One day after rate fears weighed on stocks, Carl Quintanilla, Jim Cramer and David Faber discussed market reaction to the Fed's favorite inflation measure: March Core PCE came in slightly above consensus forecasts on a year-over-year basis. The anchors also engaged in a wide-ranging discussion about Alphabet and Microsoft lifting the tech sector. Both companies posted Q1 beats amid their AI push. A CEO doubleheader: Micron's Sanjay Mehrotra joined the program at Post 9 to discuss being awarded up to $6.1 billion in CHIPS Act grants. Chevron's Mike Wirth offered his take on earnings, oil and natural gas prices and his company's deal to acquire Hess. Also in focus: Snap soars, Intel tumbles.
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morning core PCE mostly in line lowest year on your number since 2021 bond yields are lower across the curve romance gonna begin with big tech though bouncing back alphabet and Microsoft both up sharply on their respective beats plus the Biden administration is awarding micron six billion dollars in federal grants this to boost production of chips in the state of New York and Idaho we're going to discuss all of that with micron CEO he's live here at post nine and the oil giants Exxon and Chevron both posting lower first quarter profits Chevron CEO Mike Worth is going to join us that'll be later this hour we of course will go over those results let's begin with the markets and this morning's inflation data highly anticipated Jim not just core PCE but best couple of months on spending in about a year look at this is a a front seat back today versus the what we got I wouldn't even think I'm gonna go as far as David I'm going to mention somebody you tell me if you agree pang loss Pang loss pang loss in number pang loss in number that's where you're taking the SAT that's where we're starting to show today what on this Friday and late April I lost man okay get me pang loss you want to explain that to everybody else because we have the bonds are right I have to tell you car last night my career I mean I'm like sending a note to Ruth poor at the middle listening you know fantastic when we wanted she's alphabet David yes she's out of the gave us not only an unbelievable blowout number but they also gave us granularity they told us what's going on it was joy which I left that time when her dinner was Sarah hey daddy like that dropping that and it was just incredible that was one of the greatest conference calls and then Microsoft blows alphabet away with how great it was doesn't really does Microsoft blow alphabet away really kind of you think so I just think the the increase there is just extraordinary the increase well because the use of AI the increase being what the well just the amount of Azure that upside surprise the upside surprise was remarkable because it was both top and bottom line and Amy Hood who is like never a fusive I thought came in and kind of just said all right this is ours give me the ball and I thought it was a great quarter what can I say and then by the way snap I mean I know we're small but I think you have my man from snap we do have Evan yes that's all that good no you didn't mean I know it's not big but we had a night last night about AI David that tells me it's real well the spending is incredible while you were at your fancy dinner I was just home watching the next lose but reading those conference calls and the thing that stands out of course in both Microsoft was how badly the sisters played in the first half uh no it was uh how much they're spending how much they continue to spend this after of course meta took up a guidance on its capex to what could be even as high as 40 billion though I know people don't expect it will necessarily go there during the year when you're son Jim roter but we're talking now 50 billion from Microsoft potentially somebody on the call asking could you be yourself spending a hundred billion dollars and they didn't really say no when that's a chat to who it's all Nvidia right and who is on 60 minutes on Sunday night I don't know because it's Friday Jensen Jensen is going to be on Benji himself oh vermondo last weekend and Jensen this weekend come more of a business show yeah to be learning maybe you can do a good business interview but that's what what occurs can be fabulous oh it's correct to be terrific interview but I just think that just call what what this said was I understand exactly why Zuckerberg has to spend the money because this is an arms race who has the best uh AI who has the best interaction with when you speak to AI and right now i alphabet surprised you seem a lot more interested in this than core pce core pce yeah we tried we tried to lead with the core pce you came up with a word restructure that nobody really knows what the heck you're talking about and then you get on forget the pan gloss okay I mean everybody's like I forget it um it was it wiped it out in the sense that we no longer have to be as concerned uh I will go so far as to say let's say President Trump elected uh I did keep saying you know what Fed knock yourself out as opposed to the New York Times story but or the Wall Street Journal story which basically said that no interest rate moves we made without him this number was good enough to make it so that pal is now able to say if things don't go our way we can cut it we can because it was not stagflation that was an amazing story uh it's not stagflation that's what happened we took stagflation off the table there oh so lasted for uh less than 