What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. It's Jim Kramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action. Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Kington, here with Jim Kramer, David Faber at Post-9 of the New York Stock Exchange. Got some risk off today as yields are higher all around the world. Germany, Japan, US 10-year, 4-5-6. Got some M&A as a story today and some decent guides higher in specialty retail. We'll get to that. roadmap begins with NVIDIA, Apple and Tech's record rally, the chip maker looking to rally again at the open, closing the market cap gap with Apple. Plus in deal news, Conoco Phillips buying marathon oil. It's a more than 17 billion all-stock transaction. It bolsters the Conoco's share of shale assets. We also have retail and focus. Abercrombie posting its strongest first quarter ever sells down 22%. We've also got Dix and Kava both raising guidance. Let's begin with the markets one day after the Nasdaq did close above 17K for the first time. Jim took more than 900 days to get past that 1,000-point threshold. And it wasn't done right. It's done with one giant stock and a couple of other, I'd say, acolytes. And then after that, everything is kind of in the balance and not great. Look, I feel yes, there's really bad day because it continued other than Fridays. But is this period where we're seeing some serious rollovers? And they're getting the, particularly the enterprise software to cyber security. I keep wondering, David, you talked about enterprise software after work day reported a not great quarter, that yesterday you mentioned the possibility of it could be a dogfight with Alphabet HubSpot versus Salesforce and I have Salesforce on tonight. And all I'm saying is that enterprise software is the weak part of the economy, maybe even the economy. It's the economy of the market which reflects badly the economy. I mean, because I don't hear many other people say, listen, we're getting a lot of pushback from our clients. I mean, look, you said that I get it from Dix, from Abercrombie, from Kava, from Chewy. These are all much better than expected. It's not the consumer. And then I look at, I don't know if you guys are focused on Bank of Ozark. But Bank of Ozark doesn't typically come up in my daily research. Well, I think I move today, right? I think that you should change your focus as well. I have you guys. I know Carl is singularly focused on the Bank of Ozark. Well, when we come back to the commercial, here's what I'm going to say. Bank of Ozark symbol OZK. This is a city piece that I thought was unbelievable. It's been instrumental in the development of high dollar commercial real estate projects throughout the U.S., including the largest individual loan here, regarded as a multi-use project in Atlanta, Echo Street West, the people in Atlanta are probably well familiar with that. They also have a life science construction lending in general. They did one, well, they did one couple of things. What's the point? What's the point? Speedway come? What's the point? I didn't have it on my scorecard. We'd get to Bank of Ozark in the first three minutes of the show. So what, why? The city piece, it's a cell, and it raises the concern that this is where the ground zero for office development, or as my partner Ben Stoto said this morning, Bank of Ozark with a big big tower in New York, a big office in Atlanta and Bank of Ozark? I mean, huh? But how does that connect to enterprise software? No, I'm saying that the only other week area that I find. Oh, it was an addition of week areas, it was commercial real estate and enterprise software. Although, yesterday, we had the upgrade of Huntington on sort of similar stories being around cities like Columbus, Ohio that are growing fast. I love that, and when I've had the company on many times, and I've tried to reach with that story too, I've said, listen, you've got the great reshoring, and they said, well, don't forget, we also have an interest margin, you know, conservative backers. All right, I want to get back to enterprise software because we're introducing, you know, they're a much bigger theme, this idea really that you think what that there is starting to be cutbacks by corporate America in terms of, or at least, I don't know, spending worries, price conscious, I don't know what you want to call it. Enlongated cycles, I know much, not enough land and expand. People believing that they've all come out of each other. Look, Workday was really interesting, because I think Workday's a good company, but you know, they do human capital management, HR, some of the problem I've carried, haven't been able to jump over as much of finance. Now, I think that Sock was wildly exaggerated in terms of business decline, but Salesforce has been a nightmare. I mean, every day I couldn't, and then David, David killed Salesforce yesterday. I said nothing. It was business. It was business. Right, I get it, I think I even understand the reference. I'm just saying that when I look at the stocks that are surprisingly weak, I come up with the golden boy era of enterprise software, and that seems to have been. All right, so let's talk Salesforce specifically, because that's obviously a company you know well, Mark Benny, awful during this evening. So draw a picture for me as we head into, by the way, you mentioned