we always appreciate seeing you and getting your perspective thanks again >> you bet let's take a quick final check on markets before we hand it over to our friends on "squawk on the street. dow looks like it would open up about seven or eight points. have a fabulous weekend, everybody. make sure to join us next week "squawk on the street" is next ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at post nine of the new york stock exchange we do close out a powerful week today, five straight record highs for the s&p. and today, core pce comes in a bit light, lowest in almost three years, even as personal spending beats our road map, though, will begin with intel shares are tumbling. plus, bye-bye, magnificent seven. why jim is now calling it a super six-pack and inflation in the u.s.

consumer, both visa and amex say the consumer remains strong as price increases cooled as last year came to a close we're going to begin with the chips rally, taking a bit of a detour this morning. intel is dragging the sector lower after reducing their sales guidance for the current quarter. that overshadows the q4 beat company cites a number of headwinds, including a tough market for programmable chips, weaker sales in autonomous driving. jim, your point seems to be it's not really the race that matters here >> they left out, and amd is clocking us. this was one of those quarters there's a guy who's the cfo named david. i met him. he's from -- a total heavyweight from micron, and he had to lower the boom and talk about margins being at 44% david, there were people who were looking for margins to be 60%. you know, other than humana, which is, like, the worst we've seen in a long time, this was quite shocking it was one of those things where i was waiting for someone on the

q&a to say, look, i want to be sure, david, you didn't say 44%, did you? you didn't do that 45%, 46% is there any give there? it's extraordinary i mean, i just don't know how they didn't just say, you know what because some of the analysts implied, amd's got our number, and one of the reasons why amd has been running furiously and should be up, not down, today is because intel's become a pitiful, helpless giant. >> downgrade today from needham, saying their core data business is challenged by direct competition from amd and a.r.m. in this case >> a.r.m. is the one that's doing the wrap-around for nvidia, and a.r.m. is doing incredibly well. people kept hoping that intel would win that business. you know, rene haaswood told you, we won that business from intel. i don't know why people felt that intel was winning that

business intel is going to have spend a lot of money it's not clear they're going to get a bang for the buck, and it was very disappointing after a big run. >> huge run last year. obviously, chips overall had a very strong 2023, but outperformed that on expectations for a strong '24. so, now what, jim? >> well, i think, you know, look, amd reports very soon, and lisa su, who's so good, i think will make it clear that it's a question of who has the right chips, and intel just doesn't right now. i mean, carl, to get these foundries right -- now, remember, amd uses taiwan semi to get the foundries right, to have what the customers really want takes a very long time, and i think that what happened is that we got very bulled up on the idea that intel was going to be ready with something, and they're not. and this just was a severe

disappointment mo mobile-i was a disappointment. >> at least they preannounced that one >> yeah, they preannounced that. logic chips are disappointing. they're bringing down the complex, and that's wrong, because the complex is the winner, and intel is the loser >> when you say we're due for a bruising, do you mean in chips, in tech? >> in tech, just because -- i mean, tech is just so far ahead of everything else i just would like to see it calm down there are -- there's such resistance to being in so many other sectors and a love for tech that it makes it so that we're kind of -- i don't want to get back into that moment where -- we may have to, where there's only seven good ones but last night was a victory for the people who say, you know what, this one, tech's too far ahead. and zinzer, who was so good at micron, i mean, i thought it was -- i detected pain i detected pain in his voice >> what are investors supposed to do when the guidance from outside tech, dupont, 3m, you

want to go on and on even texan >> i know some companies that are doing quite well microsoft, amazon, meta, alphabet david, those are -- they could be big winners >> this other one, nvidia, i hear -- >> i don't put that because -- >> it's in a class of its own? not even in the doing-well class? >> have you seen optimus, the youtube video? >> i've been showing viewers optimus a number of times. was being assisted when it was folding the shirts, but we showed about the egg and then of course the dancing >> so, let's understand. that's an nvidia product and jensen huang, da vinci, optimus picks up an egg. what jensen has are robots picking up jell-o. think about how hard it is to pick up jell-o >> i didn't know they were in the robot business, nvidia

>> it's something jensen likes >> but they don't have a name for their robot. >> he has a room of robots >> you have to name the robot. >> if you name them, you can't crush them you can't kill them. he thinks they're going to come alive. but he does reward them with, like, dog treats ones that get the jell-o up, they get a reward. >> i want to see the video of this i show you optimus i want to see jensen's robot >> first of all, nvidia's robots have a sense of humor. i think that musk just wants to take over the world. nvidia, jensen, just wants to show they can pick up jell-o >> so you think jensen's robots are going to beat elon's robots? >> are you kidding me? jensen's robots come, and they have arms. they can sprint. >> can they do that? >> that's nvidia chips that's a totally derivative -- he said on the conference call, the call that made it so there's

no longer a magnificent seven where he said, nvidia has the edge on me that was incredible. he just basically flatout said, look, i don't have anything. nvidia's got it. >> you're talking about musk on the tesla call >> yes, that was a moment of truth when he said it's nvidia >> there is an argument. i think goldman put this out last night there is some strength broadening within tech ibm. s.a.p. now. verizon, asml. >> i think you can go with that. i do think that, for instance, last night, western digital reported a good quarter. people think it's a bad quarter. that's not true. kla reported good quarter. people say it was a bad quarter. that's not true, because they're straight out -- all the capital equipment they have is good. asml the best was lam, and that's because we're finally -- the inventory has been worked off. the destocking is now over i want enrico to say something good about hp. every time i want to buy hp, he manages to convince me that it's a big mistake. interesting ceo.

no, jim, please hold off i don't want you buying my stock. don't get ahead of yourself. >> don't get ahead well, does that go back to intel as well? >> no, they're -- >> they're amd >> they're amd, yeah >> okay, so if i'm an intel bull, what am i latching on to this morning >> the -- carmen the matador scene? you know, when they kill the bull >> in what movie >> in "carmen. it's an opera. >> i don't go to the opera >> they kill a bull in the opera. you have never seen "carmen" you are a philistine >> i am. >> he's a philistine >> that is a fact, my friend >> i ain't no philistine >> can you explain to our vio perhaps are not as familiar with the opera, what this scene is about? >> the picadors, they chop --

>> i've been to the actual bullfights >> but i'mjust saying that thi was the bull that we thought was going to possibly give us great 2024 numbers, and instead -- >> it's a bull reference >> the first half is bad when you have those stories, carl, where the first half is bad, you know, that's just hope. oh, don't worry about the -- okay, the first half is bad, but -- >> right what about the argument that guidance in january is always bad because there's no upside to promising for the year >> well, i mean, some companies are doing so well, like american express, that they -- they can't help themselves but give you a great number now, of course, the chatgpt headlines initially said they were weak, but that's because they lost a fortune in argentina. if you even brush near argentina, you lost money. i think if you flew over argentina, you lost money. american express is a good example of what i want like, look, business is so great. we have no choice. >> we're going to talk more about amex there's a ton of interest within

the quarter. meantime, tesla is set to open a little higher this morning a day after its warning sent the stock tumbling 12%. tesla is the only mag seven name now in negative territory for the year, down 25, and this is what jim had to say about that slump on "mad money. >> someone who has among the first to vocalize the magnificent seven rubric, i officially acknowledge now that there are only six left. a super six-pack as for tesla, time to move on. >> so, today, jim, we got edward jones cuts, wedbush takes it off best ideas >> that conference call was just so horrible. all i heard -- you know what that conference call was like? it was like a ford call. >> that's really saying something. >> well, i mean, like, well, they kind of -- if the economy were a little bit better i'm having fun there with jim farley, but if only the economy

