futures right now, back down 148. we were down 50. we had recovered, now back down 75 or so on the nasdaq s&p off 21 interest rates haven't been the issue today. about 4% now on the ten-year and bitcoin is right at about 43,000 make sure you join us. tomorrow might be a little precipitation? >> i think thursday. >> that's thursday we'll be here. please join us "squawk on the street" is next good tuesday morning welcome to "squawk on the street." i'm carl quint tina with jim faber and david faber. stocks are lower in europe and asia on some china weakness. a risk in the red sea. yields fall on a very low i'm prior sur vie.

goldman sachs, morgan stanley out with results rare iphone discounts in china. there's demand perhaps waning a bit. elon musk wants more control over tesla, at least if you follow his tweets. he wants perhaps 25% voting control, this amidst the company's ai initiatives we'll talk that through. >> let's begin with the bank earnings from goldman and morgan stanley. equities at goldman getting some attention this morning. >> i thought goldman is much further along on the transition, going back the way it used to be i was worried about the apple card they've got that cordoned off. i think it will be fine. a merger will be great and they're very low key about it. morgan stanley the banks are rolling over no matter what. goldman was terrific, opened up

a couple percent when jpmorgan finished down, you just said, i don't want to touch this group jpmorgan with one of the best i've seen in history it doesn't matter what you say people want this group out. >> because >> because i think the group moved a lot. i think there's a belief that it can't get better than this i disagree entirely. i think you can have a huge year of m&a people say this group came in too hot. morgan stanley was at 70, went to 92. sell, sell, sell wells had a good quarter it doesn't matter, david this group was set to sell and they're selling it. >> i feel like it seems so rare that the group actually really does perform well after earnings >> i couldn't find the time. that's a very good call. >> a great consistency >> if they ran, you're so right.

that's your feel but 'em peericly it's absolutely true it's a really bad group to own. >> they don't seem to underperform to your point had numbers well above what most of the analysts had been expecting there are fdic charges that some have included in their estimates. overall we can tell you goldman better-than-expected. >> i was going over goldman with goldman people i know, i said, wow, great quarter, sorry about what going to happen they said, what's going to happen i said, well, your stocks go down that's what banks do when they go up into the quarter david is right thes these. >> record aem, up 2 trillion a piece in "the consumer" how they're doubling down on wealthy clients. >> they're back to the way it used to be with the hunting elephants which is where the margins are. i think they're probably staring

at the stock right now and saying how is this possible? this was as good as it gets. the answer is it's possible, but it was as good as it gets. what's the matter? >> i don't understand our charts 0.64% is which decline >> now our viewers are also going to share my frustration. they still have a return on tangible equity that's nothing -- what happened to double digits, man >> -- >> i did. >> i remember when you called me to stay on boeing. you want boeing? sold i remember you telling me to take the eagles. i said you're out of your mind. >> carl, i'm to blame for anything bad that's happened >> yes >> -- >> he said go in big vivek

>> can we come back to this? in 2023 they get to -- roe was 7.1% for the fourth quarter. that's pedestrian. >> they near a transition, transitional mode. >> transitional what >> you want them to own that company that was like a -- you want to do your porch over you hire goldman >> they have moved on from the lower-end consumer stuff to big stuff. >> can you say that took guts to do. >> -- >> people want to sell them. then you start seeing this group thing. we saw this, carl -- down 3. you don't even know. you moron sellers, betting on the stock being down

hey, let me get in there and make a buck three. a lot of morons playing the game a lot of non-teamwork, a lot of firings. morgan stanley is not bad. go ahead, sell it because you think you know more than me. you don't. you'll take the stock down 5 ultimately it will go to 100. you're a bunch of clowns i said to tammy reid, i don't know anything because i'm a fan. she said correct >> that was a great stuff saturday night jim, to your point about ipos, dina friedman on squad, the nyc vice chair tuttle talking about a deal today in 3d design. >> if you look at what's going on in biotech, you're either going to go public or get bought there's a lot of companies, like roche bought a company i thought it was going to go 5 they got it for 2.5. i think this is a halcyon moment

for ipos david hasn't mentioned it, but the ftc -- >> why do all roads lead back to lina kahn? >> these are important lineups, m&a lineup i'm getting with an m&a lawyer this week. he's almost too busy to see me. >> by the way, we have a large deal we will get to. synopsis deal, $35 billion half cash, half stock. sure, a lot more behind that you're right, m&a is going to be far stronger this year it would seem at this point >> why do you want to sell these stocks who is selling >> listen, it's important. it's a himar engine business it does move the needle for the goldmans and the morgans

really, jim, if you're focused on a resurgence of it, you might want the pewer plays evercore advised synopsis on the an sis deal. you have evercore, pjt, mole liss, even la sard there >> you're right. >> even though i don't want to say it doesn't move the needle it does for the goldmans and the jpmorgans. >> nvidia can say it's getting out of the banking business, it's not even in it. it would take the stock up 15. i don't know if you heard jim brier this weekend when we had dinner with him at that great may cnbc conference, he was telling me nvidia is unbelievable he's a really smart guy.

>> solomon tomorrow. >> his stock will be down 3 after he speaks. sorry. >> 10 and 11 weeks positive, trying to isolate the initial week of the year where we were down almost 2% this empire print is the weakest since the depths of covid and the biggest miss since spring of 2020 >> that was out of sync with the thesis of course, interest rates are going higher today i think -- david, we're in this weird moment where i read a lot of articles about how the year started poorly i'm like where where has the year started poorly with what? where? >> where economically >> no, stocks reacting to the economic news that the stocks have divorced themselves from weaker news. they've divorced themselves from the fact that the fed is not going to cut and the march cut is co-numerical.

i do think they should spend some time in the tank. jpmorgan is down three right now jamie dimon. >> $2.87 trillion. in the last week -- >> everyone is giving discounts in china, other than that weird

think. you guys look at temu. i saw a pair of boots they'll pay liked $80. some of these chinese sites are incredible it proves to amazon, to jassy. yes, you have the stock under pressure okay all right. take it down i don't care >> there are reports in the bloomberg journal that they are discounting iphones as a result -- >> individuals are out of money -- >> they have a consumer demand issue in china for sure. choin nah's economy has to be a continued focus, there are american companies relying on chinese consumer demand, not to mention boeing which is a separate issue their safety issues seem to be causing issue for them back to the consumer demand, yeah, there's deflation in china right now. then you get to the export side, there's a believe that china will ramp up exports more which

will represent a significant competitive factor for u.s. manufacturers where they once again try to dump various things despite our tariffs. it does matter, that chinese economy. >> i'm not a political guy do you think the chinese awoke this morning to a straw poll in iowa and said, holy cow, we're in a real jam here >> the one thing really consistent between the biden administration and the trump administration is the tariffs on china. none that i'm aware of have been removed. we have new ones -- >> raimundo is very involved in. >> a new taiwan election that went not the chinese way china wants to issue a trillion dollar bond -- actually not that much we know from eunice yu -- >> there are ghost towns

