With the Dow and S&P 500 looking to snap 3-day losing streaks after a record run-up for stocks, Carl Quintanilla and Jim Cramer engaged in a wide-ranging discussion about a question posed in the latest Delivering Alpha survey: Has the market run too far, too fast? Also in focus: Commerce and Treasury Departments' new recommendations on regulating AI, Apple's Q1 stock slump and J.P. Morgan's note on China iPhone sales, China's President Xi meets with U.S. CEOs, meme stocks back in the spotlight as Trump Media surges again and GameStop tumbles, Mark Zuckerberg and Jensen Huang's "jersey swap."
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of movers in pharma autos retail and media and don't forget Fed Governor Waller after the bill tonight our robot begins with stocks looking to bounce after that late-day decline for the S&P in Nasdaq yesterday China courting US business leaders president she telling the CEOs of Chubb blackstone Qualcomm and others that China's economy has not piqued and its growth prospects remain bright and apples not so good year JPM pointing to some rising concerns of an iPhone slowdown in China let's begin though with the markets the delivering alpha investor survey of leading institutional investors strategists and CNBC contributors focuses on their outlooks and strategies for Q2 and beyond 61% believe the market has run too far too fast I haven't really heard you say that yet Jim no I look I do care about speculation and we've had a couple of speculative stocks dislike them or like him a President Trump's stock is a little confusing to people confusing speculative today you said it's overvalued exactly I can't find a way to value it Reddit that got that was a little too much reminiscent of GameStop which did not have a good quarter but I'm going for broadening out what I'm seeing is that it's not too far too fast it's now the banks I mean first is we see some Dowager banks because the stocks have moved too much it's the industrials the rails are vulnerable because we'll see from CSX because because they move so much I like health care has been extraordinary so look at the way Merck burst out on what could be a actually a boutique route but very very important so I don't see it like that I think that what you're seeing is the mega caps or donors and donors to the point and we'll talk about Apple that says to me there wasn't move too far too fast but the megas are distributed and they're distributing right to the rest of the market which I regard very bullish yeah your point on Apple is well understood we'll get to some of the negative commentary on Tesla today your your your pap will be a big point of discussion for your club meeting today yes you know look I'm I'm very concerned that people don't understand the trajectory of an apple it has something good and then it has the decline the decline can be presuppitous and then there's something good I mean if they came out and said look Indian Brazil are going to be very very strong they can offset the 500,000 phones that they didn't sell or a million phones then I think people will get very excited we know that some of the main caps have some good news I see Salesforce making an enterprise not not a true making cap enterprise move that I think is very very important I like what Amazon's doing but I am going to spell speak to Jeff Marx my partner and say if Google doesn't get that announcement with apple that drove the stock up big you got to get out and you have to get out because people are going to chat QPT and quad three to do what used to be elementary search I don't use I've cut the number of Google searches in half now it doesn't that's anecdotal but it's just so much easier to go to chat right Claude now you've been pretty clear in this week at least Claude is really you're looking for excuses to get out but if you Google Claude about me it's hilarious it's hilarious and I'm like wow they nailed me you can Google I mean Claude's fun a lot of younger people just get a kick out of the way Claude responds to things you don't get a kick out of the way Google search you just have to go through a lot of ads and Google is not an ascendance here it's interesting Axios has a report today and they talk about the trough of disillusionment in AI meaning every technology goes through this period where there's the big promise then the early sort of reality gut check and some companies are finding there aren't a lot of applications they can roll out to consumer clients yet and I think that one of the real missing piece of the puzzle about what Jensen mom was talking about was you need or the room was filled with implementers you can't call us you have to go to service now to get us fixed you have to go to Dell if you want to lose it and that process of having an intermediary that takes much longer than people realize if you could just call Jensen mom and say listen I need like by the way like like meta could do say listen I need 350,000 of H 100 right they can do it Amazon web services gets the full suite and there's a terrific video of Adam Slipsky runs Amazon web services with this is actually from last fall and the relationship with NVIDIA but those are the only two that you just you call them and say look we'll take everything right so broader than AI Goldman for example piece today about pension rebalancing at the end of the quarter which they argue would be the biggest rebalance since June of last year those are always just I think they're very hard to gain we really don't know whoever does last last yesterday uh when I thought there was a wave of people who realized about this that decline between 30-34 was precipitous and I thought