Transcripts For CNBC Squawk 20240627

8. Checking on treasury yields. The tenyear yield at 4. 335 . 4. 751 for the twoyear treasury note. The yen is also a big story that system pacting the treasury market as well. It hit a 38year low against the u. S. Dollar yesterday. 160. 88. The thinking about intervention. It is almost a foregone c conclusion. Thats something to watch. You got your notebook . I have a notebook. I write notes every morning. I dont know what you do. Becky todays that, too. I have it by date. Go to a blank page. Okay. Are you going to try to guess numbers . Im going to tell you whats on todays squawk planner. Im throwing my pen. Do not throw that down. Whatevers in the squawk planner is already in my notebook. I take notes during fast money. Todays squawk planner. Several Economic Data points. You have gdp revisions and weekly jobless claims and may durable goods due at 8 30 a. M. May pending home sales comes out at 10 00 a. M. We hear from walgreens around 7 00 p. M. Ive told you that all my movie references are too old. If i went into walgreens, it was like once every couple of years. Now i walk in and its mr. Kernen. Remember tthe graduate and he has a fake name. Everybody knows him. Thats me now at walgreens which is a sad commentary. Im not going to tell you what i buy there. You can use your imagination. I assume gummy bears. They call the retail part the front. The back gets plenty of business. From the weight loss drugs. This is all natural. Not for you, but in general. For other people. Yes. I thought about it. Havent done it. On the agenda, President Biden and former President Trump will faceoff tonight in atlanta. This is an event hosted by cnn. You can watch live coverage on nbc at 9 00 p. M. We will talk about the debate strategy for each candidate with pollster frank luntz. We will talk to bill bailey. We will get advice, probably, for President Biden from bill bailey. Tactful. Moderate. Reasonable. And then chris sununu. He was a huge nikki haley supporter. Now hes on the trump bandwagon. People point to him. What about that stuff that you said about trump . Its the republican nominee. Hes a republican. Thats what people do. Think of the people that are doing back dflips to defend joe biden . They probably know not is particularly thrilled, maybe, on either side. You will hear that remember Kamala Harris and joe biden at the debate . Politics. Things happen like that. It may look like we have issues at times. We dont. The love is there. Underneath the surface. Way under. Way down. Layers under. You need a drill bit. Or a chisel. Shares of micron are lower. They are looking for the Current Quarter guidance in the proj proj projection, but fell short of the lofty expectations. Micron said demand is sluggish in pcs and smartphones. Before the drop today, the stock had been up 67 year to date. Microns ceo will be on mad mo money tonight. They said they are mostly sold out for full year 2025, but some analysts are saying, like tsm, are fully sold out. Should i look at it as commodity memory or you have to have proprietary stuff now . Micron . You should have proprietary stuff. Dram business is cyclical. Now its escaping that. The stock is doing much better. Over the years, it was feast or famine. Solely on the price. Meantime, Bank Stress Test results pass. The stress scenario included u. Unemployment surging to 10 and customers real estate plunging 40 and housing prices falling 36 . In the hypothetical scenario, banks could absorb 345 billion in losses. Now they are looking for any plans of capital allocations. The fed said it wont happen until friday after 4 30 p. M. Others say it will not happen until basl 3 is ironed out. Those numbers sound horrible. That could never happen where we are today. We know never say never. We had a pandemic right. Somewhere in the world, they are vaccinating people about bird flu which when they try to scare you, they say mortality rate could be 50 for bird flu. I dont know. Probably very unlikely. Remember before covid . The reason we initially didnt think covid would necessarily be like that because we have been through mrsa and sars and so many other pandemics and that took hold and now we are ready to accept another one. Hopefully bird flu is not like it. 10 of war and dirty bomb . It is hard to imagine 10 unemployment. Massive cyber sdattack on th grid. Look at the impact one cyberattack had, cdk, on the Auto Industry . Right. On the grander scale, that is sm small. You see how an industry can be at threat. The kinds of things they were talking about to get us to 10 unemployment. Im more worried about those events than whether the banks are able to weather. It is important. You dont want the Financial System collapsing. The type of scenarios you are talking about have their own set of scary things. A whole set of worry. We do. I do worry. I worry about the guys that cant get back. What if boeing has to ask elon to bring those guys back from the iss . Thats sad. Boeing facing new whistleblower claims. The subcontractor mecca ledges retaliation by Spirit Aerosystems after work he observed on the dreamliner. He witnessed holes improperly drilled on the bulkhead that deviated from the specifications. Boeing said the claims were reported and thoroughly investigated and pose no safety concerns. Regarding the whistleblower claims of retaliation, boeing is not involved in the personnel decision of subcontractors. A spirit spokesperson said they are looking into the matter and encourage all to come forward with the companys protection. Im not going to reference the last couple whistleblowers that maybe are not with us at this point. Are not with us . Maybe. A couple are not with us which, im sure, is nothing more than coincidence, hopefully. Thats what they say. Yeah. Lall right. As the aspen ideas festival, le le lester holt asked sam altman about the board firing him. Brian was enormous help. He was obviously a super painful experience, but i do understand why anxiety levels have been so and are so high. I think the previous Board Members like theyre nervous about the continued development of a. I. And had whatever feelings about me and what we were doing. I strongly disagree with what they think and things they said since and how they acted, i think they are fundamentally good people who are nervous about the future and trying to figure out how we get to a good outcome. Im super excited about the new board. Theyre extremely constructive and helpful and experienced and strong. Its been a very propductive thing. It was hoarrible at the moment. N the period after that, where i just had to pick up the pieces and state of emotional shock, was really bad. What i noticed in the first 24 hours, was not a lot of people sticking up for sam. And in my darkest times in my crisis, i had people stick up for me. Thats what i wanted to do for sam. Much more from the aspen ideals festival throughout the morning. Coming up, the amazon market cap surpassing 2 trillion. Ce tt the fifth tech company to exedhalevel. Were coming right back. Old school hard work meets bold new thinking. To help you see untapped possibilities and relentlessly work with you to make them real. When you need to prepare for unpredictable adventures. gasp you need weathertech. [hot dog splat. ] laser measured floorliners front and rear. [drink slurp and splat. ] scream seat protector to save the seats. [honk ] theyre all yours were here hey, i knew you were comin. So i weatherteched the car can we get ice cream . We can now. Kid proof your vehicle with American Made products at weathertech. Com. Daves company just scored the comcast business 5year wi price lock guarantee. Ts high five high five. Im on a call. Its 5 years of reliable, gig speed internet. Five years of advanced security. Five years of a great rate that wont change. Yep, daves feeling it. Yes. But its only for a limited time. Five years . Five years. Introducing the comcast business 5year price lock guarantee. Powering 5 years of savings. Powering possibilities. The s p 500 and the nasdaq logging backtoback gains. Joining us now is kari firestone. More to come, kari, at this point, in your view although were halfway through the year and up from last year. Hi, joe. I think the rest of the year could be more volatile than the first half. Weve had really no correction if you go back to the beginning of 2023 and it has been almost a Straight Line higher. Its been more and more conce concentrated. That becomes an issue when Ten Companies represent 76 of the gains in the s p for six months. Thats pretty extreme. We have seen it before, but this has been extended for a long period of time. Primarily, nvidias 34 of the gain for the whole s p, the 15 for the entire index and 34 of that is nvidia. We think that there is upside, but we feel that we could have some ups and downs along the way through the rest of the year. Theres no risk recession and unemployment is low. We still have an economy that is positive. We have not fallen as so many people have predicted and we continue to grow. On the other hand, its a soft landing still. You may not if you dont want to play those leaders, you may want to look at some of the other areas because you always have to be invested, kari . We are highly invested. You dont go with cash. You imply volatility in the top ten, so there are other stocks that you think are overbought. Exactly. We own the big names. If we look at what has not moved or what has been hurt by all this huge surge. If you have all of the money moved into nvidia in the past 12 months, that money did not just come from cash. It came from other names. Other than microsoft, for example, and meta or google, if you call them software companies, so some extent. Autodesk or adobe or salesforce, those stocks have been hurt as people have moved away from enterprise software. We think they offer great opportunities. Their multiple is are down. Autodesk has started to move higher. Adobe has started to surge. They offer mission offers. They have to move Capital Spending back toward the Software Environment and not just spend it on chips. There arent even enough a. I. Chips available for people other than the big buyers to own. We like those names. We also see opportunities in names like american tower. American tower has been an under perf performer. It has a lot of debt. They had sprint transition. They had properties in india that werent working. We think they have things moving in the right direction. The stock is selling at a low pe relative on their cash flow and Everyone Needs more and more digital communications, plus amt owns a lot of digital storage centers, which is another way of actually to play artificial intelligence. We like that. The last name i would give you is thermo fisher. This is a stock that benefitted through covid with the testing, of course, and the stock had a setback, naturally, because we werent in covid. Now it starting to come back. We see the Earnings Growth continuing. Next year, we will see better numbers than we have seen for quite some time. Also, you mentioned bird flu earlier. Dont you dare use bird flu as a reason to buy this stock. Okay. Shame on you. Anything else. Anything else that turns, they will provide tests for it. You know that company well. Thats a local company up there, isnt it . A long time. Its in our neighborhood. And fisher. Thats a route 128. Route 128. Company. I know. I used to work on route 128. All coming out of the great schools. Once again, a way for you to get to the harvard connection. All right, kari. You like kari or kari . You know what im thinking of . You can call me whatever you like, joe. Ill call you joe. All right. Kari. Spelled kari. All right. Kari firestone, good to see you. Take care. Coming up, the ceo of airbnb talking about the Paris Olympics and the taylor swift eras tour. Squawk box will be right back. iconic brands speak for themselves. We are so excited to welcome you to our community. Today is all about you. headlines from the aspen ideas festival where Nbc Universal is a media partner. Andrew is there and he spoke with brian chesky about the state of Summer Travel demands. What are you seeing travel wise . Is it yolo . I dont think were ever going back. I think i think what the pandemic did is travel and experience was taken way from people and sometimes things were taken away that dont go back. This is something that is innate in all of us. I think there is this appetite for experiences that is actually greater in travel than prepandemic. I think it is how people want to spend their time. I think were more mobile. Now more people can do jobs on la laptops. There is a lot more travel because people are flexible. Ill give you a couple of exams. The total eclipse. We saw the amount of bookings along the solar he eclipse. Another thing were seeing is the olympics. We are literally seeing hundreds of thousands of bookings in paris for the olympics. Imagine the olympic stadium. Imagine filling four or five olympic stadiums. We will see you there. Yes, absolutely. One of the properties is part of the is it technically part of the icons . We took the cloakroom and turned it into the airbnb. We took the design which is the best seat in the house. It overlooks the seine. You book it . Thousands of people. One winner. How many icons total . I think we launched 11. We announced three more since. We announced the inside out house. We announced the incredibles house. These are truly once in a lifetime experiences. Is this one you can tell us about that hasnt happened yet . Yeah. Last year, the barbie movie came out. We turned a house in malibu into the barbie dream house. If you have seen the opening scene, i want to Start Building enter streets and worlds. It would be fun. Almost like disney or a level of detail you have never gone to. Taylor swift effect. Does it concern you that it is not a repeatable thing . It doesnt concern me because i think our business is so adaptable. People stopped going to cities, but less urban areas and staying in big homes. We have seen a 70 increase of bookings where taylor swift has a concert. There are huge opportunities. We have euro cup and we have olympics. I think events are going to be a big part of airbnbs future. Why do people go to twaylor swit concerts . They go for the shared experience. I think here is my theory. The more time we spend online and on devices and getting the connection and it never feels like the energy, people are gravitating to concerts and stadiums and festivals and conferences like this. You will see more like this. Whats going in barcelona right now . Apparently they want you out. This has been a very long over a decade long story in barcelona. We worked very hard. Barcelona is a more difficult challenge for us. We are trying to find and continue ways to operate and be successful there. What do you need to do to convince them . Here is the one thing i learned. You have 100,000 cities. Theres barcelona or new york. It turns out there is not one person. Take new york. You have the city council, you have the mayor, you have the different parties. You have real estate developers, you have hotels. You end up having enormous number of stakeholders and here is the other thing, all of the stakeholders change every few years because people come and go out of office. These cities are living and breathing organisms and you have to have many relationships with the cities and every few years, they might start over. Imagine doing this in all these cities. Its a lot of work. In the next hour, more of andrews interview with brian chesky. More in the next hour of how he feels the shape of travel is moving. And we will talk to an analyst next and we will speak with frank luntz on each candidate. As we head to break, here is a look at the s p 500 winners and los losers. 