Carl Quintanilla, Jim Cramer and David Faber led off the show with markets digesting Wednesday's post-Fed decision comments by Chair Jerome Powell.
He said it is unlikely that the Fed's next move would be a rate hike. The anchors also discussed what to expect from Apple's quarterly results due out
after Thursday's close of trading. Jim outlined what he sees ahead for the stock. Also in focus: Carvanasoars, Qualcomm jumps, DoorDash tumbles, Peloton CEO Barry McCarthy
steps down and the company cuts jobs, Tesla developments, Ford April auto sales, revisiting Wednesday's Starbucks stock plunge and exclusive interview with CEO Laxman Narasimhan.
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Good Thursday morning welcome to squawk on the street I'm Carl K pansen here with Jim Kramer and David Faber a post-9 of the New York Stock Exchange pre market ads to Wednesdays post-fed rally as chair Powell eases some concerns about a rate hike watching some key levels today oil still below 80 and the Vicks just below 15 a roadmap begins with the Fed leaving rates unchanged and the chair saying inflation's still too high that the path forward is uncertain plus we got a big day of course for Apple which will report its earnings after the bell this amid signs of an iPhone sales slump and of course potential struggles in China and we're keeping an eye on shares or carana they are up as much as 40% in the pre market remember when that thing was close to bankruptcy or so people thought well this was a record-setting quarter and we're gonna talk with the CEO that'll be next here on squawk on the street let's begin with the markets in the Fed a day after the chair I delivered this message on rates it's unlikely that the next policy rate move will be a hike I'd say it's unlikely you know our policy focus is really what I just mentioned which is which is how long to keep policy restrictive a lot of takes today Jim BMP parable unequivocally dovish we agree that's a hard one because I think that be it they saying fomc meeting wait and see fomc bias here Morgan Stanley firm hold with the firm hold fomc stolen for time Wells Fargo I mean I think that I like the idea that what he's really doing is saying listen I'm a small for time things will go my way he's confident he was not trapped by the way into saying something stupid like yeah I know I shouldn't have said what I said you know David there's a gotcha element to the to the media but Jay Palen's been around for a long time and he kind of knows how to speak without being trapped yeah he's done enough of these that you think he kind of knows how to navigate them yeah we talk often though about at least what are these mixed pictures that we see in terms of the performance of the consumer particularly medium to lower end yeah reflected in any number of the earnings that we've been going over lately I just continue to wonder how that's playing for him and what and how he addressed that during the call yeah I'd like to mention up I mean we mentioned because conference we just hearing keep hearing the same thing strapped strapped strap consumer is strapped consumer can't afford this consumer can't afford that yes and when you hear that upgrade today very important upgrade by UBS T G X evidence lab just kind of saying listen when the consumers trapped you go this way and quote when I look at whether the consumer is strapped or not I think that maybe the key person to talk to is a guy let's say Ernie Garcia because he has he has a carbana the best view I know because that is a very fractured market he's got one percent of it and people want used cars because they can't afford new cars now we'll get forged numbers but I do think that Garcia has the pulse of this economy well certainly they are relying heavily on the strength of the labor market Jim claims 208 looking for 211 just continues to be robust and we'll see what we get tomorrow it's robust but I think that people I don't know did they spend all the money they had did they become more frugal are they just more aware that everything went up in price and they just don't understand why that happened David there is a mystery and look we're not political but if you were a political person you would say you're trying to relate why when you go to the supermarket Biden should still be president now they have nothing to do with each other I mean nothing no listen but rates are playing out through the economy Sarah talks about this all the time whether it's your mortgage whether it's your car loan whatever it might be in terms of at least your borrowing and if if you are you know if you're strapped in some way it may very well be because your monthly bill has gone up in some fashion as a result of what you're financing yeah insurance electricity we never talk about that electricity went up yeah I think it would go up because there's nothing involved with other than to say not gas being lower but it is a quandary and I think that the quandary has been met with things like Netflix which you get is positive not going out door - saying that you know it's okay it's not not spending more that way there we can't find them for the most part we can't find with this consumers who just had his or her student loans forgiven we we do know that there is a bifurcation a very rich consumer is still spending a not rich consumer will splurge on something it's experiential it's almost like you have two economies you have the Taylor Swift economy which is just using you know something that is catchy but and then you have the people who don't even want to do that and that don't even want to do that I mean I feel bad for them because they are they feel like as we learned at college they're lumping proletariat there they feel that they are at any given moment one step away from you going through the safety net and I just you know we just had a