Here we go, folks. Its thursday. Lots happening this week. If you check out the futures, they are higher. Dow futures up 90 points. S p futures up 12. Nasdaq up by 50 points. This does come after gains for all three at the major averages yesterday. Treasury yields have picked up a little bit. We have looked at the 10year treasury above 4. 3 . Now at 4. 26 . 2year treasury has been just at 5 . It is at 4. 98 right now. Lets update you on the looming auto workers strike. Shawn fain said the union and automakers are far apart ahead of the likely strikes. The strikes would begin at an limited number of locations. An allout strike is still a possibility. Fain providing clarity with talks with each of the big three. Ford offered a 20 raise followed by gm at 18 and stellantis at 17. 5 . The union has been pushing for a 40 wage increase. In the meantime, a bitter battle of words with jim farley saying fains accusation saying they are not negotiating and not showing up at the bargaining table. He was supposed to be there on tuesday and far therley was not there. We will have more with phil lebeau on the story coming up. They are using u. P. S. As a template as what they want to get through. It doesnt sound like they will get to the levels. Farley i didnt get optimistic with our interview with farley or with shawn fain. Competition is just a race to the bottom. I dont know what that means. It is the way of the world. It is what drives profitability and capitalism and Everything Else is competition. I dont know. Maybe you need to subsidize the big three and that is the only way to do it. If it is too expensive to make cars over other automakers that will happen again. The idea if you see the wages as they point out, fain said 5 to 8 of costs that go into the labor, the problem is you have labor down the line if you look through the supply chain. All of the labor payments are based on this contract. All of that fades into the cost of the vehicle over time. The most impressing thing is the journal talking about the census that the average worker has lost 4,000 of real income since 2019. Which is why they are asking for gains like this to make up for it. Thats the problem. Inflation eats it away. We cant blame all of the inflation on joe bidens policies, obviously, but some of the spending has to do with that. You have the well intention programs where you think stimulus or ways of transferring wealth to help income inequality. You do all of those things to help the people on the low end and if you connect all of the dots to where it leads, the inflation causes the people you are trying to help be worse off than where you started. You look at the reallife experiment around the world. Look at the 4,000 figure behind in the United States. Do tyou go talk to the people i europe . Our inflation has been man imperially managed better than any other country around presidethe world. Thats not new. To look at the spending piece of it by the way, could have been done better. What if it wasnt done at all . I also think it is a separate piece. We can look at the Biden Administration and trump administration. At the time, we can relitigate covid and policies and all sorts of things. The truth was we needed to help people who, by the way, back then were not losing 4,000 a year by inflation. They were losing 4,000 a month because they didnt have a job to go to that would pay them. What about the stimulus in the third andi fourth round . Look at this headline. More People Trust Trump than biden. They looked at every possible way not to say that. I guarantee you. Other numbers. Anything in the world for usa today not to put that in print. What causes that in voters minds to think that . I dont know. You and Jared Bernstein cannot find out why voters have it good under bidenomics. Im arguing well intentions. It leads you to help the people that you are hurting. We can debate this all day. We can debate the last piece of spending. Go on. How much of that is the i. R. A. . It is trillions. It would double the deficit from last year. You want to know why people say this . When they look at unemployment rates and they look at honestly they are making 4,000 less in buying power than four years ago. Gas prices are 70 higher than when he took office. Thats true. Thanks. Im saying i think the oil piece of it is a big piece. And groceries. And all that. I also think they hear it over and over again. Thats how this happens. Okay. They dont really know they dont have money after they buy groceries . They are hearing it from who . Not the mainstream media. No, no. Where are they hearing it . From me . We need to talk to neilson. I dont feel im reaching that many people. A. R. M. Holdings will begin trading under the symbol arm. Leslie picker is here with more. How are you feeling . Are you feeling flush . Im shocked when everything costs 7. Doesnt matter what it is. Thats why i made my own coffee at home, joe. It is getting crazy out there when you buy 7 coffee. This ipo also quite expensive. Pricing at the high end of the range. Largest we have seen in years. Some are hoping for a successful debut will pry open the i po window which has remained shut for 18 months. Investors are mixed. Val anuation coming in hot more than 100 times last years earnings. That is double most of the piers. Peers. A. R. M. s top and bottom line vs shrunk the last six months of the year. A. R. M. Is playing into the trendy areas of business right now. Chips exposed to a. I. A. R. M. Said it is central to a. I. And Machine Learning by working with alphabet and meta and nvidia to run a. I. However, a future risk is the exposure to china for a. R. M. A. R. M. Says it faces increasing competition with Chinese Companies which develop their own ip as beijings push to have a self sufficient Semiconductor Industry by 2025. It may make it tougher