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 . Good morning. Welcome back to squawk box live from the Nasdaq Market site in times square. A little red. Not too much what happens. We will see what happens as we get in the session at 9 30. We got there at 5,500. A lot of analysts are 5,500. Now they are talking year end. Now to the stress test. Federal reserve announced the banks can continue to lend to consumers and corporations. Joining us is the senior north american banks analyst. All 31 banks passed. There is an issue of how well they passed. People keyed into that. Goldman and wells did not look good. Can you walk us through why . Thanks a lot for having me. We said this going into the stress test and inherently opaque. As you pointed out, goldman and wells did not look as well with the stress capital buffer. The requirements go up year after year. You will see it from the nearterm standpoint, the stocks come under pressure this morning. Again, it takes you back to how intertwined all regulations are on banks it looks at equity and the outlook for the sector. Does it underscore wells higher exposure to consumer and maybe that could be a concern for investors . If you are a believer the consumer is under pressure . I think the conversation you and joe were having earlier, it is worth looking at the hypothetical scenario. It is drastic. I think it needs to be put in context. It is hypothetical and opaque. As we think about fundfundament you worry about consumer and credit card loans. It is good to think about the losses if the economy doesnt have the soft landing many are hoping for. Do you think any of the banks will announce yincreased payout . It would be preduent for the banks to hold on. Yes, i think this uncertainty where we see any clarity before the elections or not and which the regulators take. The one name that sticks out is citigroup which saw relief. That is increasing buybacks and investors would like to see that with the positive results. How about Jpmorgan Chase . Jpmorgan chase had a large payout. Jamie dimon said our capital cup runeth over. Should we expect more from jpm . The thing about jpm, they have 50 billion of excess capital after the increase last night. It is less about the minimum requirements and more about the ceo jamie dimons views and the macro and things could get worse and having dry powder. It is a function of management view of the outlook and their valuation as opposed to having the wherewithal to buyback stock. Are you less and less worried about a hard landing in commercial real estate . Have the fears abated . The larger banks dont have as much exposure, but the regional banks do. Thats a great question. The unique sort of stress points in and of itself. There are all other things. I worry about all of the things and if we get into a stagflation. Inflation is sticky. You get the worst off and cost of borrowing is still high for the landlords. You could get there. Every monthly move without the fed having to cut rates, you worry about that scenario and less about the back half of the year, but in 2025. It is an issue still . It is and you see the banks reacting to the negative rates. The stagflation scenario could create pinpoints next year. Thanks for coming in. Coming up, showdown in atlanta. We will talk about debate strategy with pollster frank luntz. As we head to break, here is a look at the currency check. Announcer currency check is sponsored by interactive brokers. The best informed investors choose interactive brokers. Joining us now with what to expect from tonights president ial debate is frank luntz. Fil pollster and political strategist. This is just for musings, frank, about what to picture . Expect . It will be so many things to anticipate or predict . Lets start with the format. It doesnt seem like a debate where mics are cut off and no audience . It is almost like someone gets asked a question and they get to finish it and the next guy gets asked a question and maybe he can respond to the previous one . How do you see it playing out . The mics are actually close enough where they are standing that if yyou cut off a microphone, you will still hear President Trump if he disagrees with joe biden and vice versa. I have something very specific for both candidates. Number one, they need to have three rhetorical questions where there is simply no answer. Such as ronald reagan. Are you better off than four years ago . Are you safer today . In all three cases, the answer was no. That was the end of jimmy carter. Start with three rhetorical questions. Second, you have to have three u successes. They were both president. Compare inflation. That was Donald Trumps success. Compare ships and technology. Thats joe bidens success. You have to have three. One is random, two is a trend, three is proof. Next are the three key priorities. Nothing matters more than affordability. Which dmicandidate will make yo daytoday life better . The second issue is immigration. Who will fix the border . By the way, thats another clear advantage for donald trump over joe biden is the border situation. Now, for biden, hes going to talk about Womens Health and hes going to talk about the abortion issue. In the end, you focus on three key priorities for the future. Finally, one audacious mission. Cure cancer, send a human being to mars. Something that gets people to dream. Those are the four key aspects that make a difference in this debate. What about the moderators . Will stories be written about that tomorrow . Will stories it will get attention. By the way, the moderators, the trump people will beat up on the moderators because thats what they do. The biden people will beat up on the moderators because thats what they do. The fact is, its a thankless job. It is Chris Wallace who regrets doing it in 2020. Everybody beats up on the moderator. The campaign that does the most yelling at the moderator is the campaign that knows it lost. If you believe that you appealed to voters and you were successful in your messaging, the moderator doesnt matter. If you believe you failed, you will blame the moderator for your failure. I guess we dont need to share everything we were talking about. Usually i do. Sounds like youre on that road, joe. We are going to look at the mental an cku acuity of the can, frank. People think trump was demented when he was 30 or 40 or 50. They just think hes demented because they have tbs. He is still the same donald trump. I dont see him missing a step. I cannot say the same for President Biden. Im not going to take the bait. Thats a really good point. Voters are turning in. I think joe biden has more to prove. Im taking joe bidens side. Can he do it . The state of the union, frank, was a teleprompter. Being able to read a teleprompter with energy and vigor is one thing. Remembering facts, dates, names, maybe for seven days hes been just saying it over and over and over again. You know, he could go play hamlet because he memorized lines for a play or something. You are really musing this morning. I want to make a serious point. Expectations for joe biden are lower than donald trump. This is what trump has done. His campaign made a big mistake. Month after month, they criticized bidens inability to serve as president. So, heres the deal. We went through this back in 2000 with al gore and george w. Bush. When bush took the stage and able to complete complicated thoughts and had policies, he so exceeded the expectations that gore had set for him that bush was the winner. Same thing in 2024. If joe biden comes out and has a clearly defined game plan and clearly defined priorities and clearly defined success stories, the thing is joe biden exceeded he expectations and won the debate. The expectations are low for a reason. We are asked to dont believe your eyes. What else will they tell you at this point . It is believing our ears. I think well see each other tomorrow annd youll get a chane to see. We found 15 voters from the swing states to watch the debate. These are people who dont like trump and dont like biden and dont like robert kennedy. They will vote for the least wo worst individual which is sad for democracy. Ill show you which clips and sound bites made the biggest difference. I will tell you im more interested in the opening 30 seconds for each candidate and closing 30 seconds than i am anything else in the entire debate because the opening and closing will make the difference in how we make up our minds. Frank luntz, we look forward to seeing that friday, i guess. See you later. Thanks. Thanks. Is that tomorrow . After thursday. Todays thursday. Did i share everything . Kind of. No. We talk about a lot of things. Coming up, a. I. Generated al michaels will rrnaate the olympics next month. We have the details after the break. Helps secure tomorrow. Our timetested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. Can i have another pancake . From full house. To empty nest. To free birds. Vanguard personal advisor can help you prepare for every chapter. We got this. Thats the value of ownership. Lets talk about the olympics. Our Parent Company Nbc Universal is using now the a. I. Generated voice of legendary broadcaster al michaels to narrate a customized daily highlight reel of olympic events for peacock subscribers. Peacocks program has been trained for michaels nbc clips to formulate coherent, realistic sounding sentences. Michaels granted approval for the use of his voice and subscribers who want the daily highlight reel can select the olympic events that interest them most. And the type of highlights they want to see. Peacocks a. I. Will work each evening to generate a custom package using al michaels recreated voice, which will narrate the events. He gave his go ahead, obviously. Hes watched it. He was absolutely flabbergasted at what he saw. You know, hes not criticizing it. I think hes a little bit shocked that, wow, you really dont need me, but just to talk about this, this man, i mean, he didnt win a bunch of nba championships, and he didnt win seven super bowls or whatever, but he is the goat of this. And hes got the of what he does. Hes got the most famous line ever, some people think it was do you believe in miracles . I think it was, i think it was this, i think we have it. Live from the most powerful city in the world, new york. This is squawk box. Now thats not a. I. Generated. Thats real why we dont use it anymore, maybe we can, i dont know why, hes a viewer, a friend. Hes, like, an incredible guy. Hes so good that so he does he does i think 11 nfl games, i think, on thats what hes down to now. You know what his salary was . 11 million, i think. So it is like, he shows up, got to go to a football game, going to do the play by play, and someones going to write me a check for a Million Dollars for what i do. Hes that good. Hes that amazing. Thats my two cents on al michaels. Maybe hes watching right now. Dont know where he is. Saw him not too long ago in los angeles with his lovely wife. Lovely guy and hes 79 too. So all you people who think im going somewhere always a. I. Joe too. Going to come together, not go apart. A closer look at the pharma stocks poised to benefit from e rge in the popularity of weight loss drugs. Thats coming up next. Announcer executive edge is sponsored by at t business. Sponsored by at t business. Next level moments im really just here for the at t internet, its superfast so, any prelaunch concerns . What if nobody buys them . Thats mean level network. Oh, i hadnt thought of that thats probably not gonna happen can we handle that kind of traffic . The network can handle it i downloaded eight hours of true crime stories just during our last video call im learning a lot are you interested in safeguarding your investments with gold . Alamos gold is a growing canadian gold producer with a long track record of outperformance. Alamos gold. Invest with us. Our growth sets us apart. 