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Let's give you a look at futures, we get started with trading 30 minutes from now. How are we looking? Yeah. What do you think, Jim? Well, look, we were at 3.30. Looks like it was going to be another really bad day. There you go, having that turned around a bit. Our roadmap does start, as it often does with stocks, as you just see right there. Looking to continue a rebound from, again, that bad week last week, course week of the year, in fact. Oracle is helping to boost the NASDAQ. We're going to spend some time talking about the earnings from that giant company. Speaking of giant companies, the biggest one, Apple unveils its first iPhone design for AI. Shares, though, under a bit of pressure. This after the EU's top court ruled that it has to pay billions in back taxes. And a big board shake up at Southwest. Chairman and former CEO Gary Kelly is set to step down. This, of course, amidst the pressure from activist investor, Elliot, Jim, and I have been covering that one for a while. We'll also talk about it. It's not just Kelly, it's six board members immediately. But let's get to the markets, Jim, and just sort of start there on this Tuesday after a rebound yesterday, given, again, what was a decidedly down week last week of the markets. Look, I think last week the tone was, all right, we've had this huge focus on AI and the build out. But perhaps we should be much more focused on the slowdown in the economy and therefore move toward owning the proctors, the Colgate's. By the way, like the General Mills is health care. And that was the zeitgeist of last week. David, last night, Larry Ellison, and I know we're going to get to work. Let me just go there now, as I was saying to you last night, Larry Ellison basically sought to redefine the whole narrative and basically said, OK, look, those who think that the data center and the build out are finished. He said, we have 162 data centers, but they're going to have between 1,000 and 2,000 data centers. So maybe that's not, we're not as far along in the build out as we thought. And I think that, yeah, I don't know, Larry, I know Safra Cat's the CEO, but I would say that in the animals of Betty against Larry at any venue. Yep, big mistake. So I'm with Larry. You and I spent a lot of time during many shows talking about data centers. I want to do it there. I want to share with our viewers some of the sound from the call. We don't get that quite ready yet. No, definitely not ready. You can't even go to other things. We're working on it. We're working on it. We're feverishly working on that, getting that for people. But before we move into Oracle and get into the numbers themselves, obviously you can see what the stock is doing this morning. Any other thoughts in terms of the market? I mean, you've come to Oracle initially because why? It's a tell for the market overall. Well, because there's a big belief that what's going to happen eventually is that Meta is going to be finished building and Alphabet's going to be finished building and Amazon's going to be finished by Microsoft. And what he says is you're never going to finish. You're never going to finish. You're never going to finish. And because he says you're never going to finish, suddenly you can put a different price to earnings multiple on the hyperscalers. And by the way, I haven't mentioned it yet. But, you know, it gets as big as well. Nvidia. Thank you. Thank you for that. You're welcome. Larry Ellison basically endures the Nvidia playbook. He talks about it. Look, I'll tell you something. I know we're really not ready yet to talk about Oracle. You know what? I want to talk about Oracle. I don't care if we're ready or not. We're going to talk about it because you've made it clear why we need to talk about it. Remember, we're in Oracle World, David. Oracle World is going to be Thursday. They're going to up numbers because Oracle World is just apparently a huge blast. But, alright, so Larry Ellison is Chairman, Chief Technology Officer and Co-Founder. David, he monopolized the conference call. He kept apologizing for it, and then he kept monopolizing it. And it was joyful though. It was not dogmatic. He talked about David, my absolute favorite part was what's going to happen with Bettequier. She gave me a use case. We've been struggling with use cases. You know, yesterday. Struggling with use cases for AI. Jim, by the way, let me just set the table here a bit. Because, of course, you see the stock is up. We're talking about Larry Ellison's. Many comments on the call, and we do want to get to some of those comments as well about data centers. But the company did post quarterly results that were above the consensus of analysts. They also announced this strategic partnership as well with Amazon Web Services. Very important. And on and on from there. Well, David, there's a moment. And I'm going to quote it. I'm not going to speak like in this ten-twoying voice of Larry Ellison. But he's talking about the future. And he goes, I was a Stanford with my son one time. And it took three people, three different physicians, to actually be able to find his x-rays. The Stanford now. It's not a doc in the box. This is how you find the x-rays for Larry Ellison. You say, Oracle, please show me Larry Ellison's latest x-rays. It's a voice interface. You ask for them. You don't worry about it. How do you log on? Well, you look at the computer. It recognizes your face. It recognizes your voice. It knows you're the doctor, and you're authorized. Look at that. And there it is, David. There it is. That's the future. That's the future. Well, right now. To get in here, Jim. Well, it's going to take a while. He says, if you use certain