>> right savita, thanks happy friday final check on the markets, and the futures had spiked right at 8:30, but now we see the dow, still up, 51 points. rough session yesterday. got the nasdaq, you know, with some of the strong tech earnings, sharply higher i'll see you we're going to be hanging out. >> see you monday, everybody >> i'll see you monday i will not see you guys this weekend. >> make sure you join us we hang out most weekends. join us next week. "squawk on the street" is next ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at post nine of the new york stock exchange futures are feeling some relief, not just from microsoft, google earnings and guidance, but this morning, core pce, mostly in line lowest year on year number since 2021 bond yields are lower across the curve. our road map begins with big

tech bouncing back microsoft and alphabet up sharply. plus the biden administration is awarding micron $6 million in federal grants to boost production of chips in the state of new york and idaho. we're going to discuss all that with micron's ceo. he's live at post nine and the oil giants, exxon and chevron, both posting lower first quarter profits. mike wirth will join us this hour we'll go over those results. let's begin with the markets and this morning's inflation data, highly anticipated, jim, not just core pce but best couple of months on spending in about a year >> look, this is a front frontsy-backsy day versus what we got i'm going to mention somebody. you tell me if you agree pangloss >> pangloss. >> panglossian number. >> we're taking the s.a.t. this morning?

>> that's where you're starting the show today on this friday in late april you want to explain that to everybody else >> the bonds are right i have to tell you, carl, last night -- i'm sending a note to ruth in the middle of the night, fantastic. alphabet, david. >> she's the president >> alphabet gave us not only an unbelievable blowout number, but they also gave us granularity. they told us what was going on it was joy i left that time warner dinner with sara, how do you like that drop, and it was just incredible it was one of the greatest conference calls, and then microsoft blows alphabet away with how great it was. >> does it really? does microsoft below alphabet away really >> kind of >> you think so? >> i just think the increase there is just extraordinary. >> the increase. >> well, because the use of a.i. >> the increase being what the overall -- >> just the amount of -- azure the upside surprise was remarkable both top and bottom line and amy hood, who is, like,

never effusive, i thought, came in and kind of just said, all right, this is ours. give me the ball and i thought it was a great quarter. what can i say by the way, snap, i mean, i know we're small, but i think you have my man from snap. >> we do have evan, yes. that's right this morning >> that will be good i know it's not big, but we had a night last night about a.i., david, that tells me it's real >> well, the spending is incredible while you were at your fancy dinner, i was just home watching the knicks lose, but reading those conference calls, and the thing that stands out in both microsoft and alphabet -- >> was how badly the sixers played in the first half >> no. it was how much they're spending how much they continue to spend. this after, of course, meta took up guidance on its capex to what could be even as high as $40 billion, though most people don't expect it will necessarily go there during the year we're talking about $50 billion in microsoft, potentially. somebody on the call asking, could you see yourself spending

$100 billion and they didn't really say no. >> that's a check to who >> it's all nvidia >> right and who was on "60 minutes" on sunday night >> i don't know, because it's friday >> jensen. jensen's going to be on. da vinci himself >> raimondo last weekend and jensen this weekend. >> it's more of a business show. >> too bad they don't have anybody that can do a good business interview >> bill whitaker's going to be fabulous it's going to be a terrific interview. what this said is, i understand exactly why zuckerberg has to spend the money, because this is an arms race who has the best a.i.? who has the best interaction with when you speak to a.i.? and right now, alphabet surprised me >> you seem a lot more interested in this than core pce. >> core pce -- >> we tried. we tried to lead with the core pce, and you came up with a word, pangloss, and nobody knows what you're talking about, and we moved on. >> forget the pangloss

forget it. it wiped it out in the sense that we no longer have to be as concerned. i will go so far as to say that, let's say president trump were elected, i think he'd say, you know what? fed, knock yourself out. as opposed to "the new york times" story or the "wall street journal" story which basically said no interest rate moves would be made without him. this move is good enough to make it so powell is able to say, if things don't go our way, we can cut again. we can because it was not stagflation that was an amazing story. it's not stagflation that's what happened we took stagflation off the table, david >> so, it lasted for less than 24 hours >> because we got rid of the stag or the flation? >> more the stag than the flation. >> got it. yeah okay well, thank you for that analysis >> why do you hurt me, michael

can we just go over, for a second, what happened here >> sure, what happened >> okay, so, we did have -- this is what happened this is why i'm going to drop the pangloss >> okay, thank you >> talk a little more voltaire >> you're going to do it in the original french? >> we're going to do erasmus, "much ado about nothing. that's actually shakespeare mixed with -- >> yes, i'm aware. >> march was a week month. we're getting that from a lot of different companies that say, you know, like jb hunt, march was a weak -- all the transports, except for union pacific, because they have precision railroading. did you see that number by jim >> yeah. >> your partner? your pal >> we got -- we do have a downgrade of night and cat on the notion that the business is operating well, but looks to flatten in the near term >> because march was weaker. and it's hard to get a grip on why march was weaker because you have so much infrastructure money coming in. so, i was surprised, but i know

that there wasn't a -- >> by the way, they increased their target to $315 >> some of these guys were bears at $208. they were really terrible. i just think that what's happened, carl, is that we -- it's the jb hunt, which is that you had a good january, a spike in february, and then you had a decline in freight, and it was one of the -- that was one of the most amazing conference calls ever in terms of, like, a realization that march just got weak and what people say it was, it was the 60 basis point increase really, really hurt everybody other than housing, because housing was offered the equivalent of a variable rate deal >> so, the move up in interest rates during the course -- >> really hurt it really hurt -- >> i've heard this we talked this now for a couple of weeks because we've both been getting similar data points from people, i think, in terms of deceleration through march the question is, has it continued? >> yes april's just okay. just okay. now, look, we'll hear -- i

thought that when you retweeted doug mcmillon -- >> the u.s. chief, actually, john ferner talked to abc news >> mcmillon did say -- rich galanti retired. >> was the ceo of costco, and doug mcmillon is the ceo of walmart. >> they said, we're going to hold the line on inflation you know that's 200 million people that we're talking about that benefit doug said this on "mad money." he said, listen, i think we can hold the line. if you can check inflation, particularly at the food level, which would be costco and walmart, you're really left with -- and you don't have to worry about auto, because we know -- i met with carvana last week finally, the used cars are coming down. we know that from carmax that leaves shelter, and shelter is hard to get around because of the 10 million new people who have come to the country it's also because it's just the building didn't occur that we thought. it just didn't occur but if it's just shelter, then

the american people are going to get lower rates at some point this year. >> in the back half of the year, you think? >> yeah, because shelter is doable it's doable. i mean, you can't put things up right now, but a lot of the places -- a lot of places started right after covid, and they're going to come online in the next six months. that could help shelter. even though, david, no one's building more houses than they want, because they all build to spec no one builds just, like, hey, we'll put up a lot of houses and see what happens they don't do that anymore that's why toll had a good number, polulte, kh, lennar had good numbers >> that's been one of the features of the last few years >> they have discipline. >> strength of the home builders even with a significantly enormous -- 550 basis point rise in rates >> we're building half as many homes as we did when we were a country of 150 million people. >> we're underbuilt, underhoused. >> you're on today >> oh, yeah. it's a big friday here

you guys look great in those nice ties. beautiful. wow. >> you should wear a t-shirt it protects the shirt. >> a t-shirt i'm not a t-shirt guy. >> you always -- i learned that at goldman they sent me home the first day and said, where's your t-shirt you don't work here without a t-shirt. >> i'm learning too much >> they said, go to century 21 i said, yeah >> when we come back, as jim and david mentioned, micron's chief, sa on the billions his company is set to receive in this chips act funding. meantime, premarket looking pretty good, although dow remains on pace for the worst month since september of '22 don't go away.