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. I had 20 years of experience as an hr professional and i had reached a ceiling, so i enrolled in umgc. I would not be the person that i am today had it not been for the partnership with umgc. [crowd chanting] they ignored your potential, and mocked your ambition. But its not the critic who counts. With every swing and block, your game plan never changed. Some still call it luck. Let them. Because you know what its always been. Inevitable. Shares of eli lilly trading near an all time high, starting more than 90 over the last year. Joining us naow, louise chen. Great to have you with us. A huge rise in lilly and novo. And the only criticism that one might have is that maybe people are getting too ahead of themselves in terms of pricing into the stock, what future demand is. How do you address that as an analyst in terms of all the future applications they just released the positive sleep apnea data, so many other indications for the drug, which are still being studied that perhaps were too far ahead of ourselves. I dont think people are too far ahead of themselves on lilly. I think lilly and novo are interesting stocks. We have buy ratings on them. I think the downstream applications can be huge for the company and blockbuster products as well. And the one thing for these products to remember is they might likely get better reimbursement than obesity. Right. Exactly. They may be more likely to reimburse for sleep apnea instead of obesity. In terms of the medication coming online for future, better glp1s, there is so many other smaller players, how do you assess what the competition is out there . I get asked that a lot. I think for the smaller companies, the thing you have to keep in mind we dont have data for a lot of the products yet. In order to get into phase three, they have to have the commercial products. It is not clear the data is overwhelmingly better than what lilly and novo have shown. I think that remains to be determined. There are a lot of other mechanisms of action that are happening as well. But i feel that some of those are just trying to get into the market a little bit later in the game with something a little bit different shaded. Novo Just Announced 4 billion investment into new manufacturing. How do you sort of model out what they will need in manufacturing. Are they trying to meet the need that exists today with a manufacturing plan that will open up in a couple of years. And will the manufacturing needs change as they explore new formats for the drug. Yeah, so i think lilly and novo are ahead of the game on manufacturing. And they have been doing it for a few years now. It will probably take a few more years in my view to get up to scale to meet demand. That being said, i do think that they have very good manufacturing and theyre going to be very successful in that perspective. Thats something that smaller players really have to contend with as they enter the market. Our estimate is that it takes tens of billions of dollars to build a Manufacturing Network and five years from the time you break ground to get up to capacity and scale. Right. Louise, got to leave it there. Thank you for joining us. Just after 7 00 a. M. On the east coast. Youre watching squawk box on cnbc. Im joe kernen with melissa lee. We dont have a countdown clock. 12 hours. I got that right. For what . Among todays top stories, amazon plans to launch 9 00. I know, the debate. We have been talking about it a lot. Of course i know what it is. You were thinking of other things. Youre thinking about that 10 00 a. M. If you had written down in the squawk planner, you would know what i was amazon plans to launch a new Discount Store aimed at taking on chinese retail giants temu and shein. Not to be confused with henry shine, the dental place. Allowing chinese sellers to ship directly to u. S. Consumers. The storefront will feature a range of unbranded items, many priced under 20 each. State street Global Advisers plans to launch the first Cryptocurrency Fund in partnership with galaxy digital. State street is the Third Largest etf issuer in the u. S. Overseeing 4. 3 trillion in assets. And google has added new mobile short cuts to its chrome action feature that will let you call, read reviews for or get directions to a restaurant or other business right from the address bar. Google action which rolled out in 2020 lets you quickly perform tasks by typing in specific queries such as edit passwords or translate this page. Walgreens out with a new number, adjusted profit of 63 cents a share, thats 5 cents below consensus estimates. Revenue beat forecasts. Walgreens is now seeing fiscal 2024 profit. The ceo told cnbc that expectations of stronger consumer demand have not played out and that pharmacy Industry Trends continue to be challenging. That stock is down 4 immediately on this news. Lets check the futures now and see how were doing. Were looking at lower open across the board. S p 500 down by 7. Dow down by 58. Nasdaq lower by 38. To Frank Holland now with a look at this mornings premarket movers. Good morning, frank. Good to see both of you. Look at shares of micron, under pressure, you see down more than 5. 5 despite the company reporting better than expected quarterly results. You see on the chart, investors, theyre focusing on sales forecast. They failed to beat some lofty expectations. Theyre getting a boost from the a. I. Computing boom, demand is sluggish in the pc and smartphone businesses. Micron is the largest chip maker in the u. S. Coming up on mad money, Sanjay Mehrotra will talk about the recent chip pullback. Levi strauss also under pressure this morning, shares down big, down more than 15 . The Second Quarter sales of the jeansmaker falling short of analyst estimates despite a surge in denim popularity. Consumers have been generally cautious and not spending a lot on discretionary items. Along with raising the dividend for the first time in six quarters, levis is working on its website and reducing reliance on department stores. Nike, nike reports its results after the close. You can see right here shares off to a very tough start to 2024, falling the blue line, almost as much as the s p has risen year to date. Big divergence there. Consumer spending slowdown in rising competition weighing on the stock. Estimates have revenue coming in flat year over year with profit increasing by 26 . Morgan stanley says it expects the sportswear giant to guide below the street expectation due to lack of clarity in the companys innovation pipeline. They estimate it takes anywhere from 18 to 24 months for nike to bring new products to market. We had a nike investor on Worldwide Exchange who said hes looking for more clarity when it comes to new products to help drive growth in nike as it faces rising competition from hoka on running. Have you ever tried one of these hoka on running. I see you as more of a new balance kind of guy. I have hokas. Theyre very light. Theyre very light. I got the tan ones. Do they have the inch sole . No, the heel goes youre reading my mind. I see you as a new balance extra wide kind of a guy. Am i off base, melissa . Totally, yeah, no, i need light and i dont even know if i i guess if you use them for six months, does the foam need to be replaced . Is that true . It is like plann ned obsalesenc. I think youre off, frank. Nice try. Send me an explainer. Maybe im like joe biden in the morning. I dont understand what youre talking about. Coming up, former white house chief of staff bill daly joins us to talk about what investors should be listening for in tonights president ial debate. Andrews interview with brian chesky from the aspen ideas festival. Ideas festival. His take on the a. I. Boom an power e trades easy touse tools much more. Squawk box will be right back. 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 former President Trump are courting ceos and executives as the race for president heats up. Joining us now to discuss what wall street is looking to hear from both candidates at tonights debate, bill daley served as chief of staff to former president obama and commerce secretary under former president bill clinton. He was a democrat. Thats so weird, isnt it . Are you sure . A long time ago. Whos moved where . And citigroup guy . I was with wealth. So youre a bankster, a private sector guy. I dont mean banks i mean you worked with the private sector, so, youre not necessarily in lockstep with maybe a lot of things that the current fringe of the left is in lockstep with. Absolutely. Absolutely. Right. So i like having you on for that reason. But to talk about tonight, i know you think you think trump has issues, obviously, and people that vote for him, obviously have issues. But you concede that to vote for biden you have to overlook some things as well at this point too. Look, it is obvious based on the polling, people arent real happy with either one. And the race has been close. If you look at even though President Trump has been in the lead, it is really each of these states within the margin of error. So big surprise, we have a close divided nation, it is going to go down to the wire as it did four years ago, and this debate will be important. It will be. Because everyone has expectations. One is whether President Biden can come out and perform. And two whether press trump goes back to the style he had in the debate four years ago, and gets everybody all riled up. I think theyre both fighting to counter those narratives. Right. And i think at this point im not convinced that bidens going to President Biden is going to keep saying convicted 34 times by a jury of his peers. I dont think thats a smart move. And you have seen, who was it recently, oh, the guy im starting to like again, former Governor Cuomo was on saying, look, would have never happened. This case would have never, ever been brought by anyone against anyone other than donald trump. Maybe biden didnt orchestrate it. Maybe he did. He had a guy in the second one of the Justice Department guys did come and help alvin bragg. The way that was done, he raised 140 million after that because people in this country dont like Something Like that. There is no doubt that it, in a negative way, reverberated it against the prosecutor. The president got sympathy, President Trump raised a ton of money off of it and it energized his base because they thought there was a certain unfairness to pick on one guy. Nobody really disputed the facts of the case. But it was just whether or not this was a special prosecution for one person. What do you mean . What were the facts of the case . What facts of the case it is not illegal to pay off an nda. What they got him on, it was classified as an expense instead of as a campaign expense. Thats a misdemeanor and the statute of limitations was already over. You can argue all that stuff, but the fact is the case is over. In many ways it that will be reversed on appeal. It helped embattle trump. Right. What does biden run on . You know what i would run on . Infrastructure. I wouldnt run on the chips act. Im not convinced. We give all this money to intel. Do we know which winners and losers biden should run on infrastructure . He should run on getting that through. I agree. Why are you looking at me like im crazy . No. He agreed. All over the country, youre seeing projects being built off of that. And he should highlight those. Whether you have a bridge being built or a highway being redone, those are the things that not only create jobs, they create positives in the economy around the nation. And he should definitely run on that. To me, thats the probably the most important thing, that and the you can say, okay, after covid and we spent a lot of money and maybe we should have maybe not, we spent 2 trillion after that, maybe it is worth it because maybe there was some inflation that people are still feeling. But maybe well get something out of that at least. Yeah. Overall the economy is in good shape. You talk about it every day. Okay. But for a Certain Group of people, those who were anybody who gets a paycheck is making thats why i anybody making a paycheck is making less than they made when biden came into office. Those who were stressed before covid are stressed once again in a very wages are down 3. 5 . They were up 9 under trump. Thats what would be debated, whether or not people feel good about how can they feel good if they have less money than they had four years ago. Not everybody does. We dont. You dont. A lot of people a lot of people in the country are doing stock Market Performance was great under trump too. Maybe not as good. The unemployment has been low and tremendously low for the last two years. So, look, this is a close election. The debate tonight will be interesting to see how many people actually watch. We never had a debate in june. Whether people really focus. And then how many people stay with the debate. And then the spin tomorrow will be whether or not either one of them met the expectations, which is with social media today, it will start at about 9 01 tonight. Brass tacks. You think that not going to have a teleprompter, President Biden. You think he can bring it and wont have memory problems and wont look really . No question in my mind, yeah. You think four or five years from now, with World Leaders, you think he can do the job i dont know about four or five years from now. Thats what were talking about. Or Kamala Harris. Take your pick. Donald trump will be alive four years from now, four months from now, four days from now, four hours from now . No. Youre telling me not to believe my eyes. With trump, how is he going to act tonight . Is he going to be the dont trump of the first debate . He had covid the first debate. He didnt get tested that night, and he had covid and they knew he had covid and thats thats why i think he acted a little more aggressively than he would have than against hillary. Trump with covid is that animated. Biden without covid looks like he does. Thats an easy choice too, right . My guess is that trump will look better than he did four years ago. You think he cannot take the bait . Yeah, i think yes. I think he will be i will be surprised if he takes the bait. I think he will spend a lot of time going after the moderator. You talked about that with frank luntz. I think hes got a hes got a belief amongst the base and his supporters, cnn is biased against him. Youve never seen any sign of that at cnn, have you . All networks are unbiased. Everybody is unbiased, right . Unbiased . Unbiased. All. Everybody is. But i think hell spend a lot of time, and especially his allies starting with first minute of the debate to theend going after cnn. As i said, thank you for coming on. It wasnt so bad, was it . Never is bad. Always fun. Thanks. Up next, andrews interview with brian chesky of airbnb from the aspen ideas festival. From colorado, senator joe manchin and daughter Heather Manchin, the ceo of mylin and now americans together. Squawk box will be right back. Announcer time for todays aflac trivia qstn. Ueio meaning to give something that was once received as a gift the term regift was coined in what term regift was coined in what sitcom medical expenses, groceries, rent. It really helped close that gap. Go, go, go yay go aflac go duck the answer when squawk box returns. At aflac. Com wish we had aflac on our team. You can