From daly and kashkari. Plus, exxonmobil agrees to buy pioneer. Its about a 60 billion all stock deal. We will, of course, give you the latest. Its another big test for the ipo market this morning. Shoe brand birkenstock making its public debut thats how they pronounce it right here at the nyse. Ceo is going to join us here at post nine in the next hour. Lets start with that massive deal in the energy sector. Exxonmobil agrees to buy pioneer. The price tag, 253 a share. Its all exxon stock, so in this case, when exxon moves down, the overall value of the deal is impacted. Therefore, it is no longer 253 but not that far off from that price. They are talking about significant synergies, as much as 2 billion total annual average value over the next decade. 2. 3234 exxonmobil shares, its an 18 premium. Little background that i got, jim, and obviously want to get your take. You know this company, pioneer, so well. My understanding is having spoken to people familiar with the old situation, as we like to say, theyve been talking on and off for two years, but things only sort of got more serious of late. We talked about the spring and what may or may not have happened there, but really, its more recent than that. And it does seem to be tied, at this time, as to why it was able to get to the finish line because mr. Sheffield is having succession, stepping down at the end of the year. Apparently as well there was a belief that his people, so to speak, are going to be treated well. That synergy number is going to result, potential ply, in peopl losing jobs, and theres a feeling it will be equally shared. Thats something i was told was important to him. But the premium itself, not that large, jim, and i know you were in the camp that thought they would get a higher number, and youre not alone in that. No. As we had reported on monday, most likely would be all stock and it is, and exxon showed price discipline. Yeah. Okay, so, its a huge position for my travel trust, oewned it for some time. We like mr. Sheffield. When mr. Julie was appointed to be ceo designate, so to speak, at the end of the year, i thought for sure this would be the long run that i wanted for pioneer, because i think it had the lowest finding costs since mr. Sheffield built the best company in the permian. I have tremendous regard for exxon. I will sell every share of pioneer because i have tremendous regard for my travel trusts performance and this is not what i wanted. It is an allstock deal. In other words, you are going to be a beneficiary if, in fact, they deliver on those synergies, if they do bring the price down to as little as 35 a barrel in terms of production cost over time, right . So, would you not want to just roll into it . Its got more growth. I dont want to deal with this overhang. One of the reasons we bought pioneer is because mr. Sheffield said to us that we will own the largest dividendproducing stock in the s p 500. We will not after that. I think the world of mr. Sheffield. Its a big win for me. So, kaching, kaching. Kaching, kaching. No assault on anything. Knowing the company as you do, what are your thoughts in terms of the deal that exxon is getting here . Significantly in the permian and mid midland basin, really the saudi arabia of our country. Thats your world. Theres a time value of money. Theres whether the ftc is people are thinking six months, maybe a little bit more. There is not a belief that this is going to get a serious antitrust review. Perhaps it does get a second request, but as the gentleman said earlier on squawk box, theyre 15 of oil coming out of permian, less than 8 total for the country. You would anticipate that would not necessarily bring significant antitrust scrutiny. Maybe scrutiny but not and you know, exxonmobil is a pretty Important Company and if they can continue to bring the price down, that conceivably is something that would be good for consumers. I think the world of exxon. I think the danbury deal is good. You know why we bought the stock . Let me be very clear about this. Because of mr. Sheffield. We wont have mr. Sheffield. Hell be on the board. Look, sheffields fantastic. I want sheffield. Probably isnt someone whos good as sheffield, but i have to do that because my job is to find a stock. Im not an arb. I get it. Thats perfectly normal thing to sell out on the deal itself. Taking the gain. Really thrilled. I mean, exxon is quite happy they were able to hold it to an 18 premium below a 20 , showing price discipline, all stock, but again, they can also argue the appointed ceo designate when the stock was at 22, i was hoping for more than 241 this morning. I think it probably trades at 238. Thats a hell of a cry from they do also take their transition targets to Carbon Neutral in the permian at pxd down to 2,035. Again, sheffield was brilliant at this. He cared tremendously. Thats why Matt Gallagher was appointed to the board. Exxonmobil, as we know, having done our documentary, is electrifying all of their operations. Now that will include pxd in the permian and the midland. So in the permian. Coterra is a better buy. But no, look, its time to move on if you own the stock, and find the next one. Why not just own exxon . Darren woods at this point, i mean, three seats to a firm that doesnt even exist anymore. Well, because coterra could be taken over by chevron. I want to find a company that is worth a lot that gives you a good dividend. I wanted that dividend from pioneer. It was fantastic. Because it was not just it was 75 of whatever. Hey, listen, lets say tomorrow, walgreens got a bid from amazon. Well, then, im