it might be owing to this rebalancing already right it's it's I I didn't like yesterday at all because we had big reversals day one of the stocks that we follow we own for the trust that we're going to review today is eaten and the stock was uh the the stock was up for up six look it was up at one point it was up almost six points and then it closed barely up and that kind of reversal people call an island reversal because it opened up very high so it goes to the 316 that comes back with 312 that is historic you've been something it's just be careful and I think eaten is a very very good company. To your point about broadening out though two calls today one is fun strat Tom Lee the best idea for 24 small caps yes I like that 50% upside well you said they're down so big that's a natural and then Beemo today Belsky says there's trends emerging in March that maybe this underperformance but by the way is the worst in 20 years right uh maybe coming to an end well I do think that they don't have the coverage anymore that they used to uh I was dealing with a company the other day and I said like look you need more coverage I mean just don't get a lot of coverage you've been on this for years yes and now I think that the the sell side just doesn't have enough analysts they don't make enough money but I think that when you look at the small to when you look at a company's value to 700 million I don't even like to talk about it anymore on on mad because I think it would move to a billion there's just such excitement about if you can find a small to medium-sized run with it but I I they're worrisome from my point of view because of the people who watch the show and there's a lot of people that come in they buy one of us but those are undervalued versus the big guys so you do agree I bet I like the call unfairly punished as Belsky said left for dead if you look at sort of ownership trends over over say a couple of decades they have no sponsorship and they don't respond so what happens is you'll look them up you'll say okay let's see how what the earnings forecasts are and there won't be anything about them so suddenly you find yourself on your own in the big institutions historically don't want to be they want to rely on a need them call or a call and call someone who's not not bulge bracket right we don't have enough information about these companies to make an informed decision so your your preference then would be to stay within the S&P yes but beyond mag 7 and look for broadening in health care banks industrial yes I mean in the beginning of my conference call day this at noon for the club I talk about how people when I meet them they just want new names but they want new small names hoping to find yes indeed the next NVIDIA and they don't want to hear that it's service now as good as it serves now it is they want something that no one's ever heard of like NVIDIA would no one ever heard of and you know I've got I got two not not chopped dogs I've got Riga and Tony and they're ripe for new names I just can't find them well you mentioned Merck which is going to open up by think five and you have them on tonight right yeah Rob Davis is just they made an acquisition the acquisition paid off Rob Davis has quietly been building a tremendous portfolio I'm gonna hear about what Prometheus is doing which is an ultra the it has to apply this and we were waiting to hear something from there Rob has energized that company in an extraordinary way and he's a really sensational executive so we're spending hope to spend a lot of time yeah there's there's Merck today there's Moderna rolling new some vaccines to find a stage they've got a flu vaccine they got the respiratory vaccine that I thought was very very positive now Moderna's a stock that there's a health care stock that's been left for dead you know all the new biotechs other than an alphabet called H Wayne right I can't find any about them but when I mentioned that they're good on air then the next day they add you know 20 percent so I can't play that role that's not my job but I do think that when you see a company that is a smaller cap you know you'll look at it and say wow maybe I can be in that stock and not the one let me give you an example um I would say you want to be in potato chips because you see that Lays is doing better why are you going to OTS? OTS is a two-billion dollar company now if you could find something that's even smaller it would be even more exciting yeah we're gonna get to some some package goods big investor day at KMB today exactly in the meantime though some news out of commerce and treasury with AI risks in focus are Megan Cassella's in DC with details this morning hey Megan hey Carl so commerce and treasury departments are both out with new recommendations this morning on how best to regulate AI across the private sector treasury's report is focused on the financial sector specifically and it outlines steps for firms to address risks they say this is based on interviews they held with 42 firms in finance and technology and they highlighted concerns specifically over sophisticated phishing and on AI's ability to imitate voice and video they say that for example could fool a bank into thinking it was talking with a real customer now in this 50 page report treasury also says that some firms reported concerns with current risk management frameworks saying they may not be adequate to cover emerging AI technologies such as generative AI and they had concerns that firms may be moving too slowly on this now both agencies are recommending better disclosures on AI systems that would detail the training that went into them for example they're calling