What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. It's Jim Kramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action. Good Monday morning, welcome to Squawk on the Street. I'm Carl Kingston here with Jim Kramer, David Faber at Post 9 of the New York Stock Exchange. Coming off the best week for the S&P in about six months and futures are solid, ahead of a very busy few days. Apple and Amazon earnings, a Fed decision, a jobs number, 10 year 4, 6, 3. The roadmap begins with Musk's surprise visit to China, Tesla passing some key hurdles in that country, giving that stock a big surge in the pre-market. Plus, we will have the latest on those deal talks around Paramount as well. The potential departure of the company's CEO as it also gets ready to report after the bell. Speaking of earnings, it is the busiest week of quarterly results. Only one-third of the S&P 500 and 20 percent of the Dow are reporting. Apple and Amazon, of course, lead the way this week. Let's begin with Tesla rallying in the pre-market today, following Musk's visit to China. The company winning approval to roll out its full self-driving technology. In that country, Jim, this is a partnership with Baidu being called a watershed moment for FSD. Yeah, I mean, you need to have, I remember when I wrote it on Waymo, which is obviously Google's product. You had to have the Google Map. You just need this infrastructure and you ought to be able to make it, it was obviously being withheld. Is it worth 22 points? And I think the people who were short-Tesla betting that there had to be more earnings problems. I mean, there's an Evercore piece that you're saying, lowering price target to 145 from 155, that probably was pre-China. But David, there is a sense among the companies that make self-driving, that there's this holy grail robo-taxi plan out there. Forgetting the fact, I think, in this case, the Tesla's are expensive. More expensive than the regular car. A regular car? You've been nice. Oh, well, yeah. I mean, at the same time that you're reading about and hearing about Musk's visit and the OK for moving full self-driving, at least, into the Chinese market, you're also well aware that BYD continues to be able to lower the price of its entry model to well below half of what Tesla charges for car in the Chinese market. Not to mention what that will mean in other markets outside the U.S. in terms of continued competition from those EV makers in China, who, as we pointed out so many times, have lowered price and increased quality. Doesn't necessarily mean that they are the equivalent of a Tesla, but the price differential is pretty significant. So you're still dealing with that. But what you're reminded of here, though, guys, is that you thought it was safe to short Tesla finally, maybe. Well, that's what it is. And then it is. It's going to say that, but I just feel like you... I would never even admit that people are shorting Tesla because it is just take... It's a win-and-make-retreat. It is. You would have thought that, except that, of course, you would have been up... I mean, you were down 40 percent only a week ago before the earnings print. Look, we didn't know he was going to go to China yet. I mean, Carl, I think that the bulls are saying that he's back in most favorite nation status. I will come back and say, "That's absolutely true." But why would you buy this instead of a BYD? Now, David says the quality may be more status symbol, but if it's a robotux, who cares? I mean, it's about utility. It's not about how good it looks. Do we care how good... Can we take an Uber? I mean, yes, some people want to take a black car, but for the most part, you can take what you can get. Do you think China has the potential to be the tip of the spear around the world on full self-driving? No, because it's just... I think self-drive, as David often mentions, if someone dies in a self-drive, it's considered to be a story if someone dies in a crash. It's not a story. Yeah, it's a strange comparison we continue to make here. There's stories today about Ford self-drive. I mean, you know, the SDS, the service transportation board and the investigations that they'll do. And yet, tens of thousands of people still die every year behind the wheel. Yeah, because of drunk driving. I mean, get rid of drunk driving. And texting. Yeah, and texting. Don't forget that, or watching television. Forget texting. I mean, you see people fully engaged with their phone without, I mean, watching a movie by the time it's... No, that's why I want self-driving. Yeah. Now, I always gauge it these days by looking at the price of FCX. You need more copper when you buy a Tesla, and FCX has been telling the truth. FCX is that more Tesla's are going to be sold. FCX goes to Allen. It's going to be fewer Tesla's. I wish that there were more to it than that. But that's the algorithm that people want to understand how much Tesla is being valued at at a given time. Watch copper first. Copper highest since April of 2022 today. Yeah. Meantime, more broadly, Jim, about the market. We mentioned best week in a six months or so. Nice piece out of Morgan Stanley today. Strong aggregate earnings surprises up 9% upside. Best in about three years. That was a very positive piece. Let's say cost is a little bit more temperous that by saying that it's really the companies with the highest quality growth they're going up, and of course the highest quality growth is the mega cap. So the broader range of the Morgan Stanley could trump everything. David, we do have animal spirits last week. They were quite impressive. You report Google, and