>> great, nadia, thank you senior u.s. equity strategist at ubs, good to have you on this morning. final check on the markets, which have been a little bit of a melt-up. mini-melt-up in the three hours that we have been on now, up about 67 points now. 84 on the nasdaq we'll definitely have a name tomorrow make sure you -- for the new sports network join us tomorrow "squawk on the street" is next ♪ good wednesday 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 futures are trying to find their legs as corporate earnings come in with some examples of solid guidance, and new york community bank bounces premarket road map begins with upending tv sports espn, fox, and warner bros.

discovery set to launch a joint sports streaming service plus snap shares are tumbling the company delivered weak guidance on continued headwinds it cites from the israel-hamas war. four chairs appear to be popping ahead of the open. the auto maker rethinking its ev plans, boosting its dividend and offering better than expected outlook. let's begin with espn, fox, and warner bros. discovery teaming up to launch that streaming platform david was here working late last night, and i know you got more this morning >> it's an important moment in terms of the cable ecosystem or the disappearance of the cable ecosystem in many ways and a big step forward, some would think, in terms of at least what is this complex world that we're in here in terms of trying to get ahold of sports programming as a viewer and figuring out where it may be the ultimate goal here for these companies is to create an app

that -- create an app that allows, for example, a younger gentleman who cares about sports to access it without having to pay for the entire cable bundle as we all know, of course, that is going away very quickly show you that chart that came up there briefly. a bit more to explain that but overall, it brings together these three providers, and all of their sports programming, which will cover a wide variety of sports, not quite all of it, but much of it they will have a third ownership interest each, but the revenues will flow through in a different mix, because espn, for example, with higher fees, paying more to the leagues,will get a higher percentage of the revenues, at least at the outset, it would appear and so that's how it's going to work, so the overall entity itself, how much value will accrete to it over time is

unclear. perhaps you get naming rights. perhaps there's gaming partners. there will be some value for this yet to be named, to be launched in the fall entity. i am told pricing-wise, it will be above 40 but not that much above $40 a month, but that does give you a sense as to what we're talking about here it's not an insignificant compilation of a lot of sports rights the idea is to get that one who would never subscribe to the bundle and/or who falls off the bundle but still wants access to sports, although if you care about your regional sports networks, for example, and your local teams, that becomes still an issue to some extent. they are going to have what i am told is a fairly high-profile executive. i believe they've already identified this person who's going to run it with what i'm told is a good track record from a well-known company we'll see.

but they're off and running, and jim and carl, it comes back to -- and we can bring that chart up from moffett nathanson, what we've been talking about for years, but what has continued to increase in pace, that is each quarter, since 2018, the percentage decline in terms of the people who have either a -- the -- a virtual mbpd, like youtube, or the traditional cable bundle, and that percentage decline keeps increasing, not decreasing and that is forcing all of these providers to figure out ways to keep these subs or find them in the new world. >> so, i have the full comcast package, and i have peacock. what changed in my life? what will change >> if you're a comcast subscriber, in other words, you get your cable via comcast, nothing. you get -- you'll still get all your sports because you're getting espn you're getting fox you're getting turner on your -- on comcast, and you're paying

for them you're also getting news, and then you're getting those shows that you like to talk about. the fire and the murder. >> now, how about my never -- cord-never kids who only have netflix but really like sports they have something. >> that's the cohorts. my 21-year-old son, who conceivably, when he gets a job and is out there in the world, says, well, i don't care -- i'm never going to get a cable sub >> you know whoy? they don't care about "chicago fire." >> i'll pay my $49.99 for this new app. it's not going to bid on sports rights itself. that will be each of the parents doing that on their own. it's not an entity that will -- it's just aggregating and distributing >> does the phrase hulu for sports ring with you >> yeah. >> you like that >> it reminds me separately of what goodell said in a presser

this week about the wild card game on peacock that had lowered the audience by ten years, and i wonder if ads are part of this if there's a premium that they'll pay for that kind of younger audience >> it's interesting in terms of that demographic, but obviously ads will be an important part of it don't get fooled by the one third, one third, one third ownership because the revenues will be flowing through. they're taking a shot here charter-disney battle in the fall and what happened there and where they ended up with, that sort of started a lot of this process, because it did destabilize the bundle even more >> but look, i watched you yesterday come on with the whole story, except for i didn't think they had the whole story they had no -- why -- what was the rush here? no name, no executive, no clarity. what was -- what was the gun to the head >> they thought it was going to leak >> it was just that? >> that's what -- i asked the same question, and the answer was, we thought it would leak

because you're right even though they have a short definitive agreement, apparently, they don't have a long definitive agreement and no name the executive has been identified they do have a pretty good idea on pricing, is my understanding, and so let's go with, we're guessing, but i'm going to guess like $44.99 a month, something along those lines, but you're right, jim it felt a little preliminary >> the other framing headline this morning is the group gets together to fend off tech giants when it comes to sports rights is that part of the battle here as well? >> a lot of those deals, you know, these deals from 2032, some of these deals last long. >> they do >> at the same time, we've got apple with lots of money, and it seems to like sports obviously, amazon, jassy likes sports, so there is some sort of a three against those are better than one >> conceivably, although, again, the entity itself is not going to be bidding on sports rights it will be espn still doing that by the way, espn+, the plan, i believe, is still to introduce

their own direct-to-consumer offering what that will be or how it will differentiate from this or why and how that will be priced, maybe it's going to be more immersive. maybe there will be more betting associated with it, given that partnership they have, jim, but it does raise that question. however, max, remember, which was going to have a sports tier. they're not going to anymore >> could this bring in more money to what looks -- to still a tattered balance sheet when it comes to warner bros. discovery? >> this is an attempt to try to keep subs and find new ones. that's all it really is. by the way, at the same time, it could put pressure on the bundle, because you can get more people leaving it, saying, i don't need it anymore, and that hurts warner bros. discovery warner bro with all their linear cable networks they get paid for the worry is the cable providers will say, i don't want to pay for all this stuff, i just want turner >> do you want the whole nhl put together do you want the nba put

together does that matter to you? what is ellison's view if he got paramount on paramount plus? he doesn't seem to care for it >> yeah. i don't -- paramount plus is a bit of a conundrum if you talk to bob bakish, the ceo of the company, he'll tell you they're on track, but there are plenty of people who have some doubts. we'll have an opportunity to talk -- >> you have him? >> i got bob from the super bowl, and again, paramount, not part of this, but remember, paramount plus does have -- you get most of your sports on paramount plus also get a lot of sports on nbc on peacock already, different from max and what is offered there. but we'll talk to bob. and paramount plus, listen, that becomes a question that whole paramount deal or the possibility of it, i just don't know, guys i can tell you, i don't believe that warner bros. discovery has any real interest here at this point. i'll be curious to hear their earnings call and whether they address it in the same way that

brian roberts did on the comcast call, for example. and you know, the red bird effort continues to sort of move forward, but it's complex. >> what do you think -- >> then there's byron allen, which i don't want to get into at all >> what is the size of the people, when you look at that chart from moffett nathanson, who really don't have -- is it a hundred million that is untapped >> i don't know the number all i know is that number keeps growing as people fall off the bundle >> i know. >> and then the question becomes, what about news what keeps the bundle -- why >> jim had this great analogy about layoffs, playing jenga you're trying to remove as many people without making the tower fall >> to be fair, that is from amazon, when i was pressuring amazon to say, listen, if you cut out 100,000 people -- they said, do you want next-day or two days we don't know. >> but isn't the same thing relate to content? >> i think it's a terrific analogy.

