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Don't miss a minute of the action. Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Keaton here with David Faber at Post-9 of the New York Stock Exchange. Kramer is at one market in San Francisco, continuing his big week out west. Futures come alive on what looks to be the biggest gap higher after a Fed Day. More than a decade, S&P should hit some all-time highs at the open, above 5700. Jobless claims mean time, a four-month low. roadmap begins, though, with that big Fed raid cut sending stock soaring in the pre-market. One Fed governor voting against the decision, the first official to do so since '05. Plus our fears of an iPhone. Sales slow down overblown, one major wireless carrier saying the first week of sales came in better than last years. And all-garden parent, Darden restaurants, it mis-turnings expectations, but stock is rallying big time. Best name on the S&P out of the market open. Let's get to global markets today rallying after the week cut yesterday. During his news conference, the Fed chair stressed the word recalibration. Take a listen. With an appropriate recalibration of our policy stance, strength in the labor market can be maintained. This recalibration of our policy stance, it's a process of recalibrating to recalibrate, we're recalibrating policy, recalibration of our policy, begin to recalibrate, recalibrating it, we're recalibrating our policy over time to a stance that will be more neutral. Jim, I think the JP Morgan notice titled recalibration nation. Look, that makes sense. The first move after rate hike often has to be -- rate cut has to be faded. And I'll tell you why, because people suddenly say, "Uh-oh, 50." And then there are other people who say, "50's not enough," and then there are people who just say, "You know what? This takes away from further cuts down the year." All these people are wrong. What history says is that you buy the first cut. It doesn't say you buy the first cut, 25 or 25, 50. You just buy it. And I think people are still too bearish when I see that action. David, when you have something so monumental as to 50 basis point, and people yawn, you don't yawn, and you don't just watch the people yawn, you do something. All right, meaning what, Jim? Well, when rates come down, stocks are cheaper, particularly when you have 50 basis points, because finally, you might get some money from the sidelines, because it's not as attractive. And we saw the home builder stocks being lifted again today, because mortgage rates going down would help affordability. Housing got too expensive, and the only thing that's going to make it give, it's because that they lower mortgage rates than we get more transactions. Wait, wait, wait, wait. Did you say to fade the first move or no? What did you just say to very tough? The first move yesterday was to say, "You know, this didn't do anything at all. Nothing changed." As a matter of fact, you were talking about that. Okay. Not about this rally we're seeing this morning. No, no, no. This is a real rally. This makes sense. This makes sense. This makes sense. Yep. Money on the sidelines. Really? We're going to go with that already? Money on the sidelines? Absolutely. Yeah. Because there's a lot. Oh, it's coming. Yeah. Whoa. Yeah, it is. Because you look, you're going to anticipate just having your money in some money fund and have it go. Who would ever sit there and take a beating in their money fund? It's not right. The money's going to go elsewhere. If you go to stocks that have good dividends. Darden. Yeah, we're going to get to Darden in a bit. A great line out of the JPM desk today, Jim. Over the past 40 years, the Fed has cut rates 12 times where the S&P's been within 1% of all-time highs. And all 12 times, you're higher a year later, average return 15%. Look, we obviously weren't targeting employment. We were targeting almost entirely inflation in this 2%, and they are, the Fed is just determined to get at that level. So I think that we have to sit back and say, you know what, the Fed's working for us. The Fed isn't trying to work for us, but the Fed is working for us. Do you agree with this line that small caps tend to outperform in the first six months after a cut? They do, but I find this small cap way that hedge funds get involved, which is by an index, is foolish. That'll pick some small caps. They're actually good. And those are hard to find, Carlos. So yes, these are supposed to be working. What they'll do is buy a basket of them, big institutions, because you can't pick and choose the small cap. They're just too tiny. They would overwhelm every small cap. They would own every small cap. Meantime, you've got B of A today. So Vida Supermanian comes out talking about old-school economies, Jim, utilities, materials, industrials. She points to the reshoring effort, the biggest boom in U.S. manufacturing in over a decade, the two million jobs that alone brought in. We know this is true. I still think the strongest part of the economy is construction. Some of that is the doubling of the data centers. We think that the data center is going to go from 4% for the grid to 8%, which is going to call the grid to be rebuilt. And David, you know what I heard yesterday was apartment prices coming down. We