HubSpot, I got nothing new to share there. The stock was up yesterday on just our very brief conversation about Google's interest there, and the potential for a deal, and what the transaction might look like. But there is a belief that it could be a threat to Salesforce, it's owned by Alphabet. And I mean, take me to the quarter tonight. What are your expectations? I think it is. Especially given what you're saying about weakness in enterprise software. Yeah, I think the problem is, what is he going to guide? What is he going to guide? I think that it's, all right, let's just go right to something that is very front and center. Last night, I had a really good company on Cloud Fair. Cloud Fair. Matthew Prince, they've got an analyst day. Come on. And he got it down, shaded down, each quarter, why? Because of macro concerns. Macro concerns, David, for cybersecurity, content delivery, and the answer is yes. There's people worried everywhere. Take a look at what's happened to Zscaler, OK? Zs. Look at this stock that auto-desk this morning, trimmed. This is the weakest part of the economy, and I've got to tell you, I'm used to it being the strongest part. Yeah, well, it's been where a lot of the growth has happened. Of course, that's why when you're in private, I mean, obviously during the pandemic and the run after the 21, 22 period of enterprise software. Right, when you're in private equity, you come in and you say, well, they say, well, what area you want to be in. If you don't immediately say enterprise software, they just, they find you some, you know, go, go do the festival franchise. Yeah. I mean, there's one private equity from built on it. Vista, obviously. That's what they do. Well, have a Thomas Bravo. And Thomas Bravo, too. Right. So I'm just worried. Carl, that's the area I'm worried about, enterprise software. And we need Mark, Benny, I have to say, we see no weakness. As a matter of fact, we see that customers need us more than ever. And that data is the new gold. They have to say all that. Otherwise, what happens is that now there's nothing left in the enterprise software category to keep the market up higher. And this, this has been a market leader group since 2014. And it cannot be replaced by consumer? I think that there's just a belief that no one believes these consumer numbers. I mean, let's, I'm not saying that Dix, they think that Dix and Abercrombie are outliers. I don't think Chewie's an outlier. There are three price target cuts of Lulu today. Well, Lulu was the golden, golden child. So I'm just, I'm just saying that right now we're in a funk. Now to counter the funk, my travel trust is actually buying. We've been waiting. Buying what? If I mentioned it, then I can't buy it. Oh, I thought you said a name. No, no, we can't buy it if we mentioned that's the rules. Okay. So when you say funk, S&P is still above a lot of year-end targets, double digit gains for the year. We just said it all the time. Last week. Last week. Okay. The all-time high is concentrated on a couple of stuffs. And yesterday was the most narrow rally I have ever seen. It was based on NVIDIA, Dell, AMD, and a player to be named later. That was the whole rally. And I think we have to start recognizing as great as NVIDIA is, it's just one player. It's just one player. It's Otani, man. I mean, you got him on your team and you're going. You got a good point. Aaron Rodgers? Aaron Rodgers? No, no, no. Otani's in a place. Yeah, he's not even pitching right now. Yeah. So he's NVIDIA. Hold it. There's one other guy who can pitch. It turned out to be a high fastball. I don't know if we have it. Jensen Wong. Do we have Jensen Wong's high fastball? We showed it yesterday. Well, here we go. Now take a look at this. Unhitable. That's an unhitable pitch. There's a mustard on that one. Yeah, that's an ethos. Unhitable. Number 93. You know, why it's 93? It's a good quiz. 93. Why? I don't know. Company founded 93. Oh, it's founded 93. All right. That's interesting. Yeah. Okay. Well, how about, how about what? You want to talk about the marathon deal? What do you want to talk about? No, I want you to. I was talking, you would do a little marathon because I think that's, I think it's in your wheelhouse. Well, oil and gas has not always been in my wheelhouse. I have reported on my share of transactions through the last forever. Yes. Well, let's talk a lot about Chevron and Hessian Exxon. I'm going to, I'm too small for you. I am going to continue to talk about Chevron and Exxon. No, we're going to talk about this and I will continue to talk about Chevron and Exxon as well because that's a fascinating situation that obviously dispute over the joint operating agreement in Guyana in terms of Hess. But let's give you the details on this large deal this morning. $17 billion in stock is what we're talking about. It's got a 22, let's call it 22 and a half billion enterprise value overall because when we include $5.4 billion of net debt, there's the terms 0.2550 shares of Conoco. They're talking about it being immediately accretive to earnings cash flow. There's also going to be a return of capital. In fact, they say independent of the transaction, they're going to increase their ordinary based dividend by 34% to 78 cents a share. That'll be starting in the fourth quarter of 2024. They also have a plan to repurchase as much