terrific i don't know which piece of the puzzle makes it so that you want it or want to get out. look, i think that -- this is one of those things where i really want to get in the minds of the people who never had cable. do they say, suddenly, oh, dang, $43? no i'm not paying that extra $43, i'm going to chipotle. that's the tradeoff here >> you're right. and even then, you may not get everything you're looking for. there might be some game that you're not going to get. but i get it, completely understand why they would be trying to do this. you've got to try to keep the subs and/or find new ones if you can to support these networks. >> is it that dire >> is it that -- >> is it existential for these companies? >> well, no. i mean, not -- existential no they've got a real issue when it comes to general entertainment networks on cable,

it's existential when it comes to news, you have to have real questions >> i didn't ask if it's existential for us >> it's always existential for us we're at that age. >> reminds me of the reuters piece yesterday also talking about content, citing, i think, 17 unnamed media executives that were in the middle of a great contraction in content, that we moved our way through the strike, and a lot of those projects that got pulled off the table are not returning to the table. >> my problem with all this is -- and look, regular content, linear continue, it's not there, but the nfl, how much of this -- the nfl is not -- what, we have, what -- we have monday night football what do we get here for nfl? nfl is what is driving people. nfl is what's watched. >> yeah. you got a lot of nfl here. >> what do i get >> let me look at the release here oh, it just says, "nfl." >> all right done done where do i send the check?

>> i thought they actually had -- yeah, you don't get it all. >> i want nfl through -- i want to go to draftkings and get nfl. >> by the way, if espn does figure out a way to do that deal with the nfl where they would take the nfl channels and put them into espn for equity stake, then you get even more, conceivably. >> that would be amazing if they got that >> but i don't know if they'll get that deal done that depends on figuring out a value for those networks from the nfl and then ascribing a value to espn and everybody agreeing >> david would ask me, eventually, which is why is disney stock down? >> why was disney stock down and the others not, jim? >> i don't think that people know the economics yet i think the economics look like one-third, one-third, one-third, and it's not the case -- >> it's not. the ownership of the reventity t not the revenue flow-through >> fox is out there morning. lachlan has made comments about this >> let's take a listen to fox's ceo talking about this new

partnership. >> this new and unique digital distribution platform is focused on sports fans outside of existing pay tv offerings. upon launch in the fall of 2024, the platform will offer a broad suite of sports, including those from a combined 14 linear networks that broadcast sports today. the inclusion of our networks in the platform is consistent with our strategy >> there you go. that's lachlan they had something like this in australia already, apparently. >> they did. it's called k.o. yeah and so they brought together a number of providers there. so, there was a template for this idea. >> just to go back to -- it's -- we work for comcast. >> yes, we do. >> if peacock did not get the people to stay after they took the chiefs-miami game, does that say that there's a power shift here, that comcast is going to

have to go to this group and pay them extra and have it on comcast? >> i don't believe so. but i don't know and there are still a lot of questions about the direct-to-consumer offerings, including peacock, and their viability, because they never generate real cash and paramount plus also. and that does lead to these questions about consolidation. really, the question there being morecomcast and warner bros. discovery, of course, not comcast and paramount. that's not happening as i said, warner bros. discovery and paramount is not happening. >> i know that little far afield, but seems that -- why would the -- why would the ftc like this? it's going to raise the price for -- >> it's not -- i mean, >> it's the collusion of three networks >> it's not collusion. it's convenience >> okay, good. i just feel like -- >> it's convenience. >> they're always on the lookout. >> they're not bidding as an entity >> i don't think she likes you talking to me.

we may be colluding for all i know >> lina? yeah >> like kanter now when you see good antitrust cases, it's usually kanter what are you doing >> i'm looking for my phone. what'd i do with it? i feel naked >> david, one last question. >> yes, jim? >> which of these three actually said, listen, we got to get together >> i believe it began with fox -- they're all talking, and i think fox and disney sort of started a conversation and then went to turner when they felt like, there's no issue here in terms of antitrust, let's get a third. >> it's a fascinating story. it really is people at home might think, geez, because we're in this business -- no, i think this is -- when i saw the moffett chart, that was really the way to start it. look, i mean, in 2016, espn was hundreds of millions of subscribers, and the world is just -- it is seismic for our industry >> yep >> yep

>> it's news you really wanted to bring up news >> we got a lot more news. we got movers today, jim >> you have to watch us. how are you going to make any money? we're indispensable. >> don't you worry one of those movers, of course, snap today, down 30% premarket. we'll get to that, and jim is right. we'll talk some boeing, cvs, target, ford, chipotle, tesla, yum china, roblox, hilton and more when we come back unlocking the power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab. you always got your mind on the green. not you. you! your business bank account with quickbooks money now earns 5% apy.

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>> yeah. and i was looking at what they have to pay for their datacenter business, and they claim they're getting the costs down i hope they do look, i read the call, and i'm a big -- now, i'll read ten calls every night, and this was the worst call why? because they say they're doing incredibly well. i mean, there was no mention of how poorly they're really doing, and there was a critical moment on the conference call with an analyst said, you guys -- when are you going to get scale and correctly, he said, we have scale. we have our million viewers. the problem is this. you have a person who's 11, that's not your core audience. that 11-year-old is not going to buy a tesla. that 11-year-old is, david, is not going to the supermarket and buying lay's potato chips. that 11-year-old is playing roblox, we saw good numbers there, but you can't make a business anymore on what a 12-year-old is going to spend, how much they're going to spend on colgate they may, at that very moment,

start thinking about colgate, but by the time they get to 18, they're buying it on amazon >> they're not going to temu >> i bought some stuff from temu for my wife. she said, did you get this -- this stuff is from china i'm not wearing this on my body. i said, well, yeah, but it was, like, 12 bucks she said, oh, then, fine i mean, i tried to get temu because i wanted to see how much the chinese communists want to know about me, and at the last minute, i pivoted and bought it from amazon because i decided they want me to buy baba >> you think whatever it is you bought from amazon wasn't made in china >> no, i directly bought from temu from amazon because i didn't want temu to know everything about me. i bought some goods from them. >> you went to amazon. >> i bought some goods from temu, and they distinctly -- the moment i got them, i thought of one thing. waste management they went right into the landfill that overlooks the hudson >> so, volumes will be higher that quarter >> this is just a remarkable --

>> so sad. >> temu, waste management, bingo. >> what percentage of overall imports over the last 20 years from china have ended up in a landfill >> have you ever been to the landfill it's a sight to see. it's everything that china makes. it's a little bit of china right next to the hudson >> at least they used to take some of our plastics back. now they stopped doing that. >> they make coal plants >> we need to take their plastics back. >> they are coal buyers. >> we'll get cramer's "mad dash" and countdown to the opening bell in a minute across the globe, industries are transforming and businesses need to navigate the changing landscape to stay ahead. when you partner with barclays, every change leads to a bold possibility. you have the vision. we have the insights, financial solutions and global perspectives to help you make it real.