this a nutrition label for AI tools they would also detail how a system is performing and what it's best used for now commerce is also calling for some regulation here including some that would require audits of high-risk AI systems this they compare to our financial system and the audits we have in place there we're also calling for liability rules including on who would be at fault if an AI system were to cause harm now Carl both agencies acknowledge the benefits of AI and they want to help AI realize its promise they say through these rules for now this is not binding although we do expect to see some mandatory guidance from the Biden administration on this maybe as soon as later this week Carl it's a fascinating Megan and definitely hits very close to home Megan Cassella in DC what do you think Jim it's after being out there last week with Jensen Wong and his team we need this very badly uh some companies predictably like in Amazon Web Services have done unbelievable job on this but when you listen to what in-thropic now that's four billion owned by four billion Amazon two billion by Google there's tremendous hallucinogens hallucination right and they're fooling people all the time and so you really do want to get a single source of truth about this by the way everyone who's been getting calls on Medicare and something that they know about you which is what I got a call on that's the hack the hack has been distributed and it's something the first time I've ever felt it I got five calls last week of different Medicare providers who knew everything about me and this hack as as Nikesh or Laura told me from Palo Alto maybe the worst hack ever oh my gosh um they know everything about it everything are you convinced or are confident that regulators can be mindful and yet and yet not restrictive on the innovation no I'm not um but I do think that what tends to happen is like what happened the first one of these interstate Commerce Commission if you go back to the to the 1800 where they say okay guys here's the guidelines you figure it out and if anybody's going to figure out them what will happen is Amazon will sit the standard because they've thought more about this than anybody so it's they have to get rid of the bad actors and maybe the best way to do it is to self-regulate because they don't really know what to do and what you'll do is you'll go to Andy Jassy and tell us what do you think's the right thing to do but we need it there there were been some very bad hacks within the federal government in the last in the last four weeks where they need to figure out who's building the actual learning part uh which is that they can they can literally get into the learning part and convince these machines to come up with things that could hurt you so that's very very warranted good report by her well one thing that's increasingly clear is that the innovations in the hands of a select few this picture of Mark Zuckerberg I know I've tried to I've been trying to get a hold of him to go through this because this is my piece uh when I got back my first piece was you got to get it right with Jensen and Jensen and Mark have a very very good relationship which isn't talked about when I first talked to Jensen about Mark it was I would say you didn't really know but they've gotten together and I I think Jensen by the way has been incredibly positive for some more Jensen is not a warrior he always says he comes in peace and really doesn't want to help you if you don't yeah so I think it's very good by Mark uh and uh you got to get with Jensen but what was scary about this no leather jacket of Jensen which made me think it might have been some sort of adobe photoshop where's the leather jacket hey my wife says it says Tom Ford jacket costs a fortune bill can't he really yeah speaking of adobe we'll uh talk about the adobe summit this week nice call out amelias today oh yes that's been righteous again doing a good job don't be fights back when we come back what's ahead for apple as well after what's better rough quarter for the stock will be a big topic for Jim's investing club meeting at noon eastern today futures do remain positive daloxed open up almost 200 squawk on the street continues in a moment how do you land your dream job it starts by acing the interview go to cmbc make it dot com slash courses to register now and learn exactly what hiring managers are looking for with cmbc make its new career boosting online course where experts share their secrets for a dynamic resume coming across with confidence what to wear and more for a limited time say 50 percent with our introductory offer register now at cmbc make it dot com slash courses apple announcing its annual worldwide developers conference set to begin june 10 the watch will be on to see if the company unveils its ai strategy along with some new products and as we get to the end of q one shares of apple are down double digits here today jim we mentioned this jpm note today looking at the china sales it does raise some concerns don't know that about it china's a very big market and they didn't they did say it would be soft this quarter but i think the softness the cadence of the softness is very bad march very bad so i want everyone to be warned look i still say own it don't trade it but obviously we want to see this quarter up for the developers conference i think the attention is going to be for the vision pro because that's where the writers are going to come that's all new i know that chance and long once very much is a video to be able to work closely on the business business aspects of the vision pro which has not been a focus at all of that so i think