Ahead of tomorrows key inflation data. Amazon the first record close since 2021. Thats one day after hitting a fresh 52week high. It was fresh, jim. Lets begin with the ongoing ai revolution. Last night on the social media platform x, elon musk weighed in on the Rapid Development of Artificial Intelligence. My guess is that well have ai that is smarter than any one human probably around the end of next year. And then ai the total amount of compute of ai i think will probably need all of humans in five years. Well get a lot more today, jim. Google cloud ceo keynote at note. I love tom curran. Hes been doing a good job. Dont call him tom. I will not. I spent a lot of time at ttc, the nvidia conference. We talked so much about when theyre going to be smarter. They are already. Surprised what musk said. One of the things that jensen said put your 100 smartest people together in a room and its smarter than they are already. Its just smarter. By the way, anything that can be done physically, it can do better. You keep saying this as if its already here. I made it up because i have nothing to say at 9 02. So im going for about. About the bartender who couldnt make your drink the bartender was an idiot. I was with the people that programmed the bartender. Hes going to get much better at his job. Hes not using the blackwell. The tie is good. Why are you looking at the tie . We had this conversation. I want to move on to the next one. When you came back you seemed much more concerned, similarly perhaps to mr. Musk, about what this will mean. Every time i ask you, all you want to talk about is the fact that they have a robot. The bad guys i think might be able to figure out how to imitate president obama using it. You hear it and you would be saying something negative about biden, and its made up. Its done by the chinese or whoever. Yesterday the commerce secretary said something about bioweapons. You think i heard it . I know. It was hard to hear. I think the guts of this is whenever you say anything, what i just want, people say guardrails. Theyre guardrails. Well, where are the guardrails during the great cyber hack of all our Health Care Records . The bad guys do not where was the guardrails when they shut down mgm grand . The guardrails only work if youre a good guy. Thats what im core read about. I think the bad guys might be able to do some things that we dont want. I think elon musk shares that concern to a certain extent. It hasnt stopped him from moving forward with his own efforts in terms of ai. It is a race in many ways still. Race condition under way in terms of competition between alphabet and google which was way ahead with deep mind, but had concerns then about the development of this technology in some areas. Mr. Musk has been concerned and has criticized the company he once helped to found being chatgpt or i should say open ai, chatgpt being the product. Here we are. If hes right, everything theres going to be genuine Artificial Intelligence. What happens if we try to make money off of it . We talked about thomas curran. That dang philadelphia accent. Thanks, mom and dad. We just found out that arm is going to be the backbone of google. The wall street journal story developing inhouse chips. I think thats incredibly good for arm. In the last quarter, broadcom was a big beneficiary of google in terms of making their own chips. Broadcom helping with that effort to create your own chips. Arm is already with microsoft and already with aws. So arm is the winner this morning as far as i can see. Broadcom, jpmorgan discovered there was a story i broke last week. I would buy arm on this on the cloud talk. I would buy arm because theyre in microsoft and in aws. That is big thats a big take. Now you try to be who to take it from . Possible from amd . I think they take everything from pad, intel. A shared owner. Yeah. I was confused about the commerce secretary. Obviously is an american gem. They also had 8 billion in overruns. You want to make sure they can repay the u. S. Meantime, some of the other google headlines today talk about expanded partnerships with crowd and palo alto. Crowd is amazing. Theres one where they really are trying to palo alto does on prem and also the cloud look at the lineup. Finding out about ulta versus sephora. That survey is so big. Kurtz is fantastic and is very critical of microsofts socalled security. I havent put microsoft on after kurtz savaged them. You cant savage anybody. Come on. This is cnbc. Alphabet shares recovered from that brief but fairly significant decline when we discussed a great deal how their monopoly in search might be truly at risk, and would they be able to move quickly enough to deal with that. You know what that was about . The stock came right back. That was some of the parts. That was youtube, laura martin saying it could be worth about 3500 billion. Search, the tick has lost by maybe. 2. I thought it would be much more. Its early, early days in terms of concern they will be sacrificing share. Think about what you asked me and what i gave you. Why did it come back . I said that . Thats the truth. You think paid ai search had anything to do with it . Thats been read both ways. Not yet. What i think is youtube is the hidden gem here. Now, teams teens . Teenagers. They spent an inordinate amount of time on tv, web, and they love google. Instagram, we ought to cover this, is gaining because of reels and tiktok. The teens hold the key. Theres a lot in there regarding tiktok, instagram, nike, lulu. Nike still maintains number one but losing shares. Lulu losing share. Hoke ka picking up share, dutch bro. Hoke ka is picking up shares with teenagers, not old guys like me . No. No one cares about you. No, they dont. They already know what you want. Davids mind is so made up, hes not what the teen surveys at all. He doesnt care sephora is taking share. You think he knows what sephora is . Typer, you say it moves stocks . I think its fantastic. Celsius moving up over monster. Celsius is a publiclytraded company. By the way, birkenstock did quite well. Really . Yes, really. No, next lie. Vf worp ncorp not doing well. This is selfreported i thought the teens were gloomy. Look, i think like everybody like some of the people at the end of the show thats before us, squawk, the teens are down. Its not just tiktok brainwashing because theyre switching to reelz. Maybe because they dont have 401 k s. They sdront 401 k s. They have youtube. And employment. You can get a job if you want. The notion of the survey is figure out forward thinking where the stocks are going to go. I dont want to own crocs after this. I dont want to own lulu. Do you not want to own nike as well . Absolutely sell. Sell, sell, sell. Like key is losing share. Youve turned on them. Did you see the stock . That actually makes sense. Nike lost share in athletic brand performance. Nike gave the clothes of the nfl away, the worn jerseys. To rubin. To rubin. People are not happy with it. Look at nike. This is the survey is showing you what thats about. Under armour, also, not good. Hoka many, many years ago when the teens turned on under armour. What am i . A dictionary . You and i both know. You tweeted about this this morning and i came in with my team and we pulled this thing apart. We think this is one of the most market moving surveys that we get. Its generally considered to do some rigorous work. The backdrop of viewership for the Womens National championship game. Did you see those ratings . 18. 7 million. Unbelievable. The biggest basketball game, pro or college, men or women ever. Is that right . I watched. At the peak of espn when they had 100 million people, my old friend john walsh, come up with a plan to have an all womens sports station. He said one day people will watch that more than they watch men. That was 15 years ago. Boom. Right as rain. Since 2019, any basketball game. But for womens its a record. I think it is a very positive thing, but it also is indicative ahead of the olympics what we want to watch. Im out on thin ice with you and i dont know what to do frankly. I would love it to be 8 59, like superman when they ran the movie. It goes backwards. You think its not going well. Unfulfilled . I feel like im on quicksand with you. I dont know what to do. Weve got a threeminute break, maybe 2 1 2. Well take care of that. Well also talk to matt boss of jpm. This time aeo upping pbh. Interesting action in europe which well talk about in a moment. Squawk on the street is back after a break. My name is oluseyi and some of my favorite moments throughout my life are watching sports with my dad. Now, i work at comcast as part of the team that created our ai highlights technology, which uses ai to detect the major plays in a sports game. Giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. If youre hoping for fed rate cuts for the fed, maybe dont hold your breath. This economy doesnt need them. Just be glad we arent getting anymore rate hikes. Yikes thats jim on mad last night saying the economy doesnt need cuts because rates fall to the lowest level sinceoctober with new inflation data coming up tomorrow. Of course, cpi, ppi the day after. These yields are just reflecting better growth. Yeah. I had ferguson on