What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. It's Jim Kramer here. You're listening to the opening bell on CNBC's Squawk on the Street. Don't miss a minute of the action. Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Kingston, sandwich. Jim Kramer, David Faber at Post 9 of the New York Stock Exchange. Futures are red, yields still a little bouncy here as ADP comes in the second hot number of the week. Powell speaks at noon. Bostock on Squawk just now reiterating one cut this year. A roadmap begins with this rough start to Q2. The Dow and the S&P coming off their worst day in about a month. With that in mind, you're going to hear what billionaire hedge fund manager Steve Cohen had to say about markets and AI, especially. Plus, it is a pivotal day for Disney. The company's battle with Nelson Pels is set to conclude at its annual meeting. That is set for this afternoon and we will get the boat totals. And tomorrow, 9 a.m. right here. Don't miss an exclusive with Bob Iger. Is it right here? It's out there. It's out there. I will be going out there hoping that the high winds that are blanketing the area won't prevent my travel to see Mr. Iger. And by the way, just a big point here. This is not saying anything one way or the other about the boat. He's going to do the interview. Either way. Either way. Huh. Okay. Okay. Shaw. Is that okay with you? I'd be more inclined to do the interview if I won. Yeah. Well, I think that it's his expectation and or Disney's as I've been saying all along, at least, they certainly have had a lot of confidence they will win. Right. But I just wanted to make it clear that it is not. You share that advice. I do. You know, the reporting I've been able to do indicates that they're going to most likely win. I was saying this yesterday on Scott's show on halftime and it continues to be what I am hearing that they are going to win. Yeah. You know, where will they end up percentage wise? It's clearly above 50 high 50s could they even get as high as 60. We'll see other news organizations have been reporting on on some of the large shareholders. You know, I'm just giving you sort of the overview that I'm getting. That's what I'm getting. Give me the overview. Give me the overview. Okay. More than official. We'll wait for the official results. Yeah. We have an interview too. Or just no, I don't have an under view. Okay. I'm not going to treat the whole team away because they're old just get new players that I don't care about. I'm not doing that yet. I wanted to hear about Alonzo, man. And I wanted to hear about Alonco. I wanted to hear about Alonzo. Alonzo. Okay. Anyway, we'll get to that. It was a great interview with Andrew and Steve Cohen on Squawk. Let's get to the markets on track to extend these losses from yesterday's sell off gym. As Boston said, and as ADP says at 184, economy keeps the chug along here. It's a good economy. I mean, yesterday was really classic. Paychecks was down 10 points because there was this line which says, look, we may not be able to do the number. The people thought. And then it turned out it was just because of some change in federal government program and business is quite good and the companies are still finding it hard to get the right people. Now it's a little bit off to trying to get people with a little bit higher status. But you know, there was absolutely no let up. I was surprised the south wasn't that strong, but the nation was strong. The only real decline is because of the minimum wage law in California where a lot of companies have said, you know what, I'm going to get below the 50s restaurant threshold or I'm going the way off people. I'm not paying them 20 bucks an hour. So there's a place where I heard of unemployment, California. I mean, a decent story today in the journal about the discrepancy in terms of measuring where we are in terms of overall employment because of immigration and the household versus the appointments and the difference in the surveys because we may simply be undercounting the number of immigrants. I think that that's definitely happening. It's also moving up the price of rent because the cities are renting. Because of demand. Just overall demand. Yeah. I don't know. I mean, it's not that I don't trust the numbers. But I just think the economy's strong. There isn't any area of the economy that I'm seeing real weakness in. Not one. I mean, I want to keep looking and have any air. Yeah. The calendars loaded today. We'll get a lot more Fed speak as we said, Powell speaks at noon. We'll get ISM services at the top of the hour. Of course, the interview with Steve Cohen on Squawk earlier today talked about sort of economic resilience. A lot of it related to almost to his golf trade, and that is involving artificial intelligence. Take a listen. Bobble. I mean, I think the markets are discounting some of what we, you know, they think AI is going to do for companies. You think it's discounting? Discounting. So you think that there's even more upside as a result to AI? I do. You know, my view is this is a really durable theme. I'll give you one little anecdote. My CTO comes to me and says, I can save the firm $25 million by, you know, using these LLMs to improve our efficiency. Now, we're a nice sized firm. We're not a huge firm. So imagine what big companies can do, and that's just one thing, okay? So gives you, you know, a little bit of a look into what's possible. On top of that, Jim, argues that the four day work week is coming. Yeah, that's just kind