improve your skin at omni lux ledcom. >> good wednesday morning. welcome to squawk on the street. i'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. premarket likes that softer than expected cpi print one tenths on headline and on core as yields backing off two year below for some rotation into small caps. russell futures up more than 1%. our roadmap begins with the president saying

the u.s. has a trade deal with china, subject to final approval from him and president xi. >> plus, we'll have the latest read on the consumer prices, as carlos has indicated, coming in less than expected core prices, excluding food and energy, also below estimates. and elon musk is walking back his social media posts at least a bit about president trump saying they went too far. tesla shares are moving higher in the pre market, building on yesterday's big gains. and we've got a date on autonomous boston. >> let's begin with these us-china trade talks in the last hour. the president did post on truth social quote our deal with china is done subject to final approval with president xi and me. full magnets and any necessary rare earths will be supplied up front by china. he went on to mention chinese students having access to u.s. colleges and added, quote, we're getting a total of 55% tariffs. china is getting 10%, says the relationship is excellent, jim. we'll see how this gets resolved. we got a small china readout. but that was earlier this morning. >> right. well, first, if you

want to try to make money off, you're a trader. it's a general motors which had the most problem. they also agreed to a $4 billion shifts in production from mexico. so that's a clear ramp to 53. i think ford's got it too. there were the two that were held back. there's a lot of misinformation. i've seen it even in an interview this morning. here they were giving this stuff to germany and japan. there was absolutely just a total stranglehold on the us. let's not forget that it was not done in a way that was in a vacuum where everybody was hurt. second, there has to be some sort of way during this period where we develop something that will take their place. mexico could be the way to do it. it is just shocking to me that we didn't have a game plan. no game plan. so the final thing i say is, david, there may be a deal and there may be students involved, but we don't know what there's going to be involved with semiconductor. >> no we don't. there's no mention of chips here, which obviously we know is a very important part of at least what the chinese were viewing as

something that they felt was a key. so yeah, students, rare earths, obviously the magnets is again, we're just dealing with a social media post and we're reading into that at this point. the 55% number, when you really sort of get to where things are running in terms of an effective rate, even though it's 30%, there are lots of part or number of parts of the chinese goods complex that are much higher. so you get to about 51%. so kind of in line with where the effective rate is right now. and that's all we know. we haven't heard from the chinese yet. >> no we don't know. and the chinese did have a kind of discouraging statement talking about how look, we'll take it until we have to fight. i mean, when i say on the semiconductors, a lot of people feel it was advanced micro because they have a gpu. that's what you need. that's what nvidia has. and advanced micro is up quick. ten micron is high bandwidth. that's also used for data centers. so that would be something we could give them. sanjay mehrotra has been very quiet about it, the ceo. but there's you might see nvidia

going up here. nvidia gave a very good talk and talk. this was jensen's time to go sovereign. i again some with friends with an outfit called mistral that does llms. but i have to tell you carl, here it goes again. and i talked about it last night at the top of the show. they made a manifesto about quantum, about how quantum is here. there are four quantum stocks that we have to follow. some of my people that i work with were very i think that they were they were probably concerned that i went out and said, look, we ought to be looking at rigetti. we ought to be looking at, you know, the ones that people talk about, but they're going to fly. >> there's a couple things happening. one is, you're right, jensen, saying that quantum is at an inflection point. it's going to solve some interesting problems in the coming years. remember, he was a little more circumspect about the timeline a few months. >> ago when i first talked to him about it a year ago. it's like, jim, i mean, come on, quantum isn't even that good right now. quantum is wow, really good.

>> just to get a little more into that, let's listen to what what jensen did say specifically about quantum. >> there's an inflection point happening in quantum computing. the number of logical qubits are starting to grow. well, just like moore's law would. i could i could totally expect ten times more logical qubits every five years, 100 times more logical qubits every ten years. those logical qubits would become better error corrected, more robust, higher performance, more resilient. and of course, we'll continue to be scalable. >> talking about developing new materials, jim, at the molecular level, perhaps down the road, they do have this partnership with novo on drug discovery. >> look, i i've been waiting for that. recursion was supposed to be one two. and the drug person is excellent. i keep hoping that they do some big deals on cancer. you're able. i've been listening to a lot of people who claim they have ai, and it's starting to bother me again because they're they're doing spreadsheets and calling it i.

after working with all of the sites that are now saying they're really good at math, they're awful at math, what bank would let them in? but you're seeing i mean, i did a piece last night that basically said, okay, here we go. i, i d-wave quantum rigetti quantum computing, go get em. and david, look at that. i'm not saying i'm a sage. no, i am saying that jensen is giving you the green light to a lot of companies. that may mean absolutely nothing, but they have quantum in their name. i mean, honeywell's been very honest and said, listen, we're not ready, right? and ibm does have quantum. and that's one of the reasons why ibm is at an all time high. >> those are incredible moves. if you were lucky enough to have decided that quantum was where you wanted to be at the beginning of this year, you were very happy. or even last year. what do you mean, guys? well, i mean, it's not yet proven, right. we don't know. >> but it's younger people who are really cashing in. and you may sit here and tell people to buy smuckers. >> you've made this point, right? you've made this point about nuclear and certain crypto assets. that's very

disheartening. >> i'm disheartened by it. >> well, don't be disheartened. why? by the way, what do you. >> want to get? read the names. >> you want to get heartened? read sam altman's blog post from last night. it's entitled the gentle singularity. and to, you know, we had jensen. i think when you when you ■talk about te leaders right now in terms of where the future is, it's jensen and it's a lot of it's sam altman. >> well, they're great friends. and you remember nothing took off. >> i took out a few. >> things he gave sam. >> i took out a few things to structure. and. >> what? tell me something good. >> what is the letter that i think people should read? because it's got a lot of different things in it. but part of it is, of course, talking about the really the near-term advances that are that are coming up for the 2030s. for example, he he writes intelligence and energy ideas and the ability to make ideas happen are going to be wildly, wildly abundant. we hear that word a lot, by the way, abundant. these two have been the fundamental limiters on human progress for a long time, with abundant intelligence and energy and good governance, we can theoretically have anything

else. he goes on to say, if we have to make the first million humanoid robots the old fashioned way, but then they can operate the entire supply chain, digging and refining minerals, driving trucks, running factories to build more robots, which can then build more chip fabrication facilities. data centers. and the rate of progress will be quite different. and finally, the last part i'll take for you guys and the one i've been focused on there will be very hard parts, like whole classes of jobs going away. but on the other hand, the world will be getting so much richer so quickly that we'll be able to seriously entertain new policy ideas that we never could before. we probably won't adopt a new social contract all at once, but when we look back in a few decades, the gradual changes will have amounted to something big. well, okay, so nobody's going to have a job, so we're all going to be wandering around looking for some purpose. we're going to have an age of abundance. an age of abundance. >> you drive me crazy. >> thank you. we have my work here is done. >> a birth rate that's like the handmaid's tale. and we need

people. and you may think that. what? look. and we're rounding up people in this country and send them where god knows where. we don't let anybody in the country. we have a series of jobs now that the only people who really wanted them were people who felt, look, this is how i can get my kid to college, which is really kind of the goal. and you're going to need all the robots you can get, and you need robots making the robots. and i don't know why you are so cavalier about the idea that we have enough people in this country to do jobs. >> i'm not talking about the population at this point in terms of the lack of growth in certain countries. obviously, our country is far from in danger. south korea, they got a real problem. that's something like italy has seven and italy. yeah, but all that said, i just want to point out that there are you're going to continue to hear whether it's this, you know, whether it's musk or altman or hassabis at deepmind, this idea of an age of abundance, coupled with huge social changes that may have to take place in the social safety net. >> perhaps.