as $7 billion in shares in the first full year once the deal is done up from $5 billion standalone and $20 billion over the next three years. So you have a significant potential buyback and Jim, the premium is roughly 15% of the closing price on May 28. You can see, I mean, what we want to check here obviously given an all-stock transaction as well as how Conoco Phillips is reacting, not badly. No, you saw those accretion numbers and then, you know, we can look at the map here in terms of the Eagleford, the Bakken, the Delaware Basin in Permian, in Mexico, where I've actually spent some time and they're putting it all together. I don't know what you think of that map. Well, I like the map and I've got to tell you what I really like is what Conoco is doing. It's Conoco is down three and a half dollars an hour and a half ago. Now we see the whole plan, Conoco is better by the marathon. Could be. Eagleford by the Bakken, I'm tired of. Conference calls start at 10 o'clock Eastern, so we make it even more details, but we're taking a look at the presentation. Look at that complimentary acreage. We didn't know that, David, you didn't know this was coming. You're so busy killing Paramount, you didn't see this? I didn't see it now. I do hear, if it has not been a great year for M&A, we all know that better than last year, which was one of the worst, but not great. But I am hearing, you know, I continue to at least hear that there's some big things out there, whether they ever come to the fruition, of course, continues to be the key question. And this is a fairly large deal. She's not changed? No, they haven't changed and a gating issue, of course, is antitrust. But when you think about this year, you've got Exxon completing its deal to acquire Pioneer. Right. You still got Chevron hoping to complete its deal to acquire. By the way, Hess shareholders did vote in favor of the transaction yesterday, so the only thing now standing in the way, well, is, I mean, the main thing is that arbitration that they are dealing with with Exxon over the joint operating agreement in Guyana, and then you've got this deal. I mean, oil and gas has been on fire, so it's-- Oil and gas has been amazing, and I've got to tell you, I don't think it's over. I think that the companies all see this opportunity to buy contiguous. There's also just, David, there's a belief, a lot of people feel that this is, I've written the last one to happen. Do you know how many private equity deals are down there? I mean, what? Yeah. What are the last one to happen? It could be like another 10. Yeah. By the way, did you see-- Hotter's barely down. Did you see Scott Sheffield coming out yesterday? This is separate from that FTC action, which kind of slammed him, and a lot of it seemed to be based, according to him, on completely erroneous interpretations by the FTC. He talked to everybody about keeping the price higher. He talked to me about keeping the price higher. Yeah. Look at that. Probably nothing. What's been a cool thing? It's saying, like, let's keep the price higher. I know. What was interesting. You think the guys who sell wheat? This is separate. This is related to Pioneer, which, obviously, already has been acquired by Exxon now, but Mr. Sheffield was supposed to be on the company's board of directors of Exxon-- What a slap in the face. The FTC said, hey, you engaged in collusion. He forcefully comes out yesterday in court papers, basically, and says, nonsense is not just-- He's given him a wave. I feel like Gary Sheffield is one of those guys. He's portrayed as being a kind of a fixer, a fixer. That's ridiculous. It's got a-- It's got a-- Yeah. Sheffield's not a fixer. You're calling Gary Sheffield? Well, I was thinking about-- but he's not a fixer. And I think that was outrageous. But, look, I've worked with him for a long time, and 2012 was in the sat-down explaining to me the world business, and the idea was to have stable pricing. When we come back this morning, get some guidance that's taken a toll of shares in America. And, of course, big busy day in the airline industry yesterday, and got some ratings moves today. We'll get to Robinhood, Merck, M&A, Kava, some price cuts just crossing now at Walgreens when we return. Let's get straight to the point. You want to grow your portfolio to fight rising costs of inflation or pay off your debt, or anything standing in the way of you and financial freedom, right? Yahoo Finance, our sponsor today, can help. For more than 25 years, Yahoo Finance has been helping great investors like you. Whether you're a seasoned investor or just looking for tips, Yahoo Finance makes it super easy by putting all the tools and data you need in one spot. Yahoo Finance takes a holistic look at the financial news cycle, including breaking news, original editorial perspectives, analyst ratings, independent research, customizable charts, and more. You can securely link your brokerage accounts for a unified view of your wealth, including 401K and other investments. That's how Yahoo Finance gives you insights and helps you take a look at your wealth in its entirety. That big picture perspective is what great investors need. For comprehensive financial news and analysis, visit the brand behind every great investor, yahoofinance.com, the number one financial destination, yahoofinance.com. Got some news out this