last night. A lot of people feel thats highend plumbing, no, only abil about 15 of their business. Its data piping. I was talking with the ceo about what Gina Raimundo said. They want to hire 20,000 people. He said, look, we dont have the people to do this. We dont have the plumbers to do it. We dont have the technicians to do anything. Were out of people. Thats what i think could be a very big issue, especially when you have travel and leisure highing 50,000 people, health care hiring 70 where are these people going to come from . Remember we asked Lael Brainard about the number of permits. They wont tell us. Its a number in an Election Year youre not allowed to know. You have to bus people everywhere, wherever there are some trades people, theyll bus them in. I think the idea that we are that this is all federal blasted. When you have tsm building something for 65 billion, thats federal. The federal government overcreated jobs. It is running hot. Morgan stanley today, im sure you saw katy hubertys spot, its titled do we spy an infl inflection . It measures shipper sentiment, highest in 11 quarters. Bullard saying the base case is three cuts. Look, i love this economy. Dont get me wrong. This economy is robust, doesnt have all that information. But the idea that the people keep talking about cuts, well, show me where we can find workers. We have no surplus of workers. We have 3. 8 unemployment. Who were these people who make these numbers up . I love bullard, but honestly, you want to go through the roof and have we have to import workers from other countries . David . Well, we already are. But thats not thats more people getting into the country. And working. So in a way we are importing their workers. They dont have jobs where they are, but they get them here. I would argue the reason wages arent going through the roof is because we have a level of immigration that is well underreported. Even though technically many of them are not able to get employment, right . Which is an issue. They get green cards and you high automatic data and they look into the green card. So there is a level of authority. But i understand a lot of resta restaurants. Sure. Meantime well get cramers mad dash, countdown to the opening bell. More on what the markets and the rate discussion tomorrow. One more look at the premarket as were hanging on to gains. Dont go away. Ysis, help make trading feel effortless. And its customizable scans with social sentiment help you find and unlock opportunities in the market. E trade from morgan stanley. With powerful, easytouse tools, power e trade makes complex trading easier. React to fastmoving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you wont miss an opportunity. E trade from morgan stanley. Do you have a Life Insurance policy you no longer need . Now you can sell your policy even a term policy for an immediate cash payment. Call Coventry Direct to learn more. We thought we had planned carefully for our retirement. But we quickly realized we needed a way to supplement our income. Our friend sold their policy to help pay their medical bills, and that got me thinking. Maybe selling our policy could help with our retirement. Im skeptical, so i did some research and called Coventry Direct. They explained Life Insurance is a valuable asset that can be sold. We learned we could sell all of our policy, or keep part of it with no future payments. Who knew . We sold our policy. Now we can relax and enjoy our retirement as we had planned. If you have 100,000 or more of Life Insurance, you may qualify to sell your policy. Dont cancel or let your policy lapse without finding out what its worth. Visit coventrydirect. Com to find out if your policy qualifies. Or call the number on your screen. Coventry direct, redefining insurance. Even if you live in a bubble, you cant stop workplace accidents. So talk to your agent about workerss comp insurance from pie, or visit pieinsurance. Com. Safety first, then pie insurance. Lets Start Talking a little stocks, shall we . And get to jims mad dash. Opening bell seven minutes from now. We talked a bit about the move in gold which continues higher. Bitcoin also has had quite a nice rally as well. Yes, it has. By the way, commodity, also, in general. Right. Theyve had a big move. If you look at this, you say why havent the stocks contributed, and why did they just get started now in the last few weeks . The answer is their finding costs have gone up dramatically, from around 800 in 2018 all the way, david, to 1,380. David, i know you want the fabled head and shoulders. Thats not procter gamble. The reason these havent kept pace is because they cant find enough. Because they cant find enough, thats jacked up the price of bullion. They used to replenish a percent per year. Costco, try getting the gold. We try every week to buy costco gold on the website, three times a week, sold out, sold out, sold out. This is going to add 1 . I want to go back to the miners. You can take a look at the gdx. Why . The metal keeps going straight up are they going to start catching up . Yes, the delta has been reached. The cost at 1300, if you get 2600 a couple reasons its gone up, you cant use arsenic. Caterpillar trucks go up, labor go up, environmental damage go up, insurance go up. Thats how they went from 800 to 1300. 1300 making a lot of money with gold where it is. You cant find gold at costco as much as i try. Thank you for that. Please have a deposit box. Dont put the gold under your mattress. Bad guys know that its there. Its very heavy though. Weve got opening bell a little more than four minutes from now. Dont forget. You want to catch us any time, anywhere, by listening to and following the squawk on the street opening bell podcast. Trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. Get an expanding library filled with new online videos, webcasts, articles, courses, and more all crafted just for traders. And with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. Trade brilliantly with schwab. Amazon is aiming for its first record closing high in almost three years, jim. Got to go back to july of 21. Theyre doing a lot of things behind the scenes that are excellent. Still lowering the cost of things coming to your house. Beginning to see an inflection in europe because of prime video which is extraordinary. Turns out thats a way to be able to get europeans. Europe is very, very important. David, there is a surge in Amazon Web Services where, remember, they were down, down, down. Then its no longer we say down, down, down, the growth rate was coming down. They dont talk about it much, but its good. I think the work theyre doing with nvidia is extraordinary. Explain what you mean when you say that. They are the biggest adopter of the new chips which are gigantic. The super computers, amazon, adam sal lipsky who runs aws said [ bell ringi ]. The big board, half nia at the nasdaq, the u. N. General assembly ahead of the u. N. Sustainability group. Kind of interesting to chart amazon versus apple in the last, say, six months because 165. 67 would take you back to the october low. Apple is a little exhausting. What were getting is stories saying the Service Revenue, the app store is better in the month of march than it had been january february. I think the Service Revenue is going to be good. They have to embrace the business. Steve jobs didnt and so far tim cook hasnt addressed the b2b. Thats where vision pro which not a lot of people are talking about, thats where vision pro could shine. People keep thinking theyll do the deal with google. That was supposed to happen in seven days, and hasnt happened. I dont know whats going on at ap ul. I continue to say own it, dont trade it. We need a phone that has ai in it like samsung. You just wait for the leaks to come out about june 10th . Yes, you have to. I know its tough. I know there are people who say why should i hold this thing. I think it should be held. I have great faith in tim cook. There is a bold case not embraced by that many, but i did run into one yesterday, significant holder, everybody is underestimating apple and siri. Theyre going to come with a cycle that blows people away. Im looking at my notes here. Siri has got much more by the way, apple has your location and your text messages. They can use that for training their ai dont underestimate what they will do once they do it. Thats why i say own it, dont trade it. You dont know what theyre going to release. You know siri, from the people i deal with, siri is going to be far more fers tall than alexa. Alexa listens to me, i hate that. Listens to me when im talking to my wife. Siri woke me up this morning at 3 20, very politely. A little nudge. All that said, even if this bold case is correct, there could be an air pocket between now and then because of china demand and concerns there. Dan ives embracing that a little bit as well, one of his endless notes about so many different companies. China is not good. Maybe craft beer. Secretary yellen, having a beer made with american hops. I cant relate those two, molson if you believe the bull case is being underestimated in terms of what it will be able to eventually do, in terms of a product, in terms of fueling a huge cycle and upswing in terms of iphone sales, there there still could be between now and then bad news in terms of an earnings report. I agree with that. Apple is still very much on its own. They werent there at the gtc, nvidia. Everybody was there. Tesla lights nvidias chips very much. We know that from musk. C carl, every time you underestimate apple, youve got to send me an invitation to your funeral. I dont care what dateit is. I dont care what it is. You go against apple take a look at since 5. 