Transcripts For CNBC Squawk 20240704

Kingdom. And ahead, the future for the Company Formerly known as twitter. We will sit down with x corp ceo coming up in the next hour these are numbers that you want to see if youre bull earlier this week there were a number of articles about how we overbuilt apartments and theyre about to come on if thats the last sicking point, the fed cant dough claire victory i think they should do one more just because you want to be sure that the vampire doesnt rise up but this is going jays way. Its not a soft landing or hard landing, its a glide. And the dichotomy, i think that theyre fanciful and speaking more fiction than fact it will be welcome news to those who are long, for example, fang or what we like to call the magnificent seven. Were down, what, 4 and theres negative news out there for nvidia someone saying they cant deliver all the chips. Youre not allowed to say true or false it is not a great move for fang. I do think the trade desk made me feel much better last night for alphabet. You like trade des snk. Trade desk no, i dont like trade desk the fang stocks are imploding. Nvidia, if that doesnt go right nvidia is going lower when they come out of the quiet period and tell us everybodys still in these things well, if they want to trade out of them and then come back, good luck. Its like apple. But we have people at the price call of 18 said apples best days are far behind them i dont like to mention name because that puts me in the category that my wife says why do you have to be so mean . She thinks you should have one show where youre a straight guy and one show where you do mad and why dont you sometime Ask Management airfare down 8. 1, pretty healthy. Used cars down 1. 3 a bigger drop than the prior month. And now the big issue and i this dana on, look, the strike is going to be a very interesting thing. I think a uaw strike where that your asking for 80 billion more, that is going to be the next thing we hear about when it comes to inflation wow. That is worse than the teamster ups. Which is why my question to you yesterday is do you really believe the administration will cut this and would frn i dont know what they do because the fellow who is running this, i mean, hes using rhetoric that i hadnt heard from anyone since the 60s. The 60s. David, hes using things from the old days when lets go shut major textile companies. J. P. Stevens when i was part of the boycott, fantastic we put them out of business. Negotiating position, isnt that what you should be doing . Its really ugly. Were going to say lets go, lets define our contributions. But the tenor is united, the people so then you know. The people will neff be defeated that was the california for a major change in the way that everythings run i did, yes. Im just saying, you can have Consumer Price index and then you can have the uaw if you have teamsters and your writers and everyone gets a big raise, well, i dont care about the Consumer Price index i dont care about the price of egg. Getting them has been one of their main focusses. When people are talking about ups drivers, why shouldnt they make that money in. Im not against that. Im saying if youre jay powell you should be balancing all of this do you think the Auto Companies can afford astop j im not saying catastrophic but it would be really bad for the stock market if the Auto Companies have a long strike at the outset of a strike if that happens, it not necessarily you know, theres a lot of stocks you have to cut numbers if its a long strike. I dont want to be jim farley right now. I kind of do want to be upbut i dont want to be this guy planted himself agitated it are people and the increase in compensation is one of the wedges you use well well see. Better keep running. Oh, flrm obviously the writers and actors continue to be on strike that is another concern when it comes to companies such as disney or the uaw were to go on for a long period of time, a lot of things in terms of our outlook are going to change dramatically for disney, which reported after the bell last night, the stock does appear to be poised a bit when we start trading. The bottom line profit was better than expected, the growth the lowest theyve seen in quite some time. They did have a plan in which they gimmes and, by the way, they really stooef to have a pass worried still plan. Plermts and everybodys moving up there. Thats 67 9 they started with the at disney plus is long ago what did you think of the rhetoric in the call were talking about the comps call where he basically said that there was a previous regime that didnt know what it was doing . Iger and miff about where they missed the service initially hesity fending that line that was so far beyond ma evening they didnt have the technology and the ol yit wims with and so, david, i need your analysis could there have been a more linear view of cable tv and what was expressed in the Conference Call it was so bad its nrnl so how much worse can you get . That was a friday the 13th. Yeah, we know that. But its one of the bigger issues back up prp frm frms what to you consider to be the best . Zrk you know, when it comes to the lynn yap being frms. Nfrmt and talked about it on the call again, reiterated the fact that they want to man tan dpochl what theyre looking at and weve naermtd and you brought up apple any number of times as a potential its a possibility and the other would be a league partner. You would have a league frng and julie was talking about this earlier, to memphis on the transing and both of those being seen as very beneficial in terms of the content and distribution and giving you what they would think i would hope for a heads start. And isnt a throwtime Balance Sheet good they mentioned the arating. And i think liquidity will be out sooner rather than later when it comes to identifying a league Technology Person or and i think the kfgs it with. We had the announcement yesterday. In frmtsell a significant stake though, they would make money toing so and theyd have these partners they asked yesterday whether or not the penn deal comes in as a partner. And downgrade today. Its a showmans story my understanding is that penn deal will have nothing to do with interfering with the interest from a league, if not leagues it was somewhat dismissed. Its 150 million for ten years and then the equities. I thought the downgraded pen made sense first of all, a member of bar stool, that was 1 he paid to get back bar stool he got hundreds of. Are there dells that with and bare buying monsanto didnt go particularly well. You mean worse than nextel . Im saying the worst game in history. Could there have been an auction . , from there was a neegs a lot of young people would fch and you didnt think that the regulators would block them because it involved the portnoys you newport oo frm and. Yeah, frng by the way, as for the parks system, up 13. Shanghai was open for a full quarter this time. But six this morning with this miss on the top and bottom line freezing some questions about tourism. Yes bob did talk about how there are a lot of the florida places didnt do well but parks are still the earning engines of the company by far. Theyre very happy they stem the losses in streaming by a billion dollars. They are doing direct to consumer so that it will get to the rftability i thought you raise prices or add them to the ad tier, are you going to lose. And do we know on netflix very good ive got some m a in the fgs evening and in the nbs the fgs evening and in the nbs hour dontless a hey corporate types. Wouln nchgs,op calling each other rock stars . Up roadblocks. Youre a rock star. You are a rock star. Rock stars. Please do you know what it takes to be a rock star . Ive trashed hotel rooms in 43 countries. I was on the road since i