>> i want one. >> you always say, wait until it's all worked out. >> this one, i think, there actually -- i might wait a little bit of time i got to figure it out i do want the headphones the new headphones >> really? >> yes i do i want -- you know, i want it all. i might wait a little. >> with the green slurpee weird drink. >> bye see you next week. >> have a good weekend ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. bulls trying to put a bow on this week's 3% s&p gain. best in about a month. 50 basis point cut gets a little more support ahead of the fed next week. oil is hanging on to $70 our road map begins with its bounceback stocks hit the highest levels of the month on these hopes for rate cuts beginning next week. we are watching tech as well nvidia looking to cap a stellar

week oracle getting a cloud boost, and adobe's outlook is disappointing investors this morning. and jet production has halted at boeing, this after factory workers overwhelmingly reject their latest contract offer. they're striking now for the first time since 2008. let's begin with the markets. interesting collision of bullish factors yesterday, jim, whether that was oracle or evercore going to a soft landing stance >> you know, all of a piece. i think we're at this moment where we're, like, nick, fed whisperer, unsure, maybe 50, maybe 25 but i think what was striking is there's a do-over in terms of what happened with jensen, what happened with nvidia, and perhaps the street got it wrong and then verify bid ied by the that oracle boosted numbers. we talked about that larry ellison boosted next year by like a billion dollars but then he's using numbers in the

out years that are so incredible that if you're not long these stocks, i think, david, you might miss another move coming >> jim, i think you hit the week perfectly there in terms of, at least, sort of -- >> thank you i got to run >> see you tonight >> going up to see foot locker >> great job i've been hearing the same i had a couple conversations this morning, one of them with a very well-known long-time tech investor who mentioned very similar themes, essentially. he is done he's leaving >> mary dillon uses more tech at foot locker. >> i have no idea why that came on >> this return to a.i. as a result of jensen huang's comments at goldman. >> also, our exclusive interview outside of the white house that was killer. >> everything you and i went through, of course, larry ellison had a say on that oracle conference call and everything that came out of the oracle numbers. microsoft, as well, presenting at goldman-sachs and communicopia, also so focused in terms of a.i. and all the

opportunities there. and so, you know -- >> are you more of a believer? you've been a skeptic? >> well, no. i've never been a skeptic in the power of a.i. to transform everything what i have been concerned about and continue to be is what it's going to mean for society in general. i'm not a skeptic on what's going ultimately happen. there are still different points of view. one is held more by the sequoia camp, which we all started talking about earlier this summer with that first report from sequoia talking about the return on invested capital and whether it would all find its way into apps eventually or how this is all going to play out from a value proposition, but whether or not this is going to transform everything no, i'm not a skeptic about that, jim. >> you're not. good >> and i haven't been. you know that. >> it's funny. when you speak to jensen huang, what he says is, this has been our call for 18 months and it's supposed to cure cancer. it doesn't cure cancer and he paused for a second to explain that that's not the point. it's about getting data

instantly that would take years to put together. i like that. >> well, cembalest's skepticism came from recent examples in which doctors were still able to detect cases of breast cancer better than a.i. right now. >> no doubt about it but it's a right now situation just to point out, as he pointed me out, that he has no problems with how nvidia's going to do. his question is the spend and how much now, oracle, ellison comes out and says the spend is going to be endless because you got to keep up with the neural networks there's no end to the spend. >> that's one of the key questions, this sort of idea that at least embraced by squid that there will be a day when it's kind of done, you won't need to spend as much on gpus, all the data will be taken in, the large language models will be largely complete in some way, and you'll move on to the next phase but it won't be value that's created as a result of those that are running the models >> right but i do think that one of the things -- like you look at what

tesla is talking about i mean, tesla's talking about robots it's talking about how to make real self-driving -- talking about a self-driving car it's the applications. when you take chemistry, which i managed to drop because i knew it would hurt my transcript, what i did is i recognized that this is about trying to do basic versus applied the basic's being done by jensen the applied is being done by elon, and the applied is huge. >> when it comes to actual stocks that, you know, again, we -- until the last three days where the nasdaq has outperformed the dow, for example, and we had a long period there where the dow was outperforming all of these names so as we move into the back half of this year, finish up september, we soon enter the fourth quarter, jim, i mean, amazon's trading at one of the lowest pes it's ever had >> yet it's above where it had the so-called disastrous quarter. >> meta and google continue to trade at levels that they often do, which is not particularly high multiples >> no. >> different than an apple, which is still 30 times. >> apple is 30 -- yeah

apple is 35. meta is very low very good piece by deutsche bank this morning, one of their year overviews to year-end. the selloff of tech could be over i think that's very important. i agree with you, david, that what's happened here is that these stocks have been clubbed and got interesting to people. >> meantime, getting some breaking news this morning out of uber. the company announcing it is expanding its autonomous driving partnership with waymo the two companies say they will bring autonomous ride-railing to austin and atlanta on the app beginning in early 2025. uber adds it will manage and dispatch a fleet of waymo's all-electric jaguar vehicles in both cities. uber's dara khosrowshahi is going to join us later on this hour of course, expanding, jim, out of phoenix >> right and to do it austin and atlanta, we know that the big problem has been local authorities if you go to phoenix and you want to go to the stadium,

glendale, there's real restrictions about what you can do i want to know how open austin is, how open atlanta is, and these are things -- are we going to now see them on the streets everywhere is that what's coming? and the fact that it's waymo, remember, they do not have an exclusive -- this is nonexclusive because cruise, going back to mary barra, cruise has a deal with waymo -- i'm sorry, with uber i will say, though, that i have been waiting -- david just talked about the multiple of alphabet well, david, until today, i thought that waymo was starting to be a bust >> yeah. >> i feel better >> you do? this is an endorsement from your -- >> yes, because waymo has been one of those things -- you know how alphabet does these things and it doesn't mean anything but they're there. don't you think it's interesting? >> i do. i still wonder, ultimately, about the underlying technology and the terms of how tesla's going about it and how he's using generative a.i. to now power his autonomous, which is a

bit different, i believe, than the approach from the waymos or cruises of the world >> i rode in a cruise right before the ceo was eliminated, so to speak, and carl, one of the biggest problems is that the cruise people always people aggrieved that if someone is killed, a pedestrian, one pedestrian versus, say, a hundred pedestrians from a regular car, we read about the death from the autonomous, but we never read about the other deaths >> this has been musk's take for years, that the aberrant gets reported the most, so for now, it would be a robot making a mistake, whereas we just put up with humans making mistakes all the time >> you get these videos of the -- the autonomous being jammed together, something wrong. there's whole movied -- movies

devoted to autonomous hitting each other >> it will take the death rates on the roads down dramatically there seems little doubt about that they don't drive like this >> how many drinks does autonomous have before they're really drunk >> they don't do that either >> we have self-driving in airplanes but there's a pilot right there the whole time >> i feel a little better when that happens, but yeah, i think what's going on is it takes one story that's bad, and then they put a pause on it, and it's painful, because, like david just said, you want safe driving, you do this i feel felt that the thing they ought to emphasize and the baby boomer generation is starting to get bad at driving this is what waymo told me waymo went with this >> elderly transportation is going to be a thing if you don't need to drive, don't need to take the keys away, that's a very difficult emotional moment for all kinds of families.

