Hey, Fidelity. What's it cost to invest with the Fidelity app? Start with as little as $1 with no account fees or trade commissions on US stocks and ETFs. Hmm, that's music to my ears. I can only talk. [MUSIC] Investing involves risk, including risk of loss. Zero account fees apply to retail brokerage accounts only. 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 brokerage services LLC member NYSE SIPC. [MUSIC] Market moving insight and analysis join Jim Kramer, David Faber and me, Carl Cantonea on the opening bell hour of CNBC's Squawk on the Street. Good Monday morning. Welcome to Squawk on the Street. I'm Carl Cantonea with Jim Kramer, a post-9 of the New York Stock Exchange. David Faber has the morning off. We do set the table for a big week. CPI, Fed decision, Tesla's annual meeting, futures getting dinged a bit by some higher yields in Europe after Sunday's parliamentary elections. Our roadmap's going to begin with this big week on the street. Investors preparing for that batch of inflation data, another big Fed meeting on Wednesday. Apple holding its long-awaited worldwide developers' conference today expected to unveil some new AI products to take on Microsoft and Alphabet, and we will continue to monitor Musk and that major Tesla shareholder vote as one of the company's largest shareholders announced they will be voting against the $56 billion pay package. Let's begin, though, with what we said will be a busy week for the market's, Jim. Fed, of course, in the middle of it. CPI tomorrow. Yeah. I mean, it's odd because June 10th, I mean, maybe it's before the end of the summer, but this is some week and the worldwide developers' conference has been something that we follow periodically. This one has major import for reasons that have more to do with the new phone, but also with the sense of what happened to VisionPro, which I believe there could be a business angle, I know I feel like I'm the lone believer in it, but I think it's exciting because we all kept our phones. I don't know anyone who switched to the, although Best Buy says that Samsung phone is very popular, but they never lost that even though, so I think there's a loyalty involved. The Tesla, there's no loyalty involved. I mean, here we have a guy who built a company and it's heads in the Bears' win and tells he loses. I just find that it's unfathomable that this is a person who built this thing and he's going to lose, I think. I mean, Bernstein had a really good piece. Tony did write a piece today in which they suggest he won't get it and that the stock could fall 5% plus if people are worried that he leaves. Yes. What that's interesting is that Tony's hanging out, he puts in this very good analysis that the dilution that comes from him winning is horrendous, so you cut back on the dilution, but so what if he leaves? It was a very interesting piece because it did make it pretty stark that it looks like he's going to leave. It's the way I felt it and that would be devastating. I mean, there is no Tesla without Musk. I'm sorry, there isn't. It's just nothing that I want to see. But that I think doesn't matter, although there are still people who are holding out for more cuts than I think are realistic. We did see some forecasts trimmed last week. I know J.P. Morgan and City are now back to September, November. I think we only have a few firms that have no cuts, Jeff Ries-Mazuho, Sock Jen, all first cut in '25. I know. Well, if you go over Friday's number, it was a nightmare for the Bulls and yet it didn't seem to matter in the stock market, matter in the bomb market. The thing I thought was most disconcerting is that there's this whole cohort that's actually the job is growing and it's the cohort in their 20s. It seems like if you make it to a certain level, you're good. If you don't, you're dead. That's something that I think the Fed's going to have to be thinking about. It was actually a really interesting quirk in the data Friday. Some say maybe it's a one off, but has all kinds of interesting political ramifications. If in fact it's actually happening. It makes me feel good. It makes me go back to Larry Fink's incredible letter from BlackRock, which talks about this lost generation. Now, I thought that generation was going to be sitting pretty because baby boom inheritance. In the interim, though, they seem to be losing on the capital side. They're losing on the job, let's say the promotion side, and suddenly I realize we do have two classes. I don't want to generalize too much to what happened with GameStop, but they're just does seem to be this generation that says the man is letting us down or the man is sticking to us. I saw that in the Friday numbers and I was like, "Wow, what happened to the upward mobility of a particular generation?" And maybe Larry Fink's right that there's just tremendous disillusioned. Well, it's not just an American phenomenon. I know you took note of the elections in the European Union yesterday. Macron's going to have these snap holes, French yields sharply hired, all across the continent today. Yeah, I mean, it just seems like that there's a revolt against the current order, and the current order was one which said, it was like a so-called popular front in the 1930s. And it was like, "Hey, listen, we're for everybody." But the right is saying, "Oh, no, you're not. You're just for what we regard as being a period where we just spend a lot of money so that we can handle