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Good Monday morning, and welcome to Squawk on the Street. I'm David Faber with Jim Kramer. We're live from post nine, of course. The New York Stock Exchange. Carl Cantonea is in Paris at the Olympics. Let's give you another look at futures. You just heard Joe and Andrew talking about what is going to be a significant sell-off when we begin trading 30 minutes from now. And as you might expect, of course, that's where we're going to begin the show. That global market sell-off stocks are set to tumble at the open, amidst worries about an economic slowdown. This follows Friday's weaker than expected jobs report. The Nasdaq, by the way, already is in correction territory, heading into today's session. And overnight in Asia, one reason why we're seeing this global sell-off. Nikke plunged. Yeah, that's true. That was the biggest one-day drop since Black Monday back in 1987. A day that Jim and I both remember well. We were both working back then. So we've been through days like this. I don't even know how many times. Not to mention the global financial crisis. I always want to put these things in perspective. Japan was unique in a way, though. That kind of a sell-off specific gem to the end carry trade, to what has been a significant appreciation in the end as a result of that rise in interest rates there to try to combat inflation. We'll talk more about the connections there. But give me your take on this morning and what we can expect. I think that when you see the Dow and Nasdaq decline by a percent every hour, lockstep with Japan, I don't think you can therefore say, "You know what, the problem here is the data center slowdown." I mean, I don't want to ferment problems. There's enough things that are wrong. I don't need to make up anything. But this is often Japan. And we do have treasuries in a kind of a weird spot where when deals plummet we all think that there's something wrong. We got to take a breath here. I mean, the idea that we're in a recession because the Fed didn't move a quarter point, that's a factuous analysis. The idea that the data center is a black hole and everybody who spends on it, that's not reasonable. The idea that you can just go buy it, knowing that these forces that you can't see might still sell, whether it be Buffett selling more Apple, who the heck knows, or whether it be the Japanese coming back in tomorrow. You have to deal with that if you're trying to buy something. The idea of buying something is not a bad idea. Right. Because there's a lot of stocks that will not deserve to be where the future is taken this morning. I would add, you know, in making the round of calls to that group of people that I often call on days like today. I'm not hearing any dislocations in credit. That becomes very important because we always want to make sure in the sense of, all right, is this spreading in a way that is even more concerning? Nothing in terms of credit. Liquidity is very high. Obviously, in a way you've already got financial conditions easing, right? Sure. As a result of what's going on. And then that question, of course, is to what the Fed will do. There are a number of people popping up today, said emergency meeting, emergency meeting. And then I'm curious to get your opinion because there's the division of, would an emergency meeting be good? Or would it scare people, scare certain market participants if it were to happen? Maybe they're behind the will. Not the man. Listen, Professor Seagull. Listen, Professor Seagull, all my life. And I thought that he was, let's, I don't want to judge anyone as good as he is, but I would say he's too adamant. I think that the people who are reacting to the stock market going down are people who are not in touch with what you and I have seen over the years. This could be more like '97. Russia, it could be like '98. It could be South Korea. We can react to them. It could, there could be a hedge fund that's on the wrong side of the Japanese character trade, which we can discuss. But remember, you're selling stocks equally. And not all of them deserve to go down equally. Right. Yes, I do think that Intel contributed greatly to the problem because people still remember Intel as a great company. It's not, okay? That's okay. There's a lot of companies that is not as good as they used to be. But the idea that we sit here and we judge Nvidia as the reason why things are bad because there's a publication that comes out and says things are late when I go back to my July 9th notes of what the company told me and what the company told me is exactly what they're saying now. Look, I can create the fact that maybe Buffett knows something about Apple that Tim Cook doesn't. I'm not going to do that. Right. I mean, Apple's a free rider. They get all the AI they want and they're not suspended. That's great. You're mentioning... Let me down as much as... You're mentioning two of the key news stories as well that we're going to be focused on... Oh, which is important to distinguish. ...with this sell-off. One being just an idea that Blackwell chips are delayed in some way and another, obviously, that man right there. I mean, it's still the largest position at Berkshire, but it's not an insignificant thing when Warren Buffett decides to sell half of his Apple, which