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After $20 your credit plus $5 per month without auto pay, debit and bank account required. Regulatory fees included for qualifying accounts, $35 connection charge applies. Market insight and analysis. You're listening to the opening bell of CNBC. Squawk on the street. Good Tuesday morning. Welcome back to Squawk on the street. I'm Carl Quintenilla. David favors back a post-9 of the New York Stock Exchange. Pre-market is steady as we're coming off the best day for S&P Nasdaq since June 5th. Back in the thick of it on earnings, a number of high-profile names raising guidance like GM, GE, Coke and Lockheed. A roadmap begins with stocks looking to build on yesterday's rally. As we said, S&P coming off the best session in six weeks. Plus, we have a lot of earnings reports to monitor this morning. UPS, Comcast, our parent company, GM, as Carl just mentioned, Spotify, also a big mover in the pre-market to the upside. Another firm downgrading CrowdStrike this morning following, of course, the global IT outage of late last week. This is the House Committee calls on CEO George Kurz to testify on Capitol Hill. Let's start with the markets and earnings after stocks did finish yesterday's session with their best day since early June. Jim, I know you've taken note of some names like we mentioned GE and GM, but Danner her as well. So, Danner, it's been a huge slog. I have to say Danner hers was one of the, I'd say top five growth stocks, and then it kind of lost its way. A lot of it was China. I think that that's kind of in the past. They really just came up with kind of a Danner her statement. A Danner statement means we're back to growth. Things are going to be good. This is all health care of a terrific quarter. I mean, David, one of the things that we have, we have some companies that are really well run that had been hurt by China. Danner hers, the first company that came back and says, "Listen, stop worrying about China." It's not really not a role. I mean, you know, obviously Nike, very important. Starbucks, very important. We have these companies that are hostage. Mm-hmm. Not Danner her. You know, you and I talked about Danner her in terms of what had been for so many years, one of the great growth stories and great performing stocks, only to sort of hit a buzz saw, so to speak, for years. Yeah, absolutely. So, is this now a new chapter? Yes, I'm just going to proclaim it that. It's like the old days when Danner has all this good medical technology. It's separated from the Sartorius, which has been a up-down company. I believe, by the way, that we're going to see some good numbers from ThermoSci and Tippings to me. I just picked tapped in TMO and that is looking up this morning as well, just on this, I guess, right? Yeah, on this. So, I think that this one's back. Gee, this is without any real orders because, remember, Airbus can't make enough. Boeing is, well, I don't know if you have to even talk about Boeing. But the service revenue is so great, and Larry Kolp is so great. He's been paying a lot of time in the field, working with suppliers, getting things right. Spires, there's 15 suppliers, still a lot of problems. But he's solving them one by one. So, we've got growth. We're going to use to have growth. We have growth. Airlines, good growth. Medical diagnosis, good growth. And then, David, I've got to go to you. I mean, I'm not sure that the cable industry is providing the growth I was hoping for. No, we're going to get to that in the neck. We're going to do a little tease here. No, we'll get to that in the next block of programming. Because we want somebody to keep morning. Well, or UPS. We've got so many different names to go through this morning. UPS and the cable business. No, they're not. I thought they were in the cable business. They may. I'm not sure they'd want to be in that business either, but the business they're in is not going that well. Be a step up for them. It's not going that well. They did return to positive US volume, first time in nine quarters, although US domestic revenue was still down because of pricing. Yeah, it's just there's just a lot of things not to like about UPS. And I keep hoping that this will be the quarter. This will be the quarter. And it's not. And when it never came over to the revenue, it was good. I was really hopeful. But they, you know, this is empty calorie revenue. Yeah. And I just find that it's, FedEx was fantastic. There were some disappointments. UPS is going to be one. We'll talk about NXP maybe. Paul Larris with yet another tough print. But you would probably argue that the positive prints out outweigh the badge. Well, there's a lot of those copies are just serial disappointers now. Hey, by the way, speaking of serial, Kellyn Ova's good. But that, of course, that's a spun off of WK Kellogg. Serial not doing that well. I go back and I just say, well, in the end, what do I really want out of a stock? If I'm at home listening to the show, I kind of want Coca-Cola. I want Coca-Cola. You know what I do? Yes. All right, why? But because Coca-Cola, no surprises. No surprises. Little bit better. No surprises. The, you know, Coca-Cola's got new brands that are doing well. It's kind of, I mean, it's an unexciting story. I want that. What do you think is the fastest growing brand in the, let's see if he does this, in the Coca-Cola staple? Fast, come on, fastest growing this. I don't remember these things. You don't know? No. Okay, it's fair life. I've never even heard of that. What is it? It's kind of a protein shake thing, protein drink. Oh, really? But G-O-P dash one is the one. By the way, James Quizzini, credit him with actually willing to admit that G-O-P dash one has had an impact. And it's, this, this, look, this, I know no one knows this, fair life, but fair life is a protein based, business, Carl, Quizzini is winning. All right. Sounds good. I like a protein shake. Anything with a protein