pick your market to look at whether it's yields or gold or bitcoin or anything, but this was definitely taken to heart by the markets, even if it is an outlier or if we've got a way to go or whatever. interesting today, just us again tomorrow, i think, sorkin. i need you. you need me. >> we need each other. >> it's nice. "squaw "squawk on the street" is next. ♪ good wednesday morning, welcome to "squawk on the street," aii'm carl quintanilla with jim cramer, david faber at post nine of the new york stock exchange. all-time highs in sight as we get our first deceleration of the year for cpi, up 0.3%, touch light on headlines, some relief in services, the ten-year is down to 4.35%. our road map begins with

that macro picture. consumer prices down. retail sales flat. jamie dimon calls on the u.s. to get its fiscal house in order. plus the intensifying a.i. race. google is rolling out its most powerful a.i. assistant yet. and a bipartisan senate group out with a new report on how best to regulate the technology. sara eisen is live from jerusalem, speaking one-on-one with israeli prime minister benjamin netanyahu. let's get to the cpi print. as we pointed out, 3.6% core year on year, jim. more than half is gasoline and shelter. >> it's only going to get better. gasoline, obviously, oil's come down. iea with some reports saying it's not -- shouldn't even be at this level. food, we're starting to see some things in food that indicate that things are getting better. i mean, for instance, one of the things they said that was bad was cereal, but as we know, david, i told you that kellogg's says there's too much cereal.

we're going to see buy one, get one. the things that people are being hurt by, except for shelter and insurance, are going down. did you see the refiners? collapsing. >> yeah. all right. copper keeps going up. >> in reference to what? we don't use copper in our homes. >> no. datacenters use it a lot. >> we don't live in datacenters. >> we'll get to -- we might one day. market response appropriate, then? >> i thought the market response was spot on. i do believe that this was the brown shoot quarter i've been waiting for, brown shoot month, and i know that people are saying a september rate cut is on. if you go to that home depot quarter, which was frankly sobering and somber, i think you would say, wow, they better start cutting now. it's too expensive to build. it's too expensive to rehab. if you have to get financing, you're not going to do it. so, it's a waiting game.

carl, the home depot people were -- they were, i would say, morose. they were morose. >> saturnine? la lagubrious? >> ecom down, furniture down, to your point about home depot. >> i think some of these are -- that's one of the reasons wayfair could still be on. we have an economy where it costs too much to hire a contractor to make things better. that's the service part that they address, which therefore makes it so you don't buy more furniture. you don't really do anything. and that's what they're saying. people are sitting on their hands, and that is the world's worst for home depot. garden season will be okay, not enough to do the job. big ticket just not selling because people aren't doing anything, because if you have to finance, which is what you have to do with a big project, no one's willing to finance because

of powell and rates. >> there are a number of industries and/or at least companies that are relying on a business pickup from people buying and selling homes and moving. >> yes. 10% of the economy punches above its weight. >> we talked about our parent company in terms of broadband subs. >> you work that in. >> all the cable companies, it tends to grow. there's a lot of things that change when somebody moves. it's not just getting new furniture or refurbishing. >> it's the most important thing for the retail economy because you're not -- apparel is up again. i continue to look at this and say, they're not including temu. you want to knock down apparel, pick the place -- by the way, tens of millions of people buy from temu. do you think the people who create the news release, bureau of labor statistics, have ever heard of temu? >> yes, of course they have. >> no, they do not. >> of course they do. >> if only servicenow did the data -- >> there you go. >> do you think these people are

living in a dark cage somewhere, not part of the real world? >> 100%. hundo p on that one, partner. >> they have their pocket calculators still? >> they don't know. >> their slide rules. what do you think they're doing? >> they're going to macy's. no offense to macy's. and the people who got on the board, which you didn't talk about because you're so busy c killing the paramount deal. >> maybe they're going to sears. >> holy cow, sears has nothing. sears lives in the stanley black & decker world with craftsman where my father said you can use a hammer for three years and take it back. >> one of the great sears brands for sure, jim. as for cpi, jim, oil now the rolling 30-day decline, 9%, worst of the year. you think next month's print might also be -- >> it's going to be fantastic. you're going to hear summer driving season. we know that the domestic travel scene is not that strong. i call back, david, the

disney -- remember the theme park number? they were concerned. >> yes. hugh johnson, the cfo of disney, the wording he used in particular -- >> that hugh johnson, cfo? he killed disney. >> he really hurt the stock price. what was it? moderation? was that the word? >> i don't think he recognized that this was not pepsico. it was not frito-lay. they never had any. the stock you want to be aware of is valero. they're a refiner. after having a halcyon moment, no, they're getting squeezed. take province. kaching, kaching. >> are you ready for a new string of highs in equities? >> until may 22nd when everybody's just keying for nvidia. and now they're blaming jensen for making more money. is that ridiculous? people are saying that jensen's making too much money. i mean, versus musk? and by the way, musk deserves

every penny. >> yeah, we can -- we'll start talking more about the tesla vote for both the compensation plan and the reincorporation in texas as it gets closer. june 13th. it's less than a month away now, but back to jensen. i mean, he's created a little bit of value along the way, i would think. >> i would say so. he certainly -- it's not like he changed his sartorial impulse. >> no, his immediate ceo is getting paid 40 million bucks now. look at that stock. how can anybody argue? that said, he's a huge beneficiary of it as well, and he's worth, what, $40 billion now. >> david, everybody's a billionaire, except for you. by the way, home depot is up three. >> on this sense of relief in rates? >> yes, the relief in rates. because that's what they said they needed because -- i didn't mean to offend you. i'm just saying we have so many billionaires. >> that's okay, i know that i'm not a billionaire. >> here's a billionaire who's

worth it. i think musk is worth it. but when you go back over, parse line by line on home depot, they are saying, unless rates come down, it's a rating game until people feel like, wow, you know what, i'm sick of my place, i got to redo it. that's not the -- you can't have that. people could just say, you know what? i'm sick of my place, but one day, i'll do it. and the contractors didn't lower the prices. >> do you think walmart ratifies this view that it's safe and secure? >> i think walmart can roll back food prices. when you go into the -- when you go into the natural part, the vegetable part of walmart, when you go in there, david -- david, be you might as well be at whole foods. >> really? it's that beautiful? >> yes. >> thatnice? >> might as well be at whole foods. >> how does it compare to trader joe's? >> trader joe's is just a free-for-all. >> you're unhappy with trader joe's? the prices are pretty compelling. >> yeah. but david, i'm not going to go

into that mosh pit. >> i didn't find it that bad this weekend. i really, actually -- the line moved very quickly. i got what i needed, got out of there. it was mother's day. >> that's the one day of the year that you shop? >> that's the one day of the year that i shop. >> now i know the day. >> it's true. if you want -- next mother's day, call me, i'll pick something up for you. >> my mother's day presents weren't appreciated enough. she doesn't watch. i can say whatever i want. >> didn't go over well? you didn't get her another bathing suit from temu? >> one, i know she wants to take it back. i have the receipt, but it's awkward. >> we're chopping away, but your point about nvidia is good, jim. the major catalyst of the month, cpi, now we'll move on to some late high-tech earnings. >> what's incredible is that -- this just shows you the true bull market. there's a piece out today about dell saying dell is the linchpin. >> morgan stanley. >> and the stock is up 5% on a research piece. this is extreme market behavior,

and notice that gamestop is coming down, which actually you would say -- a bull would say, good, we need to wrench out that particular -- >> you mean after 120% move in two days? >> i compared best buy. one has 43 billion in revs. the other has -- i don't know. >> i don't know what the number is. >> it's incredibly low. and i just want to say that the people who are doing this, who are running it, they're going to get away with everything because the government does not seem to care or is aware of what's going on. >> what are they supposed to do? there's no laws against it. >> there was a law made a distant moon ago in '34, which said that not only -- there will be no this stuff in may. no. i think what happened yesterday, jay clayton came on, former s.e.c. chief, and said, this stuff shouldn't be allowed to happen. they don't really have a law to stop it. >> that's my point.

