friday. >> yeah! >> fri-yea and july 28th. i don't know if that's a yeah. 2023 i don't know if that's a yeah either time's flying. "squawk box" begins right now. good morning bp welcome to "squawk box" here on cnbc. live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. it's a friday. it's the summer. we're already all a little punchy here we go let's look at u.s. equity futures at this hour you see now there are some green arrows and significant advances. nasdaq indicated up by about 132. dow up by 95 the s&p up by 22 again, dow indicated up by almost 100 points.

saw big gains yesterday morning. didn't last through the session. dow was on track to extend its winning streak to a record tying 14th session longest going back to the 1800s -- but it lost steam later in the day and actually closed lower. oh, well all good things come to an end. >> and big reverse on the nasdaq, really up. >> after meta. >> down 77 up today both kind of rebounding. we'll see. it's early. >> in the green again this morning. what's happening with treasury yields you see right now it looks like the ten year is yielding -- just below 4% 3.975% yield's picking up two years 4.87 overnight bank of japan loosened control over its yield curve offering to purchase ten-year government bonds at 1% effectively expanding its tolerance range by 50 basis points this is a big surprise the first major policy change since the new central bank

governor took control in april and early commentary on this, that the yen might be a lot more volatile as a result >> meantime, talk about today's squawk planner earnings on deck full results from chevron. that's after a preannounced number on sunday hearing from exxon/mobil and procter & gamble bring you interviews ceos of both companies in the seven hour. and on the agenda, a fed inflation gauge due at 8:30 a.m. set your alarm, we should say. probably watching now. get the june report on personal income and spending. forecasters expecting to see inflation rise by 0.2 percents from prior month at noon eastern time, ecb publishing its results of the latest round of european bank stress tests all quite important. >> and in the latest edition of how good it can feel when you stop hitting your head against the wall, intel shares js jumpi.

return to profitability after two record losses. looking for another loss posting earnings of 13 cents a share. expectations for a 3-cent loss revenues 12ds.9 billion beat estimates of $12.1 billion it was above last quarter. sequentially above 15% below last year. current quarter guidance beating also wall street expectations. sequentially flat. analyst call ceo pat gelsinger, seeing weakness in all segments of its business through the year-end server chip sales won't recover until the fourth quarter the finance chief saying part of this reason, progress the company made towards slashingses 3 billion in costs this year pc sales were down, but not down like they were in previous -- one quarter after the pandemic,

which stimulated pc sales. down like 30%, pc sales. this time down like 15% or something. in an interview with jon fortt, intel ceo pat gelsinger laid out his vision for ai in that boom. >> we see the ai, it's not a particular architecture, particular chip. ai is a workload if you think about the highest-end training, jon, talking about tens of mega watts that run for months. then you say, hey, going to infuse ai into the pc. that's going to be tens of watts and needs to be within seconds then you're going to have ai that fits in your hearing aid that's going to be tens of microwatts, right? needs to be instantaneous. ai become as workload across every one of these applications, and will be a driver of new use cases. what we mean when we say da mach

tra tiz ai make is pervasive across all different use cases and a pouberful driver of semiconductor demand going through the rest of the decade. >> of course, jon fortt said, on the other hand, outlined all problems with that strategy. gelsinger had -- >> switching his pen, right hand to the left, jon did not do that much more on that interview throughout the morning. we are also watching shares of ford this morning the automaker reported adjusted earnings of 72 cents a share a beat analysts looking for 55 cents. automotive revenue of 42.4 billion dollars beat estimate. for $40.4 billion. and ford raised its full-year earnings forecast a range between $11 billion and $12 billion up from $9 billion to $11 billion. didn't help the stock. stock off by 1.8%. shares of roku sharply higher streaming devicemaker lost 76

cents per share in q2. not as bad at 1.26 loss analysts expected revenue $847 billion beating expectations boosted by revenue from advertising and licensing business, which actually is the business it's not really the device business meantime, looking at that stock up close to 10% this morning solar times on the move. first solar rising after the revenue coming in above analysts expectations and energying beating estimates and revenue $711 million fell short of estimates by $11 million look at that stock down about 13, close to 14% on the back of that news. a bit of mixed story here. >> looking for reasons for ford to be down even after raising guidance. >> ev. >> ev. yeah weakness in electric vehicles and recalling about 870,000 of their ford f-150 trucks. made between '20, '21, '23,

unexpected engagement of the parking brake. producing more than demand is asking for. >> that, too, waffle house charging stations. coming around to that. waffle house, taco bell. the -- >> the double whammy both -- >> white castle? >> can't go wrong. i can give you a -- a list who's who. >> domino's. >> coming up other side of this talking about pharma economy raising full-year guidance after an earnings beat although sales fell short of estimates. joining us with an exclusive after this 7:00 hour, earnings interviews with ceos of procter & gamble and exxon/mobil after those companies report. you're watching "squawk box," and this is cnbc.

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get started for just $49.99 a month. plus, ask how to get one free line of unlimited mobile. comcast business, powering possibilities. welcome back to "squawk box. sanofi beating estimates exclusive interview paul hudson. good morning, paul you did raise your expectations. i want to ask you about that,

understand what you think happened in the quarter, but also get your reaction to where the market is based on the back of that news, because i would have thought the market would have liked it, and right now there's still work to be done here, because stock's up a little bit. >> well, listen. good morning,able thank you. great to be with you, andrew we've been on a great run, in fact, since the beginning of the year one of the stocks to make the most progress. so we'll get our chance to explain our story later on today but very excited about what's going on very excited about the launches that we're doing and we're get to a steady state in terms of r & d, readouts and overall performance. >> you have opportunity now to sorta little differently what do you think they're missing? >> we have three launches in flight shared data this morning to say rsv, recently as last week, approved by fda.

we have an opportunity to perhaps prevent almost 100,000 newborns going into intensive care setting in the rsv season later and know that's a really difficult thing for parents and for infants alike. we launched a drug to try to help people on a weekly basis get back to normal way of life we launched another, type i diabetes delaying need for insulin several years once you're diagnosed and started treatment. in fact, data earlier this year on copd kills over 150,000 americans every single year. in a new phase a new chapter, if you like new steady state of bringing remarkable innovation forward and proud of the work that everybody's doing. underneath that, our underlying growth is single high digit. take away the one-offs and things, runs an increasingly

more efficient business delivering first in class, best in class science and sometimes takes time to catch up we're very closed where we are >> it has been a remarkable run and you should get credit for that i was going to ask about one-offs maybe you can speak to this. there's a one-off, looks like a one-off, 400 million euros, expected on covid 9 vaccine revenues in the second half of the year with no further sales expected is that right? can you explain what that piece means? >> that's right. you know, we played our part in the end in covid and brought a vaccine forward pap a very good vaccine and outstanding commitments delivered on delivered on all doses expected of us and, of course, need to make sure that figures in our financials everybody will benefit with the slight upgrade we have for the remainder of the year, and then back to business delivering on science, adopts ai and really advancing the organization. >> it's a broader question, and

i know you're now effectively out of the covid vaccine business, but do you think that vaccine business is over >> well, you know, it's hard for me to predict that, but i think, you know, they'll be a trailing number of cases for sure you know, we are really focusing on first in class, best in class science right now. let the other companies really worry about where that goes in terms of a market value, but, you know, what i would like to see is some enthusiasm amnd i think we're eing isn't vaccine literacy, understanding of protecting babies from rsv think about the number 600,000 babies will need some type of medical intervention at some point in this rsv season. we'd like to see the appetite and energy trying to protect those babies we think this is going to be the key, the key player in that market from as soon as september. >> what will that drug be priced at >> well, that's still a conversation, but i can tell you this -- we made a commitment to make it

an affordable, accessible price, to make sure that all infants can be protected this is something very important to us. we're very proud vaccine company over a very long time, and you know, for us, it has a tremendous safety profile, incredible advocacy up to almost 90% of babies protected from going into the hospital. so it's a big deal, but we'll price it as a vaccine and what we should do it's responsible and we believe we can really help a lot of newborns. >> what's your sense just what uptake on that drug will be -- i mentioned covid earlier, there's such a global debate about vaccines right now i think probably for the wrong, but some people have other views of that. and what you and other drugmakers will have to do to overcome that. >> well, all i can do is look at the data i can look at data high-quality data.

look at fda approval of the vaccine or rather the drug, antibody rsv and bring it forward at scale and at accessible price we're going to do that i seem to remember one of your own panel today had a chal with an rsv for one of their youngsters back in the day reality is simple. this is a huge unmet need. we believe appetite will be very strong no baby should be in an icu if it can be avoided. that's very difficult for parents and for the child. we're going to play a massive part in that and that's soon, right? just a couple months away. >> paul very much appreciate you joining us this morning and we wish you well with that drug and hope that it saves lives thank you so much for joining us. >> yeah. thank you. hope to see you again live at some point. >> you bet. coming up, boston tea party. parent company sam adams, getting a boost from its twisted tea brand.

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second quarter company the ceo said a strong fourth of july and the momentum in twisted tea helped offset challenges that they're seeing in hard seltzer, and you can see stock's up almost 10% just on twisted tea. tell me about it is that like long island iced tea or something >> original too sweet but light version is okay. it's -- you know -- just tastes like sweet tea but it's not super sweet. light version's a little -- >> but how much alcohol? >> not much. >> like beer >> more like a beer. like a -- >> not like, not even -- >> like 3% or 4%. >> like 1% >> that's why it's nice. low alcohol content. drink it, tastes like a tea but get a little loopy. >> depends what you're looking for. right? >> i like it because there's not a lot of alcohol. >> then you'd love, like, non-alcoholic beer. >> drink iced tea!

