we also have a slight overweight to bonds where you can earn more than the rate of inflation with yields where they're at today. >> very good. thanks, brenda. >> thank you. >> brenda viiello. no jobs report today. >> no. >> next week. next friday, even though it's december 1st. >> i forget the reasons why. it's calendar reasons. >> we'll getou ready f it on monday "squawk on the street" is next. ♪ good friday morning, welcome to "squawk on the street i'm david far, he is jim cramer, and we are live from post nine of the new york stock exchange. carl has the morning off. let's give you a look at futures as we wrap up trading for this week, and of course start a new month. and you can see perhaps on a bit of a lower ne, particularly for the nasdaq. our road map does start with november.market search we saw in

global stocks reported the best what is ahead, of course, as we begin december. plus, shares of pfizer are falling rather sharply. oral obesity drug, but the side effects, a bit of a problem. and elon musk says here he's back in the spotlight, but really, is he ever out of the spotlight? he's, of course, hyping tesla's w cybertruck. shares, though, down once again, we'll talk a bit of tesla. let's art wi the mkets, ough, we kick off the month of december. happy december 1st, my friend. i can't believe another year is wrapping up. but let's not dwell on that. >> let's dwell on the russell 1000 and people saying the magnificent seven, done. >> okay. let's dwell on that. what do you think? >> that's a wrap. >> buy the russell 1000?

>> i like the russell 1000 here, because percentage gains are what we want, and it's very hard to get a big percentage gain from any of the mag 7, but you can find stocks like affirm, data dog. these are what you want to be in. >> i'm curious, thgh, is it your belief that the upside for the magnificent seven, which, of course, powered the s&p over the course of the last 11 months, is sort of going to lag a bit? >> right now, yeah, and i think there's going to be a broadening out, which i like, david. i like a broadening out, but it's going to be in these stocks that, frankly, are lower quality. and i don't want to slam ulta, because they had a great quarter, but when you can pick up 10%, just -- that's what people want. they don't want incremental. individuals coming back.

they like what they see. they like what they use. it's back to that. right now. >> right now, you think it's back to that? >> williams sonoma rings the bell. >> here at the new york stock exchange. >> that's what people want, david. they go to the mall, the stores are crowd, they want to buy stuff. you laugh, olaplex. mr. olaplex, you laugh. i'm finding the stocks they want. you find the stocks they need. >> i'm not in the business of finding any stocks at all. i'm just here to give some context and analysis and just be here for you, jim. >> no, actually, i'm not kidding. the russell 1000. >> how long this is going to hold. you sort of sometimes change your mind a little. you think that this is going to be a theme, that this broadening out will continue for some time, and obviously, we saw november's gains. largely, many would say in part because of the significant increase in bond prices, the selloff, the yields that

occurred certainly during the last three weeks. >> but short squeezes too. >> yeah. >> the smart money never caught up to what's happening. a lot of people truly went with the hand that they had been given. look, i'm not going to pick on mike wilson. there have been other people who have been negative. but when you can catch a victoria secret, which had a very good thanksgiving, pvh, three great days -- actually, pvh had a very good period. >> you weren't happy with the earnings. >> so, this is a good example. >> i remember -- >> no, the conference call occurred the next day. the numbers that came out the night before, it was a guide down. forecast cut. david, a forecast cut before the bonds turned to be your friend, boom. now, tommy hilfiger. good look. calvin klein? not in t.j. maxx this year.

macy's. >> really? >> yes. i was going to stock up at t.j. maxx. >> give it a beat. david, what do we do with a truck that's bulletproof? >> we're going to move on to that in a second, but i want to get a road map from you a little bit more in terms of the month ahead to the extent you think so. so, russell 1000, you think there's going to be a broadening. you think there are opportunities in certain stocks that pick up significant percentage gains, although we're not going to have a lot of catalysts, jim. earnings season is over. >> no, but you know, david, i think the theme that we're going to see -- and people better get used to -- is that the consumer is very strong. very strong. we're having a backlash. the stocks that are going up are consumer-led, and also, and i think this is really important, companies that were driven down by the glp-1, by the obesity drugs, coming right back big. dexcom. we're still going to have

diabetes, unfortunately. aditi ki dexcom, up huge. coinbase, short squeeze. >> that has nothing to do with glp-1s. >> shift for payments. >> what are you look at over there? >> the winners in the nasdaq. okay, david, one of my absolute favorites, and i know you liked it too. >> tell me. >> mr. car wash. >> oh yeah. >> it's not unlike when mickey drexler goes up in the car wash scene in "breaking bad." good cash flow. now, by the way, i'm actually being serious. these are the stocks that have done well. november was just an amazing month for mr. car wash and a lot like -- affirm, roku, coinbase, block, gap, olaplex holdings. do you even know what that is? >> of course not. >> shampoo. >> shampoo? >> yeah. >> as we go through the winners -- wow, look at expedia. >> if you get your hair colored,

which if i had hair, believe me, i would color it. i would use olaplex. 27 of the top stylists love it. >> got it. >> you could use it. >> no, i'm just going to keep going. >> okay. >> it's going gray slowly. >> anyway, look, i'm trying to catch people's attention here, because -- >> oh my god, there it is. olaplex. who knew? >> it's time. it is time for olaplex. >> oh, you know, by the way, whoever had the olaplex will be mentioned in the first seven minutes of "squawk on the street" this morning, that's got to be a big one. you're a winner. >> david, rover got the bid this week. rover. red rover, red rover, blackstone came over. did you follow that deal? blackstone bought rover. >> i did actually see that. >> for two bil. that's what i'm talking about. you can have -- you can have all the microsoft you want. i want rover. special friday edition of "squawk on the street." >> i've disconnected here from my data source. >> that's impressive.

>> you want to move on to the tesla cybertruck? you want to talk tesla? >> better than cloudflare? sure. >> you just said a lot of stocks. >> that's the essence of the show. >> i'm still trying to find out what olaplex's market cap is. >> two bil. >> i get 1.5 in my ear. you're high. >> just wait. this is the stuff that's moving. i'm just trying to present the new market. the new market. it started in november. >> and will continue. let's finish this. will it continue in december? >> as long as interest rates are down here, yes. >> okay. all right. >> yes. david, the -- the bond rally is the best since 1985. you can talk about the best stock rally sie, i don't know, '21 or sething. hell with that. let's talk serious. let's talk trucks that can stop a bullet. >> let's do that. on to tesla and the cybertruck. elon musk, he presented the first pickups to customers

yesterday. it was a delivery event. it was in austin, texas. starting price for the cybertruck is around $61,000. that is about 50% higher than at least what tesla initially said they wou be pricing the truck at. of course, that was back in 2019. >> yeah. >> when we first were introduced to the truck. remember when they threw that metal object at a window and it broke. but as you see yesterday, it was all about elon welcoming people to sit in the truck itself. you have talked about it being perhaps popular but not in the way of a typical -- >> no, it's -- look, it's a period piece. look, the jonass of the world, they're talking about not a lot of deliveries this quarter, but david, i've done work on this too. i come in peace. you ready? >> yeah. >> all right. i have talked to a major industry exec in another auto company, okay? >> right. >> since the glass cannot stop a

bullet, and humans' vital organs sit above the door lock, it's really not compelling at all from a safety point of view to say it's bulletproof. >> it's not bulletproof. >> no, but this is -- it's kind of like "spaceballs." >> okay. if you say so. >> yeah. >> what's that going to mean for tesl that's a lot of bullets. >> apparently, it was stainless steel. >> why?t that. some say to avoid the investment in a paint shop, which costs $100 million. this is priceless. >> what do that mean? >> why do you mock me with your silence? is is some of the best stuff ever. got there?happy with what you >> yeah. you didn't see that. >> as for what it means for tesla, shares have been moving down over the course of the last week. of course, elon was andrew sorkin's guest a couple days ago. really not a lot of conversation about tesla during their

conversation. we've covered, obviously, a lot of the things that he had to ss say. but i did notice tesla shares did move down yesterday. sometimes it moves in sympathy with people's view of x, which is a private company and has virtually nothing to do with tesla, except it's owned by elon musk. >> tony, you know i respect his work, super nice. he's got a sell on tesla. >> he joined us yesterday on "squawk on the street." >> did you hear his numbers of how many they're going to sell? 250. >> that's not with any zeros behind it. >> no. 250. and morgan stanley, of course, jonas comes up with a good one. >> give me the jonas report. >> he says that they will sell 50 in fiscal year '24. >> this year? >> yeah. >> but it's not about this year. come on. >> that's not a lot. >> they see -- ultimately, they could see sales as much as 250,000 a year.