24 hours because we got rid of the stag or the flation um the stag more the stag yeah than the flation tag got it yeah okay thank you for that analysis why do you hurt me michael um can we just go over for a second what happened here sure what happened okay so we did have this is what happened this is why i'm going to drop the panel us all right thank you uh i'm talking more Voltaire okay perfect yeah no we're going to do it in the original French no actually we're going to do about much much we're going to do raspous we do much you do about nothing that's what that was okay that's actually Shakespeare mixed with yes i'm aware all right so here's here's what's going on march was a week month and that's why i'm not word march was a week month and we're getting that from a lot of different companies that say you know like a jb hunt march was a week like all the transport separate you're not separate you're specific because they have precision railroading do you see that number uh by jim vetta yeah your partner your pal we we got uh we do have a downgrade of night uh today jim we got a downgraded cat on the notion that the business is operating well but looks too flattened in the near term well because march was weaker and it's hard to get a grip on why march was weaker because you have so much infrastructure money coming in so i was surprised but i know that there wasn't a uh by the way they increased their target to 350 well i mean yeah you got some of these guys were bears at 208 they were really terrible but i i just think that what's happened quarrel is is that wheat is that it's the jb hunt which is that you had a good january you had a spike in february and then you had a decline in freight it was one of the that was one of the most amazing conference calls ever in terms of like a realization that march just got weak and what people say it was it was the sixty basis point increase really really hurt everybody other than housing because housing was offered the equivalent of a variable rate deal so the move up in interest rates during really worse yeah uh no there was no right there was there i've heard this we talked about this now for a couple of weeks because we've both been getting similar data points from people well i think in terms of deceleration through march okay the question is has it continued yes april's just okay just okay uh now look we'll hear i thought that when you retweeted doug mcmillan it's the u_s chief actually john fernor talked to abc news from walmart yeah now mcmillan did say both kasco mcmillan said and that was that rich glande used retired it was like the best cfo rich glande was a cfo of kasco right and they both walmart were talking about walmart and kasco but they both said listen we're going to hold the line on inflation now you know that's 200 million people that we're talking about that benefit uh doug said this someone may have money for the receipt said listen i think we can hold the line so if you can have check inflation uh particularly at the food level uh which we've been kasco and walmart you're really left with and you don't have to worry about auto because we know i mean i met with car vinyl last week and finally the used cars are coming down we know that from car max that leaves shelter and shelter's hard to get around because of uh the 10 million new people have come to the country uh it's also because it's just the building didn't occur that we thought we it just didn't occur but if it's just shelter then the american people are going to get lower rates some point this year in the back half of the year you think yes because shelters shelters do will it's doable i mean you can't put things up right now but a lot of the places a lot of places started ready for covid and they're going to come online in the next six months that could help shelter even though david no one's building more houses and they want because they all build to spend no one builds just like hey you know what we'll put up a lot of houses and see what happens they don't do that anymore that's why toll had a good number so i pulled data good numbers by kbh had a good number so i had a good number right that has been one of the features of this last couple of years and unexpectedly is the strength of the home builders they have discipline even with of course a significantly uh enormous what five or fifty basis point rising rates there's look we're building half as many homes as we did when we were a country of a hundred fifty million people so we're underbuilt we're underbuilt we're housed you're going today oh yeah it's a big friday here david stave you guys look great in those nice ties beautiful you should wear t-shirt to protect the shirt a t-shirt yeah oh yeah sure yeah it keeps a real dope t-shirt guy you always put you know i learned that a goal but they sent me home in the first day they said what's your t-shirt i said that might be a you don't work here without a t-shirt i'm learning too much about you i gotta send you 21 then they said did you go to send me 21 yeah when we come back uh as uh jim and david mentioned my crimes chief san jamerotra on the billions his company is set to receive in this chips act funding he'll join us here at post nine meantime pre-market looking pretty good although dow remains on pace for the worst month since september of 22 don't go away for more than a decade comcast has been committed to bridging the digital divide and connecting millions to affordable high-speed internet but the barriers to get connected