Hey, Fidelity. Can I get a second opinion on stocks in the Fidelity app? With Fidelity, it's easy to get an outside opinion from independent experts in a single score. And then? When you're ready, trade US stocks and ETFs with no commissions. That's right. I am always right. Investing involves risk, including risk of loss. Sell or assessment fee not included. A limited number of ETFs are subject to a transaction-based service fee of $100. See full list at fidelity.com/commissions. Fidelity broken services LLC member NYSE SIPC. Market insight and analysis. You're listening to the opening bell of CNBC. Squawk on the street. Good Friday morning. Welcome to Squawk on the street. I'm Carl Kington here with Jim Kramer, David Faber at post nine of the New York Stock Exchange. Two darn hot jobs number for May, 272,000 defies expectations of 185. Futures are lower. Yields pop to the highest level since about Monday. A roadmap begins with Fed expectations following today's hotter than expected number. We're going to break down what it means for the rate policy outlook. Plus, we continue to be on mean watch. GameStop shares are sinking pre-market. The company's selling a lot of stock. It also has falling revenue. Roaring Kitty, by the way, teases a YouTube stream today. And Kathy Wood praises Tesla CEO. That's ahead of next week's shareholder vote why she says it would be unconscionable to renege on neuron musk's payback. Let's begin with reaction to the jobs number. As we said, 272 minor revisions downward. Jim household down 400 plus. So once again, we have these split signals. Right. I mean, look, I think that the public looks at the four and says we've had this incredible string of below four. So things are starting to get a little softer. But the actual number, if you look at the gains in service jobs and government jobs, I mean, it's really rather extraordinary. All those service PMIs that look at they were strong, they were strong. David, they're still hiring. The government's putting a lot of people up. But if you have hospitality, if you're anything involving service, anything travel, anything leisure, they're just not stopping. They're just continuing to spend. People keep hiring in those spots. I think this number was a disappointment to many market participants who had hoped that any number of weak spots were showing that there was significant softening in the economy. Health care. And that is why we've seen the 10-year come down and yield over the course of this week and in recent days. And that's all reversing and the hopes for a rate cut soon. So to speak, let's call within the next three, four months, perhaps starting to starting to dissipate on this number. Jim, it's hard to make sense of where we are right now. Well, did you agree? Is it really? We put through a huge amount of stimulus. Health care got set back by the pandemic and now people are coming back. I admit, trying to tell you, you can't believe how the nature of operations, how many operations are being held that have been held back because of COVID. We know that travel leisure can vary strong. Now, all the other industries, by the way, manufacturing wholesale trade, transportation, warehousing, information, financial activities, nothing. Nothing. There's no gains there. It's just the government was so much dead that they took down and paying people to do infrastructure and health care. Well, you know, you got to catch up with all the operations that were delayed or deferred. And we got a generation of boomers, Jim, who were getting older, need doctors, need medical facilities, elderly care, you name it. Look, this is about news. It's about backs. It's about hip joints. It's when you talk to Medtronic, which is involved in pretty much everything in the operating room, business is really good. And that's what you're seeing when you see this number health care at 68,000 jobs. I mean, look, we are doing ambulatory health care services is the strongest part of this economy. So if you're a generation of consumers who are either going to travel or go to the hospital. Well, yeah, I mean, you can make that case, which is why there's just been this huge move in a lot of the hospitals. The hospitals are doing great. You know, that's not necessarily what you went out of your economy. You would like to, I mean, people keep talking about how the AI economy is. There's nothing. AI is bad. Okay, AI means fewer jobs. The people in Silicon Valley are all holding and trying to figure out what to do. But if you're in the hospitality industry, you got to hire more people because more people are traveling. This is still, I'm surprised because people have been saying it's more overseas travel, but it looks like domestic. And it's a good economy. Can I say it's a good economy? The jobs aren't where we'd like them necessarily. But what do we care? I mean, if you want a job, you get one. Isn't that what's about? Want a job? You get one nursing and residential care facilities. Go to nursing school. It's hard. Actually, we need more nurses. Yeah. Well, maybe that's where the robots will come in at some point. Okay, so I knew you'd bring it up. Oh, good. I'm glad. And remember, when you ingest, if you ingest into Blackwell, you ingest into Blackwell. Well, you're trying to sometimes when you're trying to train a computer. Yes, train. No, train a train. If you could, um, not train, I don't know. Well, it's the, it's the Blackwell. All right, Blackwell chip from Nvidia, which by the way, has yet to ship. Oh, I know. That's right. We got Vera Rubin coming right down. Okay. So what's your point about the last one, robots? Okay, so let's say, all right, Dr. Kildare, I don't know