>> it's a lamborghini. it's for the fan boys. it's everything that we hear about. >> meanwhile, the model y is going to be the biggest selling car in the world. >> no, no, i hear you. >> period. >> that, i like. >> not evs. in the world. >> and there's a refresh cycle that's going to be terrific. i'm just saying that this is a -- this will sell, because there are enough people who love him, and it does tow. mine doesn't tow as much as this. >> no. i haven't gotten my cybertruck yet. do we have a picture? i saw that nice cybertruck. there it is. >> my maverick is not -- >> that was early days, by the way. that was back in may. >> my maverick's not bulletproof at all. >> still wouldn't let you in the car. now you can actually buy one. >> okay. >> that was a great day. >> well -- >> all right, jim, you ready to move on here, take a break? >> no, what time is dan on? dan thinks it's a -- >> dan is not coming on today. >> they changed that. >> not this network. >> dan likes it. >> dan ives likes tesla?

>> he likes the cybertruck. he's got 79,000. people like it. delivery targets, he thinks 2,000 to 3,000 this quarter. that's a lot more than 25. >> 50 or 250. >> do the math. >> when we come back, we're going to talk a bit about pfizer because it has had a setback on its effort to capitalize on that market for weight loss drugs. let's give you a look at futures this morning. we are set up after a very strong november, in ct, the best month that we have had in resqwkn d ha.na lf mo "ua oe street" straight ahead. afting) ♪ the biggest ideas inspire new ones. 30 yea ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪

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pfizer is the worst performing s&p stock at least in the premarket this morning. the company announced it's not going to advance its twice daily obesity drug candidate into a phase 3 trial. patients experienced adverse side effects. pfizer says it will focus on a once daily version of the drug with phase 2 data due out in the firshalf of 2021. jim, it's oral, obviously, which you make the point that what is available -- excuse me, 2024. i i said 2021 for some reason. the drugs that are available now, you have to actually inject. >> yes. >> there are many oral formulations being worked on. this was one by pfizer, which obviously does not have an entrant, unlike eli lilly and

novo, which have the drugs that are on the market in the cases of wegovy and mounjaro. a lot of people, greater than 50%, stopped taking the drug. >> total loser. and pfizer has had a string of tough, let's say, shortfall of new drugs, including nurtech, which they bought for a great deal and have missed the projections right out of the sci chute. this is a great migraine drug. 67% of the people who take wegovy don't like to use shots. this was going to be the big winner for pfizer. >> although i would also note that the weight loss in the trial was significantly less. >> yeah. >> than the weight loss you get, for example, on mounjaro, which can be as much as 22% of your body weight. here, they were talking about 9.5%. >> wegovy, 18%. now, david, i have to -- you

know that the unh's of the world will have trouble with this, with the price tag, because david, there's a hundred million people who are obese. everybody could take this thing. they have to figure out a way to deal with pricing, and david, we have not talked enough about medicare negotiating as of the i.r.a., and so you have medicare trying to put pressure on the drugs. you have the -- these major surance putting pressure on the drugs,nd is there any wonder that the drug stocks have been horrendous? >> except for eli lilland novo this year. >> bristol myers is terrible. >> you're right. and yocan take a look there. then there's pfizer, jim, which had the -- had a covid bump, obviously, given the both paxlovid and the vaccine itself, but as i pointed out many mes, really has not done much of anything over more than 20 years. you got a dividend, but you can take a look.

you know, it's n pretty. >> dr. borla is trying. he's buying things. >> he's trying to buy cgen. >>ow is that possible? there's zero overlap. >> it's going on. i try to get a check in. listen, they're now talking -- it's already december, so next year, early next year is the and get the second request over and done with, and they are able to close. i've got no real updates for you. they thoughtt would have been some time ago, pfizer taking its time to comply. >> this deal, huna-cigna, was that just a trialloon? >> you were here whei talked about it yesterday. >> it was great in that you had. >> i haven't heard anything. you would have thought at this point if cigna were going to say, we're not doing this, they would have made that clear. they haven't, and i think, as i said, there's a lot of concern and question as to how they would structure the deal as cigna, a buyer given the multiple disparities, cigna

trades at a far lower multiple than does humana, not to mention, of course, the regulatory review, which will extraordinarily difficult. so, what would ban enormous al, by the way, at least reported on by the talks in the "wall streetournal." we have heard nothing since. >> the core ement ofhat lina khan thinks is that these deals are bad. almost a deals are bad, she says in one of her interviews, but david, the idea is, you need as many competitors as possible. period. and this is anti-competive. now, they'll tell you it's not, it's -- it helps the consumer, but that -- she's not thinki about the consumer. >> it's the pharmacy benefit manager consolidion. >> she's thinking about -- >> they both -- that'shere i would be. not medicare advantage, which cigna does not have a large business in. >> i wouldn't know anything about that other than the fact that i use it. >> are you a humana customer? >> that's their program. the medicare program is

fantastic. but th is not part of that. not at all. but boy, that thing's a killer. >> right. and can you get -- not that you need it, wegovy, if you wanted it? would you be able to get that? >> you can get anythg with this humana. not -- i mean, i don't know, but i've never seen -- >> they've never said no to you for a drug? >> they're fantastic. the drug i invented for tinnitus? no problem. it's got a patent. look for it. look for it on your shelves within the next two decades. >> okay. all right, coming up, jim's going to get ready for his "mad dash." we'll count you down to an opening bell that's less than nine minutes from now. let's give you one more look at futures. we are going to have a lower open, it would appear. who knows what will happen during the exciting trading day ahead? e a t resqwkn "ua o thstreet" for you.

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can take a look at the biggt laggards this morning, of course, led by marvell. tesla, right up there. wealked about that with the introduction of the cybertruck. pdd holdings, that's just had great week. we're going to talk more about temu later in the program. positive research this morning on that we'll get . and alibaba, negative. lot more coming your way, including that opening bell. stay with us.

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>> announcer: the opening bell is brought to you by nuveen, leader in income, alternatives, and responsible investing. as we let the strong growth this year, consumer spend has remained healthy. while we eect growth will continue to normalize to storic ranges, we remain confident the category will continue to ow, barring a macroeconomic event. in addition to factors that have driven the category historically, including a strong emotionaconnection with

consumers, newness and innovaon, and societal changes -- >> all right, it's time for the "mad dash" as we count down to an opening bell about two minutes from now. that was ulta's ceo. yotalked about it a bit at the top of the show, why? >> so, like victoria's secret, like foot lock, like pvh, you go on the call, the call's fine, good, good, and then kimbell saysthe third quarter performanc ulta beauty team delivered strong performance for the quarter and then it talks about how right now, christmas season, really strong. d then the stock goes up 50 points. 50 points on the mention of how strong things are right now. >> right now. >> foot locker jumped 16%. victoria's secret jumped about 10%. pvh was down 6, en finished up 6. david,'m telling you this is proving to be a very strong brick and mortar holiday season.

people aren't talking about it. everyone's busy talking about e-com. >> we get so many different data points, it's almost hard to make sense of them all. you get the adobe and the mastercard data. >> everybody that is -- >> what we're hearing, to your point, on these conference calls, which obviously are discussing the preous quarter, when asked to weigh in on what they're seeing right now, these strong.e saying, demand is >> november was unbelievable. victoria's secret -- now, david, here's something that's really interesting. both the mass and the prestige cosmetics are selling well at ulta. it's usually one or the other. both. >> what about estee lauder? >> what about boeing? >> what about estee lauder? are they a beneficiary of this at all or no? >> they are. mac is selling well. estee lauder has been disappointing. boeing upgraded.

