persistent. we think is fed is going to take a very cautious view towards cutting interest rates. we think the market is a little too optimistic about that at this point in time. >> thank you very much. joann feenny. folks, that does it for us today. join us back here tomorrow. right now, it's time for "squawk on the street." ♪ good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. nasdaq futures stealing some love from the broader markets as we set up for a big stack of news this week. sell-sideconferences. our road map begins with stocks in this ongoing a.i.-fueled rally. b of a ups its target for the year. and the nasdaq looking to build on fresh ecords. plus, as usual, we're keeping an eye on shares of apple. they're pulling back after a

nearly $2 billion eu fine, while two new notes say, hey, don't worry. they suggest an apple comeback likely. as for tesla, well, its china struggles continue. shipments plunging to the lowest level in more than a year. let's begin with the markets entering a new week with record highs, fueled once again, jim, by a.i., which seems to be the topic of so many weekend notes the last couple days. >> oh my, carl. a lot of people want to say that the whole thing's gotten out of control, but let's say you go back a year, and you look at what nvidia -- the estimate for 2024. the stock was selling at 12 times earnings a year ago, so we can sit here and moan how expensive it was, but it's by far the cheapest of the mag seven or mag six if you want to drop musk. but i think the problem has always been that when you look back, this thing is so underestimated in terms of what it can make that you don't know how to value it. what are you going to do, take it to nine times earnings like

it's a bad bank? >> jim, my weekend was characterized by conversations with people who were seemingly involved in the endless construction of datacenters. >> so, you were with losers. that's okay. i was with winners. i was with my kids. you were with losers. to each his own. >> i did spend family time, but i'm talking about a meeting on friday, so that was a workday, a large real estate investor, datacenters, datacenters, datacenters. somebody involved in the deal world, in particular on the financing side, in advising on those transactions, financing for datacenters. >> at least it wasn't private credit. >> somebody more in the political realm who's getting incomings from various countries about building datacenters, because they have access to power that is renewable and stable. >> right. they have cheapest power, but i'm going to give you the current zeitgeist, carl.

it's equinox vs. equinex. have a good show. >> these datacenters were being built at a rapid rate and trying to meet the future demand for generative a.i. and all the processes that need to take place. that only points to one thing for nvidia, doesn't it? more and more demand, not less. >> look, the problem has been, you can't get enough. that's why zuckerberg was such a genius by setting up a team that could meet with jensen's team, the ceo of nvidia, and say, look, we're not going to stockpile the 350,000 chips. we just need it to make instagram go fast, and we can talk about google back-end anthropic, and by the way, anthropic, that's the one the people are using now, the younger people. >> oh yeah? the youngsters like anthropic, huh? >> they think it's more accurate. but i would tell you, david's right. i mean, i have been researching power companies to see who's got

the lowest power that's got the most datacenters, and most of the datacenters, by the way, around solar or wind. >> right. that's why i know incomings from countries that have access to a lot of solar and wind conceivably where they can construct datacenters is a new -- seen as a new growth area. >> as long as it's not in china. >> all of which would seem to indicate at this point that there's significant future demand, given everything that has yet to even be built, jim. forget what we're already talking about. and every day, we get into this conversation. on friday, we were talking about dell, which clearly had access, for example, to the nvidia chips, in a way that hpe did not. >> michael dell is a very special relationship with jensen huang, and he got all that -- not all he wanted because he obviously wanted more, but he has such incredible demand. i have a company called next tracker on tonight. they are saying that 25% of our electricity, by the end of the

decade, is going to be solar. about 25% wind. it's important because if you're going to do the datacenters, they cannot run on fossil. these guys are all just demons about what kinded of of power d for the datacenters. it's very important, because our country going to end up -- do you know that sweden, not that much sun there, they're going solar in part because they too want to get -- remember, jensen came out and said, every country needs its own a.i. a lot of people feel in terms of the bubble, well, that's just talk, but when you speak to jensen, he's saying, we can't be cultural renegades. the reason why it sells at 12 times -- if you look at last year -- because the demand is insane. not because he's hype artist. he's the opposite. >> the innovation is going to have to fit within a political framework, cultural framework. speaking of jensen huang, did speak over the weekend at stanford about a.i. and its ability, in his view, to pass "human tests" maybe in the

next five years. >> we can get to the musk lawsuit. musk says it's here now so that jensen is putting it off. >> saying in five years, we'll be able to do well in every single one. that's longer than some people may have anticipated. >> i agree. >> as i referenced on friday, the lawsuit from elon musk against openai is just a nice read in terms of the -- a quick history of a.i. >> it is. kasparov. >> if you want a quick history of a.i. there is that. but five years seemed to be a little bit longer, perhaps, than some might have anticipated in terms of being able to meet those kinds of -- >> but it's rainy day saturday, so we're watching traders because of peacock, "traders," excellent, by the way, if you like reality shows. "traitors." people are watching peacock. >> they are. they are watching. >> this is a super

"survivor," "big brother." i will tell you that during one of the breaks, one of the rare breaks that we took, my youngest says to me, dad, you have -- i'm in the club, and you have held back the next nvidia from us. i said, look, no, nvidia is it. she goes, no, i want another nvidia, and i want it now. and i said, i don't know, go make yourself a sandwich. everybody wants, wherever i go, give me the next nvidia. i don't have a next nvidia. nvidia is a work in progress. >> nvidia -- the next nvidia is nvidia. >> thank you. >> super micro, not going to fit the bill? >> super micro is a rack company. just go buy dell. dell is better. super micro -- >> even though dell, on friday -- >> the s&p is adding supermicroto the list. i had them on. i said to my kids, was

supermicro not good enough? >> it is a ten bagger this year, not bad. >> goldman initiates neutral. >> i think that was a good call on the additive to the s&p, taking out whirlpool, by the way. >> bigger than three dow names. >> 3m -- well, the usual gang of idiots in terms of the ones that -- i don't mean that. 3m is great. my father worked for 3m, for heaven's sake. my problem with the supermicro is that this is a super-charged nvidia, and it has been expensive where if you look back at the old, then boom. if you want the cheaper ones, broadcom reports later this week. that's one that is not juiced. and that's hock tan. >> and you think it's still in the center of this overall -- >> it's broadcom, it's dell, maybe marvell, which reports this week. it's lisa su at amd. it's cadence. >> that's all datacenter, right? >> well, it's datacenter, but also, for lisa, it's going to be this. >> well, oh, right.

