on the markets the futures -- this is -- they've wore denned a little down almost 70 points. nasdaq is down 70. we'll be here tomorrow >> thanksgiving eve. it's thanksgiving eve eve right now. >> there's excitement brewing. there could be a long weekend in str for some of us. >> andrew and i are here on friday. >> both of you are >> make sure you join us tomorrow "squawk on the street" is next gd tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber the nasdaq 100 at a 22-month high, reports of a possible israel-hamas cease-fire and hostage release. of course, nvidia tonight. microsoft ceo hinting he's still

open to sam altman rejoining the company but says governance needs a change. nvidia results on deck shares hitting a record high, boosted by what else, depend from ai. we got a mixed retail picture. best buy is saying consumer demand is unevil and difficult to predict lowe's cuts sales outlook. meanwhile, abercrombie, dick's and burlington all beat quarterly expectations. let's begin with ousted ceo sam altman nadella saying they remain committed but adds the governing structure needs to change. this is nadella on partnering with open ai >> i care about just making sure we can continue to innovate. as i said, i feel very, very confident. quite frankly microsoft has all the capability to just do that on their own

we chose to explicitly partner with open ai and we want to continue to do so. that depends on the people i'm open to both options. >> jim, the plot kind of thickened between nadella's comments and benioff >> i think benioff is concerned about something that is just not talked about and it's driving me crazy. why doesn't anyone know what sam did? why was he fired what was the material fact that caused his termination i think if we knew that, the whole discussion might be very, very different i don't want to presume what he necessarily did, but when i look at the people on the board, they must have seen something or heard something that made it so that everything was in question with the guy it bothers me we're acting -- he's fine, whatever he said is fine he didn't.

he did something that you or i would do and we'd be gone. >> but we don't know, jim. it's not fair to assume because we simply don't know. >> the statement that they gave is so damning -- >> listen, i can only rely on the reporting of others here i don't have any great insight i wish i did >> no one is talking. >> seems it's a compilation of different things perhaps his pursuit of other businesses, for example, cheap chips where he was raising money from softbank and/or he was in the mid east. >> doesn't anything disqualify you? >> other efforts -- i don't know. >> is this charles strickland from the moon and six pence? >> all we do know is the decision by the board has backfired in a way we have rarely if ever seen, erasing more value than we can imagine at this point. i'm not saying this company is a zero, but it's certainly not $86 billion or $90 billion that it

hadpreviously. >> what happens if a great person does something that is dishonest, do you just say, you know what, he's so smart, we're just going to overlook it. >> no, but do we know that's the case >> i think the language is such -- it wasn't he was dismissed because he wanted to spend more time with his family. >> if it's that bad, why is the chief scientist back on his side. >> the very rich are different from you and me, david >> we don't know it's a great point we still don't know now that it's been a number of days >> the real question is whether we see something today that indicates mr. altman is back at open ai and back to business as usual or whether, in fact, he has joined microsoft and slr or this potential exodus of employees takes place, which basically everybody at the company signed that letter >> they all signed it.

you wake up and benioff who is universally -- i don't think sasha is crazy about him, but is loved. he says, okay, we'll make it all up, come to work for us. we've got a good ai system they'll say no, we'll stay at this totally dysfunctional company. it doesn't have any leadership, rather than nak a lot of money at salesforce. we're kind of like the cruz, the car. we're nowhere -- you just say, hey, marc, what have you got from me? he gives you a good deal and you move on. >> you think open ai is done >> kind of, yeah >> you think salesforce and microsoft will be willing to take on hundreds of pretty expensive engineers? >> yes i think it's a jailbreak you've got a recruitment list. you just call them -- >> they still have a good amount of property. most of it is basically in the

hands of microsoft or able to be used by microsoft. >> -- >> i've been trying to find that out. what is this thing work if the current situation is maintained, meaning a lot of these employees potentially leave. altman doesn't come back it's hard to know -- >> do they have contracts? >> they do they've got a product out there that's generating revenues rite now. >> i'm just saying marc benioff would not tamper with contracts. he wouldn't. >> you can also hire other engineers. their engineers are going to be sought after there's no doubt about and whether or not they sell at salesforce let's not forget another guy out there pursuing ai aggressively his name is elon musk. xai. >> wow, david. x marks the spot >> mr. musk, by the way, is the founder of open ai

let's not forget it was his original idea he didn't want to develop it with the concerns -- >> maybe he can pivot easily. >> elon is capable of doing a lot of things at the same time. >> i have hp tonight suspended. let's ask them why did they suspend? weren't they getting huge amount of business from letter x, like how disney told me they weren't getting any business >> i didn't mean to take this to a conversation about twitter. >> i don't care where you intended to take it, frankly that haircut of yours is ridiculous >> ridiculous? >> it's short and doesn't work for me it's good abut it doesn't work

for me. >> helen toner works for a georgetown think tank. i've not seen her yet on any forthcoming show that i know that including like survivor or the amazing race i do want to know exactly what helen toner thought. she's not a revenue producer she clearly must have felt that something was so horrible that they had to be willing to risk the company to get rid of it i think we only in fiction see these situations where somebody is so horrible that even if they're incredibly important, they get to stay. >> certainly the guessing, it is guessing, on friday night, why would you put out a release before the market closed, why you would blind side nadella himself. >> and have no plan, none. >> how about the fact that no one is saying to these people,

to tasha mccauley, you either tell us what you knew or we'll go after you in a class action suit. >> it's unique if you read it in a book, you would be like this author doesn't know what they're talking about. >> it wouldn't work. no board would do that you'd say no board would ever do that without a plan of some kind. >> i have read almost every stephen king book. nothing like that. stephen king would say it's just impossible he's much too factual. it's preposterous you'd have all these people, adam deangelo. the non-employees, what did they h hear what did they hear helen toner goes home and says, you know what? we just fired the most important guy. but you know what? we did it for nothing. the do-over.

how about a do-over? that's why i say the very rich are very different from you and i. the very rich do whatever the hell they want they're very rich, don't work for anybody. >> would you stop? >> these are the very rich helen toner? >> they work for these companies. they're not paupers. they don't play by the rules >> i think you're taking another step. >> i'm saying they don't play by the rules. they fire the guy, as carl just said, and we all say, okay, that's fine. where else have we ever allowed behavior -- we fire someone friday at 4:00 he put out a statement basically saying he's a lying son of a bitch. then you say, who cares? he's fine. nadella says my chance to get this guy wow. david, let's say you lied your darn fool head off -- let's take a big hard pass on that.

we've got to keep faber. >> i'm not happy about the black suit today that's the truth >> it's too tight. >> i like that you have suits that finally fit you. >> i just got this 160 count and feels like steel wool >> making you somewhat ma gub yous >> i debated wearing my green suit, i think people might say, you know what, if i didn't watch -- look at this, look at this, look at this is this the valdez scantling is this valdez >> no. >> had she gotten back on the plane, the whole result would be very different the eons tour. in brazil. like sampson

anyway, the brother looked good. >> that's a block of television guys well done. >> i still want to know what helen toner knew is it too much to ask? >> somebody get helen on the phone. >> the guy is a serial liar? how about a lawyer let's get a lawyer in here let's get paul weiss the suit. >> you don't like my haircut. >> this is the freebie suit. >> freebie now we get the truth. >> buy one get one -- you're going to like the way you look, i guarantee it. >> mo ginsburg special >> my first suit after the suit i bought at marshall's, i did go get one off the rack at mo's. >> speaking of suits, we'll get to the retail earnings we got today. a bunch of raising guidance.

