Squawk on the Street

Squawk on the Street 9/3/24

The opening hour of CNBC’s "Squawk on the Street" with Carl Quintanilla, Jim Cramer and David Faber is broadcast each weekday from the floor of the New York Stock Exchange, on site at the opening bell with the up-to-the-minute news investors need to know and interviews with the most influential CEOs and greatest market minds. Squawk on the Street Disclaimer

Duration:: 45m
Broadcast on:: 03 Sep 2024
Audio Format:: mp3

Squawk on the Street Disclaimer

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Don't miss a minute of the action. Good Tuesday morning. Welcome to Squawk on the Street. I'm Karl Cantonier with Jim Kramer at Post 9 of the New York Stock Exchange. David Faber has the morning off. Stocks do look to reverse summer Fridays last minute surge and now braces for a busy week with Jobs Friday. Eyes on the historically treacherous month of September. A roadmap begins with this first trading day of the month. The S&P rides a three week wind streak going into the new month, Dow touching its 26th record close of the year. Elliott now holds 10% of southwest common, allowing the company to call a special meeting at the carrier. And then there's Intel looking to trim down what Pat Gelsinger has in store for the chipmaker. Let's begin though with stocks kicking off September in the red. That Friday session, Jim, was something else in the last hour. Well, look, when you have that happen ahead of September, you think that somebody knows something. So when you come in and they obviously don't know anything, you just say, like, who did that and why would they be underwater? Friday before Labor Day? I mean, I guess you can move it somewhere. Maybe someone has the S&P in a draft and decided to move up. Honestly, I thought that was just meaningless. And sure enough, they come back with a vengeance. They don't just give it up. They weren't so negative last night. So sometimes you feel like something happened overnight and then you realize no, that Friday move was wrong. We're going to hear all of the annual warnings about the seasonality in this month, except for when you're up 15 into August end. Look, I don't want to go bet against the Fed. You bet he gets the Fed cutting. That historically has been terrific. Yes, we do have a challenged political environment. But I don't think that that necessarily translates into doing anything. People want it to do something. They want to say, well, listen, if Trump does well in a debate, then you should buy X. It's just not that simple. Because I don't think that unless you do the House of Senate, you got to have everybody in order for it to really make a change. And I don't see that happening. So I think that you buy the dips. I know that that's clichéd. I don't care. It works. There are a couple of positive pieces in the journal today. One is about Americans in the 401 case. That was a fabulous piece. Fabulous. Because it said to me, are these people going to cash out? That wasn't the thrust. But to me, that's the thing. It was like, OK, we're up by millions and all the millionaires that have been created. Or are they just going to-- The number of accounts of fidelity were a million. Wasn't that a fantastic number? So then I said, well, those are people that should take something off the table. I don't think those people should let everything ride. There's also a journal piece looking at percentage of Americans who think the country is headed in the right direction. That number has been low for years, but it's almost to 30, which would be the highest since late '21. I thought again that that was a piece which just said, you have to buy when it comes in. Now, is this enough? I mean, give me an example. Someone downgraded JP Morgan today. We all know how it is. Georgia. Yeah. And Deutsche had this list where they're telling you to buy certain banks. Bank of Morgan, because Buffett knocked it down. And I said to myself, there's the opportunity by JPN. Their business is real good. I want to own that stock. So I feel like if anyone downgrades the stock other than if it's Intel, because I just can't go there on any sort of restructuring, I'm a buyer. Interesting. Yeah, I am. The bit about the Deutsche moves, they don't change numbers on any of these names. Nothing. So it's all emotion. It's all chimerical. Because what happens is that, you know, let's say Buffett knocked it down. And as soon as you want to buy it, I hear, wait a second. Buffett was the seller. You can't buy it. No. No, that doesn't work. Well, it's far go down. My travel trust on Swell's Fargo. I didn't understand why I went down. I know it wasn't the greatest quarter, but I think it was overly punished. I'm looking at a couple companies that reported this week. Marville. I thought Marville reported a really excellent quarter and it's very much AI. But there's this AI cursing it. And it's all about, oh my, there's just the amount of trading in Nvidia this morning. I mean, it's not GameStop, for heaven's sake. It's a real company. But I think a lot of people feel like next year's going to be peak in spending for AI. There are some stories on the tape today. Looking at, for example, one argues that a third of all Gen AI projects will eventually be shuttered. Well, I think that you could argue that it could be two-thirds and that we're back to where you have Yahoo and you have AOL, which then of course ultimately wasn't AOL. And you have Google. Look, I'm very concerned that a lot of companies haven't figured out what to do with it, but have it. And you see it every day. You hear a company that says they have it