got to send it over to joe >> okay, andrew, thanks. we'll get a final check on the -- don't have a lot of time now. we have moderated a little after that ppi number. we're down now, the nasdaq, actually in the negative the dow jones, just barely up. okay you're here tomorrow, andrew we will see you. welcome you back and you'll be here we'll all be here. join us. "squawk on the street" is next ♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at post known of the new york stock exchange premarket is trying to build on wednesday's big upside reversal. ecv cuts rates for the second time in three months ppi prints in line claims are steady. adobe tonight. our road map begins with those fed expectations, though keeps investor hopes alive the fed will start cutting rates

next week. plus the nvidia effect is back shares bounced again ahead of the open they're bouncing after helping fuel that big comeback yesterday. it was the biggest we've seen for stocks in two years. norfolk southern fired its ceo this afternoon after an alleged affair with the company's top-ranking lawyer let's begin with the markets, ppi, and of course, yesterday's volatile session, jim, up more than 2% from the intraday lows. >> when you time the 2%, yes indeed, it does have to do with jensen huang, the ceo of nvidia, talking about what the truth is versus what people thought it was after they reported that quarter, really emphasizing demand to the point where you start realizing the level of demand is kind of unprecedented, this is for the blackwell super computer, not for the chip no longer a chip it's an infrastructure but what really made -- what stood out was the, without any name-calling, the collapse of intel as a company, basically. i'm going to put it like that.

he's saying, there's two components there's the gpu, accelerated computing, and then there's the wonderful generative a.i and the accelerating computing basis is moore's law, and that it's time to recognize that if you have cpus in your datacenter, you got to rip them all out and put in gpus. >> it was not just talking about nvidia, but it was also saying that, what does this actually mean is the implication for the likes of intel, which obviously has made its way to the datacenter, not to mention, of course, computers. >> exactly there's a lot of knuckle heads, david, who come in early in the morning and take nvidia up for no reason. it was up at $118.15 today and i want to know what those people do and why don't they just go back to sleep? >> the action yesterday was interesting, though, in that, jim, those comments, we had them, we featured them they didn't seem to resonate in some way >> at the time >> for quite some period of time, yeah and i wonder whether really we are attributing properly the fact or just who knows what it

really was most likely as anything but who knows? >> i like mike santoli's explanation. >> which was >> which was that rates started going up and that people actually liked that now, because they're worried about a recession. now, we could also argue, it's pin the tail on whatever you want, carl we're all struggling to figure out why a market can turn intraday, but this is not unusual behavior ahead of a rate cut, where there's always people who will doubt it and always people who want more of a rate cut and people who don't know what they're doing, so they trade like banshees, and you shouldn't. sit on your hands. don't buy nvidia at $118.50 and then sell at $116. >> nvidia up 13% for the week. it comes on the heels of the discussion at oracle and we do have an analyst meeting with oracle today >> well, this is where i expect them to raise numbers, perhaps substantially. the oracle narrative of 162 datacenters going from 1,000 to 2,000 was the beginning of this

move to be able to return to a group of stocks that had been considered suddenly pariahs. we had someone on our air talking about the bear market and nvidia it's up the most in the s&p this year, but holy cow, what a -- >> it's terrible, yeah rough. it's been rough. >> you're jensen huang, and jensen is sitting there saying, okay, on the one hand, people say i'm getting -- i've gotten a letter from the government, from the justice department the justice department, which is like, by the way, when you get the letter from the justice department, not good suboptimal when you get the justice department letter. but he didn't get the letter but then it turns out if he didn't get the letter, maybe he's not powerful. if he's not powerful, maybe numbers are too high who thinks of this stuff when you watch linear tv -- i read the piece on upgrading roku and no one watches linear tv i withdraw my objection. >> we know they do and they all tell me, no, we still watch. they're watching >> they watch roku how do you watch roku?

my father used to call me and say, can you come down and fix my roku? 37 times, i came down to fix my father's roku. what is that about >> we got 67 million watching the debate, so somewhere people are watching television. >> they're watching it on youtube. by the way, i watched it on youtube and i watched it on "new york times."com. youtube was about 60 seconds behind newyorktimes.com. >> since you transitioned us into this whole world of linear and streaming, i'm going to share some news this morning that is just hitting, but is important and involves two companies that we follow closely. one, of course, being warner bros. discovery, the other being charter communication, operates under the spectrum brand in both cable and wireless broadband they have a new carriage agreement hitting the wires and it is interesting because it fulfills the ambitions of both companies. you have warner bros. discovery, the stock of which had been

getting crushed in part because of the loss of the nba or the seeming loss of the nba. they're in court or they're trying to litigate to actually get part of the package back and said it was falsely or unjustly awarded to amazon. but the value of tnt has been at the center of that many have been saying, those who are negative on the company, of course, and overall on what we were just talking about, the decline of linear networks, say, when you re-up this thing, you're not going to get paid at all. they did a deal with charter a year earlier than they had to, and get this they're getting the same amount for tnt. now, they don't put the number in there. i hear it's around three bucks when you're the cable operator, you're just getting -- you're paying one big number to warner bros. discovery, to the programmer that number is going up under this new deal. how they apportion it at warner bros. discovery is up to them, but what i am hearing is that it's flat for tnt, up for everything else, and therefore,

this is a revenue-accelerator. revenue is growing under the new deal done a year early with charter. what does charter get? well, this expands on this strategy that has been embraced by its ceo, chris winfrey, to offer its subscribers as many of the streaming services you can, all in one place and so now, if you are a spectrum tv select customer, you're going to get ad-supported max, and by the way, you already get ad-supported disney and paramount plus you get amc, and you get the idea here. they're trying to say, it's all here in one place. you can take your streaming box, and it becomes a seamless experience and this is the strategy being pursued by chris winfrey at charter. it aligned with, of course, what was the desire on the part of david zaslav, who runs warner bros. discovery, to get an endorsement/affirmation from the value of his networks. and he seemingly has done that

and it's perhaps going to turn around warner bros. discovery, at least for a day, for a stock that really has been just getting crushed. >> david, this is shocking to me i thought for sure that zaz would take a hit on this >> many people did, and i think they're quite happy, in fact he will be presenting at communicopia later this morning. >> communicopia plus like disney plus >> the goldman-sachs conference is still going on, and i'm sure he'll be discussing that i'm hearing when it comes to warner bros. discovery, they did, what, $3.6 million in sub ads at max but i'm hearing they're running well above that. he may share that as well, perhaps as high as 6 or more million subs being added for the third quarter. it goes back to a conversation we have had at this desk for many years it's not as though the linear networks are not still in decline, but everybody trying to figure out a way to stem that decline to a certain extent, to -- and charter has its way

through spectrum in terms of offering all the streaming services in one place or as many as they can, ad-supported. they also will market the max non-ads to all of their broadband customers. you get discovery plus as part of this deal as well for the spectrum tv select so, they say, you know what we're offering you spectrum companies now? about $60 a month of retail direct to consumer value so, yeah, your number may look pretty high and what we're charging you, but in fact, within that is going to be 60 bucks if you were to go outside of our ecosystem and pay for these things directly. so, that's kind of what's going on there >> take away disney, take away comcast? >> what do you mean by that? >> i mean, like, this is valuation -- >> from a warner bros. discovery perspective, it says to comcast, we're not getting lower fees, so you most favored nation, but when you come up, you're going to have to pay us. >> how about a content site? or it just doesn't matter? >> i think it's helpful.