we'll get nvidia tonight after the bell very busy earnings day we'll talk about the consumer and, of course, lihoday shopping, when we return in a moment

in order for small businesses to thrive, they need to be smart, efficient, savvy. making the most of every opportunity. that's why comcast business is introducing the small business bonus. for a limited time you can get up to a $1000 prepaid card with qualifying internet. yep, $1000. so switch to business internet from the company with the largest fastest reliable network and that powers more businesses than anyone else. learn how you can get $1000 back for your business today. comcast business. powering possibilities.

lowe's and best buy under pressure premarket, both reducing guidance, citing a pullback in consumer spending. dick's raised the profit outlook for the full year, jim that's probably going to be

considered the winner of the morning at least. >> i love the quarter from dick's one of the things that dick's is doing. first of all, it's putting out a deck telling you how they're doing. dick's got got a real game plan. it's got the super dick's stores that are great, a fantastic digital experience reminds me of williams and sonoma in that way it has machine learning for athletes it's not a joke. it's for real. they have a very robust plan of growth that is not going to be what i regard as fool hearty they have an app buried within it where you can watch a game and it tells you everything about it i have a daut who are was a recruited athlete. all i wanted to do was record it so i could see it. this is used for baseball, it could be used for every sport. they've got great technology that eve got fantastic same store. these look like the old days

these numbers look like what happens when you have tech going for you, ai going for you, same store sales, great back-to-school season. this was a tour de force quarter. >> not as good as the premarket gain for burrell. >> oh, my god, david, you will love this. burlington, they say the first couple weeks in november it got cold bingo. now. this is the old burlington coat factory. they're not coats anymore. they did tell you they were hurt by warmer mental healther. it's something macy's said no one seemed to pay attention i am sending my best humor -- it may mean nothing i think burlington was strictly a statement that it is going to be a good christmas. that's what we needed from burlington. >> we mentioned yesterday matt boss' report coldest season

revenue for five years up by 11 next year street is at 8. >> i thought that was terrific there's ross stores which was great, kind of like this. >> kohl's, and it was not. >> no, that's not discount tjx. tjx always issues this guidance. it's a buzzkill. >> can we come back to a large market cap company here? just kidding lowe's is worth mentioning here as well. what's wrong >> marv ellison's own admission, the ceo, it's more do-it-yourself do-it-yourself is not doing it himself or herself home depot -- >> i have tried occasionally and

given up that's the story of diy. >> it's not thumb tacks on a board. i think you have a reason to own this thing which i think that marv ellison has historically been able to pivot when things aren't right you have to wait for it to go down a little bit. by the way, walmart was the best one of all walmart was great. everyone looks back and says that's too great anf is walmart today anf is unbelievable but not enough it's where they came from, not where they're going to. >> we'll get to m&a and home depot on the diy space best buy is a big story. cramer's mad dash. take a look at the premarket we'll watch volume, of course, as we get closer to the thanksgingayvi d holiday right now futures right across the board. don't go anywhere. [van engine] [card reader chimes] (♪♪)

[garage door opening] (♪♪) [inaudible chatter] [card reader chimes] (♪♪) (♪♪)

experience the art of high pressure brewed coffee and espresso with the l'or barista system. enjoy richer, bolder flavors complete with velvet smooth crema. now brewing peet's coffee.

let's get to a mad dash. jim and i are going to share this one we'll talk about vmware. we've been following this closely. broadcom, would it get the approval it needed from the antitrust in china they have. they got it. the deal will close tomorrow so from here broadcom will own vmware closing what is, again, that enormous deal closed quite some time ago. the last approval was china. it was political they seemed to put the process on hold from what we can now gather they had the dinner last week and they got the approval. jim, there are some people asking, well, why is the stock down remember we talked a lot in the last couple weeks about all

these investors being locked into their election. you had to make an election weeks ago cash stock if you buy the stock now, all you get is the cash. the cash is 142. so there's hardly any stock trading because everybody is locked into their election except for those that didn't make it. that's the cash value. that's all that is that's why the stock is down it had been up a bit above the cash value because of the hope you might have an extension, they might reopen the election. >> i look at this. hock tan, broadcom sells at 23 times earnings this company grows -- vmware grows much faster. inconceivable to me two days later, with all the love for hock tan that everybody doesn't raise numbers or raise expectations, because you have a company that's growing kind of okay and has a lot of ai, by the way. then you layer this company on

which is a great way to go to the cloud. cloud ai you have a one-stop solution to be able to get your company in don't forget nvidia does report tonight. you can sell it down you see the people are selling it down, david what they are doing is they're just saying this stock went up 100 points in advance of this. i don't think there's anything wrong with broadcom at all i think hock tan will lay out a vision that will be fantastic. >> the deal closes tomorrow. this is the last time you'll see a quote on vmware is today opening bell about six minutes away you can always catch us any time and anywhere by listening to and follinth"sawonheowg e quk t street" opening bell podcast

some facts. i'm a mom from virginia.

i work with immigrants in israel as well as palestinians, and five members of my family were kidnaped by hamas on october 7th. two were brutally murdered and three are still being held. all i want, all anyone would want, is to hug them and hold them again. we demand medical care. we demand the release of the hostages from hamas terrorists. these are innocent women and children. return them to us, to their families. demand their release. fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out of my torso! one for you, one for you. oh, you're a messy one. cool, right? so cool. anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. hot dogs! fresh, warm hot dogs! before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

laser focused like only jim cramer can do. buying that company, laser focus in on one more, and this is the part that i believe. i believe you can't influence the markets, they're too big, but you can influence people people make decisions to buy stocks

this is where it all comes full circle jim, tell us all -- not going to guess -- which one you picked utterly at random. >> there's no way you would know. >> say that one. >> i'll say it out loud. >> what was that company >> nike. >> think about every moment that took place it's not about timing the market, time in the market buy and hold, just do it do you remember me saying those three words? in the history of one company, one person has added more to the bottom line than anybody else. i would say michael jordan do you remember michael jordan's jersey number, 23, came out of retirement and switched to 45. jim, i don't think that might be enough for you >> not possible. >> it's all about visuals, jim i brought a little something here bigger is better in my industry.

i decided we're going to go home, we're going to go home -- >> no! there's no way >> pearlman last night on "mad money." >> he said i want you to find a list of 100 companies. i googled the top 100 companies. he said i want you to think of one of the 100 i thought of nike. and then he -- he wasn't even in the room he was not in the room when i picked nike. then he actually had -- at the end he did something amazing he told the executive pro us doer, i want you to think of someone. it was her child's pediatrician and he got that. very scary he's not of this world >> better than david blaine? >> no -- comparison is erroneous. i have seen blaine do some things that were really funny. >> incredible.

