At Capella University, you'll get support from people who care about your success. From before you enroll to after you graduate, pursue your goals knowing help is available when you need it. Imagine your future differently at Capella.edu. Market moving insight and analysis join Jim Kramer, David Faber and me, Carl Cantonea, on the opening bell hour of CNBC Squawk on the Street. Good Wednesday morning and welcome to Squawk on the Street on David Faber with Jim Kramer. We are live from post-9 of the New York Stock Exchange. Carl's on assignment this morning. Let's give you a look at futures. Of course, as Andrew just told you, we are looking for a sharply lower open given that hotter than expected CPI print. Our roadmap does begin with that inflation surprise. Consumer prices rising more than expected from our futures as you just saw tumbling. And of course, all of it, because the odds for June Fed rate policy pivot, well, they're going. They're going. They're going down. They're going to be high. Plus big tech divergence, Alphabet, Amazon at highs, Jim, but Apple and Tesla, I don't know if you've noticed, they've been struggling a bit. Nvidia? We're going to talk about that stock, of course. How could we not? It's entering a correction. A correction. Well, if you don't know what it is or if you think it's my goal, don't mind yourself. And finally, Jim, the airlines are leading the S&P pre-market gainers, Delta, topping quarterly estimates, it's focused on efficiencies. I'm focused on the fact that Phil will boast me for 25 years and he's the best and I'm going to say congratulations. That's that new side of real things. We've got the best there is. And I'm sorry. I have to point it out. Why I feel more than we ever have. All right. Let's start off, though, with the broader market, Jim. Get your reaction to the hotter than expected CPI print we've seen and heard from our friends on Squawk Box. Obviously, the analysis from their guests in terms of expectations for a Fed rate cut, which are fading fast. The yield curve actually inverting a bit, you've got the two-year moving up hot more in yield than the tenure right now. Right. So you start thinking, well, why did the Fed kind of commit to neutrality? Because these numbers, where the numbers, what was bad was worse. I mean, we've been worried about shelter for a long time, shelter going in the wrong direction. I think the employment I've been fighting gave you could read of what was going to happen of things that we have to cost more. We have tremendous surge in people who work in travel and leisure, so, of course, those wages have gone up. We have a surge of health care, those wages have gone up. But David, there's a war premium to oil, and we know this war premium to oil. So that should be the least of our concerns, as long as there's a war, there's going to be a premium. If you think that war is going in the Middle East, it's going to last for me in the Middle East War. It's going to last for a long time, then there's going to remain a premium. But the only number that I really, the numbers that I really freak out about, I guess I'm supposed to freak out about are just the endless ways to be able to find people to have somewhere to live. Yeah. And that includes immigrants, of which, by the way, since the government doesn't have any numbers at all, we have to presume is hot, and it won't stay. By the way, raising mortgage rates only makes it exasperated, because we don't, you don't want to build. If you're told, brothers, you look at these numbers sitting in the middle, I'm going to make fewer homes. So that's the intractable part. That's the part that you raised rates wouldn't make things better. So that's where the Fed's really in a box, not food. I mean, finally food, stop being more expensive at home, and it's a little more expensive at the store. I like that. But these numbers are the numbers of an economy that is on the move, and it's terrific. And if we're all going to sweat the program and decide that the 10 year and 30 year auctions are going to go bad and we get to 5%, you and I have been there 5%. That's called a great level. So I don't want to lose sight of how unnatural the end is. Oh, but the fact that we may very well get no rate cuts for the remainder of this year is very different than what people had anticipated as 2023 came to an end, not to mention even a few weeks ago or months ago. Well, those people are wrong. What does that going to mean for the broader market? Those people are wrong. Okay, they may be, but they can also vote with their feet and say, "Well, I'm not going to buy equities right now." They can go buy CDs. They can go buy the short. Yeah. I have a lot of short rate paper and I'm looking at it and I'm saying, "Wow, what do I do buy more short rate paper by CDs? The CD rates went down yesterday." It's kind of disconcerting. But I just think that there are a lot of people who are on the wrong side of this trade and they're frantically getting out and you see them first in the futures and then there'll be a lot of people who are very scared and they're in MAG-7 and they don't know what the MAG-7 are other than the fact that it's not Steve McQueen and you'll Brenner anymore. And then there are a lot of people in the industrials and they think, "Oh, my." I guess the data centers aren't going to be built out. That's wrong. And then there's just fellow travelers, David. Fellow travelers who just say, "You know what, this market's been good since the Fed pivoted." "Oh, my. Maybe the Fed's done." Done. All right. So what does your look like for a stock market in which the Fed is no, you know, we're