and the two-year note sitting at 3.971%. let's show you oil real quick. talk about bitcoin but we'll show you oil right now, wti is $73.25. bitcoin, still over -- did you see the news from hbo about who may be satoshi nakamoto? >> he looked like an average guy. >> "squawk on the street" begins right now. ♪ good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at post nine of the new york stock exchange. futures steady on the back of tuesday's 1% gain, a heady mix of corporate news today. google, boeing, pfizer, nvidia, and some macro with fed minutes and more than half a dozen fed speakers today. our road map begins with the storm watch, though. the monster cat 5 hurricane milton bearing down on the florida coast, tampa bay bearing

for a possible direct hit. its first in more than a century. plus, the doj's google break-up threat. the government's lawyers say it's on the table as part of an antitrust remedy. speaking of big tech, the sector coming off its best day in nearly a month, a rally which leaves the s&p within striking distance of record highs. >> let's begin with the justice department mulling this break-up of google on antitrust grounds. in a court filing last night, doj said it was considering behavioral and structural remedies that would prevent the tech giant from using products such as chrome, play, and android to advantage google's search. google responded in a blog post, calling the doj's proposals radical and sweeping, adding they would risk hurting consumers, businesses, and developers. a federal judge is expected to make his ruling next summer, jim, and we are expecting a fuller proposal next month out of doj. >> this is devastating. i had hoped that you could make a -- not facetious, but an

actual case that maybe you'd get some of the parts to be more. that is not at all what they want. what they want to say is this company is a monopolist. it's got to become the equivalent of a greyhound bus. it says, they're steering everything, including a.i. one thing that is the big weakness of alphabet is a.i. because they're not -- gemini is not regarded as the top-flight issue. >> they're certainly in a really competitive race when it comes to a.i. >> exactly. the government dismisses that. the government dismisses anything. if you read this, it's almost like jonathan kanter, who worked at paul weiss, by the way -- >> jonathan kanter, who runs the doj's antitrust -- >> he understands the game here. >> -- division. >> it's like he read -- david will like this -- chernau on standard oil, rockefeller and said, you know what we're not going to do? we're not going to create eight mini oil companies so everybody does better. we're going to take this company and say, you know what? you screwed up.

you monopolized, and now you have to pay. we're going to have a committee in there that's really going to run the company and decide how well you're doing. david, this is state-sponsored, i think, destruction of capital. >> interesting. i mean, google obviously puts out a three-page response or so, talking, of course, about a radical and sweeping proposal that would hurt consumers, businesses, and developers. here's some part of that. concern the doj is already signaling requests that go far beyond specific legal issues. they say, hey, the case is about search distribution, but rather than focus on that, they seem to be pursuing a sweeping agenda impacting numerous industries and products. and a lot of unintended consequences, to your point, jim, one of them being hampering google's a.i. tools. they say risks holding back american innovation at a critical moment. they talk about a.i., of course, and being a new industry and

hard to think of a technology more important for america's technological and economic leadership. >> well, they don't have to worry about that. this company would be far from a leader. how about this? these remedies could require google to finance and report to a court-appointed technical committee that helps administer the remedies. what is this, the teamsters union where you have a central master come in, decide who's going to get paid and who's not? this was -- i don't know. i mean, carl, what they're saying is, okay, there's this company, who's a bad actor, and when you're a bad actor in this country, here's what we do. we make it so you can't be powerful, and here's ways we hobble you. you know what? >> they have gotten incredibly powerful. and so, they are trying to actually use the law to curb some of that power. >> did you ever read the book, "misery" or see the movie? james caan? they're hobbling google in the

same way kathy bates hobbled james caan. >> haven't you generally been in favor, though, of a sum of the parts valuation that's more than this one? >> i was, but kanter must watch this show. i like kanter. funny. good guy. but it's like he watched the show and said, you know what? i'm not going to give cramer, who has, by the way, a top ten piece every morning for -- is it cnbc investing club. here's what he's not going to do. he's not going to let anyone make money. it's almost as if he says, short google and no invitation to your funeral. >> so, you don't think that a break-up would be worth more? >> no. i think he's basically saying, look, we got to punish companies that do this stuff. and that means root and branch, we have to make it so this company is not powerful. >> because even though it would be broken up, it would be hobbled in doing so. you would not empower any of these units that would be on their own. they would all be hobbled to a

certain extent because of reporting requirements. >> antitrust was part of the decision on the publishing case. that's why i mentioned stephen king, by the way, who's a titan, every bit as good as dickens. >> no -- nothing says it's going to happen, jim. let's just make that very clear. even if the doj were to go down this road, and it's only one of a number of possibilities, it doesn't mean a judge is going to agree with them, right? >> yes. that's true. and this is sweeping. the judge may not. but we don't know. this judge so far seems to be inclined to believe that not nefarious but there are just ways that this company became way too powerful. >> it would be historic. >> historic? >> yeah, it would be historic. >> i'm trying to thinking this is super historic. this is not att break-up either where you create a lot of value. >> right, modified judgment under judge green, ma bell, 1984. >> southwest bell. >> created a number of -- all the baby bells, which then got back together as well. >> that was important to ruin the justice department. >> they break them all apart,

and 20 years later, they were all back. >> microsoft post-consent decree had a period of subpar growth. >> that's absolutely true, but since then, they've been able to avoid a lot of scrutiny, but yes, that was a great short, joel kline, titan, came up with that proposal which was to make it so that there was a central -- it was netscape, about the browser. this is not about the browser. >> david boyd's lost yet again, as he often does. >> wow. that's good. but there's -- google will be a shell, a shell of its former self if they do this, and i think what this is, david, this says, no one's bigger than the u.s. government. >> okay, well, we'll see if it happens. >> but it's a well argued -- kanter -- it's well argued. >> alphabet might argue it is. amazon might argue it is. apple might argue it is. >> do you know who wouldn't argue that it is? >> who? >> the people who are creating gemini and saying, why are we

behind grok and meta a.i.? >> grok is interesting. >> i've been using the chatgpt lady. i signed up for my 20 bucks. i've been using her, and she wants to talk all the time. she's one chatty person. >> i met pink, meta a.i. is the best on pink. unbelievable picture of me, pink, and my wife. >> what do you pay for? you pay for any of these things? >> what, picture of pink? >> your a.i. >> i pay for chatgpt iv because the regular chatgpt is wrong all the time. >> do you use it? >> i use it every day, yes, i do. >> in what way? >> what do you do when your sports team loses and you're -- you want to be really depressed? >> you're looking for consolation. it consoles you. do you use the voice or just the query where you actually -- >> okay, i'll give you an example. i will say -- >> i'm just trying to find out here. >> okay. i will say, why should honeywell divest its uranium enrichment business when that could be considered part of the climate

resolution? it turns out it's got a fluoride business that is much more like the fluoride businesses that are leaving. i find that it's actually smarter than we are. it used to be dumber than we are. now, it's kind of like, for chemistry, david, it's better than we are. >> it's better than we are. >> we didn't want to ruin our transcript by taking chemistry. >> one of the people who created neural networks, jeffery hinton, got the nobel prize. of course, he is amongst that group that is very concerned. >> i know. >> about the ability of a.i. to ultimately -- and then pursue its own aims and interests. >> well, david, i know that. >> that it's not widely shared that concern, but certainly, it's one of his. he was at google and left not that long ago. >> i certainly would think that i would not -- look, if jonathan kanter gets his way, the antitrust -- i don't think i would want to work at google. i would say, you know what? i want to work at roblox. >> that was a joke. >> well, i'm just saying, pick the place that's most under fire after google.