fun times on "mad" last night. let's get to the opening bell. uranium exploration company, next gen [ cheers and applause ] >> the more we look into the self-driving, we look at the automatic intelligence for driving, we're starting to get discouraged. i know that ford, for instance, has pretty much given up on self-driving what they've done is made it so you can drive across the country and not have to have your hands on the wheel david, i think we've seen the high watermark of the we can't have driverless. >> no. we're going to have driverless don't tell that to elon. >> where is waymo? >> cruz is absolutely a setback

for gm you were talking about it yesterday and today. there's no doubt this is just a speed bump on the way to autonomous. >> a speed bump that they can't make ethical choices about whether to kill someone -- >> i don't know it was about ethical choices. they just get stuck at the intersection because they can't make the left. >> the one they examined was actually not the fault -- actually none was the fault of the car. >> one was a hit-and-run by another -- would you rather have a human or machine >> that's why i like kyle. i think it's an unfair comparison versus humans humans make so many mistakes. >> we're going to hold the machines to zero mistake is that what it is until they get there -- i'm not making a judgment about whether we should or shouldn't i think we should. i think they're far safer. i think the optics, david, often does matter in terms of what can

happen it was a huge setback for gm they spent billions on this. i think this whole segment we put up is so challenged right now other than tesla putting out the model three which i think will matter. >> and he continues to talk about full self-driving coming around the corner. he's been talking about that for years, elon musk they do have an enormous amount of data at tesla. >> remember jensen huang, he reports tonight. he was running millions of simulations about how to handle black ice two times ago when i was out there. these dilemmas that would be dilemmas for people driving cars, black ice, are dilemmas for self--driving. it's held to such a standard where we're critical of it i once had an accident on black ice, hit a mailbox

>> speaking of cars, gm with an announcement is a moment ago they're going to have a business update next week following the ratification of these new labor agreements in the u.s. and canada jim, gas prices now down 15% normally we get a decline this time of year this will be the sixth largest decline for this period of the year since 2015. >> i just find this is an amazing time, that there was a terrific bank of america piece today. wef talk about mike wilson and we don't talk about savita this person has a piece today which has more charts and more thought involved in it about why we can get to 5,000. i know if you're not bank of america research you might not be able to get it. a lot of it is about sentiment admittedly a lot of it is just, look,

people are not where they have to be, not where they need to be positioned which is the broader market i found it to be so commonsensical that i say, you know what? i can see another run. >> see another run >> yeah. different stocks this time, because there's not enough short base anymore on the magnificent 7. >> instead of the stocks i want to talk about. >> our new show, the magnificent seven. >> the theme music has been written for 50 years. >> you call the show seven stocks and that's it you talk only about the seven. by the way, i did the market caps on them because i knew it might come up. 11.8 tril i don't know in market cap, apple, microsoft, alphabet, amazon, nvidia, tesla. >> like half of the u.s. economy basically. >> they're nation states their balance sheets are

unbelievable. >> they're unbelievable. by the way, guys, speaking of one of them, i think i mentioned last week that bezos was selling stocks he was not much again, this goes to size just to give you a sense he told 1.673 million shares of amazon last week. that netted him $244 million, but don't worry, because he does have another 8988 million shares behind that, that's worth about $144 billion i pointed out last week when i heard he was selling some stock, i think he may have changed his residence in florida for tax purposes, he sold, because of washington, certain tax policy that would have hit him there. now he can do it, and he happens. don't worry about jeff. >> a little defeiversificdivers. not a bad idea. >> by the way, he gave half to

mackenzie. still 144 billion. >> it's called a divorce can i explain how that works can i explain the concept of divorce? maybe you're not familiar. >> i'm not thankfully i'm no, sir she's given a lot of it away the most charitable human being in history. >> whenever you have a writers guild, she's there >> bezos hasn't given away much at all. >> some people have given away a lot more -- gates, we said he wouldn't. >> you're right. >> because of the closeness to thanksgiving and the good will, who plays the person antagonizing the magnificent seven? >> i don't know, jim i don't know. >> i want to know what stock is equal to eli wollack.

>> right he played -- it was kind of an odd thing because he played -- david, can i say eli woll lack was not from mexico? >> yes, i can believe that >> i need to know who is attacking the mall any sent seven. >> i don't know. lina kahn? maybe lina kahn is played by the late eli wollack in the movie. one of the greatest ever. >> great stage actor, too. >> fantastic stage actor. >> had a career that spanned so many decades. >> so you can't help me with who would play lina kahn >> i don't know, jim you haven't mentioned lina in at least a few shows. >> kind man, a good man.

dennis hopper, "apocalypse now." >> best buy, they talked about trade down in tvs, maybe not as much in other categories. >> look, and i know costco will say this, too. it's almost as if everybody in america bought a tv during covid and the last thing they need is another tv i think that's -- also washing machines whirlpool number -- >> was good? what i'm texting somebody it's what we do during the show. our viewers communicate with us, sglks was it about the game? >> no. >> whirlpool with a miserable quarter. stocks come back look, moderna and whirlpool, david, what do they have to do with each other? >> nothing. >> we used enough of them during

covid. we don't need them anymore let me throw in another that we used enough during covid zoom they i thought delivered a good quarter. stock was up five, ended up two, now three. down three >> what was the market cap >> 540 >> wasn't the stock apt 540? >> give me a full thing -- there it is. ooh, baby. >> the top was 560 not bad. look, the problem with anybody, whether it be pfizer, whether it be -- by the way -- >> $166 billion market cap. >> let's call it overvalued. docusign never came back the only one that's come back -- i keep wanting to give a jeopardy thing because i think the haircut may be a jeopardy

haircut. roku has managed a comeback. maybe because of the beautiful times square building. >> anthony wood. >> very mild mannered. a new fellow in there is really good president of production. everyone loves him i'll get it for you. >> please do. >> that's the truth. if you did great during covid, it doesn't matter. it's like you're tapped out. i think moderna did great, but didn't deliver with the anti-cancer vaccines you bought a washing machine, you don't need another washing machine. they don't break down anymore. >> mine sings to me when it's done there's nice chimes. you can program it for brahms. >> a period when we weren't going to the hospital for surgeries. medtronic was up -- >> i thought that was good to see. med tron nick has to diversify

the glp can hurt their business because your heart is stronger and they've got a big heart franchise. it's good to see medtronic doing better geoff martha took over they haven't been able to pick up share in that space good, he's going to be on. he's a good guy. edwards life science, i thought it was interesting, did people really put off open heart surgery? they put off open heart surgery? >> it's hard to put that off, i would think. >> they did. they elected to put it off. >> it's not elective. >> no, it's not elective you can't elect not to. >> sadly, a lot of people that had some of these diseases died because they didn't tend to them. >> medtronic does raise the guide, full year now 475 >> they have to do more -- i thought they would make some great brain initiatives.

i was the spokesperson for the american brain foundation. they need to do more they were planning to do more and have not done well. >> the banks continue to be quite weak we get into the last few weeks of the year. jpmorgan is up 13-plus percent everything else is struggling. wells is still in positive territory. >> wells had a good quarter. >> they're all down yet again. there it is. i haven't looked at the ten-year at this very second, but it's not where it was a few weeks ago. >> violating this bear trend line at 4.4. >> first horizon, a major top five canadian bank, 25 for horizon and then walks away. we don't know why because it's never been said. stock at 12 with a 4.9% yield, run by brian jordan who is fabulous how is it possible how can that stock be at the

>> katy huberty nice how commercial real estate -- the declines are progressing better than our expectations. >> someone called about sl green. wow, that stock has done well. great properties in midtown. >> really good ones and a lot of them that are nowhere. >> try to get an office in the boston properties building. >> they are part of the new developments that have done extremely well >> i continue to say, okay, where is the bad commercial real estate who owns it. a lot of it is owned by individuals who have made bets and not as many -- >> it's non-recourse for the individuals. they just give the buildings back >> that's true. >> they can avoid it >> one in philadelphia where a bank took it they're trying to get rid of it as fast as possible, but they're

takers 17-story building in ritenour square >> as deutsche said this morning, there are more central banks cutting than hiking. first time that's been true since january of '21. >> these are all things that, like the bank of america piece, there's a lot of good hopping. we're trying to deal with the fact that things are good after being bad for so long, we're almost conditioned that things can go back. broadcom was down today. you really want silly. vm wear has a -- broad come going to get a 30 pa, broadcom can do a buyback if they want to you have a stockwell over a thousand it's sitting there waiting for an analyst to say exactly what i just said who is paid ten times what i am. >> we've seen upgrades in the sector, upgrades of intel.

