closing high on the s&p 500, the nasdaq continues to lead the way. you see bond yields, ten-year near 4.15% at this point. two-year note yield also ticked up. make sure you watch "squawk box" next week. "squawk on the street" coming up right now. ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. u.s. tech does reassert its leadership. nasdaq 100 coming off fresh all-time highs. ten-year, 4.15%. our road map begins with stocks trying to build on yesterday's gains. ndx will aim for another intraday high. plus, mark zuckerberg detailing his skcompany's futur

road map for a.i. ford announces it's going to cut production of its f-150 lightning electric truck. it may be seeing less anticipated ev growth in 2024. let's begin with the markets. as we said, one day after a fresh record high for the ndx, jim. qqq is in there as well. lots working in tech, and that's continuing into this morning. >> once again, we realized, do you have a.i. tailwinds? if you to, like microsoft, you're doing fine. how do you get an a.i. tailwind from meta? you say, listen, i'm in contact with nvidia. you brush by nvidia, your stock goes higher. it literally is, david, all hands on deck, get us from h-100s. wait until the h-200 comes out and then when you see the fight for h-200, it's going to be extraordinary. >> is it going to be zuckerberg wrestling? maybe not musk. maybe. maybe they need to get that back

on the calendar. cage match. they can wrestle. winner gets access to more nvidia chips. >> the relationship with zuckerberg and jensen has always been very solid. and by the way, human. human-like. >> and we know or we can at least guess -- we don't know what their price hper h-100 is, but he made it very clear, of course, about their efforts in terms of open sourcing and just how many of these chips they're actually buying. take a listen. >> incredible. >> wasn't that amazing? >> this technology is so important, and the opportunities are so great that we should open source and make it as widely available as we responsibly can so everyone can benefit. we are building an absolutely massive amount of infrastructure to support this. by the end of this year, we're going to have around 350,000

nvidia h-100s or around 600,000 h-100 equivalents of compute if you include other gpus. >> that's a lot of compute. >> who knows what he has in mind that he needs all that compute. but all i can tell you, you ask frank slootman at snowflake, because you have to rent the -- basically, rent the platform from nvidia. these things are expensive. you do not go in there idly, carl, and just say, you know what, let's get these things. you have to have a plan. i've seen the sunglasses. the quest 3. i don't think that's what he's talking about. i think it's something bigger. this is a very exciting time to be nvidia, because they've got taiwan semi working around the clock to make as many chips as they need. >> we talked about the taiwan semi guidance yesterday. today it's about mcsi. upgrade at texan. next week, we're going to get

texan and western dig and lam. >> the note said the inflection is coming. texan's last quarter was not good at all. when taiwan semi has to buy equipment, they're going to buy lam. the broadcom piece that i saw was, goldman, broadcom is going to be up 50 right from the get-go. >> goldman reinstates at a buy. >> you know they bought vmware, which raises their multiple. we know that they're already cashiering certain divisions. we know they've got big a.i. they've been a partner for a long time with nvidia. hock tan, when he makes an acquisition, david, you know he extract wealth from it. >> well, the stock took off toward the end of last year. >> what was it? $800 in august? >> after the vmware deal closed. >> true, true, true. >> and we know the market value

has, of course, moved up accordingly into the half a trillion range. $535 billion if you're keeping track. >> why don't people talk about broadcom as being an important part of the a.i. chain? >> i don't know, why don't they, jim? >> i think because hock tan quietly does his thing. >> maybe he should do some videos like mark does. >> i'll ask hock to come on. i'll ask zuckerberg to come on. i'll ask anyone to come on. >> by the way, just coming back to meta, given we just listened to zuckerberg, and you're talking about, obviously, the impact on nvidia, which is quite positive, given all that demand, but what about their efforts here? they're open sourcing everything. safely, of course, is what they say. and he's going after building general intelligence, and he hasn't given up on the metaverse. >> not at all. >> he sees it as an opportunity here, and everyone's going to be wearing these glasses. >> the glasses are amazing. go on amazon and buy a pair of

ray-bans. his ray-bans are cheaper, and they also make it so you're so smart, you can talk to your ray-bans. you can take pictures. go right to your instagram. it's the greatest thing. i got to tell you. i think it's a great product. and ces, do you know, they panned it at ces, and it turned out it wasn't there. >> what do you mean it wasn't there? >> he didn't send it to them. little premature to pan it. how about, once again, we got new people, a company that really is involved with radio, is saying no to the vision pro. spotify. >> oh, well, it's netflix and spotify and youtube. >> youtube will cave. i predict youtube will cave. >> and will eventually develop? >> google caves at everything in the end. they're even laying off people. look at google. hey, waymo, how you doing over there? >> disney plus is on there and apple tv. if we haven't mentioned it before, preorders begin today. 512 gig, jim, $3,699.

once you fold in prescription lens costs, warranties, you could have a four handle. >> $4,000 product. that is not going to be something that is widely purchased. >> let him talk. i got something good. t-mobile. >> not again with the t-mobile. >> t-mobile is sending them out. >> sending what out to who? >> well, they offered to send one to me, and i said, no, i can't accept it, it's too expensive. mike seifert is going to send me one. >> he's only going to send you one because you keep harping on this. >> that was a joke. he's, like, enough already, i'm not doing anything. carl. >> did they take your picture? >> even more handsome than ever. no, because mine was part of a skunkworks operation. >> guerilla demo? we're going to get t-mo earnings next week. >> they won't let me try it. >> you're not on board. >> no, i'm not on board. i'm not not on board. >> by the way, you can go to disney all you want after yesterday. me, not so much. >> it's -- that's true.

you, not so much. it's because i didn't like the morning show, i think. they just hold it against me. >> i thought "morning show" was fantastic. i fashion myself after paul marx. >> is that jon hamm? >> yes. >> i figured. >> been watching "fargo"? >> apple stock, best day since may. >> what a cool -- boom. upper right cut. boom. >> did talk to b of a. he thinks the vision pro is going to sell, and i think his word was, instantaneously. >> i think he was a little too bullish. i don't think people just have $4,000 sitting around when you can buy a 60-inch tv at walmart for $289. rollback. that's something i do at walmart. they roll back. >> i know. live better. that's a good price. >> is that unbelievable? >> i'd take it all day long.

>> it's amazing. i got a jacket there. looks like a $120 jacket, i got it for $28. >> no kidding? isn't that just a victory? >> it's like churchill in world war ii. >> it's a great thing to be a consumer. speaking of inflation, goolsbee on "squawk" a moment ago saying, still a possibility that we continue along this golden path. nick at the "journal" saying, you look at cpi and ppi the past few days, core pce, three-month annualized could come in at 1.5%. >> may i suggest that they look at a map and look at the suez canal? the cost for getting things through that, skyrocketing, and that's going to impact. >> well, the jour"the journal" story today about the impact on europe. >> that's true. it supports like $300 more a day. 330% up. we have our own problems with the panama canal, not having the

right amount of water. i do get this kansas city -- i keep getting the kansas city cp trade, the bridge from mexico. people like that. they like union pacific too. stock won't come in. because of near shore, and it's working. near shore is working. it's working. >> i believe you. just thinking about the chinese. i think they keep buying up a lot of stuff in mexico, aren't they? >> china? >> yeah. >> well, they own 30% of the ev market in china. >> yeah. >> china owns mexico. and vw has been, uryou know, th got a plant in pueblo. >> even the chinese now are beginning to focus on red sea security because it affects their own exports, largely, to europe where that red sea, i think, deutsche has a chart. freight capacity down 65%. >> they have to do something, the chinese, and yet we know that it's -- they have been -- they're not going to fire missiles. >> no. i mean, they're reliant on iran for a decent amount of oil.

