Two tech ipos making headlines. Plus Morgan Stanley, as carl just mentioned, upgrades tesla. Analyst adam jonas predicts a 60 rally, largely fueled by a. I. Were also getting shares of qualcomm up ahead of the open. Chip company saying it will supply apple smartphones through 2026. Lets begin with jim in san francisco. As we said, dreaming up for gearing up for dreamforce. Jim, going to be a busy week. Whats really crazy is that theres adam jonas just stealing the whole show. Theres conferences in washington, theres conferences in san francisco, and he makes it so its about tesla. All i can tell you is that out here, its just dreamforce is the aai force. David, you know this from when you were with musk. If you dont talk about a. I. , you sound like youre clueless. If you do talk about it, you better start having something to back it up. Adobes got it. Oracle tonight. But theres a lot of just a. I. Chatter that i think is just chatter, david. Right. And that is a key question for investors. We brought it up many times because every companys happy to mention a. I. As much as possible in part to try to get a multiple expansion, whether deserved or not, but to your point, were going to get a sense as next year rolls along as to whether there are really products that are going to be fueled by this generative a. I. , beyond the obvious beneficiaries that weve talked about so often. Nvidia, being number one. And then working on down from there, whether its microsoft or alphabet or interestingly, jim, id love to get your take on the story about meta, which is now working on a very powerful a. I. That they say will exceed what chatgpt can do. If thats true, i mean, it would be important. Its not really what people are focused on. I think people are focused on something that makes it so that you can very prosaic stuff, make it so data is easier to be able to use on almost a businesstobusiness way. I dont know whether meta is going to get into businesstobusiness or make it so chats more fun. Chatgpt is really limited by where the last date was that it has the information. Carl, i find that whats far more interesting, even though it is for numbers interesting but not interesting for people at home, is at dreamforce, which is billed as the Worlds Largest a. I. Festival, its about how companies can use their data. Its not about how individuals can be more creative. Yeah, it kind of feeds in with a lot of the constructive macro notes that we got today out of b of a, officially, they say we are in a recovery. If you look at their Business Cycle indicator, david kostin at goldman, were expecting some progress toward a soft landing. Cpi days, jim, as we know, pretty much all year, have leaned green. Im so glad you brought up those comments, because ive got Frank Slootman on tonight, the ceo of snowflake. He was one who really did say, in the spring, spending has slowed. He is now saying it has picked up, in some cases theres real green shoots here. David, i think people forget, they had a nice rally but not based on anything other than a. I. Goosing. But if there is indeed a revival of spending for information technology, and very good note today, i thought, from bank of america talking about how there is a return and recovery in finance. Dave, we got finance up and tech in recovery. You know that means rally mode for the entire stock market. What do you make of that, given the recent action that we have been seeing, jim . Particularly last week. Well, i think some of it, yes, has been foreshadowed, but at the same time, if you get a decent cpi number on wednesday, if you actually have numbers going up tonight for oracle, which is going to be very important report because they have done a lot of work with jensen huang and nvidia, carl, what will happen is that people will they have to take numbers up. We havent had numbers taken up. Weve had chatter taken up, and i think that numbers taken up could mean that we have a decent october, which would mean, you know what . Maybe youve got to stop selling safe fitness, and whats really going to matter is the arm deal. I think arm is going to turn out to be incredibly important because they are nvidias partner in the next generation reign. Weve got a lot of interesting things happening this week. Instacart, not so big, but if we get a big ipo from arm, look out. Its going to be a good market for tech and finance. By the way, journal, page one this morning, earnings revisions getting lifted, First Time Since the Third Quarter of 2021. Also in the journal, david, is nick, the socalled fed whisperer, basically the strongest language weve seen so far hinting at a pause in at least september. And that the debate within the fed is not as unanimous as it has been in recent quarters. Yeah. Theyre going to get it to 2 , right . Thats what the word is. So, well see whether, in fact, to requires them to at some point raise again, jim. I dont know the answer. I dont know that you do. But i think a market the market would anticipate a pause and would be surprised if it were not one, correct . Right. But i think if you get a redhot cpi and it breaks the skein, people can say, wait a second, theyre not done. I think this has been an antifed rally. It has not mattered. And the reason i say that is because there are periods in the 80s and 90s where you saw longterm rates go up and fed rates go up and yet the market rallied anyway, and not just in anticipation of the end but because business got better. Carl, were in recovery mode for business. First of all, people dont even realize we had a downturn, but we are in recovery mode. Things are coming back. The estimate revisions is the most important thing that could happen because it just means its not socalled pe multiple expansion. Oracle tonight will be crucial. Katz, if she is as bullish as she was when she was at the New York Stock Exchange, then