Move higher in treasury yields in response to that jolts number. So, adding to the other concerns about supplier treasuries and all the rest, we did have some hot economic data. The question is, mike, where do you go when you are seeing yields move this fast and this far up . Because the safe havens that you go to during a weaker economy like Consumer Staples and utilities are getting whacked on the back of these higher rates because they pay high dividend. Theyre rate alternative. The cyclicals get hurt. Tech is getting hurt because you worry about valuations on the back of higher rates. Whats left . Whats interesting is that tech in particular has acted, at least the very largest companies, have acted a little more as defense than as pure Interest Rate proxies in the last little while. Yesterday nasdaq 100 was up. When you had yields making new highs. Part is the Balance Sheet strength. I guess the other question, though, is do you decide that the market is essentially getting too negative on cyclicals or theres these big oversold parts of the market that maybe have overcorrected for what were looking at in the way of the economy. Obviously, that remains to be seen. Its not, by any means, a safe bet, at least doesnt feel that way at the moment. But thats to me, thats the kind of question you have to ask yourself is where is the market overshooting, if anywhere . If you dont know how high rates will go, you dont know how much damage the economy will take. If you look at names like carnival, down 7 . Airbnb, the travel names that have held up strongly in terms of demand, thats whats getting beat up. Theyve also been winners in the stock market. The bond market is looking for the pain point. Staying on the markets, our next guest says the next five years looking pretty good for equity investors. He believes we may already be at the start of a new bull market. Joining us, algier ceo and cio. You say we might be at the beginning of a bull market. Clearly we had a big gain off that low 11 months ago, almost 12 months ago. Given back some of that, in the average stock, what does the environment feel like to you . Since a year ago weve had seven months up out of the last 11, 12. So, i think its a natural process since late summer, since august. Weve had two months of correction pullback. Its natural. We see a still strong economy, but we also see the fed still fighting the fight with inflation. Likely to do one more Interest Rate increase in november, we think. But that is towards the end of the process. Thats why we think were already probably seeing the bottoms of this market, really ago around 3,500. This is a natural pullback in what i would call any bull market. Can you really say that if you know we havent seen the highs on yields . Well, we havent seen the highs on well, weave seen highs since the yields right now are new cycle highs. Going back to 2007, which is interesting. The fed likely will do another 25 basis points in november. I think theres a high probability that theyre sort of done then. At that point we still have an inverted yield curve. So, you know, the best bet would probably be shortterm treasuries, two years at 5 . But i think the market, the equity markets will sense the end of that cycle, rate cycle and respond positively. If youre talking about a fiveyear time horizon, i think in five years the s p has given you 11 return. Not bad. Historical averages plus a little bit. Presumably you have to get through maybe a recession, earnings downturn over that span. How are stocks set up for that trajectory . Well, one thing thats interesting to look at is earnings projections in the s p, they have started to grow as of the second quarter. Third quarter will be an acceleration. Its a reminder that the s p, the highest quality growth companies, the highest Quality Companies with barriers to entry, free cash flow, theyre doing quite well in an economy that is still doing quite well. Look at the jolts this morning. We think thats where investors will want to be for the long term. Meanwhile, there is shortterm choppiness. In terms it of within the market, you would stay oriented toward Higher Quality in growth or other areas . Well, its notable that the big seven, the microsoft, amazon, apple, et cetera, the top seven stocks in market cap have absolutely dominated this first move in what i would call the bull market. It makes sense. Theyre all high quality. They have incredible brands. Free cash flow is tremendous amongst them. Theyve been like 75 , 80 of the market moves so far. I think thats a positive in the sense that theres still 90plus percent of the s p thats in a bear market or barely off the bottom. And i think when that starts to rally, were going to see a much more broadening equity market. Thats what were looking forward to over the next three to five years. Because you guys invest in multiple asset classes, right . How much are you