of shocking. I'm not sure where he gets that, but he's Steve Cohen, and I like him very much, always have. I know that Michael Samplas had a piece that yesterday from, uh, JP Morgan talking about how he doesn't think that things have gotten out of control yet, uh, that the stocks that are doing the best are the companies that provide AI, uh, that therefore you don't have anything. You don't have anything about a, a year, 2000 at all. No. No, Bob. Right. And having reported throughout that period, it doesn't feel like that now. No. But companies aren't doing better. Because again, to your point, you can make an argument and all you want about multiples and whether they perhaps are overdone versus the potential growth rate of some of these companies. But we're not talking about a slew of companies that will never make any money. It's the option. Having a business model funded regardless. I mean, look at the opposite, we're talking about the biggest companies with the deepest pockets, the most capital being, you know, coming in going, I mean, in the history of the country. And maybe it's making it fortunate. Okay. So the stock's going to drip and drab down. That's what it did between July and December of last year. And this is why, by the way, you had such a radical move on because it just kind of didn't do anything. People gave up on Jensen Wong and they're going to give up again because they see the stock goes down. They take their cue from the stock and they say, Oh my God, look at that. That's a bubble. Well, I think that the amount of money that Nvidia's making is extraordinary. And you don't know how to value it other than to give it a higher multiple. Next year, look, I don't think it turns out to be it'll be 16 times this year's earnings. But Cohen's point is going to be one that we discuss a lot as well, which is the stock market already accounting for the productivity gains of so many companies that eventually will really incorporate the use of large language models of generative AI in their daily operations. It's starting. Right. We know that. But it's very much unclear whether it really is gained that much momentum that we can account for it. Right. Well, Bill McDermott from ServiceNow, let's say we're nowhere near. Mark Benioff has got some very good new products coming out. Let's say we're nowhere near saturation is very early. Look, it is, I thought, you know, let's accept the Cohen's interview. Someone found 25 million. I mean, I think that he sells himself short. He would be the first because he's got great people. He didn't mention any individual stocks. That's smart on his part of the thing, but they know how to do this stuff. Let's see, let's ask for it. All those stocks are the same chart. If we put a service now, the only one that's not the same is Adobe and Adobe I'm worried about. Why is he worried? Because they've got a low-end competitor that's come in and basically made it so that they're sweet, it's very expensive. That's, uh, wow. Can? Yeah, can. They'd say pronounce it with a fill off the accident. I'm very grateful. It's Canva. I think it's an Australian founder. Yeah, it's true. Obviously, Australian Philadelphia. That's a bad look at you. Do you think that that is a real competitor in terms of the loan? Oh, my God. I think that the most recent acquisition was good and the sweet. They used to be one design school to capitulate, lose, leave, leave Adobe, and you'll see that stock lower. Sorry. True. You don't have to be sorry. I think Shawn is so great, Shawn. Yeah. We discussed Disney very briefly at the top there, obviously. Again, we'll be sitting down with Bob Iger tomorrow from LA. But it does appear, guys, likely that they are going to prevail in the key shareholder vote that is going to be concluded today with the annual meeting of the company. That will begin at 1 o'clock Eastern. And again, you know, all these different reports about where vote totals are. You want to stress that you can change your vote until the very end. That has happened occasionally. But I mean, we don't need to have the conversation again, Jim. My reporting would indicate they're going to win. What will happen with the index? The only question is that size of a market. Where do the index funds come down? That's where I will. You know, I'm relying on others here at BlackRock, I believe, in Vanguard or in the Disney camp. I don't think that that's forever. This is very interesting. Those are smart guys. They took a look at things that's not just an absent mind, new votes. No. So, and listen, when ISS went for PELTS, one director for PELTS himself, not for Rizzillo, that was seen as a real positive. But, you know, retail is important here. As I reported yesterday, I think confident that they would be able to get a significant percentage of the retail investor base to go their way, obviously, having lined up the likes of a Lucas, for example, or even, you know, luring jobs, and yeah, Disney family, so many other people who might at least have some influence on a retail base, and then the institution. So, it's not going to change what Iger does, really, and obviously, I'm looking forward to the opportunity. Are you going to get a dollar, ma'am, about what's going to be happening in terms of this? Get a dollar, ma'am. How much is spent? I guess I could ask. How about a dollar amount on some of the things that they may have done with some of these people that are serving people who voted for them? You know, foundations, things like that. You