Trading at Schwab is now powered by Ameritrade. Unlocking the power of Thinkorswim, the award-winning trading platforms loaded with features that let you dive deeper into the market. Visualize your trades in a new light on Thinkorswim desktop with robust charting and analysis tools. All while you uncover new opportunities with up-to-the-minute market news and insights, Thinkorswim is available on desktop, web, and mobile to meet you where you are. It's built by the Trading Obsessed to help you trade brilliantly. Learn more at Schwab.com/ Trading. Walmart Plus members save on meeting up with friends. Save on having them over for dinner with free delivery with no hidden fees or markups. That's groceries plus napkins plus that vegetable chopper to make things a bit easier. Plus, members save on gas to go meet them in their neck of the woods. Plus, when you're ready for the ultimate sign of friendship, start a show together with your included Paramount Plus subscription. Walmart Plus members save on this plus so much more. Start a 30-day free trial at walmartplus.com. Paramount Plus is central plan only, separate registration required, see Walmart Plus terms and conditions. It's Jim Kramer here. You're listening to the opening bell on CNBC's Squawk on the Street. Don't miss a minute of the action. Good Monday morning. Welcome to Squawk on the Street. I'm David Faber. That is Jim Kramer. We're at post 9 at the New York Stock Exchange. Carl's traveling back from Paris. He's gonna be back tomorrow. All three of us barring unforeseen circumstances, of course. Fantastic. Injury. You never know. Stop it. I'm kidding. I was in a game. It's your knee. You come out of the tunnel and you immediately go to the sideline. I know. That's what I'm saying. Anyway, we're all back tomorrow, but you got the two of us today and you've got what looks like, at least to be a bit of a higher open in the market. Let's get to our roadmap as well this morning. Shall we do that, Mr. Kramer? It starts with the S&P and the NASDAQ. Coming off what was the fourth straight week of losses. Investors are bracing for retail earnings. We're getting, of course, Home Depot on Tuesday, Walmart on Thursday. And we got some inflation data as well. Bank of America's Brian Moynihan had a strong message for the Fed urging the central bank to cut sooner rather than later. That is cut interest rates. And we're going to keep an eye on Starbucks, settlement with Elliot, perhaps getting closer. Other potential activists may be in the morning. I want to show what I've got here, which you're thinking as well. But let's start off, as you might expect. Of course, with these markets this morning, after a volatile week for stocks last week, we all know this time last week we were looking sharply down on those futures. We were all becoming more familiar with the end carry trade and what the impact of that was. We started to hear a lot of discussion of recession. And here we are a week later, after what was a volatile week, though certainly ended on a better term, so to speak, for the bulls than it did as the week began. Well, I think you really just caught it. We didn't know the end carry trade. And so when the market went down, we first initially thought, well, maybe it's rates. Then we thought maybe it's earnings. And then we realized it's an unwind. And once it became an unwind, I think people decided to use it for the most part as an opportunity, except for the companies. Of course, it did not import good earnings. And any different in terms of sort of how you see things playing out, obviously, these are long weeks, so to speak, in August, the liquidity is not what it typically is, or at least it can be. So we do see sometimes through the years more volatility in this month. Well, I think that people are looking at what went down that shouldn't have. Still, apropos of the key back acquisition. The banks themselves really did not fare well after Japan, even though they had good courses. It was like we forgot how good the quarters were. So that's to me where the opportunities are. But David, look, I think that there's just endless AI revulsion that has become so packed that if anyone actually said, you know what, I see something good, it might actually trigger something. Because right now, all we know is that AI was much hyped, and maybe it's going to come later, and the Blackwell's late, and that we have no idea how they're doing in a video because they're quiet, and the Dell might be bloated. Thank you, Ben, righteous from Melius. And as far as we're concerned, anything connected to the data center is a sell. And that was the overwhelming theme, even after the yen characterates smoke clear. Right. And that, by the way, that was the theme going in to the yen carry trades. Yes. So it accentuated what went, what was happening, except for the banks, which were doing very well until this. And the banks is what it banks was what credit quality? I mean, I find that a little hard to imagine. I think we made up we had to come up with the reason, no, because it wasn't credit quality is actually quite good. And by the way, David, one of the themes that no one seems to want to talk about, no one wants to stick, wants to stick their neck out. Yeah. Commercial real estate. Albatross to opportunity somehow. Depends on the city. I mean, obviously, every day they can gin up an anti San Francisco story. But it does feel like that whatever was the big worry about office real estate is gone. Yeah, I think that may be overstating it as well. Certainly it's not gone. It's being managed. And the banks are coming to the point where they are willing to accept some of the significant write downs, but they've reserved for many of them. Yes. It seems to be going the way many had anticipated, which it will move along and it will not present a crisis at any moment. Well, put it won't. But it's not good. It's still not good. No, it's not good. I mean, you don't want to invest in it. I still don't seem well, because you can't tear him down. It's too hard. And you've got the tax consequences to make him into residential is too hard. You've got certain metropolitan areas that literally it may end up being that the buildings are simply not inhabitable. Right. And what do you do with them? Go