn, right, david, and the fed needs to be ware of the turn and the economy and get ahead of it and why the market has been throwing a fit, they haven't been too anticipatory because of the turn in the economy and plenty of charts you can look at on the employment front. one chart i picked up that i don't think is getting play, is temp hiring, ticked up to a three-year high, something worth watching. the amount of people working

part-time for economic reasons because it's a signal that things have turned for the worse and it's the kind of thing that the fed should be looking at. doesn't mean they need to emergency cut or go 50 basis points, i'm not sure, but -- >> unlikely. emergency cut, i mean -- >> doesn't it mean they should have gone in july because they should have been a little more forward thinking. >> what did you make of brian moya han's comments over the weekend, he isn't say that, but sort of implied in a way. >> he implied they need to go quickly to get ahead of the weakness and that the consumer is starting to show weakness. he didn't say recession. >> no. i'm not sure what quickly means, september 18th or -- >> that would be the next time. i think he was urging -- by the way, he said as much on earnings with us a few weeks ago basically, that consumers showing a little bit of weakness and it's important for the fed to get ahead of that. so i think that's the prevailing view on wall street right now.

the question is how much and where do they go, and i'm not sure they even know the answer to that. we'll see if inflation keeps giving them backing. that's the question for this week. more on the road ahead for stocks because our next guest remains bullish on large cap values, dividend payers and what they call old-school capex beneficiaries. bank of america securities head of u.s. equity strategist joins us now. savita, on this conversation, do you think the market is too ahead of what the fed is going to do on the cutting front and that presents a risk? >> you know, i think that there is some impetus here to quell market fears around a little bit of a softening we're seeing in the economy, and admittedly our economists have been calling for a deceleration and we're seeing that now. i think the idea that we're going to see a real hard landing, unless the fed cuts excessively, is not necessarily the story. so, you know, i would argue that what we're seeing is, a

reasonably, you know, healthy economy, it's slowing, the fed has controlled inflation. we're now at a point where the fed can begin to cut rates and that's good news for stocks. we're at a point where a lot of the more cyclical companies are pricing in a really tough downturn. we've already started to see tech companies really under perform. i think probably the driver there is the hedge funds and mutual fund managers are essentially derisking their portfolios of some of the leadership that may start to fade, but i do think that we're at a point where you don't necessarily want to sell the market at wholesale, you want to pick your spots. i really like large cap value stocks here. i think that's an area of the market that's under appreciated and it's poised to do quite well in the months, if not years. >> doesn't large cap value,

doesn't any value need an economy that's in growth mode and there are questions about that right now? >> indeed. that's a great point. so we do need an acceleration in growth in order for large cap value to outperform, and where we're seeing a bit of an uptick is maybe not in consumer spending trends or in services spending, but we are seeing an uptrend in some of the areas of the economy that have been in a recession like manufacturing, like, you know, some of the infrastructure programs that have been a big contributor to economic growth over the last couple of years are starting to come back a little bit. so, you know, when you look at the data, there are cross currents and there have been cross currents for the last few years since covid. we've been in this disconnected market environment and i think what we're seeing now is the slow down in services, which was to be expected, and potentially

a base trend in goods demand. we expect that to sort of kick in and drive earnings growth from here as well as the fact that -- and i pointed this out on your show a couple weeks ago -- the old-school capex idea is really more of a must-do than a nice to do because we're sitting on u.s. infrastructure that is [ inaudible ] hasn't seen a refreshishment spend cycle in a very, very long time and meanwhile we've brought all of this economic activity back from china to the u.s., so i think there are a lot of drivers for traditional capex cycle and business investment cycle. now that's something new. we haven't seen one of those in a very long time and i think that's why investors are -- to deploy capital to large cap value. we're really at a point where

those types of companies are likely to outperform. >> i know you have this list of 42 stocks that can help you sleep at night. you screen for low beta, high quality s&p stocks that your analysts at bofa had a buy on. does that sweep up a lot of these also names that you're talking about in terms of large cap value? >> not necessarily. this is more of a defensive list for folks that are looking for a place to sock away capital during the summer months, you know, potential volatility ahead of the election, you know, some question marks around economic growth and, you know, really the idea of what is fed policy, what are they going to do. as you pointed out earlier, i don't know what the fed knows exactly what they're going to do, but, you know, in this interim period where we're in, august to september period of