increasing allocation to equities right now . So, our we have shortterm hedge funds. Theyre positioned for the rockiness right now. Quite defensive in the sense of were not interested in the utilities. Were short real estate. Were short a lot of the Interest Rate sensitive areas of the market. But meanwhile, weve maintained a long, bullish position in the big seven, so to speak. Not all of them. Companies of that character, high free cash flow, strong growth, big bears to entry. Kind of the mirror image of the cyclical Interest Rate sensitive part of the market . Exactly. Dan, thanks a lot. Great to talk to you. When we come back, well take you to Lower Manhattan where the ftc founder Sam Bankmanfrieds trial has just gotten under way. Well give you an update. Well talk to the ceo of novartis and ceo of kellogg. And the selloff, the dow is down 383 points at the moment. Plus, continuing to watch the bond market and the tenyear. Right now it is up to 4. 766 . Thats another high going back to 2007. Squawk on the street will be ghba. K 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 [ cheers ] yeah woho 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. Ftx founder Sam Bankmanfrieds criminal trial starting today in a courtroom in manhattan. Thats where we find kate rooney. Reporter jury selection is under way. They got in there around 10 30. The jury has been sworn in. Things are happening at the trial in Lower Manhattan. Sam bankmanfried has pleaded not guilty to those seven counts, those criminal counts. He is accused of fraud and conspiracy over the collapse of what was once a 32 billion crypto exchange. We got some color from the judge, guys. They talked about judge kaplan said, this is going to be a sixweek trial. You are not to do any research at all. You cant read the news, you cant google. Sam bankmanfried, you cannot even look up the judge. He was very firm in addressing the jury. He also addressed Sam Bankmanfried, there, sitting in a gray suit next to his lawyers. He said, you have the right to testify. Even if your legal team says you dont. If you want to testify at any point, you just raise your hand and you can approach the stand. He really emphasized the fact that even if his legal team says no, Sam Bankmanfried is allowed to testify. The list of juror questions includes things like, do you have a negative opinion about cryptocurrency . If a Crypto Company fails, theyll ask, do you feel only the owners are to blame there. Do you have any negative opinions about amassing wealth to give it away to charity . Also known as effective ail truism. They also talked about bankmanfried having adhd. They plan to say, raise your hand if youve never had any personal or professional experience with adhd. Theyll ask about opinions around the defendant having adhd. Bankmanfried has been in custody since august. He argued he didnt know about some of the financial situation at ftx. For his top lieutenants, some have pleaded guilty. Legal experts tell me it will make this case especially challenging for the defense. At least three of these executives do plan to testify. We have a marching band nearby, if you can hear it. Back to you guys. And a dog we heard, kate. Seems pretty busy down there. And do we have an anticipated time when they may actually impanel a jury here . Is this going to be a oneday process . Do we know . Reporter judge kaplan, im told, is known for moving quickly. Other legal experts and lawyers that have been in court with him say he tends to move pretty fast. He seems like a no nonsense type of guy. He seemed to move the process quickly. Could be as soon as today. We could get Opening Statements and opening remarks later today. They could adjourn and jom back tomorrow. Were told it should start today but you never know. Its a highprofile case. A long list of questions. Theyre looking for an impartial jury. Its okay if you know about it, but were looking for jurors that are fair and impartial. That doesnt include having an opinion on bitcoin . Reporter it does. Everyone has one. Reporter right. It is a divisive topic. They did make it clear, you know, most people in Lower Manhattan, im sure, have heard of Sam Bankmanfried. Its going to be hard to avoid the Media Attention and press coverage of this case. They do say, though, one of the questions is, do you have feelings about cryptocurrency . You would think this potential jury pool, if someone says, yeah, hate it or i lost money on ftx or one of these exchanges, would be exempt. Well see how they figure that out. Kate, thank you. Keep us posted. Kate rooney. Meanwhile, novartis gearing up to spin off their generics business. Shares of sandos are set to trade on swiss stock exchange. Sandos was put under Strategic Review in 2021 amid price pressure. Its good to have you. I feel like weve been talking about this sandoz spinoff forever. I ask you every quarter. It must be a big milestone