was 16. Ive done my share of bad things. Also your share of bad things. We know that using workday for finance and hr makes you great at your job. But that dont make you a rock star. Ted ted ted oh ted in finance. Youre a rock star hey liz in hr . Can you do this . Unless you work with an actual rock star. You are a rock star thank you whos the new guy . Hi, im ozwald. Hello ozwald. Give it up for pam. Pam, you are a rock [silence] i wasnt going to say it. Some news in Luxury Retail coach apparent tap industry saying it has agreed to buy capri. Do not miss an exclusive with the ceo of tapestry. Look, i think this apparel industry is really ripe for these kind of deals. Let see what happens at tonight. I think this deal is i know t tapestry is going down but why is it fabulous . Bahr jimmy chu, they did absolutely nothing with him. Nothing. The jimmy chu price point of a thousand dollars was terrific. Stewart weismans been kicked around a lot not really great grand brand in football i think together you can get rid of some of the bad brand but i actually thought and ive interviewed hes people in the old days, david, do not underest great fwr and theyre tackingin and they can get their own coach, maybe fwremt Morgan Stanley among them even they they still got that twit ebridge. Sffrmt and european luxury is different, though. Poor unbelievable numbers from europe. They are pli being in along the line before covid he owned the laws were twrp and commonwealth m under it. They would know me they knew the size of my wife avenue toe cleavage, it was fantastic. I dont even know what that breeze it. Then i walk in there, im like, may, who who, if and they had the wrs. Thank you. And i felt like i was going to century 21 by the end of the season is thering in and i was turned down at toll. Lets get cramers mad dash, count downmu to. Count downmu to. From i saw a prevagen commercial and i did some research on it. I started taking prevagen about three years ago. I feel clearer in my thoughts, my memory has improved and generally just more on point. Prevagen. At stores everywhere without a prescription. In my thoughts my memory has improved and generally just more on point rkps and retirement savings. With voya, considering all your financial choices together can help you make smarter decisions. Voya. Well planned. Well invested. Well protected. 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Com you really got the brows. jack were standing up for our right to be lazy. jan by sitting down. ronald and reclining back jerome cause we work hard and want to relax harder. damon we, the lazy, are taking back lazy. doreen . On our lazboy furniture. vo lazboy. Long live the lazy. Its polite to thank someone when they do something nice for you, isnt it . Well, how about when they do something brave for you . Lets show veterans our gratitude. Ask your local Veterans Affairs office how you can help. The more you know. Well table a look at some laggers this morning numbers not bad. Isha up 15, north america 7. Pu they left the foolyear guidance margin in tt. Ac well watch mm in the fashion bill and you cant buy great conversations or moments that matter, but you can invest in them. At t. Rowe price our strategic investing approach can help you build the future you imagine. T. Rowe price, invest with confidence. Your shipping manager left to find themself. leaving you lost. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire all right, lets get to a mad dash and then you have opening bell quick wynn, all cylinders u. S. Very strong now the u. S. Is not nearly as big as metcal. Let just say that the chinese gamblers are coming back and that is great news for win bus win is primarily noted a they say that in boston and theyre trying to get manhattan. Where it going to be or new york city. Oh, again. Like the amazon deal [ cheers and applause lets get the opening bell here on the big board. Its asset manager firm pimco and around the 4500 level again. How about yesterday with the exception of nvidia, we had a really nice turn and that should at this time im afraid you seep guidance was good, well have the opposite. Were meandering and were flopping and chopping. We havent mentioned claims, 248. Looking for 230. That might have helped the initial dip in yields after this morning. The fed may do something up were going back to how are individual companies doing this . I think fang is definitely in play again apples got to stop. Apple and nvidia were the two charmed stocks coming into the quarter and am i still think that ooub people are worrying about it crashing for the nfl. I think apple and nvidia are the two you have to watch. People were watching nvidias 50day yesterday super microsaid theyre having trouble making the chips. You quoted that short guy that you like about nvidia Larry Williams in. You were saying he says its going to go down he came on the show we had chart week, which is supposed to be like shark week we got it who has that shark week zaslav. He said, jim, you know august will be a very tough month for nvidia its going to go down and still in the gap i like nvidia longer term but short term i agree with that it was most in the s p and thats just a rather high bar i think theyre reporting a good number but i dont think the numbers going to make you feel like remember, when we were at the ceo council, he said, listen, i can do 4 billion more i go back to interview and you know great chef, great food. He knows food better than anyone i know. I did not know that i think today Morgan Stanley reiterates overweight. Look, they cant make enough product, thats one thing. They told me during the period of covid they went and ordered a huge amount, but you need a huge amount to do what theyre doing. Now david knows that musk wants the largest super computer and. Nvidia may have has a stock gotten a little bit ahead of itself my two favorite stocks this year have been lilly and nvidia. One is over a trillion dollar market value as we need speed. Only is only half and so what that means is that scripts are going to be written not for weg oafy so novo raises guidance for the second time. Theyre iing cant do that pause if you dont take it every week, you put the weight back on remember insulin moon but theyre closing in on lrvmo. I think the big issue is how much is obesity causes and i think people will find that if you have a body mass thats above what and theyre using body mask, i think they should be using waste they dont feel luke that. At some point there will be oral versions of those drugs but youcan lose 20 plus percen of i dont and they tension ive been flour id look, its a remarkable drug. They do no they work backwards the hulu monsters eat like three meals a year talk about diet. Diet and exercise. Im still theres concerns for older people in particular well, it gets p gets rid of everything at the same time. And we dont know the longer term effects of having food digesting longer in your stomach. We know the shortterm affects ofblood. Again, were talking about also goes to the willingness of the big payors to cover them the idea being you are ultimately saving the Health Care Industry money as a result of all the things that come along with those things that youre no longer going to have, obesity, die and all those are gating factors the pill is not that cl. And that is changing it a lot. Thats a seg way to nothing. I thought you were going to segue to crispy cream. Wait, im not going to do ali mbah a moute alone did you just veto my seg way . Nobody is vetoing everything. Best Revenue Group in 12 months . A Lower International digital group, a Digital Media and Entertainment Group and then of course you still get tmobile and poa balance and prng rng and im trying to get a good idea on guidance here. Flrp a lot