>> it has nothing. >> makes you a little, feeling loose. >> okay. we're moving on. >> the "wall street journal" -- >> loosened up not loose. >> i don't care! i don't care. >> the "wall street journal" -- >> not judging. >> "wall street journal" this morning. i want to hear what everybody thinks "wall street journal report"ing facebook removed content related to covid-19? response to pressure from the biden administration similar to what we heard about twitter. the "washingt "wall street jour" discussed july 2021 origin of the pandemic the white house wanted to control. facebook's vice president of content under pressure from the administration and others to do more the discussion took place three months ar facebook decided to stop banning posts whether it was man-made manufactured. telling the "journal" discussions aimed at promoting the adoption of vaccines and other public health goals.

think goes to what the court ruling was about in terms of, you know, what the administration or any, i don't know if any part of government, can or cannot tell a social media company about what they should publish and i'm still in the exact same place a month ago when the story first came out, which is -- >> so am i. >> you're exactly where you are. >> when was that letter? >> july 21 saying but some of the stuff much earlier than that. >> i think we knew, huge suspicions came out of the wuhan lab at that point. >> historically -- >> my point -- >> it's been, if this administration or any administration to me, total apolitical situation which is, no matter who you are if you want to call up a social media company, facebook wants to listen to the biden administration, that's on facebook on twitter on all of these people. >> it's like the government has all of this power to say there

can be consequences if you don't listen to them it's not like that with anything else. >> i say it and raise the pentagon papers raised so many others. >> "new york times" all on the same page. >> i know, but so many -- >> would you tell the in the in the how to -- >> "new york times" same -- >> pillared for taking same viewpoint you take, which is weird you can be so simpatico. >> my view moment i saw the story. >> it's here and -- because that's really cool, if you are able to, to frame -- >> i'm not framing, trust me not framing anything for anything this is for andrew ross sorkin all i'm saying is. >> huge, it's big. >> you have -- by the way true during the pandemic and true of all sorts of things. you have an administration had the trump administration by the way, people phone calls

from people in the trump administration and biden administration, in this building, telling people. >> not at the -- >> saying, hey, i wish you wouldn't, you guys weren't say that i wish you were saying that. this happens every single day in all ports of media know what? it's on the media -- it's on the media to decide what to do. >> get restriction of section 236, probably. >> 230. >> yeah. 230. mark a good boy. always a good boy. bottom line on this, too tried to do -- it's all -- well intentioned. i still -- >> you don't want your regulator. >> what the sanofi guy just said look at really clean data and see overwhelmingly the vaccines -- actually in dispute now. people are -- what trump said. asked trump, are you glad you, operation whatever the hell it was got the vaccine. he goes, i don't want to talk about. doesn't want to take a victory lap getting the vaccines out there, because guys like rfk jr.

so weird the way we're looking in hindsight at -- goes down in history vaccines saved a lot of people and probably ended the pandemic i see what they'retrying to try to do it but i still don't think it's a good idea wish we had known all the -- the evidence is gone where it came from. >> we think it should be illegal? in a world of free speech should it really be illegal for somebody. >> i want to see that stuff. i want to see the stuff i didn't see! that's my -- >> a question for you. so yesterday -- >> regulator to have the power. >> yesterday elon musk. >> yeah. >> effect lively connected lebrn james's son heart attack with a possibility it was related to a vaccine. >> right. >> irresponsible >> okay. >> got a guy challenging biden that said the wackiest stuff bar none, about almost every

subject and is getting -- rfk jr. said stuff -- take your pick said stuff so out there. >> of course, people saying we got alien bodies -- >> my view, i wish they didn't say those thing and weren'tage pla phied. people have the radioright to s they want to say. >> and why it should be taken down. >> that's on facebook. >> i also think almost public. the problem is, when you have a regulator, i understand both sides of this argument when you have a regulate here has that kind of power over you, ever had the government come up against you. >> scary. >> can you have somebody who -- is in charge of, you know, the senate finance committee go before them, some some of those guys asking for donations. >> 100%. the whole thing, the worst part we have now, goes back to money and government there's a complete corruption on the donation side. there's a complete corruption on the pressure that some of these

agencies are trying to put on either companies or individuals or all sorts of things. >> right make it try to go away. >> retribution -- >> pressure, no one's got more power than public unions. >> the strength media, so many examples instances, many examples, gone to different media organizations and pressure them to do things. >> can i ask you to stop talking about this for me, would you stop talking about this >> not for you. >> for the break, yes. >> okay. when we come back, exxon/mobil set to report. bring you the numbers soon as they cross the wires check out that stock now up by about 60 cents. plus an exclusive interview with the ceo darren woods at 7:30 a.m. eastern time don't miss it. "squawk box" will be right back. ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ )

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welcome back, everybody. exxon mobile out with numbers. earnings coming in at $1.94. that was below expectations of $2.01 a share. the company does talk about how earnings were highest they've seen in first quarter the last time they made this money, sorry, second quarter, 2011. that's when brent crude actually averaged $111. managed to earn much more money

on a lower base. i think brent closer to something like $80, $81 most recent quarter they've become more efficient but the number below what the street expected. lower natural gas realization and industry refining engines adversely impacted results on this saying the company remains on track to deliver $9 billion of structural cost savings by end of 2023 relative to what they did in 2019 accumulative structural cost savings to date, $8.3 billion. looking at cash flow from operations, $9.4 billion free cash flow $5 billion and that does include a network in capital impact of $3.6 billion driven by, they say, higher seasonal cash tax payments total earnings for the quarter $7.9 billion excluding items identified with additional european taxes on a

sector coming up 7:30 a.m., stock down, talking with the ceo big oil saw plunging profits this past quarter on slumping energy prices they are set to see relief as gasoline prices hit an eight-month high with national average at $3.73 a gallon oil prices up about $10 a barrel just in the last month, and joining us now to talk about that is the global head of energy analysis at opis and, tom, what's driving the higher prices >> higher crude oil. crude oil prices are up about 13% or 14% since june 30th, but also a lot of refineries that are coughing and wheezing. they're not really geared to run with 10 or 15 days of 100-degree temperatures in a row. so that's part of it, and gas prices are up about 30 cents diesel prices up about 30 cents

wholesale. easy to predict we're going particularly higher from here. >> what about demand in terms of driving season being here a strong economy, at least here in the united states >> becky, it's not gasoline demand in the united states. gasoline demand here is probably about 500,000 barrels a day or 5% or 10% lower from 2016 to '19. you're seeing much more efficient vehicles and some intrusion of electric vehicles but we're importing gasoline to latin america and as long as latin-american populations grow, our gulf refineries will be suppliers to that region. >> china's economy seeing weakness what impact has that had on global oil energy prices >> china is kind of the dog that didn't bark in all of this i think the chinese reopening trade has been largely very

disappointing. they were importing more crude oil in the last month or so, but most of the scholarship indicates they were importing more crude oil not because they needed it, because they wanted to build strategic inventory so i think their not going to be necessarily the driver for a lot of strong prices in the second half of the year i think it comes from the saudi cuts of a million barrels a day which are for july and august, and now the market seems to believe that they'll extend that into september >> russian exports have dropped, too. haven't they >> they have you know, you can't believe what you hear from russia, clearly. so they have dropped, but it's not clear whether they're dropping because buyers are refusing to take it or the sanctions are working. but, yeah. i mean, that's one of the reasons why in this quarter i think most of the people that follow oil believe that supply is going to be about 2 million barrels a day short of demand.

we're going to be depleting inventories within wintertime, perhaps. but for this quarter, supply is not enough to take care of demand >> tom, if you would have asked most people in the sector beginning of the year i don't think they could have said they anticipated oil prices would be as low as they have been $75, $76 was that just opec throwing everybody off? >> opec a big reason and the chinese reopening never lived up to the supply, and it was probably disingenuous to think they would be drive commodity prices higher across the gamut so i think that's so and i would stress one thing last year was an epic year for profits in oil business. this year pretty good, just not up to the par of the numbers that were off the charts in 2022. >> if you had to make a guess, it's trick toy do, but wti up or down from here

>> i think wti is stuck between about $70 and about $85 and that's the range we don't like ranges we like dynamic prices but i think that's probably what it would be you hear $100. probably take another opec consult of probably 1 million or 2 million barrels a day or some sort of fights in the midat least would do that. i don't think that's likely. >> consumers, prices at the pump, the expectation there will be relief in a month or two as refineries -- not going to stay this hot forever refineries getting back to producing? >> this is not the new normal. right now you're baking in probably a category 3 hurricane at least threatening gulf of mexico crude and refining, and in august prices tend to come down and the recipe for gasoline changes in about a month, and there's a lot of cheap hydro

carbons you can put into the recipe we'll see lower prices in the last 100 days of the year. >> what about ev may be producing more than people want. lofty goals, gm saying turning entire fleet electric by end of this decade. >> you know, that's -- >> what happens to prices as ev adoption picks up, or do you think that these expectations are a little too rosy? >> no. i think they're probably too rosy, but i think certainly we've seen highest gasoline demand in the united states than we've seen in our lifetime thankfully refiners, latin america is sucking up the additional gasoline. the question with evs, if you sell a million evs how much gasoline does it diminish? and that's an interesting hypothetical, because for a lot of people ev is the second vehicle used to fool around town so it's going to have an impact

and i think the circuit half of this decade in the united states we'll use a lot less gasoline. but refineries are okay because latin america is growing they don't have the ev adoption. they don't have the infrastructure, and we are the suppliers to the world. >> tom, thank you. >> thanks for having me. a lot more coming up on "squawk box" this morning. talking about an industry voice to benefit from heat waves in the u.s. and europe. pest control got that story next. reminder, get the best of "squawk box" on our daily podcast on your favorite podcast app and live anytime. we're coming right back.