this is happening. It is. Great to be with you. Weve been under big transformation of novartis for the last five years. This brings that transformation to a close. We spun off alcon. Now that we spin off sandoz, novartis is a pure play innovative company. Its best suited to generate gains for our shareholders and medicines. We think sandoz can be a leading generics business for the long term. What does a pure play core Pharma Business mean . Does it mean more acquisitions . More investment in research and development . A couple of things. First, we focused down to four core therapeutic areas, cardiovascular disease, neuroscience, immunology and oncology. Well continue to invest in those areas. Internal r d and continue to look at bdl and m a. We have areas like cell gene therapies and rna therapeutics and we plan to invest further into those areas as well to bring longterm Growth Opportunities for the company. We think with that setup we have the r d firepower to grow consistently over time. Youve seen two upgrades already this year. The business is firing on all cylinders. Were excited about our future as a pure play company. You mentioned the r d run rate. What about a more pure play company the idea of m a in those areas to accelerate things or really even to just find wellpositioned companies in areas beyond what you do already . You know, our focus remains bolton m as. We did chanook 3 billion acquisition in renal. I think it will be in the sub 5 billion m a. We will look at bigger but i think its in the smaller and bolton m a opportunities. Of course, weve seen a pullback in the xdi and that creates opportunities. Were continuing to look at those. I was just going to say, i mean, dont speak now, but we have this big move up in rates today. Biotech valuations are continuing to plummet, especially these small and midcap stocks. So, do you think this sets up a broader m a cycle in the industry . I think it will certainly create lots of opportunities. I think the tricky thing in our sector is it all comes back to science. We need companies that have really sound science, great data, have done the necessary work to make the investments worth while. As you know, many biotechs are trading below the cash they have on their Balance Sheet. Some of that is a reflection of the quality of the science. So, were scanning the horizon, looking at all of these companies, trying to find good opportunities that can build up either those four therapeutic areas or the new technology platforms. Speaking of m a, lily added a more than 1 billion deal. This will now be a bigger competitor for you. This is a space you operate in and i think dominate, but have you to deal with a much Larger Company now with lilly. Why are Radio Pharmaceuticals so hot and how does the Competitive Landscape look now after this deal . We started this space from a therapeutics standpoint back in 2018 with our acquisition. We have two products now in the market, both trending to be 12 billion plus assets. One of them will likely be multibillion dollar medicine for prostate cancer. We think it can be one of the foundational therapies to treat solid tumors in the cancer space. This is a really complex area. We need to invest in it for five years. If it requires us to create medicines that are radioactive that have five days of shelf life and we need to get it to the patient on time within those five days. So, very complex operations. We welcome the competition, but we think that given all of the investments weve made in the last five years, were well set up to lead the space for the next decade. Vas, just bigger picture, as you look at the speed at which the diabetes and, you know, antiobesity drugs have taken hold and have really, in a sense, upended some of the growth assumptions for other parts of medicine or, you know, even food and everything else, Behavioral Changes in the society, has that made you rethink anything in your portfolio or just sort of even the possibility of how quickly you can find one of these step function innovations . Look, i think the glp1s, obesity medicines, have really changed the frame. What theyve allowed us to see is you can have medicine broad based and used in very common condition and create, obviously, very large valuations for companies in our sector. So, we have certainly taken a step back and asked, what are areas where we think we can create that kind of unique differential advantage with a therapeutic that could have a real big step change. Areas were looking at, weve talked about radiologic therapies, cell therapies in imu. N. Ology, which is a whole new space. Really exciting data there. Could you find a real step change in the standard of care in that space . I mentioned r a therapeutics. It does, i think, show that if we can find meaningful medicines that really move the needle, you can create incredible value for shareholders and shareholders, im