go well beyond affordability through project up comcast is committing one billion dollars to reach millions with digital skills training resources and opportunities needed to succeed in a digital world project up building a future of unlimited possibilities learn more at comcast dot com slash project up the spirit of performance defines acura and now it's electric introducing the all-electric zdx accuracy most powerful s u v yet while what powers their cars may change the energy that makes acura never will crafted using the same formula that brought them electrified supercars and multiple emsa championships the zdx has tracked tested performance that packs an energy all its own with a premium bang and olives and sound system and up to 313 mile range on a single charge and a type S variant with an estimated 500 horsepower the zdx is everything they said electric could never be it was built with the driver in mind just like acura has been doing since the beginning we could talk all day but the only way to experience this electric performance is to drive itself unlock the energy and order yours at acura dot com six point one billion in chips funding paired with 125 billion from micron to build these facilities here in New York and near micron headquarters in Idaho and i you know by the way it's been mentioned before it's the single biggest private investment ever in history of these two states the white house and asking preliminary agreement with micron we're going to come you up to six point one billion dollars in chip sack funding for the building of new plants second largest chip subsidy in the nation and uh we are so just thrilled here post nine that micron CEO sanjay first of all congratulations this is a remarkable piece of business because you never left the united states begin. Jeb great to be here on the show with you all in person uh yesterday was definitely a historic day 18 months ago we were in Syracuse announcing our vision for manufacturing semiconductor memory here in the u.s and yesterday the president was back there with us and we that vision is coming to reality with this 6.1 billion of grants we will be building fabs in Boise Idaho as well as Syracuse New York with 50 billion dollars of investment through 2030 time frame so this is an exciting time and bringing leading edge memory semiconductor manufacturing to the united states are you talking about doing high bandwidth memory you know which when we go back and forth this is the most cutting edge data center chip are you doing high bandwidth memory and Syracuse and item once those fabs get built they will be absolutely in production with leading edge memory high bandwidth memory absolutely uses leading edge memory so yes the wafers for high bandwidth memory for the future nodes will certainly be produced there fantastic now before i turn over my colleagues i looked up clay which is a suburb of Syracuse sanjay you need tens of thousands of people where are you going to get them in an area that frankly has not historically had that many workers that's a big focus of us you know Syracuse area definitely had manufacturing in the past so it has the roots of manufacturing in the region the region has the New York state has a strong university ecosystem as well you know junior colleges Sunni and prestigious institutions as well and of course micron is heavily engaged with the community there in fact with governor hokul we established a community investment framework with 250 million dollar investment from micron to reach out to rural communities to reach out to veterans underrepresented groups women and bring them into the workforce start a print strip programs micron has started a clean room in anandaga community college to train students there and so we are building the workforce not only in the northeast here but across the country we have major initiatives no question that you know bringing the talent is a major priority and of course engaging with construction unions as well to bring the construction workforce that's needed for the fabs when you talk about over the next 20 plus years spending a potential of 125 billion dollars sanjay what are going to be the markers by which you actually judge whether in fact additional capital is warranted and when will you start to sort of assess whether it's worth investing beyond the obviously large initial investment yes absolutely our investments will be in line with the market demand and of course in the preliminary memorandum of terms that we have signed with the chips program office we have built in the flexibility so that we can equip our fabs bring up production in line with the market demand that is extremely important for us to be staying disciplined with capex focusing on cost and bringing supply in line with demand so of course looking at the demand will always be a key measure i want to point out that our first fab that will be brought up with the support of the chips grants in Boise Idaho is co-located with our rnd fab and that really is a great benefit to have rnd and manufacturing co-located that accelerates time to market of innovative technologies that will go into products like high bandwidth memory and then we take them to mega scale in new york so this 125 billion dollar investment in new york and Idaho will be over the course of 20 years we are right now focused on the first fab in Boise Idaho and the first two fabs in in New York with investment of about 50 billion dollar going through 2030 time frame right five zero yep is the workforce