unwinding of the rates and we'll see how that progresses over the next year, but all in all, i think you've gotten a flattening of the curve, no more inversion, and that should lead to a better environment for the big banks. >> macrae, thank you a lot for joining us today. let's take one more look at the markets before we hand things over to "squawk on the street." you will see the futures at this point basically flat, a little bit weaker. dow off by about 12 points. nasdaq down by about 65. s&p futures down by three points. the treasury market, we're continuing to see the ten-year just above 4% at 4.09%. the two-year, just below at 3.96%. that's going to do it for us this week. it's been a fun week. it's been interesting. we hope you have a great weekend and we hope to see you right back here next week. bye-bye. "squawk on the street" begins right now. >> see you later. >> see you later, alligator. ♪ good friday morning, welcome to "squawk on the street," ai'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. futures are a bit soft as

financials kick off their earnings season with some outperformance. watching reaction to tesla cyber cab, headline ppi comes in light, matches the lowest print of the year. our road map begins with the big banks, jpm, wells and blackrock crossing the tape. >> tesla shares are -- there he is -- tesla shares are under pressure, why? well, elon musk's razzle-dazzle robo taxi unveil seems to have failed to impress investors. and the bull run turns 2 years old tomorrow. the s&p is up 61% since that bear market low in october of 2022. carl? let's begin with the reaction to these quarterly results from the big bank. maybe the biggest surprise is this nii gain at jpm. >> that's terrific. by the way, we can talk about wells fargo nii next quarter is what matters. that's why wells -- one of the reasons why wells is looking up. i want to take the other side of the futures trade today.

this is a big day. we had ppi was good. we have the futures looking a little soft. interest rates are obviously not cooperating yet, but so many times, we've been in this situation, carl, where we have had good banks, good numbers, and then people start selling them off as the day goes on. i say if we have that again, just buy them, because i am very impressed, blockackrock, not rey a bank, but in some ways it is. wells fargo, nice upside surprise when it comes to wealth management and investment banking. david, they are becoming an investment bank in a way that i didn't think they could do so fast, charlie scharf, with people like doug. >> yeah, doug bron stein, the vice chairman over there, long-time senior manager at jpmorgan before heading out briefly -- not briefly, for some period of time on his own, running an activist hedge fund for some period of time of that. but you're right. wells, generally very positive. we're more or less positive response and in fact, i'm

looking at the general characterization from the analysts who follow many of the banks, saying, not seeing, really, any high-level, hard to really say anything's negative on the broader economy by looking at these results this morning, jim. >> and i also want to point out there's technology everywhere. head count under charlie scharf has gone to 220,000. there's a lot of these banks. jamie dimon does this too. a lot of these banks are making a lot of money in a less risky way than they used to. at this point in the economy, normally, with the fed tightening, you would expect to see big credit problems. nothing. really nothing. >> and carl, the focus certainly on net interest income, whether it's at wells or certainly at jpmorgan, especially at jpm as they head into the new year, there does seem to be an expectation that number will come down. we're still waiting on the call, essentially. >> jpm is -- wells fargo's no. wells fargo is bottom.

>> correct. right. >> that's why everyone's excited about it. you look like it's a bad quarter. it's not. it's ha very good quarter. >> provisions were in line, about $3 billion. some of the qualitative commentary out of that call, that the earnings do reflect a soft landing or no landing, in their words. >> that's why i said i want to take the other side because these quarters are incredibly constructive, but the banks ran into the quarters, and i want to say, listen, cut out the noise. if you want to look at something like what -- at the opening bell today and the nasdaq, you'll see jensen huang, and you'll probably have sold nvidia a hundred times if you just looked at the ppi and you looked at the -- at texas instruments, then the cpi. i'm urging people to stand pat on a lot of these stocks, and it's certainly on nvidia, where you shoulded own it and do not trade it. >> got it. >> he's ringing the bell. >> i noticed his brief

appearance on "squawk box." >> we could have moved up there but that would be usurping. >> the most important businessman after musk. >> david forgot. how quickly. >> no, no, no. >> the cyber cab, david just tipped his hand. >> musk remains the most consequential businessman. he probably is on the -- on the planet. >> jensen is -- >> jensen is nipping at his heels, right? >> less controversial. jensen huang's famously told me that he is a lover, not a fighter. >> is that what he told you? >> musk is not a lover. >> he may do that, but he fights a lot too. >> knows the private life of everyone. what do i know? >> well, he's trying to repopulate the world. you got to love to do that. >> why do you go to places when it's so easy to talk about the net interest income? >> you don't want me to be prurient? >> i would rather talk about larry fink, who i regard as the most consequential person, maybe eclipsing jamie, when it comes to -- >> that's high praise.

>> assets under management, $1 $11.5 trillion, up 2.4% in are a year. remember when it hit 10? that was news. >> we have to say to ourselves, this guy, larry fink, is in charge of more money than anyone in the world and yet it keeps growing as if it's a small cap and that is a testament to everything from his technology to his personality to the vision that he has. i find when i speak to him, i get a level of clarity about retirement, level of clarity about savings. he is the spokesperson, and he's not, by the way, a doomsayer. he is an optimist and i think we are going to make that point when he comes here. >> operating margin up almost four points, fighting a slightly higher tax rate, even, on the quarter. >> and remember, really much more involved behind the scenes in terms of china, in terms of mexico, in terms of even -- i want to find out how much he knows about what's going on in our country in the election and the candidates.

he's go-to, and i want people to understand that the reason why we have him on the show is that he may be the most go-to business person when it comes to the world. the world. and what being a banker means in this century. >> so, is the earnings quarter -- is the season shaping up typically? a couple consumer names to start us off, we get worried, banks come in and reassure us? >> and then we get apple and people don't like to succeed, and then amazon comes in and says something about retail sales not being that good. they should be talking about thursday night games. great football this year. to me, this is already business as usual. jpmorgan up four as everyone gets excited. then they listen to the call, and jamie, historically, like jamie does, these guys from queens, they come on and they're just downers. i don't know what that's about. >> it's interesting. i've never thought that we all sort of -- we unite around -- yeah, we unite around some pessimism. >> negativity. >> because we've been mets fans all our lives. >> time to change your tune,

partner. >> that tends you towards periods of brief euphoria followed by despair. >> he recalls queens. >> yeah, he does. no, he fully acknowledges. queens guy. i followed in his footsteps. >> i do think that this is so typical, that someone jumps the gun. you can't jump the gun because jamie dimon's not a hype artist and he's going to say something that makes you feel the world is uncertain. >> by the way, we should point out, jim -- >> what? >> -- that the stock is still performing better than it has the last couple times it reported earnings because our viewers certainly may recall, it dropped significantly >> well, i just think the first move is always the wrong move. >> and then made that up, by the way, as you see, didn't last for long. it's not quite at all-time highs. >> charlie scharf -- could you not wear a tie for today? >> i don't wear a tie every friday. you know that. >> jensen huang doesn't either, and he's richer than you. >> well, about 106 billion times richer.