know housing's coming down. These are all the things we need to see in order to be able to have. I'm going to use the term, I'm sure you're not used to it, soft landing. All true, obviously the 50 was more or less consensus though. I know us at the desk here, we kind of anticipated perhaps a 25 was a more likely outcome and wasn't as though it was weighted that heavily towards 50. But I did have an opportunity to talk to at least one person, that being Mark Rowan who runs a pretty big alternative asset manager, at least we call him that, still. Apollo who, you know, is in that camp guys that says, all right, I get it, but at the same time, there's an awful lot of deficit spending going on. There's a lot of spending yet to still come from all of the government programs that were signed on to, whether it's infrastructure, chips, IRA, and you go from there that really hasn't fully hit the economy, take a listen to what he had to say. It does not feel to me like we are having a traditional recession and yet we are using the tools of a traditional recession. We're going to run a $2 trillion deficit this year. So I think we're in uncharted territory and that's why I say it's an insurance policy. Well, what's an insurance policy against because you seem to be indicating in some way given your view or the house view that in fact there could be a lot of risk from lowering rates to this extent. And I think there can. And that's why I say it's a risky insurance policy. The insurance policy is to get ahead of a potential slowdown based on incoming data. And the risk is that all of this fiscal stimulus, which is very long term, which has not yet come online against the backdrop of noisy data and a noisy model, forces the government the Fed into a retreat. Very Jim, unlikely perhaps, by the way, long interview with Rowan about so many of the different larger trends that his business is the center of, namely public to private, whether it be credit or even equity as well, not private equity, but equity that is private. Look, I'm not going to go against Mark Rowan or Paula, they're too great. I would just point out that Larry Fink came on our show, the terrific CEO of Black Rockin said the only way out of this deficit is to grow our way out of the deficit. And a half point, well, you know what, maybe that's the beginning of the grow without inflation that we really want. I'm just more bullish than a lot of other people. A 50 basis point plus trying to grow out of things, Carl. It doesn't just play for time. It's actually pretty positive. Yeah. I don't know if you saw the Greg hit piece in the journal today, Jim, that the Fed has improved the odds of a soft landing significantly in the words of it. He says low inflation, low unemployment, solid economic growth, Greg writes, this is what an economy is supposed to look like. Wow. Yeah. I read the piece. I don't know, Greg, personally. The way I thought of it was kind of what's happening out here. We have an economy that is growing like me out here. It is truly trying to keep us in growth mode, but these companies that I'm dealing with, they're all trying to keep prices down for the consumer, T-Mobile yesterday, price down for the consumer, Waymo, everywhere in this city, price down for the consumer, Salesforce trying to make it so that it's agents, price down for the consumer, so tech is doing everything you can, and obviously Amazon doing everything you can, to keep prices down at the same time they're growing like bad. They are the definition of what pal wants, and then we have to deal with the fact that the individuals that are not part of the data center are not so good. One of the lead stories in the Wall Street Journal today is tech jobs have dried up and aren't coming back soon, so I think you need to delineate exactly what you're talking about when you talk about growth. Certainly, you're talking to a lot of people who are very excited about generative AI and the opportunities that that is bringing to the fore, but there's a lot of traditional tech jobs that are actually not needed anymore already, Jim, so when it comes to growth and back to the Fed and employment, it's not clear to me that that's growth. Okay, look, you're absolutely right to define things. It's what they need engineers, you don't have to, they don't need computer scientists anymore because of the way that AI is set up, but they don't have enough engineers and that's something that we have a national shortage in, that has to do with the way our education system is set up, but that is where we need people desperately, and Carl, David's right and it isn't like we need anybody else desperately because we're still trying to figure out whether AI and the agent will take people and put them in new kinds of jobs. Yeah, the piece that David mentions is pretty fascinating because it's software engineers who are both in demand if you know AI and if you don't. You're done, you're not getting a call back at all, right, you're having a very difficult time finding a job, at least assume what that a company has to eat. She wanted the engineers, she got a thousand engineers, those are the people, it's very funny because a couple of years ago you couldn't give away the engineers and you know who started David the hiring the engineers who did