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>> announcer: the opening bell the brought to you by nuveen, a leader in income, alternatives, and responsible investing. all right, let's squeeze in a "mad dash" and then we'll have an opening bell. >> last summer struck a chord. everyone was right because fortinet is in such a slowdown it's big every cyber stock is now going up fortinet, better than good

>> let's get the opening bell. at the big board, it's bank holding company south stake celebrating a recent transfer to the nyse from the nas. at the nasdaq, a biopharma company focused on the needs of cancer patients. jim, i wonder, high-level view, if you have been impressed the way we've held in there after the worst couple days for treasurys in a year. >> i think there's a ten-year today, so i don't want to be precipitous. it happens to be a very big deal it's 42 billion coming it's holding at 4.1% interest rates are -- we did have a spike, and the market just said, so what that has not happened in a very long time. actually, only a couple periods in the '90s where you could still make money when rateswen up so, this is -- i was saying last night, this is a remarkable moment, frankly. we have some companies that are doing so well, and they're

leading other companies, and the sectors are amazing. industrial, health care. these were ones that should have been hurt, and what it says is, to be so bold, is that a lot of people who had to get out have gotten out i don't see sellers at higher levels look at the trajectory of cat from $208 to $330. where are the sellers? yesterday, it was ge health care ge health care had been pushed endlessly by the shorts. boom, $81 on a good quarter. it's like the sellers evaporated were the sellers vaporized what happened here >> i don't know, jim what happened to the sellers >> where are the sellers >> i don't have an answer for you. >> where are the sellers of disney >> disney is actually down it's following through on that sort of -- >> you killed disney >> i didn't have anything to do with killing disney. we'll get the earnings from disney after the bell tonight. we'll hear from bob iger as well i think he's going to sit down with julia boorstin. >> that will be good >> we'll get more color there on, obviously, this new partnership that we talked about at the top of the show and

future for espn+ and more importantly, you know, get a sense for the parks, the consumer >> absolutely. >> and disney plus >> well, very good website, by the way. interesting website on -- >> oh, yeah. and obviously the proxy fight with nelson peltz. >> in your community bank, how the regulators ever let that -- the worst bank in new york buy the default? i don't understand how they did that i'm going to investigate that. not investigate, i don't have subpoena power the analysts are out saying, you should buy on the weakness, huntington bank. you should buy comerica and morgan stanley last year, we were all running from the banks because of what happened now, people are saying, buy the banks. i think there's a lot of reassurance. there's also, you know, you'll get a mcdonald's mcdonald's will say, look, the consumer is weak, and then you listen to chipotle last night, brian niccol no the consumer wants value and

freshness, and they want fewer ingredients, and mcdonald's isn't resonating for them, which is really amazing. it's finally happened. i think we're at a tipping point where people actually care about what goes into your body >> the chipotle comps are pretty amazing. street was looking for seven operating margin up 140 basis points to 25-plus. >> brian niccols, amazing, and they do have this labor -- when your sales go up, labor costs become less of a percentage. they're not worried about california, and kavocados are down, but i would say this is a company that is, by far, the best-run restaurant chain. you want to contrast that with yum, which did have problems with its different divisions -- i shouldn't say some they had problems on a couple of them but at the same time, you know >> how about yum china >> yum china >> double beat >> i have some good stuff on yum china. apparently, the kfc in china has

a really cheap burger package. >> oh yeah >> don't you love that who knew here, yum china soars as economy drives consumers they have -- yum china, the numbers were incredible. they have a lot of stores. but these guys offer tremendous value. i couldn't believe how inexpensive -- i mean, geez, a couple of bucks, you get a good meal i just think that yum china -- i felt badly that i didn't spend more time with yum china it really is good. that's a lot of stores >> you got a file on -- look at all these files. it's amazing >> what do you need? >> uber. what are your thoughts >> i think uber should be up >> here's your file. there you go >> the stock ran up. >> they beat an ebitda they beat on a lot of the key metrics. that said, perhaps the expectations were even higher. >> the expectations were too high, but i thought dara did a great job on "squawk," and i liked what he had to say, but he is classically not promotional

i say, buy the stock don't worry about it good quarter >> booking.com >> all good. >> capital return. yeah they also continue to cut head count. fiscal year '23 head count down 7% year over year. >> look, the stock -- look, sometimes, the stock, the initial reaction's not that good, but i think that dara tells a great story. i'm not worried about that at all. >> speaking of head count, how about story in "the journal," tech layoffs are coming for that sector as they reset for a.i they mentioned docusign. there's a story on the tape this morning about tesla staff being asked about which workers are crucial amid some of these performance reviews. >> i still am reeling from the idea that a court found that -- i know it was a disclosure issue. a court found you shouldn't have owned it because they didn't disclose the conflicted border, which everybody in america knew there was a conflicted border,

but score one for the idea of moving to texas for elon >> i would assume he will end up reincorporating in texas we keep moving they have the headquarters in texas already. obviously, left california for that it's just a function of operating under texas's corporate laws as opposed to those in delaware, which are, by far, the most ubiquitous and clearly you have a very well-defined body of corporate law there. >> yeah. >> that shareholders typically like >> yes shareholders typically like you mentioned how things typically react poorly end phase had been driven down in part because rates went higher, and end phase is a financing play the stock is up today because the ceo just called the bottom and said, look, things are better if rates go up, enphase goes down >> eminded me of the micron

call the market loves it when you say that >> if you went home tonight and said, the dogs are inflecting, everyone would say, let's buy them some farmer's choice food >> it is a good word >> i think andy reid is going to inflect this weekend >> is that your pick >> yeah, yeah. it's reid-mahomes. it's like belichick-brady. enough >> inflection. >> i think gay is the lt of that team >> purdy is soft >> wait until gay gets to him. he's frightening >> i haven't seen purdy -- >> purdy ran like a crazy man in that last game against detroit he was amazing >> you think that spags hasn't diagrammed how to get to purdy give me a break. just give me a break >> i'm taking the other side of this >> good, for a hundred you want a sanity check? news street has a list of the total amount of money that's going to spend -- that the big ones, microsoft, meta, google,

amazon, because i haven't mentioned nvidia in two days, going to spend between 80 to $90 billion on chips in 2024 that's to nvidia lesser said to lisa su at amd, but two were left out of this exciting last 24 hours, which were nvidia and lilly. lilly, the analysts were saying, why didn't you give us more about this trial six million people may die from this disease they said, we just got to phase 2 yesterday. come on. lilly is another stock that was victimized there was a spread the wealth campaign to other sectors. merck is now one of the best performers >> yes, it is. one of the best this year. keytruda continues to be a key drug when it comes to treating cancer >> there's a great variety of stocks that are working. i don't like the broadening term because when we were doing well, when there was f.a.n.g., but wow. you find that you'll have the analysts, the long knives out

