going to the polls if you look at years when the u.s. election as a leader, when the results are going to be close, markets tend to be more volatile to the downside, so i think that could be another headwind for the second half of this year. >> saira, thank you very much for joining us today great to see you folks, that does it for us for the week we're going to head back to new york city. andrew, we will see you back there on monday. we'll see all of you there on monday have a great weekend, everyone right now, it's time for "squawk on the street. ♪ 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 stocks weathering some cross-currents as the jobs number has its hottest print in a year upward revisions, even as wages rise above estimates ten-year is a little suspicious, just flirting with 4%.

our road map begins with all the super six pack earnings now in plus we got that latest jobs report, and it did show the u.s. economy added 353,000 jobs in january. that was far higher than expected later this hour, we're going to talk with chevron ceo mike wirth. the company reported earnings, along with the other u.s. giant, exxon. let's get, first, to the big tech earnings, starting with apple, moving lower now despite this quarterly beat, ending four straight quarters of revenue declines year on year. china did miss that overshadows some growth in services and the iphone, and jim has been busy on this vision pro rollout today. >> i wanted very much to, in my little, you know, chance, the window it have with tim cook ths morning when they unveiled the vision pro, to talk about what really mattered. i said, all of this is really terrific, but how about that first hour in china in april 1 what's that going to do? david, you have to understand,

you're a cynical older guy i, on the other hand, welcome the wonderment >> naive and hopeful >> so, when i see something as exciting as this, i don't say, that's an asterisk, only going to sell 160,000. i say, maybe my life is different, which i shared to tim. it's tim, in the same way that it's sharon or lady -- oh my god. look at my hat >> did you get your special time with him he did do these selfies with virtually anybody who walked up to him >> look what he just did to me >> that's horrible this is exclusive access >> he just made me small i was the only exclusive, just for the record >> got it. you weren't right in front of the store. come on. let's get to apple's earnings. >> did you read -- oh, the earnings geez, what a buzzkill. china is one in five you need to see china up >> it was down 13% >> you saw the stock >> do they have it --

>> a problem in china. >> that's a great question and i would tell you, if i were working at estee lauder or nike, if i were working at starbucks, these have similar problems, and that is that the consumer in china is experiencing a once in a post-mao lifetime lack of capital to buy things. >> yep, yep. >> that's what's happening apple customer satisfaction is very high. >> it is very high and still the leader in terms of market share. that said, huawei has a more competitive product on the market you do have these government crackdowns that we hear about in terms of government employees being able to own apple iphones. >> we know of the largest cities that apple's still the 4 of the 6 in terms of payment. look, these are -- it's so hard, carl, so hard even for a moment to understand that the chinese may not have enough money to buy apple or that they may not have enough money to buy a triple

cappuccino if we had lalaxman narasimhan he would say, there are people selling cheaper coffee it's everything from apple to cars everybody who has an apartment feels like their apartment goes down they have a -- they have a deflationary problem where you do believe that if you just wait, the price comes down this is not unlike germany in the mid-'20s >> or japan more recently. >> you say, why buy now? you can buy later and it will be less that comes with a demographic challenge, versus india, where you have a stagnant population like japan, but i think if we sit here and say that apple has a china problem, we have to admit that nike has a china problem. anyone who sells has a china problem. and when you're listening to the conference calls, it's always the same "if it weren't for china."

there was a period where, it was -- >> exactly >> you're selling diapers in china. >> they did have actual revenue growth for the first time in basically a year >> for this quarter. >> my question would be, what kind of a multiple do you pay for this stock >> that is the tough thing on the one hand, you see what i saw today, and you say, look, forget about it. just own it, and this thing is going to work. and you may have to go through a valley like you did in 2013 or '14. and on the other hand, says, okay, hedge funds, yeah. you can leave it i hope you get back in in time for if something happens how long can president xi continue to do nothing, ignore keynes >> citi's got a report out today, when will china's gdp surpass u.s. gdp baseline, early 2040s, but we no longer see it as inevitable. >> how's never never good for you >> you mean, like, when you want to see me for dinner on thursday >> it's that famous -- but it

may be never >> it may be never i think this country -- you know this better than anybody, but this is a country that made -- that made a big bet on real estate, and i remember -- i'm old enough to remember what happened in our country when we made a big bet on real estate in the '80s it almost brought the banking system down. now we just have new york community bank there were people who made giant bets, and i remember i used to bank at union pacific, and it disappeared. >> i was reporting on banking back then. let's get back to tim cook did he happen to mention to you what their plans are on a.i. i mention that because it did come up on the call. they've done very little publicly when it comes to meeting challenges from competitors, but there's also a bullish case that says, you know what over time, you're going to need to have compute power moved to a certain extent to the phone -- to the edge, thank you -- that needs to be done at the edge

you'll have a thin large language model if you want to call it that, and therefore, that will require more powerful chips, which will require a shortened upgrade cycle, which would be good for apple. >> they came so close to saying that i know that tim doesn't want to get over his skis, as he would tell you, but that is the real saving grace it will not necessarily be what i saw today with the vision pro. remember, vision pro, i keep hearing about the price, how much, but remember, you can borrow money to buy something. you're allowed to do that. i don't know if you -- it's called credit. >> really? i'm going to go on a -- >> once you try it, david, you're going to want to think about buying it, and i only say that because jim's tried it, i've tried it, andrew's tried it our whole crew and production staff have tried it. there's a video. >> did anyone say they didn't like it? >> i don't think so. >> i was talking to tim about when i take my contacts out. when i take my contacts out,

david, and when i see -- is that sara no >> sara is ubiquitous. she's everywhere >> she lives ambitiously she even admits that she's ambitious. that's fantastic i, on the other hand, am not ambitious. >> no, not at all. >> i say to tim, whoever thought that there should be this screen 20 feet from you so, like, when you're in bed, you're looking at a basketball game, and you think it's the sixers, and it turns out to be the knicks, okay that's not bad, because the knicks look really good. but that's the point he was saying the same thing like, how -- >> everybody -- so, every single person has tried the vision pro but me you guys trying to tell me something? >> yeah, your life is shallow and without any meaning. but i was telling tim -- >> wait, i'm an old, cynical man. >> why would you ever put the screen 20 feet tim said, yeah, exactly. there are a lot of things, to each his own you're going to find out what you want on it, but the number of features are incredible he's trying -- he made the case to me last night before the

conference call, the b to b, jim, you're not thinking b to b. he mentioned walmart and people who do contracting and they're going to look and see if there's cracks in the ceiling. >> disney plus out today >> and i made a -- i think that i was telling dylan ree back, who works with me for "mad money," the idea that -- oh, netflix is not going to write for it yeah, okay >> over time, it will become -- there's no doubt it's the beginning of something of important. at $3,500, though, it's going to be a relatively small population of people who can be first adapters >> it may go down in price >> i assume it will over time as every consumer electronic gadget does >> i think the juxtaposition of watching the stock go down and knowing if anyone tries it, they'll want it. >> you said, why don't you try it before you sell the stock >> they'll never do that they've made up their mind that when you put something on your head, you look silly what did cavemen do? they didn't have glasses

>> you guys are both believers can we talk meta, guys we spent ten minutes on this, and you go to fifth avenue >> i want to talk about amazon >> you get your picture taken with tim cook. that was just great. let's talk about meta, okay? >> cynical son of a -- >> at these premarket levels, the second best day in a decade and the fourth best day ever >> revenue acceleration, jim i mean, that's what i keep hearing this morning >> come on how about the number of -- >> it was incredible the fact that you can get that at this size company, other people talking about what was the fastest corporate turnaround in history with zuckerberg somebody was saying to me, how long does it take you to -- you buy a new house you get it together, takes you nine months to feel comfortable. this guy reorganized an entire company in three months. it's unbelievable what zuckerberg did, and we continue toe see the impact from it

they've spent $60 billion prior to this quarter in the metaverse. you don't even hear about it anymore. that's capex and ofpex. >> they did a billion in sales >> people are talking off a $27 earnings number in '25 and the fact that it will perhaps finally get what they believe is a higher multiple based on this growth rate. revenue acceleration at such a large -- >> it really is amazing. >> all i get this morning, as you might imagine, are very positive comments from those, not to mention the dividend now, $5 billion a year. >> let's have a dividend >> that may draw long onlies into the name who have previously been unable to own it >> i think that's right. i think the buyback is right i think this is a man who at one point says, turns out we don't even need this many people it was a very conversational conference call. it was like the least scripted zuckerberg conference call my favorite part was when he brings in -- let's see if david can guess. who did he bring in?