>> yes, they are. >> and russia. >> wow. what an axis of just terrific countries. >> isn't it? hopeful for the future. >> is your point that goods deflation at least has emptied out? >> they've got to solve this. they have to solve the suez canal, because it's a tax on everybody. of course, there's more at stake in terms of human life, but i'm just worried about it. i'm worried about it because -- and i would like to hear other people worry about it besides hanson from nordic america tank. it's quizzical how no one cares, because freight is -- was what bothered people so badly during covid. we don't make all these things in our country, for heaven's sake. >> no, but they're -- they're getting places. it's just taking longer and it's more expensive. >> go around, you know, cape of bad hope there, take a lot of time. i think it's, you know, david,

the suez canal is what made -- that was good for commerce. you take that offline -- >> it's not good. and i think egypt also benefits from it monetarily. that's not helpful either. >> i just think that we -- i wish that these guys would take it into account. i would feel better if they didn't say, if it weren't for freight, we would really be down. evs are definitely in focus today. ford now planning to cut some production of the f-150 lightning even as they add some shifts on the ranger and the bronco to meet demand. we'll talk about what's happening in the ev space. goa wnadofert dogre htz today on that same issue. more "squawk on the street" in a moment. is a spa. an office. hi! hello! a cinema. so automated. yes, the definition of a car changes... but one thing stays the same. it's a mercedes-benz.

get over here kids. time for today's lesson. wow. -whoa. what are those? these are humans. they rely on something called the internet to survive. huh, powers out. [ gasp ] are they gonna to die? worse, they are gonna get bored. [ gasp ] wait look! they figured out a way to keep the internet on. yeah! -nature finds a way. [ grunt ]

stay connected when the power goes out, with storm ready wifi from xfinity. and see migration in theaters now. ford announcing it's reducing production of its f-150 lightning. for that, we're going to turn to phil. >> this is ford announcing on april 1st that it will be cutting its production of the f-150 lightning, going from two shifts, which it currently operates at its rouge complex outside of detroit, where they bui build the f-150 lightning. they're going to bring that down to one shift. some of those workers impacted, they're going to be transitioned over to additional production for the bronco and the ranger. this is, if you're thinking to yourself, wait a second, didn't today just cut their guidance in terms of ev production? yeah, they did that last month. basically cut their 2024 production plan in half, and

now, they are saying we're going to be cutting lightning production again. if you look at lightning sales last year as well as the year before, they did increase. it was the top selling electric pickup truck. 24,000 -- just over 24,000 sold last year, but ford said, after they came out of the uaw contract, we're going to be deferring about $12 billion in ev investments, not cutting it, but just not rolling it out as quickly as originally planned because the market is not developing as quickly as planned. so, this is a prudent move by ford. if you don't have the sales there, you just can't keep building and building and building, shipping them out or trying to sell them to dealers who, by the way, when i talk to dealers, they all said the same thing, which is, demand right now, when it comes to pickup trucks, first and foremost, is for hybrid, then international combustion engine, then for the lightning. and that's a reflection of where the market is right now overall. take a look at shares of ford in the last year. we'll get the q4 results on february 6th, and again, guys,

while they are cutting this shift for lightning production, they are increasing production for the bronco and the ranger, why? because that's where the mooark is right now. that's where demand is as internal combustion engines and hybrids are in big demand right now, and ford is in the best position of the big three when it comes to hybrid production. >> you know, phil, i applaud this, because you can't keep making trucks that don't sell, but when i was -- >> you're absolutely right. >> it's smart, but when i was out there in the spring, i thought there was a waiting list, and people were very excited, small business people. what happened? just all the ones who wanted it got it and that was it? >> i think it's not just all the people who got it and that's it, jim. i think it's a couple of things. one is, increasingly -- first of all, forget act bout this waiti list. i don't care who the manufacturer is. the next time you hear a manufacturer say, we've got scores of reservations.

that and ten cents will get you a cup of coffee. it's easy to say, i'm reserving a vehicle. a lot of times, they evaporate when people are forced to say, okay, i'm either buying or not. but with regard to lightning, i think there's demand there, jim, but i also think that the market right now, you have a lot of these pickup drivers who are saying, i'm ready to eventually go electric, but i'm not ready right now. i'm telling you, when i have talked with dealers, ford dealers have told me, it's not that people think the lightning is a bad vehicle. it's that they think a more prudent choice is perhaps in the interim going to an f-150 hybrid or still internal combustion is still popular, and the f 1-150 the best-selling vehicle in this country. that's the issue when it comes to the lightning. >> really amazing. you know something, phil, you're covering this business, and it's very clear to me that it's almost as if, you know, look, if we were talking about euro politics, they cared about esg, now they care about security. we talk about these things that

people care about, the security of their workplace. the small business person, i think, is afraid they might miss an appointment because they may not have enough electricity. >> well, you've got to make sure, if you're going to use this as a work truck, that it truly can be within a confined area. the white house today out with an announcement in terms of more grants or investments in the ev infrastructure in this country, and yesterday, they said, we're going to put $150 million into improving or upgrading public chargers. we, they need to, because it's a mess right now. the public charging in this country for evs is not where it needs to be, and the white house knows that. and they want to get to 500,000 chargers by '26. they're at 170,000 right now. not only do you need to add more chargers, jim. you better make sure they're the right chargers and that they work, because the number of times i have heard from people who have evs, saying, i don't want to take a road trip. i don't know where -- aside from the tesla super chargers, no

complaints there. the complaints are on the other publicly charging ones. >> yeah, there's some reports late last year that one in four chargers are not always working. phil, that is a problem. thanks. we'll talk some airlines later on. we'll get cramer's "mad dash," countdown to the opening bell. one more look at the premarket as we try to finish this week with some gains. [alarm clock ringing] [upbeat music starts] (♪♪) [transaction notification] [car door closes] [lights turn on] [inaudible kitchen chatter] [bell dings] [inaudible chatter] (♪♪) [transaction notification] (♪♪) oh no, a rash. maybe it'll go away. awww, how am i going to find a doctor i'll actually like?

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in our stock market. >> yes. >> that includes apple recently. >> this one, i think, can go over 400 on an amazing piece by cowen, looking for beat and raise, sees incredible momentum. david, azure should be the high end. that's their cloud offering. should be the high end of the range. they believe the pc is bottom. office commercial modeling, much better than the streets are thinking. david, this is a powerful story, and it's not even focused on a.i. copilot. there's a lot to work here. >> it's not even focused on a.i. and copilot? >> it says they don't even need that to make their numbers. they say a.i. is going to be great, but we have -- there was a big mag seven backlash at the beginning of the year. and then you have a couple of these. >> you were kind of part of that backlash. you were saying -- listen, you were not saying sell it all, but you were saying, maybe take a little off. >> these things went up so much, when you looked at my travel trust, all it was, it was maga. >> it was. >> it was maga. like iowa.

but you know what? we had to trim back. this is the one that you could -- this is the one that i think people are just saying, it's got it all. >> it's got a pretty high multiple. now, that said, it may be deserved. but it has moved up a bit of late as well. >> 31 times next year's. >> yeah. >> that is, look, alphabet's multiple is lower. meta's multiple is lower. i have to tell you, when i look at nvidia, we know that can be -- >> nvidia's multiple is lower, potentially. >> apple's at 29. that's the hot one. that's why it's so controversial. and you know -- >> the upgrade yesterday from bank of america. >> widely respected and on the conference call asked the most cerebral questions. but it had not been positive, so his switch was worth $5 for the second largest company in america. keep track of the fact that there's just a belief that people don't want to -- they would love to broaden things and go buy companies that aren't as good, but these guys just keep putting up great numbers.