neutral. They're new. In other words, no rate cuts. Well, one or none. Look, you know, Rick Shintelli's been very right about what's going to happen with the auctions and yesterday he said that there was an auction, a short rate of auction that was very bad. I think this auction is going to be very bad today. But I also think I'd come back to say, "Let it come in. Let it come in." If you haven't taken any profits and you don't know what you want, okay, so let's get the embedding. I'm sticking. I have a long-term view of the video. I've had a long-term view of the video since 2012. Am I changed? No. I mean, the Intel so-called claim that they were faster, stronger than this or that, give me a break. I'm admitting to that one. NVIDIA's a great company. It's got a very low multiple. But if you don't know what NVIDIA is, David, and you bought it because you liked what I said about it, why don't you sell something? You know, just like, please, please me. Sell some. So I don't have to hear when it's at 800. Why didn't I get it? Although we do have Morgan Stanley raising its price target as this says, "Is this continuous to strengthen for NVIDIA?" They have, but so what? They're talking about the hyperscalers planning out data center expansions for the next three to four years that would tend to indicate durability. There is great deal, but that's why I'm saying own it, don't trade it, but I also have, we also know that there are people who don't know what they own. And when you meet people who stop you and say, "Thank you for NVIDIA," and then you follow up and you say, "What does NVIDIA do?" They're stunned. They're stunned. And they don't know. I mean, they think, "Well, NVIDIA, let me tell you, they, wow, Jensen." That's what they say. Those are the people who have, they're the fellow travelers that are most worried about. They don't know what they're doing in NVIDIA. They see it go down and they say, "Well, it must be warm." Those are the people you're going to have them reassess just like there are people who are reassessing the Fed. And then once rates get to where they have to go, which is not that high because there is, frankly, at a certain level of self-correction, you're fine. But nobody wants to hear that you're fine. We have cash for travel trust. We've been waiting for decline. We're getting the decline. Does that mean I should now wait for a bigger decline? No. Get the decline? I don't know where, and with this, as we're calling it a correction, this decline of what 12% from the highs, NVIDIA is multiples down to what, Jim? I don't... Where are we on 24/45? Well, I mean, it could be 23 next year, but David, if we go through, if we bore people and don't talk about muscular, I haven't talked about buffett like this, bring him into the rating scene. Sure. And over this news release from the seat, on the consumer price index, yeah. The trunk of labor. I mean, it's energy, it's rent, and it's damn, but it means I mentioned buffett, it's auto insurance. Will we please have some sort of competition in auto insurance? Auto insurance is not good. Food away from home keeps going up. Oh, food away from home. I mean, what are you going to do? Stay home. The last month was actually not that bad in terms of food away from home. Liquor prices are coming down. Why don't people realize that? But these are just sticky. They, you need commodities to come in a little. They are, and you need labor to cost less, and that's what the immigration issue is. The hidden labor workers in the kitchen will make it so eventually you'll be able to get a cheap burger, fries, and not die a coke, but jack and die. All right. So you're not overly concerned. No. You look at a market. No, I'm not. Unless the S&P have a significant decline. Again, when we start trading 22 minutes from now. Well, look, again, if you know what you own and you look at the news release from the Bureau of Labor Statistics, and you decide, you know what? I am going to bail out of Nvidia because I see this food away from home numbers bad, and I'm very, very, very worried about used cars and trucks. Well, I mean, used cars and trucks are actually pretty good, so let's forget that. Then you shouldn't have been in, or you got a chance. You're up a lot. Sell it to me. Come down so I can buy it. Because I know what it is. I know what Nvidia does. I know that the Blackwell is multiple times better than what Intel is doing. I know that Google and Nvidia are working together. I know the Chancellor Wong said, "If Google's making a chip, I want to help." Is that a reason to bail? Well, go ahead. I said it over and over again after the GGC conference, the stock goes down. So now we're in the GGC conference, so whatever that is like, wow, what a shocker, shocker. As for the MAG 7 overall, mentioned it at the top, Alphabet Amazon, of course, all-time highs. Alphabet is something of a surprise. Again, I've made this point a number of times. It turned out that you two have given the existential crisis that lasted a week there for investors. And Thomas Curran is the star of the show. Any number of well-known pundits of reflecting on social media, for ex, for example, about the coming demise or questioning its ability to compete. Well, it was that. Or whether it was real surprise. That got down to it. By the way, it might seem to me. That might seem to me. It might still have its monopoly. It might still have its monopoly in search. It might have had a low end. It might have had a low end. It had a multiple of a French friend comedy for him. Thomas Curran, of course. They had... Yeah, they had their big, uh... That's a big get. Okay? Yeah. And