>> lisa's got this going. that's goingto be talked about this week by the old hewlett packard. >> right. generative a.i. on your pc. >> yes. enrico has not talked it up, but lisa su, this is very interesting, this is at the partners meeting. lisa su is by video. jensen h jensen huang's in-person. >> meantime, nvidia's cfo presents today at morgan stanley. >> and colette kress is the best spokesperson and she's the person on the call to get the q&a. she's brilliant. goldman-sachs partner. there's a lot of diaspora there, david. nvidia, when you go listen to them, you know, the idea that they're a bubble, if you go back and look at the top ten companies in 2000, they were all, like, listen, except for cisco, we're the greatest in the world. jensen is so self-effacing, and colette kress will talk it down. you want to go there and be a big talker about it? she has talked me down.

she says, jim, come on. i get a little -- put the silver hair. that's a 59-year-old denny's in the backseat, you know? he was a dishwasher at denny's for a while. >> i know. >> what do you mean, you know? >> that's the great american success story. >> it is a great success story. there was a great "new yorker" piece on him. >> there, he made light of the fact of how far we are with a.i., generative. i brought it up with him, saying, can you make light? isn't it possible -- i said, my partner, david, thinks that already many of us are not real. and i said, that was a joke. but colette said, look, come on. we're not there yet. >> i do share elon musk's concern, without a doubt. >> jensen said, try stopping it. you got to put the guardrails, but try stopping it. >> there aren't going to be guardrails either, and the fact that all those sovereigns will

be developing their own, but you can't stop it. >> john connor is your son? better hope so. remember when terminator 2, he tricked the vicious terminator into admitting that wolfy, remember, the dog -- >> sure, fantastic moment. >> no fate. no fate. yes. >> david's in that doom. i'm in that, let's go back to equinox. >> we'll have equinex. that will be great when the end is here. we'll own that. >> maybe that will end the spacs. >> the spacs -- >> that's what it took. there's a lot of news on apple today, down in the premarket. the eu does fine the company nearly $2 billion, alleging it abused its market position for music streaming app distribution, stifling competition from rival services. apple says it will appeal that, claiming the eu failed to uncover any credible evidence of consumer harm, although regulators say the ten-year conduct, jim, may have elevated prices. apple is going to appeal. >> un,you know, every six month

they ask for a check from our big tech companies. our antitrust department is no better. these companies view apple as a honey pot, i think. but there are various stores that they have to do. there could be a work-around, but i think the negativity toward apple has to do with the fact that people have had it with just the -- i'll caution you. the samsung phone at best buy, trading unbelievably hot. it's filled with seven different features of a.i. the apple 15 has very little a.i. >> this is now a company that a lot is going to be resting on their ability to deliver in june. then the new phone, the 16. what generative a.i. abilities are going to be embedded in that, what they can charge for them. there are those, though, who are believers that apple, even if they're not the first mover, is

going to be the best mover, so to speak, and when it is in a billion phones or at least, there's a going to be a -- forgive the use of the word -- a turning point. >> i was going to mention the piece today. >> you want to sell it now? be my guest. he didn't send an invitation to people's funeral, but i think -- >> what did he say? >> ben's point is that if you sold too early, microsoft, if you sold too early, tadobe, he pinpoints the moment on the chart when a.i. was rolled out. >> he was on -- what was it? he was on "fast money" last week, and he was really fabulous. ben is the star of the show here as far as i'm concerned. he was the first one to say, nvidia is not expensive before the run. let's give this man his due. he's not falling for the notion of the bubble. he's saying that the valuations are good. today's apple piece versus, say, what the tactical downgrade at

evercore, if you sell the lull, you make a mistake. it's a really kind of intelligent position. remember, renew about the samsung phone from corie barry at best buy, and what is the hottest thing selling at best buy? you've doubt medicined me on th. the ray-bans from meta. when they have a.i. in ray-pan bans, they can see right through you. >> what's the cost? >> 170 bucks it h. >> no, it's not. >> while you guys chatter, i'll go to bestbuy.com. go ahead, david, keep talking. >> really? i can keep talking? >> yeah, you can talk about how mankind is doomed, keep going with that rap. go to glp-1. we haven't touched that at all. >> the point, jim, is that apple's going to have to prove to folks that china is not collapsing from within.

>> that is so hard. it's like today, we got a note about, hey, don't give up the ship for starbucks. now, this is a travel trust position. >> is that a top pick at wells? >> it's not really related to china. it's more saying, look, it's troughing. and i look at that, and i say, okay, that's not bad. that's, like, don't sell disney at 80 when it's troughing. don't sell apple, it might be troughing. david, troughing is the new a.i. >> troughing, baby. i know, listen, people are talking about what trades at 23 times 26 numbers. that's not -- i mean, again, that's a ways out, but i'm just looking at some notes here from apple bulls that i have had a conversation with late last week. >> oh, is this different from the weekend boring people? >> these are different than the datacenter conversations all weekend. ecosystem around generative a.i. with the app store. you know, it just -- a lot of it comes from the edge, by the way. so, it's dell servers, the a.i.

servers at the edge, not in the datacenter itself that can send things to the phone. it could be a very important moment. >> okay. >> but it's still on the come, jim, and we don't know. we don't know at all. >> i'm telling you -- >> of course they have to cost more. >> that's the list price. that's the list price. you pay that price, you're a sucker >> i'm right, you're wrong. >> people -- well-off people look at that and say, oh, that's the price. >> it's 300 bucks. by the way, that's not a bad price. >> how about vertiv here? >> it's not the same as your typical ray-bans. he completely ignores me. >> i have to. you're just so negative. go be with your data friends. >> your weekend server friends, server farm friends. we'll take a break. take a look at the premarket. a lot of calls to get to this morning. busy on the sell-side. norfolk southern, bros, disney, lilly, dash and lyft. futures under esre cprsuoming off a solid week last week. back in a moment. expand your i. but to make it powerful enough to connect your data wherever it is, you need cdw and netapp.

cdw experts will work with you to understand your needs, then customize a netapp cloud services solution to integrate data management for all your clouds, helping you reduce spend, improve security, control data 24/7 and automatically detect anomalies. in the cloud, at least. netapp makes efficient cloud management possible. cdw makes it powerful. rylee! from rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light.

and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪)

whoa, how did you defeat them? get iphone 15 pro on us. with a little kung fu strength and by connecting my devices to the most powerful force of all. skadoosh. hah, huh? cool right? amazing. harness the power of xfinity internet and stay connected to the things you love. ah, they'll be like this for hours. hello dad, hello dad, hello da. uh-oh. good bunnies. ahh!

