where steve is, that should be -- we have a lot to talk to him about. it will be the day after the day after. let's get a final check on the markets very quickly the futures down for the dow by 150 points nasdaq has turned around it's up by close to ten points folks, that does it today on this 9/11, never forget. right now it's time for "squawk on the street. good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. today mark 23 years since the september 11th attacks memorials are being held around the country. you are looking at a shot from the 9/11 memorial in manhattan and a ceremony at the pentagon we will have a moment of silence here at the nyse this hour meantime, premarket is red august cpi comes in as expected.

core runs a tenth hot. our last big print before next week's fed meeting our road map begins with inflation. we'll have a look back at last night's harris/trump presidential debate. both candidates did square off on occasions that included the economy. noernlg mortgage rates falling for a sixth consecutive week we'll talk about the state of the housing market let's begin with reaction to cpi. core running three-tenths. >> we play this game all the time it's a little, i think, debilitating because people will come out and say, not 50 well, let's sell other people say, oh, if we had gotten 50 it would mean there's something wrong, particularly with what we had yesterday in the banks. when you see jpmorgan go down, you start to get, okay, what is

out there? every time we have that. then when you see this close to the fed meeting you say, what do they know? i think that's another bad game. the idea if they did 50, they know something i think we should take it as it comes. >> right we're going to get 25. >> there was commentary about 50 or 25 -- >> we have to talk about something. >> oh, geez. >> by the way, on the banks, which we can talk about and we'll get to, that was an interesting day yesterday. >> that's what i thought was -- not necessarily related to things like this but much more about investment banking revenue not coming in where the analysts who follow jpmorgan, for example, had expected based on what we heard yesterday from doug pinto at barclays. >> i can talk for a second about doug pinto >> yeah. >> i don't know the man. >> nor do i. >> but he showed a lot of worry and concern that may not be

accurate versus the bank itself because when i listen to him, i came away and said, cut numbers, jpmorgan carl, jpmorgan is doing incredibly well. i do not know whether doug pinto wanted to play a little like jamie dimon who always says -- he says, listen, be careful. every time anyone said anything -- the -- he was asked questions. he came up with a negative answer he's either a negative person or far more concerned than i thought. i came away thinking, don't touch that >> isn't the bigger story ally, worst day since 2020 >> they have the suboptimal borrower the one thing pinto did say, look, we don't have any of those but they have much better clientele. i was shocked that this man could be as negative, david, as he was given the fact they have a fortress balance sheet, doing well i came away saying, what do i

not know about jpmorgan? >> interesting >> the stock did get hit there was a lot of things buffeting the banking sector carl mentioned ally in terms of consumer credit and worries there, and then you also had the rollback of certain capital thresholds for basel but perhaps not as much as had been hoped for. you generally had a selloff on all the banks. wells fargo was -- >> that stock had already been crushed. look, when you have something -- when you watch jpmorgan, which had been the leader and that was the essence of the so-called broadening out, a fellow just crushes it pinto crushes it again, i don't know. maybe he's naturally negative. i have to know more about him. they put him out and the guy really has to do a little bit more of kind of an optimist view some of his thinking was optimist because that was one of those things i just said, what's

the matter with jpmorgan it's one of those. it was a high-pitched repulsive screaming of like -- and then pinto. what is he like a camaro what is this pinto there was this moment i just said, stop trading. >> and he turns into fire, yeah. >> isn't that the vega >> yeah. >> i would put out other people. >> we heard from jamie dimon yesterday talking yesterday. >> i felt great about jamie. >> saying doug pinto is the man. if something happened to him - >> you mean come out and cut numbers and make me feel awful about the stock? that happened. that was good. >> pile on top, buffett's sales and downgrade today of morgan stanley out of goldman. >> it started going up, a lot was the yield. that was one of those downgrades

that, basically what happened to the capital markets? i merge that downgrade with jpmorgan and i said, time to buy the tool and die stocks. >> tool and die. what are you buying -- >> toolworks. >> okay. >> the bank stocks became yesterday in one session, thank you, mr. pinto, the bank stocks became -- and of course, ally, made me feel, there's one place you can't possibly touch going into a rate cut. that should be nirvana pinto is like, we care about nii. he said, you guys are way too optimistic we weren't even optimistic i don't know i don't know you know, david, i don't know. >> one thing that we should probably mention while we're in the neighborhood is the deflationary effect out of china. yardeni today uses the d word to describe what's happening in

china, both a recession and depression, weighing on oil and bonds and the dollar. >> that economist story, the cover story which basically when the numbers get bad, they stop putting out the numbers. there's a third world country. one of the things incredibly bothersome about china, you'll see some retailers generate pretty good numbers but then the retail sales numbers are horrible the temu/shein thing, maybe they're running up against the quality issue that i ran into when i bought lingerie for my wife. >> i thought it was a bathing suit. >> i want to get a little more specific there's chevron, exxon and shein. maybe me three things made well. >> three big chemical producers. i get it. >> i left out dow because dow is trying to be more responsible.

>> to get it back to china it's not an unimportant part of the global economy and it certainly is not moving at a fast pace right now they still claim they're growing at 4%, 5% -- >> i don't believe that. >> a lot of people don't believe that they're dealing with deflation, except for food prices, but that was brought on by drought. >> china, a big loser in the presidential debate. >> and still dealing with the property issues which are enormous so many municipalities were able to meet their obligations by selling land. >> when i want to cause pain to u.s. companies, there's always an investigation like proctor what did proctor do. sell a razor too expensive proctor, that's the problem. come on. companies are fiercely trying to - >> they're also going to export deflation to a certain extent. the evs, and you and i have

discussed the last few days, or southerly panels, they're subsidized but provide a real benefit to the potential consumer in certain places, if you can buy them for example, a nice decent ev you can drive and cost you $13,000. >> and spain is starting to talk about whether they should be beholden to it peter navarro will be making a big comeback if president trump is re-elected. and navarro has written incredible texts about what a villain china is i think china has to be -- if i were china right now, i would be laying real low and not putting -- not coming up in the straits of taiwan. if they want to provoke, it's a bad call there's no one in either administration that likes china right now. >> speaking of geopolitics, one topic covered last night in the contentious presidential debate between the vice president and former president both candidates now neck and

neck in the race for the white house. eamon javers joins us with some highlights good morning, eamon. >> good morning, carl. it was lively. it was at times raucous, the debate between the two candidates in philadelphia last night as kamala harris, the vice president, was largely successful in her goal of getting under donald trump's skin, baiting him to debate on issues that make him appear to be on the defensive, such as crowd size or inheritance from his father and how he spent that for her part, harris ducking questions on her flip-flops on a number of prominent issues you can see from the body language, going right in for it the handshake early on these two folks had never met before harris walking right over to trump's side of the stage going in for a handshake that appeared he didn't want to give from that moment on, she was successful in sort of getting under trump's skin and provoking more angry responses from him as the night went on. the early part of the debate,