futures now. But you're also going to have to build an awful lot of data centers to get you there as well. Well, David. The reason I did this whole secretist thing. Yes. Is because what is the fundament of a data center? In power. Power. Without a doubt. And you're going to be building nuclear reactors to fund data centers. Actually, it's funny you mention that, Jim, because that is exactly what I wanted to focus on in terms of Mr. Ellison's comments on the call. And I do believe this is an important moment for our broadcast. Because we don't usually get these things right. But let's take a listen to Larry Ellison on data centers and power. You can't just build a data center. You also have to account for the energy and the transmission of the energy from where it's generated to the data center. And, of course, the most efficient way to do this is actually build the power generation plant right next to the data center. So you transmit over the shortest distance. And we actually have very senior people who are very -- actually come from the utilities industry as strange as that sounds. That are expert in doing this and helping us build these gigantic projects. Did I pick a good one for you? I think that's brilliant because what's happened is that the grid is obviously not capable of handling all the power. When you start hearing that there are small form nuclear reactors actually going to be built, when you hear the idea of a gigawatt. A gigawatt. We looked it up. That's talking about 750,000 homes for a year. Right. A year for data center. Data centers as far as the eye can see. Now, I want to compare that to a lot of the chatter last week, which says repeat data center. I did not feel that. No. I mean, the numbers that they're using here in terms of their build out, obviously 100 -- they already have -- has 162 cloud data centers live and under construction throughout the world. Largis, as you just pointed out, it's 800 megawatts, but they're talking about going to ultimately gigawatt data centers with huge 32,000 node NVIDIA GPU clusters. There you go. And he says, "Orico, we've been proven to be very good at building those." Well, everyone's about to tell us about how they've got a whole team that is a full of utility executives. Well, no. I mean, remember, this is something that Jerry Parker used to -- was the great Intel builder. Every single found you was exactly the same, but you could go to the Israeli family, the IRS family. They were all the same, so you could just parachute people in. He's doing that with data centers, but no people. Right, no people. Right, he talks about it all having to be automated. Because people are cropped and they get sleepy and they're no fun. Everything's got to be infected. In fact, he makes a reference to Elon Musk's Starlink satellites as well. He's like, "Those have to be fully automated," and then he makes the connection to and so do data centers. He's fully automated. Well, he also owns a lot of Tesla, by the way, as we know. Oh, right. Remember that? Forgot. How many young does he sound? I know he's 35. He's 80 years old. How does Larry Ellison's net worth today from judging from the 41 and a half percent that we believe he owns? 1.14 billion shares. You can do the math. 172 or so billion. Just an oracle alone. He's quickly moving up the ranks of worthless people. He's the best island I've ever been to. By the way, has a deal, of course, to acquire a paramount in which he's contributing $6 billion. His net worth today is more than double his contribution for the paramount equity that he has. Well, look, I wish I could sum out. There's this whole cohort of people who know him as part of this company that grows 2 to 4 percent. That's a data center company. That is so far behind them. This is a cloud and very fast data center company. On Thursday, when they raise numbers, there's going to be a second wave of buyers. Wait, I'm sorry. I'm not following over there. They had to raise numbers. They didn't raise numbers last night on the comp school. Okay. That's going to come Thursday. That's going to come Thursday. Oracle world. Ah, thank you. Okay. Larry's world. You need to film the blank sometimes. We look at that chart. Not just for me. Yeah. That's a chart. That's a chart. Chart and a half. Any read through for this via the competitive set. They're obviously different in that they're not developing their own large language models, right? No, you can... They're just running everybody else's. Yeah. But, you know, David, there's a lot of talk about who's the winner if you just want to open your system. And it's Zuckerberg. That is meta. That is meta today. That is open source. Yeah. And I saw a llama this week. He did not spit it. Me llama spit it you. Actually, I had some friends who would keep some llamas. Yeah, they spit it. They spit it. They're very pretty. My late mother got a longer once right in her face. Right, yeah. I want to kill the darn thing. No, don't kill a llama. But no llamas are protected beasts. Yes, don't kill them. And llama the meta system is loved. A lot of different ways that they're going to be able to deploy it. Don't try meta AI to ask a question because it can be really hysterical. You're the wrong answer, but it's very polite. It's very polite. Well, I know that you use any number of the different services in terms of... They even roll the... General of AI. We're all beginning to recognize that the hallucination factors too great. It can't be trusted unless you pay it in $20 to chat, GPT. David, you can't trust the answers that you get. And the answers are often very complicated and wrong. Okay. Anything else you want to talk about in terms of the market or anything else before we take a quick break and come back and talk Apple? Yeah. I mean, we got a lot of... Yes, I have things to talk about. I know. Well, we have plenty of time. I was going to talk about the... You're on your own move. No, I don't want to talk about that. I'm talking about the broader market. The AstraZeneca failure. No, no, no. I was going to talk about the J.P. Moyer letter nation. Yeah. I've got to talk about the D-bank. Did I do what you meant? Oh. Resuming coverage of Tesla with the buy. Who was that? Which bank? All right. Well, there. You see what's coming up next. Hey, by the way. Cleveland Cliffs. City cuts numbers. Cleveland Cliffs. 