At the UPS store, we want to make this summer the summer of shipping. Summer ship will lose it, so you can start crossing items off your must-ship list. Like the vintage film camera your college kid needs for class, or the vase you told your mom you would send her ages ago. And with our pack and ship guaranteed, your items arrive safe or we reimburse you. So stop by your local store today for everything you need to be unstoppable. Visit the UPS store.com/guaranteed for full details. Available at participating locations, most locations are independently owned. Product services pricing and hours of operation may vary. See center for details. The UPS store be unstoppable. What's on the horizon for financial markets? At Pijim, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialized across asset classes, but united in collaboration. Our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with Pijim, a leading global asset manager. Market moving insight and analysis join Jim Kramer, David Faber, and me, Carl Keynsenea on the opening bell hour of CNBC's Squawk on the Street. Good morning. Good Monday morning. Welcome to Squawk on the Street on David Faber with Jim Kramer. We're at Postline of the New York Stock Exchange. Carl has the morning off. Let's give you a look at futures as we get ready to start another week. The last week in the month of July, right? We turned to August already. What's happening to this summer? I know. Come on, don't be extra stenchy. I'm sorry. I'm sorry. We're upbeat here. We're upbeat. So's our roadmap because it starts with the Fed and mega cap tech on deck coming off a wild week of trading futures as you saw, pointing them over those continued gains at the open. We're also going to talk McDonald's, those shares, actually not moving that much. That was fine. Given the numbers falling same store sales, that was the first time they've seen that since the pandemic. And Trump's crypto conversion, Bitcoin climbing back near 70,000 this after the former president pledges a national Bitcoin stockpile. Yeah. Also says it's going to fire Garycatster. We actually just covered what we were going to say. Yeah. I don't know that we need to do that anymore. Yeah. Yeah. Yeah. Yeah. A lot of stuff this week. We could dissect that. Could we? All right. Well, let's start with the markets. We have a big week ahead. We always say that, but it actually is true. There's four big weeks here. We've got the Fed meeting here. We've got some important, obviously, earnings this week from the likes of Microsoft and meta. And we could go on from there. You can take a look at the board, what we got coming up. It really gets going there. You see midweek and then Amazon. There's Microsoft tomorrow. Yeah. Jim, you know, give me a roadmap here on the actual market, especially, of course, given the, really the historic rotation that we've seen now over these last few weeks. We continue muted, though, was, but still seemingly contained in terms of outperformance of the smaller cap, the Russell versus the big cap. Yeah. Let's look at Onsemi, which is a company that makes very pedestrian analog chips go into autos versus invidious, okay? Onsemi is the kind of stock that could have said anything this morning, and we'll go hard because it's been left behind. It's not a semi that people are focused on. NVIDIA could say anything at once and it'll end up lower because it's viewed as too big, too much capital. And if you look at the conundrum of alphabet, if they had said they're going to continue to spend a lot, okay, they get dinged for spending too much. If they had said they're not going to spend as much, they would have been dinged for being falling behind Amazon, falling behind meta, and of course, by Microsoft. So the big cap tech can't do anything right. And the smaller cap tech can't do anything wrong, service now, even though it's not really smooth. That's not small. That's odd. Well, but I'm just saying that they have a course to implement AI, but the other guys, it just seems like we just decide, you know, we're going to hold these people to a higher standard. They don't have anything. All right. So what? Now, there's just doctors have a hundred quits. We do head into again a week where we're going to get Microsoft, meta, Amazon, Apple to make four of the biggest companies in the world. Until that changed the narrative at all in your opinion. I don't think so. Look, I mean, Microsoft does something revolutionary and say the PC sales have a real refresh and that there's great interest in co-pilot. That would be good. Amy Hood, the CFO of making those comments, she is not a hype artist. And she did say good things about co-pilot last time. That's what has to happen in order to be able to get MAG, whatever, up. I mean, Adam Jonas came to the rescue of Tesla today after that one being disappointing. No one's come to the rescue of Alphabet, even though I could make a very good compelling case for Alphabet. No one was here. Right. Well, I assume it would start with just the multiple that Alphabet trades at. Right. But back to the rotation and the new perspective on many of these companies, there's no doubt Microsoft's going to talk about how much money it's spending. Yes. How much money. And we now know that's where we'll talk about and/or on AI and the CapEx numbers, as I always, I sit here and just marvel at the numbers themselves, whether it be operating income, whether it be free cash flow, whether it be how much money these companies are spending because we've never seen anything like it. So is that going to overshadow anything else? Because we're going to come back to the basic idea of are you ever going to get a return on invested capital from all this? Okay. So, Jensen Walks hits down with Mark Zuckerberg today in a fireside chat. Oh, yeah. At a graphics conference in