as many immigrants as possible." And I think that we see that here, we see that there. And I think that the difference is that they have snap elections that can do something about it. Well, we have one every four years. Right. Macron's definitely going to take his chances and try to teach Le Pena lesson, but no guarantees later this one. No, this is somebody who's been on the fringe and is clearly not on the fringe of anything is now a mainstream vote but not a mainstream candidate. It's just all over Europe. There seems to be a sense, "All right, this thing is going too far. Let's pull back." But the pullback is by hard right. I mean, this is not like a right-wing old Republican. No. It's a hard right. No. Now, some did argue this morning that the center right basically held and that the far right is chipping away but at the edges for the most part. Right. Well, I think that that would be the mainstream media's approach to it. It's somewhat in denial. I think they're because I think that no one's used to having a right in Europe that is as close to that we've seen to the 30s, not to the 40s. And I think that we're all kind of like, "Are you kidding?" But no, nobody's kidding. And there's just a note of rage in these elections. That's a little rage. And I think the mainstream media does one-call it rage. Right. All that said, Jim. Not like we've been dealing with political uncertainty for a while. We keep hovering just below all-time highs. I know. And by the way, the bonds of all those countries are awful versus ours. I mean, a lot of the time we hear that we have such a big deficit that our bonds are there for, you know, there's a great deal to be had and it's going higher. I don't know. I mean, I don't want to be in any of those European bonds. But let's address the all-time high issue. I thought it was insane. I mean, I thought that interest rates are going higher and Friday was a divorce of interest rates. That's not been the case. And it looks like today is a kind of a reckoning that we realized maybe we got a little too bullish in stocks versus bonds is what I felt. Right. We'll see. There is some discussion this week about very short-term seasonality, back half of June's usually not too hot, whereas the beginning of July, fresh second half money comes in. Are you kind of prepared for that, that chop? Yeah, I like that. I like that. I, I think we have to rest a little. Now here's what I don't buy into and I did a piece for the club. There were so many, the equivalent of get out now pieces, but they're couch. I mean, these pieces would just say, "Listen, the whole thing's been run by a video," or "The whole thing's run by a small group." I hate that. You know why? Because if it broadens, well, you know what, there's a bad thesis and you sold ahead of the broadening. Who says it won't broaden? Why does it have to narrow? Was it going to go down to Nvidia? And that's it? I mean, no, you can't make that judgement. That's a faulty judgement. Now you, let's say you add in the chaos of GameStop. Well, you know what, that's a, if David were here, you would see Jim, that's a side show. You bring that up. Might as well bring up Southwest area. And I, I don't think anything's a side show. I, I watch the presentation of GameStop. Right. And while the stock was down, how do I know it wasn't down because Ryan Cohen sold a lot of stock. And now he's got his own stock with a lot of money and you want to be in that stock. Do I think that, that, that, I make no judgements about what I saw in that video. Really? No, because I think that if you were a big Reddit follower, what you got is your pal having fun because that's who we know him as, a pal. I'm not part of Reddit, so I don't know him as a pal. I, I was, I didn't want to be judgmental because he made a lot of money, maybe others did too. I, I hadn't thought that. I guess Joe made a great point this morning on Squawk. And that is that, all right, this, this thing had a lot of viewers, right? Yes. 600,000 live stream viewers. Yes. And it got our attention. Right. And we talked about it at noon. But if that happens again and again, don't the markets, nerves get a little deadened? Doesn't it become a sort of an eroding novelty over time? I, I think that it would only be eroding if Ryan Cohen wrecked the stock. Because the followers of this man are people who feel that, that Wall Street establishment must be defeated via GameStop. And we don't have as many shorts as we used to because they're afraid, because they're afraid of the Redditors. Now, I, I was, I respect the Redditors, Wall Street Bets, and I respect them because they got a stock up of a company that I think is not worthless, but really bad. I mean, it's a moribund homage to hard video games. And now I look at that and I say, before I, before I make a judgment on that, I say to myself, you know what, there's a considerable cohort that, that is amused and that it's okay to be amused. We don't think so. We don't think that amusement should play a role in stocks. Well, maybe weren't you, maybe I'm just old, maybe I don't see the fun in stocks. But you're saying the entertainment value is part of the value? Yes. That's, well, that's better than I put it. This commingling of gambling and investing, right? Yes. For lack of a better word. Well, I mean, this changed everything. Robinhood changed everything. Remember, they got it. You know, they made it fun. They made it exciting. They