Carl Quintanilla and Jim Cramer started the show by breaking down another positive week for stocks. The Dow was on pace for its 5th straight week of gains, a day after it hit that 40k milestone for the first time ever. CNBC’s Beijing Bureau Chief, Eunice Yoon also joined the program, to discuss China pledging $42 billion in a slew of measures to support the country’s struggling property sector. After the opening bells, the desk hit Reddit shares rallying, after striking a deal with OpenAI allowing the use of its data for training AI models. Also in the mix: Take-Two slashed its bookings forecast, and announced that its new Grand Theft auto game would be released in Fall 2025.
Squawk on the Street Disclaimer
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 outs distributing distribution. Market moving insight and analysis join Jim Kramer David Faber in me Carl Cantonea on the opening bell hour of CNBC squawk on the street. Good Friday morning welcome to squawk on the street. I'm Carl Cantonea with Jim Kramer at post night of the New York Stock Exchange David Faber's on assignment one day after Dow 40k bulls look to close out a solid week with futures pretty steady S&P aims at a fourth positive week in a row that's the longest streak since February. A roadmap begins with China's housing Hail Mary attempting to end its property crisis with an historic rescue package. Reddit shares the surging striking a content and advertising deal with open AI and as Dom just said GameStop shares tumble as Q1 sales preliminary at least fall take two cuts its bookings forecast and what it calls challenging times. Let's begin though with the markets a day after the Dow did hit 40k for the first time ever on pace for its fifth straight week of gains on the Dow. Jim what did you make of all of the fuss yesterday? Look I actually thought that this was one of the broader attempts at a major milestone and what led it was just incredible. I mean you're dealing with a level of broad that I what I thought was let me just say the most important thing was rates had only something to do with only the first with one stop out of 10 you could pin on rates and I think that's very important. I do believe that most of these companies are just are run by CEOs that don't get enough credit it's amazing to me that we simply are always willing to consign I think that's because of this nonsense risk going risk off which was a tip that's just something that came up to just confuse the viewers I'm not crazy about it. I think that what's happened here is that when you get a guy like Solomon and he realizes you know Goldman is not being run right he makes a change. Satya Nadella when he decides to go all in Azure. We'll be up we'll be decided you know what we can't make cat boomer bust anymore we got to make it so it's a secular grower let's be linked to data centers let's believe to oil and gas. These guys most important Steve Squarey up a hundred percent. He says you know what we are not going to just cater to the older demographic we're gonna go after Gen Z we go after millennials and they are lifetime value customers. These are CEOs who matter even though we are all stuck in a world of macro micro and what the feds going to do it didn't make you money. It was great to talk about I think it fills up the hour you know you got to fill up an hour Jesus like 47 minutes. Yeah I mean when you have almost 60 me got to fill it up but I like to say let's make some money for people and if we do that then you know what Mr. you know whatever bark I'm nice fellas by a lead weld bar. We're glad to have one. Steve Love was that. Steve's a good title. Oh Steve right right but I just think that in the end we got to help people make money and the answer is Steve Squarey comes in and works best blows up the model comes out and Rob Davis okay and he just do Key Truda without two acquisitions to be able to make it so when the patent comes off Al Lobberstom Mars we wouldn't have Merck be one of the top stocks. Jim's referring to the names that added the most to the Dow since 30k Goldman's first Microsoft second UNH third. I really have laggards Jim were 3M Nike and Disney. Yeah I got UNH. No I gotta tell you 3M Michael I mean came in he he was giving a real bad hand and wow he's come back with a with a vengeance and he he's created a company that's ready to accelerate and that's all on him because he got a bad bad hand it looked like a good hand. I mean it looked like you know he was playing people look like the 2s and 7s were wild with that hand it turns out they weren't wild so he had a real bad hand but he's really augmented and you know I can't I take a look at some of these guys like let's take a guy like Mike were okay now Mike wasn't oil guy but Mike decided capital discipline and let's give back a dividend and let's not blow the company up on buying an adorable and then hope to have Warren Buffett come in and save me. These guys are meaningful and you can say that Jamie Diamond was the principal beneficiary of Fed Raycots and then but also principal beneficiary of Ray Hikes. No Jamie Diamonds could bankrupt so I look I'm not talking about the great man theory but I am saying that there people who do more. I mean look at the hand that that the Bob Iger got that's a bad hand but it was an Iger hand. Oh yeah there was a stop there was a guy in there. Yes I mean made a pit stop. He made a pit stop in there now. You know