Nasdaq indicated up by 1. 2 for the week to date for what we have seen. Look at the treasury market. You see treasuries here with 10year treasury at 2. 3 . Wti climbing above 90 a barrel. Right now, 90. 43. Of course, we have seen big news in other places. New overnight, positive data on china recovery overnight. Retail sales raising 4. 6 in august. The Unemployment Rate ticking down by. 10 . Chinas Central Bank Cut a shortterm lending rate one day after it lowered the reserves the commercial banks need to hold against deposits. That will free up funding to lend to houses and businesses sdpbusinesses. Im happy we have this guy around. Phil lebeau. It he iis interesting, the phil. You are in detroit. I saw you talking to one of the guys earlier. This is very interesting today. Especially where we have you perched. Reporter joe, it will be interesting to see how long the strike goes. Maybe a week or two weeks or looking at something extended out over seven or eight weeks. That remains to be seen. The longer it goes, the more painful for the automakers and the economy. We talked about that. Let me give you a back drop with the strikes which have been called by the uaw. First time we are seeing strikes at all three of the detroit automakers. Ford, gm and stellantis. One in michigan, one in ohio and one in missouri. Those employ 2,700 workers now walking the picket line instead of the assembly line. We heard from them about how long they are prepared to stay off the job. Everything. My livelihood, my familys well being. Everything on the line for me. I was raised in the uaw. We deserve our raise. We deserve it. I think everybody out here does. We come to work every day and work hard and make sure quality is right. People have been underpaid for a while. Benefits have been crazy. This is something thats going to help everyone. Reporter let me clarify that. 12,700 workers now on strike for the uaw. What happens next . There will be no negotiations today. Shawn fain from the uaw said they will not have negotiations today, but will hold a rally in it downtown detroit. Assembly continues for ford, gm and stellantis. The question is when will we see more strikes . The uaw says this is different. If there is no progress made, they will call for more plants to be shutdown . Will it be final Assembly Plants or strikes at plants for engines and transmissions . They are not doing it that way this year. There is a rally in downtown detroit. You dont want to miss next hour. We will talk with gm ceo mary b barra about the strike and negotiations. Executives arefrustrated with how this has come together or not come together with the uaw. Were going to talk with mary next hour. Guys, back to you. Phil, they have the element of surprise. You dont know where they will strike next. I think that is their idea to keep them unsettled. Over the last decade or so, phil, it has become popular to talk about big business and billions of dollars that the ceo compensation. You hear ford made 25 billion or take your pick of the big three, that narrative resonates with a lot of people. Can we draw parallel to how long the hollywood strikes have lasted to this staying power of the auto workers in this case . Phil, they may dig their heels in. Reporter they may dig their heels in. Joe, look, this is the time the uaw believes it has massive leverage on a number of fronts. Generally speaking, although these workers believe they are not getting full pay of what they should get in a new contract, but generally speaking, people are in a better financial position now than they were in previous strikes. In previous strikes, people off the job are saying im not crazy. I believe in the union, but not crazy about the personal financial standpoint. People are not rolling in cash, but in better financial position. Does that mean it lasts longer . It remains to be seen. We know the uaw has leverage. It believes it can push this much further than what we have seen in the past when it came to strikes with the big three. Phil, that is part of the strategy. Doing targeted plants with 9 of the membership out. The strike fund will last longer. They can keep this up. If they hit a plant that produces engines that shuts down, will they continue to pay the workers if they are not willing to do the work . Reporter that is part of the st strategy. Other plants are going and building. If they hit an engine and transmission plant, you would not see final assembly. As a result, the automaker would say youre laid off and go to the state unemployment roles. These people will get 500 a week from the uaw and assistance from health insurance. Otherwise, other workers continue to work not under the old contract, but pay remains the same as the negotiations continue. Phil, as they move around, i guess the question is how Much Movement or moving around of the strike do you imagine there will be and does that prove to be more disruptive and threatening to the business, if you will, or to the automakers than if there was an outright strike across the board . Reporter far more challenging for the automakers because they dont know where the next strike may take place and if they are completely shutdown, it is damaging to the auto workers. You layoff the workers and do the negotiations and at some point well fire back up. If the uaw, it is almost death by 1,000 cuts. You dont know what is hit next or production you have to shutdown all of a sudden. It is tricky and challenging for the automakers to deal