>> he doesn't watch, trust me. he doesn't. wells fargo, people have to understand that charlie scharf came in, he's got the asset cap. maybe he got a little bit of break, although i'm sure he doesn't want this, where td has the asset cap now, but you're seeing stocks react to ppi interest rates, and what i'm urging people to do is react to the earnings and charlie scharf has bought back something like 20 -- i was doing the calculations this morning. he's bought back 22% of the shares since he came in. and he bought back a huge amount of stock this quarter, even though he said, well, maybe not. $3.3 billion. this is the guy who is the modern-day, my stock's too cheap. jamie, on the other hand, said, listen, we're not buying back the stock. charlie scharf is making a statement. he's making it. >> i'm listening to you. i am looking occasionally at my phone because unfortunately, that is the way that people communicate. if we want to be in realtime, i need to look at my phone, okay? >> david, when i look at the

wealth management line, and when i look at -- i got the cows. >> you fully acknowledge we get texts from people who we need to see what they have to say. >> "candy crush." >> yeah. >> never played that game in my life. >> i'm trying to explain why wells is up. >> if i'm not fully paying attention to you, you start to have a little problem. >> i have angst. >> i'm looking at you. tell me exactly what's going on with wells. >> what's going on, bell, wells is turning into a premier investment bank much faster than people thought. the revenues were really extraordinary. >> you started the whole show by saying that. >> he was listening. >> he was listening. shocking. where should we go? i'm willing to go anywhere you want. >> let's do tesla. under some pressure premarket, as you know, last night at the company's long-awaited robo taxi event in california, musk unveiled the cyber cab, which is autonomous and has no steering wheel or pedals. the price tag will be under $30,000, with production set to

begin before 2027. this is musk offering his vision for the cyber cab. >> we'll move from supervised full self-driving to unsupervised full self-driving where the car -- you could fall asleep and wake up at your destination. >> tesla also showcased the robo van, which transports up to 20 people. the reaction, jim jeffries calls it toothless. adam jonas at morgan stanley, the title is, "that's it?" >> we're working on a piece today about it for "mad." you can't sell the guy short. you can't get out, but we didn't have the details. the robo van is not really that attractive to people. we didn't get enough about the next new iteration of just the regular tesla, but david, one of the things that struck me is that uber's up a lot this morning. >> it is. >> one of the reasons i think is because his car has two and you can put fathour in a waymo. you can put five but that person has to be in the trunk and they catch you.

>> uber is uber for now, is what some of the investors are saying. >> what did you say? >> i said uber is the uber for now. >> wow. the forecast is the forecast. >> the forecast is the forecast. but your point is well taken. you can take a look. uber shares up almost as much as 6%. before we get started with trading 20 minutes or less from now. yeah, generally speaking, not a particularly positive set of reviews. again, given the lack of specifics that some had been hoping for, not to mention you sort of hoped they would introduce some new model. that didn't happen, right? >> i did. i really did. >> didn't happen. lack of data regarding change on fsd overall tech, ride share economics, go to market strategy. that's from morgan stanley. you just mentioned jonas earlier. i'm looking at b of a. "while investors may see little change to potential competition from tesla long-term, we knew a cyber cab prototype was coming." event lasted only 19 minutes with less concrete details and timelines than feared for uber in their view, so that's sort of

more positive. jeffries, "tesla's toothless taxi. best case outcome for uber." >> i know. >> and on from there. that said, it's musk, and you know -- >> people are counting him out. >> you can't ever, ever, ever, as people like to point out. he is the only guy, basically, taking rockets up there and then landing them without any issue. by the way, i would like to point out both of my colleagues right now are on their phones, so i'm not the only one. >> i'm looking for the picture. >> we got a wide shot here, you can see what's going on. >> i'm looking for a picture of regina in the truck, waymo, to show you you can fit five in a waymo versus two with musk's thing. >> the most interesting part for me may ultimately be the robots. >> oh, thank you. optimus prime, man. >> optimus. we don't have this because we couldn't verify a lot of it, but you see on x, people talking to the robots. and you know, they're just getting more and more advanced,

and the fact is that what that means for the total addressable market, for example, for nvidia chips -- >> thank you for saying -- >> recapped a meeting they had with investors this week, and jensen said that the humanoid robot thing will generate a new total addressable market for chips. you like that. >> yeah, well, because that's the doge. that's the neural network that he's created in conjunction with the two of them working hand in hand and the robot, we're all going, i'm going to tell you where jensen is really going. we're all going to have our own robot. >> that's what musk says. >> but it's true. by the way, the new -- i got a lot of chatgpt kind of thing. right now, you ask chat something and it comes back with, what's the price of a d domino's pizza? it's like $7.50. emergency pieces, down to $5. but the new iteration is, could you please compare the gross margins of domino's to the gross

margins of mcdonald's and it will argue one way to look at the gross margins is this but you might want to look at it like that. it's about to get in depth and it's another level and instead of being a high schooler, it's going to have a graduate degree. >> also the advances that have been made in the voice technology at this point is really incredible. i don't know if people have used, whether it's chatgpt right now, which i have been trying out and talking to regularly. >> thank god. >> general voice response that you get there. not to mention this google notebook. people have been using that lately to create podcasts. a friend a couple of weeks ago had used it, said, i asked it to do a podcast on you. i mean, they go. it's a man and a lady voice. they sound very natural. you put that in robots, and there you are. >> and wait 'til you see what agent force is doing. i know jensen huang likes this very much, where you want to ask for the agent. the agent knows more than almost anyone. you don't want to ask a human. let me speak to the agent, please. there are things happening so fast now, carl, that i am

mesmerized. jensen goes to baltimore, boston, here, and rings the bell because 25st anniversary of the g-force, and you realize that things are happening so fast that you can not keep up. the human brain can't keep up with what the neural networks are doing. >> you think these robots will -- i'm thinking back to an interview with did with musk, i don't know, ten years ago, where we asked about guaranteed universal basic income because of the jobs that these robots may one day take. >> i do believe -- we're carmine, and we did an amazing thing, a great thing about immigration, and the number of people that we are having in this country, the dearth of people, you do not have enough people to handle our business, so in order to be able to make it so that everybody has a good job, we're taking away the -- i know the longshoremen don't want to hear this, but what he's doing is saying, we have to have more people quickly. we're not. what we have is robots. >> hopefully they take the work