Mike Nana Mary said if you don't have anything to say about you know it's nice just don't say yes. Nana Mary's never wrong. You're talking about exactly all that much. You're talking about corporate dynamism is what you're talking about. Yes. So is that enough to fuel a further rally and did Walmart yesterday answer some concerns about the lower income? Doug hit it out of the park. It's best earnings reaction in almost six years. Well Doug Milk Millen first of all he had deflation in many many aisles okay. Second he had some particular food stuff deflation that mattered. He understands the zeitgeist consumer better than any major mass merchandiser other than the entire top echelon of Costco and I thought Doug did great. I mean by the way Doug is not only like he's so non-promotional I had to try to tell him that his fashion is great. I had to I said listen tell your fashion is great. The stores look fabulous. That's him giving the managers a lot of say but I was blown away by how page after page of a recognition that the consumer scrapped and we're going to do something about it and it was really a poignant, poignant piece of Americana in that quarter. It's interesting because B of A last night looking for signs of the low end cracking the consumer not yet they argue. If you look at wages versus pricing at the low end it's still outpaces higher income consumers and has for years and that's X grocery and gas. Yes and I think that was really important because you don't. Look the preconceptions that everyone's won a credit card. No no people aren't doing as well. I mean maybe they've spent the so-called capital they built up during COVID but I think that it's not it's not the stuff that's found at Walmart that's a prop. Its service means that and you know that's between the lines in the Hope Depot Club which is also very a very important call for the zeitgeist. Between the lines there was the labors too important. It's not the actual goods and Home Depot can't do much about the labor immigration can but we don't know about the work permits that Biden's given. When you look through Walmart you know that if you go there it's going to be the same prices as they were in 2020 not 2019. Almost nobody can bring it back to 2019. Sure. Unless you buy their private label where they have a huge number of foods that are under five dollars. I wish Wall Street would go the exam analysts would go to Walmart but you can't go to one. You got to go to many many Walmart's all over the country because they look very different and that was one of Doug's things which is to make it so that they look different. That's not what they're doing yet a cracker barrel they will. You can get into what cracker barrel is doing because it's another one that captures like Dyson Merga. But I thought the Walmart was extraordinary and that stock was deservedly up and it's not done going higher because that was a remarkable quarter. They're not there on the Costco model. Sam's maybe in the Costco model means let's just do a volume and make money with the card. But I felt so good that America's reacting to what Doug's doing which is to make it so that he is bringing back the rollbacks that Sam Walton used to do. He told me that look we're bringing back Sam Walton. Sam Walton used used to go. There was one of the off of 78 where you would go and you have like ice chest from Rubbermaid and you knew that it cost them 40 and they were selling it to you 20. And if you just if you used to just go out with that and you said I beat the heck out of Walmart and kind of like that. Well you made your crazy Eddie reference yesterday. True. Are we are we in a crazy Eddie environment? I think prices are insane. Some of them aren't seen. They're hard. They're fashion. Now Doug doesn't need someone's doing the fashion for Doug because Doug doesn't seem to realize that my daughter wore the combat boots here earlier. I'm not sure he knew that that was them. I think I have to point out that was their black combat boots. But the prices are created. I mean you know they had some Valentine's Day outfits for like nine bucks. They look like they were like 72 dollars. And I know you tweeted out I think it was a people magazine piece on clothes at Amazon that are 20 bucks. You know look the idea that that apparel is up the biggest up that just that's why me David I'm telling you that the Labor Department is what how could they be wrong David Jim they're the Labor Department you say be wrong because they don't know Temu and they don't know what Amazon. That was a good exchange in absentia. Meantime we're watching China today rolling out some new measures in hopes to stabilize its property crisis. Our Eunice Eun is life in Beijing with more. Hey Eunice. Hey Karl. Well the support package is Beijing's most aggressive yet. The focus of it is to convert to unsold homes into affordable housing and also to encourage more people to buy new apartments. Now the proc package involves a 42 billion dollar re-lending fund to help state owned firms to buy inventory for that public housing. Local governments would be leaned on very heavily. They would buy some unsold homes at quote reasonable prices. They're also being urged to get more heavily involved with finishing stalled projects or at least creating the conditions so those projects would be completed and buying back land from developers in order to try to ease their financial burden. Now