>> do they have tumbleweeds. >> they've got demographic issues we don't get a youth unemployment number anymore. all that said, they can export a lot of stuff talk to the europeans about evs which are becoming higher quality. >> that's a good point >> are we going to keep them out of this market, $28,000 evs. you won't be able to buy them here some people might say, come on, it solves the inflation problems. >> good point. the inflation point is being solved by -- >> headline of the journal, wary world watches as prices fall we talked about cpi on friday. three straight months, worst since the asian financial crisis chinese stocks relative to the s&p are the cheapest in almost a decade and a half. >> i know. you come in and i don't know

about alibaba. japan is back to when it was bigger than us. >> japan, that had a real renaissance. >> we don't talk about it at all. it just happens. >> it's been the best market of all, and no one is even talking about toyota they're talking about tesla but not toyota. >> that's a good point there are still a lot of formidable japanese companies. >> there are, and yet we act as if they got left behind. >> their market cap combined still doesn't equal microsoft. >> who bought letter x i don't mean twitter who wrote u.s.bought u.s. steel. they had the money. >> they had the most money it's not just the money.

cleveland-cliffs had the money, too. >> why don't you just do that you bunch of clowns. just take it down you fatuous individuals. >> are you directing your hostility at the wrong audience here >> i'm a chiefs fan. >> most people scream at the tv. you scream at the tv from the other side, back at the viewers. >> absolutely. these people are -- i got to tell you -- >> i want to make it clear here, he loves his viewers he's talking about the people selling morgan stanley being clowns and morons. >> curly has got it down five. that' that's schempp's chance to buy it goldman, i'll pay, down four. >> got it. take a look at the premarket here we're going to get to a lot more including discussion about the fed's waller tayod, big speech at 11:00 which might set the tone for the weekend

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breaking news out of washington this morning. for that we'll turn to our emily wilkins. good morning, emily. >> hey, carl how are you doing today? lawmakers have just released a $78 billion tax deal that includes major tax breaks that businesses have been lobbying for for years. this proposal is going to allow

full expensing for research and development, bonus depreciation on qualified property and full expensing for business property. if these sound familiar, all these provisions were part of the 2017 tax law but expired in last law businesses have been pushing to bring them back since. this bipartisan package would also expand the current child tax credit, although not to the level it was at during the pandemic the bipartisan is a result of negotiations between jason smith and democratic senate finance chair ron wyden. in a statement today both of them urged this as a bipartisan measure that's able to pass. both said it would be good for families as well as good for businesses, main street businesses they both emphasized the importance of having these tax breaks in place for american businesses so they can remain competitive with china not everyone is necessarily on board with this agreement. key democrats have slammed this proposal in the last week for

not going far enough with the child tax credit we'll see what they can do wyden says he wants this done before the end of tax season this month it will be a bit of a push it certainly has momentum behind it carl. >> emily, we'll watch that and look for further pressures on the house as well. our emily wilkins today. jim, back in '17, news like this would change the curve of eps forecasts. >> speaking of clowns, do we have any idea -- there are so many parts of the country, we have two countries, we have rich and poor, but they do something this silly they wanted bipartisan i'm embarrassed by our country the tax breaks to businesses. >> you don't agree with these tax breaks >> of course not it's so tone deaf with how rich -- why don't you help small

business, people that got into a jam during covid they don't know. not to be too laughing at everybody. businesses getting tax breaks. business is doing so well, we all should be in business. they do that because they want to show they pass something and they're not abunch of knuckleheads they're so out of touch with the real world, it's really frightening. >> all the way through a tightening cycle. >> they should have been crushed. charge point every -- >> office, commercial real estate. >> we ought to give those clowns a break -- >> they got a lot of breaks in '17. >> exactly fortune 500 there's maybe ten companies doing poorly there's so many people suffering in this country, we've got some weird immigration policy that's making it so there are people camped out at hotels we have no idea how to help

those people, so let's give business a tax break who runs the country >> maybe some caucus people will take that under advisement. >> they ought to at least ask someone who knows business i mean, just ask it's astounding that this is what they do $70 billion bipartisan tax bill. so many people so poor in this country, let's just give it to those guys. >> seems like every dash is mad. >> i'm angry. >> howard beal -- >> i'm mad as hell sorry to think that money should go to the people that don't have a lot of money and not the rich. >> markets trying to juggle all of it. ll'll get a look at the opening be in a few minutes. there's futures going into the first session of the short week. don't go away.

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take a look at early laggards apple in there on news of the price cuts in china. overall, a busy week taking shape between the bank earnings, davos. we'll get fed speak, retail sales and housing data in the xtewne f sessions. opening bell coming up in a little bit listen to and follow the "squawk on the street" opening bell podcast. to duckduckgo on all your devie duckduckgo comes with a built-n engine like google, but it's pi and doesn't spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi

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i think it's about discipline in stocks and discipline in sports if you can pick a good team, you understand leadership, understand what an organization can do same exact discipline in picking stocks, the rigor. although i have to tell you i think the nfl is harder because the way you can keep your job in

this thing, you've got to go undefeated many of the ceos i deal with, they get defeated constantly the billionaire class doesn't know anything about this weather. >> man, that was you in kc of all the games, you got one of the coldest of all time. >> one of the most exciting games. rodney picked me up and i have to go to a chiropractor. i was like a 20 pound. >> dumbbell. >> it was really frightening >> let's do a mad dash you've got 45 seconds. >> so much love for home depot now piper joins the crowd. hold the buy i think this is a great call we're reversing a lot of things that happened last year. i know walmart is ringing the opening bell i agree with walmart as a buy. i spent a lot of time with walmart --

>> you like home depot. >> one of the best cfos i've ever met people should go to walmart. they won't believe the prices. fantastic. cameras in every aisle almost nothing behind plexiglas. >> at the big board it is walmart. [ bell ringing ]. >> jim, a bunch of upgrades. i should say positive comments on consumer-led names. >> i think the starbucks call is interesting. starbucks, let's be really clear about this this is an upgrade by morgan stanley. i want to make it clear, because of pro-palestinian protests in

this country, because they said it's a jewish-owned firm, which was meant -- it was a series of tiktoks were questioned -- bill ford made it clear it wasn't orchestrated by tiktok the palestinian protests have hurt american sales and hurt them badly the chinese -- all the problems we talked about with apple i expect -- so i think the upgrade was very strange because the number of palestinian protests that were -- really hurt store sales here, again, because howard schultz is jewish, this is something we saw once between 33 and 39, i'm not going to say where or when. >> howard shults doesn't have anything to do with this company anymore. >> doesn't matter. it's the same way there were major department stores taken down in berlin in '39, november

