Carl Quintanilla, Jim Cramer and David Faber led off the show with market reaction to an inflation surprise: The Producer Price Index showing a decline in May on a month-to-month basis. The anchors also discussed Elon Musk's claim that Tesla shareholders are backing his massive 2018 pay package "by wide margins" -- hours ahead of the company's annual meeting. Riding the AI rally: Broadcom shares soared to fresh record highs after posting a Q2 beat and setting a 10-for-1 stock split. Williams-Sonoma announced its own stock-split -- 2-for-1. Also in focus: Nasdaq hits another all-time high, Apple-Microsoft battle for market cap supremacy, Paramount deal update, former President Trump to meet with top CEOs.
Squawk on the Street Disclaimer
electricity a big idea that's inspired countless new ones from powering the light bulb to virtually powering our entire lives 30 years ago State Street launched the Spyder S&P 500 ETF Spy a big idea that inspired the world to invest differently and still does what can you do with spy before investing consider the funds investment objectives risks charges and expenses visit sga.com for a prospectus containing this another information really carefully before investing spies subject to risks similar to those of stocks only TS are subject to risk including possible loss of principle allows distributing distribute. Market moving insight and analysis join Jim Kramer David Faber in me Carl Keaton here on the opening bell hour of CNBC squawk on the street. Good Thursday morning welcome to squawk on the street I'm Carl Keaton here with Jim Kramer David Faber at post 9 of the New York Stock Exchange futures are mixed but off the early lows as we did get this surprise drop in producer prices down to 10 also jobless claims spiked to the highest level since August 10 year drops to four and a quarter that's the lowest in stapler one a roadmap begins with inflation and fed expectations holding great steady projecting just one cut this year and now this surprise on wholesale prices plus of course we are monitoring the big vote on Elon Musk pay package he claims shareholders voted in favor of that what would be around forty six billion dollars right now pay package and Broadcom's big beef the tech giant surging double digits in the pre market you just heard Frank Holland talking about it also announces that 10 for one stock split let's begin with this market reaction to the tamer than expected PPI number Jim that's with claims and CPI three dovish prints in a couple of days we're gonna hear a lot about mortgage rates coming down and what it will mean I think it's actually difficult to figure out because there's just such demand for housing doesn't matter what but obviously mortgage is we more abundant now what I'm focused on is what I think that pal is really saying this is the timmer's rap you know it's not yeah sure we got surprised by the CPI but that doesn't mean anything we have to get surprised repeatedly but I also think that there's another thing going on I think pal is acutely sensitive that America is once everything rolled back to 2019 2020 they're not trying to get rolled back to 2022 now that's hard I mean Walmart would tell you listen we can't get it rolled back that far there's so many issues in this economy to make it some people still feel like that inflation is not beaten it's not gonna be one month Davis I'm one month maybe one year before you really feel like inflation to be all right but do you have to wait no but I don't like any of these things which is well now it's gonna be September because every one of these has been wrong at a certain point I just say you know what these are wrong constantly so I'm not gonna like buy we are how many times in life are we willing to be wrong and say I mean I remember the Eagles we went we went one for six okay and last every single one we said you know what we're gonna win we're gonna win we're gonna go in by the third one I'm like I mean you give me a break I mean how could but in this we allow people to be wrong constantly and we still take them seriously nope no loss sense the sense the pandemic you're right inflation is up 21% so much wages Jim are up 22% right we're gonna roll back wages too well I know because the minimum wage snuck up I don't think we'll do that but I do think that look America's we're an election this year everyone keeps talking about inflation being the reason we may act as if inflation doesn't feel big but that's because I'm gonna say it because we make a lot of money it's big for yourself there well no I knew he'd make light of that what I'm saying is is that we are two countries and if you don't think we're two countries then you really just haven't studied your marks in these just lately oh yeah not the last couple of six percent of the people make more than 100,000 which means that 94% there is no we're a percent paycheck paycheck of course there is no doubt that there is a broad they're right there and we've talked about that we mentioned it yesterday obviously with with that very strong number that sent the markets higher I should say good number for the markets with CPI but we talked about the fact that when you look back in 2019 and how much prices are up for the basics but you pointed to a list of things that are all down they're all the things you buy in a supermarket and those are all the things that are going the way of the Fed there are a lot of things just going the way the Fed because they have to do with the price of grain I mean you know there are say there