little bit worse for wear, down about 92 now on the dow, but very strong session that just continued almost to melt up as we approach 4:00 yesterday. i guess we won't look at the ten-year. we're still above 4% on that. i think we are. >> it was. it was just above it. 4.0%. >> join us tomorrow. earnings season. woo-hoo! "squawk on the street" is next. ♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. coming off the 44th s&p all-time high of the year, futures are lower as core cpi does come in a tenth hot, although annual headline slows for the sixth consecutive month. the lowest since 2021. our road map begins with markets making history. the s&p 500 and dow at record closing highs going into today's

session. on the earnings front, we are watching shares of delta. the airline's revenue guidance and quarterly results did come in below consensus. also ahead, we're going to bring you the latest on hurricane milton after it slammed into florida, causing catastrophic damage and leaving millions without power. let's begin with this morning's cpi print. jim, 2.4 year on year is the lowest as we said since 2021. down six straight months. >> i think the new thing to talk about is it's lower but not fast enough lower or lower but not as low as we'd like. interest rates bobbing and weaving all morning. actually, kind of a -- almost like a small cap stock, a red chip, so to speak, and i think that, david, this is one of those where they have been pressing the market down for days because long rates have kind of gone up and people thought this was going to be the culprit but anyway, the market's fallen still because the bias for whatever reason seems to

always favor the bears. and i don't understand it, because we are in a very big, powerful bull market for more than two years. >> but we have had a nice little rally in things like nvidia, haven't we? >> yes. i mean, as a matter of fact, i'm glad you mentioned nvidia, because today, they're ringing the opening bell over at the other place. >> i didn't want to let it go two minutes without mentioning it. you unloaded your nvidia -- your nvidia bag as well, filled with your endless amounts of just -- i mean, look at this. >> stock was down 99 cents at 4:00. and it rallied to being plus as people saw that goldman recommended the stock. thank you. and now it's down $1.27 but this is to jim and it's signed by jensen, because this is a very big day. 25 years since the g force. this is the legacy. this all got started. >> 25 years ago, that's when it

got started, essentially? >> not the company but the key -- >> the key -- what would you call it? >> technology. >> you mentioned goldman. nvidia is on their list of top picks going into earnings, along with citi, gap, what else? dell, broadcom, adt. >> there was a very strange list, and you know, we're seeing these things, these tactical lists, and you know -- sorry -- what is that about? i guess that was screaming about yesterday's game. and i think that when you look at the list, i come back and i say, well, this is an oddball list. azec, which is decking, good company, jesse singh runs that and monday.com. i don't know. dell, obviously, you're no stranger to michael dell. broadcom, all-time high yesterday. so, it's eclectic. ek eclectic list. >> it is. i'm sorry. i know we're -- i know we're a podcast, i'm supposed to talk and not just sit here looking at

you blankly. >> it's okay. >> i got a couple of things i've been working on this morning. >> grand slam? you have a grand slam? >> it was a good day. it was a good night. and it will be good days ahead. it will be good days ahead. there's our best player. francisco lindor. all your mets fans out there. sorry for those of you who aren't but we're having a bit of a magical run here. and it comes up with key, clutch hits like that one. of course, we left a lot of men on base in the early innings, and sadly for you, your phillies are done. >> we'll be back. >> never like to -- you know, listen, i don't like to see that. ide i've been in that position so many times. >> i appreciate that, thank you. >> it's not fun. >> okay. that's my podcast moment. >> there's stevie cohen. >> he doesn't like to be called stevie. >> i don't know why i do that. >> i don't know. >> the guy let me throw out a first pitch and i screwed it up. >> we're still looking for that ball.

>> it was one bounce. that's all. just one. >> one bounce. >> it was off the mound. >> who had a strike and then almost knocked over the phanatic? >> you threw the pitch from ten feet. >> it was 55 feet. >> you went, ding. >> i resent that. go ahead. those people are wearing the vision pro. >> we're going on to either l.a. or san diego. we don't know yet, of course. tied 2-2. both of those are powerhouse teams but i got a good feeling here. special. >> thank you for that. >> special run. >> same feeling about the astronauts yesterday. he was in touch with the astronauts at the space center. you've got a wire to everybody. >> i've got, like, they reach far, my tentacles. they do. >> dr. bourla? >> they may reach there. we may have more on a number of these activist situations, whether it be pfizer, air products, we got a cvs upgrade today. did you see that? >> i'm a believer in karen lynch. >> it is, carl, as we said at the end of yesterday's 9:00

hour, very active time for the activists, more going on. in fact, the pfizer situation is an interesting one with now frank and ian reed sort of saying, no, we're not involved any longer. we'll get more on that later. >> the other macro print, of course, this morning, jim, was claims. at 258. that's going to be the biggest weekly jump since 2021. >> i know. that was significant. we've got the back and forth at 8:30 that exists on the other show and it's good, bad, good, bad, sister, mother, sister, mother, but i come back and say, we have enough here to make it so that you could argue either side, because david, shelter down, food up, apparel, obviously, don't go to tjx. if they went to tjx, apparel would be down and you can't even get to costco, because everything's empty. >> what do you mean? >> there was a costco recommendation that showed you the shelves in florida with nothing on them. >> oh, well, yeah, that's sort of a special situation, obviously. >> you're right. >> september comps, x-gas up

eight, nine. >> it's where you go if you think there's going to be a strike, longshoremen strike. it's where you go if you think there's going to be a hurricane. you go to costco, and don't forget with the membership increase, it didn't hurt their numbers at all. it remains my favorite place to be able to get camus wine. 77 bucks. >> it's a good price, right? >> same price they pay. >> wow. >> jim mentions the hurricane, of course. serious situation as milton makes landfall last night as a cat 3 near siesta key, florida. that's a barrier island next to sarasota. more than three million customers without electricity. stephanie gosk is outside st. petersburg near tropicana field. >> i don't have to tell you what the news is. you can see it over my shoulder. the roof blew off. it was made of fiberglass and it

basically just couldn't withstand the wind. the highest gust here in st. petersburg was 101. it hit around 10:30 last night and that roof, according to information from the rays, could withstand 115. now, just a few days ago, governor ron desantis had said that this stadium was going to be used as a staging area for upwards of 10,000 relief workers and various crews that were going to pick up debris, but in a press conference that he just gave, he said they realized that the storm was going to be bigger, the winds were going to be stronger and this facility wasn't actually going to be able to withstand it, and the roof was going to be the problem, so they moved people out of here. there were some people, essential people for the stadium, who were in the building last night, and the fire department here in st. petersburg told us that all accounted for, they're safe, but they did have to hide in quarters and you can imagine it would be quite a sight. i spoke to a guy who lives right across the street. he watched it all take place, and he said the sound was wild

and pretty terrifying, carl. >> stephanie, appreciate that very much. it was some amazing pictures. of course, one of those storms, stephanie, that brought us the wind and the storm surge and the tornados and the flooding. that's stephanie gosk from nbc. generac down almost 3% premarket. >> i had generac on earlier this week and i know that you never want to hope for the worst in these situations but they did well when the previous hurricane struck areas that were not usually hurricane zones, but this was not the gigantic power outages that people thought. david, i've always sensed this. when you say, it was really terrible, but it wasn't as bad as we thought because generac is not up, it does make you sound pretty much like cal in "east of eden." good book, holds up. but i point out that generac has been on a run going into this and if generac remains what you need, because the grid is so bad. not necessarily because of the storm but the grid is pathetic.

