Stephanie Link, Hightower Advisors chief investment strategist, joins 'Squawk Box' to preview Nvidia's quarterly earnings results, latest market trends, other stocks she's keep an eye on, and more.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Stephanie Link, chief investment strategist at Hightower Advisors, anticipates a challenging quarter for Nvidia due to supply constraints and ongoing China restrictions. She notes that while Nvidia's stock has rebounded significantly from previous lows, the upcoming results are unlikely to serve as a major catalyst, with guidance potentially lowered due to issues such as the H2O chip and slower production.

Link also discussed other retail stocks, highlighting Costco's strong recurring revenue model and Gap's recent turnaround under new leadership. She mentioned her strategy of reducing cash holdings and dollar-cost averaging into the market, focusing on long-term opportunities despite recent market volatility.

Expect messy quarter from Nvidia, says Hightower's Stephanie Link

The one stock everyone's watching this week, NVIDIA. Joining us right now to talk more about it is Stephanie Link. She's Hightower chief investment strategist and CNBC contributor. We do get NVIDIA's earnings tomorrow. It's already Tuesday. So Wednesday, we'll be getting those numbers. Stephanie, what are you thinking of the stock ahead of that? Yeah, I mean, it's very, it's very big representation in the S&P 500, 6%. So people care. It's very owned, very well owned. I just don't think this is going to be a catalyst quarter though, Becky. It's noisy. You've got the China restrictions. July quarter guidance probably has to come down because of the H2O issue. It's about 10% hit probably, but I think that's in the stock. We're also hearing about slower rack production and also power consumption issues. So I think it's going to be a messy quarter. I think it's well-known. The stock has recovered though, 36% from the April lows. So it'll be interesting to see how it trades. But most importantly, this is not a demand problem. It's a supply problem. And they're going to do about $5 in earnings power, I think, this year. Let's talk about another stock. I think you own Costco. Is that right? Because they've got earnings coming out this week too. What are you thinking? I wish I owned it. I don't. I own the other retailer that's reporting. I own Gap, and I'm looking forward to that one. But Costco, it's a behemoth. It shouldn't be a surprise in terms of what they report because they do give monthly same-store sales guidance. The numbers for same-store sales came in at 6.7%. Traffic grew worldwide 4.2%. It's going to be a good quarter. It usually sells off on the news. And if it sells off a lot, I would love to buy it. What's a lot? I mean, it's up 10% this year. I know. Well, I would have to come down. It's trading at 50 times earnings. So it's expensive. But the reason it's trading that expensively is because about 80% to 85% of their revenues are recurring revenues, right? They're membership fees. So if it were to pull back, I would love to get it down 5%, 10%. We're not going to get it down that. But it's a great company for the long term. OK. What about Gap? You do own. I do own Gap. And it's up 22% year-to-date. And that's all because of the CEO who's turning this company around. You remember that Richard Dixon worked at Mattel. He turned around Barbie when he was there. He's turning around the Gap. Last quarter, they had a great quarter in three out of the four departments or divisions. They have Zach Pozen, who's the creative director. He's really changing the creativity of their products. And they're seeing traffic. And they've actually gained market share for the last seven quarters. So trading at 12 times forward yields about 2.3%. If it pulls back only because it's up a lot, I would be adding to that one too. Do you make purchases just based on the overall macro environment, just watching stocks up this morning, down last week on some of these Trump announcements that come through? And Steph, we've only got about 10 seconds. Yeah, I went from 9% cash to 2% cash over the last couple of months. I'm just trying to dollar-cost average on the weekdays.

After two unverified videos of Israeli hostages were released, Hamas said the hunger crisis in the region puts them at risk. The militant group said it would deliver food from the Red Cross to the hostages under a couple of conditions, including permanent humanitarian corridors.

Jerusalem

Middle East Conflict

Hamas says hunger crisis putting hostages at risk

U.S. President Donald Trump fired the U.S. commissioner of labour statistics after weak jobs numbers signaled tariffs weren’t yet leading to his promised economic boom.

Washington

Trump dismisses weak jobs numbers, fires labour statistics chief

Government scientists warn that the 2025 wildfire season in North America is projected to be the longest ever, with fires already causing significant damage across the western United States and Canada. Major blazes have led to evacuations, destruction of historic sites, and widespread air quality alerts.

Santa Barbara

Wildfire season in North America shaping as worst on record

A volcano in Russia's Far East has erupted after sitting dormant for 600 years. Scientists believe the eruption was triggered by the massive earthquake that struck the region last week.

Kamchatka Peninsula

Russian volcano erupts for first time in 600 years

An independent watchdog agency responsible for enforcing a law against partisan political activity by federal employees has opened an investigation into Jack Smith, the special counsel who brought two criminal cases against Donald Trump before his election to the White House last year.

Former Trump prosecutor Jack Smith faces probe by U.S. watchdog

New outbreaks of violence overnight into Sunday (August 3) rocked Syria straining a fragile ceasefire. Meanwhile residents in Sweida are calling access to more humanitarian aid.

As Suwayda

Humanitarian needs escalate in Sweida as truce frays

Parts of the European Commission's much-anticipated AI Act come into force this weekend. It's been hailed as the first piece of comprehensive legislation aimed at regulating AI globally, though critics say it doesn't go far enough.

Brussels

EU's landmark AI act enters new phase

A Ukrainian lawmaker and a pair of local officials, as well as an unspecified number of National Guard personnel, have been caught in a major graft scheme that involved using state funds to buy drones and other military hardware at deliberately inflated prices in return for bribes.