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funding paired with $125 billion from micron to build these facilities here in new york and near micron headquarters in idaho. by the way -- [ applause ] -- it's been mentioned before, it's the single biggest private investment ever in the history of these two states. >> the white house announcing preliminary agreement with micron, awarding the company up to $6.1 billion in funding for the building of new plants, second largest chip subsidy in the nation, and we are just thrilled here at post nine to have micron's ceo, sanjay mehrotra congratulations. this is a remarkable piece of business, because you never left the united states to begin with. >> jim, great to be here on the show with you all in-person. yesterday was definitely a historic day 18 months ago, we were in syracuse announcing our vision for manufacturing semiconductor

memory here in the u.s., and yesterday, the president was back there with us, and we -- that vision is coming to reality. with this $6.1 billion of grants, we will be building fabs in boise, idaho, as well as syracuse, new york, with $50 billion of investment through 2030 time frame. so, this is an exciting time, bringing leading edge memory semiconductor manufacturing to the united states. >> are you talking about doing high bandwidth memory, you know, when we go back and forth? this is the most cutting edge datacenter chip. are you doing high-bandwidth memory in syracuse and idaho >> once those fabs get built, they will be absolutely in production with leading edge memory high-bandwidth memory absolutely uses leading edge memory, so yes, the way forward for the future will certainly be produced there >> before i turn it over to my colleagues, i looked up clay, which is a suburb of syracuse.

sanjay, you need tens of thousands of people. where are you going to get them in an area that, frankly, has not historically had that many workers? >> that's a big focus of ours. syracuse area definitely had manufacturing in the past, so it has the roots of manufacturing in the region. the region has -- the new york state has a strong university ecosystem as well. junior colleges, suny, and prestigious institutions as well, and of course, micron is heavily engaged with the community there. in fact, governor hochul, we established a community investment framework with $250 million investment from micron to reach out to rural communities, to reach out to veterans, underrepresented groups, women, and bring them into the workforce, start apprenticeship programs. micron has started a clean room at a community college to train students there, and so we are

building the workforce, not only in the northeast here but across the country. we have major initiatives, no question that bringing the talent is a major priority and of course, engaging with construction unions as well to bring the construction workforce that's needed for the fabs >> when you talk about, over the next 20-plus years, spending a potential of $125 billion, sanjay, what are going to be the markers by which you actually judge whether, in fact, additional capital is warranted and when will you start to sort of assess whether it's worth investing beyond the, obviously, large initial investment >> absolutely, our investments will be in line with the market demand and of course, in the preliminary memorandum of terms that we have signed with the chips program office, we have built in the flexibility so that we can equip our fabs, bring up production in line with the market demand. that is extremely important for

us, to be staying disciplined with capex, focusing on cost, and bringing supply in line with demand so, of course, looking at the demand will always be a key measure. i want to point out that our first fab that will be brought up with the support of the chips grants in boise, idaho, is collocated with our r&d fab, and that really is a great benefit to have r&d and manufacturing collocated that accelerates time to market of innovative technologies that will go into product like high-bandwidth memory, and then we take them to mega scale in new york so, there's $125 billion investment in new york and idaho will be over the course of 20 years. we are right now focused on the first fab in boise, idaho, and the first two fabs in new york with investment of about $50 billion going through 2030 time frame

>> right 50 right. >> is the workforce issue going to be more acute in idaho or new york >> well, micron was founded in idaho 45 years ago, and we are quite a powerhouse there, and you can see that in boise, idaho, micron established the workforce. micron has built a leading edge semiconductor memory company in boise, idaho we can do that in syracuse as well >> early, when the grants were being framed, there was some criticism that commerce was attaching too many conditions to really what was about internal hr policies and things like that was that ever a sticking point >> well, things like hr policies, these have been dna of micron all along we have focused on really inclusive workforce, absolutely providing child care to our team members. we are very soon will be starting a child care center some of these things were already in play, even before we filed for our chips application. and of course, some of these details regarding some of the terms, we continue to work on

these with the chips program office they will automatically be in the final form with the final instrument expected to be later this summer. >> sanjay, the last 36 hours, we've seen incredible amount of money going to be spent by mark zuckerberg at meta we see it at google, and we see it at microsoft. now, i know it's initially nvidia, but it's going to be you too. were you surprised at the gigantic amount of money that is going toward you from these hyperscalers >> no question that as we discussed in our earnings call in march that it is a.i. that is accelerating the demand for memory and memory is a key enabler. i mean, think about it a.i. needs data. i mean, you look at large language models, then they're going into trillions of parameters they need more and more memory they need that high-bandwidth memory they need low-power memory they need more capacity of memory if you just look at nvidia gpus, starting from a-100 with 40

gigabyte of memory, the latest blackwell announced with 192 gigabyte of memory in just a matter of short period of time so, memory is a key enabler, and i just wanted to show you because you brought up high-bandwidth memory, jim, this is a technical marvel here >> how many -- >> this is 24 gigabyte today, it is with eight die stacked into it. this is smaller than my thumbnail, thinner than my thumbnail, and we have stacked eight die into this today. it's already sampled the stack with 12 die in it. next year, it will further give an increase, and these a.i. accelerators are hungry for memory and you know, these die, what they do is they need, today, three times more silicon to produce the same number of bits, and you know, they give tremendous high bandwidth, so what it's doing is creating a real shortage on the leading edge supply, not only high-bandwidth memory is in great demand

it's creating a shortage on the non-high-bandwidth memory, so this is the kind of marvel that micron produces. >> one last question i know they're hurrying me here. okay, so, microsoft says pcs now stabilized, going higher how do you feel about pcs right now? >> well, we mentioned in our earnings call in march that pcs will have a modest growth, low single digits, '24 over '23, in terms of unit sales of pcs what's important is a.i.-enabled pcs require more memory. they require 40 to 80% more d-ram content than the average pc and these a.i.-enabled pc, the neural processor units will continue to increase their adoption late this year and into 2025 >> intel last night said that pcs are weak, so i was thinking that it's raining on this side of the street, and you got the sunny side >> content increase is a factor. for us, another big factor is that the supply is very tight. this is what leads to '24 as

being the year of recovery >> you called the bottom >> and improving fundamentals of financial performance, and '25 being a record year for the company. >> you nailed it at 65 in that conference call. that was an amazing call they're telling me i got to go i don't want to go, but i guess we have to thank you, sanjay. >> we have a great team. >> you got the stars good work. >> thank you >> yeah. when we come back this morning, an exclusive with chevron's mike wirth we'll hear what he has to say about the company's results today along with oil and nat gas prices as the futures hanging in there on this friday after an evtf wk. n'go anywhere. ! - okay! - love it! umm... first word. - tonsillitis! - nostril! uh-uh... bill! uh-huh... - hip-hop! - limping! mmhmm! medical bills! uh-huh! - pancakes! - cash! who pays you cash when you have medical bills? grrr! no idea. [tapping] gap! the gap left by health insurance? who pays cash to help close that gap? aflac! oh, aflac! get help with expenses health insurance doesn't cover at aflac.com

