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Welcome to Squawk on the Street. I'm Carl Kington here with Jim Kramer, a post-9 of the New York Stock Exchange. Faber has the morning off. Futures do recover what was a nearly 2% drop as Iran so far, not signaling retaliation for the Israeli strike last night. Oil is lower, yields lower across the curve as we wrap up the week with some blue chip earnings. A roadmap begins with Israel carrying out this limited strike against Iran. We'll take you live to the Middle East for the latest on the ground. Netflix, the biggest pre-market laggard on the S&P, despite posting a beat on the top and the bottom line. Tesla's on pace for a sixth straight day of losses. Now issuing some recalls for the Cybertruck over faulty accelerator pedals. Let's begin though with market reaction to Israel's retaliatory strike on Iran, Jim. So far, not a lot of signals that this is going to cause a conflagration. No, I mean, I took last night about what we needed mid-money of Bush, a crescendo of selling. At 10-15, we thought we had that last night. The fact that we now have decided that it wasn't important, or no, I'm not important, but we decided that it is less relevant. So we've come back up is, again, something I don't want to say. We have to have people decide that negatives are negatives, not that an avoidance of a negative was a positive. So I want to hear more from Richard Angle about Israel, but the fact is, is that we were down so much, and then we come in and then we're up. What are we up for? Why are we up? Let me have a flat. How about down a little? We don't get that. So it makes me suspicious of this opening again. Because people by the end of the day will say, well, maybe Israel wasn't done. And I think it's unfortunate. It's very hard to gain what's going there. But I will say that the exuberance that we feel every morning, based on flimsy evidence, it has what's plagued us. Well, the bulls would hope for something that Blinken talked about this morning, and that is this this journal piece that the White House is still actively working toward getting a deal with Israel where they talk about some Palestinian statehood and return for diplomatic recognition from you. But I look, I think that you have Netanyahu, who is more of a wild card than ever. And again, I don't want to do I mean, I'm not a political expert. I follow this one pretty intensely. But I come back and I say when it comes to stocks, you don't you have proposals throughout this period. And Netanyahu has not gone with them. So I mean, and Netanyahu has been trying to prove his independence. I think he needs history. I think he's back in his days when he was in full of it. In 1973, he's got to go over those five days where Kissinger convinced Nixon to resupply. And then he will understand where the hell we are. And I think it's it's very unfortunate that he doesn't seem to know history as well as I thought, where the where Israel needed everything. Nixon was against it. Kissinger said you have to do it. It's democracy. And the United States saved Israel. And anyone who disagrees with that just doesn't understand the goal and heights. So I'm not saying that he's a historical. I am saying that he seems to be ignorant of what happened in 1973. And it's going to cost Israel historical. Is it to you? Is it mostly about energy? Because Goldman today, again, we see Brent in a range between 75 and 90. Brainerd here saying we're going to we're going to make sure gas prices don't get out of control this summer. Well, I love the idea that we can control it. But I do think that Goldman put out a good note for for alumni, which is that markets may be worrying too much about overheating. And this is a David Maricol. This is the first piece I've read, which just says, okay, enough with the hysteria about inflation. The fact is there is what's he calls catch up inflation, which is about car insurance and owners equivalent. Right. I'm going to see car dealers. I'm going to Corvanna. Now they can they're into a quarter. But you said yesterday something really good, but you said car max is one that disappointed. They disappointed those prices are coming down. And it is this point because they're bad off. I've met with them. They're probably the best operator. And they're the only one that actually uses AI. So they had they actually had a sense of what could happen. And look, insurance is something that we all feel. It's funny. You have Jonathan canner and justice really pressuring apple and the issue with apple again is that the phones are so good that people don't switch. Well, how about the fact that if you switched insurance, all I would do is make it worse? But you know, they're not they're not savvy like that because they're anti mega tech. And the Justice Department is emerging. It's the one I'm now focused on. The other agency, we know the stance. They seem to be fine. They're consistent. The FTC, which one do you make? Consistent. Yes. But canner has taken on Google and he's taken on Apple. He's got Merrick Garland on the side, obviously the chief attorney general. But when I look at what happened with apple, if what happens with apples, it has to cut numbers will get that number cut. Then two to three days later, we'll say it's bottom. Then the focus will be on the other mega countries besides China. You're going