drink. But my shake is number one on the list for me, though. Well, you're going to get rid of G-1, you're, you get rid of the G, the, I'm not tasting good, Pepsi. No. Gator. I don't drink. I don't drink. I have, I have Dow chemical in later this week. That's an interesting transition. And I, well, because I'm going Dow to G-1 to Celsius. Uh-huh. These are chemical base drinks versus what Coca-Cola's doing well because people like Coke. I mean, look, I, when, when James went to me and he asked with the number one, was I obviously said Coke zero because they've got those really, you know, small form factor red cans. That's number two. And, and he said, listen, you got to start drinking fair life. Yeah. Fair life. Well, Coke's a good example where you had volume and price mix positive, so that trend is intact. Isn't that great? Yeah. Uh, as opposed to say KMB, which is going to open lower this morning. Yeah. That what people really want out of a stock is a lack of volatility. They just want it to go up and they don't want what? They don't want plus three, minus three. I mean, look, UPS. Thanks, Jim, for that great insight. What they want from a stock car, they want it to go up. Nice. Positive, better than negative. I'm so glad. Jim Kramer, ladies and gentlemen. I'm so glad he's back. Yeah. I just, it makes me feel so great. You know, maybe you know something good to say about caucus. I can't wait for that. You want a stock that's going to go up. Okay. If they're short in which case they want to stop you listening to me, everyone cares about Elon Musk. You went down there to talk to him and like, big, big, big, it's a long time ago. I'm on Toya. G.M. Mary Bora wins and wins and wins and is there anything that is, is there a statue? Is there a plaque? Is there anything from Mary Bora? Look it. Let's down. Shoot. That was good. Well, Adam Jones here, the Jonas reaction out of Morgan Stanley. They beat by 14%. History suggests the good times won't last. And of course, the FT with the big piece today on auto incentives, 50% plus in June. What does he just do? He asks you for heaven's sake. He writes a lot. But to Carl's point or to Jonas's point, this thing never gets a multiple. And never see anything. No matter what it does, it doesn't get a multiple. You know what? Look, Jonas likes Ford. Okay. And what was good in G.M. are the SUVs and the trucks and no one makes trucks better than Ford. Okay. And also he cut back one. Yes. Farley cut back on EVs, one of the smarts he's ever losing 25,000 for TV. It was the non-electric vehicles that were powering GM's earnings and particularly the trucks. But it was a very good quarter, not getting rewarded in the stock market to the point being made. Well, show this. Because there may be bad times ahead. I don't know. Jonas. Look at what that's like when you're playing with your and your mom says, hey, listen, somebody always gets hurt. I see him and I say, why don't you spotify me. We're going to get to spot Paul Jacobson was on Squawk today and talked about relatively stable pricing relative to the industry. And here's what Barbara herself said about either China or EVs. Take a listen. The market has significant excess capacity and many startups and established competitors continue to prioritize production over profitability. We have been taking steps to reduce our inventories, align our production to demand, protect our pricing and reduce fixed costs. But it's clear the steps we have taken, while significant, have not been enough. We had expected to return to profitability in China in the second quarter. However, we reported a loss and we expect the rest of the year will remain challenging because the headwinds are not easing. We are working closely with our JV partner to restructure the business to make it profitable and sustainable. As we're expanding choice, other barriers to EV adoption like public charging access are also improving. We are working to finalize commercial agreements with Tesla to give our customers access to their charging network. The IONA fast charging venture, as excited as we are about our portfolio, we are committed to growing responsibly and profitably in any demand environment. Over the next few years, third party forecasters now see the EV market growing steadily but more slowly than it did over the last few years. As a result, we are adjusting our spending plans to make sure we're capital efficient and moving in lockstep with customers. Obvious. Why, Jonas, slakes Ford. Ford doesn't have any China. I was a little worried about warranties, but now we have trucks. Now we have SUVs. We've got great. I think Ford, if they did a buyback, could take this thing to 1670 instead of being one of the worst quadrants, one of the 10 worst cheapest stocks in the S&P. This is very good for Ford. It's for Ford. Good for Ford. It's tough times. Meanwhile, in Europe, Porsche warned down 4% this morning, there's this aluminum alloy shortage. Yeah, that's a strange story. I wonder how much that is affecting GE, aluminum alloy. I don't know. You're a European car maker. You want to own it. It's called Ferrari. A race? Yeah. That thing's always win. 108 billion dollar market value. Well, men are forget sometimes. Many came publicly on these red jackets, and people thought it was going to be a cheap company. Yeah. It's basically got a market value twice that of GM's. Just about. Hey, speaking of market values, I was asking of you yesterday. Yes. With Verizon. Oh, you missed Verizon. I did. I missed it. It was classically terrible. What? What's the matter? It was basically terrible. It was a good line. I like that line. I like that line. I mean, don't they do it. They like to sit down there. Okay. It's got some bad stuff. It definitely was-- And then T-Mobile put up a good print, because they say let's put up a good print. Less than enthusiastic, sorry. The affordable connectivity program seemed to have hurt them on the prepaid. That is the best