♪ ford out with auto sales numbers for if he can. le february. >> these numbers are up for ford comparing february sales of this year with february of 2023. ev sales, up more than 80%, but remember, the ev production had been shut down for a time at the beginning of last year, so you're having a comparison here against lumpy production in early '23. hybrid sales, no surprise here, up more than 31% compared to last year. hybrids, they have been red-hot, and it's been a big hit with ford truck buyers. they are going to be increasing, doubling their mix of f-150 hybrids. last year, about 10 or 11% of the f-150s that were sold were gas-electric hybrid versions.

this year, they expect it to be closer to 20%. not a surprise because you're looking at demand that is very strong. you have the best-selling vehicle, and you have demand for hybrids, very strong. ford, wisely doubling the hybrid mix for the f-150. guys, back to you. >> phil, the gross margins on those are extraordinary. correct? >> i'm sorry, what part, jim? >> the gross margins. >> oh, yes. >> the hybrids have the best gross margins because they're the ones he's got down. >> absolutely. absolutely. and look, that market, jim, it is not slowing down. i was just having a conversation, you know, i got into new york this morning, and as i walked into the nasdaq this morning, the person who was stopping me wanted to talk about buying a hybrid, and i said, it's great. and they were, like, that's all i'm doing. that is the conversation i have 8 out of 10 times. >> i have the maverick and it

was $36,000. i don't know how farley makes money. but the fact is ford makes these better than, i think, than anyone, and the small and medium-size business people just love it, correct? >> right, because when you look at the hybrid market, for the most part, you're looking at smaller vehicles or smaller sedans or crossover utility vehicles or suvs. within the pickup truck market, ford is leveraging its strength in pickups, whether it's mid-size with something like the ranger or full-size with the f-150. they are wisely taking that strength and then using the fact that everybody, you know, i say everybody. a large chunk of the buyers want hybrids right now, and that's why they're going to be doubling the mix on the f-150. >> phil, elsewhere on your beat, there's china tesla news, an american investor day. there's jetblue save. >> yeah. when it rains, it pours. >> busy, busy week, phil.

>> it will be. when it comes to american, don't forget we have an exclusive with robert on money movers. we'll be talking with him about their outlook as they look into 2024 and beyond. this is a company that, guys, three years ago, the debt level was so high, and people were saying, what are you doing? i mean, pandemic, obviously, had an impact here. robert has done a very nice job. him and his team have done a very nice job of steadily bringing down the debt level. now, they still got a ways to go. they're nowhere close to their competitors. but that's been a focus, and they have been very effective about utilizing greater utilization of their two biggest hubs in the u.s. when you're talking about dallas as well as charlotte. >> phil, state of the union this week. at what point does president biden have to declare that he's with the unions, we don't let the chinese, you know, a volvo kind of -- china in drag, so to speak. or to we favor esg and going all

electric, including having chinese cars? isn't this the push comes to shove, esg versus unions? >> i'll tell you this much. he's probably going to make some kind of comment regarding evs and the push for evs, although we know that decision regarding standards, that's coming out within the next several weeks. the bigger question is what is going to be done with regard to chinese vehicles. you saw me in chile. i'm not kidding. the people down there are like buyers anywhere. you give them a chance, any buyers anywhere, i don't care if it's the u.s., chile, europe, asia, you give them a chance to buy a comparable vehicle for 4 or $6,000 less than what they would have to pay with another brand, they will go with the cheaper brand. and i know people will sit there and say, well, you sell cheap, you get cheap. the quality is much better. they just have a cost advantage. that's going to have to be addressed in washington at some point when the chinese decide they're going to try to sell in the united states. >> the chilean reporting, phil,

it opened my eyes. they know it. i mean, it doesn't matter what part. you're absolutely right. i think that was the nature of the piece. i've been thinking about that. it doesn't matter where you go. the chinese will win unless you keep them out. >> right. and then that becomes a question, jim. if they set up manufacturing in mexico, then you've got a whole sticky wicket in terms of saying, we're going to not allow in chinese vehicles, but we will allow in bmws or nissans built in mexico. >> phil, talk soon later on this morning. cramer's "mad dash" and the opening bell coming up. to duckduckgo on all your devie

duckduckgo comes with a built-n engine like google, but it's pi and doesn't spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. i could use a little help. yeah, there's a lot of risk out there. huh ♪♪

hey, is this thing hard to learn? nah, it's easy. huh. you know, i think i'm going to ride it home. good thing you chose u.s. bank to manage and grow your money. with our 24/7 support at least you're not taking chances with your finances. yeah, i think i'm gonna need a chair. oh, ohhhh. fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out 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.

>> announcer: the opening bell ask b is brought to you by nuveen, a leader in income, alternatives, and responsible investing. welcome back, everybody. we got an opening bell about a minute and a half. let's squeeze in a "mad dash." talk a little dollar tree. >> david, you know we have the evidence lab -- by the way, they're talking about on on positively. >> yes, the evidence lab from ubs. we enjoy them. >> wells fargo has signature research.

>> oh. >> it has nothing to do with signature bank, but they recommend dollar tree today on, believe it or not, sotp. bullish, saying if you got rid of family dollar, the stock would trade higher. dollar tree sells at 24 times earnings, so it's more expensive than nvidia. >> it is? >> yeah. >> you really think it's possible to actually realize a sum of the parts? it's one thing to say something is worth more than it's trading for. >> i think you're totally right. but they can get rid of all the bad family dollars. i happen to be a dollar tree fan. i went by my dollar general this weekend because it's not functional. they don't have enough inventory. my dollar tree is chock-full. >> no kidding? >> yeah. >> all right. >> you get the peeps and stuff. you know what a peep is? >> don't spend a lot of time -- >> you know what a peep is? >> i do know what a peep is. >> what is it? >> it's that candy. they sell them during -- they have little easter ones, right?

>> i shouldn't second guess you. that was a scream. >> thank you. >> let's get the opening bell at the cnbc realtime exchange. at the big board, metallus. at the nasdaq, trullridge celebrating a name. >> i like the steel stocks very much, but that's because of the i.r.a. boy, the i.r.a. spending is really starting to come in, and what i'm shocked at is it's taken so long, but this is -- this is the year, and the steel comp companies -- steel is up 70%. we have tariffs on steel, and it's just been one of the great areas of the economy into a fed tightening and out of a fed tightening cycle, which is the first time it's ever happened. >> yeah. the manufacturing, construction, that leads back to nvidia to a large degree. >> yes. look, i know -- every time we talk about nvidia, i know people are going to get -- let's put

dell. let's put amd. i want it to be a little more well rounded, but nvidia's the leader, just because he had a vision of which, candidly, remember, no one adopted his vision until chatgpt. look, chat, which is the heart of the lawsuit, brought to the fore of how great it could be, but it's really nvidia's chips. but i want to spend more time on the equinox versus the equinix. we got a lot of stuff that's positive about lilly. again. and a lot of it -- there was a lancet piece that came out last week, and it said they thought there were 820 million people that were obese on the planet but it's a billion. the only way to control obesity is not diet and exercise. it's diet, exercise, and glp. if you don't do kpexercise, by e way, you're so frail unless you get the protein shakes by

abbott, which is another great thing that abbott's got. >> jim's referring to an ad by equinox, the gym, which folds in glp-1s as part of the pitch. >> regimen. yeah. >> ubs goes lilly, 810 to 910. >> that was a good piece. >> we talked any number of times about the fact that you do lose muscle mass on these glp-1s. >> and they're shots, not pills. >> particularly for an elderly population where it's -- you want to keep as much as you can. >> that's why abbott's taking advantage of it. >> you see a chain of gyms and the like advertising, saying, incorporate us into your overall usage. >> theoretically, it makes sense. you have to -- they talked about getting payer coverage. payers were starting to get very stingy, starting to do a lot of denying, and that's a problem, because these are the comorbidity issues. we learned that during the pandemic. obesity is comorbidity, and diabetes. >> you saw the goldman piece