he has already happened. Right. Well, but we don't know whether what's his positioning. We don't know what his company's knowledge of Apple. We do know that Berkshire now has $272 billion in cash. Right. Next clip of... Look, anybody who bought Apple because Buffett bought it, what are they saying today? They're saying, "Wow, how is the quarter? What happened?" I mean, you've got to go in and say that you've got to look at the MAG7 first of all. It's not MAG7 yet. By the way, what is your point on it? He sold it before the quarter. Right. I mean, he sold it before the quarter. Right. Which the market reaction was positive to. Now, we're coming off Amazon, not a great reaction. Meta was pretty good. Right. I mean, we can go through them all. Well, that's the point is that we have to... Mix bag. We have to say mix. Mix bag, right? Yeah. Amazon... No one buys their idea that's selling on a day when the attempted assassination of Trump or that the Olympics are holding sales down. No one's buying that. Except for me. Really? Because I know... Come find them. Don't you usually sit there with watching stuff, by the way? Right. Just a very quick... The Olympics are amazing. Did you watch the... They were... I am not. I'm not. I'm watching both the Olympics and then the highlights on Peacock Anthony. I asked so. I asked so many kids. I asked so many kids. You know what the gold zone? You know what the gold zone? The Olympics are great. They're unbelievable. How many times do you want to get to Carl from Paris? The milk on the chocolate milk on KF's. I've seen that video. My friend Jon Ledecky from college. Yeah. K. Ledecky is incredible. But David. I think the 1500. That was amazing. No lies. Anyways. The Olympics are great. Let's get back to this. Let me just say... Why would prominent people at Amazon who might have known for 20 years? Yeah. Bagby. When they'd never bagged. What happened did they suddenly say, you know what? They were manufacturing a lot of satellites for project paper. No. They did have a bit of a slowdown in sales. But then they had a great speed up. That suddenly beef doesn't matter in Amazon web servers. Which was the only thing that mattered in... All right. Two memories to go? By the way, you know, it's not as though Japanese investors don't own a lot of these stocks as well. They own a lot. And that's what I'm looking for. There has been an unwind there, as we've said, of great significance in terms of that yen carry trade where you can borrow in yen. And then you buy dollars, buy a basket of AI stocks, right? That's what I think happened. And so when the yen goes up, because the rates go up, and this thing all unwinds, and you get margin calls, you sell. And you don't just sell there, you sell here too. You can't get a bounce because it's not... It's not us that are causing it. No. And if they come back and keep some... But you went selling, you went out again. You had some big stocks though, and Tokyo Electron down 18 and a half percent. Samsung, by the way. Samsung was down 10%. Well, I mean... Hi-Nix. TSMC. They've got some real bad holders there. Largest companies in the world. Well, they got large again. It's funny that when Japan topped out, like it did in '89, it's... Yeah. But we all have to deal with the Japanese sell-off. And it's causing, like, the Korean sell-off. Remember the Tigers? The Asian Tigers sell-off? Yeah. And we didn't even realize, people first let those were like Asics or something, you know? And then they come back and say, "Wow, this thing is really bad." And then it turns out that it's not really bad. But, David, there's a process to every sell-off. Right now, you'd be buying without knowing what's really causing it. It's not a video, it's not a monster son. There's something else. There's someone who's kind of broke or something that we don't have to do. So you buy here, you get the bounce, that's great. Then you have to scalp it as we find out what's really going wrong, and then you get the real bounce. But that's typically the process. I don't want to be too clinical, because there are a lot of people right now who are very scared. I am not telling you that if everything goes down at the same price, it's not real. We've seen so many days like this. And often in August it feels as though we typically get a data like this. Yeah, because there's not a lot of players. But again, for me, credit's fine, liquidity's fine. And then earnings. I mean, our earnings fine, I guess, is a question. As we are slowing, there's no doubt about that. And we do have a lot of questions about the consumer. Certainly coming off a much weaker than expected, jobs number on Friday. So the economy's still creating jobs. If we get a couple of strong numbers, people are going to say, I see why pal, it was reluctant to cut. I'm not buying into the 50, 75 emergency bases. It's going to be like, wow, are you kidding me? But I like, let's remember certain things are going well. Oil coming down. I mean, maybe the oil's true prices without any war premium is 65. Very anti-inflation. Yeah, that's one other thing we haven't mentioned this morning, which is the possibility that oil's going to undertake a very significant strike. It is telling everyone. Well, they say that they're going to. In the near term against Israel. Why are they