better? Am I bitter? Yeah, you better. I haven't been to someone who's been to Disney World maybe ten times. I'm not bitter. You were in the Peltz camp, though, right? All right. I voted my shares for Peltz for my travel trust, so that's the camp on that. I don't think any viewer would be surprised. No. Not revelatory. Thank you for putting me on a spot. I enjoy that. I wasn't able to interview Steve Collins, so I'm taking it out of here. Well, can I tell you? I'm keeping the fillies as they were, because the last night Bryce had a... What are you going to do with the lawns, though, do you know? Because I wanted to answer them. So I don't know. I'm going to Bead's back. What do I care? And about Alonco? Alonco. I didn't like the last trade. I think that Alonco has traded that great fish business to Merck. I'm taking Alonco down that. Right. So I don't get into the final lawnpings. Guys, final point on Disney is that we've had Bill Ackman enter the fray, of course. Yes. How can you do anything without Bill Ackman being a part of it? And Elon Musk. There's... Well, guys who need to be a part of every conversation. Yes, Elon may be close to Nelson Eastage. Yes, Elon came out and said he's in support of Nelson, but, of course, we do know that he's got this running feud with Iger. Right. Goes back to when Disney pulled advertising on X, and at Andrew's conference in the fall, he had some choice words for Bob Iger, as we all know. So that continues. Well, you wouldn't want to compare Tesla stock to Disney stock since that interview. No, and the Tesla, the numbers. I mean, how's your free cash flow doing everything? On Tesla? Yeah. She the free cash flow. One of these new numbers? Oh, you mean on the new estimates? Yes. Not looking good. She's the... No. The full growth. The full growth. Yeah. Tesla shares looked like they're poised to decline a couple more percent, but were you surprised that it wasn't a more pronounced decline yesterday based on those numbers again below? Yeah. Although Adam Jonas thought it was not a pronounced decline, it was very pronounced decline. As a matter of fact, I've got to tell you that the numbers that we thought they were going to make just a couple of quarters ago, a couple of weeks ago. A couple of weeks ago? Yeah. Wow. So just the flipping negative, but investors digesting the negative volume. Your point though, Carl. Good trade, if you, if you'd pick it back there. I'm not going out of the trade. Was it February? No, it was actually November. No, it was actually November. Okay. I've got people on the ground. I've got people on the ground. Cyber truck. What about it? As many as you want? I can have as many as you want. No more. Can I get a good price on it? Um. You have to pay? I don't know. I don't know. I don't know. I'm actually hearing from, I actually have dealer contacts that say there are some cyber trucks that we want them. They're not the kind of hot, hot as we thought. Certainly a Jim Farley predicted to me what happened. He did not think that they would be as well received as the best selling truck in the world, the F-150. Right. We're going to get to more of the Tesla reaction, which continues this morning. We'll talk about Intel shares, why they are this morning's worst performer on both the S&P and the NASDAQ 100. Take a look at the pre-market. Got some bullish calls on oil today, downgrades of Pepsi and some retail names. This earthquake in Taiwan, moving TSMC, when we come back. At Morgan Stanley, old school hard work meets bold new thinking. At 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real, old school grit, new world ideas, Morgan Stanley. To learn more, visit morganstandley.com/yus, investing involves risk Morgan Stanley Smith-Barney LLC. From pit-length to podium, the Las Vegas Grand Prix is providing fans a race day experience at the speed they deserve. With the help of T-Mobile for business, our 5G Advanced Network Solutions are powering race day operations with event-wide connectivity. From streamlined gate entry to an immersive app, giving fans blazing fast access to the sport they love. This is accelerating innovation. This is the Las Vegas Grand Prix with T-Mobile for business. Take your business further at T-Mobile.com/now. Tesla shares under pressure again today, a day after falling almost 5 percent on those week Q1 delivery numbers. A lot of Wall Street calls out this morning, including J.P. Morgan cuts its target to 115 from 130. Guggenheim goes to 122, Jim. Even Jonas says his own Q2 estimate would imply 30 percent quarter and quarter, a bridge too far as he says. Yes, and the J.P. Morgan piece is incredibly damning. We were thinking they were using a Bloomberg estimate that Tesla would sell 626,000 vehicles. They sold 387,000 vehicles. That kind of missed. You're a film about where to come on right now and say the Ford did accent, it was off by 10,000. We would be shocked, shocked that falling in the estimates could be that different. This is one of the biggest misses I can recall, maybe ever. J.P. Morgan goes on to say shares still look highly expensive in their words, if in fact the company can't turn around. I listen to Kathy with this morning and obviously she thinks that 80 percent of all vehicles will be EV in a very short period of time and I thought that was fanciful. In a short time? Yeah, what period of time? Five. Five years? Yeah, I thought it was fanciful. 