are variables the price of grain is not and you know that that's not anything the pal controls but the price of grain fell so that left a lot of different things like you've talked to Tyson said look you know I would say geez you guys are really charging lives it no we we just charge whatever the corn prices and I just think that that went the Fed's way we finally got some insurance breaks but I don't think that we're obviously the people in the country that vote in all who are polled for voting all still think this is the biggest issue and it's because even though they're making more they just feel like they're they're faced with things that look like they're more expensive that they buy every week gasoline still more but the main ones at the supermarket no win there win versus last year but that isn't what drives me yeah B of A has a good note today basically asking why things don't feel great even though the macro is okay and earnings are accelerating they point to the jarring nature of coming out of a record low interest rate environment and then you got these multiple shocks of the great financial crisis you've got covid you've got wars he's exhausted and that that in the Savita's view has created this ultra defensive positioning and concentration in secular growth well the secular growth issue we'll talk about bro come it's just unbelievable but there's a really interesting piece that's got a hundred X I've watched these guys I don't know if you read this the new stuff the Goldman has that they're connected with an outfit that does very proprietary analysis and it's very very good very long report but what it's called hundred hundred X I haven't seen them they're really good I had them one got Robert Pace used to be a goal but there's a the chart that gets me it's not stocks brands with more exposure to low income the low income companies that have exposure to low income people just aren't buying KFC they're not going they're not buying the bacon here they're out of reach that this is real there's America as far as I'm concerned that when you see these basic things that went up in price over and over and over again in four years America's sinless we don't have a kind of money we're gonna stay home we're talking about the money for a bacon here right I for bucket chicken right that I like the dark you do it's very good it's kind of ironic that we're talking about the lower cohort and Tesla and the Elon Musk pay vote Tesla's annual meeting is set to begin this afternoon Musk does claim that the preliminary results show shareholders backing the compact as well as the company's plan to incorporate in Texas he says on X quote both Tesla shareholder resolutions are currently passing by wide margins thank you for support here's a look at the vote chart that must concluded in his post Jim yeah point about five percent of the country making more than I was trying to make sense of this chart well that's David then if you can't make sense that chart that I don't know if you should go and air she's that's easiest and excellent wise XY what's the what's the hard is that why thank you I mean David it's just one of those things where you can actually like a Chicago election I mean do you know the vote before it happens listen I'm I'm trying to get confirmation of a number of of obviously that's because why because Musk is out there telling you this is a couple of reasons why Elon sometimes is not always the most trusted narrator and be you can change your vote right up until the meeting begins you can it's not like an election in the traditional sense of political election where you make your you cast your vote and you're done you can change your vote you can pull your bullet so and change it so just want to be certain that that's the case we said yesterday that the index funds were the key they remain the key and there is some reporting out there although I haven't seen it confirmed that you know Vanguard and Blackrock may have gone Tesla and or Musk's way if that's the case then yes so the completely a little doubt a little doubt that they will have prevailed because they were the key as I said yesterday and there was an expectation that they were listening as I said because many thought well they're gonna vote the same way they did it six years ago which was against but maybe that was not the case and again these agencies have reached their peak did what a yeah I assess yeah you're pointing out right that that the proxy advisory firms advised against it right and what influence do they have what I think I think there's they have less influence than they once did but there are still there are still funds out there that that vote with them or even having a charter they vote with the proxy visor isn't it they don't have the resources to spend on those okay that's what I'm getting it's expensive to have those people who say wait a second let's analyze this I'm just trying to I'm looking at some texts here to see maybe the Celtics are gonna win it I don't know what you're talking about well get the final vote later today guys it does look and I'm being told by somebody it does look like both paying Texas were approved but again got to wait in some ways because you know you can pull but it does appear that way they would by the way have to go back to the Delaware Judge and get her to recognize the ratified vote okay but do you think it was in the bag long long before we realize I mean these obvious these big institutions they don't just make up their mind I know I'd love to understand