so. Yeah. Go so this is still going to be an issue that we're dealing with true for years to come. True. But it's impacting the financial system. Right. Again, I mean, you can remember, of course, we were talking about it during the mini banking crisis of the spring of 2023. It was all the concern as it should have been. And here we are a year and a half later. Not so bad. Well, I think this the Japanese character kind of wrecked the whole narrative. The narrative was, we're actually going to get to where there's great cuts. And that's why we can talk about about Mr. Bohenhan. And in the interim, we won't be hurt that much on earnings. And then suddenly, we have this tsunami out of Japan, and we start saying, wait a second. I mean, maybe earnings are really in trouble. Maybe Nvidia is not going to make the quarter, which is really, what does this want about? I know. It's about Nvidia not making the correct, but that we still got a few weeks to wait on that. Well, that's the problem. A couple of weeks to wait. And to your point on the AI narrative, changing a bit, wouldn't it have to be that report that conceivably would do that? That has to be Jensen himself coming on and saying, look, I've met with every major banker. I've met with every major industrial member. And the demand is there. And the reason the demand is there is because it's, you get three to four X return, which is what he says, but he's been so quiet because it's in quiet. And by the way, I mean, there's companies that are in quiet, kind of leak things to analysts, even though they shouldn't. And then there are companies that are just a steel vault. Finding out anything about Nvidia, a lot of made up stuff about Nvidia in the last few weeks, just made up stuff. I mean, it starts today at about a two and a half trillion dollar market value. People hate that too. A lot less than it was a lot more than it was, not that long. How about the piece was like, now we know the 1000% game was completely fraudulent. And it's like, no, no, it did that a trillion dollars almost lop though. I mean, the company, she's the market kept to get hit. It did. The multiple, multiple got up there. Right. But remember, this is always a, you have to think about this as a previous multiple. Like you realized that the company is selling it 17 times earlier. And there's been this argument, it gets back to sort of the larger one that at some point they're going to hit a wall or at some point, the spending will hit a wall, not in 2025, certainly not this year, what's left of it. But perhaps in 26 or 27, where the hyperscalers, they're done. Yep. And what is that going to mean? You do a discounted castle evaluation of this company. And are you willing to pay the multiple? And that that certainly seems to have circulated. Right. And that really did. No, you're right. Affected the stock price. I want to ban the term hyperscaler at this point, because no one ever understood. It's like, yeah, in character. I don't know what the hell is that. You know, what you're right. It's like, what is it? Who made that one up? The hyperscaler? Yeah. I just, no. But here's what I see. What do we call them? Well, I like tech titans, which is what they call the rich networks. How about just giant planet eating companies? I like that. It's kind of like Stephen King. Planet eaters. Planet eaters. Yeah. Now one of them, I mean, okay, so listen, the PEs are already taken. Okay, let's just go over what really happened with these companies. Okay. Met I had a great quarter. And it was because he figured how to use that. I don't know if you're using meta AI. I've switched entirely to meta AI. I no longer use chat. I don't use gem and I. I don't use club, whatever. Now you know, I use. Oh, I love it. I love it. It's to see. Oh, my God, it's so great. It's so much better than the other companies. It's coherent. It doesn't, you know, there's no draws. There's no like, what platform do you use it on? In other words, what are you going to use? What I do is I type in meta AI. Okay. It's pretty interesting. It's like typing in, like, you know, are you like typing Google? Yeah. Just like that. You get it? Yeah. And it comes up. It's very simple. I have like three ads that you have to deal with, which you just look at and dismiss. Yeah. And then, like compare, please tell me the Roth IRA versus a traditional IRA. I mean, it is so succinct. And it is so good. I mean, I can pull a million. Please tell me about caterpillar and its exposure and data centers. Tax free on the way out, by the way. Well, that's like, yeah, that's why I always tell you go for. I can be your AI if you want. What was the question about caterpillar? No, I was just saying you could like, I don't know company like, where's David Faber's daughter going to college? I can tell you that as well. She chose certain. She looked at four schools and he said this. No, I mean, what am I supposed to do? How do I demonstrate prowess? I think that what I'm saying is, is that that company had a good quarter. Yes. Alphabet, we have no idea. No idea. Okay. And when I say alphabet, no idea. I mean, like, then they lose this case of which I've done a substantial amount of work on with Apple. Yeah. Well, they lost the case last week. By the way, that was in the mix. I mean, there were a lot of different stories last week, beyond the end of the trade. Right. The Department of Justice winning against Alphabet. It's in a trust case. Right. A big way. Obviously, going to be appealed could be many years, you know, in terms of the remedy and anything else. But they won from saying, it's like Microsoft. They won. Yeah. And then Blackwell, within video, there were any number of important news events last week that kept pressure on this sector. It was very hard to figure out what will really happen. Really? What will happen with Alphabet? But it will take a long time. Yes. But the question was, will Apple be the loser? Because Apple doesn't get the check from Alphabet. Right. And I have done enough digging to say, if you're really worried about that, you're quite wrong. There'll be other people who pay for the default. It won't matter. Well, the opportunity to be on the iPhone. And Apple, isn't the idea that you can't be the default? I mean, that you have