as for the potential buyers the national mortgage rate floor will be removed from tomorrow and down payments ratios will also be cut. A state media has been describing these steps as historic and the stock investors really did like these policy announcements. Capital Economics which is a resource house said that this could be potentially significant. It sees that new home sales could be up 10% in the first year but if the funding is sufficient and that is a big if guys based on the size of the problem and also the current state of the finances and a lot of these local governments. Ok Eunice and Jim a 42 billion that's great. People who are in the know. People who know far more than I do have said it could be a six trillion dollar problem that they have. Trillion with the T. This does not seem to be addressing what people would in the know are saying. Yeah but but we see that Beijing has been kind of reluctant to do a whole lot. It's taken a lot for Beijing to get to a point where they're allowing state firms as well as local governments to have some type of intervention. The big problem is that the signal is that they don't want to pay for something too big because they've already have issues with debt and also the potential destabilizing impact you know any kind of major moves can make and as you well know the authorities here are very wary of anything that could create social instability. Meantime Eunice the data we got last night industrial production with the beat but retail sales with a miss a bit of a mixed picture there right. Yeah it wasn't this picture but you know it really reflects what we've been seeing all along that the government is kind of pushing the whole export and a factory component of the of the economy but the consumption really wasn't really wasn't really there so so what we were seeing was a miss on the consumption as well as the investment the infrastructure spending not doing so well but then the you know the exports were doing or that the industrial production was up so again you know a lot of imbalances in this economy. Eunice when President Hoover was confronted with a similar situation he created a reconstruction finance corporation he spent some money but was reluctant to do Keynesian economics and it sunk us into the into the Great Depression. What is the resistance to Keynesian economics? I mean here's a man he's like president for life he's hanging out with Putin eat you could argue if Reagan around it so you know an axis of evil or something like and I don't care he can do it every once so why is he why is he Hoover instead of Roosevelt? I mean I I think it again goes back to this whole concern about a social stability he doesn't necessarily want to do something that's so massive they don't really want to pay for at least pay for at least that's the signaling that's there and you know they if there's big question mark because this problem is so big exactly what would happen if they made any dramatic moves and again even with this scheme there there aren't a whole lot of details but people are wondering so who's going to be made whole you might have the financing but is it going to be the developers or will it be the potential buyers who put down large deposits and could lose everything and are already protesting in some areas or have protested or will it be some of these workers that we've seen who are protesting because they're angry that they haven't gotten their money back or the suppliers so there's a lot of questions about what the government is able to actually do Wow units between that and your robo taxi reporting this week your plate has been so full appreciated as always stay as the guards here when we leave say stay safe unisune joining us stuff in Beijing when we come back a couple of gaming names to watch in today's trade we'll get to take to in GameStop and the overall meme environment as GameStop's close to levels now back to before roaring kitty return to social media we'll get to the cannabis there's news on Boeing hood a mat when we come back 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 calm 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 calm slash meeting demand these have been challenging times and in addition to delivering hits we've asked everyone to dig deep and and make sure the business is highly efficient right-sized and that's challenging and one of the most extraordinary things about an organization is the amazing morale and focus on the common good. Let's take to Strauss Zellnick on the call last night following the company's latest earnings print we're gonna talk to him later this morning on money movers 11 a.m. Jim is GTA six pushes to next fall yeah look and I know that people push back say a billion and a half I can't believe how much the old the current GTA makes which just tells me that don't eat you can't estimate how much the new one will the house house or likes to make a perfect game I thought that Strauss did was right to knock him on this I mean it's very hard to go out but look it's a really really hard game it's gonna be the greatest game ever Strauss couldn't deliver that you want to buy it's maybe too soon maybe need another quarter but there's no doubt about it that this company's doing it incredibly because they were starting to see some results from Zinga match factory this thing is a very very popular game I am all in Strauss I think he's doing a lot rather wait