The opening hour of CNBC’s "Squawk on the Street" with Carl Quintanilla, Jim Cramer and David Faber is broadcast each weekday from the floor of the New York Stock Exchange, on site at the opening bell with the up-to-the-minute news investors need to know and interviews with the most influential CEOs and greatest market minds.
Squawk on the Street
Squawk on the Street 05/16/24
The opening hour of CNBC’s "Squawk on the Street" with Carl Quintanilla, Jim Cramer and David Faber is broadcast each weekday from the floor of the New York Stock Exchange, on site at the opening bell with the up-to-the-minute news investors need to know and interviews with the most influential CEOs and greatest market minds.
Squawk on the Street Disclaimer
- Duration:
- 45m
- Broadcast on:
- 16 May 2024
- Audio Format:
- mp3
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 spider S&P 500 ETF spy a big idea that inspired the world to invest differently and still does what can you do with spy before investing consider the funds investment objectives risks charges and expenses visit ssha.com for a prospectus containing this another information really carefully before investing spies subject to risks similar to those of stocks only TS are subject to risk including possible loss of principle loves distributing distribution market insight and analysis you're listening to the opening bell of CNBC's squawk on the street Thursday morning welcome to squawk on the street I'm Carl Keaton here with Jim Kramer and post-night of the New York Stock Exchange favors on assignment pre-market's pretty steady as the Bulls look to defend these all-time highs got decent results out of Walmart in Cisco we're on Dow 40k watch 10 year 435 on some mixed eco data today our roadmap begins with rally mode S&P eyes its 24th record close of the year wal-mart is on the move the retailers see some booming e-com sales and wins over some high-income shoppers and of course buffets big surprise revealing a secret minority stake in one of the world's biggest insurers in Chubb let's begin though with the rally S&P closes above 5300 first time and the Dow does inch closer to 40k Jim you said this morning overbought and but things can remain overbought for a while when it gets this overbought knows when there's so many different fires we've had this a couple times it's struck with a bill poll does the great work for the as for the oscillator basically for us best people marketplace you can actually have a sustained churn flop and chop it doesn't plummet if you're up at these levels it kind of just marks time now we did have one of these last year where we came in the first couple days the Nvidia's got slammed the big momentum guys got slammed then they came right back so I know it sounds odd but you can get it to an exalted level like we are now and you have some rotation internally but it's not like when we're like plus five six really fast and then boom so I know I don't want to be complacent but when you see a Walmart and you come in and that's the leader and then the leader yesterday was the industrials leader before that with the utilities that's that really kind of benign rotation it's not a vicious whip and it's not being led by the magnificent seven which is really sensational is that why good example talking about the headline indices Goldman's not moving off 5200 you're Denny today not moving off 5400 oh I mean look I think that I've been doing this analysis of we have some managers come on and they really rebel against had yet there's so much index buying and I I think that it's almost people best I really don't care how they invest but you have so much index buying going on the buybacks are pretty furious so if you do come in and you want to buy 2 million shares of even an even an Apple you will move the stock up Apple is a big buyback obviously when you buy S&P you're buying Apple so there's a little bit of a short supply I'm not going for a stock shortage call that's always too clip but I am saying we didn't have the IPOs we're above last year for IPOs but not by a lot so we don't have a lot of new supply we've got the investing up 61% of the people now are buying are back into common stock that's the highest since 2008 so you just have a plethora of buyers not a lot of sellers and so big buyers move stocks but again I come back to the buybacks as being the most significant issue right now that the windows are open yeah they're in there buying the banks geez the bank banks buy a lot of stocks Apple that buyback turned out to be very very meaningful and there are a lot of people got off the Apple train and you know that was a mistake yeah the biggest in history meanwhile the sentiment Jim is pretty positive yes today soft landing still is intact B of A stagflation is so 2022 the risk now is a re-acceleration into services I think that one of the things you got to go back to the Home Depot quarter and the Home Depot quarter was a I said it was downbeat downbeat quarter but what really struck me was that they were talking about service inflation they weren't so specific this to say that their own customers the contractors are charging more but we've got to get service inflation down we look we're going after rent we're going after homes what we have to start talking about services is going up too much as 2019 and then the very good article in general about hospital costs going up so I'm not I don't believe in stagflation because we have good growth I do believe that there's still inflation and that the Fed will possibly do a surprise cut but I think the Fed needs to wait and one of the things that we know waiting is good for stocks we