exactly what was behind their thinking or why again you and I've gone through it many times we've talked about this often I mean they had a contract they had something that was already approved by 73% of the shareholders at the time yes it was struck down by a Delaware judge you said it was not his compensation was not arrived up by an independent board but he hit targets that nobody ever thought he would and we've had any number of desperate voices on our air I think it's been interesting listening to those who say no way and others are like of course I wonder with their Delaware I must use a pioneer but I think a lot of people feel there's some road road chancellors there well Katherine McCormick I mean she was she presided over the Twitter trial and then she was the one of course who also decided that that it was essentially unlawful that the the way it was arrived at by the board saying that they were not independent we're incorporating Texas is going to get them out of Delaware law yeah so but that said this is being done under so they need to go back to her under Delaware law the what they're trying to do with their shareholders which you have to give them kudos for that but look look we'll have to wait and see you know what a lot guys I mean real briefly we're talking about what is worth forty six billion dollars now he might have to sell stock to pay the taxes on it at some point he's got a five-year-old but the numbers are to your point about people not being able to afford their basket of chicken oh I know you know Larry Ellis is not worth yesterday I don't know I mean it didn't end up 17 because the stock was not up quite as much as when I was here he's got 1.1 plus billion shares of Oracle the these numbers are I mean we've never seen anything like them the creation of value to such a small group of people in I would say that in say 1905 Russia we saw did we did we you know five rushy approaches this I know this is like number seven on the on the on the on the richest people must obviously is you what probably number two right now but behind our nose as of yesterday Bezos was first oh Bezos are no must I mean the countries that we do not have this many people who this many families that are that were more rich than everybody else ever I mean go back to turn out I mean what JP Morgan was rich and Rockville was rich you know a billion dollars you we we couldn't figure out how to spend a billion dollars I mean maybe we could trust when you can a large lottery and and this would be like earning a lottery every day for six months right yeah and then you look at 130 billion 140 150 billion what are you saying I mean you like saying that we have to no I'm not I'm not in any way in favor of a wealth tax or any of that stuff I just I do all those yellow ones point amazing and she's against a global wealth tax but maybe it is time to look at the effective rate it's on their incomes or at least their wealth it's just I mean what's the matter with that Johnny Carson was the highest taxpayer and they took him all the way up to about 75 because he got a do he had a do he was a W - right you don't want to be a W - you want to even do it like he's more talented than these people he was more talented than any of people make a lot of money right now I'm not he was number one by just marbling at the numbers themselves not necessarily saying that no no okay they found an incredible business sounds like but so much value I mean it gets back maybe to any trust policy maybe you want to what you want to change the name to peasantry and you want to make Q lock and you want to be able to have no I oligarch what are you saying I am all about free markets and capitalism and transparency I'm just saying the numbers are really big that's all they're bigger then sometimes we don't sit here angles next to me we sometimes we just say 46 billion and then we don't even mean you the number is inconceivable okay that kind of wealth all right that's all okay and how about that much money paramount's costing people that's all meantime guys Tesla is gonna charge more for the Model 3 in your own perfect ought to make up for those tariffs but BYD snuck in at the low end of the 70% BYD is the luckiest luckiest state sponsor in any in a world and then finally just as a coda gym Morgan Staling on GM today best OEM performance of the year and he thinks a lot of that maybe all of it is the effect of the buyback well back you know if you compare that to the to the lack of a buyback from the Ford family who seems to just want to clip the dividend there right David Ford's got no if they didn't buy back they would no longer be the cheapest stock in the SP 500 I can't figure out where you are in Ford anymore you're like a reluctant owner you know what I'm a reluctant owners not unlike a state Lord yeah that one too not unlike you were right Boeing then you blame me when you finally got rid of it you're on the cusp of you've been on the cusp of Disney Starbucks EL I'll go everywhere she I left the F both of EL that was a mistake I meant it by ELF but I'm point that's what yeah that's why but David that was your focus you just tracked me I did I did I take all full responsibility for any mistakes he makes my elf sorry guys it was supposed to be all I said CBS that CBS oh no yeah by the way you don't want no neither one of us when we come back a Broadcom riding the AI rally and joins the stock split club that's all the rage take a look at the pre-market here is equities try to bounce a little bit off of that softer