gone. So, walgreens would be gone too. They would be happy to take a bid. That stock is nothing but pain. I personally i think mr. Wentworth is so fabulous that i was going to tell you that i think you buy walgreens, and i have been negative on the stock. I mean, i just commented about the fact they closed the store that i did a giant piece on with the ceo, my pharmacy, whatever, and its time to get behind mr. Wentworth. Interesting pick. A veteran of cigna, a veteran of express scripps. Hes what we call money. Hes fantastic. Now, they report tomorrow i dont think they do a good number. Thats ridiculous. Hes from the health care side. Its only about 6 billion versus the 100 billion pharmacy but how about if you closed all the places where stealing is rife because theres under a thousand dollars you can steal . Well, then, i think youd have a really good company. I think it could be a really Good Health Care company, so im very positive on walgreens. Im not negative on pioneer. I just got to move on. I was hoping to get a higher price, but thats okay. Everybody wants a higher price. Are you saying youre specifically looking for m a in oil or beyond energy . I think coterra i think jordans doing a fantastic job, but the fact that the stocks at 28 is absurd. Theyve got the next best permian and the best nat gas so i in ugly w but its a w. To your point, carl, weve seen two large deals now. Weve got the cisco transaction. Which was sort of the inverse conversation about sticking around versus taking your winnings and leaving. There, that answer didnt work for me, this is good for everybody when youre the splunk ceo and youre talking about how its wonderful for everyone even though youre selling for cash. If you are pioneer and you get that question why, and why this price, you can say, we believe in the combination in a real way. Its a very different answer. I want to find the one that has the optionality. I want the earnings to be up or i want the takeover. Thats why its coterra. Thats what i want. Thats not bad. But you know, i got to i dont know. Whats coterras i might be able to judge whether lina khan will go after this just to destroy the time value of money. She probably understands that even. Woods was asked about that and said 15 of permian production is basically not all of her writings have nothing to do with this. She says, rich people do really well. Shell say thats a misquote. I dont give a damn. She says mergers favor the rich and theyre bad for the poor. Shes kind of robinhood, but not the stock, which is awful. Bending the cost curve, as they believe they can, applying their technology to all the pioneers that that will be a benefit to consumers. So, they already have their pitch to d. C. My guess is and i think they believe that they will not get a serious opposition. Jonathan kanter would never get hes a legitimate guy and a heavyweight right now. When you voted for biden, you got conned. Lets not, like, mince words. Khans anticorporate. Shes an agency person. Every opportunity to just come back to khan. Ive missed opportunities and i regret that. Really . Really . Yes, because i wasnt rigorous. Would you like me to bring you together with her . Shes a lovely lady. Ive always been forgiving. Smart, nice. Nice person. Thats my nice person indicator. Meantime, ppi, as we said, did run a little warm today. 0. 5, we were looking for 0. 3. Core was 0. 3 looking for 0. 2. Year on year, jim, the headline is the hottest since april. Im against these people who say we dont need another hike. Give us another hike. Lets spike it. We dont want to be in a situation where a year from now we say, why didnt we do more . I dont like this number. In number is too high. Theres nothing wrong with another hike to be sure that inflations over. Daly last night saying she can absolutely imagine that the neutrals 2. 5 to 3, got some play. I thought she was smart about that. I happen to like her work. Shes a very rigorous person. Well get minutes today at 2 00 p. M. With waller and bostic. Collins tonight. Bostic has been the most outspoken, saying, were done. I thought that was very interesting. Defere jefferson was there and bostic said, were done. I dont want to be sound redundant, but its jay powells fed. And if jay powell wants another hike, then well get another hike. What jay wants, jay gets . Yes. Yes. See, now, when i think about waddle waller, i think about waller, not waddle i just think, why cant they hit him in the flat . No, its waddle. Why cant they hit waller min the flat . Are you talking about waller on the giants . Waddle on miami . I play for birkenstock, so i could be anything at this point. Im just saying, why hasnt he been hit in the flat . Im glad, carl, that we transitioned to the nfl. Well, waller the waller comments were where i am. The daly commence ts where i am and i think thats where powell is. I think he wants to see six consecutive good numbers so we better have a good cpi number tomorrow. He doesnt want to be the person whos arthur burns who just, like, i stopped tightening at the wrong time. Hes a good guy, and hes against inflation because it hurts the working person. So, lets be sure its done. Of course, the journal yesterday, nick saying that these higher yields are likely to extend the pause and the chance of, i think, of novembers 7 . I know, and he, of course, is the fed whisperer, which i am not. Im not a fed whisperer. Stock whisperer. Youre a stock whisperer and a stock shouter and a stock every possible range. Does he whisper . He does whisper when you get uneasy about something. He does get quiet. I am just where it was when we got the last bad cpi number. Like, oh, that was a bummer. And by the way, in september, who went out with higher for longer . Not me. I just think you have to be prepared for another hike. Its okay. All right, but the tenyear has backed off and 4. 