made it. I mean, look, if you go and, and you talk to Jason Robbins, okay, I think Jason Robbins would say, listen, my draft Kings is far more serious than their Robinhood. But Robinhood got away with, look, look at the breakdown of Robinhood. It's half, it's a crypto and options. But they got away with it. Why? Because, like, why shouldn't they? We had Gary Gensler. He didn't say, look, I think Robinhood is fair for the market. I'm saying there's two tiers here. There's the old, which we all think is right because it represents trying to find a really good stock of a really good company. And there's the new, which just says, what the hell do you care about? How good the company is? That's like a meaningless construct. Don't you understand momentum? Don't you understand the way you can take it to the man? And I sit there and I say, I want to judge those people. But who the hell might have judged them? They won on GameStop for a couple of days. And I, I'm reluctant to say to that man who is at the left corner that he's a foe, maybe he's an abstraction, but there are many people who say he's a folk hero and we're losers. We're losers because we make a judgment of a man with a bandana and a beer. Well, I think, importantly, who I like very, very much, is a serious cap. I didn't find this man serious, but that's just a judgment that- It is highly subjective on your part. That just shows that I'm like, who the heck am I? What, I'm an older guy who doesn't understand the news I placed? Well, I'm, I talked to a lot of Redditors this weekend, a lot of people who read him. And everyone I'm to a man or woman said the same thing, which is that, I mean, you gotta, you gotta start reading more, you gotta start understanding more. You represent the old view. And I said, well, what's the new view? Is there like a GameStop? I said, what is it? GameStop stat doesn't matter. It's the old versus the new. That doesn't mean you're going to turn your back on fundamental analysis. Not at all, but I don't want to be as judgmental. I think that they, that the new is not going to make as much money as the old, but I'm not going to say the new doesn't exist or the new is misleading or the new is our fools. The new are not fools. The new are angry, they're upset. I think they lose, but they're angry and upset and I want to acknowledge that they're angry and upset. And the same way I want to acknowledge that the people in their 20s are the loser from Friday's number and the people in their 20s have little hope, a lot, Larry Fink. And this man comes along and he's like, look, at least I'm using it. That's a really sharp point of view, Jim, having an open mind. I just have been bombarded by people who just say, geez, are you just oblivious to what's happened? Yeah, you don't want to be ever truly out of touch. We're dumb money and they're smart money. And I never regarded myself as dumb money, but in the eyes of these people, I'm as stupid as all get up. And you know what? But I'm going to say, like, I went to a really good school, that means God, that makes me really bad. Remember the scene is dumb money where he went to Northwestern? Just don't mention that, that's an elite versus not an elite. My head is spinning and it's the extras. That's a good way to kick off the week, give us a view or something to think about. When we come back, we'll get to Southwest, getting a boost this morning on this reported stake out of LA, take a look at the pre-market, also get to a couple high-profile downgrades of some tech names like AMD and Adobe. Very important. When it squalls the street. Come start back. The most innovative companies are going further with T-Mobile for business. Tractor Supply trusts 5G solutions from T-Mobile. Together, we're connecting over 2,200 stores with 5G business internet, empowering AI so team members can match shoppers with the products they need faster. This is enriching customer experience. This is Tractor Supply with T-Mobile for business. Take your business further at T-Mobile.com/now. What's on the horizon for financial markets? At Pgim, 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 shake tomorrow, today. Pursue your tomorrow with Pgim, a leading global asset manager. Sherry's a Southwest moving higher pre-market following this journal report actually now confirmed that Elliot has taken an air $2 billion stake in the carrier gym. Calls for upgraded leadership, comprehensive business reviews. They want change. Yeah, they do. And there's an excellent deck out. People want to see it calling for a stronger Southwest. When they embraced the idea that there's a lot of upsides to Southwest and that it did well over a long period of time and kept the balance sheet during COVID. But everything else, frankly, is just underperform, underperform, underperform bottom tier of unit costs. A lot of empirical analysis of the operational meltdown and how poorly the company's been running and how it lost Wall Street, that it's losing employees, that it requires change. And I would tell you, Carl, my view on Southwest is that they won't be happy unless wholesale change. This is not minor change. This is not even what I saw with Texas Instruments where they kind of just got the Heisman. I think this is basically a gen-tial group of people and a board that's gen-tial. And I think that Elliot believes everything that everybody has to go. A couple of questions here. There's a look at some longer term