>> i don't know. >> nvidia. >> oh, of course >> he talked about the equivalent of 350,000 h-100 cards, which is their latest and greatest, and i was thinking, david, is that a blocking action let's just -- i remember when jensen huang, the ceo, was saying, listen, i have a great relationship with mark that's a dynamite relationship >> some of the doubters, even at this preopen, are saying no more family maus. what does that tell you? >> how about the fact that it's just because it's a dominant company? by the way, whatsapp, for the first time, we're hearing about whatsapp taking over this country, a secure business >> i've really come around to thinking that we operate better as a leaner company. >> isn't that great? >> yeah, that's zuckerberg from the call that got a lot of people's attention. >> head count down 22. that's incredible. >> they're basically down to where they were in 2021. >> they could fire everyone except for him and make the numbers. by the way, reels is going to crush tiktok you heard it from me first

do you know that he bought all this power because he doesn't even know what to do with it yet. he just knows he's going to have to need it >> that gets back to your point, why you've been bullish on nvidia fso long and amd. a.i. capex at all these companies, but amazon as well, here at meta, it's increasing dramatically, and that's got to be good, one would expect, for nvidia and amd >> definitely. i saw there was a price target raised to $800 we had super micro >> and then microchip. >> look, if you hit up smci, i think that's kind of the -- that's a good vision of what could happen here with nvidia because they're a partner. nvidia, i just want to say that the reason why a.i. really does work is speed, okay? now, tim is talking -- david asked me about tim and generative a.i., and he's sufficie suffusing all these different

things i don't just sit there and say, i've got generative a.i. everybody claims they have generative a.i., but they -- they put it in without telling you, hey, did you see what the upgrade was? it's a lot of generative a.i they do not do that. they don't beat their chest. >> the other thing it brings up is zuck's insider selling, which if he really thought this quarter was going to be a problem, why would he have sold then does it negate that as a tell? >> i have a view on that i don't think he knew how big the ray-bans were going to be. the first of the metaverse i don't think he did i don't think they're back-ordered i think it's going to be very hard goet you ought to try them. >> apparently i'm not allowed to try anything >> you download right to your instagram page, listen to what you want it's a life-changer. >> it's advertising that drives this company entirely at this point.

it's 97% of revenue. >> at one point, i tried to say that >> by the way, it keeps going higher, and a.i. is positively impacting the roi for advertisers as well. >> using different mixing met co -- metaphors, getting rid of david. it is an advertising company, don't ever think it's something else >> i wouldn't. >> amazon, everybody's talking about the north american operating margin somebody called it a game-changer for core retail profitability. >> well, i think that -- i think it's the first good quarter that you're going to see. now, brian, the cfo, like jassy is amazing, but brian was talking about how much they have cut out of a shipment of a unit. they cut out this quarter 45 cents per package, basically per unit but i'm using the per package as the rubric how do you cut out -- can you imagine the gross margins, the acceleration of that that's because of the

regionalization. 45 cents can you -- that's the leverage that you're seeing >> the operating leverage, those who like the stock, will tell you it's there >> who doesn't like the stock? >> i don't know. there's always somebody who doesn't like the stock, jim. and the investments have been made previously are seen as a tailwind right now to margins, to jim's point, and by the way, we talk a lot about shein and temu, but they don't seem to have impacted their business maybe target and walmart, i don't know but not necessarily that >> walmart's -- walmart's microsoft. >> they were significant, potentially, at least significant competitors. back to meta, by the way, they advertise very heavily, shein and temu, and there's this worry that you're going to apply some sort of tariff to the blowelow e $800 value >> have you ordered from temu? >> my household, i'm sure, has >> shein, i bought clothes for

my wife. david, the shein, the deadline of when you get it, 12 to 15 days i got it next day from jassy next day and not just because, you know, jassy wasn't -- jassy saends a lot of presents to my wife >> not a lot of people worried about the capex numbers. right now, we got ford, u.s. auto sales let's get to phil lebeau this morning. >> this is a snapshot of january, and in january, ford's overall sales, up 4.3%, and the breakout that a lot of people are going to be focused on, hybrid sales versus ev sales, and in january, we continue to see that hybrids, which ford has been way ahead of gm and stellantis in terms of production, well, they're reaping the benefits there, up 42% year over year ev sales, we've talked about that market slowing down ford ev sales in january, down 10.9%. as you take a look at shares of ford, keep in mind that we get

the q4 results next tuesday after the bell, and at that time, we will also get the company's guidance for the rest of the year, and that's important, guys, because they've laid out a lot of chess pieces in terms of deferring ev investment, pivoting as much as possible to the markets where the vehicles are in demand that is hybrids. obviously, pickup trucks vehicles like the ranger again, ford's overall sales for january, down 4.3%, guys we'll send it back to you. >> adam jonas yesterday, midday upgrade of ford, correct view of this this stock is not going to be down jonas is going to get on and explain why he's right, and jonas is right >> he says it's evident the ev momentum is stalling, puts our '21 target in play on this toggle of capital discipline, jim. >> i think he thinks that farley -- this is farley's time. and i think that jonas -- david, periodically, i mention him and

the reason i do is because he's rigorous but he also is a showman. >> right >> that's what we want >> yes >> he's the sinatra of auto analysts >> a lot of job is marketing so he gets attention paid >> well, he should he doesn't wear a pink jacket. >> listen, by the way, literary references are important being able to write well used to be important think about dan lowe he came to prominence because of his letters, because he wrote well all you english majors out there. of course now a.i. will write it for you. >> eye on the market is still one of the most entertaining things i put that right up there. it's not hemingway -- well, hemingway is just okay he's pedestrian. >> can gen a.i. just replicate that now >> conceivably but it will never replicate stephen king, who is the charles dickens of our era >> write a pithy analyst report on ford. >> but if you go back, it's really interesting, what does microsoft use it for summation.

they can summarize i bet you can summarize war and peace in a couple seconds or "anna karenina. throw self on tracks, next >> spoilers. ten-year, still flirting with 4%, and also big oil joining the earnings parade. do not miss chevron's mike wirth going to join us in about 20 minutes as exxon also prints take a look at the premarket we'll see what we hang on to here as the dow is on pace for its best week in about two months back in a minute i could use a little help. yeah, there's a lot of risk out there. huh ♪♪ hey, is this thing hard to learn? nah, it's easy. huh. you know, i think i'm going to ride it home. good thing you chose u.s. bank to manage and grow your money. with our 24/7 support at least you're not taking chances with your finances.

yeah, i think i'm gonna need a chair. oh, ohhhh.

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>> yeah. march is back in play, but not in the direction that people are saying this was, again, i've been saying this is an incredible economy. i know it's a little too hot but it's hard to keep a good economy down i keep thinking about i had cisco on they are the company that delivers to every -- a plurality of restaurants in this country, and they're trying to hire like mad. i had brinker on last night, which is chili's they need more people. every company i interview, they need more people that did not change. but they are willing to get -- they can get the people for a little less money. but we can't -- >> with people being laid off, it feels like we're getting announcements all the time >> the people at amazon getting laid off with like $300,000 people do you want them that's what they're making they're costing a fortune. that's what they were making >> well, not -- right. the corporate staff. >> the 27,000 or whatever that they laid off. >> yeah, they were not laying off people from the distribution centers.