we've got adi this morning, jim, in line. guidance was soft, but autos were okay. >> this is an internet of things play if you wait four days, that stock will be up, too. the only internet of things that didn't come back is on semi which is a good company. auto is the kiss of death. you can't make your business auto those are the companies that are most secular -- >> you want to give me prediction on nvidia i don't want to put you on the spot. >> you think i'm -- 568. there's o's. 468 is me. i think nvidia is 100 points jensen is going to i think probably talk about -- maybe -- is dead again. they have a lot of business. he does not hype himself he looks at the revenues, tells you the revenues

if the revenues are $2 billion more than what people are looking for, that stock is going to go up >> microsoft and nvidia all-time highs. >> along with chipotle, hilton -- >> chipotle has raised price, raised price, haven't lost anything path car, that's trucks with old dominion read-through is fine. these are read-flew names where you really want to say maybe i should bai yun june pacific. there's so much to like here except for the fact that people, as is the bank of america piece saying, are so gloomy. why are they gloomy? maybe it's the war in the mid east, maybe it's that biden turned 81 and he pardons turkeys rather than having a birthday. maybe another candidate is facing a huge number of trials i don't know, david. people are down. >> as is a vooet vida said, they're optimistic not because the fed is going to cut, but

because of what the fed has already accomplished people want to turn the fed cuts into something nefarious. >> no. we beat inflation. no music, i want to finish this. this is really important herpes is really about very common-sense things. no euphoria -- thank you for turning the music off -- no euphoria, goldilocks, earns per share can accelerate it is an election year which tends to be good globalization, oil and baby boomers, $80 trillion coming to the market play the music i don't care. >> that's an old yardeni line, the boomer nest egg. >> boomer nest egg. >> and travis kelce. >> finally lost to his brother for the first time >> jason, by the way, a good christmas album coming up. >> you guys only lost to one

team. >> hurts has beat 13 straight teams, tieing peyton and testaverde. >> i met at training camp, i didn't know what to say. excuse me. can i help you i can't say anything he's the most impressive young man i have ever met. just impressive. he wants to lead you to greatness. >> proved it last night, man that was incredible. congrats. >> second half what a second half he comes back after a first half -- >> under duress for much of the game. >> it was a great game. check out bonds today. we'll get existing homes in a few minutes. and fed minutes this afternoon, get a little more clarity on the last meeting as david mentioned, ten-year 4.4 with the dow down almost 90.

watching crude today in the red. multiple reports say that we are looking at a potential maybe four or five-day pause in the fighting between israel and hamas, perhaps some hostage rel releases politico points out it would be the biggest diplomatic breakthrough we have an opec meeting and expect an extension of splupy cuts stop trading with jim is up next ard, you fixed it, you looked after it. maybe, it's time for your home to start taking care of you. - [narrator] if you're 62 or older and own your home, a reverse mortgage can put more money in your pocket by eliminating your monthly mortgage payments, paying off higher-interest credit cards, and covering medical costs. - you paid down the mortgage, invested in your home. i guess you could say your home owes you. - just eliminating the mortgage payment,

freed up a lot of cash for us. - the fact that we're still in this home means so much. - i get to go and do what i want when i want. - our customer's homes are taking care of them. maybe your home could do the same for you. - [narrator] call aag and get your free info kit. call the number on your screen. encore energy, america's clean energy company poised for production in south texas, energizing america with reliable and affordable nuclear energy fuel with an environmentally friendly extraction process. encore energy.

you want to be able to provide your child with the tools or resources they need. with reliable internet at home, through the internet essentials program, the world opened up. fellas, fellas. that's how my son was able to find the hidden genius project. we wanted to give y'all the necessary skills to compete with the future. kevin's now part of this next generation of young people who feel they can thrive. ♪ ♪

. let's get to jim and stop trading. >> david has some news. >> we might have a minute. >> key raises price target of crowdstrike. they report next week. palo alto came back. i think crowdcle strike will work and work big. david, the stock, my travel trust has a gigantic position in amazon so i'm really all over this. >> we talked earlier last week i mentioned i was hearing bezos was in the market and selling stock. it ended up being correct. besose sold 1.673 shares

he's aggressive today as well. again, this as traders may be selling as many another 10 million shares that's, again, spec, but he's in the market that would be a billion worth of stock. he sold $244 million that would be more than that if he sold 10 million shares, you can do the math, right he's selling a lot of stock. he has a lot of things going on. lot of stuff to fund by the way, again, to remind people, he still has 880 million, 988 million shares behind the shares he sold. >> volume is such that i really think that in many ways if you are selling it because you think he's selling it, it's foolhardy. it's doing well. >> it may have impact on the market today that's a big number for trying to get done in day. >> i wanted to bring it up my trust owns it i feel like it is going to get

hit. i am surprised that kohl's is down the ceo is saying there's potential positive comp stores in 2024. i think calls should be up, not down they have a terrific ceo there's a lot going on. >> what's up tonight >> well, i've got a company called snyder electric and then hp, a lot of people feel the next pcs will have refresh that has ai in it. let's find out i'll find out whether letter x really cut their sales. >> it's not letter x. >> what is it? >> letter x is u.s. steel, right? >> twitter you know whatever you want to call it. >> whenever i make a note, i have to make sure it's not u.s. steel. >> okay. you know, pretty soon they won't be bigger than u.s. steel. >> that may be coming very quickly. they're getting close, if u.s. steel gets sold soon at a nice price. >> we have go. this was fun why do we have to go i'm willing to work.

why do i have to go? >> we'll be here all day, jim. >> you think that hertz didn't want to play he's a gamer. >> got to go. >> all right. >> "mad money" 6:00 p.m. eastern time. >> come on, what's -- value added. value added. no, i have go i'm sorry. >>ee i can do -- kp talking run the ads. >> yeah. fine great. let me just go there. it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity.