Denver. And I think this could be the first time. And of course, Don and Zuckerberg's in quiet here because reports from that. But you might see him lay out something positive with Jensen there. Remember, Jensen and Mark did not, my buddy's Jensen, Mark. Yeah, of course. Did not necessarily get along when this whole thing started. And then Mark realized the value. And I think that he's a big ROI guy. He's not known other than that one branch where he's just trying to figure out what to do. And you know, I think he does the Raybans, but that can't move the needle. You stocks up for whatever reason. But I do think that he can lay out a good case with Jensen there about why he wants to spend some money with with Jensen. Right. I think Jensen Wong. I think that NVIDIA never recovered from former presidents, Trump's pay protection. Pay protection or else. And I actually have sources in the PRC, shocking as that is. I find that hard to imagine. Well, actually, there are American who are there. There are American what? Do you really want me to ask you questions about this? Absolutely. It's going to fall apart. Well, no, because... No, it's actually not. Tell me what these sources are in the PRC. No, no. Just hear me. I mean, they come to you during the night. You hear me? President Xi. Direct line into your brain. Okay. Well, let's go with Xi Ramondo, who was the one who made money last week. She's saying, don't worry, the Democrats would protect Taiwan. Right. Foreign President Trump is saying, listen, we have to pay us. Pay us. Pay us protection money. And a very logical thing was that someone I follow, who's American, who does a lot of this, was trying to say, look, they're not, they would, they're beginning to think, maybe we'd prefer the status quo. Right, if we could get in there and take, take Taiwan, because the government, the government doesn't care, well, that would be an opportunity. It would be a very bad moment for the world economy, one would expect. Yes, it would be very bad. And I'm glad you mentioned that because you're talking about 100% of a company that is one of the largest companies. We're 100% of the companies, Sami's come from a country. Taiwan, Sami, is what we're talking about. Right. All the high-end chips are made. Yeah. Because that, we're in the process of, that was part of the chips act. Very hard. The fabs that are being built in places like Arizona, for example, are trying to change that. In part, some of them being built by that very same company. But they won't be the cutting edge. Look, they're meant to be cutting edge, but the fact is the kind of chips that Nvidia needs are just unlike anything else. They're not chips that go into an automobile. But I want to come back to your initial thesis, because it was interesting. What's that? Well, stock price sort of stopped going up and started actually amazingly enough going down a bit on those. So what reverse is that? I mean, we're, again, back to what we're going to get this week. It seems unlikely we're going to get anybody saying we're going to spend less money on a video of chips. No, I mean, we're talking about 1.4 trillion aggregate is what people are talking about. In terms of spending by all the hyperscalers and everybody else in terms of overtime, obviously. Exactly. But to have Vice President, candidate, Vice President Vance say no matter what the relationship with Taiwan is sacrosanct. Now, the reason it says possible is because that was the former President Trump's rap world. Yeah. He was not. He went to sacrosanct. Have we heard anything from current Vice President Harris on that? Well, only what Gina Raimondo said, the Commerce Secretary, which she said that Vice President Harris is all on board with the current plan. And that is to defend Taiwan at the same time build chips here. That's her position. Okay. Let's move from chips to hamburgers and anything else. Sure. I think that's great. I'm also going to have to do that. Yeah. Let's talk McDonald's. Second quarter numbers were a miss, revenue estimates as well. The company same store sales falling for the first time since 2020. You know, I'm looking at one research report here, Jim, that says that it seems to have been mainly driven by weaker than modeled franchise profit. Okay. So you take a look at the $5, the $5, which by the way, people are saying, hey, they love, they work well, they don't even have enough data yet, it just started. But the idea is that McDonald's headquarters has said we've got to keep prices down. The franchisees are dealing with 40% inflation over a period of four years. And they want to recoup, like the cost of paper, the cost of food, they want to recoup some of that. Right. And when they want to recoup some of that, what happens is you get a situation where the company can't make it so much money because it's obviously it's run by the franchisees. 93% of the franchisees, by the way, are on board with the $5, so that's not going to go away. But, and I don't think that this is any shock. Well, it certainly doesn't seem to be now again, we haven't opened yet, 20 minutes from now, we'll get a better sense, but it doesn't seem to be a shock to investors because these numbers were not great numbers, but clearly would seem anticipated by those who won the stock right now. Let me ask you something. Let me ask you something. Yes, sir. I think that this is a zeitgeist issue. I think that the earning surprise factor is going away. And the reason I say that is because- Don't tell that to Edwards Life Sciences or Dexco, shareholders. No, I'm going to get to this side. But when you have a situation where everyone's expecting bad and it comes in bad, somehow it's regarded good, when you have an expectation where everyone's looking good and it comes in bad, forget it, and then when you have a situation where it's