sure, are looking at this broadcast. Thats the exciting thing about the sector. If you find the breakthroughs, big things can happen. You must be having a little fomo not being involved in these obesity drugs. Of course, sara. No question. You know, look, i think one of the Lessons Learned from how they did it was they were consistent over a decade, including through some really tough times, when valuations were really low for those two companies. They stayed consistent in diabetes and metabolism and they found a breakthrough. Thats the lesson for our sector. You have to stay consistent and disciplined. Absolutely. Finally, i notice you opted to participate in the medicare price negotiations. This is what comes from the inflation reduction act. You had previously sued, along with some of the other drug companies. Did you have any choice but to opt in . There really is no choice in how this unfortunately legislation is set up. Its a pricesetting provision, but if you dont participate, youre excluded from treating making your medicines available in the medicare population. We thought it was prudent to be part of the process. I think i have to highlight once again, this is a really problematic legislation from how its set up. It penalizes pills and small molecules in a really powerful and disappointing way. Think we need to fix this legislation if in the long run we to want find medicines that can help the medicare populations and find a whole set of medicines that will help society in the coming decades. What do you say to people that say, its good, well get the drugs at a cheaper rate. We need to get drugs at a lower price. This is about patients at the pharmacy counter. When you look at how this pricesetting provision is set up, it basically creates a genericization event. Our industry is predicated on the ability to have protection for our innovations for 13 to 15 years. You make that nine years, very hard to find medicines for Rare Diseases or cancers or cardiovascular disease. Nine years is just not enough time for us to really generate the return we need to for this medicine. Well continue to raise it. I know you will, too, as an issue and a debate. Vas, thank you for the time today on the big news on the sandoz spinoff. Speaking of companies splitting up, kellogg now two separate businesses. Both stocks having a rough few days of trading at the outset. The ceo of wk kellogg, the cereal unit, is with us later this hour. We just did mention it, watch point biopharma. Eli lilly will buy the business. Those shares up. Back in two. Gold isnt merely a commodity. Its an investment in people and communities. At osisko, we strive to build modern, safe, and sustainable mines that benefit all. Think big. Shape tomorrow. Osisko. Here in hawaii there is always time. Theres time to spend with family, time to enjoy with friends. Theres always time to listen or lend a helping hand. Here we have all the time in the world, but no time to waste. Watching the spice maker mccormick down 9 . Earnings come in in line. Revenue short. Sales volume decline and management noted weakness, specifically in the asiapacific region saying chinas economic recovery has been slower than anticipated. The stock is at more than threeyear low. I think they raised guidance but analysts were pinpointing that to strength in the mexican jb, which they thought was not the best reason for the guidance range. Overall, though, it wasnt like super weak. Down 2 on back of higher prices. It is a tough market to report anything into. Foodrelated staples have had a tough time. A lot of questions about, you know, ability to price down the road. So well see how that plays from here. Cnbc is launching a new initiative to recognize women making waves in the business world. Senior media and tech reporter Julia Boorstin is here to tell us all about it. Hi, julia. Im very excited to announce we are launching cnbc changemakers, women transforming business. This is a new franchise and annual list of trailblazing female leaders. The list of 40 women will be unranked. It will focus on accomplishments in the past year and will feature women from Companies Across all sectors of the economy, including philanthropic organizations. And were going to be publishing this list in january. Weve put together a stellar advisory board, which will be joining me and the cnbc Editorial Team to determine the weight of qualitative and quantitative criteria. The list includes sheryl sandberg, ken frazer, chris jenner and Harvard Business school dean. Applications are open as of today to female leaders at private companies and organizations, including philanthropic organizations with at least 25 million in revenue in one of the last three years or enterprise value of at least 100 million. For public companies, a market cap of at least 250 million. For more about our inaugural list, find the Nomination Form at cnbc. Com changemakers, or