they don't. >> no, they don't. but he was saying that perhaps it's not such a good thing. to have revenues of $5 billion versus revenues of -- >> it does seem to undermine certain parts of the market's integrity. >> that's all. >> it's easy to say that jay gould had this whole time. >> i think you would embrace it in a way, because it's bringing more people back into the stock market. >> are you not following me on twitter? when the options open, they will try to do a pincer move, try to get the options -- the guys, the market makers, trying to get them short and jam it up. >> we've got a fresh roaring kitty video this morning with clips of various movies saying, "back in the saddle." >> i love that. ""blazing saddles."" >> great movie. >> our sara eisen will join us live from jerusalem in the next hour, fresh off a major interview with israeli prime minister benjamin netanyahu. here's a quick look at their

conversation. >> there's also a report today that the u.s. administration is pushing to release a billion dollars of weapons aid to israel. can you confirm that, and do you have a sense of when that will happen? >> i hope it happens soon. look, i appreciate the help we receive from the united states from the beginning of the war. president biden came here, he sent also these battle carrier groups, and we've got weapons. yes, we do have a disagreement on gaza, rather on rafah, but we have to do what we have to do, and you know, sometimes, you have to -- you just have to do what is required to ensure your survival and your future. we cannot continue into the future by having hamas retake gaza. it's not only would be a tremendous victory for hamas. it would be a tremendous victory for the iran terror axis, because iran is trying to envelope us with a noose of death, which hamas is one component, and that victory is a victory against iran. it's a victory for the moderate

arab states who are not openly but who understand that their future is involved also with our victory against hamas. so, we are doing what we have to do, and i hope we can see eye to eye with the united states. we're talking to them. but ultimately, we do what we have to do to protect the life of our nation and to prevent such savageries from being repeated again and again and again. >> full interview is coming up in the next hour. meantime, axios reports that netanyahu ranted to his security cabinet, saying, "we are not a vassal state of the united states," referencing so-called red lines and delays of shipments of weapons. >> always have to go back to the yom kippur war and talk about kissinger. there was a -- some people had argued that israel was a vassal state. they had not resupplied. history seems to have very much forgotten. it's not that long ago. wasn't that long ago that

benjamin netanyahu was in high school, rivals with springfield. he played soccer ahead of me. few years ahead of me. there's a fun fact for you. >> i appreciate that. thank you. >> you're welcome. we'll take a quick break here, take a look at the premarket. busy session in the wake of cpi and retail sales, awaiting walmart tomorrow. we'll get to these comments from jamie dimon, talk some google i/o, news on tesla and boeing as we once again take aim at fresh all-time highs. back in a moment. ving traders es to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab.

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more volatility for the meme stocks ahead of the open today. shares of gamestop and amc both down in the premarket, still up triple digits for the week so far. jim, you were just talking about the battle between the buyers and sellers. >> right, well, there's really a question about whether anyone is shorting the stock to the buyer. last night, around 4:00, the buyers came in and just blitzed it higher, and it seemed like they were taking, taking,

taking. there were no sellers. maybe there were sellers what took an order to cancel to sell, but then sellers just flooded into the market at 4:30 a.m., like heat-seeking missiles. and then, they tried to recover it, took it back to $53 around 8:00 and now they're back. there are real sellers, and that's what they didn't have yesterday. so, they have to wait until options start, and then you have to have -- you have to short the options to be able to make the trade if you're a market maker, and they'll try to blitz them. but right now, the stock's very heavy because the valuation of it, no one can figure out how you can possibly get to the 40s. i did a compare last night to best buy, because they had the same market capitalization and one has $5 billion in revenues, one has $43 billion. one is making $16 million. is other is making more than a billion. they're both gaming. you buy gaming at both these places. people were doing the memes that they want to do a comp, a

compare. compare right now to best buy, and you'll understand why you're paying too much. >> are you saying the craze, to the degree it's been, a mania of sorts, has peaked? >> i think that the company's a little wiser. i think that there is no investment case, and there's not a lot of shorts. they need more shorts. they need more short sellers that they can bust, and right now, they haven't succeeded in making these people cover. only 24% of it is short, david. that's not enough of gamestop. that's not enough to generate a true short squeeze, typically. >> it's not? really? a quarter of the outstandings being sort? >> it used to be a hundred-plus. >> it was obviously when the meme stock craze began years ago. it was a much higher percentage. that's true. >> i will say -- >> although, they've suffered some serious pain. >> they did have a profitable -- they did have the last 12 months, they were profitable, but i don't think they're making a lot of money now. un this is a very bad time to be in that particular business, okay?

bad time to be in the gaming business. >> yes, it would seem to be. even if you're delivering it digitally, if they somehow are, you know, in that transition? >> that's free, you know? >> brick and mortar. have they come up with a new strategy under ryan cohen that you're aware of? >> a mystery. i suggested many different strategies. >> i'm aware you did. you also have some land in new mexico if they're interested in that. >> i have 600,000 acres. >> maybe a gaming -- a gaming theme park. >> i think that anybody who's in the gaming business would be wise to think about the 600,000 option. when walt came to florida, there was nothing there. >> yes, yes, yes. it was a swamp. >> there was nothing in new mexico. my place is midway between denver, which is a city of -- >> success. >> obviously. and austin. that's -- that used to be a city of success. >> sounds like datacenters to me. just go for it. datacenters. >> don't forget water. >> put up a power plant. >> okay. >> yeah. >> this is tba. >> we'll work on it. >> let the government do it.

biden will do it. he has that -- arizona's a battleground state. he'll do it in arizona. he'll do it in michigan, nevada. >> now we got debates going on. >> we got debates about debates anyway. >> yeah. >> very exciting time. >> oh, it's exciting. >> we'll get cramer's "mad dash," countdown to the opening bell. 5,264 is the number to beat. the march 28 highs. stay with us . (traffic noises) (♪♪) the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts.

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here we are again. it's hump day as we like to call it. >> yes. >> at "squawk on the street." time for a "mad dash." we got six minutes before we get started with trading at the new york stock exchange. we're going to come back to housing here and talk toll brothers. >> we talked gamestop, dell. how about a company that's at the crux of what's going on in the world right now? cpi. toll brothers. you know i said that's the best home builder. they are reporting on may 21. this is going to set the tone. you have toll brothers on the 21st. then you have nvidia. it's a one-two punch to try to figure out what's working. wells fargo raises its price target, $142 to $150, ahead of the quarter. historically, a dangerous thing

to do because you got to go through the thicket of interest rates, but look at this. this is america's premier home builder. their homes are between $900,000 to $1 million. housing is up 35% from 2019. this is emblematic of both everything we love about our country, which is you can buy a new home, and what we don't like, which is they're not putting enough homes for powell. but they don't work for powell. they work for the shareholders, and they have been a monumentally good company. for years and years and years. and bob toll was an amazing travel man, philadelphia. >> i'm aware. well aware of the family. we've got an opening bell just a few minutes away. don't go anywhere.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. america is -- spent a lot, and during covid and after covid, our deficit is 6% now, that's a lot. but obviously, that drives growth. so, any country can borrow money and drive growth, but it may not lead to good growth. america should be aware that we got to focus on our fiscal deficit issues a bit more, and

that is important for the world. at one point, it will cause a problem, and why should you wait? the problem will be caused by the market, and then you'd be forced to deal with it and probably in a far more uncomfortable way than if you dealt with it to start. >> that's jamie dimon talking to wilfred frost of sky. it's been echoed by his colleagues in recent days. >> the one thing he did say, i'm starting to hear percolation from the people who are in infrastructure, we keep thinks it's just a waste of time. i know larry fink thinks about that. a multiple to growth that can actually help the gdp. david, we have to grow our way out. the only way out is to grow our way out. >> we got to get tax revenues up as well. >> we have to grow. >> but that said, when interest costs represent an $800 billion cost for the budget, approaching -- expected to get to a trillion dollars a year.

