from a higher interest rate environment which will further facilitate the fed's plan to lower interest rates this year. >> brenda, thank you for your insights looking at this news crossing the wire, just to repeat where we are in the markets. the dow which was down 50 points, now down 343 points, s&p 500 looking to open off about 61 points. the nasdaq looking to open off 291 points. we can do one of those games where you try to figure out -- >> does it come back or get worse? >> guess what? you all get to find out. we'll talk about it tomorrow. make sure to join us then. "squawk on the street" begins now. good tuesday morning. welcome to "squawk on the street." i'm carl quintailla. cramer joining us from philadelphia. futures are tumbling. a rash of weak guidance from

companies like marriott and hasbro. latest inflation print core cpi hotter than expected. big expectations. >> we'll talk chips and the ai frenzy. nvidia has overtaken amazon when it comes to overall market value. it was a big ratings win for sunday's big nfl game. it was called the super bowl and it easily shattered viewership records. >> let's get to this morning's cpi number. as we said, hotter than expected. everybody talking about shelter 6/10. that's two-thirds of it right there. >> we toned use the number 8 million aliens, illegal aliens, legal aliens, immigrants, whatever you want to call them. i think they've been a major sourceof rent increase because we have to shelter everybody. the cost of sheltering is going up because we've had a big burgeoning in population. we just don't talk about it.

i think we should talk about it because it's something that is vital to make sure we're a civilized country. we right now have to put people in homes and in apartments. we have no choice. i think that's moving up shelter. >> kind of ties in with what cbo said the other day about immigration, jim, and that's that the economy will be $7 billion bigger because of the people we're letting into the country. >> look, these are undocumented immigrants. i do not share the negativity about this, by the way. we have such a shortage of workers. i think if we adopt a humane approach and also legislation in washington, we will be able to make it so everybody is productive. in the interim, we have to shelter people. i think that this big influx of undocumented immigrants and documented has made it so we have no choice but have rents go up. i think home prices will not go up as much. again, i want to emphasize, i'm not in a camp which says this is something bad that we have to

take care of. i think it's something that, if we address, we can make it a positive. carl. i'm not as negative as everybody else is about this because i think the number can come down. >> meantime, david. apparel got help down .7. gasoline was a help, used cars. then auto insurance -- >> auto insurance was one of the gig guest as well. we all experienced the sticker shock of that, not to mention home insurance which i'm not sure is a part of it which is going up dramatically across the board. jim, it certainly seems to be dem finishing the market's hopes for a rate cut any time soon. i think the chances now for a rate cut in may -- we don't even talk about marney longer, of course. when we came into this year that seemed to be still on the table as far as the market was concerned. what are your thoughts when it comes to potential -- not to mention our conversation from last week which is not a hard landing, not a soft landing, but no landing. >> you almost said rate hike.

you cut it at the last minute, called it the rate cut. the economy is strong. there's a huge amount of money coming in from infrastructure. we're vgs a hard time finding workers, whether it be engineering, construction. housing is much stronger because mortgage rates drop. the rent number is not good. the food and home number, i find it hard to believe given the fact that walmart and costco have held the line on food. we had coca-cola this morning, that is a calm number. we had molson. that is up, the numbers are up there. that has to do with problems with bud light. i just think in the end, if we're going to measure everything on rent, we'll start to believe there will never be rate cuts, and that's not true. you know i felt may shouldn't be on the table because i just don't see any weakness in commerce in this country. we don't have -- we do not have price increases like we had, but we don't have a cessation of price increases. those looking for that will be

disappointed. >> okay. so an appropriate market response then thus far this morning? obviously we'll see how we open 26 minutes from now. >> yeah, i think so. i think we've been inappropriate most of the year. there are so many people thinking soft landing, so many people felt there could be a march. people put march, they put may. they never look at the actual numbers. there are enough numbers in the cpi that are not the way they want to go. i think jay powell has been correct by saying let's wait and see. a wait and see number says, look, we would like to see rents come down. people have to have food, have to have shelter. food and shelter were not in this report. we've got a big influx of people. i don't know why a big influx of people would ever be considered negative or keep rents the same. that is a rental group. i just think that they're not talked about because -- i don't know how it became taboo to talk

about all the people that come in. it's necessary to calculate what they've done with rent, it's obviously substantial. >> you mentioned food away from home up .5. that's another big jump. the other day we had pepsi pricing, quarter after quarter of double-digit. still up nine in the most recent print. james quincey of coke today talked about their quarter. take a listen. >> another important factor to highlight is the inflationary pressures which are moderating or stabilizing across most of our markets. to keep consumers in our franchise we're leveraging oto taylor or offerings. in north america and europe while inflation is moderating -- it's pressuring certain consumer segments o e oh throughout 2023 we increased our affordability offerings and won valium and value sharing in both regions.

>> we'll talk to james quincey in the next hour, jim. like pepsi, negative volume in north america. >> i spoke to ken this morning. i mentioned, what areyou thinking about president biden's shrinkflation? there's inflation throughout the food chien. why should coca-cola hold the line? i came back and said i understand that. cost co which has been holding the line on everybody never was able to develop a kirkland signature carbonation cola to rival coke. they've been able to take everyone else down. that's the one category they can't. that's because it's such a strong brand. that said, the stock has been stalled, and i still think the consumer packaged goods group is not a great group to be because if they put through price increases we see that the customer balks. by the way, mcdonald's talked

about price increases and the customer balking. there are a considerable amount of people making 40,000 to 100,000 who are on the fence about spending and would rather make things at home. at home is still cheaper, of course, than going out. >> yeah, although i don't know where supermarket prices stand right now. >> you mean many general? to buy like a grapefruit or something? >> did we get in the inflation report any idea exactly in terms of what things on the shelves and super markets are growing up. >> not that granular, david. aisle 7 is insane. go check aisle 7. >> we'll get to it later on albertsons and some of the promises they continue to make in terms of -- kroger i should say in terms of the acquisition of albertsons. carl, we can talk about that a bit later we begin with arm holdings up 30% in the session on monday,

extending the post earnings rally into a second week. shares taking a breather so far in the premarket. we'll watch nvidia briefly passing amazon as we said yesterday in market valuation during monday's session for the title of america's fourth most valuable company. jim, today lattice with a pretty weak sales guide. how much of a rest is deserved here if any? >> i think there's a belief developing, whether it be aris sta, cadence design, lattice that there's an air poshth, a sly down. digestion is a word people use. too much equipment ordered. this is the new negative thesis that started developing yesterday. it will continue today. i think arm, i said last night, one of my favorite stocks. obviously a short squeeze that david applied the other day because 90% is locked up. as much as 93. you look at the core tenets they put it in. i said, look, those who want to buy nvidia, you'll get a better opportunity than right now. let this air pocket thesis play

out. i don't see it. i think there's strong demand for ai. david, you know arm holdings, when it was at 160 yesterday, was not a naturalthing. that was just the market mechanics breaking down. >> without a doubt. i think that's been the case since the company did report better-than-expected guidance certainly, and did engender a great deal of optimism about its future. that's all fair. to your point and you just said it, 9.5% of the actual shares trade. it's roughly 90% controlled by their larger single shareholder by far, softbank, which they're marking up their position, things are looking good for them. this is a company that came public, to remind people, at 51 bucks a share. to jim's point, it hit almost 160 bucks yesterday on what appears to be certainly the optimism coupled with the course of float that is very small and a large potential short position in there, jim, that has sent this thing up dramatically.

i don't know, though. sometimes these things hang in there a lot longer than you think. the lockup expires on march 12th. now, i've asked renee, you've asked as well. i remember talking to massa about it when the company went public oovps. he said i want to keep as much as pos as long as possible. >> right. that's kept what i think you and i thought was natural, which is an accelerated end of the lockup in order to be able to meet demand and not have the crazy frenzied trading that i think makes people say this stoshth is not a place i want to put my money. i think rene did a great job. possible the stocks should be as high as 80, maybe even 85. i don't know how i get higher than 85, but people took it using market orders to a level that is very similar to what we saw when market orders were used in 1999 to 2000 because there were people new to the market.