you can scan this qr code here to apply. So, im very excited to be able to work on this project and surface new stories of new icons of innovation and to highlight new leadership approaches that can really inspire not just women, but everyone. Carl . No carl, but ill take it. Sorry, no carl. Sara. I have so many people i want to put in for applications. Thats so great. Cant wait to see it. Time for a news update with bertha coombs. Hi, sara. The president s son, hunter biden, entered a not guilty plea on three gun charges this morning in federal court. The younger biden is accused of lying on an application about his legal drug use when buying a firearm in wilmington, delaware. Two of the counts against him carry a maximum prison sentence of ten years, while the third has a maximum of five years. He initially struck a plea deal to drop the gun charges if he pled guilty to two taxrelated charges. But that agreement fell apart in july. Meantime, former President Donald Trump appeared in court for a second day in his 250 million fraud trial in manhattan. Trumps former accountant was the first witness called to the stand monday. He is continuing his testimony this morning. The trial is expected to last three months. A texas congressman says he was carjacked last night in washington, d. C. , by three men with guns outside of his apartment about a mile from the capitol. Representative henry said this morning he was not hurt and the car was eventually recovered a couple of miles away by police. Rough, rough times, sara. Back to you. Bertha, thank you. Up next, on the speculation that bond vigilantes are back. He coined the term to begin with. As we watch the move in the bond market, well highlight some other stocks with recently rising dividend yields. You see verizon, at t and keycorp, very high yields. At t and verizon actually up slightly at the moment. Keybank goes to neutral on the stock. Some concerns, margins are close to a nearterm peak and Revenue Growth could decelerate in 2024. Shares having their worst day since may. Although it was in the 80s to start the year. Its had a strong year, nonetheless. Were about two hours into trading. Hasnt been pred ever since we got another big jump in treasury yields on the back of stronger job openings numbers. Lets go post to post with bob pisani. Were at the lows for the day. I want to give you an indication how the jobs report affected things here. The builders went straight down here. Dr horton was 106 at the open. Swivel around here and take a look here. Heres an intraday chart. 106 at the open. This is dr horton. Now were down to 102, 103 or so. This is the impact you have on raising rates. The problem is the narrative is confusing. Were worried about jobs are too strong, the fed is going to keep raising rates. You think economically sensitive groups would be holding up very well but they havent been. I keep talking about the banks are looking terrible. The regional banks. Keycorp is not far from where it was back in the old days back in may or so. Its just above 9. Now just back to above 10. Thats not looking well. Bank of america at new lows. Cyclical sectors, economically here. Freeport was 45 just a little while ago. 45 back in july. Now its 36. The strong dollar is having an impact on anything priced in dollars. But you get the point. Its a little confusing exactly what the narrative is. So, you turn around and you think, okay, were worried the economys too strong or maybe were worried its too weak now. Maybe other things are going on. So, we lets buy other stocks. Lets buy consumer names. How about smuckers . No, 52week low on smuckers. 52week on campbells. 52week low on general mills, gis. What is the narrative were trying to convey here. Dont even get me started about other things. Besides the dollar you have oil. Oil fuel costs are about 30 of an airlines where overall costs. Labor is similar. Youve seen oil go from 70 to 90 and its killing airlines. Alaska was 50 in july. Now look at it, 35. As oil went from 70 to over 90, alaska went from 50 to about 35. You can see the impact that this is having. So, again, mike, the narrative, very tough to get exactly straight because there stocks are not exactly acting in line with a perfect narrative, as you well know. For sure. A little high fear out there with stocks and bonds selling off together. Well see if we can sort any of it out here. The 10 and 30year yields the highest since 2007. Our next guest says the current worry is escalating federal bu budget. That worry has been the bond vigilantes entrance cue. Joining us, ed yardeni. Its good to see you and have you thank you. Articulate, i guess, the sort of reiteration of what you were seeing back in the 90s, although i wonder about something. Theres no doubt about it, the supply concerns have been very heavy on this market. As soon as the treasury announced its issuance schedule back in july, it seemed