over the weekend. if 60% who need the drug take it, and it's 90% effective, gdp up 1%? >> yeah, those are the kinds of things that happen. i remember a piece that recommended american airlines because the planes would be lighter from glp. we could go anywhere we want with this thing. >> i love that one. >> every pound counts. >> the planes are lighter. >> i said sell gopro because i was in japan, and i saw a goat with a gopro on a surfboard with a gopro. yes, the airlines, hold the buy, glp. that was the dumbest call. >> it hasn't stopped lilly, though. if you had sold then, you would have been a bad sale, even if you thought that was the top. >> lilly has the factories, and they cost a fortune. they're like foundries, they're very hard to make. >> no vo did that big deal to by control of those. >> we have a piece about viking

at cnbc.com, which is worth reading. i think viking is nowhere unless they get a takeover bid. that's -- they just did an equity offering. >> viking, though, shares were up well over 100% on the strength of the phase 2 trials for their glp-1. >> which is way too early, and the fda doesn't like "me too" drugs coming in from companies that don't have pedigree. the fda is not saying, oh, let's get those guys. they should say, listen, lilly's got it. lilly's got is zepbound and people are not getting sick, even though there's 42 things that could go wrong. viking cruise lines is coming public. viking versus viking, david. >> viking versus viking, yeah. >> like royal caribbean. >> love it. it's great. >> you like the 13th row down, the 13th deck? >> are there 13 decks? >> i don't know.

where's dicaprio? >> steerage. third class. >> steerage. yes. >> i was just trying to find my notes. >> what are you looking for? >> tesla shares are down another 3%. shipments from the factory in shanghai, lowest level in more than a year. a lot of stories of late about the strength of chinese -- >> byd. >> -- automakers, and obviously, ev is a large portion of that. stories about how they're going to flood the market in markets that will take them around the world, because the chinese economy is weak. you do not have the level of domestic consumption that would be there to actually buy all of these automobiles. so -- >> many of them are subsidized companies to a certain extent. >> that will be an argument that takes place when you want to put even more tariffs on these things, potentially, but they're going to be everywhere, maybe not in the u.s., but, you know, phil last week was in chile. that was a great story, just showing the strength of these chinese brands and these markets.

and then, you obviously have the advances that are being made by these chinese automakers. you've got a separate "wall street journal" story, just how quickly they're moving. and bernstein, i know you love tony. >> are you going to do that to me? >> "the journal" added, "byd launches a new product. byd makes it seem effortless. why does launch ago new product for tesla appear to take forever?" >> if you subsidize, they win. they put out some bogus numbers about their gdp growth. good luck. and the premier, for the first same since the '90s, the premier is not speaking about the plan. >> they canceled the press briefing, for not just this year. it's going to happen -- it's going to be the case for, apparently, the next few at least. >> they have more debt than we have. can you imagine? and i believe, by the way, i just want to say on the record -- >> their debt to gdp ratio is higher than ours. >> absolutely right. thank you.

>> you're welcome. >> but i will point out, just so people know, i still believe that the rally -- i first thought the rally in bitcoin was because of the etf. i just think people are just saying, you know what? i don't trust these fiat currencies. it's a diversification hedge. >> including our own with our $36 trillion? >> and the younger people believe there's no way that we can make good, other than to reflate, inflate so we're paying with cheaper dollars. >> we pointed out many times, interest costs have moved up dramatically in terms of an overall pull on the u.s. budget, one of the larger ones now. >> bitcoin is as good as natural gas is bad. natural gas is the lowest this century. >> eqt cutting some production on these low prices. >> that's a good company. well run. >> even though crude today, at least earlier, opec plus extending some of the voluntary cuts to mid year. >> we're producing 13.3. we're going to go up to 13.5.

i'm so tired of reading the stories which say we're done growing production. all of these mergers are about production, both where you went to, guyana. there has to be rationalization. there's these companies that have to get rid of their overhead to drill more. i have coterra on tonight. they have a plan to shift into permian. they add one or two rigs. there's so much oil in the permian. you can't -- >> let's not forget the name of the private company. diamondback. >> it's a fantastic company. you cut me to the quick. >> your not recalling either. great back story on the -- "the journal" did a great piece on that. that was a large deal, but obviously, private, so we didn't focus on it as much. >> i have to go into the google box. i apologize.

>> go to the google box. or just do generative a.i. with your computer there. just say, what was that deal? >> it's read my mind, and it couldn't come up with it. >> people on twitter always help us with that too. sorry to throw that out there. speaking of deals, jim, we mentioned jetblue save. >> yeah. >> how about the investor group with macy's going from 21 to 24? >> so, now, we go -- >> i want to hear what your thoughts are, but i have -- i got a couple -- >> here's my thought on macy's. if you really want to go back to where they were in 2021, where they have $7 billion in debt, you're going to wreck the company. jeff spent almost his entire regime getting the debt down after what they had to do because of the pandemic >> but if you're macy's board of directors, jim, and somebody's offering you 24 bucks, it is a real estate play. 24 bucks, you know, why wouldn't you take it? >> i know, i know. >> back up a little bit here. >> did you read the article about tony spring, what he's

trying to do? >> i'm aware. >> i know, i'm a sentimentalist. >> we're talking about a raise bid from this group of financial buyers led by ark house that wants to buy macy's. their bid is 24 bucks a share. there have been a lot of questions about their financing sources, for example, as you might expect. but they certainly go -- they're going to some lengths here to try to reassure the market. this is a paragraph i pulled out from the press release that was released yesterday. "we have identified large global institutional financing sources for each debt component of the transaction with strong interest in finalizing commitments during a customary diligence process." they said that represents 100% of the capital required to buy what they don't already own at the $24 a shared by price. they do own derivatives. we're not sure how much. they are in partnership with brigade capital management as well. they say that they've got fortress and 1 im as potential

equity investors as well. listen, they've got serious advisors. i mean, jeffries is on the investment bank side. paul weiss is advising on the m&a side from the law -- from the law firm side of things. so, i don't want to dismiss them at all at this point. today, they're having a dinner tonight at the poolroom if you want to go for, like, 50 risk arbs to try to convince them that they're serious. >> well, i was -- >> you'll hear the pitch from management. >> i wasn't invited to that particular event. >> they're trying to convince the investor base, obviously, here, that they are, trying to put pressure on macy's management, which has previously said, no, thank you, and to your point, it is a real estate play. there is a question, of course, if rates are going to come down, why wouldn't you just wait? that would seem to enhance the ability to potentially realize the value for these real estate assets. >> yeah, you know, terry lungren came out and said, we already

tried to do that. the new ceo is planning to close macy's and put up more blue mercury. he hurt his case by saying, it's going to take a little bit. what he needed to say was, i can get to $26 in two years, versus the $24 now. that gives a board a little bit of leeway to reject. >> why not sell at $24? here you go, arkhouse. draft house. whatever. make a movie theater chain, i don't care. >> waffle house. >> waffle house. arkhouse, drafthouse, waffle house. i like that. i like that. >> nashville, huntsville, and asheville. those are the three hottest cities in the country >> notbentonville or jacksonville? >> no, no. not. >> potterville? >> nor charlottesville. >> potterville is good. >> we haven't mentioned vista outdoor, jim, rejecting uri with a little billion dollar deal. we're going to hear from kroger's earnings next week.