than expected PPI stay with us you're a pro you can make a five ton HVAC condenser per like a sleeping kitten weeds cower at your mere presence the only thing cleaner than your client's homes is your reputation so why is a pro like you still stuck in the endless cycle of paperwork scheduling spreadsheets and chasing invoices automate your office and get back to what you love with jobber the all-in-one tool that fits your entire office in your back pocket start your free trial today at jobber calm what's on the horizon for financial markets at PJ it's a question that over 1400 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 PJ a leading global asset manager come is surging in the pre-market on track to open at a record high the chip maker raising revenue guidance posting a quarterly beat CEO Hock Tan says results were quote driven by AI demand and VMware company also announces a 10 for one split following a similar move by NVIDIA gym I had to think back to what Amelia said and Hock we trust yeah and Hocky trust we're going back and forth and that's great now this is one by the way that David select is a huge position for me in the travel trust and thank and I want to thank you David oh you're welcome okay so brook on let's just go over this was really exactly like that we heard from oracle okay this is just the build out the build out now at some point may be at peaks but right now the numbers just keep growing and you know Hock Hock Tan is a tough guy you know what VMware he's making that so that it works nobody a very minimal buyback this member used to do the big buyback he's paying down debt and he's got a very good plan to pay it on that but I just come away from this and I say listen if you've been buying NVIDIA keep buying it's an NVIDIA play it's also you could argue a dip but they'd tell my bottom here yeah I mean Goldman Sachs as we envision secular growth in the AI semiconductor business I eat custom accelerators and high speed networking chips coupled with revenue and cost energy associated with VMware the acquisition of that driving positive revisions to EPS and free cash yeah and look there's so many positive notes in this thing and Hock is a tough guy again but he did call the bottom in servers but he's still getting hurt by the way in in cell phone imagine when that turns because it's great he's getting his cell phone cell phone a big North American client which you did not mention this time would be could be placed in orders obviously I'm talking about apples I'm a lot to mention their name he's not but I do think you said in Q2 we saw bottom in service storage that this thing is gonna exceed a 700 700 billion dollar a hundred billion dollar yeah market value it was below seven right but it's gonna be up right you see 40% what you got to do is just look at the plumbing this is a plumbing story it's a plumbing story it's a wrist and networks Broadcom web it's you could also argue that obviously there's a moment here where where Nvidia is when they question whether someone asked whether Nvidia is going to compete again to them and Hock's is absolutely not VMware's thing it's starting to pay off not big yet but overall all it is is just mirrors everybody else who is providing plumbing to any data center the data center remains you said something at the very top of the show which is really important that people aren't buying anything other than the truly secular closed stories the data center remains number one even as many people don't want it to be anymore because it seems tired it's not B of A takes Broadcom to two thousand that was something did say quote we believe the bottom is in to your point of yes and I do like Ben rights this is just look forget about it study the data center study everything that goes into the data center study who supplies power to the data center study who builds the data center study who owns the data center figure it all out that's all there is to it right there's virtue if there's eaten there's Dover there's what's going in there's broad com there's the power suppliers and that's becoming a huge question mark and consolation energy and yesterday P and how are we going to do that whether we're going to need a resurgence of nuclear power she can your contracts soon between liquefied natural gas companies and data centers it will cause a surge in nuclear power because the power is going to grow 6% I had patty poppy on last night and which is from PC PG&E in San Francisco the amount of well in the northern recovery the amount of power that they need I mean it's the one of the great growth stories of our time and those things take 70 years to build and I anybody really wants to know Hock does put on a clinic Hock tan CEO for Roy Com symbol AVGO from the old AVGO puts on a clinic about what's growing here and get out of the way anyone who's shorted video I sent them a notice for their funeral like a thousand times and I don't know I mean maybe it's their vampires we had Kramer's mad dashing a moment countdown to the opening bell take one more look here at the pre-market on this Thursday as we got some other stuff on deck including a long bond auction fed speak resumes talk about it in a minute earning your degree online doesn't mean you have to go about it alone a Capelli 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 dot e d u let's squeeze in a mad dash before we get an opening bell in a minute and a half Kimberly Clark if you think things are slow if you think that inflation is getting more under control if you like what