charts. I think it's down 45% over five years. How do you separate their operational issues from what Boeing has handed them? That's a great point because I think that they wanted to think that we respect about Southwest is they'd never kick Boeing under the tip. You know, never kick them to the curb. But they did say they were going to hold Boeing accountable. And then they just kind of said, "All right, you know what, there's nothing we can do. We're lovers, not fighters." And I think that Elliot would believe, "Why weren't you fighters?" I mean, you got to come to terms with what's going wrong. And this is like the great Don Budge who is this tremendous tennis player who said, "Listen, when things are good, don't change a thing. When things are bad, be willing to change anything." And they're not willing to change anything. So you've got this set in the set mindset, which is kind of a religious cult. And they come in and I'm sure that Southwest is going to say, "Hey guys, we appreciate the fact that you're a large shareholder. We're not changing anything." So I think this one could get a little, this could get Rokus, okay? I don't want to say ugly. I want to say Rokus. I think the only difficulty is they're, I know I don't want to sound like what I say about Pat Gelsie, but they're very nice. And I have confronted Mr. Jordan many times about how, like, how can you do this? And his response is, "You know you're right, Bob Jordan, you're right, I mean, we haven't delivered. We're going to deliver." And then, according, there's a really bad page, I mean, no, I'm sorry, a page that shows you on page 29 of all the interviews that Bob Jordan has had with us, which many are with me, many with Phil, where he just keeps saying, "Listen, it's strong. I'm very proud. It's strong." And the biggest problem is we had a great 23, Bob Jordan told CNBC, and it was awful. We had a strong first quarter 24. It was awful. And one of the greatest lines is, this is, again, page 29 of "Attack," she won 24. We had a strong first quarter despite the financial results. Is there something else? But this is a stop. We had a strong first quarter. We lost a lot of money, we didn't do well, but that doesn't matter. And so, I think the painful thing here is that you really wish Southwest well, because I think when we had them on, whether it be Gary Kelly, Herb Keller, or Bob Jordan, you really wanted them to get it together, and you could blame Boeing, and they didn't. But that, in the end, doesn't matter. They didn't deliver. This document is filled with a disconnect from reality, which is what they call it, leadership as ignored calls for change, and in transfuse, and the board, they view, I believe, is incredibly lightweight. There are people who have done a good job in life on the board, but maybe they're not the right board. Interesting. You know, it is funny how we always look to them as a highly simplified model, or one type of equipment, a hub and spoke, a corrective force on pricing for the industry at large, right? And those were all positives. Right, but they're saying, listen, a lot of that is out of date. It's obvious that something's not working. The idea that they have been the leader empirically says is false, and it hasn't bolstered profit. So whatever they're doing, I think, Elliott would say, it's not working when it comes to finance, but I think that that quote is so important. When it comes to finance, like, that's not mattering enough, and it matters to shareholders, and I think that what Elliott says is, you know what? I think you run a good airline, but you've got to make money. You've got to make more money than you're doing, and I would totally respect the review. I think they're right. I mean, the company's stock has been awful, and the company's, how it's viewed on Wall Street is awful, how it's viewed on Main Street may be okay, but what matters is, in the end, they've got a good balance sheet, and they've done very poorly, much poorly than every other airline. So it's like, let's say it's a football team, it's like, listen, guys, you used to be in the playoffs every year. You have not even been in the first part of your division, don't you think we need change? I know, and it's not like you can blame the backdrop of travel demand. No, you can, as you mentioned, travel demands is strongest. Yeah, everybody. We'll get Kramer's mad dash count down to the opening bell, get one more look here at the pre-market on this Monday as we get set for a, as we said, high impact, week of trading. Stay with us. Earning your degree online doesn't mean you have to go about it alone. At Capella University, we're here to support you when you're ready. From enrollment counselors who get to know you and your goals, to academic coaches who can help you form a plan to stay on track, we care about your success, and are dedicated to helping you pursue your goals. Going back to school is a big step, but having support at every step of your academic journey can make a big difference. Imagine your future differently at Capella.edu. Let's get Kramer's mad dash as we count down to the bell. More instead of a very thoughtful piece about advanced micro today, and I just read the headline, it's downgrading to equal weight, so hold. We like the narrative, but AI bar remains high. This is a piece which just says, AMD is doing very well. They think they can do 4 billion next year in AI, but they think the streets, it's 