retail sales print at seven tenths I agree I don't understand how these companies can say this stuff because to me we have unemployment that's so strong that allows you to be able to have to trade up to get a better job it's almost as if and this is why I mentioned politics to be human there's a negative mindset it within the context of a positive economic pattern meantime OECD raises their global growth forecast for the entire planet and they take us from two one to two six it's not sure how that's bad it's a house in time for heaven's sake and I just think that the negativity may have much more to do with current events than it does with your wallet maybe I don't know I mean I'm looking at eBay we're gonna have Jamie I know about execution you think that's poor execution I'll ask them about it because of course they are talking about consumer confidence being at low levels that's what you're talking about we have for execution July of 2022 and navigating ongoing challenges in the global economy well you look the ongoing challenges had definitely what what your pocketbook I mean I'm just saying I don't know Carl smiling well look I'm struggling with the idea that any given time in the last 40 years if you had job mobility like we have now you could better yourself move up and make more money Chipotle the managers are making $200,000 there and they're getting stopped one of the reasons why I have to split the stop there is no depression or negative thinking if you work at Chipotle if you are a barista I got to tell you you're a TJX today yeah we'll talk some wayfare we're active customers orders per customer revenue per customer all with green arrows we'll get to that later I mean I got wayfare and it's incredible because you know wayfarer they're not making any money remember they're the but they they fit the zeitgeist what about Etsy does that fit the zeitgeist look I think that that Josh for every wayfare I'll give you an Etsy you wanna go back and forth there no I'm Josh so we would admit he didn't execute well was it's just execute so it's execution when it comes to not a good quarter not the economy or not the weak consumer and it's just good execution if in fact you do better yes right so Starbucks obviously which we'll talk about in a bit that was all execution yes okay McDonald's price that was price yeah Shaq Shaq looks good today yeah it'll look at Shaq well look there are guys that you want to go spend spend more money I remember Chipotle but through very big price increase and it didn't hurt them at all but I do think that there is a cup of coffee that can cost too much Darden we got that was pretty that was okay well they got but not great that was a dare go that's a push all of garden is a push because they're they had the raised price but it didn't hurt them didn't it didn't hurt them as much as I thought but you know look at look at MasterCard which by the way I think this misinterpreted but the presumption master card is is that consumer spend is slow down but then the presumption of visa and American Express is the soon spend is suspended has gotten better mixed pictures in a lot of these and by the way my feedback is a very good executor in MasterCard there I might try to investigate that I didn't think MasterCard was that bad I think there was headline bad but I I come back to execution when it comes to execution or price the execution at QSR restaurant friends with superb superb and they blew away the number when we come back we will revisit Starbucks of course after that interview yesterday in the stock slide with the company CEO told us on this program get to a bunch of other names Qualcomm Corvo novo neo with futures looking solid on this Thursday don't go anywhere for more than a decade 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happening and I don't know how you can say it on our air Jim the facts are we have improved speed of service quarter over quarter if you look at how the processes that we are rolling out particularly around peak what we are finding is that we have opportunities to improve that even further with changes in processes and tools that we provide to our partners at peak but you said that people are using the mobile app and they are not able to get what they want because they can it's too slow I think your throughput is awful sir and I do not understand how you can say service is good and also say at the same time that throughput is awful Starbucks chief locks been narrow simon with this yesterday company shares coming off their worst post earnings daily decline in about a quarter century look I'm not saying I'm some expert just because I own restaurants for 12 years or that I was in this business a long time ago but there is a there are measurable people who know what they're doing Ron shake when he ran Panera most certainly Brian and nickel when he runs Chipotle and they know that the key is throughput which is to getting people in and out there was a moment where Ron shake told me where he's son went into a he went went to Panera and said dad there's a mosh pit there because people who don't know what to do in the waiting for stuff so what he did is he created Panera 2.0 he went to Charlotte North Carolina developed a new set of stores try to figure out a fix it and it spent didn't do it overnight said listen I got to spend a year he speak to him every month saying when is it could be ready because it'll be ready when it's ready but he literally found a second way and then he rolled that out and that's what Starbucks needs to do because they have trouble throughput I was a little surprised I mean when when you go over the numbers and the throughputs bad and things are deteriorating you can't come on our air and say the throughputs good and things are getting better because there's just that's a suboptable strategy it's ill advise to come