>> anyone who's done that knows this is a conversation you'd love not to have >> and you won't it's coming. but, boy, i've been sitting here saying that for so long. i mean, guys, five years ago, i was telling you all, oh, five years from now, they're going to be all over the place. >> a million by 2020 as musk is now famous for saying. >> they're not anywhere. >> do you think, jim, we're moving from a period where it's less about the hurdles of the tech and more about municipalities and local regulation >> i do. and i think local regulations have a lot to do with this notion of the -- i'm -- i don't want to regret this, but you could -- there was -- when i was at in san francisco, there was a mother and daughter that were killed in an accident, and it wasn't in the paper. but there was someone who had -- who was dragged, and it was in the paper, and so what the cruise people are saying is, how does -- how do we have this situation where the ratio of deaths is so low

and i think the reason why you have it is because we don't have enough data. because if we let these cars run, i think we discover that the fatalities are much lower, but we haven't been able to do it this might be the test austin, atlanta. that's going to be a test. >> and interesting they chose austin, which is tesla's backyard >> right in their face >> speaking of tesla, a couple notes today on not just october 10th but deliveries. mood is pretty good on delivery expectations for the quarter >> tesla is not a cheap stock, but i like the stock >> do we want to get to adobe before we wrap up this block stock's down 8%. its guidance >> the guidance is the guidance, my friend. >> yes, the guidance is the guidance, and the guidance is disappointing. q4 net arr, $550 million consensus was somewhere, $25 million or so above that i'm looking at a note here from bmo. guidance implies, you know, down 3% year over year for arr.

also growth of 2% year over year net new arr, jim, for the second half of fiscal '24 it's not great growth, but they had 11% revenue growth for the quarter they just reported, and they have a big backlog, as you want to -- whatever you want to use to describe that >> i just worry about competition. i also felt, david, that it didn't seem to matter how well they did, because all people cared about was what's going to happen in the next month is that fair do you think that's the way you should judge a great company like this? >> no, i don't >> i don't either. >> i don't >> i worry about competition by the way, ben reitzes from melius, worried about competition. canva, still there there is a cheap alternative, but firefly has been amazing that's their a.i i was aggrieved on this call because i think somebody should have said, we can deliver the numbers, we just want to be a little -- if you look at what

kroger said, rodney mcmullen, it's an uncertain time i'm using that because you got to eat other than the donner party, which was just a disaster for the numbers. >> you go to that donner party a lot. it's somewhere lodged in that brain of yours >> the diary of the donner party is incredible. they ate the glue on the wheels. i do feel -- i just want to go back to correct something. >> that david said >> yes i was very proud of working 100 hours a week, and just like adobe had a great quarter, i think that you should be a little bit more, let's say, positive about my hundred hours that i spent >> positive about it >> yeah. >> oh, we're going back to that? >> because, what have you done for me lately? i felt this call was, again, this was like -- he comes on our air and tells an unbelievable story, it's amazing, and all anybody cares about is, hey, i'm not buying that. you've got -- what's going on with thanksgiving? did you see that

there was a switch on the calendar that black friday is another -- >> another time, so it's going to make the comparisons different. >> they were carping they were carping, and they don't understand how hard adobe -- the people at adobe work and adobe is terrific >> they don't care how hard they work >> that's my point >> right >> my point is that you can work as hard as you want, and there's always skeptics. >> oh, it's my fault >> doesn't matter. >> the man who on his tombstone is going to say, i could have worked 101 hours a week. darn >> you could have. you could have been a contender. >> finally, in terms of the macro, which we'll talk about next week, of course, with the fed meet, he did talk about the backdrop take a listen. >> most people would characterize the economy as either a little bit slow or stable we have seen stability in our business i think we're all probably looking forward to seeing what both the fed says as well as

what happens in the elections. >> that's going to be a key point as we await retail sales and a bunch of other stuff >> this is the line that everybody is focused on, no matter what everybody else is. daniel dunn, "we're targeting total adobe revenue of $5.5 billion to $5.4 billion." nobody else cared about the other stuff. all this great stuff adobe is doing with a.i., all people care about is this one line >> i know, so sad. they're focused on the short-term it's terrible. you don't like that at all >> i don't like it when the guidance is the guidance there's more to it that's too belichick-like. not brady-like what was that? what was that brady thing? was that a dress rehearsal >> it wasn't good. >> no, it wasn't good. wasn't good at all >> he'll get better. when we come back, a bunch of other news. boeing, the largest labor union there going on strike for the first time in 16 years

live picture out of renton we'll get a live report from the pacific northwest. we'll get to other news in airlines like united and american gre ksty. upadofroger when we return in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there. when it comes to amgen's life-changing medical breakthroughs, every second counts. but without investment, those breakthroughs are often paused. citi's seamlessly connected banking, markets and services businesses, deliver global financial solutions. so our client can keep investing in innovations for patients around the world.

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going's machinist union going on strike for the first time in 16 years after rejecting the jet maker's latest contract offer. our phil lebeau is on the ground in washington state with the latest good morning, phil >> good morning, carl. we are outside the 737 max facility here in renton, washington there's no production going on this morning why? because these guys who are usually in working on a 737 are out here picketing late last night, the machinist union announced that 94.7% of their members who voted rejected the tentative agreement between boeing and the union not only that, 96% then voted to go on strike the deal included a 25% raise over 4 years time and again, i've heard from

members saying, that's not enough we thought we'd get closer to 40%. that's what they're looking for. so, 33,000 machinists have walked off the job this is the first strike since 2008, and for boeing management, it increases pressure to find a way to get a deal done the company releasing a statement saying, "the message was clear that the tentative dprwe reached was not acceptable to the members. we remain committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement." how long that will take remains to be seen as you take a look at shares of boeing, keep in mind that the estimated costs -- and they're all over the map, anywhere between $500 million to a billion dollars depending on how long this strike lasts the history between the machinists and boeing is not good in terms of resolving strikes quickly. the last one in '08 went 58 days on average, if you look at the last four, they go about 45 to

60 days depending on which strike you look at bottomis this, guys. the machinists want more than 25%. they'd also like to have the pension re-established i'm not sure that boeing will go that far, but 25% is definitely not going to cut it in the eyes of these workers who are on strike they want to get closer to 40% guys, back to you. >> you know, phil, i was watching your excellent coverage this morning, and there are some people who are very aggrieved, but i think it's almost like an existential crisis here. are we back to the days of william where the union was maybe the smartest union in terms of trying to figure out what the employees should get versus management? because i think there's this kind of underlying tone of calhoun made all this money and we're stuck making little money. is it really as visceral as some of those people you interviewed made it seem >> yes it is. i've covered this company since the early '90s, jim, and i have talked with many machinists over

the years. the relationship between management at boeing and the workers has never been strong, and it's in its low point right now, at least over the last 30 years. when boeing said they were going to open the plant in south carolina, a nonunion state, that really stuck in the craw of the union members here they felt like, well, this is the beginning. when do we know there's not going to be other plants opening in other nonunion states in this agreement, by the way, there is a commitment by boeing to build its next airplane, which is going to come out somewhere in the early 2030s or mid-2030s. that plane will be built here in the puget sound area but when you bring that up and say, they've made a commitment, they all roll their eyes and go, what's a commitment? there's nothing in writing there's no guarantee that boeing is going to do that. that gives you an indication of how the members feel about the relationship with management at boeing >> this is incredible, especially given the fact that the balance sheet of boeing

would seem to be very stretched by this, wouldn't it >> yes this is going to cost them tens of millions of dollars depending on how long this lasts there's no production going on will they deliver some aircraft that are basically built but not ticketed, which is essentially paperwork? yes, they will be able to do that but that's not a lot of planes so, the next delivery numbers that come out early next month, we'll see some of those planes in those numbers likely, but you're going to see a big drop in terms of deliveries depending on how long this strike goes on. they delivered 40 aircraft, by the way, last month. >> wow how often does leadership diverge from membership? i mean, you cover the autos as well, phil is this an uncommon thing to happen >> not uncommon. the only thing i can really compare it to is the relationship between the uaw and the management of the various automakers and look, they're not lovey dovy in detroit when it comes to the

uaw and the management of the so-called big three. that said, the relationship here between the machinists and boeing, it's been strained for a number of years. the strike in 1995 was brutal. it went on the, i think, 69 days, and it was -- there's vitriol coming from the members there. so, they've got -- boeing management, first and foremost, has to get this strike resolved. then, kelly orberg, the ceo, can go about trying to mend the relationship between management and workers, but job number one, get these guys back to work. >> phil, i imagine we'll talk all day about impact on suppliers and the war -- the ongoing battle with airbus and a lot more that's our fophil lebeau in washington state when we come back, cramer's "mad dash," countdown to the opening bell take a look at the premarket as try to add a little bit more to this 3% upside for the s&p back in a moment