if you're not respectful to Curran and you call him Tom, interview over partner. Oh, really? I didn't know that. Oh, just an interview. I'm not familiar with the gentleman. You want to take a listen to what he had to say? Why not? What the hell? What else are we going to do? I don't know what the hell us we're going to do. I'm going to watch him work. Go down. Let's have some information. This was him yesterday, the Google Cloud CEO, take a listen. One of them is offering a closed system. They have one model, one provider of that model. They don't even own that model. The other one does not have any AI expertise, so they only offer third party models. We blend both. We have our own models and we have the expertise to build systems and integrate these models into our products so that people can use it. At the same time, we're not taking a closed proprietary point of view. I told you he's going to do 50 billion. That's right. I told you he's going to do 50 billion. People are like, "Wow, what does that mean?" Well, it means he's doing very well. He's taking share. But there's a lot of things. He's taking share. There's an awful lot of share. There's a lot of share. I mean, that's the point. You can't have an environment in which the hyperscalers, Amazon, Microsoft, or Azure, and Google Cloud, all of beneficiaries. You're in the second inning of what's happening in terms of generative AI. Well, I hate baseball analysis because second inning, now baseball games go so fast. I don't want this again. But I do think that the cloud is just in such demand. They're only about, I'd say, about maybe 15% of businesses have moved to the cloud. A lot of room. There's a lot of room. Let's read it. What do people do? Okay. As long as interest rates are going higher, and we do have some auctions and the auctions probably go badly, well, you start picking things when you see things overdone, but you must know what they are, okay? You must know that ABV has a bunch of really good drugs. So when it gets to 4% yield, that's good. Not bad. You have to kind of flip the equation and say, well, you know what, this market's good ever since the Fed pivoted, but now we're not sure about the Fed. Let's go back to what looks interesting. I mean, here, actually, let's get granular because I really don't like this idea of the market, the market, the market. Let's talk about Caterpillar because we all know what Caterpillar does, right? Make Earth move. They do more than that, but they're central to data center and to oil, not to China anymore. Okay. So cat got up to 17 times earnings, and it's had a run of 25%. Yes. All right. 25% for one of the companies that is decyclicalized, that's what I call it, it's a kind of a strange term, but I got it from Jim elp would be used as CEO. So is that stock due to come in? Yes. Do you buy it or sell it? It's an infrastructure play. The federal money is just getting there right now. That is something. It's at 370 at 330 at 330, which is probably going to be at 330 at 330 at 330. I would buy cat, let the people who have just been riding it and just saying, you know what, I'm great in cat. Let them get scared. Let them get scared. Okay. Okay, Jim. I mean, let's talk Disney. There's one. You got to talk Disney again. No, let's forget Disney. I know. No. Let's forget Paramount. I'm looking for Dow stocks that I know are going to be, the reason I'm doing is it does down 500. Okay. All right. How about your favorite? I have some sales force. That's it. Pretend, you know, it probably goes down 5%. Surface now probably goes down 3%. These are AI companies. AI gets down between 3 and 5%. Right. If we only get scared and thinks it's over, maybe they retreat to the tenure, maybe they treat the CDs. I'm saying, this is the school we've been expecting. I'm not saying enjoy it. I am saying it probably lasts a little bit because we have to endure Jamie Diamond saying he's very concerned that right, well, it's tomorrow's business. I mean, a fries business. Yeah. Oh, we're getting JP Morgan. Yeah. Well, you know, here, starting with, yes. He won't come in the morning season begins the end of the week. He won't come on the call, but obviously we're working off of Jamie's comments from his annual letter in which he said that rates could hit his highs 8% as a risk. He didn't say it's going to happen, but he's got, you know, he'll, like, say something negative and kill his own stock for a couple of weeks and he'll say, why did you do that, Jamie? They'll say, well, because that's what I think. Yeah. Meanwhile, his stock is up over 52%. Right. In a year. Yes. I mean, it sells at 12 times earnings, which is too low a multiple, but I think that when I look at, I'm trying to pick down stocks, remember, I'm not being at random here. You ditched me on Disney. That was fine. I didn't care. But JP Morgan is at 12 times earnings and he is going to say negative things because that's what he does. Okay. So do you buy it or sell it after he said negative things? How about you wait four days, start to buy back of the company. Well, he's not going to buy it that much here, but I just think that this is real life. That Jamie Diamond stock is up huge. So people are going to sell though. That's what happens. That's what happens, Jim. That's what happens. That's what happens. We are potentially going to have it down day. We'll see how we move towards the trip in the midst of the trading. This is not the playoffs and what happens is we're one and done. It's not that. She's like a long term situation and we can trade it. You want me to trade? Oh, dear. I got to buy it and sell it by itself. I sold deer and bought it and sold it. No. I mean, just like let it come in a little. If you don't know what the company does, if you think deer is a deer and you think cat is a cat, well, I mean, good aren't you? You shouldn't be doing this stuff anyway. Right. Of course, these days, a lot of them. Yeah, there's such these dead cat down. A lot of it has been reduced to almost trading on your phone as though you're betting basketball. My wife. My wife. Maybe she watches. Lovely. Lovely. You know, I can't just show now for 10 years. 