that the you have down on be down on the phones in china and then up when we get to the developers comes and vision pro because vision pro frankly uh if they're just going to make it into a something that's one on airplane that's not gonna that's not gonna work and so we really really really want to see big companies writing on the vision pro and the number one to write will be a video it's it's pretty amazing when you at the same time are having to develop a new product category handle the situation in china tim cook this this week and then this journal piece about phil shiller basically looking at how they're going to defend the wall garden not against regulators you know look i i think that the long lives are out for them everywhere i've gone over that justice department suit which you know i think is fatuous because it's already a lot of the thing they made a lot of mistakes marco are only made a lot of mistakes these are turning generally united states which you do not expect them to make mistakes it was almost as if it was a rush job and a passage of things that really don't amount to anything serious by blocking up a super app which they're not even doing and uh making it so that if you ducks you'd send something a message to to android it's a great bubble yeah the green that that was i mean please and then at one point someone said apple when apple complained uh it'll go tell it go tell your mother to switch that but there's a cavalier notion that i don't i don't see to be the case at all i think that they're very humble but the government wants them everybody wants them why that makes me like it must be doing something right um yeah it's like it's a long road when when we start down these things when we come back craymers madash we'll count down to the opening bell take another look here at the pre-market it's still a slew of corporate names we haven't yet gotten to including robin hood uh kmb there's some news on the regional banks and Boeing in a moment how do you land your dream job it starts by acing the interview learn exactly what hiring managers are looking for with cnbc make it's new career boosting online course get the limited time offer register now at cnbc make it dot com slash courses framers madash as we count down to the opening bell a piece by ubs today little counter grained there's a lot of people feel that disney which by the way is the top 10 performer so far this year in the sb is largely because of pelts i think the pelts has played a major role this is the proxy fight but this piece by ubs says sources of potential upside within the disney model including becoming an earnings compounder of course talking about the parks being good dtc the direct consumer they think it's ramping a good margins they expected to be profitable soon new price target 140 so this is a piece which just says don't fret if i this is the subtext if pelts doesn't get on there's something very good here now i think a lot of this including the 7.5 billion in cost that they want to take out versus the 5.5 that they had not that long ago is in respect to the fact that listen we we hear the footsteps we don't want pelts in the board but i would say that this piece says return to greatness uh in the same way that pelts says return to greatness but but going a different way so you you you prescribe this to nelson and not to things that are working within the company uh they the company will not like me to say this but i think that nelson has concentrated the minds of the board and the ceo bob iyer uh it is uh it's an impressive rant it does say how much they don't want uh pelts on the board to some degree but you know what look there are things that are happening but i think they're happening faster than we thought and that is what i say pelts was it is an accelerant i don't know whether he makes the board or not but he has certainly been a lot behind a rally that i think the company would say had nothing to do with him and i'm i'm taking issue with that interesting uh um at ubs was a 120 they go to 140 as you said on monday barkleys went from 95 to 135 people are buying people are buying into it now what happened last time is when pelts going to the board he came he called us and said listen he's done stock went from 115 to 80 so that a lot of people feel like well if he leaves now is the pressure is going to go in and like they'll lose their uh their urge uh i am concerned about that uh i'm concerned about it because when you're they if you're taking up 2 billion more in cat and cost maybe do that slowly uh if you're trying to get a transition going maybe you do that more slowly so i think that this is a mixed blessing again i think the company would like to say pelts has nothing to do with the Kramer go away but i did read jim storage piece this weekend and i did not feel in the new york times yeah that pelts has nothing to do it yeah uh good piece and THR today as well about iger's so-called invincibility era being over yeah it's coming down to the wire though we'll get more on disney in a minute opening bell uh in less than five minutes and don't forget you can catch us anytime anywhere just listen to and follow the squawk on the street opening bell podcast truth social parent trump media extending its gains from yesterday's public debut following the company's spack merger in a volatile session the stock jumped by as much as 59 before closing up 16 percent i think it was yardenny last night jim who said you have to love the stock market no matter what you think of dj t well i think the thing is interesting is because if you want trump to have more money than democrats for the presidential election take the