Kyiv

Ukraine Invasion

Ukraine uncovers major drone procurement graft scheme

Over the past few days, Hamas and its ally Islamic Jihad have released three videos showing two hostages seized during the October 7, 2023, attack on Israel that triggered the ongoing war in Gaza. The videos sparked reactions from Israelis who are stepping up calls for a truce.

Tel Aviv-Yafo

Israeli hostage families protest in Tel Aviv

Pope Leo XIV celebrated the concluding mass of one of the most important events of the Holy Year. A million faithful filled the Tor Vergata esplanade in Rome. Pope Leo sent a message of hope for the young people afflicted by wars and recalled the words of his predecessor.

Rome

Pope Leo urges Catholic youth to spread faith and enthusiasm

President Trump explained why he fired Bureau of Labor Statistics Commissioner Erika McEntarfer on Friday. Government data showed fewer jobs were added to the U.S. economy last month than expected.

Global Tariffs

Trump announces new tariff rates, fires employment commissioner

Former Special Counsel Jack Smith, who ran two federal prosecutions of President Trump, is under investigation for allegedly violating a law barring federal employees from using their position to influence elections.

Jack Smith investigated for using position to influence elections

Montana authorities released a new surveillance image showing who they have identified as the suspect in a bar shooting in Anaconda. Meanwhile, nearly 2,000 miles away, police in Tennessee are searching for a quadruple homicide suspect.

Anaconda

Suspect on the run after Montana bar shooting

Los Angeles officials are praising an appeals court ruling limiting immigration stops, but the decision may only escalate a battle over transparency and control. Elise Preston has the latest information.

Los Angeles

Appeals court keeps restrictions on California ICE raids

Disturbing new video shows a severely malnourished Israeli hostage being held in what appears to be an underground tunnel. This comes as witnesses and aid workers say Israeli troops opened fire on hungry civilians at two Gaza food distribution sites.

Sderot

Hamas propaganda shows malnourished Israeli hostage

Donald Trump has ordered the repositioning of two United States nuclear submarines to “appropriate regions” relative to Russia, blaming a heated exchange with Dmitry Medvedev, Moscow’s military leader and former president.

Moscow

Trump sends nuclear submarines towards Russia

A mass shooting in Anaconda triggers community shock and concern, as witnesses share their experiences and the investigation unfolds amid rising tensions.

Community in shock following deadly shooting in Anaconda

U.S. President Donald Trump said he's ordered his administration to fire the commissioner of the U.S. Bureau of Labor Statistics, on the same day new data was released showing weak job growth in July. The Labor Department also sharply revised job growth for May and June down.

Trump orders firing of U.S. Bureau of Labor Statistics commissioner

U.S. President Donald Trump says he ordered two nuclear submarines to be positioned in the "appropriate regions" as a response to comments made by Russia's former president. CBS News' Charlie D'Agata reports.

Trump says nuclear submarines moved in response to Russia

Jeffrey Epstein accomplice Ghislaine Maxwell has been transferred to a Bryan, Texas, prison, CBS News confirms. Maxwell was previously held in Tallahassee, Florida.

Bryan

Ghislaine Maxwell transferred to Texas prison

The announcement comes as international pressure mounts on Israel over the war in Gaza and the deepening humanitarian crisis in the Palestinian enclave.

Ljubljana

Slovenia becomes first EU country to ban arms trade with Israel

The United States imposed sanctions on Palestinian Authority officials just as other nations are stressing the importance of the PA in governing Gaza in the event of an end to the devastating war in the enclave.

New York

U.S. sanctions Palestinian Authority in growing diplomatic rift

Ukraine’s Parliament has reversed a controversial law signed last week by President Volodymyr Zelenskyy, which would have allowed the government greater control over anti-corruption agencies. The decision comes as the country faces one of its most significant political crises since Russia’s full-scale invasion in 2022.

Ukraine parliament reverses bill on anti-corruption agencies amid crisis

U.S. President Donald Trump has signed an executive order increasing tariffs on Canadian goods that don't meet the terms of the Canada-U.S.-Mexico Agreement to 35 per cent.

Ottawa

Trump raises Canada tariff to 35%, grants extension to Mexico

U.S. special envoy Steve Witkoff met Israeli Prime Minister Benjamin Netanyahu on July 31 in a bid to salvage Gaza truce talks and tackle a humanitarian crisis in the enclave, where a global hunger monitor has warned that famine is unfolding.

Trump's envoy meets Netanyahu for Gaza aid, ceasefire push

U.S. special envoy Steve Witkoff is visiting Israel as more countries join the call to recognize a Palestinian state in September. CBS News' Robert Berger has the latest.

Trump envoy in Israel as Canada joins call on Palestinian statehood

President Donald Trump says the U.S. will charge a 15% tariff on imports from South Korea as part of a deal that eases, for now, tension with a top-10 trading partner and key Asian ally.

Trump says U.S. will set 15% tariff on South Korean imports

U.S. President Donald Trump slapped a 50% tariff on most Brazilian goods to fight what he has called a "witch hunt" against former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies.

Rio de Janeiro

Trump hits Brazil with tariffs, sanctions but key sectors excluded

Widespread damage from tsunami waves after one of the strongest earthquakes ever recorded appears to have been largely avoided. Experts say this event should be used to gauge disaster preparedness for a more serious situation in the future.

See The Full Story

Rise of AI