What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. Market moving insight and analysis join Jim Kramer, David Faber and me, Karl Cantonea on the opening bell hour of CNBC's Squawk on the Street. Good Tuesday morning, welcome to Squawk on the Street. I'm Karl Cantonea with Jim Kramer at Post 9 of the New York Stock Exchange. David Faber has the morning off stocks. Do look to continue their climb with the Russell aiming for 5 straight 1% gains. Retail sales better than expected yields bounce a bit at the short end after the 10-year briefly hit a 4-month low. A roadmap begins with quarterly beats for both Morgan Stanley and Bank of America. Brian Moynihan is going to join us in the next hour. Also, Amazon Prime Day is underway and Elon Musk reportedly committing $45 million a month to a new pro-Trump super PAC. Let's begin, though, to market reaction to those quarterly results from D.A. and Morgan Stanley. Not all of these names are working pre-Mark and Jim. No, I think it's very interesting back, Mark. Really clean. And I like it. That's interesting. I'm 12-ing. That seems to be the number. Of course, everyone's looking at it and how much you're making off your deposits, which they're making a lot of the deposits. They did it without having a lot of investment banking, they had good numbers. Morgan Stanley, the Sportacus Jones, has stock had run very big into the quarter. It's the second best performer after Goldman so far after the last earnings season. What bothered me here, Al-Ashwab, is they're just not getting any accounts that I thought that they're just not making enough money. But I will say this. The one thing you have to recognize is that Wells Fargo really got hit on Friday and then it's been up since. As people realize, wait a second, if the Fed's going to cut rates, here we have the beneficiaries. It's Morgan Stanley and it's Wells Fargo. So before you just dump them, recognize that these stocks overnight have become plays on what Powell does. And you want to be levered to what Powell does and their plays on regulation. And you want to be levered if you think that Trump wins, holy cow, I mean, regulation. Those are the two big narrative engines that work right now, right? The prospective, easier regulation and lower rates. Well, it'd be interesting to see that one of the things that happened with Bank of America, people were worried posts, first in public, in Silicon Valley Bank, that their bond portfolio was an issue with Bank of America. That was a total conard. It just wasn't. I think it was spread by short sellers. I know that that's a tough thing to say, but I mean, honestly, it just meant nothing and things are rolling off and it's very good for them. Bank of America is just very good. I'm glad we have Brian. It's just a really good work. Yeah, net charge-offs, flat quarter on quarter, Jim's point about hold to maturity, rolling off about $10 billion a month. We're going to talk to Brian Moynihan next hour. He's the man because he does tell you, low growth has come down. We do need a rate cut. Yes. Meantime, net charge-offs, I think I just saw on the tape probably lower in the second half than in the first half. It's incredible that plus the retail sales tells you that the American consumer is good. Now, the spoil to be named size business is okay. There's plenty of ammo for a rate cut, but there's no ammo for a July rate cut, which some people- Despite what Goldman said yesterday, solid rationale for a July. I thought the Goldman was a little off the reservation on that. It's a nice, it's a fun thing to talk about, but not be on that. It's like talking about Amazon Prime. I have been site to Amazon Prime, but it's a little bit anecdotal. It took me forever to, I wait, hey, how else do you make money in this country? I waited till this morning, early on, and I had to keep pressing that button to get out of the checkout card, because there were so many other people who checked, pressing the button. Yes. That's stock. Some have pointed out the race among all kinds of corporates to get in front of the news feed to attach yourself to anything related to Prime Day. Amazon's on fire, and I think that- Boy, the price during mobile is low. It is a great company. I know that I talked about the NFL. Maybe Amazon gets involved that maybe the reopen the deal. I'm not sure the NFL's too crazy about that idea, but Amazon can do it at once. They're just the hyperscaler that has everything going right now. Right. Some of the numbers on Morgan Stanley sounded familiar. I be up 51, equities up 18. It was the wealth management up to. Yeah, and the same thing with Schwab. Now, I had hoped that when these companies buy these retail brokers, when they buy the electric, the e-brokers, so to speak, that they would start getting more business. What happens when you're selling these more IPOs? They have a terrific system where if a Silicon Valley company comes public, great feeder to Morgan Stanley's network so far, there's not a lot of- We have not a lot of IPOs from Silicon Valley. Right. Although that is apparently looking brighter. Yes. Some of the reports today out of S&P regarding the pipeline. Yeah, and look, if you think that we're going to have an M&A activity, anything like what we have now, I think that the FTC is the most anti-deal that I've ever seen. The just department isn't so high either. So, I don't know who, like, the President Trump, if he becomes president, he could appoint plywood to those