that's true drudgery and everybody else moves up, so to speak. but there's a divergence of opinion here, but there is not a shortage of people who i do have a talk with about a.i. and the future of it and they do come back, carl, to what you just mentioned. ui. universal income. because you get to some point where the intelligence obviously exceeds our own, and then it's like, what do we do? what are they doing? how are they doing it? what are people doing every day? and you do get back to at least some who believe that. others, of course, believe it will only create more jobs. the old -- which has been the trend throughout. >> the loom. the sewing machine. i mean, these are things that created tremendous productivity gains. that's where jensen is. this idea that we're somehow going to be short-circuiting the american worker, no. >> the things you mentioned, the printing press, the loom, were operated by people. that's not the case here. >> no. >> no, it's not, because they don't need us. >> right. when you have a robot that's capable, physically, of doing virtually anything a person is, and they get to the point where they can have full dexterity in

that fashion, and they have a brain that is the equal, if not exceeds our own, then what are we doing? what are we doing? how many years away are we from that? >> you want to know? >> yeah, i want to know. >> two. >> two? >> that's, like, soon. >> yeah, the -- you have the current iteration of nvidia, but the next iteration beyond blackwell. it will be very hard to think -- >> you may still be around in a couple years. >> i ain't going anywhere, partner. >> 'til the robots host this show. >> believe me, i'm a luddite. i can smash any robot i want. >> you do work out. when we come back, the market's on track for a five-week win streak. take a look at the premarket here as we will talk about this weekend and what it might mean for china, stimulus, and whether you buy that dip in a minute. you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space?

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all right. it's a friday "mad dash" as we get ready for the final day of trading here at the new york stock exchange. i want to talk a little j&j. >> just ripped from the headlines. we have a two-seater versus four-seater waymo. we could go endlessly on that, but let's talk about j&j. they have had this ongoing really difficult lawsuit series about talc. they have been trying to get that to texas in order to be able to get a better form. we called that forum shopping when i was at law school and they won a basic victory last night. the new prepackaged bankruptcy is going to be -- it's called red river -- is going to be in texas. it's staying. government hated this. the plaintiffs didn't want it. but this is the beginning of the end of the talc problem. it still could be an 8 to $10 billion, but they could do it over multiple years and nobody deserves this more than j&j. they've really gotten so many of

the plaintiffs to agree, david. >> that's a big statement you just made there, jim. >> they had about 83% of the plaintiffs agree and it's in texas which means it's not in jersey where i thought they would lose. i knew they would lose if it was in jersey but the fact that it's in houston is very pro -- >> what is the discount that's still embedded in the stock as a result of concerns about this litigation? >> 12 and it's only going to be around 8. >> 12 -- >> i thought it might go up to 12. i don't think it will. multiple years. >> how are the fundamentals for the business? >> i'm glad you mentioned that, because the fundamentals are excellent. merck hasn't done that well. we didn't get to talk about pfizer. unless you have glp-1, everything's disappointing. >> it's all about lilly in one world and nvidia in another. >> you don't need me. you just need a robot. >> i'm going to replace you with a robot. i'm going to put your brain in the robot. we got an opening bell coming up, of course, followed by blackrock ceo larry fink.

he'll join us right here at post nine. don't go anywhere.

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take a look at the nasdaq this morning as jim mentioned, jensen huang and nvidia ringing the opening bell after crashing the "squawk" set this morning. made us a couple seconds late on ppi, but it was worth it. >> i think people have to understand that he has had a three-day road trip. that's why the stock's been levitating. all the big accounts that own the stock, he's very loyal. if you want to hear what he's been saying, you go to the tech unheard. that's the podcast of rene haas, who used to work at nvidia, now runs arm. here's what i think. chatgpt needs every chip. zuckerberg needs every chip. musk needs every chip. jassy needs every chip. the demand is so unbelievable here that we have to recognize that this is a multiyear phenomenon, not one iteration, not two. and he says, software never

dies. jensen huang is one of the most influential people in the world and he's a force of good. >> at the big board, it's beazer homes. and nvidia at the nas celebrating 25 years listed as huang does the honors. >> we talk nvidia, of course. amd yesterday had an important unveiling of a new chip. you talk about the unlimited need for these gpus. amd entering that market previously, now a launch to try to compete with blackwell. is there just a function that there's so much need they will succeed? what do you make of the negative response? >> last year, she did the same thing. five days later, the stock was up a lot. aws wasn't there. apparently. there was not a big presence for jassy that people were worried. she's doing a remarkable job. you want to own that stock too. she is, without a doubt, got the clear number two, not intel.

i can't say enough good about her, and i can't say enough good about the next guest. why don't we get started? >> you want to do that? >> i really do. bring in larry fink, and i don't think people understand that we're now about to speak to the person who has more money under management than any -- i was going to say g-d but i don't want to do that. larry, congratulations. you are doing the impossible. you're organically growing the largest asset base in the world at a level that's high single digits. it's impossible. so, tell us how you're doing it. >> well, hi, everyone. how are we doing it? i think it's, you know, we also had our 25th anniversary a couple weeks ago. i think we positioned the firm to take advantage of the growing capital markets worldwide. i think the foundational belief when we started the company 37

years ago, when we went public 25 years ago, was about more and more of the world's economic growth will be financed through the capital markets. and we positioned ourselves in that in all different measures, and 2009, when we did the acquisition of bgi, we had a belief that etfs are going to be one of the vehicles in which we're going to be doing more and more economic activity. you know, when we bought bgi, i shared had 430 billion. today it's 4.2 trillion. even in 2012, when i, on this show, i said, etfs are becoming the major engine for fixed income, we crossed a trillion dollars of fixed income etfs. and now, what we're seeing through the capital markets is the blending of privates and publics. i think we're going to see portfolios that are going to be looking at publics and privates in a blended way, and that's why analytics and data are going to

be even more and more important in the private area. we acquired frequent. we'll close at year-end. i think that will be the major component of making privates even larger and it will roll the capital markets even bigger. so, we're seeing now private credit becoming more the domain of the capital markets, away from banking and insurance. this is all a part of the growth of the capital markets, and blackrock's now positioning over the next five years of becoming a large-scale player in india and what we, you know, we are working on creating a whole new retirement platform in india with our partners, geo. so, all of this is just building on the capital markets and then, importantly, when i think about our role, we're, you know, we own a large share of every company in the world in the credit business and in their equity, and so we're perceived

as a long-term investor, a partner with all these corporations. we're not this transactional firm going in and out. and so, when you think about things that were going on, they're coming to blackrock, both for how can we expand our platform? we announced a few weeks ago our microsoft mgx -- >> right. september 17, which was breakthrough. >> and you know, it's about blackrock helping and playing a role. that also explains the industrial logic of why we did g.i.p. >> which you just closed, adding another $116 billion in assets that's not part of the -- >> not part of the number, no. >> i want to talk private credit because you just brought it up in your initial remarks here. you know, right now, it's been a place where institutional money has largely played and/or -- i mean, insurers, you know the asset base there. blackrock is known for bringing these things to the masses. is there and are there going to be products where obviously you can't offer the daily liquidity,