>> no, but i'm saying that there are jobs if you want them. and the economy, i think if you're jay powell, you're very grateful that you didn't join the clack of march cutters >> what do you think he says on sunday night's "60 minutes"? >> that's a great question he's such a -- >> he's talking to a broad audience in that case. >> yeah, and i think it's good, if you go back to when he called the bottom when he was on the "today" show, he's a plain spoken, good person, and i think he will make people feel, you know what? i'm in a moment where if i do lose my job, i can get another job, and that's the kind of economy we have. >> explains the confidence numbers. >> exactly that's what i think he goes for. i think he also has to try to explain the dual mandate, which is not a term that most people in america understand. right? >> i would agree that most people do not know what the dual mandate of the fed is, yes i would also argue -- >> i had a dual man date tonight. i have dinner -- >> 95% of people don't know who the chairman of the federal reserve is either.

>> if it's jay, he'll be unknown on monday too. >> more, we'll learn with scott pelly sunday night >> i le ovscott. >> cramer's "mad dash," countdown to the opening bell, don't go anywhere.

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let's squeeze in a "mad dash" here as we get an opening bell in about a minute >> one of the things that you taught me to look at, whether it be visa or mastercard, take a look at the market cap one of them is oabbvie they're going to open with a $300 billion valuation, and they're successfully navigating one of the biggest in america, which is humana. i have to hand it to gonzalez. he doesn't do any tv, mr. gonzalez, but it is very unusual to be able to handle this rob davis doesn't have to do it yet. >> at merck. >> keytruda is still there but bristol myers is trying to navigate a bunch of exclusive.

i think any publicity, without becoming a public face for abvi, that's a very good job, and $300 billion is not going to -- it's hard to get that. >> let's get the opening bell and the cnbc realtime exchange at the big board, it is alto neuroscience ipo today. at the nasdaq, it is jpmorgan asset management we had flutter we had ameri sports, flutter, now this jim, ipo pipeline. >> now, yesterday, you had a great interview where the ceo came on and said he's going to use the money for growth, but in the prospectus, he said he's going to use money to pay down debt that was a bad deal. i have no problem saying that. this type of deal, when you have companies that have biotech, the first thing they do is go buy equipment from tmo and then they develop things and just when they're about to run out of

money, bristol myers buys them >> flutter, of course, a dual listing, but it is active or getting a little more active at the moment >> we have to be careful not to just recommend companies that are -- the deal's supposed to come at 17, and it comes at 13, and they really need to pay down debt, so therefore they don't have as much money the deals we're really looking at are more -- flut ster is a da listing, but klarna is a big company. i do hope we do a little more -- let me see, companies that make money like arm arm is so far the deal that people keep coming back and saying rene haas, that's what we need cava is doing quite well we want fewer of these chinese companies to come in, and they just crush it. just crush it. >> i want to come back to the overall theme, which is investors still do love growth, and boy, are they getting a lot of it at meta and amazon they're getting operating leverage, obviously, at these companies as well.

it also puts into perhaps more negative light, alphabet's quarter, in a way. they don't seem to be able to accomplish what zuckerberg did and certainly not in any time frame even close to the reorganization that took place at meta. and it is big tech managing its operating expenses, its head count, that seems to be really getting rewarded by investors, not to mention, of course, more in capex is being spent on a.i., and the capacity for that, and that comes down to the benefit of nvidia, for example give me a take on alphabet's quarter, in light of what we saw from meta, for example >> alphabet's not going to like what i have to say, but they've become too popaque for me. they say, we did well at youtube. that doesn't cut it. how about some figures for the nfl? was that a good thing or a bad thing? don't just say the production was good do your google cloud number, which is finally what we wanted.

how did that happen? they don't seem to want to tell you nearly as much, which therefore makes me very hard, david, to give a defense it's of the six-pack, it's the one that we've sold the most of because i don't understand it. they won't tell me and they also say, listen, search is not going to be impinged at all by generative a.i. but i don't know >> i don't know either >> they've got the gemini, and i fool around wit, anh it, and ita lot of fun in our office, we did gemini, what ceos very fired, and it had a list of five ceos who are currently ceos who they say have been fired i was like, maybe it's a way to look at the future like "the wall street journal's" paper tomorrow >> there was an interesting kevin russ column in "the new york times." he used an engine for search and he liked it, saying it may be his go-to instead of google. >> wow how about -- we didn't even mention amazon's rufus, the

shopping assistant >> i was trying to get a sense on whether rufus is going to do more than my alexa than when i come home and say, play van morrison that will be terrific. but they have more -- they have this three-tier product for generative a.i. that you can sign off on, and the people who were signing off on it had real uses it's not just trying to figure out what to do with it, and amazon will -- amazon, jassy is as transparent as alphabet is not transparent. >> right >> and jassy has more to lose from being so transparent, i think, because he's basically telling you his game plan. but it was remarkable conference call last night, and i think people should go listen to a plainspoken person, the ceo, who lays out the use case of their products in a way, carl, that makes me say, if i were in business, i'd be calling them and say, listen, i have this business, it has a hundred million in sales, can you tell me how to get to 125 they'll say, i'll put you in

touch with the person that gives you a 25% lift >> and then amazon's advertising business is not even a distant third anymore to meta and alphabet it's growing 27% a year. the gross margins on advertising -- when we talk about advertising, you go to the site, and all of it's advertising based -- in terms of what you're seeing for your results when you search on amazon's platform. that's an incredibly lucrative business and growing very quickly. >> i found myself thinking, let's see, we go amazon -- amazon is right now valued at -- you hit it it's like, oh, amazon's at $1.7 trillion. how about $2 trillion? do i hear $2 trillion? do i hear 2.25? what's the difference here really microsoft is 3 why shouldn't this be three? that's how crazy it is, david. that's how crazy these companies are so dominant. you have said, many times, sitting next to you, that when you look at any other company, it's like, what is the point

>> i mean, meta has been -- they may not quite hit it, but $40 billion in capex that's meta. and microsoft's above that alphabet the numbers on capex are mind-boggling, not to mention the revenue numbers and everything else associated with these companies, which is one reason why you do have to or you can't completely dismiss the threat from regulation, from those who would say these platforms are too large, too powerful, and need to be broken up, even though the law may not be behind those efforts. >> the reason they're spending so much is because the competition is so fierce >> they are, and that's why they need the nvidia cards. >> the other thing i keep coming back to is the days where the market freaked out on spending, on a capex cycle at amazon, that's over. >> no, we want them to spend because the leverage is great now that they've figured out which person they need we always figured, they can advertise, like, 50% of the people who will take an action we just got to figure out what they wouldn't act on amazon, whatever they're acting on is working, and they've laid

off the people who aren't. i was saying, would it matter if i had a billion dollar idea for you guys >> guys, before -- >> i wasted his time it's like i'm conscious. i don't want to take a billion dollars of your time i'll hang up after two minutes >> guys, before we talk to mike wirth from chevron, getting to charter, a company that i have followed through the years >> how they doing? >> not well. this quarter was not what analysts, at least, and investors had anticipated for charter, one of the larger cable companies, if you want to call it that, in the company, also becoming one of the bigger wireless providers getting crushed. also having an impact on our parent company's stock, which was up lately after earnings but down sharply as well >> why are we -- we're not in their business we're -- >> we are in their business. let me give you the why. they lost 61,000 broadband subscribers from the quarter that was not anticipated analysts had somewhere around a 10,000-loss number sort of pencilled in there

they did add overall 546,000 mobile subs. that was good. they also continue to lose on video. it was another 46,000, i think, was the number on video subs. and you know -- sorry. it goes on from there. that's not unexpected. sorry. 257,000 was the loss of video subs but it's the broadband number, guys, that is giving investors some hesitation this morning >> what's the end game for them? >> there's no end game they're spending a lot on capex. they're not changing their capex plans. they're talking about inflationary pressures and what they have been able to pass through. this is from the call in terms of the best of their ability the cfo talking about that in terms of pricing they want to -- you know, doesn't mean they're not willing to pass through increases, but there's a balance and an environment where investing a lot into expansion and making sure they maintain ebitda growth, that's the cfo there's the ceo, chris winfrey,