welcome back futures bounced back a little from surprising down trend we saw yesterday, the 13-day streak ended for the dow based on some tweaking of interest rate regimes in japan today we're getting the nasdaq looks like on an all too basis the strongest. andrew meantime heat waves here and in europe. one sector seeing hot sales, wouldn't have thought about this pest control companies joining us with more. >> good morning. july shaping up to be hottest

month on record and as temperatures surge so, too, could pest populations from mosquitoes to ticks to ants. higher average temperatures paired with milder winters extend insect life cycles increase survival rates and shorten reproduction cycles meaning pest control companies are one area to watch. this is a highly fragmented market rent rent-a-kill and thousands of smaller players. bank of america recently initiated coverage with a buy rating calling the company resilient. 80% revenue total sales and points to margin expansion opportunities under new management plus, last year south the only u.s. region with positive domestic migration their higher temps mean demand for pest control roughly three times national average pest control could see boost a

demand. >> seen things line the lantern flies, bugs, called eating the -- >> spotted lantern flying, saw one yesterday. they've been a big problem here, too. so i guess that stuff moves around. >> and changing different types of species they have longer reproduction cycles we see multiple hatchings per summer and just -- >> yuck. >> and warmer terp temperatures changing everything. think about beetles, killing cotton trees out west because there aren't a number of days below freezing temperatures, they're thought killed all of these pests are now life cycles changing thanks to warmer weather. >> thank for the unique story. when i first saw we were doing a story on heat and what was the unexpected thing you didn't, thought air conditioning >> well, that's another area, hvac sales. >> right thank you. appreciate it. coming up, intel shares on the rise after the company returned to profitability.

digging through the report with an analyst next. reminder, watch or listen to us live anytime on the cnbc app. it's hard to run a business on your own. with shopify, you have everything you need to setup your online store, to connect with customers, and to bring your dream business to life. because when we work together, the future is bright. these days, your customers are not just down the hall. they're all over the world. so cute. it doesn't have to be lonely at the top. join the millions to finding success on their own terms. start your journey with a free trial today.

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one of those pests those pests! pippa just talked about messing up our shot. >> a fruit fly in the station here. >> that was in d.c wasn't it? i think -- maybe here. i don't know intel returning a profitability after two straight quarters of

losses also issuing a strong forecast jon fortt spoke to ceo pat gelsinger in the first interview after the company reported. >> it's a very good quarter beating a top, beating a bottom line, raising guide, for next quarter. just overall you the bottom line good quarter on financial discipline, market we exceeded across multiple lines of business, but in particular was the business where we saw the strongest beat. >> joining us for deeper analysis, vivek arya, bank of america's research analyst should people buy this stock here it's been tough for a number of years. i don't know whether you'd say the company lost its way, but it's not quite down 50% from recent highs, but almost nvidia is a trillion dollar company. amd has eclipsed intel's market

cap, qualcomm almost >> let's start by giving intel credit for executing on the cost reduction plan i think they've done that quite well they're executing on a manufacturing road map that's in progress and they are getting help from a pc business that is stabilizing its lows i think those are all the good things the challenge it still faces is that it's harder to now grow the business because the portfolio is just not aligned with parts of the semiconductor market. let's take traditional silver where a.i. is very dominant. it sells for about $20 when we go to an a.i. server, intel's contribution drops to low single digit percent

that's our main concern and the reason they're cautious is because intel's portfolio is too much geared towards pcs which is not a growing market their pipeline of less than a billion fails in comparison to nvidia which will do probably over 30 billion this year. we still don't think this is the time to take another look at intel stock, but they have stabilized the business at these levels growing it will prove to be far more difficult >> years ago the decision would have had to have been made to pivot from pcs someone always seems to eclipse old tech, more nimble. you wouldn't say they were asleep at the switch, but they certainly didn't anticipate the markets they should have been focusing on as well as they could have, is that fair to say?

>> they have faced a number of challenges the issue is that they are trying to tackle multiple problems at the same time. if you look at manufacturing and design, it's integrated into one company. but their competition is either doing manufacturing, so they're either focused on the manufacturing side or the decide side the manufacturing side is semiconductor but the design side is helping those companies focus much faster. that's the challenge intel faces, that they are trying to tackle two problems at the same time that is optimizing the model the second issue is when it comes to this brand new market of generative a.i., which is not a chip market. you have to simultaneously optimize hardware, software, silicon. you have to think of the data center as an all-in integrated mechanism. that's just not intel's expertise right now, because at

their heart they are really more of a chip company. that is something i think nvidia has executed on extremely well by coming together with a wholistic integrated approach of system silicon software switching expertise. that's why it's going to take intel time to catch up. >> what's the future of a company that is focused primarily on the pc and its fortunes are tied to pc sales? it's better than it was. obviously it's going to be tough to match the pandemic years for pc makers. where should the stock be? does it ever come back to growth >> yes half the business is a pc market definitely usage of pcs post covid has increased. so has the quality of these pcs.

i'm using my iphone a lot more than i used to, but the quality is much better, so the replacement cycles have stretched out. pc is a replacement market we think it's from 250 to 260 million units a year the other nuance about the pc market is pre-covid it used to be 100% of that pc market. once apple started to design their own processors, about 10 or 15% of even that market that was not growing has moved to apple and outside of intel and amd. even when the pc recovers, intel will actually be making fewer processors depending on just the pc market to drive growth, i don't think will be fruitful it has to drive margins. it helps to provide funding to invest in other areas, but i don't think we can count on the pc market to provide growth.

the growth has to surely come from the data center that's where the competitive environment is likely to get tougher over time. >> so you didn't change your rating or your price target? >> no. as i mentioned, they deserve credit for stabilizing and executing on the margin side, but the growth side -- >> well, on the other hand, some other analysts actually did rate -- there it is. not just that. i need the thing you can focus onto get the newsletter. there we go. who's going to promo us if we don't do it ourselves? deal book this week has been just phenomenal. vivek, thank you

we've got to go to break when we come back, two earnings interviews you don't want to miss proctor & gamble ceo john moeller and exxon ceo darren woods. ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley.

♪ good morning markets look to bounce back after the dow's winning streak is snapped investors will be watching for the fed's favorite inflation data that comes out at 8:30 eastern time this morning. earnings for p & g and exxon we'll speak to both companies' ceos the second hour of "squawk box" begins right now ♪

good friday morning. welcome back we're live at the nasdaq market site in times square it is super hot outside. the markets are a little hot this morning, though it was kind of cooled off by the end of the day yesterday. right now you're looking at the dow. the dow 88 points up nasdaq looking to open 123 points up. the s&p 500 up about 20 points treasuries right now, looking at the ten-year at 3.9% and the two-year at 4. >> good friday morning we'll start with shares of intel which are higher by 7% the chip maker reported better than expected quarterly results and returned to profitability after two straight quarters worth of losses, it also gave a

more bullish forecast, though revenues did slide intel on balance up 7% ford have swung between gains and losses between yesterday afternoon and this morning they're currently down about 7%. quarterly profits and revenues both came in above expectations. why the downside it might be sentiment driven by electric vehicle ford said it will be another year out before it meets its goals of ev production ford shares down about a percent after all those reports and stats came out then shares of exxonmobil are slipping premarket just about a percent or so. it reported mixed quarterly results. profits fell shy of

expectations, driven in part by a drop in oil and natural gas prices, leading to tough comparisons against last year's record profit levels we'll have much more on that story in the next hour when exxonmobil ceo darren woods joins us to talk about those results. joe, i'll send it back to you. >> p & g up a little bit, reporting fourth quarter earnings 1.37, it was a nickel ahead of expectations. revenue of 25.5 billion, almost beat expectations by a billion dollars. strong sales growth was driven by a 7% increase in higher prices joining us is john moeller

625 to 643, the estimate the street has is right around 638 that's not a bad bump in earnings per share is that conservative is that higher than you thought before >> well, we've certainly been encouraged by the quarter we just completed 8% organic sales growth, every category growing five of the categories growing in double digits, 7 out of 10 building share the same story on a geographic basis, every region growing. if you look at theist, our largest country, sales up 6 %, volume share up 50 basis points. within that, you mentioned pricing and volume volume is coming along nicely. if you look at the u.s. last four quarters, minus 3, minus 3, zero, plus 3 in the quarter that we just completed.

the bottom line, which you were asking about, was also very good, up 13%, up 22% on a currency basis that gives us confidence as we head into the next fiscal year, which started 29 days ago. >> organic growth at 8%. last time you were on, what was your range that's above the high end of the rage, isn't it >> we were estimated about 6 at the time that we last talked as i said, momentum is generally building >> we mention the price increases. you're talking about in the future maybe commodity prices moderating a little. foreign exchange might not help. are you seeing some moderation oh of the inflationary environment you've been operating in >> it's mixed.