people can determine, because ultimately they came in okay on post-paid, and that had subscriber editions, a lot of the other metrics, but that was significant. And that-- we'll talk about Comcast after this break, but that also was a concern for Comcast, although that stock is hanging in there this morning after earnings. But that seems to have been where a lot of the concern was, Jim. Yeah, well, if you look at the so far that program is no longer in effect, it was subsidizing people's wireless bills and their broadband bills. Right. And everyone talks about how bad this could be. I'm sure-- yeah, right. When we talk about Comcast, that'll come up. Look, you know, Carl, the industrials have done a really good job. That's one of the themes of the quarter. The banks have done a very good job, and there's this pastiche of, like, transport and communications, which is just terrible. And not that-- well, I'm sure we're David, and we'll talk about Zazlob, and it talked about, right, Amazon versus Barclay? You're going to have that? Absolutely. We're going to talk about Amazon. But these are all shrinking parts. The NBA versus Warner Brothers. Oh, yeah. Meanwhile, Netflix had a great quarter, and I wasn't here to champion it, and I think that was wrong. And I bet you we've hit the bottom in CrowdStrike. We're going to get to crowd. You had another downgrade today out of HSBC after two cuts yesterday. We're slate than never. Meantime, we'll get some media as well. I'll mention Comcast, and then there's Warner Brothers' discovery as we keep our eye on these NBA rides, battling Amazon, and the effort to retain those. We'll get to a bunch of other names, including Sherwin Williams and Freeport and Lockheed and Spotify when we return. Support for this program is provided by Chevron. Demand for Energy is projected to continue rising in the future. To help keep up, Chevron is increasing their U.S. oil and gas production, and they're innovating to help do it responsibly across their operations, including their Gulf of Mexico facilities, which are some of the world's lowest carbon intensity operations, helping supply energy that's affordable, reliable, and ever cleaner. That's Energy in Progress. Learn more at chevron.com/meetingdemand. Want a website with unmatched power speeding control? Try Bluehost Cloud. The new web hosting plan from Bluehost, built for WordPress creators by WordPress experts. With 100% uptime, incredible load times, and 24/7 WordPress priority support, your sites will be lightning fast with global reach, and with Bluehost Cloud, your sites can handle surges in traffic no matter how big, plus, you automatically get daily backups and world-class security. Get started now at Bluehost.com. Imagine earning a degree that prepares you with real skills for the real world. Appellow can make a difference in your life at cappella.edu. All right, let's get to Warner Bros. Discovery, the NBA, Amazon, and some bigger issues that are tied up in this. For weeks, if not months, we've been saying that Warner Bros. Discovery would match the Amazon package that was agreed to between the NBA and Amazon, even before the finals, but I've also been reporting again for weeks, and we've discussed it here at the desk as well, is that it seems likely, and again, we will see, but it seems likely that, in fact, the NBA, which I'm told very much wants an Amazon deal, in part because its owners want an Amazon deal, what would come along with that, will say no, that is not really a match, but it's not a like-for-like match, and there's the very real possibility that you can see litigation here between Warner Bros. Discovery and the NBA. Basically, around this idea of we had the right to match, we're talking about multiple pages of a contract here, not just sort of a paragraph, and you did not say it was, and we disagree, and they'll go to court, kind of odd, of course, and don't forget TNT, we'll be still airing NBA games through the next season. This deal doesn't begin the 11-year deal in question that our parent company, Comcast or NBC, has signed up for ESPN, and Amazon as well, doesn't begin to the next season, but of course, it brings up bigger issues, and there may be a larger argument here that is made as well, perhaps, by Warner Bros. Discovery in terms of not just the power of these platforms to control and buy these sports rights, but people who want to watch NBA games now are going to have to pay another $10 a month, and they're going to get sneaker ads in their feed constantly, and is that what you really want, particularly for people who are not a gym necessarily in the best of health economically, for example, but want to watch NBA games, because you've got to pay another $10 for your prime service and things of that nature. We'll see where this ends up, but it could include not just litigation, but sort of a larger discussion about, is every sports rights deal going to ultimately end up with Amazon, Apple, Alphabet, or even Netflix at some point? Do these companies own the world? Do the owners, the owners, Adam Silver really control the owners, just say, look, this is where we're going, and we don't care about linear. Now, David, the underprivileged argument, there are a great number of people that obviously want to watch NBA, the $10 a month, is that a tax? That is the way I think that they may phrase it if this thing actually gets to a real debate. Now, whether that's going to resonate is very much unclear, but I think that they will potentially go down that road of it being in tax, so to speak, and that this consumer is then also these kids who watch are going to be getting a lot of, it's a retail platform, and then say I want these sneakers or things of that nature. Can we want Charles Barkley, and Charles Barkley goes? Now, in other words, he's retiring anyway, isn't he? No, he would come back, if he would. Wouldn't the owners want better ratings, or do they just say, you know what, we've got