yesterday. and miami dolphins owner steve ross is reportedly nearing a deal to sell the team after monday night's game, i think i might try to sell a stake, too it's thursday, october 3rd, 2024 and "squawk box" begins right now. i think it was $10 good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is off today. let's take a look at how things are shaping up on thursday morning. you are seeing red arrows. s&p is down by just under 20 points that comes after the major averages ended yesterday's

session above the flat line. you can see for the week right now, we're actually in negative territory for the first time in quite a while. still two trading days left to govern go there's the treasury market. .25% for the dow the ten-year yielding 3.8% overseas, you have mainland china with markets closed for the golden week holiday. in hong kong, stocks closed lower by 1.5%. with the decline, the hang seng index is 21%, that's right, 21% since china's government announced stimulus measures a few weeks ago. mainland china markets will reopen on tuesday, october 8th that's since the 23rd of september that you have seen that 21% climb that's a lot really fast >> the golden week holiday

>> sounds pretty good. >> that's got some merit are you off the entire yeah just saying. what should we base it on? first, let's schedule it and we'll figure out. >> august? >> figure out a reason. in japan, the nikkei closed higher 2%. prime minister ishiba said the current environment would not require a higher interest rate hike in an attempt to shake off the reputation as a monetary hawk ishiba met with the central bank governor yesterday since the election, you saw significant moves there and concerns of him being a hawk and that played out with a lot of ways with the yen going higher these are all things david tepper talked to us about. openai has closed its long awaited funding around and the

valuation of that company is $157 billion it raised 6.6. that's what it comes out to. 157. a year from now, will they raise money at 300 billion nothing knows. openai did not name investors in the round, but a source told cnbc it was led by thrive capital and from existing backers microsoft as well as nvidia, softbank and others. the financial times said openai made it clear it expected an exclusive funding arrangement to avoid startups like anthropic or x a.i. kate rooney will have an interview with the openai cfo sarah friar. not to be confused with kate

rooney-vera. that doesn't happen every day. i don't know she's been on set. >> not in a long time. >> that's coming up at 10:15 eastern on "squawk on the street." >> that's a really weird requirement to say you're not an laws an law allowed to invest in our come p p competitors. >> are you with us or against us >> give us your money and don't give to anybody else >> exactly we can all be on the same page openai let's go lfg. >> what does that stand for? >> i see that all the time i like it. don't you? >> i don't see it all the time. >> you know what i'm saying? >> i do. >> you can figure it out >> i did

lol. >> land o'lakes cheese why is this funny? >> you mentioned nvidia. a backer in openai nvidia shares moved higher after yesterday's closing bell that's when ceo jensen huang talked about the processors in the interview with jon fortt >> blackwell is in full production and blackwell is in full demanded and insane everybody twowants to have it first. >> blackwell boosts 2.5 times the power in chips this is the case where jensen huang can set a lot of the guid guidelines openai can't invest in everybody else, jensen huang has to decide who to give the chips to with

the demand shares of levi strauss are falling hsharply. beat expectations by two cents the comp the c the company trimmed revenue guidance a big drag on the results is the dockers brand. sales fell 15% the company is now considering the sale of the brand. it tapped bank of america to lead the sale process. shares are down close to 12% now toyota is the latest to push back the production of the electric vehicles in north america to the first half of 2026 amid slowing sales according to the report from the nikkei news service. plans for the three-row electric suv in kentucky in 2025 have been delayed several months.

the delay due in part to ad adjustment in the vehicle design the report says toyota canceled plans to produce electric suv under the luxury brand in north america. it will ship finished vehicles to north america from japan which will be tariffed maybe. a new report in the wall street journal reports that elon musk's financial support for republican causes has been more extensive and it started earlier than previously known. the report cites people familiar with the matter that musk gave tens of millions of dollars with ties to trump's candidates that report said musk used a limited liability company or dark money groups which are exempt from disclosing donors.

commodities exchange kalshi has resumed taking bets on the 2024 congressional elections the move came after the federal appeals court in washington, d.c. listed the legal freeze on the futures contracts yesterday. the court rejected an effort by the ftc to prohibit taking bets on which party would control congress the lower court gave bets, but it was on hold the cftc failed to demonstrate that the public could be harmed while the appeal was being heard. >> russ bennett made his case here on cnbc he said it is a way to manipulate elections and there's no way to see who is making the money and placing bets he was looking at it as part of

his purview. that's all he talked about last time he was here. >> that would be the tail wagging the dog. i guess it's possible. >> also a way of looking at market manipulation. >> maybe market manipulation of the contracts themselves i don't see how you can gain -- how many seats are we talking about? a six or seven seat difference right now. i guess you could focus on one i don't know >> it's an interesting way to look at things when you are not allowed to talk about exit polls. >> the way polls close when we come back, it is jobs week in america >> what? >> we'll talk to portfolio strategy ahead of the numbers tomorrow big jobs friday. still to come, we get a real-time read on inflation in america from restaurant owner cameron mitchell

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everybody. dow futures off 150 points nasdaq down 92 points. the s&p down 20. joining us right now is kathryn rooney-vera. we are looking at the jobs report where is the market valued at this point >> they absolutely are they discounted the perfect scenario not the soft landing, but the perfect outcome. i think inflation expectations are too low. supply and demanded will probably push oil prices higher. if i'm rideght and oil surges, e could see a push higher 1% year

over year. >> that's before you factor in the stoppage at the docks? >> correct absolutely in, i if, in fact, we get a surge, you have a risk recession which is not nothing and risk acceleration with the overheating of the economy potential growth in the united states is 1.8% the third quarter growth is forecast at 3% we are growing at 2.8. there is inherent risk from that perspective. add to that monetary and fiscal easing as well as upside potential and commodity prices china is engaging in the bazooka stimulus if they pull it off >> those opec guys lie, i think. $50.

i think that's just -- that's massaging the members to not cheat. >> it's also warning that saudi arabia is going to pump, pump, pump and not lose market share at this point. if you cheat, look out >> a lot of oil here i like to totally cut them off at the knees in power, at some point. wouldn't it be nice? >> they have been much less relevant. >> good. >> kathryn, goldman and someone put out a note of the year-end target of 6,000 was too low. seas seasonally, you get through the election and you have ia relief rally with the knowns. >> he's not wrong. momentum is to the upside in the near term. i won't discount we get to 5,800 or 6,000 by the end of the year.

that doesn't mean we don't see risks in the offing. becky, when you see complacency at this level, with the vix and with the vix drop, that makes hedges cheap you want to be deploying those when the markets are pretty exub exuberant. i would say protect your gains our top pick is utilities. it performed year to date tech at this point, what we recommend is take the profits. gold has done remarkably well. it is looking overbought at this point. i do like protecting your gains going into next year, especially with this level of complacency in the markets >> healthcare, is that contingent upon either party winning or is it not necessarily

where you are looking at big drug companies >> it is a play on the valuation. going into the election, we have never seen the markets reaction positively a moonth before the election my team has look ed at the numbers. the s&p 500, if it is up three months before election day, the incumbent party wins it does play into the wealth effect if people are feeling good, they vote for the incumbent party there are a few exceptions mixed in with eisenhower and reagan. i feel this case could be different with the immigration issue, but the wealth effect is still there. >> you have money on the sidelines? >> right if the s&p continues to power higher, it gives power to the harris administration. >> what else do you like beyond health care? >> the other things in the sector are if we continue to

move higher in the a.i. trade and industrial real estate if we see a continued move higher there, you want to play the second derivative trade. if the markets drop, i would be a buyer of the s&p. >> what about the number we are waiting for tomorrow how foreimportant is that? >> labor has taken place in regards to the market. the volatility is because the fed is data dependent. i think that is actually a detracting factor to the markets being data dependent and markets hanging on every labor market piece of data. we have have initial jobless cl today. my bet is about 200,000 the big question is what happens in october i think there's going to be an ugly labor market report because of the furloughs and strikes and

hurricanes for the month of october. >> to some extent, we can look at every data point and be worried about it overall, the fed has decided it is going to ease and maybe that is more than important >> look at the broader overall move and the fact there is a dual mandate not hitting that 2% target on average and the potential of a reacceleration. i think they are focused on the second part of the mandate which is the employment sector maybe they're right. the jobs gap with guys who think they are plentiful and the other is is widening. i'm surprised the fed cut 50 basis points i don't expect another one >> kathryn, thank you for coming in >> my pleasure. coming up, the report of the e mpy.ns owner nears a sale of

thcoan and coming up, we will talk about the iran's nuclear ambitions. it's troubling "squawk box" will be right back. money for your weddi ngs. 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 these different investment options a shot. the right money moves aren't as aggressive as you think. i'm keeping the vest.

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pgim investments. shaping tomorrow, today this is the first we have seen it. we heard about private equity and now the miami dolphins owner is in talks with a pe firm to sell a stake in the nfl team and some other assets. it would value the dolphins at $8.1 billion this is according to the bloomberg report that ares would

purchase a 10% stake in hardrock stadium and the f1 grand prix. joe would buy 3% through the family office. the transaction is possible because the nfl changed its rules this year to allow pe firms to purchase teams. he has been in talks with dan griffin about a stake earlier this year. the report says those talks fell through. you see with the wild card, there's only one series left all the other teams was the best of three and they all won two games in a row >> you are just mad you lost money. >> i did lose money on the dolphins the titans, there have been so many upsets this year. i don't know who is favored on monday. >> we should point out $10. >> no, no, not a big better.

