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. Investing involves risk, including risk of loss. Zero account fees apply to retail brokerage accounts only. Sell or assessment fee not included. Limited number of ETFs are subject to a transaction-based service via $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. The band is back. Carl Cantonea, Jim Kramer, David Faber together again at post nine of the New York Stock Exchange. Future's pretty steady. S&P coming off its best weeks in April, and that record closed Friday. Big week, Powell on the Hill, CPI, and the start of earnings season. A roadmap begins with the market's record run, helped by five of the MAG 7, hitting all-time highs on Friday. Also ahead, Paramount has reached a deal to merge with Skydance and everything else that goes along with that. And Boeing agrees to plead guilty to a criminal charge stemming from those deadly crashes involving its 737 MAX jets. Let's begin with this busy week for the street, S&P Nasdaq at record highs. But Jim, it's nice to have all three of us here, first time in a few weeks. And it's fine. I just a lot of work for the investing club on Friday. And Friday was one of these days. I have to tell you, I can't recall, maybe in the '90s, maybe even '80s, where you have these stocks, like Meta was up $29. No, it was routed in the closed, Amazon $2.40, it says Google up $4.78, Microsoft up $6.79, Apple up $4.79. I mean, these are very, very big moves. And it tells me, and David, welcome back to you. Where's the sellers? Why are the sellers not lower? Why are the sellers holding out for $20 and getting it, holding for $25 and getting it? What is going on? I mean, I'll come right back at you and ask you, Jim, because you may be in a better position to tell me. It is somewhat, I mean, people will start to make that connection have to. To the '90s, now the question, of course, is it 95? Is it 98? Where are we in this cycle in terms of a new, incredibly seminal, technological event, if you want to call it, and its development? And there are obviously the bulls are arguing very, very early, or if you want to make the real analogy, 95, not 99. Right, well, Mr. Weeks was one. When are Weeks was one? Fabulous interview by Squawk Box, CEO of Corning. We'd recommend people buy Corning two weeks ago. As we said, we think that they could be very much involved in AI. Well, I mean, the numbers are so much better than expected. And I think the difference here is that, remember, Corning is not based in Silicon Valley. Corning is based in Corning, New York, which David, I'm sure you spend a lot of time with, like, I have. And there's, you know, it's Cal Pastures and it's AI? Well, I mean, they both have made. When are Weeks been running that company for a long time? He sure has, hasn't he? Yeah. Since, like, Mr. I hope? I don't know. Don't you mention Corning? Look at that. Up 34% this year. Right. Right. It's a real company. Right? We're going to talk about Larry Elson in a bit, but take a look at it. I mean, it's not just those things. Oracle's a $400 billion company. Why? Same reason. AI. So I don't know. We've got this. This is a proof of concept named Corning because I now, some will say, wait a second, Corning was one of the great performers of the year 2000. Yeah, that's unfair because a lot of the orders were from companies. They were laying fiber everywhere. This is like, we're trying to meet demand, okay? But the companies that needed, are companies like NVIDIA and NVIDIA know we may have two people say today that the new iteration they announced at their conference, Blackwell, they can't meet demand. It's incredible. UBS takes NVIDIA to 150 prior 120, Jim TSM all time high. The socks up every day last week. CSM was struggling in the 140s because people felt that it was one and done. And then look at this run. I know that you could say, well, listen, that's NVIDIA is up 150%. But this is something because this is a foundry company that makes this stuff and everyone had been worried about China and the possibility of some sort of invasion had a discount. I don't think anything's changed to make people feel that China might do something, but the discount is rapidly closing. So one thing we haven't mentioned, Jim, was weaker ISM. ISM services down five on employment to four one. Powell speaks tomorrow and Wednesday. Are we folding in a Fed put on this stuff? If we have a CPI number that's good later this week, then I think we're going to start talking about the three good ones that you have to have in a row. You have to have three good ones before you set the table. Now, I thought Friday's number was extraordinary because the biggest job growth was government. You know, you take out government, which has nothing to do with the economy. You didn't have much job growth at all. No, I mean hospitality, health care and education, I believe, with the other areas that were showed some strength. But generally, the reception to the number was a positive one in the sense of because of the weakening, even though it was a strong number, 206,000 unemployment rate going to 4.1%. Nonetheless, there was some weakness underneath that encouraged those who already believe we will get a cut in September. What's amazing to me is that we still don't see any companies that are going bankrupt. We don't see any companies like I keep saying, "Well, when is writing going to close?" I mean, when are they going to close all the Walgreens? When are they closing all the CVS? Well, you got to start somewhere and they certainly are starting at Walgreens. Yes, they