nvidia and amd sales to china are in trouble both companies were warned by the u.s. government to stop the export of some ai chips to china. nvidia is applying for a license to continue some exports but unclear whether the u.s. will grant an exemption nvidia and amd plunging on the back of this announcement and the whole chip sector is getting dragged along. joining us is harsh kumar. you were able to speak with management what did you learn about how big of a deal this is? >> sara, thank you for having us on your show so about five days ago on august 26th, nvidia got a letter from the u.s. government saying that the latest chips may not be sold to the chinese customers of course nvidia sells these chips to china like alibaba, et cetera and such. and so this was a pretty big blow to a company that had already seen its gaming business get eviscerated from the consumer backing offand excessive inventory. so now what that means is the beloved data center business was now coming under pressure. investors love the data center business it's what they like about the company

shares of amd and nvidia confirming u.s. officials ordered them to cease importing types of chips used in ai to china. amd telling clients the policy shift will likely not have a material impact to business. nvidia could lose $400 million of sales in china in the quarter. that has contributed to the weakness in futures and particularly to the nasdaq which is down the most of the major averages stocks down 4% or 5% the other thing to contribute to negativity in the futures is tradeo overseas. we saw hong kong down 2% nikkei down 5% shanghai down 0.5% with latest lockdown in china coming in a moment australia down 2% and this comes after a negative month of august for china. let's look at european trade which opened briefly, but hasn't got better during the course of the first few hours of trade we see europe down over 1% close to 1.5% now. 1.4% for all three of the biggest markets. that comes off a bad month for august stoxx 600 down 5.3%. time now for the top corporate stories and silvana henao joins us now good morning >> v

to pick up shares of those companies. >> well, nvidia's got to be so much more than gaming. so much more than graphics right? even more than data center at this point to reach that next level. dawn great job leading this company from being an intel-dominated also ram into being a giant in the industry. once that arm acquisition got scuttled, i think there are continuing questions how it becomes more of a platform driven not just by the chip cycle but by software as well, and so that narrative has to emerge in this environment as well. >> yeah. a great point. people tried to argue earlier in the year, look, maybe if they flush out the gaming channel, they could reset like in 2018. workloads changed so much, jon, it's not just about having the best chips you've got to have buildouts beyond that. clearly what he's working on. >> speaking of chips and buildouts, domestic manufacturers seeing a big windfall from the chips act, but where are the workers? live from intel's headquarters, at least one of its facilities, in chandler, arizona, i should say. joining us with more kri kri

nvidia and amd amd told to stop selling ai chips to china. shares take a hit at the open. >> and campbell's soup with a forecast mark clouse will join us in a few minutes. and goldman sachs says inflation has peaked but futures fall. first trading day of september investors continue to worry about the fed. >> i said inflation peaked and i was ridiculed. >> i know that i know that. >> this morning, jim, 3.52 is what everybody is talking about. >> unbelievable. i have to tell you when you think about it, for our audience out there, for fixed income, hatch your money >> 2007, we haven't seen 3.5% since 2007 >> i'm giving people advice here what are you doing >> i'm pointing out it's the first time in 15 years you've seen yields like that on the 2-year i'm doing the same thing >> mark chase of the treasury curve. >> okay. >> i am telling you i put half of the cash that i have since my wife told me i had to sell a lot of stuff into this especially when mester went nuts saying we're going to 4.00%. >> four and change >> i think this is your piece o

then to have got the chip challenge outlined by nvidia today. those which -- those shares up 10.5% him kriti: some major ripple effects in the broader benchmarks. ahead of friday's jobs report, we talked about what the fed is looking for in the data. >> the thing is the labor market. we are seeing supply and demand. the fed does not necessarily want to see the unemployment rate go up. that is not what central banks want, but in this instance, we keep hearing about a type labor market and a market at unhealthy levels. we are trying to figure out how can the fed orchestrate rate hike cycles where there is still positive growth and unemployment goes up but not by much. jon: let's get from more insight from jennifer of the more capital markets. what is the fed to do? how are you thinking about the strategy from here. nvidia the -- jennifer: i bring trust any central banker right now. we are having a strong jobs report with the economy but it means the federal have to keep tightening further. if it is a weak figure that we see tomorrow, that is good

i'm a big believer in nvidia long term. ist it's a power house all stocks do in the end have valuation issues if they haven't come down from where they were a couple years ago today nvidia held the gtc developer conference which came with a slew of new product announcements. i think they can tell long term story better than i can. let's check in with the founder of visionary ceo of nvidia welcome back to "mad money." >> jim, great to see ya. >> okay. you unveiled some devices today that i think could reignite gaming, which we know has kind of gotten in a lull. can you explain how that's possible and what we will see when we get to use these chips >> several things. first, the gaming market, the end market is actually still good the last couple of quarters because we had so much inventory, we decided to reduce the sell into the channel of our existing products so that we could allow channel inventory to normalize before we launch our new generational product called ada. today we announced ada love lal lace it is a brand-new