Google goes up, and then it goes up, and then it goes up. I mean, it has like three waves of go on. As the weekend, of course, on the strength of both alphabets and Microsoft's earnings. You think that was animal spirits there? Yes. Well, I did think it. Now I wonder whether some is going to give back if Apple really is going to have a tie up with chat and not Google as the New York Times. Well, actually, the whole thing started with Bloomberg reporting that there was going to be a tie up. Remember? I do. I do. I do remember that. Apple suits up two ends. I know those kinds of stories are always hard. These things are dynamic. Because they're sourced? I don't know why. No, you were supposed to know what... That was a softball. You're supposed to see Jim there. You see that they're not sourced, but there's no... Remember, there's no penalty for if you screw up. No, there isn't. But on Apple, it's always hard. It's just because they're... Apple's impossible. And I'd like to think I'm close to Apple. I never know what they're going to do. This is the upgrade from Tony Second, Aki. Today goes to outperform 195. Jim Stocksbendy rated, the premium is low by history. China weakness is cyclical, not structural. And more AI could be a tailwind. I know. I mean, I saw his corner of Ben Stoto. I mean, you know what I'm going to say. I do. How do you call top in Apple? What's the way you call top in Apple? You have a guy who's not even going to identify as being the biggest bear, but as a biggest bear. Switch direction and go positive. That's what's called a cop. So I hope that's not the case because my child will tell us owns it. We say, "Oh, and it don't trade it." But we were upset to see him join it ahead of the quarter. As if somehow, even when you read him, he doesn't say this course, the breakout. But to have him on board has a bad feel. But that's like having the... When sports Australia existed, it was like having the sports Australia... Yes, the curse. Right? The curse of sports Australia. I don't want to wait. I do. What is... Which one went away? Sports... The curse of sports Australia. Sports Australia. Sports Australia is kind of no longer. Right. Sadly. Since they bought the street, I managed to throw it. Well, it's true. It was a long time. You can remember, obviously, a long, long time ago, really being excited every time that showed my mailbox. Sure. It came out Friday. Reading it, covered it, covered it. It was like the greatest. I always checked faces in the crowd for David's kid. Okay. What do you have? 95 mile an hour. So what do you have? That was... No. I'm joking about some great journalism, but that's a long time ago, Jim. A long time ago. Because... All right. But Jamie Salter is a very smart guy. He actually has the intellectual property. I love that guy. But I will say that what's happened, Carlos, when I read it, I feel there's a jinx. And what time is he booked on this? 9 and 12 and a 7 and a 15? He's on a 15. You want to talk... I mean, Amazon reports later on the week talking about making up the shark tank for him. And is there a possibility they're going to institute it? Some sort of dividend, Jim? Well, that's the new thing. I mean, there's a rumor. You know, apparently there was a Bloomberg page that had an ex-dividend date, and people are like, "What's going on here?" And the stock is actually out there. If they had a dividend, one and a half percent. Because that's what people want. I mean, you know, alphabet. When you talk to people about it, she's an alphabet. They were like, "Hey, you wanted a dividend? You want a transparency? What would give you everything you need?" And you know, what it worked. It was an amazing call. The alphabet call actually talked about how they make money. That's another reason why you had this conversation, or at least why this rumor would have some traction, which is that alphabet. A very small dividend, but nonetheless, for some time. It's going to give back some, but it was incredible to find out how they make money. Because they make money in everything. It was much more bullish than I thought. When I went through an alphabet's core, when I parsed it, so to speak, I saw that they make money. I mean, they're even losing money in these other bets. I bet you they bring back other bets, and just make another line of it. Because other bets was an excuse to lose money. And I don't think they're going to tolerate that anymore. I think that they have a new intolerance toward losses of money. I wish they would talk about Fitbit as like the analog for what we shouldn't have done. You know, a little demonstration. Well, that sort of ties in with what Wilson said in that note this morning that the reaction to these nice upside surprises has been pretty muted because they think the streets being discerning on efficiency, operation-wise, discipline, expense-wise. Well, I mean, I do think, look, I think he represents now mainstream. That's true, and good, and good. Who represents Main Street? What? Wilson? Wilson's coming around to the price on Wilson. Which will? Mike Wilson, we're talking about him more than Sam. No, and Dennis Manus and Wilson. All right, sometimes it's a little hard, guys, to keep up, okay? Well, if you focus on what we're doing, it wouldn't be. Instead of focusing on Tiny Skydancer. I've got to believe me, I've got so much on that. No, no, I just think Wilson's represented Mainstream. Soganyagi's the Curse of Apple. I mean, where are the guys who you counted, wanted to be negative? What happened to them? Where are the Bears? Where's Jelly Stone National