are. But I look at these companies and I think usually at this point in the cycle of a Fed tightening, we would be like thinking about the wall and how many stores would close, the industrials and how many would be in trouble. Instead, I think Forge is breaking out of it. For real estate is the one area. And we've talked endlessly about commercial real estate, not just because of higher rates, but because of a significant change in terms of occupancy trends overall. That's the one area. Right. But we still have to, as much as it's a slow-moving train seemingly, it's one we have to keep an eye on. There are still banks that are certainly under some pressure in terms of their portfolios. Negative piece about key today, which I think does matter. Although upgrades for Schwab and PNC. And PNC, yeah. I know. I mean, look, we're going to have some truth telling at the end of the week. Yeah. It's really crowded week. I think between now and then we're just going to be just making a book on what Powell's going to do. But I come back and I say the end of the week, by the way, when we get the bank earnings just to make. Friday was seminal because we have seen one stock become the great stock of this period. And it's not Tesla, which we can get. That's going to say that. It's not Tesla. It's Apple. Apple. I mean, Apple was bad at 165. It was bad. People told you to sell it. There were more downgrades between 165 and 175. And I can ever recall right before one of the great runs. Yeah. I mean, they say signs of stabilization and phones. Yes. This great B of A note, Jim, on Apple Pay and how ubiquitous it's become. And it's only 1% of revenue. Oh, and when you talk with them, they've got a lot of things in mind for finance. I mean, it wouldn't shock me if they didn't be involved with stocks directly. Maybe even programming. I mean, these guys have, they sit around and they think about what they want to do. And then they want to dominate. I mean, they just like to be last and best. Right. Right about being first. No. And when you have an installed base that they do, you cannot worry about that, I guess. Because ultimately, it's what you decide that makes, that leads the herd. So does it. Right. And what's so exciting is you get this situation where people say, oh, well, everyone wants the enterprise, the enterprise enterprise. And meanwhile, the opening eye says, listen, can we please partner with the greatest consumer product of all time? And I know that our Fred Ben Wright just has another piece about AI laggards and those are connected with Apple. And, you know, I just come back and I say, this is the most missed Apple move except for a fellow who was on this morning, Tony told me, Tony told, you know, he's talking about an eight dollar earnings power making the stock sheet. Tony's hanging out. I know who you're talking about. Yeah. No. I'm aware. I'm aware of who he is. He doesn't like Tesla. Yeah. Yeah. It's been quite a move. I just, I do wonder, yeah, what's going to, what's going to, what's going to change this whole narrative? Are we getting a little frothy? Just listening to you talk about this, you know, what we're, you know, you just have to wonder, well, these companies are great. Or is it going to be years? Is it going to be years that we sit here and keep talking about this? Well, I mean, maybe what happens is somebody, you know, you literally buys this morphic next, you know, maybe they can break into the trillion dollar club. What's the matter? It's your bow. We'll do the little deal. Your bow and crochets. No, it's a, it's a, you know, three billion dollar deal. We'll talk about it in a big premium as it's often. I think it was just in a sweet spot, you know, like, well, I've been with him in a long time, but I know he's got that beat. Oh, yeah. It's like a racehorse in the game, right? Yeah. Let's go. Yeah. Our day. And we got a big deal. It's a deal we haven't heard anything about. Really? At all. It's a new name in M&A. It's called Paramount. Never talked about it. No. I haven't been talking about this at all. We got our deal. As we told you, we would, of course, late last week when the special committee of the board of directors at Paramount started its work, but we knew it would be very, relatively quick. They did work long into the day and into the early evening on West Coast time before they got this press release out yesterday. Let's give you some of the details of a deal that we have talked endlessly about. That is quite complex. First of all, Skydance. Remember, this is what David Ellison runs. This is the future of media. If you listen to the conference call that continues right now, and they're getting quite a nice value there. The owners of Skydance are Redbird, the private equity firm, that, of course, is a partner in the Skydance investor group that's buying Paramount. The Ellison family led by Larry Ellison and KKR. Interestingly, KKR is not an investor in the new transaction, in the additional transaction that follows that valuation. By the way, you value it a $4.75 billion, and so what do you do if you're Paramount? Yes, you're 317 million new shares. So 317 million new shares go to Redbird, Ellison's, KKR. And then you turn around and you're the Skydance investor group. You're not just buying NAI for $2.4 billion. That does include debt. It's about $1.7, $1.75 billion they're paying for the equity. They're also turning around and buying 48 percent of the B shares at $15 a share, at least giving the opportunity to shareholders to sell that to you. That costs you $4.5 billion, then you're putting a billion