but again, not well received down 12%, having an impact on comcast as well. and of course, as we know, the video sub numbers just keep declining pretty dramatically, although less than had been anticipated, but overall, cutting continues apace. >> wow you know, what a bad business. i don't know those are bad numbers, david >> it's a free cash flow business it's not a topline growth business, that's for sure. >> down 11%. worse than commercial real estate companies, which is saying something what's the number one performing stock in the s&p this year >> this year number one performing stock in the s&p? it's nothat's another one. i mean, sometimes, you guys, i know that if you're interested in stocks, it's just worth it at times to go spend 40 minutes,

you know, just go listen to the ceo. listen for 15. listen to jassy or zuckerberg, listen to tim cook, it's just delightful, because these are successful, great american companies. you'll feel very proud of your country when you listen to these people >> you have to give them credit, jim, for digging out of a hole that, what, a year and a half ago, serious doubts. >> oh my all right. we got to go to -- you know, well, one of my absolute favorites in the industry of oil and gas, and david, you know what's interesting, david spent some time down at exxon, a competitor to chevron, and their shares are rising after the oil giant posted fourth quarter results, raised its dividend wasn't that long ago i read a piece and called mike wirth skand said, there's an analyst that says you have to cut. doesn't seem right hey, mike. you make a lot more money than people on wall street thought. how's that possible? >> jim, it's good to see you 2023 was really a year of

records for us we had record global oil and gas production, over 3.1 million barrels a day. we had record production here in the u.s. in the fourth quarter, we had record production in the permian of over 860,000 barrels a day on our way to a million barrels a day. in 2025. and we returned more than $26 billion to shareholders through our dividend and buyback. almost 10% of our market capitalization was returned to shareholders last year and as you said, earlier this week, we raised our dividend per share 8%, which is the 37th consecutive year that our annual dividend payout has increased. >> so, you still want to do a giant deal, even though i felt that after reading this quarter, that chevron's great on its own. why is it -- what's necessary? why do a deal? >> well, we had a great portfolio on our own >> i know. >> and we can -- we can continue to create value and deliver performance, but this is a

resource acquisition business. it's a depletion business as we produce our resources, and we're always looking to strengthen our portfolio. this is a long-term play it's a company that has a very strong set of complementary assets to ours, and it underpins our growth in free cash flow not only through the balance of this decade but well into the next, which is important when you've got a track record of organic investment and shareholder distributions as i just mentioned. >> well, the reason i bring it up is because the ftc has decided to probe the occidental crown rock merger, and i thought that was a little thing companies are doing and shouldn't even hit the radar at the feetstc if they don't like this deal, are you prepared to fight for it >> we don't think there's any real substantive anti-competitive dimensions on our deal we do have a second request. we've been working with the ftc. it's a very broad request, and

so we're producing documents and working with them to be sure that we're delivering what they're looking for, so that does take some time. we still anticipate closing around the middle of the year, and we'll work with the ftc to get through the process for a deal that really poses no issues >> mike, you're a person who really knows more than just the nuts and bolts of oil. can you speak to what's happening in the red sea also, what would have happened in another era, say, 1973, when there was a war in the middle east and what was done to our country because our country resupplied the country of israel >> yeah, the situation in the middle east is volatile and risky right now. certainly, we've seen an impact on shipping, container shipping as well as in our industry interestingly, prices have not really reflected the risk that you might have seen in times past part of that is because while

the middle east remains a very important source of supply, there are other sources that are an important supply, including the united states of america, which is the largest producer of oil in the world, larger than saudi arabia or russia last year, over 13 million barrels a day, and it will likely grow again this year, and markets now have more diverse sources of supply. the u.s. has more diverse sources of supply, and so we see the importance of reliability in energy, and that, i think, is one of the reasons why markets have been a little calmer than you might have expected, given these events >> hey, mike, it's david just want to come back to the hess deal for a moment exxonmobil will be your partner in guyana, which is a very important part of the overall deal, certainly an asset for hess darren woods was a guest on "squawk box. i'm curious to get your take as well

these bellicose statements from venezuela, some concern there in terms of would they ever try to move on guyana, a country of a million people, and take control of the oil what are your thoughts on that and/or the risk it -- >> we partner with exxon in many places around the world. also, there's a chinese company that is a partner in the guyana project. so, the country is actually important to both the united states and china as you've got large investors -- >> well, we lost him >> we lost him oh go ahead all right. >> we're listening i can't hear mike wirth. >> all right, well, that's -- mike, i think, is coming from a golf tournament, where i think his wife is going to be invited. tremendous golfer. david, one thing, when you mentioned the guyana situation,

is that the type of the thing that this ftc may say, listen, i don't know if i -- this is not right. these two companies could be colluding? >> i don't think so. i mean, you heard mr. wirth discuss the second request from the ftc. my understanding, it was fairly volum voluminous, but he said they're on track >> because you spend a lot of time with darren at exxon, any qualitative comparisons about what the two companies are up to >> i would leave it to you to make those comparisons >> i think they're both excellent, and i think what's really incredible, david, is both companies were thought a year ago, particularly chevron, which has had several years of underperformance, not able to grow the way they used to, to replenish the way they used to, and when you hear the numbers that mike wirth said about the permian, if everybody produces that much, particularly standard oil, exxon, they might do 15 billion barrels a day. >> we're already at 13.3 >> we could do 15 and then the

price of oil is -- then you're starting to wonder >> they do return more, these two companies, to shareholders, in the form of dividend and buybacks than they put into the ground at this point, is that correct? >> yes, they do. they're also trying to be stewards because they recognize their business isn't going to last forever there was a piece that mike was not that crazy about when i spoke to him recently, a cowen piece, downgrade to market perform, pause the performance on permian projects and m&a, which questioned whether they could pay the dividend as is, and i think mike's increase of the dividend may have made it so that this piece might have been -- this is more of an ill-advised piece. i'm not going to mention who wrote this david, can you read this what's the name again? >> the guy who screwed up on this >> jason >> meanwhile, jim, we talked about the ford going to top pick at morgan stanley. tesla, first death cross since may of '22 >> the fabled death cross? >> as regulators are now looking

or intensifying their probe into power steering losses, software recalled today >> you have cathy woods might look at that death cross and says, i got to turn that into a golden cross there are people who literally do try to get that stock up higher it's part of their m.o and you know, buy it and then it's a take and bid situation where you get the stock back, but i would say that the main reason why i'm concerned about this is that he -- when david interviewed musk, musk has a lot of big things he'd like to do, and i feel like that if you accelerated his space venture, and he could sell stock in that, then he might move over. spend more time there, get his full a.i. benefit. >> yeah. i think there are any number of risks related to musk, certainly. >> did you think the pay package was outrageous, given how much money he made for other people,

or do you think it's the opaqueness of whether his divorce lawyer was able to get a better deal. >> obviously, chancellor mccormick felt the process was deeply flawed, but i think many shareholders would not be complaining, because he delivered incredible results >> thank you, mike wirth mike wirth is the ceo of chevron. >> sorry we lost him there >> yeah. >> it was funny that we're still on let's check bonds. the ten-year, still refusing to push higher than 3.9% or so as it takes a look. >> that's incredible that's the story of the morning. not vision pro, not zuckerberg >> we're not done yet, by the way. umich and factory orders and durables in about ten minutes.