like we released higher in terms of treasury yields. On the other hand, we also had the fed say higher for longer for the millionth time. Right. And we got some relatively firm jobs data this morning, in the form of the jolts report, and the yields responded to that, too. Its almost as if everything is pushing in the same direction. Yeah, i think thats true. And, look, if you allow me for a second put an optimistic spin on all of this, the reality is, were kind of going back to normal. Before the great financial crisis through the great virus crisis, which was the new abnormal, we had Interest Rates historically extremely low during that period. It wasnt that long ago when Central Banks were trying to get inflation up to 2 , but beware of what you wish for. Here it is well above 2 . Back before the great financial crisis, the bond yield was 4 to 5 , which is what were back to right now. The risk, of course, is that some of the forecast is going to go still higher, debt crisis is a realistic one, a serious one. To your point, the bond yields at the 10year maturity at 3. 75 in july, you could sort of back out and say, thats the wrong spot for bonds if we have a 5 to 6 nominal growth rate in the u. S. , if inflation is still 3ish percent right now. Maybe theres nothing strange about the levels were at but the velocity does unnerve the stock market and it makes people question whether theres Something Else out here in terms of just the disorderly selling of bonds thats under way right now. Mike, i think there clear is and you mentioned it, the bond vigilantes arent happy. The bond vigilantes have been asleep for a long time because inflations been so moderate. As a result, the conclusion was, well, fiscal and monetary policies arent all that excessive. Now with inflation kicking up here, with during the pandemic environment that we saw basically an experiment in modern monetary theory, helicopter money, money just kind of raining down on peoples deposits, and that was accommodated by easy monetary policy. Monetary policy was reverse course. Meanwhile, fiscal policy has gone the other way and way too stimulative. And bond vigilantes are being vigilant again. Theyre saying cut this debt substantially other were going to raise rates that will clobber the economy and then what are you going to do . I made that point earlier. The question is, what are you going to do about it . Its going to be a pretty high bar in congress to actually do anything about it. First of all, they can look at the move in rates and say the fed is raising rates. Its not immediately clear its a pro test of the deficit. If it does become clear, what do you do . They can barely keep the government open and keep the u. S. Paying its bills. You think theyre going theyre going to take an axe to Discretionary Spending . Well, i think thats where the debt crisis scenario becomes a risk to the environment weve been enjoying, which is a relatively stronger economy. The risk is that we get to bond yield levels that just really arent affordable for the private sector. And in that scenario, its conceivable that there would be a recession. As you said, what do you do then . You cant increase outlays and cut taxes when thats exactly what got you into the predicament. Wont the fed then just have to buy bonds then . Well, i think i think one can see a scenario where the fed is no longer doing quantitative tightening. Sara, for all this talk about quantitative tightening, the feds portfolio actually shows an increase in their holdings of Treasury Bonds of ten years or longer. I think that indicates that even theyre concerned about whats going on here in the bond market. They dont want to rile it up more than its already been riled up. The message to the fiscal parties is youre out of control and you have to get back in control otherwise the bond vigilantes will maintain some law and order. Well see. I have to say, this economy has shown less sensitivity to higher yields than many expected, up until now. Well see if that can continue. Thanks. The stock market is telling you, cant continue. Were back to june 1st levels. Well see. But losing fast. For sure. Kelloggs cereal business now trading as a separate company. The stock is down double digits since yesterdays debut. The ceo is going to join us to talk about the companys prospects next. Another spinoff this hour to talk about. Its been a whirlwind start to the week for kelloggs. Officially branding at kellanova with the thats the snack business. The cereal business now known as wk kellogg, becoming a Standalone Company trading at the nyse. The stock down yesterday, continuing the losses today. Down about 5 . Tough market. Here with us at post 9 in a first on krcnbc interview is wk kellogg ceo gary pilnick. He brought a lot of characters from cereals we know. Welcome. Thank you for having me. So, youre getting rid of pringles and poptarts and just focusing