guys, talked a lot about the economy, including donald trump blaming the biden/harris administration for inflation here's what he said. >> we have inflation like very few people have ever seeing before probably the worst in our nation's history we were at 21% but that's being generous because many things are 50%, 60%, 70%, 80% higher than a few years ago. this has been a disaster for people >> for her part, kamala harris said that donald trump's economic plan, including his tariffs, will be bad for the u.s. economy and she cited goldman sachs as her authority on that. here's what she said. >> the best economists in our country, if not the world, have reviewed our relative plans for the future of america. what goldman sachs has said is donald trump's plan would make the economy worse. mine would strengthen the economy. what the wharton school has said

is donald trump's plan would actually explode the deficit >> guys, that's one of those bait pieces we're talking about as kamala harris there mentioned the wharton school at penn, obviously donald trump went there. he could not resist responding to that. the harris campaign clearly knew that by dropping that mention of wharton in there they would get under trump's skin it seems to have worked last night. no real indication whether there's going to be another one of these debates, guys trump was askedabout that on fox news last night. he said he won the debate. so, therefore, he doesn't think he necessarily needs one the harris campaign said they would be open to another debate. we'll see what happens back over to you. >> a lot of performative stuff last night jim, i'm wonder if you're surprised of things that didn't get mentioned, no tax on tips, unrealized gains, corporate tax. >> i was look, we got to get -- as someone who has started a lot of small businesses, the emphasis

by vice president harris on the $50,000 break for taxes is something that is so -- that rankles me because you don't make any money when you start a business everybody knows that nine out of ten businesses fail as it is, so that doesn't really spur economic growth >> you don't think a 50$50 $50,000credit -- >> it means nothing. >> will start a business. >> man, they're stupid you want revenue growth. you have to have a big bank account, but if you start by coming up with, that's what you need to break? you should have what they did with pp, you give people money tax rate, there's no gains i think that is so much less important for harris than the idea that she's notgoing to give the same high increase in taxes that biden would have done that's what i would have done. i would have talked about that. >> talked about lower capital

gains -- >> isn't that the essence? >> eamon, i'll bring you back in there wasn't a deep discussion whatsoever of these matters, as we just pointed out. trump continues to tell people that somehow we're not paying for the tariffs. i can't imagine we're still having this conversation and harris did not go into any details of her economic plan or defend the economic moment in the country right now, which is obviously not quite as dire as i think the former president would certainly have people believe. >> look, this is a massive debate with a massive political audience of millions of americans watching they're not going to get into technical details about tax rates on accrued income for billionaires i think what you saw was a focus on food and shelter, right the price of food at home, inflation was a topic they both talked about harris mentioned her idea about trying to lower costs for housing for americans. there's a debate about whether

that will just go right to increasing prices for houses, but she did mention her ideas there. those are the two areas where most americans experience the economy, food and shelter. i think there was some general debate there, but this was not the venue where either candidate was going to get into bullet points and, you know, sort of the ted talk about the economy this was an opportunity to make very broad points and try to break through and have that cultural moment. >> and why did it matter, as we deal with it, it's top of the show, how low rates are going to come down because inflation is much more under control, why was there not a reference to other times in history -- the jimmy carter period, which was far worse. you had a real chance to go right after trump and you just didn't skate where the puck was going. >> yeah. >> look, i think trump is -- he's making the argument that this is the worst inflation that america has ever seen. that's arguable, certainly

but i think what -- i've talked to eric trump about this what the trump campaign wants to increase energy production, lower costs in the country overall, and they think that will help the fed lower rates going forward. >> well, energy production, all-time highs as we heard yesterday, inflation adjusted, household income now outpacing inflation since 2019 things that did not get talked about. eamon, thanks. after the break, a moment of silence at the bigoa a t brdndhe nasdaq in remembrance of 9/11. wall street forecasts over $100 billion in sales for weight loss drugs known as glp-1. even with disliked and inconvenient injections. dehydratech processing of a glp-1 drug demonstrated improved blood sugar reduction and reduced side effects.

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the new york stock exchange and nasdaq each about to observe a moment of silence, remembering and honoring the victims of the 9/11 attacks, which occurred 23 years ago today. jim, we talk about this every year the challenges to keep that memory fresh for people who were either too young at the time or in many cases not yet born.

>> i think that, and i've always felt, there should be a national way so subsidize people who come to new york and go to the museum because the museum is -- you'll never forget if the you're 10 and you go to the museum, you will have a really good understanding of what occurred that day. >> let's get that moment of silence. >> robert j. maxwell

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welcome back to "squawk on the street." six minutes before we get started with trading at the new york stock exchange. let's get a mad dash and talk nvidia j jensen huang will be on stage with david solomon, the ceo of goldman sachs. >> very specifically, i want to talk about the problem of nvidia there's a lot -- the networks view -- what there is a

complication this new chip, very powerful, really hard to make, but there's a couple of releases today, really good release of oracle and nvidia together. a.i. supercomputer, the largest in the cloud to deliver up to 131,072 nvidia gpu now we're all over our heads now we're all trying to figure out what do you do with that i immediately shot a memo -- a series of questions to nvidia saying, well, what does that mean and whenyou don't know what it means, and i spent my -- i've spent 12 years trying to understand nvidia. what are people going to do, they will own it because they hear it goes up. we're at a moment where nvidia is too hard to understand and we need jensen to explain it. if that's late, what does that mean i say we're at a moment of confusion at nvidia, not a moment of slowdown. >> didn't they give a bit of explanation in the earnings when

they discussed and gave detail around blackwell and why it was going to get up to full production not too long. >> that's important. for instance, we found out that sovereign users want it. more importantly, you look at it and you can say, i don't know exactly what it does but, boy, does larry ellison want it and oracle really wants it they want to be involved with the supercomputer. that's the term we should be using, not even platform, just a supercomputer. i just point it out because until all the people who don't understand what nvidia do, you're not going anywhere. >> we'll keep an eye on oracle shares after that strong day yesterday as well. keep it here

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take a look at the premarket as we continue to digest cpi shelter was a big krulculprit. >> i think we'll hear from doug yearly at toll brothers. i think he explains it better than anyone. we have the right person to talk about why shelter won't come down. >> airfares will tick higher -

>> that's mazing. >> some say with what oil is doing, that may not last. >> we had some airline executives say august is going to tighten because they have taken back some planes i found that number appreciable. >> we'll talk more about the internals in a moment as we get the opening bell at the big day. today dedicated as a day of service and america. a nonprofit supporting the 9/11 community and military families of the fallen. jim, so important. in addition to the stuff you've done on the redevelopment of downtown, things we talk about every year. >> right i'll be at the cantor fitzgerald event that helps raise money they do a great job every year >> and don't forget the first responders as well so many of whom sadly have had illnesses related to the site itself as well not just the initial victims

this horrific tragedy. 23 years but i still have that moment when i was back in fort lee when i got a phone call about that first plane. >> yeah, i remember. i was down the block the building was locked down there was a rain of research i remember being hit by dean whiter research when they let us out. then you saw all the pictures of people they were looking for and none of them lived it was all very surreal and horrible i think people -- i wish people had even seen the fire ep went on for days and days and days. it was kind of our pearl harbor. we didn't know what was going to happen and anyone who recalls it just wants others to know. >> right, right. we will be having our attention keyed in on downtown and the pentagon and shanksville,

