>> let's get ainal check on the markets before we hand things over. futures are still in the green dow futures up by 73 s&p futures up by 8, nasdaup by 20. this does it fors today, but we'll be back here tomorrow. >> oh, please. flo, no! please i'm begging you. >> anywhere is good. we're still here. >> anywhere above ground is good. >> that is correct we'll e you tomorrow right now it's time for "squawk on the street. ♪ good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber fed officials pushing back on the notion of multiple rate cuts our roadmap begins with records watch. s&p up about a percent below the

record close the dow and nasdaq riding eight-day winds we're keeping an eye on the red sea risks given the attacks on commercial ships. how about that corporate cyber challenge? not talking about a race here. talking about companies such as vf corp and even comcast xfinity saying they have seen significant hacking that's disrupting parts of business let's begin with the markets this morning a lot of push and pull here, jim. the fed pivot, of course, has filled the tank, but overpositioning now, the idea that maybe we're severely overbought. >> at least on the s&p os later i follow, it's still been plus five for as. it's very bullish, which is we can't em to give up the ght. that said, when i looked at a lot of the charts that people call in on for "mad dash,"

almost every one was at a high i was quite reluctant. you have power block move over and over and over for companies that are just okay, it makes you concerned that what's going take them further animal spirits, revaluation based on multiple expansion? we don't like that. >> i guess we don't, but do you feel like it's moved into the realm of bubble territory in any way. it's not reminiscent of what we saw in '21. >> not at all. the companies that are going up are good companies, ten to be russell companies that have been left behind. >> but you're questioning, what, the valuation at this point given the growth rate? >> i'm just questioning -- let me be more specific. when i see it, i say maybe you ought to wait until 5 to 8% pullback because it seems unsustainable to me. that logic, carl, is not welcome

along the people who own these stocks >> well, maybe they're pointing to the almost $6 trillion in money markets and this idea that households are not going to sit back and watch stocks rally without making -- fomo is going to take place. >> yes when you look at the companies that are being bought, they're all good companies and they've all been left behind but what i worry about is, let's say you come in in 2024 and, david, you haven't taken profits because you didn't want to pay taxes. well, as soon as we get to 2024, maybe that's when these people will say, okay, look, i know there's fomo, but i also would like to take something off the table. it's not all craziness i think the people who say i

have a good win, i'm going to take something. >> it's not as though there are not still risks out there that would potentially result in stock prices going down, even though it feels like it's been a little while since we saw that. >> we have a very big issuance of ten-year paper in t first quarter. >> we do. >> we seem to think the only thing that matters is the fed, then we get gobsmacked by a lot of treasuries that i don't know where we're going to put them. >> treasuries, don't forget, still risk it is still gnificant, the red sea stuff we've been talng about is a small example things can change quickly. >> right, right. it's an election year. when i look at what different agencies are saying, i don't get has changed his viewsident biden i think he can say, wait a second, they have the run of the joint, let's figure out how to get some of that money in thandz of people who don't make a l.

>> getting back to what we last saw in '08 the fake is they're done buying discretionary apparel footwear, leading them into appliances and things like that a look at a bigger chunk of your dpi is going to interest. >> david, there's a way to deal with that if we have 58% of people owning stock, let's just cash some stock in i don't think that's unusual i think it's unusual to have any sort of individual say, hey, that's tough. >> but to carl's poi, there is an oufl lot of money in money rkets. while there are enty of people who come in and say the bulk will go into fixed income, given

a ten-year probably only going down in yield over the course of the year, a lot of it will end up in the stock market as well, particularly if rates head lower, jim isn't that a distinct possibility? while you may say sell, there may be a lot of buying power behind that. >> there very well could be. how about this i'm used to the idea that, if you have a move that's bn straight up for seven weeks, it might not be a bad idea to say, you know what? i don't want to give that back maybe that's gotten out of fashion, but maybe it never goes out of fashion and these people are all saying, hey, someone is going to take me at a higher price. i don't like that. i have a lecture i give and i say don't want to rely on people saying, you know what i'm not getting out because more money is coming in i want to rely on price-to-earnings ratios that has become, and i say this at the top of my talk, that's

become out of fashion. >> old school cramer had a rule that a 20% gain gave you the right to ring the register if you wanted >> i'm doing that for the club >> you are >> let's say broadcom. broadcom had a 20% gain in two weeks. >> 20% gain in two weeks >> yeah. >> wow i didn't notice that >> it's regarded as being something in excess. maybe even hock tan wants to keep buying it i'm happy with the gain. i'm very happy. >> you're right. this is a $535 billion market cap company. >> and it has ai. >> one of the biggest companies -- 12 probably >> i recognize that i am in the vast minority of people who say, you know what? let's take something off the table. but i'm not going to change my

philosophy just because there's money on the sidelines because i've seen that money grow at times. maybe the 58% isn't even as high given the fact that you can get 5% you know what? so it makes a little bit more without me what's the matter with that? do i have to call -- do i have to be in there at the exact top? >> that is a perfect example of what we're talking about a great company, completed the vmware deal, soared 20% in a month. you're saying, okay, take a break. >> when does it happen only when we come in to a new year red hot, and suddenly there are people who said, you know what -- >> you have momentum momentum goes a long way. >> yes but i don't want to -- fomo is multiple expansion i want earnings higher i would like broadcom to raise

numbers. >> interestingly on a related note, the goldman desk was trying to figure out why is nvidia down 1.5 this morning >> two things. one people think that amd as a competitor is better amd doesn't have the software learning component they would tell you that the other thing is despite what raimundo said, people feel there's an antipathy because they make dumb-down shifts for china. i think commerce said they would revise it. commerce said they wouldn't. i don't think commerce is capricious >> the sox is up 63% year-to-date. >> you were milwaukeeing about micron yesterday, a very goodyear, despite a lot of ups

and downs, we can remember not particularly great responses to earnings micro shares, you can see it right there. micro is very similar. >> okay. so, again, i want to point out there are times in my career where i don't want to participate that much and am willing to take something off the table because i am concerned that i'm making too much money and the multiples are too high now, that would make me look foolish. maybe the people in the investment club will say what a fool he just took gigantic profits. that h never defined fool in my career. that stupid cramer he just took a giganticgain what a bozo. that tends not to be in anybody's lexicon. >> what would icon say about selling netflix.