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all right, we're going to get to a "mad dash," and then we get the final opening bell for the week as well a couple of minutes from now the banks have had a rough go of it this week wells fargo amongst them >> yes and i want to point out, jpmorgan has a piece today saying a significant new negative development for wells fargo, anti-money laundering issue is back. okay, first of all, no it's known it's been disclosed. nothing significantly new. then it talks about how it's surprising no it's not surprising. they have been working with the government on this what was surprising that the government came out and released it right now, but there's many banks that are covered by the same thing you're going to hear this about a lot of banks but this is an ongoing situation. so, the idea that you should send the stock down for a second day, i think, would be wrong when this stuff comes out, you think, oh my god, wells is back on the red-hot griddle, but they're not and i think charlie scharf has the situation well more advanced than what jpmorgan is saying.

that said, people are back disliking the bank, so the regulators are back talking a tough game again >> kind of what are you referring to specifically >> is citi able to raise its dividend without government compliance i don't think so >> citi is -- >> how about the td penalty? >> yeah, okay. all true i'm not sure that should matter, though, to goldman-sachs, morgan stanley, wells fargo, bank of america, or jpmorgan >> well, bank of america's mentioned in its queue about something very similar to this, that this is something they're working on shouldn't be surprised if something happens at bank of america. this is where the regulators are, but it's not surprising because it's -- this is something that has been ongoing. there's no consent decree. there's no slap. there's no fine. >> right and the -- i mean, listen, this week's performance is not about that it's been about those comments out of daniel pinto and a general concern about a recession, perhaps >> absolutely. it's all about, to me, when

pinto loa lore lowered the boom 2025 when he was freelancing i think the man was freelancing. >> at the big board, it is citi, celebrating hispanic heritage month and at the nasdaq, celebrating an ipo, mbx biosciences, focused on the treatment of endocrine and metabolic disorders. jim, i know you disagree with the nervousness on the consumer, and you have good reason if you reason to rh and some of the charts of cruiseline spend today. >> i'm so glad you got to rh this was the laugh i've been waiting for. they beat the numbers. they raised numbers. you start talking about plans everywhere from naples, i mean, beautiful place we're going to go to, david, in l.a., overlooking the water, what they're doing in europe. the veeck tctor

what i love about this is this man in the last three quarters has said, i know i'm out there, worst housing market ever, and -- but i'm buying back stock, i'm putting my money where my mouth is, and it's happening. and it was a remarkable quarter. want remarkable. >> the comps were down seven, but the guidance for july, august, and of course for q3, you're now into the double digits >> yeah, and the cadence you have just month after month getting better and better and better this was the quarter i have been wait -- gary has been waiting for, i've been waiting for i think gary is a remarkable visionary. picasso. i call him picasso because he basically says, listen, we got to industry things in order to be able to make it great i don't know if anyone's been to his rooftop in meat packing but one of the things he says is, this whole social media is ridiculous you're paying to buy the name of a competitor so that you get in the queue? he goes, we don't do that. we don't do instagram. he's so contemptuous of

instagram. i love it. he's his own guy he marches to the beat of his own drummer. this is an inspiring conference call inspiring, because what he says, basically, is, you break the rules, you can win >> some discussion today about gross margins inflecting positive >> oh my god, the inflection >> here's what friedman said on the call >> we feel very good about the business right now the inflection happened a couple quarters later when you're making big moves and big innovations like this, it's like i've said, it's not as much about the timing as it is the vector, and the increasing magnitude and direction of that vector, so i sit here and i think about, you know, the mix will begin to shift today, but we like where we are we like the demand that's unveiling itself we like that margins have inflected positive would have liked it to happen a couple quarters earlier, but

that's not really the point, right? i said so somebody, how many times has elon musk been on time when you're making big moves, it's really hard to be on time >> well, look, there's a lot of the calls devoted to people who are his heroes satya nadella. he said, think about the way that microsoft was destroyed and came back. he's got a lot of analogs. i find him inspiring i find things like when he says, look, things remain challenging, housing market needs to rebound, but the transformation of assortment is incredible, and he's really trying to do something very different what he's trying to do is make it so that you go to these incredible places, not galleries, not stores. there's no real word for where you go, but wow. you buy. and i just think he's going to have a remarkable rebound. people should be in the stock. i know i wish that my travel trust was in it. this is it this is it this is going to be big. big palm desert, california, opening in november. paris and london is going to be refreshed.

milan in 2026. he has grand, grand dreams, and he's hitting it perfectly. gary's real. >> now on to lingerie and bathing suits that you buy for your wife, which gets us to temu tee-mu do we know how to pronounce it i'm going temu you say temu >> andrew said temu. >> case closed >> that guy's never mispronounced anything >> i'm going to see clorox next week >> let me finish >> it's related. >> okay. oh, i know, because of -- right. chemicals and temu and everything >> no, kingsford i measure flammability by the kingsford index. >> why am i talking about this pdd, the company that owns temu, may be subject to new tariffs. there is something called the de minimus loophole, the trade provision that allows packages with a value of less than $800 to enter the united states with

little overall scrutiny. those shipments have skyrocketed since shein and temu took over in so many ways selling so much stuff, perhaps flammable, perhaps not, to u.s. consumers i think i'm seeing here, 140 million to more than a billion of these shipments, and so the biden administration is now talking about putting a new rule in there to basically curb them as well. essentially, a tariff. >> well, david, you know that they were a gigantic advertiser on -- >> on facebook, on meta. >> that's why i think meta is now $5 because people say, wait a second, they're pulling their horns, and i think that's true but it's an opportunity to buy meta because actually, those of us who have seen the ads drop know that it's not been a great source -- >> in the last quarter, they actually said they needed to market more at temu, which actually had a beneficial impact but you're right i think they've anniversaried at

meta, that quarter that was enormous where you saw that huge uptick because of the advertising you point to from both shein and temu as they competed here in the u.s. market shein is still waiting to go public maybe it's in london, if i recall >> political, political, at a time we're close to the election, people want to bash china. right there. people's faces >> yeah. of course. >> well, the other big news out of china, of course, is raising the retirement age for the first time since the late '70s and just a discussion about the box they're in where they clearly need stimulus, but the debt load makes that difficult and fending off deflation is a scary thing. >> i also know that there's always going to be these articles which say there's unrest there's no unrest. this is a military police state, and i think that what will happen is that it's just another thing that we read about that doesn't address the core problem that eunice yoon has so often talked about, which is the

trillions of dollars in bad loans. >> what do you mean, trillions >> we're scared of them. >> related to the property sector in particular "the journal" has done a good job covering they say, if you were to write down across the board all of the value of real estate as it needs to be, you'd get to some number, 15, $18 trillion, a number that is hard to almost conceive, but again, this does go back to, you know, so many people put many in property they don't have a social security system similar to our own, so people save a lot more in china saving rate is much higher but for a long time, it was putting the money into property. that has fallen dramatically, and then you had the municipalities that were able to sell land to help fund so many of what they wanted -- so many of the things they wanted to do, took on debt to do that, and now we're in a very difficult position because they can't sell the land to the developers. >> and they're penalizing the auditors, in this case, pwc, on evergrande that's the other big headline >> they were arresting bankers

the headline the other day was arresting bankers. they're doing a lot of things that are emblematic of what -- of going toward a much more extreme state. and i know that we have -- we continue to have talks with them, but i keep emphasizing that the money that they are -- should have put to property is going to military. trying to get -- intimidate us, and i just think that -- >> well, they also are still -- they are export powerhouses, they've always been, but even more so compared to, obviously, imports, given the lackluster consumer demand in the country we talk about it every day >> autos in europe >> they are autos and solar panels i mean, they dominate. dominate, dominate, dominate and batteries. and they will continue to. we may not let them into this country, and there may be others that choose to do the same, but -- >> you're spot on. i wish that weren't the case, but you're spot on >> the chinese control those markets to some extent >> and i think we ought to stay

on this. >> we'll talk about oil in a second, but chips as well, which brings us to jensen huang's appearance at the white house yesterday, talking about a.i. and the buildout nationwide, how much of a public-private partnership there will be with the government our megan cassella caught up with them. if you missed it, take a listen. >> we've got to make sure that everybody understands the need's coming, the opportunities of it, the challenges of it, and doing it in the most efficient and scalable way we can. >> absolutely. do you see the need for a federal rule here in terms of federal investment in combination with private investment >> well, there's probably going to have to be public-private collaboration in this area because the rate of growth is really quite high. although, artificial intelligence consumes a lot of energy to train, it also saves a lot of energy when you consume it, because ultimately, it's not about training the model it's about using the model >> covered a lot of ground >> yeah, look -- >> really interesting.