Park? Hey, boo-boo. Hey, boo-boo. Hey, boo-boo. Hey, boo-boo. Let's go get some good basketball. I know you. We can go full-hand of our-- we can do the whole show in-hand of our game. Absolutely, one-off. Yeah, we got to go. Yeah, who was Haslov had the rights to-- the rights to-- Yeah, I believe that's a-- I believe that's a Warner Brothers property. And who was the rights to Tiny Skydancer in the tunnel? What a great piece this morning. Well, Paramount did do the Elton John movie. That's true. Yes, they did. David has it covered. Are we going to get to it after a break? Yeah, we're going to get to that. But actually, I just said that we have a bromer around here. I'm going to go to this morning, if you want to know what else. Who has good quarters? Okay, good. We have another slash and burn of charter. Yeah. They're underperforming every single line up, except for the ability to be able to prove you something. I don't know. That stock is now 35%. It's your full reason. So far, everybody loves. But I question when you get them on these, he has to-- Every time he issues equity, it's positive. But when you issue a convert, Anthony should know. You can short against a convert from now. The cows come home. I got two cows. We are going to talk to him in the next hour. Decent guidance. You two cows? I got two cows. Are they new? Yeah, I just got them. You just got them. Would you mail order? How do you get them? No, you get them. Yeah, you get them. You get them from Omaha Steak. That's how you get them. Oh, no. We got to go. Oh, I want pictures of him. Are they dairy bone? Are they dairy bone? No. No. No, they're a little older. Oh. That's very sweet. Look at these two. Lucy and Massey. But they told me to call it Macy. But Macy's is like-- We're going to-- We're going to get this picture. We're going to get it on TV to show people those are-- Is it Macy? They're beautiful cows. They're beautiful. They're beautiful. They love them. They love donuts. We will get to Kramer's cows. We'll get to Paramount so far. I got some calls today on Lulu, AT&T Southwest. Take a look at the pre-market back in a moment. 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 $1 billion 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.com/projectup. Electricity, a big idea that's inspired countless new ones. From powering the light bulb to virtually powering our entire lives. 30 years ago, State Street launched the Spyder S&P 500 ETF, Spy. 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And there you take a look at Paramount Chairs, which are up. By the way, waiting for the stepping down of Bob Backish, the CEO of that. Not going to happen this morning, but very much anticipated after the close. I believe the company also reporting after the close. So we're waiting for that. As for the process under which this company may have a change in control, that is certainly a focus for many shareholders who have been less than enthused with the idea of control shareholder shared redstone through national amusements, getting a large premium for her shares while they got nothing except the promise of a higher stock price based on a merger with the Paramount studio and Skydance itself. What I can tell you is they have moved along here in terms of this exclusive negotiation that's been going on between the special committee and the Ellison Group to the point where it is my understanding at least that they've gotten to basically kind of what they would call expect to be a final offer from Skydance. Now, things can always change. You can always tweak things. It doesn't appear that they're going to have a deal in hand as of the end of exclusivity on Friday, but perhaps they will get very close to at least having something that is close to that deal that could be signed up, brought to the control shareholder, namely that being Sherry Redstone. It does include, as my understanding, and this is an important component here and one that the special committee has been pushing for, what is essentially a premium that would be paid at least to be shareholders for some percentage of their shares. Yes, you merge in Skydance through buying Skydance at roughly a $5 billion value. Then, as I've been reporting for weeks now, there would be a large issuance of stock, primary shares from the company that would be bought by Larry Ellison, by Redbird, by KKR, which also owns a part of Skydance right now and potentially some other investors, but what would also be bought at a premium is some percentage of shareholders' ownings. Can't imagine it's a large percent. I don't know what the number is. Would it be 10%? Who knows? But that is apparently part of what is essentially there. Sort of the offer that they have made to try to meet the objections of, or at least their worries of the special committee that feels like, "Hey, we have to offer some form of liquidity to the shareholders so they feel like they've gotten something out of this other than, of course, the merits of the transaction themselves," which, again, as I've reported in the past, include delivering, include what they believe would be a significant amount of cost savings to the tune of at least a billion, perhaps $2 billion, and to the prospect of having Larry Ellison as your essentially controlling shareholder in many ways, which wouldn't be a bad thing. Certainly, he has very deep pockets. All of that, of course, is something special. The special committee, Jim, has to figure out as they weigh whether to sign this up, whether to see if they can get something out of Apollo and Sony this real. Yes, I hear Sony would love to be there in some fashion, would love to own