carl, the stock is radically overvalued as much as i think is terrific. if it were 80, 85, that would be such a success from where the deal came, but i can't get to this price. i think it will knock down the cohort for no other reason than there wasn't enough float when it became public, not unlike 1999, 2000 when stock went to a premium and worked its way down. it's a shame. it's not a crime. it's a shame they did this. it's not rigged, but it created something that renee is going to have to deal with. it's a shame. he delivered a fantastic quarter. now he has to deal with the $160 price we got yesterday. >> i don't know if it's a shame, jim. >> why? people lost a lot of money yesterday david. people bought market orders and were down bigby the end of the day. >> that's shame on them, not on rene. >> shame on them, unforced

error, absolutely. nvidia, a couple firms upping target. zoo hoe takes it from 45% to 62%. i think 920 there, 850 at ubs. we talked about the two big tests for the market this month, one was today, cpi, the next will be their earnings. >> what a great opportunity for nvidia to come down a little. i think the quarter will be good. the companies that raise and raise and raise, if they get a number next week better than in line, these people have to say, wait, i'd wait. it reports february 21. i ex-expect a good quarter. as the stock goes higher, it makes it more of a high wire act. again, unfair? i don't know. the expectations are so high now it makes it very difficult for the company to realize. >> i would point out, guys, to sort of wrap up this part of the

conversation, there was a decidedly negative i guess piece in the "wall street journal" about copilot from microsoft. i assume you saw that, jim. >> wasn't that something? >> offering a number of early users on the enterprise level and just saying, yeah, it's good for some things, but not as productive as we thought, at least in the early going. there are some hallucinations. it seems like it's good to summarize a meeting. i was surprised to some extent as to how mediocre at least these early re views seem. you wonder whether it's going to have any impact. >> i totally agree. we've been trying various forms of it. i don't want to call it disappointing because i'm not doing some of the stuff that i think microsoft expected. i think it's a work in progress. we all expected everything to be perfect. there's a number of negative stories going around today, whether it be for ai, copilot.

i haven't heard anything negative on apple today. i'm waiting for that to come out. i do think we have to recognize that the markets had a big run and we're not being greeted with tremendous news today, whether it be from hasbro. carl, is this one of the days where the market needs to take a breather? nothing wrong with that. if people will panic out, good, we'll get the shakeout and make things even better. >> jim, we'll get to a lot of earnings we haven't hit today including weaker guidance, hasbro, vie general, marriott, avis, data dog and others. premarket, dollar, by the way, close to 105. that's going to take you back to mid november. more "squawk on the street" straight ahead. of my torso! one for you, one for you. oh, you're a messy one. cool, right? so cool. anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. 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. oh no, a rash. maybe it'll go away. awww, how am i going to find a doctor i'll actually like? is that a qr code? dr. stafford makes you feel at ease. thanks rash! you've got more options than you know. book now.

is it possible to count on my internet you've got more options like my customers count on me? it is with comcast business. keeping you up and running with 99.9% network reliability. and security that helps outsmart threats to your data. moaire dida twoo? your data, too. there's even round-the- clock customer support. so you can be there for your customers. hey billy, how you doin? with comcast business, reliability isn't just possible. thanks. it's happening. get started for $49.99 a month. plus, ask how to get up to a $1000 prepaid card with a qualifying internet package. don't wait, call and switch today! welcome back to "squawk on the street." new viewership numbers from super bowl lviii showed an estimated 123 million people watched the chiefs beat the 9ers in overtime making it the most

watched television program in history, jim. obviously you can throw some population growth numbers in there as well. just a stunning water cooler moment once again for american media. >> well, we had everything, didn't we? we had a very good contest right to the end. we had taylor swift. you know what, david? when we look at these great teams and we look at what's going on, i keep thinking of draftkings. i keep thinking of betting, of intra-game betting. i think a lot of what's happening is being fueled by people who want to bet throughout the game. it's so easy to do, maybe too easy some would say. i think betting has played a major role in ratings. >> so it will continue to in the future as well, not just for the super bowl, but across the board for the nfl you think? >> yeah. i don't know whether we'll have -- whether spring football will bring a lot of gambling. that will bring gambling.

i think the nba will bring some, baseball. it has to do with fourth quarter. if you're doing daily fantasy, you need to know what people are doing in the fourth quarter. there's 55 million people who have fantasy accounts. you can't play now in the playoffs. i think people recognize that. it was an exciting game. taylor swift is a force in herself. she's a nation stay. >> it may have been that cnbc priced at $7 million for 30 seconds may have priced low given the number they were delivering to advertisers. we talked to the ceo of paramount on friday prior to the big game. in part we talked about as well, even though it's seven, eight years away, how you compete if you're a paramount with the likes of amazon and apple when it comes to buying these sports rights, particularly something as expensive as the nfl. >> we have a great partnership

with the nfl, with roger, et cetera. that deal goes through the next decade. so it's through like 2032. it will be a while until we negotiate with them again, but it's a great partnership. they love us. again, we just said the viewing bar for cnbc since we last picked it up in 1998, we had the record divisional playoff game. so broadcast platforms, cnbc, continues to be extremely important to the nfl. all the leagues look at that. if they don't have broadcast, they'll regret it. >> they certainly were happy with that one, carl, when it comes to the level and number of viewers delivered for advertisers. >> meantime, great, great interview with john land graph of fx in the hollywood reporter yesterday. he was asked what was the moment that killed peak television. he said it was the moment that netflix decided to change their public facing wall street metric

from subs and arpu to metric. he said it put everyone else under a significant amount of dis distress. >> there you go. when i looked at bob bakish and his comments, you know if there were not a hard line anti-trust administration, that apple should just buy paramount. it's a lot cheaper than buying the nfl rights. you get kind of a sublet. you know what i mean? i can go on and on about who or whether anybody will buy paramount or even nai, but not right now, carl. >> jim, we'll get your mad dash as we count down to the eng llth tuesday. it will be a busy one after the cpi. dow looking to open lower by about 325 points. we're back in a moment. trading at schwab is now powered by ameritrade,

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.

that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy. my name's cody archie. and i'm erica. cody: and we're first generation ranchers from central texas. erica: and because of tiktok, we're able to show people from all over the world where their food and fiber come from. cody: we have dorper sheep and we have beef cattle for the sole purpose of going into the food chain. we use tiktok as a tool to inform people

of what we do and why we do it. there's just a plethora of knowledge and of information swapping going on there. tiktok is helping us protect this way of life for future generations. didn't quite get the two handle on year-on-year headline either, 3.1 versus the 2.9 estimate. the dollar, 104.75 will take you cko about november 14th. ten-year 4.26 will be the highs

of the year so far. opening bell coming up in just about 4.5 minutes.

icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot. you know when you have those moments? that time to reflect. to be like wow! what did i do to get here? (tense music) right. work. you worked hard and it's time for a bank that'll work hard for you. everbank performance savings is built to put your money to work with some of the highest rates in the country . going, got you where you want to be. we're the partners for your next move. everbank. advantage, you. ♪♪ we have great benefits from principal. so i know i'm taken care of.

and not just me. but the ones who matter most to me. ♪♪

all right. time for a relatively quick "mad dash." we'll have an opening bell very soon. shopify. >> i them on tonight. the numbers are fine. people are worried about the margin guidance for next quarter. i think it's little quiz cal. 13.6% is what we thought we'd get. we'll get high single digits. we have to drill down to that. that's the construction of the matter of why the stocks are going down. >> we don't know exactly what's behind that reduction in guidance or guidance as low as anticipated. >> they're spending more money. we have to find out why they're spending more money. this is the engine for small and medium-sized business that wants to be online. it's been a fantastic engine for the country. david, this day is a down day. we can make up any reason for stocks to go down. when you have a down day, everybody has a reason something is going. in this case we're saying it's the margins.

