Of strong earnings. Airline also slashing its expected deliveries amidst boeings quality crisis. And teslas asking its shareholders to reinstate elon musks 56 billion pay package. That was back in 2018. This after, of course, Delaware Court voided that compensation earlier this year. Lets begin with the markets, set to open higher after the dow ended six straight sessions of declines. S p, nasdaq, russell did extend their daily losing streaks to three. Yesterday, as you know, the fed chair suggested that rates could remain higher for a longer period. Heres what he had to say about battling inflation. More recent data shows solid growth and continued strength in the labor market but also a lack of further progress so far this year on returning to our 2 inflation goal. The recent data have clearly not given us greater confidence, and instead, indicate that its likely to take longer than expected to achieve that confidence. That said, we think policy is well positioned to handle the risks that we face. First off, jim, welcome back. Thank you. Youre a sight for sore eyes. Thanks a lot. It was great doing a little fishing. You know what, i listened to this, and i keep saying, all right, so, we have all been saying this. Weve all been saying that he is pragmatic. Weve all been saying we have a problem with inflation. So, when he verifies it, i dont think we can say, well, this is a sea change for the fed. I think that the fed has said over and over again that you have to have inflation go down, you know, at least for he wanted several in a row, and david, i think if we act surprised, were phonies. If we think its a sea change, were phonies. Okay. Because hes hes looking at the numbers like we are. He said they have to have cooler numbers. Theyre not cooler numbers. He has to wait for cooler numbers. Do you think thats, like, anything different from what a pragmatic person would do . Im not questioning the stance, no. Why . Are others . Seemed pretty straightforward. Frankly, the market did not react. It already seemed to have been getting positioned for this likelihood, right something . Right, because what happened here, when you get verification i was watching the tape because i was ruining my vacation, and i kept thinking, well, this is the chance for the people who dont know anything to react. It turned out there were a lot more people who knew than didnt know. So, i just dont want to get into this thing i dont want to get in the horse race of the fed. Jay powell said, we got to have cooler numbers, so when we dont get cooler numbers and you have people still calling for three cuts, i mean, these are people who are saying, you know what, ive looked at the situation, and i really think that the eagles are going to win the super bowl against the chiefs. I mean, what the hell do you know . What do you know . The comment, jim, that maybe was a surprise was his forecast for yearend pce at 2. 8 . B of a is saying, the base effects in for december, for example, arent that favorable, and in their words, if we take him at his word, theres a real risk the fed may not cut until march 2025 at the earliest. Oh, geez, like we have a mind meld here. I just yellowed that, because i said, well, that may be news, but again, please tell me, other than jb hunt, who is cutting price, who is in trouble and has to let things come down. I dont see that. We have a president whos calling for a tripling of the chinese tariff, one of the few things thats happened thats come down is steel. Well, lets end that. Well talk about that in a bit. Lets come back to the Broader Market. So, your thoughts are what at this point, given we have been digesting for some time the idea that there are certainly not going to be six, let alone perhaps three, let alone perhaps any rate cuts during the course of 2024. I think we need to get to the point where people dont think there are any, and then we get some good numbers. Arent we getting close to that . No. We still have like bullard was talking about three. I had that conversation with somebody this morning that said, we might get a hike and not a cut. Im like, what . If he had not said if he had not said, were done, i think he would have hiked, based on these numbers, but where hes getting now on these numbers wait, what . You think if he had not said were done, based on where we are so if hed never said were done and just said were data dependent all along, theyd be hiking now . The numbers are worse than when he said that. You have to take that. Housing prices are the least affordable than theyve been in ages. Isnt housing one of the basic rights hes looking at . I look through these numbers, and i say theyre not nearly as bad. I think if the numbers were tabulated by, i dont know, by servicenow, by salesforce, we would look at the numbers and say, wait a second, these are not that inflationary. But, you know, when you calculate the numbers as what was on the cpi, i think that you could easily make a case that the fed should have raised one more time. I dont think thats wrong. Its just that whats happening, theyre not getting the desired theyre not getting the desired effect, and i think and the reason i say that is because if you go through Morgan Stanley and goldmansachs, the windows open. People will be able to make money. The private credit is going to be able to be good again. That just says were look out for more inflation. You even tweeted this morning, if youre looking at the banks, its about the fees in an environment where ib is ascendant. Theyre all raving about how much money theyre making off people. I couldnt believe that. As much as i love charlie scharf, that was a great quarter. But the fact is that they have all these new groups that are doing business, and thats smart, so its not like the fees are, like, you were getting you were being charged 10 for whatever, now youre being charged 15. They just have more fee business because they brought in a lot more fee