>> training, using, that's a really important -- i think the world of lisa su and amd, but they don't have as much training they have more inference, and what matters is that you just kind of have this vast catalog of things that is embedded when you get an nvidia chip it's not a chip. there's seven chips on a blackwell. we got to really -- it's an 80-pound machine super computer. we got to stop calling it chip >> put it all together and that's what you get. back to ellison's comments, though, and his as well. we talk about it every day power. power consumption and the need for it the fact that -- i mean, ellison did talk about having a team of ex-utility executives at oracle who were trying to figure things out, given how many datacenters they're building >> recommissioning >> jensen referring, as well, to the power consumption. >> we're recommissioning nuclear power plants we have to we have no choice. >> no. >> it's very exciting, actually, for those of us -- i slept next to a nuclear power plant for many years in sacramento when i

was resting in my car. no problem at all. i found it great >> you seem fine >> yeah, i mean, look, all i can tell you is it was one of the greatest times in my life. it was very safe >> that's a nice place, i hear very nice. >> you're -- that's mirage i'm talking about a nuclear power plant that was shut down because of hazards, and they said i could park there all i wanted okay i recall nothing uber shares rallying after announcing or bringing driverless waymo rides to atlanta and austin, texas, starting early next year this is very exciting. uber ceo dara khosrowshahi is with us now, exclusively, i might add, and dara, i think that this may be what we've all been waiting for, which is a notice which just says, look, it's not just california it's not just a town in arizona. it's big places that will be hailing, getting ubers and almost maybe expect that it's driverless

>> well, i think that we're incredibly excited that this great technology is now being -- is expanding, and we're incredibly excited to be expanding with waymo, whom we think is the leader in terms of driverless technology, and jim, this is really cool tech if you've ever taken a ride in a waymo, it is an absolutely delightful experience, and we're very much looking forward to introducing it to the folks in atlanta, austin as well. >> now, yes, i've been in a waymo, actually. i said, let's go to the best pizza place, it has a brain. but i wanted to know about what you're doing in terms of municipalities in phoenix, i couldn't go to the super bowl a couple years ago because once you went out of phoenix, you weren't allowed to be driverless. how are the municipalities handling what you want to do >> well, any time we expand into any city, we want to be in very close contact with the municipalities to make sure that we're expanding in a safe way,

in a way that makes sense, in terms of traffic flows, what their goals are. that said, our intention is to bring waymo and uber together in atlanta and austin in a fairly broad way. it will take time for us to grow but intention is for you to be able to get, you know, a waymo through uber wherever you live in those cities. >> dara, you mentioned the municipalities, but it's notable, of course, that austin is the home to a very large company called tesla, which has its own ambitions. did that have anything to do with the rollout there is it specific to the efforts they've been making there as well to accommodate these types of vehicles? >> no, austin is a big, fast-growing market. texas is a terrific state, and obviously, big market for us, so that was really the consideration. we were trying to find a couple of other markets to partner with waymo in, and atlanta and austin turned out to be great targets

for us >> to the extent you've seen some behavior of your consumer base already, what is the willingness of people to order an autonomous uber >> well, people are very open to it and we're seeing, actually, the percentage of accept rates, which offered an autonomous vehicle, going up generally. there are some people who aren't ready for it, but i think the more you see these cars on the street, the more you see how safe they are, how cool they are, the acceptance rates are going to go higher and higher, and we make sure, with our technology, to dispatch the car to you when there's a pickup zone or dropoff zone that's convenient, so we want to make sure that the experience is a top experience as well, and we think with that kind of experience, more and more people will want to experience autonomous >> dara, i'm guessing, at this point, for those who, as you say, might be a little reticent, you probably have some kind of 30-second pitch on what they can expect or how they should feel about it if they're taking a ride for the first time.

>> yeah, we tell them a little bit about the car itself, what the experience is like, what the pickup and the dropoff is like, and people are very open to it, and i think the you take a ride, and we're very much looking forward to the folks in austin and atlanta taking a ride, they will want to take another and another. >> dara, i'm curious about the underlying technology, and your thoughts about it. i mean, waymo and, i believe, cruise, have gone about it a bit differently, certainly than tesla is now in terms of very much focused on using generative a.i. to power whatever the latest version is. do you look at either of them and say one is better than the other? >> well, we look at waymo, and we believe waymo is the leader here their goal is to build the world's most trusted driver. there are different ways to approach the technology, but as you know, waymo was the original player here. they are very much focused on safety, and we want to make sure that any partner that we work with is wanting to grow this

business but build it in a very safe way, and we can't ask for a better partner than waymo in that regard. >> well, dara, i have the august 22, 2024, announcement between uber and cruise gm where you praise the chevy bolt deal that you have that's going to come out next year. does this mean that you think that the waymo technology is better than chevy bolt >> well, the announcement with chevy bolt was more on evs as well of course, we have announced the intention to work together with cruise i think that all of these technologies are going to bring a safer driver to the road, and it's going to be affordable and available to everybody, and hopefully people will truly start ditching their personal car to have a robot driver who's very, very safe, you know, take them to the places that they want to go that's ultimately what it's about, and we think that there are a number of companies out there that are building, that are building well, and are building safely, and we want to partner with many of the players

out there. >> you know, dara, i can remember having conversations with you years ago, i think, when you first took over, asking about this, because obviously, it's very important overall in terms of the cost and everything else that go into what you do. it's taken a lot longer than anybody would have anticipated, so where are you now when you really think about this becoming something that becomes, you know, more than a test site here and there? >> the technology has been difficult and challenging to bring to market in terms of dealing with all the circumstances that we take for granted that human judgment gets us through, whether it's a traffic jam or something happening with an emergency vehicle. that has proven to be a difficult technical task now, we do think, from a technical space from a software space, that's a task that is being solved by a number of players out there in the marketplace. now, it's time to take this technology that is working, that is improving, that will get

safer and safer and safer, now it's time to commercialize that technology and the commercialization requires, you know, high utilization of the cars, making sure that the repair, recharging of the cars, the fleet management and the city works and works economically, and that's what this partnership between ourselves and waymo is all about, because it's a cool tech, but we want to scale that cool technology, because i'll, i ultimately, it's going to make the street safer >> for viewers, dara, in philly, miami, d.c., new york, chicago, do you think announcements about those kind of cities are also in the offing in '25? >> well, i can't predict timing, but this is a technology that's going to scale, and hopefully with the regulators, with conversations with regulators, will be available broadly, both in the u.s. and globally that's certainly our area of operation and our ambitions are

global, so we think it will get there. but it will take time, and again, i would say safety first at this stage. >> dara, i just want to switch directions for one second. i'm on a lot of these consumer calls and you are just part of the conversation every time, whether it be kroger or any of the food companies, any restaurant chain, it is tacked ab talked about, look, people get it by uber you become the way that people get things how did this happen so quickly two years ago, i did not think that uber is the delivery company. >> for us, it's about the power of the platform. obviously, we started in mobility that was our core business, but we thought that we could not only get anyone anywhere but get anything to your home as well. we've been investing in uber eats, and we've also been investing in our membership program, right it's free delivery, discounts on mobility, et cetera, and we're getting a higher and higher percentage of our population not just thinking about uber as a place where you get rides but also get your food, groceries, et cetera.