were better, if rates were lower, it's all about affordability. if i want affordability, i'll go buy the stock of gm. i don't want affordability i want to make it so, like, there's -- i want it to be like rivian where i'm visiting today in williamsburg. >> to be fair, rivian stock is down 36% for the year. >> well, i don't mean the stock. >> well, okay, but you are all about stocks that's all you're about, in fact that and apparently the opera. >> can i just say that that was just to promote my rivian, and i wish i hadn't said it. >> you can take it back. >> look -- >> my point is that lucid, rivian, lesser players on the ev stage but nonetheless, not insignificant companies, are getting crushed this year. >> merely a player, david. >> i got the shakespeare reference. >> thank you now, what bothered me the most was not the fact that it was just about affordability it wasn't just about that there's a moment where he's talking about they're not ready

with the new products. it's the idea, what happens if he doesn't get what he wants in terms of the two classes or the jump to 25 what does he do? he doesn't give us an out there. >> i don't know what he does i'd like to know perhaps he and i will sit down again at some point and have a conversation about it. >> i would love that if you would, because i would like to know what his next act is. when i listen to that conference call, other than when he said he's going to sleep on the new line -- >> no, no, it is a concern for shareholders, the idea that he really is advocating for dual class so he can have more voting power to control things like optimus and a.i. >> and isis. >> by the way, always point out, he does have another a.i. start-up outside of tesla for which he is potentially raising money. i've been hearing this for a while. the "ft" has now reported on it. that's a separate thing as well. >> really quick, jim two things one is lg energy warns about

slower battery growth this morning. >> right >> and then ticker l.i.t. is the lithium etf. that's a 39-month low. this is not just a tesla issue >> no. the only thing that was good about all those costs was that there was an aside by musk that maybe copper -- they could use a lot less copper. but he did not address -- musk did not address the ennui situation. he did not address the bomb that was dropped by steven schurr at hertz. really hurt the company, it's been in a freefall since they mentioned that they bought a lot of teslas. >> the hertz situation is fascinating, bulking up in evs and then finding the repair costs were quite high and the secondary market prices were low but taking the hit and selling how many of what they bought a decent percentage. >> oh, yeah. >> a third of the fleet. >> yeah. >> it was a third. >> but it was a major mistake, and of course, a lot of people don't know how to drive a tesla,

and there's the number of rear end accidents -- >> because when you take your foot off the gas, it slows down faster than you're used to >> people are having accidents, and there's, you know, they never -- hertz, i think, didn't believe that that would happen they were going to trade them like they were trading stocks. well, these aren't stocks, david. i mean, it's just -- they're just not stocks. and i just think that that conference call was -- that was a seminal conference call. that was a conference call about a guy who was kind of bummed an activist like the greatest-performing stock of all time >> that's ridiculous >> i'm just repeating. i don't fear that he should fear an activist, but -- >> well, no, he didn't really say that >> he said you could -- >> he made a broader reference to the fact that, yes, somebody could come in and say that >> well, can i just tell you >> he's been too crazy >> i've been doing the show for 19 years

>> wow >> it will be the 19th anniversary. this was the most feedback i've ever had from a piece, from ceos >> what piece was that >> the one we just ran a clip of >> really? that you got the most feedback from everything you've done in 19 years, and that? >> well, other than when i canned john stumpf with that interview. >> couple of tough interviews. >> i do tough interviews >> did they say you were being too harsh or too late? >> no, thank you thank you for being -- thank you for dealing with this arrogant man who has made all of us feel like that we're nothing, lilliputians, when in reality, we have decorum, and he has not a -- one shred of decorum. or as joseph welch said to senator mccarthy, shred of decency? no not a shred of decency people dislike the man you sat down with him.

>> yeah, i don't dislike him sorry. >> for the podcast >> i don't dislike him i think, you know, first of all, when you can sit across from somebody and ask them anything and they will answer it honestly, goes a long way for me >> that's called my wife >> when we come back this morning, we're going to get to a bunch of other names including visa, amex, spirit air's got news talk about paypal yesterday as futures now go into the red. more "squawk on the street" back in a minute. a car is a car... 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.

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market continues to be all about this number, the ten-year, ticking up a touch to 4.13% today. of course, after we got core pce, sort of ratifying yesterday's data core 2.9%, looking for 3%. prior, 3.2% as the disinflationary trend, at least in this country, continues

we'll get cramer's "mad dash," countdown to this final openg llf e ekn minute

all right, sheila, are you throwing a dress like a dad party, a birthday brunch, or a vow renewal for your dogs? yes! the right drinks delivered for any party. drizly. time for jim's "mad dash." of course, we count down to an

opening bell a little more than seven minutes from now final trading session of the week we're going to focus in part on american express that's the subject of the "mad dash." their conference call is going on right now, jim, important to appointment out. >> extraordinary, because what i wanted from intel, i got from american express, which is just a gigantic guide up. revenue growth, i think that people might have felt that he was just going to do 12. and this is an extraordinary story of people going out again. out to dinner. 11% growth at restaurants, and that's resy too, by the way. you know this is resonating with younger people global network of cards, over 140 million. the points are so loved. you know, steve's comparing cashback, which nobody really knows, hey, i got 1%, versus points, which, by the way, young people love. they love points, because then they use them to go take trips, and they get the little cards,

they're all excited. this is the juggernaut that should have been -- i mean, the whole time steve's been consistent, but it's finally getting credit because steve is remarkable >> jim, this move right here -- >> that is because he said that october was weak it was really weird, because october was not. >> that move right there, now they're talking about 9 to 11% revenue growth for 2024. has that been accounted for as a result of that move? >> yes, this got the shorts going nuts and people thought this was the beginning of the end of this incredible growth story. it wasn't at all steve said, look, october wasn't that good. he didn't mean to cause this hoopla, but wow. this is such a great story, david, and people should know that if this was the broad story. in other words, if people want to buy something, and carl and i were talking about, there are some things that are working away from tech, this is now the best financial it's really extraordinary. by the way, chargeoffs aren't bad at all

>> figure out your multiple there. >> i think this is a story that everybody can get their arms around, because all generations seem to have come to this story. i remember when we referenced carl mauldin well, no one's leaving home without this thing it's a remarkable time when, say, paypal, there's a guy, alex chris that was going to shock and awe us with all these special things well, david, he mentioned a.i. this isn't a.i., david this is business >> we're going to talk about paypal and get an opening bell in about five minutes. >> chris alex? alex chris >> alex chris, yes a.i. you can catch us any time and anywhere -- >> we don't want no stinking a.i. >> listen to and follow the "squawk on the street: opening bell" podcast. we're back in a minute

♪ (captivating music) ♪ (♪♪) the first law of thermodynamics states that energy cannot be created or destroyed. (♪♪) but it can be passed on to the next generation. (♪♪) ♪♪ ♪♪ ♪♪ ♪♪ ♪♪