of deliveries and hampered peoples ability to do something when they might not be getting it dont you think that the web service is worth if a great deal in. Maybe, maybe. Cloud commerce you mean . I mean, how do you jive that number with how the economy is really doing i dont know. I mean, do you think that number could be lets say more fansful than fact . You think its for real . Jim, i cant when it comes to understanding whats truly going on, ill listen to you and a million other people and still have no idea forget the other Million People Warner Brothers discovery is another big gainer Johnson Johnson is coming back yeah. There hasnt been any new noise yet i didnt realize it was kelly and nova remind everyone what the business is theyre selling off. You can get snacks, the cereals you know and love, fruit loops, special k corn flakes corn flakes oh my god, pop tarts are going with kellanova thats the one emerging play goldman put up the journal yesterday did a critical piece to say it was soggy and that was. I think some of the parts is 79 yeah, kind of different from goldman. I like to deal because time and time again weve seen and, david, you know this that when you separate, eli and nova on board, when you separate, you get these manage and they tend to do better and i think the cereal business has been stafford by the it may actually have the benefit of even being fruit at. People want to be at least with General Mills 16 multiple they dope want to be up what they currently are but, david, you dont buy these stocks if you think were coming out of a period where the fed is these are in the cluster box. Not because kelloggss will be once one of the commodities gets together but the shelter the way the San Francisco bridge said it will. I want to just say that people at home that kol og brands, stam bell brands have stood the test of time periodically when theyre put on sale like this, theyre kind of interesting. Im a goldfish guy over cheeseits. I think they ka and i called he looked like the keibler elf. I atal. And that was not mu favorite call im glad i brought it up. Well, iger is doing fine. Because hes got private equity did he leave . Well, talk about Christmas Tree ill check that. And, jim, is this todays bounce of the day . Well, good for them they were just trashed and trashed and trashed. The stock had made a comeback. Good for them. They use Machine Learning and they actually do use Machine Learning in order to do marketing. Has trade desk come back in i liked their quarter. Traders was down 6. 5 dollars and jeff green is ceo basically said theres google and theres us he made a very compelling case to buy the stock the reaction is people bought google and i think its a really good point along the lines of what you were describing earlier about the and i dont know if its specific to that but it is notable. Look, musk is in control of pricing. Well,hes got real margin in the last four theyre aiming for 8 margins on evs. Thats their goal and its going to take a while. Tough business, huh . If an ev became something look, we have range fear, not enough theres a lot of remorse lately from. Well, we got the price of the skad yesterday who is going to make an affordable ev other than the summer, she said she it but p but she drove it and she want many and worth noting in deal news, but penn entertainment has given up virtually all the other gays yesterday. People took a hard look at that deal, what theyre giving to disney, what questioning has carl raised earlier, a couple of analysts in terps of can they get to the market numbers with that partnership with espn and then tap industry is down 9 theyre paying a big premium its nine times adjusted ebitda but theres and i think the stap industry and they do have to sell some some samer if sewnos commonwealth in with the prize profit from frm and i kid you, he rng so no sell my small cap stock. Everything and orfwan being up 4. Price made you if interest f ffrm. No. My go to is. Had much do you remember when he was in a tv show vacantly . What was the t have f. Thats the thing they aring it for frpg you have a fan tas it can and potato chips. It a are f and you dont have your celsius today, though dont have anyway celsius water mellon celsius is by far the best oh really its about 20 short. And people are shorting a stock that raymond la guarte took a stake in she may be the most unsung person james is doing well in coke kentucky and okay. Hasnt missed a quarter in like ten years when it was hand sup and thats because they have the convenient ffrm and in the quarter sometimes they do some pri f and red bulls yellow guy f and sometimes you get prooiz by market caps. This. Moneyster owns that case you know about sffrms its very interesting. The higher you go, pure less premium. Well, frm and you want it to be in thatffrmt nfrm make your north korea one a mess thats what i say. Yeah hes in mash, if coming up in the next hour fchlts yield down across the board. Well be right back. You got this. Lets go. Gobble gobble. Ive seen bigger legs on a turkey rude. Who are you . Im an investor in a fund that helps advance innovative sports tech like this Smart Fitness mirror. Im also mr. Leg day. 1989 anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. I go through a lot of pants. Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. Dow up 370 almost. Only one name in the red and thats merck you can see being led higher by names like nike and crm and visa 4515 on the s p as we are pretty much done with the data for today. Takes on claims, jim, driven by yellow maybe that was an outlier. Very good point that helps. Well get stop trading with jim in just a minute ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Bridgett is here. She has no clue that im here. She has no clue whos in the helmet. Are you ready . Im ready alright. Xfinity rewards creates experiences big and small, and onceinalifetime. Lets get to jim and stop trading. Going to have a bad quarters. The ceo made that clear. China lifted a ban on group tours to south korea and one of the big trades is that people go from china to south korea, they buy a lot of estee lauder products cheaply and sell them, like the old avon in china so its right that this stock is up my travel trust owns it and i want people to be careful. The quarter will be bad. Thats been said we know when disney said the quarter was bad, and it comes out bad the stock goes down. They report in eight days. It should go up on this, but ac a sent the fact that this companies that report bad quarters go down. Theyre allowing group travel to a bunch of countries, 70 countries. Very positive i think its good news. How about tonight then . Okay. Ive got ralph lauren and i think that by the way, people who are selling the stock ought to rethink their view. The company is very conservative on their outlook and this was a very Strong Quarter and theyre doing it i think theyre best performing apparel situation in the world and people are selling it because he gave a conservative forecast hes a conservative person. All the time. Look at that stock. Compare that to your friends at tapestry. My friends . You had them on. I did no. What are you talking about . Im trying to promote sara who has Linda Yaccarino. She does. We look forward to seeing you tonight. Mad money. As jim says, Linda Yaccarino of x corp coming up on cnbc with the dow up 400 vo Verizon Small Business days are back. From august 7th to the 13th. Get a free tech check and special offers. Like a free 5g phone. Plus, switch, keep your number, and get up to 300 off. With verizon business. Its your business. Its your verizon. Good thursday morning. Welcome to another hour of squawk on the street. Im Carl Quintanilla with david faber, live at post nine of the new york Stock Exchange. Markets enjoying a cpi print that came in pretty much in line and the lowest core annual inflation once again since 2021, down to 4. 