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CNBC's Jim Cramer said that he's becoming more cautious on stocks after several pillars of his bullish outlook have come under pressure. View More

watch nowVIDEO1:3101:31Things have changed in the market for the worse, says Jim CramerMad Money with Jim Cramer CNBC's Jim Cramer said Monday that a series of mounting risks has made him significantly more cautious on stocks."I am not that bullish," the "Mad Money" host said. "My bullishness can wait. I think you will get a better time to buy than right now."The caution comes as several pillars of Cramer's bullish outlook have come under pressure. A surprisingly strong jobs report has reduced the likelihood of Federal Reserve rate cuts, while the looming SpaceX IPO, weakness in Apple, and the prospect of additional AI-related fundraising have raised new questions about whether the market can sustain its recent rally."Things have changed. For the worse," Cramer said. "There's a shroud over this market and you ignore it at your own peril."At the top of Cramer's list is Friday's surprisingly strong employment report, which he said undermines the case for rate cuts this year.Cramer said expectations for one or two rate cuts had been a key pillar of his bullish thesis. Now, he believes the report was strong enough that "you could argue we might need a rate hike to cool the economy, not a rate cut to turn the temperature up."He also expressed concern about the upcoming SpaceX IPO. While demand for the offering appears robust, Cramer warned that an overly enthusiastic debut could ultimately backfire if the stock surges to unsustainable levels before falling sharply."What happens if it opens too high simply because there's not enough stock to go around, and then we watch a sickening decline after that moment?" he said. "That could be very bad. It would color things very negatively maybe for some time."Apple is another source of worry. Cramer said he hoped the company's Worldwide Developers Conference would serve as a catalyst for the stock, but shares instead moved lower."Apple is a leader, maybe the leader, and I don't want to lose the leader of this stock market," he said.Finally, Cramer pointed to Alphabet's recent $80 billion equity raise to fund additional artificial intelligence infrastructure. While he praised the offering's execution, he worries it could encourage other technology companies to tap investors for capital, potentially draining liquidity from the broader market.Taken together, Cramer said the prospect of higher rates, uncertainty surrounding the SpaceX deal, Apple's struggles, and the risk of additional equity offerings create a far more difficult backdrop for stocks."So, rate cuts from the Fed are likely off the table, the SpaceX deal will suck money from the rest of the market, more equity offerings could do the same thing, and now Apple's getting clocked, too. That's more negativity than I can handle," he said. watch nowVIDEO12:0112:01The boost in oil prices was the straw that broke the underclass's back, says Jim CramerMad Money with Jim Cramer Jim Cramer's Guide to InvestingClick here to read Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest smarter Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.DisclaimerQuestions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Instead of selling AI tools to companies, venture firms are buying legacy companies outright and rebuilding them around AI from the inside. View More