hello. Im ethereum. And im big finance. You look really tired. Just calling it a day. But its 4 p. M. Yeah, and ive been working nonstop since 9 30 this morning, so. 9 30. You dont say . Yep. Youd want a little shuteye too if youd been moving billions around the world. Well, actually, i do. You know, stablecoins, nfts, loans. People can access me 24 7. What . But look, everyones different. You should get your rest. Youll get after it tomorrow. Tomorrows saturday. [ethereum] monday. Youll get after it again on monday. I cant believe you corporate types are still calling each other rock stars. Youre a rock star. Were all rock stars. Oooo look look at my data driven insights, im a rock star. Great job putting finance and hr on one platform with workday. Thank you guys, can you keep it down. Im working. You people are guitar noises . Hand over the air guitar. Ive got another one. And now the answer to todays aflac trivia question. Meaning to give something that was once received as a gift the term regift was coined in what sitcom . The answer, seinfeld. Andrew is at the aspen ideas festival this week. He sat down with airbnb cofounder aaron chesky yesterday afternoon. You came out in part to sit in a conversation with one of your great friends sam altman from openai. One thing that i found was fascinating was you went pretty deep about what took place durening what was a dark period for him and the work that you were doing behind the scenes to try to help him. Yeah. What was really for you, though, the lesson of the whole thing . When you were in it . I think that there is an old saying the absence of information is filled with dirt. I think that everyone was assuming the worst of everyone else. And i think when you really unpeel it, people had much better intentions. There was a lot of fear, things were going so quickly, and as i uncovered what was going on, i realized there was a lot of misunderstandings, they didnt have full information, so people would assume the worst. And the other thing i learned was you learn a lot about people in a crisis. And they revealed themselves and some people, i think, werent the best. I say this as sams friend, i say this objectively, i was surprised in a good way how he was not in selfpreservation mode. When people are attacked, they go to themselves and sam was focused not on himself, but openai. That made me want to fight for him. What was the worst moment of the whole thing. Do you remember . The worst moment was when we thought that, okay, this is the worst moment, the worst moment was it was probably 48 hours in, the board had led us to believe he was going to get reinstated and right before midnight, we get information that emmet sheer is now the ceo, it seemed like the page had turned and sam and greg said well go to microsoft. I said you got to fight like this crazy you got to fight. He said, we want to do whats best for openai. We want to do what is best for the employees and if what is best for them to turn the page, it is to turn the page. I thought that was the end of it. Emmet sheer is also a friend of mine and that opened a new line of communication. And now there are many other things that happened, but i think that allowed us just to have open dialogue. How involved are you now with openai . Im involved to the extent that sam needs like advice and i try to help him. In areas anything that is not core technology, if he has a question, im what are those things . How to like product, design, maybe marketing, advertising, communications, that kind of stuff. Things that are above the layer of the stack of technology. How much do you think about the safety issues and also all the headlines that we keep reading about this debate that is clearly happening internally at that company . I think about it. But to be clear, im not involved in the company officially. I am not, like, inside the inner mechanisms. Im mostly focusing on giving advice on how do you manage an organization, how do you use digital trust, how much transparent is the right amount versus not enough . There is a lot of considerations. How do you tell a story to the public . How do you bring society along on a technological revolution . And we should be transparent about things that could go wrong, we also got to be careful about, like, a lot of overly existential pontification when we dont know what is goinging happen. And these are the practical five or ten things this technology can do for our lives right now. It is a lot of judgment. You went through your own did yes. Baptism by fire. Is there a moment you look back on that you think is parallel, something you learned from that . The thing i learned, you learn about people in a crisis. The other thing is you learn is you only survive because certain people have your back and believe in you. When the crisis happened, my cofounders, my board, totally had my back. If they didnt have my back, i might not have been as decisive. If i wasnt as decisive, we probably wouldnt have come out of it the way we did. That lesson for me is when i saw sam, people he needs people need to have his back. His company had his back, but people didnt know how to support him because no one was saying anything. I just said, like, were going to lean in, we have your back. It is remarkable how much the employees for the most part support him. I think that tells you something. I think that tells you that, like, if there is only one piece of data you should know, it is that the employees have the most information. And in that moment, they rose up and they said, like, this is what we want to do, we would rather be with sam somewhere else than with openai without him. Lets talk about airbnb, you cant go anywhere here without talking about a. I. When are we going to see a. I. Built in, in a real way, into applications in airbnb and also applications across the board . It is 100 great question. Over the next two years, so, i think, like, one of the observations i made is chatgpt came out 18, 19 months ago. I think we all had this feeling like there is a revolution, it is going to happen. And funny enough, you pick up your phone, look at every app on your home screen and theyre almost exactly the same. A. I. Hasnt changed our daily life. It captured imagination, our fear, hasnt changed our app. It turns out it has taken a little bit longer, maybe not exactly selfdriving cars, but that last 10 is where all the gains are. 90 of the tasks done, but it is wrong that last 10 , it is actually terrible. So i think next year youre going to see a bit of step forward and i think within 2026 youll see a giant leap. I think apps across the board, two to three years now, 2026, 2027, theyre going to look really different. Is it all one big chatbot. As someone who is into design, or is it going to be Something Else . It will be Something Else. I have a unique seat. I went to the Rhode Island School of design, im one of the only designers running giant tech company, s p 500, i dont think there is another one of us. Im a bit of an anomaly. One thing i thought about, and i had this conversation with many great designers, in 1984, the graphic user interface was it was the mouse, the point and click, windows. 2007, the multitouch, what we know as the iphone and mobile was popularized. What is the interface for the a. I. Age . I dont think it is goggles. I dont think it is a chatbot. I think a chatbot is very cumbersome for things that arent chat. If you want to check the weather, you want to chat the weather . No. You want a calculator, do you want to input through a sentence . Or touch the numbers . Every application is going on a different interface. Without being able to tell you what it is, i think it will be three dimensional. Not flat design. It is going to be like three dimensional space. Youre going to be able to walk into space on screen. So it is going to be more colorful, more three dimensional, it is going to be much more personal. If you were coming to aspen or i was coming to aspen, you dont think in the future you just say got the invitation to come to the aspen ideas festival, lets go. And then magically it would all just happen. Yes. This is a great question somebody talked about. Is voice the interface of the a. I. Age . And we believe that voice is a part of the internaface of the a. I. Age. If youre in public, you probably dont want to talk out loud. There is some privacy concerns. It is also, like, voice is it is if you get input back, i want to find me a shirt to wear. How does the a. I. Describe the shirt to you . Is words the best way to describe the shirt . It turns out it is probably multimodal. Probably voice, visual, it is a much more multimodal application than just voice. How far do you think we are from taking the invitation forward to airbnb and it all magically happening . A couple of years. Right. Melissa is right. Walgreens is certainly probably should talk about dow is being affected somewhat. Walgreens at a new low. Down 9 . Down 9 . If you say youre shuttering a significant share of stores in the united states. More than half of the 8600 stores, is that what they mean . More than half . Significant share, i would think it is more than half. Walgreens shutters a significant share of its roughly 8600 stores. Also cut its stake in a primary care provider, but also missed on profits, lowered guidance. There was nothing good out of this report. I cant do it all, obviously. There are a lot. In terms of the trips to the drugstore. Three times a week, i go zero, i order everything. How old are you . Like 30 . Old. But not as old as you. No. Youre not. But everybody stuff happens. The front of the store how much more expensive it is to do it through the mail. That was the story yesterday, right . It is still being done, though. I just cant imagine not having a neighborhood at walgreens. The boots part of the business, which we acquired, that was an acquisition that never worked out well. Greeting cards. Baby powder. Deodorant. What kind of margin do you think there is on deodorant. Front of the store is not good . I guess it is not anymore with walmart and think of all the other places we can get these things from, down 12 right now. Thats unbelievable. I need more details on what a significant share means. Im sure the Conference Call will be interesting. Yeah. All right. Were going to have much more from the aspen ideas festival in the next hour. Mi ucongp next, a check on the markets and some of this mornings movers. Maybe well revisit walgreens. Squawk box coming right back. Welcome back to squawk box. Were seeing a little bit of pressure on futures premarket. S p looking to be down by 6. Dow looking to lose 65. Nasdaq down by 34. Were watching shares of walgreens plummeting premarket after posting its quarterly results. The drugstore operator reported adjusted profit 63 cents a share, 5 cents below. Revenue beat forecasts. Walgreens is right now down by 14. 5 . Lowering its guidance for the year. It is closing a quote, unquote, significant share of its u. S. Stores. 8600 stores in total. It is trying to, as it says, basically align its u. S. Pharmacy and healthcare organizations. Tim wentworth saying expectations of a stronger consumer demand of consumers have not played out. Industry trends continue to be challenging. So there is a lot of things going on with this stock. It has a lot of it mentioned also a change in marketplace dynamics, which i think it is true, but, you know, this is not good. And it you know, my memory isnt what it used to be. We made the joke, walgreens booted from the dow. It is not in the dow. And the other company that we said past 2 trillion in market cap replaced walgreens is amazon in the dow. So, yeah. Bringing it together. And, you know what, it was february when amazon went in. That looks prescient at this point. You dont need to what is the market cap now on this . I havent looked. Though that is a new low. Market cap all the way down is that right . Did you see . I have 13 billion. Oh, god. Yeah. 13 billion. Thats not thats not a dow component. Watch cvs shares are also sliding in sympathy down by 2. 6 . Clearly not as bad as the 16 decline, but all things at walgreens is talking those are concerns for this industry. It really underscores the dynamic of the weaker consumer, of all the other Competitive Forces in terms of online, in terms of reimbursements, everything. It is all rolled up in one. Also, it is a different world. Compared to where in the old remember sears and kmart and woolworth and that used to be a staple of american and walgreens is the same thing. The amazons of the world are having a huge impact, they need to keep up, like walmart and target or you dont. This is you. Theyre going to talk about trump djt. Something going on with that today . It is up or something . Thats volatile. All the way back to 40. Just it was just at 26, wasnt it . A few a couple weeks ago, yeah. Last week, i think. Coming up, President Biden and former President Donald Trump set to square off in atlanta. Chll talk about the strategy of ea candidate and later in the show, chris sununu will be our guest. Squawk box will be right back. University of maryland global campus is a school for real life, one that values the successes youve already achieved. Earn up to 90 undergraduate credits for relevant experience and get the support you need from your first day to Graduation Day and beyond. What will your next success be . While i am a paid actor, and this is not a real company, there is no way to fake how upwork can help your business. Upwork is half the cost of our old recruiter and they have toptier talent and everything from pr to project management because this is how we work now. Weve always been competitive. Yeah. One of us always had to be first. First first [continue bickering in background] hold on, guys [car honk] first. Today, were first together. We love you, mom and dad. Thank you so much for making it possible. And now you can finally put yourselves first. Vanguard investments and advice. For college, retirement, and all of lifes firsts. Thats the value of ownership. What . Whats so shocking . I see the same prompter as you do, joe. I know you do. A lot less than 24 hours. Less than or tonight. Yeah, tonight. The first president ial debate of the it is today. It is going to happen tonight. You woke up on a thursday. It is going to be on thursday. The Bipartisan Commission for responsible federal budget is releasing a new and perhaps surprising analysis of the fiscal records of President Biden and trump during the first term in office. Eamon javers joins us now with more. Whats going on . Good morning, joe. In a new report first obtained by cnbc this morning, the committee for responsible federal budget says donald trump presided over spending increase of 4. 