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Don't miss a minute of the action. Good Wednesday morning, welcome to squawk on the street. I'm David Faber, along with Jim Kramer. We're live from post line at the New York Stock Exchange. Carl has the morning off. Let's give you a look at futures. Jim and I like to call this hump day. Being a Wednesday. It's also Nvidia Day, of course, if you haven't heard already. After the bell, we're going to get the earnings from that bell. Whether our roadmap does begin, in fact, with that very name. We are on Nvidia Watch. We're going to have a countdown clock soon enough. The semiconductor giant said to report it will be after the bell. Big implications for the broader market, for technology companies, for AI. I mean, who knows what else could be at stake here. Billionaire Warren Buffett billionaire. Greatest investor of all time, Warren Buffett. I mean, really? Unloading more B of A shares, Berkshire parsing its massive and profitable stake. Yet again, although they still own a lot of shares, we'll get to that. And we'll also have the latest read on the consumer, Nordstrom, Abercrombie, Footlocker, PVH. All the poor earnings. Say again, you'll what? I'm ready, you can hit me on that. Oh, good. I'm looking forward to hitting you on a lot. Alright, we'll start though with Nvidia, of course, given its due out after the bell. And we got a number of other earnings after the bell as well, Jim, that are not insignificant, including sales force. Tonight is huge. Give me your thoughts as we head in here. Nvidia shares, you can kind of see what they've been doing over the last month. A nice move and sort of hanging right in there at that same level, let's call it for the last few trading sessions. Well, I think there's a couple pieces out today. I'll just put the whole thing in. The rubric is that the smart guys are selling and retail's buying. That is the kind of thing I keep reading. What I'm disturbed by that is the smart guys have been selling the whole way. What have they accomplished? Retail is the one that owns it. Now, there may be these zero option people come in, they buy today, hope to win. But I think that we're at a moment where Ben Reige's from Melius has the best cheat sheet. Not unlike what you might do in fantasy football, when you see like it's McCaffrey at the top. Two billion dollar a month beat, this quarter must happen. Two billion dollar forecast rates must happen. And then a broader, long-term arc of what's going on, including an upbeat chance of mom in the club school. So you need all of that? Check, check, check. The triple Lindy. I don't like what we saw from Roddy Dangerfield in back to school. And back to school. Which was Sam Kinison? We also, you know, I noticed any number of pieces this morning, of course, going over all things related to Nvidia. How the markets reacted, certainly one key thing. I think we may have that. And, you know, the May report, Nvidia was up 9.3%. Even though, interestingly, the broader market didn't really move. The S&P was actually down in the NASDAQ. No, no, what we ever hear about is it's time to buy the Russell. I know. Look at this horse. Stiefel, by the way, has the list of the correlations too. We can get, what happened? Oh, nothing. Steve was the correlations. Yeah. And then I was looking also at, on the February report, Nvidia was up 16.4%. That was, of course, the blockbuster when everything, many things changed. And the broader market was up a lot. The NDX was up 3%. I thought we had that, but I guess. No, but look, I mean, this is the underperformer that's not underperforming, so to speak. I think that it has moved up. It's number one stock in the S&P. Yeah. It rivals Super Micro, but that was the case. Get into that. You know, David, I think that this became the zeitgeist. Well, that bothers people because it was a $500 billion company in 2023. Right. You know, that's, then it goes to free choice. No one likes that. I call it a par venue. So given the need for a triple Lindy, are you still, are you confident that it can pull it off, that it can get the scores needed to be on the podium? I think what you have here is the extension of one apples late with a, with a handset. There's what I was discussing, by the way. Well, it's going, they're late with Blackwell. What is it? Bring it back. I want to see that again. They're late with Blackwell, but that just means you can extend very high margin product. I think that once again, remember, the two things that Jensen always talks about are accelerated computing and the new industrial revolution. And he's not backing away from that. What has happened? I think is he's, I went to the racetrack this week. Always a good analysis. Sorry. You went to the racetrack. I went to Saratoga yesterday. Oh, yeah. And, you know, you'll see these. Yes. And you'll see. I love the racing form because I was racing, I was a horse racing junkie after I got out of college. Took a handicap course. What's happened is that you have these horses and when you look at the lineups, it's pulling away or going away or hung or tired. This one's pulling away. Now, I happen to think today, in the, excuse me, great company. But the training part is what I keep hearing about. The people write, what happened? Nothing. We finally got that thing I was referring to a while ago. Don't be upset about that. People write about inventing. Write for NVIDIA. So in other words, when you're the leader, like when you're the leader in handsets, everyone writes for Apple. That's why they have all these companies, too many companies from, just from writers. The same thing is happening in NVIDIA. So you have all this information continues to go to the training. And then when you buy their chips, whether you do it through Dell or HPE, you get it. You have all this information already in. Now, we can talk about Salesforce by the way, because they are one of the people that will tell you that they have the data, then they keep your data, but you still get all the panoply of all the other information. Well, let's talk Salesforce since we're kind of talked out on NVIDIA a little bit, not that we won't discuss it for the next eight hours. When are you at? 420. 