the Fed said the second day so does me then you might be interested in this incredibly good upgrade by Bank of America this is a sell to a buy at up for Kimberly Clark Brian Spillane he was right to not like the stock for a long time it is now playing catch up it's taking share we're all closer going down but Michael's shoe my hat on my shoe my hat on the show and I thought he was incredibly impressed about this next level plan yeah you've gotten rid of a lot of the underperformers and this is one of the safer stocks out there you got a 3 3 in a field it if it's taking share and Proctor's taking share to it's not taking a different Proctor you kind of have a good story and I just wanted to sell to people yes I would buy some now and if it came off I buy some a little bit lower because some people would say well listen just bite in the last few days but this is sell to a buy so you know it's gonna have real impact okay very cool piece let's get the opening bell here to CNBC real time exchange with a big board it is a seal of realty trust at the NASDAQ it's pro-athlete community as Jim we got above 5400 yesterday the 600 point milestone so far this year yeah I you know And again Frank's wife they have everybody isn't too narrow it's narrow but as David said you started getting companies that are 700 800 billion you know a hundred billion - I mean David when you add 100 billion a day on your stock it doesn't matter narrow broad it starts losing significance it's just these are the stocks that are in control of the market I mean Broadcom it is up $200 to them and that you know temp warrants lit people like that but the business is better than expected and I just sit there and say you know until this market broadens out to to include Jay Jill and Wendy's I mean I don't know what am I supposed to do until it broadens out until I start seeing major movements in Starbucks I mean I don't know what I'm supposed to do here forget the broad now the companies that aren't doing stocks aren't doing well or companies aren't doing well if the macros going the feds way why wouldn't it broaden out I mean be of a today like the pain trade will be cyclical well I think because that the reason why it doesn't broaden out is because each day there's something that happens to another group that's very negative like we're still trying to figure what the heck happened to JP Morgan okay well we have pricing for Medicaid that's different in different states people are looking at for the drug business and IRA for the drug business a lot of a lot of sectors are challenged David and text not challenged but a lot of you point out I mean yesterday we were trying to figure out JP Morgan because it was down while the rest of the of the big cap large cap banks were it's a half it's a half a trillion so I look to them as being the what and then to your other point there was weakness and there continues to be some weakness in the very early going here in pharma right but I suppose it's a wait till pharma again J&J say again am I supposed to wait till pharma turns as part of a broadening look you need health care you need finance to turn in order to be able to have a broadening I can't call it's helping me run to my sectors if you own Lily you're still incredibly happy this year I'm just saying that like you can't wait for the sectors that aren't participating to start participating in order to like the market that that is an old-fashioned way to look at things before we be got this have have not where the haves have a huge percentage of the market yeah I mean you know we may think that it's not right that Nvidia that this rally has so much of Nvidia in it but I get analysis this I just said listen wouldn't be hard to get this thing to five trillion five trillion and give me a quick on that analysis no well it was actually a sense of how people felt that Apple would never get the three trillion that it's just one of these things where you got to get over the idea that we're necessarily constrained by these trillion-dollar marks well now you're you're sort of alluding to whatever course said last week is that it's possible they think Nvidia could get to 15% of the S&P yeah I mean look it's doubling of its current percentage I've Adobe tonight there are a lot of people who feel that the contest is not Canva versus Adobe not the lower end versus Adobe they feel that it's if you get a full suite of Nvidia products why do you need it why do you need Salesforce why do you need Workday and I want to look I think Adobe is just the absolute gold standard I think this stuff is unbelievable but I'm just giving you the the rap which is that if Nvidia is really worth all those companies you add them all up you're gonna get to a level that comes to another trillion Steve Eismann on Squawk today talking about whether hardware eats software in a sense I thought that was a great analysis that enterprise software has had a run since 2010 and now this is my been my rap you know I've been an anti enterprise software you have you have yes I've been listening yeah yeah I have yeah well this and you've been talking about the challenges that has it's like a carl's point this idea that now hardware is going to well is going to supplant it in Sun of course you should say did you listen at all to GTC Jim were because they have a lot of software right at Nvidia yeah well they do training the training software is really but you always hear it's like there's this moment I'm more than the chips right it's like yes there's this moment and when