what doctor you want Dr. Marcus Welby. Do you want to do like Chicago, whatever? I mean, whatever we want to, we do a lot of hospital shows and it'd be sick. Grey's Anatomy. Grey's Anatomy. All right. So you put Grey's Anatomy in and it learns how to do whatever's good in Grey's Anatomy. It doesn't do what's bad. Now, if you actually do a hospital, like, you know, let's say you had a colonoscopy. I mean, do a colonoscopy like there's no tomorrow. Oh, so the robots will take over doing. Yes, because they have no errors. Like metrotic has one with AI. It has far fewer errors. I mean, don't we want precision medicine? Well, humans don't know how intuitive surgical does. That's a ball. That's, that's not AI. But when we get it to be an item, we don't need humans at all. Right now humans still place where you put the intuitive surgical. So net net, Jim, is this, is this a push? I mean, were you really hoping on a July cut? I know JP Morgan and CDR, but well, look, we always do this kind of give up what we thought. There's kind of a bullish week thinking that it would be weaker. Look, I care about where the jobs are being created. And I know that when we talk about COVID and post COVID, people can't believe because COVID seems so long ago to us. It's just not long if you're in a hospital. There's people keep coming back and keep coming back. And you write about the boomers. The cohort boomers, David, they're, they're joints suck. Yeah, it doesn't get any better either. A 10 or two hours of sitting in this chair. I saw him right down, zebra one father time zero. You lie to yourself. There's no one beats father time. No one beats the Yankees and it'll be father time. It's like pretty interesting. Well, more media, Jim, we got the meme frenzy to talk about game stock down pre market after soaring yesterday. Company reports this Q one sales decline files us plan to sell up to 75 million additional shares. Stock did surge 47 percent yesterday as Keith Gill schedules this YouTube live stream today at noon. His first on that platform in several years, Jim, and we're definitely going to pay attention today. Yeah, look, I think that this has become exciting. I saw Dave Portnoy tweeting about it. I mean, everybody's kind of in on it. The de jans that was interesting. Now there's a, there's this whole skein of thought. I'm going to pose this right to David, because David is a cynic. So, whole skein of thought would just says, look, this is the have nots time to have some fun in the stock market. They have nots. Why it's only dominated by, I don't know, Barry Stern look. I mean, who do you want me to say? Oh, geez, little interest. You wanted that, you wanted a fed cut. Yes, Barry. Yeah, Barry's not feeling so great about S3 right now. Yeah, I picked the wrong guy. Yeah, you did. Yeah, I picked the wrong guy. Okay, it's dominated by Larry Fink. Okay. Okay. Now, Larry Fink does not dominate him. He just is in a positive repository. But they think, they think I'm a horrible person, because I was, I've done okay. Harp, because I called into you guys and said sell GameStop. I've never been able to look at my Twitter feed ever since then, because I'm just so hated because I said, oh, GameStop's overvalued. And I'm not realizing there's nothing to do with GameStop. They just picked the stock, they could have done Best Buy. It doesn't matter. Jim's referring to this journal piece about de-gens, as you said, degenerates who are in the market, stock market, essentially as a lottery ticket. Right. And it's not, by the way, the journal piece quotes a lot of folks who live in, say Europe, not America. I know. I think it, look, it's fun. We had Gary Gensler here. Did he say anything about how much GameStop? Wow. Fun or not, it's given GameStop an enormous amount of capital. And Nate can become a SPAC. And what, Ryan Cohen's a SPAC. He's, he's raising capital develop. He can buy what, what company it was. I mean, you had up the 45 million shares they've already sold to the 75 million they're going to sell today, average, average price. We're talking billions of additional capital now for the company as a result of this run up, which is pretty much solely the result of one person. Right. Roaring kitty. A.K. Keith Gill. And, but have you looked at him? God bless him. Have you looked at him? Who? Keith Gill. Yeah. I mean, you know, he's like a good guy. I watched the movie. He's a good guy. Of course, I was also in the movie, dumb money and. You were a bad guy. No, I was not. I was myself. No, people say you look great. So bad guy, good guy. That just depends on how you can do me. I'm saying that this guy is he's an every man guy. What am I going to say? He seems like a good guy. He doesn't sell it. He's talking to Ryan Cohen and Ryan Cohen's giving him a tip saying, listen, man, the numbers are good with numbers. We're awful. He's a rich guy. And he has helped GameStop put together a huge stockpile of funds, which by the way is something you had said they should be doing years ago in this first started. They laughed at me like they left a carry right before John Travolta got it. And obviously AMC previously benefited from this in terms of being able to raise money for a very much stress balance sheet. So there have been beneficiaries. Ultimately, I don't know if those are going to include the shareholders, although along the way, many have made money. And if they've sold at certain points, they've locked in big games. But don't you think that it really is just a tug of war? It doesn't matter like GameStop. Remember McGuffin, the McGuffin in Hitchcock? It's kind of about nothing. Well, I mean, it's just like the Maltese Falcon. It's like, there