and a half on the balance sheet as well to help deliver overall the company. The hope is as well, when you add Skydance in, that will help with the delivering a bit. There's no debt on Skydance. What do you end up with? Well, the new owners, and I'll get to them in a moment, they own all the A shares because they're not just tendering, by the way, for the B's at $15, they're also tendering for the other A's, that is that the other A's that aren't owned by NAI at $23, so you basically control the company. You leave out a 30 percent stub of the B shares. You want to participate with these guys and this turnaround that they're going into great detail in. By the way, Kudos to them. The slides are serious. They're good slides? Yeah, they're pretty good. Yeah, good slides. Jim, I think you give them a, I'd be curious to give you, get your mark. But just I don't know, why do I want the B, I mean, I've dealt with this with constellation. Well, Brancie A and B. Because you're a believer in David Ellison, you're a believer in our old boss, Jeff Shells, now the president, as we've been telling you, he would be your believer in Larry Ellison. These are the owners, by the way, as well, of this company. And to turn to that for a moment, just to put it in perspective, there's David Ellison. Jeff Shell, by the way, giving him quite a shout out on the conference call, talking about he is in Shell's opinion the right person at the right time to leave the new media. What did he say? If you went to a lab looking for an entertainment? Exactly. Exactly. This is what you'd come up with, that combination of technology savvy and media savvy, that hybrid going from a table read to being able to code is what he was talking about. It's a name we're going to be hearing a lot more, that is David Ellison. But the other name here, the course that has to be mentioned is Larry Ellison, one of the world's wealthiest individuals, an incredibly competitive 79 year old father of David Ellison. When it comes to the capital that is the new capital that's being put up here, right, you're talking a little over $8 billion, let's call it. My understanding is roughly two billion of that is coming from Redbird. Huge bet there, a huge bet they're making, not one of the giants in private equity. So if this deal doesn't go well for them, they got trouble. Six billion is coming roughly from Larry Ellison or the Ellison family. They have unlimited. Okay. So David, this is linear. And this is sports. One day on the earnings on the Oracle earnings, I think his net worth went up by $14 billion. He's probably worth close to $200 billion. You can't just take the 41% stake in Oracle, he's got so much other stuff out there. But that's your name. That's who now is going to control and own CBS and obviously this entire media company with these plans, Carl, to have a major turnaround that also will see them saving as much as $2 billion in costs, 50% of which they believe they can actually realize within one year of close. I see goals of investment grade by 2026 and the go-shop will come and go. Go-shop 45 days, hard to imagine. Sometimes when a potential buyer sees something in print, they get excited. But the only two other, I mean, I talked about Sony, Apollo, that's not there. You've got to work a deal for NAI that is to the satisfaction of the control shareholder as we know. They've done that here, not without some difficulty. Hard to imagine somebody else comes up who can really do this. Yes, Warner Brothers' discovery would have enormous synergies, it would take a very long time to close them. By the time they closed, half those synergies would be gone. And our parent company, the likelihood is much more that you get some sort of rationalization on the direct consumer businesses that are combined, somehow with others. But any hope that this is connected at all with the new Nvidia video product, where they own a ton of video. And by the way, who knows AI, honestly, better than Safra Katz and Larry Elson, not many. No, not many. And they are talking a lot, Jim, here about cloud, about AI, about the combination of what they can do in terms of the new paramount plan. And I'm just looking through the slides here because I want to make sure they sort of have some of this there. Evaluate TTC investment as well with a focus on profitability and partnerships. Studio in the cloud, they're talking about animation, building studio in the cloud and partnership with Oracle. And of course, utilizing AI tools to enhance creativity while driving production efficiencies. Meanwhile, this thing may not get done until the second half of, you know, first half of next year. It could be a so-called Trump stock. We haven't talked like that on the show. But if you have a different FTC, a different Justice Department, then maybe there's some room. Maybe it moves quicker. Maybe not always hard to say. Or puts them together. They're on both sides of the political divide, I think. David goes one way and his father seems to go a bit of it. Well, at least in terms of their giving, at least in terms of their... But just great reporting, and of course, you killed the bee, you know that. The B was off, and you killed the bee. Why did I kill the bee? Welcome back, David. Why did I kill the bees? Your comments, David. The numbers are the numbers. Oh, the forecast is the forecast. Yes. Doesn't matter. You killed the bee, the bee was off. You started talking? You killed the bee. Well, you're not going to get your 15 bucks for a long time, so you've got to figure out how long it's going to be too close. I think