stock card it's a cheaper way to get it kind of get around the election rules but it is brilliant i mean it's legal so you take it up maybe they end the lock up because the board is controlled uh that allows him to pick money it's a brilliant way for a rich person around the president well watch we'll talk about whether the stock returns to fundamental analysis in the near term but for now it's something else you think i i you know there are some people who call me jim he slams last last i it did not have the revenues but it's a campaign the company is a campaign for silver let's get the opening bell and it's cnbc real time exchange and the big board it's barquoise and the wmba's new york liberties celebrating a multi-year partnership at the nazdak it's black hawk acquisition a spack celebrating its IPO yeah and the spats you know leave me cold they always have a very nice rosy hue at the beginning uh and then they let you down no there was a spack that i was looking at when i was out this is one apple paul this wall that we talked about spongan getting images mentioned several times by jensen wong you feed getting images into the brand new uh black wall and it remembers it so that if you wanted to say at some let's say a an orgy hepper beautiful image it will know it if you if you feed a lot of getting images into it oh my gosh and i people what they're doing is they're feeding a lot of video into it so i ask the change bomb be fed into it that will happen all bonds you can come back and you can say listen tell me what craymers like versus bond it but you really wouldn't want to do that right it's actually i mean it's a it's a policy group forecast but bloomberg has a piece today on the number of uk workers who might be displaced by ai eight million over the long term i don't know about that uh i service now does some great work on this and they think the productivity boost is going to be so terrific that more people can be hired so i i think the displacement uh is overdone i think the productivity is underdone so i think that that's a we that that's not what is in sync with what i heard last week i i don't think michael dell would tell you if you were to lose jobs i chance him by the way of course just saying listen the number of job vulnerable will be increased dramatically it kind of reminds me of what happened when we had uh right before the civil war when they used to make shoes by seamstress and then suddenly they make shoes by machine and that frees up a huge number of people and cook and creates more machines this is something you have to think about as the classic industrial revolution that created more jobs not took them out it's hard to find an innovation that resulted in less work yeah um speaking of um productivity jim it's going to be necessary to offset concerns about inflation JP morgan does have a take on the port in baltimore yes unlikely a major factor for macaron we're already seen uh rerouting to the west coast port of virginia is going to take up some of this slack a lot of cars come in through uh by land but i don't know i don't know i'm nor from southern tonight though i don't think they'll say that it's really that additive and for yesterday said uh john lores said it will hurt uh i think that there could be some more term negative consequences and and i want to be sure what's brought in and what that does to slow down cars and brought in the parts and of course our exports uh coal uh good question so i'm not so sure that it's something it can be easily dismissed uh yeah they're talking about maybe two and a half million uh tons of coal getting displaced um there's also the concern about uh well the NTSB now has the recorder a farm equipment marches peak period for import of farm equipment because of the planning season i just this one worries me and i think by the way that uh css will css was making a really big comeback and they've got some terrific uh auto exposure and great coal exposure now remember uh that you talk about global warming uh china india just building coal plants incredibly fast and it's very hard to get people don't realize how hard it is because of unions because of how people are employed yeah there's a thing more than more than two million people are employed in making coal in china you don't want to switch that rapidly if you're uh if you're china so i i don't i'm not as assured that it won't hurt the quarters i think it's surprising to css which is a company i like very much it really won't match it doesn't take a pause here yeah uh by the way speaking to this carnival is the worst opener on the s&p did have some guidance out but say that it doesn't include the impact jim of the port this rough yeah yeah that is is unclear obviously not on the conference call uh but royal has been such a winner here there's no need to go down the food change just keep buying royal it's funny you know when you read the disney apologist will say and don't forget disney ships well i mean royals in the ship this is during the travel business that's where you want to go i am surprised at carnival uh oil is interesting today jim uh some of these inventory numbers have been a little bearish although retail gasoline triple-a above 350 for the first time this year you know marathon petroleum is one top five s&p performer and they're the largest refiner they have 13 refiners 12 states they do almost three million gals up two million about a day that is the way if you think that that that this move is too great you should take profits in marathon p uh and and thoughts about directions on on on on wta well i just think it's had such a big run that this is probably the level where