9. it didn't matter that they were not actually jewish-run. >> it's really having an impact. >> hurt the third quarter. no one is talking about it it takes courage to talk about it i don't know knowledge. >> so the protesters are preventing people from accessing -- >> well, they also made it so that -- in some cases they trap people in there. it's not been hushed up by starbucks. you can see it if you google it. it has to do with the fact that the protesters believe it's a jewish-run store we had that in another country in a very difficult time and now we have it in america. it's shameful. i don't make the news, i just talk about it. >> just one facet of the escalating crisis in the region, shell this morning suspending red sea transits indefinitely. we talked about the impact on ikea and tesla production in

berlin and some other things. >> if you have to go around the cape -- nordic american tankers maybe every 35 seconds saying this is the time to buy. i'm not going to agree with that nat is a $4 stock. if it moves to five, sell it that's not me trying to hype it. the stocks are going to be worked in. they're very negative for the economy. it's obviously not the issue the company is not the issue it's rogue countries taking shots at shipping. >> it's the houthis in particular in yemen who control a certain part of that country after what's been a bloody civil war there as well. they're incridiscriminately seng missiles all over the place. >> why would you send a ship through there? send those ships around africa, delay the cost, but don't have one shot down. the insurance costs must be just

insane at this point, to insure a ship >> a banker wants me to mention their firm i already mentioned their firm i actually mentioned four m&a firment. i mentioned one that was behind this deal. should we do it now. >> the ansys deal? i think from cannonsburg, the western part of pennsylvania other than hall med is there anything left in pennsylvania? >> synopsys buying ansys it's one of the more important stories of the morning what is that picture >> look like a million bucks in that picture. >> is that what i look like now? >> i thought you looked fantastic. >> from the angry man onset here synopsys responding quite

positively but ansys ansys shares are down. this has been telegraphed for some time. news outlets have reported on the possibility that this deal is coming. it started because cadence designs made the first four right, came out ansys, put them in play is the way we put it i'm neat clear on how hostile it was. it was unsolicited it provoked an sisys to say, al right -- it resulted in bids from cadence and siemens, ends with the deal with synopsys. it's worth about, let's call it, 370 on the market. talking about 400 million run rate cost synergies, talking 400 million run rate revenue synergies four-year post close you see it right there they're taking on $16 billion in

debt to get this deal, the cash portion of it. they are increasing their indebtedness, but talking about getting down to as low as two times adjusted ebitda. they need china approval, and that may be one reason why you are seeing a fairly significant spread between ansys' current stock price and what the deal is worth. you had the two cover bids we can suspect this is the highest price they could get the two companies have a seven-year partnership already jim, what you want -- i'm trying to explain, what is this all about? you have a brand new ceo, just took over january 1 at synopsys, not typical for a brand new ceo to do a $30 billion deal we'll know more when the proxy came out but that cadence put it in play. they get the deal done

they simulate a lot of things at this company most importantly, and where the overlap is for 30% of their revenues, they simulate the performance of, let's call it, chips, which get more and more complex every day. ansys has what they call world-class simulation and analysis capabilities, and they say that will enable to combination to provide a seamless silicon system innovation to maximize the capabilities of technologies, r&d teams across a broad range of industries. you want to understand how something is going to work, so many different things, simulation becomes very important, but not at the end. you need it throughout the process. you need to integrate it essentially into the entire work environment that is producing these chips. by the way, they don't just simulate chips, they simulate all sorts of other things, including, for example, a formula one car, they simulate the wind tunnels to see how it

would perform. they simulate what the noise would be from a fan for heated seats in a high-end automobile that's 50% of their business that doesn't overlap at all with what synopsys does there's an energy business as well, simulation and others that make up the rest of the revenue pie over at the company. again, a company we've rarely ever spoken about gets sold for $35 billion in cash and stock this morning. >> incredible, you mentioned another bidder synopsys and cadence are considered to be maybe the most important ways to play ai, and they never even talk about it. cadence is the wrapping of it. that's something we're worried about with china synopsys is a fantastic company. i don't know why they needed to do this. but they're smarter than i am. >> maybe they felt like it was an asset they couldn't let pass. these two have had what they call a successful seven-year

partnership. obviously that may have been one reason why the ansys management team felt comfortable. don't know the cover bid prices from kad deposition, and i believe siemens also bid we have to assume they were less china approval needed. there's always worries about that on the anti-trust front, it doesn't appear this will be a big issue. they're going to have as much as $2 billion a year to spend in r&d which will be the largest single budget, it's my understanding as well. >> i think this is a deal we have to follow because i think secretary raimundo does not want these companies to do as much business in china as they're doing. this is a good opportunity for the chinese to show whether -- that a broad come deal can extend that. >> always is concerning because of the relationship between our two countries. nothing on the antitrust front -- i think it's 5% of the business in china.

the ceo of synopsys, investing in ai and cloud solution which underpins everything we do another huge benefit to the transaction. >> not a press release i had cadence on during that seminal cnbc conference and cadence spoke directly to their competitors. >> speaking of ai, we haven't touched on elon musk's comments about how he would like more voting control before he starts investing ai into tesla. >> i'm trying to remember a ceo who tried to get more stock because he wanted to have more -- i don't know >> the google -- zuckerberg, the voting control -- >> that's a good point. >> which he addressed, he talked about. he wants control over the ai developed in house there, various forms. now again, 25% is not control,

but it kind of gives you what you almost call negative control. it's hard to get anything done without essentially. he's at 13% right now. remember, he sold down he had as much as 22% ownership. >> 100 million shares. >> to fund the twitter acquisition. unclear what that means or whether he would conceivably -- and i think this is the threat he says he's growing uncomfortable about it -- move the ai efforts out into a separate company in some way becausehe would have more control. there you see it, tesla is not one startup, it's a dozen. look at the delta, what we do here he goes on to say something about showing up for work. >> right >> meanwhile, optimist, i like to keep an eye on the robot. it can now fold shirts. >> it can?

>> yes, fold shirlts we may have video of optimus folding shirts. >> this is about as high tech as it can get i can't fold a shirt to save my life. >> it can do what my wife can do holy cow she's out. >> that's one of the more sexist things i've heard -- >> when is the last time you folded a shirt, jim? >> i did packing i folded a shirt and then they lost my bag so it really didn't matter. >> there you go. thank you, optimus move on now to please clean the bathroom. >> yeah, a little skrup. that's really impressive. >> to carl's point, you saw deere and star link, a separate company, controlled by musk and not a public company, they're using star link for -- i didn't know their digital efforts were so significant.