and have it done right is that your point yeah I just think it has to be it that look rock star that people who actually make it their perfectionist but the reason why that game holds up under all the different years and iterations is because they are just so clever and I think that that Strauss looks trousers from the movie making business he understands you can't rush great productions and I think that in the end when I look at take two and what he's done it's still you know they put the analysts are putting up one point six billion dollars back I said wait a second it's just it's the push out that I expected from the point of view of Strauss gave you enough leeway that I didn't think it was that big a disappointment I'm all in Strauss he's done a lot of good stuff as for GME we got the mix shell file wow we got the preliminary number below consensus gonna open below 22 Jim yeah look I mean you know they're gonna offer stock they do it at the money so they're not gonna club the stock I wish she'd done it the day before but I think they had to put out the horrible yeah results before they do this and when I think you know there's there's a lot of things wrong with GameStop that we never talk about we talk about the kitty litter whatever it is a fresh step that this guy's making with $30 this morning he's clearly you know advised Jeff I didn't call him a Joker I don't do that stuff anymore but there is a real problem it's an existential problem for instance you know the the NCA the new games coming out it was delayed you know because of the NILs and I follow stuff pretty closely because everybody in the office of work now if you you pre-order it if you download it it comes immediately all right if you go to GameStop it's one to three days so and it's same price so what is the advantage of GameStop well you might want the disc because you might want to go to a friend's place have a sleepover he doesn't have it sure so maybe it's okay to have a three-day wait otherwise why not just download it for the same price and that's the existential crisis that's why what's great about GameStop is they can close it they could close it could close it and then we wouldn't have to mess with it anymore because it's irrelevant Carl it is irrelevant and I looked at I'm that's it against Best Buy and every single price Assassin's Creed there's 72 different Assassin's Creed they're all the same price but if I go to Best Buy I can also get the refresh PC with the AI assistant so is this all about extending and pretending that whatever hey they're able to make that's good I'm not saying well I'm not saying well I look I mean Brian Conch maybe he's using the bed bath and beyond model I miss my bed bath on model to pick a ball court wait a second that's a better use sport I just think the GameStop I mean I remember when I went to Livingston wall which was that in itself an experience and there was a GameStop on the first level a GameStop on the second level and I was thinking are you kidding me so I think that it's fighting for relevance I think it became the stock it made sense to short it other than the fact that they overly shorted but it's an existential crisis it's been when since I had Paul Reigns on where he's trying to make it do it when the late Paul Reigns was fabulous make it into a swag store Carl look at the prices they're no different from Best Buy look at the time that it takes there's no better to have it if you have Xbox and just download it and everyone who's playing with it I urge them to go to one I urge them to use it and I think they would say you know what we ought to switch and we should do it with footlocker let's go one footlocker you know I mean they need to go to another one let's pick another retailer that is struggling for relevance but at least has a CEO that understands the business I mean really I can go to the mall and I can find 20 other stores that are better most of which are covered today by Matt Bosses piece and I mean at least Carl's bought support they got the right to have support they buy it and that change of GameStop has to take in they have to do something so different so I don't know like maybe with Petco you're not joking you something outside the box oh no there's nothing there yeah there's nothing you know let's have Strauss only going you ask him about why GameStop exists and I think it's gonna be a head scratch yeah we'll talk to him at 11 is yeah they could offer I don't know I'm like Bucky's has great sandwiches in Texas merge it with GameStop when we come back Kramer's mad - in the opening bell one more look here at the pre-market as the Dow looks to put together another positive week along with the SMP stay with us 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 time for Kramer's mad dash as we count down on the bill there are probably times when people have talked about CEOs who you said that made that comment about these people can just really changing Julian Messino is taking over cracker barrel and I think a lot of us know the crack brows look down and she has put out a 5.5 pillars to redevelop that she is out of Taco Bell which is the Brian Nichols school which of course now Chipotle she's gonna fix it they had a size she did it in big 80% yes but they needed to reapply that money to be able to make the stores look better not this quarter because she's already told you this quarter next quarter will be hurt but she's gonna