to start hearing a narrative, which says, you know what, we got to start thinking about Brazil, Philippines, Indonesia. We got to start feeling about Turkey. And then, of course, we have to extrapolate India. But they haven't been able to tell that story yet. You mean as a supply chain? No. Customer base three years from now. I don't understand. And if they were to focus on the long term value of those new customers, particularly in India, younger customers, not unlike I want to talk about when we talk about Merrick Express, what people realize is it for the first time. And I will even go as far as to say proctors doing the same thing. For the first time, we're not as leaver to China as we think. And I think Wall Street is way, way behind the demographic changes that were silly. Where did Tim, you know, Tim puts, Tim, he puts factories where he wants customers. This man spent more time in Jakarta than we've seen. Now, you could say, well, wait a second. He capitulated on WhatsApp. I would say that he makes deals. He's always been pragmatic. But the pragmatic nature of Indonesia, a country of more than 200 billion people, growing like crazy, to me shows, you know, Vietnam, 100 million people. So you're talking about not just diversifying China's locus as a supply chain hub, but as a customer hub on the demand side. Our country is addicted to thinking that China is a winner in everything. Our inferiority complex in China is only second to the inferiority complex in China feel, Chinese feel about China, particularly after COVID, where they were given the opportunity to have a vaccine and they chose not to have it. I mean, look, Pfizer's had like the worst quarters ever, but men and men could die on my vaccine. Well, Proctor today, John Mueller on Squawk, Ted's relatively positive things to say about China quarter. Yes. And you know, I've got to tell you, but I see Proctor down three, and you could say I'm talking from the home team, because I'm talking about, because my travel trust is on the stock forever. You can send this stock down. It's not a problem. You can focus on beauty. Yeah, you can focus on children. But what I think you really should focus on is one key thing. When you look at the third quarter last year and the fourth quarter last year, you had the dollar overwhelming the cost savings. That has been the dynamic that we've suffered. And what happened this time, the cost savings exceeded how much is lost in the dollar. What people don't want to look at that? What do they want to look at? They look at the headline generated by AI, which is the revenues weren't that good. I mean, it's really unbelievable that you could get out of Argentina. Genius, genius, get out of countries where you're selling things for much less than you make it. And then you get punished down four. You know, I'll take the other side of that trade. Now, when it's down four, that usually means you got sellers will come in, they'll sell it to 153. Let's have it down to 152. And then you've got to buy a handover fist. Yeah, organic up three was a slight miss, as Jim said, pricing up three volume flat. Here's what molar said about China earlier this morning. Take a listen. China is down a bit as the market continues to struggle. But even there, we're seeing sequential improvement quarter to quarter. This is a sequential improvement story. It's not an absolute story. It's a relative story. And, you know, you got to do a, you got to parse the Q3 and Q4 to recognize the improvement. But the lack of history of how proctor data on Q3 and Q4 is sending the stock down four. People must go over the line by line of what Q3, I went over Q3, Q4 coming into today. And I was pleasantly surprised. And it's, by the way, it's SK2 that it's this problem. Yes, yes. And I, but you know, they're not going to, this new, I'm going to get the Gen Z and millennials when we talk American Express. But the Gen AI on proctor sends it down. But then, Gen AI, they're not looking Q3 and Q4 are the machines. And so you have this stock getting clobbered. And I understand, you know, you want to sell it the opening and one who's keen enough. The real, the hedge fund guys who are supernovas, they'll take that, you know, you'll buy it on Q3, they'll suit it, sell it down to Q1 52. Because that's what they do. They want to sell Q1 D3, they'll sell Q1 D3, and then they'll cover. And the individual at home is saying something must really be wrong in proctor. And I am telling you something's really right in proctor, which is that their costs are down and they didn't have to cut price. And that has been the crucial part. Go listen to the conagricle. Go listen to the calico. Go listen to the, you can listen to General Milskow. If you didn't have to cut price, and your prices fell, whore melt, and your input funds, your stock went up. Procter's no different. I'm not going to disagree with the opening because I'm never going to disagree with the guys who are just banging it down. I want to own that thing at 10 of 10. Well, watch it after the open. Nice, 7 percent like 11 of 10, no. Meantime, let's do get more on the Israel-Iran conflict. NBC's chief foreign correspondent Richard Engel is on the ground in Jerusalem this morning. Richard, the reports here sound like this was carefully calibrated. Do you agree? It was a very limited strike. And if you look around the streets