>> yes alcoa has something similar. this is because there's a shortage of farmers. you want a joystick. i know you've never farmed, david. i have you just go up and down and up and down you're trying to keep your mind on the work. it's all very hard. >> a huge tool for yield management, as they say. >> you can't get people to do that stuff. >> on top of the discussion between musk and the board on ownership structure, a lot of notes here this morning. jim, it's wells. will pricing pain start in q4? they expect tesla to miss q4 they're in line, rivian, but below consensus on the other legacy oems. >> look, that group is troubled. i thought when you say a pivot away from the expensive ev losses to ford, i thought that would be -- remember, there are 47 years straight the f-150.

i also felt they got a great hybrid offering and making a lot of money on it it doesn't matter. people decide the cycle is over there. >> and that's it >> yeah, that's it the cycle is over. that's how the street works. like six cuts. we're not going to have six cuts. >> you think your general tone today would be different had the eagles won >> no, i'm a chiefs fan. >> longtime chiefs santa. >> you're a reid fan. >> andy reid mentioned me in his postgame press conference. i have not gotten that kind of high sign from a coach -- >> the game, jim, was the most streamed event in u.s. history, 23 million viewers largest usage of the internet at 30% of web traffic we don't know how many peacock

signups we got it was flawless. >> it was flawless we're hoping it was a lot. >> look, i was out there >> you can get a discounted price right now. >> i thought it was amazing. i sat behind paul rudd comcast is down. i'm not going to say sellers are fatuous morons i'm just out of that game. i'm going positive. >> of course, there is that question of internet usage the fact is comcast is behind the broadband that delivers the signal john malone saying, hey, whyt at more money to deliver when the capacity to deliver these kind of broadcasts is enormous and strains the ability of the broadband providers? >> if you're not some of the magnificent seven, your stock is kind of -- the microsoft notes

were such suck-up notes. this is the greatest -- they have something to talk about they have ai you can have the copilot yourself. >> the best performer this year by far is nvidia jim brier on our air earlier, talking about nvidia very positively >> i check in with nvidia pretty much every day because i lose in draftkings, check in with nvidia. >> brier was talking about the software, how important it is. >> the stock is selling 27 times extra earnings i'd rather be in that than any other stock. >> a mfrjsd leading the s&p right now. upgrades of nxp. upgrade of qualcomm on friday. there's some excitement around semis. >> something is clearly going on because that thing has been a complete bow wow i think that's very positive i think something is going on, you just don't have two upgrades

like that. >> how am i doing these days when i question why you own boeing, you sold boeing. you blame me for selling boeing. now boeing is down a lot, down another 4%, for fears that perhaps cheen nah will not follow through on what had been seemingly clear orders. >> it's a revenge trade. it's going down. i'm going to win the trade i am going to win that the stock is going to go back to where i sold it. we can start all over. i'll buy it. you have a whole carry thing going when john travolta dumps a bucket of blood. they're all going to laugh at you. >> that's year-to-date, down 20%. >> the stories are so negative you'llv people in there second-guessing everything >> now we have this audit by the faa. wells today say it's feasible that that could expand in scope. they go from 280 to 225 andcut

to equal weight. >> you know it's an inventory -- if they got the inventory down from the max, they'd start making a lot of money, and it couldn't come at a worse time. >> they have planes that have been sitting waiting to be delivered to the chinese that are not this model, by the way, for years now, that are now going to be once again safety inspected in some fashion. >> did you see phil's interview? >> i did >> emotional emotional interview because -- well, i don't know it was emotional i'm trying to get the apple guy for the 16,000 foot and still works, trying to get the guy on. >> whose phone dropped out of -- >> no, the actual engineers who did this i've got to deal with the masimo guy who is so busy ripping off the blood pressure thing he got away with. >> find the engineers that allowed the phone to be dropped from 16,000 feet. >> i want to tell the analysts who are saying china is going to

kill it, i want to ask do they know the country in population size after the u.s., how well it's doing for apple who is it, david, next biggest country where apple is crushing it that we'll all be talking about? >> india. >> no. >> indonesia. >> indonesia. scotus declined to hear th epic suit. we have that as well watch bonds this morning we have a dip in yields after the empire print down to 412 we bounce back to 4.02 don't forget waller's speech at 11:00 a.m. eastern interesting piece about the fed tiptoeing toward dialing back qt we or back in a moment

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good tuesday morning welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber and mike santoli at post nine of the new york stock exchange sara eisen is on assignment. got weakness to start this holiday shortened week as we wade deeper into earnings season with the banks, davos, the red sea, deflation in china and important fed speak coming up. >> we are 30 minutes into the trading session. here are three big movers we're

watching more earnings from the big banks. morgan stanley and goldman sachs on the move after beating estimates. morgan stanley down about 3% goldman just above the flat line we'll break down those numbers later this hour. boeing downgraded to neutral by wells fargo. it comes as the company plans to add more quality inspections for the 737 max as well as reports today the long awaited delivery resumption of 737 max jets to china could face fresh delays. boeing off almost 6% on the deal front, semiconductor design and software firm synopsys announcing plans to acquire ansys in a cash and stock deal valued around $35 billion. meantime your read on the markets as we try to get -- coming off ten positive weeks in 11 and every sector red, financials and materials not helping. >> last week's gain probably overstated the underlying strength there we really have been in hangover mode coming into january

the way i've been thinking about it is, the rally in the last couple months of 2023 raised the market's pleasure threshold. everyone pretty much got on board the soft landing idea. most of what we're seeing is routine kind of digestion and pull back in that context. a couple things to flag. everyone applauded the broadening move of the market in the latter part of last year russell 2000 finally blasts off from relative lows, multiyear lows, compared to mega caps. that has backslipped quite a bit. the russell down 1% again. russell has given up half of its out performance versus the nasdaq 100 that it had built up over the prior six or eight weeks. you have to keep that in mind. i don't think that's make or break for the market it seemsto me s&p 500 can keep chopping and pulling back for like 4600. it's down 3 or 4% from here and still completely be, you know, in routine pullback mode that being said, i do think that any deviation from the soft landing script is what we're sensitive right now. bond yields are lifting off the

lows good news is good news because inflation is very much i think has great conviction it's going in the right direction but that also means that bad news is bad for the tape, i think, even though everyone is focused on a march initial rate cut potentially and maybe the fed has to push back against that. to me it's about if the economy holds up you're probably fine with waiting. >> this has been your long-standing view there's no fed cuts because the economy is worsening is not real. >> we're not at that moment. we're not at this point where everyone thought we were overheating and now we're, you know, cooling to cruising speed. at this point there's enough late cycle sensitivity out there that if we really wobble on the growth side, consumer cyclical stocks have sort of suffered in the early part of this year, so there's some concern being expressed about the resilience underlying i don't think it's like a fire drill. it's not a big deal. but it definitely shows you that it's a relatively narrow path still that we have to -- i think big picture, though, s&p flat

for two years. we went through a whole fed tightening cycle and an earnings dip that's now on the upswing again. it's not as if you have the makings of a market that looks like it's really topee, and then you haven't had any ipos and deals are starting to percolate a little bit bull markets you get another act before you really have to worry about it being something really consequential on the downside. >> and when you mention earnings, give me a little more granularity on that in terms of what i guess is a positive take on what we're expecting. we're in the early stages. >> it's positive directionally and i think you're going to be able to say we hit the earnings trough in the third quarter of last year. how much of a comeback do we see and broad based is the comeback. fourth quarter numbers really got shot back heavily like 6 or 7 percentage points of anticipated growth from september 30th is gone so when companies are going to be beating numbers in the next few weeks it's off that base

it's matter of what the second half of this year or the latter part can deliver in terms of earnings i don't think it's a particularly huge hurdle if we have to go -- if we grow at 5% earnings instead of 8 or 9 not a big deal for stocks. it is where the gains are coming from, obviously, the big tech trade and then things like pharma, you know, stuff that was really depressed last year, merck and pfizer had multibillion dollar charges last year and not going to have them presumably this year magically you start to get earnings growth from health care. >> merck shares up 9% for the year already having a nice start. >> health care is an early favorite. >> yeah. let's continue the market conversation our next guest thinks the risk-reward for equities is squad positive for the year. research ceo adam parker joins us now a rare appearance not with us, and we miss you. we've been talking earnings with mike and it's something we've discussed often times. i'm curious, my recollection is you are not particularly sanguine for earnings growth in