for david gibbs on yum because of pizza hut, right? and then, you know, people -- then the buyers say, i don't care about the long knives, i'm buying the stock >> cvs >> when i was at -- when i was out in california, everyone says that karen lynch is beat, the ceo of cvs, and i said, are you kidding me she's killer this thing is going to be something to buy everyone says, jim, cvs is going to get crushed by aetna. >> that's on a guide cut >> they did warn about medical costs. we saw what happened to humana >> humana was horrible humana offered a package that was completely unnecessary >> that was obviously medicare advantage. >> that was the hail mary to cigna. give me a break. that was terrible. >> the other names, jim, nine-month high for target today on this headline they are considering a membership program. gordon goes to buy on them >> target's a very cheap stock at 17 times earnings i'll give you one last night,

ta derivative that was very important. a company makes deck, and their numbers at home depot, really strong i think home depot is a winner ahead of their february 20th report because the professional contractors is back to having seven weeks of backlog, which is very good news, and the professional tends to shop more at home depot. >> not at vf corp. >> no. he has his work cut out. i think they need to do a deal i know bracken typically is smarter than anybody he's done great things at logitech i don't want to give up on that company, but that's a bad -- he had a bad hand you took the bad hand there. he's showing it too. >> hasn't turned it around yet >> he just got there >> all right, i just said, hasn't yet >> there's david with the short leash. let's get rid of him he's been there for, what, 106

days >> just the name alone, got to keep that guy around >> bracken darrell >> sound like the company. >> i'm long bracken darrell. >> what'd you pick up down at the bracken darrell? >> it's a treasure hunt. >> oh. speaking of companies that just have never turned it around, what about -- >> charter >> no, no. well, ugh. chris winfrey is in a little trouble there. snap look at the five of year of snap when do you just -- would anybody buy this thing could he just put it out of its misery >> i thought about that. who's going to buy snap? who knows less than evan spiegel, but i couldn't come up with anybody >> that's a painful chart. >> they're doing great you just are looking at the stock. they're doing great. >> meta, which is so much larger, is still growing faster and yet has a lower multiple to free cash flow >> 30% growth for meta >> looking at some of the

numbers here the revenue growth number is so far ahead. >> i'm going to say it once, and that's the only time evan spiegel, nice guy >> oh boy. >> that hurts. >> you nice guy'd him, huh sorry, evan. >> we haven't touched ford that's going to be about a nine-month high. maybe six to nine-month high >> when jim farley came in -- by the way, adam jonas was on this call, ford vs. ferrari, ford wins, and then his note was like it was written by someone at bank of america. i don't mean that -- bank of america does fine. >> it didn't have his typical panache. >> there's only a couple guys in this business that make it worthwhile for us. shaq and barkley with ives and jonas. jim farley told me, we're not going to make vehicles that don't make money, which means the second generation ev -- i.c.e. it. i like that.

>> you do have this "times" piece, how ford's f-150 lightning, once in hot demand, lost its luster. >> i'm not going to disagree with that. >> argues that the early adopters purchased and that was the end of the pickup. >> last night was really about hybrid the greatness of the hybrid. >> toyota, all-time high >> yes, yes. my maverick, david, when i put you in a maverick and we go to costco together, it's going to blow your mind >> will it isn >> we're going to bracken darrell, then to costco. we're going to crush it. >> one day that will actually happen >> it will never happen. >> no. >> you'll buy dog food, but you won't believe me, you'll buy dog food for seven years there >> i don't have anywhere to put it >> that's right, he's in an apartment. you got to get one of lisa's houses >> can i rent one just to store the costco dog food? >> got the special now, they have $5 billion that they, you know, they're going to lose on evs, but that has to end. and jim understands that the software business is very good for the pro

i'm putting a stake in it. i'm saying, ford, bottom, but toyota we don't talk about japan enough >> we don't talk about toyota as much >> in 1989, they were kings. >> and they're looking pretty good again not bad. >> they are. >> over in japan economy's growing. >> what do you say about that? >> toyota's feeling good about their hybrid strategy right now. >> the enigma of japanese power. i wonder how the chinese feel about it they put the butcher in charge the new s.e.c. guy in china. they call him the butcher. >> really? >> yeah, i think he's a butcher for sellers. the problem, of course, this is what always gets china in trouble. the numbers are bad. >> baba was higher, then flipped down on a double beat. got a buy boack in there they're cutting 20,000 head count. >> they got to shoot some of the sellers. just one or two sellers, they shoot them and that's done you sell, after they shoot a couple sellers i think you hold off

>> come on, come on. >> go back and look at amnesty international. that's where i get my information. >> when time period? >> the 2015-2016 bottom. i looked at the executions in china using amnesty international. i think they formed a bottom or it was a reverse head and shoulders. >> call me skeptical that they were actually killing people for selling stocks >> i just tried to -- >> i'm not -- i'm not willing to accept that. i think they have a system that is different than our own and more -- in term of how they treat their participants in the capital markets, but i don't think they're stringing people up for -- maybe i'm naive. >> all you have to do is -- i guess you go to tucker carlson he's just interviewing villains and dictators. >> he's my go-to isn't he yours, carl >> can't say that he is. >> it isn't what i would have done

>> i think it's fair to say, carl, that he's not a fan of china. >> i'm coming around >> in fact, he's advising what he hopes is the incoming administration to go with the 60% tariff when he is treasury secretary? what are you going to be >> stop it, stop it. it was discussed at home don't do that. >> i think treasury secretary. >> it was discussed at home. it got to the boss >> the boss nixed it >> even if the call comes? >> i keep hearing that david said you're going to be involved in the next administration and let's just say, i hope that david is misguided, and i said, i have no comment. >> why give her an opportunity to buy some new real estate >> it's -- i make fun of his dog. he makes fun of my life. >> no, i'm not making fun of her, she's a magnate >> no, i said life, not wife if you make fun of my wife -- here's what happens if you make fun of my wife it was really great to see you it's been a fabulous 25 years. that's what we do.

the first time around, i -- never mind >> i would never do that i like your wife >> good. elf is down. >> i was going to ask you about elf as it pertains to the consumer and then hilton, jim, which is at new highs after this beat >> look, i think elf is just the shorts working it, because elf was a great quarter, and hilton was not that bad travel is doing incredibly well. people like marriott what's incredible is that estee lauder lost a lot of share they might deny this, lost it to elf. they called a bottom in china, mostly because of hong kong. e.l.f. was -- look, you want to sell e.l.f., that's fine the stock has run. number one in target, by the way, one of the greatest performers of all time, by the way, e.l.f >> new york community bank corp., not doing well. it turned around it was up. they got a moody's downgrade great. long-term issuer, ba-2 now. they had a conference call they continue to reassure on,

obviously, deposit stability >> right >> but you know, they're just coming after it, jim that's really what it's about here $83 billion, up from year-end in total deposits, total insured collateralized deposits 72%. total uninsured, excluding collateralized, up $22.9 billion. over $10 billion of reciprocal deposit capacity and on from there. the question's been asked. they continue to describe as fine or stable their deposit base and yet, we just have this pummelling of the stock price, which, at least you can say, you know, we got to follow this more closely. market cap-wise, there's not that much left here. will it have a systemic impact hard to imagine it would >> how did they get the bank you know, if you take a look and go back to the original research of when they got the bank that crushed them >> signature, you mean the assets of signature? >> the fed was like, okay, fine, you have it.

