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Welcome to Squawk on the Street. I'm Carl Kingston here with Jim Cramer at Post 9 of the New York Stock Exchange. David Faber has the morning off. Stocks do look to add to Tuesday's losses. Worst day for the Nasdaq since July 2nd, worst day of the year. NVIDIA is down another percent. The two-year yield at a 16-month low. A roadmap begins with this tech-fueled sell-off. S&P clocks. It's worst days since early August. But there are areas of opportunity some stated by the dip. NVIDIA is under pressure again after the biggest one-day market cap wipeout for any U.S. stock in history. The chip maker reportedly now facing that escalating DOJ on a trust probe. And the state of the consumer, Dollar Tree and Dix, the latest to deliver some cautious guidance. Let's begin though with the markets after the sell-off yesterday. Jim, looking at what you wrote this morning. It doesn't sound like you think this is a growth scare in the classic sense. Exactly correct. I feel like there are many situations that are individual in each sector. For instance, just take last night. Sea scalar. People say, "Good's Jay Shorter is going to be on a later day afternoon." Saying he's very cautious on buildings. Yesterday, we have a lot of people saying, "Okay, Super Micro is really in trouble." We have another Super Micro Cut. Intel obviously very, very trouble. So it was not just NVIDIA. We all make it sound like NVIDIA is the sun and everything revolves around it. But there were a lot of negatives yesterday. They were all individual negatives. NVIDIA, I've been saying, "Let it come down." Look, I love NVIDIA. Everybody knows that. I hate the love. I shouldn't say it because it's just a stock. But I've been saying ever since the quarter, "You've got to let it come down." And don't be a hero in this. I mean, I tried to compare it to last night to the cowardly lion. Because counting you guys to stop me basically before we go into it. And I feel that that's the way it is. We talked yesterday about the Michael Semblis note out of J.P. Morgan. That was the factor. We looked at not just the argument that competition is coming for NVIDIA and their historic margins and market share. But it sounds like he thinks there should be more progress by now on some of these use cases. Okay, I think that's really great. Because there are a lot of people who told me why it was down yesterday. And they were all wrong. I mean, it's down because Michael Semblis is one of maybe the most powerful strategic thinker right now on Wall Street. Yes, he didn't reveal he is a friend. But so what? So a son this weekend, a son is a great fisherman. Just like he's that. Here's what the problem is with NVIDIA in that piece. He does say that there's competition. And he really kind of signals that it's AMD. I, with Charleston's AMD, any video I want. I think Lisa Soothing a remarkable job. I don't think that she would even admit that there's competition for no video. I think Intel, let's just take them off the table. We've got to stop considering Intel as a competitor to anyone other than itself. But there was that notion that mainframe spend was all wrong. And there was the 2000, oh my God, the 1990 to 2000 fiber connection. He compared it to that. I wanted the vomit when I saw it. You know, I think that Michael's terrific. But let's just understand this. These are going down because they're real thinkers, big thinkers who read Michael Semblis. And they just changed their mind. One of the few people makes you change your mind. Jim's referring to this chart, which I think the booth has, where he looks at data center revenue for Nvidia versus IBM peak revenue in '69. And Cisco, Nortel, Lucin, peak spend in 2000. Look, I remember that anyone who members the Cisco, Nortel, Lucin, knows that that was a collapsed situation. Nortel just immediately collapsed. Lucin collapsed. It turns out that both of them had accounting issues, so it made it even worse. Cisco got to some outrageous multiple that was undeserved. And when I, I never attacked Michael, but I did say, listen, all these companies, give me a break. The companies that are customers are absolutely just, they're nation states. They can print money. Nvidia himself, Jason Wong, has said over and over again. And CEO, look, if you buy our stuff, you get an amazing return. And his demonstration is an amazing return. And that was ignored by Michael. And that was painful. But can we have no doubt about it? The idea is so chilling, that it might be mainframe or fiber, that it made you think, let's step back. Now, I believe this was going to be the case because this was the quarter where you should have seen that there are a lot of companies buying Blackwell because they believe they can make a lot of money with Blackwell. Instead, we got not enough Blackwell, and we started thinking, wait a second. Maybe these, all these, what we call them, hyperscalers, detectives are dreamers. Now, in return, I would say, is really, is Mark Zuckerberg a dreamer? Mad AI runs a little bit slower than the others. So the only way to speed up your, I don't want to speed up anything is with Nvidia. The only people seem to realize and went from, went from hold to buy yesterday in terms of the power of Nvidia, was the Justice Department. Yes. So we're left with these Bloomberg headlines for now about the subpoenas, Jim. The notion is, do they penalize customers for not being exclusive? Do they make it hard to switch out? Okay. So let's first deal with, with a subpoena. When I saw that story, well, Bloomberg is doing some great reporting. I'm doing it other than that. But the Justice Department are already seeing what they're interested in. Do people real think that they pick up the phone? Hey, gents, gents, can you send her some of those documents? It doesn't work like that. You have to