>> or apple. >> he's held on to both of those, he would be one of the richest guys in the world. >> if warren buffett -- apple and nvidia are the two stocks i say own them, don't trade them everything else -- i've sold some alphabet because i'm worried about some of these antitrust cases, not this one, but also because google cloud faltered my base on alphabet is so low that, david, ilook and say wha a crime that would be if i gave back that big gain all of this seems so counterintuitive except it's been correct since 1979 when i first got in i didn't go to college to get poor. >> no. you were around for that home

depot ipo in '96. >> yes, i was. not that there's any plaque in that desert for me they yelled at me because i poached. i wasn't supposed to go out west i got crushed for bringing in the single biggest piece of business they ever had, and i was mortified and i had togive it back and pay for my transit. >> really? that was the reward you got for overstepping i thought it was all team there. team, team >> david, there's an i in team >> when we come back this morning, some signs of tough times ahead for the office market going into 2024 we'll talk about some commercial real estate. take a look at the premarket here we are hanging on, going for not just nine straight days, but also eight straight weeks up for the s&p. we'll get to adobe, amgen, pfer, pepsi, chewyn a minute

loving this pay bump in our allowance. wonder where mom and dad got the extra money? maybe they won the lottery? maybe they inherited a fortune? maybe buried treasure? maybe it fell off a truck? maybe they heard that xfinity customers can save hundreds when they buy one unlimted line and get one free. now i can buy that electric scooter! i'm starting a private-equity fund that specializes in midcap. you do you. visit xfinitymobile.com today. cybersecurity is in the spotlight. our parent company comcast disclosing suspicious activity during a routine cybersecurity exercise on october 25th and said it has notified federal law enforcement and started an investigation. they add it was due to a sit trick software vnerability and been resolved.elated risk has

last night on "mad money," the ceo of palo alto >> i think it's just beginning i think we'll see more and more of this activity come 2024 you'll see more and more conversation around it like i said, it's still the most profitable business with the least amount of convictions in e world. we haven't done anything to significantly impact the bad actors and try to fix this problem. we just have to make sure we're safer and more secure inach of our companies. >> look, here is what he's seeing right now he's seeing something that i can't -- i'm going to give you an anecdote. says if you don't notify the sein four days, the bad guys call the sec and say, listen, we did this you've got to know these guys aren't telling the truth

he said that's how confident they are also, unless you have a big database like he has for ai, you can't spot the change. here is what's most frightening, a lot ofhese are to build a profile on you if they find you everywhere, they find your passwords, they find your kids, they find where you were born, they find your mother maiden name, and then they kw that you are exactly the person that they think. >> you're done. >> wire me $2,728. >> not to mention what ai, as it ai will be able to accomplish ve and do on a regular basis. i think we should define or at least make a distinction between the -- for example, the xfinity breach where you're talking about personal information we've all gotten these letters at this point. >> a form letter. >> your personal information may

have been breached as opposed to what we're seeing more often now as well, though, jim, is breaches that actually affect the operations of the company. we talked about this yesterday with vf where they're having trouble filling orders i'll take you back to dish in february where attackers extracted data from i.t. systems that said customers couldn't pay bills or access accounts you had the clorox situation in august where their fiscal first -- their net sales decread by 23 to 28% because they basically had huge order processing delays, again, because of a hack. mgm, where they had to go to literally writing things down in terms of getting people into their rooms and mang reservations and doing everything else. and then, obviously, estee lauder as well operational where you've got the hackers coming in and saying systems unless you pay us,.t.

ununless you give us ransom. >> the world'sargest database, then you can spot realtime what someone is doing that is not right, but that you have to install that software and have to bring, yes -- of course it's self-serving, palo alto in he says this won't happen. it will not happen he says there are plenty of outfits that think, they, you know what? we don't have to worry because we're not really vulnerable, but they are. >> is th your favorite name in cyber? >> by far. second would bcrowdstrike. i think they do a very good job. but nikesh has the largest base of iormation of what's normal so you can immediately flag what's not, call the company it has to be instant it has to be that second or else it's too late. >> it does make you worry a bit

about what's in store for us next year and the year after that and after that. >> you just have to hope they're more interested in david's information than mine. you don't have to outrace a bear i've just got to outration you when we come back, cramer's mad dash, countdown to the openg bell more "squawk on the street" when we come back plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪) ( ♪ ♪ )

( ♪ ♪ ) ♪ (when the day that) ♪ ♪ (lies ahead of me) ♪ ♪ ( seems impossible to face) ♪ ♪ (a lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ a bank that knows your business grows your business. bmo.

welcome back let's get to "mad dash." opening bell 7.5 minutes from now. a little nike.

>> nike reports on thursday. this is what's interesting today we have cowen and jefferies saying it's good to buy. this is typical to what i was saying at the top of the show. this is where i would have loved to get the buy call. it's absolutely possible that this stock can go to here, but i wanted this, and i think that the easy money has been made in nike that doesn't mean it won't be great. that doesn't mean you won't get some, but it does mean that you're playing with fire because you are betting that everybody else has been wrong. and yet we know they've all been wrong. so i am concerned that this is one of those where it can go up five, and then what? then what's the next catalyst? >> well, the next catalyst will be earnings, as you just pointed out, potentially one way or the other. do you have an expectation going

in >> i think china will be good. i think the u.s. will be good judging by what foot locker says i think it's a great hedge fund trade, but is it a trade for individual i would have liked the individual to have gotten it lower and not be as concerned. but what a hedge fund trade. get low and flip it. >> this was a down draft, what was that a result of >> the u.s. not being good worries about china, worries about foot locker. there was also, david, a sense that -- remember when we pelt the government in china was not going to like nike that's untrue. the government likes nike. i just find that when i see stocks like this, i see to myself, i put on my old hedge fund hat and say, sorry, you missed it. the hedge funds want to catch the 128. they'll probably get it. do i want an individual to do that while they're working

>> cramer today, put all that cool suit -- >> i don't want to hurt people >> all right that's a nice mantra, don't want to hurt people don't forget you can catch us any time and anywhere by "squawk on the street" opening bell podcast

trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content

curated to fit your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab. they're waiting for you. hey, do you have a secd? they're all expecting more. more efficiency. more benefits. more growth. when you realize you c give your people everything, and more. thank you very much. [applause] ask, "now what?" here's what. you go with prudential to protect, empower and grow. with everything you need to deliver, you guessed it... more. one more thing... who's your rock? learn more at prudential.com

of johnson & johnson's spinoff, kenvue they sold most of what they own of the rest of it. it's going to be up sharply. that's a distinct difference from many of the days the stock has had since it was thrust into the public markets the reason why is litigation related. judge denise cody releasing an opinion last night in which

the -- we're talking about the multidistrict product liability litigationelated to the linkage of acetaminophen in prenatal moms and autism in children precluding the testimony, granted. meaning, you can't use them. noted with these rulings, the plaintiffs do not ha admissible evidence to demonstrate prenatal exposure to acetaminophen causes autism or adhd in offspring. while it's possible the litigati will advance in local courts, given the same standards others who have analyzed this, the litigation doesn't have lot of legs. >> stunninrebuke of the plaintiffs bar they have all these experts ready to talk. they're saying the expts ain't no experts this is what j andj is hoping

for wh it comes to talk ligation they have a number of investigations of the people, of the plaintiff's lawyers. it has not happened in part because i think the rim who have died or dying of ovarian cancer -- [ bell ringing ]. >> completely different things and completely different companies. >> i mention it because j&j is hoping -- [ bell ringing ]. >> let's get the opening bell. you see marshawn lynch at the big board, the nfl legend and scho ibrookl, w yorke gh a lot of references to beast mode ts morning. at the nasdaq, idexx