of Israel, you would hardly know that anything happened. There have been no instructions given to the public for people to take shelter. Traffic is flowing as normal. People are out. People are shopping. The airport is open. Airspace uninterrupted. And that's a pretty strong indication that Israel doesn't expect an immediate counter strike and try to calibrate its response. And what's interesting is Iran is also downplaying this. We've been talking over the last couple of days how Iran has been making threats, threatening fire and brimstone that if Israel attacked, it would immediately respond with a ferocious attack of its own. But instead, what Iran is saying is that since this attack on the airbase in Isvahan was so small that it's a sign that Israel was intimidated. That Israel was too afraid to do more and therefore painting it as a success for Iran. So if both sides can walk away feeling that this was a victory, that is a best-case scenario because that is how you de-escalate all conflicts around the world. You give each side an off-ramp. So this is not over, but things are looking like we are heading potentially toward a de-escalation of this part of the conflict, of the direct Iran versus Israel head-to-head. We attack your country and we'll respond by attacking the other directly. Okay, Richard, first, Jim Kramer. I want to salute you for unbelievably neutral reporting and for also unbelievably situation once again where your life's in jeopardy. So it's unbelievable than you are. But I want to talk about targets. Thank you. No problem. You don't get it enough. Why don't I just tell you? Target. What about that? What about that target in Iran and who's there? What's there? And is that not in itself a sign that they're not going after obviously really populated areas that could have caused a terrible, terrible tragedy of life? So this was a military base in Isfahan, just outside of Isfahan. Isfahan is in central Iran. It is a historic city. It's one of the most beautiful cities in the world really. Certainly one of the most beautiful in Iran. There's an expression in the country, Isfahan nous jahan. It means Isfahan is half the world and contains half the world's beauties. It has arches, it has mosques, grand bazaars, a wonderful place. But it also has a military industrial component. The Iranian enrichment site is there. Natanz, the biggest one in the facility, that was not attacked. It was not touched. In fact, Iranian TV put out pictures today showing the main circle in Isfahan with traffic flowing as normal. Iranian state that television anchors were telling people that things were that they should live their life as normal. One saying that the Israeli strike was no big deal. They showed life continuing in that country. So it seems that Israel chose that because there's also a missile production facility there that produces medium-range missiles. When Iran attacked this country, it used ballistic missiles that fired, they were almost all shot down, but that they were fired here. So it seems like Israel attacked a missile production area in order to send a message to Iran, A) that it can get through its air defenses, and B) you target us, we'll target your military facilities. And by the way, Iran's main target in Israel was also a military base. Richard, street's listening closely to you this morning. Thanks for that. And hopefully later this morning or today in the days to come, we can talk about maybe longer-term diplomatic pushes. That's our Richard Engle in Jerusalem. Do you still have journalism? I mean, what journalism was? Still to come this morning. Netflix slumping despite that subgrowth, details on that straight ahead. A bunch of calls today. We'll get to AXP and Slumber Jay and some of the other names making news in the financials in particular as futures now mixed. Stay with us. 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, we are committed to helping you invest in a brighter future for the next 90 years and beyond. To learn more, go to Janice Henderson.com. 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. Specialized 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. Flix is the biggest pre-market laggard on both the S&P and the NDX after issuing the softer revenue guidance in the street. Had been expecting, of course, that news overshadowing a quarterly beat including 9.3 million additional subs to the company announcing plans to stop providing sub numbers beginning next year. This is co-CEO Greg Peters on the call. Each incremental member has a different business impact and all of that means that that historical simple math that we all did in a number of members times the monthly price is increasingly less accurate in capturing the state of the business. So this change is really motivated by wanting to focus on what we see are the key metrics that we think matter most to the business. Best start to a year in terms of subs, Jim, since 2020. Yeah, okay. Let's get started. My travel justice is not an effort, but an amazing quarter. And again, I keep talking about using this word parse because we seem to be a historical. Those are the two things that are my thing. This is a great quarter. I don't care. I'm going to give them the benefit of the doubt about their decision or about the way they're going to give information. The essence of this story this time was