more hiring engineers than any company? Nvidia. You still got it, you still got it partner, you still have it. Yes, yes, yes, yes, never lost a step. Glad I got that right. I understood, but you know there is this dichotomy as the journal points out as Carl mentioned between the AI world, which I know you're getting a very heavy dose of out there for the last four days and sort of the rest of tech, so to speak, Jim. Well look, I met Pink last night, she just wanted to talk Nvidia and she wanted to talk about AI. That's not true. Pink was unbelievable and as soon as my wife saw her, my wife first into tears and had to be comforted by Pink. Yeah, David, when I, true, when I, when we talk about AI, it's almost, here's a term I hate, table stakes. And you know, even though I wanted to talk to the vice-seaver, CEO of QMobile about the fact that he said that the Apple iPhone 16 is much better, didn't understand where all these stories came out at the beginning of the week. Those stories seem like now that they are fatuous. Yeah, we're going to hear from him in the next segment, we want to get to that. Jim, well, music's already playing, but I certainly want more takeaways from the conversations you've been hearing because it's so valuable in terms of all of the different things, you know, all the different people you're getting in front of over these last four days. I am so ready for you, David. Don't, I mean, it's beyond belief. I'm going to raise a glass for you, David. You are. Oh, I know that. Got it. I got it. We got one of those. Yes. Ah, man, you are so cool. Oh, I'm so cool. Yeah. You wrote Pink Pony Club. I never mind. I did what the next, next. Jim, we're going to hear, as you said, from Teen Mobile's Chief with that bullish message to Jim about the Apple iPhone 16. Some of their cost and revenue targets, they're working AI. We will get to, Darden, as David said, there's news on Apple, PayPal, Tesla, Workday, as we hit all time high so they open, let's see in a minute. Support for this program is provided by Chevron. The anchor offshore platform is utilizing breakthrough technology to enable us to produce oil and natural gas in the U.S. Gulf of Mexico at pressures up to 20,000 psi, a new industry benchmark. 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Behavioral health solutions that also keep your projections at their best, it's possible. Pharmacy benefits that benefit your bottom line, it's possible. Complex specialty care that cares about your ROI, it's possible because we're already doing it. All while saving businesses billions, that's wonder made possible. Learn more at EverNorth.com/wonder. T-Mobile's chief, Mike Sievert, expressing some optimism about the iPhone 16 last night on Mad Money. He told Jim his company has seen stronger demand for Apple's new lineup than last year's series. Take a listen. The first week was better than last year. And so much. Not only good, but better than last year. People are buying pros, they're buying Max's, so they're buying up the food chain, and they're buying at a greater rate than last year. Now what's interesting is we may actually see that this is better than last year to a slightly greater extent because I have a feeling this cycle will be lengthened a little. You know why? Right. The AI features don't come out for a little while yet. And so that word of mouth of seeing Apple intelligence on your phone and then telling other people about it, that's actually still in front of us and will take a few weeks or longer. They didn't tell us. But this cycle could actually last a while. Jim, take that, Ming-Chi Kuo. Well, yes. Tim Over one of the biggest sellers, sometimes they could outsell Verizon, they open a lot of accounts. I think Mike was just kind of trying to figure out what almost sounded like lies. I mean, you had somebody who told you that the 16 was not doing well last weekend. I forget their name. I don't know. It was a big college day and then a big pro football day, so they may have been completely irrelevant in my mind. But thank heavens, they were because see for stands for what the numbers really are, David, can you believe the clowns on Wall Street who bit on some study of someone that no one had ever heard of until the day they gave you the numbers? Well, I don't know if that's fair. I mean, Carl just said his name, I think. Yep. I think he's been fairly widely followed, Jim, on this whole pre-order thing. You've made the point many times, I don't know, that you get so many different data points and it feels as though until we actually get the real numbers, none of them ever can be relied on whether it's out of China and what we're seeing and then this and then the channel checks. You know, who knows? That is probably the thing you can rely on. That's the thing you can rely on the most is hearing Mike Sievert. He does tend to be promotional sometime. Let's not forget. Yeah, but he had the numbers. Love him that we do. Peter, the other guy who you claim is Mr. Apple? I don't know. I mean, what does he know? I don't know. No, it's Josh. I don't know. Well, he seemed to know him very well. So what do I know? Gailor? Maybe he's in Gailor Apple. There's a lot of different Apple breeds. There are. If you go Apple picking right now, you might actually get that guy. I