6 billion. They've gotten the attention of NVIDIA, and NVIDIA is lowering prices to make it so they can defend their turf. They also talk about how AMD is really good at the inference, which is the end. We need training if we're going to do AI and inference. Inference is the easy part, training the chip to understand things, a harder part, and they're saying they're not up on that. I would think that AMD would say, "Look, we're a viable alternative, give us a break." But I do think that the bar is too high, and that Lisa Sue is doing a remarkable job. This does not give her, I think, a credit to that, but that's okay. I mean, it's time to make the point that it doesn't matter. Lisa Sue is doing great, but Wall Street's got no handle. I don't think the speed of Wall Street expects more, but I think what Wall Street expects is to burn the unfair, which is what you can do. That's a good note. Something to keep in mind as we get the opening belt here at the big board, it's the international Cricket Council and our WS Global live event producer celebrating that Cricket World Cup at the NASDAQ. It is payroll service provider ADP, celebrating 75 years, Jim. As for NVIDIA, we do get the 10 for 1. A lot of revised targets today go to, say, 140 at TD Cowan's, a good example. Yeah. I mean, look, I can just pick today because there's more talk about it. My work on 10 for 1's, which haven't been that many, is that people tend to sell two or three shares because they have suddenly a lot of shares and it is a sell event not a buy event. And I think there's a lot of people feel it's a buy event, that there's new money that comes in because it's not, because there's so much lower in dollar value. That tends to happen later this week. You have to get the people who say, "Wow, this is free money." Now, I know, I mean, my analysis is not simplistic, it is the way it's been. That's why people like to do a three-for-one. I mean, people feel, when you do a three-for, nobody sells one. That's harder to point. It is with one of the three. It is a 10, but the stock was so high. Yeah. So, it's a clearing event. You'll get the people who take the profits and then the stock could begin a march again. David Costa, the Goldman, takes a crack at what splits do for liquidity over the long term. And he argues, I think that he would argue over the longer term it is a positive. Yes, absolutely. Because you don't want, I mean, you're always good from police. That's what all CEOs say. But there is a cohort that's come back to the market of individuals and they don't want to own a fractional share. This whole fractional share thing, which is a canard. It's not what people want. I think in theory, it's what people want, but there's an emotionality to splits that we all want to disagree with. I used to with my friend Herb Greenberg break a pencil and say, "Look, now you have two pencils, big deal." It always worked as it'd be able to show that there's no value created, but it was meaningless. What happens is big psychological plus, it's like, "Wow, I can get in there finally. I couldn't get in there before." Right. Main time Evercore with this remarkable chart or suggestion that NVIDIA could become one day 15% of the S&P. Right now it's about six, let's say. Look, Jensen's got a 20-year view. He's always had the 20-year, if it's 2005, he's in 2025, Jensen's not. I don't want to say he's not one of us, because that is patronizing, and it makes me say, "Oh, I'll eat them." What I would say is that if you look at what can be accomplished, a lot of people I talked about, people ask me about him all the time, and I just say, "Listen, you ain't seen nothing yet," because what you're getting, if you go to the melius Ben writes this piece, which is very intelligent, but just as basically enterprise software, look out. This is the way software is going to be created. Now it's a definite adobe, which reports this week. Adobe does have a terrific sweep, but the sweep's expensive. I'm a big shot through an Orion fan, but that doesn't matter. What does matter is that the melius piece fundamentally says enterprise software was great from 2010 until now, look out. This is the way software is going to be made, because this obviates the need for all that enterprise software, which has been what Wall Street has lived off of, because that's where the IPOs are, that's from the venture capital store, and he's just saying, "Look, look out. Be careful." He does say that especially if the subscription model, which based on C count, it's going to matter more about what your outcomes are. He says, "Look for continued pressure in Workday and Salesforce and Snow, which he doesn't cover." No, and I discussed with Jeff Marks, and I said, "Listen, Salesforce has been a core holding of ours since we basically started the trust, and I respect Ben's work enough to be able to rethink how long it will be. Can Salesforce pivot?" The problem is he's using, again, we've got these people who have cyclical, we have people who just say tactical, and then we have existential, and this is an existential threat, according to Melius, and I think the gentleman would say, "No, it's just the way things should be. I mean, you shouldn't have to have coders. It's codeless. And I remember when I once spoke to it, and I spoke to it. I don't know, coding. I wish I knew. And what Twilio tried to teach me, a lot of good that did, and I feel like that the whole point of