but where you can get an audience similar to what you've done on the etf front for -- >> or bitcoin. >> or bitcoin. and how is that going to evolve? i spent a lot of time here talking about the growth of private credit, because it's so important. >> david, i think it's about creating analytics and data in that sector to help investors understand it so we can compare and contrast public and private. obviously, through that, we broaden the market, and through broadening the market, we create more liquidity. >> almost makes it like a public market in a sense. >> it should be. i think about it. many in my early days, before blackrock, we created the mortgage-backed securities market. nobody wanted to see or hear from me, but each day, we tried to grow something that was very illiquid to something that became one of the largest liquid markets in our capital market. i think this is the evolution of the capital markets. i will tell you, i have more conversations with governments

and heads of state about how can we replicate the power of america's capital markets? i mean, we're the envy of the world because of the breadth and depth of having a strong banking system. you know, we have the strongest banks in the world like jpmorgan and wells, and we have the strongest capital markets. >> right. >> and we're able to ebb and weave around that. whereas in most places of the world, you have maybe a strong banking system and a very weak capital markets, and so if there's a problem there, you don't have that offset. >> but larry, i feel like we spend all our time here talking about the public equity markets, which you haven't even mentioned, and you know mark rhone and i sat down a few weeks ago. 4,000 public companies versus 8,000 a few years. the fact that, i don't know, 35, 40% of the s&p is basically seven companies. what about the public equity markets? they suffer while these private markets grow? >> no, i think -- well, look at the capitalization of our public markets. they're certainly not suffering.

they're actually growing. i think what -- i'm not frightened of this 4,000 versus 8,000, because i think what we're witnessing is scale brings on more scale. i think if you think of the -- and think of the power of what a.i. is going to do and how it's going to transform. i mean, right now, if you think about venture capital, a.i., right now, appears to be the domain of the five hyperscalers plus nvidia. it is not the domain of venture capital. so, we're witnessing a transforms of scaling. scaling becomes, you're able to keep costs down. you're able to expand. so, i -- i'm not worried about only having 4,000 companies, because the reality is we have some of the greatest companies in the world that are expanding and then providing more services and more things. when i think about, you know, the power of, let's say, chubb, as an insurance company, i mean, what they have done in expanding

their presence globally, and so, you know, i think that's what the whole m&a market is about. it's bringing these companies together, and the successful integrated companies are the ones that are benefitting, and we have a stronger capital markets with fewer public companies. i don't look at that as a problem. i look at that as a plus. at the same time, we will see, as more and more private companies have more and more access to private capital -- >> they're never going to go public. >> i would say the opposite. one day, they are going to go public, because they're going to want to expand the ownership beyond the few. that's what blackrock did 25 years ago. we only had, you know, a number of partners, and when we went -- we did our ipo, everybody got shares. all the leaders of the firm. so, i don't see that as an outcome. i see this as a natural evolution. i think what we are seeing, though, because you do have access in the short run, you are

delaying when you go public, but the reality is, when you go public, you're a larger cap company. >> yeah. >> and so what we're witnessing now, and these -- these -- when bl blackrock did its ipo, our market cap was $1 billion. i think it was $980 million, to be specific. and now, what are we, $145 billion or whatever it is. >> so, that's a great point, and it's got talked about a lot this week, this delaying effect. but are you then arguing that the ipo market long-term gets more stable? new issues are more -- more stable, and hence, i don't know, less risky? >> well, i don't think ipos are that isky, depending on the companies that are coming. i don't think there's a less risky time or a more ebullient time. i think the quality of the company going public will determine that. but i do believe there's -- you're going to see great private companies that are going to want to go public and expand. it's hard as a private company

to do m&a, and if you believe that your moat can get larger, you can expand globally, you're going to go public in doing that. i believe the way we've used our public equity, i mean, you know, back in 2004, before we started expanding through organic opportunities, we were a bond manager, and we took that to expand. we expanded globally, and then bgi, but even all these different transactions and now prekwen and g.i.p. so all of these are just a part of it. but i mean, think about what we did. we added $2 trillion organically over the last five years. $2 trillion is the equivalent of being the sixth largest asset manager. that was organic over the last five years. and so, i think if the breadth and depth of what we're building in terms of whether it's active flows or etf flows, private markets, public markets, digital

products, and on and on, and so -- and i'm very pleased with how we are doing this and the breadth of our growth. >> now, i do want to talk -- we all agree capital markets largely going to replace the banking market, but i want to worry about something else. i see the justice department going after google, one of the finest companies in the world. they're going after apple. ftc going after amazon. is the government a force of good or bad here? >> i'm not in agreement with the government. they may have more knowledge than i do, but at the same time, we say that we are -- have a competitive advantage right now against china, and you know, the key is about our relative strength in technology, and it seems odd, at the same time we're becoming more and more dependent on our technologies, and we're now talking about breaking up these technology companies?

it doesn't feel consistent to me. but i don't know the intricacies that the justice department is looking at. but you know -- >> theoretically. >> and importantly, though, breaking up a company may not be a good or bad outcome. you've seen that. if you own all the break-up of at&t, you would have done really well over time. >> standard oil. >> there are many examples of that, but i like the u.s. position in technology, and it seems odd that we are now questioning the scale of these companies. these companies actually are going to get quite a bit larger. we're working with them through our new partnership, we're working with jensen. we're working with all these companies right now, and our -- the u.s. moat is getting larger and better, and we have a huge opportunity to be there. and the question is, are we going to be the country that distributes and did iffuses a.i

technology. it's not the company that creates the technology, but the net winner is the country that diffuses the technology and to me, we want our strong technology companies and that's why blackrock wants to be there, help them financing this. this one activity in datacenters. datacenters are a great investment for pension funds and insurance companies. they're going to throw off a low-teen return. that's actually a bad investment when you're trading at a 26 or 30 or 35 pe. and you know, you can see they have a lot of asset -- lot of free cash flow, 70 or $80 billion of free cash flow, but it's much better for them to be buying back their shares or finding and developing a competitive chip to nvidia or whatever that may be. but that's a great example where capital markets can help these companies grow larger and take advantage of these opportunities. and as i said before, i think we're going to have the dawning

of a new horizon related to infrastructure, you know, and i think this is going to be one of the great opportunities over the years. >> you mentioned the capital markets. we have an election coming up. the capital markets being a strength of the u.s. we have an election coming up, both candidates putting out plans. on one side, i think, trump, tax cuts for everybody, potentially ballooning the deficit, some estimates say to as much as $15 trillion over a 10-year period. the vice president's plan, different, but also potentially not good for the deficit as well. how do you think about it from your perspective as the largest asset manager? >> i wrote about this in an editorial. i think our deficits are going to hurt us one day. let's put the perspective now. at the end of 1999, we had an $8 trillion deficit after 220 years as a country. $8 trillion. and today, we're close to $37 trillion.