>> yeah. after a first few couple of days in the year, it's been mag seven all the way yet again. not sure about that promise -- >> don't forget netflix, the old f.a.n.g. >> we're going to get to so many more stocks when we get that opening bell. and don't forget, you can always catch us any time and anywhere by listening to and following the "squawk on the street: opening bell" podcast. back in two. 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 and creepy ads that follow youa from google and other companie. and there's no catch. it's fre.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. on the freight environment, we have turned the page on 2023. good-bye, and good riddance. we remain committed to our focus on return on investment capital and managing for the long-term, but the freight environment remains in a challenged state. i do believe we're better prepared as we come out of -- and i guess i'll say when, not if, but when we come out of this freight recession. >> jb hunt's john roberts on his

company's earnings call last night. stocks up despite truckload volume down. >> i think that key line in that conference call is darren field, executive vp and president of intermodal. intermodal has really come back. that was something last year i was very concerned about because that's been really kind of where they're making a lot of progress. the volume trends, up 6% in october, 6% in november, 8% in december. intermodal is often the key to see whether trucking, which is the kind of spot rates on intermodal, how strong it is, and i was very impressed by this. these guys are very hard on themselves. >> they are. you also mentioned the rails positively a few moments ago. >> hearing good things about union pacific and kc. i mean, really good things. and, look, the renaissance of mexico, again, post-china, is really playing a role here. >> right. >> we'll get unp earnings next thursday. let's get the opening bell here at the cnbc realtime exchange.

at the big board, it's restaurant operator pinstripes. at the nasdaq, kazakhstan-based online shopping kaspi celebrating an ipo today, jim, as we keep our eyes peeled for any kind of closing highs. >> yeah. i like -- i want to come back to a thesis that i'm propounding, i'm trying to get david's buy-in. i continue to see these japanese companies kicking the tires of our company >> i don't think it's a tidal wave. yeah, we had a big deal for u.s. steel. >> it's not a tidal wave? >> no. >> how about a rip tide? >> be careful with rip tides. always go with them, then come back to shore on a diagonal. don't fight the rip tide. >> i was caught in one with my daughter when she was 9, and she said, dad, we have been out here

for quite a long time, and we don't seem to be going anywhere. that's when you start realizing. but you don't want to explain to your kid that you're scared to death. >> and you made it back, th thankfully. to your point, japan is having a moment, but i don't think it's going to result in a -- a huge number of deals. there are going to be some. >> well, i think that there's a lot of stocks that are up so much that they would probably like -- >> listen, by the way, you talked about it. letter x is trading at a fairly large spread to the $55 a share cash deal that they have in hand here, because there continues to be some concern on a national security front. seems hard to imagine one of our closest allies, not to mention -- it's not like you can move the steel plants over there. >> right, right. >> in fact, the technology will come over here. so, i do know a number of sophisticated -- they are happy to see that spread and take advantage of it they believe

this deal will close. >> do i detect a level of skepticism about my belief that there could be some more m&a in the pipe? >> this is just going to be better than last year, and i think i have been speaking positively about it in part because i have had a lot of bankers who are hopeful. that said, the last couple of days, met with both senior lawyer and banker, and they kind of were less sanguine, i have to say. >> my travel trust -- >> not saying it's going to be a better year than last, perhaps, but don't get overly excited at this point. there's a lot of things that didn't make it to the finish line last year on m&a. >> any industries in particular? >> you know, i think large deals, but it wasn't antitrust. it was price. that run-up towards the end of the year in the overall markets and in particular some areas really threw price off and deals that had been thought about and/or pursued just made it very difficult when your premium starts going away and you got to

increase your price by a lot to actually maintain that remium, jim. we'll see. price, of course, ends up still being the most important single component of whether you're going to see deals and whether sellers are willing to adjust to the current market conditions, whatever they might be. >> i think that's important. if we're going to have a broadening out, carl, it's going to have to come from other industries. we just can't keep raising and saying, okay, today is meta's day. it's almost like we appoint one each day. today, it's microsoft's day. let's do apple. i'm waiting for amazon's day. maybe alphabet lays off more people. but how about the other 493? we have to get the other 493 involved. >> your point about japan's actually the subject of b of a's friday note. they call it abc, the anywhere but china liquidity dynamic. at a point where they say the nikkei is still structurally underexposed. >> that's one of the reasons why i liked that piece. it made me think they watch,

maybe, our show. >> i wouldn't get too -- sorry. not to disappoint. >> trust me, they watch. you mentioned layoffs, jim. macy's, yesterday. >> yes. >> wayfair today. >> a big one, those layoffs. >> in addition to the week, citi, google, amazon. >> citi adding more to what was. amazon even some additional potential, smaller layoffs in their prime. >> "journal" has the list of companies that are laying off workers and it's at least about a dozen companies that are large at least. >> i've got to tell you, if you're looking at wayfair, and you're thinking, wow, i thought that might show there was a weakness in demand, and instead, the stock flies, you might be tempted to say, you know what? maybe you ought to look at the table of employment. maybe there's too many people here. it's not the old dw days at goldman, though. ? >> what do you mean? >> deadwood. we would say he's deadwood.

go in a room, and they would say, revenue producer, revenue producer, deadwood. it was, like, deadwood. you don't want to be deadwood, by the way. >> that's a bad thing to be. >> really incredible to see the way capitalism can work, a real engine in capitalism. deadwood. you never -- that was one of the things where you wanted to be a revenue producer. see, if you went around our office and did that, that's the type of thing -- that's still di -- that's d. i.e. that's everything. you call someone deadwood, david? it's like the tv s show "deadwood." canceled. >> that was a good show. >> good acting in that show. >> excellent acting. main character, not the sheriff guy, the other guy. i liked him too. >> shane mcgowan. >> i got a lot of heat for my magnificent seven comments. even though we talk about magnificent seven every day, nobody knew any of the people

that i mentioned. robert vaughn. coburn. >> you have a very deep understanding and knowledge -- >> of 1970s cinema. "bulleit." >> i like that lombardi street in san francisco. bernstein's score meant nothing to people. look at this. which one of them is horace buckles? >> i don't know, but the point is that other than tesla, they have all had extremely strong starts to the year. i should say apple as well is still not in positive territory, but the story of this market has been the performance or the outperformance of the magnificent seven versus the broader market, led by nvidia, without a doubt, up almost 17% for the year right now and not far behind, i mean, far behind but still having a great year so far is meta as well, up some 7.1%. >> it's incredible, because if we could just sit there and talk about these stocks and nothing else, and people would like it, and i'm trying to get people

excited about kc. >> i told you, we got to have a show. seven stocks. >> that is so good. the seven stocks. >> let's take travelers. we could talk some travelers today. >> oh my god, yeah, that's right. travelers matters. >> homeowner renewal premiums up 21. >> i think this is when you look at the -- by the way, when you look at the fed's comments on cpi, insurance is off the charts. it's just ridiculous how important it is. david, do you know a lot of people in florida are not taking homeowners or can't get it? >> it's so expensive that they can't afford it. there's also insurance being removed from all these low-lying areas. the insurers just won't cover you any longer or make the premium so high, it's virtually -- >> travelers has a mag seven chart. >> lilly, by the way, creeping into the top ten. bespoke pointed that out yesterday. >> i just keep hearing, look out, they may have the pill soon. they're working on the one that doesn't reduce the muscle. they're right in there with

everybody else. it's not just amgen that's doing it. >> it's not, although amgen has had a nice start to the year. we've mentioned that pharma has been one of the best performing groups. that continues to be the case, led by merck and lilly. bristol myers, your old freiend get outfit of its own way. >> they spent a fortune on an anti-s an anti-psychotic, and it's not clear to me that you can make much with those but they're making a big bid. >> we had the two deals by letter a. what's the pharma company? >> letter a. >> not -- it starts with "a." this is what happens now. >> it's a quiz. >> sounds like? >> they announced two deals within a week of each other. >> that's bristol.