saying they're going to? That can't be helpful for-- No, it's not. Anything. But where would oil be without Iran saying those things? I'm sure I would be very well. I think the banks are really interesting here. Why? Because I don't see a huge wave of defaults. We didn't get that in the last quarter. And you don't suddenly-- things don't turn on a dime. You don't have like Capital One saying, well, we're fine. Then Capital One come out and say, we're not fine. That's just not how it works. JP Morgan's fine. Do you want to buy JP Morgan? I don't know. The stock was lower after they reported two quarters ago. I'm looking at what stock's-- What about Buffett's all in Bank of America? Concerning it all? He's selling consistently. He's got a huge position. Bank of Merck was the best in large caps. In terms of earnings. It sells at 10 times earnings. I like 10 times earnings. You can't let Buffett rule your thinking other than the fact that he has the ability to reload and knock stock down. I mean, that's the problem, David, is we could have a second leg when people say, you know what? If they're in Bank of Merck and they buy it at 10 times, they hope it goes to 11 times, and then Buffett comes back or sellers come back. So it's a precarious time from the point of view of buying and not being able to scout. You have to scout. Yeah. That's for the business. That said, Warren Buffett having almost $300 billion in cash is interesting. But what does that mean for us? That there's this person that has that? Well, I mean, he hasn't done a large deal in a very long time. Okay, so let's see if he goes into his XYZ or we're then supposed to say, you know what? That's the chance to buy ABC? Not necessarily. I just think it's interesting. We don't know what's wrong with them. Maybe something's wrong with them. With who? With Berkshire. Wrong? Well, I mean, maybe they're trying to pull back and reconsider about what the way they run their money. I don't know. We have a transition that was wrong. Warren is 93 years old. Well, we have a transition. Yeah. So, I mean, I just find that if you do what Buffett says, then you went down, remember, Buffett didn't touch in the Great Recession and got clouded, and then when it came back, that got be seen enough to do it. Even though you would have dodged a 40% decline, which even if your taxes is pretty good. Yep. So, again, I don't want to follow anybody. I don't want to follow Jeremy Siegel, who I felt was saying, "Listen, the world's over." I thought the Goolsbee was calm and cool. He was listening to Austin on the Xbox. Did you like him? He's like a reasonable guy. He's a reasonable guy. He says, "Look, if they can't really see reasonable people..." We aren't going to do what's necessary. Yeah, we'll place some excerpts from the... But I do think that interest rates are scary people. That the two years... I mean, I put the two year, like, last week at four. So you take a look at ten year and double low, three seven... Flip the two year. And there it is, right? Yeah, look at that. I'm flipping the two year. Make a nice cannon. Well, no, we're not inverted. No, but that's not just saying... All these panic moves. You have to let it... I mean, here's what we're doing for my club. We're buying four stops. We're not being big. We probably won't have money in at the end of the day, because what we like to do is sell losers. I can't mention it yet, because then it restricts us. Sell losers to fund winners. Because the jokers sell winners to fund losers. And I don't want to be in a joker comp. Got it. There are a lot of professionals out there looking for things to buy. But they're not squawking, because they're afraid they'll look like dopes if it keeps falling. So you can't do that. I'm going to link a look like a dope and say we're putting some money in work. You know, dope me. I'm like 95 years old already. We're going to have a lot of opportunity to discuss this significant sell-off. I remember buying, you know, about 17 minutes before the open. But let's head across the Atlantic now to Paris. Carl is there at the Olympic Games. We missed you here, Carl, but it looks a lot nicer there. I'll tell you guys, that was a really, it was a great discussion just now about obviously an important and interesting day. You know, just because you have the Olympics doesn't mean you can't have a global sell-off. And just because you have a global sell-off doesn't mean the game stop. As David points out, there are two big things people are talking about. The markets today and the Olympics. And on that front, it was a really incredible weekend between Katie Ledecky getting her 9th gold. Jokovic getting his first gold and getting that golden slam. First man to ever do that in singles. And then of course the story last night was "No Allials." The first American man to be titled "World's Fastest" in about 20 years wins that 100 meter by 5/1000ths of a second. That is 1/20th the amount of time it takes to blink your eye. The closest, one of the closest Olympic races in history. This week he's going to take aim at the 200. That's his best event actually. And if he gets that, he will be the first US man to win gold for the 100 and the 200 going all the way back to Carl Lewis in Los Angeles back in 1984. Just incredible. At first he wasn't sure who won. They