to have a choice, a number of choices. I mean, we don't know what any remedy can be. But Apple's not meant to be the default. Although I have to tell you, I thought Jonathan Kinner came in. He was far breathing against the P.E.'s, the planet leaders. The planet leaders. I like that more than I mean, hyperscaler was always meant to confuse. That's like, you know, that's just like risk-bound use of language last week. And he comes up with these things. I offered a few in terms of how the industry wants you to use these terms, and then you end up doing it, whether it be drawdown, which is ridiculous. Oh my god, I've got to draw it down. You lost money, whether it be financial sponsor, or even private equity. When really, you just want to say, guys who do LBOs, they use a lot of leverage, and they get a nice return. Thank you. Because they also can, by the way, tack right off the tacks. By tacks, they're like, rich people do well. I sent you the other day that you want your taxes raised. And that was meant to be that you make a lot of money. And then it got turned into like some ad campaign for Trump. Yes, it did. Yeah, and that was like really impressive, because you see my wife saw it. She's so appreciative. So a lot of a lot of nice time in the household this week. Oh, it was fantastic. Yeah, it was a game changer. Was it? Yeah, game changer. All right, speaking of game changers, anything else that we should be focused on in terms of its market action before we move on to some of the movers system? Yeah, I think that the, I think I love this, and I really want to put this right to you. So Disney has this, you know, god-awful theme park number, right? It was awful. It was what destroyed the court, the operating income. No, Jim, the court wasn't destroyed. You did the court. By the way, reversal, you were positive on Disney a little bit last week in that quarter, and I was the one who sat there and said that operating income number from the parks is going to get people paused. Yeah, well, I mean, so let's just say you're right. Let's just, I'm not, I just just point out. No, here's what happened. You're the one who forgets where the stocks are going to go now. Okay, so what was the weakest part of the quarter? It was theme parks. So what did they do this weekend? They said we're going to spend a ton on theme parks. Just an enormous amount of money. Not buying one in New Mexico, which I, I'm done with, but David of Villains theme park, which would make you so happy because you're such a curmudgeon. I'll go to the happy guys, you go to the Villains. Oh, I love that. Who is it? Cruella? Is it like Cruella, right? It's Cruella. Who else? Who else did they like? I don't know. I don't know. I mean, I don't know. Lex Luthor. I know that's not fair. The Hunter and Bambi. I know that's not there. Hunter was bad. They should have a life in the world. You got the Hunter. Yeah. Right? Sure. The Hunter and Bambi. That guy was no good. I don't want you want to go on that ride? No, I don't even want to ride. What do you get to shoot on that? Jeez, that's horrible. All right. So anyway, Disney, let's go back to it. So they made up for the, like I was saying, who is running this guy, this division? Well, it turns out it's the guy that they worship and we found out this weekend and how great it is. And they got cruisers and new rides. And so shut up, Jim. But they really meant to tell you to shut up. Thanks for sending the message. I appreciate it. Okay. Coming up, some news on the activism front. You got something? No. A little bit. I got a little on Starbucks. We're going to, we'll give you a bit on that. Of course, that stock was looking up. We'll tell you why. Has for the overall market also looking up ever so slightly, let's call it, in terms of the open that we're going to get about 16 minutes from now. We've got a lot more squawk on the street for you straight ahead. Walmart Plus members save on meeting up with friends. Save on having them over for dinner with free delivery with no hidden fees or markups. That's groceries plus napkins plus that vegetable chopper to make things a bit easier. Plus, members save on gas to go meet them in their neck of the woods. Plus, when you're ready for the ultimate sign of friendship, start a show together with your included Paramount Plus subscription. Walmart Plus members save on this plus so much more. Start a 30 day free trial at walmartplus.com. Paramount Plus is central plan only, separate registration required, so you want more plus terms and conditions. Want a website with unmatched power, speed and 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. Earning your degree online doesn't mean you have to go about it alone. At Capelli University, we're here to support you when you're ready. From enrollment counselors who get to know you and your goals, to academic coaches who can help you form a plan to stay on track, we care about your success and are dedicated to helping you pursue your goals. Going back to school is a big step, but having support at every step of your academic journey can make a big difference. Imagine your future differently at Capella.edu. Welcome back. I'm going to keep an eye on shares of Starbucks this morning. Of course, the stock gym and I have discussed a great deal. What I can share at this point, I mean, there was a story over the weekend or on Friday that starboard, obviously an activist we all know well is taking a stake there. It doesn't appear, basically, some what I've been able to understand at this point that there's necessarily a story around that at this point. Activists do occasionally just own stocks and they kind of wait and say, and maybe they will do something at some point, but they very well may not. And that certainly seems to be the case here in terms of what's been reported by the journal with starboard owning a stake there. The focus that we've had and that continues to be the case I think for the market rightly so is on Elliot and the significant ownership stake that that company or that fund has in Starbucks and what it is trying to accomplish namely from what I certainly understand and I think you do get getting somebody if not one or more directors on the board. What I've heard most often is Jesse Cohn who runs the