the studio, as so many others would. Nothing has come in yet. Even though it's exclusivity, nothing stops a Sony from sending a letter in with some granularity and detail. Under what I'm hearing, at least the plan would be with Apollo and Sony teamed up. Sony would be the majority owner, they would merge, obviously, Paramount and Sony. Together, they throw legendary in, which is controlled by Apollo, but all these things have a lot of regulatory risk. Sony does, and by the way, I brought up the idea of the Japanese, whether they would be there for Sony USA in the end, in terms of signing off on a deal that would require a lot of cash from them, but regulatory-wise, it's like, I mean, Apollo-owned stations. What do you do with the station group? You have to get rid of that, too, so really you're just buying the studio there, because at sales are a huge part of that potential transaction. If it were to even come to the fore, and again, nothing has been sent into the Special Committee of any level of granularity, let alone it all from Sony is what I'm understanding at this point. Then, if you are the Ellison Group, Jim, you've got an FCC review, it's going to take some time. You've committed to a deal in which you're buying stock at a premium, by the way, over the current price. You're going to sit out there for nine months while your capital is at risk. As the cash flow goes down, as you're dealing with an over levered company, that has yet to do that carriage agreement with Charter, which could end up in a not particularly good place. It's got a lot of risk to it. That is fabulous reporting. Okay, so I listen to you, and I think, okay, you mentioned Larry Ellison. So, let's say Amazon were to try to buy Paramount. No. Justice Department would start in Canada, no way. Let's say Apple wanted to buy it. No way. John Kidder, no way. Let's say Alphabet wanted to buy it. No way. Without the fourth guy who has the best network with the best technology in data analytics, which is what the Wall Street Journal says you need, how about Oracle? But not really. We make it Larry Ellison, Justice Department doesn't see through that, the deal gets done. Skydance has absolutely what is, 90 million in revenues, which is better, DJT or Skydance. David, this is a backdoor way for a great American company to be able to own a company. Well, Ellison would be obviously a very different approach for him, but you would know that they'd be there. You'd know that there would be technology at the root of so much of what they're doing, and that certainly is the prospect that at least the Ellison group is trying to present to the special committee, but it's very difficult for them. They've got to look at, all right, status quo, which by the way, this company is potentially going to be run by a committee starting tomorrow, Paramount. Ellison deal, or if you can really nail something down, it's a big premium from Apollo and Sony. Absolutely. It's a mandatory risk that maybe you sign that up, but that hasn't come to the fore yet. Well, I'll tell you, you know, with a lot of members, Simon and Garfunkel said no man is an island, right? But Larry Ellison owns an island, you know, this is a new job, I don't know why, which is fabulous. This would be, this would be Jump Chase for him, and yet then they would be able to use the data analytics which are really fabulous, by the way, and David, I don't know about Sony, but let me ask you, if it's Sony America, do they have any money? Well, no, they got the Japanese, which I pointed out would have to obviously sign on, my understanding is, at this point, they are supportive, but it always comes down to when you have to write the check. But as you wait for this deal to get done, is the cash flow not going lower? It's probably going lower. Yeah. Yeah. It's in the content business. It's protected by the government. Not to mention, by the way, there's real questions about an NFL deal, and whether that would be something that they'd be willing to sign up to with Apollo and Sony. You've got to grow around the NFL deal. Why don't you grow up? NFL is the key part of the program. Champions League. Why don't you grow around Champions League? Yeah. How about, hey, David. Masters. A tradition like no other? Yeah. Yeah. How about Jalen? Remember how it's poorly differential? Bill and Oban? Then he comes to your team. He looks great. Burt. Jibben. Jalen Brunson is amazing. I'm aware of what we've played for. He played great for them to... Well, I'm full about March Madness. I'm throwing that in two. Yep. We've got to go. We'll see what happens with the... Brunson's paramount tonight, if not before. Kramer's a mad dash, and the opening bell coming up in a couple of minutes. 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Lucy and Macy's new additions to the Kramer family. Yes, not Jensen and Wong. People say that that's not what I do. As much as I love them. They're beautiful. All right, now we're really running out of time. Well, they're... We'll get to Southwest. On the other side of the bell, because we don't have enough time to hit us here. At least one word, which is run. Run. Run. Like from the slaughter there. These are not. Once you get in, you can't eat them. That's an old rule. They're beautiful. They're beautiful. We don't have time. We got to do the bell, then we'll do it on the other side. Oh, I share. Really? Yeah. Look. What time it is? Okay. Let's get this bell and the CBC Realtime Exchange of the Big Board, it's P-W-L, 2G and celebration of the company's IPO, as it has, that circle down, Karen's Company on Houston, Tuckes Urban coming