>> outdoor rejected but it wasn't unanimous. there's a real question on that deal. and then it was rejected -- >> they've done everything they can to change that company. >> they're going to need -- it's a foreign buyer. there are a number of -- jd vance has come out and said, what are you doing here? >> they're a good company. >> we'll see how long it takes for them to get that national security review. and again, it's notable when you don't have a unanimous vote of the board to reject. obviously, m&c is hoping there will be something for them to do. they make ammunition. >> they do so much more than that. that's the negative rap, david. that's why i had them on >> what else do they do? >> they got all sorts of stuff for when you want to hike. they've got hiking stuff. they're not just an ammo company. >> they're not? isn't ammo the main part of the company? >> they're sporting goods. think cabelo's. >> they give you the hiking stuff so you can hike when you need the gun, then you can shoot the thing, whatever it is you're

hunting. >> just -- they do have shotgun shells. that's the rap against them, okay? that's the rap. >> that's not the rap. that's what they do. but why they should be sold to, i think, a czech company -- >> they're a cycling company. have you ever been to cabela's? stay away from the gun library. you'll come out with a 12 gauge. >> yeah? >> yeah. >> i don't know. >> come the apocalypse, you think he would have a couple. >> i've done some training. >> ever used a tommy gun? >> no. >> i used one about six months ago. >> really? >> were you in vegas? went to the gun show? >> it was skeet. >> oh really? >> were you wearing a -- like a suit like you were al capone? >> no, i was wearing -- i have to tell you, i'm going to get in trouble by saying, but i like to shoot skeet. i have not -- >> you don't use tommy guns to

shoot skeet. >> no, i know, but that's a turn-on, frankly, it was, to have an actual tommy gun, i mean, with the circular thing, just blasting the skeet from every side. shoot. >> that's not really sport as much as having a shotgun. >> it's plastic things. i'm not taking a family of deer out. thumper. >> we need the deer population reduced. >> i can take out a family of deer in a nanosecond. >> they are a menace. jim, really quick, in media today, we're going to get netflix presenting. disney, morgan stanley, $135. >> did you read that? experiential. >> and "dune 2," best debut of the world. >> i didn't watch dune 1. i watched "dune 2." >> we went back and watched it. >> i'm told you have to watch "traitor 1". >> t r-a-i-t-o r. what network is that on? what streaming service?

>> there's a peacock in season one. >> oh, thank you. this is a beautiful movie, i have to say. >> oh yeah. >> i didn't have a clue what the heck was going on, but it was beautiful. >> on disney, the bull case at m morgan stanley is $165 and a lot of that's about profitability and streaming down the road. >> this is their chance. i feel they have to do something, because remember, i know that nelson peltz, but the heat on these guys is pretty heavy. lot of heat. >> who? what? which heat? heat on who? on the board? >> on iger and his team. >> oh, yeah, right. >> no? >> i don't know. we'll see. listen, between now and the vote, roughly a month from now, they're going to be spending a lot of time with iss and glass lewis and investors. it's a big distraction for management. >> why is there -- oh, man. >> they were happy they got the support of all the heirs last week. >> they have -- my travel trust

has more shares than they to. >> grand-nieces, great-grant -- >> it's such an inconsistent market. there's no room for drugs and at the same time datacenters, as david said. i thought david was going to come in with a big rap on private credit but i guess that's after the blackstone dinner. >> what would you like to know? >> i was saying, i thought you might have been with a bunch of private credit people. >> it's all within the alternative asset management family. the alternative asset managers are under cover, to say the least. >> that's one of the things i'm trying to get david do. i want a doc on private credit. >> i can't do a doc on private credit. there's nothing to show. >> what would you look at? money? >> people bashing their heads -- >> there's nothing to show. nothing. it's a visual medium. i don't know if you heard. >> breit -- >> 100% of the redemptions.

>> we knock them when they're down. why not say something good when they're up? >> i was going to on friday, but it was you and me, and you just talked too much. >> what can i say? he's right. >> guilty. >> as we go to break, let's watch bonds today. the data flow doesn't really start until tomorrow, but we will get harker at 11:00 before we dive in tomorrow with ism services, factory orders, durables. busy week on that front. for now, off the initial lows, s&p, 5,103. don't go anywhere. so this is pickleball? it's basically tennis for babies, but for adults. it should be called wiffle tennis. pickle! yeah, aw! whoo! ♪♪ these guys are intense. we got nothing to worry about.

with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free. everyone say, “space pod.” cheese. [door creaks open] [ominous music] (♪♪) [ding] meanwhile, at a vrbo... when other vacation rentals are just for likes, try one you'll actually like.

you know 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! take look at some nasdaq 100 laggards. you see workday at the top of the list and tesla and warner brothers discovery below 8.25 which would take you back to 2009 or so. google in decline of 3%. dow down autbo 74. stop trading with jim is coming up next. let's check it out.

says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪) ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term

policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

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? you can get 2 unlimited lines for just $30 each a month. all on the most reliable 5g mobile network, nationwide. wireless that works for you. get the new samsung galaxy s24 on comcast business mobile. save big with up to $500 off an eligible samsung device with a qualifying trade-in. don't wait! call, click or visit an xfinity store. . it's time for jim and stop trading. >> perhaps one of the greatest stocks of the year is ferrari. simple race. this has been one of the great

rocket slips. this morning citi comes out and says listen hold to sell. we can't take this valuation anymore. i get it. it sells at a very big multiple sales. 12 times. it's two parts, 12 times sales. i would say this, that it is part of the mag seven of europe, vmh has a bunch and novo nordisk. i would not short this stock. i think this guy even admits he could be wrong in our timing, but this is one of the great stories of the auto industry which is just -- this is the premium greatest manufacturer. >> market value is twice that of ford's. >> well, it's better, yeah. >> yeah. >> what does that -- >> i'm just pointing it ut. >> two-year backlog. one of jonas' long-time top picks. >> any qs on the board? >> he's a very big car fan. my wife loves to drive cars. >> the margins are probably like

every luxury good, the margins are amazing, aren't they? >> they build them and there is a waiting list. lamborghini has a waiting list. premium cars in a world where there's a lot of richpeople as david describes as he hangs out with those people. >> on the weekends. >> i'm at dollar tree he's at data center. >> i'm in the candy aisle, you're in the ferrari aisle. >> i am. true. ferrari. >> step up your clothes, man. >> start wearing the gear and merch. >> want me to come in my ferrari racing suit. i will do that if you like. >> a lot of bitcoiners made me feel bad this weekend about that. >> what are you muttering? >> right now in the nft, i'm trying to relearn bitcoin. i thought it was the etf, i admit that and then it broke down and it's been off to the races ever since.