we added, you know, close to $29 trillion in 24 years. this is at an unsustainable pace, and if we are going to continue to be doing this, i think we're -- we are really mortgaging our future for so many of -- so many parts of our economy. and how that plays out, it plays out when the financing of this deficit becomes so large, it crowds out the private sector. as you know, we then will have elevated interest rates higher than we could actually afford in any one economy. and so, i have, in my editorial, and in my conversations with both candidates, we need to talk about growth, how to build growth, work with the private sector. one of the oddities in america today, the i.r.a., which was about 98% voted for by representatives of blue states, and yet, 90% of all i.r.a. projects are in red states.

what does that tell you? it tells you that some of these -- some states have the ability to accelerate permitting so you can get things in the ground and you can invest money in it. and i think this is a wake-up call for everybody, for every leader in government. we need to unlock growth. i was in germany and italy, seeing the representatives of those two countries last week. my conversation was about growth. >> sheinbaum? you met her? >> i'm going to see her in november. i'm going to be in the uk on sunday night and see the government about growth in the uk. politicians should not be focusing on raising taxes, lowering taxes. they need to be spending time, how do we grow the economy for more, and the united states has sustained these deficits. how do we get a 3% gdp for the next rolling 20 years? if we have that, i don't worry about the deficits. >> young people.

message to them about investing right now. >> look, the more you could put away, and i know it's hard, the compounding of returns will allow you to have, you know, a retirement with dignity. i saw an amazing company, actually, in germany, one of the neatest companies that are focusing on retirement. that's all they focus on. and they already have about $80 billion under advice, and it's all about helping gen x people understand the power of compounding, and gen x about how should they be putting money to work early in age. and in most cases, this is excess savings or they work for small companies that don't have a plan, and they're doing it, you know, like we do there. we need to be educating more on the power of this, and you know, it is -- it is imperative now that we make sure that these new

generations of young people, that they're focusing on this long-term goal. you know, and i think this is going to be important, and this is what we -- why i have been advocating, we need to have a conversation about deficits, but we also need to have a conversation about retirement. and the sooner we can have a literate, educated conversation about retirement, we can fix it. but if we're going to deny the conversation about retirement, and preparedness for retirement, we're going to have a bigger and bigger problem, like our deficits are in this country today. >> rigorous optimist larry fink, the chairman and ceo of blackrock, the greatest aggregator of money in the world, thanks for coming on. as we go to break, take a look at bonds today. we get quite a bit of fed speak again. we got ppi under our belts, and of course, umich at the top of the hour. don't go anywhere.

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it's time for stop trading. >> the tent today with two sales of the bank of america and is now under 10% so he sold and i think you never seem to want to buy anything that is selling. but now we don't know look at the stock starting to do well. this could be a very exciting stock for 2025. >> interesting. tuesday will bring us goldman city and beyond. >> this is upsetting it's just like the baseball season. nevermind. it is so exciting and i think

larry fink's message which is the best, let a compound, keep it in. >> but think more broadly than just stocks? >> david asked key question of can we get into infrastructure? not yet. >> the products will be developed that allow the broader product -- public to participate in it will be important and i like to wonder what that means for public and private. >> you can get a good return by being in the infrastructure and i always tried to get it. he was the first got to do crypto and i said how can you do this and he said i changed my mind. >> we will see you letter -- later. when we come back a former tesla executive withhas sre down almost 9%. don't go away. easy-to-use tools and paper trading to help sharpen your skills,

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good friday morning and welcome to another hour of squawk on the street. we are live is always from the new york stock exchange s&p is up to 10 to 1% as earnings season kicks off, industrials, materials and some stocks are doing well with energy in the mix as well. consumer discretionary is weaker and tesla selloff is a big part of the story you are seeing the nasdaq slightly slower still tracking for a gain of a little more than 0.6% for the s&p 500 with almost three quarters of a %. treasury has been higher yield especially in the back end of the curve. it sits just below the 4.1 and the 2-tier yield continues to hover below 4%. we are 30 minutes into the trading session and hear our movers j.p. morgan and wells fargo kickoff earnings and the shares are

moving higher we will see what the street likes about the results in a moment. tesla there were stock in s&p after the highly anticipated rubber tax events failed to deliver and it was light on key details. morgan stanley wrote, that's it? more on the red head later this hour . a&d launching this hour to the blackwell chip but shares saw 4% and that stocks on pace for the first week and a month. >> markets, not the opening highs. >> we have october preliminary and expecting headline number to be around 71 and it comes in light. 68.9 and that is the weakest level of the headline sentiment going back to just august of this year but what is fascinating as last month at 70.1 that is worse since april

24 so we are going in the wrong direction and in terms of current conditions, 62.7. that is less than expectations, the lightest since august and that was the best since last month a 63.3 expectations, 72.9 also deficient in terms of expectations. sits below 74.4 72.9 would be the weakest level going back to august. but last month, strongest since april. we are really turning around a little bit now let's look at the inflation expectations based on the surveys. 2.9% on one year. that is coming off a 2.7 and that was the lowest since december 2020 going back to 2.9 in july, 3% in june is your comp and finally the five and 10 year inflation, 3% is expected. 3% is what we ended up with and it follows 3.1, the highest since november 23 it's nice that is going back the

other way we have had a lot of 3% readings. to find a lower when you go back to march of this year interest rates did not move much on those but maybe they will. i do think the expectations on the one year is a bit hotter but the lighter confidence is probably going to keep the rates from moving dramatically higher and to keep in mind the yields have been leading the way with a higher rate, today at a10 and 411 was the high yesterday and we might break a streak. to break that we need to see or 12 and beyond. the other piece of data we got today was whole sam place in, ppi it is another benign report. if you look at headlines, flat, better-than- expected and also better than what we thought the month before. if you look at the court ppis to strip out food and energy and matched expectations of a

