Market, you will see it looks like the 10year treasury is sitting just at about 4. 29 . The 2year treasury is below 5 at 4. 99. Last week, the transports did see the worst week since march. If you worry about things like that, the downturn, the russell 2000 broken. The dollar is now looking at its longest winning streak in terms of weeks. Weekly winning streaks since 2015. A lot of things to watch this week. We are watching shares of alibaba, talking about kicking things off, after the company said in the surprise move its Ceo Daniel Zhang planned to step down this month. Stepping down as chairman and ceo of the Cloud Business in june. Alibaba said he was going to be departing as the ceo of Alibaba Group to focus on the cloud unit which the company is spinning off as a separate company. Now the cofounder eddie wu was set to take over from zhang this month. He is now going to be taking over the cloud iunit. Joe tsai will take over alibaba. This raises questions of the spinoff and how unhappy he was from that role to this role. We talked about this at the top. I guess it matters the expiration date. Old twinkies arent good. I dont eat 17yearold ones. I havent had a twinkie in ten years. The what are they . Preservatives. Good in a szombie apocalypse. Hostess makes other things. Hohos. None of those contain ill not say it. There are some natural ingredients. Hostess is nearing a sale to jm smuckers which could be f worth4 billion. They survived the deal with general mills. Hostess went through two bankruptcies. A Profit Group Bought the com company. Hostess returned to the Public Markets in 2016. We have all date on the story we told you last week. Ro Robert Isaacson posted last night over the description that elon musk secretly told his engineers to turn off starlink coverage within 100 yards of the crimea coast so they could not attack the russian fleet. He tweeted to clarify. The ukrainian coverage was enabled to crimea. It was not. They asked musk to enable it for the drone attack on the russian fleet. Musk did not enable it because he thought it would create a major war. Musk retweeted it. Much appreciated. It is different than if i refused to act upon the request over the decision to thwart ukraine. Walter will be joining us tomorrow to talk about the book which is getting lots of headlines. We said that on friday. On friday, elon had tweeted that it was never turned on in the first place. They did not ask him to turn it off because it was never turned on. He said that on the show. Walter isaacson acknowledging that. The other piece that is important in this is elon musk, to his credit, decided actually in large part because of the power he had in this circumstance that he didnt want this power in the future. He is building a separate version of starlink for the u. S. Government that will be controlled by the u. S. Government so he will sell that and the government will make those choices. Those are the choices the government has always made. It is impossible for a single individual. It is tis true to his credit. We will see walter tomorrow. In the meantime, a big price target upgrade from tesla from Morgan Stanley. The super computer effort dojo saying it can add up to 5 billion to the tesla enterprise value. That stock up 6 this morning at 262. And Novak Djokovic won the u. S. Open mens final yesterday. Defeating Daniil Medvedev in straight sets. It was his 24th grand slam title and fourth u. S. Open title. On saturday, we saw coco gauff win the womens open. It was awesome. You see brad . His fingernails were down to here watching. Brad gilbert. Gauff has one five singles titles, but this was her first title in the grand slam. Both matches were amazing. Star studded. Im surprised you werent there. I was watching on tv. Leo and nicole and keith. It was great. It was great to watch her win. Didnt you love that . I did. Her opponent hits the ball really hard. She is the fastest and greatest defender. She likes to play offense. She did in the last couple sets after losing the first one. I was worried. You could see brad was a little worried. Yesterday, medvedev, did you see it afterwards . He is a classy dude. I really like him a lot. I felt bad for his wife. It was his anniversary. He won two years ago on the same day two years ago. I thought djokovic was a classy guy. I would have thrown the game if i had known it was your anniversary. He also said, happy anniversary. Im not saying that as a slam. Of course, he had the mamba. That was his 24th tournament. He and kobe were close. I cant believe Novak Djokovic needed someone to give him the winning mentality. He has the alltime mental aspect. Kobe bryant may be the best ive ever seen. How he talked about the mental toughness. Maybe it added to what djokovic or mcenroe is back. I didnt need another four hours of whoever the guy is. He is okay. Mcenroe is great, obviously. He is ready to call novak the g. O. A. T. He loves federer. His idol was rod laver. No one is close to this guy. When we come back, it is a busy week for inflation data and ecb decision and high profile hearing on capitol hill with big names. We have the with squawk planner next. We have an interview with Wally Adeyemo. He will join us at 8 00 a. M. Eastern time. You are watching squawk box and this is cnbc. Youn announcer this cnbc program is sponsored by baird. Visit bairddifference. Com. I watched my mother go through being a single mom. At the end of the day, my mom raised three children, including myself. And so once the client knew that she was heard. We were able to help her move forward. Your client wont care how much you know until they know how much you care. fan 1 there ya go thats what im talkin about until they know how much you care. josh allen is this your plan to watch the game today . hero fan uh, yea. I have to watch my neighbors nfl sunday ticket. josh allen its not your best plan. But you know what is . Myplan from verizon. Switch now and theyll give you nfl sunday ticket from youtubetv, on them. hero fan this plan is amazing josh allen another amazing plan, backing away from here very slowly. fan 1 that was josh allen. fan 2 mmhm. vo football season is here. Get nfl sunday ticket from youtubetv on us. A 449 value. Plus, get a free 5g phone. Only on verizon. Wow, you get to watch all your favorite stuff. 