david, why don't you mention disney? i'm long on disney too. there's a lot of stuff. there's a dividend. >> yes, there's a dividend at disney. i will mention it, jim. have a look at the realtime exchange. williams sonoma. at the nasdaq, granite shares. >> okay. >> peppermint bark? is that what it's called? right? that's what williams sonoma has? i don't know. >> west elm, maybe a comeback. i like wayfair, doing very well in the russell. williams sonoma's having an unbelievable run since they reported that last quarter, and i think laura albert is doing an amazing job. it's indicative of what people

are buying. you can go to the outlet and buy damaged stuff, but it's only the boxes, david, not the product. >> only the what? >> the box. go to tanger. well, let's say a box is bumped in transit. >> okay. >> you can get it, and it's substantially less money. >> oh, i see what you're saying. the outlets. got it. yes. okay. got you. >> but you don't shop, so what the heck do you know? >> i shop as little as i possible can. >> tanger is doing so well. simon ap simon property is doing so well. upscale mall. target today, that's strong. they're having an incredibly strong period. they are. >> i see you getting really bulled up here. >> it's just the it's the holiday season started off really strong. >> okay. you don't have to feel guilty about it. >> i'm just saying. >> just saying? all right. you ntioned disney. let'tell people the news here. cash dividend, 30 cents a she.

second half of fiscal year '23, that will be payable on jan 10 of 2024, so they're pleased to declare a dividend forheir shareholders as they continue to invest in the company's future and prioritize what they say is meaningful value creation. you happy you're getting a dividend? >> yes. i think it's terrific and a sign of strength. but u know who's not happy? >> yes, i do. >>pparently nelson peltz. >> yes, he apparently isn't. it's unclear exactly wt it is he wants, other than a higr stock price. >> seat at the table. maybe all the seats at the tabl >> my understanding is, by the way, the board of disney was in town, i believe, this week, and peltz was invited to come see them, not to have a seat at the board, but as a shareholder, to come listen. talk. and heeclined. >> hm, hm. >> that's what i he been told

from people who know. take it for what it's worth. >> do you think that -- >> he has not undertaken this proxy fit as of ye we do not know, who, in addition to himself, he will nominate to e board of disney, and we're waitinto hear sort of what the plan is that he woulpresent and say they're not executing on and/or why because disney said there's no compelling reason they see for having him at the board. >> well, i do know that the self-effacing nature of bob, i don't know. i thought that hwas -- look, we made too many movies. he said, "we." he didn't throw chapek under the bus. i mean, he's like thm-104, david. he's under the m-104. >> yeah. >> and also the six, the five, the four, e ree, the d, the r. he's under all those. he's been thrown under every one of them. >> name the whole new york city subway system? >> the q.

>> q is a great train because it goes west to east, which is really nice. if you need to go downtown, west, to uptown east. while we're on the subject of disney, let's talk streang. let's talk apple and paramount because they are apparently taing about bundling. this is a "journal" story, "wall street journal" story. they're lking about bundling their streams streaming service in some capacity. a combination of paramount plus, apple tv plus, and then you would spend a bit less than you do for them separately early stages, says "the journal." not a surprise that this would be somhing undertaken. in fact, a couplweeks back, when i spoke to johnalone, we talked about the benefitof potentially bundling the ad-supported tiers of some of these streamers. take a liste >> i think all of the old media companies will now reach the same kind of -- that's just pace this was a trend setter, and i think all of the old media

companies that are struggling with streaming will now reach this same kind of an agreement with the ad-supported stream, at least, will be bundled with, and the consumer will ha the option of upgrading to the non-ad-supported tier, so finally the distributors, the traditional distributors and old media, will at leastto some degree, playing together on the same field. which is about time. >> he's also talking there in part about the disney charte deal as well. get access to some of the rs to staming properties without having to pay more. this is coming, jim. in a sense, you're almost recreating the bundle over time. >> is there any chance that the -- that this fabulous

premier league could be bundled with mls? because i got to tell yo there's very few things to, to me, are exciting. can bring together some sort of a sports bundle for that consumer, without a doubt. it's a possibility, it wou seem. >> that would be huge. >> you're not -- you're not going to cate a separate product that includes it. create a skdiscounted bundle of streamers. >> roku is one of the strongest performers in the russell because that is still the way people play this. david, warner bros. discery, zas, conviction by the -- >> it's no longer a conviction by goldman-sachs. >> what's your thinking? >> the stock is barely down. i don't know. some people do follothat conviction buy list at goldman. i would think after all these years, come on. >> constellation, very strong quarr, and nobody seems to care, elliott's in there agitating. modelo, number one beer.

nobody seems to care. >> youe talking now about constellation. why do you think nobody cares? they say beer tastes like water if you take glp-1s. >> really? you think it's a glp-1 discount? >> yeah, and diaggio is being crushed by it, because the browns don'tell well. this is all in the perspective of what's going to happen. mondelez bounced back, which is maybe the most snacky of the snacks. came back. but alcohol is what is going to tested for next, because apparently, if you are a two-drink-a-night guy, you don't want it. >> really? >> yeah, because alcohol tastes like -- well, i don't know. wine too? >> oh, yeah. oh yeah. >> really? >> i'm just telling you what they do in the test. that would make me very sad. i want to keep exercising, so i don't have to go on the glp-1s so then i can keep driing my

wine. >> i'm not kidding. that's the next test. the next test is because heavy drinkers -- >> i know you said it. >> heavy drinkers have no interest in drinking. >> you have said it could end up dampening people's enthusiasm for drinking. >> biggest source of obesity in the country, apparently. so, i just think that's causing a pall because if you look at what united health is trying to do, they want obesity to be controlled, and if it makes it so alcohol is not -- i mean, alcohol, a lot of people really coming to terms with as being not great. >> on that note, we should point out, shares of pfizer, of course, have opened. we've spent some time already discussing the fail, essentially, of what was going to be an oral glp-1 to try to reduce weight loss to compete with the likes of wegovy from novonortis and mounjaro from eli lilly. stock is down over 6%. >> but lilly is only up 3%. my trust owns lilly, unlike

boeing, which you made me sell, and lilly should go higher here because that was the big objection. nobody likes to shoot themselves for a lot of money every, you know, whatever, day, and once a week. but you know what? david, if there's no pill alternative, you're shooting yourself. not shooting yourself. >> you are injecting as you need to at this point. eli lilly is still by far the largest of any of the companies, and it's only the last year that has taken place, given the enthusiasm around this class of drugs in which they have the leader. >> david ricks is a big believer in innovation, not buying innovation, although he has bought some. i was told because i was the spokesperson for the american brain foundation, everybody keeps saying they have the best alzheimer's formulation. >> really? >> yes. >> there's been no real progress

made, sadly, on alzheimer's in a significant way. there are some things that, you know, some drugs -- we know about what happened with biogen. >> slowdown of dementia. >> in a significant way. come back to this. it's a lilly drug? >> yeah. yeah. >> all right. >> to qualify, you have to have a couple brain scans, heavy plaque, and you have to have people in your family, your parents having it. and then the drug companies will pay for it. >> but this drug doesn't exist yet, that you're talking about? >> it will be approved. look, i like ge health care because of it, because you need contrast mri showing that you've got plaque build-up. you don't get to be the chief spokesperson of the american brain foundation for nothing. >> no, you don't. not for nothing. >> i started my speech by saying that i was bat crazy.