but disney did -- >> constructive, constructive. >> disney was the first to do this deal, if you remember, with charter a year ago they blakd out for a while they had their dispute and then resolved it by offering disney+ ad supported on the -- to spectrum customers this is yet under that same template, the latest iteration of that deal >> remember when you killed warner bros. discovery and you brought it back to life? >> there are a lot of continued questions about the company. there are any number of those who continue to be short the stock, looking at, of cbviously their leverage content spend has gone into max. that said, max is moves toward profitability and this is the back and forth we've talked about for years here in terms of these streaming companies becoming profitable and starting to take the lead as your linear cable networks decline >> now we're starting to get some discounts, discovery plus, new subs starting today, 80%

discount, 99 cents a month for three months >> that's right. this is a separate story >> and then there's disney 2 today, 199 that's going to be through december >> are they front-loading the idea that maybe there's a price increase you got to get in now? >> might be. >> i'm not kidding >> it might be why not, right and try to get those sub numbers up as much as you can. obviously, charter's not -- the number for charter in terms of the ad-supported max subs they're going to be able to offer now is not -- it's a wholesale number, you've got to imagine. why would you do the deal and move it forward a year if you weren't getting something out of it you can see charter shares responding nicely to this and we've still got disney and directv in a dispute as well, of course, but i did want to share that and share some of the background behind it because i think the context here becomes very important for shareholders to understand. i mean, you know, warner bros. discovery, it's been a rough road there are any number of investors who claim, well, split

the company, everything i hear indicates that while there you can put a team of lawyers on it and figure out all the ways they might do it, they don't want to take the risk, because they don't think they can >> you mentioned something i think our viewers have to know at home. you said in the short position i don't speak to a lot of people who are long it. >> no. >> they do believe it's fish in a barrel there's no such thing as fish in a barrel when you're up against david zaslav >> clever. >> yeah. yeah and this deal, obviously, you know, he's somebody who's done his share. in fact, that's how he started i remember him 30 years ago when i was starting out, and he was here doing our retransmission deals at cnbc. >> he looks younger than you >> i don't think that's true >> well, let's talk about what's real >> he had the turnaround hat at the u.s. open. that makes everybody look young. >> you tell your kids, never put your hat around, and then he shows up at the open with his hat around >> he's got a little goatee. just working it. >> doesn't make you cooler doesn't make you cooler. let me tell you that >> when we come back, we'll get

a closer look at norfolk southern's decision to oust ceo alan shaw. news out of cignet, kroger, lilly and more trying to build on yteesrday's reversal "squawk on the street" is back in a moment. tax smart investing today, helps to build a stronger tomorrow.

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railroad operator norfolk southern ousting alan shaw, out as ceo he's been replaced by cfo mark george investigation determined shaw violated company policies by engaging in a consensual relationship with the company's chief legal officer. jim, shares down about 1% premarket. >> they put in someone who is a non-operator at norfolk southern they didn't know this was coming so they weren't ready, but railroads are such that -- they're such a hot button, and david, i have been waiting for you to tell the story about the three activists.

>> they did. ankara put three people on the board. what the company would love you to know is that the independent directors, including all three that were appointed by ankara voted unanimously to elevate mr. george to the ceo role this was a company that was preparing for another proxy fight, potentially, and now, maybe, well, i don't know, jim i don't know what their thoughts are, but i would note that the independent directors elected by shareholders that they had presented did vote in favor of this elevation >> look, he was considered to be on east palestine, apparently, did a good job then, there were people who say, listen, it's not really -- as being the way to run a railroad. i felt his numbers were very good, but obviously, i also think that there's no room for the usual. >> they did reiterate guidance as well. >> yeah. >> well, that's good

union pacific has been weaker. carl, i think there's this perception, again, you get something in stronger that shows that the, you know, claims being stronger, and then you get railroad carloads and they're not that good, and again, i keep coming back to stop trading minutia. the fed is cutting stop analyzing every single piece of data about -- jay powell is not sitting there saying, well, look at that they revised down with so-and-so. he's got a view that it's time to be able to be less -- >> we're taking these monthly inflation prints out three decimals, jim. of course we're trading minutia. >> we're pathetic parodies of a the human mind there are some cyclical companies that are doing poorly. auto is doing poorly autos are really at the, i think, at the epicenter of what's weakened. >> we're going to get to the jonas note after the bell. i will note, though, speaking of transports and rails, alaska air raising guidance on the heels of jetblue's guidance >> yeah. >> that's going to open up four. >> i'm always suspicious of ever

recommending an airline since, as david knows, they've always been tragic in recommending. >> they don't end -- rarely ends well there was, you know, their cost of capital they never -- they're never able to sort of get past it >> carl's right. i saw it this morning. alaska air doing well? well, i mean, geez, jetblue, alaska air, next is going to be, what, that allegiance thing? >> yeah, maybe >> you ever say, i'm under the neon sign of the allegiance? >> maybe we should bring branf back >> fly eastern >> yeah. >> how about the light bulbs twa bonds? do you remember that >> maybe jim will cover it in his "mad dash. we'll get that and the opening bell after a short break don't go anywhere.

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you over the phone in a humana medicare advantage dual-eligible special needs plan. so, call now. humana. a more human way to healthcare. all right, let's get to a "mad dash. we've got a good one today normally, jim, you give us research that you think is of interest today, you're talking nike and a little lulu, and this is cramer. >> yeah, well, i mean, look, i can just -- i could just mouth what happened at communicopia plus, right, or the laguna industrial conference. i don't go there listen, partner, i got this

morning my ollie's flyer, every week i get my ollie's flyer, ol ly ly's bargain, and it made me shake. not rattle and roll, just shake. ollie's flyer has an active wear blowout. $14.99 versus theirs, $67.99 puma and adidas fleece joggers and pants, $12.99 versus $45 david, theirs is a combination of nike and lulu >> you think, what, people will trade down that the power of the brand is not going to be enough >> why does adidas trade down in adidas is hotter than nike >> you said puma >> they're both -- they're stuff is both on sale at ollie's but what matters, david, just to step back for a second, is that what's happening is that the erosion of nike matches the erosion of intel these are companies that, right now, don't -- they've lost their

way. what are you -- what >> that's rough, man that is rough. southbou isn't this enough to satisfy you? >> snickers satisfies me >> you've been on nike a lot lately >> i've been on major franchises listen to me, partner. i did not like starbucks, but they did a couple changes and vavoom, i love starbucks brian niccol >> what are the changes that nike needs to do >> i have no idea. go read the first two quarters of brian niccol. he said, listen, i -- look, i love the food, but there's some things that need to be changed this service, the restaurants, the way that we do things, our supply chain, throughput, but i love the food. ha i love the coffee, and everything else, let's do some work >> okay. nike's clearly got work to do. >> david, activewear blowout at ollie's. when you saw the flyer, what did you say? >> you know i read those flyers every morning. >> you didn't get it

i'll forward mine. >> i try not to buy anything at this point, i should be good from here on i don't need anything. just let me sail on into the future >> that's kind of apocalyptic. >> i got plenty. >> okay. >> all right >> we got an opening bell coming up, though and by the way, you can catch us any time and anywhere by quk t flonghendolwi t "sawonhe street: opening bell" podcast. we're back right after this.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. all these guys recognize that when you have companies like facebook and google censoring american citizens, making it harder for americans to speak in their own political process, that is a major problem, and yeah, i do think there should be an antitrust solution to it i do think that not all mergers and acquisitions are bad, and sometimes, in the technology space, in the private equity space, you need to let some companies buy other companies. that's how investors get capital returns. that's how you promote capital formation. >> republican vp nominee jd vance earlier on "squawk" today who has his own debate coming up with walz in the coming weeks. >> i think these have always been hot buttons, what's