7. Bulls taking the s p up to 4525. In just a few moments well get sara eisens interview with Linda Yaccarino, ceo of x, known formerly as twitter live from their new york city headquarters 30 minutes into the trading session, big movers were watching, alibaba in the green beats system after revenue grows 14 year on year, the biggest annual increase. Tapestry buying capri in a deal worth 8. 5 million well get details on that in a midget disney headed higher reporting a rare quarterly net loss but announcing plans to raise prices on the adfree streaming tier and crackdown on password sharing. Were going to break down those numbers in just a moment as pell. Consumer prices up 3. 4 from a year ago in july slightly below forecast. Steve liesman joins us to break down the important number, very much a focus of the market as wev weve seen a positive sresponse in equities. Everything coming in 0. 1 below and well take it if you want to get more precise about it, ill give you the number, that 0. 2 was 0. 16. It rounded up to. 02 and that follows another 1. 58 were close to being at 0. 1 and you have stuff dropping out of the index coming up, so this is good enough, i think, for the market and takes away the fear, i think, that the fed may hike again come september and even november if you look at whats happened now to those probabilities, theyre kind of taking off the month of september theyre saying we can go on vacation in september because the fed aint going to do nothing. Down to 9. 5 probability below 30 of the probability for november hike. Steve, this morning you called claims your Desert Island indicator, the thing you want to have most if stranded somewhere. Is todays print meaningful or something about the yellow bankruptcy that is affecting results . That could be in there. Just to reiterate, carl, i said it wasnt exactly why being on a Desert Island you would want Economic Indicators at all, but that being the case, yeah, its the thing that gives us the most contemporaneous view on the economy week by week, the numbers are pretty good. They dont seem to be revised very much. Were watching two things in that one is that kick up. By the way, julyaugust is a tough month with adjustments sometimes the Car Manufacturers shut down, sometimes they dont, sometimes they come back theres that were also looking at the continuing claims part of that which remains relatively low thats been bode well for the job market and again the story is the soft landing, we can bring down inflation without a big increase in the employment rate that hasnt happened yet, and weve been sort of waiting for it even up around the current level, carl, 250, not too worried about it, and it seems like at the moment with almost record low theres some prices that i think are worth pointing out airline fares down 8. 1 , the used car prices, phil lebeau has promised us cheaper used cars, and he is delivering what does worry me a little bit is the owners of equivalent represent, the housing number, that ticked up and robert frank with a report this morning that new york rents are not coming down it is expected theyll come down and part of the whole inflation is going to be okay story has a lot to do with Housing Price inflation declining. We were kicking around with jim that San Francisco fed paper that got circulated this week looking at shelter going negative in mid 24. Are you sympathetic to the doves hope that shelter becomes a tailwinds . You have to be. I look at, for example, the supply of apartment and rentals coming on, and ive got another thing, and maybe david wants to weigh in on this, but i have this idea, you had a lot of folks come out, these equity firms, and bought up housing i have to believe the cost of the carry of that housing to the extent that some of those places are either not full or vacant or even the rents the way they are for that housing, that those private equity came in and rolled up homes, i expect some of that to hit the market. Thats a part of why i think Housing Prices might come down, at least in certain regions where some of the rollup happened among the big private equity firms. Many of them are still able to raise rent, arent they . I mean, so for now, theyre still getting a decent return. I dont know what their cost to capital is blackstone was the biggest invitation homes. Right. You know, i dont have an answer for that. All i am surmising here is that the cost of carry, the return and whether or not they can raise, if you have apartments coming on the market and thats going to arbitrage the rents they can charge for the houses they have that perhaps you have a situation where some of that product comes on the market and then if you have, for example, ive been talking about this and mike santoli talked about this, not only are mortgages expensive objectively, theyre also expensive relatively, as in, the spread over the 10 or the 7, carl, so there is some scope for mortgages to come down, even if the fed doesnt lower rates. Carl yeah. 7 getting a lot of peoples attention. Thanks steve liesman. Lets get to the deal of the day, tapestry announcing plans to buy Capri Holdings like versace, jimmy choo and others Courtney Reagan joins us with more on what this means for the company and industry with the continued condolltation. There were no rumors of this leaked they say this deal does make sense. Taptry secure and cap deal vool ume, to 30day average price, most think thats pretty fair. Taptry management, the deal combines six brands it will be acreative with 2 million and bring 33 million employees together around the world. Former macys ceo worked with the brands and tells me this morning he thinks its a good deal for retail relationships actually it becomes a consolidated business relationship. It is possible, of course, that they could have a little bit more power he doesnt believe there should be a regulatory issue as consumers notice really no difference they see areas where combination accelerates growth t tapestry could help with the relationship and make that more beneficial than its been. Capris brands have International Strength that should benefit like kate spade that tapestry owns that needs more Brendan Hoffman executive at Neiman Marcus and others, he says Critical Mass is what matters for luxury as evidenced by these european house brands like lvmh, and it takes deep pockets to compete globally. Relatively sort of the same idea for a Business Model integration could be a concern tapestry doesnt have a great track record they acquired kate spade before it started losing favor and then struggled with stewart wiseman, supply chain, other integration issues there citi points out this is a different Management Team at tapestry that has a strong acquisition of brand acquisitions. Thank you. That stock price well keep a close eye given the decline. Speaking of stock prices, an eye on shares of disney. The Company Posted what was a mixed third quarter. It did have subscriber losses in the disney plus direct to consumer unit, big restructuring costs and did beat the bottom line for many analysts and announced rate hikes across the streaming platform lets bring in michael mason, who has an outperform rating on disney did take his price target down to 115. Youre an active participant on the companys Conference Call. You have one of your questions answered, the other you didnt give me your take on the quarter and what you heard on the call from iger. So david. The quarter was not as bad as we feared we talked about right after bob spoke with you at sun valley a bit better than we thought cost savings helped. And were still waiting, were all waiting for the payoff on what