watch nowVIDEO7:2007:20The AI rollup: Silicon Valley’s new buyout playbook is hitting Wall StreetTech Venture capital is buying its way into the artificial intelligence transformation that enterprise software hasn't delivered. Instead of selling AI tools to companies, venture firms are buying legacy companies outright and rebuilding them around AI from the inside. The bet puts VCs on offense and leaves traditional private equity, which spent the last cycle buying enterprise software at peak prices, on defense.In Silicon Valley, the strategy is known as the AI rollup. Over the past six months it's crossed into public markets twice: General Catalyst and Trian's $7.6 billion take-private of Janus Henderson (JHG) in December, and Long Lake Management's $6.3 billion agreement in May to take American Express Global Business Travel (GBTG) private at a 65% premium.General Catalyst managing director Madhu Namburi calls it "service as software." It's a take on software-as-a-service, or SaaS, which made software companies highly profitable because growth didn't require growing costs. AI rollups apply the same logic to services businesses.Venture firms have been running the playbook since 2023, mostly inside the private market. General Catalyst — which backs Long Lake alongside Alpha Wave – has co-created roughly a dozen of these rollup vehicles. Joshua Kushner's Thrive Capital runs Thrive Holdings with the same model and more than $1 billion in capital. It's put that money to work, recently backing an AI rollup of regional accounting firms. Lightspeed and Andreessen Horowitz are in the mix too, though it's early for them. The targets share a common feature. They're in industries where software adoption has lagged: healthcare, accounting, insurance, customer service, property management, construction. That also changes who can do these deals. Traditional private equity is built around financial engineering — taking a fixed cash flow, leveraging it, squeezing margins. The AI rollup is built around growth — AI scales customer-facing teams, reinvested cash funds more acquisitions. It's a twist on the venture model, essentially applying the growth mindset to established companies. Long Lake plans to hold the companies permanently, the strategy employed by Berkshire Hathaway.Long Lake is the clearest example of what the bridge to effective AI deployment looks like. Three years old, the company has acquired more than 30 businesses across HOA management, construction, and now corporate travel. It runs a proprietary AI platform called Nexus, tuned for the specific workflows of each industry that frontier labs aren't initially targeting. Alex Taubman, Long Lake's CEO, says Nexus performs five times better than general purpose models like Claude or ChatGPT on his firm's internal evaluations. Beyond the technology, the bet is that owning the company and embedding engineers inside it for years makes the change durable. Most of Long Lake's engineers came from Ramp and Palantir, where engineers work on site with customers for months at a time.Traditional private equity made the opposite bet. It spent the early 2020s buying enterprise software at peak multiples on the thesis that recurring SaaS revenue was the most defensible cash flow in business. Deals included Vista's purchase of Citrix, Thoma Bravo's acquisition of Anaplan and Coupa, and Silver Lake buying Qualtrics. Three years later, those companies are the ones most exposed to AI disruption. The recently announced partnerships between Anthropic and Blackstone, Hellman & Friedman, and Goldman Sachs — and a parallel venture with OpenAI backed by TPG — are the response. They're bringing frontier models into the portfolios already on the books. But it looks more like a consultant's attempt at the deployment problem. Someone else's AI, deployed into someone else's company, by people who don't own either.Two things could go wrong for the VC model. The first is returns. Operating companies historically produce returns of 100% to 200% over a long hold, not the 10x math venture funds often promise. Pension funds and endowments that wrote checks for venture exposure may end up with something closer to private equity. The second is execution. Vista and Thoma Bravo spent decades building operating teams to run the companies they took private. Venture firms write checks into startups. Taubman's defense: "Three years in AI is actually like three decades of pre-AI." The next take-private cycle is already starting, and it isn't in software. It's in the boring non-tech companies underneath it.Correction: A prior version of this story misidentified the firm backing OpenAI's initiative Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The co-founder of the now defunct FTX crypto exchange is currently serving a 25-year federal prison sentence. View More

Combination showing Former FTX CEO, Sam Bankman-Fried (L) and President Donald J. Trump.Reuters | Getty Images Sam Bankman-Fried has formally submitted a request for a presidential pardon to President Donald Trump, according to information listed on the U.S. Department of Justice Office of the Pardon Attorney website.The co-founder of the now defunct FTX crypto exchange is currently serving a 25-year federal prison sentence after he was found guilty of orchestrating a massive fraud scheme that misused billions of dollars in customer funds at FTX and its affiliated trading firm, Alameda Research. The exact date of the filing isn't clear but DOJ records indicate the request for "pardon after completion of sentence" was submitted in 2026 and is pending.Trump said in a January interview with The New York Times that he has "no intention of pardoning" several high-profile people including Bankman-Fried.Trump has issued more than 1,400 pardons and commutations so far in his second term, according to the Department of Justice, including more than 1,200 Jan. 6-related cases. During his first term, he granted 238 pardons and commutations in total.The White House declined to comment for this story. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Airline CEOs complained that manufacturers aren't making enough of their engines and that they're falling short on reliability. View More