meanwhile, they had terrible commercial real estate someone dropped the ball at the new york fed i hope it wasn't josh frost, my man who's doing the ten-year today. >> they were clearly not the proper buyer for those assets. >> so, you say that. so, the people who made the decision, weren't they capable of looking at the new york community bank i was saying that this bank should be sold and sold and sold, and i was worried about the dividend before they did signature. >> the jpmorgan downgrade, there are two of them, but the jpm one asks why you would let the chief risk officer go and not say anything, given the changes. >> they have a new executive share who hosted this conference call we'll have more on this. we've got to continue to monitor it >> anyone else that deposits there, please do not worry let's watch bonds. as we said, be a busy afternoon for fed speak. kashkari already joined the gang on "squawk" this morning we'll see if the ten-year manages to hold this 4 handle. back in a moment

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let's get to jim and stop trading. >> am jen has had a remarkable year and timing. last night on the call they did not drop the incredible hopeful nature of a bill that is every bit as good as the gop one that lilly has. so people are not thrilled i see people being greedy, let's see what bradway has i think amgen has everything that lilly has what do you have tonight >> i have mattel, which is really in david's world. >> why because it's more

content? >> no, just activism. >> oh. >> and i think elf is going to distinguish itself tonight but mattel, the toy category is challenged look at roblox what a show, david killed disney and paramount. >> i did not. >> you killed kenny too. mad money, 6:00 p.m. eastern time when we come back as we're five points shy of an all time intraday high. next victims. ♪♪ you ready for this? ♪pump up the jam pump it up♪ when it comes to ai, there's something big happening. the smallest things are creating giant revolutions...

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welcome to another hour of "squawk on the street" i'm shepar sar eisen with carl quintanilla and david faber the s&p up about .4%. materials leading for a change consumer discretionary, health care higher as well. so are staples and industrials what's lagging, utilities and real estate. noo nasdaq up .3%. only the down is up .2%. looks like we've had a trend of higher yields lately coming off that today ten year yield 4.08% we'll talk about the fed, the auction in a moment. 30 minutes into the trading session. three movers roblox shares are surging. the company's quarterly sales and deferred revenues hit a record $1.1 billion. snap shares are plunging, revenue missing estimates,

guidance coming in light we'll break down the numbers with an analyst who still calls the stock a buy. we watching new york community bank corp. and the regional banks, making leadership changes and getting downgrades today we'll do a deep dive later in the show but as for the overall market, guys we have a big ten year note auction today. >> biggest ever, right. >> this is a record auction. and so, i'm paying attention to it i think a lot of people are paying attention to it one positive signal has been the supply lately has been met pretty well. and that's thanks in part to a changing fed outlook although i would say now there's more uncertainty in that federal reserve outlook and that is the when and the how many interest rate cuts because we're trying to recalibrate post powell last week and some of the fed speak we're getting this week and we have gotten a lot of it. what's important i'm highlighting hester because

she's the voter, cleveland fed president. here's what she's saying, it would be a mistake to move rates down too soon or quickly without evidence that inflation is on a stainable and timely path to 2%. basically it's what powell said last week but i think we're getting more on the why powell said last week because clearly on the committee there's agreement they don't have enough evidence and guess what, the citi group surprise index which measures what we're getting on the economy is surgely right now because we had a string of good data which makes you wonder if inflation is going back to 2% right now. where the fed is >> kashkari said maybe two to three cuts this year, seems appropriate. >> echoed what he wrote in his es kay we know the fed last time they gave a dot plotter put in three

cuts but the market was ahead of the fed the feeling was the fed would catch up to the market, now is the market going to catch up to the fed. in last week's meeting we didn't get an updated dot plot. are we going to get five cut, three cuts, when are they coming another thing is what's happening on the economy i mentioned the good data, we talked about it, services lately, jobs, job openings better than expected i will note on the consumer's in great shape, depends on what sector you're looking at we got the new york fed's quarterly data on delinquencies and debt and debt is high and these delinquency rates are moving up. now they're not anything that economists are necessarily too worried about as far as indications of imminent recession or anything like that. but there's a trend in place and

the trend is that delinquencies are moving higher, especially in auto, in credit card something we have to watch, especially at the low income scale and also in younger consumers according to the new york fed. >> compare longer term that goes back so gives me a sense there. >> in q4, a number for you in q4, 3.1% of outstanding date are in some stage of delinquency at the end of december comparing with 3% the quarter before and 4.7% in 2019. >> 4.7 >> correct but two caveats. number one, student loans aren't measured yet because that kicked in late. and number two, mortgage debt is low because people are locked into the low mortgages still so it's not quite at the same level as well. but we're not totally there yet on all forms of debt delinquencies where we were in 2019, which is why it's still okay but we're watching the

trend and it's moving up for certain -- >> some would say normalizing. >> right and we are seeing more borrowing of credit cards for instance and debt on consumers. we also have some color from companies, you know, vf corp. not sure it says much about the consumer but their brands but listen to how this ceo sounded last night. >> you hate to see numbers like we have right now, absolutely despise it but i have a -- it's a bellwether and it feels -- intuitively feels it gives me a stronger sense where we're going. you don't know you're coming out of it until you bounce and we aren't bouncing yet and we will. i feel more confident about it than ever. >> in part they blamed some macro and warmer weather but it's a statement how the brands are not cool right now, especially north face, timberland, dickey's, vans, all

double digit >> vans down 29 and overall down 17 we have a piece about the ceo exiting around what would be a turn around plan. >> dtc down 8% so that was particularly bad but, you know, it -- also, it just shows that it's not -- we're not in the kind of consumer environment we were in say 2021 coming out of covid where all the consumer companies were doing well. sonos another area the category is weak. listen -- actually i'll read it for you. the results according to the executives there the results were a hard one as we navigated the cyclical challenges in our cat governor in a highly promotional environment. as we have discussed in the past, the home theatre cat goir has not yet recovered and remains subdued. this is in part due to a slow market for tv purchases and difficult economic conditions in

parts of emea and apac >> you also wonder what kind of competition they're facing. >> sure. especially like in asia. >> not a big yuser of their project. >> sonos. >> yeah. >> we all invested in our homes in covid and then decided to go to concerts. >> or stay in hotels yesterday around the world. >> yes here's the hilton ceo. >> we expect performance to be driven by continued growth across all major regions with international markets modestly outpacing the u.s. we also expect positive growth across all segments driven by continued recovery in business transient and group, coupled with steady leisure demand. >> chris is going to join us on money movers in the next hour and we'll go through especially the guidance where there's some questions i think on how strong

that demand is going to hold up. it gives you a sense, david of more mix i would say the continuing theme for me is more mixed outlooks than we're getting in the economic data which appears to be very strong. >> as it gets clear perhaps we'll focus more on rate cuts at some point not yet. >> not yet >> let's come to a story we first brought you a story yesterday right here on cnbc that is this new joint venture announced by disney, fox, and warner brothers discovery to create a new sports programming app. don't have a name yet. don't have a ceo although i'll get to that in a minute don't quite have pricing but we have a stand alone service bringing together a lot of sports and will offer the dtc of espn plus. each company will own a third of