>> well, it's very difficult when you have wires like that in all sorts of different places with these high winds, with these frequent storms, to maintain consistent power. i mean, we're not burying all that stuff. >> pg&e has been doing a lot of good stuff, patty poppe, but look, every time -- we're doing a piece tonight on dominion energy. carl, every time you talk about power, it's google. it's amazon. it's just a couple of companies that need more power. >> microsoft. >> yes, but they need so much power. i was with jensen huang yesterday. i mean, he's trying to make it so that blackwell burns less but these places are just -- what larry ellison is doing is nothing short of needing all three three mile island to open. >> we come back to a time again and it's going to be so interesting to watch this over time. of course, as well as -- now, that said, they are not -- their

power supply is so close to their datacenters that, you know, and they are basically dedicated for or will be the power fully, so that's not really necessarily going to be hurt in a natural disaster of some kind. but you're right. the power needs, even with the increased efficiency of blackwell, and, by the way, the increased efficiency of the next chatgpt, the usage expands even more. >> yes. >> and so, you ultimately have even more need for compute, hence even more power needs. >> i'm glad you mentioned that. >> this is where it's all -- this is -- i mean, the infrastructure, bankers, lawyers, the financiers, they are flat-out working on these kinds of deals 24/7 in terms of, can they get the power? can they allocate the proper capital for it? and trying to plan, obviously, into the future. >> multi-year story, carl. multi-year. we had honeywell on yesterday. downgraded by jpmorgan.

it's finally happening. he wants to leave. 15 years? >> yeah. although, i think they did increase the target. >> we're seeing so much increased target. what is that about? >> when we come back, we'll get to delta as well, moving off the initial lows but definitely pressuring the airline space today as we get closer and closer to the banks tomorrow. we'll get to boeing, tesla, domino's, apple, and as david said, a bunch of calls today on psin mutywl, upgrade, honeel pei aine. rowe price, we help advisors move forward by building agile etfs designed to outperform the index. that's the power of curiosity. better questions can lead to better solutions. t. rowe price. invest with confidence. (luke) homes-dot-com is a new, t. rowe price. elevated home-shopping experience. beautiful design, tremendously rich content, and, my favorite touch, it's the only site that always connects you to the listing agent. feels like a work of art! (marci) lovely. what about the app? (luke) uh-oh! look what i did.

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top of the show, we mentioned activism. thing are heating up on a number of fronts. here's pfizer. its former ceo, ian reed, and the company's former cfo, frank demille yo say they have decided not to get involved in efforts by activist investor starboard value to seek changes at that company. in a statement issued on their behalf by guggenheim securities,

he said, "we're fully supportive of albert bourla, senior management and the board, and we are confident that over time, they will deliver shareholder value." now, an immediate follow-up to that, starboard has released a letter in which it says, and again, i have not heard from pfizer, but it says, "they understand specifically that people within pfizer and/or their representatives have contacted mr. read and m mr. d'amelio and purportedly threatened to commence costly litigation against them, claw back prior compensation, cancel unvested performance stock units, unless they publicly release a statement supporting the current chief executive, dr. albert bourla." starboard goes on to say, jeff smith, "while we cannot be certain the board did not authorize this behavior, we sincerely hope that all or at least some members of the board were wholly unaware of this coercive conduct, which in our

view constitutes a clear breach of fiduciary duty." . it was interesting, the presence of d'amelio and read to begin with, and i know it enraged certain directions at pfizer, not to mention mr. bourla, the presence, in any way, their association with an activist investor, even if it was by a casual association, described here in the letter as having been approached and sharing their desire to see pfizer pursue a better path forward. >> this is astounding. first, it was astounding that read and d'amelio were going to go away. he was there november 2021. praised dr. bourla to me. said he was great. >> cfo of this company for all these years. >> i know, i mean, 15 years, and then you get what is -- i mean, if this is true, that these two people were threatened, and remember, they didn't do anything that was at all -- other than, listen, we care a lot about the company --

>> expressing concerns about the business. but you know what? it is kind of unsavory to come out against the ceo that you were in part there replaced you. come on. >> i said that last night, two nights ago, i thought they liked -- i like the seagen acquisition. they may have paid too much but that's novel cancer and i point this out because i think the main thing that dr. bourla has done is reinvest that money. here's two people that i thought liked what he was doing. explain to me how much money was really at stake that these two very wealthy people would change their mind. >> i don't know. and i don't know if these charges are correct, that come from starboard, basically saying that they were told and threatened to support dr. bourla or else, you know, they would be the subject of litigation. >> have you seen this before? have you seen this before? >> no, this is kind of unique. and again, they step back, and now we've got this letter. this is realtime. this just came out.

meanwhile, there are a lot of questions -- bourla has been cutting costs and there are a lot of questions as to what exactly you can accomplish there by means of a couple of new directors and the like, jim. >> i think bourla, again, he got a great hand from covid, put it to work in some acquisitions that didn't work and some that did, the big one, i think, can work, but i've never -- i've never seen a "hamlet" situation like this. >> it was very interesting. d'amelio and read allowed their names to be used. >> and that was definite. >> with an activist. that was odd, to say the least. i do know pfizer was enraged. whether or not they threaten them in this way, i have no idea. >> there's still a meeting with shantanu narayen? >> yeah, lead director, of course, ceo -- he's in the middle of a tough one now. >> amazing, carl. amazing. >> we'll get cramer's "mad dash" as we count down to the opening

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time now for a "mad dash" or some stories that our viewers know. we return to time and again

because they're interesting. >> not nvidia, which is ringing the bell tomorrow. >> not nvidia, which we come to every 20 seconds or so. but nike. >> analysts can't resist upgrading it. truist comes out today and says it's finally time. i will tell you that the big debate is exactly what you talk about. there will be a turn. it's how long the turn will be. some people are saying, listen, china, if they restimulate, yesterday, sara was talking about how much it would really matter, china, nike matters tremendously. i will tell you this. the morale at nike, the momentum at nike, the dismissal of donahoe and bringing back a real hand, old hand, at nike, people love that there. they feel the innovation is going to come back. they feel that it's going to be more of a retail story, direct to consumer, a lot of money spent not trying them on. that was donahoe's initiative. it's a shame that he didn't just become the chief technical officer, but then he probably wouldn't have left servicenow

where bill mcdermott is the ceo. >> digital transformation is taking place everywhere. >> idris elba. >> what about idris elba? he does their ads. back to nike. all that being said, you and i continue to have this conversation about marathon or sprint. so, which is it, jim? >> i think that because of the destruction under donahoe, it can't be a sprint. it can't be what happened in the short time that laxman narasimhan didn't do so well at starbucks. he did not do the -- create the kind of destruction that donahoe did, particularly because this shift away for, say, foot locker, who they just trashed, mary dillon, foot locker's coming back. watch. >> all right. you are brutal sometimes. >> yeah, why not? >> nortmost of the time, not. >> we're brutal to bryce harper. we can be brutal to these people.