a lot of people who believed in it. >> bitcoin is up sharply today. >> ethereum -- >> micro strategy. >> etf and you have to buy that one. and just get ready. >> okay. >> 68990 the magic number. >> it's unbelievable. >> tonight? >> i have this nexttracker they make it so that the solar panels move so you always capture solar at a cheaper price, software and then tom jorden who is the most thoughtful man about oil versus natural gas. he's really cutting back from marcellus going all-in oil and doing incredibly well and yields well. the stock to buy. >> busy week ahead. >> yeah. >> exciting week. state of the union. we're going to hear something on unions and on esg. >> if you say so. >> i am. i am saying something. >> got it. >> "mad money," 6:00 p.m. >> see you at the private credit dinner tomorrow night. >> s&p down about 4. don't go anywhere.

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

. good monday morning. welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla and david faber, live for you as always at post nine of the new york stock exchange. take a look at stocks. we kick off monday morning in the red. the s&p just barely lower i would say after another strong week. if you look under the surface at what's causing it, weakness in communication services, energy, consumer discretionary utilities and health care. all the other sectors are up. industrials are leading today and so are materials and financials. the cyclical groups tied to the economy are actually performing a little bit better. the nasdaq is off about 0.25%. we're coming off record levels in all the major averages. treasuries, how the bond market is starting off the week.

they're higher today. 10-year above 4.2, the 2-year above 4.6, ahead of a lot of data this week including jobs. 30 minutes into the trading session, some movers we are watching. shares of super micro soaring again. the ai server maker getting added to the s&p 500. the stock is up more than 200% so far this year. more on the company's wild ride ahead on the show. macy's is raleighing. activist investors are raising their offer to buy the chain by almost a billion dollars in hoping of taking it private. the offer works out to be $24 a share from $21. see if the macy's board takes it more seriously. apple continues to be under pressure. the tech giant hit with an almost $2 billion antitrust fine in europe over apple music. the company says it will appeal. separately apple unveiled new versions of its macbook air laptops with its latest m 3

chip. shares of jetblue and spirit airlines on the move terminating their $3.8 billion merger plan coming weeks after they lost a federal antitrust lawsuit that challenged the deal. that was a win for the antitrust regulators. guys, as far as the macro data and setup, we do have a big week ahead. some highlights this week to look forward to. on wednesday, fed chair, jay powell, is going to be testifying before congress. this is the first time we've heard from him publicly since the "60 minutes" in early february before we got a little bit of a streak of hot data on inflation, so will he be more hawkish? before we get with more i think we have breaking news. >> we do. i have breaking news out of the supreme court. for that we turn to eamon jabers in washington, d.c. >> good morning. carl, it is a 9-0 unanimous ruling from the supreme court reversing colorado's decision to remove former president trump from the ballot. that means the former president

will be on the colorado ballot tomorrow. super tuesday in colorado and other states. the supreme court here ruling 9-0 that, in fact, he can stay on the ballot and has decision here that is going to impact all states across the country. there were some question here during the oral arguments about whether or not a single state or a small handful of states could move under the 14th amendment to remove a candidate from office by saying that that candidate had engaged in insurrection. this decision now by the supreme court says that's not something that an individual state or small group of states can do. during the oral arguments you heard the idea put forth this is something congress could do in the future, signal out a candidate and say that person engaged in insurrection under the constitution and is, therefore, barred from being a candidate for president of the united states or other high office. in this case however the supreme court saying 9-0 colorado is reversed and former president trump will be on the ballot

tomorrow. guys, back over to you. >> all right. eamon, thank ou. eamon javers on that important decision. haven't heard a lot about politics yet influencing the markets and i always ask people, smart people, about what it's going to mean say another trump victory. are we going to get a good stock market like last time when he was elected. i don't know. i hear mixed things. the situation is very different this time. >> it is. it starts to come up. it's been coming up more often as you might expect as we move deeper into the election season. i think there is a hope, sara, on the regulatory front, for example, if there were to be a new trump administration, most likely it would be more amenable to deals overall, but also, very hard to predict because of what we know from the last time trump was president, which was you just don't know if a company fell afoul of him, personally, hetends to sort of direct ire

at that company. >> talking about what was it time warner last time? >> time warner we did rwonder about. time warner and at&t. overall, a lot less predictability. mixed on that front. that's the only area right now -- tariffs, obviously, china what would happen there. huge issue once again if, in fact, that were to be the case. it's starting to come up more often, especially with these polls that we've been seeing in terms of joe biden's lack of popularity. >> yeah. and trump increasing in the polls. just as far as, you know, we were talking about the calendar, what else is worth watching this week, we are going to get ism services numbers on tuesday before powell testifies and then we get jobs data the jolts numbers important to look at, the quits numbers, how many job openings there are and the jobs report for february and why all this is important because january showed this burst of strength in certain parts of the

economy, and in the jobs data in particular. so what we're going to be watching for in the adp, private jobs report that we get before the jobs report and in the jobs report is the wage data because remember, wages jumped in january, so was that just all because of the weather and hours worked were decreased. some of the economists were saying that. are we going to get flat wages? that's a key for the fed in drmgs the course of inflation. here's a great chart from bespoke showing the run up in the s&p 500. we are up 16 of the last 18 weeks. something that has not happened since 1971. the number of rate cuts have been coming down and out of the market. it's not all about the fed's easy policy. the other charts i would show today because we don't have a lot of data, but this gives you a clear sign of the sentiment and setup on wall street, how about the nikkei, the japanese market, continues to break up, break out, excuse me, break out and defy these record highs. how about bitcoin which goes

above 6 a,000, testing that 2021 high of 69,000 i believe and has been a straight shot higher. even some of the most highly shorted names in the market like a carvana or a beyond meat, have seen big rallies. all the charts this morning deal with the fact that shorts are bailing and the longs are piling up and we're in this fomo market and we're trying to figure out if it can continue. if it's frothy, if the sentiment is getting extreme. i looked at a mizuho note. yes, bullish, but actually they say that sentiment and positioning have eased a little bit and moderated a little bit. i think it's just that the economy continues to perform better than expected. even in the face of the declining rate cut odds and the fact that nobody expected a recession this year. >> indeed. the record breaking rally meantime taking a breather. s&p nasdaq coming off record highs as you know. s&p 16 of the last 18 weeks

