9AM HOUR: Anthropic and the $63B AI Debt Deal, Nvidia and AMD Bet on Meta, Boeing CEO Exclusive 10/27/26

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0:43and global economic news, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash marketupdatepodcast, or find Schwab Market Update wherever you get your podcasts. Market moving insight and analysis. Join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC's Squawk on the Street. Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Stocks getting a little more sure-footed after that anthropic prospectus on Monday.

1:18And now at least one upgrade of names like Broadcom. A lot of firms raising guidance like Coke and UPS. Fed meeting begins. WTI in a familiar range, just above 100. Our roadmap begins with a$63 billion AI debt deal. Broadcom working with banks and Blackstone to finance its AI infrastructure plans with Anthropic. We've got details. Oh, sorry. Phone been ringing there. Netflix co-founder and Anthropic board member Reed Hastings detailing what he sees as the main risks from the AI build-out. And we're also going to have an exclusive with the CEO of Boeing. This after the company narrowed its third quarter loss.

1:54Carl? Let's begin, though, with the AI trade a day after Anthropic unveiled that public IPO filing. B of A, Blackstone City, and Morgan Stanley will provide$63 billion to buy chips from Broadcom and lease them to Anthropic. Jim, nice sort of in-depth work at Hoctan's role in all of this. Hoctan has a great balance sheet at Broadcom. He's also a tough guy, and this was a good deal for everybody involved. Banthropic, by the way, has a lot of cash when you think about what's going to happen when they do the deal. One thing I want to step back and just say, you know, when we are so excited that a special vehicle was set up in order to be able to pay for things that are made by Broadcom, where we actually have a couple of banks saying, you know what, okay, we're going to get involved.

2:41I find it a little harder to cheer, and I'm a total Hocktank fan. David, I find it hard to cheer because this is what we're cheering. Aren't we supposed to cheer like companies that are making fortunes, buying back stock and doing terrific? Instead of cheering like, oh, they made that deal. Because as far as I'm concerned, when I go, oh, they made that deal. Well, who's next? Can anyone else possibly have the bearing and the balance sheet of Hocktan to do the next deal? No, you're asking the key question, I think, Jim, which is one that a lot of people in this world are entertaining, which is, I mean, there is still capital.

3:14We know that. But it is becoming more dear. Right. And the decisions about where it allocated are going to be key here. And not everybody's going to be able to get it. But to your point, this deal in particular, the one we're talking about at$63 billion, that's going to let Anthropic essentially lease these chips from Broadcom, these Google Broadcom chips, has been in the works for some time. Remember, there was an Apollo part of this that came some time ago. We actually thought this would get to the market sooner than it did. The Journal has some good reporting today on sort of the fact that they needed more in terms of guarantees from Broadcom.

3:52Point I think you just made, you know, to get the deal over the finish line. I'm trying to sort of get and I'm expecting to. In fact, that might have been the call just to know where's this thing priced? Like what kind of interest rate are they paying? By the way, on that note, Jim, I guess I'll just come to you. I mean, you can get Broadcom risk now and you can get paid pretty nicely for it. Eight and a half, nine percent. Who knows? SpaceX risk, meta risk. I'm talking on the debt side. it does raise the question as to why bother buying the stocks if you can get almost double-digit returns as a senior creditor.

4:21Look, you're dealing with these really great repositories of cash that are run by really smart people, Jonathan Gray and Blackstone. I mean, they're all in on this. And I think it's terrific. And they have a lot of guarantees and things like that. But you've got the second-best balance sheet person. Some people say best, but they do have some paper that if they were put back to it, it would be different. But it is NVIDIA. Now, NVIDIA has become a poster boy of a company that's been backing companies like Corning that we just saw today. Like a lot of different companies. And that's all thought to be, Carl, that all that is, is him saying, listen, I'll give you money.

5:00You give me money. Well, he's done. He's built a world. He's built an ecosystem and he's changed the world. And he's been forgotten about right now because we're so glad that that Hocktan got the, you know, he cut 63 billion together. But the fact is, is that the balance sheet is still invidious to win other than Apple. Apple's balance sheet is just gorgeous. This is why you said a few moments ago that if Jensen Wong thinks Core Weave is money good, just buy what? Buy the unsecured at 15? Yeah, because he knows that, look, if you know it's good, you don't want to go buy common stock because then people just say, oh, he's just trying to prop it up.

5:40You go and buy that 15 percent debt instead of buying your own common and just saying, listen, you don't believe it's money good? I'll take everything that in trader has to offer. That's what he should do. Now, am I the first person to ever think that if that's the case, that would be that would be my nephew coming back from the grave. He was smart enough to think about stuff like that. He would say, Uncle Jumbo, they should just go buy the debt. But he would do it. I'd be like, wow, can I say that without anyone knowing that you said it? He goes, I've said everything for 21 years and everyone never knew what I said.