to be in bed with Amazon because they got the money? I think that a lot of that is in play. I mean, by the way, the NFL, right, the most important by far, they come up, and there's an out in the 2029 for the NFL, and it's deals as well to that. I said they would do that. I know that, and I understand that the office is five years away, but they're not really, I came out and said, listen, they're high, the highest bidder, don't trust that they'll give it to CBS. I don't think that was well-liked in the Fiefdom, but David, I've got to tell you that I think that Jazlov has some real arguments here, not the least of which he paid to have this right to be able to be involved. And he's exercising it, we will see, but again, as we have been saying for weeks now, the likelihood, may not happen, is that you're going to see some sort of litigation. Will there be a settlement along with it? I want to pivot to Comcast, a pair of our company, which obviously was spending a good amount of the time on their conference call, talking about these NBA rights. The games will be both on, obviously, NBC, but also on Peacock, the streaming service of NBC, Universal. They were talking about a lot of positives associated with it as for the quarter itself, and you can see Comcast shares hanging in there, kind of been all over the map a bit, had been down as much as three or so percent in the pre-market as well. The quarter itself, the loss of 120,000 broadband customers, actually, analysts had anticipated up more losses. The loss of 419,000 cable TV customers, that's video, video customers, actually had been a higher expectation of losses. Theme Park revenue, though, Jim, is the one that is really-- I was surprised. Got to keep tissues down big. And surprised people. That was weak. Peacock subs were up on the call as well. There was this question that we just discussed with Verizon, also, about the affordability connectivity program, what impact that's having in terms of broadband subs, and my understanding is that, in fact, it was actually said that it might kick in really more in the next quarter as opposed--or the current quarter as opposed to the second quarter of the year. This set the stock down, but it has rebounded, perhaps, on some conversation on the call around the positive aspects of the NBA deal, and what that will mean. By the way, the WNBA is included in NBC Steel, WNBA not included in the discovery match. What they matched on was only the NBA portion of it. Okay, so David, do you think it's possible that it's just a better-than-fured situation? I mean, boy, people had really thought that Comcast was kind of a bad quarter, versus what I was hoping, which is something like a long ball, something big, that would make it so Comcast isn't just caught in this morass with Warner Bros. and Disney? I don't know. I mean, when it comes to Comcast, obviously, the focus is much more on the core business of selling people broadband, which is the key for your life in so many ways. Average revenue continues to go up. They raise price, but at some point, you have to reverse it and start adding broadband subs. Carl has brought this up as well in the past. And housing comes back, perhaps, in some way, and people start changing their address. Will that spark some upgrades? Well, if I went that a lot, I'll buy Sherwin Williams, which is going to open up six. Very big. Yeah. Particularly after PPG did not report a great quarter, and people like PPG's industrial coaties weren't as good. This is obviously residential. Look, Carl, I mean, I think that there are these companies that deliver a number that's slowly better than expected this quarter, like Comcast, and they're rewarded. They're rewarded. Coca-Cola. I mean, they don't usually guide it up during this quarter. It's slightly better than expected. They're rewarded. And I think that this whole better than fear is really pretty positive for the stock market. Very few companies just outright disappoint. Polar assets outright disappoint, and XP outright disappoint. Most companies who are either better than fear are really good. On Parks, my Kavanaugh boss was on the call saying that the COVID pull forward was bigger than they appreciated, but also losing some mind share to international travel. And cruises. So maybe the Disney quarter isn't as clear as we know. Maybe they don't have enough ships. I think cruises world. He distinguishes those world commitments. Bob Iger back in the spring at an investment conference talked about parks slowing. You know that. We always talk about the Hugh Johnston normalization line. Normalization. That was the word. Thank you. And that caught a lot of people. But he was being honest, clearly, and that has seemed to also show itself in these numbers out of the parks, which has been the right spot at Comcast and NBC Universal for some time. You want to be industrial. You want to be in tech, and those are doing incredibly well, and everything else is a little mixed. There you go. Thanks. We're good. Transport's not so good. No. Hit or miss. But I industrials have almost all been good. Very strangely that some, that health care of the HCA and health, those are doing well. And by the way, in a Trump presidency, I don't think that they really be underschooled. Right. That you set up for alphabet and Tesla after the belt tonight. We'll get you a gym on that. Get his mad dash, count down to the opening bell and get you one more look here at futures on this Tuesday. Don't go away. 