know. Some of them have worms, David. Meanwhile, Jim, there is this piece on the tape today about the EU and the pressure that Apple apparently will be under to open iOS two rivals or face significant fines in the story's words. Yeah, you know, obviously suboptimal for Apple. Apple has an unbelievable operating system. The idea that you, the better you make it the more you have to give it away seems wrong to me. The European, I mean, we've got like US one, Europe like 27 and these different now. These things are basically kangaroo courts. They're show trials. They're basically just saying, listen, America, you come here, we're going to take our, we're going to take our, we're going to take our pound of flash, David, our pound of flash. They do take privacy very seriously there. I think that's fair to say. By the way, Apple shares were up yesterday even prior to, I believe your interview, Jim, that was notable. I guess. And before the festival of even. You're like the print organizations who refused to acknowledge the scoop that I had because you know what? We're silly people on TV. TV will embrace your scoops more than I have. I've been dealing with the silly people on TV thing for 31 years. Yes. My own organization. Do you know how many stories I broke that then my own organization actually didn't even know what it's called. Can you break how many? Somebody else. Do you know what I've done with that? How about how many T-Mobile suddenly out of nowhere they're doing, they can do 12 million fixed wireless. You told me we'd be safe and fixed wireless. They, by the way, they keep increasing the capacity on fixed wireless. I am curious to hear what, I assume you spoke to Seaward about it because there was a time that you all know where and it still is the case. You would rather sell a subscription than a wireless subscription. So eventually you do get capacity constrained but fixed wireless is a real competitor to broadband. There's no doubt about that. Verizon has been pursuing a T-Mobile obviously was early and then yet you've got a lot of the carriers including T-Mobile deciding they also want to move into fiber. Obviously AT&T has been the leader but Verizon with a frontier acquisition and T-Mobile has made a number of smaller acquisitions as well. Well, when I asked Mike Seaward, kind of we work for Seaward, you're saying where are these 8 million to 12 million fixed wireless customers going to come from. He just had one word for me, David. He said cable. Yeah. Is that us? Yes, that would be cable town. That would be cable town. I'm not sure if you're familiar with that company. Well, it was one of those moments where I just said, okay, all right, I didn't think you can get to 12 but you know what, I have a contract and meanwhile Starlink is just revving up. I keep wondering when he puts that Starship up there and starts all the release the hundreds of satellites at one time, it's going to change the game too. So that I can climb that verse and get a clean signal. I'll take T-Mobile and a great Apple 16, you get a clean signal in the suburbs where they really do compete against cable. David, I want to pause. I want to pause. He's signing up airplane. I want to pause. It's going to be great, but I want to apologies from the people this weekend who try to take Apple down so they can cover their short. Takes it so personally. It's so personal. Take it personally. Of course I take it personally. What? What am I not to get personally? It's not personal. My dad works in B2B marketing. He came by my school for career day and said he was a big row as man. Then he told everyone how much he loved calculating his return on ad spend. My friends still laughing at me to this day. Not everyone gets B2B. 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Great note out of Mark Dow today, between the first hike by the Fed in 2022 and the first cut, the S&P was up 35 percent, which kind of throws into some confusion, this notion of don't fight the Fed. It would have been smart to fight them this time. Don't forget, you can catch us anytime anywhere. Just listen to and follow the Squawk on the street, opening bell podcast. Time now for a cross-country mad dash again. We've got an opening bell very quickly. You just can't stay away from Nike. I don't know what it is with you in that name. Well, it's not me. It's the analyst. Morning Bernstein comes out, lowers 112 to 109, but that's not the point that he changes by. I'm going to read. This is really incredible. What's happened is, is that Boeing, I'm sorry, Nike, it sounds like points, but Nike has said, namely, a two complex design process, feedback loops that were taken away and get this one. Maybe this doesn't matter if you make sneakers, but leadership not focusing on product. They do, though, see a turn in 2026, David, the wait time flies, that could be tomorrow. Good. Time goes very fast, especially when you have to be a certain age. It does. But in 2026, there's the turn. Just wait for it. Jim, wait for it. Well, I mean, or maybe someone else can accent, look, you know what? I've always felt thought it was a nice guy, so I have nothing more to say. Nice. Well, you've been right on the stock because you've been negative for some time. I pointed out yesterday, you don't tell people to short