>> or a universal income. it's coming fast, potentially. now, i always sit here and remember we talked about autonomous cars seven years ago, like they'd be here tomorrow and they're finally just. >> about to fly to. i mean, just got a lot of money from the government. >> you know, they're not always right. >> i got to tell you, carl. david, probably in another time sat here and bemoan the seamstresses. >> or the farmer. >> he misses the agrarian economy. >> he misses the jeffersonian period. >> david. the man brought us tomatoes. all right. so enough. >> meantime, shorter. >> life on. >> a shorter timeline. there is consumer inflation on the radar today. cpi for may coming in as expected. two for year on year you strip out food and energy. it's 2.8 just shy of forecast jim some relief in cars, apparel clearly energy airfares all down. >> and i'm going to take the other side steve liesman like i don't have any glasses. shelter remains very sticky 3.9 and

they've got remember there's no housing component. they got to get that down. these others could be ephemeral. these still i mean, you could say we've not really seen the impact of tariffs, but housing is too expensive in this country and we don't we're not doing enough about it. >> redfin with the number that today the typical home sold in april took 40 days to get into contract. that's five days more than the prior april. >> well, the last few days with the with the bond market, we've seen lennar go up. we've seen toll brothers go up. but david, when you want to buy a house in this country, it's too expensive. and it never came down the way it was supposed to come down because there's not been enough construction. we have. we never talk about it. zoning is the enemy of people who are aspiring to the middle class. >> mortgage apps, though today, jim highest in two months. our biggest jump in two months. >> big number. >> i was i was gratified by that because bonds have been stable. >> and that's what the 30 year fixed at 6.93. >> i know that people can't. how long can people stay in where

they are? i don't know. >> well, they've been staying longer than they would otherwise have. mortgage rates have been lower and they had the birth rate. the affordability is nowhere near what it once was. you know that. i mean, it's versus five years ago, right? >> no, it's not good. >> no. >> but do people relate that to politics or is it just still one more thing that the lumpenproletariat doesn't care about? >> i don't know, the age of abundance is coming. don't worry. >> age of abundance. where'd you get this? you watch some pbs show canceled pbs? >> yeah. >> it's all linear. now. >> where do we come back this morning? elon musk is. david said, his mea culpa regarding his social media post criticizing the president. got some fresh posts from the president, by the way, on truth social. adding to the china readout, president xi and i are going to work closely together to open up china to american trade. this would be a great win for both countries. we'll talk about what that means when squawk on the street continues.

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before they're completely sold out. that's 800 947 5100. >> elon musk walking back his criticisms about the president on social media overnight on x, he posted, quote, i regret some of my posts about president trump last week. they went too far, as you may recall, their differences over the tax and spending cuts bill extended into some back and forth responses on social media about other issues. meanwhile, jim tesla is going to go for four days higher today. it's up 17% since friday. >> we got a lot of downgrades and they cut it visibly stuck. it didn't go down and then it went up 10%. i'll give you a good example. guggenheim has a sell on it today. if i crossed out the word sell and i read it, i would be buying. i mean, it's that positive. it's about robotaxi and it's about the total addressable market. and initially tesla won't do that well. but i've got to tell you, i would never sell tesla on this. and then piper sandler, with just a few bullet points about why it's going to be fantastic. driverless teslas have been spotted in austin. of

course, he's walked back when it's going to be. but i continue to believe that you've got to own the stock. >> yeah. piper's point is that actually higher car prices will drive the market for robotaxi. >> i it was i got a kick out of reading it. but the fact is david stocks bottomed and now you're talking about take a look. >> it's just last week after the after the post you were saying i don't think you can. >> own 73. i got 60 points okay. >> all right. i'm just. >> do you want from. >> me i want answers is what i want. i want the truth. >> you can't handle the truth. there you go. you got it? >> yeah. you can't. now, i will tell you, david, in a spirit. i just want you to explain. >> i'm coming for you. >> spirit of goodness. yes. his. the notion of what he's saying about jensen and their partnership on autonomous. wow. because there are a lot of people who feel that their autonomous does not have what waymo has, which is the miles run, but. >> well, they don't and they have a different approach. and i

discussed that with musk obviously a few weeks ago when we sat down. can we play the approach? >> can we play it because it's seminal. >> that sound. but yeah, i mean we do have we do have elon obviously talking about the rollout in austin, which is going to begin june 22nd, and obviously in a very modest basis, but moving up from there pretty quickly. take a listen. >> we have cars driving 24 over seven with drivers in the cars, and we see essentially no interventions. so, you know, we want to be very careful with the first introduction of unsupervised full self-driving, meaning that there's the cars driving around with no one in it. right. so what? >> no one. no one behind a driver's. >> well, yes. and sometimes no one in it at all. right. if it's going to pick someone up. so the car has to be incredibly safe. >> and that's where they are obviously. he said, well, you know, 10 to 12 at first and there's some video and then they'll quickly ramp it up right

from there to as many as, you know, well, over a thousand. >> and jensen jensen's comments are the work that he, elon is doing with grok. his self-driving car is optimus. these are all every single one of them. world class, every single one of them revolutionary. every single one of them are going to be gigantic opportunities. and we're delighted. i'm delighted to be working with him, whom i rest my case. that's what the story is. this is a partnership that has made it so that i think that he's leapfrogged. >> well, it's powering the neural network that is powering the cars is i think. >> it's the future because that's. >> what i and he said, it's like i can't get away from nvidia chips now. by the way, he's also talking about xai there where he's talking about. >> but it was amazing during that conference call a couple of years ago where he said, like jensen's, he's extracting his monopolies, but he can't help it. you got to use it. and this sounds like a very good partnership. maybe there's like an era of peace that musk is trying to be. >> meanwhile, nvidia is only what, not that far off from an all time high. >> now you're talking. >> so you think last week, one

of the game theories of how the president could ice elon would be to have a federal policy that favors waymo's technology over musk. you do not think that's possible? >> well, i think that the david has talked about a particular of felon from new york who's not alive anymore, and that that may be a bridge too far when you tweet about it. >> oh, yes. the epstein thing was, once you go epstein, it's hard to come back. >> yeah. that is i mean, that's it's kind of the holy grail bad. yeah. but i do think that i think that you've got i want to own tesla. >> all right. and again, just to make it clear at the time after the tweetstorm from him and i said to you, you said, don't own it. now you say own it because why. >> okay. because when i saw that it didn't go down on this vicious series of cells, when i saw that we're that close to austin, and i think austin is going to go very well, because a lot of the problems are

autonomous. people feel he doesn't have it. and i think that right in your face, i think the humanoid is going to be gigantic. it's a 2030. you said it, i said it, but it's going to be ahead of that. i'm going to rent a humanoid in the next two years. i'm going to have you come over to the house. >> you're not going to have a humanoid to rent the next two years. i don't think it's going to be available. >> the x1. >> you can also get a 22 year old, you know, young worker to come over and help clean up after the after. >> the party. they're not going to be who they're going to be deported. >> who makes it? i got to find out who makes this. i think he takes one out. >> but listen, sam altman, the first million humanoid robots are going to make the old fashioned way, but then they can operate the entire supply chain. >> the humanoids. the reason why we think about that is there used to be little robots, and jensen said, our whole universe is made for people who are five 7 to 6 two, and we have to have robots that's size, so everything's normal. i am telling you, it's not a 2030, it's 2028, and i think you ought to put in for one. >> that's not long from now.

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ultimate stakeholder is tomorrow. nuveen invest like the future is watching. >> the opening bell is brought to you by nuveen invest like the future is watching. >> let's get to it. mad dash counting down an opening bell. it's two minutes away. what do you got? last quarter, starbucks. >> brian niccol. people thought he laid an egg. it was awful. stock broke to 75. we stuck by it. david and i just think this is what happens if you stick by quality management with a quality product this morning. the ftc has a piece that says starbucks has received a lot of interest, according to brian niccol, in the sale of a stake in the china business. and it's very, very bullish. and it talks about how there are a number of people who would like to buy a stake. the good news, they've got a lot of interest, a lot of interest. ted nichol, and i'm going to leave it to you on your

m&a front to see what what could this mean? but i think that it's very positive. >> yeah. if you can consolidate some sort of a value for the overall by selling declining stake. declining sales. but they have so many outlets in china they should they're still growing. >> but i thought that you would like to hear that, because what it says is that this man is taking action. he's not just sitting back and saying, i'm going to get my head beat in. so i really, really like this store. 7758 stores. i like the i like the call. i think it's a buy. >> all right. >> there you go. >> there you go. well. that well done, well done. >> it's not the only story today. there's a report that general mills is considering selling some of the china haagen-dazs business over there. >> has to do something. i saw a rare sell issued on general mills, but the smuckers yesterday was jarring. including the gigantic charge they took on hostess twinkies. mark smucker should not have.