420. Yeah, that's the day the world stood still. No. Michael Renny. Where's Paul? We mean actually 420 Eastern. Yes. Time is when we're going to get NVIDIA. We also are going to get Salesforce. Yes. That's before a five. A company you know quite well, who's CEO obviously you know very well. Last quarter. Not good reaction. No, it's not worth it. No, by the way, if you listen to when he was on the show, when they have money being the show, he was not upbeat. No. I mean, I was trying to get him to the upbeat, you know me. But he embarrassed. But he said was, look, we didn't deliver like we basically. Actually we have that sound from last quarter. Yeah, out. You want to take a listen? Because I saw what you did with the chart and I got nervous. Yeah, I know. No, I think we've got this. Take a listen. I can't predict what the stock market does. You know that. We've been through this how many times over a couple, I guess I've been doing this 25 years. But what I can tell you is that the most important thing remains the customer's success, which is why, how are we going to make these customers totally transform themselves more profitable, better customer success using our incredible new AI technology. And that's what I'm really excited. Well, I do know that the excitement is going to stand right into Dreamforce, which is in a couple of weeks. Yes. Are you going? I don't miss Dreamforce. Of course. I just wanted to make sure. Yeah. But I'll miss you. I know I'll be on the whole time. Okay. I just get up at three. Well, I get up at three anyway. That's perfect. So here's what Mark's been saying is most recent tweet August 19, Salesforce newest version of agent force could name Atlas as opposed to Einstein Atlas. And don't shrug about this resolves 90% of all customer increase for our top health care financial services payments travel and entertainment clients over double the success rate of competing agents. So what he's saying is he's taking share versus unknown competitors. Okay. I don't want to sell it ahead. I want a positive question to you because this morning I was speaking to an investor, a couple of, a carna, it's a private company. Carna? You know it though. I used to. I hired him for the street. All right. Private company that said with a large investor base is where we deal with these days in the secondary market. You know, 500 people are on their conference call. I know. No, it's really interesting. And they were asked Jim about, you know, AI cost savings. The CEO has asked about cost savings, what you can see, what you're seeing in terms of across the board. And this has been noted on, I think, by a couple and I'm noting it as well. They said there are large ongoing internal initiatives or a combination of AI standardization and simplification. As an example, we just shut down sales force. And within a few weeks, we're going to shut down workday. We're shutting down a lot of our SaaS providers and we're able to consolidate and with the help of AI to standardize and create a much more lightweight tech stack to operate more effectively with higher quality. Okay. That's got some people. That's gotten some people's attention. Right. That's the existential nightmare that you don't need sales force against because you don't need coders. You just, I mean, Mark has been, Mark Benham has been adamant that yes, you can talk. He likes the democratization of what's happened here. You can speak right to it native language. However, he comes back and say he, along with, by the way, service now, let's make sure that service now is, I wonder if they're going to call it service now, that'd be interesting. That Mark and service now are saying, listen, we've figured out how to use it for you to sell more product. So that's interesting. The client says, now, now workday is about human resources and about finance. Workday in the previous quarter said incredible forecast given an amazing forecast. Stock was down 20. And then they get the forecast in the cough school. Stock reversed up 40. Absolutely. But I guess the, the, the, obviously these are companies that are potentially huge beneficiaries of AI in terms of their product portfolio and what they can offer at the same time other companies. And again, this is a private company. It's one example, but you never, but you don't usually hear those kinds of things on a call. Obviously it's not a public company. There are large ongoing internal initiatives, combination of AI standardization simplification, which means they're getting rid of these providers. I will ask Mark tonight about that. That's good. Good information. I did not have that information before. I know the client is very good. I also can see why they would want to use Salesforce to get more customers. So it's a natural. Yeah. Not when you want to use a similar to a firm. Yeah. Well, I have a firm on tonight too. Klarna is just, you know, people like, well, you can help you build a subscription business with Klarna. Very good product. It gives you lift. Salesforce gives you lift. I brought it in the street, I brought it in Salesforce twice to give you a very big lift in the subscription business. So you don't want to hear another subscription business, not want to use Salesforce. They don't compete with each other. That's a good piece of information. I will try to get that to Mark. You want to make some bets right