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delta shares are lower in the premarket. they did post a quarterly miss, and forecast q4 revenue below estimates. earlier on "squawk" today, ed bastian talked about the outlook for the consumer and consumer spending as well as where the election fits into the picture. >> we can see the discrete period a week or two ahead of the election, a week or two after the election, as being somewhat of a -- a little bit of a pause, which makes sense if you think about it, with all the uncertainty, with all the rhetoric, and people are not -- and by the way, i don't think this is just going to be an industry story. i think you're going to see it across consumer discretionary purchases as a whole. people are going to take a little caution. they want to find out what happens. they don't like uncertainty when it comes to investing dollars, whether it's buying homes or buying airplane tickets. >> coming on the heels of pepsi, jim, adding to some jitteriness regarding q3. >> look, when i listened to ed, and ed is -- ed's a really practiced guy and he said he really thought about what happens during this election

period. i will say, two things that i thought were incredible about the interview. one was that he said, look, there were some storm numbers so don't go thinking they were doing badly. but second, when phil pressed him on crowdstrike and you talk about crowdstrike and microsoft and he expects to be compensated, but then phil said, do you still use crowdstrike? his answer was, of course. i mean, wow. you would think that maybe they would leave the fold there. almost no clients on that. george kurtz. >> still trying to process this whole idea of consumers really backing off because of the election in terms of creating uncertainty. pepsi said it. i took some issue with it when sara was talking about it the other day. >> why? will you eat more frito lay's? >> i mean, really? i'm not going to book that trip? is that a real thing? >> it's a new thing you hear. that's why i say, like, ed doesn't make stuff up. >> i mean, ed argues it's not

new. he saw it in not the 2020 cycle, because it was covid, but prior cycles, this happens. >> i was kind of surprised. but i felt that when pepsico did it, that it's not -- i snapped. more nervous. >> let's get the opening bell and the cnbc realtime exchange. at the big board, the nyc members handicap children's fund. at the nasdaq, intelligent alpha, an asset manager, using a.i. models for investment selection. >> a.i., a.i. i am -- there is a notion, and we are -- there's two trends to a.i. one is real a.i., which is the, like, what we'll see from elon musk, which will be amazing. and then -- or medtronic, even, where they have a.i., which discovers 50% more polyps in your -- when you do your colonoscopy. >> yeah. >> there's the other kind of a.i., which just says, you know what? we're, i don't know, we're going to take a left turn rather than a right turn. there are moments, david, where

a.i. is overused. and sometimes, a.i. is just a spreadsheet. by the way, saw something geometrical rather than algorithmical. these are all terms designed to confuse our viewers. >> it's a lot of things. >> how is the pepsi algorithm on frito lay? is it normal? still did the 8%. >> i don't know. >> coca-cola is going to do big numbers. >> why? >> james quincey is doing a remarkable job. >> coca-cola is going to do big numbers, james quincey is doing a remarkable job. that doesn't answer the question. >> they know how to advertise. they've got the little ones that people like. i saw the jack and coke all over italy. >> did you really? >> yeah, jack and coke was everywhere at the coffee where you do your shopping, where you have to wear a glove before you touch the food because someone hit my hand when i didn't have the glove on. >> fascinating. >> you can't squeeze a grapefruit there without getting your hand slapped. >> interesting.

>> amazing the things you learn. >> worries about geopolitical macro pressure? >> i don't know, we had a downgrade of pepsi today, and i looked and said, these are stocks, they yield three, they go up over time, they have, you know, little higher peg rate than i liked. today, there was a bison davidson note, procter, terrific, great, hold. no one wants to downgrade these stocks because they're precious to people and you never go wrong recommending procter or coke. these are solid stocks. they're not going to set the world on fire, but they're solid. unlike celsius, which finally had a little jump today. >> guys, just to -- did you see the td bank thing? >> $3 billion? >> $3 billion. >> now we know why first horizon didn't get -- >> because chinese criminals were using it for their fentanyl sales to launder their money and

bribing employees. and an asset cap at td as well. >> the whole thing is amazing. and the ozempic, our whole supply chain -- >> don't get off topic. stay on td with me. >> no, i was shocked. td is a pristine outfit. >> we know now, of course, why they couldn't do the horizon deal. >> and the first horizon deal was one of those things that jordan -- the ceo, he came on. the deal broke down and i looked into it from behind the scenes, and there were money laundering issues. >> we heard it but we didn't have the details. we've gotten them previously, i think, from some other reporting, but $3 billion. >> that's a big hit. >> and the asset cap. >> charlie scharf's problem looks like child play. >> yeah, that's -- and yeah, that's quite significant. >> charlie scharf, wells fargo. >> these shares are taking a bit of a hit. ceo's already announced plans to step down, correct? >> yeah, got some other things to do.

>> apparently. as we take a look at the insurers. all state, at least -- >> remember i told you to buy chubb? these stocks, you know what they do? they go up. and then you see the cpi, it's still going up. insurance and health insurance are the real issues these days, and yet, we don't talk enough about it, how much health insurance is going up, how much regular insurance has gone up. it's your biggest bill. everyone knows that. >> it's a huge bill. >> although, year on year, jim, gasoline, down 15%. >> that was pretty good. >> used cars, down 5%. >> that was really good. >> new cars down 1%. >> carvana has been such a stock. yeah. they make the money, and you -- you ever bought from carvana? >> you ask me every time. no. i've never used carvana, never gone to their -- >> even food and homes running 1.3%. >> i know, there's a lot that you could, if you're harris, you have something. if you're trump, you have something. you can go either way on these numbers. they'll go either way anyway because that's what they do. >> or you just make it up.

right? >> is that what -- now you're accusing the government of falsifying economic data? >> no, no, not at all. what i'm saying is there's a lot of things that have been said by one side in particular that are simply not true. >> i was a judge on "the apprentice." >> truth is in the eye of the beholder at this point in this country, but not here. we're all about facts because your money is at stake, and you care more about that -- >> david faber, on your side. >> -- than democracy. >> it does take us to the fed minutes yesterday, jim, where there appears to be more of a debate than we thought. jpmorgan says this debate in november is going to be about whether to cut or hold. >> i don't know why -- how can they cut? we're just getting these numbers that are fine. you wait until the numbers just dissipate a little. they're fine numbers. i mean, do you ever look at the cohorts, david, of like who doesn't have a job? i mean, every cohort got better last month. the hispanic job level was just so much better. i mean, remarkable, when i got that because constellation brands told me, we may have

better numbers because they're levered to hispanic employment. and i just think, maybe we ought to just -- if i were jay powell, i would say, let's wait and see. we did the 50. let's wait and see. >> meaning what? we skip the november meeting? >> well, look, i had paychex on. the numbers were pretty good for company formation. the travel and leisure money, the -- the going out, dining, people are just going out. they're spending -- instead of two drinks average per dinner, they're having one and a half. got that really good stat. >> when you have a half a drink, are you splitting it with your partner? or your dinner mate? is that what you're doing? >> this works out like that. >> i see. >> crowdstrike is over $300, by the way. i was trying to pivot away from you -- >> from drinking? >> well, on to your point, jim, though, b of a has some credit card data this morning, which they saywould imply retail sales of 0.7 x-auto. that would be another healthy print. >> things are good. okay, are they as good as they were six months ago? no.

but you have a gradual decline in inflation. you are -- jay powell would tell you, look, the rates are historically high, so we have to take them down over time, but there's no rush is what i'm saying. there's no rush, and i thought the debate was kind of interesting, like, hey, you know, let's not signal there's a crisis. there's no crisis. we have these very hurried rate cuts. it's because something's lurking, something's looming. no, it's not. no october surprise kind of thing. >> yeah, historically, the fed takes the stairs up, elevator down. >> yes. >> interesting if they took the stairs down as well. >> i think they're taking the stairs. i think, david, a stairs approach is what we need. where's the real weakness in the economy right now? right now. >> i'm having a hard time coming up with significant weakness. there are obviously things that still are very upsetting to consumers, namely, the price comparisons they still have in their mind from three or four years ago. insurance, as you point out,