00. Theyll come out and what will happen is theyll say china was weak. Oh, wow, we knew that. Lets buy the stock. By the way, alphabet was the one that we trashed mercilessly. Look at alphabet. Every time you trash a mega cap, david, youre left in a dust. It almost doesnt pay to get negative. Again, we were having those debates for a handful of weeks there. It didnt last long. It may once again be revisited. There is a longerterm question in terms of the viability of alphabets monopoly and search. The stock came right back. It did. Ill Say Something that is near and dear to davids heart. The fibonacci complex of 157, 158 theres five fibonacci levels thats going to hold this. Are we talking apple . Five when i twoent person net, they knew it was a fibonacci combination right there on cauliflower. Cauliflower . What is it . Algebra . Medieval mathematician, fibonacci, pine cones, sea shells, cauliflower and stocks. Is there a fibonacci on tesla at 170 . No. Right now the only one that has a floor of all the meg caps right here is apple. This floor, if im right on the fibonacci, this is one of the strongest floors weve seen in some time, 168. You want fibonacci to make your floor. He was an incredible floor maker. Thats floor decor. I like the stock, upgraded 105 to 115. On a floor made by fibonacci, you know youre not going anywhere. Even during an earthquake. Fibonacci has held up. Yes, it has. Carl, it has. I use it. You do . Yes, i use it. Its been right far more than its been wrong, fibonacci. I dont know why. We dont know why a medieval mathematician would be of value right now. Im telling you, the 168, there are five floors right here. All right. But not for tesla. We mentioned Morgan Stanleys adam jonas today saying we were calling for ridesharing in 2018. That was a mistake. A decade later were still waiting. August 8th will offer some important clues. I love the line which says its both long dated and volatile, which i thought he was trying to get his cake and eat it, too. I like the fact that he ate some crow. Still a 310 target. Hes a little off on that. He upgraded ford, too. Although ford has been creeping up. Can i just clarify 25,000 car exists today, byd makes it. You see the chinese cars being stacked up in europe . Can i just revisit this tony sig nagy, i dont know him. Hes had a 150 target on tesla and just went to 120. I wish he hadnt done that. Wouldnt be it great to declare victory . I think at this point were starting to discount he doesnt have a small car. Were discounting that the cyber truck is a complete and utter bust, a bust. You think the stock price at this point is discounting a lot of bad news. I think it is. I think like apple, when you have to see the chinese quarters, you have to get the news about the cash flow. The cash flow is horrendous here. Right. Again, we already got pretty bad news on deliveries last week. But to your point, we havent seen the underlying numbers in terms of what thats going to mean for teslas company. Google, when we get the numbers on search, the stock will lose points. I want to hear what Thomas Kurian says, if they can do 50 billion in google cloud i like it. Its good. Its very good. Very good, 50 billion in google cloud would be very good. Worth a few fibonacci levels. You know how right im going to be on apple. Hes going to eat crow. Im the one reading the notes right now. What are you talking about, im going to eat crow . Lets go to dinner. I made the reservation. I know you did. Jim,we mentioned aeo, upgraded by matt boss at jpmorgan. How about pvh . Everybody hets pvh and he comes out and likes it. I read the piece yesterday and cogitated on it today. I said, matt is taking advantage of some of these declines and getting bullish. I like that. I think pvh had weakness in europe. Ralph lauren, by the way, is having a great year. That was brought down by pvh. Thats crazy. Ralph lauren is fantastic. 17 times earnings, great growth. Fabulous growth, ralph lauren. Coming down, in a oneyear, come on. Up 50 . Vf corp, negative on that. Ralph lauren, its a different level, isnt it, in terms of Tommy Hilfiger versus ralph lauren . Yes. Tommy hilfiger is having a really goodyear and vf corp is the one im worried about. Worried about vans, north face. Tough piece in the journal the other day really tough piece. Bracken dallas came in there, he was fantastic at logitech. Remember they sold denim. Its denim heavy, denim head to toe according to michelle goss. Thats why levis has been terrific. Levis, ralph lauren. Matthew boss raises pvh. Levi is good, van is bad. A guy named bracken darrell, you cant bet against him. A man with two last names. If he ever runs black decker my family trust owns black decker. Donald allen is going to pull this thing out. Another twonamer. Bracken darrell with two last names. Although darrell could be a first name. David is doing his own fibonacci work in his head and realize that apple holds at 116. Looks so good. Im adding a sixth fibonacci level it looks so good. Jim, what do you do with freeport now . People like the commodities. You buy copper now after that pair parabolic move, noment you have to say, like karen cramer would say on the training desk, you idiot, you missed it. You idiot, you missed it. Right. It was always very poignant when you got you idiot you missed it. Then you would throw a phone at somebody. The tphones those days, you could toss them. Now youd kill somebody. And it was attached to something. So i hit the guy on the head with a bottle. He came in at 6 05. He had to be there at 6 00. I said he was late, he had to go home. Worth touching on djt, basically back to where it debuted in march. Still a great it would be unbelievable if you could sell there if you had a lot of it. Still cant borrow it effectively. Theresf handful of there. If you can hedge your warrants, but its difficult to borrow. That said, its almost assured basically a certainty at this point that former president trumps company 90 is his, hes suing, by the way, his partners, to get the other 10 , will get the 40 additional shares. We were reporting on this and went through the math, talked about the fact that even though everybody wants to seem to come with one number, im working with a fully diluted share number and the 40 million additional shares hes going to get, stocks staying above 2750 after the despac. Thats done. Which needs more, paramount or trump media . Thats a good question. Paramount is 8 billion, trump media has less the plan with paramount would be to raise 3 billion if, in fact, the deal that they are now in exclusive conversations about with David Ellison and his partner red bird happens. The plan, as i have explained, would be buy out national amusements, raise 3 billion in equity. Larry ellison, davids dad, would still be diluted to shareholders. Who leads the special committee . Its a couple of directors. Theyre being advised by wellknown investment bank. You want to create a record if youre that special committee, a really good strong record to withstand what is going to be an avalanche in litigation that youre inevitably going to get. You want to make sure youve got a great record that says, hey, we looked at everything. We did the right thing here. That takes the place really of a vote from the majority, the minority, if you have a special committee doing the work that it is doing. By the way, it may take a while. Theyre in exclusively. It doesnt mean theyll stay there. Its not clear that theyre going to get a deal done in the next 20someodd days of exclu exclusivity. Doesnt mean you cant extend it. Well keep an eye on paramount shares, up fractionally. Disney posts peltz, back to work. Hugh johnston. Cfo. Jim, now its just about delivering and executing. Its making sure the directtoconsumer gets to the level of profitability that has been expected by the shareholder base. Any prospect that sports are looking better. Good numbers away from the snfl . Wouldnt that be something . Espn is still a very important contributor to the overall Walt Disney World earnings. Still somewhat early days for who is going to replace mr. Iger. Hes not stepping down for another 2. 