here in terms of the aftermarket performance, both Salesforce and Nvidia or is that just, that's just, that's just right. I don't know. I mean, you know, management would love us to just turn into a betting show, probably, right? So well, then that's just, give me your best picks, Jim, management stock, Oh, what's this spread? Because home, you know, play that game. I think that when you have Salesforce stock to go down to 220, I don't think it's a great quarter. But I also, like I said, you're going right in to, to dream for us. It's never been a great time to sell Salesforce, but the stock does not act that well. Nvidia is, please come down, please come down. Sorry. I want to buy more and say, uh, own it, don't trade it because what'll happen in, it look in videos about Blackwell and Blackwell being pushed down, Blackwell is, is about video. Remember, we do not have the complete video. You put in video of everything and then a robot. I mean, I wish we had, could you go speak to Elon, because I'm sorry, I didn't hear that. Say again. Who's got the best robots? But you get me confused on all your robot chat. No. Okay. What Jensen's do, the next level that Jensen wants, guys, is that you, remember he's come up with the, um, anything I can do, you can do better theory about robots. Does he make robots or not? No, but you, no, he does. He does. He does. He has a, he can make quality robot. Does he make robots? Yeah. He can make robots. No. Does he. It's not a job. Optimus is a product line of Tesla. He does not have a robot product like Cori. No. Doesn't compete with his customers. Okay. I just want to make sure. But you, why do you always talk about robots having to do with Nvidia? Because that's the next generation. So did they make that robot? That's a funny robot. He taught me Jensen. That's a funny robot. It's not real. It's just for show. It's a Star Wars robot. It's not real. Okay. It is. But he said it right up front. That it's not real. What I'm saying is, is that you need robots to adopt Blackwell. If they do it, then the robot can be human. Okay. And remember, the Blackwell chip will be in the robot. You can make decisions. Or it'll be, it'll be communicating with the data. Thank you. Yeah. It's very good. It won't be on the edge. No. It won't be in the device itself. No, but Apple. Can I mention Vision Pro without you laughing at me? Sure. The Apple Vision Pro when teamed up with Blackwell can make it so that you feel like you're in a car if you want to buy it. So you go get this. Carvana. This is my thinking. I want to get to Earth. Carvana gives ease away. Okay. Vision the car and that cuts down the numbers of cars that you send back because you don't like them. They're not giving them away. They're really expensive. They're not giving them away. No, you borrow them. Oh, you borrow them. You borrow them. I see. Look, I've got this all worked out. You've got so many different business plans. I have a business plan for everybody. You can go to my new Mexico. But nobody listens. No one. No one. No one. Do you know that no one listens? No one. I have unbelievably good ideas. Unbelievable. Unbelievable. Now what they listen to me on? You have to go to a commercial. All right. Coming up. Warren Buffett's Berkshire Hathaway sells more shares of Bank of America. Also, the Berkshire itself is moving very close to a trillion dollar valuation. We're going to take a closer look at that. Why don't you take a closer look at futures, of course, as we get ready to begin trading here at the New York Stock Exchange. 16 minutes from now, a lot more spark on the street straight ahead. Support for this program is provided by Chevron. The anchor offshore platform is utilizing breakthrough technology to enable us to produce oil and natural gas in the U.S. Gulf of Mexico at pressures up to 20,000 PSI, a new industry benchmark. 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Works your half way. Moving closer to joining a lot of those mega tech cap names in an exclusive club, Warren Buffett's company now within striking distance of a trillion dollar valuation. Very close, in fact. Separately, Berkshire disclosing its old and additional $982 million worth of Bank of America shares. That's according to an SEC filing. Sales took place between August 23rd and the 27th since mid-July, Berkshire has reduced the stake in that bank by 13 percent. Although it is still B of A's largest shareholder, it's got 36 million shares. He still represents as much as what 12 percent of the company's overall shares at some 928 million shares. So, important to put these things in perspective, Jim Berkshire itself, fascinating. I think we do have a chart of it over the last 10 years versus the S&P. You have absolutely wanted to own Warren Buffett's Berkshire without a doubt. Look at that out performance. Quite nice. We talk a lot about how much cash they have there, and they continue to raise it by selling steaks. Obviously, the largest of which has been basically cutting in half their most recent stake in Apple. They now have 400 million shares of Apple down from what had been over 800 million shares not that long ago. I think that you're getting the opportunity to buy a high-quality bank at a nice discount for JPMorgan. Bank of America is actually, they're going to get hurt in terms of earnings, a short-term, from Fed cutting, but they make it up in a lot of other things, by the way, just lending. It will be very positive. And David, back of America, remember it had that troubled bank portfolio where their treasuries were? No, they have a loan portfolio. They put on a large treasury position when rates were quite low, and obviously as rates went up with the Fed continuing to raise, the value of that portfolio went down. In Apple, it's rolling off. Yes. It's running