i thought it was a way to get people's attention, get the room quiet. >> tell the truth, too. dell. can we talk a bit about dell? >> it's a cadence thing. >> stock is down 7%. dell did report on that odd reporting schedule. they're trumpeting the fact that they delivered roughly $10 billion, $9.9 billion in cash flow from operations over the last year. $2.2 billion for the quarter. but you can see right there, worries about pc demand, jim. >> morgan stanley, which has been the big champ, says, demand's slow in september and even more so in october. large enterprises got more selective. we know the word selective is bad. pcs slowing corporate. we hit buy. reiterate buy. >> thanks for that. meanwhile, to your point, that's a significant percentage re duction overall in shares of dell. sort of got caught up. michael dell, silver lake,

delivered a lot of broadcom stock for vmware. >> 1,300 immediately. whacked them. that's hawk's way. >> it is the hawk way. we're talking out adgo. >> the stock has a lid on it. just monster lid. >> why do you think that is? >> i don't know. people say dell might be selling. i don't know if dell is allowed. >> you know, i think they are. i think michael dell is allowed, and i think silver lake -- but i don't have updates. >> the numbers should be going up gigantically, but the stock is going down with speculation that it's just selling. >> that they are -- right. owners of vmware sold to broadcom. they have a good amount of stock and the we question is, will they be selling it? to jim's point, that's keeping a lid on it. reaction to this quarter and again the worries about pc sales. >> nvidia. >> all right. what about it? >> positive read-through by marvell. the rest of marvell, this is the

mrvl kind, not the marvel comic kind that everyone's so -- anyway, mrvl, down a lot. this is matt murphy's company. he does a great job. absolutely strong read-through to nvidia, but the rest, not as strong. traditional tech. just keep in mind that a.i. is still strong, but the -- like the pc complex is still not coming. >> yeah. you think at some point a.i. will reinvigorate the pc complex, don't you? you think it will change the nature of the experience. now, we ran sound from jensen's interview the other day with andrew. talking about the computer being completely remade, so to speak, and that's what nvidia's sort of been a part of. >> one of the great partners i had on a 52-week high, vertiv holdings. they make the -- dave cody is the chairman. they cool datacenters, and they are jensen's partner. if you go to the site, there's a jensen endorsement saying that

everything is going to change. there won't be anything that's the same. >> yeah. >> what'd you think of the piece? "the new yorker" piece? did you ever get around to -- >> i did. i almost finished it last night. i learned a lot about jensen. i learned a lot about him. i knew nothing about his background and obviously listening to him the other day, because you know him well. i've never gotten to know him. >> i call him da vinci. >> he's one of the most significant figures in the business world and of our time but certainly the belief in a.i., the belief in the gpu, particularly back in that '09, 2010 period where their initial attempts to try to introduce parallel processing, jim, were met with resistance, significant resistance. >> there was resistance right until literally chatgpt. >> yeah. >> because i was out there to see jensen, not long -- right before that. and he was wondering when someone would adopt this thing. someone. >> and then explosion. listen, to be fair, before

chatgpt, this was still a giant, obviously, gaining -- i mean, there were still gpus being used for mining and bitcoin. so many things. >> but grace hopper, which is the most -- the fastest supe computer right now in the rld, it igoing to make it, is going to -- it learns. alone there's two eces here. there's software and there's hardware. and the reason why i think that nvidia cano higher still is because e software component is being dcounted. and it's 20 times 20 numbers. i mean, how can you not buy the fastest-growing company in the world that's 20 times 25 numbers? >> i don't know, jim. how can't you buthe faest growing company in t world with those kinds of numbers? >> larry ellison, another visionary, saw this coming. he bought a huge amount of chips and th's why his datacenters e being rented by everybody. it's one of the reass snowflake is doing so well. people want -- one of jensen's partners is frank slootman, who

runs snowflake, ansnowflake bought a lot. didn't like the price, by the way. there's a great contretemps between jens and frank. you can go to the vide >> one pla that's not getting those high-end chips, of course, is china, and that brings me to alibaba, because iwas downgraded today by morgan stley. thisad been one ofheir top picks. now it's just an equal weight and sharesf baba are down 10%. and they point to the cloud spend not haening and in part alibaba said it's not happening because we can't get access to the highest end chips we might need and they say from aalue unlocking perspective, tha creates uncertainty. they also cite a lack of capital management catalyswithout that cloud distribution as ongoing buybacdividend is already in the price. >> the chinese need -- they need everything nvidihas, and every single time, it seems the commerce department says, you can't have this, can't have this, can't have this, so they're sending the slowest --

>> five years from now, we're still not going to let them have today's chips, like as they advance? >> the late henry kissinger, who got not one single mention -- >> on our air. >> yeah. would te you this has change. hibrillit anysis at 10on we a on a collision course., graham allison, the graham allison view that there's going to be a collision, and -- between china and us. and henry said, it must end. i interviewed henry when i was in college. it went very pooy. >> did it? didn't go well? >> no, i asked him about the christmas bombing. >> he had a bigger brain than you, jim. >> i said, why did you bomb a hospital on christmas day? and he said, it brought th to the peace table. got him the nobel peace prize. >> all right, let's cut that off and move on to rick santel, because he's got manufacturing pmi for us. rick? >> yes, if we're looking athe

global mi, it remained at 49.4. what's notable here is that means nine out of 11 readings for this year have been under 50. what it also means is this is the lightest reading since july, and remains so, but even more important, you remember that 5.2 revision to third quarter gdp, and if you look back all the strength in u.s. economy? the diffusion indexes have been so fabelow 50 but hen't been good predictors of the economy overall. "squawk on the street" will turn after a short break.

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take a look at the week's biggest gainers on the s&p. >> ulta. >> we've talked a good deal about it. >> in the middle of all of this. salesforce. >> benioff loves you. did you get the text? >> i am hearing regularly from marc which i very much appreciate. >> felt hurt you thought he -- >> no. that was years ago. so far in the past. now marc and i are great. >> elliott -- >> elliott -- can't often go to so many of the great events. >> gm still on the buybacks. people wonder the short-term nature they question on the decision to have the accelerated buyback. it helped the stock a lot. >> a lot. >> we got stop trading with mr. cramer coming up next. siness. introducing watsonx a platform designed to multiply output by training ai with your data. when you watsonx your business, you can build ai to help coders codfaster, customer service respond quicker, and employees handle repetitive tasks in less time.

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i told her, “i'm here to take care of you.” connecting with kim... made me reconnect with my mom. it's very important to keep loved ones close. we know that creating memories with loved ones brings so much joy to your life. a family trip to the team usa training facility. i don't know how to thank you. i'm here to thank you. did i hear j&j? >> one of the under performers. this company, johnson & johnson. it's been an under performer because of talc. they are having -- >> talc, the concern about litigation around talc and asbestos ithe talc, which they continue. deny but the lawsuits >> if there's no win by the plaintiffs this deceer 5th analyst meeting might propel the stock. very good piece by ubs about why

you should buy it ahead of that. i would caution that i've studied the cases, and as much as j&j would like to tell you they have a winning hand, i think that talc is viewed as asbestos by juries and, therefore, j&j is viewed as jackpot. you have to be careful. and the bankruptcy ploy has not worked. >> right. >> but is it a great american company? oh, my. it's one of the best we ha. they're being hurt, more than 20% of their drugs would be part of this medicare clamp down part of the ira. they're under a lot of fire. that said, i don't think anyone thinks that j&j isn't a great company. >>, obviously, kenvue is over and done. >> i would rather be kendall

jenner. >> she's a powerful influencer. >> what do you got on the show tonight? >> iove the infrastructure story next year and one of the companies that's going to be integral to th is the letter j, jacobs. this is just a really driven company quarter wasn't that we're thinking about 202in infrastructure. bob is terrific. also huge eagle fan, huge game against the niners. who do you -- >> you win every game except against one team for some reason. i forget who that team was you lost to. have a great weekend. >> one word for you. >> what it? >> olaplex. >> shine. not so much. coming up -- >> shein it's pronounced. >> shein. the developments, of course, around the cybertruck, which is now for sale. you can see the stock dn isow this morning. keep it right here.