pennsylvania, today as well. as for the open here, jim, a little disappointment, i guess, in that core print of three-tenths but three-month annualized cpi, 2.06. >> that's when you go back to the debate, that would have been a fact i was surprised wasn't used now, i mean, if you're going -- would that be like you're not running against biden, you're running against me the inflation numbers are something to hail. >> yes, they are well, versus -- it will come down a great deal. a former president trump and the debate, that 21% number he's talking about over pre-pandemic or right at the beginning to the current moment, which i think is closer to 19, carl, but roughly in line. that wasn't clear from his comments at the time and we are obviously down to 2.50. >> that's the crux issue i think everyone knows the crux issue is economics and economics is inflation

and that is -- that cuts to trump's favor only because of where we were in 2019. >> gas prices did not get talked about. >> no, $3. >> 60-day moving average down almost 30 cents. prices for gasoline are basically where they were a decade ago. >> look, i feel bad. the thing was such a jumble, the debate, it's hard to criticize anyone and give them a moment for not having the stats for where inflation is, but there's been major -- really, major progress made against inflation, but only against this period, say, 2021. we're not back to where we were in 2019. it's possible to say, listen, inflation is still out of control. >> although yesterday we saw online grocery prices down for the month by the most since adobe started tracking the data. i know that has implications for restaurants. jim spoke to wingstop yesterday. take a listen. >> you can see it in their behavior, and i think you hear a lot of other brands talk about

it they're being more disconcerting with how they spend those dining out dollars. we know if we deliver on that quality and value that they're looking for, we're going to continue to win our fair share. >> one last question is it possible that the other guys just thought there was -- they could charge whatever price they wanted almost contemptible to the average american? >> it could be because there was a lot of money that was being pumped into the economy, into the consumer's bank account, so they weren't having to be as disciplined as they are today as inflation has settled into the levels where it is today >> i am so glad we ran that clip michael skipworth had 28% comparable sales growth. how did he have that he didn't make it by price he didn't raise price. he got it by traffic now, michael would tell you -- david, i think it's really important. i don't know if you've been to wingstop i had it for dinner last night it's quite good. what matters is he was basically saying, the other guys took

advantage of america they thought they could get away with higher prices it turns out, our gain is their loss almost zero sum. because the days when you could raise price with impunity and not think you would lose customers is over. wingstop on the fact they offer a good product for a low price. >> very interesting. and i had not realized the stock had that kind of a move this year we started the hour talking about the banks and, perhaps, appropriately so they are down again, rather sharply. we're talking about a market that's off about a third of a percent but all the major banks we track down 1.5 or so percent. early going but a continued reaction to any number of the issues we mentioned, whether it was jpmorgan's pinto, you pointed out, you thought overly cautious or negative to the basel numbers to credit concerns overall. they're all down

david solomon going to join scott wapner later as well. >> where is the m&a? it's september we're not in august anymore. >> i got a lot of promises this year this is the year -- first of all t wasn't hard to have a year over year number when it came to m&a looking better than last year because last year was horrible and we have but nothing. nothing huge none of the giant deals. the kellanova deal was pretty big a couple weeks ago. >> yeah. >> but very little headline-grabbing stuff, certainly. even on the pe side, we keep hearing it, exits have to happen how do you do on exit? through ipo or sale. right now you've got a lot of funds basically at the end of their life span, so to speak you raise the money, you buy the stuff, you have to sell it and a lot of firms waiting to get something done it's been interesting to note by its absence, both ipos and m&a as this year moves into the fourth quarter

>> and the to go to the sobering pi pinto, i got to sell jpmorgan right now a call, there was a moment we talked about artificial intelligence and technology carl, we have to spend more on cyber security that's dead weight loss. he said 130,000, maybe an impact, maybe not, completely incoherent digression on a.i. and it made me feel like a.i. is just another clown show. >> you're really a pinto fan, aren't you we have to get the guy on the show. >> i don't know the man. i think he represented the bank well if you want the stock to be under 200. >> we did get commentary out of amex the ceo says sequentially environment continues to be stable, slow growth. again, we're talking about a very specific cohort of consumers. >> look, steve has done a remarkable job the chart will tell you everything you have to buy every single dip of this thing and i think this is the same small business user. the millenials love it, gen z,

gen x, whatever -- >> give me a gem. >> there was a -- there's a quiz there were promises on m&a there were promises on ipo who started the promises, promises >> who started it? i don't know -- >> maybe the finest song and dance man of our generation. >> eventually became a disney king. >> he did everything if there's not a plaque -- detective. >> very good peacock i got to represent peacock well. there's no pintoization of peacock, i'll tell you that much. >> a meme stock we haven't talked about, gamestop did report numbers >> they can sell stock. >> they're selling 20 million shares stock is down 13%. wanted to mention that not that many handful of movers on news, but that is one of them gamestop still hanging in there. sales were $798 million for the

second quarter down pretty substantially from the prior year second quarter, which was 164 billion, as you take a look at that stock. >> sales were down huge, but they made money. they make money by selling -- they should sell a lot of stock and buy, i don't know, buy the two-year >> got a lot of cash. >> two-year, by the way, got to 3.55. >> i was thinking of selling my two-year but i don't know where to put it, other than buy $900,000 and sell them -- doug. >> you want to bring him in? >> yeah. mortgage rates hitting the lowest level we know from doug's last conference call. toll brothers ceo doug yearly joins us you have had a remarkable run. what you have done is tap into a vein of people who want quality

homes and are willing to pay almost 28% pay cash. you have something that we in this country want, aspire to and want how did you do it? because you own that whole cohort. >> thanks for having me. as you know, the company was built on a luxury brand, america's luxury home builder. we catered to move up buyers lately, the last five years, we can't ignore 70 million millenials 40% of our homes are sold as first-time homes but it's the leading edge of those millenials it's a couple 30 years old that may make $200,000 that can afford an $800,000 home. they never thought they could get that first home from toll but now they can we have widened our price point, we've widened our geographies. we build more spec because the retail market is so tight that we're filling that void that sits there business has been great. i think the future looks good, particularly where rates are

headed. >> let's make some news, and i'm going to put you on the spot here we do have your august 21st report you did say august was going quite well did it finish as well? and how's september? >> yeah. so, august did finish well we knew the spring -- excuse me, we knew the fall would get better because the summer tends to be a little slower. people are noticing rates are coming down. we have a 6.25% rate today it wasn't that long ago it was 7.25%. >> that's meaningful for your business. >> if we can get that rate into the 5s, that's where it feels like it's headed if we have three cuts in the fall, we should have a 30-year fixed note no mortgage points in the 5 and look out, look out. >> means what? >> it will take off. builders have done so well with high rates we've been sitting on 7% to 8% rates now for the last two years. finally they're in the low 6s with a feeling that they're going to get lower and that's

when the builders sell more houses the affordability, you know, all changes. >> that's been the surprising thing about this entire cycle, i think, as we sat here every day watching your stock, at some point hit new highs. we're like, wait a second, rates are 7.5% were you surprised as well again, obviously, it had to do with overall supply. analysts say, it's time to buy the builders because rates are coming down. >> sh that owned a home was sitting on 3% or 4% mortgage rate you bought it at that rate or refi'd into it and you felt locked in. you wanted to move up. wanted your family to move into the bigger home but you were locked into the rate because you can't transfer it. resell markets were tight and everybody gravitated to new homes because we had them. historically 10% to 13% of inventory in this country is new. today it's over 30% there's 4 million transactions a day