0.2% gain. the wholesale inflation continues to be services, part of the economy and not the goods. that has been disinflation mary. pretty benign update and we did not see much of a reaction overall policy expectations at this point which is 25 basis point cut in early november however, the atlanta fed president making some news and was the first to put the idea out there about applause. he says i have been saying we should expect the data to be what i'm using to bounce around a bit. the choppiness is along the lines of maybe we should take a pause and i'm definitely open to that we have the ability to be patient and let things play out a little bit longer right now the market is pricing in at 20% of the cut in november. it is not zero and it is a possibility that we will see the data continue to come in strong. they are going to go 25 basis

points, cut and keep at it. even though, we have been following the bank conference calls and so far the consumer commentary has actually been strong and quite bullish . here's what the j.p. morgan said. >> we are pretty much in the trough right now as we speak. when you look at yield seeking behavior that has come down quite a bit and that is no longer as much of a headwind. when you look at checking account balances, those have been for some time as we see an indication of the cash buffers and that is supportive for consumer deposit balances. >> wells fargo here's a chart of the wells fargo debit card purchase volume and transaction and it looks stable we will talk to the cfo in the next

hour but what they see from the consumer. if you look at the volumes and transactions, it looks okay. >> it does and it is worth pointing out that the viewers saw j.p. morgan stock that has had a nice move and obviously some positive things as you take a look at the macro picture on consumer spending. both wells and che pmr up sharply now, responding to what were good numbers and also j.p. morgan comments with some expenses and we will have more on that later. >> we will get an update on the conference call that on what we heard on the commentary from the cl donald's warning about 2025, not so hot and he said we are starting to talk about 2025 and the message to our teams has been, we need to be preparing for another challenging year that got the five dollar value menu so consumers are not monolith so

if you really do cater to low income consumer than the value seeking consumer, it is a different picture than what were getting from some of the data overall which is why the and it ducks are so important and the fed pays close attention. >> after years of increasing companies are rolling back prices talking about ikea cutting global prices 10% this year. the biggest annual price decrease in the history of ikea. they point to other companies, mercedes-benz, mw, pepsi, delta, talking about we are getting more professional -- promotional. >> it's also good news on the inflation side that we are going to see prices decline all the way. the last piece of consumer data i wanted to share, we do and retail monitor, cnbc with the national retail federation and it looks like for the month, spending was down. if we take

out auto and gas, spending was down .3% for the month after a half-point gain in august so we saw deterioration in spending behavior in september. if you take out restaurants which is a strong part of it and you look at the core retail, similar, .3% decline and .9% year-over- year gain. it was pretty broad in terms of where the declines were, furnishings, building and garden supplies, gas stations, all negative reads on the month . preview to what we might get next week for retail sales. >> this might be an all-time high the s&p of 5803 as we keep track of what would be the 45th record and financials also a high on the back of the earnings as sarah and david have been talking about from the big banks . j.p. morgan does lead for profit and wells saw profit fall 11% and revenue was a missed the capital markets head of

financial research joins us to talk about the numbers. what do you think? >> it has been quite good as you see from the stock price reaction for wells fargo and j.p. morgan. i think many of the short-term traders were positioned to see weaker numbers from j.p. morgan. there might be short covering going on to drive the value up. when we take a look and you have been talking about the behavior of the consumer. j.p. morgan chase and i want to remind you probably spoke the strongest about the consumer and the behavior of the consumer in spending and that is a positive for the economy. overall, credit quality is good for both companies. capital is very strong. some incidentals on income that varies from quarter to quarter but the initial read on the numbers are good. >> sounds like diamond got a little annoyed about the questions about the school 25

and i think you know what i'm referring to next time you just give him the number, i don't want to spend all my time on these calls guessing what it will be next year. >> i thought at the time the movie with jack nicholson where he plays a journalist and he says he can handle the truth and that was the j.p. diamond moment and it will be probably less than 87 billion for next year. he got frustrated over that and wanted to talk more about longer-term strategy. j.p. morgan is the quintessential best bank, big bank in probably not only this country but the world and have done an excellent job. >> you had daniel pinto a number of weeks ago resetting expectations a little bit. just bring us into sort of where things stand and given what he was saying about net interest and capital markets activity and whatever that was

six weeks ago. >> he loves the guidance or gave indications of the net interest income levels which at the time that the street had him at $90 billion which were two high. they were talking about 87 billion would be high for next year and we will find out in january the actual number. i think the market looking through that because you're also seeing growth in fee revenues and credit quality is strong. in particular, the investment banking numbers are really stronger than expected and they pointed out that the dcm activity following the rate cut was quite strong. so cb and goldman where they report next week will probably have better-than-expected numbers but it's also a good read into 25 if the fed continues with the rate cuts because that leads to stronger

investment banking. >> that's a good point. and as for wells, carl mentioned not being across the board but the stock reacting quite positively so the possibility of the asset cap being removed very soon, what do you attribute to this? >> you put your finger right you

the response from wall street after tesla's event and what is left for tesla from here. the company call getting

underway and we will give you headlines as financials overall are hitting new all-time highs. in the market as well, s&p at all-time highs as we celebrate the two-year anniversary of the bull market this weekend and in that time the s&p is up 60%.

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version of its long-awaited robo taxi but investors not impressed with stocks down 7.5% , the worst performer in the s&p 500 there was a lot of excitement. now we have more on how the event failed to impress. >> plenty of buzz but did not deliver and it did not deliver because what did we say over the last couple of weeks? we need details. wall street wants details or the stock will go under pressure and there will -- were very few details there were broad strokes when it comes to the rubber taxi and in terms of razzle-dazzle, elon musk and tesla put on a show when he drove out in the robo taxi at the event which was held at the warner bros. lot in hollywood at two seat vehicle and they will be rolling this vehicle out and he says, there he is and by 27 they expect to go into production and the cost under

$30,000. next year the company plans to start offering fully autonomous rights in california and texas here is elon musk talking about his vision for the future. >> we will move from supervised self driving to unsupervised self driving where you could fall asleep and wake up at your destination. >> with did the analysts have to say once said that's it, disappointing lack of detail. and at bernstein, overall we found that robo taxi event to be underwhelming and stunningly absent on detail and then by wells fargo, mostly razzle- dazzle but little substance and again as you take a look at shares of tesla, be a thomas rights when they start offering them which he says they will next year will be in california and texas and do not be surprised if they are in a geo- fenced area and we also want to show you shares of uber they

had been under some question about whether or not the company's business model would be threatened in stock is up 8% because people looked at the event and said, uber is not going anywhere and if anything it will probably benefit not only from the lack of immediate rollout but we could see tesla's being used as part of the uber app. >> he did say they would sell for less than $30,000 and that was one of the few details that people were looking for. >> yes, he did when they go into production at 27. take him at his word and he said he could get them on sale for under $30,000 and that would be an important inflection point in terms of the cost but one thing we did not hear that a lot of people really wanted to hear is what about a lower-priced model that would go into production early next year and a traditional one

with steering wheel that you would drive. we were expecting to hear something about that and maybe we will on october 23 when they report their q3 results but there was no mention of that last night. >> they do like their robots and that seems to be one bright spot i don't know how much you focused on that. >> i have read the analysts notes and they believe that the market could be enormous in terms of people who would want a robot. it is hard to know how many people right now would say, sure, i'm ready to spend $20,000 on a humanoid robot. they could do various tasks. but i should point out that the analysts notes, almost all of them have said the same thing which is the advancement in what you see and what you interact with in terms of the optimist bought is substantial. there has been improvement that is noticeable and the question