>> the humanizatn pets theory hasn't gone away it's no longer what it was during covid inexx has had a nice move here do point out that there was a time when pets had gten from the garage to your floor to your bed. think they're back on your floor. look out garage. >> today jefferies initiates chewy buy. you've lost some love for the pet business >> i had chewy on and i decided i thought amazon had really come after them they made a very good case that they had health ca including telehealth this is one of those where i'd eat so crow because i was saying, okay, so the d -- the dog barks the number, the dog hits the number, the doctor sees it no, idiot, the parent looks at it icall it parent, and it's

working. so telehealth is working -- telehealth worked for you, for the pets >> teleheah worked for me. no, weill took the pet to th vet. >> once you get the dog on the bed, they never leave the bed. they're never going anywhere. i kicked the darn dog off the bed. the dog's name is palo. >> palo? >> as inalo alalto >> you change thr names all the time >> he's wolfie which is the key doin terminator 2 remember, it wasn't really wolfie >> is it joe morton's dog? >> remember, arnold was trying to figure out whether the parents had been captured by the bad guy, and he was like, see how wolfie is -- wolfie is doing

fine it's not the real name of this it's tony. >> your dogs have no idea at their names are. >> they don't answer to anything tony bites me and he tried to bite me in a really sensitive area, and i've had it. >> let's move on to affirm, shall we >> in a really sensive area, and i've had it. >> i heard you >> holy cow, man now i have to wear a cup >> we're sorry to hear that. you saw affirm shares there. we'll show it to you again while you digest -- >> the image that's now seared >> the image of jim being attacked by his dog. affirm shares are up, they've been up an awful lot lately. they continue that ascen because now they're going to let you news affirm at self-pay at

walmart, a buy-now-pay-later at walmarts, again, 4,500 walmart stores where they have lf-checkout key os there you go >> max lev engine did not have the defaults people thought -- this is the real one max is so tranarent -- carl, this is a parabolic move, obviousl you might get a better chance because the stock -- thing is someing i get uncomfortable with stock 390%. that starts thinking to me that it's had a run, but it's got some news to justify taking it hard >> that's a lot of penetration into the american consumer at the walmart checkout. >> this is before kill lar nah which is buy-now-pay-later yeah, there we go.

♪ >> i'm the ninth man i guess in this one i do think that affirm, unlike upstarwhich has some bad loans at least can jtify the move. it has been a terrif buy-now-pay-later creator. >>s you see at the top left there, qte a move this year, amont the best performers of the ye up almost 400%. >> they buy thnow, do they pay later? >> i thought they'd buy now and say see you later. no, they're paying >> the only dow name up more over three months than nike is boeing, as they now get an order from lufthansa for up to 100 max jets that's going to be the biggest order single aislerom lufthansa is almost 30ears. >> they've cleared the inventory which is fantastic for them.

now theyan start making 30 new planes a month the margins going to be very high this stock goes to 300 pretty much in a heartbeat. it will not be parabolic all it will be is back to where it was. >> this was a $170 stock around halloween. up almost 50% since then. >> they hamajor problems and they solved them when you solve a supply chain problem -- you know what boeing has ing for it there's only two companies, airbus and boeing. air is sold through -- >> has dave's shaming been neutralized? >> i haven't heard him mention boeing without blaming me. >> i would say this is the worst sale i've made for the club. i can talk about it in our 12:00 meing. not everybody watches it i could -- david -- i could hang myself. >> don't do that. >> we don't want to joke about suicide. >> don't do that

i'm sorry that day i gave you a hard time and you listened. >> i did i regret it, but you made a cogent argument against meand the people who follow the club are most grateful th they got out before it doubled. >> i just said you keep being so negative for so many years, why do you still own the stock it's not like you've been particularly constructive on boeing you should have sold it years earlier. >> i should have been buying there's two sides to every market sometimes i got it wrong i got this one wrong, and it wasn't david's fault i got worn down by the mistakes th were making that's what's really happened. it has nothing to do with you. you kept going out -- i wish i

had gotten back in, but that's investing. here is a key issue that you don't -- here is something you don't hear on tv, i screwed up. >> it's been a straight line up since the end of october speaking of transports, jim, what do you make of the journal story about ev startups, some 18 of them that the journalrgue will be in a cash crunch by the end of '24 >> i think rivian is the one that comes through when we rst started talking about these, we knew there would be a limited number to get through. >> many of the companies that are mentioned went public through spac we talked about it, the absurd projections that came along with them they were allowed to make projections because it was a spac filing, not an ipo filing, so to speak. a spac deal, a merger deal

many of those companies that we talked about are suffering and having a hard time because they have to raise cash rivian, obviously, also has to raise cash. >> rivian has the backing of amazon rivian has showrooms like th one i'm going to go to in brooklyn, which is doing well. rivian has pickup -- they have a full suite. >> lucid has the saudis, the pif potentially. >> as per how far i screwed up on boeing -- thank you, david -- you got lucid right. you warned people over and over again. you're 2 for 2. >> just for the record here, i don't pick stocks. you do >> no. but you did say i want people to be careful, here is the structure. you didn't say sell it. >> it was related to it being, again, a spac deal, a successful one, we should point out no longer, obviously, given it's half the price it was if you

just bought the spac guys, shares of google or alphabet are up today, buti thought it was worth paying a bit of attention to the settlement where they're paying $700 million to the states essentially, $630 million to a settlement fund to be distributed to benefit consumers, another $70 million into a fund used by states this relates to claims that google operated the app store, google play, as an illegal monopoly stifling competition from other app distributors on devices used in the google-owned android operating system jim, the antitrust case continues to move along, the big o one. mon. -- the searclitigation.

>> nothe advertising. >> not the advertising, searched, specific to whetr or not they are paying for exclusivity on, for example, the iphone we know they pay an enormous amnt to apple every year to be the exclusive provider of search your iphone the focuon that, as we move through 2024 is going to grow because there's a lot of risk here if thehad to open up on the ipne, for example to all sech, and then you had chatgpt available to you and any other new generative ai offerings, bing, you just go on from there. it would be a different potential world for alphabet and pressure on its business. >> okay. this is a good example of where we took some profits for the club because of this, and also

because of the kanter case about ether they were monopolists by advertising business. he >> that's a separate argument. >> -- take sething off the stocks keep going higherissed. carl, if you look at a stock and it kps going higher, you can say you were wrong or you can say nobody ever got hurt taking a huge profit. i'm in that latter camp. if david is right and everything goes against google -- >> i'm not saying it's going to go against them. >> no, but i'm saying thathe cases are not as weak. these are not weak cases, this is not ftc case. >> there are people following these cases closely, particularly the search ones and how much money they're paying to it's not an insignificant sum foapple either, by the way. >>ave you been thrown by this watch patent dispute >> going back and forth with apple, and we hope for a

work-around. it is something that i think thathey did not expect because they think they have a very, very good ca in the interim, you want that for the holidays so i'm otenterhooks hoping they come up with somethin yes, i'm concerned. >> some argue it could create a rush >> i was at the apple store last week, and all u could see was people buying the apple watc if the word got out, this week is going to be the biggest sales in history now, i do think they can probably do a work-around. i'm not sure masimo has exactly the intellectual property that th think also, you deny peoe to be able to buy watches they don't have it it took them by rprise >> some calls this morning, jpmorgan cuts pepsi, jim we don see anything we see better opportunity with coke and dr pepper, which don't

have the negative overhang >> i know, you look at -- one has frito lay, and frito lays attacked directly by gop 1 coca-cola doesn't have that. i still thought this was heresy. this was a tough pick, a very good company i don't think that we are ready yet to see frito lay franchise shak >> is there going to come a point where are going to be concerned about that >> absolutely, absolutely. >> it's weird, given that snacks drove so much operating leverage and you have the multiple bucket story unlike other beverage now it's a liability. >> remember, pple want them. they just don't want as ma of them bet you can't eat just one, i don't know, i might take the