it is that you don't need any of these companies, and they're very expensive. Well, at the very least, he would argue, Melius, that is, that it's going to make it easier for a startup to create software with minimal engineering. Absolutely. Yeah, I think that if you blank slate of paper, you wouldn't use them. I also think that the Apropos of what the employment number showed is that nobody really wants to hire, because everyone thinks at least 1% to 3% of their people are not necessary. We just don't know which 1% to 3%. That is the hard part. Jeremy, we got some inclusions to the S&P, CrowdStrike KKR. Holy cow. I mean, so I was with George Kurtz last week. Now, here's something. You know, George Kurtz is a winner, but what's he a winner of? Last year, he won the amounts. I didn't see how he did. He won. He actually won the mons. I mean, I have a picture of him, like, with the trophy. I asked him, I said, "What are you going on?" And he said, "I'm going to the mons." I said, "What's it like?" And he said, "Well, when you win," I said, "No, I know when you win, but what's it like to watch?" No, he won. And he won here, too. CrowdStrike is a remarkable company. I know that we've been partial to Palo Alto, which has done very well for the trust, but CrowdStrike has been a huge, huge winner. KKR, I think there's not enough float to be able to handle without a big move, and it's got a big move. And GoDaddy is a bit of a conundrum. I mean, remember, there's just a black box to it, but I think GoDaddy is a company that's not that well understood on Wall Street. Right. Another being played. Replacing Robert Half, Comerica, and Illumina. You know, Robert Half, I'm eager to find out why that thing keeps going down. Illumina, that's a change of pace. Comerica is the worst bank, is what my feeling. The worst regional, and that's a shame it's a growth area. And Comerica is a once-great company, and I like to think they could be great again. We did get an initiation of AXP out of city, neutral 250, great model, but the bar is high, essentially. I thought that piece was gratuitous. I think that we have a terrific CEO and Squeery, and that was a piece that basically said Squeery can't do it. And I think Squeery can. I continually believe that that stock goes higher. Meanwhile, as we watch consumer gym, I know you saw this upgrade of Walmart out of JP Morgan. It makes a ton of sense. When you roll back the prices on 7,000 different goods, that's the place I want to shop. I think that one of the things that they never talk about, and I wish they would, is how much fun the stores have been. Like, when I mentioned to them, they're on point, and say, "Listen, we offer value gym." It's not about fun. It's about value. And I want to say to them, "Lighten up." Lighten up. What does that mean, Bill? Don't you understand? You made the stores fun? They disagree with my analysis, my rigorous analysis. Best performing doubt component this morning, as they basically argue, they've got the consumer barbell to work with. They do. They've got other profit pillars. They have barely tapped. Yeah. I mean, Walmart.com, there's a lot of upside there. If you went upside, Costco.com, this guy, you know, because Costco is predicated in the idea you have to come to the stores, and Costco's got much more upside. But I, well, Costco and Walmart, they're the winners, TJX and apparel winner. Now, what's winner? Lowest price, everyday lowest price, E-D-L-P, those are the three. I have to tell you, when you go to Walmart, I remember when I used to go to Walmart, there was one, a really good one in Jersey, I would go to office 78, and there was always something they were giving away. It'd be like, wow, look at the price of that Rubbermaid ice chest, you know, and it'd be, they must, they must lose money on that. Well, that's what Costco did. Oh, yeah. Costco loses money on a lot of things. Yes. But Walmart's got unbelievable, I urge people, I've killed them on a Dickies jacket. I mean, that Dickies jet might sit, might kiss him that that's $80, Jack, I got a $0.26, I crushed Walmart. They don't know it, but I crushed them. That year to date gain is almost three times the S&P's return this year. They're so well-run now, and there's, the humility is kind of like, it's daunting because I went in to talk themselves up and they just, I said, how about some reactions from last week? Though, we have lower prices, how many, 7,000, well, how about some excitement? No, but that's not what we're about, Jim, and I'm like, well, that's kind of what I'm about. And they said, well, yeah, but you don't run the largest retailer, we do. So, okay. Sounds good. Helping the consumer today, gas prices, three month low, we got some M&A, more consolidation in Noble Diamond. Yes. There's a deal that actually, that stock did trade above that in 23, but I'm sure that if you're, Diamond, Diamond is a long-suffering one, and that was one that never really, you know, it had strived many, many years ago, but was, this is one where its time has come. Sometimes I think, is this a deal that, because they think that Trump could win? Because I think that every merger, most mergers will be contested between now and the election. That would be the typical nature of the way an agency works when it's threatened by the end of a administration, and so maybe they challenge that. I think it's, look, I thought, I've been waiting for consolidation in the offshore onshore