What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. Market moving insight and analysis join Jim Kramer. David Faber and me, Carl Cantonea on the opening bell hour of CNBC Squawk on the street. Good Thursday morning, welcome to Squawk on the street. I'm Carl Cantonea with Jim Kramer at Post Night of the New York Stock Exchange. David Faber has the morning off. Futures are getting challenged by a trio of poorly received earnings. Micron, Levi's and Walgreens all down 5-20% pre-market, of course Nike tonight. A roadmap begins with the chips under pressure, Micron does fail to top the revenue forecast, despite executives expressing optimism about AI. Walgreens plunges ahead of the open, slashing profit guidance and what it calls a "challenging consumer environment." But then the shares of Amazon climbing again after becoming only the 5th U.S. company to cross the $2 trillion market cap. Let's begin, though, with Micron not getting that AI boost in the pre-market, the memory chip maker among the biggest laggards on the S&P revenue guidance over shadows a quarterly beat. But last night on the call, Sanjay Marocha did express some optimism about AI demand. We expect continued price increases throughout calendar 2024, despite only steady near-term demand in PCs and smartphones. As we look ahead to 2025, demand for AI PCs and AI smartphones and continued growth of AI in the data center create a favorable setup that gives us confidence that we can deliver a substantial revenue record in fiscal 2025. Jim, you're going to get a chance to talk to him tonight. Yeah, okay, so do people know Sanjay? I mean, I need all the headlines and Christine, we had a good piece. Christine Lee's always solid, he's been around for a long time. There's a way to be able to look at what Sanjay talks about. And I've gone over with many calls with Sanjay and I'm glad I have him tonight. And it's always like Sanjay, why didn't she give bigger guidance? And it's always like, Jim, that's not who I am. And then it's always like, yeah, but you see, he's going to hurt the stock. And then he's going to say, I don't do it for the stock. I do it to be able to make it so what I think we can be. I don't want to meet people on. I don't want to create aggressive expectations. That's what this quarter was. You buy the stock, I mean, it was down 10 at one point. So maybe a chance to buy it down 10. But I think that there is some benefit to age. It's hard to find other than my daughter's letter X tweet that I just put up. Sanjay is a person who has a style. And we have lots of coaches who have styles. I've seen coaches go into, I've seen Annie Reed say, listen, I don't know. We're just going to be up there. There we go. It's that's, of course, a real live picture. And the reincarnation, we were back there that year. But they, well, I don't know why people don't understand who Sanjay is and what he does. This was typical Sanjay. I mean, do you know that I want that in the last call, two calls ago, I went out with something really positive and he had someone ring me in. And I didn't change my view because I didn't want to get ahead of the story. But that's him. Have me reigned in because he just, Jim, come on. I mean, I'm doing the best I can and you've created an unreasonable expectation. So I, look, I love the guy after a minute. I just think he's one of the best executives in the country. And he's done a lot of things. The only thing that strange is that he's got this New York facilities building. And apparently there's a problem with bats. Bats, you know, bats. Not baseball bats, but like, you know. Yes. I don't remember reading about that in the chips. Yeah, no, we're focused on the bats issue. But I just really want people to understand that this stock has moved up a great deal. Yes. And that this is very typical. The actual, if you go back to '94, you usually get a two-year run in that view. And this is '94. So I'm really talking about, I'm talking about 30 years of being very involved with the stock. And you get a two-year move. You don't get, you don't get a move since October. So now again, that's the benefit of age. I remember the '94 decline. It was one of the most brutal zebra. And it's single and major decline. When you have a major advance, it does not last for recorders. So people should understand the history rather than just shoot from the hip. But they don't because they're young. True. Goldman today does reiterate a buy. The JP Morgan desk not feeling any panic around these results. Perfect. The bear arguments, though, do kind of center around the CapEx guide for fiscal '25, which was heavy. Well, I mean, look, he's still you. Then he immediately says, listen, we can't meet demand. So what's he supposed to do? Is he supposed to say we can't meet demand, so we're not going to meet demand? I think we can't meet demand, so we want to meet demand. Now, these guys have all the younger people who follow it are all used to the idea that as soon as you increase your supply, you make more machines. And by the way, if you really want to profit off that, just go buy LAMR search. Here's my LAMR, LRCS. Just go do it. I don't even give it in. Well, a lot of the CapEx is just in construction. Exactly. Well, they have to. Now, some of them, remember, a lot of it is being provided by Secretary Armando. Thank you. But I want to just emphasize that he has no choice. The thing that people don't seem to realize is that he's getting more positive on Telco and getting more positive on PC. Why they don't focus on that? Because those