stocks, but you kind of do. Well, I just think this first thing, Jim, do you cover here? I want to see, when Mary Dylan from Footlockers says that Hoka is the number one for that new balance is the number one, then I'm going to crown the, I bet I'll say that Nike has a shot, but right now, it is just downhill, but the people, the people out in Nike land, they seem oblivious. Jim, let's get to this opening bell here and the CNBC Realtime Exchange and the big board. It's AA Mission Acquisition Board, celebrating its recent listing that has that financial institution based in Nashville holding company and we see wide a bit of green looking for some opening numbers here. Jim, it's interesting, you know, the implied move yesterday was a percent or more. We only got 30 basis points, so we are making up for some lost time yesterday. Yesterday was really weird because you had stocks, you had bag seven fly instantly, then you had the fellow traveler text, definitely semiconductors fly and soar and everything. All, every point was given up and then they started tripping down and then at the bell, it accelerated. David, who were those people who were trying so desperately to get out of stocks now that they're up? What was their game plan? Under their heads? Their silly heads? Yeah, I can't explain that to you, Jim. I don't understand those kinds of moves, especially in that sort of short period there. People are still listening to the presser and trying to understand the future direction of rates, which has got to be the key here as well. It's not just the 50 now, it's what's next. What are we going to get next year? Where is the terminal rate? The neutral rate, excuse me. Not my area of expertise, so I'll just ask the questions. I got one. Chairman Powell, were there people who descended, Chairman Powell, and why? That was asked about by four times. I was waiting for the Tallahassee Democrat, where I worked at to raise a hand and say, "Excuse me, Mr. Chairman, was there any descent? I mean, why does he have to put himself through that meat grinder?" I know you don't like the press conference, although our Steve Leastman had the first question. Yes, it was, the question that many were asking is, did something change? Did we miss something between Jackson Hole and here, or even a little before that? Well, inflation has come down pretty consistently. We're starting to get companies to take their prices down, and then not just sold at Costco and Walmart anymore. I think that makes a big difference. Carl, I think that the interaction today, we got a MasterCard survey, which I thought was masterful, frankly, and it says, "In season spending, we're going to have a special growth 3.2% year over year, 7.1% bump, online sales, and what are people buying?" This was incredible to me. Early pin, they're buying electronics, which they're supposed to grow six to seven percent over last year. When you say they're going to sell electronics, that has been a horrendous category. So MasterCard survey very, very bullish. Yeah, I was just looking at B of A's credit card data for the last couple of weeks, Jim, and the other line that stands out is the decline in spend on gasoline. You're talking 11, 12% day after day, down versus a year ago. Well, I'm so glad you mentioned that, because one of the stocks that's been going up, let's just say the price collapse, is the stock of Disney. Now I had thought that was the inconceivable that the stock could go up. It just didn't see me possible to me. David, you know I thought it was epoxy to $89.90, and really it was hostage to Mickey or Minnie wearing different clothes. But look at this thing, and then Agatha all long. Oh, no. Jim, I like that. I do see that this is the stock to buy when you think that gasoline is pizza. Oh, Disney, really? Okay. Yeah. You get more than six flags, you know? Well, there are a lot of stocks that are being bought right now, of course, with the S&P up 1.6% the NASDAQ doing even better than add-ups, up some 2.3%. As you might expect, it's across the board. Nvidia shares are up about 4%. Jim, what's the latest you've been picking up from your many conversations, both on air and off air, with many of the people who've attended Dreamforce this week, and just been you know, who you've seen in the San Francisco area? Well, I think that we can listen to what Lisa Suis to say from AMD. What she told me was, look, Nvidia is an unassailable lead, but there's room for two because there is so much business. The demand I just keep getting is more and more and more. And the big joke out here is that some people really do have Blackwell, and it's going to be Eli Mosk or Mark Zuckerberg. Because remember, last week, Jensen Long's head has become very emotional who gets his chips. I've not seen anything like this, David. It's like they're scalping him, you know what I mean? Yeah. And that's bad. He's had to deal with scalping before. But yeah, most people just say that Jensen is AI. We're waiting for others to kind of join his orb, but nobody has. That's not collapsed last night. It collapsed. It went from 15 to 13 as if it was some sort of small cap, margarine, you know, a knife through margarine. Yeah, look at that. But now it's higher. And obviously we've got an S&P, Carl, that's a new record, right? The