that can have a depressive effect. >> neil ferguson has been saying if the amount of interest is higher than defense, that has historically been the downfall of a company. ferguson is a very smart guy, and he's written some great -- a great book about the economy of war. fabulous book. >> let's get a look at this open. the big board, the cnbc realtime exchange, it's pinterest today celebrating its fifth listing anniversary, and jim's going to talk to bill ready on "mad" tonight. >> that company, along with reddit, and even snap, have changed it so now you have the big ones that are kind of like abc, cbs, nbc, and then you add this tier, which could be like tnt or cnn, whatever you want. how is tnt doing? do you have anything new? >> no. i don't. tnt was great to watch last night. i really enjoyed every minute of their programming. >> the game. >> from 8:00 until 10:30. >> speaking of which, at the

nasdaq, it'lionsgate. >> you know i don't like huge up openings. i wish things would cool, but there are many reasons to buy stocks, and i kind of echo the fact that you've got this thing going on. google, amazon, meta, apple, they're back. but so are the -- are companies that are banking. banking's been incredibly hot. the food stocks have been hot. utilities have been great. i like the transports. talk about everything other than health insurance, which i'm not going there, david. not going there. >> not going there? >> too high. >> pretty much everything is up right now. obviously, again, a minute and a half into trading this morning. >> you mean there's more to it? >> there's a little bit more. >> toll brothers is up five. now, that's it. it's just too easy. if you're bullish -- even if

you're a bull, it's too easy. the home builders work. it's a lower rate environment. sell gamestop, buy toll brothers, apparently. >> apparently, today is the -- yeah, sell gamestop, at least right now. but that could change very quickly. banks are also having a nice early move here. but we'll see how we moderate. >> you sound a little skeptical. >> i'm not -- i leave the market prognostications to you, as you know. >> thank you. >> september, i don't know. right before an election? we're really going to get a cut? >> look, unemployment has to go above 4%. it's got to go above 4% in order to make it work. otherwise, powell's going to look like he's just throwing fuel -- settling on fire. but if we get unemployment above 4%, then i think he's got something he can say. right now, it is -- david's right. i think you have an economy that's still burning hot, and one of the things that's burning

hot -- i don't think we can talk enough about the construction of datacenters. they're everywhere. they're trying to figure out where to put them. some states have, like, 40 of them, because they have cheaper power. but there are whole states that can't afford them because power is too expensive, and it's funny because we saw, actually, power was down a little bit. we've got to be very careful, because we better have -- i had next tracker on yesterday, and they're the ones -- really nice move, by the way, in the stock. they're the ones that help it so that you can get more power out of solar, and the problem with it is is that solar is going to be 25% of the grid by 2030. wind's got to be 25%, or else we cannot meet the demand. nxt up today. we can't meet the demand of the datacenters without wind and solar, because nat gas isn't going to do it. >> speaking of which, jim, big google presentation. deirdre bosa talking to sundar pichai on our air.

the ceo of perplexity said, in a world where everyone doesn't have to click on links, the biggest loser is google. >> i know. that is a very controversial thing. the other day, i was looking up -- david, you'll like this because it's very much what is going on in the world. i was doing -- i'm doing a long take on billionaires, and i'm including barry sternlicht because some of his spacs have been suboptimal. you go to google and google the spacs. you get nothing. you go into chatgpt and say sternlicht spac, and you get a list of every spac, stock symbols, how they're doing. it's like, oh my god. that is like having five researchers. >> yeah. it's an interesting moment for alphabet. we've been talking about it for some time. the existential crisis that we sort of sensed might be coming was resolved very quickly by investors, and they seem to say, yeah, no such crisis here. you can see that little down move earlier in the year. i think that was sort of it.

it's been straight up since because there is a belief that they are going to be just fine. obviously, they dominate search. 90% of all search. and the question has been, in a new world of generative a.i., are they going to lose that grip, that market share? they introduced yesterday a very much new way, which will be a.i.-generated. it will give you sort of a summary. it will be available to most if not all people who use google at some point, and -- >> well, you have to play with it. >> you do. you're not going to get links, but advertisers obviously are still going to be a part of whatever is generated. i think there's also a concern for those who rely on the links being clicked to take them somewhere else. for example, publishers and people who rely on the traffic from search to come to their website. so, that may be as much if not more fallout from it than continuing to wonder whether they have that iron grip on

search in the generative a.i. world as opposed to the previous one. >> let me add to that. let's say i -- obviously, i'm a gardner, and i'm trying to figure out what kind of tomatoes i want. i could go to alphabet, i could go to claude, my buddy. i went to pinterest. and pinterest had some really good takeouts of what it recommended for -- i like these german tomatoes. you click, and it takes you to a very good store. it didn't used to do that. i bought some. and that is a very nice lower end of the funnel. again, this is what's happening. you get these sites like pinterest, and suddenly, you see the numbers spike. they have 500 million users, and you're able to buy things. >> how is -- give me the five-year on pinterest since it's -- >> it did nothing, but bill ready came in with a game plan to make it a relevant site and it's a remarkable change. >> there it is. obviously, it's nowhere near the covid -- the pandemic -- >> people were sitting at home

dreaming about travel. but now there's many different sites, and i find that if you're doing something arts and crafts-y, which is, i know, another bailiwick that you specialize in, you want to go with the pinterest. >> speaking of advertising, which obviously is what -- what alphabet relies on, not to mention meta, it is the up-front season, and disney had theirs yesterday. jimmy kimmel, bob iger showing up. >> kimmel was great. >> kimmel was really funny. >> the bit about bundling. bundling is like getting in a splee sleeping bag with your uncle because you don't want to freeze to death. >> this is not just churn, it's churn-obyl. >> that's really good. >> he also came after the new product introduced yesterday by brian roberts right here at our parent company called stream saver. remember, that is the combination -- we don't really know pricing yet of netflix,

apple tv, and peacock, thought to be potentially for netflix, certainly an opportunity for them to reduce churn if they need to. interesting, the inclusion of netflix in that bundle. he said, stream saver sounds like a cat 30 you might find for sale on tuckercarlson.com. thanks. just leaving me out there. at least he laughed. now i get fired, and you stay. >> oh, yesterday was my fire day. now you get fired. >> it's my -- i'm fixing to throw our executive producer under the bus. he's the one that wanted me to do it. >> i thought about you yesterday. morgan stanley is a good example. they don't have a single overweight in cable sat except for comcast, given some of the attributes david mentioned. >> parent company of this network, comcast has a lot of optionality that i think they haven't taken care of. buyback has not worked. dividend has not done anything.

so, i think what you do, if i were to do a piece on comcast for "mad money," i would say, here are things that don't work. i would say that about -- i can't say that about the cable companies. they don't have the optionality, but if you come in with a package that has maybe the most powerful companies on earth as a bundle, and your stock is down, then i think what that says is, okay, that didn't work. let's think about what -- >> well, i don't know that it's viewed as a market-moving phenomenon. >> the two best companies in the industry? >> it's not unimportant, but it's part of nbc universal, which is a smaller part of the overall company, as we've gone through it so many times. this company moves on its ability to generate free cash flow, its broadband subs, those are the key issues. we don't need to go over it again. >> wireless is cutting into those. >> without a doubt. >> when you have a balance sheet like that, you use it to be able to -- to reinvent the company. there's nothing wrong with that.

if you're -- some really unbelievable companies like a company that i'm quite familiar with that you are too. ge. i mean, larry culp did not come in and say, we got to do exactly what jeff did because it's the blueprint. >> no. no. but we're in a very, very difficult position. >> their balance sheet was far worse than comcast. and yet they still managed to get -- >> larry culp is a more than admirable -- >> how about rtx? that was remarkable. the carrier. notice they changed stripes. sometimes, you have to change stripes. you can't be the same company. >> these pinterest people really like to cheer. >> well, it's their fifth year. >> they're a very enthusiastic bunch. >> you'd like to kill that, wouldn't you? >> i don't like enthusiasm. i don't like spunk. i'm like lou grant. >> how about splunk in they merged with cisco. >> we're going to get them, yeah.

