taiwan semiconductor said. let's look another treasurys after the data that we got earlier this morning. the ten-year is at 4.06%. the two-year's at 3.98%, so both of those yields ticking up slightly from where we were before the data and earlier this morning. and the dollar, at this point -- oh, sorry, first oil. oil's been down significantly. if you were looking at a weak chart, you'd see it's down by more than 6%. closed yesterday at the lowest level we've seen in about two and a half weeks, and again, that comes on thoughts that israel will not be attacking iran's oil facilities at this point. you can see the dollar this morning, right now, across the board with what you're looking at, mixed picture. right now, it's time for "squawk on the street." ♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla

with jim cramer, david faber at post nine of the new york stock exchange. stocks going to flirt with all-time highs as retail sales comes in best since march. taiwan semi ups guidance, reignites the a.i. trade, and jobless claims fall by the most in three months. got the ten-year, 4.07%. our road map begins with these records on a roll. the s&p is within striking distance of a new high, and the dow set to extend its rally. plus we are watching the chips. taiwan semi is bullish on its outlook, particularly because of the a.i. boom, which it says is real and profitable. higher medical costs continue to batter many health insurers. the latest, elevance health, reports unprecedented medicaid challenges. let's get to the markets and this continued record run here, jim, as we look for 47 all-time highs this year. what's the bigger story, taiwan semi or retail? >> i got up for taiwan semi, so

i'll start with that. come out in the middle of the night and refute everything from asml. that was a pathetic conference call from asml, and this was the exact opposite. there comments that are just extraordinary. i'm going right to the top. wai says, our customers' demand far exceeds our ability to supply. there it is. nvidia. so, you have nvidia, which is going to be the world's largest company soon, blowing out the numbers. obviously, they're all agreeing that a.i. is incredibly strong. the rest is not that strong. david, what i can tell you -- >> not enough to even increase capacity twofold, it said. >> they can't. what i can tell you is that given the fact that nvidia has become the bellwether, you're not going to be able to beat the verification away from jensen. unless you look at taiwan semi. so, i just think that you can get up, you can see the stuff,

and then look at the reaction. when you have the semis going after yesterday's shortfall because of asml, and then i'm going to add -- i'm going to add blackstone. >> okay. >> finance? >> yeah. >> tech. >> yeah. >> those are the leaders of this retail. >> don't forget industrials. all-time high on a cap and equal weight. >> we haven't even heard from them yet, they're going up. so far, this amazing earnings season. i got -- if i have tech and i have banks, what do i need? what do i have to have? utilities for the leader yesterday. get that. but that's nuke. >> that's the nuclear. >> yes, the nuclear. you always said it was going to come back. >> i always said that. i did for years. we wanted it to. >> i'm not kidding. how many times have we sat here and said, it's the cleanest, can't believe we abandoned it? >> years. when it comes to addressing carbon, of course, because for years, nuclear was not included. it's like, it's solar, it's wind. like, really? >> i know. >> back to asml, back to tsmc,

because that's certainly a driving force in the market. i mean, jim, obviously, you hit it right on there. >> thank you. >> amd, nvidia were down a couple days ago in part because of the asml warning, even when they said it wasn't a.i. related. a lot of people didn't believe them because the guide down was so big. they're like, i don't know what's going on there at asml, and then it's followed by this huge number from tsmc, as you pointed out, and the chips are more expensive, so the arch selling price goes up for tsmc, because the margin, it's just a bigger number. >> so right. and i did love the fact that what they basically did -- they actually reiterated what jensen said, which is there's insane demand, and you'll see amd -- now, they do -- they work at taiwan semi. marvell tech, where the ceo bought a million dollars worth of stock, carl, just last week. that is taiwan semi. so, you have this weird -- i mean, we never used to think

that we would have to get up in the middle of the night for taiwan semi. we get up for nestles, which reported a terrible number. you come back and say, look, a.i. is real, and that's really the theme of taiwan semi. there's this moment right now where we're thinking, you know, cereal companies are a.i. no. but this was a verification of the big rally. >> but you don't think it's like earlier chapters this year where the entire market rested on a.i., on maga seven, on mega cap tech? >> agreed. i think that the s&p -- the equal weighted, the -- not the market weighted but the equal weighted was showing this was a rally of the 493 other stocks. now you've got this -- by the way, you have netflix, which is not mag seven, tonight, but what you -- you can make a mosaic, which just says, the rest of the market went up. russell 2000 going up. now, this side's coming back, and a lot of people have been saying to me, jim, if we lose tech, it doesn't matter what the other companies -- well, we're not losing tech.

>> right. meantime, you've got the nysad line, breadth getting better. >> this is two-year anniversary, and it's going out in just a blaze, in the new year, the third year, is starting stronger than these other years. david, i had this interview with charlie scharf from wells fargo. >> at 9:05. >> had to. i mentioned jensen. and what was amazing was the broad-based nature of the strength of this. people say, listen, the areas that are strong, nashville. nashville. areas as strong as middle of california. areas strong as all of georgia. we just -- it's not where we expect things to be strong. that's actually from prologis yesterday, the areas that are strong, and i just find -- i know we can't be -- it's almost panglossian, and i don't want to go there, but i think we are at

a moment where the fed's going our way, even with retail sales being where you would normally say, if we would say, do they have to tighten? >> on that point, then, i'd love to bring in john gray's voice, not his body, because he was on "squawk box" earlier. blackstone reported numbers. we can get to the blackstone numbers a bit later, but when we're talking rates, when we're talking economy, it was interesting listening to mr. gray discuss what they're seeing, and they have a very broad view, of course, given the diversity of portfolio companies at blackstone. that's the old private equity business, not to mention what they see in real estate, given they are the largest owner of real estate out there as well. but take a listen to what he said about inflation and how it's giving the fed some cover. >> we see inflation broadly cooling around the world. if you look in the u.s., what we see is we survey our companies, and in the third quarter, wage

growth dropped below 4%. that was the first time in the post-covid period we've seen that. when you look at rental housing across our large single-family, multi-family portfolios, we see those housing costs growing at less than 2% versus the 5% in the government cpi data. that's the biggest component of cpi, so i think the data gives the fed air cover. we're in the camp that the fed has room to lower rates. >> there it is. >> really well approximate us. >> that's why i wanted to use it. >> i think we're all struggling. is this a rate cut environment? the answer is, absolutely, it's a rate cut environment for exactly what jonathan gray said. i don't know, carl. i think without the rate cuts, what'd be looking at is things like elevance, reporting, saying medicaid is a problem for them. we would be looking for something like travelers initially was down a dollar and

a half before people realized the combined rates -- so, i think that we're putting a positive spin on everything that comes out that's even neutral. >> yeah. we've been keeping stock of cpis around the world this week. uk, 1.7. canada, 1.6. no surprise that the ecb cut two times in a row now. >> sometimes i think that china is a major reason why everybody's doing badly. >> aluminum's on pace for the worst week since july. >> incredible. >> oil can barely hold $70. >> csx -- you guys have csx on. >> we do. >> ask them about coal. coal is a great barometer. ask they m about steel. coal and steel, really not good. i love the air cover, jonathan gray. air cover. >> yeah, well -- >> yeah. >> fortuunfortunately, there's great deal of conflict going on in the world right now, so it's not the -- it's a phrase that's used often these days, but yes. >> on csx, joe is so good at

being honest about what cargos aren't good, and in the end, you come back and you say, wow, that part of the country's weak, and then you can say, well, it storms, but it doesn't matter. again, jay powell can point to anything that he wants to lower rates. the fact is that rates are high. they are high, and yet, we get data that makes it so, well, wait a second, rate cut but retail sales great, so i can buy, what, walmart, costco. you can buy these things. and of course, you can buy amazon because everyone thinks that amazon is having a bad quarter because the last time they reported, they mentioned that maybe sales could be down during the olympics. wow. that was a 186 going to 161, and now we're back. american express reports tomorrow. >> pepsi blamed snacking on the election, which david makes constant fun of. >> i cannot get past that one. sorry. >> nestle's -- mark snider was fired. >> alleviated?