S&P? Yeah. Yeah. This is an all-time high. And I think probably for the Dow as well, right, about 42K. David, why don't you say that? Would you like me to say we're approaching a 20% gain on the year? I think after the deployments of last year, a few would have expected as we came into this year that you'd have a potential for a two in front of your performance this year. Well, I think that we've had so many people who are negative come on. I'd like to hear from them, you know, the people who scream that we need giant rate cards for the people who felt that it wouldn't matter. Those people will be really fun to listen to because I would ask them about Airbnb. I'd ask them about cadence. I would ask about lamb research. I would ask them about KLA. I would ask them about ply materials. Fortunately, a lot of the CFOs for those companies will have to be having dinner with me. I'd wait to step even later than I did last night. Yeah, I think it was the B of A desk this morning. Jim took note of the semis in particular leading the price action this morning and questioning whether or not it's really just sheer momentum. Maybe there is now that we have this cut cycle underway, some kind of macro bedrock to the trade. Well, we'll have to tell you what macro bedrock these days has been the semi-conductor caps. Now, in fairness, I think the numbers are too hard for those companies because we have a mic run with static DRAM. We obviously have Intel with not a lot of buying. Hell, nice. David Packelsner doesn't want to sell mobile eye at the bottom. How about that? And yesterday I was in a Waymo with five people and Waymo was telling us what to do. I respected Waymo. Always polite the whole time. Yeah, you took another unassisted ride, so to speak. I loved it. You can climb in the trunk, but they have cameras and the trunk's got to be careful. I'm glad you mentioned Autonomous Jim. UBS today takes a crack at the Tesla Robo Taxi Day. Their argument is that it's ironic they're holding it on the Warner lot and not in the real world because they're not working with California DMV. It's actually Waymo, they argue, who could do a demo in real life L.A. if they wanted. I've got to tell you, this Jaguar Waymo's all over the place. My wife tried to hail one, not realizing that that's not the process. It's on your phone. It's very easy. I found it much better at late at night than any driver. I recommend Waymo to my friends. Good segue, guys, into Darden. Why? Because they actually also announced a partnership with Uber, both earnings as well. The earnings, Jim, did not look on the face of them to be particularly strong. No, it was like Darden's stock price is, although it's come off a little bit from where it was before the market began. You can see, we had a slowdown in July. They do announce, as I've just mentioned, this partnership with Uber, it'll begin with pilot at select locations, drivers will pick up orders, curbside, same everyday value, menu price for dining, and pick up delivery. Darden will keep the data, apparently. Right now. Right now. May, I think all 900 U.S. locations will have it. I look, the yield's 3.3. That's terrific. David, it's a reverse head and shoulders, because I know you care about the technicals. The stock is only up two for the year. A lot of the restaurant changes are doing much better. As the months went on, things got better, and there's also a survey today called, I thought, it was very interesting, where it turns out that one of the ingrained habits of COVID is the very expensive, have food come to your house, and somehow people got, became integral to their lifestyle, even though it's very expensive, and you and I both know, when you order a cup of coffee and a Danish, it costs a fortune. Yeah, those fees. Yes. Those fees. They add up. Almost like Ticketmaster. But not quite. Oh, well. By the way, like nature, one of the governments, the government's case, it was interesting. They put their memorandum out on that, but, and those fees. Hey, Jim. Yeah. The top thing at the open here is the kind of market I think you would be suspicious of. Yeah. Well, actually, you shouldn't have that beginning. That's just like 10, you know, 10 to one down, and you got to buy 10 to one high. You got to do some selling. Jeff Marks and I have been huddling this morning about doing some selling, and that's exactly what we're doing. The only sector lower is utilities, Wells cuts to neutral there, Jim, as we watched the XLU. What happened to the offensive element of the utilities playbook, the data center energy creation thing? Well, look, I think that if you want to do that today, we always get one every day. Today's wolves stay with Qantas services. That's going to be able to build a lot of these. Obviously, verdive is very important. I look, the Chapel Trust owns. We own a lot in the sector that they're well, okay. So I'm kind of not to figure out how to just give these away, because I know that people in the club are not crazy, but Eaton is just an amazing stock for this. And by the way, this is very much of a Midwest powerhouse move. You get companies like Dover that people have forgotten about, and they're all involved with the heating and cooling, because these things just, they burn so hot, Carl. And Jensen Wong, they said over