the service but the revenue splits will vary higher fees paid to espn, conceivably they'll garner higher percentage of the overall revenues that come through for the subscriber fee that will be paid the fee itself, this is going to launch they're saying in the fall of 2024, so not that long from now at least a fairly short window in terms of launching a new service of this type it's going to be expensive given when you put together what fox pays for all its sports and what turner pays and what espn pays you get to a big price i'm told more than 40 but perhaps not that much more than 40 figure it out for yourself but let's assume it's above 40 but maybe below, i don't know, 45 we're guessing on that point i am also told that there is an executive who has been identified fairly well known in terms of stature within the

industry and track record. so we should get that announcement, one would expect fairly soon. overall, the key point here is this is another response by these companies to what is an imploding cable ecosystem that we've been talking about for years but only has picked up pace in terms of the implosion i refer to this chart here you can't really see it but take my word for it these are the percentage declines each quarter. so it's actually picked up, we're at 6.9 roughly percent that's, you know, the second quarter, third quarter that gets to very large numbers starting with let's call it almost 100 billion people who once had cable it's a lot fewer people now. and that is motivating these companies, which obviously get paid a lot of money for their sports networks as part of the bundle but also entertainment networks to figure things out. we talked about the direct to

consumer from the entertainment side and whether they get to a level of profitability that investors like but also we have to keep in mind sports when it comes to young men, you have a couple of them, they're not young men yet but they love sports. >> they're into sports >> are they going to pay for cable, of course not but the hope is they might want to pay for this bundle of sports programming along with whatever subscriptions they feel comfortable with on the entertainment front. >> young women like sports. >> of course i didn't mean to single out just men. >> on disney aren't they going to launch an espn streaming service? >> they are. >> isn't that duplicative? >> it does seem duplicative. my understanding is at this point they're still committed to doing that perhaps call it a year or so from now, it's going to have to distinguish itself from the new offering in significant ways one would expect given you're not

bringing as much to the consumer in terms of sports speaking of sports bob bakish is going to join me on friday from the super bowl cbs not a part of this much of the programming they provide when it comes to sports is on paramount plus or our parent company comcast, also not part of this new joint venture it raises questions about and probably only accelerates the decline of the bundle of programming we grew up with and still rely on for our paychecks. >> sports is the anchor. >> news is also important maybe. >> very important. the most important. >> deeply important. >> much more on the story as we continue here. the dow is up 111 points as we head to break. our road map for the rest of the hour earnings movers to hit this hour include snap stock losing a third of the value right now following the disappointing outlook.

>> new york community bank making leadership changes it's also getting downgrades including on the analyst side. we'll look at the health of the overall regional banking industry. >> we're halfway through earnings season. most companies have beat how that's playing out on the street, as the market hovers below the all-time intraday highs. "squawk on the street" is back after this you! your business bank account with quickbooks money, now earns 5% apy. 5% apy? that's new! yup, that's how you business differently.

welcome back to "squawk on

the street." s&p trading around intraday highs today. our next guest said even if there's a miss to 25 expectations net income for the 20 companies will double for 2025 adam parker is here at post nine on another interesting week for stocks i guess and the bond market. what do you make of the last week or so that we've been here? >> to me, u.s. work as long as you believe earnings are growing, gross margins are expanding and you dream of a combination. that's the cocktail that if you're negative you're fighting. if you want to be negative you say china is collapsing worse than people think. maybe quantitative tightening were on the u.s. consumer is falling apart. you can find some stuff to support it, but i think the freight train is margins expanding for stocks is good that's the camp we've been in

since the outlook. >> you had a report a few days ago saying you could argue that margins are -- have bottomed yes? >> i think they have i think most companies have lower costs. we'll see the red see but have lower commodity costs whether it's oil or others less wage inflation we've seen it in tech companies i think as long as their pricing holds which we've seen in earnings season so far, gross margins expand and the average company can achieve that. >> what's happened to your earnings model. >> we raised outlook numbers for a few percent. we saw mid single digits earnings for a base case as long as they're up next year, markets work i think what people get confused about is if there's downward revisions that's bad for stocks.

analysts are too optimistic. in january i think they go 14% the market can work as long as earnings are going to be up in the future i don't know why you would not agree with that as your base case now i think we all get stressed, 5,000 some matching number but underneath that, the biggest 20 companies grow earnings 15% per year that's net income what other asset class can i find where i can find access to that many good companies that's the answer. >> i'm curious, your incoming, questions and where they congregate around. anything in particular you get a preponderance of >> definitely we talk to more portfolio managers than individual analysts so they're not too micro. but the big picture is the questions about the small caps, the nmagnificent seven. >> the big thing coming into

this year was we're going to get a broadening the russell is not making it happen. >> i think the beginning phase of that, small caps in november, was conditions easing. if financial conditions ease, you can dream they're in bet ershape. the follow on has to be show upside to earning. what you see from the mag 7 is in general they have a lot of pricing power, earnings potential, initiating dividends and buying back tons of stock. so they're doing things that make them superior to the average company. people can't own it because they have 525 mutual fund rules or old school risk management, biggest position can't be more than 3% of the fund. all these reasons they're under weight. >> so you think this year is like last year with the outperformance of the mag 7

versus the broader market? >> i think we're in -- i think we talked about it a year ago, very early i recall on this show i think we're in the first inning, maybe the batters box on a.i. you don't want to sound oh, they're expensive. i remember people saying nvidia was expensive last summer. come on, guys, of course it's going to be 2 trillion before it's half a trillion you're at the early phases of something that hasn't been deployed i think when you think, you're going to see software companies with accelerating revenue work, semis with a.i. work. >> you have been straightforward you have to own nvidia. >> i think there's others too. a bunch of businesses that benefit, maybe buy micron because they need memory and it's cheaper everyone has the mandate to stick to they raised the money with a certain mandate. but you have to -- you don't want to look back as a portfolio

manager and say i didn't own a.i. because it's too expensive. it's a theme that every company is trying to figure out what are my employees doing, customers doing, and can i do things to improve and be faefficient? >> i think what people don't get is the productivity of the companies and how we're doing things now i can search every earnings transcript of every company looking for a few words, link it to my database give investment advise and if i ask you to do that ten years ago, you would have gone opened it, control f, it would have taken forever. we bought an nvidia one i can do it at two hours, every transcript for 10 or 20 years. it's just efficiency i have a little company. apply it to a real company i don't think you want to bet against margins going up for the average companies.

that's why we like equities. i think if you want to be contrary, you can get bit lower down the quality stack but i don't know why you wet against mag 7 going up. >> look forward to checking in soon >> good to see you guys. still ahead, shares of baba sliding on the back of the latest results reversing gain stock now down 70% in three years. still 80% of analysts still call it a buy we'll breakdown what's ahead for the company next

