Picture. Goldmansachs expects the fed to begin easing in q2 of next year. Also ahead, were going to talk about what is next for the tech sector. This is in the midst of whats been a rough august at least so far. Were down 7 month to date. And letter x Surging Company rejects an unsolicited takeover offer from its rival, cleveland cliff. Lets get some other news, though, as well, as we start the show paypal has a new ceo whoa. Yeah. Alex, who currently runs the Small Business and selfemployed group for intuit, is going to take over from paypals longtime ceo dan shulman on september 27th according to members of the board a little earlier than expected they conducted the search for paypals new ceo shulman will remain a paypal director until next may. Chriss being hired was a result of the process where the board interviewed nine ceos. They reduced that pool to four candidates and then they chose mr. Chriss members of the Board Selection Committee tell me he impressed them with leading a division that contributes to half of intuits revenue he did oversee mail chimp. Its owned now by intuit, run by him. They believe his focus on small and mediumsized business at intuit will position paypal to fulfill its growth ambitions shareholde shareholders in the company, they havent had a lot to cheer about for some time. The members of the Board Search Committee tell me they met with roughly 20 investors as they conducted the search for paypals new ceo that dud include Elliott Management as well, jesse cohen, who runs activision there. Im told that firm had no role in the actual search and guys, you know, we all can see the mountain that paypal climbed. I think it hit a 350 billion market value shulman has been under pressure for some time and earlier this year did announce his intent to step down. Hes a young guy, 46, not as current ceo, though does run about a 7,000person division at intuit but will taking over a company with some almost 30,000 employees. This guy, i happen to like intuit theyve come on the show the quickbooks division is a remarkable division for Small Business look, this could be a coup i think paypal needs to have better relationship with merchants because thats where they lose out, including to apple. I think that paypal has stumbled weve been waiting carl, when you announce that a ceo is a lame duck for a year, i dont think thats such a hot idea right . Wow. You know what . Lets let a yeah. Im told they began the search in february, so it wasnt long after shulman said, im out of here at the end of the year speaking to a number of members of the search committee, they seem quite happy with their pick, not at all concerned by the fact that he has not been a ceo. In some ways, embracing the idea that this is a guy who has a lot of experience in terms of product spacing, will be aggressive, though, certainly not going after some big deal such as a pinterest but aggressive both on acquisitions to try to bring about more change more quickly at paypal. The growth rate there decelerated dramatically, which is why you see that decline, and really, carl, it was all by surprise each quarter was another bad quarter, and i was had paypal on regularly, and each time, i got it wrong i said, geez, i thought they would turn it. This new guy, i only know him as being part of the winning team of a very winning company, intuit i was going to see when i get out to San Francisco intuit, as we know, has become enormous you put one versus the other, and you get a sense as to why you might be encouraged, given what intuits been able to do, particularly when it comes to terrific. I just i admire intuit, and anybody i owned a couple Small Businesses, and you dont need accountants with intuit with quickbooks and saves you a tremendous amount of money i think that the problem with paypal is that its just become a commodity. Theres a lot of these companies that do what they do and what happened if you look at chat of paypal with mastercard or visa, you see that we turned against fintech and went with oldfashioned, and i think that this could be a good move. Even the last quarter, the margins were under more pressure than anticipated it was a terrible quarter we talked about it on air, wasnt that long ago, and the stocks suffered at that point as well he will take over as of september 27th, ending the long reign of dan shulman there was a huge amount of success. I dont have clarity on whether elliott is even there but they took that 2 billion stake roughly a year ago but havent at least havent heard much publicly from that. And i feel awful. Executives come and go, and there was a period where dan shulman presided over a run after the separation with ebay that was a remarkable run. It was. And that would have been a great time when he saw that doubledigit, 18, 20 growth, it was remarkable but i guess it was just unsustainable, and dan became one of the executives before this where it was beat and raise, beat and raise, beat and raise, and suddenly, it stopped, and it was the classic case of trying to get a book going for investing club classic case of overstepping just overstayed. Just painful certainly implications for the u. S. Consumer. Speaking of which, busy week setting up here as we move on to some of these retail earnings that were going get, beginning with depot tomorrow. Goldmansachs says it expects the fed to resume easing in q2 of next year, maybe 25 basis points a quarter but goldman does warn policymakers that they could hold rates steady if inflation doesnt cool fast enough theyd already taken november off the table last week. I thought this was one of those pieces that, its a thumbsucking piece. There could be rate cuts unless there are not rate cuts. Thank you. The eagles