Start. How do you start six months, andrew, in terms of the markets and the economy and what weve heard from the fed. Its like a tolstoy novel. You could do a month and it would take a half hour to go over everything we have seen you throw in a. I. And his investments around the world and you remind yourself 30 years 30 plus every year. That is almost its an amazing thing probably will never been done again. I dont know how it was done once unless you made some deal with someone who knows these things to do that well is spooky. Its scary i guess it comes from being smart. Were okay. Hes one of the smartest when it comes to these issues that will be 25 minutes of stan hes going to be in your chair you got to give your chair to someone. I would warm it up for stan. Perfect lets check the markets which well be talking about at length today u. S. Futures indicated up about 78 points. Mixed on nasdaq which is off a little so much of it has to do with a lot of what we are talking about which is treasuries and fed and the kind of signals weve gotten in recent months and whether they make sense. A lot of things to talk about. The tenyear yield since friday backed off those numbers that were a little closer to 5 we are 4. 46 twoyear note was above 5 or looked like it would stay there for a while. Now you see it is 4. 81 . The faa has opened a new investigation into boeing. This is just like the roaches you find now we are infested after the company disclosed something just flew by me. Employees may have skipped inspections of 787 dreamliners and falsified the records. That almost sounds more than negligence boeing notified the faa that it may not have completed inspections on the dreamliners in this case, related to bonding and grounding aimed at reducing electrical hazards near the aircrafts fuel tanks. The inspections were not co cond conducted, but the work marked as completed boeing said it took swift and serious corrective action with multiple teammates, it says, but did not elaborate on what that was. The faa said boeing was reinn expecting all in production and must formulate a plan to address the dreamliner fleet which is already out there. Boeing said there was no immediate safety of flight issue related to the inspections just reading that thats inexcusable. Electrical issues around the fuel tank. Make sure there is not an explosion on the plane. Electrical, fuel tank, airplanes. It sounds ominous. The good news is they caught it through a system set up where employees could report it. The good news is somebody was reporting it and somebody was saying something there was a system set up for that the idea that someone on the line would think that was something they could get away with and do . Probably more than just someone. Teammates. Members of the team which is like 012 this season. Not a winning team at the moment lets talk about winners or losers talk about whats going on with the conference the milken conference. Elon musk speaking out much of that with Michael Milken and talking about space travel and illegal immigration and free speech and falling birth rates and also talking about Artificial Intelligence. Heres what he had to say. I feel it is very important we evolve a. I. In a way that is beneficial to humanity and theres some importance pr principles here. I think you want to have a maximum truth seeking a. I. Which is very important where the a. I. Should not be taught to lie or taught to say things that are not true even if those things politically incorrect. It should say what it believes to be true musk said there is almost no a. I. Used in Space Exploration not because he is against using it, but because they have not is seen a use case for it just yet. Becky. Thoughtful comments on all of those things it gives us a lot to think about. Apple has been working on a chip designed to run a. I. Software in Data Center Servers according to the wall street journal report which says the project has been in the works for several years, but it is uncertain if or when the chip will be unveiled the components will likely run a. I. Models rather than training them where nvidia dominates. Apple expected to announce the progress on a. I. Products at the developer conference that is coming up in june. Shares of palantir are falling. 8 cents a share matching ce estimates. Gui guidance coming in below analysts estimates this a letter to shareholders, alex karp says it will continue to be transformed by software. This is vital to protect the innocent from harm im talking to alex karp later on this morning. Well have more tomorrow morning. When we come back, a survey of Young Americans painting a dismal picture of the Housing Market the millions of people stuck on the sidelines. These are younger americans and it is dire well talk about that straight ahead. A huge lineup still to come today, the cfo of disney will join us after the Company Reports later this hour. Investor Stan Druckenmiller will be here at 7 00 a. M. And later, s. E. C. Chair gary gensler will be here. Squawk box will be right back. Announcer this cnbc program is sponsored by baird. Visit bairddifference. Com. U kn . 