bet. >> that was lays, in fact? >> yeah. i might take the bet there we did alcohol last night and talked about the browns, talked about brown foreman. their stuff is very fattening. what would happen if jack daniels tasted like water? would you then buy jack daniels know you could get buzzed or hammered and you won't get that from water well, the answer is, wait a second, cannabis cannabis is what's killing alcohol. >> a great report last week looking at states where it's legal, and alcohol is underperforming. >> i tell you, this dry january, david -- >> what dry january? >> it's going to turn into a dry february. >> there's no dry january here. >> what are you, like dothan in ten commandments i think the younger people --

wherever marijuana is free -- is allowed, what happens is a huge number of people say, you know what i'm going to get my buzz from something that's not fattening as opposed to getting my hammering from something that is fattening. it's kind of a -- i don't know it's like diet coke versus coke. diet coke provides less calories why not go with diet coke if you like the taste. >> they start early. you walk along the streets, walking the the subway -- are you kidding me >> definitely a prework ritual. >> prework people get high before work. >> you ride the subway are you high as a kite by the time you get here? >> no, nobody is smoking on the subway, but you can smell it on their clothes. when you walk -- they get high before they go to work. >> should we buy dry cleaners. >> he's always thinking. >> mr. car wash. >> mr. car wash for people

>> gop 1 and cannabis, these are all conspiring why did brown foreman miss the number so badly? brown foreman says because it was success and too much volume. diageo says don't worry about it how do you not worry about it? the stocks certainly are telling you to worry about it. the browns and the clears are having the worst numbers they've had in years gin, vodka, bourbon and whiskey. i've got to tell you, i'm not getting in front of nah freight train. no way. now to the newly constituted version of the nasdaq 100. six components added, doordash, mongodb, splunk. why are they adding splunk when it's getting bought by cisco there's one question we have being removed align technology,

enface, id.com, zoom, added to the index in 1999 ebay it's market cap based. that's the performance >> how much money is indexed >> not terrible. >> take two got in i thought lindy would get in because they got away from dual listing. >> i did a documentary on ebay in the early offs because it was such a powerhouse before amazon. it gives you a sense of the power that company had when it came to e-commerce during that period of time >> here to perform his song ebay, please welcome weird al jankovic. >> a smurf tv tray, i bought on

ebay. >> i was already sold on the concept, but because i came from really the old economy as it was termed at that time, exactly how are we making money in this business is there a business model here i want to spend three or fou hours with the chief financial officer who just converted from part time to full time after a couple of hours, i said, ooh, this is actually a great business model >> still a $22 billion market cap company, guys. it does show you things do change it's a great point carl icahn said split it up. a year later they said we are going to spl it up, carl. >> paypal was up big this was surprising if only st because it's not a company that's going away.

align -- >> so curious why you put splunk in there becau it's going away. >> how about because you're wrong? >> just based on market cap. >> how about pins? >> how about celsius. >> check out bonds today, 2-year 4.55, 10-year north of 3.9 we did get starts this morning six-month high on housing starts bosticed boic at 12:30 and goolsbee tonight. a fresrecord

all right, tandy, what's it gonna be, the drink made from whatever was laying around, or the one made with your drizzly haul? drizly! stock up today, sip well, tomorrow. [female narrator] they line up by the thousands.

each one with a story that breaks your heart. like ravette... every step, brought her pain. their ly hop mercy ships. the largest floating civilian hospital in the world. bringing free surgeries to people who have no other hope. $19 a month will help provide urgently needed surgery foso many still suffering. so don't wait, call the number on your screen. or donate at mercyships.org. it's been a month where we've gotten high-profile notices of layoffs hasbro, spotify a couple examples and now enpha energy going to lay off roughly 10% of

the workforce affecting about 350 employees. it's ban split decision as to which directions stock go in the wake of announcements like that. this name has had a good month dow up 136 almost all sectors are genre we'll take a break and be back in a minute.

jim, what's on "mad." >> i have the ceo of huntington bank, up 3 points. and then oddity, whichs an israeli company that does chemicals. some cosmetic. i'm trying to intervw the israeli companies to see what it's like. i justing think it's tough time over there and let's find out. tough timen the middle east. i'm trying to be understanding, but it's tough for everyone. >> yeah. we'll see you tonight. "mad money," of course, 6:00 p.m. eastern time. back to 4755 or so dow up 150 dot go anywhere. a force to be reckon with. no, not you saquon. hm? you! your business bank account with quickbooks money, now earns 5% apy. 5% apy? that's new! yup, that's how you business differently.

municipal bonds don't usually get the media coverage the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 1-800-376-4376. we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular income... are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-376-4376. that's 1-800-376-4376.

the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com

good tuesday morning welcome to anoth hour of "squawk on the street. i'sara eisen with carl quintanilla and david faber, live for you as always from post nine of the new york stock exchange take a look at stocks, the trend

higher up another quarter percent the on the s&p 500 dow closed a new record yesterday up 0.3%. passed 37,400. the nasdaq doing well up 0.25% treasuries have been underpinning the action, the bullished by in bonds, 10-year note below 3.9 around this tight range where we were post-fed 3.88 to 3.9, 30-year goes above 4%. 30 minutes into the trading session here are three movs we're watching affirm, shares are rallying, the company expanding its partnership with walmart providing pay over te options at self-checkout kiosks at walmart stores affirm says the research reveed more than half of americans are looking to retailers to oer a buy now, pay later tion at checkout shares of first solar moving higher cowen naming it a top pick residential solar demand faces

headwinds utility scaling remains more resilient accenture beating estimates, t stock under pressure after issuing weaker than expected guidance 're going to discuss all of that with ceo julie sweet, joining us later this hour a good read and barometer for tech snding and generative ai right now. let's start with t big stories in the macro world and we have to start with my favorite chart, the dollar/yen, it's moving today. the yen is selling off very sharply. it got a decision overnight from the bank of japan. they're keeping their negative rates and the more surprising part is they're not adjust forward guidance market was thinking they would set up for maybe coming out of negative rates in the early part of next year they didn't do that. the governor sticking to his gu here. she he told me this in july. we're not changing policy. we need to see durable lasting inflation to consider a move and the market doubted this and

thought they would come out of the negative rate policy and they're not and they're not swayed by what the fed is doing or anybody else is doing just a moment for the nikkei, the japanese stock market, up 28% this year, having its best year since 013. >> i guess for an economy that did experience deflation for as long as they did, they don't want any part of it. if you have inflation, you want to get it going even more maybe. they have some growth. by the way their stock market has been a better performer than ours this year they've had an exceptional year for the fee kay. >> exactly. >> companies are buying u.s. companies. >> nippon steel. >> nippon steel steel buying u.s. steel. >> little animal spirits waking up in japan and we've heard and covered this, and i think it helps to have easy policy and negative rate policy and a weaker currency,which has been the story of japan all year long people are still very bullish on this market. it does raise the question about what's going to happen with rate differentials and in our world and whether the markets are too

excited about rate cuts. that's the story of the day. mary daly's quote was interesting, she's a voter this year, and she, unlike some of her other colleagues, did not go to great lengths to walk back all the aggressive cuts. she did say there's more work to do and the work includes not only focusing on bringing inflation down to 2%, but also recognizing that we want to continue to do this gently with as few disruptions to the labor market as possible i.e., we're not just thinking about squashing inflation now. we're thinking about preserving the soft landing and that's the case for cutting rates. >> yeah. not at all using the tone that mester used yesterday saying the market may be thinking a little more aggressively than i am. the piece daly is quoted in the journal by nick timerrose does a preview of what we might get out friday good thing this comes in sub-2 on an six-month annualized and will feed dovish narrative