was nothing in the Maltese Falcon. Yeah, I would agree with that. Just a Maltese Falcon. I would agree. Yeah, so it doesn't matter. No. And it doesn't matter. But it's a circle. We're still spending five minutes talking about it. Well, we have to because America's talking about, I mean, I debated this is my got up, my trainer came. You know, there's poor AM trainer, what the hell's that about? How come he keeps stowing at it? Trying to stave off father time? Father time, I'm crushing father time. You know, he says the first thing he says is like, so what do you think? I'm like, what do you think? I don't know. Yankie's won. Philly's didn't play. I don't know. No. Does Gil have it? Well, Gil have it. What's going to be on the 12th? You did right this morning. Maybe with this money, they can buy something that makes money. Yes, because this thing doesn't. GameStop. Well, right. At his point. There's lots of things to make up for a private recovery firm. They can be read. Best read. They can now throw some money out there and figure something out. I assume they're not going to just reinvest it in the business itself. But what do I know? I have no idea what Ryan Cohen's playing. It's that two point. He doesn't communicate. And you're invited on, Ryan. Any time you want to come on, I doubt he's watching. Well, he, look, these people are not, they're not us. They're not us. To me. They mean people. They're regular people who think that this market's rigged. I'm not a regular person. No, no, the DJN, the Apes. They think the market's rigged. They think rich people have it rigged. You're not going to convince them that they don't. And I got to tell you, I mean, like, there was a time in my life when I was a Trotskyite. And I would have been trying to get the people united. No, it's not. It's the people united will never be defeated because the workers united will never be defeated. So it's not the people, the workers own the means. So this is part of class warfare. That's what you're saying. Thank you. Yes. That's all I'm saying is against capitalism using capitalism. Yes. And I don't disagree with their right to do it. I'm not doing the Andrew Joe thing. It's this is, you're not doing the meanness. I'm sorry. They not mean they love each other. But I'm just saying that what's happened is there's a group of people who feel that rich people are in control of the country. Now, I think there's a lot of people. I think President Biden thinks there's a kleptocracy that's control of the country. I don't think he's like different from these people. So then the solution is to give those people your money? The people, the solution is to take the wealthy people's money. But you're pulling. In this case, it's not really suffering. The first go around, yeah, it was the rich hedge fund manager who short the stock and you could actually really inflict a lot of pain. That said, of course, he still is fine. This time, I don't know. No, they don't have the same short expense. And you don't have melding. There's no hedge fund. Well, look, this time, it's a little more Ali and Mazar. But at this time, you're actually giving Ryan Cohen an enormous amount of money. And Mike Santoli just points out to us that in December, the board handed Cohen control over corporate investments. No, that's what I'm saying. It's a SPAC. Cohen takes the money. He makes something of it. This time, I mean, to me, Gil is betting on a company that a few days ago was, well, three weeks ago, it's more fun. Now's a lot of money. And maybe he makes money. Remember, Gensler goes after him if he says anything good about GameStop and then sells, right? That's Gensler. And you're sitting right there, just bring him right in. But I don't think he's going to do that. I don't know, wonder what law he would prosecute him. What, if he pumps and pumps? Once it helps with the 34 Act, I don't know, is that he's not going to do it. He doesn't know anything. Well, how is it any different than Kathy Wood coming on and saying I love Tesla? I would tell you that I was any different. I think that he's far more responsible, far more responsible. As it was pointed out this morning, a former compliance officer. Right. I think he's far more responsible. I totally get where he's coming from, which is that I always felt the rich people had this place rigged. And then I went to Goldman Sachs and it turned out they did it. But then I became the man. Hell, I wasn't the man. I was a union leader. Something that was the man. Yeah, you are the man. I was not the man. No, you're barely a man. You're living in your car. Yeah, you're a dollar sign. J.P. Stevens, the Barton strike efforts. That's the rating of the man. I led the strike efforts. I have a fire for a long test strike. All right, Trotsky. That's great. I'm just saying that I'm not the man. And I like Keith Gill. I think Keith Gill is trying to make money. And he's just not taking it from other guys now. We have to stop with the music because I saw what happens if he talked with the music. They just cut you off here. They do cut you off. I don't want to do that. Really, you have more to say about this? What more could you possibly have to say? Men's wear. Good luck. I was waiting until we got this. It took 15 minutes for him to get to the jacket. Wait, I wanted to finish my Keith Gill wrap. When we come back, some familiar names on the street, weighing in on Elon Musk's pay package vote next week. Watch futures here. We'll talk a bit more about the jobs number. A bunch of names to get to. Cart, DocuSign, some regional banks, 3M, Exxon, in a minute. At the UPS store, we know things can get busy this upcoming holiday. You can count on us to