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take a look at the premarket here, get a sense of where we are. nasdaq had the most recent record close on april 11, but it's down the most since, about 5% dow, s&p had a record close march 28 and are only down 4 we're going to get a little bit back this morning as the futures are green. don't forget, you can catch us a flome, anywhere, just listen tondolw the "squawk on the street: opening bell" podcast.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. lot of hand-wringing about the u.s. economy this week are we in stagflation? is the economy running too hot one thing "the journal" points out today, jim, this year, the u.s. will account for 26.3% of

global gdp that's the highest in 20 years >> well, look, there is a -- we are in a bit of a halcyon moment, but remember, also, our trade partners are not -- particularly china, so it's easy to sneak in. a lot of what we're doing is what we're going to talk about with mike wirth from chevron oil and gas infrastructure, it is a major turn for almost everybody in the southeast it would be anything from dow chemical there to what sanjay's talking about, with the gigantic spend on semis so, it's happening it's not recognized as much, because i think a lot of people feel that the administration has not been that good at getting growth, which is why the communication of that message is kind of strange for america. >> yeah, well, we'll get a jobs number a week from today, and if april comes in below 4, we'll today the record for the most consecutive months below 4%. >> that's amazing. we're a growth country like

we've not been, and remember, we have all -- immigrants, ten million people that have come in a lot of these countries do not have net increase in population. we do. that is vital for growth so, it's an exciting time for the economy, and reflected in the stock market we do need 4.1% so that we can get a fed rate cut, but that's not going to happen yet. although, we got some weakness >> i know we wanted to dig in a little bit more, david, to at least the google numbers, the dividend, the capex beat, the buyback addition, $70 billion. >> a new dividend. the enormous buyback, as you say, 70 billion. a lot of time spent, jim, on the call, talking about youtube, which is something you love to talk about >> i do. it's really granular >> incredibly strong numbers we'll get to microsoft as well and, again, at the top of the show, we didn't get through all the numbers, up 31% at azure, but google, that acceleration was a significant -- doesn't -- search, by the way, is as high

as it's ever been, which would certainly seem to rebut those who, at least in the near term, have said that the company's facing an existential crisis in terms of search as it moves to generative a.i. and whether they can maintain what is essentially been a monopoly in search. well, the concerns, perhaps, fading away. they kind of have over the course of the last few weeks anyway in terms of the stock, but youtube tv, by the way, has 8 million subscribers. >> absolutely. >> we talk, and i talk often about the loss of video subscribers amongst the so-called cable companies. yesterday, it was our parent company, comcast today, it's charter with a loss of 405,000 video subscribers on a smaller base, by the way, so percentage-wise, larger for the quarter. but some of that is being made up by the likes of youtube tv, which, again, at 8 million subs, has become a major player in terms of distributing cable channels, essentially. >> so glad you brought this up

they're talking about benefitting from the combination of strong launchtime growth, innovation in the user david, where the viewer is going. they're going to youtube and this was the first -- i begged them for data on youtube, and you get the data, and you realize that, well, this is how people are going to get tv >> i mean, it's already begun. it's well under way. just the numbers on youtube are very significant i wanted to give people -- ad revenue were up 21%, direct response and brand network revenues were down, but again, subscriptions, platforms, devices, year over year revenues increases 18%, being driven largely by youtube subscriptions. that's not just youtube tv >> beauty ads. they have fashion ads. lifestyle. entertainment. david, you know who they are they are like the old days, the halcyon days, i used thattwice now, sorry, of linear tv

>> right >> it's incredible this is where they all went. they went there. >> not all of them >> i'm saying the direction. >> a bunch of the cord-cutters have gone to that, or youtube has just replaced, youtube itself, replaced watching television >> they don't do fire shows. they don't do cop shows. they're not like nci >> they look at mr. beast videos, and he's -- >> remember the cat videos >> yes t, the cat videos are amazing. president, former cfo, i begged him, tell us how good this is. i came away thinking, look out, david zaslav they want nba. they want -- >> yeah, i mean, you can't compete -- the likes of these smaller players can't compete with amazon, apple, alphabet >> they can buy juventus, manchester united, crystal palace

>> head count was down >> david, this quarter, i know that i love the microsoft quarter, carl, but this quarter even told us that the other bets aren't doing badly waymo. >> yes >> waymo we have a guy named musk, okay and he's trying to do se self-driving, something robo and then we have this here, it's all the robo we need >> mercedes had news on that front as well. bunch of price target increases. b of a goes to $200. the b of a note is titled, "firing on all cylinders," just in terms of the sell-side reaction >> even just simple things like doing a mcdonald's restaurant of the future these guys are -- >> they have been on your list of things to trim, sell. is that no longer the case >> if we did not get granularity from ruth about where the money is spent, you have to sell the stock. what did she do? she gave us more granularity

than i've ever seen. i will tell you, she's fabulous. >> you've said that before >> when she was at morgan stanley. >> you've been saying it for a long time. >> she's the best. i like anthony too >> the new cfo >> her husband >> i didn't know who that was. $100 billion business potentially between cloud and youtube as well, so alphabet is trying to focus, say, hey, you know, we've got a lot more than just what is going on at pure search >> this is company that, frankly, very apt piece by nathanson saying, listen, maybe it was there all the time. maybe it was there all the time. >> doesn't mean that they aren't going to see more competition as the world moves to more generative a.i. solutions for search, and gemini is not going to be the -- won't be the answer for everybody. it won't >> i think a lot of people are concerned that you would -- that you would cannibalize search, because of a.i., and it didn't happen >> no, but bing numbers were better, right?

i mean, bing is a thing in a way it wasn't a year and a half ago. >> these guys can be frank >> bing is, of course, if you remember, is microsoft's now it's powered by a.i. >> everybody wants -- look, yesterday, bill mcdermott talked -- servicenow -- talked about people going on a.i. dave, this was an a.i. explosion last night but no one talked about the check that you have to write to nvidia, because all these guys are coming up with their own faux little chips, you know? look, you heard micron we were talking about the high bandwidth. it is just remarkable how much -- how much that nvidia's behind all of these, and people should remember that, because i know a lot of people feel nvidia's seen its day, it's come and gone, and i don't think so blackwell, as he mentioned, next generation, allows you to do this perfect video >> it was interesting to listen to sanjay talk about how chip intensive the new pc cycle will be by the way, microsoft pcs, up 17%. was a beat

they do guide cloud and azure higher look for double-digit revenue growth in fiscal '25 that's in line with the street, jim. b. of a said the only a.i. beneficiary at this point is microsoft, in a sense. >> well -- >> although they didn't give a lot of detail around copilot >> that's not fair no, they didn't. they didn't tend to emphasize it because they had so many other -- gaming, everything. now, it is interesting can we point out, we have microsoft saying great things about the pc we had micron earlier on saying the pc has bottomed. but now intel, which is the primary pc chip company, their stock is down 12%, so the question is, why did they see weakness in pcs like everyone else, as they say, when no one saw it other than intel now, there was a moment in the intel conference call where he said, we're going back to groveian ways. that's a reference to andy grove, who, may i just mention,

missed no quarters >> no. >> grove was a tight -- and to invoke grove in this conference call with these numbers? heresy >> yeah. >> heresy. >> i'll go back to microsoft it's a better story. $50 billion in capex i still -- that number, potentially, is what the -- >> whose capex >> it's not just microsoft at $50 billion or alphabet at 40-plus or meta. it's even elon musk's new xai effort, which is raising the -- the information was reported on it, $6 billion in new funds for a valuation that's over $18 billion. he's going to be spending billions buying h-100s, by the way, from nvidia >> he has to get the higher end. he's got to get the 200s >> or blackwells for his new -- his new -- for the xai effort, which is separate from tesla's purchases of the h-100s for