12 years. I'm aware how long we've been doing this. Well, then why don't you tell her? Why change a good thing? When we come back, Delta's one of the morning's bright spots. We're going to explain why. Take another look at futures, of course. Jim's not worried. 14 minutes till we open. Oh, David, I'm really scared. The market is up. Huge. We're right back after this. Hi, I'm Ben Rosuto, wealth strategist at Janice Henderson Investors. Is a brighter future possible at Janice Henderson, we think it is. For 90 years, we've worked to help clients achieve superior financial outcomes and fulfill our purpose of investing in a brighter future together. We know that this means our thinking and our investments are helping to shape millions of futures at Janice Henderson. Just got even better. Now you're automatically connected to Wi-Fi speeds up to a gig while you're on the go. Plus, existing XFINITY customers can buy one unlimited line and get one free for a year. Visit XFINITYMobile.com to learn more. Offer N621, restrictions apply, existing XFINITY internet service and two new unlimited lines require. Reduce speeds up to 30 gigabytes of usage per line, data thresholds may vary. Actual Wi-Fi speeds vary, not guaranteed. We've seen a 15-point acceleration since the start of the year in business travel and we're now back revenue-wise, at or above pre-pandemic levels. The volumes are still a little bit off, maybe 90%, but we're doing really, really well. It was built to CEO at Bastion discussing the state of business travel with Phil LaVoe. Of course, I was an interview earlier on Squawkbox. The airline did post quarterly results that were above analyst estimates. It is forecasting strong summer travel demand. I thought that was interesting, Jim. It was a question we asked so often during the course of the pandemic and since then, would business travel ever, ever get back to the level? He's saying dollar-wise, I believe it has, maybe not quite as many passengers still. The stock goes to $2.50 when Phil interviewed Mr. Bastion and I'm saying Delta's really on its game. There are actually a lot of difference, dispersion among the airlines about who's doing a good job. Obviously, there's this array among this spirit, JetBlue. It's not clear the United just has its momentum, Southwest Air is unfortunate, really bad. And Delta has shined here and that's because it's really well-run and I applaud Mr. Bastion. He's done a great job. That stock will be down today. That's the kind of thing I'm looking at. Okay, so down today and all the analysts tomorrow will come out and recommend it because it turned out to be much better than expected. Yeah. It's kind of a good model, by the way. But pilots are being laid off. Say again? Pilots are being laid off. Pilots are being laid off. Remember what we have? We had a pilot shortage that ended. That's a good example of what can happen if you take rates higher and not everybody does well. So, that's where the economy is working and where it's not, David, can we just like talk about the idea that there's no price cutting in insurance, that there's nothing. Your healthcare insurance is going up, up, up. There's no competition among those companies. It seems like there's no competition among auto insurance and we're accepting and that is the shame. And I just understand why the capital system isn't working and someone doesn't come in with a decent rate healthcare plan and a decent rate insurance because that's killing us. And the fact that we haven't been able to build enough buildings to be able to accommodate 10 million people that have come here legally, no legally in the last three years. And those are the things that I don't want to get too political but those are the things that are going to create an issue when it gets to the election. Those are the things people get mad at and blame the president. And or right inflation overall, again, we're running it. Whatever, three and a half or more per cent a year for, but that's off of, you know, 19 to 20. I mean, 21 and 22 which were brilliant. All right. Yeah. So stock. All right. Get ready. You got a mad dash coming up. We're going to get back to talking about some stocks here. So we can't you down to an opening bell. Of course, you see in futures, you know, we're going to have a far lower open based on that CPI print that was, as we like to say, hotter than expected. You're so scared. Racing, perhaps, many hopes that it already been dashed to a certain extent that we would get rate cuts in the near term. More squawk in the street after this. At Capella University, you'll get support from people who care about your success. From before you enroll to after you graduate, pursue your goals knowing help is available when you need it. Imagine your future differently at Capella.edu. All right. Let's get to a quick mad dash, Jim, because we've got an opening bill right away. Sure. Oh, yes. Thank you so much, I love it, 6,000 teens and what did they like? They liked Hoka. They liked ugs, therefore, they liked deckers. Well, today, Truus comes out with some credit card data saying that ugs is meaning