9 the mets are the only team it's not a seven, it is the game three in the best of three series at 7:00 tonight it's like a game seven especially for mets fans i like the mets. i don't want to say that i don't like the mets. i take it back i don't like the mets. i do like the mets, but i'll say i don't like the mets. thank you. the members of british rock band pink floyd agreed to sell the rights to the music and name and likeness rights to sony for $400 million. that is according to multiple reports saying the deal concluded despite decades of in-fighting with band members. the catalog had been up for sale for years, but some potential buyers were scared off by roger waters over comments of israel and ukraine and vladimir putin. >> total whack job always has been.

david gilmore, incredible guitarist. i'm surprised it is only 4$400 million. that is because of my love for pink floyd david gilmore has a new album out. i think he's going to go on tour i would go to see him. >> i never like the pink floyd >> oh, my god. they're amazing. ♪ hello, hello ♪ ♪ is anybody out there? >> you didn't like halocinogens. >> i didn't -- when we come back, we'll talk about one group that may push for the 2016 tax cuts to expire robert frank is here and he'll g join us next. as we head to break, let's look at yesterday's s&p 500

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good morning welcome back to "squawk box. we're live from the nasdaq market site. you can see the futures. kind of like yesterday it kept struggling, struggling, struggling yesterday gained 39 points in the dow. s&p up less than a point nasdaq was finally up. here we are gdown again in the morning. we were down again yesterday tuesday -- >> yesterday, we were slightly higher >> just barely looked lower all morning long. >> yeah. >> the ten-year is now up to -- it's 8 now >> 3.8 >> we mentioned it at the top of the show it had moved above >> it has been gradual the last couple sessions.

>> cut 50-basis points and it has crept higher >> there is that. there is one group that secretly want the trump tax cuts to expire and that is charities. robert frank joins us to explain. explain it >> becky, one unintended tax cut is the decline in charitable donors the deduction is now $29,000 per couple when you take the standard deduction, you can't itemize it reduced the tax incentive to give to charity for 90% of americans. so, total charitable giving has continued to increase. it flattened out after the tax cuts and then started going up again. $2.79 billion in 2017 to $374 billion. the number of donors has fallen.

the study by the university of notre dame found 23 million americans stopped itemizing the deductions after the tax cuts. that led to a $29 billion decline in giving that would have occurred given the economic growth and giving patterns in the past as a result of this tax change, fil it is dominated by wealthy americans at the top estimates that the share of middle class households that claim the charitable deduction between 2/3 from 17% to 5.5% not-for-profit groups are getting together to allow deductions to take the standard deduction. what they call top line or to, perhaps, lower the standard deduction. >> that's not going to be popular. lower the standard deduction >> that's unlikely that's one piece of the tax cuts that everyone, including

democrats, really likes. so, more likely what they would do if they try to fix it, if you take the standard deduction, we'll allow you -- >> it means it will be tougher in terms of what it means for the budget you have to come up for pay fors in how to do that. >> maybe it's $50 billion a year or $20 billion a year. in the grand scheme of the tax cuts, it's not a lot of money, but it's significant >> this is an issue when you try to simplify the tax code, that means getting rid of some of the special perks for special behavior which is behavior we want to see. whether that is buying a house or giving to charities, those are all ways we use the tax code to incentivize behavior. >> that's right. you can say the wealthy should pay more and dominating f

philanthropy when philanthropy is so dominated by a very small group at the very top, you tend to fund causes that really matter to that group, but may not be important to the broader american public. you get more money going to arts, education and health care and not as much to social services and needy >> or red cross. >> that's right. >> i can understand how that becomes a problem. what do you hear from washington at this point? is there a move to listen to the charities and say we need to get behind that? >> there have been moves when tax issues come up or budget issues come up and they want to wait until it renews the next year this is the important one. it will cost money to fix this is there an appetite on either side to add to the cost of those tax cuts because just extending them is 4 tr$4 trillion.

you want to do something with s.a.l.t. and then tariffs. everybody wants more sweeteners to the already sweet tax cut >> there are actually challenging or crazy people on the left saying it's a benefit of being rich to be able to designate who you support with your philanthropy. >> yeah. >> almost saying by giving money away to where you direct it, that you are somehow being selfish. instead of giving it to the government so they can piss it away 90 cents on the dollar. i herard it repeatedly. >> the wealthy can take 37% deduction of the income get more favorable treatment. >> is that a bad thing >> it depends where you stand.

>> is being able to designate you want it to go to a worthy cause? is it better to let the government waste it on the latest wasteful? >> from every other country in the world is the tax code and no other country has anything like what we do there are some that say we shouldn't subsidize this some say that is why america is a charitable country because we support that activity through the tax code. >> there are the economics of it >> it ties us into the greater good of the community. >> absolutely. >> if you incentivize that and say we're not in favor of that. >> i think something should be fixed for more americans to give. >> it's everybody having skin in the game. >> you shouldn't just give for tax reasons. >> right i'm shocked by the numbers >> you shouldn't cancer research. autism research. spend it on gender surgery for

prisoners. illegal immigrants but i digress. >> that's where you get into problems your cause is not my cause robert frank, thank you. robert >> i go by both. >> just call me frank. i answer to that. >> two first names. >> either one. frank, robert. >> robert. >> middle name >> lewis >> that's cool. coming up, we will talk about e an nlethirucar ambitions after the missile attack as we head to break, here is a current currency check "squawk box" will be right back. >> announcer: currency check is sponsored by interactive brokers. the best informed investors choose interactive brokers

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. president biden urging israel to take a proportional response to the iran missile attack this week that's a nice way of saying it the president said he would not support targeting iranian sites. david albright is the founder for institute for science and international securities so many different facets and nuances to this, david in fact, there is an editorial in the "wall street journal" that seems like the biden administration is more intent on deterring israel than it is on deterring iran before talking to netanyahu, says don't go after the nuclear sites. you make some interesting points that because israel might do it,

iran might rush it it may force them to rush it, which the feedback loop comes back to israel which might force them to act in a matter of days or weeks because everybody is being rushed into doing things after what happened earlier. >> that's a very dangerous situation and iran is more vulnerable to being struck by israelis at the same time, iran is close to building nuclear weapons and feels pretty strong here and deterrent of israel striking collapsed. two missile attacks and not a single hit of significance the ring of fire created by proxies is damaging. iran, i believe, does have a stronger motivation to build nuclear weapons and israel has conceded that iran is vulnerable

now to a strike. how this all works out i don't know as the days go by, iran has more time to prepare against an israeli strike and try to protect its nuclear weapons capability assets like 60% enriched uranium and they could move it and centrifuges that are being stored it is a situation that may not result in israel attracting iran's capabilities now. that may change. this vulnerability of iran will persist and iran's motivation to build nuclear weapons will go on i think president biden's statement is incredibly unhelpful. behind all this, there is a strategy and a policy to make iran so scared about building nuclear weapons because of military strikes, it doesn't do that and here he has undermined

that here, i think his comments are out of place and unhelpful >> a lot of facets to this when i step back and look at the entire picture -- david, just stepping back and looking at why iran needs a nuclear weapon. i think they do because they like to destroy the state of israel there are a lot of nuclear capable countries and they all, i guess, thought for different reasons to have that ambition, but this is -- is this a defensive ambition for iran? if it is purely an offensive move to be able to destroy israel, all theyhave to do is just stop developing a nuclear weapon why can't they say we're not developing one we'll put it aside and coexist

with israel. >> many iranians with elevated intellectual classes realize a downside there is an inch closer, but don't do it. what's happened, unfortunately, which changed things is i think the iranian regime is running scared and they thought this ring of fire that manifested by hezbollah principally and hamas and houthis would retain the attack and israel's ability to do things the region that's collapsed and their missiles don't work well i think they're running scared right now and there's a risk they will rush to a bomb out of that fear. >> all they have to do is stop developing the bomb. yeah -- >> that's true

stop >> they wouldn't be attacked and -- let me read one thing lisa, you know lisa, i assume, david. she says as the biden administration has made major concessions in tone and policy, tehran understood minimal to actions and to that end, continue to spin the centrifuges and final component. the latest comments from biden because we've already gone down that rabbit hole as far as how we're -- at this point -- >> the biden administration came in saying they will get a longer and stronger nuclear deal and conceded to get something. it has been downhill since then. yes, they have had a policy that has has been principally based on crisis you encourage our adversaries.

iran is an adversary, if not an enemy, at least the regime yes, they encouraged them. iran feels they can make the progress and shorten the time to be able to produce weapon-grade uranium for a bomb no real punishment when evidence emerges of the advancements of the nuclear weapons program. the biden policy has not worked and we're suffering consequences of it and it could be war. >> in conclusion, both hands are being forced iran's hand is being forced and israel is being forced at what timeframe, david in a matter of weeks >> i don't want to put a timeframe on it. america should deliver a message

to iran that their nuclear program will be reduced to a burnt out cinder if they build nuclear weapons. >> we don't know. >> we should focus on -- >> isn't it deep underground we don't have the ability -- they're close enough now to where we wouldn't know if they took that step do we have people? >> don't underestimate israel and they may surprise us they said two years ago, they needed two years to prepare to attack iran's nuclear program. they have been thinking about this who would have thought they would have put bombs, explosive devices in pagers that seriously damaged hezbollah? don't underestimate what israel can do. >> we don't know if iran takes that last step it could do it in a matter of days >> i have more trust in our intelligence agencies that we --

i worry about whether the u.s. will act properly when it does know or will it try to put the brakes on israel >> exactly >> i think one thing we have learned, it's not so easy to put the brakes on israel they're fighting forsurvival we're fighting for avoiding a nuclear crisis in the middle east >> or even for political reasons. all right, david albright, thank you. okay when we come back, trehe have been conflicting reports about strength of demand for apple's latest iphone. steve kovach will shed a little light on that story right after this when it comes to investing, we live in uncertain times. some assets can evaporate at the click of a button. others can deflate with a single policy change. savvy investors know that gold has stood the test of time as a reliable real asset. so how do you invest in gold?