>> bought that. and that stock continued to sell off as the session went along. >> at the same time, jim, the president just talked about reopening trade with china. strange time to be exiting, is it not? >> well, i don't know. i mean, maybe the market should be dramatically higher. and then we've got an ipo that's a defense oriented company. i mean, happy days. >> let's get the opening bell on the cnbc realtime exchange at the big board with spacex and defense company. voyager technology celebrating an ipo today. we'll talk with the ceo in about half an hour. >> that will be great. that interview. >> at the nasdaq celebrating an ipo blue water acquisition corp. as we get some breath filling in. jim, do you favor smaller cap names after the print today? >> well, i think it's really easy to say that because i was really flummoxed last night. i've been getting a lot of score cap, not a larger cap doing lightning round. it's clearly where people want to go. people

do want to. >> find the next nvidia. it may not be out there because nvidia is really pretty special. but i don't blame anyone for hunting. it's a very 19 and 90s like market. last night i spoke with chuck robbins. he is positioning himself as being now the backbone of the internet with ai, and remind me very much about john chambers being the backbone of the internet. you begin to get cisco having its big move, but you also know, david, you remember the customers, the customers of cisco, the telcos. it's got a little telco feel to it. i think. >> so you think there's a lot of momentum. >> lasts for a long time. the copper mountains last for a long time. >> yeah. >> and people make a lot of money and then they end. and all we can do is help people realize that not all of these companies are created equal. some are more equal than others. >> cisco has had a very strong year in the market. now, yes, we

have some 40. >> we talked to you about having both networking and security, which he argues not all of his rivals have. >> i don't know if we have a clip, but i thought it was really i think it's now i'm putting it as the cheapest a story there is. it's a combination of splunk and cisco. do we have anything? >> because we do. >> we do have some sound of a chuck robbins with jim. take a listen. >> we released a generative user lly build real time dashboards in their querying splunk, their querying the traditional network technology. and the whole vision was that we could bring all that to life in an easy way for our customers. and we launched a major part of that today at cisco live. >> seems interesting. carl. in the old days, there would be 15 companies that filed cisco, and they'd all raise numbers on this. now, it's not like that because cisco's large cap and people want to know, should i take a shot at gitlab down here is the time to buy datadog. this may be the moment for david, i

don't know. >> you don't know. >> i said i don't know. >> okay. >> the value added of you saying, i. >> told you numerous times, i'm here to repeat what you say back to you. that's my role. >> i am a robot. >> i repeat. >> what i say. oh good. >> here i watch you. cost 65,000. >> come up with a new idea for you, not new idea. this talen energy today. it was actually looking up a lot in the premarket. not up much now at all, but they signed another deal. this is all part of our continued coverage of ai and so many different ways, whether it's nvidia or whether it's openai or whether it's power for the new data centers that have yet to be built, but are going to be by like the likes of amazon, which has committed, what, $20 billion to the state of pennsylvania? well, you need that. you need pittsburgh for that, don't you? pittsburgh belt. and they sign a new deal, a new power purchase agreement with amazon that is for 2000mw

at their susquehanna site. amazon web services. they deliver by 2032 through 2042. so again, these are long term plans, long term projects. but of course, you need the power to power all the stuff that's going to be creating this age of abundance that is apparently coming, according to sam altman. and that will include a lot of energy. >> you're going from 2.5 growth to now. five rusty brazil. my guy on energy is just saying, listen, we do not have enough turbines, but anybody who has two turbines is going to work. i recommended talon last night as part of a wholesale belief that you know what you did. yeah. >> oh, wow. >> interesting said. yeah. talon is a good one. look. >> they're nuclear as well, right? >> i mean, yeah, yeah, i'm. i'm capitulating on the idea that we need more power. i just there's nothing i can do. anyone who's in it now, it's cheaper. >> nova i was. >> just it's the exact chart i just pulled up, jim. not more to

talk about the backdrop of some momentum softening yesterday. yeah. core. we've some other names. >> it was one of those moments where i said, is this the big rollover because it's had such a move. these are all parabolic moves at the same time. there isn't a day goes by that people don't say, i need more power. and she ivanova, by the way, is not building new plants to build. they're not doing that because everybody's been burned so many times. and yet this, you know, boy who cried wolf. but i think this is the time you want to do it. i think you have to build out here. this nvidia cannot save 145 to save his life. it just can't. 145. is it a readout? it can't it can't get there. >> it's actually it's a good excuse to talk a little bit of europe today, jim, because he does say that europe's getting religion on. i compute their capacity is going to go up by a factor of ten and two years. and that's on a week where blackstone committed more money to europe. netflix committed more money to europe. >> taiwan semi was the proxy. as that went up, you could buy

nvidia david, all anyone cares about and i think this is wrong. is that an nvidia chip be part of the package. >> the package of a trade deal with the eu? >> yes. that's all people care about. i think that's a big mistake. there's much more to it than that. but that is the focus. >> so very much unclear where our negotiations with the eu stand. last i can remember was the true social post from the president with some serious threats in it. >> we did hear from, i think, one eu official today. they expect a framework by the ninth, but a full deal is going to take more time. >> what's the appellate court went with the president. it's got to go to the supreme. >> he's got he still has the power under the law that. >> they. >> are currently using to assert that that that there's an emergency right to impose these tariffs. but it will be i think it's the end of july that that court is going to make a decision. >> but it's the supremes are going to have to decide. >> yeah, they may. then it may come to the supreme court as

well. but keep hearing it's india, it's south korea. those are the ones that are seen to be quite close in terms of deals. carl. i don't know though, what that really means. >> do you think that's why the market could be so buoyant that people expect deals. and get deals people buy? >> i mean, there is a there is a notion that the next three years will just be a series of good constructive talks and deferrals and exemptions and framework deals. and as long as it's not a 10% plus average rate, then who cares? >> i agree. >> look, all i want us is to be as good as the european countries. and i think the president uniquely must be saying, are you kidding me, spain? we can be every bit as good as spain. >> but july 9th is not that far away. no, again, as i'm very good at counting usually on a calendar, and that's when everything's supposed to go back up the night, you know. so how come the market is not what doesn't seem to be a concern?

>> not at all. >> well. >> not one bit. >> wells today does argue that if you're not seeing some more, at least frameworks by the ninth, then expect some more volatility. you disagree with that? >> i think that there's this fellow, this 100 ex on the other day. is this a spin off of basically goldman? >> goldman is a spin off of. >> what it. well it's a guy who was a partner at goldman. rob page. 100 x 1200 x. it's a research firm. and these numbers that talk about how people are are actually getting much more sanguine that they're getting much happier is reflected in this market. i think there's a level of hope that we haven't had this year because july 9th will come and it'll either go with a promise of extension or. >> we'll have deals, actual deals. >> well, we did have, you know, we had this big morgan stanley financials conference this week. yes. jamie dimon would not be a buyer of credit here yesterday, adding to some lost provisions.

comerica is on the tape now. some deposit trends have not been all that positive. >> but look let's go the other way. capital one, which is the issue, the larger issue of credit cards for people who are questionable credit, although not with richard fairbank, who's a lot smarter than we are. i mean, that stock is breaking out here. that's after the merger with discover financial. i still think that they can come up with a credit card that does not charge the restaurant, doesn't put a 3% charge. >> right, right. interesting. we're going to get the chime ipo tomorrow thinking of no fee kind of things and what they're trying to go after. be curious to see how that performs. given the recent success of ipos such as a core weave or circle or etoro although back to the broader market, guys. i mean, yesterday was a terrible day for momentum names such as a core. >> we've no. that's why i was really concerned. >> i'm looking at there was a 3.5% sell off in the momentum. that was first time since sort of 2016 you had that kind of a

reversal. people like what has been working, which is just buying because they keep going higher. >> well, what people wanted, frankly, they're buying the transport and buying j.b. hunt. say again, j.b. hunt, they're buying j.b. hunt, the most pedestrian of things, which i've got to tell you is really rather amazing. again, it's an indicator of people are very, very bullish. they think that there's going to be a return to trade, that they were too negative during this period. i think, you know, look at norfolk southern. the run in norfolk southern is just breathtaking. i just think that we are so the opposite of where we were. >> well, and everything changed. >> everything changed. liberation day turned may turn out to be the bottom. we may look at liberation day and say, you know, that was when they realized, wow, are we ever on the wrong track? the market has spoken. am wrong right now. i don't think i think the president would be reluctant to say that. maybe he'd say liberation day was one of the great buying opportunities of all time. >> he literally does make public stock calls. so there is that. >> i know remember, david, when

we were saying, look, it looks tough. and he said, buy everything. one of the greatest calls i've ever seen. it was a great call. i don't know why i've seen a call. >> he's got a future job at morgan stanley or something as a financial advisor. do you think so? >> i was thinking more robinhood. >> maybe robinhood also, by the way, on crypto. he knows crypto markets very well. >> gemini winklevoss. why not? >> yep. we got some audience metrics out of hood today looking at overall assets and subs. gym stocks. not really moving on it at the moment. >> look it's been such a run. they're doing they have a really great ira up. they have a great ira deal. if you switch over man they you know you got vlad tenev is sitting there thinking how can i take away everybody under 30 from every one of the firms? and all the rest of the firms are saying, well, he won't get us. he won't take those away. they are watching the future evaporate. >> can we get to an earnings mover, which is a name you definitely have talked about in

the past? chewy's getting getting hit today, down 11%. >> i'm surprised. >> after an earnings report that has not been well received. >> at 19, he called the bottom on the show. the stock has had a big run. >> it has had a big run. that is that. >> is true. i mean i find amazon cheaper now. what can i say. get the stuff from amazon. >> so what are you going to ask him tonight. >> well i just think look he's done a remarkable job. >> oh sorry. it's i'm not on mad money. what are you going to ask him? carl on the 11. anything you. >> talk about some. yeah. adoption trends. it's for every comment about the consumer though. there's a chewy chart. and then there's a dave and busters chart, which is up. >> there coming around. i would ask him, frankly about nvidia and how i fed nvidia using chewy. it was one. >> of the now we're talking about the dog. that can get very confusing for people. >> 2017 look at when look when nvidia was alive and kicking in 2017. that dog had horse sense. now dave buster's actually had a nice little run here. it's become a little bit more fat.