the outperformed, absolutely. But Hoka had a week February, David, and that's going to cause people to say why did I buy that yesterday? Yeah. Hoka. No way. Hoka. Love those. Now, they didn't say, they didn't slag on, on one at good numbers, but there's a big short position. I don't want those squeaky sneakers. And the pebbles that get in their soles wore those arms again. I'm going to make them all buy coming to the house because I don't want pebbles in all my house. Yes, pebbles. No. Bam, bam. I'm off on on. All right. We'll see you open bell. Take a look at Real Comedy Stains. Not unexpectedly. A lot of red on that board. I'll cure it to big boards. I don't even know. That's a health care provider in Latin America. It's celebrating its recent wrestling at the Mass Lab. Well, excuse me, recent list. And over at the Mass Lab, we've got the national security emerging markets in New York. The National Security Emerging Markets Index ETF because, Jim, there is an ETF for everything. You should have private credit ETF that, whether it came out the other day and it just got crushed. It got crushed. Yeah. I mean, the value is like $4 and it's 60. I mean, there's literally an ETF for everything. And a lot of them are silly. But David, China ETF, yes, no, maybe. Jack Mob, same things. Jack Mob, same things. And it may be having an impact on Baba. Wait, let's talk about what it may mean. David, are they pivoting towards capitalism or is that just a thing? No, no. Listen, Mr. Ma's comments about Alibaba and it is interesting because, you know, we talk so often about that being the bellwether of the Chinese market in some way. And certainly, it's the name that many investors know the best. But they lost their mojo at Baba. Oh, the mojo person. I'm glad you brought that up. You can do a duo or bite dance, not a public company. They've been outclassed. And so Ma kind of saying, hey, you know what, we got to, we got to get back to, back to business, a linking memo that's being reported to employees expressing support for the restructuring efforts, you know, saying, hey, we've had a somewhat tumultuous time recently, but we must not only have the courage to admit and correct yesterday's problems in a timely manner, but also make reforms for the future. But this year, it's the many downs and questions in the company. And Alibaba shares are an outlier today because they're up about 2% on the mojo memo. I think that this stock is very inexpensive. Can we just reflect on Sarah's excellent interview with Sarah, but get young for a moment. Let's see. So we have our trust check in, go to China, yes, and basically slam the Chinese, right? Then we have Fitch downgrading China, okay? Well, these aren't supposed to happen. We're supposed to go there and try to sell more pearl for heaven's sake. Remember that? We're supposed to open more plants there and take share. Meanwhile, what happens? Jim Cook devices in India. Yes, 14. Yeah. Do you think he's, no, do you think he's just sitting there and saying, Oh my God, China's not going in India. It's got the youngest population. I'm saying that there's a shift going on. And we act as if the Chinese because they do have a very powerful military are always threatening us Taiwan send me with a fantastic number last night. But I'm just saying that when I listened to the interview with Sarah, I say to myself, Wow, where's the, um, the old days where we were mendicants for Chinese business? I'm sorry. Those days are, oh, no, those days are in foreign investment. Obviously direct foreign investment has fallen dramatically as we know. Yeah. Big Mexican election. We're not spending any time in Mexico, which is ridiculous. Why do you say that? Because they're our biggest trading partner and they're a fabulous trading partner and other than the Canadian Pacific ASU that you can't even buy anything that makes any money for you. You can buy the peso, which I think is very strong. Yeah. But ultimately I think that that's our biggest trading partner. And I don't know why Biden spends, doesn't spend more time trying to figure out how to fix the border because we have a president there who's very pro-capitalism and the new president will most likely be pro-capitalist. So that's where we should be spending more time in India, Mexico. And obviously the sun said interview with Yellen was meaningful. The thing that the Chinese are exporting more than anything else I know is cyber terrorism. Last I looked, that doesn't really have a good multiple. No, it doesn't. And it is a huge issue. One that we can't really talk about enough in some ways, but we don't because it's become so commonplace for there to be yet another attack and another. I mean, it was many, many years ago now when I did my dock on Chinese cyber espionage. And when you didn't ring your phone, famously, if you brought it out? But a burner? You always have to bring a burner when you do the same. That was like the closest you ever came to the wire. I don't even know many years ago, that was 10, 11, 12, I can't even remember. And it's only increased since then. There was a brief lull during a part of the Obama administration when it sort of really warned them, but it's come back. I mean, they have thousands of people dedicated to doing nothing, but as we know cyber espionage. Are you really watching this going on with UnitedHealth and doing press releases by people, by companies that are gonna take me more to your guest last night, George Kurtz from CrowdStrike and Microsoft, because he had some comments to say, we can talk about the breach at UnitedHealthcare, but what did Kurtz have to say about Microsoft? I