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check out shares of s stellantis the ceo making his first public appearance since the company slashed its full-year guidance during a visit to one of the automakers' hubs in france, he said current operational difficulties should not call into question its overall strategy he also described the current market situation for the car industry as brutal that was his words barclays is downgrading that stock this morning you can see for the year, down by 30% already this morning down by 3.6%. coming up, real time read on inflation from restaurant owner cameron mitchell that's next. and later, cseloly watched jobless claims data due at 8:30 a.m. we'll bring you the predictions. "squawk box" will be right back.

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all right, let's look at inflation in the restaurant industry and if prices on the menu have actually stabilized. joining us right now is cameron mitchell, the ceo and founder of cameron mitchell restaurants, and we have been checking in with him routinely since the pandemic cameron, thank you for being with us today. >> thank you, becky. a pleasure to be with you. >> let's talk about what you're seeing and let's put this in the context of the federal reserve, what they're doing right now we got a jobs report coming up tomorrow the federal reserve has basically said they're not so worried about inflation anymore, that seems to be the part of the mandate that looks good from their perspective. they're more worried about the labor market and softness there. does that match up with what you see in your restaurants across the country? >> yes, i think so, becky. we are -- all of our costs are much lower than they were than before we have raised our prices this

year we raise our prices 4% a year. there is some consumer stress there, so, we have only taken 2, 2.5% price increase this year. we think inflation has slowed down interest rates coming down certainly will help us, certainly will help us on our interest expense as we move forward. so, we're fairly optimistic about going forward here and especially into 2025. >> what do you see from consumers at this point. are they willing to spend on things like wine, on desserts, on appetizers? >> yeah, so we have been in business 31 years and we only have had negative same store sales a couple of those years. you know, the recession of '09 was one of them. covid is another one this year we experienced a drop in our fine dining sales of about 5% meanwhile, our more casual segment restaurants are up 1% or

2% for the year. so, company wide, we're down sales this year about 3.5%, little under 4%. the good news is, i think september we just finished up, and for the first month this year, september was up 2% over last year in sales, same store sales, so, we'll see how that holds for q4 going forward here. >> cameron, if this only happened a few times where you have seen sales down, the other two times, the great recession and covid, do you think what you're seeing now is a harbinger of worse things to come or is this something where, look, we're coming off such high numbers, maybe it is not shocking to see the decline? what does it feel like to you? >> i think it is the latter, becky. i think it is just a reset out there. in 2021-'22, there was such euphoria out there, covid was over, so much money out there in the system, and people were

spending and jubilation and so forth. and so now in '23 inflation hits, interest rates rise, people start to pull back, which is natural and it is just a resetting of the economic environment for us we look at 2025 now five years out from covid, the past four years are all a result of covid. i think '21-'22 sales were inflated weren't really normal. our guest counts are still to this day above 2019, so i think we're okay this is just a natural resetting that is going on right now and people for the time being gravitating down toward the lower end check. but i suspect we'll hopefully -- 2025 we should be back to normal, i think. >> you're continuing to expand in this environment. four restaurants that either opened or are scheduled to open this year. what about next year >> yeah, we have five next year.

now, keep in mind, restaurants take two years typically to open so, the restaurants we're opening in '25, we closed those deals in '23 by the time you get design, permitting, construction, now you're into '25. right now we're work on 2026 development but being very cautious on that for the time being. want to get through the end of this year before we sign any more commitments for '26 and beyond. >> that's interesting. cameron, really good to check in with you again we do appreciate your time cameron mitchell >> my pleasure, becky. thank you. just after 7:00 a.m. on the east coast you're watching "squawk box" on cnbc i'm joe kernen with becky quick. among today's top stories, toyota delaying the start of electric vehicle production at its kentucky factory by several months, according to japan's nikkei business daily. the change is reportedly due to

design adjustment, but also slow ev adoption. and the longshoremen continue to picket at ports from maine to exas. looking for higher wages and protections against automation the unions and the port operators didn't meet yesterday and said there are no immediate plans to continue negotiations we're going to speak to senator shelly moore capito about the strike and much more. and openai closed its long awaited funding round. the valuation of openai, 1$57 billion. they did not name the investors in the round a source telling cnbc it was led by thrive capital. including participation from existing backer microsoft as well as nvidia, softbank and others let's check the futures this morning. still red. not quite as low for the dow now, down by 130 points. the s&p futures off by 12. the nasdaq down by 46.

over to dom chu, he's got a look at this morning's premarket movers what is dragging things down today, dom >> let's start with a look at levi strauss the denim and apparel company is down roughly 11%, now 12% premarket after reporting better than expected profits and weaker than expected revenues levis kept the full year profit guidance and cutting its revenue guidance to the low end of the previous range the company is going to look into selling its dockers khakis brand, a drag on some of the performance. so levi strauss down 12% and then red hot china stocks as of late, some of the biggest and well known names are cooling off this morning alibaba, jd olympiad com, nio off 3% as the beijing stimulus rally loses some momentum. you got those names moving well off their highs of the week as investors look toward further updates on any fiscal policies from beijing remember, markets in mainland china are closed this week for a national holiday a lot of these are these hong

kong traded shares and then we're going to end with a look at tesla. those shares are cooling off as a nice run higher over the last several weeks. tesla reported third quarter delivery numbers yesterday that fell below analyst expectations. the ev giant is struggling with some of the pullback in demand this quarter as competition heats up in that chinese market. tesla is also, by the way, apparently halting sales on some of its lowest end model 3 sedans in the u.s. market as well tesla shares off 1%. i'll send things back over to you. >> okay. thanks, dom. new survey indicates consumers may not be as excited about iphones with a.i. as the street had hoped and steve kovach joins us now to break down i watched the ads, steve, there is this person there, like -- they're at a restaurant. >> yeah. >> she goes, so what did you think of my -- >> you know who that is, right >> no. the little girl in "the game of thrones" and she was 10 years

old and she blew everyone away of how good of an actor she was. >> she's in more than one commercial have you played with it? the phone? >> yeah. >> you can summarize an email by scanning it. that's not a.i. >> that's the point here let me tell you what's going on here apple intelligence may not as exciting as the bull stock that's the theory on wall street right now. there was a survey this week and it shows artificial intelligence is the very last thing customers are upgrading to the 16 care about. that's behind features we talk about all the time, device speed, 5g, design, the camera, and this survey comes as the street has been trying to for weeks to figure out what iphone 16 demand actually looks like. so far the signals are not too great. analysts have been looking at the ship times for online orders that's the only gauge of demand they have right now. the iphone 16 pro models appear to be selling worse than they were last year and the year before that. that's important

those are the most expensive phones apple sells the stock has been kind of seesawing this week based on the analyst reports. on monday, the stock was up after the 16 pro demand signals appear to improve. morgan stanley put that one out. and then it also went down just 24 hours later when the other analysts said that 3 million orders may have been cut from an iphone supplier. now, we're not going to get any more clarity until apple reports earnings here in a few weeks got to pay attention to the guidance, see if they guide toward growth, particularly growth in the iphone segment and, but, look for now, a.i. may not be the spark for apple to get the business growing again and to joe's point, if you go out there and buy an iphone 16 right now it does not have this a.i. feature all that cool stuff, in june, when i was out in cupertino and showed all this amazing a.i. stuff -- >> it looks cool when they show it. >> we have no idea if it is as cool as advertised. >> the reason i wanted the phone is for the better camera and longer battery life.

>> you're one of those people. >> i'll deal with the rest of the -- >> what does the camera do my camera is great. >> pictures, like, i got an old camera, i will say i don't have the latest version i only have two -- >> what number is that >> i don't know. i can look it up but i only have two -- >> you don't have the wide angle camera those are still good the point being is people tend to care about that kind of stuff or upgrade -- >> i look at pictures of my kids now from and it is so much better and the battery life is better. >> it would be easier to replace a battery if they didn't make it -- if they wanted you to be able to easily replace a battery -- >> they made it easier, but it is still 100 bucks, still have to surrender your phone to apple. >> you think that's all planned? i think -- >> planned obsolescence. >> they need to look into that. >> they have they're doing something because regulators have looked into it

>> that's all i would do i'd have an iphone 1 that's why i want a new one. because 75% battery -- >> you go to the apple store, pay 100 bucks, they'll swap out the battery. i did that a few weeks ago and like so many people -- >> like an hour? >> an hour or so depends how busy the store is. you can do that instead of buying a new one the artificial intelligence features are not ready yet >> who was the little girl she's all grown up now >> bella ramsey. >> who was she in "game of thrones" >> lady mormont. i'm a huge nerd, dude. >> we know that. also in the last -- who did she kill in "game of thrones"? >> she got killed by one of giants >> she didn't kill anyone. >> i remember the giants, when they were leaving -- yeah, yeah, yeah okay >> now she is selling iphones. >> now she's selling iphones

i think commercials, gigs that you get there might be better -- >> every super bowl i'm shocked at what actors will do for money. >> the allstate guy, he's making gazillions. >> the geico -- >> the gecko. >> progressive is the worst company in the world i'm dealing with them right now. the worst company in the world by far but the other one, what am i thinking -- oh, the guy from state farm i love that guy. jake jake from state -- i know him. i swear to god, i think we had beers. >> really? >> no. because he's just so affable and -- >> they're begging us to leave thank you, steve. when we come back, we'll talk markets as investors get ready for tomorrow's jobs report and later, the outlook for crude prices as the conflict in the middle east deepens. "squawk box" will be right back. in the u.s. we see millions of cyber threats each year.