18 to 12.50. I think that we should talk to Lorenzo. I don't think Lorenzo wants to talk to me anymore, although he's going to come out victorious. Oh, that's your book. In this U.S. still... Find your music. Find your music. Find your music. Do I amuse you? No. But you amuse Lorenzo, the man, the CEO... CEO. By the way. There's a man who watches the show. Yes. He's worth like 100,000 households. People who know... He's like a megawatt. He can power a lot. I don't know what that is. One giga... One giga, yeah. One giga. Yeah. One giga, whatever. Seven hundred fifty thousand homes. Seven hundred fifty thousand homes. Man. All right. Coming up, we're going to discuss all things Apple, the new iPhone 16, and AI, of course, as well. We'll also talk about that setback when it comes to their taxes and the EU. Let's give you another look at futures. We can serve with trading 17 minutes from now. We've got a lot more squawk on the street for you straight ahead. Earning your degree online doesn't mean you have to go about it alone. At Capella University, we're here to support you when you're ready. From enrollment counselors who get to know you and your goals to academic coaches who can help you form a plan to stay on track. We care about your success and are dedicated to helping you pursue your goals. Going back to school is a big step, but having support at every step of your academic journey can make a big difference. Imagine your future differently at Capella.edu. AI might be the most important new computer technology ever. It's storming every industry, and literally billions of dollars are being invested. So buckle up. The problem is that AI needs lots of speed and processing power. So how do you compete without cost spiraling out of control? It's time to upgrade to the next generation of the cloud. Oracle Cloud Infrastructure, or OCI. OCI is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds. Offers one consistent price instead of variable regional pricing. And of course, nobody does data better than Oracle. So now you can train your AI models at twice the speed and less than half the cost of other clouds. If you want to do more and spend less like Uber, 8x8, and Databricks Mosaic, take a free test drive of OCI at oracle.com/advanced. That's oracle.com/advanced, oracle.com/advanced. How did a master cyber criminal, an Russian oligarch that ties to the Kremlin, hack into America's financial system, scamming millions? CNBC presents the crimes of Putin's trader. Listen wherever you get your podcasts. Wall Street continued to digest developments from yesterday's big Apple product launch event. The company showcased its new iPhone 16 and the 16 Pro. With the first Apple intelligence features, they're set to launch in beta. That will be next month. New Apple watches and an AirPod also unveiled. Obviously, we talked about this yesterday and in the days leading up to the big load time announcement. Stock was down. Looks like it may be down again. Give me your reviews. All right. I think that once again, the big problem with a lot of people, I'm going to quote Ben righteous, who I think is the, he and Dan Ives bring something to the party. They bring humor, but they also bring irony. And he goes, you know, you, wow. If you hadn't read some of the overly critical media previews headed into this launch, you would have thought Apple was going to show two tin cans attached by a string and called that the Apple 16. Now, I think it's all incremental and people do not want to understand. If you have something that can help you with sleep apnea, if you have something that can be a hearing aid as opposed to the four million that are sold every year, you have these incremental people 20 million worldwide who just say, wow, you know what? I've got something here. I have tinnitus. So if you have tinnitus, you want to block it with a hearing aid. It just gives you noise. But if your phone rings, you're dead man because then you have to pull that out, pull it in, blow it by. No, not anymore. And what I think that Tim Cook, I once showed him my problem with tinnitus and Apple and he was like, I thought he wasn't paying attention. He probably wasn't. But he was so delightfully said, wow, that's really interesting. And I was showing him how if you could make a hearing aid that would somehow blast noise but also allowed me to make a call. And he said that's interesting. It's probably six years ago. Here it is. I don't think he said, hey, Jim Kramer once, because that would be, that would my head could not fit in the door of the nearest doctorate. But I'm just saying that what he does is try to find things that are incremental that add up to being millions of people, but it's not what Wall Street was. Will it be enough to model? Will it be enough? They just want to model. They do. But they also want to seek some growth because it's been a while. In fact, you know, I mean, people go back to 2021 for the last true model upgrade that had a surge, brought a surge in new purchases. No, that's true. But I guess it's going to be enough. Are consumers going to wait