good tuesday morning welcome to another hour of "squawk on the street. i'm sara eisen with carl quintanilla and david faber, live for you from post nine of the new york stock exchange. take a look at stocks this morning. it's a little bit under pressure nothing extreme. dow down about 78 points s&p down a third of 1% the trend has been higher as far as what's working inside the market materials and health care are two sectors that are green today. everybody else is red under pressure the most, groups like energy, consumer discretionary and technology that's why the nasdaq is selling off a little bit harder down .6% we are 30 minutes into the trading session. some movers we're watching slew of retail names surging or plunging on the back of the

latest earnings and outlooks there's a taste of some of the moves. dick's sporting goods up 11%, kohl's down 11%. medtronic delivering better than expected numbers and raising its full-year outlook expecting strong sales in the surgical and diabetes units and broadcom vm ware the deal set to close tomorrow. getting existing homes diana olick with that. hey. >> reporter: hey, carl existing homes sales in october dropped 4.1% month to month to a seasonally adjusted annualized rate of 3.79 million units sales down 14.6% the street was looking for a smaller drop to 3.9 million and this is the slowest sales pace since august of 2010 that, if you may recall, when the home buyer tax credit expired. these are closed sales which represents contracts signed in

september when mortgage rates took off going from around 7% on the 30-year fixed to over 8% in october falling back this month. supply edged up 1.8% from september, still down 5.7% from october of last year to 1.15 million units. at the sales pace, that's a 3.6 month supply a little more than half of what is considered a balanced market between buyer and seller tight supply keeping pressure on prices median sale price in october, 391,800, up 3.4%, that is an all-time high for october. realtors noted multiple offers are still occurring, especially on starter and mid-priced homes while price concessions are rising on the higher end of the market sara >>er with dynamic where we're seeing the decline steepen in sales and yet prices are at a record >> yeah. and that's because there is still very strong demand out there and such tight supply where you're not seeing the price gains so much is on the

higher end of the market where there's so much more available supply for sale. that's where you're seeing the price concessions. when there's really nothing for sale on the lower end and still that very strong demand, you're seeing multiple offers and bidding wars, if you can believe it >> it is hard to believe thank you very much. diana olick. digesting that existing home sales data. it's one where we have a lot of quotes to talk about from the retailers to figure out what's going on with the consumer because there's a lack of macro economic data, but not a lot of color and commentary here's burlington coat factory i like to pick out comments. they had a good quarter but on the outlook here's what ceo says although we believe over the next five years we can achieve average annual comp sales store growth, we're planning 2024 more cautiously than this a lot of economic, political and geopolitical uncertainties and difficult to predict what this uncertainty might mean for our business similar from lowe's, lowe's, of course, 75% is diy, do it

yourself projects, more exposed to the weakness. we've seen a cautious consumer for some time now, this quarter we saw some of the consumers increasingly prioritizing experiences over goods spending, on travel and entertainment. as a result, whenever the diy customer becomes cautious it disproportionately affects us. it's not complete doom and good morning. nobody is using the r word in terms of recession, but it's a cautious tone when it comes to the outlooks in particular for some of these retailers, most of them. >> yeah. i'm looking at the same things you are. we were talking about them earlier. to your point it's not the "r" word what is it slowing? >> not 4.9% gdp growth in the third quarter. it's an economy that has had 525 basis points of tightening, which results in higher mortgage rates and higher credit card rates and, you know, it constrains capital, and it hurts

ultimately the consumer, but at the same time we're not seeing mass layoffs or joblessness we would see in a recession 3.9% unemployment rate according to the market, it's a message that is consistent with a soft landing, a slowing economy, where inflation is less and less of a concern. it's why the market is up so much and by the way, i mean i did want to mention that bond auction yesterday, the 20-year went off with strong demand and that was key for the bond bullish tone we've established in the market where the 10-year has gone from 5 to 4.4, where we are right now and the dollar is at an 11-month low. >> interesting we mentioned earlier the chart out of deutsch today that more central banks are cutting rather than hiking. first time that's happened since january of 2021. it was interesting to see bailey of the boe in front of the m.p. saying markets underestimating perhaps the persistence of inflation. >> these central bankers said something yesterday. there's still more work to do.

core inflation is still 4%, double where the fed wants it to be but it's -- but overall inflation has gone down 23to the 3%, off the 9.1 peak last year it's a victory but doesn't mean it's necessarily done. they don't want the market to get all easy and 11-month low for the u.s. dollar boosts liquidity conditions and it could interfere with their fight on inflation if it makes things easier they have to now walk this fine communication line just in terms of how much the economy is slowing and consumer is doing, just in the last hour we heard from best buy, conference call going on, want to play sound from the ceo there. >> the sales pressure is due to many factors, including the pandemic pull forward of tech purchases, the shift back into services outside the home like travel and entertainment, and inflation. in the more recent macro environment, consumer demand has been even more uneven and

difficult to predict based on the sales trends in q3 and so far in november we believe it is prudent to lower our revenue outlook for q4 despite the lowered sales outlook, the mid point of our annual eps guidance is now slightly higher than the mid-point of our original guidance as we entered the year. >> and this just in from kohl's going to be aggressive in terms of promotions during the holiday season all adds fuel to the macro view from investors right now that the fed is done hiking rates and is closer to cutting rates there's a great chart from jones trading, dave lutz, in his note showing how the expectations have changed in the last few weeks as far as fed cuts there is now not a 0% chance that fed cuts in march and there's a 75% chance that they cut in may. >> meantime we've been on the lookout for headlines regarding the israel-hamas war good morning. >> good morning. nbc news is reporting now

according to a senior u.s. official and a source familiar with talks in the region that a tentative deal has been reached between the united states and hamas to release hostages held in the region. that deal could be announced as soon as today, carl. according to the reporting that we have here from nbc news, what the deal involves is about 50 women and children hostages being exchanged for about 150 israeli held palestinian prisoners in a first phase of the deal the numbers are all subject to change and this deal is being described as very tentative at this point. could fall apart at any moment for now the thinking this deal could be announced as soon as later today. according to the source familiar with the talks in the region, israel would choose which palestinian prisoners it would release pending a security check and the deal would include the suspension of overhead drone flights for up to six hours per day so that hamas could

consolidate the remaining hostages some hostages, of course, being held by other groups in the region a very complicated multi-part deal on the verge of being announced. we'll wait and see what more specifics we can get from the region and u.s. officials in washington. >> the president was sort of hinting at this in san francisco saying he was hopeful. are there any additional details about a potential cease-fire some reports say four or five days, maybe a pause in some of the drone surveillance operations >> yeah. like i said, one of the key pieces is a pause in drone operations so hamas could consolidate the hostages held in a variety of locations, pay parentally hamas would move those hostages in position to turn them over. there would be sort of a cease-fire or pause component to this how that works is still a little bit unclear. and whether this deal can actually come together still a little bit unclear now it's being described to us

as a tentative deal, possibly to be announced later today, carl. >> this is, eamon, you said 50 hostages, well and children, out of the 240 do we know how many are still alive? >> we don't have that information right now, and the question is, you know, how would those hostages be selected who would be in charge of selecting those? that's information i don't have right now. obviously, vitally important to the success of this operation and to the lives of those people. >> finally, eamon, interesting, xi xinhua out of china saying president xi weighed in saying all the parties should immediately cease-fire, cease hostilities, release detainees, avoid loss of life key in making sure iran doesn't complicate the situation. >> yeah. i think that sends a very clear signal it was fascinating last week in san francisco, carl, i was in the room with xi jinping when he was having dinner with american ceos and xi jinping seemed like he was in a mode where he wanted

to project the idea on the world stage china is an equal global partner in terms of leadership with the world and the united states he wants china to be seen as a super power that has global reach, and his stepping in to this conflict, at least in this limited way, would be on par with that, right the idea that china is able to influence events around the world, a super power to be contended with in all these regional conflicts seems to be sort of the message xi jinping was sending in san francisco last week as well. >> we'll see if crude oil holds some of these initial losses appreciate that. let's turn to the latest on openai jon fortt spoke with microsoft satya nadella last night he joins us now to share parts of that conversation and anything, this is a fast-moving situation as well. >> it sure is, david openai still on the brink, and

this is the company that defined ai in the popular imagination this year in 2023. that's important to public market investors because it helped microsoft claim the high ground in ai as part of what has the stock near all-time highs still, and openai created one of the main drivers of demand for ai compute, and that's what's driven nvidia to all-time highs. that company reporting after the bell in overtime today i asked satya nadella what to do about openai's governance, whether microsoft needs a seat on the board of openai here's what he said. >> at this point i think it's very, very clear that something has to change around the governance and if that's sort of -- we'll have a good dialog with their board on that and we'll, you know, walk through that as time evolves the most important thing for me, for consumers to know, is today we have all the capability, this is where i know we love to talk

about, you know, the experiment. sam altman once chose microsoft, and he chose microsoft again why do you think that is it's because of the capability of our company to be able to innovate with openai, and so that should speak volumes to why customers can have confidence come what may, microsoft will be there, will continue to have the products and lead in ai. that's, i think, the core message for our customers. >> big ah-has out of the conversation some in silicon valley are referring to the openai governance issue as a silicon valley bank moment, not in the sense of, you know, openai is going to go away, guys, but in the sense of it's signalling to a lot of players in the ai ecosystem, you got to think about diversifying don't have your eggs all in one ai platform basket have your own models and something besides what openai is offering. >> jon, so many things here.