>> although, carl, that will be significant to clients should it maintain 30 seconds from now when we get started. >> let's get the opening bell and the cnbc realtime exchange. today at the big board, packaging company sunoco products celebrating its 125th anniversary at the nas dax and inspire therapeutics focus on the treatment of inflammatory bowel disease. we'll keep an eye on levels -- >> carl, interest rates are dramatically higher. people trying to figure out what's going on. february is not that great a month. we're taking a breather here. we've had really good quarters that did not happen today. no standout today. not saying, that is the nook -- [ cheers and applause ] >> you point out a lot of reasonsfor the market to go down today. one is the weaker guidance.

let's pick the first one, hasbro for example. >> the toy business is bad. i had mattel on. not as bad as hasbro. the toy business is just not that good a business right now. got to face up to it, other ways to be able to interest people. >> a big piece in "business week" earlier. i guess it was last week, jim, the u.s. birth rate was declining. that was even before covid. it's resulted in basically a price war battle in the diaper business and in the toy business. anything that involves parents buying stuff for their little kids. >> demographic issues occur. there's not much we can do about it. we do look at the cpi and whether it impacts that. toy prices are going down. people think toy prices could be part of the equation of inflation.

they're not. hasbro has been chronically undermanaged ever since mr. golder passed away. i think mattel is doing a much better bad. they admitted, look, things aren't that great. i wanted him to say things were great. he just wouldn't do it. maybe that's because at one point my father sold games. >> another miss in terms of guidance, jim, will be marriott. that's on top of the revenue miss this quarter. avis, similarly, revenue miss, ebitda business. revenue down 7%. >> everyone got too excited when they saw the american express number which, by the way, the stock is on fire. maybe not today. i think marriott has had a move of 25 points based on absolutely nothing. we know the rental car business is not good. david, you know we had numbers from hertz that make people feel that steve sure is not going to

be able to make sure that's a growth stock anymore. i think that's premature. things got a little too hot. david, when they get too hot, we embrace things like travel. let's take the stocks up, based on nothing other than what the last company said. when american express said things were good. it's not working except for tripadvisor. you know what that is, right? >> no. tell me. what is it? >> possible takeover bid. liberty trip advisor. >> i was thinking about expedia from last week, of course, on the same general area which, as our viewers know, reported numbers on guidance that was a bit below anticipated. i don't know if you saw the outgoing ceo joined the squawk group. >> it was a bummer. it was a bummer, david. do we have tape the tape was

really interesting. what do we have otherthan you and me talking. >> you were mentioning the number of names that focus on travel. >> airbnb was up huge yesterday. i mean huge. i search and i search and i search. why is that stock up five? the answer is it shouldn't be. it's down four. >> jim, something we haven't talked about in a while -- >> how about kroger? >> i want to talk about it. they put a press release out. the headline is kroger to lower prices following merger with albertsons. the press release here basically goes on to detail to a certain extent all the different times during their previous deals where they have consistently lowered prices they say and also improved the customer experience, investing more than 125 million to lower prices at harris teeter, more than 100,000 to lower prices at roun

difficults in 2016. also improving the shopping experience overall. you can see the quote here, one o of the quotes from the company. we're getting closer, jim. my understanding is by the end of the month we should hear from the ftc. let's call it late february, where they will make a decision as to whether they're going to challenge kroger's purchase of albertsons and as well the associated divest tour package which involves cns buying those divested as saets with what would seem to be a good deal of financial fire power behind it so they can compete. but jim, the preponderance of views is you're going to get a challenge from the ftc here, and then the question will be what can kroger prove in court in terms of where it has kept prices, where it has brought prices in the past and how competitive it is right now with the country's largest grosser being walmart. >> you mentioned a key thing.

you have costco, you have walmart. you think this is one of the markets where kroger dominates in each area? no. walmart and costco are way ahead of kroger. david, you mentioned a key thing. they're going to have to divest. the ftc historically, and justice, has hated when they die vest to a company that doesn't have the fire power to keep it alive. they've thought about it hard. they have a rile buyer. you should talk more about how that buyer can be competitive. >> cns buying the divested assets. the founder of that co-owns similar biotic. you have a lot of potential fire power behind it to be fair. that's what they would argue to your point, jim, that they will have the ability to represent a true competitor, so to speak, unlike what we saw -- what was it? with rite aid. >> they didn't let rite aid

merge and what happened? >> it went bankrupt. >> now they only have two. >> this becomes an overriding theme in terms of these very difficult industries, not to mention even our own where, well, if you don't allow a deal, what happens to the companies? to your company, do you just get to buy the assets at a bankruptcy at some point for some of these things? there are a number of people betting this deal is actually going to happen, jim. but again, most believe you're going to get that challenge from the ftc. we should find out a couple weeks from now. >> david, this begs the question. does a company have to merge to start having good customer service? >> i don't know. why? >> you said, listen, when we merge we intend to do better, for the customer going to do better. it sounds like when a company mergers, it's fantastic for us. what are they doing before the merger? >> in this case, in this press

release they talk about how they did invest capital in the stores themselves, additional capital to bring perhaps up to a higher level or higher standard those acquired assets, jim. >> i looked at all the ones that they merged, and it's absolutely true. they brought down prices. to the ftc -- they actually did bring down prices. the data is clear. so they should be -- i think it's going to be challenged. but when you look at the data, david, they were absolutely true to their word. that's why i looked at this thing -- i was trying to poke holes on it when rodney was on. you couldn't. you do better when they merge. >> we'll see what the ftc has to work. >> carl, worth taking a look at jetblue. arl carl icahn speaking board seats. speaking o of deals, the scuttled deal to try to acquire spirit failed as a result of

opposition from the doj. you can see, carl, in there, this is a blast from thepast, isn't it? it takes us back some 40 years when you remember icahn, one of -- look at him back then. twa. >> when he was running twa, yeah. remember he had those light bulb bonds? those were a real treat. the light bulbs of twa, they were the collateral to the bonds. thank you. >> i love that he's still out there. i love that he's still fighting. this may be a worthwhile fight, by the way, given management's missteps. that said, as i pointed out many times, if icahn had just held on to his shares in netflix and apple, you know, the profits would be enormous, would have been enormous, carl. there's something to be said for activism, perhaps in the case

here. you can see the positive response. we're talking a little over 2 billion market cap. >> you can see the one-year performance down 20-plus percent. arca airline index is up 7 or so. airlines getting a little more interesting. a lot of the back and forth on the sell side ratings involve sort of cash revenue management, cost management. today flight attendants from three different unions are going to picket in the u.s., in the u.k., in guam over wages. we'll keep an eye on that. >> right. the industry has become a little less investable. surprised they were making more money when we started hearing travel picked up. i just think once again we're back in a moment in time where they're just not that good investments. it's interesting people probably say, wait a second, every plane i'm in is full. boeing isn't making enough planes to be able to make it there are enough planes in service. it's just not working. there are other places to be.

i think jetblue doesn't represent great value here. it would represent great value if you're allowed to verge. the ftc and justice department are very much against airline mergers. that's where they really felt they dropped the ball during the obama administration. >> that's correct, allowing the big deal involving continental of course, right? that was one many people say perhaps should not have been allowed to go through. you can take a look, we're down on the broader averages. s&p about 1.3% right now. the nasdaq, as you might anticipate, given it has performed better is down some 1.8%, this on the higher cpi number than had been anticipated. take a look at bonds there. just a generally negative response. as you might anticipate, microsoft shores down 2%, meta 1.7%. even nvidia goes down every so often, some 2% decline there.