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. Every business thats why comcast business de is launching theal. Mobile made free event. With our business internet, new and existing customers can get one year of unlimited mobile for free. Its our best internet. Powered by the next generation 10g network and with 99. 9 reliability. Plus one line of free mobile for an entire year. Its the mobile made free eventhappening now. Get started for just 49. 99 a month. Plus, ask how to get one free line of unlimited mobile. Comcast business, powering possibilities. On this weeks squawk planner, we have key inflation data. We have the Consumer Price index on wednesday. That is followed by retail sales on thursday. We will get import and export prices on friday. Also on the calendar, apple is holding an event at 1 00 p. M. Tomorrow to unveil the latest iphone models. On capitol hill, they will look at Artificial Intelligence. Among those scheduled to attend the closeddoor meeting is elon musk and satya nadella. On thursday, the latest Interest Rate decision comes from the European Central bank. It will be released at 8 15 a. M. Eastern time. That will be followed by the conference by christine lagarde. Auto workers will be in focus thursday night and friday morning. At midnight is when the contract with the big three automakers expires. You could see a strike at the least one of those automakers if there is no deal in the next few days. By the way, they are far apart at this point. Joining us now is sylvia jablonski. Sylvia, the big number is cpi and ppi. Looking at the Inflation Numbers will tell us what we will expect from the fed. How much is riding on that . I think so. Good morning, becky. A lot is riding on it in the shortterm market and how it reacts to it. Do we have a pull back from last week or do we resume the rally from the first half of the year . I think the Bigger Picture doesnt matter what happens in one particular read. We know inflation is coming down. It has come down quite significantly. If we keep going in that direction and the economy is holding up, overall, it is not as big of an issue as months prior. Do you think the fed will likely be sitting on its hands or they act in november if they see more trouble signs pop up . Are they happy at the moment . I think the fed is likely to sit on their hands and take in the data they see in the coming months and see where that gets us. I think they are likely to hold rates higher for longer than we anticipated. I dont anticipate major increase to the rate hike intentions. What the fed does is important to the future of the market. I think we are set up to have a rally to the end of the year. What can turn that around is the fed unexpectedly raising rates and deciding inflation is stickier than they hoped it would be. Lets talk about the other he ve events this week. Uaw. Whether i heard earlier is if they go on strike for ten days at the big three, that would be enough to send michigan into recession. Less supply on the markets would bring prices back up for cars after they have been coming down. This is important after the inflationary read. We have oil prices which are higher, too. Could Something Like that extended strike be the issue that pushes all the way back through and changes the feds mind . I think its a storm that can certainly brew and turn into a disaster. It is interesting to see what happens with that. I would flip that and think more about what that could mean in terms of electric vehicle demand and electric vehicle production. You know, it is interesting to see what happens with the prices of oil becoming more expensive and imp mpacting the price of vehicles and supply and demand issues. You may see car buyers look at evs where you dont have the is issues. Sylvia, what are you telling investors . August looked to be a rough month. Things ended okay in august. We had a down week for the nasdaq last week. Futures are indicated sharply higher across the board. I think overall broad based dollar cost average, you get the ride with the rally toward the end of the year. I love the ev trade value. The upgrade on Morgan Stanley that we talked about earlier in the show. Dojo with tesla. The top five electric vehicle makers are set to rally in the next for months. That is a 5to10 year trade. I think that is a great opportunity right now for investors to get in. Sylvia, thank you for being with us today. Thank you. Have a great day. Coming up, Meta Platforms is reportedly ramping up the Artificial Intelligence plans. Details after the break. Later this hour, an update on disneys dispute with charter over cable fees after a busy weekend of sports. Wow. Matt is so young. Sports that spectrum customers could not watch. Some sports i wish i had been unable to watch if you are a giants fan or bengals finance. 