people are realizing that cuts could take a little longer than they think, and that's finally in the data. >> we'll have you back, get more color on exactly what you're thinking. we got the gist of it. appreciate seeing you this morning on this, the day after, which was a movie. we were just talking about the super bowl. tired, tired. >> good-bye. time for "squawk on the street." >> join us tomorrow. "squawk on the street's" up right now. ♪ good monday 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. coming off our first s&p 5,000 close, up 14 of 15 weeks. key earnings all in the next few days. our road map begins with that super bowl comeback, the chiefs becoming the first

back-to-back nfl champs in 19 years. plus, as for the markets, we have the s&p closing above5,000 for the first time in history. investors are closely watching new inflation data, retail sales. we have 61 s&p 500 companies that will report earnings in the week ahead. the true cost of a.i. development. nvidia's ceo countering openai's $7 trillion fund-raising goal and the cost predictions that come along with it. we begin with the dawn of a new nfl dynasty, the kansas city chiefs delivering that overtime comeback win over the san francisco 49ers in super bowl lviii. third ring in five seasons. the big game also raking in an estimate $650 million in ad revenue. jim, you did call it on friday, but what a great game. >> i was right this year, which is very exciting. and i have to tell you that this is one of those games where there really were great friction in homes. they were people who just love

the romance, you know, the romance with the swifties, and the people who are revolted by it and wanted a change of pace. there was something exciting because there was true love and hatred. i mean, a lot of people just said, enough, enough. >> i know. yeah. people did feel like -- not necessarily that. good for them. it's wonderful. but more just, all right, i mean, mahomes is one of the greatest of all type. >> andy, andy. >> and andy. i was looking for a change. like, let the other guys win for a change. but the big winner, of course, the nfl. another season most likely. records. we talk about it all the time in terms of most viewed telecasts. obviously, the super bowl is certainly always that and probably the one thing we, as a nation, still participate in largely together. but the nfl is a property only

continues to add to its monumental success. >> i was with my kids in 32, 29, and there were a lot of people who felt this usher concert would be a throwback, what's the point? but to me, i was trying to figure out whether -- did apple unleash really great entertainment? this thing was just stopped trading. i'm watching and say, there's luda. holy cow. look. you're seeing people -- lil john, you know? >> alicia keyes. i'm sure everybody agrees with your assessment of it. >> come on. >> i'm a big -- >> alicia keyes? >> incredible talent, yes. >> thank you for that. >> you're welcome. >> thank you. i don't know. i mean, i think maybe you have to be a certain age, but i think it's apple's age. it's vision pro age. >> it's definitely people who are old enough to have some money now to buy a thing like that. >> i think it was a demographic

bonanza. >> add for the ads, you had a lot of celebrity humor. dunkin tops a lot of lists. we mentioned this going into the game. no u.s. automakers, but bmw walken. >> that was my favorite. i happen to be a big christopher walken -- there's someone at our table who might be able to imitate him because of the proximity of birth. >> we're both queens boys. the scene i want to do is from "pulp fiction," and i can't do it. it's the watch scene. >> the doritos ad. >> that was a good one. >> biden? the biden one? >> i don't remember. i don't know what. >> my personal favorite was microsoft's copilot. i thought -- >> i found, do you know that we immediately went to it? we were all watching it because we all do draftkings. >> there's a business tie-in, amazingly enough.

it would seem that microsoft has adopted copilot as most likely what will be the brand for consumers. forget bing, which, of course, was a fail originally as a search engine. >> i was on it. i said, summarize everything. >> they're going for copilot broadly. >> look at the age of these young people starting their own businesses, essentially. >> i thought that was great. >> yeah. >> first, i was trying to figure out, was it shopify? who is it that's really doing it? you may not be totally focused the moment that the ad comes on. how about who was terrible? >> that is a reflection of what would seem to be microsoft's decision to make that the brand that they will take to market for the consumer. >> temu. >> way too much temu. much too much. >> that kept coming up. i always go to the same party where, frankly, i can never hear the ads, but everybody would say, what is that? >> temu!

>> $250 worth of stuff arrived at her place because she's some sort of influencer, and all of it was part of the golf tournament. >> i looked at her like, do you use that? she looked at me like i insulted her. >> if president trump gets in, i have a bad feeling about temu. put a 60% tariff on that stuff, instead of a dollar, it's going to cost $1.60. >> it's the $800, though. everything under $800 is free. >> you just wait, mr. nato. your pro nato. he's pro nato. just kidding nato's a good thing. >> i got a lot of discussion over the weekend, of course, and still reverberating with some haley comments. the other element of this is going into next season when amazon will get a playoff game. >> yes. well, peacock got a playoff game. i went to that game. kansas city versus miami, a defining game. jassy came up with that friday

game. that was a great idea because you didn't shop. you just shopped on amazon. i ordered socks yesterday at 11:00. bingo, right before the game started. >> same-day. >> same day. same day. >> on sunday? >> on sunday. take that, whoever. >> what do we make of these headlines about big -- no significant sale by bezos in a few years now? >> i thought he was selling -- remember when i had him selling something, not as much as this, but i'm not sure. this is much more significant, and obviously, we did remark a number of times on the fact that he is now domiciled in florida, which certainly has tax advantages versus seattle. >> he seems to be enjoying himself. >> if he had been a seller there. >> he's enjoying himself. >> back in november with only sales. >> let's give a break. what happened to "the washington post"? >> still challenges. >> operational challenges. "the washington post" sitill costs some money. he still can find that in his

couch, what it costs for that. this is a lot. 12 million shares or more. >> didn't even hurt the stock. what are you worried about? >> why would it? he does this every so often. he's allowed. >> i think that the ads represent this great cross section of what the -- the autos is definitely right, because they're hurting, i think. beer coming back. >> michelob messi. >> i know president trump made some deal to, you know, they came to him on bud light. that was a cross-cultural thing. >> dana white implored him to reverse what had been a previous post, and he did and came out very favorably as anheuser-busch tries to deal with this incredible loss of market share earlier last year, and you saw it reflected in some of the ad choices they're making now. >> i was with ben and jeff marks for the club today, and i said, when do we have to just think about trump pretty regularly

when it comes to the market? and i'm of the opinion, now. when you say things like he did for nato, great implications, but a 60% tariff ends china. it just ends china. $500 billion worth of trade. >> well, it ends a lot of things, jim. >> but look what happened to steel. >> we still have fairly significantly intertwined supply chains. >> with batteries, definitely. i don't know. i think you have to start considering it just because it's such a radical -- i mean, i know that president trump used to tell me all the time, the dow is a great measurement of what i'm up to, but a lot of these things, we will have no relationship with china whatsoever. >> i well, for now, the market is, whatever you attribute it to, closing over 5,000 for the first time in history. 61 s&p companies report this week.