didn't think that we use it waiting is bad but this whole anticipation of is actually better than the actual yes at least we do have and these comments out of Walmart today Jim General merchandise here on year mid-single-digit deflation and then low single-digit inflation on food okay so I mean you remember today they talk about how the wealthier are back any other guy I joke but I always tell them on my my daughter was here yesterday she's wearing her combat boots from Walmart she said this is what you wear if you want to be stylist you want to be styling you wear your Walmart combat boots immediately of course I sent that to a French bread down a dollar take a big prices down for for a product in soda big prices down for frozen pot pies he's just examples boneless skinless chicken sub three dollars per point they are the inflation fighter now you're not going to get the government to say the reason why we could have peak inflation is because of Walmart that's not their style but I look at the Walmart prices and the Costco and prices and I really am impressed that that's who's really keeping food inflation in check these Walmart this is an obvious just representative of the things that Walmart's doing the prices there are are are really like Eddie you know crazy yet they're insane I mean you can't believe aisle after aisle the bargains in Walmart and Walmart by the way is is so exciting because they have the fashion aisle is is is incredible and my daughter went to Parsons she's not a choker but she's just all her friends shopping the fashion of Walmart that's a big move on a huge cap just serving by the way makes it odd display page one journal piece today on how the regime at Walmart is on shaky ground because in order to keep 4% sales growth you need another 25 billion in sales every year I thought that that that piece was the kind of thing that I just put missed the mark because when you get these really incredible companies they find ways to do these things and I that reminds me of all the people all the articles about how Tim Cook can never out do the phone I mean Walmart can us do so many things e-commerce of 21% maybe the e-commerce to 35% e-com is now 22% of total sales in 2019 it was 9 how impressive is that I mean they're doing great things now Costco hasn't done as much so I could have come to stores but this isn't an era when Amazon is ascended so I know their share take and I think that Walmart's always reluctant to say listen we're you know we're destroying small business big but there are still some chains I understand by the way why Rodney McMullen from Kroger feels that he's right in the FTC's wrong that they need to combine with Albers because what a juggernaut Walmart is but the same time Walmart is a Walmart once prices to be low and people who shop at Walmart realizes they are indeed getting the bargains that Sam Walton used to talk about means I'm advertising up 24 crown money inventory in the US down for how about the fact that they closed those mini clinics when they realize they couldn't make any money some people were critical that same well that's an example they can't grow how about they just had the guts to admit they made a mistake how many managers in this country was by that oh my and when I went over with them it's a little staffing some problem why would we want to do that it turns out to be not as synergistic and then I'm going to start worrying about Karen Lynch and CVS cuz if Stevie's a problem for Walmart what's it like for CVS especially when Amazon is gunning for the front part of the store and now once the back part of the store with automatic drugs that are cheaper than CVS very challenge let's touch on Cisco Jim the the year on your revenue number is is awfully weak down 13 worst in years but talk about stabilization of demand we got Splunk now rolling into results right now that was a quarter that I have I mean go to Ben Wright just by the way it's the kind of the kind of a coden which is listen don't get too excited I went over it and I thought that Chuck Robin CEO did a very good job explaining about how we're done through the D stock where it got new orders Gary Steele's gonna stay which I think is really important because I was so afraid he'd leave he was the CEO Splunk and he's just a miracle a miracle worker but I have to tell you that in the end I was surprised to see the orders could be up so big given about what what just the things were not so great just a six months ago so I want to see how this works I don't think that this is the clear I don't think this is like the bell one off and it's and it's good I want to see how well they integrate with Splunk and one of the reasons why the stock was up three and then came lost two bucks I think a lot of people I do which is like it's good but let's let's instill show a lot of software which we like a lot of the long-term contract which we like but a lot of spots a big zero who anticipated my mind there Splunk's a big zero meantime meme stocks we continue to watch oh what is steam ahead of the open a day after both game stop and AMC yeah 20% we've been getting these halts Jim for volatility now on the downside I felt bad the people at four o'clock they were selling it down to 33 and I said they didn't get the collapsible chair memo remember the other day that started with the Hello Kitty with the chairs and I find it what's happened is is that this was they just didn't have the short positions and then Adam Aaron came in and used them to be able to pay down there because Adam's hysterical you know he said what he's a legendary cinema funny man so you think there was a plan and a drawer