operate with subpoena. Now, we're all scared. When we see subpoena, we think, whoa. No, I mean, you can't just call the CFO, Collette Crass. Hey, Collette, could you send me 15 million pages of what you've done? Now, the other problem is, is that, okay, so you're in video and you're trying to allocate everything. So everything's a short supply. Are you supposed to give the customers who have not put in big orders the next round? I mean, what are they supposed to do in video? Are they supposed to say, you know, we got to sabotage our business because we're about just one. Now, there wasn't a time. If you go back to, let's, let's enjoy ourselves with a little symbolist nostalgia for others. If you go back to 1990 to 2000, one of the principal worries of Intel was this. It was just this, the idea that they're monopolist. But they got lucky because they had AMD and they could always say, listen, we have 90, AMD is 10. I mean, it's too bad that Nvidia can't find someone who has 10. I actually felt that the cure for any antitrust is that, is that Lisa, Lisa Sue, AMD picks up and does it again and gets Nvidia out the way they were able to bail into from the investigation. But please, this idea of a subpoena. They can't just send them a letter saying send it over. They have to do that. And one of the things that Nvidia has, they have to deal with is what do you do when everything's in short supply? Who do you give the next round? Do you just, do you go after your big customers or do you give things to your small customers? Which is like, if that's what they want, that's the equivalent of like, you know, it's something like socialism. So you think they have ready answers for whatever DOJ has questions? The statement that I love, the quick statement that Nvidia said, which is, look, we worked really hard. And we have this position. Now we know from Google to find them as monopolists, and by the way, anybody's monopolists, it's how they abuse the monopoly. Remember, we have to go back to why this all happened. It was a standard oil at 100% of the market. And every time someone knew opened up, they came in and directly underpriced them and that wiped out that competitor. That is not happening here. They don't have any competitors. So the question is, what do you do when, if you're the just partner and you go after a company that has no competitors, but they seem to think that it doesn't matter. Like Apple's really great. So maybe we should look at that. I mean, that seems like, is that really the point? I mean, Jonathan Cantor, he has to deal with why Intel didn't do a great AI chips. It was not because this company in Nvidia is a monopolist in behavior. Google, they claim Muslim monopolist in behavior, and they won in court. This is much tougher case. So the long time saw has been one man's margin is another man's opportunity, right? Exactly. It's not a 100% share, but it's 90% share with this company. But we always remember US search codes, just the great one, because they had gigantic margins. You know, margins in the 30s and 40s, and then suddenly J and J went into the stapling business and they came in with 18% margins and that was much higher than the normal business. So there's a company we think they're going to come in and have margins that are much higher than they are currently, but much lower than Nvidia. That would be what Michael Semblis is predicting for JPMorgan. Find me that competitor. I think if we had Lisa Sue on here right now, as great as she is, and you know, I think that AMD is fabulous, I think she would admit, listen, we're not where we have to be in Nvidia, it is, particularly with training. Now Michael said they have to lean on inference because they've done a lot of training. Training doesn't make you any money, infrastructure, money. But that's not the case of Nvidia and the customers. They spend more money in time on training because they want to win in terms of data than Mark Benny of data analysis. So I think that, I know, I take my life my own hands when I disagree with Michael, but I felt that his piece was incredibly powerful and really got me scared. You mentioned AMD. You saw it in the green today. There is a story on the wire that they are hiring AMD, a former VP of AI initiatives for Nvidia. That was cool. Look, let's understand, these companies are competitors. I mean, maybe more competitive than people realize AMD doesn't have a horse's jet, AMD had the Biola's engineers and that deal they made with a private company, two weeks ago. But I think that AMD is doing great, or else we wouldn't own it for the Chapel Trust, but is it great enough? Yes, when it comes to personal computing and servers, people have to realize those are good businesses, and Intel, I mean, look, I have said enough negative Pat Gelsinger. So why not say more? I think that he is, he gave a fireside chat last week, which was incomprehensible. But it's not just Intel, UBS today cuts ASML, Barclays cuts SMCI as you point out. Well, SMCI has both accounting problems and margin problems. That's a suboptimal situation, clearly, particularly accounting problems. Well, they came out yesterday and said, we don't really have many. One of the things I've learned, if you claim you have accounting problems, you cannot then put out a release of, hey, you know what, we looked into it. Because you know what else wants to look into it? The SCC, you don't determine that you don't have problems. When you flag them, the SCC comes in, and you got to bring lawyers and you got to spend a fortune. It's super micro, really has to get its act together. They really have to get their act together. ASML was a little bit of surprise, because ASML stuff is true to man. By the way, the real carnage yesterday was, it wasn't applied materials, it was in Kalei. You take a look at some of these companies and you just said