be open and ready to help with any packing and shipping or anything else you might need. Is there anything you can't do? Um, actually, I don't have a good singing voice. The UPS! Noop. But our certified packing experts can pack and ship just about anything. At least that's good. The UPS store. Be unstoppable. Most locations are independently owned. Product services pricing and hours of operation may vary. See center for details. Come in today to get your holiday goodies there on time. What's on the horizon for financial markets? At PIGIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialized across asset classes but united in collaboration. Our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PIGIM, a leading global asset manager. [Music] The Tesla annual meeting just six days away. The street continues to weigh in on this upcoming shareholder vote regarding Elon Musk's 2018 pay package. ARK's Cathy Wood came out in favor of the passage. Well, Webb Bush's Dan Ives says he does expect ratification with overwhelming approval. Jim, wonder what you made of both of those things? Well, look, I think that the idea that there is, I mean, Cathy Wood's up in particular in very same. Very same. I mean, it got a good deal, but it might not have been a good deal. It is a contract. I think that the prevailing wisdom is, you know, this man created this $500 billion thing. That's a huge win. And you got the win if you own stock with him. And just because it went down from the top, maybe he still made you a fortune, agreed. The debate seems to be between those who would argue a contract. As a contract, this has already previously approved by 73% of the shareholders who voted. Versus those who are shareholders now say, well, is it really, you know, the times have been tougher for Tesla. We're talking about an enormous amount of money. Does it really need to be that much? The dilution is going to be not insignificant. No, it's going to be from him purchasing all those shares, what are the options? You can't put that. Got a five-year hold without a doubt. It does sort of take him back up in terms of his ownership back into the 20s. After, of course, he sold a lot of stock, remember, in part to fund his purchase of Twitter, now called X. It's going to be interesting. I'm curious to hear that Dan Ives said overwhelming. That is not the read I'm getting. Was you wearing the pink jacket or the green? I don't know what Jack is doing. It's on one way any wearing. Speculative, and the green means I've got it back. You know, there it is. Overwhelmingly re-approved. We'll see. Certainly, if you get a big retail vote, you'd expect that that would be very much in favor. Institutional is going to be important. I pointed out the index funds, other institutions. We're not getting a read, by the way, at this point, at least in terms of people. The votes haven't really begun from the institutional side. You know, they all vote next week. It'll kind of come in next week. So no read yet in terms of where this thing's looking. Now, yesterday, Andrew interviewed the chairman. Robin Denholm, the chairman of Tesla, yes. Anything convincing you that there are real board meetings with real conversations and things get rejected? Well, that's what she said. So are you questioning whether you believe her? Well, I'm just saying that you have a person who's a dominant board member with a board that doesn't seem all that independent. Now, look, I'm not, I don't care about that. He created a lot of ways that-- Well, that was-- That was why I didn't tell the board to overturn the compensation board to begin with, basically saying business judgement rules and apply the non-independent board. Right. That's why I'm saying that to me, the only way you should be able to defeat this. Because Carl, we have, why don't we look at the 499 other people in the SP500 and see who's created more well? I don't know. Well, I know-- If I watch shares this year, do I care? No. I know. No, I mean, Jensen, Jensen Wong created more well. Yes, he did in 74 trading days. And now they hate him because he's got-- Who hates him? The people. The people who are united who are never defeated. He's not gonna hate him in the future when Skynet's created, and we all look back and we know. But yes, that was the reason. When I get you in the SPARs, just workers' leagues, the SPARs as workers' league, that was a good league that I was in. Good times. I joined it mostly because-- Never mind. Kramer's a mad dash, and the opening bell coming up after a short break. Take another look here in futures as we try to erase some of those post-NFP losses pre-market stay with us. At the UPS Store, we know things can get busy this upcoming holiday. You can count on us to be open and ready to help with any packing and shipping or anything else you might need. Is there anything you can't do? Um, actually, I don't have a good singing voice. The UP! Noop. But our certified packing experts can pack and ship just about anything. At least that's good. The UPS Store. Be unstoppable. Most locations are independently owned. Product services pricing and hours of operation may vary. See center for details. Come in today to get your holiday goodies there on time. For the reason I'm mad, Dash, you're on the final trading day of the week. You had Chub, CEO on with you on Mad Money last night. Yes. Now, I'm going to be really careful about this, but Warren Buffett owns 6.4%. This stock sells at 12 times earnings. Greenberg's probably the foremost underwriter in the country. In the world, they could big business China. That's a great relationship with China. He wants to engage. Has a letter that puts Jamie Diamond's letter