dave and buster and urban outfitters are the two outliers. people forgot about them. they left him for dead. and that's just wrong. >> urban gets upgraded over at baird today. urban should outperform. there's a target shareholder meeting. jim. there's a lulu meeting. lulu. the p e at a decade low. >> lulu is fury. i think lulu is really. i think i misjudged lulu. i misjudged the competition. >> i really. yeah, there's even more than fury. there are a lot of other ones as well. i mean, there's any number of these companies that have come along. >> i think target has to really start making a statement that we're going to lower prices. now. they're going to say they have low prices. they have to lower them to 2018. in the aisle, in every aisle, there has to be 2 or 3 items that are 2018. that's what they have to do. >> that's a rough chart. jill. today jim with a double miss. that's another tough. >> chart there. relevant. >> well is target irrelevant or no. >> they have to get themselves relevant by having a couple of items. each aisle that are below that have to come under walmart.

it can happen. yeah i don't i have. >> plenty on target. i mean it's a surprise. there hasn't been it hasn't been an activist there. is there an even. is there a play other than getting rid of the ceo? >> the play is to lower the prices. that's how they have to do. >> it, lower the prices. >> they have to. now i just get more traffic. i had an outfit on last night that has lowered the prices and is just crushing it. and that's casey's casey general. dave is laughing, but casey general is a convenience store that happens to have a breakfast pizza. that is darn good. the numbers are extraordinary. the stock has had an incredible run up 25% for the year. casey general is where people want to be. they only cater into rural territories, right? right. >> casey's general. breakfast pizza. >> why? because sam altman doesn't go there. you're not interested. >> in it? no, i'm not. i only listen to all things sam altman says. sam altman really connected with me. >> how about microsoft city? positive catalyst watch, right? is that where you're going. >> david catalyst watch that.

maybe azure. >> they basically say azure numbers are too low because of the opening. >> that was great. remember amy hood just told a great story cfo last. >> quarter i was going to sam this this i can't get away from this blog post. the 2030s may not be wildly different than now. people will still love their families, express their creativity, play games, and swim in lakes. swim in lakes. me and you. sam, i don't know. you must swim in lakes, which i do. >> as well. must have an existential crisis. every single. >> swimming in lakes is one of the things that i agree with you. guys on. >> again, sam. that's what i'm going to call you. >> from. now on. >> i did i. >> did want to get to actually a piece of news which was out yesterday involving me involving meta, one of the great movies, one of the great. well, you're. >> part of it, believe me. you've immortalized it again. that's a reference to casablanca in 1942. and who made casablanca? great, great director. michael. michael, i

have to tell you, when i look at. >> this time. >> is going to be. >> it's going to be the beginning of a beautiful. >> friendship about it. i think about it as time goes by when i look at you, because the robots are coming. >> they're coming. all right. and by the way, on that note, meta yesterday wanted to get back to this deal with scale. i mean, it's a what would be otherwise an enormous acquisition in and of itself. it's not obviously for the full company, 49%, 14.3 billion. but perhaps even more importantly, they take over a lot of the team, including, of course, the founder of scale ai, alexander wang, somebody i sat down with a couple of years ago when he was even younger than he is now. you know, at milken, we were talking there. now, this is a data labeling company, 100,000 contractors. they label images, they write sentences, type out stories that help help the ai llms and chatbots learn how to think and speak like humans. >> but he's a good amazon bought. >> this might have, but he's now going to meta. it's interesting

because you could say, well, it values the overall company scale ai at what, 28 plus billion dollars? wang, for his part, is getting, i think, as much as 3 billion from this. but then he obviously still has the ownership stake in the stump that's left. but he's not going to be running it, it would appear. and so what that's actually worth is far from clear at this point. they were on a $2 billion revenue run rate for this year, perhaps as much as a double the year a year later. but that becomes less clear. they're in the midst of a tender for $150 million. but seven investors were stepping up to tender for shares of employees. that's been canceled. and then of course, there's the meta side of this. it's a big, big acquisition, but it's not an acquisition, and it doesn't subject them to the regulatory scrutiny of an actual full out acquisition. so smart, jim, and yet they get this guy, they get the team and they own this company. as a result, when it appears really what they wanted was him and what he's got.

>> everybody needs to step up their game. i think he's i think that these models well look, he's llama. he's also a llama. yes. nvidia now down i'm telling you this is. >> we didn't mention google reportedly offering some buyouts to search and advertising staff or the journal piece about x threatening advertisers with a lawsuit if they don't buy ads on x. >> well, there you go. that's new. new david x. >> what about x? >> linda yaccarino. >> yeah, what about her? she's the ceo of x. yeah. >> threatening threatening advertisers. >> yes, yes. that's not the first time they've done that. >> my pen is from nvidia. it cost me about $20. i thought it was free. i was going to walk out with it, but it was too much like biff. right? it was too much like death of a salesman. >> not a dime a dozen. not a dime a dozen. you are. you are buffalo, man. >> you have? yeah. arthur

miller. >> arthur miller was so great. he's so great. >> yeah. as we go to break watch. >> bonds must be. >> paid to such a person. yes. watch. treasuries, ten year note auction at one. and then best house ways and means in just a few minutes. >> the bond report is brought to you by pimco, a global leader in active fixed income. >> do you want to know where to invest $1,000 right now? well, forget about ai, quantum computing, electric vehicles, cryptocurrencies, or robotics. a little known technology is projected to become roughly ten times bigger than all of these technologies combined. the world economic forum says that it's

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stop worrying. stop treading about the self-driving. they think they're a winner. and i think both these companies. i like both. i think doordash is terrific. it's going to be still further consolidator. but these are two of the companies along with reddit okay. along with with airbnb that came from a particular era of ipo of winners. and these are all ones i buy. >> how about tonight? >> okay. you know, i got a company. i mentioned it yesterday, cardinal health. these. it's not a middleman. everyone thinks it's just a middleman. jason holler is carving out a real place to help health to make health care, let's say, better, streamlined and cheaper. i just think this guy is terrific, and i'm happy to have him on the show. he's not a villain. hey, by the way, there was a downgrade of unh unitedhealth. it's time for that ceo to start appearing somewhere. he's in the bunker right now. the bunker is a bad place. >> yeah. speaking of appearing,

we're not going to be seeing you for a few days, right? >> well, not unless you go to vancouver. thank you, ryan reynolds, for coming up with a place for me to go. what? >> we're going to take a little time. a little island there. >> yeah. >> i am like your own version of alone. >> yeah, well, my kids are taking me for father's day. they do it every year. last year we went. we went to a dude ranch, and the year before we went to iceland. and this year, we're going to a place in vancouver. not to be. not to be mentioned. >> awesome. >> have a great time. really? yes, really. he already just said yes. ha, ha! >> you're the greatest. >> jim. we'll see you, hopefully soon. mad money tonight, 6 p.m. eastern time as the grind higher continues. dow's up 78. don't go anywhere. >> when you're the leader in disaster cleanup and restoration, how do you make like it never even happened. happen. let it rain. randy.