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joining us now to talk markets, eric friedman, chief investment officer of u.s. bank asset management, which has $480 billion in assets under management good to see you, eric. do you feel good about the continuing uptrend in the stock market because no one felt good two years ago or a year ago when it was really a good time to feel good now everybody is on board at 22 times earnings are there enough positive things going on to make you want to stay here? >> yeah, joe, we do think this is a weighing exercise to be sure we think the positives outweigh the negatives. i think there is a couple of things to really focus on. number one, valuation, which is never really a catalyst is not

our friend to your point next year, expectations at 15% earnings growth is a little bit lofty. we have to see if the consumer will hang in there we think they will but probably a bit of a pullback in estimates for next year the other number to pay attention to, important to talk about it now, is what is happening with guidance from companies. we still think the bias from cfos will be in tech spending, cloud, away from enterprise software, away from enterprise applications, but also think that the consumer across the bifurcation across the upper income consumer and lower income consumer, that's the biggest variable to see if the economy still works and if corporate earnings will come in at those lofty levels expected for next year. >> so, there will be no expansion -- multiple expansion, we don't need it, the earnings will take care of whatever advance we get >> the swing factor on multiple expansions will be that belt between where the fed is for

next year, at year end, fed funds versus where the market is the market thinks the fed is going to cut by 50 basis points more than the fed said two weeks ago. if the market is right, the fed is wrong, which we think is probably the more likely case. we think the consumer on the lower income side will slow down more you can see a point in change of multiple expansion that requires fed funds coming down to something looking more like 3.5 or a 4. that is the swing factor so, again, i think there will not be as we like to say a normally distributed set of earnings coming out for the next couple of quarters tech was the darling the last couple of years. has been more under pressure on the chip side, but we still think that, again, no better cure for high prices than high prices and certainly if you look at labor trends, which we'll get an update on tomorrow, cfos are spending much more on capital than on people so that, we think, is still a decent tailwind for tech

investor as we push forward into the new year >> there are people that say the secular bull that we're in right now isn't even that old. do you agree with that a lot of money on the sidelines too that if we need more, i don't know, more fuel to keep the market going >> i think 2022, joe, was that year when nothing worked if you look at across both stocks and bonds and we also saw at the same time a real ramp higher in rates. what we have seen from a significant change in investor psychology is the focus on income and investors got away with really high money market rates so they saw 5, 5.25% return on their cash i think that's changed in terms of market psychology people tend to look more now at their income in their portfolios than their total return. that's not the right approach, but the beneficiaries we think will likely be areas of the

marketplace that do capture yield and some income. everything from some of the dividend paying stocks that haven't worked, but also things like business development corporations, master limit partnerships, structured credit, some more esoteric parts of the market that we'll see clients replace cash holdings with areas like those that, again, do provide some good current yield and draw more cash on the sidelines. >> okay. thanks, eric >> thanks, joe. when we come back, how tribalism plays into the current political climate and the israel-hamas war and protests on campuses across the nation and later, can nike make a comeback the stock is stumbling this week after earnings and retracting its full year guidance ahead of elliott hill taking that helm as ceo. jon fortt weighs in. "squawk box" will be right back. >> announc: meoworerti n f today's aflac trivia question. what year was gatorade invented? the answer when "squawk box" returns.

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>> announcer: and now the answer to today's aflac trivia question what year was gatorade invented? the answer, 1965

researchers at the university of florida created the sports drink to keep the university's football team hydrated our next guest has unique insights on the concept of tribalism and how it impacts u.s. politics, the c suite, college campuses everywhere as we saw with the unrest at colleges and universities earlier this year. joining us right mao is cultural psychologist michael morris, columbia university professor, new book out this week called "tribal: how the cultural instincts that divide us can help bring us together." thank you for coming in. >> thank you so much for having me i watched your show for years. it is an honor. >> you're the one. >> thrilled to have you here you have to explain to me, tribalism, i look at it as a pretty divisive situation in the united states these days how do you actually see it as a superpower >> well, i think tribalism means, you know, the psychology that enables us to live in large communities with shared assumptions. and that's what got us out of the stone age, right it is what underlies everything

that works, an organization like this, or, you know, the city of manhattan, it works because we have, you know, a shared culture. but that doesn't mean that it never goes awry. and we see it going awry quite a bit in the current moment. i think i would like to say it was prescience, but we're teetering on the edge of a war in the middle east and we have a divided government and we have the largest labor union threatening to shut down the supply chain so there is a lot of collective action in ways that not entirely positive right now. >> this is tribalism gone awry >> yes. >> that's why we're looking for things that differentiate us instead of things that -- commo commonalities. >> one of the reasons i wrote this book, i think tribalism has come into currency as a term and as a catch-all explanation over the last ten years

and the way it is often defined and talked about is that somehow we're wired to hate outsiders, wired to hate the other, another group. i think that's just not a picture that any evolutionary scientist or behavioral scientist would recognize. we have these social instincts that are called tribal i instincts. they occasionally lead to conflicts where hostilities develop, but the conflicts don't start from hostility >> so what went wrong? what went awry >> i think it is a different story in every case. so what -- what went awry in our politics is a kind of tribalism, but it is not a tribalism of hate it didn't start with democrats hating republicans it started from living in different worlds, holding different beliefs, and then being baffled at the other side. and then starting to doubt the other side's sincerity and how did we come to live in different worlds well, the splintering of the

media had something to do with it weused to all get our news fro walter cronkite and we were all on the same page but when you have partisan news channels that serve different constituencies, we are living in bubble chambers and we're getting further and further apart in our assumptions. >> i thought it was -- i'm ready to start looking at, you know, in, you know, where you're doing an autopsy, i'm thinking we need to look at brains. a left brain, right brain. there is things i see in things i believe, i look at what other people believe and that's, like, veno venus and mars, one person is from venus and one person is from mars. left brain, right brain. i can't figure where some of the thinking comes from at this point. maybe it is that people live in an echo chamber gets drilled in for so long, they don't visit the other echo chamber >> i think that's right. if we understand the echo

chambers contribute to it, there are things we can do personally, we can break out of the bubble, change the channel on our television, get exposed to a different stream of news i think that one of the big mistakes is to think that these cultural world views are sort of permanent and we're stuck with them but they're really not we all have internalized multiple cultures and we switch between them we call it code switching when, you know, it is about, you know, ethnic or racial cultures, we all do that. you come into work, it is a different self, a different world view than when you go home or when you go to church, go to the gym. and so, you know, if we understand the levers that cause people to switch from one cultural identity to the next, then we can lead people through their culture and -- >> i'm not kidding about an exchange program student all of us spending more time with each other and trying to understand each other, but describe specifically what you think has gone wrong on college campuses you're a professor at columbia

and this is something we have watched -- >> columbia. you actually talked to the president -- you tried to help >> i have. so at columbia, a lot of us, you know, are there because we take pride in a tradition of political engagement it has been a relatively political campus and that has gotten ugly at certain points in the past the vietnam war, but it also had some great results like it helped, you know, fuel the antiapartheid movement, columbia was one of the first campuses and it spread and that's one of the reasons that mandela got released, this campus protest across the world a lot of us are proud at first but it clearly ma etastasized ia direction that nobody was learning from. an activism that became acrimony and the group started as expressions of solidarity for different groups of civilians in the middle east. and a few months later, the

groups thought each other were the problem, attacking each other. and so, why -- why at columbia did it go this way other universities -- my wife went to rutgers. at rutgers, things ended very constructively the president, he welcomed the activists, said universities learn from activism. this is the energy that helps us update our policies and, you know, make ourselves better. >> i went to rutgers too and it wasn't a smooth transition along the entire point i saw video of protesters where holloway was there, and then left and the jewish students who were there were kind of left with a group of angry protesters he was taken out with police guards >> okay. >> so it has not been smooth everywhere it hasn't been columbia there for sure. >> right. >> but i think the campuses that have been worse are like ucla and columbia in the middle of really large cities where the student activists are ringed by professional activists and they start to see their

mission as a line with these more seasoned activists. both sides i think at columbia became co-opted by more extreme groups >> the tolerance is a one-way street on a lot of these liberal campuses and i wonder how that happened over years and years is it those are the people that are hired at the college campuses it is nice to be, you know, to feel virtuous and i'm, you know, there is a group of press people that i'm going to, you know, go demonstrate for, but there are actual times where someone might be ready to -- for an opposing viewpoint and they're not welcome anywhere near that college. and that's not tolerance that's not open minded that's not progressive that's just -- i don't know, that's close minded and tribalist. >> yeah, well, we did have two sides on our campus that were both represented, you know, very

forcefully we had a pro israel group and we had probably the strongest ties to israel of any major campus in the u.s. and we also had a strong, you know, gaza solidarity movement. >> you had -- you had -- >> there was a pro-hamas, pro october 7th kill the jews contingent. >> jewish students didn't feel safe. >> there is always a difference between what most people in the protests are saying, and then the extreme statements that get picked up by the media, right? the competition for attention. >> there was no -- there were no consequences they were suspended. some of the people screaming genocide to the jews are back at school now. >> i agree that it is a tough question what -- >> they should be out. >> yeah, you know, i agree with that i agree that it is not acceptable to, you know -- >> they're still afraid to go to class, a lot of jewish students and still being harassed and

everything else. you don't go to a $100,000 ivy league school not to be able to attend class because you're fearful. i think the ball was dropped by a lot of administrators, right >> a lot of them, it is not just columbia, you know you look at penn, you look at harvard. >> no, and that's weird, isn't it where are these people -- how are they all at these places they all got that -- tribalism the wrong problem. >> a lot of them happen to be new in the job she started on october 4th, this happened on october 7th. and what a lot of college presidents believe in is institutional neutrality and it is not that they're against political debate, they think that if the president is silent, and the university doesn't have a position, that that enables full debate among faculty and students so the university hosts the debate, but is not a participant in the debate. but that can look a lot like indifference and it can look a lot like cowardice even, and i

think that holloway maybe did a little bit better job of being proactive in welcoming -- >> i agree with that i would agree with that. michael, thank you for coming in today. >> thanks so much. >> michael morris, the new book is called "tribal. >> i think my new book "tribal" is very much needed in this moment of october 2024 and i'm al, alrelyrely happy to be here. >> thank you for coming in. coming up, politics and your financial well-being why some are putting their retirement plans on hold we'll be right back.