>> tesla is going to start to become more of a new story in terms of that vote on june 13th or prior to june 13th when the company's holding its annual meeting on both the reincorporation in texas and the 2018 comp plan that was rescinded, essentially, by chancellor mccormick in delaware. they are still doing it under delaware law. in other words, they're resubmitting it to shareholders under delaware law, and it's interesting, the two votes are not quite the same. the reincorporation in texas requires 50.1% of the outstanding shares to be voted in favor of reincorporation. so, part of the task for tesla is going to have to get retail investors, for example, to vote. >> you mean that elon musk has to start kissing babies? >> he's going to have to get out there and kiss babies. they are requiring people to engage with with the proxy and actually vote in favor because a no vote doesn't help them.

they need 50.1% of the outstandings to vote in favor of reincorporation. when it comes to the comp plan of 2018, which is worth some $44 billion -- remember, by the way, it was options. it wasn't restricted stock, the way so many other ceos get it. and so, really, there was a lot on the line for him. it could very well have ended up as a big zero. obviously, we know the story of tesla from 2018 through now in terms of the total return, in terms of the move to profitability, and everything else that occurred at the company over that time period. you're looking more recently, but we can go back to '18 and see. that vote requires, ob -- obvio, musk can't vote his 13%, and you need a majority of the votes that have been received to be in favor. so, it's not the outstandings there. it's a majority of the shares voted need to be in favor of saying yes to his comp plan. >> wow. so, what are the blackrocks going to do? >> i don't know. >> how do they -- vanguard. what are they going to do? state street.

what are they -- what are these different, you know, proxy guys -- >> everybody's going to weigh in it on it. >> do you think there's a chance that any of those will look at the krcontract, which is ironcl, and say no? >> i don't know. a number of big index funds voted against. it still was approved, significantly so, 73%. it was a contract. it was an odd choice in some ways. there are certain legal scholars would say for delaware to intervene in, given it was business judgment. >> wow. business judgment. >> chancellor mccormick pointed to what she felt like was a board that was unduly influenced by mr. musk. obviously, tesla says, no, and we'll do it again under delaware law, and this way, we won't have to have any lawsuits about it. we'll do it again. >> this is coming u. thp. this is going to be a seminal issue. this is a man who's created more money than almost anybody else,

created great wealth, and has a pay package that, as david said, could have left him nothing. i find this is actually appalling that this man has to be subjected to this, but you know what? it's america, and judges are powerful. >> some constituents in the shareholder base would argue it's about disclosure. meantime, our eunice yun posting a tesla model y is called an example of the past. you can imagine chinese competition will heat up. >> i keep talking about the 100% tariffs and how they're going to police -- they're going to police mexico. bill ford had said this was the existential crisis for ford, and now that's over. >> it's an important point, because you've made the point -- obviously, we're not getting any chinese evs in ourmarket. it's not happening. they aren't going to compete with our automakers' evs in markets around the world and

probably win because they're going to be so much cheaper. >> win everywhere. >> but you've made the point, can china move the manufacturing to mexico and take advantage of nafta? >> that trojan horse, pa apparently, is over. you're not going to be able to build those cars in puebla and ship them up. monterrey, not going to happen. ford and gm, huge winners. nobody cared yesterday because those companies are in the bottom eighth of the s&p because people feel that, well, they're just going to do poorly. >> the chinese build manufacturing here in the united states and hire united states citizens to make the cars? >> i think that's what they ought to be in washington saying, but they don't seem to want to play ball. >> yeah. >> jim, it will be interesting to see if the sell-side reacts to the data today. bmo just off the 5,600. that's going to be a street high out of brian belski.

>> brian has been dead right, and i saw him here the other day, and he has been just terrific, and ed yardeni has done some good work. the bond vigilantes are nowhere to be found. rates went up too high. everyone thought this was the spike to five for the ten-year. that didn't happen. you have -- it's almost impossible to find a group that is out of favor. almost impossible. let's see. i mean, you have boeing, what, about to be perhaps -- >> the doj. >> i don't know how you -- you can't do that -- doj, i mean, they got to go after -- you can't go after a company. there is no companies. it doesn't affect anybody. go after a person, that changes people's attitude. but i just find that other than that company, aerospace is incredible. so, i just find, over and over again, it's very difficult to find an area of the stock market that's bad. very hard. >> yeah. morgan stanley with a great piece today on summer travel, especially at the higher income

levels, jim. their intentions to spend a net 32% increase in spending intentions for the upper income strata. >> the mastercard survey, which we covered extensively yesterday, has some great things to say about travel. and by the way, steve squeri from american express, he told you about this very early on. we did have a level of travel that did, you know, everyone was going away after the pandemic, but now we're sorting things out again and normalizing. wealthy people are traveling. david, the billionaires, they're traveling and forcing people off islands. >> yeah, they don't travel the way we travel. they just make a phone call, get in their plane, and they're off. >> did you revise fitzgerald? >> green light? >> yes. they're -- >> they're not like you and me. >> they're different than you and me. they are. i know, i know. i know. >> plus, i mean, how many times? >> every day, i wear jeans. >> are those brioni jeans? >> they're nice.

they're very nice. i only wear the best jeans. >> the exchange doesn't mind anymore. it's all right. >> when i went to see zuckerberg on, i had $12 pants on. he liked them. >> of course he did. >> they're hot. >> watch bonds today in the wake of cooler, at least, headline cpi print. we did get the ten-year down to 4.35%. just a touch above at the moment. interesting to see the vix with a 12 handle for a few minutes. we'll be right back.

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coming up at the top of the hour sara eisen, live from jerusalem speaking one on one

with israeli prime minister benjamin netanyahu. we'll be right back. stay with us.

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if you want to know the company that captures it's vertiv with the stuff in a data center. i don't know when this can stop it has a 42 multiple. bank of america raises it to 115. i think it's going to go there. data centers we can't get enough of. jim, pins tonight? >> yes. very, very excited. i think bill ready has made this turn, i'm saying there's a couple of winners left. pinterest is a place to put ads, and reddit. they're replacing tv. that's what they're doing. they're surpassing. they are. replace it. >> we have a minute or so. we talked rivian is down a lot. i don't know the reason. you sent me the latest on china sales but that's tesla related

and maybe a stock -- >> that's why tesla numbers are bad. >> not sure why rivian are down. >> it did have a bump there. >> maybe somebody else knew? >> the question with rivian, do they have the horses to stay in business. i think the situation got people, lucid is getting people. i think a lot of people love rivian but you have to feel like you have tucker. >> tucker as in the car -- >> yes. >> jeff bridges. >> that movie. >> was that cope la? >> yeah. >> it was a coppala movie? we look forward to tonight. after the break, live to jerusalem for that interview with israeli prime minister netanyahu as the s&p and nasdaq holding all-time highs. where you grew a dream into a reality. the all new godaddy airo. put your business online in minutes

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good wednesday morning, welcome to a special hour of "squawk on the street" i'm carl quintanilla with david faber here on post nine of the stock exchange. we'll see sara eisen in a moment she's live in jerusalem with the prime minister of israeli, benjamin netanyahu. in the meantime, here's a sneak peek. >> i represent the broad majority of the jewish people in israel and many non-jews. our common future is on the line we have to win. meantime, a check on the markets. big story of the morning is the first to headline cpi in about six months, comes in a tenth light. relief in services, super core eases off. we'll talk about it with the ten year back to 4.38. >> we have housing data that was out a moment ago. rick santelli has that. >> yes, our may read, housing market sentiment index,

expecting the number at 50, a disappointment. comes in at 45. that is the second weakest level of the year, 44 the weakest, that was in january. just for context, precovid, february of 2020, this was at 72. business inventory out for the month of march expecting down .1%. last month revised to .3. down .1% actually to find a bigger inventory drop going back to march of last year, so basically one year. carl, david, back to you. >> rick, thank you so much. busy day for rick over there. the latest inflation print coming in lighter than expected. cpi rising .3 in april lower than .4 economists were looking for. retail sales a goose egg coming in flat. joining us for the first time in a while is former pimco chief

economist, paul mccully. good to have you here. >> good to be here. >> how would you characterize it? >> fully benign after the slap around the head in the first three months and i think the market is exuberant. it's consistent that the next move is an ease and that's what a forward looking market should be discounting is the next move. and there was talk about the notion, could there be tightening again and jay powell just k kiboshed that yesterday. >> how many would you need to string together to get the evidence powell wants? >> probably three. we had three slaps against the head. i say that in some respects tongue in cheek because it's a

matter of confidence. we didn't see o.e.r. crack today. i think if you got o.e.r. to crack that would reinforce the proposition when they're going to do it. the big issue is the direction is down. >> but we are to your point waiting for shelter to come down, whether it's rents or o.e.r. opener equivalent rents as well. >> we are and i think the entire community on wall street and the fed and everywhere else is scratching their head how long this is going to take. chair powell mentioned it yesterday you know the new lease is coming in, but how long is the lag. there's something to be said for dealing with the last lag as opposed to the last mile. >> what do we know then? if everybody is scratching their heads about it, have we learned anything in terms of when it's finally going to crack? >> hopefully we've learned some humility. i think chair powell would say

amen to that. you know the piece part is figuring out when it gets there is difficult. >> goldman has a piece about residual seasonality in core. they think there are categories, we might get some pay back on the down side in the back half. does that make sense to you? >> yeah. i have no quarrel with that. it's reasonable, if you're if going to do bottom up and look at the seasonals. i think that's important for real time in the market but the broader picture, the fed had huge success getting inflation down to where it is. i want it r -- it wants to get signs that we'll take another leg lower and that's not based on residuals and seasonals and so forth so i think the fed is in a good place. >> when you look at targets on the 10 year, which ones do you say that makes sense?