a verb that they used. I've never really used it myself. You can Google it doesn't really come up. Eventized. They're eventizing their business. Now, there was a adjacent bassinet on Frank Collins always excellent show talked about was asked point blank about the Tyson fight and whether it would be good. And he said, yes. I think that these people are creative. I think that they keep growing everywhere. I think that when you have when you have people just read the darn release society of the snow. Okay. This is a movie 98.5 million views. Now, what does this mean? Throughout the quarter, throughout the discussion, it's about how films breed viewers. Well, let's talk about that. So you may think that their projections, their forecast is downbeat and they did. There was, you know, some people are saying, listen, I want to be a bad guy. I'm not going to just dismiss the body of work that these guys have done and how many more people they can still take and everyone wants to find fault. Now, let's talk about 35 initially. Everyone wants to find fault when the stock is down 45. Who sets it down 45? That's like, that's like the people who said that we're going to have six cuts. Hey, there's a six cut crown right down there of down 42. Now down 42 means down 46 again. This is another 10 of 10 story. Nobody gives these guys the benefit of the doubt. This has been one of the greatest stories in history. I think, I mean, the can of cord downgrade today says stocks up 90 percent in 12 months. Well, good. You know, the good stocks go up. Let it come in. I mean, no hurry. The stock was up huge. People were asked about what to do with yesterday and I look, I wanted what have they done? They've accomplished the almost impossible. They have an ad tier and they don't even have all the money that's going to be made on that. Yeah, add membership up 65 quarter on quarter. Yeah, still still gunning. Yeah, the 10 percent penetration is all they have versus what they could have the number of countries that are involved. Look, it's an international success story. All anyone wants to do is call a top. That has been the prevailing was call top, call top, call top. Why don't they actually read beyond the second paragraph of the of that bizarre YouTube stuff which you don't. Let me tell you why that stuff. You know how to get that stock up and they won't do it. Go do with Jack Hartham, the finest CFO in the landed which said, you know what, we got to split the stock. We got people who want to be in the stock, we got workers who want to be in the stock and they were announced to split. You know what would happen? People, they moved me up 43. I mean, that's how like pathetic these opening quotes are. The other media story to fold in here is the Times piece on Sony and talks with Apollo on financing a Paramount bid. Does Sony have the money? To the Times. Anyway, it would alleviate some financing concerns. Yeah, yeah, good. I went to Champions League and you can have the rest sold to you. Can we just go, I mean, honestly, Netflix, so the sellers are using chat QPT, right? I mean, because that's what it has to be because you put a new JAPY D. It talks about weakness. If you actually read it, it talks about strength. Selling is a hallucination. Yeah, I think in the end, there are survivors in Uruguay. Uruguay. I mean, there it is. Okay. You got a Uruguay movie. You're a quiet. I didn't know they made movies. I think you're a guy like you have a good bank down there. I mean, what the heck? Yeah, and amortize that all around the world. That's my point. You know what, I like Prell and I like society, you know. Well, get crazy. It was mad dash countdown to the opening bell. Pretty busy Friday shaping up in the future. As you know, have recovered a lot of lost ground. Back in a moment. Welcome to the Canva guided meditation of stress at work. Impending deadline? Generate Canva presentations in seconds. So fast. Brainstorm got too big. Summarize with AI in a click click. Riders block. Release with Canva magic right. Stress less and save time at canva.com. Designed for work. Let's get a final mad dash for the week. Sometimes you have to go a little deeper than just looking at the earnings per share. J and J won a very big case last night. In the talcage, you remember the planters are alleging that J and J knew that there was a asbestos which causes cancer in talc. Now that view by a firm called Beasley Allen, they have not won a single case. This is, and by the way, just so you know, J and J has been winning these cases and doing a parallel effort to be able to settle everything. What's important here is that there really still no evidence that there's a linkage, even though the planters constantly say, and they have a lot of pain of people who say, "Now we're going to see Abbott Labs," reporting the bell. Abbott Labs stock was going higher, and then it was mentioned about there was yet a competitor who lost a formula shoot, because there was a terroratizing with the baby. I'm saying that maybe the planters have reached a bridge to the bar against corporate America, and maybe a supreme court one day will agree with it. Well, Wolf was on squawk on Tuesday and said they're going to look at foreign financing. Of the planters, though. Yeah, I mean it's time. It's time. J and J and J are very informed to be educated, passing the tax on the cash