he was relieved of his duties. >> but there again, pet food, good. everything else, weak. >> they lower their organic guide to two, which would be the worst of the century for a full year. >> isn't that incredible? and yet mars, private company, is doing quite well. but nestle's gives us air cover. i love the air cover thing. i got to use that. >> you already are. you used it like four times in the last two minutes. >> i adopted it immediately because i heard private credit -- private credit is like there used to be the show with groucho marx, the duck comes down and says, "private credit." >> it's like "the graduate." like plastics. >> you know what's back, though? aluminum, but not from this but from the idea that there's a short squeeze in aluminum. not real demand. >> i mean, i do like to point out, blackstone is almost a $200 billion market cap. it's bigger than goldman-sachs. it's bigger than morgan stanley. >> do you know -- did you see david solomon referencing some

of these firms? >> private credit is now a very large component, growing more quickly than other parts. blue owl, obviously. >> it's supposed to be, like, blue horseshoe. >> i got it, and that was funny, but blue owl, by the way, is $22 as well. that's created an enormous pamt of value. that came out of the old n neuberger berman. amazing. there's a guy named george walker who doesn't get a lot of credit for the value he's created as a result of taking that thing out of bankruptcy from lehman. >> blackstone was worth nothing and then -- what a revelation. >> private credit is enormous, and it's starting to feel things at blackstone. >> is it really music? it's 9:11. we're blowing this damn thing out because this is a seminal moment. >> we get to come back and talk more. we do. >> you got a show tonight. and really, you can come on all day if you want. >> i'll tell you, i like joe very much, and i'm going to do this show from a csx caboose.

oh, yeah. >> with a little hat? will you have the little hat on? >> you said mr. gray. i was immediately thinking about mrs. peacock, mr. green, professor plum and colonel mustard. >> or "reservoir dogs." plenty more movies to get to. we'll get to lucid taking a t. erhithe's travelers. more on meta today. at t. 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. i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform.

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doors lead us to new opportunities. your dedicated fidelity advisor... -surprise! -for you, mama. ...can help you open those doors. by proactively reviewing your entire portfolio. with an eye on taxes and risk. doors were meant to be opened. busy morning with retail sales, philly and claims. now let's get industrial production with rick santelli. >> hi, carl. indeed, a lot of important data points. industrial production for september expected to be down 0.2%. comes in a little bit more negative, down 0.3%. that's the weakest month over month change just since july, but you know, this is the fifth negative sign in front of industrial production this year. we know that manufacturing has been a bit of a blemish with

regard to the better than expected horsepower in the u.s. economy, and there's a negative revision to last month, up 0.8%, which was a good number, the second best number of the year. now becomes only up 0.3%. capacity utilization, also a miss. weakest since july at 77.5. and also in the rear view mirror, 78, which was pretty solid last month. that was the, what, second best reading of the year as well. that gets demoted to 77.8%. so, we see that interest rates, right before these reports, are making new high session yields in tens, touching 4.08%, up seven basis points on the day. two-year, of course, right after strong retail sales, flirting with that 4% level. we still have business inventories, association of home builders sentiment yet to come at the top of the hour. but suffice to say, retail sales put a little horsepower back in quk selling pushing rates up. "sawon the street" will

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lucid shares are tumbling in the premarket, the ev maker announcing a public offering of more than 262 million common shares and a warning of a wider

than expected q3 loss as it does try to wrestle, jim, with sluggish demand. >> yeah, i mean, the ev market is just awful, and yet, we're still putting up lots of battery factories. there's a big kind of pretend that it's going to come back. >> wait, wait, the ev market is not just awful. that's an overstatement. >> in our country. >> really? awful? >> i mean, it's -- august ev sales in germany were down 60%. >> look at ford. >> so, it is awful. >> in europe, it's worse because they got some of these subsidies expiring. >> i'm sorry, david. it's not as strong as i'd like it. how about that? >> i'm just questioning the use of the word, but if carl backs you up, then i back off. >> it's two against one. >> yeah. >> how about this report? >> but that's germany. what are the numbers here? >> that was the most ev country of ev countries. that's also vw, which is laying off people. vw doesn't play off people, for heaven's sake. >> lucid, by the way, we should point out, the private investment fund of saudi arabia. it's the -- it's the majority

owner. they're going to be buying some of this offering as well. this was a spac. you may recall, if you go back, i guess, four years now, whenever it was, we talked about it a lot. you see it there. that period of time when it soared. of course, it was churchill 4, i forget which number it was, coming out of the scichute ther but it's a capital intensive business. not easy. got to keep raising money. >> when peter took me into lucid, i was in the back, and at the end of it, he stopped really quickly, and i was concussed. >> that explains so much, jim. >> yes. i was concussed. that was before the protocol. i came right back. now, i would be out two weeks. >> how about this report out of bloomberg that apple had been working with byd for years on that now-canceled car project? >> and then, what surfaced was surface, the people officer leaving. all i can tell you is that if apple's doing so badly, what's it doing in a foot race, of

course, every day with nvidia for market? >> by the way, i think tsmc, back to our sort of lead story, also makes apple design chips as well. they produce apple-designed chips for the new a.i.-powered phone, which is going to need them, right? >> right, but remember, apple always -- they switch suppliers. you never know what they're going to do, which is why all those supplier stories that people have are always wrong. but apple, i think, is, you know, there's a lot of stuff that people are not -- away from the phone that they're working on that's kind of interesting, and they keep being counted out, and obviously, i would love to be counted out as much as apple's being counted out. yesterday was a ubs, ncis, whatever it is. >> evidence lab. >> evidence lab. ncis. i said, really? an ncis guy? >> like mark harmon? >> i said, do you work for ubs? >> he didn't know what you were talking about. >> no idea. it went over just like my joke with jensen huang. super funny.

laughing on the inside. >> we all do that with you a lot, jim >> don't tell me there's more music. is there any show? is there any show? a nasdaq company? i mean, no. no. we'll just, like, whatever. >> for jim's birthday, no breaks. how about that? >> oh my. >> that would be the best gift. >> and you and i will not talk at all, just let him go. >> why not? >> you can turn to me, but i won't say anything ever. >> do you know how good the jets have become? even though you had a loss last night. >> finally, we get to football. wait, the jets, davante adams has made them a better team? >> that's one of the greatest pick-ups ever. >> the two of them together is going to be fun to watch. >> it's going to be great. we're 2-4. we had 12 penalties against the bills. our offensive line can't block. >> eagles, taking giants. it's all legal now. it's all draftkings, a nasdaq company. >> cramer's "mad dash" and the opening bell after this.

