9AM HOUR: Nvidia Buys Hugging Face, Broadcom Falls While Snowflake Soars, Diesel and Pain at the Pump 9/3/26

0:00It's Jim Kramer here. You're listening to the opening bell of CMEC Squalk on the Street. Don't miss a minute of the action. Good Thursday morning. Welcome to Squalk on the Street. I'm Carl Kintzineo, a Jim Kramer at Post-Night of the New York Stock Exchange. David Fabre has the morning off. Summers not going quietly. Tons of news today from Nvidia buying hugging phase to Broadcom, Snowflake, Microsoft Costco, yields a lower equities up. As Waller does say, he would support a hold in September and then underlying inflation is better than core suggests. Although still stubborn, six week highs, Brent gets within three bucks of a hundred, diesel within a nickel of all time highs, 577. Our roadmap begins with Nvidia though, open source AI play, buying the AI platform hugging phase for nearly $13 billion. Broadcom's under pressure, soft Q4 guide does overshadow some strong growth on the outlook and a slew of earnings, HPE, 5 below PVH Campbell's, we will do our best to get to it all.

1:04Let's begin though with Nvidia confirming that it has agreed to acquire hugging phase. This is Jensen Wong with Becky last hour making the case for the deal on Squalkbox. Our fundamental goal is just to make sure that AI advances as quickly as possible and it's really, really important right now as the open models are really accelerating that we make sure that we provide hugging phase the platform to continue to scale and for the resource for them to scale and extend the open model ecosystem and community. Jim looks to close first half of next year and the coincidence of this announcement and Broadcom and that whole mess of custom versus open really getting interesting. Well look, I think that Jensen and ColiCrest CFL really been pushing people to understand this and someone like me, I was kindly worried nervous to it and they walked me through it and emphasized, you know, you really got to be open. The Chinese are doing very, very well. We have to blunt them, have it so that we have the best, even though they have good relationship

2:04to jump in and just say, we need our own open, we didn't know about hugging phase at the time, but I applaud this and I think what people have to do is say if AMD were announced they were buying hugging phase of Broadcom and announced they were buying hugging phase, we would send a video number. The other thing of it like that, it's a little asymmetrical, but I was really dead and they got it because if there was a big one and they lost to someone else, people would be saying, wow, they've lost their touch in the open and they really just, they don't have it, they don't, and you need open, you've got to have open. Do you think it's about defending yourself from customer demand that softens as others do the custom work? Okay, so I've been thinking about that. I was thinking, what would Jensen say if it would have been if I said, oh, it's just defensive. Yeah, to say it's all offensive and defensive. They have a lot of customers and they really have a great brand and the defenses they got it to be sure that nobody else catches them when it comes to open. I continue to be amazed of what Nvidia does. I think that they're incredible. Yes, I did what they have to say, buy back, I'm not going to reiterate that, but there's

3:04just an amazing grace to this man. I mean here, Jensen was at the crowd's story conference and he was fantastic with George Kurtz. His quarter was really good. Much better than I think people realize. This was another move that is really smart and I just feel like the stock is stalled and I think it's stalled because there are sellers everywhere and needs to mop up the selling, which is what Apple did. They mopped it up. Now I see that. I mean, obviously, oh my God, is there an economist curse like there was a one point? They haven't been great. It's not great, usually, historically. No, I didn't want to see that. No one knows what his source was apprentice there. But I like, look, I just think it's just another thing that was well explained by him about why he needed it. And I do think that opened is good. And I think that he wants everyone to be one Nvidia. This is just another $12.9 billion advance that makes it so it's more likely that they're going to be an Nvidia. Right. Doesn't it put Broadcom on some notice?

4:07I mean, and what about Neil Clouds? How did they compete with the source of silicon as the economist puts it? He's got great for Neil Cloud. He buys all the new. He has a stake in a lot of the new. Yes. Look, I want to say I got to go hard on this pro-com. I thought that this, I know that the next quarter is not going to be good. But I do think the AI revenue doubled again in fiscal year 2028 to 230 billion was the draw drop, draw drop statement. Memory did up next year to 15 billion. But this is one, I was talking to Ben Stoto and to Jeff Morris, who worked with me. This is now in Throbbing. It's in Throbbing or bust. So they can do it whenever he wants to do it with Hogan Fifth. They need in Throbbing to have a blockbuster. I feel. Yeah. And that I don't know. I mean, I think there's a lot. I was with someone last night who actually I think does know and said that in Throbbing could put up any number at once. They make so much money. They could actually say they're making a profit, they could put money back into growth.