off. It's running off. It also does better in this rate cut scenario, then. Without a doubt. It turns to a reasonable reason why not to him back very well. Let's talk about Warren Buffett. Warren Buffett rang the register on a beaten person, this Apple, but kept the position. Yeah. I mean, it's still 400 million shares is still, what, $91 billion raised. I think that we forget that the immense numbers that he has, now, I'm sure someone out there is saying, "Well, wait a second. He's not selling Coca-Cola, he's not selling American espresso." It's always talked about the bases being sold. Well, I do wonder, Jim, is what he's going to do with this stock? It's $277 billion worth of cash. It is a great wonder. It turns '94, by the way, tomorrow, I believe, or two days. Oh, but I think that as many people are, I think he's waiting for better prices for heaven's sake. I mean, why not? Although, he likes the oxy, I mean, he loves the pipelines. There are plenty of pipelines that are still cheap, but I cannot get in his head anymore that I can tell you the precise number of what I want to see from Jensen Wong tonight. We didn't mention Jensen during this block, and we haven't mentioned Super Micro, and the delay form 10K filing just now. Yeah. You know what? Suboptable. You can either hit that in your mad dash, if you want, or we can do it before the belt, but let's get into that Super Micro a little bit more. Sure. I'm glad you mentioned it. Think about what you want to do for your mad dash, will you? Yeah. Okay. I'll probably use Super Micro. Unless you want to do the footlock, or can you give another look at futures if you want? We open enough for trading here 10 minutes from now, don't go anywhere. Support for this program is provided by Chevron. The anchor offshore platform is utilizing breakthrough technology to enable us to produce oil and natural gas in the U.S. Gulf of Mexico at pressures up to 20,000 PSI, a new industry benchmark. Anchor is part of Chevron's plan to produce 300,000 net barrels of oil equivalent per day by 2026 in the U.S. Gulf of Mexico, home to some of our lowest carbon intensity producing operations. With energy and progress, visit chevron.com/anchor. 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 to Squawk in the Street. I want to get to a mad dash here. Jim and I kind of working through some of the numbers on Smucker, Jim. They cut guidance, which seems to have been a surprise to some investors. Well, this is what I required as being the, I don't want to call it a nightmare scenario, but the, what was the most concerning, disconcerting part of this quarter, is that remember David, the $5.5 billion, $5.6 billion acquisition of hoses, which happens to be anniversaryed in less than a month. Okay. Well, in the research, the actual release, get this, the sweet bake segment delivered net sales below our expectations, the first quarter, primarily driven by the macroeconomic environment and the slowdown, the convenience channel. In other words, this thing is not panning out. So then the question is, is it really macro? Is it really at the client and convenience center? Maybe like Celsius would do that, say that, or David? Is it the endless pin the tail on the GOP dash one that no one's willing to, man? Oh, that's interesting. That's an interesting one. Yeah, that's an interesting one. And there's also this, remember, there's, there's this move, David. I know this is going to shock you, but you have kids in this, getting into sweets, but to be healthy eaters, you and I were not healthy eaters. No. I mean, I would eat everything but soil and cream, and I would basically grow up on Hawaiian punch and pop tarts. Yes. That's why I, that's why. You crustable. Yeah. You're right. And grow. But I do think that this is going to be a sense of, wait a second. Do you really think it's, it's, it's macroeconomic? All right. Well, maybe it's just the Twinkies no longer have the learner don't know if the accent that they had when we were growing up. They lower bottom line guidance, softness across foods. It's not good. That's the headline there. It's not good. We'll get to all the retail names that we've got for you as well, reporting earnings. The market was flat. Wake up Starbucks. We're right back. I didn't want to come back to a super micro, certainly a name we've discussed many times. In fact, yesterday when Hindenburg, that research firm that puts out long reports as to why it is short a stock did just that on super micro, which pressured the shares. Although they did come back, at least the last I had looked. I'm not sure how they closed yesterday, but it had been, it had been down a lot, but it rallied. You can see the timing is everything because this morning now completely perhaps having nothing to do at all with, with Hindenburg though, was alleging certain, you know, accounting issues, I believe it's fair to say, Jim, they do say additional time needed for management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting. That's as of the end of June of 2024. They haven't made updates towards results for the fiscal year and quarter, and therefore they are delaying their 10K filing for the fiscal year. But look, I think that if you go over Hindenburg's, the incredible work that he's done, and I want to nearly contrast that, that they've been on twice with the JP Morgan defense of it. All right. You come up with something that says maybe, maybe there is something new, JP Morgan says there's nothing new, but why would they delay the 10K if it works something new? The piece itself is very damning. And what it says basically is that they are, I don't want to say that they're way to funnel ships away from two other countries, Russia, maybe China, but you do get the feeling that SMTIs plan to be way too close to the