6:11But that's the type of thing we would talk about. Why isn't he buying back the debt? Yeah. Well, it's a nice bounce off of 51 for CoreWeave today at about 57. CoreWeave had a nice bounce. Nebius with some insider buying as well. Right. One of the directors. Yeah, nebius hasn't, from what I can tell, lent out as much of the compute that it has. It's just when you go to look at that, have you had a chance to read like the core weave and all the different debt that's connected to it? I've looked through that occasionally. Not recently, though, no. Well, you know, you need Pepto-Bismol. You need Nortec, which is a migraine drug I take.

6:48There's a Klonopin because then you'll sleep better. I really don't think I want to do that, given all the different drugs that I might have to take to just get through it. Well, I'm giving you a cocktail, but we'll make it so you can get through that day. I'm having a hard enough time working through the S1 from Anthropic, which does take us back to the Broadcom deal and the Anthropic IPO, of course. I mean, just alone, we learned they have around$321.4 billion of leases that have been signed but not yet commenced as of June 30, 2026. That's Anthropic. This is also going to be a lease deal. The Broadcom chip deal is a lease deal.

7:22So it doesn't show up necessarily as CapEx. I think you made the point. We learned Anthropic does have$112 billion in cash. But the conversations I had this morning with a number of people sort of were around, well, the CapEx number is going to go up. Obviously, their lease number is enormous. You know, will it impact margins over the shorter term when they have to pay the likes of a SpaceX at a rate of what is$50 billion for 50 gigawatts of compute, being$3.1 billion a month is what they're going to start paying. What is that going to look like? Or how quickly will they ramp those margins back up as they continue to cut price?

8:00So many different questions that get back to, of course, where is this thing going to be priced? We can't make it to be so different from everything else that we don't ask these questions. Right? It's not some special security. No. It's one of the great growth companies. There. Okay. And by the way, that line was blank in terms of the ARR line as of October 31st. Blank. We'll see where it comes in. Which was about the time where token maxing, some argue, kind of topped out. Right. And to what degree will that have an effect on their growth? How much is compute? And how much, right, when they crack down on the distillers in China and that cost them revenues, big customer meta, which seemed to still be there, but supposedly cutting back.

8:46Would you rather just buy a plane company that's been losing money? Maybe. Maybe if they had a free cash flow upside surprise. Right. Ups and pretend maybe you have some sort of guidance that maybe people don't like. Speaking of Boeing, the company did post a quarterly revenue beat and better than expected free cash flow. Operating loss a bit wider than analyst estimates. Our Phil LeBeau is at Boeing HQ with Kelly Ornberg this morning. Hey, Phil. Thank you, Carl. Kelly, they set us up there by running down some of the numbers from the third quarter. How do you look at the setup for the fourth quarter heading into 27?

9:20Well, third quarter was really important for us. Getting the two new MAX variants certified, the Dash 7 and Dash 10, were really important because those airplanes will deliver out here beginning next year. And also on our defense side, winning the U.S. Navy's next generation fighter airplane, the F-A-X-X, was a huge transformational win for the company. You've talked about stabilizing 737 MAX production. And it's taking a little longer than I think you guys expected and certainly what the market expected. When do you get to 47 per month, which you're in the midst of transitioning to? Yeah, we're working on that.

9:53We're trying to stabilize. I know everybody wants us to go faster, but we're going to do it right. Make sure that the production system is stable. We're delivering high quality, safe aircraft. And so I expect that stabilization period will last the balance of this year into early next year. You're starting production of the 737 MAX 10 at the new line in Renton. Everybody doesn't always understand. All the MAXs previously have been built down in Renton. Now you have the line starting in Everett. Where are you in terms of those deliveries? Are they likely starting early next year? Well, the deliveries from the north line in Everett will be next year.

10:31In fact, we rolled our first airplane out of the Everett line here. So that is going according to plan. And that was a Dash 10 airplane that will be delivered early next year. Jim, I know you have a question for Kelly. I'm trying to balance right now, Kelly. On the one hand, I see the end of the drama. I don't expect me to call you in the middle of the night anymore and say, how could you do this? That's off the table. But on the other hand, we've got actual outlook, maybe estimates, maybe guidance. And there's always somebody who is so, so hopeful that I have to believe you will be letting them down, even though all you've done is finally gotten us to a point where I no longer expect drama.

11:15How do we reconcile those who just somehow put a number out there because their bosses require it and what you have to say today? Well, Jim, look, I think the uncertainty in our financial performance is narrowing. We're definitely reducing the risk going forward. We're seeing better performance out of our defense portfolio. We are ramping up aircraft, and we're doing that in the right way. And, you know, people want us to go faster, as I mentioned, but we're going to be smart about this, stay disciplined. And the outlook is there. We have$745 billion of backlog, and it's our job to execute on that backlog in a profitable way.