morning regarding Jamie Dimon. Let's get to our Leslie Picker this morning. Hey, Leslie. Hey, Carl. Yeah, Jamie Dimon is speaking at the Alliance Bernstein Strategic Decisions Conference. That conversation is ongoing, but wanted to give you some headlines because he was asked to clarify his comments that he made last week at the firm's investor day where he said his timeline to step down as CEO is not five years anymore. Today, he said, quote, "It is totally up to the board," so you can ask me all you want, but the timetable is less than five years. He said that could be four, that could be three, three and a half, four and a half. It could be two and a half. It's up to the board, but it does sound like it is less than five years. He did say though that there may be a term where he serves as chairman for a while, but that is totally up to the board. He talked about how the board has studied multiple successful and failed successions. He says there's no magic formula, but the quality and character and content of the people is probably the one thing that matters the most, and so he believes that it's important that people do the right thing when the time comes, and he doesn't have to hang on to the CEO and chairman role forever. He mentions the bench that they have. He calls it the 82nd Airborne, or the 101st Airborne, and this idea that they've been building this bench for a while, and he believes that the candidates that are in place will be there and will be evaluated when the time comes. I'll send it back to you guys. I'll say thank you very much, Leslie Picker on J.P. Morgan and Jamie. Yeah, well, I think that Jamie is trying to make it so that was a very rocky day for the global stock today, and now I do notice that I believe in the same conference that Charlie Scharf says that Wells Fargo has brought back $5 billion to stock so far this quarter. It's pretty amazing. It feels good about reserve levels for office real estate. I referenced that earlier too. You did. Thank you. Yes. Thank you. Great quality. It's important. The credit quality remains very, very good. It's two varies, okay, and the consumer's generally strong, so there's a nice solid resume Wells Fargo. That is. It continues to be a name you like, right? Very much so. I'm not wrong in saying that. Right, and it's been, it's just, you mentioned it, because it happens to be one of my good ones. You tend to focus on-- That is not true. I tend to focus on whatever I focus on. But tomorrow I have a meeting. I can't talk about Nvidia every, well, we talk about it more or less every 10 minutes. We can't talk about it every two minutes. No one's mentioned. Remember we used to talk about-- Great call of all time. Very much. And part of it I would say is Jensen's doing, since when he had me come out. I remember when I used to say, and then I saw me talking, and then he had these pictures he had these, and David would say, yeah, yeah, yeah, yeah. Well, I'm just trying to understand what in the world you were actually talking about when you were explaining these things. I was talking about the greatest stock in history. Yes, I'm aware of it. This guy, I saw him play in high school. He was the Bryce Harper in 16, when he was 16, he's, he had like, had 10 home runs in his life. He's like, what game? I'm telling you. As for Jamie Diamond, he could retire in three years and two months, or it could be four years and three months. Could be-- The level of information I get from the show. Three years and nine months. Parallel. How about Lulu? He stops here? He might be chairman, but he might not. All right. Well, thank you for that. You're welcome. That was, yes. The jury is literally still absent. Oh, my. Time will tell. Well, that's one. That's two juries. Yep. A lot of juries. And we got another jury. Many juries. We'll get Kramer's mad dash and countdown to the opening. Bell futures are a bit weak here, as the 10-year crack is back above four and a half. Stay with us. This podcast is supported by FedEx. Dear small and medium businesses, no one wants happy customers more than you do. That's why FedEx offers you picture proof of delivery, package list and paper list returns, as well as weekend home delivery to 98% of the U.S. on Saturday and 50% on Sunday. See the FedEx service guide for delivery information. FedEx ground service is also faster to more locations than UPS ground. See what FedEx can do for your business. Absolutely. Positively. FedEx. The mad dash for this Wednesday, as we wait an opening bell two minutes from now, you want to talk a little more Lulu, which you mentioned briefly. Yeah. No, I'm a little, I'm perturbed about Lulu, not interested in buying it yet. I do think it's a great company. With David three pieces, cut price target. Morgan Stanley, $4.94.04, Callan, $5.15, goes to $4.37, and then City $500 goes to $4.15. The problem with all of these, David, is that the stock is at $2.95. Yeah. So, I mean, the value added here is not that great, but City does say the tenements got into your negative, but the others talk about price competition, you know, there's that light out there. There's a bunch of private guys, and I just can't get my arms around, but I will tell you that when you have a stock that's down like this in this market, they tend not to bottom. So it doesn't important till the first week of June, but as