on cereal. What is that going to allow you to do . That will allow us to be a Stronger Company because were independent. At the end of the day, everything we do is in service to cereal. We we have a strategy to create none of the key pillars would have been done put for the spin. Now we get to make decisions with a singular focus on what is the best way to invest in and drive the cereal for wk kellogg. What does that mean . Does it mean innovation, acquisitions . Its a combination of five separate businesses. At the Kellogg Company we had a business in the caribbean, canada, food away from home that was scaled up across seven different categories, bare naked and u. S. Retail. All that will come together. Think about the opportunity to harmonize across the business, but also scale up big ideas. We get all the consumer Customer Insights under one leader who can drive the business accordingly. Another place we go to is for focus. We have a great sales force. Its well known within the industry and it sells several different categories. Our sales force will have the same coverage. Theyre only selling cereal. In the moment of truth, our cereal salespeople, theyll understand that category as well if not better than everybody to help convert shoppers into buyers. The last thing ill go to is our ability to invest and use our Balance Sheet the way we want to use our Balance Sheet. We want to invest 450 to 500 million to modernize our supply chain. Now, thats the centerpiece to our plan, to drive expanded margin. It should also help our top line as well sdmra isnt cereal a tough category . Its been in secular decline for years now, hasnt it . Cereals a terrific category. Its a very competitive category. Always has been. There are tremendous competitors out there. Great branded competitors. So, yeah, this is not going to be easy, but we know weve got the strategy to go after this. Our view is because were going to be investing the way were investing, we think the company that invented the category can do something pretty special going forward. In that regard, though, 100plus years in this category, cereal over that period of time, i mean, it started out as being kind of like a health food, right . I mean, that was the idea. And then its waxed and waned in terms of its perception of healthiness and if thats what you want to prioritize in your diet. Do you wait for it to come back into fashion or for customer habits to change . We have a portfolio that hits a lot of consumer needs. We have taste, balance and health and wellness. Were the leading brands in each one of them. We have something for everybody. I would also say, i believe theres a misperceptions about the cereal category. Its not a monolith. You walk down that aisle, its durable, big. Its as big as we ever remember, that category. Theres not one adjective to describe an entire cereal category but there are some misperceptions. Its a healthy, nutritious option for consumers. Tony the tiger, frosted flakes, the fruit loops, i grew up with these but theyre sugary and i dont feed them to my kids. We have been taking out the sugar and double digit declines of sugar in those cereals. Cereal leaders get no more sugar in their diets than noncereal eaters. They also get anoncereal eaters. They get more of the nutrients youre looking for. So i think you should feel good about serving it to your kids. I dont know if its part of your plans, but i know the obscure history a fourth Rice Krispies guy, his name is pow. We have snap, crackle and pop. Our Family History but we love snap, crackle and pop, and the lost brother. What about the debut . Its obviously a tough market, food stocks have been hit hard on rate concerns. What are you hearing from investors . When we talk to investors, i think theyre intrigued. We call ourselves 117yearold startup, a unique expression. We think theres a unique opportunity in the food space. Not a lot of Companies Say were going to exit at a 9 ebitda margin and expand margin by 500 basis points. That is a unique opportunity to drive considerable value, and we think we can do it. There are concerns now about disinflation in the category, Pricing Power for so long. Now disinflation is good on the cost side but not as much on the sales side. The way we look at it theres been unprecedented pricing over the last couple of years, years of pricing in two years, 30 or more pricing. The elasticity still is not at historical levels. We all hope and believe that inflation is starting to moderate, so i think the future will be different than the past. Were confident we can drive through innovation, through our brand buildings, through the great foods we make. All right, gary. We look forward to watching as you start on this journey. Thank you very much for joining me. Enjoyed it. Nvidia looking to take on amazon and aws. The details on that after the break. Every day, businesses everywhere are