2024 is that still the case and if not, why not? >> we're using a few percent growth you have a good memory we think the earnings will grow. we actually raised our numbers by 5% from a year ago. almost all of that was driven by the biggest 20 or so companies which has shown an incredible ability to expand their net income the reason i'm positive, i think the skew on equities is positive, is three fold. one, i do think the average company can have gross margin expansion and i think that usually is associated with equities going up. two, i think there's a reasonable case to be made that there will be some accommodation from the fed and/or other big central banks later this year. and i don't know if i've learned that much in the last 30 years, but i think one of things i've learned is don't fight that. the third thing, maybe earnings could grow many years in a row, and little bit like 2011 when

things looked expensive, multiple years of an earnings growth we think equities are attractive i can see the skew being more positive and we've been out marketing our outlook, gotten enough pushback we don't have, you know, total consensus views there. >> what changed then i can remember conversations we had earlier in 023 where you were not looking for any dwgrowh over a two or three-year period in terms of earnings >> we thought maybe '24 could be with '23 be and all of that is driven by the biggest companies and i think a little bit of trough in gross margins for the average company. a lot has to do with the change in cpi there's a significant change in relationship between the changes in cpi and forecasted gross margins for the median company if you get less inflation, the average company could do better. the big companies it doesn't matter they could pass on pricing and they're good at absorbing cost

the average guy looks in better shape now too. it's not like i'm an uber bull on earnings. i think they can come down some but mid-single earnings growth this year better than i thought a year ago. >> you mentioned 2011, which is kind of a hopeful moment and you were also flat for two years at the low in 2011 versus, you know, the first rally off of 2009, but you mentioned things looked expensive then. i think we were in the low teens in terms of a p/e on a forward basis for the s&p 500. how does that square >> you know, it's more you can just be concerned and if earnings go up -- what makes equities work in the middle of this year we think earnings are higher in '24. by the end of this year they look ahead at '25 and you look at the upside and need to justify. right now to get 5200 s&p or 10% plus upside you need to pay 20 times 25 earnings at the end of this year. maybe that starts looking more

attractive as you go forward i think it's that kind of logic. you remember 2011 everyone thought earnings were going to be impaired and there was a combination and things weren't the struggle i have when i look at historical accommodation from the fed is it always came in a crisis or at least in the last 25 years, right, t and t bubble, covid, this doesn't feel auto anything like that maybe you get a bit of a tweaking from the fed. i don't think they're going to cut near as much as what's in the price, but i think directionally, they're more likely to cut than hike, and that's generally been supportive of equity multiples. >> adam, real quick, any of your gross margin expectations based on productivity as a result of ai or is that still to come? >> definitely productivity the personal from ai is still low. you normally get productivity when companies try to cut out costs and i think ultimately the ai cost cutting is a decade long

theme. you probably won't see a ton of that in the near term, but, you know, i think you're at the beginning, and i'm excited about that i think it's also -- we'll see what happens in the red sea but logistics and transportation costs and currency and commodities. a number of things that will be less headwinds for the median company today. >> all right adam, we'll leave it there but pick it up soon again. thank you. >> see you soon. have a good day. >> as we head to a break a road map for the hour "squawk on the street" heads to davos and an exclusive interview you will not want to miss with the secretary of state antony blinken and his first remarks since the trip across the middle east last week and the elections in taiwan. >> more bank earnings today. this time from morgan stanley and goldman sachs and pnc. what investors need to know. >> a big weekend for the nfl on the streamers. saturday's chiefs-dolphins games setting records. nfl super agent drew rosenhaus will join us to discuss all of that when "squawk on the street" continues.

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. welcome back to "squawk on the street." the world economic forum under way in davos, switzerland. andrew ross sorkin is there and got an exclusive with the secretary of state, antony blinken. >> want to thank the secretary for joining us today it's great to see you. >> good to see you, andrew. >> this is your first interview since a lot of things have happened the taiwan election results have come in, the tax on the houthis

in the red sea and the conclusion of the ten-day stop, here in davos, president of israel is on his way here. the premier of china is here you have president zelenskyy of ukraine here we want to touch on all of these component parts. you just got off a plane this morning here what is your ultimate goal in terms of coming to davos and what are you trying to do? >>. >> first, when you went through the litany of things it shows you why for better or worse we're in a growth industry these days in davos it's a convening point. you have leaders from the world coming here, including from many of the places you just mentioned. you, of course, have an extraordinary showing from the private sector critical partners in so much of what we're trying to do around the world. to have everyone in the same place, same time, not only convenient, but it also creates some really interesting, what's the word, synergies, just bringing people together in interesting ways davos is a great place to do

that. >> let's go down the list of maybe crises or big hot topics discussed here starting with u.s.-china relations. as it relates to the taiwan election new president in place you came out with comments congratulating him on his victory. what do you believe it means for the u.s. and china right now does it up the risk that something is going to happen it >> means a few things. first and foremost, we congratulated the president elect but the people of taiwan on their robust democracy and the great example that sets not just for the region, but for the entire world when it comes to taiwan itself and when it comes to cross strait relations we've been focused on one thing and one thing intensely with many countries around the world -- peace, stability, no change to the status quo, the peaceful resolution of any differences. there's a reason that matters, and it matters to virtually everyone in davos. you know this. 50% of the world's commerce goes through that strait.