censored, what's not i also think that i'm always surprised that people don't start talking about tiktok and the influence that it has on politics there's just a -- it's a free-for-all in digital, carl. you can get anything i don't buy the idea that there's censorship i don't buy the idea -- i think you have to do this. i think you have to take everything with a grain of salt that's on social >> interesting hearing him talk about antitrust policy as well >> what was that >> obviously a key consideration as well for any number of the supporters in the business community of vice president harris, who i understand have been pressuring her as well, that if, in fact, she were to win the election, that she would get rid of -- >> lina khan >> yes, yes. that's what they would like. >> ahead of the litigation conclusion >> it was interesting hearing vance talk about the antitrust side, saying some deals should be allowed to happen obviously, they do >> i look at a lot of social

media, and when you look at meta a.i., that's the one by meta, you're always afraid that it's too influenced by social media and therefore not as accurate as you would like >> vance himself, the other day, said, keep the cat memes flowing. we'll see. at the big board today, it's palmer square capital management, celebrating the launch of two new etfs at the nasdaq, it's chinese ev charging company xcharge, celebrating a recent ipo by the way, we mentioned airlines a moment ago. now delta, ak, q3 will be at the high end, ex-i.t. outage >> i ayegot to hand it to these airlines it is good so, good for them. they're exercising discipline. you know who's not exercising discipline some of the semiconductor companies. there's a piece today that's a double downgrade from micron,

goes from buy to sell, talking about too much of a good thing and you're seeing micron is the reason why we're getting this sudden shift in all the semiconductors going down. i think there's excess capacity in cell phone -- the cell phone kind of semiconductor, but not in high bandwidth memory, which is what we should be concerned about, because high-bandwidth memory is a.i. i question how bad things really are there, but this piece says things aren't so hot and it's causing all these stocks to go lower. these were the darlings of the second half of yesterday, carl we're now in this minutia. the stocks that rallied between 11:57 and 3:25, boom, taking a shot >> expectations for adobe tonight? >> you know, i was listening this morning, listening to dom talk on worldwide exchange that there was someone talking about the idea that adobe's doing incredibly well, but my problem is that they still have to

outline a strategy on the low end, and i revere -- i revere these guys i think that they do their product, heaven forbid don't even -- they have a product called firefly, wasn't talked about enough. it is so electric, and it is doing so much for small business people, far more than the $50,000 tax credit you would get from vice president harris >> which you're not a believer in, because you argue it is so hard to start a small business >> it's so hard that if they just said, listen, we'll give you a thousand dollars to be able to make it so you can have an llc and hire an accountant, that would be better than giving $50,000 for when you eventually pay off, since there is no payoff for the vast majority of small businesses this does not make them want to -- you don't start a business because one day you get a $50,000 tax credit you start a business because it's something you want to do in your heart, but you tend not to have enough money, and that's why they fail. >> taxes are meant to encourage or discourage behavior of all

kinds. >> rich people who start small businesses are going to do quite well with that, but i don't think that was their intent. but if you're really rich and start a small business, maybe you want a tax credit. was that their intent? >> whose intent? >> vice president harris >> i don't know. >> i don't know. you've really thought this one through. >> give me some time, okay i'll think it through when it becomes a reality. gm shares are up, you know, we began this week with bmw having a significant earnings warning, the stock got hit. we talked about it a lot monday or tuesday china demand, of course, part of that gm got hit as well, significantly. you can see, if you take a look at a one-week, what happened up today a little bit. "the journal" reporting a story saying that they're exploring a joint car development deal with hyundai. that would help them cut costs by teaming up on new models. that's a "journal" story, but that may be one reason why the

stock is rebounding a bit. but you can see the decline i'm talking about, in particular on tuesday after that bmw news hit in terms of weakening demand from china now, is that just because there's so many evs to choose from in the chinese market that are domestically manufactured, or is it just because the china consumer is particularly weak right now? >> there's that charging station company that just did an ipo this morning, rang the bell. i keep coming back to, if we had more charging stations, everything would change. >> in this country >> yes it's really important, because i think the range anxiety turns out to be what hurt hertz. by the way, there was a piece today about avis, saying they're not as bad trouble hertz bought all those -- all the electric cars. >> hertz bought a lot of teslas, and it didn't work out well at all. people kept getting in accidents with them too, and then repairing them they don't know when to hit the brakes the whole thing. >> i would point out, carl, you

referenced this, that a adam jonas, affordability versus profitability, autos entering warning season well, i mean, this is about credit across gm, and ayei've gt to tell you, this piece made me feel very uncertain about the autos. >> he says margins are not sustainable, delinquencies are up, inventories are up, and remember when you couldn't get a car? at least not the kind with the specs you wanted >> and what's happened is that, again, i'm a broken record on this this is what happens before a rate cut you can't go in a rate cut with things great that's one of the things people don't seem to understand when things are great, you don't cut rates. when things aren't great, like with autos, you cut rates why do people continue to think, i want everything to be great and why isn't it 50 basis points let them eat gateaux >> maybe they eat yogurt >> david, you don't talk nearly

enough about the food m&a. where are you on this? >> i'm sitting here reading a press release. what do you want from me it's divestitures. >> kellanova >> kellanova was the big deal. huge >> you told me i would be safe in the non-snacks. >> i did call up a couple of my deal-maker friends things are percolating rates coming down, valuations have peaked. lot of strategists are thinking about stuff again. this is a number of different people i spoke to, including, of course, diverstitures we got one today, general mills selling yogurt >> just north american yoplait >> the north american yogurt business they're selling it to lactalis and sodeil, two leading french companies. i was just in france they got a lot of yogurt there >> is it the yogurt capital? >> dannon has something to do

with it? >> there's a lot of yogurt choice, and now there will be even more. >> true. i had a call last night, he said that he liked my brione. french no this is made in italy. this is worth more than -- >> do you want to weigh in on general mills, which continues to sort of shrink to grow, so to speak? we've turned over nearly 30% of our net sales based since fiscal 2018, says general mills, by efficiently managing our portfolio, sharpening our focus on our global platforms and local gem brands that have stronger growth prospect >> that blue buff, are you on chewy getting the blue buff? that's a service that brings the food to your house >> i don't have it, no >> thank you okay >> meantime, kroger, we're going to talk to rodney mcmullen, but they guide in line with a slight miss on sales. mcdonald's, going to extend $5 value meal >> how about that? how about that $2 fried chicken sandwich for those who are club members? i'm telling you, i'm reeling

from the $7 egg mcmuffin, i have not been able to deal with that. but the $5 sandwich, that's what you need wingstop is winning this war >> you mentioned that yesterday after you had the ceo on >> well, yeah. i was trying to, you know, amortize "mad money" over "squawk on the street. >> i notice you do that. >> yeah. look at that mcdonald's chart. do you know that's the same chart as general mills look at these recession stocks general mills overlaid on mcdonald's, there's no daylight. >> okay. does that keep going >> no, it's just that there's a lot of people who still think there's going to be a hard landing, which i'm sick of, by the way. but look at that david, that's hard landing that's nonsense, the hard landing theory that's people who are jay powell haters secret jay powell haters >> you don't think we get a recession? >> no. worried about an expansion >> are you worried about what