you can see, this was another darling. It's just not fair. It's not the worry. It's about price competition, generally. Yes. Price competition. Deaf lettuce of the world. Yeah. And also, David, back to work has hurt that. Because people don't buy anything from back to work. People have to look a little better when they go back to work. Yeah, but they don't go back to work. So is that why? No, no, people are going back to work. Oh, they are. So that's hurt them because... Well, people have to dress up and you can't. They're not back to work. Well, yeah. Well, you can't wear their stock. Chase had? We can wear their pants. I wear their... I wear their... Those Lulu pants. I didn't make a word, Chase. You made me very good at Jake. Good morning? I'm not... I mean, working five days away. It's Jake. Good morning. You can't wear Lulu. I got the memo. Yeah. Right. City. Bring back. There's 600 on Friday. It's difficult to do remote when they got regulators. All right. All right, guys. That thing's changed. And anyone who doesn't acknowledge it is really looking at the non... The night in the weeds. Because in the weeds, everyone's saying, "Listen, I can't mentor you unless you come back." Can't mentor the keyword for driving people back. Let's get the opening bell here at the Big Board. It's perspective therapeutics, recognizing national cancer research model. At the NASDAQ IndyCar driver Joseph Newgarden, winner of the Indy 500 this past weekend. As it looks like we're in for definitely a nine-to-one down open trip. Oh, then you've got to buy something, Chief. Remember, the late Mark Haines always said nine-to-one. You just got to find something to buy. And that's what we're doing. I can't mention it. Obviously, we do have a club meeting tomorrow, David. Oh, good. I welcome you to attend. Oh, thank you. Yes, sir. Okay. What time would that be? Okay. Got it. Let's put that down. You're really about as bad as my wife is. Don't get down, man. There's a lot of people who care about that club meeting tomorrow. I guess I shouldn't call you during a lot. What are you going to talk about at that club meeting tomorrow? Well, it's formative. Okay. But I'm going to talk about how the self is presenting buying opportunities for some stocks that are so low that you just... I do talk about the Starbucks issue. And I say, look, there's some stocks that are still not there yet. And then there was... I don't know if you guys caught any of the Starbucks... I know it was on your radar. This chatter about understaffing? Yeah. And this Bloomberg article about the waiting times and... It's just... It's suboptimal. It's a suboptimal situation. But the stocks are going down that much. People waiting 40 minutes for Starbucks coffee. See? You can say that coffee's so darn good. Has the stock bottomed at this point, though? It's trying. What happens? It's trying to bottom. Yeah. It's trying. I mean, look, it has a little... It's had a bit of an uptick there. You see that? What do you get, Charters? Geez. I have begun, David. As far as this thing... Reverse head and shoulders pattern. It is. In yield three. And when you... That has been the level where a lot of stocks begin to find some footing. I think, David, you broke the story yesterday, which seems to have zero impact whatsoever, which is the Texas Instruments story. Yeah. Had no impact whatsoever on the stock. None. None. And the company I should add, by the way, that we did hear from Texas Instruments. Hold on. Let me just make sure I... You spoke? No, they had a statement. Yes, they're not. They say they received the letter from Elliot this morning. They're reviewing it. And as always, their focus is on continuing to make decisions that are in the best interest of TI and all of our shareholders. Yeah, that stock has not moved at all. In fact, it's probably lower than when we first reported the news of the $2.5 billion investment by Elliot that is focused really on trying to get the company to improve its free cash flow in a significant way by at least getting more dynamic on its capital spending. Well, there's an example of what you should buy. Right here, right now. Being pulled down by the futures, everybody thinks that any semi that is not directly correlated with NVIDIA is not real. They've got maybe the foremost activist of our time in there by some Texas Instruments. Okay, there's a good example. All right. People are not doing a lot of buying this morning. The S&P down 0.77%. The NASDAQ obviously coming off those recent highs, but it's down to 3/4 percent. It's going to be cemented in the month program. First three minutes of trade. It's not the bonds. People are saying the bonds. We talked a lot of sales for us. Let's talk a little del because that will report tomorrow after the bell. Okay. And there does seem to be a lot of enthusiasm. You mentioned Dell, of course, because it's one of the names along with AMD and NVIDIA that seemed to support the market yesterday. Dell has that lock on buying a lot of those NVIDIA chips and putting them together in the servers that, of course, go into the data centers that everybody needs. Right. And if you want to connect with NVIDIA, you use Dell. It's kind of like the, well, I'd like to get set up. And they have an AI PC. Right. And remember, Michael was the only executive featured in the front row of the GCC conference. The