55 tmillion a year. Burrow. Neither team could catch a ps. As we will talk to puck news matt belloni when squawk box comes back. What do you see on the horizon . Uncertainty . Or opportunity. Whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined Risk Management are needed most. Drawing on deep expertise across the worlds public and private markets in pursuit of longterm returns. Pgim. Our investments shape tomorrow today. sfx people cheering sfx Stock Exchange bell ringing sfx people celebrating sfx people celebrating sfx Stock Exchange bell ringing what do you get from the Morgan StanleyClient Experience . Listening more than talking, and a personalized plan to guide you through a changing world. We have news just out. Instacarts ipo is happening now. Leslie picker has the details. Reporter andrew, it feels like we have been talking about this for years. Instacart kickingo off the ipo today. The Company Plans to market share between 26 to 28 a piece. That implies the valuation as high as 1. 3 billion which includes restricted stock units in the share cart. That is a quarter of the 39 billion valuation from two years ago. It is below the valuation from the recent round at the end of 2022. A more conservative the valuation is a sign of the Uncertain Times for Companies Looking to go public. Instacart said in may of 2022 it filed for an offering, but punted the offering as Tech Companies sold off. A. R. M. Is planning a smaller ipo than it originally considered. Instacart intends to sell shares in the i ppo in 16 16 million e high end. Investors indicated they plan to purchase shares up to 400 million total. Pepsi has a private placement in the current offering. It will trade on the nasdaq and is expected to start trading next week. Guys. Leslie, in terms of the scale down in the offering, the question is what do the companys sales look like and how sustainable is it and what is the margin . What is your read on how investors are reading that reporter investors i spoken with since it became public, they were pleased with 31 of top line growth for the first half of the year. This is a profitable company. The one concern i have been able to pick up and speaking with investors is the gross transaction volume value is 4 higher during that period. They would like to see that more in pace with revenue. The reason revenue was higher is because they were diffiversifyi into advertising. That is why you see a bigger pick up on the income statement than with total gross sales. Leslie, thank you. Time for the executive edge. Meta is looking to ramp up the Artificial Intelligence efforts. According to the wall street journal, the company is working on the a. I. System as powerful as the most advanced model offered by open a. I. The planned system would help other companies build services to build sophisticated texts and analysis and other ovfferings. This is the part of the Mark Zuckerberg push to establish meta as a major push in Artificial Intelligence. For some reason, this makes me happy. Dont you want everybody working on this in the best minds . We want to win in this country. I think, were hurdling toward an uncertain future with a. I. , but we may as well win. Guys at met a have money and minds and innovation. They are planning to do it differently. A question if it is better. One is an open source. He wants to have an open source approach and all of the others are effectively closed. Even open source a. I. . If you have open source a. I. , that means you or someone on the street can take that code and build their own a. I. We could argue it is great competition and opens the field, but it also opens up the field to do all sorts of nefarious things because you have access to such code. If you have that code to hack things, you could do that. If you want to use it for political speech or hate speech or other things, thats where it gets complicated. At the moment, the system that chatgpt put together and google put together and the system that so many other two or three others are closed and relatively controlled. You have to decide if you like the controlled version or the open versus. I like the open. Interesting. I dont know. Youll see. Well see. Theres an underlining current. We cant babysit everyone all the time. It will happen. I think from the major companies, hes really the only one doing it that way. We should find out if elon musks approach is open. I dont think so. The debate taking place is open a. I. Is a myth. When you ask technology makers, they will still have that control. It will be controlled by big companies. There is no such thing open source a. I. That is truly open source. That is a big article questioning these things. Right. We will talk more about this and more. President biden making headlines at the g20 smiumt over the weekend. Well talk about that after this quick break. Announcer executive edge is sponsored by at t business. Next level moments need the next level network. 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. There are some things that go better. Together. Burger and fries. Soup and salad. Thank you like your Workplace Benefits and retirement savings. With voya, considering all your financial choices together. Can help you make smarter decisions. For a more confident financial future. Hey, a tandem bicycle. You cant do that by yourself. Voya. Well planned. Well invested. Well protected. Ai has the power to generate solutions. But if its using unverified data, it could generate problems. Your business doesnt just need ai, it needs the right ai for your business. Introducing watsonx a platform designed to multiply output by tailoring ai to your needs. When you watsonx your business, you can train, tune and deploy ai, all with your trusted data. Lets create the right ai for your business. With watsonx. Ibm. Lets create. Good morning. Welcome back to squawk box. Were live from the Nasdaq Market site in times square. Futures are higher across the board. Dow up triple digits. 100 points. Nasdaq up triple digits up 102 right now. The s p is up 25. The economic downturn from china could bring