nvidia also did. what is going on their? >> what happened was the us government basically essentially imposed restrictions on nvidia's ability to select ice chips to russia and china. it amounted to another piece, another straw in the camel's back of russia, china us tensions. the two largest economies in the world picking at each other and chips at the center of it. we worry about taiwan semi after speaker pelosi went to visit the country. nvidia is caught in the middle of it. it has been a terrible year pushing stock 53% year to date. carleton: it is not just geopolitics driving the move, what else are you seeing? >> a few things. for nvidia specifically analysts were expecting 8.5 million in third-quarter revenue. they said it will be 5.9 million, a huge missed. miss. one of the things we learned, crypto mining applications where nvidia was sending its chips, i understood, our colleague kim is all over this. you have semi conductor shortage we've been talking about for years. things are getting better at the margin. the r

the news hitting nvidia at a time the company is facing a setback in data center sales growing but at a decelerating pace >> down nearly 30% of the month. kristina, thank you so much. investors waiting tomorrow's big jobs report. steve liesman with the good and the bad wall street wants to see. s what the consensus >> reporter: another strong jobs report is expected tomorrow, the concern for markets as you say they're looking for at least some softness and slack to develop in the jobs market that would give the fed comfort that inflationary pressures, at least from the labor supply standpoint, are easing the consensus 18,000 jobs, that is down from the half million plus but still above trend wages pretty healthy up 0.4% to an annual rate of 5.3% there was, i guess, unfortunately here, again, some good jobs news today jobsless claims down for the third straight week. the ism manufacturing index it rose to its highest level since january. markets pricing for the peak funds rate to rise to 3.97% up from around 3.80 as the bond and stock market look to be taking seriously the message it w

low brenda, i know you own nvidia. outside of that one, if you own nvidia, you must be watching micron, an important name like that pretty closely? >> absolutely, but i think with this sector, with the chip sector in general, there's a lot of bad news that's already out we know there are a lot of inventory problems and markets slowing in a lot of cases. bad news is out. i think if you're going to be in the group, it's best to look for names like an nvidia, very high quality, differentiated company within the sector. stock is down more than 60% this year those are the kind of opportunities to consider with this sort of >> you used to own micron? >> i did i did. and you know, people think it's a growth stock it's not a commodity stock sure, they have some growth products, but they're very sensitive to the economy look, when i sold the stock, which was higher, i said, man, am i making a mistake, and clearly, i wasn't. in fact, any of the semis last sold, which were down big-time -- sky works down .2 and sold it, look at i

and china the sector led lower by nvidia after the government imposed new restrictions on the sale of computer chips to the world's second largest economy that prompted our next guest to trim his price target on nvidia from to ten to 180 let's hear it from the analyst behind that cut. stacy rasgon welcome back good to see you twice in one week. >> i figured i'd give cramer one more chance to criticize my fashion sense. >> we're delighted you're here you look good. >> thank you >> what impact are these regulations likely to have to nvidia's revenues? >> so the direct impact they kind of quantify it's $400 million in the current quarter. we kind of know where they were guiding data center and it's 10% and maybe low double-digit percentage of their data center revenue. so that is not trivial, but it is not earth-shattering and devastating, either. >> so 400 million. presumably this quarter and the -- >> yeah. look we took our target and the numbers and i figured it was proven to just take it out now that may be too punitive again, they'll be looking to try to get licenses and they'll be

nvidia said it would be a $400 million hit to revenues. kla, on semi conductor they're moving lower in sympathy with some of the nvidia and amd-related chip stocks. and bed bath and beyond downgraded to a neutral rating on the heels of its strategy eck update the analysts over at raymond james say yes, the strategic update helps the liquidity position at bed bath and beyond but they think it is kicking the can down the road and refer to it as abysmal. down 5% right now, becky i'll send things back over to you. >> you know what i forgot? >> what's that >> you know what tomorrow is >> what's tomorrow >> friday. but what kind of friday is it in it >> it's a job friday >> ding, ding, ding. we're going to get pretty important numbers, given all the talk we've heard from the fed. >> it's not just that. what's curious right now is the jobs picture seems to be dictating so much of the federa fed rate hike narrative. you're hoping that it continues on the trend, but if you see commodity prices, everything else moving to the down side it's really ju