11:55I think what Jim's also getting at here is free cash flow. Look, it was better than expected in the third quarter, but you guys have been very cautious about saying, hey, ultimately we're going to get to$10 billion annually in free cash flow. But you haven't put metrics out there. When people look at free cash flow and what to expect in growth, I know you're not giving metrics right now, but what should we expect in terms of the investor looking at Boeing? Well, we're going to have positive cash flow for this 2026, which is the first time in several years. And that cadence will continue to grow year on year.

12:27will increase that positive cash flow and get to that$10 billion target and beyond. When you look at the defense side of the business, look, it was better than expected revenue for you guys in that division. Before we went on the air, you said you really start to see the momentum picking up there, right? Yeah. I mean, it's not just the performance in the organization, which is improving across the board. We are booking significant orders. F-X-X, I mentioned. We had a multi-year PAC-3 seeker order, multi-billion dollar order, additional orders for F-15-EX. So our entire portfolio is really needed right now, and we're seeing strong demand.

13:06So I think we'll see larger growth numbers out of our defense portfolio. When you look at the space side of the business, crude missions, you guys are back in the mix there. What's your outlook when people say, what can we expect from Boeing, let's say, over the next two to three years? Well, we want to get that business to a high single-digit margin-performing business, and that's respectable in the defense. You're a waste of that right now. Well, we're a waste from it, but we're making great progress on it. We're working on these big defense programs that we've had charges on in the past. We've stabilized that.

13:39This quarter, no big charges coming out of our defense portfolio. And then bringing in new contracts that are underwritten with better terms and conditions and better financial performance will allow us to achieve that high single-digit growth. You've got the commercial side. You've got the certifications of the Dash 10 and the Dash 7 for the 737 MAX. Those have been taken care of in this quarter. Now the focus is going to be on the 777X. Where do you expect the certification to fall, and when do you think deliveries will begin for that plan? Well, we're still focusing on deliveries in 2027. Because you're building the planes, correct?

14:16Yeah, we are building the planes. And so the actual production of the airplanes is a little bit separate from the certification program. We're continuing to make progress there. We expect that certification to be complete next year to allow us to make those deliveries. And quickly, when it comes to jet fuel, so many airlines, especially the European airlines, their hedges are coming undone or winding down relative to where they were. And a lot of people are looking at the airline industry around the world and they're saying, look, if we go through another two quarters with jet fuel prices where they are, we're going to start to see some people scream, uncle, I can't take it anymore.

14:48Yet at the same time, you've got the max dash 10. You were saying before we went on, airlines are clamoring for that because of the fuel efficiency, right? Yeah, the large part of our backlog is actually replacement aircraft, and they're replacing much less fuel efficient airplanes with these more fuel efficient max. So we don't see any change in our overall demand outlook. Now, we'll see how this all plays out, how long fuel prices stay where they are. But right now, our backlog is pretty strong. I feel like we'll be able to manage through even if there is some softness in the demand market. If jet fuel stays at this price, let's say, well into the first half of next year, do you think that around the world we might start to see some airlines saying, we can't do this?

15:28Not seeing it yet. There's certainly something we have to continue to watch. Kelly Ripworth, CEO of Boeing, joining us today from the company's headquarters in Arlington. Then, guys, we'll send it back to you. All right, Phil, thank you very much. Phil LeBeau with Kelly. Interesting. Speaking of the oil backdrop, Jim, UBS does raise their Brent forecast for the quarter to 110. We've been telling CNBC Investing Club members, we have a position, and we like it. We like Kelly Orper very, very much. And Phil's interview was terrific. But we say, look, it's an oil stock. It shouldn't be. If you thought the war was going to be over and price was going to come down, it would be better than owning any housing stock because it never really should be heard.

16:07This was an extraordinarily normal quarter from a company that's been so long to have a normal quarter that I would tell people it's unanalyzable. It's analyzable beginning today, and there's some people who took a very high side view, and they have to come down, and that's why the stock's down. And when they're out of the way, you've got the clearing event, you can own Boeing. We'll see about the impact on the Dow when we open in about 15 minutes. Let's take a look at the pre-market here. Tons of movers on earnings. We'll get to Coke, UPS, GM, Hilton, PayPal, Glow Worm, and Apple in just a moment.

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17:38This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, U.S. and global economic news, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash market update podcast or find Schwab Market Update wherever you get your podcasts. All kinds of cross currents and travel right now. Hilton's down pre-market on this revenue miss, but Royal Caribbean up better than six as they raise the guidance.

18:17And we're going to talk to Jason Liberty. Oh, you are? Jason's a treat. Don't ask him a lesson in this game, but he's a treat. well outpacing their rival carriers in the cruise business so far this quarter. We'll get Kramer's Mad Dash countdown to the opening bell in just 10 minutes.