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You get it all for Spotify, $1,999. And David, gross margins well ahead of what people are expecting. Third quarter in a row of profitability, top of record free cash flow. I mean, this is a great business. It's just a great business. And that's what people are reacting to. Yeah. Really extraordinary. You hit everything. I talked to one of the, obviously somebody who owns the stock, crushed it on margins, audiobooks and podcasts doing great, and then they raised price, but it did not hurt churn. Isn't that incredible? And that's kind of the key here. You raised price, but people don't leave you? Right. And, you know, this is not one where they got to add commercials and audite commercials. They're just loved. It made me think that they could have put through an even bigger price increase. Give them time. Yes. Give them time. Yeah. I mean, I actually don't know anyone who's not on Spotify, but the Spotify audio books is just a great deal. You enjoy that? Very much so. Yeah. I still don't like reading my books. I don't know why. But everybody says they, especially when the author reads it. You see the William Shire. No. Rising for the third right. I've read that. Yeah. It's all. It's AI. It's not really his voice. Oh. Well, yeah. He's been dead a long time. Well, I read that a long time ago. I should probably reread it. It's really, it holds up very well. It holds up. I mean, typically the night of the long knives and 34 is really well done. Anyway, I think Spotify is a great value and therefore the stock. This is one of those where, "Hey, why didn't I think of that? Why didn't I think of that?" Yeah, they've gotten it together. Raising price, keeping margins, actually expanding margins, and to your point, offering things that are keeping people on the platform and saying, "We're getting as much as we want more for now." So we've got some good stuff, Carl, and it's right in front of us. There was an M.A.U. Miss, but even some have chalked that up to operational discipline. Expense discipline. By the way, I didn't love that, but she's poor. So that's, I mean, Netflix was pan wilding. I think that was insane. Let's get the opening bell here, and it's going to be, you know, kind of changed. It's a big bore. It is a Maris bank work celebrating a transfer to the NYC from the NASDAQ and at the NASDAQ iris energy, a little operator of bitcoin mining data centers, as we're going to look for these spot e3s to get to start today. I know. Remember Larry Faith was here saying, "Look, you have people on it." I think that I've heard my first, the Chevron decision, this people decision that took away a lot of the power of agencies. I heard that in vote saying, "Look, because the SEC is a little challenged here, because Chevron says the agencies don't have much power. Obviously, we knew that Gary Gensler was not a big fan. But it doesn't matter. It's been overridden, and the fact that either selling off is just a testament to how much it had been bid up, not really anything significant. We do have alphabet, of course, tonight. There's the Wiz news that the apparently talks are broken down. They're going to focus on an IPO, and then there's this bit about Schumer going to introduce an online safety package, which the street seems to think is going to be pretty robust. Well, look, I mean, any congresses, we don't even know what they're thinking down, washing on it, other than the election, I would say this, go over the Netflix letter, and there's this moment where they praise YouTube, saying YouTube is doing really well. I think that that's the story. I am very worried. I don't have my travel trust on it. David, I'm worried that search is being cannibalized. I don't go on search nearly as much as I go on chat GPT. Interesting. Well, we talked about that. That threat was apparent and worried, and the market was worried about it for a period of a few weeks, and then it went away. Right. But YouTube is just a powerhouse. Your point, YouTube is a powerhouse, and the Netflix press release, they did know to of course time spent, which is what they say they compete against. The YouTube has bigger market share of time spent than does Netflix. By the way, I'd also bring up YouTube, the MDPD, when you come by YouTube TV, that's where a lot of these video subs are going that are getting lost by the likes of Comcast and others as well. It just gets mentioned over and over and over again. It's getting larger and larger as a, I mean, it'll be one of the biggest, if not the largest single provider of video services. And that, as Kenazi, will probably not be the Ruth, Porta, will be very important on the call. Ruth Porta has been a star in the last few calls, just dazzling. This is, I think, a good story. I understand what Schumer might be doing, but, you know, Carl, when you talk about anyone in cable and TV, yeah, sure, they'll talk about Amazon, but they're really worried about Alphabet because Alphabet wants it, and Alphabet's really successful. They know what to do, and they make, they have people literally, they have content for nothing. What a great thing. So, you're going to lean into tonight's? Yes, and I think this chrome, the cookie, non-cookie, I mean, it might as well be Yomondly's. I don't really care. God, Disney's so bad. It's like just enough. Where is Hugh Johnson when I need to-- Well, Disney, we should point out, is down because of Comcast, because of the first Disney I got to wait-- We're going to wait for the, we don't have earnings, but the parks, the negative, I want to get the exact numbers on Comcast-- But Disney's the park was down 11 percent, and that is obviously concerning people on Disney. Which again, which Carl's brought up, normalization was the word being used some time ago for park attendance. Many would have thought that they had already taken place in the shares in terms of at least adjusting for that, but I guess these numbers from NBCU on our parks are also giving investors pause. It's being star-posed. It's getting star-posed. Meanwhile, guys, while we're on travel, American, close to a four-year low. You got DOT probing these Delta cancellations from Friday. The ratio of the airline index to the S&P, I don't think it's been lower than it is right now. I mean, they just totally failed. I mean, way to Southwest. Actually, Southwest may not be as bad because they had Windows 3.0. They had so much