let's start with microsoft and what they continue to have access to at openai and for what period of time my understanding is they still, regardless of what happens now there, they still have access to all the i.p. they've been able to use to power their entries into this market >> they do and the question is what happens to the talent the employees at openai openai has been such a big part of what's driven so much of the industry's industry interest rate in building out ai capability and the perception that microsoft has this lead seems like satya nadella wanted everybody to know we're continuing to move forward whether openai gets its governance issues and leadership figured out or not and we're moving forward with sam altman whether at openai, whether he's at microsoft those employees at openai, they'll be either at openai working with us or at microsoft working with us. others in the industry are trying to argue, hey, you don't

want all your next that basket come listen to our pitch about what developers can do with our ai tools. >> yeah. well and, obviously, marc benioff putting an advertisement on twitter come to us. you can't discount elon musk and xai trying to build. software engineers very valuable svb, it's not inconceivable openai could almost collapse if they lose all their employees. it's hard to stay in business. >> and there's a question about who is the dominant force in the epic of ai at this point, how it gets developed, how quickly with what safeguards. i asked nadella about that, and he tried to make a strong case microsoft is building ethically, not just concerned about making a quick buck. >> great to get nadella at that crucial moment thank you for bringing us the latest let's take a break here but before we do, a road map for the rest of the hour the drama surrounding sam altman

continues to highlight the divide in the future of ai, and its development. early phase google backer roger mcnamee will weigh in. >> ahead of earnings tonight a lot riding on the results. shares of lowe's and best buy dropping on the back of their earnings and outlooks, but dick's sporting goods soaring. what results are revealing about the state of retail and consumer big show still aadhe stay with us dow down about 70 points (♪♪) (♪♪) (♪♪)

welcome back to "squawk on the street." best buy shares falling. lowe's dropping. the company citing lower than expected do it yourself sales. dick's sporting goods surging after boosting its forecast. here is michael laser, ubs retail analyst covers all those, buy on lowe's, neutral rating on best buy and dick's. is it as simple as where americans are prioritizing their spending right now they're not buying electronics and home goods and they are buying, i don't know, sneakers and hockey sticks? >> i think that's right, sara. i think there's a few different themes playing out number one is there are certain products that are in demand like sporting goods, athletic apparel, footwear, especially key brands, such as certain nike products benefitting dick's sporting goods the second theme that's playing out, though, is the consumer is having growing apprehension on spending on big ticket

discretionary items, things like televisions, cabinets, patio furniture, and it got worse from the second to the third quarter evident in best buy, lowe's and others who reported. the last clear trend is that retailers are having either decent sales or decent margins they're not having both at this point. so that's probably going to continue for at least the near term we'll see what happens as we get into next year. >> we got,isting home sales -- existing home sales. smallest since 2010, lowest since the 1990s. that does that mean we won't see a bottom in names like best buy or lowe's until housing turns around >> think about the things that come along with getting into a new home you need to customize the drapes, the cabinets, the flooring, buy a new tv, a couch, table, chairs. so there's clearly a repercussion to our economy from very low level of housing

turnover that should stabilize as we get into next year people get divorced, they move, they change jobs there is an inherent base level of housing turnover, but that doesn't necessarily mean it's going to get a lot better from here until most likely we see a decline in interest rates whenever that comes. >> you still a buy on lowe's $265 price target. see an opportunity >> i see an opportunity here lowe's is an objectively inexpensive stock that rebased expectations to what seems like a very achievable level. that's also going to have the impact of lowering expectations for next year and there's two factors really necessary for this stock to work in a meaningful way one is expectations set to realistic level and two some peak in interest rates because that will influence the multiple it seems like we're getting closer to both of those conditions being met, making lowe's a good name to own from here.

>> all right michael, thank you very much for your quick take. >> have a great holiday. >> you too. >> i'm sure we'll talk to you before holiday shopping. ubs retail analyst michael laser. we've got the nasdaq down some 6.8%. amazon shares down 2.7%. more news on jeff bezos selling potential stock there when we come back.

[holiday music] ♪ for people who love their vehicles, there is only one name on their holiday list... weathertech... laser measured floorliners that fit perfectly in the front and rear... seat protector to guard against spills and messes... cargoliner, bumpstep, and no drill mudflaps to protect the exterior... and cupfone keeps phones secure and handy... [honk honk] surprise!! shop for everyone on your list with american made products at weathertech.com...

laser. take a look at shares of amazon nice picture of jeff bezos haven't talked to him in some time does appear in addition to selling stock last week, we told you in the first hour of "squawk on the street," last week i talked about the -- what i was hearing was he was selling he did he gets like five days to file his form came out the other day. 1.673 million shares, nets about 244 million shares behind that, of course, he still had 988 million shares worth, some 144 billion reporting today from traders is the expectation he's in there selling today and, in fact, perhaps a lot more than just another 1.6 million shares this is, you know, sort of spec,

could it be 8 to 10 million? that is what some are sharing saying they think he has an order in to sell there could be pressure because on a daily volume basis that's not an insignificant amount of stock. by the way the last time he sold stock, best i can tell, two years ago, november of '21 might imagine given funding that lifestyle he needs to sell stock. he did change his tax jurisdiction talked about moving from seat toll florida and may be one reason why he sees an opportunity, sara, to sell some shares as you told me during the break, he's getting married. >> he's getting married. a killer wedding. >> that can't be cheap see the ring she has that alone. >> wow. >> did you see the "vogue" spread they did. >> i did. >> she's buffed up everybody is buffed. >> everybody is buffed. >> everybody is buffed. >> he's also been philanthropic we should say as well. >> not nearly as his ex-wife.