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all right. last block there we lost mike wirth's signal, but we got him back ceo of chevron let me just quickly come back to that question i was asking about, guy yanna, you were answering it, is there a concern an your part in terms of the vene venezuelan government and what it may or may not do with respect to hess which you're in the process of sfrequiring? >> the two companies met an there seems to be a diplomatic dialog that is under way right now. oftentimes these types of disputes, where there's natural resources involved, can become heated, but always they're resolved through discussions, negotiations and diplomacy and that appears to be, you know, under way with respect to

venezuela and guyana. >> our president put pause to longer term lng deals, wants to assess them. spike to a lot of people whom i would regard as being our allies in the business, whether it be south korea or some of the countries in western europe. they're all horrified and all concerned that they're going to have to become reliant on russia and their own security are we at times as a nation being a little too glib about the security of our allies versus how much po lution, lng plants might cause >> jim, energy policy should not be lil u.s. lng is important to support our allies and back out coal around the world, particularly in asia. the u.s. stepped in when russia proved to be an unreliable supplier and was there when our allies in europe needed that the u.s. has export capacity now that can supply many countries around the world, reduce

emissions, and provide reliable and affordable energy to power economies. one of the things that's really important on these types of investments is confidence and certainty and reliability over the long term. countries make long term investments in their energy value chains and it's very important they have a reliable supply these kinds of policy politics undermine the confidence that customers around the world should have in the united states >> well, i want to thank you, mike that's pretty succinct way of talking about what countries that have relied on us and if they rely on another force part of the old evil empire would be terrible team not a political guy, but you summarized it. congratulation on a great quarter. you put to rest those who are concerned about dividend by giving a big raise in the dividend well played. >> jim, as i mentioned we have a track record of 37 consecutive

years of dividend increases over the last five or six years, more than twice any of our peers, stronger than the s&p 500, and we're returning a lot of cash to shareholders $26 billion last year and paid down debt each year for the last three years and our balance sheet is rock solid with net debt we're built for a $50 world where we can cover in an environment like we see today. we've got plenty of capacity to continue to return cash to shareholders we've got a durable resilient set of assets and a very consistent approach to returning cash to shareholders. >> all right thank you, mike. great to have you on you know i was hoping for a good number because so many people i have who watch "mad money" are in the stock because they want that dividend and you delivered. thank you very much. >> god to see you. jim, look forward to seeing you tonight. we get an early spring

thank you, punxsutawney phil. >> i saw that. thank you, buddy i've got cardinal health this is a company so huge. the middlemen, they don't like me to say, make so much money and we'll talk about what value service they do and one of my favorite guys in the apparel business, tim boyle, columbia sportswear, we have to stay close to how the consumer is doing and their stuff is, you know, whether it be lululemon or gap stores we don't know. against that employment number. >> and the consumption estimates atlanta fed 4.2. we'll see where we get in the next few months. >> how about if they say we may cut, the analysts saying we should cut they should turn in their badge. look, what kind of badge do you get in this business congressional medal i'll tell you that much. >> "mad money" 6:00 p.m. eastern time dow down 100 b muteta up a full 20%. we're back in a minute helps secure tomorrow.

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finals that will replace mid-month reads. 78.8 becomes 9 -- 79.9 we look at current conditions it moved from its mid read from 83.3 down. this is unusual. that's a pretty big move 81.9 that would end up being the weakest since the end of last year when it was 73.3. 83.3 was a big jump. also before the change of that mid month read, the best since july of '21. expectations moved from 77.9 -- 76.0 to 77.1 77.1 is the best going back to july of '21. one-year inflation the mid month read 2.9, remains at 2.9 finally 5 to 10-year inflation last look on mid month read it was 2.6. now it moves to -- excuse me,

2.8, moves to 2.9. so 2.8 to 2.9. 2.9 is the highest level of inflation there since the end of last year in november of '23 when it was 3.2. factory orders, these are fresh numbers. these are december numbers we're expecting up 0.2 it arrives up 0.2, strip out transportation it doubles up 0.4. we could see the aircraft orders most likely were a bit of a drag on this number and if we look at durable goods these once again are final reads which means the mid-month read gets tossed out. mid-month read unchanged and remains at unchanged, ex-transportation, initial read 0.6 moves to 0.5 capital good orders nondefense ex-aircraft, a proxy for capital business spending, last look, mid-month up 0.3 it is now up 0.2 so we lose a bit there

interest rates, well, interest rates have had a lot of movement before the number. 10-year note yield, for example, was down 12 on the week. excuse me down 26 on the week. now only down half of that sara, back to you. >> yeah. jumping yields, jumping dollar thank you. rick santelli. good friday morn welcome to another hour of "squawk on the street. i'm sara eisen with carl quintanilla and david faber live from post nine of the new york stock exchange take a look at the stock market right now. the s&p is higher by 0.3%. don't let it fool you. a lot of it is the mega caps communication services, best performing sector, why, meta is up 20% most of the other stocks in that group are lower. consumer discretionary up 1.3% why? amazon up more than 7% these are major earnings movers from the biggest stocks in the market the dow is lower it's being dragged by names hme depot because yields are jumping. treasuries mostly in react slun to the strong jobs report we are

seeing the stock in yields, 10-year above 4% 30 minutes into the trading session, movers that we are watching as i said, mega cap tech front and center, meta, amazon, apple making moves on the latest earnings what to do with these stocks straight ahead cigna shares are rising. the health care services company beating earnings estimates, raising its dividend by 14%. two consumer names to watch. deckers outdoors rallying after posting record revenue and skechers is plunging after sales mi missed estimates guidance falling short of expectation. david keeps buying hokas and the stock goes up. he's very cool with his sneakers >> i'm not cool. i like my hokas. we didn't talk about the jobs number because of the mega cap earnings we were dealing with. i have to get your take on this number beyond consensus, what it means for the fed whether powell

may have had a sense for this. >> i don't know if he gets an up close look but his view to push out march and say we need to see greater confidence of lower inflation was totally vindicated by this blowout jobs report. i mean, let's go through the details. 353,000 jobs added in the month. that was way above the consensus, looking for under 200,000. a few other points of strength two upward revisions for the prior two months, november and december and broke a string of downward revisions here's a breakdown of where the jobs were. it comes from services sector. if you look at the services sector, 289,000 jobs added government added 36,000. goods added 28,000 manufacturing in that goods section was an add people were looking for that we saw some losses in mining and logging, but it's really the part of the economy that is humming and that is services everything in services health care, ambulatory services, professional and

business services. education services all very healthy job gains then the cherry on top is wages. certainly for the economy and for the administration, but not so much for the fed. average hourly earnings rising 0.6% in the month. highest since march 2022 and so it brings the year over year pace to 4.5%. >> wow. >> the meaning of this, david, and why i think bonds are selling off sharply as a result of it and the dollar is rising and stocks are selling off is, there's nothing here that screams we need to be cutting interest rates if anything it's that we needed to see more evidence that this hot -- this is not a goldilocks report it's not like not too hot or cold. >> yeah. >> they need to make sure the trend of wages isn't turning back higher before they start cutting interest rates and might have to reverse. >> although the cut in the hours worked takes some of the sting out of it. that's probably why we can't get

a 4 year on the 10-year. >> one downside surprise it was that and participation a little bit. >> we seen that in dallas fed workweek not a surprise but interesting to see it ratified in this print. >> december wages were pushed a little bit higher as well, 4.3%. so again, stronger and somewhat surprising given the evidence that we have seen lately from the employment cost index to the pce numbers. i would say, though, it reinforces a strong jomtss report we got in the week be 9 million job openings, another strong number. it supports the idea of patience from the fed right. they should be in no rush to lower rates. they have to make sure that the wage growth is robust, but is not leading to this wage price spiral where they sort of lose control of inflation again or, you know, at least get inflation popping back up again. chris rubski says it's the strangest business cycle we've seen because it is surprising at

this stage after so many rate hikes to get a gdp estimate of more than 4% and this job growth. >> revision up as well for the last couple months too. >> the last two months that was good. >> yeah. >> bank of america put out a note, michael gapen, saying that reaction function of the fed is a little ambiguous and they have a communication problem, but i think it's because we're getting these kind of numbers that are not necessary all, first of all, telling the same story, that story was the labor market was cooling. this is not a labor market cooling kind of report fed is going to have to be a little ambiguous when it comes to the timing and how they're thinking about proceeding with a rate cut depending on the data we get we still get another jobs report before the march meeting. >> okay. let's move on to the big earnings and none bigger than meta in terms of the reception it is being met with by investors this morning the shares are up some 20% amazon is higher as well on an