jobs, just like plywood or in stand board, says, "Listen, guys, knock yourself out, except for media, because I don't like Zaslob." You know, that's not even like CNN. I do think that the M&A atmosphere is going to be sick. Yeah. Yeah. And we're going to talk later about how JD Vance maybe colors that backdrop really quick on Schwab, N.I.I. down six, trading down three, I mean, they do talk about sustained equity performance, helping assets under management. But that was, look, Schwab's had a very big run from 53-54 when people are actually worried about their balance sheet. That turned out to not be a problem. But what's interesting is, I keep thinking about Robinhood. Now, Robinhood is going to be gaining clients. These companies are not, you buy a merch trade, you buy e-trade. Shouldn't there be more follow-through yesterday, Larry thinks that right here. And he talked about how the customers are actually going a little more aggressive, not getting at either. These companies really need deregulation, and they need a better IPO market, and they need, when Morgan Stanley's case, they got to get a better M&A market. With these names this morning, we're kind of done with the financial chapter of earnings season. Do you have to tap on it? What do you say? The two best were JP Morgan and Bank of America, Bank of America, slow and steady is winning this race now of the commercial banks. Goldman Sachs was an extraordinary, it was an extraordinary quarter. I actually joked to the people there that when I worked at Goldman, there was this fellow Gus Levy, who was the greatest in, you understood, trading, understood banking. People are starting to talk about Solomon's being pretty darn good. I've mentioned to them, "Is there Gus Levy talk?" They said, "No, but don't get too excited, Jim. But I am. I am. I think that Solomon is the hero of the hour." I mean, think, remember. Not that long ago. Everyone remembers. Boy, people were dumping on him, just trashing the guy, "Well, I'll take 492 any day of the week." But look, but I am wearing a hand as slow instead. It's like perfect, right, just done. It's funny, because that is the Warren Buffett Bank. Remember when Wells was the Warren Buffett Bank? I do remember that for those warrants back in the day. Now, obviously, Charlie Sharp benefits. Charlie Sharp is not going to say, "Listen, the regulation is just going to go." But it has to do with Federal Reserve scrutiny. I just don't think the Federal Reserve scrutiny is going to be as critical as it is right now, where they kept reacting to what happened with the mini-banking crisis. And really, I think, as what I think talked about, we needed them on Federer. I mean, there is a Federing, so to speak, not a great verb, Federer. But I do think that the Federal Reserve being less restrictive is going to cause a lot more wrong growth. And by the way, the loan growth at Bank of America is telling. It's just slowing too quickly. Right. And Powell has to be worried. Right. He has to be worried. But not panicked. I also talked to Brian about the commercial real estate, where they do see some lower losses in office. I thought that was incredible. Sorry. Yeah. I remember when Barry Sterling came on our network, he was a legendary investor talking about a bank failing every week. Well, how about a bank succeeding every week? That was, that number for commercial real estate made me feel very good. Yes. Maybe want to go buy some commercial real estate, maybe some buildings downtown L.A. Or in San Francisco. We're doing pieces about that today. Yeah. Yeah. Yeah. Anything's possible. I do think by the way that overall that the banks were pretty and Morgan Stanley had it not run to 105 and some moron took it up to 107 today. I want to know that guy is who took it at 107 because I want to short everything he's ever done, including his house and me or her, right? Their spouse. I'll short anything connected with those people who paid 107. Jim mentions retail sales. We do get a pulse of the consumer this morning, better than expected unchanged for June. More tenths of a percent when you strip out autos. We were looking for somewhere in the neighborhood of one tenth, Jim. Did you? Nice revisions. I'm sure you saw building materials up one four. Right. And how about clothing? And then I think that my favorite one is electronics and appliance stores. A very, very good number. I am wondering, and Chapel Trust owns Best Buy, so you can see I'm talking about book, but I still believe that things are better in the PC world, that the idea that you can buy a PC that has AI is very good. By the way, what can ask Brian Moynihan about AI? They are saving a lot of money with AI. We didn't even mention yesterday HP's new OmniBook rollout, which we'll start to see on shelves in August. And now I'm going to go for it. I mean, I look, I'm getting better battery life and you need AI and, you know, I don't know people understand the change. This is the first real change since we had the 286 going to 386 and people are acting as if it's not a refresh cycle, I mean, it wouldn't have been a refresh cycle anyway, because it's been three years from when there's been the last wave of buying, but I think it's very telling that people are so bearish, they don't even get that there's a refresh cycle. Now, they're bearish on all those companies, but they're so bullish on the Russell, and that's because that's who really benefits from D-Rig. I mean, a lot of the bigger, lower