5:09If we don't get that, then there's whole thing, everything that we're talking about could just be a greatest. Yes, that's the ongoing concern, Jim. That it is a genka tower of sorts. I agree with you. But I also think that anthropic is great. But you know, you keep it in me anthropic. People whisper, you know, that all their customers only one, there's like one customer that you keep hearing that. It's 99%. And it's always anthropic. It's always anthropic. And anthropic is by far in a market of stocks. It's the most important stock and it doesn't even trade. Yeah, you're referring to some, we get some data yesterday out of ramp. They do a lot of this. Just the concentration of revenue from ramp comment was incredible. It's like, wow. I mean, you wake up and see everyone with scrambling. And I say, who's ramp? I said, ramp is, that's who you use. Yes. Although I know that Brex was bought by Capital One and that was who you used to use. But I did find that pretty stark. I mean, anthropics is, is it too important?

6:11In some ways, yes. It's too important because it's a black box. I have the like management. I think that Dario is a real personality. He reminds me of, he's like a celebrity chef of our business. You probably can't wait to get your eyes on that. That's one, which would probably be, we talked about SpaceX being a clearing event, but this would help a lot too. Oh, yeah. No, we get good. If that thing looks good, then the shorts are going to have a hard time. And maybe we can go back to hard. Where I mean, remember, there was this, the mix keeps going on like I saw. I was saying, hey, why is service now up? Why is, what are the, what are the best stocks of the week? How is service worth up this morning? Well, Hynix is down. I said, oh my God, are we still trapped in that world where Hynix is down and said, yeah, we are. Yeah. I mean, look, I'm going back and forth with Benioff. Believe me, the only thing that's happening is Hynix. Hynix? Like, you, I woke up when I got back to, I mean, I got up at 315, did something a little later, and looking at Cosby and the next thing, I know, I was like, oh, go back to bed.

7:13Yeah. Just go back to bed, the Cosby's bed. You did say that Broadcom last night had an overtime save of sorts. Oh my God. This is what Hawke Tann said about AI chip demand on the call. Two, three demand was simply hot. And we're just getting started. We expect the need for compute infrastructure to inflect even more in 2027 and 2028. And they are all growing with XPUs to achieve superior performance, costs and power. Clearly Jim, got some price target increases. I got some price target cuts. Yes. Look, you got a price target cut. That's an invitation to your funeral in the conference call. I mean, as it is, people try to, by the way, you got to listen to his call, because it's hilarious. People try to put in 3 questions in one, he calls you out for that, no, it's just one of them.

8:13But there was, I questioned, it felt like bravado because this quarter was not beaten. It seemed hollow until he dropped that number. Jeff Marks was a great note. That's the late game save you talked about. But then by the time I got up, it was back to, you know, people just forgot him. It was right back to 353. And it's been trying to stay, you're trying to get a stake in the ground. 335, 355. But it was at 366 last night, right before Reachers started. Which you also wrote about this more. Reachers the greatest show on TV right now. And that's, I say that because it's some Philadelphia. And then because one of the seasons from six blocks away from my father with it, really impressive. It does bring us Jim to a broader conversation about data center. Front page of the Austin American statesman today is all about we want clean water. The journal page one quoting Bannon saying he hasn't seen an issue that unites disparate elements of American voters in his lifetime than this.

9:15Okay, so I make prediction. It will have no impact whatsoever. The demand for these is going to go on steadily. There's tremendous demand for electricity. I think even in New York, you'll see a big increase in orders. I think that all of this is put in theater and that it will mean nothing. It's much a due about, it's full sound and fury. It's McBeth signifying nothing. So you don't think what regulators don't have a say? I think that the demand for stuff is really powerful and the companies that are in the race to do these things will do the right thing. I mean, white worth is in a project. Thank you, RBN. Is it a project, a gigantic project in the Permian? It's working with GE, Vernova. And it's a long-term product project. And it's going to be a four-year project to be able to get Permian gas into electricity for a giant micro-swap plant. And these are four and five and six-year projects. And they're not going to be inflected.