upgraded. They weren't by the update, David, the update. Yeah, the content update. Yeah. I thought America's best had a much better report than people realize. There's some reports yesterday of what's happened to Kurtz's net worth. After crowd has not been able to catch a break, last few sessions. I continue to believe that people will forget about this six months from now because Kurtz is a beloved figure. He always looks hanger because he doesn't need sleep, which is great. That's how he won the Monze. He won the Monze. I went up to dinner with him, and I said, "You're one of the more boring executives I've ever been with." And he said, "I won the Monze, that's pretty cool." Well, he couldn't need every bit of that, the Monze. When he says he's working 24/7, believe it or not, it's real, it probably is. And he's always in that. I got to get a new sport coach. What about this stock? Is there a liability issue that people should be concerned about and what will that look like? I don't know. But this is a great company, and they had 18% share. No one knew they were so big. I continue to believe that it's in a catch a Roar's time at Palo Alto, but so far, it's been sent in a one, which is really kind of insane. Palo Alto's barely up on this. Palo Alto is... You go to Palo Alto, if you're going to practice right there, you say. But Nick Cash is not really chest pounded, because this could have happened to anybody. You don't do that. It's kind of like when Chipotle had its problem, the airborne, and no one came out against Chipotle, because it's there, but the grace of God, because it is not... I want to come back to a couple of things we've covered briefly. One being GM, the slot stalks down 4% on what I would have thought would have been a very strong quarter. I'm not buying that. Or would have been reviewed as such, but that doesn't seem to be the case. I want to understand why. And then Tesla shares our up, talking about using robots, I think, as soon as next year, and then beginning to sell them. But using them internally. He can do anything he wants. He can just say that, "Let's stop making cards," and people say, "Wow, that's fantastic." It doesn't matter. It doesn't matter. And Mary Barr can't do anything. Well, Mary Barr, stock market likes. I mean, a market cap of... I don't know. They have a decent amount of debt. I'm just thinking of an LBL model here, you know, and buy something at five times earnings. Remember, they went after it before they wanted to do something... Cut out all the loss making. They just run it for cash. Shracking stock. You could... I don't know. I'm surprised. Probably a little out of the... Most people's reasons. I think it's just never known. I'd say again. I think it's wrong. I think that this stock goes up over time. And the stock of the year. They have a huge buyback. I bet you're Mary Barr sitting there saying, "Sell me some." By the way, that's a good point. "Sell me some." It is up 32.5% still for the year. "Sell me some." She's really great. I guess it didn't deliver enough based on at least the performance of the stock so far. Right. You know, I can't all be Spotify. Not everybody can be Spotify. She... Should point out, by the way, actually Starbucks, you mentioned it very briefly there. We mentioned Disney. I know. You and I talk. Okay. Listen, you and I both, frankly, kind of knew that there had been a position built by a large activist, namely expected to be Elliot. That has now been reported, but we don't know what the plan is or whether there will be a plan or whether they're going to get board seats, you know, as a settlement more likely. But they've been talking. They've been talking. David, here's what I understand it at. Tell me. I think that they think it's one of the great brands of all time. The problem is too much demand and they haven't been able to work. How to do throughput. How to do lines versus a global pay. And David, I think that, frankly, if Fuxman doesn't have a good quarter, I don't think it's going to be good conversations unless he says, "We're going to be like Constellation Brands." Come on in and help us. Constellation Brands, they handle it so well. Please. Mark Benioff. Please help me. Well, what does the plan even look like and does it include replacing the CEO? Yeah. If he doesn't do a good job, absolutely. Absolutely. Again, we'll see if Elliot actually shows themselves here and comes, or if there's a settlement, they have a couple of directors. It could be. But, you know, I've been sitting there. I know you had as well sort of knowing this was likely but not knowing size, not knowing intent, not knowing. But a number of sales that I would have liked to have known, if you've reported it, that said, the stock did go up on the report. Well, to sell the stock here is just plain stupid because Elliot knows that the brand is good. Elliot knows that this team so far has not demonstrated any prowess. Right. So, if they work with Elliot, then I think that everything goes smoothly. If they don't work with Elliot, then Elliot's going to find someone else. Elsewhere in food, we got a downgrade of Krispy Kreme, actually it's an upgrade of Krispy Kreme, downgrade of Darden, and then you had Domino's last night where the stocks found some legs here. Do we have any clip of Domino's? Maybe. Would you talk New York style? Yeah. That's doing really well. Russell Wiener, you back with him. He was very chastised. He said point blank, look, we screwed up but it was really this one franchise. Let's listen to Russell. Oh, even better. Even better, we don't have it. Imagine what it sounded like. Imagine what it sounded like. Russell, I can speak for Russell. Yes. It's nanosecond. Well, one of the things that Russell was saying was we are used to upside surprises and we didn't deliver one, but you can kind of bet that that won't happen again. He was saying, listen, we did not do a good job communicating. We have to execute better. I think