and over to me that they have been able to reduce the heat while increasing the speed, but it is one of the major challenges, is how to make these things not hot, and right now it's thought to be water cooling is the best. Yeah, there has been some criticism of the sector at large benefiting from low natural gas prices, gym and subsidies, and yet increasing their rates year after year. And we can see how that gets reflected in the market value. Right, and it's really just for Nova. I mean, almost everybody got out of this Jeep, for Nova, almost everyone got out of the building, new Mack Gas plans, because people felt Mack Gas was going to be closed down, fade away, Democrats wouldn't go for it. But what the Democrats did was they put a pause on exporting it, but right now there's so much more natural gas that that's why I'd propose to Tom Jordan, the CEO of Kotara, whether he would actually sell a company, David, to a natural gas company that basically supplies data centers. And now you poo-pooned at the time, I kept trying to push it, it was almost like my New Mexican obsession with building a theme park, but I'm not backing away that it sure would be smart for one of these tech titans to buy a company like Kotara. Yeah, that's a little far down the line, that's why. I mean, I understand why, and in fact, we are already seeing deals where they're taking all the capacity from a particular electric generation facility, or even considering building their own to power certain data centers. But you're going down the line to the actual fuel that's provided to run the turbines. I mean, I don't, yeah, really, they want to be in a natural gas business. I don't want it to go. I mean, natural gas is the lowest, since this whole era of re-shoring has occurred. You lock in, you lock in very, very good prices if you do it. Now, here's why they won't do it, because they're way out of, they're watching and they're just saying, "We're not getting in that business, that business is going to go away." So what I think they should do is talk to GE Vernova and realize that it's not going away anytime soon. We can't replace, you can't just make solar be the power, sometimes it's not sunny out. So that's why you need a backup engine perhaps from Caterpillar, maybe even sometimes it's not windy as well, but, you know, nuclear still does take a long time to build. Even the smaller reactors, it's not like they happen overnight. No, and a lot of people just talk about reopening, re-certifying old nuclear power plants, which I'm sure you'd be willing to live next to. Jim, is there a particular sector that you and or you think investors should be focused on given the declining rate environment we now find ourselves in? Well, look, I mean, you're not supposed to, I think you're supposed to buy first, buy told brothers, you're supposed to buy Lenoir, they're going to report, you buy DR Horton, and then the next level, you buy the appliances, you go into, we don't for the trust, we own Stanley Black and Decker, that's really the one that is featured all morning. You can go by lumber, that's warehouser, these are all the, the must, the must buys. And if you wanted something a little further, if we could develop a lot of new housing projects, you buy Vulcan materials, Martin Marietta materials, and you can buy waste management, they always do well at this point in the cycle. Yeah, our carrier, fresh 2024 high, Jim, up better than 2%. I see, you've been reinvented it, he's really, and by the way, Dave, regulatory with train technologies, if you go into H, that's another place where we don't have enough people, is HVAC. I think that that's because people think HVAC's not very sexy. But if you go into HVAC in a younger person, what you're really trying to do is cut down greenhouse gas. That's not a bad goal. PayPal, David, highs of the year, going back to the spring of '23, this new partnership with Amazon, where they're going to integrate PayPal into buy-on prime. The stock has actually started to come alive, as you point out, Alex Chris, obviously still a relatively new CEO with the turnaround plan there, and it certainly seems to, seems to be working a bit of late-to-year-point growth. Thank you, Jim, for remembering that. Of course, he'd be the only person who did remember that, but yes, that's true. No, what about us? What about us? What about us? What about us? What about us? What about us? What about us? What about us? What about us? What about us? What about us? What about us? What about us? What about us? What about us? What about us? What about us? You went another good one that can't be stopped. Who is a good person to lend to? And it tended to be a lot of people who couldn't get a back loan normally. So, my hat's off to Max Leifgen, because he's done a remarkable job since that last quarter. Yeah, that was up five pre-market on Mizzou home today, says that the Fed cuts could bring 30% upside, Jim, to some of these consensus volumes. And some of these stocks are so heavily shorted, because the hedge funds kind of believe it would be 25, and there'd be this big sell-off like you had yesterday, actually, between three and four. Well, that sell-off seems to have just vanished. And now, I know the tender one is worrisome, but we do have a lot of stocks that are