jam jaime is worried about >> i put that on the sell list i don't want to hear about it because of the comments yesterday. >> daniel pinto. i apologize. >> i apologize for that too. i don't apologize for my interpretation of everything he said, which made me feel like, you know what, let me take a look at bank of america as warren buffett shells it every day. holy cow how much has he sold this week, pray tell? >> they're selling a lot of bank of america at berkshire, it's true >> certainly the commentary out of david some lomon with wapner yesterday was constructive >> that's how i came up with that hard landing/soft landing thing. that was some great interview. that defined -- that also was an interview -- >> that's true he said, base case, i think, is 25 basis points, but there could be a case for 50 jpmorgan said the same thing yesterday, and then solomon also talked about the banking environment. take a listen to that one. >> environment's actually okay, i would say, you know, for bank

activity in our business there are places where it's been accelerating i think we've seen a real acceleration in capital markets activity some meaningful improvement in equity capital markets and m&a activity >> you got this "journal" piece on bankers' hours and how they're trying to be more cautious of overworking young bankers to death >> what the heck i mean, come on. you go to wall street to make a lot of money, so you have to work hard. i talked to my coffee guy for the last 25 years. people don't even come to work 80 hours they don't even come to work when they're working at home, they're snacking >> they come every day at places like goldman and blackstone. >> and you're on call. >> doctors are on call too >> and you know, you get up to 80 to 100 hours in a week? >> what's the matter with that >> nothing >> what's the matter that's a lot >> for you, that's like, you know, a week where the days -- >> people tell me that when i

come in, and you're out, and the next shift leaves, and i said, i'm trying to do the hundred hours. don't you aspire to anything >> it's true yeah >> by the way, my only regret -- >> helps your marriage >> my only regret will be that i didn't work enough thankfully, you won't have to say that >> he wish he worked harder. >> if there were only more hours in the day that i could have worked than cramer >> now you're talking. rodney mcmullen is crushing it today. he doesn't need no stinking deal with albertson's >> well, he's not going to get it, is he? >> no, he's a dreamer on that. i love the guy, it's like, please it's how i feel about solar. it's really horrible, but i love it >> the government's case against, of course, the purchase of albertson's is going to conclude early next week >> rodney is a winner either way. >> we'll get a decision not long after that, probably in october. i'm not -- you know, i haven't read the transcripts lately,

so -- >> it's just -- you know, it all has to do with how they screwed up in a previous case. it reminds me of when they let all the airlines merge and then they felt bad and now they block off the mergers. these guys have a heart. they're like the tin man but they really have something >> i don't know what this had to do with "the wizard of oz," but the point is they allowed the deal where safeway was purchased and then the divested stores, it didn't work out at all >> because of haggen >> which went bankrupt soon after and one of the key considerations in this case is cns, the -- which is going to acquire many of these stores that will be divested, and the government's contention that it will not represent a true competitor >> you summarized that so perfectly, i don't even have anything more to say i'm speechless >> wow that will last for ten seconds >> what are you talking about? >> there you go. >> they work more hours, they would have realized that deal was going to be. what kind of lawyers and bankers advised them guys who work 60 hours a week.

that's who advised them. had they spent another 40 hours, they would have realized this deal is never going to be done it has to do with hours billed >> it was taking -- it was taking a shot, as you pointed out many times, albertson's -- excuse me, kroger believes its competitors are walmart and costco >> they believe it it's right >> their contention is to lower prices, they need to have more scale. >> i ordered something this morning at 4:00 on amazon. they said it would be delivered between 9:30 and 10:00 today how is that possible >> there's rodney mcmullen you've got him later as well >> he's on in the 11:00 a.m. hour >> he is so pleasant and smart, and i really like him. oracle is up a couple today. >> we'll see that analyst meeting at 1:00. >> oracle is up again? i'm sorry. >> come on >> this company is approaching $450 billion take $450 billion, 41.5% of that is larry ellison >> he doesn't stop talking about how rich ellison is. >> why would i it's incredible.

>> a man is an island. i've been telling you simon and g garfunkel were wrong one thing that's absolutely true, larry doesn't watch the show >> why would he? you know why he's working >> how many hours? >> it's early in hawaii. you don't get to be worth over $200 billion by not working. >> he's the hardest worker i've seen >> even at 80 years old. i focus in part on it because i think it's funny i spent so much time on paramount. he's contributing $6 billion to the purchase of paramount, the merger with skydance as well, which he controls along with his son and karen red bird, but $6 billion, i mean, the guy literally made twice that in a day. >> what's he make on the interest each day? >> yeah. >> exactly >> less than what the dividend payments are to the walmart heirs. >> that's good >> on a monthly basis. >> can i offer him an open invitation to come here and sit in mike sievert's seat >> the dan ives chair? >> larry ellison doesn't know you. he doesn't care about you. he never thinks about you.

and i just want you to know that i love doing that. i'm sorry. >> i feel like an eaten dog. >> oh. in springfield, ohio >> i've neve earlier today >> how could they have made all that money and not done anything with it? i think the cancer vaccine is not here it was all about the cancer vaccine from day one you know, i did some work, my daughter had melanoma, it's kind of known, and i was trying to find out what was the possibility of a cancer vaccine melanoma they're nowhere. nobody's anywhere on this stuff, and that's just the real tragedy. by the way, you know who's going to solve this? the cancer vaccine jensen he's spending a lot of time on health care and creating

individualized health care because they can do millions of permutations they can do it in an hour. i was used to take years >> i always get confused when you talk about things like this, because i think of nvidia as a company that sells hardware and software, but the chips to others who figure those things out. then you say, well, he's working on it. >> he likes to invest in a lot of these companies that's why he invests in companies. >> nvidia is not working on that >> no. he's funding companies that can use these super accelerated computing to be able to make it so something that might have taken years to examine, well, cancer, can be done in hours and days this is a terrific article that was in "science. "nature" covers a lot of this. people don't understand. it's taken so long to come up with data, but not with nvidia so, you can just batch data instantly. remember when the airlines used to be, like, batch them overnight, for heaven's sake that's -- he's thinking about this stuff in a big way. he thinks health care kind of like tim cook at apple is the

next frontier because we're so far behind where we should be. we are >> where we should be? >> cancer in particular. well, yeah, i mean, we don't -- >> we've made a lot of advances, though >> we have >> there was a period of time when there was nothing being done and the latest drugs were just iterations of previous drugs, a little bit better in the last 10, 15 years, i mean, think about keytruda and what that's been able to accomplish and in combination with other therapies even malanoma as well, what's been able to be done there from immunotherapy. specific cancers can be targeted >> if you don't catch melanoma early, the hope is once it's in the lymph nodes that they've got something for you, but you've got to catch it early. >> you didn't mention lilly putting another $2 billion into ireland. >> and two different plants. and you think that the amount of money they're spending in the last year is equal to the whole viking th viking therapeutics, which is why i prefer viking the cruise

line >> travel names are doing well today, a lot of airlines and cruise lines helping out, although the dow is down a bit watch bonds today. we mentioned the ecb cutting 25 basis points as expected that's the second time in a few months, and they keep their 2024 inflation forecast intact. ten-year, 3.66%. we'll take a short break, be back after this.