yourself, well, I'm a search, isn't that a buy? But you know, then you'll get A-Man, and the chart, I mean, one of the, we don't even talk about the fact that he and me and my son put up a piece yesterday, Twitter, I still love a lead, but I've known her for 30 years, and, you know, it is the great head and shoulders. I mean, it's textbook head and shoulders. On what? The SMH? Yeah. There are all merely players at this point, and I really feel like that that's, again, September, head and shoulders patterns, some weakness in some places, we're worried about China, but I think you come back and say, Intel, we still have the halo that Intel's great, but it is, but it's bad for the semiconductor business if they get in big trouble. Well, the story today is about Intel's manufacturing business and this Reuters piece about a broadcom test that did not satisfy. Well, you look, I mean, Intel is just a shadow of its former self, but you have a CEO who's a proselytizer, and all he does is look, we're done phase one of the restructuring, really? How about this Bloomberg piece about Intel inserting options such as foundry split? How about a Bloomberg piece about the idea that perhaps they're going to be in big trouble when it comes to the chips act, and that maybe the government screwed up? I don't know, but I would say that Intel's balance sheet. If you take a look at Intel's balance sheet, people don't understand. I mean, I try to get some numbers for Intel's balance sheet. It's very interesting. I know we're going on too long about it. We talked about it a bit about this yesterday. Okay, so they have free cash flow minus 12 billion, now minus, so when people know that that's not positive, minus 12.5 CapEx, and then they've got a gigantic, just regular burn, so you got 12.5 CapEx, you got 24 million in, now you get a free cash flow, I mean. Oh, here, free cash flow projected to be 12.5 billion, expects 24 billion in capital expenditures, so some of them what you have, they have 53 billion in debt coming in, they have 35 billion in cash on the balance sheet, but they have 37 billion that's going to be out this year. So 37 billion out, 35 in the bank, that's no good. So then the question is, do they meet the conditions to get the actual money from the government, which is the conditions little opaque, but I thought that the Bloomberg piece in title, Intel money was throws Biden team strategy into turmoil. What's distinctly been right? That kind of fits with the other element that Semblis raised yesterday, which is geopolitics, the reliance on Taiwan, semi on the part of Nvidia too, right? It's a little supplier for that. So both AMD and Nvidia are not new, AMD in particular is not really worried about Taiwan as much. Obviously Intel can't compete if they have free cash flow, minus 12.5 and CapEx, minus 24. They're not going to be able to build all the boundaries that I think are going to be making so as competitive Taiwan, semi. But I think that I look, I was very worried and remain worried that China might want to do a takeover time on semi and Taiwan, they can do both by the way, they can do one not the other. But I just, I don't want to take it off the table. It's just another whoa and Semblis, look it was a list of whoa's, I mean, it's like I read it, I said, oh, come on, Michael, Michael, stop it, Michael or or not, like not on my Tom Hagen, Michael, why do you hurt me? Yes. And it's folded into everything else about this time of year, September, the election, buybacks, Jim are running lights. Well, why don't you just Dollar Tree me? You see the Dollar Tree? I was like, oh my God, I mean, not only that, but no one has any money. Yes. Let's just look at it. Here's what you do when you're Dollar Tree. You absolutely, you calculate a younger people, we don't know anything, younger people go in this and well, you know, if there's 18 fewer milk duds in this box, 18. That kind of thing versus say what have, Walmart is the reason. They want it. You want the reason why that's down 10 and white dollar general is fell apart. It's Walmart because Walmart decided to not wipe them out because boy, that's just Jonathan Kenner sends you a subpoena. He's subpoenas people like it's toilet paper. You're saying Walmart hurts them just enough? Just enough? Yes. Yes. But no one is going to come, do you think we looked at our book and the reason why we didn't have to go to it because Walmart came in underneath it, who, no, you just say that the macro. Oh, really? How come there's no macro problem at Walmart? Yeah. Let's answer that. This is the way we used to talk about the weather. Well, it wasn't raining on your side this time. Yeah. Your same store sales aren't as good. I mean, to me, like the only same store sales that were not worthy of, that were worthy on the surprise size wasn't the one strum. J-W-N, yes. I think that rack is worth the price of the stock and that's why they want the company. But the periodically, they want the company and they're like, they're definitely hamlet. Right? I mean, they're like to buy or not to buy that is the question. They want to really brush up on their Shakespeare. Yeah. It's going to be interesting to see just the ticker go away, buy no more J-W-N. Good, because it used to be N-O-F, you know, and I, look, I, I'm, I'm very concerned about everything but retail, except for at the low end, giving example. So with Dick's reports, and before you can even read the statement, the stock's down three. If they read the statement, the quarter was great in them and the outlook's great enough. Let's get out of the, we have to, we've got to get out of the gloomy, gloomy, gloomy, ruining the fatty to quote the great highland. We're going to get to some names in retail and the consumer, but Dick's did raise the guide. We'll talk some more mail. There's a car deal piece on the tape as well. A name. We'll