just a month, 33 days until the presidential election. one month. hopefully not two months before we know the outcome. but investors say that they'll feel uncertain about the future of the financial well-being until the results are in many are putting financial decisions on hold, but, sharon, i'll let you do your report. we have known from the past we worry about it and then it is all said and done, it usually doesn't make that much of a difference. >> i know. that's not how people are feeling. >> anxious. >> they're anxious separating politics from personal finance can be difficult for many people particularly this election season a new poll finds nearly a quarter of adults say the outcome of the presidential

election will determine whether they're rich or not and half believe the election outcome will directly impact their personal finances. that's according to a survey of 2200 adults by the firm empower. 26% say they'll never be able to retire, 29% indicating they'll have more money in retirement, and 31% saying they're likely to be more financially secure in retirement depending on who wins the presidency on november 5th while the election adds another degree of uncertainty to the market, financial advisers say you shouldn't let it derail your long-term investment strategy. instead, focus on your asset allocation, your goals, whether you're on track, to meet them, and super charge savings in your retirement plans and individual retirement accounts. also, stay invested. the markets can be volatile around election, but historically generate positive returns over time. still, many americans are very

anxious and a survey finds 80% of adults say they expect their personal financial situation will be worse if the candidate they vote for does not become president. that's a majority of democrats and republicans. and, of course, only one party will win so, financial advisers say have a framework for making financial decisions that keeps you focused on your goals, no matter the election outcome and if you're looking for an adviser to help develop a framework and set up a plan, check out cnbc's financial adviser 100 list you can see the full list by scanning the qr code on the screen or go to cnbc.com/fa100 >> only one party will win, but there is three different branches you got the house, the senate and the -- that's more than -- and the hope is that it is split among a lot of people. but it is interesting. we just said -- we were talking tribalism. so, the two sides that think

they're going to lose if the other side wins in terms of the president, are they -- it is weird, because threat to democracy was split down the middle, which one was the threat when they did polls? what did they think on each side about what happens if the other guy -- >> when they're looking at what's going to happen and their greatest concerns, republicans more concerned about increased taxes. democrats more concerned about higher healthcare costs. but, again, this framework for that financial advisers are saying for those people who are concerned about taxes and they have the money to do it, they're doing more and more roth conversions right now going into this election. healthcare costs, we're looking at open enrollment season, this is the time for people to think about that they can -- >> in case taxes go up >> pay the taxes now, exactly. >> that's an interesting -- >> right >> perspective. >> the idea of -- i find it fascinating that people look at their situation and their retirement accounts and think that's their money, many of them

are in traditional accounts where a lot of that money is going to be taken up with taxes. you do a roth conversion and don't pay taxes. >> you pay the tax bill now, but lower rate than later. that's interesting if you look at our deficits, hard to imagine taxes are going down. >> exactly >> thank you >> what are you doing, sharon? >> what am i doing >> no, no, i'm just kidding. >> going over my plan. >> being aware yeah okay when we come back, we are watching oil and escalating tensions in the middle east. israel carrying out fresh strikes in lebanon we'll get an outlook for food prices next. this morning, wti up to 71.34. brent just about $75 a barrel. then senator shelley moore capito will join us to discuss the port strike and much more. "squawk box" will be right back.

oil rising as the middle east conflict deepens and fears of disruption rise joining us right now is don sroibin. we have been trying to figure out why oil prices haven't reacted a little more drastically from the horrific things that are happening in the

middle east. >> you definitely see some significant responses in option markets, the cost of insurance against long price spikes in the near term has risen significantly. if you're looking at the flat price, you're in the mid-70s for brent, low 70s for wti and that is still about $5 per barrel below the fair value implied by the level of inventories yies w are moderately below historical averages why is this so muted >> is there higher prices but also extended activity in the options markets now too? >> activity as investors try to buy insurance against not the central case in their view, but the risk is where you do see significant supply disruptions and the spike. >> maybe we're seeing more options activity than we have seen in the past, and that might explain some of this what are the other reasons

>> there is 6 million barrels per day of global spare capacity basically shutting production. that in most geopolitical disruption scenarios is likely to come online to offset any potential tightening effects from loss of -- that's the most important reason and the other reason is that if you look back at the last couple of years, the spike to very significant conflicts in two major oil producing reasons, russia, ukraine, the middle east, we haven't seen large supply disruptions. >> we have seen at the same time china adds massive stimulus that has led their stock market to jump 21% if stock market investors are so convinced that this is going to pay off and really stimulate the economy there, why isn't the energy market more worried that that is going to really jack up demand and put more of a crimp on things there too? >> absolutely. we have seen very significant reactions in asian equity

prices, large reactions in metals prices and fairly muted reactions in oil markets i think it has to do with the fact that a lot of the measures are directly targeting the chinese stock market second, that china -- >> not necessarily as much consumers. >> consumers, right? china accounts for 50% of global demand for most of the metals. only accounts for about 16% of global oil demand, u.s. remains the largest global consumer of oil, about 21% and last but not least, we do think that several of these measures that may be implemented may accelerate the shift away from oil into alternative fuels. for instance, ev recharging infrastructure bidding builds out. scaling up the trade schemes where you can swap your gasoline driven car for an ev car the impact on the overall economy may be larger. >> that's a long-term play, though right now the story is nobody wants an ev car and they're turning things back in and

companies are cutting production plans. >> that is definitely something we're seeing in western markets. the situation has been different in china, where the share of evs in new car sales is just over 50%. >> okay. thank you for coming in today. >> thanks a lot. coming up, west virginia senator shelley moore capito joins us after the break and as we head to the aforementioned break, check out the shares of stellantis barclays downgrading the stock meanwhile, the ceo says the automaker's current operational difficulties shouldn't call into question its overall strategy. he described the current market situation for autos as brutal, but said t cpaheomny would honor its 2024 dividend and buyback commitments. "squawk box" will be right back.

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the port strike is entering

its third day and president biden is saying at least at this point he won't intervene even though some manufacturers and retailers are pushing him to invoke a 1947 law that could suspend it joining us now, senator shelley moore capito, she served on the commerce committee, serious, senator. president bush invoked this back in 2002 preventing a port strike is that in the cards, maybe not right now, but soon? >> well, i think the effects will be really felt here probably in the next several days's they say a week it will take the biggest affect of the strike and i do believe that president biden's been asleep here but i think he needs to wake up in terms of his abilities to invoke this as president bush did in 2002 you know, the eastern ports affect so much commerce, so much business, so much ability for food and agriculture, other

things, that this is essentially i think for us to settle the strike the strike to get settled, and the president needs to take a more aggressive stance here. >> it's an interesting political dynamic now, senator, because it -- finally something bipartisan and that's sort of support for labor. it wasn't always like that so both sides are, like, trying to outdo the other in termses of their support for working people, and i don't know -- so that's a dangerous combination if you invoke taft you're kind of cutting union off at the knees. how would it work exactly? seems you're removing the ability to do what they need to do to try to -- to get what they feel they're worth. >> well, my understanding is, i fully support the working men and women on our docks there's 45,000 of them that provide incredible work and work hard and a lot of it is physical

labor, and she should be paid according to their, their abilities and what they're doing and get the overtime and all of these things, because we know that shipping is a huge industry, and they're profitmaking those employees should share in that, i think, as benefits of their hard work. where i think what we -- look at the rail strike that almost occurred several years ago we saw the president came in and tried to get the two sides together eventually did prevented what could have been a devastating strike on our rail workers. this, the same can be done for our dockworkers. we've seen this. it's been signaled i've read the union really hasn't been at the table much effectively over the last several months i hope that's not the case i hope there's still all kinds of discussions going on between the union and the -- and the businesses but the fact of the matter is, these things foment, have a

tendency to draw out longer and devastating effects on goods and services as i said, bit also looking into a huge shipping time of the year for us. moving into christmas. it's affecting the whole east coast. we've just had a devastating hurricane on the east coast. so we're going to need emergency supplies more than we ever have. there's other ramifications here i think should drive the two side together. i'm hopeful they'll be able to settle this. i think in the interests of everybody they will. it's just we want it sooner than later and i think the president would weigh in more forcefully i realize the politics of it. >> it's ap election year an election year he doesn't -- he's between a rock and a hard place. doesn't want the effects of a strike but also doesn't want to hurt, you know, the union's ability to get what it wants to get. >> bargaining. yeah senator capita what do you think that the union turned down pay raise of 50% and so much is

reliant on automation. not wanting automation to come in i realize you're a republican and also, though, draw support of the united mine workers of america. you're not somebody who's a union buster on this situation, but what do you think are the offer sounds like they turned down >> i have been a vibrant supporter in my own state because it's important not only with mine orkers. we have a lot of steel workers and others if you're not at the table and have reasonable requests you're never going to get there my view, face of it, an american city looking get a 50% raise seems pretty reasonable to me. i think over the long term more benefit for the workers. i understand they're asked to work longer hours because of the way shipping works comes in intense. goes out work sort of leaves for periods of time. smooth over those rough edges, but a 50% raise in wages over time is an incredible offer, i think. i understand they're asking for