up nicely and could give up some of that gain. I don't think they can give up all of that gain, because this thing is too powerful. The one to watch is Nvidia. That was up three and a half. Now, it's up five. There was nothing wrong with Nvidia, but except for the fact that the long guys have been out for it, because people think that Jensen can't possibly maintain the strength. I come back to Apple and T-Mobile, David. I know the traditional media doesn't like to cover what we do, but the Mike Seaver conversation was seminal and put in, just basically said, "All those little surveys you heard, no. I'm going with Seaver. Seaver one, little minis, zero." Well, Apple shares are up almost 3%, and it's outpacing sort of some of mega-cap tech overall. You point out Nvidia shares are up as much, or even more than that, but there's T-Mobile actually. One point at 18, T-Shares are quite weak, as is Verizon, Jim, this morning. T-Mobile is up a bit. They didn't put out some other numbers yesterday as well at T-Mobile. Did they not? Yes, they did. They sort of talked about 25 guidance up 5% year over year. I think the consensus was about 6.7%, so the stock, I don't know if it sold off a bit yesterday, I believe it did. I think Mike was being conservative. I think he spent most of the time talking about remuneration. If you're a shareholder, more buyback, a little bit of a dividend increase, but he wasn't cocky. He knew the Verizon ATC are better. He's focused on taking share from another group of people. It rhymes with Mabel. Work got it. Thank you. One story, of course, that we haven't touched on is what happened to yields today. We do it for the 10-year, getting back to three and three quarters. That's going to be the highest since about September 9th. As we get a little more data today, we got claims, of course, of 219, Philly Fed back to expansion and coming up in about 10 minutes or so, existing homes and LEI, so stay with us. Well, we opened about 5700 S&P, gave a little bit back here, but still a 73-point gain this morning. Dow's also off the opening high up 380. But for the year to date, S&P is closing in on a 20% gain. Of course, after last year's 24% gain, we'll get stop trading with Jim in a minute. It's time for Jim and stop trading. Well, I didn't think I'd ever see this, Carl. I decided to do it. I did a team's basically calling and a very big program for CrowdStrike. Now, these were supposed to be mortal enemies. We know that there had been a lot of, let's say, derision by George Kurtz about how Microsoft's doing in general cyber. This is just -- I said it was at the bottom at $235. I'm going to reiterate that. I think of the hangover from the outage is over 95% of the customer's cap. I'm going to have George Kurtz on tonight to talk about this remarkable, remarkable detente. It's incredible to me. That is interesting. Haven't seen it on the Delta side, though? No. Delta, they didn't deal to, I mean, George Kurtz tried to speak to the CEO, and that didn't happen. That's the only customer so far that has really made a big to-do of it. I think that actually cuts badly for Delta and well for CrowdStrike. Yeah. How about tonight, Jim? Well, I had to get George Kurtz on because I think this is pretty incredible. I think that a lot of people love CrowdStrike, so he's going to come on. He'll come in from Vegas. And then I have a company called Databricks. They're private, but it's one, the company that everybody's most worried about because they can really help you keep your data. Keep your data is everything and the T-Mobile, that was numbers for Apple, and what you're going to see from Salesforce with Agentforce, it's not going to end. It's just beginning. These are very important stocks. Right. You'll have Lenard and FedEx to kick around. Absolutely. I'm loving the pictures of you and Lisa at the concert. I've got one of Regina, my executive producer, stepping out of the Waymo trunk because Waymo discovered that she was in the trunk. We didn't have enough seats. We didn't think Waymo knew anything. Waymo knew anything. Waymo knew anything. Whatever it takes. Regina, whatever it takes. So run the trunk. Yes, when you see her get out of the Waymo trunk, you'll realize it's Regina Yogan Zero Ruth Poor at 1. Jim, amazing work continuing. Thank you. Look forward to tonight. Oh, we're just getting started. Bad money. 6 p.m. Eastern time. Down on 436 S&P, almost to 5700 on this day of all-time highs following the Fed cut. Don't go away. 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. 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Carl Quintanilla, Jim Cramer and David Faber covered all of the bases regarding Thursday's global stock market rally, sparked by the Fed's 50 basis point rate cut. The Dow and S&P hit record highs, while tech fueled Nasdaq's more than 2% surge. The anchors explored which stocks and sectors are most likely to sustain upward momentum in light of the Fed's easing. Also in focus: T-Mobile CEO Mike Sievert's bullish message to Cramer about the iPhone 16, the EU's latest warning to Apple, a sneak peek at David's "CNBC Leaders" Thursday night special with Apollo Global CEO Marc Rowan, Darden jumps despite an earnings miss, UBS' note on Tesla's robotaxi.
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