cpi tomorrow. jim, 14 to 15 weeks. haven't done that since '72. >> 1972, which, by the way, was a terrible time. i think it's interesting. we go back, the other comparison used to be '69. we had a good economy because of vietnam. '72, someone could say, oh, geez, what follows that is just a grave downturn. >> '72 was the last time what? >> we went 14 out of 15 up. >> okay. >> i just find this is one of those moments where you'll have a couple of bad quarters but not a lot. and then the bad quarters are viewed as being opportunities, like pepsico. that was a weak quarter. someone comes out and recommends it today, saying, hey, it's down enough. i'm troubled by the idea that all -- there were some fomo pieces. mike wilson -- remember mike? >> i certainly do. morgan stanley strategist. >> no longer on the investment committee. they took him off the investment committee. >> is that sotto voce you're

telling me this? >> he had a piece that was positive today, read positive. it was like a little defense, little like spags, great defender. it was positive, and i thought that was interesting. >> what was his positive thesis? would you mind sharing? >> cash flow looks good, earnings per share. >> has he backed away from what was a more negative view? >> i say, yes. i think he has backed away. and not because he -- because nobody's that transparent, but here it is, tadavid, and you kn i like to highlight. my wife bought me a hundred highlighters for my birthday. quality growth showing relative strength, balance sheet quality becoming more important. this guy has come out, second half readjustment, and just -- he shuts purdue down with this thing. this is purdue shutdown. >> i like to -- >> well, for 24 hours, we can

relate everything to the nfl. >> you said the pass rush would be key, although who knows what they could have done with more gainwell. >> yes, yes. but i have to tell you that when you have the adjustment that andy reid does, he did it to us last year. we were up by ten in the super bowl, and he just figures it out. pretty calm guy. imperturbable. >> great piece in the kansas city city star about getting yelled at by your tight end. >> yelled at? almost got pushed to the ground. >> doesn't really faze you. >> nothing fazes coach andy. >> the memes were pretty funny, all the memes of travis kelce. one was, "you told me to sell nvidia $300." >> did it really? he didn't give a big "mad money" shoutout at the press conference in the kansas city -- in the chiefs against miami. big shoutout. i think he said, i don't know, whether rice had "mad money" on. somebody had it on. what a guy. can i just tell you?

if anyone gets to meet him, he is like the -- he's a loved father of everyone on the team, okay? he treated my father as if it was his father. - nothing -- i have but incredibly positive things. amazing man. how much does it cost to develop a.i.? jensen huang responding to that report of sam altman seeking to raise $7 trillion. take a look at the premarket. some key names coming up in the next few days, including shopify and cisco and marriott and data dog. nu.n e re" aothstetin mite doug, ever since switching to workday you've been a real rock star. rock star? what do you know about rock stars? 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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nvidia's jensen huang speaking on a.i. overseas at the world government summit in dubai, stressing the need for every country to have its own a.i. infrastructure and countering sam altman's $7 trillion fund-raising goal for the fast-growing technology. >> while we're replacing the install base of general purpose

computing, remember that the performance of the architecture is going to be improving at the same time, so you can't assume just that you will buy more computers. you have to also assume that the computers are going to become faster, and therefore, the total amount that you need is not going to be as much. otherwise, the mathematics, if we just assume that computers never get any faster, you might come to the conclusion, we need 14 different planets and 3 different galaxies and, you know, 4 more suns to fuel all this. but obviously, computer architecture continues to advance. >> he's really been on this theme of sovereign a.i., jim, the last few weeks. >> i think there is something to be said that you don't want your country or your school system to be left behind. this is like jensen's law. moore's law, computer power basically doubled every two years but get cheaper. this is kind of what he's

saying. ben righteous has a great piece today about how it is one of those things where the unleashing of the total addressable market by amd, talking about lisa su, talking about how it's a $400 trillion market, made you feel like, well, wait a second, if it's that big, every country does have to have it. >> the hyperscalers, we know the demand there for nvidia's h-100s, h-200s, is enormous, but now you have demands from sovereigns as well. >> you think he was sell something. >> yes, he's selling. absolutely. uae, aren't they one of the large owners of global foundries? wasn't the old amd -- abu dhabi. they're building their own fabs there. i would assume he's selling. my understanding now, jim, and you would know more, is we think of datacenters still as sort of the hard drives, essentially,

just all in-house some place, but with nvidia linking everything together, it's a super computer, essentially. >> that's what -- exactly why arm doubled. arm is indeed at the center of them. you need the gpu and that's nvidia. and you need cpus alongside it. and that's arm. and i think people didn't understand how close arm is. rene haas, ceo, worked with jensen. jensen tried to buy the company, and if you look at that spike, what that says is people didn't understand the closeness of the relationship, so they got it wrong, and i think david -- i'm going to add what david said, because it's really important. there's very small float because softbank was locked up. >> yes, there's small float. there was certainly -- that was incredible, that 60% one-day move, roughly, but back to the overall thesis, though. i mean, so, he's selling super computers around the world, you know, the idea that you're a sovereign, you need this as well. we know how many fabs are going

to potentially be built. i don't know. do the inventories of these chips ever get too big? >> you always thought intel would supply the world. they had the x-86, and their whole goal was to make it so everybody could have a pc. but the one thing that i never thought of was that, well, does l lithuania need a.i.? mexico, a.i.? i guess, yeah, but countries aren't rich enough. countries aren't as rich as meta. countries aren't as rich as microsoft. >> they are in the region he's in right now. >> well, that's true. they can be -- oh, so you're saying, when he's at a place that can afford it, he's in sales mode? >> i think you're in sales mode everywhere. i'll tell you what got attention on friday was asml, amat, when we'll get this week, clack, lrcx

because of altman, the chips act awards, these comments by jensen. >> if i were denny's, which did not have an ad, i would have had the table where you create -- >> where he started nvidia? >> that's how. then people would say -- i think people are starting to recognize jensen. he's starting -- now, look, walter isaacson hasn't started the book yet. walter was great this morning. he's so good. >> he did look good, yes. we'll get cramer's "mad dash," countdown to the opening bell, one more look at futures as we kick off a jam-packed week. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternative, and responsible investing. all right, we'll get started with another week of trading, about three and a half minutes from now. two and a half minutes, actually. let's get to draftkings as your "mad dash." >> a lot of people were trying to figure out how to play,

whether you play an advertisement or not, will it impact the stock? i had e.l.f. on. there was an e.l.f. ad with judge judy, but the winner may be draftkings. draftkings has a new audience because of taylor swift, and you had a lot of women on dr draftkings, and there's fun stuff. who's going to have the first touchdown? who's going to come back from a ten-point decline? you know, who can make up the different prices? you know who made up things? bar stool. remember how barstool lost out. that deal -- >> they got money, and then they basically walked away and bought it back for nothing. >> noncompete -- didn't pen that. i think that was not a great marriage, but i thought portnoy killed it for them. i think barstool is the kind of outfit that's perfect for draftkings, because it get people to go to the site.

i think portnoy did well. i'm aware there was insider selling last week at draftkings, but i think draftkings was a winner, and i think draftkings is a winner again, and i think barstool is a winner, because what you want is attention. and this is a way to -- particularly for younger people to get the attention to go to draftkings. >> as we pointed out any number of times, draftkings, one of the few but certainly the most successful spacs. >> those were early spacs. >> that was really early, vertiv. draftkings was at the beginning of what became the bubble. >> exactly right. vertiv but best performer it had been in the s&p 500, would have been the best performer. it's not, but draftkings is a very exciting stock, as well as an exciting company, because as you get elections, and they allow you to bet, it does well. meantime, full disclosure, i had a fantasy show on draftkings, and they are very good at getting attention.