nvidia is acting worse. i would not want to be involved in nvidia. >> would you purchase the natural gas fund and sell the calls against it? >> i would, but i will keep it quick, short dated and upside. there is a lot of geopolitical turbulence. >> all right, it is time for the final carl call. >>> cell capital one and by kroger. >> i will cell capital one as well. >> okay, and mike? >> use quick spreads on capital one, and get long kroger and macaroni. >>> we covered a lot of ground. that does it for us on options >>> tonight on this special back to business, a rocky start to september. stocks tumbling in the afternoon. on average september is the worst month for the major indexes. is today's action just the start of a swoon? >>> turning to losses after investors forgot about the jobs report and focused instead on the growing energy or in europe. we will break it

government restricted chip sales to china nvidia down more than 8%, hitting new lows for the year. that stock has been cut in half this year, nvidia and amd each generate a quarter of their total revenue in china eunice yoon is there with reaction from beijing and the impact on semiconductor stocks eunice >> reporter: well, china has accused the u.s. of abusing its export controls. today the commerce ministry said the u.s. should stop its wrongdoing, harming the rights of chinese as well as american companies by restricting the sale of these advanced artificial intelligence chips to china. so nvidia's a-100 -- -- as well as lenovo mainly in cloud services, and the development, though, of ai is really a prime targeted sector the chinese want to dominate. with holding these types of chips really does hold back the chinese plans to upgrade so from china's perspective, this is a way that washington is trying to keep china down. so they are trying to hold back, their technological progress, as well as economic progress. so really what we'll likely see is the chinese solidifying in the c

nvidia shares are under pressure. the u.s. says nvidia, based in santa clara, can't sell certain chips to china and russia because those chips are too powerful. how powerful? we can talk about that. you've seen clips like this before, the so-called metaverse, at least the way facebook sees it. a place where you can meet friends and attend business meetings, while wearing a headset to pull you in to virtual reality. nvidia thinks the future of this whatever-verse might be more useful than just a virtual dance party and those superpowerful chips are making that happen. take a look at this 3d interactive view of a wildfire. the computer doesn't just show firefighters where the fire is. it can use its power to predict where the fire is going. >> you want to know where you're going to put the fire risk in, where you have to move teams, where do you allocate resource, how do you coordinate aerial bombers and so on. >> we got a chance to look inside the labs at santa clara's nvidia. what they're doing is pretty amazing. this is a bmw

eastern you can watch it on nvidia's website. they will bottom when everybody that can't take pain leaves it i sense we're closing in but not there yet, the fed will every shadow anything said by individual companies but got important ones reporting like lennar and kb homes. both home builders will be soft, how can they be anything else with mortgage rates soaring so fast we need the price of housing to come down if we beat inflation and anything that indicates cancellations the number i'm looking for or a lack of traffic should be well received by the market and very strange. the home builder stocks moved up today because some investors are beginning to think maybe the fed knows it can declare victory not far from now meaning that they may hold off from rapid fire rates after wednesday because they don't want to blow it up. next week is also dream force. that's a pilgrimage of tech run by salesforce.com mark we'll be out there to cover it and pay close attention to wednesday's analyst meeting. salesforce is a worldwide company t

don't just yet what the impact of the merge is ultimately going to be on earnings for nvidia. are they going to have to restate guidance i agree with brin. unfortunately right now i feel nvidia and amd are inbreed >> these stocks have been brutal year to date 56% decliner smh is still down 35%. the actual units intel down 47.5 -- i'm sorry, down 44 amd down 48. invid you down 56. brutal >> it is brutal. down 40, were they justified, and they weren't because they're a function of free money i'd come on the show and josh did and joe did and said, look, this is new age for semis because they're pervasive. they're in everything you have, your refrigerator, your car. guess what at the end of the day their commodities and the market caught up to them. and now you're still blaming supply chain issues. i don't know why companies whether semi companies or whether ge or anybody else are still using that to blame the markets. i'm not buying semis here because i think these continue to come down >> cloud stocks off nearly 50% from their recent highs, but the stre istets ill bullish from a

i'm not sure where it stops because i don't know how much nvidia will ultimately end up earning and i don't know what to pay for those earnings until we get more clarity i think you can keep going lower so why hold something like nvidia then? why not get rid of it? because i believe in the business and i believe in the management nvidia has a history of reinvention and i think it can ultimately make its earnings go much higher. when things turn it will start getting a much higher multiple too. we just don't know when that term will happen which is why i think it's a hold for the moment i wouldn't be a buyer here the p/e is still too high. but at the same time i think we're getting to the point where it is indeed too late to sell. i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money. i'm jim cramer see you tomorrow "the news" with shepard smith starts now >>> trump telepathy. if he thinks it, is it so? i'm shepard smith. this is "the news" on cnbc >>> former president trump tee fends himself over documents he says he