have been so horrendous for so long. Nobody gives it in. Nobody gives a darn. I'm sorry. I don't mean to be-- I get afraid. It worked for Red Butler. I think you're OK. You know what? My parents once said, "Don't listen to the last line of this." I do feel strongly that this is just a quintessential Sanjay. Yeah. And so those who are troubled by it should read between the lines and recognize Alah Broadcom and Hocktan, Alah Cory Barry at Best Buy, that we're going to get really good PC numbers. And that these have been a drag forever. That's interesting. We're going to talk some retail in a minute. Really quick. Just to put these charts in perspective, Sami's versus the S&P for six months of the year, best in history. Well, you know, best in history is really amazing. Because you're dealing with periods like '95, '97, where you had Intel with every different iteration. That's incredible. And you also, by the way, you have amazing numbers from Lamb and KLA. You would sink once again. If their numbers were really great, then that would be flooding the zone. And therefore, there are too many chips. But inventories have been, has finally worked off. I remember in October, I used to be a son to use Jim, inventories. And I'm saying, no, inventories. This is what you, when you speak to this man, he is a person. I'm just a person who says, there's a lot of automatons who are CEOs. Well, they're automatons. This man is not an automaton. That, on that point, we did have the Nvidia meeting yesterday, where Jensen Wong talked about literally trillions and trillions of heavy industry that are going to get automated and robotics one piece of it. Take a listen. The next wave of AI is set to automate the 50 trillion dollars in heavy industries. Soon, robotics factories will orchestrate robots, that build robots, that build products, that are robotic. We developed Omniverse, a revolutionary virtual world simulation platform, where the physical and digital world converge for developers to create robotic systems. The saying about chatbots anymore, Jim. No, no, no, I didn't. We're supposed to say anything important, it's the media. It never, they meant millions of these meetings that never said anything. Okay, so what does Jensen say? The biggest total addressable market in the world is building factories. What you're trying to do is you build a factory, it's a digital twin. See what it looks like, so you don't waste a lot, sometimes up to 30 percent waste. The Germans have embraced it, the South Koreans have embraced it very aggressively. The United States? Not much, and I think that's a shame. We're not, if you're going to build one of these gigantic cargo ships, okay, very large crew, whatever, that one that takes container ship, it is so much easier to do it, to build it into digital twin, and then move it to the other. I mean, one of the reasons I was not, I mean, the Apple call did not mention this, because I thought they should have, because digital twins can be done for autos. There's a lot of, they want to work the Omniverse with Apple. I know that Jensen said once, that hasn't happened yet. Omniverse, by the way, with VisionPro. Right. And it could happen, I know that I asked him about it, and it didn't happen. There are, I mean, Lowe's is using it, but using VisionPro. But I just think this is a really important point, because it's too abstract for people. Everyone understands if we have robots, and they walk around, and they bring you a cup of coffee. But how about if you have a plant that you know is going to cost a fortune, and in a set like Mercedes does this? And instead of building the plant, and then start making the changes while you're doing it, think about if anyone here has ever had to do a change for a kitchen that they're doing, and they realize, wow, that design's not right, that change. If those are where the real costs come in, you're doing a bathroom. Oh, that's not right. You're remodeling your house. Yeah, right. Well, if you're building or remodeling, particularly if you're building the changes, I remember when speaking to Admiral Rickover's pieces, when they were, Rickover, when they were building nuclear submarines in the country, the biggest problem is the architectural changes. Like you're doing it, and it's like, no, we can't do that. No, we can't do that. Oh, geez, that was a mistake. That's eliminated when you use Jensen Wong and the Omniverse. It's just eliminated. Why the Koreans have adopted it, and the Germans have, and we have it. I have no idea. These are obviously big things. We're going to talk more about it once. 40 train was the number we used with me. Yeah, and just 50 last year. Yes, it was up. We're going to talk more about an Apple call out of Bernstein today. But first, let's get to Walgreens. Down in the pre-market, a drug store chain does post a quarterly miss, cuts the guide, announces more store closures. Tim Wentworth says the company continues to face a difficult operating environment, including persistent pressures on the U.S. consumer gym. They say 75% of stores account for 100% of profitability. There is room to cut. Yeah, they got a close 2,000 stores. They got to figure out getting out of Village Med. But I tell you, I was disappointed here. Why? Because I think Tim Wentworth is an amazing investor. He's a fantastic manager, and he couldn't get his arms around this. Now, he came in in October, so maybe you have to wait until October. Full year, but the Tim Wentworth that I know is someone who's more aggressive. So this problem's got to be even