>> gonzalez is the ceo. >> abbvie. they won't come on. they are a black box. no one really knows what abbvie is going to be up to. i invite mr. gonzalez to come on right now. talk to us about what the game plan is, because they've done quite well. it wouldn't be a negative interview. it's been a fantastic stock. >> it really happen, even if i, for a minute, blanked on the actual company. i knew it. that's almost a $300 billion market value. >> look, it's a great company. they're doing amazing things, but they don't talk. they are one of those companies that they just don't believe in media. >> to your point, jim, about broadening out, all five of the financials that reported are up. fifth third, huntington, state street, ally. i didn't check comerica. >> what happens, of course, we all realize, wait a second, the reports of their demise is greatly exaggerated. first horizon had a very good move after that interview yesterday. and i think that these stocks are -- have been chronically

undervalued because of the banking crisis. people don't trust them, but that's wrong. my favorite has been h ban because h-ban has been doing incredibly well, and no one cares. >> yeah. we started the week with schwab's earnings not being well received. we had discover. there have been some not great signs. >> dfs was horrible. >> they sort of, still being penalized to a certain extent because of the banking crisis, the mini-crisis, as you like to call it, from last march. >> is that what you call it, the mini-crisis? >> yeah. it may be worth -- it's a less than billion dollar market cap but what a week for spirit airlines. obviously, the deal with jetblue gets dealt a major blow by that judge who said no, and i think it's an antitrust issue for sure. this deal is still in place. they haven't yet awbandoned the merger agreement. there has been a lot of concern that this company was going to

have a very hard time of it, given its liquidity. they put out an investor update in which they make a number of points, and that's helping send the stock, as you saw, 20%-plus higher. they say, due to lower fuel costs and efficiency, lower airport costs, their operating expenses are coming in better than expected. their revenue number was better than expected as well. that said, it's not like they're making money. $1.3 billion of liquidity, they point out. they also did some sale leasebacks for a bunch of aircraft, which netted them $419 million. and they think they're going to get paid by pratt whitney, by rtn, for -- they have the most planes grounded as a result of the gear turbo fan neoengine availability issues. talk about piling on. it's like, of all the issues they have, and then they have that one to deal with as well. >> well, when i saw the stock was up, i said, all right, you know, hey, we're not dead.

so, let's go buy the stock. >> it takes a while. debt maturities, including $1.1 billion aggregate principal of 8% senior notes they're trying to assess the options to refinance those. they're doing 25. they've got some challenges at spirit for sure. we raised that point. if, in fact, they were to have to be forced, and we don't know, and they're saying -- obviously, this is a different scenario they're sitting at here, but they were forced to reorganize. is that good for competition? maybe if they change around. >> if they hang around. if they hang around. bed bath hung around for a little bit. rite aid is hanging around. >> reuters today saying they're trying to convince jetblue to appeal the judge's decision. we'll see how far that gets. >> they'll lose that. i'm going to save them a little money. the justice department has a good case. the justice department has a weaker case against the mag seven types. they go up against google, and when you started your case against google, tiktok was a glint in somebody's eye. now tiktok is the number one way

to get ahold of people. you got to be really careful and say that google's a monopoly. you got tiktok really took them apart. david, have you tried shein or i temu? i want you to get on shein. once you've given them the information, you'll get an email every 38 seconds. >> is it? >> plus they listen to you, obviously. you'll say, shein. boy, david, i really like that jacket. you'll be bombarded with shein. it is -- it is the most -- thank you, andrew jassy, for picking up some of shein. this is one of the most kids quizzical sites. a lot of times you buy something today, and it says, you get it january 30th. i order something from amazon, and i expect it when i get home. >> they're making it on order for you. they're changing it up as they go based on what they're seeing in terms of demand. >> i think they're going right

to wm for the source of it. you used to say, a lot of this stuff ends up in a landfill. i think they go to the landfill. >> we're going to have more of an opportunity to talk about shein when that company goes public. >> they are about to play us for suckers once again. the chinese are brilliant. they did about 20 years last year, very small. here we go again. they're going to just crush us, you know? suckers are born every minute in this country. i want to buy an apartment building in china. can you set that up for me? how much will they pay me? >> i got plenty for you. i've got a lot of inventory. you're going to love it. there's a lot of empty surrounding buildings and about ten square miles of emptiness. >> my wife loves buying apartments because she just plunked down a couple gs. >> i think you'll really enjoy being there. >> some of the stats today are remarkable. china and hong kong stocks down

$6 trillion. >> they're down as much as japan's up for heaven's sake. >> yes, yes. >> yeah, it's problematic. that election didn't go the chinese way either. >> pinduoduo having a very strong -- they own temu. >> here's one. w walgreens. tim wentworth doing a great job, but i think people feel they have to bite the bullet and take more than just the dividend down. it is challenging. chall challenging, that one. >> shares of paypal have had a very nice move since our interview. >> you turned -- the stock was down. i watched the stock. i watched. it was down, down, down. he came on, very humble, and the next you know, you got a full-scale reversal because of your interview. >> there it is. i mean, it literally was the moment he started. we started the interview, and this is a company that has not performed well at all. there were four major downgrades over the last couple of weeks. that's where we started the conversation. but he made it clear that things are going to change at paypal. obviously, you have to execute

on that change, but take a listen. >> we have done too many acquisitions over the last few years, and we have been defocused. it was one of the things i noticed when i came in a hundred days ago. we've got a lot of priorities. we've narrowed those down. five key priorities, all focused on profitable growth. and so, i think you'll see us start to move away from some businesses that we may have been in and really focus our energy and our efforts on building profitable growth going forward. it's going to be a lot of fun. >> jim, thank you for noting that that stock bottomed literally during the interview and has had a very significant percentage jump since. >> he's most impressive. he came from the intuit coaching tree. i noticed he said we, we, we, which is good, since he had nothing to do with any of the bad stuff. that was nice. he didn't throw anyone under the bus. >> no. >> and i like -- as soon as i heard him, i said, i don't think he's going to put out anything like venmo. and the acquisitions that paypal made -- one of the key things

was when you knew that he was flailing, and was talking about merging with pinterest, pinterest was doing really well. but i thought that this interview said to me, this is the time to reopen the book on paypal and take a hard look at it. he's such a smart guy. >> we will be following it, perhaps, more closely. >> he seemed humble. >> yes, i think so. an entrepreneur. when he started his career, many years, as you point out, at intuit. but the 25th's going to be an important day for them. that's their innovation day. we will get a little more. >> buy now, pay later question was hysterical. >> yeah. >> very good interview. >> thank you. guys, we'll keep our eyes posted and see if we get some closing highs, but the dow has gone negative. goolsbee is on the tape, having appeared on "squawk" this morning. we'll get daly and barr this afternoon, and we're not quite done with data. in about 13 minutes, we'll get existing and umich with the ten-year about 4.17%.

