headed? >> yeah. >> i'm going to l.a. with a big game plan board room -- >> again. >> -- cnbc extravaganza, it's going to be something we have everybody from kevin durant. evan spiegel, it's going to be a big one. then we have the big debate tomorrow night and i'll see you wednesday morning. >> wednesday morning. >> yes, sir. bright and early. >> not enough sleep. make sure you join us tomorrow, "squawk on the street" is next. ♪ good morning, good monday morning as well. welcome to "squawk on the street" i'm david faber with jim c cramer. let's give you a look at the futures, you heard joe and andrew talking about the markets of course. looked like we're going to be up jim -- i was out last week but

it wasn't the best week. >> it was a terrible week. >> at least if you were long the market. >> exactly. and friday was really bad. i got to tell you once again, david, it's my alleged favorite nvidia that's dragging things down. >> our road map starts with the stocks following that rough start to september. plus it's glow time for apple. the company is hosting the iphone event today we'll get you ready for that. also day 1 for the new ceo at starbucks, in case you haven't heard, his name is brian nickel, used to run chipotle and is aiming to turn things around for a company that seemingly has lost its way a bit. stocks still down. >> a bit is a questionable term because i think it would be a lot. >> let's start with the markets. you heard jim referring to of course to the performance of nvidia last week.

not alone in the sense that many of the chip related names were getting hit once again. i know i wasn't hear for it but we're hearing because i read, still involved in hearing about what's going on. the questions as well about the long term return on invested capital and whether, in fact, you're going to get that return that is justified by the hundreds of billions being invested. >> i think you're onto something huge which is semiconductors is the proxy for whether a.i. is anything or not. even though there's lenplenty t shouldn't be the proxy. the consumer goods, they're parabolic. we know there's history on their side that you're supposed to buy them in the economic cycle. looking at a campbell's soup i look and say, are these the new growth strzocks really? >> hard to imagine they're making the case they're truly

growth stocks. >> and i would rather look at whether dell is sustainable for more than one day added to the s&p. because dell was the weakness stocks, super micro, some of the -- qualcomm. these are not companies that there's anything wrong at so i thought it was interesting. >> when it comes to the overall market, jim, and valuations at this point it's hard to make the argument that things are cheap. headed into the s&p, it's at 22 times. the equal equal weighted s&p 50 times. and the magnificent seven are 29 times earnings. when you hear those multiples that i just recounted, what do you think? >> i did a piece this weekend for club members and started with trying to figure out where the s&p 500 was.

they said, oh my god, maga, it comes out, it doesn't matter. still over 23 times earnings. david you're right. markets are historically expensive. take out the value or value trap of the oils, and you get a market where you have things like american electric power being growth stocks. everyone -- pacific gas and electric, they've been trans transformed. >> it's part of the same trade. >> fwhaz're not. >> that we talk about, the power consumption, need for it, the growth of data centers to house the nvidia chips and everything else that goes in a data center to power this generative a.i. economy that we're all waiting for, so to speak. so you end up with power producers becoming growth stocks because the idea they're under so much are pressure to produce more. >> and as tesla's energy group

part of the great growth of tesla. interesting this morning between eaton and tesla making the home charging better. i do think the data center story has become a major growth story. i mentioned ap, southern dy minion and i'm not buying you get a 5% pickup in energy and suddenly you buy these. i think it's more than an actual number raise. >> they're regulated utilities aren't they? >> exactly. they don't make money that way. they make money depending upon the public utility commission. so the idea of buying those, what everyone is doing is buying the augmented data center what makes them. and i wanted to ask you about blackstone's acquisition making them the largest data center play. >> they were already and they just continued to be huge believers. >> you know last week they turned the data center too.

a lot was michael misinterpreted, even by me about selling nvidia on this, it's the hyper scalers that may be too aaggressive. >> you're referring to strategy of j.p. morgan. >> it was devastating in some ways because it questioned -- it said the emperor had few clothes. >> it was questioning the thesis i brought up at the top of the show. >> yeah. >> will we get a -- >> yeah. listen, as our viewers know we come back to the same themes time and again, as we need to because these are the important themes in the marketplace. generative a.i. obviously what the applications will be but the idea it's been around for some time. since the guy from sequoia really wrote that note quite awhile ago saying this is number i come up with, this is what you need to see in terms of actually having is a return that made sense with this number. >> look, this morning i meet with jeff marley, the great ceo.

i say that because it's his 73rd, birthday, medtronics. he said that they have an a.i. version and a regular version and the regular version is missing 50%, 5-0, of the cancerous pollups that are discovered by their a.i. version in medtronics. we get these one off examples. the other week saw a science study talking about wait a second maybe we're mapping out the ways that cancer could be caused. maybe we don't have enough uses. jensen huang if he were here we had this since sequoia did that note. >> he wouldn't say that. i know we both talk to each other occasionally off the set. >> we do. >> who doesn't say this is going

to change the world. they say the same thing. i haven't met a ceo. >> they do -- >> who the beneficiaries are, so many come back to what you just discussed with colon ossewpies and medtronic and how you'll be able to shrink the time for trials for drugs. but until we can see is the consumer applications investors are in a wait and see mode now. >> worse. no one believes in the consumer a.i. pc as much as we thought. and the consumer doesn't seem to get the value proposition of a.i. why not? i can put in chat gpt. i don't need -- >> right. you don't need the pc to do it yourself. >> no, i have a.i. >> that gets us to apple for obvious reasons and the consumer and use of a.i. because the event titled "it's glowtime" is set to get under way in a few

hours from now and the company is expected to unveil a new generation of iphone with apple intelligence a.i. features. so i come back to you and say will this be years from now in the turning point -- >> no. i don't think this is the iteration that's going to have the great a.i. the stock was up 40 cents mid-morning and now it's doane down. i think that's indicative of people saying wait a second, these launches have historically not produced any results. but i have to tell you, glow fest. i don't think glow fest is what people are buzzing about. >> no? >> versus the developers conference where they buzzed. >> they did buzz and the stock buzzed a lot higher after that back in june. >> super buzz. >> what are your thoughts when it comes to the latest iteration of the iphone and whether it is going to power a sales growth with what some estimate could be as much as 5% for this company above last year? >> i don't want to be sophomoric

because i think people might say tell me something i don't know. but it comes down to verizon, at&t, t mobile and giving the phone away. now people who follow interest rates, that's false. there's just -- there's no giveaway here. but i would point out that mike see bert sat there, the ceo. >> yeah. >> if they're going to do it. >> we'll do it too. >> so it did feel like an arms race which is going to benefit apple. the most recent upgrade, you haven't had it three or four years now. >> this is a benefit to them. but my kids who need a phone, you get the one from last year. it'll still take you up three or four knowledges. >> my younger has a five. for who? for what? that's the eagle first game many years ago. but it did remind me there's football on the weekends. you go tonight. >> we go tonight.

