Scooped all the bears. Thats where our road map begins this morning. The inflation picture, of course, is what were talking about. Weve got wholesale prices increasing less than expected, as jim just said. Two banks also lowering their rate cut expectations. Thats off of yesterdays cpi news. Were keeping an eye on big tech as well. Nvidia shares, theyre bouncing ahead of the open. Jpmorgan, lowering its apple price target, and you just heard from amazons andy jassy, saying so many Different Things, including the fact that hes committed to costcutting while investing in a. I. Plenty of other stocks to track this morning. Nike, airbnb, chevron, occidental. Well go through all the upgrades and downgrades. Lets get to the Broader Market here. First, lets get a reaction to ppi after yesterdays selloff on the cpi. There was a lot to like. I think theres a lot of confusion about these numbers. I find that whats happened is that yesterday, there were a lot of mistakes in the data. What do you think by mistakes . Theyre not taking into account a lot of econ. For instance, they had apparel up. The largest seller of apparel after amazon is temu, and temus lowered the price. And jassy just said consumers are trading down. I heard him say that at the very top of the interview with andrew. Theyre getting good value. The average price yesterday of footwear on temu was 89 cents. How can you not include this in the cpi . Ppi is a little more intelligent. Food was up big because of the avian flu. I think if you look at the way they do that, the labor department, i would go in there and clean house. I would do a little deadwood chainsaw. What else here . Because i think we id like to go to carl, because i need some optimism right now. Youre not going to get it from carl right now. Why not . That sunrise scene he looked great as always. Thats optimism. Its going to be, well, hes going to be with cities of success tonight at 10 00. Are you saying the deck is stacked . No, but what i think is you seem to want to emphasize the ppi today as opposed to the cpi tomorrow. We had a significant selloff as a result of that cpi number. Everybody now coming way back on their expectations for rate cuts during the course of this year. I dont know if many are now coalescing around one or two. Certainly not june. I just think that ppi numbers not going to change that. We got to keep perspective here on if we didnt have these aggressive projections on rate cuts, we would be, like, okay. Not great. But let me tell you something. You raise the thing that worries me most is rent and housing. Remember, housing is out of the cpi, because in 1980, they were worried about housing inflation. They wanted to make the number look big. We have an immigration problem, and we also, if we raise rates in the affordability of houses, its going to get even worse. The feds in a box on housing. Some people would also say the feds its not their problem, but Richard Fisher was on yesterday talking about it again, that auction yesterday, by the way, didnt go as well as it might have. The auction meaning, concerns about so much so much supply to help fund our deficits and not enough demand, and thats a concern as well this year. Do you share that concern . No, i am concerned about that, because huge supply. I mean, just dramatic supply. Our man in chicago is hes grading real hard. Santelli is grading real hard. Hes whatting . Grading. Not grating. Hes grading. With a d. Watch yourself. With a d, not a t. Im just trying to figure out what youre saying. What matters to me here is when i got a d once in biology, i went to see the professor. He asked me how id done all my life. I said, i got nothing but as. He said, this is going to be a great learning lesson for you. I feel this d was a great learning lesson for people. Supply is probably more important. In terms of the grade yesterday on that auction is what youre talking about. Again, were talking about the treasury market here, which obviously is very important for the performance of the equity market. At least, it was yesterday with rates moving higher and stocks moving lower. Thank heavens we offer better rate than a lot of other parts of the country. Theres a look at the tenyear. Oh, come on, david, youve been around when the tenyear was 7. 9 . I have, i have. Enough. I have actually been around when it was higher than that. I remember when you were wearing that jacket for 7. 9 . In the late 70s. Actually, with volker, we were hitting, what, 18 . Poly and esther,my two girlfriends in that jacket. Thank you. I happen to think that andrews amazon made me feel really great. Why . Because spending on a. I. , he obviously has a very positive view on a. I. A lot of people yesterday were in a. I. Bubbleville. You ever notice when everythings bad, its like people come out and say, before i get at the cpi, let me tell you what a joke a. I. Is. Yesterday, people reacted to the futures, and i hate that. Have some gumption. Have some backbone. Futures are bad, i hate a. I. . Two excerpts from andy jassys interview, the first on the consumer and spending. Lets take a listen to what jassy had to say, of course, which is from what is the largest marketplace out there for many americans. Its going to take a lot partner people not to buy detergent or shampoo or things like that. You can see that in the growth of our Everyday Essentials business, which, last, q4 of 2023, was over 20 year over year. Some of that is because people are going to buy all the time, but some of that is because of the speed we have, and were getting to people, but people are still they are still buying. Theyre just being careful about what they shop for. Kind of interesting. Being more careful. When i was up there to talk to him, one of the things, its so easy to be careful, because comparisons are just incredible. Its not like the supermarket where over here, its this, the sizes are different. The headtohead is so easy. Remember, they put the chinese on. The they put one of the great things that jassy did was say, you know what . I will compromise and charge a little more for temu, but well give you a date of when it comes, and people