>> i'm looking at four, four and a half. i think it's hard to stay below four. whereas on the other side, at 4.5, then i think that you're in the value zone. so looking at those as the broad range and how i come to that is that i think that our star has gone up over time and i would look at nominal our star as three and a half to four percent, throw on a term premium it gets you to four, four and a half for the ten year. it's not complicated. >> when do you see the first cut coming? >> after mr. powell gets confidence. >> is it september? is it later in the year? are we still potentially pushing it out until 2025? >> i think it could go out to '25, but i think the fed would like to backoff as soon as they get enough data they can do it in a credible sort of way. so it's not going to be before september unambiguously it won't

be before september unless we get something unexpected or it could be december. so i think we're still live this year and i think the marketplace is priced that, after reversing the big discounting they had earlier in the year. but really it is data dependent and forecasting the confidence of 19 people sitting around an f.o.m.c. table. >> on the growth side, any reason to fret about retail sales or credit card spending softing a bit? >> not sure there's reason to threat because we were stronger than horse radish in march. but we'll pay attention to it because we're picking up, you know, in the economy the fact that the affluent are doing incredibly well, whereas the lower half of the income distribution is being pinched. so i think it's appropriate to look at it and not dismiss what happened in the most recent month. but also in the context of what happened in march.

>> are you a fan of the theory that easier policy would help housing supply and then help inflation? sort of the goldsby school? >> i can argue that one both sides. it's like the issue with lower interest rates be good or bad for housing? i don't know. all of my students who are around 30 at georgetown we talk about it all the time. >> i'm sure. >> it's the whole issue is if rates come down is the price of a house going to go up so much that i am not benefitting from that by the time i get out of here, get my mba and save up the down payment. so it's really for that generation, it is really, really daunting for affordability. >> the dream of home ownership? >> the dream of home ownership is still very much alive and well. the fact of implementing on that dream is what's daunting.

>> right. even if we have an adjustment in rates downward as seems likely over the next 12 to 24 months we're not going back to zero. >> we're not going back to zero and housing prices are not going to come down. we had the huge leap during the pandemic so you're up here and you're not coming back down and lower rates as you're discussing could push that up. so that generation is thinking is this always going to be one week in front of me? am i ever going to catch it? i think that's a real issue in our society of the -- of my generation of the baby boomers versus the millennials. i think that's a big issue. >> you mentioned the boomers. there's been a lot of good work done in this pig in a python lump of money they have and continue to grow in markets. >> yeah. >> and home equity and everything. and that will support prices for the next five to ten years, right? >> i -- i think that's broadly

right. i think edward has done great work on that and i think that's broadly right. and our kids' generation actually have a legitimate beef with us. if i can't ever get into the house i need bank of dad and mom to step up a bit. >> speaking about beeves we had denny on with usyesterday, you guys have created an enormous amount of debt and deficits. haven't you heard weigh in in terms of interest costs which we're talking about a lot. a concern to you? >> i analyze it and look at it, i'm not as wrapped around the axle about it as a lot of people. >> why? >> because to the extent that the deficit is a function of increased public investment, not just transfer payments but increased public investment, then it increases supply side potential in the economy. and therefore, makes the debt more manageable.

so the -- why you have the debt really matters for me or why you have the deficit. if you have public investment, it's less troublesome because it increases supply, potential it seems to me. >> great to have you on set, paul. please come back soon. >> good being here. let's get to sara eisen in jerusalem on the back of that important interview this morning. hey, sara? >> high, carl and david. good to see you from jerusalem wrapped up a conversation with prime minister benjamin netanyahu at what is a critical point in this war. he shared some new information about the invasion in rafah with israeli troops on the ground there. about the time line for this war and about the relationship between the u.s. and israel right now. have a listen. >> mr. prime minister thank you for taking the time. >> thank you for coming. >> there are reports now that the israeli army is advancing into rafah. can you tell us the state of

play and what the plan is at this hour? >> what we're doing is what we have to do to win this war. we have to destroy hamas' fighting formations. they have four terrorist battalions left in gaza. we can't leave them there, they're reconcur the gaza strip, set up the military power again and the promise theyvowed to commit these savage murders again and again and again. again, the beheading of women, raping of women, kidnapping of children, burning of babies. they promised to do it over and over again, so we can't let them get away with it. the way to avoid it is to destroy those remaining terrorist bah tattalions. so we're doing it, doing it carefully. right now half a million people have vacated rafah, they got out of the fighting zone because we asked them to leave.

>> where do they go? >> outside of rafah, away from the fighting zones. hamas is doing everything in their power to keep them in harm's way, including shooting them if they try to leave. we do everything to get them out of harm's way. text messages, phone calls, leaflets and they move. it's important. >> do we expect a full-scale invasion and what does that look like? >> i think what you're seeing is a responsible step by step action we're taking. the most important thing is to enable the civilian population to leave. that's been our modus operandi from the beginning. that's why if you look at the ratio of civilians to combatants killed in the war, it's perhaps the lowest in had modern urban warfare, contrary to the reports heard. the u.n. reaa -- readjusted how

many civilians were killed. every life loss is a strategy. but we've achievedmuch lower numbers and right now we're doing this with very low civilian deaths. >> and there's the perception you can do more to protect civilians in gaza. >> no army has done more. the one who says that is john spencer, head of urban warfare at west point saying no army in history has gone to the lengths israel is going to to prevent civilian deaths, losing the element of you surprise, enabling the enemy to organize but we do it because we do care about civilian casualties. and we have a situation no army

has faced. 35,000 terrorists. and we're able to do it because we're committed to it and will continue to do it. >> there's a report today that the u.s. administration is pushing to release $1 billion of weapons aid to israel. can you confirm that and do you have a sense of when that will happen? >> i hope it happens soon. i appreciate the help we receive from the united states from the beginning of the war. president biden came here, sent the battle carrier groups and we have weapons. yes, we have a disagreement on rafah. but we have to do what we have to do. and, you know, sometimes you have to -- you just have to do what is required to ensure your survival and your future. we cannot continue into the future by having hamas retake gaza. it's not -- not only would be a tremendous victory for hamas it would be a tremendous victory for the iran terror axis because

iran is trying to envelope us with a noose of death and that victory is a victory against iran, for the modern arab states. who are not openly but understand their future is involved also with our victory against hamas. so we are doing what we have to do and i hope we can see eye-to-eye with the united states. we're talking to them but ultimately we do what we have to do to protect the life of our nation and present such savageries if from being repeated again and again. >> is the u.s. withholding the heavy bombs, 5000 pound bombs? >> so far it has. i think that's in the public. i hope we can overcome that. i said on holocaust remembrance day, which was just a few days ago, i said i appreciate the american help but i can't allow hamas to threaten us with this mass murder. indeed, if they could, they would have done exactly what happened to us 80 years ago in

the holocaust. we were completely defenseless and murdered 6 million of our people, a third of the jewish people in the world. hamas if they could get away with it, they would do the same thing. the reason they can't get away with it is we pushed them back. would the united states leave an enemy at the border? not thousands of miles away, but a few hundred yards away from its border after it committed the equivalent of twenty 9/11 massacres on one day. 10,000 held hostage by these criminals. it wouldn't happen. you know the united states wouldn't do it and we wouldn't do it either. so we have to do what we have to do. i paraphrase, a nation's got to do what a nation's got to do. >> can you win the fight without american support? >> the answer is yes. although we value american support, we want american

support, i'll do everything i can to get america support, but not at the expense of our survival and our security. when we have to, we stand alone and against the savages we have to win, we don't have a choice. but you know, our first prime minister declared the independence of the state of israel against american opposition. secretary of state marshall, at the time, opposed the independence of israel. and actually, american imposed an arms embargo on israel at the time. but the prime minister did what he had to do. in 1981, the prime minister destroyed saddam hussein's automatic bomb factory in iraq because that bomb was aimed to destroy israel. and ronald reagan, the president at the time slapped an arm's embargo on us, withheld f-16s for three months but we did what

we had to do. over time people see you do what you have to do. sometimes you have disagreements but recognize those decisions were the right decisions. and i think they'll recognize over time the decisions we're making now are the right decisions. >> how is your relationship with president biden these days? >> i've known him for more than these days. known him for over 40 years. it's been a friendship that's often laced with disagreements. president biden said it openly and i say it openly, it hasn't blocked the friendship. in the end i'm the prime minister of israel. i have to take care of the one and only jewish state and hope to do it as far as we can with agreements but sometimes we have to doen when there is disagreements, we have to do what we have to do to ensure the survival of the state of israel. >> did it factor into your dec decision or calculus at all, the u.s. threat to withhold weapons? >> it did, but it wasn't a

decision i made lightly. you know, i respect the united states, the american president, whoever is in power, certainly joe biden, that's not an issue. but the responsibility is to do what you have to do to secure the future. to secure our basic security. so i do what we have to do and, you know, i hope that we can iron it out. in fact, all the disagreements we had over the years including now in the gaza war, this is not the first disagreement but hopefully we'll overcome it. >> there have been higher grades on the dispersement of humanitarian aid what took so long to get the aid in? >> for one thing hamas is looting it. and still is looting it every day. we get the aid in through gaza through multiple crossings we opened, land routes we opened, air drops we facilitated.