it's taken some time, but the power of the platform and the brand that we are building on a global basis, it's definitely working now, and hopefully, we can keep building it in the future >> well, look, i got to tell you, i want to congratulate you. we need this we all were talking ahead of time, dara, we need this because you'll save this you will save lives and we have to be talking about it as a life-saving change that's our plan. i want to thank dara who runs uber and does a remarkable thing. great to have you. >> thank you very much >> you seem encouraged. >> we have to have this. you see the numbers waymo has, millions of miles, and how much more safe this thing is. it's really time that we realize if henry ford were alive and were to design a car, he would not have a driver. he would have this technology. drivers are flawed david, we have a podcast no one knows here. >> yes, jim.

you are correct. end the week on a good note. >> speaking about ending the week on a good note, dow above watch bonds as well, two-year once again with a yield almost the lowest in about two years. and the 10-year still below 3.7 as we await umich in about ten minutes. honey... but the gains are pumping! the market's closed. futures don't sleep in the after hours, bro. dad, is mommy a “finance bro?” she switched careers to make money for your weddings. ooh! penny stocks are blowing up. sweetie, grab your piggy bank, we're going all in. let me ask you. for your wedding, do you want a gazebo and a river? uh, i don't... what's a gazebo? something that your mother always wanted and never got. or...you could give

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humana. a more human way to healthcare. . jim, what do you have planned for tonight. >> i have mary dillon from nike. she's getting it not like starbucks, the moment they hired brian niccol the stock is up like 27 points i think mary does a great job and we'll find out everything including nike, how is hoka doing. new balance and adidas. >> you'll be busy next week. >> next week i'm going out to

san francisco for dreamforce i've got salesforce, i have arm, amd, broadcom. i've got t-mobile, workday, i've got elf, hp, okta. i'm going to do some stuff david, i'm going to -- what -- >> what do you got for broadcom? >> how about hot tam. >> you think he's yours? >>. >> i didn't say that it would be nice to have him here. >> sorry i have to go out to san francisco. he said it was a good quarter. the analysts looked at the december number and now it's up 15 in hawk i trust, period end of story. always have. can't wait to get out there. >> no sleep at all for you. >> i don't like sleep. how do you get 100 hours when sleeping it doesn't add up. >> we'll be relying on you bicoastal for the fed, for bank of england, bank of japan, general mills, darden, fedex. >> easy come easy go.

>> fedex i think is going to be an upside surprise like general mills, owe mplay i don't know netflix. extraordinary numbers we'll talk about that too i'm getting netflix. they don't know that yet i'm going to the front of their office. >> hand cuff yourself. >> jensen, how is the numbers. >> we can't wait we'll see you tonight. >> thank you. >> "mad money," 6:00 p.m. eastern time dow up 220 on this friday as the s&p looks for the best week since the middle of august stay with us (office chatter) is it me...or is work not working? at least, not the way it could work. your people are buried in busy work. and you might be thinking... can ai make it all work? can ai help your people work... without all the workarounds? feel better.

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good friday morning. welcome to another hour of "squawk on the street. i'm sara eisen with carl quintanilla and david faber, live as always from 900 post nif

the new york stock exchange. stocks rally, s&p up 0.4% and the nasdaq is up 0.3%. so for the week, we're looking at some big gains. the s&p up almost 4% on the week nasdaq is up more than 5.5% on the week again, rebounding from what was an ugly week the prior week. every sector is green right now. technology is one of your better performing sectors, although materials is up 1% energy up 1% industrials up 0.75% it's really a cyclical and commodity lead in the markets. the tech rally is helping. take a look at treasuries right now as well. we have seen them in a pretty tight range this week. the 10-year yield at about 3.66. that's kind of where it's been despite a little bit hotter cpi and ppi core readings. the 2-year kneeled just below 3.6. 30 minutes into the trading session here are big movers we're watching shares of uber rallying. the company expanding its partnership with waymo to bring

au town muss ride hailing to austin and atlanta the ceo joining, saying it hopes to scale and take it global. safety comes first adobe reporting higher profits and revenues but shares slumping more on what to do with that stock in just a moment oracle continuing its post-earnings rally hitting record high after record high. the stock on pace for its best week since june of last year also wanted to hit moderna because it's also adding to some of the losses this week as jpmorgan downgrades the name to underweight and a number of other firms cut their price targets after some announcements about r&d cutting yesterday. >> got consumer sentiment numbers out a moment ago let's get to rick santelli good morning, rick. >> good morning, carl. indeed there are surprises here. if we look at university of michigan sentiment and the related inflation survey numbers, remember this is september preliminary. it will change in a couple weeks. 69 on the headline better than expected much better than 67.9 in the

rearview mirror and that's the best overall level since may of this year. if we look at current conditions, 62.9 same scenario. better than expectedtations. sequentially higher than 61.3. best level since june of this year what lies ahead expectation, same scenario, 73.0. in the rearview mirror 72.1 best level since april. now the inflation numbers. if we look at the one year it's moderated from 2.8 to 2.7. but the comp remains the same. these are the lowest inflationary one-year survey levels since december of 2020. just like last month was here's one surprise. if we look at five to ten-year inflation it kicked up we're expecting 3% it's been 3%, one, two, three, four, five months in a row, now it's 3.1 that would be the highest five to ten-year inflation outlook since november of last year.

interest rates, it's been an interesting morning for sure because if you look the two-year note yield it's been falling faster than the 10s, making more steepness in the 2s and 10s curve. as we sit at 357 it's now down 7 on the day, down 8 on the week whereas a 10-year note at 3.66 is virtually unchanged on a day minus 1 and minus 5 basis points on the week. sara, back to you. >> thank you very much maybe near term expectations for what size of the cut will look like changing here that brings us to the discussion today, and i wanted to kick off with a quote from bill dudley, the new york fed president, who has really been leading the charge outside the fed he stepped off a few years ago and now he's getting more vocal. he said that he thought they should cut in july and changed his tune because of the weakness in the labor market. now he's coming out, quiet period, ahead of the fed meeting next week saying there is a case

for 50, a double he clearly has concerns about the labor market and wants the fed to do the front loading. up until today it was baked in that 25 basis points cut was going to be what's happening, and that's still the -- i think the base case, but there are increasingly -- first of all a number of wall street firms said better to front load and go 50 you've been tracking those. >> bmo, jmp, citi. >> claudia sahm. >> increasing number say front load if we want to adjust it and worried about the labor market then go 25 right now, the odds in the market 50% that they go 50 after cpi it was 14% so the odds have increased as the calls have gotten louder and i think dudley is someone influential because he spent so long on the new york fed he said that this morning. there are signs also that the fed can go i mean if you listen to rodney mcmullen, ceo of kroger, talking

about the consumer, he pointed to some changes and not just at the low income listen >> the customer on a budget is under a lot of strain and we're even seeing that customer even making more pronounced changes in terms of when first of the month and when they have money they would be stocking up, getting bigger packages of product of stuff as you get to the later part of the month they would be doing things to stretch their budget in smaller sizes moving more to our brand products, those types of things. the thing we are starting to see that's a little bit of change is really the middle customer is starting to make some of those changes as well. >> the middle income customer making some of those changes remember, guys, what fed chair powell said a few weeks ago at jackson hole, the last big public comment he said i pulled out the quote for you "we do not seek or

welcome further cooling in labor market conditions. he says it seems unlikely the labor market will be a source of elevated inflationary pressures any time soon as well. if they do not seek or welcome any further cooling in labor market conditions, some economists argue, okay, so go bigger people aren't going to be worried that the fed is more worried than the market. that's been negated because they get the same information we get. others say the economy is not in such a bad shape no real urgency to go double it's an interesting debate that they're going to have inside the fed and all we've gotten from them in terms of commentary on this is they're open minded about the size people like waller who lead. powell doesn't sound like they've ruled it out, but i'm not sure anyone is advocating for it. >> and okay, so front loading, what is the -- what is the strategy behind that >> the strategy is if the thinking is that the rates are too tight and they are hurting

the economy t go bigger to have more of an impact. 25 is already baked in to the market go a little bigger, send a signal, and make a change. monetary policy hits the economy with a lag we felt that since we're just starting to get the real weakening after they were hiking for all of 2022, and so going bigger always makes it sue herrera -- easier to preserve the soft landing and not have any more weakening in the labor market are they going to be able to do that perfectly, they don't know. that's one of the arguments for going double to make it easier to have the cushion. import prices, they were negative 0.3% in august. that was a bigger drop than expected and further evidence that inflation is in the rearview mirror. energy is a big part of that energy prices are low. but if you take out energy it was still a negative number on import prices and something we're watching into the election as well because with the tariff