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of unlimited and get one free for a year. time for jim and stop trading. >> dow came out an preannounced going to miss their revenue numbers by about a half billion. they have an outage so it's really not just anything about

pricing, but in europe, they are having input cost problems and margin pressure offset by the u.s. doing well. this is an industrial that if it were at 60 you would be thinking the fed shouldn't cut. if it's below 50 you think the fed i hope they're aware that dow, a gigantic chemical company, is not going to hit the numbers. >> we'll watch that. down almost 2% in a relatively flat tape. how about tonight? you mentioned signet. >> signet is important because this is, you know, jared's, kay and it's going in the holiday season and then cava bret schulman, this is the best performing restaurant chain this year and cava, right down the block, universally loved it has the mediterranean food doing better than sweetgreen both are terrific. >> i was going to compare cava and wayne year-to-date. >> that's an interesting idea. >> not close. >> i would tell you if you look

at chipotle, brian niccol, $6 when he took over. look at that appreciation from 2018, in march of 2018, that's what you're looking for when you get a ceo. >> you got a big thing coming up at noon. >> noon, i've got my bimonthly make for the club. thank you for mentioning it. people should join why the mag seven actually live and how all this nonsense about why they should be sold, no. >> no. >> not only that, but what the secret weapon of nvidia is. >> something we don't know yet >> it's something that disagrees with michael, the best strategist in the world from jpmorgan actually he's in favor of nvidia, but it has to do with the truth about the hyper scalers. i'm telling the truth about the hyper scalers at 12:00. >> that's a tease for the investment club. >> investing club. >> sorry. >> investing club.

>> i apologize. >> by the way, it's not doug >> no, it's dan. >> but i'm cutting numbers. >> you don't like this sguy. >> solomon, many ways disagreed from pinto doesn't mean anything. >> see you in two hours. investing club in the meantime, dow is down 130. we're back after a short break

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good thursday morning. 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 stock exchange. we lost some of the early gains and lower fort s&p 500 down 0.2% nasdaq unchanged outperforming again. communication services best performing group warner brothers is helping

david will talk about that in his new reporting in just a bit. alphabet, higher, meta, netflix. consumer discretionary remains higher as well you've got the home builders rallying and some of the hotel companies as well. all the other sectors are lower. health care at the bottom of the pack today down 1% financials also continue to get hit. it's been a tough week for the banks down another 0.5% this morning. nasdaq just positive sort of unchanged. some of the big tech is higher tesla is up as well. take a look at treasuries. the ppi report selling in bonds after a big rally last week and the last few weeks, but the 10-year still low, 3.66 and the 2-year near the bottom of the recently range, 3.6 as well 30 minutes into the trading session here are three movers we're watching take a look at shares of moderna plujing after the drugmaker announced plans to cut around a

billion dollars of expenses in the next three years and expects ten new product approvals through 2027 and aims to slash r&d spending stock selling off more than 17%. nvidia helping the market and continues rebound coming off its best day since july. now on pace for its best week in a month. the chip giant lifting other tech names as well and then shares of oracle adding to recent gains after the earnings beat earlier this week. hitting fresh record highs and only trailing now nvidia among large cap tech stocks this year. the ai player in town. but let's talk about the overall data and what we learned today i'll start with jobless claims since the labor market is most in focus for investors right now. a little tick up on jobless claims the number of americans filing for claims last week however, still pretty historically low and this report, week by week, continues to point to a labor market that

is not very unhealthy. there are not big layoffs happening. firings, modest. now job growth and hirings are modest we're paying attention to that and so is the fed. no sign of real alarm even though we're seeing some fluctuations higher in the jobless claims and continuing claims those continuing to file for unemployment benefits. the inflation report, ppi, not as important as yesterday's cpi, but another somewhat hotter reading if you look into the core and monthly numbers that came as a bit of a surprise if you break down goods versus services we know where the inflation problem still is it's in services i mean there's the goods wholesale inflation versus the services wholesale inflation you can see that continues to be the story. what is it you know, there's certain

persistent service inflation in places like insurance and transportation services and, david, it just -- it's more data that argues for 25 basis point instead of 50 basis point. not a huge reaction. >> no. yeah i think it would be a great deal of surprise were we to get 50 at this point >> and a great deal of criticism probably as well. >> maybe fear as well. >> maybe some fear what is the fed so scared of why do they have to adjust so much inflation maybe is coming in a little bit hotter on the monthly so they have to be careful they've been cautious on the inflationary front speaking of that, we have the ecb out this morning they cut rates 25 basis points as expected. as far as the signal about what comes next, president lagarde gave none. data dependent we are not precommitting she answered it in five ways from multiple questions.

she did be talk about the downside risk to the economy in europe and the global economy as well listen. >> the risks to economic growth remain tilted to the downside. lower demand for exports, for instance, to a weaker world economy, or an escalation in trade tensions between economies, would weigh on area growth russia's unjustified war against ukraine and the tragic conflict in the middle east are major sources of geopolitical risk this may result in firms and households becoming less confident about the fewer and global trade being disrupted. >> a lot of talk about trade, carl, which i thought is interesting. we don't get that as much from fed chair powell, but it's clearly a front and center conversation in the election and she's paying attention clearly to the prospect of increased

tariffs and trade tensions and the spillover effect on europe. >> just thinking about the draghi report earlier in the week and the sort of indictment of not just innovation, but over reliance of trade with china versus say, for example, the united states. they've got structural issues they're having to deal with in real-time. >> she praised the draghi report, actually gave a few times gave some credit for it, and it's getting praise by a lot. it calls for an increase in spending and the lack of competitiveness because of regulations in europe. a lot of people in the market are pointing saying yes, this is definitely europe's problem. so that's going to continue to be a conversation. >> yeah. >> they have to do something when you look at the divergence in gdp growth since the end of the global financial crisis it's stunning >> axios -- >> the eu essentially and the sglus axios today has a nice nugget in the last 50 years, the u.s. has created six companies

worth a trillion dollars each. in that period of time europe has not even created a company worth ones $100 billion. >> think about all the companies, the mag seven, they don't have any -- spotify, i don't know, i'm thinking of companies in europe. >> big, important companies. air bus is a big, important company. >> but they don't have big, important ai companies technology companies brian moynihan referenced it in terms of the basel iii regulation saying we're trying to match, you know, the european framework of basel but draghi's report showed how uncompetitive they've. they should try to be more like the u.s. in terms of capital markets and innovation. >> a lot of things -- i covered the wireless industry from years from its nascent years and the europeans were ahead of us in all ways in terms of that regulation just basically drove

the ability to invest out of the business and look where they are now. >> right it's a problem. >> it's a problem. >> the problem is, are they going to have enough political will from their members like a germany to spend and to do what's necessary that remains to be seen. we diverge there's fresh commentary on the economy in the u.s. we're paying attention to today and on the consumer signet jewelers, the engagement recovery is happening. gina drosos the ceo says the sequential acceleration in same-store sales makes q2 the fifth consecutive quarter and the largest improvement we've delivered in more than two years. q3 is tracking positive and it was led by strength in fashion that we also saw sequential improvement in bridal and continued strength in services it's so important for them to see engagements go up. people getting engage. they own zale's, kay, jared, and

i love some of the data that she gives me on this she said google and instagram searches for engagement rings are up significantly in recent months and this algorithm where they check for couples getting engaged. 26 of our proprietary milestones have been met where they're highly likely to get engaged 90 basis points higher than last year and the highest number of couples wave seen yet. romance is in the air. good thing for the economy if you're in the engagement business. >> better housing mobility will help out. >> housing formation will be helpful. >> on affirm, the only other comment i want to highlight. worry about the consumer, how is the buy now, pay later space and max leafton sounded a positive note the ceo but qualified it by saying our customers are in better shape maybe than the average consumer. >> as for the latest inflation print today and where the market goes from here, let's bring in point 72 asset economist dean maki and see cfra strategist sam

stewval. >> sam, let me talk with you about i guess you're drawing caution into looking at periods after the first cut, right if it's not always roses. >> that's right. well, carl, it's the big difference between wanting and having that in the period between the last rate hike and rate cut, the s&p has gained an average of 18% going back to 1990 yet in the 30 days after the first cut, we end up seeing the market tread water, gaining less than 0.5%. most of the action is below the surface, however, in the sectors areas where a lot of leaders being in the defensive areas but i have to include technology in there because investors don't want to be giving up on the growth. >> right that said, you are looking for maybe a post election rally, am i right? >> absolutely. so typically the seasonality gets shifted during the election

year instead of august and september being weak, it's september and october. and you look at a majority of styles, sizes, sectors, and subindustries in negative territory in september and october, but then the reverse is true in november and december. once the uncertainty of the election has been lifted, you find that all size and styles and sectors and 97% of the subindustries are in positive territory led by more of the growthy areas. >> dean, how about you how you thinking about today's print and what is on the line for retail sales in terms of what the path, whether it's 25 or 50, what the path should look like from here >> i think the bottom line is, we remain pretty optimistic on consumer spending. if we look at the labor market consumer gets solid labor income growth and inflation is coming down, especially gasoline prices and that's giving strong and real growth to consumers and will keep them spending.