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welcome back to "squawk on the street." alibaba under pressure after a revenue miss shares are down more than 30% from the 52 week highs deirdre bosa has been tracking that and joins us with the breakdown. good morning. >> reporter: good morning, sara. even a fresh buyback could not appease investors as shares down more than 50% as the results fell shy of expectations the problem for alibaba it goes back years and may tell about the chinese stock market at large which we know has been under pressure

since december 2020, alibaba and the hang sang have moved in tandem introducing a wild card for baba saying beijing could and would interfere at any time, even taking aim at the largest most successful companies also around that time we heard calls that china was uninvestable three years on, chinese companies have deeply performed. and there's signs that beijing is in damage control hinting it will step up efforts to prop up the market chinese stocks had the best day in years on tuesday. bringing it back to alibaba because it's the proxy for the market at large. restructured the entire company, tried to spin out the cloud division, nothing is working and today's earnings underpin that

beijing kneecapping it in had 2020, that changed the field and allowed new players to rise maybe at alibaba's expense but that was a theme within this quarter as well. more competition, the core ecommerce business barely growing, guys. back to you. >> barely growing. thank you, deirdre bosa. coming up we'll give you a check on the financials and the shares of new york community bank corp. down another 11% concerns around that bank in particular does it spill over into the regionals overall? we'll discuss right after this giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning.

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welcome back to "squawk on the street" i'm bertha coombs with your cnbc news update the results are in from the nevada primary while she didn't face any major challengers nikki haley lost with more people choosing to vote for none of these

candidates former president trump was not on the ballot. president biden won the democratic primary the marine corps is searching for five marines after a helicopter traveling from nevada to myanmar near san diego went missing sheriffs and air patrol are said to be helping in that search. amazon may soon show you the name and photo of the person delivering your package. the information reports that this is part of a test aimed at protecting the company's flex delivery drivers amazon may also provide them with amazon branded stickers and lights to put on their cars since they often use their own vehicles the move is likely in response to a report last year saying flex drivers have been threatened after being mistaken for intruders. hopefully it makes it safer for folks on both ends. >> bertha, thanks very much. watching the regional banks,

new york community bank corp. making changes da nell low held a conference call in the last hour to talk about the move and the bank's future. >> we've gotten a couple of tough punches to the gut but we're strong and look at the deposits of this organization does anybody think that they could be higher today than at the end of the year? given what we've been going through here come on. that's -- if that doesn't tell a story about the strength and resilience of the company and the people that work here, i don't know what does. >> comments come after moody's downgraded the credit rating two notches to junk. the bank also hit with a class actionlawsuit over recent dism sures. and today cut to neutral

they've lost 60% of the value. we know what secretary yellen said about the regional banks on the hill and implied volatility on friday on the put options, just soaring in the last 24 hours. >> they've been coming after this one, after that quarter, with the unexekt ped losses and provisions that took place there. a lot related to the sizable concentration of commercial real estate loans on the asset side of the balance sheet here for the bank that continues to be a concern and perhaps more of a concern here than it would be at other banks where that concentration is not as large. >> that said, playing on the comments here, totally liquid 37.3 billion exceeding the deposit base they have the ratio there given at 167%. uninsured deposits about 23 billion. lendable valuable, catch held on balance, 17 billion.

all this to shore up investor and depositor conference in the face of the moody's downgrade that you mentioned, carl they view the funding and liquidity they say it's a relative weakness compared to peers due to the high dependency on wholesale funding and a smaller pool of liquid assets when compared with peers also setting the loan deposit ratio at 10 4% higher than most peers. the focus not unexpected on commercial real estate the thought had been it was a kitchen sink quarter, they were really cleaning everything up but i think they did not anticipate at all they would get this much of a negative response from the stock market. >> i think now we wonder what contagion look like. it's clearly not what we're seeing in march of last year but we have seen other shares of the smaller regional banks, flushing financial, for instance, valley

national bank take a big hit, 15% or so since this earning and the word idiosyncratic comes up a lot is it i diosyncratic because of the exposure to commercial real estate than some of the other mid sized banks. we talked to betsy of morgan stanley and she said not a risk for the mid size banks this is smaller banks issues >> we've been talking about it since the earnings themselves. they did buy assets of signature bank one of thefailures in the spring and it raises a question, carl, as to whether the fdic should have taken a closer look at the ability to take on those assets. >> watching it in the coming days let's drill down on big earnings snap and uber. uber seeing a profit

check out snap, falling short of expectations facing competition in the ad space. that's where we begin with our next guest, rob sanderson. great to see you you make the point you were looking for greater momentum in the recovery and there was a sort of budding enthusiasm for a recovery, yes? >> yeah. this is -- the snap quarter was -- it was basically in line with consensus, mostly inline outlook but big expectations missed rerated up about 90% since the third quarter results. strong market with the s&p up 20%. had big changes early in the year, disruptive for large advertisers. looking to ramp it back up but remember, this is the same medicine that meta took a year ear earlier. revenue declined for meta for three quarters before ramping up

slowly that's what snap is hoping for in their future but definitely a disappointment along the way here in q4. >> the skeptics do point to, compared to meta, a lower index to small and medium businesses how much does user growth get you if you don't have the eyeballs >> meta is the best in the business for sure. nothing compares with the reach and ability for meta to drive real business outcomes for small businesses it's the envy of the industry in that regard. there's still a lot of head room for other companies and snap included in the large advertising space. i don't think it's mission critical to get into that long tail they still have a long way to go in larger and mid size advertisers. there's still a small fraction of meta which leads the industry by a long way. >> is that why they seemingly are more susceptible to the

cyclical issues like geopolitics and what's happening in the macro economy than some of the other competitors? >> that tail provides resilience, a counter balance to some of the things happening in the broader economy. but there's a number of other issues i think that they have high exposure to, you know, kind of entertainment and fashion related categories and things that are -- of course they skew to a younger audience, a lot of gen z, that's an area i think are more volatile in advertising spend than the resilience and diversity in the larger platforms. >> rob, when you talk about the efficiency that began last november with meta and these guys finally getting in on that, what took them so long why wouldn't they have moved more quickly meta is far larger, growing faster and still trades at a lower multiple i think to free cash flow. >> the restructuring wasn't the change it's the change in the ad tech

platform they had greater exposure to the changes at apple with the tracking transparency switches, and they delayed their platform implementation until after they got through the holidays, meta took the medicine up front so it's a delayed response at snap. i don't think it's it tookthem so long that they waited to get the holiday season through and that implemented changes after and now they're just wrestling through the aftereffects of that. >> appreciate it big story. we'll save uber for another time good to see you. >> take care. don't miss more on snap next hour on money movers we sit down with evan spiegel in an exclusive you do not want to miss. still to come, the head of one alternative asset manager with over $35 billion in assets, micha michael berman is the ceo.