only one. One. Yep. Important. It would seem. I'd say so. Because you need to have that ability to actually get the chips from NVIDIA. We've got a price target upgrade today from B of A on Dell. They go to 180. From 130. Very reasonable. I mean, maybe they've been behind a little bit on that one. Of course, given that 130 is 35 bucks below where the stock is. No, that's worth it. Nobody's perfect. Down 412. Nobody's perfect. I think it's time to do a little. Just take a couple of nipples. I know you've been all over the PC refresh cycle. I love that. B of A also has got a piece about what they're calling the Intellifone. And that is an AI powered iPhone. Yeah. Mizzoujo with a similar PC yesterday. That was a very, very gutsy piece. And a lot of people were saying to do it with Qualcomm. I have to tell you that I think that the stand that Apple made yesterday, which then was then eroded, another good place to be, would be Apple because the numbers are good there. They got a victory in China over the App Store fees. B of A goes to 230 here. You know, it's interesting to mention the App Store fees. They do take a lot of service fees out of China. And people forget. I mean, service day that is what has made a lot of people say, you know what, that let us ride through the desert, the value of the shadow of the 16. Right? Well, we're counting. Now we're getting close to the developers conference in terms of when we may actually hear a lot more about the plan when it comes to generative AI. Don't forget, we'll get better from the Vision Pro to me. I hear from something involving writing to the Vision Pro. I'm a fingers crossed. He won't give it up, Willie Carlin. No. He just won. Because I saw what Jensen Wong could do with it. But I know that that's -- It's going to be -- I don't know if you heard Carl. The Enterprise. That's the key for the Vision Pro. I thought the Enterprise bad. Enterprise good? Enterprise bad. Enterprise software. Enterprise software has been the Enterprise for the Vision Pro is where the action's at. And if you believe that, he's got a lot of land to sell you in New Mexico for a theme park. Which by the way, we did get some numbers raised, Disney Netflix gym out of Morgan Stanley. And we got some more on a two-trailers button knocking today. Look, I happen to think that you buy Disney here. That was one of the things I was going to talk about tomorrow in my club meeting. Why? Tell me why. Why? I sold it at 122. I want to buy some of it back. Okay. I sold it on the PELTS blip. Were you there for the blip? I was. I was there all the way. You were too busy killing Warner Bros. I haven't killed Warner Bros. No. No. Go ahead and kill Warner Bros. Oh. By the way, Morgan Stanley. They've killed themselves. Still underway. A.M.C.X. And Para. I know. As the times remain difficult. But she went George Lucas said about studios when he was in Cannes. No. What he said. They said that the creatives now aren't there to tell stories. They're there to service their debt. They're staffed with creatives who got to pay back our debt. That's like the U.S. government. Shoot. Well, these are highly-levered companies. They are. I mean Warner Bros. is discovered where we've talked about a lot in terms of the leverage. Paramount's got a good amount of debt as well. Maybe some of the CEOs should take a pay cut. You know, move the earnings into the black. The old pay cut? Yeah. I'm sure that many of them will consider it. And then decide not to. It's up to the board. It's up to the board. You know what? You don't make times in my life. Let's just say it. Let's just right now. Okay. Let's say it. When you hear up to the board, it means it's up to you. Okay? Up to the board. Hey, by the way, it's up to the board. The board. What do you like? You go to the meeting and the board says, "Hey, what do you want to do?" When you say up to the board, they look to the CEO. They don't just say, "You know what? I'm so glad you brought this up because I've been thinking you ought to take a permanent intellectual vacation." When you do talk to board members who are part of a compensation committee, they will tell you how rigorous they are, Jim. They call the company. They call the company. They bring in the consultants and they bring it everywhere. Hey, but they're making acts so you can make wine. What's the peer group making? How much do you know? And then, of course, they decide to pay their CEO a fortune. And we all like it. So this is the most cynical but unfortunately correct show on business. Jim, I know we mentioned Kava. Yes. We mentioned Starbucks. Yes. This journal piece about private label food. Now almost 22 cents for each dollar, highest on record. And they specifically point out Walmart and... Costco. Kirkland, yes. Kirkland. That's the one from overseas. They're opening 700 stores. But Aldi. Aldi. Yeah. Very, very great. They're out in the hamsters. I'll take you there. Thank you. I'll take you in the name of the hamsters. I say C. Can't wait. In Cisco, the S.Y.Y. kind is fighting the rising prices by doing prepared. Which then, if they do prepare, you don't have to have a prep kitchen chef. So you save a little money and use their food. Remember, Walmart did that under five dollars business which is terrific. I think Walmart is such a... Cisco's actually coming back from where I had them on