debate front and center, those import prices could become a problem and more inflationary down the road. >> if you were to go 50, still unlikely, of course, does that mean there's a lot more focus on whether you get another 25 immediately in the next meeting? >> do they keep going 50. >> yeah. >> do they take it down to 25? we don't know. we don't know the day dense because it's not a normal cycle. they're not easing into a recession. maybe why the goldman sachs chart on stocks is interesting today. you've been hearing first cut bad for stocks turns out first cut not bad for stocks if we're not going into recession. most of the time when they are into an easing cycle there's a recession and that's when the market and the bottom line sells off. but when it's growth scare or normalization, you could argue is the kind of environment we're in now, most people don't think we're going into a recession, it's much better it's a funky cycle and setup

that we're going into for this federal reserve and there are arguments on both sides of it. it's going to be interesting to hear him. >> it will. >> and to see if he gets the consensus. the other thing around the table if he wants to go 50 a rare interview you do not want to miss with john paulson, so much more on "money movers." he's going to join us at 11:00 a.m. eastern really looking forward to talking to him, especially about the economic policies up for debate in this election. >> meantime, stocks are hitting the best levels in about a month as sara says a make or break week as investors get ready for the fed to cut rates our next guest is cautious the rest of the year joining us is daryl kronk, wells fargo cio for wealth and investment management, target of 5200 good to have you. >> thanks, carl. >> why the caution >> we just think we've front-end loaded a lot of gains for this year and we do think the fed has to get going if, you know -- they should have went in july in our opinion,

they didn't, so now the question about 50 versus 25 real rates are too high. if you look at real rates as inflation has come down, they're at the highest point in the fed tightening cycle they've been which are grinding on the consumer what you were talking about before the neutral rate you can debate where our start is let's say it's 3 if they come down 125 basis points this year you're at 4 to 4.25 still 100 to 125 basis points above the neutral rate no reason for them to wait the delay, the risk is they're transitory on both sides they were transitory too late on inflation, now they're going to be transitory and too late on the growth slowdown that's happening live as we speak. >> so you think this is going to start to get reflected in earnings >> i do think it's going to start getting reflected in earnings we already see q3 numbers coming down to the lower end of their range, right you got five of the 11 big sectors sitting on the lower end of the range just juxtapose these two things. show me a time in history where

you've gotten ten plus fed rate cuts and earnings have grown 15% the following year those two things don't coincide. something's going to have to give there one way or the other. you will get the earnings growth of which you don't need ten plus interest rate cuts or you're not going to get the earnings growth and they're going to have to start cutting. >> isn't it your suspension we don't get the ten like we didn't get the six in january of this year >> the bond market has tried all the way along to job own the fed into getting what they want. the reality the three month to two-year, not two to ten year, but three month to two year is 135 to 140 basis points inverted still. right. so the short side of the yield curve which is more signal than noise, the long side is more noise than signal, is telling you the fed is behind the curve right now. >> so playbook then looks like what you go ultra defensive or -- >> no, i think you can still stay with equities but you're seeing the rotation into more defensive sectors. it's clear, right.

if you take just simply consumer discretionary which is a lag for some time on a technical and a relative basis, and now tech is starting to lag on a technical and relative basis as well, those pro cyclicals, minus some of your energy and industrial and those type of places are starting to tell you things are slowing down quickly back to the labor market conversation the last three months non-farm payrolls 116,000 new jobs. we know labor is a lagging indicator. the year is 204. last year 251. 2022 was 377 you can see the breadth of the slowdown happening in real-time in front of your eyes. >> sounds like you think earnings expectations are too high where are they too high in particular in cyclical? >> particularly in the top-end loaded tech side of things we think. you're going to come in probably this year around 243, 245. next year's expectations are 270. right. which gives you the 50% growth

that has to come down. we think that number probably needs to be lower than where it is today. >> did you see this chart i showed of goldman sachs? like the cutting usually happens into recession that makes sense if it happens into normalization and soft landing, then why can't you get earnings growth with fed cuts >> let's be clear. you can get earnings growth. we just think it's not 15% right. it's -- 15% is a year like we haven't seen in many, many years, so the idea that you're just going to get that in a world where margins are starting to roll over if you look at operating margins starting to roll to the negative side, stocks will treat you well when operating margins are expanding, when they're declining they won't treat you well historically. >> which is why we're sort of gazing to see if we start to see restructuring, head count as corporates try to preserve some of those margins the only thing i would add, atlanta fed tracking q3 pays

2.5. >> we think it's probably just under 2 but still a healthy quarter. i think you need to watch the real-time slowdown in what's actually happening i mean, so again, consumer expectations came in good this morning. think about what's happening, we have 21 of 22 months in a row where manufacturing has been below 50 in contraction, 29 months in a row where l.e.i.s are declining which we talk about l.e.i.s and the false positive it sends. recession risk we don't think is the base case but recession risk is about the data you want to look at to sara's earlier point and makes this cycle so confounding and confusing, right, is that you can find the narrative of the story wherever you want to find it. right. i think the important thing is watching the data in real time and what's happening and remember, labor is a lagging indicator. it's not a coincidence indicator, not a leading intds cater. be careful. >> jobless claims are not lagging indicators and they look good. >> jobless claims have been flat 15 weeks in a row. essentially flat

minus a thousand sg. >> the four-week average is lower than the summer. >> skewed by immigration and that stuff you need to watch what companies are saying they're your best real-time indicator telling you they need to start thinking about reducing expenses, and they need to start probably laying off workers. they're not seeing the topside demand growth they want to see and the pricing power that they had and enjoyed over the last couple years. >> that's a good primer for viewers ahead of next week thank you. good to see you. >> bearish today, daryl. as we head to break our road map for the hour a stealth rally going on in a number of tech names today we'll tell you which one and speak to an analyst who named one of those stocks a top pick. >> boeing workers on strike. we'll head to renton, washington, and give you the late sgles mortgage rates lowest since february of last year. we'll talk about what's ahead for house as the fed gets ready to cut when "squawk on the street" continues.

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session highs here dow up 260 tech is staging a rebound. the best performing sector on the week and we turn to dom chu. >> so carl, if you take a look at that nasdaq 100 trade, the large cap stock within the nasdaq index it's been impressive the move we've seen i'm putting up the qqq trust to give you an idea

over the last week this move here has been roughly 6% so it's been a decent bounce off some of the recent lows we've seen with regard to the components that are kind of driving some of the action there if you look within that nasdaq trade, one of the next charts i'm going to show you will show you over the last week, where the best performing bounces have been and it's thematic. if you look in the last week in the nasdaq 100 it has been arm holdings, broadcom, and nvidia the three best performing stocks in the nasdaq 100. all chip stocks. if you take a look at the next three best performers in that next 100 trade it has been super micro, marvell and amd the six stocks have been the bests about bounceback performers as where you're seeing the relative weakness develop overall in adobe shares, workday shares, and fortinet, some of the under performers in the week-long 6% move in the nasdaq 100. something to keep a close eye on

there. if you look at the magnificent seven, the megacap tech trade, the outperforming stocks with the net trade overall have not been apple apple has been one of the under performers, only up about a per percent. it's been nvidia, amazon and tesla, the three magnificent seven stocks that have staged the biggest one-week gains within the nasdaq 100 trade. i want to give out an honorable mention and winner overall oracle on a year-to-date basis that massive move that we've seen 57% accentuated by the earnings report we saw just over the course of the last couple days of this past week, oracle shares again getting a lot more positive analyst commentary and the revisions to its revenue forecast all driving a massive move higher. keep an eye on oracle as well, guys, david, i'll send things back over to you. >> thank you of course that was a good place for you to end and us to start, oracle, because as you saw it's been on a tear, in fact, this week as well, reporting earnings

and financial analyst day and as dom told you, up over 55% this year the second best technology performing stock behind only nvidia our next guest called the stock his top investment idea. joining us is bernstein's mark murdler, outperform rating on oracle, raised the price target to 201 what a week it's been, mark. why do you feel there's more to go here? obviously, i mean i still remember the call. larry ellison sees data centers as far as the eye can see. >> it's very impressive. this has been a hidden story for a while, as oracle has been shifting the whole business to the cloud, and they've been building out capacity, but weight interesting is they build stuff that's very different. their is pass capability is differentiated from the big guys, microsoft, amazon and google and because of that, they are growing faster than their peers in the market space.