tesla to fuel its own self-driving so, the demand, jim, just keeps coming >> demand is incredible. i thought meta should be up a little more, because they need to be in the arms race but you know, we're going to switch to david's baliliwick. we're going to oil oil is exciting today because there's exxon and, of course, chevron. let's check back in on shares of chevron after reporting first quarter results, which i thought were great i think the stock doesn't know what it's doing. joining us now, in a cnbc exclusive, is chevron ceo mike wirth. mike, always great to have you on the show. >> morning, jim. good to see you. >> mike, i see many good things here permian, absolutely terrific global, great. of course, we have to talk about the acquisition. that's -- but i think that -- i've got two other acquisitions that i like. you did a renewable energy acquisition, and you did pdc, which was colorado, so i'm asking, rather than go to the big dog that we may have to talk

to that isn't complete, how are those, and how did they help you? >> jim, you're right it was a really strong first quarter, and of course, those acquisitions, along with our base business contributed to strong operational performance, strong financial performance and strong shareholder returns operationally, this was the highest first quarter production in the history of our company and the first quarter u.s. production was up 35% versus last year. on financial performance,ninth straight quarter with adjusted earnings greater than $5 billion and all that translates to really strong returns to shareholders this is the eighth consecutive quarter where we have returned over $5 billion in cash to shareholders so, strong contributions from our core, ongoing business, and of course, important contributions from the recent acquisitions >> well, in the meantime, you also -- i'm not saying that you sell yourself short, but the things you're doing environmentally, i want to mention, because you're part of

what i regard as the pragmatic energy complex, and i just want to give you the floor for people to know that we're not going to roll back the things that are involving climate change, because you're at the forefront of being pragmatic and doing the right thing. >> i think you're using an important word pragmatic. i used the word balanced as well we're investing in things that we think can bring benefits today and things that fit with our core competencies, and so, in the most recent quarter, we sanctioned a project to increase oil seed processing capabilities to help grow our biofuels business, where we're the second largest biofuels producer in the united states. we also sanctioned a project in california to take an oil field where we've got solar production today to support our operations, and we've got excess solar capacity, which we will now use to generate green hydrogen, and supply that initially, at least, out to retail stations for vehicle transportation so, these are things that fit

with our competency, fit with our asset base, our customers, and things we can do today that help contribute to addressing the desire for a lower carbon energy system. >> mike, it's david. a lot of focus as well on the pending transaction to acquire hess, and i wanted to just ask a few questions around that. first of all, when do you think you're actually going to schedule a shareholder vote, or when are they going to schedule a shareholder vote, and when do you believe you'll be in substantial compliance with what the regulators have asked in terms of the antitrust review? >> glad you're talking about shareholders this is a transaction that is good for shareholders. shareholders of hess, the shareholders of chevron. it's good for the industry in creating a company that's well positioned for the energy transition, and it's good for the people of guyana we expect the mailing on the hess proxy to go out before the end of april and a shareholder vote to be held late in may so, that's -- that's upon us

here and we've been working constructively with the ftc. we respect the role that they play in the oversight process on transactions and expect to, you know, certify compliance with their second request here by mid year and work our way through the process with them by mid-year. so both of those things on track here in the second quarter >> the unexpected part of this has been a dispute with exxon over whether or not as part of their joint operating agreement in guyana, they have a right of pre-emption. are you getting the sense that exxon would like to push this arbitration out as long as it can? >> well, the arbitration process is really set by the arbitration tribunal, and so we have to respect their procedures in this so, we don't control that.

at an investor conference last month, exxon suggested that five to six months should be sufficient we certainly believe that's a sufficient time to address what's a pretty straightforward interpretation of contractual language, and we've worked with hess, who's really party to this joint operating agreement, and i think in their disclosures, have -- we've indicated in our disclosures that we've suggested that third quarter hearing and a fourth quarter resolution would be appropriate, so we're working with hess to move this along expediently, and we think that's in everyone's interests. >> yeah, darren woods was a guest earlier on "squawk box," and he said, listen, we're not interested in making a play. these are his words, for hess. we're not interested in a transaction on hess, but he continues to say it's about protecting the value they created, and they believe they

have that right of first refusal. what do you say, and is there any chance we can actually see the language that is at issue here, given it would help the market decide who's got the upper hand >> i think, you know, i'll let exxon speak for what their intentions are we're not a party to this agreement, and it's a confidential agreement, and so that -- anything that would relate to making terms of this agreement public is something that really is the province of those that are party to the agreement, and that would be, you know, exxon, hess, and cinook i think those questions are probably best directed to them >> just to make it clear, if you were to lose this arbitration, you're not going to buy hess >> there's a condition precedent that needs to be satisfied, and if an arbitration judgment in the event it were to go against hess's interpretation of the contract, and we feel very confident that their interpretation is the correct

one, then that condition wouldn't be satisfied, and the transaction would not close, correct. >> so, mike, let's talk about the price of oil i understand -- i think there's about a $5 war premium is the way i looked at it we have an inflation problem in the country. where would oil be trading if we didn't have problems in the mideast, and do you think that the united states can be a swing producer to actually get the price down >> certainly for the last decade or so, the u.s. has been the producer that's met most of the demand growth in the world at the margin production in the u.s. is still growing, although not at the same rate it was earlier this last decade. demand is growing pretty strongly, up a couple million barrels a day last year, probably another million and a half barrels a day this year, and so while there may be a slight risk premium in the market, we also have a market that's pretty finely balanced, inventories that are a little bit on the lower end, and i think we'd see, still, pretty

decent commodity prices in this environment, and as you know, jim, it's a volatile world, and we have to be prepared for ups and downs. we're prepared for volatility. we've got a strong balance sheet with net debt in the single digits, and we're very confident in the future and any price environment, which is why we raised our tdividend 8% earlier this year and continue to have a track record 37 consecutive years of increasing our dividend dividend payout is 4%, which is almost three times what the s&p 500 is, and over the last five years, we've grown it at a rate, 30% higher than the growth rate of the s&p so, we're confident in the future, and we're prepared for volatility in commodity markets. >> so, let's talk about what could make things difficult. you have the permian it looks like you're finally getting enough pipe from the permian to bring that to market. it wasn't the case and then you have the president calling for a pause in lng in

2028, which would be devastating, i think you would admit, because these projects have to be decided now for 2028 so there's a lot of them that are being shelved. do you have any pipe, and do you have enough export >> we do have offtake capacity out of the permian we've got export capacity. our company is well positioned for, you know, market vagaries in terms of transportation and exports. but i think the broader point you make is, you know, it's a good thing for the world that the u.s. is an innovative energy powerhouse it's a good thing for our allies it's a good thing for our economy. and it's a good thing that we've got dynamic, strong companies in this industry that have invested in u.s. energy as at the same time we're reducing carbon, to our earlier discussion, and we need to have a policy environment that encourages investment, because not only does our economy rely on it, but those of our allies do, and the world economy does and so, we need policies that

are predictable, are consistent, that protect the environment, but that also encourage investment and development of the resources that this country has that are vital to our security >> well, mike, i want to thank you for coming on and answering a lot of questions tough questions about the hess deal, because the stock has gotten killed since your this yr i hope to see you soon glad that you came on the show i thought excellent quarter and terrific dividend policy thank you. >> david, jim, great seeing you always take care. >> as we go to break, let's check bonds as well, as we head yields lower across the curve in the wake of the core pce let's take a look at at yields be equities, financials and utilities, lagging, the s&p close to 5990. don't go away.

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jim, what's on "mad" tonight. >> access and global doug peterson and fico not only still around but doing fabulously. >> so many names we didn't get to capital one, roku, snap. >> roku not so good. look, i wanted to listen to evan tell him congratulations i've been hard on him because i've been saying he's nice >> nice premarket gain at least, 20 plus percent on snap. that's coming up later this morning. >> very good reach of advertising. got to hand it to him. >> good weekend. >> you too. m. cramer, "mad money," 6:00 p. tonight with the dow and s&p well into the green. don't go anywhere. y to p ut finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star.