10:15I love that. Something, it's either, you know, Lisa's head gesture at Jim, it's foundational. I said, I have no idea what you mean, but that sounds really scary. I know I'm saying as a fact that you're going to see more orders and more business in the data center regardless because it's two powerful, a long-term theme. And it isn't like, you know, let's say all the people who are on the scene right now in 2032, are they going to be able to fight it when, when, with that, that point, Dean of Palma Cormick is building junior colleges next to every single data center that Meta does because that's what's going to happen in this country. These companies are going to hear it and they're going to say, you know what, we've got unions and we're going to train people and we're going to have schools right next to it. And they're going to do this. It's going to be led by Meta because she is a, you, Manita, I'm not kidding, is what Data Palma Cormick everyone knows, she's, she's, she's an icon, she's an icon, and that's what's going to happen. So, anybody who's really fretting this story, and I don't know Steve Bann, I always wish

11:18him well, that anyone who's fretting this story is going to realize that it's just too powerful and the data center companies will find a way to make it so you don't pay electric bill and you get a lot of money and that's what's going to happen. So you think, you basically think the communities will be bought off with free stuff and that's going to turn the tide. Yes. From a voter stamp one. Yes. All right. I think that you can watch all these stories and the Washington Post piece that you tweeted was incredibly negative and in the end. It's just counting the number of state house bills. Oh no, absolutely. I'm just saying, I don't know what's going to happen. No, I'm saying, we're shocking to see how many. But I will say that I think Carl that in the end, exactly the Trinity that you just gave the bought off Trinity will prevail. These projects are, you're building right now for ordering 2032 and you can't not order because the grid is bad. We can't have this stuff. It's not powerful. The grid can't handle it and the companies have heard the thunder.

12:19It's a separate best since thunder. Well, it is remarkable just how much the G20 was turned into a commercial for data center. It's practically no negative discussion. You mentioned that gas jam. We're back to three bucks. That's definitely an ascended trend. Yeah, we do have a lot of trap in that gas that's coming out of the Permian that I think it's going to be good. Permian is still being the leverage point. I still think that I was always surprised that other than the Southeast Asian, we're still not getting any orders. But it's funny. These things take so long to the big natural gas plants, the liquefied natural gas that you just don't see. They don't come on every three months. They come on every six, maybe year and a half. So I'm not worried. There's a lot of natural gas that's being drilled for here. I'm working concerned about doing this cut to get them in cases. They're using oil. Yeah. I'll tell you, some of the refinery utilization data that we got, they are going full out. And yet, what happened? So you go full out and all we care about is raising numbers, Valero, raising numbers,

13:21marathon, 52 week highs yesterday. Well, they're just unbelievable. You know, here I talk a really piper. Did it? I talk a real good game about these, but I did not own anything for the child. It's just why? Because there was a 20 year period where you made no money. 20 years. 20 years where you would say, how's Valero doing? You know, it was like, how is Valero doing? Well, I pay two, so it's a five out of a layer. You did not make money in the refineries. And then, suddenly, they came on and they've been the best stocks in the season. They're incredible runs. We're going to talk more about Matt Gas and Diesel and AAA gas back to four, four, three, four, four, four. $14, and that really matters. And I think we know what Waller's thinking and how important it is. It's not apparelist moment, but it's not a great moment. Yeah, we'll talk about how that's folding into retail with Costco comps last night. Take a look at the pre market, equities to grieving as some size of relief after those Waller comments about a potential hold in September and rates are lower across the curve. Stay with us.

14:22Mentioning energy this morning, crude oil prices are rising, including Brent and Fresh six week highs as the U.S. Iran conflict enters day 190. Diesel did hit a four-year high as war strain global supplies. We mentioned AAA now 414 a year ago 319 gym. We're in hurricane season. We mentioned refinery maintenance season. Where's the chatter that what if China starts buying again? Oh I don't know I mean I think I still think the China's got oil left but you've been hitting home diesel and I think that people just think diesel is an apricot. It's like maybe the average say these from the 90s but diesel. Diesel's industrial and diesel is at the backbone of inflation. We can't kill inflation if every single thing that's struck to your supermarket or restaurant is with the diesel truck and everything that everything it's sent is by diesel. I do feel that it's a certain point someone in the administration has to be able to say you know what look we got a Fisher-Cut-Bader because we're choking. We're choking. The American