bigger than he thought when I met with him in January. This is an existential problem. Now, you look at this morning about what Amgen's doing. About Xi and Ntemu coming in hard against them. Well, Amazon's been coming in hard against these guys. I left our house being duplicated by Amazon. Of course, you can order it in the morning and have it at your doorstep, versus going to a Walgreens and have to wait for a person to open the kit. That's a suboptimal thing. This whole process of Gillette being in maximum prison, and you got to open it and say you got to give your gun up or something. You know, it's just really, no, I'm joking with gun, but I just find that this was depressing, because I think Tim is so good. He's done so much good in the healthcare industry. This may be beyond, I mean, this may be right at a close point black. The shrink and the security element, physical retail is bad, but it might be not that much better even if they were fine. The Amazon threat is that acute. Okay, so here's what Tim has to do, and I thought he would do it. He has to shrink the footprint of the actual store. He has to get out of the 2000s, don't work. He has to make it to the front of the store is no longer, you know, cheeses. There's like a huge cheeses aisle. And then you go by GLP1. I mean, are you kidding me? He's got to make the front, all the stuff that Amazon's crushing him tiny. He has to make the stores tiny, and he has to make pharmacy. By the way, pharma was good. Amazon is still not been able to win in pharma, because you like to do that in person. So he has to go and get every pharmacist from one right in closes. I'm sorry, if let's be a little more gente open. And then he can get the pharmacist. He can make it so that the pharmacist are open 24/7, get rid of the front of the store other than a couple of aisles. And that's my plan for him, and it will be used. Meantime Amazon, we mentioned the $2 trillion market cap. A lot of chatter today about key resistance being broken. I have asked over and over again, come on, man. Money if you're going to bust, Timmy would see it. Remember, Timmy would see it a huge advertising. Yeah. And one of the reasons some people like Amazon, I'm not furious. I happen to love Amazon. Anybody who has it, there's 140 million people love Amazon. But one of the things that Timmy and she in have done is that when you order them from Timmy directly, they don't give you a date of shipment. But Jesse does, and that's been their secret weapon. And I think they realize, well, hold it, wait a second, if we can offer low cost price and deliver it the same day, then she in will no longer dominate. They won't, they do dominate. Can you, do you think if Amazon is able to hold 190, what does that say about the consumer in the second half? Well, I think that Amazon, we do have prime coming up. Amazon is the secret weapon, not of this stock market, not Nvidia, not Microsoft. Because Amazon, they haven't even figured out yet how to do the best chat. They will. I mean, they have, they have Claude, but they don't really own it. I am just so impressed. They can own sports if they wanted to. They can own retail, there is no vertical. They want to own healthcare. They do want to own pharma. Their precision in how they do things is remarkable. The way they manage the finances is incredible. We do not, we used to give them credit a lot. I think that the mystique of Jesse is, he's just not like Bezos. Bezos is like front was front center. Jesse doesn't want, he doesn't want the attention on him. He really doesn't. I called a joke to him, and unlike Jensen, he laughed. I said, listen, you got to, you send my weapon package every day. You're like, how much do you like her? And he thought he laughed versus Jensen. You said, oh, that's pretty funny. Humorous. Jesse is funny. He's understated. Like many of the people of Amazon, he's just great. Huh, that seems to be a running theme with you, Jim. Names you like. You mentioned Micron and Marotra's style. You mentioned Amazon and Jesse's style. Oh, wait, wait, wait. When you see, wait, when you see the great Jensen, and he hugs you and says, thank you for, you know, for recommending my stock in 2015, '16, '17, you put a lot of people in it. And I was even speaking to one of our fantastic producers early this morning who probably doesn't want me to mention your name because it's her mom. But you know, when you have, she can't, we can't buy it. When you name it, Jensen really liked that I named my dog, NVIDIA, because it showed a level commitment. But what really happened is that, well, you're in Yellowstone National Park, and someone comes up to you and says, thank you for naming your dog NVIDIA. You realize maybe it had an impact on people's lives, and that's what he has said to me. Now, I don't want to be too reverential. What I'm saying is that Jensen, again, he's a chef, he's an architect, he is a very kind man. He uses terms like nice. I mean, remember when you used nice after your, like your mom used nice and said, don't ever use that, and your father would say, don't ever use that word. That makes you look unprofessional. Well, I'd like to be as unprofessional as Jensen. Yes, speaking of pics, you do have a new pic in the club today. Yes, I do, and I don't want to mention it. A lot of the people who I joined the club have been saying over and over again, could you please have a new, young, modern name? I mean, I'm tired of Lily. Well, you're tired of Lily. Be my guest if you're tired, I'm tired of NVIDIA. All right, I don't want