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all right, let's get to a "mad dash" with jim. we got a little less than three minutes before the opening bell. >> i'm so torn, because marc benioff just posted last night, microsoft copilot, referencing a study saying it's inaccurate. >> didn't he call it -- did he call it clippy? >> yeah, that's why i thought we should mention it. he calls it clippy. >> why is danaher up? >> so, there's a company called sartorius, a german company, probably one of the most befuddling companies in the world. they reported a good number after missing quarter of quarter. every time they missed, danaher was down ten. suddenly, sartorius made numbers. it's because acompetitor of theirs -- in some areas, competitor of theirs finally reported good numbers so this stock is breaking out, and i've been waiting for this because it's such a great company. you know it's rails. >> the rails. >> and they own the commanders. >> for a couple of years, danaher, where the stock didn't do -- >> it was owned by my travel

trust. i bought it for years, and finally it's come back. >> larry culp had been the ceo there. >> they bought that great business from larry. >> they bought right from ge. >> but i think the rails brothers, who also own some of the commanders, along with josh harris, who's, like, mr. private credit, private equity, and one of the nicest guys in the world, frankly, owns the devils. he owns the sixers. he owns the commanders. >> that's harris blitzer, yeah. >> and he's just such a good guy. i don't know if you know that. i mean, when i asked him about how -- he went to wharton. you know, he has these little things. or penn. he has these little connections to the towns and teams that he's with. >> he's all about -- back to football, he's all about football now. >> he is. but commanders look very good. >> what that has to do with danaher, i have no idea. >> the rails brothers have a stake. >> that's how we got there. we started, though, in germany, with the german company that's -- >> sartorius is a competitor of danaher, and i thought -- we had

to mention the copilot because one of the reasons microsoft's been doing so poorly is people feel that copilot is much ado about nothing. >> part of the fun is retracing our steps to where we got to a given subject. >> i want to do m&t bank. >> i made a mention this morning about provisions at m&t and key and wells and goldman and b of a. >> i know. now, m&t, by the way, they were not on the map until the ravens played at m&t stadium, and i want to thank eric da costa, the general manager of the ravens, and watches us, great fan of our show. >> let's get the opening bell. at the big board today, ceo of venture capital firm. at nasdaq, it's glaad, celebrating spirits day to

combat lgbtq+ bullying. >> it's understated how much bullying there is. there's universities that want to cover it up. there are people that are -- the undercurrent, and my daughter is doing a suicide work, and believe it or not -- >> it's a real issue. real issue. >> huge. >> jim, 25 points, once again, from 5,900. >> man, it's -- you never want to get tired of a bull. because that's just a big mistake. but i love a bull that every day you come in and it's a new area that's leading us. that's where we are. >> goldman looking at positioning today or actually earlier in the week where they argue, look at the median return from middle of october to the end of the year, about 7%, would put you at 62 and change. 6,200-plus. >> then you'd be starting to talk about the banks having another rerating because people have -- they get -- remember, say, look at goldman and morgan stanley, which had a blowout number yesterday. because the assets are up so much, david, because the wealth management, because the market's gone up, they're just -- that's

just fuel to the fire without n&a, without ipo, can you imagine what happens when they get those? >> morgan stanley, we were talking about it. leslie was talking with ted pick about it yesterday. >> what did she start with? pick and picker. >> he started with it. >> he said, i'm ted pick, she said, i'm leslie picker. pick and picker. and then it follows up with a great interview. >> there you go. >> kind of takes us to uber-expedia? >> i'll go there if you want. i'm going to -- full transparency here, sort of back and sort of -- i mean, i've been reporting, as many of our audience knows, for -- since i walked in the door at cnbc 31 years ago in m&a. >> what? 31 years ago. >> yeah, yeah, over 31 years. >> oweh my god. did you come from institutional investor? >> can i continue for a moment? we had the story from the "ft," you see the headline there. a few weeks ago, banker talk, somebody said, hey, you know what, uber might be thinking

about doing a transformative, i think, was the word used. transformative deal. thinking about something like that. i'm like, oh, that's interesting. and i made some calls, and i got nowhere, really, in terms of trying to understand whether there had been -- what the target might be. expedia was number one on the list, talked to a few investors as well. it was like, do you think, could it be? obviously, dara, the ceo of uber, was the ceo of expedia. he's in the diller camp. diller controlled expedia. what would be the thinking behind something like that? but ultimately, sort of said, well, i cannot in any way confirm that there are any discussions, and for me, the bar has always been, are the two companies talking? companies always think about doing things. that's one of the things you do as a company. what should we do? we're generating a lot of cash at uber now. good for us. what should we do? is there a better way to use that cash, as opposed to just buying back stock?

companies think about these things all the time. the bar has never been for me to report on a company thinking about doing things. by the way, it can inform the market, so i don't necessarily say it's the wrong approach. >> absolutely. >> but in this case, guys, few weeks ago, heard this, transformative thing, banker talk, frankly. sometimes bankers like to get an idea out there into the marketplace, almost to help them convince the company that perhaps they really should be thinking about doing it. "the ft" reports they are thinking about it or have explored it, but they didn't approach, and they didn't discuss, and that's where we stand. could you see something like that really happening? it would lower their growth rate at uber, hence why you're seeing the stock sell off a bit, even though it doesn't appear as though it's gone anywhere. i think the bigger takeaway is, uber's probably thinking about things it can do, jim, as it generates more cash. >> right. >> and as it approaches sort of this new world, so to speak.

>> okay, so, david, is there any chance -- is there any chance -- we can't go over booking because booking is $146 billion. >> would you create some sort of super app? expedia is coming around. they've done a -- they've made some real progress there. it does grow slower, obviously. there are those who believe it is undervalued. they fixed their technology stack to a certain extent. and as i said, uber has been a thoughtful company. they are generating cash, but i just wanted to give full trarf my process and, you know, when you do talk to other people about this possibility, it gets out there. >> oh, absolutely. look, a super app. >> i'm not sure that means anything. >> a super app would be really cool. >> you think so? >> yeah. i mean, it would be cooler for us as customers, yeah, because well, i want -- you land in a city that you just booked an -- you bought -- booked on expedia. when i owned an inn, we used expedia, hotels tonight, it would all be one comprehensive thing, and it would be

magnificent for customers. i totally get it. >> so, again, no approach, no discussion, at least according to the -- those who chose to report this exploring story. that said, i didn't come up with anything as well a few weeks ago when i first heard it. elevance health is a name we got to hit, guys. down 17%. our viewers may recall united health care, one of the largest insurers, 500-plus billion dollar behemoth, also got hit of medicaid, on medical loss ratio. you're talking about a company that has 40% of its revenues are related to medicaid. so, i believe, as a percentage, that's the largest. some of our viewers may wonder, wait a second, medicaid, that's a, you know, that's government, that's state, that's low-income. why are there insurers involved? well, the states outsource medicaid to managed care companies to try to lower the overall costs, and then they basically guarantee them a margin on their business. well, they've been mispricing these policies now.