15:25consumer with this diesel it's almost as if a lot of people didn't miscalculate it. They didn't know that the Russian diesel died. That's and that's understandable but boy I mean that's the fuel for industry and industry is having a tax put on it because of the war and we are paying the tax but there's by the time because the consumer is the one who has to bear it and it's more than the tariffs. Your point's so good Jim we actually built the chart. This is looking at diesel versus Brent and you can see we kind of knew this was going to happen. This convexity the longer this last to Jim but diesel in the in the light blue on the top. But I didn't mean but look we had the great news from Venezuela yesterday and Chris writes to in a great job. Hey by the way Brian solvers to a great job. They really. I was incredible. I was incredible. Although the journal today not a quick Venezuela. No Venezuela is a long time and I you know Mike Worth is so not given to hyperbole that it's terrific. It's not in the it's not in the equation basically it's not but what is in the

16:26equation is we can't just flick a switch on this diesel and diesel you're worried about a qual or once to see inflation it's going to be from diesel. Yeah great piece on Bloomberg today looking at Chevron's sort of stubbornness in Venezuela sort of just slogging it out through all the tough years that's the only reason this thing was possible. That's my part of the bike where this is the life for man but he's a patient man and he just said listen he's a long long term guy remember when I was fishing with him it's not about Francis about money chip okay when I was fishing with him I said how do you do it? He said doesn't ever get old. And he said I get used to be in tire. Yes and that's what he does he is a tire. In that industry Jim if you don't have a long view and are willing to deal in all kinds of muck. Well look remember he called Governor News and twice saying listen really don't want to leave California but Newsom wouldn't take this call

17:27which I thought was really a terrible thing. You got a call to see your Chevron. Chevron's been there forever but Mike Worth has the patient look he's in Leviathan which is this area in the big field next to Israel and the politics are just so toxic. Doesn't matter he's there he's doing that and he does it with such a light touch. He's a brilliant man who is just a kind man and he is he's the one that can handle we're fishing five miles off of Ben as well and everyone's scared death because they're allowed to shoot you five miles away. And he said that because the fish were the fish were so powerful they were pulling us to bed as well but Mike's just the life. I just wish everyone can meet him you'd have such a different view about a whole industry if you could just spend an afternoon with Mike. It is a different skill set in those long cycle industries. We'll get Kramer's Mad Dash on this Thursday countdown to the opening bell get ready for jobs numbered tomorrow stick with us. Contact today there's data dogs strategy crowd strike we are

18:32watching snow we'll get to that which is Jim. Oh that's going to put you back almost five years hot. Street art did quite a job last night and it's just a very easy what promise mommy it's just a very easy way to get a consumption model get on the cloud was great for a cloud and now it's a great for AI and he did a fantastic job on the conference was that a fantastic job at French Slum and pick chip. Yes one of my heroes. Yes. What a great choice. He's just remarkable. He carries himself very you know he can pour himself so humbly. I love that. We're going to get to snow and what it means for software opening bell in about five minutes. Don't forget you can catch us anywhere anytime just listen to and follow the squawk on the street opening bell podcast. Kramer's Mad Dash we count down to the bell. Oh okay I'm talking about Campbell's household name everybody knows it you're being labeled for a more protein in some of those soups. It's bad quarter okay it's bad quarter and they're slashing the dividend and I want to introduce people with cons of what a bad quarter means and you have these things called DAX they come out and they always have key messages and usually they're really upbeat they pull

19:37things here Q4 fiscal year 26 key message Q4 performance reflected sustain top line softness and inflation driven margin challenges and it just gets worse from there there's just frankly the page after page of negative numbers. Reos was a good buy. We had consistent strong performance but oh my gosh. Carl the snap business is bad. The soup business but I don't even know what to say. Yeah I mean they're there they're closing plants they're laying off workers they see organic down two to four for the year okay down two to four there are numbers in this thing that make me feel like that this is a brand that should have just gone away and yet we all know it we all know Campbell's and I think that everyone feels that there's I mean snack consumption dollar consumption of five point minus five point one organic themselves minus six volume mix that minus six I mean see think up these numbers see this 20 year. Yeah this is just I mean I remember when the Durant's family owned that I thought they were going to sell it and they never did this is this