5 years, but you do want somebody in the role a lot sooner. Gorman is going to do a good job on the search because hes a hitter. Ill come back to you. Own it here or not . Yes. I would own it. Peltz is out, i would own it. Whats that mean . I think nelson peltz i understand took a very big profit. However, pearlmutter still owns the shares . Per mutter is very charitable. Big supporter of trump. Perlmutter cancer center, made calls, raised about 500 million. Got Robert Downey hinting a return to marvell. So thats good. Its a big win. A big, big win. Ge aerospace down almost 2. Goldman assumes a buy at 190. There is reporting about a squeeze in travel capacity in the Airline Business because traffic is going to surpass prepandemic we think. Boeing deliveries and airbus deliveries, theyve kind of slowed. Yeah, they have. Take a look at the incredible action in rtx, greg hayes swan song. Thats thegood analog and not seeing any letdown. I remember positive with ge aerospace and really positive on all the other parts of it. I think theyre really good. You thought vernova was your top of the three . I think people dont understand the power of vernova. Down a lot from where it came public. The turbin numbers which david used to look at in terms of trying to figure out Service Revenue. Remember turbin numbers . Dont you remember that the tu turbin. Turbine. Not a turban, something im wearing on my head. Yes, i did look at those numbers, jim. The awesome acquisition. Suboptimal. Remember when they were going to make it so it was software. Remember what they said about that. Industrial internet. Remember John Flannery . Hes a red sox fan. A lot of deep tracks on ge this morning. Market continues to kind of sit on its hands a bit ahead of cpi tomorrow. Dow hovering above 5200. Watch bonds were pretty clean of fed speak data today before the inflation print tomorrow. Tenyear holding 4. 37. Dont go away. Municipal bonds dont usually get the Media Coverage the stock market does. In fact, most people dont find them all that exciting. But, if youre looking for the potential for consistent income thats federally taxfree. Now is an excellent time to consider Municipal Bonds from hennion walsh. If you have at least 10,000 to invest, call and talk with one of our bond specialists at 18003764376. Well send you our exclusive bond guide, free with details about how bonds can be an important part of your portfolio. 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Do not miss the premier of cities of success, denver and boulder, thursday night, 10 00 p. M. Eastern time. Coming up next, it is stop adg thim. The all new godaddy airo helps you get your Business Online in minutes with the power of ai. With a perfect name, a great logo, and a beautiful website. Just start with a domain, a few clicks, and youre in business. Make now the future at godaddy. Com airo you know whats brilliant . Boring. Think about it. Boring is the unsung catalyst for bold. What straps bold to a rocket and hurtles it into space . Boring does. Boring makes vacations happen, early retirements possible, and startups start up. Because its smart, dependable, and steady. All words you want from your bank. For nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled. Which is pretty unboring if you think about it. Youre probably not easily persuaded to switch mobile providers for your business. But what if we told you its possible that comcast business mobile can save you up to 75 a year on your wireless bill versus the big three carriers . You can get two unlimited lines for just 30 each a month. All on the most reliable 5g mobile network nationwide. Wireless that works for you. For a limited time, ask how to save up to 830 off an eligible 5g phone when you switch to comcast business mobile. Dont wait call, click or visit an xfinity store today. Lets get to jim and stop trading. Were getting a lot of numbers that say pc shipments return to growth july and september will be new iterations with Artificial Intelligence built in for hp. I turn around and say my club has been buying best buy because i think best buy is the biggest beneficiary of return to growth, corie barry knows what shes doing. They have the terrific Samsung Phone theyre selling. Thats a buy. Youve been on this idea ever since microsoft announced that. I think its huge. I think the refresh is completely misjudged. They are building and building to meet the demand. The refresh is the biggest cycle, maybe ever. Because you have ai. Copilot. Crowd and elf. Elf we get to the bottom of whether all ta was bad or maybe sephora and. Well analyst microsofts ability to protect us and united health. Im tired of getting told from people what went wrong with me and then asking me for money for medicare. You feel like all your information is throughout. They have everything. They have everything. They have the hospital, the surgery. Well see you tonight. Well continue to watch amazon, see if they can get back to 188 aiming for an alltimeig hh. Dow down 72. Back in 3. So this is pickleball . Its basically tennis for babies, but for adults. It should be called wiffle tennis. Pickle yeah, aw whoo these guys are intense. We got nothing to worry about. With e trade from morgan stanley, were ready for whatever gets served up. Dude, you gotta work on your trash talk. Id rather work on saving for retirement. Or college, since you like to get schooled. Thats a pretty good burn, right . Got him. Good game. Thanks for coming to our clinic, first ones free. Good tuesday morning. Welcome to another hour of squawk on the street. Im Carl Quintanilla with david faber and Courtney Reagan live at post nine. Sara eisen is on her way back from beijing. A bit of a mixed bag today. Dow down 50, s p holding 4point gain. Sectors are mixed but tech leading the way as market begins to place some bets ahead of cpi tomorrow. Yields generally cooperating with equities today. Down across the curve with the 10year just south of 4. 38. And we are 30 minutes into the trading session here are three movers were watching. Tesla moving higher and turning positive on the month as ceo elon musk makes headlines arguing its only a matter of time before all vehicles go fully electric and ai will overtake human intelligence next year. Shares 40 off the 52week highs. Watch gold continuing to hit new alltime highs. Prices, of course, as yields head higher we talked about as were continuing to watch potential movement from the fed after the cpi report tomorrow, we are above 2375 per ounce for the price of gold. American eagle outfitters in the green, getting upgraded to overweight by one of the top retail analysts who will join us to make a case for the stock in just a few minutes. That one has been one that has kind of bucked the trend and held on for some time. Much to my surprise i have to say. Lets yields hitting the highest levels of the year ahead of a big Inflation Report tomorrow. Cpi with minutes from the feds march meeting. A host of fresh fed speak and earnings season is set to kick off again. All that means its time to talk to senior markets commentator mike santoli who joins us on set. Thats a setup there. Hard to give me a sense in terms of direction of what were seeing here. Somewhat directionless. Apprehensive market. Tired. Its been a whole 12 days since we had a new record closing high on the s p 500, which, you know, is, obviously, not a very long period of time, except for the three months before that we were averaging two a week. You were plugging higher, not had any pullbacks. Last thursday this 2 wobble. We havent been able to hold early rallies. Theres been a more of a rethink of how much we have the underpinnings of this market headed clearly higher. The leadership, you know, its flagged. The old leadership. And its been mostly fine because you have things like industrials and Energy Taking up some of that slack. I think theres tremendous confidence right now in the strength of the economy, the comeback in global manufacturing, and trade, and, therefore, the question is, is cpi going to let us treat good Economic News as good market news . Thats what happened in november. Inflation got down to a point where we said they dont have to kill the economy to get to inflation. And now were just kind of questioning that a little bit. So i do think that theres real twoway swing risk on cpi tomorrow and ppi the next day because if its cool, if cpi is cool and all of a sudden the feds clear bias to get a cut in here is going to be underwritten by the data, i think that, you know, the market will try for a new high. Otherwise were a little bit stuck here. Reflationary impulse in the market is strong and everyone paying attention to gold and oil. I think its worth looking at the Goldman Sachs commodity index, and it had this strong move, but were not even back up to last september levels. It doesnt feel as if were hitting the new key trigger points, although yields are pushing on that level perhaps. Do you think for the rest of the day well stay sideways as we await cpi . If i had to get, yes. It seems to if this market can get captivated. Its still rotating. Yesterday, small caps outperformed. Most stocks were up. The s p did almost nothing. But it was fine because you kind of had enough things supporting along the way. So there is a kind of a stubborn bid in the market. I know, you know, the flow folks over at goldman have been talking about theres this race to buy the first 1 or 2 . Thats literally the source of an edge in this market to be first to grab it. Until that pattern breaks, in a clear way, and, you know, the rules are rewriten in terms of how you should play the market, i guess were okay up here for now. Is also the jpmorgan note this morning from the desk that talks about an unwind of an s p put spread measuring in the billions, which