a normal market is 6 million it's going to be a bigger pie. do we have a modestly smaller part of a bigger pie because retail markets open up a bit yes. we're a build-up mover we need a healthy resell market that drives people to move up into our homes we are celebrating the beginning of rate drops. as well as we did with high rates, it should get even better as rates come down. >> isn't there also the reverse happening where you have boomers looking to downside into smaller homes? >> 70 million boomers. 70 million millenials. they're both moving. we have those homes for them where do you think the resale inventory is going to unlock the most texas, florida story or go beyond that? >> it goes everywhere because the concept of i don't want to give up this low rate is a concept for everybody. but i think in florida you'll see more inventory come on, we're beginning to see a little more come on, it's not affecting our business

same thing in texas. but i think as rates drop, there's more people that are willing to give up that low rate because the new rate isn't all that high. by the way, they want to move on with their life. they want a new home new homes today built to today's lifestyle. the resale homes on the market are over 40 years old. they're tired, they're banged up you can renovate them, but you're not going to get the home that looks like today's home with indoor/outdoor living and home offices, and open spaces and energy efficiency. so, there's never been a bigger difference between a used home and a new home in terms of quality functionality features even as that resell market opens up and there's a little more competition there, i think the new homes are going to shine. >> doug, solve this conundrum for me you've been since 2010 ceo last six years you went from 154 million shares down to 104 million shares you've been buying back -- you

bought back $470 million this year in stock. at what point do you say, you know what, we must build more homes, we'll make more money building more homes than we do from buying back stock. >> jim, we're not trading land for stock buyback. we're now buying land and the industry is much more capital efficiently where we're not writing the big check to the farmer and then waiting four, five years for all those homes to deliver while we're sitting on cash and we're sitting on land that we can't put into production we have figured out ways as an industry to land bank our land where third-parties buy the land for us and feed us finished lots back when we need them we're doing joint ventures with builders, so i don't sit in the office and say, i love this land deal for $50 million but maybe we should buy stock back it's not a trade we can grow this company as quickly as we can find good land and still have enough free cash flow to continue to aggressively buy stock back. >> tell me what it means to have

54% of your houses being done on spec >> big change for the company. covid really focused on that where as resell markets tightened up and you had people that wanted to move for quickly than waiting a year for build to order, there was a void there that needed to be filled and so, yes, we are now building half of our homes as spec. understand, we define spec as a foundation we sell a third of them as they're in the early stages of construction, a third halfway through construction and a third at the end if you buy in the beginning or the middle, you can still go to our design studios and you can customize the home to your lifestyle. we have decorators that are picking all the finishes of these spec homes so, we're not just throwing them out there. these are curated million dollar homes that have just shortened the time frame for delivery but still give the client choice

>> when i listen to the debate last night, there's a lot of talk about what to do with middle class i think we all know, it's important -- maybe most important thing for the nation to have a big middle class i want to tell you, when i read your conference calls, i've always struck, and i don't mean to be crass about this, but how many rich people there really are in this country. where did they come from >> there's a lot of wealth that's been generated. but with the change i describe to our company, we build houses today from $350 to $5 million. 40% of our homes are first-time homes to that 35-year-old couple that they're making $150,000 to $200,000 as a couple even at today's rate, they can afford a $700, $800,000 house. plus, the biggest wealth transition in this country kids inherit a first home. i want to help with a down

payment, ease the amount of mortgage that generational wealth transfer is having a huge impact on that first-time buyer. >> do we not talk enough about that you are a breath of fresh air. this is in our wheelhouse. this is the generational transfer we should be talking about more because it's playing out well in your business. >> we talk about it with the number of 401(k) millionaires and fidelity, and yardeni brings it up all the time. >> it's a message of hope. you have from the time i met you basically talked about something i thought was not possible, which is that over time, the house would come back. in 2010 we didn't know if house was a good investment. it turns out it was the best investment. >> you know what covid did, it made people appreciate their home more than ever. we had a marketing campaign through covid, my home is my sanctuary, there's no place like home people were moving to where they wanted to live they knew they were spending more time in the house it brought back this sense of

the american dream, homeownership, what goes into that house, and it was profound. it's a soft fact but it's one that really resonated with our clients. >> really quick, though, jim mentions the debate. are policies like down payment assistance, do they have as much kick if, in fact, inventory and loosening up and rates are coming down? >> we support any policy that encourages homeownership and we support any policy that will get more houses built. incrementally any of those things we think will have, you know, small impact but they help, no doubt about it. >> what about owners equivalent rent, when is that going to finally come down? >> that's a tougher one. >> people are estimating what they would rent their home for and it remains stubbornly high. >> it does. >> i want to thank doug yearley of toll brothers we miss bob toll what a great man he was. >> two years next month he passed away. we were just here. he rang this bell twice with me

over the last ten years and there was no one like bob toll. >> regular guy used to see my dad and call him mr. cramer he was that kind of guy. >> yes, he was. >> we all loved him. >> thank you so much, doug. >> thanks. a red open dow down 440. 440. jim vix still not down, still above 19. >> yeah. look, i think these declines have been met with advances the next day don't sell into the decline. we've had this very strange pattern where the next day we undo the previous day. >> you wrote solar remains an interesting dynamic. >> look, i think there was a moment when president trump talked about how solar was an eyesore and bad then he said he favored solar. >> that was funny. solar is blah blah blah, but i'm

supportive. >> that was a moment for me. i didn't know if he liked it or not. jim mentioned rates. we did get the two year down to 355, although up a little bit now after the core print on cpi was a little warm. you got the long bond still below with a three handle. stay with us

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jim what's on mad today? >> we'll explain gamestop what the opportunity is, the peril is, and there's still plenty of people want to know about gamestop left over from the era where it went to 400 it was not a great place to buy but they made money. >> they have 4.2 billion in cash and they're going to raise more with the stock sale. your point is a valid one in the

sense you're almost buying a spac in the sense you're buying whatever the opportunity is. >> he needs to get out of leases and they cost money. we have a good analysis. don't look at the averages because they're distorted. look at nvidia, look at amd. that's what was bad and that's good and oil sold to you -- >> sold to you >> jensen huang today. >> it's been a while since we heard the most recent -- >> see you tonight, jim. when we come back lael brainard is here