asking is it possible . With comcast business. It is. Is it possible to help keep our Online Platform safe from cyberthreats . Absolutely. Can we provide health care virtually anywhere . We can help with that. Is it possible to use predictive monitoring to address operations issues . We can help with that, too. With the advanced connectivity and intelligence of global secure networking from comcast business. Its not just possible. Its happening. With your hearing, if you start having a little trouble, youre concerned that its going to cost you money. To this day i only paid what i had to pay for the device. When i go back everything is covered. Theres so much youre missing by not having hearing aids. well find you a hearing aid that fits your lifestyle and budget. Unlock your riskfree trial during our limitedtime sounds of autumn event. Call 1800miracle to book your appointment today. Shares of nvidia down about 8 in the past month as an aifueled rally fades, but the company is reportedly looking at a new business ven youre that may help and threaten the major cloud players. Jensen huang wants to make sure it stays that way and key to that strategy is the cloud where amazon aws, microsoft azure and cloud. Nvidias ambitions own the ai ecosystem and expand could put it in direct competition with them. Nvidia has talked to at least one data center to power its own Cloud Service which has been in development for a few years that would cut out the middleman, those who are buying up nvidias ai chips and integrating them into their own infrastructure and a significant shift in nvidia strategy of working within the existing data centers of microsoft, google and oracle. Most Ai Developers today access the gpus through the hyper scaler, the big cloud players. Nvidia would make sense in that it could give nvidia relationships with those developers. Instead of renting compute power from microsoft or amazon cloud units, customers could theoretically go directly to nvidia, deal with an nvidia sales team that might, by the way, have a more comprehensive solution. It could be less expensive. Raymond james estimates it cost nvidia 30,000 to make an h100 chip it sells for upwards of 25,000. That is a lot of room for margin that could give it the Pricing Power. For microsoft, amazon and google, businesses switching away from their infrastructure would further hurt growth at a time its slowing, especially aws. Youre looking at a trajectory of sales the last six quarters or so. Its not a surprise here the cloud giants are developing their own ai chips to counsellor nvidias dominance and their reliance this is just one report. It is a fascinating dynamic, though, that will play out in some shape or form and could keep nvidia on top of the ai arms race and make it a significant player in cloud. A lot of room to grow there. For sure, dee. Clearly you mentioned the possibility that if nvidia were to move to compete with its largest customers, those customers would try to manufacture chips and become vertically integrated as well. Nvidia must be pretty confident those companies would have a hard time, that it has the advantage in terms of not being able to have its chips replicated. I guess thats a major question. Is nvidia ready to go out and compete in a significant way with these hyper scalers . In a sense it already is and can do this, but how important are those relationships . Its hard to tell. We talked about and tthropic an amazon. You can imagine that its probably relying on those nvidia gpus as well. This is what amazon and google are trying to do. Theyre developing their own custom ai chips to reduce the dependence on nvidia. Deirdre, thank you. Not a lot of headlines about bonds being jolted this morning. We got higher job openings. 10 year, 20 year, 30 year shot up. The narrative, mike, higher yields increase the chance of a hard landing and the fed will have to do more, keep them higher longer. 4. 8 yesterday. Last weeks selloff seemed to stop short of some of the real test levels in terms of the vix levels. 4,200 is half a percent away, would be about the 200 interday moving average. And then also the volatility index, were on the verge of 20, we havent been there in several months and stopped short of there. Thats the fear level. The demand for hedging down side. The big question now is where do yields top out. That will do it for our coverage. Over to scott wapner at post 9 and the halftime report. All right, sara, thanks so much. Welcome to the the halftime report. Im scott wapner. The relentless rise in rates and what it means for stocks as several of our Committee Members make key moves in their portfolios. Well tell you all about that. Joining me josh brown, stephanie link, jim lebenthal. Youve seen here down 1. 25 , the s p down. What a day for the nasdaq. Rates up yesterday. The nasdaq was hanging in as there was a bid to the mega cap names. Not so much today