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20:03Let's get to a mad dash. We've got eight minutes before we get started with trading here at the New York Stock Exchange on this Tuesday. You say the name Whirlpool, and somehow you expect more than a$1.7 billion market cap. Right. But if you take a look, Whirlpool's been a tough stock to own. This is 1981. Wow. So, I mean, you lost the dividend, too. So it's kind of flatline when you look at it from the perspective of a long-term investment. 45 years and that's it? Yeah. That's terrible. When you read the copy, we're all gripped with how much we should sell and whether Corning was good enough.

20:42And we're questioning PayPal this morning. If you want to question something, you question this call because they are in Alice in Wonderland. They are looking through the dryer, the dishwasher, the refrigerator. Everyone knows their stuff is great. I don't know. We're a Whirlpool shop, so to speak. And I've got to tell you, a lot of people know Whirlpool as the quality brand. Very rarely is the quality brand met with a huge cost structure, hot headwind, headwind, headwind, headwind. Mark Bitzer is trying. CEO? Yeah, he's trying. For a long time. He's trying. He's trying, okay. But he ain't winning, okay?

21:22Now, do you want to stick your neck out today and say, you know what? I think this is the bottom of Whirlpool. Well, go read the call. Go read the call because the company would make you feel like it's the bottom. Now, we just had a terrific executive, Kelly Ortberg, on. And when you listen to him and see, well, you watch the stock go down, down, down while he's talking. And you say, what's that all about? Well, there are people who are skeptics. This one is a fabulous product, and you keep thinking, they have to get it right. They have to. Well, what's the problem? I mean, Tepper's in there or wasn't there.

21:54I mean, I can imagine a lot of different problems, including, of course, cost structure and cheaper imports, certainly. But the real problem is, okay, okay, Fed Chairman Warsh. Okay, can we now just look at the last five months? Can we do that? Yeah. All right, now. Oh, thank you. That's interesting, too. Okay. All right. This is the Fed. They would say this is the Fed. No, they don't blame the Fed. By the way, these are great charts, guys. Finally, we can go back 45 years. Who knew? Okay, yeah, something new. Yeah, look at that. That's not bad. Versus Whirlpool. That's a disaster. I don't know if that's the total return, because you used to have a really big dividend.

22:28Oh, yeah, that's a good point. My problem is, David, look, with Brad Jacobs, we're here right now with his QXO. That's not gone well either. No, I mean, in the end, I say Bitster's got something. He's got a real problem. And the real problem is no one to speak of is buying homes. The fewest number of people buy homes. And when you buy a home, you go get a Whirlpool. But if you don't buy a home, you don't get a Whirlpool. And there, that's my conclusion. Thank you. Well said. Thank you. And well stated. I knew that I could deliver for you. Those are some of the ugliest long-term charts I have ever, ever seen.

23:03Are they not unbelievable? I mean, don't they make you feel like Core Weave is the rock of Gibraltar? I don't know. It just makes me sad. A great American company. Well, go buy a Whirlpool then. We have them. We got them. Do you have the chime ones? I don't know what I got, but we got them. I know we got them. I thought Pitzer was a good salesman. He got me to buy a washing machine. Anyway. It's a sad story. Well, that's the last sad story we're going to tell here on Squawk on the Free. From here on in, it's all happiness. So don't go anywhere. Shugars of Coke pretty volatile in the pre-market.

23:36The beverage giant posts a Q3 beat. raises their current quarter profit guidance, strong global growth offsetting, kind of weakness in North America, Jim, but organic up seven. Hard to complain about that. Yeah, look, I think it's a day that's not a Coca-Cola day. It's a Broadcom day. It's a hyperscaler day. And then when people come back and realize that maybe A &T is not going to happen tomorrow and save you, you'll come back and look at the numbers, which were extraordinary. And it shows you, by the way, these were volume numbers. A lot of volume numbers are great. And they do have this Fairlawn, which is doing spectacularly well.

24:12Mexico is really good. That matter. Latin America is really good. Fairlawn, I'm sorry. But I will say this. This is really important. You have a new guy who runs Coca-Cola. And like James Quincy, you've got Henrique Braun. These are people of the world. They understand the markets that they have to be in. They are not hostage to the US. I tried the Fairlight. They sent me a whole bunch of Fairlights. And, you know, it's not refrigerated. And you can do it after you work out. And it's filled with protein. It's a great invention. And what I say is the reason why this stock is better than every other stock is they can't stop delivering.