why? well, it may be that you had a health care system that was understaffed for quite some time. people were not getting the care they needed. they were waiting. things have normalized. people have gone to the doctor. they've realized there are certain things they have to deal with. costs have gone up, and rather substantially. and so, you're talking about a medical loss ratio, if you back into them, being about 200 basis points above, broadly, at elevance and if it's all medicaid-related, could be a 400-plus basis point differential higher on the medical loss ratio. but what's important to note here is that the states make this up over time. you get reimbursed over time from the states, not right away, not in the same year, so -- >> no catch-up? >> this year, they will catch up. >> that's important. this is -- people should know this is anthem. the old anthem. >> it's the old anthem. >> at blue cross blue shield,

very good company. all these companies do a pretty good job. humana was one that fell down on the stars -- >> humana fell down on medicare advantage, not medicaid. >> if you really want to just go in there, santin offers a product they make money on. >> they're medicaid. >> their medicaid is very good. and then unh is starting to come back because that's considered to be the blue chip, obviously, dow stock. >> other names. i haven't seen cvs. cvs, it's 12% of their insurance business is medicaid, and aetna is only 30% of cvs overall, so it's -- that's, you know, small. >> yeah, i thought when walgreens announced its closure of stores, that was good for cvs. but it just turns out that there's -- there's land mines in the health insurance business, as opposed to, david, the property casualty business. >> travelers. >> it's just incredible. i'd love to be in the property

casualty business right now. >> that's a new high on travelers. premiums at a record. even with higher cad losses,jim. >> the combined ratio, the key number there. and people feel that you can raise rates, obviously. now, if you want to be in it, and you feel like you miss travelers, please go buy chubb, which is a magnificent company, even though it's up 6% and at $299, i think the thing is radically undervalued. chubb is still cheap. incredible. 13 times earnings. >> investment income doesn't hurt either. >> no. i mean, again, i feel like i -- i don't want to be a pollyanna, but a lot of companies do very well at this point in the yield curve. a lot of companies are doing very well, because they have been able to raise fees. i go back to the major banks, which reported magnificent numbers. i'm still waiting for the big stinker in the -- in this earnings season, and you can say, oh, csx, no, not really. but it's just so far the earnings season's been really

magnificent. we're really one wieek into it. >> i don't know if you saw this verge story that meta is laying off people. it's not large layoffs. >> year of efficiency. >> yeah, well, that was 2023. >> we're back. >> apparently, it continues. >> yeah. >> it's that insta, whatsapp, and reality labs, i think. >> whatsapp, instagram, and reality labs, according to people familiar with the matter is what the verge is citing, but it got noticed by a couple of people i spoke to this morning. stock is up. of course, it's been a great year for meta overall. you can see right there, 79% for the year, 64% or so year to date. >> we are sort of beginning to track some year-end head count reductions, nokia reports today. some in europe and china. deere, a few hundred. >> 300. yeah. >> airbus, we mentioned. boeing is the big one. >> yeah. look, i -- i think that, again, the -- i really got to go back with this jonathan gray thing. these are all the air cover. fed's looking at numbers.

there's weakness everywhere. >> the next employment report is going to be weird because of the boeing strike and the hurricanes. >> yeah. and autos are very weak. don't forget autos are very weak, and obviously, one of the candidates, former president trump, would redo the relationship with mexico and that would drive autos up because so many autos are made in mexico. >> you mentioned that today, "the journal" piece is titled, "a second trump presidency stands to radically revolutionize world trade." >> yeah, it does. >> remake world trade. is the market -- druckenmiller yesterday argued that the market is pricing in a trump victory. does that make sense? >> i don't think so. i like stanley. he's a really good guy, he's really smart, but industry-by-industry, there's some -- some things haven't. and one of them is the auto industry, because the auto industry would be severely protected, which would then raise prices for the autos, but it would also hurt the american consumer. >> the other thing druckenmiller said, of course, was lamenting

selling nvidia. "big mistake." >> i have to tell you. one of the reasons you have to like stanley is, whoever admits they sold something? whoever says, licking my wounds, and the answer is -- investor that's never had a loss year, has a level of humility that i love. kind of like tepper, but less profane. >> he's not alone in being sad that he sold nvidia. i mean, anybody who sold nvidia is sad they did so. i'm sure masa, in particular, at softbank -- how much percent did they own of nvidia six years ago? >> well, remember -- >> made some money. sold it before the big move. >> jensen has -- there are so many millionaires at nvidia, it's incredible. i mean, you go in, and everybody -- so many of them. and the humility there. you don't think anybody's any different from working at bethlehem steel. it's incredible, the culture they have. nvidia is not up as much as i thought off the taiwan semi.

>> one thing that is up is broadcom. approaching its 52-week high. >> is hock going to do a deal, david? people think that hock tan, ceo, has got -- now, he said, listen, don't worry about it. he's magnificent. >> is he involved in helping meta with its chips that it's designing for inference? hock is on the board too, now, right? >> it's not -- look, the main driver here is datacenter, a.i., i mean, it's the unsung a.i. play, frankly. you know, meta, we should go back. if you go back to what mark zuckerberg said on that conference call, he's saying, write us a check and we'll design the ad campaign. adobe's stock, not doing that well, and zuckerberg, i don't know if there's room for any other medium to do advertising. david, i'm not kidding. i remember i worked at radio, and the advertisers just went away. i mean, i hope it doesn't happen to tv, because we're in tv. but if you want to introduce a campaign, you would write a check to instagram.

>> well, amazon's going to make $50 billion on ads this year. >> amazon's doing so well on ads. and you look at the tv, and tv's, like, wow. i don't know. >> we do have our julia boorstin, who's confirmed those meta layoffs, so no need to attribute any other organization. >> the other news on that is the safety features they're adding for teens on instagram. >> good. >> they do say in a statement there at meta, they're moving some teens todifferent locations, moving some employees to different roles, and in situations like this one where role's eliminated, we work hard to find other opportunities for impacted employees. >> they have those ray-bans that are remarkable hit. they're not even big enough to hit the radar screen. what a company meta is. they've got a henry ford attitude down there. never complain, and never explain. >> how about never surrender? they got that too? >> that was the wrong team. >> oh. >> with henry ford.

>> got it. >> jim, robinhood, making some news this morning. >> yeah, look, i -- vlad came on this morning, and he was -- he told a good story on "squawk." look, this is a -- let me just pivot here. morgan stanley buys e-trade, and i didn't think they really did a lot with it. starting to look like they did. but robinhood had -- let's remember, this company's up 108%, and they're trying very hard to convert and have investment, you know, with the 401(k), i.r.a., but in the end, it's options and crypto. it really is. the pastiche is options and crypto. but what can i say? those -- the options, i think, are dangerous, but people have so much fun with them. they do. >> so, in the battle between the schwabs and the hoods, who won? or did they take different pieces of the pie? >> they take different pieces. schwab, a lot of that is just passive 401(k), s&p, but schwab did have a great quarter putting

to shame all the bears. anyone who invested in the s&p, obviously, is doing quite well and a lot of the money at all these banks is just s&p. they don't do as much individual stocks anymore. >> thoughts about netflix tonight right after the bell? stock's down 1.5%. still up 42% for the year. >> i think that you can buy some before and after. i say that because if they don't have the ad tier this time, they'll get it next time. the ad tier is going to be very, very big. ahead of -- >> it's been a slow build, i think, hasn't it? >> it has been. well, they said -- they kind of had an orson wells, no wine before its time, old reference. >> the password crackdown at this point? >> that's a good point, yeah. that's a good point. >> we'll look for a potential price hike on basic, which it's been a while. >> yes. i think that it can -- it would be sustained. the group -- i keep thinking, if you could target -- let's say you could target -- let's say you -- that they are

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plus, a free samsung galaxy s24 fe. it's time for jim at stop trading. >> the great retail stock of this generation is pal not ir. mizuho comes out today and they have a sell on underperform, but they raised the price target and this is from my top ten list i do every morning free for anyone who signs up for the number five, and i love this. in their little mention of palantir they say we remain concerned by the lack of visibility in its business and find the current valuation indefensible and we raise the price target from 30 to 24. you have someone who doesn't like the stock and it won't stop. they have software and they have alex carp who is one of those ceos that we dream of, right? he just kind of tells it like it is, curse words and all.