80 percent of all sales or all new car sales? You couldn't replace the installed base that quickly. All new car sales. Whatever it was. From what is currently what, 7 percent right now? Where are we? Yeah, that's not going to happen. I mean, I don't know, look, maybe she's even more but maybe I never want to come on air and just say that someone has no idea what they're talking about. I say that they're very nuts. She's also calling for a $2,000 stock price in that period. Yes. She's extremely, that makes her very nuts. Nice to have them pack else here. Meantime, more stories today, just the pile on continues about their share, Tesla's share in China, which was 10, 5 a year ago, now below 7, as the Chinese, they're stepping on the gas. Well, the Chinese, we know that, you know, I remember when Bill Ford said it's the greatest, it's the existential threat to us, David, you know that, I know you know that Phillip Bo's excellent piece in Chile basically shows you the world. Yeah, I, you know, that was, I thought, eye-opening for many people, just because as Phil's pointed out many times. And by the way, not just EVs, they're competing the Chinese on ICE vehicles as well at price points that are far lower. And so, yes, in these off-markets, now in the United States, you're not going to be able to buy a Chinese EV. And by the way, our Treasury Secretary on her way over there very soon to discuss that. Perhaps that'll be part of the discussion that Yellen has with her counterparts in China. With Sarah. And Sarah will be there as well. How about the land? I don't know if she's going to be in the negotiations. She's possible. Translating negotiations. Sarah may be leading the negotiations, but the question, of course, is they continue to overproduce for domestic consumption in China, therefore surplus of all sorts of goods, not just EVs and... What did they do to every industry? They're back to doing whatever they did to every industry. At the same time. And they're quite all these good. If you could offer people a fairly decent quality EV in the United States, they'd cost them $12,000. I could not get Disney to buy land in New Mexico, but the Chinese are buying land in Mexico like you wouldn't believe. Hey, New President in Mexico, by the way, scientist, community. We can look in the election. There's going to be an election. Well, she's up by 17 points, shouldn't she? The mayor of Mexico City. Yes. She's up by 17. One of the candidates. Yes. But she's a scientist. And it'll be interesting to see what she does. We're still on the lookout for more auto sales numbers from Ford today. We'll get that to you as soon as we can. In the meantime, Kramer is mad dashing the opening bell after a short break. From a flat tire in the city, to a dead battery on a distant drive, AAA is partnering with T-Mobile for Business to accelerate response times and get more drivers back on the road fast. Our nationwide connectivity powers location telematics, so AAA's fleet can find stranded drivers quickly while being fully equipped with the in-vehicle tools to have answers when they get there. This is elevating the member experience. This is AAA with T-Mobile for Business. Take your business further at T-Mobile.com/now. We got an opening bell, a little more than six minutes from now. Tyson Foods. Tyson Foods has been one of the worst performing stocks like Tesla. But that Tyson has been banned. Now they make chicken. And we are about to have, I think, a chicken price explosion. Why? Because the input costs are going down. But the actual price of chickens? No. This is your worst nightmare, right, if you're the Fed? You've got to cut the price of chickens. Now, of course, Costco slaughters like two million chickens a week. Costco downgraded today in a fatuous downgrade. But this is, David, a stock that has been horrendous. And I'm calling it as I see it. That's only been down 2% for the year. Can we see like a five-year on Tyson, please? About a five-year. I'll give you a five-year. I'll give you a five-year. It's traded down. But I'm now saying it's about to go on. But I use it as a metaphor, David. A metaphor for companies that are not lowering prices, even though their input costs have gone down. That's what I worry about if I'm the Fed. Okay. But your point here is they're not lowering prices to the final concern. And they should be. I think they should. But they're not, yeah, they're not a non-profit. No. Right. No. But this is the profitable companies. They're trying to do this. By the way, I'm also calling... I was to say they're Hershey. I think Coca Price is too high about the plummet. Hershey could be good, despite GOP desk one. I'm just a fan of good stories. And then on Disney, I like the theme parks. That's great. I'm still trying to understand why if their margins are going up, you're not happy with the company. No! I say by the stock, I just wish that I want people to pay less at the supermarket because I am in the end of Populist. Yes, you're all about. I'm represented by a man. You're all about chicken prices. All right. We've got an opening bell. We've got four and a half minutes from now. And don't forget, of course, you can always catch us anytime, anywhere, by listening to and following me, Squawk on the street, opening bell podcast. Watching shares of Intel this morning down in the pre-market after the company disclosed financials for a semiconductor manufacturing business that did reveal an operating loss of seven billion dollars in 23 gym, although they think this is probably the peak year of losses. Yeah, I don't trust them. I mean, I think that this was they had a