9 trillion in his first term, while President Biden by comparison has overseen 3. 8 trillion in spending increases in his first three years in five months in office. How did the committee arrive at these numbers . Well, they found that President Trump approved 5. 3 trillion of what they called growth primary or noninterest spending increases over ten years. 2. 5 trillion of that noncovid related. That was partially offset by roughly 500 billion of primary spending cuts. Trump net spending increase would be 2. 1 trillion without covid. For biden, the Committee Found that he approved 5. 7 trillion of gross primary spending increases and 3. 9 trillion without covid. But biden also had 1. 9 trillion of primary spending cuts, which offset the higher spending that we saw there in his term. Without covid, bidens spending increase would be 2. 0 trillion, the Committee Says. Bottom line, the Committee Says given trumps massive tax cuts, his record on the total deficit is much worse than bidens. Trump added 8. 4 trillion to the tenyear debt as opposed to bidens addition of 4. 3 trillion. In either case, guys, the committee not necessarily happy with either number. But trumps number significantly higher than bidens number when it comes to debt and deficit in the first term. Well see what happens, if either man gets a second term. Back over to you. I saw people kicking that around yesterday. And little fuzzy math going on there. Covid skewed everything, for both president s. As we know. And if you look at the noncovid numbers, joe, it is much closer. Trump is still higher, but it is much closer. And then the question is who gets the who gets the political ones three years and ones four years too. Three years and some months and four years, exactly. The other question is, who gets the political credit and or blame. Biden, you remember, was forced by republicans on capitol hill to make some of those spending cuts that make his total here look pretty good. Was he forced to do that . Did he know he was going to do that and give it up in debate to let the other side have a win . You can never parse those things forever. Thats what the record shows. It is amazing. Both sides can the way that you can frame it, there is no wonder why the public, you know, for example, biden talks about cutting the deficit. And thats really because spending less than previous years. Thats because were spending, like, 4 trillion, 5 trillion on covid and if you spend if you have a deficit of 2 trillion after 4 trillion, or 5 trillion, you cut it. Youre still measuring the rate and youre still measuring the rate that youre digging the hole. The deficit is a measure of how deep the hole is continuing to get. And jobs created. When you go jobs created is another you start at the bottom of a pandemic and, you know, jobs that were lost come back and you add those as new jobs, thats not but then you get inflation and you talk about that. What caused the inflation . If youre going to if youre going to take credit for reducing the deficit because of the pandemic, you know, then you got to own the i dont know. It is all i think if you look at it, though, the lesson here, joe, the bottom line lesson is that both parties, when theyre in power and control congress and the white house dont cut spending, right . You talked to a lot of people, mick mulvaney, particularly, who was omb director and chief of staff under trump, he will tell you that republicans, you know, when theyre in power, there is just no political will to cut spending. Because that hurts. It is a political cost. So they just dont do it. Theyll talk about it out of power and then they wont do it in power. You see the same thing on the democratic side, except democrats dont talk about cutting spending as much. They talk about the deficit, but when theyre in power, they dont do it. Because it is a political cost. You can brag about the regulatory environment, republicans can, i think. Thank you. Thats another subject, but yeah. All right. Joining us now on with what americans want to hear from the candidates, former Trump White House legislative director mark short, cnbc contributor and former democratic congressman. Joe crowley. Great to have you with us. Mark, ill start off with you. You make the point that voters actually like trumps policies, but he may be his own worst enemy. Hes got to be thoughtful, hes got to stick to the message. Right. I think the reality is that the policies of those four years are generally favorable. It is unfortunately the personality that i think can get in the way. I think the question is how has he performed tonight. I think with joe biden, you have an unpopular president whose policies are unpopular too. I think if donald trump prosecutes the record of frankly, you know, cumulative, even though the inflation rate is declining, cumulative 20 plus, the highest since the jimmy carter administration, you can prosecute that case well. I think you can prosecute a case that the inflation the inflation crisis, also immigration crisis, we now have i saw a stat the other day, there is more known illegal crossings in the population in more than 40 states, the united states, and ultimately, joe biden has promised a massive tax increase on millions of americans if he gets reelected. If donald trump focuses on those issues, those are in a sweet spot for most voters. Immigration and inflation, you could even make the case the Inflation Reduction Act will increase inflation in the long run because of near shoring. How does President Biden overcome that, because when the question is asked are you better off than you were four years ago, Many Americans will say, i dont feel better off at all. And you point to the results from mcdonalds or target, that indicates that consumers are under pressure. Yeah, created more jobs than any president in history of the united states. Increased the wages among men and women across the board. Moving in the right direction, i think what is really interesting, though, is that republicans consistently have said how incapable the president is. How hes too old, all these other things. At the same time, saying hes a great debater. We have to go in here tonight, expectations that joe biden is one of the greatest debaters ever. It is interesting to watch people kind of just flummox themselves with talking about joe biden. Remember this, we never had a president convicted of felonies in their president ial election ever in a debate. Well see what really transpires and how those issues start to come out as well. You know wages, real wages are still down from weekly wages are down from when joe biden took office. You know that, right . We know there is more jobs created and continue to and we just talked about that. Let me go to joe, i see jobs from a pandemic, you cant credit those as creating new jobs. But just real wages are still down since biden took office, which means i love watching you i love watching you tripping over yourself just a moment ago in terms of defending then trump and his spending and blowing up the federal deficit. You cant have it both ways. There is i would i think the American People tenyear numbers and now you never let me finish. I love you. I love you. If you just acknowledge that peoples paychecks dont go as far as they used to when biden took office. Thats all im asking you to do. Were moving in the right joe, were moving in the right direction. Let me finish. I love you. You got to let me finish. Were move ing in the right direction. Some day we might get back to what we were making four years ago. I think the point is, though, joe, the numbers show that wage growth has not kept up with the pace of inflation. And so americans you can americans feel, and if those jobs werent there they dont feel good about where they are. The question is how does President Biden address that . Im not trying to were not trying to take sides or anything. That going to be a major issue. We see it time and time again with polls, surveys. Many americans do not feel better off, because their paycheck doesnt go as far. We are moving in the right direction. I think thats what the president will talk about tonight. We know he has passed the biggest jobs bill in terms of infrastructure package. Things yet to come. That the next president , i hope it will be joe biden, will take credit for. All right. Weve run out of time. A great debate in and of itself, guys. Sorry. Love to talk to you more, mark. Joe . I still miss crowley compared to aoc. Tell tyou that. And no thanks to the stock market opting for what they see is more longterm investments. That story is next. Well be right back. Hello. Im ethereum. And im big finance. You look really tired. Just calling it a day. But its 4 p. M. Yeah, and ive been working nonstop since 9 30 this morning, so. 9 30. You dont say . Yep. Youd want a little shuteye too if youd been moving billions around the world. Well, actually, i do. You know, stablecoins, nfts, loans. People can access me 24 7. What . But look, everyones different. You should get your rest. Youll get after it tomorrow. Tomorrows saturday. [ethereum] monday. Youll get after it again on monday. I had 20 years of experience as an hr professional and i had reached a ceiling, so i enrolled in umgc. I would not be the person that i am today had it not been for the partnership with umgc. When were young, were told anything is possible. I would not be the person that i. But only a few of usn go out and prove it. Witness the greatness of anna hall on a connection worthy of gold xfinity mobile. Only xfinity gives you the most powerful mobile wifi network, with speeds up to a gig in millions of locations. And right now, xfinity internet customers can buy one unlimited line and get one free for a year. Get the fastest connection to paris with xfinity. A vast generation divide is opening up between wealthy young investors and wealthy older investors. Robert frank joins us no you with more. These two wealthy younger investors. What are they no. Are they finally making it, some millennials . Because of the great wealth transfer and that tax change parents are talking about. Oh, okay. Or giving them money. Put it right there. Nearly three quarters of wealthy millennials wont get above average returns with traditional stocks and bonds according to a new study from bank of america private bank. Investors over 44 still have a lot of faith in the stock and bond portfolio. Asked about the best opportunities for growth, the younger investors listed real estate first, crypto second, followed by private equity. Same question to older investors, domestic stocks with real estate and emerging market stocks behind. Nearly three times more alternatives in their portfolio compared to xers, and about 25 stock. Collectibles, huge difference. Young wealthy earn twice as likely collecting watches classic cars and wine. Nearly a third interested in collecting sneakers. Older investors say they collect because they enjoy it and rarely sell. Younger investors see it as part of their investing strategy. More likely to trade in and out of their collectibles. A lot more about the great wealth transfer and where the wealthy are investing in my new newsletter, it is cnbc insidewealth. Latest issue came out ten minutes ago. Sign up, click on that little code there and you can cnbc, back slash joe, you mentioned how many investors. Millionaire. 3 million plus investable assets. How many are because of tax cuts and jobs act you can give away 27 million as a couple to your kids without triggering the estate tax. Taxfree give 27 million and two expire next year. So wealthy families have been shoving money out the door as quickly as possible. Really didnt i was kidding. No. Im not kidding they really didnt make it themselves . They got it from their parents . Some making it themselves, whats created vast wealth among younger people accelerating compared to other generations is this transfer of wealth right now, because of that tax change, which allows 27 million taxfree. That could change, but they expect 84 trillion to pass to the next generations in the next 84 trillion. In the next 20 years. Why these investors matter and why Wealth Management firms care about these different dynamics and priorities with younger investors. Theyre going to be a big force in the market. Amazing. Thank you, robert. Up next, investors getting ready to jobless claims and real gdp data. Futures indicating lower across the board. Be right back. It is, wow, right exactly 8 00 a. M. On the east coast. Youre watching squawk box on cnbc. Im joe kernen along with andrew ross sorkin. Thats it. Thats it. Andrew, its just us. Is it just the two of us. Is it 6 00 a. M. Out there . Its 6 00 a. M. Out there, isnt it . 