so, yes, some of the commodities are turning. the transportation market has more or less flattened out on the other hand, you have elements of the commodity market and labor, for example, that are still very tight it's a mixed picture from an inflation standpoint, a better picture than we certainly would have seen at this time last year. >> so the same thing that we've been seeing, a steady downward positive trend in inflation. as one of the biggest consumer products, maybe the biggest in the world, you can confirm that government data we're seeing, inflation is moderating? >> yes, agree with that. as you also mentioned, just to get the whole picture, foreign exchange is still tough. we're looking at about $400 million after tax of headwinds as we head into next year on that front

again, as is reflected in our earnings guidance, generally a positive picture. >> what is your forecast for organic sales growth next quarter for next year? >> for the year, we're guiding to 4 to 5% growth from an organic sales standpoint and the reason for the different between the 8% we just delivered is less pricing, reflecting less commodity cost increase. >> in the organic numbers, that has to do with being able to raise prices and have them stick and not have people go trade down to something else, not get a brand name proctor and gamble product? >> yes it reflects that we've been very happy with our progress there we've made large investments in what we referred to as superiority of go to market and value. that's paid off extremely well

we were building share pre-covid. we built share during covid. we built share post covid. there is some trade down within the portfolio, but the net is loyalty to brands that do the job and categories where performance largely drives brand choice. >> has the motivation to add to your niche offerings -- it almost seems like you've doubled down on all your great brand names, the ones we'relooking a right there. i'm so confused by the letters for which generation, but some generations want the stuff they've never heard of that's like, i don't know, gluten free and free range shampoo i don't understand how it works. but you stopped doing that, haven't you? are you still scouring these brands out there to add to your product portfolio for that

niche? >> we're always looking for brands that can become large, but we are a large brand company and that is our focus. if we look back over any period of time, at least with our portfolio, the large brands have grown at a faster rate certainly in absolute terms than some of the smaller brands there was a big debate five or six years ago about the death of big brands and small brands were all that mattered. my question to you at the time was, if big brands don't matter, how are they big it just doesn't make sense. >> nobody go to that restaurant anymore. it's way too crowded i know it's the same phenomenon i think we're seeing could you have predicted there wouldn't be a recession six months ago are you surprised at suddenly the new narrative that we might

avoid one? >> i think i told you a little bit further back that i didn't view inflation as temporary, which was kind of the talk of the time, that i saw it as being a real force then we moved forward to a discussion about recession i think in the last conversation we had i told you it wasn't clear to me that we were necessarily headed to recession. i still hold that view >> are you going to miss being able to raise prices to help with -- next year it's going to be more difficult to do that, is that fair to say >> our business model inherently includes some level of pricing pricing has been a positive contributor to our top line for 49 of the last 51 quarters that's because we're an innovation based company that's

constantly working to improve the performance of our products and delight of consumers that affords modest pricing, so i would expect that to continue. in some parts of the world where we're seeing the currency devaluation, we'll price to recover that generally volume is going to become a much more relevant component of our top line growth and we're seeing that come through, as i mentioned earlier. >> how many years has john been coming on with us? it is a comforting thing to have you on, john [ laughter ] >> i think you finally filled that chair it's like iger they tried other guys and nobody seemed to stick. i think you filled the chair, not in size, but you have filled that chair effectively

you're like the p & g ceo now, did you know that? >> the team has filled their chairs very well. >> don't say that. don't have false modesty. >> it's the truth. >> it's been five or six years. >> longer than that. >> actually, i was counting the other day. i think excluding the times when we weren't together because you're in davos, we're between 50 and 60 of these quarters. >> it's as long as the last time the reds won a playoff game, is it is it that long? >> it's getting there. >> the whole city must be cranking, hotels and everything, restaurants. >> it's really neat to see it makes a big difference in the city, as you know. >> i want to be a believer there are some really good talent in major league baseball. i'm just not sure the bullpen is there yet. do you think >> pitching is the question,

you're absolutely right. >> abbott is good. he's a bright spot delacruz, i hope he's for real he's kind of slumping a bit. >> we all have our slumps. >> yeah, we do all right. thanks >> thank you have a great day when we come back, stocks trying to make a comeback after the dow fell short of tying its longest winning streak all the way back to the 1890s. futures are up this morning. also, exxonmobil ceo darren woods will join us live to talk seconduaerests qrt rul power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley.

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biogen is acquiring reata pharmaceuticals, which is developing therapeutics that regulate cellular metabolism and inflammation in serious diseases now you know. it's been a very busy earnings week. the question is where should you

be putting your money to work? i want to bring in stephanie link what a week it has been. we thought we might get one of the great streaks of all time. we lost it yesterday afternoon on a relative basis, it's still quite remarkable has the train gone too far or still hasn't left the station? >> i don't think so. i think the economic data that's been coming in is certainly supportive of a soft landing, at least for now. we talk all the time about the consumer the consumer's been resilient because jobs have been so strong wages are up you're seeing autos recover. they're up 16% year over year. housing is back to highs that we saw last year. services are strong. i think pmis have also bottomed. so it's a soft landing we saw that in the gdp yesterday of 2.4%.

that's translating into decent earnings 44% of the companies have reported 80% are beating and they're growing earnings overall about 3% people thought we were going to be down about 5 to 10% we have a long way to go, but so far so good. >> what are you buying right now? and at the same time, what are you selling? >> i've been trimming some of the semiconductor companies. i like broadcomm very much it's up 60% year to date i'm holding pat with lamb research it's up also quite a bit i'll have my eye on those. for the most part, i want to let my winners run in terms of what i'm buying, you know i call earnings season silly season because sometimes the reactions are just absurd.

last week schlumberger reported. margins grew in all four divisions. international grew 21% year over year in the first half of the year, international grew 5%. that's 70% of their business it fell on the news, which i thought was silly. so i bought more of that same with american express i thought it was very impressive they beat on net interest income and on fees. u.s. consumers up about 10%, international consumers up about 16%. the stock fell on the news, so i bought that one. >> how magnificent are the magnificent seven at this point? we have so many viewers, as you know, who are owners of the magnificent seven or the fangs

or whatever you want to call them these days? >> well, i think they're pretty crowded. they're not exactly undiscovered i think you can own a few of them i don't think you want to have your entire portfolio of just the magnificent seven, because i do think you're going to see a continuation of the broadening in the market we have been seeing over the last couple of weeks. again, that is because the economy is doing better. and that's leading to other sectors that are more value to actually catch up to some of the magnificent seven. i do own meta. it was a really good quarter, but the stock is up 160% year to date you're only trading at about 18 times forward estimate so i'm going to hold onto that one. while we know the cost cutting story very well, the growth side of the equation, it's the first quarter that we saw double digit

revenues since 2021. i think the momentum can continue there. >> i know you're a stock picker, but there's a bunch of people that buy indexes, buy etfs is there anywhere you would say i'm all in here or i'm all in there? >> well, i'm overweight more of the cyclical groups at the moment, trying to barbell it with technology. i don't think that's prudent to have that much in tech i like industrials, energy and materials and financials those names that i told you in the beginning of the show, what i'm buying is basically supportive of that. >> it's great to see you stay cool on this very hot friday coming up, nfl themed slot machines are coming to a casino floor near you and then exxonmobil ceo

darren woods is going to join us we'll be right back. >> announcer: time for today's aflak trivia question. what company purchedt&as at and adopted its name in 2005 the answer when we continue. - gaaaaaaaaaaaap!!! is that a goat?! you talkin' about me? gaaaaaaaaaaaap!!! i think this goat is saying “gap.” must be talking about the expenses health insurance doesn't cover. so who's talking about the money aflac pays to help close that gap? gaaaaaaaaaaaap!!! aflac! aflac! gaaaaaaaaaaaap!!! it's about to go down, baby! aflac! aflac! stop that goat! get help with expenses health insurance doesn't cover at aflac.com

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now the answer to today's aflak trivia question. what company purchased at&t and adopted its name in 2005 the answer, sbc communications randall stephenson worked for him and took over for many years. we're getting our first look at nfl branded slot machines scheduled to open up for bets on casino floors that coincide with football season in september contessa brewer joins us with more. >> aristocrat gaming won the rights to design and manufacture

new high-tech machines which allow players to choose the football team experience they want that was really important, the company says, because research shows 40% of nfl fans live in a different place from the team they root for. the ceo of aristocrat told me he and his casino clients expect these games to be a huge draw for players who have never tried slots. remember, slots are a major contributor to gaming revenue. they think these nfl themed slot players will skew younger and more male, which slot machines traditionally did not draw. >> i truly believe this could be an industry-changing event for slot machines and for casinos themselves that's what's exciting about it is pushing the boundaries, driving innovation something that really has never been done before. >> we would be remiss not to

miss how historic this is for the nfl, allowing for the first time its brand to be with used on casino floors the league has made a strong and public commitment to responsible gambling, but it's struggling with player suspensions over breaking the rules and that's sure to be a topic moving forward, joe. >> i don't know. slots, it's not my thing you just keep going and you lose almost all the time waiting for that big payoff. >> the casinos love that you're talking 60 to 80% of gaming revenue comes from slots. what we saw from the last numbers in may is that slot gambling is going up while table games are going down. >> weird why do they call them one-arm bandits? do they steal your money >> in the old days when you actually had an arm to pull down, but now you don't. >> they almost look like video

games. >> the bandit part, i think there's a reason >> of course >> do people knock off bandits and steal from them? >> i haven't heard of that >> you think it's a trading company. thanks, contessa >> sure. still to come, musk versus zuk. the race for advertisers is on will meta's threads pose a threat to musk's recently rebranded x? then in the hot seat, congressman pat ryan calling for telecom companies to remove hazardous lead cables and asking ceos to testify before congress. first, exxonmobil profits slumping on plunging energy prices last quarter, came in as a miss missed by about 7 cents.