issue going to be more acute in Idaho or New York would you think would you say well we are micron was founded in Idaho 45 years ago and you know we are quite a powerhouse there and you can see that in Boise Idaho micron established the workforce micron has built a leading edge semiconductor memory company in Boise Idaho we can do that in Syracuse as well early and when the grants were being framed there was some criticism the commerce was attaching too many conditions to really what was about internal HR policies and things like that was that ever a sticking point well things like HR policies these have been DNA of micron all along we are focused on really inclusive workforce absolutely providing childcare to our team members we are very soon we'll be starting a childcare center some of these things were already in play even before we filed for our chips application and of course some of these details regarding some of the terms we continue to work on these with the chips program office they will ultimately be in their final form with the final agreement expected to be later this summer okay just today the last 36 hours we've seen incredible amount of money going to be spent by Marc Zuckerberg okay it met up we see it at Google and we see it at Microsoft now I know it's initially it's Nvidia but it's going to be you too did were you surprised at the gigantic amount of money that is going toward you from these hyperscalers no question that as we discuss in another earnings call in March that it is AI that is accelerating the demand for memory and memory is a key enabler I mean think about it AI needs data I mean you look at large language models then they're going into trillions of parameters they need more and more memory they need that high bandwidth memory they need low power memory they need more capacity of memory if you just look at Nvidia GPUs you know starting from a 100 with 40 gigabyte of memory the latest black well announced with 192 gigabyte of memory in just a matter of short period of time so memory is a key enabler and I just wanted to show you because you brought a high bandwidth memory Jim this is a technical marvel here how many am I sure is this is 24 gigabyte today it is with eight die stacked into it this is smaller than my thumb nail thinner than my thumbnail and we have stacked eight die into this today it has already sampled this stack with 12 die in it next year it will further give an increase and these AI accelerators are hungry for memory and you know these die what they do is they need today three times more silicon to produce the same number of bits and you know they give tremendous high bandwidth so what it's doing is it's creating a real shortage on the leading edge supply not only high bandwidth memories in great demand it's creating a shortage on the non high bandwidth memory so this is the kind of marvel the micron team produces okay now one of this question I know there's like hell or me or hurry me here okay so uh Microsoft says PCs now stabilized going hard uh how do you feel about PCs uh right now will be mentioned in our earnings call in march that PCs will have a more desk growth low single digits 24 over 23 in terms of unit sales and PCs what's important is AI enabled PCs require more memory they require 40 to 80 percent more DRAM content than i average PC and these AI enabled PCs the neural processor units will continue to increase their adoption late this year then in 2020 well i always ask this because Intel last night said that PCs are weak so i think maybe that it's raining on this side of the street you got the sunny side look i mean content increase is a factor and for us another big factor is that the supply is very tight all right this is what leads to 24 i know being a year of recovery now you call the bottom proving fundamentals of financial performance and 25 being a record year for the company you nailed it at 65 in that corporate school that was an amazing call catching trouble they'll tell me i gotta go i don't want to go but i guess we have some such a we have a great team we have a great yeah you got the stars yeah good work thank you yeah thank you when we come back this morning uh an exclusive with chevron's mike worth we'll hear what he has to say about the company's results today along with oil and net gas prices as the future is hanging in there on this Friday after an eventful week don't go anywhere what's on the horizon for financial markets at pjim it's a question that over fourteen hundred 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 a lot of hand-ringing about the us economy this week are we in stagflation is the economy running too hot one thing the journal points out today jim this year the us will account for 26.3 percent of global gdp that's the highest in 20 years well look there is a we are in a bit of a house in a moment but remember also our our trade partners are not typically china so it's easy to sneak in it is a major term for most everybody pick the southeast it can be everything from malchemical there to what saunjays talk about with the gigantic spend on semis so it's happening it's not recognized as much because i think a lot of people feel that the administration has not been that good at getting broke which is why the communication of that message is kind of strange for america uh yeah well we'll get a jobs number a week from today and if april comes in below four i will tie the record for the most consecutive months below four percent on the globe that's amazing i mean