i mean, this is -- i don't think people realize. when i say sweeping, carl, what they're saying is, if you think there's anything at this company that's going to be able to make money after this, you do not know how to read. i want to chatgpt this thing, say, is there anything left of google that can make money and see what it says. i haven't had a chance to do that. i'm not kidding. this is incredible. >> why would doj be interested in removing a company's ability to make money? >> i think we are in a government right now that just says, this government is not going to let these companies run this country, these nation-state companies with all this money that have been bossing us around, telling us what we can read, what we can do. that's over. we're the government, and we're not going to let companies be bigger than the people. this is about we, the people, versus companies that think they can tell us what to do, and what to read and how to think. >> and that's wrong? >> i think it's wrong. >> the companies should be able to tell us? >> i think it's wrong because i don't think the companies really have that power.

i think the competition among the nation states is incredible. >> you keep going back and forth. you call them nation states. you were literally -- >> i'm being completely consistent on this. completely. that sixth inning was so horrible. >> you've been completely inconsistent on this. >> i have the right to be mercurial and arbitrary and if you take that away from me, i'm out of here. >> you know the power of these platforms is enormous. it's unlike anything we've ever seen, really, in many ways. maybe going back, because you are -- you read history all the time, maybe to the late 1800s. >> they're no more powerful than price bryce harper is at this moment. he's, what did they say, a pitiful helpless giant? >> it's getting interesting now. >> david has a man on the committee, obviously. >> see cohen in the parking lot? >> just loved it. he's in his element right now. steve cohen. who knew he'd be out there greeting mets fans in the parking lot? it worked, too, so he's going to do it again today. >> he had apple from 3 to $200.

he never did that in and out nonsense. >> the tech sector coming off its best day in several weeks as the stimulus rally in china ends with a thud, worst day since '97. we'll get to that and take stock of hurricane milton when we come back.

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xfinity mobile was designed for where you need it most. xfinity internet customers, ask how to get a free 5g phone and a second unlimited line free for a year. futures off their lows of the morning. the tech sector definitely rallied on tuesday, posted its best session in nearly three weeks, helping to put the s&p within about 0.3% from an all-time high. jim, the bull market turns 2 this weekend. >> yes. >> in which time it's been up 61%. >> this one didn't happen, as far as people are concerned. it was wiped out by powell being too soft and too hard, all untrue. we got too much in the weeds. we have too many fed speakers. we are being, i think, way too disingenuous when it comes to what's really going on. companies are -- they're doing

incredibly well. the s&p earnings are very high. rates are coming down. these are all the things that you want to see, and yet, the gloom, as -- this morning, david, you get up at 4:00 and there it is again, the big sellers and the futures. what are they thinking? take it right down to granularity. pepsi yesterday, everybody hates it. they take the stock down two bucks. by 9:30, the stock is up two and then it closes up three. sat saturnine. do you remember what saturnine -- >> it means lugubrious. >> also dour. >> i go through more of my synonyms. >> carl, i -- >> morose. >> the reason i say it like that is because, think about the downgrades we had monday. we had an apple downgrade and we're going to get to the piper teen survey and amazon downgrade. this morning, frank holland had

a particularly good guest talking about how this is a good chance to buy amazon, just come down because of the downgrades. and then let's go back to what this rally is really about. it's about one stock. it's 9:16, i haven't mentioned yet, it's about nvidia. yesterday, nvidia had a global summit, where i have to tell you, when i was looking at what was covered, here, this is what was covered. you had health, industrial revolution, financial plus cyber, climate, autonomous, and then my favorite, space, where they are now setting up a huge radio telegraph to see who is transmitting to us from outer space, talking to us. >> yes, of course. the aliens. >> they're not aliens. they're trying to get in touch with us. >> that doesn't make them aliens? >> aliens are people trying to come over the border. >> they're trying to call us and nvidia is the operator. >> absolutely. >> jensen huang is an alien. >> now, he's hardly. he's actually a renaissance man, not unlike da vinci, but i think what's interesting and i'm not

being -- i'm talking about someone who is thinking so big within new york. >> i know, i know. >> nvidia is working on a sixth day higher, the first higher high since june, thank you, bespoke. i think jensen's wealth now eclipsing intel's market cap. >> he had a better year than intel. >> he sure did, over $100 billion in wealth. intel, obviously, below that. by the way, yesterday, microsoft azure tweeted it's the first cloud running nvidia's blackwell servers. openai also announcing as well, apparently, that they received some shipments. that's october 8th, nvidia has a third quarter that ends -- fiscal third quarter that ends in october, so that should imply, what, blackwell starts to hit this quarter? >> the yields are going to get better and better and they're going to produce a 99% of these things are going to work, right now, they do not have that kind of yield. david, what you missed is that your buddy, pal, friend, elon musk has coupled a number of

these high-powered chips to create the greatest super computer of all time, and what will he use that for? >> it's xai. >> that's a separate company. i didn't say tesla. >> he's already got a huge datacenter up and running already in tennessee with the money they raised at xai. >> he contacted governor shapiro in pennsylvania. he's mr. battle state. >> you know, i don't -- i mean, one is for a.i., for xai, and its mission, and the other, obviously, is tesla and self-driving. >> go to that last conference call when he actually gave a nod to jensen huang. i think it was his first nod in history. realized that jensen huang is smarter than he is when it comes to this. that's what he said. there's a podcast, david, no one knows that you're dissing me by not talking to me. it's a podcast. every day, we just go to it. okay? don't forget my top ten. >> we're going to get to the robo taxi day, of course, tomorrow. also some sales data for tesla out of china.

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seven minutes before we get started with trading at the new york stock exchange. let's get to our "mad dash," want to talk a little southwest, a company, i think it's fair to say, under a bit of pressure from the activist, elliott, and the ten directors they've nominated to take control of the board. >> as usual, i turn to you and wonder what really does an activist need, other than the fact that they have pressured this company. the company has taken very specific actions. one board member has bought more than $100 million worth of stock. i say, wait a second, there's a lot being done here and yet it's not enough. when is enough enough? and i happen to think elliott's work is superior. >> that's a good question, jim. i think others are asking. it's hard to know at this point where sentiment really fully stands on this. to your point, and this is since that investor meeting, right? >> congratulations. >> they came up with targets that people liked.