talk oil. A big story today. Got a downgrade of booking holdings. And Vice President Harris with the speech in New Hampshire today, talking about tax deductions for small business. Futures remain weak though, we're back after a short break. With the Wells Fargo Active Cash Credit Card, you can earn unlimited 2% cash rewards on purchases you want and purchases you need. That means you earn on what you want, like trying out that new workout class and 2% cash rewards on what you need, like a foam roller for your sore muscles. That's the beauty of the Active Cash Credit Card. It's ready when you are, with unlimited 2% cash rewards. The Wells Fargo Active Cash Credit Card, that's real life ready. Terms apply, learn more at wealthfargo.com/activecash. My dad works in B2B marketing. He came by my school for career day and said he was a big row-ass man, then he told everyone how much he loved calculating his return on ad spend. My friends still laugh at me to this day. Not everyone gets B2B, but with LinkedIn, you'll be able to reach people who do. With 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. They do claim they're going to accelerate to 23% growth. I would say in the conference call, what really got you down was that everyone was asking about it. They got to the point that someone used them fabled, "I don't want to beat a dead horse." Often the beat of dead horse means you're overdoing it. I saw it, there should be upside, downside, forecasting of beat of dead horse. The beat of dead horse question was way too high on this. I'm not a buyer of the big sale of Zscaler. I think Jay was just being conservative. He mentioned Mackerel. That's another thing you can't do anymore. I can't imagine Mackerel because people would say, "Wait a second, that's your dodge." But look, I think we're listening to Jay this evening. I think he's going to tell a much more bullet story, and Billies have not been a good measure of cybersecurity of late. We learned that from Palo Alto, we learned that from George Kurtz over at CrowdStrike. So I think that the idea that Zscaler is bad has a lot to do with the beat of dead horse. We're going to hear from the CEO this afternoon all over time. Do you think the 20% benchmark in general is still valid? Yeah, you got to do it in order to have your stock go up a lot. But I think that the fact is, is that because they guided for the rest of the year well, I just think there could be like a glitch here, but obviously you can't tolerate a glitch when you have a very high multiple stock. But I do think, let's listen to Jay. I mean, look, let people sell it. You want to get out of Zscaler? See you later. But I'm going to listen to Jay's shorty, just in case the CEO has some significance. I know that Jay is up until yesterday, was considered one of the kings, and now he's a pawn. But I don't know. And remember, king isn't that good. You want to be the queen, the bishop, anything. But right now, he's just like one guy, you know, and he's surrounded and he doesn't know what to do. And it's like he's playing strategic, oh, and they're playing chess. Look forward to that later on this afternoon. Opening bells coming up in a moment. Don't forget. It's any time, anywhere, just listen to and follow the squad on the street opening bell podcast. Whether you're scouring business financial sites or listening to economics podcasts like this one, you'll find there's no secret to successfully managing your company's finances for the future. You just need PNC corporate and institutional banking, whose team of dedicated relationship managers bring 160 years of experience, advice, and an array of tools and tech to scale to any size business. PNC Bank. Only boring since 1865. PNC Bank. National Association. Member FDIC. 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. That's energy and progress. Visit chevron.com/anchor. Maybe some traders got out, but the degree to which the market went down didn't really give too many individual investors or institutional investors any time to think about it and conclude let's get out. Rather than thinking about getting back in, I'm just staying in. I've been bullish on the market and I don't see any reason to jump out of it. I said you're Denny earlier this morning on Squawk Jimmy says the economy is doing just fine, but that things like yesterday's PMI gave the hard landers some room to squawk. Denny comes right back suggested that that's wrong, not to worry now, not to worry. He was, by no means was Ed meant to reassure us. Except for the last thing he said, which is, look, I'm going to stay in because things are good. Members week, I've found, look, I know Ed for years and years and years and he's true north on a lot of these things. But the one thing I would say is that you've got to take into account his last comments more than his first comments. He wants to stay in. If it was really, really bad, believe me, Ed would be, he would have no problem saying, listen, you've got to get out, there'll be a better time and he didn't say that. So let's give him that, which is that we feel there's turmoil, but you might want to buy it at a certain point. I just didn't get a sense that he wants to buy it now and I agree with that, by the way. He did say he expected some chop through the election. Yes. And then a resumption, what he said to record highs. Well, I mean, look at what Goldman had to say about the, either one as president, Trump or Harris. He come away and you say, all right, that's a little unsettling. If we don't have, if we have a sweep, it's totally unsettling. But if we don't have a sweep, it's not. I think it's some of the gist of the Goldman note. I think that September's awful, we know October can be awful. But at the same time, I don't want to bet against the Warhol, the federal reserve putt. I don't because that stimuli's gross and it's