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investment objectives, risks, charges, expenses and more in prospectus at invesco.com welcome to another hour of "squawk on the street. i'm sara eisen with carl quintanilla and david faber. live as always from post nine of

the new york stockexchange we are looking at a live shot of the 9/11 memorial in lower manhattan where on this day 23 years ago and in a moment we'll observe another moment of silence, 9:59, the south tower at the world trade center fell the s&p down almost three quarters of 1% let's join the moment of silence right now as we remember [ bell tolling ]

and my grandfather, richard j. o'connor. we will always love and miss you. [ applause ] >> timothy paul gilbert. just a few blocks away from here, always a somber day at the new york stock exchange so many streets are closed right around us as we saw former mayor bloomberg, senator schumer, president trump, kamala harris all here to mark 23 years, which is hard to believe since 9/11. art usually joins us on set because he was there for so many moments. it's unbelievable to think and

also the revietle zaigs downtown with the beautiful memorial and everything that's happened since. we have another moment of silence coming closer to the bottom of the hour when the next tower fell as we continue to remember as everyone in america does today in the meantime getting back to the markets obviously the s&p 500 is lower, we action to, in part, the cpi number which if you look under the hood in the core number on inflation, the market volunvoluclearly still pays attention, came in hotter than expected technology is the only sector higher right now in the market but let's talk about the inflation number overall, the headline was not too bad. 2.5% is low, it was a step down from 2.9% we got the prior month. again, it's core it's core rounded which is what we're doing lately and that was .3% that's if you strip out the volatile food and energy and we know the fed pays attention to

that one of the culprits was shelter, which is .5% on the month. >> that's owner's equivalent rent, right? >> that's part of it. >> it's owner's equivalent rent and first-time housing >> right. >> you don't want to see that go up that's the shelter up .5%. >> it never goes down. >> most people say it lags because there are so many other indicators we watch where rental prices are coming down and where house pricesare coming down. >> that's why there's an expectation it's going to start to give and it hasn't. >> and it has influence on cpi, about a third of the overall index. there are all sorts of reasons that maybe the fed shouldn't be only targeting that. as i showed there, the apparel prices ticked up on the month, air fares after a few months of coming down, ticked up transportation services, air fare is in that but also the car insurance rates are still -- >> incredibly high.

>> -- crazy high energy down, that's good overall it jibes with the recent trend that inflation is not necessarily bubbling back up again and that, you know, things are coming down from the high levels where we were but if you were going into today thinking the fed is going to cut 50 next week, you probably are thinking no reason to do that, probably cut 25. you didn't get it from the cpi report, the jobs report last week, that there's any urgency to go bigger on the rate cut next week. that's what the market is reflecting and bonds perhaps got overly exciting. >> j.p. morgan points out the growth scare in august was eased with the retail sales numbers and that's the next thing on the plate to see if this growth scare can be dealt with this way. >> if you raise the beige book, you think the consumer is going into recession listen to some sof these earnings reports, everything is

fine with the consumer, if you listen to others, the consumer is weak. yesterday i was at this banking conference. >> i know you're going to have stuff on the consumer. all these stocks are down again, you were at the conference yesterday, doug pinto sent j.p. morgan's shares down with comments about trading and investment banking that were not what investors had anticipated i'm curious what else you were picking up, obviously the consumer is also a concern ally financial things of that nature, in terms of declining credit quality. >> that's what i wanted to pick up on, allied warned that de delinquencies were worse than expected on auto loans so i asked brian moynihan what's going on with the consumer, and you might be pleasantly surprised to hear what he had to say. >> the consumer is not getting worse -- >> ally financial this morning at the conference warned that

auto and car delinquencies were worse than expected. >> we're seeing them come out if we thought they came out and basic delinquencies going back to where they were more or less in '19 >> so not getting worse. actually stabilized and barclays with a big u.s. consumer bank as well, here's what the ceo said about the consumer. >> we still see good numbers in terms of impairment in our cards business we anticipated some of the rise -- modest rise in unemployment and the inflationary pressures so we managed our book in advance, reasonably well but i i do think there are signs of softening and you have to be attentive to it. we have a higher quality book and so i'm happy with the results we've seen so far. >> both of those ceos suggesting it's not terrible. brian moynihan pushed back on the stagflation idea that jamie

dimon brought up yesterday. >> he's done that in the past. we obviously featured jamie dimon yesterday in terms of making comments about you never know we could see inflation rear back up, although no real signs that he's been right so far. i'm curious, though, as we watch the bank stocks really retreat yet again this morning, you know, bank of america by the way, warren buffett keeps selling the stock as well. i don't know if moynihan has any thoughts on that. >> he basically said at the conference he hasn't spoken to him ant that i think the market is also trying to figure out what the new rate environment and outlook is going to be for profitability. the nii which is so key, clearly there's an adjustment as the fed is looking to cut rates. i think the pinto comment from j.p. morgan that rates are too high really started to sink in a little bit

so lower expectations across the board. for the most part though the tone of the bankers i talked to was not that bad, in reaction to the consumer or basal three, they would prefer no increases but 9% is better than 19%. >> it is mike mayo at least said there were expectations it would come down lower and that was one reason the stocks were down. >> we'll see. >> regardless of the reason whether it was the j.p. morgan comments or any other number of things that sector is getting hit. we should point out as well. the overall market there are reactions to yesterday's debate going on solar related stocks, for example, are higher. so it may be investors saying, well, harris may have enhanced her chances of winning i would also note broadly speaking to the extent corporate taxes go up under a harris administration, you may see that play out a bit in the market. >> we saw futures lower after

the debate after all let's get the reaction from the white house about the cpi report lael brainard joins us now first on cnbc. welcome back, nice to see you. >> nice to be here. are you worried at all about the tick up we saw in the key measures, the core inflation, super core inflation shelter inflation? it's supposed to be going the other way. >> i have to say what i took away from today's report is that inflation is back down 2.5%, that's very close to the level we saw right before the pandemic started i think with inflation coming back down now the focus has to be on sustaining gains in the labor market you know, if you look at the labor market, we have seen high levels of working age participation in employment. and just yesterday we saw data saying that median income had gone up after inflation by

$3,000 over the previous year and it's up since the beginning of the president's term. that's important for resilient consumers and continuing to see the kind of sustainable growth so i take away from today's data that we're turning the page on inflation. inflation is back down >> what about the warning that we did get from jamie dimon yesterday that there's been so much government spending and still yet to kick in, things like infrastructure and inflation reduction act, that will keep prices elevated? we're also seeing higher wage growth, by the way, real wage growth and that's also something that could theoretically keep prices high, couldn't it >> so i just really see inflation coming down. it's true that real wages are improving, but it's also true that productivity is improving so if you look at the investments we're making in infrastructure, those have been

years lagging. the last administration said they were going to make it infrastructure week. every week they never made any inves investments. so those kind of infrastructure investments, high speed internet, rail, those kinds of investments plus the developments we're seeing in areas like semiconductors with the chips act. clean energy, really important transition going on there as well as areas like a.i., seeing a productivity boost that is sustaining those real wage increases. and that's the kind of sustained expansion that's going to create foundations for future prosperity and competitiveness in this country. >> speaking of rehabiates you lt the break evens. and there's a danger that it might be undershooting the fed's target, "reuters" yesterday, bloomberg today, is that folded into your discussions? >> of course i don't want to

speak to the federal reserve's target but i will say with inflation getting back down close to the levels that you saw prepandemic, i think it is a good time to be focused on sustaining that labor market and obviously, as you said i think earlier, it's really housing that is continuing to be sticky housing is actually an area where we are going to need to see a better market rate environment in order to really start making a dent in the supply that we need. and, of course, the president and vice president they have been pushing for a plan to build millions of additional affordable units and that is what's going to be necessary to really get those housing affordability pressures to ease. >> why haven't the higher interest rates done the job? that was -- it was supposed to target housing