we're a growth country like we've not been and remember we have old immigrants 10 million people has come in a lot of these countries do not have net increase in population we do and that is vital for growth so uh it's an exciting time for the economy and reflecting the stock market we do need 4.1 so that we can get a fed rate cut that's not going to happen yet although i think we got some weakness i know we wanted to dig in a little bit more david to uh at least uh the google numbers the dividend the capex beat the buyback edition 70 billion right a new dividend uh the enormous buyback as you say 70 billion a lot of times spent Jim on the call as well talking about youtube which is something you love to talk about because it's really incredibly strong numbers and we'll get to microsoft as well and what will you know again at the top of the show we didn't get through all the numbers about 31 percent of that but google that acceleration was a significant doesn't search by the way is as high as it's ever been which would certainly seem to um rebut those who at least in the near term have said that the company's facing an existential crisis in terms of search as it moves to generative AI and whether they can maintain what has essentially been a monopoly in search well the concerns perhaps fading away they kind of have over the course of the last few weeks anyway in terms of the stock but youtube tv by the way has got eight million subscribers you know we're absolutely um we talk and i talk often about the loss of video subscribers amongst the so-called cable companies yesterday it was our parent company Comcast today it's charter with a loss of four hundred and five thousand video subscribers on a smaller base by the way so percentage wise larger for the quarter but some of that is being made up by the likes of youtube tv which again at eight million subs has become a major player in terms of uh in terms of uh distributing cable channels essentially so they brought this up because they they're talking about the benefit from the combination of strong watch time growth innovation the user david that that's where the viewer's going okay you're going to youtube and this is the first i beg them for for data on youtube and and you get the data and you realize that well this is how people are going to get tv i mean it's already begun it's it's well well underway and you know i just the numbers themselves on youtube and what's in vision uh we're very significant what are we talking about i just wanted to kind of give people ad revenues were up 21 percent year over year uh they're talking both direct response and brand network revenues were down but it's right you know again subscriptions platforms devices you're in your revenues increased 18 percent again they talk about it being driven largely by youtube subscriptions right that's not just youtube tv that's overall subscriptions they got ads beauty ads they have fashion ads lifestyle entertainment david you know they are they are like the old days the house end days are used that twice now sorry of linear tv right and they incredible this is where they all went they went there a lot not all of them and no i'm saying the direction of but a bunch of them and if people find out the court cutters have gone to that and or youtube is just replaced that is youtube itself has just replaced watching television well it's not they don't do fire shows they don't do cop shows that not like nci i mean but they watch they look at mr beast videos and he's he's enormous remember the cat videos you mentioned the cat videos are amazing no i this was i i beg with poor i'd who's just unbelievable really crushed it last night president former cfo yeah please tell us how good this is and i can't wait thinking look out david's as well they want n_b_a_ they went yeah i mean but you can't compete i mean the likes of these smaller players can't compete with the amazon's the n_b_a_ the the alphabetical world we're gonna buy the n_b_a_ when it comes to that they can buy joventus um mention and they showed some expense control head count was down i know no david this quarter i know that i love the michael self-quarter carl but this quarter even told us that the other bets aren't doing badly waymo yes waymo so we have a guy named musk okay and he's trying to do like self-driving something robo robo and then we have robo right here this is all the robo we need this is robo robo uh mercedes had some news on that front this week as well by the way bunch of price target increases b of a goes to 200 i think ever court 220 uh the b of a notes titled firing on all cylinders um just in terms of the sell side reaction wait oh no this is good i mean even just simple things like doing a mcdonald's restaurant in the future david these guys are in now you think they have been on your list of things to trim sell is that no longer the case we did not get granularity from rooporat about where the money's being spent and what's happened within youtube then you have to sell the stock so what did she do she gave us more granularity than i've ever seen and i will tell you she's fabulous are you said that you for before when she was more your Stanley you've been saying it for a long long time she's the best i like Anthony too Anthony the new sea of husband oh her husband yeah i came to i don't know i didn't know who that was um hundred billion dollar business potentially between cloud and youtube as well so google uh alphabet is trying to focus say hey you know we've got a