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i'm sara eisen with carl quintanilla and david faber live as always from post nine of the new york stock exchange. stocks are having another up day. it's a small rally given some of the big catalysts today, like word of a us-china trade deal. more benign inflation reporting the nasdaq is up 2/10 of a percent. healthcare actually the leading sector in the s&p right now. some of those names coming back. information technology consumer discretionary all doing well. it's materials staples and industrials that are negative in the s&p. as for treasuries reaction to the cpi report coming in softer than expected leading to a further rally in treasuries with yields lower, especially that policy sensitive two year yield below 4%. odds go up of a second rate cut this year. today, goldman sachs chief u.s. economist will join us with his first take on the morning cpi print and how it could factor into the fed's rate path. plus voyager technology, sometimes called the berkshire hathaway of space, getting ready to make its public debut right here at the new york stock

exchange. we're going to talk to the ceo ahead of the first trade. >> got some breaking news out of washington this morning. the treasury secretary gets set to testify at house ways and means after just returning from those trade talks in london. let's get to our eamon javers in washington with the latest morning eamon. >> yeah. good morning to you carl. treasury secretary may be a little bit jet lagged here this morning in washington after flying from london. after yesterday's meeting with the chinese delegation. we saw a post on social media this morning from the president. and there you see a live look in at the treasury secretary arriving in the house committee room there. we will hear from him, presumably his assessment of what happened in that session yesterday with the chinese delegation talks not over. we saw a post from the president on social media earlier this morning in which the president suggested that a deal of some kind has been crafted that has to go to the two leaders now, xi jinping and himself, in order to be ironed out. and you can bet

that the members of this committee are going to press treasury secretary besson for his assessment of what that deal is. the president suggested that there were some mining agreements, some magnets, agreements, rare earths, and also in exchange for allowing chinese students to stay at american universities, something the president said he's never been opposed to all along. we'll see if besson here gives any more detail on that. also on the docket, guys, today, a lot of members are going to want to know more details about this administration's plans for tax and spending. obviously, the ways and means committee is the tax committee on capitol hill. as you see that camera go a little wonky on us. you get the sense of the action in the room is everybody's getting settled in. so a lot of details here on tax planning that might be in the works as well. so we'll watch all that and bring it to you as we have it guys. >> some of his comments according to the wires this morning eamon talk about if

china will uphold its end of the initial geneva agreement. he says a big, beautiful rebalancing of u.s. and chinese economies is possible. he had the president on truth social talk about a reopening of trade. is that a is that a bit of whiplash for corporates that have been working anxiously to exit the china environment? >> yeah, i think it's a very confusing environment right now for corporate leaders who are dealing with supply chains that touch china. and that's just about everybody who deals in materials of any kind. right. so at this point, you just have to assume that this is a moving target. and it's not entirely clear where this is going to land. and so i think everybody in the economy, top to bottom, is watching these talks to see whether or not they can come up with some resolution and some predictable rules of the road for trade going forward. we don't know what's in this deal. we don't know if there's going to be a deal signed between the two leaders. there's a lot we don't know here, and that's why i think a lot of people are

going to be really watching over the next couple of minutes to see if he can give us any more clarity on that. >> yeah. i mean, you know, chips, obviously the chinese certainly want access to, to certain levels of, of semiconductor chips. nvidia had an entire class that they made for the chinese market called the h-20, which they are no longer able to sell there. so that will be interesting to see if the treasury secretary has anything to share on that front, eamon, as well. >> yeah, i mean, i think if you look at each category, you know, a lot of trade deals will be enormously detailed. you know hundreds of pages, line item after line item of individual goods that can be traded at what tariff, etc. this feels more like what we're going to get is a broad brush agreement between the two sides on a couple of points. and i think markets will welcome that if we get the details of it, just in the sense that any agreement at all between the two sides gives you a sense that this relationship is on a more stable footing

going forward and is not descending into some sort of global chaos. that would be reassuring, but i don't think we're going to get the hundreds of pages of detailed line items. i mean, they only had a couple of days of meetings here. not nearly enough time to hash that out in the kind of detail that we're used to historically of trade agreements between major partners. >> okay. thank you. eamon javers monitoring the treasury secretary on capitol hill. one thing that treasury secretary bessent is going to have some good answers for, especially from from democrats, is on inflation because we got the newest read on may inflation. and guess what, no inflation spike. everything came in below consensus. i mean, this is one that the white house has to be really happy with. overall, the monthly gain of 0.1% less than expected, no real inflation, overall core inflation, 0.1% less than expected. here's where some of the you know, if you pull it out where the sort of pressures come from fuel oil, electricity, medical care, commodities, food away from

home. so restaurants is still adding inflation. but still that was a smaller increase than we have seen in prior months. look at this. so gasoline we know used cars negative numbers on inflation on the monthly read apparel david. everyone was worried that the retailers were going to raise prices because of tariffs either not yet or not happening because demand is soft. and that's going to be a debate. and i pulled out some of the favorite food items that saw the most and least inflation on the month. so we're finally getting some deflation, thank god. down 2.7% on the month. frozen non-carbonated drinks. they saw a big spike over recent years because of crops like orange juice that had a big decrease. ice cream. me and you, i don't know, there's demand there. >> yeah, there's always going to be demand. >> there. that's on increase. but the bottom line is it's going to get harder and harder for fed chair powell and the folks at the fed to explain why they're on hold waiting for inflation, because it's just not happening. >> well, and to that point, the president out with a with a post saying cpi just out great

numbers fed should lower one full point would pay much less interest on debt coming due. so important. >> so guess what. today's number definitely backs him up on that front. and the fed can say oh well you know maybe the retailers are holding inventory still. so they haven't raised prices. maybe they're taking it on margins. maybe it's coming later. but they're data dependent. and what the data is showing right now is that there is not an inflationary spike, the effective tariff rate that went through, i mean, it maybe it didn't show up in april yet. >> a lot of these tariffs are not even effective yet. >> right. but but they are for china certainly. and they have been 10% on the rest of the world. i mean, we've heard all the companies complain about it and have to adjust some of the hit that they're taking on it. but there's another question here that we haven't really talked about, which is maybe demand is not as strong as we thought. and so, you know, that's putting downward pressure on prices. i'll just give you one more really important one that the fed is, is likely going to talk about next week in their meeting. super core remember super core. this was one that

fed chair powell said. we're watching really carefully its services ex housing because they can't really do anything about the housing inventories and everything like that. 0.06% monthly increase. that was very small. i mean, there was a time where these numbers were increasing 0.3, 0.4, 0.5. and that was worrisome because it was an economy that was overheated. we are just not seeing that right now. and i think it's more fodder for the president and for those who are saying the fed should cut rates, that's why the two year yield is moving lower. >> yeah. back below for today. i here to talk more about the print this morning at post nine. sorry sarah reed is goldman sachs chief u.s. economist david miracle joining us here. good to see you david. welcome. thanks. it's four months of missing the estimate. is sarah right about us misreading the impact of tariffs. i think it's possible that the tariff effect is a little bit smaller. in particular this month. >> we were only looking for a five basis point effect because we had seen the auction price data on cars looked fairly soft.

even though autos are something that's been hit with a with a large tariff. i think the other thing, though, that we're learning is that there are meaningful offsets to any potential tariff effect that we got this month and might get in coming months. in particular, i think you saw that in the shelter category, where for quite a while we've had this catch up inflation, keeping inflation a little bit elevated month to month as far as cpi prices catch up to kind of market prices, that should gradually go away. now these data can be a little bit erratic from month to month, but gradually we've seen that theme play out. so there are other forces that have brought inflation down for the last few years. i think they have a little bit more disinflationary momentum yet to give, and that will provide a partial offset to the tariff effects. >> is data quality a question given what bls has told some outside economists about their sampling abilities? >> i think if you had a, you know, ideal unlimited data set on rents, you'd probably see the shelter numbers moving a little bit more smoothly in the months

ahead. if they're not able to hire more people to go out and collect prices because of the hiring freeze, then i think that could eventually become a problem. it would limit the sample size that they can ultimately see. >> so how does fed chair powell explain his wait and see approach? now that we have seen meaningful deterioration in inflation for a while, it was that okay there was no progress. so he was just going to wait and see. but now we're seeing progress. so how does he explain that? >> i think this is a it's a reasonable month to have expected to see some tariff effects. some tariffs have been in place for a bit of time. and in 2019, one of the key takeaways from looking at category level data as the tariffs went into place was that the flow through happened pretty quickly. so it's not unreasonable to say this was a soft print. this is good news. this leans a little bit toward a smaller effect, but i suspect chair powell will be comfortable saying it is still very early. some of the tariffs that the white house. >> is going to look political. if he does that i mean, they don't want to look political,

right. but if they're going to say it's really early and we haven't seen the tariff effects yet, and but we're also data dependent and, but we're also restrictive, then they should be cutting now. >> well i guess i would say there doesn't seem to be a strong need in either direction at the moment. i mean, the labor market report has gradually shown slower job growth, probably for both supply and demand reasons. but the unemployment rate is still at 4.2%. the neither the labor market data nor the inflation data are yet screaming that we need an adjustment. so i suspect they'll say it's early to make a decision on the tariffs, especially because some of the tariffs the white house has talked about have not even been announced yet, let alone implemented yet, and that there are still risks on both sides. >> meanwhile, for the rest of fed speak, you had kugler saying you got to watch inflation first. you had goolsbee saying this might be the last vestige of pre tariff environment. do you think, do you think that tone changes once we get past the blackout window? >> possibly. i think you know again this is a reasonable timing to expect to see tariff effects. it's just that one