24:54The numbers are great. So go sell it. Go sell it. Make yourself knock yourself out. And go have a Fairlight. They got banana coming out. And I feel very strongly that this is a stock you have to buy, and it's just to rotate. Yeah, man, 30 % so far for the year on Coke. I mean, amazing stock performance. It doesn't have a GOP-1 problem. It doesn't. By the way, the GOP-1, look, I read this morning. Wow. I mean, the world is upside down. Yes. There's the opening bell this morning at the big board here on Wall Street. It is Kimco Realty, a REED celebrating 35 years of listing. at the NASDAQ and Times Square, Leonardo DRS and the Henry M.

25:31Jackson Foundation for the Advancement of Military Medicine, highlighting Breast Cancer Awareness Month efforts to advance military health. And at SIBO in Chicago, it's Gigastar, a startup where individuals can invest in and trade shares of YouTube creators' future revenue. That's an interesting piece of paper. There. Come at me again on that one. Remember when NFTs were going to allow you to discount cash flow for celebrities? I remember when you were going to be able to buy a piece of Athletes, for example. Yes, exactly. Or a couple of those. There was a tight end formerly of the San Francisco 49ers who went public, I remember.

26:07Well, look, I think buying shares at Spotify is good. Maybe this is a version of Spotify. So this allows you to buy shares in, we've got to look into this, in YouTube creators. Yes. Well, look, we have a strip mall company. Yeah. Would you want to buy shares at a strip mall company or maybe YouTube creators? I don't know. Right. You don't know. I don't know. There's so many things I don't know. But one thing I do know is that Meta had no problem finding demand for its shares in filling not$22.5 billion of A's, but$25 billion. They increased it by$2.5 billion or some, let's call it roughly 10%.

26:48And so when you add the$12.5 billion of mandatory convertible to$25 billion. Big win. $37.5 billion raised there, and then another$60 billion yet to come once they have that C-share issued. That'll be next year, and that will be at the market. But enormous capital raise for Meta already, and then more to come. And the stock has hung in there right at where they priced it. Upsized. $6.25, right? Upsized, yeah. Okay, so I went into them, and I think one of the things that happens is when you deal with these companies, Carl, and they're babes in the woods when it comes to everything other than what they really do.

27:23and I say, listen, what are you going to do with the active market? And they go, we're going to do it. I know. They usually give it to some broker and the guy just bangs it every day, some percentage of the volume. And that's the problem with an ATM, is that if you're a person who wants to say, oh, my God, bro, that is really starting to roll. Well, take a look at what happened to Google. When I see ATM, I say S-A, stay away. because what happens is that you can't get any momentum because every time you get momentum, they bang it. Look at the Oracle. Yeah, sure, they got the ATM done. But it's an ATM for them and an ATM for you.

28:01You think that's what has bedeviled Google? I don't think they know, but I do. Wait, but Google didn't do an ATM. No, these guys have stock. They just did an enormous issue of stock back in April. No, but they're raising money. I'm sorry. Yeah, but not at the market, are they? Unless Alphabet is? I thought all these guys are out there. Certainly. I mean, Alphabet's close to the lowest since April. Well, I'm trying to figure out how, you know, I had thought that they are in there selling stocks. I'm going to go to Moon. Yeah, go check that out. But what I'm saying is that when you do an ATM, like, it seems like it's free money.

28:33And it's not. It hurts the stock. What do you make of this? We mentioned the Broadcom upgrade over at DA Davidson. They go to$400, Jim. Basically on the prospectus and the notion that they think that gets done, OpenAI gets done, stocks trading, in their view, like it doesn't happen. The chances that are near zero. Yeah. I don't know. That was such a positive piece. You know, people are so excited about it. It's like, hey, Davidson upgraded. I'm like, no, no, we don't want. It's just these earnings reports, these upgrades, they mean nothing to me. They mean nothing to me. Because right now we are so in flux that how have you decided that, oh, you got to buy Broadcom?

29:13I mean, I want to see earnings, OK? and we just don't see any earnings. And I want to see people stopping to, I want to see like, okay, so what is that company going to make? Because right now I can tell you what Coca-Cola is going to make and the stock went down. If you're going to tell me, look, I don't know what it's going to make, I don't know if they're going to be able to self-compute, I don't know if they're going to have to just play Elon Musk back, I don't know if this is to make it so they don't have to go to space work. But you know what? You're going to buy this thing. That's a really interesting point, Jim.

29:41Rich Bernstein has a great chart of total return for staples is outpacing total return for the Goldman AI basket for the year. For staples. For staples. Consumer staples. And that's the worst group in the world, I thought. Yeah, well, you can't eat Broadcom's XPU AI accelerators. Well, you can't eat PMI. You can't eat just... That said, they are going to sell a lot of them to the entity that is then going to be selling them or leasing them to Anthropic, Jim. So it's not like this doesn't result in sales for Broadcom. It does. Now, they may be backing up some of that with their own residual value guarantee on some of the debt, but it is sales of their XPUs.