here because when the numbers look the numbers of the numbers and the forecast is the forecast of course the great Frank Slootman who was used to be at snowflake and you can't do it it's just not right you know I had a bad year in 2001 at varsity I mean at 2020 look 2001 and I said bad year 2020 if you would ask me how I did and I came on and I said that year and you were aware of how I did here's what you'd say to me get off my show I don't hear you I don't hear you defending a level here at 75 what you did at I know why do you still own this thing because you can't sell it after you we talk about I told you the rules again and again I know you do but I just wonder I mean listen it's hard man it's hard to get all this stuff right from the stock pick I screwed up I mean I screwed up I still own shares a Comcast I mean yeah well you just you have the only they were allowed to own by the way well if you worked for ABC you could sell your Comcast yeah yes okay then I don't Disney oo she's never poured next week would have been a lot actually no some pills where are you what I know every time that's not some 22% this year and I would so next week we hear from Disney don't do this a linear to do this a linear thinking why the problem is this problem is Starbucks is that it's it's they have a very big throughput problem they have a they have a mobile order and you get there and you have to wait for it because it's too crowded now that you could say well too proud of this a prop causing thing but I'm saying is it doesn't matter if your numbers are going down which is what Starbucks numbers did you can't say this service is getting better because the numbers don't let you I mean this is the numbers I mean what would I've done if I would say look we obviously have to rethink the numbers are going down we have worse quarter than previous quarter and we're gonna solve the problem but we didn't do a good job you know what happens when you come back and you say that to me I think I just found out I'd say thank you sir yeah thank you let's figure out together how to get it back that's all I wanted was a recognition of what was in the conference call and what was in the numbers which was the things that you're in and then it would have been very convenient there's a way to be there's a way to make be a convivial person say what you said in the conference call that's all meanwhile we're waiting for Ford auto sales for April let's get to a little bit today hey Phil hey I think the shares of Ford April auto sales falling 2.4 percent but the numbers in terms of the types of vehicles they sell that's the most interesting thing here ice vehicles down 9.2 percent where are people shifting well they're clearly shifting towards green vehicles if you will EV sales in April more than doubled compared to April of last year up a hundred and twenty nine point two percent hybrid sales up 59.5 percent look at the F-150 hybrid the Maverick hybrid best months ever hybrids and EVs now make up 14 percent of Ford's monthly sales a year ago guys it was eight percent we've said this above Ford we've said about practically every automaker legacy automaker there is a shift towards EVs but more towards hybrids that is clearly coming through in the April sales numbers let me just ask you Phil they it for really decided to go kind of different they really did not emphasize EV on that last com school are they just clearing inventory at a low price is that what happened in terms of EVs or hybrids you know hybrid they're doing great I'm just saying whatever they did EV you know the EV so low now is that Mustang solo that we should go by one and they make a good deal well look they did see that when you lower the price as they did on the Mustang Mach-E take a look at the April sales numbers for the Mustang Mach-E I mean more than triple compared to where they were a year ago and keep in mind they're also increasing production on the Mustang Mach-E and gradually on the F-150 lightning though the lightning production is not going to be what they originally thought it was going to be pricing still is what's driving EVs but it was just at Ford but with all water makers Phil I got another recoil yesterday on my Maverick another one on this time on a tailgate when are when is the quality going to get better well on the last call they talked about it Jim Farley talked about the fact that they held back on releasing the new F-150 until they could reduce dramatically reduced right the number of problems so that they would have fewer recalls I know they believe that they're moved they're making progress there they are but look anytime you get a recall announcement you know it it's sort of like oh here we go again but they know they're making progress I know what I'm doing Saturday film I'm visiting my Ford dealer we're gonna get to a lot of other auto news including some news surrounding Tesla interesting know that Morgan Stanley's Adam Jonas today we'll get Kramer's mad - count down to the opening bell one more look here at futures don't go anywhere the spirit of performance defines Accura and now it's electric introducing the all-electric ZDX Accura's most powerful SUV yet while what powers their cars may change the energy that makes Accura never will crafted using the same formula that brought them electrified supercars and multiple MSA 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 Accura has been doing since the beginning we could talk all day but the only way to experience this electric performance is to drive it yourself unlock the energy and order yours at Accura dot com in general what we're not seen I think the signs of strain on the consumer but I think it perhaps has something to do with the segment that we operate in which is you know digital and delivery I do understand that there are some headwinds that certain merchants face