>> true. >> who is probably the greatest single philanthropist we've seen. >> well, it's moving amazon stock. down more than 2%. let's get a news update with leslie picker. >> good morning. in just minutes israel's war cabinet will meet as prime minister benjamin netanyahu says there are developments involving hamas hostages according to a senior u.s. official and a source in the region a tentative deal has been reached. a reported truce is said to include a cease-fire and lease of 50 israeli and international hostages with palestinian women and children detained in israel. as many as 630 foreigners and dual nationals crossed from gaza into egypt at the rafah border crossing. according to egypt's red crescent society about three dozen estimated to be americans two fuel tanks and 50 aid trucks reportedly headed into gaza from the crossing today and tomorrow are expected to be some of the busiest at airports this year with tsa estimating it will

screen 2.6 million at checkpoints today and 2.7 million on tuesday or on wednesday and more than 55 million americans tell aaa they will drive more than 50 miles with wednesday the busiest day on the roads carl, i was at the airport yesterday and it was already pretty busy. i can't imagine what today and tomorrow look like. >> we have weather on the way at least in the northeast thanks leslie picker. still ahead, long-time vc early facebook and google investor roger mcnamee will weigh in on the drama at openai, the fear surrounding the rapid development of artificial intelligence we're back in two.

my mom's life is the most important thing to me. hi mom! i called my mom, "i have this gene and i think you need to get tested." she feels like it was truly lifesaving.

getting a news alert on ford let's get to phil lebeau phil >> take look at shares of ford the company announcing that it is once again going to be putting work back into a battery plant that was planned for

marshal, michigan, though they are going to be scaling back that project as they said they were likely to do as they were going through the uaw negotiations due to slightly slower growth in terms of ev demand in the u.s., higher labor costs. this project, the marshal battery plant, where they will be making lithium iron phosphate batteries, 1700 workers, not 2500 will have about 40% less gigawatt hours in terms of final production but it will be, according to ford, the first plant ev battery plant in the u.s. that will manufacture the lithium ion phosphate batteries in the u.s that's important because these are the lower cost batteries that many believe are the key to lower cost evs gaining eventually in popularity. >> are you expecting anything out of the gm update they announced for next week? >> oh, i think they're going to give us new guidance because remember they suspended guidance during the uaw negotiations and

they're going to be plenty of questions in from analysts regarding cruise and what is the outlook there? mary barry has beenbullish on the future of cruise over the last two years given everything that has happened including the resignation of kyle vogt, the ceo of cruise, originally the founder, the ceo over the last year or so, two years, i think there's going to be a number of questions regarding cruise so look for new guidance and look for an update on what they expect out of cruise. >> it's important. thanks, phil lebeau. we have been following the latest on openai today our next guest says this is not your typical fight between board and management, but what is typical is the dysfunction elevation partners, early facebook and google investor roger mcnamee. thanks for the time this morning. you make the point that prior to all of this drama, the setup for microsoft was pretty ideal, and you think they would love to preserve whatever they can of

that >> well, i mean, to me, microsoft had a perfect situation because they owned 49%, they have a huge percentage of whatever upside comes from openai, but while the company is in the development mode where it's burning billions of dollars on developing products and trying to commercialize something before its time, microsoft's piece of that was captured in the form of azure services the expenses of openai were microsoft's revenue. a similar thing going on for nvidia if microsoft winds up having to own openai or at least, you know, employ all the people and have all the expenses, the thing goes from being a short-term positive to a drag on top of that, they lose the liability, right you have disney complaining about the theft of trademarks and stuff like logos and things like that, all of those things go away. so in the long run, it probably works out to the same thing, but

from a microsoft shareholder point of view, you really want them to put humpty-dumpty back together again i'm pretty sure that's what they're trying to do i think they're trying to figure out some way to keep openai viable, but as you see the dysfunction is pretty staggering >> how important, roger, is the original whatever kernel there was to motivate that friday afternoon press release and what they said about sam? >> they're not telling me, carl. i look at this as sam altman has a long history he's had fallings out with a number of partners in the past, and so the notion that there might have been a lack of trust that built up there, that doesn't strike me as surprising at all to me it's also not the key issue here i think as public market investors, you are really focused on the impact on nvidia and microsoft. the situation was perfect before the coup on friday the situation right now is way less than perfect.

it may not turn out to be bad, but think about it being a little bit like the metaverse at facebook obviously, if there had been an independent company doing all the metaverse investment all facebook was getting paid for was to operate the servers, that would have been a much better deal tfor meta than what they have now you're going to effectively convert openai into a subsidiary of microsoft, that would be in the short run a bad outcome, but we're going to have to see i watched those interviews with satya nadella yesterday and it's pretty obvious he wants to put humpty-dumpty back together. >> can we talk about openai for a moment and what this board did here potentially erasing let's call it $86 billion in value to, i don't know where it could be roger if they don't put humpty-dumpty back together. it is a unique company with a unique structure and that's why the board was able to act in the way they did, but just give me your thoughts because you've looked at companies like this in

terms of investing in them or at least earlier stage. >> yeah. so, you know, david to me, this is a really, really perfect example of why the world of 5% interest rates is fundamentally different for the world of 0% interest rates when rates were 0 we had unicorns and companies that had no prospect of profits for a decade or more could raise unlimited capital at huge valuations in essence, that door closed when russia invaded ukraine. now for openai they did their deal with microsoft to create the illusion that rates were still zerop and incredibly, they found some buyers for financing now that were willing itten to -- willing to play that game. the notion that at 5% interest rates a company like openai, which is years and years and years away from profitability,

would be worth a number, you know, in the tens of billions of dollars strikes me as, well, from an investor point of view not a good bet we'll see what happens here. but to me, this is kind of take -- showing the emperor's clothing and the wardrobe is empty right now. we'll see. doesn't matter how good the product is profitability is a long way away. >> it's a long way away? they were having big revenue numbers though >> you know, we'll see they're telling you they're having big revenue numbers, right. i do think with these things the whole fake it until you make it is a lot about selective disclosure of statistics that are favorable and perhaps everything is and perhaps it will have a billion dollars in revenue because of the excitement that microsoft has created, but what is it going to cost them to produce that? you have to look at the use cases for product that isn't designed to be factual, it's

designed to be, you know, something that is convincing, you know, that is plausible, but not factual. i'm not sure that the use cases for something that's just plausible are all that valuable. we'll see. but the notion this is going to improve productivity i find to be a stretch. >> roger, even if it is, that's what microsoft is willing to pay for it isn't the bigger issue here there was a disconnect in the investors like microsoft and the board? a nonprofit governance structure. do we have to have a bigger conversation about that? and incentives are aligned there? >> i hear you. here's the one thing i would point out. microsoft didn't put up $10 billion in cash last year, right. they gave $10 billion in credits for azure cloud services which, again, it was their -- they priced it at $10 billion

it would be really interesting to see what the retail value of those credits actually is because it was tremendously convenient to openai to say that it was $10 billion worth of value. but the behavior since then the fact that they're out raising money again suggests it wasn't $10 billion worth of value it's like the old joke about ebay in the '90s a kid comes home and said i sold sparky the dog for a million dollars, and he goes where is the cash some i didn't get cash, i traded for two half million dollar cats. a lot of that going on here. both sides want the sticker price to be high, but we don't know that it's high and we don't really know there are 100 million active users of this we just have their word for it again, maybe it's true but they wouldn't be the first company to exaggerate if that's what was going on. >> right what about incremental opportunities for google, meta, amazon are there many >> well, i think this levels the

playing field, right if humpty-dumpty stays broken, this is an opportunity for everyone else to catch up, but i think from a securities and exchange commission point of view it points out something that's going on in the category that we've seen, which is that companies that have monopolies of huge markets are using their balance sheet to fund startups in adjacent spaces they want to dominate if you look at the funding of anthropic, the funding of any of the competitors, it's all the same basic model, that people who are big beneficiaries of growth in this category, namely nvidia and the folks who own cloud services, are providing financing at high values hoping to then attract cash investors to follow that and, you know, all with the goal of building giant monopolies where most of the value is captured either in the semiconductors by nvidia or cloud services by microsoft and others you know that's a well-worn path for creating incremental

monopoly value but at some point you can imagine somebody saying, you know, maybe that's not best way to develop. >> when they say goliath is winning it applies here. that's for sure. have a great holiday great to chat with you thank you. >> bye-bye. >> roger mcnamee. >> still ahead, berberry and richemont pointing to a slow down in luxury spending. one specialized part of the high-end consumer with the ceo of sotheby's as we continue to see a selloff. the dow down about 100 points. the s&p losing 0.4%. nasdaq getting hit in part because of amazon, microsoft, nvidia lower ahead of earnings, apple down as well tesla, though, going the other way. "squawk on the street" will be right back .