and nobody gets more attention than barstool. nobody. who liked, by the way, the halftime show. i thought that was really cool. >> let's get the opening bell here at the cnbc realtime exchange. at the big board, it's deutsche, celebrating black history month. at the nasdaq, it is etsy celebrating the recent launch of its gift mode which combines a.i. and human curation. >> did they somehow come up with cheese boards in return for the statue of liberty? >> we had josh on a week or two ago. they're definitely going to push the gift thing, jim. >> the stock has had a big decline, trying to bounce back. shopify, which also works for small business, reports, as you mentioned, this week, and they have had no such decline. i know they're from brooklyn, they're right down the block, and we pull for them because we don't have a lot of companies

from brooklyn. it did have this period where people just stopped giving, and it was very odd. it was kind of a post hangover of covid, people going out again, but anyone who uses etsy -- >> it did get a boost. probably had a person on the board. >> steinberg, very smart guy. >> it's backed off from there a little bit, but not much. >> the one that hasn't had any move yet, constellation. >> what about it? >> constellation brands. >> because elliott is involved there? >> my travel trust owns it. it's not been a great performer, and some people worry that beer is going to be too glp-1. it's tough to tell because diageo, you know, casa migos was down. that was the hottest liquor in the world. tequila now, damp january hurt these guys. >> oh, yes. >> you tweeted something about people aren't going to gyms. when are they doing? >> there's a piece on the tape

about january foot traffic in the ten largest gym chains being flat in a month where it's usually a quarter of your growth every year. >> that could be glp. it could be anything, david. it's lurking. >> it is lurking. >> kellanova. >> we had kellanova and hershey on last week. we asked both ceos. they said, no impact whatsoever that they see, and lane kpr kellanova indicated they spent a lot of time modeling it, and they said maybe it's a 1% hit to caloric intake. >> there's a lot of things that make it so that it is not necessarily accepted by your insurance company. but then the question is -- >> right now. but it's going to be widely used. come on. it's already widely used. they are most likely going to be the biggest drugs of all time. >> no one even talked about last week, they had the cirhossis of

the liver. >> it's not nash? nobody understood what you were talking about. >> that's nonalcoholic. had always been considered you shouldn't embrace something because people have hurt themselves with heavy drinking. they no longer distinguish that, which i think is fine, because look, people drink and therefore, they shouldn't be covered? what is that? >> meantime, this hershey downgrade at morgan stanley today. >> that was brutal. >> they mentioned, among the greatest exposures to glp-1 adoption in our coverage. >> i think there's going to be a backlash. at a certain point, what they're going to be -- i think they're going to see that people can eat a lot of stuff and not get fat, eat a lot of chocolate, like, hey. >> but i think it suppresses your appetite, so i don't think you do eat a lot. i have not been on it. i don't think anybody here has. >> it's a tonnage issue. >> it's tonnage? >> yes. it's tonnage. it's not like the old days, you need protein. i know that abbott is doing a

lot on protein shakes, because, you know, it's not enough protein. look, it's a game-changer. cocoa prices are up big. >> that is true. >> meanwhile, you do need to keep going to the gym because if you are on a glp-1, you lose muscle mass. >> protein for older people. makes them very frail. >> we'll be talking about this now, every day, and for years to come. >> it's a brand-new regime, and amgen didn't have what they thought they did, so it makes it so the moat is even bigger, and lilly is -- you have to have foundries. >> and novo. >> novo doesn't have enough money, but novo is real. >> spending all that money last week to buy the manufacturing. >> that was smart, but they're very checkered manufacturing abilities. >> yes. there were some questions there. but why are you questioning their ability at novo in terms of factories? >> you have to spend a fortune. insulin was their main drug.

and lilly cut the price of insulin, which therefore made it so that novo didn't have enough money, but main thing is expertise. you've got to build these factories really quickly, and then the pen, and whether or not you can have the pen, can have four shots in it or whether you have to develop four different pens, and if that's the case, then there's a pen shortage. >> do you want to do -- >> there is. >> gilead m&a. >> pen shortage? >> yes. i think we should do f.a.n.g. because i thought that endeavor was a talent agency. >> well, it is. it is. also owner of tko, controls that as well. but this is a prooifrt company called endeavor, which obviously has significant exposure in the permian. jim, you know more about it than i do. let me tell you about the deal itself. diamondback energy, the original f.a.n.g., by the way, is in a deal in which it's going to give

endeavor 117.3 million of its shares, and cash as well. i think it was $8 billion. >> why do they do the cash in stock? the $8 billion in cash? >> why not? why wouldn't you do it? you don't want it to be dilutive. >> no, but pioneer, exxon, they wanted exxon stock. >> it's all stock. >> i thought that was interesting. so is the chevron deal. all stock. >> gary sheffield -- scott sheffield, okay? one of the smartest guys ever, and what did he do? he took stock. >> he did. he did. >> all stock. >> this is a private company. there may be any number of different reasons why they wanted the cash. do you know this guy, autry stevens, who built endeavor? >> no, no. but diamondback is a terrific company. look at the stock. the stock is reacting very positively. >> reacting well to the deal. even though it is issuing a big number. >> and the $40 wti, that's $10

more than pioneer. all in. >> on a pro forma basis in 2025, this is what diamondback is talking about in terms of operational synergies being realized by 2025 for the combined company. >> it's good. >> they're talking about being able to generate oil production of 470 to 480 with a capital budget of 4.1 to $4.4 billion. i want to make sure. how do you express that? >> that's barrels of oil equivalent. what's interesting is if you put all these different deals together, we're not going to stop, carl, at 13.5. we're going to go to $15 million. these deals are all about more production. 15 million is certainly within -- the question is, do we have enough nat gas piping? of course, when we drill for oil, we also get nat gas, and we don't have enough, but it's interesting to see targa as being one of the best stocks.

they reported this week. s&p 4,000, s&p 5,000, targa is not top ten where they take the pipe and send it overseas. >> yes. >> that is -- remember, that is b one of the things that's happened in this country, and targa has been the wirn. we need more pipe, nat gas permian, if these guys are going to get to 16, 17 barrels. >> remarkable. that's on top of the most recent eia data that says we're back to 13. >> i'm just saying these companies are all about using fewer rigs to get more. the technology has come down in price. >> that's why the rig count on fridays? >> rig count means nothing. there is, like, a -- an equivalent where you get about 30% more with the new equipment for no money more, but one of the things that's battled these deals is that they all are going to be substantial lift from what they're producing now. the world needs oil.

we need very large -- we only have one port that can handle the very large crude carriers, but we'll have more of those, and pretty soon, we're going to be not just the biggest escort but the dominant player in the oil market. it's not reflected in the stocks or anything. >> kind of ties in with autos. a lot of news in the car front today. there's some price cuts at tesla. rivian, downgrade over at barclay's. this jonas note friday, jim, apologizing to toyota for ever doubting hybrids. quite a mea culpa out of morgan stanley on friday. >> look, jonas makes a lot of calls. some are going to be wrong. he always owns the wrong ones. he's a remarkable figure, jonas. remarkable. and look, i try to do -- compliance keeps us from doing something with him. imtd i wanted to do a fireside chat with him because i think he's the most forward-looking people in the industry. the restrictions on the sell-side make it so you can't really do a lot with them.