asked for the photo finish. Omega, by the way, getting a huge prop because of their high res cameras that take four times the frames per second these days than they used to. It's an amazing, amazing Olympic event. We'll be talking about this one for a while. But guys, we're going to try to keep you honest on the games and the markets. But I'll tell you what, Jim, it's incredible to wake up here, try to look at the metal count, while also reading the meliest note about whether Blackwell is going to impact the quarter. I absolutely like that note. Again, I point out the fact that the company tells me nothing's changed since July 9 and yet the information says something has. I got to tell you Carl, we are just transfixed on where you are. I thought the 100 meters. I watched the 100 meters. I went back to Peacock and watched it over and over again. I did not think that we won that. I swear. I think it was won by a literal pair. Neither of the announcer. It was so great. I've got the Olympics, you're so great. I'm sorry, beach volleyball, not a sexist. Watch it with my daughters. Amazing. The Olympics is incredible. Carl, I really, I watched actually in real time. I made sure to watch the swimming. I didn't buy anything from Anthony when I was watching. I didn't buy anything from Anthony when I was watching. And that guy in the 10,000 fisher, I mean, just incredible. All the stories, incredible. Just the great ones. And so much more coming for you to see this week. Yeah, I definitely thought of you David yesterday when talking to Ledecky, who I'm convinced is the most grounded Olympian I've ever met. Incredible. Yeah. Just fidget. There's no, no, there's, I mean, she is the greatest female swimmer of all time. One of the greatest Olympians, certainly one of the greatest U.S. The miracle on ice. I feel like the country's really down. And this is a miracle on ice for me. Where we were like the main lads and the miracle on ice broke it in the 80s, right? In the 80s for late class in the 90s. I feel like that now Carl. We're like watching and we're saying, you know what, we're not, we're not a bunch of losers. Holy cow. We're not. We're not a country of anger and horror. We all like Ledecky. Ledecky. That gets talked about a lot, you guys, among athletes here, that it is something that can unify the country at a time where obviously things are turbulent on multiple fronts. Yeah. Well, one thing it is going to be losing today is the market. All right. Let's turn to futures. I'm buying Ledecky right here. Ledecky's down 10% because of the futures. Give me some Ledecky. As you say, we are, we are going to be down sharply. We're all over the sell-off and we'll be right back. At Evernorth Health Services, we believe costs shouldn't get in the way of life-changing care and we're doing everything in our power to make it possible. Behavioral health solutions that also keep your projections at their best, it's possible. Pharmacy benefits that benefit your bottom line, it's possible. Complex specialty care that cares about your ROI, it's possible because we're already doing it. All while saving businesses billions, that's wonder made possible. Learn more at Evernorth.com/wonder. 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 Bluehose Cloud, the new web hosting plan from Bluehose, 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 Bluehose Cloud, your sites can handle surges in traffic no matter how big. Plus, you automatically get daily backups in world-class security. Get started now at Bluehose.com. As you see, jobs numbers come in weaker than expected, but not looking yet like recession. You think you want to be forward-looking of where the economy is headed for making the decisions? And remember that, say, the payroll jobs number is plus or minus 100,000 a month, so be a little careful over concluding about things in the margin of error. That was Chicago Fed President Austin Goolsbee giving his take on the economy. That was last hour on Squawk Box. Yeah, I like that not too over. It was kind of funny what he just said, which is that we don't want to over-complicate things either. This isn't a crisis of confidence, not data. People are very afraid. There's just been a huge amount of margin debt that we don't know. What tends to happen is there's something that we haven't seen that's driving things down that can cause a second leg, if you scalp. At the same time, I think if you don't take advantage of some of these prices with the Nasdaq down so much, I think you'll look back and say, "You know what? I know that the Nasdaq was still up for the year, but let's find things that aren't up." I mean, there are now stocks there. Here, let me give you an example. It's still got up a little bit, but micron. Can you look at micron? Yeah. Micron is going to blow away the quarter. There's no doubt about it because they are selling high bandwidth memory, which is there's tremendous demand for. But the stock has just been clogged. So what am I supposed to say? You sell micron here? Right. If you don't buy the price, you have to ask yourself, "Would you sell the price?" Would you sell micron at 87? What, hoping that you get it back at 82? I can't play that game. I can't. It's just, viewers at home can't. What, you know, we look at the bond market now and every note that's