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[ no audio ] >> good friday morning welcome to another hour of "squawk on the street. i'm sara eisen with carl quintanilla and david faber, we are live at post nine as always from the new york stock exchange take a look at stocks up nicely. s&p is up a percent right now, and most sectors are higher. communication services in the lead thank you to alphabet which is leading that sector, but also some strength in match, take two, comcast, having a little bit rebound after yesterday's selloff. the nasdaq comp up 1.3%. for the week up 4% feeling like a bumpy week, overall positive the s&p for the week up 2.6% there's weakness in energy, utilities and health care. we'll talk about that. let's get to treasuries, big reaction to the pce report, the inflation report, we'll talk about coming in line treasuries got bought for a change the trend higher yields they come down, still el vaetsed

2-year yield here are movers we're watching alphabet and microsoft helping drive the market higher their shares getting a nice pop after both of them report strong earnings we're going to speak with one analyst who raised his price target on alphabet shares of intel on pace for their worst day in almost four years. the street weighing in with a slew of price target cuts on the stock following a weaker outlook. we'll break them down for you later this hour. look at snap, soaring more than 20% on the back of its earnings beat daily active users during the first quarter rising 10% and the small and medium sized advertisers on snap chat jumping 85%. evan spiegel joins us in the next hour on "money movers" to talk about the company's growth outlook. >> busy morning for data umich with rick santelli hey, rick. >> hey,carl. you know, many different metrics, these are april final reads, so two weeks ago the mid month read these reads have moved quite a bit, which is a bit unusual.

so we go from our headline michigan sentiment for the april final from 77.9 to 77.2, brings it to the weakest level since february if you look at current conditions, the last look, the mid month was 79.3 this goes down to 79.0, weakest since last year. expectations dropped a full point from 77 to 76. weakest since february of last year or excuse me february of this year. now inflation, and this also is interesting, the one-year inflation moves from 3.1 back up to 3.2 3.2 is the hottest since november last year when it was 4.5. finally, five to ten-year inflation is the only metric out of these five that remain the same as the mid-month read at 3% and 3%, by the way, was the highest level since november of last year but it stays at 3%

yields hardly moved on that, which is a little bit surprising you want to pay particularly close attention all yield moves this week, especially on a friday, after big movement to rates to the upside. sara, back to you. >> okay. rick, thank you very much. that little move up in inflation expectations for the one-year the other data point to talk about, which we were all anticipating, the pce, that's the fed prefers inflation gauge and i guess the headline it could have been worse. it comes in pretty much in line. this number usually comes in line because we have inputs, cpi, ppi for march, and we have the gdp deflate e the price deflator for the last three months there's the core which is what the fed pays close attention to, up 0.3%. you can see bit bar chart that, you know, it does confirm that the disinflation progress has stalled out. that's the flip side of this good that it was not worse and it was not 0.4 or 0.5, but it

should be coming down like we saw at the end of last year, and it hasn't and that's why the fed is pivoted away from talking up rate cuts. if you look at the progress, for instance, the line chart of the core pce, this strips out food and energy more volatile, it shows you the trend has been lower, continues to be, that's good, but the flattening on the end there, that's not exactly what fed wants to see, especially because we're not back at 2% when you look at the year over year number they want to be at 2.8% that number was a little bit worse, so that's why they need to see more evidence. >> we settle for 2.8%. just have them say it's okay. >> some people think yes we talked to mark zandi who is at moody's. >> told us yesterday - >> if he were king for a day we would cut rates get ahead of a recession. >> put it all in perspective for us, sara we have so much data that comes at us over the course of time and the anecdotal things we

share in terms of conference calls and things of that nature, where do things stand, you know? >> services inflation is still running hot. if you break down these numbers, the bulk of the inflation is coming in services spending and pce versus cpi more weighted to health care than housing cpi is, you know, has a heavy weighting for owners equivalent rent 0.1% in goods spending it's happening in parts of the economy like insurance, like health care, like rent, and housing, and the question is, can the fed do much about it i will say on the plus side, to put it all in perspective, a big pick-up in spending in the march month. 0.8% was more than expected, and was the highest since january of 2023 so you got that in the wage data, the personal incomes rising 0.5%. people are getting paid and still spending the question is, excess savings

are running out and the savings rate did fall and we saw it fall to 3.2%. they're saving less, spending more, getting paid more in wages, but the savings are running down let's go through some of the anecdotes. tractor supply ceo on with jim for "mad money" and i thought it was interesting how he characterized state of the consumer >> we've been facing really for the better part of nine months now, the headwind where consumers are spending more on services than they are on goods, combine that with disinflation over the last sixmonths in our categories, we've been kind of navigating through those headwinds. >> and then how about capital one, another place that people are watching the ceo on the call linked quarter delinquency and charge off rates trends were modestly worse than what we would expect from normal seasonality and believe this is driven by lower and later tax refund payments to consumers this year relative to what we've observed, but this is

not change our view that credit is settling out modestly above prepandemic levels in 2018 and 2019 so case for normalization, but early trends we're watching on delinquencies. the colegate ceo on the call they had a pretty good quarter. >> decent quarter. >> combined volume growth and they were able to pass on higher pricing. >> raise the guidance. >> raise guidance. >> stock up a couple of a percent. here's what they say about the consumer. >> consumer has been quite constructive we've seen, obviously, the significant inflation move through the category over the last year. we expected that we would see a return to volume growth as inflation became more benign and pricing started to stabilize in the categories and that's principally what's happened? and one more i want to bring you because it speaks to, david, your point, why don't they just start cutting ratesp walmart u.s. ceo john ferner spoke to abc news and i pulled out this quote, at walmart we are seeing prices that are in line with

where they were 12 months ago. i haven't been able to say that for a few years now. mission accomplished they don't sell as many services as goods, so that's not where the inflation is, but the biggest retailer in the country is saying we're back to normal. >> it does help psychology to some extent as well, because a lot of people feel they remember prices from a number of years ago when it comes to food, comes to the basics, and that can be helpful. >> it can be helpful, although, you know, the cumulative impact of inflation still weighs in places where you are seeing the biggest jumps and look, there are still plenty of components in this pce number seeing 5% year over year jump, not as many as we saw say in 2022, but that number is still elevated compared to where we were in 2018, 2019 i just want to say, next week is going to be see key. we have a fed meeting and jobs report and we've got the refunding announcement from the treasury on monday. >> oh. >> i knew you were going to be curious about that

