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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. Market insight and analysis. You're listening to the opening bell of CNBC, Squawk on the Street. Good Thursday morning and welcome to Squawk on the Street. I'm David Faber with Jim Kramer, live from post-9 at the New York Stock Exchange. Carl Kitenia is at the Olympics in Paris. Let's give you a look at futures. We're setting up for a higher open. Not sure that means much, of course. If you followed yesterday, we looked like we were set up for a higher... Well, we were higher open, but not a higher close. And let's start with our roadmap this morning. Not on the markets, but on what's affecting them. Namely, the odds of a U.S. recession. JP Morgan's setting easing labor market pressures as it raises those odds. Plus Eli Lilly, the biggest gainer on the S&P pre-market. It blew past earnings estimates. Hiked its guidance on strong sales of what everybody. Come on. Yeah, of course, it's weight loss drugs. And shares a Warner Brothers discovery tumbling on its latest results. Included, a $9 billion right down. It's a goodwill impairment charge on cash. Not cash, not cash, not cash, not cash. TV networks, it's not a great business to be in. But here we are, a TV network. And we like to talk about the markets here. Hopefully, you still watch us and pay for your cable bill for doing that. We've got a lot of volatility. Major indices coming off their fourth negative session in five. And Jim, I did reference of course yesterday. We can watch it tick by tick there. Looked like we had a nice start. You and I left the air or when you left at 10 o'clock, things looked fine. It was a great day. It was a beautiful day. Trying to get an answer to what had happened. You know, as usual, nobody knows anything. What do I got here? It's a reduced risk market instead of a by the dip market. The VIX is still higher. It's August. There was a 10-year retracement. Repricing risk. We're waiting for the Nvidia print. We're in a holding pattern. I don't know. What do you got? Well, what a pile. OK, so let's just look to a pile of what? Deal with reality, OK. Yesterday was a day I think to find actually by the stock of Walt Disney. OK. Because things look good. Very good. And then you peel the onion and you find that things are not that good. And you keep coming back to this. Although we knew that first thing this yesterday morning, I will say. No, we're well ahead of the game. We're at Warp Speed. We're at Warp Speed to use a program that I know you like. What I'm saying is that when you go back over anybody that took a big price increase or any price increases, people are done. They're not going. The consumer's choosy. The consumer's been empowered. And the consumer goes where they want to go. The consumer likes convenience and store dash and Uber. The consumer doesn't like anybody who raised price and raised price and raised price. The consumer likes Costco and Walmart doesn't like general retail. The consumer's being revealed, David. As someone who's canny and done with the companies that took advantage of COVID, raised price, complained supply chain, plain whatever, David, we need price rollback if you want to get the consumer in. So, all right, I'm going to set that. That's an interesting take. But what does that have to do with yesterday's moves? And what it means for today? That's the take. That's the take? Yeah, that's the take. So, I'll extrapolate. It's an interesting take. Interesting. Interesting is such a take in a term. And therefore, odds of recession are strengthening. And so... You asked me on the 30... Why did the yields go up then? Well, the yields are just... These auctions aren't that good or they mean your job is claims. Forget the yields. It's all within a little bit. It's just niggly. What does matter is you have companies that are totally out of sync. And they're not in trouble, but they're doing really poorly. And you referenced Warner Brothers Discovery. It's not doing well, okay? We have companies like HubSpot that Alphabet was going to buy. Not doing well. We have today, David. I have something that I think you would love, which is a downgrade of Intel. Really? It's just piling on. No, that was helped yourself, can you? No, that was meant to be a joke. Oh, it was. It was meant to be that there's an intellectual vacation. Usually, I get your jokes. Except when they're not... Except when they're not funny. But, no, they're not funny. Well, no, can I just start over? Because you're interrupting my thoughts. Well, wait a second. It's role reversal. Yes. Okay, this is what defines this market. Tell me. JP Morgan, gradualism under pressure, central bank gradualism, activity data. And it's the percentage of people and them thinking that there's going to be recession. They're saying 35%. Leslie Pickers interview, our own Leslie Pickers, is what they tell you to sell. I mean, who's is it? Somebody gets one loan. She's even borrowed by the Japanese bond. You know, she's ours. Did an interview yesterday with Jamie Donman, which I thought was one of the most calming, terrific interviews. But then we come up with us. JP Morgan pieces is 35%. And this is the game, David. The game is to guess and place odds on a recession. That's what we're really doing. And that's what's worrisome. Because they keep going up in these pieces. I know, but they always get it wrong. They got it wrong in 2022. Bopasani will tell you over and over again. So we'll see you basement. All the economists got it wrong. Look at me. I'm opportunistic. Everybody was waiting for a set, calling recession in 23. Okay. It never happened. You're right. Okay. Should we end the show? Because I'd like to end right there. Oh, I've got to speak to that. You're right. I have to speak to someone about some of