rates, yes, lower rates, remember a lot of beer companies like regulation. They know it's smothers the small and medium size. Well, you look at the Trump Vance ticket, they're for small medium size, they really are. The Russell's obviously been an important story last few days. We mentioned at the top of the show going for five 1% gains in a row. That's only happened five times, thanks for spoke. Well, yeah, I mean, look, I think that there is a feeling that this ticket is going to make it so that there is real growth in an area that's been hurt by regulation the most. I mean, when we look at regulation, who gets hurt? It's small means that this is because they can't figure out the regulations. The big guy, you think McDonald's doesn't know how to open a restaurant, but if you're opening up your second restaurant and the regulators come in and they say, listen, I'm giving you a city, you know, we hooked it. Wow. That's a big conversation today, and we mentioned Vance because he has praised the FTC, and he has called for higher minimum wage, and he has in the past called for higher corporate tax rates. This idea of neopopulism versus unfettered growth? Well, I think that you'd have to toe the line in the same way that if you called someone an idiot, you don't mean some of the of the more incendiary things he said about Trump have obviously been forgiven. I don't know. I don't think anyone knows how where he comes down the spectrum. I do know where Trump comes down regulation bad. Okay. So I think you have to toe the line of your present period in store. We're going to see how all of that plays into Pennsylvania and Michigan and Wisconsin, which is becoming the locus of this race. How about the Teamsters? The Teamsters. Teamsters. I cannot believe that they're a Republican convention. That's extraordinary. Right. And reportedly considering no endorsement of either candidate, which if you're the union president shouldn't you have the Teamsters, they are a union. Right. Speaking of the election, Elon Musk reportedly putting his money where his mouth is when it comes to supporting the Trump presidential campaign, responding on X a few moments ago. Take a look at the pre-market green arrows. Again, we'll see where we get today after some fierce action in the small caps last few days. Stay with us. At EverNorth Health Services, we believe costs shouldn't get in the way of life-changing care. And we're doing everything in our power to make it possible. So help solutions that also keep your projections at their best, it's possible. 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Look, we need to know how much can be used for advertising in local markets and battleground states and whether it can be used at all. Because that's what I know from people I talk to, that's where the money's being spent. That's interesting that linear still works when it comes to advertising for politics and it is just the money flowing into these companies, extraordinary companies that do that kind of. Is that anything that's stock moving kind of cycle or? Well, I think that unfortunately it's went off, but it's just the one off thing. But I do think that if that money can go into TV, that is just one of the greatest things ever. I mean, because think about it, that still works to get voters out, especially because negative advertising is going to be extraordinary that I think this year. Because you've already see what Trump's capable of and it's not like Biden's going to just sit there and say, listen, I'm going to just take it. The negative advertising's going to, it's going to be a couple hundred million dollars on both parties. Right. At a time where a lot of Americans are just starting to pay attention. Exactly. To the race. Exactly. That's part of the reason we are paying so much attention to the convention this week, the president, former president, naming Senator JD Vance as his running mate. Let's get some more from that on, from Ayman Javars at the RNC and Milwaukee today. Hey, Ayman. Hey, good morning, Carl. You guys have been having the absolute right conversation about this ticket this morning because Trump's selection of JD Vance is really a giant green light for economic populism in the Republican party. Signals where Trump wants to go. Signals where the party is going in the future. I've seen some frankly, you know, very lazy analysis on Wall Street over the past 24 hours on this looking at this kind of like this is a second coming potentially of the George H.W. Bush administration. This is not that at all. This on economics is not your father's Republican party. So take a look at what JD Vance means, what Donald Trump means when it comes to big corporations, for example, big finance and Wall Street capital. JD Vance is a skeptic of a lot of those institutions. Here's JD Vance talking to big bank CEOs back in December. He's discussing the idea that big corporations are injecting sort of woke values into their workforces and into their customer bases that conservatives don't like. This is not a conservative movement that sees itself as simpatico with big CEOs. It sees themselves culturally in many ways at odds with big CEOs. Here's JD Vance last year. If you guys are going to use the financial power that you've accumulated to go to war against the values of our voters, impoverish our constituents who rely on cheap energy and destroy the jobs of people who work in the energy sector, why should we listen to you when you come and