Amazon anymore. Well, be my guest by the Microsoft, large position, but the fact is that we have a name that people don't know. That's what people are asking for, 12 o'clock today. You're going to tell members at noon Eastern. Yes, and I hope that everybody listens. Thank you for mentioning Carl, because everybody knows I've been drinking that. I love the old A and P8 o'clock coffee. It does sound like you put some homework into this one. Well, the NCHF marks, please. Let's really give credit for credit still. I look forward to that at noon. Meantime, take a look at the pre-market. We'll get to a bunch of the names in retail. We mentioned Walgreens, but there is Levi and Burke and McKesson and Nike tonight. Hubbard. RH, a bunch of other names as futures remain in the red. Stay with us. Support for this program is provided by Chevron. Demand for energy is projected to continue rising in the future. To help keep up, Chevron is increasing their US oil and gas production, and they're innovating to help do it responsibly across their operations, including their Gulf of Mexico facilities, which are some of the world's lowest carbon intensity operations, helping supply energy that's affordable, reliable, and ever cleaner. That's energy and progress. Learn more at chevron.com/meetingdemand. My dad works in B2B marketing. He came by my school for career day and said he was a big row as man. Then he told everyone how much he loved calculating his return on ad spend. My friends still laughing at me to this day. Not everyone gets B2B, but with LinkedIn, you'll be able to reach people who do. Get $100 credit on your next ad campaign. Go to linkedin.com/results to claim your credit. That's linkedin.com/results. Terms and conditions apply. Linkedin, the place to be to be. "Cramers Mad Dash, watching the stress test from last night." Yeah, they really were pretty much neutral. US bank work, JP Morgan, says they may have to raise equity. I'm not sure about that, but that will be the one that will be under pressure. By the way, this is one credit card. Now, I know some people were saying that Wells Fargo, which is owned by McCrusty, also has a credit card problem. I don't believe that is true. And as a matter of fact, I think that Charlie Sharps, the guy who's going to buy the most knockback. So let's not be confused. This is the one that I think may have to do some capital raise. I don't know how we'll do it, but remember, it's not very nicely this year. And so the main point I want to make is that the stress tests were a yawner. Some people were very worried that they would have major impact and they did not. Maybe the bigger news is Jeffery's quarter last night, capital markets revenue up 24? Look, I think that people have to recognize that there's a lot of belief that the second half is going to be good. We have a couple of notes that are talking about how there's going to be major changes. Now, there's a debate tonight. There is one candidate who is so pro anything that can merge. I mean, you could just walk down the street and someone can merge with you. And then there's another candidate, President Biden, who's FTC and Justice Department, are so opposed to mergers that it's a little bit staggering. So understand that we could use some banks that will merge. Morgan Stanley talks about a return to M&A. We're not allowed to merge banks right now in this country. Everybody has too much except for the little guys. Yeah, I think that changes if if Trump wins president. Goldman down to Morgan Stanley does add it to the financials finest list. Give me a break. I mean, look, go ahead and sell it. All right, go ahead. Make my day, right? You want to be lucky? You think you're lucky? Go sell, go on. You got to add the punk. We'll get the opening ballot about five minutes. Don't forget, you can catch us anytime anywhere. Just listen to and follow the squawk on the street opening bell podcast. My dad works in B2B marketing. He came by my school for career day and said he was a big row as man. Then he told everyone how much he loved calculating his return on ad spend. My friends still laughing me to this day. Not everyone gets B2B. But with LinkedIn, you'll be able to reach people who do. Get $100 credit on your next ad campaign. Go to linkedin.com/results to claim your credit. That's linkedin.com/results. Terms and conditions apply. Linkedin, the place to be, to be. He shares the Levi Strauss taking a hit in the pre-market. The company has weaker than expected quarterly sales, maintains the full year guidance. Jim, although DTC up 11, some people will say the quarter is not as bad as it seems. I wonder whether these folks aren't going to go the way of Ralph Lauren, which got out of Club Monaco. D.M. size chaps, which was the version that you could get at Coles, where Michelle was before this. I want to say that if you sell this stock down to 19, that's just foolish. If they get rid of doctors, which is the problem? Michelle Goss did talk specifically about DTC. Take a quick listen. DTC business is just on fire. I mean, we delivered another double digit quarter. We were up 11%, driven off of nine consecutive quarters of strong comp growth. Meantime, gross margin of 60 is close to an all-time high. Right. There was a lot to like here. I'm very surprised that things are down. If they're going to continue to minimize wholesome, which you've been like, I don't know, Macy's, let's use that. Coles, then I think that they'll do, oh, that's really cool. I mean, again, down four, that guy's selling down four, so