the semiconductors made in taiwan are powering the world in every conceivable way. if that's interrupted or disrupted it's bad for everyone. >> let me then ask you about what has turned into war of words. you congratulate him the china foreign ministry spokesman saying your comments quote save a gravely wrong signal to the taiwan independence separatist forces we strongly deplore and oppose this and have made serious representations to the u.s. side what do you make of that >> as it happens, i met just a day before the election with a very senior chinese leader in washington this is one of the questions that we focused on we've made very clear what we stand for it when comes to taiwan and china first we've had a one-china policy for one time that remains our policy and won't change, and we've reaffirmed that. at the same time as i said, we are standing resolutely for maintaining the status quo, peace and stability. china has to make decisions about what it will and don't

i think the approach they've shown in recent years has been counter productive to their trz by trying to exert pressure on taiwan, economic and military pressure, diplomatic pressure, isolation. it's only reinforced many of the people that they don't want -- >> the message is getting confused because after you congratulated him president biden was asked about the election as well, and he came out and said we do not support independence, to the one china policy at the same time we're saying democracy is great but actually independence is not? >> that's been our policy for as long as i can remember, and it remains our policy again it's the policy that insures to the best of our ability that we have peace, stability, that we don't have a status quo that's disrupted in ways that will have repercussions. >> what do you think the risk is that there is a takeover president xi said he ultimately wants to bring taiwan fully into china. i spoke with the prior president, maybe still the

current president, but just last -- just last year at the conference and she said that she didn't believe that the chinese could pursue a takeover given their economic challenges today. do you believe that's accurate >> look, i'm not going to speculate or get into hypotheticals. i can tell you what we're focused on which is maintaining peace and stability. we've been clear with china about that and clear with taiwan about that that's what we're focused on at the same time, we have a big vitally important relationship with china it's probably both the most complex and arguably the most consequential of any relationship we have we're also focused on that. >> let me ask you, we've been talking to ceos here including folks who make chips, intel, qualcomm, and so many others we are -- we have a big effort in the united states to try to bring manufacturing back to the u.s. ultimately by 2030 chip independent. if and when that happens, does taiwan become more or less

strategically important to the united states? >> well, first, you're exactly right that we have a major effort under way and one of the major achievements of this administration of president biden has been this investment in ourselves, including notably with the chips and science act to make sure we have that manufacturing capacity here. look, this is going to take some time taiwan remains vitally important when it comes to chips as i said, beyond chips, 50% of the world's commerce goes through that strait every single day. that's not going to change. >> it will always be strategically important. >> always be important. >> are you planning to meet with anyone from the chinese delegation here? >> i don't think we're crossing over, but we had a senior chinese official in washington a couple days sflig are we supposed to read anything into that they have a big delegation here this year. >> we had one of the most senior foreign policy people in washington, extensive meetings with him, i did, jake sullivan did. we'll continue to do that. since my trip to beijing this past summer, we've re-engaged at

every senior level, most importantly, between president biden and president xi that engagement continues. it's important that we have this ongoing, high-level communication. first to make sure that we avoid any miscalculation, miscommunication. >> do you think there's better communication? people will say they're in the same town together, why aren't they meeting >> look at the track record over the last six months. the trip i made and many members of the cabinet made, secretary of treasury and commerce, john kerry. president xi and president biden. after that meeting in san francisco which produced real results good for the american people in a number of ways, we're continuing that. that effort will extend into this year. >> let's pivot to a number of other crises that are taking place around the world the red sea, let's talk about the latest there because since the u.s. and uk launched those joint strikes against the houthis -- houthi targets in yemen there have been a number of attacks since. how successful was that attack and what does escalation look

like to you? >> first of all most importantly is this, we've not wanted to see escalation since october 7th we're working every day to prevent it including in the red sea and when the houthis started these attacks, we pressed very hard for them to stop, but without escalation of any kind the reason it's so important there is this, here again, 15% of commercial traffic is going through that strait every day. 30% of the world's container ships. we're seeing international repercussions for these attacks. thousands of ships have had to reroute, go and move around and away from the suez canal it's adding costs to everyone. insurance costs are going up, shipping times are going up. that means ha whatever is being shipped is getting expensive this is an attack on international commerce and shipping, not an attack on israel or the united tates that's why more than 40 countries came together to condemn what houthis are doing and what other countries came together to say if this continues there are going to be

consequences, not for purposes of escalating but purposes of getting them to stop. >> you were just in israel the president of israel is coming here. you've spent time with netanyahu as well. when you talk about trying to eradicate hamas but at the same time a push clearly to help and have targeted strikes so they avoid citizens, do you believe you can eradicate fully hamas without a citizen and innocent casualties >> what we're focused on is trying to make sure that october th never happens again that should be the bar and the measure. israel has made good progress in doing to hamas what needs to be done so that it can't do october 7th again. that's what israel should be focused on and what we are focused on at the same time, we've said from day one how israel does that matters vitally, and that is especially true when it comes

to citizen casualties, far too many palestinians, innocent palestinians have been killed, an for those who are living in gaza, they're in a very, very difficult dire situation we're trying to get much more humanitarian assistance in to them. >> since your visit, netanyahu said the following, he said we're continuing the war to its conclusion to total victory. no one will stop us. what do you make of that is that a message to you and the united states? >> i can't speak for the prime minister i can just tell you that from day one, we strongly supported israel's right to defend itself and strongly supported its right to ensure october 7th never happens again. at the same time we want to see the conflict come to an end as quickly as possible and until it does we want to see everything possibly done to protect citizens and get assistance to those who need it. too many people are suffering in this conflict and we're trying to do what we can to alleviate that suffering. >> there is a divide around the country and world about how the israelis are going about this

and the support for it including inside the white house itself with members of government walking off the job. i want to read you something speaker johnson tweeted out in the past 24 hours. he says any government worker who walks off the job to protest u.s. support for our ally israel is ignoring their responsibilities and abusing the trust of taxpayers they deserve to be fired what do you think of that? >> i can speak for the state department we've had a number of people if the department since october raise questions, raise concerns, raise criticisms of policies policies that israel is pursuing, policies we're pursuing the kind of place that i want to v the institution i want to have, is the place people feel comfortable doing that we have something called the dissent channel that allows anyone in the department to raise a concern. we've had a number of those. i read every one. >> walking off the job, fireable >> i want to make sure that people feel that they can say

what they believe, express themselves - >> do they have to get behind the position of the state department >> they ultimately have to be on the job and do their jobs. but the main thing is this, people feel the need to speak up and speak out. that's -- that's a cherished part of our democracy. it's a cherished part of my view of patriotism. people need to be on the job and do the job look, we see this across many administrations. their policies the administration is pursuing individuals object to in the way they can't continue to work, that's their choice. they have to make that decision. >> let me ask you about two-state solution in israel you've been working hard on that and starting to think about what things might look like on the other side there's a lot of folks getting on board with you, netanyahu is not yet there yet, as are a number of folks in israel itself in terms of the trust that israeli people have to have

about their own security, do you imagine a two-state solution that doesn't require some period of time where there is, for lack of a better word, an occupation of the palestinian area for a period of time, to create that or do you think that undermines the trust of both sides? >> first of all, there's an incredibly powerful equation for israel's future, and its security and it's this, it's different than anything we've had until past, unlike any time in the past, virtually all of its arab neighbors, muslim neighbors, want to integrate israel into the region and prepared to give it the security assurances and guarantees they never would have given in the past they're equally committed to a pathway to a palestinian state because they believe and we believe as well until that question is resolved, you're never really going to have peace and stability and for that matter, israel is never going to