until the actual intelligence, even though the fund can process that intelligence so they're going to wait until it's available? No, because everyone trusts Apple's downloads now. I mean, you get it, says it's going to do it tonight. You go to sleep, you wake up, it's done. Apple is such a fixture in people's homes. It is so easy to use and intuitive. David, people just say, look, I'll do that and then I'll get all the AI. I want the questions. Do you want the AI? How important is the AI? What do you make of the fact that it didn't raise price? I like that. But then again, it is so clear that the price is going to be dictated by Mike Siever by T-Mobile by ATT and Verizon. David, now here's the question. Yes. ATT's balance sheet getting better. Yes, it is. Yes, it is. Yes, it is. So they can be more content. ATT's getting closer to two and a half times. It's going to be delivered by no other way. It's interesting you mention AT&T. Why? Why? I'll be speaking to John Stanky in the next hour of Squawk on the street. You have him on the show? I have John Stanky to CEO of AT&T on the show. Tell me so high. I will. I know that he's very fond of you. You know what? I'm an acquired taste. You are an acquired taste. I think he... Remember what that llama did? I think that's what he did. The llamas, yes. No, I'm going to say spit at you. I'm telling you. Look out for longer. That's what they call him. We do have other news on Apple that we should get to before they roll the music, which is, of course, they're going to pay a lot of money. $14 billion. Oh, David. Billion here. Billion there next week. Really? Yeah. That's a real number. They already paid taxes. That's a real number. Right. They would. To me, it's the honey pot that is America. That would just honey pot. That's what they do to us. David, that's why I won tariffs everywhere. I won tariffs everywhere. I won tariffs on everything. I won tariffs on everything. A one-time income tax charge in its fourth fiscal quarter ending September 28, 2024, up to approximately $10 billion. You think you'd be able to see it in that balance sheet? No. I mean, you are talking about a company that generates so much cash. Apple today, they can't raise numbers. So these analysts say it's just a nothing burger. David, get in line. I sure am. Come on. You'll upgrade. I have a 13. My daughter with the 5 is more. I'm at the mercy of our employer. Who's that? CNBC. See, I've been here so long. My first phone was a company phone, and I never got a personal one. I pay for it much. So they know everything about me? I'm not going to put it into a jury. You paid for dinner last night. I'm not going to put it in. And I appreciated that. I never put it in for expenses, because you never put it in for expenses. I mean, you're never ordering for expenses. That is. Net worth made sense, but he did pay. You're at a nice stake. Overments should be a big stake later tonight, though. That's just too much to digest these days. I know. What are you doing to me? No, we don't have the ability to digest that level of meat anymore. No. Yeah. So what am I going to do with that cow that I just ran in fish? Alright. Think about your mad dash. Let's count down to the opening bell, of course. We got about nine, not even eight and a half minutes before we get started with trading. You can see we are looking for a bit of a higher open, a lot more spot from the street straight ahead. Earning your degree online doesn't mean you have to go about it alone. At Capelli University, we're here to support you when you're ready. From enrollment counselors who get to know you and your goals to academic coaches who can help you form a plan to stay on track, we care about your success and are dedicated to helping you pursue your goals. Going back to school is a big step, but having support at every step of your academic journey can make a big difference. Imagine your future differently at Capella.edu. AI might be the most important new computer technology ever. It's storming every industry and literally billions of dollars are being invested. So buckle up. The problem is that AI needs lots of speed and processing power. So how do you compete without costs spiraling out of control? It's time to upgrade to the next generation of the cloud. Oracle Cloud Infrastructure, or OCI. OCI is a single platform for your infrastructure, database, application development and AI needs. OCI has four to eight times the bandwidth of other clouds. Offers one consistent price instead of variable regional pricing. And of course, nobody does data better than Oracle. So now you can train your AI models at twice to speed in less than half the cost of other clouds. If you want to do more and spend less like Uber, 8x8 and Databricks Mosaic, take a free test drive of OCI at Oracle.com/advanced. That's Oracle.com/advanced. Oracle.com/advanced. All right, let's get to a mad dash with Jim. Saw Johnson Controls. They're amongst the S&P gainers right before we get started with trading. Why? Well, okay, so again, I'm always trying to figure out the key to the market. And it's this piece, believe it or not. I'll tell you why. Bank of America goes best in class data center assets, upgrade to buy Johnson Controls. Last week, this would have completely laid an egg. I mean, no one would care at all. If anything, they discovered, oh my God, it's really a data center. That's just a curse of a lifetime. Morning, if you believe Larry Elson, there's going to be 1,000 to 2,000 data centers, then Johnson Controls, which is the second, number two in market share, in what are known as chillers, people say that my name is Dr. Chil. Sorry, I'm very chill. Well, this company is chill. And if you think that chillers are going