but jonas is one you want to, because he's so thoughtful. i think he's really terrific. >> guys, we talked about the deal, the oil deal. carl had mentioned gilead. i just got a press release. i mean doing the deal to acquire a company that i was unaware of. the symbol is cbay. gilead's paying $4.3 billion. that's the total equity value here, $32.50 a share. 27 or so percent premium to the close on friday. they have a drug right now to treat something called pbc, primary billiary colongitis. it's a colostatic liver disease mainly affecting women. they have an investigational oral selective drug that is

already gone through phase three and looks, i guess, as though it's effective, and hence, you' got gilead stepping in here. don't have a lot beyond there. i don't know if you do. >> they have the worst quarter of any of the -- >> gilead did. i can remember the day. if you go back on gilead, when it was one of the great -- when it was one of the great growth stocks as a result of its purchase of that company in princeton, new jersey, that 90-people pharma set. >> you and i -- >> which treated, obviously, liver disease. >> but the problem was -- >> you cured it. it wasn't a problem. >> it cured it. what you want is maintenance drugs. the world is divided. >> we're talking about that huge run-up there. there it is. >> look, moderna had the same problem. they got all this money in. moderna is -- they have struck out. >> was it hep-c?

>> yeah. >> but they continued, obviously, to focus on this area, and now we're working on this deal to hire this company which has that investigational product to treat liver disease. >> what do you think of all the incredible m&a in the space? all the big cats are just buying and buying. >> this is what you do. >> they have to. >> entrepreneurs, they focus -- they raise money around certain science. they start a company. they hope that they can get to phase two, maybe even a phase three, but they don't have sales forces or the ability to manage -- think don't have anything. >> it would bankrupt anybody. >> the whole plan is, let's sell it. you do have companies that are willing to step in after a favorable phase two. some like to wait for fies three, but that's where they take their shots now. you see this all the time. >> lilly's been doing a lot of it. >> for the most part, it's always one company representing the sellers, and that would be ser view partners. >> they need it so badly.

>> every single one of thieves deals. >> it's a sales force. a sales force is expensive. the price for a huge phase two, there's almost -- only big companies can do it. a little company just can't do it. it's too expensive. >> a lot of them get through phase two. they do. >> you can do -- the government lets you do it in australia, and the australian price for phase two is dramatically lower than the u.s. >> but again, you're in no way going to be able to commercialize these drugs in terms of actually having a sales force and marketing them and everything else that goes along with having a drug. >> pfizer stock, they've bought a ton of companies. >> they have -- i mean, we didn't talk about their advertising last night, fpfizer talking about science, particularly in cancer. >> seagen has got to work for them. it can work. they to have hard-to-solve cancers, and they have radically

different ways of doing it. they always have. the buy who runs bristol is from seagen, doing a trial of schizophrenia. do you know how hard that is? >> i get confused by charts. it says one year at the top, but it's a six-month chart, but that's showing what it's done for the year at the top. still adjusting. >> merck is keytruda, of course. greatest drug of our era. >> you're close to merck. >> is that a year chart? why does it start with "m"? why would that -- i don't know. >> there's the cowboys loss, the niners loss. cowboys loss was bad. >> football season is over now. are you going to stop? after tomorrow? >> i was all over schefter this morning. schefter thought it was terrific. >> what would the spring football league say? >> well, i don't know. we got to talk to president trump. >> you gushed all over the rock

about his spring football. you love it. you're the biggest fan there is. it's a great success, apparently, according to you. >> those guys play for dinner, which means if you're howie roseman, nice call for my boo birthday on saturday, that he's going to look at talent. that's a feeder. it's not the united states of georgia. although, that tight end is good from georgia. >> i have an original xfl football. >> do you really? >> yeah, an original one in my closet. i got it from one of the wwe people a long time ago. >> you may have give that back. >> no. it's a collectorer's item. i think. >> we're leaning on sports heavily. i don't know if you saw the fx keeps the tally of scripted series every year. they keep a count of how many new shows are scripted. 14% drop last year in an argument that the content bubble is bursting. >> actually,steve colbert

said -- his partner was saying, we got hospital shows and crime shows. there's a lot of cop shows. david, i don't know if you stayed up for "tracker." the game ended so late. a lot of these shows, like -- >> on what? >> does your ma watch them? i don't know anyone under 75 watches these shows. >> i don't know who watches them. >> they're all the same. it's about cops and fire. it's many set in chicago. and hospitals. >> it's no different than it was in the '60s and '70s. adam-12, emergency. >> nypd blue, some great cop shows. >> the donner party, and these guys have got to -- it's the same thing. nothing's changed. david, why is linear so -- david, why? >> why? why do cop shows work, david? "nypd blue," "hill street blues." >> that was back when tv was tv. >> it's not anymore?

i think the quality -- i wouldn't know. i don't watch these shows. >> i'm just saying that people have -- >> they have more choice. >> they found new bundles. how about the nfl waking up to the idea they're part of a bundle they didn't know about? >> that was a good "journal" piece. we related a number of the key elements of it, which is they hadn't talked to many people, and they hadn't approached, obviously, paramount or our parent company as well. there was a worry on antitrust, not to mention price. >> palo alto down badly. nikesh's birthday was saturday. >> you guys share. >> also bob iger, who, by the way, is doing a lot of interesting things with disney. disney plus had an advertisement. >> they did. disney's market cap is above $200 million for the first time in a while. >> i'm tired of the comparisons to netflix. >> they are starting to narrow a little bit. that gain. there was a long period of time that disney, obviously, had a

much larger market cap. next passed it, then they switched, and now netflix has been dominant. >> now we're watching nvidia, amazon just crossed. >> oh, my, really? get jassy on the phone. get that straightened out. >> i've got nvidia, $179 and amazon, $181. >> you should own, not trade nvidia. i have a great picture of me and jensen where he wrote it and it says, "cramer, own, don't buy." lot of niner fans there. sorry. >> with the leather jacket. "the new yorker" article. he's beginning to develop somewhat of an international -- >> i want everyone to read "the new yorker" article, especially when he was at that special school in kentucky, and everyone was beating him up, and he won all of them over. >> the denny, the myth, the legend, the creation. >> i don't want to violate confidences, but the stories of him are always the same, which is that he's unchanged. it is not impacted the way he leads his life.

not that i -- i've known him for some time, but that's my perspective. he's funnier. lisa thinks he's funny. >> when you're adding the equivalent of an intel every week. >> well, as he said to my wife, i had the biggest earnings, you know, biggest earnings surprise. >> up guidance in history? >> she said, what does that -- is that bad? >> he said, no, $5 billion better. she's, like, very not involved with us. you have stock? do you have some stock? >> yeah, he has a lot of stock. off slightly, but still holding, 5,000 on the s&p. dow is up 30. check bonds as well. as we said, bowman's this morning, barkin and kashkari this afternoon, along with inflation expectations from the new york fed in about an hour.

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trading. >> retail has had a quiet renaissance. we see the stocks perking up now. a terrific note in jpmorgan about lows saying lowe's will have a great quarter. they report march 1. i agree with this and home depot because a lot of the aisles of home depot have had amazing -- and they said the tracks, doing incredibly well. lumber doing well. i think this is a group, the next move up will be in this

group. >> that's going to be interesting on a week where we are going to get macro data on real est retail sales. >> fantastic. >> tonight? >> trane technologies. you would think this is the brother of jensen. that's how good it is. palo alto is down 6. this is crazy. the monday after the guy's birthday. that's an insult. i'm all over it. >> we look forward to tonight. >> congratulations andy who does run the show here. >> "mad money" 6:00 p.m. eastern time. we'll take a break and back in a couple minutes. a car is a car... is a spa. an office. hi! hello! a cinema. so automated. yes, the definition of a car changes...