for a. R. M. To compete there. The shares are set to begin trading within the next seven hours. This is not my only coffee today. It is my first. Thank you, leslie. I might have another one this morning. Normally i dont. Caffeine. A love hate relationship. You give me a duff beer from the simpsons. You open it up and it is a false front. Programming note, david faber has the interview with the ceo and founder of a. R. M. And softbank. Masayoshi son. You know him . You call him masa. Just masa. His friends do. Those who know him. 90 of the company. I wish i owned 90 of something. When we come back, a busy day for Economic Data and the ecb latest Interest Rate decision is coming up. We will get you ready next. Also, survey data found that less than half of gen gen z americans are thriving in their lives. Suzy welsh will join us to talk about it. You are watching squawk box on cnbc. Announcer this cnbc program is sponsored by baird. Visit bairddifference. Com. You know doug, ever since switching to workday youve been a real rock star. Rock star . What do you know about rock stars . Billy idol . I mean wheres the skintight leather . My shoes are leather. Wheres the unnecessary zippers . That thing billy, rock star is just how doug feels when he uses workday. Thanks, rory. Ill show you rock star be a finance and hr rock star. Workday. For a changing world. Billy idol just stole your golf cart birds chirping go. And go and go and go. but what if you. Stop . You work hard, its time for a bank thatll work hard for you. Everbank brings security and a guarantee that youll earn a yield in the top 5 of competitive accounts. Going, thats what got you where you want to be. Were the partners for your next move. Everbank. Advantage, you. music ev k. The walking tree is said to change its entire location in pursuit of sunlight where could reinvention take your business . Accenture. Let there be change. 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. The ecb set to release the latest Interest Rate decision at 8 15 eastern time. At jackson hole last month, Christine Lagarde stressed the outlook is still uncertain. We will monitor her News Conference and bring you high highlights. We have Economic Data in the u. S. And august Producer Prices and retail sales as well as weekly jobless claims this week. Two Earnings Report after the bell is adobe and home builder lennar. We are watching shares of hp. Berkshire revealed in a filing yesterday it sold 5. 5 million shares of hpq for 158 million. That reduces the stake below 2. 3 billion. No word on why berkshire sold. The share price has fallen 19 since berkshire revealed an unexpected 4. 2 billion stake in the company. That stake was revealed and yesterday, they sold a portion of it. That was over three days. Monday, tuesday and wednesday they had to file because they owe more than 10 . Joining us with her top picks and what she thinks about the market is stephanie link at hightower. Stephanie, before we talk about the three top picks, lets talk about the a. R. M. Ipo. It is capturing the attention of the market. It is a huge ipo. If you are looking at pricing, it is relatively expensive. The only other one that was more expensive was nvidia. What do you think about a. R. M. . It is an interesting story. 20 times revenue. I think the important more than aspect here is less on the stock and more on activity in Capital Markets which is starting to pick up. That is very interesting. It coincides with what james gorman, ceo of Morgan Stanley, said in the last month. Capital markets and Investment Banking is starting to pick up. That is encouraging and healthy. Makes you feel better about stocks overall . Juices are fleeowing again . It does and for the Capital Market stock. The way to play the a. R. M. Deal is by owning Morgan Stanley or Goldman Sachs or bank of america. Those stocks are left for dead, if you will. They lagged materially this year. It there is real opportunity here. Lets talk about your favorite stocks. Part of the consumer and what you think about things. You own tjx. You think the consumer is in decent shape . It has been in good shape. It is empowered by the job market and higher wages. Inflation is hurting to some extent. That is why i like the off pricers. All an of the excess inventory in the retail channel will help the industry and people are trading down to some extent. They like the treasure hunt. The long term algo for tj is two times sales growth and expansion and market share increases. They have about 46 of market share. I think they can get to 50 over the next couple years. Remember last quarter, they grew comps at 6 and gross martgins t 254 basis points. I think that will continue to be the theme throughout the rest of the year. Stephanie, we have talked about oil prices and how they have picked up again. Why do you pick halliburton . It caught a bid the last couple weeks. Im looking for the laggards. The halliburton has lagged. It is up 7. 5 year to date. The stock trades at 14 times forward estimate. It is the leader in the u. S. Onshore market. I think their International Exposure is under appreciated. You are starting to see a balancing in the demand in pressure pumping in north america. That should lead to better pricing. All of the Oilfield Services companies, becky, implemented technology for pricing power. This company is doing the same thing. They have the electric pumping Business Technology helping their customers become more efficient and gives them more pricing power. I like it because it is cheap and i think you will see a second half of the margins. We talked about inflation. Yesterday we got ppi and today is cpi. That played its way through the companies. Farmers have had to deal with higher inflation costs. That is a story for a while. They got even squeezed for years. What makes you optimistic