these lawsuits that are going on in tech. Okay. Look, all I'm saying is what's defining the market right now. It's this game. And is it the consumer? Is it the consumer weaker? We're playing that game. We are. And they're all sides of it. And you can always find it where you want. Right. Top golf, you can find it. I mean, you can find it in the strangest places. But a lot of the consumer weakness is travel. And travel. Can I find it in dust, bros? Okay. So I have Dutch bros on track. Look at that hand on. I read the conference call a couple times. I owned a restaurant. I own two restaurants. I've been in the car. My daughter was a barista. I followed the career very much. I know this game. I know Dutch bros from Oregon. I did not understand a single word they said about call. Not a single word. I took a year of accounting. Maybe I take two years. That call. And I hope they don't. I don't want them to cancel because they need to explain. But that call was one of those calls. It was down in 28 at one point. That I just didn't understand. They're there. Do it being more promotional. They're not taking price. And they refuse to. They refuse to acknowledge the same before sales are going to go up or be flat. They wouldn't give you any forecast beyond next week. And it was a disconcerting call for a company that I have championed for ages. Okay. We will get to more of it later. But I want to come to a company that you've also championed. It wasn't a very good analysis. I enjoyed it. But we don't have to always go on. No, but I mean you picked a stock and I had the answer. I mean, why don't you give me some credit? Name me a stock and I'll give you an answer. Okay, let's talk about Eli Lo. You betcha because David Ricks came on. The first inning, he used the inning. So on the other day, did you see the other day someone came in and says, listen, I'm not going to use a baseball analogy? It's like, are you kidding me? That's the only thing we have right now. First inning in these, this was in a remarkable quarter and hidden in his, if you go deep underneath in the interview, he does have a pill. It could be soon. He's willing to cannibalize if the pill's better than the injectable. He does have something that can be injected less than it's currently injected, but what he really has David is a moat. You can't make as many drugs as other guys because he's spending a fortune. Now, let me give you a little secret. Come over here. Please, please, yes, Jim. It works better than Lagovy. Thank you. Thank you. Jim said it works better than Lagovy for all of you to make up. Lagovy drops the weight 15 to 20 percent. And these guys go as much as 20 percent. 20 percent. Well, it's just, it's just very solid. But Ricks is so non-promotional, it drives me. Like, if Kenny be like everybody else. Ricks was on Squawk Box. Why does he have to be like, why does he have to temper? And the CEO of Eli Lilly discussed the demand, of course, for the drug that has taken the country by storm. Take a listen. We just see unbelievable demand. And we're not even trying that hard to promote this drug. We're not advertising our, we told our sales reps to basically just service customers, don't promote. And what you're seeing is just consumer organic demand here as we've shipped more product, as we bring more supply online in the United States. And having gone to dinner with a few people on the drug, they don't eat. No, but they sit there and leave half their meal. I know you're focused on, very annoying. You're focused on weight. Especially when I'm paying the check. You paid the check, where'd you go? You got that Mexican place, Eli, so what's your building? I've been taking you out in a long time. I always pick it up for you. No, you do not. Lexley, you, wow. Yeah, so listen to me, because I'm going to talk subsequently for a second. They are buried in all of this, are new studies that they're working on, study for NASH, which is that non-alcoholic, but it really can be used for alcoholic. There are going to be many, many new studies. He indicated that the hypertension study hasn't come out yet, the congestive heart failure study, it looks like a real success, a 38% improvement. And all of this is leading up to the fact that Medicare is going to have to pay. And all the yet-nose, I had CVS one last night, but they're all going to have to pay. Ultimately, the help risk associated with being fat are very high, though, and that would seem to be a benefit longer term for even the insurers, because people will be healthier. They'll be able to prove to you that you should pay because you'll be out of pocket longer term, far less. Right. And David can do that. Wonder drug, I mean, of all the drugs we've seen during the last 40 years, how does this one work? Penicillin in this one, man. Penicillin still works. Holds up. Penicillin holds up, right? Like Mickey and D'Amini, they hold up in penicillin. Yeah. All right, let's get over to Carl. I'll tell you what holds up, the Olympics. I mean, as Carl Well knows, I've just glued to the TV set. I love it. He's in Paris, got the latest for us, Carl. It was a great night of coverage last night, David, and it'll be another exciting day today. If you're looking for a viral image today, you might well go with Quincy Hall after winning the 400 meter last night. Interestingly, he went into the last 100 meters out of all the metal positions, but then he turns on the gas to win the first US man to do it since LeShawn married in 2008. He actually made his early career. I love this part in the hurdles, but he switched to the 400 last year. The decision he said last night that changed his life. This grind determination, like I said, a lot of it, we do a lot of hard practices, and then we focus on coming home at the end of each practice. So that was nothing more than just