ask us for a tax break or for reasonable regulations? I'm one Republican who wants to have a good relationship with you, but the more you guys insult yourself into these fights, the less good that relationship will be. I think that captures the tenor of the remarks from JD Vance there. This is a Republican party now that views sort of coastal elites who run large corporations particularly in Wall Street as potentially on the opposite side of a giant cultural war that's happening in this country. That leads you to a whole bunch of different conclusions. On conclusion, the economic populace have is that policy has been focused too much on consumers over the years. That is making prices cheaper for consumers when in fact it should have been focused on making wages better for workers. That leads you to a whole different set of policy choices on a whole host of issues. Take for example the question of defense stocks. Saw some analysis yesterday that this was potentially bullish for defense, but in reality I think you've got to look at cutting back on Ukraine spending as being bearish for defense stocks at least in the very short term because a lot of that spending is going to American defense companies. Then you've got to look at the approach to the dollar. Here's JD Vance's comment about the potential of devaluing the US dollar. He said earlier this year devaluing of course is a scary word, but what it really means is American exports become cheaper. Again, the idea here is that devaluing the dollar is potentially a good idea because it makes wages better, it increases exports, increases opportunities for American workers. I think that's the way you need to understand this shift in the approach to the economy from this Trump fans ticket guys. Back over to you. It's brilliant analysis and I'm not hearing anywhere else. Pro worker is exactly the biggest fear that the Democrats have because this company, this country has gone, I think, I agree with them, I think it's actually gone too far for the big and if you talk to paychecks, it's the small medium that's been crushed by the regulation and they can't hire more people because of the regulation. So paychecks would tell you that's the largest small medium, so this is payroll company. They would tell you this is exactly true. We're going to talk a lot more about it of course and how it applies to a bunch of the sectors. Amen mentioned. Amen. Thank you for that. We'll get Jim's mad dash, count down to the opening bell. Got some news on UNH today, Disney, Match, GM and a bunch of calls on shop, Reddit, Starbucks, IBM in a minute. Imagine earning a degree that prepares you with real skills for the real world. Capella University's programs teach skills relevant to your career so you can apply what you learn right away. Learn how Capella can make a difference in your life at Capella.edu. Let's get Kramer's mad dash ahead of the opening bell. Sorry I misunderstood large caps talk that's in the Dow United Health industry was down two percent, that is silly. The numbers were basically in line, this medical loss ratio that's so important. It was fine, but I think matters is now it's done. When you finish that quarter, now we realize if president, we get president Trump in, then what happens is there will be no crunching of their margins. I think any president wants to take, wants to attack if you're trying to get the populist thing going. You want to attack these guys because they're viewed as the villains, but that is not the way I think the Republican party will view it. I think it's live and let live and therefore you're now over the worst, which is the hack. The hack is now quantified. Now you go on and you buy the stock because if the Republicans win, then they're not going to kill United Health. They're fine. They're not going to say, listen, you have to do some sort of, you know, look, remember you're dealing with Obamacare and they probably want to like, they want to wipe out Obamacare if they get a chance. If they sweep Congress, they will. Yeah. Well, they've tried many times, hasn't never quite gotten there. They sweep and they go get it and we brought this up whether you like that or not. I think the United Health is now in the clear to be one of the stocks you buy if you want to bad health care. I still think, remember, President Trump was really negative on the drug stocks last time and the Democrats and Republicans, I thought the Republicans were more negative than the drug stocks. I don't think he's going to repeal the tough stuff. A lot of people feel he can repeal individual elements of IRA, which is Medicare negotiating with drugs. I don't know how they think he can do that. I mean, unless they need more road than somehow as the power currency is the power. UNH does a firm, by the way, but some numbers on the cyber costs and some 92 cents for the quarter. I don't think more than that. Let's get the opening bell in the San Francisco Real Time Exchange and the big board of Chan Heiser Bush and Team USA getting ready for the Olympic Games in Paris just a couple of weeks away at the NASDAQ, the simply good foods company, maker of protein bars celebrating its seventh listing anniversary, Jim, as once again, the breadth picture looks pretty good. Yes, it does. And it's kind of things that are going down or Argus downgrades, General Mills that speak in NASDAQ. Why? Because they're not cutting pet prices and pets down 8%. The companies that can't adjust to inflation