about deere in. Deere . It trades at seven times ebita. It is running at 25 of 2023 levels of 14 billion. I Like Technology implementation with precision agriculture technology. Margins are expected to grow over 500 basis points this year as a result of their technology. Industry leader. Good new orders and cheap stock. I think overall farmer profitability is better than expected. Stephanie, thank you. We ran through a lot very quickly. Thanks for getting up early. Sure. Coming up, musk has a beard. Did you see that . I did see that. The big take away from the high profile summit in washington. Thats coming up next. And arbys is the latest fast food chain to face a lawsuit accusing it of false advertising. You know the advertising. Squawk box will be right back. Announcer stocks to watch is sponsored by cla. Book a work trip. Earn onekeycash. Shake some hands. Do not forget to laugh. [laughing] book a getawayfromwork trip. Use onekeycash. Order some sides. Do not disturb. Join one key to earn and use rewards across expedia, hotels. Com, and vrbo. Rich, velvety coffee. Cafe quality espresso. One highpressure system that can do both. Brew to your Hearts Desire with the lor barista system. A masterpiece in taste. Welcome back to squawk b box. Now to the a. I. Summit in washington. Heres what elon musk told cnbc after the mooeeeting. It was a very civilized discussions among the smartest people in the world. I thoughtsenator schumer did a Great Service to humanity here. I think something good will come of this. I think this meeting will go down in history for the future of civilization. Chuck schumer did organize the meeting and asked everyone in the room if government needed to play a role in governing a. I. Everyone raised their hand in the room. Senator ted cruz shared a skeptical view of the congress ability to remegulate emerging technology. Of course, congress doesnt know what it is doing with regard to a. I. This is a body where, you know, it seems the median age is 106. It this is not a tech savvy body. One of my coal lleagues a few ys ago referred to the internet as a system of tubes. The idea of the members are barrelling down the road to have the federal government regulate a. I. , i think that makes no sense at all. We will bring you more details from the a. I. Summit in the next hour. If not them, who . When elon said some of the smartest people in the world, i assume he was talking about the tech executives. He was. Obviously. Its them and the politicians, right . Are we in the top no. Arbys is facing a Class Action Lawsuit claiming the roast beef sandwich advertising is not real. It is not as big as you said it was. It is about the quality of the meat. Any advertisement where the product looks like in real life. It is not roast beef. The court filing is that sandwiches contain half the meat. Quantity. Advertised in the marketing mat materials. The brand intentionally portrays the sandwiches as larger than they are. Its just the latest in a series of lawsuits against fast food companies, including burger king, taco bell hold on there. Alleging the menu items served are not the same as those in the advertisement. Remember the horrible taco bell you said david novak they said it was mystery meat. They pretended it had hardly any meat content in it which brings us back to the great first vacation. Vacation the movie . Hamburger helper. Theres no ground beef, eddie. They really dont need the meat. They didnt have the money. Sad. Remember that . I dont. You know who watches the show . The legend randy quaid. I remember the movie. I dont remember the scene. I dont think he minds. That was an iconic. Al bundy is mad he is still al bundy. He is happy with the role of modern family. Coming up, suzy welch will join us on gen z generation is optimistic, not pessimistic. As we go to break, here is a list of yesterdays winners and losers from the the s p. sirens announcer executive edge is sponsored by at t business. Next level moments need the next level network. Ase 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. We earn your trust. Maintain our financial strength and stability. And deliver solutions that meet complex needs. Massmutual. Partnering with financial professionals, benefits brokers, and institutions. No matter what youre up partnering with financial professionals, against, we have your back. We are united way. We are neighbors helping neighbors in communities around the when disaster strikes we get you back on your feet. We help children build brighter. Weve been here for over 135 s but now our work is more. Join us. Join your neighbors. Join united way. Good morning. Welcome back to squawk box. Were live at the Nasdaq Market site in times square. Look at the screen. Its green. 90 points up on the dow. Nasdaq up 60 points higher. S p opening 15 points higher. Also with optimistic news. Suzy welch is here. The latest survey reveal that 76 of generation z feels optimistic about the future. 40 only feel prepared for the future. We will talk about that in a second. While they feel hopeful, it has hit a hreedecade low. Here is school of business professor suzy welwelch. They feel better about the situation. You know, when i first read about the results, i thought the death of gen z is exaggerated. Our generation is they are over. They are entitled and lazy and dont want to work. They are filled with hope and optimism. The number is high. 76 is optimistic about the future. 85 believes they will achieve the goals they set out for themselves. The general population, us, not gen z say forget it. They will never achieve an anything. Who is right . We will find out. They want to know how to achieve. They want to learn more. I think they want a different future. That may be the source of the frustration. When the poll asked what is your dream and your american drea