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good friday morning. welcome to another hour of "squawon the street." i'm sara een with david faber

today. we are live from post nine of the new york stock exchang carl has the morning off. stocks after blockbuster month of november, we kick it off in the green at least on the dow up 60 points. the s&p 500 little changed. the nasdaq under pressure. kind of what wsaw yesterday where tech under performed as the rally really has broadened out. take a look at treasuries after a huge rally during the month of november as well, which is a big partf the stock story. they continue to do so. the 10-year note yield 4.30, the 2-year yield at 4.65. you're getting a little strength in energy, industrials and materials, weakness in consumer and communation services and technology. 30 minutes into the trading session, here are movers we' watching. starting with ulta, shares are surging after reporting strong q3 results and raising the bottom end of its range for the full year sales and earnings expectations. stock is up 12%. shares of paramount on the move. "wall street journal" reporting the company is discussing bundling its streaming service

with apple tv plus at a discount. paramount shares down 13% this year. pfizer shares are sliding following the setbacks on the mpany's weight loss drug product. more details on that later this hour. >> we have economic data, though, that is justut let's get to rick santelli for it. >> yes, david. construcon spending for october expected to be up 0.3%, is double that up 0.6%. that is the best number just since august when it was up 1%. someing notable, though, this is much better thaexpected but there's a payback. last month was halved up 0.4% to up only 0.2%. ism manufacturing for november, 46.7, that's a miss. they're excting a number much closer to 48. 46.7 the lightest number back to july. and if we look at prices paid, which we want to go lower, of course, it moved in the wrong direction. 49.9.

it still is the eighth consecutive number under 50, which in this case is a good thing, but 49.9 actually is the highest number going back to the last time it was over 50 and that was in april. we look at employment. up 45.8. a big miss there, and we know that a week from today we get the employment report. 45.8, the weakest level since july as well. and finally if we look at new orders, 48.3, that's a bit better than we were expecting. looking for a number around 46.8. 48.3, that is the best number, well, since september when it was 49.. but here's the bad news. this is the 15th consecutive number in new orders below 50, meaning in contraction territory and it's very hard to square that with some of the stronger data that we've seen like the revision to gdp.

sara, back to you. >> all right. rick, altogether, markets kind of taking it as a bad news signal, which is why we're seeing the treasuries rally further, 10-year note yield below 4.3 and stocks rally because some bad news on the economy is not bad news for the market. and that's where we start the conversation. >> start there. >> quite a november. one of the best on records for the s&p 500. all driv by the rate relief. >> a lot of it, yeah. >> driven by rate relief, one of the best months for bonds we've seen. goldman sachs with a chart of e day, the trading note, on how much financial conditions eased in the month of november. they eased, it was the largest monthly easing in 40 years. looks ke a lot -- >> like an ekg. >> you can see a big drop down at the end and that's all that matters. what that is, is you have this simultaneous rally in stocks, rally in bonds, lloff in the

into better growth prospects, actually, and you can feel that in the real world. ju look at mortgage rates. what happened to mortgage rates? they're down for the fifth week in a row. the avage 30-year fixed down to 7.22, which still sounds high, but it's better. >> diana olick yesterday in answer to your question would say it is still high. >> still high. >> didn't seem to be sparking a great deal of recent activity. >> not yet. let's see. that makes a big difference. better than the more than 8% where we're. not as good as where we were a year ago in the 6 range. >> or two years ago. >> where you locked in your mortgage. >> i was lucky. >> if we continue to see this, that's friendly for growth and the question that everybody is asking this morning is, did the markets go too far or can we continue to rely on this sort of jewel story of growth being okay, soft landing, inflation coming down, and the fed starting to look to cut to normalize policy.

that's why powell today will be important. is he going to walk it back a little bit? >> you've had some recent comments from williams, from some others, the journal saying what you've been saying for some time, nobody wants to talk about cuts. >>p they're not going to say we're done. >> do you have expectations for what powell might do or more of the same if. >> usually powell he walks the line from what we've heard, which is i don't think he's going to be talking about rate cuts. i think that if asked he'll acknowledge the progress on inflation but say we're still not at target and see this through until we get to target and not precommit to doing anything because he doesn't need to. these are the last comments we're going to get to the fed before the blackout period. next week in quiet zone ahead of the december 13th meeting. i'm not sure he's going to move the market one way or the other because the market is now expecting -- >> no more rate hikes for sure. >> and cuts starting in may. that inflation -- we are seeing some pretty substantial progress with inflation.

if you look at some of the three-month and six-month annualized numbers on the pce and core pce that we got yesterday, they're good. they're moving back down to low 3s. even -- getting close to 2s. that's good. there's a little bit of services inflation and some of it is in places like hospital and nursing services, you know, and that's what they say, does the fed need to fight that more? the market is coming to grips with the view that the fed has certainly done a lot of work. we heard from treasury secretary yellen yesterday, touring a factory, speaking about the economy and she's been, you know, very much on the soft landing camp. not a surprise. she's, obviously, the treasury secretary. here's what she says. i believe the signs are very good that we will achieve the soft landing with unemployment stabilizing more or less where we are in the general vicinity and growth slowing to a sustainable level. i think that's what we're in the middle of. that's been the story. >> signs are very good. what is she pointing to as the

signs? >> if you look at unemployment. first of all jobless claims are a little bit more elevated, but they're not spiking. you're not seeing mass stress in the consumer or in the job market and that's what defines a recession. one of the biggest questions of 2024 is, does the consumer have a soft landing? we've had a ton of excess savings that are running out. what happens then? we've had this inflation shock and this rate shock. or can we get away with this sort of low growth, moderating growth, at a time where inflation comes back down? so far the market is telling you yeah, sure. did you see the ulta commentarily? >> i did. we were discussing it when they referred actually to the current moment in the call that is what got the stock going. >> consumer spend has remained healthy. >> yep. >> we expect growth will normalize to historic ranges we remain confident the category will continue to grow barring a macro economic event.

it's been so hard to tell. we spent everything on home goods and electronics when locked up in covid and then spent everything on services and taylor swift tickets and travel when we came out and restaurants, and now it's like we're in the normal and nobody knows. is it a normal that's not recessionary or is it back to a muddling through for 2024? >> we'll need be discussing this for some period of time i would assume. >> for sure. also when we discuss auction. another sort of under appreciated risk for 2024, right? >> that may be the case. let's not talk about it for a long time. >> i don't know. january.cuses are like in it was a november to remember. s&p and nasdaq posting their best month officially since the summer of last year. dow ving the best month sie october 2022. let's look ahead to the final month of the year and beyond. joining us citigroup scott crowners, year-end target of

4600. mid-2024 target of 5,000. what's your -- so what your feeling about all of this going into 2024? you heard r conversation. >> yeah. i think u guys are spot-on, sara. i think we still are focused on the fed for good reason, right, in terms of an indicator of where they're taking policy, which is still quite restrictive by their definition for what it's worth, but, you know, our focus has been on 10-year nominalsor some time now, and that move towards 5% in e july timeframe when we re 4%, really did add a number of areas of angst to investor confidence psyche regarding the outlook. with the rate rally, since mid-october, you really have had a release valve at wk in the markets that has benefitted everything from tech, but also those areas of the market that were most concerning relative to a higher for longer rate regime such as real estate which has led over the past month or so. the broadening effect on the

back of interest rate relief, cannot be ignored. it's something that we've been talking about and have been playing to relive to our earnings outlookor next year and we still think it's very much in place. >> so here's one question, just how big the noveer rally is. you can't really point to technical factors like sentiment anyme. i mean the aaii investor survey shows they're the fewest i think back to 2018 right now, and some of the seasonal factors, all the favorable positioning stf that people said would lead to a year-e rally, have we done all that in november because it was so big? is that headwind now? >> any time you put a 10% move on the s&p you have to allowor it to digest that move. to your point is very major gain. look, we're at 4600 for the end of the yr and we feel pretty comfortable that we' muddle through the next mon. obviously, we're going to be laser focused on crin mental macro data points that are going to confirm or not the deceleration in inflation.