and that's the market for nvidia. i actually see them developing and being the leading indicator of where the market of nvidia is going. ed: i wish we had more time, but very quickly, we might get deliveries this weekend, what are you expecting on that front? pierre: i sense tesla has 380,000. very high. i anticipate they have been straining to get the orders down. more at a 360, and i think you have that 20,000 that might be on china and the rest of the world. ed: thank you very much. coming up, a read into elon musk's text before heading to delaware where he will face off with twitter. how one text suggest musk already knew the problem. we will discuss that next. this is bloomberg. ♪ ed: hollywood super agent ari emanuel is trying to pave the way for a potential settlement between elon musk and twitter, that's according to sources. the news comes after twitter executives, close friends and potential investors came to light. just when you think that this saga cannot get any weirder. >> i'm not sure how seriously we

i'll see you soon, on one show or the other i enjoyed the conversation >>> nvidia is getting whacked today, hitting new 52-week lows and a staggering stat on the cathie wood trade. we'll tell you authanebo tt xt what if you were a major transit system with billions of passengers taking millions of trips every year? you aren't about to let any cyberattacks slow you down. so you partner with ibm to build a security architecture to keep your data, network, and applications protected. now you can tackle threats so they don't bring you to a grinding halt. and everyone's going places, including you. let's create cybersecurity that keeps your business on track. ibm. let's create >>> welcome back tough going of late for cathie wood and her ark fund. down 12.5% over the last month now we learn the biggest monthly outflows in nearly a year, $803 million out the door in august again, that's the biggest monthly outflow since last september. jason snipe, what are we to make of this? even if some of the turbulence that had been hitting the market over the last handful of months, money continued to

weighting than qualcomm, more than double, actually is this a loss for nvidia? why isn't it developing as quickly? >> yeah. i think this is something they would want to see them get it this is just a game of thrones battle think what former -- we think early 2023, i think that changes the game ultimately they hear so much skepticism that they can pull off this massive pivot what is your play? i think it comes down to a -- i believe that's what they're going to do. you look at microsoft, apple, and the stalwarts, but when it comes down to metaverse, that's for zuckerberg and team. it doesn't send a signal the street wants to see. >> lots of twists and turns ahead. always great to see you. cnbc will be at vox media conversation i'll be there. we'll hear from the ceo, certainly one you don't want to miss. >>> coming up, we are looking at one part of the jobs market expected to see nearly 10 million new openings, thanks to the inflation reduction act. >>> mortgage rates are taking a bit of a breather today, but still holding above 6% we'll have a look at that impact

i would just be inclined not to be long or involved in nvidia. >>> the last tweet asks, would you buy ung and sell calls against it bonawyn? >> i would, but i'll keep it quick. short dated and upside there is too much geopolitical turbulence for you to get called out of a position. >>> all right, got it. time for the final call. carter, kick it off. >> buying kroger kr >> selling capital one as well >> use put spreads on your capital one. >> weig >> we covered a lot of ground. a special "back to business" starts right now - [announcer] the following is a paid presentation for emeril's all new forever pans, sponsored by tristar products incorporated. - emeril lagasse here with the most innovative pans i've ever cooked with. they can sear like stainless, caramelize like cast iron, and they have a super non-stick surface that will never lose their non-stick coating. introducing my forever pans. - [announcer] forget about non-stick coatings that don't last. the problem is they have a single layer of non-stick that quickly wears away with everyday use. - the pans say non-stick and they wor

josh brown the owner of nvidia on the show today. need a mover here? what moves this needle >> i've never traded invid you always been an investor, and i remain an investor and the new gaming chip is great, but this stock has been locked in a pretty substantial down trend, and there's nothing telling me -- this is stock trading back to where it was in september 2020, so all of the benefit of stay at home, of more gaming, of crypto, all of things that were fueling invid you share price including the bubble in growth stocks is gone so you're like basically reset but what hasn't gone is the fact this company's fundamentals have only gotten better so it's a cheaper stock than it was the last time it was at these levels two years ago, exactly two years ago. and so i think if you're a long-term investor, yeah, it would have been great if you killed some off at the top, and a lot of people did. i sold a little bit. if you're looking at this as like a short-term trade, we're not there yet. >> aren't there so many other semiconductor stocks so much cheaper? >>

nvidia has obtained licenses to provide customers for its artificial intelligence chip. you need a u.s. government approval to send a china-based customers. global news -- global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta, this is bloomberg. alix: thanks. no stock is spared as the semiconductor route continues. we've had warnings about demand, of the philadelphia semi index. outpaced the broader tech sector something over 10%. where's the bottom for the sector? joining us is paula from bloomberg intelligence. thanks for joining us. where's can you be the -- where's the bottom going to be for this? >> nvidia is situation shows the government is really helping regulations for the whole sector which is why the whole thing traded down. on top of that has more lockdowns in china. with the consumer declining, and now we are also seeing the more resilient side of the business which is the enterprise servers. tom: i'm looking to buy a car, they're still selling -- saying i