>> giants went yesterday -- no, they had a bye. >> they wish they had a bye. >> they played. >> yes. >> medtronic is from minnesota i think every one of them went to the great bell ringing. >> that was that the big six? >> you didn't go to brazil did you? >> no, i wanted to go but i wasn't asked by a particular network that covered it. i would have gone down there. my grandfather has three brothers in brazil. >> you have family down there. >> in that city. >> all right. >> via reunion. >> to come back to the topic at hand -- >> yes. >> -- before we take a quick break. you're not expecting much -- >> no. i'll tell you why. >> in terms of the latest performance in stock and/or you point out the subtysidies very important. >> yes. i did a piece this weekend talking about the magnificent 7

and i did cite that apple has been holding up better which is not good news because anybody whose head picks up out of the trench the bears have shot and the bulls are on the run from. >> to put it in perspective what are we 4% off the highs? >> yeah. >> it's not exactly. >> you weren't here it went down. >> that's true. i want happens a lot. what do you want to talk about disney? with direct tv? >> the article -- >> i don't know if i'm ready to talk about that. >> no? >> no. >> i thought it was quizzical. >> i was on a plane most of yesterday. >> it was a long piece, you would have had to go from cleveland to new york. >> i was exhausted. so i won't say that i didn't read it but i'll schahare that. >> the s&p -- >> yes, pal tier and dell

joining the s&p. we'll discuss the challenges -- looking at futures as we get you ready for an open that is less than 1 mi8 minutes from now. a lot more "squawk on the street" straight ahead. this one is for you. this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes! -how? -a.i.

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is that love island? new era for starbucks it's brian nickel's first day as the ceo. of course another turn around plan he's going to implement. shares have been up dramatically since that dramatic announcement was made almost a month ago that mr. nickels was leaving chipotle and coming to starbucks. this is the fourth ceo they've had in not a long period of time. you have to wonder whether that

kind of tumult in the senior ranks is going to hurt them. >> you have a founder and then a guy who's fired. >> you had kevin johnson, then howard, then lutzman. >> there's a question of what happened with kg and the departure. i would say that lutzman is more of an operator. i had a fella named jonathan -- >> jonathan? >> sweet greek ceo. >> it's a great growth stock. >> sweet green has been a great performer. >> yes. jonathan would tell you, brian niccols is amazing at throughput. they have like 28 second, sweet green is low for the casual, it's a couple of minutes. but brian niccol if he can solve

the throughput order at starbucks. i hate the people who cut in front of me right now, turns out they're mobile. i don't know, it i think they're cheaters. i do think that -- in brian niccol i trust. >> it's curious given the stock's move at the time of the announcement. >> 20 points you mean. >> yes. almost a 20% move. talking about 27 billion in total value, 20 billion accredited to starbucks and 7 from chipotle is it now prove me? does it sit there for a while. >> i think he's laying out a strategy that says here's what we're going to do or do what panera did, we're handling mobile badly so starbucks 2.0, goes south to do it and has the

charlotte lab i think brian niccol has to have a starbucks lab. >> there was a country they were putting a starbucks up every -- i exaggerate -- nine. >> hours. >> yes. >> forget it it's china. >> exactly. what to you do with china where the economy is slowing, where inflation is not showing its head and they want it to because they're worried about deflation. >> they have a value proposition but we have a value in dunkin' donuts, there's room for both. >> there is but how important was china to the growth for starbucks and how important would it be? >> everything was a disaster for china. the answer is it's a black hole. we have no idea because we were assured that china was going well. now lutzman, he was very confident and the confidence was

po misplaced. >> right. what about any company that has a significant percentage of sales coming from china. >> other than lulu. >> we know the names, lulu, nike, apple, tesla -- >> right. now apple is interesting because they haven't named an a.i. -- read that this morning, but we don't know who's going to be their a.i. connection in china or whether there will be one. >> or what they can do that. >> the economists by this weekend basically said all the numbers are made up out of china because we have the deflation number that shows that there's terrible deflation. deflation means people don't buy anything because it's going to come down. >> so you wait. it continually diminishes demand overall. >> and that's probably one of the hardest cycles in the world -- >> japan 30 years. >> exactly. by the way, what's the one thing going up? food. by the way, food is the source

of almost all rebellions. >> they've had some droughts and food prices are up in china and nothing else is. >> exactly right. an unholy combination because we have a lot of people who say no matter who runs and wins for president, china is a loser. china is about as universally hated as the nippon steel deal. >> we'll get to that. >> we had to cover the waterfront. >> your man is feeling good. we have a mad dash coming at, so jim has to get ready for th. we appear on track to have a strong open after a rough week if you were long stocks last week. at average risk, not high risk. false positive and negative results may occur. ask your provider for cologuard. ♪ i did it my way ♪

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...to empty nest... ...to free birds. vanguard personal advisor can help you prepare for every chapter. we got this. that's the value of ownership. there you have a look at at least the names that appear to be ready to gain in the very early going here when we get started with trading less than six minutes from now. arm holdings one of those names. >> nice change of pace when it comes to semis. >> after a rough wk steela week as we said. we have more for you and don't

forget catch us any time anywhere following the "squawk on the street" opening bell podcast.

all right. let's get to a mad dash with jim and then we'll have an opening bell for you. >> okay, david. it's 140 pages. >> yes. >> it's the government's case against google, starts today, which is, of course, alphabet. >> people can be forgiven if they get lost in how many different lawsuits -- >> yeah. >> we have the doj having to do with the -- that one case is concluded but they'll figure out w45 to do. >> google lost that. >> this is the one you've been focused on for a long time about advertising. >> yes. the reason why this is important it's directly involved to earnings per share, this is 13 billion advertisements a day on the web, every day, and i'm going to quote from the -- >> 13 billion a day. >> yeah. i'm going to quote fraudom the document. google has corrupted the legitimate competition by

engaging in systemic campaign to seize gotools ers, it is damning and i got to tell you before trade desk i would have said meaningful now i don't know if it's germane. >> why? >> because people want to advertise on netflix, on peacock, they want to advertise where the viewers are. and this is much more about print and much more -- a lot of youtube. but if you want to be in a clcl closed system, sure knock yourself out. this is not the only system. >> the government's case -- >> the government lost that. their own trade desk has overrun this. it's become such a juggernaut i have to question whether google can be a monopoly. >> the case is beginning today and we will see, right, jim?

>> google keeps 30 cents of every transaction, if this can be procven, that's a nightmare for advertisers. but they know it, they accept it because it's where the eyeballs are. it's like the app store. >> but there's no orplace to to it. >> exactly. >> it's not the fall. it's like the apple phone, feeling good, not your fault. >> i don't think that matters. i'm not sure how intent matters. there it is. the opening bell. for this monday morning here at the big board, medtronics celebrating its 75th anniversary. geoff martha is on with jim tonight. >> when was the market down like it was last week? it was in march of 2023 when these banks were on the red hot griddle. so happy anniversary.

>> yes. >> you survived. happy anniversary. >> where do you want to start this morning? what name, if any? should we just keep an eye odell and palantir both of which were added to the s&p 500? >> yes. i want to be more ethereal. >> i like when you're ethereal. >> thank you. we got an updated nucore today, j.p. morgan, where are we in the cycle? can you buy the cyclicals we're about to cut or do you have to wait? i think that j.p. morgan wants to get ahead of the rate cuts which is historically the right thing to do but there is an update about how things are going. i don't think it'll be that goofd, david because the price of steal keeps coming down in this country because of steel from mexico, china, and yet they're more concerned about

nippon than imported mexican steel, which is really chinese? >> is it? how are they able to do that? if you know it, doesn't everyone else know it? >> yeah. it's a big open secret because we kowtow to china all the time. we think china is still the greatest market. hello, india, get your act together and you can take over the world. young versus old. the replacement of the demographic of china. you referenced japan already. you get a stagnant growth of population, you get -- >> they're in a demographic decline. look at the numbers of south korea and any other country. our counted benefits from immigration. >> i don't want to talk about it. >> you don't want to talk about immigration? ? . >> no, that's the third rail for me. i don't want to talk about that.