up this weekend, Jim. Oh, boy. It always has good numbers. Yeah. Anyone's ever been there, and goes, "Had the previous group. It's fantastic." All right. So you were going to get to this call on Southwest? Yeah, okay. So we had... We had Bob. We had Mr. Jordan. It's very tough. Okay. This piece is really brutal. It says that because of a boy, which apparently Bloomberg says is going to sell some bonds, because of Boeing and some other operational issues, they downgrade the cell, throwing the baby out with a bathwater, and then they actually say the dividends in trouble. Wow. The dividend has been a big help there. So I just feel it's a Joe Blake year for them. I don't know what you can do. A lot of this is not their fault. It's Boeing's fault. But Bob's got... He's in a jam, and he came one last week. I think he is very straightforward, but the jam is real. They have to come back some roots. So I don't know. I just twirling. I'm having to cut some roots to select cities, which is going to weigh on capacity, which might weigh on airfares as we watch that contribution to CPI. Yeah. Well, we need that. We need that down, and that could help. We got to get insurance down. By the way... A Goldman did say they do see relief in car insurance. I know. That was good. Because if you've been reading some of the auto parts stories, people have not been reporting accidents, because they know that it'll jack up to a premium. So I think that insurance could be under pressure, and then you're really... You've got used car houses under attack today owned by these companies that buy them. It's really not that big, but it's important. But if you get house, you get rentals, Avalon Bay upgraded, so you've got to be... I'm price target, but you get car insurance down, then something that has a little more to do with. It's up in. No one's talking about that. It's too granular, but it doesn't matter, David. When it comes to mega cap tech, guys, obviously, we talked about Apple, top of the show, that upgrade from Bernstein, which very much worries Jim, but has the stock up 2.6%. And then meta adding to the losses from last week, of course, the follow on to what was a very poor reception in terms of, at least in the stock market, to those plans to spend upwards of perhaps the high end 40 billion on CapEx, as they continue to build out all of their AI capabilities, not a follow through on Alphabet, which is down or Microsoft, both of which were up nicely. Alphabet more so after reporting strong earnings. But Amazon does get a bit, in part on this, well, we'll see what the quarter looks like. Is there a possibility that there would be some sort of minor dividend added as Alphabet chose to do? Here, what is the problem with meta, slowing user growth, engagement with Facebook, increased competition from other social media prices, TikTok, regulatory scrutiny, higher operating expenses and investments in your tech dollars, where did I get that? From the site I'm now using, that's from meta, meta AI. Oh, how do you like that? You want the single source of truth about meta, go to meta AI, pretty negative. This site, which of course uses Jensen Mom, Bill Whitaker, there I covered it, is really fabulous. I used it for Ethereum analysis as a begin, but it's got great stuff on the meta downgraded. I think it's very conversational, very breezy. I would put it up there with Claude III, anthropic, and, you know, congratulations. They spent a fortune, but it's really good, no one's talking about it. I'm using it now ahead of Claude III. Interesting, the stock might be reacting this morning to some headlines about some EU rules probing their use of what they're calling Russian disinformation. I guess EU needs a little more money, geez, what an annuity stream. Imagine if EU used to sit back, David, hey, let's go after Oracle today on that Skydance thing, you know? Let's go after, they try to select them, right? Do you think so? Well, David, if they need money, what are they going to do? Shake down European companies? Think European companies are going to give me a break. They've already eliminated competition there. Right. Well, it's just that who's due? Like they said, who can we hit later? Oh, we haven't eaten. We haven't eaten Amazon lately. That's a journey. It's very cynical. It's a very cynical view of antitrust and of, sorry, broader regulation. Yeah. Very. They have a different approach in Europe. That is true. It's not all about the consumer as well, as you know. No, it's about the EU needing money. Hey, maybe they'll fund Ukraine with Amazon spies. Ooh. Wow. Meantime, Jim mentions Jensen Wong on 60 Minutes with Bill Whittaker over the weekend, talked about the future of AI and the potential impact on employment. Take a listen. We're hoping that it does things that surprise us. That's the whole point. In some areas like drug discovery, designing better materials that are lighter, stronger, we need artificial intelligence to help us explore the universe in places that we could have never done ourselves. Absolutely. But Jensen, the thing, obviously, they presented the view with just as it could be the David view that the machines could beat us and then the David view that the job loss is going to be significant. And obviously, every time Jensen says that, what he says is, look, every time you do more, you hire more people, all the chips that Facebook bought and they're not, they'll be hiring you. Nobody, though, has an answer for, you know, again, not even all right, the robots taking over and reaching general intelligence and deciding that we're all superfluous. But bad actors, that