month probably isn't a good basis for drawing a firm conclusion on this. so i think if over the next two months we still haven't seen anything, then the lesson of 2019 would say, well, these things tend to show up pretty quickly. so if three months go by and you haven't seen much, then, you know, i think you'd probably meaningfully change your thoughts. >> and your general view has been there might be a one time effect, but it would soften quickly because of demand destruction. yes. >> that's right, that any tariff large enough to push inflation up quite a bit and make us anxious about inflation expectations probably also large enough to soften demand. and i don't see particularly high prospects for a prolonged bout of high inflation in a weaker economy. this is also a much less intense inflation rebound that we think is coming than what we went through in 2022. so it should be a lot scarier, a lot less scary than that experience. >> i mean, if you look at some of the i highlighted apparel because i thought that's where you would see it right the most. it's where it's where all the product is sourced abroad and they're paying higher rates. so

how do you explain what's happening there? and could it be a symptom of weaker consumer demand, where there's just more pressure on prices than pressure to raise prices? >> yeah, i would say our take from looking at the very detailed subcategories was mixed. you're right. apparel was softer, although their import prices had been down for quite a while. in other categories like appliances, it did look like they were somewhat above trend. that's another example of something where a lot of what we consume in the united states is imported, and we're subject to tariffs. so, you know, mixed evidence. i wouldn't say there was zero effect, but maybe on the small side of what we're expecting in coming months. >> so you mentioned the labor market. are you what's your where do you think? i think trying to think of your estimates for nonfarm in the back half of the year, bottoming around 80 somewhere around there. >> yeah i think we will see a continued slowing both for supply and demand reasons. we just had an enormous number of people coming into the country a year and a half ago. that meant more workers, more potential job

growth. immigration is down enormously over the last year and a half. so that's kind of the labor supply angle on all of it. and i suspect we will also see some softness in in companies interest in hiring amidst all of the tariff uncertainty. we're not penciling in anything catastrophic there, but i think that too will slow the rate of payroll growth. >> do you change your outlook for the fed at all two cuts now priced in more fully after today's report? >> yeah. our thinking is that the peak tariff effects will occur sort of from june to august. i think december is not too early. so that's our forecast. it's possible they could go earlier, but i suspect some of the more hawkish, more concerned fed officials will want to see a little bit more kind of post tariff calming down before they're willing to go ahead. >> all right. david, thank you for joining us. really good to get your take first here on cpi from goldman. >> about 30 minutes into the trading session three big movers we're watching today nvidia shares hovering near some record

highs after a speech from jensen wong overnight at a tech conference in paris. he said quantum computing is at an inflection point and announced a new partnership with a slew of telecom companies to build ai infrastructure there. lockheed martin under some pressure after the pentagon slashed its request for f-35 planes in half, asking for 24 planes in its procurement request to congress, down from 48, and shares of talen energy higher. after the company announced this morning it signed an expanded nuclear energy agreement with amazon and will supply electricity from one of its pennsylvania plants to aws data centers. >> here's our roadmap now for you for the rest of the hour. elon musk walking back some of his sharpest criticisms of president trump as tesla stock makes a recovery from last week's drop. details ahead. >> plus, meta scales up its ai ambitions. this is investing $14.3 to get a 49% stake in alexander wang's scale ai. we're going to talk about where this move could position meta, and of course, that growing race for ai dominance. >> and not of this world ipo

space company voyager technologies makes its debut here at the nyse. ceo dylan taylor is going to join us live taylor is going to join us live after the break as (♪♪) you can fit a lot of vacation into a weekend. (♪♪) book your next weekend getaway with vrbo. (♪♪) (tony) the grind catches up book your next weekend with everyone--even me. that's why i trust qunol ultra high absorption turmeric to support my joint health. it's the number one doctor recommended form of turmeric. it helps you keep doing the things you love at every age. qunol. the brand i trust. on a measurable level, i'm being successful. i have a couple stocks, but i don't have many of

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you think those phone guys will ever figure out how to keep 5g home internet from slowing down during peak hours? their customers have to share a wireless signal with everyone in their area. oooh. -you know, it's kinda like when you bring a really big cake for your birthday, and then there is only a piece left for the birthday girl. well, wish her a happy birthday. happy birthday... -it's... ...to her. -no, it's me. have your cake and eat it, too. don't settle for t-mobile or verizon 5g home internet. get super fast xfinity internet you don't have to share. forty's going to be my year. so easy. roses are available at garden centers. >> some breaking news on disney and nbc universal. let's get to

julia. boorstin. hey, julia. >> hey, carl. disney and nbc universal, which is cnbc's parent company, are filing a joint suit against ai company midjourney alleging copyright infringement and demanding a jury trial. the complaint, which was filed just now, includes images that midjourney generated with characters including lucasfilm's darth vader and from universal illumination's minions disney and nbcu, saying they asked midjourney to stop infringing on their copyrighted works and that midjourney ignored their requests. now, this is the most high profile legal action we've seen in entertainment company take to protect its ip. disney saying, quote, our world class ip is built on decades of financial investment, creativity and innovation investments only made possible by the incentives embodied in copyright law that give creators the exclusive right to profit from their works. saying we are bullish on the promise of ai technology and optimistic about how it can be used responsibly, responsibly, as a tool to further human

creativity. but piracy is piracy, and the fact that it's done by an ai company does not make it any less infringing. so we're going to have to see how midjourney responds. we're reaching out to them now, but this suit could set a key precedent for ai companies and entertainment companies going forward. back over to you, carl. >> julie, we appreciate that adds one more wrinkle to the ai debate. that's our julia boorstin. meantime, voyager technologies, a defense and aerospace contractor making its public debut here at the new york stock exchange. company provides space to earth and space to space services for civil, commercial and government missions. our morgan brennan joins us this morning with the ceo, dylan taylor. good morning morgan. >> good morning carl. and yes, that's right i'm here at post five with dylan taylor of voyager technologies. this is a big moment not just for voyager but also for space and defense tech overall, upsized offering oversubscribed, priced higher than the expected range here. you and i have talked about this goal for years now of going public in a traditional ipo,

which is not something we typically see with space companies. why? why now? >> the timing is good. that was feedback from the investors. and i think our order book reflected that in the process. but also i think thematically some things have come together. obviously space infrastructure is a priority as we look to replace the international space station, for example, and then on the national security and defense side of things, whether it's golden dome or other security protocols that we're putting in place as a nation, we play right at the center of that. and so i think right company at the right time and the right place. >> how big is the opportunity for golden dome voyager? >> we don't know exactly. right. the president's budget request is circa 125 billion. i think we will play in that in a couple of different ways. we have proprietary propulsion technology that factors into smart missile defense. we also have some optical navigation technology that plays also some radiation hardened computers that we put on certain smart

systems as well. so there's a few different ways that we can integrate into those systems, but we don't know exactly how big the opportunity is quite yet. >> your revenue last year was split between defense and space. your roots are in commercial space. folks perhaps know you best for starlab, which is the commercial space station that you're developing in part for nasa when es is decommissioned. guys, lay out the business case for commercial space stations, because just the fact that you're not going to be publicly traded company and this is a key future business for you, i don't think people fully understand the business opportunities here. >> it's enormous. so if you just look at the es spend today, it's around $5 billion, maybe a little bit more. that includes nasa but also other partners like european space agency, japanese space agency and others. so if you just take that cost base and invert it, that becomes the commercial revenue opportunity. and that's just for the base case. so if you look at all the other opportunities you could do in microgravity biopharma research, for example, space manufacturing, data centers in space, all of that.