low liquidity tightened volatility, potential uncertainty heading foot election, i think that's the sleep at night screen is more around, you know, how do we sleep at night and find stocks that can deliver returns and total returns, but allow us, you know, to kind of not worry too much about the trajectory of the economy. longer term, i think large cap value is a little bit more of a cyclical tilt makes sense, especially companies tied to this manufacturing cycle. i would look for industrials, financials, you know, materials, some of these companies that haven't necessarily shown strong returns over the last 12 months, but could potentially benefit from an uptrend in these other areas. >> we'll leave it there. thank you for kicking off the week with us with some strategy. appreciate it. thank you. >> from bank of america. as we head to break our road map for the rest of the hour. a make or break week when it comes to inflation and the

consumer. wells fargo head of equity strategy joins us with his playbook. >> we'll get the pulse of the consumer particularly related to travel. expedia's new ceo joining us on set for her first broadcast interview since taking the helm much that company. >> a new billionaire topping the list of china's richt. o it is and where the money is coming from. big show still ahead. dow down 135. s&p going positive again. "squawk on the street" will be right back. at aes, our energy solutions have powered the world forward for more than 40 years. and as demand continues to scale, so do our solutions. introducing maximo - our new ai-enabled solar robot. max makes construction faster, safer and more cost effective than ever before. and with max doing the heavy lifting, even more people can join the team. solar energy is changing the world,

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exclusive all america survey. we're taking a look at a key cohort this election cycle, swing voters. let's get over to steve liesman who has the numbers for us. steve? >> hey, david, good morning. with former president trump and vice president harris neck and neck in cnbc all economic survey and other polls showing harris is in the lead in some other polls, the election will come down to the perplexing group called swing voters. they look like republicans in some ways and democrats in others. we define them somewhat different definition as independents or undecided voters or harris voters who want control republican control of congress or democrats who want democratic control of voters. it's nearly 7% for this swing group because the sample is smaller. how small? they represent 20% of voters but

31% of latinos in our survey. most other groups look more like average voters and their share of voters who could be winnable by either campaign. what stands out most how much they dislike former president trump. swing voters are net negative on trump by minus 39%. that compares to minus 9% for average voters. net approval of harris is same as the broader sample. looks more democratic in that regard. by a 28% to 8 margin they see themselves as better off financially under trump than harris, except look at that huge majority of 60% of these folks who don't think it matters who is president the for their financial well being. far more than the average voters. on the issues more likely to look like republicans on the importance of the economy, crime, safety, taxes, but they look more like democrats in their concern for the issues of health care, abortion, and social security. so for former president trump

the weight of the white house looks to be improving his approval rating among swing voters. for vice president harris, againing their confidence on steering the economy. both campaigns could do a better job appealing to latinos. guys? i've been seeing these polls suggesting trust in vice president harris on the economy, and i wonder what we've heard from her, steve, on her economic vision or policy or where she stands? is it just this idea it's more status quo from the biden administration? >> it could be that, sara. so the ft question is an interesting one. they ask, who do you trust moron economy? and that breaks 42% to 41% for vice president harris. what i think is interesting about that is that this word "trust" i believe does a lot of heavy lifting in this question because harris's approval rating has risen quite a bit, and, so i

wonder if that's the thing that's really moving this thing. her number went up 7 points in that while trump's remained the same. and then you look at another question they asked, which is, under whom are you better off financially, and that breaks 33 to 42 for trump. so that makes me -- and that's a little bit more like our poll. that makes me think that word "trust" is really important in how that question is asked at the ft. >> got it. thank you. steve liesman. on the swing voter. after the break the new ceo of expedia joins us with her read on the consumer. her first broadcast interview since taking the helm. that is next. tonight go anywhere. benefits they could really use. extra benefits they may be eligible to receive at no extra cost. and if you have medicare and medicaid, you may be able to get extra benefits, too, through a humana medicare advantage dual-eligible special needs plan. call now to see if there's a plan in

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want to win, win with shopify. expedia trading lower today despite reporting a strong quarter. the company warning of a -- of softening trends we've been talking about this in july and a more challenging macro economic environment ahead signaling some cracks in the consumer. joining us on set our own seema moody and the expedia ceo. seema, take it away. >> thank you. ariane, welcome to cnbc. your first quarter on cnbc.