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them. i jump thishalliburton the one buy. >> a hike at valero as well. >> the companies are generating a lot of cash. we would like to see the price of oil higher if you're in one of these. slb is a great company, and i'm really glad for them. they're very smart people. i interviewed with them in 1983 at m.i.t. and they asked me a couple questions and they said you have no business being here. >> not even second round. >> no. >> not even finish first round. no. it's very nice to meet you. thank you for coming by. >> glad things worked out. >> yeah. okay. well you know what, if i had known it was going to be a job interview i would have brought my resume. it was a job interview, jim. >> one thing we didn't talk about is who you like this weekend. >> okay. it is very important because i did wear my chiefs hat in. i did wear my chiefs hat. i want -- i like to see the bills get further but baltimore has the horses.

okay. they have a gm who is really the finest gm in the business. >> are you going with plor baltimore kc. >> i like detroit sixth. >> the niners. >> niners, although i think our friend bob iger, jordan love and their d are good. it's not their year yet. okay. not their year yet. just the cowboys were a bunch of fugazis. >> i have nothing to say. >> you have nothing to say. >> other than the chiefs hat. >> week ten ran out of stuff to talk about. >> i'm an andy reid fan and i wear that hat proudly. >> what's on tonight? >> i'm going to pick the best regional bank. there's been so many and it's a great place to be. you have to be in the right one. you can't be in the wrong one. we'll have the right one. i want the bills sentimentally because i love to see them win a

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good friday morning. welcome to another hour of "squawk on the street." i'm carl quintanilla with david faber. courtney reagan is in at post nine of the new york stock exchange. sara eisen is on assignment. the bulls try to make a run at s&p closing highs. a few points away, leaning heavily on tech once again which is at a record, even as materials, health care, industrials and staples are all lower. >> we are 30 minutes into the trading session today. here are three movers we are watching. shares of travelers hitting record highs after strong results there. the insurance company reporting the highest quarterly net income ever after lower than expected losses. a volatile week for spirit airlines surging after the

company raised its q4 revenue guidance as the carrier is exploring restructuring options after the collapse of its deal with jeb and the company pressing jeb to appeal the verdict. we'll bring you the latest this hour. wayfair popping higher on news it's laying off 13% of the global workforce more than 1500 employees. it's the company's third restructuring since 2022. more on the state of retail and those job cuts coming up. >> first we have some economic data crossing the tape. let's get to rick santelli for that. >> yes. david, look at those yields running higher. i'll give you a couple good reasons. headline university of michigan sentiment, jumping to 78.8. that is the best level going back to july of 2021. july of 2021. 75.9 on expectations. july of 202 1.

83.3 on current conditions, best since july of 21. let's get into the inflation numbers. on one-year inflation in the rearview mirror 3.1, a three-year low. now it's even lower. 2.9. you have to go back to 2020 to find a lower number and that happened to have been 2.5. on five to ten-year inflation our last look was 2.9. that was the lowest only since september. it dropped now to 2.8. to find a lower number than 2.8, well, you have to go back to september of '22 when it was 2.7. so these numbers definitely go a long way to assuage the markets that maybe, maybe some of their feelings about rate cuts by the fed could be closer to reality on the multiples versus 3 this year as some fed officials have said. now as we -- excuse me, excuse me. the strength in michigan for

that, but the drop in inflation augers for them to proceed on the easing cycle. now for existing home sales for the month of december, we're going to turn to diana olick. diana? >> reporter: well, rick, existing home sales in december fell 1% month to month to a seasonally adjusted annualized rate of 3.78 million units. that's a miss. the street was looking for a slight gain. sales 6.2% lower compared with december 2022 and, of course, we have the full year sales that came in at 4.09 million units. that is the lowest level since 1995. and down 19% from 2022. prices, however, hit a record high for both december and the year. the median home price sold in december was $382,600, up 4.4% year over year due to tight supply, although inventory did improve slightly. 1 million units for sale at the end of december, down 11.5% from

november up 4.2% from the year before at a 3.2 month supply, six months is considered a balanced market between buyer and seller. now homes stayed on the market longer in december, averaged 25 days up from november. they were just 29% of sales historically first-time buyers make up 40% of the market. the realtors chief economist said this marks the bottom of the recent sales cycle thanks to the recent drop in mortgage rates, but we will see. carl, a fun fact for you, the last time sales were this slow in 1995, the median home price was $114,600. imagine that. >> that's an incredible stat. just shows you the winter that we're in. diana, pretty amazing. thank you. diana olick. also got fresh fed commentary to get to from fed president goolsbee today. steve liesman has some of the headlines. >> carl, just a quick comment on

what rick nailed the dichotomy, the contradiction in the sentiment numbers. the idea that people are feeling better. we've seen real wages rise and inflation coming down, but the idea that there's a positive growth, negative on inflation, you look at what the dow did, plunged and came back as it reconsidered the weak housing numbers and the idea that inflation expectations are down which is important for the fed. meanwhile chicago fed president austan goolsbee in an exclusive interview sending less dovish or guarded in his outlook for rate cuts this year. >> inflation has come down a lot and i've been highlighting for months with you, steve, and elsewhere, that's the thing that everybody should be watching to determine what will the fed's rate path end up being. it's not about secret meetings

or decisions. it's fundamentally about the data and what will enable us to become less restrictive. >> goolsbee said 2023 was a good year for the fed in what he calls the golden path of bringing down inflation without spiking the unemployment rate and good growth. he declined to say how much or when the fed would cut and went so far to say the fed could hike rates if inflation reversed course. >> if inflation was not tamed, if we started to get evidence we were not on path to get to 2%, rate increases would be back on the table. >> all right. even though goolsbee is equally dovish as the average fed official he joined the chorus of official trying to tamp down cults for this year. down now to 51% off their highs of nearly 80% following the december meeting. almost back to where they were

before that meeting. so the fed has been successful in talking down market optimism for cuts. question is whether the fed risked that recession that it's been trying to avoid taking time to lower rates. courtney? >> steve liesman, appreciate it. great interview with austin goolsbee. the s&p is within striking distance of its intraday record of 4818. the nasdaq on pace for 11 positive weeks out of 12. let's get the street's take on where stocks go from here. capital markets chief investment strategist brian belski has an s&p target of 5100. before we dig into that, a couple pieces of economic data. what do you make of those reports that consumer sentiment number strong at 78.8 versus 70.2. >> thank you for having us. it's been a while. so our case all along has been that this is not going to be about growth slowing down. it's about inflation rolling over. it seems to me, i'm still

befuddled on how everything thought the fed would cut in march. i don't know where that came from. fed funds futures have been wrong for two years, the bond market wrong for two years. and you know, we stand by one thing, stocks lead earnings which lead the economy. and the stock market has been strong and it's telling you that growth is going to be strong. remember a year ago everybody was worried about earnings rolling over. now everyone is worried earnings are too high. same rhetoric. the trends are quite similar with respect to what we're seeing in terms of earnings revision and growth is going up. so i'm not really understanding the rhetoric or the analysis behind it. this is not about growth and goolsbee, he nailed it. i think what's going to end up happening is, that inflation is going to roll over but the fed is not -- the fed is in no hurry. they don't need to drop rates. maybe second half of the year. the way we look at it from an investment strategy perspective, not the economist or fixed income team, we think the first

half of the year, 10-year yields hover around 4% and second half of the year we hover around 350. by the way, that's on a path to normality because remember, we've been anything but normal since 2007. >> if the yields are where you say they are, aren't you surprised that tech is still as strong as it's been and that you predict it will be strong going forward, even with yields sitting where? >> no. we're overweight and we debunk a lot of analysis coming out from our competitors talking about valuation. valuation, for the market in general, is the worst predictor of future performance but it is especially bad for tech. i think it comes from people that are trying to make separate calls and market calls and not investors. we continue to think those core tech names are consumer staple like. what we said in the fourth quarter was we were starting to see disparity in terms of dispersion with respect to the valuation and performance among the magnificent seven and some of the other big tech stocks into other areas. so we think you can barbell and grow growth at ranl price within

tech. that should be a core position in your growth portfolios. for value we like financials a lot. >> has earnings season so far ratified your views on banks? >> yes. you want to buy banks. carl, you've been doing this a long time. buy banks when it's kitchen sink and cutting cost and everything is negative. sell banks when everybody is really great and buy them when everyone is bad. there's no way we're seeing any froth in the financial services industry because there's no ipos. now there's some second half of the year, but last year, nothing. so we're cutting costs, we're negative, we over reserve, we're already saying that we're going to have a recession. where is the recession? we think with those over reserves, we're going to see more buybacks and dividend growth from the big banks. >> we heard from taiwan semi yesterday and chips are an area of a lot of focus with ai. obviously, their nanometer technology which is market leading. what do you predict for the chips space in particular within tech? >> it's a great question.