why do they keep doing well? because the company last night or yesterday raised their numbers meaningfully they raised the guidance for 2027 and it could have 2029 guidance showing that they're going to -- in the last two of those years they're going to grow 16% year over year revenue growth and that in 2029 they're going to have margin improvement year over year ets growth over this is a business that is accelerating and the street doesn't fully believe that they haven't they believe oracle was one of the losers in the cloud for a period of time and people are not sure i think as we go through in a market in which the rest of software is not doing that well in which macro is impacting many of the growth names and the growth names are slowing for natural reasons in which the businesses have saturated and for many reasons these traditional companies decelerating and oracle is

accelerating that's going to shift the focus. >> right all right. you write i think in a recent note there's a lot of innovation going on at oracle this is, obviously, after having attended numerous key notes and presentations at the oracle world cloud conference what would be a sign of the innovation is not still fully appreciated by investors >> so oracle is basically made the cloud available anywhere if you are going to use the big three, microsoft, amazon, google, you have to put it in a data center often the size of a football field on the other hand, oracle is building their oracle cloud data centers, yes, they can be really big, but they can be in sovereign footprint for individual countries, for individual companies, give you the full capability of cloud i pass running in three racks. they can run it on a cruise boat if they wanted to. so the flexibility is significantly differentiated and

it's going to take a lot of work if the big guys decide they want to move into that part of the market. >> i ask about adobe you cover and have an outperform rating and not do too hot on that guidance does that change anything for you? >> i mean, the optics of the guidance is not very good. the argument that management has been making that the business would accelerate in the back half of the year and that would -- they would imply it would grow faster next year, they're guiding for a weak q4. and the reality is there's a lot of one-time events that are driving that and that's going to weigh on the stock until management is able to prove that those really are one-time events and that the business is truly accelerating on the other hand if you look at the market inwhich most of software is decelerating, adobe at the current rate of growth given their margins and everything else is not a bad

investment for the stock to really work they have to show acceleration everyone is going to look at their max conference and hope we're going to get some information there. or it may take a couple quarters in which the stock is in the penalty box. we're looking on a longer term and we think it will accelerate. >> mark, appreciate your time. thank you. >> my pleasure. >> watching boeing shares as well under pressure as the company's workers go on strike let's get to phil lebeau on more on what's ahead in the show. >> hey, sara here at the bogey plant in renton, washington, they are picketing, not building 737 maxes. which raises the question, the longer this strike goes, how much pressure will it put on the bottom line for boeing we've got numbers to discuss when we return after this commercial break but without investment, those breakthroughs are often paused. citi's seamlessly connected banking, markets and services businesses, deliver global financial solutions.

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they build the 777 and the boeing aircraft. here they build the 737 max. a rundown in terms of how many people are on strike, how many voted for a strike and what the financial implications are for boeing the vote was held yesterday. we heard from a lot of machinist in line no way i'm going to vote for this, and that was the case when you look at the final tally, 96% voted to walk off the job. 93.6 rejected the contract between the union and boeing the main issues, pension and pay. they would like to see the pension restored and they want more pay the 25% raise over four years that was agreed to, that's nowhere close to what the machinists were looking for. here's what a few of them had to tell us earlier this morning in everett, washington. >> i've been here for 27 years and had our pension taken, had everything taken away from us. we had stagnant wages the last 12 years and we're trying to get what we

lost in the back. >> we haven't gotten a raise in so long. i've only been here five years and i've worked with people wh have been here over 20 who have gone through their house getting repossessed after a layoff, but they're still here. >> the magic number that i heard, number of the machinists in terms of what they would approve, at least 35%. many of them said we want 40%. i'm not sure they'll get that. when a deal is reached how long will the strike go on if history is any indication we could see this last quite a while. the last one in 2008, 58 days long the other ones in 2005, 95 and 1989 anywhere between 45 and 65 days. 70 days. somewhere in that range if history is any type of a guide there. as you take a look at shares of boeing which are at a 52-week low, boeing's management released a statement saying it

is ready to get back to the bargaining table we will see when that happens. cost implications, jefferies is estimating a $1.3 billion hit per month in terms of free cash flow let's see how long the strike lasts. if it's resolved next week the impact will be less. back of the envelope math every 737 max that is delivered probably delivers about $10 million in free cash flow to boeing they deliver just over 30, $00 million -- 300 million if it were to last a month that would be the financial implication. >> that's painful. phil, you mentioned management so they have a ceo that's been on the job for what like a month, and he's leading this >> yes. >> was brought in to fix the quality control issues, but this is a more immediate challenge. >> well, he knew this coming in. this is not like kelly orper got

here and said the contract is expiring he knew coming in and said it's going to be a hefty price tag to ultimately get this resolved he's motivated to get this resolved he doesn't want this to go on. that said, the union is very adamant it wants at least 35%, all of them saying 40% as i mentioned earlier i'm not sure, my sense i'm not sure they get to 40% 25% that's not cutting it for the rank and file. >> meanwhile, phil, as far as orders and market share go, as far as the regulatory concerns the last couple years, a lot wriptsen on how air bus has not been able to leverage that does this change that? >> they are in the lead. if you go back and we've done the calculations and had a consulting firm that tracks the aviation industry, the airlines, they ran the numbers for us, and air bus now is the market lead

ter in narrow bodies they used to not be the market leader the last several years between the stopped production because of the 737 max crashes, the quality issues, and look, production is limited right now. the faa will not let boeing build more than 38 737 maxes once production resumes. will it happen in the next year or so sure i would expect that to happen. they are behind air bus in terms of market share when it comes to narrow body planes. >> phil, interesting so many moving pieces and your coverage has been incredible that's our phil lebeau watching this new strike. let's get a news update with our bertha coombs. hey, bertha. >> hey, carl russia has expelled six british diplomats today after accusing them of spying the uk called the accusations completely baseless and said the move was linked to a may decision to limit moscow's diplomatic activities in london.

tensions have been rising as the west weighs whether to allow ukraine to use long-range weapons in its war with russia a move that russian president vladimir putin says would put nato at war with moscow. nebraska's highest court cleared the way this morning for competing abortion measures to appear on the state's november both both proposals change -- both propose changes to the state's constitution one measure would enshine abortion rights while the other would enshrine the state's 12-week ban. and china decided today to raise its retirement age for the first time in decades as the world's second largest economy is struggling with falling birth rates and an aging workforce according to government officials, over a period of 15 years, the age will go from 60 to 63 for men and from 55 to 58

for women in white collar jobs and 50 to 55 for women in factory jobs here in the u.s., full retirement age now is 67 back to you, carl. >> thank you very much still to come today, mortgage rate at fresh lows ahead of a possible rate cut from the fed next week we'll talk about what investors need to know and what it could mean for an under performing real estate sector as we're for a moment there about 1% ay omllime highs. stay with us it will take billions of solar panels to power the world today.