youre going to see munumbers go up. If marc benioff, and my preview is going to be talking very positive, were going to see revisions higher. Thats going to be important. Maybe Little Wonder that the treasury secretary obviously playing a bit of a political role but on the flight back from the g20 says shes feeling very good about her prediction of a soft landing. I think you would have to say were on a path that looks exactly like that. So, what is there to worry about right now, jim . Is it about the strike and Student Loans . Look, i think that the strike look, ive been putting some numbers together about the strike, and i just do not get theres a lot of people who just think it really killed gdp growth. This is 180,000 people. They dont have enough money to go more than five weeks even if they do a 600 payout per week. I think theyre more likely to if theyre going to pick one, it would be stellantis, so i think its not a big focus. I think its a redhot cpi would make people feel very different, and i think oil going to 110 would make people feel very different. But right now, if we can hold 4. 5 for 20year, i think well feel pretty good. Takes us to this jonas note, david. Yeah. I mean, back to a. I. , really, because that seems to be fueling his decision to make it a top pick, a 400 price target, saying that it could add as much as 500 billion. The add there being dojo, their a. I. Effort. 500 billion to teslas enterprise value expressed through a faster Adoption Rate in mobility. Robo taxis, of course, and Network Services as well. Theyve been at 250. So, that is powering that stock this morning. Not sure where it is in the premarket. Had been up as much as there, you see almost 7 . Aggravating. Come on, aggravating. Look, the guys a showman, okay . Hes a showman. Yes, he has always been. There are any number of his reports i can remember that have very exciting titles. Yes. Yes. I mean, honestly, i mean, do you think the do you think the giants are that bad . I mean, this is like a onehit thing. Wait. Whats the onehit thing, though, jim . That he was against the stock from the hes been fighting this stock, so suddenly, no, he doesnt have to fight anymore, you know why . Because hes been fighting out i. T it as a car company. Jensen huang is saying, this guy is taking my chips because he doesnt have enough of his chips, hes creating brains and now creating himself, a man with two brains . I saw it, its funny. Did i hear you say musk is creating himself as a man with two brains . The brain is nvidias brain. Its jensen huang. I got that from you. Which part . You killed musk. I dont know like, when hes sitting here, i dont know what he means. Its worse crosscountry. I dont follow. I just felt that you expect in your interview, he said that he needs nvidia chips. He thinks theyre really expensive, but he uses them for the brain, and it is absolutely true, when you break open his brain, not that i want to do any sort of neurosurgery, im talking about his not his brain, i dont know whats in there. Its like a lot of nvidia chips in there. You find that it is, you know, whether he wants it or not, its nvidia chips because he cant make them himself yet. Maybe he will one day. They have said right now, he cant. Management has said they need as much compute power, meaning the nvidia gpu clusters, that it can get its hand on and it cannot physically secure the amount of chips necessary to train cars. This is all about this is about the vision for robo taxis that musk did, in our interview on may 16th, outline, and he has before, talking about the real opportunity in terms of revenues from a fleet of taxis out there that they would split the owners with the owner of said car, jim. And this would be getting there. You know, as dojo increases its power and ultimately is a purposebuilt super computer designed by tesla to train the full selfdriving that you get to yeah, and then what do you put a multiple on that kind of recurring revenue stream . I just find yes, its possible that they could have an awslike business, that tesla could do that, and its entirely possible. Look, we knew that everyone kind of folded when it came to their charging. But you know, carl, my problem is that when you do a when you put a 500 billion business, when you say its going to be that, were not talking about 2023, 24, 25. And the market works and discounts out about a year, but jonas does it out about three years. Hes out of sync with both the economy and this stock market. So, i didnt like this call at all. I like the hostess twinkie call more, frankly. I hear you. Listen, its a fair point jim makes, certainly, that the guy had a 250 price target, so obviously below the current price target. Hes been equal weight for a very long time and theres a large disclaimer in the note that Morgan Stanley does and seeks to do business with companies related to tesla. It may alter or imply a conflict of interest in Morgan Stanley. The only thing that was true about that note is hes not corrupt. Hes not corrupt. Thats true. Ill tell you what Morgan Stanley would love to do is get out of that 13 billion that it financed the twitter deal. Any bids . Jim, what do you want to bid on that . Theyll listen. I promise you, they will listen. Linda yaccarino, i think shes been saying its 10x. Get that . Since twitter is x . Morgan stanley provided that 13 billion in financing. They will take a discount, i guarantee you, and a significant one to get out of that commitment. Really . They cant put any new capital up until they i was agreeing with you. I was being facetious. Theyre out of the leveraged transaction market to some extent. Theyll dispute that, but its true. Jim, speaking of we had an adl guy on last week about this thing. This thing is so controversial. We dont want any of this stuff. I think this thing is not really coming together, david. Its not coming