supposed to be bad and it comes in great, here I'm thinking 3M and Bristol Myers, boom. So what you're trying to get away, here's what I'm saying, is that there's always been this manufactured kind of thing behind the scenes of a low bar. I find that right now, if you look at the moves last week on Thursday and Friday were really sensuated and they were all in real failure. Edwards Life Sciences was like, "Wow, I can't believe that." Whereas McDonald's was like the kid. It was a wow. I know. Edwards is no kidding. Oh my god, I love this one. I got right there. I'm glad you brought it up. Well, for Myers was up a lot. 3M obviously had a- Again, the numbers themselves were not overly impressive, but to your point, they weren't as bad, I guess. They weren't as bad. It seems to be better than fear. Do you say BTF? There seems to be some hope with this new CEO that he's really going to be- Chris Burner. He's very good. At 3M. Yeah. By the way, he's taking out 1.5 billion in cost. Well, that's a lot of cost. It is a lot of cost. And that's going to really help situations. They've got a company, they have a mental health franchise that if it turns the corner and makes a platform, it's really great. In the meantime, they've got a breast cancer drug that is very good. They're psoriatic arthritis, which is a bigger mark that people realize they have something very good. We're talking Bristol Myers. Sorry. And then they have a drug to replace Otesla, they've lost Otesla when they bought Sel gene to Amgen. That'll be very interesting to see what happens. All of which takes us back to McDonald's and the fact the stock is not going to go down on numbers that apparently had been more or less anticipated, even though they're not strong. Thank you. That's exactly right. There's a little week through to Lamb Weston, which we know was a stock that really invented this asterisk. See that, again, that was like, wow, there's like, wow, that was bad. And then there's, are you kidding me, we all knew it was bad. Those are the two categories. There is the wow. And a no kidding. And a no kidding. Like, no kidding. No kidding, we thought it was, but three M. Wow. Wow. Bill Brown comes in and he's got a strategy. Hah! It's like strategic. You know, you move the guys around and protect the flight to go. All right. Still to come. Foreign President Trump promising to make America the world leader in Bitcoin. That was over the weekend. We're going to give you a detail, let's give you another look at a few cheers. We got an opening bell 17 and a half minutes from now. We're looking up, by the way, keep an eye on that 10 year. Where were we? 4.6. Yes, that's 4.1. Excuse me, 4.16. On the 10 year, who thought that would happen? And there's a, you know, it's just scheduled auction this week. Well, that's a state very close day because it's a big week. It's a big week. Don't go anywhere. We're right back. At the UPS store, we want to make this summer the summer shipping. Summer ship will lose it. So you can start crossing items off your must ship list. Like the vintage film camera your college kid needs for class or the face you told your mom you would send her ages ago. And with our pack and ship guaranteed, your items arrive safe or we reimburse you. So stop by your local store today for everything you need to be unstoppable. Visit the UPS store.com/guaranteed for full details. Available at participating locations. Most locations are independently owned. Product services pricing and hours of operation may vary. See center for details. The UPS store. Be unstoppable. Vote 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 and progress. Learn more at chevron.com/meetingdemand My dad works in B2B marketing. He came by my school for career day and said he was a big row as man. Then he told everyone how much he loved calculating his return on ad spend. My friends still laughing me to this day. Not everyone gets B2B. But with LinkedIn you'll be able to reach people who do. Get a hundred dollar credit on your next ad campaign. Go to linkedin.com/results to claim your credit that's linkedin.com/results. Terms and conditions apply linkedin the place to be to be. Fire Gary Gensler and appoint a new SEC channel. I didn't know you was that unpopular. Let me say it again, on day one I will fire Gary Gensler and appoint a new SEC chairman who believes America should build the future not block the future. Foreign President Trump speaking out of course about SEC Chairman Gary Gensler that was at the Bitcoin 2024 conference that was in Nashville over the weekend. Trump also pledging to maintain the current level of U.S. Bitcoin holdings. He did stop calling for a Bitcoin strategic reserve. Thoughts? Well I think that Gary Gensler got caught on this one. He was trying to use traditional law which says that if it's a security it comes under his purview. But if it's not a security frankly it doesn't. And I think that former President Trump obviously falls in the camp that it's not a security. The CFTC is happy with that. So you do have this dichotomy of different branches of the government. One is kind of happy with crypto and recognizes that if we don't do it it's going to go overseas. I don't want to say happy. And then you have Gensler who was more circumspect and really was not happy with some of the lesser cryptos which they don't feel merit owning and they shared some of that stuff with me. And I got to tell you there are some outlying coins that I don't think President Trump, former President Trump may really want. But the fact is that this is strange to have a strategic Bitcoin because the reason why you want that is because the government is spending so much money. So on the one hand it would be like if the government was spending a lot of oil and then you got to refill. But the fact is is that if you think that