to be big, which I do, then you buy Johnson Controls. So this is the cooling system used to keep things? Well, data centers burn hot. I mean, when you speak to Johnson Controls, why we talk about the power consumption, it's to keep them cool. So if you think you need air-cooled or you can use water-cooled, that's also a super micro issue. But Johnson Controls is a company in transition. By the way, Train will be at Dreamcourse. I'll be interviewing them when I go out to Dreamcourse, which is the big sales force, Hootenhauer. But anybody involved with that carries involved? David, the number of companies involved in a data center is rather remarkable, and they all plummeted last week. Now, they're coming back. Right. I mean, come back. That's going to take us back to Oracle and our else as well, in those comments, because I think they're all to the key in some ways. You hear the tears here? We got an opening bell coming away in 9 seconds. Here at the big board, Goldman Sachs has 1 million left women, and an economic opportunity. This is 1 million, likely by 2030. If it has that, he will fight for it. He will fight for this community. He will fight for this community. And that's what I'm coming to. How many municipal income ETFs is what you live for? I remember when you told me last night, there's a new deal coming. I didn't know it was that intermediate municipal income ETF, which, by the way, I asked you all for some value because, you know, the taxes are very good on them. Wow. Okay. David, you just talked about Amazon for one second. We'll start with Amazon, and then I want to get to-- I see it for that precipitous sale walk on Friday. Yes. Back to where it was. Yes. Which is very bullish. I continue to think that Amazon's going to have a great quarter. People aren't just meaning the kind of sales they're going to see. Very important. Okay. I don't know whether to talk or just let them just keep cheering. Sure call. Yeah, sure show. I want to talk Southwest. I want to talk Southwest. This is unique. Unusual. Unusual. Why? Well, remember, of course, Southwest is in the midst of a significant proxy fight in which the activist investor Elliot, which owns 11% of the company shares, is trying to seat as many as 10 new directors. So in the midst of this proxy fight, you get an announcement from Southwest that says six of our directors are retiring almost immediately after the next board meeting in November. And Gary Kelly, of course, longtime CEO, chairman, is going to announce that he retires immediately after the 2025 annual meeting. Jim, interesting here because in his letter, in his very long letter, Mr. Kelly does reference the fact that he met with Elliot Investment Management at New York offices to meet in person, commence a productive dialogue. But that's it. Then they basically told him, "Hey, this is what we're doing." They didn't really have a dialogue leading up to this where you would have thought perhaps if they were willing to have six directors leave the board, and might have been able to come to a settlement. I know, but I think that one of the problems is it was not Gary Kelly as chairman as the Bob, according to what I source as an Elliot. Tell me what you hear. Bob Jordan. You say Bob Jordan. Yeah. They're not Gary Kelly. They continue to endorse Bob Jordan as the CEO now. Obviously, if you're Elliot, you have to view this in a positive light in the sense of Southwest went out to its shareholders. They clearly heard something that said to them, "This is not what we like." They came back and now six directors leaving the board. I think it's really amazing. It is major. They go on to say that they just go through some of the things from the letter and who they were. They anticipate appointing four new independent directors. They do say they will consider director candidates that have been proposed by Elliot. They have also done some corporate governance moves. They eliminated the executive committee structure, created a new finance committee. Here's a quote from Gary Kelly. "We've been committed to engaging constructively with Elliot since its initial announcement." That was back on June 10th. They propose all the directors, by the way, Southwest did on the 13th of August. They go on and say they have solicited feedback from a range of other shareholders on the issues Elliot raised in his presentation, other public communications. Then, as I referenced, they also met with Elliot yesterday and shared a specific framework to address its concerns about corporate governance and performance. They say they continue to engage constructively toward a collaborative resolution in the near term. Now, let's say they got the six people in. Could the six people turn around immediately and say, "Listen, it's time for Bob Jordan to go." It would seem to be a key consideration here. I want to look at the letter because it was very clear the letter from Mr. Kelly. Issue number one, CEO. The board and leadership of Southwest unanimously support Bob Jordan, CEO. Proving track record over decades. Most importantly, he has what it takes to lead Southwest to a significant transformation and usher in a new era of profitable growth, innovation, and industry leadership. Those are Gary Kelly's words in this letter. Well, I think that the question will be, does Elliot think that Jordan can really do that? Well, why wasn't Jordan doing it? I think that this was major and also a statement to Elliot saying, "Okay, look. Do you think you can do it?" Now, come on in. And I found it rather surprising, frankly, because that board is a very, let's call it, a hometown board. And suddenly, you have these brigands who come in, but they're actually not brigands. They have some really