i'll go man-pire. >>> we mentioned nvidia at the top of the hour. jensen wong making some comments at the company's conference, announcing some new products christina has been monitoring and joins us with some highlights >> nvidia sticking with its gaming routes. so in simple terms think of love lace architecture as than the engine of a car and the graphics processor as a car the processor can provide realtime rendering to create fully simulated worlds, which is what you're seeing on your screen right now, even down to light refraction on a plane. we have signs of slowing in the second quarter but also announcing its latest h100 graphics processor and that's going to help with high performance computing. so investors were worried about delays in this particular chip because it was being developed with chinese partners and the united states as we know is imposing export restrictions on ai chips to china. invid you warning previously it could take a $400 million revenue hit this quarter loan. but there is a positive for this since a five-year license

also initiating nvidia and intel at hold. and citi on globalfoundries saying they expect a positive update at their conference today, which could drive the stock higher you can read more about those calls on cnbc.com/pro. we're back in a moment how do we show strength and stability? (eagle call) a mountain? a tree weathering a storm? (thunder) lions? nope. (lion rumbles) we do it with our people. >>> turning back to apple, we've got a lot of announcements yesterday. no major increases for the iphone in the u.s. we did get some updates for both the apple watch and for airpods. steve kovach is with us. he has more. hey, steve. >> yeah, more than half the show at apple yesterday suspect on the apple watch and airpods. that's because even though the ipod account for most of it, the hardware and accessories is where the growth is happening. on the watch side, not a lot of new there, at least for the regular series 8 model announced yesterday. the only significant new feature is a temperature sensor for monitoring ovulation cycles.

it's a lot more damaging to nvidia . this is a real catch to situation. we like nvidia because it is the best in the business but that the very reason our government is restricting the sales and china. no wonder the stock plunge to 52-week low. in fact, i should've seen the company. we've got a new code word with china. anyone who thought the china american relations would improve under biden has been dead wrong. the chinese republic is now the second most powerful country in the planet and they want to throw their weight around. in particular, they want taiwan which is recognized by the world as part of china even as it effective independent government is an important u.s. ally. one house speaker nancy pelosi led a congressional delegation to taiwan a month ago, our government had to know that was a member for just ash caused the chinese to illustrate what they could do to taiwan. at this point, that tension between our government and china is higher than it's been at any point since 50 years ago. not quite as bad as the korean war but the biggest movie

it will hurt chip demand for all of the functions with negative announcements, whether it is nvidia or amd or any other company. inventory correction is a given for 2023, and that is why it is prudent to allocate the free cash flow. >> i'm looking at the geographic breakdown of texas instruments it the fa function. 88.9% of its revenue comes from abroad. 65% of that comes from asia specifically. we are seeing some extreme weakness, relative to the dollar. talk to us about the currency impact on the bottom line of texas instruments. >> absolutely. i think all of these companies have a pretty high exposure, and they are good with their strategies. i think it is not going to hit them as big as you might see in the currency. look. i think there is a demand exhilarating. i guess the positive in nvidia, is that they are so big that in the end, the sectors cyclical, and there is no other place to go. we will see that before rebound. really awful context -- helpful context. a reminder for more research from bloomberg intelligence, you can use the function bi on the terminal. very helpful

you could look at intel and nvidia rival qualcomm. this is holding above its 52 week low of $118 by a buck or two maybe because qualcomm made a major bullish announcement. ceo here in studio coming up to tell you about it. you can't deny that investor psychology very much at work right now. as recession fears driven by federal reserve chief jay powell into meeting this week, yes, on wednesday, that the only thing worse than a recession triggered by rate hikes is if the fed stops raising rates too soon derailing efforts to quell inflation which means a recession will likely bruise corporate earnings and hence stocks. that's what the market is projecting right now. the dow cracking through a whole bunch of important levels here. gang, we have the dow cratering about 752 points. now below 30,000, 29,324 right now and intraday, the blue chips took out the june bottom but the november 2020 trough as well. you want to see the chart version of fear? wall street's anxiety index, put up the vicks smashing through the june high. it scratched ab