chance to kind of give us that. David Sinja, by the way, CFO is very serious, guys, so I'm not trying to say that they bagged us. But we did have John Fort there, an excellent interview. It might have been a good time to say things are a little, maybe the cost is too high. Now, everyone's been saying the cost is too high, except for Intel, so, I mean, what's the deal here? There isn't anyone who thinks that they can get anywhere near the cost. Secretary Armando is doing a terrific job trying to make it so that they do. But I think that the differences in cost between here and Taiwan, Sami, but worse, Chang was saying when he started that company of 55, is that you're not going to be able to beat them. And it's at least not a beat of pride and how bad it would be. Let's get the opening bell here at the CNBC Real Time Exchange, and to the big board, healthcare company SolVentium celebrating its spin-off from C.M. at the NASDAQ St. David School at New York City celebrating the national winner of C.M. And there we have, I think that is the APF, the St. David's. The Asian group of boys, and led by the fellow David Hill, and I see my executive producer son, right there, Franklin Andrews. So, I'm here, cotton from down, there you go, no strength in the same as that. We talked with G.E. yesterday, now that split, do you have thoughts on SolVentium? I think it's a little overvalued, it can come down, I do think that it's good for everyone to transform this. They do have some great story divisions, but there is going to be, I think there's going to be a little more like Geralt, it just has been over Danhardt, the king public is terrific, just because of the way that people tend to want to throw away a stock that they don't know. Keep the other stock goes down, got away enough three weeks, G.E. healthcare, you have to wait about eight weeks, so you have to be very careful with these, because even though they made me go companies, the way the stock is distributed is not in sub-op. Me time, G.E. Bernova, and G.E. tacking on another percent here, that G.E. Bernova is very strange, that was up five bucks most of the day. Close down two bucks from the last half hour, we have no explanation for why that did, maybe they distributed stock to me, I don't know about, but I was very careful to say, this is again, the problem with these are unseasoned stocks, so a stock to drop four points in a few minutes is something you've got to be very careful, even though I think that the numbers are going to be excellent, G.E. Bernova, excellent. Speaking of numbers, we're getting some from Ford, from March and Q1, let's get the film about, hey Phil. Hey, Carl, for the first quarter, Ford sales up 6.8 percent here in the United States. Let's go within the numbers to look at some of the key segments that people are focused on, and we're going to start first off with EV sales, rising 86 percent. Now you could sit there and say, "Well, look, it's coming off of a lower number base from last year." 86 percent is not that impressive. You look at the sales within that, Mustang Mach-E, now the third best-selling electric vehicle in this country, huge year in terms of when, or huge quarter in terms of when they knock down the prices, that boosted sales there. Ford is now number three among automakers in the U.S. after Tesla and Hyundai in terms of EV sales, and then there are the hybrid sales up 42 percent. I know we have been hitting this repeatedly, not just with Ford, but with other automakers. The EV market, red hot. What point of reference, guys, first quarter EVs, while Ford was up 42 percent, the market overall up 45 percent, or that's hybrids. EV sales in the first quarter for the market overall up just 3 percent. You don't have to look hard in terms of seeing what people are buying right now. It is hybrids. Hybrids are in demand, and that's reflected in Ford. Q1 hybrids up 42 percent, the market overall up 45 percent. Guys, back to you. What's the, what's the, why, why hybrids? What is the appeal here that has... Pricing, pricing and charging, David, if you had to boil it down. One, on average, the transaction price on a hybrid is about five thousand dollars less than a pure EV, and yes, I know you can get some EVs lower than a hybrid out there, but that's overall for the market, and two, it's charging. I think there are a lot of people, David, who eventually want to go electric, eventually. They don't want to do it right now when it comes to public charging that is inadequate, especially for a long road trip, and I think a lot of people look at the hybrids and they say, look, I can get what I need out of this. I don't need to go fully electric right now, and the choices, and you've got Toyota out there which dominates this market. I mean, these are not, you don't have to wrap your head around saying, well, this is a new EV out there. You can go out and find a RAV4, a RAV4 hybrid. The RAV4 by internal combustion is one of the top selling vehicles. Doesn't take much to go from that over to a RAV4 hybrid, so that's why the hybrids overall are so hot right now. You know, it feels interesting, the PE of Ford is still six in change. I don't think people realize that maybe with the aversion to EV, the stock has just come off maybe too much. Are people worried about China? Is that one of the problems? Is it an existential problem that people think they can, US will import Chinese vehicles? I think people are eventually worried about what the Chinese automakers are going to do to this