know security. when you put together integration in the region, israel's normalization of relations with every country, security assurances and commitments and a palestinian state you've created a new region and israel's biggest problem, for us as well, iran, is isolated and a answers that problem powerfully as well israel is focused on gaza, on october 7th, but when that ends they have to make fundamental deci decisions about their future there's a new equation that more -- in way that was never possible in the past, is possible now. >> do you need a new leader of the palestinian authority to do it >> you need governments and leaders that are prepared to make hard decisions. >> is the palestinian au thorlgts the right ruling authority and the person in charge of that palestinian authority the person you think can bring this together? >> we've said that we would

welcome -- more than welcome -- we need reform to the palestinian authority to make sure it's delivering for its people. >> it means a whole variety of things the palestinian have to decide that for themselves. a number of other leaders -- >> do you think the palestinian people are prepared to do that >> i think the palestinian leaders, month the people, what do they want they most want effective governance that can deliver. that requires two things it requires in and of itself effective governance and requires israel to be supportive of a palestinian authority so that it has a chance to deliver it those two things need to come together. >> how far away do you think they are on that >> right now in the middle of this conflict, it's hard when plunged into that to see that future, but it could be on us relatively quickly because this conflict will end. and when it does, decisions have to be made you're in place right now where, again, arab countries, including

countries like saudi arabia are prepared to do things in their relationship with israel they were never prepared to do before that opens up an entirely different future but you have to resolve the palestinian question arab countries are saying look, we're to the going to get into the business, for example, of rebuilding gaza. only to have it leveled again in a year or five years and then asked to rebuild it again. we've got to get to the fundamentals and in erms terms of israel's security the arab piece and the palestinian piece, that's the way to true lasting security. >> let's pivot to the issue of ukraine. you spent time with president zelenskyy in davos this morning. what did you talk about? >> oh, skiing. no, we are focused on the ongoing aggression in ukraine. the russians launch missiles at ukrainian infrastructure, citizens, apartment buildings. we talked about two things we're focused on making sure

that ukraine has what it needs to get strongly through this next year. >> does it have enough >> we need to do two things. we need to make sure with congress we get the supplemental funding that president biden has asked for. we're working hard on that i believe there is bipartisan support in both houses. >> what happens if it doesn't? >> there's no magic pot of money. if we don't get the money it's a problem for ukraine. i think it's a problem for us and our leadership around the world. here's the thing of that money that we're asking for, $50 billion gets spent right back in the united states on that money to procure items for ukraine's defense is made in america, american jobs. we have our allies and partners around the world, we're providing them the majority of the support to ukraine more burden sharing when it comes to ukraine than any other instance i can remember in the 30 years i've been doing this. this is a common endeavor. right now russia continues to

suffer strategic failure in ukraine. we have a strong interest in making sure that persists and if we let putin get away with this, if we drop our guard and everything we're doing for ukraine, then you open a pandora's box and he will not stop with ukraine and others other would be aggressors will take the lesson. >> i think he would go full tilt on ukraine and then nato countries and if he attacked a nato country we have an article 5 obligation under nato to work to assist them and that would bring us indirectly. we want to prevent that. one last thing so important, this is not a forever war, and it's not a forever expense for us either. even as we're helping ukraine in the moment to defend itself, working with dozens of other countries, we're working so that ukraine can stand strongly on its own two feet militarily, economically, democratically private sector investment. former secretary of commerce pritzker leading the private

sector investment came back from ukraine with a delegation of ceos and there's tremendous unts there. we're helping with 30 other countries to set them up with a force for the future to deter aggression going forward and the reforms they're pur seeing, they have to pursue to get into the european union and attract private sector investment. put those together and you can see a ukraine that not only survives but that thrives. that's the best answer to putin and for us because it means they will be on their own two feet. >> we talked about a number of issues around the world you're dealing with now i'm curious if you look at them and think of them as all idiosyncratic on to themselves or think that united states, our role and influence perhaps diminished influence, has impacted and helped create these moments. you've heard critique about that. >> look, here's what i've taken away from about 30 years of doing this one, when america's not engaged, when we're not leading, one of two things, someone else is and

maybe not inway that advances our interest and values or maybe just as bad no one is and you get a vacuum filled by bad things before good things. what i'm hearing around the world everywhere i go is, a thirst, a hunger, desire, for our engagement for our leadership but that also includes - >> the colorization in washington and the dysfunction in washington -- >> we've done two things those challenges and in this job i don't do politics back home. two things have been powerful and that put us in a position of strength that we were not in recent years one as i said we made investments in ourselves the chips and science act, infrastructure act, ira. all are resonating around the world because people see we're serious about our future second the first thing i was asked to do by president biden was to roll up my sleeves and have everyone at the state department do the same thing, re-engage our alliances and partnerships rejuvenate them and reimagine them in some cases it's those relationships, those partnerships, that are so vital

because as our leadership is essential, finding new ways to cooperate with others is more important than it's been we're doing that we have more convergence now, andrew, with europe, with asia, on how to deal with putin or how to deal with the challenges posed by china. >> one of the things weighing over this meeting and a lot of conversation of what's going on in the united states and in iowa and this being an election year, what do you think happens if former president trump becomes the president when it comes to all of these issues you're talking about internationally? >> as i said i don't do politics. i do policies. what i'm focused on is trying to pursue the best possible foreign follows advance the interest of the american people. that's what president biden asked me to do and the entire team. that's what we're doing. we're talking about china earlier. one of the agreements that came out of the meeting with president biden and president xi we worked on for months and the president brought over the finish line was an agreement from klein to work productively with us to deal with the number one of killers 18 to 49 is

fentanyl we have china cracking down on the precursors that get shipped around the world and turned into fentanyl that's making a real difference in the lives of americans. >> secretary blinken with andrew nice nuanced conversation about the challenges america faces, china, taiwan, israel, hamas, ukraine, russia. mike, s&p is up 500 points since october 7th. >> yeah. i mean it's funny. goldman sachs surveys of investors said more than half thought geopolitics is the one thing that could knock the economy off course more than others the market is not giving a whole lot specific to react to on these fronts you're benefitting from the oil supply numbers really not creating that to be a trstress point and the shipping costs from the red sea are off a lot nothing compared to what we've daughters with in the supply chain crisis and covid qualifies as a few lucky breaks as far as the market is concerned. >> yeah.

listen increased communication is something that blinken cited with china certainly we though that the relationship continues to be a difficult one. that's one the market continues to focus on not just a result of what's going on in china and the economy and how important it is with the inflation as well and how much it devolves from here. >> some resilience in stocks holding on to 4780 or so dow off the session lows we'll talk about the banks, break them down as investors get these report cards out of morgan stanley and goldman. headlines from their conference calls as well. after break. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley.