is can they continue to improve and at what point do you monetize it if you're tesla and at what price and really what is the market. 20,000 is a lot of money for someone this is i want a robot assistance. >> i do sit -- see them pouring drinks and i wonder if they can do childcare? it's coming. our next guest ran the tesla global business and software is not yet ready for thomas driving he served as an executive or tesla and is on the board with gm. not unimportant competitor let's start off and give me your reviews and what you're doing now in terms of the presentation yesterday and what did you think? >> the vision of us getting 11

hours back a week is a great vision and that's why people have been working on this problem for more than a decade because americans spend 11 hours a week in their car and you would get all that time back and that is almost a full day, workday plus and to get a bunch of safety benefits. in terms of the presentation, i think the headline for me was, hardware is easy and software is hard it is relatively straightforward to put a prototype vehicle out and show the potential hardware. the software and data gathering is where the rubber meets the road. in this challenge. in this case, 22 million driverless miles in the cruise is 5 million driverless miles and tesla has zero. there is a lot of catch-up to do the detail is not only affecting tesla stock but it is helping uber and lyft. some

people were potentially shorting that uncovering their shorts this morning because they saw they would be -- not be under the pressure they thought they were >> they are using generative a.i. and you mentioned driverless miles but many come back to the date of the tesla has from the driver miles they have been able to monitor for these years. >> the data is important, driverless and driven, clearly. the key measure in business is how many miles the car can go before a human has to take over. and it is a measure of how good the software is. right now they are thousands of miles between human intervention so they just go. tesla is between 12 and 14 miles and that is with the latest release of self driving unsupervised. they have got several orders of magnitude to catch up.

and they are not sitting still but are adding miles every day and this will be a really interesting competitive landscape to watch evolve and there is a lot of ground for tesla to make up. >> two -- two what do you attribute the difference? they have gone different path in terms of the technology and why are they lacking at least in your opinion? >> it is a couple of things and one is this has been the primary problem that they focus on every day. when you focused technical teams on one problem then you tend to get really rapid advancement and tesla has a lot of things it's focused on. i think waymo cruise and tesla are using generative a.i. models.

the crews and weigh mother have been in the space and executing driverless miles they also have a bunch of what a lot of people call tail use cases, rare events that happen and they've got models that cover it and it doesn't cover all the tail use cases. those are important because the public is concerned about safety so you have to cover those rare use cases and i think that is going to be a challenge for everyone in this space but that is where the driverless miles come in very beneficial to helping these systems understand things they see every once in a while. >> what about the criticism around the lack of details and what phil said about how realistic the target is for under $30,000 car and the fact that there was some disappointment about highly anticipated more affordable model too that has raised concerns as well? >> i think the pricing is

realistic the chevy bolt even the new version retailed for under $30,000 so it is where the mass-market is and that is where the auto industry is moving rapidly and it's what ford is focused on also. it is important for tesla to have a vehicle in that price category and i understand why investors were disappointed not to hear the story because the mass-market volumes are between $20,000 and $35,000. that is where you really need to be priced and profitably to really make a go in evs and in the future, a thomas vehicles. >> let's end with the company and in terms of the overall demand for ev, an interesting year hearing different things about whether it's waning or not and the demand is changing and from your seat what you believe is the case and bring

in the chinese competitors that are performing so well in markets that are not the u.s.? >> i think right now if you have really good ev product, it's moving and you saw the latest quarter, gm numbers were up over 60% and have left from really nowhere in the ev now up to number 2. they are now chasing tesla's market share and it is largely because never really get product from equinox to the blazer to the silverado. they are in high demand because they've got great specs, great range and they are fun cars to drive. i think we are going to continue to see evs increase. it's not a matter of when or if we will get to a market that is dominated by evs but when in china today, i was just in shanghai a few weeks ago and

the super majority of cars are evs and it is amazing to see. there are hundreds of chinese brands and they are cost competitive and really gaining market share in markets outside of china, mainly south america, middle east and africa and are coming into europe. >> we appreciate the time and look forward to having you on again soon. >> to see you u.s. election could be the next catalyst for things like quinn basin robinhood alongside crypto calling the win performer president trump, he cptble for the second new #wreryo is flowing and it might surprise you. stay with us.

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welcome back. i have your news update. the united nations in lebanon said two of the members were hurt following two explosions near a watchtower the development came a day after the peacekeeper said an israeli tank directly fired at the

headquarters. the israeli military says it is conducting a thorough review. one person died last night when an elevator trolley malfunctioned under town and a gold mine tourist attraction in colorado the nearly 2 dozen others from the tour group were trapped 500 feet below for six hours before they were rescued authorities say they are launching an investigation to find out what caused the issue. a group of survivors of the u.s. atomic bombings in hiroshima and norma saki one the peace prize. next year will mark the 80th anniversary of the atomic bombings and the group members have used their personal first- hand account of the blast to create educational campaigns against the weapons. s&p 58.15 as we watch all- time highs and one key part is

the rise of crypto super pacs and the impact they're making on both sides of the aisle. >> the crypto super pacs which are out raising the big banks and oil cycle are starting to warm up to democratic presidential nominee, kamala harris. in a filing this week shows the ripple labs cofounder donated one main dollars to the future forward super pack and that committee supporting the vp run for the white house and accepting donations in digital tokens back in september and they have been given a total of $1.9 million to support the campaign ripple is also one of multiple crypto firms fighting the sec chair. the decentralized exchange battling claims that it violated u.s. securities laws and has also given money to the harris action fund skybridge capital representative said he is a group of advocates to work with harris to develop her policies

and has given to tupac supporting the democratic nominee then there is the bet venture capitalist who maintains a sizable portfolio crypto companies the cofounder and his partner said in july that they were planning to make significant donations to pacs supporting donald trump's run for president the last week he said he would be donating to the vice president's election bid as a sign that they are starting to get behind harris. >> thank you. up next s&p 500 hitting all- time highs as we speak and tomorrow marks the two-year anniversary of the bull market with the s&p market up 60% since the ear market low of epringr 2022 and should you ke wti this rally and how should investors situate their for he is from here?