>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. jim mentioned american express before the break jim, couple other things that we got out of the call. one is that restaurant spend crossed $100 billion for the first time, and then they gave

some multiyear metrics over the last two years revenue up 40, member spend up 37 >> these are extraordinary numbers. when i first saw it, and i was listening to becky, and she talked about it, and i said to myself, if i'm the fed, i got to worry. now, we got this pce number, which i thought was fine, not that hot, and then i started thinking, and you talk to steve. they are just taking a lot of share from everybody but people are -- they're doing a lot of doordash too. the country seems to have changed in terms of where we buy and what we do i have mccormick on tonight, and they're not doing that well at the supermarket. i think people have just -- we got to shift here. people don't want to make it they want to buy it. you're going to see from american express, it's very clear that the desire to go out is what's happening. airlines, not as good as i thought, but the desire to go out is almost insatiable in this

country. >> yeah. t&e, travel and entertainment, up nine. prior, 13. that was a little bit of a slowdown >> i just think this notion of what you're going to do at night has changed, and it's like, every night -- i'm not cooking you cook no more cooking. >> amex definitely going to help out the dow. push and pull between amex and intel on the 30. let's get the opening bell here and the cnbc realtime exchange at the big board, it is crude oil shipper ecotanker celebrating its listing. at the nasdaq, bright spring, kkr-backed home and health care services celebrating its ipo regarding crude, we're at the highs of the year. a lot of seasonal factors argued gasoline goes higher from here houthis attack the "uss carney." >> i've been a believer that oil

held at that $70 level, and it can go higher. i would say that the lng, the decision to delay these plants, these are long-term projects you really can't do what the president did if you're going to encourage long-term projects in this country i totally understand look, there's people, i'm sure david has a view about whether or not if you put so much infrastructure in for nat gas, if that doesn't hook people on nat gas. but there are other people who say, energy security dictates this is a good thing russia was 80% of the nat gas supplier to germany, and then it cut to 20%, but this pause of approval has shocked people who are spending fortunes building these incredibly important points >> there's a lot of business models built on the idea of increasing exports, and these are the export terminals that we're talking about that would go potentially all around the world. it's amazing what the germans have done, by the way, in terms of building the import terminals they needed to in such a short amount of time to help them take

that gas off of ships instead of it being piped from russia, which is no longer happening >> you're so right this is going to backfire. i don't want to be political, but i follow the rails it's just going -- csx is a buy off this norfolk southern is a buy off this what this does is they just pivot and go to coal they don't pivot i don't know norfolk southern's quarter. i want to be careful but csx, i thought, was a good quarter. union pacific was a good quarter. it isn't like they're going to pivot -- have you ever heard the german's rap on solar? it's not very sunny. >> it's not very sunny >> 29% of the time, it's sunny it's not philly. >> only 29%? >> they're kind of stuck it's not -- they'd love to pivot to solar it would be great. they say pivot to heat pumps, which is very positive that's something that carrier's buying, but then they changed the subsidies. i don't know who the president was advised on this, but they needed -- they're a little

misguided, and they needed to do more work on this. >> well, granholm did say, it's temporary. we haven't done one since 2018 and she said given the boom in exports, it's time to take a look >> nothing will change in terms of what is currently being exported or what is currently under construction this is just a pause so that we can have an assessment that is rationally based and then apply that assessment to those projects that are in the queue >> we're already the number one -- we overtook qatar >> yeah, but i was surprised there have been some really terrific pieces about how at davos there was a sense of, let's get away from short-term, you know, moving aggressively as we can to esg and think more about energy security because of russia and this really flew in the face of what i thought was a key

initiative for national security, because we spend a lot of money defending ukraine it was shocking for people who build these things shocking >> although, again, it's the plans for the new ones that are being delayed, held up right now. >> but you have to spend a huge amount of time and money just siting these things. >> without a doubt we know freeport, michael smith, so i'm somewhat familiar with it i do wonder why we don't have these smaller nuclear plants -- like, why isn't that becoming the thing? >> when you speak to larry culp about it, i think the world of larry culp, but you can't make up clients you can't make clients people just still don't trust it >> but i mean these smaller, nuclear-powered -- >> it makes so much sense. ge, the energy business -- >> it's got to be the way, doesn't it >> it has to be the way. did you see the fukushima

pseudo-documentary fukushima has come back -- there's another big, not just palestine and starbucks. there's a lot of boycott of japan because of water dumped from fukushima, but the fukushima documentary or docu-drama is very frightening because it basically just says, you had a power plant company saying, don't tell the prime minister how bad this is i just think the press for nuclear is so bad, david, versus the reality, which we all know it would be fantastic. >> it's unfortunate. >> i mean, it would be clean >> given the transition, and it's going to take a while as we all know >> canada's trying >> who is? >> canada. there's a small movement france has never backed away from it. we have to -- i think it's something we should push because we know it's emotional it's emotional against it, not empirical. >> back to the quarter >> colgate never misses, david

i'm so sick of -- they're like the niners you know they're always in the darn playoffs they got mccaffrey now colgate, great quarter, good growth >> it's fine i don't know don't get -- i mean, it's fine i mean, two years, the stock's barely up. come on. >> no, i'm just saying that i knew that the stock has been a total winner here, and it did a great number now, procter did a great number. >> just like amex, a lot of other stocks, have been winners since suddenly the rates weren't going to go up anymore >> i'm just saying, i mean, they've got this great organic growth they've raised price it hasn't hurt their business at all. they do high-end pet food. >> yep >> and there's just something really great about toothpaste. toothpaste is a good business. it's like, plastic and stuff inside it and they put whitener, and next thing you know, you're using it every day, and you order it on amazon, and i can't stop it. andy jassy, listen to me i got like 400 things of

sensodyne. i don't know how to stop it. >> you're on the auto. >> i'm on auto on gatorade and the "g." my wife says, jim, we have a pantry full of it. i said, i don't know how to stop it it just comes. >> it's another example, colgate is, where volume is a goose egg, and it's all on price. >> yes, it's all on price. >> that's going to have to change >> yeah. i do think so. now, mccormick raised prices and it really hurt them. and i thought it was very interesting because they make things that are not very expensive, but i just think that this business, we're now starting to see the business -- a lot of these stocks went down off higher rates, but a lot of them, even silly things like glp-1 hurt colgate they don't have anything that's impacted by glp-1. i do like colgate. my travel trust owns procter, and we can't believe we're up since procter had been such a poor performer in that group >> guys, the winner of the wireless wars this quarter was verizon. >> look, no, are you going

through the thing? are you going to the big meeting? >> no. >> you didn't get invited to the big meeting? >> i don't get invited to anything verizon are you kidding? my last interview with hans wessberg, i won't be getting invited to anything. >> it's the sound of music, verizon. >> like it's on a hill >> no, i'm just saying -- >> i have no idea what you're talking about. >> they're putting on the greatest play. they said, jim, you got to come to this thing. this is like, i can't believe i got invited. i've been so mean. but you know -- >> we don't know what you're talking about. >> there's a giant meeting, okay they're hosting. they have raised prices. it stuck a lot of people feel that -- it's called, david, an analyst day. >> oh. >> and it's february 5 i'll take you as my guest. >> verizon was really in light of t-mobile, which was ho-hum for the quarter. the most growth in terms of subs, postpaid without a doubt,

by far the largest of them but the ebitda guide has given a couple of people pause because it was a bit broader than typical or wider some of that may go back to this program called the affordability connectivity program it's been in the news a bit lately because it's going to expire we're talking about federal program offering eligible households discount up to $30 a month for internet service, $75 a month for households on qualifying tribal lands, and a number of other discounts as well they have been a beneficiary to a certain extent, and some of their service offerings, not pure t-mobile, but their assurance wireless business. charter is a beneficiary of it comcast, our parent company, somewhat as well it may run out soon. in april it may not be renewed. >> comcast -- >> comcast wireless is strong. this is broadband.