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nine of the new york stock exchange. take a look at stocks here early action on monday. little changed for the s&p, largely a reflection in the weakness in technology. consumer discretionary, banks are up, industrials are up as well. the nasdaq is lagging behind. again, we're coming off of several very strong weeks. the nasdaq up 4.8% month to date. s&p about 3.75%. treasuries are starting the week, the trend towards higher yields and back off at 4.17 right now on the 10-year. the 2-year yield at 4.38. 30 minutes into the trading session. some movers we're watching a deal in the oil patch. diamondback energy to by endeavor energy in a mega shale deal. endeavor is the largest privately held oil and gas producer in the permian basin. shares of citigroup under

pressure. regulators have asked the bank for changes the way it measures default risks of its trading partners and found plan to improve internal oversight to be lacking. >> vf corp rallying. engaged capital has received the support of the founding family of vf corp for board seats and faster changes at the apparel maker. the stock has come off of a quarter that was really rough. perhaps catalyst here in the agreement that was made. guys, the key economic event of the week is going to be cpi. inflation out tomorrow. then we'll get ppi later in the week. the other one to watch is retail sales because it factors into gdp and also gives us a good gauge of whether consumers continue spending as they did in december as strongly in january with the weather issues. that's what we'll be watching along with a number of big earnings tomorrow. coke and marriott and shake

shack. we're trying to figure out how much the consumer is holding up amid these higher interest rates. one good chart that i thought would be nice to start the week as we're contemplating where cpi will go tomorrow, to show how high the fed funds rate is. the fed has raised interest rates over the last year and a half or so to 5.25% versus the inflation, the core pce we've seen. really good progress on core pce. that's in the orange line. fed funds rate is the blue line. it's why you have economists saying, including the fed, we're in restrictive policy. we're holding back the economy with inflation starting to had down and why the next move is likely to be a cut, whether it's in may or june. the fed kind of ruled out march, although there's still a little bit of odds in the market. here's a chart. it's a chart to watch into tomorrow, carl, where we expect the month over month numbers on inflation to go up a little bit,

0.2, 0.3%, but it should bring the yearly pace down. economists looking for 3.7% on core cpi tomorrow, which would be the lowest since april 2021. >> morgan stanley looking for a 3.7 number on core annual and looking for more relief in goods, used cars plays along and services moving sideways and the "journal" doesn't set off any alarm bells about any hawkish elements the print might give us. >> no. still sticky services is going to be the thing. always when you start the year you wonder what happens with prices. the bias towards an upside read on inflation, but it's not as big of a deal because the fed kind of took march off the table. they want to see that progress overall is continuing. powell keeps saying want to see good economic data continuing, not -- >> even if it's not as good. >> not necessarily better data on inflation. so that's the story. the thing is, the last mile is

always going to be the question mark. easy to get back down to 2%, the fed target, or stubbornly high? we're in those readings now where we made a lot of progress on inflation, but we're still wondering if it's going to go all the way back down with the economy performing so much better than expected. that's the key. >> continues to be the key. >> yeah. >> will be the key. what are your expectations for tomorrow? do you have anything to share? >> >> i think the bank forecasts are we're going to continue to see progress on the year over year rates and higher on the month over month rates. >> where is consensus? >> 0.3% increase and 3.7 on core, 3% on headline inflation year over year rate which is continued progress. if we get a 2 in front of it even better. there are signs demand is weakening. bank of america's consumer team

looked across all the earnings and the consumer discretionary and staples names and they tracked, you know, they charted, mentions of weaker demand it's rising. this is something i've been saying. we're not necessarily getting the same message from the earnings than we are from the very strong gdp numbers and strong jobs numbers. wage numbers. it's not a disaster. it's interesting that increasing number of companies are mentioning weaker demand. >> you have highlighted any number of them over the last couple weeks. >> right. >> conference calls. >> we have actual data on that. the fed speeches barkin is a voter at noon today and then we'll hear from kashkari again, we've heard from him a number of times lately. lori logan, the dallas fed president speaking on friday, the risks i'm seeing in the economy are becoming more in balance that jives with what we're hearing from companies. i think we need to take time to continue to look at the data. i'm not seeing any urgency to

make any additional adjustments at this time. even the more like hawks and doves, there are all kind of in the we need to have more confidence and patience on inflation. >> yeah. even the bofa credit card data, nice note out today, looking at the deceleration in january spend and seasonally adjusted nothing out of the ordinary, as such we view the data as better than expected. there's really an amazing environment in which doves and hawks can slice up data to make their arguments for now. >> absolutely. it's the demand and the question is how restrictive is the rate right now to the economy? that's what's being debated. it gets back to the old debate about where the neutral rate is, the start of where -- what rate doesn't hurt the economy and doesn't help the economy. those are all kind of live issues and live debates right now. the nabe, the last thing, the national association of business economists put out a survey this morning and an increasing number

of them say that fed is becoming too restrictive. i think it's 21%. majority still say they think policy is just right, but the number is moving up on the economists that say we're getting too restrictive and are going to hurt the economy. let's talk about what's means for markets major averages coming off the fifth straight week of gains. charles schwab investment strategist liz ann sonders joins us no now. how does the path for fed policy this year influence what you're telling your clients to do in the market? >> well, you know, they're in data dependent mode which means everybody, fed watchers and the market itself, is at the mercy of theincoming data and that's where short-term volatility could exist. they're just waiting to drip the information out to us slowly market watchers. that's why i think --

>> you're good. keep going. >> sorry. i had somebody in my ear. i thought carl was jumping in. >> it happens. >> i think that will continue to be a mover, which also suggests that relative to the dual mandate of the fed, you might not necessarily need to see a big outsized surprise, whether it's cpi or ppi or jobs data. just marginal that could change the perspective on what fed has to do. you know, even before the most recent fomc meeting we felt a start of rate cuts in march was premature and not supported by the backdrop of combination of labor market data and inflation data and i think and powell did emphasize this, i think the labor market data comes into sharper focus for the fed, and he said that in the press conference. not that they've now taken their eye off inflation, which was the key driver on the upside in terms of rates, but that that's a bigger part of the mix and the

decision making process will be associated with the labor market data. i think that we're all at the mercy of every week and what data it brings. >> but so far the bullish narrative that's driven stocks to record highs here has been besides ai beshgs economic data, continued mild inflation and the next move, whether it's in the middle of the year or first half of the year or the second is a cut. does that continue to be the predominant theme in the markets? >> well that's the -- >> the continued strength? >> that's a predominant theme, but mostly to the support of larger cap names. if you look at the indexes, yes, the s&p and nasdaq are far from all-time highs but look under the surface there's been this distribution, this corrective process going on under the surface which is not necessarily an unhealthy thing. you don't get a full picture of what the market is doing by just looking at the indexes. in fact, just year to date, the

average member maximum draw down within the nasdaq is 19%. that's almost bear market territory. 15% for the russell 2000. not let less than 10% for the s&p 500, but that just shows you that even though it's not just the mag seven anymore, there's dispersion there, you are still seeing that cap bias flatter, the cap weighted indexes, but the real story has been happening under the surface. >> liz ann, i wonder if you have thoughts about household balance sheets? we were talking about credit card spend. on friday morgan stanley issued this from their econ desk this cautionary note about buy now, pay later bears watching because of lending standards getting tighter and delinquencies creeping up, households start to take on more than they can handle. how much is on your radar? >> it is definitely on the radar, but i think when looking at households and the consumer, you can't use a monolithic lens.