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checking in on stocks about an hour into trading s&p holding on to gains, 0.4% higher and that is every sector that is green right now except for information technology why is that being dragged down it's adobe down 9% nvidia is also up by 0.6%. there's a big weight there most of the other tech names are higher and it's material, energy, financials and industrials in the lead.

some of the cyclical sectors communication sectors having a nice 1% move higher as well and the median names continue their rally. as carl said we're 1% from record highs on the s&p 500. despite a little bit of weakness popping up in tech yields lower and that may be part of the trade. dollar weaker as well. odds of a double 50 basis points cut rise today into the fed meeting next week. less than 30 minutes away from a rare interview, john paulson will be with us on "money movers." he gained fame for his $15 billion profit for betting against the u.s. housing bubble in 2007. the trade dubbed the greatest trade ever greg zuckerman of the "wall street journal" wrote that book. he joins us, paulson, at 11:00 a.m. eastern, to talk about the election, what's at stake and the economy and much the average rate on a 30-year mortgage falling to levels last seen in february of last year according to data from freddie mac as the fed gets ready to cut

rates. here with her take on what it means for the housing economy, diane swan, kpmg chief economist. welcome back it's great to have you are these lower rates spurring activity in a way that you would think? >> you know they haven't yet we've seen it in new home sales where builders are also offering buy downs, mortgage buy downs still, and they've also moved down scale in terms of pricing to be able to tap into that pent up demand among first-time buyers we've got 12,000 millennials a day turning 35 moving into their peak home buying years and there's demand there that said we've not seen the reaction we had seen earlier in the year every time the mortgage rate dipped, people flooding into the market. part is people waiting for mortgage rates to fall more than they have on the hopes of rate cuts by the federal reserve and another part is the affordability equation got worse with higher insurance costs as well i think that's very important to

keep in mind, that it's not just interest rates that are hoeltdsing people out of the market at this stage of the game, we've seen a lot of appreciation in home values that's slowing it should be showing up more in the inflation data in terms of rents, but that is one thing the fed is going to be weighing, as we go into this meeting next week >> clearly both campaigns are seeing in their polling data that housing is near the top of the list on affordability issues right now from kamala harris' camp, 25,000 down payment support for first-time home buyers, 10,000 tax credit. do you think this is the kind of thing that will stimulate it >> well, what we really need is to change a lot of zoning laws and that's where the crux of the problem is we've been under building for decades in this country, and it's been because of a constraint on zoning some of the most affordable housing that tends to be the ladder up two to four, that in

the 1970s hits 143,000, in 1972, last year those the ladders that get many people on to the rungs of home ownership, those were only 14,000 last year and that's because of the zoning situation that we have in the u.s. and not in my backyard zoning laws we have. >> so you think it's a supply issue? actually, that's more of what president trump has been running on, deregulate. >> it's more than deregulation it is the zoning issue it's all done by local, state and local governments. this was an effort to limit density and i think that's very important to understand that this is not something you can waive a magic wand over and control alone from the white house and that's very important. there are a lot of proposals out there. what actually gets enacted in terms of proposals depends on

congress and right now the chances of congress being sort of one side or the other are pretty slim. we're likely to have a split congress but i think more importantly, is we have an affordability problem that is a supply problem we know that we know that it is bothering people it is a huge problem in terms of building wealth for a whole generation, if not two generations of people and that's one of the reasons millennials are not as happy as their predecessor because they want to buy and own a home, but the zoning problems are really very much state and local problems and i think that's the issue and that's where we're sort of dancing around and there is no magic wand. >> diane, for the generation that has built a lot of wealth in housing, largely boomers, of course, and gen-x, i wonder one thing that comes up lately the degree to which the ability to tap into your home equity is going to be a thing to support consumer sentiment or spending do you have a take on that yet

it's still early days. >> actually we have seen helocs pick up. the new york fed had a good piece on this. over 50 well off households. what their tey're doing is whate millennials don't want them to do, adding on to their homes to age in place that was going on prior to the pandemic it extends and accelerated by the pandemic in some of the -- you saw in terms of shortages and also the dangers that seniors felt about going into more assisted living those are all important things as well because heloc have picked up helping to support spending consumers have gotten much more discerning in their purchases but not defeated and helocs are a part of that. >> what should the fed do next week are you in favor of a 50 or 25 >> well, i've been in favor of a 50 basis point cut for a while now because the labor market is weakening and powell wants to

nail a soft landing for his legacy we never done -- gotten a soft landing on the wake of a blistering bout of inflation this is unprecedented and would be legendary the window on that is beginning to close it's still open. and my own view is it would be great if the fed could walk through it i'm not sure he's got the votes to corral the cats to actually get to that 50 basis point cut at this meeting given how strong the economy still is my argument is, a strong economy based on discounting that's a soft landing. >> diane swan, good to see you thank you very much. from kpmg. coming up after the break, cnbc out with its latest retail mbs anwel t meso nuerafter this nion. you do it when you're looking for a contractor. you definitely do it with medical advice. so why not with your stock market investments? we can help you see opportunities

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cnbc's latest retail monitor giving fodder for the bears this morning. to steve liesman with some numbers. >> carl a little bit, we had a strong july in august closer to the running average of our cnbc and our retail monitor which we have mixed results from the 12 different sectors we track you can see the retail monitor we poured it with actual credit card spending data from affinity solutions, total retail solutions up by 0.5, 0.45 if you want the nitty-gritty details with 0.7 in july that's around the one-year average for the series up 2.1%. core retail take out restaurants as well increased 0.2 down, again, from a stronger than

normal july which was up 1%. year over year rate up 1.9, compared to 1.7 in july. the sector breakdown shows results mixed. seven of 12 categories on the plus side that compares with ten of 12 in july. this month clothing and accessories up strong, restaurant nonstore retailers electronic and appliances was on the downside for the second month in a row buildings and garden supplies, sporting goods, music down big that partly reversed a big gain last month nrf economists in their commentary saying sec toerl trends showed continued softness in consumer durables due to housing softness from still elevated interest rates. shows consumer spending trending higher in consumables, food, clothing and eating out. a mixed picture. the retail monitor settling down more towards the average right now. that echoes awe lot of economic data we've seen that looks to be moderating, but not necessarily

crashing but creating those worries among markets and economists about the uncertainty of where does it all settle down? so, a key to the outlook i'm looking for is watching discretionary items. watch those sporting goods and electronics categories continued weakness could say, yeah, there is stress among consumers but there could be relief coming in the form of lower gas prices in the months ahead, lower interest rates and continued wage gains guys >> yeah, maybe why consumer confidence was a little higher this month as well, as we get to the top of the hour. steve, thank you very much ahead of retail sales next week. check out the biggest gainers this week on the s&p 500. a lot of the stocks that had been hit hard the week before, and a lot of them in the chip sector broadcom is up there, 21%. nvidia up 16%. oracle had a great week, up 16%, at a record high more "squawk on the street" after a quick break.

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>> good morning to you look, this report today announces latinos make up 5.05% of the fortune 500 corporate directors. that 0.05 is very important. they say every latino matters. but it's scant improvement from four years ago when the first report was released showing 3% on corporate boards. that's in spite of the fact that latinos are the fastest growing demographic, accounting for purchasing power of 3.8 trillion, and on track to reach gdp of $5.7 trillion by 2029 lowe's, ford, brown foreman, harley-davidson, molson, coors are the companies that announced an end to their programs that ens enequity inclusion policy. will that undercut efforts by the latino corporate directors association, which has been working for more than a decade to improve representation? >> we're very adamant to ensure

the conversations we have with corporations, ceos, is a business conversation. it's not about di, it's not about having one more latino on the board to check a box it's to ensure they have access to incredible talent that is latino, and also encompasses what today america is and what america is going to be in the future, which is multicultural >> one interesting tool they're using now, a.i. to identify latino talent and broaden that pool of candidates for corporate directors. they say it's been very successful, sara >> okay, contessa, thank you very much. tracking it live from san diego at the latitude conference. don't miss famed investor john paulson with us next hour on "money movers," which comes up after a quick break ♪♪ ♪♪ citi's industry leading global payments

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betting against the u.s. housing bubble in 2007 he'll join us from the new york stock exchange in an extended interview you will not want to miss. the white house is out with new rules targeting chinese e-commerce companies, specifically shein and temu. we are live on the grounds outside seattle where boeing workers just went on strike. meantime, trying to get back within a percent of all-time highs. s&p, 5625 or so. the dow is up almost 300 got decent yumish numbers today. mike santoli, i wonder, mike, if we can do a redex of the october growth scare. >> it seems as if the bulls are asserting that actually coming into the week, i felt there was a little bit of an effort to map the experience of august onto september, front-loaded weakness. you had a mini panic in the market, somewhat associated with the jobs report from the prior month that created uncertainty about soft landing, whether