gross money into the market to watch out. I mean, look at the two years that I can create, I mean, people have to recognize that there are other forces besides the son of Nvidia and that's S-U-N. Let's get the opening bell here at the big board. It's chemical company Eastman at the Nasdaq. It's BioTech, BioMarin doing the honors. There you go. JJB, you always does a good job now. Here's the shocker. We have all this negativity. What stock is doing when Gitlabs? What does Gitlabs do? They do. It's really kind of funny. But they are actual DevSecOps, development service and operations company, development security and operations. Now development security operations is without a doubt the highest risk part of enterprise software. And they're doing it for AI and they think they have the best AI suite. Now, if they reported a great quarter and the stock is up and it's for all the things that people are worried about which is AI, data center, well what's wrong with this picture? And the answer is that, look, DevSecOps, very powerful, enterprise software, very capable. Outlaw service now. They're companies that are anti-symbolists. They're actually making money right now with AI and I just think that the idea that Gitlabs could be odd. Something's wrong. Either everything is bad in AI and data center or we have a Gitlabs and then we have perhaps maybe the smartest acquirer of the PE companies, Blackstone, this morning, buying a data center company, AirChrunk, in Australia that helps Australia, Japan, Malaysia, Hong Kong, a seven billion dollar development, also joint venture with Digital Really. They believe in the 55 billion of data center investments prior to this. They expect one trillion of investment in U.S. over the next five years. I thought the data center was dead. That was yesterday. Yeah. You said we would be safe in the data center, well, I was wrong. I mean, come on. It's not a job book here. It's not a job book. Yeah. There are some other, for example, wells, ads, both Microsoft and Adobe to their signature picture. How dare they? Signature picks. There were two positive pieces about Adobe. Adobe is heart and soul AI now because of Firefly. Adobe's an amazing company. People haven't liked Adobe that much ever since they weren't able to buy a small business state. Well, just part of it would let them. But I thought the Adobe with two positives today was a sign that, again, if you write off software, both enterprise and they also do individual, that's a mistake. Service now can be bought. Adobe obviously can be bought. It's hardware without a recognition that Nvidia has a growing software business. Again, I keep coming back to Nvidia because when I walk out the street, I mean, people just remember that everyone who's negative one, including someone who's on this morning, it's not like Nivea. Like Nivea cream, what you get at the old wall where you go, Nivea, get that at Walgreens. Okay, you don't get Nvidia Walgreens, you get Nivea Walgreens. But no, we got people coming to listen. I'm really worried about it. It's a conversation. I'm really worried about it. Exactly, I'm very worried about Nvidia. Well, it looks like it could go the way of Nivea, no, Nivea, Nivea, no, come on, let's get a pronounceer. That people should know, we have pronounceers all the time when I was like, look, I always ask for that. Oh, I don't know how to pronounce that. Well, people should learn to pronounce Nvidia before they savage Nvidia on TV. Jim, we should point out that some things are working. The girls are playing, the Dow is the best down name. I know you saw the upgrade of both Freeport and Alcoa today. I know, but there's a time Jennifer and Cole does some great work for us, showed you the copper, fresh loads there. Yep. And remember, Goldman went back away from the Supercycle, yes, the Supercycle. That's a curse, fracking sand, coal, copper. These are curses. Never say Supercycle. Remember Daniel Wives. Is Dan Hives around? Dan, stop it with the Supercycle. I figured he's over there somewhere. The Wolf upgrades Alcoa. And then the FCX upgrade comes out of a UBS, but it's an initiation. You need China to come back for aluminum and there's light waiting of cars, but I don't think the auto group is that good today. By the way, another, another Nipon steel, remember they make U.S. steel makes a lot of auto stuff. Another Nipon steel appeal, I mean, guys, wake up and smell the Java, they ain't working. While you saw the comments by the U.S. steel CEO to the journal, we will move our headquarters out of Pittsburgh. And we'll close mills if this deal collapses. Yeah, okay. You think it smells a desperation? Like the Pittsburgh Steelers of late last year, look, I got to tell you, I think that people have to recognize that there are certain people who can be important. Now we have to struggle, like next week on the debate, which is going to be like, who knows? There's some who can say, "Look, can we just all get along by agreeing that Nipon steel can not buy U.S. steel?" And boom, that would be like suddenly some, because that's the one thing that they agree on, both Trump and Harris. So I don't know what presidential candidate they're thinking of just going to go behind them. It's very hard to go against, President, President does play a role. You can argue, "Well, wait a second, they could go to court." But I just think that they ought to just realize that there isn't anyone in either party that's in favor of this. And by the way, Vance, if you read the book, he'll be like, "Lg, you'll know that at the heart of it is the idea that a Japanese steel company came in and wrecked his town." I mean, come on. There's a book about him, mama, papa, whatever, you know? Jim mentions autos. Good book. I like the book. One thing getting some play today is German auto sales, Jim, last month, down 28, EV sales down 60 percent. That's