the budget deficit is overwhelming as Larry Fink does, then you would certainly believe it would be great. It's just that it's odd for the government to set up because the reason why we're in trouble is because the government would be better if they cut spending than it would be if they adopted Bitcoin. Crypto. Anyway, if former President Trump wins reelection, one would of course anticipate he would fire a lot of people. So he gets in. He also might ask do we make people come back to the office, which would not be bad for Washington commercial real estate which is suffered dramatically in part because so many federal employees still are working vibrate. So CBRE called a bottom commercial real estate. I know. That was pretty interesting. There have been some stories lately that the banks are finally receiving time. Put the hand on the Bible. Okay. Take it down. Yeah. Gary, you're fired. Is it like that? That would be incredible. Wow. That'd be like lightning. Yeah. I think you're right. You're right. All right. We got a lot more stocks. No, we're not done. We have a lot. We got a lot. A lot. You got a mad dash coming up. Oh, yeah. That's going to be exciting. That's going to be exciting. By the way, during the time, this is what they say. They don't say like, wow, that was really good on Bitcoin. They say it's standing or sitting. This is when we wait for the bird. Judging from the time, we might stand for our mad dash. Really? I have a feeling. Oh, man, I have a sitting suit on it. I don't have a standing suit. I know. I have my usual two suits on it. Taking another look at futures, we get started with trading for the week here in 10 minutes as we've shown you. We are expecting a higher open, of course, keep an eye on bond prices and yields as well. Certainly important for this market. And will that continue historic rotation out of megacap and into smaller cap companies continue? Oh, so many questions here. Let's walk on the street. We're coming right now. With the Wells Fargo Active Cash Credit Card, you can earn unlimited 2% cash rewards on purchases you want and purchases you need. That means you earn on what you want, like trying out that new workout class and 2% cash rewards on what you need, like a foam roller for your sore muscles. That's the beauty of the Active Cash Credit Card. It's ready when you are with unlimited 2% cash rewards. The Wells Fargo Active Cash Credit Card, that's real life ready. In terms of supply, learn more at wealthfargo.com/activecash. My dad works in B2B marketing. He came by my school for career day and said he was a big row as man. Then he told everyone how much he loved calculating his return on ad spend. My friends still laughing at me to this day. Not everyone gets B2B, but with LinkedIn, you'll be able to reach people who do. Get $100 credit on your next ad campaign. Go to linkedin.com/results to claim your credit. That's linkedin.com/results. Terms and conditions apply, linkedin. The place to be, to be. Let's get to a mad dash. We're going to talk a little crowd strike, of course, the stock, as you might expect. It's not been particularly strong after the global outage. True. But Champion Morgan says, crowd strike, delivering a masterclass on an incident response. They liked that one. B.S., short-term pain priced in, room for upside. How do you like that? And then, Morgan Stanley has done key takeaways from global resellers. They like it. Wow. There's a lot of people calling the bottom that George Kurtz, even though he looks hired. Remember, George Kurtz has raced for 24 hours. He's probably the number one racer in our country for Formula One. No one talks about it. He won Sebring for him to say. So people say he looked hired on today's show. He always looks hired. He always has the same jacket on. People want it. They want Dan Ives for heaven's sake. But I do like the fact that he personally has gotten in a level of an incident response. They screwed up. Well, he called me at 6 a.m. a week ago. It was Friday. I was off. He goes, look, there's a release out. It's not very good. So I called him back and he says, it's horrendous. And he goes, well, I thought that you would make that judgement. Well, then you brought him on, and we had a pretty frank discussion with him at that point. What does that all mean? All right. The stock's down 32% in a month. Well, is this the bottom for it? I mean, obviously Wall Street. Yeah, I think it is. Now it seems to be rallying to its cause to a stock. Yeah. I think it's the bottom because it offers incredible, look, I thought that the business we go to Sentinel, which has had the stocks going up, and Palo Alto, where the stocks are nothing. But the Morgan Stanley note does talk about fueling the floor, bottom line, we are slightly more constructive on crap. Yeah. Well, look at that. I'm more confident. How do you like that? They were ready. They were. I don't even have to say that. It's amazing. You know what they were encouraging? They had some encouraging partner feedback. Did you know that? I do. So anyway, yeah. I mean, this is maybe not an overreaction because it was really bad. But it does say maybe, maybe George Curtis has really kind of done a great job making everybody feel like, you know what, they're not total losers. They're actually quite winners. Not total losers. I like that. All right. We found that during the break. Wasn't it nice to stand? I liked it. Did you enjoy it? It was a good weekend. Good stretch. Yeah, a nice weekend. Absolutely. Stretch my legs a little bit. Have the podcast. So you would say something about that? Oh, yeah. Sure. You can catch us anytime and anywhere because you can follow and listen to the Squawk on the street opening bell podcast. All right. Let's cat you down to the opening bell here. We've got about a minute and 20 seconds. You know, when it's