that the master franchise, the US 3000, did do a good job. You won't hear from them again. And this, by the way, is the man, and this is something I did know. Who came out with that campaign when the stock was a 10 saying our pizza tastes like cardboard. He was the man who did that and Pat Doyle will confirm that. So I want to go with the man who had the single best ad campaign that I've seen in the last two decades. So you want to buy Domino's pizza right here right now. Coming back to earnings movers this morning again, GM, we mentioned down 4%, Comcast shares now our parent company down about 5%, it was watching it closely as we often do, of course. The stock had seemed to be flat to up, but when it finally opened, it has gone down. It's down now 5%, concerned, you know, perhaps the significance of revenues down 11% every year at the parks now, of course, parks weren't incredibly strong and of course had been a real growth engine for the company, one of the few. We talked about broadband subs coming in actually ahead of expectations, even though they did lose broadband subs, video subs as well, ahead of many analysts' expectations. Although of course the losses continue, it may have been free cash flow that came in a bit below expectations, but this is also pressuring Disney shares as Jim pointed out down some 3.3% with no news simply on fears about the parks at Disney if there's follow through from what we saw at NBC Universal. As for other movers, you want some good news, GE's up to and a quarter percent as it should. By the way, that stock up 63% this year and closing to a $200 billion off the back of the cash flow. I mean, one of the things that people forget how great Larry Cole was in his previous day in our dinner, looking really, really good, when I look at GE, they are, think about what they can do when people are actually making engines. This is all spare parts, it is all service. This thing is a coiled spring for when Boeing gets his act. No, if Boeing gets his act together because there's little, well, I don't want to get Boeing even an inch of benefit of that. With Boeing, we're still waiting on the announcement of a new CEO, which should come. I've checked it. They have it. Mike, when I'm hearing this happen, no one wants to figure it out, I'm hearing that no one wants a job. It's a tough job to take. No one's not kidding. I mean, I did a lot of work on that. It's a tough job to take. I'm hearing no one wants a separate turn one. Every turn one is not taking it, no, Greg Hayes is not taking it, oh, Greg Hayes should take it. Greg Hayes could look at great Hayes. He had that problem with engines, and they bought like millions of shares, and then they fixed it as he said he would, and he's, he's too, he's good to go. That guy, there's, they're, Boeing is in his interest. It's Darius a damn check. He's like a Goldman doing something for them now. Darius was good. He, I was fast. I was fast. He was in and out of that place fast. Well, yeah, a little bit shorter than, shorter than, than Dave Cody. Yes. I guess a little bit. Yeah. Wow. I know that Larry Culpa's saying this morning that renewable fuels are really important in Europe, and Honeywell makes the renewable fuels. Do not count. David Vimal, Vimal Kapoorb, he is crushing it already, and so, and Honeywell. He's rearranging the portfolio in a really fantastic fashion, and I, I really like what he's doing. A very strong story. They report later this week. Very, very strong story. Ah, reporting tonight, I think, is Texan, and I wonder after what NXP said about autos, if you're thinking about that kind of thing. Yeah, that, well, that's a concern, but against that we do have Elliot with a stake in Texas Instruments, and I do think that Texas Instruments stock is way up versus where it was at 193, 194, when Elliot got involved, a little bummed out about Kimberly Park here. I thought that they were, you know, stock is damn big, and I, you know, they, they did talk about softer sales. Yeah, organic was a miss up four, looking for five, although they did raise elements of the guide. Wasn't all bad. Yeah, I mean, I got to do a little more work on that because I think my shoes done a fantastic job. But then again, there's issues with some of these soft, good stocks. I, I don't want to pronounce this one dead though. It's been terrific ever since he announced. How about the, the divergence between Polte today and Sherwin Williams going in different directions? I know. No, I, I, Sherwin Williams is just, they're, they have done a very good job separating themselves from the pack. I think Polte was set up, frankly, by how good Horton was. Everyone just fondled over Horton. Looks like Horton's a little bit more sui generis, as they say, and I, I just think they just go on Horton. They've got, damn, it's a great quarter. There was a downright of Lenard yesterday, which I thought was kind of fatuous, uh, toll brothers of the court. High-end million dollars. You're right. Goldman did cut to neutral. Yeah. Lenard yesterday. Yeah. I, I thought that was fatuous. You don't go against Stuart Miller. Uh, son of Leonard Miller, Lenard. But I do think that, that, uh, that was a straight up parabolic move. But the toll, Doug Yearly, uh, is remarkable at all. And I really think that anyone who knows him is just extraordinary, extraordinary gentleman too. See who's here at post nine? Yeah. Never. Oh my. Load gentleman. How you doing? Wins, wins along. Whoo. I know that's something you're here for. Well, we'll find out because the earnings are coming down the pike here, but we have breaking news right now from the Federal Trade Commission, which is launching an investigation into surveillance pricing. In other words, the ability to charge different customers, different prices, the agency wants more information about how AI is used to change pricing rapidly based on data about customer's behavior and other characteristics. So the FTC is now demanding