which is such an important bill for so many people. >> insurance is unstoppable. >> we're talking, what, 2.8% potentially gdp growth this year, carl? >> atlanta's tracking 3.2% for this quarter. by the way, 17 months of wages outpacing inflation. wages growing 4. inflation's growing 2.4. >> but we did have the north carolina governor saying that's not really happening at this point. on "squawk box." that things aren't as good. >> north carolina? not the north carolina governor. >> virginia. i'm sorry. it was a strange interview. i was thinking about north carolina, that critical race. >> talking about youngkin. they had desantis and youngkin. >> yeah, when you talk about virginia, which is dominion, by the way -- >> virginia's economy's been amazing. >> it's fantastic. you would say, well, they're doing so well. but i guess they're not doing well because the virginia governor said that things aren't that good. but this is apropos of what you were saying. >> what's the -- the truth is

what everybody wants it to be at this point. >> what do you make of that? >> i'm just going to keep doing what i do, jim. >> on your side. >> that's all i can do. >> you're so on our side, it's scary. >> and i will be seen soon on local news as your consumer reporter, yes. that's where carl's got me going. >> i just am very confused, carl, because one candidate says we're going great, and one says we're doing poorly. if you go to a sporting event, it costs so much money, we're doing poorly. if you go to the supermarket, you feel a little better. we don't measure ourselves every minute. i mean, we're more -- we're just not like that. the insurance bill is insurmountable. >> it's a great point. i want to get back to activism, if i can, guys, do a little faber report. we've been talking pfizer. now we're going to talk air products. remember that one? it is now facing a two-front war against activists. de shaw, the $60 billion hedge fund that has succeeded in getting directors on companies

such as fedex and exxon, has nominated three directors to air products' board as it seeks to curb what it calls the "high-risk capital allocation strategy undertaken by its ceo." sources familiar with the soi situation tell me de shaw has built an economic stake, it's about a billion dollars. that is similar in size to that of the other activist in air products' shares, that's mantle ridge. more on that in a moment. in its initial letter to the company on september 6th, de shaw cites what it calls a deliberate decision by the company to migrate its business further out on the risk curve, making its stockless atrektive to investors. that's over the last five years. now, de shaw has had one

listen-only meeting with almost all of air products' directors, essentially they show up, they tell the directors what they're thinking, senior management also there, but it's my understanding they have been frustrated in seeking further dialogue. and so, in a letter to the company's board that is sent today, de shaw citing a lack of urgency in air products' willingness to engage and once again lays out its demands which are led by the demand that the company take steps to derisk its so-called mega project commitments for the production of blue and green hydrogen by signing offtake agreements for these projects at what it calls a reasonable return hurdle. according to de shaw, air products expects to spend some $12 billion on clean hydrogen products, meaning its capital spending, and you can see it there, it's higher than its peers and given the long-term nature of these mega projects, it's expected to remain elevated for quite some time. that has resulted in free cash flow conversion worsening, its

return on capital declining and that is in stark contrast to the peers you saw earlier. air products did sign a one key offtake agreement this summer for its neon project with totale agreeing to a deal. for both de shaw and for mantle ridge, it would appear that is not enough. de shaw also is taking aim at the company's long-serving ceo, seeking a clear and credible succession plan for a man who is the second oldest ceo amongst s&p 500 companies. among the activist nominees is a potential successor. i'm told scott sutton, the former chairman and ceo of olin, is one of its three nominees. air products officials have had no comment on either of the activist campaigns that the company's faced and the company's directors did meet with mantle ridge's paul halal yesterday. in contrast to de shaw's desires for three seats, i'm told mantle ridge is seeking to take control of the entire board of directors. >> whoa, whoa.

>> through a proxy contest. de shaw declined comment. paul halal never says a darn word. >> great reporting. lindy -- >> but this is an interesting one as well now. >> i'm close to lindy, and lindy has said over and over again, look, these projects, you can't make money in them. why would you want to -- i would say, but green hydrogen. first of all, it's cleaner. they said, no, we're not going to do anything where you lose a lot of money. lindy's stock reflects a level of realism about blue and green hydrogen. >> the enormous amount of capital being spent by air products for, again, what at least its critics untilin the nf d.e. shaw and most likely mantle ridge, although i don't know all their arguments, is you're taking enormous risk and the capital return is many years out and your peers are crushing you because they're offering much more predictable returns. >> they're doing things that are logical until the prices of certain gases come down, and it's not too expensive to make this. i thought you were going to then

go pivot to gxo, which is up big on takeover chatter. >> i was not. >> oh. >> i was not. >> that was up 11 premarket, i think. >> it's up 13% right now as well. >> just that was a spinoff. you know? but there's so much going on in takeover world and there's nothing -- >> and activism world. not really takeover world. >> yeah, you're -- being more specific. i just find that the air products, there are some people who don't carefor the ceo, feel that -- >> and again, these are all big cap companies, whether it's pfizer, obviously, or air products at $70 billion. pfizer, obviously, at $170 billion. >> i really -- we really got to know. these people are very honorable. >> i want to get a response from pfizer as well as to these charges that have been thrown their way by starboard, basically saying that they threatened d'amelio and ian read from being associated with starboard. >> i know dr. bourla really well. >> hence their change and now

sup supportive -- >> i'm hoping it's not true. i see what's rumored, but i'm hoping that dr. bourla did not do that because that's not his style. dr. bourla is an amazing man, he's done some incredible things in his life, and he's leading the novel ways to solve cancer, which i want. that's what we need. >> jim, we knew it was going to be busy today between the macro prints and robo taxi day tonight. >> it's so big. >> your general expectations for this show? i'm calling it a show because it's on a movie lot. >> i think it's going to be huge. i think they have the most data. i think they have, you know, there's three neural networks that you have to have. he's got two of them covered by his own chips and a third covered by nvidia, and this is -- you have to have the brain in the car, the brain in the super computer, and you need a brain that kind of tells you what to do and he's got the three brains. he's the man with three brains. musk has three brains. and i think that when you look at this, he's got the data that is so unassailable that i just think this thing is going to happen so much faster than

people -- you didn't think that for a while. i think it's going to happen so much faster. autonomous, five years. major cities. maybe not new york, because new york's really hard to get around. >> yeah, new york, nobody will ever let you make a turn anywhere if you're an autonomous car. they'll just keep walking. >> that's the problem. >> you'll just -- >> unpredictable behavior, people saying hi, people texting. >> not to mention the bikes going the wrong way against red lights. i mean, come on. >> you'd probably rather have them on a bike than in a car. >> who? >> us regular people just because of the congestion that they take away from the city. >> i guess. >> in paris today, the number of bikes now outpaces number of cars. >> i think the -- yeah, but you walk. i mean, it's dangerous out there, carl. >> we live in a dense, urban environment. >> we do but i'm not expecting somebody to be coming the other way on a 500-pound moped in the darn bike lane running the red light the wrong way. i'm sorry. >> but musk's neural network will detect that.

>> eric adams has plenty on his plate right now. unfortunately, i don't think this is high up on his list. >> he does have a lot on his plate. >> we do have ev go, highest since, well, it's going to take you back to mid-'23 on this mou on a next gen charger. >> they're trying -- it's the eight-minute barrier people keep telling me. eight minutes. they got to get one more minute off. bp really backed away from ev chargers. it's a very difficult thing. the chargers, what do you do while you're waiting? that's the thing. i mean, marathon pete had these stores, like, can you really spend eight minutes getting a celsius? what do you do? crossword puzzles? >> there's an opportunity there. >> for what? >> to entertain people, send them ads. >> my wife does "candy crush" while i'm talking. how you doing on that? "candy crush" while i'm talking. >> never played it. >> hopefully, we compress the time that you spend with the charger. >> that's what we need to do. >> yes, yes. >> read.

>> i just read. >> the only read i know used to be the ceo of pfizer. >> meantime, dow is down 100. watch bonds today as well. it's busy. 30-year note auction at 1:00 and then a ton of fed speak. cook this hour, bargain, williams, and goolsbee with us at 10:10. stay with us. (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is.