>> i saw them up the target on service now, as well. >> yes. we have a lot of the software companies that are doing well and continue to see that agent force for salesforce, mark benioff later this year and people should start realizing that it's not just chatgpt and hallucination. yesterday there were lyrics of a song and i went to meta and it said i'm not allowed to give you that, sir. >> interesting. the larger question is when is it going to start playing in the enterprise in a significant way. >> that's very easy. >> and the tens, if not hundreds of billions of there ares. >> that's easy. when you're no longer sit in, to me and i talk to agentforce. not that i want agentforce, i prefer you, but if you're

interchangeable, i guess we could all save a lot of money in the stock and go higher. >> there it is. that's benioff and matthew mcconaughey will be involved with that and he's a thoughtful person doing thought leadership on ai and matthew mcconaughey is very cool. the guy with the pink socks is much cooler. >> you told that story. >> not everyone watches and plus, i have sl green and new york real estate is doing incredibly well. i don't know. i'll ask the role of the mayor of new york real estate, david. the mayor. >> real estate is still somewhat of a challenge and maybe occupancies are up a bit. >> yes. we've seen some upgrades. >> if i were going to the sao paulo game to the eagles would i

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♪ ♪ good thursday morning. welcome to another hour of "squawk on the street" i'm live with carl quintanilla and david faber. take a look at stocks, we're higher arc cross the board. the s&p is up a third of 1% and treasurys, the trend has been

higher treasury yields and we've really seen that post in the last fed meeting when the fed cut 50 basis points and it looks like it continues again just below 4.1 and on the ten-year below 4%. we haven't broken out of the range and we have seen it after better numbers. 30 minutes into the trading session and here are some movers we're watching this hour. shares of taiwan semiconductor rallying and the world contract's chipmaker is beating estimates and we'll go deeper into the semis this hour. shares of elevance health getting crushed. the worst performer down 14%. the insurer cutting because of unprecedented challenges in the medicaid business. uber and expedia are both on the move. uber has explored a possible bid for expedia in the biggest acquisition ever. more on that to come, as well. >> very busy day. >> sorry.

>> nothing. >> very busy day for ecodata. let's get more from rick santelli crossing the tape. >> yes, carl, indeed. we are seeing the q3 number and we may add a bit to gdp although i will point out that we get our first look at third quarter gdp on wednesday, october 30th right before halloween up 0.3%. as expected in the rear-view mirror up 0.3 becomes 0.4 tenth and you fibonacci guys, it's been up 0.3 and retail sales, yes, sir, they're up today and retail sales are strong and there is a battle going on, the seasonality battle and whether it is the jobs report or retail sales. if you look at all three, they were negative and the non-seasonally adjusted was down 7.5%, many economists are trying to debate how to interpret that number and to interpret national association of homebuilders

market index. for that, we go to diana olick. diana? >> builder sentiment rose two points in october on the national association of homebuilders index. anything below 50 is considered negative, but this is the second straight month of gains despite the builders citing affordability conditions. that's because mortgage rates have moved higher in the last two months and the builders say they're feeling more optimistic about the markets next year though they are forecasting uneven declines. of the index's three component, current sales conditions rose to 47 and they increased four points to 57 and that's the only one in the positive territory and buyer traffic rose two points and still only at 29. regionally, sentiment was strongest in the northeast at 51. every other region came in at 41 and the share of builders cutting prices held steady at 32% in october while the average price reduction moved back to

the long-term trend of 6% after falling to 5% in september. sarah? >> okay. good to see a little bit better confidence. diane a thank you very much. diana olick. we just heard from the ecb president christine lagarde that the decision to cut interest rates as expected she does a good job at not really hinting or pointing the market in any direction about whether they'll cut necessarily at the next meeting. here's what the ecb president just said about the outlook for the economy, though, in europe. >> the risks to economic growth remain tilted to the down side. lower confidence could prevent consumption and investment from recovering as fast as expected. this could be amplified by sources of geopolitical risk such as russia's unjustified war against ukraine and the tragic conflict in the middle east which could also disrupt energy supplies and global trade. >> she also said that europe is

in a disinflationary process which continues and the euro is weaker. so market expectations that they'll continue to cut rates. on the other side of that trade, the strong dollar and better data and i think we should dig in, and the headline, it does include the price increases increased 0.4% on the month and that is a step up in retail sales from the .1% gain that we saw back in august. if you take out and strip out the more volatile stuff, autos and gas stations and then you get 0.7%. the control group which is really important because it feeds into gdp, that 0.7% it was a surge and the strongest in three months. so the atlanta fed, gdp tracker that are we look at all of the time that gets updated with the inputs, that should go higher off back of sales. the last reading was what?

3.2? 3.3. yeah. it's around there and the point is things are better. i mean, we were expecting and bank of america put out expect a strong retail sales number, stocks are at highs and that's good for the wealth effect. gas prices are down and that keeps money in their pockets and inflation has come down which affects things like mortgages and credit card rates. so things are really lining up for the consumer. if you strip down where the strength was, 10 out of 13 categories of spending actually gained on the month. that's another good sign that it was broad based and miscellaneous store retileaileri don't know if -- and miscellaneous which doesn't always happen and that's where inflation is. if you look at where the decreases were and what was not helpful. obviously, gas stations because

we're spending less on gas. furniture continues to be a depressed category and that's been a long-term story and electronics and appliances and the only other one i wanted to highlight is restaurant because that's the only service sector part of spending that goes into this report and that was the most in nearly a year. add it all up and it's actually a solid picture. >> consumers still got it. still spending it. >> another piece of evidence post-fed meeting that things are looking good. like, they don't have to go 50 again. they can go 25. they can pause. they can look at the data, but if you add it with the strong jobs report that we got last month and some of the other indexes, confidence has been a little bit higher. inflation still kind of benign, but there firm readings on the super keir. it gives them flexibility.

>> inflation is faster and when we look at banks and net chargeoffs they've not been elevated at any of the huge investment banks. and bank of america, those charge-offs were down and that's why brian moynihan was talking about the acceleration, and i picked up from the economist with forward bonds. here's what he said, the consumer is steady as a rock with the spike in job layoffs turned out to be a red herring when it comes to gauging the growth potential. no reason to question the strength of the economy or the outlook for the rest of the year given the latest batch of the economic report and that's bullish. >> when it comes to the election,s there's this disconnect. the polling shows that people are unhappy with the economy, i think, broadly speaking, even though it seems to be a strong economy and it doesn't show up in their willingness to spend. interesting. you may answer the poll one way and then you're still going out and going to the restaurant.