In this articleGEBARTXFollow your favorite stocksCREATE FREE ACCOUNT Technicians work on an engine at GE Aerospace's engine shop in Lafayette, Indiana.Leslie Josephs/CNBC RIO DE JANEIRO — Airplane engine makers have fallen short of what they promised airlines, major carriers' CEOs say, a problem vexing an industry that has struggled for years with aircraft shortages and more recently, a doubling of fuel prices.It's a paradox: Engine makers dazzled carriers with more fuel-efficient options for new planes from Boeing and Airbus. But production shortfalls and disappointing reliability with those engines are becoming costly problems, CEOs said in interviews at the industry's largest annual gathering here. Airline executives said they're being forced to remove engines and take them for maintenance into crowded shops earlier than expected, which is driving up costs and sucking up the fuel savings they were supposed to get from the engines. Airline leaders told CNBC this week that travel demand is still strong despite higher fares, so having aircraft on the ground means money left on the table, just as a $100 billion higher fuel bill this year is slashing airline profit prospects.Alexis von Hoensbroech, CEO of Canada's WestJet, told CNBC in an interview ahead of the more than 370-airline International Air Transport Association's annual assembly that the new engines promising fuel savings of around 15% or more compared with earlier models were "engineering marvels." "However, as you push the limits, it sometimes comes at the cost of reliability, and what we all are seeing is that those engines have to go into unscheduled maintenance far more frequently than prior engine generations," he said.Newer models of aircraft engines burn hotter, allowing them to use less fuel. That's key since fuel is airlines' biggest cost after labor. But that can also mean they wear out faster, which can ground planes, though carriers keep some spare engines. Von Hoensbroech and other airline executives told CNBC that the new the engines have not reached the reliability that airlines need, through there have been improvements. "That's a big struggle, because it adds a lot of costs," he said. "So a lot of the fuel savings are in fact eaten up by unplanned maintenance costs." 'Lack of engines' Manufacturers have invested heavily in expanding engine overhaul and other maintenance capabilities, while third-party shops have also seen a windfall. New engines are costly, but aircraft production is still behind schedule, and that's keeping older engine values up, too. For example, a CFM56 engine made by GE Aerospace and its French partner Safran that powers older Boeing 737s was going for $9.2 million at the start of the year, up 17% since 2019, according to IBA Group. A Pratt & Whitney PW1127 for newer Airbus narrow-body planes was up more than 57% over that time, according to the aviation intelligence and advisory company.Engine overhaul and maintenance has become a more than $58 billion business. watch nowVIDEO11:3111:31Why airlines like American are scrambling to make engines last longerAirlines Willie Walsh, the outgoing director general of IATA, told the conference in Rio de Janeiro that he is "deeply disappointed customers have not dented manufacturer finances," and pointed to a jump in engine supplier profits."My message to the engine [original equipment manufacturers] is simple: Stop gouging us and get back to making great engines that work and that last," he said. "Allowing these failures to extend into the next decade is totally unacceptable to the customers."For its part, GE Aerospace, which makes engines for both Airbus narrow-body A320 planes and Boeing narrow-body and wide-body aircraft, said it has been working on improvements and has also increased output."We've made significant investments to enhance time-on-wing, reduce cost of ownership, and increase output and we will continue to invest to drive meaningful improvements," the company said in a statement. "While there is more to do, we are making progress every day to continue to deliver long-term value for our customers."GE powers Boeing's bestselling 737 Max with its CFM joint venture with France's Safran. Those Leap engines are also options on the Airbus A320 narrow-body planes, with Pratt & Whitney as the other. GE engines also are used on a majority of 787 Dreamliners.United Airlines CEO Scott Kirby praised GE for making improvements, but said there are still concerns for the industry. "The biggest constraint for at least the next five years is going to be lack of engines," Kirby said. A Rolls Royce jet engine on display at the Rolls-Royce aircraft jet engine production and repair facility in Blankenfelde on February 28, 2023 near Berlin, Germany.Omer Messinger | Getty Images News | Getty Images He pointed to a shortfall of parts like forgings and castings and said when it comes to smoothing out supply, "I don't really think we've started yet."Pratt and some of its customers have the added problem of a manufacturing defect from several years ago. The issue forced airlines to ground planes with those engines, which was one of the biggest challenges that hit now-defunct Spirit Airlines. Pratt's parent, RTX, didn't immediately comment.Rolls-Royce, another manufacturer, said it is still working on efficiency. The company said it has invested £1 billion ($1.33 billion) in its Trent engine fleet and a mode that "offers up to triple time on wing, resulting in improved fleet planning and a reduced maintenance burden for customers." Read more CNBC airline news'Bring 'em on': Delta wants United's crown over the Pacific, tooSpirit's collapse, high fuel prices test limits of summer vacation spendingMeet the pilots flying Spirit Airlines' yellow jets to the desert Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

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While the central bank's monthly survey showed the inflation outlook mostly unchanged, the general perception of conditions deteriorated. View More