market. Yes, if you are an established automaker in this country, you are looking at the Chinese and saying, okay, what are we going to do? It's going to have to be trade production, otherwise you will see the Chinese set up, as they currently are constituted, set up plants in Mexico, come in through Mexico through NAFTA, unless there are trade barriers that are put in place. Because otherwise, they will come in far cheaper than what we see in the market right now. Not just for US automakers, but all automakers in terms of what they are selling here in this country. Meantime, Phil, March overall average selling price was the biggest decline ever recorded in the month of March, right? This is for industry. Yes. Yes, the industry is definitely normalizing in that regard, Karl, and you are also seeing increasingly people are saying, before, because they were limited with the chip supply over the last couple of years, you really had to buy the top end. You really didn't have much of a choice. The automakers realizing that they have more supply are coming in with lower trim levels, and that has people saying, I don't want to spend $65,000. Maybe I want to spend $51,000 or $41,000, whatever it might be. So that's a big factor in there, plus incentives are ticking higher. I appreciate that. What a week it's been in all those areas of space on Phil's beat. Incredible. I saw David Calhoun, by the way, leaving the board of Caterpillar. Yes, not running for re-election. No. And that's interesting, Caterpillar, of course, being one of the great performers of this particular year, and Chimam, will be doing an amazing job. Go back a ton of stuff, which is lower. Guys, I did want to hit Endeavor because it's something I've been following here for quite some period of time, and we did get a deal yesterday, I was able to report on it, but not on our show. The Go private from Silver Lake is official. It's done. The deal has been announced, $27.50, and a couple of interesting things here to share. No vote. No majority of the minority vote here. Yeah, there's just not a vote. It's done. No vote. No vote because you got the act, I mean, Silver Lake obviously controls the vote, and then the management team at Endeavor is rolling in, and there's no majority of the minority vote here. They're like, no, I'm not doing that. No vote. It's done. The vote is taken care of. That was in the release yesterday. Also worth noting, Mombodola is one of the big investors. As is Michael Dell's family office, DFO is what that goes by, and obviously Silver Lake and Dell have a long history together, namely partnering to take Dell private many years ago, and you may recall, of course, that Carl Icahn had a problem with the price they were paying, and that did need a vote, caused them a lot of headaches, so this time no vote. Also, some were pointing to the fact that in the press release, it says they expected close at the end of the first quarter of next year, so almost a full year. Why? Right? Why would it take a full year? What I'm hearing is that it won't, that Silver Lake wanted to give itself as much time as possible, but there is more of an expectation this thing could close as soon as the fall of this year. It's not about a Siphius review, because of Mombodola. It's not about the gaming business that is part of Endeavor. It just was, hey, why not take as much time or get as much time as we can in the contract, but they do expect they will close it in 24, perhaps as soon as the fall. So there you got it, 26 bucks on a 2750 deal. Let's call it a late fall close. We can figure out one of the biggest go privates we've seen in a very long time, not rolling in TKO the way they want you to, but even a 13 bill, it's a big number required as we talked about why it took so long, the financing, the equity financing, it just took a while to get a lot of it together, Jim. You know, it's interesting, David, I'm not going to comment directly on Endeavor because they're my agent. Right. You take, you retire 13 billion stock, we don't have issuance. I mean, we, but now we are going to get some issuance. I know J.P. That's the things in the pipe. Yeah. But the fact is, is that we are still retiring stock at a higher rate, the refiners retiring, huge amount of stock, the talent though, if I can use you on a stock, we don't have issuance, which is one of the reasons why we have a QA, and then it raises that large request from just in terms of how many public companies there are, and so many, so many fewer companies are public now than 20 years ago. I think that's a great point though, we have a lot of companies that came public to 600 of that era, and there's a revulsion, again, thank you, Michael Semblis. A revulsion IPO is because of how much money was lost. We've talked about the, the creeping LBO of the stock market for a long time. Well, there's still some reality to it, that we have sold that, and we have the GE breakup. I tried to get the Jensen long to commit to a stock split, like the 50 to one that we got from a chipotle, which by the way, no institutional put back at all. And Nvidia's not doing one, they haven't done it. Well, Jensen said that he might do it. Yeah. Yeah, he said he might give it to us. He said that was probably not the right moment when I asked for it, which I agreed. Tim, you never share, you know, on AI, Nvidia makes me think of AI, I think of Stevie Cohen's comments about AI, and how much it's helping his business, but you came back a little more concerned, and you haven't