thought it was interesting how outspoken he was. Let's take a listen. George Kurtz on Mad Money last night's CEO of CrowdStrike talking about how or not how active Microsoft has been in terms of combating. And being transparent. Sorry. Not. This is really important. We should all listen to this. What was really concerning to me is, is if they're not being transparent and forthright with the public, what are they doing to their customers and are they putting them at risk? And I think that's one of the most damning things that came out of the report is just the cultural change that has to take place at Microsoft at the moment. Now, Microsoft, give us some more context on Microsoft. Microsoft, did it give me a release saying that they are changing things, but there was an investigation of Microsoft said that they had found the hack and it was solved. And that was not true. Microsoft admitted that it wasn't true. And I think that George, if I had prodded him, be given one more minute, I would have asked him, what would happen if this were Boeing? And David Calhoun went lied to the FAA. Well, I think that we would see very few Boeing planes in the air. They would be grounded. And I feel the same way Microsoft would be grounded. But David Microsoft, they were beaten up in 2000 ever since then, free ride. You think they have not received enough scrutiny for their lack of... I think... I mean, they're so important for the number of hacks that have taken place and/or their unwillingness to fully communicate around them. I think that they're surprised that there isn't more appropriate. I think that it's not going to come here and just say, listen, we really screwed up, we're trying to frantically get this culture together. And this is never going to happen again, because the report, which is by the Department of Homeland Security, this is not like a Department of Google and Amazon, is so damning that I was like, previously, like, no, they could not have lied to Homeland Security. Could they? Could they really have said a hack was done, found, rooted out, and it wasn't? Seems like a bad thing to choose to do. Suboptimal? Yes. I think that George pointed out, I'm trying to get to the Department of Homeland Security guy one. Again, we did read a statement from Microsoft, which admitted, by the way, they got to fix their culture. But here's what happened last time when this report came out. Microsoft stock was up 15 cents. Hey! You know, the people who spoke it. It doesn't. Yeah. Homeland Security? Ain't got nothing for you. No, those kinds of stories don't typically get a big reaction in the equity markets. As we take a look at Microsoft shares, up some 45% over the course of the year, of course it is the largest market cap company of any in our market at $3.13 trillion. That's all right, but they're having a great quarter exceeding that amount of apple at this point. The new PC is going to have a co-pilot button, it's going to be the biggest refresh cycle in history. I know today it's not the day to talk about it because we're supposed to be really scared and try to push the market over. Well we're not doing any of those things. Homie Kramer does that. If you are just joining us, of course, you can see at the bottom of your screen, CPIX food was hotter than anticipated, versus 0.3, that has led to a surge in rates. And of course, a overall belief that we will not see a near-term rate cut, certainly June seems to be off the table to the extent that the Fed is data dependent. And we have, oh, by the way, all right, we're down 1.1% in the S&P and 1.08% in the NASDAQ. You had that bad bond auction later, let's just admit that's going to go badly. But look, heating well's up, heating well. We don't use heating well in the country. 8% of the country uses heating well. We are 34% natural gas going to 40%. So I mean, I'm not going to, this thing was created before we had it so better back then. You're going to take the CPI to task and go forward your phone on it. If you don't go wannier than you can't explain why this index is incorrect versus the average things that Americans do. Was a power really up this big? I know. Was it? TJ Maxx for heaven's sake. That plastic belt fooled you. Power was up 0.7%. Yeah, I mean, give me a break. Where? Where? I don't know, Jim. I don't know where I don't know where I don't. I don't shop. Gap stores. Okay. I don't know. Hey, maybe it's up basis because they're being challenged. But don't bump. Thank you. Yes. Macy's did add two members to its board. They are gentlemen's named Clark and Markey. I'm looking for various press releases here. For Arc House, along with a credit focused fund, have been trying to buy the company. And they have agreed with Macy's to add two board members immediately as I go through my paper series trying to find it. Oh, yeah. Here's my Macy's file. Stock's not doing much. Are they working with Richard Clark and Richard Markey? They will join the finance committee tasked with reviewing the Arc House and brigade proposal to acquire Macy's. Remember, you've also got that acquisition out there that at least they are now doing due diligence on and trying to move forward with a plan to potentially buy the company. Interesting, because Arc House, of course, is sort of the activist here, brigade, their partner is really a $25 billion credit focused fund that would and is potentially happy to move forward with the offer. The last offer was $24, right, Jim? $24 a share. Macy's is $6 times earnings, which is in the pathetic portion of the S&P along with Ford and GM. OK, Macy's is incredibly inexpensive. Tony Spring has succeeded Jeff