that might have been the case when excess savings story was the rage and you had a massive amount of excess savings but that's been drained down the incumbent wage spectrum and why you're seeing that increase of buy now, pay later. we're starting to see pretty significant increase in delinquencies but more concentrated down the income spectrum in the subprime categories, whether for auto or credit card loans. so i think there's now the segment of the consumer that is weakening. even more broadly, you might not pick it up in a lagged metric like overall gdp, but you look at hours worked, which even in the face of very strong jobs numbers, particularly the most recent one, you still have that decline in hours worked. you already mentioned the nabe survey, suggesting that there is some weakening demand. i just don't think you can sort of paint the consumer with a broad brush. i think the weakness is starting to be felt, again, down the income spectrum in the subprime

categories. it bears watching in terms of the spread up the spectrum a bit. >> thank you. we'll leave it there on a monday morning. s&p going negative led by tech. nasdaq 100 negative as well. here's our road map for the hour, shares of community bank corp continue to rebound up more than 10% today. we'll get the pulse of regional banks from the ceo of one united bank. >> apple's ai app store plan. could this be a super cycle moment for the tech giant. a bullish note out today and we'll discuss it. good news for millennials and gen-z when it comes to gring owtheir wealth when "squawk on the street" continues after a short break.

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the banking supervisors are working with their banks to manage this risk, to identify it. i believe, you know, this will not end up, i hope and believe, it will not end up being a systemic risk of the banking system. >> secretary yellen last week discussing her expectation for additional bank stress from weakness in the real estate market. will it pose a larger risk to the banking system. joining us today kevin cohee ceo of oneunited bank. oneunited is the largest black owned bank in the country. good to have you. i'm sure you're aware the street is all about looking for signs of stress, but since you don't

have any commercial exposure i wonder how much of an insulation that is for you? >> resilience and adaptability are key to the banking sector now. the banking sector is going through a wholesale transformation as a result of technology, so we have a lot of things we have to do as institutions, including adopting things like artificial intelligence, which are credit code to the next generation of banking products. >> what would you say about outright loan demand? >> i would say it's increased slightly, so the good news is there are -- there is starting to be some demand for loans, but it's only slight at this point. we continue to be challenged by the interest rate environment we're in, which has, of course, dampened demand for loans, but as you know, there are so many different types of loans and the demand for different types of loans varies at different points

in the economy. a lot of the kind of things that we do on the consumer side, we continue to experience increased demand. >> tell us about what? like housing, i would imagine, is under pressure because of interest rates. you do residential, right? >> yeah. >> what's strong and what's not? >> some types of housing, but affordable housing there continues to be tremendous demand for affordable housing. to the extent that you're in a position to do, for example, multifamily loan, multifamily loans, there continues to be that demand because as you know, we have a housing shortage on certainly the affordable end. >> what about regulation? how do you feel about current -- you're not subjected to the rules that big banks are, but is that a headwind to business right now and profitability is

increasingly under pressure? >> of course. particularly if you're in a regulated industry like banking, but it also helps you to fortify your opportunity because your institution is supported by fdic insurance and since the regulation is the key to driving the banking business overall, and, of course, we would like to be regulated less. who wouldn't? but i think there's a good balance in the system, and as i said, we have to be careful not to get caught up in the sauce and worrying about the things, for example, things like the current interest rate environment and what you're going to do or what you're not going to do. what you better be thinking about is the big wave you face by the challenges technology creates in terms of how people want to receive banking services. so you have to go from a transformation of the community

banking model to what they would call a more financial technology model because people are not going to go stand in line, no matter how good your doughnuts are. they want to look at their phone and look at their computer and be able to engage with banking services. >> how have you transformed your business to meet that change in the way people bank? >> by doing exactly that. for example, we adopted ai long ago and that has to be an integral part of your business. we are part of the new generation of banks that has the ability to operate on a national basis and deliver services to people the way they want to receive them today. but we also are -- have the ability to create this new generation of banking products. as you probably know, banking is moving from utilitarian products like checking and savings accounts to products like our

product which helps you to build wealth. in our case what our product does, it allows a person to aggregate all their financial information as a starting point so you -- whether the information is in the bank or not we can bring it all together. for many people the first time they can really see their financial selves where they see what their assets are, revenues are, expenses are, the surplus is or even more importantly, how cash flows through their world. because information is spread all over the place, so people need it to be brought together and organized in a way where they can understand what happens. then you have to help them to be able to make better financial decisions. as you well know in the united states, we don't teach financial literacy. k through 12, we don't learn about financial literacy. a significant portion of our population makes bad decisions over and over again because of

lack of knowledge. >> yeah. >> that's where ai comes in. >> we talk about being under banked or nonbanked to a large degree for a big part of the country. we mentioned you're the largest black-owned bank and where you think we are right now in ensuring fairness in banking and trying to weed out racial bias in banking? >> well, of course we continue to face challenges of discrimination in our society. however, technology is creating, once again, this massive opportunity that will allay the challenges that we face from discrimination. technology opens up the whole mark market so, therefore, all of us have the ability to access banking services in ways that we never had access before. we were limited in the number of institutions that we could approach.

now you can just get on your computer and you have this wide range of opportunities which helps to overcome the challenges of individuals discriminating against you. it's a whole new world. we never have had the opportunities that we have today and we have to recognize those opportunities. as i said, don't get caught up in the sauce. what are interest rates doing right now and not doing and what's happening with loans today. you better be transforming your institution. you better be generating a whole new generation of products and services that can make people money. so when they're banking with you, the service you're delivering to them should be increasing their net worth. that's where -- what focus needs to be on. >> yeah. that's part of the promise of the long trend of productivity growing in this country, at least. thank you for that. kevin joining us from oneunited. appreciate it. >> thank you for having me.