activist practice at Elliot for some time being proposed as a director. Some back and forth around that, but perhaps Jim we do get a settlement near term that does involve Mr. Cohn joining the board. Again, can't say that with certainty, but certainly something that I've been hearing any number of times as a real possibility. Even I know him. I know by reputation, you know, Jesse. If he got on the board it would be meaningful because I look at the board and the board is made up of really busy people who and I mean busy not in a negative way. I mean like people who are focused on other aspects. I mean look, Satcha had to leave it because it's just, it doesn't have time. Yeah, such a Nadella stepped off the board. This would be essentially replacing this place on the board. So if this man went on the board it would actually be of some significance because I think the problem David is operational. I think that they are not, they have a three prong plan that Locksman has and I don't think people believe in addresses. Everyone seems to have an Andrew Russellerkin had a, had, everyone has an idea in mind. Andrew Russell would say, listen, we need a 99 cent coffee. We got to get him in there. And then I was listening to him say, everyone has their own view, which by the way I share his because it is very expensive. I had an eight dollar Starbucks experience after waiting in line for a long time. And one of the stupid airport ones, which everybody knows, they don't run and they have no control over and they just, the last guy said, you can't worry about it, Jim, it doesn't mean anything. And I'd come back and say, are you kidding me? It's your name plate, for instance, have some guts and tell the franchise that we're breaking the contract and you can sue us. But what I see with Starbucks is a company that is not, you know, we'll spin off China, we'll do this, that it's operationally questionable. And that's something that is never questioned. And Jesse come with questions. It's also, and it may well be the case that that is, in fact, what occurs. That said, it can take some time, can it, to fix these kinds of things if in fact there are fixes to be had? It would be faster if you said, listen, we went three on the board and they say no, and then there's a race, a proxy. And then it would be like, now, we know in Disney you can have a kind of up and down thing there. The proxy goes to 120. But this is not Elliot, this is different. Does, I mean, they do engage a proxy fight, but not often. No, I mean, it could be more like constellation where they put on one guy. And the problem is they got in there and said, well, geez, our guy is Bill Mullis, the CEO, and he's doing everything. And it still doesn't move. But we do, we advise him. He likes her advice. He takes it. But the stock doesn't go up. And that's a large part because people worry about GOP just one. And also worry about President Trump. That happens a lot in activist situations as well. You know, not everything that an activist touches turns to gold. We certainly know that. I like that. You do. Yeah, I really like that. Okay. Do you think an activist should get involved with Nvidia because it's only up 100% still the best performance of the year? Absolutely. Somebody should explain to Jensen Wong what's really going on. I don't think he really understands his market. No, but I'll tell you what my kids bought me for Bob. What Father's Day? Wait, that happened a while ago. Oh, that's not the point. Oh, sorry. It's unbelievable leather jacket that looks just like Jensen. Really? Yeah. And you know, I feel like Jensen when I put her on, meaning down 15%, not as good as I thought. I mean, that is what the... Can you imagine, David's number one woman in the S&P? I know. And people have like things like complaining? I saw someone this weekend is hitting me. So your dog was named Nvidia. Like... Like you didn't do anybody a favor by recommending it for the last eight years or whatever it's been. Nvidia, thanks for not. You can't take it so hard. I take it personally. I know you do. That's really not easy to pull. It's everything we have. All right. Well, what else we have is a mad dash coming up. And so Jim's going to get ready for that. We've got a few movers we want to get to this morning. Let's give you another look at futures. We are set up for a higher open here on this August Monday morning. Don't go anywhere. Walmart plus members save on meeting up with friends. Save on having them over for dinner with free delivery with no hidden fees or markups. That's groceries plus napkins plus that vegetable chopper to make things a bit easier. Plus members save on gas to go meet them in their neck of the woods. Plus, when you're ready for the ultimate sign of friendship, start a show together with your included Paramount Plus subscription. Walmart plus members save on this plus so much more. Start a 30 day free trial at walmartplus.com. Paramount plus a central plan only. Separate registration required. See Walmart plus terms and conditions. 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. Alright opening bells just a few minutes away. Let's take a look at the 10 year you know a week ago this time we hit 3.68 just to give you a sense as to the importance of yields as well in terms of the overall movements of this article by the way. I tried to sell some to your paper and it was not there. It wasn't real. That whole screen was just raw. It's like Solana. It doesn't really exist. Solana was in the ulympics and medals. We actually have Solana in the yard. Solana medals. And then they tried to take the remains, tried to take it away. By the way you can catch this incredible show anytime anywhere by listening to and following the squat on the street opening bell podcast. Alright let's get to a mad dash. I'm going to have before we get an opening bell the food group in focus. Colman has a really good piece out today because we're all trying to figure out where to put these given stocks. They trade us a unit. They shouldn't. They start with a buy for ConAgra which is probably one of the most hated stocks in the group. Has a good yield and this frozen food and snack they like their selection. And then David a little pair of action here. General Merl Nils you buy