would suggest somebody is counting on a cool cpi sflprint . You dont want to lean hard against the possibility of that. In quiet moments in the market like this when we are sort of waiting for the next known big catalyst, the focus really does turn to the tactical mechanical stuff like where are the exposures, you know, in the whole options array and what strike prices and why are we sticking around 5200 in the s p. That goes away if we get big new, important macro fundamental news and once we get to earnings season. For now it is kind of about, you know, whos got the slightest edge on a tactical shortterm basis. When it comes to leadership in this market right now, what groups are standing out, if any. Theres sort of quality cyclicals if i had to characterize what they are and thats a big subset of industrials is working really well. In general, cyclicals over defensives, but consumer a little more mixed in that. Consumer levered stocks are taking more of a back seat to capital spending. This morning it was like energy and semis the things and nonnvidia semis. We find a new favorite each day almost. Thank you very much. Appreciate it. Stay with us through tomorrow which were all on edge with the cpi report. Pippa stevens polling more than 6,000 teenagers with an average age of 16. Overall teens selfreported spending down 6 year over year but teen beauty spending hitting highs last seen in 2018 driven by growth in all categories with cosmetics still taking up the highest share of spend, fragrance is catching up. That said it does come a few weeks after ultas shares slid double digits when that ceo warned of a slowdown that was, quote, earlier and bigger than expected. The apparel front footwear spend down 1 , though a mixed picture when you get in higher and lower income earners and where theyre putting their brand preferences. Nike does remain the number one brand for many, many surveys in a row, but it did lose share in every category and thats the first time in several years weve seen that happen in this survey. Brands like on running, new balance, taking share in footwear. Lululemon maintained its spot as the number three abarrel brand but facing competition from dc brands and i have to say, ive been wondering when were going to see that with lululemon, just watching what some of the hip moms are wearing and the hip teens around my neighborhood. Ive seen so much alo yoga. Im starting to wonder if well see the cracks in lululemon. The teen survey does pick up trends well before we see them more broadly or data set can prove to us. What about this number of the teens selfreported spending is down about 6 . That is worrisome. They talk in the survey about which teens are getting money from parents and which ones have jobs and all of that, but i do think that is a little bit worrisome, especially after weve seen retailers warning for many, many quarters in a row, even after putting up pretty good results, but with this air of caution always looking forward. We havent seen it yet really take a hit in spending and maybe now this is it. Right. We just finished the retail reporting because of the way the calendar works, and maybe then in q1 were going to really start to see it and these teens have give us this notice early. The beauty stuff is fascinating to me and that elf continues to really be dominant. They have had success even on tiktok sort of virally with these products really catching a lot of steam. Its really helped them very much. I know the ceo is going to be on mad money tonight, but, you know, theyve talked about expanding their presence in target and in all of these different retail locations, and so theyre really doing quite well and theres such a good price point that even if some of these prestige brands start falling maybe elf is the way to play it and Piper Sandler is looking at that as an encouraging sign today. Its an interesting mix given the commentary from lululemon and nike and ulta. I know. And the costco miss in february. That got peoples attention, especially over the weekend. It did. And its again, kind of like what weve been saying, Retail Executives have been conservative for a while, but maybe now its finally coming to fruition a little bit here. Cpi is going to be so important tomorrow. Weve said it 100 times, but its truth for the Broader Market and spending and prices. Were going to stick with retail and our next guest is back from jpmorgans tenth retail roundup. Upgraded American Eagle and likes pvh we dont talk a lot about, jpmorgan analyst and retail hall of famer joins us now with the top pick. So American Eagle is fascinating to me for so many years, weve put American Eagle and abercrombie together as competitors. I think abercrombie has changed its brand and i dont think its fair to call them a teen brand themselves. Maybe hollister. But American Eagle continue to hit on all cylinders, well through the pandemic, the online is strong, store is strong. Whats their secret sauce . Thanks for having me on, first of all. Its Perfect Timing off the heels of our tenth annual retail roundup. We had 30 companies in new york. The overall theme i would say is two fold. One, the macro when you were talking about it, companies are talking about a stable u. S. Consumer right now, and thats very different, as you know we had supply chain congestion, we had two years of excess inventory, so companies are able to focus on innovation and investments to drive newness and differentiation. So i think what youre seeing is a real separation between winners and losers now Going Forward within this retail landscape. As you mentioned with abercrombie and American Eagle and even with pvh, theres two trends that i think have been building, but now really unlocking as were seeing this point of stability. Its denim and its active. But they both fit into this casualing me fwa trend that i think casual mega frtrend th fits in the postpandemic era which for us what simultaneously is happening at American Eagle and pvh is selfhelp. Youre finding companies can unlock efficiencies and have stronger bottom line profitability on actually the same, if not maybe just slightly greater top line run rates. Very interesting. And i just smpoke with the new ceo of levie saying den mim is having a point. I mean when you look at levie, thats on your list, what are you liking beyond the macro trend helping them . Both of the prior trends that i cited, selfhelp on the margin front, they have found efficiencies and transformed their business into a much greater direct to consumer company. Thats what nike right now is on the next leg from an innovation perspective, but also again, at the same time really focussing from a bottom line on profitability, so i think its that, plus now you have this category opportunity and unlock as michelle has taken over, but one of the things shes done is transform, or in early innings of transforming it not just as a lifestyle brand but an overall backdrop of a denim lifestyle brand, which i think is very important. Were a few quarters removed from the street discovering glp1s but a batch of reports looking at what the impact would be on apparel. Yeah. When you talk about active, i wonder if were seeing that crystallize a bit. Its great question, carl. I think the winners and losers from this perspective is what it basically does ill use the pandemic as an example 40 of americans waist size changed coming out of the pandemic. It actually was a very strong tailwind for a bottoms company like levies and at the same time if you think about active to me, it would be a really nice opportunity for lululemon because not only does somebody want to lose weight but keep it off and the active lifestyle as well as people want to be seen and so i think from a fashion perspective, its a real opportunity for companies that are fashion forward that are focused on newness and those investments and that would factor back to what pvh and American Eagle. I think the other theme you didnt touch on as well, courtney, at the start, value and convenience is still here. There was a definite theme on the consumer being stable, but you have a bifurcation. The low end is still under pressure. Theres a wealth effect at the high end. Value and convenience is your off pricers, t. J. Maxx, ross stores, burlington. I think the Dollar Stores as well. We like the selfhelp story at dollar tree and theyre starting to see a level of trade down, as the consumer is coming back for value. Which is interesting because for so long, i mean, after the financial crisis, i remember walmart was losing share to some of the Dollar Stores for the fill in trips. Walmart seemed to take that away. Are they getting it back . So dollar tree on breaking the buck and expanding the multiprice point is seeing an expansion of their total Addressable Market, which even if you go back to where you started with American Eagle and abercrombie, to me, the next leg in retail is all about the companies that can expand that Addressable Market and capture a new consumer. Abercrombie was the poster child for bringing in the 30 to 40yearold. Thats what American Eagle is moving forward with. That in my opinion is this expansion that we potentially see with the mega trend tied