we're going to keean eye on ten-year nominals. you don't want to see them backing up from here. that would be a short-term cause for concern. our playbook going into 2024 is unchanged. it's prem nissed on a broadening from an earnings growth perspective and we think that's in place next year. color us bullish in terms of the s&p outlook headed into 2024. >> i- do you not worry at all about margin pressure in a disinflaonary environment? i'm thinking about kroger yesterday. when prices were high, these companies did well from a profitability standpoint, so i know it's good for the market if inflation comes down, but is it really good for corporate earnings? >> yeah. it's going to be a mixed bag we've been talking about margin pressure concerns for the second half of '23 since last february actually, and so wknow what's out there and what's out there is an issue and higher inflation and buoyed revenues.

we like to remind that the s&p 500 earnings picture is really interesting. it is t as correlated to gdp trends as you would think, okay, real gdp trends. however, nominaldp has a very high crelation to the s&p 500 sales, so the int here is that we have to allow for this inflation deceleration dynamic to play out a couple ways. yes, you're going to have steep pressure on pricing. that's to be expected as you run through this normalization on the heels of the post-pandemic rally and supply chain constraints, but we also have to allow that you're going to see relief on input costs. the picture goininto 2024, i ink it's going to become company and sector specific terms of this margin pressure concern. it's certainly an issue, but one that we're not seeing any real signs it's going to ally impact our full-year, you know, earnings growth objectives for the s&p.

>> quickly because david didn't want to bring it up, do you think that the election is a risk for the market next year? >> you know, we wrote a piece a few weeks back on things that keep me up at night, and things that keep me up at night still are the longer term budget situation and i do think as we get closer to the election, we're going to be looking at this higher for longer rate regime and thinking about how to finance the deficit and i think that's all going to become a talking point closer to the election. we'll cross that bridge when we get to it, to your point earlier, but we still think that there's some longer term implications on the other side of that, that pertain to how we think about fiscal accommodation relative to a potential shift towards more fiscal restraint and that's going to be something that we're going to have to keep a focus on going into the end of next year. >> trade, geopolitics, they're all kind of hanging in the balance this time. thank you ott. citigrouchief u.s. equity stragist. as we lead to break our road map for the rest of the hour

including dollar doldrums. coming off its worst monthly performance of the yea the u.s. dollar. the stocks that are exposed the most. > shares of pfizer are under pressure this morning following disappointing data on its weight loss drug. we'll talk about the fallout. the street's take on tesla's cybertruck. it's bulletproof. up 95% this year. big show still on "squawk on the street." dow is higher. s&p 500 been between plus and minus as tech lags. some of the cyclical stocks are doing well. don't go anywhere.

first time i connected with kim, she told me that her husband had passed. and that he took care of all of the internet connected devices in the home. i told her, “i'm here to take care of you.” connecting with kim... made me reconnect with my mom. it's very important to keep loved ones close. we know that creating memories with loved ones brings so much joy to your life. a family trip to the team usa training facility. i don't know how to thank you. i'm here to thank you.

shares of tesla are under pressure a day after the company's cybertruck delivery ev event. phil lebeau has the highlights and street reaction so far. >> i think the street reaction is what everybody was expecting in terms of how wall street would look at the cybertruck. it's a niche vehicle, polarizing vehicle, but that's the whole idea here. nobody expects this to move the needle not at the prices they're charging. the trimotor, $100,000, the and the all-wheel drives are the only ones delivered in the rest of this year and into '24 and the rear while drive will start at 61,000. you can't get those until 2025. if you had to summarize the analyst commentary regarding the cybertruck deliveries and pricing and what to expect, almost everybody says the same

things, these are pricier than expected. nobody thought they would come in at 39 which what is elon said. yeah, right, that's not going to happen nor is that the case in terms of the base price. analysts say this is not going to be a profitable truck, at least until 2025. volumes are too low. it just -- the rate where they're coming in, you won't see them break even on this for a while. the halo effect, though, it is substantial. there's no doubt this has succeeded in if you want to say getting people to talk about tesla again. nobody was talking about the model 3 and model y in terms of wow, have you seen that driving down the street. certainly we're talking about it in terms of being the ev that is most popular right now with the model 3 and y. they will be the bulk of the deliveries as you take a look at tesla's deliveries and what's expected this year. 1.8 million the company's guidance. we're getting analyst system for '24, generally speaking, about 2.1 million. that's what they're expecting.

by the way, do not expect the cybertruck to make up a substantial part of those deliveries. it's still going to be ramping in production. as you take a look at shares of tesla the fact that we're seeing the stock move lower i don't think that's a reflex on the delivery event. this is what we see with tesla leading up to the milestone events. you see the stock continually move higher, move higher, then see it and not a huge surprise, and then the stock may pull back a little. >> yeah. phil, that number you shared in terms of where analysts are for next year in terms of sales, the percentage increase over this year, that's -- i mean i get the law of large numbers, but that's not that much. >> well, remember, and they said they would plus or minus, some years less than 50%, some years a little bit more n terms of their production which you can extrapolate what's going to happen with deliveries. that's the question. are we now to a point, given the size of tesla, that we're going

to see them not be able to achieve 50% production and deliveries? keep in mind, david, you and i have talked about this before f they can come out with the lower price model built in mexico that changes the equation. we're still a ways from that happening. >> yeah. phil, thank you. phil lebeau. let's continue this conversation with oppenheimer's analyst colin rush who has a hold on the stock. you heard what phil talked about. give me your reflections on the cybertruck but as we head into the new year, in terms of what you think the demand will look like for tesla's automobiles overall? >> yeah. i think phil's take on this is generally in line with our view. first, the company really needs to evolve the product portfolio. they've established a very strong foothold in the vehicle market, and to grow further here, we really think they need to evolve the product portfolio. totally in agreement with that. i think there was some nice technology validation in this

vehicle from the torque and some of the power trane elements and steering capacity. that's n a new technology but having it integrated enables the autonomous applications do the line. the company is at a crossroads here. you know, disrupted the industry, forced the industry to move towards a certain technology node and now driving that incremental share towards something that we think investors are anticipating is something on the order of 15 to 20% market share, really is going to involve an awful loof hard work and we're on the sidelines here that this is going to be harder foronger than a lot of folks expect and 're expecting margins and growth to be muted here over the next couple years. >> yeah. well, u know, against, of course, this backdrop, at least, of what seems to be slowing demand or growth, certainly, for evs, you know, the other day andrew sorkin, of course, talked to elon, i mean, i'm not sure it was necessarily asked and

answered, but it didn't really get answered, certainly, this question whether there is a significant slowdown. do you bieve there is in terms of just what's left of the population wanting evs? >> so, i think there's a misconception here growth in both chi and europe has been strong for evs and there's a strong north american bias for a lot of investors in the reporting here and i think the u.s. market has a product market fit issue the oems are working through. the slower growth evs in the u.s. is not a huge surprise given where the appete and interest and real needs for consumers are in this cotry. evs, we're not, you ow, backing away from our bullish growth perspective. we think it's coming from different geographies. product portfolio will take f time. we're on gen 2 plus in terms of the vehicles on the road and i think gen when you go through disruptive cycle it's where

products getight with the market and drive volume. we're in process on the gen 3 vehicles here. >> understood. again, back to overall worldwide demand, you point oueurope, a lot of chinese evs if i'm not mistaken, and in china musk has said it is an incredibly competitive market, is it not? >> i think both those points are well taken here,nd that's part of our concerns aroundargin. tesla continues to be a real technology leader in driving costs out of these vehicles from a design and manufacturing perspective, but this is going to be a very competitive mart and it's going to be, you kn, a challenging line market. we have real concerns are around some of the legacy oems and tesla is a long-term winner here, but the path to long-term winning in this rket is going to be painful and we're seeing that in the financial results. colin, going to leave it there for today. thank you. >> thank you. when we come back, pfizer shares halting trial of its side effects.because of adverse what that means for the company now, as well as the other major