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 cant believe you corporate types are still at it. Just stop calling each other rock stars. And using workday to put finance and h. R. On one platform. Tim, you are a rock star. Using responsible ai doesnt make you a rock star. It kinda does. You are not rock stars. clears throat okay. Most of you are not rock stars. Oooh. Data driven insights, and Large Language Models. Oh, thats so rock roll. It is, right. He gets it. Yeah. Did i read this . Did i get eggs . Where are my keys . Memory and thinking issues keep piling up . It may be due to a buildup of amyloid plaques in the brain. Visit morethannormalaging. Com a slow network is no network for business. Thats why more choose comcast business. And now, were introducing ultimate speed for business our fastest plans yet. Were up to 12 times faster than verizon, at t, and tmobile. And existing customers could even get up to triple the speeds. At no additional cost. Its ultimate speed for ultimate business. Dont miss out on our fastest speed plans yet switch to comcast business and get started for 49. 99 a month. Plus, ask how to get up to an 800 prepaid card. Call today welcome back young home buyers are negative on the availability of housing in the country at this point with 68 calling it non nonaffordable and 6 saying housing was available and affordable according to the cnbc Generation Lab poll. Joining us now is the realtor. Com chief economist. It is not surprising to hear these numbers because they were who a horrific i cannot believe how much money you need to make to afford housing in this markmarket we have been talking about the under supply of housing for the last decade. We can see prepandemic levels that housing is down 34 home prices have gone up about a similar margin 36 combined with higher Mortgage Rates higher prices mean you need to earn over 100,000 in 34 of the 50 largest metro markets we are not talking luxury homes. If you look at the top of the list, most of them in california san jose, 361,000 l. A. Is almost 300,000. San diego is almost 260,000 San Francisco is pricing out entire generations from this market i think thats true we dont see firsttime buyers because they are established with high prices if you look at what it costs to buy, over 250,000 to buy a home over renting is expensive, but not as expensive as it is to buy. Many are making the decision to rent thats why homeownership rates trail behind the typical u. S. Housing market it is challenging in these markets. It is a challenging market, but there are areas where we do see opportunities. Particularly in the midwest and inively more affordable. If you compare to four years ago, there are fewer homes on the market compared to last year, we are seeing an increase to homes on the market for sale which are up over 30 compared to a year ago. If you look at the median price point, homes in that price category are up 40 . We are seeing a bit of a turn around and improvement, but from what is still a pretty dire situation for young people you think thats where the logjam is starting to break at the entry level housing. Thats because those people who live in those homes have outgrown them and cannot put off moving up or moving out . Potentially we dont have a lot of detail who is listing the 250,000 to 300,000 homes we are seeing more in the south. That is starting to turn things around and give shoppers on the market more opportunity. That said, as long as Mortgage Rates remain high, it will be challenging for young people to navigate those more affordable options. I should note on the price per square foot basis, we are not seeing prices come down, but a shift of what is for sale. That is good news for a person looking for an entry level home. It is still relatively expensive. Fortunately, we talked about the price of housing going up. We have seen incomes go up that has been one bright spot. Over the last couple months, we have seen incomes catch up and grow faster than the cost of buying a home. A lot depends on Mortgage Rates here it mediates the buying power of hous households as incomies catch up, it gives the improvement of the affordability picture. We need to see more construction to make a break. Danielle, what if Interest Rates went up from here . That is not the expectation for conventional wisdom. If Interest Rates went up, what would the impact be here i think if Interest Rates go up, iter to buy a home that affects sellers as much as buyers we tend to see inventory pull back when Interest Rates move higher which can be more challenging for firsttime home buyers first timers are willing to engage in the market they are at the taj stage wherey are ready to become a homeowner and lock into a low Mortgage Rate it does become more challenging and looking at qualification ratios and it is hard for them to get into the market that is not my expecting ationen danielle, thank you absolutely. Coming up on the other side of the break, the ceo of hims and hers health speaking out the Earnings Call on the controversial comments on the campus protests. We have a huge lineup. The cfo of disney and Stanley Druckenmiller and gary gensler from washington, d. C. Here this morning. All of that coming up on squawk boxthprraro as e ogm lls on back after this. 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Golds portfolio of worldclass assets are creating American Growth and homegrown Strategic Metals as the us moves towards an electrified future. U. S. Gold corp. Welcome back to squawk box this morning shares of hims and hers are up a penny. Revenue beating with the subscribers rose to 1. 