bobs vision will be and what he will do upon the separation of this company its a journey we thought it was going to be a tough quarter and were seeing what happens in 24 when they buy hulu and what changes they will effect per the capital structure. I wonder from an investment perspective, sort of what energizes this stock price it will be when they have a great quarter, but is it if they do this deal in terms of selling stakes in espn and both Technology Partner of some kind, is it, again, i ask you the question, what in your mind is going to be that point at which people look at disney differently as they are not looking at it particularly well right now . Its funny. I got an email from a client im going to echo what he said we thought that disney worked when the earnings were beating street and when bobfirst got there, he was crushing street numbers. The past three or four years its been the opposite they need to get numbers to place to start beating consistently, either through cost cutting or but theres so much uncertainty on forward estimates thats our funndamentl issue. Until we on the street can better model the company and the company has the abilities to beat estimates, i think were going to be in this range. That to me is what bob was able to accomplish beginning his career and the past couple years with bob iger theyve been missing numbers and numbers have been coming down thats the answer, david we need confidence in their ability to hit forward system, and thats going to take time. They have taken on a good amount of cost out of direct to consumer, but you guys have done a lot of work on streaming at moffettnathanson give me your take on the strategy to raise prices significantly on the nonad tier does it send people to the adtier or promote more turn how does that figure out if disney plus was a normal streaming product, i would be very worried about price increases. They raised price 3 a year ago and gave people a chance to spun down to the ad product our view of disney plus tax is a super fan service for fans of marvel and families. Its not trying to play the game that netflix is in or amazon or hbo max. I think its a Smaller Service with higher pricing. Thats been my thesis all along. Disneys parks have great pricing. I think disney needs to reor gent its strategy. I remember talking about this when they launched this product at such a low price point they add a lot of subs, theyre losing 2. 5 billion a year on disney plus with 8 billion revenue. Its not a good model. Something has to change. To me, raise prices, lose subs, thats fine. The business has to become profitable. All right again well be keeping a close eye on it with your help thank you. Thanks, david still ahead this morning, an exclusive you dont want to miss lets get to sara eisen live from xs new york hq hey, sara. Hi, good morning, carl. Im about to sit down with Linda Yaccarino. Its her first interview since becoming the ceo of x, formerly the company known as twitter well talk about that rebrand and a lot reig amo rhtfter the break. Stay with us on squawk on the street. Here. Aspercreme arthritis. Full prescriptionstrength . Reduces inflammation . Thank the gods. Dont thank them too soon. Kick pain in the aspercreme. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Welcome back to squawk on the street. I am sara eisen live today from xs corporate new york headquarters joining me exclusively in her first tv interview since taking on the new role x corp ceo Linda Yaccarino. Thank you for having us here today. Sara, thank you for being here thank you for visiting us today. Its so exciting and to be on squawk on the street is a real privilege, so thank you. Were glad to talk to you we have a lot of questions, and i think we should start with, the most recent major announcement, which is the company now being called x why did you do this rebrand . Well, first of all, i think we need to rewind a little bit and remind ourselves that elon has been talking about x be everything app for a long time, even when we announced that i was joining the company. I was joining the company to partner with elon to transform twitter into x, the everything app. So, you know, also at the heart of the rebrand, x, we need to keep our minds open, that its developing into this global town square that is fueled by Free Expression, where the public gathers in real time i want to stop on that for a second, because that real time, is whats most important about the vibrancy of x and how people interact with it, and now, its all in one seamless interface. Think about whats happened since the acquisition, right experiences and evolution into long form video and articles. Subscribe to your favorite creators who are now earning a real living on the platform, which is so exciting you look at video and you look at soon you will be able to make video chat calls without having to give your phone number and then payments. Payments, theres been a lot of talk about that, payments between you and a friend, between you and one of your creators, so theres been a lot going on in the rebrand represented, really a liberation from twitter, a liberation that allows us to evolve past a legacy mindset and the thinking, and to reimagine how everyone, everyone who is watching around the world, its going to change how we congregate, how we entertain, how we transact, all in one platform. Linda, i understand youre trying to present something new and a bigger idea, but youre brand person twitter was a strong brand you have tens of millions of active users, even meta with the name change didnt change facebook some think its like j j changing bandaid. I have to say, we can spend some time to talk about what bold ambition brings bold ambition, that the team at x has, delivers great experiences and great new products, and if you stay twitter or you stay whatever your previous brand is, change tends to be only incremental and you get graded by a legacy report card. At x, we think about whats possible, not the incremental change of what cant be done, and if you think about if you think about the velocity of product changes, Infrastructure Improvements that have happened over the last ten months, it kind of answers the question of why rebrand, and the exciting thing about it is the User Sentiment on the platform. Its only been three weeks, but the User Sentiment on the platform successful . Three out of four, very successful three out of four in our User Community feel good, a lot of them feel great about the rebrand because they look at us, its habitual, they know where were going, but what we found out was more exciting, which was theres much more of a broader conversation going on, what did this kind of clear canvas allow us to do and theres broader conversations going on about new products, about long form video, about payments, so its actually were believing in our User Community and not limited by that legacy thinking. You mentioned that it has always been elon hes been talking about this for a while, which does raise the question about your role as ceo and whether he shares control . Mine and elons roles are very clear i want to go back to the rebrand for a second if anyone remembers, i have it saved, not everyone has it saved, when elon announced me joining the company, and he was very specific and very clear, that i was joining him to help him transition twitter to x, the everything app, and now lets go to our roles and the clarity of that because its pretty straightforward. Pretty straightforward elon focuses on Product Design he leads a team of extraordinary engineers and focuses on new technology, so think about it as elon is working on accelerating the rebrand and working on the future, and im responsible for the rest, running the company, from partnerships to legal, to