at Gen AI and then you say, well, no, it's not really. Well, so far, all it really is is call center. We were playing with it last night to see exactly the extent of how it's changed. And it's very, we clocked different GBTs, meta the slowest perplexed the fastest with footnotes. Gemini just left out of the conversation. And I think everybody who is buying these stocks needs to do that. You've got to find out whether you think that they have enough juice because if we had a lot of hallucinations from chat GBT. So it's like, wow, I really have to be comfortable with anything that involves GBT before I buy some of these stocks. You kind of remind me of what Mike Wilson wrote over the weekend. And that is, if the AI trade is a lot cloudier now, what other sectors can absorb that much market cap? He doesn't think there are that man. Well, I still think health care could be big. I do think that there's going to be that small cap stock trade is going to come back too. Because people feel if the Fed cuts, you buy small cap. But you've never been a fan of them. No, because when you actually break up the index, you don't have a lot to like. But there's just so many people put together baskets. And so many hedge funds that say, oh, I want that. You can't really get out of it. I like health care because like there's peace today, it was really suspicious. Because I mean, when I mean suspect, I don't mean there's anything wrong with it. Is this the Novartis stuff? The Novartis Jeffries downgrade. After 20% gain. No, after 20% gain, I'm interested. I'm not negative. I'm interested. Because money goes to the winter starting September. Not to the losers. You do not buy losers. There is the Novo commentary. The Novartis. That ozempic supply is going to remain challenged. Look, I think that China's using it. We don't know anything China has been a curse. I don't think it's a curse this time when it comes to those. But we're still, it's still realizing that those stocks have had a very, very big run. I am waiting for someone to buy Viking therapeutics. Because it's too expensive for them to get into, into the run now. Because the plants are foundries. Just think of them like foundries. Think about Intel's problem with foundries. I mean, these are very expensive to build. So it's really a company like Viking needs to be bought. A company like Pfizer feels they, I think, doesn't need to be bought because they've got, they've got, they've got, you know, they've got the Seattle Genetics Sea Gen and I'm not seeing the results yet. A lot of times when Pfizer buys something, you don't see the results immediately and you want to know why. Right. We're going to talk more about the individual names in a minute. On the macro, though, Jim, we are going to get a jobs number on Friday. Collecting estimates B of A 200. MS 185. City 125. I know. See, our Danny, you know, I love it. He's more on the little hotter. And when I read it, I felt like, I don't want the news. I think that what people are saying now is how many this year and you get a strong number and they feel like you get 220. Maybe we get one. If we get the low end, maybe we get two, maybe we get three and people are going to play that game. So we have to recognize that you're not going to get away from the Fed being a major player in the fourth quarter because people are set up to guess how many cuts we have. And I find that I hate that game because think about how much, think about the game we had in the S&P during this whole period where we second guessed. It's been a way to buy stocks to second guess, not sell them. Right. What is your take on the at least recent price action in, say, ten year, two year yields? I think they're much stronger than I expected. I also kept thinking, well, the government was going to flip. Remember, the government's supposed to flood the whole market with supply. And the supply's been lapped up. By the way, can the Japan carry trade come back and cause some volatility? Yes, because the same clowns put it on the first time, apparently, are back against that. I think MAG7 is still interesting. I do. I think MAG7 is still interesting. I think Amazon is very interesting. We got a lot of pieces about Amazon and advertising, Amazon and supply chain, all good. I don't want to alphabet be on a small position for a bunch of Apple Trust. I am very interested in meta on anyone worried about meta AI because he has to spend. He's behind. I think that Mark Zuckerberg is behind. And he still needs a lot of video chips. The new rap, of course, is once you get all the video chips, you're done. And yet, when you listen to Jensen Wong, he's the CEO, you're never done. And you can say, well, he's talking his own book. Well, no, he's looking at his own book. Look, there are times when Jensen Wong has said, look, I don't have it. Remember, this man is not, I mean, we all tend to think that he just started. It's been 31 years since he started. And the only time that he has ever shown any hubris, I think was when he, I remember talking about it, he moved up from dishwasher to waiter at Denny's. At Denny's. And that was when he was like puffing his chest. Yeah. Not since that. So you think the CapEx cycle has legs? I do. I'm not betting against you. It's powerful people who think it's over, but. Right. Well, some have suggested that the outcome of the election being uncertain is putting the brakes on some of it. Yeah. I don't think they can break on it. I mean, I think that there are going to be so few, the new generation, Blackwell. But you want the Blackwell. They can ship in volume. I think that you got to get some. I