household net worth relative to income is higher than it was at any point in the seven years prior to covid, so we think that is also supporting consumer spending at this time. we remain optimistic on growth right now. >> does it support higher inflation numbers? the market and the fed is feeling so confident that flation is in the rearview mirror but if you see this real wage growth translate into better spending does that keep inflation still a risk >> we have seen a tremendous moderation in inflation. we have to give the fed credit for bringing inflation down. you know, i think it's always a risk if the fed were to cut too fast, i think if the fed were to cut the way the market is expecting them to, you would be seeing, you know, late next year into 2026 some risk of inflation reviving back up i don't think the fed is going to cut at that kind of a pace. >> you're not worried about the hotter core readings and ppi

today and cpi yesterday? it doesn't feel like the street is too worried about it, although it does reverse a recent trend >>yeah i mean the inflation numbers are going to go up and down and i do think there's a risk that the fed doesn't get inflation down to 2%, it gets stuck in 2.5%, 2.75% range. that's not a disaster and wouldn't cause the fed to retighten. in the near term that is the main risk on the inflation front. >> the bottom line you don't see as many cuts as the market sees right now. >> that's right. i don't think the fed is going to be doing 50 basis points cuts and the market is expecting a couple of those in the coming months. >> is that going to hurt, sam, when the market begins to process that reality >> not at all, sara. i think actually i agree with dean, we will see a 25 basis point cut in september, and 25 basis point cuts in november and december actually, you look back and you

see that the 50 basis point cuts occurred in 2001 and just before the financial crisis of '70. all others started with a 25 basis point cut. i would tend to say if we got a larger than anticipated one, it would signal that the fed knows something we don't. >> dean, finally, brief comment looking to you on the labor market there's been this discussion that the fed really because of the uncertainty of the break even rate, it's about the unemployment rate that is the locus of their attention hiring is kind of stable and layoffs are kind of stable do you think margins are in a neighborhood where corporates can avoid big restructuring and head count reductions? >> i think that's right. corporate profit margins are very high in historical context right now and that's not the kind of environment where corporations make large layoffs. what we've seen is the fed wanted to prevent the labor market from overheating, and that's happened.

the job growth has slowed down, but we're not seeing the kind of laying off that turn towards recession and i don't think we're going to see that, given how strong profit margins are and given that we think growth is going to be okay going forward. >> we'll see what kind of discussion that gets in the meeting and the presser in just a few days dean and sam, great to see you guys appreciate it. >> my pleasure. as we head to break our road map for the rest of the hour nvidia shares on pace for double-digit gains this week after a bullish fireside chat from ceo jensen huang. a lot of new street commentary to tell you about. >> shares of warner brothers discovery up about 5.5%. some new report on a new distribution deal it side with charter. >> energy the worst performer on the week, on the quarter, on the year is there more pain ahead we'll talk about that as "squawk on the street" continues

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what you're seeing there, since it plays an important role in the price moves of this commodity. >> i mean, it is the big story of the year for the oil market i mean the reason why oil has been under so much pressure has been underwhelming chinese demand we have seen lower levels of imports into china significantly lower, lower level refiner utilization in china this is the story that has so much concern of the market participants the other story we're watching is what's on the supply picture, but it's all giving the concern we are going to be in an over supply situation for 2025. when opec took the step of announcing they were continuing the voluntary cut for 2 million barms, the market remains focused. >> when doing your analysis how much time do you have to spend on trying to figure out the performance of the chinese economy in 2025 and what that is

going to mean for demand >> that's always a big part of the work on the barrel counter is looking at china. other centers of demand that we watch as well. india has actually relatively robust, but at this stage if you are having problems in china it's very hard to overcome that from a market perspective. so, obviously, in the coming weeks an months we'll be watching not only the import levels into china but where the economy is going more broadly. >> do you factor in different election scenarios in terms of your outlook on u.s. production? you have the candidates speaking differently about it one is drill baby drill the other one not much on oil, although production has done quite well in the biden administration even with more regulation and permits >> sara, that is such a great point. we've seen an evolution in the harris position. trump has been the consistent drill baby drill, america energy

dominance. if you look at kamala harris on the campaign trail in 2019 she was of the view you should keep oil in the ground, taking an anti-fracking position she has now really evolved and if you look at the debate that just took place, not only was she not going to ban fracking but actually u.s. production was important for reducing dependence on foreign oil. essentially reverting back to the old all of the above view that some democrats used to hold i think we've seen a significant change in the harris position. i think it mirrors the change in the biden position because yes, they came in very strong on their climate credentials, killed keystone xl, went back into paris but you've seen as they were facing higher energy prices telling producers, actually here to produce more shale. they released from the sdr they've been focused on using their tools it keep as much oil on the market as possible. >> then the refining and all the

capacity that's come online in the last year. what do you think that means for refining margins from here >> that is something we are oe, obviously, watching and the products market was one of the early indicators we were having demand issues. so clearly we're going to continue to watch what's happening on the products market with what's happening for demand for diesel, gasoline so that is going to continue to be a big story. >> thank you as always appreciate it. >> thank you. >> after the break, what one grocery chain, the biggest in the country, results are saying about the consumer details after a quick break.

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human way to healthcare. welcome back to "squawk on the street." fresh results out of grocery chain kroger same-store sales up more than 1% the company reaffirming guidance the ceo rodney mcmullen discussing the consumer on the conference call which has just been going on saying, quote,

customers are purchasing lower price cuts of meat, buying less and focusing on essentials budget conscious customers buying more at the beginning of the month to stock on essential items in groceries and as the month progresses they're cautious with their spending this comes at a critical time a hearing going on over the company's proposed $25 billion takeover of albertsons beginning to wind down chairman and ceo mcmullen will join us on "money movers" and we'll talk about the court case and earnings and we'll talk about what he's seeing with the consumer whole albertsons thing hangs over the company is this going to be an independent company as the ftc is really fighting this hard or is it going to be a lot bigger if they are able to merge and acquire albertsons i don't know, i'm sure our -- there's been skepticism on this deal day one and part of it is the political environment around high grocery prices. it's hard. >> it doesn't help

although as you and i pointed out even in a different environment this deal would have gotten scrutiny given the past and the safeway deal in particular and the failure failure of the divestiture package there. albertsons is trading at a discount to the value of what the deal is worth. there is a lot of risk here that the government will prevail in court -- >> there's a history albertsons safeway merger resulted in store closures, wasn't necessarily good for consumers. mcmullen has said there are no store closures planned as a result of this deal. he has said under oath that prices will come down for consumers. is that going to be enough for the judge? we're expecting a verdict around october 1st. we'll talk to him about how he thinks it's going in the next hour >> meantime let's get a news update with bertha coombs. hey, bertha. >> good morning, carl. a new york grand jury returned a new indictment today against disgraced hollywood film producer harvey weinstein.