tips of the planters. There is a planters firm that is very good, which is the Seager Weiss, and I don't want to faint. I don't want to just miss them. They're very good. Jim mentioned, Abbott, they are at the big board today, along with Buffalo Bill's safety, and Hart-Mate's ambassador, Jamar Hamlin, doing the honors here. Everyone remembers that hard-sopping moment on the field, and everyone now remembers there he is. Great to see him at the Nasdaq. It's Golden Matrix, a gaming technology company. Jim, I know you're itching to get to American Express. A bunch of headlines about marketing spend and charge-offs and some weakness, they say, at the small and medium-sized business. By the way, Steve Square would admit that. Again, if you want to take a long-term view of what matters there, is the incredible funnel they have. They don't have to pay as much to be in the opposition cost you're very low, because they advertise on an accredited karma. They advertise where they have to be. America Express has been ridiculed. If you go back to it, can I? I've got enough ministry. You're showing your age. I got enough of an instrument. If you go back two quarters ago, there was a belief that, in October, Steve said that, look, spending was a little bit lower on restaurants. This stock dropped to 160. Then it's been a straight shot. Why? Because the quarters were really good. This was a very good quarter, because once again, he's getting Millennials Gen Z. So you're talking about a 40-50-year lifetime value of a court. If you're in the credit card business, that's what you're trying to go for. On your card, what year does it say when you join? 1981. I'm 90. I remember getting it. My folks thought that was the sign that I finally had gotten living the most. You're living out of my car and making a couple of bucks. Look, Steve's career is a remarkable operator and also a regular guy. Unfortunately, a jet fan, taking people to do that. I think that this was just another quarter in line with many good quarters. Yes, restaurant, not as up as much as I want, but all of the, every trend's good. And by the way, his losses, that's what I'm focused on. His losses are much lower than say Discover. Much, much lower. He did say that Discover Capital One, they've got a lot of work to do. Yes, they do. Charge off still. 2-1 is a shade below prepandemic still. Right, but I would point out that this is a man who has reinvented this company and has taken it to being the mindshare of the people who are in their 20s, who are who you really need. It's incredible because as he said, he walked me through this one. Jim, in their 20s, they get the card. In the 30s, they start using the card and in the 40s, they start taking the points and they use the kind of like one of my wife does. She's got that stack and they don't go to me. It's incredible. The bill goes to me, but those little things go to work. All the rewards, yes. That's exactly how it works. Jim, the other trend regarding 5th, 30th, Huntington is basically provisions in line, guidance unchanged. That's sort of the running theme this morning. You want the net interest income to be good. I actually don't want the net interest income to be good. I want the business to be good and that's why I continue to like what Charlie Sharff did at Wells Fargo, where he has reinvented the company and made it a fee-based business, so he's off the treadmill. The treadmill at the fifth third had very good net interest income. We're going to get off the treadmill as part of a normalization economy and when we do, you want companies that are doing a lot of business. Not necessarily a lot of lending, but business. That's the new Wells. And Wells, by the way, and by the way, you know, the informatica that C-R-N is pursuing, I think, is pursuing. They once told me, "Listen, we have the software that detected the fraud that they were doing at Wells Fargo." Well, I got to tell you, Charlie Sharff has been paying the price of that fraud, but it's almost over. Who knows how well he can do it. It's really a bank and not a fee machine. He's going to, the fees are going to accrue soon to the shareholders, not the law firms. You've been saying, "Watch the fees, not the interest income." We have to go back to remembering what makes a bank stock go up. It's a business of fees, all right? Now, Jamie Diamond turned it into a referendum on the world. Now, Jamie is just too existential. I got to get to him. He's become too existential. When you did Philly, when was Philly? You're interviewing Philly with Jamie. Oh my God. You're going to 6% of your view. It was a little while now. It was February, February of two years ago. I don't know. It was the opening of a... He still thinks like a bank. Look, I love Jamie, okay? He used to think I hated him. Never true. So did Charlie. Somebody hate me. I hate these guys. But I need... You know, Diamond's got to start thinking, "Listen, let me talk about how well the bank's doing. Not let me tell you about how the world... The world's doing. Because when you interview anyone about the world, they have a similar conclusion. I don't need his view of the world. I mean, it's pretty much like everybody else. Jim, in autos, there's a lot to get to. There's the end of this VW, UAW vote. We'll see what that means for the union. Sean Fain of the Time 100 list, as you saw, I'm sure. Yeah, maybe