>> well, david, look at arista networks. they report a fer lengthily good quarter. some people think it wasn't good enough. the stock is down 14. we can play pin the tail on everything here. was a net weak? the stocks are down. let's find out why it was week? nothing really. let's talk about margins, some cautious moments during the conference call. i think the market is due for a pullback. exhibit a is what happened with arm because that showed you there's just something very wrong right now. people are too excited. >> it is interesting, jim. even the companies this morning that pretty much guided in line. shop is a good example. qsr is another good example. pretty much moderate guidance getting punished to the tune of 6 to 8%. >> i think qsr -- burger kiveng was pretty good, tim hortons was okay, popeye's all right. they're on tonight.

i think they did a good job. if you want to know what's really -- a tenor of the market up, one of the great blowouts this morning was molson/coors. the stock is down 96 cents. patrick doyle will have good things to say tonight. we'll have to let it return its course. there was nothing wrong with the restaurant brands number. we can create something to fit the thesis that today is a down day. >> you talked about apple a bit. a pretty constructive note out of bernstein, tony sag naki, speaking of inflation, up 100% on apple tv plus as he argues would bolster services revenue growth. i don't know, up by about a billion dollars. >> i thought it was good. but you know to be sure it's still not that good a story. i was thinking the guy actually -- actually was

changing his mind and is putting out a solid positive number about apple. he could not do that. apple was also down $2.30 yesterday. we have a market that says apple should go lower. microsoft is the copilot, not good. not much to huddle in today to protect -- let it come down. look at that chart, david. david, that is a head and shoulders that even you would say i've got to get out of the way. >> yes. that to me, the head and shoulders says get out of the way. as you know, i'm very astute when it comes to technical analysis. >> you pointed out the other day the nvidia cup and handle. >> i did, i pointed out the cup and handle. you said you're okay on the rsi. >> today it's bofa cup and handle which supports at 4800. >> can't they wait till tomorrow? what if they waited until

tomorrow and said nvidia is really good. they all have to come out today on a down day couldn't they have waited to see what the cpi was? you have people firing bullets and they're not hitting anything because of the cpi. i bet lilly is down. >> lilly was barely down. >> david, stop. okay. lilly -- there's a lot of talk about the pill, how the pill is almost ready. >> the pill is almost ready. >> it's 9:44. i'm calling it early. >> i'm going to end with the banks, guys, in particular. in the area of things i notice that might be worth a mention, brian moynihan runs bank of america. he's the company's chairman and ceo. he's also not going to leave brown university's board of directors. he's going to be the chancellor, just elected chancellor of the brown corporation, 22nd

chancellor. i just point id out because in the current day and age, particularly with a university such as brown which i don't think i'm going out there and say may have a somewhat progressive student body, that's going to be a big job, you'd imagine. you can run into all sorts of things that would take up a lot of your time. i just put it out there. there's a statement from moynihan. he's been on the board, by the way, been a trustee, now he's stepping up. again, he's going to be running that board of directors of the brown corporation, as they say. i can imagine there's a lot of things that will take up his time from that. >> what's the net interest margin of brown? >> actually a really cool note today out of wells, looking at the ways, jim, in which banks will use ai. mayo points out the vision is that ai will become second nature at banks like the internet, like email.

interestingly the big use case also have a, quote, human in the loop and perhaps will evolve to more activities that no longer need any human interaction. >> i think it's possible. i was on the phone to a company -- actually getting the apple vision pro. the apple vision pro, look, you're not really talking to a person, and then the person was so polite to me, it was a gift. engaged -- of course, it was not a person. boy, how well spoken. i wanted to talk about russian history with the thing. i probably would have done that. we have to understand they're getting very sophisticated. i'm in philadelphia right now. i could use a little artificial intelligence -- of course, generative ai with a philly accent that is not a human. that would be dynamite. they would be polite, wouldn't be angry when the eagles lose. they would be calm with a philadelphia accent. wow! >> are you buying a vision pro? >> yes, i am.

i got my face fitted for it, david, you got to keep going like this and like this and like this. then bingo. they only had a 5 and 5:30 appointments on sunday. you think i'm going to miss the pregame for that? no way. that's like brian moynihan becoming a chancellor of brown during a period when we're worried about the banks. >> yeah, an interesting choice on his part. >> why would he do that? >> looking forward to you being onset with your vision pro. you guys are early adopters. >> one of the 600k shipments that wedbush says they're going to move. >> they told me, look, we're not sure it's there. it's very busy. to me it was all the things anecdotally saying it's selling well. david, i wanted to be able to watch "society of snow" on it. that's a very up lifting movie about the rugby team in the andes. i suggest you read the book "alive" if you want the early

line on it. >> let me know how it is. >> that move spri is a must watch. wow, is it tough and sad. as we go to break -- >> netflix, the moment they started to make money. >> dow down 450 s&p 4950, vix 14.5. not much in the way of data after the cpi print. thursday is really the busiest day of the week with claims in retail sales and nahb. for now, the ten-year holding 4.26, holding pretty steady. back in a moment. sometimes, the lows of bipolar depression feel darkest before dawn. with caplyta, there's a chance to let in the lyte™. caplyta is proven to deliver significant relief across bipolar depression. unlike some medicines that only treat bipolar i, caplyta treats both bipolar i and ii depression.

and in clinical trials, movement disorders and weight gain were not common. call your doctor about sudden mood changes, behaviors, or suicidal thoughts. antidepressants may increase these risks in young adults. elderly dementia patients have increased risk of death or stroke. report fever, confusion, stiff or uncontrollable muscle movements which may be life threatening or permanent. these aren't all the serious side effects. caplyta can help you let in the lyte™. ask your doctor about caplyta. find savings and support at caplyta.com

the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com were you worried the wedding would be too much? nahhhh... (inner monologue) another destination wedding?? we just got back from her sister's in napa. who gets married in napa? my daughter. who gets married someplace more expensive? my other daughter. cancun! jamaica!! why can't they use my backyard!! with empower, we get all of our financial questions answered.

so we don't have to worry. can we get out of here? i thought you'd never ask. join 18 million americans and take control of your financial future with a real time dashboard and real life conversations. . not a good day to post a double miss. biogen did that on eps and revenue and guided in line full year 15 to $16. street is at 15.5. we'll watch that as all sectors now are red and the markets seem to be on pace for the worst day of the year so far. we'll get stop trading with jim in a moment.

(vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts.

you're probably not easily persuaded to switch mobile providers for your business. but what if we told you it's possible that comcast business mobile can save you up to 75% a year on your wireless bill versus the big three carriers? did we peak your interest? you can get two unlimited lines for just $30 each a month. there are no term contracts or line activation fees. and you can bring your own device. oh, and all on the most reliable 5g mobile network nationwide. wireless that works for you. it's not just possible, it's happening. eisai. let's get to jim and stop trading. >> cadence design, one of the best performing stock in the last ten years and a partner of nvidia, reported last night. they said that sales were going to be good, but the sales guidance is now going from 19 to

15 to 12. the analysts didn't like it. just so you know, from china, flat or down, china weakness has infected companies. couldn't sweat the program. i like the stock. >> jim, sounds like in terms of today's action, dow down 500, your strategy is just to be patient? >> yeah. look, cadence, the stock is off 8%. we need a shake out, carl. we need people -- it's been too easy and again i point to arm as a moment in time of over exuberance that has to be worked off. the arm situation was too much like 1999-was to. let that go into the rearview mirror and we will be fine. understand that that did indeed happen. it was a sign of wealth and enthusiasm. that's got to calm down. >> tonight? >> okay. we have restaurant brands. people didn't like the number. that's ridiculous. it was a great number.

the cpi is hot. people said we don't want it. we've got harley. look, shopify is a great example. shopify actually had really good numbers, and it's being crushed. you tell me whether e-commerce is going down. it's certainly not that stock, again, was up 7% coming in. i mean, the market was too hot. it's got to cool with the cpi. i'm not -- i'm not negative. it's got to cool. it's okay. look, david, let's go to aisle 8 of the supermarket and you'll know what i am talking about. you know how bad 8 is. >> sure. it's bad. >> we'll see you tonight. "mad money" 6:00 p.m. eastern time. when he come back, an exclusive with the ceo of coke on their results with 1 to 1.7% declines on the major indices. ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim:

our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly.