for a return of this moment and as soon as it came they're like let's go well yeah Adam Adam definitely I think that that Ryan Cohen is a great mystery man he's uh he he's inscrutable Ryan we don't really know what he's up to we know we made a lot of money and that bet me on I always salute a guy who made a lot of money even as I think that I wouldn't not necessarily have approached it that way it sounds though like you think this this whole phenomenon may be short lived this time because of the short I think it would help if a company would do it well companies not losing the money that it was but we have a cycle and you'll hear it from take two later you know this is not a great business because everyone did it online and the they picked a company there's so many companies they could have picked that they could have run and gone and this one just isn't as good as when they first ran it and and gunned it you can go back by the way if you look at this kitty guy he still got the rationale for why he first gunned it and there was pretty compelling but that was then and this is now and yet your criticism of regulators the 24/7 casino well they don't care the regulators I think they view everything as caveat enter I think that they kind of really blew the Bitcoin thing when they had a chance they could have gone after the coins that were less legit and become a world leader the way Tim Massett who ran the CFTC recommended and they kind of split the CFTC and the SEC and it's not really clear where the SEC or they let this back phenomena go I know that their hearts in the right place I know that they have a lot of good thoughts but I thought the Jake Clayton on squawk was unbelievable he said look this there's no place for this but I think that the SEC maybe feel like the 34 acts there's nothing about memeing so therefore meme away well do you think I mean you'd say you you've often said the FTC is heavy-handed you think the SEC is too light-handed I think the SEC is is too caveat-emptor I do think I have felt that there's something Chub has an auto insurance business and Geico is it I mentioned this morning I'm I wonder whether I mean if the FTC wanted to kind of just show listen we have guts maybe they look into that we're gonna talk about Chub and a lot of the 13 F's as we finally got that mystery unveiled when we come back down is holding its investor day here at the NYSC and Jim Fitterling is going to join us at post nine break down the company's growth outlook futures awfully close to the flat line today a lot of retail to get to including Under Armour goose dillards we'll look back at Disney and Netflix yesterday talk some deer in a minute at ever North Health Services we believe costs shouldn't get in the way of life changing care and we're doing everything in our power to make it possible behavioral health solutions that also keep your projections at their best it's possible pharmacy benefits that benefit your bottom line it's possible complex specialty care that cares about your ROI it's possible because we're already doing it all while saving businesses billions that's wonder made possible learn more at ever north dot com slash wonder support for this program is provided by Chevron demand for energy is projected to continue rising in the future to help keep up Chevron is increasing their US oil and gas production and they're innovating to help do it responsibly across their operations including their Gulf of Mexico facilities which are some of the world's lowest carbon intensity operations helping supply energy that's affordable reliable and ever cleaner that's energy in progress learn more at chevron dot com slash meeting demand welcome back to squawk on the street Rick Santelli here with live breaking news from C M E H Q our April read on industrial production expected up one tenth of a percent near expectations unchanged crusade unchanged and last month we lost some ground from up four tents to only up one tenth if we look at the capacity utilization numbers exactly as expected 78.4 and in the rear view mirror that was also 78.4 but that just got revised to 78.5 so it moves up by a tenth production levels utilization rates now are the best since the end of last year we do see that interest rates across the entire curve outside of 30 year bonds have turned higher prices have dropped mainly due to a very large spike in import prices I brought out at 830 eastern squawk on the street will return after a short break at ever north health services we believe costs shouldn't get in the way of life-changing care and we're doing everything in our power to make it possible behavioral health solutions that also keep your projections at their best it's possible pharmacy benefits that benefit your bottom line it's possible complex specialty care that cares about your ROI it's possible because we're already doing it all while saving businesses billions that's wonder made possible learn more at ever north dot com slash wonder let's get Kramer's mad - as we count down to the opening bell one of us enjoyable people in all of businesses Kevin Plank so every time he puts out a number at I know I'm always hopeful that this is the number that breaks out of a very spiral negative spiral no I've his projection here is now for 50 to 70 million in income people looking for 352 so this is a giant miss I have a hard to find bright spots and what international revenue a little bit stronger market down 10% but I would tell you that this is this changing the card call and Nike not doing that well underarm or not doing that well hoke up doing incredibly well for deckers really really well on doing amazingly