and now through a maritime route i initiated. so our policy from the start, the beginning of the war, our policy was you have to provide the basic humanitarian aid required by international law but in the last six weeks we changed it to not just basic humanitarian aid but flooding gaza with humanitarian aid and we're doing that and right now the difficulty we have -- two actually one is hamas is looting. and the second is that one of these crossings, the rafah crossings we want to see it open and we want egypt to release, to make sure that maximum humanitarian aid flows through this crossing and other crossings as well and hope we can come to an understanding with egypt. >> when for rafah? >> yesterday if we could. we're not holding up the opening of rafah. i hope egypt considers what i'm saying now because i think it's good for -- nobody should hold

the palestinian population hostage in any way. and i'm not holding them hostage, i don't think anyone should. >> as far as the war -- >> we're fighting not the palestinian population, even though many supported the massacre. we're fighting the terrorist embedded in those populations that hamas is using as human shields. >> you mentioned four battalions left. we're seeing the return of hamas in the northern cities you had already concurred. the hostages have not been returned. so is it really going well? >> half of the hostages have been returned. and many didn't believe we'd get that. and we'll get the other half i'm committed to getting all of them back. it's heartbreaking to see what's happening to them in the terror dungeons and their families. so hamas is cynical, evil. we are fighting sheer evil. i think a term that president biden used, it hasn't changed,

they were sheer evil they are sheer evil. but how do you do that, how do you fight them, defeat them? the first thing to understand is they're not just a terrorist organization they have a terrorist army with battabattal. if you don't destroy the battalions a leader can order people to do this attack, that attack. so you have to smash the battalions. after you do, you have to come back and mop up, which is what we're doing in other parts of gaza. it's not other until you smash the battalions. how long does that take? it takes a few weeks to go into rafah, we are. a careful way to allow the evacuation of the population. but the intense part of the fighting the smashing of the bahh battalions is weeks away. and then you have a mopping up of the remnants. >> so a matter of weeks until

this is other? >> the rafah operation if continued as plans is a matter of weeks not months and years. >> then what afrater rafah? >> you need three things you need organized fighting, then the mop up, then sustained demilitarization because they're trying to regroup -- >> that's happening, right? >> that's happening now but we haven't -- still the chieftons are still there. we got rid of four -- no, we got rid of two of the four commanders of hamas. another two to go. we'll get them. we won't rest until we get them. so you have to get the chiefs, you have to get the battalions, then you have to mop up. all of that we're acting now to do. once that is over, you have effectively the end of the war, certainly the end of the intense part of the war. what you need to reconstruct

gaza, have a different future so gaza doesn't pose a threat to israel anymore, you need to have three things. one sustained demilitarization, that i think can only be done by israel intervening when it can when it sees another terrorist resurgence. the second thing you need is a civilian administration that is not hamas and not beholden to the destruction of israel. i think that can be done with the assistance of arab countries and the international community and you need reconstruction, that can be done with the help of important players in the international community but you have to clear gaza of hamas. you can't have a future for the palestinians in gaza or future for israel or broader middle east peace if hamas emerges vict victorious. if it's undefeated it emerges victorious. that's a defeat for all of us. what do hamas, what do they

want? they chant death to israel, death to america. what does iran want that sponsors hamas, death to israel, death to america. there are supporters on the campuses chanting the same things, death to america, death to israel. unbelievable. i know that doesn't reflect the majority of the american people. when asked who do you support, israel or hamas? 80% say they support israel. 20% still a huge number say they support hamas. the same 20% who sabin y that b laden was right. they don't hate america because of israel it's the other way around. they hate the idea of democracy, liberal societies. they view us all as colonial implants. we're here in this country, sitting in this city which king david declared as our capital

3,000 years ago. so i think everything is spun in the other way but we're finding for the truth and fighting for our future and we'll continue to do that. >> there are questions about what happens after and what israel wants to see. whether israel wants to occupy gaza and who you really want to see operate in that power vacuum. what should it look like? >> it'll be a power vacuum. first of all it shouldn't be a power vacuum that hamas is controlling, that's not a power vacuum. those who tell us stop the war now, leave hamas in place, those four battalions in rafah are saying to regroup, recapture gaza and threaten you again. that's not going to happen. i'd like to see a non-hamas civilian administration with an israeli overall military responsibility that's the only thing that would work. but there's one precondition. you know, the day after hamas is the day after hamas.

the day after hamas is destroyed, you can't have it both ways. you can't leave hamas there and talk about the day after because you won't have a day after. you'll have a repetition of the same horrors. >> can you talk about a two-state solution after you remove hamas. >> the two-state solution that people talk about would be the greatest reward for the terrorists that you can imagine. 80% of palestinians in gaza and in the west bank support the savagery. giving them a state would do two things. one it would be a tremendous reward, historic precedent of giving those people who committed the worst massacre against the jewish people since the holocaust on a single day, giving them a prize. and second a state immediately taken over by hamas and iran and it wouldn't be -- it wouldn't advance the purposes of peace. it would just be a launching

ground for a future war against israel. i think that's not in the works and most israelis by now, a huge number, would say don't do that. i would argue if we defeat hamas we should strive for something that i long believed we could do in the middle east, that is hve the palestinians have all the powers they need to govern themselves and none of the powers that could threaten israeli's survival. that mens the military responsibility in the palestinian areas adjacent to israel would be left to israel. otherwise iran comes back in. we left lebanon, iran came in with hezbollah. if we were to do it, the same thing would happen. that's not good for the palestinians, israel, peace, bad for the world, not good for america. i think the formula i say, the palestinians should have all the powers to govern themselves but

none of the powers to threaten us. by necessity that means that certain sovereign powers, the most important being the responsibility for overall security is maintained with israel. that's the solution. >> is the u.s. withholding intelligence about hamas leaders' whereabouts? >> i don't think so. >> there was a report that they were in an effort to keep you from invading rafah. >> i don't think that's true. anyway, the main intelligence on palestinians and believe me in a much broader radius in the middle east is -- we have by our own and oskf course we apprecia the intelligence cooperation. america often helps us. you should know that israel always helps america with a lot of intelligence that saves americans lives in many, many parts of the world. especially here in the middle east. israel is a valued ally of the united states. i don't think america has a better ally than israel. it doesn't mean we don't have

disagreements. do you have disagreements in your family? >> of course. >> we have disagreements in our family, too. >> you mentioned iran and it raises the question of the never ending war, and that is how do you stop all of this without stopping iran, which is fundsing hamas and hezbollah and others? >> i think you're right. i think ultimately we have to. we have to confront iran and prevent it not only from closing the loop of death they're trying to put around us beginning with hamas, hezbollah, the houthis, they 'trying to envelope us and choke us but we're fighting back, beginning with hamas and gaza. this is not just our battle. it's also your battle. if they could knockout israel they got the middle east. if they got the middle east they're going right after you. they say it. they chant death to israel, death to america.