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the dow and s&p 500 made new highs tomorrow marks the two-year anniversary of the bull market with the s&p up more than 60% since that time with tech leading the charge with 120% since october 2022 bear market lows. does the rally still have lakes from here? the chief market strategist and cnbc contributor is here. i guess if you mix in a.i. revolution with soft landing and now a pivot from the fed toward cutting rates, that equals a pretty nice rally but does it continue? >> it all looks really good and the inflation gain as well. people were a little disappointed but let's just think about the last two years in the summer of 2022, we were peaking at 9.1 % and we just got 2.4.

we have come a long way and have gotten -- done an amazing job of getting the disinflation into the system and we've done that above potential court in almost every quarter for 9/4 now. is really a remarkable story and kudos to the fed for achieving it. >> what does the path look like from here and will they be able to continue the good news story? >> we will learn a lot in a little under 30 days with how things will move with the election we will be on the edge of our seats for that. just seeing whether we will go more deregulation mode for the economy with the trump win or a continuation of what we have seen with biden/harris. the stories to reasonably positive and more positive for equities under trump that under trump we get a little bit of a stickiness on the rate side is the rate side will not come down as fast but all in all, i

think we will probably have to get through that part of the equation in the next month and then we can talk about how fast the fed goes to something like the mid-threes and then debate whether that is neutral or neutral is where we were back in 2018 which is what i been talk with my clients about. >> what about what happens with the bond market and especially with the steepening and the higher yields on the long end of the curve and the deficit worries of both candidates of what's happening already under this administration. at some point is a common issue for the equity market? >> i don't think so. i think a healthy inflation risk premium could be good for this market. we went a long time with driving the term premiums weighed down and in 2019 we had a flat with two points that -- 2%. i think it is healthier and we had this experience with inflation.

it was novel for some people to see such high inflation and the fed controlled it but maybe that keeps a little more balance in the curve so we don't have this serious -- the expungement of risk premiums that are traditionally associated with inflation up until 2019. i think the 10 year could be stickier in the short end is probably -- and the belly is where you will get most of the moves with the fed. i do think probably by and large the rates are coming lower across the curve. >> more near-term, couple weeks ago we could not get anyone on the show to say the fed might hold and then maybe skip a meeting. now bostic is saying it out loud and is it a real possibility? >> if it's going to happen then it's going to happen because they are is really good news and it will be that the economy is very strong and mighty because inflation takes up that will be higher nominal growth which is supportive for equities along as we are not losing the angering of long

running inflation. i don't think the equity market is really going to have a problem with it. we had six or seven rate cuts at the beginning of the year and only got a 50 so far. we don't need the rate cuts to get the equity markets. that has been a big theme of ours for a long time. if there is good news and they are slower to get the 3.5 then we could get the next one. >> it is good news and i put this tossed in yesterday who accused me of cherry picking the data but mostly it has been good news. >> i agree and i think it has generally been good news on the forward look. where we have come from, one of the reasons consumers are unhappy is that we have had a 21% cumulative rhyme the cpi -- rise in the cpi the past has

this ugliness to it and i think a lot of consumers are still hurting from that. but the forward look which is really what we care about the policy looks pretty good. i think the fed withstood the high inflation expectations and they did their job. there is still message of unsettled behavior, unsettled feelings in the consumer side because what they saw on inflation and it could affect things like the long end of the curve because it brings back inflation risk premiums to investors. but i think the news is generally positive and -- i think the equity market agrees with us on that. people have been calling for a recession for two years. >> you don't hear that much anymore. as we speak record highs up 6/10 of a % with the s&p.

thank you. reducing mistaken bfa below 10% after selling spree that began in july according to a filing last night to disclose the sale of more than nine and half million shares and they now and 775 million or stake of under 10%. berkshire is no longer required to report its transactions of the stock in a timely manner. shares with earnings coming on tuesday and after this wells and their conference call underway this hour. stay with us

the s&p 500 just hit its 45th record high of the year and now the nasdaq is a couple % away from its new high watermark but don't let the market action catch you offguard one trader thinks having a downside is the right move. turn -- to find out how two men

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wells fargo shares are higher almost 6% this after the earnings call wrapped at this hour let's go over to leslie who has been following all the bank earnings, j.p. morgan and wells fargo. >> the call is so actually ongoing for a little bit longer. investors are looking for a miss on the interest income in the quarter, the profitability for line making because guidance was stable. the cfo set on the earnings call that they are close to the trough on an a.i. and the idea of the trough was the first question asked on the call to which the cfo replied, will be a big factor. so far they've largely been behaving as they thought. then there was a follow-up question about the outlook for loan demand. >> i think the 50-basis-point reduction helpful but not a

factor that will drive people to borrow or not. i think they'll need to see that come down more meaningfully if that's the driving force. the uncertainty around the election, the uncertainty around the macro, you know, back drop, i think as people get more confident that the baseline case of a soft landing will materialize, you get past the election, you see rates come down a little bit, i think all those things, you know, will come together and help give clients more confidence about either building inventories or making further capital, expenditures that they're holding off on now. >> saying there should be more visibility towards the end of the year. nii was also breathlessly discussed on the jpmorgan call a little earlier as analysts sought more visibility into 2025, but management reiterated, there is still a lot of uncertainty to be factored in. >> gets you nii next year.

can i also point out that nii, all things being equal, is a number, but all things are never equal. and the yield curve, you have a recession it will be different when you have continued growth. >> management there said the current market consensus for nii ex-markets is $87 billion for 2025, which they think is closer to their internal expectations, but maybe, quote, still a little bit toppy. sara? >> sounds like he's sick of getting the question. >> i think so. >> thank you, leslie. we'll talk more about it with wells fargo cfo who will join us ni mha ey movers,"icel sa santomassimo.

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to fight back on what they call a campaign against diversity and inclusion in corporate america. one ceo is taking the issue from d.c. to wall street. brandon gomez joins us on set with the full story. >> yeah, sara, it's a very interesting story.

the hispanic association of corporate responsibility leading the charge hit the road four weeks ago, walking over 240 miles from capitol hill and ending their march today, here at the new york stock exchange. now, they hit eight cities along the way, including baltimore, philadelphia, trenton and newark, partnered with the national urban league, the human rights campaign and others. why? well, they're making the business case for diversity and inclusion, offering support to local businesses and workers. each stop highlighting specific challenges and opportunities in that city. now, i spoke with ceo about what he heard from leaders along the way. >> a lot of companies and a lot of institutions want to do the right thing in terms of diversity, equity and inclusion. it doesn't take rocket science to know that our country is becoming more multicultural. we know that groups, particularly latinos, that continue to grow were almost 20% of the u.s. population, but you're also seeing between

latinos, lgbtq, people with disabilities, even though we're growing, our representation in corporate america continues to lag. >> this, of course, comes as companies are under fire for internal d.e.i. practices, tractor supply, ford, toyota to name a few. i asked about what macro concerns he's heard on the ground during the tour. no surprise, rather, election, rates, but also legal hurdles facing d.e.i., concern that precedent was set last year on the scotus and that could fuel pushback against private entities going forward. >> it's looking different, the whole notion of d.e.i. >> there's still fear it could continue to grow momentum. >> thanks. p r.hat does it for this hour s&atecord highs.

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