8 . This is amazing. Below 4. 6 . There are people who say, maybe i missed the opportunity of a lifetime to buy the 20year. I know. But how about all that financing . Remember when those people were coming out and saying, were all dead, financing is horrible, medicare entitlements, whered they go . Theyre still around. They only come in on days when the Interest Rates are really bad. Theyre still around. There is still the supply story, supplydemand story. Supply story is real, but they financed it at four years. I begged them to finance it 50 or 30. I do. We remember it well. They all laughed at me. They all laughed at you. You begged steve mnuchin. I remember you talking about it all the time. I just begged him. Online, offline, all you said was 50year. There was a uk treasury official yesterday who said, maybe we should have done a little more longterm financing when rates were lower. Would have, should have, could have, right . I mean, you know . I didnt go back to the nfl there. No, you didnt. No, i did not, because i think coach daboll is in jeopardy, and i really like him. Well take a quick break here. Take a look at the premarket. We are hanging on to gains. Yields up a little bit on the ppi print but not too much. Still below 4. 6 . Well get to some calls on Morgan Stanley today, csx, novo, ourstainand of coue lkg abt birkenstock, a big event here on the floor this morning. Dont go anywhere. i promise as an independent advisor to put the Financial Wellbeing of you and your family first. I promise to serve, not sell. I promise our relationship will be one of partnership and trust. I am a fiduciary, not just some of the time, but all of the time. Charles schwab is proud to support the independent Financial Advisors who are passionately dedicated to helping people achieve their financial goals. Visit findyourindependentadvisor. Com nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. lets get to the latest in israel this morning, entering its fifth day of conflict with hamas. Raf sanchez is live on the ground. Good morning. Good morning. We are hearing from the Gaza Health Ministry that they have now completedly run out of fuel for the strips. That may mean that pretty soon the two million residents of the gaza strip are going to be completely without electricity. This has the potential to be a major, major humanitarian disaster, to say nothing of what appears to be a looming Israeli Ground offensive against Hamas Terrorists inside of the gaza strip, but a ground offensive that may bring this war to the densely packed streets of gaza city refugee camps with civilians caught in the crossfire. As you said, carl, we are five days into this war but it feels like almost every hour we are learning new details of the full scale of the horror of the terrorist attack that sparked it. Yesterday, the Israeli Military took us into a kibbutz about half a mile from the gaza border. They showed us the hole in the fence through which these hamas militants came, and then we basically followed the path of these terrorists as they went, killing, kidnapping through this community. It was a scene unlike anything i have ever seen. There was blood all over the walls, all over the floor of these small houses inside the kibbutz. Some of these homes have been set on fire with people inside. The smell of death was absolutely overwhelming. It was home to about 700 people. It appears that a very, very significant proportion of those 700 people have lost their lives, even though its not physically a big place. It felt like almost every couple of minutes, the Israeli Military was discovering new bodies, including the bodies of children, inside of that kibbutz. So, a truly devastating scene. The death toll is shocking and we do expect to hear from the president once again. Well talk soon. Raf sanchez of nbc news in israel. Take a look at the premarket. Market obviously has a lot to process today in addition to the headlines out of israel. Watch the ipo market. Well watch the m a market, and of course, getting a little more calls ahead of what will be a busy q3 earnings seaso n. To finally lose 80 pounds and keep it off with golo is amazing. Ive been maintaining. The weight is gone and its never coming back. 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We talked a bit about walgreens, the new ceo. Exxon is not the only important stock in the dow. I happen to know Tim Wentworth, the ceo. Hes remarkable. Might have known him from cigna. Hes a nononsense guy that can generate tremendous returns from the health care side. Thats where hes from. Its only about 5 or 6 billion now, but if you close the underperforming scores, get rid of the stores that have bad shrinkage and up the health care, you will have a stock that is dirt cheap. Maybe it can do 4. Maybe they can do more. And i think people have ive not been in favor of the stock now, i mean, literally for 20 points, but this guy is the real deal, and i just salute him and think he can take you to a higher price and the stock should be bought, perhaps aggressively. They report tomorrow. Its going to be awful. Still a very large shareholder. I know, but wentworth is a guy you can say conceivably a mistake to have bought boots many years ago in the uk. Yeah, it was, but you can pivot. These acquisitions that they have b