are still going down, but boy, the small, medium-sized business on fire and deservedly so, exactly what Eamon was saying, it's who the Republicans favor. They want those companies to grow. Look, I've worked with Larry Kudlow for a long time on our network. Larry, I think he's going to have a high-level position, I believe, if Trump wins. If he wants it, he means obviously he's at Fox right now. But he's always said, look, small, medium-sized business, that's who we're for, and that's Trump's sweet spot. He loves those companies. As for the IWM, small cap ETF, up 8% last four sessions, best rally since 2020, June of 2020, Jim. And as for the Russell, one out of five members now at a six-month high. Isn't that something? I think we had Larry Fink here yesterday from BlackRock saying that customers went a little more risk. I don't think we'll get that same thing from Brian Moynihan. But remember, we're talking about ETFs. That's 10 trillion. By the way, we didn't, like my bad that I didn't say Larry Fink, 10 trillion dollars. You've got to be kidding me that one company has that kind of company. And what's interesting is that Morgan Stanley said they're also on track for a target in the same ballpark. Well, Morgan Stanley is the poster boy of a stock that ran up in anticipation of fantastic numbers. And you're not going to get fantastic numbers from investment banking from M&A. And Schwab is the other one that I think a lot of people felt like the worst is over Schwab. Well, look, they ran. The stocks ran. That's the culprit. Not the actual quarters. It's that people got too excited. No one gets that excited about Bank of America because it's not that exciting. But that's okay. I don't want excited. Right? I'm getting back. I mean, no. I want if I want to settle good in video, I won't go to Bank of America. Speaking of exciting, this is an interesting day in which consumer discretionary will lead better than a 1% gain gym. I guess that's the retail sales. Can you believe it? Yep. But we've got this weird situation call where things are happening the way they're supposed to. Oh, strong retail sales. Oh, let's go buy retail. I mean, the market is very 1995. Now, we had some people talking about how after you get the rate, the rate increases are coming down. The market does very well. We have a market that's making common sense. Oh, this looks good. But then you saw a downgrade of Dollar Tree today, and that's because tariffs and there's no doubt. I mean, JD Vance is Mr. Tariff. I mean, he's incredible on tariffs. Yes. So now we have to start dissecting cost of goods, baskets from China and in every retail? We do. I mean, Hillbury, LG, it talks a lot about these big companies abandoning these towns, and they would do better with tariffs, but he's all over the map. I mean, Hillbury, LG, you could be that as a left-wing manifesto or a right-wing manifesto. He's now telling us it's a right-wing manifesto. That's new for me. That's not the way I thought when I read it. Right. Which is going back a ways now. Yes. Well, because a lot of it is self-reliance, and the old-time Republican, we have to have more self-reliance. And look, I think all of us want more self-reliance, but also there's such a thing called bad luck. And a lot of people in the book, I thought I had bad luck because big steel mills close, that is not the form of the people who work in those towns. While we were on the subject of UNH Jim, just the idea of hacks, this Disney news regarding some of their Slack information in which conversations about ad campaigns and HR personnel were reportedly leaked. Stuff is so bad. I thought more should have been made of the ATT leak, which by the way was snowflake. As they understand it, that was a frightening leak, the ATT was snowflake being part of the problem. That's right. That was Friday. Yeah. That was not good. I mean, look, Disney, this has been a horrible stock ever since Peltz left. Now, that's the last thing they want to hear. That's why I said it. There you go. Yes. I mean, you know, I've invited you Johnson on the show many a time. And when the quarter comes, I hope he sits right there and explained to us why this is the time to buy Disney. He can throw in a dis-tongue by PepsiCo, too, but that's his old child. Right. No, it'd be interesting to talk about where they see the cruise business, whether there's more normalization in the theme parks. I thought the Royal Caribbean. Box office narrative has taken a turn since the last quarter. Maybe not as woke. Come on, we learn to see woke corporate. Right. But your Royal Caribbean interview just tells me, listen. People want a real bargain. And the Disney cruises are bargains, but they don't, they've got to get control of the area. They've got to get control of the CEO. Boeing and Disney, do people just not want the CEO job? When you make 35 million minimum, I mean, you make LeBron money. Is it like LeBron money? The only way you can beat LeBron is to take a CEO job. Yes. Yes. Um, Jim, we talked a lot about Starbucks yesterday, every court today cuts to inline. Same story for Yum. Goes to 145 there. Yeah. Starbucks is, uh, I thought it would be down more because they're saying both the US and China are bad. Uh, Yum is, it's not just pizza-hited. People are saying Taco Bell is weak. I don't know about that because the stocks have been down and down and down, but, uh, I guess it's never too late to downgrade or say something negative about Starbucks. Now, we had a