lot more than just what what is going on at pure search you know we this is a company that frankly very apt piece by uh nathesus at mafit day this is saying listen maybe it was there all the time yeah maybe it was there all the time you know doesn't mean that they are now having more competition as as the world moves to more generative ai solutions for search give it a chance and that gemini is not going to be the you know we'll be the answer for everybody i think that a lot of people are concerned that you would can you know that you would cannibalize search because of ai and it didn't happen no but big numbers were better right i mean being a thing is a thing in a way it wasn't a year and a half ago well these guys could be frank and yeah but being is of course if you remember is microsoft's and now it's powered by ai right you know that everybody went look yesterday bill mitherman talked about the service now talk about people going on ai d this was an ai explosion last night but no one talked about the check that you have to write to invidia because all these guys are like coming up with their own foe little chips in a you hear my crime we're talking about the high bandwidth it is just remarkable how much how much that invidious behind all these and people should remember that because i know a lot of people feel that invidious seen its day it's come and go on and i don't think so that blackwell as he mentioned which is the next generation allows you to do this perfect video it was interesting to listen to saanjay talk about how how chip intensive the new pc cycle will be by the way microsoft pc's up 17 was a beat they do guide cloud and azure higher look for double digit revenue growth in fiscoll 25 that's in line with the street gym bave said the only ai beneficiary at this point is microsoft in a sense well although they didn't give a lot of detail around co-pilot it's not fair did they i mean no they didn't well they didn't tend to emphasize them because they had so many other great and you know they did talk about them they gave me almost unbelievable stuff when gaming i mean everything now it is interesting could point out so we have microsoft saying great things about the pc we had micron earlier on saying the pc's bottom but now intel which is the primary pc chip company their stock is down 12 percent so the question is is that why did they see weakness in pc's like everyone else as they say when no one saw it other than intel now there was a moment in the intel conference call where he said we're going back to grovean ways that's a reference to andy grove who may i just mentioned missed no quarters now grove was a tight and to be actually to invoke grove in this conference call with these numbers yeah i'll go back to microsoft it's a better story 50 billion in capex i stole that number potentially is what they've used in where's that show who's capex a lot of that's going in vidney but it's not just microsoft at 50 billion or alphabet at 40 plus or meta or it's even elan musk's new x ai uh effort which is raising uh the informations reported on confirm as well six billion dollars in new funds for evaluation that's over 18 billion he's going to be spending billions buying h 100s no by the way from invidious to get the higher end he can't use you got to get to two or black was for this he can't get the one or his two slow his new for the x ai effort which is separate from tesla's purchases of the h 100s that's true for tesla to to fuel its own self-driving so the demand jim just keeps no the demand is incredible and i thought met it should be up a little more because they need to be in the arms race but you know we're going to switch to uh david spaly where we're gonna go to oil ok and i mean the oil is very exciting because he's x on and then of course chevron let's check back in on shares of chevron after reporting first quarter results which i thought were great i think the stock doesn't know what it's doing uh so join us now in a cm c exclusive is chevron ceo mike worth mike always great to have you on the show morning jim good to see you mike i see of many good things here right permeate absolutely terrific i round uh global great of course we have to talk about the acquisition that's but i think that i've got two other acquisitions that i like you did a renewable energy acquisition and you did p_d_c_ which was colorado so i'm asking rather than go to the big dog that we may have to talk to you that isn't complete how were those and have they helped well jim you're you're right it was a really strong first quarter and of course uh those uh acquisitions along with our our base business contributed to strong operational performance strong financial performance in strong shareholder returns operationally this is the highest first quarter production in the history of our company and first quarter u_s_ production was up 35% versus last year uh on financial performance some ninth straight quarter with adjusted earnings greater than five billion dollars and and an adjusted return on capital employed greater than 12% and all that translates to to to really strong returns to shareholders this is the eighth consecutive quarter where we've returned over five billion dollars in cash to shareholders so strong contributions from our our core ongoing business and of course important contributions from the recent acquisitions well in the meantime you also i i'm not saying that you set yourself short but the things you're doing environmentally i want to mention because