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watch apple today. jeffries doubles down on the earlier downgrade and said they still believe demand indications for the 16th remain weak delivery lead times in chinese cities in major u.s. cities, they say, continues to weaken. the other news is in their journal and a piece about china detaining some taiwanese employees at a foxconn iphone factory pick the argument there is that it is eroding the

confidence that any kind of stimulus would give you. >> i saw that and i said one of my errors in the quiver i felt my people are under misting apple is the chinatown. i saw that and it's kind of chilling. >> we will talk trading with jim benemann a. dow is down 85. she switched careers to make money for your weddings. ooh! penny stocks are blowing up. sweetie, grab your piggy bank, we're going all in. let me ask you. for your wedding, do you want a gazebo and a river? uh, i don't... what's a gazebo? something that your mother always wanted and never got. or...you could give these different investment options a shot. the right money moves aren't as aggressive as you think. i'm keeping the vest. at pgim, finding opportunity in fixed income today, helps secure tomorrow. our time-tested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. pgim investments. shaping tomorrow today. is it me... or is work not working?

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it's time for jim and stop treating. >> one of my favorite stocks is blacklock and a couple points office high. the report is tomorrow and we have notes up ahead. this is one where if it goes down, bye. if it goes up, hold it. it's one i wish i had been able to say for a long time on it, don't treat it but i haven't because i've been involved with other financials. set your clock on that one. set your clock. >> that will be good to talk about. back row, global, bitcoin. >> and we have to ask about and you have these two candidates with tremendous, more budget busting, can we still grow out of the problem? at the same time is an optimist based on fact and not on touchy- feely stuff. i find him to be true north when it comes to investing. >> looking forward to that.

big friday. what is it? >> tesla just turned down for some reason. 3%. we are keeping an eye on it for obvious reasons. we will be covering the unveiling later today. >> is such a big thing. tesla is so huge because they can really swing it. if they can make it so they have the data, we are not going to be driving our cars nearly as much in frequency and taxis will be so much cheaper. waymo down 30%? it talks to you if you're out of line. >> you mentioned that. >> yeah. it's not happening when you put the executive producer in the trunk drinking a miller light or whatever? payment what about tonight? >> who knew they had cameras in the trunk? we have a company that does tele-maddox. i don't mean to encroach.

>> encroach on what? >> your telematics beam. >> i don't know. this adviser story. let's do work. >> anytime. >> see you at six. mad money at 6:00 p.m. eastern. rapidly unwinding opening losses. the dow was down 25. will become back the chicago pridt on cpi. when you're looking for answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that'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

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good thursday morning and welcome to another hour of squawk on the street. i'm sara eisen. live from the new york stock exchange. look at stocks. getting back today after record close the s&p off about a third of one person. what is working today? some sectors of grain like

energy, utilities and materials . everyone else is weaker. industrials and information technologies at the bottom of the pack but only don modestly pick the nasdaq down 0.3% after charging higher yesterday. look at treasuries. we got the cpi data and jobless claims mixed picture. 10 year yield is still above 4%. the two-year yelled just below 4% and that's where we've been 30 minutes into the trading session and here are three big movers delta on the move down after earnings missed estimates. guidance disappointing investors and the ceo expecting consumers to hold off on travel plans around the presidential election. tesla is down ahead of its big event. elon musk will reveal the robotaxi prototype tonight at a widely anticipated event in california. more on what to expect later in the show. stocks down a ittle more than 2% and nvidia named a topic in

earnings by goldman sachs after a strong start to october. up nearly 10% on the month and on pace for its best month since june. let's talk about the data we got today which is inflation. the something for everybody here. something for the bulls, the bears, the hawks, the harris and trump fans. what do i mean? the overall headline and the main news looks encouraging. 2.4% inflation for the month and that's a step down from 2.5% the month before. a little higher than expected but still it shows the trend of progress on inflation. not so hot, or a little more hot which is not so good is the core cpi. if you strip out food and energy then it's a little higher. accelerating to 3.3% from 3.2%. if you look inside the number. i pulled out food because that is sticky. you feel it at the grocery store. and when you go to restaurants and we saw that in the data. shelter at 0.2 is a good news and an encouraging sign because it's a lower price rise than

we've seen the cost of housing and shelter and only 0.3% rise in that owner is equivalent and rent series. mixed bag. here are some of the biggest cpi contributors in terms of monthly growth. apparel was an interesting one .1% higher. the rest of it comes in services and that's the problem here. services are running hot. goods prices, not so much. services overall 0.4% gain on the month. no surprise the biggest losers or decliners in terms of prices are energy and that's why the overall number went down. what do you make of all of it as far as what does it mean for that bad? here is high-frequency economics. decelerating on tran pick the latest data box the trend but does not negate it. we're watching it and importantly this will be the last cpi number before the next bed beating on november 7. and we have that big jobs report.

we will get more data before the next fed meeting but don't expect it to be clean because now we have the impact of hurricane helene and hurricane milton. the data will be fuzzy and the fed will have to look through that. we had the big jobs report and the cpi. the consensus is that this doesn't do anything to mess with the expectation of 25 basis point cut in the next meeting and then 25 after that, which is where we were set up. >> 22% odds of no cut in november and the j.p. morgan note, as we mentioned, says the debate and a member will not be about 25 or 50 but whether to cut or hold at all. >> we were all over this and talking about this idea of a hold. some fed members are talking about patients. fed chair powell said were not in a hurry. however, the consensus is they will go at every meeting. the minutes were illuminating yesterday. these were the notes from my last fed meeting where they went 50 and surprise a lot of people. here's a quote i picked out.

several participants noted that a 25 basis point reduction would be in line with gradual path of policy normalization that would allow policymakers time to assess the degree of policy restrictiveness as the economy evolved. but they went 50 and they only had one dissent, which is interesting. i think the minutes pointed to a bigger split than expected in terms of who wanted 50 and who wanted 25. why do i dwell on this? because the fed reaction function is key for investors to figure out what the fed does next and this was a surprise. people say maybe they did it for political reasons. i don't think. the fed tries to separate itself from politics. that's not the implication here. it was a curious move, especially if the data has come in strong after and now the market is starting to raise odds of a pause. >> we do have a big interview coming up to date with chicago fed president austan goolsbee. first, let's get the latest on hurricane milton which did hit

florida last night as a powerful category 3. hammering the state with several inches of rain and powerful wind. storm surge and tornadoes. we are joined from st. petersburg today. hey, marissa. >> reporter: good to be with you. we were riding out the storm and tampa and made her way to st. petersburg, which took longer than it normally does pick some of the roads were difficult to traverse. we know the bridge just reopen connecting pinellas county to the surrounding areas. some of those roads, we do see a lot of water on them. we saw a heavy rain event but i want to show you what i see behind me. this is st. petersburg. this was a big concern yesterday. we reported on the concern about those cranes and st. petersburg with gusts, if they would be able to withstand. what you say is the aftermath of one that came tumbling down. we are hearing there were no reports of injuries and reports of fatalities here. we are working to collect more information but you can see the debris scattered around the street. obviously this has been closed

off to public traffic and on the other side of the camera there a lot of onlookers taking pictures. this is what we see around here. people are gathering around even though officials are asking people not to take to the streets because of debris and downed power lines and trees. many people wondering what they will find when they go back to the homes because many took shelter. we saw mass evacuations in ways we did not see another hurricanes. we did not see this level of evacuations ahead of holly and i think that was an eye-opener for many people. they decided they were not going to chance it. roughly 100,000 people believed to take two shelters around the state because of milton and some of those people were already in need of shelter because of what helene left behind. when we were going to the streets to make our way to st. petersburg, and those flooded streets, we saw a lot of debris and we can only

assume that is from helene. we saw mattresses and belongings and dressers floating in the street. we know there were rescuers happening actively with hillsboro county. they told me those active rescuers are happening as we speak. in terms of fatalities, we know of at least four totality is in st. lucie county where the tornado touched down and we know there was a tornado outbreak yesterday. carl, i will tell you in the process of trying to figure out the extent of the damage on the ground but that is what we see so far? >> the governor telling us this morning that the tornadic tibbett he was surprising in this storm. several tornadoes and as you point out some of them lethal. marissa parker, thank you. let's talk about the hotter than inflected inflation print and where the fed goes from here with rates. steve has a special guest. >> a very special guest. we are joined by austan goolsbee, the chicago fed president , who does not shy away from joining us on days of big reports. we had him last when the jobs report came out. yeah. thank you for your courage.