elliott still wants jordan out. it's as simple as that. >> i understand that elliott is not done. i will say that a lot of these should have been done before, but does it matter when they did them? and the airline stocks historically aren't so hot anyway but little noticed, this iceland tie-up. iceland air is the cheap way to go to europe. southwest to iceland is actually a terrific thing to do. so, they've got a lot of things i really like about this, but then again, i recognize that there are real issues involving governance here. >> right. >> and i wouldn't be surprised if there isn't more discussion. >> what about this upgrade today? it's only to a hold. we both have it in our hands from jeffries. >> credit where credit is due. they can get behind a lot of this, but not all of it. and that's where i think elliott can come out. you know, david, is this company a rogue company? no, i think it fell behind the times and is trying to catch up. maybe they actually should just say, elliott, come in and help us. here's three board seats, if

elliott would take three board seats. i don't know. >> you don't know when and if -- it's rare that you see that kind of a play for that many board seats. obviously, if they were to get them all, they would take control of the company. >> mr. jordan is trying to bring the company into the current age. there is a sense that they were t troglodytes. would i buy the stock here? i don't think there's as much downside if elliott is still doing some things. how you been, okay? >> yeah. >> those sneakers are ridiculous. >> they're great, aren't they? >> we're going to talk about them and the teen survey. these have been the least ever -- will you hold them up? this is the least teen survey sneaker in the history of -- it's a podcast. we can't help you. >> maybe they'll give me more of them for free. >> are those bolero shoes? >> my god, i'm so inflexible. i got to work on those hips. like that? >> you look like gene kelly. >> this is not working for the

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is brought to you by nuveen, a leader in income, alternatives, and responsible investing. hurricane milton now down to cat 4 strength. nbc's jay gray is in fort myers, florida, this morning. good morning, jay. >> good morning. cat 4, but it's only 2 miles an hour below a cat 5. don't pay attention to those categories right now. this is a major hurricane closing in on the west coast of florida. we're in lee county in fort myers. 400,000 people in the mandatory evacuation zones here. the good news is it looks like a lot of them have moved to higher ground, but before they left, they prepared sandbags, boards, making sure they can prevent water getting into areas it's not supposed to be. this, again, is a major hurricane, closing in on this area, and the time to prepare, the time to evacuate quickly running out, guys. >> jay, appreciate that very much. we'll talk later in the morning. jay gray in fort myers. let's get the opening bell here

in the cnbc realtime exchange. at the big board today, it's empire state realty trust celebrating the 46th annual empire state building run-up. and at the nasdaq, it's advertising week new york, celebrating its 20th anniversary, as we managed to undo some of that premarket weakness. >> this has been a consistent pattern. yesterday, it was very interesting. we looked very bad and then we suddenly got the bond. the bonds started going our way. the market is still attuned to the bond market. interest rates are going up again, and yet we saw mortgage refinancings, wow, when rates go up, the things go down. david, we are a moment so sensitive to rates that it's almost as if you can track it week to week about what the fed can and can't do. >> yeah. >> if they don't get rates down, then suddenly, you have a stalling of refinance. >> those overlevered or highly levered companies, they're in the algorithm, clearly, and you just see them yo-yo every time

rates move. i think warner bros. discovery, for example, shares of which had a little bit of a nice rally going, and then, boom. >> well, that's -- >> back to below seven. that's definitely in that basket yesterday, i noticed, weakness. it's not alone, but i just point that out because it is a handful of names to keep an eye on that are typically considered to be in a particularly, let's call it, long-term precarious position. longer term, and certainly would benefit from lower rates, potentially, over time. >> or change the administration. so that you could have more -- >> or consolidation. yeah. >> look, carl, i think that the market -- you correctly hit on the two-year anniversary. this is a -- very much a two-year anniversary kind of day. like, wow, maybe i should buy stocks. no, look at interest rates. oh, geez, downgrade, microsoft, and that's been this whole consistent, let's get people to trade. now, i think that if you just held certain stocks that have

been overly traded, you'd do so much better, but you come in and feel like, wow, i don't know, the futures were down this morning and china's not so good and i worry about what some fed person is going to say and that's how you lose money. >> i'm thinking of the upgrades today. honeywell, affirm, home depot, lowe's, and love, which you already did. jpmorgan yesterday, neutralizing their long defensive, short cyclical because they think this data, post-fomc, might mean the business cycle runs up again. >> well, i know, i think that's hard to happen, because i -- look, i shouldn't say that. i had mr. gibson on from paychex and the number of small and medium-sized businesses continues to grow, which is really incredible. backbone of our country, and there are just pockets of strength everywhere. >> 12-month forward eps, all-time high. >> i know. at the same time, you do have some notes saying that lower income people, not doing well, and there's struggle, and jay powell is very sensitive, the fed chief, to the idea that we're now in a less equal

posture. at the same time, wages are going higher. david, you know, if we're not, at this moment, someone might say, you know, when are they going to raise? and yet, the sensitivity to rates is so high that if you -- if they said raise, then you know that businesses would just pull back. >> when are they going to raise? >> i'm saying that the data is -- talking about the data being pretty positive. >> yes, it is. it's seemingly positive, though nobody's talking about a raise. it's just a question as to when we're going to get the next cut. >> how about credit delinquencies? i don't know. if one more company upgrades affirm, that's what i was worried about, but buy now, pay later does not have that. i'm just saying. >> morgan stanley goes to $37, equal weight, higher income users getting attracted. >> how about -- i have to go to the teen survey because there's something that i have been pushing that doug mcmillon watches the show. what's the matter? >> nothing. go ahead. >> walmart is the place that people shop. remember we used to hear there

were mercedes in the lot at costco? no, no. now there's just kind of a, you know, younger people drive really kind of cooler cars than we do. and they're in the lot of walmart. walmart is filled with people they're never expected would be going to walmart, which is middle to upper income. >> they get a lot of mileage out of this teen survey at piper sandler, don't they? they go all over the map. apparently, they watch at least the male teens watch amazon and cable. who knew? they're still watching cable, male teens? >> are they watching it through youtube? >> probably. >> we know that goldfish remain teens' favorite snack. >> i haven't gotten out of my teens when it comes to goldfish. >> at least four straight reports where goldfish has been number one. >> goldfish is incredible. it's a great snack. >> mark from campbell's has done great extensions of goldfish, and i like campbell's here. if you want to be in the food stocks, they have a very defensible position. >> purity. just go with the old-fashioned,

straight-ahead goldfish. >> the other surprise is nike on footwear preference and athletic wear, just number one, report after report. >> but slipping. but not -- new balance, nipping. but i made -- it made me think that the nike term, which david said would take multiple years, may not be as difficult to accomplish if you have someone who knows shoes as opposed to someone who knows paypal, i don't know. >> i was just quoting any number of analysts that came out last week, warning, after those earnings, of course, as well, that this is a marathon, not a sprint for nike. by the way, do we have any sense as to the accuracy of this piper sandler teen survey and whether it really is meaningful in any way? >> you really had to go there? >> sure, i had to go there. we brought up the fact that nike figures so prominently, and meanwhile -- >> you had -- look -- you had a -- they didn't ask, by the way, do you still wear nikes, despite it being dismantled by someone who shouldn't be the ceo? that's not how the questioning goes. it's not like that.