think that you want video. I mean, when you fool around with these sites, videos week, and when you ask them to do paintings, paintings week, they have to get those to video being rapid. We're just not there yet. And I think there's a lot of people in their 40s, 50s, 60s who don't understand how the younger people are completely grading these sites, changing back and forth. No oil. I mean, when you talk to young people, it's like, what are you, you know, I'm using perplexity. What are you? I mean, I'm really deep into meta AI. And what you find is that people just switch back and forth. And the reason why I'm worried about Google is I don't hear anyone. I'm using Google. Interesting. Well, Morgan Stanley today does cut to 190. I know it was. They look at four. They reiterate overweight, but they look at four different remedy scenarios out of DOJ gym where the EBIT impact could be up to, I think, the 20% or more, right? Wow. That's trouble. Yeah. Yeah. They're not calling for a breakup, by the way. No. They don't see that. No. But down to 190 is going to be a trim. Look, I think that the, all the stories about losing, but the monopolist, you know, look, I know their viewed as monopolist. I do think that that could go on forever. I was surprised that these pieces always presume that there's something that happens within a year or two. It's not like that. And by the way, Apple's not worried. You think they're worried, but they're like, say, listen, it's got a long tail. The main thing I think about the Justice Department is that that's where you worry about what's going to happen in the government. Because both candidates don't seem to be real fans of big cap tech. But believe it or not, I think that the bigger friend is Vice President Harris. Oh, it's just certainly, there's been a bit of a mind meld on U.S. Steel Nippon. Oh, okay. So I go back to Lorenzo this morning, Lorenzo Gonzalez, and he's going back and forth with me saying he predicted all this. Now, of course, David Faber's been a skeptic. But one of the things that is absolutely, definitely true that people don't understand is that Cleveland Cliffs will make changes to suit the Justice Department. Now, a lot of people will come out and say, no, there's such an overlap in auto. And they've been on certain steel. Well, how about if he just says, look, I'm not going to buy that part. I'm going to buy what the Justice Department wants. And this is a deal that the union likes will be Cleveland Cliffs' USA. I have said and will reiterate that I think that Cleveland Cliffs gets us. Really? Yeah, I do. I think Cleveland Cliffs just gets acts, and not ex, not ex-Brazil, I am sold to you. But I do think that Lorenzo Gonzalez is being underestimated. I think he's brilliant. I think that he understands the scenario, and he will say to Justice, go ahead. I don't want to buy this, or I'm willing to buy this contingent. And he gets it. I don't know. People should not underestimate that man. Oh, that's going to be interesting. I do think that we're going to have to stay on that because when Biden is against it, Harris is getting, I'm looking for someone in favor of Nippon steel. I've not found that person, maybe someone in Japan. Yes. Well, the debate's a week from today, maybe it'll come up then. When we come back, Evercore, getting bullish on Southwest as Elegant management stake now goes to 10%, what investors need to know, plus next hour. Do not miss four-time NBA champ, Steph Curry is going to be with us live on set here at the NYSE. Take a look at the pre-market. We'll get to some calls on Boeing and get set for Apple next week. Some news on autos with futures in the red. Stay with us. 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Terms and conditions apply. LinkedIn, the place to be. To be. Imagine earning a degree that prepares you with real skills for the real world. Capella University's programs teach skills relevant to your career, so you can apply what you learn right away. Learn how Capella can make a difference in your life at Capella dot edu. Here's a Southwest higher in the pre-market. As Evercore upgrades to buy, they add to the tactical outperform list, plus some reports this morning that activist investor Elliot management now owns 10% of common, crossing the threshold that allows the hedge fund to call a special meeting at the carrier, the two sides Jim reportedly going to meet on Monday. Yeah, good luck there. I do believe that the way my goal is that without major changes, meaning that there has to be a change in the CEO, I don't think they, I think they like the whole board to change. I don't see any eye to eye here. Now there is a kind of exciting roadmap. You have a September 26 investor day. You've got these changes going on, which is described as capacity discipline, and those are all really good. So it may be win-win. I'm not particularly in love with the autos here. I don't think. Are the airlines? I mean the airlines. My worry about the airlines capacity is that there's overall too much capacity. But I do think that most definitely there's a kind of interesting opportunity here to buy it. Huh, interesting. At the same time we have this downgraded Boeing over at Wells where they go to underweight. They trimmed a 119, Jim. They were at 185. Boy, that was a devastating piece talking about cash flow. And I've been waiting for that piece. Everyone's been kind of just saying, don't worry, don't worry, don't worry, there's only two carriers. You're absolutely fine. Do you claim makers, no, they need money. And I don't understand why people are so bullish about Boeing, meaning that they