I'll sit with him. And then Tesla. The Tesla recall. The Tesla recall. I mean, look, all it is is acceleration, which could cause a horrible crash. And unlike some other... This is a regard to the accelerator. Yeah, the pedal stays down. Look, it's still bulletproof. It's a ram-and-run car. I appreciate that. Boy, you know, Jonas, I gave him a call. He doesn't take my call. I love that. But the work he's doing now about where these stocks are, the bottom 10 and the S&P at X Financial, of course. And you're seeing GM and Ford. I mean, Ford should be buying back every share, for heaven's sake. GM is... My actress is the only... My actress are really... Well, it's just... A sub-optimal company. But GM is the cheapest stock in the P... My PE. Mary Barra is doing... Hey, Mary Barra's at dirt, trucks. Dad, the accelerator comes right when you take your foot off in and it doesn't keep going. Hey, that's just... That's a plus. You got the good torque, you know. We are going to get Tesla on Tuesday. Jonas did say yesterday, situation could may well deteriorate further. Is the company exiting the traditional EV business at the margin? It seems so. Yeah, it is. I don't... You know, it's very hard to criticize the genius. You know, I don't want to be the guy who says, "You know what that Mozart, that half-year-in-cheaper, forget about..." You got a guy who isn't genius. When you speak to his competitors, here's what they say. But, you know, he could pull a rabbit out of a hat. So, you never know. I don't know what the rabbit is. I tell him, I mean, I like to know what the rabbit is. I had a rabbit on Wednesday night. Really? Yeah, I took that over the pigeon. That's a lot of... What a Hobson's choice, you know. We'll see what happens when we get on Tuesday. A lot of news and chips. Ramondo's going to be on 60 minutes Sunday. A nice profile of how she's made commerce, a pretty powerful agency. Out of nowhere. I mean, I remember when Commerce was a place that issued a lot of things and you got really, really terrific dinners. Now, it's the locus they say of national security, job creation, manufacturing. And then Jim, Nvidia's on the cover of Barons this weekend. Oh, kiss and death. And it's a piece about competition coming. Look out. Here comes AMD. They won the first round of AI. We'll see what happens now. Look at who comes AMD. You know what? Look, Lisa Sue would tell you, Lisa Sue, congratulations, Wendy, on work for the Franklin Institute this night in Philadelphia. Lisa Sue would tell you that her chips do not offer the software. They're just Harvard. By the way, Intel is 100% Harvard. But that's what matters. And when you speak to Nvidia and go to the conference, you realize that the giant leap that Nvidia has over everybody else. But you know, with Blackwell, it's going to be unbelievable. The long lives are out for Nvidia ever since GTC. Remember what Nvidia did between July and December of last year? It did nothing. And I was, I remember being ridiculed. By the way, I walked into someone this weekend again when I was in Antigua saying thanks for jamming me in that Nvidia. Well, sorry, sorry about that jam of mates. I made that guy. You made it that guy. Yeah, I gave him a mate. I gave him a checkmate. He made it me. I get checkmate in him. There is some weakness in in semi's and tech. SNCI's. Yeah, what? S M is crushing it. Yeah. See that? The fact that, I mean, when you talk, look, I say, I say own Nvidia, don't trade it. But I'm not saying buy it right here. I mean, let it come in. Same thing with Apple. I think my price target Apple is 160. How do I get 160? Because that's where I think that people just say I've had it. Sometimes you have to cycle lives. We think when people have it, maybe people have had it when it gets to, Nvidia gets to 790. I hate this up opening car. Oh, I hate it. I just hate it. Yeah. Yeah, we're circling around 5k here. And what's the what's the thesis to buy today? Because the missiles didn't hit X. I mean, I need thesis. I like proctor. I like M. Netflix. I like discounts. I like discounts. I don't like premium. And people may hate the semis, but one day they're going to realize that those are the guys that have the good quarters. By the way, Taiwan, semi, it killed itself. It's not up instantly to three points. But then they said PCs a week. Well, can we look at that? If you go to HP, but they tell you the PC where every fresh cycle is going to be great, because you're going to get a button that's an AI button. So I'm not itching to buy a new PC, even though my TC now, if I press down the letter T say I get three T's, I will wait because I want the AI button from Microsoft. Well, their commentary was kind of confusing because they cut guide on industry, but kept their own growth pretty much intact, right? Funny, huh? That would be good case. Look, ASMLF was this appointment. I want to hear. Let's just in general, Mundo is so good. And Taiwan, semi is really the one that's amazing. I think she will do the micron. I can't get bearish on chips ahead of the biggest refresh of the cycle in PC history. I can't get bearish on chips when I listen to Michael Dell talk about what's going to happen in the future. But I understand people don't know what they own. They don't know whether NVIDIA is my father lost all of our money on a company called National Video because they had the