critical conversation with the CEO about Starbucks. We did. And I continue to believe that part of the problem with Starbucks was the, some, the alleged connection to Israel, which is nil. So there's a possibility that US could surprise, but China is a disaster area. I mean, I never went because you're not going to show great wealth. People would buy Rishmont, they buy Rishmont, Cartier, and they're not doing it. You go boss. I was going to say it was Burberry yesterday, boss today. Holy cow. I mean, anything that's even remotely flashing is just not doing, uh, the, uh, there's a look at Rishmont. The, the boss figures, big German fashion house, uh, shares were down 9% in Europe. Cuts their, cuts their earnings and sales forecast versus that. I mean, China's a disaster area and yet I'm waiting for one CEO to come on and say, China's a disaster. We got to get out of China. No one says it. I remember when Proctor and Gamble said, "Argentine is there and we're getting out." And the stock got clobbered and then it's been straight up. Somebody in this business has to come out and say, "China's a disaster and we're done with it." You're exiting production or just exposure? Exposure. Unless you make it there because I don't want, I think, look, Apple is probably the most cherished employee other than Costco, employer, Costco and, and now we're the best employers in China. And I think that the government needs employers. But I think that we're going to find companies saying, "Listen, we're moving away from China." If you think that Trump becomes president because, wow, I mean, Vance hates China even more than Trump. You imagine? Yeah. Meantime, Jim, kind of brings us to cars. I want to play a bit of sound from Mary Barr yesterday at one of our CEO events talking about production targets, sales targets in the EV business. Take a listen. General Motors moving to an all-electric future and almost what's more important is the fact that the vehicle really is a software platform. And so, you know, we're seeing a little bit of a slowdown right now. We won't, you know, we won't get to a million just because the market's not developing. But it will get there. And so, we're going to be guided by the customer. But what I like to tell people is get an electric vehicle and drive it. It's a lot of fun. I got to tell you, you got to buy GM off this. They're losing money on these cars, I think. Ford is losing huge amount of money on EV. We don't want them to sell stuff they lose on. That's how you blow the quarter. Ford has been a magnificent GM, it's been fantastic. What do you make of Ford's run? Last few days. One is about Jim Farley saying, you know what, if we're not making money on something, we're not making it. And that's what we've wanted from Ford. Not sales, but margins, earnings. I think Ford's going to give you great numbers. I think we're going for five straight on Ford, at least. Durbly. Jim Farley, this is his quarter. I think they ought to do two things. I think that they should sell even fewer EVs and they should buy a lot of stockback, which they have. Look at GM, Mary Barr, what she announced at buyback. This stock is great. What we ever do is talk about Musk, right? Well, I mean, as we should, I mean just an enormous market share in the business. Well, it's not true, and Barr's not a ratings magnet. Nor is Farley. I mean, you want these people to come on and say great things. But Musk has a very funny, when he does very, he's good at the means. He's good at the means. He's very talented at social media. And the pro is going to be good. Literally going to social media. He also, yeah, I mean literally and figuratively. Morgan Stanley, Adam Jonas today has a note, Jim, about climate. So we're going to hit near 100 degrees in New York City today. He thinks episodes like that are going to draw more attention to renewables and EVs. Yeah, look, I appreciate the fact that Jonas, like not unlike Charles Dickens, feels the need to write everything. Dickens made it by the word. I don't think Jonas makes it by the word. I don't know what he's doing. Match. Now Starberg. Geez. And that was one of those notes with basically just challenges the competence of management. Well, there's one very funny line in there, which says that the CEO is in the gaming business. That should be, he should be able to do better. And I'm thinking, hoo, Tinder, hinge, draft games and maybe Jason Robinson move into the dating game. I mean, that was a stretch, but the stock's performance is pathetic. And I think Justin is doing a really good job at Starberg. He's right. Go get him. The Bernstein desk today, I don't know if they're joking or not, but they read the letter in the 13-D and say they think that they just want this thing to be sold to private equity. Well, it's certainly cheap and it hasn't kept pace and they own the segment. How do you own the segment and not make more money? I mean, this is how people meet. I mean, I'm not even a people who meet like this. I didn't meet like this. That's true. I mean, I had a couple shots at it and you'd be like this. That sounded bad. Where are we, Jim, on mega cab tech? We did see some insider selling out of Mark Stevens at NVIDIA, board member since '08. All right. Now, which is funnier than how much he made on the selling, or how many shares he still got to go? Yes. Holy cow. And by the way, there is going to be a legendary sit-down between Zuckerberg and Jensen on the 29th. Now, this is just a meeting of