Ginnett. Jeff Ginnett fixed the balance sheet. That was a monumental task. Tony's got really good eyes, meaning that he has Bloomingdale focused. I don't know if you've seen the stores. The stores are electric. They're electric. No, I have them. Oh, my. As I said previously, I don't. I see the change in both in Bloomingdale's Macy's is going to be harder to turn. But what he's doing with Macy's, he continues Jeff Ginnett's correct approach of closing the ones that have banned numbers. So should the stock have six times earnings? I mean, people think that the apartment store is dead. I understand that. I don't think I think Tony Spring can resurrect it. Well, yeah, but at the same time, I put what I'm in for-- 24 bucks sold to you or not. Here you are, Macy's shareholders, 24 bucks. Take it or not. I hate that. On an $19 stock right now. Tony, Tony. It's going to take a while. It's obviously not going to trade back to 24. But this is that dilemma. Do I take the 24 now or bet that I'm going to get to 30 in three years and 24 in this market seems good? You're taking the 24, Jim. That's what you're doing. I know. I don't. You are. The market doesn't want to give Tony Spring his due. It's fine. I'll take the market. The market's down 504. What was it down on the great day of the crash? 500 and 8. How about-- Let them figure it out as a private company? Okay, fair enough. All right. Glad we have settled that. We don't need to-- How about poultry data? We don't need to discuss Macy's. Poultry was up. Enough with this for the eye. Well, why do you think the market's down because of Macy's? I don't know. You want to talk-- Let's talk about UBS for a minute. Let's go overseas. Shall we? Bloomberg Store. UBS. Well, the stock's down. It's almost a year since they-- since Credit Suisse failed and the Swiss coast-- I'll go with you. It's two banks. I'll go UBS down three. I'll go UBS. I'll go UBS. I'll see you UBS. There's UBS shares now 3.6% substantial increase in regulatory capital requirements under reforms the Swiss government is advocating for in the wake, of course, of the collapse of Credit Suisse, the so-called federal council proposing systematically important Swiss banks that would basically be-- There's only really-- Yeah. What else is there? St. And there, which is just crushing it. No, but I'm saying in Europe, it's the largest bank in Europe. Must hold significantly more capital against their foreign units. UBS, by the way, have been very aggressive in the U.S. once again. Forget, though, Credit Suisse, they were a major player for so many years. They had-- No, I-- All they did was get everything-- I have not been there. Just get things wrong. The wrong-- For so many years of getting things wrong. They've been on the wrong side of the trade. Oh. Remember, RK goes was-- I mean, like that one always-- What is going on? Well, I mean-- Anyhow, that's why UBS shares are down. Okay. Well, okay, stocks. What are you doing? So, Nvidia's up. So, therefore, if you remember, if you think that Nvidia is a dog, then you got your little chance here. You can't see it up in part because of the Morgan Stanley Price target move that we mentioned. They're talking about a stock, Jim, based on their-- It tells them critical help was, John. Based on their $25 calendar year-- 2025 calendar year estimate, the stock trades at 28 times. Well, I mean, if I-- 28 times. If it's part of a bubble, once more, I say, again, people don't understand. That they have tremendous earnings power, that they're well ahead of everybody else, that Blackwell is going to crush everyone. That's their new iteration. But, you know, David, look, we're used to this. We see these stocks go down, and the reason why I've said Nvidia, oh, and it don't trade it, is because it's inexpensive. In the same way that Alphabet made Google is inexpensive. And expensive. Why is that expensive? Why is that expensive? But it's doing each other. Yeah, I was going to mention Amazon as we kind of go through some of the MAG-7. Talked about Amazon a good deal yesterday as it approached $2 trillion in market value. You didn't quite get there. Amazon's barely down. It's backed off a tiny bit, but right near all time highs. It's barely down. Well, Andy Jassy should be on. But it's not cheap. Andy, you're on tomorrow in Squawk. On Squawk Box, I saw that. Andy is not-- remember, Andy is not promotional. He's very calm, giant fan, sorry, safe one, ours. But I do think that in the end, that stock's had a very big move. And if someone wants to sell that, I'm going to fight him. I might sell a name for my trust. I love this stuff. What are you doing? I'm looking through my notes to find something else to talk about. Well, you just have it in your head for everything. Well, North America-- I have lots in my head, OK? Are you ready? They're not compared with quite a number of voices in your head. Well, in gas. You really want to talk about oil and gas? People don't stop recommending them. I thought it was interesting. Yeah. I wanted to talk about ByteDance. It's a private company, but you know what? Sometimes we should talk about private companies here. They're enormous, private credit is enormous. Bloomberg reports that earnings before interest, taxes, depreciation, and amortization, my old favorite, EBITDA. $40 billion in 2023. EK? No, put a multiple on that. What did it say? $40 billion. Where does that come from? Yeah, that's amazing. That's what they're talking about. We talk a lot about TikTok here. We haven't actually discussed that story in a while in part because the Senate we thought might move very quickly to move its own bill or a companion bill