line. They still do a lot of business with Meta. They do a lot of business with Microsoft. So I think what you can say is they do have clients, but we're going to hear from Michael Dell this week. And that's one more note. Michael Dell is direct competitor, a very competitive fellow, as you know, HPE direct competitor. What we need to see if you're short is that SMCI has lost a lot of business to those few competitors. However, I also would point out that this is a sign, this news this morning, is a sign that I would say that you can't be oblivious to what Hindenburg is saying. I have an unbelievable compilation of how Hindenburg is done and you just don't want to be in the future. Well, we all remember, I mean, they were Nikola, right? They were, yeah. Yeah, they were grow generation, which I went head to head with them saying, look, this thing, which is about growing hot, it was like at 15, I said, this thing's going to 50, before it goes to five. He said, yeah, it does go to 50, but then it is going to go to five and then it turns out to be going even lower. He's very smart. Nathan, he's very smart. And I don't like, if I were in supermarket, and I've had that again, and I've had them one twice, a couple of times when they've done secondaries, right after, of course, remember, they just secondary right after they got into the SMB, I don't like it. I don't like it because there are too many questions, but let's give them this. We need answers on all the charges. We can't have it just be that, you know what, these charges are old because they're not old. They're current. Okay. I mean, says, oh, but I'm not buying that. And what happened this morning with the delayed 10K tells me that if you buy JPMorgan's view, you may be hurt. 35 million dollar company. Well, certainly it is certainly impacting investors again on the back of that Hindenburg report. And again, just to reiterate the news itself, file a notification of a late filing of their annual report, unable as a result of meeting the prescribed time without unreasonable effort or expense. They need the time as well, they say, to complete their assessment of the design and operating effectiveness of its internal controls over financial report. And that's really the Hindenburg's real analysis is that they don't have good internal controls and that they have a history of not having good internal controls. I think we need to hear from Charles Lam, we need to hear from super regular before we just decide, you know what, this thing's just a colossal, whatever. I don't want to even use the terms. But I would point out David, it's going to be reflecting negative on Nvidia, and that's a big mistake. It should not have like, negative on Nvidia, for example. Right. Let's move on to retail, shall we? Yeah, sure. But was that bad? I mean, I did my best on that. Well, you did very well. Would you like me to grade you in real time? Is that what you mean? No, no, I played that. I did that with the LSAT. With the who? LSAT. Oh, with the LSAT. I got a perfect on that. Everybody, I don't know if you heard that because he mumbles, he got a perfect score on the LSAT. Well, I were so proud of it. That was because they took Kaplan and they had... Was that an oral exam? Was that an oral exam? Did they actually have written paper back then? They finished it in the 1990s. Everyone, I'm bragging about something that happened 40 years ago. You never ends. You're bragging, never ends. All right. I was living in my car and I did... I was living in my car and I got a perfect score. Come on, man. Let's go. Come on, man. All right. You want to talk about Coles or Nordstrom? I want to talk about... Or... Ah. Footlocker or PVA. Okay. First Abercrombie. Okay. You have control of the board, Jim. Nordstrom, people initially said, you know what? Not good enough. They decided, well, wait a second, the rack off price is really becoming a substantial part of the company. So therefore, you should be a buyer. They have 269 stores, 34% of sales, and we love off price. Nordstrom's fine. A&F is actually good, but the shorts are pressuring it down. They want to do that. The stock has been an incredible horse. Fair and large to be in a remarkable job. Wow. I mean, they had... The shorts want it down. Abercrombie. I mean, yeah. I've got... It was great. But... Comstered sales up 18%... Broad-based net sales growth across regions and brands. By the way, their commentary was generally quite strong, better than expected summer and back to school. Why is the stock getting hit? Because it's heavily shortened and they're trying to color the trade. That's what's happening. Okay. Okay. Now, by the way, David, if you want an interesting one, it's Coles. Now, this is Tom Kingsbury. Everybody knows, remember from Burlington, who's so sensational. But I will tell you this, Coles is about Sephora and Sephora sales increase approximately 45% in Q2, including carpal sales up low teams. What a genius to bring in Sephora. I believe Adrian Shapiro is an important advocate. They cut underlying sales, underlying margins, but they raised their fiscal year EPS guidance. Yeah. But I think, remember, Ulta's got an extremely potential impact from credit card, late fee, regulatory changes. I know. That's what... That distorted the earnings. Okay. Now, customers did exhibit more discretion in their spending, they said, during the second quarter. But it's pressured sales, even as customers transacted more frequently. No, look, it's not a great story, but I'm talking about... I am moving away within the store. You know, Coles now has branded Coles Sephora. Yes. And people keep cutting numbers, Ulta, which reports tomorrow. Now that I've read Kiss, as we call it, Coles, I believe that the problem is Sephora. It's taking Big Share from Ulta. So let's be