7 million. The Company Raised fullyear guidance a lot of folks got on the call to listen to this. The ceo addressed the comments where he praised proPalestinian Protesters and he and others were eager to hire them. Im saddened for the support for peaceful protests has been interpreted as violence. I do believe deeply in the right for people to use their voices in peaceful protest to drive change this right is critical to our democracy and must be protected. Our world today is more just because students throughout history have courageously taken to their campuses and used voices to force change in response to that question, he said he did not expect the comments to have any Material Impact on the Company Business we saw the stock fall after the comments and a flurry of comments on reddit and twitter and others with customers saying they had no interest in using the service. We will watch to see next quarter. Joe. That was like we all agree. We dont like when jewish kids cant go to school and someone might get hurt there are no classes thats what we know about the right to protest we got that. I dont know i keep seeing ads for that company i dont know what the hell that company is if you need ed, they got that. If you are bald. Not that i mpetent and bald do you know what the company does you know it well. Im not bald. I understand that what the hell is that company . Whats the hers part i think they sell a bunch of products that are somewhat similar on the other side for women. You are pretending and naive about the company. You know every other company a. I. You have all that. Total ignorance about it im feeling uncomfortable already. Im looking for a safe space seriously i watch it what do you do they talk about curing everything its weird i get up a lot at night. Do you got anything for that its crazy melatonin then i need something from p g if im totally asleep. I do need to get up, andrew. I dont know its called coffee. When we come back, disney is set to report in the next few minutes. We will bring you those numbers as they hit. A first on cnbc the interview with cfo Hugh Johnston announcer executive edge is sponsored by at t business next level moments need the next level network. Its a pillow with a speaker in it thats right craig. A team thats highly competent. Im just here for the internets. At t its superfast. Reliable. You locked us out . arrggghh ahhhh solutionoriented. [jenna screams] and most importantly. Is the internet out . Dont worry, we have at t internet backup. The next level network. I sold a pillow coming up, disney set to re report we will bring you the numbers and the first on cnbc interview with the cfo Hugh Johnston we will have Stanley Druckenmiller here at 7 00 we will talk markets and more. We will have gary gensler as well all that as squawk box rolls on switch to shopify and sell smarter at every stage of your business. Take full control of your brand with your own custom store. Scale faster with tools that let you manage every sale from every channel. And sell more with the best converting checkout on the planet. A lot more. Take your business to the next stage when you switch to shopify. Hey you, with the Small Business. Whoa. Youve got all kinds of bright ideas, that your customers need to know about. Constant contact makes it easy. With everything from managing your social posts, and events, to email and sms marketing. Constant contact delivers all the tools you need to help your business grow. Get started today at constantcontact. Com constant contact. Helping the small stand tall. Good morning we have breaking news. Earnings just out from disney with the Quarterly Results we have earnings of 1. 21 a share. 11 cents better than estimates revenue below expectations a slight miss. It marks the fourth straight revenue miss on that side for disney if you dig through the numbers, entertainment slipping 5 . Sports revenue growing with higher domestic espn revenue 8. 4 billion direct dire directtoconsumer business driven by higher ad revenue. Disney increasing 6 over the prior quarter to 117. 6 million the i which is in line with estimates. Bob iger says the companys combined streaming business is on track to achieve profitability in the 40 qFourth Quarter. That is the holy grail for disney after this, we will break all of the numbers down we hhave Hugh Johnston who will join us after the break and talk about the ecosphere which is in a major transition later in the broadcast, we have Stanley Druckenmiller at the table, thats live at 7 00 and gary gensler will join us later. That is all live from washington squawk box is coming right back after this. Announcer this cnbc program is sponsored by baird. Visit bairddifference. Com. Welcome back to squawk box. Disney out with earnings of 1. 21 per share. Better than 1. 10 than expected. We should say revenue is a slight miss. We have Hugh Johnston with us. Hugh, good morning to you. Lets walk through the numbers for those investors out there trying to understand whats happening at the firm. As i mentioned, you beat on every estimate on the profit end, but revenue did miss slightly good morning, andrew. Great to be with you guys. It was another Strong Quarter for disney we feel terrific about it. Operating income grew 17 . Eps grew 30 that was 11 cents ahead of wall street the improvement in directtoconsumer streaming that business lost 600 million in the entertainment portion made 47 million that is a couple quarters ahead. We got there in q2 overall streaming was up 12 which le