they want to develop, this is the worst part not only concur the middle east, which we're preventing them from doing but also gopping intercontinental ballistic missiles. i don't think you want that. so rolling back iran's aggression, preventing it from getting nuclear weapons is not just israel's interest it's america's interest. all arab states understand like us they're in danger too. but they're in danger for a regime change, they throw them out and put their puppets in there. but in our case, they want to destroy the jews, they want another 7 million jews dead. >> where does that leave hezbollah, 80,000 israelis are evacuated or displaced from the

north, how likely we see a war on the northern front? >> we're committed to having them returned they left because of the hezbollah's gun fire on the border. we're committed to have them back. we get them back either without a military action or with a military action. >> by september? >> i don't want to say -- i don't want to announce dates but think hezbollah understands we're not going to allow this tonight. >> there is a diplomatic path there? >> depends on hezbollah. they have to understand the alternative is very bad for them. i don't think they want to -- i think many were surprised by the strong response that we gave to the iran access -- terror access in gaza and i think iran will surprise by the failure of their weapons to penetrate israel. they were sure they would penetrate. we were grateful for the american international assistance but this the main

thing was israel technology, things i can't talk about that prevented this. but it is also purported that we were able to surprise them in other things. so i think no one should underestimate the resolve of israel to defend itself or the ability to do so, least of all, hezbollah. >> what about your own resolve? there's a perception that you are prolonging the war for your own political power. >> yeah, well, i'm not concerned about my future. i'm concerned with israel's future. i read the other day in an esteemed american paper saying netanyahu wants the war to continue because if it doesn't and he's taken out of office -- >> a lot of people feel that way. go to jail. >> his trial would resume. my trial has been ongoing since i resumed office. prime ministers don't have any immunity from prosecution. happily the case is unraveling

and a few months ago the judge called the prosecutors in and said you should drop your chief charge, the bribery charge. so i'm not worried about the trial. i'm worried about israel's trials and tribulations and i'm going to do what i have to do to finish the war. as far as i'm concerned we could finish it as quickly as possible but we have to do so by finishing the war, winning the war, that means destroying the battalions. >> do you have the support of your own people? we are seeing protests by the thousands demanding a deal where they release the hostages no matter what? >> hamas, you know, anybody says get a deal at any price means basically capitulate to hamas. what does hamas say? hamas says you can have the hostages, maybe by the way, but you have to stop the war, end the war, get out of gaza, leave hamas in place to reconquer the gaza strip which they would

commit these atrocities again and again. we can't agree to that. that's what people have to understand. i will not relent trying the in every way possible to get the hostages back and when we defeat hamas we'll get them back. i think we'll get some of them back before. >> do you feel like you have the mandate from the israeli population? >> people don't lie. you can go in the streets and see the vast support that is there. you won't know it because everybody is fixated on the protests, which are financed, organized and so on. but they don't reflect the majority of the people any more than the american campuses, these protesters, the mobs, do they reflect the majority of the american people? >> no. >> no. same thing here. the majority of the people here support a victory, they want to see a victory, they want to see hamas removed because they understand their future is online. >> at least i hope not on the

protests on the clench campuses. growing anti-semitism, even beyond the campuses, i wonder what you think the security threat is to american jews is right now? >> it's serious. i'm talking to my american friends who are jewish saying i've never seen america like this. and my non-jewish friends are saying the same thing. but i think it engenders an opposite reaction. i was so moved the other day when i saw the protesters, if you want to call them that, burning american flags and i think a university in north carolina they took down the american flag hoisted on the flagpole the palestinian flag and american students, other students came in, they took down the palestinian flag, rehoisted the american flag and stood around the flagpole to protect the american flag. i was so deeply moved because

these people understand it's our common battle. >> what about the economy? it's definitelytaken a hit as a result of the war. how do you plan to turn that around without being able to give a specific time line about when it ends? >> on the contrary i think the hit we've taken is small because we have a robust economy. i led the free market revolution here 20 years ago making israel a power house in the world. people are investing now. when we win the war, we also win the peace and the economy. i'm having people come in here who say we want to make israel the hub and an a.i. leader or one of the three leaders in the world. it is. we're number four. we're number one per capita investments in a.i. number one. but in a country of 10 million we're number four in absolute

terms and investments in adventure funds and investment in a.i. in israel. but we can go further. israel has a robust innovation economy. >> the future is based on the technological progress and a.i. we're committed to doing this. i'm telling your listeners right now, your audience, the time to come into israel is now. we're going to rebound huge once this war is won and you should be there not at the ground floor but don't wait to get to the top. >> the way that agencies are cutting worried about the deficits in the middle of terrorist spending. >> i was finance minister in the early 2000s, no one wants to invest here, we had terror and all that, and people didn't believe that. i said look we're going to do a revolution here. israel is going to be transformed into one of the most robust free market systems

technological companies in in the world. i said invest now, i don't think they believed me because they didn't. but those who did made a huge fortune ere. many billionaires in israel. i'm saying it to your audience -- >> it's also gotten controversial. >> i'm telling you, israel will be one of the most advanced technological societies among the three and perhaps among the two leading a.i. economies in the world. that is worth a lot of money. be part of it. >> mr. prime minister you have been the most -- among the most vilified leaders in the last few months in the world. threats of prosecution from international courts. how are you dealing with all of this? >> i'm dealing with it because i'm not here for myself. i'm on a mission and that's to protect the future of the jewish people, who can only have a future if there there's a jewish state. we're in peril but we have the resolve and the spirit to fight

back and win. i visited yesterday wounded veterans, those who lost limit lims and it's unbelievable what they say, they say we're waiting to be fixed with an artificial leg because i'm going back to fight with my friends, colleagues because we have to win. that spirit is so powerful, it's so powerful that i don't think -- i know nothing can stop it. what i'm tilling you is that when i think about the vilify indication, slander, lies, and absurdities levelled at me, i don't think they're levelled at me, they're levelled at the country. i'm not an outlier. i don't represent my policies or the policies of the extreme fringes in my government or that spin. i represent the broad majority of the jewish people in israel and many non-jews. those who understand our future is on the line we have to win. if i have to take the slappeders

and vilify indications so be it. it's not the first time. >> your father lectured until age 100. how long do you plan to be prime minister? >> not until the age of 100, please. i don't plan to be here -- it's not my plan. it's what the people of israel want. and so far, they vested their trust in me because i reflect what they believe is the essence of our being. we have to make sure -- we have to ensure that what happened in the holocaust doesn't happen again. the piece that we've begun to form and that i led in the accords that it's broadened. it will only be broadened with saudi arabia and others if we win. if we lose, nobody will be interested in us. victory is essential for survival, security and also peace and prosperity. you make alliances with those who win. you don't make alliances with the lose rs and that's why amon

other things we will win. >> are you in touch with donald trump? >> not recently. but i think he sent me a letter of congratulations when i was -- i think when i was elected. >> so not since october 7th? >> no. but i always appreciated the support he gave. it was very, very important. supported us on recognizing jerusalem as our capitol hill, moving the embassy here, recognizing our sovereignty in the go let heights and i apprec that. just like i appreciate the support we got from president biden. i think ultimately the american people and the presidents of the united states they look at the situation here in the middle east and they say, who stands with america? who stands for the same values that america stood for? and the answer is, israel. >> mr. prime minister thank you so much for the time today. >> thank you. >> really appreciate it. >> one more second, please.

number of takeaways there as far as what the prime minister said. first of all, carl and david, the way he framed the rafah operation, which is coming despite the resistance and opposition from the u.s. and europe this morning with the eu's foreign minister telling israel to get out immediately. he says we have to do what we have to do framing it in the context of the larger fight that israel is waging against hamas which he said promised to do october 7th time and time again. he said the rafah operation will take weeks and next steps he frames it as mopping up some of the terrorists that returned to the northern cities like we are seeing happening and they are doing. and then talks about eventually a vision for gaza beyond that. but guys, i thought that was an important point. also marrying israel's fight

with the u.s. and the fight for the west. i thought he came back to that a number of times and wanted to hammer that point and that was that israel and the u.s. are very close allies, need each other despite what he says is a disagreement and what he confirmed is the u.s. withholding some of the heavy bombs as israel proceeded to enter rafah. >> and he pointed out, of course, disagreements from the past right back to the founding of israel. not to mention president reagan's opposition to the bombing of the nuclear reactor in iraq. obviously he's an effective communicator, insnetanyahu, and that came to the forward in your fascinating interview. i do wonder the plan after, whenever the after is, continues to be a real q question. you asked about it, i don't know if you were satisfied with the answer because it did yooesn't r there's a great deal of detail available from the prime minister about what things look like, other than what seems to

be a continued military presence of some kind of israel on the gaza strip. >> i think he was pretty forceful on two points. one this whole two state solution we hear about from leaders in the west like president biden he frames as an reward for terrorists who backed terrorism and events like october 7th. he also said that whatever the future is, he has to be a demilitarized gaza. he did not, david, rule out the possibility of other arab nations coming in to support. i know there's great hope that, for instance, saudi arabia might play a role in any