>> thank you for having me. >> you did acknowledge the softness you are seeing in july and the market is trying to understand whether this is temporary, whether it expands to 2025, pause it does certainly come after significant number of quarters of resiliency we've seen in the travel industry. what are you seeing? >> i would start by saying we had a strong second quarter. we came in slightly ahead of our expectations with acceleration in our consumer business and also continued strength in our b to b segment and advertising. the last you few quarters we have seen softness in air ticket prices and in the price of car rental days. as we've headed into the third quarter we've started to see softness on hotel average daily rates. seeing consumers trading down a bit in the hotels, but look, we know people will want to spend on travel so we're keeping a close eye on is this temporary, what's happening, but we remain optimistic in the long term. >> on the trade downs how is that playing out? consumers are opting for cheaper

hotels, instead of the four to five-star hotels, they're trading down to three to four? >> we're just starting to see a little bit of that in the trends. and if you sort of step back from a macro level t internationally, where there had been countries seeing post-covid rebounds that slowed a bit and it's really in the u.s. where we're seeing that slight ra trade down on hotels. occupancy is good. people are still traveling. >> and your room grow of 10% that was higher than airbnb and bookings holdings in this quarter. what would you attribute the weakness to in july? consumers saying they don't have enough money? the borrowing rate? the jobs market that is cooling? . first our second quarter room night growth was 10%. brand expedia grew room nights by 20% which was excellent. sort of in the beginning of the

third quarter we've seen some softening but still a nice healthy growth. >> there have been two state legislations that investors and the travel have been watching. california which now is disclosing the fees that customers now have to add on to their bookings and new york there's a potential bill that will pass that experts say would dramatically increase the prices of hotel average daily rates. are these two risks for the industry? >> on california it's not about increasing rates at all. it's just about the way the rates are displayed so the consumer understand with up front what the all in price is. for us it's a matter of you have to shift your display and make sure that customers are understanding that. i would just say regardless of what regulations are across the board, we'll always be complying with them and we want to make sure that travelers understand what they're getting and then, you know, the market adapts. >> >> i have a question on marketing you mentioned it on the call in terms of interrogating your costs i think the words you used, and i'm curious where you are at this point seeing the best return in

terms of your marketing spend and where you aren't? >> we do spend a lot of money in marketing and, obviously, it's not surprising for me stepping in the ceo role that's an area i'm going to be focused on. we looked at both our working spend and our nonworking spend making sure that every dollar that we're using drives the most growth, and then with where we're spending, you know, we look by channel. we spend in performance channels, we spend in social, out of home, and wherever we're seeing the best returns is where we're going to lean into. >> anywhere you want to share? >> we're excited about social. interesting opportunities there not only in where we're spending ab but how we're spending. seeing green chutes with using creator led content versus the content we're creating ourselves. we're seeing nice results in that. >> i want to ask you about inflation. we get a big report this week on cpi and expecting a little softness on hotels.

i'm just wondering who has the best pricing power and where you see that trend going? hotels or what kind of travel? >> yeah. as i said on the air ticket prices, those have been coming down for a number of quarters. car rental days, which had gone way up during sort of the post-covid recovery, are also coming down. on hotels, it's early days. as i said, some of it we're seeing is a consumer trade down. we're not seeing as much like for like prices coming down. we'll keep a close eye on it. >> this is an election year. the travel industry, i know, expedia is a member of the u.s. travel association. what's your biggest ask regardless of whoever wins? >> our biggest ask is, you know, let's let people continue to come travel into the u.s. out of the u.s. i think one of the important things that happened during covid is a lot of governments around the world realized the importance of the travel and tourism sector to growth. it's 10% of gdp around the world, and it's an important sector. we need to make sure that we continue to create jobs and, you

know, allow people to keep on traveling all around. >> no travel dates. thank you. ariane gorin, pleasure to you here on set. >> thank you for having in. >> thank you for bringing her to us as well. a news update to bertha coombs. >> thanks, david. the u.s. is sending a guided missile submarine to the middle east and speeding up the arrival of aircraft carrier strike group, as israel braces for retaliatory attacks from iran, and its proxies after the assassination of senior members of hamas and hezbollah. the pentagon confirmed late sunday that defense secretary lloyd austin had ordered the dispatch of the "uss georgia" guided missile submarine to the region. hundreds of firefighters backed by more than 30 water tropg planes are battling a major forest fire raging out of control monday on the northern fringes of athens. hospitals and residential suburbs were evacuated as

officials are calling the fire exceptionally dangerous. and former youtube ceo susan wojcicki has died of cancer at the age of 56. her family and former colleagues announced the news on social media posts on friday night. wojcicki was a key partner in google's early years and one of the highest profile female executives in silicon valley. in a note sent to employees, google's ceo sin dar pichai described wojcicki as one of the most active and vibrant people i haveever met. "squawk on the street" will be right back. i can't believe you corporate types are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working.