why, I mean, look at Eastern Germany. I mean, I think that they're voting that the conservative member, the conservatives and the rebels won. It wasn't just the right wing. And I think they're all worried about precisely this. I think that this is why you can't own this industry because of what they're saying. And I think that other than Ferrari, I mean, now, what I learned in New term today- Jonas. Yeah. Honey juice. Honey juice, apparently, is a drink at the US Open that they can raise prices with impunity and same thing with Ferrari. So I like that. Jonas just, you know, in a dark moment, Jonas comes in, he's a bright light. It's true. Volkswagen, by the way, is appealing to unions saying we got to change our ways or we won't survive this transition. Volvo today, Jim, abandoning plans to go fully electric by 2030. It's all happening in the way of Chevron. But don't tell that to the oil companies and buyers there. I mean, think about it. What's happened is that the oil companies are winning a battle because the first sign that it wasn't working was when Hertz put all those tests and people are crashing the test. Sure came on the set. And he was saying, look, the big problem with the test is people put a reverse in and backs into walls. Well, that doesn't, when you put it in reverse, it does have a habit of going backwards. I don't know why that was such a shock to the people who ran in test. But I do think that you've got a situation where everyone's backing away from you, you don't have to get forward, but they won't commit any huge amount of money at EV. So it's like, it is a giant, sucking chest wound and I just think that we don't have an answer about how to turn the clock back to when we were going on electric, other than many more charging stations, because that's what people were worried about. You mentioned Chevron, certainly oil is a story, got below 70 earlier this morning. And then these headlines hit that OPEC+ might rethink any kind of production cut or hot. Yeah, I had that nice company vistas on this, like the Ring of Bell, and they're not thinking that. They're thinking that things are just okay. They don't like it. I mean, maybe they took all of their cash and put it in the Nvidia 120. By the way, Nvidia is just now, and remember, it's approaching the vacuum of 100. I'm all in Nvidia, because that's what anybody wants to talk about. I will pivot out of Nvidia the moment, tell me, listen to Jimmy, she really be focused on Boston Scientific, perhaps the best acting stock in the entire book, other than UNH. Interesting. Whoa. Ooh, that's Boston Scientific, spelled backwards. I mean, you can't talk about Nvidia and tech without talking about, say, for example, the way staples have asserted themselves against tech last few days. Yesterday, I mean, if you go back to Procter, Procter had a big quarter. They did it because John Mueller said, listen, we were surprised by China, it's much worse than we thought. Stock goes from 169 to 160 in two days, and then we had this rotation, and you start thinking that Procter's great, that they had a great quarter. PepsiCo did not have a quality quarter. Look at how that stock has moved up. I mean, we're talking about companies that people have totally forgotten. If Hormel is up today, if Hormel is up today, then it's time to really rethink, because Hormel's quarter was not good by their own admission. Yeah. Hormel down nine, yeah. That's going to take you back to February on this price. That was when I, when, when did I drink the spam juice? Ooh. That may have been the fifth. I would have been two years ago. That was the all-time high. When I drank the pumpkin spice, just to kind of like say to people. Right here on set. It was time for me to realize that there ain't nothing like spam in the event of a nuclear war. That was a landmark day. That was memorable television, is what that was. Thank you. I mean, that's the kind of thing that my wife didn't talk to me for years because of that, and also because of the Baconator comments, which I'm taking off the table. No more Baconator, okay? Just because she still eats them does not mean we have to talk about it. There is this upgrade, a Sweet Green out of TD Coward. I like that. That's the infinite kitchen in Midtown. Yes. The kitchen, these three hoiers have really developed something that is lasting. I think Sweet Green and Coward are for real because they have no take. No, because that's what younger people want. The thesis out of Coward is that thousand stores, the TAM could be much bigger than that. Both Sweet Green and Coward can put up that amount of stores because they represent the chipotle, this next generation chipotle, not that the current chipotle is bad, but it's just like these are the ones that hopes are Sweet Green and Coward as the next chipotle, and that has some traction for people who are just classic growth buyers, classic. Travel is getting some discussion today, Jim. There was... Looking down, great. We got an upgrade, a Boyd, gaming out of Morgan Stanley, but then booking, Jeffries, does this model on hotel nights and says growth is going to slow next few years? Yeah, and then we got an Airbnb down, great. I mean, travel ticket on the channel a little bit. I do think that a lot of these are related to the fact that people are a little bit traveled out, but also because people are starting to run out of money. That's the wrap. I mean, why don't we talk about a Fed rate cut because things are going well? I mean, this is right at the cost of when you have to deal with the fact that Fed has to take action because these things are happening. So you can expect three rate cuts and also fabulous growth going into the rate cuts. You have to believe correctly that we have a soft landing, and these are the kind of things. When bookings gets downgraded with Airbnb, with Marriott