think they can ride this food without an equity offering. And I think they have to do it. So the argument out of Wells is that free cash flow will peak in 27. Yeah. We're going into a new aircraft cycle. They'll need 30, 40 billion for that. So they do see an equity raise. I thought that was a very good piece. People should respect the negatives. It's one of the weakest stocks out there. And I just don't think it. I think that they almost need an equity offering in order to be able to shore it up. Now I know this is a new CEO. New CEO can do what he wants. New CEO is an opportunity to be able to say, okay, look, I have been hurt in a mess. And I'm going to fix the mess. And the way I'm going to fix the mess is to get this balance sheet better. Kelly Ortberg knows what to do. And I think he knows that, look, we can't sustain these losses without more capital. So you think the carrier Southwest is potentially interesting, but you would not be getting near Boeing. I just think Boeing is just so problematic. It is you got to unwind Boeing is really feel about what it is. I'm glad that Ortberg says he's going to spend a lot of time out on the factory floor. But I think that this is a crisis of management and a crisis of building planes. Well, I'll tell you one thing, Jim, one thing that at least is working not against them is that crude is negative on the year. That is such a good thing. And by the way, you posted the gasoline numbers in three dollars this morning. That should spur a lot of different people from thinking, you know what, maybe travel has another leg. People have been saying that it's over the dollar general commentary. No, the dollar general commentant, whoa, I mean, that was that was one of the more devastating quarters. And I kept going through the conference call, looking for anything positive. And I just heard basically, listen, we're two countries and the country that we have isn't spending. Now, I want to think about what's happening at Walmart. I think they're doing quite well. I saw a piece this weekend about Costco and people are going to Costco too much. They're consuming too much. We just stop. I mean, there is just a kind of sense that there's really only Costco and there's Walmart. And I felt that way after reading Dollar Jan, Dollar Tree will come up, maybe Dollar Tree will go better. But those places are squeezed. You see, Goldman removes Dollar General from conviction by today. Thank you for that. Yeah. Thank you. Now, some of those are just to refresh so I don't want to dump on Goldman. But I do feel that maybe this thing's overly punished, but they did it to themselves. Okay. But Barclays 154 to 102. I mean, this was a company that basically said, listen, what we're doing is not working because the consumer is so weak. Maybe it's not that. Maybe it's because their lineup is so weak or maybe it's because Walmart has taken prices down twice. And when you go to Walmart, they have a lot of $5 things that you would expect to see $10. Otherwise, I look, I have to tell you, people don't realize, I think you got to really shop around and realize how bad these are. So I had the, well, I had the egg move up yesterday and it's like, now look, of course, I remember when it was 317, when we started, so my memory is jaded. But I paid seven bucks for it. I paid seven bucks. And I said, what is that? Seven bucks. I mean, like, no, you know, you get it. I'm not paying that. What are you going to negotiate the price? Okay. I'll pay you $6 and not a penny more. Well, no, it's not, it's not a free market. No, I don't think so. Here's the price. And I'm like, can I get a carrier? Well, they'd like hidden the carriers. Come on, give me the carrier. It's really interesting. Then it's just, it's a punishing thing to go to me, Thomas, punishing. We will get Kramer's mad dash in the opening bell after a short break, take another look at the pre-market on this return from a long weekend. 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. Kramer 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. My dad works in B2B marketing. He came by my school for career day and said he was a big row as man, then he told everyone how much he loved calculating his return on ad spend. My friends still laughing me to this day. Not everyone gets B2B, but with LinkedIn, you'll be able to reach people who do. Get $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. Then the place to be, to be. That's what they're saying, which is that they do raise the low end, but taking a $1.5 billion to $2.5 billion in pyramid charge on wine and spirits. This is what's really interesting. Wine and spirits are declining even faster than people think. Beer is still good, but there's a sense that wine and spirits may be down 16 to 18%. We thought 9 to 11. Now, all the companies always deny that there's any GOP-1, although there's now considerable number of people who want it. Some people say 12 million. Everyone denies that there's anything to do with cannabis. Some people say that the younger people who have a taste toward beer and less for wine and spirits, but it's really troubling if you're in that industry. I know Brown Forum reported that I just don't want to be in that industry that has whiskey or vodka or gin. Many in vodka are very weak and no one seems to want to own that. It's like the way of that earning bowing. I mean, there's a denial going on, but SCC has come down like travel trust, let it come in and then realize that the beer business is very, very good. Let's catch up on that in a second. Let's get the opening bell here at the big board. Oily Dats Company, this