to casual. The question is who will be the winners and losers within there . Historically it has been lululemon and nike, but there are smaller players that are making inroads. I was just just to end there, i wanted to ask you about lululemon and the smaller players. Do you think that lululemon is going to begin to crede share in a meaningful way . Somebody has to challenge them in performance. Theres a lot of players out. Aloe in that camp, comfort players. Nobody has challenged lululemon yet in performance. Thats what is worth watching. I think lulu has captured the younger consumer. So far year to date they didnt necessarily appropriately consider that younger customer from an in stock perspective and inventory perspective. They did leave sales on the table. What to watch from a sustainable go forward basis is who can win in performance, sustainably and go forward. Matt thank you so much. We were able to cover a lot of ground. Great to be on. As we go to break a road map for the hour, getting ahead of the curve, what one strategist is saying as the markets brace for cpi tomorrow. Well get you ready. A look at riding the amazon rally as the stock aims for what would be its first record closing high in almost three years. Ahead, betting on march madness. Wagers on the mens and Womens College basketball championships, so much fun to watch, what sports books are saying about the winners. Squk t see iba after this break. Old school hard work meets bold new thinking. To help you see untapped possibilities and relentlessly work with you to make them real. [busy hospital background sounds] this Healthcare Network uses crowdstrike to defend against Cyber Attacks and protect patient information. But what if they didnt . [ominous background sounds] this is what it feels like when cyber criminals breach your network. Dont risk the health of your business. Crowdstrike. We stop breaches. Her uncles unhappy. Don im sensing anlth underlying issue. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. the price lock, the price lock. so, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for. Welcome back to squawk on the street. Markets Holding Steady ahead of a key inflation data tomorrow and thursday as well as the minutes of the last fed meeting and the kickoff to earnings season later on in the week. Our next guest says the market is fairly valued here but energy might have room to run. Capital markets head of u. S. Equity strategy laurie, target at 5300 joins us at post nine. Always good to see you. Good to see you. You wrote, feeling a little more neutral these days, but not bearish. Is that still true . Thats still true. I think theres a camp of, you know, really big optimists and a camp of big bears. Im not in the big bear camp. Ive been one of the more optimistic strategists and cooled my heels on the data and numbers. What would it take to get you more bullish. I think when we look at our valuation work in terms of where current Interest Rate assumptions and inflation rate assumptions are, the market looks fairly valued. I would need to see a moderation in inflation could do it. I think the other thing i really think weve got to have a little bit of a pullback in the market. Ive been saying that for a while, but we really see someone was focusing on Investors Intelligence rooenlts. Afii, the university of Michigan ConsumerSentiment Survey and expectations for the stock market, all these things are sort of creeping around alltime highs or at levels right below them where you see a pullback. I think that weve got to have a little bit of a breather in here. Where are you on earnings given a stronger economy which may mean that we do not necessarily see that lowering of rates . Where are you . Im at 237 and i think the street consensus is up to 3246. Its bumped up a combucks as people have got ready for earnings season. The thing i took out of my model versus the prior update, i dont have any buybacks baked in for this year. Thats because if you look at the share count its been flatish over the last couple quarters and previously had big buybacks in. Old economic assumption, gdp forecast really improved since we first put out the forecast in january. That was an actual up pressure on the earnings number but really got eaten up by the buyback assumption. Are you including any productivity gains and, therefore, margin improvements as a result of ai . No. Its funny, i think margins are hard to forecast and were very open about this. I have flat margins in my model. You know, i basically just made the assumption theyre going to be flat because all the macro variables i have used in the past to forecast margins are not working right now and i think that is in part because of things like productivity enhancement. Frankly we also have very skilled management teams that have been tested by one thing after another since 2018, trade war, covid, supply chain disruptions and that talent as a forecaster thats not a quantitative input i can put in. Ive been humble about our earnings numbers saying there could be upside to our view because we could get Margin Expansion based on those things. Kind of reminds me of what Chuck Robbins told us, Corporate America is populated with executives who have been through the mill over and over again. Yeah. Right. And find their management prowess. Does make you, obviously, more effective, i guess n a crisis. We seem to have a lot of them. Thats interesting yawn of your metrics are working. For a while, i was like the last year using copper prices and rate of change on gdp. I got frustrated and pulled them out and said based on what i was reading in 1 q i did feel like i was still seeing a lot of complaints about cost pressures that surprised me, the pricing discussion was waning. I wouldnt say people are abandoning pricing but thats kind of decreasing in terms of its efficacy. The cost pressures are still higher than i anticipated. Labor seen as a big challenge. So when i walked through it, and i felt like in this last reporting season, calendar 1q the managers were trying to rein in expectations. There was not anything nefarious about the economy that i was reading but did feel like they were trying to clamp down the enthusiasm. Ill be watching in the next reporting season to see what theyre seeing on all these things. I could be wrong on this stuff, but we have to see. Pricing pressure, i know when the retailers were reporting, i think it was Something Like three quarters if not higher did mention the word inflation. What are your expectations for cpi tomorrow and how the broader u. S. Consumer is still digesting these higher level of prices even if were not continuing to increase, we certainly have not got back to where we were prepandemic. The rbc house view is in line with consensus tomorrow, moving with the street, based on what numbers show. What our team has been saying, were going to see inflation moderate, its going to be a bit of a bumpy path. I think they were a little bit surprised by the strength in goods weve seen in the last few prints. Well be keeping a good look on that. They expect the owners equivalent rent to improve and thats another thing well be looking at. Energy in the intro, how much morgan stanley, q3 to 94 today. Is it going to be are triple digits out of the question . I dont think its out of the question. I will say im watching my valuation metrics closely for s p energy and russell 2000 energy. Those sectors are not as cheap as they were a few months ago. Weve been overweight all year. They are moving back to the middle of my grid which is a fancy way of saying theyre getting closer to neutral but not there yet. Well be keeping a close eye on it. You have a valuation case, you have geopolitical tailwinds energy is the sector in the s p correlated with 10year yields in terms of how it trades with relative performance. Its an inflation hedge, that Interest Rates could be higher this year than anybody anticipated, so theres a lot of stuff going on in this sector right now. Well see what happens tomorrow at least as we move forward. Laurie, thanks for coming in. Lori. Thanks for having me. Want more on the consumer when it comes to retail, a read from the ground with the ceo of ecommerce player chewy next hour on money movers. After the break cent comments from the new ceo of the Crypto Exchange buy nance. Well tell you where he sees bitcoin going from here when we return. Paris block chain week kicks off today. Europes biggest blockchain and Digital Asset event. And were talking to some of the industrys key players including the ceo of binance. Great to have you on the show. Give us the latest. Great to be here. Binance, a very interesting player, seen as a poster child of the crypto crackdown weve seen from regulators in the u. S. Coming months after that big 4. 