this week. I think Walmart is another stock to buy. I think Walmart's terrific. David Walmart has probably got the biggest lead over others right now that I've ever seen it except for Costco because they have a small skew. So who are they have the lead over then when you say the biggest lead? It's not over Amazon, so who's their competitor? No, a regular board. A regular board like Kroger and Albertson. This is the four mention. Still waiting on Kroger Alberts. I thought it was Whole Foods. Whole Foods is owned by Amazon. Well, they have high prices. I'm just saying that when you go to Walmart, they have Costco's been a horse. When you go to Walmart, they have such great prices and that's been a place for the stretchy, lower and middle class. It's not where you'll see the hundred bankers who are in Palm Beach for Goldman. You throw a stone there, you hit a banker. Yeah, that's about really bankers these days. They're not as well compensated as they used to be. It's really more private equity. The other hedge fund guys are hanging around. It's probably an industry slide. Yeah. You know, bankers, who wants to be a banker? I mean, Chachi P.T. is going to take their job anyway. And the lawyers, as you pointed out yesterday. Oh, they're dead. They're dead. It's just like what Shakespeare said, right? First thing we do is we use Chachi P. to kill them off all the lawyers. Yeah. So that's going away too. I did some Chachi. I've got Cade this one tonight. And I did not want to know the relationship between Cades, actually knew it. Cades and Nvidia. And I put in Chachi P.T. and it was just excellent. And then I felt like, wow, I'm like cribbing from Chachi P.T. which is nothingness. Did you see that P.W.C. for example, the big consulting firm? U.S. and U.K. firms have signed an agreement with OpenAI making P.W.C. OpenAI's first reseller for Chachi P.T. Enterprise and the largest user of the product. Wow. So you've got that going for you. We're developing custom GPTs to help our workforce with reviewing tax returns, proposal response generation, software lifecycle assistance, dashboard and report generation, and more. Yeah. Counting consulting. Well, I mean, I don't know. I looked up Kavil last night on one of these. Said a massive revenue shortfall. Completely untrue. Traffic down one was the concern, I think. And Riga, we're going to talk to the CEO and the 11-year-old. You have to ask about how he can possibly be so bullish about the second half of the year. I mean, maybe it's the new steak dish. I don't know. But to me, it did not sync up with what I thought. So his outlook is just way too high. Now, I have Chipotle on tonight, and there, the world is their oyster. The world is their, you know, chicken apple store. And then we mentioned the American guide down. A lot of that is due to pricing pressure. They lower the rasm guide. United came out and said, "Not us." Jeffries does cut American, and they up-united today. Go to 65. I thought that was a terrific call because we are getting true bifurcation year between the halves, which is United and Delta, I may add. American Air and JetBlue, where it's just like Katie Borre, the dwarven sellers. Meantime, upgrade of NCLH, Viking with numbers. Another with the NCLH. I don't know if you saw this, the top five travel days in history have all happened in the last two weeks on the airline front. So out of sync, but a lot of it, I'm told, is the strong dollar. It's causing people to go overseas. Yes. You told me that yesterday. I was in Kyoto, Japan. Why didn't you agree with me on one thing? It looked like Venice. I mean, if you, you know, the yen right now, as we know, Sarah Eisen will tell you, of course, extremely weak, and not to mention the euro as well is also quite weak against dollar. So yes, tourists are going everywhere. American tourists. Well, look, I still think that that's a trade that works, but you have to play it through American Express means. Running out of ways to be able to do it without any, with, with any surety. How about A&F? A&F and Dix are incredible. How, what were the short positions? Both raising guns. The short positions must be humongous. A&F at a 20%, at a 10% short position. Dix is such a great operator. They just are killing it. They're like really taking over the whole sporting goods, but up 30. This starts pretty short. A&F comps up 29. No, I saw it and I said, "So I mainly chat cheap eating because that's what I spend all my time doing now." And it's confirmed it. Yeah. That's incredible. And Dix, David, I've got, did you see the Dix? I brought it with me. Tell me. What do you got? Yeah. Well, it's, it's almost as if every other sporting goods store went on. I think they did. Delivers net sales of 3.02 billion, up 6.2, delivers double digit, 8-bit die, no, that's what you focused on. You told me that. I do. But they raised the full year from up to 1335, 1375, up from 1285 to 1325. The analysts were not expecting this. The stock has been selling off since the last time it reported. Dix is just supreme. They don't want to do TV. They're fabulous. Lauren Hobart, please. Come on, you're amazing. They do it again. Yeah. I'm looking at another research report. Dix does it again. Does it again? Yeah. It's sudden. I don't know if you've been to any of their stores. I have actually been too much. They're enormous. They're