>> so i think what you're looking at in the housing area is an actual gap in the number of available housing units and that's why you're seeing particularly in the rental area that rents are higher because the supply of affordable housing just hasn't kept up with the demand i think you need congressional republicans to stop blocking low income housing tax credits and actually come together with congressional democrats to support those tax credits, you know, just a few months ago they blocked what would have led to 200,000 new affordable units that would have been a nice down payment. we need to come together to support more houses. more housing affordability >> how do you react to the markets lower today on the higher inflation and potentially on vice president harris' odds

increasing in the market after the debate last night and wondering what a higher corporate tax rate might mean for corporate earnings zband growth at a time when job growth is slowing and consumers are softening. >> i think what you're seeing more broadly is a contrasting vision and if you think about it, you know, what is the congressional republican plan, you know, a return to tariffs, a massive increase in tax cuts for the wealthy and for the largest corporations that will blow up the deficit and debt by 5 trillion on some estimates, $10 trillion versus a vision which is really about lifting the middle class which is really about making the cost of living more affordable by addressing things like health care costs, housing costs, and -- which is

really about giving middle class taxpayers a tax cut and making sure that we pay for that by asking the wealthiest people, the largest, most profitable corporations to pay their fair share so we can keep our national debt in check >> we don't seem to be very good at keeping our national debt in check right now. still running enormous deficits, talking about interest payments even with rates coming down, potentially exceeding defense outlays. how concerned are you about that >> look, i think we have seen a one trillion reduction in the deficit, the president signed the fiscal responsibility act into law and the president and vice president have been clear about how they plan to pay for middle class tax cuts, a child care tax credit, which we know is an invest

investment in our nation's future by having a fairer tax system so that is an approach that actually would be much more fiscally responsible than blowing up the national debt by 5 to $10 trillion to pay for more tax cuts for people that really are at the very highest end of the income spectrum and it's really important to be able to make those tax cuts for the middle class available while paying for them by asking for the wealthiest to pay their fair share. >> can i just come back real quick to something in the interview before we wrap up, which is the productivity increases you cited. do you have line of sight to productivity increases coming from high speed internet or faster trains or is that a general view on your part? >> i think the numbers are clear, productivity has

increased. you saw it in the second quarter again, 3% expansion at a time when inflation is continuing to come down to normal levels that's a really nice set of developments it does suggest that the productivity data, which we've seen going up, that there's some good developments that are going to enable the investments that businesses are making today in many cases supported by clean energy tax credits or the chips in science act absolutely i think the data that we're seeing suggests that advancing leading edge semiconductor manufacturing in this country is going to put us in a position to be the most competitive economy in the world, to support the most dynamic a.i. investments in the world and puts us on a firm foundation to support the middle class. grow opportunity into the future

>> lael brainard thank you for joining us we appreciate it on reaction to cpi and some of the economic policies from the white house this morning. >> thank you. let's get to the markets this morning and get reaction to the inflation print. joining us is ed yardeny good to see you again. >> thank you good morning >> you wrote about expected chop in september, china last night, but does the core cpi print should it be considered a threat to the doves >> i think to the extent there was some heightened expectations that would be a 50 basis points cut in the fed's fund rate next week which would be the ultra dovish position, i think that's off the table now and you're likely to see 25 basis points. i shouldn't say it's off the table. i don't know what the thinking of the fed is, other than they've certainly pivoted away from being concerned about inflation to being more concerned about keeping the

unemployment rate down but the data today was pretty good take out rent and the headline inflation rate was 1.2%. we've been talking about getting to this level for a few years. we thought it would come down. so things are going right on inflation and i think the surprise is going to be that the economy is more resilient than people are thinking. >> if that's true, what did you make of the bank commentary yesterday? did that move the conversation meaningfully >> carl, i only listen to what supported my story and the fellow from bank of america, brian moynihan, certainly was very positive on that jamie dimon has been kind of pessimistic about the outlook since may of 2022, he's been a long-time pessimist but you can't really generalize about the consumer we have consumers that are struggling, maybe maxed out on their credit cards but we have plenty of other consumers,

particularly the baby boomers, say there's 78 million of them that have 78 trillion of assets a lot of them are retiring and they're spending money they don't have mortgages. don't have to pay for college education. so i think it's a mixed story on the consumer the atlanta fed estimate for consumption during the third quarter, real consumption is 3.5% that's gang busters. >> i'm thinking about what you have written about, the transfer of wealth, the productivity we're making and the export of deflation out of china, shouldn't those be considered positives for the u.s. economy >> absolutely. i think the u.s. economy is the big winner here. you know, when the fed started to raise interest rates from 2022 through 2023, it was logical to believe that tightening of monetary policy

would cause a recession. and the reality is, there was a recession. it just happened to be in china. they have a property depression and they're exporting deflation that's one of the reasons the cpi inflation rate has come down so rapidly because durable goods, we operate a lot in that regard that's come down to deflation again. so absolutely, all those things are good for the economy and positive for the stock market. >> ed, did you read the beige book more districts contracting also it does jibe with some of the recent commentary. i was looking at dave and busters today. not necessarily that's the most indicative of the economy. but tough consumer environment, many others are feeling the pressure petco cfo, choiceful and value if you listen to companies and look at the an nicecdotes it's of weakness and softness on the

part of the consumer. >> all true and good points but it seems the survey data is more pessimistic than the actual data it's the actual data that matters. the real gdp is running 2.5% during the current quarter and that's even with july affected by the weather the run rate is 3.5% in the third quarter. so i think that for some reason the surveys are picking up a more pessimistic tone than the data is reflecting initial plans remain low everybody kind of got bummed out by the payroll employment report for august but, actually, the work week rose and so aggregate hours worked as an all-time record high and i think retail sales are going to surprise to the upside as will personal income because not only did we have more people working in aggregate in terms of hours, we also had a nice increase in wages

and to the point you made, sara, about real wages they're up and lael brainard was correct in saying that can only happen with productivity doing well. >> we'll see what retail sales brings us, ed. interesting to get your forecast on that and hopefully talk around that. good to see you. >> thank you. the vice president and former president faced off in the fiery debate last night. amon jafers joins us with comments around the economy and the deficit. >> that's right. i want to start with this morning after the rhetoric and name calling we saw a moment of bipartisan grace this morning at the 9/11 memorial event between vice president harris and donald trump. you see another hand shake there between the two candidates, that's the second time they have shaken hands the first time, of course, was last night at the debate where things were much more fiery. the big portion of the debate on the economy came first, early

on you see this is the firsthand shake between the two candidates on stage last night. vice president harris presented herself as the change candidate generationally and politically here's what she said. >> it's important we move forward we turn the page on this same old tired rhetoric and address the needs of the american people. address what we need to do about the housing shortage, which i have a plan for. address what we must do to support our small businesses address bringing down the price of groceries >> and for his part, donald trump defended his proposal to add tariffs across the economy saying tariffs will ultimately be good for the economy and won't cause inflation. here's what he said. >> they're not going to have higher prices. who's going to have higher prices is china and all the countries that have been ripping us off for years i was the only president ever,