with. Phil, the big three are already behind in evs. We know that. It is not going well. Ford, we heard about fords projected losses. Now ive seen jim farley say it this will push it out some time in 2024. If they werent striking, would they be catching up . I dont see any path to nearterm success for the big three in evs. This doesnt help. Reporter this doesnt help at all. In terms of the path to success for the big three with electric vehicles, it has taken far too long and it keeps getting extended out. Guys, this is weighing on shares of ford, gm and stellantis right now with the implications of the strike. You know why the stocks are not moving at all . People are looking for when will they do something with evs. By do something, im talking about market share and come up with a model that is a hot se seller. Get momentum. There is a question of when we will see it. For a long time is wait until 2023. That is here. Now they are saying wait for 2024. A lot of people are saying it is not there. Do you speak the language of the horn . The horns beeping, it is not get back to work. Thats im with you. Thats im with you. Hang in there. This is a just cause. Thats what those horns are saying to me. Reporter joe, the people who are on strike here are 3,300. This is the bronco and ranger. This entire plant is not shutdown. Final were seeing trucks that are doing work in here. Those trucks which suppliers to ford, nonstop honking. There is support not just from locals driving by, but the suppliers and people driving the trucks and bringing things in and out of the plant. They should be careful. It is possible to break a horn. You know from experience . I have done it a couple of times. I had to have a horn replaced. Prefer the horn to the breake. The horn breaking. Phil, we look forward to what is coming up in the 7 00 hour with gm Ceo Mary Barra. We have update on the Writers Strike in hollywood. From one strike to the other. The studios say it is working to schedule a meeting for next week. The Writers Guild reached out to it asking to move negotiations forward. Writers have been on strike since may 2nd. We should mention Nbc Universal is a member of the amptp. By the way, the writers reached out, but last time they had a meeting, the writers walked away saying they got a lecture from the studios about how great their offer was. We will see what happens. This is a long strike. Longer than the last strike of 100 days. They are not asking for 40 . By the way, when you talk to the uaw, they will say the teamsters got it for u. P. S. All of the negotiations tend to influence other negotiations taking place in all industries. We think hollywood is an a lot of a. I. Related. This is ev. These guys. This is robotics. Robots dont go on strike. We will talk to mary barra. I dont know how much of this is robots. There are more similaritiies than you think. Ending the tier system. This goes to the writers room. Meantime, when we come back, we dig into the a. R. M. Holding i ipo. First traded at 56. 10 and osed at 57. 10. And later, we talk tech with former microsoft ceo Steve Ballmer. You are watching squawk box on cnbc. Announcer this cnbc program is sponsored by baird. Visit bairddifference. Com. 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. Businesses need 5g solutions today. Thats why they choose tmobile for business. Mlb partners with tmobile to not only enhance the fan experience, but to advance how the game is played. Aaa relies on tmobiles network to stay connected nationwide, so they can help get their members back on the road. And were helping pano ai innovate, to stop the spread of wildfires. Nows the time to see what americas largest 5g network can do for your business. Wow, you get to watch all your favorite stuff. Nows the time to see what americas largest 5g network its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Welcome back to squawk box. Largest Public Offering in two years brought confidence back to the market. A. R. M. Holdings making a big pl splash in the debut. Here to talk about it is daniel newman. Good morning to you. Daniel newman. What did you say . Newman. This ipo did move. It is not a rocket ship, but given where things have been it is an inspiration. Do you think this is idiosyncratic to the company or is something broader going on . I think that was the first question, andrew, how much appetite does the market have for a tech ipo. Is this a rocket ship associated to a. I. Or is thissing something that is broader associated to the Semiconductor Space . I think the initial market pop it did see is everyone is super excited about the tale of two cities for semis. It is a. I. And everything else. Nvidia had the huge rip. A. R. M. Is a big part of the ho hopper. W we need more cpu cores inside the device. This valuation is eye watering and rip forward. I think it was a pretty big bump on the first day given the lack of ipos in the market. The a. I. Play is really early because for a. R. M. , that is not where most of the money is made. It is made in mobile devices. Thats where they are making their money. Where do you think fair value is for the company . Straight valuation . I think the valuation that the initial listing came out is a good indicator of where it should have been. The 47 to 51 price was about right. The time thereline you see in t premarket doesnt mean anything. I think the idea is over the next five years as microsoft and aws and qualcomms pc business and they move and shift from the