when it comes to in-store traffic but when it comes to all things digital we're actually not seeing you know I think those same signs of strain all right that was Tony Chiu of course CEO of DoorDash founder as well let's get to a mad dash about DoorDash which is gonna be down sharply look I've got to tell you I thought Tony Chiu was self-effacing in some ways to self-effacing this is an example of the opposite of what I saw in Starbucks I thought it was a good quarter until I read what Tony felt he should have done and how much better he should have done these are perfectionist he was not happy they by the way David they took they have a lot of stock based compensation yes and enormous and that made me feel like they haven't done the big pivot that we know they did the Airbnb's have done but I know he's very hot harder himself and the incrementally negative read-throughs about Uber Eats I thought they were okay I was surprised that the stop was down as much now it is this was a victim of this okay yes it's just up a lot but when you read through it you've got you get the sense of a great CEO who's just saying listen I didn't do this I didn't do that by the way there were some rule changes in New York in Seattle that kind of hurt things for him he said it still didn't matter that matter that much but I find that this man is such so self-critical and there was so much self demonstration in this that I thought he took the stock debt interesting I think he did and I have the life known him from the restaurant business he just is a perfectionist yeah this was a quarter which just said you know what I'm still not doing my job as well as I'd like really remarkable conversation all right well we'll keep an eye on sure it's a door dash we'll be talking a little Qualcomm and Apple we'll talk Apollo earnings got a lot more for you an opening bell of course a little out a little less than five minutes from now and by the way don't forget you can catch us anytime and anywhere by listening to and following the swap on the street opening bell podcast Apple is due out with quarterly results after the close tonight the company expected to report its biggest revenue decline in more than a year but watches on to see what Apple might say about adding generative AI to its iPhone as well as overcoming the sales slump in China Jim the streets hoping for maybe some numbers on Vision Pro yeah look I always say Apple on it don't trade it I thought the second he's upgrade seal the fate of the quarter in the sense that when a bear becomes a bull it's a very dangerous situation when you have China this quarter and China disappoints which it has for every single company and it doesn't matter you're bad I mean as they order had its first good quarter of a China is weak any time that you can say Starbucks China was at minus 11 this rate of the stock that was part of the problem China's not that good any place where China's not that good it is over emphasized almost over index in the brains of the analysts so beware that China will not be that good for Apple so let's get the opening down here and the CDC's all time to change the big board it is make a wish kid Bretton Burger and his family doing the honors bringing the opening belt we're hoping to get a picture with him later on this morning at the NASDAQ it's Israel Advanced Technology Industries Association as breath looks decent here at the open gym 15 minutes of the market with some sort of I don't know like a scrapity of books because once pal made the point that whoop you know the next movement slightly is going to be a kind people just read the cyber leaf and you just had many of the major companies that we've been looking at here I think about Google think about Amazon I think about Microsoft really shoot up and there's what those were the bell letters yesterday they were great yeah there's some discussion about maybe a failure once again at the 50 day for the S&P a few minutes David I know you don't hold it to the technicals but there are people who just say all right bounce off didn't make it that's enough and you know I think both you and I agree that that's a little too glib that there are companies that are doing very well and they yesterday after pal was done they were rewarded Microsoft have been below where was after that great you know when they announced a quick quarter that seemed that seemed pushing yeah right stocks up at six percent this year Microsoft is up right now let's talk a little Apple can we guys sure over 1% I guess hopes for hopes I mean we'll we'll get the quarter tonight we'll obviously be talking a great deal about it tomorrow and everyone's excited to see what their own capex is going to be given the enormous numbers we've seen from Microsoft and Amazon and meta and alphabet and out so much of that devoted towards AI generative AI you know the hyperscalers is a little different than meta spending the money in the way it is but and Apple as well not a hyperscaler how much will they be spending will there be the inclusion in a very significant way of generative AI on the next iPhone will it bring a wave of upgrades can seem to be the enthusiasm they have to rely on a Google or do they have plans themselves you know it's interesting because no one's a lot to mention Apple who is a supplier now we said yesterday that Skyworks was all bad you know Skyworks saw an inflection at the bottom Qualcomm it looked like business is usual for Apple in terms of a read and we'll get to Qualcomm's numbers in a bit because yes stock is up and we should spend all time on it but on but on Apple you you said consistently own it don't trade it for the longest period of time exactly you know this quarter is not conceivably going to be a strong I said the stock could go to 160 and I would still like it but I'm betting one is that the next iteration of the phone