last year was one of the dare i say late '90s you throw the dart. now you have to take two steps back in my positions you don't have to own everything. i think you want to own the leaders in our view it's nvidia and amd and you barbel it with more of a value stock like broadcom and qualcomm. barbel and neutralize your positions there but overweight other areas in tech and neutralize semis. >> fascinating stuff. an area we'll watch. nvidia responsible for 100% of the s&p 500 year to date growth as of january 15th growth. >> if you look at the evaluation of nvidia it's not stretched by any imagination. you dip from a fundamental perspective two or three different waves of fundamental strength in nvidia and i think people are missing the near term versus the longer term in that name. >> got it. thank you very much. >> as we head to break here is our road map for the hour. apple betting big on the vision pro but the payoff as preorders

kick off today more on what it means for the company. >> plus, is 2024 set to be a reckoning for retail? we have macy's wayfair cutting workers. walmart raising base pay for store managers. we'll discuss it. >> a study shows the trillion dollar u.s. travel industry is plunging. big show still ahead as "squawk on the street" comes back.

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another bullish note on apple. evercore saying the company should be able to report, quote, modest upside in the december quarter and guide march quarter into the zip code of street expectations. apple shares down year to date but gaining momentum over the past few trading days. carl, this is the second upward move we've gotten from an analyst in as many days, i guess. that did follow three cuts to the ratings to start the year. >> speaking of which, preorders for the visionpro headset begin in the u.s. this morning. our next guest tried it three different times. the biggest question, what's this best used for. joanna stern, "wall street journal" columnist. great to see you again. you've had a chance to get it in a series of environments. give us your initial take? >> i have worn this four times and my take is the same every time, wow, this is a lot of tech to put on your face, and i'm calling this a face computer, hoping that term can catch on,

so let's call this a face computer from now on, but also this is really natural to use and when you compare this to other vr headsets that had the clunky controllers and blurry interface when looking at the real world this is much more natural. to get that you have to put this pretty big contraption on your lead. >> has the chip performance reduced latency to the point where you don't get, for example, nauseous. >> i have not gotten nauseous since my first demo and i believe a lot of what would make somebody get nauseous, sort of the movement happening of what you're watching. a lot of demos i've seen since, i've been standing still and much of what i'm looking at is also sort of right in front of me. i'm going to have to do further testing on that, but the way that apple has designed this is to replace your screens, right. you can put this on, you can have many virtual screens in front of you, versus going into a full virtual world like you

would do in vr. >> right. so do you see this as an entertainment device you would use on a plane? do you think people are going to use this in the office? pilots going to use this to train? engineering? where are the use cases go going to come from? >> this is my biggest question and i have to test this outside of apple's closed walls to figure this out. is this best used for work? that's something apple is talking a bit about. tim cook has said he's been working in this thing and can it replace the tv for many years we wondered where is the apple tv? is this actually it? is this sort of the portable tv you bring on the airplane or watch on the train? everyone is asking, where isthe killer app? i do not think there's going to be a killer app. i think there will be killer use cases and we have to figure out what those are with further testing. >> you know, i realize it's maybe hard to compare but i'm sure you've worn these glasses from meta, for example, the

sunglasses. i'm curious to get your thoughts about the applicability there of a far lower priced product but how you think it's similar or different and what success may accrue there as well? >> yeah. i think look, there's going to be two different categories so we can eventually get to the perfect world where we can have the sunglasses or the glasses, the real natural looking warby parker rayband glasses that have a screen and camera. meta is doing that right now with the raybands. they have a camera in there. they don't have a screen. it's a low er cost product, couple hundred, good for taking photos and asking the ai assistant to answer some questions. the higher end, ar-vr sets. that's where apple is playing and where the meta quest 3 plays right now. at some point these things will converge and that is the path apple is on with spacial computing. it is going to take a number of years to get this big chunky

face computer into some smaller glasses. >> all right. all that said, at almost 4,000 bucks, clearly it's not mainstream product, but what are your expectations then? who is going to buy this thing? >> certainly early adopters, my good not data twitter or x poll this morning asked a bunch of my followers if they've ordered. 20%, more than 20% a little bit, have ordered, i think it's alabama around 300 orders from my small sample group there, and i expect a lot of those are early adopters, people who want to try this thing. one thing i think we should keep an eye on are returns of this product. this does come under apple's return policy. if you want to try this what's the best way to do it? >> front $3500 and then return it if you don't like it. >> we're going to keep our eye on that and shipping delays. we're starting to see some reports of potential delays into march. joanna, fascinating to watch if we're truly in a new chapter.

>> i hope to come to the set with it soon. >> okay. >> you played with it yesterday. what were your thoughts. >> viewers had more questions like how do you move the mouse? you're moving it with your eyes and pinching your fingers together to click. that's how you're moving sort of the arrow on the screen around you, just by looking at it, and it tracks the movement of your eyeball. >> what kind of applications? >> we played with disney plus. we looked at photos. there's immersive vr animation. imagine your desktop surrounding you all around. >> okay. >> and then you can move photos, kind of like in "minority report" tom cruise, you shrink it move it over there. that's what you're doing. >> did it feel clunky on your lead? >> no. but joanna is right it's heavy on the head and i had it on for an hour. >> that's a long time. >> the battery life is only two hours. so we'll see how much tolerance people have to try this out and stay with it. >> it's fascinating.

apple has had a lot of home runs with skepticism that started out. >> david is next on this whole thing by the way. >> maybe. i don't know. face computer, i just don't know. >> that's pretty funny. still ahead, spirit shares showing signs of life after raising its forecast but on pace for the worst week ever. e hope for a jetblue deal. we're back in just a moment. .

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shares of spirit airlines are surging. you can see it up as much as 26% this morning. that, of course, is after the stock was down sharply when its deal with jetblue was blocked by a federal judge. phil lebeau joins us now and has the latest and one of the key questions here, is there any chance of them trying yet again to appeal this ruling? >> oh, there's a chance of that, although most people, most if you want to call them experts, people i've talked to who track mergers and acquisitions, especially within the airline industry, they're not optimistic that an appeal with jetblue will work. having said that, as you mentioned, take a look at shares of jetblue again because the reason the stock is getting a bit of a pop this morning is

because the company has prereleased essentially, not all of their details but increased their guidance for q4 and the revenue will be coming in at the high end of their previous guidance at about $1.3 billion. that's welcome news if you are still hanging on to spirit and hoping these guys do not end up going into bankruptcy. having said that, they have a lot of headwinds and by the way, the bankruptcy talk it is out there. 1. $1 billion in debt that the company said it is trying to restructure in some fashion, but there's flat demand right now and falling fares, the first quarter is not a real good time to look for improvement in your business for any airline, and their asset sale options are limited. they did a sale lease back with some of the planes in the fourth quarter. that brought in more than $450 million. welcome money they put towards paying down some of their debt, but the big question becomes, what is their path forward from

here? their planes, they don't have incumbered assets. it's not like they can go out and sell the planes or do sale lease backs. the question becomes, do they appeal the ruling where the judge said the doj is correct in blocking this merger? as i mentioned a number of analysts have weighed in on this and not optimistic an appeal will be successful given the decision from the judge, so the question is, what happens between now and february 8th? i say february 8th because that's when spirit will be reporting its q4 results. they've got some time. they can maneuver things around. it's not like they have no money at all. they don't have a lot of great options out there. they have about $1.3 billion in liquidity. in the airline business you can burn through your cash very quickly. >> not to mention also hit by that engine problem. they're the biggest -- >> sure. >> suffering the most from that in terms of the grounding of their planes as a result of the

turbo fan. >> and that will be the case all year. the expectation is that that's going to take out a number of their aircraft all the way through the remainder of this year. >> yeah. if you've been in the basket of airlines year to date, it has not been a pretty ride. we'll watch that. phil lebeau this morning. still to come is 2024 set for a retail reckoning. macy's, wayfair cutting thousands of workers as questions grow around the 'll .mer weget the read from the ground after a short break. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is