comes down, these are all the signs that the Fed needs to take action. You can't have them take action at the same time when Marriott is going straight up and booking is going straight up. That doesn't happen. So understand that we can have everyone compile into Proctor and say we're going to have a hard landing, or we can recognize that, wait a second, when the smoke clears Proctor, which I'm very concerned about because the trust runs, it owns it, people will go back to the reality and say that Proctor was at 160 for a reason. Right now, I don't want to sell the Proctor because it's my lovey blanket. Really? I've got some lovey blankets. I mean, it's 175, Jim. What's that on the year? Well, I don't know, it's a PE of 25. There's a convergence of NVIDIA's PE with Proctor's PE, but I got to tell you, right now Proctor's in charge, stocks up 20% for the year off of two band quarters. You can't beat that. Yeah. One second sector that I think you can come back, I do think housing can come back because that's just so positive from mortgage rates going down, does help with affordability. Portability's not been that great. I wish you guys say autos, but autos are just because of the electric morass. I just don't want to get behind them. I don't. You know what's starting to get some attention to is Helox. There's so much home equity, whatever, $10, $15 trillion of home equity been built over the last couple of decades, that it's been untapped for the most part. Right. Well, I do think that we have a lot of borrowing, people have a lot of borrowing power, a lot of borrowing power, the 401k millionaires. I do fear that Helox can sell right now, the rates are very, very high. So it's very hard to go, ASEQ your place. ASEQ meaning a verb for you put up this stuff that's actually lasts longer than wood, but it is a little more costly. I think that company has 35P, which is a little high, but it is really good ASEQ. All right, we'll see. As far as macro goes, factory orders at the top of the hour and beige book, but really the games don't get started until we'll get jolts today too. Yeah, we do get jolts and also we should stop trading it for a moment. Alphabet is actually up Google. I don't know maybe the issue of release about why it shouldn't be. Look, our stock is up, but it shouldn't be. I mean, that's how you feel like 20 times earnings for alphabet and you back out the cash versus the fact that I still don't know a soul who uses Gemini. I mean, Gemini to me is a constellation and not brain, it's STZ, which actually raised below initially. Interesting. That's going to be right off the 200 day alphabet, which has been a source of defense all year long. I know. I mean, and that's the most challenge I think of the giant hyperscalers because I think that they have the seeds of destruction in their own house because Gemini could hurt regular search, but everyone's kind of denied all about that. It's not that expensive a stock. So I'm looking at that one holding the one that everybody is crowded in and you mentioned it earlier is Microsoft. We have guys recommended Microsoft as if there's nothing wrong as if that chart, which is maybe the worst now in the book now that Nvidia has broken down, is okay. We own it 30 times earnings. I think this is the classic Ed Yardini story. This is an Ed story. When you sell Microsoft at 406 and get back into 375, I dare you to try. That's what you have to do though. It's very hard to do. Be aware by the way, today also city TMT conference where we'll hear from Microsoft, Dell Intel SMCI, MongoDB and Etsy. MongoDB had a great quarter. Etsy really knocked great quarter. Dell had a terrific quarter, but nobody seemed to care. And I think Dell at 13 times earnings is very, very good. Michael Dell did a good job. Jeff Clark on the call was excellent, but people didn't want to hear it. They didn't want to hear it because what does Dell do? They get the chips from Nvidia and it installed them. And people just say, ooh, now remember, it's HPE versus Sun Micro versus Dell. Who do you want to bet on? I want to bet on Michael Dell, who's having the front row of the GCC conference and was pointed out by Jensen Wong to know that, Jensen Wong used to be like a cajillionaire. Now it's like hurting. Yeah. Please. Who said that Michael Dell's the guy that you want to be affiliated with? I wonder right now, do you think, right now at this moment, just Jensen Wong thinks he's going to have to go back to Denny's as a customer or a waiter? Should we look up Denny? I mean, like, oh, geez, he's down this. He's down that like, no, he does have a cell program, but we act as if that right now, Jensen Wong is deeply depressed over what's happening. When I spoke to him when he reported the quarter, he actually suggested to me that I should focus more on the business than on his current psyche. And I found myself, I thought that was compelling. Well, Jensen always says that he likes his staff to be hardened by misery and hardship. Well, when you go down, when you get to Nvidia headquarters, he goes from table to table to table. And apparently it's like the worst thing in the world, because he says, what are you working on? And if he doesn't like it, well, he questions it immediately. But remember, it's also, the work tables are very long logs, and there's a great bar, and it's much more convivial than people think. And by the way, when you go to Nvidia, people ask for selfies with their boss. How many bosses get? I named me a boss who they want to have a selfie with. Right now, do you want to have a selfie with, I don't know, Mike worth it, Chevron? Maybe he's terrific, but no, no, let's face it. This guy is still the best and he's so good that Jonathan Canner in the government wants to stop him. While we're on that, two more names. One is this FTC trial, Kroger Albertsons, it's an important week as