me trying to go harder, just harder and harder to deal, but I'm used to doing it. There was some heartache last night, guys. For the first time since beach volleyball became an Olympic sport in 1996, the US will not metal. Andy Benish and Miles Partaine did lose to Qatar two to zero. They were the last remaining US pairs. So that's a bit of a down note. But on an up note today, a little bit of history, guys. 32 years ago today, the dream team. Remember them, one gold in Barcelona. That was the first Olympic game where the pros could play. They won by an average of 43 points a game. They never took a single time out. And David, I was looking at the roster. If you don't remember, Jordan, Pippen, Ewing, Bird, Stockton, Malone, Barkley, Magic, Leitner, just an unbelievable day 32 years ago today. Incredible. I do remember, I remember it well. Christian Leitner, of course, being a part of the team. Was he in college still or just out? But yeah, amazing. And of course, there's that steeple chase, Carl. You can never forget that steeple chase watching that American come out of nowhere. Nobody knew who he was when he finished in the silver. He kept looking for somebody to say, hey, great job. Nobody would even talk to him. I think, David, you've got to do one of these games one year because you were really good at focusing in on events that don't always get the love, if you know what I mean. I do, I do, and I agree. Yeah, it's amazing to watch in particular some of these unexpected victories in some of the races. It's been amazing, just and really emotional. I think Tahiti was my favorite skill. I love Taurus. Yeah, well, just because the camera people, every single time, Carl, they almost got killed because the surfboard, they didn't care about the camera people. That's why it was such great coverage. Yeah, we've been talking a lot about that particular, the crews who cover the Tahiti coverage must be living an incredible life because as you said, it's not easy to shoot. But then again, you're into heating. Well, well, you're in Paris. So that's not bad either. Yeah, no. Yeah, just unbelievable coverage, Carl. Amazing. We'll be checking back in with Carl later, of course. He's tweeting unbelievably good stuff about recession, no recession. That was a fabulous week, Carl. Oh, did you ever core note? Yeah, I thought that was one of the most important things this morning. Kind of got the zeitgeist correctly. Yeah, well, it's nice when you wake up at 2 AM US time, right? You can read all the notes. Well, yeah, that's what time I wake up. You want me to wake up later? And Carl, as they like to say, is a great follow because he always has... He's the best follow. He actually is. Anybody's birthday today, Carl. Well, he's always got a really helpful commentary and things of that nature. All right, Carl, we'll see you later. And every time Carl does anything that is pop, I immediately call my wife. And she thinks I am so with it, it is fabulous. Thank you, Carl. All right, it's Carl Appreciation Day here. We can't wait for him to actually get back either, but he's got another full bag of coverage. The coverage is so great. It's just so great. I find this, I know, versus say, the political discourse of our country right now, which you prefer, the discourse or the Olympics? It is a nice thing to get away from that and watch this. Isn't it? Yeah. All right, keep an eye on it. It shares a Warner Brothers discovery. By the way, they are the Olympics in Europe. That was good for them. Not helping the stock right now. They didn't make that a percent. We'll tell you why. Check out futures. We are headed for what appears to be eye or open. You don't want to say much more than that, though, given yesterday's act. And we're back after this. 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. My dad works in B2B marketing. He came by my school for career day and said he was a big row as man. Then he told everyone how much he loved calculating his return on ad spend. My friends still laughing at me to this day. Not everyone gets B2B. But with LinkedIn, you'll be able to reach people who do. Get a $100 credit on your next ad campaign. Go to linkedin.com/results to claim your credit. That's linkedin.com/results. Terms and conditions apply. Linked in. The place to be. To be. 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. Two plus years after launching our company, we are still in the midst of a long-term transition. Marked by many notable progress points as well as some tough challenges. Our direct-to-consumer business is doing very, very well. And we see a tremendous amount of upside. At the same time, there are tough conditions in the legacy business. That was Warner Bros. Discovery CEO David Zazloff on the earnings call last night. Chairs are down as you see about 10% in the pre-marketing. It was a $9 billion right down on its TV networks. It certainly got people's attention. That's a non-cash. It's a good will impairment, essentially. Although estimates also on sales, I think, were missed. You know, it's a rare day. You can say that AT&T may have done a good deal. Take a look at the three-year. Can we go back to that, please? Oh, my. That's what I was looking for, yeah. I mean, but it looks like maybe AT&T did do a good deal. It was 35 bucks. That is Warner Bros. Discovery stock when this deal was announced. Of course, to remember, merge the Warner Bros. assets with Discovery. It was a $25 stock when the deal closed. It's now below $7. Now, of course, it's not surprising that you would write down the value of the assets, the linear TV assets. Given that decline in your stock price as well, people would be wondering, "What are you doing? Where do you have those things marked?" On the call, the CFO discussed the fact that the NBA rights may have been a triggering event. You