[disconcerting stomach gurgle] not again. maybe i should get this looked at? [suggestive stomach gurgle] zocdoc? [talkative stomach gurgle] you're right, i bet they deal with this all the time. dr. finley really puts you at ease. let's do it! you've got more options than you know. book now. the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com

good tuesday morning. welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla and david faber, live as always from post nine of the new york stock exchange. stocks, we have a selloff on our hands. s&p down 1.4%. every sector lower but if you look at what's getting hit the hardest, real estate, interest rate sensitive, technology, consumer discretionary, materials. they're all at the bottom of the pack today. consumer staples and health care, defensive are holding up the best. the nasdaq down 1.7%. we are seeing a pull back after steady five week of climb for the s&p and for the nasdaq why? we got a hotter read on inflation. take a look at the impact on the bond market where you're seeing it selloff and yields higher across the board. 10-year at 4.27. we've broken out where we've been. bigger move in the 2-year note

sensitive to fed policy for pushing 4.6%. 30 minutes into the trading session. here are big movers we're watching. shares of hasbro tumbling. the toymaker missing estimates, demand weakness in the toy industry weighing on revenue. shoppy beating revenue estimates, but the stock is falling after the e-commerce player expects higher operating expenses in the first quarter. the ceo will be on "mad money" to discuss that tonight. biogen under pressure after reporting a drop in earnings. sales slumping in the multiple sclerosis therapy. coca-cola, the beverage maker beating estimates thanks to higher prices, issuing a strong outlook on sales as well. ceo james quincey joins us in a cnbc exclusive in a few minutes from now. let's talk about this cpi number, which disappointed. it was a little bit stronger. on the headline number, the core number, the annual number.

let's just show you core cpi because we know the fed watches that closely. it strips out volatile food and energy and it was a surprise on the upside, up 0.4% on the month. you can see on the bar chart that's higher than where we've been in recent months. the headline cpi we wanted to site go below 3% on an annualized basis. it did not. it stayed at 3.1%. as far as core annual 3.9% is where it was last month. the expectations were for it to come down. one more chart here that shows you why this is problematic to the market and to the fed. the super core. we know that powell watches this. this is taking out food and energy and shelter, shelter has been problematic as well, so it's really a services metric of cpi and we saw a little bit of an acceleration leading some like apollo to wonder if the loser financial conditions we've seen in the market, i.e. expectations that the fed will

be cutting rates, is making it harder for inflation to come down and undoing some of the progress we've seen on inflation sparking it back up. it's a number that jives with, david, the stronger jobs number we've seen, higher wage number, prices paid in the ism we saw. we were wondering if that was an anomaly. an economy that's doing really well, it totally justifies the fed not wanting to cut in march. does it push them back past may into june or even july? >> what's on the other side of the ledger, though? you cited a number of reasons why you could say this economy is strong. >> yep. >> what are some of the things we're looking at that would help make the argument that it is weakening? >> people look at some of the more granular consumer data like credit card delinquency rates, auto delinquency rates are rising as well. there are pockets of the consumer that have been weak, namely in goods, that's where the disinflation has occurred. if you look at everything from

electronic stores to furniture stores to buying home goods stores that's all been weak as well. also the job market, while we've seen some strong numbers in the last few months, overall has been cooling from where we were. >> certainly given the announcements we foe focus on in terms of job cuts they seem to be piling up, with the backdrop of adding 353,000 jobs in the month of january. >> right. also wages. i mean wages is the key when it comes to inflation. and the inflation story. they were a little bit hotter in the last jobs report and that's -- adds to the fed evidence that they're going to need to see more evidence, which is what powell and the whole crew has been saying since the last meeting and today i think the market needs to see more evidence too. we always knew that last mile of inflation was going to be a little bit harder and stickier or maybe just keep coming down to strend and the market has waffled in that view and perhaps now we wonder if it's going to be harder. >> as you might expect, carl,

you're seeing a reaction particularly in those companies that might be sensitive to higher rates for a longer period of time, not just the banks but the companies that have levered balance sheets where the hope had been there be an ability to refinance debt at a lower rate than had been anticipated in the future. so that does seem to be an algorithm that plays out every time we get a hot print of some kind that would indicate rate cuts are not in the future. >> maybe the silver lining looking for one is the fact that nine straight months where wages are out pacing inflation, that's a tailwind for the consumer and probably not a big surprise after we got the new york fed data yesterday that percentage of households that see their financial situation improving in 12 months is the highest since september of 2020, second highest since covid began. >> really good for the purchasing power and the real incomes of americans, but when trying to fight inflation the administration and the fed, it makes you wonder if higher prices are here to stay because

people have more income. i just want to mention food, because i stripped out food to do core. food was problematic in the support too both in the grocery and away from home even more, rising away from home. both numbers were surprising. fk lif you look at food up 0.4%. categories like eggs, cheese, fresh vegetables. i don't know what's going on with tomatoes. nonalcoholic beverages. hot dogs. very strong month of price increases. instant coffee, sugar and sweets, condiments have an unusual rise on the onth. what i'm saying is it's not an environment where everything is deflating and some of the progress we've seen in places like food, went the other way. and that's what's going to be watched and going to be i think a little bit problematic. >> let's get the more perspective on this latest inflation read with former pimco chief economist adjunct

professor at georgetown paul mccauley joins us. great to have you. we're seeing commentary like it's a blip. we know the fed pays more attention to ce, where housing is a smaller component. what do you think? >> i think that's true, but it misses the big picture, which is that it's going to be difficult to get from 3% to 2% on inflation. call it the last mile. i don't think it's a huge problem for the economy, but it is a problem for those who are all dressed up for a big easing party this year. so i think the bottom line the fed's dot plot from december which penciled in three cuts this year is looking pretty good. i think the marketplace needs to quit fighting the fed and get in line with where the dot plot was in december, which i anticipate the fomc will roll in the march

meeting. >> you think fed credibility gets a notch up today, especially after you mentioned the dot plot, but also powell's comments on "60 minutes." >> yeah, i do. i think chair powell has been exquisite in how he's laid out the path to easing. he wants to be cautious. he wants to be careful. he wants to have more confidence that what we've seen over the last six months is going to endure for the next six months. so, yeah, i think chair powell is looking very good in his story telling today. >> another element i made here, just in terms of what surprised us to the upside in the cpi numbers, i mentioned food at home, that's grocery, food away from home at restaurants, shelter is a biggie, 0.6%. more than expected. transportation services, medical care services. why is the services sector

remaining so stubbornly high in terms of pricing and demand? >> well, a lot of services prices like insurance and forth, by definition, are going to be lagging because they're catching up with what happened in the past. so i think it's basically telling us that it's going to be a long slog further down, and the one that is bedevilling and we've talked about this before, is the homeowners' quibble in rent. it refuses to crack in line with new rents that we're seeing in the marketplace. i think all of us and the fed included, are frustrated with this, but it is reality and we have to live life on life's terms. >> that's on the fed. one part of inflation they were supposed to be able to control it's the housing market, because that's where the -- right? they raised rates, mortgage

rates, and we just haven't seen the kind of come down in prices for house prices or rent prices that you would expect. >> i think you can say it's on the fed only if you want to go back to them being too easy a couple years ago. where we are right now, i think, isn't on the fed. the fed doesn't own what homeowners' equivalent rent is going to be on any given month or quarter. it is the calculation, and again, it's bedevilling because we're seeing in the real world, new leases are disinflating, but we're not seeing it the prices for owner occupied homes. i would not blame the fed for homeowners' rent today. you can blame them, if you want to, i wouldn't, but blame them for what happened in '21. >> people were pointing out primary rent is the smallest

increase since august of 2021, but, of course, it's just one piece of it. paul, we'll be looking for your help more often, i think. good to see you, paul mccauley. >> thank you. >> by the way, don't miss the white house reaction to this morning's print when director lael brainard joins us next hour on "money movers." >> our road map for the rest of this hour. coca-cola beating earnings estimates thanks to higher prices. coke's ceo james quincey joins us to talk about the company's outlook. jetblue shares are soaring, this on news that activist investor carl icahn owns almost 10% of that airline. we'll take a closer look at what he sees in jetblue. >> nvidia getting more target hikes today. market cap closer to topping amazon. how high can it go from here? we'll talk to the number one chip analyst on the street when "squawk on the street" continues.