comcast broadband was not extraordinary. >> no, wireless. wireless was extraordinary, didn't you think >> yeah, wireless growth for both comcast and charter spectrum is very large and is by far the most subs being added. but that may be one reason why you -- and follow-up yesterday from our parent company to the rally off those earnings where, again, broadband subs were better than had been anticipated. they weren't up at all, but they weren't down much. >> t-mobile sandbags >> free cash flow was strong theme parks was quite strong back to t-mobile >> i don't think it was that bad. >> no, it wasn't that bad, and that's what the market is saying >> verizon is the winner >> verizon, surprisingly, had the strongest quarter, and it may be that they're a beneficiary not just of fixed wireless, which we saw 375,000 additions, but also just some people saying, i get enough on my phone and in my home. i watch everything on my phone >> you predicted this. >> and i don't need to have

anything else. >> do you remember when you predicted that, and people laughed? >> well, it is a question as to whether it can truly replace broadband, but for some customers, perhaps it's doing that because speeds are quite strong on some verizon services. wanted to point that out >> price wars are over >> and they did raise price. >> notifications on verizon started coming out i love how they phrased it too no need to do anything no action required >> it's so nice. they send it to you, like a nice little invite to your funeral. >> guys, jetblue-spirit deal may be in trouble. just wanted to share that. >> you think so? >> well, the 8k from -- >> from jetblue. >> thank you, carl i'm just reading it here as well the conditions to the deal may not be satisfied prior to the date set forth in the merger agreement, and accordingly, the merger agreement may be terminated on or after january 28, 2024 jetblue telling spirit that in

terms of those certain conditions being required not being met, of course, as we know, given the opposition from the antitrust authorities, the agreement of a federal judge, they continue to evaluate their options. you see what spirit shares, which bounced a bit on the fact that it appeared perhaps they were going to be moving forward with the appeal. >> yeah. i think people should move on if you're in the stocks i would move on. >> most have already moved on. >> that's not going to work out there. >> also got a bankruptcy filing from the brazilian carrier >> i remember when that came public >> layoffs, jim. we want to get to the list, and it's growing the last couple of weeks, but levi's in there as well 10 to 15% after this quarter >> that's a tough one. that's michelle gass has come in there, taking over for chip berg i think it's a great brand i don't want to -- i'll just say it they needed to do it

and that's good news k it's not good news if you're laid off, but they should run a leaner operation >> they do guide below revenue miss even though they beat bottom line by a penny. the list includes crm, few hundred. >> marc benioff is still well below. >> watching paramount. lows poll star with a report this morning as well. >> no, look, i think that when i see salesforce, they stay -- david, they seem to have a very simpatico with some of the tougher hedge funds wanted, and the stock is up on it. >> zuckerberg started it, man. i mean -- and he really started it just saying. that's it. and the others have now followed >> he really did the year of efficiency >> that was a moment >> people are getting -- if you're -- david, did you know that if you work from home, you're more likely to be singled out. >> it's funny. we all talk to plenty of ceos,

and i still talk -- we don't talk about it nearly as often anymore on air, remote work, but i still talk to a lot of ceos who continue to be frustrated. in fact, to the point yesterday, back to four days, but i got 5,000 people who are not coming in now, percentage-wise, fairly large company, not that much but 5,000 people, it's like, i don't know maybe we'll just replace them. you know >> really? >> yeah. >> that's major. >> because they're working remote, and they've been asked to come back that is a conversation i have had a lot. >> that's very interesting >> with any number of ceos who continue to be frustrated by those not being met. you saw that memo from b of a yesterday. >> the letter of discipline, i guess, is what we're calling it. but this "journal" data today, they're basically saying, last year, if you worked from home all five days, you're 35% more likely to get laid off >> yeah. look, i mean, they're all trying to -- i think most ceos are willing to accept friday

i think -- >> that's right. >> i think it's very easy to fire someone when you don't know who they are having someone -- having had to fire a lot of people in my life, if i knew the person, indeed, it's just more painful save the institution never fire anybody to make more money. you just prayed that you didn't know them. you prayed that you didn't know the person, even though, of course, that's a fatuous thing because you're taking someone's livelihood away no matter what, but it is a lot easier to fire a nameless, faceless person than it is someone who's right there. >> we didn't talt all. >> amex is up 12 >> any thoughts on visa? it's down $537 billion market cap, one of the quietest half a trillion dollar companies out there. >> they have expanded their visa direct relationship with meta. watching the ability for content creators on meta's family of apps to cash out their earnings to a debit card. they have a deal with mark zuckerberg

and i thought this was the beginning of something very interesting, creativity, visa, meta they spent a long time on it i thought it was very inventive by meta. very inventive >> capital one not far behind, jim. >> they know how to to -- they are such a discipline lender i mean, people don't realize that they -- i once got schooled by mr. fairbank, who explained to me how it really works, which is that if you -- you can lose a lot of money but make it all up if you charge people cards they're a better lender than people realize i've liked that stock for a long time >> that's almost a two-year high on a name where we've been watching like a hawk, provisions, credit quality, low-end consumer stress. >> they're just a great lender, and they know that they have to have a lot of provisions, but they figured out how to make money, even though they have a lot of provisions. some people are very good at their jobs >> yes that is true

>> and then there's -- >> uh-oh really you're going to say it >> i have to intel. >> i knew you were going to say that >> i have to fool me once, fool me seven times. >> intel shares are down on that quite disappointing quarter. and there it is right there. >> jesus mobile-i me. what a call. >> were you not impressed yesterday by paypal's 17-minute video on innovation? didn't do it for you the stock of paypal was up 10% from the time of my interview with alex chris last week until yesterday, and then it reversed. >> i'm going to be honest. i did not think it should have been down that much. i was surprised. >> what was it down? >> he mentioned a.i., and it went down. servicenow mentioned a.i., and it was up, and then it went down yesterday was not the day to mention a.i. >> bad day to stop sniffing glue, huh? >> david, honestly, it was not a

bad presentation i was surprised that alex chris was met with such negativity on that presentation. >> yeah. that stock, still down a bit up overall, though over the last week or so >> well, jim, at least when it comes to a.i., you've got these reports that the ftc is all over some of these deals. so, you'll have more to complain about. >> they were doing so good you know, they were starting to be sensible. i was thinking they might be -- get more rigorous, you know, but it's -- no no the ftc is back in that role of torturing all the companies that america likes. right? i mean, isn't that it? all the companies that we like, they go after. all the companies that have made our lives better i feel badly i said that i can stop the auto. i know how to stop the auto. the ftc is going to look into that cramer says he can't stop the auto i know how to stop the auto. >> he thought of the things he said earlier about the gatorade keeps coming >> i don't want her to come after me come after jassy

i know how to stop the auto. i can stop auto. >> just showing how your mind works. >> well, i can stop auto i didn't mean that ftc, don't blame me. meanwhile, the dow, definitely benefitting from amex, up 7% here, up 50 points check bonds as well. pending homes, going to be the last bit of data we get this week before we roll into next week and get some confidence data, the fed decision, the jobs number we'll be right back.

you're looking for week to date s&p gainers, it's all about the consumer netflix is going to lead you, america is in there, united, amex and discover where we got spending numbers today the spending number coming in 0.7 and looking for only 0.5

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50,000 vision pro in the march quarter. now they're saying listen they sold 168 and 180,000 we know that i don't know why they choose to make the note now but imply vision pro - >> i love the line 1% of the iphone penetration, $40 billion. >> isn't that unbelievable. >> i read that the install base is big. looks like that mike sievert is not going to be providing a vision pro to people who buy it. >> he's not a broadband provider. >> he made that point to me. kind of fuming. >> tonight and lions-niners or kc-baltimore. >> liners-niners line was 6.5 and went to 7 even though debo is still listed 50-50. i think debo practiced yesterday and really good and begging you to take the lions. so be very careful go with the niners and i do think that kansas city always finds a way to win. it bothers me because the gm of the ravens is sensational.