good ideas about how to run a better era. David, how many times have you sat down with people who are familiar with Elliot and you look at what they want to do? And you say, "Yeah, that's a good idea because they represent a common sense view. They're not a McKinsey, you don't have to pay for it. They come in. I keep thinking about Acoa in the end. You've got how I met my mother, also known as Halmette. It was one of the greatest... What? That's what we call it. I think it may actually be how I met my mother, and they shorted it to Halmette. And that is one of the greatest types of stuff. Well, it's funny you bring that up because of course... Well, Halmette... Are Conic seven years ago? No. That was... Charlie... No, who was in that one? Elliot's going to... No, I mean sitcom, how I met my mother, who... Jason Segal, yeah. Neil Patrick Harris, thank you. Neil Patrick Harris. That's what we need them for. They haven't launched a proxy fight in seven years since Arconic, is what I was going to say about Elliot. For a long time, that's what you're talking about. For Conic, too. And I thought was not that happy with... Oh, that didn't end well for Klaus. No, that ended up sub-optimal. Don't answer emails when you've had too much to drink. That's not all you CEOs. Don't do it. And if you have to do an email, never put more than one line. Keep it simple. Don't be drunk when you're answering emails, particularly when you're answering an activist. If you send an email to David Fable... Less than number one... ...and the activism... ...and the rest of things. Don't do this drunk. No, that was an ill-advised strategy. It worked out for them. But what a fantastic reward. Take me to the list. What else do you want to talk about this morning? Go to the list. Okay, so. There's a stock not ready yet to endorse it, but boy am I ever getting close. And it is Kevin Plank and Under Armour. Now, it's very crowded because we have Nike and they're faltering. We have Deckers, Hoka, and they're in a sentence. All in one in a sentence, new balance in a sentence, Adidas in a sentence. But I think that if you take a look at the charge that Kevin Plank took today, 140, 160 million... ...75 million in cash-dated. These guys are very, very serious. Total restructuring is 220, 240 million out. They thought they'd only do 190, 42, 14. Now, this, by the way, remember, this is Kevin Plank actually running the company. Yes. He had not really been running the company at various proxies. It's too early, but I'm close to saying it's time. Close. All right. Well, you said a lot just now, but it's close. What's going to get you there then? Oh, he will. I'm one of the things. He will. Yes, but it's too early to say. Well, that leaves some doubt. Well, no. I think that Kevin would say, "Listen. I'm not done." It's a work in progress because David, look at Nike. I mean, Nike has to do so many things. And you can only imagine how under armor, which is kind of an old Saran, gets to become a Rand. Hoku, it took them 14 years. Yeah. It took them 14 years to go. Oh, and on, obviously, came out of nowhere. Adidas is a famous Rand. New balance is the one that's really in the sentence, but it's private. Yeah. So, I'm just saying that under armor is close. Nike is no thank you. A lot of people think that Nike could be the source of some activism. That would be interesting. Good balance. You know, I don't think it's going to happen. He's got Phil Knight's got board control. He's got the ability there. So, yeah. Well, I've checked on it. As you might imagine, there were some ones around Nike. You know, I don't see at this point, you know, when I made calls that while Donahoe has support, he hasn't supported the most important person. Does he have the support of the people who work there? Does he have the support of the people who work there? Do you think Phil Knight knows what people want? Well, I don't know. I think they want a stock price that periodically goes higher. All right. So, you're on the record now calling for -- That's a factor. Calling for Donahoe to go. So, I don't want to put words in your mouth. I'm saying that if you look at that chart, you think that it does have a real Starbucks-like people before Brian nipple pinning. Notice that Brian nipple trade has not been diminished. People are very interested in hearing what has to say. As you know, as between a boot, when boot barn and a sneaker from Nike, I will take a boot. But keep an eye on them, but again, I think you've got to look. But Knight's got some of the slides there in terms of the board. When you have a stock like Nike, and the stock goes down, down, down, down. And then you have deckers, and it goes up, up, up. And you have on, on, it goes up, up, up. Now, they -- Under Armour's too small to matter. But I say that if you still think that Nike, that the sneaker business is horrible, why are all those companies doing so? It's a good point. I hear you. So I think that, yeah. Plus, I think Nike's done a deal. They did a deal when they gave away a very valuable property to Michael Rubin, Philadelphia. And I don't understand. Look at that. See now the good. Right. And that's -- I'm glad. Thank you, guys. That's an instructive chart. That's very interesting chart. It's very interesting chart. It was a great scenery for stuff. And other shareholders may feel that way. Again, that's it. You don't think we have to start talking about it? No, I don't know that there's any real chance for activism. Because of Buck Knight's position. Well, all I can say is that I doubt -- I mean, Buck Knight may be very happy with the way that companies run. But when you read Shoot Dog, his biography, one of the best autobiography, he would -- this is the kind of