to shame. It's unbelievable. And I'm telling you that this thing is still at 12 times earnings ridiculous. This stock is going much higher. And I think Buffett could continue to buy. That's not for metal. But I was just so impressed. It's like insurance. We know that, obviously. Well, that guy goes actually not as big as Chub. But in terms of an endorsement by someone who knows insurance, Warren Buffett knows insurance probably better than anyone else in the world. And he bought Chub. And the stock is odd. But it is still undervalued versus the other insurance. It gets the multiple up though. You know, big shirts can be a dangerous place to play. Absolutely. So you have to rely on an underwriter who knows how to underwrite. How French is he? They had the clear meaning for the Baltimore Bridge. But his exposure was almost nil because he laid it off. He knows how to lay it off. I mean, sure. He knows how to lay it off better than anyone. He knows how to watch it. And I've got to tell you why this stock is where it is. Why not? I mean, all right. Let's take travelers. Why is travelers price-durnish ratio higher than Chub? I don't get it. So they're right. Chub. They're right. People should go look at the interview. And if you don't come away impressed, I don't know what to say. I mean, I don't know what to want. You want, you need Kitty there and I give him a layup? I don't know. I mean, it was good as it gets. At the big board today, quadratic capital management celebrating the fifth anniversary of its interest rate volatility and inflation hedge ETF and at the NASDAQ, Waystar, health care payment software company celebrating IPO. Well, CEO will be on the exchange today, Jim. Oh, that'll be good. Because that's where the action is. Health care. There's been a huge number of biotechs that have been brought public. The whole system, the whole chain from the operating room to the doctors, to the docs in the box, to the nurses. If you take a look at what Walmart did when they got out, when they had 51 units that had health care and they got out, they closed them because they could not find workers. That is the area of the economy, David, where you cannot find workers. And that's important. Yes, it is. It is important. It's very important. You've made that point and it's growing. Yes, because there is a need to service this growing population of old people. Well, they're not old. Getting old. Well, just so you know, Vail didn't do as well as we thought. Wow, the miss out of Vail was really interesting. And today, Matt Boss, one of your favorite analysts, Jake Morgan, goes to underweight. Some of the spring skier trends, Jim, the pricing that they got out of COVID. Okay, I think that we're seeing. Now, everyone uses the term normalization. Normalization means we raise prices too much. People stop coming and so now we got a cut price. That's what normalization means. And they use it normalization. Now, I've got to tell you, it isn't like they were off that much, but this thing is just one of those 60 yields, 5% negative weight. You got to hope for snow. It's like, you know, white Christmas. You got to hope for Bing Crosby and then Danny Kay. Danny Kay was a better actor and singer and dancer. Danny Kay. Is that Rosemary? Danny Kay. Underrated. Underrated, Danny Kay. Holds up, holds up. He's also an intellectual. He's an intellectual boy. Yeah, but you look at this thing and say, "How could this thing be yielding 5%?" Well, the answer is that they price wrong. And now, every analyst, the long knives are out for bail. Very unusual. So do you think that there's an example of price normalization and maybe disinflation? Is that why the market is taking this jobs number in stride? Yes. Normalization? I mean, like, people are switching to Norwegian crews. Biking is a better bargain. They're like, I mean, I had more class on this night from Campbell's suit. They can't raise price. They have a more bad price. Although the Rayo's acquisition, really paying off for that. Surprisingly, great worldwide brand name. But I do think that everybody that raised prices big realizes they have to take them down. Remember, Walmart has rolled back 7,000 items. 7,000. Great piece today on Reuters. Looking at the consumer still spending, but getting pickier. And the list of things they really want is narrowing to A&F and deckers and Burke and some names like that. I know. Now, I'm going to be careful, Crocs, because I sent David this. Ollie's has Crocs knock off for three bucks. Yeah. You saw that? You did. Yeah, I saw the image. Show them the flyer. And my school order may be Crocs opportunity. Or Crocs knock off opportunity at Ollie's. Well, I'm just saying that Ollie's had a great quarter. Because Ollie's is actually cheaper than five. Take a look at five. Five below. Five below what about it? Yeah. They ought to go into mountain climbing equipment. Five below it would be like your face. Because they show up this Ollie's. I think this is the third day in a row. You've mentioned Ollie's. I'm part of Ollie's army. I am. We know who you are. And I'm in the quicker town store, which just has unbelievable merchandise. They had a collection of World War II books. David, they were in a fire. And they were water damage? Yeah. You think they're not readable? I saved it. I committed killing. When I went to Ollie's. You buy like tarps at Ollie's. I'm just saying that Ollie's is the lowest of the luck. Okay. Even Dollar Tree's too high. Five below is too high. So they go to Ollie's. TJ, no. The TJ here right now. I went in to buy a coat. Remember, they don't have anything other than summer. They know how to do that. There's a couple of guys who figured