Ellison just says else how much is he worth again 140 billion okay so he knows more than we do where he just says look here's here's the deal we do training meaning they don't do inference because inference is considered to be a commodity now but training is no commodity because if it was a commodity AMD software they don't have the great training facility right now that Nvidia has look Nvidia I don't know what to say where are the sellers how about that where the cells I mean it's split car you and he used split this week everybody all with the week of the split is always not great it's always not great maybe at some point there's real competition I mean it could happen it usually does although and I think about it and it's like you know well Apple's still Apple Microsoft under Nadella interesting journal piece dominance in terms of how they've you know reinvented themselves yet again not just about about a but you do think it's alphabet has been around now as a dominant provider and meta and Amazon yeah not much has changed people worry about meta and Temu and she and yeah a little bit yeah I know that's a little bit it's about it one way that they're not ever to say there's something to say on TV you see Apple has leapfrogged Microsoft here we go again by the way best two days for Apple in 15 years Jim if you strip out code good talking to Tim after the Tim Cook after the worldwide developers conferences I did I was just kind of we were both marveling like we were I was going over some of the research notes which was just saying and the press notes it was like wow it's ho hum and I asked you know is it frustrating no I mean because they don't read that stuff they just try to figure out what the consumer wants very novel approach but again I keep coming back to the analysts who covered they they cover they tend to view it as being a static company and if you have a cycle a new cycle and it takes like the 2012 cycle buy it and if it doesn't then don't and that's that don't that's that's the trade don't trade and I hate that and as a comment of their on their influence this notion that they will pay Chad GPT in distribution where just the presence on the phone is enough of a cop I mean people don't understand that when you can have a hundred companies to buy a lot of stuff in the analysts and Wall Street would love it but there's this group of people called the world and the world and there's also like the right tried to get them to do China the United States and are a W rest of the world because I just you know rest of world is a lot of people it is in the countries they always list all these countries and then you grew them and they all have 200 they all have 200 million people and yeah I'm up they're like much bigger than China right but we don't care because all we care about is three cities in China likely where they sell luck because of that doesn't even have to actually compensate them other than saying we're giving you the opportunity to be in front of all of these people by the way Apple charges everybody else for being on the app store an awful lot of money to be in front of people so maybe they're getting a good deal I know the far fewer apps be charted member the service revenue categories in China are much lower they don't have as many categories because they still make money they don't have things to choose from there right well it's just a lot of communist dictatorship kind of not unlike what you were calling for to beginning the show when you were talking about Ellison and I was not in any way shape or form talking about that please don't do it you're more trusting I'm trying to pin you down any of those things you're the one who goes home every night and reads marks and angles all right I'm new man yeah angles is angles holds on take you back to your roots about the people as a sack of potatoes or hasn't tree land it's kind of like talking about I don't know JB Sim plot set set to be simple I know it's a way in western land western I can go on and on about angles angles is good marks in angles is great brother speaking of China Jim big piece in the times 16 cities in China now have companies testing driverless on public roads I if you've been missed about any country the IEA is a serious organization international energy and they're saying it things to be for fossil I just look at that number I'm I just extrapolate that number I said what's happening is China's going to electric and that will be the marginal buyer of gasoline and then oil that's it so you you're a buyer of the bar that he's going to buy the car he was trying to push back this morning oh mr. Copper good I'll give him some throw him some pennies referring to that projection that by what 2030 to band is going to start to fall dramatically for oil worldwide because I like that not just EVs and I don't like the super cycle copper you can't go super cycle that is that's fracking sand and cold don't ever say super cycle ever phone fracking what I wait look I love Ben Ben righteous he is using the S word when it comes to the phone but I rebel at the S word because I couldn't carry this stuff about the copper super cycle this immediately copper went down immediately the S word meaning super s word not the S I'm just making sure people understand what you're saying well I'm just saying that when you when you pronounce something really long-term it just doesn't you have to be very careful because it gets people too so that's what you don't want from the large caps to some small caps Jim we were talking