stuff celebrating its fifth listing anniversary at the NASDAQ of Danish biotech Gen Lab specializing in antibody therapeutics. I can't get over that impairment, Jim, in legacy TV and now spirits. No. I mean, there's a change. Now, again, I think that, like with what I mentioned, that meta-slower and perplexes are, younger people are not other than a teen survey from Piper, and these are not teen obviously, there's drinking. Younger people are not surveyed enough, and I think that the next generation, when you look at, "Look, when you look at Casamigos and it's down huge, for Diagio, that is the premium brand for Tequila, which has always been immune from a downturn." Well, I'm just thinking it's been a half hour of the show already. You've talked about young people being very nimble in AI and Gen AI use. And now this. No loyalty. Right. No loyalty. Right. I think the younger people are, let's just say that some of it is healthy. If it's healthy, they're not going to backtrack when they get to 26 and start drinking. There's denial all over the place in the liquor business. They just keep thinking it's some sort of cyclical thing, but no. And, oh, by the way, no one seems to want to talk about the fact that prices were jacked up huge during COVID and have to come back down. I mean, like they're somehow immune to what happened with everybody else. They got to cut the price. But why in spirit that good will charge? Oh, my. I mean, they own high West, which is pretty good. Right. You know, second year vodka, but they have a fabulous secure. Oh, watch that, Jim. I know you've been all over it for a while. As for the open here, very defensive crowds, staples are the only sector agreeing at the moment. You know, this is, I forget who you said that didn't have, was it Mike Wilson? There's not enough of other areas that money can go. There's always room for money to go to the staples. I don't know why, for instance, there's a staple that no one's talked to. They're never on. They just kind of, if you want to see the best chart in the book, the best chart in the book right now is no Wallace's chart. I have to go look at his name. That is Colgate's chart. Now, Colgate is an amalgam of things that shouldn't be selling that well. But what a chart does things nonstop, by the way, almost no yield protection. Look at that. That's the one you want to be and every dip has been right. And I just think, you know, it's dishwashing liquid, what I always think of finished when it comes to that would wreck it, Ben Keeser, toothpaste, I mean, you're going up against crest, shampoo. I mean, that's, oh, you're going to be proctor, you're able deodorant. They do own the deodorant market. But you know, that's a narrow, well, I don't know, I, younger people, where are they on deodorant? I know. I don't know where they are these days. Are there changes of foot generationally in the yard? They sometimes are a little more free thinking about what deodorant implies. Well, I was going to say that's a, that's a classic recession chart, but then you look at like a Hershey, which would be another, it looks nothing like that. They got squeezed on cocoa, uh, Colgate's this kind of perfect world because they've got the high end pet food, which is nutrition, uh, and they've got these kinds of things that people just spend for, I mean, dishwasher, you do not think to yourself, well, I got to cut that out. I don't know, I washed the dishes last night. It was mine. It's your turn. No, I just, I, I despise it. I'm just one of the records to spy. You know, be one of the, look, I make the bed and I wash the dishes and I hate them. Now I got, I got upgraded about how to put the dishes in the dishwasher the other day. Don't just like slam the plate down. So I sit back with it. I like washing myself, you know, the dishwasher liquid. It's okay. Better than getting yelled at. Jim, a couple comments today about Apple next week, uh, one of them comes out of Bernstein who is looking for 13% iPhone revenue. I thought that again, he's been on board Tony, and that piece was very thoughtful. I do think that it's going to surprise. We all have to see what exactly the 16 has. We don't know. We have to worry about Glowfest, but I, I do think that, uh, a lot of people want it. A lot of people want to trial it. And a lot of that is because the phone company is going to be offering a lot of deals. Meanwhile, Huawei is going to do some counter program. Oh, please. Classic guy. That's just great. Time and time. I'm taking a while. Huawei fell a little late rounds for me. That's like your draft Huawei like sit, like maybe 12th or 10th Huawei. That's a tried and true tactic from Samsung. Yeah, you can go after quarterbacks. Huawei's right up there with kickers and defense. You just kind of just wait till the last round and you grab that. One thing we didn't get to in the age is Intel and what a, what the pitch to the board sounds like, uh, uh, there's a piece out of Reuters today arguing that their Dow status may be in jeopardy soon. They're nowhere. That gals is nowhere. I mean, Intel is so challenged. I know so many people want to buy it. Oh, they sell a terra to Marbell. Well, wait a second. Have they SMAP Murphy, the CEO of Marbell, who had a great quarter and does he really need a terra? And has a terra been, uh, trashed beyond recognition? I mean, this is in Xylece, which, which AMD bought. It's a company that is, I think, been running the ground like mobile. I, which by the way, is back to where they bought it. I continue to believe that you're going to end up with a balance sheet problem. The debt issue mongus and