they were in the verge of the 15 until David came roaring back. We'll report these us together. It lives. You're not going to die. Watch it. It's probably down now. It was up 50 cents. I bet you if you put up the bee, it's already down, but you killed the bee. When we come back, we will get to Boeing this morning, agreeing to plead guilty to a criminal fraud charge tied to those fatal 737 MAX crashes. Meantime, watch futures as we come off record highs. We'll get to Disney, Tesla, Love, Lily, Devon, when we come back. At EverNorth Health Services, we believe costs shouldn't get in the way of life-changing care. We're doing everything in our power to make it possible. Behavioral health solutions that also keep your projections at their best, it's possible. Pharmacy benefits that benefit your bottom line, it's possible. Complex specialty care that cares about your ROI, it's possible, because we're already doing it. All while saving businesses billions, that's wonder made possible. Learn more at EverNorth.com/wonder. 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. We're very excited to do a standing mad dash with Jim as we are all finally back together. Say a little applause for us back together. You want to talk a little service now and a downgrade? This is hard to see, David. One of the great performing enterprise software companies all our lives is, well, Service Now since Bill McGundman got it. David, this Guggenheim piece suggests in itself get this, that the general AI monetization is not happening on mass, not likely to materialize this year. They are thinking that you're not going to get the big Gen AI push off from service now. This is worrisome. I'll tell you why. Because the stock has had one of the great comebacks. This was actually a decent quarter. Bill came on. We know that. Right. The software was so bad, almost every enterprise software, never sales force missed the number. And then boom. It's come all the way back and this analyst, John Defucci, really is time to think very well because it's so overextended technically that you can see this thing get hit. Now, what do I think? I think that Bill McDermott is money. He's beaten, beaten, beaten. He's set over and over again that they're actually making money off AI. I'm not going to disagree with him. This analyst had a hole on it. It's been a winner. So I don't know. I mean, yeah, this stocks had a big run right here and a lot of people think it was just multiple expansion. Right. And you know, that's going to be something we're going to be having to talk about a lot of time. A lot. Multiple expansion means paying a little bit more for the same amount of earnings. I saw a piece today about meta. It's like that. Well, service now has been a little like that and I tell you, David, that's the real worry is that suddenly people say, you know what? I'm going to pay more for what the guy paid last week because you know what that's called? The greater fool. Yeah, fear. And as we move into our earnings season, we'll start getting at least some initial answers. Right. And you'll be obviously. It's such a big week. Listen to those conference calls every single night or reading them. Yeah, because it starts. I mean, you know, we went Chachie Petit. You went Chachie Petit. Chachie Petit. I love it. I love it. I think Chachie Petit. I was one at five times. Yeah. It's just so great. You got to get the best practice. We've got an opening bell right ahead for you five minutes from now. You can always catch us anytime and anywhere by listening to and following the flock on the street, opening bell podcast. 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. Boeing agreed to plead guilty to criminal fraud charges connected to the fatal 737 MAX crashes under the deal with the DOJ. The company also agreed to pay about $243 million fine as well as have a third party monitor oversee compliance at Boeing for three years during this probationary period. Still got to get signed off by a court gym. Right. But a lot of implications here. Yeah. Now it always seems that when people at home see the stock up, that's because there's always a more worse case, so to speak, maybe they would be banned from government work. That would be something that would be devastating for them. Maybe they wouldn't be allowed to sell any planes this year. None of those things happen. They have to pay a fine. No one said anything about the merger with Spirit, which I guess can still go through. David, that's a big M&A case that we haven't really talked about because that's bringing back Spirit to Boeing. Right. Well, not cash out links, because it's stock. It's no longer shrink to grow. No, it's not. It's grow to deal with your supply chain issues or your, I don't know what you want to call it. Well, but I remember when they build a airplane the way you want to. I remember when they split that up to be able to totally financial engineer a better quarter, better year. Well, better luck next time. It doesn't sound like you think their defense work is threatened by this would be felon status. Nope. I think that, okay, so what happens in these cases and people should be outraged. What happens is management doesn't have any problem, but you have shareholders have to pay, shareholders are paying for that, isn't that crazy? Yeah. You have to write this down. I know. I'm about to show over pocket. Families wanted a lot more, but we'll see what that means for certainly their executive search in the weeks to come. I mean, I think that, let's get the opening bell here in the CNBC real time exchange of the