and you and i have talked in the past about space x, and i remember a conversation where we talked about launch demand and we said, well, space is going to launch all the rocket, all the payloads to space in two months of the year and the other ten months of the year. they're going to be, you know, time on their hands. and of course, that's not what happened because it didn't address demand. it created demand. commercial space station is very similar. when we have a commercial model, there'll be many, many more opportunities to monetize microgravity. and so that's really where we're playing in that, in that part of the field. >> speaking of spacex, obviously it's a very public feud between elon musk and president trump last week, and it highlighted just how far along spacex is versus other parts of the space industry, whether it's starlink with the internet connection or the falcon rockets and their capability to bring astronauts to space, the fact that they have a contract to help deorbit the international space station, how do you see the space economy and the competitive landscape evolving? >> well, i'm very bullish on

spacex is a key player. they have key capabilities, but we have blue origin. we have rocket lab, we have firefly. we have other new entrants. and then also in europe they're trying to build a launch capability. japanese and india have a launch capability. so i'm actually very bullish about the future of launch. and then of course what that enables is all these great hardware and infrastructure projects. and that's really where we play. so we're not playing in launch. we're playing in the infrastructure layer being built in space. >> nasa is your single biggest customer. nasa is. being shook up right now. the administrator nomination was pulled. how are you navigating those dynamics at that agency. >> focused on delivering on our commitments. so we've achieved 23 technical milestones on starlab, our space station program. we're going to continue to execute on that. nasa will figure out, you know, who the new administrator is, but i think it will be, you know, for the most part, steady as it goes. and if you if you even look at the president's

so-called skinny budget, it was very bullish for commercial leo destinations, which is the commercial space station effort. so we're feeling very good about that opportunity there. and leadership matters. the nasa administrator will matter. but right now we're just focusing on our customers. >> we saw it yesterday with andrew topping the cnbc disruptor list. we see it with you going public with voyager today. it does seem that commercial space and also with publicly traded stocks already, but commercial space and defense tech have moved into the mainstream. how much is policy pushing this forward? >> i think policy matters and certainly sentiment matters. and i think what recognition is happening is that the technology has matured. so the way we like to talk about voyager is a technology and innovation platform disrupting. and i think leaning into that technology and innovation piece is critical. so i think people now understand that the technology has matured to a level where you can actually have mission critical solutions that work the first time, every time. and because the tech has matured, i think the companies are now ready for

prime time. >> all right. dylan taylor, thank you so much. thanks. voyager technologies sarah. >> very exciting, morgan, to think about the business opportunities for spacex, but also more of an ipo market is opening. that's morgan brennan with the head of voyager technology. still to come, elon musk backtracks in his feud with president trump and tesla stock recovers. what investors need to know and what the street is saying about all of it next. plus, treasury secretary scott besson is testifying before the house ways and means committee this morning. we're going to bring you the headlines as we get them. squawk on the street. we'll be right back. >> at avocado green mattress. we know that we all deserve a little rest. that's why we're promoting better sleep this season with our certified organic mattresses and bedding. all made with natural, luxurious materials for a healthier planet and healthier you. start your sleep trial today at avocado

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every day. i'm checking the markets throughout the trading session, working the phones, talking to sources to share insights, information and all of the details that you need to make money. >> closing bell overtime for eastern and streaming on cnbc plus. >> welcome back to squawk on the street. elon musk walking back some of the sharpest digs in his public feud with the president, writing in a post on x earlier this morning i regret some of my posts about president donald trump last week. they went too far. musk has removed some of the most inflammatory things he posted, including an agreement with someone who said trump should be impeached. a post saying the president's name appeared in the jeffrey epstein files. street's happy about the cooling attentions. dan ives from wedbush today writes, we believe this is an important step to the two becoming friends again and allies on a number of topics. shares now up four days

in a row. they have recouped their losses since the spat began last week, when the stock bottomed around two. 73. so adding almost 60 bucks. >> yeah, i think it remains to be clear whatsoever what the nature of the relationship, if any, will be between the president and elon musk. of course, at the time we remarked on seemed to be certainly ill advised. many of the comments that mr. musk said taking on the president in the way that he did, given so much at stake for his companies in terms of just how connected they are to the federal government. sara. yeah, whether it be spacex, of course, and nasa or the need for federal autonomous rules, for example, as they start to roll out their autonomous efforts. >> yeah. and i mean, that explains the stock reaction, right? what investors now can focus on robotaxis and optimus robots, and not on how miserable a trump administration could make life for musk, whether it's fuel efficiency standards or self-driving regulations or, you know, we've already dealt with the tax credits thing, but, you

know, there's so many not just government contracts, but government rules. i did note that president trump said on a podcast this week that he has no hard feelings toward musk and that he could see the pair repairing their relationship. so who knows, maybe there's more. but clearly investors are feeling better about the situation and the fact that, you know, trump did not pile on too hard after that first threat of government contracts. so that was what, 15% decline last week? $34 billion in the net worth of mr. musk coming back. >> yeah 150 billion market cap. we'll see. we'll see to what degree the president's at least willing to forget, maybe forgive. that's to be determined. >> no it is. and escalation can occur very quickly, of course, as we know as well with both of these gentlemen. all right, let's get a news update. now, savannah now has that for us. savannah. >> hey, david, good morning to you. a federal appeals court will hear arguments from president trump's legal team today in a bid to toss out his hush money conviction. the three

judge panel will consider whether to move his case from state to federal court, where the president could then try to have the verdict thrown out on presidential immunity grounds. a jury convicted him last may of falsifying business records of hush money payments to adult actress stormy daniels to allegedly cover up an affair. meanwhile, a government watchdog group in wisconsin filed a lawsuit today to stop elon musk from offering cash payments to voters in the state ever again, calling them a bribe. it comes after he handed out three $1 million checks to voters this spring, ahead of its hotly contested supreme court race. his super pac also handed out $100 to voters, who signed a petition decrying activist judges. and south korea says it will give north korea a break on blasting propaganda across the border. in an effort to ease tensions, seoul's military shut down loudspeakers today that have been broadcasting anti-north korea messages. carl,

i'll send it back to you. >> silvana. thanks. treasury secretary besson testifying before house ways and means right now. the new details from that hearing in a moment. plus meta reportedly paying $14 billion for this 49% stake in scale i. we'll talk about what that means for the ai arms race later on this hour. >> opportunities can be hard to find, like catching lightning in a bottle in uncertain times, it's tempting to retreat or simply wait and see. at cme group, we empower those who act. we deliver tools to help manage risk and capture opportunities in every market climate, across every major asset class. to seize each possibility at precisely the right moment. cme group opportunity is everywhere. >> ag1. one of our values is the continuous pursuit of excellence. for over 15 years, we have upgraded ag1, adding

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honest, the decks have made it even better. i'm so happy with it. >> well, the news today, president trump announcing on truth social that there's a deal between the us and china after trade negotiations. we're going to talk this just in with one of the chief negotiators, the commerce secretary, howard lutnick, first on cnbc, 11 a.m. eastern time. we'll get a full readout of what those talks between the us and china were about, what was agreed to and where we all go from here. some some questions remain, despite

the president posting positively, including saying, you know, part of the deal was that they would give us the minerals and we would allow the chinese students. but there are still some questions, david, including what you brought up, which is the export controls on chips and where we stand there. >> yeah, and obviously any number of other negotiations that continue, whether it be with japan, south korea, india, which the market is also interested in. >> yea. july 9th, july 9th, only a few weeks away. >> yeah. we were talking about it earlier. all right. something else we were talking about earlier is meta scaling up its ai ambitions, investing 14.3 billion for a 49% stake in scale ai. that brings the company's co-founder, alexander wang, on board at meta, and his efforts are going to be to try and pull them ahead in the ai race. let's bring in robert leathern to discuss. he's a former vp of product at both meta and google. first, robert, love to get your take on meta's decision here. you know, they're not taking control, but they obviously are making significant acquisition,

end quote, so to speak, here. >> yeah. my understanding is they the companies know each other pretty well. i think meta has been working with for quite some time on labeling and other things. met actually invested in the company previously. so obviously they believe that the folks over there can really help them accelerate their doing in ai. after some recent disappointments and some some progress that might be lagging some of the competitors. >> yeah, it's interesting in that i mean, they're bringing wang over, obviously, and they're paying a big premium for 49% of his company. do you have any sense? i don't know if you know him or familiar with the work that he's done or what his ambitions will be over there, or where meta feels as though it has not been perhaps succeeding so far in the ai race. >> yeah, so a couple of things. i think meta really doesn't have the kind of reasoning models that some of the other companies

like openai have yet. so clearly that's going to be really important. and those are also very compute intensive. and so there's going to be a real continuing pressure to scale up on the data center side, which we obviously have have heard about before. when it comes to that kind of scaling, i think it's going to be important to get help from the us administration, from obviously, other nation states. so i think they're i know, scale ai and their ceo have been very hawkish on china. they've talked about this publicly, that it's really a race between the us and china in many respects for these technologies. and so it might be that meta also saw that as a potential benefit to working closely together with alexander wang and the and the company and taking this, this position in the company. that could also be one of the benefits of doing so. >> who's who's going to be most scared or threatened by this announcement? between meta and scale ai? >> well, i think certainly scale