people. David, we want banks to get away from net interest. Ni is a sucker game. We want fees. To your point, in the institutional business, i mean, in the Investment Banking and as well for wells fargo, there were significant fee generation yeah, charlie really i thought charlie did a great job. Bank of america, yesterday, got hit, in part, because of what you just discussed, Net Interest Income, Net Interest Margin. And usb this morning. Usb this morning. And were still, you know, jpmorgan is still dealing with the significant decline its stock had on friday, jim, which you also, i dont believe, were here for. It doesnt matter if i was here for it. It was very disturbing. It was between a barracuda and a king fish. By the way, i caught the barracuda, which is trash fish. The king, we ate. You throw the brkdarracuda b . No, there are locals who like barracuda. You give it a headache. Its not for the sport of it all. No, but lets go back to jpmorgan. Sure, jim. Sure. Since i read it in realtime. Yes. And i said, okay, so, we have really good quarter, and then jamie comes on. You know what jamies a little like dr. Strangelove. I was waiting for, no fighting in the war room. He said, look, i dont know why you would ever buy my stock, the world is coming apart, inflations raging, and i said to myself, hes issuing a sell on jpmorgan. Ill try to get him to have a good hold. I mean, honestly, if you listen to that and i happen to respect jamie. I think hes terrific, but he killed the stock. Worst reaction to earnings in 23 years. Thats a long time. Lets say he had just decided to be with me on the boat, stock would be at 190. If he had just decided to come on the fishing trip, it all would have gone so much better for you. Stock would be at 198. Peter sellers did play a lot of roles in that movie. I just want to make sure were you know, there are some moments. That movies very good. Sterling hayden, blacklisted, not really, he was fabulous too. He was, he was. Remember the fluoride coke machine . Yes, of course. Essence, yes. I do think that jamie was a downer. He was just a downer. Purity of essence. That was what it was. I was with a group of people who are very sophisticated mates, ill call them. Mates . They were mates. It was a punchup. I dont understand. Theyre sophisticated in the ways of the sea . No, when i read if their seafaring abilities . Mates . Are they pirates . No, listen, mate. Im now into that too. It was very hard to ignore his burstin where he basically threw cold water on a stock called jpmorgan. I see. Do you disagree with that . No. It has been an interesting earnings season for the big banks, jim. We had jpmorgan, obviously, to your point, with some of that negative commentary to a certain extent from jamie dimon. Yesterdays earnings from bank of america, not well received. But then goldmansachs and Morgan Stanley goldmansachs, by the way, again, we dont need to go over stuff weve already discussed, but well keep an eye on the financials. Just because youre not here, doesnt mean it didnt happen. The world ended because im not here, and i restarted the world. It is your world, and were just living in it. Thanks for that. Youre welcome. David solomon delivered the quarter weve wanted from goldman for a long time. It was a great feebased quarter. Morgan stanley, ted pick, he came in hot. You either felt that james gorman had just tanked it so that he could come in hot, or he could say, listen, when hes ebullient about m a, and about ipos, i mean, david, thats your world. It is. Welcome to it. Im back no your world now. The m a world, i would not share that ebullience. Theres a level of business that will continue to get done. As we get closer to the election, i think, certainly, from the perspective of companies considering a large transformative deal, which we have seen very few, of course, harder and harder to get done. So, well see. Can i have a little comedy hour . Do you mind . Can we sneak comedy in . And i aint talk comity. The ftc apparently wants to block tapestry buying capri. Thats stupid. Thats okay. You can use the word. Yes. It will not i mean, i guess theyre looking at the 0. 7 increase in apparel over the course of the last year. But this is being blocked, i dont know, because of jimmy choo . Is jimmy choo the issue here . Or is it Michael Kohrs . Im not certain. Im aware of what youre discussing, of course, if that it has been another concern overall in the market in terms of the ftc, again, preparing to block that. But i we have to protect the price what, the jimmy choo prices are going to go up . Is that what were worried about now in america . That toe cleavage takes precedent over Everything Else . There we go. They did get thats the ftc. They did get eu antitrust approval. Because its really critical. I mean, this is its comical. Im sorry. I didnt go to law school to youre away. You just come back, and youve still got it youre all up in the bundle about the ftc. My major was antitrust, okay . Kind of major really . Soft major, yes. But i was in law school . I was friendly with all the professors in antitrust. If they ever felt that the issue was, weve got to stop the price increase in shoes that give you great toe cleavage, we were talking mostly about chevron. I mean, this is lets just say, its comical. You know what this was when i saw it . I figured it was episode 11 of curb. We should point out on that deal, its a 57 allcash deal. How great is it for tapestry . As you might expect. Tapestry is up 25 . Next quarter is bad. But david, all i can tell you is that Michael Kohrs must be preserved. If you had gone into law, you would have been in antitrust, do you think . Oh, absolutely, thats my specialty, because i made a killing on the so cal deal. Professor reeder told me, that deal will pass. I took everything i had and i bought calls. It was legal. Bingo. Paid for the last year of law school. Well done. Thats how it all began. How it all started, man. He said, i think the deal passes. He was the professor, best guy in antitrust. Bless his soul. I think he would be shocked that they brought this case. Yeah. When we come back, a lot more on whats driving the morning. Bestperforming stock on the s p. Well talk about that. Some of these misses in travelers, asml, jb hunt, got some price target cuts on tesla and other calls on urban, ge, e. L. F. And danaher. Ring. Think about it. Boring is the unsung catalyst for bold. 