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checking in on stocks. just an hour into trading and s&p has gone positive again. we started out the day strong. lost the momentum and now climbing again up 0.3%. the nasdaq, too, up 0.6%. we're gaining steam here throughout the session. energy and tech --

>> nvidia up over 5%. >> still 20% off the 52-week highs, earnings the 28th for the most important stock in the market. let's get to dom chu with more. >> one of those is nvidia for sure. we're going to start, david and sairp, with shares of eli lilly. this is a health care giant at this point now. the shares up fractionally right now, 0.1%. thanks in part to analysts at deutsche bank, upgraded that stock from a buy to a hold and raised the target price to 1025 a share. they're citing the giant's big beat on diabetes drug mounjaro and zepbound and also its high growth, low volatility appeal for certain investors, eli lilly is in focus. next up you got shares of take two interactive higher by 2% right now. one of the best performers in the s&p so far. the video game publisher behind the titles like grand theft auto and redemption and zynga mobile games is getting help from a buy to a hold.

the target price up to 179 from 154 citing better performance from that mobile gaming and more clarity around future game releases. watch take two. and then we'll cap it off with nvidia. it's higher by 5% right now. ubs, the most valuable computer chip company as a buy rated stock. the stock has gotten back everything it lost from last monday's selloff you can see from here and the bounce back happens after last week's news that jensen huang, the ceo, sold roughly $323 million of stock last month. nvidia has seen a 10% bounce in the last week, the best one-week performance of any of the so-called magnificent seven megacap stocks. david, keep an eye on nvidia, a drive for that nasdaq trade. back over to you guys. >> i'm glad we got to it. obviously, very important. thank you. big tech as dom also just indicated coming off a volatile week last week. the mag seven did underperform

and have been so far for this month. our next guest remains bullish saying ai demand is strong and forecasting a renaissance of growth for apple in particular. wedbush dan ives joins us now. ready to break it all down. dan, where do we find you on this fine morning here in new york, but perhaps where you are, it may be a bit later? >> yeah. i'm in tokyo right now, and look, as we've talked about on the program when it comes to ai and checks, it's not going to be sitting in an office building. what we're continuing to see gives us further confidence that this ai revolution from semis to software, is justice beginning. >> you're in tokyo. they're well acquainted with your channel checks, but i would be curious to know what that actually means, what you actually do, and then what you're seeing that's giving you the confidence in this raised

forecast in terms of how many iphone 16 shipments there will be. >> that's really across asia in terms of suppliers, how we've been always been able to get a beat in terms of our view of the supply chain for iphone. this started off units coming out, 80 to 84 million for iphone 16. now we're at -- we have about 90 million and potentially higher. that's important because that's essentially what apple is telling suppliers in terms of what the demand outlook liooks like on iphone 16. we believe this is an ai driven super cycle for apple. >> china remains important, in the region, no the in that country right now, but does that extend to your so-called channel checks? do you get a sense for demand there given how important that would be overall for the iphone 16? >> yeah.

that's a big part of what we're doing and we'll be back in a few weeks in asia. i think china is going to be key in terms of from a growth perspective. we believe there's 100 million iphones in a window upgrade opportunity and those are going to be 80, 85% pro and pro max. what's important there is that's just going it further drive asps. in our. we can now be looking at over 240 million units for apple going 2025, and if that happens, despite all the white knuckle over the last week or two, we're looking at a $4 trillion cap in the year. >> the problem, dan, is that what we learned from earnings is that these stocks and these companies are still reliant on, you know, advertising or macro factors and amazon was soft on e-commerce guide and google, youtube, was soft, and, so i just wonder if there are dangers with the excitement and exuberance with ai which is

clearly the predominant trend with current revenue growth? >> look, no doubt. i mean there is some softness around the edges we saw with amazon and youtube from an ad perspective. then you look at the fourth industrial revolution getting built out. look at microsoft in terms of the azure guidance. look what we saw from cloud from google, from amazon, from microsoft. look what we saw from palantir from a use case perspective and servicenow starting to see it. this is a start of a massive -- we have a trillion dollars of capex over the coming years, and i'm not saying that it's necessarily going to be -- there's going to be some speed bumps on the way in tech, but i believe this tech bull market is well under way despite, obviously, some of the macro worries we've seen over the last week and that's how we're handling investors through it. >> all right. continue those checks, but make sure to get sleep. it's getting late over there.