thing he would not tolerate, at least in a book. So if he wants to be true to his own precepts, then there has to be a bit of a revamping. How about a revamping? A revamping. Yeah. Running out of time. One would think. Yes. He's out of touch. Oh, my David. He's out of touch. He's out of time. Let's talk BMW. Not a stop we typically do, but important certainly in the European market. Mule beamer. Let me tell you why. BMW has cut its guidance for the year. It's related chiefly to two topics. One is supplier recalls. The other is China. Did you pronounce it the way I thought. Were you preparing for the debate? China? I said China. It didn't say China. It didn't sound like the AI version. I just snuck that in. China. You -- I just want to check to see if it was you or if it went a bit of data center glitch. They've adjusted guidance for 2024, a slight decrease in deliveries versus previous year. A bit margin in a card or 6 to 7 percent previously had been 8 to 10 percent. Return on capital employed between 11 and 13 previously had been 15 to 20 percent. And again, they are as well citing the ongoing competitive situation across poor markets, including China and the U.S. having a major impact on volume and price realization. Okay. Jim, not an unimportant stock. This is the most important story to talk about. People underestimate that Europe is based. Their autos are a fun tournament. David, you said yesterday what would happen if we let the Chinese in unfettered? Yes. And the answer is that Ford and GM would experience exactly what BMW is experiencing, which is forget it, Jake. Yeah. It's China. I know I brought that up yesterday. We had an interesting conversation around it. Just as an idea, again, nothing in any way that is going to happen or that I am endorsing pursuit. Everybody gets a car, $13,000, and by the way, they're all electric. We'd go buy the... I don't know what would happen to you. And they'd give you a chicken every time. It doesn't. It's a tyson chicken. I mean, you'd have an enormous amount of sales. You'd obviously, the Chinese would benefit. But hey, we're taking advantage of the fact that they subsidize their industry by lowering our own emissions here. We could put a tariff. It's literally double. And then we could also... And everybody gets free. And everybody gets free. Well, the power we need, we could buy more solar panels than ever. I mean, again, they subsidize it to such an extent that it's so cheap. So you're basically calling for a surrender to a country that has become an arbitrage for the... I am. That's good love. I am not in any way doing that. I'm just posing the other side of something that will never happen. No, but I do think it's going to go the other way. If you bring up the debate tonight, it's the one thing that kind of was to carry over from the Trump to buy the administration was the antipathy towards China and the tariffs. Tariffs are bad. We know that from history. They're bad. The free market's good, but we want fair trade. As Peter Navarro used to talk about who made me back, David, working with Trump after a little stitch. Kind of a hiatus there, a hiatus of appearances. Yes, he had a hiatus while he was a person. Well, he was at Yale? No. Well, Peter is very... He would like to have major tariffs on the Chinese, and he may get his wish. We embrace all of our graduates equally. I think Andy Fastile also went to Tufts. Okay. Oracle. Let's end there. Not end, but let's at least come back. It's not going anywhere. Up 13%. Okay, so let's put up this one here. This start was up 7, and then people realized way to say it's up 9. And then when Larry said we need 1,000 to 2,000 data centers, that was it. Because that guy, again, I don't... David, how do we impress upon people? That when he says 1,000 to 2,000, he's not joking. I know. He's not joking. Take a listen of what... By the way, a man is an island. Not. Excuse me. No man is an island? Forget that. That was a song. And they didn't like each other anyway. He is an island. He owns an island. And he's a very young, 80 years old. And his network today is skyrocketing. He's quickly moving up the ranks. I think he was number 5. And just coming over here, Safra. Safra Katz being left out of your dialogue is sinful. Safra Katz. Although she was left out on the call because Larry talks so much. He did talk a lot. He was very excited. In fact, here's something else from the call that Ellison had to say in terms of AI models and the like. I mean, these AI models, these frontier models, are going to... The entry price for a real frontier model from someone who wants to compete in that area is around $100 billion. Let me repeat, around $100 billion. That's over the next four or five years for anyone who wants to play in that game. This business is just growing larger and larger and larger. There's no slowdown or shift coming. 40% of that goes to NVIDIA. Yeah. And yet, NVIDIA is acting as if it's done, as if it's kaput, David. Kaput. And I think that's wrong. And a lot of it is because of the chart. A lot of it is they're going to have zero dark 30 options on it soon. You know, the zero options. And what I find really repulsive about this is that people say until it retests the $90 level we're traded on a young carry day. Yes. It can't go anywhere. Larry Williams, his corn bus market historian says it can't go anywhere and talk toke. So, but be aware that the check goes to NVIDIA. Somewhat to Johnson control, somewhat to eat, somewhat divertive. But NVIDIA gets the big check. And yet it doesn't matter for the stock. But again, to the number that he was talking about, $100 billion. That's going to be spent by only a handful of companies. It's Microsoft, it's Amazon, it's meta, and