earnings beat. apple under some pressure. that company did return to top line sales growth, 2%, though, and china continues to be a real concern there. sales in that country fell 13% let's try to get to all of it with rosenblat analyst barton crockett joins us now. barton, first start with meta. the revenue acceleration at scale is what a lot of longs were talking to me about this morning. do you share their amazement >> very much so. look, i think that we've all been looking with really kind of amazement at what nvidia has been doing, selling, you know, artificial intelligence chips. meta has been buying a ton of those, and what they put up in this report suggests they're putting that equipment to productive use their revenue growth, you know, i think it was up 22% in the quarter. the guidance would suggest it could accelerate in the march

quarter even though the compares are tougher. these guys going full bore on artificial intelligence. integrating that in everything they do and seems to be paying off for them it's the first proof point that this whole revolution that we've bob pisani talking about can work. >> yeah. ai seems to be positively impacting the return on investment for advertisers will that just continue to accelerate as well >> as best we can tell this is a brave new world. i mean, this is, you know, an environment that we haven't seen before these guys are leaning into it and making it work it's interesting it's meta and not google, right. google is all about the technology, but meta is really kind of using it better and part of that is their business model. yeah, i mean, it seems that this can continue, and it seems like this is a rocket that's worth

riding so we stick with our buy rating and raised our price target and think you can own meta here. >> yeah. some people talk to me about a $27 share number for 2025. a, do you think that's a possibility? and let's get to multiple. what is a multiple here for a company whose stock has always traded at a lower multiple than might have been expected given its growth rate? >> yeah. look, i mean, i would have to look at my cell file to give you my number for a couple years from now we think that the eps growth is going to be impressive and supportive of the stock and there's a rerating argument. these guys are returning capital to shareholders. now they're a dividend payer we think it all stitches together and we would argue you can get the stock up to $520 in the next year, and we think that's great place to be sitting right now. >> working it ways quickly

towards that number already. barton, thanks for the update on meta, which we will continue to watch with apple and amazon. by the way, quick programming note, tune in to "halftime" with scott wapner altimeter's brad gerstner will talk about meta stock. gerstner was the early voice in saying get efficient, wrote the letter to zuckerberg an update from brad. you can imagine he might be happy with his position. >> as we go to break a road map for the rest of the hour fears about the regional banks creeping back into the market. another downgrade for nycb. >> ai lobbying exploding as businesses face the prospect of regulation and not just tech throwing money around in d.c. >> a shakeup in the world of formula 1. lewis hamilton leaving mercedes to join ferrari. toto wolff joins us live to discuss the fallout and his plans from here. big show still ahead on this jobs day "squawk on the street" will be right back with the dow down 143

and the s&p and nasdaq higher.

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couple days ago we got results from new york community bancorp. they were not good kicked off fresh concerns for the overall regional bank sector you can see that stock perhaps stabilizing a bit, but down almost 45% for the week. let's get over to leslie picker. leslie, there's always a concern when you see something like this

it could spread. what are you hearing >> yeah. that's exactly the concern, and the pain continues actually for the overall kre this morning after the toughest week for regional banks since the turmoil that we saw last spring. the selloff, as you mentioned, driven by reignited concerns about commercial real estate exposure, specifically after those fourth quarter earnings from new york community bank corp as well as one oversized a chinese mid sized bank alzura showed losses tied to u.s. properties nycb getting a relief rally today up more than 3% currently after facing a slew of downgrades this week the latest from deutsche bank to hold from buy. this morning due to overall uncertainty around the firm's credit quality and the firm experiencing growing pains as deutsch called it over its acquisition of signature bank after that bank collapsed mast last march as a result, nycb's assets grew above $100 billion putting it in a more regulated tier.

management had to slash the dividend to build capital. wedbush, and its downgrade said loma tourties could pressure borrowers unable to come up with more cash refinancing at higher rates. rates would remain high for the medium term there was pressure on the regional balance sheet dynamic. we got the data from wedbush showing the banks in their coverage university with the highest exposure to cre with average earnings assets, nycb comes in at about fifth on the list at 50%. top of the list with home street bank with 53%, valley national 5 a%, first foundation 50% even as several analysts have noted that many of nycb issues are somewhat idiosyncratic there is as you mentioned, david, the overall concern that cre exposure could once again rear its glig head given what we saw

transpire last march. >> leslie thanks. still to come today, payrolls see the biggest gains since january of last year we'll check in with goldman's chief economist jan hatzius to talk about what it may mean for rates an the fed when we're back in a minute. awkward question. is there going to be anything... leftover? oh, absolutely. [inner monologue] my kids don't know what they want. you know who knows what she wants? me! with empower, we get all of our financial questions answered. so you don't have to worry. empower what's next. (ella) fashion moves fast.

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as more organizations build it into their business processes, there's an expectation that they really have a strong grasp of design, but more importantly, continuous monitoring. right. that's going to drive trust and credibility and give consumers confidence. >> what do leaders need to consider when they're developing these ai strategies? >> you know, first really think about what's a business purpose of the ai. how is it being designed, developed? is the data reliable how is it protected. all of this to really drive that confidence and credibility that consumers and regulators are going to expect. >> you talk about monitoring is that from a compliance perspective? >> it starts that way, but the risk landscape is changing drastically so when you think about the controls we've put in risk management to safeguard and protect these assets those can be capitalized from an operational perspective to help companies drive strategy and top line growth. >> thanks so much for sharing your expertise. >> thank you

january's jobs numbers non-farm up 353. powell warned this week that march cut was unlikely does this give the fed more reason to hold rates here? our next guest expects five cuts this year. goldman sachs chief economist jan hatzius is with us at post nine great to have you back. >> great to be here. >> two things, market is sort of looking at maybe a somewhat muted reaction relative to the print, and the word wonky is getting tossed around a lot. is that fair >> i think the muted reaction relative to the print makes

sense. i mean 353 on the surface is a blockbuster number, but january is a very difficult month to seasonally adjust. there are seasonal layoffs, unadjusted payrolls in january are down a ton, so when you have relatively low layoffs, and we know that from the jobless claims numbers and a bunch of other indicators, then you can get some very strong numbers i would say a year ago, you know, we had a very strong january jobs report as well. i think partly for similar reasons. now it is a very strong labor market the labor market is doing great. the unemployment rate is 3.7%. it's been in that range for a long time. but i don't think it's quite as strong as the payroll number suggests. >> does hours worked offset some of the strength in wages >> well, hours worked i think in addition to, you know, maybe whatever else is going on with hours worked, also saw a negative impact from the weather, from the snowstorms

during the week. that's another distortion that cuts in the other direction, but it then in turn just to make it even more complicated, probably boosted average hourly earnings growth because earnings are calculated as the wage bill divided by hours worked and if hours worked are sort of low, that's going to give you a big number but it is all very wonky, yes, coming back to your second question. >> still, with back-to-back jobs numbers above 300,000 and wage growth ticking up to 4.5%, year over year, doesn't that justify the fed's patience >> it certainly reinforces what chair powell said in the wednesday press conference that march is, you know, unlikely, and, you know, prior to this report, markets were still assigning reasonably high probability sort of 30 to 40% to a march cut, but that has come down and i think that's very

important. >> you changed your forecast when you heard powell kind of rule out march >> yes on the comment that he was going to -- that march was unlikely. >> do you think it would be -- do you think it's a mistake march is unpolitical >> -- unlikely >> no. the economy is doing well. the reason for cuts is really that inflation is moving back to the target, probably going to be quite close to the target, by the time the first cut occurs, if that's say in may we won't be that far away from 2%, even on a year-on-year number or year-on-year basis i think it is fine to wait a little bit longer. >> you think inflation still goes down to 2%, even with very strong job market, and decent wage growth? >> i do, yes the wage numbers, i do think there's decel flation wages and i expect we're going to find that today's number was an