and we're getting closer to the June meeting in which we're going to get perhaps more details right absolutely need to see that and I've been saying listen let's make division pro both consumer and business to business they have always students avoided any business business product at Apple right and the vision probably you guys I may have been talking about I can barely hear it during the during the bell there but that's not really doing much anything right now no but maybe they can reignite it and we want to see of course more companies right for it the more you're right I know you're a believer in the enterprise in terms of what that could mean you came away from the Nvidia meeting as a believer in what you could do if you can put everybody in one of those things if you talk to the hyperscalers in here we're talking about magnificent seven you call though tell you listen we're not we're on allocation for in Nvidia we're we have good relationship with Nvidia meaning basically hot hand but we also have to develop our own ships simply because we don't have to get enough because Nvidia can't provide them AMD has a very good alternative and people will be going to the MI 300 but if you look at Taiwan semi the stock has made a really big recovery and that's because it turned out well you know what things are a little better than expected the semi world and I just think people are too negative I even think everyone's dumping on Corvo today yeah Corvo wasn't as bad as people said they have a they have a quarter gap yeah a bit of a sentiment split between Qualcomm and Corvo today although Apple is the top performing down name at the moment but I get look at any time you come in hot and you have China it's just a mistake Tesla so let's talk Qualcomm because the company did I you know look at a couple of notes here I mean generally seen as good results for Qualcomm and you are getting the follow-through in the stock market at least amongst investors stock bonuses see 9% right now this is 183 billion dollar market value company so they're good or they're good and not bad handset now in I'm reading a city note here that says the handset markets good but we're not a believer in the AI in AI and handsets yet while the printing guide were solid meaning the earnings and then the guidance were solid we believe a handset upgrades cycle driven by AI at the edge is a year away given the lack of a killer app that gets you back to of course the conversation we just had in part about Apple but overall Qualcomm more or less delivered and the guidance certainly didn't scare anybody away no they didn't they had there are 10 companies that write on it a research in 10 price targeting creases yep of all different variations but the theme is is that business has gotten not just strong but very strong and very quick and I also think that they're getting some credit for automotive but I mean he talks so much about automotive remember I can remember my dentist both of us it's like Christian I'm talking about auto auto and they finally like getting somewhere because it was a lot of promise they not yet no no not yet no I'm not kidding it not yet I do think that that people a lot by the way and breed had a call yesterday no one paid attention to it we talked upon yesterday yeah well I mean I just that a lot of that was because they're seeing handset recovery and that's what Qualcomm is seeing after two years low so at handset recovery a lot of companies in the handset business and that's very positive news and it reverberates you can reserve we're right all the way to Texas instruments we shouldn't have a day of court last time and brains and Comcast director do you know that's a kind of Philadelphia thing I was looking through the proxy yesterday it's Philadelphia yeah oh is it is that what it is yeah well I am isn't it not that's on the tablet and breeders and look at breeders fabulous Ed brings been around a long time at this point it's like my same years me stop it he's he played he played a cancer rock I played in Springfield I think it said I crushed this and not Delco Manko well I want to I want to tell you this man I crushed it I want to go to the alternative asset managers yeah take a look at shares of Apollo as I work my way down here to my own list up one point three percent let me quickly take a look I also mention it because on Monday Mark Rowan will join me it's gonna be the the milk in the annual milk in institute event the big one from LA and we always have an interesting sit-down obviously talking about Apollo's earnings not to mention sort of the broader markets particularly the private markets and private credit where they are enormous 40 billion by the way was the inflows overall year you know the some of the research year FRE was in line more or less doesn't seem to be that much enthusiasm in terms of the actual numbers but that said gross inflows of 40 billion there are now six hundred and seventy billion dollars in assets under management most of that in private credit where they are just enormous you know we call them alternative asset managers they used to be known as buyout guys that is far from what they are these days of course there are five thousand five thousand people originating originating loans essentially for private credit most of it investment grade this incredible theme obviously the insurer which ensures people's retirements is a key part of the company hundreds of billions in assets they are being deployed into those markets as well 95 percent of their assets there are fixed income I think five percent hybrid equity so much to talk to Rowan about looking forward to that interview on Monday but did want to give a little bit of a preview here generally a positive review for the numbers again the assets in particular because in this environment the returns you can get private credit