well so it's almost as if there's that by the new balances private but they're doing very well that this brand still needs one more makeover I don't know what to suggest but I know that underarmors incredibly popular brand but they're just not making a lot of money they did announce the new restructuring and other 500 million out by back yes and I thought that was positive but obviously people think that the buyback is a prop up and I think what's a shame is is that when you go overseas the brand is resonates and a lot of people you still see people that teams wear high school kids wear but they have not found a way to make a good deal of money and I know that Kevin has tried a couple of things now and nothing's worked but that doesn't mean you can count them out it's just that I do need to see a couple of quarters before I believe that any sort of transformations occurring in the meantime deckers has been the great stuff one of the great stars of this year right I guess one thing you could say is they did clean out some inventory that was very positive absolutely you're right there is you can say that you can even say frankly that with Europe being as strong as it is international revenue is very big I mean five or six one million so maybe it's almost it we saw this with vans and in VF Corp when they go out of style they go out of style big time and I still have hope by the way this done man's done an incredible job for Baltimore and everybody knows that he has been committed to making that city great but right now I just can't find a reason to buy it it's killing me I wanted to come with the thesis saying listen don't count this one out instead I just see our wait and see all right I will watch that story it's been interesting to see opening bells coming up in just about eight minutes and don't forget you can catch us anytime anywhere just listen to and follow the squawk on the street opening bell podcast shares of Chub are surging the biggest gain around the S&P pre-market after Warren Buffett and Berkshire finally revealed the company is their secret stock pick in this new 13 F buying around 26 million shares a stake worth nearly seven billion dollars although Jim your comments about competition a moment ago right well I just know that the guy you know these guys are including I mean you've got Evan Greenberg's one of the finest CEOs in the land it's a hundred billion dollar company but what I'm saying is that we know that that insurance is costing a lot of people a lot of mine Chub is my insurer they do a remarkable job and not since anecdotally but think to a lot I do check to around a lot before we talk them and I will say that the amazing thing about this company sells it ten times earnings the finest insurer or I mean the finest insurer in the country and eleven times earnings ten ten you know eleven this year ten next year here's what I find most interesting people talk about how expensive the market is let's just use 11s being their PE so you have Evan Greenberg maybe the best CEO in the insurance business you've got a book of business that's on a sale ball and that really has taken on very little risk why is this stock in ten why isn't it why is it in fifteen times earnings I mean I think Warren Buffett sees the disparity realizes that you've got a company that is just so inexpensive how can you not own it what can I say how can you not own Chub it's that's just a great great buyer that was one of the interesting tidbits coming out last night we knew about the Apple trim we got others like a third point buying some Mag 7 and others yeah I mean look at me've got Dave Tepper selling some mag and I want to mention that a lot of these times I always feel like I've say this that by the time you see these things they may have changed I know that there are very few people like Warren Buffett take the position and it's just like they get loud and through the filings and don't leave and then there are other people who get loud on TV and leave so I always take these with a grain of salt but I thought that the Chub buy was was really well really well played by Buffett because that's a very hard start to buy it's very illiquid why is that always because it's very illiquid and it shouldn't be but it's only up 12% for the year so I think look at people came in I don't like to buy up 15 but if people want to go and say you know what I want to buy what Warren Buffett buys Occidental did work even though it seemed like it was the bounce he wasn't that good and I think Chub were and I want to salute Greenberg as being probably the most traditions in insurance writer of our ear Mr. Fishman the late mate Mr. Fishman travelers I thought was was was also excellent but I think that there this is a a bargain and Warren got a bargain your point about insurance feeding inflation is interesting because your Danny today points out that PCE the deflator does net out claims so it's not going to be as intense on the PCE friend as it is safe for CP. Oh that's very interesting very good I you try to get and you look at this it is welcome all health care comes up right but I come back to if you went every day low price what you're going to see at the pump and we saw a Valero downgrade today refinery more just coming down I mean he's going to come down if you shop at Walmart or Costco you're paying less for food than you did a year ago and I think that well now what we need is housing and we need housing insurance and now some and some medical medical sticky that's why this starts number today was so it's a place because the supply is just not coming no and I know told I mentioned yesterday's going to report