big board at Smurfett West Rock celebrating its merger and first day of trading over the NASDAQ US Olympic men's soccer, getting ready for their Olympic appearance in Paris later this month. And of course, you can watch the Olympics on NBC and Peacock. Yeah, what's funny. We're doing a piece. Ben Steller and I were tonight for bad money and what we were talking about is two quarters ago, there were, I think what is going on in the Nike popsicle, a lot of it was about the Olympics and how exciting that's going to be, but now David on the verge of NBC Olympics, what happens? The things are so bad they didn't talk about it. Wait, what things are so bad? What is it Nike? They didn't talk about Olympics much at all and that had been, what do you're starting instead of start? Well, you mentioned all the tech names that were, that have been up so much, but you're starting with a name that has been down a lot. And that's a senior growth stock that we used to look to along with one that my travel trust zones, David, I am ready. This is David. Right now he's going to, right between the eyes, Starbucks. What about it? But my travel trust zones. I know it does. Well, go ahead. Say it. Well, my travel trust is calling to ask you, why do we own this, Jim? Thank you. Okay. So I believed that management is going to get it together and I still hold out. Wow. Yeah. Wait, what? Wait. We're not talking, we're talking Starbucks. No, okay. All right. Jim, wait, are you making a turn on Starbucks? Okay. Okay. Okay. Okay. Listen to me. Okay. Listen to me. Okay. Listen to me. Okay. Listen to me. Starbucks. Okay. 40. 90. 90. 90. Big. So, David, big. I'm not talking about here. I'm talking about big. What, what, what is emboldening you to make this kind of a call? Okay. Yeah. I think that a lot of the political turmoil that upset Starbucks may be behind them somewhat. But David, they, that stock has cratered because of a, that everything had been going wrong. I'm betting that something's going to go right. Where's Nike? Everything's going wrong and I can't find it'll go right. Oh, Jordan's. Well, you were, Best Buy was a little around this price where you said it would go to 90 and a dead. Right. They got a product. I'm going to try it again. I'm going to get the new PC. The new PC is a godsend versus this one where the battery burst at it for three hours. Nike and Starbucks both have one, one other thing in common, which is China is very important to them. Okay. And then you, Apple and Tesla, when I think about sort of the four names, Apple, Tesla, Nike, Starbucks. Right. So how important China is to all of their businesses. And don't forget when from a cow. Yes. But I wouldn't say that the problem with Nike, if anyone goes over that conference call, that was a call of despair. It was a call of a company that is not going to be in the playoffs for some time. It was almost as if it wasn't, they were so downbeat about themselves that someone should go and up them and see, get your head out of your one on, son. You mean, pick yourself up, dust yourself off? This is one where, you know, you need a Dallas, Scott are going to jail and hurts to say, will you get? So what's going to change things for John Donahoe and the company? Okay. So that's a great question. Because everything was bad. Right. It's a good source biver. The relaxed fit was bad lifestyle. I think that they have to get a product guy in there that's a real strong product guy. See, Donahoe, his tech guy, kind of a tech guy, like KJ, like Kevin Johnson when he came in at Starbucks. These two companies are so alike that we could do a series. We could do a series on Apple Plus, David, about these two. But I will tell you that right now I don't have any reason for Nike to go up and maybe that's... Well, before you left on your break, Jim, we were worried about Walgreens and General Mills and Levi and Nike, right? We were asking questions about the consumer. The consumer is frugal. The consumer doesn't want an expensive Nike. The consumer doesn't want to pay up for General Mills' pet food. They don't really care about blue buff all of a sudden. The consumer seems to be rebelling at the higher price of Levi. David, all of these speak to the frugal consumer, except for one thing. The money, the frugal consumer is willing to spend on the tech types. On buying their stock or what? No! By the phone. By the phone. By the phone. By the phone. If Chad were to charge me... Well, Axe, I pay. Apple, you're buying a product. Yeah, YouTube. But Meda and Alphabet and Microsoft, they're more enterprises. No, Meda's not really. Small and mediums. Small, small and mediums. Well, businesses are what fuel they're. Small, medium-sized businesses can't. They want to write a check to Meda so badly. You know what? Meda's salesperson's like, "You want to buy that? Just a second." What do you want? How much? Oh, geez. Two billion? No, don't have time. Two billion. Two billion. You're pushing out the millionaires. Is that how much sales people are? Isn't it all automated at this point? It's all AI, right? Isn't it? Well, that's a good point. Yeah. Thank you. To be a salesperson there is to pick up the phone. What a great day. Jim, you mentioned Lily earlier and this purchase of Morphic. What? Almost not 80% premium to the July 5th close. Well, Lily has a drought. I was surprised when Lily was up 5. That was just silly today. But Lily does have an immunological portfolio where they're doing clinical trials on the diseases that these guys are using a pill to control and maybe it's just better to go spend 3.2 billion