3 billion settlement with the department of justice, in which the former ceo stepped down and pleaded guilty to criminal charges. I had a chance to catch up with the new ceo richard teng a few months into the job and tasked with a very big task, that is cleaning up this company. Hes come from a regulatory background. I started off by talking to him a little bit about how hes trying to change the culture at binance, which is something the doj took issue with. Lets listen in to his comments. In those very early stage of development, again, the rules, theres no clarity on that. Binance was operating in a certain fashion, right. But we have move past it. As the company moved into greater maturity, by looking at sustainability, the direction of travel is very clear with much more compliance, which is why were bidding up a robust compliance program. Teng was stressing that programs the way the Company Acted in the past was a sign of immaturity. The company is maturing now and really wants to try to work with the Global Regulators in the markets it operates in. Moving on to broadly the markets, of course, crypto markets have been buoyant. Bitcoin near the alltime highs, and were a few days away from the bitcoin event that happens every four years, the halving in which bitcoin gets reduced and this precedes bull runs. This cycle is very different. Weve hit the alltime high in bitcoin, and thats something that ceo stressed as i asked him about his outlook on the crypto market. Lets listen in. Normally after about six months after halving you see all new alltime highs in prices. This time it happened before the halving, which is why you see unique in terms of market cycle. One of the key reasons is the introduction of the etf, bringing so many new users, new liquidity. So he said his price forecast ahead of this year was 80,000 on bitcoin. He said he thinks the market will go higher than that and hes bullish. The players ive been speaking to at the paris blockchain are as you would expect bullish given, i think, two things, one, the excitement around those spot bitcoin etfs and two, the halving that is upcoming which has been supportive in the past for crypto prices. Ive seen wild calls this year on bitcoin, 100,000, 150,000. Its anyones guess where its going to go. For now, back to you. Absolutely. Thank you. It is sitting above 69,000 here, but lower on the day. Amazon shares are within inches of alltime highs. What investors need to know and where the street stands on the stock is after this. Welbeacin menl bk aomt. Natures bounty hair growth. Clinically shown to help grow thicker, fuller hair with just one capsule a day of advanced hair complex. Conquer hair thinning. And fall in love with your hair all over again. Only from natures bounty. Even Space Age Technology cant prevent accidents at work. So talk to your agent about workerss comp insurance from pie, or visit pieinsurance. Com. Safety first, then pie insurance. Welcome back to squawk on the street. Im seema moody with your news update. The parents of a michigan teen convicted in the 2021 School Shooting at Oxford High School are in court this morning to learn their sentence on four counts of involuntary manslaughter. They are the first parents to ever be charged and convicted in their childs mass shooting. Prosecutors are asking for each of them to serve 10 to 15 years in prison. Norfolk southern will pay 600 million to settle classaction lawsuits against last years Train Derailment and toxic spill in East Palestine ohio and will cover payments to residents and businesses within ten miles and past or future personal injury claims for those within ten miles. The settlement needs court approval. And ireland installing its youngest Prime Minister on tuesday. 37yearold simon harris takes over as the head of irelands threeparty Coalition Government after the surprise resignation of the former pm last month. Harris has less than a year in office before the next election. David, he is 37. Not the youngest head of state. Know who that would be . No. That would be the Prime Minister of france, he is 35. Oh. France . Yes. Youngest head of state. Even though he doesnt run the country. Thats a good point. All right. Thats macron who is still pretty young also. True. Yeah. Seema, thank you for the quiz. Amazon one of the better performing magnificent seven stocks. Behind nvidia and meta in terms of performance, but it is within inches of fresh highs not far from a 2 trillion market value as well. Kate rooney tracking the action and has more on where the street stands on all this. Kate . David, good morning. Theres been a lot of love for amazon in recent weeks. Weve seen a handful of price target increases and calls reaffirming the tech giant as one of the streets highest conviction pictures. The average target 209 where amazon has been trading this week. 95 of the firms have the equivalent of a buy rating. Three holds out there. No sell ratings on amazon. Rbc put it in a note this week, amazon is one of the internets largest true alpha dogs. They say thanks to its scale and advantages in ecommerce with its Cloud Business and a top pick for morgan stanley. That firm laying out what it calls better cost to serve and efficiency upside and points to prime membership driving some of the recurring revenue, cloud adoption, hitting an Inflection Point and advertising potential. Jefferies, meanwhile, says plenty to be excited about and plenty of runway ahead for amazon. Shares have outperformed all but nvidia when it comes to the magnificent seven, up about 20 this year. Ai has been the big driver for other names in big tech. Very few mentions on walmart about Artificial Intelligence being any catalyst when it comes to amazon. Jefferies does bring it up, warning amazon needs to improve its ai offering to stay competitive as multicloud adoption grows. There are other Downside Risks including aws revenue and margins declining and more competition in cloud and in ecommerce from shein and temu or any Global Economic slowdown. Back over to you. Thank you. Our next guest is one of the bullish analysts and has a buy rating and his price target 195 saying the first ever spring sale event could boost prthe quarter. You think the spring sale has enough to spring the stock from here . Well, i think every little bit helps. Amazon has been clearly one of the primary drivers or one of the primary architects shaping Consumer Behavior around promotions. But i would actually step back and just look at the progression of the quarter, january was strong, february was stronger, and march i think maintained the momentum that we saw in march, so the indicates the quarter should come out ahead, maybe a billion or 2 billion. Thats just on the marketplace. We think the aws business is showing acceleration, troughs in q2 and the advertising business is going to grow at twice the size or twice the rates of the broader advertising business. We think somewhere between 25 and 30 Digital Advertising growing 10 to 15 . Advertising very high margin. Im always curious, though, what would give you pause here . They can surprise us sometimes on quarters, particularly when it comes to how much they choose to spend. Yeah. I would say thats probably it. Certainly the ai race is heating up, and amazon is not considered at the, you know, the top of that tier. You, obviously, have alphabet and microsoft, but amazon is a clear contender and youre going to see them continue to aggressively invest. The other area of big investment, which theyre doing quietly but aggressively is around building a Global Logistics network, beyond what we know is amazon. They have this vision of being able to offer delivery to merchants, literally from the supplier in china, all the way to peoples doors. We think theyre basically taking a page out of the u. S. Playbook of offering logistics as a service. We think its a 100 billion business. Thats good investment. We would love to see them invest more in that. 100 billion opportunity only amazon is positioned to. You started out talking about the ecommerce business and the Piper Sandler survey teens twice a year came out an 61 basically when theyre asked where do they shop online, amazon continues to be number one. By 61 . The second is shein at 7 . Im wondering, how important it might be for an amazon to grab a younger consumers mind share, to keep them in the flywheel, early on and then throughout their sort of spending life cycle . I think its super important. Remember, so by our math amazon has about 43 or 44 market share of all u. S. Ecommerce and that cuts across all age groups. We think that includes the younger audiences. What theyre doing with prime is interesting. The prime subscription they have different tiers, right. If youre a student they give you a discount. A pretty substantial discount. Thats to try to make sure to attract this younger audience. The other is in terms of their ability to offer huge portfolio of products that cater to, you know, to the audience. So we think its a natural place. We dont think the chinese ecommerce players have had any dent in amazon, which frankly we feared coming out of last year, and all bodes well for the business short term. Youssuf, thanks for the snapshot. 195 price target. Only 10 away. 2 trillion value for amazon. Quick programming note as we go to break. This thursday cnbcs landing in colorado to explore how the cities of denver and boulder have leveraged their Rocky Mountain lifestyle to create two economic powerhouses. That expansion, though, comes with growing pains. Cities of success, denver and boulder, premiers thursday at 10 00 p. M. Eastern time only on cnbc. Still ahead this hour, shares of trump media ticker djt continue to tumble lower now more than 50 off its debut high. More on that fallout. Dow down almost 300 points and nvidia falls to the bottom of the s p list down almost 3 . Were back in a minute. You founded your Kayak Company because you love the ocean not spreadsheets. 