for a long time. Yep. Those companies haven't done that well. SOB stock has really been pressured. Meantime, we got Berkshire adding to Oxy as we got the disclosure on Friday, Jim. Yeah, I guess Warren can't get enough of that. I have to tell you, if you think he's a buyer of that aggressively, I urge you once again to buy the stock of Chubb. Chubb sells at 12 times earnings, it's by far the best insurer, by far. And if you talk to people, two things you hear about in the insurance business, one, Evan Greenberg's the best there is in writing, right, I have no right insurance, that's the key, he's the CEO, and two, it's the cheapest versus its reputation. Reputation being everything when it comes to insurance at 12 times, I would think that a 6.4% position of buffet is nothing versus what he wants to do, but it's certainly a much better company in Oxy when it comes to the balance sheet. Balance it there, superb. Interesting. There were a couple of interesting pieces over the weekend about homeowners just going without home insurance, because it's too expensive or can't get the policy written. By the way, Jim, home-build is four-month low, roughly, at this point. Yeah, they're really reacting, they reacted viciously to Friday, and that's what I thought was like, how could Lenoir be so bad, and yet the rest of the market whistle past that particular Lenoir toll graveyard, and those are very good companies. But yeah, I mean, people feel that the mortgage rates are headed higher, and that these things are hostage to mortgage rates. I would say that as mortgage rates go higher, people just use more cash, and that the stock's a little oblivious to the new buyers, which say, "Listen, toll, your houses are a million, I'll pay 1.1, and I'll bring cash to the table." So I think that I don't want to kill against those stocks, they're run differently from the old days. I'm sure people would say, "This time is different as a killer, Jim, don't do that," but these are very good companies, and they're all amalgamated, and they own the country. We saw an upgrade last week, Jim, of 3M, and today it's an upgrade of Honeywell over UBS. Yes. Okay, so let's talk about that. Honeywell's a position we own for the trust. The 3M, I think there's a lot of value there. I think Mike Roman got rid of the two great legal overhangs, so therefore, you can buy the stock. It's low, multiple, and it never cut its dividend. The Honeywell was—even though we own it for the trust, that guy's been right. It was the worst performer of the major industrials, and it has somewhat caught up. I don't—look, I totally agree with it, that it's time—he doesn't say it's time to buy. He just says basically, "Okay, it's caught up, I want to cover my short." His short's been right. Why do we own it? Well, because we feel that it's too depressed, and that some of the cycles—the short cycles kickin' in. This is a very inexpensive stock versus the rest of the cohort, which has had a big run based on reshoring and the IRA. As for pharma, Lilly, I think, as this looks like an all-time high, and then, of course, Moderna on Squawk today with this Phase 3 combined vaccine result. Right. So, congratulations to Annette Askenazi, you've got a great package from Google, totally deserve it, the great CFO. Look, inlet, Lilly, there's a lot of what I recorded as a, let's say, misleading narrative on Friday that there's a narrow—the FDA said a big discussion today—that there's a narrow approval. I mean, the issue was whether it would be approved or not. I don't care how narrow it is, I think that if you can prove that your parents have it, you have some plaque, you're going to get it. I think that the problem is that if everybody were to get it, you'd break the system, because the system—it's not GOP. This is just—these drugs cost a fortune, and everybody wants to avoid Alzheimer's, so we all kind of wonders a vaccine. It's not going to be a vaccine. It's going to be very targeted and very expensive. But Dave Ricks, I think, is one of the most responsible pharma guys, CEO, I've never put it past him out to figure out a better way to handle things. He will figure it out. And then Bansell, this morning, talking about their vaccine, but his argument was, yeah, there's cohorts where there's higher risk or comorbidities, but if you're not in that group, you might still want it for fear of contracting law and COVID was his argument. Oh, look, I—the conventional wisdom is if you're a certain age, you've got to get them both, and I'd like to just get it once. I got sick from getting them both by just the cavalier nature of, like, hit me again. It was like, I was like, casino, I had an 18, hit me again, okay, but no, Jim, there's like one, two, three, but he hit me again, I toppled, thank him on a Friday, toppled on a Saturday. Missed a day of work would be just horrible. Right. David's back tomorrow. I'm sorry. I'm sorry. You mentioned— I meant to turn this way. You mentioned revolving doors in management. Planet Fitness, a new chief, starts today, I think, Jim. Jeffrey's up to buy as well. Yeah, look. Send move. That's been leaderless for a while. We never—I don't respect companies that don't tell us what happened to a CEO that I had over many times. Ron, no. Yeah, I don't respect. And the reason I don't respect them is that, you know, here's a company. I had—I had Ron, the one—I don't know, eight times, and then he disappears. You know, no, this is not