but i've never met money on draftkings going with the other side of the trade. >> all right you nailed last weekend. >> coach andy is unbelievable. >> and tonight, you've got - >> i have coach andy reid. no i don't. >> you don't. >> they don't need him i have rivian which is very, very exciting and those games are going to be incredible this is -- we're going to the williamsburg store in brooklyn my wife andrey going to -- well she drives, does most of the driving. try to test drive one this weekend. >> pretty good intel. >> not intel. >> not intel no. >> no. >> have great weekend, jim we'll see you tonight, "ma ne" 00.m. eastern time dow is up 28 back in a moment unlocking the power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools,

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you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. good friday morning. welcome to another hour of "squawk on the street. i'm sara eisen with carl quintanilla and david faber, live for you as always from post nine of the new york stock exchange take a look at stocks here in the early action bit of a reversal as the s&p goes enough on the session

the nasdaq, too, down about .75% we're capping a strong weekend coming off five record closes for the s&p 500 and the nasdaq 100. dow remains a little bit higher. take a look at treasuries. we did get the pce number the fed's preferred inflation gauge. we'll talk about it in a second. treasury yields move up 4.16 rick santelli mentioned 4.12 as one to watch wischich is where e closed last week we are 30 minutes into the trading session. here are three movers we're watching intel the biggest laggard on the s&p after the 2024 guidance came up short more ahead and the recent rally in the semis >> morale boosting remy conmetro and talk lvmh. keep an eye on tesla after coming off its worst day since 2020 the stock removed from webb bush's best ideas list more on tesla coming up.

last major ecodata print of the week pending homes. let's get to rick santelli. >> interesting features in the december read on pending home sales, carl and sara it's 8.3%, up, 8.3%. that follows a revised downward revision from unchanged to down 0.3% this is the best number going back to covid affected june of 2020 when it was nearly 15 now, here's the oddity if you look at year over year, pending home sales, what you'll find is that they are down 1%. why is that unusual? because it's the 25th consecutive month of negative year over-year change. now it isn't even a record the record was the credit crisis from '0 a to '08 when you had 34 month straight of changes and one other thing the highest

in intraday 2024 trade is 1019. highest close for a 10-year is 4.17 and as sara pointed out last friday we closed at 4.12, yesterday closed at 4.12 there's a lot of important technical areas right here for 10s to pay close attention to. sara, back to you. >> watching them with your help. thank you very much. rick santelli. as far as the other big data this morning that we got, you know, just it's been said but we're saying it again, just inflation progress, right. disinflation progress. the pce and we look at core, strip out the more volatile food and energy, and you see that year over-year number goes to 2.9% and the fed, we know, wants a 2 in front of that number. progress for investors, progress for the fed. the fed itself did not forecast it would be at these levels at the end of 2023. neither did the market, frankly.

i remember talking to fed chair, jay powell, last summer in portugal he didn't think they would get to the target by the end of next year guess what, they're closer to the target if you - >> by the end of next year being this year. >> this year. >> when he said it. >> and they very well could be with numbers like this i think it surprised everybody you know some economists look at the six month annualized numbe which you can do to smooth it out, 1.9% in december. that trailed the 2% fed target for a second month in a row. by some measures some economists look at, we know a llael braina at the white house does, they're at target which is amazing because they've done it without stressing out the labor market or sending our economy into a recession. far from it. >> hence, does it change any of the calculations about when the first rate cut comes >> we'll learn more next week depending on what fed chair powell says about it i think march is still kind of a toss up around 50% odds but the

odds increase they'll do something. now i think the debate is what is the destination be on rates are we going to get all the way back down? i don't know probably not howard mark saying the normal is not 0% world we have to get used to he thinks a normal closer to 3.5% in terms of the neutral rate where it doesn't hurt the economy, and it doesn't help the economy but that's going to be a discussion, i think, at the fed which is, okay, inflation is letting us cut rates now, where are we going and what do we need to be doing? as far as the progress, janet yellen has been on the tape and spoke yesterday the treasury secretary, she has been firmly in the we're going to have a soft landing and get away with this with lower inflation, last mile is going to be okay but then there's the question of why does everyone feel miserable? she says the inflation is now near term at close to the lowest levels we've seen in the survey and she's talking about the university of michigan survey, what she looks at for sentiment. i think americans believe

inflation is under control i'm not sure americans do because if you continue to listen to the polls or the political commentators or talk to ordinary americans, they don't feel it. which is just an interesting dynamic going into an election where the economy has been good and strong and the job market and so is wage growth and inflation comes all the way back down, and it doesn't feel that way. >> right prices moved up so far in a relatively short amount of time, the period of adjustment is probably longer until you feel like kay. >> and still higher from where we were a few years ago, which o think people feel as well. the savings rate was down 3.7% on today's numbers as well that's still in play the other thing we've had all these corporate results and the outlook from corporate america have kind of been mixed. some very strong, some a little more cautious.

here's the visa cfo, for instance >> consumer spend across all segments from low to high spend has remained relatively stable our data does not indicate any meaningful behavior change across consumer segments. >> good read there then the levy ceo sounded more cautious. >> momentum in 2024 we're taking a conservative approach to our outlook for the full year primarily reflecting a cautious view on the macro environment especially in the u.s. and europe. >> cautious view here's one from capital one. we've been watching delinquency rates. on domestic credit according to the ceo we believe normalization has run its course and credit results have stabilized. the 30 plus delinquency rate has been stable on an adjusted basis for a number of months now monthly auto credit began to

stabilize. auto delinquency and charge off rates have been tracking normal seasonal pattern since the first half of 2023 and continuing to do so in december. that might make you feel better about the delinquency rates. i would note it's very mixed to get commentary from consumer names like a levy's versus a visa i don't think the visibility is strong in terms of whether the economy is cooling and how much, and it depends on the income segment and categories as we've been talking about throughout this recovery. >> yeah. we mentioned in the 9, almost a two-year high on capital one which has been a name at the center of the discussion about the low-end consumer, balance sheet stress, on the lookout for higher provisions. it's hard to get a two-year high with all those things in acute mode. >> we're listening for the amex commentary as well people are watching the delinquency rates, the rate on credit card delinquency early ones is higher than where we were prepandemic autos around that. and the question is, is it

normalizing or deteriorating that is going to be something that we and the fed is probably going to discuss next week will be crazy because we get the fed meeting, the jobs number, jolts number we're learn a lot more about the underlying state of the job market. >> we've learned a good deal more given earnings from a number of companies this morning in terms of what it's meant for their stock prices for example, intel is on the move after results spirit airlines actually taking a hit right now. we'll get to that. boeing shares we've a been watching them for some time trying to hold on to some gains. you can see, after it fell another 5% so far this week. we're all over those names start with kristina partsinevelos and phil lebeau is here to break things down. kristina, on set, intel. >> intel. >> people were hoping for the turnaround story this first quarter guidance maybe not. >> really disappointing. if anything a lot of analysts were expecting the weakness but the plunge of the q1 guidance that caused this major 11% drop

in the stock right now much of the street was anticipating a weaker quarter but not to this magnitude. revenue guidance was 18% lower quarter over quarter below every single analyst estimate so for intel they have three core businesses, pc, servers, networking all forecast to drop about 11% in q1, which is actually a little bit worse than seasonality. the company also warned of a billion dollar impact in q1 because of three major factors mobileeye we saw weakness on thursday may autonomous driving technology, intel the main shareholder. the second point is promble solutions weakness, the specific chips made for specific tasks. i.t. budgets shifting to ai moving away from the specific chips and lastly the foundry business and intel still working through. the company did promise, though, revenue and earnings would increase quarter over quarter and year over year throughout 2024 after they get through the bottom or trough of q1, but the