really articulated it yet, to me, why you're more concerned. Okay, so it's called baseball. I asked about how we get, you know, could a pitcher, a robot, which a perfect game could eventually say he told me that. So why is that concerned? Well, no, because like, I don't think that they can, if they're doing everything better than us at a certain point, then I just say, listen, I want to run a company, but I don't want any of us. I want them. So your concern is that it will ultimately result in fewer jobs. Well, I just had to thought that they're great productivity creators. I still believe that, and that's the service now, Salesforce model. But when I hear about their incredible superiority in so many things that the robots do, I think that if I were to start a new company, I would hire far fewer people. I'm not saying that fire people, people, once you have them, you know, that cost money to fire them, but I just think that I would open a warehouse-legistic company, and I wouldn't have a soul working for me. So after the printing press, the automobile, the steam engine, electricity, the PC, the internet, you think this is the one, and the phone. Yeah. And the phone, this is the technology that's going to hurt employment. I think that this technology that will make it so we put money and people elsewhere. They cannot do in a warehouse, what, I mean, a robot, I've seen, I saw visions of a robot picking, you know, if they knock over something, the robot's picking up very quickly. Remember, no one gets hurt at a warehouse where it's all robots. And safety. Absolutely. So you're really, you're folding in robotics to the AI. The robots that I saw, not the ones that were, that couldn't pick up the cereal box. Not the ones that weren't mixing the drinks properly. Back to that robot had no game whatsoever. I was behind the counter. I'm going to be behind the counter. So what robots did you see that are making you think that it's coming? Well, no, this is the vision that I got from the person who's in charge of robotics, because these are not powered by blackware. These do not have games. The new ones are just, I mean, I just think that we have people loading boxes. That's over. The manual labor trade is going to be displaced from that. Because the safety, the idea that a robot is at the helm and you can do it better and doesn't get hurt is huge. So now we're back to Cohen's thesis of leisure travel and golf and things we're going to do with our extra time. I think Cohen was spotted on that was a great interview. I think he's spotted on except for when he gives away two older pictures, David, who I have the love for some people who are like players to be named later, you know what I mean? Yeah, and he's still paying a lot of their contracts. Yeah, he paid out. He's got a generous guy. He's very generous. Very generous. Very generous. Maybe it'll, I mean, I remember Masa from Softbank many years ago when we did an interview talking about the coming of AI. And what do you say about layoffs? He missed it entirely in terms of investing in it properly, at least at that point he did. But you remember he was talking about we'll all just be sitting back being fed grapes and fanned, like he was small. I don't, I just think there's going to be a radical shift because the reason why I'm not as perturbed about it is because you can speak to the computer. You don't need to learn code. You don't need to go to Stanford anymore. I'm just talking about a shift of people out of dangerous jobs into jobs that are safer. And there's a lot of dangerous jobs, but you're also talking about fewer jobs. You are? Yeah, that's your concern. Yeah, I am. I just think that they're brighter than us, and so if they're brighter than us, they can, they can now think us a lot of different things. We can't outthink them. How does it outthink them? I mean, we program them, but I mean, we can't, I mean, look, if you watch every single movie made about Cary Grant, you're going to be smoother than Cary Grant. You know, you'll be like, Cary Grant. Nobody could be Cary Grant. Well, okay, I'm just using the, I'm using the robotics to become Cary Grant. I'm using our, you can make someone look like Cary Grant, talk like Cary Grant. We didn't star, and that will be a robot. You can't tell the robots from the people. You can't tell the robots from the people. You can't tell the robots from the people. You can't tell the robots from the people. You can't. In the new iterations, the robots look just like people. This is the part of, yeah. This is part of, yeah. This is part of why I'm not able to go see this. Can I become Cary Grant? I'm telling Lincoln, the guy, Lincoln who had extra tickets to America, you know, I didn't know he had extra tickets to America, because. Hey, Jim, did you get a couple extra tickets then? Our short term, ALTA is underperforming today, presenting at the JP Morgan retail conference. Since the two months into the fiscal year, we have seen a slowdown in the total category. We've seen this growth rate come down probably faster than we anticipated. And that is unbelievable, because he is a very good operator, and I'm just about with Kimball. And what's incredible about ALTA is that this had been the way they were the great democratizer of a product that even got Estee Lauder in there. So that is that's surprisingly bad news, okay? Surprising. We didn't mention the haska downgrade of five cost dollar tree and lows. That was extreme. I mean, Costco's having a terrific time, but below not