>> immigration keeps wages down. >> what does happen when you put tariffs on goods and you stop immigration and force migrants to leave in terms of wages? isn't that going to be inflationary? >> of course. of course. >> is it a one time, though? >> i don't know. when you see tariffs like that, obviously you think about 1929 to '32 and realize how wrong they are. or you see that maybe, maybe trump saw the show, the show is pretty good, maybe saw it twice and it's very pro tariff, the show -- >> our show? >> the show, whatever it is. it's very pro tariffs. >> oh, the show. >> the broadway show. >> it's very pro tariff. so maybe i'm saying trump may have seen the show. >> that show? i thought you were talking about our show. >> no, david.

i'm talking about ma'ahamill. >> i read the book and seen the show. incredible musical. >> i'm going to reference bro broadway. give my regards to that and move on. >> i'll move on, happily. where do you want to move? >> do you want to two back to the idea we have to worry about a.i. since everybody else is. the reason i say it, david, is because is there a level where people feel confident in not seeing nvidia, did we reach it today? nvidia was down big last week. people are saying the chart is okay. but nvidia is still the -- the -- the it's the somme. >> that's world war i? >> i switch wars all the time. >> i know you do. nvidia is up 3.57%. >> can it hold it? >> of course that's the question. >> if you watch the volume,

david, it trades like game stop did, a lot of 0-30 options. >> i know. >> and then grandpa said -- all i can say is i wish i was a gra grandpa. >> they go between fan dual and making the bet on the jam tonight, the jets in san francisco and zero day on informed. no difference to anybody in anyway. >> it's a knockout. >> i don't know what it says on for me because i sit next to you. >> i play daily fantasy every day here. and right now i did not start nvidia i started richardson, saquon barkley and cooper kupp, can you believe how great i am? i didn't do that. but this is the reality, nvidia cannot finish up. it's the long knives are out for nvidia and by the way, there's a -- a sense that it doesn't matter whether you buy any of the tech. amazon. >> one day the demand will -- will -- >> it should be now.

>> -- diminished for their chips. >> but the spokes people. >> at some point the spending will slow. >> we had a great number from broad come. people hated it. and hawk watches the show, he's an eagle fan, watches the show and all i can say is holy cow, did people want to sell that? that was a super micro like decline. >> again we need to point out the fact that the stock of broad com is up 50% the last 12 months. it was in the $800 billion -- >> it was and the people -- >> -- cap for a while. >> berkshire doesn't count the 800, 900. no. when you go to draft kings they give you the 200 billion. you get points -- >> right. >> -- you watch draft kings for where stocks are going.

killer. >> no idea what you're talking about. >> people are playing draft king i said you get berkshire hathaway in 200. >> i see. took 36 minutes before you said something i didn't understand. it's a record. >> what was the record? >> how long you went before you said something i had no idea what you were talking about. >> that's okay. >> now you explained it so i kind of understand it. >> we do the number of trades that howie roseman does. >> the general manager of the eagles. >> i got it. are you going to be like this -- now that football season has started are you going to be like this every day? >> this is the last day i'll do this unless you ask me directly. >> you talk about football -- >> no, it's done! football is zone! i'm looking at my executive producer and swearing football is zdone! >> okay. an interesting dispute between disney and directv. >> people still have that thing

on the roof -- >>it's like 11 million people that have directv. >> it's terrible for the environment. >> it's interesting this dispute, really in large part because it brings in larger issues. we never talked about the potential demise of the sports joint venture venue, remember that one, until a judge in new york issued a preliminary injunction going along with f fubo, no way. >> fubo got the $2 stock -- >> but in the decision the judge discussed the long held practice of bundling. where a content company would say to the distributor, the cable company you want this network you have to take those networks even though nobody wants them or watches them, because we have them and you got to buy them. and in this dispute, disney -- i should say directv has referenced the decision by that

judge. in this part of it, there's no power, nothing enforceable. but she did point out basically saying in the context of the venue joint venture, disney did insist on bundling and penetration requirements and the district court judge found they were unlawful and bad for consumers. saying they want to carry a fat bundle. while the less desirable programming, offering skinnier bundles of what consumers want. they may want to bring one in the future concerning disney's conduct. they have a five year license deal. so if you are a customer not getting espn, you didn't get to watch the open. the u.s. open. >> you probably don't know if america won or not. >> america lost. >> i do think -- >> there were some interesting

people in attendance. did you see who was in the front row at the u.s. open? >> elon musk and zazz. >> yes. and bobby codig. >> i don't know what look he's working there with backwards hat and beard. there's musk. >> musk was also at the same time doing a deal between a.i. and tesla. >> no. denied that. >> denied a meeting? >> denied that. >> that's interesting. that article said some journalist is a liar, hack and fool. >> it comes out that musk denies something that's reported but never clear what's actually true. tesla shares are up 3.7%. >> how can it not be? it's great, they got a check from a.i. or better got the a.i. and didn't have to pay -- >> i remember talking to the company's chairman about it.

there is that question how do you apportion resources from one to the other when he controls obviously and has raised a lot of money for x-a.i. and tesla using generative a.i. in terms of self-driving and apparently having great success potentially. >> the most of maybe anybody a competitive car in china with a price differential i think the neo is frankly the cheapest car on earth but it drives like a charm. my wife took a neo out. >> did she really? >> she loved it. >> where was she? >> fitaly, europe. it gets like 17,000 miles charge or something ridiculous. >> you wonder with china and the evs, the fact that they control basically battery. >> right. >> industrial complex. whether and how they're going to be able to dominate so many markets other than the u.s.

i have an interesting question for you. >> sure. >> would we be better off letting it be a free-for-all here, and allowing u.s. consumers to buy automobiles for $13,000? >> the only thing that people would be happy for in detroit would be the lions being good. one more reference. i have to tell you if you brought those cars in, do you remember phil lebeau's reporting on south america. >> i do. >> took one third of the market instantly, they would take one third of the market because right here -- david they would be the price of your cable bill. >> but they're subsidizing that entire industry, should we not benefit from the subsidies. i'm not saying in any way i advocate that you have two presidential candidates who are going to speak strongly against that i'm sure. >> that would make america bad again? what would that do? >> it would benefit consumers in the short term. same thing about solar panels that they dominate. >> just wipe out everything we made. we already did that.

we wiped out every factory town there is. >> you're right. >> vice president candidate. >> it's a good -- >> have you noticed when you put people on from the white house or the republican party whatever, they no longer attempt to be what their job is? >> i don't know who you're referring to. >> you can come on, you have to identify yourself as being no longer really affiliated with the administration because you're going to talk about candidacy. so we have to be more mindful when they have these people on. they talk a good game that has nothing to do with what we're asking them. >> that's always the case with politicians you know that. >> i want to point out that people who are coming on, i'm trying to do this for the country. i'm trying to do this for the candidate. >> i want to circle back if i can, the dispute between disney and directv and another distribution deal. interesting they're bringing in that deal.