>> reporter: so i listened to the interview as you were recording it and several things struck me as well. in terms of rafah, it's quite clear that israel plans to go ahead with the rafah operation, despite opposition from president biden, personal appeals from president biden. he talked about how half a million palestinians have already left rafah. there are about 1.5 million palestinians currently in rafah

force. it sounds more like this will be gradually turning up the temperature, not very gradually, over the course of the next several weeks but to give palestinians more opportunity to leave, to go to other parts of . but this will still be a devastating military campaign. th warned of a catastrophe that will happen if israel does go ahead with this operation. because we are still talking about 1.5 million people who are effectively cutoff from humanitarian aid, very little humanitarian aid does get in to them. they've already been suffering because of seven months of war, suffering long before that because of hamas' occupation. so the next several weeks for the people of rafah could be devastating as that number of 500,000 goes to 1.5 million and the people go from that city to

other nearby areas that he described as outside the combat zone. so i think that is certainly something to watch and listening to your interview with him time and time again he said we're doing this, doing this alone, i don't care what president biden says. we have enough weapons to do it. in terms of the long-term plan you were discussing that. he did outline a kind of long-term plan for gaza. but it is an extraordinarily long-term plan. and one that envisions keeping israeli forces either in gaza or near gaza or moving in and out of gaza for years, potentially decades to come, because he described an indefinite military control by israel over gaza and over the palestinian people. he said he sees his view for the future of gaza as one sustained demilitarization.

what does that mean, sustained demi demilit demilitarization? it means that israel destroys the last four battalions and continues carrying out military strikes as it sees necessary to make sure that the militants in gaza don't rearm, don't regroup, don't reform. so sustained demilitarization means keeping a military presence in gaza or next to gaza but that is actively going after targets inside gaza. >> and i think -- >> two he talked about a civilian administration that is not hamas. that means something has to be created and he said that something that's created will not have any military authority which means israel has to maintain the military authority. so he's talking about a very, very long term occupation -- at least military occupation, military control over the people of gaza. so this is not a short-term

plan. >> yeah. but i think left the door open for maybe some sort of other arab nations to be involved. i was curious richard since you've been here for a while now what you made of his comments on the politics. you heard the narrative in the u.s. that the criticisms the wa growing opposition here at home from the crowds and the protesters, who want him to just make a deal to bring the hostages home. >> yeah, so, in terms of other arab nations stepping in, i have not heard a chorus of other arab nations who want that responsibility, who want to go in and become the occupation force in gaza with israel maintaining security control. so that's -- in theory at this stage, just an idea. there may be the discussions that i'm unaware of, but my contacts across the region have not suggested that there is an imminent arab force ready to

take that roll. in terms of his political standing, his political support, he dismissed the protesters, he described them as an organized group, that they don't represent the people. that's debatable. before this war began, before october 7th, there were hundreds of thousands of people on the streets who were opposed to netanyahu, who were opposed to his governing coalition. those protests went away after october 7th. this country was shocked. it was appalled, they wanted to unite behind the military, behind the intelligence services, behind netanyahu and his war cabinet, because they wanted action taken against hamas. but now as this war has dragged on, we're starting to see the protesters come back on to the streets. so his suggestion that he has universal support is certainly debatable. what is not debatable is that people in this country do

support a war against hamas. they do want to see hamas destroyed. they do not want to see hamas returned to power. but does that necessarily equate to keeping prime minister netanyahu in power? he is associating the two. it is not clear that everyone in israel is doing the psalm. >> richard, really valuable to have your perspective, as you've been covering this war from the beginning. richard engel, chief foreign correspondent for nbc news here in jerusalem. and guys, there was actually some bonus sound from prime minister netanyahu where we did talk about the hostages and the likelihood of a deal. you'll be able to hear it at 8:00 p.m. tonight. we'll run a special report, which will include the entire interview from prime minister benjamin netanyahu. be sure to tune in, 8:00 p.m., only on cnbc. back to you guys. >> fantastic stuff, sara. sara eisen for us today in jerusalem. meantime, the market has definitely drained a lot of

instability. dow is up 190, all-time high, s&p, and nasdaq. >> the good thing about new highs, the new highs tend to beget more new highs. and the most important thing is the brett of the market that we are seeing. let me show you where we are in terms of what the markets are right now. we are sniffing out a number of things, the market is sniffing out. number one, yields have been trending down. that's the most important thing that's happening. number two, earnings revisions have been going up in the month of april. normally they come down for the second quarter and the rest of the year, they're going up. valuations, depends on who you talk to. 19 times forward earnings are pretty reasonable when the economy is holding up pretty okay. volatility has been on the low side. we hit the lowest levels on the vix for the year on friday. that's a good sign as well. most important thing for me is that breadth. i watch advance decline lines. how many stocks are going up

versus down every day. when you have market cap versus waiting stuff, it distorts the index. look what's going on in may. the market advance has broad pd dramatically. the s&p 500, the advanced decline line for the s&p 500 is near a new high. the mid-cap is at a new high. this is like number of stocks advantages versus declining. new highs. and the small cap where everybody has said is suffering this year is the highest level since december. it's a new high. that's a powerful broad market advance. take a look at what the major indices are doing. just look -- the moves are supportive of this. when's the last time the russell 2 2000 led the end seese. and the s&p small cap is a high-quality russell 2000. it's up 6%. the midcap is up 6%. look at this, there's the s&p, our magnificent 500 that's dragged up by tech stocks, it's lagging so far this month. that is a powerful advance that

you are seeing right now. the next thing you're going to see, everybody is going to start increasing their price targets. guess what happened today. brian belski over at bmo, our old friend, he pulls it up, he was at 5,600. he was at 5,100. you'll see this happening a lot now now that we're hitting new highs. a couple of people were at 5 5,200. stoltz from oppenheimer was at 5,200. they'll start moving as well on this. so we'll talk about that a little bit later. finally, just on gamestop, people keep asking me about gamestop. gamestop has now entered the trading halt hall of fame. i keep an informal record on this, so here it is, folks. n 9 on monday, 16 on tuesday -- it took a long time to get that figured out -- and 6, this is officially in the trading hall of fame. people are asking me, who's doing the trading. most of the trades are going

through citadel, virtu and merrill lynch. they have a lot of understanding with a lot of the companies. that doesn't necessarily you an awful lot. here's my take on this. there are no broad macro implications about what's going on here at all. none. other than this would not be happening in a bear market, trust me. none of this meme stock stuff would be happening in a bear market. you would need a bull market to have this kind of activity. this is what i -- i call this a side pocket of the market overall. you need the bull market, and there's no directional tell about gamestop or what it means for the overall stock market, other than the fact that we've got a very broad bull market and some people can obviously take some advantage of that. so let's just leave it at that. i'll try to get you a few of the other trading halt hall of fame companies. i used to actually keep track of this. >> did you? >> well, back when limit up, limit down became a big thing, this was 10, 15 years ago, there were a number of ones that were like this on daily basis. but you don't get this kind of

volatility anymore. i sort of stopped keeping track of the whole thing. >> have we figured it out. it's a $10 billion market value. had been the size of over 18, gamestop. have we figured out who's behind it all? do we think it's retail? real quick? we're running out of time. >> bottom line, there are three firms doing most of the trading, citadel, virtu, merrill lynch. but remember, you can hide institutional trading very easily. >> as you pointed out yesterday as well, bob, thank you. >> thank you. >> bob pisani keeping an eye on this market as we will continue vege the next hour of our cora. don't go anywhere. n stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real.

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i sold a pillow! good wednesday morning. welcome to "money movers." i'm carl quintanilla with leslie picker live on the floor of the new york stock exchange. s&p and nasdaq at all-time highs. meantime, our sara eisen is in jerusalem in just a moment, following her exclusive with israeli prime minister, benjamin netanyahu. >> plus, what we learned from google io last night and its implications across tech. >> later on, randy kroszner on the cpi number. >> right now, you just heard