coming out. Yes, recession is what you're starting to hear about. At least the possibility of said is increasing. There's no doubt. I would share, though, this, you know, this som rule. Remember that, which is that every two tenths rising unemployment rate triggers this rule that says basically you got a much better chance of a recession. But that's over concluded. But B of A saying they don't happen. That is recessions without layoffs. And those remain extremely low. When we were in the bank, it's where the bank is. And the rise in unemployment rate over the last year reflects high participation in immigration that have boosted the labor supply. So they're not a believer. No, but that's why I say it's a crisis in confidence. It's not data. The data's really good. And I think the idea, by the way, that if the Fed had moved on Friday at quarter point, this wouldn't happen. That's just wrong. It's really out of Japan. It starts. I mean, it is possible. If Japan got big enough that it can have that kind of impact. And it brought us down. I mean, how much, how much more down things should be down here between, between midnight and four? I don't know, but that was a major move in the next. Things that are not necessarily a focus during the course of every day. And then suddenly we're like, wait a second. This yen carrot trade was that big or there were that many people were margining to borrow a yen and buy AI baskets of stocks and dollars. Well, do you say that Walmart where you shop when you don't have much money that that should be down big today? No, you have to pick your spots aside with, I don't know whether supermarket was done going down. But I do know that if I started buying Walmart, I feel pretty good. Pick your mad dash because that's what we've got coming up here. Of course, we are about six and a half minutes. I'm going to do Kellen over later. Don't do that. It's a mad dash. No way. That's off your table. Let's give you another look at the futures though. Of course, we are expecting a much, much lower. I'm going to use too much. It's lower open when we get started with trading about six minutes from now. Don't go anywhere. At Ever North Health Services, we believe costs shouldn't get in the way of life-changing care. And we're doing everything in our power to make it possible. Behavioral health solutions that also keep your projections at their best. It's possible. Pharmacy benefits that benefit your bottom line. It's possible. Complex specialty care that cares about your ROI. It's possible. Because we're already doing it. All while saving businesses billions. That's Wonder. Made possible. Learn more at EverNorth.com/wonder. Want a website with that's 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 in world class security. Get started now at Bluehost.com. Alright, let's get to a mad dash. We have an opening bell. Three minutes from now. I'm not going to want to miss that. See where stocks sort of begin. What is going to be a significantly down day. Speaking of down. Intel shares down sharply on Friday on just a slew of bad news. But you want to make that the future of the mad dash. That's you. Because I think that what's happened here is there's been a lot of money on fabs that they don't really have any customers. Part of that is the commitment to the United States. But that's not necessarily what you want when you want to commit to customers. I also think, by the way, David, there really is, I want to be a little diplomatic here. But there's a sense that the company is really in much worse rates than realized. I asked Secretary Ramondo a couple weeks ago whether she was concerned about Intel. No. Some of that's because they have Apollo. Some of us because they have Brookfield. Well Apollo and Brookfield, just to be clear, are partners in fabs. And they provided a significant amount of the capital. Because obviously Intel has been capital constrained. And is even more so, which is why they're cutting the dividend. Cutting back on capbacks. In part because they're trying to get to this day where these fabs are going to be up and operating. And that they can reclaim what Gelsinger says is their rightful place as a leader. Well, I love the attitude. But they don't have the horses. What do you mean when you say the horses? You have to spend a fortune to get these things going. We moved our boundaries to Taiwan because it's much cheaper. He's going full more, Gelsinger, in the most expensive areas. I thought it was comfortable listening. It was, frankly, unconscionable in order to invade Taiwan. Now it would change everything then, right? Yeah, they actually need you. I mean, there's something. But yes, it'd be a safe zone if China. I don't want to put that out there. But I thought it was incoherent in a call. And a lot of the questions were directed into the CFO after because of his incoherence. I don't think that he realizes how big the problems are. And I think, ready? Yeah, I'm ready. I think it's really over his head. I'm sorry to say that again. I think it's over his head. Yeah, because I think you've got Gels and Lenovo and their HP trying to figure out that they need to do a second source. You have Lisa Sue so ready to do anything they need. He missed, remember, in 2009, he was let go by Intel because of his -- he was doing grandfasts. Well, who won in grandfasts, didn't he? So I just think that there's a little history here, but we should not presume that Intel has stumbled. We have to presume that Intel has flat on its face. All right. Get ready. 