he, because he thinks it's going to be down five. I mean, you can't even the balance sheets good. Michelle's doing a terrific job. They could get rid of doctors in a heartbeat. And the next thing you know, you've got a great direct-to-consumer play over the most popular brand in a time when even Beyonce recognizes, yes, it's time to put on your Levi's. That was the Bloomberg headline today was, the street mistook a denim rebound for a Levi's turnaround. And that's wrong. They're very much involved with a denim turn. I do think that this is one you look back and say, what were people doing selling it down four? It just doesn't make sense. I mean, I'm like, I hate to intervene with the market. The market's supposed to be always right, but they ought to do a little more work. And recognizing the doctors is not necessarily glued to that company. We'll talk about implications for Nike in a bit, I imagine, after we get this bell out of the way. Yeah, you know, I think Nike is a big quarter. Maybe he has a better guidance. Let's get the opening bell here in the CNBC real-time exchange. The big board, it's Brinder today, celebrating Pride Month. We're going to talk to CEO George Harrison later this morning, our money workers at the NASDAQ, its online comics platform, Web2, celebrating an IPO today, Jim. 15 million priced to 21, top of the range. Dave, though, we need them. And yes, definitely, by the way. We should be talking about the ICO series. And we're going to see some of it. It's just going to be some of it. And if we can get the M&A, then we really don't understand why you should own the banks here. M&A has been an absolute, really absolute, probably the worst I've ever seen. IPO's absent. Can you imagine if we start getting those? What these banks can do? So let's don't give up one of the banks. And the stress test, look. There are times when I really felt that there would be immediate analysis saying, let's go buy. I think that, again, I believe in Charlie Sharp. I think Wells Fargo's doing incredibly well. It's 11 times earnings. Those of us who remember when it was the Buffett bag, it never traded in a discount like this. So it's not as bad as it used to be. Yeah, we mentioned the tests. We mentioned Jeffries. We didn't mention the NYCB, one for three reverse. Yeah. You know, look, I think, I don't know. I mean, I do think that there's a lot of opinion that you should know in this group. By the way, Jeffries add a high. Yeah. Now, Rich Handler of my known-- I met Rich Handler. He doesn't remember me when he was 11, when his dad was staying when a cop, when his late dad, who was so amazing, was my accountant. And I just think that he learned with the best. He's done the best. Quick friend of David, and I wish David-- Where did you think, Dave? One day he'll be back, I think. Really, Jim? The really always gets me, right? Really? Meantime, Jim. We'll watch to see whether or not tech leads today. We mentioned this no dot of Bernstein on Apple, where Tony Sagunaki takes a look at services once again, and what it means for margins over the longer term. Oh, god bless him. He's my favorite Apple analyst. He went from your lease to first. Absolutely, because I am the first. Either I could be both mercurial and arbitrary. That's one of the things I get, because I sit here. Now, let's just go over being facetious, but the fact is, is that services is going to pass everything. It will be number two, but the margins are great, so it's really in my eyes, the secret sauce. By the way, Tim Cook, when you talked about services and you say, I once said to him that, "Hey, maybe it's a raised, or raised-able model." He said, "We're a tech company." Which meant, Jim, I know you want to go with the consumer product, good, but that's not who we are. We make the best technology, and we care about privacy, and if people buys, buy our services, fantastic. And that's Tim's view, and I like it. The top down names of the moment. Apple, Amazon, Salesforce. Well, Salesforce, there's a Mark Benef has a tweet today. Yeah, you said you told him to come on the show. Yeah, he'll be there, I don't know. That makes, I mean, he should come one. But I don't know why it's not coming on, but that doesn't necessarily mean that he's saying, "Listen, just go buy, build my thermit and service now." He's not doing that. But I do like what Mark's up to. I thought that it was interesting that Elon Musk immediately retweeted that he likes what Mark is up to. So, I mean, I hope he doesn't know that I like Mark. Tesla's been in the news, so we get deliveries next week. You saw the SpaceX valuation on this tender? Oh my, I mean, forget how much he lost on letter X. You make it up in this? Shares selling at 112 in a tender, values SpaceX at 210? Don't cry for me, SpaceX. I mean, this thing's incredible. By the way, it's an existential threat to everybody who has a download. Because if you put up, say, 25,000 satellites, then we're everything's lightning fast. And so he's the guy you have to worry about if you're in anything media. Except for Disney, because now we've learned, holy cow, we've got to chop-- Two days in a row. It's experiential. Forget that today we got to rebound in parks. See me, look, I think that the problem with Disney is that the view that it is cruise ships and parks has been lost in the shuffle of Woke. The cruises are not Woke, I understand. They're fun. And I don't mean any, I'm not judging Woke. I'm just saying that they get rid of that rubric and start talking about experiential and the new Johnson will have an