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by downloading duckduckgo on all your devices today. tens of thousands will see debt wiped away. the biden administration announced $4.9 billion of relief for nearly 74,000 borrowers today. the majority of the aid will go to people who have worked in public service for more than a decade.

the rest will go to borrowers enrolled in income driven repayment plans. the administration is also pumping money into the country's electric vehicle charging network. the white house announced an expanded tax credit today that provides as much as 30% of the cost of an ev charger for people and businesses in low income and rural areas. the credit was created through the inflation reduction act. and finally, congress sent a stopgap funding bill to the president's desk that would prevent a partial government shutdown this weekend and keep federal funds flowing through march. the current funding expires at midnight. this is the first stopgap bill since last september as the divided congress struggles to agree on full-year funding bills. carl, back to you. >> thanks. a tough week for bitcoin its lowest level since mid-december on pace since august of last year as cryptos hit the lowest level since the etf approvals. the weakness impact something crypto-related stocks which are

continuing to sink lower in the new year. coinbase, micro strategy, marathon digital down more than 20% in january and jim has been negative on the technicals regarding crypto as well. >> yeah. interesting comments from jamie dimon about bitcoin. let's turn to the broader markets and take a look at where we are about an hour or so into the trading day with bob pisani. he's got more on what's moving. hi, bob. >> hello, courtney. you know it's amazing 2024 is looking like 2023. it's another tech rally. this is the least likely thing we're betting on and, of course, that's what always happens. the opposite direction of where consensus is. take a look, again, today, it's technology, communication services, stocks that are doing well, and we are seeing banks and consumer staples up a little bit but they're lagging here. we are waiting for this historic high. let's review again, we've done this many times, january 3rd 2022, the high was 4796. we passed that on an intraday

4799. the low this year was the 4th of january, 4688. down year to date. everybody two weeks ago was saying this is the garden variety correction, down 5 to 10% and tech stocks will come down and, of course, they can't rally. guess what? that's what happened. the market goes against expectations. take look at where we are in terms of sectors. big cap tech the big mover so far. you see what's going on here. there's tech and communication services and financials and consumer staples. put up cap tech for the year only apple is lagging. everything else is at a new high. microsoft at a new high, nvidia at a new high, alphabet at a new high, meta at a new high. everybody said nvidia can't be up another 10% in a month. well guess what, it's up 16% in a month against expectations. the problem the rest of the market is not cooperating. outside of tech, the only thing

that's rallying is health care that's having a little bit of a moment because it had such a terrible performance last year. consumer staples are up 0.2%. energy has been a terrible performer. real estate has been terrible. banks have been down. they are up today but generally the trend since earnings season banks have been down and consumer discretionary is down. the s&p 500 is down 2%, the s&p is up 1%. back to tech, back to la meanting oh, when is the market going to broaden out again. again, go against expectations. finally an interesting ipo today on the nasdaq. this is one of the big ones of the year. a home builder last week. this is a kazakhstan based super. they do online banking and e-commerce. essentially they've got one like tencent with wechat, you can do anything, apply for a mortgage.

it's the biggest thing in kazakhstan believe it or not. they list in london and kazakhstan. this is a kazakhstan stock exchange. they had a good offering. a billion dollars. looks like they have close to $20 billion market cap. again, this super app used to be the holy grail, the app of all apps. elon talked about this, can we have one app that does virtually everything. ali pay was another one they tried, the government in china has given them a hard time. it's an interesting idea, super app out there. courtney. >> got our attention with the kazakhstan super app. thank you very much. we're going to turn to retail. bob mentioned consumer discretionary there. wayfair and macy's announcing plans to lay off thousands of workers, macy's cutting more than 2300 jobs. wayfair laying off 13%, more than 1600 workers for that company. that said, you have other

retailers still investing in talent. walmart raised starting pay for store managers to $128,000 a year and redesigned its bonuses program that will focus more on sales and less on profit. there's been this dichotomy going on in retail for some time and i do think it's also interesting to put macy's in some historical content. when these announcements came out, it felt familiar to me and with help from my producer we went back and looked and between 2014 and 2020 macy's announced layoffs and store closures every year almost at this time and in 2020 part of the restructuring plan did last over three years from 2022 to 2023. this has been sort of routine for macy's as it's trying to figure out what is the right size and shape of its company as the department store does tend to lose favor and more sales are shifting online and macy's does have a decent size online business. wayfair has been under pressure

but needham's says she sees cuts as proactive and not reflective of holiday, they are across the organization. wayfair had success in the early days of the pandemic and struggling since. a lot of things to talk about but a lot of nuance always in retail. >> the ceo made a name recently telling people to work harder and get back to the office and put in more time. >> that's right. i know. of course there's some amount of working hard and some amount in the business model you have to do some finagling with. it's an expensive operating model to run the way they're doing it. >> thanks, courtney. let's stick with retail. u.s. retail sales did rise to what was the strongest pace in three months in december. our next guest, though, has doubts about the consumer as we look further into the new year. joining us now is a charter holdings ceo and chairman of sunoco. ray, always good to have you. why the negative outlook as this year progresses for the consumer? >> so, david, you know, luxury

centers around the country what we saw at the end of last year was jewelry sales were very strong, but, you know, fashion and clothing has slowed down and we're somewhat flat. also, the retailers aren't expanding right now. in the last two or three years the pandemic high has been a sobering effect on them and they're going to be remodelling the stores but not looking at big expansions. credit card debt is at an all-time high. mortgage rates are reset. the consumer spending on the high end is starting to get cautious in their spending. we did have a good year last year but i'm cautious about going into this year. the operating costs are still high. insurance costs are through the roof. construction costs are still extremely high. so we're going into this year very cautious on what's going to end up happening. >> i mean, listen, you've been

right in the past with some of your predictions. i want to point that out. i am surprised to hear you negative. you're in texas. you have the outdoor malls. you have high-end stores at many of them. you've come on and been positive in the past. are you really seeing it day to day and week to week right now or more a sense you're getting? >> yeah. look, we have synergies in other parts of the country. it's flattening. we're also big in the restaurant business and throughout our platform as well, my friends in the business as well, you know, i can say whatever i want to say, because we're private, but discounts were negative last year across the board and, you know, food costs and commodity costs have been flat. they were still up about 3%. we're very cautious also in the restaurant business. so it's on the high-end luxury side i'm concerned there's so much debt and, you know, so many people as i do that their mortgages have reset and now

their mortgage has gone up and the excess money they were spending, the pandemic money is gone, a lot of the growth and the luxury brands was coming out of assessments people had from the extra money to spend. that's gone. you saw switzerland got pancaked a couple weeks ago because their stock was down and that's discretionary spend for what they sell. >> although richemont had numbers the other day. let me come to the real estate side for a second because you're a developer. what are you seeing there? if you own office space, even if you're in dallas, probably not the greatest place to be, but certainly around the country. what about sfloretail? are there problems developing, just way too high of a price and to reorganize you have to throw in equity that nobody has? >> the interesting thing in retail, knowingnothing has been in the last 10 or 15 years.