outlier, maybe an outlier driven by some maybe are more spurious weather related factors. i would put more weight on the employment cost index which showed a deceleration, admittedly for the fourth quarter not the first quarter. >> three quick questions is there upside bias to your gdp 2.8? >> i think yes probably if you just look at what's happened to the gdp numbers recently, that could drift higher i would make one caveat which is that gross domestic income, which is another way of getting at gdp, has been running quite a bit weaker recently. i would also keep that in mind that gdp has been very, very strong the last several quarters but maybe upward isn't growing as quickly as that. >> is the productivity number the start of something new and real >> same i would say same answer to that question i think the productivity numbers are based on the gdp number so

when gdp is very strong, productivity is going to be strong again, the income number suggests maybe that's not quite as strong. i expect a pick-up in productivity growth from ai as we go into the later part of this decade, early next decade it's too early i think at this point to see that in the productivity numbers. >> echoing what powell said. commercial bank stress, how serious do you think it is >> i would say based on what i've seen so far, it looks a little bit more limited or maybe isolated because i do think that, of course, the commercial real estate market is soft, especially the office, but i'm most worried about those kinds of financial imbalances after a big increase in interest rates a year ago back to back 75 point rate increases, made a lot of sense to watch this closely and

have concerns. now, rates have been kind of stable to lower, so it's less of a shock in my view but, obviously, this is always something you want to constantly reevaluate. >> jan, good to have you covered a lot of ground as you said, complicated topic of the day. thanks. >> great to be on. >> still to come, all the big tech headlines you may have missed that have results of meta shares surging 20% more on rising trends gaining a whole lot of lobbying dollars. ai, that trend we'll break that down for you next don'gonyert awhe.

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welcome back i'm silvana henao with your news updates. the house gop subpoenaed fulton county district attorney fani willis who charged donald trump in election interface case in her state. they're demanding documents from her office following allegations

willis fired a whistleblower who tried to stop a top campaign aide from misusing federal funds in her two-year probe into the former president. in new york a verdict in trump's civil fraud trial may not come until mid-february. about a month after closing arguments wrapped. the new york attorney general is seeking a $370 million fine against trump and to ban him from the new york real estate industry trump has called the lawsuit a partisan witch hunt. and the groundhog's decision is in. we are due for an early spring this year. punxsutawney phil did not see his shadow just after sunrise this morning it's more common for the famous groundhog to predict more winter last year a federal agency looked at his record and found he's right about 40% of the time 40%. we'll see. >> finally, we will take it. >> we'll take it. >> yeah. thanks silvana henao. let's check in on mega cap

tech an hour into trading. meta shares up 20% just surge after stunning investors with its first ever dividend, that $50 billion share buyback. amazon popping thanks to higher profit, holiday sale surge and apple ending the streak of revenue declines but the china miss is weighing on the name what comes next for the names and the rest of the magnificent seven or super six or fab five mike santoli is here to break things down. it's centering around margins. >> opening up the taps and letting the revenue fall to the bottom line. by the way, if you needed a lesson into how nobody has an edge on these stocks, trillion dollar company, everyone liked it, it's up 20% today. that's how good it could be because of the management action that's one of the things about the magnificent seven is that you can have a view on it and know the broader trends, but you can't necessarily stay a step ahead reliably everybody else on the street by figuring out

quarter by quarter every three month stretch. what i think is positive in general about this earnings season is the differentiation. you don't or i don't want to see the magnificent seven or whatever rubric we're using move as just one big blob of mega cap growth and that is not happening. you have super positive from meta, amazon, microsoft, confirms very aggressive positive expectations, and then tesla, apple, alphabet, a little bit of disappointment. nvidia different fiscal year we'll figure that out but probably fine. that's a good thing i think if they're going company by company. what's interesting to me is that the capex plans are treated differently depending on whether investors trust you. now whether investors feel like you're getting pay back on it. if it's alphabet and feels like it's defensive, like you're protecting, you know, something that you might lose in this new world of ai, and also it's a company that isn't always given credit for capital discipline and for insisting on getting

paid back for their investments you get a little bit of luke warm response and alphabet trades at a modest multiple and that's all okay. final point is, this got us positive for earnings growth year over year for the season and that had to happen and you had to rely on the big ones with all this dollar left to get that job done. >> i noticed the capex was up, meta, alphabet, amazon. >> and snoofts ai, right. >> exactly. >> that's why nvidia trades off these numbers because that's where it's going but again, like the investor response is different, right it's like it's good news if amazon is going to have to build up because that's their mode always. >> they have operating leverage they're showing right now and the investments they made seem to be paying off in margin improvement. >> and the faster growing parts of the business like advertising which has almost no incremental cost associated with it, feels like gravy even though amazon it could be more profitable still, but showing enough operating cash flow growth it keeps the story

moving. >> to your point, alphabet in particular there are more question marks not just from the quarter but the bigger picture as well given meta and interesting to see the stock decline even today. >> right. >> and my reflex response to meta's initiation of a dividend along with the very heavy share repurchase plan is, they felt it when the street said you guys are wasters of money here, when they first let -- their metaers have investment plans they got relit rereligion on that there's enough to go around as apple showed us, as microsoft has showed us, you don't have to sacrifice being a growth company when also -- you have that little gesture of saying we're going to share it with shareholders alphabet 20 years into it lives as a public company, no dividend. >> i did hear this morning long onlies can buy a stock that is a

dividend is there a new universe that's accessible that may move the needle here? >> potentially i don't think it's as decisive as maybe it used to be at one point. kind of opening up the pool of investors. there used to be a line the dow would never put you in if you didn't pay a dividend. i don't think anybody should care about being in the dow, but maybe that was an argument at some point it doesn't hurt or exclude anybody. the days of microsoft initiating a duividend and everyone saying it's just a cash cow business we've gone beyond that. >> to the degree names don't make the cut do they go staples or whatever else or to a lilly that gets added to the name or group. >> it more or less gets sprinkled around i don't think about it as a discreet stream of dollars because, you know, it's happening at a lower price when the price goes down you have the sellers getting a lower

price and people -- so i do think it probably you're looking for the next one for tesla for sure i think it's really been nvidia nvidia has status tech has as open ended growth, saving the world, volumes of options every day because people are seizing on it. tesla absolutely has surrendered that. >> nvidia crossing the $1.6 trillion market value level. >> yeah. >> amazing. >> i do think this is a good mike versus sara day does the market want better growth or immediate cuts >> in 23 minutes we'll have that discussion. >> we'll talk about that. >> i think they want cuts today. thank you. tech names betting big on the continued rise of artificial intelligence as we were talking about and lobbying dollars are surging along with it. let's welcome to "squawk on the street" our own meghan kasela with the story from washington good to see you. >> thanks, sara. yep, the number of companies that are trying to influence ai

regulation hit a record in 2023. we had open secrets crunch the numbers for cnbc and we found that more than 450 organizations registered just in 2023 to lobby the government specifically on ai now that was a 185% jump from over the year before there's a big range of companies at play here it's not just the tech companies which i think you would expect but retailers, pharma companies, unions, university, you name it. a lot of the biggest names in this space just launched their ai lobbying efforts for the first time in 2023 that's amd, nvidia, openai, qualcomm, cisco, just getting in the game all as business is trying to shape president biden's new ai regulations and today is the deadline for public comment on guidelines that will shape ai safety and security. we've been digging through the government filings and found google is telling cnbc they will urge u.s. policymakers to find a global consensus on standards that says ai is a cross-border technology we need global consensus here.

salesforce is echoing other public comments saying they need a, quote, one size fits all approach or a one size fits all approach won't work, that regulation needs to take into account the complexity of ai, but they're urging the government to look at as they make these regulations and we'll keep tracking the comments as they come in today there's going to be no shortage of opinions and no shortage of money to influence ai policy guys. >> meghan, thank you very much welcome again. cnbc in our d.c. bureau. still ahead the formula 1 news that shocked the industry, lewis hamilton leaves mercedes for ferrari. billionaire motor sport executive of pret toe nas f1 team toto wolff joins us to discuss after this break don't miss it.