craft times you sell. Modellies you buy. Percy you sell. Percy has been so sticky. It doesn't go down but Modellies has been the winner in the group. General Nils had a good quarter even though I wanted even more from blue buff. And craft times I totally get it's done nothing for years and it will continue. You're trying to sell aren't they trying to sell what Oscar Meyer or something right? They've got some things for sale. That's the worst portfolio. I mean ConAgra and Portfolio a lot of people think it's not that great but it appeals to younger people because they have single servings. Craft times I don't know. I mean my mom always gave me the slices that were in cellophane whatever. Yeah enjoy yourself. They're delicious on a cheeseburger. That. That my friend is saying something. Thank you for bringing everything you have to sell on a cheeseburger. Nothing wrong with a cheeseburger ever so often. But it's gonna move the stock. It's gonna move back. Alright we'll uh we'll get back to the food group. Let's get the opening bell here. Uh take a look at the real-time exchange. Perhaps you're green on that board. You're doing it live. We have this specific ram calculation for a baby that's 100% free to listing an abortion. So we're gonna talk over the NASDAQ International Youth Foundation that connects young people to educational and employment opportunities around the globe. You know you mentioned food group. Yes. Why not just start on the one name that over the weekend everybody was pinging me and laundering and are we gonna get a deal. Kelanova. Kelanova. No deal this morning. My understanding though is Mars is still at it and the hope seems to be soon. I had said this time last week when others were reporting imminent. I had said not however that you know the leak may have been a bit early but nonetheless I think there is a hope and expectation they're gonna get to the finish line there. Uh I wish I had more detail. Obviously we know it will be a cash transaction given Mars is a private company that will not be issuing stock. They have the wherewithal to do it. They certainly can have the financing to do it. They have plenty of cash on hand as well. Uh but we are waiting for what would be one of the deal one of the larger deals of the year and we're still waiting. Right. Uh and again a lot of hope and fervor over the weekend. A lot of tech so you know it's happening it's coming. No no not here yet. But what's interesting about Mars and I've met with them. They are a great company. But they're run by another member of the Mars family right? The generations down there. They've got a good team at the top but I will tell you this. These guys are very savvy and I say that because I think there's a lot of people here who say why would anyone one Kelanova which is a snap company Pringles, Pringles, Pop Tarts. Yeah in a world where we uh GOP desk one does everything you make your sex life better you get to live to a hundred and you don't eat uh quit. I don't know maybe you don't eat rice crispies for all I know. But I mean the GOP desk one by the way Louie is pushed again. Now that there's an informative call right? I'm not even going to mention you know who made that call because I have no desire to make fun of well never mind. I'm going to hold off. But I you're not going to make fun of them all right? No because everyone knows. Well Lilly's your setting a great week last week after her name you can see it on our chart there if you can make it out it's a little circle at the end so you see that move up there look oh that's much better. Yeah. Well David Ricks can we just talk about David Ricks anytime you want to talk about David Ricks happy to do that. Ricks knew that what's key is building the plants and how hard it is. So no one understands that because everyone just says oh well Viking's got something good oh well you know Roche has something good well Regeneron's got something good oh maybe Pfizer's going to buy somebody. Amgen did not have something good and yet they claimed that something good. Amgen's quarter was the big disappointment of the pharma so far. Right. So I come back and say maybe Louie has a great plan and their drug is better than Novo and Nordisk which is what really matters. There has is more effective than Novo and Nordisk and you know what's going down already. Oh stop. Jim have we really seen a food company where we feel like they have said we are seeing an absolute effect or a restaurant company. Not one from none right. Not one. Not one. Not one. Okay and look it is true that there's it's not like just like 20 million people want it. But not one because who would ever admit to that. I know and yet. Hey our business is being killed by something that is really great for you. Like you go get this because it's like better than our food. I mean no no one wants to admit it but they all seem to have data and I mean this like Pepsko had data I like before and after and they did a lot of focus groups and it and that's free to like and that's Ramon LaGuarde who's money in the bank and he definitely showed me Jim you're wrong and I believe it because his data is so impeccable his data is data indicating that there has not been an impact from the use of GLP wants at this no impact and as they become more broadly used through the population and at some point in the world formulation comes and you have more people on them and it's covered by insurance broadly speaking and even Medicare does that change. I think that has to because there's just too much evidence that it only will but you have an outfit like Conagra which is recommended by Goldman I mentioned that they have a portfolio that includes slim chips that includes protein and what's really necessary is you know is that you have to have more protein and they they claimed on bad money look we've got the best snack and protein portfolio and Goldman bought that one and right as we've discussed you lose a lot of weight but you do also you lose muscle mass but you also didn't know what goes down for older people but didn't you like said people don't go out and yeah they don't go to restaurants well then they're going to why would you go to restaurants? They're going to need psychiatric because you only need to have your portion or if you're