you and me, obviously we always miss Carl. Of course. We always like to do key to this market. Take us way back to the old days of Squawk Fox when you and I and Mark Haynes, Joe Kernan, and I would ask you that same question. I debated Apple. I thought about 3M, discussed in my brain and video, and I come back with Tesla because Adam Jonas, who unceremonus, he gives Ford the Buddhist's top idea, he says, look, the worst is over. Time to buy Tesla. It seems pretty good. The other things they're doing are good. Solar's good. The robot's autonomous, so he blushes it. And I think that that's going to have staying power because there are people who just do nothing but want to own this type of Tesla. There it is. I mean, the guy has been just wrong, he's been wrong in the relevance of it. Why would I listen to it? He's always worth reading, but why would I listen when it comes to whether a stock's going to go up or down? Why did people read Melville still, because he's Melville, right? Melville still did. Why is Tolstoy still read? I mean, you know, now he's acting like he nailed it. Jonas is similar to Melville, but why is Steven King still read? Sometimes he's scary, because I do not. No, he's a thoughtful guy, and he's been waiting for him to reenbrace Tesla, and he's reenbracing it in a way that was very cogent. I happen to think he's a stole market mover like none other. All right. Let me do the honors here about what we heard here. Of course, that was the opening bell. Doing the honors, the alternative investing firm, King Anderson, celebrated a recent IPO at the NASDAQ, financial services company, Alleras, that's celebrating its fifth listing anniversary. Well, that's a kind of stock. David, can we explain to people that when they say small cat, that is a completely fatuous thing. What they're really doing is buying an index, because if they look at the stocks they're buying, they would hate it. Yeah. You've made the point, and I think the point has been made by others as well, the quality of the company's small cap companies is often lacking in terms of profitability. Correct. They're indebtedness is higher oftentimes. One reason why they do benefit when rates come down, the feeling is that they will potentially benefit either from an upcoming refinancing, or for they lucky enough to have some floating rate debt. But there's NASDAQ. There's NASDAQ. The quality of the companies overall is not as good. Right. Let's look at the SMH, which is the key indicator, that's the key ETF for semis. Well, the top ones are Nvidia, Taiwan, semi, Broadcom, Texas Instruments, advanced micro, okay? But the bottom ones, universal display, let's leave that out. Corvo, pterodine, skyworks on, all recommended today. Those were all recommended. Upgrade. Every one of those, right? So people are saying, listen, you know what, I'll recommend the smaller semis, and I'll avoid the larger. And that's what's happening, even though the SMH, Mo, today, how long will Nvidia really be up 52 cents, so before he, she can missile locks that one down? Although, remember, you are up against the seminal, uh, piece pipe smoke between him and Zuckerberg. Although they've been defending for a while. Janssen. Janssen. Janssen. On the rotation, uh, I'll reference Lori Calvassina, frequent guest here from RPC. Yes, sir. I always like to listen to Lori. Right. Well, some room to run on the short term, but also still think whether a durable, multi-year leadership transition is underway remains to be seen, not particularly, um, helpful, but that's what a lot of people say. Is there something that you would see, Janssen, that would give you some confidence that this rotation, this historic rotation actually has legs? Well, I just think that I look at it the other way around. The other stocks move so much that it really is great if the market broadens out and starts embracing skyworks. If you take skyworks, you take, I'm focusing on the semis because they're, they're, uh, uh, top of mind today. Yup. You, you take a skyworks. I mean, yes, because 66% of its businesses with Apple, people have hated it. Right. Well, that's not right. I mean, it's entirely possible that Apple does well. There are people who are writing about Apple and what's going on with the, with AI. Well, let's talk about that for a moment because you're referencing, I believe, a Bloomberg story. Um, and I'm looking for it here in my pile. Here it is. Uh, where they essentially say that, you know, these features are going to, um, come a bit later. Now, Apple, it's part, by the way, never said anything about when they would come. No. So it's not as though they're delayed per se. Yeah. I mean, we always stop putting words in Apple's mouth. I mean, that said the idea being perhaps that they'll make Apple intelligence available to software developers for the first time for early testing as soon as this week. And then that's a typical, they don't usually release previews of follow-up updates until around the time the initial version, the new software is released. Right. That's not in the stock, if it's true, except for the fact that that may have been some whisper that it was ready. I would point out that if you really are an Apple on, Apple onia, whatever you want to call it, then you really just say, Oh, good. It stretches out even further. Helped through it. So don't bet against Apple here. Apple is one of the, is the Mag 7 that is the best position because they seem to have get away. They're like a free rider here, David. They're a free rider because everyone all spends a fortune on data center and they say, Hey, you want access to our billion people? Give it to us for free or maybe pay us. Right. So, I mean, you may look the way you, if you want to pay, play overspend by Apple because they're to your point. When people understand what I just