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Let me refer to a note this morning. An upgrade. Thanks so much for that. Yeah, what can you do? It's so biased. Yeah, I know. BNP saying we assume an acquisition multiple would be roughly, let's call it down, a 5% discount to the average of the current trading multiple monolies. Hershey, acquisition multiple that Smucker paid for a hostess. By the way, that was 18 times. Oh, my God. I created that deal. That was 18 times. Who did they ever made? Why, if you get anywhere near that, you're talking anywhere a range of 90 to 105. Again, that is those who own the stock and would love to see deal. Average, I'm told this is about 16 times in terms of these deals. But again, that gets you to a higher stock price than where we are right now. And any number of notes this morning pointing out that Mars could do the deal. Any trust would not be an issue and that they have the financial wherewithal and the interest in food as well. Remember, they've also been very big in pet. One of the largest private companies in the country. Yeah, so we'll keep an eye on this if the deal does come to fruition. It would be one of the largest we've seen, not just in this particular industry, but one of the largest we've seen in the year. I think what it does say is that people are not really not concerned about GOP-1. I know the Mars people, they're very strong. And they might just say GOP-1 does not influence us because the Kellynova mosaic of snacks. If I were you, I'd be saying, "Listen, let's short Kellynova." They don't do that. They don't do that, okay? And Warren Buffett's a genius. See, I'm covering my bases. Warren Buffett, this is genius. Warren Buffett, this is genius. And with that, I saw the chocolate milk. It's real. It was not that dumbbell. That's been around for years, the chocolate milk video. I'm just saying, she's incredible. It's just so funny. It's just so funny. It's just so funny. Who is Warren Buffett? The carry trader in the video. There you go. Who is Warren Buffett? Who is Warren Buffett? It's the call for what? We have big self. I know. It's the carry trade. The carry trade, yeah. Yes, it's the end. It's the age they are calling for us. It's the age they are calling for us. It's the first to identify that linkage for our own markets. All right, services PMI was services the months ago. Services PMI? And Rick Santelli has those numbers for us. Rick? Yes, Dana. These are the July final reads from S&P Global at the top of the hour. We're going to get ISM's equivalent. And our mid-month read on headline services for S&P Global was 56.0. That gets downgraded to 55.0, which makes us the weakest month over month level since May of this year. And if we look at the S&P Global composite, the composite move from its mid-month read of 55 to 54.3, weakest since April of this year. And just a quick run around the markets, wild day for sure, 2s 10s spread briefly moving positive. It's back negative a bit. If you look at 10s versus boons, the distance between our yields and European yields was the closest. The narrowest on that spread since S&P of 23. And finally, should we close right at these levels and be about the lower yields? We popped up quite a bit. Right now, 2s are down a dozen basis points. They were down much more. They were down 20. And if you look at 10s down 17, they were down much more dramatically. Should they close here? 2s would be around a two-year low yield close. 10s roughly since June of last year. But everything's moving quite aggressively. Maybe the most important issue is through all this turmoil, just think. Tomorrow, Wednesday and Thursday, we have auctions of 3s, 10s and 30s. It's going to be a wild week in the treasury complex. David, back to you. Yeah, it's already been a wild week. We're going to talk about CrowdStrike. We're just going to let that one go fallow. Well, clearly we're not. Tell me what your thoughts are about CrowdStrike. I think that George Kurz has really kind of given you a different narrative from what Ed Bastions give you from Delta. I know that George and his team went into every single airline, every single customer that was actually heard, and said, "Let us help you." Okay, we want to work with you. We'll do everything we can. And Ed Bastion did not take their email or call. Everybody else, the top guy, did. So now Bastion's saying it's 500 mil. And I have not talked to Bastion. I'm just saying that what I've learned is that they were intransigent in that left so the CrowdStrike couldn't help them. Now you can say, "Well, CrowdStrike, they're a bunch of knuckleheads," whatever. But no, the fact is that given the fact, I think it actually makes it less of a likelihood that Delta goes after them for everything. And that's one of the reasons I think CrowdStrike's down less than other stocks in the second. Right, of course it got crushed. Yeah, but it didn't get crushed again because George is... She's 5% a month. Indicated that maybe he was more forthcoming and that perhaps Delta did not avail itself of the remedy. And then they hire boys and make