30:23Okay, you have sales? That's great. Okay, I'll tell you one that has a lot of sales. It's called Micron, and it hasn't been able to move at all. Oh, here's one that has a huge number of sales and not a lot of CapEx. It's called Seagate. That is just awful. I've been seeing stocks. Well, you're talking about the stocks versus the sales, versus the underlying. So you're just frustrated with the movement of the stocks? I was thinking that a lot of people try to buy stocks. That's something they do when stocks move up. They do. Yes, I know. What are you trading again? I know. I'm just saying. What, are you trading YouTube movies?

30:55What do you have? I saw a brown ball. He's buying YouTube creators' future revenue. I am, by the way. I'm going to get big in that. That's going to be my new area of expertise. Recognize that the companies that have the big numbers, the price earnings models have been shrinking like you wouldn't believe. The point I was trying to make, Jim, was that you were not questioning, you don't seem to be questioning the fundamentals as much as you're questioning the movement of the stocks. Right, because that in the end is kind of what controls whether people watch us. They don't. They watch YouTube creators.

31:26That's what they watch. Oh, is that what they do? Yeah, they do. They don't watch us. If we went on YouTube, then maybe they'd watch us. Well, how much money do you make at the movies, Chief? I don't know. That documentary on Elizabeth Holmes makes a lot of money. No, no, you. Me? What do you mean me? Here you can watch us and maybe make money. When you go to the movies, you're going to be out$30. You're not out$30 by watching us and figuring out maybe I would buy a share of Western Digital. I'll tell you what's working today, Jim Arsom, industrials, Pentair, JCI among the leaders, Bloom Energy.

31:59Hey, Matt, boosting their stake. I think Bloom Energy is such a fantastic company. It's that guy hit very badly. It's non-combustible power. I mean, in an administration, we would all be working to pledge allegiance to Bloom Energy. And this one, non-combustible power, I just probably like a little bit of disadvantage versus coal. And it's there as the backup for all these data centers, correct? Yeah, you can do everything with Bloom. And Bloom has got scale. It's got backers. It's terrific technology. I really love the company. They kept at it for 21 years without doing anything. And I just think, you know, what can I say?

32:36It's just a fantastic company, but it's got really crushed. And now I think it's come back. David, by the way, on Alphabet, on their ATM, which is not an automatic teller machine, except for people who own stock. So there is an ATM that they have? Size and trust is part of a record-breaking$90 billion equity capital raise. Now, this could be wrong because it's on Google. Announced in June 26, Alphabet established a massive$40 billion ATM offering program for Class A and C. So if you look at that stock, the way every time it goes. No, you're telling me something I thought they were done when they did the almost$90 billion.

33:07I think a lot of the people who bought on that deal. But that said, Jim,$40 billion for a company that's got a$3.86 trillion market value. I'm saying that when you have an at-the-money deal, every time the stock gets the technical term mojo, they're in their machine. And you have to understand, if you don't know how to do an at-the-money deal, and I've done them, what happens is you just ruin the momentum. Sort of the inverse of a buyback, in a sense. Exactly. The inverse of a buyback. And, you know, you go to Alphabet right now, and I happen to love the people working out, but do you think they know how to do this?

33:41They outsource it to somebody. You know, they outsource it to someone who just says at the end of the day, I sold 180 ,000 shares at the market with the average weighted volume back. And they don't say to you, hey, you know what? It lifted 50 cents, and that's when I drilled it. I just drilled it. I clubbed it like a baby seal. Oh, God. There's nothing. Peter is not going to be happy with you. That's a phrase my nephew used. And I had to cut it out. And he just kept putting it in. I had to keep putting it out. But I did it in his honor. Now you do. I did. Oh, God, I love the guy so much. But, yeah, I mean, the ATM done poorly.

34:18Okay, fine. An ATM done poorly. Understood. Can lean on a stock. That's what I'm saying. I hear you. Because if you look at Google, man, how have you done if you're in on that deal? Right. You've been whirlpooled. You got Whirlpool. What call them? I'm just going back. They did that deal in, what, early May. So, yeah. You got Whirlpool. For the year, it's still performing quite well and outperforming the S &P. By the way, we are seeing a bit of rally in a lot of the AI-related names. AMD is up over 4%. Your beloved NVIDIA is up over 1%. Well, there you go. And Alphabet and Amazon and Microsoft and SpaceX are all higher.

34:51Well, NVIDIA has to buy back. I hope they were in there buying the darn stock. And we obviously saw a Broadcom. I think the fact that this deal got done is seen as a positive, not a negative. Yeah, but the river sticks us up. You've got the Anthropic S1 behind you. Now we're going to wait for a lot of the blanks to get filled in, including what the ARR number is for the fourth quarter, if we can get that, what they're going to end the year at at Anthropic in terms of their revenue run rate, which is going to be very important for the overall ecosystem. But generally, positive vibes this morning.