know, you have a certain cushion, and then when you make assumptions based on the fact that, "All right, AT&T may not have the NBA. What are our sub fees going to be? What is it worth?" They would have had an impairment charge regardless, but he did indicate on the call perhaps that was kind of the triggering event. He said this clearly were a sports-right discussion, like the one with the NBA comes into play as a triggering event, then compels us to reevaluate our business case and strategic planning process with the latest assumptions and the best of where the industry's going. Where the industry's going is linear networks, Jim, continue to decline at a rapid rate far faster than many had anticipated, even a couple of years ago. And, of course, it's all about the direct-to-consumer business, which, by the way, to defend Warner Brothers' discovery. If they can get this done, there are over 100 million subs are doing run rate of a billion in EBITDA. For Max next year, they're accelerating sub-growth. That's where they're going to focus people. I think that's right. I think if you remember Jeff Bucus used to talk about how they're not really much in international, and I think that Dave Zazzos correctly is going for scale, which includes a lot of positive things about Europe that was great around the world. Now, David, I want to take their side for a second. I just went, "Look, it is absolutely true." He said, "Distribution revenues decreased 8 percent. Network ad revenues down 9 percent cash flow down to 750 million. They turned down 750 million down to 1 billion." But when I looked at their corporate bonds, David, not getting hit. No, I mean, you know, again, right, total adjusted EBITDA, 1.8 billion. They did have cash from decreasing to 1.2 billion. Yeah, they took it down to 3.8 billion. 3 cash flow of a billion. That was good. They have a maturity schedule that's quite favorable and ask them when the maturities come off. They did that well. But that said, what's going to get this stock moving in the right direction? Well, it has to be Max in a breakout. He did talk about Max in a very positive way. He spent most of the call talking about Max and, you know, even just like European Olympics. And, you know, the studio is also suffering. There's a lot of cross-currents there. A lot of, you know, sort of structural changes are taking place. They've been spending a lot, and the movies have not been doing that much. No, it's funny because where they're really doing well is, and, like, they do a presumed innocent for Apple+, which Tim Cook loved very much. And what bothers me here is that the common stock is indicating things that are far worse than the corporate bonds. But usually the bondholders are smarter than the common stocks. You know what? I'm going to talk more about it after the bell when we can get back to it, just in terms of could there really be any activism? What about the possible split of the company? Because there's a few things that should be mentioned as well. But we've got a mad dash with Jim, he's going to get ready for that. And, of course, we've also got an opening bell coming up. Take a look at futures. They're set up for a higher open when squatting the street comes right back. Walmart+ 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+ subscription. Walmart+ members save on this plus so much more. Start a 30-day free trial at walmartplus.com. Paramount+ essential plan only, separate registration required, see Walmart+ 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. Let's get to a mad dash opening bell a minute and a half from now. Robinhood? Yeah, now Lily is overshadowing everything else is good. But people have to take a hard look at Robinhood because this stock will be up more than it currently is and I say that because amazingly Vlad Tenev is doing everything that every other brokerage house wants to do. They're doing all sorts of crazy things that are helping IRAs. They're just starting to use offering margin which they're going to do very low. David, they have AI that's going to offer an investment advice. I don't like that but people will buy into it. And best of all, David, these guys, they'll do any sort of crypto you want. Okay, so people take options of crypto, they do everything. You know, they're like, if you look at our tag, you'll see this little thing called Solano. Solano, yeah. I mean, we'll run that all day. It's supposed to say Lily. And I'm like, will you please? I mean, what do we know? Like, you know, why don't we just run like dogfish? But they trade everything and people love it. And they do say that people in the day have to use your option business and to use crypto business. And a lot of these brokers that are trying to get younger people, they should just copy these guys but do it in a more dignified fashion. This is the blueprint about how to get younger people. And the other guys just don't know how to do it. It's right here, just appropriated for God's sake. There, there. Ready to open it up? Can take a look at our real time. They're saying back at head 40. Here's the big board goal. Back to head 40. All cap full equity ETF. Over at the NASDAQ, abacus lights, celebrating its acquisition. F-C-F advisors. All right, Jen, it's a wide open market. We hit Lily. We hit a couple of the other earnings movers. Yeah. I'm going to give you your choice here of what you're at, where you would like to start. All right, I'm sticking with this younger people analysis. And it looks like they don't know what the heck they're doing. First, we can go to Bumble, and Bumble is bumbling. Bumble is bumbling. Bumble is bumbling. Some of the billion dollar market cap company, really. All right, all right. Okay, so Celsius, which is energy drink and Monster, which by the way is the best performer from 1990 to the