our producers and i'm talking about the big time producers start opening up this big it i i think it's not well known how uh the producers have really throttled back and so this is something to watch uh but it's the big guys is pioneer for just might have been that's you know that's an exon now about to watch what oxygen does right um tesla a lot of commentary today jim next big piece in the times about the company's stickiness in china and and what what that means politically uh but mostly it's it's things like redburn saying that the possibility of negative growth on deliveries is increasingly likely yeah and city goes from uh 473 thousand deliveries down to 429 000 deliveries but i will report to you that in the last five days of negative articles and pieces about tesla the stock is not going down that's why my thesis is it it is bottoming here uh and i do think that it will surprise people the last four weeks of uh stevesher's herst regime when they were selling uh tesla's the price went up let's watch that use car prices went higher from where they first announced the plan to see yeah bear today extends what they're calling a bearish fresh pick on tesla but you're right i mean stock has to be as hard to suppress it below 170 yep this is a level where people really do come in and buy it i know that there's some people worried about eb charging clean sparse going up i look i think that this is a level where you won't get hurt if you buy tesla i think that tesla has the ability to be able to turn itself around they can lower price they can take share and i don't think anyone thinks that evs are going away i think that it's just we've got to slow around you look up a fort forward very committed to evs but they also have tremendous ice uh tremendous hybrid and anything it's a mix that takes puts more hybrids out and sells for ev meaning you have to create for ev is bullish for forward but they came out again yesterday and talked about this port situation i don't think anyone's going to come out today call and say you know what we got to take advantage of the port situation this is loss of life and we're watching the videos and we can't believe it in real time loss of life so this is not a buying opportunity for a port yeah it has turned up from a rescue in the recovery operation divers were in the water around 6 a.m. today and we're thinking of the people in baltimore honestly ton of news and retail jam h&m was up 14 pre-market on this on these earnings goose cutting 17 percent of corporate and goose has been just a house of pain since it basically since it started uh h&m you know gigantic the fact goose isn't down maybe that again there's some declines that are so precipitous that when they uh when numbers are cut they finally people come up say maybe this isn't the time retail's been very strong i highlighted last night William Sonoma amazing dicks just an incredible story i mean even though that night east down William Sonoma furniture's down i mean these are gap stores obviously and you'll have our itch to kick around tonight when we know that we get color out of those guys oh my i mean but some guys are they just charged much i guess i don't know i happen to i happen to think that this is the right level to do our age too uh look furniture's making big comeback we're really starting we had a big up for covid and precipitous decline and now it's making a comeback as we buy new furniture and by the way i got this from of all the azim the decking company yes which saw a big spurt in sales as people are this is the rehab and renovate trade it's been a good one it's what's been driving Home Depot it's what's been driving Lowe's i did not agree with the down weight of Lowe's that we got uh from Davidson say saying this Ellison's already done a good job Marvin Ellison has not already done a good job he's going to crush it and by the way in gardening season i have i'm 50-50 Lowe's and i always send Marvin pictures because the Lowe's has much have really done a giant job in garden to take share back from home there's a couple nice Lowe's and you're that far from you like it as for GME Jim you mentioned the action in the name down down about 13 at the open here well it was down 20 last night at one point and there are some incredibly negative notes wed was says it's demise is coming we see that we're demise uh you know that gives you pause it was bad miss 29 was the look looking for 22 is what they got the collectibles which have been the savior are down hardly down 25 some rules about board investing that we're not clear about Ryan Cohen so i don't want to go into them no conference call they have no conference this is a situation with the best company in america is no conference call Berkshire Hathaway and arguably the worst game stop everybody else between yeah it's been a couple years since they called the shorts dumb stormtroopers yeah but stocks weigh down from those yeah well you know in the end you you got to have something that can't be downloaded online and they don't they've never really been able to reinvent themselves I look the short was always a great idea but they ganged up on the short and now let's see i mean reddit you know look you gotta hand it to them we gotta hand it to our friends at Morgan Stanley and that's because they came home gorman yesterday and wool well that was like wow i wish i always had that relationship but read in his down today which is actually strangely a good son because it can't keep going up it's a you don't want that to go up and up on the same news over and over again that would be a sign that the wall street bets people are yes are playing have it yes fully knowing