watch nowVIDEO2:1802:18Household financial worries at highest level since 2022: New York FedSquawk on the Street U.S. households grew more worried over their financial situation, with the share of those seeing things as much worse than they were 12 months ago hitting a nearly four-year high, according to a Federal Reserve Bank of New York survey.While the central bank's monthly Survey of Consumer Expectations, released Monday, showed the inflation outlook mostly unchanged, the general perception of conditions deteriorated.The share of those seeing their current situation as "much worse" than a year ago leaped to 13.3%, up about 2.7 percentage points from April and the highest since July 2022. The total of those seeing either a much or somewhat worse situation from a year ago stood at 43.7%, which the New York Fed said was the highest since January 2023. At the same time, the outlook for the coming year wasn't any better.Those expecting their situations to be either much or somewhat worse totaled 36%, while those seeing things improving totaled just 22.9%. The net between those seeing better versus worse conditions hit its lowest since October 2022, the New York Fed said in the release.Inflationary impactThe survey comes with consumers fearful over the inflationary impact from the Iran war, which has sent energy prices soaring. Some Fed policymakers recently have expressed worry that if the conflict persists it could raise inflation expectations among consumers and businesses, making the problem longer term than the typical temporary impact from supply shocks.However, the survey showed consumer worries about prices virtually unchanged.Inflation expectations at the one-year horizon declined just 0.1 percentage point, to 3.5%. The outlook at the three- and five-year time frames held flat at 3.1% and 3%, respectively. Expectations for gasoline prices actually dropped 0.1 percentage point to 5%, while the outlook for food rose 0.6 percentage point to 5.8% and rent increased 1.4 percentage points to 7.4%. Also, the expectation for household spending growth over the next year fell to 5%, down 0.4 percentage point from April.Consumers will get their next inflation reading Wednesday when the Bureau of Labor Statistics releases the consumer price index for May. Economists surveyed by Dow Jones expect that headline inflation rose to 4.2% and core inflation, which excludes food and energy, increased to 2.9%. The Fed targets inflation at 2%.The Federal Open Market Committee makes its next interest rate decision on June 17. Markets are pricing in almost no chance the committee will lower benchmark interest rates, with expectations rising that the central bank instead will hike by a quarter percentage point by the end of the year.Correction: Inflation expectations at the one-year horizon declined just 0.1 percentage point, to 3.5%. An earlier version misstated the move. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Retirees often focus on the risk of spending too much in retirement. But spending too little poses another kind of danger. View More