sales, to finance, all the things and youven to my in doing that yes, i have autonomy in doing that i have a great partner in elon its been eight incredibly supportive weeks i know a lot of people ask me that question. Theyre incredibly curious but our roles are very clear, and the way elon and i talked about it before i started, was that while our lanes are fairly clear and defined, we are brought together by the belief in what were trying to achieve, right. So when i was talking on our joint belief in Free Expression and the importance of that being a foundational core value of the company, and then, you know, you kind of think about it simply as almost like a relay race elon works on the technology, dreams up whats next, passes the baton to me, i bring it to market for Economic Prosperity not only for our company, the but for all of your customers. You have the hard part of making that vision into a business and i do wonder if your and elons vision of a free speech platform can be a viable business it being a viable business i think you have to go back to kind of like the vibrancy and the health and safety of the platform because if there are half a billion users all over the world showing up multiple times a day in growing periods of time to talk, debate, learn, laugh, i think x might be one of the funniest places on earth, and if theyre going there to share their lives, their vulnerability, their dreams, their opinions, what a vibrant place is that and what a great place for a Business Model, for lets talk in this context for advertisers, to participate and take advantage of that realtime communication thats going on, and i think you cant separate big events that happen on the platform, whether now we can talk about the world cup or you can talk about the nfl or the nba in realtime, people congregate on twitter because you have to keep up with whats going on its almost like a literal 24 7 fomo, and a most commercial answer, which i think is the right way to answer your question, is the Business Model. I will give you the most commercial answer, where would we think barbenheimer got started. Two of the biggest movies that have opened and happened since covid and i think in a week or two you will be nearing 2 billion in box office receipts, but not that x is taking credit for that success, but its where the conversation started theres a lot of hate and vitriol and conspiracy theories and those attract a lot of eyeballs too if youre a brand and a business, why would you feel safe advertising you know, i think thats an appropriate question and i think some of the headline comments or phrases need to be continually brought to light and debunked, and im glad you asked i want to be clear, you know, for almost 11 years my previous experience was at nbc universal, and a large part of my arena was overseeing all the advertising revenue and partnership for the company, and our number one social partner was Twitter Twitter was safe and we felt comfortable always being there and not all brands. A lot of brands have left. Hang on im going. I hear you. And by i want to take that last ten years and put it in perspective. Because by all objective metrics, x is a much healthier and safer platform than it was a year ago since acquisition, we have built brand safety and content moderation tools that have never existed before at this company and weve introduced a new policy to your specific point about hate speech called freedom of speech, not reach so if youre going to post something thats illegal or against the law, youre gone zero tolerance more importantly, if you are going to post something that is lawful, but its awful, you get labeled. You get labeled. You get deamplified which means it cannot be shared and it is certainly demon tized, back to your direct point, about brand brand safety so they are protected from the risks of being next to that content. Its also why its really important to note that once a post is labeled, and it cant be shared, and the user sees that, 30 of the time, they take it down themselves. Staggeringly, they take it down. And that reducing that hateful content from being seen, is one of the best examples how x is committed to encouraging healthy behavior online and today, i can confidently sit in front of you and say that 99. 9 of all posted impressions are healthy. How do you define healthy is porn healthy . Are conspiracy theories healthy . It goes back to my point about our success with freedom of speech, not reach and if its if it is lawful, but its awful, its extraordinarily difficult for you to see it. How many millions of people follow kanye west, lawful but awful, and hes allowed back on . You know, kanye, who hasnt rejoined the platform yet, but is planning to do so, will operate within the very specific policies that we have established, that were clear on, that everyone who is watching this or listening on spaces can access themselves we have an Extraordinary Team of people who are overseeing, hands on keyboard, monitoring all day, every day, to make sure that that 99. 99 of impressions remain at that number, but we also have to remember whats at the core of Free Expression. You might not agree with what everyone is saying we want to make it a healthy debate and discourse, but Free Expression at its core will really, really only survive when someone you dont agree with, says something you dont agree with, and what a great place we would live in if we were able to return to a healthy, constructive discourse amongst people that we dont agree with. So label certain people or deciding certain people are good or bad is not a universal thing. Because there are some people that disagree with us. I and our individual opinions thats why were doubling down on brand safety, why our trust in safety team is so good at what they do. But i think there are questions with your boss on tweets i was talking to a brand that scaled back advertising on x why . They said well, the head of the company sometimes tweets things that we think are in violation of their own safety practices, and in an interview with my colleague david faber, elon said in response to a question about tweeting a Conspiracy Theory whether that was risking losing advertisers, i dont care. I want to say what i say, and i lose money so be it. Doesnt that make your job impossible it definitely does not make my job impossible. I think what it fuels more of an ambition for my job to make sure that everyone, including elon, is entitled to their own opinion. Now, we all do things that we reconsider at other times. I think youll remember when i in my early days of meeting elon, i interviewed him at a marketing conference in miami, and we had little bit of a debate of rethinking tweets maybe, i dont know, after 3 00 a. M. In the morning, and does he give you a heads up on the tweets . I would never expect him to do so. Again, the realtime nature and butte of x, clearing your tweets with someone, is much less effective. But that being said, i want to get back to its really important that everyone should be allowed to have their own opinion, right, and thats really important thats for everyone. Not just what some people determine is a lane that you should live in as far as brands reacting potentially to some of anyones tweets, again, why we put the brand safety, you know, tools and capabilities in place, but also, i think what brands are getting more and more reminded of, is the platform is not about a particular persons tweets its about the vibrancy and the half a billion users who are on the platform and what that represents as opportunities for them i could go back to the great movie opening weekends that weve had and contributed to i can go back to world cup and go through the brand that have stuck with us and the brands coming back. Are they