one, bad actors is real, that's how when you have open source, you're just mentioning meta, llama-free, open source, when you have the ability for the bad actors to have access to the same level of technology, bad actors can do anything. We have been, look at the upgrade today, I mean, the use piece on Palo Alto Networks, the bad actors got into your UNH. If one more person does my healthcare records, I'll kill them. I mean, bad actors. Everyone knows my healthcare records. They call me five times a day. They actually use my area code. The level of destruction that they can undertake as a result of access to the highest levels of generative AIs, pretty frightening over time. But how about what Jensen's talking about, healthcare? They have the healthcare division. They're going to solve so many illnesses. They are. So at the same time, our enemies are trying to figure out what's the best way to eliminate as many people as we can and screw up their economy as best we can. We're going to have the buy TikTok, owning TikToks and doing disinformation. Stop working right now. America's a weak country. I don't know what TikTok does. I use TikTok. You use everything. I use everything. Yeah, because I'm, you know, I'm trying to be, you know, cool. Yeah. Oh, no, you saw me this weekend. I was cool. Yes, yes, yes. You were. The way I started sponsoring David. I wasn't invited. Oh boy, David. You would have seen coolness. I bet I would have seen a lot. You would have seen the four AM pizza. Speaking of employment, Jim, I think, I think Goldman's still at 275 for Friday's number. We don't want that. We need 175. And we got to, if you go, we have to go over four because then, and not just because Jamie wants to, and we got to go over four because what happens is is that we can then say the Fed has more leeway next time. We have to have insurance that we went down over the components, but I fear a strong number. But I also believe that we're in a trend where we're getting a little bit weaker. I'm using that from transports because I still believe the transports are good. That was Goldman's view as well. They're still in the July camp, July, November cuts. We do see the next few prints being softer. And they said, even if we did get a surprise, unlikely that a hike would be in play. They'd be more apt to just keep this the same. Yeah. Ed Denny had some really good stuff on Squawk. Just saying, look, look, the final demand is fine. There's no there's no stagflation. I think if you break down, if you do an intelligent breakdown of what's been rising that's been hurting us, those are all weakening. I think the Fed sees that. The Fed watches the show. They hear this stuff. Hey, I know Treasury does. Did you pick something up that I'm unaware of? You know, what are you? Yeah. The Yankees won. The Mets won. I don't know. He's so happy. Everybody won. I love the capitals. I hate to stick. He's not grumpy. He's not grumpy. He's like really happy. I'm used to grumpy. We're Frankie. We're Frankie. We're sleepy. Frankie are sleepy. That's, yeah. I'm all those. I'm all the seven dwarves. Look, I think I wanted to see the mega caps down and see the actual stocks up. And we're getting that. We don't want the mega caps to run away because that's just we go back to the universe of seven stocks that are up and everything else is down. Is Tesla considered a mega cap again now that it's right around a $600 billion market value with that move up today of well percent in the stock price? We've got David, Disney's up. Ever since Peltz has been going down, how about that Disney's up? What is that? What about Disney? Well, it's up. Yeah. It hasn't really been up since Peltz went away. Oh, yeah. Yeah. And then you're still chafing at that one, aren't you? You're still upset too. I'm chafing? Yeah. Yeah. I'm chafing. How about Oracle and the Trojan War? Yeah, I did it. Oracle, the Trojan War. Jonathan Kanner is ready to start that deal at a heartbeat. There's no anti-trust on a sky-dance paramount deal. Oh, no. David, Jonathan Kanner watches the show and what they're saying. The show already has to send a wave to regulators all the way out. All the regulators. She does not watch the show. I'm not really. Alina Conde does not watch the show. No, she did. She does not watch the show. She doesn't come down here and she would program her generative AI to figure out how to eliminate you. I'm just saying that if you're going to not go after this, if you do have your assignment to choose to merge it with whoever, that's the Stephen King case, you think you're not going to go after the Oracle? You're not. You're not. The FCC review will be, I'm sure, significant. By the way, there's going to be plenty of asset sales associated with any deal, but unless it was just a non-deal and paramount just stays out there, but any deal, CBS, stations, the networks, all anybody really wants is the studio. That's of great value. That's a very good point. The other, only other thing I'd mention on Paramount is sort of, we talked about it enough for now, but the, you know, I do hear that Cherry Redstone has other bids for just national amusements that don't involve any of the difficulties that we're talking, difficulties of the complex transaction we're talking about. Maybe if they're real, she takes one, and then there's somebody else who's a control shareholder of the company and they can try and figure it out, but Jim, there's no any trust. Don't even go down there. Well, I'll tell you, if you want something that's really relevant today, something relevant to your ten o'clock, just in general, tell me something