♪ coca-cola beating earnings estimates, higher prices and volume growth fueling results. coke did report lower volume in north america. chairman and ceo james quincey joins us now for a cnbc exclusive. welcome back, james. good to have you. >> good to hear from you again. >> so talk to us a little bit

about what's working there. the organic revenue growth of 12% in the quarter and your outlook for 4 to 5%, seemed to be better than wall street was expecting and you do have that mix of price and volume growth. what's happening? >> yeah. look, i think this is the cumulation of what we've been doing over the last number of years, really committing and reinvesting in our business. the marketing, the innovation, the execution with our partners, and building momentum through our business. actually the fourth quarter much like the whole year of 2023 and actually really the last five years, we've been driving really on a like to like basis at the top end of our growth algorithm and that barring a little bit of hyper inflation in countries is what we're looking at in '24. continued momentum and success. >> market particularly encouraged by the volume growth you saw this quarter up 2%. we did not see that across packaged foods or beverage companies. how did you achieve that, and are you confident that can

continue throughout the year? >> yeah. look, the 2% volume growth we got in the fourth quarter, 2% for the whole year, 2023. actually, 2% over the last five years. we clearly have part of our strategy of focusing on keeping people in our consumer franchise, growing the number of weekly plus consumers in our business, notwithstanding whether inflation goes up or down. we have very much a focus on that. the way we achieve it is not just marketing innovation but thoughtful ways of making sure consumers who are under purchasing power pressure have options that are much more affordable, whether it's on price points or the value of the pack so that we can keep them in the franchise and we believe that pays off in the long run. >> yeah. overall on pricing, i think you told me this morning that we're, aside from some hyper inflationary countries like argentina, back to normal pricing in beverages. what exactly does that look like and what does it mean? does it mean inflation is not a

problem anymore? we just got a hot cpi report. >> yeah. if you take the fourth quarter we reported a 9% price mix, bought couple points were intraquarter effects within the year. it was a life like 7. which half of that was hyper inflation in countries but the other 3.5% from the business. when you think about 95% of the business, 3.5 on a global basis is close to what we were getting prior to covid, prior to this inflation spike. a little bit less in the developed markets, a little bit more in the emerging markets, but getting into the ballpark. not too dissimilar from the cpi, coming from elevated levels, might be slightly harder to get from 3 to 2, but it's going close to the normalized levels, and that's what we see in 2024 a kind of a normalized level in the 95% of the business, with the overlay of some hyper inflation. >> normalized on a higher rate

than precovid when it comes to pricing? how much more are we paying for cans than a few years ago? >> the cost have gone through. if one looks at inflation over time, we very rarely get into periods of sustained deflation. that's not just a consumer effect. that's has supply chain effect. actually part of the reason that central banks set a 2% inflation target rather than 0, is so that they don't have lots of categories or areas of the economy falling into deflation. tends to produce negative consequences. once inflation comes through, it tends to stay at those new elevated levels. also wages, it's been good to see, they also came along with the inflation report, the wages have been outpacing inflation for a number of months now, so i think consumers are going to start to feel a little more money coming in than going out relative to pricing and that, we think, is going to start to see. we may start a little slower at the beginning of the year, but

we think momentum will build through the year, which is encouraging as we think about 2024. >> the biden administration has made a big deal about this shrinkflation, talked about it in the super bowl, which i know the food companies were doing much more in the last few years, but is that a strategy that you are taking, shrinking packaging size, sizes, to sort of cool consumers to get them to pay more? >> we would never want to fool consumers. we want our pricing and the value we offer to be clear. one of the differences with the beverage industry, actually certainly with our strategy, if you take coca-cola, it's available in a whole range of different pack sizes. i think the shrinkflation refers to the categories where they only sell one pack size so they have to move it up or down or the price. we have a broad range of packages, that's part of our strategy to make sure we have different offerings for

different occasions, for different out-of-pocket amounts. consumer can move between them as they desire, and that's much more the strategy we focus on, which allows us to grow the volume, keep people in the franchise but expand the business. >> we're showing right now the growth that you're expecting in 2024, the guidance that you gave. james, how do you factor going consumer? do you assume a soft landing? do you assume we're going to see continued weakness? what do you expect? >> you know, our general take is we're going to have some areas of tailwinds, where things will go well, economies like india are going to continue to do well, australia, a number of other markets going to do well. the u.s. maybe slightly will pick up through the year. overall in terms of there's going to be tailwinds and headwinds and things that we know will happen and some surprises. our focus has been on what we

can control to invest in our business so that we can have an all-weather strategy that plays through all these headwinds and tailwinds. we all know how up and down and crazy it's been over the last five years and that i think we have the right set of capability, we can manage what comes in front of us, through the things we can control. >> what about the middle east? are you seeing any pushback? we've seen that from other american brands like mcdonald's and starbucks and some of the restaurant companies especially, mondelez cited it too. do you see that with coke over there? >> yeah. the conflict in the middle east, certainly had an impact in a number of countries. those, obviously, in the conflict and nearby. we saw some of that in the fourth quarter. no doubt we'll see a little bit in the fourth quarter. i don't know how long that will go on. but in a way, that's, you know, obviously, tragic conflict, but it's one of the headwinds we face in our overall business and i think the aggregate question is how do we balance the

headwinds and the tailwinds, focus on what we can do and make sure we continue to invest in the momentum behind our business. >> what about the u.s. in particular? you spoke about global he demand. in the u.s. we are wondering what's happening with the consumer and how the consumer is holding up in this environment. has there been any deterioration? >> in aggregate the consumer held up well through '23. clearly it's been a cycle. inflation ahead of wages for a lot of people for a sustained period there. now that's flipping where wages are coming through. i think you saw some softening in '23 as consumers adjusted to that reality. but also,there's a kind of bifurcation. those with less disposable income came under more pressure from wages, from the categories that were inflating. that is now softening out, too, so that we have to focus on affordability options for that

segment of consumers. there's also higher price point categories and premiumization opportunities that really were flying as well during '23. we see the portfolio brands and packages and different price points really playing to our strengths in '24 and allowing us to be across a broad spectrum of consumers, but in overall terms it will slowly get better through '24. >> i like to ask you about marketing and advertising and how you're feeling and how much you're spending. you do a lot there. you didn't advertise in the super bowl. i wonder how -- are you increasing, decreasing, holding steady, whatyou see for the cost environment and getting sales higher? >> well, we did run a body armor ad in the super bowl. overall in marketing, we have taken a position that we're going to lean in and keep investing until the growth isn't there. that has served us well over the

last number of years. we're going to keep a focus on driving the marketing behind our brands, the innovation behind our brands, working to execute in the marketplace and drive that. you'll have seen in the numbers that our marketing advertising in marketing has been going up over time. we've been leaning into that growth. that's going to be for the rest of this year. of course in terms of where we direct the money on to which programs, we look for the most effective and cost efficient ways of doing so, but certainly our buyers is to keep investing for growth. >> okay. excuse me. i should have mentioned the body armor. i remember the days of coke and diet coke commercials, like the "friends" one in the '90s. thank you for taking the time. >> thank you. >> james quincey, ceo and chairman of coca-cola. by the way, i did try the new spicy coke. raspberry flavored. we were talking about it before. it's a little sweet. my kids like it more than i do. but they're not allowed to drink

it. there you go. >> meantime watching the market. pretty steady rerating of equities. dow is down about 485, suspect down about 4960 or so. all sectors remain low. watch jetblue today popping double digits. carl icahn takes a stake. we'll take a closer look at what he sees in that company when we rerntu. . 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? at&t business. at pgim, finding opportunity in fixed income today, helps secure tomorrow. our time-tested fixed income suite, backed by over 145 years of risk experience,

helps investors meet their goals. pgim investments. shaping tomorrow today. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now.