amazing story to tell. >> Yeah, yesterday it was a different note, but today it's UBS talking about, they're only like, what, 10%? I think of the cruise business? >> Yeah, well, they're going to double the size of their fleet. And we look at Carnival ever since. The stock is stock, I understand that. There are a lot of people who don't believe. There are a lot of people who say, really, is the minus seven median number for linear. Look, linear is awful. I mean, honestly, you could close linear because you have all these things that used to be these great loss leaders so that you could watch your cop firehote hospital chain story. But you know what, if I'm going to do that work, that model work for 30 years, it doesn't work anymore. Look, I'm in, I think at this point, I really care. I just want to tell the truth. >> I think that's people, I think that's not a surprise. >> That's what I did. >> See, okay, at this point in my career, if I can't tell the truth, then what the hell am I doing? >> Right, no, I think that people understand the cable model was a beautiful model. >> It was a great model. >> Kind of shelf life. >> Because you got to watch anything about a fire. Anyway, you're like, Chicago arson, you know, Chicago matches. It didn't matter. Why was it always in Chicago, for heaven's sake, because of the funny hats? >> Middle of the country, Dick Wolf. >> Right, right. That's, you know, I like that. Dick Wolf made a little summit stuff there there. >> What do you make of this, L. Michael's AI? I don't like Avatar, I guess, is what we're going to call it. >> I was listening to William Shire recently. He died about 40 years ago. There is a sense that what's happening with AI, this is the first time that you realize that AI is commercialized, because a lot of us like L. Michael's voice. >> Yeah. >> I had a lot of, I mean, Amazon, I idolize L. So to get more out, it's great, even if it's not really L. Because what do we know? >> Have a pub cost. Let's hear a little pub cost. >> I'm sure they can do that the same with Bob as well. >> Well, Bob. >> Yeah, we'll see to the degree to which Olympics is generally, it's big news for media and big news for Nike. >> It really, yes. Oh, Nike, Nike does not have this quarter. There's just too many variables, and there were that piece today about the left out running. I mean, anybody who reads shoe dog recognizes that their hallmark was running. And it was Steve, the great Steve Prefontaine, and those of us who were like pretty good at track, we always had stopped pre-shirts on, and pre-was the pre to Nike being great. It was a great running shoe. So it was disciplined, you read that article about how they've left their core. We do need to see the China numbers. Anything China is bad. >> And shoe dog, Phil Knight talks about why he chose China. His answer is always two billion feet. >> Oh, yeah, I know two billion feet. >> Yeah. >> And that is, I had him one. They hate him when I come one, but I had him one for man money. And I gave him two segments, right? I've given Tim Cook two segments and Phil Knight two segments. I've attended those Nike pretty well. And I just think that, and Mark Parker knows that. >> Yes. >> I think that shoe dog is people who want to know about business much. >> It's one of the great, one of the best CEO memoirs I think I've ever read. >> Ever. >> Speaking of retail, Jim, Gary Friedman completing a $10 million share purchase. >> These come back. I'm begging him to come on the show. >> That's up about five for a CEO who's been vocal about the industry challenges. >> The last quarter was one of those quarters where, I mean, I always send him an email saying, "Please come on. My wife is your biggest client. You know, do me a favor." But Gary was abject that he made some mistakes, but the future is now. He used the pop-up cost, so we have to destroy it first in order to save it. And people feel what he was really saying is we're in the destruction mode. That's not true after I see this buy. Once I realize that he's buying the stock, then $10 million is a real commitment. Then I say to myself, this, he is not, and by the way, got good price, $2.16. He is not saying we have to destroy it to save him. He told him about Pablo and the idea of reinvention. It is in great conference call. The New York Times piece I like too. But people are feeling, you know what? I've had it. The British operation is somewhere I can't get. And he's doing, he's like having a party in Spain, so his voice is shot. Have some respect. Have some respect for what this man is doing, and maybe think he has a vision, because $10 million, he has 25% of the company. Yeah, yeah. I mean, if it were really bad, he would be doing one of those 1,000 share buys, and saying, "See, I love it." Well, it kind of ties to what we got out of that depot upgrade yesterday from D.A. Davidson, talking about being on the cusp of a lower rate environment. Right, now there, what I really obviously, what you want to see is Ted Decker buy a little stock. That would really change things. I think the Ted is remarkable. By the way, Marvin Ellison had a good quarter at Lowe's. I mean, come on, guys. And I think that we always forget that there were real weather issues. There were real weather issues that hurt them and that hurt the spring-selling season. People don't want to acknowledge that. That's a mistake. Checking on Mike Rundjim. Kind of keeping pace with the pre-market losses, but as you pointed out earlier, off of the morning lows. Look, I mean, I want people to listen to