20:39is a nightmare this is a nightmare situation. If that weren't enough on consumer gym Tyson down six pre-market they do cut the guide on this collapse and beef keeps coming back to beef. Yeah you would have thought a lot of people buying that stuff and the idea is that people want protein if they want protein go have that big Starbucks coffee. I've got to tell you I think Brian Brian Nichol I got the pumpkin spice and was the best he knows how to do these a limited time law person learning it young he's gonna like yeah let's get the opening belt here at the big board on Wall Street the synergy holding company temper I like them very much and a tough tough man they got in California this week that kind of popular this like from Pacific gas and larger but these guys are more Texas that's shipboard he's just a person here on mine so a lot of great things let's hope that the legislature comes to the census. Yeah. Anthony Azdaq in Times Square of Washington Hill Therapeutics focused on unmet needs in

21:42oncology and autoimmune disorders recent IPO at C. Bowen Chicago it's Fintech TV doing the honors gym as well we've reclaimed. Fintech reclaimed 7700 here this morning. You know Fintech I have so far on tonight and you look at XYZ and then you know you listen to a firm and one after another they're all good but one after they all seem stuck versus the traditional bites which you're been moving up and I look at these the Fintech and I think people to say yeah they're expensive now I think the firm is my part of the best firm had an amazing quarter and the stock went up 10 and then gave it up and I was I was shocked as I like to firm far yeah that gap definitely got filled Black Rock did have a piece last night looking at the beige book in which they do argue that some consumers are trading down and they are relying more on BNPL credit cards BNPL that's just you know right right a firm I'll have to tell you if you want to know what what trading down looks

22:44like in a positive way you just look at what Winnie Park has done at five below still one more amazing quarter now that's both Dollar Tree and most particularly Dollar Gen of Hat good numbers but this is an extraordinary talent they went from she went from first cleaning up the shrink to then working literally every foot of the store down to the back and I has made it quite an exciting place that she's a very good executive unsung yeah I do want to get you on last four months of Costco cops May 8 June 7 July 6 and then August last night we got five four Jim this wasn't $1,100 name a couple of months ago this anything it had the curse being 49 times earnings which is the level that that delayed Charlie Muggey's that you can't pay for anything now I have to tell you that I'm beginning to wonder whether this is the Costco old I like going to Costco very much a lot of we we're not seeing the reups of these people who buy their cards online we know what's in the

23:46New Year's Eve business I don't want it to be a generational thing where my generation is Costco and the newer generations don't look at it like that but but if we were talking about Walmart right now Walmart is down pretty badly too I would guard Costco's great value I'm just wondering whether the great value is in these dollar stores yet I'd go to dollar stores again I'm going to reiterate they shrink their packages so you think you're getting a good deal you're back to your dollar fifty dollar tree can I went through a nest these crunch boxes that when I was watching and I think I was through with it to read before even the first fight I mean you know that means it's like that means it's seven minutes in I'm done that there's the package the shrink package there's a no go but yes Costco I've owned it for the trust forever it's just not it's it's just feels like it's not the Costco old I don't know when when um Richard Glanty stepped down that was the tie was the F.O. you see a vote from when 35 years I'm

24:47just worried it seems to have lost the you know it's typical because it's retail so you can't say no job but I just don't feel they got to resonate more with young people they just have to do we've been talking about shares shifts all over the place target Walmart T.J.X. Ross right? T.J.X has been I was a 52 week long yesterday T.J.X. I bet just down again now we own T.J.X this isn't only about Costco T.J.X. for oh it's actually I think Seacon business is going to take that price that believe me it already hit a low one three one T.J.X. is a very good company something went wrong they admitted it was a horrible conve school at a horrible where they basically just did listen we totally screwed up the good news is that they didn't screw up on the home goods the bad news is the flagship one we have right over here was two percent when I mean Ross ran circles around right they have to make a comeback they have to make a comeback Costco is a little more long term I don't understand why younger people don't need who get online don't see be it should they I think you have to go to the stores though in order to recognize the greatest