>> >> if you're partisan and feeling more tribal as we are in this election sometimes maybe your answer, that's what dictates your answer about how you're feeling on the economy. that and we've talked about this a number of times, but you cannot ignore the sticker prices even though inflation rates have come down compared to 2019. it still feels crazy sometimes when you're at the grocery store and even at the department store for clothing and how much prices have gone up. >> it speaks to the power of an inflationary mindset, although half of the cpi food bask set in deflation. >> rates have come down and people still see the higher cumulative effect that where they were. you pay attention to what you're spreading. >> and the savings rate which continues to be fairly strong. although bank of america and

they were still higher than 2019 and bank of america has always had those strong figures and pointed to the strong figures. bottom line, consumers in fine shape even though they're not feeling that way and it's not just spilling into the election. it's been a constant theme of this entire recovery. >> meantime, speaking of this, netflix will report after the bell. our next guest raised his target and maintains a buy and raised viewership trends and does he anticipate a price hike ahead of the holiday season. allen gould is here. good to have you. >> thank you. >> what we keep hearing is that the bar is high. when i speak to investors, everyone is expecting a good quarter and the anticipation is that they will beat the sub member andwe don't have the sub

number and it's been concentrated by the street. >> what the buy side says about subs this quarter. it's a million or two higher than consensus. >> is the big number going to be that or guidance as long as we have it. i think the guidance for 4q and we want to hit the numbers, but the 4q guide is so important. >> what do you think is working here and are they done expanding their tentacles into verticals so to speak? >> i do think they get more and more involveded in sports. they went from sports at programming to wwe and entertainment and two nfl football games which that's as pure a sport as you can get. so i think we'll see more in sports over time. they're spending more than anyone else on entertainment content as the audience continues to grow in the subs and they'll start spending more

on sport. >> what is the number now on overall content in netflix. 17 billion or so. it's been kind of flat. that number has been around for a bit. >> it's leveled in the last couple of years since the strike. it was down during the guild star from where it was. >> still an enormous number. we talked a lot about it. it seems to be building, but slowly. perhaps more slowly than when it was first announced. >> they talked about it with crawl, walk, run any we've been in the crawl stage longer than anticipated. they came out with the engagement report. they had 94 billion in the first half of the year. it was up 1% year over year. when you have the ratings that viewership eventually the ad dollars will follow suit. what will happen is they don't have as many members on the ads here yet. that's growing and you probably

need 50 million u.s. house holes of scale to the big cpg advertisers and 20 million viewers in the u.s. right now. so they have to grow that and also keep an eye on the sports like the nfl programming and everyone will be seeing the ads and not just the ads here. >> well, you're stuck, too. there's a feature of it in terms of navigating which is a benefit for advertisers. what about the stock itself? what is it? 30 times or something like that rate now. it's certainly not cheap. no, it's not cheap. it's 30 times nextier's earnings and look at where the industry fundamentals are going. the combined other legacy media company studios, they lost $10 billion and they lost 6 billion last year on streaming. they started getting religion and started going for profit xs

they'll still lose $10 billion this year. they'll probably see more price increases by the competition over the last year than we've seen in years. so the prices were really unrealistically low for the consumer and they're probably still not where they should be so as long as we continue to see price increases from the competition and less spending just to get subs from the competition and of course, we've all been waiting for some consolidation so fewer players. i think the environment looks great for netflix. >> we got news this week from the ftc, the so-called click to cancel rule. would we expect turn to be under pressure as a result? >> i don't think for the streaming companies. i mean, for netflix, you've been quick to cancel since day been. others are click to cancel and you stay on for a lower price and click to cancel is more like gym memberships or products like that? what would be a reasonable price

hike on basic. >> on the standard which is a two-stream tier and it's been same rate for ten years. so 15.49 to $16.99 could be reasonable and it could go higher than that. netflix is cheaper than hulu or max on the ad-free tier. >> it's always a mover on the print. it will be fun to watch tonight. thanks, allen. >> good to see you. >> as we head to break, here's our road map for the rest of the hour. taiwan semi shares rallying on the back of earnings and guidance. what it means for the rest of the sector. >> plus health insurers are taking a hit today and we'll explain why. >> and shares of csx warning about the environment ahead and the railroad ceo joins us first on the outlook as we come off the highs of the dow and s&p this morning. stay with us.

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welcome back to "squawk on the street." you can see shares of taiwan semi is up on earnings. it's ai-focused and it is having a positive impact on any number of other ship-related names. seema modi is tracking that action. >> david, the major catalyst is the jump in the profit for tsmc up 54%, though they were looking for estimated growth.

nearly 70% of the tsmc is 7 nano meter and smaller. the company also saying it expects ai server revenue to more than triple this year. the ceo adding that he expects demand to continue to grow from the conversations that he's having with his hyperscaler clients, they have yet to see the peak. he paraphrased jepnsen wong's character situation as insane. outside of taiwan where it's spending $54 million. the arizona fab is making significant progress, but he does expect lower profit ability due to higher costs. a positive read through across the semi space. customers like nvidia, amd and intel shares higher right now and a mixed picture for microsoft that are all fabbing to build their own ai chips inhouse, guys. so far, expectations are very high ahead of semiconductor

results. >> and whipsawed. many chip stocks, even though they said ai was strong and still many of those in the sector suffered and now we get this report. how do we sort of square this. >> they make these machines that are used by the big chipmakers by samsung and intel and some reasons they missed and the guidance was weaker is because they're seeing less demand from intel and here you have tsmc, a much better report and you could peg that a little bit to the slowdown in intel's progressed with their buildout. >> insane is the new word to describe demand. >> insane in the membrane. >> for sure. a high proportion of sales coming from n vid wra and amd playing catch-up with their new chips and intel as they build their foundry in the u.s. they are fabbing with tsmc in the chips. >> best reaction to earnings

from tsm in at least a decade on this print. >> right. >> seema, thank you. seema mody, this morning. >> the railroad operator warning of a more challenging quarter and an exclusive with the ceo. that's straight ahead.