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This is what Ceo Scott Kirby had to stay. Our challenges in the industry, the capacity limitations, it is remarkable. We started this year with a wave of aircraft deliveries. We knew we wouldnt get all of those. We planned for 101. Were now planning for 61. The biggest impact on that is our cost structure. We hired enough employees to fly 101 airplanes and were going to be carrying that as we go through the summer. It will catch up. Thats interesting. Theyre going to try to make up for some of that by leasing some used airbuses, jim. This continues the fiasco of boeing. He was very calm about it. I expected that he would be more agitated, but he did a great job. Terrific quarter. We always wonder why everything every plane is an extremely full flight, and david, one of the reasons why every plane is an extremely full flight is because boeing is not delivering the planes that they thought. When was the last time youve flown where there was a seat . Its rare, it seems, that there are many empty seats on a plane. Thats been the case for some period of time since the end of the pandemic, certainly, jim. But you really believe that it that its simply capacity constrain for the industry to the point where theyre missing out on potential revenue opportunity . Look, their numbers the past year revenue seat models are excellent, but i think the fact is that you would like to fly lets say you had a route structure to San Francisco. Well, i think you could easily do four more flights, and theyd all be full since nobody can get on them anyway. And i think that whats happening is that they would just insert all the, you know, on any of the runs that right now we all know are extremely profitable because we look at the bill and we cant believe it. Right. Right. And there would be more competition. I mean, now, you have ftc worried about something thats impossible. The two things that have happened here is how theseat prices go up so much, id like to look at that. Right . I mean, dont you think thats yeah. Do you have and then insurance. Insurance. Do you have an entrant in the boeing ceo sweepstakes at all . Larry culp take larry culp off. David is working on a very big merger. Take him off. Take judy marx off. She would be good. Ill get that time 100 event. Are you going . Hang out with mahomes and who else . Ma homey. Yeah. Hes hes all over me. What . Im going, okay . Hey, like, wow. I didnt say anything. Its a great event. Yeah. Its a its not the first time. Well talk more about some of the Corporate Leaders that are on the list this year. Well get cramers mad dash, countdown to the opening bell, one more look at futures. This has been the pattern here where the premarket starts strong. Well see if it holds as wree trying to snap this threeday loss. Dont go away. Old school hard work meets bold new thinking. laughter at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. Old school grit. New world ideas. Morgan stanley. All right, lets get to a mad dash. Weve got an opening bell about six or so minutes from now. We havent talked lilly quite that much. We havent. We got to talk about it today, because of the latest potential indication for a drug that seemingly can do anything. This is well, it does i mean, if youre overweight, theres a lot of things that can happen. This is an overweight study for sleep apnea. These are people, nondiabetics, obese patients. Get this, david. The placebo, i think you might have been on the placebo. They did 4. 8 . But eli lilly did this is events per hour 27. 4 , and some of these numbers, i think the Insurance Companies have to take notice. Production for the baseline in line with 50 to 60 drop. In events of no, that is actually sleep apnea, in line with expectations, to be able to stop it. To stop sleep apnea. Yeah. And i got to tell you. What this is the reason why i bring it up is not sleep apnea, necessarily. Its the growing drum beat to the Insurance Companies that you better approve this. When you have a demonstrated, significant benefit thank you, la rink in improving severity of obstructive sleep apnea, also known as osa, then you, you know, this is really or add it to the list, right . Obviously, the reduction significant reduction in weight is the key, but its also potentially positive for preventing future heart attacks and or even stroke, i think. Yes, yes, stroke. You talked about what it may mean for certain addictions as well. They dont want that which is not yet on the they dont want to do it because they think theres other reasons why people are so, they do fatty liver, and fatty liver, its been remarkable. Thats a death sentence, okay . But you know what . Its been one of the great moves in the stock in a long time. There it is. Look at that. What . So its not more to go . Yes, as each trial comes in. I cant do anything. Fatty liver is millions of people. Millions. And the mets have won how many straight . The mets have won 9 of the last 12. Now youre a happy guy. We got to go. We t goto go. Well be right back. Announcer the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. Time is out with its annual list of the 100 most influential people in the world. This years Business Leaders include nadella, mark cuban, ellison, and nvidias jensen huang. The guest contributor writing about him says, while most of the industry focused on making mobile devices, he recognized that delivering the most powerful chips would unlock the