doing well. I want to see, before we get two craze, Dave and Buster's had a very good quarter, even with a minus seven comp, a simple play. It's doing quite well. As stock was up six three miles. Best performing group right now is probably the banks, though, up to that rate, oh my. But that's just rates, right? I don't know what's, I mean, the bank, well, Bank of America is up 1.4% city moving up again city. Man, what a year. And we talked about it earlier in the week, and Wells Fargo, one of your favorites. Charlie Sharp. I mean, look at, there's no Charlie Sharp, the charts here, I believe, we're going back to the old 14 multiple of the of the warm buffet days. It could happen. Are you going to, are we going to go into the Prince Hot again on banks? I think that we're going to see some good numbers. So yeah, but I think that's reliant on Ted Pick from Morgan Stanley not cutting our heads off the new CEO because Corman, by the way, Corman is on the board of Disney. Yes, he is. But the last two quarters of Morgan standing were suboptic. They were, and that's one reason why it lags dramatically the rest of the group, although it isn't the green now for the year of the stock, just barely in the green. Well, that's good because Goldman is incredibly hot. We're getting ISM services in about 15, but first some PMIs. Let's get back to Rick Santelli. Hey, Rick. Yes, these are S&P global. Now, this is the services and composite. These are final reads. These will replace the readings of a couple of weeks ago, 51.7 was the mid month read. It remains at 51.7. That is noteworthy here, 14 consecutive months over 50, obviously the service side is humming along better than the manufacturing side, and 51.7, well, it's the weakest of the year. As a matter of fact, you have to go back to, well, December of last year to find a lower number, but nonetheless, still all above 50. Now, if we look at the composite, there was a subtle change, 52.1 versus 52.2, also 14 consecutive readings above 50, and all of them are hovering right in the 52 range, January, February, and this March final. Yields? Wow. Yields of Zoom, Zoom, Zoom. Yesterday's close was technically significant. The highest yield close of the year for many of the treasuries outside of two-year, 432-ish was the double-top in tens. We've taken that out. Looks like four and a half is coming quickly, and we still have ISM services, PMIs to come up at the top of the hour. Many traders like the granular look of those a bit better. Squawk on the street will return after a short break. Take a look at Micron. We're watching the developments of this earthquake in Taiwan overnight, the biggest earthquake there. In about a quarter century, several killed and others injured. Micron has said, and Taiwan 72, we're watching for signs of some chip-making production being curtailed. Maybe better pricing. Stock is up 1%, and a roughly flat tape dows down 5. Stop trading with Jimma's next. Let's get to Jimma's stop trading. The most popular stock on Mad Money is so fine. Needham comes out today with a piece saying, "Listen, $10 targets and things are getting better there." It's Anthony Noto. That's a great relief to people who are concerned that perhaps there was a convert that was done that issued a lot of stock and really crushed it. So maybe this is the comeback, I hope. Yesterday, you said you thought we were at a pivotal moment? Yeah, I just think that the interest rates are just still not going on. We got to wait to see what we have on employment, but I don't really trust this here. I just don't trust them yet. Still over, boy. Biave had a great table last night looking at years in which S&P's up 10+ end of March. Every year, except 87, you end up, you just could add more. It can happen, but we got to shake this off. I keep thinking about what Steve Cohen said AI and hoping that people realize that you can stop selling in video, you can stop selling the ones that are related to AI. AI has been terrible so far in the last few days, but, you know, it's soggy, market soggy. I like the fact that new course update, we've been having an industrial sell-off and maybe that's a good sign. How about tonight? All right. So I've got David's favorite, which he probably gets when he goes to Costco, Shark Ninja. Shark Ninja. Shark Ninja. Yes. They make the finest vacuum cleaners there is to be had. 51% Chinese. Other than Dyson and a lot of other brands. No, I think that they have a superior price point. Shark Ninja. Well, price point. Yeah. Then a price point. Yeah. And Joe, Joe Hitters coming on to talk about how they managed to be able to get a workaround in Baltimore. So I'm very encouraged about Baltimore. I've always helped at Baltimore. I always regardless of the citrus, any Philadelphia in that we're step-children to New York and I don't like that. Look, the market's okay. It's not great in a bit. I wouldn't need to trace them off. Yeah. Jim, busy week. We'll see you tonight. Bad money. Six p.m. Eastern time. When we come back, a more breaking economic data with some ISM services in a moment. You've been listening to the opening bell on CNBC's Squawk on the street. All opinions expressed by the Squawk on the street participants are solely their opinions and do not reflect the opinions of CNBC, NBC, Universal or their parent company or affiliates and may have been previously disseminated by them on television, radio, internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. 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