6 00 a. M. 8 00 a. M. New york. 6 00 a. M. In aspen. Exactly. Two hours. I remember that. Gets confusing with Daylight Saving time, who does it, who doesnt. The at spespen ideas festival. Becky had something to do. No. She had something to do. Do you believe this . Sorkin . Walgreens, looking at at quarter of stores, still evaluating those. Do you have a good, a feel for exactly what happened here . Is it changing that much . Do you get all of your drugs through the through the mail or online or something . Getting them in the mail, online and by the way, theres a big issue of just how much theft at these stores and what could be on the shelves. A big issue. Because its a pain to go in and you have to get someone to get the slightest thing. Razoradvil. Looking for, Bertha Coombs has a lot more and well be talking to her in a second. Shares of International Paper are down this morning. The Worlds Largest pulp maker based in brazil, talks to buy the company. And elon musk selling insider shares 112 each in a tender offer according to bloomberg, placing their value at roughly 200 billion. Back to you. Whats going on here at the aspen ideas festival. Nbc universal News Group Media partner here and a. I. Artificial intelligence, of course, the topic du jour. Cant go anywhere or anywhere else without talking about it. Center of the revolution Openai Sam Altman and brian chesky took to the stage with nbc nightly news anchor lester holt. Altman opened up about being fired by the board and calling in chesky for help. The board firing me coming back, brian was an enormous help during that. Obviously it was a super painful experience, but i do understand why anxiety levels have been so, are so high. And i think the previous Board Members, like, theyre nervous about the continued development of a. I. Had whatever feelings they had about me and how we were doing things, and although i super strongly disagree with what, what they think, things theyve said since, how they acted, i think theyre fundamentally good people who are nervous about the future, and trying to figure out how we get to a good outcome. Im super skiesed with the new board. Theyre extremely constructive and helpful and experienced and strong, and its been a very productive thing since then, but that was a horrible experience to go through. Not during the moment where it was just like this is a crazy thing. Lets figure out how to undo and it brian was unbelievably helpful. Then the period after that, where i just had to, like, kind of pick up the pieces in this like state of emotional shock was really bad, i n. I noticed in the first 24 hours not a lot of people sticking up for sam. In my darkest times and crisis had people stick up for me and thats what i wanted to do for sam. Joe, revealing conversation. One of the first times they went indepth at that level about it. Of course, you saw brian chesky earlier on the broadcast talking about some of these issues as well. Just about what it was like in the midst of those headlines at the time. Seeing one of the new Board Members, larry summers, talking to him about the economy with them a little later. Now on the board of openai here and later today, peter thiel. Bring you that conversation on the air tomorrow, of course, after the debates and maybe get some of a preview about the debates from peter thiel as well. Hes tried, i think, to stay out of politics this round, but im hoping maybe hell give us a lot taste whats going on in his head about it all. And maybe, he may be one of those quiet guys, andrew. Right . I mean, he doesnt say much anymore. And why does anyone need that . You know . When youre a tech guy. Did he really mean what happened last time he put his foot, or his toe in the water of politics . I mean, what did he get out of that exactly, do you think . Whats the upside for speaking up or doing anything . So i think those sonnenfelds piece. Did any of those guys he was talking about, are any of them on the record giving money to biden . And thats the issue. Not seeing a lot of people giving on either side this round. Neither. Obviously when yep. But he would say, well, normally 70 of republicans in the past, always he would say, well, never gave money to democrats. Be able to say that, but i think the real story was that these guys have customers, and employees that are on both sides of what were going to be watching tonight, and who its crazy to poke the bear on either side, if youre a ceo. I think thats true to some extent and were going to have senator manchin here along with his daughter heather. Of course, former ceo, being outspoken about politics. A little bit different in that its unclear whether, if you were to Say Something about President Biden, whether you would worry genuinely retribution about saying something. That dynamic is a real issue. Andrew, shocked where a ceo, backing, also backing some of his policy. You heard the other day say you put in unrealized wealth tax and youre going to destroy an entire industry. There are other reasons policy wise, but no denying that trump is a, the first time in history, theres ever been a candidate that can inspire such i dont know what you call it. I mean, you get twitter. You see what yep, i do. He is a different kind of candidate and the media has said that. He is a qualitatively different candidate across the board for supporters and for haters. Right. Were going to talk about that, by the way. Senator manchin, by the way, just arrived, and his daughter will be here in a little bit and well talk about all of this. Hes a patriot. He knows that and saw him in davos. You pulling one side i pulled on the other side. Looked like we were going to split him in two, but give my best to both the joe and heather. Back to new developments. Walgreens, closing many of its underperforming stores. News comes reporting fiscal Third Quarter results. Bertha coombs joins us. So theyre looking at maybe you can clear that up for us. Looking at a quarter of them. Doesnt mean closing a quarter . No. But potentially that essentially, joe, in the era where the standalone pharmacy chain is or the of existential moment. Walgreens coming in with a mixed earnings report. Missing on the bottom line. Lowering its outlook. Revenues did beat at 36. 4 billion, but earnings were a nickel below at 63 cents adjusted and guidance essentially saying fiscal Fourth Quarter comes in about half of what the street was looking for. Pharmacy continues to be one of the areas where theyre feeling pressure. Although the back of the store did work, did produce better sales and better comps. Front of the store very much a problem. Comps down there 4 between consumers not spending under discretionary and the theft problem, which we call shrink. The ceo says looking at reevaluating their footprint. Tim wentworth says they plan to close a significant number of stores. At this point only 75 of stores bring in what is their profits. Nonprofit ones hit by shrink but willing to work with local officials if they can come up with way to help curb that problem. They also plan to reduce their investment in village and deet. The primary Care Services expanded on under former ceo ros brewer. Theyve cut back on that. Theyre going to lower their invest there to get more liquidity, to reinvest in stores, to build up the ones that arent profitable. The Health Care Segment actually posted a smaller than expected loss, and adjusted positive ebitda or cash flow. So thats looking better. Rightsizing. Overall, joe, a question of them trying to get costs under control. The one thing right now that is working ironically, its bootsuk. Talk of selling in a off. An area that performed. Tim wentworth told me one of the things working for us so theyre not selling that anytime soon. Back to you. Okay, thanks for clearing all of those things up, bertha. Thanks. Talk markets ahead of key Economic Data later this morning. Joining us now, head of Investment Solutions at citi wealth. I am hard pressed to find any weve had some on recently but hard pressed to find anyone whos not sort of just along for the ride as far as momentum goes. For this stock. I think theres a number of things id point to. Actually pretty constructive for the market overall. You have to look at first of all just the cash that has been sitting on the sidelines. You have about 6. 5 trillion in money market funds alone. Look at all cash balances almost double that amount. A lot of cash waiting to step in. I think also the trajectory of the fed when we look at the probability of a rate cut in september, not around 70 , with november pricing in as 100 . So knowing that rates have peaked that inflation, starting to see cooling in that data. Seeing cooling with the labor market as well. So i do think it is a reason to stay invested, but be diversified across the opportunities that exist in equities and fixed income. What i mean. So did you feel the same way all through last year . That was a much more unbelieved rally, and we went up 24, 25 . Now everybodys onboard at 5600, 5700 for s p targets. Whats interesting go ahead. Yeah. Interesting about last year, joe, is that the recession a lot of people anticipated happened last year. So last year in q4, 7 out of 11 sectors in earnings recession. The rally that we saw was massively concentrated within the magnificent seven. This year were expecting that youre going to see 2024 end with 10 out of 11 sectors coming to profits growth. So this broadening out story, we dont necessarily see it in the share prices we are seeing it in earnings. And we do believe that theres opportunities in that broadening story. Going into the second half of this year. As far as technical factors at this point, does the i dont know. Does the complacency present a problem . Lack of volatility, 2 moves, does the, you know, the narrow leadership, none of that presents, if raising an eyebrow, doesnt it . This might not be, you know, totally on firm footing . I think when you look at the Overall Index level theres a lack of volatility and i actually think thats an opportunity. Foreign investors who are worried about elections, worried about geopolitics, theyre pore worried about light liquidity over the summer months because volatility is muted at the index level giving you opportunity to put hedges on and stay invested. U thi i think under the surface, volatility in semis and chips recently. So i do think from an idiosyncrasy seeing that under the surface. Undex level put on hedges stay invested and diversified but get through the next couple of months. Okay. Well check back. See whether that comes to pass. Kristen, thanks. See you later. Thank you. Coming up, newly independent senator joe manchin and his daughter Heather Manchin will join us to get political donors to back centrist candidates. Stay tuned. Youre watching squawk box on cnbc. Are you interested in safeguarding your investments with gold . Alamos gold is a growing canadian gold producer with a long track record of outperformance. Alamos gold. Invest with us. Our growth sets us apart. 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 food isnt just fuel to live. Its fuel to grow. My family relied on public assistance to help provide meals for us. These meals fueled my involvement in theater and the arts as a child, which fostered my love for acting. The feeding America Network of food banks helps millions of people put food on the table. When people are fed, futures are nourished. Join the movement to end hunger and together we can open Endless Possibilities for people to thrive. Visit feedingamerica. Org actnow box. Futures right now, you can see the dow jones down about 7a points. Nasdaq down 35 for a while. Sorkin, we were just for a second, said the dow was getting hurt by walgreens boots, but remember what we said . Walgreens, amazon booted walgreens boots out of the dow back in february. So that, 13 billion market cap, cant be that with a 13 billion hows manchin looking . A younglookin fella. Isnt he . Hes right here. His father a proper introduction. Also talk about walgreens, heather probably has a view on this. West virginia senator joe manchin is here recently announced switched registration from democrat to independent. Heather manchin is here. The senators daughter, former ceo of milan and founder and ceo of americans together to back centrist kacandidates. Great to have you here. Joe, good morning. You look good for 50. Cant believe it what do you do exactly . Whats your secret . Set free, joe. Ive been set free. Im an independent. Set free. Trying to promote those democratic ideals, must be easier for you. You know . I just have Good American ideals. Thats all. You woke up early for us. Appreciate it, on debate day, and im hoping both of you can expound on what you think were going to see tonight, and how important or not, maybe, depending how you view it, tonight really is. Andrew, what i would like to see and what i think im going to see, i have no idea. A lot could happen. It could be a firework as we know or basically two people i want to see quality people who can lead this country. Im looking for that. Looking for the leader of the free world to show the rest of the world we can lead and we can come together. So i know as divisive as our country is right now people picking sides. Almost like a sporting event. Its not. Its not. Youve been a biden man, though, in the past. Ive known joe biden a long time. Weve been friends. I want joe biden to be the old joe biden ive known. Hes gone too far to the left and weve had this conversation, he and i. Like to see him go back to the centrist joe biden hes been. Never looking at the other side as your enemy but a friend with a different idea. Now its to the point just going at if youre a d, supposed to hate r. If youre an r, youre supposed to hate ds and i cant take it anymore. I like both sides and want to work with both sides. I want to ask heather, as a ceo. Could you see yourself voting for former President Trump . I have a hard time and tell you why. To me, weve been able to 250 years navigate through really tough times. What would our Founding Fathers think about today . Proud of us governing ourselves. With that transfer of power and rule of law, the two things, staple anchors we have. And former President Trump basically, im afraid, would challenge those to where he doesnt accept orderly transfer of power, or protecting the rule of law and his judicial system. Thats all weve got that makes us so much different than any other place in the world. Your mind made up there . Or saying tonight, something would change it . I dont know. Well have to see. Tonights a big night. Well see what happens. Heather, speak to this, though. Youre a former ceo of milan. Spent a lot of time in the Ceo Community and weve been having lots of conversations even in the past week or two whether ceos are supposed to speak out, not speak out . Whether this year is somehow different than in the past . Sonnenfeld piece in the new york times. Weve been debating. What do you think . Like everything else. Weve gotten to such a point its so weaponized to have an opinion. I think that what makes your life compromised, common ground, getting ceos do it every day. Youve got to find ways to navigate your way through the public markets, through your industry. Wep we should be able to sit down with administrations and with senators and congress and have discussions about what needs to happen on a policy, and weve made it so personal that if you, you have to either like everything or nothing. Youre pitted against a side. I feel for ceos today. Its like, i cant make a i cant