then. That's not good for Lily. And for Lily. We're talking all sort of colitis in her face to study in Crohn's disease. So these are two phase two studies in all sorts of colitis and one phase two study in Crohn's. That's kind of where Morphic is focused. But Avvy does have a very good product in his face. Okay. Well, maybe. You know what? When Lily comes into something now, I give them the benefit of the doubt. You have to. Because they are alone. They are all alone, Jim. He has gone to Google. As they approach a $900 billion market value, Lily's market cap has twice that of its next competitor. When the stock was at $400 billion, told you it was going to be the first trainer. Jay and Jay is the $354 billion market value. So Jay and Jay has got a talc issue. You know, last I look as a problem that people are losing too much work. Which has had a couple of good years, $322 billion. I mean, these guys, so I don't know, they're buying this thing for a big premium and it gets them into a new area or one that they're already developing. And they get some compounds for phase two. All right. Maybe it'll work. You know, and if it doesn't, does anybody really care? Well, the news is, is that there may be a cancer indication for GLP-1. There's an alcohol, I mean, the last week, the constellation branch reported, and the stock opened down eight. I think a lot of that is just to believe, you know what, twilight of the idols. You can't, I mean, they have to sell this wine spirit's business since whiskey, bourbon. When you have dark liquids, look at one of the worst, how do we get on this? Sorry. We moved to constellation. Well, not constellation energy. No, no, no, no. I had a great week last week. Constellation energy. GLP-1's making you consume less energy. I don't blame them in the control room. It's hard to keep up with you. I'm sitting next to you and I have no idea what you're talking about. They're in there like, which ticker? I don't know. Nuclear power. I gave them. Constellation energy is the largest owner of nuclear power in the country. And it's bad. And basically, they're going to start selling nuclear power plants all the output to one data center. I once went to your Robin Williams, the great legendary Robin Williams. And people would shout at something at him and immediately had a joke, constellation energy. Hey, nuclear power. David, it's back. Yeah. I just went there for you. Breaking news. Largest owner of nuclear power plants in the country. I know. And they will. And yes, the stock is up a lot. It was a danger field. All right. Jim, we mentioned Boeing. Really quick TSA. We said a new record Sunday, more than three million passengers. We didn't mention Southwest naming a board member in this face off with Elliot. Well, I got to tell you, I think that Elliot is very absent date with like everybody to go. Okay. They want everybody to go. And it's kind of ugly. No, it's real ugly. That's just a reputation of everything that these guys are doing. I did. I was hoping David would mention without the proposal of the TSA Disney, which is suddenly got a positive comment, I'm going to save Disney. Why you so many years have saved me, I can barely hear anything in my ear anymore. JP Morgan raises some numbers on Disney after some of these successes at the box office, which we'll talk about in a minute. We do want to get to DC this morning, Emily Wilkins with some breaking news on the president. Morning Emily. Hey, Carl. Yeah. President Biden is out today with a new letter to congressional Democrats in it. He makes the case that he is going to stay in the race. He's going to continue running. He says, look, I wouldn't be running again if I did not absolutely believe that I was the best person to beat Trump in 2024. That's part of the letter. He also says that voters made their decision during the primary who they wanted to vote for and that they have picked him. Of course, this comes as lawmakers return to DC this week. It's the first time that they're actually going to be in town having face to face meetings since that debate at the end of June. And really we're expecting to see a number of lawmakers speak up a little bit more and say, hey, we do have these concerns about President Biden and we're looking to make them public. So clearly, this letter is Biden trying to get ahead of all that and make his case directly to congressional Democrats this morning. It'll be a busy week with the NATO summit in town. Of course, Emily, appreciate that. Emily Wilkins, Jim, overall, the markets, we haven't talked a lot about Powell's appearance tomorrow, Senate banking, but certainly as we get closer to election season, the future of the Fed chairman at least is going to come into view. Yeah, I think people have to understand that Jay Powell is providing over, I think, one of the great fast, tidy cycles and then perhaps soft landing, David has been very reassuring. I mean, everybody's going to say he's been banned for the market. I mean, the guy's been just unbelievable. And it's not necessarily the president who used to tell me on many occasions they didn't care at all about the stock market. Right. Not at all. The president, President Trump, he used to call me and say that his down numbers were good. Yeah. The down numbers. He would call you, wouldn't he? Sometimes. Yeah, he would. Yeah. When he was president, he just called me to tell me he was going to knock my show off at the six o'clock briefings about covid. And then he called me after they were canceled, he congratulated me. You didn't knock me on? I mean, I don't know. Could you