to the House's ban on TikTok here in the US. Hasn't happened as of yet. But ByteDance has so much going on in the Chinese market in the form of Doian, which is morphing into an all-in-one platform, sort of akin to $0.10 WeChat and encroaching on, as we mentioned earlier, Alibaba in terms of e-commerce. ByteDance, amazing. One day, it will come public. I'm not sure it will. It's not going to come public here. But put a multiple on $40 billion EBITDA growing at that rate. I must be honest, it's that big. That was something that might transcend even the problems we have fitched down. One of it is one of, if not the largest, private companies in the world. That's incredible. I'm glad you appreciated that. All right, now you get to talk about a public company again, Jim. Go ahead. OK, I'm going to do that. I'm going to talk about-- From Notes? Isn't it in your head? Hey, the problem is I'm going to talk about Tesla. Oh, OK. Every day, the long knives are out from us. You just, when everything was going up, everyone was a fellow traveler. They loved him. Now that it's going down, he's Tri-Polar, which is really unbelievable. I think they're studying that at Hopkins. And I just find David, I mean, he's despised. I mean, it's incredible. Full self-driving. You know, here we got to, like, oh, I-- Nobody believes he's not full self-driving. Lithium is bottoming. Remember when he, like, divided one quarter? Like, the incredible rise in Lithium? Well, no. Lithium mining, they were-- yeah. He got that going. But I think when he blacks his sales, that's often-- I feel like he'd been warming up to the stock, though, a little bit of my problem. No, I'm just saying, look, what'll happen is Kathy Woodl will come on air. She'll use a 200 times earnings, $800 price target. People say it's the bottom, because it's Kathy Wood. And then you'll get around? Or Ron Baron will come on and say it's going to be a $4 trillion dollar market-- He's a fellow traveler at Amen Corner people. They always come on our air. They always say it's done going down. And, like, no one said me. If I said, Nvidia's done going down, and it doesn't-- I mean, they're going to put me in the stockade over here in the '55 wall. They got a nice safe downstairs. They could just put you down there, you know, way down deep. Yeah. You'd never hear from me again and there. No. But anyway, I'm just saying that Tesla, like, right now, it's on the other side. So everyone thinks that this unbelievable magician, brilliant man, is not no longer capable of coming up with anything. And I'd rather be an insurer. I'd rather be in Buffett with Geico. I'm not sure you'd rather be in the banks this morning as where your way to earnings later in the week. As you might expect, Bank America, of course, that bond portfolio is going to move up and rate. Yeah. They're doing fine. Because their long-term data bonds, obviously, are far lower rates. And therefore-- Yeah. And talk about the rails. Those are going to be up. Norfolk Southern, those are just one-way stocks now. So good proxy fight going on there. You ought to like, you've got to get into that one. Let's give people a quick look at the bond market, of course, because it has been a big move off that CPI number this morning. As you might anticipate, as I've said two years, perhaps a bit up more, let's see, where do we right now? Yeah, $4, $9, $4, $6 on the two-year over the tenant $4, $4, $4, $9, $5. Both yields, obviously, appreciably higher in part on the belief that, hey, that fed, maybe we don't see any rate cuts in 2024. We'll be right back. All right, let's get to it. Got time for a stop trading from Jen. I wanted to be able to bottom fish soon was Boeing. Morgan Stanley goes $2.35 down to $1.80. Production is slowing. The stock is getting hit. I wish I had something positive to say. But it's just time that maybe I'm doing apology for all the crap you gave me, and forgetting you out of Boeing. Coincidentally, that's why I did this at the end of the show. I went belt and ope. David's mother. I am apologizing. You got me out. I missed that 100-point move. But anyway, Boeing is still too early. But it does go back, Jim. The reason, of course, I'm referring to as a conversation we had some time ago, where you were talking yet again about all the pain, all the difficult things of Boeing, and yet you hadn't chosen to sell the stock. No, no, but now you were right. And I got out. I didn't make money, but I got out. David, I've got a company tonight that is a little off the beat track. Mine is a mushroom company. You've got a mushroom company on top? We've got a health care. Health care company. Little off the beat track. Tried to cheer people up, little. Mine? Mine bet. Yeah. So we're talking hallucinogenics. Yeah, and not the kind that come from chat GPT. Right. I mean, we can hallucinate, chat, or opening up new neural pathways. Well, I just think that people-- Right. I think people underestimate homeopathic-- Yeah, yeah, yeah. Underrest been homeopathic medicines. I thought it would be a nice diversion from what is obviously the gloom and doom that I don't share. They say you get to a certain age. A full trip, you've got to have somebody guiding you. It can be very beneficial. David, ketamine. Maybe you and I will try that sometime. Not the ketamine, it's the other thing. The trip for the nose. No, but get the mine bet guy. Why not? Tell me how-- Anyway, look, let's let your bed auction today. Let it come in, stop panicking. You don't know what your own cell cell, OK? All right, he's Jim Kramer. You'll see him again tonight on Mad Money. 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