welcome back to "squawk on the street" csx reporting a third-quarter mix on the top any bottom lines and it is down 2.6% and morgan brennan joins us with a special guest. good morning. >> that's right. joining me now is joe hendrix, the ceo of csx. you just posted the results that sara laid out. how much of this was weather impact from hurricanes and how much of this was a reflection of the broader pack row environment? >> yeah. sure, thanks, morgan. thanks for having us. in the third quarter we grew operating income by 3% and a strong quarter by the team. we were hit by hurricane helene. i heard of $15 million of revenue and we had lower truck revenue, so we missed revenue

versus consensus on the basis of 3.6 billion and the costs came in line and that's the 2 cents eps miss and a very strong quarter and we were happy with 12% eps growth. >> you did trim fourth quarter guidance waiting for a recovery while, quote, management was executing well and the overall environment remained to a positive inflexion point t continues to be further out. >> in this quarter, the fourth quarter, you have a couple of big headwinds from theier over year. the fuel surcharge revenue is down, and the net coal prices are reduced and that's a $2 million revenue hit year over year and we had a $50 million operating income due to hurricanes helene and milton to get back up and running and you add those together as pressure in the fourth quarter, but we do see continued progress overall in demand and we've had second

consecutive quarters as 4% revenue increase excluding fuel in our business. so the merchandise business is strong in the ags and chemical and we are seeing softening and steel in automotive and the international modal is growing and it's a mixed message and we are seeing growth in volume. >> from here, a unique vantage point, and it sounds like you expect a soft landing. >> in the same quarter and we're still seeing that, if you think about it on balance, across the markets in general and we would like to see it, and certainly the economy is growing and we're seeing that in different parts of the sectors of the customer segments. >> you just mentioned intermodal and we saw the inventory build ahead of the holiday season and ahead of this port strike we got on the east coast earlier this month, how has the strike and the impact and ripple effects of

that impacted csx and how has it set up retailers and your customers into this holiday season? >> yeah. we don't think there was a lot of pull ahead. there was some pull ahead into the eastern ports and there was movement to the western ports. ironically, for us, if it goes to the western ports and still comes over to the east coast where the population is it's a longer haul for us because moef of the things that come to the eastern ports get trucked to new york or philadelphia or whatever. we think that's behind us now. the ports are up and running. so hopefully we're not having issues in january when they come back together again. the actual demand we're hearing about for the fourth quarter for the peak season will be up and not as up as some would like and we're seeing some uptick in the volume. >> we do have a fed that just began cutting and it's been largely in recession and it's been soft. do you think we'll see an inflexion there, as well? >> we hope so. we haven't seen it yet.

we need to see the automotive market continue to grow. we're the largest mover of automotive goods and we're excited to see that happen and you'll have steel and metals back and if we add that to's strong chemical base, we haven't seen that and we are hopeful it happens in 2025. >> i want the disclosure that it has released a subpoena with an accountant restatement and what can you show, and how you can expect this play out. the sec reach out to us inquiring about it in 2019. we tomorrowly believe our service metrics provide the highest score ever with our customers this quarter and we continue to cooperate

voluntarily. the only change we've made is to take time out of the plans to help serve our customers better. >> joe hinriches of csx, thank you for joining us. guys? >> important interview given the price action and the economic tale that rails are. >> yeah. they move so many goods to so many parts of the economy and for so many end users on the industrial side, on the energy side and consumer side. it's always good to get that take. >> especially on an important week for the transports overall. morgan brennan. china taking steps to revive its struggling housing market and we'll go live to beijing for details and you can catch the 10:00 a.m. hour of skwoe"squawk the re,"stet and on spotify, apple music and more. back in a minute.the ri . at hume know that's especially hume true when you're looking for a medicare supplement insurance plan. that's why

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♪ welcome back. i'm sylvana henao with your cnbc news update. the israeli military said today it is, quote, checking the possibility hamas leader yahya sinwar was among three militants killed in gaza. sinwar became the head of hamas in august following the assassination of the militant group's political chief. he is also accused of being the architect of the october 7th attack on israel. meanwhile, president biden is traveling right now to germany for scheduled talks on the middle east and ukraine. he originally planned to hold a broader meeting of ukraine's military supporters at the u.s. ramstein air base last week which would have been a first in nearly 40 years. however, he postponed that trip to monitor hurricane milton in florida. >> and buenos aires police say

they found one direction star liam payne's hotel in total disorder after he fell from a balcony yesterday and died. they say a search turned up drugs and alcohol. payne's family issued a short statement this morning saying they will remember liam for his kind, funny and great soul. he was 31 years old, carl. i'll send it back to you. >> sylvana, thanks. sylvana henao. the s&p today got to 5875 at the open and two major actions today are the taiwan semi, and revenue guidance is stronger than expected and they reignited the ai trade. retail sales coming in best since the spring ex-auto. that put a nice note on the consumer right now. >> china is announcing stimulus plans that are intended to revive its battered property market. eunice yun is live in beijing

and the details are important and you have some for us. >> yeah. that's right, david. state media described the fact that there will be a heavy punch, they said, that was going to land out of this briefing that we had today of the housing minister, but it looked as though that punch really missed. the three main takeaways from the event was that the government planned to expect financing to complete unfinished residential projects to $562 billion by the end of the year and it would renovate one million homes and the sector had bottomed out. the first is meant to address a big economic and social problem here and that is that many families have pre-purchased homes, but they weren't completed and the government is worried about public anger. stocks tanked and this one just wasn't enough to really convince

people that the fundamental picture in the property sector has changed and that people would be willing to buy again. guys? >> it feels like the consensus here, eunice is they're trying to put a band-aid on the stimulus and not addressing some of the underlying problems and the consumption problems. is that the feeling? >> yeah. absolutely. in fact, there were some china economists who were praising the approach saying that this phase manner is really the way to go, and it looks as though the authorities are trying to get away with the bare minimum when it comes on action, but the problem is that they've been flagging these things making it seem like there will be big announcements like the state media saying this was going to be a heavy punch combo ahead of time and that leads to even more disappointment. >> there are big problems like

youth unemployment and low confidence about future growth. those are the challenges, and i guess it takes something bigger. eunice, thank you very much. go ahead. >> oh. >> no, go ahead. those are definitely the challenges and there were some think tank surveys that were saying what needed to be addressed here with the property sector is that people felt they had unstable incomes, that they were concerned about the decrease in the decline in property prices and that those are some of the main issues and you throw on top of that, there are millions of unsold homes. so that issue has also not been addressed. so because they haven't been able to address those specific issues, you do see people staying away. the big hope at this point is that there could be some fiscal spending announcement possibly in october, or maybe even in november at the people's congress standing meeting and if we had that, maybe that would change the economic conditions overall which could help improve sentiment in the property

sector. we'll see. >> no, that seems what wall street is waiting for, too. eunice, thank you from beijing tonight. when we come back, soup meets hoops. the ceos of campbell's and harris blitzer will join us. "squawk on the street" will be right back.

transportation stocks may be tapping the brakes today, but it comes after one key exchange-traded fund that tracks the industry trucked to a record high just yesterday. our options traders are seeing some unusually high interest in trading volume from big players. find out which ones could provide the best opportunity to get your portfolio moving tinhe right direction. tune in to market navigator at power lunch at 2:00 p.m. eastern time today.