you're part of what i regard as the pragmatic energy complex and i just want to give you the floor for people to know that we're not going to roll back the things that are involving climate change because you're at the forefront of being pragmatic and doing the right thing i think you're using an important word pragmatic i use the word balanced as well we're investing in things that we think can bring benefits today uh and things that fit with our core competencies and so in the most recent quarter we sanctioned a project to increase oil seed processing capability to help grow our biofuels business where we're the second largest biofuels producer in the united states we also sanctioned a project in california to take an oil field where we've got solar production today to support our operations and we've got excess solar capacity which we will now use to generate green hydrogen and and supply that initially at least out to retail stations for for vehicle transportation so these are things that fit with our competency fit with our asset base our customers and things we can do today that help contribute to addressing the desire for a lower carbon energy system mike it's david um a lot of focus as well on the pending transaction to acquire hass and i wanted to just ask a few questions around that first of all when do you think you're actually going to schedule a shareholder vote or when are they going to schedule a shareholder vote and when do you believe you'll be in substantial compliance with what the regulators have asked in terms of the antitrust review yeah david first of all i think and glad you're talking about shareholders this is a transaction that is good for shareholders uh for shareholders of hass the shareholders of the chevron it's good for the industry in creating a premier energy company that's well positioned for the energy transition and it's good for the the people of gayana in the country of gayana uh we expect the mailing on the uh hass proxy to go out before the end of april and a shareholder vote to be held late in may so that's uh that's upon us here and uh we've been working constructively uh with the ftc we respect the role that they play in the uh the oversight process on transactions and expect to uh you know certify compliance with their second request here uh by mid-year and uh and work our way through the process with them uh by mid-year so both of those things on track here uh in the second quarter right the unexpected part of this of course has been what is a dispute now with exon over whether in fact as was as part of their joint operating agreement in gayana where they own 45 percent they have a right of preemption uh that's being arbitrated now um mike how long is that going to take and are you getting the sense that exon would like to push this arbitration out as long as it can well the the arbitration process is really set by the arbitration tribunal uh and uh and so we have to respect their uh procedures in uh in this uh so we don't control that uh at a an investor conference uh last month uh exon suggested that five to six months should be sufficient we certainly believe uh that's a sufficient time to address what's a pretty straightforward interpretation of contractual language and uh and we've uh worked with has who's really party to this uh joint operating agreement and i think in their disclosures have uh and we've indicated in our disclosures that we've suggested a third quarter hearing and a fourth quarter resolution uh would be appropriate so we're working with has to move this along expediently and uh and we think that's in everyone's interests yeah darren woods was a guest earlier on squawk box and he said listen we're not interested in making a play these are his words for has we're not interested in a transaction on has but he continues to say it's about protecting the value they created and of course they believe that they have that right of first refusal what do you say and is there any chance that we can actually those of us we're trying to figure it out see the language that is an issue here given it would help the market decide who's got the upper hand yeah i think uh you know i'll let exon speak for what their intentions are um you know we're not a party to this agreement and uh it's a confidential agreement and so that anything that would relate to uh making terms of this agreement public is something that really is uh the province of those that are party to the agreement and that would be uh you know exon has and uh in cnuk and so uh you know i i think those questions are probably best directed to them right although just to make it clear if in fact you were to lose this arbitration you're not going to buy has there's a a condition precedent that uh needs to be satisfied uh and if an arbitration uh judgment in the event it were to go against uh has his interpretation of the contract and we we feel very confident that their interpretation is is the correct one uh then that that condition wouldn't be satisfied and the transaction would not close correct all right so might let let's talk about the price of oil uh i understand i think there's about a five dollar war premium is why i look at it uh where we have an inflation problem in the country where would oil be trading if we didn't have problems in the mid-east and do you think that the united states can be a swing producer to actually get the price gap certainly for the last decade or so the us has been the the producer that's met most of the uh you know