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welcome back to "squawk on the street." markets are sitting around record highs and money is still pouring into etfs one reason why bob pisani is live in miami at the world's biggest etf conference. i'm already jealous, bob. >> you know, sorry you're not here, david. 78 degrees, and i'm not even wearing shoes. sorry about the snow up there, folks. we have 2,000 attendees descending on miami beach for the annual etf conference. the industry is huge now. it's $8 trillion in assets in the u.s. it needs money to keep growing and more interest. there's a lot of money going into active investing now. this has always been passive. now active. there's three hot topics everybody is around. the first one, bitcoin for

grandma. 10 spot bitcoin etf has launched in january. advisors are divided on how to proceed. the bulls say this is the first real product that the finance community can get behind. the bears are not convinced it has a strong use case and terrified the legal cases around bitcoin, sec chair gensler's warning any financial adviser recommending bitcoin would have to be mindful of the suitability requirements for clients. that means you get sued if you're not careful. next is the etf's overall equity investing beyond the magnificent seven. the investors have been throwing money at the round hill magnificent seven etf that launched last year, but it was a huge success at the end of this year. big inflows into other broader technology etfs but advisors are worried about concentration risks here and the discussions are centered on how to broaden out and invest in for individual

investors staying on the edge of the tech space. they're talking about investing in themes like quality and even momentum investing, qual is getting inflows, the quality etf out there. finally, the most important thing that we're seeing is artificial intelligence etfs. they've been around for a while and recaptured some interest. the problem is defining what investment in ai looks like and which companies rex pose -- are exposed to it. the financial advisory community is talking about it here. the emphasis on how advisors are using ai. there are panels demonstrating the ai tools that financial investors now can use, including how to generate financial podcasts with just snippets of your voice. i've seen it. it's amazing. generating content using chatgpt is out there in a world where a million people could generate a podcast on financial advice, how do you maintain value and keep the client. that's a hot topic right now. finally what's not here, china.

nothing. zip. international investing was a perennially hot topic, not this year. not a single panel on international or china because the investors are fleeing due to the increased political risks. if you look at what's hot, ex-china is a thing. ex-china etf had no inflows at all for several years and had significant inflows last year. no -- for several years under management and now has been getting significant inflows in the last few years. that changed in 2022. you see that moving up right there because we've seen other emerging markets doing very well. back to you. wish you were here. >> so do we, bob. transition lenses and all. thank you very much. bob pisani. appreciate it on the biggest trends in etf. still to come exclusive results of our cnbc retail survey. this is a good one on the consumer. a new note calling china iphone demand fears overblown and that apple is looking at a

super bowl moment when it comes to ai. the analyst behind the call, wedbush's dan ivess joins us next to explain. back in two. (grunting) at morgan stanley, old school hard work meets bold new thinking. (laughter) at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. you always got your mind on the green. not you. you! your business bank account with quickbooks money now earns 5% apy. (♪♪) that's how you business differently. intuit quickbooks.

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welcome back. i'm pippa stevens. secretary of defense lloyd austin is back in the hospital. according to doctors at walter reed, he was admitted last night to a critical care unit at the medical center after what they are calling an emergency bladder issue. according to the pentagon, he transferred his duties to deputy defense secretary kathleen hicks and both the joint chiefs and congress have been notified. closed-door hearings in the mar-a-lago classified documents case are under way in florida today. according to our nbc affiliate in west palm beach. the former president is expected to attend the hearings today involve access to evidence and how much can and should be

redacted. elon musk is denying accusation business ukraine that russian forces are using starlink terminals in occupied areas of the country. in a post on x musk says those reports are categorically false and to the best of the company's knowledge, no starlinks have been sold directly or indirectly to russia. sara, back to you. >> all right. thank you, pippa. we have fresh exclusive data on the health of the consumer. steve liesman here with the pulse. steve? >> hey, sara. after a strong holiday shopping season, looks like consumers took a bit of a break in january with the cnbc monitor, we use credit card data from affinity solutions it registered a modest decline. real estate sales, ex-auto and gas, down 0.2% versus a 0.4% gain in december and 0.7% in november. the core retail that takes out restaurants down 0.4% versus up

0.2%. the year over year increased. the january decline follows two strong months in the heart of the holiday season but it could challenge some of those strong gdp forecasts that are out there for this quarter of around 3%, especially if the weakness is repeated in february and subsequent months. the breakdown that we have. gas stations down 1.3% with the decline in prices, of course, furniture and home furnishings taking it on the chin down 1% with the slowdown in the housing market. food services and drink places down 0.7. it could have been hurt by nasty weather during the month. retailers all up okay. electronic and appliances looks the best of the bunch up 1.3%. here's the way the cnbc retail monitor track each other relative to the government data. forecasts looking for a 0.2 increase exauto and gas.

that comes on thursday and we'll see how that compares. depending on where january inflation numbers come in tomorrow this number could show that real consumer spending was flat or even negative in january. we'll watch to see this the beginning of the slowdown. everybody has been expecting, but hasn't come. it's only a modest decline from higher spending levels reached during the holiday season. no reason to panic yet, david. >> and could be weather related with the storms in january. my question is where are we or economists at this point in thinking about how much the economy is going to get hurt by tight monetary policy, lags and all those rate hikes and the loser financial conditions that we've seen -- ooseer financial conditions. i thought it was interesting we have forces working at once and why the data is holding up so well? >> yeah. sounds like push and pull. we expect the lags.

i think a lot of folks have given up on the lags. i mean the lags could come through the corporate channel with higher interest rates, but joe has an interesting note out showing how interest expense by corporations is actually down and even falling because of all the refinancials that happened during the pandemic and shortly after that while interest rates were low. so we have that really strong and surprising, sara, as you know, running consensus for a 3% gdp forecast this quarter. the fourth quarter was supposed to be the slowdown. this quarter was supposed to be the slowdown we're showing a little decline in consumer spending that may not have much of an effect on it. we'll have to wait and see, but it does not appear to be coming right away. >> steve, thank you. steve liesman. >> pleasure, david. let's turn now to apple. our next guest says fear about its business in china are overdone. he has supply chain checks to

show demand is stabilizing and believes the super bowl moment for apple will be the ai app store reveal this summer. he is none other than dan i have, wedbush security analyst joining us at post ine, outperform on the stock 250 price target. you come on a lot citing supply chain checks and the like. just like to know how accurate have they been in the past? you put a lot of credence in them to say business is stabilizes if not perhaps will grow next year in china? >> the last few years we've been more accurate than not relative to the demand environment we've seen. i think for this, there's a lot of noise in apple and i think even when you look at the last quarter, our call here is that you look at iphone demand in china, it's actually stabilized. we even think increasing from the lunar new year perspective. when i look at the supply chain checks we're not seeing major cuts. i think this is something as we go through the next few months it's going to prove that march

guidance in terms of cupertino is conservative and this is the lead up to ai, not just the app store, but memory perspective, we're hearing across the supply chain more and more memory which i believe is going to be ai coming into iphone -- >> back to china market share, we've heard a lot about renewed competition from huawei and certain stories that indicate the government is encouraging, if not telling employees not to own iphones. are those real or imagined, those potential headwinds? >> i'm not saying it's roses and champagne for apple in beijing, but we are seeing actually pretty strong from an install base perspective. 200 million iphones. and they've gained market share the last 18 months. our call here is you've got to -- the reason we put so much work into it, navigate the noise and the reason the stock is up from where it was after that

quarter is because street is recognizing the ai revolution is now coming to cupertino. when you look at the install base,.2 billion it's on the app store, the ai app store, coming in june, and ultimately ai, llms in terms of from a hardware perspective they're coming for iphone 16. >> it's going to show up in which parts in revenue monetization? services? >> the services, that's the golden goose. that's where we believe 5, 7 billion incrementally start per year. developers goil to apple and that's where they'll build generative ai. on the vision pro it's just a tip of the iceberg to what i view as the ai revolution now coming in apple. we talk about definitely been, of course, godfather of ai, jensen, nvidia, microsoft and redmond, but now, the ai, that party, will be coming to cupertino. are you a believer? one of your peers said the h