. >> it looks like the export rules which are restricting exports from nvidia and amd to china are not impacting broadcom and they came out with a strong sales outlook which was welcome news on wall street. the companies reducing fears that spending on infrastructure is slowing. shares were up 2%. they beat expectation for profit and revenue as well. the company expects solid demand affecting continuing investment by customers. a bigger picture for broadcom, they have done fairly well this year where a lot of rebels -- rivals have not. customers have put off big-ticket purchases. broadcom sells a wide range of chips to apple, google, and cisco. drop into the bloomberg and you will see that they have become a bellwether and also invaded the fate of so many other chip companies which have had a very difficult year. >> the other side of the story a big plunge in chip stocks. >> nvidia took a lot of their peers down in the regular u.s. session. these were significant drops. nvidia took a lot of their peers down because they warned that the new government rules about the exports of artifici

unlike nvidia, they seem to be avoiding the slump. they did announce a positive revenue forecast for the fourth quarter. twitter not doing much in the post market. it didn't do much today. in its intraday trading either. they did announce the edit button. we will be watching the stock for movement but so far, not a lot of movement. emily: all right. thank you for that update. twitter launching the edit button for the first time after years and years of debate. here to tell us more, kurt wagner. this is only a test right now for paying subscribers. >> you get a 30 minutes timer. once you post your tweet, you will have 30 minutes to go and make edits and change before it gets locked more permanently. other users will be able to see a label to shows the tweet has been edited. they will be able to click that to see prior versions. there's a little bit of a track record. to your point, it is only available on twitter blue. you have to currently be a subscriber in order to get access when they roll it out. that could change in the future, b

. >>> all right, nvidia shares are at the bottom of the s&p. the stock is getting clobbered after an sec file being revealed u.s. regular laters have ordered the company to restrict sales in china. regulators are concerned the chinese military could use some of nvidia's chip models for weaponry. and this is a big blow to nvidia's top and bottom line, and it could cost the company $400 million in potential sales. joining me now to discuss the mounting tension between the u.s. and china, mesh enterprise -- american enterprise institution's senior fellow derek scissors. it's great to have you here. does nvidia, in your mind, have wiggle room? do you think regulators in the u.s. government are overreacting in what they're doing with invidia and amd? >> i don't think they're overreacting, because i don't think they're really doing that much. two companies were told they have to stop selling to china, but it's not a ban. it's an interruption while a licensing process is set up. they're going to have to apply for licenses and, technically, they might

nvidia is one of them. microsoft is one of them. apple is one of them. i think this is a time where you can start dipping your toes there. you absolutely do not want to put a full allocation in. i think this is the time. i'm not so sure but i think we may see a little bit of an overreaction today. we may try to get a bounce specifically in those three names. liz: scott bauer, scott redler, i know you guys have spent the last few minutes of this trading session talking to us and we appreciate you sharing it. [closing bell rings] you could have been trading. tough loss for the market of ofk seventh worst loss of all time. markets spinning badly due to higher inflation ♪ larry: hello, folks welcome to "kudlow." i'm larry kudlow. so today's cpi inflation report shocked wall street and the nation with a significantly higher than expected print. pollyannas are painfully learning there is no magic cure. there is no easy way out. after several years of excessive federal spending regulating, taxing and money printing, the highest inflation rate in 40 years is d

dom, i sold some nvidia, i sold the position in nvidia several weeks ago. i had some cash on the sidelines. boeing has had a lot of good news coming out recently the second quarter earnings report better than expected and 787s are being delivered again, have is very important for free cash flow. it is now back down 156, 157 so i'm adding to a position i believe in, and which is has gone down. if you believe in a position and it goes down, that's a great opportunity to get it on sale. there are some catalysts to look for to coming up the big one, the big one is china recertification. but that may not be the first one to come. what i'm really hoping for is congressional approval to extend the deadline for certification of the 737 max dash ten, the biggest version of that plane and the one the airlines want the most congress really should approve that extension of the deadline there is a lot of nuance to it, but they should. this is a good airplane. this is a major and vital portion -- this company, that is -- of the u.s. economy, and it would be foolhardy to

nvidia shares finished down nearly 8% and a md down 3% on the news of the chinese ban. johnson & johnson has agreed to pay 40.5 million dollars to settle a lawsuit over its role opioid epidemic.s. state's new hampshirsayshe pharmaceutical giant aggressively marketed painkillers to doctors and patients, targeting vulnerable groups, including the elderly, while heavily downplaying the risk of addiction. johnson & johnson will be banned from the future selling or promoting of opioids in new hampshire. the company denies any wrongdoing in its marketing practices. in february, j&j was part of a nationwide settlement that included the u.s.'s three largest drug distributed -- drug distributors. the legal fallout continuing from that. j&j alone faces at least one more potential lawsuit in washington state. mark: very sad story, and it is amazing how it has dragged on so long before reaching some kind of conclusion. thank you very much indeed. stay with us. more to come here live from paris. 09/01/22 /01/22 [captioning made possible by democracy now!] amy: from new york, this is