let's get down to this data. cpi, i don't know, a little on the higher side and the hotter side. mildly so, anyway. your reaction to that, combined with the pop up in claims we saw this morning? >> look, steve, every time we talk i always say, let's not get worked up out of one report. these are noisy series. inflation came in around what people were inspected. there was improvement on the housing front on inflation. that was mass a little bit by deterioration on the goods front . but the overall trend is what is important. not the day-to-day fluctuations. and the overall trend over 12 or 18 months is clearly that inflation has calmed down a lot and the job market has cooled to a level, which is around where we think full employment is, and we would like to get both of them to stay in the

space where they are right now. and that's what i'm thinking about. that's what everybody is thinking about when trying to set policy. >> when you talk about setting policy and looking through the data, are you still in a process here or will you be over the next meetings and a process of trying to use, there were the chair has used, recalibrate, policy to take account for the prior decline in inflation? >> in a way it depends on the definition. as you know the rules of the fmc -- i only speak for myself but not for anybody and certainly not the chair. i found myself in total agreement with the spirit of what the chair said in the press conference, which is as idea what is happened -- we've gone through a long period where we had almost exclusive

attention to the inflation side of them and it because we had to. inflation was way higher than the target and the job market was white hot and extremely strong. and we have shifted now to a more normal environment, a balanced risk environment where we have to think about both sides of the mandate. maximizing employment and stabilizing the prices. and the hardest thing, as i always say -- the hardest thing the central bank has to do is try to get the timing right when there are these moments of transition. so, to me, it's been a series of close call-type meetings and there were probably be more close call-type meetings but we get to meet every six weeks precisely because we want to get it right and not get too far ahead or too far behind. >> so close call can have a double meaning depending on what you're talking about. 25 or 50 was a closer call with

one from the minutes yesterday then we thought between 25 or 50. now the market is thinking about , well, it's two sides of that coin are to hike by a quarter or pause. is a possible that the fed would skip a meeting, at least among the next couple months? >> you know i'm never going to tie our hands on what we will do. we still have a lot of data coming in and we are trying to figure out what's going on and i want to hear from what my colleagues have to say there at the fomc. but nothing is ever not on the table. we are always thinking about the conditions that we've seen and what's coming in and we are consulting with business leaders and civic and community leaders. we are looking at the beige book-type information, trying to figure out what the circumstances. so i don't think anybody should be stressed out. we consider all possibilities. >> i get that, austan.

the question becomes dose yesterday the minutes show that some fed officials prefer to move more gradually. lori logan from dallas used that phrase explicitly. can you -- should you get we are going gradually or do you need to get there more quickly? which is to say we did 50. is that still on the table? what's the best way to think about the piece here? >> well, rather than get wrapped up in a market timetable of this meeting was 25 and will that meeting be 50 or contemplate zero, the minutes at moments of transition like this often show that there is diversity of thought and the committee. look. it's not just these minutes. look at many of the previous minutes that have shown that. -- >> i'm sorry, austan -- i get that. fixed instruments have dates on them so people are concerned about things like timing and

that's why we ask those questions. >> look. steve. i'm not faulting you. i understand. that's the market business model is to react instantly and with great force as the data coming. the central bank, in my view, has got to take a longer view and take the sep.blocks. come out every three months. we don't talk to each other. their independent observations. it's clear that the vast majority of the fomc and the dot blocks believe over the next 12 to 18 months conditions continue to slowly and gradually improved to something like target and rates gradually come down a fair amount to something well below where they are today. that, to me, is by far the most important thing, rather than the is this zero, 25, or 50 in the next couple weeks? payment i will ask in a

different way. it's sarah. hello, president goolsbee. since your last meeting when he did at 50 basis point cut, the unemployment rate has come down to 4.1%. wages have come up to 4%. services activity , also accelerating in september to almost 55 and the atlanta fed gdp is estimating 3.2% growth for the third quarter. so if you are truly data dependent, what does that lead you to believe we should be doing? >> i mean, you cherry pick numbers. >> aren't those the most important? >> -- employment claims. we also saw progress on the inflation side on housing. we sought deterioration on the goods side on inflation so a lot of cross currents. data dependent does not mean we should base the monetary policy decision at the next meeting on what the last months data show.

and that's what i want to emphasize. we've got to take a longer through line to figure out what's going on and we want to be both forward-looking and taking account of the conditions we got in. it's as simple as that? payment yes. and you know where i stand here but not to be too backward looking but i think some people are scratching their heads about why you went 50 at the last meeting given this economic backdrop. i know there's a lot of progress on inflation, but it blurs the reaction function a little bit because when i think 50, i think you did that during covid and during the financial crisis. you do a double when you're worried about something. >> well, sara , the meeting before that, it's, literally, 60 days before we get a single jobs reading that was decidedly negative. and on this very network, we have people saying the fed is far behind and should cut by 150 basis points by the next meeting. so i just want to caution everybody. let's settle down.

one month numbers come in and that's not what we should be basing the monetary policy on. we should be basing it on the long arc. i was comfortable with sending a signal that the period where we are putting 100%, close to 100% weight on getting inflation down part of the mandate, that was a chapter and we've largely moved out of that chapter. now we are in the chapter where we have to think about the balance of risk on both sides of the mandate. and if you are close between zero and 25 and then at another meeting your close between 25 and 50 and then at another meeting your close between other things, there are no fractional cuts so let's take it in totality over a longer period. >> yeah. austan just a follow-up on sara's question there . a big part of when you appeared with us last time was risk to the employment mandate, side of the

mandate. what happened in the last report were not only were your higher above the estimate, a big number, 250, you revised up the prior two months. i think one way to get at understanding your thinking for our viewers is layout the risks for us as you see it. do you have the same kind of concerns you had about the employment mandate you had when you met with us last time? did the jobs report from september change that risk at all? layout the risk? are you still concerned about inflation being a little bit higher than the target? >> i mean. look. our job is to be concerned about everything. as we get numbers that illustrate if they continue to illustrate that unemployment is not deteriorating, it is kind of stabilizing at a steady state, full employment level that were

relieved some of my concerns about what the dangers are, as i described back then but the question is, can we hold here had something like a neutral full employment rate, or will we crash through that as might have happened in previous business cycles and that's the thing that i'm trying to wrap my head around. and the more numbers that come in like the jobs number last month, and it's not just unemployment and payable reports. let's keep our eye on the vacancy to unemployment rate. let's keep our eye on the quit rate and the hiring rate and the measures of the job market. if they are stable, i will be less concerned about that york >> austan. i appreciate that. is a question though. you do not bring up this phrase that's been out there. this notion of passive tightening. that if you don't adjust rates , then you essentially get tighter because inflation has fallen so much. how much does the idea of undoing or avoiding additional

passive tightening animate your view on policy over the next several meetings? >> on the next several meetings , less. you know i have been talking about that idea of passive tightening that we set the rate high and held it there for more than a year as inflation came down so that was tightening. now as the fed has been moving, the passive tightening is not as relevant, is not as big a component and like i say, i refer you to the s.a.p. dots. there is a big majority of people saying they see conditions slowly settling down at steady-state levels on unemployment and inflation. and the big outlier that is not yet anywhere close to where it's supposed to settle down is on rate. so, over a 12 to 18-month period