someone better wake up these, uh, the PE partners here, uh, Brookfield Apollo. I don't know if they would know how to do boundaries because they're going to learn it. So you do not think that enough bad news is priced? No. I mean, because I think when you have a balance sheet problem and you have a, a CEO whose Peter naturally up, uh, upbeat at a time of crisis, it's very worrisome. I mean, he's a relaxed guy, relaxed. Now that worked for Rogers. He's back. I don't know. I don't want to relax. Yeah. I don't want even be shown. I think people have to look at the balance sheet and figure out what's going to happen. And that includes the commerce secretary, Gina Mundo. Everyone should be looked at balance sheet because you do not have a turnaround until balance sheets fixed. Alaboe. Fix the darn balance sheet. These are Walgreens. Fix the balance sheet. Arguing, they don't deserve any chips act subsidies or assistance. I think that that's really interesting question. I think that they were very open to do it. Now, Ohio was canceled. Do they deserve it? No, they don't deserve it. You think it's throwing good money after that? I really do. I mean, look, it's very difficult to be in the factory business. That's why it's all in Taiwan because we can't afford it. And I do think that when you look at what Intel's trying to do, I think it's too much. I just think it's too much. And they're not really in AI, AMD is just, I think, killing them in PCs. So the share gainers you think are well known? Yeah. Yeah. Now, I know the long knives are out from video. I've been saying that for a long time now, but the galney, what Intel has, is not... They have... Carl, they got a two, four, five, six, seven. They can't even pull a three. I don't know what they're going to do. And I don't... I mean, I've viewed those sports analysis and cardinalities. I'm trying to get people to focus that this company has real problems. And you've got to find some way to get the money so that they can pay the money, that they owe. And I have always felt that Pat Gelsinger has not recognized the crisis that Intel is in, or the despair that people have. I actually think it's very negative for the industry for Intel to be in. Oh, yeah. I would imagine so. It's just negative. And it's not worth it to tell... I mean, I feel badly about this, because he's a... yes, he's a nice guy. But you don't want to talk to Pat and just listen to the upbeat rap. You want to hear someone say, "You know what, we're going to fix the balance sheet." And that would be encouraging if Tim Wentworth did that for Walgreens, the encouraging of Kelly Orberg did that for both, because the balance sheet is not fixed first. Okay. You want to know who's turning things around? Mary Dilling. Okay. Foot Locker. And I misjudged how quickly she's doing. I know that people didn't like the last quarter. But if you ask her, "What has to be fixed first?" It ain't turned around. She will say, "We have to fix the balance sheet. We have to sell the inventory. We've got to get things more liquid." And it's confusing to my ears, because this is a CEO who is a seasoned turnaround artist, and she knows the balance sheet has to be fixed before anything else happens. Do you think... All right. You mentioned Walgreens. You mentioned Boeing. You mentioned Intel. Are you going to start to assemble a list of balance sheet problem children? That wouldn't be a bad idea. Now, the good thing is, is that all these companies... well, no, Boeing doesn't have anything to sell. There are still things to sell for Walgreens. I know Intel thinks there's things to sell. They've got to move. What I'm most challenged by is Altara. And the reason I'm most challenged by Altara is because people have been shying away from Altara for years now. Ever since they bought them, it's been like a slow burn. So when I see that they public that out, and then, okay, so what, Matt Murphy, you just had a great quarter. I'm going to go buy a company that is losing his eye links. I don't want to do that if I'm Matt Murphy. I've got a really good situation. I've got a lot of AI, and I've got a big turn, by the way, and cell phone. I've got a big turn in PC, and anything that is all of the subjects that have hurt, that have hurt Matt Murphy at Marvell are now helping. Why screw it up with Altara? We'll see. Intel definitely, I think, remains the worst Dow stock of the year. And I think Intel is, to core problematic is to be too positive. There's a lot of news and media today, Jim. We got the direct TV, Disney dispute, the carriage dispute, 11 million customers see some darkness yesterday after, Sunday afternoon. Yeah. I mean, I was, the child trust someone's disneyed, don't ask me why it's obviously been wrong. And I felt that under 90, you should buy it, talk to me, Jeff Marks, who runs it with me. I was thinking that there's great opportunity under 90. I still believe that. But this is a Dow stock that has, this one has the worst chart in the book. The chart here looks very much like Grantee Ton, and the North Face is very dangerous. If you look at that, I mean, look at that. Now, they have to find someone soon to run it. And I know that Bob Iger's there, but you need, you need a Starbucks. You mean shoot for the moon CEO, huh? Yes. Shoot me. Wow. Great game. But yeah, they got a shoot for the moon. And I just think that right now people, Jimmy Potaro's one. No. Potaro's fabulous. Like, Potaro's like unbelievably good, and he's fresh thinking and he really understands what to do. And I always feel like, why don't they just name Jimmy Potaro? But I think what happens is that there's