>> guys, i got to get to boeing this morning, because we haven't yet. the stock is down 3.3%. the news is, of course, boeing withdrew its contract offer with the machinist union after essentially negotiations have broken down. more than 32,000 boeing machinists, you may recall, walked off the job a few weeks back, september 13th. boeing, according to phil lebeau, losing about a billion dollars a month or so. or costing them as much as that. you know, we talked at the outset about the free cash flow losses mounting or how they would mount. now we're going to start to count given one month since they walked off the job. there's a capital raise that has been discussed of some $10 billion. when will that take place? perhaps after earnings are reported from the company towards the end of this month. there had been an expectation, perhaps, that you would wait until you signed a new deal with the unions, but it may be that,

in fact, the capital raise takes place without a deal. and they don't, jim, seem to be very far. i mean, they're still talking about trying to get the pension back, the machinists, which is just never going to happen. >> these are about as far away as i've ever heard. listen, ortberg does not seem to be a fire brand, the ceo, not as contentious as the longshoremen were, but this is a cash flow story, and it is a -- a company that can -- that's too big to have a problem. >> it's another company whose market value is below that of jensen huang's net worth. >> i hadn't thought of that. i know that things should be measured by that exclusively. i was more thinking about the fact that it's a duopoly, and if one of them goes down, we are all hostage to airbus. you'll have to excuse me for not being broader. >> you should be thinking about things in relation to jensen huang's net worth. that's how we should measure all market caps now, above or below

jensen huang's net worth. we could do zuckerberg or musk or bezos or arnauld. >> what is -- he comes in, and i thought he was going to spend a lot of time on the factory floor, maybe more of a rapport going. david, this does not sound like a ro apport situation. >> no. >> sounds very, very -- >> nora rapport, and those astronauts are still stuck up in the space station. they're happy, by the way, they're astronauts. >> what, have you been in communication with them? >> i'm guessing they're happy if they got an extra eight months when they were only expecting to be up there a couple weeks. >> it's hard being on the road for work, yeah. >> do they have cable there? youtube? >> we didn't mention s&p, the credit outlook, potential downgrade to junk. >> on boeing. >> that's so right. >> by the way, i'm looking back at the wells underweight move in

september. we assume a $30 billion equity raise by '26, which is more than some of these -- >> carl -- >> that's through another year, year and a half. >> they knew about this possibility so long ago, and when they still had a market cap that raised a lot of money, but no, they have their head in the sand, david. >> i'm looking at something, jim. >> it's -- >> i'm doing it. >> you get 100 if you bet the mets? what's that? >> i don't bet. ever. on anything. i'm a purist in that. with the goldfish and with bet. i don't bet, period. not even -- i just root for my team. i don't even do fantasy. let's move on from boeing to another "b" name, bayer. it's the german company that bought monsanto and has been paying the price ever since. >> are you putting that as the

worst acquisition since snapple? >> aol time warner, bayer, nen nextel-sprint. >> look at that. that was agreat german company. >> really go back. go back ten years, show me this company. why is it down today? because the washington supreme court, yesterday, accepted a review of litigation over the impact of pcbs, polychlorinated biphenals, exposure at the sky education center in washington state. previously, an appeals court had overturned what was an $185 million award in a trial. they found flaws in the case. that was back in may. and the fact that the washington supreme court has now accepted it, well, there's concern around it, and that is sending the stock down. yeah, this is yet another

part -- i mean, most of it was round-up related litigation. this is not. this is pcbs, but you know where it came from? monsanto, which voluntarily ended the manufacture of pcbs back in 1977. 125,000 charges have been brought against the product in the u.s. that is round-up as well that i'm talking about there. but pcbs, round-up, it never ends. new ceo, relatively new ceo, obviously, trying to reposition the company, but you're still dealing with this overhang of lit litigation. >> it's incredible. it really is michael clayton >> it really is. you can take a look there. i think you've got to go back -- that's the ten-year. that's right. it's lost 75% of its value. what a horrific acquisition. >> who did the legal work on that? >> i don't know. who, like, said the coast is clear, you can buy these guys? >> yeah, who said that? >> they should never work again. >> that was moe, larry, curly. that was pre-shemp.

>> duey, cheatham and howe. >> car talk. lot of fed speak. steve liesman has some breaking headlines. >> carl, yeah. federal reserve, dallas fed bank president lori logan, out with some hawkish remarks, saying out loud what the market's increasingly pricing that she supports a more gradual path back to normal policy to balance risk. she said that's more appropriate. policy rate, she said, is headed down rather than up, but the fomc should not rush to reduce the funds rate to normal or neutral. translation, that 50 was a one-off. at least she would like it to be. still restrictive policy. she said we should restrain demand. her speech in houston is full of inflation concerns. she said upside inflation has diminished but not vanished. he's concerned about inflation risk from unexpectedly strong

demand, easier financial conditions, and geopolitical developments. the news, she says, may be higher than before the pandemic. the labor market, she's pretty good on. it appears to be close to balanced. there is a risk that the labor market could cool more than what is needed but the fed could best balance those risks by reducing policy gradually. i have a chance to talk about this issue with austan goolsbee tomorrow at 10:00 a.m. on "squawk on the street," and guys, just check out the two-year. you can see popped a little bit on those logan remarks. she doesn't vote until 2026, but i think we're listening to the minutes today, we'll hear how many friends and colleagues michelle bowman, the dissenter, had when she wanted to do 25 last month. guys? >> good to keep in mind, steve, thank you for that. we'll wait for the minutes coming up at 2:00. by the way, oil now below $72. >> yes, that's incredible. and we had an exxon piece today, looks like, you know, this is the call to exxon, david, and i think these stocks are have been

problematic. slb doesn't move on these things. i mean, it's almost the futures trade but the stocks don't, and now, when you have this down, you have to wonder, i'm not a geopolitical guy, but what is the plan that israel might have? obviously, the u.s. government is apparently not as included as it was. >> apparently, "the journal" reporting that they're not -- the u.s. is not being included, per se, in exactly what the plans are. >> but remember when slb used to -- >> by the way, if and when they execute some sort of retaliation on iran for the latest missile attacks, isn't oil going to go back up? >> i think so, but i feel like the stocks is what i focus on and the stocks have been not great. not great to the point where diamondback energy, the biggest growth, has big gain and then has big loss and when it's done, it end up at the same place. so, i just find that it's impossible to make money in that group right now. >> yeah. bloomberg's got a piece looking at the war premium on crude is not what it used to be, for better or worse. >> we also know that the saudis

have pretty much guaranteed that there will be plenty of oil pumped. the u.s., you hardly ever hear exactly what, on a given day, is in the permian, but boy, could they send more. the permian is fecund. i like to call it. it's incredible. incredible. >> i've been to the permian. >> i'm well aware. >> i've been marfa. >> and you've been to the gulf. >> i've been to the permian, thankfully. >> you ever been to marfa? >> no, never been to marfa. >> dean. what an actor. movie giant. >> oh, right. >> i went to see where it was made. that diner there. >> speaking of movies, guys, netflix is going to be reporting earnings. >> love it. >> it's not -- it's basically flat this morning, looking at a couple of notes there. you know, i mean, deutsche bank, for its part, seems to like it a lot but they say 31 times, 2,025 eps. they don't see a lot of room for

upside, jim. i don't know if you agree with that. that's basically pure valuation, not about subscriber trends, which they frankly think are quite strong. >> people have to go over the last quarter conference call when they said something you rarely ever hear. we have so much opportunity in advertising, we just want to get it right. that's not in the stock. i think the stock can go higher. and by the way, "squid game" too. this is like someone downgraded amazon ahead of amazon prime day where they were giving away apple products, giving away with air quotes, but i think "squid game 2" is going to be almost as big if not bigger and you go back and watch squid games one and it's incredible. >> macron is on the tape trying to make sure "emily in paris" comes back for season five. >> a worldwide statesman focused exactly where he should be. str stronger things, the guy lives on my street. >> which guy? >> the big guy, the cop? >> david harbour? >> wow, wow.