best picture tubes for TV solid state. NVIDIA is not National Video. It's a real company that has a giant, giant refresh that is so amazing that it's going to pass make it so that Intel left and does AMD left and does. But you know, people look at the stock and then they format reasons why it's going down because that's been the way since we bought it in October. It's like, that's stocks down. Let me give you a thesis of why it's down. I'll give you a thesis of why Proctor Gable is down because people are selling it, but they have not bothered to do the work. And it's very frustrating because I know it's against the grain of my proctor. But I need you to think that about a dividend or risk regret that it's going to have that finally outran with costs that went down and prices that didn't. That's what we're looking for. Cost go down, prices that didn't. That's General Mills, okay. Just look at the trajectory of General Mills. That has been the stock. Hey, by the way, the only reason to worry about Proctor is because Paul Pullman's plan to reinvent Unilever in order to be able to be the most ESG company world killed. Plan killed. New rules. And the new rules are, hey, listen, what we're going to do is what's right for the shareholder. And we're not going to be doing what's right necessarily for the for the planet. Back with a little more plastic, no longer hiring disabled like they were. They they were committed to a path under Paul Pullman that did cause under performance. And now they're they're scrapping that plan. And that's the only reason why you would be negative on Proctor because that is the principle. Right. Well, not every company has costs falling so the downgrade of Hershey's today over at Edward Jones on record Coco. Right. I mean, Coco is parabolic. I think that Coco is a history. Coco, what 20 years ago, had one of these moves and it was parabolic and then it crashed. That's one of the reasons why no one is biting on the big decline in Hershey's. It's if it was really bad, the stock would be at 150. I don't want to own Hershey's because I don't like that particular portion of of the formula because I think of the package goods because I still worry about the Lillian Pact, PLG. I mean, look, if you can't get any zepfowl, what happens when you can? Yeah. Meantime, Ulta, Jeffries cuts to hold on. Jim, I know you're no surprise. Increasing competition from Sephora. Look, Sephora's better. What I'm going to say. And I love Kimball. Kimball. Hey, by the way, let's understand. There is no slowdown because I had L4. There's an acceleration. The problem is Kimball has to recognize the day of it. Not only is that Cole's has a CEO who, if anyone sits down with him and thank you, Matthew Vosters, setting up a dinner with me, Tom Kingsbury, he will sit there and figure out what it needs to kill the competitors and then he will do it. I went to a revised Burlington after he took it over and it was like, buy one, get seven. Pretty good. Well, watch out. DJT Jim is interesting. A couple of severe bounces the last couple of days as we're back to 35. Of course, looks like we have the jury set in the criminal trial. We're looking maybe for opening statements on Monday. Is that a referendum on Pennsylvania, Michigan, Wisconsin, Nevada, Arizona? I mean, I always feel like that this is that those are the ones you need hundreds, hundreds of millions and you have to figure that pretty soon with a captive board, Trump will be able to cash out. So if you wanted to give to that campaign and I'm certainly not urging anyone to give to any campaign, it would be better to give to DJT than it would be able to give directly to the party because that's what can be cashed out. If, once they get the, once Trump is able to convince the board that they should let him out of the lockup, this is stock so hot. In that similar vein in media, you mentioned briefly, Jim, this journal story that the Chinese have asked Apple, told Apple to remove threads and, and WhatsApp from the App Store in China, latest censorship demand. Well, Tim Cook is nothing but pragmatic and that's a pragmatic decision. I think that it hurts what's, you could argue it hurts what's that meta more because it shows you that what, you know, the power of the government against WhatsApp, but I think that WhatsApp's not even including the valuation of meta. Like I said, Apple's just going to go down, you know, Apple could come out and say business is better. People say, I'll sell it a couple, I'll sell it down three. I mean, this is one of those situations where until Luca Meister says the CFO, we're, we're getting clobbered and XYZ, people keep selling it. Right. Zuckerberg did unveil this chat bot, which is intended to challenge a chat GPT and Bing and Gemini and, and talked about AI investments. Take a listen to Zuck. We're investing massively to build the leading AI and open source in our models responsibly is, is an important part of our approach. The tech industry has shown over and over that open source leads to better, safer and more secure products, faster innovation, and a healthier market. And beyond improving meta products, these models have the potential to help unlock progress in fields like science, healthcare and more. You probably start toying with it. It went once it comes. Yeah. Well, look, I mean, he's one of the videos largest clients. Of