♪♪ stay ahead of your moderate-to-severe eczema. and show off clearer skin and less itch with dupixent, the #1 prescribed biologic by dermatologists and allergists, that helps heal your skin from within. serious allergic reactions can occur that can be severe. tell your doctor about new or worsening eye problems such as eye pain or vision changes including blurred vision, joint aches and pain, or a parasitic infection. don't change or stop asthma medicines without talking to your doctor. ask your eczema specialist about dupixent. ♪ ♪ it's a first of its kind sponsorship. campbell's and harris blitzer sports and entertainment, owner of the 76ers announcing today they're earning a partnership

across the nba, nhl, nfl and nascar. joining us now with more on the deal is campbell's ceo mark clouse and tad brown ceo of harris blitzer sports and entertaining. gentlemen, good morning. mark, campbell's, i usually talk to you about soup sales and snack sales. explain what this partnership is all about. >> yeah. great see you, sara, as always. i think this is the beginning of an evolution, and i think how brands partner -- obviously, a long history of partnering with sports franchises. what is unique about harris blitzer is they brought together the scale of all of these stored franchises in marks that are very important with consumer demographics that match our brands perfectly and also with the venues that they have and our ability from a food service standpoint to be part of those offerings really makes us an exciting way to think about

scaling up and driving efficiency and effectiveness across a bigger platform and a lot of credit to tad and the team of harris blitzer for organizing themselves and really the first of the kind way to be able to interface with a company like campbell's to make this come to life. >> tad, what does that mean in practice and how is it different from a traditional sponsorship that you would get? >> it's really about taking this incredible platform that's been built by josh harris and david blitzer to be able to deliver a customized experience for mark's team and whether that be across all of our properties or select properties, it's about having one interface that could deliver the benefits and the resources, really that a company like campbell's is looking for to be able to transfer across the entire portfolio and it's taken a little long for us to figure that out. we knew that this is an area we wanted to go in over the last year or so because our scale just became so much bigger in

the last two years that it's really turned out to be in partnership and a collaboration with campbell's and they're our neighbors in the philly area, we're in camden and we talked about individual sponsor ships together and we realized this is the right partnership and the right moment to really test this platform opportunity and it's worked out very well. >> i was going to say, give us an opportunity to bring some of the brands that may not traditionally warrant these kind of relationships to bear. you always think of goldfish and chunky as a good match, but this brings brands like spaghetti os or v8 that are a part of the strategic relationship and our whole portfolio can come to bear in the relationship that we've built. >> explain that. how does it sell more

spaghetti-os and the consumer? >> when you think of this relationship, the most critical is understanding the fan base and the consumers that are relating with these franchises that are going to the game, watching them on tv and matching that up with the demographics of our brand, and as you might imagine, the campbell's portfolio very much aligns with fans that are attending, and so what we are able to do is create experiences for them both from a more traditional marketing or activation in the stadiums at the game, flank the games with advertising, but also being able to offer the food. i mean, one of the things we're excited about is chunky soup with the commanders on a cold winter day and a football game and these are things that very much fit the strategic objectives and why this makes so much sense and even brands like spaghetti os in the world of being focused and efficient. we don't always have a lot of

resources for the brands, but here we can tuck them into a program or part of a program and give them support they might not have otherwise received. you've got to be mihmnimble in partnership like this. when you talk about different brands it may be important for campbell's to bring on different brands next year than they are focused next year. >> when you look at our asset base and you think not only from new york to nbc and naturally and globally with some of the reach that we have with some our properties, because you have one point contact within the organization to address all of the different teams that they're partnering. >> tad, is campbell's your exclusive when it comes to the food industry? i'm just curious, tad, how you think about other opportunities that may be out there giving you

now to scale that you feel you can roll out these marking opportunities. >> they're exclusive and what will be most important to them. certainly, we would add some other categories that we've had to work through based on different properties, and that's kind of what the harris blitzer team has had to work through and why it is so beneficial for mark and his team is that we're the ones who have to go through those internal issues so that we can deliver an uncluttered environment to him. this is certainly part of our global portfolio now and you will see some partners coming in on the heels of this because it makes so much sense with the scale we had. so i think that within the next couple of months you will see some additional partnerships that will be announced and that will cross most, if not all of our portfolio because this is just the tip of the iceberg and where we see hbsc going in the future and we think it provides a competitive advantage not only for us and the teams that we're

building ultimately with the idea that we're here to win and we need to create these resources and the opportunity for our different teams and our different fan bases, but this will be unique for the industry and more companies like campbells will say, i can reach all these different odd wrepses and i can reach an international office and i can do it within hbsu and we think that's an advantage for the company? mark, what about you? it comes when snacking is not doing so hot. nestle earnings spoke about weak demand. pepsi also, not too bullish right now on the state of snacking and consumers. i do wonder how much of a challenge and what this signals with the advertising and marketing efforts in an environment that's tougher than coming out of the pandemic where you actually did get young

people to discover your brands. >> yeah. i think, sarah, it's true. consumers, we know are continuing to face a lot of challenges and making sure that we bring value and relevance to our brands is paramount. i do think, you know, we continue to see some positive indicators in a variety different categories, but i do think one of the things i do like about this proposition is because of the scale that harris blitzer has built inside that organization is the ability to create content, to be able to utilize things that we spend additional non-working money to create we can do it in and i think that efficiency stretches the dollar. as we think about this moment in time and being as effective as we can be to impact the challenges you're describing, this fits very well in there, both from a core consumer target and also from an efficiency plan that allows us to get a bigger

bang for our buck. i think in the world of how do we make sure that we're bringing consumers in a compelling way to these categories and supporting the re-jump starting the categories, i think this is a great tool in our tool bag. >> we like to cover these interesting deals as we follow the money here. thank you for coming on and talking us through these new deals. todd brown, harris blitzer, mark brown, campbell's. appreciate it. >> thank you. by the wayk out our sports page, cnbc.com. you can sign up for the latest newsletter using the qr code on your screen or by going to cnbc.com/sportsnewsletter. when we come back, major averages hitting new record highs but health insurance names taking a bit of a hit. coming up on "money movers" at 11:00, josh friedman will join us. we'll talk rates, real estate, capital flowing into private xtou ctie t eonnuinhe ne hr.

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shares of eladvance health down 12% on the back of latest earnings and guidance, not good. dragging down stocks of other health insurers. bertha coombs is tracking this

for us. >> the problem is elevated medical costs for a profit miss for blue cross blue shield insurer. earnings came in 13% below expectations and executives blamed the big shift that has been happening in medicaid membership. that is the government program for the poor. over the last year or so, healthier folks have been coming off the medicaid rolls. those who are still on there tend to be sicker and have more chronic conditions. as a result, the company says its medical loss ratio, the amount of premium dollars spent on medical costs came in 200 basis points above expectations. on the call executives said covid cases were one of the big drivers for the spike this summer as we've seen those elevated cases. that's continuing into the fall. eladvance is lowering guidance

for the rest of the year as a result. you can see how the warnings are impacting its two main medicare rivals, centene and molina health. this is something they called out since the beginning of the year, the mismatch between the rates they're getting and the fact that people are sicker now, the ones staying on the rolls. elevance says they plan to talk to states about their medicaid rates and reimbursement rates and they can get that more in line going into 2025. >> i just have -- why is it so hard to model, bertha? is it the utilization of clients and does it taper off from here given this was such a surprise? >> it isn't a surprise. in a way they've been sort of seeing this. part is the unprecedented shift where you have so many people coming off the rolls from medicaid because for a while it was on hold after the pandemic.

you have a broader mix of people who were healthier, a lot of people were on medicaid because they can't work because they are too sick. now are you left with the people who are sicker, who have higher acuity the way they talk about it. so the mismatch in acuity is what's drawing them at the moment. >> as we see others who provide insurance as well and the medicaid sector getting hit this morning. thank you, bertha. as for the broader market, it is higher but we have mixed messages so far. some of tech is obviously up, as we discussed, including some chip names led by nvidia on the tsmc guidance, strong guidance and earnings. we got a lot more coverage for you of this market straight ahead.

good thursday morning. welcome to "money movers." i'm sara eisen with carl quintanilla live from the new york stock exchange. today the world central banks are entering an era of lower interest rates. how does that change the