present, not tech. David, the bloom is off the rose or whatever you want to say on the energy drink. Yeah, the cohort. And they can't reignite it. Now, Celsius has the biggest percentage gain of anybody. But you know what? David, there's something that is awry here with the energy drinks. And no one seems to know exactly what it is. Yeah, what's going on? Nobody knows. I think that's usual. Nobody knows. I know. I think one person knows. Jim Fitterling. Jim Fitterling from Dow Chemical knows? Yes, because these things are filled with chemicals. Even though people claim they're natural. I'm going to go to Fitterling. I like Fitterling. He knows the answer. What's going on with Monster? Because you mentioned that M&T is down sharply on-- David, again, on numbers that were not-- No, the numbers were like-- And this is a $50 billion market value company. I know. What people are saying is that this category, which has been great for so long, has lost its luster. And everyone's trying to figure out exactly why, given the fact that, you know, people are supposed to want the energy and PEP and like the taste of it. And this is in that case, I'm thinking Celsius. But these have been tremendous marketing successes. And the dog-- it's like dog food. The dogs won't eat it. The dogs won't eat it. Did you ask? I mean, you could have known and proved on the can. The dogs aren't going to answer last night from the CEO of Celsius. Total denial. On bad total denial. Total denial. Everything's great. The old-- Yeah. Yeah. It's not only as great. It's better than you think. It's like, you know, he popped open his cell-- Do we have a clip of him popping open his Celsius? I don't know. Let's take a look. Let's take a look at the clip of him popping over some of the-- That wasn't fair. I just held him ahead of time. This is not that kind of show. Let's take a listen. The alleged spontaneity. You've got the best house in what increasingly people are thinking is a bad neighborhood. Does the neighborhood have to get better for your stock to fly? Well, Jim, you just broke-- we just broke record revenues. 400 million in revenue, 100 million in EBITDA, best quarter in company history. You know, we were a little bit somber talking about the consumer. You saw the category decrease for the first time since 2020 on a weekly read. It was growing strong in the beginning of the year. But the reality of it is, Jim, the sugar-free category continues to be the growth driver and energy category. And Celsius is the category driver of growth. All right, so he wasn't breaking off his talking points. No, and that, in the end, is not only Dutch bros, you want the people to be much more like Karen Lynch or CVS. It says, "I know we have problems. I've made it so that I'm in charge of a particular area that's a problem. It's on me if it doesn't do well." And I thought she, even though I know that this is a very challenged company, she owns the issues and says she's going to take care of it. These guys don't want to own the issues. They think that everybody's going to be fine. And we're just going to go right back to the way we work. Now, David, since we don't know why it went down, maybe it's possible that energy should just come right back. Maybe they do. Maybe they do. I'm not a user. I don't know people who are, so I have no insight whatsoever. Well, we have this. It's not unusual. We always have a pallet of Celsius up in our office. Yeah. People drink it. They happen to like the watermelon right now. It's the one people like. OK. But I do find, look, Fieldby's upbeat. He did have those revenues. But the category is hated. By the way, the category is not muted by GLP-1s. And those actually are something that the research says people drink. There's a 10-year treasury, Jim, about 4%. Let's not forget where we started this week. No, no. This isn't amazing. Now it's, again, because of our lovely charts. This is an amazing week. It's an amazing week. We were at 365, something like that, at Mon Monday. An amazing week. And, you know, we are finding that what people, day to day, people don't know what to do. For instance, David, you know, Trex. You know, Trex and Asics. Yeah. OK, so Trex, they both make this kind of faux wood. All right, one I think is better on the other. So Asic reports an amazing quarter. And Stock goes up. Trex reports an awful quarter. Terrible. No, I mean, two companies in the same industry. It makes it really, really hard to figure out what to do. When you have two companies, isn't it much better when it's the media? And, you know, everything is awful. Yeah, I mean, to your point, although Warner Brothers is discovering not down as much as it was in the premium market. Tell me, look, I want you to come to Disney Day 2. Because I will, I'm going to say here, now you saw some positive things yesterday. I did, but I heard just more positive on the stock than I asked some times. Disney Plus. And I did make the point that parks are such a large, become such a large percentage of overall income at the company, that if operating income at the parks is reversing, is not trending higher, it's a tough road. And it's followed through on the downside from yesterday as well. I thought it wouldn't. And the reason I thought it wouldn't is because you can change the theme park. You lower price. It was Disney Plus that I was worried about. And Disney Plus had a great quarter. A great quarter. It was PM, which was really good advertising, up 17 percent. But the theme parks are fixable. Yeah. And I don't, you know, um, you know, Greg. Greg. Wait, sir, like him. Oh, yes, Greg. Remember, he spent that day at the game. At the parks, yes. I would put him in there before I would do whatever anybody's doing. Now I'm not talking about Tom. I mean, Tom would take it so that it would reverse entirely. But Greg could