comment on a policy good or bad, because then that means im endorsing everything about everybody. How much of it today is a worry about what the customer is going to think and how much is a worry about what the former president might think if he becomes the president . Right . I mean, part of it is that. Sort of a customer issue. Shareholder issue and then, by the way, what government could do to you. For sure. Thats the problem. Not only not only are we weaponizing it, but our politicians are weaponizing it. So when you hear people lash out to want to call out a position that a company is taking or a ceo vocalizes, i think the personalization is whats got to end. We have to have respectable conversations with each other again, and not hold, and hold each other accountable to words. What do you think . As somebody in politics . Let me just say this. For the last decade can i have not heard anyone saying, enough. This is good for the country. Lets do this. This is good for the country. We know that weve got to fix the border. We know weve got to tackle this debt. 34 trillion, almost 35 trillion of debt. We cannot stain this. First time signs world war ii playing more in interest to satisfy the debt than we are to defend our country. Makes no sense at all and were digging ourselves a hole. We know how to fix this. Bottom line, theyd rather blame you. The system works, the businesses, democrat and republican. If i can blame you, i look better than you. Hold on. You just made two points about immigration, the border, really, and about the debt and deficits. Yeah. I think a lot of people would look at President Biden and say, hes not, not scored on those fronts. Well, as far as put it this way. As far as on the border saying from day one. Fix that border. Got to basically control the border. Cant have pardon at the border and catch and release and everything that went on. He can say defending himself, President Biden, that out of compassion for people displaced around the world after covid, but never it went too far. Got overrun. Now can say also, but republicans had a deal. Bipartisan deal and james langsford a good friend. Wasnt sure he could ever good thet but he did and then walked away from it because of President Trump. Whos the worse . Follow me . Politics. Whats wrong with politics . We could fix the gun problem, fix, in 2013. Had a bill. We had the Manchin Toomey bill in 2013 on background checks. Politics prevented that from happening. Joe . Senator, i just cherry pick different policies and you can take the ic ta the politician out of West Virginia but you cant take West Virginia out of the politician, i dont think. You had problems with Bidens Energy approach. Just no two ways about it. And now were seeing it come home to roost and for gm and a lot of these companies that are, you know, rushing this transition, and so thats one you got to put that in trumps put your check mark in trumps policies as far as that goes. You got a problem with influence peddling and what was going on . You have no doubt in your youre sure joe biden didnt benefit whatsoever from any of the stuff that was going on around the world with his son or absolutely sure . Well, joe, first of all. Go back to the energy. If i can talk about that. I know, but that because of 80 oil. Not from number one producer, joe. Producing more energy. In spite of right. Were producing more energy than anybody in the world. Number one producer. 38 trillion cubic feet of gat. 4. 7 billion oil and on track to do it again and investing in new technology as far as small reactor and nuclear bringing back. Hydrogen jumming on. Coming on. My problem with the biden administration, the energy bill is doing what we wanted it to do. Trying to implement a piece of legislation it didnt pass. I said stick with the bill you p signed, we passed. Bringing investments back. Cant overreach and not bring manufacturing back because allowing china to still compete unfairly with people trying to they pulled the rug out from under you on permitting . Slippery but still fighting it. Were going to win this thing. Okay. As an outsider, maybe you can do it. Totally avoided the other thing. Oh, no, no. The other thing i was trying to slide through that one, too, joe. You caught me. Both of them, yeah. You dont have to answer that. We wont get anywhere. Its a bad situation. Bottom line is, theyre being scrutinized every way humanly possible. I believe in the rule of law, rule of law. No ones above the law, President Biden or former President Trump or anybody else. That said, if he said something benefited unfairly used his office. One thing, the blind trust immediately making sure i did not have any tentacles as far as where i could benefit from. Heather, can i ask you, pivot the conversation for a second. When we came on the air talking about walgreens. Yes. You are a Health Care Expert talking about health care and how to fix the country for a long time when it comes to health care. How would you make sense of these headlines this morning about walgreens . A lot of americans are waking up thinking, goodness. My store, store closest to me may be closing . Right. I think its the issue thats been an issue for now decades. Transparency. You have no idea. Its the only industry you walk up to the counter to purchase something and have no idea what it will cost and costs Something Different every month. Were the best shoppers in the world and iscannot shop for our farm pharma pharmaceuticals. Cvs and walgreens a standalone model. What a pbm will allow you to hide or give you cushion we saw pbs buy, did you say good for country or bad for the country . Should the pbms be a, youre aing 100 not . 100 not. That integration made it more okay. We didnt have it as a standalone. 2016 i continued to talk about the fact we need to be able we have a trillion dollar industry no one on capitol hill knew what it was or what they did. They still barely do. Thats a problem. Congress understanding tentacles and how basically theyre jacking prices up. Medicaid and medicare, all buy into the v. A. System and let v. A. Too the buying, lowest prices possible. Which is better on health care . Im not sure. Either one of them from a standpoint getting a handle. Either one talking about pbms . None of them. Transparency would help. No value to the process. Pbms. To the cost what youre spending and basically bringing prices down. Nothing. Quickly before we go. Who do you think former President Trump would choose as his v. P. . Who would you like . Well, i know all the people that are i dont know doug as well. Im partial to governors. Okay . Im partial to anyone who had executive experience. Got to make a decision. Governor cant be a democrat or republican. Got to be governor of their state and make decisions every minute of every day to make life better for constituents. So i think the dark horse might be doug. You think ever an opportunity truly for an independent Third Party Candidate . Were going to make sure that happens. I think one thing on americans together. The reason we started it, we have got to change the incentive structure for politicians. Right now its completely out of whack, and just like a corporation, the incentive structure drives performance. Have to change the inceptive structure and what were going to try to do and build a center for the center of american politics. People are unhappy with the choices they have. Going into tonight and going into the election in november. The process for the political process we have prevents us from having more options. Thats got to change. I want to the say as an american. As an american me being a u. S. Senator 14 years i dont care whos elected. Ill make my choice, and my vote, one vote. But as a senator, and as an american i want to make sure i do everything i can to support the person, the transfer of power or stays where it is, do everything to make them the best president and make all of us proud americans. Senator manchin, thank you both for waking up early, being with us. Well be watching the debate tonight. Yes. Thank you, both. Joe . That was good. Hes still well, of course he still has it, but i dont think hes finished. And im sure heathers not finished either, andrew. Look forward to watching what happens for both. Time for breaking neconomic numbers. Rick santelli . A long list of important number. Start with initial jobless claims. 233,000. Close to expectations following 239,000, which was a revision. 233,000 just to put some perspective. Recent Highwater Mark 243,000. That was at beginning of the month. That was largest since october of 23. Look at continuing claims, which have been staying above 1. 8 million, remain there. 1 million 839,000 hotter than expected. Rearview mirror lose a bit from 1. 213 to 1. 281 million. 1 million 839,000. That is the highest level going back to, aww, november of 21. November of 21. Lets look at gdp. Shall we . Even though it is the third time around the block. This is first quarter. Remains 1. 4 . Excuse me. Thats expectations. Thats 0. 1 hotter than the last look, which was 1. 3. This quarter 1. 4 weakest going back to minus signs postcovid of Second Quarter of 22 when it was minus 0. 6 . Look at consumption. This is interesting. Considering this is the third time were looking at this, consumption, which was ramped up now goes right back down. Jumped up to 2 . Back down to 1. 5. 1. 5, slowest growth of consumption since Second Quarter of 23. Look at the price index. It moved 0. 1 hotter from 3 to 3. 1. 3. 1s hottest since the Third Quarter of 23 when it was 3 boyne 3. 3. Important fact. This quarter evaluating and Third Quarter of last year moved down to 1. 6 in the last quarter of 23. Its resurged to some extent. If we look at the core aspects of this, also 0. 1 hotter at 3. 7 versus 3. 6. Equalling the Second Quarter of 23. Go to beginning quarter of 23 to find a hotter number. Up 5 and once again in between all of this the third and Fourth Quarter of last year were at 2 . Now lets go to durable goods. Shall we . Durable goods headline number, up 0. 1. That is much better than we anticipated. Looking for down half of . Strip out transportation, it deteriorates into a negative number. Down 0. 1 and down 0. 1 after a huge revision down to last month. Excuse me. Not a huge. On the headline 0. 6 to 0. 2. Transportation remains up 0. 4. Look at finally retail sales quickly. Inventories. Retail inventories up 0. 7. Wholesale inventories up 0. 6. Much bigger builds than we anticipated. Whats the aftermath of all of this . Interest rates moved down a little from loftier levels on longer maturities. Preopening equities improved a bit but still in negative territory. Lots of numbers to decipher. Back to you. All right, thanks, rick. Get Steve Liesman at least to start with sdecipheration . What is that . Decipher numbers. I said we got you and you can begin some of the decipheration. Im going to look that up. If its not, should be. Look it up, joe. Youre a wordsmith. Ill go with you on it. I dont know if ricks still there. I cant find, whatever reason the number im looking for, which is the capital goods investment x aircraft. A caution on the minus 0. 6. Minus 0. 6 of a percent. What i was looking for. Thank you very much, rick. I want to talk about this issue, joe, which i have been talking about several months earlier. Which is we have rifts in the economy no apparent weaknesses. Im afraid some weaknesses are showing up. Jobless claims number bugs me a little, because juneteenth last week and that could have an effect on these jobless numbers because it happened middle of the week. 25 of people still use the phone or go inperson to get jobless claims. Rick, correctly he made a point about the continuing claims being on the rise here. So we need to watch that. The capital goods shows perhaps that, the Capital Spending numbers which had been pretty good, now weakening. What we had in the first quarter, joe, i think, was kind of like a faux weakness. Not with the consumers, a little weaker than we thought. Still, the core numbers of spending by business and consumers were good. Second quarter seems, joe, real weakness going on. And concern that maybe now were in this 1 to 1 p. 5 gdp range n totally created by trade and exports. Something worth watching on the jobs front. Something worth watching on the Capital Spending front. Right now as we look to maybe some gathering weakness in the economy and i think thats perhaps why yields declined. Joe, back to you. Thanks, steve. Rick, are you gone . Im here. Rick, maya sent me, nothing fuzzy about those numbers, those trump biden deficit numbers. Something weird. The assumption. What was it about that deficit . Well, i think whats fuzzy about the numbers is, so we all know covid put us in a very strained situation in terms of spending. The country and the world were in an unknown place. But once the issues were known and how we dealt with spending that money was not very good, and how we continued to spend after, for the most part, started to get a much better grasp on the situation is another issue, but the fuzziest part is how we deal with the static versus the active handicapping of tax cuts and many of those issues. Because they improved certain conditions, improved Business Conditions for lowering Corporate Tax rate and created onshoring and much of those benefits are lost in the spending column. Thats the problem we have. The spending column. Its still you can still make numbers do a lot of things, depending which side youre on. See it all the time. Of course. Look its a the krtraditional media. Do it every minute of every day. Everybody tells me disposable income up, wages down. Disposable income included covid payments. Coming up, governor chris sununu telling us what hes looking for on the economic front in tonightsigy hhl anticipated president ial debate. I think hes, believe it or not, a trump backer now. Squawk box will be right back. Okay, team oh, thank you so much i couldnt have done it without you. Honestly, i dont do a whole lot here. Im really just here for the at t internet, its superfast so, any prelaunch concerns . What if nobody buys them . Thats mean or, what if everybody buys them . Oh, i hadnt thought of that thats probably not gonna happen can we handle that kind of traffic . The network can handle it i downloaded eight hours of true crime stories just during our last video call im learning a lot daughter hey, dad. Dad hey, sweetheart. Daughter what are you doing . Dad im gonna clean the fence. Daughter its a lot of fence. Dad you wanna help me . Dad aim at the wall, but get closer. Daughter gasps what the . daughter alright. Dad side to side. When you work with someone who knows a lot and cares even more. You can do this. Youre unstoppable. wow. Are you kidding me . You can do this. At truist, we believe the same is true for banking. The debates tonight. 