the wall street bets is trying to wreck wreck my reputation for four years now and that's why i stopped following them i only heard second hand but it's usually pretty hard right um consistency is always going to be consistent 300 point rise here on the down at the open we didn't mention the uh wells target increase at GE which they go to 200 i think that first of all larry colt is there to stay can we stop those articles please second gross margin expansion of 300 to 500 basis points after they spin off vernova but by bernova is very interesting because you look at constellation energy and that stock's been the top 10 performance top two performer uh and they do uh nuclear and they do wind and solar so i think both are going to do very well uh larry colt is a genius we all know that and he's come through in flying colors it's become the go to aviation name given the problems with bowing right which never seemed to end um you're right about that uh yesterday boat Moody's puts them on watch for a potential downgrade and there we had calhoun saying they have to buy spirit to get the whole get a hold of the fuselage uh bowing remains on my troubled list i don't think it should have gone up uh when they announce the dave is uh is stepping down there you need to go up on orders you need to go up on cost down you don't need to go up on calhoun stepping down that is not that's good for the regulators they want to see a whole new group but what we need to see is is earnings and i don't see earnings uh speaking of the downgrades smp uh cuts five us banks jim on c re exposure including first commonwealth mnt sinovus there are some that have too much i would point out a note where a lot of people felt that wells fargo had exposure no they have very little exposures charlie sharp and there's a downgrade second downgrade of wells fargo and of course second that's at the same time raising numbers so give me a break i don't think those downgrades really matter i think wells is the one to watch because they do well at bank american they do very well if it's a longer higher for longer and wells i think is number one higher for longer so that's why i don't think it should be be sold it's being named for my travel trust it does not go down on this negative because the earnings are going higher it's not as spent to stop charlie sharp has finally got his own team in everywhere that's the one um conversely on the uh c re front uh s l green gets an upgraded barque lease to equal weight i'd like to hear them they did i mean they reinvented the east of uh of grand central and i don't know why people were downgraded so badly it's a fantastic property it's a very well run company and the shorts which are still 21% of the float uh game stop circus ones um you could really bless that thing of the moon we've spent part of the week talking about m&a chatter and it is chatter jim but yesterday it was international paper uh tome had some comments looking at health care possibilities jnj this reported the journal about shockwave i thought that'd be incredibly shockwave by the way this kind of work the shockwave does uh is done also by one of my favorites and GE health care and very similar product i understand why jnj wants to be a nice part of their suite uh jnj needs one thing they need a settlement on town otherwise every time you get a lift sell just sell okay the lawsuits when they pop up all read terribly there was a mistrial in florida recently we don't even know if we're going to come back uh it's cookie cutter once you have the documents that you need just go suit to suit to suit you don't have to do any there's no cost on the plaintiff's bar and that's what's really bedeviled that company that's why 3m had to settle but then mike roman you know but grom they you know they they got and they moved on yep but can we argue here at this point that the burner is weren't dethalling after some of the energy deals and and now these discussions absolutely it's the right way to look at it's one of the reasons why we've stuck with the very poorly performing until recently Morgan Stanley Ted Pick this is their game and they can do a good job I look I always enjoyed listening to gorman he's now on the board of disney but i think he would be the first to tell you that the last couple quarters were not optimal they need to make us Ted Pick needs to make a statement now he's a brilliant fellow uh but they need to say listen we're ready for the ipo window and we're ready for imminent if they don't do that they don't talk about e-trade that's not going to go right back to the age yeah um i know i think could you say you have kimberly on later now kimberly is doing something that i've long wanted they read they're they're taking their uh restructure very big restructuring they're moving uh product the product get but for regions because to sell diapers they come back and they've taken number one position in china using this to sell diapers is a local thing to sell tissue is a local thing and mike shoo who's i've done a great job turning earnings but not to stop with a 3.83 yield i like this i actually debated with jeff mark so we wouldn't talk about it for our club about whether it's time to leave proctor and go to kimberly because mike shoo is taking action but it's so hard to bet against proctor because man they will yeah although this is uh gonna be the highest for kimberly at least at the open here since you ever get wrong buying kimberly what can i say i mean the Kleenex is still hey do you have any Kleenex you know if you gave nice any Kleenex and you gave me uh the one that i buy which is uh casko and you always feel like wow why did i try