the stock is off by about 63 cents. we have an interview with the ceo darren woods straight ahead. (vo) while you may not be running an architectural firm,

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exxon reporting earlier this morning earnings at 1.95 that was 7 cents below expectations revenue was better than the street was expecting they saw record production in the permian and guyana exxon says it's still on track to deliver $9 billion in structural cost savings by the end of the year compared to 2019 joining us for an exclusive interview on the numbers is darren woods, the chairman and ceo of exxonmobil. welcome. thank you for being here. >> good morning. great to be here with you. >> so the talk among all of the oil companies has been that profits are down from a year ago. that's come as commodity prices have come down too when you look at it, you see this is still pretty strong profit when you're looking at second quarters historically >> yeah. i think that's a really good

context to look at the earnings. if you compare it back to 2022, you'll recall we were at record high gas prices. gas prices were three times what the average was. refined margins for seven times historical averages. crude prices were up 40% versus historical averages. a really high year last year it's not good for consumers or economic growth or certainly not good for the industry in the medium to long-term. i think we're heading back to where prices are more consistent with historical averages but we're still in a fairly positive market. refining margins are still higher than historical averages, natural gas prices still a little bit higher. crude is about where historical averages are i think we're back in a better place. demand looks pretty robust frankly we feel real good about the value we're delivering in what i'd say is a more normal

market if you look at a similar period in history back in the second quarter of 2018, the profitis ar double a similar price environment back in 2018 we feel really good about that. >> why is that >> you know, all the work we've been doing i've been on the show talking about the structural improvements and a lot of reorganization streamlining the business, cutting out cost recapitalizing the business, investing in advantage projects, investing in technology, basically trying to pull every lever to take advantage. headquarters is now here in houston, so for the first time in the corporation's history all of our senior leadership team is on the same campus that changes the dynamic and improves collaboration and gives us a better line of site to the opportunity.

not only have we delivered significant improvements over the last five years, we've got a clear line of sight for a lot more in the future. >> one of the numbers we were looking at, earnings of $7.9 billion, that was excluding the identified item associated with additional european taxes on the energy sector. how big of a hit is that, the european taxes on oil? >> yeah. this quarter european taxes aren't particularly meaningful we got some positives back on some tax refunds and some additional european taxes. it wasn't a real needle mover in this quarter's earnings. >> in the permian, it says you guys had record volumes. you said that's because of technology being a key factor. what's the technology? what's it allowing you to do that it didn't before? >> in 2018, 2019 time frame we challenged ourselves to bring

exxonmobil into the on conve convc unconventional space what we've done is kind of moved our performance frankly from the middle of the pack in the unconventional space to the front of the pack with respect to the performance we're delivering we're bringing our production with much lower capital, much lower cost and recovering more barrels than our competitors that's down to the improvements we've made in our drilling and the wells we put in place, the tracking in the sub surface to characterize the wells there's a whole host of technical innovations we're trying to bring to bear in the unconventional space we feel good about what we've delivered to date. we've challenged ourselves to double the recovery that the industry is capable of achieving in the unconventional space.

we've got technology in the field today we're testing that we think gives us a good chance of doing that. we're proud of what we're accomplished so far, but very optimistic about the future potential opportunities to improve on what we've done. >> for a number of years there was sort of a whole mindset change on what shareholders could expect from the majors that was a lot of buybacks, a lot of getting cash back it was almost like harvesting what you've built over the last 50 or 100 years and giving it back to shareholders we just had someone mention that we're at 101 million barrels a day of usage or something globally this was the opec secretary general. he said 105 million. has your viewpoint changed on what your goal should be or what

you should actually try to do? has it changed is it no more about buybacks and dividends and returning? is it about investing to produce oil for the next 10 or 20 years? has it changed >> i would say our view has not changed. to your point, frankly our emphasis has always been on continuing to invest in the business and make sure we're bringing on competitive advantage barrels to meet d dem demands. >> that's going to take a lot more production. >> i think this year we're going to see record high oil demand. i expect that to be next year even be higher certainly in the short to imme medium term there continues to be a significant demand for oil and products that come from primarily because the world is

growing and economic prosperity is growing across the world. one of the things people miss when they're advocating to reduce the amount of oil and gas the world uses, is they're focused on advanced or developed economies. there's tremendous growth happening around the world where the standards of living are a lot lower than what all of us are used to. energy is going to be required to bring that standard up. with that energy, demand will come for oil and gas. >> the u.n. climate change happening at the end of this year in the uae, there's been controversial surrounding this over the role that big oil may or may not play in this conference it's being held in the uae, which is an oil rich nation. the head of the national energy company there wants to invite big oil into these talks it's got the activists who have been coming to these talks for a long time kind of up in arms one of them said that would be the equivalent of inviting t

tobacco lobbyists in to talk about cancer prevention. what's your thought on this? do you want to be there? >> if you look at the world's ambition to reduce emissions and what's required to achieve that, the oil and gas industry, it's essential that we're part of the equation we've got to find a way to reduce emissions trying to narrow the solution sets at this early stage given the enormous challenge in front of the world with respect to reducing emissions and continuing to provide the energy the world desperately needs, it's going to take more than wind, solar and eves the biden administration has recognized the need to open the apeture and focus on how to reduce emissions

i think the industry has a huge role to play we have carbon capture and storage. there are biofuels we can process through existing facilities hydrogen is going to play an important role those are all businesses we're growing here in the u.s. and around the world bringing the industry into that discussion to try to address how do we move forward and essentially deliver success, i think a lot of the activists would reflect on the progress they're making we expect record demand for oil this year and another record next year. it's just a function of there is a need that we do not have a complete solution set to address today without oil and gas and without come busting that and te emissions that come with it. we can play a role in reducing

emissions and doing it in a cost effective way and making sure people around the world still have access to affordable energy. >> you left one off, which is nuclear. do you think there's a shot at making that work and make it politically palatable? it seems like that could be the answer to a lot of the issues we're confronting? >> i think nuclear is a really important part of the equation we have believed that for quite some time. i think on the technology front, there are a number of advances being put forward here i think we're fairly optimistic from a technical standpoint that nuclear has the potential to play a bigger role going forward. i think some of the small reactors also have broad applicability even in our industry we are looking at potential options to engage and employ

those to reduce our emissions. i think probably the social issues and the politics that come with that are a big stumbling block. i can't predict how that would go i think as we focus on effectively reducing emissions, doing it safely and at a cost that society can afford, nuclear will have to play a role. >> darren, thank you for joining us today darren woods >> unless you put it next to fukushima, you want to see something that lasts forever the green lobby hates nuclear too. >> i know. but if you think it's hot outside and it's going to get hotter and hotter -- i know you don't believe that's true. >> i believe it's hotter how much hotter do you think it is it's hundredths of a degree

hotter that's the record we're setting. you know that, right >> on an average basis, but there are days that are going to be super hot. >> in various places global temperature is up hundredths of a degree. >> the relatively is not the issue. it's the factual issue of how human beings are going to have to teamdeal with this, right? if it's too hot outside, people are going to die. >> 98% of climate deaths are down

coming up, the race for advertisers is on. will meta's threads pose a significant threat to elon musk's recently rebranded x? follow squawk pod on your favorite podcast app

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good friday morning. welcome back to "squawk. the musk versus zuck cage match is heating up. musk facing criticism estimating the move could cost $24 million in brand value here to help us with that

version of the cage match of sorts, good morning to you >> good morning. >> let's talk twitter first or x first and then we're going to get into the meta piece of it since we got the earnings this week the brand switch, does it matter to you >> i mean, look, i think it's sort of strange. over time you think about what meta did where they rebranded the parent company that i think, you know, whether or not you love that or hate it, like we still call it facebook, right, you still call it instagram. consumers don't really care about the brand meta it doesn't mean anything to them they may see it. i think the reality is in this case it's not like twitter is owned by x it's x if you think about what elon is thinking about longer term, he's fascinated by payments and commerce and he comes from pay pal. he definitely has the divisions for this to be an everything app like you would find in china

whether you can do that in this country, look, there is no proof that people want an everybody app versus four or five core apps on their phone. that's what he's going to try to prove. there's no proof that americans want it. >> i actually think the product itself and you and i use it relatively religiously, is actually better than it's been in a, very very long time in terms of the actual feature set and technology behind it i know it's gone down a couple times but i'm a fan in that regard i think the complication for lindy, who is trying to sell ads or anybody trying to sell ads is sort of the messaging that sometimes elon brings around things that companies don't think is brand safe. >> there is no doubt that elon tweets things or -- i don't know, do we still call it tweet, andrew i don't know what the right term is anymore

are we xi-ing or something? twitter, it's really hard to replicate that audience anywhere pushing out product. the problem with twitter since it was conceived and you could talk to adam bain or dick costello, going back to jack dorsey, talk to any of the executives they were stuck because of all of their legacy technical debt you've heard the word molasses in terms of how fast twitter moved to innovate. he pushes at an incredible speed. the sort of challenges you're bringing up -- it's always great to have a ceo that tweets. i think that's important i think the topics that elon tends to tweet on raises questions for advertisers and i think creates extra work for

linda, who is trying to restore faith in the platform from an advertising standpoint >> do you have any information whether she's having any success yet in s yet? >> i think it's way too early. threads has lost more than half of its users the only question you want to know about threads, i don't care about how many millions of people signed up, how many people are using it daily? because my perception looking at it, when i post to it, there is not a lot of engagement. >> it seems to me they had great success in the beginning the mistake was not recognizing perhaps 100 million people would sign up and, thereofore, you'd e on broadway on day one and somebody said to me it's thread bare on a relative basis to the feature set you have inside