venue itself, given the delay they can't get this up and running until football season is mostly over. warner brothers only has one more year of the nba. remember that case is also going to be going on. and then you have disney launching espn. its own streaming product next summer. i wonder whether venue will ever see the light of day? >> i don't know. we are at this period netflix had a bad quarternot that long ago and everyone lowered numbers and since then they've been coming on. i'm not seeing these different other options, streaming coming along as being -- as significant. maybe you can tell me which ones that haven't peaked already. >> i listen, come back to the same thing we've talked about for need. the need for consolidation and scale. >> eunici don't know if that ca happen under a harris administration. >> very much unclear. let's come back to

regulatory we had one trial starting today, that's capri, accessible luxury. >> yes. >> where there were lot of questions about whether and why they brought an action, that being the regulators. another trial that continues that seems to be going well for the government but not a surprise perhaps for us, which is albertsons and krogers. or krogers desire to buy -- >> i need you to say something that the government may not be aware of, david. the company buying the overlapped stores are better capitalized than the two mergers. >> you're talking about the decision to divest many of the stores to cns. so far with what we've seen, relying on the analysis of others listening, the government has made astrong case or c&s failed to make a good case as to why it is in a good credible position to be a good

competitor. >> this was the remorse that came from the deal where safeway was purchased, they sold to h haggen, haggen immediately went bankrupt. >> if you have a favorable judge for the government and failing to make the case they're a credible buyer that's not looking good for you. >> it's not and strangely enough i would be a buyer of kroger here, they're doing so well on an operating basis, despite the fact that costco is doing well. you're talking about costco, walmart and amazon that do grocery. but obviously a very good player in kroger. >> yes. >> changing gears a bit here, some very happy news for somebody that you and i both know. >> who is that? >> my producer, carrie caufield landry. congratulations, 8 pounds 11

ounces welcome to the world lucy, we're very happy for both kerry and pat. >> she'll work for both of us. >> yes. if she's half a good a mother as producer that kid is going to have a great life. she is an amazing producer. i will miss her during this period of time when she'll be taking care of her baby. >> they're actually giving up time to parents. >> yes. that's a big issue as well. how you care for and support a child. not just in the early going here -- >> no. >> in terms of family leave but really throughout is very important issue. not nearly as much as in europe. >> do they have to go to work? >> all right. your health care, your college, yeah, you don't work that hard, your economy is not that good but life is life. eventually we're all going to you know what. >> i have to tell you the wine

consumption in europe is almost as if we haven't linked it to any problems like we have in this country. >> not great for you. >> thank you. >> coming off a rough week, man. i tell you, a lot of wine. >> so none tonight? >> one glass. one nice glass. >> you're buying. >> i am not buying! >> all right. i'll buy. >> good. >> you pick the place. >> with my lawyer who you're familiar with, a big firm that does m&a work. came in, nice bottle of champagne boom i get stuck with the bill. >> you do get stuck with the billion. i remember we went out with the billionaire and you had to pay a couple of times. >> i get hosed by billionaires. >> check out the bond report. how frtreasuries are fairing. we haven't talked about it in 48 minutes but we will now. concerns overall about the

economy as you might imagine, getting closer to september 18th, 25 or 50, what do you think? >> i still say 25 because he's a considered man, jay powell. doesn't want to panic us with a 50. >> all right. we'll be right back. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

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i'm watching nvidia. same thing. we started -- there is an overwhelming belief you have to get out. anything ai. >> it's really incredible. >> that would be bad for the market overall or no? >> i think you, captain obvious, nailed that one like you can't believe. know what i say. >> i have a keen sense for the obvious. >> it's go time. that's all you need to know. >> what does that mean? >> i don't know. wasn't that when you went in to test a helicopter, wasn't that go time. >> bring me back to that. i'm glad i'm on water -- >> we have to go out to a -- >> helicopter ride. >> 90 miles off coast. >> submerging helicopter thing. >> that was a life memory. training for it and the trip. >> many of your pieces are life changing. >> what do you got on the show, speaking of life changing? >> i have medtronic on tonight, medtronic a company very pro-ai.

i put it to geoff martha does anyone care, and he says they should. the more important thing with the stock it sells at 16 times next year's earnings and like a company that has done well here, taking the share from the mag seven. that's now a shared donor as they call it. >> yeah. >> shared donor. sounds ominous. have a good time finishing the show. >> see you after the show. >> busy piece in the interim. >> the 12,000 word piece. i'll also keep an eye on the markets as you've seen are off to a positive start after last week's down week significantly down. ke ihe. ept re hi, my name is damian clark. and if you have both medicare and medicaid, i have some

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welcome back to "squawk on the street." rick santelli here live with the breaking news of the morning. wholesale inventories a july final read we will replace up

0.3 with up 0.2. it really doesn't change much. this is a q3 number, and we witness to pay very close attention as september is the last month of q3 and one month and a half we will have our first numbers measuring the q3 activity and right now, we're seeing trade sales surging. sales up 1.1%. now this is a fresh number. we don't get trade sales in a mid-month. 1.1 is actually the second best read of 2024. we were at 2.0. 2% in february of this year. now interest rates short end had a huge drop last week, and we see that the 2s, 10s spread is positive and interest rates are all up just a bit. but the short dated two-year, three-year, five-year are at low levels based on history and we'll continue to monitor these. later in the week, cpi and ppi

some of the most important data points before the september meeting. "squawk on the street," of course, will continue and kick it back to you, sara. >> okay. we'll take it, rick santelli. thank you very much. good monday morning, everyone. welcome to another hour of "squawk on the street." i'm sara eisen with david faber, live from post nine as always of the new york stock exchange. carl has the morning off. taking a look at stocks a welcome rebound from the bulls. the s&p up 1% right now. the nasdaq up 1.2% after last week's slide where the s&p had its worst week since silicon valley bank collapsed in march 2023. what's working today, pretty much every sector except for utilities is up. consumer discretionary is leading, industrials, communication services all higher. tesla a big part of that story up 4%. a rebound across technology after it got hammered last week, especially nvidia which is higher by 3%. bounce back this morning. some weakness in the japanese yen is helping underpin the

better sentiment this morning. take a look at treasuries. we kick off the week after a lot of buying of the safe haven bonds last week going the other way. selling with yields higher. the 10-year yield lower at 3.7% and the 2-year 3.68%. watching for that uninversion again. we're 30 minutes into the trading session, here are movers we're watching. just a few hours away from apple's latest product event. many expecting a new iphone and more details on the company's ai plans. we'll head live to cupertino this hour to fill you in. good day for boeing shares. the company reaching a tentative labor deal with a union representing more than 32,000 workers here in the u.s. the proposed four-year contract could increase wages as much as 25%. we're watching palantir and dell on news both are joining the s&p 500 replacing american airlines and etsy on september 23rd. that's a reamers haval of ai --

reversal of ai fortunes. the antitrust suit over google's advertising kicking off in virginia today. we'll head live to the courthouse later this hour. lot of corporate news. on the macro front. >> give it to me. >> everyone watching inflation and we always do. >> still? >> well, that's a good question. it's not as important as jobs. but what happened on jobs friday is that it didn't get a very conclusive answer on will they go 25 or will they go 50 in terms of the cut. what's priced in right now and so we're if quiet period so that's why you're not going to have fed speakers this week and the week after the fed meeting, september 18th, priced in, 25 basis points cuts, that's 100% priced and the fed has all but promised that's happening, but not a size. nobody is talking about size. everyone kind of open on talking about size but they're not leaning one way or the other. there's about a 25% chance right now in the market that they go 50. so the debate becomes, should we