and lily allen. you got a nice neighborhood. >> brooklyn's got it all happening, man. >> we -- >> i was in williamsburg recently. oh my god. what's going on there? >> it's just incredible. people see everybody jogging. all these actors jogging. it's incredible. gyllenhaal, i saw the sister. >> who? >> gyllenhaal. >> maggie. >> i said, pull over. she said, don't you understand? >> you screamed something at her? >> no, she was walking on the street, and i told my wife, pull over, it's gyllenhaal, and she said, no, you don't do that. they moved to brooklyn so that you don't. >> everybody's very low key. >> celebrity encounters with jim cramer. i like it. >> i'm there. >> as we go to break, watch bonds. liesman brought us the logan comments, but six other fed speakers today, and the fed minutes, and a ten-year note auction at 1:00. stay with us.

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it's time for jim and stop trading. >> in my top ten things to watch on wednesday for cnbc investing club, which you can get. we talk about how home depot is the way to invest. i don't want to try to prop it. i don't want to be like east of eden here but when you look at what luke says it's not lowe's it's home depot, the acquisition is good for builders. so those who think this is going to be a longer term issue, home depot is the way to invest in what i regard as climate warming and the idea that storms are here to stay. >> they do say be patient as we

get through the post storm recovery. >> it's a great opportunity, i had generac on last night and people are buying that. it's also a rate story. rates have to go down because it costs so much money to install that. people don't realize generac is expensive. >> disney is closing, the orlando airport closed as of 8:00 a.m. in the past. something i didn't mention today. keeping an eye on activism, we talked about it. i think this week whether it's air products, pfizer, cvs, i know air products meeting with mantle ridge today. i think pfizer has a plan to meet -- excuse me, albert has a plan to meet with jeff smith. >> do you think he'll be coming in. >> yes, absolutely. i think air products is flying all their directors in for that mantle ridge meeting.

so this continues, and it will. we're in that season. this is large cap activism. we'll continue to keep an eye on it. >> nvidia is down, that taiwan semi is reversed, good numbers last night. you may want to reconsider the jensen, boeing, health because it's fluid. >> it is fluid. nvidia's market value is still above that of microsoft. >> it's a long day. >> you're hanging around, though. >> yes, i am. >> it's a long day for you because jim is not going anywhere. he's sticking around as we get an exclusive with the ceo of honeywell. dow up 140, s&p about a dozen points from an all-time high. don't go away. t's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering "seven things every medicare supplement should have". it's your free, just for calling the number on your screen. and when you call,

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good wednesday morning welcome to another hour of "squawk on the street" i'm sara

eisen with carl quintanilla and david faber, jim cramer also sticking around for the top of the show. he has an exclusive interview with the ceo of honeywell in a few moments. first up, stocks started the week, coming back. s&p 500 is up just a tad. if you look at the sector breakdown right now it's financials having a strong day up .5%. along with industrials, staples, materials. but with tech lagging you're seeing the overall index unchanged and the nasdaq is down .2%. after a strong day yesterday. you have some strength in the tech land like palo alto. take a look at treasuries as well. the trend is firmer yield post good jobs report and we are back above 4% on the ten year yield. just below 4% on the two-year yield, holding below that level. here are three movers we're watching. shares of norwegian cruise line rallying on pace for the best

day since late february. that stock upgraded to bye at citi and price target raised to $30 a share from $20. boeing said it has withdrawn its contracts offer after talks with the largest union broke down. and also s&p placing boeing's ratings on negative ratings saying the strike will cost boeing a million dollars a month. and alphabet, the justice department submitting a court filing giving a federal court a range of options including setting restrictions or operating a breakup to end what it calls an unlawful monopoly in search. wholesale trade out a couple of moments ago for that we go to rick santelli. >> good morning. the inventory side, this is the final read so up .1%. now replaces up .2%. remember these are third quarter

numbers which means that we may be taken a bit off the gdp when we get our final look and if you look at the trade sales side. down .1%. this is a half a percent below what we were expecting. we were looking for a number up .4. this follows an up 1.1% and we see sales weakening a bit, turning back negative, negative in june, positive with a big number 1.1% last month. in some ways even though it wasn't expected on the sales side it is a take back to a strong sales month in july. we see that yields are up, as a matter of fact, 10 year note yields top yesterday's yields, basically 4.05%, that would be the sixth consecutive session that ten year yields have traded higher than the previous days high. they continue to build momentum pushing rates higher.

an unusual dynamic after the fed's half point rate cut and we'll get the meetings to that meeting at 2:00 eastern. back to you. >> it'll be interesting to see how close a call it was, whether to cut 25 or 50 at the last meeting although a little stale after the jobs report. rick, thank you. rick santelli. quick charts i think are worth watching is first china, the hangover continues after the big party. and one stat that i pulled out, cnbc.com did a good write up of the spending numbers over the chinese holiday period and it turns out they were down 2% than prepandemic level according to goldman sachs analysis. subdued services prices, lower tourism. which highlights the weak demand story and why the stimulus needs are high and there's questions how much appetite there is to do

fiscal stimulus right now. >> matt is over there right now from j.p. morgan indicating the opening, casino is doing better, too. i think it's on the fence how well the consumer is doing. >> we don't know how much they're going to stimulate. the consumer has been weak. pepsi yesterday -- >> it's been unimaginably week. >> yes. >> the selloff continues. we didn't discuss it in the nine so i'm glad we are here, sara. to your point there's a great deal of enthusiasm but not a lot of detail that's often the case and it's hard to understand what is going on in china particularly given the way the government messages things. but we're kind of waiting as the market clearly is waiting as well for the concrete actions, i guess. >> on the fiscal side. >> on the monetary side it was fairly specific and it was kind of a loaded gun as far as liquidity measures they're

trying to stimulate that way but the market is telling it it's not enough. 's not enough. >> correct. that's where the problem is, weak domestic spending and sentiment. so that's a to be continued if the rally continues. >> you think gun not babazooka. >> i stopped short of bazooka on purpose. speaking of a babazooka, the otr chart is the u.s. fiscal deficit. we did get new numbers from the congressional budget office and the projected deficit now for this year 1.87 trillion. which is an increase from last year. why do i highlight it? it's 13% higher than last year, if you take into account the timing shifts and is it outlays. highlight it because you hear a little bit about it in the election. but according to recent scores for the committee for responsible budget, both candidates have plans to add

trillions of dollars to the deficit. and the deficit is not unheard of but it is unheard of in a time we have low unemployment, strong growth and no wars. >> i thought i did see projections that trump's plan would be roughly double that. >> 7.5 trillion. >> and as much as 15 on trump side. >> the question is how much to bring in. >> the harris plan will also contribute to the deficit. >> 3.5 trillion was also the number. there's a lot of unknowns exactly on some of these. how much is he going to raise in task force, how much will she raise in taxing the wealthy. there's some questions. >> excellent. thank you. always want to be here for your top three, always stop and listen. >> thank you. >> honeywell announcing it will spin off the advance material unit to drive growth yesterday but there's so much news here, the chairman and ceo joins us now. in 1999 allied and honeywell