anyone who's met Jimmy Potaro's going to say name, give Potaro the job. That's how it is. I mean, I think Potaro is electric. Of course. But Jim, as you and David both know, a lot of it comes down to experiences, parks. Right. We do have some of these striking workers at Hilton High at Marriott. I know. And there's, there are just strikes, there are a lot of strikes going on and we tend to ignore that there's strikes, and you can't. I mean, one of the things that I think that Brian, that Nichols is going to solve at Starbucks, is going to start with a Labor Pop. You got to solve the Labor Pop. That's another thing. You have to have these things because that one of the things I don't, why do, why do people come back to MAG 7? You ever hear about balance sheet problems? Ever about labor problems? And the like, the labor problems are, they have to pay AI people 25 million, right? So it's better to just go buy, if your AMD go buy some company, it has a lot of engineers. Private company. So I mean, I look at, I look at this group and I think, Microsoft, what's the problem with Microsoft? Well, nothing. Like, I want to own something where nothing's the problem. Except maybe regulatory friction, yeah? I think people, I think the regular, the regular is always willing to give them a pass to do. We, we, we cost them in 2000. I mean, come on. It's like 24 years ago. That's the kind of thing that happens when you get older, you're like, wow, you know what? I went to that restaurant. It was really good. When did you go last? Oh, 1985. So you, what, do you think it's like the cop that pulls you over and then he gives you a warning? Yeah. I do think it's like that. That's always a lucky thing. Yes. Yeah. I'm going 78 on 70. I thought that was a speed limit. That was actually done by someone I know who I love, but don't get me wrong. I, I do think, I do think that yeah. I don't know. I don't know. I, I, I think that there's a lot of companies that are getting passes right now. Yeah. A lot of companies are being waved on. On the media front, at least we get some NFL starting Thursday. I know. And by the way, Peacock game on Friday. And you, that's an important game. Yeah. When we see it's on NBC and Peacock, that does not make me feel that Peacock's going to get more subs because I have NBC. I have Peacock too, but I, I guess I can watch him. I get two TVs. I watch one on Peacock. You're not a corn cutter. No. I'm an idiot. See, they call me an idiot. It was like a file. It is. Yeah. We were trying to watch US Open and I, my wife couldn't get it. I said, why don't you try YouTube? She said, what of YouTube? That's like a certain, you know, you want, no, no, you're $75 a month. Well, how do I just pay 75? Well, because that's what everyone's doing. Different, different times. As for upgrades, Jim, we did get Unity Software up at the Morgan Stanley. How do you like that? We should ask Pataro about Unity Software because Unity Software will allow you to isolate your fantasy players if you just have the cameras. Pataro knows this. You can just have it so you have ISOs. Now the new YouTube does have, you can isolate your fantasy players, but you can, if Pataro were to say, listen, we're going to make another commitment to fantasy. And we're going to have cameras on all your skill players and you can put your lineup in. Oh my. Because if 55 million people play fantasy and the world is blank, our country is blanked. I mean, I know they want to do Brazil and Frankfurt and London. But Pataro knows the power of fantasy and fourth quarter. And I know that if he, if he got with Unity, which is now a pathetic parody of the human mind, they could get it and do the stuff where they ISO and it would be so good. Sounds like Pataro's a name you would bring to Gorman's search committee. I think Pataro's brilliant, but even more than brilliant, these incredibly nice people. Anyone who's been with them. I mean, in the old days, I wanted to switch and work, work at ABC. And this man's a visionary, John Walsh, before he did a lot of stuff with ESPN, was the first person who ever lent me money when I was in trouble with gamblers. Just kidding, I just had a losing streak. But I do think that Pataro is someone who should go and run a network somewhere because he's that good, he's that steady, he's that open-minded, and he knows fantasy which really does matter. Now, I've got to notice the Green Bay Packers, now they're going to lose on Friday to the Eagles. I don't know, he starts the season with one. But I do think that Pataro's the guy that we got to really take seriously because he's got a vision. He has a vision. Last industry bucket I want to hit Jim is in autos. One, two things. One is VW, maybe thinking about closing their first-ever German factory. That was incredible. As they struggled with this transition to EVs. The other is Adam Jonas and Morgan Stanley, who trims their EV penetration rate by three points. Right. Look, this is Olotesta. It comes out smelling like a rose on this because they're selling well in Europe. That feedback, I don't think people realize VW is a national treasure. By the way, German, we never talk about these German elections because they're too hard to really be able to overlay stocks. And, wow, VW, that I think it's a cautionary for every, every auto company because they're so smart. And the last thing I want to do is that, national treasure, most of my national treasure, most of my largest plant in the day, you got $55,000, $55,000 people in Puebla, they got a gigantic plant in Mexico, which is, by the way, probably the best-run plant in the world. And the German