♪ welcome back to "squawk on the street." let's get a check on the airlines today. pretty volatile ride over the last year for shares of most of the majors. all in the red with delta the rare outperformer. while some of the names are trying to hold on to gains for '24, largely under performers across the board. that's not the only story in the airline space. >> no.

we're taking a look at shares of jetblue as well. we talked about it earlier. they're up around 12%. don't get too excited. it's about a $2.3 billion market value. they're up because carl icahn owns almost 10% of jetblue. he says the stock is under valued and has held discussions and will continue to hold discussions with the company about, quote, the possibility of board representation. first jetblue as you can see also has had a -- if you go back a ways -- a tougher ride as well. the deal to acquire spirit being abandoned after a judge ruled in favor of the doj saying shouldn't be allowed to do this. let's bring in phil lebeau for a bit more on this. i would love to get your perspective on what it is that a new ceo there potentially and/or let's call it another member of the board or something like that, could actually do in terms of changing the math of the company?

>> in terms of changing the direction of the company, i think carl icahn knows and everybody in the airline industry realizes consolidation is -- it's done. is it possible that the appeal of the spirit-jetblue merger could win and that they could go forward and actually combine? that's possible. that's not the expectation that is out there. most believe that they will lose on appeal as they did the first time around. so the question becomes, what does the ceo who started, by the way, yesterday, her tenure, what can she do to improve jetblue? she's already said we're going to cut costs, we're going to drive about $300 million more in passenger revenue through nam of initiatives and defer capital expenditures and become a leaner, more focused company, focusing on the routes where we can do better, where we can make more money, and we're to the going to get caught up in chasing after things that may or may not pan out. i think carl icahn would like

that because he is a nuts and bolts blocking and tackling ceo. that's what you want from her. that's what she has shown throughout her career, david. >> what does cutting back on capex mean? that makes you scared when you hear that from an airline? >> near term. pushing out aircraft deliveries. some of the aircraft they plan to take over the next couple years they're going to push that out a little bit. >> got it. all right. i think we've got boeing delivery numbers as well that are available to us now. what do we got? >> yeah. and january is never a huge month either for boeing or for air bust. we got the air bus numbers last week. they weren't huge. january never is. for boeing you had zero orders. it's not often we see that. zero orders. 27 deliveries. 25 being the max. the backlog just under 5600 aircraft. in terms of the max, remember, they took a judicious approach once the alaska airlines incident took place in terms of

their production. they didn't stop production, but they certainly slowed it down to say what are we doing to make sure that everything we've put out from the plant is exactly as it should be so as a result, you're -- you know, the question becomes are we going to see orders or deliveries pick up over the next couple months as you take a look at shares of boeing, keep in mind that last month, they did deliver the first maxes to china since before the pandemic. delivered three last month. they have about 85 of those in inventory that are built and ready to be delivered and the expectation is that we'll see a good chunk of those be delivered this year to airlines in china. >> so is the expectation that deliveries will continue to slow because of the problems they're dealing with? >> i don't know if they're going to slow. i think the expectation is that they may be a little bit slow on the max ramping up, but look the production is at 38 per month and most on wall street have their models at annual

deliveries around 500 to 515. remember in terms of max deliveries last year it was far lower than that. they are increasing their production relative to last year, but it's just, you know, they're wisely being judicious in terms of ramping up production in deliveries. >> thank you. phil lebeau on boeing, which is down a little more than 2%. still ahead, nvidia's recent big games leaves wall street playing catch-up. two firms raising their price targets by $200 or more. are there risks to the rally here? what investors need to know xt. wi the dow down 472 points. we'll be right back.

that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy.

welcome back to "squawk on the street." time for a news update. the senate voted to approve a

$95 billion aid package for ukraine, israel and taiwan. it must still be approved by the house, but it faces an uphill climb in the gop controlled house where it faces stiff opposition from many republicans. after failing last week to impeach homeland security alej alejandro mayorkas off his handling of the border house republicans will try today and there's a razor thin margin begin. three republicans killed the measure when they voted against it. house leadership is hoping the return of majority leader steve scalise after cancer treatment will give them the votes needed. and it is a mess at airports across the northeast as a strong winter storm is forcing flight cancellations. according to flightaware, more than 1,000 flights were canceled by 7:30 a.m. eastern this morning. according to the national weather service new york city could see 6 inches of snow while the boston area could get more than a foot. back over to you. >> appreciate that.

julia boorstin. watching the markets on this selloff. pretty moderate. dow is down 500, better than a percentage you can see. nasdaq taking the worst of the brunt. some names creeping into the green. nvidia is green, dexcom, workday, amd, splunk, electronic arts. we'll he keep an eye on that. >> the dollar is up about a half a percent the. on the day when the chip sector is down, nvidia is moving higher after the run that company has had this year. what are the risks to nvidia's run. kristina partsinevelos joins us with a new contrarian take. >> i figured it's about time given the euphoria around this name. nvidia briefly surpassed amazon in market cap yesterday and witnessed a remarkable $500 stock cease in its share price just over 52 weeks, which seems invulnerable to bearish sentiments on a day when the broader market is firmly in the

red. no sell notes from analysts in over nine months. it's easy to overlook potential concerns but amidst this ai euphoria, there are a few flags that emerged. wolf research highlighting easing supply constraints which may dampen chip demand in the later half of this year. morgan stanley questions the sustainability of nvidia's growth trajectory. a plateau in 2025. and then there was this one barkley credit team note, credit not sell side, that predicts a mod ter rags in demand as the industry transitions from training to the interference phase. we've got also heightened competition in the industry, amd and intel and mega cap firms meta, amazon, google, the list continues, creating their own in-house custom chips would prove as an alternative to gpus. those are many examples of what could erode nvidia's gpu

dominance in the near term or medium term. the barclays credit team notes nvidia's venture capital arm made 33 investments between january and october 2023 with the majority in q3. they suggest that maybe nvidia is financing startups who use nvidia technology which would imply that nvidia could be funding its own customers. but this is just one credit report. 92% of wall street sell side analysts say otherwise. saying that nvidia is still a buy. david? >> thank you. we'll keep the information on this topic going. joining us now is bernstein's stacy rasman has a $700 price target on nvidia, known as sort of the ax and chip stocks. smiling at that. you heard christine report on nvidia shares of which amazingly enough were up today. we got earnings next week,

right. >> on wednesday. >> what do they have to do to not just reward the market but continue this upward spike. >> i think it's widely believed and almost certainly true that numbers for nvidia are going to go up. right. they are still supply constrained and i know we talked about supply constraints easing but they're selling everything they can make. demand is still off the charts for their products. they can't make enough. the question is whether -- how much are numbers going to go up. you could almost argue you want them to go up, maybe you don't want them to go up too much. that sustainability risk is the one where people have the most concerns. the numbers have gone up so much, so quickly, you just worry like how long can that sort of thing continue. the more the numbers go up like the more it does fuel that potential worry. i get it. at this point, though, at least