to save money on that um yeah they're going to incur about a billion and a half in charges as a part of this review position yeah and look mike shoo is a guy who but big fan of our show by the way love mike shoo is a guy who has had it i think with the underperformance and is going to make it so that uh they can excel in sales the china term was rather remarkable and remember china is diapers and they have a zero you know they don't have growth but in within that he focused on china he's number one yeah you can do that elsewhere there's still Argentina uh the china stuff is interesting there's the journal piece on just how far foreign direct investment has fallen right uh and then there's the meeting with she meeting with uh Schwartzman and green qualcom from chub yes i think that this is a moment where president she i don't think he'll do this but Pfizer Dr Borla offered them all of the vaccines they wanted they had a better vaccine she said no we have a better vaccine as an all-bridge why not take all these free vaccines helps them hurts us but that would be admission that his vaccine wasn't that good which would be ridiculous if we know it wasn't that good Evan Greenberg at AIG and predecessor always had the best relationship with china qualcom is he does more business with china than anyone and it not been uh they've made a lot of deals with different fan experts in the mix as well this is a very home crew audience these are companies that have liked china and never backed away indeed yeah about 20 of them all mail on meeting with the china's president it's not a lecture i hope it's a two-way stream right we're getting tired of lectures and so's the rest of the world hence why mexico's our number one trade partner hence why everyone i know is pulling back uh and it's been of a country-wise so it's time that they either recognize this or they go full-scale cold war this is the last chance ranch for the no cold war i think last exit really yes last exit to uh clinton clinton i think it's a book they made us read that that's my daughter is to the did you like jack paralloc i said i had to pretend that i liked him uh three hundred point gate at the open here for the doubt is the bulls will try once again to break this three-day loss watch bonds as well one of the most important at least fed discussions tonight six p.m. will be waller uh as we await the pals does she know that made monies on that time i mean can he hold it to like eight hundred program is done i'm rebelling against programming now just ten year four two two back in a moment it's time for jimmy stop trading you brought up a great point it's the top of the show about small caps and them doing well if you want to know a baron or a small cap you can look you can always do page that's the better one i think is sintas that provide small medium-sized a business with fire protection equipment but of course uniforms this stock at your unbelievable quarter they beat the numbers big on every single line and also raised very big uh and this is a sign of great health in the country and i think this is a remarkable company beaten raise beaten raise beaten raise uh and uh Todd Schneider is just not a showman he does not believe in showing off how good his company is but look at that that is insane that's how you make money in the market that's what larry think was talking about let's invest in companies we know when you sintas if you take a look at almost every fire extinguisher it's sintas what a great company it does uh it does make you think about the jobs number a week from friday i think we're going to be strong i like i look i there's nothing wrong with strength and inflation going down there is something wrong with strength inflation going up so let's just hope that i got a lot of oil going on i know oils and and slurry we need to see rents down needs to use cars down and those are really at the crux of what has to happen right i definitely lags but uh that needs to kick in this is a great show call well it sounds like you got a good one tonight as well we've got the ones i think you need to watch we've got murk and this is uh rob davis talking about this this drug that saves so many lives very excited it's pretty much of a death sentence if you don't take it then we have Norfolk Southern well this is a company that's in a proxy fight but also we have now have this new wrinkle csx they say they're not going to be able to take advantage of that again no one's going to say wow this is great for me but Norfolk Southern does a lot of coal and then you know mr. shoe is laying off a lot of people and he's redoing things he's had it with his company falling behind the performance of procter and gamble and i think it's a great story yeah that's an intriguing uh look yeah we're getting a lot of little getting a screen line i didn't meanwhile i'll be listening at noon uh yes thank you to our festival movie talk about a new name uh jeff marx is such a star he's just great and i cannot wait the club calls going from being with the previous organization candidly real drag to be something i just love to talk to people when they come to see Lisa's bottle signing for plus four and calm beach gardens i mean they're ready we ran out so quickly i was like say where's where's the stuff i'm signing brochures the club is just the way to go that's crazy oh yeah of course i can't wait that's a new niece thank you i'll see a mad money six p.m tonight is the doubt is hanging on to a 300 point open gain back in a moment you've been listening to the opening bell on cnbc 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 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