reinvent this and they just put a succeed she is a hitter so you think it's worth it oh yes yes she has to do so much reconfiguring I believe I believe I think she's with a big board it's the WN VA Commissioner at the angle birth celebrating the lead 28th season by the way happy birthday to the NYSE 1792 way international a Chinese hotpot restaurant chain celebrating an IPO today President Xi listened to us listen to us we are on your team when it comes to today by the way Dave Teppers by a Valley Bob and the other day Josiah and I had good fortune me his wife was honored in a terrific thing I went to last week that company is very inexpensive and I know that when you speak to Dave he would tell you maybe the cheapest company in the world it does it's returning a lot of capital it is very good now it is up in a straight line so if you come in now that's probably incorrect but there is there are fundamentals behind it it is not just this kind of let's move into that one this is the this is the stock of the day right so when that one comes in it's been the only stuff I've used in China I did do JD.com for a trade for club members but I since I vacated that this week but this is the one that works. I also noticed Morgan Stanley cut by do today yeah add market week there I met that makes sense but but Josiah's engaged I think by the way Josiah's an amazing businessman he does a lot in Brooklyn he's really a remarkable guy and I think that that I think it's very much real Baba it's just that you are in China Chinese stocks have historically disappointed you after they lure you in and I just think you got to wait for it to come down now but it's cheap and it's got a big buyback in this very good. We mentioned yesterday Microsoft potentially moving some of their AI workers to other countries today Jim this report that they may offer cloud clients AMD processors as an alternative to Nvidia ahead of Nvidia next week. Well I mean good luck trying to get the Nvidia now I think Lisa's got a great product and by the way when in terms of speed MI 300 is very very good. I think the stock deserves as head last night to be deserves much higher but let's understand it was always going to be theirs that it was always and they the combination because HP told me that it was always going to be AMD it was not going to be Nvidia so if you're selling it look Nvidia's got is going to port next week. Bank of America was the first one today he said there's everyone's been recommending there's going to be volatility around around the call and I think that's very true it's very difficult to to live up to expectations but I think Nvidia has the black well transition that's going very very well because you don't really have a your current one is bad you can keep your current iteration. But you know hats off to Lisa's but remember there's two components to the GPU you've got the training and then you have the inference. Reddit is a more important GPU situation because they have a great deal with chat and open AI open AI is to up 12 to pre-market today. You know Reddit I mean can I just look there are deals that you really want to be in and then their deals where it's like why am I in that and both arm and reddit are remarkable and you know credit to Steve Hoffman I know some of the redditors who are long-term redditors don't like that there's more ads but he doesn't run that thing is a charity that thing is a juggernaut and I just think he's doing so many things right. I'll tell you for how much consternation there was how long it's taking them to go public when they finally did it it seems to have worked out. Oh it was absolutely fabulous. I mean the good privilege to be have him on made money and then to have Bill Reddy on on Pinterest. Whoa I mean talk about a site that you want to have. I want to gin up some advertising just to be on on Pinterest. These these two companies are remarkable they are replacing like Fox and I don't know T TBS or TNT whatever whatever says that over there. We've never really had a chance yesterday to talk about venue sports the name for the bundle. Yes. I think it's like Ken you it needs a band. Remember this Ken view came up what was that? Ken view. Ken view into I look I I believe in venue I just wish it wasn't done so fast so quickly it seemed like an emergency situation. I have the like parent coming this of this network Comcast bundle which stream saver yes stream saver but you know David was here when I don't have to imitate David for what he said because he didn't say anything. There's a look at some of the media names after the up fronts this week of course the Moffatt conference where Iger talked about how the puzzle he had to unravel coming back into the job. People told me that the Netflix blow away but of course Netflix is blow. I mean I'm tired of them being blow away. You know at least because I have to get to what you know we could be Netflix. We could be Netflix. Do they watch Netflix is fantastic. 