said, certainly they're spending, but nothing approaching. They're not on the data centers and on the chips in the same way that, that Microsoft is or meta or Amazon. So when the stock goes to 230, you're going to start hearing people talk about what I said. It's an interesting point. And then it goes free rider. They're free rider. Yeah. Don't you like that? Yeah, it is. Well, I came up with it on Sunday. So what they are like, okay, you develop the, we'll develop the apps. Well, you know, the new software, the phone will be capable of doing it, but. Exactly. And not only that, we're going to put some commercials in on their Amazon, but I mean Apple Plus, which is, I like Apple Plus and then we'll get all these new apps that are a generative AI design and we'll get 30% of the revenue for not spending any. But look, I mean, for all I know, the make it a face off like the NBA and listen, you, if you pay us acts, you just turn the tables, you pay us acts. We will use your GPT. Meanwhile, Google, the gang, the couldn't shoot straight. Now we've got open AI coming after two percent, you know, everyone likes to be. Now look, cheers of Alphabet are recovering a bit, to your point, they were down the last two sessions, I believe Friday ended lower as well, Thursday, certainly, on this news of a chat GPT search competitor. I mean, look, everyone's working on everything. I mean, Louie's working on a Viking killer, Viking's working on a Novo Nordiska, I mean, except the fact that everybody's working on something, it's against everything else because the markets are too big. It's too big to not be in artificial intelligence, it's too big to not be in GLP. Look, I have a surprise, Bristol Myers, which did a very good job on his call, did not mention that they were moving in weight loss, they only mentioned the moving in the skits, skits and products. Well, we do have any number of other companies that continue to focus on it. Now we don't have a reason to kill Broge, Pfizer, Pfizer could go by bike if they wanted to. Well, they could, they're trying as well. You know, I did notice Lilly was down last week in part just because of the largest market cap companies. Period. That was the reason it was being sold. Thank you. This is not a Mag 7, okay? It's a big cap into, and it's not even into small cap, it's a big cap into like a big cap. It's an eight, almost one. Now it's not. Thank you. It's worth more than 500 million. They're going to spill you in. They're going to slice and bill out of you, a billion here, a billion there, kind of like Turks and maybe they slice 100 billion out of you like they did with Lilly. And you're just very vulnerable if you're over that level because what happens is people say, you know what, this is going to have to sell and move into stuff I don't really know by using the index. That way I'm going to have to get my hands dirty. That's what's happening. How about in the takeover world? What about the takeover world, Jim? Did you see? Tell me. There was a downgrade. A downgrade of your brother's discovery. No, I thought this was really, no, bear with me. No, Warner Brothers discovery? No, no. We're not talking about it enough. No, no. No. So Morgan Stanley says, this is what I want your wrap on. Okay. But fundamentally, Warner Brothers, long-term earnings growth potentially is likely lower without the NBA. Does that mean that Comcast would be above with the NBA? Depends what you're paying. It's a different story over everybody. Well, there are a lot of people who think there's no level that you can't pay for sports. I just... Well, David Zazlop disagreed and he got into a price negotiation, ultimately, that went away from him because there was a bitter willing to pay a good deal or at least more. There is a lot of them to ask from the NBA to Warner Brothers discovery during the their exclusive period. Now they're going to be in court, of course, as they did finally file that lawsuit that we told you we had been filed but was made public late, later on Friday afternoon. People can read the complaint. Well, I didn't get discussed shortly. We'll wait for the NBA to respond and we'll see. But there is a kind of sense. You know what? We're all going toward the hyperscalers, to the mega together. Let's just... I just thought that the NBA really wanted Amazon. They kind of just... Why do they... I think that's true. Charles Barkley agrees with you. Yes. You can get that money from Amazon in the same way like everybody wants... Everybody wants Netflix to have the Christmas day games. Yeah. By the way, remember the fans? You're really going to get to the point though. Listen, by the way, Netflix, you know, you've got a regional issue there where the networks air different games regionally. It'll be more difficult in some way. I believe for Netflix to take the package that CBS has, for example. Not that that's going to happen. Remember, this all opens up in 2029. By the way, as part of the Paramount deal, it is worth noting there is a change of control provision in the NFL agreement with CBS. There you go. Now, what I'm told is it's not worrisome at all for the potentially new owners of Paramount. I assume similar... But, you know, may require them to either up the ante in some way for the NFL or help with production for the NFL network. There may be something, or there is likely something they're going to have to do, but they're not concerned that the games are somehow going to go elsewhere as a result of this change of control. So it's not jumpable. It's not jumpable. That's not the belief. It is a slight... Could you imagine, though, if you just bought Paramount and you lost the NFL? Well, that would be really suboptimal, for heaven's sake. That would be really suboptimal. It would be poor. A poor outcome. Yeah. That would not be. Speaking of that area, which we all