the information from eight companies, all of which advertise their AI and other tech tools with a trove of customer information to target prices to individual customers. So those companies, MasterCard and Chase, you've got pros, which was just named Microsoft's Internet service vendor of the year this year, consulting giants, McKinsey and Accenture, BASK software, which counts McDonald's and Starbucks's clients, Revionics, which counts Home Depot, tractor supply and grocery chain, Haniford, among many others, Bloomreach, which services Fresh Direct, Total Wine and Puma, I mean, these are all retail names that our viewers and their families would recognize FTC, Chair, Lena Klonset and a news release that firms that harvest Americans personal data can put people's privacy at risk. And now firms could be exploiting this vast trove of personal information to charge people higher prices. She describes it as a "shadowy ecosystem of pricing middlemen" and the FTC is demanding information about the types of products and services that they offer, how the companies collect consumer data, who are their customers and how those clients then use this product or service, what impact that has on consumer pricing. The agency's undertaking the action under a 6B authority which authorizes it to collect information for steady without specific law enforcement action. And I just want to note here, it's important that none of these eight targeted companies, nor their clients, are accused of wrongdoing. The FTC says, "Look, the technology is just advancing so quickly, we need to know how it works." But, you know, after the pandemic, when we saw the dynamic pricing, you would go into a restaurant with the QR code and what you paid for dinner might change depending on whether you were there on a Thursday or a Saturday. Now they're saying, "Imagine that you're going to the fancy restaurants all the time, your business traveler, Rezzy knows it based on your phone number. Now imagine that what a restaurant charges you, Jim Kramer, is more expensive than what they charge me." And we would never know. Same steak, same meal, different prices. As someone who owned a couple of restaurants, that would be pretty outrageous. I mean, you spoke to the restaurateur, right? That'd be horrible. You know, how do you live with yourself? I mean, I think like counting your money. Well, no, I mean, you know, "Hey, I'm sorry, you look like someone who's rich, I'm going to bang you." I mean, what do you mean? What's more, they're saying they especially want to know if there's targeted populations. In other words, are rural customers more vulnerable to the surveillance pricing? Are women more vulnerable to the surveillance pricing? But you can see how, I mean, MasterCard, though it's interesting to know MasterCard not Visa. But MasterCard, we know a lot about that. We had to get Michael, and I want to find out more about this. That is a great work. It's supposed to be the same. I agree with it. I was going to the FTC. I don't get it. How could I agree with good report? Really good report. They can have you on the show, you're a fantastic job. Fantastic. Thanks. As we go to break, watch "Bons" today. We've got existing home data coming up in about 12 minutes and then a two-year note auction at one o'clock. Yields lower across the curve at 10-year, four, two, three. Don't go away. Take a look at oil today, first, it's got a one-month low settle yesterday, adding to losses this morning, OxyGym back below the 200-day this morning. Look, this group has become very difficult to own. I think that a lot of us is because it's under Trump. It was hard to own because people drilled and drilled and drilled, lowered the price in the permit. There's something really worth watching. Yeah. We're going to watch that, of course, as we keep our eye on OPEC in the next few days. For now, though, S&P up almost six points. Don't go anywhere. It's time for Jim and stop trading. Cool. Henry Fernandez runs a company called MSCI. And they're the ones who decide who's in an index and who isn't. And this turns out to be a pretty darn good business. Now, one thing I would tell you is there's a considerable short base in this company. People feel that they're not doing whatever. It was like not really not cricket or something. I investigated myself. I did not see that. What I did see was one of the great business models. This is like the most asset light business there is, taking a company, putting it, you know, put China in, take China out, put European bonds in for European bonds out. And everybody's index to what they do. So congratulations to Fernandez, up 10%, really remarkable quarter. This is just, again, a company that you really want to own because they don't have any exposure to anything. They are the ultimate fintech story. Congratulations. And for a while, I was doing the string of all-time highs as given a little bit. Oh, and then it got hit by the short. Now, I'd like to see if the short guy comes back, I'd like to see, I mean, to me, I'd like to see the invitation. It was funeral, obviously. Yes. How about tonight, Jim? Okay. I've got Mattel. Now, a lot of people feel like Mattel, did they get approached? Did they not get approached? Why don't we just answer that question and define it tonight so better? Everyone's got to watch this because if you believe they got to take over bid, we will get it from you non-crizy, terrific. And then we've got Hanukkah from Logitech, whose launch tech reporter at Great Quarter. People don't realize that Hanukkah Faber is a no relation whatsoever to David Faber. None. None. Passover Faber. Hanukkah Faber. Hanukkah. Yeah, whatever. No. I know. See you tonight, Jim. No relation. Mad money, 6 p.m. eastern time. Down, down 30, S&P, up 9. Don't go anywhere. You've been listening to the opening hour of 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, NBCUniversal, 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]