coming back . Cocacola, visa, state farm is a huge partner, theyre coming back. The last bunch of weeks, continued revenue growth, and i think its a combination of things number one, the reminding of two brands and specifically by me, ill tell you what ive done the last eight weeks since ive been here, in addition to meeting a lot of the team. For the last eight weeks ive either been in personal, direct, and lived on a lot of planes lately, direct conversations with cmos and ceos, and we cover a lot of ground. I focus on those that have either maybe paused or reduced spending to remind them about the power of the platform and the power of the user base and the economic potential of them partnering with us again again. Think about this that is a specific im going to add to it. I think also presence. Keep in mind, were a company that has gone from 8,000 people and has gone through a very necessary cost discipline exercise how many is it now . To about 1500 people. So it makes sense that there would be some type of impact of presence with these people so thats what my job is. Thats why i came over with a lot of experience, a lot of relationships, to reengage and nurture those relationships again. But its also whats happened in the last week, is a byproduct of me listening to them and listening to them of what was important, and whats most important to reengage with them, has been the rollout, i believe, on tuesday, we announced the rollout of all of our new safety tools, right, so think about it in terms of brand safety i wrap a security blanket around you my brand, my chief marketing officer, and say your ads will only air next to content that is appropriate for you of your choice in addition to that, we took it a step further and we exclusively partnered with one of the leaders in this space, integral ad science, ias, and it brought another level of transparency think about our conversations as a threeway deal, x, our partners, our marketing partners, and ias. That brings a level of transparency and protections to them that reengages them with this community. Can you get to cash flow positive and when its a really great question and i want to be specific. You know, ive been at the Company Eight weeks. The operational run rate right now, were pretty close to breakeven. Close to breakeven. Close to breakeven were pacing well. When you think about the cost discipline that i mentioned and i mean incredible cost discipline before i arrived at the company so the last are you hiring . Im to get to that which is the most exciting part so the answer to are we hiring, yes. Its why i came. After eight months and all the people that ive seen, theyre so focused on the success of x i get to come in and shift from this cost discipline, to growth, and what does growth mean . Growth means hiring. I would add, we have recent momentum in three key areas, right. When we think about our data licensing and api with x is an incredible business, our new subscription business growing, and then what part of my what i would say expertise and experience and what i came to do, was to drive advertising at the company. I can say that i am encouraged by the daily meetings and conversations that i have, research, focus, and considerations from the really blue chip brands across the ecosystem, so im thanking them in advance, im thanking them for those who have come on since ive joined, and the future is bright. Its a good update on the business linda, i have to ask you threads a competitor that launched five days got 100 million users. How big of a threat is that and is zuckerberg really going to fight elon oh, goodness. I dont know which part of that question i should take first. Theyre both serious questions. Theyre both serious questions. Listen, x is no stranger to competition. Many have tried over the years with a Company Formerly known as twitter, but think about what twitter has pioneered, right hash tags. Verified checks. Paid verification. Really paving the way for whats next its why many people have tried. Youre right, threads did jump in with a ton of hype and a launch pad from their instagram users, that everyone was predicting this dramatic and continued growth so thats where i land on, is, obviously, you said has dropped off. Its dropped off dramatically. But you can never ever take your eye off any competition, because theyll continue iterating as much as the launch has stalled, were keeping an eye on everything they are doing. They may be building to what twitter was, okay, and enter rebrand, enter x, and were focused on what x will be. Its entirely different road map and vision. Is it a good bang if youre the head of x physically fights in a cage match against the head of meta . You know, i its hard to is it really a good thing . For what youre trying to do, build this business . I think it is a separate excitement from the business you know, i represent all business operations. I dont think i will be on the undercard for the cage match so i think we have to really stay focused on the seriousness of the potential of x and not conflate it with things that may be a humorous back and forth between zuckerberg and musk and well see if that cage match really does happen what i can say, is that ive had a front row seat of witnessing that elon is training. I was in San Francisco last week, so that is true. Hes posted about it and i also know zuckerbergs history and level of preparedness, so nonetheless, what a great brand sponsorship opportunity and i cant help myself, but what i was happy to see is that there certainly is an agreement to support one of the most Important Community groups there is that we should all be thankful for and thats veterans so if it does happen, i would have to say, there are some theres some really great excitement of terrific beneficiaries of it. Would never happen with female executives . I think we might have an exchange in a different way or different i agree. Again, thank you. Thank you so much for your time really appreciate it, being here at twitter or excuse me x hq in new york city. Thanks so much. Thats our sara eisen. Markets have been holding in here s p 4513 well get some of the biggest movers after the break stay with us the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . sfx people cheering sfx Stock Exchange bell ringing sfx people celebrating sfx people celebrating sfx Stock Exchange bell ringing welcome back with your cnbc news update. At least 36 people have died in wildfires on the Hawaiian Island of maui according to local officials who say three wildfires are still burning with no word on how much they are contained. One of Donald Trumps two codefendants in his classified documents criminal case was not arraigned as planned this morning because he still hasnt secured local counsel. The other codefendant pleaded not guilty the former president waved his right to appear this morning and also entered a not guilty plea. And a new propublica investigation goes into deep detail about the gifts and Luxury Travel Supreme Court Justice Clarence thomas reportedly received over the last three decades gifts including sky box seats at sporting events, flights on private planes and stays at luxury resorts, Justice Thomas has not replied to nbcs request for comment. Back to you. Thank you lets give you a check on the markets. Were up after what has been a difficult week, particularly for some of the mega cap tech companies. Different story today. Lets bring in morgan ike santon what is his take on this bounce after rough trading if you were long the nasdaq or the magnificent 7. For sure. I think, david, initially just a burst of relief off of roughly as expected cpi number which may be modest dovish imcomplication which was the absence of a potential negative clearly we were clinched up for