china was paying us hundreds of billions of dollars and so were other countries. and if she doesn't like them they should have gone out and immediately cut the tariffs but those tariffs are there three and a half years now under their administration >> now of course china wasn't paying those tariffs, american companies that import products from china were the ones paying the tariffs. but the former president there on his strongest footing attacking kamala harris for saying if she was so against tariffs why has the biden administration allowed the tariffs to stay in place also arguing at the very end of the debate in probably his strongest moment if kamala harris has these ideas about the economy, she's been in power for three and a half years why hasn't she done any of that stuff yet. >> kamala harris invoked goldman sachs in the report about saying the harris economy would be better than the trump economy. we talked to the chief economist

of goldman sachs on friday and got a little more information about the report just listen to what he said about it. >> the main take away is that the differences are actually relatively small if you go back to the last couple of presidential elections, they have big macro impacts. the trump tax cuts post 2016 election, the biden stimulus, post 2020 election, relative to that these numbers are relatively small, talking .2% one way or the other so i would say this is not very large. now we don't know, there's also a lot of uncertainty about what actually is implemented. our working assumption on tariffs specifically which is one of the most important parts of it, there will be china tariffs and they'll be sizable but our best guess across the

board, $10% tariffs -- >> i don't know maybe overplayed on the goldman, more bullish on kamala harris' economy >> yeah. i can tell you, though, that the trump campaign is frustrated with goldman sachs on a conference call with reporters last week, some of the trump economic team said that goldman sachs' economic team is a bunch of liberals. they put out these reports every cycle. the trump economic team arguing that, you know, goldman sachs has been wrong in the past on this and really teeing off on goldman's analysts there saying you can look at their campaign contributions and see they're a bunch of liberals. so real tension between the trump campaign and gld oldman ss right now. >> we're looking at a market that's down, the s&p down 1.3% perhaps in part because harris seemed to enhance her opportunity to gain the presidency and therefore a

higher corporate tax rate. do we have a full plan from her when it comes to taxes i know we talked about perhaps a lower rate than biden has proposed but what are we looking at there? >> there's a couple of things. the one piece she was talking about last night was this idea of incentivizing business owners, small business owners a $50,000 credit for small business folks and talking about incentivizing home buyers as well with $25,000 assistance for first time home buyers and she's dialing back, i would say, some of joe biden's proposals on taxes on capital gains. so this is a candidate who's trying to find the center and looking at prices and homes as sort of the areas where people are most concerned about the economy. >> that's certainly been the discussion the last couple of weeks, that balance between listening to voters and trying to find policies that resonate with voters and doing the same thing with your donors who are

clearly pressuring her to move to the center at least as it pertains to corporate and capital gains taxes. a lot to tdigest you're looking at a live shot of the 9/11 memorial. where on this day and this minute, the north tower fell 23 years ago. let's join the moment of silence. [ bell ringing ]

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on the louisiana coast between 4:00 and 8:00 this evening the storm could dump up to a foot of rain and bring a "street signs" -- bring a storm surge of between 5 to 10 feet louisiana and mississippi have already declared a state of emergency ahead of its arrival california has secured federal assistance to fight the airport fire in orange county one of three burning in the state right now that have burned more than 100,000 acres of land combined the grand from fema will allow agencies to apply for 75% reimbursement of fire fighting costs. and the nfl averaged 21 million viewers per game during the league's opening week. that makes it the most watched week on record the league o'and neilson say is

the ravens and bangles had the most viewers it's a lot of viewers. back to you. >> that probably had the most female viewership as well. i'm going to guess we're watching a selloff on wall street it's intensifying. groups are getting hit like financials down 2.5% and industrials down 2.25% seeing more than 1% declines now across the board the s&p down 1.5%. energy continues the declines as well worst performing sector on the week, month and year let's get todom chu? >> it has to be crude oil prices and the diminishing outlook for demand, also supply concerns all weighing in on that. if you take a look at the price of u.s. benchmark intermediate we're seeing some of the lowest levels going back to a two year chart you have to go back to may

last year so over a year in terms of the overall impact on the lowest levels of u.s. benchmark prices if you look at the sector j overall, the energy sector, in addition to being the worst performing sector on the year, as of this moment it's the only sector in the entire s&p 500 that's negative on a year to date basis but compare that to the 20% rise in technology you can see where energy falls in the grand scheme and below the 50 and 200 day moving averages, the medium and longer term trend lines. the stocks that are the laggards check out names like petroleum, down 21% on that basis over the last year. halliburton down 33% and even majors, the big ones down 17% for chevron. those names among the biggest laggards it's not all negative.

if you look at the pipeline and logistics operators, you see pipeline operators seeing moves up and to the right. keep an eye on that. pipelines and natural gas seem to be outperformers in the energy trade back to you. >> plenty of sectors here, they're all red, down 2% or more including the banks, industrials, materials, vix back to 21, dow down 700 and yields have turned red across the rvr tethe break, more on stocks to watch and cpi after the august print hitting the lowest level since 2021 don't go away. the future is not just going to happen. you have to make it.

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big selloff here on wall street the s&p down 1.5%.

the nasdaq down 1% which is fairing better but every sector has gone in the red this hour. the selloffs picked up steam carl mentioned this ahead of the break but interesting actions in treasuries where bonds sold off as a result of the cpi report, the focus on the hotter core number, core cpi more elevated than expected at .3%, gaining in the month of august, the super core number picked up as well. the shelter prices were hotter than expect at .5% there's buying with yields lower, with a trend on what's generally been weaker economic data and the stocks decline and bonds gain on the safe haven, lower growth concern. >> that would not be sparked typically by a cpi number we got this morning. >> no, not by a firmer cpi report maybe there's something else in

the mix we've been talking about the reaction to the debate. >> yes. >> worried about higher corporate taxes? >> the weakness is not centered in megacap tech. oracle shares have continued a rally from yesterday's big move after earnings and nvidia shares are up as well ever so slightly but the real weakness seems to be more sarah as we discussed in the big banks. >> cyclicals, industrials, energy, materials, crude oil is firmer but $66 a barrel it's weak and people see that as a growth indicator. what is that telling us about the prospect. >> you have inventories that were squirrely this week and a hurricane is making landfall in louisiana today. let's get to steve liesman with more on what it means for the fed and the path of rate cuts. >> yeah, this morning the report is not a done deal but solidifies that the fed is likely to cut 25 not 50.

but the market continues to price in rate cuts through the year end and the course of the next few months. look at september, chance of 25 rising to 85% after the cpi this morning up from 71% this morning while the probability of 50 falling in half. tomorrow's ppi could have a bearing on what the fed does next week and there are still some who think the fed will or ought to do 50 but the wholesale price report has to be weak for that to happen headline report is 202 from what it was core cpi, a tick higher. sara mentioned the supercore being hotter and the rents that won't come down despite predictions they will. year over year, 2.5% and 3, 2, 3, 2 after a 25 cut in september, markets priced in a 72% chance

of a 50 in november so the fed is seen getting more aggressive, followed by 65% probability of another 25 in december you need to know the market is consistent looking for a full percentage point decline in the fed funds rate by year end let's go out further looking at a year from now, the market has almost 250 basis points of cuts built in, bringing the funds rate down now below 3% a 2 handle on it, 291 or around the fed's nominal estimate maybe lower. all of this makes the guidance from the fed next week the more important part we need to understand if the fed welcomes the amount of easing built in over these time periods next year when the market is right. that means for the fed to move quickly to neutral, guys so this is an interesting moment here where we're listening not just what they do 25, 50 but the guidance whether the aggressive pricing of the market is right.