9 00. Joining us now with a statelevel view of the president s race and what hes looking for from the candidates, New Hampshire republican governor chris sununu. I guess i could have written this intro, governor. We dont want to bury the lead. You were on this show multiple times as a backer of governor haley, ambassador haley, and youve got plenty of criticism that you levelled at former President Trump over the years. Over the months and years, but yet here we are. You think that trump is a better choice for president . Well, theres no doubt about that. I mean, elections are about choices. You go into the ballot booth you dont have debate with anyone. Fill in this box or that box and thats where it goes. Yeah. Binary. A lot of folks that clearly dont like biden, wish a better choice but probably hold their nose and vote for him. Same for trump. Dont like a lot of what hes done in terms of his approach and all of that sort of thing, but they want change. I think thats what this election is about. Can trump connect with voters especially a night like tonight and connect with their anxieties, if you will. Look, if you want a change, want to feel better about your Economic Situation youve got to actually come out to vote in november and kind of be a part of that action. I think hes got a huge opportunity to do. Just say, hey, inflations bad. Right . Got to bring solutions. Right . Talk about controlling spending, releasing some energy to get the energy costs down. Talk about a free market and health care. Bring some type of solution here that people will understand very simply. People will understand and if biden sticks to the same talking points of everythings fine. The economys great. Clearly that hasnt worked for him for the first three years. If he sticks with that message tonight, hes in real trouble. People will get frustrated quickly. And, you know, people need to grow up, obviously, and realize. A lot of people point fingers at you say youre a sellout. Democrats know full well President Biden is probably past the point of the toughest job in the world four, five years from now. Probably not what most democrats would pick. Theyre behind him 100 because they have to be. You need to as a republican, it shouldnt shock anyone that youre behind the partys candidate. But i still need to ask you, governor. You had a lot of character issue problems with President Trump. Do those still exist and do the ive had people tell me, look. Policy is one thing. But the countrys going to survive bad policies. Might not survive a dictator or whatever, you know, heard all the rhetoric from the other side. Yes. Look. Ill say this. Every criticism ever laid at donald trump i stick behind it 100 . I do, but end of the day what you have there is folks judging other folks priorities. Right . For some families, inflation is a priority, immigrations a priority, how they deal with schools is a priority. For some families january 6th was a disqualifier. I dont judge anybody for that. Dont agree with it but i dont judge anybody for that. Everyone has to stop judging the others priorities. Families going through anxiety. Trumps on trial. Shouldnt elect him. Nobody staying awake worries about the trials of donald trump but they are staying awake worrying how to pay their rent and groceries. You have to respect that and understand that. Thats why trump is doing so well. Because when youre gaslighted by the actual president telling you your economic worries, all that Credit Card Debt you have isnt real a big deal and should be fine with it . That gets people really, shows a disconnection and gets people really ticked off no empathy or sympathy from those that affected the problem. Thats where donald trump has an opportunity tonight to connect on these issues. I think he should say similar to, look i think fed is largely responsible for this inflation problem, by the way. Janet yellen an absolute fool and if trump went out said get rid of the people that were in part, part of this problem. Right . Going to drive change. Not just going to talk about a problem, but actually bring an answer. The other thing i want ta harp on a little bit is trump has an amazing opportunity to harp on the International Issues tonight. Right . Simply say there wasnt chaos in the world when ai was president. A World Leaders look where we are today. Keep the message simple, make sure that biden who we all know a guy thats going to be up past his bedtime, if that guy kind of gets under trumps skin it will show weakness. Trump cant let biden get to him. Probably take a little bit of his frustration out on the moderators, i imagine. I imagine a few mic cutoffs tonight. That might be kind of interesting, but he cant show hes getting rattled by a guy he thinks is too old for the job. Right. We mentioned that, governor. Ill mention v. P. For a second. If is part of the calculus. Vice president harris is less popular than President Biden. Which is, getting down there, when you get to that level of popularity, and every democrat that is unequivocally backing the president knows that theres a chance, maybe, that, everybodys different at 81. Born, buffett at 95 and others in their 70s shouldnt be president. Right. We know shes waiting in the wings. Who do you think trump should pick . Well, im like former senator manchin. Partial to governors. Theyre managers. Do the job 24 7. Obviously doug great a great friend, great governor. Tim scott and rubio also in the mix. I dont think it matters a whole lot. I know that i dont mean to give no. I dont think its going to matter. People are voting for trump or biden. Look at who the Vice President is but i dont think its going to sway the vote. Two very polarizing characters. They vote for, ones a current president. Ones a former president. Who hair really voting for and rare a Vice President swings votes. So i think interesting and i hope he picks somebody solid, as you mentioned, pretty much anybody in america will be more popular than Kamala Harris. Right there hes guaranteed a win in terms of the popularity contest. Somebody effective and understands that America Needs action. Needs management. Right . Words matter. Not just this policy fluff stuff you see in washington, d. C. , real management to be a part of the team and get things back on track. All right. Its great to have you on, governor sununu. A lot of times i get a little, i think youd be good. I do. Youre young. Maybe well see that in the future. Theres a new breetdd of politicians coming along some day. Andrew, run this by you thanks, governor yesterday in the journal doug sold his company to microsoft and worked with steve bannon and the ja journal some op said said he got along with steve bannon. Somehow saying that that makes him hard to do . I like him. Dont you . I dont know if thats a singular a governor and run as good state. A lot more coming up right here from as aspen. Powering the a. I. Boom and so much more were going to talk about. Youre watching squawk box cnbc. Moving forward with nodepositive Breast Cancer. My fear of recurrence couldve held me back. But im staying focused. And doing more to prevent recurrence. Verzenio is specifically for hrpositive, her2negative, nodepositive early Breast Cancer with a high chance of returning, as determined by your doctor when added to hormone therapy. Verzenio reduces the risk of recurrence versus hormone therapy alone. Diarrhea is common, may be severe, or cause dehydration or infection. At the first sign, call your doctor, start an antidiarrheal, and drink fluids. Before taking verzenio, tell your doctor about any fever, chills, or other signs of infection. Verzenio may cause low white blood cell counts, which may cause serious infection that can lead to death. 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Thats the value of ownership. Welcome back to squawk box. Were here at the aspen idea festival. Nearly three months ago ge vernova completed its spin off from ge. Joining us now is the ceo, scott strazik. Thanks for being here. Thanks for having me. Before we get into whats going on in energy, just being a ceo of a Public Company like this now . Its fun. This is a company that matters to the word. Were decarbonizing the world every day. I see clear opportunities for us. Were having fun. A. I. , a. I. , a. I. Is happening wherever we go at the conference. One of the underlying issues is energy, how much energy is being used. I spoke to the ceo of microsoft a. I. , he didnt think it was a problem. We had enough energy and it was going to be okay. Do you think it will be . I think we can meet the growing demand. Theres a lot of load growth thats coming. A. I. , evs, u. S. Manufacturing growth, the reserve margins in the u. S. Are coming down. We have to invest a lot more into the electrical power system. We have the ability to do that, the technologies to do it. With these Technology Companies and their Balance Sheet and operating history, we can grow into this electricity demand. Where do you think its going to come from in terms of clean energy . Its all of the above technology. With the amount of power needed in this decade, gas is important. Well decarbonize that gas with hydrogen and carbon capture. Wind is going to grow. Well move nuclear to the left. You think it will be . No question it will be. In canada thats canada, not here. Thats in canada. Thats the first one. In the u. S. This will be an important part of the equation. Tennessee Valley Authority will be our customer launch in the u. S. Were working with them. Big concerns over wind, especially offshore wind and whether thats a profitable business and frankly well have debates tonight because theres a political question given the positions of President Biden and former President Trump on wind energy. You bet. When you think about wind, it generates about 7 of the worlds electricity. Most projections think it needs to be two to three times that to reach our objectives. Wind is an important part of the equation. That said, the industry has gone through a difficult chapter. I see clear pathways to success. The storming and some of the scary headlines you see in the news today in offshore wind, projects getting canceled, customers losing money, thats going to lead to a reset in the industry. What has to happen . The losses are in the billions. Yes. Starts with price. The reality when you think about offshore wind prices have to be analogous to building a nuclear plant. How do you get those prices there without subsidies . At the end of the day there are incentives to help. Do those go away based on the election . No. At the end of the day theres Real Infrastructure investments that will be required to decarbonize the world. Theres going to be incentives in many parts of the world to support these industries. Everybody is talking about the debate tonight. Everyone is talking about the role of ceos in talking about politics and policy. Yes. What do you think about that today . I think the electrical power system, governments matter. Policy definitely matters. We built this electrical power system over 100 years ago. We need to transform it in the next 20. I spend time in d. C. Do you say in this election theres a president that would be better for your company than another . When we have these conversations and we talk about the investments required, especially in the infrastructure for electrical power, really goes back to jobs, innovation, energy resilience, Energy Security and national security. The reality is the investments required for the electrical power system, both parties support those investments. Were focussed on serving both parties. Scott, want to thank you. When we come back, a final check on the market as we count down to the opening bell on wall street. Youre watching squawk box in aspen, colorado. At least, not the way it could work. Your people are buried in busy work. And you might be thinking. Can ai make it all work . It can. On the servicenow platform, ai transforms your entire business. Because when your people work better, everything works better. So, lets get to work. Idris elba works here . Mmhello. Im ethereum. Nice. And im big finance. You look really tired. Just calling it a day. But its 4 p. M. Yeah, and ive been working nonstop since 9 30 this morning, so. 9 30. You dont say . Yep. Youd want a little shuteye too if youd been moving billions around the world. Well, actually, i do. You know, stablecoins, nfts, loans. People can access me 24 7. What . But look, everyones different. You should get your rest. Youll get after it tomorrow. Tomorrows saturday. [ethereum] monday. Youll get after it again on monday. Before you use ai to transform business, accelerate growth, predict trends, you need to begin with trust. Introducing watsonx governance. Helping you govern any ai, as data, models, and policies change, so you can scale it responsibly. Lets create ai that begins with trust, with watsonx governance. Ibm. Lets create. Its time to get away and cash in at cache creek casino resort. With watsonx governance. To rock and to roll. To go all out or go all in with four stars and rising stars. Northern californias premier casino resort is the Perfect Place to do as much. Or as little as you want. Make your getaway now and cache in at cache creek casino resort. Checking walgreens one more time. 20 . The ceo saying a plan to finalize the number of store closures are in motion. He said, were at a point where the current pharmacy model is not sustainable. Are you back here tomorrow . Ill see you tomorrow post debate. I asked breen chessky, hes staying at an airbnb in aspen. Youre in studio tomorrow . No. Ill see you from here. Well have all the reaction. Thats right. Im losing it too. My names joe. Join us tomorrow. Squawk on the street is next. Good thursday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer. Futures are getting challenged