to fruition. Jim, speaking of chips, qualcomm going to enjoy what we think may be its best day since may as they extend this modem chip supply agreement with apple, which does raise questions among some this morning about apples preparedness on their own chip as theyve gone vertical in the past. Its been six years since they thought that they might have this. I was rather surprised. I dont think it was in anybodys business. I think that as much as he loves to speak much more aggressively about his earnings, if you can get my drift there, david i get it. I get it. Incredibly nice guy. Oh boy. Oh, yeah. Nice guy index. Ng. Per share. But ive got to tell you, this is one of those that it did make me feel like, really . You dont have your own modems yet . Especially because they dont like each other, as you know. Theyre not friends. No. They have had a good amount of litigation in the past. All of it, resolved. But yes, youre right. I dont know that they are an overly friendly. No. Apple has i mean, the m2, i have those laptops. Man, they are super fast. Replacing the intel chips. So, they have a track record of developing their own chips. I have no idea whether or what the time line looks like for this one but certainly not going to be until 2026 at the earliest. I dont want to ruin the narrative because it was so great last week, but the store the apple stores, carl, jammed this weekend in china. I know it doesnt go with the narrative. Were supposed to, full stop sales sales, but the stores were jammed. Those were not actors. I think those are people who are buying apple. Maybe even the one that david was talking about, but actually the cell phones. The stores in china . Yes. You got channel checks for us there . Yes, i have channel checks. Okay. Just making sure. No, no, but i you know what . I said, im just going to make it up. Im going to be like the im going to mention it again, like the giants offense. Im trying to get someone to bite on this thing. Come on. That game was our game. It was the first game. Im more a jets fan than giants, but i do root for them. Ill bite. You want to talk about the mets now too . What else would you like to do . I actually think the jets are going to play a good game tonight. Probably will. Siriani says your birds are going to have to reevaluate after that Second Quarter. What we have food is have linebackers. We had nine men on the field at one point, i think, and not just in the terrible Specialty Team phase. That nineman thing against 11 is always bad. The main thing tonight is if youre a spectrum subscriber in new york, what are you going to go to . Im trying to decide. Hulu live. Fubo or youtube. Got to make that decision today. Were going to talk a lot more about charter versus disney later in the program. Are you surprised its come to this . No, im not, in part because i listened to Chris Winfrey at the goldman conference, and i have been doing a good amount of reporting on this. Are you boeing me on my disney position in the trust, david . Are you boeinging me . Youre doing a boeing on me. Were going to talk about it. Dont boeing me. Talk about i could believe it. Youre boeing me. Features quite prominently. Guys, lets take a break here. There will be a moment of silence in a moment at the big board and the nasdaq. There are some things that go better. Together. Burger and fries. Soup and salad. Like your Workplace Benefits and retirement savings. With voya, considering all your financial choices together can help you make smarter decisions. Voya. Well planned. Well invested. Well protected. Meet gold bond healing. A powerhouse lotion that moisturizes, heals, and smooths dry skin. 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Its been said that even 22 years later, the sadness never truly leaves you, but we remember the victims. We remember the bravery of the rescue personnel, and we try to remind those who increasingly are too young to remember that day how much was lost. Robert j. Hall. Jane marie collin. John michael collins. Michael l. Collins. Thomas joseph collins. Joseph kent collison. Jeffery dwayne. Patricia maria. Robert spiesman. Patricia jane stats. Coach saban, this goat done took over our office. And hes using it to send out medical bills. Good hands hospital bill for prime . gaaaaap did you just say gap . hes talking about Expenses Health insurance doesnt cover. Good thing coach prime knows about. Say it one time aflac because aflac gets you money to help close that gap now how do we get this goat outta here . whistles aflac meet one of my new homies gaaaaap get help with Expenses Health insurance doesnt cover at aflac. Com. Elephant wouldve been scarier. Futures looking pretty good here on the back of that tesla upgrade, which we talked about a moment ago. Well get to some of the other developments, boeing, walmart news. When we also come back, a crosscountry edition of amsmada uawk on the street continues. The opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. Lets get to our first crosscountry mad dash of the week. And jim, hostess is getting bought by jm smucker. 5. 5 billion. That includes debt. Its 30 bucks in cash and 0. 3002 shares of smucker. That amounts to about 425. Total price before we begin trade, 34. 25. General mills wanted it too. I think a lot of people remember hostess as going bankrupt twice. Dave, ill tell you why i like it. I like it because people are still snacking, and i think that matters tremendously. I have them on tonight to talk about the deal, but Andy Callahan turned this company around, and it was not the company that people remember as being, lets just say, suboptimal when it came to its numbers. I think the deal is fine. You got ding dongs, a lot of what i regard as being the ultimate, lets say, fattening snack food. There you go. To your point, it was an auction, conceivably, and they came out ahead, b