unions are going to have something to say about a closer than that. Oh, my. I think they're going to have to go back, they're going to, like, they're going to ask for the moon, and they may get it. I don't know. I was just, look, we sold the Ford, we gave up. You did? Yeah, I just, and that was on warranty issues. And anyone who's bought a Ford in the last few years, I mean, you're always afraid of a notice. I got it for my maverick and my wife took it in, and of course, tremendous paywell in our family. So that was enough, no, but I do think that Ford is challenged because they didn't buy back stock. And that, even though I guess Bill Ford doesn't want that, I'm taking the Bill Ford in general and I cover the Bill Ford at Ford. We'll keep an eye on that as we await some auto sales today. Meanwhile, speaking of manufacturing, manufacturing PMI out a couple of moments ago, final read for August 479 that compares with 48. Okay. Okay. That's unbelievable for bonds. That can turn around things for the market. I don't want to do short equities when yields are going, are plummeting on that, just plummeting. I think that you get a big comeback right here with yields. Anyone who wants who looks at bonds goes and buys right now. They buy equities. Based on this. Oh, yeah. Yeah. I think that now people are going to say, "Well, did I just get my chance?" Or the people say, "Look, I want to buy Coca-Cola and PepsiCo. I want to buy Procter on this slowdown." I think that you just buy, you can buy the mag. This is a really good number for equities because it says the Fed maybe has to cut twice. And that cut twice is Nirvana for people now. If they want to play that game, I think they should be looking at individual companies because there's just companies other than Walgreens that Intel and Boeing that are doing quite well. I mean, we have very, very contained area companies doing poorly. Right. It is the first contraction in several months. And to Jim's point, as we go to break, check out bonds, you will see that 10-year yield coming off of you. Yeah. United Health is a good proxy of that 10-year yield. Interesting. Well, watch that. Of course, we do get some Fed speak this week. That's faster already on the tape, but Friday is the last day before the blackout. We're back in a minute. NBA superstar now Olympic gold medalist Steph Curry said he's enjoying life in this viral Instagram post over the weekend already has one and a half million likes. He's such a delight. He's just a delight, including fellow Olympian LeBron James, who replies darn right, the only way. Steph's going to join us here at post nine next hour. In the meantime, it's stop trading with Jim in a minute. Let's get to Jim and stop trading. I want you to go to my friend, Michael Sembel's piece is more nice talking about AI spending. It's a must read. And we do have a member he compares to spending to fiber in the '90s. Wow. Well, which is, but I've got to do more reading. I'm sorry. It just came out and Michael's the best. So I have to be turned into a JP Morgan strategist. This piece, there's a strategy piece from on commodities from Goldman. The copper rally delayed. I think the copper rally derailed. This was a super cycle call that they made. Remember, copper's needed for EV and for data center. Well, data center, people worry about that. And this is crushing free port. And I just think you have to let this play out. There were too many super cycle bulls on copper at the top. And it's miserable. Don't forget copper's also largest country is China on copper. And that's building of buildings. So you've got three bad markets, EV is bad. China center may be people think on the out-years, and that's why I want to resemble us. And then China. So I don't want to own copper for ever's sake. And by the way, B of A today cuts their China GDP for the year to $4.8. They were at $5, but not going the right direction. China's so problematic. I continue to believe that if you're in any Chinese stock, even Alibaba right now, wow. But that Temu, PDD, that was awful. And I continue to worry that China is just going to disappoint, disappoint, disappoint. I've read a piece this morning about the watch industry being bad. The watch is the way you show your wealth because you know how to have apartments that are mansion. You can't have mansions in China. So what you do is you show Rishmaq. Well, that's just great. How about tonight? PDD. Very bad. Really bad. Uh, I am doing a look at sphere. Sphere. Sphere. The Vegas venue? Yeah. It's got downgraded today. And a lot of people are very excited about sphere. I don't know. You got to see where we come out. They got the Eagles. So, I mean. Yeah. Okay. So, yes. And that's why we're going. I mean, the Eagles are not really the Eagles that we saw. They're more, they're just like, you know, the Eagles on Friday are better than the Eagles at sphere. Although, then again, I'm, but you've got to run scare because Green Bay is an exciting key. It's a competitive in any sense. No. Jim, we'll see it tonight. Mad money. 6 p.m. Eastern. When we come back speaking of pro legends, four-time NBA champ Steph Curry right here at Post 9. Don't go anywhere. You've been listening to the opening bell on CNBC's Squawk on the street. All opinions expressed by the Squawk on the street participants are solely their opinions and do not reflect the opinions of CNBC, NBC, Universal or their parent company or affiliates. And may have been previously disseminated by them on television, radio, internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. 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