aware of that. Okay. And PVH. You want to do that one too? PVH is just a straight out, kind of odd. Look, Tommy Hilferger did really good, Calvin Klein did really good, but we don't think it's going to be as good going forward, it was very odd. Because there was no evidence for them to be able to say this, but they know more about it than I do. They guided their fiscal third quarter below a lot of where the street was estimated. Yeah, they did. I do. There's the stock reflecting. It's reflecting. I can't. I cannot make a case for that. I'm seeing some commentary. They do have a tendency to guide the quarters below. They do. But this tells me that's not a sentence. This delta to street estimates is wider than usual. And therefore, even if you say they're conservative, there's still some concern. Well, this is Stefan Larson, who's very, very good, but it's not Manny Chorico who will come on man money and tell you, hey, listen, it was a good quarter, it was a good quarter. But we don't want the next quarter to be a tough one. Why? Because that's the holiday quarter. Okay. Sure. I want that. Let's go. Can you go back over the A&F? Look, I just want to be sure. Yes. Yes. Okay. You know, Europe is 16 percent. America is 23 percent. This is for sales. APAC, could they be worried about that? Plus three. But David, here's what I like, which is why I don't like to bet against it. We have gross margins of 240 bibs, operating margin of 590 bibs. David, you don't mess with a company that has that kind of gross margins. Okay. Well, right now they are messing with it. So look at the Q, here's what they're doing, they're looking at Q2 year over year. Q2 last year was 731 million, now it's 931 million, that's again, 23 gain. All right. The stock is heavily shorted. People want it lower. I'm not going to get in front of a freight train, because I'm not playing the movie the future. Okay. Let's finish this off by talking a little footlocker. We can get to Bath and Body Works if you want as well. Footlockers down 14 percent. All right, so that's what happened. Tiny companies. I mean, $2.6 billion market value. I spent like hour one, hour and a half for them. Well, you shouldn't. Well, no, no. Okay. So Mary Dylan, who turned around Ulta, goes to Footlocker. Yes. The turnaround plan is in place. All right. Well, the comp stores are better. Does it work? Gross margins are good. Listen. Okay. I'm listening. Gross margins are good. Comp stores better, but she doesn't guide up. Now, why would you guide up? Because she's not making money. But the inventories are down very good, David. By the way, stock was up what? 32 percent. Yep, wait, it's had a big one. The inventories are down. Yes. And the gross margins are up. It says returns at play. Those are the things that you need. The inventories lower. They're still too high, but they're coming down. Top line trend strengthened as we move through the quarter. Right. And one I think from the call, including a solid start to back to school. Right. And that's very positive. And she highlights that Nike's back in a big way. Finally, Donhoe recognizes he needs the Footlocker channel. A6 is doing well. There's an odd one. Mm-hmm. And David, new balance is so back. And Adidas is coming on. So they've got, and she won't even go in with her hoke and on on. But I'm just saying that Footlocker is down because it's up a lot. OK. And because she didn't guide up, she does have a new flagship store in Midtown. And I think that she's good. I would not bet against Mary. I understand why you're talking to the other side of a number of trades this morning. Well, I am. Footlocker, Abercrombie. I am. OK. That's fine. I think that that's what it's worth. I like it. Wow. I like it. Finally, Beth, I'm sorry. Beth and Body Works. BBWI, the symbol, about a seven and a half billion dollar market kept down about four and a half, five percent. It's a mall store. You know, it's not sales down to 20. It is surprising because if you're in a, if you're in a Simon property mall store like they are, they should be doing better. By the way, the stores that are in the Footlocker stores that are in A&B malls are doing incredibly well. She still has to get out of some mall contracts. But I'm not betting against Mary in 28. OK. Very good. OK. She's better than very good. She's really good. Do you want to do crowds right? It's right. We haven't done crowds right. Sure, do it. OK. I said it was bottom. It bottomed to 230. So far I'm looking good, but it's a very short term. But it reports tonight and I think that what they can say is other than delta, I don't think they lost a lot of customers. By the way, in the cash Aurora, I go to him to try, Palo Alto, I go to him to try to slag George. You wouldn't do it. But Sentinel One has no problem slagging George. And sure enough, Sentinel One reported numbers that weren't bad, right? Good enough. Not good enough. I mean, look, I got to see that. No more wine garden was just putting him basically slagging, really slagging George Kurtz, who by the way, has won major races. You know that? Yeah, you always come back to that. Well, because he's in these races. He doesn't exist. Nobody cares. Nobody cares. He doesn't need sleep. And he's in these races that go for like 36 hours. It has nothing to do with anything. Well, what does Sentinel One, what is the way, what like Camus? We're seeing it. Camus and customers, that's a wine. You love that. That I'll talk about all day. Okay. What, the Sentinel? I want you to have another one of those parties where you serve the Camus. And we are. Oh, good. 50 years and possibly yet. We're seeing a distinct rise in customer interest and appreciation, says Sentinel One for the advantage of our patented AI power singularity platform. If it was as good as as Tomer said, they