turned out to care more about the date than the actual price. Im focused on temu because it is 100 Million People in this country. Yep. I tried temu. I told you what happened as our viewers may recall, you tried buying your wife a bathing suit, which i have said previously, was one of the dumbest things. Shes not a smoker. We had no problem with the fireproofing thing. The only thing they left out of it was asbestos. As long as its not friable secret way of trying to see if you could get a divorce. It had to be. Thats the only thing you do that for. It was black. It looked cool. Youre even going on temu to take a look at some of the bargains. I go on temu constantly to see how much i pay when i go to tj maxx. Is it really the same quality of stuff . Kind of. Theyre both plastic. Tj maxx has some great stuff, come on. Its one of the great retailers in this country, as we point out. Its got a market cap so far above targets, for example. 1,300 stores. Its fantastic. But i think that people are looking at dove. Theyre not looking at dove and kohl. They look at dove and then ivory. Im going to use jassy to transition us to nvidia. Take a listen to what jas sy ha too say. Most of the early a. I. Models were built by nvidia, but supply is more scarce, and people are concerned about cost, so weve built our own custom silicon in a. I. Weve built a training chip that are meaningfully more price performant than what you can see out there. A lot of the training and prediction are going to be done on those chips. Which gets to big tech, which gets to nvidia, which is up. It was up yesterday as well. But this i dont know if its a nascent concern, jim. Jensen discussed it. Youre going to start hearing that alphabet and amazon are designing their own chips in some way to replace part of the nvidia ecosystem or not . Lets go over what jensen huang said to me. He said, listen, its terrific that were developing it, and were working with them to develop it. One of the things we have to separate. Amazon web services is very different than actual amazon, and Amazon Web Services is truly built on nvidia. Away from that, you have a lot of good stuff that amazon is doing. Web services is nvidia. Jensen is not you know, he always says, i come in peace. He said to me, i hope they do a good job. Theyre my customer, and well help them in any way we can. You cant get the chips you want from amazon. This is in many ways a defensive move. Nvidia, not nvidias out. Theyre, like, this blackwells already sold through that theyre coming out with september. They havent even come out with it yet. Theyve got orders for blackwell. Lets just understand that a lot of this is trying to help people who cannot get enough. If we had michael dell on right now, do you think michael dell would say, listen, were doing pretty well, we got a lot of nvidia. Whoever gets the nvidia wins, but theres not enough nvidia. It continues to be right, there are simply the benefits to having the orders, having the ability to have the orders and have that matter. Why would jensen say he had no comment . Why did he say, listen, were trying to help them . Its not because he doesnt want anyone angry at him. He has an amazing relationship with zuckerberg, and zuckerberg wants all the chips he can get. One of the things that jensen said to me was that zuckerberg would buy everything. Amazon would buy everything. Right. So, you dont question the continued demand for nvidias product, and i come back yesterday, when we had a discussion about it, the 28 multiple on calendar year 25 earnings. Its youre talking about its just not an expensive stock. Youre talking about them not being able to meet demand at this point, one would anticipate the growth rate is going to be pretty significant. It will be. This is selling, as of right now, its at 26 times 2026 numbers. Yeah, yeah. I mean, Procter Gamble is more expensive. This is a technological marvel. And you know, i just dont understand how people value it so inexpensively, and yet all i hear about is how kpexpensive i is. Its a bubble, its a bubble, its a bubble. Enough with the bubble. Can we go to carl . Lets do that. Carls in colorado. He gives us a sneak peek of cities and success denver and boulder. Premiers tonight. David, you know, jim is on the hunt for some optimism today. We should remember that the reason prices are so sticky in this country is because a lot of major metro areas are growing above trend. Tonight, were going to take a look at that in denver and boulder with cities of success. Well talk about it after the break. Trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the awardwinning trading platforms. Bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. Tailor the platforms to your unique needs with nearly endless customization. And track Market Trends with uptotheminute news and insights. Trade brilliantly with schwab. sirens [due at target in 5 ] copy that. Make a hard left down the alley. Networks got 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. My name is oluseyi and some of my t favorite momentsd. Throughout my life are watching sports with my dad. Now, i work at comcast as part of the team that created our ai highlights technology, which uses ai to detect the major plays in a sports game. Giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. Hey, welcome back to squawk on the street. Were in boulder, colorado, this morning ahead of our series, the latest in our series tonight, cities of success denver and boulder. Jim and david, i heard you guys talking about, its an appropriate week to be doing this show tonight, because a lot of worry about inflation in the markets, but a lot of that is the result of economic growth. I see williams is out today calling for 2 fullyear gdp, and that means a lot of American Cities are growing. So, we take a look at some of the policy decisions that have gone into play in bringing big employers to town. Historically, im sure you guys know, denver and boulder have been about old line industries, telecom and energy. Its much more now about quantum computing and Life Sciences and certainly aerospace. 