25:49Costco but if you're not going to the store then you may not recognize it as much T.J. I found it unbelievable to stock sees me falling it all because when that conference call they said look we didn't have the merchandise it seemed like the day frankly had gotten cocky and I wonder whether Costco and T.J. are cocky because that is the kiss of death and retail moment you think that you know what you're doing are you kidding yes Jim you know what's green for the year sales force up 40% in a month you know I backbar did this we're talking about work that since 2000 and there were some dark moments yes there were dark moments and there were moments in the conference call where I just said listen Mark you know I photos filled bus ran this and this is not a good number and you kind of got it just you wait and he was right the numbers are really good and and I think dream force is going to be extraordinarily hot coming up extraordinarily good are you going I never miss dream force yes I'm bringing Lisa you

26:53are going to bring you she likes the lectures musical guests do we have any clues uh you're just moving there but remember my my my my wife's next to Matthew McCommie and uh you met Steve Nick from different I love great pictures and speak my see from T from T-Mobile she's that guy is so cool I mean I love that guy I said looking you know he's a writer too she's see birds are writer I said no like not the T-Mobile right you never know you're going to meet yes it's a dream force but he introduced this product on our show is the current AI product and it's really taken off and I think that that thinks trading it traded at nine times earnings at the bottom of wow look at it go that is I know Jim we talked about it when they printed just what the contribution from agent force you know when he brought back so much stuff I mean the amount of stock you bought back and you would you get off the desk and hit some hey your buddy your buddy at penny off he's like he's breaking the balance sheet I said look more penny off it wouldn't even

27:56know how to break the house although it's 30 I and Jim it's I think 40% above the 50 day uh I mean at what point would you ring some registers I can't I'm not sure mark and not uh by the way you know you meet Dario Amade and he says I gotta be interview me my friend Dario and I said Dario that great guy who had the Michelin spin in Italy the million no I don't answer I think he's from to Simpsons go old friend and I'm like he knows everyone he's a person who's known as being the most charitable guy in California I'm sure there others but they're you just see what Mark does he builds a hospital in Simpsons go and then Oakland says what are you doing and you're you just favor the rich in Simpsons okay I'll build a hospital in Oakland but this is his time because the product that he everyone left that is working yeah and it makes it so that you want to hire more people and therefore do more work it's a very ancient oriented body. That's been your thesis yes best best down name of the moment right behind Jim is Microsoft as we're now going to get Azure numbers and get some clarity there I wouldn't think you would

28:58reveal Azure numbers unless you could so that you're really not that dependent on open AI that's why I think that stock is up people are afraid to be too dependent on open AI because they think open AI is a little more fickle consumer a little less enterprise anthropic is enterprise it you know you listen to Jensen today you know they he's really amazing they want to be enterprise they want to help everybody they want to help enterprise a little consumer but if you're on Wall Street you really just want enterprise you're too worried about the consumer that well that's the rap Microsoft has a lot of enterprise so people feel oh clarity maybe they have some anthropic yes yes not all open AI yes Amy Wood fantastic see a full stock talking community HPE should be up not down seven which one I'm sorry HPE you know January I like Nuria I didn't think that was that bad everyone really just dumped it yeah I I wouldn't sell I don't want to sell that style I didn't think the quarter was all that bad I think there's nearly coming one I don't think he's on to it oh we are going to get him yeah nice he's

29:59generally pretty communicative yes I think he'll tell a very good story and you'll not in your regret selling it before you hear Nuri tell you the other the other good quarter gym uh that's selling off is Sienna we know this was an expensive name two eleven beats one seventy three all times are out for optical yeah yeah I mean yesterday optical was that go here was down momentum was down I mean people just say you know what optical no it doesn't cut it and I am quite surprised going back and forth people can't figure out why the world is turned on optical yeah and they like copper this was the future this name was six hundred and thirty seven in June yeah that's head toward the two four and split there uh I was I'm shocked at this I think this is great but no they're not they used to come on all the time and they were very communicative and they seemed to not be all that expressive these days Gary Smith was a guy when he was one of those guys who are baddy came one and it's a life of a guy we're talking about we talked about the turn of the century now but yes see Sienna uh corning uh momentum and coherent

