Investments in three sectors, semiconductors, quantum computing and Artificial Intelligence the order will prohibit investments in some forms of those technologies and require americans to disclose investments to u. S. Governments in some cases. And you know the one thats not necessarily going to be included which tiktok. Thats your thing. Its not been my thing. Its been the National Security thing. Right. For so long. But no action taken yet bipartisan cause, problem. It should be. Im not sure it should be. Its surprising given all this effort in this regard and why, for example, under the ai rubric, for example, it wouldnt be included. Think of all the data the Chinese Government has access to. And thats what people say. It has all how many lazy girl videos Andrew Ross Sorkin watches per day. I have yet to be convinced by the way the Chinese Government is seeing all this tiktok in terms of the way theyre trying to build this thing in a separate way but thats a separate story. The concern is that it has access in theory, algorithm and can push certain narratives on to the american people. But owned in part by like every private equity firm in new york city. Right meantime, disneys espn getting into sports gambling is a huge story the company signed a long term exclusive agreement with penn entertainment, licensing its brand for Sports Betting penn will have tenyear rights to use espn bet name in the u. S. Penn will rebrand its bar stool sports book with the espn name starting this fall axios reporting that the deal wont prohibit espn from selling ad space to rival digital sports books like draftkings or fanduel. Penn also said its selling all of its bar stool sports subsidiary to dave who founded the brand. They underestimated how tough it would be to operate in a regulated world and admitted that sports book was denied licenses because of him personally penn paid 551 million to buy barstool the sell back now includes no up front cash but penn will have the right to 50 of Gross Proceeds in the event that he sells or monetizes bar stool he also agreed to a noncompete. So, what do you think of all of this well, disney on so many front. The disney side. Theres the portnoy piece. Earnings tonight, the disney side of it is really interesting because it really underscores, i think, disneys need to entertain all ways of really monetizing that espn brand it already acquired a stake in draftkings so its acquisition of fox entertainment assets in i forget when, 2019, was it so this is another step towards that it had always been considered taboo for disney to be in betting because of the risk to the brand, the family image brand. But they got to do this. It makes a lot of sense. Clearly by the way well go back to the portnoy part in a minute they had to get rid of bar stool to make a deal like this. Theres no way that disney could be associated in any way, shape or form with david portnoy. And thats an interesting sort of component part of the story. Definitely. Look, the big story today hasnt happened yet. It will be in the call the disney call today is all going to be about does bob iger really articulate a clearer message than what he said to david faber, which on our air, which raised all sorts of questions and has basically put everything out there. Really put everything out there. Really changed the narrative around disney. It created how many news cycles about whats going to happen to the linear channels. All the folks at places like abc will be sitting there listening, trying to figure out are they core or not core to the business as he referenced last time whats going to happen to some of these other pieces . What does it mean to have other partners i dont believe it when he said partnerships for espn that he was necessarily talking about this this is one sort of smaller piece. Seems like a small piece. The question is, is there an nba deal or is there a deal with one of the leagues or many of the leagues . Is there a deal with an amazon i still think that amazontype of deal where they become a partner in some kind of gtc kind of property. But thats going to be the whole game. That would be good. But i think the bigger questions are around hulu, it is around sort of these assets that hulu is on a Straight Path to being sold or i mean, our Parent Company is going to sell its stake. I dont think thats up for grabs at this point. I think how much how much they pay they dont have Balance Sheet that would allow them to pay a lot of money they got a ton of debt on their Balance Sheet. Totally but its a legal situation at this point. Yeah. Arbitrator will decide or someone will decide what the value is and then its going then they have to pay, i think. But in terms of the assets, like abc that you mentioned, what role does that have long term and also hulu is an interesting piece because a lot of those properties that he said may not be core end up on this so then the question are there studios or channels themselves right. That get sold. And who buys them we talked to rich greenfield not a lot of folks who want to double down on this. Media folks want to be leveraged. They dont want to leverage up and buy another asset, let alone an asset that bob iger cant figure out what to do with. Maybe thats why private equity comes in. Thats in a direct tpg with directv, thats a model of sorts of a declining asset that you run for cash and youre not going to capture the multiple on it but youll capture the cash on it. Yeah. All Big Questions for dizny tonight. Meantime, update on a story we told you yesterday, softbank is planning ipo for chip company arm on the nasdaq. Nikkei news service says apple, samsung, nvidia signed to invest in arm reuters is reporting that amazon is also in talk to join as Cornerstone InvestorAmazon Web Services makes own processing chip using arms design this would be the biggest ipo since alibaba. Talking about ipos that havent really worked. Talk about this . It was a spac. It was a spac but i remember we covered it i interviewed adam newman. Well talk about wework now. The shared work Space Company wework saying there is substantial doubt now about its ability to continue operating. The company citing continued losses, cancelled memberships to its office spaces. Weworks market cap tumbled below 400 million from a high valuation of more than 47 billion back in 2019 im not sure the 47 billion valuation is ever real private market valuation in sort of house day when nobody really understood what was going on in the world. Rates were 0 . Right the question was always whether the model on to itself made any sense, which is if youre going to make longterm they were leasing property from other folks on the long term and then locking you in on the short term could you ever make the math of that work . Plus all the debt that had gotten put on top of it. Yeah. And sounds like theyre struggling what was so strange this was such a pandemic situation, this goes back to sort of what were talking about eli lilly with pfizer yesterday there was a period of time where it all looked like wework might have a real, real shot because big corporations in this hybrid world were saying, you know what, actually, employees, you may not have to come back to our office were actually going to spend even more money than not just having our own office. Well buy you a subscription netflix style to this thing called wework and well go there and have these hubs and everything will go around. I still think its a great product. I dont know if the model works. Yeah. On paper it seems like a great idea when they brought in the quote unquote grownup to sort of turn it around and lift it out of its pandemic woes, that was seen as a huge oh, thank goodness but then he quit yep. That was, huh they still dont have any ceo. Theyre still looking. He quit, what, 2021. So its been a while. And of course the big loser, you just talked about the company that owns arm, softbank. Yeah. The og, the og behind wework. So nonetheless another story were watching this morning is lyft the shares are lower take a look right now. Shares trailing up about 8 . Ride hailing service reported adjusted earnings 16 cents per share, loss of penny per share revenue grew 3 to just over 1 billion dollars. Laying off 25 of its staff to lower prices in market share from rival uber. Those cost cuts took a toll on revenue per ride metric. Uber stock has, of course, we talked about vastly, outperformed lift to date. Having said that, they have a new ceo in lyft who is much more aggressive about pricing wanting to be more competitive the fact they want to be competitive is one of the things that weighed to the degree theres been any weight at all on ubers price because we may get back to one of these days people are trying to arbitrage the prices from their app. That has always been if youre a shareholder in these companies, you didnt want them to compete on price. You do that, dont you . I feel like you do. Oh my good,nness, i do. I arbitrage between lyft, uber and yellow taxi cab. Okay. And i will often even order ill order the car, if you will, on the app and im willing to accept the 5 whatever cancellation fee. Because its so great because on taking the taxi these days is often times so great. Even when you add in the 5. Even if you lose the 5 absolutely but the more we talk about this on the air, the bigger problem it is for me when i get into the back of the vehicle because we have actually a lot of uber and lyft drivers who happen to watch squawk box. I have gotten into too many do you have a threestar rating because of this. I got into the back of too many cars that said, did you arbitrage this today we have a conversation about bitcoin and other things my rating isnt as high as i would like it to be. Because of i dont think its because of that ive been told two things. You want to keep your rating high, if youre going to use the telephone, tell the driver before youre going to use the telephone. Oh, im going to use the telephone now. Oh, okay. Its a thing. And the other is because we live in buildings in new york city. Right. Dont order the car until youre downstairs waiting. I never keep uber waiting. Dont ever leave them waiting. The waiting is a rating killer maybe be the arbitrage, too. Yeah. You can actually go on to uber now and see how many times youve gotten a 5 star, 4 star, are they they wont tell you which drive but the actual. Well do this during the break. As many of our viewers may go off and do that, too exactly. Go into security settings, privacy, Something Like that and fool around in there. Coming up, well talk strategy ahead of todays opening bell futures pointing to a higher open looking to be up by 12. 5 nasdaq is down 54. Later brian beast will join us here on set. Youre watching squawk box on cnbc wake up, achievers. Youre making the most of every hour of your life. Except the hours that youre sleeping. So why do we leave so much Untapped Potential on the table . This is a next level bed, for a next level you. My circadian rhythm is kicking your circadian rhythms butt its not a competition. I know, but im still winning so, it is a competition. Save 50 on the sleep Number Limited Edition smart bed. Plus, 36month financing on select smart beds. Shop now only at sleep number. On todays squawk planner, disney is set to report after the closing bell today among the other highlights, well hear from roblox before the opening bet. A fundraising event for republican president ial candidate senator tim scott scheduled for today in the hamptons its being cohosted by gary cone and billionaire investor stanley drunkenmiller. Joining us is chairman and ceo terry firestone for more on these markets. We saw an interesting day yesterday followed by today. Looks like a higher open what did you make of yesterdays action we saw particular weakness in sort of the higher multiple sectors, Like