>> i'm not worried about nvidia in the long run. in the short time we have massive chip glut, pc user down, supply chain issues, export control issues. that will rectify itself. the world is moving to gpus, they're the heart and soul of every electronic device and heart and soul of commuters. this may be a good time to pick up nvidia i would wait a little longer. charles: i agree. i think there was serious overreaction there. apple made serious moves. first they changed privacy rules. crushed meta, snap, twitter, ones you talked about, one-trick pony names. they lost billions of business and market cap. now apple is aggressively building out the digital ad business. some are calling it a mac developpian move. i'm calling it straight up gangster. some are saying it is not fair. what are your thoughts? >> if you're a digital giant, darn, this is the cookie apocalypse times two, you crushed us. if you're consumer it is amazing move. idfa protects privacy. apple sided on the side of the consumer. when you think about that, at the end of

. >> right now, nvidia and and the dropping of the u.s. government starts restricting sales of some of their trips to china. we'll break down the next move for the sector, go inside the rising tensions with aging, straight head. plus, the not so friendly skies for investors. major airlines grounded over the last three months, but could an end to do some research actually help boost the fortunes of the big carriers by cathartic and later, after he historically back day, an amazon prime like subscription service potentially coming to apple next week. >>> and we are all over lululemon. we'll hear from the ceo minutes from now. i'm the melissa lee. this is fast money life. on the desk tonight, and brian kelly. start off with a major market turnaround. rally in the last few minutes, treading the nasdaq 100, racing a loss of more than 2% early in the day to close in the green. the s&p and dow also snapping for daily lou speaks to eke out gains. the news coming to say be drop with some semi stocks. and video chatting nearly 6% of the company said

nvidia and intel both got a call let's do intel first jenny, are you just going to to hold on here >> yeah. >> and hope for the best >> well, this is -- okay, you know how i was fuzzy at math before >> new 52-week before today. sorry to interrupt you there i wanted to get this out there. >> no, that's important, but actually it brings up a really important point. every day as a partnortfolio manager, you need to look at your portfolio you need to say, what's the opportunity? would i buy this here today? i get this from my client a lot. it's down 40%, should i sell it a lot? i would say, absolutely not. at $30 a share, what is the upside potential from here if it's more than i can find in other stocks, then i want to own it. >> you're telling me you can find more upside in this than other stocks from here at 30? >> let's go back to patience and uber and being early if we look at the whole initiation or whole report, we've got amd. that assumption on amd as a buy is amd will continue to take intel's market share indefinitely i'm going to bet intel will fight back and get back to reasona

among them, intel on the semiconductor side you can also throw nvidia in there as well. meta platforms down 7.5%, also within striking distance of a new low for the year and alphabet even down 5% as well within 5% of the 52-week low. so it is the stocks that matter, the biggest ones out there in terms of market value that are causing some of the most down side pressure. i'll send things back over to you. >> great perspective, dom. i'm not sure i was expecting to see alphabet in that group let's get more into the sell-off and bring in wilmington trust head of investment strategy megan chu. i'll ask the same question i asked the first guest. is this an over reaction or justified? >> i think this is a bit of a -- another wake up call for the market and a bit of a reminder you can't have your cake and eat it too what i mean is we've had really strong labor market data, really strong services, pmis, and to see inflation come down in the face of that is a challenging mix. we do really think inflation will start to slow, but in order to do that you're going to have to see some

so the question is how exposedse to go for a name like nvidiae bs this stock has traded at a massive discounting to the market and its peers because it is a massive ly commoditized product here we don't have any idea what the next one year looks like so a commoditized product like this is having some reshoring issues about all the costs it's going to take to make fabs here or other places other than china, it's just a lack of visibility so i think early cycle plays like chips will get hurt harder, which they have, which is outpacing the nasdaq and s&p so to me there's no reason to buy any of these stocks on a day like today i think we'll retest these lows, i'll say this again and again, that we had in june over the next couple of months. >> so we're still 8% away. 8% higher than the lows in june. the big debate is whether we retest them. clearly there's more in favor of the bears camp with that sticky inflation number showing that it's just going to be harder for the fed to ballttle the home builder stocks no surprise, significantly underperforming the broader market today diana olic

more money you get from risk-free returns, the less attractive some of these stocks become look at nvidia and meta platforms. they lost anywhere from a quarter to more than half their value. but it was like in the last couple of months here as interest rates started to play out that you saw moves by nvidia and meta toward within anywhere from 1% to 3%, 4% from their 52-week lows again, these three companies, a handful of the mega caps near their 52-week lows in yesterday's trade. and then, remember, let's put it in context stockmarket volatility was extreme yesterday. we took you through the superlatives the worst day in many cases since june of 2020 but it wasn't all that bad compared to where it has been, even this year remember, in the weeks just after russia's invasion of ukraine, we got up toward near 40 on the vix overall on an intraday basis and back during the pandemic lows on an intraday, it was up above 80 so things, yes, were volatile yesterday, but they could be a heck of a lot worse. keep that in mind when you talk about the market volatility we saw. >>> still on deck, more o