191 companies here in the aerospace industry. Some of them literally working on building gas stations for satellites in space. Now, in order to do all that, you need a labor pool that is mature and ready to hire, and thats something we talked with governor jared about. Take a listen Many Employers looking at workforce. Colorado shines. Great workforce. People want to move here from other places, but we also have a great preexisting workforce. Both. Number one. Great, low taxes, positive Regulatory Environment. Great quality of life. Were making progress on housing, but it may already be less expensive than some of the other markets youre in. If youre in new york, new jersey, california. Were going to be more competitive, and were doubling down on that. They definitely are working on housing, guys. They need a lot of affordable housing. Right now, theyre offering incentives to various developers. Theyve got as much housing under construction, guys, as los angeles, which has five times the population. The governor likes to talk about property taxes, says theyre 48th lowest in the country. Jim, just as one example, remember the other day when you took your belt off on the show . Sure. So, i was i was speaking at the university yesterday, and a viewer approached me, literally moved to boulder to start an Apparel Company that does make leather belts. So, i have this for you. Im going to bring it back. They want davids belt size as well. I just thought that sort of crystallized exactly what were talking about. It really does. I also think i think that the kind of people would be drawn to working on that and then right behind you are some beautiful mountains, and youre done at 4 00, and you go climb one of those mountains, which is just a total rush, and we cant do that here. I think the people who are creative and drawn, these days, to really interesting things like to go hiking or skiing at 5 00. And i think its really one of the great things they offer there. Yeah. Its interesting. We do a bit on vc funding. A lot of vc has moved into the area. And they do say that, youre right, 20 years ago, we would have moved our startup here because we like the lifestyle. We like the 300 days of sunshine. Now, its really about the fact that the labor is first. The talent pool is here. And you have the added benefit of having these things these mountains behind you, and the work from home, of course, remote work phenomenon has just accelerated that. But its almost the inverse of what was classically the story is that you move here for lifestyle. Now, youre moving here for productivity. Yeah. Can you find a place to live . Is that becoming more difficult . Im sure thats part of your coverage as well. Yeah. Diana does a great piece on how quickly you can get affordable units built in a town with faster permitting and developer incentives, but thats really the key challenge. We take a look at not only the housing challenge but the migrant challenge. 40,000 migrants have moved here. Thats the highest per capita in the country for a major metro, so we try to look at both sides tonight. Well, carl, one of the things im intrigued by is that there are companies that are headquartered in california, but their whole workforce is where you are. That is true. That is why a lot of the entrepreneurs here are thinking in terms of a new silicon valley. I think its senator hickenlooper says its not dogeatdog here when it comes to startups and tech. Its more like hunting like wolves in packs. Trying to make the ecosystem work for you, just as much as youre working for your own individual firm. I love it. Yeah. Just fantastic. Carl, looking forward to it, of course. Know well hear more from you during the course of the day. Thats a nice shot too. Yeah, i love that shot. Cities of success tonight, premiers at 10 00. Coming up right here, jim is going to have a mad dash for us. Were going to count you down to an opening bell that is ten minutes from now. Heres another look at futures. We got a lot more for you. Squawk on the street is right back. Investment professionals know the importance of keeping their clients on track. Sometimes they need help cutting through the noise, to ensure fresh investment ideas keep flowing, and to analyze the market from every angle. At allspring, we deliver the unexpected, by relentlessly exploring where others dont. Allspring, follow the insight. [busy hospital background sounds] this Healthcare Network uses crowdstrike to defend against Cyber Attacks and protect patient information. But what if they didnt . [ominous background sounds] this is what it feels like when cyber criminals breach your network. Dont risk the health of your business. Crowdstrike. We stop breaches. Okay, it is time for a mad dash. Weve got seven minutes before we get to an opening bell. What do you got . Constellation brands, stz, this morning reports numbers that i have been waiting for, frankly. Were talking about some depletion numbers, which is how you really measure whether a company is doing well. Modelo especial, 14 growth. Pacifo, up 22 . Great cash flow. This stock has historically failed almost every single time when they report their number. It opens up and goes down. I dont know if thats going to happen this time. The family and the control or not the control. They bought out the family. This thing comes around, its like people want to make it a takeover target. I dont know who the buyer is. Antitrust would never. If irobot cant get a bid. They got corona from the Justice Department. It helped create the success of this company, the forced divestiture from anheuserbusch. It was the greatest giveaway in company history, but they had to give it to somebody. This was a number that was aided by a backlash against bud light. Yes. Which was the biggest beer. Modelo. Number one. And the modelo numbers are extraordinary, and dont forget, if you sell it right now, send me an invitation to your funeral, because Cinco De Mayo is coming up. I made my month at bar san miguel on a beautiful day. I miss bar san miguel. I had to sell it. You cant own a liquor brand and also own a restaurant in this country look who you have on to be the. Bill newlands. Yeah, because