a lot of noises that perhaps they'll sue for, there's $500 million lost. And I'm not feeling as good about that case. If I were boys, which I most certainly not, or am I buffing, who else am I not, I would say, you know what? The case isn't that good. Boy, boys' track record is a lot more mixed than buffets. Mixed. A lot more mixed than buffets. Yeah, I would say... I would say listen to me, Mr. Theranos. I'm sorry, Mr. Delta. Thank you. I think that what you have here is a case where you didn't kind of tell us that they tried to help and you didn't take their call. Now, at Bastion said, "I've not taken their call." But all that kind of use all the curse words and stuff like that. Sure. But no. I mean, in the end, it does hurt their case. Bitcoin was supposed to be a... Bitcoin took that to be not as good a store of value. A store of value. A store of value. A store of value. Yeah. Would it be safe in Bitcoin? Would it have been the thought that perhaps John Book, that is not the case? Well, it just turns out that a gold... It's connected. I had a Nico Eagle on this week. You had a hoot, a what? A Nico Eagle is a big gold company. Oh, okay. And they're in Canada, which is actually not that dangerous place to mind. Yes. And what it comes out is that their stock has been a total winner. And they're very adamant that when things go bad, crypto will go bad with it, but gold won't. Because we've only found about 1% more gold each year. There's just not a lot of gold to be found. And a lot of it's in high-cost places. So gold is maintaining its value. And I think that's great. And I think everyone should have 10% of their assets in gold if they can get it. And try getting that out of Costco. It's like really hard. Yeah, I bet it is. I should point out... We bought it while it's still down sharply. Is well off the lows even though... Right, they'll come back to sellers. These are just cowpers. These are just cowpers. Wait 'til 10.45. They'll sell their stock down. That's what they do. They're not bozos. They just make little money. And then you come in at between 10.45 and 11. When the European market's closed, you get a good... Oh, yes, the piece. Cut its losses to below 3%. That's also now below 4% loss. Well, this is cool. Again, at the very open, we were down much more sharply. Doesn't that tell you that those aren't significant losses? But that's the future. Particularly given the performance last week. Right, that's the future. Now, let's take your Kalanova story, which was a theme report that I interrupted. What that says is maybe we have to rethink the negativity. You know, like, Mondalees had a good quarter. But nobody cared because GOP-1. GOP-1 is like a phantom boxer. It doesn't float like a butterfly. It does not stink. I could be. It's a phantom boxer. In a boxer. Yeah, then you have always my class day speaker. By the way, Jim, the one name I have up on my screen is J&J. Well, that's, again, not much, but it is up. That's safety. The brothers Johnson has always been a safe place to go. Yes. Even during the period of town. Yes. The brothers Johnson. Well, that makes me think of Woody. No, he makes me think of him. He makes me think of him. Your jets. Strawberry on. Okay. Then I'll have that. Is Riddick shooting up? Say again. I mean, did they check with House on Riddick before they got him? I don't know. Hey, House on, do you like us? No. I mean, sometimes you want to ask. I haven't mentioned Elon Musk at all other than shares. Yeah, his stock is the only one in the match, Kevin. It's down. That stock is down another 5%. But, again, well off the lows of the morning. Yes. Musk and the non-profits namesake objective were betrayed by Sam Altman, he says. Or I shouldn't say his lawyer is right. And his accomplices. The Perfity and Deceit are of Shakespearean proportions. Yeah. You know, listen. Which ones? When you throw in your lawyer, you're literally going to get to write these things. Some of them... Which ones? Some of them are written very well. Musk and the non-profit attractive were portrayed by Altman in his accomplices. History? People use Shakespeare a ton, they have no idea who he is. They should brush up on Shakespeare. I always say brush up on your Shakespeare and start flirting him now. And the women, you were wow. He's suing him again. He's also, of course, because he's Musk. He's got to talk about the Fed needs to drop rates. You know, you can buy some. He's talking about... Have you checked his stories? He's liking books about how much cash Buffett has. And then he says, Buffett's clearly expecting a correction. Or otherwise, simply cannot see better investments in Treasury. The Fed needs to drop rates. They have been foolish not to have done so already. He's good to have a wide-ranging view. There is clearly an issue that Elon Musk would not feel free to weigh in on. I'd like to know, the 4x100 must knows. Does he know what? He knows who's going to win? I'm just saying that. And who's the vice president? We don't know who's the vice presidential candidate. Is he going to find that out? And how about Tony West? Surfacing my guy. Tony West. My said Tony West would make it so that you'd have to rethink how left Kamala is. I think people should do that. Tony West. We are waiting for the vice presidential candidate of Vice President