40 million in the ad tier is not what we would have thought a year ago. I mean Netflix is just they look I mean a lot one of the things that I think the American executive to be a little less xenophobic and recognize that when you have series coming out of Iceland Iceland's a killer man. I literally went to see where Netflix Iceland presentation was made. You did go there. It was a shrine. A shrine to Netflix. South Korea created and then amortize it all around the world. You're a choir. It doesn't matter. They're going to go if they seem to understand that young people they young people don't even want learning to have a saddle. They just have the titles. Never watch what young persons like that. Get away from them. Dad you need the titles. I mean it's like you first I thought they were deaf. No it's like they like titles more than they like the people listening to languages. Jim we mentioned chips. Any reason to be concerned about AMAT last night. I love the call. Gary Dickerson was just amazing and people don't understand. Like look there were people who were initially and they were selling the stock instantly. These are people who should just go buy the cat thing. Listen this starts with a big picture. Tectonic shifts. I love that he used that term because I haven't heard that since my says and class and spots and dots. Tectonic shift in technology including AI, IoT, automation, electric autonomous vehicles and clean energy. They are in every single megatrend. How can you sell this company? You don't know anything if you sell the stock. So I thought that Gary once again delivered. He is he's a hitter. Now look I happen to like Lam Moore. I've always been preferential to Lam. Because I love the I love no valus. But wow. This is great word. Interesting. It's a lot of G-Rams. Little consumer weakness this morning Jim Dollar stores. EL scraping the bottom of the S&P list at the open. EL. If you're selling EL you know my travel trust mistake. I threw that in for David because he would criticize me. But Estee Lauder is I think the equivalent of Reeschmont. So Reeschmont reports a number that isn't that great. They do change the CEO and then the stock's off to the races. Estee Lauder could do that when they report in August because they have a amazing D stock. They aren't finally going to be inventory in China. Reeschmont by the way people have to understand why Reeschmont sells well in China. The Chinese government does not like conspicuous consumption. They don't build mansions there but you can buy the most expensive watch and show who you really are. And that's a Reeschmont. The new person from Reeschmont is running is Van Cleef and Arpells. I had them bump into an executive last week who had just a gorgeous necklace on. Then I wanted very much my wife and I said geez that's beautiful. Where'd you get that? She had Van Cleef and Arpells. I said okay. Sorry. You know it's like Bouldery. Ever got a Bouldery? They have these four and fifty thousand dollar necklaces. Those are that that's sent you back. The industrials Jim, Cat's leading the Dow. Freeports up there today as well. And then this upgraded DuPont over Jeffries. I love the up we're going to DuPont. My chap just had a big position because Ed Breen, not just because he was from the neighboring school district because that's not enough. But I think that the stock is incredibly cheap. And by the way you know two so likes of two. Two so with some great numbers. But then two upon quarter was incredible. Finally the D stock. If you think that they're electronics they have the plastic for electronics. I just think they're in the sweet spot. It is a total turnaround situation. And Ed Breen this can be Ed Breen's big cap on his amazing career. So I like the DuPont called Barry very much. Jeff March today who's my partner on my job. Geez I want to buy more. I said we can't get such a low basis. But wow DuPont great great call to buy it. Great call. Speaking of upgrades. Hood. Double upgrade over the given. Add to why fight. I mean they'll get mostly crypto and options but they were fighting the trend. People like Hood. You know I think a lot of the the concern the typical brokers are reluctant to embrace a company whose model really is still game the gamified kind of things that people buy. But you know their numbers are really good since 23. Well I'm thinking back to your interview with Vlad 10 of two three years ago where you pressed him for something more something that would teach discipline and patience and longer horizons. Did you ever get that? Well they offer that draw so to speak. I get their bulletins but their customers are not there for that. The customers are busy buying game stop this morning at three thirty and at four o'clock at a price of thirty. Is that is it hit thirty yet? You used to call them the pajama traders. Yeah. Oh yeah they're in debt debt and say got feet pajamas those people. Twenty one dollars for the feet pajamas feet pajama trader not just pajama chairs they got the feet. The footy pajamas. Yeah which I liked I mean you know it's my daughter's 30th. I remember she was 29 she was 29 years ago. She was wearing the same pajamas those people are. She had this thing. It's just between her years. Lower head. It's called brain. You know it's cranium there's a lot of stuff that was the album. What is that? Vegas nerve back there. She has the whole shooting match so I think that those buyers ought to be thinking about that. Now they may actually criticize me for saying that. I don't know why it's just descriptive. There's a ton of airlines Jim. We got an upgrade of United. Yeah that's a Boeing annual meeting. The layoffs at S.P.R. but he and you'll meeting. Matt you know by the way it's close to a ten month high. I feel like I said I think UAL so cheap it's incredible. Boeing was up three on the indictment. I guess in the conviction