77%. when i saw that i thought that was rather unreasonable, in my view, but a 50% raise is an amazing, i think, offer back and i think that the leaders of the union ought to sit down and really realize what they're doing to the families who are now relying on another income, because they're off striking a lot of them are younger workers with families that are really starting to be extremely concerned about their futures and how they're going to manage the next several months. these are reasonable, i think, offers that i think ought to be taken a lot more seriously than on the face of it. it appears we don't know, really, what it's going on between the two sides, and hopefully they'll come to a resolution quickly >> senator capito, everything changes when you're this close to an election i could see many different things happening and then, you know, got boeing, all kinds of -- it's very strange. all the hot spots around the

world. it's a little distressing. is it not? >> well, it is very distressing but let's look at it at the face of the american getting up ever day to take their kids to school they want to work, earn a living wage and be safer. to me that's the political issue. get our workers back to work, and that will go to the benefit whoever can do that the quickest. >> senator, got other things could have talked about, i guess. >> right. >> control of the senate, house, et cetera. maybe next time. thank you. >> love to thank you. when we come back, can nike make a comeback? jon fortt will join us right after the break for this we weweek's "on the other hand" segment. right now hiding to ut break, laggards in the dow right now led lower by i'mbm down 0%..8 intel, caterpillar, salesforce also on the list "squawk box" will be right back. brought her pa

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it's 8:00 a.m. on the east coast you are watching "squawk box" right here on cnbc. i'm becky quick along with joe kernen andrew is off today.

among today's top stories artificial intelligesymbol opend $157 billion a source familiar with knowledge on this tells cnbc that funding round was led by thrive capital with participation from existing backer microsoft as well as softbank, nvidia and others. don't miss an exclusive interview later this morning with openai's cfo sarah friar. speaking of nvidia shares on the rise this morning. head of the company describing heightened demand for its next generation a.i. clip to our own jon fortt. >> blackwell is in full production blackwell is as planned, and the demand for blackwell is insane everybody wants to have the most and everybody wants to be first. >> nvidia's leading customers trying to get their hands on the blackwell chip to help train newer a.i. models.

faa says it found no significant safety issues in review of united airlines. the agency ending and approval process to add new aircraft and services prompteded by a series of safety incidents including a plane found with a missing external panel after it landed and another plane that lost a tire after takeoff. futures this morning have been in the red for mostly early morning session. still down a little bit. not as much as before. i think we were triple digits on the dow. treasuries, too. mentioned the ten year kreemping o creeping over. over to dom chu. hey, dom. >> joe and becky, a couple earnings movers this morning to start off with look as levis, down roughly 11% after reporting better than expected profits but weaker than expected revenues.

levi kept its full-year guidance, revenue guidance cut to lowest estimates. the company looking to possibly sell its dockers khakis brand. levi strauss down 11%. also this morning, constellation brands, shares higher now by about 2% after the beverage alcohol company behind brands like modelo modavy, up 6%. wine and spirits fell 12% year over year basis for the quarter. constellation brands up necessary 2% end with a look at tesla shares cooling after a nice run higher over the last few weeks reporting, remember, yesterday, third quarter delivery numbers fell below some analysts expectations ev giant struggling with demand pullbacks in china competition in china as well halting sales of lowest end

model 3 sedans in the u.s. market shares down 1.25%. over to you. >> thank you, dom. very good. and berkshire hathaway selling more stake in bank of america. berkshire unloaded more than 8.5 million bank of america shares first three days of the week earning about $340 million the average selling price per share was just under $39.50. berkshire still owns 7 94 million shares 10.2% stake in the firm. anything below 10% once they get below the threshold, if they go there, berkshire would not be required to tell the s.e.c. with two or three business days if it changed holling holdings in the and nike shares, the company retracting full year 2k3w50idens l guidance ahead of a new ceo taking the helm. time to ask, can nike make a

quick comeback jon fortt is here to weigh in. >> hi, becky yes. nike can make a comeback and won't take a decade. first review how we got here before john donahoe arrived ceo january 2020 direct to consumer was all the rage in retail warby parker glasses, kasper and harry spence donahoe previously a silicon valley service now and ebay wanted to make sure nike wasn't tethered to that obsolete ball and chain of brick-and-mortar stores within months reorganizationed the company to focus on a niche of sports and more ordinary people less on local distribute beers more on nike.com at first in a pandemic appeared to work. sales doubled fiscal 2021. roads 19% for the year didn't last. turns out athletes are the changemakers less attention on them meant less innovation. peep shopping in general retail stores even physical ones. scrappy competitors took the

third-party shelf space nike aban abandoned. good news. taking the reins, yes. has to reinvigorate product and reconnect with retail partners but can show progress i bet in three years or less. nike needs more rediscovery. >> jon, felt recognition came that, okay swapping out guy at the top, sometimes it's a lot more difficult than just that >> yeah. well -- "on the other hand," becky. this nike turnaround effort quick for three reasons. momentum, trust and china. momentum seemed unstoppable brand strength and shelf beaux bickty they need to introduce a product soon lululemon smelling blood now and others on trust nike pivoted away from its core

stepped back from sports communities and wholesale alienated partners those relationships don't heal overnight. stakeholders watch what he's willing to spend money on. then china market the consumers are under pressure leaning more than usual maybe towards domestic brands like solomon china's about 15% of the global sportswear market and hill will be hard-pressed to make the right moves there while fixing the rest of nike the doable for the right ceo with the right plan, but with global consumers' ed considerate stretch and tough rivals back it's a marathon, not a sprint, guy it's. >> good news maybe this is someone who shpent decades with nike before. had relationships with others and cheers he was coming back. not same as bring a new outer to learn all of that. >> true. it's hard to remember just how hot d to c seems five years ago.

everybody of just going to sell online brick and mortar dead. now an omni channel rethink. a lot more emphasis on stores. somebody who can dust off that playbook and come back. >> how's his relationship with the athletes wondered how michael jordan and others felt about this the people who were the brand ambassadors. still are. the ones driving innovation, so revered there? how do some of those -- >> i don't know the answer to that i suspect that a big part of the disconnect has come not with the professional athletes like the big names that we all know it's with those, you probably saw that "wall street journal" story about the running communities. where nike had stepped back and others stepped in. like those enthusiast groups that are the core. marathoner, et cetera. >> and brooks runnings heard from the ceo talking to him the last years. new ceo, too that was certainly an opportunity for some of them to step in and get that fanatic

runner. >> yeah. like under armour certainly hasn't taken over. one we're worried about. well, the "on the other hand" newsletter ponder more qr code on the screen. scan that or type in cnbc.com/otoh for the full text of both arguments and, of course, you can share. >> by the way, jon, great job with the interview. >> thank you quite a story there. >> it is and hearing the description from him how everyone wants these chips. how do they make sure they don't fall into hands of competitors luking to rip them apasrt and boost their own production >> industrial a.i. we'll keep our eye on it. when we come back, watching magnificent seven earnings after tomorrow's payroll report, and into the opportunities and perhaps risks ahead for openai coming off news of that monster 6.6 billion dollar funding round. stay tuned

you're watching "squawk box" on cnbc. (man) look at this silly little sailboat... these men of means with their silver spoons, eating up the financial favors of the 1%. what would become of them when they discover robinhood gold allows others to earn their very liberal rates on idle cash, unlimited deposit bonuses and handsome retirement matching? they would descend into chaos. merciless chaos.

let's talk markets and investors looking ahead to the monthly jobs report tomorrow bring in a very cautious person. would you say that -- are you -- did you ever turn bullish? when did you turn bullish? >> oh -- end -- when we realized we were wrong end of 2023. we've been bullish this year. >> this year okay are you still? >> recession last year, calling for. didn't work out. >> right, but it was hard in 2022 and 2023 to look at market and think that it wasn't going to make new lows that was a different -- there was nothing indicating it should move higher, but it did. >> a lot of this has been -- well, i mean, a good portion multiple expansion right? earnings have clearly kept up, but the big turning point in 2023, ancient history now,

actually when silicon valley bank failed. at that point the market was flat on the year, and then it took off, because we essentially backstopped all the deposits in the country. instead flooded the system with liquidity. end of last year, hard to believe, but 11 months ago the s&p 500 hit 4,100 briefly when ten year yields hit 5 and janet yellen -- >> right, and the market took off again. frankly it's hard to -- we haven't been bearish this year bullish this year. >> and make should be bearish? >> maybe should be. >> 22 times earnings right? in an easing cycle now. what positive -- what hasn't already happened positive can still happen >> yeah. the only thing that could happen is that earnings actually come in as expected next year, because earnings expectations for next year are about, up 14% for the s&p.

>> 14? >> problem with that one of the questions asked in the preshow is, what is inconsistent one of the things inconsistent the market's looking for six easings. same sometime looking for 14% increase in earnings that doesn't happen. generally -- >> on ease six times if things weren't going great? >> right to me, that's the issue. by the same token, do you want to fight -- right now fighting everybody. fighting the fed, fighting the federal government in terms of deficits of 7% of gdp. it's an election year. so it's really -- in my prn re opinion. bar is high to get bearish from here ten year treasury yields above 4.5 the market tends to have indig indigestion. below 4.5. 3.80 hard to get bearish. >> you like gridlock what you're hoping for

i think we hit 35 trillion yesterday. >> i'm not hoping for gridlock i'm hoping for a real change that is much more a free market oriented because gridlock is not producing -- the problem with qe for 12 years is that it's created enormous moral hazard on both sides of the aisle. that spending doesn't matter when carville said i want to see it's a bond market scares everyone. no one republican or democrat now afraid of the bond market. to me, that's a problem. because we are just compounding the problems by continuing to spend money we don't have, and eventually the bill will come due for this. >> the republican party has not really talked about bringing down deficit. >> no. listen -- >> spending or -- >> this is a bipartisan. >> tax breaks -- >> if you believe only growth can solve it, i don't see -- >> matthat's my opinion. the only way out. >> democrats say we're getting growth, with the democratic

administration. >> getting it because, again, getting it because you're running deficits of $2 trillion a year so you're robbing peter to pay paul. >> think this year a rip-roaring economy hit $2 trillion. >> running deficits, as if we're already in recession never ran this, of this magnitude. >> fed's easing. >> in a rip-roaring stock market and it's all -- impossible to figure. >> us from are you frustrated nn politics is willing to talk about that >> talked with senator scott one of the few people that really cares about these issues and as a result a lot of his colleagues on the republican side hate his guts, because you're like, hey, listen who really wants to -- who wants to really reform social security hard to get re-elected that way. the thing is the bill will come due eventually my own opinion, gold is telling you that you can control currency and interest rates or you can control inflation. >> did you watch yesterday