something not as good. That sent like the volatility index down a point and you have a sense they were relaxing a little bit in the moment the context, though, to me is pretty important this is the sixth day in a row that weve crossed the 4500 line on the s p 500 weve kind of been stymied here for a while, churning around, before the july 12th cpi report. We were at 4472. Thats kind of where we were before this one. Were trying to run the same playbook to celebrate the fact that disinflation with decent growth is i think the baseline assumption for most investors right now. The drop in yield and a little bit of a maybe the fed is going to take a meeting off and we dont have to worry about anything until november means some of the big cap nasdaq stocks can bounce off of these pullback levels. Nasdaq, apple, nvidia, all had kind of quick 10 pullbacks off of their highs. Yeah. Beyond that its hard to know if this carries us forward in any meaningful way now that we have earnings through. As we say we are through earnings what does potentially then carry us, if not focus on that i think its about, you know, are we in a steady state, you know, 2 to 3 growth mode in gdp. Everything that feeds into that, retail earnings next week is probably going to be part of that fed speak is going to be out there and were going to get messages from jackson hole i think that we can take some comfort in the fact that the fed thinks rates are in the zone of where they need to be. Were not going to worry about big moves. Thats really different from last year. Oil prices ticking higher, people saying they can break out. Natural gas, Inflation Expectations ticking up on a longer term basis means its a little more of a twoway trade to figure out which way inflation goes from here thats not todays or tomorrows business but the stuff that lurks out there that requires confirmation the soft landing is presumed but needs confirmation. Retail sales, some of the bank of america credit card data today looks pretty hot for july, Online Electronics or groceries, a lot of positive spin on walmart going into tuesday. And walmart stocks been acting well. Seems like lower income households, doing more than their part it does probably revive that, maybe its the no landing type of argument, but at the same time, i mean, claims ticking up for technical reasons you are seeing the economy slow to the point where housing is not racing ahead it seems as if you can make the twosided argument the market happy to be in the middle of it for now, but the fact that we didnt reward a good earnings beat season in a dramatic way, i think tells you that the market got here already thats what 20 up year to date in july was about in the s p thats what 30 off the october low was basically telling us already. Mike, thank you mike santoli up next, if you are trying to rent an apartment in manhattan, somehow its getting more expensive were going it find out why and just how much more you may be yi aerhereak dont go anywhere. You heard on named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com housing inflation accounting for more than 90 of the increase in this mornings all items cpi numbers as rents in manhattan hit fresh new highs. Robert frank joins us with details on that. Good morning. The average rent for a manhattan apartment is 5,588. That is a brandnew record median rents also hit a new record along with price per square foot. Every measure hitting an alltime record. Far and away the most expensive market in the country. While the rest of the u. S. Is seeing rents flatten or decline, manhattan has seen records in four of the past five months the average rent is now 30 higher than prepandemic this despite the fact that new yorks population is smaller than 2019 and offices are still only half full add to the mystery of high rents is that inventory actually rose by 11 over last year. Normally when supply grows, prices also fall that did not happen. There is one hopeful sign, though, for renters and maybe for the fed. New leases fell 6 over last year while prices keep rising, there are signs renters have hit their limits in terms of affordability and theyre going elsewhere. August is usually the peak rental month with back to school so, brokers say to expect another month of records in august, maybe in the fall we could get a flattening out or even decline theyve been saying this for six months and it hasnt happened. Robert, i want answer from you then this is the mystery. You said the population has gone down, the inventory has gone up. What explains it there are several explanations ive heard, none of which are very convincing. One is airbnb has taken regular units off markets and rent stabilization has given landlords an incentive to keep old apartments empty rather than repu renovate and rent them, and those on the sidelines camping out without new rentals. Were seeing it more so in new york city. A lower population, offices only half full and yet rents keep rising its a very perplexing problem here in new york others argue it was the exodus from manhattan and then the return that gave landlords leverage and this bullwhip effect perform opposite of whats happening in miamidade and austin where you see rent relief because the migration trend has reversed. And a lot of people say landlords took advantage of that reinflow when people came back into the city to jack up rents and thats yet to correct. That is absolutely another factor. One thing i would point out, robert, is people are looking at cpi this morning and comparing it to zillow, which is an advanced look at new rents, observed rents, falling quite markedly and whether thats reflected in cpi in the next 12 months. Again new york has so many unique dynamics it is the largest Housing Market right now theyre saying expect at least another one month of increases and maybe well start to come down in the fall oh, man kids are never leaving theyre never leaving. Do you want them to go . Eventually, yeah. Theyre going to be living with me forever theyll be in a new sitcom for nbc. Well need it. Thanks, robert. Robert frank. Still to come. Tapestry the biggest laggard on the s p today. The home oveacf rse and jimmy choo details in two a million differes i should be trading. Look whats up my trade dogs . You should be listening to me. You want to be rich like me . You want to trust me on this one. [inaudible] wow yeah its time to take control of your investing education. Cut through the noise with bestinclass Education Resources that match your preferred style of learning. Learn your way. Not theirs. Td ameritrade. Where smart investors get smarter℠. Ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. We mentioned tapestry capri earlier. Capri up 50 premarket, settling back as we talked about consolidation in fashion well talk to the ceo in the next hour. Yeah. Listen, when you write these things up and writing a significant premium, 50 bucks a share, you hope your stock stays in there a number of challenges taking on a lot of debt over 8 billion, they say theyll get leverage below 2 1 2 times in a couple of years. And the turnaround of the michael kors brand turning around michael kors will continue to be key for them. You can see there are some new data its not a stock deal. Its all cash. Its not arbitrage going on. They say maybe its time not to take that risk squawk on the street will be back after this. Ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Good thursday morning. Im Carl Quintanilla with mike santoli. Coach owner tapestry buying michael kors and Capri Holdings in an 8. 5 billion mega deal tapestry ceo will join us. White house unveiling a ban on u. S. Investment in certain Chinese Tech Companies deputy secretary treasury fills us in. Twilio shares up big with guidance boost ceo will join us