Software and semiconductors hi, melissa yeah, i think that we really needed to have that pause. We had such a strong run in the markets. By the end of last month, it was up 19 weve had enormous strength from software, from Consumer Discretionary stocks, from the tech sector and the Communications Companies so theyve led all the way and seeing that earnings were decent, the market went up through them, now with a couple of, you know, bad pieces of news that downgrade yesterday and on that u. S. Government, i think it makes sense to have a pause, a reset and then we look to see whether Earnings Growth can start to accelerate into the second half of this quarter and into next year because we need that because multiples are fairly high. Are you op mtimistic about te second half of the year . It seems like theres been a real change on sentiment on the street in general when it comes to whether or not you join this rally . It seems like more people are embracing the narrative that the economy will be okay and that this rally is here we have a lot of strategists on the street bumping up their s p price targets to year end. Most strategies were negative going into the year. Majority of the banks were all calling for a recession and expecting there to be very, very weak quarters this year. There have been the Second Quarter was down s p earnings were down so far 4 to 6 . Now theyre backing away from that on the other hand, the market has moved higher Interest Rates are probably piquing here inflation has come down from 9 to 3 or 4 depending what number you use if there isnt going to be a recession, then their either is going to be better earnings Going Forward or were going to be stuck in this malaise and we heard some optimism from companies. On the other hand, the stock just moved higher. Were in this Holding Period right now where multiples are high apple got to mid 30s multiple. And investors said, you know, maybe this is a little too high right now. You look at tech names like google, amazon, meta, performance out of these stocks. Theres some profit taking going on so we see theres potential and lots of names. Remember the rest of the market is up much less than the s p if you look at most of the sectors, theyre up mid to low Single Digits. While Consumer Discretionary technology and consumer Communications Companies are up around 40 year to date. So, i think there is potential but, you know, we have to just i would say regroup and look to see whether it continues are you in a position now, karen, where youre looking for things to buy in this market sounds like you think its increasingly harder to find value in this market or are you looking to trim positions here knowing that, you know, were sort of in uncertain territory at this juncture were always doing some of that thats portfolio management. There are names Like Charter Communications which really has a been a poor stock this year. Sold for multiples 11 times next year it had a little negative or a lot of negative Investor Sentiment this year because some of their Capital Investments but we believe in that its starting to act better and reasonable price holding, thats a stock thats been a strong stock but we still see an awful lot of travel in companys plans. Youre seeing expansion of their market some of the geographies that were weaker are really showing great strength you hear from the airlines and still, not an expensive stock and multiple bases you know, a name even a name like unh thats more defensive. But its a stock that great Healthcare Company high employment and that means people have insurance and the coverage in their group is providing a lot of growth to the company. So, you know, were finding names. Its just that theres a lot of froth in some of the names in the tech sector. Karen, always great to speak with you thank you. Karen firestone. Coming up, the company formally known as twitter making changes to its advertising safety tools thats after the break. Later, whats going on in the internet, the world of the internets. Squawk box coming right back after this this is dr. Arnold t. Petsworth, hes the owner of petsworth vetworld. Business was steady, but then an influx of new fourlegged friends changed everything. Dr. Petsworth welcomed these new patients. The only problem . More appointments meant he needed more space. Thats when dr. Petsworth turned to his American Express business card, which offers flexible spending limits that adapt with his business. He used his card to furnish a new exam room, and everyone was happy. Built for dr. Petsworth business. Built for your business. Amex business. Its time to bring balance to business travel. And discover the equilibrium that works for you. At national, youre in control. Skip the counter, choose any car in the aisle. And manage your rental right from the app. So you can mix work. With leisure. Or leisure. With work. Giving you the control to find the perfect balance. Go national. Go like a pro. This thing, its making me get an ice bath again. What do you mean . These straps are mindblowing they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. And you are . Im an investor. In invesco qqq, a fund that gives me access to. Nasdaq 100 innovations like. Wearable training optimization tech. Uh, how long are you. Im done. Im okay. Welcome back to squawk box. X formally known as twitter attempting to win back advertisers with new brand safety tools partnering with ad company to appear online ads dont appear near controversial content back in july x remained 0. Steve kovach has been following the story and joins us now whats happening here . Yeah. So they partnered with a company ias, publicly traded company i didnt know this until yesterday. What they do they claim they can do is if youre an advertiser, before your ad goes on to the twitter, they can determine whether or not it will be next to socalled brand safe content. This is a move to attract advert