the minds. Remember when these people are like, that was a good, I mean, it was a, I'd say a world is collided between those two. And now they're going to sit down and talk to each other. They're going to be very exciting. Look, Amazon is the leader. These guys, it's one day, it's now going to tomorrow be Google and then it's like, there's like a queue and we got to do, we got to do Apple by Thursday. I mean, these analysts just can't stop with the price target bumps to these guys. Although earnings expectations for AI in general is moderating. You would say? Yes, they're moderating. Absolutely. I'm not backing away from Nvidia. I still think that when you listen to, when you listen to super micro, we had them one last night. Oh man, they're talking about just gigantic numbers and they are the partner of Nvidia and then they certainly trust the young mate that very clearly last night. That is by the way the best before me stock in the S&P. Yes. Interesting data out of the B of A fund manager survey gym where geopolitical risk has now outpaced inflation as the number one tail risk. Well, I just keep thinking now, how are you going to get the F-35 into the straits of Formosa? I mean, how do you defend, I think how you defend Taiwan is going to become a major issue in this election and I know President Trump has strong view, I'm calling President Trump because he was President, okay? He has strong views about exactly how the Chinese should handle this issue and from my sources, it's not exactly a discussion. It's more like a one way tail and he's not trying to get more business out of China. Like Secretary Armando is the person running in China. I think for Biden, no love there. She was hacked while she was coming back from China. What do you make of Amund's comments about the impact of a Vancien point of view on Ukraine? Fewer dollars for defense there. Would that put Art Raytheon or anybody else at risk? Okay, I think that's a really great point and I think that these companies are entrenched with Pentagon, they're not going to see less business, the Pentagon loves RTX, just loves them, they love Lockheed Martin, they love, they love companies that make big hardware. Does that mean that they're not going to be able to make the $500 drone from Iran? No, but they're not very capable drones but I think that I bet your advance says, listen, we got to make more cheap military and I wouldn't be surprised if you didn't say we have to have fewer men and women exposed to say, I mean, wouldn't every plane be shot down perhaps as if it can't reach that the family is like, how do you put a carrier so close to Taiwan to be able to defend it from China? I haven't seen how they can do that. We had comments the other day from General Milley looking at long-term the percentage of military personnel that would not be human essentially. It has to go that way but that's not the way the Pentagon wants it. They just don't want that. They want men and women making the decisions and I think that when you sit down with Jensen Wong who is not talking about the military but boy, everything that's made, there's so much in the military horror that's made with gaming ships. Really? Yes, yes because it's in many of the fast relationships of the world. Yes, yes. I just think that we ought to be a little more sensitive to what Silicon Valley says, not just Palantir. Palantir is a little opaque, got a downgrade today. Yeah, and Zuho goes to underweight Palantir. Try to figure out what, I mean, I try to get a really good read on Palantir military and they gave me the consumer package, good guy. Which I just mentioned on air because I thought, did you hear me what I had to say on air? No. Oh, by the way, we have a new bank winner car, we have PNC, like they ever do anything wrong. PNC, like bye-bye-bye PNC, it doesn't even matter. I don't even care what they do. Where loans were down one and deposits were down two. Doesn't matter. PNC's Satan. They're the Satan, because they represent the great middle class, that's the wrap. I mean, you know, they're the, they're the Vansback. The one call we didn't get to that is notable, Jim, is Shopify, B of A goes to buy. Thank heavens. Up a few bucks to 82, that's almost up five percent. You know, when Harley Figgles team is here, he tried to tell a good story and Wall Street said no, it's not true. Now, he's the president of Shopify. It turned out to be very true and I think that what you're seeing is they are the small and medium sized business. Well, small and medium sized business, that's the wrap of the Republican party. It used to be the wrap I felt of the Democrat party, but they're in favor of union. And President Biden has laid on the tracks for the unions. He ought to get them out of the Republican convention. Right. Teamsters. I mean, I haven't seen the Teamsters to hate the Democrats and the Democrats hate Teamsters since Bobby Kennedy. It's not like we haven't had a wave of startups in this country last few years, Jim. I mean, it's been a historic period for new business creation. Carl, if we're going to deal with reality, I have to talk a total game here. I mean, if you want to go reality, I mean, that's like a reality TV show when I worked as a judge from the press. I was with someone last night said, I was working with a judge and he said, how was that? I said, non-disclosure. Whoa. Never is a non-disclosure agreement been more helpful for me in my life. Thank you. Yeah. Even extended that to Lisa