-- can hurts nvidia's bottom line. and that's only in three months, in a quarter, right in amd also facing the same license requirements, but the stock is down despite the fact thaw -- that you had saying these limits will have 40 no material effect on their business. both stocks are underperforming the broader stock market, which i found surprising. ashley: yeah. we also had some company earning. let's begin with okta. susan: yeah. so great spring thyme for okta, as you mow -- springtime the, the id security company you use to get into financial programs. better sales, better profits in the spring but also improved outlook on the year, which is important. but this is the reason why the stock is down about 26%. remember they went big on a $6.5 billion acquisition of their competitor also, and it's proving difficult to merge two companies. the synergy is here and hiccups obviously not good news, and wall street is deciding to sell first and ask questions later. i also want to show you discount retailer five below, it's

this week i'm concerned about nvidia >> what's your concern about nvidia, jim? >> well, have you seen the way that bitcoin is trading? they still have this -- they're moving away. ethereum's new merger means that you do not need graphics cards that has been an unintended consequence for nvidia they make these great cards and those people have been the people who have been mining have been using them. you do not need their cards anymore to mine, and at the same time, they haven't been able to make the transition yet to being artificial intelligence, virtual reality, we're just not there yet. machine learning so, we got the high-tech stuff not there yet until we see earnings, and we have the lower stuff being hurt by this ethereum transfer. david, i don't know how much you follow bitcoin, but bitcoin seems to be another thing that the fed is sick of >> yeah. we're going to talk a bit more about that >> you like that >> yeah. i like what? >> that the fed's sick of bitcoin. >> i don't know what the fed is sick of. >> just agree with me. >> i did read a lot, carl, th

anywhere from 10% for the garden variety pull back in megacap to 21% with nvidia, if you want to include that in that group at least it has a sentiment sort of standpoint that was in that group, and you have a lot of ownership around this space. so joe's talking about the qs. we're talking about the fed so-called longer data assets i don't know, what do you think about megacap heading into a new quarter given where we are today? >> yeah, i mean, i think, you know, the recent downturn in megacap is they came from the quality. they're way off their highs. the second round is saying, okay, if we are expecting -- i think this really comes back to that dot plot, scott, we talked a lot about already. but just thinking about it in terms of the duration of the higher rate environment, the duration of time where the fed is telegraphing we're going to be above the terminal rate and having to discount the cash flows back to that i really still think there's a disconnect between future state cash flows for these company and the reality how much free cash flow today and the longer term discounting th

okay, nvidia and amd are semis in the same markets. we're going to say we're -- we're going to keep amd because it's cheaper than nvidia keep that in mind. meta another technology company too much like these so say no to meta and snow dpflake technology related to the data center that's too high and lucid, a very expensive ev car company. i'm struggling here kevin because i want to protect you. i need to see health care. let's just -- let's say bristol myers, let's do costco, let's do united health because we just did that or mix it up a little let's do rathyon we'll build around amd and lucid and add the other three. you're way too tech oriented in a market that is very inhospitable for tech and the nasdaq let's try another. let's go to john in north carolina john >> caller: hey, jim, big fat tjif and boo-yah from raleigh, north carolina i have five stocks in my portfolio and just want to throw them at ya i have bank of america i have plug power. i have fedex i have honeywell, and i have apple. am i diversified >> plug power is speck

nvidia takes up a large percent of market cap in the s&p 500 meanwhile, it is not a large contributor to s&p 500 earnings. actually if you look at the top 20 contributors to s&p 500 earnings, i can't think of very many semi companies that are in there. they are further down. what does contribute significantly to s&p 500 earnings as i mentioned before are chevron, exxon, united health, really big companies that are not as at risk. and so also like if we're going to be -- i feel leak when you're talking about this you've got nvidia in your mind. i don't know how significant their earnings downside is even with the china thing that's 7% of revenues on one specific chip. but if you back up and take crummy little intel -- >> but we're talking about semis. jenny, we're not talking about the any one fund mentals of one company, we're talking about semis as a shorthand for economic activity -- >> i don't think that's right. fine, let's talk about energy. >> go ahead, rob >> listen, there's no question that estimates are coming down no question in my mind in fact it's been a really strange fea