>> thank you. >> the yen at 148, by is stronger but still pretty waek. >> doing some shopping if you will. >> because they can't adjust the prices fast enough for the designer goodsp tourists are flooding. the weakest was 161. it's down to 148. if you went in the past few years, you're used to more like 100 or less than that. still ahead, wells fargo's head of equity strategy with his volatility playbook arguing it's time to buy stocks but not the market. we'll find out what that means next. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe

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the markets are starting off a new trading week a little on the wobbly side. for those that want back into the big tech trade we'll show ragi to ak use some options stteesste a claim and buy some insurance at the same time. tune in to our market navigator segment today on "power lunch" 2:00 p.m. eastern time.

welcome back to "squawk on the street." stocks are accelerating here throughout the morning up 0.3% on the s&p. nasdaq up 0.7% as nvidia rebounds to the tune of about 5% or so ahead of a make or break week when it comes to the consumer and inflation. we'll get ppi, wholesale inflation tomorrow and then cpi on wednesday on the consumer. after all the volatility last week, our next guest says to buy stocks but not the stock market noting the pull back in communication services as an attractive entry point. wells fargo securities head of equity strategy chris harvey joins us now. what specific advice are you giving your clients as we begin the week? >> what the specific advice is be concerned but don't be fearful. typically when you enter a fed easing cycle it's more of a risk off but there is opportunity there. where it is, take it. we're seeing good opportunity in the communication space. you did see a correction. you have good valuations, good

fundamentals. positive mow mentum you can mak money in those names. >> why communication in particular? there were a lot of sectors beat up? >> it's a sector we've been riding for probable lay year and a half, two years. a sector we liked. if you look at the underlying fundamentals the fundamentals have continued to improve, but more importantly, it has good valuation, right. you're not paying through the nose for a lot of the valuations, and that's something we like. more of a good what you would call risk-reward. >>. >> what about momentum? bend but didn't break? how important does that continue to be in terms of this marketplace? >> i think it's important. one of the things we talk about this feels like 1998, right, and similar situation, where you had positive momentum, big caps outperforming small caps, fed started to cut rates and did have a period of turmoil but after that you did see growth, you did see momentum, really get on its horse and start to move. we do think it's very important. we do think that it's not time to go to that contrarian basket,

to go to small caps, to be, you know, very aggressive on that high risk trade. i think it's really about positive momentum, good risk-reward and things that are working. >> you weren't a believer in the rotation we were talking about a few weeks back that did whip saw people who owned the mega caps? >> i think what we saw was an exceptionally oversold type situation, working itself out. if we look at the underlying fundamentals they're not strong enough at this point in time. a lot of people don't trust the e. there's a big discount for small caps and we're seeing that e go down. until we do it's a levered type situation and unless you want to put on a lot of risk it's not the place place to be. >> what about positioning? i've read bullish notes saying a lot of work was done on repositioning heading into september that might be helpful? >> i think that's right. this is now much more balanced market. i think it's a much healthier market. one of the things that was common with 1998 you did have a ton of leverage and you worked out a lot of those over levered

situations. you did see what we're saying one of the reasons you want to go back to communication and one of the reasons back to momentum it is on sale, right. before it was stretch where a lot of these names were stretched. now it's on sale and get them at better valuations. >> i've been watching the vix. we only watch the vix when it sky rockets. went to 67 in early august. we're now below 20. >> yeah. >> what does that tell you? >> we look at the vix. i'm not sure what happened on monday, but the more important issue is, is liquidity, is credit getting to where it needs to go? credit markets are functioning normally, right. ig credit or investment grade credit more paper issued than expected last week. that's a healthy sign, not something you saw back in 1998. if we see the credit market start to retract or start to dry up, then it's a problem. right now, still pretty healthy. >> all right. thanks for going through some of the metrics that you're talking about. >> thank you. >> chris harvey from wells fargo

securities. check out shares of keycorp, biggest gainer right now on the s&p 500 after news that the bank of nova scotia acquiring a 15% stake in the company worth around $2.8 billion. the ceo will join us next hour on "money movers" on what's an interesting deal and wondering how that partnership is going to shake out. i'm looking at some of the early analyst notes kind of a surprise they considered it a self-help story and now this is interesting. >> it is. it says significant allocation in cash. doing it at a premium. they're paying $17.17. they're doing it in two stages 4.9 and 14.9. but that is $2.8 billion in new capital that's going to be available as well and they're going to partner potentially on certain growth aspects. we'll have an opportunity to talk to the ceo and find out exactly what was behind the decision to do this. >> wonder if a bigger deal is ahead as well. we've been waiting for more regional tie ups. >> yeah. >> m&a. >> there's going to be one