both on it with your spouse whoever that might have to make you only order one order and you split it. Oh okay I thought that meant because if people stay home to the number of times now where I have seen people leave half their plate. Tony Schu. Tony Schu from Dordash. Yeah if he came out and said look I've looked at all the receipts and people seem to have shifted away from restaurants that are really that for you or bad for you or that the number remember Dordash had great numbers now is that because people are staying at home because it's you okay? I don't know but that could be skewy things. I don't even know if it's bad for you good for you I think it's just portion size. Well portion size would still mean that you would order from Dordash. They they had one of the best quarters. Yes. They had a real easy. By the way can we just say David that something happened the companies had great quarters got all messed up by the end carry trade. So we ended up in the end not even realized who had good quarters because we didn't like one of my absolute favorite stocks as well as Fargo Charlie Schu. His stock went from 60 to 52 and nothing had happened. There's something noteworthy that's not B. Rowling. B. Rowling no you mentioned at the top of the program it's worth revisiting now I mean the banks last week. Oh listen I mean JP Morgan shares are still up to 21% right here but to your point Wells Fargo now only has about an 8% gain for the year. It was up huge. So it is lagging the S&P and potentially the rest of the group with Bank America have a key taking the matter in its own hands. So what let's come to Wells for a second though. Why did it go down? What's the concern here? Was it really credit quality for a very brief time? I pointed out private credit as well where we saw Polish shares down 21% in three sessions. Well I know that Wells said they weren't going to buy back as much stock today as they had previous but no I don't I did a piece this weekend for club members and I talked about the idea that you're supposed to a stock will be down. You know people ferment what happened yeah but nothing happened. So I could come back and say you know what's the commercial real estate no well they actually need to take care. Is the Bomp portfolio no the Bomp portfolio is really good. It's the expense control. No expense is good. It was the sweep that the SEC of it. No but that turned out to be okay. I don't have a reason and I gave it my check. What do you got you something? No I'm I can't hear so I got to push my thing in so I hear about it. Like something really big like hell and over. No I wish I just do this now so I hear about it. We should do this like say it's hard going deaf in the zero. I got to hear them. I got to be a deaf person if he did. Thank you. But I do think that key indicates that if you want to take matters you know if you have a Bomp portfolio it's not that good. Yeah. There's Scotia bank anxious to come in there. Yes and you can see that stock is up. Let's go through the deal itself actually because it's interesting and they're they're issuing new shares at 17 dollars and 17 cents and I'm actually going to do the 11 today with Sarah so I will be a part of that interview. I tried to get that interview so many times actually maybe it won't be but I'll be there. Let's go for hi. Let's go through the the actual deal. 17-17 a share that's an 11 percent premium to the volume weighted average for the last 20 trading days. 2.8 billion dollars is essentially the investment from Scotia bank where they will own 14.9 percent so right below that 15 percent threshold. Two stages initial investment of 4.9 percent additional investment of 10 percent and again total pro former ownership will be 14.9 and they're calling it a strategic investment and they're going to take the money to identify priority markets and basically help them grow I guess is the plan here. The wrap against key was the total no growth. I mean just a really good Cleveland bank with a very big yield but then we suddenly realized look they do have a Bonport player that they want to address. Nothing wrong with it but they get to address it but David the of all the regulatory concerns that that had kind of been in the ether about this company are now gone. I like the tensile book value going up 10 percent and obviously they're they're not a takeover candidate now but now this is a reason you can ask Gorman about it. Like I we've I've been dealing with hundred and bank shares and that's another bank that's doing incredibly well but it just doesn't get it's new. Maybe this can become PNC which is PNC synonymous for whatever they do no matter how good it stands. Let's go back to what we were discussing earlier whether warranted or not it's concerns about commercial real estate. It's just overall concerns now in terms of if we're headed into a slower period of economic growth or even a recession what credit quality is going to look like. But then you know the Midwest is boom down. You can the Midwest is boom down. Someone the other day was telling me I ought to go to Toledo. The Toledo's never been as good and I didn't realize the Toledo was ever good. Toledo. Toledo. I got rejected by the Toledo blade something or other. It's like one of the 53 papers that rejected me and you know I have them all on a wall. Most of them are gone and I feel pretty good about it. I know they all lived to regret it Jim. They did. Oh yeah. They lived to regret it. They wished. Anyone of them could have done it. Who knows you could still be the columnist for the Toledo blade. Oh I am. I suppose this full time you'd be a beloved you would be a beloved figure in the community. Yes I would and I go to the elks every night. Yeah. It would have been a good life. Too bad. Instead I chose to partner with you. How's so fine doing? I don't know. You want to hear what Moynihan had to say on CBS? You know what we want to do is it's another channel. My former colleague from many years ago, Margaret Brennan doing that interview with us behind the channel. Right. The cable channel. The CEO of Bank America because he has some relatively pointed thoughts about the Fed and rates. Take a listen. They've told people rates probably aren't going to go up. But if they don't