front load this because we're worried about losing the momentum in the soft landing or should we go 25 because there's not a ton of urgency to go big because the economy is still in healthy shape. depending on who you ask on wall street front, economists are all over the map. goldman sachs is 25. >> it did seem as though the theme in the minds of investors was once again, sort of revisiting the idea that things are growing slower than we expected and, in fact, they were a bit behind the curve, they should have moved in july and that we're going to have a recession. >> the market has been, yes, very hyper sensitive to the growth scare narrative and treegds bad news on the market as bad news for the markets. that dynamic has shifted. on the other hand if you go through the jobs number, the unemployment rate stayed the same. there was some acceleration from the month before actually from july which was revised weaker, so a lot of bears point to that, and wages are -- we're still

seeing real wage growth over inflation. it's not an all-out collapse. the question is just, they clearly better go fast. would front loading help ease the impact of some of these growth worries. clearly that's -- >> different voices here. dudley, who has been very -- >> dudley said in july it's time to go. >> right. >> that feeds into the behind the curve if they were late. even if they were late, just going 25 or does go 50 -- what kind of signal does that send? is it going to hurt confidence a and feed into the bearish narrative the fed is worried. >> a cut that would have taken place if there was talk some time back between meetings would have destroyed confidence. >> if they did an intermeeting cut. >> that's what siegel was saying at the time. >> there was no indication of that. however the speech at jackson hole from fed chair powell was important because he all but declared victory on inflation. so we'll still watch inflation

because it is still above target. but there's no indication that it hasn't been heading back to target. what we're expecting this week 2.3%, so a little bit higher than where they want it and 0.2% increase over the month. the reason it's important if it becomes hotter than expected then that could raise questions about the 50. right. they're going to want to be cautious it goes back down. >> before we get to mike and the markets, any charts you want to hit? you always come prepared. >> one thing i was looking at morgan stanley did a survey of 2,000 consumers and just because we're in election season and they asked about top concerns. they've been doing this since, you know, precovid. the top concern is still inflation. 62% say that is their concern. that really hasn't deviated as we've seen inflation rates come down, which i think is a reminder that americans aren't feeling the relief that we are seeing in these inflationary numbers because the cumulative impact of inflation is so high

and groceries such a big share of wallet purchase and that's where the pain is. it's a reminder as you hear, you know, vice president harris talk about a federal ban on price gouging or former president donald trump talk about lower gas prices this is the psyche of the american consumer even if wall street has moved on to worrying about layoffs and the economic growth. >> that's an interesting point. all right. that takes us to stocks as well as you well know, coming off what were heavy losses last week. market commentator mike santoli is here with us. has a new market column looking at the state of stocks as we approach the second anniversary of the bull market. >> october is going to be two years if we consider that, you know, the end of that 2022 bear market. and if you had told anybody pretty much then that, at this moment in september of 2024, we would have both inflation and real gdp basically running between 2 and 3% annualized, you would say soft landing achieved. that's what we're after.

the market i think is showing some misgivings about that. obviously, as sara has been saying, because we're very sensitive to the idea that we're losing momentum on the economy faster than we either hoped or expected and seems like there's a mismatch with where the fed is being too cute in waiting and the 2-year note yield being 1.5 percentage points below the fed's fund rate is the way of getting on with it. 50 or bust since september. the concerns that would spook the market are misplaced because we're thinking that that would just be a catch up to the numbers we know right now. not something that's, you know, some sinister message they've picked up. i do think it's the natural suspense that goes along with soft landing. it's always going to be, wobbling one way or another. the other thing happening today, i think the balance is interesting is, we got short-term oversold after last week's reaction relentless selling on a broad based, and mapping the experience of august on to september where we knew it was supposed to be a little bit of a choppy month and then in

the first week you had this big crescendo of selling below for the month. >> right. >> no way you could say we're going to repeat that, except there's the possibility that we might. maybe less has changed than the market suggested. another thing going on, we've surrendered to tech leadership. you have to deal with a nasmark that yes, they're going to balance, but it's not as if you can reach for the same win percent equal weighted s&p not -- barely off its highs, doing fine. like the tortoise has been going slower, but it's going in the right direction, whereas the faster moving parts of this market, the momentum, you know, kind of break. >> all right. take me through that if we've surrendered the leadership of technology, and again you've come to the equal weighted s&p as you do and should. >> it's now rate sensitive stuff and, obviously, very defensive. it's really hard to not embrace at least the market suggesting that there's more cyclical risk than we thought two months ago. let's say. nothing gets out of the range of

normalcy in the weakness at this point. the aggregate losses in the s&p are not really extraordinary at all. we're still a few hundred points off the august 5th low in the s&p. it feels worse. i know you were watching 4:00 on friday when i pointed out the yen. the yen was rallying big all last week. >> ten minutes ago. >> she did. >> and we're now completely off -- >> people underestimate the impact that happens on sentiment. >> for sure. >> unwind that. >> that carry trade. yeah. japan gdp numbers have been in focus. they were revised a little lower. maybe they don't have as much room to hike rates. japan's hiking, we're cutting. that's strengthening the yen and throwing the market topsy turvy. >> can i come back to multiples. >> of course. >> the quality weighted s&p is 17 times. >> thereabouts. >> the over 21 or so. >> at the highs in july, 21 times earnings suggests a lot of

certainty about a lot of big issues out there. if you have any doubts along the way it's hard to hold the multiple. 17 is a decent discount in terms of the equal weight but historically kind of elevated. you know, only goes back like 15 years to have good numbers on that. but, you know, used to be capped out around 16 except in the pandemic. my point is, it's only relatively cheap. it's not absolutely cheap. but for now, that's probably enough. when the fed is cutting, and if you're not going into a recession, you don't necessarily really have a huge pressure on multiples along the way. it's hard to, you know, get them to go up. >> are earnings expectations coming down as the growth fears kick in? >> third quarter revisions have been kind of sloppy and they've been lower. you have big beats in the second quarter but there have been downward revisions. for 2025, i think the numbers are holding up okay. i think the big complaint people say is well, they have to come down. they're too high. but they're almost always too high a year ahead. it's the way it goes.