35:20Can I posit to you? Ocean waves, Jim. Ocean waves. Well, I love that, RCL. Can I posit to you that maybe all this happens because rates are good today? Rates are good. I mean, they're benign. Benign. Because I think we have two markets. Last week we had a day where the national government was down three, and it was like, oh, my God, he's going to go to war. He's going to bomb. What's he going to do? The rates are bad. Well, yeah, I mean, the Israeli elections are today, first one since the October 7th attacks. And there is this notion that if Netanyahu is unable to put together a ruling government that would be positive because there's a sense that we wouldn't act without that sort of...

36:01Yeah, and maybe that if oil goes down, like we were listening to Kelly Orteberg, you're not going to buy it. You're not going to be able to buy Boeing at 185. Now, oil Caribbean is rather incredible because that's the most discretionary thing. It is in a total breakout mode. And I defy you to tell me how that can go up so much and Dollar General go down. Obviously, there's an investigation. But, you know, Royal Caribbean offers tremendous value. Yeah. To David's point, you know, the broader build-out, Cat, Teradyne, LRCX, Jim, why isn't Glow Worm playing today? You know, I thought that that was a great quarter.

36:39And we sold it for the travel trust. And I said, if it ever comes down, I really want to go back and buy it. And I think that— We're talking about Corning here, we should point out. And Corning has a great long-term story. And if you sell it right now, I think you're making a very good mistake because in the end, fiber is going to replace copper everywhere in the data center. And corning is the best way to do it. I do not know how anyone could be let down by that corning quarter. But I've got to go talk to Wendell Weeks. On Squawk today. Yes, because holy cow, that was a great quarter. And I think that that's wrong.

37:11But you know what? Far be it from me to say, Mr. Market, you don't know what you're doing. It is funny to see that chart and see the peak back from the old dot com slash telecom boom. Don't bring that up. I told Wendell I would never bring that up. Well, I didn't know that, so I brought it up. I said to him, I said, you know, Wendell, I'm never going to bring up the crash and burn that happened to your company. By the way, they talked about it today on Squawk. And how Becky mentioned how it went to a buck or something. And then that's when Wendell came in. Oh, that's when Wendell came in. Yeah.

37:41He's such a gentleman. He's like 6 '7". Wow. Yeah. I talked to him. I was like, you know, it was like, but Jeff, he's the greatest. And I'm going to do more work, obviously. I was cursory, but I told people to sell Corning because it's going to get hit. And now I want to go back in and buy some because that's a real company doing real things. And the parabolic move is over. There. How are you doing over there? Okay. Yeah, I'm okay. Thanks for asking. Any calls? No, I turned the ringer off. I didn't know how to do that. I just forget. Because I had it on earlier. I forget sometimes. You know, Carl, I.

38:15I do point out that there are stocks that just have not come back. And those are the stocks that compete against SpaceX. There's just every day I notice that you've got to get out of telco. And it is extraordinary to see these stocks just get annihilated. It is. The commentary out of Verizon yesterday was interesting. This notion that it would take up to eight years for SpaceX to replicate. But they also said we don't discount their willingness to try. No, and Dan Schulman said we expect them to execute flawlessly, I think was his word, if I recall. That said we had a conversation here about whether SpaceX will just buy them all.

39:00Because, again, we were kidding when we said that because, of course, one would imagine that even that deal would be stopped by the DOJ. Just like a vacuum. Yeah, you can't buy them all. Tesla, Verizon, anything else? Yeah. But there's not much market cap left to buy. I mean, you know, you add them all up, they don't add up to a quarter of the market cap of one SpaceX. We're trying to find a starling salesperson for one of our places. Because, you know, I've had it with the Wi-Fi breaking down in the middle of the games. It's not fun. Really? Yeah, really. You mean the broadband? Yeah. Yeah. It goes down all the time.

39:39The broadband. Not the Wi-Fi. The Wi-Fi creates the signal. No, but when I call them, they say, yeah, well, you know, you live in kind of a rural area. I said, I'm like 10 minutes from Quakertown. Well, no, that's very rural. It's not where I'm in Pennsylvania. You don't know how rural that is. I'm rural. Jim, to your point, though, on the big providers of wireless services in this country, and if it does take SpaceX that long, I mean, there's got to be at some point a rebound, doesn't there? Well, that's what I keep waiting for. If anyone believes in eight years, you want to go buy these stores.

40:10To the extent that they really have been seeing a significant diminishment in market cap as a result of concern around Starlink. There's got to be some level. There's got to be some level. Yeah. Your work on Whirlpool at the Telestrator earlier reminded me, Jim, of Sherwin-Williams today and of Armstrong World, AWI, two other housing-related names. And they just do point a picture of minimal household creation. Yeah, I mean, that's what it is. I'm glad to see Whirlpool rally because I actually did feel that Mark did a good job on the call. And it is an inexpensive stock. But I do find that if it's related to the home, it's just a very, very tough, very, very tough justification.