start taking them down relatively soon you could just spirit the American consumer. Once the American consumer really starts going very negative then it's hard to get them back. So I guess they're not there yet. But you know what they where they are there Jim is on travel. I mean that was sort of another takeaway last week. We began the program talking about Disney and the parks of course but it was more than that. It was Airbnb. It was Expedia. That there were a number of too high. At least data points that seem to show that there is a slowdown in the US consumer in terms of what they're spending on travel. We now feel that everybody from Disney to United they haven't rolled back the prices enough. Only the cruise lines have really represented bargain. I had some relative prices for cruise lines versus just hotels. Marriott versus Cruz. You can stay at a cruise line. It costs a fifth for a week that Marriott costs. And I think that's significant. The Bank of America was the best quarter of the majors. And then when we heard that Warren Buffett had been continually selling it which we actually knew it knocked it down. Remember that was another thing that threw a little acetylene on the negative fire. Was it Warren Buffett selling a lot of Apple like you know and you got a lot of money. A lot of Bank of America. We know nothing about what he's doing so we can speculate forever what he is doing. A disturbing story today in the Wall Street Journal I should add about Bank of America. We've seen these kinds of stories before about those very junior associates who come in and invest in Bank and work 100 hour weeks. And the journal detailing the fact that many of them are pressured not to actually sign time sheets so that the senior executives or at least those who monitor the things these things know just how many hours they're working. You know at this point go to law school man. I'm telling you I mean you're going to work really hard but you're going to make more money. If it's about the money. Now I got bad news for you. What? The law firms are going to hire far fewer people because you can become all the lawyers now I know make more money than the bankers except the most senior bankers. But I do worry. We're going to work 100 hours a week. I mean you want to get to private equity or as we like to call them now the LBO guys although they're not anymore. They're alternative asset managers. Suggesting someone goes to law school is a genuine mistake. Why? Because they have found the law firms haven't have adopted AI far fewer. I'm not seeing any diminution at this point in terms of the entry class. What law firms? Let's see how many they have in the fall. Really? Yeah. Not this fall. It may be a few. Well I think they're all trying to figure out how much proofreading there is and that the you know AI is a better proof here than an individual. It's really good at that. It is. But you still need somebody to actually deal with the client in some way. If people are twice productive why do you need or do that? Don't worry about that clause. Worry about that one. Let me write this one for you. If they fired one person in the 80s bank. Make sure this contract is iron clad so they can't be challenged by somebody like Elon Musk who wants to get out of the deal. Oh tonight. Oh tonight. Oh my the olympics of the right. Yes. Elon Musk is going to have one letter president Trump and obviously Republican nominee for president Trump as his guest. Well that could be an exciting thing. I'm going to listen to that. I don't know. While I'm doing work I had a speech I got to give Wednesday for the investing club. I'll put that on the background. Is that possible to have that on the background? Look at that. Could be fascinating. Could be. Or not. Well David you interviewed Musk a long time ago. That was a fascinating interview. It was. But Donald is not interviewing Elon. I don't believe. Well no. That will be interesting. I don't know. I mean because it's one of the things about president Trump is if you think you have an idea what he's going to say then you've got the edge on his advisors. You never know where things are going to go. Vice President Harris did come out over the weekend and say that she would want the Fed to remain dependent. Yeah well she did not say I made a lot of money and therefore I can tell if that were to do. No. Which there are a lot of people who made a lot of money. I mean like hey in that sense like maybe John King Grace should run for president. Uh John Gray made a lot of money. Are you an interview? No. He's the president labstone. I thought that you had the interview. Well oh oh. Did I do that? I shouldn't have said his name with the teeth thing. I'm sorry. I shouldn't. Zip it. How about that sweet greetings. Okay. Okay. How about. Sorry. No I'm just. All right. Look. I'll give you a run of the board now before we go take a break. Any category you want? Anything? Yes. Anything. The move will drop in four percent. This is a little. This is a Sarah Sehr. I expect you're going to Russian history. Ukraine. For 500. So people don't understand the significance of Kursk which was the last great tank battle World War II and the Germans lost it. Now they had already lost the war. It was really had become a war against the Jews and 43. Which is people don't realize but Timothy Snyder who I think is the uh the best historian about World War II would tell you that. Uh but it was also has a great blog. But I do think that the battle of Kursk has tremendous significance for all the great patriotic war. I can't remember the last time we talked about the war in Ukraine. Well because it's not a new trade. It's a new trade. Well right. You're talking about the recent encouragement by Ukrainian forces into Russian territory. The Nazis thought they had that one one but the Russians who are our great allies at the time beat the Nazis. Okay. I didn't think you'd go there. So now I've got control of the board. I'm just going to go back to your favorite video because the stock is up two and a half percent. Oh let's say they do these daily options. You ever seen that? Yes. The kids do daily options. Yes. And then they do their lineup and draft kings and they do their daily options. Is there anything different? Yes