a prosecutor shared the information in court this morning, but did not specify what new charges he faces. manhattan prosecutors are preparing to retry weinstein after new york's top court overturned his previous rape conviction finding he did not get a fair trial all of this comes after weinstein was rushed to the hospital earlier this week for an emergency heart surgery francine has weakened to a tropical depression after making landfall on the louisiana coast as a category 2 hurricane. some 14 million people are now under flood alerts in louisiana, tennessee, alabama, and florida, as the storm heads northeast spacex's crew dragon capsule has returned to normal pressure to officially end the world's first ever commercial spacewalk.

billionaire tech ceo jared isaacman and spacex engineer sara gillis were the only two of the four person crew to exit the capsule in spacex designed space suits. nasa's chief called today's feat a giant leap forward for the commercial space industry. starting with those new uniforms apparently they've been looking for new models for the spacewalks. >> indeed. had some limitations not quite as versatile as the nasa version, but amazing leap literally in the private space thank you. checking in on stocks, managed to erase some of the early losses a bit dow down 61. s&p is green vix lower below 18 still to come, nvidia shares on pace for their best pace in a month. what the street inthks about jensen huang's presentation yesterday in a moment.

great week for nvidia shares coming off their best day since july after jensen huang's bullish fireside chat at goldman's conference saying, quote, everybody is counting on the company. take a listen. >> i don't know one data center, one cloud service provider, computer maker we're not working with so what comes with that is an enormous responsibility and we have a lot of people on our shoulders and everybody is counting on us we probably have more emotional customers today than -- and deservedly so. if we could fulfill everybody's needs then the emotion would go away it's very emotional. it's really tense. we've got a lot of responsibility on our shoulder, and we're trying to do the best we can and here we are ramping blackwell and it's in full production. >> interesting presentation. talked about how much the hyper scalers can generate for every dollar of investment in nvidia

i know it's a goldman desk, but they said not sure i've ever seen so much energy and excitement at an industry conference before. >> i think i saw pictures of th% attendees attendees lining up. early presentation, 7:00 a.m. pacific time interesting to hear him talk about highly emotional and very stressful and the pressure it's under to deliver in particular on blackwell, which he said was in full production but has faced some delays as the next iteration we talk about all the times in terms of powering the large language models and data centers, the gpus, it's nvidia's game and everybody is spending many billions, sara, to get there. >> that's what happens when you become the most important stock in the market, right it's a lot of responsibility and pressure i thought it was interesting, did you hear when he talked about jobs, and he talked about software engineers in particular he said the days of every line of code written by software

engineers are completely over. the idea every one of our software engineers will have digital engineer companions 24/7 is the future and that's what's happening at nvidia. 32,000 employees are supplemented hopefully by 100 times more digital engineers in the near future. >> amazing it wasn't that many years ago that parents were instructing their children become a software -- that will make sure -- >> my brother-in-law. >> you will have a feweuture to know how to code. >> they're saying that's okay. >> but you're going to need fewer. >> yes. >> that's the implication. >> when you have the assistant filling in so much of it for you. >> right he did say, gen ai not so much a tool as a skill and it's going to be people are going to rely on people who know how to use it the question is there more room to run for the shares? let's get to seema moody to talk about what the street is saying as well as what oracle said

earlier in the week and some of the action in semis today. seema? >> yeah. carl, jensen huang's comments lifting nvidia's market cap by $200 billion the fourth largest single day increase for any company in history inviting street reaction bernstein naming nvidia a top pick writing to clients blackwell delays seems to be a nothing burger margin worries overblown and their price target 15 5 a share. morgan stanley's equity strategy team using fund mental and quantitative analysis adding nvidia to its list of names to hold if you want exposure to ai you can't not hold nvidia. they think the blackwell availability this year should cement its competitive position. the question investors are trying to answer is whether yesterday's move was indicative of a sustainable rally mizuho more cautious writing flows into tech yesterday were solid, but they did not suggest a wave of active buyers nor a rush to get long or semi names they said there's

characteristics of a short squeeze. we are seeing nvidia shares up another 2% guys >> seema, thank you. seema moody. of course taking a look at that historic run i did notice the stock, the company $2.92 billion market value, trails that of microsoft and apple. wanted to talk about a company far smaller but seeing a boost warner brothers discovery. shares have been gaining a bit this morning up some 7% right now. we first brought you this news around 9:00 a.m. this morning. a new deal carriage deal with charter a year earlier than necessary. their current deal didn't expire for roughly another year, but both parties in terms of at least having their own reasons for pursuing a deal early for warner brothers the key is showing the marketplace which has had significant doubt about its ability to get paid roughly

the same amount for tnt we detailed many times is likely not to have the nba, although they are litigating to change that outcome they're getting in the new deal flat payment is my understanding. that they see is a positive. they had reasons to want to go in and show the marketplace, show investors, in fact, that there is still value for their cable networks, not just tnt, which is flat, but the others all going to be up under this new deal charter which operates under the spectrum and broadband and wireless, pursuing a strategy they can offer their cable customers as many direct to consumer ad-supported streamers as possible. and so they're getting a big one with this. that is max. and, in fact, if you are the spectrum -- under the spectrum tv select package you receive ad-supported max subscriptions and spectrum is saying in a press release about an hour and half or so that this adds about

$60 a month of value to you. if you go in the marketplace and pay the retail price for all of the different networks that they have available, i should say the direct to consumer streamers, max, discovery plus, disney, espn, paramount, that's what you get. so that helps them of course they're paying a wholesale price to be able to deliver that ad-supported. they also as part of the deal as well will be marketing ad-free max to their broadband subscribers. and so there's generally, at least the hope on both sides, it's going to be seen as a positive, so far being taken as a positive as our viewers well know, linear cable networks are in a significant decline, even more so than the most pessimistic forecast might have believed a few years ago and both companies trying to arrest that and show the marketplace we can still get paid there's value there. obviously, tnt a very important part of that as well for warner brothers discovery which again up about 7% so far this morning.

i should point out zaslav will be presenting at the same conference we were quoting from jensen huang yesterday, about 1:00 or so eastern time. also expected to say some positive things about max subscriptions which were up about 3.5 million last quarter, but tracking above 6 million in terms of additions for max as it becomes more of a global provider. >> and then we mentioned the discount for discovery plus and disney plus in the 9:00 a.m. does that mean we're in the middle of a subscriber push? >> it does feel that way, certainly. i guess prices -- obviously, all moving price up significantly and frankly over time dramatically you want to talk about inflation. all these things were priced at a level that could never get to profitability. but the question, of course, becomes churn. so much easier to just turn these things off on a monthly basis than it is to get out of your cable subscription certainly. and have somebody come in and all the friction that goes along

with it. that continues to be a key concern as we watch some of the services get at least to a level of profitability for warner brothers discovery it is still the linear cable networks that provide the vast amounts of cash flow to the company and they immediate that cash flow given the debt load they are still sustaining. >> what's happening with disney and directv? s >> they're still in blackout directv going back to the decision in the venue case where a preliminary injunction was issued and the judge had a thing to say about how programmers bundle their networks, what nobody wants and looked askance at that. it didn't have any -- she didn't have any ability to stop the practice but directv is relying on that to argue its case. >> they still don't have espn during the football season. >> yep. >> box office between beetlejuice at warner and wolverine deadpool at disney, we're going to make the quarter maybe for overall north american box office >> bit of a resurgence through

the summer as well disney, obviously, was very happy about the performance of both of those films. >> yeah. best grossing r-rated film in history. >> "inside out 2" was really good. >> yeah. >> if your customer is 6 and 4-year-old like mine. >> check it out on disney plus. >> we took them to the theater like old school. >> norfolk southern firing its ceo after alleged misconduct with the company's top legal officer. what investors need to know about this story when we come right back at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real.