>> yes. >> obviously, we pay attention very closely now to these announcements on auctions and how much the treasury has to sell. >> where they will hit in terms of maturity. >> the coupon sizes and overall amount as well i think the feeling is the bill demand has been super strong, the short-term debt, and we'll continue to see that ramp up bank of america doesn't think we'll see a big change in the overall size, but markets paying closer attention than we would otherwise. >> big day for mega cap tech alphabet and microsoft rallying on their earnings beat market cap crossing the $2 trillion mark for the first time since november of '21 and announcing its first dividend. jefferies analyst brent phil raised his target on alphabet to 200. he was at 180. has a buy rating on the stock and a buy on microsoft happy friday, brent. >> happy friday. >> are we done worrying about existential threats to search on the alphabet side? >> i think in the short term

google put up great numbers across cloud, search, and clearly the sentiment was the worst of any tech names that we cover here and everyone continued to believe that ai wasn't even part of the story and what they're proving is, ai is going to matter, but it's going to matter down the road. today we're still super early in this journey, both for microsoft and google, it's really starting to only build and that's going to be the next ten-year wave we're at the beginning we think that google's making the right moves. they could be quicker and faster to make those moves and get them addressed, but we think again, based on what we're seeing so far, there's no erosion of search share and advertisers continue to flock to the platform because the users are still there. >> we've been talking all morning about the capex arms race and it was a healthy beat on that front at alphabet last night. is the guidance on capex still within the realm of the reasonable >> you know, every quarter we

bring capex up for microsoft, we brought it up, you know, over $10 billion initially at the beginning of the year and we're continuing to be too low on capex. i think what we're finding with ai war, right, there's effectively only a handful of companies that can compete in a major way and it's a capex war every vendor from meta, microsoft, google, all our capex numbers are going way higher, even for microsoft, again, clearing over $50 billion of capex this year, that number, you know, could be 65 to $70 billion plus next year you're looking at a situation where everyone is still building the ai infrastructure and this is why, you know, semis and hardware continue to outperform internet and software, because of the investments that all these vendors are making when zuckerberg, you know, posted the picture of him and jensen on his instagram, everyone knew where the money is going. that's effectively where everything is going right now. it's not going anywhere else,

other than nvidia and the basically enabling infrastructure, these data centers. we ran into one individual this week that said we're now worrying about power and the transmission lines to transmit all this ai excitement to the end user we've got bigger problems right now beyond just technology that the tech industry has to solve, and it's pretty eye opening, some of the stories that we're hearing. >> yeah presid, the power issuea real one and the billions that has to go into that side of things to actually make good on all the billions going into data centers is important the numbers themselves are staggering you've been covering this industry for a number of years put them in some perspective i mean, i think you said microsoft could spend $70 billion next year on capex it's almost hard to conceive of numbers that large. >> it really is. i think you go back to, you

know, this is, again, really, really early and i think they have to build ahead of the demand they've said this today. they're sold out they can't meet the demand the capacity, they're overwhelmed. this is the same situation when you talk to oracle, when you talk to everyone in the industry, they're at this point that demand is exceeding the supply, and so they're having to make a guess of what is the right demand level that they're going to see and they're all building ahead of what's happening. now we could run into a situation where they may over build. now the good news for microsoft is, they've said they can over build for azure, but maybe their security business sees an influx of demand, maybe the gaming business, and they can shift demand around to their different divisions. microsoft is in a unique situation because they can go up and down the stack from applications to security to gaming to infrastructure, other companies that we cover can't really flex that way

yeah, it's going to be -- the numbers are really hard to believe every time we look at it, there's no way they can spend more and they keep spending more and we keep raising our numbers. again, they're doing it profitably which is amazing. this year margin is up 200 basis points. >> if that's the cost to compete, what does it mean for the competitors that are not spending $70 billion or hundreds of billions of dollars on capex? who gets hurt? do they ultimately end up just competing with each other? >> our rule is you need an ai need, users' data and money. there's only a handful of companies on the planet that can do this. that's amazon, google, microsoft, meta. i think the rest are going to be very difficult there will be room for ai players in verticals like health care and retail that we think, again, the companies that have that data and have that user, it's really hard to train, to effectively run these systems, so it's going to be very, very difficult for the others to survive. so the question is, what happens

to oracle? they're on the cut line. i think they'll benefit, but there's others that will -- may not. weigh what's going to happen to ibm? are they in that same situation i'm talking about in the big four and the answer is no. >> right we know the one key beneficiary, i don't believe you cover nvidia but that stock up another almost 5% this morning. >> absolutely. they're the number one from every piece of work we do, everyone is spending on nvidia and again, this is hard to have these conversations with our clients right now, as a software analyst, you know, i feel like i'm -- i'm on aisle 4 mopping up a spilled milk everyone wants to be a semi and hardware analyst software will have its day again. look at the microsoft move, it really hasn't had the same move that you would think it would have and it's because of the capex war and those dollars

falling to the infrastructure category it will come to the application category later this year in 2025, but today, we're not trying to fight it we're saying this is clearly in the semi and hardware infrastructure, don't take that tradeoff most our clients are overweight that we're seeing them continue to shoot off like a rocket. >> yeah. the hardware guys have seen the opposite story in years past brent, great stuff thank you so much. always good. brent phil on mega cap tech. as we head to break here's our road map for the rest of the hour shares of intel plunging price target cuts on the stock this morning we'll break them down for you. >> we're keeping an eye on shares of exxon and chevron, they are both down despite some beats there. energy is the second best performing sector this year. we will take a look at that. >> alphabet first ever dividend. we'll get a closer look at some ndamhe top tech divide nes

in this market, as "squawk on the street" continues.

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if you've ever grilled, you know you can count on propane to make everything great. but did you know propane also powers school buses that produce lower emissions that lead to higher test scores? or that propane can cut your energy costs at home? it powers big jobs and small ones too. from hospitals to hospitality, people rely on propane-an energy source that's affordable, plentiful, and environmentally friendly for everyone. get the facts at propane.com/now. let's take a look at shares of chevron and exxon they're actually both down this morning. both companies reported earnings that were essentially in line, if not actually exceeding expectations, but, obviously, not the strongest quarters that they have had overall. interestingly, hearing both from

mike wirth and darren woods, on "squawk box" this morning, one key area for both companies of course is guy yan na it's important for exxon because they've gotten to as much as 600,000 oil equivalent barrels per day from their operations there, that they run, but that they have a significant partner in hess and hess, of course, is being acquired by chevron. what has happened recently, and this is somewhat unusual, the significant dispute between exxon and hess, essentially, but also chevron, over the joint operating agreement that hess and exxon have in guy yan na, and whether, in fact, it gives exxon the right of first refusal and a change of control of hess to buy the 30 roughly 30 some odd percent that hess owns of the gianna operations. here's darren woods talking

about it earlier on "squawk box. take a listen >> i've made it clear in the past that, you know, this is not a play for hess. we're not interested in a transaction on hess. this is around protecting the value we've created as part of that development, making sure that preemption rights we believe exist in the joa are recognized and confirmed and understanding the value they're putting on that asset is and what options are to maximize the value to shareholders. >> as mike wirth, ceo of chevron, similarly, you know, what his expectations are, both on getting a shareholder vote on hess, which he said i believe would come towards the end of may, and antitrust approval and when is this arbitration now that the two sides are in, going to come to fruition? i believe we have what he said here take a listen. >> while there may be a slight risk premium in the market, we also have a market that's pretty fin

finely balanced. inventories are on the low end and i think we still see pretty decent commodity prices in this environment. as you know, jim, it's a volatile world, and we have to be prepared for ups and downs. we're prepared for volatility. we have a strong balance sheet with net debt in the single digits and we're confident in the future and any price environment. >> i guess that was, obviously, not what i was talking about that was just his overall view, sara, of the market. >> is the hess situation an overhang for chevron's stock >> well, conceivably it has introduced a great deal of uncertainty as to whether they're going to succeed in acquiring the company, so to the extent that there are those who believe it's a valuable acquisition for them, that would be the case. now he -- wirth fully believes, we haven't seen the language that is actually involved here, and i don't believe we will, it's confidential, but they are confident that they will prevail in arbitration, but again, so is darren woods at exxon.

it's an unusual situation for two companies that have been, obviously, partnered in the past, certainly in different operations as well, and it followed after what appeared to be some period of negotiation between the two around this and ultimately will end in arbitration. we'll see how long it takes. >> hess reported too and they had really good numbers, which was a reminder of what this is all about. >> very good point there is a belief, in fact, were the deal to break, given it was done at largely a market -- almost a market level, and all stock, that he's stock actually would go higher, not lower. >> because they're sitting on all this production. >> because guyana is working out so well as the lead there, exxon is the lead partners. >> meantime, guys, first peek above 5100 in almost two weeks intel is down on its weak outlook. what's ahead for the company here we'll take a look at what the street is saying