it's alphabet. That's it. That's it. And that is I think it's perfectly realistic. So, I suspect that there could be four companies that are in this. As a member of the network TV. It's an ABC, NBC, CBS, and Fox. Apple is not. Yes, I do. Apple is not spending that. They're the free rider here. They are the great free rider and who knows if they're even done. What happens if they announced a deal with another one of these companies? By the way, Gemini and Google were very, they did not bring home the bacon, so to speak. When I used them. No. No. We'll be the chat sheet. We teach $20 a month. No. Yeah. No. Jim is testing out all of the. Why not. He was smart. All the generative AI. David, they are so apologetic when they screw up. It's incredible. It's a good thing that they aren't there. I wish I had been his out of politics earlier in my life. Soon enough, we're going to be replaced. Is that to a break? Yeah. Wouldn't have to. Sorry. Sorry. Okay. Oh, we have contracts. But then we're done. We're not going to be replaced by. I told you. You went away. AI. Robot. Whatever. Generation had me. I was even an Eagles fan. Yeah. All right. Let's give you a look at the bond market real quick here. Get to our bond report. We, of course, have been coming down and yield on that 10 year for some time. But you can see today where we're hanging right in there at 3.7%. And we do, obviously, have a bit of an version there with the two-year below it at 365. All right. Daniel Pinto, you know, can run the company tomorrow. And, by the way, don't take my word for it. Ask our major investors who know Daniel Pinto, you know. And so that's what should give you comfort. And then we'll do the right, the how, the why, the when, the where. We'll be done the right way. And, obviously, orchestrated and orchestrated by the board. And I'm comfortable with that. And it's the last and most important thing I'll ever do. And I want to, you know, we all want to get that exactly right. And I'm not going to worry about what I'm going to do after that. That was Jamie Diamond. A few moments ago at the Council of Institutional Investors. Their fall conference talking succession, as he often does. He's been in the job almost 20 years to go over in 2005. Long to serving, obviously, CEO of a bank. 68 years old. So, still a young man. Young man, I will tell you, the Jay Pimor was up very big yesterday. So don't look at the stock now and say, well. Why was Wells up today as well? Because they guided in line. A lot of people thought they were going to shortfall. And that was at a conference. What matters to me is the stock that we talked about. It's Charlie Shore. It's 10 times early. Are you kidding me? Good. 10 times early for Charlie Shore. Maybe the smartest mind after Jamie Diamond in this entire banking business. It makes no sense to me. By the way, David. Doug Braunstein. What about him? Number two. Yeah, Doug Braunstein. He's a vice chair. Nothing too. Doug Braunstein. He is. I had him on. I remember I had him on like a month ago. I didn't want him. Sorry. Oh, I should have called. I was watching my fantasy this week. My fantasy. Okay. Hey, I got E.T. John Stanky coming on next hour. I'm going to stay tuned for that. All right. We're going to take a quick break. We'll get him to say goodbye. What do you got on Big Show tonight? Winner, winner, chicken wing dinner. I wing-stop one of the most great greatest performers of our year. No one talks about it. And then Mark Klaus, who has successfully turned around Campbell's in a way, David, that you wouldn't even recognize it. It's so good. And they had this Rayo sauce. I don't know if you've had it. I used it. It's what I have been using for many years. I do too. And I use that. It's my go to. Yeah. Well, unless I've got my sauce. My ravioli out. I put my Rayo sauce on and I'm good to go. Right. So you have wine punch. It's like my old days of the wine punch and pop parts that I grew up on that stunted my growth and then ravioli, chef already ravioli and chips will take cookies, which I ate through my 20s into my third ravioli. That's all I eat. I do think that these are remarkable stocks and don't give up on them. They are going high. All right. Have a great show tonight. Yes. Thank you. You're welcome. David, 1,000 to 2,000 data centers. Remember that. Okay. Everybody remember that. And tell Mr. Stankish at high. I will. John Stankish, he's coming live from the go to the facts, coming to copia conference. Keep it here. You've been listening to the opening bell on CNBC's Squawk on the Street. All opinions expressed by the Squawk on the Street participants are solely their opinions and do not reflect the opinions of CNBC, NBC, Universal or their parent company or affiliates and may have been previously disseminated by them on television, radio, internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information. 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One day after a big rebound for stocks following last week's swoon, Jim Cramer and David Faber discussed shares of Oracle surging on better-than-expected Q1 results – as well as a strategic partnership with Amazon Web Services. The anchors reacted to what Oracle Chairman Larry Ellison said on the earnings call about how data centers and AI fit into the company's growth picture. Sticking with tech: Jim and David explored Apple's iPhone 16 launch -- including what's at stake for the company's AI strategy -- and weighed in on legal setbacks in the EU for Apple and Google. Also in focus: Southwest Chairman Gary Kelly to step down in 2025 and six board members to retire in November, as activist investor Elliott seeks changes at the airline.
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