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their banner year hitting yet another all-time high in today's session. and one trader thinks there's even more upside to come find out why and how to possibly capitalize on that glitter and gold, tune in to our market navigator segment at 2:00 p.m. eastern time

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after a headline filled week norfolk southern has ousted alan shaw want to get to morgan brennan with details on the story. >> terminating alan shaw, appointing the cfo to the ceo role that is effective immediately. this after preliminary findings found shaw violated company policies engaging in a consensual relationship with the chief legal officer nabanita nag who has been let go. the decision coming days after cnbc broke news of the investigation. it ends a tough two-year tenure for shaw who took the helm amid intense labor negotiations with unions, that spanned 2023 ohio's toxic derailment and cleanup efforts, sitting with shaw in east palestine that resulted in a $600 million settlement with residents and triggered scrutiny of safety regulations and earlier this year proxy fight with anchor ra which fought for

shaw's ouster and a majority of board seats that resulted in we'll call it a partial victory with three board seats turned over shaw keeping his job at that point. what's next? norfolk southern reiterating full-year guidance as it looks to improve service and margins the board chair saying in the release that mark embodies our corporate values and is a champion of our safety culture and close partnership with our accomplished coo them continue to improve the operating performance and close the margin gap with peers. analysts expect to see minimal disruptions. as for compensation with shaw specifically fired for cause, he will be forfeiting any severance package, stock awards and pending the outcome of that ongoing investigation, clawbacks on compensation are not off the table. so shares of norfolk southern down fractionally, guys, and this is one that we will continue to watch, especially because you're going to get the new ceo, the first comments from

the new ceo at morgan stanley's laguna conference tomorrow >> where do they stand with the activist pressure and the sort of new challenges facing this new ceo? >> i think that's a key question here anchora not giving a comment but, of course, as i mentioned this proxy fight, three of anchor ra's picks for the board were successful in taking over those positions on the board and given the fact that this investigation has come to light certainly with some of the reporting we've seen out there in the last couple days from my own reporting, it's very accurate, i think, the fact that they are involved with the board and they're key shareholder in the company, really speaks to how and why this came to light and how quickly all of this has happened but norfolk southern is very, very clear, they've been very clear, they have rewriten and specified those rules in repeat years about these types of relationships and that speaks to why shaw was fired for cause

i would note nag was not fired for cause. she will likely, based on my reporting, be seeing some of those serverance and stock benefits as she leevgts company as well. >> morgan, i notice they put in unanimous decision of the board indicating three independent directors also. >> yes. >> were in favor of elevating. anything to read into that in terms of trying to figure out whether anchor ra will come back again? >> the way i would read into this and is the fact that you're talking about a cfo now ceo who is very well respected on wall street, he has deep financial knowledge, long-standing in the industrial space he was at united technologies, the company that used to be united technologies, before going over to norfolk southern he works very closely with john orr the newly appointed coo at the company who came in in the midst of the proxy fight and turnaround effort at norfolk southern from a financial and service standpoint

expectation here is that you have a strong team and continuity with this team and i think that's very much what is being brufts by the fact that they made it very clear in the headline of the release last night this was a unanimous decision we'll be watching for comments l >> stock not doing a whole lot down more than half a percent. thank you for the details. morgan brennan on the norfolk southern twist. let's get a check on moderna after announcing a half billion dollar cost cutting plan it's the worth performing in the s&p 500 and nasdaq as the broader markets waiver, the s&p back in positive territory. tech is helping out today. you've got broadcom, nvidia, meta, alphabet, netflix, amazon, tesla, all in rebound mode offsetting some decline in moderna, which is hurting the nasdaq more sectors turning green

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let's say you're deep in a show or a game or the game. on a train, at home, at work. okay, maybe not at work. point is at xfinity. we're constantly engineering new ways to get the entertainment you love to you faster and easier than ever. that's what i do. is that love island? when people say these tariffs are going to have an effect, donald trump already imposed specific tariffs on certain industries you didn't see the negative

consequences come to light in fact, what you saw was rising wages and rising take home pay when people say you can't do this in a narrow way, in a broadbased way, i don't think that actually fits with reality. >> republican vice presidential nominee senator jd vance on "squawk" today talking about tariffs. kind of reminds me, david, of the way wilbur ross came on our show, held up the can of campbell's soup and said, who's going to be bothered >> by five cents or whatever the number was >> yeah. >> a can of coke, too. yeah, i remember that. >> that was on the aluminum tariffs. there does continue to be this idea -- trump talked about it at the debate thathe consumer doesn't pay for it, but you do pay -- the tariffs are paid by the companies. >> foreign companies pay pay foreign tariffs. he says the foreign countries are paying but then they pass on higher prices to u.s. consumers, typically, so we ultimately do pay for it and that is going to be the knock against these sort of

blanket tariffs, is that it will raise inflation for the u.s. now, vance is right that the last time this happened, it didn't cause substantial inflation but they were still targeted they were in aluminum, they were with china, so who's going to eat them or just a negotiating strategy, like so many have said, including -- even jan hotsy at goldman sachs. >> it's important to know what the countereffect will be, what tariffs they might put on our products trying to export. >> i think all of the economic policies, this is the one where trump gets the most heat from the business community, which is why i'm looking forward to a conversation tomorrow. we'll have a rare interview with famed investor john paulson, who is a trump supporter. >> yes >> a donor

has hosted fund-raisers for him. it will be good to get his thoughts under what an economy would look like under donald trump, under kamala harris, as he sees it of course, i mean, his views on the market, housing, don't get to talk to him that much so i'm looking forward to that one. >> he runs his own money, i believe. >> paulson and company. >> he obviously had the greatest trade and then raised an enormous amount of money as i point out with so many others, no offense to him, i think he lost more money than he made for investors over time >> it was a huge trade and then he raised all the money during that period and then his performance wasn't that good same thing happened to julian robertson. you can go through all of these names of incredibly famed investors. it is interesting to measure over time whether, again, did they lose more money they made over the course of their career. when you're losing on $30 or $40 billion, it's a lot bigger number. >> part of it has been -- he's a

distressed investor and there hasn't been a distressed cycle since then that's one of the questions i'm going to ask, whether he sees that bubbling up again it's been an unusual cycle. >> never moved to puerto rico. >> no. >> big divorce, though. >> big divorce i don't think we'll talk about that >> are you going to ask him about that >> wasn't on my list, david. >> that will be interesting. looking forward to it. >> we've got the s&p up 0.4% live market coverage continues right after this gap inour health insurance? yeah, it didn't cover everything when i got hurt. good thing i had aflac. (aflac duck) hmmm the cash i got from aflac helped pay for medical expenses, groceries, rent. it really helped close that gap. (whisper) go, go, go! (group) yay! go aflac! go duck! get help with expenses health insurance doesn't cover. find an agent. get a quote at aflac.com. wish we had aflac on our team. you can! (♪♪)

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good thursday. welcome to "money movers." i'm carl quintanilla with sara eisen live at post 9 of the new york stock exchange. today the market reacts to another inflation print. this time it's ppi how will the number impact the fed decision next week we'll discuss. kroger reporting results as it battles the ftc over acquisition of albertsons. the ceo rodney mcmullen is with us this hour. palantir shares doubled this year, helped by the planned inclusion in the s&p alex karp will join us from the a.i. conference later this hour. first up i