ai has other big ai companies as its customers. and so it might be that there's, you know, they're concerned about confidentiality or other things in that respect going forward. it remains to be seen what that will look like, what that will look like for them. and i think and i think that's going to be, you know, openai, google, etc. but certainly it's a very important player and a very important component in the ai race. although of course, so is the whole data center side of side of things as well. >> yeah. and finally, speaking of ai, it's only a day or so ago that we heard from apple or a couple of days ago, not much there in terms of additions to their ai strategy. sort of curious as to your thoughts about where they stand right now. >> i think they're in a tough spot. they clearly are lagging behind in many respects. they do have obviously, the device as a very important component. they made some announcements about

giving developers access to on device llms, which i think is something folks have been looking for and i think will be helpful for developers. but but clearly the package of announcements let folks down a little bit was it was a little bit disappointing. so i do think they still have a lot of work to do because of their enormous footprint with consumers and the real importance of the device when it comes to how people will access these services. so i think they have a lot to do, and hopefully they'll be doing a lot more in the future. >> yeah, well, we're all waiting. rob, thank you for your time. appreciate it. thank you. >> coming up, the latest from treasury secretary scott besson's hearing on capitol hill going on right now ahead of a big interview we've got for you at the top of the hour. commerce secretary howard lutnick joins us live. plus, cnbc's top states for business rankings just around the corner. how the competitive landscape has transformed and what tariffs have to do with it. that's later on.

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again. >> treasury secretary scott bessant testifying before the house ways and means committee this hour. eamon javers has been listening in, monitoring and joins us with the headlines. eamon. yeah, yeah david. that's right. you can see that live look in there of the hearing in progress. treasury secretary besson has been giving a bit of an update on the china negotiations, as well as pitching the president's tax bill, which is the president refers to it as the one big beautiful bill. treasury secretary besson here calling it triple b, that's the new nickname for the tax legislation as it moves on capitol hill. treasury secretary besson here saying that the chinese need to be a reliable partner in these negotiations, and also saying that he's not going to allow china to export its way to prosperity. he also talked about the negotiations in geneva and the bearing that they have now on the negotiations that are taking place in london. here's what he said. >> if china will course correct by upholding its end of the

initial trade agreement we outlined in geneva. and i believe after our talks in london, they will then the rebalancing of the world's largest, two largest economies is possible. >> he referred to it in his written remarks as one big, beautiful rebalancing. so i guess now we have a one big, beautiful bill, one big beautiful rebalancing. the treasury secretary is saying that the administration's policies here are responsible for relatively low inflation and solid recent stock market performance. and he's urging the committee here to move forward with the president's bill and obviously, updating them a little bit here on where the where negotiations are with china. guys, back over to you. >> and what do we know about the agreed upon geneva deal that they're all pointing to china honoring. >> that's what we don't know. i mean, that's the big question here, right? and what was the what was the agreement, if any, in london? i mean, you saw the president's post on social media earlier today in which he said,

we have a framework for a deal that will be signed by xi jinping and himself, president trump. what we don't know is what was agreed to there. the president saying in social media that there are agreements related to magnets, agreements related to rare earth material, also agreements related to chinese students in the united states. but that's kind of all we know publicly about what's been struck in terms of a deal in london. we don't have anything in writing, and we don't have any indication of when anything might be signed between these two countries, or if anything will be signed, or if this is just sort of a handshake agreement to continue on, you know, post geneva. it's really unclear right now. and i think that's why lawmakers are trying to press secretary besson up on capitol hill to get a little bit more detail. >> right. there's you know, there's clarity on what happened in london. there's still lingering on clarity on where we stand legally binding wise, eamon, with the uk and then who's first in line for another framework, whether that's india or possibly japan, although they continue to talk tough about

autos. >> yeah. secretary besson just said that a number of countries have come to the united states with what he calls unbelievably good offers in terms of trade, and suggested that they are going to have more trade deals. but no evidence of sort of who that would be when that's coming. you know what those trade deals will consist of? just saying that this is going to be a successful effort here. and going back over 40 years, the secretary laying out the history of trade in the us and blaming his predecessors as treasury secretaries or previous presidents for allowing an unbalanced trade system to develop in the world. that hurt american workers, and saying that this administration is determined to fix all that. >> indeed. well, for now, the market's definitely giving all of this the benefit of the doubt as we grind a little bit higher here eamon. we'll talk soon eamon javers in washington. speaking of all of that coming up in a few moments, a first on cnbc interview with the commerce secretary. howard lutnick will talk about the china trade talks. as the president says a deal is done and that the

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available at garden centers. >> less than a month away from the reveal of cnbc's 2025 top state for business, it's our 19th year, and big changes in washington might have a major impact on this year's rankings. our scott cohn is here to tell us how the list is shaping up and how it's accounting scott, for this changing world. good to see you again. yeah. >> good to see you too. yeah. there are a few changes out there, aren't there? and you know, when we built this study way back in 2007, we designed it to be able to adapt to change. and this year really puts that design, that principle to the test. so remember how it works. we start with ten broad categories of competitiveness. those are the same from year to year. but then we weight them to reflect what matters most what the states and companies are talking about this year. they are talking about the economy in these uncertain times. so that

carries the most weight, edging out infrastructure, which was the top category last year. we look at things like growth, to be sure, but this year we're also factoring in the potential impacts of tariffs and federal job cuts. that is new this year. hiring may have slowed, but we still have a worker shortage. so workforce remains important. cost of doing business moves up as inflation fears persist. even with today's number and a lot more talk this year about business friendliness, we do still look at quality of life. it carries a little less weight, kind of along with workforce is hiring slows in technology and innovation. we're factoring in the potential impact of federal research cuts. that's very different from state to state. that's followed by education, access to capital and the cost of living. we'll be crisscrossing the country in the coming weeks to tell you more about all these issues. and we wind up, as we always do in this year's top state. you'll be able to see where your state ranks follow our journey. read all about it, how we do all this, the details of our methodology at top states. cnbc.com. >> you're doing this at a time where it's a pretty raucous debate about the federal

government, and especially blue states watching the situation in la. and then there's the issue of higher education, which of course is always been a huge draw, at least at the city level. right. >> right, right. that's that's important. and particularly the research grants, you know, every year in our technology and innovation category, which seems to be picking up more, more steam, we look at grants. that was one of the ways that we've measured it. well, now we had to also look at it as a negative and look at what what states are doing on their own to fund research and development. so we have to add things like that in there in that all important economy category, we have to look at the impact of tariffs and the impact of budget cuts and how that might slow some states. but again, it could also be opportunities for others. once site selection consultant i talked to said busiest time in 30 years. >> i just wanted to stop you on the tariffs. so you're looking at what states that export more or import more. >> states with exposure to international trade, states with more exposure to china. and we

have some, some, some data that we've had done exclusively for us for this study. we'll be talking more about this next week. we're going to be at the port of oakland. and we'll talk a little bit about the ups and downs of that, because again, it's there's some opportunity. clearly we're going to talk to a ceo who's stepping up his search for a us location, in part because of the tariffs. so there's things like that. but also there is the downside to it. it's really an interesting year that way. >> and what about i guess migration or immigration or the crackdown? a trained and available workforce has to be an important component as well. right? >> right. workforce is interestingly not as important as it was in recent years. a couple years for a couple of years there, it was the top category and everything was all about people. well, now we have slowing hiring. so there's a little there's still we're still about a million jobs short of what we need in this economy. but hiring is slowing. i is picking up some of the slack as well. so workforce is still very, very important. and it probably always will be just demographically but not quite as

important this year. but the whole immigration crackdown plays into that. it's, you know, for, for however you feel about it, it does impact the number of available workers. >> it's going to be good to see more of you in the coming weeks. i know you're busy 19 years. >> this is yeah, 19 years. >> 2007 amazing scott. thanks. talk soon scott cohen coming up next hour, a can't miss interview with the commerce secretary, howard lutnick, fresh off of those talks in london with china. that conversation is coming up after this break. >> this is a story about the one the untrained eye may not see the one as extraordinary, but her goals aren't easy. she fixes, she manages, she

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oh, he's a good boy. audiences give, 'how to train your dragon' an a. oh. it's... good wednesday morning. welcome to money movers. i'm carl quintanilla with sara eisen at post nine of the new york stock exchange today quote done deal. the president says china will supply rare earths as u.s. and chinese negotiators reach a framework to restore a trade truce and de-escalate some of these economic tensions. we'll talk about it with the commerce secretary, fresh back from those london talks. >> plus, chewy shares are tumbling amid concerns about shrinking margins after a healthy run up in the past year. we are joined by the ceo sumit singh in just a few minutes. >> and quantum computing stocks defini