twitter. >> the only thing i'd say is the market is-- mark is unlike any human we've ever met look at reels. it's now a $10 billion business incremental to what was already on instagram you think about what he's been able to achieve, his ability to execute, copy and improve and throws incredible resources at it i think it's too early to judge. >> so the question is how are you going to get anybody who signed up for threads already back on to threads, if you will? or do you believe because of the power of instagram, which is connected to it, that all they need to do is say 2.0 is here, go over there and check it out how many shots on goal do you have, right? >> you need moments. there are key moments in our life, andrew, where we've turned to twitter and it has become culturally relevant. we can think about it, whether

it was january 6th, you think about super bowl moments with the oreo there are key moments. one of the things that worries me, i'd love your view on this, threads doesn't really want to be in the news business. and, look, that's what triggers people, right? good or bad, sort of the hostility, both ways is sort of what makes twitter the passion comes out, the excitement. >> i was with kevin durant in l.a. on tuesday. he basically runs nba twitter as far as i can tell. >> yes >> you need players like him and others in the sports business to be on there and to be threading all the time and the question is how can you get the media business, which they say they don't want, the sports all of these things that you talk about that are culturally relevant in the moment that feel "newsy," even if it's not news

itself >> twitter is what's happening in the early stage every moment is sort of live on twitter. you don't really feel that so much on threads. now look, mark is an animal. like my guess is he sees this, i wonder how much he will evolve and adapt seeing that it isn't creating the engagement he needs, does he pivot and even if he says no news today, he's got a long history of not liking the news >> we got to pivot because we got a commercial break we sell them still, which is great news have a good weekend. look forward to talking again soon >> when we come back, congress writing to telecom asking them to remove toxic cables and then inflation dwraata is st me be released at 8:30 eastern ti we'll bring you the numbers and get you the reactions.

"squawk box" will be right back. the people who live and work there. because you call these communities home, and we do too. pnc bank.

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but shy of the all-time record and a big week for the economy, about to conclude. two days ago it was the fed decision in just 30 minutes it's the fed's favorite inflation gauge and new results out from oil joint chevron and exxon and consumer giant procter & gamble. we'll bring you all the highlights as the final hour of "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc, live from the nasdaq market site in times square. i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures back on the winning side after the pullback.

13 straight days the treasury record was broken. and treasury yields on the new narrative that maybe there's not going to be a recession. now we're closing in again on the 10-year at 4%. should, though, unless we get even further inverted, we should be trying to get up to where the fed is at this point >> it's eird they're moving a little out of lock step. the 2 year and 10 year had been almost perfect let's get right over to dom chu. >> the biggest oil and natural gas companies with results exxon mobil is down just about fractionally now it's about flat, around 100,000 shares or so of vol ume,

a pullback in energy prices just this past half hour on "squawk box," darren woods sat down for an interview and spoke about how he views the environment given historical context >> we feel real good about the value that we're delivering in what i would say is a more normal market. if you look a the a similar period in history back in the second quarter of 2018, the profits, the earnings that we delivered this quarter are double a similar price environment back in 2018 so i feel really good about that. >> so that's exxon mobil the other big major reporter today is dow component chevron, which is down about a percent right now, 20,000 shares of volume, better than profits and revenues here. but we pretty much now that since chevron preannounced

results this week. so chevron largely expected, down half of 1% and procter & gamble higher by 1.5% at this point, and 25,000 shares of volume this is the company behind big brands ranging from tide laundry detergent to diapers and crest toothpaste, different by its ability to pass along price increases. prices were given a boost by 7% or so. so, becky, p & g shares still a company we want to purchase from >> it certainly is right now back to the broader markets. our next guest says he's keeping an eye on what rising interest

rates mean for the u.s. dollar joining us now is henry -- did i say that right >> exactly >> henry, thanks for coming in today. >> thank you for having me >> so we made it through the bulk of the earnings season at this point we've heard from the fed we know what they're doing next. why is it that you're now focused on the dollar >> i think we've seen the move in emerging markets have a lot it do with the u.s. dollar market that's related to capital flow the u.s. has been attracting a lot of capital from investors. a weaker dollar has the potential for whachanging that capital flow direction >> and that means what in terms of what you should do with your money? >> a faster growing economy and smaller emerging markets >> which are you focused on?

>> vietnam, we like philippines, brazil inflation is from different sources, food inflation, energy is a bigger part of the basket there's still a lot of slack in the secretary of labor markets so that part of the inflation source is very different from the u.s. and that could be at the heart of what causes the dollar to weaken is that we have labor inflation higher here than in other parts of the world. >> is your thesis that we've seen the bigger gains here in the united states and that's not going to continue later, or you just think other economies are poised to maybe outperform >> the u.s. has seen a lot of economic growth, which is why we've got the tightening in emerging it came out of covid later. there's a lot of easing still under way. that's why gdp growth is expected to accelerate in many of these markets and that's the reverse of what's happening here in the u.s

>> so one of the stocks you like is s.k. highnicks? they do memory >> 96% of memory is by those three players. they're acting in the ol oligopolistic manner you would expect and they have cut 50% of capital projections over the next year >> why cutting the capex >> because at today's dram price, the returns are too low you hope there could be further up side if we get a.i. driven acceleration and demand from memory but in the meantime they are reducing the growth in

suppl supply >> and the largest bank in south korea? >> priced at .3 times book and normally do you get .3 times book when there's an asset problem. bubbles happen after fast growth and there has not been fast growth in asia, particularly korea. this is about how companies will use excess capital and they reported not only are earnings stronger being but they're going to buy back stock. >> and asset quality isn't a concern there? >> it's hard to have an asset problem with loan growth has been 3 to 4% and when mortgages are done at loan-to-value ratios of 50%. >> hmm

>> there's excess reserving, excess capital in the system this is really about people wondering when there will be a quicker pace of growth >> henry, i want to thank you for coming in today. >> thank you for having me >> coming up, more economic news in a week that's had no shortage of it. we have june p.c. inflation and other breaking data is on the way. and we'll interview somebody who has been outspoken on lead covered telecom cables in the u.s. since that story first surfaced this month, prentireestave pat rye i don't know will join us. stay tuned you're watching "squawk box" on cnbc powering innovation with access to capital. powering critical decisions with precise data and insights. powering seamless execution in evolving markets.

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welcome back to "squawk box. a new wall street journal report saying an exodus of talent from goldman sachs' asset management division is threatening goldman sachs ceo solomon's strategy

the reports say others my follow their exit there's been a lot of focus on goldman sachs, on what's happening at the firm and how easy or hard it's going to be to pursue the strategy. take a look at the stock $355.37. there may be some folks worried but it hasn't affected it yet. >> not yet need a longer term chart maybe >> and revenue dropped by 15% year over year that was less than wall street expected until second quarter gross margins missed estimates but earnings not what they were due to cost cuts we're going to get highlights from jon fortt's interview a

little later this hour >> our next guest is a congressman led in the recent investigation, saypeaking about toxic cables good morning to you. what do you think the state of play is at this point? this has become now a national story, a very large story about how much liability there may or may not be among these telecom players and also a question about what you're supposed to do with these cables. some folks think they need to be removed, others think that actually could make things worse. >> well, it's a national story but we can't lose the humanity in this. my son actually just turned 4 yesterday, 1 1/2-year-old. to take your kids to the playground and worry that triple the acceptable levels of lead

are in the soil and that's happening in communities across the country, that is outrageous and yet we're seeing at&t and verizon and others not take ownership, not bring forward clear data and evidence. so we in congress are going to need to compel them, the epa will need to compel them and i think it's clear they have to clean up this mess >> have you had conversations with the telecon temperatures themselves >> so we sent a letter last week to put it on the record, i've made clear directly to them that they need to take ownership. people are rightly, deeply concerned in my community. we have a playground that's now been closed for weeks. the local and regional media has rightly covered it national reporting on this now and yet in response to that letter, they've essentially said nothing. one of them in fact said we're not actually worried, we don't think there are health impacts

that is ridiculous we know what the impacts of lead paint is, lead pipes now these are lead cables and we need to take that same urgency and that action and clean up this mess. >> let me ask a different question you've seen some of the reports that say that some of these cables that are underground, potentially taking it out of the ground could make it worse >> we actually need to hear from the telecom companies and verizon is the biggest one in the northeast in my area what is the scope of the problem? they won't even come forward and share the data we expect t"the wall street journal" who has done a great report on this to come forward with information once we know what's happening and we're clear on the transparency side, then we can talk about the clean-up, but i also -- we need to establish from the beginning accountability has to lie with

these companies as you know between at&t and verizon, over 10 billion in net income in their combined quarterly reporting yet they're silent on this issue >> do you think that this is the modern day version of asbestos i asked because when the asbestos issue came to the fore, it bankrupted some of the most iconic companies in america. >> i think that's an apt discussion potentially it's too early to tell definitively but i do think led paint and now led cables is a well-known, tragic story the idea of let's leave this covered and buried, that does not work it exacerbates the problem >> where do you put the responsibility as it relates to the epa or any other agency that

potentially looked at this, as they have in the past or approved some of these products in the past? >> yeah, the epa needs to step up two weeks ago i had the head of the water administration in front of us in a committee hearing and i asked her what are you going to do? what additional authorities will you need and we might have to say the super fund administration isn't enough, we might need more authority. most of these cables are back from the 50s and 60s through mergers and acquisitions, we sort of lost the trail. we need to reestablish that sort of forensic trail and we'll need the epa to step in here. >> it sounds like you're frustrated that you haven't heard back and you're waiting for data from the telephone companies themselves, but to some degree i'm not sure whatever information they're going tho o give you is going tb

changing the game because you're wanting a third party to assess what's happening here. >> we need both. we need cooperation from the companies that own this infrastructure, clearly own it, and then we need executive agencies, and then we need congress and that's where i've stepped in with my colleagues to try to play a leading role here. i demanded today actually, a formal congressional hearing to look into this and get the ceos in here and if needed to get the appropriate federal agencies in here to actually talk about how do we solve the problem, we're going to have to work together >> you have not subpoenaed them, though >> no, we want to give folks the chance to do the right thing, to come forward with the data the initial response was vague from the telecom companies but at least signaled some willingness to cooperate that so we appreciate that but we're going to need to press for urgency and speed here >> congressman, thanks for joining us

it a very important issue. all sorts of folks will be impacted by this across the country. we look forward to talking to you again very soon i'm sure we will given this big topic >> thank you >> thank you >> when we commonweae back, inf data, cost index and then we'll talk about the state of u.s. growth with economist judy shelton. and as we head to a break, you can get the best of "squawk box" in our daily podcast you can listen any time. we'll be right back.