, i think we are going to gradually, whatever word you want to use, moved to kmart steady-state. we are trying to freeze the dual mandate performance, basically, exactly where it is right now. that would be a very good outcome. so, i think the passive tightening is less relevant in a world where the inflation has already come down, almost fully to target and the rates are coming down more to match that. >> okay, austan, thank you. i will speak for sara and the crew to say we really enjoy you coming on especially on days like this to chat this through with us. >> great to see you again. >> it's better than just hearing us and talk about it. thank you.

as we head to break, here's the road map. tesla ceo elon musk gears up for his unveiled tonight at the highly anticipated robotaxi event. will it be enough to move the needle on the stock, which has been underperforming the past two years? its earnings season pick e g nkthbibas getting ready to report first and that starts tomorrow. we will get you ready. 3 million without power in florida as hurricane milton leaves a trail of destruction. we will talk with the ceo of tampa electric about the race to get power back on line.

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is on for tesla's much anticipated robotaxi event that the stock has been rallying lately but still negative for the year and down a little over 1%. our next guest is in los angeles hitting ready to attend the wheat robot event tonight and calls this a seminal and historic day for musk and tesla. he is here to discuss. our viewers know you are able. dan, what are we going to get? are we going to get info on cost per mile over all, scaling the cyber cap? will we get info on whether or not they have a ride-sharing app or insurance costs? i want some details. are you going to get them? >> i think it will be heavy on details. importantly this is showing autonomous. in terms of true autonomous. this is going to be a game changer for tesla and i think they will show on the rollout that by the end of next year

this is something within certain cities that will be ultimately a reality. and when you start to go through per mile and look at miles driven, i think from a fleet perspective relative to what we've seen with waymo and everyone else, i think this is a new chapter for tesla. you do not walk away shrugging shoulders. i think this is a game changer. >> do you think you will walk away with enough information to put a model together, discounted cash flow model based on your own assumptions in terms of where this thing goes that you can start to, to a number in terms of per shares to what it will mean for the company? >> yeah. to me it's what is the timetable. clearly, obviously, there are promises in the past that have not worked out here. i think were talking not just by the end of next year but what will ramp up in the next few years. three or four years. look at that mean in terms of

the fleet. 6 million cars out there. eight or 10 over the next few years. what ultimately does that mean? this is your margins. this is really building out a whole new business for tesla. and i think we could be looking at something based on our math three or four years else, this could be 20 or 30% of overall profits >> 20% to 30% overall profits of the company profits will be from their effort here. you say that it represents $1 trillion of value for tesla over the coming years. how do you get to that number? >> there i look at fsd and autonomous relative to cars on the road. this is not just for tesla. they are looking at oem technology. and when you look at some of the numbers out there, we could be talking about 10, $20 billion annually per year that they are starting to ultimately deliver when this ultimately

gets to scout. i don't do this necessarily as a massive thread to uber but look what uber did to ride- share. when we look at the broader market here and ultimately the software driven and the margins, i viewed this -- this will be a date we look back three or four years from now that starts to change the next phase of the tesla story. >> you don't worry about the regulatory approval needed for autonomous vehicles on a state- by-state basis, which is where they are given. i guess 29 states and washington, d.c. currently have autonomous vehicle operation mandates and i guess there are certain friendlier states like texas but isn't that a factor here? >> look. i think david's question on the cost per mile is something i would expect to hear about and that is important in terms of what we are looking at. but regulation is the biggest hurdle but i think that something state-by-state and on the federal side. clearly they will have work cut out for them, but that is something. i think it starts tonight and

over the coming 12, 18 or 24 months, i think regulatory ultimately is something they will be able to navigate through. and that's the important thing tonight. not just the technology. showing how we got there and what the road map is. >> dan, we will be listening closely and i'm sure we will have you on to tell us your thoughts about what you heard. thank you. >> thank you. check out shares of trump media rallying 15% and on pace for five positive days in six. shares have soared 45% over the past week. we will get more on big movers today when squawk on the street continues.

welcome back. here's your see and be seen as up day. palestinian officials say nearly 30 people were killed in an israeli strike at a school turned shelter today in gaza. the israeli military called the

attack a precise strike on terrorists, who had a command and control center embedded in the school. social security increase will be the smallest in four years. the social security administration set the cost-of- living adjustment in 2025 to 2.5%, which will average about $50 more to each monthly benefit check that the increase is based on consumer price growth in july through september, but social security advocates worry it's not enough to keep up with prices and a pushing for a new way to calculate the adjustment. tennis legend rafael nadal announced his retirement today. the 22-time grand slam champion said it was a difficult decision but said he has not been able to play without limitations these last two years, which have been plagued by injuries. the spanish star says he will play his vinyl match in november's davis cup. back to

you. >> thank you. wonderful champion. thank you. new developments in the activist campaign of pfizer. the former ceo of pfizer and read and the pharmacy or for my frank d'amelio have issued a statement through guggenheim that they are now fully supportive of ceo albert barlock . that is an abrupt change or significant change from last week. the two have been in touch with board members urging them to support elements of the star board campaign. and this morning we get a letter from star board saying, released claiming that according to them it's people within pfizer and/or their representatives who contacted mr. reid and mr. emilio and reportedly threatened to commence costly litigation against them, clawback prior compensation, cancel and vesta performance documents unless they publicly released a statement supporting the current ceo, dr. albert bourla.

have not heard from pfizer . have reached out to their representatives to get some sort of a comment in terms of the latest charges from star board. but, sara, as i think we noted at the time, the association of both mr. reid and mr. emilio, who had not stepped down from the company that long ago, was unusual to say the least. >> especially because bourla was a success for. >> and emilio had been there for so many years. is not something you often see. a former cfo at disney was part of his effort when he was an activist at that company but that was many years prior. this was just the previous administration and so i do know that many at pfizer were incensed at the idea of these two would be doing that but they clearly have backed down. whether or not they were in some way coerced into doing so, you heard from mr. smith at star board, i don't know where

the truth lies. >> one question i have is how much of this campaign do we know centers around albert bourla and getting to management. is not fully clear. clearly star board is critical to look at the decisions around constant discipline. what does that think about the ceo and is that the primary issue here? >> it's a great question and i don't know the answer. i think it's part of it. since i got is it was not necessarily the central issue. to your point, it's more on the cost side, although they have undertaken significant initiatives in terms of cutting costs. rightsizing the company for what is the current revenue stream, as opposed to what they had anticipated given the huge bump they had in revenues. you know, it's not the easiest thing to undertake activism at companies like this. of course we are betting in part on new products and new drugs feeling a surge in revenues and profits that will be years down the road. >> game changing and life- changing, r&d decisions and

drugs. there were reports that bourla was a meeting with star board. >> i believe he is scheduled to meet with them next week . >> i mean, if he is getting attention at the highest levels, that could be a sign that maybe they could work something out. that is to be continued. still to come. more than 3 million people losing power after hurricane milton lashed florida. people get a fresh read from the ground but the head of one of tampa's biggest electricity providers and the challenge ahead. stay with us.