consumer Dave and busters down 10 that's gonna be the lows on the year as comps go negative for Q1 I mean it that's like one of the least values ever right I remember putting I don't know maybe what $25 with the quarters in to try to get the chlorine the claw you know it would be like yeah the claw I always think a Toy Story actually yeah right I mean like that's for 25 cents you do it a thousand but it adds up Jim and you never get it yeah and that's it you know after a while people the new world does not want to pay 25 cents to try to win a troll doll and not even be able to pick it up you know cuz like then you'll go like he's never been to Dave and busters in the storm like my dad I was there there's one is very loved him like there's one extra pure pure filled up yeah I used to go with my dad I mean to clear you're too old guys you know what do we like wait what a place to go to Dave and busters with your dad well he's just walking distance really not sure where to go after that well I mean if you want to stick with leisure this Disney agreement Jim with Florida the notion of investing a billion over the next never ending a crash although you know I'm trying to see if oh by the way but testing 100 once again yes well yeah it's been it hasn't it's been it's been marking time just he's marking time David marking time for what what's it waiting for by the way theme parks they have not pushed they I got gave you know a less than stellar forecast I remember at that I think it was an investment conversation and I mean that and they never said that they didn't mean it you didn't get you Johnson normalization like that you Johnson but you know I'm always a solid CFO this thing has been playing off of my god that's just that is just ever that's K2 more dangerous than ever the normalization content definitely scared people that was again about attendance and at the parks thank you they need to have a theme park where there's no theme parks so they can just take share guys let me quickly go to Paramount because we're taking a look at that just a little bit interesting the stocks down five percent now really didn't give up much ground yesterday after the retreat late Tuesday when we reported of course the Sherry redstone the controlling shareholders rejection of a deal they've been working on for many many months let me just yeah a couple of things to update and you know are there other potential buyers that would involve anything like giving a significant consideration at premium to the b-holders know we'll tell you that remember Sony an Apollo that indicated interest in a whole company deal and never really came through they are still I'm told hanging around the hoop but much more for a NAI potential deal in other words if there was a real bid made for national amusements other than the one obviously made by Skydance and Redbird would Sony try with Apollo to potentially participate or do something there or see an opening maybe and then would there be some sort of a way to infuse some cash under the balance sheet perhaps maybe do it through a convertible preferred although it's not clear to me and I'm not quite sure it's clear to them but did want to share that so because otherwise Jim you're talking about a company that has three people running it right now right has challenges obviously for its all this linear cable networks just signed a new carriage agreement with Charter that we don't really have details on but we cannot imagine is particularly strong has Comcast coming up for a renegotiation after that has a leverage ratio that I think may even exceed that of Warner Brothers discovery doesn't have the scale it needs continue to lose money in in direct to consumer with Paramount Plus I mean you know talking about saving half a billion dollars somehow I don't I don't know the numbers turn that up as you said I mean it just and they just don't add up so if they go this route come the fall come the end of the year we may be focused more even more so on the balance sheet we'll see meantime speaking of Paramount the so-called Paramount consent decree for years kept studios from owning theaters but now Sony Alamo about having a lot of chatter right well going not not going after a streaming platform but actual theaters maybe that the doctrine will the doctrine of for any trust is completely been stood on his head by cannon Alamo is tiny they feel like there's an opportunity to mark it in the actual theater for you know that live experience is somehow plays into it they've done some other experience of people's mother experiment with this silver wear and stuff and I'm trying to watch and that that's the lobby spirit a lot of experience is not when you kill the person next even if it's a close roller if you ever been to a theater with the people eating and stuff yeah but then I'd rather go to a 92 inch screen I call you kind of like my own popcorn for dollar eight I did kind of like the eating a little bit that's you like the L move no I've never been to one I say forget the L it was the one on the east side where they fed you yeah I'm a fan of the theater experience you are kind of like people though you're right yeah well you put it like that yeah that's pretty much the defining thing for me guys test the shares up still hanging there up 6% it does appear you know we'll wait and see the final tally if you do take a look at those charts from Musk if they got to the that number of shares it's approaching what 1.4 bill I think then you have to if the chart is correct then you have to