headlines. >> this is why i don't think the market is taking to heart the pushbackers from the fed whether williams or goolsbee a little bit or mester as you mentioned, because first of all, the market has not changed at all 3.88 is where we were after the fed meeting. unless we get some sort of hot cpi or jobs number, the market is not there the market is convinced that the fed is going to be moving into cutting mode to preserve the jobs recovery and that inflation is coming back down and all the signs are -- something changed where it stopped becoming so threatening, the inflation number and you see that in inflation expectations, and you see that in the numbers as well pce will be further confirmation of that. it's why everyone is so bullish right now. >> yeah. although, we may have less to lean on in terms of headline because of what energy has done. bounce out of crude back to 73 today. not going to give us perhaps the $3 average some were hoping for in this country when it comes to

retail sghoos we-- gas. >> we're watching the red sea and potential shipping rates as well we'll talk to the ceo of maersk in the next hour about how disruptive this could be and whether that's an inflation headwind i think the market has moved on from worrying about oil prices as an inflation impact the fed has made it clear it's focused on core inflation, and that food and energy prices, in particular are volatile and being buoyed by the geopolitical risks. it's a hard thing for the fed to target if we start to get bump ups of inflation just because there's all this good feeling around the markets and, you know, marco golonic of jpmorgan continues to be cautious and under weight equities did you see that >> yes, i did. >> it's worth highlighting the call because, you know, everybody is so excited about goldilocks and soft landing, and he says that he thinks that fed impact is going to hit next year

and hurt the economy inflation, economic demand will soften in 2024 allowing the fed to begin easing around mid-year but worries about the growth impact and the geopolitical impact and that's why he's staying underweight equities something to consider, noevts is in the sort of excited camp about no recession, inflation comes down, fed starts cutting rate rates. >> let's continue the market conversation, cfre research strategist sam stovall with us, target of 4940 it's good to see you again good morning. >> good morning, carl. good to see you. >> i wonder, you make the point that if s&p manages to notch an all-time high there might be a little momentum on the upside rather than the downside. >> absolutely. history would basically tell you, but, obviously, not guarantee, that when we hit a new all-time high and recover everything we lost from the prior bear mart, that there's a greater likelihood of a 5%

advance than there is a 5% decline, and that essentially we have seen every move above that prior bear market level to be positive in a sense, you know, it's not as if we then just turned right around immediately and ended up selling off. >> you think the market right now is leaning too much on multiples, or can earnings ratify this good mood next year? >> well, prices lead fundamentals and right now i believe that prices are leading fundamentals we're looking for earnings about 243 for the s&p 500 in 2024. we are at about 20 times forward earnings, which is -- might seem a bit pricey if you go back 20 years, which is more like a 17 multiple, but the interest rate environment is still such that with the prospect of lower rates that is actually holding up the multiple in my opinion. >> look at a chart say like a

two-year chart of the russell, sam, it just keeps trying to get over 2,000 four times it's been rebuffed. i wonder what you think it takes to move past that? >> well, i think it will move past that. mark arbiter who used to be the chief technician at s&p, used to say large round numbers serve as a rusty door and require several attempts before finally swinging open i think that's the case with the russell. if you look at small caps and in this case the s&p small caps 600, it's trading at about a 35% discount to its relative average p/e over the last 20 years knowing that mid and small cap stocks have underperformed large caps in eight of the last ten years, both are trading at more than 30% relative p/e discounts that -- and with the prospect that the fed will not be raising rates and will soon be cutting rates, i think that would end up providing that impetus to allow

the russell to break above that resistance level >> which sectors do you think are best positioned? if you like the russell does that mean you like financials, materials, more cyclical sectors? >> hey, sara. >> hey. >> actually, research, cfra's technical arm, put out a note talking about industrials and how on an intermediate and a short-term basis they have seen above average performance in terms of their power ratings and areas such as industrial machinery building products look very strong. but also with the financial side you're looking at regional banks, asset managers and consumer finance that are showing strong power ratings as well as strong cfra stars on the fundamental side. >> finally, sam, you might have heard before we came to you, we reported some of the house where jpmorgan and the boil the frog

scenario, the geopolitical concerns, does that temper your '24 target would it be higher given some frictions not existing right now? >> perry mason would say you're trying to lead the witness here, carl, but i would agree with you, that the number 4940 was selected mainly because i used our analyst target price differentials over the coming year, also take a look at point and figure numbers to come up with a target, but also realizing that 5,000 is a very strong resistance level and with a lot of headwinds around us that it could end up causing us to pause for a while and digest these gains. but i think that eventually we will be seeing a strong 2024 let's remember, every first term president up for re-election has seen the market advance by double digits and never decline since world war ii. >> limited sample, but absolutely right

talk soon, thank you. >> all right my pleasure. by the way, be sure to check out wall street's official 2024 stock market outlook all year with cnbc's market strategist survey on cnbc.com/pro >>now to that fast developing situation in the r sea shipping giant maersk says it is redirecting its vessels and now be saing arod thsouthe point offrica,hat is to avoid the red a confct area where houthi mitantsave been launching missiles at a number of ships nbc news correspondent alley arouzi joins us live in cairo and has the latest for us. >> reporter: hey, david. that's right e united states has announced the launch of a multinational force to protect trade in the red sea after a string of attacks by iranian-backed yemeni houthi rebels that he managed to disrupt shipping lines, trade and commerce in those vital waterways. defense secretary lloyd austin said bahrain, canada, france,

italy, the seychelles and great britain would be among the countries joining this multinational secuty initiative and also ongoing talks to see if other arab nations such as the saudis and egyptians could join this coalition known as operation prosperity guardian, a multinational security initiative uer the umbrella of the combined maritime forces which focuses on secity in the red sea. there are complications. saudis just lowered tensions with iran in a fragile agreement. if they were to join the coalition and get into some sort of aight with the houthis, that could scuffer tha understanding between tehran and riyadh the initiative seems to be expedited after a weeken attacks in the red sea they've ramped up drone and missile strikes on vessels and key shipping lanes with anything that has an apparent link to israel over the weekend, the u.s. and british navy shot down at least

15 drones and misses in that waterway ultimately prompting over a dozen shipping companies to suspend travel through the red sea because of security concerns, which clearly has a massive effect on trade, availability of goods and, of course, insurance prices something the houthis and their iranian patrons are only too aware of and want to exploit as much as possible look, around 12% of global trade passes through the red sea, whicconnects the mediterranean sea by the suecanal, including 30% of container traffic they want to hurt them financially to change their calculations and the houthis have pledged to continue these attacks, despite the formation of this coalition. guys >> question, which is what does the coalition do, the u.s.-led coalition here what are they prepared and how aggrsive do you -- do people expect they will be in fighting the houthis?