relevant. All right, so far is down ten percent, oh, and even though the number looks-- The full year was good. They did trim Q2. Wow. The guide, yeah. I didn't expect that, but I want to know is, I know that Tony's going to be, at least it'll be very open, but did it hurt? You know, how much does the cancellations through the loans matter? How much is that convert that they did that people are just leading on and banging it down? That's going to be a very big interview to have, because there's a lot of individuals that are on that stock. Any concerns about Republic First or the regionalists today? I think that's one and done, bad management. I know people would like to read through, but that's a very small fell off a bank that doesn't really have a foothold. I wouldn't regard them as being anything. I could have bought it on Friday if you saw them. We mentioned D.P.Z. before the bell, was up about seven pre-market, reiterates the long-term guide comps. We'll get McDonald's this week. Russell Wiener has done a remarkable job. They have a loyalty program. The pickup has been really strong. It's domestic. It's been a major turn. We got used for a while to having one plus, two plus, forget that. I happen to think that restaurant brands is going to be fantastic. That's Pat Doyle, who has done a remarkable job since he's come back. Remember, he ran Domino since it was fantastic. Pat Doyle is the executive chairman, but it's riding her there. David, they have really turned around Burger King. Watch his Tim Wards. I think Tim Wards is going to be really good. Okay. Guys, recent IPOs, I'm taking a look at rubric shares, which are down about 6.5%. I don't have an opinion, Jim. How about you? No, but we've got a big one coming this week, Viking. I've been hearing a number of things about that video. There does seem to be a good deal of enthusiasm, potentially for the IPO of the cruise of the cruise company. The Caribbean has been fantastic, although I do recall last week, I thought you said sold to you, but maybe I misheard you. Well, World Caribbean is the only one that I want to own, because World Caribbean is fabulous. That's it. You don't want to own the other cruise. Yeah, those aren't doing that well. World Caribbean is killing. There's a look at rubric, which did price above that. So I'm sorry. Excuse me. Enterprise. Software with cybersecurity. I mean, there's so many of those deals that are waiting to happen. Enterprise software, cybersecurity, Enterprise software, that's what people, I mean, that's what was, they gave those companies billions, and now they're trying to cash in. Well, year to date, traditional IPOs have raised almost 11 billion, 3X the year ago. Not bad. We're getting somewhere. Look, I think that the people want them. I, rubric was very well received. By the way, rubric is co-company. There's the ad advantage of being a good company. Oh, there you go. Yeah, right. It's got that going. Now, Reddit? Is that the ad advantage of being a good company? I don't, yeah. How is Reddit? I haven't even looked at Reddit. If you get your news from Reddit and from TikTok, are you being influenced by the Russians or the Chinese? Wow. Who does the most of the important? Why is it 7% today? Well, because Reddit's people are like in. I guess that. Thank you. Thank you for that keen observation. Yeah. Obviously, you did last, but I will say this, and this is from a Reddit user, that Steve, Steve Hoffman has put his infuse with ads. Now, there's some people who don't like that, but you know what? It's not a charity. And the ads are good. Well, one of the big knocks was you've been around for 20 years, why haven't you ever been able to become profitable? Because the user experience, they were unwilling to compromise, now they're willing to compromise. I know so many people get the news from Reddit, it's incredible. They prefer that to say like ABC News. They think it's just as good, except for it's easier, doesn't cost anything, because they've cut the court years ago. These are the never quarters, don't you hate that? The never quarters. The never quarters. You know, the people who just, or they love fixed wireless, fixed wireless, because they don't care about latency. Fixed wireless. They don't care if they get used for a second. You can make an argument that's proved to be more of a competitive threat to traditional cable. What it's like? I have not tried now. You, it's like the T-Mobile ads with Aquaman. It's not as good as... Yeah. Okay. It's not as loud as his name, right? Yeah. But it's Aquaman. Mike Seaver. Is he going to destroy everybody? Mike Seaver, yes. He's going to destroy everyone. He's going to destroy everyone. Yes. He's a secret weapon. He is. Yes. Yes. He thought Ledger was destructive. He's like Lex Luthor. He's a criminal mastermind. Let's test Walker. I had not thought about that. Yes. Jim, quick bit on energy. We got Blinken and Saudi today, hoping that this Hamas hostage truce gets accepted. And oil, meantime, pretty steady here. Yeah. But there's a, you know, we're getting a lot of negative chatter about SLB, the old slumber J, and the deals they did. I mean, and also that the Saudi, that they're not trillion as much in the Middle East, you know, they're more focused on, on soul and renewables and stuff. Yeah. It's going to be specific. Saudi Arabia. So SLB is disliked now, SLB is the best there is. I mean, in terms of being a pristine thriller, a lot of people were saying, "Buy Halberd, not SLB." Do you know that my wife sat next to Matthew McConney on the left side? And Mike Siever on the right side did not speak to McConney at