and again Mark will tell you hey it's investment grade it's the world is changing is what he would say it has said in any number of interviews in terms of the available a number of public companies the lack of price discovery he really questions why you need daily liquidity he's all about the private markets well what's what's really incredible David we were black let's say a blackstone here yeah but they would say is that we run a large number of companies they would not say we are about to put in this company an IPO this company's gonna be sold no they are company runners right and that well that's a new thing that's their portfolio companies but again what I would point out is that the the trillions ultimately there are that are now bankers that have moved away from the bank so to speak in terms of loans in terms of credit that are now in the hands of these private lenders is is a seat-anger the large bankers when you get them off the desk they always say the dangerous thing these guys well they do they want to say that because they claim that they're obviously not under the same regulatory regime at the same time of course they're not levering things up the same way the banks do and they're not taking deposits right they're not fooling our money oh so it's not our money yeah rich people then them for themselves Jim commodities worst back-to-back days of the year cocoa we know is broken yeah we got oil still below 80 and with that of course the requisite headlines about OPEC potentially extending voluntary cuts well I think that that when we talk about what's happening with commodities why don't we say look commodities could be coming down in part because the Fed has been a little more restrictive I think the commodity spiked because we had a war premium that seems to be going well what's that's a tricky one copper was EV so the spike in copper was very late because EVs have been cut back we heard what Phil said they're selling inventory EVs so there there's really was no reason for a commodity spike we know that from the railroads that all talk about commodities I don't know it got it got out of hand and I think it's getting back and it's a good it's good for for Fed yeah we'll see we got CPI coming up on the 15th you mentioned EVs a lot of news on Tesla on potentially pulling back on gigacasting more hand-wringing about the EV charging pullback yeah yeah and what this is California data Q1 California sales of cars all passenger cars Tesla went from number one to number three now behind the Civic and the let's see the Honda Civic and the Camry hybrids in California right well her Phil's been on the hybrid case better than anyone he's been saying over and over again that's what people like Ford's got the most hybrids David I'm surprised you have not said Jim why are you in that fort for your travel trust because that would be a good one to make fun of me well I've done that already well I just never stopped you from it hasn't but I try I try to kind of keep you upright during the course of the show I don't want to beat you too hard you know okay so I'm gonna I'm gonna lay off on that I appreciate me Starbucks is another issue why you didn't sell that I don't know I thank you for getting me out of Boeing oh you're welcome you welcome I appreciate you saying that guys let's we just looked at oil let's talk a little about Exxon pioneer and then let's get to Chevron and Hess as well Sheffield's the greatest well the Exxon acquisition of Pioneer is gonna close tomorrow it's gonna close tomorrow you can take a look at Exxon Chairs and Pioneer shares but it is not going the new board the board of directors of Exxon will no longer include mr. Sheffield as a director that's a deal they reach with the FTC in which the FTC at least alleged that the Pioneer CEO tried to collude with OPEC on oil prices now that you know so the FTC says his past conduct makes it crystal clear he should be nowhere near Exxon's boardroom American consumer shouldn't pay on fair prices the pumps simply to Pat a corporate executives pocketbook as you might expect mr. Sheffield and Pioneer strongly dispute that read of the situation and believe that the FTC complaint completely misreads his his actions but he's stepping aside from being on them ex on board and Exxon says in response to the FTC's concerns we won't add them to the board we will be closing the deal tomorrow we look forward to implementing the integration plans they say they've jointly developed with Pioneer over the last six months again from milking on Monday I am going to be joined by Darren Woods the CEO of Exxon will be able to talk about of course this deal what his expectations are for that integration plan perhaps in more detail and my guess is we'll also talk about something that he was talking about with Becky on on squawk box last Friday after the company reported earnings thing we that continue dispute with Chevron over the joint operating agreement that they have with Hess and whether in fact Exxon has the right of first refusal because it is a change in control it really may come down as little as 11 words in that joint operating agreement having to do with a carve out for the change of control but they're going arbitration the ICC that's gonna potentially yes and Harris it's UK law gets complicated see nook is also involved they own 25 percent of Guyana remember Exxon on 40% and a 45% and Hess on 30% has bought that stake for 30 million bucks well 30 million dollars John did that yeah and it's worth 40 billion now good John not bad right but of course the value of Guyana in particular given what we heard from Exxon and its most recent earnings where they're going to be up to 600,000 barrels of production a day there are Hess shareholders Jim who argue if Hess was actually not getting but by Chevron stock would be higher stock would be hard because I