>> reporte well, that's the question i mean, they are going to be there to give safe passage to all of these vessels and container ships and oil tankers that want to get to israeli ports, but, you know, those equations could go out of the window if houthis start attacking these ships and then that could even really further complicate the situation look, initially the u.s. didn't want to attack the houthis for fear of widening this conflict and drawing iran into it, but that could still happen with all of these coalition ships protecting the cargo ships if they were to get into some sort of kinetic battle on those waterways, there is a serious potential of widening this conflict so we're going to have to see day by day how this goes on, how many ships are going to be protecting these container ships, and really how far the houthis are willing to go and how much the iranians want to push them to disrupt that region as much as possible and cause

financial harm and put israel and the u.s. under pressure. >> ali, thank you very much for the report from cairo. the ceo of maersk will join us next hour on "money movers" at 11:00 a.m. eaern. as we head to break here is our road map for the hour. accenture beating earnings estimates but falling on its outlook. the company's ceo joins us next into tech on a tear the best peorming sector this year. will we see a repeat in '24? we'll discuss that and get top picks. loaning in on housing mortgage rates easing but elevated inventories still low. the ceo of compass going to give us his outlook for the housing market in '24 when "squawk on the street" continues.

you're probably not easily persuaded to switch mobile providers for your business. but what if we told you it's possible that comcast business mobile can save you up to 75% a year on your wireless bill versus the big three carriers? did we peak your interest? you can get two unlimited lines for just $30 each a month. there are no term contracts or line activation fees.

and you can bring your own device. oh, and all on the most reliable 5g mobile network nationwide. wireless that works for you. it's not just possible, it's happening. lcome back to "squawk on the street." accenture beating earngs estimates posting softer guidance f the quarter and saying on the call they expect strong second half demand next year joining us is accenture ceo julie sweet. the stock turns around and is higher good to talk to you. >> great to talk to you. thanks for having me. >> tell us a little bit about what you're seeing on the demand side and what it says about the appetite for i.t. spending right now? >> well, you know, it's more of the same in terms of the operating environment, so we're seeing some, you know, pace of the spend has gone down a little bit as compared to the last couple of years, but still very

strong fundamentals, so we reconfirmed guidance for the year, 2 to 5%, and what's a real standout for our quarter is the momentum in gen ai last year and the entire year we had $300 million of gen ai sales in a single quarter, q1 we were at $450 million. so full speed ahead. tech matters transformation matters the macro we're all going to navigate for a while, but the fundamentals are clear tech is needed to reinvent industry. >> is the appetite for generative ai outweighing the sort of weakness that you're seeing in the macro environment and where is that impacting? is that in the cloud business? >> well, we're seeing strong momentum in cloud. everything from migration to modernization, so moving to the cloud and then once you're there, using it. data in ai, putting in the data foundation that allows you to

use ai, but also in the platform it's all about building a secure digital core and that's why you see our security also rising what you have from the macro side is that clients are saying, you know, when i'm talking to ceos they're like we know we need to reinvent with tech data and ai and help us make choices now, dot most material things while we pace out our spending, given some of the challenges in the environment. so it's the digital core and then using that gital core to reinvent. >> is that whyevenue growth momentum is slower than it's how long of a period are we d looking at here for that >> so, really what we look at, we've given guidance of 2 to 5 for the year and what you're seeing is that the transformation, so we had 30 clients very strong do $100 million or more of bookings, so what is that telling you the larger deals iwhat clients

are focused on because they're most material and nvert to revenue later which is why we're very condent in our h.2. i say think about thkind of work, so we announced, breaking news, about an hour ago, an expanded partnership with mcdonald's amazing company that has been usg technology to transform the stomer experience, and its operations they're now moving from they have a strong gital core now moving to the edge, taking their platforms across connected to the crowd, across the globe at their restaurants, to create the next iteration, the next reinvention of the customer experience and the crew experience those are the kinds of really exciting projects that clients are taking on that are massively transforming the experiences and that's our sweet spot to really partner with clients who want to reinvent >> julie, it's david when do you get to the point

where clients have the data they need in order to use gen ai effectively, generative ai effectively? you discussed until you have that data you n't really do a lot of the potential functionality you're talking about? >> right and that's the opportunity we estimate only there's about only less than 10% of clients actually have a strong data foundation and ai foundation, so big opportunity ahead. you have to first get to the cloud and then you have to be smart about building out tha that, it's amazing what you can do look at bba, big european bank, they used traditional ai in a strong digital core to do things like instead of onboarding a customer in a week to do it in minutes. now we are helping them introduce a gen ai enabled financial coach which will completely disrupt, you know, how you serve the customer so you have to have that strong digital core and then you can

really do amazing things to really change the growth trajectory. >> how many years is that going to be until that's there >> it depends on where you are so if you already got a strong digital core you have clients likecdonald's and bbba who are moving to use gen ai solutions, for othe, you've got to -- who are at the beginning, it's going months, two years to get to the cloud and then to move the data. it really depends. that's why we are so focused on what we call compressed transformation, how do you get clients there faster by leveraging our investments we have platforms that use automation we're using gen ai now and how are we thinking we can deliver our services so the reason we need to do that faster and then begin to be able to use the gen ai which will drive the next waves of growth. >> finally, the market has a habit of looking past foreign

exchange pressures, but it sounds like that w a material part of this particular bit of guidance is it any worse than usual >> o you know, it's about the same. >> curious about your hiring plans? i always like to ask you, since you have, what, 700,000 employees or something what does 2024 look li for you? >> well, you know, we hire ahead of demand often because we have systems that can tell us what's happening, so where is the demand going to be and a core competency is making demand and our people really matcup, and so we had an increase thiquarter as you saw,nd we would expect that we'll continue to add ople as we see the demand continue to rise as a reminder we will build throughout the year with our guidance of 2 to 5. >> stock is climbing here now. julie sweet, thank you smuch for coming oand discusses the quarter. >> great thank you. >> thank you for having me.

>> still to come, exclusive results of cnbc's all-america economic survey. who voters are betting on when it comes to the economy, as we go into the elections next year. some of the numbers may surprise you. "squawk on the street" is back after this

you will love migrating... the sun... the sand... [ thunder clap ] we're not gonna make it. are we? uncle dan!

we're trying to get to jamaica. stay close and... everything will be all right. [ gulps ] cnbc out with a new all-america economic survey this looking at the biden administration losing support heading into eleion year steve liesman joins us with the results. ste? >> sara, despite solid economic data and hrty plans, amecans giving preside biden terrible provalumbers first t's lo overa 35% overall approval vsu59 president's tenuree bc all , 62 on thecomy. he's almost as much unr war he'evereen. now foreign picy, 29-, a cordigh. pointunder water. lot ere it fallen om

points on disappval, dn 6 thiss noin the most nderful way for a president to be heading into re-eleion year and one rely ieresti gup is lino vote and pformance here you can see that it was so of even in the second quarter and now a big gap here, with 61% disapproval ofreside biden and just8% approval. now taking a look at trump versus biden all of this betteror fmer esidentrump an president bin. the gawas 4 points margin of ror was 3.1% of percenge pnts we'routside the margin oerror. trump le over biden the head-to-head match presenlosing support among key grps thapuhim into the white use back in 2020 first here in the outer suburbs, the -- president bidenas made

actually some gains re but t here on the urban core these were key counties for the present in 2020. women 18 to 49mong the harst hit when it comes to inflation out ere. their suort has ned. lano voter we sa aually flping fm plus 7 for biden, to ps 5 for president trump. onhe o hand biden ha't started campaigning ye it ulearf grpsot supporting him now would pull thlever for donaldrump the lly pulpit of the presidency is powerful perso biden s been unable to use it to convince amicans he deserves another term. another thing here is democrat democrats give him 70% approva on the economy when trump was in office republica gave him a 90% approval rating. >> it's been this sort of question why president biden doesn't get more credit for what we report every day, steve, the fact that inflation is starting to come -- has come down a lot, that the economy has managed to avoid recession, that