do a better job. Greg, because the grand flirty is 750, and the Polynesian 650, and the Cosmo is 550, and the tickets were that $100. You know, as far as I was your Greg. Oh, yeah, the Cosmo. Greg. Whatever. Greg would be better. And Tom would be a cook. It is not cheap to go to an amusement park. No, and that's why-- Whether it be Disney's or what others-- That's why I think they have to rethink. Don't want to cut prices. This whole era. Cutting prices. Hey, I got it. I got it. Oh, my god. It's just hit me. It's just got hit me. Oh, OK, here we go. All right, so no one wants to cut prices. Right. Except for two companies. Tell me, who? Walmart and Costco. Hit those companies up, and you will see stocks. They are kings, David. They're-- They beat kings. And the reason why? Because they can. They can. They can't. They can't. That's why they can afford to do it. People want. By the way, if you want to go buy gold and Costco, I mean, you'll have good luck, I mean. By the way, it's a good call there. Look at that. Both those stocks. Costco. Yeah, because Costco-- You're right. Richard Glanti, the CFO, he's retiring. They were committed to roll them. He's still talking about them. Well, because he committed to roll it in that crisis. And then, Doug McMillan, 5,000 items roll back prices. I cannot believe how I put a Dicky Jack for 27 bucks, David. I saw it for 60. Now, Amazon Dick up prices up to 50% on Prime Day. Prime Day is a good deal. Oh, no, they've lost it. Oh, they've lost it. They're being sarcastic. Oh, yeah, a chassis. He's taking a permanent intellectual vacation. Well, you give me a break. He's sharp as a tack. All right, I want to talk-- Look at that. Well, that's business. I want to talk more about GLP1s, because why not? OK, sure. Because we haven't given it our allotted time on the show. OK, let's do the rest of the show. In particular, a day when Eli Lilly reports numbers, and the stock is up 10% by the way in-- And not of that, the other drugs were good, too. Quite different from-- No, folks, performance yesterday. Well, no, folks-- With Pogo, the-- Said their competition, when people didn't realize, there's a competition between better than they are. Lilly is just crushing it. Remember, you want to create value, my goodness. Well, Rick's also realized that you need to use your balance sheet. Balance sheet, by the way, is something I keep coming back with. It's literally has separated itself from everybody else than from the student line in the street. Because they're putting up six factors. In such a way, it's just incredible. I mean, there was a time when it was just an also ran, and now it's an $800-- it's above $800 billion to get a market value. I remember. It can't let go. And Kenny said it's going to go to a trill, first drug coming going to a trillion. Well, it certainly would seem like that's a real possibility, wouldn't it, too? Yes, because we just keep discovering things. You know what, you said something very interesting. I did. Yeah, well, I'm one of many things. Oh. Remember how you said that people don't go out? They don't go out to restaurants as well. OK, now, think about this. That was-- listen, I'm hearing anecdotal credit card data that somehow they identify people who are on GLP ones, and they see that they're not going out as often. They're not drinking as much. And I said, this is-- well, we talked about that. They're not gambling as much. No, but this may be a also lifestyle drug. Yeah, maybe. Because those are all vices. Now, they're not going to do a study thing. And they want to study for alcoholism, because there's a very powerful lobby that keeps that from happening. But they say that there's just because there's a lot of different comorbidities, whatever. But the fact is, David, this suppresses-- All your appetites. It suppresses all your appetites. Right. I don't know about most of them. No, but people are going to say, you know what? This is good for your mental health. Mental health. Oh, it certainly could be. But you know, alcohol's an oboe reversing. Alcohol may be the same over half the thing for you. Mr. Rick saying such positive things about the fact that we don't even need to advertise. It's just-- they just come to us. Well, they just made it so you can get it. I mean, they finally reached-- Well, Govee's advertising. I've seen those as better advertised. It's just that the one drug's superior to you. You keep saying that, but-- All right. But they're still-- I saw you. --15%. Now, Lilly's stock has been, believe it or not, a bellwether of tech. I know. Remember when we had the big rotation going on-- Yeah. --from the mega caps, so to speak, which typically we think of as pure tech into the Russell. Lilly was getting hit as badly as any of us. And now, at one point, when Lilly-- And Nvidia was down 35 cents when Lilly reported. And Lilly's stock went up a dollar. And that went up $2. Now, it's coming back, because Nvidia's the most hated stock on Earth right now, including by Jonathan Cantor. What are they looking at? Are we in a-- you know, I said this earlier as one of the reasons for the turnaround yesterday. Are we in a holding pattern, Jim, until we hear from Nvidia, which is, by the way, still a few weeks away in terms of its earnings? Yeah, we are. Because the question is, is Blackwell really late? Can they make it up with the H100, H200, and then use cases? See, like, first, you go back to the Tesla call. People hated the Tesla call, because they thought that Elon was downbeat, and Elon didn't talk about vehicles. But Elon did spend a huge amount of time talking about us, robots. Yes. And robots are running on this company's box. You can't do good robots without Jensen. And they're just doing video. I mean, Jensen will be able to explain to you the use cases. Right. And that's what's really hurting