it would be up seven. The layoffs at S.P.R. good discussion on squat this morning about what that will do to supply in the medium term here. You know I I have a partner that's my friends to get counting Matt Horwin and he said why why are there no big recalls of Airbus? Why is Airbus so good? I think they're Boeing used to be like Airbus but then Boeing did this partners program where they just kind of gave away a lot of divisions that weren't that good and then you know they extracted a lot of work from them and I think that that's one of the reasons why they're planned to save money backfired and it's a root and brand situation. You got to rebuild the company and by the way Cal who knew that when he's trying to get spear together but you know the authorities have yet to be able to say look the problem is you got to rebuild it rebuild. You got to get all the fuselage back and you know Boeing is again a pitiful helpless child. Now a lot of good people are saying how can you not buy it here because I mean what's you know it's still duopoly. My problem is is that they haven't been able to fix it yet and I look when they fixed it you'll know it but spirit there if they were buying spirit which is what Kellyn said has to happen. Yeah. Spirit seems like it's full and a port. It is complex through a supplier standpoint. Supply chain technology. Yeah. Highly regulated union. I mean it's a humor facing. I mean there's just they're they had a lot of problems and yes they can rally. If I were them I would do one of the I would do a GameStop like stock offering and just get that balance sheet and what I know that's awful but geez you know GameStop's got that they've got a Assassin's Creed. They've got the Creed. They've got the Netflix in there. The only thing got. No they got what's they got. They got the game. What is that? They have all the things won. Twitch. Twitch. They got the game. Assassin's Creed. Twitch. You need a. You need a. You need a show. I told that that Twitch version which you can get won best by same price but in Amazon you can get the Twitch version. We'll get you a big fat mic and you can do a Twitch for as long as you want. What is it? It's no going to break. I look red red redemption I understand my nephew us head writer and soul writer when I get this when I'm late with my copy he's playing the red dead redemption. Yes. You know. The journal today says Microsoft's gonna put Call of Duty on a subscription service. There you go. Look that was a brilliant thing. It was fought by the FTC and I'm not saying anything bad about the FTC anymore. It's other than that it was fought. Didn't work. Jim Goldman has a note on Tesla reiterate's neutral. We expect slower EV growth for the next few years as volumes meaningfully decelerated in Q1. Well look obviously the new the new narrative is that it's a tech company and therefore it's not stopped. You mean Tesla? Yeah. They do look at net future purchase intention and it is worse for Tesla than a lot of their rivals. Yeah. The numbers don't look good there but that hasn't met much. Obviously we've got the referendum on this pay package but no Tesla right now it's a low but they'll come back in a Kathy Wood or Ron Baron come back and say look it really is the you know it's the next and they can say whatever they want in video. By the way remember he turned on a video musk and then he had to go back hand knees to get the invention in one of the one of the few people who I think did not treat Jensen Wong the way the respect with proper respect interesting. Jim we mentioned the 10 year here at the bottom of your screen I was taken aback by B of A last night saying that a decline to three and a quarter on the 10 year in the next six to 12 months is a good possibility in their works. Yeah that would require like the squeeze and copper would be reversed. I don't know how they get that stuff. I don't and let's let's let's write that down and play the tape back and play the tape back because that's one that with the stock offerings that Josh Frost is you know his schedule he's getting for treasuries went through what Janet Yellen's gonna be selling and with and with the idea that service rep service inflation is still bad and we still have we still have shelters still bad. Yep. I don't know how they get to that. I just don't. God love them. If we got to that then the S&P is going to the world would look different. I'm sure. We would have doubt 50,000 a second. You know I don't know where you get that kind of thing. I mean you know the S&P would be 52.95. I guess we go to like the 62.95. I just don't know. I guess that's six for next year. Next not not this year in but year in 25. That could be I don't mind that. Hey by the way take two some five. People listen maybe they listen to realize that it wasn't anything new. Yes. I mean when please when you ask Strauss just say Strauss wasn't this kind of what you said could happen because like Strauss is like when I spoke to him yesterday I said oh my the pushback the pushback isn't well Jim the people who know kind of he was very he's been he's so nice. He's been communicative. Yeah he's sure. I just think that people were selling it this morning. Are people who just don't pay attention? Jim cannabis DOJ looks like they're gonna move to schedule three. There is a lot of public comment. It could take a while. Well there's only one company that is real in that area. And that's the