street still isn't sold. i say that because there's quite a few downgrades, price cuts, needham downgraded to hold on data center weakness, goldman sachs maintains sell ratings a lot of analysts are on the sidelines. kla also posted weak guidance yesterday much like intel and to your point, sara, analysts are noticing just this weak guidance coming through for kla, though, this seems like there's a little bit more confidence about a path to recovery and why morgan stanley uses recovery for justification for its price target bump of $635 from 500. the stock is still down. shares of data storage firm western digital despite the inline report. concerns weaker memory shipments. that's why you're seeing the stock down 3%. >> the group and stocks have been strong, right they've led the market to start the year. >> yeah. there's really the divide between compute amd, broadcom, nvidia, those guys have been doing well and then the analog

texas instruments weaker, concern about double ordering within the auto sector, on semi would fall mobileeye and then intel, that is promising this year of transition seems like this year of transition keeps getting pushed up. >> data center, they're just not there. >> data center revenue in q4 was down 10% year over year and for q1 they're anticipating further weakness they have lost market share to amd but promising things will improve q2, q3, q4. >> had a big run up into the results. >> that's a good point it was a larger run-up than the smh and stock. i think expectations were a little bit too high going into the earnings why you're seeing the massive 11% drop right now. >> thank you kristina partsinevelos lot of news on the airlines including spirit dropping 15% right now. let's get to phil lebeau with the latest good morning, phil. >> good morning, sara. the reason spirit is down is

because of an 8 k dropped within the last hour from jetblue a short 8 k, saying that they are looking at the merger agreement with spirit and that certain conditions, certain terms are not met they can terminate the proposed merger after on or after the 28th, which is sunday. i bring this up because not only is that in the 8 k but next week we get jetblue's quarterly earnings announcement or financials and so you get the question here, and i know it's going to be coming, is this them setting up say sunday, monday, tuesday, we're done with this merger, then they have the financial announcements and they can to a certain extent wipe the slate clean and go from here no one -- no indication they have decided to terminate the merger but the language in the 8 k says they have that option as of the 28th. they are assessing all of their options when it comes to this proposed merger.

that's one story in the airline industry the other story, has to do with the 737 max 9 and the return to service. you've got alaska airlines bringing its first max 9 that has gone through the enhanced inspections that were approved by the faa and it will go into service a little bit later on today. yesterday we talked with ben mengu chshgs ri who expects all of the grounded max 9s to be back service within a week the total number of max 9s grounded for the last three weeks, 171 worldwide but the bulk of them are flown here in the united states. united having 79 alaska with 65. as you take a look at shares of alaska and united back to january 5th the date of the incident where the plug door was ripped off the alaska airlines plane this is what the shares have done. the united 737 max 9s those inspections have fun and the first of the max 9s is expected to return to service on sunday

take a look at shares of boeing and remember that boeing next week will report its q4 results. curious if they pull their guidance their long-term guidance to get up to 50 max 9s per month being built in 2025, 2026 and $10 billion in free cash flow. that's the long range guidance that they have had out there for some time. does that stand? we'll find out on tuesday or wednesday i should say when the company reports its q4 results guys, back to you. >> hey, phil, it's david on jetblue-spirit, i don't have great insight there in terms of reporting, but there is a possibility that they're going to use jetblue as leverage to get a price cut and then pursue the appeal that's always a possibility. >> sure. >> but i wonder -- >> that's a possibility too. >> from a larger perspective, do investors think jetblue would benefit at some price from acquiring spirit, or even the price as currently constituted >> i don't think that they think at this price, i think investors

do not think it's a good deal. if they can get a much lower price sure it's probably a good deal remember, the appeal of spirit for jetblue is in the aircraft, and the fact that jetblue needs to grow, it is confined in terms of how it can grow in terms of adding aircraft and pilots this is one relatively quick way, i say relatively quick once it's all approved and so forth f it were to go through this immediately bumps them up to more than 10% market share that's what they need to grow, and so it will be interesting to see if, in fact, you're right, david do they -- is this their way of saying to spirit, we want a lower deal we'll stick with this on appeal and we want a lower deal or if they walk away from it altogether an appeal most believe it's four to five months do you want to go through this for four to five months and think you're going to have a different outcome. >> certainly possible they get a price cut. they could just walk away. it's only a couple days.

thanks, phil. >> spirit bonds are getting hammered too as people wonder what the future is. >> i think those who believe it will be a bankruptcy in its future they have enough liquidity it's not that but certainly they're hobbled. >> hobbled all right. the saga continues with spirit down almost 16%. as we head to break here's our road map for the hour, the s&p comes off another record closing high next week is a crucial one for the markets shaping up to be the busiest week of earnings season. plus a fed rate decision and a jobs report. we'll discuss the setup for your portfolio. >> plus, it is the worst performing group this year, but could we see a bit of a turnaround if and when the fed starts to cut rates. we'll take a closer look. >> tesla shares coming off their worst day in about four years struggling to keep up with the rest of the magnificent seven which cramer has kicked them out of where the stock stands on the street, and its evaluation when "squawk on the street" continues.

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where are you on that? >> i want to be super clear. when we talk about our caution what we're really talking about is the market cap weighted s&p 500, which as we know has become extraordinarily concentrated in those, you know, top five, top seven, top ten names, however you want to define it. but we're not cautious about things to do, right. we know that the u.s. economy has been extraordinarily strong, surprising almost all expectations including the fed's, and that, you know, tends to be good for value oriented styles, for cyclicals, for end trills and we're encouraging opportunities there and opportunities, quite frankly in investment grade bonds as well, where we've been in the camp that says these rates are going to hang in there, yes, we're biased, you know, that rates are the to downside, but with yields

where they are they compete effectively with stocks. so lots of things to do. we're just not, you know, jumping on chasing that market cap weighted index right here. >> when it comes to the fed, i think we had a graphic a moment ago, we're still in the may-june camp i am curious how you expect the rhetoric at least to begin to shift as they prep the market for that time, if, in fact, that's what happens? >> yeah. look, i think the fed is going to have a tougher time because the data flow certainly since december has not on the growth side of things or on the labor side of things suggested any signs of weakness. the inflation data has been certainly a bit more cooperative, and, you know, we have said to folks we may have gotten a little bit too much good news on that score, where, you know, the fourth quarter related inflation numbers may be

exaggeratedly flattered by very low commodity prices, by the tailwinds on oil and gasoline prices, and manufactured goods disinflation that really has been accelerated by weakness in china. we think inflation might be lumpy. to answer your question, we think the fed is going to have to do a little bit of a rhetorical dance, certainly leading into march, but, you know, to get closer to mid-year, that's when this lumpier data i think could be challenging for them and i think they're going to have to start talking about cuts in the context of a broader program that includes potentially tapering their quantitative tightening program, which i believe is what this is all really about. >> yeah. i mean the market is excited about all of the above, lisa what do you say to people who

have been putting money into the money market funds that are getting high rates into cash we were expecting in 2024 that would start to come out as we've seen rate comes down, but it hasn't so should people continue to do that or should they chase deals elsewhere? >> look, i think we've been very clear 5.4% or those types of rates are at a 17-year high and we understand why they're attractive for people, but we've also signalled that they're likely to be short lived and we can't time these things and so as we go into a rate cutting cycle that really is when you want to put your cash to work, we have encouraged folks to put that money to work in a very diversified manner, as i said, you know, buying stocks, but buying them in a little bit more of an equal weighted or actively managed stock selection type

approach buying into investment grade credit, maybe adding some of the real assets and things of that nature and certainly for our clients who tend to be on the wealthier side, they can participate in alternatives like hedge funds or the private markets. >> well, next week is going to be a busy one. a lot more information headed our way. lisa, look forward to working over that with you lisa chalet. >> take care, carl. >> still to come, a look at one of the worst performing s&p 500 sectors over the year. we'll explain right after a break.

