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