>> right >> well, there's optimism i guess if they keep going on this rate cutting cycle things come back. thank you, mike santoli. our next guest says recent data points do not point to an imminent recession and investors should lean into the weakness levels. you think the market has gotten too pessimistic mona? >> look, coming into the jobs report we certainly were looking at a market through august was up 18%. could we have been due for a bit of a pullback or correction absolutely. last week we did get just that. the s&p 500 was down about 4.2%. really we saw a string of weaker than expected jobs data starting with jobs openings lower than expected, adp report lower than expected and the big one at the end of the week was the non-farm payrolls report which came in lower than expected and revisions to the downside were something that spooked the market as well. now, of course, to balance that we did get the unemployment rate

come down a tick 4.3 to 4.2% and the 144,000 jobs added, yes, we are weakening, but typically, when you're in a recession you see negative job growth. and also this is more in line with what we're seeing in the average maybe in the ten years prior to the pandemic about 165,000 jobs on average. so we're certain in line with that. look, there's no doubt that the economy is cooling. the labor market is cooling. but not collapsing yet. so in this backdrop where we could still see a soft landing, the fed is cutting and inflation is moderating. not a bad backdrop for markets broadly. >> i agree with you. if there was real stress out there you would at least see the number of americans filing for m unemployment claims go up and on a week-to-week basis they fell last week and they continue to be low relative to other periods of economic hardship. another good sort of real-time indicator. i guess i'm wondering, though, mona, why wouldn't the big cap stocks, nvidia, the ones growing

so much, be more safe haven, especially when yields are going lower and there are concerns about growth? >> yeah. you know, look, i think that theme of market leadership broadening is starting to play out. i know we've heard that multiple times even this morning, but it does feel like tech has come off the boil. it was the leadership. not only in the first half of this year, but really through 2023 as well. but, you know, valuations may have gotten extended even though earnings growth is keeping up we think in that sector and by the way, you know, this promise of ai, we still think it has to deliver, but some of the revenues haven't yet come through in a lot of the sectors we are hoping to see. so generally speaking we think some of this is just, you know, where can we historically when the fed cuts rates we tend to get valuation expansion and so where can we see that valuation expansion? is it in the sectors that have already been performing or will we start to see the sectors that have lagged and can do well in a

low rate environment, cyclically hopefully upturning environment down the road. those are the sectors we're looking at. think about the cyclicals and value parts of the market to play catch-up. >> and as for multiples, we were talking with mike about it, even for the equal weighted s&p, 17 sounds reasonable in some ways, bulls as he pointed out that tends to be towards the higher end for at least over the last 15 years for that part of the market. >> yeah. you know, it's a fair point. look, we're at the highs for the fed funds rate at 5.5%. we're probably headed towards at least a multiyear rate cutting cycle through this year and next year. and headed towards maybe a 3, 3.5% fed funds rate, which does put some upward momentum in valuations and so could we see an equal weight get above that 17 multiple? possibly. also keep in mind to the earnings growth point earlier as well, this year q3 and q4 were revised lower and still about a 10% earnings growth rate.

double digits next year is possible if we are seeing inflation is falling and the fed is cutting rates. consumer and the economy could see some re-acceleration in that environment and that would be a gun one for consumer cyclical parts of the market. valuation expansion we think can continue to be a tailwind for especially that equal weight part of the market. >> mona, thank you for joining us to kick off the week. >> thank you. >> mona from edward jones. as we head to break, here's our road map for the mohour. apple expected to unveil its latest iphone today. live to cupertino for the latest buzz. >> day one for brian niccol at starbucks. the issues the new ceo will have to fix as he takes over. >> the trial in the justice department's second antitrust case against google getting under way this hour. live to the courthouse in al dra, virginia, to find out what's at stake for the tech giant. the dow up more than 400 points.

nvidia up 3% or so. remember it's still down about 11% month-to-date. we'll be right back. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future. a future where you grew a dream into a reality. it's waiting for you. mere minutes away. the future is nothing but power and it's all yours. the all new godaddy airo. get your business online in minutes with the power of ai.

craig here pays too much for verizon wireless. so he sublet half his real estate office... get your business online in minutes [ bird squawks loudly ] to a pet shop. meg's moving company uses t-mobile. so she scaled down her fleet to save money. and don's paying so much for at&t, he's been waiting to update his equipment! there's a smarter way to save. comcast business mobile. you could save up to 70% on your wireless bill. so you don't have to compromise. powering smarter savings. powering possibilities. welcome back to "squawk on the street." it is glow time. apple expected to announce its latest iphones, apple watches and air pods at its product event this afternoon. steve kovach is live from apple's headquarters in cupertino. apple not really participating in the tech rebound today, steve. >> yeah.

not so far. it's usually one of their sell the news type of events with the iphone events. it's kicking off in about three hours in the building behind me, the steve jobs theater. there are three big questions investors are going to want answered today by the end of the keynote. first of all more details on the rollout on that timing for apple intelligence. that's the ai platform that's going to be on these new iphones, including which features are available and when. that also includes the chatgpt integration we heard about in june and possibly integration with google's assistant called gemini. executives teased that could be coming in june. on top of that we're looking at the pricing for the four models we're expecting it to see including price increases. last year apple increased the price by $100 on the iphone pro max the most expensive model. could an ai bump or ai be a reason, again, to bump up prices based on what the hardware capabilities will be to make the ai stuff possible. finally this one is a little bit

more nebulous, but apple is going to need to tell a compelling story around artificial intelligence to convince people to upgrade their iphones, maybe even earlier than expected we've seen a lot of attempts at ai hardware this year, samsung has tried it, microsoft has tried it with the copilot pc, bulls it's been tough for them to all break through. including with microsoft, they actually had to unwind some of their ai features due to some security concerns. on top of that it's really unclear what the demand is for all these artificial intelligence gadgets we're seeing. so far all the attention is on apps you can run on the phone you already have right now that includes chatgpt and all those other ai apps we talk about so much. i got survey data for you guys. this is from kenhis. they say 7% of people, quote, very high inclination to buy a phone because of artificial intelligence, and that's the global number. it gets worse in the united states where apple intelligence is launching.

just 4% here in the u.s. we're going to have to see if apple can make a better case for people to upgrade their phones because of ai, guys. >> steve, i guess what are your expectations having attended your fair share of these kinds of events? do you have anything in terms of thoughts about whether they will be able to make that compelling case as you point out that is nebulous but so important? >> yeah. that's exactly -- that's going to be the challenge, david, and what they -- what apple has done in the past for things like 5g or siri, for example, they've been making it seem exclusive and revolutionary. also during covid they basically stopped doing live demos and live presentations. there are these kind of slickly produced hour to two-hour-long infomercials about what they can do and i've been told by apple to expect if those get a let more views necessarily than when they do the live demonstrations. that's another way to show what devices can do in, perhaps, an

accessible way than what we've seen from microsoft, samsung and google so far. >> i said glow time because that's what they had on the event invitation. >> that's a reference to what siri is going to look like. when you activate the border of the screen around your phone will start glowing. that's an important thing you bring up s sara. the super charged siri that we've been hoping for for so long, isn't going to happen soon. it's probably not going to happen until next wear. what we will see with apple intelligence is a limited set of features. they're not going to dump everything they announced in june all at once. a slow rollout in u.s. english at first and then move on from there. >> until siri can, you know, i can say siri, send me to all the best restaurants that sara eisen likes during the next two weeks make a reservation for me and invite the people i want there, i don't know, what am i getting,

right? >> we're a ways off. >> just call me. old school. >> that's what i do now. >> i won't make your reservations. >> actually, i mean, that will be a key thing. of course, steve, that's years away or is it? i don't know. >> maybe months away. so there's a really interesting thing going on here, david, where developers eventually are going to get access to apple intelligence and be able to tap into it. right now they can't do that. they're going to get developer tools in the coming months. kind of like you said, you know, third-party apps from uber to starbucks to delta airlines all will be able to tap into apple intelligence, take advantage thatch new version of siri and use the data already stored on your phone to do the scenario you laid out. give me restaurant recommendations that are on the way to the airport before i go to jfk and catch my delta flight. in theory it could do all those things. we're going to have to wait and see several more months if that comes to pass. >> steve, thank you. while apple's betting big, of course, on ai, another key part