there is. draft kings is more rigorous. Well that is a it's an important point in the gamification of the stock market. No younger people when I speak on this happen to be at a fabulous wedding uh this weekend. My friend Robby Pray Rob Bradle's son and I always ask people what's going on. And the younger people David they are doing zero options and they're doing it on video. And they're doing it on whatever is just the hot stock of the day. Right. And instead of I asked anyone does anyone invest in? No one investing. But it doesn't matter. Monica and Michael, fabulous wedding. But there was absolutely no substance to anybody's trading. It might as well have been daily fantasy. We've been going that way for a long time. I mean it's just garbage. The average whole time even for a mutual fund investor continues to contract. I believe. But we should mention Qualcomm down six. That's because of stories that Apple's integrating more. Right. And Doug Maymott equal. Apple's been trying to integrate for ages. That doesn't really work. Broadcom should not be down unless you think that there is uh the this is getting data center. If you think data center is bad. Okay. All right. That does it. No. Yeah. There. That's it. It's time for a bond report. Oh because I believe I believe in Cliff's talking about data center. But that'd be tonight's guest. Evelyn Cliffs. Yeah. I'd have to have to say that one. Lorenzo? Hello. Yeah. Well he's. Lorenzo. Come on, man. We'll uh we'll uh we'll uh um we'll talk USW and uh US Steel at some point. Oh my yes. I went issue if he's gonna come back. He's gonna come back. He's gonna come back. Lower, lower, lower, lower uh inner, a global price versus Nippon Steel. And Nippon, so he actually makes fun of Nippon Steel from Irene Pinsley up going on to the next. Big, important thing for US Steel is actually the arbitration between the between US Steel uh and Nippon. That's on the 15th. The arbitrator's gonna hear that August 15th. So we're only a few days away from that. It's true. You gotta give me everything you have in this week. We'll uh we'll revisit that. Or maybe we'll bring Dave McCall on from uh from the United Steel Workers. All right. Let's head to break and he's a friend of uh Laurent. Let's take a look at the bottom report. Yes, I'm aware. Check how treasures are fairing this morning. We're hanging right in there uh a bit below uh 4% at 3.94 and again that two year. Not really too much movement. We'll be back up to this. Of course there's Lorenzo you know I'm like doing a little joking with you. This Qualcomm uh we mentioned it uh what are you talking about Warner Brothers sir. There's always time. Although they may be they're running out of time. I don't know. David take that back. I take it back. I take it back. But that stock is below seven Warner Brothers Discovery Charter also down as well. But Qualcomm of course is kind of new to that yet. Don't see that as often their those concerns about Apple perhaps not using as many of their chests. Yeah look at it. Remember they were at war. Remember how long they were? Oh my but it's you know I gotta tell you Cristiano was never uh never wave. No but uh they they solved all of that number years back. We're back after this we stopped trading with Jim. Look at that face. What's the problem? Because Evercore comes out and starts uh says tactical sells on lows and target and these are two companies I really like but I respect the fact that they must have done a lot of works to put a tactical sell out. You're really just you're sick of your neck. He's very good companies. Um well Home Depot and Walmart you have to come this week. I know and not I'm important in terms of the okay. I think Walmart would be fabulous. You do. Walmart's gonna benefit from the consumer. Yeah because they roll back prices big and that's what happened. People went to Walmart. They went to Costco. Uh and and they of course went to Amazon. Uh what do you got on the big show tonight? I've got Lorenzo Golcovs who's just unbelievable. Doesn't like if you call him Lorenzo. Remember that. Now here's what he's going to call this. Yes. You're gonna have to talk to him about US Steel. You know that. That's exactly right. Yeah. And I want to go there and he says he's got a lot of friends. Remember got 600 people in a weird factory all set to go. Uh and they're doing transformers. Fascinating. In terms of the union opposition. I will tell you that one thing Lorenzo doesn't said they'll do but haven't really been met. He attacks. He attacked it. A new pond steel for hiring. Uh Mike Pompeo. And he said that's ridiculous. Pompeo's not a good guy. So I'm gonna I'm gonna ask Lorenzo point black. Will he go if if new pond steel is rejected by our government? Will he go back with a say a food you know it did? Okay. And we're gonna go over the steel coal acquisition which I think is pretty. Okay. Awesome. I'll see you later on on TV. Excellent. And tomorrow morning right here. You've been listening to the opening bell on CNBC's squawk on the street. All opinions expressed by the squawk on the street participants are solely their opinions and do not reflect the opinions of CNBC, NBC, Universal or their parent company or affiliates. And may have been previously disseminated by them on television, radio, internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of an opinion. Such opinions are based upon information squawk on the street participants consider reliable but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. To view the full squawk on the street disclaimer please visit cnbc.com forward slash squawk on the street disclaimer. Walmart Plus members save on meeting up with friends. Save on having them over for dinner with free delivery with no hidden fees or markups. That's groceries plus napkins plus that vegetable chopper to make things a bit easier. Plus members save on gas to go meet them in their neck of the woods. Plus when you're ready for the ultimate sign of friendship, start a show together with your included Paramount Plus subscription. Walmart Plus members save on this plus so much more. Start a 30-day free trial at walmartplus.com. Paramount Plus is central plan only. Separate registration required, see you on our plus terms and conditions. [BLANK_AUDIO]