mobile chip company to doing systems and enabling a. I. And entering new markets and raising margins so they can show decent profit which is going to be required. You look at nvidias success and it is tied to massive margins and revenue acceleration and leading an entire market. A. R. M. Is an association to the a. I. Market, but not driving the market itself. Dan, you remember when you could name the company in whatever was en vogue at the time and you would see people rush in at time. Do we have a magnificent eight now instead of magnificent seven . People would like to add to the magnificent seven. Is a. R. M. Cheaper than the magnificent seven . Are you getting a better deal there or are you already paying the same valuation for a. R. M. As you are for what are the established big tech stalwwstal . That is a good one, joe. Stalwarts have something that a. R. M. Doesnt have yet. That is the ability to drive significant earnings and cash. A. R. M. Is still in the early days. Revenue declined coming into the ipo. The amount of compute required for the a. I. Revolution is substantial. Over a threetofive year period. I like what a. R. M. Is going to do. You see the partnerships and backing from the industry and customers into the ipo. When you look at 25 plus times revenue right now and the declines year on year coming into the ipo, i just think everyone was really excited. We havent seen an ipi like this in some time. Everybody is getting out and participates. I would be patient before i say this is going to rip forward. Pcs are still down. Mobile devices are down. That is where a. R. M. s business is today. The growth is in data center and server is where i get excited and potentially into automotive. That is where you need to watch. This you see acceleration there, this could be a great play. We will leave the conversation there. Daniel, thank you. I appreciate it. Thanks. Have a great weekend. Sticking with ipos, instacart is preparing to raise the target price for the ipo after the successful debut of a. R. M. The target share price is expected to be 28 to 30. That is according to a wall street journal report which said it could disclose the higher target it in the s. E. C. Filing today. At the high end of the new range, it would be valued at 10 billion. That is coming up next week. Coming up, doordash is leaving the nyse for the nasdaq, where we were. I dont want to be a homer. Im a homer. I make fun of the New York Stock Exchange. And you like doughnuts. And i like doughnuts. Good job, doordash. The waters fine. Welcome to the nasdaq. We dont work for the nasdaq. The nasdaq is the future. Rewriting tomorrow. Thats the story ahead. Thats the slogan. Its upstairs. Do you go upstairs . Yesterday. It is that all over. We talk to the creators of dumb money. The maker of the gamestop mania in theaters this weekend. Squawk box will be right back. Good night hey corporate types. Would you stop calling each other rock stars . Youre a rock star. You are a rock star. No more calling coworkers rock stars. Look, its great that you use workday to transform your business. But it still doesnt make you a rock star. So unless you work with an actual rock star. Hi, im ozwald. Hello ozwald. Pam, you are a rock i wasnt going to say it. 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. 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Maybe it was the bacon. When we come back, new York Real Estate giant bill rudin will join us on the real estate issues out there in the commercial real estate and how many people are back to work and how many people are coming back. That and more. Coming up in the 7 00 hour, an interview you dont want to miss. Gm Ceo Mary Barra. We will hear her perspective on the auto strike. And as we move to break, lets look at the s p 500 winners and losers. sirens announcer executive edge is sponsored by at t business. Next level moments need the next level network. You covered. [please confirm requesting backup. ] changing route. Go. Roadblock ahead. Back up, back up. Reverse reverse next level moments, were 30 seconds out. Need the next level network. [north corridor, hurry ] coming through or 3, lets go. The network more businesses choose. Transplant received. At t business. Ive spent centuries evolving with the world. Thats the nature of tbeing the economy. Observing investors choose assets to balance risk and reward. With one element securing portfolios, time after time. Gold. Agile and liquid. A proven protector. An everevolving enabler of bold decisions. An asset more relevant than ever before. Gold. Your strategic advantage. Good morning. Welcome back to squawk box here on cnbc. We are live from the Nasdaq Market site in times square. Lets show you friday morning. The dow would open higher at 110 points. Nasdaq is off 13 points. We are looking at the s p up about 5 points. We are monitoring the news of the day or nation. A auto workers strike. They began overnight after the contract deadline passed with no new deal. We will talk to harry wilson who served on president obamas Auto Task Force and in the next hour, gm Ceo Mary Barra will join us live from detroit. We heard from the union 48 hours ago. We are watching shares of lennar as well. Beating estimates. Fell sharply from the same quarter a year ago. Revenue fell because of lower home prices. The companys coceo said Rising Interest Rates were continuing to aid Home Builders with more expensive mortgages making people reluctant to sell. We are sitting on