>> did not. >> you didn't see scott? he and andrew going at it. >> a big fan of the senator. he's going to be banking chairman -- if republicans win the senate. >> and genuinely, he cares about this which is more than a lot of other people to be fair, to people in congress, the fed is indemnified all politicians from worries about the debt by increasing the size of the balance sheets why would you care >> what the hell were you doing? >> i don't know. did you -- >> weren't watching? >> i wasn't -- probably -- >> do you watch most mornings? >> i watch most mornings i do have it on all the time. i promise. >> he's coming back. missed your guy. first time onset senator scott. been on the set. yeah. all right. >> all right, my friend, charlie hu hussle. >> complex individual. as far as a baseball player, the best you know, i did talk to bench

was go to bring him on decided i don't know and saw comments he said, every game he wanted to get three hits and then goes, wait not three. wanted four or five hits every game the way he played. >> what's the relationship between bench and rose is it -- >> it's complex. >> complex >> it's complex, but no way that someone who went through this those great periods could not love him and -- then it's complex. feelings that -- he's a complex individual don't even talk about it. >> all of those guys were there, right? rose, concepcion. >> had been together supposedly. and george foster -- talking to george foreman the other day. >> nothing like them since -- >> thank you. when we come back, who has the leverage in the now two-day-old east coast sports

strike talking about workers demands and impact of shipping kcon containers piling up stay tuned you're watching "squawk box" and this is cnbc.

rick scott, senator rick scott, from florida. okay we had senator tim scott from south carolina on yesterday. >> continuing our conversation with jason. >> why i didn't see -- didn't see senator rick scott on yesterday. because he wasn't on, but senator tim scott was on and rick, senator scott from florida has been a -- a social security and, and entitlements sort of a hawk you, for years. i know a lot of -- my wife's maiden name was scott. scotts all over the place. in this case -- i said senate scott from florida >> he's from florida. >> okay. strike by 45,000 dockworkers on the east and south coast

entering its third day no signs's progress at bringing workers and port owners even back to the negotiating table. our next guest says both sides may see value in holding firm on their positions for the time being. joining us right now issers-the-stewart, a principal and talk about this. you think both sides benefit from staying out why is that? >> yeah. i don't know if they necessarily fully benefit from being out i mean, people could lose work here and nobody wants pain on people, but, you know, it's an election season and not like either political party will make much hay by using pressure on unions right now that's probably not helpful. as well dock worst, have htime h

old ld out dockworkers side saying profitable it isn't as profitable as people think they benefited from the red sea being, you know, 40% capacity than it was before, because of safety issues and the houthis. that's added 8% on ton miles freight rates benefitted from that as well as they've benefited from the panama canal, from earlier in the season had a pretty good year you cause destruction on the u.s. east coast, ships have to go somewhere, they're going to grow som grow -- go somewhere and they can sit a little on this prices will go higher. as well as not allowing any automation is foolish in my opinion. in the least efficient ports in the world and companies can sit and hold on that >> sorry go ahead. >> no. >> i would think in the short term, perhaps the union benefits

by staying out, but because of the fiery rhetoric and really harsh commentary coming from the leader of the longshoremen, and because this is something that is going to start impacting consumers, maybe over the not too distant future, over the next few weeks, where they see higher prices or shortages when it comes to things they're used to seeing on store shelves he really run the risk overplaying their hand if they haven't already and losing the public prn war. > >> -- opinion war. >> i agree harold daggett is charismatic and doesn't have a crystal ball and doesn't know how long it will go. we're talking about least efficient major ports in the world on the east coast largely because of lack of automation

and obstinance by union leadership and not much on being inflationary on the united states and i think eventually it it dissipates. again, i don't see the republicans or democrats taking sides here, although i'm pretty conservative, i'm pressuring unions on this issue it could be a number of weeks here where they can hold firm. and the that will cause an impact on everybody's -- on everybody's dinner table for sure. >> urs, thank you for talking this through with us may need you back in the next week or so if this continues. >> don't forget the united states a massive amount of grain exports worldwide and that shuts off the u.s. east coast it's going to dramatically impact freight rates. >> okay. urs, thank you. >> thank you. coming up, breaking economic data new bljoess claims are next when "squawk box" returns.

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about a half minute away from the weekly jobless claims number futures right now have improved also from earlier bustill down across the board

rick santelli standing by at cme in chicago last time, rick what was it? what are you expecting >> expecting continuing claims remain above 1.8 million getting a number lcloser to 200,000 on initial claims. and as steve points out ac accurately historically levels sig scant he higher. quite well behaved and argue again any significant velocity to rate cuts here we go data should be hitting wires momentarily. joe, expecting a number around 221,000. it's a bit higher. initial claims 225,000 slightly revised last week from 218 to 219,000 and believe it or not, well-behaved as 225,000 is second highest of the week earlier in the week, 231,000 and we see 17 consecutive weeks above 1.8 million and continuing claims, pretty darn close to

expectations 1 million 2826,000 subtle revision in the rearview mirror to last week. we see yields are largely unaffected by the numbers. listen, whether you look at improving, even the chairman quite well-spoken in his last q&a pointing out overall economy is solid and labor market slowing but not slow and they're doing their best to hold the economy in a solid place i understand that. we could question easing it's not about what we want the fed to do. it's about what the fed "will" do still a litany of economic releases to go today of course, we're going to start to see better met trishgmetricse service side year view adp certainly looks like the game will be about yields to the up side. gone from a two year low yield close in twos to now a four week

high, should we close where we're currently trading, right around 365 if you look at tens, hovering around 380 that's up a couple on the session. close here, it would be exactly a one-month high yield close that's after coming off of 15-month low yield close things turned. dollar index a tough one, joe. a lot of my trading buddies had a lot of stops triggered my technicals looked last week close under 1.5. follow-through be careful better to have small loss on the dollar index without a clear violation of 100 all other abilities, to be short, just kind of getting in a bit too early. back to you. >> okay. all right. good rundown, rick thank you. joining is right now for more on the jobless claims the economy as we head into the election and a look ahead to tomorrow's big labor department

report is lindsay owens. executive director at brownwork collaborative and also a guest and what we heard from adp and anticipate tomorrow? you first? >> see hopefully good news tomorrow sticking around 4.2%. but i want to interpret today's numbers and hopefully tomorrow's in light of powell's remarks monday said something extraordinary that he did not think that bringing inflation down to his 2% target would require anymore deterioration or softening or cooling in the labor market. it's worth talking about for years heard the opposite on the left, on the right, folks who come on the show saying we need to see unemployment at 5%, 6% to get inflation down to the 2% number and don't have a chance to think whether or not

we got it right. it's important to realize we never had to choose. we could have a good set of stable prices, a good inflation print and a healthy and strong labor market that's really what we're seeing now. >> joe, do you think this continues? the claims numbers are low, becky, because resip yaens rate 10% below historical average not taking up jobless claims for a majority of reasons. could be benefits expired from previous usage the fact severage, can't file. i don't think claims are a very good proxy consumers' assessment to the labor market is terrible the conference board suggested unemployment will continue to rise the most important part to me of tomorrow's report. when we expect the rate to go up. >> i would think that powell is watching that closely, too i think better than expected cutting for a reason. >> cutting for a reason. >> why cutting 50 basis points if everything is --

>> exactly right one, they, the fed, above neutral in an even state one factor other factor look at three-month rate of change, or three-month moving average, headline, private, private ex health care whatever you want. it's clear lab are market is down shifting and want to get ahead of it cutting rates to stabilize things ultimately i don't think they'll be successful but i understand their logic. >> why don't you think successful >> history of soft landings isn't have good. housing market totally frozen yet continue to make cyclical highs in em the employment may get a boost rebuilding of southeast corridor but fundamentally upwards of a million workers probably don't need to be there given where demand is right now. >> well, lindsay >> look, all recessions start with a slowdown but not all slowdowns lead to recession. >> true. >> the key, hold powell to the promise that we can get to that 2% target without deterioration in the labor market.

>> that's not what he promised what he also said last week was, look we're going to be reliant on data still looking at things. may or may not have additional cuts we are in position to ramp things up. if it looks things are deteriorating. in a position to do nothing if it looks like things are better. >> exactly right numbers tick up, get to 4.3% sort of worrying reasons right? employment falling off then he should consider 50 basis points in november >> i would argue that while the labor market is certainly the more important of the two mandates at this point and the fed signaled that. there are 24things happening now wonder if inflation will stay tamped down. first would be the dockworkers' strike could be incredibly inflationary second what's happening in the middle east. the third would be the rebuilding that's going to have to take place in this country because of what just happened with the damage with hurricane had lien. >> -- helene. >> interest rate tool not a

great fix for problems you outlined. >> right could raise inflation and keep them from cutting rates further. >> could on the other side of the balance sheet. my own view, we see worrying numbers tomorrow on the labor market side, 50 basis points should be on the table in november look, when inflation was rising they didn't hesitate to do consecutive 7a basis points hikes. we want to see the same approach vigor and concern on the labor market side. >> the concern has been that they stayed too high too long and -- stayed too low too long and didn't raise things quickly. they don't want to repeat that mistake. joe what do you think happens? >> the fact the fed went 50 in september and thought they would do that and stuck to my guns on that i actually would like to see them skip. you mentioned the middle east, but clearly what's happening with the dockworkers' strike, potential for supply disruptions, and look at pce,

cyclical prices within the deflator, running 4% get a fill up to growth from rebuilding from that horrible hurricane effects. wait see how things play out. >> and lindsay, groundworks is -- very progressive advocacy organization obviously, and just looking at some of the comments. nearly all of the inflation is attributed to outsized corporate profits and price gouging but you're talking reasonably about what causes inflation and it's coming down. and it goes up based on supply chains, the things that really do cause igs fnflation. >> yeah. >> how do you reconcile with the viewpoint it's corporate price gouging in a causes it why don't they gouge all the time how can -- why does inflation ever come down >> yeah. a d.c. based think tank. >> very progressive. >> we are progressive. >> very. i'm looking at it. >> our motto -- >> you know this outfit?