merged this was chemicals merging with very good software and hardware. i don't think people realize how revolutionary the move you made yesterday to be able to reform this company in your way, automation, future of aviation, energy transition tell us why you're making what i regard as a radical move to reinvent honeywell. >> first, thank you for having me here. when i started last year in june, i talked about pivoting honeywell to three megatrends. these are truly long-term growth vectors, aviation, energy transition and automation. but to get there i had to do portfolio adjustment. and what we did yesterday announcement of the spin of the chemicals business is a part towards that. the good news, jim, it's a great business. it has some franchisee which is

best in class. but as a stand alone company it's going to do well with the capability to have regulated product lines like refridge rants, and health care, clean energy, in semiconductor materials. but also honeywell positioned itself with a better free cash flow and similar margin rates. so to me it's a win win. that excites me. >> very much so. i think the analysts seem to not understand the chemical business if it's 11 billion in valuation it would stay in the s&p which is fantastic to people that we pointed out. you have moved radically to be in the energy transition. i think you seem to understand that we're not going to jump right now to nuclear. i think you offered a businesses that currently have earnings as opposed to future earnings so

please talk to us about the leaning solutions you're doing to energy transitions which is very different from what everyone else is doing. >> in our energy transition business we'll be about $3.5 billion next year and what we're focused on is what i call green molecules. the world needs energy today and we had a presence with our technology. that's not going away soon. that's here to stay for several decades. at the same time, we provide capability to move to new molecules. think about sustainable fuel, hydrogen because our customers are moving their business mix to these new technologies. and we have added now liquid fied natural gas in our portfolio. so think about the fast growing segment of renewable energy molecules. and we believe this business is

going to do well given the small energy but lower admissions and is that's a problem we are solving for our customers. >> to me perhaps the most exciting division is the future of aviation. right now we have boeing which i regard being not investable. we have ge arrow space. and you have a tremendous defense business and space business. this is what we want. is there any way we see energy, aviation, and automation as three companies because each is sought after currently by the market. >> right. and they're highly si energetic jim each of them. you mentioned about aviation business, it has to move to sustainable aviation fuel that's a key need for the next decade. we are one of the biggest technology providers of aviation fuel in our business. and that's a proposition of

honeywell we have these assets which work with each other to create higher value for our customers and therefore higher value for our shareholders. >> it's david faber itted to focus for a minute on the plan spin and why you're going that route and why you're confident it will trade fairly well as you called a pure play. what gives you the confidence this is the right way to go. i assume you looked at the potential for selling the unit outright? >> yeah. i'll answer both parts of your question. so i would say that spin provides a certainty of the time line but also a tax free spin for our shareholders, so we looked at all the options and we found that this is most deterministic way we could execute it. the stock is going to -- the specialty materials stock created is going to do well because of the intellectual property it has. it operates in regulated

industry. its margins are up 45%. it has strong growth momentum as the world income grows more refridge rants are required. there's good position in clean energy, semiconductor materials. then we look at the entirety of the business it's a unique asset with high margins and a good momentum on the growth rate which gives me confidence that markets are going to value it better than a traditional chemical stock. >>ing have you completed or are you confidence in terms of the capital structure, anything else going with it in terms of debt and the considerations that play into this consideration as well? >> yeah. we are working on it as you can imagine. this is about, you know, we have said that will complete the spin by end of '25, early '26 so right now looking at the normal section of the spin process, arc design, the capital planning for this reorganization, potential

dividend which may come back to honeywell so those are all work in motion and we expect to share the details in the next few months. >> yesterday a couple of analysts weighed in on obviously the announced spin and pointed out your stock has traded at a discount to industrial peers it still performed well but at a lower rate than the gains that some others have seen. why do you believe that's the case and why do you think doing the moves you're making here are going to address that discount? >> so i would say that for the last one year i have been positioning honeywell to make it a more growth oriented company and that to me first requires us to address our portfolio. i believe we cannot deliver a strong growth momentum if our portfolio is not right. that's why we made accusations aggregating to about $2 billion this year. and at the same time we are spinning off this business. having done the portfolio work which is not ending, i'm not

saying we're done, expect more portfolio work to occur in '25 and beyond. we're looking at strong growth within our business focussing on the end markets which are growing, looking at new products, after market services. so i do believe and have a strong conviction that honeywell is going to perform at an elevated rate of growth in times ahead. as we are executing this strategy, our growth commitment is 4 to 7% and as i've said several times before, my goal is to deliver upper end of this on a consistent basis. >> on a related note i took note of an yoursunited states items d qualcomm to generate examples. are there uses of a.i. that you think would be educational for the street? >> a.i. in context of industrials is different from a.i. in context of the broader

use we all do in our life it's one thing to use a.i. for us to be effective. i can research a restaurant, write my resume or think about the health care applications. but industrials our app applicas are mission critical. we have to use a.i. in a manner that's deterministic which means it solves a problem. and the area we see those opportunities is more on the labor side. less skilled people available to our customers, they are worried about scaling the skill profile and creating a lot of co-pilots for our customers using a.i. so people can be more productive and efficient. it's ironic that in context of industrials i believe that a.i., the new generator because it solves a skill problem, biggest risk many of our customers are carrying. it does provide a cost productivity opportunity but that to me we always had cost

productivity opportunity. and the opportunity provides to run our operations better, to skill people better to manage the asset better is higher and i'm really excited about that. >> finally, what are you seeing in in terms of your end markets? i think of you as classic industrial, cyclical story. what do you see in emerging markets? exposed to a lot of these high growth markets and globally as far as demand. >> i would say the last few months have been rocky due to war in particular has disturbed some momentum we all know the china story but on balance what we are doing in honeywell is focussing on the end markets which are growing. think about defense and aerospace, think about energy transition more broadly in the energy sector so our job is to find the growth sectors in the

troubling economy because i think on average the things are not looking as interesting as it was at the start of the year. but at the same time we are excited about pockets of opportunity which exist for us. >> okay. appreciate the time today. >> thank you very much. ceo of honeywell. as we head to break, here's our road map for the rest of the hour. tracking the monster category 5 storm bearing down on florida, hurricane milton set to make landfall tonight. live with the latest. and the doj is considering a breakup of google on antitrust grounds. what does that mean for alphabet's stock price. and the selloff in china, worst day in nearly 30 years as "squawk on the street" continues after this. when it comes to investing, we live in uncertain times.