welcome back to "squawk box," everybody. ahead of the new inflation data that we're getting in just about six and a half minutes' time, we've been watching the futures. dow up, s&p up by 30, the dow by 160. the dow did snap its winning streak yesterday which stretched back to three mondays ago. that was the longest winning

streak we'd seen since 1987, was it 1987 if we'd had 14, it would have gone all the way back to 1897. didn't happen. oh so close. >> that's a nanogram >> that's right. treasuries under a little bit of pressure but the 10-year very close to 4%, 2-year is at 8.85 >> and biogen is buying reata pharmaceuticals. >> when we come back, breaking inn inflation data a new look at the fed's new measure. you can always watch and listen to us live on the cnbc app you can do it right now if you're headed somewhere. stay tuned we're coming right become to you

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welcome back to "squawk box. this is cnbc we have the fed's preferred inflation measure, personal income in spending and a new look at the employment cost index all hitting in just a couple of minutes. ahead of that the futures are sharply higher s&p futures up by more than 30 points, the nasdaq indicated up more than 165. if you're looking at the treasury complex, you'll see that right now it looks like the 10-year is yielding just below 3%, the 2-year is just below 4.9% at 6.85 rick santelli. >> we have time. >> we do >> what is that whole yen deal can you explain why the stock market was sharply higher, the nasdaq was up. why do we care

>> we care because they basically are the supplier of the chips for the giant global casino with respect to the stimulus meaning that they're the one area where interest rates are so low they could have carried trade on steroids. all the other central banks and the big economies are tightening you can still pull derivatives and invested here. if you're looking at what the fed or central banks will break to ultimately put pressure on the globe with respect to the economy, most likely that will come from japan. i think that's what we've learned the last 24 hours. what pulled the rug out from underneath the dow jones industrial average streak or maybe fueled it, basically at those interest rates and those levels of stimulus they didn't really change anything with their lending rates. they're going to make their band

a little bit wider they're denying it's a first step towards multiplization. >> is it an indication they think our central bank is about to pause >> you know what, i think that's a very good way to look at it actually i do think there's a lot more coordination, especially with the japanese being the most stimulative. yes, i think you're on to something there precisely. we're at 8:30 eastern. i expect this data to hit the wire and it is let's start out with the employment costs and that's with the second quarter expecting 1.1% this series goes back to 1996, the high water mark forever there going back to record keeping, it was 1.4 and that was in the first quarter of '22. so even though we are down, it goes down pretty slowly. now, if you're looking at personal income, up half of 1%, we end up with 0.3 of 1%

if we look at personal spending up 0.4, it's up a little better, up 0.5 of 1% and income moved from .4 to .5, ramped up also by a tenth from .1 to .2 which makes .5 up .3. and inflation up .4. and this is the second best number year outside the january where it was 1.3 now, if we're looking for the money ball numbers, here they come, everybody. personal consumption, expenditure, deflator month over months expected at .2, the high water mark was up 1% in june of '22 and that was the highest level since 1980 if we look at that same number

on a year-over-year basis, it was expected up 3%, it is up 3%. that's as close as you can get to a two-handle without having a two-handle and 3% is actually the lowest level going back to march of '21 in between there the high water mark was 7% in june of '22, that went back to 1981. now, these really are the, the favorites. the high water mark was april of '21 where it was up 0.63, the highest since 2001 and finally year-over-year personal consumption expenditure core deflator expected to be 4.2, it's up 4.1. if you recall, many on our fed panel were saying they'd like to see a three-handle here. didn't quite make it

4.1. how, 4.1 still is the lowest level going back to september of '21 when it was 3.91%. that's pretty nice progress from 4.6 which remains unrevised. what does the market think it really hasn't moved a whole lot on these numbers the equities, though, have held gains and on the interest rate front, we are below 4%, which was the peak based on some of those stories yesterday that were out there on the bank of japan, potentially tweaking, potentially normalizing and it was hard to decipher some of that i think our contributor, peter bookbar, because a lot of that hit the wires at the same time a nasty note hit >> well done, rick well analyzed. we appreciate it steve liesman joins us with more on that, too let's take what rick said before

the numbers and after, before he was talking about the bank of japan potentially being a signal that, okay, they think our bank is just about done with things then you get these pce numbers that were either in line or better than expectations, lower than expectations. does that all add to that same thesis that maybe the central bank here is really getting to the end of rate hikes? >> things are going in the right direction, becky i don't think they're going to be satisfied with where they're at right now i think all of that wish for wishes that rick was talking about, we wish it had a 3 handle on one of them, wish it had a 2 handle on the other. those are the places we need to get to confirm the idea the fed could be on hold it's very simple but you see what happens to things like income and spending when inflation goes down rick was making an important point about, hey, that personal consumption expenditures, real

spending up 0.4% well, you have the same level, inflation drops out and all of a sudden it's a real number that's actually very meaningful and pretty strong. same thing on disposable income, up 0.2 on a real basis, personal income up 0.3, so those are the sorts of things that you have look for if people can maintain the right level of their income or the same level of income, inflation drops out, all of a sudden the real number goes up it's just kind of simple math but it's important economically. the other thing i'll say is that this is something the fed is going to be watching pretty closely, this idea of the trajectory of inflation. and the pace seems to be pretty good there was a comment in the minutes a few months ago that, hey, we were concerned because the pace of decline of inflation has been slower. and so now we're back to a decent pace in the decline we're still seeing, though, i want to just double-check these

numbers here, goods inflation was negative in this thing, minus 0.63 service inflation down about a half a point but still elevated at 4.86%, becky. so that's something we just want to watch and i'll just check the probabilities before i they do back to you. we were around 6.9 and a little bit higher, 33%. so one out of three chance that november hike is how we're trading. i don't really see a reason. i am interested, if rick is still around, that the u.s. yields seem to be well behaved by what's happening in japan i thought you might get a pop in those yields they did not seem to react >> i think we need to pay really close attention, steve i think yesterday the way the market acted really was a tell that there is a nervousness, that the biggest tension on then tire globe trying to normalize is most like live going to be reverberation from japan and

here's a really big but, japan goes slowly. so the fact that they expanded their band potentially out to 1% but didn't change the rates, listen, i understand that's where the nervousness is going to come from and after years and years of interest rates being too low around the globe, they really helped finance a lot of carry trades but i do think it's going to take a long time for them to move towards the normalization the market's most afraid of. >> joe, i know we got to wrap -- >> like three minutes ago. >> joe, did you see the articles in the "times" that they're plugging a.i. into the robots and it picked out a plastic dinosaur that to me is the opening scene in the apocalyptic sci-fi movie of how it all started, picked up the plastic dinosaur >> the "financial times" >> no, "the new york times." joining us now for more on the new inflation data, fed's

interest rate this week, judy shelton, former federal reserve nominee. judy, tacitous said it first but i think j.f.k. made it more famously after the bay of pigs everybody's taking credit for inflation coming down. i would have thought that maybe jay powell could claim more credit than maybe the biden administration you don't even want to give credit for the fed for a while why do you think inflation came down necessarily >> i would say that instead of self-congratulations, we should be taking this opportunity to really reflect on the lessons learned from this very odd period since march 2020 after covid hit. and i think that we could say, well, if the fed is responsible for inflation coming down, that must mean that the way you fight inflation is to increase the

cost of capital. and that could be the wrong lesson because that would tell us that if inflation were to start heading back the other way, maybe because of energy prices going up or housing prices, then the fed's recipe would say, oh, we have to go back to doing it, let's keep driving up the cost of capital, let's keep raising interest rates an alternative explanation could be that the inflation was caused primarily by the historic level of fiscal transfers during covid and that money is now running out and so we see a decline in that excess demand then i think when you pay people not to work, you're going to get excess purchasing power. that money goes straight into their bank accounts, straight into their buckets and finds its way into the cpi because they spend it on goods and services so i think we should be aware of

that impact, that it was fiscal, and if that's the case, then the fed's model, which says that you should have high interest rates so that some firms can't survive, people get fired. if that was the fed's model, it didn't work out the way they anticipated. we have high growth, which is great, we have low unemployment. i've always said low unemployment and high growth, those are not inflationary you want that to be productive economic activity. somehow government stimulus, whether monetary or fiscal is a good thing there are debilitating kwo, cons