it. It's that people don't think there's any more use cases. I mean, other than Surface now, no one's been able to say, you know what? AI's real good for us. Well, Palantir yesterday, we felt like-- Oh, yeah, Palantir did. That's absolutely right. Yeah. Palantir had really good discussions about AI. And there are a lot of companies that actually use it. And they say that productivity is-- each person does twice the work. But that, of course, means you can hire half the people. It's a lot of private companies that do really well. Accounts, law firms. They're the use case where they're paying people, really expensive people they don't need any more. More follow-up for a Palantir after that move up yesterday. That was a good quarter. Jim, wouldn't mind coming back to the banks. Of course, Jamie Diamond, as you mentioned, was a guest of our own Leslie Picker yesterday. The banks moving up with rates. It seems as though that's what's been happening. They've been whipsawed lately. Desperate to find a correlation. Desperate to find a correlation with anything. And what they ought to correlate with is the consumer and whether there's going to be a problem with credit. And right now, there's not-- We seem to be whipsawed right. There's a credit. Did you use that bogus hedge fund term? Whipsaw? Did you really try to confuse our viewers, like everybody else? I don't know. How dare you? I apologize. That's just a made-up term that just is made so that's genuine-- So many made-up terms. The one that you need to follow is capital one. So many. You have my favorite drawdown. Oh, yeah, drawdown. Is that better than carry trade? No, it's just like, oh, we had nothing to do with it. It was a drawdown. It was a drawdown. Well, these are things-- look, I was a hedge fund manager for 14 years. I like English. It's a first language, and I use it. And I'm not trying to confuse our viewers. We have to break this stuff down. Risk-going risk book, that's called meetings. What they're really saying is, I'm about to lose a lot of money because I own stocks, and I wish I was going to use it, but I own it a lot. That's cool. That's a different psychology than I don't own enough stocks. And I got to own more. But I'm just saying, we use English. If we use English, our viewers are well served. If we use Wall Street, hedge fund speak, well, just forget about it. It's designed to confuse. You're absolutely right. It is. Like, it's a special language, just for really smart. Listen, I loved-- I've followed this for so long. It used to be the LBO guys. Then they became the financial sponsors. Yes. And David, private credit. We're a financial sponsor. Private credit. We'll sponsor you financially. I met a kid this last weekend. He said they were in private credit. I said, oh, gosh, shut up. Hello. Hello, private credit. Shut up. Private credit. You don't know the difference between a product. It's huge private credit. We have pointed that out many times. I took out my sapphire card. I said, I was in private credit. It's a journal story today that Goldman Sachs is obviously trying to get bigger and bigger in private credit. Yeah, well, it's good. All the kids, these guys. All the kids, all the kids, all the kids, all the kids. They're in private credit. I just pressed that good chord to the stock. Went down 10 percent. Oh, you're doing incredible. Yeah. People used to knock Solomon. Turns out he's the winner. You're not talking about Solomon from the Bible. You're talking about David Solomon. Just making sure here. Yeah, why am I not thinking? I'm an old testament. I totally get that. You are. I totally get that. You're totally old. But I am not. You're not-- I just wanted to make sure you weren't going there. David and I, for I, is not a universal precept. No, I just think that David's done a really good job. And he's-- and by the way, thickest skin I've ever seen. David Solomon is thick skin. He needed to have a thick skin. Yeah, another guy got a good, a fitterling one. Plastic. He has plastic skin that you just-- Now keep coming back to fitterling. Well, because he's got fitterling on the brain here. I like Jim. And it's not-- by the way, Jim would say, David, it's not Dao, chemical. It's Dao. It's Dao. By the way, that does get us to some of the industrials. We saw part of the mannequin and see if they're-- well, see if some more-- The one that was. Can I just tell you that-- Part of the mannequin up. And the best one is comets. The best one's comets. OK. Yes. Jennifer Rumsi is so good. It's going to hit its new high. That's about power and engines. And Rumsi untold best industrials in this country right now. And that's-- Jim help will be no offense to the cat. Your hair looks fine. Does it? I don't know. You're playing with your damn hair. I'm talking about comets. Well, I saw a couple of strands out of place. I wanted to look good for everything. Well, that's why I wear my hair like that. Now, can I just go back? When you have comets do well-- Yes. And you have partner hand them do well in here. And you have clowns saying that there's a 35 chance for a recession. These are the companies. These are the companies that will determine whether there's a recession. And their orders are fabulous, and their earnings are great. I mean, partner hand is $13 away from being. At an all time my David, it is Cleveland's turn. Cleveland's turn. Cleveland's turn. Good for Cleveland. Cleveland's good. Cleveland's great. And New Stadium coming. Ask LeBron James. Loves Cleveland. But in New Stadium, $2 billion stadium club. Cleveland, we should do the show from Cleveland. Why don't we ever do the show from somewhere else? I don't know what he is to. Why do you and I sit here? I don't know. Why don't we just wake up and do a day show? I would love to do a show from somewhere else. I don't think these