clearly conceivably, but they are below the 15%. i don't know if they have it at 15 but i did note that as well. >> 18% premium the number. >> over the 20-day weighted average of where the stock was. also wanted to take a look at starbucks. up a little less than 4%. you've been following it given it sort of falls into your consumer names. >> weaker than other consumer names. >> i've been following it because elliott is the activist and reports starboard is there. unclear if anything is going to develop for that one, but elliott we have been focused on, of course, whether or not there would be an opportunity for them to get at least one director. i've been hearing the guy who runs activism at elliott jesse cohn. see if we get the settlement of some kind in the near term or not. but that seems where i've been focused at least. i no these headlines on starboard may have misdirected people a bit. not much there to say at this

point. >> starboard is not confirming or anything saying. it's on brand, though, if you look at some of what starboard has done, especially with consumer names like a darden restaurants. >> much more in some ways than elliott. >> the question is, what is the issue here? right? with starbucks. they have weaker traffic and sales than other consumer names, even in a tough inflationary environment. they have, you know, a ceo in there who has made a deal with the unions, but it feels like they need to figure something out to get more traffic later in the day, not just in the morning. >> is that it? >> that's one of the issues. >> service, operational issues. >> and new customers, getting new customers in beyond just the loyalists for starbucks. but the stock is getting a boost maybe on all of this activist activity. >> the expectation of some kind of a settlement. again, we'll see whether, in fact, we get that. to your point, still stock down 22%, almost 23% for the last 12 months. quick programming note for

me. tomorrow we have an interview with blackstone's president and coo, jonathan gray, in the 9:00 hour. we'll get his reaction to what's going on in the market, the private credit. there's so many things you can talk to john about. >> real estate, that would be good. >> the election. and he's such a pleasant fellow. >> you don't say that about a eoe.of ppl >> because it's not true of a lot of people but it is, in fact, true of john. "squawk on the street" is back in two.

big changes when it comes to the wealthiest people in china, at least over the weekend. robert frank is sheehere with t story. robert? >> good to see you. collin wang is just 44 years old and he is now china's richest person, worth $48.6 billion. now, like many of chinese new tech rich, he had a lot of exposure overseas. he got his masters in computer science at the university of wisconsin. he interned at microsoft in redmond and he got his first job at google helping them launch in china. he created pinduoduo in 2015 and saw his wealth skyrocket to $71

billion at that time. now, china's lockdowns and the government crackdown on the private sector around that time slashed his wealth by 87%. he stepped down as ceo, left his chairman saying, he wanted to focus on researching food and life sciences. then around the same time, temu, pdd's business outside of china, started taking off, especially in the u.s. pdd's market cap is now neck and neck with alibaba, right around $195 billion. wang no longer has a role at the company. he owns about a quarter of the company's shares, so that's where the wealth is coming from. and, by the way, jack ma, who used to china's richest, now in fifth place with around $32 billion. so, david, guys, it's interesting that once you get to the top of the china rich list, you kind of disappear. that's probably by design. >> yeah.

bytedance, that has to be at the top as well, doesn't it? >> it's right up there. you just haven't seen many of these executives, even at bytedance, which silgts more of a public role given the kr controversy, given the china view toward the private sector and especially tech, they don't want any of these ceos or founders to become too powerful. they reach a level of wealth and they either step down and/or, you know, jack ma now mostly living in japan. >> and adding to the potential worry will on temu, i don't know if you followed the protests they've been having in recent weeks, some merchants and suppliers have been heavily protesting temu for fines, for not getting paid when merchandise is returned. i just wonder how -- in china, i wonder when something like this happens, you know, how they handle it politically.

>> absolutely. there's a lot of pressure within china right now to crack down on the workplace practices, sara, as you mentioned. just how do they make things so cheaply to sell them at the prices they do here in the u.s. so, i'm sure this is very unwanted attention for wang and the company right now, given those controversies, even in china. >> yeah. not the same as being the richest in the u.s., which is sort of like more of a sense of pride. i remember in france, too. they don't like being the richest. they don't like being in that list. in the u.s. it's more celebrated. >> yes, we celebrate here. the founder of bytedance, i was nehing to find out his actual owrsp of that private company. as for the public markets, keep it right here because we'll continue to follow those movements. finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars.

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good monday morning and welcome to "money movers." i'm sara eisen with david faber live from post 9 of the new york stock exchange. keycorp the top gainer on the s&p 500 on a new investment from the bank of nova scotia.