is losing money with the money sitting dormant. a lot of the gdp growth was hiring government workers and engaging in government financed projects, that means through deficit financing. that works its way into both employment and gdp numbers, but is that helping? i still believe that the ideal system is to let individuals in the private sector pursue life, liberty and happiness under conditions of a stable dollar and accurate pricing signals so i don't want any of this to empower the fed or the fed to get too self-satisfied when it may turn out their model is not the right one for a capitalist economy. >> well, we're trying to figure out whether the 2.4% gdp is just simple keynesian economics with the i.r.a. and the chips act and

the recovery and that's probably a bad lesson right now to feel so good about the soft landing because the economy's holding up so well in the face of all these interest rate hikes, but if it's because of what you just said, because a lot of the gdp is government, you know, deficit spending propping up all these projects and propping up labor, then sooner or later, it seems that doesn't work. sooner or later you say now interest rates are higher and we didn't do all we want to do because of all the debt service. >> well, yeah. and some people will say ultimately the infrastructure investment by the government will pay off with lower inflation because presumably you increase productivity. but you could say the same thing about why not have let the free market determine the cost of

capital, why not lure banks away from lending with these high rates paid by the fed and let them engage in the investment in a future productive economy but then that has been seen under the fed's model as inflationary. that's what they try to curtail. it's that multiplier effect they're trying to undermine and that's the way they do it. in paul volcker's day, the fed would just being -- be trying to make loans or intervening in that market. but now the choice for banks is between lending and sitting there doing nothing or buying government debt and only in third place comes making productive the private sector. so i think that's much worse at least the government-financed

debt you presume it wasn't going down a rat hole, you presume it was doing something useful >> the private sector andrew was talking about, hoover dam, maybe never happening again. the private sector might not fix laguardia. the private sector might not put all the new bridges in or stabilize the bridges or build better airports. how do you do it when you know that the government is the only place that's going to do it, you have to sort of accept it won't be as efficient as the private sector but it's something that we have to do or bridges are going to start -- >> the government hires private contr contractors, businesses, to construct these things >> well, there probably are highways, railways, that the government could have a hand in. however, i don't think amtrak is a testimonial to efficiency, and

i would say that the worst prospect for me would be to have our commercial banks be part of that government financed -- i guess because i spent so many years studying the soviet union yet internal economy and the banking structure was really a tool of government to absorb savings and direct them into government-allocated projects based on their plan for the best economic outcome. >> yeah, we know how that ended. that wall, the berlin wall needs some infrastructure. judy, thanks they tell me we got other things to do, but it was good to see you today. "squawk box" will be right back.

welcome back to "squawk box. intel stock jumping. john joins us now with all of it hey, john. >> hey, andrew yeah, intel stock still riding the wave this morning, up about 6% premarket after a narrative shift, good execution in a tough market and posting a stronger outlook than expected. i spoke to the ceo and asked him

about better-than-expected gross margins and what happens to the semiconductor which china hasn't approved with about two weeks left on the clock. that fit into the strategy for intel to separate its chip design from manufacturing. take a listen. >> we have a lot of work to do yet on the gross margin opportunities, but we really saw two things in q2 one was, hey, better revenue results in less underload charges. we definitely saw that fall through into the margin structure and as we build that business, right size the factory network, it takes a while because when we put products into inventory and run those wafers but we see that lessening into q3 and more so into q4.

we have some reserves that we talked about, we have some of those in the second half of the year but not as significant as we go forward, and what we've laid out with what we call the internal foundry models, which helps us get foundry, which helps us get at being a more efficient supplier on numerous dimensions of factory loading, of how we manage our cost structure internally, how we're able to drive more efficiencies between our product teams and our manufacturing teams. so, all of these are putting us on a trajectory of sustained gross margins improvements over time we think this quarter's clearly marks a stepping-stone in that dir direction, and we have a lot of steps to go but we are aiming for that long-term we believe we have a structurally superior business model and we're aiming to get back to that 60-plus percent margin structure >> we mentioned foundry. tower semiconductor. last quarter, you said that you were still looking for china to

approve that and you didn't mention it this quarter. so, the time is getting late what's happening with tower semi do you still feel confident that it's going to get done >> we're still working to get the completion of that deal. i was just in china meeting with the key regulators in this respect, so we're still anxious to see that come across the line and clearly, doing everything we can to complete that transaction. you know, that said, we've cle clearly continued to progress our foundry business model, so i would say our tower acquisition accelerates our foundry business, but our foundry business doesn't depend on its completion, but we still are working to get that done in the near future. >> is there a particular moment when the language changes around that >> well, you know, obviously, the deal itself has an august 15th date associated with it if you look at the filing.

so, there aren't that many weeks left, so we're looking forward to this near-term opportunity to get it completed, and part of the reason i was in china very recently >> so, shouldn't look for any extensions, necessarily, connected to that? august 15th is indeed the date >> i can't comment any further at this point, jon, and obviously, we're working with the chinese regulators and hopeful that we'll be able to come to a conclusion soon. >> so, a couple things here, guys this was a rough quarter overall. pressure on pc margins from education sales. also datacenter customers, the hyperscalers in the cloud, a lot of them were buying nvidia chips instead of cpus, but they still managed to beat, intel did, on both client compute and datacenter next thing to look for, gaudi 3. that's their a.i. chip that's supposed to compete with nvidia. is that a long way off not necessarily. he says they got wafers now, and i was trying to push him, asking

if in september at this big conference intel innovation of theirs they're going to have any customers who are able to say they have experience with gaudi 3. i'll tell you what he said a little later in the day. >> okay. jon, thank you for bringing us that interview it's fascinating we're all trying to understand the future of intel and the fo future of chips in the united states we're coming back in just a moment with a market check ahead of the opening bell on this friday morning to connect youra wherever it is, you need cdw and netapp. cdw experts will work with you to understand your needs, then customize a netapp cloud services solution to integrate data management for all your clouds, helping you reduce spend, improve security, control data 24/7 and automatically detect anomalies. in the cloud, at least. netapp makes efficient cloud management possible. cdw makes it powerful.

well, just a little more than half an hour away from the opening bell, the final opening bell of the week joining us to talk about it is liz young, the head of investment strategy at sofi, and carrie firestone, the chairman, ceo, and cofounder of arias asset management liz, let's just start with you and what we heard in the last 25 minutes or so. pce numbers came out weaker -- or lower than expected or in line with expectations, depending on which one of those numbers you were looking at, that signals inflation coming down does that change your perspective at all with what you think the fed might be doing from here? >> no, it doesn't change my perspective on what the fed might be doing, but i think the messaging that the fed is sending is not necessarily ignoring the fact that inflation is coming down but saying that the job is not done yet and they

want some more time to make sure it's going to continue coming down at that speed and actually, the expectations that the market has baked in are that inflation might even rise a bit through the rest of summer before falling again and maybe coming back down to target by next spring, so i think it's clear that the job is not done the fed has not walked away and declared victory, and that's important for markets to hear that message i don't think that there's much effect of another 25 basis points and in fact i don't think there was much effect of this last 25 basis points, so regardless of whether they hike again or not, it's really about the narrative, and now we've got this pause built in before the september meeting to let more data roll in and find out what we think might happen. >> carrie, the other thing we have been watching so closely this week, earnings. we have heard so many of the companies reporting this week alone. what have you thought from the companies you own? what have you thought about the conference calls what have you thought about the street's reaction to those numbers? >> yeah, hi, becky, it seems as

if the market has been recently positive and earnings have been better than many of investors had feared also, us companies which suggested that things are turning positive i think you heard from google and meta, companies like s&p global, for example, and align technology, those are all stocks we own, that the worst is behind them digital advertising is beginning to pick up you saw that in much better numbers at google, a lot of impressions, ad impressions at meta add prices are still down but that can change as the demand goes up. align reported better numbers than many analysts had expected. s&p global talked about there's starting to be interest in m&a that means there will be ipos. there will be more issuance, and so there's an enthusiasm that investors need in order to have the market broaden if you notice over the last month, the biggest gainers are financials and energy. utilities, number three, and

that's very different from technology and communications, which have led the market all the way through the year, and you can't just ride that one horse indefinitely you really need more participation, and perhaps we're seeing that now and with better gdp and lower cpi and inflation generally. i think that's good news for investors. >> okay. carrie, liz, i want to thank both of you. have a great weekend, ladies >> thanks, becky >> you too >> thank you we're hoping to do the same thing, but before we hand things over, we want to take a final check on the markets we've been up all morning and looks like we're at the highest level for the futures right now. dow futures indicated up by 180. nasdaq futures up by 176 s&p futures up by 33 as joe pointed out earlier, this all kind of happened in tandem with the bank of japan announcing it's going to expand the band, basically easing monetary policy there, people wondering what that means for their indication of what is

happening with other central banks around the globe, if they think that's the end for things. but this has been a really strong, oh, 14 days for the dow, minus yesterday. right now, you're looking at pretty strong numbers. make sure you have a great weekend, everybody we will see you back here next week, but right now, it's time for "squawk on the street. have a good weekend. ♪ good friday morning, everybody. welcome to "squawk on the street." i'm david faber with leslie picker and scott wapner. we are live from post nine at the new york stock exchange. carl and jim both have the friday morning off let's give you a look at futures. of course, you heard becky talking about we're looking for a higher open. we were at the time yesterday, and in fact, we got it but things sort of changed as the day went along let's start with our road map and those stocks that are in rally mode the s&p would be on pace for what would be its third straight