demand growth in the world at at the margin uh production in the us is still growing although not at the same rate it was earlier this last decade demand is growing pretty strongly up a couple million barrels a day last year probably another million and a half barrels a day this year and so while there may be a slight risk premium in the market we also have a market that's pretty finely balanced inventories that are a little bit or on the lower end and i think we'd see still pretty pretty decent commodity prices in this environment but as as you know jim it's a volatile world and we have to be prepared for ups and downs uh we're prepared for volatility we've got a strong balance sheet with net debt in the single digits and we're very confident in the future in any price environment which is why we raised our dividend eight percent earlier this year and continue to have no a track record 37 consecutive years of increasing our dividend dividend payout is uh four percent uh which is almost three times what the s&p five hundred is and over the last five years we've grown it at a rate 30 percent higher than the growth rate of the s&p so we're confident in the future and we're prepared for volatility in commodity markets okay so let's talk about uh what could make things difficult you have the permian it looks like you're finally getting enough pipe from the permium to bring that to market it wasn't the case and then you have the president calling for a pause in lng till uh in 2028 which would be devastating i think you would admit because these plan these projects have to be decided now for 2028 so there's a lot of them that are being shelved do you have enough pipe and do you have enough export we do have uh offtake capacity out of the permium we've got export capacity and so our company is is well positioned uh for uh you know market uh vagaries uh in terms of transportation and uh in exports but i think the broader point you make is uh you know it's a good thing for the world that the us is an innovative energy powerhouse uh it's a good thing for our allies it's a good thing for our economy and it's a good thing that we've got dynamic strong companies in this industry that have invested in us energy as at the same time we're reducing carbon to our earlier discussion and we need to have a policy environment that encourages uh investment because not only does our economy rely on it but those of our allies do in the world economy does and so we need policies that are uh are predictable are consistent uh that protect the environment but that also encourage investment and development of the resources that this country has that are vital to our security well mike i want to thank you for coming on and uh answering a lot of questions tough questions about the test yield because the stock has gotten killed since you uh your your questioning gave it i think it's important for mike to know uh hope to see you soon and uh glad that you uh came on the show after chevron's i thought excellent quarter and terrific dividend policy thank you mike david jim great seeing you always take care as we go to break let's check bonds as well uh as we had yields lower across the curve this morning in the wake of that relatively as expected to core pce uh let's take a look at uh yields as for equities financials utilities and energy uh definitely lagging today with the s&p close to 50 90 don't go away despite the midweek scare regarding equities bunch of double digit gainers for the week on the nasdaq 100 you'll see mongo dv jim is that a hashi core payload well we just you know enterprise swelfers on fire again that's incredible tesla's number two google is going to be in there further down the list uh texan kla on semi marvel as the chips definitely made a stand we'll take a break here almost back to 50 100 stay with us jim what's on matt to my favorite fintech s&p global though peterson not the jackseville guy and pico which is incredible pico is not only still around but doing fabulously uh can't wait so many names we didn't get to today i know it didn't have v capital one roku snap and roku not so good i you know look i'm i'm with one to listen to evan tell him tell him congratulations i've been hard on him because i've been saying that he's nice uh nice pre-market gain at least uh 20 plus percent on snap that's coming up later this morning very good reach of advertise gotta hand it to me held in there jim good weekend yeah you too jim creamer matt money 6 p.m tonight with the dow and the s&p well into the green don't go anywhere you've been listening to the opening bell on cnbc squawk on the street all opinions expressed by the squawk on the street participants are solely their opinions and do not reflect the opinions of cnbc nbc universal or their parent company or affiliates and may have been previously disseminated by them on television radio internet or another medium you should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of an opinion such opinions are based upon information squawk on the street participants consider reliable but neither cnbc nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such to view the full squawk on the street disclaimer please visit cnbc.com forward slash squawk on the street disclaimer from pit length to podium the los vegas grand prix is providing fans a race day experience at the speed they deserve with the help of team mobile for business r5g advanced network solutions are powering race day 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