Detwhile, or my wife, but it's a non-disclosure. I can't talk about it. Jim, oil, near a one-month low. Our Bob futures also, we've been pretty negative. Actually, that's what big reason why retail sales headline was different than coal. True. People have to understand, there was a lot of buying of the oil stocks. If you go back to when Trump came in last time, it was a disaster for the oil stocks because all they did was drill and they lowered the price. You go by Halliburton, if you believe in this, go by Halliburton, but it was self-fulfilling. All these companies decided to just drill like crazy because Trump said you could drill like crazy. They weren't worried about methane, they weren't worried about flaring, and that lowered the price of oil, which made the stocks horrible. But people just, they should look at history. Now, I don't know, Vance, they got a lot of natural gas in Ohio. Yes, they do. I went to Ohio to see Chesapeake and they said, listen, the oil's going to come up. Wait, do you see the oil of the oil? And natural gas came up. Letdown. A big story in Pennsylvania as well. Yes. The most important story. Now, you're going to export all this natural gas. It's terrific for Vance. Sheryl Brown never really favors the oil companies. No, he does not. Dow's up 300, though, as we're up to 40K, 511. Seems just the other day, Jim, that we reclaimed 40K. This is the most incredible bull market in history. Built on negativity in Pennsylvania. Yes. As is usual. Yes. Watch bonds today as well as we got the Powell comments yesterday and the FedSpeak continues pretty much all week long. We did get the two year at the lowest since February 7th, got to 4.4.2. Money flowing in. And then retail sales came along and got us back to 4.4.6. Stay with us. Keep an eye on the name that Jim has liked until now. I think Reddit today gets downgraded, Jim, over at Loop to neutral. Shortsighted. Shortsighted. Pinterest and Reddit are the winners here. They've got too much advertising. That's really a high-quality problem. You see the performance of the IPO doubled since it came to market. Dow's up 3.30. Stop trading with Jim's coming up next. It's time for Jim and stop trading. Big run in the homebuilders. Obviously, his rates are down. But I mentioned earlier that the local media is going to be a big winner because it still works when you're running for president, when you have these battleground states. And that's next to our media and it's NXST. It's incredibly well-run copy. It yields almost 4%. If you believe, like I do, that this packed money can somehow end up in TV, next starts your play. But that's isolated. You're not making a broad call on media names. Yes. No, you're making a one and done two because it will not be a lot of post-election money spent. But next starts a really great company. And that's where the money goes because there's empirical evidence that linear TV still works in terms of reaching voters. Certainly. The Redbird comments and Skydance comments coming into this paramount world, if you manage it right, Jeff Shell would argue. There is a future. I think that's right. And Jeff Shell can manage it right. Obviously, it worked at NBC. I have to tell you that this could be linear as time. It works. I mean, having done local news, I mean, that's, hey, reach people. It would confound a lot of expectations. Jim, we're going to talk to Brian Moynihan in a moment. What's important going into this conversation? Well, I think that Brian Moynihan has been able to make money where others have it. That interest income, obviously, great, the canard about his bond portfolio and how dangerous was. It was really something that I think the Federal Reserve actually propagated, which was wrong. And the tenor of the company's business, if you look at the stock, this is the big winner for a long time. Brian Moynihan is not a promoter. He's an operator. He can't wait to speak to him because he's a darn good operator. Expenses up only too, as well, is the inverse of the conversation we were having on Friday with some other news. And digital, they've got the best digital, and people don't realize they've spent a lot of money on technology. They have the best AI. They use AI in a very progressive, productive way. They do a lot of things great, and this, it all came together in this quarter. Jim's going to stick around for that conversation. Again, Brian Moynihan, a Bank of America, joining us just after this short break as the Dow's up almost 400, 40K 606, and the S&P trying to get back to some of the highs yesterday at 56.52. Don't go away. You've been listening to the opening bell on CNBC's Squawk on the Street. All opinions expressed by the Squawk on the Street participants are solely their opinions and do not reflect the opinions of CNBC, NBC, Universal, or their parent company or affiliates. And may have been previously disseminated by them on television, radio, internet, or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information Squawk on the Street participants consider reliable, but neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. To view the full Squawk on the Street disclaimer, please visit cnbc.com/squawkonthestreetdisclaimer. Imagine earning a degree that prepares you with real skills for the real world. Capella University's programs teach skills relevant to your career so you can apply what you learn right away. Learn how Capella can make a difference in your life at Capella.edu. [BLANK_AUDIO]