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we delivered a very solid q1 we met revenue, we beat on eps, we gave an outlook for first half to second half, a much stronger second half outlook, as we saw with growth across every business forecast for the second half and somewhat like the market indicates, maybe a little bit of market weakness in the first half of the year we're work through that, but we're very confident in the outlook. >> that was intel ceo pat gelsinger speaking with jon fortt about the chipmaker's latest results and outlook wall street not buying into the optimism, shares plunging on pace for their worst day since july 2020 and a number of analysts cutting their price target on the stock. kristina partsinevelos tracking it all it is quite a divergence to see all the other especially ai focused chip makers up this morning and intel getting slammed. >> it is a divergence, but at

the same time it seems to be a continuing story for intel they're promising us that business will get better but investors are losing faith as quarterly guidance falls flat. bernstein, for example, said we would like to believe the bottom is in, but we have lost count of the times we've heard it and frankly there isn't really much to say beyond the obvious calling the company profoundly broken, hence their price cut to $35 from 42. rosenblat they're losing confidence because management appears to push out one of the chip technologies to 2025 and say sell with a price target of 17 citi they were surprised and cut their price target to 35 jpmorgan was a little more optimistic they believe that overall general purpose compute demand is bottoming and that's what management said, the bottom is in q1, and we're seeing a gradual recovery but they think the next year will be, quote, the most difficult for the team. they launch two data center products and two client products over three new manufacturing tech notes intel did promise their new ai

chip we talked about that a few weeks ago. the gowdy 3, would bring in over $500 million in revenue in the second half of the year. goldman sachs worries intel will keep losing market share in data centers to nvidia and amd, arm, and we talk about losing shares or losing market share, look at the stock. it's taken a nose dive since pat gelsinger took over as ceo, down roughly 48% since his rein in 2021 intel shares have been under performing the broader chip sector consensus is, i don't want to hate on this company, but investors want to root for intel in their turnaround plan but team to want to do it from the sideline and not risk a lot of capital doing so. >> yeah. it's been painful. i mean what's it going to take then to turn this thing around in a significant way >> well, already the

disappointing thing gross margins dropped. it's at 43% and we need improvement there. the average selling prices are going to increase, gross margins increase by 200 basis points the foundry business lost $7 billion last year. this is supposed to be how they turn around and start manufacturing chips for other companies around the globe that business posted a loss of $2.5 billion in q1 and that loss is only going to get worse in q2 i think it's a matter of really the gowdy 3, the ai chip, and improving gross margins within the second half. there's so much riding on the second half of this year. >> yeah. again, there it is, down over 11%. thank you. kristina partsinevelos on intel. wanted to take a look at shares of charter that company reporting earnings this follows the report from our parent company yesterday that was not well received by the marketplace. in particular as well, comments from comcast cfo jason armstrong yesterday in terms of the environment for the broadband.

broadband is the key business for comcast and charter as well, although wireless becoming a more important business and they did add what were in line essentially with whatanalysts had been expecting, some i think 480,000 mobile subscribers 75,000 broadband subscribers were lost during the quarter again kind of more or less in line with video, continues to erode. 405,000 subscribers. as an overall percentage of the number of customers they had that was larger than 389,000 at comcast and points to overall a shrinking, continuing to shrink world for the cable ecosystem. some of that being made up by the virtual mpds youtube which has 8 million. on the cast call chris winfrey ceo of charter said he would not provide a detailed timeline for the timing to reaccelerate the broadband business it's fluid they are dealing with this acp program that is being phased out. it was government helping people to afford broadband essentially

helping them to pay their bills, and that is no longer going to be around let's call it in the next month or so so charter and comcast working through what that's going to mean you can see not as bad at least as was the case yesterday. comcast shares, rebounding a bit as you pointed out earlier. >> 1.5%. >> speaking of charter and intel some of the laggards on the s&p this morning take a look, although the tape fairly constructive at 5100. more on the movers you might have missed and there are a bunch today. this morning's inflation print coming in line yet again vemo ahead of the fed's decision next week. don't go away. dude, what're you doing? i'm protecting my car. that's too much work. weathertech is so much easier...

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♪ welcome back i'm pippa stevens with your cnbc

news update. former national enquirer publisher david pecker is back on the stand be this morning for cross-examination in donald trump's hush money trial yesterday he testified about his role in hush money payments to adult film actress stormy daniels and former playboy model karen plk dougle trump has pleaded not guilty to 34 counts of falsifying business records related to the payments. egypt sent a high-level delegation to israel today in hopes of negotiating a cease-fire agreement with hamas in gaza. that's according to an associated press report. egyptian officials also warned an israeli ground invasion of the southern border city of rafah could have a destabilizing effect on the region and mike pinder, the last surviving member of the moody blues has died pinder's family announced the death of the keyboardist and founding member of the rock hall inducted band today. he was 82 years old. back to you. >> tough month for classic rock.

thank you very much, pippa. pce, the fed's preferred inflation measure coming in mostly inline. steve liesman has been tracking that and what it might mean for the fed. good morning. >> good morning. markets dodging a bullet this morning saved by a couple hundredths of a point where the higher than expected inflation for the first quarter was concentrated in january more than it was in february and march and we knew january was lousy. because it wasn't bad doesn't mean it was good the headline year over year rate, it went the wrong way up a tick progress on the core has stalled to a creep so there wasn't much change in the outlook for the fed. bettors on the june cut look likely to lose strong down in inflation in july for it to be in the money and it's not that has pushed most hopes for a cut to september and beyond. if you add in the beat on consumer spending, which has been pretty strong, put that

together with sticky inflation, there's a chorus of folks who say the fed may not get the window to cut and may not need to since current rates do not seem to be weighing heavily on the consumer the fed reiterates it believes the current rate for now is sufficient for the fed to hit its 2% target. i don't expect much talk about cuts, carl or sara, or about hikes. >> yeah. maybe some balance sheet reduction, though, people are thinking may, may we nmight get some of that. >> sure. >> this "wall street journal" report that i want to be careful on the language here, because it wasn't so solid in terms of this necessarily happening, but trump allies drawing up plans to blunt fed's independence and i say that because the article said it wasn't clear whether president trump knew of these plans of these plans and denial from some of the representatives of the campaign contemplating a president having a more direct impact on the

federal reserve and blurring that independence, wiping out that independence, how should we think about that >> well, you know, sara, i read the article carefully like you did and i came up with a couple takeaways. the broad brush of it is scary, but a lot of it is speculative there was stuff that was derived from a document and stuff from what advisors around the president were saying. you know, there were some pretty crazy advisors around the president in the last presidency and they would say some pretty crazy stuff and there were some smart advisors around the president and they didn't necessarily hear the crazy stuff. there was mornings we looked up, and he was going to place 50% tariffs on mexico and i would call the saner advisors and they would say we have not heard of that the document quoted was not sort of crazy stuff, the idea of the president or the congress having more say so over emergency lending from the fed, having more say so over the fed's

regulatory, that's not crazy if you step back and say what about the most outlandish part of it, the president having say so over the fed, well, sara, here's a quiz for you, what chart of what currency country would i put up to show why the independence of the central bank is so important. >> turkish lira, no question about it >> there it is. >> which is interesting because they're the one that delayed a trip to the white house. >> yeah. so there you go, folks there is the dollar. look to the left there that's a time when the turkish central banker used to come to jackson hole the whole turkish central banking operation was very well regarded in the west why? because they did a lot of smart things, they were reasonably independent. erdogan starts to get on his case and they start to weaken policy it becomes -- and the lira crashes or the dollar strengthens dramatically we have the world's reserve currency and one of those