Harris. I know Tony. He's what I regard as a business person. There was no business person, really, that close to Biden except for Gia Ramondo. So this is a nice change of pace. There's a lot of business people surrounding Paris. If you're in the stock market. If you care about your paycheck, you go with Trump. That's what you do. You do? Yeah, well, he wants to cut your taxes. He wants to cut taxes. Your taxes? No, my taxes got raised enormously as you know under the last Trump administration. I don't know if he wants to cut your president. No, no, no, no. I'm in a blue state. Oh, just want to kill. They want to kill. Your house. I try to reorder. I try to go to me. You want to put us out of business. Measure Pennsylvania. That's what they want to do to us. I can become an Italian citizen by getting rid of the salt tax deduction. All right. All of that has nothing to do with the stock market. So let's get back to these markets with the S&P down three and a quarter percent. The NASDAQ down four point one percent. It's scary. Bob Bassani, will you please talk for a little while so I can just take it to get some rest. Let's everybody. You guys are doing a great job. Calm is always. And that's what we want to see. All right. Which is twenty to one declining to advancing stocks. But we are well off of the highs. We were fifty one nineteen right after the open. That was the low. Low print was right after the open. And we're at fifty one seventy three right now. And as you might think all the growth stuff is getting hit pretty hard here. Most of it we're talking about four to five percent. This was a lot worse twenty minutes ago. But S&P tech banks are down consumer discretionary communication services. This is largely the growth area. The big decline is of course are in the technology group. Super micro is the lead decline on the S&P. NVIDIA Tesla city group there. That's an amazing drop for a city group. We go a long time before you see city down six percent in a single day. Big cap tech all again same thing. Everything was opening down in the four to five percent range. We're off of the lows here with Apple, Amazon, Meta and Alphabet still down big as you see. Defensive sectors are doing better here. So staples utilities health care down one to two percent. Some of the consumer staple stocks are flat to slightly up a little bit as you can see here. David was talking earlier about Mars and talks through by Kellynova that might help a little bit. But you see these stocks are generally fairing a lot better. Considerable damage to the tech landscape. I just want to show you what some of the big cap tech stocks are. Off their 52 week highs which they hit just a month or so ago. Amazon 22 percent off Alphabet 17 Microsoft 16 Apple 14 percent. Semiconductors are worse of course led by AMD down 44. That is not a typo there. Micron is 45 Intel 61. These are breathtaking the clients here and even NVIDIA down 33 percent. I want to comment on the VIX. You've been talking a lot about it guys. VIX is normally in Contango. So the front month is normally lower than contracts farther out. And this is not working. You should see today what's going on. We are in backwardation. So the VIX is at 55 right now. The cash contract VIX. And the front month contract is at 33 and then 30 and then 30 and then 24 in November. This is called backwardation. Is this unusual? It is extremely unusual particularly for the cash to be 55 and the front month 33. So this can't go on for very long. Normally this is usually associated at least with short term bottoms in the market. It doesn't mean it's going to happen today or anything like that. But this is very unusual to have the cash at 55 and the front month at 33 and then 30 here. Again this is known as backwardation. As for where we're going now, what we're happening right now. Remember something. Right now we are in a garden variety correction. We are 10 percent decline from the recent highs would take us to 5100. So we are right on the edge of a garden variety correction. Remember we are still up 8 percent for the year. Another 1 percent decline of the S&P today. That would be rather unusual. I think we haven't seen three consecutive declines of 1 percent or more since 2022. I think the problem guys is we don't really know where the economy is going. Now you guys know there is not necessarily a relationship between the GDP and between stock prices. But generally normal GDP growth 2 percent or so. Typically you get 6 to 10 percent earnings growth. That's a good rule of thumb. You tell me where the GDP is going to go. That's why the market is so confused here. We don't know. If you are 2 percent 6 months from now and you just have a modest compression of the multiple from 19 down to 18 or 17 and earnings don't go down much. You could be not far from the bottom here. But if you start playing with things, if you say instead of 15 percent earnings growth in 2025. That's what we're expecting. That's a lot. You go to 5 percent earnings growth. And instead of a 19 multiple, you go to a 15 multiple which is closer to what people consider a recession or levels 13 to 15. Guys you could be easily at 3800. I drew this out in a trader talk this morning. Anybody wants to see that? TraderTalk.cmbc.com. 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