>> anything to worry about the hotter reads we got about inflation, the air fares, apparel ticked up, obviously transportation costs are still an issue, shelter you mentioned, problematic. is there anything in there with jamie dimon uttering the word stagflation it's top of mind and the market would hate that combo of slow growth and sticky inflation. >> that's right. a quick word on air fare it's instructive with what we've been going through with the data. there was a piece about that saying the air fares are seasonably adjusted upward because what happened in the prior three years of the pandemic and people came out, summertime came around, they lifted the travel restrictions, people started to fly, air fares went up, the last three years we had the summertime seasonal adjustment upwards in rates or

air fares. that's not really the normal course of things i don't think sara so the reason i bring it up, there's a lot of stuff from the pandemic being seasonably adjusted and makes it hard to figure out what's going on i'm not worried about the air fare thing i don't understand the rents, they should be coming down almost the private sector data we've seen suggest there should be some relief in that i think the fed is going to look through it the first bit of cuts i think you understand are about the prior cut in inflation it's maybe the idea a year out the fed sees 3%. and there's something between the market and the funds that bears some explaining. >> dow is down 700 points. all 30 dow members are lower united shaving the most off, about 100 points cater caterpillar, home depot at the

bottom of the list check out the s&p names still in the green this morning amid a broadening and deepening selloff. we have the solar names in the green as david mentioned earlier on improved prospects in the betting market we're sisiing today of a kamala harris win in the presidential election. back in a moment for all your skins, gold bond. ok, here is your paperwork, if you want to review it and make sure everything's in order. these factory floormats, are they really as good as weathertech? you know, laser measured? [suspenseful music] no. nothing comes even close to laser measured weathertech floorliners. they offer the ultimate protection. front, back and even up the sides. for a full line of premium american made products order at wt.com nothing protects like weathertech. i can't believe you corporate types are still calling each other rock stars. you're a rock star.

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after this morning's mixed consumer inflation report one trade zero looking aseint llg treasury futures to hedge actions by the fed find out why he's doing it and how he's doing it. tune in to our market navigator segment today on "power lunch," 2:00 p.m. eastern time 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.

your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. our advanced matching helps find talented candidates, so you can connect with them fast. visit indeed.com/hire the markets are adding losses this morning, bob pisani is here at post nine, everything is moving. >> yes the bulls cannot make any case we're at a bottom right now. that's a problem for the bull's.

the bears haven't proven the case there's an imminent slow down than the data we're seeing. they haven't proven it so we're in a stealemate. look at the bank stocks. we saw it with the ally warnings yesterday, rates coming down, banks are making less money on net interest income. there's a fundamental reason the banks want to be down. and there's no improvement in m&a, ipos we're waiteding where are the ipos coming we hear nothing about them and the banks involved in capital markets that's also an issue so three issues on the financial. some weakness in the financials make some sense here also if you look at the energy stocks a lot of new lows out there. most of the new lows are energy

stocks, occidental, chevron, exxon, i could go on and now and again, we're looking at oil near a three-year low. g g nat gas, not a new low, but not going anywhere there you have two that are out there with some fundamental issues around them, with financials, banks, and energy, with some fundamental issues but holding up, look at the rest of the market, we go into these defensive names. walmart has been a great holdout, recently. travelers, the insurance names have been great. most of the insurance names like procter & gamble have been doing better mcdonald's is holding up fairly well, down today johnson and johnson, coca-cola, you go through the whole

consumer staples list, and you're doing okay. again, the bear case, the bears keep pressing it the bears have the rhetorical upper hand their argument right now is the fed waited too long. we want 50 basis points. that's what we want. and they're disappointed when the evidence is, they're not going to get a 50-basis point cut. they're going to get 25. and so, remember, the fed, they questioned the fed-put that's what they want. they want to go in and say, the fed is going to get really aggressive they'll come in and save us and do 50 basis points and when that calls into doubt, the bears get very disappointed. the bears have been wrong for two years. personally, i think there's a good reason to stay at 25 basis points, but the bears want everything to keep things going. they want to keep going, and they want some evidence that the fed will be very, very aggressive they don't have it right now there's a little bit of disappointment, the seasonality, the high valuations, and some fundamental issues around the

banks and energy stocks. good reason to see a little bit of weakness in the middle of september. we just hope september gets over quicker. can we move this up a little bit? >> the same amount of days every year, bob. >> why don't we go into some science fiction time warp, and let's go right ahead to september 30th >> is october a good month >> the last part of september is usually the bad part >> the worst part of the entire year not just going into september -- they were passing these things around for weeks, prior to september. last two weeks of september, worst two weeks of the trading year so let's just fast forward let's get into a time warp, get into october >> i want to go somewhere else if i'm getting in a time warp. yo i don't want to go to the end of the month. >> how about i meet you on a beach on thanksgiving. >> maybe a hundred years in the future to see if we're all still here >> yeah, no. the avatars of us that will still be here. >> thank you, bob. coming up next hour, former president donald trump's former nec director and former goldman

sachs president gary cohn in us on the hot krcpi data today jenison wang just wrapping up a fireside chat. the key takeaways after the break. don't go anywhere. and services businesses, deliver global financial solutions. so our client can keep investing in innovations for patients around the world. without pause. for the love of moving our clients forward. for the love of progress. you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. boring makes vacations happen, early retirements possible, and startups start up. because it's smart, dependable, and steady. all words you want from your bank. for nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled... which is pretty un-boring

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nvidia shares have been holding steady, as you see, despite a broader sell-off in the markets. ceo jenson wong speaking this morning. >> nvidia ceo jenson wong making the case for accelerated computing and the important role nvidia is helping to run faster models and data centers. and he's defending the price of the company's servers. >> nvidia servers look expensive, and it could be a couple of million dollars per rack, but it replaces thousands of nodes the amazing thing is, just the ka cables of connecting old general purpose computing systems costs more than replacing all of those into one rack. >> those comments made at goldman sachs' communicopia conference, and then david solman, who's moderating this conversation, asked the crucial question on the return of investment on ai huang says it's creating cost reductions and productivity

gains for companies by using nvidia's cpus, they're reducing computing times by about 20 times, and gen aai is still in the first wave every dollar they spend with us translates into $5 of rentals. and training and using app ai models will be a benefit for the company. shares are higher, but off the highs of the day >> one of the new names, in fact, is hire, in a general market that's down 1.5% in the s&p. megacap tech not the leader in terms of declines this morning a lot more coverage of these market moves right after this. e. vanguard personal advisor can help you prepare for every chapter. we got this. that's the value of ownership. 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 -

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(slurp) good wednesday morning welcome to "money movers." i'm carl quintanilla with sara eisen live at post nine of the new york stock exchange. right now the streets trying make some sense of the latest inflation read the stocks making a big move lower. the dow briefly dips below 40k for the first time in about a month. >> president trump's former nec director gary cohn is here with his reaction