am for so strong because he did an at-market deal that is John Hess he is stepping on the board of Chevron he wanted to do this deal with Chevron that's where he wanted to be only talk to them never talk to Exxon it's my understanding but there are number shareholders who are unhappy with it by the way they can write letters I think they are writing letters they can say hey Chevron should be paying more it doesn't appear though an actual proxy fight which would basically have to be filed by Monday or something like that to actually get this thing in front of ISS and bless those individuals down I will on Monday they paid a good price for Pioneer right whereas there is this argument that Chevron didn't do as well you know or Hess didn't do as well right he didn't test didn't particularly give him the strength of Guyana which again back to the dispute this really unusual dispute between Hess and Exxon Hess is so interesting so you know I just say mr. Sheffield taught me everything but you know Aubrey Clinton told me about natural gas mr. Sheffield told me a great deal about oil and it would really be I don't I hate to see this happen because he's a he's a great man and he led in terms of environment and he has been the dean of the group so that would be a blackboard we haven't gotten to Peloton Jim Barry McCarthy stepping down a CEO he's gonna remain a strategic advisor through the end of the year they do miss they guide lower and a couple of board members are gonna be co CEOs and I think we have some sound from them take a listen we do want to reiterate that Barry's done a tremendous job stabilizing the business he came in at a very challenging time and he'd been really relentless in right sizing an aggressive build out that was not uncommon for many companies during the pandemic he had to navigate a lot of curveball thrown his way and he's done some incredible work and re architecting the cost structure and again really big highlight I want to highlight that under Barry's leadership we achieved one of his primary goals which was generating positive free cash with this quarter and we do expect to do the same thing in the fourth quarter and for the full year in 25 but with the business more stable the board decided to pivot to a leader who's gonna architect and leave the next phase of growth for the company meantime Jim cutting about 15% of global headcount it's gonna be about 400 jobs yeah I had high hopes if Barry could pull this off this is a very hard turn it Barry couldn't pull off I don't know who can you know it sounds like it's stable but believe me Barry is one great operator this thing is just who could who could somebody buy this thing put it out of its misery what is like a dying worse or something yeah okay I mean who is there anybody can just pick this thing up and get it over with anybody can do it pick it up and get it over me like turn around no just get it over I don't know I don't know like what what's the growth what possible growth plan could there be for this there's no no bear I told you Barry can pull off and nobody can pull up Barry's fantastic he's fantastic I know you were you were very enthused when I took over he was in depth look I mean it kind of miracle work fitness is always tough it's a shame the product is the product remains very strong I think I mean this is one of the few subscription businesses that hasn't worked yeah I mean Peloton was fan it was supposed to be like I thought it'd be like Spotify and that was didn't work out that way no maybe they'd go pro hey it did remember Google but yeah tried they got did they get it they got fit yeah that was during the period with the dark days of the room like three years they're up to now Google is very transparent remember when you cool was like what's Google doing we have two health care departments they don't even know the dead to help me meantime 50 36 trying to hold on to some initial gains here following that rally that fizzled a bit yesterday a busy day for bonds Q1 productivity was like on a quarterly basis but year-on-year goes from 27 to 29 a lot of discussion about decent trends on that front we're back in a moment we haven't got into no vote yet would go V more than doubles they raise the guidance but expectations must have been high Jim look I think really he's got you know who's got enough product NATO that's what's gonna happen interesting man it's fivefold increase in people using the drug no no I'm saying it's actually the number of factories you have who can I know but they just bought all the stuff from cattle and they're gonna be able to make a lot more of it yes and 25,000 US patients are starting it every week up from 5,000 in December I just that's okay okay book I was saying this stop was at one point up I'm used to up down a dollar them for words it's just a question who can produce at some point it's actually gonna become relevant what people eat and don't eat on these things when look when they start to really hit a really kellinova I did snack food fantastic numbers we're we're back in got Steve K. Helene coming on next hour is he okay we've got a draft Kings which is doing exceptionally well and then best is show was eat brinker which is put together again Mike if you execute well they will come and you'll make a lot of money brinker's executing it the highest form I fascinating restaurant business right now is just crazy so many disparate signals number after prankers got the larger seller of margaritas right before second a mile this Sunday we'll see you tonight about money 6 p.m. Eastern time you've been listening to the opening bell one 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 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 what's on the horizon for financial markets at PJM 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 PJM a leading global asset manager