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welcome back took a squat on the street. hurricane milton's devastation leaving more than 3 million households and businesses without power. tampa electric ceo archie collins joins us with storm recovery measures. he has over 800,000 customers, of which 500,000 without power. i know you have a lot to do so today for joining us. how do you even begin to address this? >> first of all, thank you for having me on this morning. this is, unfortunately, the sort of thing that utilities in

florida are really good at. when it comes to storm restoration, designing and operating very resilient electric grids, this is something we have with a fair amount of practice set. at tampa electric, this is our third time this year dealing with the hurricane first we had debbie and then helene. milton is the most significant of those three. we have the resources we need. we have brought in -- we have 6000 utility workers we have marshaled from across 20 states to help with this restoration and we are confident that in fairly short order we will restore this community back to some semblance of normalcy. as going to ask, what does that mean? how long does that take to restore 500,000 homes or businesses with electricity?

>> it's a bit early for us to say that. it's only been 3 1/2 hours since dawn broke and we been able to lay eyes on our assets. so, we have our employees out now fanned across the service territory trying to take stock of what the damages. our expectation is that the damage inflicted on the electric grid is not so much structural damage to the assets themselves. that it's mostly trees and limbs that have come down here so it's a matter of clearing those as quickly as we can. working with our community partners. and then putting that overhead infrastructure back up in the air. i don't exactly know what the timeframe will be. it took us about 36 hours to deal with the impacts from helene. our expectation of it will take a bit longer with milton. but i would be a little uncomfortable to put a timestamp on it just yet. >> were you preparing for a more direct hit on the dense, urban environment around tampa bay and are relieved that it did track to the south?

>> we were planning for a direct hit. i mean, that is the nature of storm restoration and their preparation work we go through. we can never afford to be wrong . and so we resourced for a direct hit from a category three. the fact that the eye made landfall about 30 miles to our south certainly was a blessing for residents who live along tampa bay, insofar as we avoided the storm surge, which everybody was so concerned about. but the bulk of the strong wind associated with milton were on the north side of the eye and we felt the full brunt of the eyewall as it moved west to east across the city of tampa and across hillsboro county. and so the 6000 resources that we have brought in, really is what we are going to need to

affect the efficient restoration here in tampa. >> does it change the economics of your business what is happening in florida? that these hurricanes have intensified and they are in frequency and severity and there is so much cleanup to do? >> i don't think it changes the economics of her business. here in the state of florida we enjoy significant political and regulatory support for great resiliency. we operate -- i've been in this business for 34 years. i know what utility grids should look like. the grid that we own and operate here in tampa is the most robust, most resilient electricity grid that i have worked with. we enjoyed good

support pick we have regulatory mechanisms to quickly recover the costs, the incremental expenses associated with recovery from a storm like this. so, no, not expecting that a change the economics of our business in a meaningful way. >> well, we wish you a lot of luck and hope you can restore people's power as safely and efficiently as possible. thank you for joining us to talk about it. >> thank you so much. >> archie collins, ceo of tampa electric. and angels treading at fresh highs as the big banks began to report earnings tomorrow and into next week. we help get you ready. and next our former nec director and former goldman sachs president gary: it joins us with reaction to the relation number and his outlook for policy and the presidential election. that's on money movers. n'go anywhere. squawk on the street will be back with the dow down 111.

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expected rate on the consumer price index could have an impact on the pace of future interest rate cuts from the fed. one trader thinks expert patients have gotten ahead of themselves and is looking at a strategy to capitalize on the disconnect pertinent to our market navigator segment later today. power lunch at 2:00 eastern.

earnings season beginning tomorrow. the big banks first to report results. we would hear from j.p. morgan and wells fargo will bank of america, morgan stanley will follow in quick succession. leslie has more on what we should watch for fresh off an interview with the j.p. morgan c.o.o. what are we looking for? >> there is an overarching question marks earnings about how banks will perform in this environment. one with the steady economy and faster rate declines. so far the uncertainty has been beneficial with the financial sector at a record close yesterday, off a little bit

today. market rates have been gaining despite the fed decision in september to cut 50 basis points and that helps alleviate some of the downward pressure on floating rate loans that you might otherwise see in a cutting cycle. and the fact this cutting cycle is happening because inflation is coming down and not costs f transactions. it's against this back drop investors will be focused on net income interest, in loan making. in a conference in mid-september jpmorgan cio said expectations were too high. at the time that spooked the market a bit and sent the industry lower. i asked him in our sitdown yesterday whether the gap between expectations and reality has since been closed. >> the reason why we moved the measure to the market because we saw analysts were too optimistic on what to expect on what the rate curve was showing at the time. so, i think that we are -- --

have stabilized, too. ni. at the time was a bit too high at the time in their expectations. now they have adjusted that. >> you think the expectations are now more acceptable? >> they are more reasonable in line with what we have -- what i mentioned at barclays, yeah. >> i also asked him about succession given that ceo jamie dimon calls pinto his hit by the bus successor, meaning if there's an emergency he would slide into that role. he enjoyce his current role but they are testing a group of leaders that one day could be capable of succeeding dimon. you can catch the full interview on cnbc.com. >> you will be all over the calls in the morning? >> all over the morning. going to get a good night's sleep. speaking of financials, one interview you do not want to miss on "squawk on the street" tomorrow, blackrock's larry fink, we'll talk all things market, crypto, geopolitics.

this hour, the former president's new campaign pitch ending, quote, double taxation on americans living overseas. (vo) time to move? make it easy with opendoor.

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a new tax move that could open up a loophole for wealthy americans that move out of the country. robber frank with more. >> more tax cuts. former president trump saying, i support ending double taxation for americans overseas. he says, register to vote, and vote republican. the campaign not providing any details on that plan. there are over 4 million americans living overseas, 2.8 million registered voters. the united states is the only country in the world that taxes their citizens no matter where they live or where they earn their income. for americans overseas, the current system has a lot of paperwork and compliance, but not many costs or taxes. they get on u.s. tax credits for taxes they pay to a foreign government. that's an offset. any income under $126,000 is exempt. if this is broadly defined, and if it ever passes, which is unlikely, it could open a huge loophole for the wealthy. here's why. if u.s. truly switches to

residency-based system, wealthy investors could move or set up a family office in a country with no capital gains tax, like singapore, dubai, new zealand, and they could live on their investments tax-free. currently the only way to avoid u.s. taxes is to renounce your citizenship and pay the exit tax, which, of course, is a capital gains tax on all of your assets. now, for more on the tax policies and the wealthy and who gets affected, head to cnbc.com/insidewealth. new newsletter out this morning. you'll want to read it. >> definitely want to read that. i mean, this -- there's a long list now of tax breaks. >> social security, tip income, overtime pay. it just goes on and on. and this is a big block bloc of voters in a tight race, because there are 2.8 million eligible voters overseas. in previous elections that's a bloc that hasn't voted much. it's sort of an undervoted

group. so, unclear what state they're actually registered in. a lot of them could be registered in new york, california, so, unclear whether that would really affect a swing state. but every voting group. and right now it's give that group a tax break. let's get their vote. >> it is weird that we do that, though, the double taxation, no? >> yes. we're the only country that does. >> obviously, the election would appear to be extremely close, so every potential vote will make a difference. robert, thank you. >> thank you, guys. >> robert frank. we've got down market overall. we're starting to see a little life in some big cap tech. nvidia shares, i would note, are up yet again. live market coverage continues after this.

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good thursday morning. welcome to "money movers." i'm carl quintanilla with sara icen at post 9 of the new york stock exchange. coming up, gary cohn with his reaction to cpi. but lizhis outlook for the presidential election. ceo antonio