of that trade continues to show weakness. that would be the chips. the smh down 20% in the last couple months, although as you see higher today. over to seema moody who has more on what's going to get things back on track after a difficult week last week. >> if you look through the carnage, david and sara, the semiconductor stocks with exposure to artificial intelligence that have sold off the most. expectations were the highest for these names going into earnings. goldman's team says this morning for gen ai they need three things, size of application, and evidence that hyper scalers can easily absorb the cost of building these models. two additional catalysts, taiwan semi reports monthly sales tomorrow morning a read on the broader demand picture. tsmc does manufacture 90% of the ai chips. the ceo has been hinteding at a supply crunch over the past

couple months and look for more on that. no semis reporting this week we will read the oracle and adobe tea leaves. there has been talk of rotation out of chips into software. take a look at this chart. software stocks did decline following the weak jobs report it's outperformed chips and broader tech. we'll watch to see if that continues with two names reporting this week. >> thank you very much for that setup. still to come it is day one for tarbucks' new ceo brian niccol. the issue he needs to fix, what it could mean for the stock. we'll talk all of that next. stocks in rally mode today, technology, though, at the top of the list. names like nvidia coming back. intel rebounding 3%. we're off the highs of the day so far, but still going strong. we'lbeig bk.l rhtac

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. welcome back. i'm silvana henao with your cnbc news update. jury selection is set to begin this morning in the federal trial of three former memphis police officers charged in the death of tyre nichols, charged

with violating his civil rights after his videotaped beating by five officers in january 2023 caused nationwide protests. the two other officers pleaded guilty. the trial is expected to last about a month the urgent search for a suspect wanted in connection with a shooting spree on a kentucky highway has entered its third day. authorities say joseph couch opened fire from three perches along interstate 75 saturday hitting a dozen vehicles and injuring five people. an arrest warrant charges couch with attempted murder. around 11,000 people have been forced to evacuate near highland, california, as a fast-moving, uncontrolled wild fire threatens homes and businesses. the line fire about 70 miles from los angeles, has now scorched 20,000 acres and is zero percent contained. david? >> thank you.

it's a big day for starbucks as the new ceo brian niccol takes the helm. shares are up 20% since, of course, the big surprise announcement last month it is the best performing stock in the s&p over that month. perhaps not unexpectedly. kate rodgers has been tracking the action and really what's ahead for mr. niccol. >> david, good morning. niccol is staring down challenges at starbucks in its two key markets, here in the u.s. and in china. the balance will be maintaining starbucks' global position as a premium offering ensuring a competitive edge in the value-driven environment which is something that chipotle really executed well on with him as ceo. now last quarter same-store sales fell 2% in the u.s. and executives mentioned consumers being more discerning with spending and revealed plans to lure them in with discounted offerings which is uncharacteristic for starbucks. it's revamped its mobile order and pay system opening it up to nonreward members on the app and working on speeding up service times with the new siren training system for baristas.

the fall menu lineup including pumpkin spice will likely boost sales but complex beverage orders have slowed down service in its locations, frustrating customers who are willing to spend at starbucks. china, second largest market, same-store sales fell 14% last quarter, more competition from cheaper competitors undercutting it on price. the former ceo said the company was in, quote, early stages of looking at strategic partnerships to accelerate growth in china on its last earnings call. the key challenge for niccol reminding customers why they love starbucks and worth it to comep in at chipotle he would remind workers and analysts of the goal to delight the customer and make it worth it for them to come to chipotle every time and something they made to recapture at sbutarbucks. >> my question, is he going to be at work? isn't he working remotely from home for more than $100 million? >> that is part of the contract offering, but he's been visiting cafes, the company said ahead of

taking over as ceo and i guess will be there today doing the same thing. >> yeah. okay. well, not like there are any expectations. thank you very much. >> thank you. we are continuing to watch a number of antitrust cases making their way through court. the kroger-albertsons deal. >> week three in court. many tracking that action closely. a deal on the time it was announced there were many questions from the antitrust perspective, not unexpectedly was challenged. i would draw that distinction with the other deals where we've been surprised when the ftc or the doj -- >> tapestry starts today. >> in week three. tapestry-capri today. you have the -- as we discussed at the top of the show, of course, the doj with google and ad tech. >> they're separate. the kroger-albertsons one is around the political heat of high grocery prices. rodney mcmullen testified and

the ceo of albertsons and rodney said we're going to lower prices as soon as the deal goes through, albertsons prices are higher, a lot of room for us to do that, skepticism around that given some of the past mergers that we've seen in the grocery market space and so we're expecting a decision by the judge, a federal judge in portland, by october 1st. she's a biden appointee and hasn't given any indication of how she's going to rule. this is a preliminary injunction. >> they could. once you get a p.i. it is the end of it. >> wraps it up. >> on tapestry-capri it will be interesting because it seems easy to argue that there are a lot of competitors in fashion. >> it does. >> the ftc is arguing accessible handbag market is two companies. >> they created the market based in part on some of the quotes from the executives themselves that wasn't clear ever existed. accessible luxury. >> lena khan and the ftc point to this case, that is one that

is going to be -- >> that is where i draw the distinction. we were talking about albertsons and kroger when the deal announced having antitrust implication, not this one. >> i know. this one was a bit surprising. that's set to last over the next ten days. we'll keep you apprised of details. as we head to break, glow time as investors get ready for another big product event from apple in just a few hours. we'll get the street's take in just a few moments. crypto related stocks coming off big losses last week rebounding today. which menas to watch when "squawk on the street" comes right back.

checking in on stocks. we've got a rally and rebound. the s&p up 0.75%. we're coming off our worst week for the s&p since march of 2023 when the regional banking crisis was going on. nasdaq up 0.5%. not as strong as it looked a few minutes ago. apple not participating, for

instance, but nvidia, tesla, amazon, meta all the names that got hammer last week in the selloff, they are bouncing back a little bit. every sector remains higher. it's been a tough start to september for crypto and stocks like coinbase are getting caught in the crossfire. to mackenzie with the latest. nice comeback today. >> yeah. so u.s. stocks with ties to crypto are staging this comeback this morning as the nasdaq comes off its worst week since january of 2022. on friday a basket of crypto-related equities tracked by schwab fell to its lowest level since february with coinbase closing out its worst week but industry names coming back strong. coinbase and bloc with miners like riot, cleanspark and marathon are in the green as bitcoin reclaims the $55,000 price threshold. micro strategy up 5% this morning with michael saylor telling cnbc earlier today the firm's bitcoin buying strategy is behind the stock's big gains.