and I think they're gonna have a blowout quarter and these companies they want to you know there was a period when you recommend a home builder and people just say like what does that mean but you recommend a toll and the whole group moves up and and a lot of it is because the gross margins are so great because they only build they only build what they think they can sell you would think that given everything we know why don't build it why not double the number of homes built well why that's hard to get the labor to they they don't like to take risk anymore and three they like to buy back their stock more than they like to put a post that's a new thing going on for a couple of years and they've done it very well interesting how energy companies and housing companies have picked that lock you know Scott Sheffield who my adore who was the CEO of pioneers now banned from being on the board of Exxon he was the one who said listen we need this one let's just fire a stop doing unfortunately that's come off yeah two industries that's a really good idea two industries that use that very little distant oil and gas and homes their discipline has turned into great profits take a look at the opening bell here in the CBC real-time exchange or the big board it is federal agricultural and mortgage corp known as farmer Mac celebrating 25 years at the Nasdaq venture capital and private equity firm Insight partners by the way what's that it's fantastic yeah now it photo storage myself some works it we haven't gotten the deer speaking of Ag no it's not was that 18 to one boy so we've done five they did cut the guide I guess crop prices well although weeks come all the way back I I think that that's one of the reasons why people are less likely to want to bolt here because some of the some of the commodities have come back I you know deer made that forecast 700 geez deer makes you just got to learn how to forecast better they really do that terrible forecasters holy cow can't they get a better read on things that they were saying it was going to be seven seven points five to seven point seven five billion not that well a couple months ago now it's going to be seven billion it's not is it that hard to forecast this heavy equipment I guess so yeah I go told us that was that could happen and they just didn't see a comment it's really strange yeah interesting by the way one of the usually deer reports on a Friday so it's nice to get it midweek yes as for the indices here Jim we're going to add a couple points to 53 11 you know the Russell which of people of course people have been eyeing for a while within 70 basis points of trying to get its own all at all time well I mean when you go through the Russell the bargains there are extraordinary one of the things that is is really difficult for a lot of the bears to come to terms with is there are so many stocks that can still go up and not get to expensive levels and you have a few stocks that are enterprise software companies insight insight the bell ringer they have a lot of enterprise software companies enterprise software meaning service now type of meaning a sales force which have been home runs but for the most part a lot of companies just aren't expensive in in that in small cap when you look at him you say well that's does anyone know that that company's around I mean don't you want more clarity on rates or would you rather be too early than too late I'd rather be too early knows because as long as I buy them at that level of low price turning spell I can continue to buy it's the higher ones that I do I'm concerned about like the ones that even in March and April got hit when there was a rate when we had ten year go up in yield March and April was what was incredibly difficult you'll talk these companies will say well you remember how bad March was like well what are you talking about well you know our stock went down I mean if you take a look one of the things that and this wasn't necessarily during that period but service now I mean remember that stock we had Bill McDermott on the stock went down like 40 points nothing it happened it wasn't bad a lot of companies were like that I didn't think the data dog was nearly as bad as what people said in data dog went from 138 down to 119 and a heartbeat right so you had those but those are the 70 times earnings and those are the ones that I don't care for if if we have rate issues they really don't work speaking of names with PE's like that Wells with an interesting note on Tesla today Jim they reiterate an underweight it's called the dragon has awakened and they say Tesla's no longer the biggest disruption thread well to autos it's the Chinese well I I don't know if everyone saw the Unisune piece did amazing I thought the Unisune's piece it should be run continuous this morning yeah because it took her four hours to get the robo taxi I mean this was one of the most superbly produced pieces to that we've ever done in sense of like okay you think it's now you think it's ready if you just you're not take four hours to get that cap that is not what I call an optimal time to get the cap yes and this would to be clear this was one of Tesla's rivals in China yes where you do get into a car you click your phone right supposedly takes you where you want to go yeah and I there were some left turns that were so I was like oh my god that's like I have my eyes from some of the left turns but what's in she said goes 30 miles an hour no children no I thought this was there's no heart risk what I mean that's what happens when you're on like magic mountain like you know we have to check your car you have to check your blood