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with a partner that always puts you first. start for free at godaddy.com welcome back to "squawk on the street." before we hit the brake we showed you a mystery chart it is of the utilities sectors it's been a big under performer compared to the s&p. that's over the last 12 months let's get over to pippa stevens. she has more for us. >> that's right, david utilities were the worst sector in 2023, dropping about 10%, compared to the s&p's 21% gain making utilities worst relative performance in the last 45 years

according to wolf research the losses came as higher rates took their toll, but with rate cuts on the horizon, now could be the time to buy since the sector typically outperforms before the fed starts to ease according to wolf. utility companies are forecast to post year over year growth of 33% and far ahead of the overall market now on a stock specific level, aes nextera and sem pra energy are trading at the largest discount to the average analyst price target you can see there with the sect's valuation around 15 times forward earnings, american waterworks, constellation energy and southern are the most expensive, eversource, ae and nrg are the cheapest carl >> thanks. talk in a little bit. still to come, more on what this morning's inflation print means for the fed next week with moody's chief economist mark zandi and why he says the economy is, quote, crushing it stay with us

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welcome back i'm courtney reagan. the united nations highest court ordered israel to take all measures within its powers to prevent acts of genocide in the gaza strip but the ruling stopped short of ordering the cease-fire requested by south africa. former president trump stormed out of the courtroom this morning during closing arguments as the attorney for e. jean carroll was telling jurors that trump is a liar who thinks the rules don't apply to him writer e. jean carroll is seeking at least $10 million from the former president for the harm to her reputation from the comments he made trump called her allegations a hoax and a con job during brief testimony yesterday. the estate of george carlin filed a lawsuit to pull the plug on an ai generated special

uploaded to youtube. the video uses the technology to mimic the late comic's voice and style of humor and his family says it equates to theft of his work and called it computer generated click bait i'm sure this is not the last of stories like that we're going to hear back over to you. >> i was going to say. this is a whole new can of worms. >> yep. >> thank you, courtney. >> courtney regan. the federal reserve's preferred gauge of underlying inflation rising at its lowest annual rate in three years in december traders pairing bets on a march fed cut. moody's economist mark zandi joins us now it is hard to believe that we are here with 2.9% on core pce we just got this gdp report at 3.3% annualized, even higher nominal gdp. i give you credit, you said soft landing when everyone else calling recession. what does the fed do next? >> well, a cut is just a question of when

i don't -- march, may, that's six weeks, i'm not sure makes a difference i wouldn't argue with anyone who said march, but my sense is they'll probably push comes to shove wait longer to make absolutely sure inflation is at target or headed to target before they make that move you know, we're here you're right, very surprising. i mean even for me, i didn't expect we would be at 2% if you look at core consumer expenditure inflation over the past six months it's less than 2% on an annualized basis. we're here. >> how did they -- i mean, will it last? i mean, it's hard to believe that they managed to get the soft landing that they wanted, but i don't know, too much of a good thing >> yeah. i think we're -- yeah. i mean it's -- there's always going to be a struggle, but i think, you know, there's good reason to believe that inflation has come back in, inflation expectations are well tethered

and anchored wage growth is moderating, consistent with productivity growth you know, all the things that one would look at to gauge whether inflation is going to remain stable and low are in place, so i think we can state with some confidence things happen. one thing i worry about is oil prices very hard to forecast where they're going. a lot of cross currents in global markets and given all the geopolitical threat. if oil prices go back up that could scramble things for a while. barring something unforeseen, it just feels like, you know, inflation is back in the bottle. >> is it back in the bottle for ordinary americans you know, i talk about all this progress all the time and how secretary yellen is very thrilled with these results and president biden should be very happy and then everyone says you don't know what it feels like. we're still paying much higher prices than where we were several years ago, we're still not at the point we're all the way back down.

people are feeling the effects of high inflation and they're pointing their finger at the administration for feeling it. >> well, you're right. i mean, inflation, the rate of growth, has slowed back to the federal reserve's target, but the level of prices is, obviously, a lot higher than it was two or three years ago it would be like for staples, food is kind of at the top of the list of pain points for many americans, particularly lower and middle-income americans. rent is also a lot higher. rents have gone flat to down over the last year or so, but they're still way above where they were a couple, three years ago. energy also to some degree the staples that people need, prices are a lot higher for those things i get it it is a lot of financial pain. good news, though, is that people's wages across the wage distribution, high wage, low wage workers their wages are rising faster than the rate of inflation. with each passing month that

financial sting that people are feeling should feel less painful going forward. and, you know, i think six months from now, a year from now, people won't be as concerned about inflation as they were. now, really quickly to your point about blaming the administration, i don't think that's fair. i mean, i do think early on when we got the fiscal support, that did support and juice up inflation, but that was hard to remember back then, but back then, that was desirable inflation. we had been through a period of a decade or more of suboptimal inflation and we got the inflation that we were all hoping for since the last year two or three, it's more about the pandemic and the russian war has nothing to do with the fiscal policy. >> mark, i'll end on geopolitics, obviously, every day on new attacks in the red sea. thankfully not coming to much but diverting a lot of traffic price of oil has hit a recent high any thoughts of what that could

mean for economic growth if it continues to fester? >> lots of scenarios but the most likely scenario while disruptive, it's not going to get to place where, you know, things completely shut down and trade doesn't completely get disrupted here if that's the case, if what we're seeing now is what we're going to see going forward here, it is an irritant that adds to goods inflation but really on the margin at the end of the day, goods prices are only 2025% of the consumer basket, so if you do arithmetic it's no big deal. having said that, obviously, you can construct darker scenarios and if the trade gets shut down, that would be a bigger deal. you know, i don't think that's the most likely scenario >> mark zandi, good to check in with you on the fresh batch of data thank you for joining us. >> take care. >> mark zandi from moody's still to come, tesla earnings plunge erasing $80 billion in market cap for the name is the dip a buying opportunity or indicative of tougher times

ahead? we'll discussion with one former board member of the company after the break. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. - [narrator] this house is a generac house and you're just the person to keep it running because a proud homeowner has a protective instinct and frankly, the brains to know the grid is gonna let you down sometimes. that's why when the rest of the block is lighting candles and looking for flashlights, you're ready to rock and roll.