Sanjay and road trip tonight, and you'll recognize that Sanjay doesn't do what the rest of the people do. He does not guide up, he does not get people excited, because that's not his game. That's just not his game. He doesn't, look, if you want to hear the opposite of his game, then go and move the stock, but go listen to Joshua Langston. What he did is... Some carnival call. Yeah, I mean, it was like, the call was like this. Everything you ever knew about us is wrong. We are so much better than everything. We are better than this. We are better than that. We are better than that. We have any questions. I don't mind that. It moved the stock dramatically, but Sanjay is the opposite. And remember, he had someone rein me in. And when I speak to him, he just stops him, but I'm looking at the historical. And I try to explain to him, I said Sanjay, the historical. Remember the '94 to 2002 run? Remember the 2002 run to 2013 run? These are periods where you get this two-year-out performance. They usually don't want it when you lecture them about this. Right, right. But I don't care. Jim, we only have a handful of earnings to look at this week. Micron Levi's Walgreens, not good today. But FedEx, is it really given a lot back from yesterday? No, well, that's because one of the things... By the way, that was accomplished. Yeah. Holy cow. And when you speak to Raj, let's speak this really clear. Raj is about halfway there. Halfway in terms of taking out the question. Actually, Europe, Europe is turning. You can get that from Amazon, too. Europe DTC is turning. Europe e-commerce is turning. He is dramatically reducing costs. This drive, I've said it's overdrive and thought that was funny. But like Sanjay thinks I'm not funny, and Jensen doesn't think I'm funny. It's all the timing. But yes, it is. As he was just timing. But I have to tell you that in reference to Fred Smith, what he did was win. The mode is so high. Now, he can cut back costs and went going over the planes. Just a notion of retiring the 757s, that they have that ability to do that and the optionality of freight, which by the way, they don't want me to emphasize. They felt that the call was too emphasized, that they put that in because it was a very quick period where they were not talking about selling freight, and then suddenly they're talking about selling freight. Remember, the freight that it's valued at six times, it would be valued at 13 out. I think they're one of the things that Raj is doing is saying, okay, wherever I can sell something at the top, I will do it. I do feel that they feel that UPS sold Coyote at the bottom of their logistics business. But I think that FedEx is, let's put it in the category of not done yet. Interesting. Jim, big week for consumer packaged goods. We had General Mills yesterday. Really, for the first time now, talking about volume over price. Today, we get this, I think it's a nice note on Coke, which is close to a two-year high. Okay, so let's figure this out. What does General Mills have that Coke doesn't have? Well, the answer is things that get hurt by GOP. Now, by the way, no one, no one will admit that GOP has played any role. But Coca-Cola does not have snacks, and snacks other than yogurt, which General Mills has, but it's only 7% of their pesky. This is what you were saying yesterday, the spread between Coke Pepsi? Yes, yes. And I really want people to understand that it's GOP that's one is starting to really move things. And by the way, who else is not affected by GOP that's one? The spice business. There's no weight put on by mustard, no weight put on by spices. So I'm not by hot sauce. Some McCormick survived. Some McCormick's up four, and I wish they would be a little more vocal, because Mr. Foley is doing a terrific job. But he is another person who I think is given to Lachie and I purpley. How about that? Yeah, there's no GOP. That's there's no GOP, and that's the difference. And General Mills also raised price, raised price. Speaking of that, how about this hymns and hers? Well, there's a chatter about the, I don't know, is it lack of quality of their supply chain? That is put out by a newspaper chain, a media that also takes positions. So without verifying that, I don't have to pass on that. Yeah, shares are down, obviously. But it's at a lot, I mean, it's a pretty, it's an important story. I just don't, I can't verify. I know you've been on the hunt for stories. X-Mag 7 that are compelling, like a FedEx. EMR does get a catalyst call by today out of Deutsche. Yeah, I screwed up on EMR. I sold it too soon. I apologize to the company. I really, they missed two quarters. Mr. Carson by missed two quarters, and I got discouraged. But that is, it was a very positive note. They've got nice accelerating growth. And the flip side, the Illinois tool works as a sell. I always think that's a dangerous sell because management is very, very good. But I do think that Emerson is a lot better than Illinois tool works. Elsewhere in industrials, IP, this M&H app are cooling off in a hurry. You also, Jim, have Boeing. Now the NTSB sanctioning the company for disclosing non-public information on the Max 9 door bolt. The, that stock won't go up until they stop building planes. I mean, there's so many buys, how many is it up yet? There's someone who's down there. We're going to find out that someone has accumulated a level of position that is just, that is Gary Freeman-like. So this stock does not, 178. There's a guy who says 178, 10 million shares, 170. I know this guy, I just can't get his name. But