believe yeah grab those and then they have to believe that they got Vanguard and Blackrock because the map wouldn't work otherwise and if they got them then they clearly are going to win on comp and potentially as well win on reincorporation remember different different needs on both you needed to have whatever was cast they needed to be more votes in favor of the comp plan than against for Texas you just need 50 point a percent of the outstanding so there it is see how it's approaching 1.4 you don't get to that number without right without Vanguard Blackrock do you think is really interesting that they chose to go that way you know I know this that's proved but the Vanguard has really well with Blackrock has unbelievable people and it comes to these issues I mean do you think it gets all the way all the way to Larry Fink well you know what I continually here is Larry allows the corporate governance people to do very very that he'd be everybody thinks oh it's just Larry but no I get the opposite I have heard otherwise I've heard the person who did it this was several years ago the level of rigor that they approach it with I said I felt to myself if I would hire them if I were like please Larry let me borrow your people like in other words I'm that's a service yeah that Blackrock through offers that's how great they're now I have heard I have heard it really and he let them do their thing so it'd be great service to them to get the background here on their thinking in terms of why they reversed from what it was six years ago no I look at muscular means someone where you just say okay the Wall Street Journal puts out a piece that basically says he does many things that are unethical and it just doesn't matter it just there's only another one other person in the country that it seems like whatever happens them doesn't matter who is meeting with the GOP right now in fact Jake Sherman a punch ball saying that the House GOP members are singing him happy birthday because his birthday is to a lot of talk about how he's going to peel off some corporate support Jim especially for companies where you you can't get hired as a convicted felon even if you think the charges were jammed up it's sub-optimal situation there but but Larry Cudlow my old pal from Cudlow and Kramer's down there and I I think Larry's a very serious economist and he's still with him in this go-around David we want to find out who's with him and who's not in this go-around we don't spend a lot of time talking about him with DJT I feel like what value added we have actually looked at DJT well listen you know he hasn't taken office yet Jim the election hasn't actually occurred so I think we tend to look at who's going to be involved in positions of right I was significant after you say I'm doing some presumptive you know during that interim period you know when I see you know what he's thinking so one guy's it he wants to stop LNG in 2028 pause how about that Bitcoin thing yesterday I couldn't put that out in the USA Bitcoin what does that mean I don't know it means Nevada I guess is where is that where they mind the Bitcoin in Nevada text your tips it provides Texas is Bitcoin mining country Texas what do you left the hills of Texas you can get I see Bitcoin everywhere and remember Texas has gets more power from wind these days I know that's just where Texas might have been a lot in Texas but Trump's not in favor of wind what was you worry about the answer to talk about the windows in the birds there are a lot of your real estate maybe if you're this one year 41 apparently the cats kill a lot of birds a lot of birds that's it I've had enough crazy cats out there just wandering birds the billionaires and cats there's it the guys saw your solid you should run for office that's sold for billionaires really love them just say the numbers the numbers as we go to break interesting split here between the Dow and the SVP again as the info tech sector does hit a record high does watch bonds as we said 10 year did get to four and a quarter four two four and we'll look for the 30-year auction at one o'clock stay with us Jim which I'm at tonight okay we have Adobe and Adobe's very incredibly important the stock has been just a huge underperformer here and then Gene Drossos a singer which has been an outperformer but I've got to tell you when you look at Johnson's stock you'll say wow what happened and that's because he's under pricing pressure on the low end he's got a really good product that I was playing with last night full Express when I asked about that I think that's a nice competitor he is still the gold standard I don't know why people want to give up one up for people very concerned that why do we need Adobe if we have Jensen mom and it's really not that simple we need Adobe because Adobe is the Lamborghini of design and it's a great democratizer you can't get that with a video can't clearly making a stand-on at least that part of software Jim can't I happen to love Adobe I think it's an unbelievably good product all that product the suites are really top-end but some people feel got too expensive Jim we'll see it tonight yeah mad money six p.m. Eastern time when we come back we're going to continue to monitor the Elon Musk pay package vote with the market split here dows down 240 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 forward slash squawk on the street disclaimer imagine earning a degree that prepares you with real skills for the real world Capelli 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]