pressure for you I'm not gonna have to check my blood pressure every time I have to go enjoy a cat that is not what I think is it's ill-advised if you have high blood pressure obviously speaking of China Jim Putin's in China with meeting President Xi they had a joint statement today more cooperation on energy and finance and trade and then you have Microsoft this journal piece wow wasn't telling workers in China who deal with AI to consider relocating and it's China been China and Microsoft remember meta not there alphabet not there Microsoft it always seemed like a quiet good relationship not only you know not as boisterous as Apple because Apple's consumer but I didn't like that story at all that just shows you that you got to keep an eye on it where obviously Microsoft's such a smart company and so for them to be worried about it then I guess everyone should be worried I mean a Putin meeting with you Putin meeting with Xi it's just like why I mean like guys but the news flow everywhere like Sarah's excellent interview with net job I mean it's excellent and I'm sitting here I'm listening I'm saying wow let's all one thing we can all agree on is this is an unstable situation Ukraine unstable and yet market remarkably stable just just choosing to say look these are not why you should buy or sell down at this place and I think a lot of people at home are saying I just watch Netanyahu I don't know if I want to be as involved in stocks and then the market goes to these highs you say well maybe I was wrong trying to complete the tip right right yeah energy's a good example Jim although it's up a bit today we've been talking about the rolling 30-day decline one of the worst of the year as that as that war premium has been drained out I just am shocked I mean I don't know again I hate to apply on anything in the Middle East because I why listen to me I read the papers like everybody else but it would seem that there should be more of a war premium than there is um as for some retail names Jim we mentioned under armor goose was a beat but they do guide below but China was good for them yeah I thought it's interesting that it was good for for Canada goose but bear for Burberry I mean think you know I think that one of the things that's happened with China this time is certain some go there's in and out of style I mean we small they like the watches and estate water I hope my travel starts from buying estate water here but we've been dead wrong okay dead wrong thinking that there'd be a turn in China but I just it's hard to guess where the Chinese go to buy and where they're not some of the biggest gainers walmart leads the S&P well we don't always we don't talk about it generals close behind targets close behind look you know target maybe really cheap versus Walmart now a dollar general is a quandary for me because dollar generals had as had problems finding help dollar general is their actual unit size Walmart would tell you is not the bargain that you think it is versus Walmart Walmart is is just a plethora of bargains and so also the old days you walked in it was you know little Debbie you know cinnamon rolls and tasty cake cakes and pies I don't know whatever I mean it's all the stuff that was like you just give me a Lipitor alright it was like Lipitor on the right now and now you walk in it's like okay organic and super organic yeah you know super organic well staples are the number one sector this morning on the S&P see this is what I mean about the rotation that we talked about of over blood now staples staples were terrible you all last week they were terrible about it you know separate Colgate and Proctor now we know the General Mills doing very very well but I just keep finding okay so today staples yesterday was industrials I mean we've got this amazing rotation that is it's not really whippy though things are not getting crushed we're going to talk to Dow chemical second this quietly this stock has quietly going up with a PE that is not expensive for next year and how did they'll get there well it's got a great you and it's doing a lot of things to change this business model so I just find again you can find plenty of stocks that are inexpensive but you got to look for you can't just say oh I want to go buy I got it right now I got it I got to go buy Amazon no you don't have to buy Amazon as much as I respect what they're up to right speaking it really quick on on Amazon and the ongoing battle within media we had iGERS comments yesterday at Moffat about just how much they were spending on on a low return a near-term opportunity and then the Netflix up front wow hey you know what the Netflix I think that Netflix the way you do this just go buy trade desk once again Jeff Green has confounded people they're going to be the broker for the ads one of the brokers that stock there's a high multiple stock that I like very very much Jeff Green is just a miracle workers going up against Google unstoppable unstoppable for guys as they said they weren't interested in yeah a couple of years yeah I mean like just partners should take a look at exactly how powerful trade desk is and realize that there are people who fight against a monopolies and they're not just the government well we've got speaking the speaking the devil got that we have down here turn to one down name that we're watching it shares are up roughly 15% in the past year it's been a quiet move copy say it's a strong demand in a number of sectors and signs of recovery this is most important in China I am thrilled to have us join right now post on one the big analyst day is a doubt chair and CEO Jim Fairly Jim always good to see