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tesla shares trying to get back some energy today after their steep drop yesterday worst day in a few years still on pace to end the week down more than 10% let's get to dom chu and see where things stand. >> carl, we are still a far cry away from where we were at the peak market value for tesla back in the early part of 2022 worth close to $1.25 trillion in market cap now under $600 billion for tesla, though, still over the last year up 15%, but again we've seen some movement down to at least shorter to medium turn to the downside on tesla how do things stand after the earnings report and where analysts have kind of tilted their coverage it turns out that a lot more are more neutral on them these days. tesla shares and the analysts that cover them have about 39% of them saying buy, 45% say hold

and roughly 16% have a sell. they've got a $221.25 average target price that's according to data from fact set that implies roughly a 20% gain from current prices where we are, so we'll see if that trend holds. then if you take a look at the way things stack up with regard to tesla's valuation from a price to earnings perspective, with the mega cap and technology names out there, forward price to earnings ratio, what you pay today in price for every dollar expected earnings in the past year, meta platforms at 22 times, nvidia at 29 times, microsoft at 33, and amazon at 42 and tesla currently trades with a forward valuation of 55 times earnings david, when you talk about the relative valuation, yes, these are not apples to apples they all kind of do different things, but to put it in the mega cap perspective, it still trades at a relatively rich valuation compared to other mega cap tech stocks.

i'll send things back over to you. >> particularly as estimates examine down for this year and next dom, thank you. our next guest saying when it comes to tesla he doesn't always agree with elon musk but he made the company what it is let's bring in a former board member to discuss. steve, always good to have you you've been positive and rightly so for quite some time on the company, on the stock, to search extent, but i wonder after listening to yesterday's call the competition that has come to the floor, the price cuts, lack of catalyst in 2024, where do you stand right now? >> look, let's give tesla where credit is due. they posted not one but three consecutive great years. they grew 71% in 2020, grew 51% in 2021, last year 19% those are great numbers. the challenge is going to be 2024 because they're in between new product offers model 3 and model y have been

successes. model y the largest selling vehicle in the world, gas or electric, stunning what about 2024? what they really need to catch up growth wise with the byd that grew at 70% last year and delivered 1.6 million vehicles to tesla's 1.8, they're going to pass tesla for sure, tesla needs to get that $25,000 model into market by late next year so for this year, you know, they've got three shots on goal they're telling analysts the first is the $25,000 model how soon can you get that out? the second is they're clearly a leader in autonomous driving robo taxi, three to five years out. interesting play that few talk about is the tesla energy division did $6 billion, growing at 54% a year. they're working on being essentially the largest utility. that's an interesting play those are numbers most auto companies would die for. 2024 is going to be a tough

year tesla is going have to execute on everything they do from opening the plant in mexico to getting a plant in india built to selling more cybertrucks. the chinese are coming. >> the chinese are coming. byd has an automobile out there that is a real competitor not just in the chinese market but in europe as well. probably never going to be here. so i wonder, are they up to it >> do you think that, you know, again, that timetable musk has typically been optimistic when it comes to the timing of things and sometimes wrong. do you think they can get there in terms of that model you're talking about to make them competitive as soon as the end of next year >> i think they'll get initial sales out by then. they need to do better the big picture, most investors don't fully understand we're living in an international world. tesla dom nates the u.s., 51% market share, more than everyone else combined. but we're now the second largest market in the world after china. china sold 8 million evs last

year, all of europe together did about 2.6 to 3 million u.s. and canada did 1.6 million. so where do you want to be number one china. so u.s. dominating -- tesla dominating in the u.s., dominating frankly in europe, but they've got to get out to that rest of the world because that is where the money is being made one other issue investors need to look at and that is for the last ten years when it comes to evs it's all been about range and price. now it's moving over to being about tariffs and privacy because as you point out, you know, will tesla, byd come to the u.s. >> they're absolutely coming to the u.s. they're selling here successfully they've started selling in europe but consumers are increasingly asked the question, do i feel comfortable driving a car with the chinese iot device that knows where i'm going, maybe listening in on me that's an issue. then the tariff issue is another one.

the u.s. needs to be careful on tariffs because we may feel good with the 25% tariff we've slapped on but there's a bigger auto market in china than there is here and if china reciprocates we may think twice about that. >> yeah. musk alluded to that what about the promise of growth in the u.s. market that was thinking back about dom's p/e lineup about how it's even richer value than some of the big stec tox -- tech stocks. the idea was that tesla is dominant, it's a leader, and there's so much growth are there questions now about the kind of growth for electric vehicle adoption in the united states, like are americans going to get there is that our future still >> there is no doubt every auto company in the world is going all electric and the simple reason for that is battery prices went down 14% last year and going down another 10, 12, 14% next year. simply put not only going to be

better, they're going to be cheaper. but the big issue is, you've got to, as so well in the luxury and middle market with the model 3 and y, they need a market for people that are first year out of college, teachers, the firefighters and so on they need that $25,000 mark. they they took a little too long to get there. they may pay a price for it. longer term, the company looks great. >> real quick, if you were on the board, how would you react to musk's discussions/asking for this more voting control would it be something you would say, sure, you can have more voting control >> thankfully, i'm not on the board right now. we just lost $80 million market cap. shareholders have spoken on that it's tough for the board, elon has made this company, but do i see them giving him $80 million bonus or 25% control of the company? i think that is a longer shot. plus, he has his own a.i.

company so there's an apparent conflict i think that is a stretch. we'll see. >> steve, always appreciate it thank you. >> you bet after the break, shares of remicontro on pace for the best day in two decades. >> all luxury stocks following suit, including lvmh what is that saying about the consumer we'll have that next

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good day so far for luxury stocks after results out of multiple companies this week let's bring in robert frank for more from the man, of course, who knows all things luxury. robert >> good morning. we're looking at $80 billion rally in these luxury stocks today. lvmh, that's having its best year in 15 years remy cointreau having its best year in 50 years lvmh adding $20 billion in wealth today because there were so many questions about luxury at the end of last year. lvmh answered those yessed asia ex-japan up 15% china is really strong no one expected that and the u.s. was strong, up 8% so, this is even carrying

burberry, which had a terrible quarter, but others are looking at the results saying maybe things will get better the rest of the year. >> explain some of this to me, then, particularly china, where we continue to hear the economy is weakening, consumer demand is not particularly strong. what explains this >> i wish i could explain it, david. i was very surprised at these numbers. you look at the macro economic data in china, when i hear about what the wealth are doing, they're trying to get as much money out of the country as possible but they are spending on luxury. they're not spending in europe as tourists as much as they used to that is still down about 30% for lvmh pre-covid within china, maybe because the wealthy don't have many investment opportunities right now, they are buying a lot of luxury >> and what explains burberry? to your point, it's up today but it did not have a good quarter

>> no, burberry created a new line they raised prices dramatically without proving there was a commensurate increase in quality or design. they've got their own sort of creative problems. the rest of the sector, especially these must have brands, cartier, riche mont, they're having a great beginning to 2024. lvmh in their guidance yesterday said the trends continue, at least they've seen it in january. so, investors like that as well. >> i mean, earlier this week, we were talking about this with ralph lauren ceo, whoi spoke to, who was very bullish on china this year, they're coming off a lower base, but continues to see growth i also thought the sephora numbers inside that lvmh number, 25% growth, business is surging. is that within the u.s.? >> it's the best performing part of the lvmh. many people don't even realize lvmh owns sephora.

beauty, health, that's a strong trend within every company sephora crushing it in the quarter. >> robert, thank you for the update you can see many names right there. again, interesting strength in china and here as we just pointed out in the u.s. speaking of strength, markets continue to show some resilience as well the s&p is up. nasdaq underperforming a bit there versus the broader market. nonetheless, up as well. we'll have a lot more coverage of our markets and the european markets. that's when they close next hour live market coverage continues right after this a force to be reckon with. no, not you saquon. hm? you! your business bank account with quickbooks money, now earns 5% apy. 5% apy? that's new! yup, that's how you business differently.

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good friday morning. welcome to "money movers." i'm sara eisen with carl quintanilla live on the floor of the new york stock exchange. today former imf managing director john lipsky joins us at why the fed will be slow to cut and his reaction to this week's strong data. is the ev revolution already starting to lose their charge? the b of a economist with that call. can they spark a return to former ipo market?