days-- No. Oh, because it came. We got to pay for that NBA contract, my friend. We're not going anywhere. In fact, they may actually just take the desk away entirely. With that save, with that save $3. Whatever it does, whatever we need to do-- We should do it. Whatever we need to do to pay for the NBA, by the way, speaking of the NBA, Warner Brothers Discovery is suing the NBA. Remember, that coverage, of course. The stock is now down 11%. I did want to come back to this, Jim, because we talked a lot about the quarter there. But there's always these rumblings. Well, could there be an activist? Is somebody who owns a good steak? And you know, the question-- If anyone's going to solve it is as well. He's been in the job for a while, and there is a question now. We got Ben Hint. Without a doubt, it was a tough answer. And the deterioration of linear networks has been-- Nothing short of breathtaking. --has been more difficult and quicker than many had even anticipated. Have you seen any industry have this kind of fast grime? Not slow grind anymore with a high, high single digit, also known as to the people that we're trying to confuse. It's HSD. But let me just address this. You know, on the activist thing, it's like, what would the plan be? An activist? Yeah, if you've got an activist, then it's not, what would you do? You'd say, well, all right, remember, we were a couple of weeks back, split the company. You know, linear networks, obviously. But it's very difficult to do. You'd really want both. Well, thankers I spoke under to at least have investment grade. Given the e-bit dot declines at linear networks, it's hard to do that. The bondholders, even though they may not have that many covenants, they may have an opportunity there to say no way. I don't believe that that's necessarily a road that they can go down. So then what does it become? I guess it becomes a change in management. David Zazoff has thought of everything you could possibly do. And I think that, short of the great man, the great American, coming back, Jip Lucas, I can't think of anyone who's really a better judge on this act. Well, the question is also if, in fact, who would replace him. So it's-- He's got the international dance. But I mentioned it because it comes up a lot. That's all. I wanted to get back to that. All right, look, I'll play my course. I happen to like David Zazoff very much. Of course, I've known him for 30 years. Look, we want to pull for him. He isn't our business. It's been a rough go, man. 35, when the deal was announced. 25, when it was closed. And the stock today is $6.86. Men is pride. It's hard. It's hard fighting a win when it's coming at you the 100 miles an hour. This stock has gone from $1.23 to $80. It's like a land speed record here. It's not an unbelievable-- It's not an unbelievable. It's a bad sector. It's a bad sector. Yeah. It's the minus 100 meters. All right, let's get to the bond market. We showed you the-- I don't know what he's doing there. We showed you the 10-year, of course, eclipsing 4%. Let's see if we're maintaining that territory. It's been quite a week. And there we are, a bit below it, $3,996. The two-year, though, yet again above that 4% yield. We'll be right back. You've probably heard a lot about the villages where the athletes stay here at the Olympics. Here at Clubhouse 24, part of the official hospitality program, they have actual replicas of their accommodations, including the cardboard beds you've heard so much about and that have gone viral, nightstands. These can be extended if you're a very tall athlete. And you can even choose the firmness of your mattress to protect your back in advance of the point of their lives. Our coverage on CNBC continues in a moment. All right, we've gotten through a lot. I know what you got on MAD tonight. It includes Dutch bros. Yeah, we have to clarify why that stock is down 28%. It's one of the great growth stocks of our era. And I'm glad that Christine Barone is coming on, because I think maybe we can break down what was said on the call and why people felt it was such a bad call. Well, what would they just-- They wouldn't give you a forecast. They indicated somehow that things are not good. The first half of the conference call was how things are great. That was this quarter. And then the forecasts in the future were really mystery to me. It was very opaque call. It was very disappointing call to be honest. Very disappointing. I know I was. And as the analyst, this has been one of the great growth stocks. We've talked about it a lot. Well, because it's a great product. We've had fun about the idea that Dutch bros, you don't want to be careful when they come to the neighborhood. Well, the Annihilary, that's the one I take. And then I get up to one. But I go to bed at 12.30. Do I want to set a wake up call for an hour before I was already-- it was 2 o'clock. And I said I'd like to set a wake up call for 1 o'clock. When I was west coast, I said, no, wake up. That's already happened. So I couldn't go to sleep. And that's how I feel about when I drink a Dutch bros. But it's positive. All right. We'll look forward to that interview. Don't be out of zimmerbile at money. And we'll just knees, heads and shoulders, knees and toes. We're going to take a break now, Jim. You did the same. I don't want to go. I really need to just keep muttering to myself. But we're not going to listen anymore. Let's keep an eye on the markets, of course. You should see the S&P. It is. It is. It's positive. It is. [INAUDIBLE] 1% we're back after this. You've been listening to the opening hour of CNBC's Squawk on the Street. All opinions expressed by the Squawk on the Street participants are solely their opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company, or affiliates. 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