Lordhenrivoton | E+ | Getty Images When people think of how much to save for retirement — and, subsequently, how to spend that money wisely in older age — many worry about the risk of running out of money early. They fear the possibility of overspending. But there's another less-appreciated danger, too, according to financial experts: The risk of underspending one's nest egg. "Overspending is risky. But underspending is risky too," said Zach Teutsch, a member of CNBC's Financial Advisor Council and founder of Values Added Financial in Washington.Data shows that it happens to many retirees. About a third of retirees still have 100% or more of their initial savings remaining by their mid-80s, according to a recent study by the Employee Benefit Research Institute, a nonpartisan research group."When you see so many people into their 80s still at 100%, you see people who are being way too conservative [with their spending]," said Craig Copeland, the director of wealth benefits research at EBRI. Read more CNBC personal finance coverageRoth IRA owners may need a second retirement account to claim the Saver's MatchMillions of people lose food stamp access as 'big beautiful bill' cuts take effectTrump Accounts create a 'legal backdoor' for Roth IRA wealth, tax attorney saysRetirees fear running out of money. Many are spending too little insteadCNBC's Financial Advisor 100: Best financial advisors, top firms ranked Of course, the opposite is true, too: "You also see some people with less than 20% [of their assets remaining] who are in the other situation: 'If I live five more years, I won't be able to do anything,'" Copeland said. About a fifth of people who entered retirement with more than $500,000 had less than 20% of their assets remaining by their mid-80s, according to EBRI's research. "This will be the foremost challenge in retirement: figuring out how to maximize retirement but still have a buffer at the end," Copeland said. The risk of underspending Vgajic | E+ | Getty Images The risk of overspending is straightforward: Running out of savings in older age may make it difficult to afford basic necessities, let alone enjoy one's later years — even more so if guaranteed income sources like Social Security aren't robust. The risk of underspending may be less obvious. But according to financial advisors, it ultimately amounts to something similar: not living as fulfilling a life as one could have. "It represents a life not lived, the vacations you didn't take because you were afraid you were going to run out of money," said Marianela Collado, a certified financial planner and certified public accountant based in Plantation, Florida. She is also a member of CNBC's Financial Advisor Council. watch nowVIDEO1:5801:58This money move can be a silent wealth killer—what to do insteadSave and Invest It's a difficult psychological leap for many people to go from a savings mindset, in which one's net worth is consistently growing, to one of drawing down that nest egg and seeing one's net worth decline, according to financial experts. "Some people spent all their life saving money, and it's very hard to switch then to spending their assets down," Copeland said. "It's not a comfortable feeling."Many people who are retired today have also lived through "an era of very good capital markets," in which there have been many years of double-digit annual stock returns after the 2008 financial crisis, Copeland said. That dynamic has made it easier to preserve or even build wealth throughout retirement, he said. Teutsch said he likes to use an analogy with clients to illustrate the risk of underspending: Imagine you're sailing a ship through a channel. Rocks on one side of the channel represent running out of money. On the other are rocks that represent the risk of missing out on experiences. "Eventually, if you sail too far the other way, you end up ditching your boat on the shoals of regret," Teutsch said."I hope people don't look back and say, 'I have more than I need, and it means I didn't need to work nights and weekends, I could have spent more time with my kids and family, or could have given more [money] away,'" he said. It represents a life not lived, the vacations you didn't take because you were afraid you were going to run out of money.Marianela Colladocertified financial planner and certified public accountant based in Plantation, Florida Retirees shouldn't be afraid to enjoy the money they worked hard to save for years — within reason, of course, financial advisors said. That's especially the case earlier in retirement, when retirees are more likely to be mobile and active relative to their later years, they said. Ultimately, after death, the money will be spent on the retiree's behalf — perhaps inherited or donated to charity — but they won't get the chance to enjoy it, the advisors said."As long as the financial plan indicates it's a good idea, I encourage clients to give money to their favorite causes, to kids, to live well when they're alive and can enjoy it," Teutsch said. "If you help somebody buy a house [for example], you get a lot of enjoyment out of that." Why figuring out retirement spending is difficult Assessing how to best spend one's nest egg from year to year is difficult because there are many unknowable factors that have a large bearing on success, advisors said. For example, one's life span is impossible to predict, as are future returns on financial assets. Retirees also must increasingly rely on 401(k)-type plans in which they're forced to manage their savings rates and investments and determine how to translate that lump sum into future income. Earlier generations were more likely to have a pension, which outsourced much of that complexity to employers. How much can you spend in retirement? Momo Productions | Digitalvision | Getty Images There are some guiding principles for do-it-yourselfers, though, according to financial planners. The 4% rule is "a really good starting point," for example, Collado said. This rule of thumb gives an approximation of how much money retirees can withdraw from their savings each year in order to give themselves good odds of not running out of money 30 years later. Retirees would withdraw 4% of their portfolio in the first year, then give themselves a "raise" in the second year based on the inflation rate. Same in the third year, and so on. These funds would stack on top of other sources of income, such as Social Security. For example, an investor would withdraw $40,000 from a $1 million portfolio in the first year of retirement, which is 4% of the total. If the cost of living rises 2% that year, the next year's withdrawal would rise to $40,800 — or, 2% more. Another 2% cost of living increase in the third year would translate to a $41,616 withdrawal. And so on.One caveat: Retirees should ensure they're withdrawing at least enough to cover any required minimum distributions from their retirement accounts, advisors said. Buena Vista Images | Photodisc | Getty Images However, the 4% rule isn't perfect and, since it uses conservative assumptions, may contribute to underspending, advisors said. Retirees can also consider a "dynamic spending" approach, in which spending isn't static like the 4% rule would suggest but is flexible according to market conditions, Teutsch said. In a year of positive stock returns, for example, retirees could take out more money — perhaps a 7% withdrawal — and reduce that sum in down years, maybe to 2.5%, for example, he said. Retiree spending tends to be more U-shaped than static, whereby retirees generally spend more early in retirement when they're more active, throttle back when they inevitably slow down a bit and then spend more in older age when they may have a greater need for costly long-term care, for example, he said. watch nowVIDEO4:4104:41AI trajectory and the impact on retirement savings: Here's what to knowSquawk Box A dynamic approach also helps to reduce something called "sequence of returns risk," whereby retirees increase the risk of running out of money in retirement by withdrawing from their stocks when the stock market is declining. This risk is heightened earlier in one's retirement, advisors said. Retirees might also consider a "dynamic earning" strategy in such years, Teutsch said. For example, people who are able to take on some side work might supplement their portfolio income by working a few hours a week on a consulting project or something similar, he said. 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The primary election was held on 2 June, and roughly 80% of ballots have been counted. California's lengthy vote-counting process, particularly for mail-in ballots, allowed Raman to erase an early eight-point deficit and move ahead of Pratt by more than 3,000 votes. View More

It is a consumer-first initiative that will help reduce confusion and strengthen trust across the edible oil value chain, says SEA President Sanjeev Asthana View More

The project is a massive urban renewal initiative aimed at transforming the slum colony in central Mumbai into a modern, integrated township View More