should have had better numbers. Sorry, Tomer. Okay. And I like Tomer. He's great too. One of the largest electric vehicle makers in the world is BYD. By the way, a Berkshire ownership stake. They own 4.9% of BYD. Yep. They're making a lot of vehicles delivered 426,039 fully electric vehicles in the second quarter. That was up 21% from a year earlier, didn't quite out do Tesla if you remember, which delivered 443,956 units during the same period. But they're selling them all over the world. Yes, they are. Now, Dave, there is a backstory here. Not here. Sorry, but not following the backstory of Germany, doing a huge amount of business with China in return, taking their cars. I think Germany is a country that is of tremendous significance for not just what they're doing in terms of cutting and how much money they want to give to Ukraine. But Germany's really China, a great trading partner. And if China's really hit that road and being that friendly with Russia, maybe Germany's just getting a little too neutral on what Germany's doing, closed all their nuclear plants. Like they closed and knew them all now. Meanwhile, we're trying to think about opening a nuclear plant off of, in the Midwest, in Detroit, right in the area. Michigan, yes. By the way, there is a remodel and recommissioning. And one of the, there is some talk about one of the reactors, the three mile island, not the one that almost melted down. We need to speak to Patty Poppy. Patty Poppy is the CEO of PCG&E, which is a safe consumer, by the way, and really understands nuclear, knows the Diablo Canyon project. Well, it's not a project in the West when I was growing up. But she is very pro-nuke and that stock has been a whores. Something on my radar, Jim, and I know that you've talked about it a lot. I just wanted to note Walgreens, Boots of Lion shares. He's still got some things to sell. Let me, let me look, take a look at a 10-year-old. I'm talking about Tim Wentworth, who's a total hit. Right, Tim Wentworth took over for Rosborough. He's a new CEO, obviously the deal that, in which they acquired Boots, remember, it was back in 2012. They bought 45%. It was owned, part by KKR, which then ended up owning a decent amount of Walgreens for a while. Brought Stefano Piscina into the company. In 2014, they completed that. It has not gone well, anything there. And obviously, you've talked often about the competition they're facing from the likes of Amazon, so many pressures on the business. Look at what's happened there to that company. We're talking about it below an $8 billion market value now. This company once had a $70 billion, $80 billion market value. It was in the Dow, but the Dow, I know, was out of business. And yes, there's still some chatter about will they do something with Boots? Could they take that public? That's the European operations, essentially. Is there some sort of exit that they can rely on there? These are happening so soon. It's not worth. We lauded him at the time as a great business guy, incredibly wealthy, obviously, still pretty wealthy. Wow. That is wealthy and a diminution of value. Okay, so I think there's a couple of things. They do have, they've got a stake in bright spring health services that they can sell. Okay. What? I'm just trying to give you a blueprint here. Okay, give me the blueprint. Sure. You got some land in New Mexico for them, too, in case they want. That's about 500,000 acres that I took an option on. Okay, so here's the, that's not true. Yeah. But I did isolate 500,000 acres just no one took me up on it. Okay, so here's the problem. Well, it's too full. Yes. One is that they have to figure out how the difference between the front and the back. Because what they really need to do is instead of going through the Cheetos aisle to get to the health aisle on the back, they have to become really just a health care school. They have to get the other stuff out. But second, David, when you talk to Amazon, Amazon wants to do same day batch. Yeah. So let's say you put it in order and you want Colgate. You want a toothpaste, Colgate's quarter made, you think of that was really good. And then at the same time, what you want is put some boots, dog food, whatever, cat food. So what happens is they can batch those orders, send it to you. You order in the morning, it's going to be at your home when you get back. So why would you stop at Walgreens? And that is the existential, why the existential man? That is the existential issue. That is just one way ticket in black and red. Yeah, I don't know. I don't know. Tim Wentworth is really from the PBM, the pharmacy benefit side. So I think he's going to work out something there. But at the same time, the clock is ticking for anyone that Amazon, I mean, is it borders? Is it borders? That is the question. I know. And I just put that in with Tim Wentworth since I'm a fan of it. Or Barnes and Noble. Len Rich here died, by the way. You see that? He did. A great help to authors. Yeah. And that matters. Authors need help. I know. But nobody reads other than you and me, maybe. What do you mean? I'm reading three different things right now. Really? Yeah. But I'm having some trouble getting through a lot of things. I just finished the last stand in case sign, which was correct. Oh, yeah? Yeah. I think case sign is unfortunate. Well, people say it was the Marine Corps. Right. That is the last thing I wrote with the Eric Larson book about the beginnings of the Civil War. Really good. I just got that. Really enjoyed that. Yes. Yeah. I just got to talk about World War II again, because we always have to be aware of what literally. Or origins of World War II. You want to talk before we go to a break, you want to talk chewy, because I see the stock up eight and a half percent. Yeah. Well, chewy beat the quarter. And