we get some expert witnesses on them. Well, Rodney McMullen, he has the most compelling story in the world, which is that look, right now, if you want Amazon Costco and Walmart to be the only grocers, then block this deal. But nobody's going to listen, because the FTC felt so bad about the Safeway Albertsons deal, and they said they would never let these deals happen again, even if you got word in and give the overlap, because they gave all the overlapped names to Hagen, and then Hagen went back right before, within a year of when they did this. Hagen being a super buttery chain that should never have gotten the approval. Here you've got a much more viable company that wants to buy the overlap, but the FTC just feels like, "Oh man, we screwed up so badly, we're not going back to that." There, that's the real analysis I think. The last thing I'll mention is Apple below the 50-day. Goldman today does argue, Jim, that the next week's event, blow time, should be immaterial to the stock price. Well, I think there are a lot of people who are trying to figure out why they still own it. And the reason you own this, because unlike the semblance spend for all the data centers, they get the chat GPT for nothing. Why are they going down just like they were spending on the data center? And take a look at T-Mobile. Take a look at T-Mobile. Put up the chart of T-M-U-S, okay? This is a sign of companies that are going to give away Apple's cell phone and get share. You tell me the T-Mobile's going up and Apple's going down, T-Mobile's going to be where you can get the Apple phone. Because Mike Seibert sent right there, right there, wayward Dan Ives says, and said, "Listen, we are absolutely going to be competitive versus Verizon and ATC." And he, by the way, the Dan Ives commemorative chair. Who dresses were? Seiber or Ives. By the way, he must be so excited, Marvin Harrison. I didn't get him in the draft for junior, but, you know, Penn State lives. Go, go ski daddies. As we go to break, let's check bonds. As you mentioned the two-year briefly, lowest level since the middle of last year, we won't get factory orders in a few minutes and beige book at two o'clock, and don't forget jolts at the top of the hour. Stay with us. Time for Jim and stop trading. Okay. I mean, there's a couple of things that have been very negative that we've heard this morning. Well, how about a real positive? How about NASDAQ, which is upgraded from cell to buy at a bank of America? Now, you can argue, wait a second, what the heck are they doing with a cell, given the fact that that stock has been wide up, but all the way up. We've got an IPO flywheel occurring, and you definitely have high modes. Now, do I want to buy that stock at the, what's up, did you think I know? But I do point out that there are things that we remember are working, and that it's not a market-wide sell-off, and it wasn't yesterday either. There's just a lot of people fleeing, you could say, economically sensitive, which is true, but fleeing what people feel is just too crowded. How many times have we written off the hyperscalers? You're supposed to write them off again. Someone came out today and said Amazon's Prime has lost its alert. Now, I do a huge amount of works on Prime. They have a Comonster. It was a Comonster Prime Day. These are from people, by the way, who will tell me it's less than Monster, because I actually have decent sources, and the idea that it was less, that's just part of the zeitgeist. Like, let's find something negative to say about everything. And I think we ought to limit it to companies that aren't doing well. Yeah. That double upgrade in NASDAQ. They do talk about a technological moat for a while there. It made sense. It made sense. And you have Adobe with the two pieces coming out saying positive things. Against that, I obviously have to listen to the Comonster called Dix, because Dix looks like a disaster, and I don't know about that. I mean, anything can be a disaster if you want it to be a disaster. How about tonight? OK. I've got two companies that are certainly not disastrous. They have a very narrow environment, AVAV, which are drones, and I remember when the war began in Gaza, I had talked about heat about what, I'm sorry, more focused on Ukraine. I said, these are all going to be drone wars. And he said, absolutely. He's got the drones. Now, his drones are not inexpensive like Iran's, but maybe, you know, you have to lower the price a little bit. And then Sprouts Farmers Market is one of the best stocks out there. That's the whole, old Whole Foods, but with a brain, I don't mean that, with a growth methodology that makes a lot of sense. The old Whole Foods was kind of like, wow, really good tasting. I want, you know, it was good, tune up with good taste. I want good tasting. That's a good one. Jim, a lot to cover tonight. We'll see you in six. Today, we covered a lot. Yeah. Mad money, six p.m. Eastern time. We will continue to watch NVIDIA as the sell-off eases a bit, dows up 100 Vicks below 21. 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. And may have been previously disseminated by them on television, radio, internet, or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. 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One day after stocks kicked off September in sell-off mode, Carl Quintanilla and Jim Cramer explored how investors should navigate this market now. The anchors drilled down on what's ahead for Nvidia. The chipmaker lost $279 billion in market cap on Tuesday -- and reportedly received a subpoena from the Justice Department in relation to an AI antitrust probe. Also in focus: "Red" chips, Dollar Tree tumbles on a Q2 miss and cites "immense pressures" on consumers, why strategist Ed Yardeni remains bullish on the market, earnings bright spots.
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