that guy does not let the stock come down. And by the way, I am not kidding. I do think that it is hard to get worse Boeing, but it will. I thought by the way that IP, I don't understand IP easily. Take the money and run guys. But Suzano terminates talks, apparently they didn't. The company wouldn't engage even at their best offer. Yeah, and at Thailand, my father used to rep their stuff. And international papers and insular company, I thought it was less than, I thought it was not as insular. As far as the macro, Jim, today, interesting claims down two straight weeks, but continuing claims three year high. Yeah, the moving average, we have some, Jennifer and Cole, does some fantastic work. I know that she's not on TV, but her moving average showed me well. You know what, it's going the, it's going the Fed's way. It's going the Fed's way. I'm not worried. So you, but you do it, well, not too much, you hope. I mean, in terms of the. No, we can't have too much, we're going to buy as McCormick. Yeah, we are back below four, three here. It didn't really happen right after the prince. I just think that people don't reel. And we had auction, look, here's what's going on. And I said, I'm going to say this at the meeting today. We're just trying to figure out what the price, price turning moldable of this market should be. Maybe the more, maybe it should be expanding because of the Fed cuts that it, sometime within the next year, the moldable should expand. And stop sweating the program about what day, what week, and when these Fed officials come on, I'm not saying muted. Make it lower. Just turn the volume down. Yeah, just like a dimmer switch. Right. Yeah, I mean, I just think that there are a couple of ads that I mute. And when these people come on, look, what am I going to do? They have to come on. Why? For no reason whatsoever. Exactly. I mean, if I were Jay Powell, I would say, okay, no more Hollywood squares. We're done with the Hollywood squares game. George Govell. Yeah, right, done with that. Yeah, George Govell, we love the lower, lower left corner. And we're done with the, and I would just say to Powell, listen, the blackout, it's now been extended to every day of the year. And go do some work for him, spend some time, do a little, how about homework? Remember homework? Do some homework. Don't come on over that. Oh, no, they do not. I do, at least, I'm going to say I do three or four times more homework than any one of those guys. They let it come and see my house at 3 a.m. See what they're doing. They're probably sleeping. As we go to break, speaking of all this, watch bonds today. You did see yields come in just to touch as we got final Q1 GDP and claims and durables. We'll get pending homes in a minute. And after a pretty good five year yesterday, Jim, we'll get a seven year today. Maybe people want the seven. That's not my favorite piece. Stay with us. It's time for Jim and Stop Trek. Keep going. I have to start getting to know this name, Dutch Bros. Okay. Anyone who knows the Bros knows there's a coffee, it's unbelievable. I like the annihilator. I've been up for three days when I have it. It's just one. Keeps you up for three days. It's like sterno. Here's what people have to know. This stock ever since they finished the venture cap, the private equities. Ever since they finished this stock, it's finally starting to get its mojo. Christine Barone is terrific. I've been trying to get one in New York for the life. I mean, they don't have them here. They're going to take their time. This is what I used to think of Starbucks. Which can't really manage to get past the moving averages, Jim. No. And my chapter just unfortunately owns it. And I say unfortunately because it's unfortunate. I wish we owned Dutch Bros. This is a remarkable chain. I was so afraid of the insider selling, but it's finished. And anyone who has gone up to go into a kiosk or whatever and see the pleasant people and they make a lot of money average unifallium, it's a remarkable chain. And once we get it here, I think you're going to say, look out. These guys have service. They have it right. My daughter lived in Oregon for a while. So I was one of the, I was, that's where I became. Got it on the ground floor, so to speak. Yeah. And you know, if I had an annihilator right now, car, I'll see Monday. I think you've already had, at least you act like that. No, no, I had the AMP-8 o'clock coffee. I got rid of AMP, of course. But the annihilator is special. They're drinks are special. The people are special. And the reason that stock's going up, it is pure joy to go to Dutch Bros. So Marotra tonight, Jim. Yes, Sanjay. I'm going to have to talk him off the ledge, just kidding. He's going to be able to come to play and then talk about the ledge. You know, why in the lobby? I mean, I know that this is the drone maker. I know that there's a belief that things are slowing down. Yeah, there's Tim. When you get money from the government to be able to send drones to Ukraine, the government is one of the worst payers in the world. They do pay them. Yeah. Jim, look forward to tonight. It's going to be, well, and the meeting at noon. New Easter time. Yes, new name, a lot of fun. No more demonstration. I've touched myself enough. Jim, is it true that you owned Boeing? David, will you let me go already? Can you stop it? One day, Jim. Little fairer of similitude. One day, we'll be back together. Thank you. And we'll see you tonight. Mad money. 6 p.m. Eastern time. Dazz down 30. 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