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 encore energy, americas clean energy company, now in production in south texas. Energizing america with reliable and affordable uranium for Nuclear Energy fuel from our environmentally friendly extraction process. Encore energy. Stocks turned red here very quickly about an hour into trading. Lets bring in bob pisani and talk about one name in particular. I want to talk about the companies that have gone public because its been up and down here. What carl is referring to trump media and technology down 8 yesterday, down a little bit today. Lowest level since going public. Went public march 26th, opened at 78. Do the math here, little more than 50 off the high in the first day of trading. Volumes have dropped dramatically. The first two or three days of trading were big, 77 million, 30 million or so, now its down to 5, 6, 7 million shares a day here. Elsewhere, reddit dropped 3 to 46, sitting near its lows level since going public on march 21st. Is this a successful chart . Yes. Its above where it went public at 34, but if you were a retail investor, almost everybody is below where they were. Everybody who got in. This is what value of Technical Analysis is. Above the initial price. Anyone who bought it is just break even at best. Lets call that a mix one here. Gamestop, the mother of all meme stocks weve been talking about this for a while dropped below 11. This is a long chart a long, long slow descent here for that. The first time its below 11 since february of 2021 when it shot up. At one point it was over 100 on a split adjusted basis. It split in july of 2022 as i recall and so now youre sitting below 11. Some of the other recent ipo have done well. I was excited at aster ra labs, 700 million deal went public march 20th. 36. Went to 95. Now 67. So its well off the highs, but still up. This is a successful ipad. Amor sports, one of two billion dollar deals. It was a downsized deal 13 trading above that. Lets call that a modest success. What about the pipeline . Kind of excited this week. Two interesting names coming up this week. Thursday at the nyse, pax group, the largest nursing care provider in the united states. About 400 million. That will be trading at the nyse on thursday. What im really excited about, my childhood, ul labs, underwriter laboratories. You have to be a certain age to know this, nobody here is old enough except me to know it, this was like the Good Housekeeping seal of approval on a lot of products, particularly electrical products, when i was a kid in the 60s and said it had been testing. This is a testing service. Almost 800 million deal at the midpoint. 28 times 27 at the midpoint, 800 million deal. 6 billion market cap thats coming. So the the ipo market is opening up, but its slow. 8 billion in the First Quarter in a decent quarter precovid 15 billion would be a decent quarter. We did 8 billion. Better than 2022 and 2023, which were record horrible, forget it, we dont want to talk about it years, its coming back. You get Companies Like underwriter labs around a long time, a good sign. I still want to see a little bit more. I still want to see a little bit more i mean we have an lot of companies we think are poised to go public. We have relatively decent performance of the ipos you just pointed to. And yet i think the real problem is for a lot of these companies, particularly buy crow tech and tech is a valuation haircut. You hear this time and time again. The rounds of funding that were happening in 2021 and 2022, magnitudes of order above where the people want to price it right now. And who can blame them. The ipo people, our viewers who buy this stuff after its priced, routinely see a pop on the first day and lose money in the days afterwards. And i get the email, thank you very much. We had a nice price. You had the ceo on on the first day. We bought it and were down a month later. And that has happened time and time again. And i think the viewers have a point. They need to see some left money on the table, frankly. Thats the way we phrase it. Oh, its it popped up on the first day. They left money on the table. How about the viewer made some money. Thats a good thing. And id like to see that a little more. That means a little more pressure on the pricing on the first day of trading. Thats our goal, right . We want to help people make money, help people make better financial decisions. Still ahead, fans just not tuning into march madness this year, theyre also betting, and at record levels at that. More on the names to watch here. Stay with us. Well be right back. Uconn winning the mens ncaa championship in dominant fashion last night, the first team to win backtoback titles since florida in 2006 and 2007, beating my fatherinlaws boilermakers and marking the end of a recordbreaking tournament to engagement across the board, lets get to Contessa Brewer for a look at stocks that could benefit here. These tournaments were super fun to watch, mens and womens. I woke up this morning feeling like, its over. What are we going to watch now . Clearly there were a lot of people staying up late on the east coast. Sportsbooks with record betting. Fanduel tells us the mens championship game saw 52 increase over bets from last year and a 42 bets in the handle, or the amount wagered. Draftkings says last natures game was the most bet College Basketball game of all time. And caesars says it saw the most singlegame parlays, the popular bets on the sportsbooks, saw the most on a College Basketball game. Barstool founder, get this, made a 600,000 bet on uconn march 20th with draftkings for a win of 2. 76 million. He says his biggest ever. Good for him. Might be bad for draftkings, though. In fact, caesars points out, this was a tournament for the customers with favorites covering the spread 61 of the time. That means they win. Well see whether that shows up in the earnings. But the sportsbooks hit the jackpot with Womens College basketball. South carolinas undefeated season, iowas caitlin clark, it really provided the narrative that fueled the biggest single womens sporting event for betting of all time, for both fanduel and betmgm. Caesars says what would have happened if it was shown in prime time not so prominent 3 00 p. M. Time slot. Even so, where the wagers are concerned, the far outperformed the nba games on sunday. It was really an exciting womens season. It was exciting for the mens and womens. I love College Sports but this year it was quite dominant. Caitlin clark moving on. Contessa, do we have any indication of if the fandamonian can continue for next season . Yes. Right now you only have a quarter of betting customers who are women. The sportsbooks think the more women are engaged with womens sports, and its not just women betting on it, its also men, but the more women are involved the more an Addressable Market and an opportunity to meet demand for sports books. They want women to be involved with womens sports and also betting on womens sports. Contessa, thank you. Should point out, weve had a turn in the market since we opened with the s p now down some threequarters of 1 . Well have a lot more ve market coverage for you straight ahead. Dont go anywhere. Trade makes complex trading easier. React to fastmoving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you wont miss an opportunity. E trade from morgan stanley. Stevens dribbles up the court. He stops . For the championship [crowds cheering] nice shot, marcus sweet, turn simulation off. Tssk, tssk, not so fast. What, why . Did you forget marcus . Forget what . Your chem exam . Uggh . Flashcard time the atomic weight of boron. The future isnt scary, not investing in it is. 100 innovative companies, one etf. Before investing, carefully read and consider Fund Investment objectives, risks, charges expenses and more prospectus at invesco. Com. I cant believe you corporate types are still at it. Just stop calling each other rock stars. And using workday to put finance and h. R. On one platform. Tim, you are a rock star. Using responsible ai doesnt make you a rock star. It kinda does. You are not rock stars. clears throat okay. Most of you are not rock stars. Oooh. Data driven insights, and large language models. Oh, thats so rock roll. It is, right. He gets it. Yeah. Good tuesday morning. Welcome to money movers. Im Carl Quintanilla with Courtney Reagan live at post 9 of the new york stock exchange. Street continues to debate the feds path for rate cuts ahead of cpi tomorrow while some are calling for no change in policy this year. Citi is in the opposite camp. Their global economist explains next. An exclusive with the ceo of chewy looking to turn around the stock thats dropped by 50 in the past year, establishing its first brick and mortar vet clinics. Think you missed out on the surge in the chips . Needham initiates a new name at a buy, calling it an underappreciated a. I. Story. Wel