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shares of pfizer are down almost 6% following new data on the company's experimental weight loss drug. it is actually an oral formulation. angelica peoples joins us to talk through the fallout. pfizer can't get a break in terms of its stock. but this isn't an oral entry that i guess wasn't tolerated well by the population in the trial, was it? >> exactly, david. we are seeing pfizer discontinuing development of this twice a day pill because people had such a hard time tolerating it. we know that people have side effects with these drugs, things like nausea, vomiting, diarrhea, but pfizer were saying the rates were too high. they saw across all the different doses here that more than 50% of the people were dropping out of this trial, and that's unacceptable in this particularly competitive space. >> this is a glp-1. what's the difference in terms of the science then?

you know, i don't know that you can answer that, but in terms of what they've got versus what mounjaro is and/or what wegovy represents as well? i know they're taking it in a different way. >> yeah. so the distinguishing factor here, of course, is that it's a pill. this is a twice a day pill, though, and that was something that analysts were already a little skeptical of because you're asking someone to take this two times a day versus an injection, which is only once a week. of course, not everyone likes an injection, but twice a day is a lot and so pfizer was looking at once day formulation and they are still going to study that and see what happens and the results of that will inform what they do next. this is clearly a setback for pfizer. >> what about for those hoping that these drugs go in pill form? are the other companies working on it? >> yeah. so lilly, they have their own pill that's in phase 3 and that was why this data was so important to help pfizer catch up to lilly, but it seems that that's not going to happen.

we also have some other companies, particularly smaller biotechs like structure therapeutics, also working in the oral formulation, so pills are still a really hot area and it could be an opening for some of these other hopefuls. pfizer has to see what happens next with the once a day formulation. >> i did knit as well the weight loss, average weight loss from the patient population on this seemed to be far less than what mounjaro, for example, or eli lilly has reported with mounjaro. is that the case? >> yeah. so pfizer was saying that on average people saw about 8 to 13% weight loss, and that was less than analysts were looking for. they were looking for somewhere closer to the mid teens. that would put it on pace with lilly's experimental pill. of course, you know, you're talking about something here where you're not getting as much weight loss, and you have the high rates of side effects, and that's not competitive right now. >> yeah.

angelica, thank you for breaking 8 to 13% weight loss sous like a lot. the high with mounjaro was 22% i believe. >> unbelievable. l right. thank you. time now for a news update. let's get to bertha coombs for the latest. hi, bertha. >> hi, sara. the israel-hamas cease-fire ended this morning and israel has resumed air strikes. during the seven-day truce, more than 100 hostages and 240 palestinian held in israel were released. thisraeli military is urging residents to evacuate signaling imminent assault in that region. the white house is working on a new cease-fire between the parties. the house of reprentatives is voting right now on the expulsion of congressman george santos. if ousted santos would be the only the third lawmaker since the civil war to be expelled. the vote comes after the house

ethics committee reased a damming report that found santos used campaign donations for his own personal gain. and sandra day o'connor made history as the first woman to serve on the supreme court has died. o'connor was nominated to the court in 1981 by president ronald reagan and served nearly 25 years before retiring in 2006. according to the high court, she died of complications related to advanced dementia and respiratory illness. in a statement chief justice roberts wrote that o'connor blazed a historic trail. she was 93 years old. we don't think about the fact that we now have three women on the court, sara. she did blaze that trail. >> yeah. absolutely. that's a record. thank you very much, bertha. still ahead, major indices are coming off their best monthly performance of 2023 as fed chair powell gets ready to speak at the top of the hour. we'll tell you what to expect afr quk eatea icbrk. developers will have to write code.

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fed chair powell getting ready to speak in about 30 minutes. they bet the f will hold rates steady and begin cutting next year. joining us morgan stanley chief global economist seth carpenter. do you expect anything to move the markets from powell today? >> it's hard to say for sure. our baseline view is that the first rate cut comes in june. we heard conversations, communications earlier in the week, the market reacted to what governor waller said and i don't think it was the reaction they were looking for. he was trying to talk generally about what's going on and that's always the risk when fed officials speak, particularly when it's chair powell. i think he's going to try to say they're committed to 2%, they're going to sort of assess it as it comes in. there's always the chance it gets a little bit -- he's going to try not to sound overly dovish. >> it's hard to sound hawkish,

because the data is pointing him in the dovish direction, and that's the challenge? >> i think that's right. they have clearly come off of that sort of bias towards more and more hikes. that's been our call for a while. the market has priced that in now. it's going to be hard to lean too much. on the other hand, the point we tried to make for a long time, it's going to be a long road to get all the way back to 2% inflation. we're not there yet, although things are moving in the right direction. they tend to want to see the data coming before they commit themselves to anything. we have to remember that this hiking cycle, there have been a couple times where they have first said transitory inflation and second said that 175 would be unusual and they did a string of them. i think he wants to be cautious before committing to anything before they know where they're going. >> do you worry about the little flairs of inflation that we get in the data? even in softer data like ism, prices paid, was a little bit firmer.

i think rick said the highest since april, though still below 50. the expectations and consumer sentiment data on inflation had been a little more elevated than comfortable? should the market get a little more concerned about that or no? >> i mean, i think this is -- we're in a very unusual time. the cycle is very different from other cycles, and so you have to take in all of the data to parse the signal. nothing so far has really moved me from our fundamental view, though. if you think about the three biggest parts of inflation for the u.s., you have consumer goods and those prices are still elevated in levels terms. we've seen those having negative change on that over the past few months. i see that continuing. similarly for housing, we know that rents have stopped going up as quickly and many cities have started to come down. the low frequency underlying trend does seem to be going in the right direction, but you have to take all the signals, pile your way through the details of the data to see if there's anything there. for now i feel really good about our forecasts that inflation is

going to keep coming down. >> really quickly, we're going to get a jobs report and another cpi report before the december 13th meeting, right? they will be in quiet period. do you expect either to move the needle? >> i don't. it's going to be tricky and, obviously, when the data fall into the time where they're not able to talk about it as clearly or publicly, it makes the messaging hard. the non-farm payrolls report a week from today will be tricky because you have to separate out how much of the rebound is coming from the end of the strikes that we saw, and that's going to make the headline number look stronger. dig into the detail, we think it's a modest further deceleration. for cpi, again, i mean i think the major trends in the data really do point to continued falls in inflation. we think that's what happens for cpi this mornnth but there's always a chance of a curveball. the fed would be ill-advised to react to one data point and it would be hard to see what would

happen for these two data points to move the needle enough to change the mind about the december meeting. >> they could change the tone a little bit, i guess, of the meeting. thank you very much for joining us. got to leave it there. change conference is under way in dubai, and there are big money deals already being made. our diana olick is tracking all of that fous. diana? >> well, david, representatives from nearly 200 governments are at cop now tryinto ramp up their response to climate change, and that, of course, comes in the form of more money and that's why reps from corporations, big banks, investment funds are there too trying to get in on all that cash. opportunities in the clean energy transition, infrastructure, climate tech and resilience. i spoke with the executive director of bill gates' breakthrough energy in dubai now about that. >> it's an opportunity to connect companies with finance partners and industry partners and we're looking to make deals to accelerate clean energy into

the marketplace. >> and, in fact, just this morning, breakthrough announced an investment of just over a quarter of a billion dollars with the european investment bank for its first two european projects. one is funding danish energy company orsted ethanol production facility to provide green fuel for the shipping industry. >> that's what we're hoping for from this cop, is that it will be a real opportunity for the private sector to take a step forward together towards addressing this incredibly challenging, but important topic. >> also this morning, the cop leadership, the uae, launched a new $30 billion climate focused investment vehicle which will be the world's largest private investment fund for climate. it aims to mobilize $250 billion globally by 2030 and just a note, i will be on the ground monday in dubai covering all of this for you next week. david? >> good. i was wondering. i was like is she there now or

going? now i know the answer. diana, thank you. as we head to break, check out the biggest winners on the nasdaq 100 for the week. we've talked about this, the owner of temu, had a great week with blowout earnings and revenues. see workday. jim talked a great deal about that of late. and crowdstrike with palo alto networks and cyber security certainly doing very well overall. we're back. no. let's get to jane wells live from usa been, texas. yeah. hi, jane. almost forget about you. return to office really being felt. never forget about you, jane. >> well you can't. i'm not here all the time. great to be here today. everybody has moved to austin and loves austin except in august. why are people moving out? is it a ip oblr a trend? we'll have that when we come back.