love, Disney shares are up a bit. I mean, they've been doing really well at the box office, Jim, this Deadpool, Wolverine movie. Well, you know what you mean? I actually saw it. You need to come focus this. I couldn't follow any of it. But it was funny. It was funny. It was funny. And people like it, apparently. Super funny? Were you laughing at the answer? Well, I was like, "He's very funny." Ryan Reynolds is very funny. I love him. He's been delivering a lot. I love him. He's also got great products. Right, incredibly well. He's got a man. It's done very well, as of course, did Inside Out 2. They've had real success at the box office, which they would say powers so many other parts of the business. Not to mention can have a positive impact on your streaming service because it may actually mean you don't have to spend quite as much on new content given the demand for movies like this one. But that's the case. Why is the stock only a 50 cents, which, frankly, is pathetic? Well, I would turn to you for that. Well, because it's a hate stock. No, it's a hate stock. It's a hate stock. It's a hate stock. Okay, so it's a hate stock in part because they have no CEO in part because... Wait, who has no CEO? Well, they had no new person. They're like Boeing. They should have Molinkop in there. I just thought stepping down for years still. That's a while away. I'm just saying that... Calhoun stepping down soon. Oh, he's got to find something. Well, look. I'm just saying that I would expect the Disney to be up a dollar in a hand because on those strong box options you just said, which is that the flywheel, okay, the cruise ships, characters, you have games, characters, cruises, epic games, you go on from there, right? And of course, the impact on streaming. So you think it maybe is underplayed by investors? Oh, look. Stocks up 1%. What we need to hear from you, Johnson. Let's see if I... I say that every single time just to see if y'all are going to get a rise from you. Why? I don't know. Why? Well, I've got other things to talk about. Please go talk about them. How about this TikTok data collection Justice Department issue? Data collection is a national security threat that the Department of Justice said. That's where you went. TikTok data collection. TikTok rates. A non-public company that apparently is not going to get shut down or maybe it will, but if Donald Trump was at one, then I thought it was interesting. It is interesting. It is interesting. No, I'm done with that. I said it. I'm switching to Builders first. Maybe you would have a positive impact if it did get shut down on the likes of Meta, for example. I moved on. Forget about it. I moved on. It was just something I wanted to talk about. How about Howard Schultz opposed his Starbucks set? Yeah, no, let's talk about that. Let's talk about Howard Schultz. Come on. You love talking about Howard Schultz. Well, I choose a little more. This is an F.T. story. Well, I've been trying to get some sincere Starbucks reports this week, right? Yeah, you don't like Starbucks. Are we... Is there a chance that we get some sort of a settlement between Elliot, a large shareholder there? Well, known activists. I think that's highly unlikely. And Starbucks or... I don't know. We've got a while here. We've got a wild here. It's unclear why you settle now. You've got some time till the window opens and everything else. Yeah. Well, tomorrow Starbucks reports, and it will be very telling because they have China, which, of course, is like, Heineken took a charge of China, and some people like that. But they also have... They have labor stuff. I know not about that. And what... What would you like to see? Would you think... I'd like to see a cheap cup of coffee instead of a $9 cup of coffee. I'd like to see throughput. I'd like to be able to get out without someone from the... Who did an order, you know, would pay your order and just get in front of me. I don't like that. I don't like that. Someone cuts in front of me. I mean, literally, I used to get coffee for everybody. Now I say, "Listen, someone else gets this. I'm not going there." I'm like blue-bottle-ing, at least they say. But whenever you'd like to see Elliot in some way prevail by putting one or perhaps even two people on the board, you're not going to get me an answer. I'd probably like to put like eight people on the board. Should Howard Schultz be involved at all? I think Howard... I mean, he's a significant shareholder. He is, but not on the board. But I think that Howard would tell you, you know, what that's not the game plan. That's not the game plan. There are a lot of ways you can win here. If you do... I mean, think about all the things that you go through by now, mobile, if you've got all these things working. I mean, I know, David, you're going to laugh at me and I don't really care because it's never meant a thing to me. But Cracker Bell was the one to show last week. Okay? You were right. I am laughing at you. Laughing at you. Laughing at me in some way. And Julie Messino was on. Yeah. Sorry. She's talking... I'm listening. She's talking about a two to three-year plan to handle the pickup, handle the redo because you know the old staple of the apple pie with a slice of cheese on it and then ice cream. It's no longer front and center. Now, during another day where I just didn't think as much about... I wasn't as weight conscious. That was my staple at the Clinton Cracker barrel. They knew to bring me... No, too. Yeah. The American cheese, David. That's a, you know, less than a billion dollar market value. Well, that's what people... Oh, so in other words, I shouldn't have brought it up. No, it's fine. It's fine. I've been to a Cracker barrel. Don't say that. I have. Don't bother me. Stop lying. Stop lying about my record. I'm not lying. When we were reporting the Worldcon