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we along with everyone else continue to track hurricane milton expected to make landfall in florida later tonight. marisa parra joins us live in tampa. what is the latest there? >> reporter: we've been in tampa on the ground for the last couple of days we were here ahead of helene, during helene. i can tell you the difference on the response we saw before helene and these hours ahead of milton. i will start by saying look at the shot i have right now this is where we'll hunker down for milton. and memorize this, it's going to

look different in 12 hours from now. there have been mandatory evacuations in places we didn't see ahead of helene and in florida in this region it's organized by zones, zone a the most vulnerable, we've seen zone b, evacuation. we've seen people who are hunkering down inside their homes but they're typically inland away from the risk. those closest to the coast we saw catastrophic damage after helene. and the thing that was so eye opening for so many people here is helene didn't even make landfall that was 100 miles off the shores, off the coast. so there's a lot of people who watched what happened there saw the damage and destruction in their own front lawn, homes and decided not to chance it this time. i've spoken to a lot of first responders, to st. petersburg fire and rescue. they have done hundreds of evacuation orders that means

everything from knocking on doors, handing out flyers, making sure everyone has the information they need. they said this time they have received the least amount of b pushback they've seen from people. s we've seen the images of the traffic jams on the highway. and there are resources pouring in around the state to address concerns. i will state this, as i get ready to get back to you in the studio. if you want to evacuate it's not too late but do it soon because bridges will soon start closing as the weather starts to roll in, sara. >> be careful, thank you very much for the warning and the update from tampa today. early estimates indicate that hurricane milton could cause as much as $175 billion in damage. let's discuss the potential impact of the storm on insurance stocks lower this morning.

our next guest said milton may change the insurance market. what do you mean? what are you expecting, paul? >> you know, you really don't know. but usually pricing is the first thing they increase but also what happens, let's get covered, terms and conditions change as well as the structure. insurance spreads the risk around the world could very well change with an event that potentially we've never seen before. so we could have a very large structural change in the insurance industry that frankly will be on a global basis if it's big enough. because that's what the industry does, it absorbs losses and does it on a global basis. >> you're saying the sheer magnitude of the storm because the region is no stranger to hurricanes lately. >> there are these sort of hypothetical losses, tampa, a cat 5 is one of them where we don't have any idea how big the damage could be.

and that would test how high people -- how much insurance companies buy, how much insurance people buy. all of those things could have to be readjusted if we think just the sheer size of the risk is larger than we originally conceived. >> we're looking at the names of insurance companies that operate in florida. i'm wondering who, in your coverage area is most exposed. >> i cover a couple of the florida specialists. they are the most vulnerable. they buy a lot of reinsurance to cover it but they're theoretically the most vulnerable. and the bigger companies will obviously take large losses too but in florida their market share is small but it will be a big event. it'll get spread over companies you didn't expect through reinsurance, and exposures. >> paul, is it a surprise to you over these last many years at

this point with climate change and what do seem to be much more powerful storms as a result that the insured stocks have performed as well as they have? >> you know, this is at the end of the day, a cost plus business. and more risk means the business has to grow with that. and so, over the long term, more risk actually increases the size of the industry. i think that's why the industry has done relatively well over time. because at the end of the day, there's more demand for what they provide and more need for what they provide. >> finally, paul. everyone has been talking about how political fema funding has become. it's difficult to get congress to come back and pass more appropriations. ft has an opinion piece that the fed should start a federal fund

bond facility. as they point out in the headline, why help only when bankers are in trouble. i wonder if you think that's the direction we're headed? >> i don't know if that's exactly what will happen but there's a lot of history here with states and the federal government not wanting the insurance industry to go away. you can look back at what the state of florida does in recent years in the past. governments will step in to make sure the insurers are there in the long term because it's the greece that kind of makes the economy work. so i don't know if that will be the same thing but think about the world trade center disaster. usually there's some response that keeps it going. on that note the expectation is

they'll price themselves out of the market or choose to exit is that your expectation as well? >> i think if the event is truly unique and larger than we contemplate you'll see other mechanisms whether it be, you know, tort reform, changes in terms and conditions or things of that nature that aren't necessarily going to raise prices and a lot of price increases in florida it's clearly become an issue for the average person. my guess is the insurers and regulators will work hard to make it not just about raising rates after the hurricane. >> thank you for talking through some of this with us paul and the impact on the industry. paul newsom of piper sandler. >> when we come back we'll talk chinesstkse oc falling this week. as our own markets are just about six points away from an all-time high. stay with us.

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welcome back. president biden will speak with israeli prime minister benjamin netanyahu today according to nbc news. it will be the first call between the two since august 21st, weeks before iran launched ballistic missiles against israel and it comes ahead of a israeli cabinet vote on the response to that attack. in lebanon, the united nations said at least one quarter of the country is under warnings netanyahu gave a stark warning saying lebanon would face destruction and suffering like gaza unless its people rise up against the iran-backed group hezbollah. a trio of scientists were awarded the noble prize today for using artificial intelligence to predict and design the structure of proteins. their work on the building blocks of life can be used in pharmaceuticals, vaccines, tiny sensors and more.

nobel officials say they solved the holy grail in chemistry. back to you, david. >> thank you. another rough day of trading in china today the csi 300, you can see the key indexes and composites there. bob pisani is here tracking that action. what do we make of it all? >> it is confusing and difficult for the investor. especially given decades of no promise at all from china. after a huge rally stocks are selling off in china over concerns that the stimulus measures so far announced by china may not be enough for a strong economic recovery. all the stock indices are down, roughly 6% including the shanghai, which is the older stock exchange and the

schennzhen exchange. notice hong kong is only down about 1.4%, that's interesting. first, china's equity market was closed for a couple of days but more importantly announcements from the national development and reform commission was a disappointment because it did not announce any new measures. they will make a statement on saturday but it's not clear what they will say if anything. so the csi 300, this is sort of the s&p, has rallied more than 30% since september 23 on the stimulus hopes exactly. so far they've disappointed etfs that track china have been on a real roller coaster. so mchi is a broad measure of mainland stocks, hong kong and u.s. based china stocks. it rallied almost 40% in the last few weeks but down 15% since monday. that's a real roller coaster. the china economy has grown in fits and starts since the mid

2000s. but investors in china have been disappointed for decades. this week marks 20 years since the launch of the original china etf, sfxi. this is trading where it was roughly in 2007, no returns after 17 years. why no returns? we know the china consumer is overinvested in real estate, under invested in stock and bond markets and they have huge personal savings as a hedge. the biggest issue is china is not perceived to be a friendly place to invest. many global investors are carving china out of global portfolios. look at the rise of global x china emerging markets etfs. this has had huge inflows throughout years, emxc. so i'm sure you have thoughts if

china was like japan was in the 1990s, uninvestable for 20 years. i know david has come on aggressively and said buy china now. but it's not clear whether these stimulus measures are going to work particularly without reform of the economy itself. the national development and reform commission the agency in charge of reforming the economy were selling off because they said nothing. investors were seeing they said nothing at all. so without broad reforms i don't know how global investors are going to start necessarily rushing in. other than people who are technical traders here. >> one of the differences with japan and why people hold out hope because they have the capability and fire power to do something if they want to do it. they have a lot of reserves. that's not a problem. the fiscal issues aren't so much the problem. the problem is resolve and political determination to do something to stimulate the

consumer which is contrary to your point of their entire model. >> can they do anything to make it a friendlier place to invest? look at them carvingchina out. >> the second largest economy of the world hard to do, carve them out of an index. >> you would think so but that's happening right now. after 17 years of going nowhere and it's not a free market system at all, would you put a lot of money in that? i hope they can turn it around but good questions to ask here from global investors. >> we know what miller will say. >> i'll invest when he's gone. >> when she's gone and brought up the unpredictability of what. >> when you say she, you mean xi jinping. >> yes. >> bob pisani, coming up after the fwbreak, is it time to brea up google? we will talk about that with the