you great to see you Jim Carl good to see you as well you know Jim I noticed you have such a mosaic of things that are going right whether it be organic products that you've come up with just new ideas all countries where you're selling more in but you know I've got to come back to something that people don't understand you are still linked to oil and when oil goes up Jim it doesn't seem the matter that you've come with Carl carbon free people say oil up let's go by down what helps energy is a big part of our mix and what we do and so when energy moves up obviously that creates the clearing price for our products but natural gas is what gives us our advantage and 65 percent of our investments are in really advantage territories like the Americas and we're making big investments in Canada and then hope to come back here in the US and do the same so we're we're continuing to make investments here to take advantage of this energy advantage that America has well the energy advantage should make it so that Asia is doing well and it looks like Asia is still pretty well it is I would say has the same slow spots as America does with housing and construction right now but I would say the consumer economy is holding up relatively well electric vehicles obviously very strong solar has been very strong and obviously a lot of that material is ended up coming here and we see that we we have large customers in all those markets I think what we're starting to see in the global economy is with all of the infrastructure that needs to be built whether its investment in the existing electric grids and the infrastructure to support our own energy needs or the new energy demands is coming from AI and data centers this infrastructure spend is happening and I think last five years we've been focused primarily on getting our house in order to get in a balance sheet right and today we're going to tell investors look we've ticked the box on everything we said we do for the last five years and focus forward till 2030 on the investments that we're going to make to generate another three and a half billion of underlying earnings for investors which will allow us to not only return share to them through dividends right you know pay them through dividends and share buybacks but top and bottom line growth last five years we had to put a lot of money towards credit profile and debt reduction and get the balance sheet right it's the strongest it's ever been at this point in the cycle and the cycle starting to turn and our investments are timed well to capture the upside of the cycle if you go from where we are to mid cycle or the peak earnings next peak you're talking about 10 to 16 percent compound average growth rates from here and it feels like it's starting to turn you mentioned the some of these projections on power demand over the next five to ten years do you do you consider it a potential crisis or is there so much attention and investment being planned now that you think we'll we'll skate to where that puck's going I don't think it's a cry it's an it's a need for sure it's an opportunity a big opportunity for us it requires safe reliable and dispatchable power it's not going to be done by wind and solar wind and solar are going to have a place in the economy but we're we're a huge energy user we generate 10 gigawatts of power so we're on the scale of a utility and some of the individual tech companies are talking about 30 gigawatt needs to give you an example you know we're challenged to decarbonize and grow the company and now we got to also figure out how to service this so they're going to find ways to energy efficiency for data center cooling but we're talking we're working on a project with ex-energion small modular reactors and some tech companies want to talk to us about why we think that's going to be the winning technology and does that play a role in how they're going to supply data centers with power you're going to see combined cycle natural gas with amine scrubbing and we do a lot of the work with the amine scrubbing that that's going to be a reliable source of power and then where you've got the ability to have carbon capture like in the Gulf Coast you're going to see blue hydrogen and carbon capture those are your three most cost-effective and reliable dispatchable power and that's going to be what fills that need could you explain to me Jim when you say the small format nuclear reactors we just went through what was almost the destruction of southern the great utility those were big big nuclear's I know that G.I. Vernov which is a sensational company is talking the you're saying Jim you got to be a little more bullish about nuclear I still don't hear anything happening before 23rd well it takes time right we're in the process of working with ex-energion to put a construction plan with the NRC for our plant down in Sea Drift Texas I think by the end of this year beginning of next year we'll have the construction plan in you got to get that permitted and then built so we're hopeful to get it up and running by 2030 but this is the for a big project this is the kind of timeframe it takes for our path to zero project in Canada we're in construction right now phase one will be running in 27 phase two will be running in 2030 so that's the kind of lead time that it takes the the beauty of the small modular reactors is the sensitive construction on the nuclear core happens in a facility which is well monitored and the quality control and documentation can be well monitored the other thing is it's an inherently safe technology and it takes a much smaller footprint than a big one gigawatt reactor so I can