documentary 20-something years ago, I went to Cracker barrel a few times. What was the section? Just a silly thing. I'm trying to remember. All right. Listen. Don't you... You remember everything. I don't... Colgate. No, I don't want to... I want to talk Tesla and Ford. I want to come back to the key to this market. And Jonas. Because Jim Ford shares it down another three percent. Well, that's cool. Relentless. That was a horrible quarter. Okay. Now, I don't want to... I think that there were two things about the quarter that were terrible. One was that it was a horrible quarter, and the other was that they thought it was a good quarter. Yeah. So the insult... Explain the disconnect there. Is there cognitive dissonance for someone? Well, because they're kind of not acknowledging that they have a real hard time. I'm making cars. Because the warranty issue, you know, pick up a Mary Barra piece and see that they're warranty issues. She's the CEO of GM and is doing a remarkable job. Yeah. Although that stock also went down sharply on earnings that were. Well, yes. They were because I think that in the end they're still losing money on EV and China's no longer good for them. Plus, everyone's worried about the China threat, the existential China threat of the cheap cars. But no. Ford was terrible. He found it notable. Ford management spent far more time on his conference call discussing EVs and Tesla did. Well, there's so much detail about how much money Tesla's going to make from just selling zero emission vehicle credits. Yeah. That was true. Autonomous. It was interesting that whoever's the piece in... Oh boy. Tretinoos have tea. But why Musk doesn't like Biden? Yeah. And all goes back to that original summit. The union goes back to the union. Yeah. The president's like Normaret. Is it ringing the bell? I like Normaret. It was a good movie. Maybe join the union. That's how we feel. Right against Chapey Stevens. I thought against Chapey Stevens and we succeeded in wiping it out. We were so successful. All right. You know what? We're almost done going through stocks. Is there anything you'd like to add? Now I give you free reign. Yeah. This castle that my wife's looking at is a million euros. Okay. That's great. It's in Ireland. Well, she is the poor grandparent she needs to be Irish and she's lucky. Yeah. Aaron Gobrah. There you go. Okay, partner. All right. Show's going to be from Ireland perhaps at some point. Oh wait, me not to guess. Yeah. Andrew Rothstorkin and... Not us. Oh, not us? We're... Oh man. I'm going to have my own wing in that castle. Well, it hasn't been built yet. It's only needs the inside needs to be kind of made for major production. It's like a major production. Oh my God. You're 19th home. Thanks. All right. Let's take a look at the bond market before we take you to a quick break here. Check out how treasuries are fairing this morning. I've been talking about the tenure. I mean, it's below 4-2. Still there. You can join us here. 4-1-1-6-4. Jonas, 30, no. He's doing something else. He's writing his next report. Yeah. Absolutely. All the man does is right. He's the most prolific writer I've ever seen. No. Dickens? He may not be right, but he writes a lot. Dickens, Stephen King, and then Jonas. Correct. But we don't have to read Jonas in elementary school or in junior high. It's so great about that it is. We'll be right back. Let's get to stop trading. Glad we had time for Abbott because we didn't get to it yet. What was interesting was that when Robert Corb was the CEO on our show, remember he said he talked about this right up front, saying, look, this is front and center. The stocks given up to the game that had last week in large part, that game was because we believe the Dexcom, which had a disastrous quarter, losing share to Abbott on diabetes, devices, Google sponsor, but David, I would point out that a $500 million verdict will not probably stand. It won't, but it's for this is for the infant formula for the specialised formula and they lost. And it was a big... No, it was a gut punch as the legal counsel said. I would point out that it's not shocking because Chris let over a record of bank users had the same problem. So the difficulty is that they make $9 million, they have $9 million in revenue for the product Robert Corb really is talking like, look, the FDA doesn't want us to pull it. But it's kind of a catch 22, don't pull it, then they keep losing lawsuits. Yeah. If they pull it, then they keep losing lawsuits. So they obviously need help from someone in the government and I don't know how that plays out. I do know that they could lose every case and still be able to handle it. But that was at St. Louis, which is the worst jurisdiction in the country for the defendants. If you remember that the plaintiff's prevailed against J&J in ovarian cancer on talc in St. Louis and that was the straw that broke the countels back. What's on the big show tonight? Okay, people worried about let's say athleisure, looking for Sarah Dunceer, and just kind of outdoor sports and we have Columbia, which has really good technical stuff. I love their performance fishing gear, but it's been a real disappointment. So let's find out what the heck is going on. Okay. We'll do that. Yeah. Back tomorrow, you just kind of... No, I'm here all week. Really? Yeah, how about you? It depends. Depends? Yeah, it depends on the morning. No, I'll be here. You will. It's a big week. It is a big week. You do it. I don't know if we mention that. Big week. Big. Not just... Big is big week in World War II, but it's still big. Take a quick break here. Of course, we are up in the overall markets as the S&P and the NASDAQ both have gains right now. We'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. So stop by your local store today for everything you need to be unstoppable.