David Klein run canopy growth with Judy Hong once a great analyst at Goldman. They've got a real business model and they can get it done. It's up 116 percent but can't canopy growth which is remember really owned by by Constellation Brands. And David Klein is was this previous CFO of Constellation Ritz. They have a they have a real business model and they're the winner if you want to play that. Don't play the till right play the canopy growth. I think we're going to talk to Cura Leaf leader today. Till Ray with an at-the-market offering as well today. Yeah yeah I know that's why you got to be in canopy. Can it be some real one? I like canopy. It's taking longer. Not the product. I mean hey you know I'm right. But the the legal shift has taken longer than a lot of you guys know I mean it's just and everybody keeps thinking but when are they going to be able to accept more than cash at the dispensaries because this stuff should be bought on credit. You got to go to Oregon to make it so that it's like Oregon has like well there's a stoner one and the next to that is one with Walt Whitman you know and then the next to that is one that's kind of like a rock star one. Oregon's every other block. Yes. My my daughter lived next to one that was called Leaves of Grass that was the Whitman. That was crazy. Well Whitman. I thought it was a bridge in Philly turns out to be right. A relatively flat market here dows up 18 obviously back below 40k. We'll watch bonds today. We actually get some fed speak on this Friday. Waller 10 15 daily 12 15 along with leading indicators in about 15 minutes. Stay with us. It's time for Jim and Stop Trading. It's not a sleepy Friday when Matt Boss from JPMorgan issues a amazing report on department stores and specialty stores and I think a lot of things catch your eyes. Beth and body works. He's got some you know there's a lot of things that he's got that I'm just going to say are revelatory. I look at Macy's trying some things but it's TJX and I think TJX is just one of his absolute favorites. It's been a huge position for us for established us because of Matt's work. At Top on Trens Martin is all really fantastic. I just think that the stock has been in total holding pattern. It's done nothing for ages and when I read this I just say you know what I'd like to buy more. We have a much really good basis but I just think if you read what Matt is to say it's really fabulous. That's interesting. More a comment about that sector of retail or the consumer overall? Right time right place. Look he's not going to push anything that is really really expensive right here. When I say not expensive I mean for the customer. TJX is the big winner when it comes to the companies that have done badly and need to offload inventory but it's also just very well run and of course again not promotional. This is nice to say about ANA and I got to say some of the inventory numbers this week out of retail were constructive. Yes. Oh we got things are good. I mean now are they going to be Dow 50,000 good. I just say things are good and there are a lot of companies that are trying to reinvent themselves but if you go back over those companies still there's from 30 to 40,000 those are visionaries that got us there. Steve Sperry is a visionary. Nice circularity. That's exactly how you open the hour. Because I just think that sometimes when you look at CEOs they matter so much more than we think they do. We think that everybody's hostage to a fed funds rate and these people just come in and they say you know what the one thing we're not hostage is to do fed funds and I just really appreciate that. I mean terrific. How about tonight? Okay tonight I've got a special I'm doing called everything ALS executives Bill Moody's a old old friend as ALS and we're going to show you how life can be reinvented and don't give up and Bill amazing executive and we're going to speak to him and it's going to be I think it's going to be quite moving for people but also constructive. Jimmy look forward to it. Heck of a week. Yes. Heck of a week. Oh really? I hope he knows. Really? We'll get David back in a little bit. We'll see it tonight. Mad money 6 p.m. Eastern time. When we come back some leading indicators dows up 50. Don't go anywhere. You've been listening to the opening bell on CNBC's Squawk on the street. All opinions expressed by the squawk on the street participants are solely their opinions and do not reflect the opinions of CNBC, NBC, Universal or their parent company or affiliates and may have been previously disseminated by them on television, radio, internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of an opinion. 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/squawk on the street disclaimer. At the UPS store we want to make this summer the summer shipping, summer shiplooza so you can start crossing items off your must-ship list. Like the vintage film camera your college kid needs for class or the Vase shoe told your mom you could send her ages ago and with our pack and ship guarantee your items arrive safe or we reimburse you. So stop by your local store today for everything you need to be unstoppable. Visit the UPS store.com slash guarantee for full details available at participating locations. Most locations are independently owned. Product service is pricing and hours of operation may vary. See center for details. The UPS store be unstoppable. [BLANK_AUDIO]