we feel good on the retail side. it's 96, 97% occupied across the country. retail is good. i own office that's bad. more gamings are gmortgages areg to reset. if you're in a reset period those are 8 or 9%. the real estate space is bad and going to get worse. you're seeing 96% lease because the mortgage rates have shot up so much. it's going to be a tough year. the interesting thing in construction costs, though, they have not gone down, and so i'm not optimistic that the fed is going to cut rates just because we still need to tamper down costs going up, insurance costs going up and construction costs going up. you've seen the rest of the retail centers including our own that have skyrocketed and doubled in the last three or

four years because of lack of competition, but how much higher can we take our rents? that's the headwind we're running into. >> i'm kind of wondering some of your earlier points if it's weakness we could be seeing from the consumer or more normalization? you said, you know, fashion and apparel spending was not that strong but i believe there's deflation happening in those categories. you might need to take that into effect when you're looking at sales and also the higher income consumer is often sort of the first out when it comes to any possibility of economic weakening. it's not always the entire consumer spectrum that follows closely behind. is this more of a normalization or is this the beginning of weakness? >> i'll speak from the luxury side. i don't know if you owned a luxury store that lowered prices on anything. deflation coming in on the luxury side. it's the accessories and people

that will shop for high-end fashion that aren't necessarily going to be there anymore because, again, their discretionary income is going away. the high-end customer is still going out. we have retail centers some of the highest in neighborhoods in the united states. they're still shopping. but it's the ancillary buyers that are coming in that i don't know if they're going to be there this year. >> and ray, finally, we came to you during the pandemic to talk about the labor shortage or a little bit after because you run restaurants as well. what are you seeing in the labor front when it comes to, for example, some of your restaurants and the like? >> no issue at all. labor, especially in texas, labor, we just put up a new restaurant in houston, easy to staff. we employee about 2500 employees. no staffing issues. there is wage growth like i said around 3% last year, but it's very controlled. >> all right.

ray, good to get a take from you, and an interesting one as well. appreciate it. >> thank you. >> you're welcome. we're back after this. oh no, a rash. maybe it'll go away. awww, how am i going to find a doctor i'll actually like? is that a qr code? dr. stafford makes you feel at ease. thanks rash! you've got more options than you know. book now. 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.

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it's going to take several years, everything that we see, before people feel they're fully back and able to get back their life experiences they wanted. there's no way one summer of heavy travel for europe is going to quench that desire. that's going to be a phenomena we'll see several years coming not just to europe. asia will be a bigger part of the picture as well as south america. >> that was delta airlines ceo talking about travel getting back to prepandemic levels. let's stick with the travel sector. direct spending on u.s. travel is projected to top $1.1 trillion this year up 5% year

over year. our next guest is warning business travel and international inbound demand is struggling. jeff treeman, u.s. travel association president and ceo joins us now. i understand you have a new survey out and a little do wer inbound. >> i agree demand is off the chart writ large but where the u.s. is struggling is welcoming the international visitor to the united states. at the end of 2023, we were only about 75% recovered. at the end of this year we may be 85% recovered at a time when other nations around the world are exceeding prepandemic numbers when it comes to visitors. these overseas visitors spend about $4,000 per person per visit to the united states, so the consequences of them not coming here are extraordinary. >> that is a big deal. i know i cover the retail sector and i've spoken with the retail ceos asking them this question

and the expectation for international business tourism and associated spending and most like you are not that opt optimistic, but doesn't that have a lot to do with the dollar? >> i'm sure the dollar plays a role a variety of issues that plays a role. what's in your control? what's in our control is how do we welcome the visitors. right now people from india, brazil, columbia that want to come to the united states have a 400 day wait time to get an interview for a visa to come to the united states. a lot of people when they land at our airports they have a two-hour wait to get through custom, that's within our control. i would suggest there are things beyond our control and that we could do to be more welcoming to travelers and unfortunately at a federal level we haven't made this a priority. >> well, i mean, longer term, you know, infrastructure, but that's going to take quite a while, isn't it? >> it is going to take a while. when you look at the infrastructure here we're competitive with what's going on around the world.

where we're not competitive, a new study that shows this, one facilitation, when it comes to visas and customs, when it comes to tsa lines. for the 65% of travelers who aren't in tsa precheck, they're still doing the same things they were doing 20 years ago, taking belts off, shoes off, liquids out, while other countries are moving away from these approaches because they have new technology. when you look at national leadership this is where we're struggling. other countries are recognizing america's weaknesses and putting in place policies to attract visitors. china is erasing some of the visa requirements to bring visitors into the country while at the same time we lack any type of national strategy to really attract these visitors. >> interesting stuff. something we'll follow as a lot of economic ramifications for us. thank you very much for joining us. >> thank you. coming up after the break, chinese stocks on pace for their worse january in eight years as investors continue to be concerned about the stock prices over there. reports this morning that

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out of china this morning. concerns continue to mount over that country's economy, reflected perhaps in the performance of the hang seng, on track for worst january since 2016. let's get to eunice yoon in beijing, joins us from there. what do we know, eunice? >> reporter: all the major gauges, as you said, are down in january. and the selling among foreign investors as well as local investors continue to accelerate since earlier this week since the premier spoke at davos. the premier added to the gloom when he tipped the growth rate of 5.2% gdp, but then said that the -- said that the country was able to achieve that growth rate without massive stimulus. they have taken that to mean authorities are satisfied with the current state of economy and we won't see any major or

significant stimulus any time soon. today local investors were also unnerved by reports that china's biggest broker citic was, among other things, putting curbs on short selling. this is something we've seen in the past where authorities have either loosened or become much more strict about short selling as a way to try to control the stock market. but citic denied they were doing many of these things in the market reports, but they didn't mention short selling. so, that actually added to the gloom and a lot of investors have been talking about that this must mean authorities are worried that the stock market is going to continue to decline. this also comes with a backdrop of the slowdown in the economy, people are very worried about what they see as a tepid recovery since the pandemic. a lot of hope has been here that the authorities are going to step in in some meaningful way. it looks as though we have a report that some authorities are stepping in, but more to manage

risks. so, the latest reports there is that the authorities are looking to order indebted local governments to halt infrastructure projects in about 12 regions across the country. i think the government hasn't confirmed that, but those are the reports emerging at the moment. >> a lot of discussion this week in davos, in particular, about whether or not china is sort of demographically doomed. birth rate at a low, death rate at 50-year high and a lot of questions about this new youth unemployment figure they're giving us, which some don't exactly believe. >> yeah. in terms of the demographic numbers, it wasn't a huge surprise because this has been the trend for quite some time, but there has been some discussion as to what it actually means. does this mean that china, just like japan or south korea, is kind of just naturally developing into a situation where people just don't want to have as many babies, or is this

a sign that people are feeling much more certain about the future. so, because there has been this deep selloff, people don't want to have more babies in this kind of situation. now, in terms of the methodology of that youth employment figure, it's very difficult to say what it all means. the number looked a whole lot better than it has because consistently the authorities decided to suspend that youth unemployment number six months ago. it was clocking at about 20% unemployment for young people. now it's at 14.9%. so a lot better. the authorities say it's because they're not including students in this number who are looking for part-time work. but the question is you can actually be a student or decide to study, but maybe you decide to do that because you can't actually find any work, so it's difficult to say exactly how meaningful this change is. >> yeah. of course, eunice, continued

questions, to your point, if there isn't stimulus, do they even lean harder on the export part of the economy and what does that mean, for example, for markets like ours in terms of keeping out those chinese goods? >> reporter: absolutely. >> thank you. eunice yoon in beijing for us. with the s&p and nasdaq both up nicely on the session, our market coverage continues right after this.

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good friday morning. welcome to "money movers." i'm carl quintanilla with courtney reagan live on the floor of the new york stock exchange. today spirit tries to save its merger with jetblue and maybe its business as a whole. td cowen will join us after warning of collapse. it's not just tech looking towards efficiency, wayfair and macy's both slashed their workforces. we'll get a look at energy and some of the stocks trading at a discount now to the broader sector. s&p energy the biggest laggard of the year. >> if we look at the broader market, things are higher,