course, he said ahead of the time 100, which is now becoming a referential media. I he did say incredibly positive words about Jensen. By the way, if I were a customer of Jensen, I would do that too, since you can't get old chips. Why do people understand that you have to develop your own chip? Because Jensen can't make the chips fast enough. I think people say about 300,000 of the current iteration. He will take anything, you know, this guy would actually buy the whole, I think he'd buy the whole line. Everything that comes off the assembly line of Nvidia. One of the reasons why I swear to Nvidia is because I like companies that can't meet demand. And by the way, the housing companies can't meet demand. And one of the reasons they can't be demand is like, you get a firm like KBS, and they commit to a higher giving and they buy back stuff. You know, they're not doing building homes. They realize, they realize that their stocks are better. Investment Doug Yearly started that at Toll Brothers, where he just said, listen, I'm just going to go buy my stock because it's it's the cheapest way to buy that much better than putting up spec homes. Yeah, that's one of the home builders could go up in an 11-height cycle. Really confounding Jay Powell who didn't see that. I mean, Goolsbee would argue it is the high rate that is inflationary itself, because it reduces supply. Goolsbee is a very practical man. That's totally true. I think he actually looks at what the home builders are doing, which is to say, I'm not going to go home right by stock, which is by the way, the first time ever. Yep. Jim's right though, a little bounce here at the open downs of almost 200, back to 50-16, check bonds as well. I think Goolsbee actually will be speaking today at SABU, but that's pretty much it and the way it fed speaking data today. Maybe they're doing that stuff where they don't wear Fridays. I don't think we're saying we're 40 days a week. The Fed's moving to a four-day week. Watch this great stuff with that year of white moving. That's why they should do that instead of talking. Ten year four-six. Netflix remains a story today. We did get that downgrade out of Canacord. The interesting upgrade though comes out in Needham where Laura Martin, who's had a hold for two years as the stock's doubled, finally goes to buy with the target of 700, talking about how Gen AI will benefit this name in particular. Right now though, down about 8% as they do withhold that data on the subs in our poo in the coming year. We'll get stopped trading with Jim in a minute. Let's get to Jim and stop trading. There's a stock that keeps going down that should be long-term going up, which is SLB, the old slumber's ace down 4% for the year reported another very good quarter. They're talking about, actually I would say they're talking about being jubilant. Exciting. This is why usually they don't hear. We have an exciting start to the year and I think that they are and I think that that's the stock. If you want to be able to buy an oil company other than Conoco, Chevron, or Co-Terra, then look at SLB. It's not bad. It's not bad at all. I'm just looking at the names we'll get beginning Monday. Verizon, Tuesday, Tesla, Texan, Wednesday, Meta, now, IBM. Of course, Thursday is the barn burner with Microsoft Google. Okay, so let's take this. I think now Microsoft and Google are going to be good. I think Google actually will be good. The beginning of the week might be a little soft, but we can handle it. And by the way, Verizon is going to have a really really good number, second time in a row, because Hans is really figuring it out, which is good for him. Yeah, we'll be busy. Oh, by the way, Nordstrom. Are we going to see the take privates? Yeah, don't you love that? I've got here. Nordstrom rejects initial takeover from the Nordstrom family, $50 to share in March 5th of 2018. That's the gang that can't shoot straight. I'm sorry. That's who Tom Kingsbury. We were beginning to make a list after Endeavor, 23 and Mise and the mix now. 23 and Mive. Yeah, I mean, they're going all healthy. I know it's a really horrible article in the journal about them. How about tonight? Okay, so I have one of my most exciting companies, a company I bought a car for. I bought it. I didn't like it. I returned it. I mean, it was easier than team. It was easier than returning something to Marshall's, which makes it pretty easy. It's easiest to turn them to Sears, which remember that you can take a hammerback that you own for 10 years. And then John Holmes, I mean, this is a company that does aerospace and anything that we can find out about aerospace is important, including the black hole that is bowing. Tough week on the hill after that. Yeah, I keep thinking about the B-29. And my father was, oh my god, it was all bad. It was all zeros. And then one day, the B-29 appeared. And everybody clapped. And they said, maybe we'll win the war. They ought to think about that, if we'll go back to that period. Jim, good show. We'll see you tonight. History. History matters. But it'd be the third quarter proctor whether it'd be 1973 or whether it'd be 1943. A bad money, 6 p.m. Eastern tonight. When we come back, warden's Jeremy Segal will get his take on this market environment in a minute. 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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