hardware alone, vision pro, 46 cents a share over the next five years. have you read those numbers? >> even in stores around the country right now, conversion for every ten demos, about three to four are purchasing from what we're seeing. just to put it in numbers we originally had 300,000 in terms of vision pro units for the year. now it's 600. it just speaks to go back to with air pods, originally everyone said crazy for them to do over 5, 10 million per year. 98 million at peak. it speaks to our view. we sit here for a year from now, besides nasdaq, 25, 30% up this year, but we're going to see apple at a $4 trillion market cap along with its software peer. >> to come back one more time, co-pilot is out there. microsoft made a pitch to consumers on the super bowl last night. we, obviously, know as well openai and chatgpt. how is this going to distinguish itself when apple finally gets

to this party? >> the monetization right now is the enterprise. we'll see that from the godfather of ai jensen next week. look at microsoft, we think it's 60% of the install base that's going to ultimately go after co-pilot. look at messi of ai and palantir as well, the consumer piece, apple, that's going to be the next piece. 24, 25, we're going to look back at this moment as the start of a renaissance of growth from cook and company in cupertino. >> palantir is messy? >> we call him the messi of ai. >> and jensen the godfather? >> tim cook have a nickname? >> just -- >> tim cook doesn't need a name. cook, he continues to be the hall of fame ceo that navigates apple we believe into a $4 trillion market cap. >> thanks as always. still to come this morning, some good news for millennials and gen-z investors when it comes to growing their wealth and jeff bezos making his first major stock sale in amazon in about three years.

a couplebillion dollars worth. he may not be done. we'll get details on that after a break.

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. welcome back to "squawk on the street." despite all the headlines and millennials and gen-z falling behind, turns out their cumulative wealth is soaring. robert frank here with new details. good morning, robert. >> good morning, sara. good to see you. americans under 40 saw their wealth increase by 80% since 2019. that compares with growth of just 10% for those between 40 and 54. 30% for those over 55. the main reason here is stocks. those under 40 saw the value of their financial assets increase by 50% since 2019. that compares with just a 20% increase for those over 55. along with rising stock prices, young investors also shifted more of their money into stock. the share of their financial assets held in stocks went from 18 to 25%. that was the biggest increase of any generation.

but those under 40 still have a lot of catching up to do. their totally wealth is only about a third of the wealth for those aged 40 to 55. guys, golden hands seem to have paid off for now. >> you have to sell some stock, which what do you make of these bezos sales? >> so he filed plan to sell 50 million shares. he filed that plan last week. those will be sold over the next 12 months. this is the first 12 million of that 50 million shares. the 12 million set? ing him about $2 billion over the course of the next year he will sell $8.7 billion of shares at today's price. now, that's if amazon stays flat. it's probably going to go up in value. by the way, because he moved to miami, he's going to save, i calculated, over $600 million in taxes over the life of this sale plan just because miami, florida, has no personal income tax. seattle has that capital gains

tax. >> move to miami too if i could save $600 million. >> seat ctle could have done a t with that. not going to have it. >> thanks. robert frank joining us there. >> still a lot to come. a lot of a-listers of the super bowl last night including tesla's elon musk with his son and nfl super agent drew rosenhaus was in vegas to watch the chiefs become champs again. the other big winners last night's game. stocks hanging on to mild gains. s&p 5030. back in a minute. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip?

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patrick mahomes led a game-winning drive for kansas for kansas city, clinching their fifth and his third super bowl mvp. the chiefs are the first back-to-back super bowl winners in nearly 20 years since the '04-05 patriots. drew rosenhaus joins us. when you think about the quality of the game, the match-ups, the story lines, the back and forth, the lack of penalties overall, would you put this in the upper

echelon of super bowls? >> without a doubt. it wasn't one of the highest scoring games but it was close throughout. you obviously had so many great story lines, you had taylor swift in there, great halftime show, overtime game. it had everything. that's the way the season went. now you have mahomes, who's the ultimate superstar, who at only 28 years old, has three championships. i mean, this guy looks unstoppable. you got to think he's got four to go to catch tom braidy. you have to think he's going to eclipse that and only 28 years old, i call him the mini g.o.a.t. brady is still the big g.o.a.t., but mahomes, the mini g.o.a.t., is on his way. back-to-back super bowls. this team is really good on defense, so well coached by hall of famer andy reid.

what an amazing accomplishment and credit to the niners. they played their heart out. they played a great football game. they gave the chiefs everything they could handle and certainly were very gaming this outcome. >> do you think a three-peat is likely? is it something the league, you think, would appreciate or do you think they want to see overall league parity, spread the wealth, that kind of thing? >> i definitely think the think the chiefs are a dynasty now and a three-peat is possible. you just can't bet against mahomes. he can do it all. he can do it with his arms, his legs, he's a clutch player, he makes the big plays when he needs to and he's the best player in the nfl right now. with apologies to lamar jackson, the mvp of this league is patrick mahomes. they can do it again.

expect the 49ers to have a very similar squad next year, but injuries and unpredictabilities can change in the nfl. even though the chiefs won it this year back-to-back, they almost didn't make the playoffs. at one time they were on a losing streak. they lost to the raiders. i mean, this is -- at home they lost to the raiders. as late as christmas day. this was the year to knock the chiefs out and mahomes was just too good. >> it's why mahomes makes $33.4 million in the 2023 season. brock purdy apparently made around $900,000. it's one of the more interesting threads of the super bowl, the david and goliath of the super bowl. how much do you think he'll make which his contract renews in '25? >> mahomes or purdy? >> purdy. seems like he's going to get the

bigger increase. >> without a doubt. without a doubt. the reason i ask this, you could make the argument that mahomes deserves a new contract. he's not close to being in the highest paid player in the nfl on a per year basis. going back to purdy, of course, he's going to get a huge raise. he's going to become one of the highest paid quarterbacks in the game, if he keeps this up. he's eligible for a new deal after next season. what he's done is the last pick of the draft as a seventh round pick as mr. irrelevant is unprecedented. he played very well. the difference was that on the key plays, on the third downs, instead of converting and scoring touchdowns, unfortunately, they weren't able to do that, the niners. unfortunately for purdy. they had to settle for field goals. you're not going to beat mahomes settling for field goals. >> drew, we got to have you back soon to talk about skinny sports bundles and international

expansion and the big tech deep pockets. for now, appreciate you helping us celebrate last night's game. it was a blast. good to see you. >> you bet. it was a great game. take care, guys. >> all right. we've got the broader market, the s&p at fresh record highs, driven by, what else, shares of nvidia, for example. now $1.82 billion it has surpassed amazon's market value by about $2 billion at this moment. up some 2.5% is nvidia. again, the nasdaq composite, as you see, is the best performer on the board so far. we got a lot more live market coverage for you straight ahead. t migraine attacks, all in one. don't take if allergic to nurtec. allergic reactions can occur, even days after using. most common side effects were nausea, indigestion, and stomach pain. ask about nurtec odt. did you ever worry we wouldn't get to enjoy this? [jeff laughs maniacally] (inner monologue) seriously, look at these guys. they are playing great.

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good monday morning. welcome to "money movers." i'm carl quintanilla with sara eisen. breaking news out of the new york fed. for that we'll get to steve liesman. hey, steve. >> yeah. new york fed consumer expectations year ahead of inflation expectations falling for all goods tracked in the survey. that's happened w