this out. A&F has figured that. And then there's a lot of retailers that haven't figured it out. And they're doomed if they don't figure it out. Jim, here we go with the volatility halts on GME. Uh, yeah. David remembers when he thinks GME, to me, members Ross Perot. I mean, that was a symbol for Ross Perot's company. GME? Yeah. I do remember that. This is not GME. Perot systems. Yeah. Well, look, this is just, it's blood sport, David. It's blood sport. It's just blood sport. It's actually not bad. If they can get the stock off there, maybe they've already sold it. I don't know. Did you see that they didn't load up on calls? It's their idea with Jeffrey Trapp. They're doing this for them. Trapp the market makers. And they get a, you know, a corner. They're not doing a corner. Right. They're not. There's no corner. They didn't trap them. And then you make it so that they had an unhinged stock. This stock was 10 bucks not long ago. They're happy. They had a $30 range in the last 24 hours. They're overjoyed. Hey. Ryan Cohen's like, oh my god, I'm going to have billions of dollars to decide what I want to do with. Well, do you want to just talk about the combined ratio of the insurers? I can do that. I'm happy to do that. But actually, I was thinking, you know, because Jeffrey's, I believe, is selling, is operating for GameStop here in the marketplace. And remember when they sold that stock for Hertz when they were bankrupt? Yeah. And we're actually in a position actually create a lot of equity value. That was interesting. I mentioned it because Hertz you saw, right? Jim? Weighing a $700 million sale of secure debt and hertables? It's not doing as well as a number of, a number of, I think it's a Bloomberg story. Yeah. It's not, it's a tough road for Hertz. Exactly. So to speak. Exactly. It's not for. The EVs have really hurt. They've got, remember, that was not Steve Schur. That was not Steve Schur's game. Steve Schur did not make that decision. He wanted to reverse that. The first thing he did, and he came in, he said, we have way too many tests. We got to get out of this thing. But it was too late. Wait, what does that mean? It means put up a stock price of Hertz, take off GameStop. That's what it means. Oh, yeah. Okay. Because we're talking about Hertz. How's that going? We're stuck. Maybe they're stuck. Well, maybe it's, it can't get it to move. Look, the fact is, is this Brian Cohen? Is, is genius? He's taking advantage of it. Because they are doing terribly. Gil doesn't care. It's about winning. Now we're back to that. I wanted to finish my point on Hertz, because it was interesting on EVs. Yeah. It was not just the price cut that Musk took. It was also so many people who were actually getting rear-ended. I'm sure you've heard this because they didn't have it. Well, because of the way the brakes work. Right. They weren't fully instructed. And then the damage that is done as a result of a rear-end is much more apparently in a Tesla in terms of the way it's built than perhaps another car where you can just replace a bumper. Steve told me a lot of people wanted to figure out they wanted to buy an electric vehicle. And they realized, well, they put it in reverse and they hit the guy behind him. No, it's also the fact that you don't need to hit the brake. Right. No, they don't understand that. And, and David's right. It costs a fortune to, oh, there we go, Game Sub. But the point of what Steve was really getting at is that if he had 10,000, they could be okay. But to have a whole fleet of them was devastating. Meanwhile, to David's point about cars, you see this journal piece about new car deniers. They don't want a new car because they don't trust the data delivery to whoever it is, the Chinese or the insurers. They want to stick. Go to carbon, will you? Hey, somebody got another carbon. Apparently they are. Yeah, I'm with them. I can't stand that thing. I have to hit my car. Never half the time it doesn't work. Yeah, I don't like the screen. But it's fine. Because it doesn't respond. Okay, all right, that's your car. And it's distracting. My wife has a 1994 defender. That thing responds like a monster. But it's analog, it's not digital. It's pretty good though. Um, guys, on the deal front, I wanted to mention a relatively small deal, but not that small. Power school holdings. Are you kidding me? I'm not kidding you. Wow. Okay, just a second. Let's go over that. Yeah, let's go over that. It's an interesting transaction in part because it is a go private. Bain is taking the company private. The overall price tag, including debt, 5.6 billion. We're talking 22.80. Now it had been previously reported. The stock price had moved up. So they're talking about it, representing a premium 37% before the stock moved up. So the unaffected stock price is the way we like to put it. I mentioned it in part though, because it is a nice one. Cash out for Vista. They bought it from Pearson for 350 million bucks back in 2015. They sold a stake to Onyx in 2018. The company went public in an IPO in 21, raising 711 million bucks. And I'm not sure where Vista stake is, maybe in the 30% range. But they're a seller here, as you might imagine. Cloud-based enterprise software. First time we've seen any lift in that? For K through 12. That's a very important deal. For K through 12. I do not mean to do that, I apologize. It's important. That's okay. And it takes me then to something else about Vista that has actually had an impact in the private credit arena, in particular the public companies that... Great, it's halted again. Okay. Thanks. So you, what? Really? Don't take it personally. I do take it personally. No, don't take it personally. Can