31:01I had to lose that group I just think the the world's turn on them at a certain point I'm going to come back to because I think they're the future was this a a gentson remember we used to talk about the gents and copper versus well okay that's a great point because I got very ahead of gents and people thinking that there would be a fiber within cooler all that stuff yeah and gents is great people told me junior little head and one of the things that's great about us people is that they'll tell you if you're too far ahead like I was saying man they do great stuff in health and they would say well not yet we're not yet and then you rain in a little they they are I'm not saying that they play you it's just the opposite they they want you to be as smart as possible I think people should at home should know there are some companies that just when you get something wrong they laugh at you and then and then you crack yourself and then there are other companies that call you and say can I do some educator and and you say yeah please do yeah he said collect crashes schooled me you see if I've been schooled yes I've been schooled by the best of so you you don't want to sell CRM you don't want to sell you wouldn't sell HPE

32:05would you sell snow oh no you're kidding oh rama this is taking you back to rama swami is the man this I always deferred to a guy who brings us all family when he's on the show this guy is oh everyone's I'm staying this is ridiculous oh my guys street art is fantastic uh street art again totally in and he'll he will walk you through the uh and he's got some products to talk about they're really great yeah I I can't count and then selling it give us a five year on this name because this takes you back to the days of frank remember when it was a very hot new name yeah well I I had frank if you take a look at the bottom they go get that earlier when you look at the bottom he came on and I said uh frank I'm very concerned about the guidance and he said Jim he said one of the most sage like he's ever said to me he was Jim the guidance is the guidance I remember you you said this a few times and I said well uh okay I didn't know where to go

33:09where do you go the guides it was like kind of bill part cells yes off I'm back to the leaf yeah oh wait a little bell check in part cells there when he was running the dig but uh frank picked a great guy I remember when Frank picked him and I interviewed I was the first to interview a man it was in uh GTC at the video conference and I didn't think I wasn't sure where the guy was ready for prime time and then he walked through his vision which was a little bit of different vision for me but it's the right one and he's been spotted one he has been offering a non-seat based product wait wait the way he's spending it was like okay let's say you don't know whether you want to go uh uh well you don't want to go cloud then you're on prem we're the guy you can try it with us we're rent and you kind of rent the cloud and it was a great model and then it became kind of a meme stock lot of young people yes yes and then they got they got there were a couple rougher quarters but now it's it's a very smooth airplane so I don't want to leave it and I don't want to sell Salesforce because I don't I don't like to sell ahead and dream force it just doesn't work

34:12right um you know what's put together a nice few weeks Jim is Tesla we are going to get a cyber cab update today we believe in Austin um of course it has underperformed the S&P I think for five straight years yeah but at the same time if anyone owns it I don't plan it because when you I was out with someone who's a really great business person and I said what do you think about Elon Musk and he paused everyone pauses because there's certain aspects of him that they will follow you that's a kind word and then he said uh greatest business man of hard time and I think that that's why people are in SpaceX or they're in Tesla and I never blame or criticize anyone is in these stocks because the this man is it well ahead of everybody else in the way he thinks you know he's not my man I look I like I like Jensen and Tim was my fave uh I think it's very interesting people keep talking about well now now Apple's going to have a real visionary I'm in a holy cow okay can I just tell you that this this this vision if what do

35:15you have to do to be a visionary Tim Cook created products that are incredible they they're all amazing the guy was consistently the best of what he did I don't divide I don't envy turns I mean that's so great I think Tim Cook like like we said Cook might not have envied jobs uh but then look what Cook was able to actually the Apple does get downgraded today over Jeffries mostly because of the memory the memory costs oh my god I'm sending a lot of invites out today to their funeral you bet I am she's down great Apple I'm looking for your cap on take it when I take a video downway rather but back to Tesla journals got a nice piece on this Ford EV called the Fathom which if their targets are right could be one of the best selling EVs in the country I I adore Farley stocks moving up you gotta stop with the recalls that is top of the recalls you know I my Ford truck is I get more notes from Ford than I do almost anybody really wasn't the

36:17old tagline quality is job one well I look I I don't want to make fun of Jim of Farley because he's doing a really good job and I hope I wish the best for that but they still have some quality problems that they have to work for yeah I'll tell you what you know political did a great piece the other day on the F series where the transmissions are from Ontario the axles are from Michigan the engines are from Ohio or some mix of that it gets assembled in Ontario and it kind of brings to mind we we got to get Canada and the US back to it Ford I had a Ford Super Duty for 350 that I bought that thing was a monster no recalls there that was just incredible so I used one I bought that already had like 40,000 on it and and that was you know that's the days that you need I think look maybe this comes back but Ford has got to be Ford's a little big hat no cattle right now and take a look look at the chart of Ford versus GM that's the most telling thing you're going to see because Mary Barra quiet wing is doing better yeah I mean August sales for Ford yesterday