please hold for the president of the United States? You betcha. Whoa, Jim, yep, yep, yep, yep, yep, yep, yep, yep, yep, yep, yep, yep. All right. Yeah. Zip it. Service now is down on that downgrade and Paramount is down 1% guys listening to the call early. The bees. It was up big before you started talking. The numbers are the numbers, as I said earlier, but it's not about me saying anything. There are many challenges at this company. By the way, it's going to be sometime till they close the deal. And of course, there are operating and interoperating agreements, but you got to three guys running this company. Right. Paramount. That's going to continue for the foreseeable future. It's like your community. It's not an easy world. Jeff Schell, our old boss on the call, is talking about the linear business. Namely, I'm hearing this a lot lately, you know, CBS is undervalued. There's a lot more there. He said, what, 20? It's going to be a strong business for decades to come. I think we'll be sitting here in 10 years, 20 years talking about a significant amount of viewership on the CBS network. But it's going to become part of the equation as opposed to the driving part of the equation. He also had some interesting things to say about David Ellison. It's a name we're going to start to hear about in the media world because he will become the chairman and CEO of Paramount. Take a listen to Schell, who was, of course, the man who ran NBC Universal for some period of time, has to say as the incoming president of Paramount about his new chairman and CEO. My dance is literally designed almost ideally, you know, for, you know, I'm excited for everybody to see now behind the curtainist's guidance because it's literally designed for Paramount. It's been a long time since a creative executive ran one of the big Hollywood companies. And I think it's really important when creative is the core, working with artists as the core of our business staff, something like David running the business. And actually, if you went into a lab and designed the perfect executive for the next generation Hollywood company, you would literally spit out David Ellison because he not only can go to a table read, but he can go to the next room and code to and this business is heading towards a technology media hybrid and David's perfect to lead it. Technology media hybrid, obviously, will help one would think to have the founder of Oracle as your control shareholder, essentially, along with Redbird. As I pointed out earlier, big takeaways here, 4.75 billion valuation for Skydance. Interesting, by the way, that one of its owners, KKR, is not a part of the New Deal and in fact may sell into the by the purchase that then Skydance Investor Group undertakes with the B shares and then and Sherry selling all of her shares, everything. So Ellis. Everything is a part of that. And then Larry Ellison owns up, ends up probably contributing as much as 6 billion or the Ellison family. He's going to develop programming that needed the data center. Can you think of anybody better than the guy who's building the most data centers? Who's your biggest investor? No. I mean, there is some centers here. This is not all just what's going to happen with a godfather or a Tony Romo, right? It's not about just Tony Romo, is it? Not just about Tony Romo's contract or what else do you know, what else do they have? What do you mean they got started? They got started in college football. They got the NCAA. They got the NCAA. And by the way, nobody is going to question their ability to compete for the end. And it felt right. When they come up many years from now, when you got one of the richest men in the world there, it'll be like, okay, no problem. I know they're good for it. I know they're good for it. What's the problem with that? And by the way, we can produce out Michaels, right, his voice. We can regenerate. We can do anything. Kurt Gaudy. Kurt Gaudy. Yeah. Yeah. And now do you regard a spin when you grew up with one station that had football. Yeah. Meantime, Inside Out 2, now $1.2 billion, that is enough to have JP Morgan raise its numbers on what they call what, positive direction in the creative group over at Disney. I thought that was incredible, especially because the stock seems to have been a bit of a rot, David. You know, this thing has since pelt soul. Perhaps. Have you noticed the trajectory here? Yes, Jim. I have. Well, probably want to comment on it. I don't really have a great deal to share. We'll continue to monitor. Okay. I thought you might have something. Yeah, I got nothing for you. Where are you going? You're going to have probes is my part. CBS. Hey, some people think that the show the traders about somebody on a big, you know, head fund desk. We had the trader, you know, the trader? No, I'm not familiar with that one. Is that AITOR? Or an ADOR? No, it's like one of those movies that you're always in. I don't know why you're in every one of them. You're in like, you know, merger and acquisitions, but then you're in like, you know, dead money and stupid money. And dumb money, I'm in arbitrage. Yeah, he's ready for paramount. Jim, Tesla was up nine days, giving a little bit back today, but up 27% last week. Nice. Lucid with an 8% pop at the open. Well, you know what? I think that Lucid has made, that's the point. Now, are they going to go to Georgia? Not, I don't know, but Tesla is just a lot of people felt this was the, this was like they had him on the ropes, but you don't get Elon Musk on the ropes. He's not a guy who's in the corner. Elon Musk, David, he floats like a