we move on and get back to this? Thank you. But power is going to be sweat. It's making me so angry. Geez. My point was, before I was rudely interrupted by another halt on GameStop, that earlier in the week or late last week, Vista actually wrote down its entire equity value in a three and a half billion dollar buyout called Pluralsight. Now the actual equity check was not that large. Obviously you had a lot of... You had about a billion and a half in debt financing associated with it. But this write down worried a lot of people who are invested in the private credit platforms. Blue Owl was one of the lenders. Ares was one of the lenders. This was tiny in terms of a percentage of their exposure. Tiny and yet take a look at Blue Owl this week. What happened to that stock? And Ares not as much, but also down. You know, he got a number of firms weighing in. Cowan did a couple of days ago saying the sum of many fears the math doesn't add up. But it did bring up this idea of credit risk angst. In part Carl, because as you know, we talk about it a lot, is there a lack of transparency and fully understanding what the portfolios for these private credit, alternative asset managers look like? Yeah, they've been a frequent guest on money movers. We had a big conference in Berlin with Leslie there this week about private. What's the Jamie Dimon phrase held to pay eventually? Yeah, well, look, any time we have these unregulated entities, you have to believe it's some are going to blow up. It's going to happen. But I think the system is much stronger than... Look, Jamie knows it's strong. What happens when Jamie retires? Who's like... In four and a half or four and three quarters? But let's say he retires. Lizzling porn says, "You know what? These are great humbuses. Let's just make it so they all make acts that they can't charge this. They have to do that. They can't charge for checking." And Jamie had been a great states person. He represents the industry. And David, who's going to... Fulton Financial? Who's going to take over? It's interesting. I was having that conversation with somebody recently as well. Probably, I don't think it was the same conversation. But it's about the game stops trading again. Oh, sorry, GameStop. What's halted is not halted. That was cruel. That was really cruel. No, but you're talking about... You're talking about what everyone's talking about, right? Well, the idea to Carl's point. Jamie Diamond is probably in his role for at least another few years. I know he's going to wait until that beautiful headquarters is completed. Right. And that's still a little bit of ways away. But who will be the spokesman for the industry? I can't imagine, you know, right now it's... Yeah, it's hard to know who that will be. Will there be somebody who replaces him in terms of his... Right, who? In terms of his weight, so to speak. Exactly. I don't know. Yeah, that's a good question. Jim, we do have some calls on the industrial economy. Got an upgrade of 3M. That was a very important upgrade. Initiate some rails over weight. Yeah. Young Union Pacific, the usual Norfolk Southern unusual. But I thought that the 3M piece was very good, because Brown, who's coming in, made a lot of money for a lot of people at L3 Harris. I really thought that was just a great piece. Definitely, and I were going back and forth about how... What a breath of fresh air. Look, Mike Roman put that thing back on track. Let's not forget that. We're acting as if Roman had nothing to do with the company. Roman saved the Dorne Company. But this is a bank of Merck piece we're talking about. New CEOs focused on operations and innovation. It's a very compelling piece. But Mike Roman solved these... You know, look, he had combat arms, which is incredible. That was just about hearing David. You have no idea how bad that... They did it. He got that one done. Now, forever chemicals, obviously, we can defer to a piece... You're reading some of the journalism about forever chemicals. I have read some more recent stuff in terms of the... There was a New Yorker piece. Yeah, that shows you that there were a lot of people in terms of what they knew, when they knew it, and being brought to their attention. It's a worthwhile read. That was a New Yorker a few weeks ago. Yeah, and that was painful. But Bill Brown, who had nothing to do with that, is a money maker. And I think that this is a company that people should look at. Because I think it has a lot of opportunity. The other B of A upgrade, actually a double upgrade, is of lift, and they are joined by Loop today. I know you talked to them this night. Oh, nice. You're so good. I mean, you know, he comes to play. I mean, he came in yesterday. He's got this new lock-in thing you can do for commuters. The meat at an airport, without a problem, has made them give them a lot of room, a lot of new people. And David, what they're doing is they're attracting drivers. And that's what they had to do. Once the attract drivers is a virtuous circle, then they get more people. It's in you. Like a lot of people, you'll check your phone now. You won't just go, "Oober, you'll take a look at Lyft, too." Because the prices can often be a disparity. And that's in your favor. Right. And that's exactly why you have more drivers. You have a very lean system. There was tremendous fat to that organization. And Richard worked at Amazon before he went to World Reading Kids. People had to read in Africa. I think he's an amazing person. By the way, he's a Bezos guy. Bezos got who? No, he's a Bezos guy. Oh, he's a Bezos guy. The guy who runs Lyft. Yeah, got it. David Risher, he's really quite a perfect guy. Jim, do I want to own Apple at 