>> motto, we are the economy we believe a strong economy starts with a healthy labor market when you and i are doing well that's when the economy does well, what our work stems from. >> what do you think causes inflation? >> a few factors demand side, supply side factors and markups accelerating inflation. the vice chair of the fed said on a number of occasions through a period of high inflation she felt like markups from an opportunity for us. >> why doesn't it ever come down then, inflation? >> these factors emilameliorati. >> why would corporations ever stop gouging if they're able to? >> a number of factors first, competition right? hard to overturn -- >> hard to argue that's what causes -- >> someone on the other side of the street offering a lower price point. look, concentrated and consolidated markets in our economy and it's given companies

a lot of pricing power and some of them have used it during this period of high inflation to go further than they need to do gild the lily. i think it's one of many factors. >> so it's a money and credit problem. spend too much and fed monetized debt accelerating, money creation, causing inflation, or most of it. >> did you see yesterday, yesterday had this discussion. i forgot about larry summers comments did you see? >> yes, i did see -- >> larry summers warned -- when the fed as zero and a lot of these programs were being -- you know, proposed he said, warned, do not do this. there will be -- the -- inflation. >> not super great during this period predicted at one point 10% unemployment to bring inflation undercontrol and at one point predicted a one-third chance of inflation increasing, one-third chance increasing and then

decreasing not super solid predictions. >> to larry's credit. >> right about the an flation surge in '21. >> did see a period of high inflation. everyone is aware of that. >> corporations decided to start price gouging after not doing it 40 years. >> i think, look, in a simple way, companies really need means, motive and opportunity i don't think companies just got greedy in 2020 out to make a buck a long time and i don't think secular increase in -- >> saying it's a bad thing to be out to make a buck >> absolutely not. i'm not a huge fan of companies running up the score during those time periods. >> lindsay, thank you. joe, thank you good to see you both. >> thanks for having us. when we come back -- >> a bump on the log over who. >> sam altman, what does he gain from his company's latest

funding round aside from more than $6 billion? talk about that next. right now heading to a break check out the s&p energy sector up more than 14% this week on pace for the best week since january. crude oil gaini ing ground again this morning wti at $71.58 a barrel stay tuned you're watching "squawk box" and this is cnbc.

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welcome back to "squawk box." back down triple digits. i don't know if it 4had anything to do with the claims number nasdaq down 49 rick said the numbers were -- >> not far off from where we've been all session. >> tomorrow's the big enchilada. >> these numbers, thursday doesn't play into tomorrow's numbers. adp supposed to match against it better than expected

we'll seat. and in an interview with our own jon fortt, looking further ahead to what he sees as the next step in the evolution of a.i. >> this is the now, the beginning of a new wave called enterprised a.i. and after that as we're entering into enterprise a.i. we'll simultaneously develop and cultivate the wave after that, which is industrial a.i. >> on those new blackwell chips from nvidia, wang calling the current demand insane. joe? openai raising money in the latest round, start-up chatgpt openai didn't name investors part of that new round but we are told it was led by thrive capital microsoft, nvidia, softbank and others also taking part. joining us to talk about the

company's plans and skyrocketing valuation, liz hoffman, business and finance editor at semifor and our own kate rooney. not, on earlier, kate rooney vera said on with you before. >> no relation, but, it is confusing. >> take it away, kate. >> yeah. unprecedented amount of money even in silicon valley terms $6.6 billion at $157 billion valuation and some of the biggest names in tech. softbank in on this round. nvidia and microsoft really doubling down here plus new venture investors thrive and ed will the round brad's firm. also had, who else in the round? anyway, a lot of new investors and big tech names we didn't have before. something to point out sheer number and valuation look at big publicly traded

names, 157 billion posted money, puts openai above names like lockheed martin above goldman sachs. reading a public company among the most available in terms of top 100 most valuable about companies marking a new era and endless need for capital by these a.i. companies openai yes, $6 kbl billion a lof money what they need to spend on, infrastructure back to nvidia need to spend on the chips. not clear this is end of the road i xmexpect this company to needo raise more capital going forward. see about an ipo venture capital investors more than eager to spend on openai. >> liz, do you think that -- or when will we say, oh, my god we could have gotten into this with a valuation of $157 billion? >> a point at which you risk pricing yourself out of the public market. we saw some of that in the late 2010s.

argument traps stripe found its way there recently you want the ipo to be down around -- a lot of money on sidelines here the strategic investors are notable. there's maybe an argument that investors should have more incentive to fund these companies at lower cost capital a little more patiently perhaps than people looking for a return, though of course strategic investors come with their own kind of regulatory headaches, too. >> sounded like you didn't think we would be saying, oh, my god $400 billion now what a deal at p-- i would like you to connect the dots, we get to bottom line that warrant that kind of, when and if we get to bottom line results that would warrant that valuation what does it look like, how do they do it monetize it? >> figure how to make money. hard to imagine a technology

that can make this much money for other people can't figure how to make this much money for itself you got to value he's in things on a top-line private stocks at the moment not on a multiple or earnings. recently if you look at nvidia earnings recently, if you look at nvidia, which is certainly extremely highly valued and has been a rocket ship in a way that might raise your eye brows, and tpg you think of cisco as the plumbing, the infrastructure darlings of the current tech boom, so i don't know that it's helpful to compare the hype now to the hype of 2000, because that ended badly, but this company is building things that real people want and real companies need and are spending money on it feels a little more genuine and sort of economically

productive than other hype cycles, particularly the unicorn boom >> you can't tell me exactly what the business model looks like i had no idea google would lead everything in advertising with search and words and the way that played out. i still -- i need help trying to understand exactly how all the money gets generated for artificial intelligence. you need chips, and i understand nvidia but i don't understand how -- i have seen what the iphone can do and i don't need the iphone for what it can do with ai. i guess it's early >> i think they have to stick the landing when it comes to white labeling ai and what they are describing as the ai economy. getting fortune 500 companies to use their technology on the back way of you know they are using

ai, and they have a million enterprise customers and they will have to up that number to keep up with growth. they are going to have to capture the startup community and the enterprise community and will have to win to justify the valuation at this point. >> liz, maybe i will go on open ai and say how is -- how are you going to -- chatgpt, say, how are you going to make money? is that -- do they know? is that trying to measure yourself we can never figure out the brain because we are using our brain to do it will they make money >> you might look at perhaps google in its early days, which, you know, huge companies were built on top of google and at some point google said we should charge for this, and they started to make the license

available and it became a cash cow. every generation learns more about how to monetize. hopefully we have learned more from the social media area about how to monetize responsibly. >> i just asked chatgpt on how they were going to make money? i think we are on to something partnerships, consumer products and research and consulting. that runs the gamut here but that's the answer of how are you going to make money. >> that's cool it didn't go up and go -- that's good, asking about itself. >> exactly >> excellent anything else, liz anything else popped into the ai head -- that's not artificial but real intelligence? >> these companies are under scrutiny with the artificial

intelligence startups, and they look like takeovers by any other name and there's a lot of control and microhighers, and there's no way around crystallizing that real ownership stake which is you can confirm having covered this is a term they have been touchy about from the beginning here. >> okay. kate, anything from you? >> yeah, i would just -- last thing to add is competition. rich valuation puts more pressure on them to stay ahead they have a little bit of a head start based on the shear amount of money they have been able to raise. meta is nipping at their heels the competition is something to watch. can they get so far ahead the competition not an issue it will be something all the big companies will get into, especially meta, and that's something to watch threatening the valuation. >> very good

thank you, liz, from -- what is that guy ben simafore >> yeah, our heditor in chief. >> and -- >> yeah, kate. >> and sara friar will be on this morning on "squawk on the street." "squawk box" will be right back. discovering innovation today, helps drive growth tomorrow. as a leading global asset manager,

pgim has established a track record of helping investors capitalize on growth opportunities. pgim investments. shaping tomorrow, today. i can't believe you corporate types are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

he has a look at some of the morning's premarket movers >> becky, joe, we will set things up with him and hers after the food drug administration removed drugs in shortage, and while those are in shortage other companies were allowed to fill the void now that they are not officially in shortage restrictions will be listed again on the compounders

to halt production, and then you have wolfspeed, and those shares are lowered due in part by a dune grade from mizuho, and those shares are down. stellantis also in focus down by 4% this is, again, due in part from a barkleys downgrade from overweight to underweight. and they are struggling with the increasing competition with chinese automakers as well stellantis, one of the stocks on the move check out cnbc.com/pro for other analysis with the calls. >> very important. >> yeah, the subject and the

object of an investigation >> the reason you are looking at this is -- >> can ai look at itself and -- it did, and it's trying to see your eyes without a mirror >> yeah, you look in your child's eyes and you can see your eyes. >> that is good. >> a final look at the markets it doesn't mean anything about where we will be at 4:00 like most days. join us tomorrow, jobs on friday, and "squawk on the street" is next. good thursday morning. welcome to "squawk on the street." i am carl quintanilla. the markets continue to monitor israel and iran and th