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is. some pretty big news out of formula 1 yesterday. mercedes long-time driver lewis hamilton announcing he will join

team ferrari in 2025 in a multiyear deal, shaking up mercedes team. toto wolff, mercedes amg petronas f1 team principal and ceo joins us first of all, toto, thank you for joining us and taking the time good to see you. >> good to see you, sara, thank you. >> this was, obviously, huge news and came as a pretty big shock a lot of people. what happened? >> so last year when we signed a new deal, we wanted to keep it short, see what future would hold and that was an agreement we had with lewis. we knew this would eventually end, maybe two years down the line we knew there was an option for a one-year deal. in so far the timing was a bit of a surprise but the decision in itself didn't come out of nowhere. >> timing you mentioned was a surprise i wonder what it's going to mean for the current season

lewis will be driving for you. is it awkward for the team >> so, i think eventually a racing driver's career ends and for lewis he wanted change and try something new, but the team has managed a situation like this before. we've had a change in driver lineups and we have a fuel year to go and going to give it everything now, of course, you know on one side we want to have success with our drivers, but we need to look at 2026 and 2025 and that's going to play in our mind. >> toto, you teach a harvard business school class. there have been case studies written about mercedes you're ceo, a part owner what steps do you take now to manage the organization? >> i think it's important to remember that we -- we're the mercedes formula 1 team. we've had a sensational spell that has not been done before

with lewis of more than ten years. we have won more championships and races than anybody else, and now it's about to identify what's going to be the next step beyond 2024. what is the dream lineup that we can put together in order tore continue the success into a new generation of drivers and the next ten years to come as part owner of the team that is my perspective. i want to look back in five or ten years and say things came to a natural end, and going forward, we took the right decisions and the team eventually this is all what made us we have to be in a position to win races and championships and that's 100% what we are for. >> you do have tremendous brand partners, marriott among them. something i focused on significantly in our documentary on the business of formula 1, the sponsors and partners. what are you saying to them about what the future of mercedes looks like without last month -- lewis hamilton.

>> lewis hamilton mercedes is the same story because we've been together for 12 years the team we continue to be the same shareholders i continue to run it we have a very exciting driver going toe to toe with lewis last year you have to adapt. our sport is ability adaptability like any other business and the lessons i tried to pass over when talking about high performance and management under pressure. >> do you think this will impact the business of the mercedes team, whether it's sponsors, merch sales, anything else lewi lewis was a juggernaut. >> absolutely. lewis is much more than a racing driver he's a global phenomenon at first time when you look at it, you're going to miss a big part, but the formula 1 team, like mercedes, we immediate to have our own identify and we

always will have in the future and we hope to be part of the career of many young drivers and successful drivers going forward. and we will look back with a warm heart, of how fantastic that journey was, and how we've grown together. >> are you planning right now who will be in the seat in 2025? >> yeah. as you can imagine, we've been looking already about the option there is -- we like the opportunities and maybe we're going to be bold as well. >> some people are wondering if carlos, lewis' is taking his seat on -- from the ferrari team could end up in mercedes or an opportunity to bring in a younger, energized fan base and driver >> yeah. i think it's a full spectrum we have as you can imagine, quite a lot of phone calls and whatsapps and we're going to take our time.

i think the spectrum is from the very young talent, which could be the future for a long term, all the way to the other spectrum, lots of still performance and knowledge, so i'm not sure where this is going to end but the next few months will be interesting in evaluating those options >> some speculation this could be a reflex of the 2024 car. do you think george and lewis this year will be able to compete with red bull and max? >> it's clear when you have stable regulations, it's always a difficult thing to catch up with a multiverse climb. they have been in a league of their own and pretty much us and -- we finished second flooerts -- second last year in the championship we have to find more performance and this is what we're going to do with george and lewis in the car, this is the single aim i'm

having at the moment when looking at the short and medium term. >> i've been watching the f1 tracking stock run by liberty media and it's up in the past few days and wonder, i mean, this is sort of undoubtedly good for the business of formula 1 to have this kind of drama and surprise, would you agree? >> yeah. f1 is just much more than the on track action in the sport. we are a 12 months reality show basically entertainment for the sport. i had a chat yesterday with rick from liberty it's a fantastic content here in the offseason to provide so much drama and change, and formula 1 is always good for surprises it's the essence of what we do and on track and off track. >> yeah. greg has to be happy loving the content toto, thank you very much. >> he is

thank you. >> keep us posted. toto wolff head of the mercedes team in f1 carl >> still to come this morning on money movers the white house first reaction to the jobs number council jared bernstein will break down those numbers when break down those numbers when we're back in a minute billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart!

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plenty of earnings movers to get to this morning, including that bottom stock there, not our parent company, comcast, which is being wrapped up in the downdraft as a result of charter's numbers, which were below estimates. particularly when it came to losses of broadband customers. of course, that is the main service provided by the company. they lost 61,000 broadband subscribers in the fourth quarter. analysts who followed the company estimated a loss of perhaps 10,000 they did add 460,000 wireless subscribers, which was a bit more than anticipated. for some time we asked about the growth of wireless as a meaningful business for both charter and the spectrum brand and our parent company, comcast, as well. and video subs continue there, decline. the broadband number in particular that is really

worrying investors having that spillover effect on comcast shares, which had had a pretty good share to date by this morning. now we're actually below the performance of the s&p >> so many earnings movers to get to another one to get to is clorox, that's a winner. clorox had this cyberattack last year, which really disrupted the company, both operationally and financially. the story of clorox's quarter is they're coming back and recovering the inventories are getting repaired, the distribution is getting repaired, they're able to fill up shelves at retailers and they provided an outlook for 2024 that was better than analyst forecasts, and a lot of them, including barclays, says looks conservative sales decline expected to be down low single digits, which is an improvement from what clorox was previously saying. as far as what it says about the consumer, because they sell all sorts of basics from the wipes to salad dressings, which is

what the ceo said on the call last night >> looking ahead, we expect the operating environment to remain challenging as consumers remain under pressure and their value-seeking behaviors continue nevertheless, we remain committed to growing the top line and rebuilding margins and expect volume to play a stronger role in our top line performance as we lap pricing. >> stocks doing well operationally, an improvement. i note the caution about the value-seeking consumers because we hear that from a number of consumer staples companies, discretionary. not bad. does make you question a jobs report when you bet 360,000 jobs added in a month, above 300,000 a second month in a row, better wage numbers there's some mixed signals going on in the economy and the recovery, which makes it hard to forecast where we are in the cycle. >> and throw in the jobs number, as you point out as well. >> jobs and wages, 4.5%.

tempered by the fewer hours worked and as goldman sachs, january is always funky with the weather and how many people participate in the survey. so we'll look for revisions there, but it was strong. >> worth ending on the three big names that reported earnings after the bell last night. meta certainly by far the outperformer we've talked about it a number of times this morning. revenue acceleration, in other words, the growth rate has increased in terms of the revenue number that has excited many. a.i. seems to be positively impacting the company or return on investment for its advertisers. and, you know, it's just seen as a multigrowth story in a number of different areas by investors. not to mention the positive impact that the spending on a.i. seems to be having on nvidia we mentioned earlier, mike santoli joined us, $1.6

trillion, shares up another 3.5% as well. and you do have apple shares paring losses, down 7% amazon operating leverage there as well. and does seem to be certainly striking some chords of optimism amongst the investor base there, given the belief those investments they made previously are going to be a tailwind to march. don't miss the ceo of crowdstrike next hour along with what the white house's reaction is to that very strong jobs number live market coverage continues after this (ella) fashion moves fast. setting trends is our business. we need to scale with customer demand... in real time. (jen) so we partner with verizon. their solution for us? a private 5g network. (ella) we now get more control of production, efficiencies, and greater agility. (marquis) with a custom private 5g network. our customers get what they want, when they want it.

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good friday morning. welcome to "money movers." i'm carl quintanilla with sara eisen live on the floor of the new york stock exchange. today the white house's first response to the blowout jobs report jared bernstein will join us from washington. meta surging, passing nvidia as the best performing stock in the s&p and nasdaq 100 this year we'll take a look at the future of big tech dividends. the fbi warnin