welcome back to "squawk on the street." high-end consumers seem to be slowing their spending on luxury items. the art market seeing a dip. the auction houses saw their new york sales fall 31% from last year 20% down from 2021 only one auction house reached a billion dollar level for sales or that week of the season, and that was sotheby's joining us is the ceo charles stewart. you did all right in what seems to be a tougher market is that a fair characterization? >> absolutely. we were delighted with the result as you say well over a billion dollars in the last couple weeks certainly the market is more discerning, perhaps a bit thinner, but we saw bidding from 50 countries and sold over 700 paintings in our art sales last week. >> what is discerning and thinner mean and a reflection

of >> i think, you know, geopolitics around the world mean that people are distracted, you know, certainly a lot of more speculative money has left the art market i call it a real money, real collector's market and you're seeing, you know, work that is fresh to market, very high quality, a-plus examples of that, you know, piece, does extremely well in this market, but other things do less well. >> yeah. you guys will guarantee an overall minimum price, i guess, to secure certain collections that you want to sell. does that turn out in this kind of a market, is that a riskier undertaking? >> sometimes we guarantee works for collectors it's worked out well for us. we manage risk, you know, very well, and often times we'll offer collectors the choice to accept a guarantee or just to work with us on a commission or agency basis. >> can we talk about the lewis

hamilton car at f1 this weekend. that was a car from two years ago, right early season in yeah it was lewis hamilton's 2013, first, you know, the beginning of the lewis hamilton mercedes dynasty, the first season and we sold the car in las vegas last friday afternoon that set a record price for any modern formula 1 car at $18.8 million. >> is that something about the overall market or something f1 specific in terms of fans? >> in addition to the art market on the luxury side of our business, cars we sold at $55 million 1962 ferrari gto, record auction price for any ferrari, followed by this lewis hamilton car. we sold the highest value bottle of whiskey or spirits for $2.7 million last week, 1926 mcallen. and 770 barrels of burgundy in france i would say across the board,

same rules apply there is money out there there is interest. but it's discerning and looking for the best of the best. >> do you think there's a corollary between demand in the art market and what the stock market is doing? or is that historic relationship a little loser right now >> there definitely is i think that -- although i will say the last two weeks have been very much an affirmation for the art market, there was a lot of concern about how would these sales do and to come out, you know, for us our sales were meaningfully up year over year and year on year, year to date, were about flat year over year, these are great results, healthy results for us, very much an affirmation. we're definitely seeing, you know, the sentiment in the u.s. is an important part of the business asia has been a little bit quiet, and, you know, good bidding from europe and parts of the middle east. >> i can remember a few years ago, charles, we were talking about the digital

representations that were selling for enormous sums and you were looking at it and getting involved did that all die away? >> the volumes are way down, that's for sure. it is still there. we sold a piece of digital art for over $6 million a few weeks back and we definitely believe in, you know, digital a genre. it just seems obvious that creators are going to use digital tools and lean into it, you know, rafiqu what he's done, you've soon the lobby display. >> finally, where is much of the art that is being sold ending up is it in the mideast, asia, sort of -- whose homes do i need to go into to see it on the walls >> i'm sure you'll see a lot of it, david, knowing how you travel. >> oh, yes, you know me. >> you got that right. >> it's very global. as i said, in our art sales, 50 countries represented. so, you know, a lot of it is private collectors we saw museums quite active as

well so, you know, i'd say it is one of the positives of our market is how global, you know, the interest is. we've got over 100 auctions left this year. so, there's still a lot to come. we've got a wine auction in hong kong next week that is one of the best collections ever. and that's going to go incredibly global as well. we see a lot of global interest. >> sotheby's itself, you know, i've talked about drahi being under pressure in other parts. is there a chance you would look to sell a part of sotheby's? >> i don't think so. this is a business that's been very successful. patrick acquired it as a business and also as a passionate collector it's something he's very committed to and sees as a core part of who he is and what he does. >> charles, thank you for stopping by, filling us in appreciate it. >> thank you >> charles stewart. still ahead on qu"squawk on the street," the ceo of

abercrombie & fitch joins us that's coming up at 11:00 a.m. eastern. if you missed our new cnbc documentary "inside track:the business of rma foul1," you can now watch it on demand on peacock.

the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network.

the last of the magnificent seven set to report tonight as nvidia tries to build on their monster year kristina partsinevelos has a look at what to expect big night. >> especially when you saw the stock close at an all-time high yesterday. investors have high hopes with 170% revenue growth as estimates. that translates into roughly $16.2 billion in q3 revenue driven largely by data center revenue. nvidia's track record ain't too shabby either. it's beat revenue three out of four quarters. the optimism comes despite updated export restrictions and tight gpu supply after 250% year-to-date stock growth, management is going to have to convince investors they have not hit an a.i. peak. nvidia has been selling its chips as fast as they can make them investors will want to see what demand is once the company's

manufacturing catches up the microsoft ceo said the supply was improving the popular h100 chip is roughly $27,000 each remember, they're buying tens of thousands in each data center. the new gpu out in late 2024 will be roughly twice that price, so $50,000. nvidia may be making work-around chips that will be allowed to ship to china, but is that enough to offset the impact? lastly, gaming weakness. amd gaming fell 5% quarter over quarter in september they're expecting it to decline in december quarterly, so that could trickle over to nvidia the a.i. tailwind for the magnificent seven.

goldman sachs said those seven account for 25% of the s&p market cap and have collectively captured 73% year-to-date. from this earnings report, we're expecting more light on the a.i. drive going forward given the somewhat dismal capex spend we saw from meta and some of the hyperscalers. >> we'll be watching closely after the close. thank you. kristina partsinevelos nvidia shares down ever so slightly from what was an all-time high yesterday. "squawk on the street" continues right after this i was on a work trip when the pulmonary embolism happened. but because i have 23andme, i was aware of that gene. that saved my life. all right. 60 seconds to draw the perfect gift. what's it gonna be? a bottle of don julio, 1942, delivered. delivered with drizly. gifting without the guessing.

drizly. ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪

i'm going to sell my life insurance cuz i don't need it anymore. my kids are grown, my wife is great, let's settle up the score. it's time to travel to paree, spend retirement happy. call 877-sell-easy. 877-sell-easy. 877-sell-easy, and sell your policy. you can sell all or part, live your life and play it smart. 877-sell-easy, and sell your policy. if you've had a change in health, or you're over 65, and paying for $100,000 or more in a life insurance policy you don't need, get paid for it instead. then take the money that you get, go to live it up, you bet. call 877-sell-easy. 877-sell-easy. 877-sell-easy, and sell your policy.

welcome to "squawk on the street." i'm sara eisenh carl quintanilla. jared bernstein with us. a look at the economy, where it's been, where it's headed and how they plan to sell bidennomics to the american public. and the state of the credit market josh friedman of canyon partners is with us where he's putting his $24 million to work and where he sees cracks forming in the lending space. we'll get a check on the market s&p and nasdaq riding a five-day win stre