jobs market is pretty healthy. i asked secretary yellen last week about this why she doesn't think they're tting credit and she was saying inflation is coming down, but it'higher where it is, and people notice that confidence and saw it tick up in the university of michigan which could be a sign maybe they will start to feel better about it. i'm curious what you think is keeping people feeling not great about the president's job there? >>hose are great points. we did see the slightest uptk in some of o sentiment inditors in the surveynd, of course, we saw very positive spending plans that's a bigontradictionut there. think at wre learning in economicfrom ts whole proceshere, sara, i th yove beeonop of is as rateinflation om a public opinion standpoi is much less important than the pri level until things start going back down, people are not going to feels if things are right in

the world. and even if you're getting p mo, if you're spding more and getting less, as we quote e of our plstersaying,t wears you out ov time and i think there's also some people who are thinking you know what, there's so thiage bin that preside biden is up to the job so nmatterhat we ask they still don'tpprove of his handling of that because of their concern about his age. carl >> that makes sense. >> yeah. definitely the place level thing isomething that some fed officials have taken or tried to a tackle, cook in particular thanks steve liesman. > still to come, tech crushing it this year the sector is up more than 50% can that red hot run continue in '24 we'll ta about it and get picks in that space when we return ( ♪ ♪ ) ( ♪ ♪ )

♪ (when the day that) ♪ ♪ (lies ahead of me) ♪ ♪ ( seems impossible to face) ♪ ♪ (a lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ a bank that knows your business grows your business. bmo. [ "i'll be seeing you" by the five satins ] the mercedes-benz holiday bu love celebration is here.. come in now for the exceptional offers you're bound to love, now, through january 2nd.

welcome back i'm silvana henao with your cnbc news update. the united nations security council is expected to take anothevote today on whether to call for another immediate cease-fire in isra's war against hamas. the u.s. vetoed a similar resolution earlier this month, anit comes as attempts to secure another hostage deal and fighting in gaza seem to be at a standstill. the co-owner of new york city's chrysler building is reportedly in talks to sell its stake after the insolvency last month. australian property company cigna acquired the property with new york retail developer rfr holding. a cigna administrator said today the potential sale is part of the company's liquidation plan.

ice lannic authority says the intensity of last night's volcanic eruption is decreasing, but they warn that's not any indication of how long the eruption will last officials say the long expected eruption is not posing any threat to life the icelandic board says traffic to and from the country is operating normally. >> thank you silvana henao. just want to address a story that we've been following if you're on social media, you've seen the protests, and that is some of the protests and boycotts around starbucks because of the middle east because i just got my hands on an internal memo that the ceo of starbucks has sent out to his employees, end-of-the-year kind of memo and for the first time he does address these recent protests surrounding the company. an excerpt from the note, while i'm grateful for so much, i am concerned about the state of the world we live in there are conflicts in many parts that has unleashed violence against the innocent,

hate and weaponized speech and lies, all of which we condemn. he goes on to talk about the impact on starbucks itself in the stores he says citis around the world including here in north america have seen escalating protests. many of our sores have experienced incidents of vandalism. we see miss representation on social media of what we stand for. they're not really taking a side here, but i thought it was notable that they're coming out and talking about it he wants to look after the safety of his employees. how this all began, well starbucks got -- starbucks doesn't have stores in israel, interestingly. the founder howard schultz is jewish, that cou be one reason also there was a legal issue with the starbucks union the starbucks union had immediately come out and expressed solidarity with hamas basically, with the pastinians after the terrorist attack and

starbucks sued and said you can't use our logo or intellectual property for these statements and they condemned the terrorist attacks. potentially that just helped fuel what has been increasing number of protests, not just in the middle east but in europe as well around starbucks' stores. is it having a material impact on business? we don't know. some numbers have poind to loss of traffic numbers. starbucks has had a rough time in the stock markeanyway in the last, you know, few weeks and months. >> yeah. >> but iis clearly something we are watching and an issue that business has to deal with in 2023. >> interesting to see his commentshere and to your point about starbucks, i think the focus iss much on china and competition there which is significant fr what i hear from people on the ground in termof at least their pace of store openings and overall in china. >> but the union tensions are also there. >> yeah. >> and i don't think this this made it not better. now the union is counter sui

for defamation it's not great. >> no. >> just another challenge for them. >> yes. >> all right let's talk some tech, shall we it is broadly speaking the best performing sector this year led by theagnificent seven our next guest predicts microsoft and apple will be on the path to $4 trillion by 2024. i would argue they're on the path, but will they get there? he says cyber security is the strongest subsector in tech. you know the guy, he's dan ivess, web busch security analyst and joins us at post nine as ever looking quite dapper i don't think any of our audience will be surprised to hear you're bullish going into 2024, and a lot of it, what is your thesis is ai. what gives you the confidence you will be right? >> i think it's the use cases.

use cases, that's the yellow brick road you follow the use cases that's where the growth is exploding. when i look at end prize software, when i look at some of really the transformative names, what's happening with microsoft, what's happened in alphabet, godfather of ai nvidia and then some of the pure plays, palantir, i think the difference now, it's going to spread to the rest of tech in 2024 i believe this new tech bull market has already begun. >> right you've talked about just in the past being a moment similar to 1995, essentially advent of the internet when you talk about a spread, though, and you see what the benefits going to so many companies and that will be he reflected more broadly in their stock prices as well beyond sort of the -- some of the names we're looking at and other beneficiaries so far this year. >> the difference is when i look at street numbers for 2024 across tech, specifically when i look at software and big tech, potentially underestimated by 5,

7, 10% so when you look over the next few years, even some of the bears now they're coming out of their caves out of hibernation mode starting to revalue some of these names in terms of what the growth could look like that's why i think magnificent seven, i believe it's up 30% over the next year in terms of overall tech, we see a year from now, tech is up another 25%. because of this transformational ai revolution that's now here. >> i'm curious to know, you say apple, which also is you're positive on and believe will have a good year next year, you see it introduced in the ai app store. there are a number of investors like where is apple on ai? it's not a name that comes up that often and do they have a strategy is it going to be effective and robust i think look, cook, others, play checkers and this is another example. they've been late, but within those walls of apple, i think what they're focused on is

developing a separate app store going to be ai apps within apple's ecosystem and from a monetization perspective could be a 5, $6 billion per year. something that gets talked about at wwdc, one of our predictions in 2024 and this is going to be another part of that rerating. a year from now, the first $4 trillion company we believe will happen in 2024 being apple, followed by redman and nadella in terms of microsoft. >> the good part is, tan, while we have to keep it short today, we have you back soon and we will a year from now to see if you were right. >> thanks for having me. the bull markets here, we think it's get out the popcorn moment for tech. >> get out the popcorn sit back and watch >> i think as numbers go higher the bears come out of hibernation mode, soft landing takes place, and this ai 1995 moment happens i think that's why it's the perfect storm for a bull market in tech. >> all right

dan ives, thank you. >> thank you still to come, the ceo of compass on his housing outlook for the new year as mortgage rates continue to drop in december as for the markets dow up almost 200. almost back to 4760. the vix closer to 12 than 13 we're back in a minute a force to be reckon with. no, not you saquon. hm? you! your business bank account with quickbooks money, now earns 5% apy. 5% apy? that's new! yup, that's how you business differently.