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wall street is in doubt over when the fed may cut rates especially as regional bank and reestate concerns reemerge one bank keeping it close to home leslie picker is here at post nine with a special guest to discuss. >> we have michael who is the chairman, ceo and president of rhythm capital i have to say i hadn't heard of your firm until last year. it really came on my radar in ernest when you prevailed against consortium of well known hedge fund investors to acquire sculptor capital you just reported your first quarterly earnings as a combined

entity and this was quite the fight. i have to ask, given your bread and butter in the real estate realm whether it made it more imperative to prevail in this takeover to diversify your portfolio given what's going on in real estate right now. >> thanks for having me this morning and having us. i think it's the prevailing in this transaction or acquiring skculptor was an important next step for our business. you hadn't heard of us, we are a mortgage reed, it was formed in 2013 out of fortress in june of 2022 we acquired the management contract from k fortress and rebranded here in august of 22 the mission has been to pivot from being known as a r.i.e.t. to growing into the asset management space i know dan and jimmy. >> jimmy the cio of sculptor.

>> yes it was a fight, we have to be as pru prudent as we think about capital we're deploying thought we had a great asset and business for a very attractive price. >> i want to talk about real estate because that is obviously making a lot of headlines this week in recent months over the last year, really. and skull -- skculptor is raisig a revenue fund today new york community bank corp. shares are down over the fears surrounding the exposure as well as some of the other peers of theirs that have siri exposure as well how concerned are you about the space and how big of a risk do you see given your purview into this space >> first i think the regional

banks are healthy. there's obviously some exposure at the banks the fed has been clear they want to cut rates i think it's a little bit early but maybe part of the logic is to cut rates to help lower borrowing costs for a number in the real estate space. when i look at nycb i think it's more of an isolated incident today. you look at the other regionals, fifth third, western alliance, there are a number of institutions that i think are sound and should prosper as the fed cuts rates down the road thinking about the systemic risk and where we stand, as an organization we are -- we don't have any legacy real estate exposure you look at the business, they have a niche in the way they invest capital, returns fantastic over the course of their 20 plus years. it's early i know you have a lot of different folks that come and sit on the show. you have to be really

thoughtful we have dabbled a little bit in office here recently at the rhythm level we're in a period of time when investing is, we'll see some of the greatest commercial real estate investing in our careers. you go back to the rtc days, going back to the early '90s, the.com period, go to the great financial crisis and out of covid i think you'll see attractive returns >> yesterday scott reckler joined us, raising a distress fund with airies, i'm sure you know you're doing similar things at sculptor when do you put the money to work now or do you wait a while. >> no. obviously you have to under write everything out there you look at what's going on, 2 trillion or so, a trillion five, two trillion of the wall of maturities coming up in the old days people would extend, the banks would extend

and real estate values weren't lower today real estate values are sub stanley lower. so i think we're starting to look at things, you know, we've done a little bit around small things as the banks write down some legacy exposures. they write that down they look to get it off the balance sheets that's going to create opportunities for folks in the real estate space. >> so you would be a buyer of the potentialed stressed loans on the these community banks. >> yes but again we have to be thoughtful here because there's a lot of workout to happen over the course of the next couple of years but we're engaged with our banking friends and continue to look with other developers around certain areas >> what about your overall m&a strategy it's rare, i remember when i first saw the headlines about

acquiring sculptor it's rare to see alternative asset managers combine because there are issues surrounding integration, ensuring performance that they're able to maintain a competitive edge in a larger organization how is the integration going i know you closed in the fourth quarter an and what's your acquisition strategy moving forward? >> so we've done a lot of -- one of the -- when we started this company back in 2013 at fortress, we raised all of our capital in the public market so we've gone from a billion of permanent capital to $7 billion today. when we looked at the sculptor deal, we didn't have the same capabilities at sculptor that we currently have today so we had a large reit, very focused on the residential housing sector, and the consumer sector, you had the sculptor business today, we have, you know, at the rithm level, we have $37 billion

of, and we should be a formidable player in the alt space. >> a lot of people termed it a as pedestrian returns. i don't think anybody was necessarily investing to knock the socks off the market but i do wonder about your ability to return aum given what has not been great performance >> last year, we had a great return i think it puts it at the top of the pack, relative to -- >> of course, not in line with the market, but yeah, not bad for a hedge fund >> no. the credit funds had a good year at the rithm level, we had a good year. we're in a growth mode we're stabilized, put up good returns for lps and shareholders from there, i think the aum is going to flow. as we have good returns, the aum will continue to grow, obviously. because it's going to compound >> shares are down 3.3% on today's earnings results, but we appreciate you being here and sharing your perspective on real estate and the alt space >> great, thank you. >> leslie, thank you michael, thanks to you as well

still to come, a look at the results sending ford shares higher and check out moves of s.n.a.p., down 34 percent after a revenue miss and light guide ceo evan spiegel will be on money ve nt uro morsexho t discuss. don't go anywhere.

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stocks are lifting higher right now. take a look at the s&p 500 we're up 0.7% and we have climbed. and we are approaching the 5,000 mark we've sur passed an intraday record high. kind of a quiet climb back to records. >> i was looking at the last time we got to 4k, which was the spring of '21. but 5k, s&p 5k, we've talked about it so much, will be a story. it comes amid market concentration, but i will point out that some 70% of the s&p is above the 100-day moving average, which some find constructive >> a lot of it is familiar names, david we have some earnings winners at top of the market, like chipotle, nphase energy is soaring right now. but you've also got megacap tech and s&p can't really get to records without it these days. meta, microsoft, nvidia, are all up >> you heard adam parker earlier on the show say that he believes that the trend will continue

that being the outperformance of those versus the broader market. but nvidia shares once again up, 1.3% i should also point out, another megacap at this point is eli lilly. we've talked so much about it, as you see, nvidia but eli lilly also up another 2.6% amgen has a potential drug, glp-1, but it does not appear in the early going to have the same efficacy in taerms terms of the overall weight loss as mounjaro. so lily shares down. >> we had a long conversation yesterday about sort of the analog between chips and ai and demand and you heard the adam parker a moment ago say, we're in the batters' box, not even in the first inning and the production of these drugs, which hasn't even gotten to the middle of the country where you could argue obesity is at its most acute. >> the trends that capture the imagination of 2023 are working

again, seemingly, this year. ai, the obesity -- we thought this year was going to be different, because it was going to be a broadening out, but the russell 2000 is down for the year and has underperformed. and that was one of the big calls on the street, is that we were going to get small caps, because the economy is better, and the fed will be cutting race >> and we haven't gotten the rate cuts. >> no, they're getting pushed out. >> the russell is not performing as well. >> the economy is better >> but the s&p approaching 5,000. >> 5.4% is the gain overall for the s&p so far this year don't miss the ceos of zmasnap d hilton vearcoverage -- >> it's money movers >> -- continues after this umm... first word. - tonsillitis! - nostril! uh-uh... bill! uh-huh... - hip-hop! - limping! mmhmm! medical bills! uh-huh! - pancakes! - cash! who pays you cash when you have medical bills? grrr! no idea. [tapping] gap! the gap left by health insurance? who pays cash to help close that gap? aflac!

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hot dogs! fresh, warm hot dogs! before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. good wednesday morning welcome to "money movers." i'm carl quintanilla along with sara eisen a busy week of fed speak continues, as the street debates the path for the first rate cut. we're going to hear from fed governor coogler and boston fed president collins this hour. >> the stock story of the morning. s.n.a.p. shares plummeting. snap ceo evan spiegel joins us