40:52Whether it be roof, whether it be floor, whether it be window, whether it be door. We had a nice little mini rally in Poole the other day. Yeah, what was that about? Yeah, right. That was sort of the period where rates were descending below five. Right, right. Right. But I just find it's like I don't want to be I just can't be in anything home. And I know that Warsh is very concerned about that. But somebody has to be sacrificed if we're going to lower rates. Old of it, we have to crush inflation. Ultimately, you buy these. But I know that Berkshire bought Lenar. I mean, they bought some good home builders.

41:28Yeah. Yeah. Yeah. Guys, we did see the banks yesterday rally, I think, in part on the excitement around capital markets activity, which has continued. And maybe where rates are. But Goldman's still nowhere, man. Well, I don't know. It's up a lot from, I mean, it's very recent lows. You know, many of these stocks were negative for the year and now are back to being positive and have shown a little life. Talking about the big banks here. Why don't you go with Morgan Stanley, which had this consistent, remember, they raised a lot of money. They're in a lot of these deals. And they're rallying again today.

41:59Can I own both Goldman and Morgan Stanley? Why not? Why? I know. And one is much more weighted towards wealth advisory, right? That would be Morgan Stanley. They both obviously, for example, are going to be leading the IPO, largest IPO of all time, most likely, of Anthropic. That's a buy. They also were both leading the meta offering that we were just talking about as well. They're big winners in this. They're definitely going to be generating some nice fees. They're big winners in this. No doubt. They really know what they're doing. and they're very lean. They've all figured out a lot of AI. And I think, you know, I own Goldman.

42:32I should own Morgan Stanley. I don't think there's anything wrong with that. SoFi today as well, up 11. I said the best bank today, SoFi. I'm about to try to get it out. They do offer SoFi Mortgage. They have a lot of, they can't use number of members. Did you see the Katie Huberty chart suggesting that all this worry about agents moving money around, deposit yields are still below the trend line? I know, and I've got people who are so worried at banks that you're going to let the bots run free. And I think one day, maybe it'll be like when you're willing to give your credit card online, but not now.

43:06But congratulations to Anthony Noto. He said he's going to deliver a great quarter, and boom, he's huge. He deserves it. Nothing. We learned AMD invested a billion in that meta equity offering. No one was thinking about that. I'm sorry. I brought it up because somebody handed it to me. I wanted to read it. Okay, Whirlpool's up. What's the issue? Whirlpool. Yeah, you're sitting there talking about$1.7 billion. Sandisk is back, Carl. As we go to break, watch bonds. Fed meeting begins, of course. Decision out tomorrow. ADP slows for the second straight week, although durables weren't bad. We will get a five-year note auction today.

43:42Conference board, new homes in about 12 minutes. The magic words, higher realized pricing, as steel prices are at basically a four-year high. And the tariffs, but the Antipali. He's done a great job. He's going to be on later today. And you've got to listen to him because he really understands America. We'll get to stop trading with Jim in just a minute. Let's get to Jim and stop trading. It's so hard. I mean, NVIDIA is barely up now. It's up to$2.40 earlier. But I look at Dell. Dell's 18 times every week has come down just after just a remarkable quarter. It was the last good quarter before this all started.

44:18I just point out, OK, you really believe it's coming back? Things are coming back? Buy Dell. Dell's got sensible business practices. It's doing really well. Great relationship with NVIDIA. Knows how to put up, knows how to make a data center turn on. So that would be the one that I would go for. I think that people have to recognize you've got to want, and that's the one I've wanted to own for the trust and never had a chance to. Just blew it again by talking about it. But Michael's good. Yeah, you had kind things to say about him on social yesterday. Yes, he's doing some stuff to be able to make it so.

44:51people targeted zip code. Not everybody gets the money. I've always felt that was right. Like, you know, my kids, you know, we don't need the money. Why not just make it so the zip codes? And that's what Michael Dell spent all the time doing, which is, I would call it common sense. He's filled with common sense. Incredible man. I have Okta. Every day I'm addressing cybersecurity. It's just too dangerous. And we can't just have it happen and pretend that, OK, we covered that. And then Richard Tobin, an old-fashioned conglomerate. Let's see how he does. He's very tough on the analysts. You've got to be very careful.

45:24I'm a little scared. Oh, really? Yeah, I'm shaking it. I'm shaking it, boss. I don't know. You're tough. I'm not worried. Battle testing. Guys, good. Good to have a regular... Just got to get in the routine. Yes, indeed. My sister says get in the routine. We'll see you tonight. You've been listening to The Opening Bell on CNBC's Squawk on the Street. All opinions expressed by Squawk on the Street participants are solely their opinions and do not reflect the opinions of CNBC or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet, or another medium.

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