hit, man, I won't give away at the end. This is not one of these situations where that didn't happen, that person didn't exist. No, that person did exist. That was a man who came on the show and he existed. And you can't just erase him as if he's Stalin's assistant going to Vladivostok. The man who existed, he was a person. Don't disappear him. So you want them to complete that sort of— I'm a big believer in dignity. Yeah. No, that's new for me. Just kidding. Well, watch. Yeah, that's—we'll see. Jim, no, I don't—didn't see the reasoning behind the Jeffrey's upgrade, but— No, look, I mean, you know, people want to be in shape, I mean, I don't know. I think that there's—it's GOP-1 versus health and wellness, versus exercise and diet, I'm sorry. I mean, one of the things that GOP is about is like, "Okay, listen, that diet exercise didn't really work," and those who it can work for, Planet Fitness is a nice, inexpensive alternative. I always liked it. That's why I feel the way I do agree, because I always liked it in this gentleman who worked his way up from the front desk. Look, just say what he did, if he did anything, or he didn't do anything, because right now you don't presume the best. Right. I mean, do they not acknowledge that this was the person who came on CBC over— Yeah, we'll see what her introductory commentary is like. Yeah, just have some dignity. Just offer the man some dignity. As we go to break here, Dow's down 50, holding 53, 32 S&P. Watch Bonds. Not a lot of data today, but of course, CPI and the Fed decision on Wednesday, it'll be busy throughout the week as we get PPI Thursday, and you miss on Friday, 10-year, just south of 446. Stay with us. So quarter today, the S&P is up about one and a half percent. Apple quarter today is up almost 14 percent going into today's WWDC. I think fairly hot is how Jim might describe it. Yeah, I don't want to comment a little, it just tends to be not an event that's big. But if it is, it's consequential. I don't want people to say, "Oh, yeah, that's why I went up stupid." We're going to watch it, obviously. The presentation begins at 1 p.m. Eastern, 10 a.m. Pacific. Stop trading with Jim. It's coming up next. It's time for Jim. And stop trading. Congratulations to David and his family and his daughter for graduating in high school. One of the greatest days ever for when they get there, because it's a social that you did it right. They got there. All right, so, Roosevelt is basically about arm holding, saying that this is the setup for the shares that they really like. I totally agree with this. I think arm holding, people want to find out the next Nvidia. Now, there is no next Nvidia. That's foolish. But arm is involved and we'll have the number of arm chips. Remember, they are software. They're not really hardware. The chips are made by elsewhere. But the number of arm chips that are going to be in everything is extraordinary. That is, Nvidia tried to buy them. They're the winner of the CPU side. And I know that Intel will talk about Moore's Law and how they're going to be the winner. And they're not. They're not going to be their arms going to be the winner. And I think Renee Haas is a remarkable CEO. Thank you. Very, very. Just one more reason why semis have been words at this year, Jim. I mean, look, I think that the numbers that for arm could be dramatically hard. Remember, they had a deal and underwriting that was, in retrospect, they gave that money away. But that would not be what Renee cares about. Renee cares about the execution and is thrilled that anybody made a lot of money on his deal. He's very thrilled. And I think, again, another humble man doing great job. Right. Yeah, we've talked about how well priced some of these deals we've seen at the last couple of quarters. Reddit, by the way, I still like very, very much, I think, and not just because of what I said at the time. Reddit has loyal users. And I just respect the people on Reddit. Do I respect Wall Street bets? I respect the people on Reddit. That sounds good. Yeah. How about tonight? Okay. I have Enrico Loris. I think that this AIPC is going to be the next big thing and is not getting enough attention. In part, I think it's not getting attention because PCs have been in such a down cycle and no one wants to touch them. Maybe they should be touching. And by the way, Nvidia is going to be in them. It's not all AMD. Nvidia has big ambitions to be in the PC. Big. So let's not forget that it's an Nvidia trade. You know, it seems like just the other day, you said Best Buy to 90. But it's basically there. Yeah, something blinds, blinds, world blinds, not okay. I'll go with humility. Hey, listen, I was bad once there was a great tactical call. That was a good one. Yeah. But Best Buy worked very well. And a lot of that is because of how great Corey Barry is. She's done a remarkable job. And she's going to be the winner. They have 40% of the AIPCs. People should get on board. I know there's a lot of shorts piling on and I'm not trying to do a short boss. I'm just saying, listen, this one has got the, they have the PCs. Yeah. Yeah. It's weird, though. Jen, that's good work. We'll see you tonight. Thank you. Mad money. Thank you very much. Six p.m. eastern time. When we come back, we'll talk some Apple and Tesla with Bernstein's Tony Saginaki on the heels of his note today. 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/squawkonthestreetdisclaimer. [BLANK_AUDIO]