all and told me, "Hey, that guy Siever's really cool. What is it? What does he do? For living?" I said, "No." He said, "He runs T-Mobile." She was, "Well, he was much cooler than McConney." McConney wanted to talk about socks. Siever wanted to talk about music. Siever, you know, you like Dave Matthews. We did get an upgrade of tea today over at Barclays. Goes to overweight. Yeah, I thought that was interesting. Yeah. David, you want to comment on that tea? Sure. I'll be happy to comment. Jim, sort of mixed reaction to earnings from both Verizon and AT&T. Verizon went down big after being up there. It did. It did. It turned around. But Hansus, you know. Hansus, Hansus, Hansus. There was a question as to the quality overall of the earnings. And then there is still this concern overall, as well as you well know, about this government program that's helped to subsidize broadband usage, ACP. ACP, that's the most important thing in the world. Who's going to kick this? Those large just of the companies that have relied on it, at least in part for some portion of their subscribers, is Charter. But it includes AT&T, it includes Comcast. And so-- The native charter does. That question is what we do. The program starts to go away, has to go away. How can you convert those people? How much money do they have? I don't know. I don't know if they don't clearly have enough money to pay their broadband bills. So fully without some aid. But the idea is to get as much broadband to as many people as possible. By the way, one way to do that, ultimately, would probably be Starlink. What? Starlink. Starlink. Yeah? Yeah. Never underestimate Elon Musk, man. SpaceX. What? 180 billion market value? I'm market value. Private market value already? Starlink. Yeah. Just great. Starlink. That's who the real enemy is, and Seabird's not the enemy. Starlink is going to-- Yeah. I doubted it at first, but it's for real, man. Two thousand a. Space Odyssey. Starlink. I got some notes on it somewhere from some conversations I can't find. Dave, I'm sorry. I can't-- You Dave? Me. What? Yes. I can't do that. Starlink. I can't do that. Daisy. Oh, not crazy. Yeah. Hanging on to 51-10 here this morning, as for bonds, busy week as well on that front with the Fed decision, some ISMs this week, jobs number, jolts, and Q1 productivity all headed our way in the coming days. Don't go anywhere. Watch Phillips today, soaring in the market today as the Dutch medical devices maker finally gets a settlement on that personal injury issue regarding to the global recall of its ventilators that were used to treat sleep apnea $1.1 billion and will not admit any fault or liability shares, as you can see, for the month of more than 40%. Dow is up 120. Stop trading with Jim is up next. Let's get to Jim and stop trading. It's something hit your desk. It just seems like a clean upgrade. Jeffery's upgrading general dynamics really good. He's talking about gold stream doing really, really well, bottom line inflection. People should look at this because the defense docs have been kind of left for dead and general dynamics has just been going down during this period where the defense budget was actually below what we floated to. I like this call because of gold stream, not because of defense budget. Jim, what's coming up tonight? I have ResMed, which is, you know, this is also sleep apnea, and a lot of it is going to be about, we'll talk about well, Phillips, whether they'll really get back in the scrum, I don't think so. Mick is really, really good. He's a great CEO and also a terrific guy who understands illness. Most of these guys just want to understand device. He understands illness. I've been involved with him and he's gotten involved with me and some things. He's really fabulous. Was the stock moved dramatically on Friday? Yes, it did because they had a great quarter. Right. But now we realize that royal film is not necessarily going to be in, and I've learned a lot from them. It's very educational, so you're a very thoughtful man. Meantime, we've got the VIX almost back to 15. I know. Well, it looks like, you know, happy days, those numbers, honestly, those numbers that we got, the number we got from Google makes people feel we're going to get a good number from Amazon, which I like, but I think Amazon is going to be good. And then Apple, you know, remember, the Jinx is on. Can we end with the cows? Macie and... What's the names again? Lucie and Macie. There they are. That's Lucie on the left. Macie is on the right end. All right. NVIDIA, it's not picture. At least it wasn't a house this time. Just a couple of cows. All right. Look, these are beautiful cows. Well, I tell you, what's your name? Can't eat them. So that's it. They're now pets. They're saying. Finally, you cannot feed them tomatoes. They hate anything red. They don't like anything. Interesting. And when you throw them a bell, they tend to, like, try to get their head underneath it, and their tongues are so big. They can debut him candy. You learn something new. So much. Oh, I know cows. Some I know cows. Yes. A granny. A granny. A cow's love corn that prefer ending corn. Farmer Jim. We'll see. That is literally the new Farmer Jim. We'll see it tonight, Jim. A mad money, 6 p.m. Eastern time. They're so fine sinking despite this beat. Anthony Noto will join us in the next hour. 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, NBCUniversal, 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. 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/squawkonthestreetdisclaimer. 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. [BLANK_AUDIO]