put 480 megawatt reactors on a 20 acre site right beside the Sea Drift facility and all the power and steam that I need will be zero carbon emissions it would take 3,500 acres of solar panels to come up with that amount of electricity that this is not going to happen nuclear is going to be the way to go and this technology is different from the light water reactor technology in that it's inherently safer it's the same kind of it's a different fuel source it's a different kind of cooling technology it doesn't the reaction doesn't run away on itself if you lost utilities it's inherently safe it is going to take off and I think we're gonna we're working hard with ex-energy to get the total installed cost of small modular reactors down the operating costs will be very low if we can compete with combined cycle gas and scrubbing or blue hydrogen and carbon capture hands down small modular reactors we're gonna win boy that would be amazing it would change everything because it's steady doesn't need wind doesn't need sunlight it works well Jim Ferling congratulations and all the things you've done putting pay down the that I remember when people felt that the dividend was in jeopardy and those people were dead long because of your discipline I hope we're gonna be able to increase it for them that'd be terrific thank you Jim thanks as we go to break let's take a look at bonds today a lot of data whether it's claims or starts or IP out in the last two hours so got a ton of fed speak as well on the way including barking with us here on set meantime 10 year just back above 4 3 5 stay with us busy day and chips of course Jim has been all over in video which is still on the way in the coming days got a couple upgrades Wolf takes intel to peer perform adds AMD to the alpha list and of course aim at tonight meantime Dao is taking a step back down 21 and stop trading with Jim's up next it's time for Jim and stop trading I want to just people to a bit people have been older demographic to a company may not know it's called shark ninja SN we've had them one a bank of America comes out today with what a piece I've been waiting for in your shape with a buy younger people know that this is the hair air but they have the best stiler okay ice cream maker that's almost impossible to find second best-seller blender on Amazon a new cooler that is hard to get sold out and initially a dicks the ninja for us fault don't laugh this company is a price cutter go to Costco you will not believe how cheap their brands are I had them on and was just blown away about how they understand the zeitgeist and how they keep prices low they designed them here make them there nearly in China but I salute bank of America for not being a snob and recommending a stop but two thoughts one is it goes to your point about the undiscovered gems you think exist in the market and I also to the degree to which they're undercover by the streets I was just I mean when I had a morn okay first date they pitched themselves to me and I had a laugh then I went to Costco and I said oh my god and then I called my daughter who's just I choose dad who would never buy dice him when you can buy their their hairstylers and the ice cream maker so great I'm only thinking all right let me ask around among the younger bit this is the brand that represents what we used to think of as like you know may tag well you know it's actually Hoover what we used to think about different blenders like wearing and shark ninja has it going wow I love their stuff I've been a convert convert to it that's gonna prod some investors to do some digging they ought to it's a great write-up great write-up by Bank of America Jim Cisco's up but unfortunately it's the s y y yeah and I do like s y y it's funny because Walmart I food is just such a big issue and Cisco tries to keep prices down for restaurants Walmart clearly keeping prices down for the consumer and Cisco unfortunately that's what I thought it was very hard to understand how they were able to make the transition so why not wait to see all Gary Steele does and see how spunk doesn't again congratulations to Ben Reish's at Nellius who wrote of a piece just said well and Ben Ben's terrific because dad's a great analyst too and know him for a long long time and Ben's got the he's really got the zeitgeist like a tech market and and you you as well have it seems to me a population of names that you want to you don't want to give up but they're definitely in the box yeah Cisco you mentioned done were under armor earlier I just want the could why okay I think the world Chuck Robbins even though he said Falcons fan Chuck I expect to see it for the Eagles game but I just come under armor I mean you know what the guy's done for Baltimore and Baltimore ever since the wire I've just said please someone do something he answers the call but a power is really hard and I you know my mom worked at Litz my dad sold cabernes and Kimball's my mom did lady she did ladies under garments and you know they would come home every day and they'd be just like I don't know I mean very hard business and people seem to think it's not not hard and they're wrong Jim how about tonight okay so tonight I'm gonna look at the hottest stock in the market I'm gonna do the chart for it and I think people are gonna be surprised about my verdict I don't want to reel the stock because it is on the move that's a reason to tune it's on the move so you have to watch it we'll see you tonight thanks for your Easter time you've been listening to the opening hour of 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 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