could make the playoffs unless they dont make the playoffs i just feel like they wanted to talk about pencilling in 25 basis points of cuts per quarter and its funny because in the same breath, you have a terrific piece by dave kostin who says, things are Getting Better and stronger it would seem a bit an antithetical goldman speaks with many voices, including voices of new York Magazine and the New York Times. Dont forget bloomberg. Its overkill. What are you doing there you didnt read the piece in new York Magazine . Oh, yes, i did. I read every word of it. Look, he was reduced to being a fitnesnance bro. David, do you know what a finance bro is . I wouldnt mind getting a passerooni he started them down the road to consumer. To be fair, solomon did increase their obviously, the acquisition they made, which was not well timed or well well anything but this is a little absurd by the way, when it were talking about david solomon, the ceo of who is the ceo of goldmansachs and what has been just this avalanche of negative coverage, basically all of which seemed to say that the guy is well, i cant use the word here. Not suited. Im taking the other side right now. Let me just tell you, this has been i mean, this has been going on for so long. People questioning whether hes going to maintain his leadership there, and ill tell you, i havent heard that this board is in any way ready to say anything the board likes it. Take talk to him i dont believe at all that theyre ready to make a move in any way. Theyre not nor is there somebody they could identify were they ready to move. Im so not in line. Youre not . No. Thank you, david im talking David Solomons side here this was another thing he goes to hamlin, great beneficiary of hamlin. Hes done a terrific job there can we just stop attacking him for everything he does maybe his shirt looks bad. Hes listening a bit more hes not that piece was a savage piece it was savage good read. It was a good read i have had pieces written about me like that and theyre like my wife would say, listen, if you get a chance, dont read new York Magazine this week. You may not like the restaurant reviews. But all of this avalanche of criticism does not, i dont believe, mean that hes going anywhere not at all. But hes orgachestrating it i dont know, jim its the partners the partners are behind it. Right, but the board itself they got the memo that its not a partnership anymore or they didnt . I mean, the i want to own this stock so badly for my travel trust we own Morgan Stanley. Gorman is departing, one of the main reasons we want to own it is we have our own investment meeting this thursday. I fear gorman leaving, but i dont want solomon to leave. He had to get rid of all this junk that went into this Retail Market did mayo say this morning that if he were to leave, stock would suffer i dont think everything started with solomon about this retail move. No, it didnt he was following through on a strategy that was already put in place. Lets say one time, i did an interview with solomon. You may have to listen to more maybe he can improve his contact to a certain extent. People dont like it when youre mean to them, apparently solomon is not a mean guy ive talked to the guy plenty of times he disagrees with me so what . Youre allowed to disagree youre even allowed to make a face and tell me im an idiot, but ill tell you youre an idiot, and then we move on i went to the ceo council, my wife, lisa, and if i mention her one more time, im done with her. I see him coming, and i say, oh, shoot, solomon, be cool. And he goes, jim, how you doing . Lisa, wow. You got to do that. You cant my wife says, you are such a nothing. Obviously, you mean nothing to him other than the fact that you seem like he likes you you got to keep a happy face if youre solomon. Thats why all my chips are in on solomon. My wife says, you got to understand, whatever pressure that guys under, he seemed like a terrific guy talk to the board i did by the way, montek joined that board weeks ago Everybody Loves that. What is that im all in im even throwing in my friend, greg all in on solomon i didnt expect that im all in. Is it going to be a Charitable Trust name . We dont know yet . Id love to im worried about Morgan Stanley. I think goldmans cheaper. He said to me do you ever do anything in that travel trust . Do you ever sell or buy anything constantly. Constantly youre my worst enemy. I work my yes i know you do you raised some cash in procter. Exactly and im looking at buying goldmansachs as long as solomons there. Your losers in particular, you dont sell them. You made me sell boeing at the bottom because you intimidated me every day that was my fault you bet it was. Were going to get to boeing because it does get added to the u. S. One list today over at b of a. I sold u. S. Steel on friday hows that that was just genius. Way to go. Speaking of goldman, though, certainly in the m a market, well talk some m a in the spotlight as u. S. Steel does surge after rejecting this unsolicited takeover bid from Cleveland Cliffs lot of stuff to get to in media and autos anteand sla d nikola more squawk on the street continues. What do you know about rock stars . Billy idol . I mean wheres the skintight leather . My shoes are leather. Wheres the unnecessary zippers . That thing billy, rock star is just how doug feels when he uses workday. Thanks, rory. Ill show you rock star be a finance and hr rock star. Workday. For a changing world. Billy idol just stole your golf cart new 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. Power e trades easytouse tools make complex trading less complicated. Custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. E trade from Morgan Stanley. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Got some breaking news on autos and hires over at ford lets get to phil lebeau carl, ford is hiring peter stern, a longtime highranking executive at apple who will come in as fords head of integrated services, a csuite position he will be hosting a call with jim farley next hour where theyll talk about his new position at ford, and the goal that ford is working towards, which is really to take software as a service and expand it within its portfolio of electric and connected vehicles significance here the significance here is that peter stern had presumably worked with doug field when doug field was at apple but has been at ford for the last year and a half, and during an analyst day about a month and a half, two months ago, doug field gave an extensive presentation talking about his vision and fords vision for software and connected vehicles to be a larger part of the ford portfolio as well as a larger contributor to the bottom line in the years to come at ford, so ford taking another step in that direction, hiring peter stern from apple he will come in, in the csuite position, as the head of integrated services and at that level, guys, were going to be talking about whatford can do to take software as a service to the next level lot of potential there, not just at ford but with other automakers question is, how do you really tap into that and monetize that . Phil and jim, jim farley, doing this tour of the f150, talking with the rock over the weekend. I saw that yep, and i think that one of the things that i like, phil, is that theres a Budding Partnership with salesforce well, i shouldnt say budding. Jim will say its already big. With salesforce for again the Small Business is it just for show, phil . I dont think its for show, jim. I do think look, ive talked with a lot of people both at ford as well as other veterans in the Auto Industry, and the question ive always put to them is, when does software as a service and integrated services, when does it truly pay off Great Potential there. Weve known about this for years. Theres nothing new there. And everybody believes that theyre close. And i say they. The Auto Industry is close its just a question of, how do you unlock that . Ford pro is going to be the first area where theyre going to unlock that commercial vehicle sales and the commercial portfolio, thats a huge asset at ford, and if they could have peter stern along with doug field as well as the rest of their executives really find a way to turn ford pro into a great revenue generator on a regular basis, beyond the sale of the vehicle, theyre starting to do that thats really the key here, jim. Whether or not you or i are willing to pay for software faze a service, i think were a number of years away from that truly happening. Some automakers are starting to spread to the surface but you and i are not to the point where were willing to pay regularly for Certain SoftwareServices Within our vehicles. Totally agree i have a ford. My daughter has a ford we dont see the utility, but were not Small Businesspeople but in terms of valuation, you are dead right i just cant lump it in. Im more interested in the september 14, labor day, than i am in software as service. Absolutely. And for good reason. Look, its going to be a nasty, nasty fall in detroit. Yes thanks, phil. Phil lebeau. We will get to some of the estimates this morning out of citi about what a strike would mean for the automakers. Got some price cuts at tesla as well in china. Well get cramers mad dash and countdown to the opening bell in a moment if you wake up thinking about the market and want to make the right moves fast. Get decision tech from fidelity. [ cellphone vibrates ] youll get proactive alerts for market events before they happen. And insights on every buy and sell decision. With zerocommission online u. S. Stock and etf trades. For smarter trading decisions, get decision tech from fidelity. All right, its time for a mad dash. Got about seven minutes before we get started with trading here at the New York Stock Exchange and why not . Lets talk some more nvidia. Okay, so nvidia has been going down its the leader of the decline in the nasdaq, arguably even more than apple. This morning, Morgan Stanley says its going to be beat and raise. Nobody likes nvidia more than i do this stock is not rallying yet it can churn, maybe, flop and chop i had a great chartest on that said its going to be the worst stock in the month of august, but i want to tell people, just because a stock has a great product, we do, we know that theyve got the graphics cards for a. I. , does not mean that it can grow to the sky. And this is a quarter thats already been preannounced with 4 billion more sales than people expected and everyone is turning on it. I was at a party this weekend, and all i heard was, like, you stuck me in nvidia are you kidding me . Surrender how do i get out of nvidia you stuck me . How do i get out of nvidia . One person had the guts to call it a dog i named my dog nvidia, and then it died. I didnt need to hear the postmortem obituary about nvidia dont get in it, then. If you cant take the pain, get out of it. That doesnt mean im saying buy the stock. Im saying, we have stocks in this market that go down service now, i like that goes down. Salesforce, i like that stock. Dreamforce is coming goes down. Stop sweating the program and just accept the fact that stocks go down. Thats all im saying. But you still want to own it. Right longterm, and how can you not . By the way, thats just one year we can go back ten years youve liked this stock, we should point out ive liked it since i first saw it eight years, nine years i got it right here look at that. I got it right