i think i'm ready for this. heck ya! with e*trade you're ready for anything. marriage. kids. college. kids moving back in after college. ♪ here's to getting financially ready for anything! and here's to being single and ready to mingle. who's ready to cha-cha?!

weome back to "squawk on the street." fresh clues today about the health of the housing market construction of new homes jumping alst 15% last month to the highest level sie may. our next guest says we're not out of the woods yet dpite mortgage rates dropping but he is feelingptimistic. compass co-founder and ceo rort reffkin joins us at post nine nice to see you. >> nice to see you as well. >> how much activity does a move in mortgage rates fr 20-- from

to 6.5% release? >> buyers react to the change more than the mortgage rate itself and suggests next year will be a very good year the key question, will the fed lower rates in the march meeting before the market orn the may meeting terwards look, 2023 was the worst year in transactions since 1993. and for the first time all of the key metrics on thenventory side and buyer side are pointing in the right direction we have more inventory ending the ye than last year. inventory is building. buyer demand was high even at 8.1% mortgage rates and now it's 6.5. >> what's driving the inventory? people feeling like they can sell >> sellers are adjusting to the new normal and you can only hold back life ents for so long, diverse diploma diamonds and death and forces inventory to be brought to the market. not that much, though it's still at the -- yes, at the

margin, but the flood of sellers and creating aarket that would allow buyers to really benefit, is not there yet >> that's a very fair point. we're not seeing a flood of inventory. just a modest amount of inventory. 4% more than last year isn't that great, and although it's 4% more inventory than this time last year it's 39% less inventory than 2019 before the pandemic period. very fair point. but after a period of like 2023, of meaningful contraction, this does suggest that 2024 will be modest expansion because more inventory equals more sales. >> we've been through cycles and this part of the cycle before, though, but not where work from home was as universal as it is does that make this one different than past cycles >> work from home is also a modest catalyst to moving

because ceos reilize you can't build a great culture virtually. the boom towns which benefitted from the work-from-home era, are slowly requiring bringing inventory to the market more than others. >> so what is not where most demand >> the hottest markets are what we call the spillover migration markets. those are markets adjacent to core markets that are becoming too expensive. so, san francisco, people are moving from there to sacramento. from austin to san antonio from d.c. to raleigh. >> what about rents, i know it's a component of your overall business we have started to see declines. what are your expectations as we move through 2024? >> in thiseriod of inflation where rents are a big contribution to that, a big factor, one the best signs we're seeing are around rents. rents have declined every month for thlast five months we saw in november the sharpt

decline in three years in manhattan, which has seen 27 months of rental increases, saw the first time a rental decline. >> why because inflation is coming down finally? >> yeah. we're seeing deflation in the rental market because there's too much inventory on the rental side. >> are you going to hire more people next year to get ready for this actual increase in business or you're okay? >> look, at compass we're committed to keeping costs low, so we have meaningful expansion in ebitda we can share with our investors. >> always great to get that from sounding a little better, a little more optimistic than what we've talked to you in the past. a quick programming note tomorrow morning don't miss an exclusive with -- no, it's not tomorrow morning it's thursday morning. yeah ursday today's tuesday, isn't it? >> today's tuesday >> thursday. you saw him there. he's the outgoing ceo of morgan

stanley, james gorman. ie has his exit intervw thursday around 10:30 a.m. eastern. we'll be right back. you can't buy great conversations or moments that matter, but you can invest in them. at t. rowe price our strategic investing approach can help you build the future you imagine. t. rowe price, invest with confidence. 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. together, we built something truly beautiful. it takes years of dedication to get to this milestone.

the new york stock exchange is a symbol of what america is all about the potential of an american dream. it is day one. a lot of work has happened to lead to this historic moment. the only way you can move a society forward is a true exprsion of freedom. ♪♪ i'm a little anxious, i'm a little excited. i'm gonna be emotional, she's gonna be emotional, but it's gonna be so worth it.

i love that i can give back to one of our customers. i hope you enjoy these amazing gifts. oh my goodness. oh, you guys. i know you like wrestling, so we got you some vip tickets. you have made an impact. so have you. for you guys to be out here doing something like this, it restores a lot of faith in humanity. airlines and airports across

the country tting ready for the year-end surge of travelers. phil lebeau has more on what to expect this year hey, phil. >> hey, carl, it's going to be a couple of busy weeks if the weather cooperates, we could see record days. here's what's expected, similar to what we saw during thanksgiving, if not record, record daily averages in terms of number of passengers. 2.8 million are expected to fly evy day up 16% compared to last year. busiest days, no surprise, right before and right after christmas. thursday and friday of this week tuesday through thursday of next week are the airlines better prepared than they were last year they believe so. they've added more flights, more staffing, aiorts have also added more staffing. in fact, if you look at the staffing right now for the airline industry, it's at its highest point since 2001 what does this mean for the airline stocks yeah, they've had a nice move since the end of october they are expecting this to be the catalyst towards a strong

end of thyear, strong beginning of the year. as you take a look at the four largest in the u.s., remember, they are going to be pushed to the max here more than 49,000 flights will be at one point during a day -- at one point during the next couple of weeks also as you take a look at the fo smaller airlines, talking about alaska as well as jetblue, spirit and frontier, the other thing to keep in mind is that the airline fares right now, they're not dramatically different than what they were last year. on average about $349, according to the website hopper, which tracks airfares. bottom line is it is expected to be extremely busy. if the weather cooperates, we could see one day over the next couple of weeks where 3 million people are flying in one day here in the united states. that has never happened. we've come close that could happen over the next couple of weeks. >> all right i'm flying on one of those days. i hope is not that day

it's going to be busy. phil, thank you. >> you bet phil lebeau. we wrap up this hour here, i want to point out that the s&p up almost 0.50% and osing on being up 24% for the year. the nasdaq, you ask, is up over 43% for 2023 so, quite some numbers don't se tobe helping biden' approval rating, do they ntueriart vegera coins ght after this

♪ (cheery music) - they get it. they know how it works... and more importantly... it works for them. - i don't have any anxiety about money anymore. - i don't have to worry about a mortgage payment every month. - it allowed me to live in my home... and not have to pay payments. - [narrator] if you're 62 or older and own your home,

you could access your equity to improve your lifestyle. a reverse mortgage loan eliminates your monthly mortgage payments and puts tax-free cash in your pocket. call the number on your screen. - it was the best thing i've ever done, and- - really? - yes, without a doubt! - just like these folks, aag can show you how a reverse mortgage loan uses your built-up home equity to give you tax-free cash. - it's a good thing. - why don't you get the facts? like these folks did. - [narrator] call right now to receive your free, no-obligation info kit. call the number on your screen. all right, shea, are you throwing a dress like a dad party, a birthday brunch, or a vow renewal for your dogs? yes! the right drinks delivered for any party. drizly.

good tuesday morning i'm carl quintanilla with sara eisen. welcome to "money movers" this hour maersk chief vincent clerc on the global shipping supply. walt bettinger, what he's seeing from his retail vinnester clients and a possible reversal for regional banks. bruce richards, $20 billion under management what does bruce see ahead for stocks, private credit and m&a first, though, stocks, a record high on the