37:20were down 10 even though overall auto sales aren't bad I wanted to win so bad he's such a terrific guy yeah he's a packer fan not the lawn not a lion fan I think that's important because I want to take Amin Rauh first and I don't see anyone I want to take one pack but yeah when I first saw myself listen to choice playing fold out if you wanted to more week dude he said one more week oh my we play a commander's store that's a guy Josh that's Josh he was all over our network early session highs here douse up 450 let's get some services PMI from Rick Santelli morning Rick good morning curl indeed these are the August final reads on the S&P service sector and composite PMIs will have ISM atop of the hour 56.8 was our mid month look it moves down to 56.5 but that's still the best level going all the way back to Deese of 24 and if we look at the composite 56 was the last look it remains at 56 and that is the best since March of 22 so even

38:24though we saw the service side downgraded just three tenths of a percent these are still very strong numbers I look forward to seeing if the ISM services remained strong as well a couple of quick details we're seeing a bull steepening a bull steepening in the treasury complex and that means that yields are dropping faster in the short end then they are in the long end all maturity yields are lower on the day waller from the Fed talking at 830 really made a big difference we now see Fed fund future probabilities at the CME under 50% for the set meeting what a place to end right squawk on a street return after a short break it's about meta and 600 being resistance support Jim no one wants to say it but that was a huge victory for me on that ball suit I know I'm out there I don't care there were people within highest in these organizations these companies the total is going to be a hundred bill it looks like it's going to be max 18 people don't

39:25understand that was the turning point and all these different people come on say hey listen you know that was a big loss yep oh you kidding me the turning general could have buried them now individual plaintiffs won't even go it's over yeah well we'll see they on the remedies whether not their rivals join them on some of these new restrictions well we can't see what they do but I think that that was a huge win for meta people don't want to talk about it because you never want to say hey we beat the kids you don't want it yeah my man daughter was working with suicidal people it was always it was always these sites that yes they had to stop uh right now here's pretty much pinned to the 200 day we'll keep an eye on it we'll get stopped trading with Jim in a minute big win let's get to jamming stop trading it there's been a stock that throughout this period has really held up very well congratulations flat ten of its a robin of markets and I have to tell you Carl the younger people now a lot of them a little too crypto oriented maybe too option oriented but younger people are our own in stocks and robin just keeps growing and growing I have so far on tonight they keep growing and growing and they're growing with this great 21 to 30

40:29cohort I wish those people spent a little more time watching some of the things we talk about be a little more educated a little less more day trading but they're wow they're invested now I think people should be saluting that's one of the big reasons why I think we continue to manage to be able to stay higher a lot of people think you can some of the hood upgrades or positive notes this week had just been about the sheer amount of assets that users are sitting on and it gives them all kinds of optionality and by the way no longer tied to Bitcoin or crypto no not at all and that's why I like they're more and more stock they got a good research part by the way the 401k piece this morning about the million there's fidelity and look I think there's a lot of people doing things right and you just every time you get really negative about the market remember what matters is supply and demand and the money coming in that is by road by in with indices or buying individual stocks or buying ETFs is extraordinary and no one's really accounting for that they're just thinking it's the same old pool but it's not of course we're going to need it if you have a problem comes public yes while on days like today where yields give you the room

41:33you can see what happens yeah when when you have to give the room people want to buy so badly and they look they're they're buying stocks they written off and to it have been written off not that long though Tesla is not doing so well but Coinbase Principal Financial that's one new one that's going up if they're buying Campbell's then we know that the things are bad put on again this post-bone forever Jim having good weekend thank you thank you bad money six p.m. Eastern time tonight when we return speaking of buying snowflake getting back to 2021 highs on this quarterly beat and guide we'll get to that with a Dow up 440 you've been listening to the opening bell on CNBC's squawk on the street all opinions expressed by squawk on the street participants are solely their opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by them on television radio internet or another medium you should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of his opinion such opinions are

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