goldman and morgan stanley shares headed in opposite directions post results. goldman's conference call wrapped up leslie picker was listening in and joins us with some of the headlines. >> as you mentioned the call just wrapping up shares back into the green ceo david solomon's comments ability banking activity says it broadly feels better and turned the shares around >> the level of strategic dialog

has definitely increased we're seeing it across the platform you know, i'm encouraged by capital market activity. i'm not going to say it's running back to 10-year averages right away but it has improved and you will see more meaningful ipos in 2024 and we are in debt and equity issuance seeing more activity and engagement. at the end of the day people had done funding that takes them out for a period of time, but they have to start thinking about their capital structures and accept the reality of the market and we're seeing that come through. >> goldman's global banking and global markets saw a dip in the quarter with net revenue of that division down 3% and that was a bit lighter than consensus m&a advisory dipped 29% with fewer completed deals in the quarter. as you mentioned morgan stanley concluded its call about an hour ago. this was ted pick's first call as ceo, a role he took over two weeks ago. he said he remains, quote,

generally constructive about 2024 for both arms of the firm, although analysts have described the fourth quarter as kind of just okay and that's reflective in the stock reaction you see, down 4% right now. in the fourth quarter there was a slowdown in net new assets into the wealth management division, leading to lack of revenue to that group. investment banking revenue was up 5% at morgan stanley and the cfo tells me that backlog is, quote, a bright spot as they look forward guys >> thank you we'll be keeping an eye on morgan stanley and goldman sachs. as we head to a break, let's check out what are the biggest losers on the s&p thus far this morning led by boeing and that has been worsening as the session has gone on. down 6.5%. continued safety concerns daem from china we'll have more on movers you may have missed. not you.

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index is largely recovering from early losses. s&p 500 is nearly flat and nasdaq has turned positive chip stocks helping out on the s&p. dominic chu with more on what's moving. >> headlines on three dow components a and chip companies. boeing, the aerospace and defense, dow component is down just about 7%. analysts at wells fargo downgrading the stock to ap equal weight from overweight and cited ongoing regulatory scrutiny of boeing's production lines. fellow dow component apple is lower in early action has a slew of headlines out this morning including its decision to discount iphones models in sale in china and smart watch models to comply with bans over patent disputes deutsche bank analysts have reiterated their buy rating. sticking with tech, nxp is moving between gains and losses up 1 to 1.5% in the chip trade

barclays upgraded to overweight from equal weight. another dow component home depot with analysts at piper sandler upgrading the retailer to an overweight rating. the shares up 1% an end of china focused funds with the hang seng to fresh lows for the year the etfs that closely track some of those moves now, again, over one-year period, still moving lower. we'll keep an eye on those china etfs send things back over to you. >> thanks. dom chu. still to come this morning, nfl wide card weekend setting records as millions tune in to watch the chiefs beat the dolphins the live stream event in u.s. history. we'll break things down with drew rosenhaus in a minute

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the two things i would say or three things, one is that the industrial economy continues to remain soft. it's been like this six quarters the consumer spending reset to where it was before the pandemic the entry levels or the destocking phase of entry level seems to be over and the restocking phase has yet to begin. we're in that phase right now. >> the ceo of fedex with sara eisen this weekend talking consumer trends at the national retail federation conference part of an interview you will get more of next hour on money movers after the break drew rosenhaus's take on the nfl games, the mbanmi record-breaking streang nuers d more don't go away. unlocking the power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization.

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i think he's having a midlife crisis formulationi'm not.oisturizers and 3 vitamins. you got us t-mobile home internet lite. after a week of streaming they knocked us down... ...to dial up speeds. like from the 90s. great times. all i can do say is that my life is pre-- i like watching the puddles gather rain. -hey, your mom and i procreated to that song. oh, ew! i think you've said enough. why don't we just switch to xfinity like everyone else? then you would know what year it was. i know what year it is.

wrapping up the wild card weekend for the nfl, saturday night's chiefs/dolphins peaking at 25 million viewers on peacock. the game accounted for 30% of internet traffic in this country and did top last year's saturday night wild card ratings by 6%. drew rosenhaus joins us. what a weekend i hope you don't mind me starting on some of these streaming landmarks and what that means for the future of nfl

distribution >> well, that's my word, wow i mean, the nfl is just so hot 55 of the highest -- the highest rated programs last year were all nfl games. and they dominate. now they're dominating streaming as well with peacock and amazon. you know, the nfl's got deals with google and youtube and amazon now and all the major networks guess who's sitting outside and wants to play? apple. apple's got to get on this, obviously, in the future this is great for the international market, which the nfl is tapping into big time the numbers were staggering. hey, i put down the money that -- to subscribe to peacock so i could watch the dolphins. i was at the houston texans'/browns game and i wasn't going to miss it

that was the only way to watch it, my cell phone, ipad. the nfl has done an incredible job of breaking in every major media market that we can think of >> i wonder what you make of the threads that are making their way through the league coach turnover, turn-around stories like houston and detroit. what's most interesting going into the postseason? >> wow again you nailed it. who would have ever thought in the past week icons like bill belichick, nick saban, pete carroll wouldn't be coaching with their teams right now for a variety of reasons and then i go back to the beginning of the season. if you said to me, as the 36-year veteran agent that the rams would make the playoffs, that detroit would be in the second round, a host of playoff game and win for the first time in 30 years, that green bay would be in the divisional playoffs, the buccaneers would be in the divisional playoffs, upset juggernauts like the cowboys and the eagles, who were

dominant all year long it's been an incredibly dramatic and surprising season in the nfl. all of those teams shocked the world. i don't think anyone expected green bay to win or tampa to win. i mean, those are major developments and great for the game, obviously. because farnz all over the country get to see teams they didn't expect to do well have great success this year. >> drew, definitely some surprising winners, i suppose, but also there's only one close game over the weekend. what do you make of general criticism that maybe the quality of play was in a lull for this season maybe it was quarterback injuries the viewership numbers speak for themselves maybe the nfl is immune to quality issues, but what's your thought on that? >> well, i think the games were extremely entertaining overall this year. there was a lot of parody, there was a lot of competitiveness, but i do agree this weekend the

games were a bit lopsided. for example, i went to two games, the browns and texans that was a lopsided game, as was the game that i attended last night, tampa hosting the eagles. certainly the dolphins and the chiefs wasn't as competitive, as a lot of people anticipated. i think the weather had a lot to do with that as well and impacted the bills/steelers game the arctic front certainly hitting on a couple of the games this weekend i do expect the divisional round to be much closer. these are the teams that are playing the best right now so, i promise you the games will be more competitive this coming weekend. >> we can't wait for that. one of the best times of the year, drew hope to get your take on the other side of these games. great to talk to you. >> count down to las vegas and the super bowl. speaking of countdown, our continued market coverage right here nasdaq actually in positive territory, led by the likes of

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good tuesday morning we will come to "money movers. i'm carl quintanilla with morgan brennan. why midcaps are a good place to hide as he warns of a volatile market to come. two ceos on the state of retail ahead this hour we'll hear from the ceo of fedex after a busy holiday shipping season and the ceo of saks. former commerce secretary carlos gutierrez on the geopolitical impact on the taiwan elections and what it means for your money. take a look at stocks. it's a mixed picture with the s&p down fractionally, 4774. the dow industrials down 153 points the nasdaq is trading slightly higher, largely due to tech stocks, mainly semiconductors. amd is up 8.5%. getting news from fed