194 and 49 cents ahead of Monday? I want to buy it ahead of the developer's conference. Because people are going to be different. No matter what they say, they're going to... People will say, "Oh, I'm disappointed." Disappointed. Interesting. Even though it's classically not a bullish day. It's not a bullish day, exactly right. And guys like me who want something for the Vision Pro, we'll be let down. They won't give you all this thing that you want for AI. I mean, that's just the way it is. I mean, you can write the script about how disappointed everybody is. Although that's what's different about this year's conference we think, is they usually don't use it to talk about the phones? No, they don't. And I think that they... Look, they want people to... This is an opportunity to talk about all the businesses that have been created. And we need, like, let's say Benny offers here. And you say, "What about the CEO of Salesforce?" What do you think of the Vision Pro? He'll say, "Well, there's not enough people writing for it yet." But let's see what happens to the developer's conference. Let's see how many people are writing for it. They want to know... I mean, by the way, when you talk to Jensen Wong, he says, "Look, the reason why we're doing well is that everybody's writing for us." It's this amorphous group of very smart people who either write for App or they're right for Samsung, they're right for Gen Center, they're right for AMD. And the winner takes everything. They write code, they write code. Yeah, even though we know that it's codeless. We'll soon be replaced by, by, uh, generative AI. Well, don't worry, you can take the Eli Lilly drug and live forever and actually have cognitive sense. Eli Lilly has a new drug, David. Just in case you thought it was old GOP one. For all Monday, though, it's going to be... Monday we're going to get the data. Is that correct? The efficacy is fine, the FDA has already said for limit. Don't believe it when it says narrow. Don't believe that. Because once it's approved, the country's going to fight for this drug. You're going to want this drug. There's stuff that the numbers are good. Really? Numbers are giving us a heads up or we already know what the numbers are. Yeah, we do. The numbers are really good. You're going to want to be on this if you have anybody in your family. Who has a history of Alzheimer's? Yeah, you don't want to take this. That has been one of the very, very difficult things to solve in science for the last 25 years, they're all given the potential market for it. You might imagine a lot of companies spend a lot of time trying to do it. David Ricks is remarkable. David's remarkable. Guys, we're going to see if the bulls can get the ball back here after that hotter than expected jobs number. S&P down just a handful of points. Watch bonds today as well. 10-year, 4-4-2 is not near the 4-1/2 that we had on Friday. We will get inventories in a few minutes and then Lisa Cook at noon. Stay with us. Watch DocuSign today. Double beat. Guidance roughly in line. They do tweak the full-year billings guide. Slightly higher, but it was down eight pre-market and currently down about six and a half, Jim, thought. They are two believers in themselves. But the fault is it's like Gloria Swanson here. You know, they just don't understand that things aren't that great. They just don't seem to understand that. All of that was a rough open tape, although S&P down now only four. Stay with us. Let's get to Jim and stop trading. One of the great blue chips of our time was international flavors and fragrances. And then it had a CEO that made some missteps, a lot of ill-advised moves, but they're very much back. And this is the company that provides taste. When you have, say, a hot chip, the hot is by them. If you want a smoky flavor, they do the smoke. They have been a remarkable company and the company is back. Opco recommends it today. It's been a series of upgrades. I urge people to look at this because this company is indispensable and used to throw off a lot of cash. They can do it again. Jim, how are you going to wrap up this week tonight? Making fun of David for GME. I'm just going to -- No, I have to follow GME. I've met Tronic. Just going to have to chart up the entire time of bad money. Well, fortunately, the market's closed when I do that show. But even better. Even better. But I think that cutting-edge medical is the reason why we see health care keep hiring people. Because the breakthroughs in health care have been breathtaking in the last since COVID. And people are now reaping them. Power school. Was that power tool? What were you talking about? That power something? It's a little emanate to share with you. All right? There's not much to go around these days. A little bit here, a little bit there. Goodbye, kitty. Big stuff, sadly, doesn't make it to the finish line. I'm sorry, all right. Whatever. Whatever. That's all you have to say. That's how you're going to end the show. Whatever. I'm a DJ, man. I can do whatever I want. I'm a DJ. You're a rebel. Yes. Yes. Without a cause for certain. We'll see you at 6, Jim. Good weekend. Mad money tonight. 6 p.m. Eastern time. When we come back, any C director brainer is with us with White House reaction to the jobs number. 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 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/squawkonthestreet disclaimer. Imagine earning a degree that prepares you with real skills for the real world. Capella University's programs teach skills relevant to your career so you can apply what you learn right away. Learn how Capella can make a difference in your life at Capella.edu. [BLANK_AUDIO]