reasons is because we have an independent central bank like we say in economics, you can have any future you want, it's okay to do it, but right there is the cost on your screen. >> yeah. i mean it is hard to imagine even a president who thinks an election cycle getting in with a vote on the -- there was even one mention reddit that the president could be a governer. it's crazy to think about. >> right it's important to think about the president, president trump, and the privacy in two phases. they have inside the trump white house a very strong group of people who were betting fed nomination -- vets fed nominations going through a process in a way that looked a lot like other administrations that was very organized. towards the end of the administration, that process appeared to breakdown, and it looked like the president started freelancing a bit away from that. there were two phases that i covered. one was -- seemed to be very controlled, very normal, and

really operating the way you would think the -- an administration would operate and the other was, well, shall we say, very different. >> yes there were always the tweets, the pressure tweet, on powell which he seemed to shake off thank you, steve. >> exactly. >> steve liesman. >> by the way, speaking of currencies, dollar/yen, you care deeply, just passed 157, which is crazy japan came out overnight and didn't hint at more rate hikes and said they would keep buying bonds and their currency continues to fall sharply, not talking turkish lira but it is getting weaker april market weakness was probably long overdue and expecting chopness and volatility to come back in the coming weeks and months. vemo strategist brian bellsy has an s&p rating of 5100, and he joins us now, which is exactly where we are now, brian. what do we expect going forward? >> well, good morning, sara. we came out with that call the last week in february, much to

the chagrin of more of our investors. in fact, many people tried to label us as an uber bull let's be clear on this, we're still very, very bullish longer term we still think u.s. stocks are in a 25 secular bull market that's been our call since 2010, however, we do believe that the market so far this year really since october the second -- i'm sorry the start of the second year of the cyclical bull market has been more about fomo and momentum and more about sentiment and we believe many of our compatriots that a do what we do left their process and discipline and tried to chase the market we're sticking with our process and discipline and we're very, very comfortable with the 51 minutes target year end at $250 of earnings. earnings are tracking around 241, 242 the fed is going to be on hold longer than everybody thinks and everyone is way, way too focused on fed funds futures they've been wrong for 18 mo months we want to buy stocks cheaper.

we're not trying to be cute but we're investors longer term but think we get a better entry point. >> fed funds futures change and can be wrong but the 10-year note yield near 4.7 does that change the long-term value pop position if you don't think the fed is going to cut any time soon. >> great question, sara. if you take a look at since 2007 we have reared an entire generation that believes you only buy stocks when the interest rates go down or the fed comes in and cuts rates. in fact, higher rates, these higher rates are normal and we think this is year one or two of normalization that will take three to five years as we hover between 4 and 5% on the 10-year treasury the longer term 75-year average on the 10-year treasury is 5%, so you have double-digit earnings growth and double digit low single digit it -- sorry, high single, low double digit performance and the stock market

all very normal with respect to valuation we're very normal too. this is a situation where earnings, look today, are driving the market we believe that on a near term basis, again from a price perspective, wear ahead of ourselves but earnings will be the key longer term. we want to buy stocks a little bit cheaper. >> are earnings expectations moving higher, though? >> another great question. you know, coming into the year, revisions were quite negative and we've been calling for this earnings revision cycle to improve. we continue to see that. now, typically and historically we're starting to see some of the historical precedent follow through some tech stocks semiconductors in particular, have from an industry perspective, have been amongst the most volatile earnings longer term and we're starting to see that. we have a big number coming out on may 22nd, nvidia, that's going to be a really great one for the market to gauge that we actually trimmed our nvidia position a little bit. we're not overweight anymore and i think that's been the right

call as the market has been kind of soft here, but we do believe from a sector perspective, that financials, by far, are the area that we're going to see the biggest uptick in earnings, especially as 10-year treasuries hover in these average levels between 4 and 5% we're long tech and long financials. >> got it. brian, thank you for talking us through the strategy have a good weekend. >> thank you. >> brian belski. after the break, google parent alphabet announcing its first ever dividend. a closer look to find yields in ckthte sce ba in a moment in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there.

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after stronger than expected results from the analyst that follows the company. it announced its first ever cash dividend let's get to dom chu he has more on where to find yield. i assume the yield is not too large, dom. >> it's going to be like meta, half of 1% by the time it's

done an annualized rate of roughly 50 cents, if that were to carry through quarter per quarter, you're talking 40-basis-point yield. it may open things up for other inve investors. microsoft offers three-quarter of 1% yield. m m meta0.50%. when it comes to the s&p 500, tech, communication services and disdiscretion names that actually could have a decent dividend pay out check out the dividend screen we ran. we looked at three sectors, positive 12-month price performance and those stocks that pay a dividend that are in that kind of tech or tech ancillary type range check out the names that came up on our screen. the top five dividend payers are big names, like ibm with 4% dividend yield cisco systems, 3.3%. seagate technology at 3.2%

hewlett-packard at 3% and texas instruments as well. if you take a look at tech dividend payers, some are a lot heftier than the mag 7, but the mag 7 are the ones that matter, so i'll send it back to you. >> a lot of people argue check out snap today up 24% on its report about a two-month high on this top and bottom line beat revenue up more than 20 year on year evan spiegel will join us to eado t numbers on an interview on "money movers" in a few minutes. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow!

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for twenty dollars a month each for a year. so, ditch the other guys and switch today. buy one line of unlimited, get one free for a year with xfinity mobile! plus, save even more and get an eligible 5g phone on us! visit xfinitymobile.com today. big moves in the auto space. tesla is the second biggest gainer week-to-date after musk's bullish conference call on tuesday night. shares are on pace to end the week up more than 16%. going in the opposite direction, it's hertz falling further b of a today says it hertz so bad today as they downgrade to sell a lot of plans to unload even more evs than previous can't get rid of them fast enough. >> that was a poor decision to load up on those teslas and then the after-market prices

obviously not helping them, outgoing ceo as well, i think, is still the case. yeah, that's been rough going for hertz. not the same for tesla, as you point out. sara, had a nice rebound well above a $500 billion market value yet again. and outpacing the market value of exxon, which briefly eclipsed it when tesla was down over 43%. not long ago >> i mean, earnings driven market, brian bell ski just told us, you do see that in some of the movers today nvidia, super micro at the top rezmet is a -- this is a medical device company that makes the sleep apnea machines it has had this wild swing because there were worried the glp-1 drugs were so effective they would also help with sleep when you lose weight there was complimentary talk about the two today and the

numbers came out much better than expected. that's been a -- it's at the top of the s&p right now. >> back to nvidia. sort of a good place to end as well, given all the capex numbers. we talked about this with phil as well. those enormous numbers so much is going towards that company and the stock is continuing to move higher. again, 2$2.1 trillion market value. should add exactly the same market cap as that of alphabet which eclipses $2 trillion market cap again on the strength of those strong numbers. strength of strong numbers all right. that will do it for me for the weekend. i think i'm ready. a w about you? lot of live market coverage continues after this unlockingh r of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization.

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or leisure... with work. giving you the control to find the perfect balance. go national. go like a pro. good friday morning. welcome to "money movers." i'm sara eisen with carl quintanilla live from the floor of the new york stock exchange today the difference a day makes. big tech lifting the market. alphabet at a new all-time high. the ceo of schwab asset management is with us next. snap shares jumping for the first time in eight quarters after earnings evan spiegel