for this year, i think we're fine. like i said, they're selling everything they can make. they have numerous product cycles coming, so they have new products for the chinese market. they've been shut out there. they have an entirely architecture called blackwell that comes in the second half. i bet pricing is going to go up again. numbers for now are just fine. >> interesting. we noted yesterday, jensen's trip to the middle east, abu dhabi, uae. there is another market now for sovereign beyond the hyper scalers that could represent something significant for nvidia? >> maybe. yeah. and, you know, they've been starting to talk about sovereign purchases. like even small countries have more purchasing powers than the larger companies do. he was in the middle east, japan has talked about this. india. there are others. but, yeah, you know, you could

imagine a scenario at some point where every country has their own ai infrastructure that's put into place. yeah. i mean there's tons of opportunity there that still today is nothing, right. >> but on the bear side, on the bear case, which there isn't much of a bear case right now in this name, but china, speaking of sovereigns, right, they have to deal with these export restrictions and they're trying -- trying to go around it and sell unique chips for the china market but i've read mixed things about whether there's going to be a strong demand for them with china building out its own chips? >> that's a valid concern. at this point china is out of the model. whatever they sell would be upside i guess because they're not selling anything right now. the issue with the latest set of sanctions is that there were some very strict performance thresholds. the sanctions from a year ago they were relatively easy to work around without significantly impairing the performance of the parts. that is no longer possible this time. they have to very much drop the

performance of what they're selling in order to make them legal. at least on paper there are chinese alternatives that would have better performance from players like huawei and others. the nvidia parts would have software compatibility with their software ecosystem that the huawei and other parts would not. they may have like better like uptake with more of the second tier developers in china who can't afford to do their own software development, but like the larger ones, larger customers in china may or may not go with them. they're not selling anything right now. >> right. >> they're shut out. >> finally, you hosted a q&a recently with frank keller, the investment director at the chips program office of the u.s. department of commerce it's a long -- fairly long transcript, but was there one thing and/or at least some takeaway that you could slayer -- share that surprised you with the chips act and what it's going to mean for the chip

making ability in this country and the companies involved? >> people are complaining how long it's taking, right, although frank was able to give us some color. the government doesn't turn on a dime. you can tell like i think the folks in the office are not thrilled with how long it's taking either. right. but it does look like we are going to start to see funding start to get deployed. we've seen a few preliminary announcements and we will see more this year. the dollars will start to flow this year. >> you do? >> that will be helpful. >> it will be helpselful? >> yeah. we've had this conversation before. if the goal is to onshore like material amount of capacity from elsewhere, i think the amount they're spending is a rounding error. $50 billion give or take for the u.s. semiconductor industry over five years is not very much, but it's a start. you have to start somewhere. >> right. yes. >> and it will be a spark in projects to get begun here and built out here in the u.s. where otherwise the projects might

have gotten done somewhere else. >> stacy, always appreciate it. thank you. >> you bet. my pleasure. >> still to come this morning, a look at one risk on asset hitting fresh highs and out performing this market. we'll tell you what that is after a short ea brk. - "best thing i've ever done."

that's what freddie told me. - it was the best thing i've ever done, and- - really? - yes, without a doubt! - i don't have any anxiety about money anymore. - great people. different people, that's for sure, and all of them had different reasons for getting a reverse mortgage, but you know what, they all felt the same about two things: they all loved their home,

and they all wanted to stay in that home. and they all wanted to stay in that home. - [announcer] if you're 62 or older and own your home, you could access your equity to improve your lifestyle. a reverse mortgage loan eliminates your monthly mortgage payments and puts tax-free cash in your pocket. call the number on your screen. - why don't you call aag... and find out what a reverse mortgage can mean for you? - [announcer] call right now to receive your free no-obligation info kit. call the number on your screen. oh no, a rash. maybe it'll go away. awww, how am i going to find a doctor i'll actually like? is that a qr code? dr. stafford makes you feel at ease. thanks rash! you've got more options than you know. book now.

welcome back to "squawk on the street." let's get a check on cryptos. bitcoin under a little pressure but did top $50,000 overnight. highest level since december 2021. the world's second largest crypto, ether, in it the green. franklin templeton filing for a new etf. peter teel is getting in, saying

the founder fund invested $200 million to fund crypto tokens. half in bitcoin and half in ether. that's before the bull run. pretty well timed on their part. jack dorsey wore the shirt to the super bowl. crypto has been having a nice comeback. >> good to see jack -- >> next to jay z. >> next to well-known celebriti celebrities. investors react to the hotter than expected cpi. rates and the portfolio in a moment. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy-to-use tools make complex trading less complicated.

custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley trading at schwab is now powered by ameritrade, 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. trade brilliantly with schwab.

so, you've got the power of xfinity at home. now take it outside with xfinity mobile. like speed? it's the fastest mobile service around... and right now, you can get a free line of our most popular unlimited plan. all on the most reliable 5g network nationwide. ditch the other guys and you'll save hundreds.

get a free line of unlimited intro for 1 year when you buy one unlimited line. and for a limited time, get the new samsung galaxy s24 on us. this morning's inflation print raising fresh questions for the fed and the timeline of potential rate cuts ahead. we want to bring in steve liesman with his take on the print having had a couple hours here, steve, to dig through some internals. >> yeah. carl, i don't think the fed is going to be as freaked out about this number as, perhaps, the market is. if you look back, we pulled a quote from susan collins last week. she just used the word bumpy, the way a whole bunch of other folks used the word bumpy. she says, we think it's going to come down. i expect the inflation slowdown

will happen. the timing is pdifficult to predict and the road may be bumpy. i think i see this morning the market coming closer to the fed. i don't think also, carl, it's time to write off the idea that inflation is going to be slowing from here. a lot of january effects in here. the problem is i can't be proved right about this for another month or two. >> do you think the oer number's suspicious? >> not suspicious. it's just the way it's calculated. you hear the same thing i do, all the market-based numbers are coming down. it's not going to translate to the cpe. i would say don't rest your hopes on that february 29th cpe number because i'm hearing what we're seeing in the cpi will spill over into what is elevated and maybe hot pce number. you know what's happened now, carl, remember the number that nobody ever paid attention to,

the distant cousin or no one liked, the ppi number becomes the most important because of the way it feeds into the pce. you've watched this number over time, this number has also been rocking markets. >> i always love a good wholesale inflation read, steve. what are the swaps market doing now? you said the market is coming around to the fed. it's been this whole push/pull. now when does the market think the fed is going to cut and how many times? >> so, if you put in that january 2025 contract, i'll translate that into cuts for you. what you see is the peak of this was just a month ago when seven 25-basis-point cuts. we went in this morning expecting five and now we're around four. that middle dip there, that shows -- that's the low for the

year. that showed seven rate cuts expected. now you translate that along. now we're back around four or so rate cuts expected, which is close to the fed's three. we'll see -- you know what's funny, guys. i was one of the hawks in the room when the market said march and i said may. now i'm a little on the dovish side. i have to rethink whether may is still on. the may probability is down around 40%. i still think it's possible but you have to believe it's maybe slipped a bit away this morning. ha you, steve. steve liesman. next hour the ceo of lazard right after the break. our live market coverage continues. 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! 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. it's time. yes, the time has come for a fresh approach to dog food. everyday more dog people are deciding it's time to quit the kibble and feed their dogs fresh food from the farmer's dog. made by vets and delivered right to your door precisely portioned for your dog's needs. it's an idea whose time has come. 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? at&t business. nature's bounty hair growth. clinically shown to help grow thicker, fuller hair with just one capsule a day of advanced hair complex.

conquer hair thinning... ...and fall in love with your hair all over again. only from nature's bounty. good tuesday morning. welcome to "money movers." i'm carl quintanilla along with sara eisen. lael brainard is with us on the hot cpi number and what it's telling us about the economy. lazard ceo peter orszag. >>