I got to tell you, we've been recommending chewy ever since, look, this guy's summits singing. He comes on the show. And the stock is 19. And he says, I said, why are you on? And he goes, because it's the bottom, well, I mean, this guy has never hyped the stock. He called it a bottom. And this is a great automat, this is a company that is going toe to toe with Amazon. And even Ben Stoto, who was my chief scientist and research director for Mad Bunny, he has this dog, Riggins, which is not named after the Washington commanders, but you won't tell me what it's really named after. Actually, John Riggins was a New York jet. Okay. Just so we're clear. Okay. But there's Riggins himself. Wow, a face that only a mother could love. Yeah. Ooh. Wait. Who's that? It's Riggins. Riggins is like $79 a month in auto, auto-paid and chewy. We tried, you know, chewy made a great picture of one of our dogs in Nvidia, actually. I have a great picture of Nvidia. RIP. Oh, see? That's what he's saying. No, I just think that chewy is back and there's, they have a good model. You have to put it on. All right, Jim. We went through a lot there. But we're not nearly done. We're not. What we have to do. We have to go to the bond market for a moment because it is important, very large market. Let's take a look at how treasured we're firing this morning. Of course, we've been keeping a close eye on you ever since those comments, well, always, but certainly since Friday, Powell talking about a rate cut, still some debate, 25 or 50, most likely 25 when we get the meeting in mid-September. There's a look at the 10-year at 3.833. We're back ready for this. All right, here are the laggards on the S&P there. I'm supposed to meet a match back. It just doesn't stop. The sellers won't stop. An arm totally correlated with Nvidia and Super Micro correlated only by itself because of Hindenburg. 20% significant loss from Super Micro, as we told you earlier, delaying the filing of its 10K internal controls. People don't like to read that. Do you hear from the company? I don't like to read that. Let's hear from the copy of before we draw it on. What more are we going to hear? They put a filing out. You're supposed to say that as a journalist. All right, we got to stop trading with Jim coming up. Stop trading with Jim? Yeah, I'm going to talk about a company that I think is emblematic of what people are buying right now. I talked the other day about AZAC being the one that's decking that is made of a recyclable material. This morning, the most of the journal was lower rates by Stanley Black and Decker. This is one that I agree with my trust. Now, this stock that's been cut in half, there are a lot of people who feel, well, you know what, they haven't really gotten their act together, but you feel the way about Home Depot. If Home Depot is going to turn, Stanley Black and Decker turn, so I really like the piece. I think it's really right. Okay. Before we get on the program tonight, anything else, anything, I can give you 35, 40 seconds. I just want to tell you that we really have to stay focused on SMCI because it's a correlative to Nvidia, even though I don't think it should be, they remember they have real customers and real customers in Azure and Microsoft, but there's obviously a concern about where they're putting all the chips at this time. Of course, speaking of Nvidia, those shares are down another one and a half percent ahead of, of course, four, we don't have the countdown clock, I thought we should, you know. Up and look, okay. You know, this is... It's a long term story. This is a long term story. It's a long term story. Dan, I've said, maybe not just the most important earnings of the year for the stock market, maybe of years. But was he wearing the pink jacket or the yellow jacket? Yesterday. The yellow jacket. I couldn't even describe what colors they were. No, that was... I don't know. I don't know what club he's a member of. But I do think that we have to get away from this idea that today is the be-or, Nadal. And Berkshire has hit a trillion dollar market value. Kudos to Warren Buffett. Well done, Warren. Nice birthday present. Yes. As much as 94. Look, I mean, we gotta stay on the show. Okay. So I have a firm. Max Levchin. He's always entertained us by now. Pay later. We know that that's something that is still, not even a craze anymore, it's just something that people do. And then Mark Benioff, of which we're going to ask him about Klarna and everything else, an artificial intelligence and what it means for Einstein, what it means for having the data. And remember, Dreamforce is coming up, doesn't pay to jam the stock down to 230 if you think you're gonna do that. David, I'm out of breath. Good. Take a breath. Yeah. Maybe you can take a couple. I'm gonna send you more stuff on something we talked about during the break. Send me a lot more stuff, please. Okay. All right. More on what to expect from NVIDIA's earnings. Uh, if you haven't heard for 20 or something, don't, don't, don't, don't, each up on its own bottom. This is not a reflection. SMCI. No, don't draw any conclusions, okay? 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. You may have been previously disseminated by them on television, radio, internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information, Squawk on the street participants consider reliable, but neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. To view the full Squawk on the street disclaimer, please visit cnbc.com/squawkonthestreetdisclaimer. Imagine earning a degree that prepares you with real skills for the real world. Capella University's programs teach skills relevant to your career so you can apply what you learn right away. Learn how Capella can make a difference in your life at Capella.edu. [BLANK_AUDIO]