butterfly and you know how he stings? Like a bee. There we go. Yeah, he does. Is this about AI? Or is this about cars? It's about, I think what the August 8th self-drive and also because he's back, it's exciting. Maybe he's got, you know, he's not distracted by Delaware, Texas, Inc. Well, okay, I'll accept all those. Well, you know I'm better than I do. I can't say that I know Elon particularly well. I know, but I do know him better than you, perhaps. I know you call him Montoya. I don't get that. What is that? Montoya. Um, let's, you know, Tesla's as we pointed out back to more or less, let's call it flat on the year. It is down a bit in this session. So that's taking it down about 1% for the year. This was a stock down as much as over 30% for the year it's at one point. So the delivery numbers last week seem to encourage people to believe they're going to at least meet if not exceed the 1.8 million vehicles that many analysts have filed a company expected to be delivered in this year. And to your point, both July 23rd when the company has earnings and will get more granularity around those delivery numbers and everything else and August 8th for full self-driving when they have the big meeting telling us about what they're going to do for robots, robot taxis. Right. Those are important things. Now, Musk himself has said any number of times I'm not a car company anymore. If you want just cars forget about it. If you want robots and automation and self-driving and robot taxis and AI, then you want to be in Tesla. Right. Well, look, I think the Tesla's overvalued, but what the two that are really in my craw here, I mean, you have Microsoft at 40 times earnings for future earnings. What was that number? 40 times. Oh, yeah, I know. And you have Amazon selling at 43 times that year at an all-time high. If someone wants to make a claim, well, this in the magnet of December, that those are much higher. I didn't realize Microsoft's multiple had got 40 times in their's release for it. Are you concerned at all by that? No, no, no. Okay. You sure you don't want to think about it? Because it's going on. No. Look, I need tonight. I wrote a piece this weekend and said, look, you know, those are the ones that are the Killy Seal. No one talks about it. No one ever says, well, I'm worried about Amazon, I'm worried about Microsoft because they are machines. All right. Well, I'm worried about GE when it was trading at 45 times earnings at a $60 stock price and a half a billion market, half a trillion market value. You could have done Worldcomy pieces, but he's self-effacing us, and you know, no, I'm bitter. They didn't bring price to our options, did they? Did they? No, I still have stock in it. They reprice management options, but not ours. I have for no, but... I haven't forgotten that. Wait a minute. Listen. One day. Bitter. He's able of what? One day. I'm coming for you. I'm right. As we go to break, watch Bond's Busy Week in macro, of course, Powell's appearance on the Hill this week, CPI Thursday, PPI Friday, 10-year, just south of 4-3. As we got all-time highs for the S&P and the Nasdaq, stay with us. Take a look at some Nasdaq, 100 gainers. You can see what chips are doing today, in fact, of the top five S&Pers, three are chips, super micro, Intel, and NVIDIA falling second to Corning this morning. Meantime dows up 232 as we said, all-time high S&P 5580. Stop trading with gyms next. Time for gym and stop trading. We'll forget this is a huge earnings weekend, it's not just the banks. PepsiCo reports. Now, PepsiCo reports on the 11th, not far from here. And today, Bank of America basically lowers the boom. Just as look, we're lowering our organic growth, sales, we're lowering our earnings estimates. I think that they're not too crazy about Frito-Lay. Now, remember, Frito-Lay isn't right in the crosshairs in GOP, that's one. This is going to be the quarter where we're going to hear people say, "You know what? We don't know about our volumes, but they're not up to snuff, and I think it's going to be the impact. It's finally happening. You're going to get it from the basket that you're going to hear from some of the grocery stores, so it's going to be difficult." And no one wants to admit it, just like, like, on the ground for me. No, it's not cannabis. No, it's not GOP. Well, what is it? We suddenly don't like Jack Daniels. Is this country Jack Daniels? It's a staple. Yeah, we'll get Conagra on the same day. That's going to be very tough, Conagra. Yeah. Very tough. It's the average price, too. All right. Jim, how about tonight? Okay, I'm going to determine whether Nike's going to go up or down, and it's nothing to do with my bad with David Starbucks. I'm just going to tell it as it is. You got Nike on the brain. You got Nike on the brain. You got him. You got him. You got him. I got to know John when he was-- Ebay. --when he was at eBay and then in a relationship. Yeah. Well, let's see if it thrives tonight's peaceful. Oh, boy. Oh, boy. Oh, no. It does not sound good. John is John's good. It's just that there are a lot of things that aren't at the company. That's a lot of fun. All right, tune in, man. Nice. Thank you. Nice. Nice. No, I'm not taking it apart. No, I'm not taking it apart. You're not taking it apart. 70. Not 170. I got 120. I got 120. You'll get 100. The back, I got 95. That's what's going on there. The auctioneer. Betcha. We'll see you at 6, Jim. Mad money, 6 PM Eastern time. Dow is up 200. As the bulls try to hang on to some all-time highs this morning. Stay with us. 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