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the justice department indicating it's considering a possible breakup of google as an antitrust remedy they said they're considering behavioral and structural remedies that would prevent google from using products to advantage google search. google responded in a blog post saying this could negatively impact consumers, developers, and this is radical and sweeping. a federal judge expected to make the ruling by next summer. let's bring in gilroy, who has a neutral. good to see you gill. on the filing now where are we in the realm of likelihood regarding these kinds of remedies? >> so the doj went out there and

reversed engineered why google is google and told google it has t to stop these things. it really is coming after the core of google's business, the collection of data, search, distribution of search and then the ad network and looking forward to a.i. it has taken this very broad approach to the -- to google and google has come back and said, no, let's go back to the narrow discussion about search distribution. what this means is, google has two choices right now. in the last hour, carl, you talked about the equivalent of microsoft and, in fact, microsoft is mentioned in the doj remedy filing. microsoft meandered for 15 years trying to fight this and evade regulation and it was stagnant for a long time and missed mobile, was late to cloud because they tried to fight

regulation. satya satya nadella moved the company forward. the last thing google wants to do is drag this out. they need to be aggressive and negotiate with the department of justice whatever remedy it's going to take to make the department of justice go away. something like a spinoff of one of the businesses. >> so you don't see this dragging out in the courts for years? >> it might but that would be very bad for google. microsoft was in the desert for 15 years because it tried to hold onto its business in spite of the demands of regulation. if google is to do that they may be in the same situation they are now. that's why they're trading at a discount to the market. they have an opportunity to negotiate with the doj, come up with significant measures that would make the doj go away. and again, that is likely some sort of spinoff of chrome,

android or the ad network businesses in order to appease the doj. >> i like the title of your last note what can be unburdened by what has been. in that note it was interesting that you say this is either a xerox or complete leader in the technology to compute. which is it and how much has to do with a case like this in the regulatory risk? >> it's up to google. they have very valuable businesses. search is still valuable. they have the cloud valuable business. youtube valuable business they have waymo coming up, if they were to go aggressively make this go away be aggressive on a.i., not on the defense like they have been, they could release a tremendous amount of value. the concern that sharedholders have is they've not been aggressive they're still doing it the way it used to be

compared to how things can be for google if it goes on offense. >> to come back to the idea of a breakup. there's been a long-held belief that the net asset value if you were to pursue a breakup you might get a higher stock price but judging what i'm hearing from you, talking to jim cramer earlier, if the doj gets everything it wants and moves forward that would not enhance the stock price in any way, is that a fair statement? >> it would break up google's monopoly and prevent it from participating in the next search of the wave of a.i. if they fight the doj and the doj goes to the remedies that are far reaching google will be hobbled and they'll be an ice cube. >> shorter term real quickly, gil, something i focused on

months ago. we had a brief period investors were concerned and then not concerned. should they be? >> more so now. the doj is explicit about the reason they're intervening now they want to make sure google's monopoly doesn't persist into a world with the searches combined with a.i. so they're breaking up the google monopoly now so they have competition for the new generation of search. google should be worried about it, that's why they need to address it so they're not impaired and hobbled going forward as the market changes and we start using search enhanced by a.i. as opposed to just the link. >> we'll see what we get in this expanded proposal in the coming weeks. appreciate the time as always. >> thank you. we'll take a quick break, though, i want to show you what's happening with the markets. we're gaining some steam. s&p up .2%.

what changed? technology moved higher, n name like apple, microsoft part of that story. financials and industrials also having a pretty strong day. we'll be right back.

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historically october is a choppy mthon for stocks. one trader is plotting a technical road map through the month. she'll share it tune in to our market navigator segment today on "power lunch" at 2:00 p.m. eastern.

you may not know it but we're just a few weeks away from

a presidential election both candidates making a final push in some of the key swing states. megan is live in nevada looking at the biggest issue for an important county in that state. megan? >> reporter: david that's right. there's a chance it comes down to right here in clark county. swing the election, the biggest issue is housing, projects like the one behind me are popping up all over las vegas but nevada ranks the last in the nation when it comes to affordable housing. for latinos it is a top of mind issue, but 80% described owning a home as an essential part of the american dream but it is increasingly out of reach, one affordable housing developer in las vegas said while they are building is much as they can, the problem just keeps getting worse.>> for us, it is, you know, the word desperate, if i have 1000 people, just put that in perspective, 1000 people waiting outside and i only have

60 units and the buses are not stopping coming from our neighboring cities.>> reporter: she had also said about 70% of her clientele is latino and while the biden administration has sent about $1 billion in funding from the american rescue plan, builders say it has helped with momentum but it is not really making a dent, it has helped fund this project and kamala harris has devoted a huge chunk of her own economic agenda to talk about housing but organizers on the ground say even the best policy ideas only go so far when folks are more worried day-to-day about paying their own bills. >> of course if you are constantly working it is also difficult to make the time to listen to the issues and go vote which is why you look at your grocery bill, you look at your gas bill and that is how you end up voting.>> reporter: all of this is weighing on the poles, in that same poll, harris was bleeding but by

smaller margins, and on the issue of housing in particular, harris is trailing trump by nine points.>> there's all sorts of questions about how to remedy that, to build more affordable housing, do you loosen regulations? they are both talking about it, thank you very much. coming up, the founder of shake shack and union square hospitality group along with the ceo, rob lynch will join us, stocks are up over 90% over the last full year of trading, that is coming up in the next hour, we will be right back, stay with us. are they really as good as weathertech? you know, laser measured? [suspenseful music] no. nothing comes even close to laser measured weathertech floorliners. they offer the ultimate protection. front, back and even up the sides. for a full line of premium american made products

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the new teen survey, reaching out to teenagers across 47 states about their spending habits, in re cal, nike maintained its number one ranking among footwear and apparel that, it is losing mind share especially among female shoppers, lululemon is also slipping, apple, we also noted

there is no 2024 supercycle for the iphone, 22% of teenagers plan to upgrade this fall or winter and that was slightly below the levels from fall 2023 and 2022 surveys so it is always an interesting snapshot for investors of the zeitgeist among this critical cohort of shoppers. overall, self-reported spending was up 6% year-over-year so that was good, at 4% versus the spring.>> were you surprised at the consistency of nike at number one?>> no, that is a reminder that nike is so large and so dominant, and even if they are losing, they did lose four points to some of the other brands, like on, that was a positive in this report. but nike has such a strong hold on shares on consumers. even though they are going through a weak spot.>> yes, a weak spot that might continue for some time, but i'm sure you

will be the first to hear it. >> hopefully, yes. i thought you were going to bring up the goldfish.>> no, we talked about that earlier. i have very teenage taste in food, not like yours, not your sophisticated taste. we are up in the s&p, by the way, u207%p .8, we have a lot more market coverage for you straight ahead. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. our advanced matching helps find talented candidates, so you can connect with them fast. visit indeed.com/hire

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>> good wednesday morning again, welcome to money movers, today tom michaud is here, and nine public debuts just this week, the ceo of kindercare is talking to us ahead of their first trade.