cavernous. They're just incredible men of fun. Yes. You can get your steps in for the day. Yes. Just walking around your dicks. Yes. But overall, guys, a negative tone to the market. Obviously, Jim presates that with a lot of his comments right around the 9 o'clock hour. We have the S&P down about 0.8%. NASDAQ's similar. Nvidia giving up some of the games from yesterday down to 0.5%, AMD down some 4.3%. And I mean, it can't help but also look at the 10-year because it does feel as though when yields move up. We know where them go in. The machines take over. Let's not forget how much volume is basically either. Are those kinds of platforms? Interest rate ticked up ever so slightly. There it is. We're forced over it now. It's so ridiculous. Hello. Look, I read what we were reading about the adjusted mortgages, how they're now abused. Well, I mean, the Fed wants this to happen. The Fed needs things to cool off. That's what they need. Okay. I hear you. Well, if it's happening in fast food gym and at Walgreens and Walmart and Target in the airlines, are we getting somewhere on that front? I think we are. We do have two economies. We've got the rich. This is the F Scott Fitzgerald market, which is just unrelenting in bidding wars on shelter and they move everything up. And then there's the lower to middle class, which says an 80% was in restaurant business. 80% of them believe that fast food is luxury. What has happened in this country? 80% think fast food is luxury. Wow. Yeah, the sentiment stuff, Jim. The survey stuff. That's a little weird. That doesn't. Yeah. I think I got that one. That's a luxury. It's a luxury. Yeah, it's a luxury. But 3 Club 4 is coming real fast. I'm not Richard III, Claude III. My kingdom. My kingdom for a chat? For a big Mac. David's right. Ten year four six is taking the wind out of the equity sales. All sectors are red. Dow Jones. Industrial average. Year to date gain. Now back to 2% compared to the S&P's 10. As for bonds, we'll watch it closely today with Beige Book of Two. Williams and Bostock as well. Stay with us. It's time for Jim and stop trading. I mentioned enterprise software and the problems with it. There's one company that seems to be immune because it's now the king of cyber, which is CrowdStrike. Now they report June 4th. This company has yet to miss a quarter since it came public. George Kurtz and they have a terrific business. That's the last remaining domino. And I don't think that domino is going to fall. This is the Mizuho note today, I think, on software. Keeps getting worse as all types of software prints are sold. Both good and bad. Feels like no way to win. Always darkest before the dawn. See, I moonlight. That's a piece I wrote. You know, Sudan. Sudan. Yeah. Okay. But I have a show tonight, Dendell shows. I've got the three C's. I have Salesforce. I've got cadence. And I have Chipotle. Wow. Let's go. Yeah, and I'm going to chat with Jim and I those guys. What a show. You're going, Jim and I not chat. You think Jim and I because Chad, you've got to give Chad a break. Chad's tired from it. Chad's a little getting tired. Chad's cast. But anyway, look, I think I'm going to reiterate that I would be a buyer here. That I think things are overdone. I think there's an end of the month program. And I kind of like what I see. I just gave you the preview of my conference. We didn't mention Chewie's buyback. We didn't mention Robin Hood's buyback. Just double and double back. Good example. Well, you know, Dave was talking about like individual stocks cease to matter. Yet here we have Chewie reporting great numbers. Dick's obviously made your whole year on that one today. And I just find people are, you know, Robin Hood is a $17 billion company. And they're buying back a billion dollars worth of stock. And like, what is that nothing? I mean, these are just, yes. Okay, American Airlines was not good. Well, I did start the show by talking about enterprise software potentially. Oh, no, no, no. You sound like the most positive tone. You just heard my piece that I wrote from Mizuho. Oh, and Mizuho pieces really. You know what? You know what is working? No. Go Daddy. Go Daddy. JP Morgan goes to 175. There's a good looking chart if you're talking small business creation. Well, there you go. There you go. There you go. I bet you JP Morgan's up on the news that Jamie May remain up. What were the periods you gave? It could be three years and four months. It could be four years and seven months. It could be three years and nine months. It could even be two years and eight months. And this is why people pay their cable bill because of what you just heard. Right there. Or I can't say for another five years. That's court. That's entirely. And then be chairman for another five after that. Who knows? We'll see what the board says. Courtless people over the country are trying to reattach the court into that. And Lulu, which is now overly kind of inside America really. And the world really needs. Yeah. Thank you. Thank you. Club tomorrow. Noone. Don't miss it. Or tonight. Looks like a show, Jim. We'll see you at six. What does he make fun of? Never. No fun. Only that money. Six p.m. eastern time. Obviously in the red off the opening lows, but just barely. Stay with us. 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. 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