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want to take a look at some

of the ai-related stocks. look at elastic. that's a company, let me tell you what they do. cloud-based ai powered solutions for enterprise security, observibility and search built on what they say is their platform. the important part ai powered. you can see uipath in the automation business, say they're a beneficiary of generative ai as well. the stocks are soaring. elastic better than expected earnings which seems to have set off and uipath set off a rally. we're talking significant additions of market value. these are not tiny companies. over 10. 4 billion and elastic wanted to mention that. >> ones we don't talk about that often or maybe we should be more. after years of new arrivals, one major city in texas is seeing the return to office trend hit reverse. jane wells is live on the scene with that story, hi, jane. >> hi, sara.

keep austin weird is becoming keep austin crowded, especially during the pandemic as californians move to texas in droves for a variety of reasons. the famous one being elon musk who was here yesterday delivering the first cybertrucks at the giga facty. musk left california two years ago in a huff. yet, when he opened a new tesla global engineering hub this year was back in california. is this the beginning of a trend? well, look, redfin reports for the first time more people are leaving austin than arriving and the median home price down 3%, though still notheap. some are due to return to work miss california, despite the few taxes. the head of the austin technology council think that may be because they came during covid and didn't put down roots. >> many people came and we were on lockdown, they didn't make friends. if you move to town and were living in your apartment for a year, it was really hard to sort

of conct. >> okay. let'be clear, there are still more people moving from california to texas than the other way around, but the census bure rhas new data that says the gap is narrowing and last year california welcomed more texans than any otr newcombers from any other states. i'm trying to watch the return to work trends, from t.d. cou when, looking at open table reservations data and,uote, at the end of the third quarter states such as california an north carolina remain above 2019 levels while demand in texas and florida appear to be cooling from '22ighs. make of that what yowill. >> you know, jane, when you get an influx, it can stress a lot of thing including i know a couple of people who moved out not necessarily out of texas, maybe to dallas, because of the schools, for examp. you know, when you've got kids and things are getting overcrowd.

it's also a lot of californian came here and drovup home prices and so some of the people leaving, you're correct, aren't leaving texas. they may not be leaving austin, but moving further out. there are texans going bk to california and what data doesn't tell us, if they are californians returning or brand new residents. we just know there are more going that way now that there were the year before. >> interesting reversal. thank you, jane. jane wells. good to see you in austin. coming up at the top of the hour, fed chair, jay powell, to sit down in atlanta for a conversation. we'll tell you what to expect as we enter the lasint adg month of 2023 after a monster rally in november. back in two. it anymore. my kids are grown, my wife is great, let's settle up the score. it's time to travel to paree, spendetiremt happy. call 877-sell-easy.

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the u.s. dollar coming off its worsmolly performance of the year. taking a look at what ocks are most iacted. it's l abouthose ocks and coanies that earn their money outside thu.s. those dollars or foreign t rrencyack in u.s. dollars, cheaper dollar gets you mo dollars and prits. if you take look athat dollar index move, you menoned

that 3% decline we've seve the cose of the st month th's a lot in termof curren terms. if you take a look at stocks most affected, consumenames the s&p 500 that get a lot of their money outside the u.s. are the ones affected the most. according to data compil by ldman sachs and david sen and his team, among the mpanieout there that get their money ouide the u.s., estelauder gets % of revenues i22, this last scal year, in terms oforeign rrency aets. those shares you can see have moved littleigher the upside. one faor mighte the value of the decling u.s. model. another compy to watch out for on the consumer side is mondelez, 84% came from outside the u.s. shares getting a bid, helped in part by a weakening u.s. dollar. of course, the largest stock of them out there, conser company, technology, the biggest stock in the s&p and the world, apple shares up about 0.25%

today. so keep an eye on mega cap technology names and the big consumer ones. back over to you. >> very important, dom. thank you very much. the dollar going to continue to weaken from here? >> will the dollar continue to weaken >> i don't know. here is something to consider. so, whilthe dollar is weakening on the back of lower treasury yields and falling inflion pricesr disinflation, it's happening to our biggest trading partners, too. i made a special chart for y on this of u.s. inflation versus european inflation. they had a problem, too. guess what. they're both coming down. and, in fact, the eurozone one is the orange line, which is coming down a little bit further in terms of leve that's just headline numbers. now the question is, who's going to cut first? b or the federal reserve? according to the markets at this point, it's the ecb. they're pricing in the fed cuts

in april. the thinking is the ecomy is weaker in europe than in the u.s. and they might be forced to cut. inflation.eing progress of the bottom line is that means the dollar could strengthen from here. tting equals weakening currency. if everybody is shifting to cutting, it's who's cutting and whose economy will get hurt worse? might go the other way. >> the economy overall has grown so much less than the u.s. over the last 15 years. >> absolutely. >> scking. >> it has. they've also been slower to raise rates. they've been slower to trim their balance sheet. they're following the u.s. on that front. >> yeah. >> could keep the euro weak my moint. >> let's check in on the broader

markets. bring in bob pisani. we are set to hear from fed chair powell at the top of the hour. good morning. >> good morning. i've been making fun of the strategists this week, all having their price targets for 2024 out. a lot of them are very bullish. 5,000, 5100, 10% moves in the s&p. it's hard to argue against their bullishness in the near term. not only is the seasonal back drop strong, but the macro back drop is very strong. for once there's good reason for them to feel reasonably bullish. on the seasonal back drop, november was the best month and it lived up to that reputation by far. preelection decembers are exceptionally strong. they're up on average 2.9%. that is twice the performance of a normal december which is itself bullish. the seasonal back drop is strong. the macro back drop is strong. lower rates, inflation has been

moderating, we've been getting solid gdp growth. this is what you call goldilocks, the closest you can get. if you want issues, the longer for higher is an issue. i see the odds of a rate cut by march, 45%. it was 20% a month ago. powell is going to push back against that for sure. you also have valuation issues. now we're 19 times '24 numbers. 17 times is an average number historically. when you get to 19 to 20, it's very hard to sustain the market at those kinds of levels. usually prices drop or earnings have to come up. we need more information to keep the market going. goldilocks is priced into the market. i like what ulta had to say. same store sales guidance, 5%, 5.5%, that's on the high end, good news. salesforce was really good yesterday, guys. we'll see. i think powell will push back against the whole idea of a rate cut any time soon.

>> i agree. >> sara would agree with that. bob, thank you. great weekend to you and all of our viewers. that does it for me. but we have another great hour "ua othstet." when you think of investment risk, do you consider climate risk? changing weather patterns e impacting the way we live and the value of businesses large a small this c mean disrupti to supply chains, changing demand for products d shifting regulation. what does this mean for your business, your clients, and your investments? ice offers data and maets that can provide iticalnsight. manage your climate risk with ice. all right, shea, are you throwing a dress like a dad party, a birthday brunch, or a vow newal for your dogs? yes! the right drinks delivered for any pay. drizly. (christmas music) ( ♪♪ )

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let's take a look at the markets as we get started with this hour. the s&p 500 basically at the flat line. thdow, which is at a new 52-week high, above the 36,000 mark. up just fractionly. nasdaq is down about onehird of 1%. breakingews this hour. powe. get headlines from chair let's make sure we he those here. jerome powell participating at a fireside chat at spellman college in georgia. o soon to speculate when the fed will cut rates. those are two of the big