>> since we levered it, we're up 825%. the number one performing stock in the s&p is nvidia, up 821% as of friday. we bet every single company in the s&p index using bitcoin strategy. >> still, many of these crypto line equities are firmly in the red year-to-date with crypto's overall market cap down 27% from its 2024 peak. even those new spot bitcoin and ether etfs haven't escaped the selloff. investors pulled almost $1.2 billion out of the spot funds in the last two weeks and their longest stretch of losses since launching. tuesday a lot of traders looked to see whether crypto gets a mention during the first presidential debate between donald trump and vice president kamala harris. trump branded himself as the pro-crypto candidate we have yet to hear from the democratic nominee on the subject. guys? >> yet another issue we're going to see if they entertain.

thank you. >> i think the biggest applause line at the bitcoin conference from donald trump when he bashed gary gensler, not a fan, that industry. >> gensler doesn't have a lot of fans. turn back to apple, the company expected to unveil its newest watches, air pods, lot of things as well as the latest apple intelligence. joining us to discuss evercore's isi, $250 price target and as you expect a buy rating as well. what do they have to do today for you and other investors to be happy? >> i think details on the apple rollout in terms of the feature set, the siri 2.0, you know, does that come out in september or later, and the scope of the geographic rollout of apple intelligence are two things people will focus on and ingredients that will decide if this is going to be a super cycle in the next 12 months or going to be potential longer cycle. those are two things we focus

on. >> and what are your expectations? do you think they're going to be successful? earlier we were hearing from steve kovach in terms of at least presenting the use case when it comes to ai given how early it would seem to be in terms of consumers actually using it for something that they don't already have access to via their own apps? >> yeah. listen, i think the hardware upgrades on all these phones are going to be fairly standard, right. the big differential is going to be the apple intelligence feature. our take would be the basic features will come up with summarizing your text messages, prioritizing your tasks. i don't think that's enough to trigger a big iphone cycle. you need a siri 2.0 to come out. apple called the event glow time to get folks excited about buying the next iphone. our sense this might be a bit more of a long cycle. we think about this, it's unlikely a super cycle but may be a super long cycle for apple where you have multiple years of mixing unit growth. you also want to pay attention

to when do these features and apple intelligence get rolled out in china and europe. you need a broad rollout for this to work. this is going to be multiple years of upgrades, rather than one upgrade we've seen in historical super cycles. >> maybe not a super cycle but what does that replacement cycle look like? how many people like me who have an old iphone dealing with it and dealing with it losing its battery charge by 10:00 a.m. and waiting for new technology like this to come even if it's not necessarily transformational. >> listen. two simple reasons why people buy the iphone. 70% is the battery life starts to degrade or a factory change. two things that people gravitate towards, right. what i would say, i think from that aspect if you have an iphone 14 or 15, there's probably enough to buy a new iphone. i do think if you look at the iphone replacement cycle

hovering around 42 months. the iphone in most people's hands is the 12 or 13 right now. you could have a very logical upgrade cycle that would examine o come out of this. are you inclined to wait for all these features to come out to buy the iphone 16 or save a couple hundred and buy the iphone 15 pro because they're good enough. >> yeah. that is a key question. i know which way i'm going. aimm ahmed, thank you. >> shelling out for the extra features. >> no way, not for my kids. >> for yourself? >> i have to rely on work to get me my iphone. >> the doj's antitrust trial against google getting under way. 'llaouthwel y t e case and what's at stake for the tech giant. back in a moment. (♪♪) in life, i'm reminded that it's not about the destination.

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all right. today the markets may be rebounding from their worst week of the year so far, but one trader does not trust the bounce and is using the futures market to play the other side. find out how and tune in to our market navigator segment later today on "power lunch" at 2:00 p.m. eastern time. the type a cpa. the bootstrapper. the bootmaker. yeehaw [narrator] but many do have something in common. we all trust schwab with our wealth. [narrator] thanks to our award-winning service, low costs and transparent advice. every day, over a million multi-millionares trust schwab with more than two trillion dollars of their wealth.

googs back in court as the tech giant faces another antitrust trial. eamon javers is outside the courtroom heading in i assume soon. eamon. >> yeah. that's right. they've been up and running here this morning. the lawyers, legal team for both sides arrived early today and heavily caffeinate on their way in getting ready for day one of the u.s. versus google here. this is an ad tech antitrust case. it's different from the case that's in federal court in washington, d.c. that was the search technology case. in that case, the federal judge found google was a monopolist

and now proceeding with what they call the remedy phase there. this is day one. no findings of fact. wave heard the opening arguments. the department of justice arguing that google basically operated out of the traditional monopolist textbook over the years. also saying that traditional monopolist playbook. they acquired competitors and squashed competition. the department of justice citing a 2013 internal google email in which one executive wrote, our goal should be all or nothing, suggesting that was a damning statement by a google executive. google's lawyers arguing the government has this case all backwards, suggesting they're gerrymandering the market, and google's market share is actually going down, even as its revenues are going up, if you count the market in the correct way, as they say. they said if google loses here, the big winners will be microsoft, amazon, meta and

tiktok. they close the opening arguments, both sides got about half an hour, and then they moved on to the first witness. the first witness is tim wolf, the chief revenue officer for ginette, the newspaper article. they say they pay them $10,000 a year for ad and their business has suffered over the past decade with the fallout in what we've seen with print advertising and online advertising for newspapers. >> jim cramer making the argument earlier, saying the wheels of justice move far more slowly than do the wheels of the technology business and that businesses such as trade desks, which may not even exist in a significant way when this complaint was first lodged, are now taking more and more of the market. is that going to be something that is -- holds sway, do we think, in the courtroom? >> reporter: yeah, absolutely. i mean, you heard google's lawyers this morning arguing the government'senning of this market is just out of date maybe

by about 15 years. they're arguing about a web-centric universe that's gone in the age of mobile, social media and the apps we use on our phones. in the search case, they're now in the remedy phase where they're trying to decide what to do with google now that it has been deemed to be a monopolist there. one question is a.i., how do you separate out a.i. and goo the government ban google from using a.i. in its search results. thegts a question of the future of the industry that's very forward-looking. the government will have to take into account now as it figures out what it wants to do with google overall, whether they go for a big breakup or something more narrowly tailored. >> eamon, we'll keep an eye on it. thank you very much. eamon javers. coming next hour, abercrombie, with a concern over the environment. cnbc and boardroom's game

plan conference is tomorrow in l.a. you can scan the qr deco or visit cnbcevents.com/gameplan. and using workday to put 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. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah. ♪ i'm gonna hold you forever... ♪

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the red, a few key names are bucking the trend. let's get over to dom chu with the breakdown. >> in you take a look at the overall nasdaq 100, that 5% drop is what we're focusing on. it's due to large underperformance in key mega cap names, microsoft, elsewhere at names like alphabet and whatnot, you can see microsoft, nvidia and google all down roughly 10 to 17, 18%. here are the standouts. ten stocks on the nasdaq 100 on a quarterly basis are going higher. these are among the names. gilead and almumi. keep an eye on a couple of consumer names, starbucks, mondelez up 15% to 18% as well. two outperformers there. the three best performing stocks

are libra, fortnet so keep an eye on those names, david. back over to you guys. >> thank you very much. dom chu at hq. keeping an eye on apple ahead of their glow time event, down 1.3%. as for me, it's go time, as in i got to go. our live market coverage ntueafr is. helps to build a stronger tomorrow. at pgim custom harvest, our unique direct indexing approach seeks to help investors achieve better after-tax outcomes. pgim investments. shaping tomorrow, today

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good monday morning. welcome to "money movers." i'm sara eisen with mike santoli today, live from post 9 of the new york stock exchange. today markets trying to bounce back after all three major averages come off their worst week in more than a year. cantor fitzgerald ceo howard lutnick is here with his outlook on stocks and thoughts on the presidential election. abercrombie up 112%. the ceo breaks down her outlook. real estate titan rick caruso with office vacancy at an all-time high, we'll get an outlook for the sector and what a rate cut could mean for the markets. markets have been