higher. the first time that's happened since 1971. let's bring in deputy chief investment officer at bernstein. i know you're sort of on the lookout for signs of froth. you're watching crypto, some of these innovation names, not to mention the heavy reliance on the mega caps right now. >> that's right. i think there's so much to unpack from what sara was going through. first of all, the big disconnect between the s&p 500 and, you know, the fed, you know, policy story, i think that can be explained very much by two things. i think it's been driven by a superior property growth from the mega cap tech names and that's been combined with rampant speculation that's been really causing a disconnect between, you know, relatively tight fed policy and easing financial conditions. if you pull up any measure of financial conditions over the last two months they've been skyrocketing. no coincidence as financial

conditions have been easing you've had bitcoin rallying, innovation names rallying, micro caps rallying. pick your index to measure speculation, it's all telling you the same things and all those things that have been shooting up with the riskier names that sara eisen was referring to, you know, all that's tied to the same story of liquidity. my issue or the risk here is that a lot of these measures of liquidity and speculation have really moved very far very fast, so the question is, you know, what's going to -- what's the source of that next leg of liquidity from here? i think it's hard to tell. >> well, there are people that talk about dry powder, cash on the sidelines, money in money markets and then they add into that, margin stability, certainly better liquidity on the corporate front, the possibility that earnings are going to catch up to sentiment. is that not true in your view? >> yeah. i think with respect to earnings, i think that is likely

to continue. everything that we look at in our data suggest that that earnings acceleration will continue from here. it's going to look a little bit different, carl. right now if you look at the earnings forecast for the mega caps, you know, they're actually set to decelerate over the course of the next few quarters. the big push you've had into these mega cap names has been driving some of the speculation gets called into question. the good thing, though, there is something there to take its place, and that's the earnings for the other 490 some stocks in the s&p 500 which are set to continue to accelerate. that's where i think the big opportunity is. but as things shift and move around, that could -- that transition could come with a little bit of volatility, given how far, you know, this sentiment and speculation has run. >> dan, it's sara. when you wonder what is going to stop the rally in its tracks or some of the speculative feverish behavior we're seeing, you know, it feels like the market is in

win-win where good economic data is celebrated and certainly better than expected but weaker economic data is celebrated like we saw with ism services friday where new orders down, prices paid less than expected and that's good news because the fed can ease rates. >> exactly. sara, i think, you know, you have to take a little bit of pause when good news is good and bad news is good. it really speaks to the level of liquidity out there and the amount of speculation. i mean, in no fundamental textbook are you going to get a world where everything is always good news and so i think, you know, really the question is, is there something that's going to be pausing that speculation to take pause or liquidity to come down. i don't necessarily see anything for the broad market. i'm not that worried right now because i do think that earnings are going to accelerate, but if you're just holed up in a handful of stocks sitting on huge gains that's the time you

want to think about repositioning here. >> dan, appreciate na. good to see you. thanks for helping us kick office 10:00 a.m. as we head to break our road map for the rest of the hour. this week marks the one-year anniversary of silicon valley's bank collapse. we'll discuss the health of regional banks from here with the ceo of kbw. shares of tesla are under some pressure this morning as china shipments dropped to their lowest levels in more than a year. the road ahead for the company. and super micro one of the big stocks to watch. the company gets added to the s&p 500. what investors need to know about that name omerasfr he "squawk on the street" continues after this break.

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.

whoa, how did you defeat them? with a little kung fu strength and by connecting my devices to the most powerful force of all. skadoosh. hah, huh? cool right? amazing. harness the power of xfinity internet and stay connected to the things you love. ah, they'll be like this for hours. hello dad, hello dad, hello da. uh-oh. good bunnies.

ahh! welcome back to "squawk on the street." moody's and fishbook downgrading their cred rating on community bang corp after the company discloses waekzs overall as we mark the one-year anniversary later in the week, silicon valley bank's collapse. to discuss the health of the regional banks and the risk that may still be out there is tom michaud, president and ceo of ny kbw. always good to have you. >> good morning. >> let's start off with new york community bank, we haven't seen the deposit flight and that seems tonight concern, but give me your overall take in terms of whether there's any chance it could be systemic and, you know, if it portends future concern

overall for the regional banking sector. >> i think what we've learned is a lot of these risks are idiosyncratic, company specific, and i think that's what's happening at new york community right now. our analysts and the marketplace i think understand that commercial real estate is under a lot of pressure at the moment, but i think it's very seg mntsds. when you think about large commercial properties and big urban centers on the coast that's an area of worry. when you think about multifamily properties that are rent controlled where rate adjustments, interest rate adjustments, where inflation and the fact that they couldn't raise rents during covid has put a lot of pressure on the market and then also what we've learned with new york communities they have a very concentrated portfolio, and concentration is another story from last spring i think [ inaudible ] at play here, so i think that while the

entire industry, the entire market is going to see more pressure from certain areas of commercial real estate, i don't think what's happening at new york community is a signal for what's going to happen to the whole industry. >> regardless of that, do thing regional banks end up in the penalty box for some time or past the tumult of last spring? >> i think they are past the tumult from last spring because i think one of the major takeaways is that the industry is very resilient. while there were three banks that failed rather spectacularly, there were all specific reasonswhy that happened. remember, 4700 banks didn't fail. so again, we should understand the reasons for why those banks failed, but our view is we have a market perform rating from our research group on the group because we do think that it's going to be choppy. however, we have some fantastic ideas of individual stocks where we think there are companies

that have navigated away from the areas of highest risk and offer very good upside for investors, so we are really positive on a couple of ideas, but we haven't put a broad blanket buy on the group yet for some of these concerns. >> i do wonder how much was the regulatory actions by the fdic but more importantly the treasury over that dramatic weekend where they came out and guaranteed the depositors of silicon valley bank and i know there were questions from there about whether all bank deposits were guaranteed, but the upshot they're willing to do that and the signal is that you don't have to worry. >> so you hit the nail on the head. banks fail because of deposit runs. they happen about every 10 or 15 years in modern american history. i think the biggest piece of unfinished business we did not get deposit insurance reform post this crisis. instead, we got a lot of

hardening of capital rules which were not the reasons why those banks failed. they failed, if you read the fdic report, it looks like 85% of the deposits of silicon valley bank flew in 48 hours. that is a bank run. so i believe that the right solution the last spring is to modernize fdic insurance and raise limits for small businesses so they can keep their payroll accounts in an insured bank with confidence. i also think the fdic should offer additional privately purchased insurance from banks, which is a private market solution. i talked about both those things in front of congress last spring myself but congress has not been moving -- >> to wrap up here, you said 4700 banks. we have too many banks still, don't we? >> i think we're goingto have a lot fewer banks. and also, scale works. banks in are bigger tend to be more profitable and it's a way

that banks can pay for all this additional regulation. so i think there will be more consolidation going forward, and i think actually the big policy decision we need is we don't need four big banks. we need four big banks that have other banks that they compete with more so that's why i think deals like capital one and discover are actually good for the market, because they'll create more competition and more choice for consumers. >> right. tom, always a pleasure. thank you. >> thank you. still ahead a look at one mystery stock surging on news it's getting added to the s&p 500 and adding to huge gains over the last year. we'll tell you why andus jt what company it is after the break. don't go anywhere. u've been a r. 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! - so this is pickleball? - pickle! ah, these guys are intense. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo

welcome back to "squawk on the street." that mystery chart that showed shares of supermicro, an ai play up 950% over the last year surging on news it's joining the s&p 500. for more we turn to dom chu. >> so carl, makes high-end servers that are used in artificial intelligence data center applications that sort of thing. the servers use those nvidia

chips. you talk about the supermicro trade. put it in context, compared to big names like nvidia and also what's happening with the yield broader s&p 500, so, well, here's the thing. if you take a look at this far above what we saw for nvidia over the course of the last year, the market value now stands at roughly $60 billion given the surge we saw over here. put that in context wait year ago when it was worth roughly $5 billion in overall market cap, how far it's run. with regard to just what we're seeing now, maybe comparison wise, put it that way, about how big $60 billion is, if you look at the stock at $60 billion, it's roughly the same size as an entire fedex after that thousand percent run there. by the way, it's bigger right now than travelers, 3m and dow. these three companies are all dow components in the dow jones industrial average to put things in context and then another

place to watch just what analysts are saying about the stock. it turns out that a lot of folks did have a buy rating on the shares. just around 69% say it's buy rated. 25% say hold and 6% say sell. what's curious about this one, carl, the average target price by fact set stands around $795. we are well above that level right now which implies a near 27% drop to analyst target levels from current levels. so be on the watchout for how much analysts start to revise the coming targets in the days and weeks with the s&p 500. i'll send things back over to you. >> important story. still to come this morning, bitcoin's rally still going 65, even $66,000 getting close to its all-time high. the cryptos you need to watch from here when we're back after this break. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh.

this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪) glp-1 drugs used in weight loss treatments stand out as the biggest global blockbuster, but these treatments require cumbersome injections. with lexarias patented oral delivery technology, early studies suggest a better way. lexaria bioscience.

the economy is simply not working for millions of hard working families. early studies suggest a better way. they're working harder than ever and they still can't make enough to get by to afford food and medicine to even keep a roof over their heads. we need to build more housing that's truly affordable. we need to address this terrible epidemic of homelessness. we need to invest in good paying jobs, union jobs and investments in our future. this, this is why i'm running for the us senate. i'm adam schiff and i approve this message. . welcome back. i'm pippa stevens with your cnbc

news update. minutes after the supreme court issued a unanimous ruling that donald trump could not be kicked off colorado's 2024 ballot, the former president posted a message on truth social simply saying a big win for america. the decision ended the legal fight over whether states could bar trump from their ballots based on his actions leading up to the january 6th capitol rhetts. the manhattan district attorney's office says former chief financial officer allen weisselberger surrounded this morning to face new charge. sources tell nbc news weisselberg will plead guilty today to several perjury charge in connection with the testimony he gave during former president donald trump's civil fraud trial. and vice president kamala harris is set to meet with the israeli war cabinet member benny gantz at the white house today. she is expected to deliver a blunt message after calling for an immediate cease-fire in gaza on sunday and criticizing israel

for not doing enough to allow aid in to the territory. david, back to you. all right. thank you. let's take a look at markets about an hour into trading right here. let's show it if we can. we are down broadly speaking. the nasdaq taking the brunt despite the fact that nvidia shares are up. we are seeing selling in apple and alphabet in particular. senior markets commentator mike santoli is here to help us break down things, fresh off a column looking at the, quote, belief phase of the bull market. what is the belief phase? >> i would argue if you went back two or three months there was a lot of fighting the up trend, denying it was sustainable. there was a pretty high level of caution out there, and i think it largely related to the common complaint that whole market was dependent on six stocks and if they manage to falter we were in trouble. the other piece built exclusively on the fed cutting rates soon and deep and both

those things have basically been called into question. we've had the magnificent seven whittled down to a couple leading and fed rate cut expectations have gone down and allow that wall of worry to come down. high nominal growth in yields. the belief phase means you can't really lean on this reservoir of skepticism that we're going to feed off for a while. it has to be earnings growth continuing. the speculative juices flowing through this market are undeniable and threaten to get us to this unstable euphoric state. i don't know that we're there right now. >> speculative forces undeniable. when you say that what are you referring to? >> i'm looking at the call option volumes from retail traders surging again back toward 2021 levels. short, the short base has been almost entirely cleared out. you are seeing momentum on top of momentum. you guys talk about smci.

all these stocks that basically have gone from the acclaimed understood winners like nvidia and we got to find the next one and next one. we're on to the third and fourth derivative in some cases. i think those kinds of spring loaded moves tell you something that also strategists have raised their targets for the s&p this year and last week, i noticed at least four or five coming up with the same position of yep, the market is expensive. here's why not to worry about it. there's a rationalization happening that it's all for the good. now all bull markets go through a belief phase where the crowd is optimistic about the fundamentals and it's not as easy as saying now that people like the market it's time to hate it. i don't think that's the case. >> goldman's pointed over weeks, david kostin, the prevalence of extreme valuation is not as common in 2021. >> not in terms of the number of stocks that seem like they're at extreme valuations. >> they look at ev to sales in this case. >> the aggregate market cap in

those types of names is pretty close and yeah, all these different ways to slice it and again, i think that in a way we should welcome all the chatter about bubbles because bubbles are so rare and they mean such a specific thing and as soon as people start having fun in the market and robinhood shares go vertical but on a three-year basis still way down, people start to i think over anticipate that moment where it's time to be afraid. >> i was mentioning the sentiment and positioning data while getting very bullish, not necessarily at extreme. >> it's not all the way there. >> there's no predetermined place it has to get to before we have a pull. we're due for something, a random drop a few times a year. we haven't had one in four months. >> mike, thanks. we'll talk in a little bit. speaking of some of that let's turn to crypto. bitcoin prices hitting two-year highs as the crypto moves closer to its all-time high around 69

k. investors cautious going into the month of march. historically bitcoin has fallen six of the last 11 marches. notably falling 25% in 2020 ahead of its last halving event set to take place this spring. worldwide asset exchange william quigley with us. i wonder, this is another story where there is arguments on the speculative side, but also on fundamental analysis of at least money flows. >> yeah. i agree. if you look at where we are prehalving, that's going to happen in april where bitcoin's reward for miners drops by half f we look at where we are versus the last one, i'd say -- which happened four years ago, we're in better shape. we didn't have the etfs back then. if you look at things like tee risktive volume, it was nascent four years ago. now very high. we've just hit a record.

and the etf flows have actually surprised me. i was a little skeptical that they would take off quickly, and now we have close to, i want to say, $50 billion, about 740,000 bitcoin, held in these etfs. daily we're getting between 150 million up to $500 million flowing in. so there's a lot of positive forces that are pushing bitcoin up right now, and this is before the halvening, which is usually after that fact when bitcoin really sky rockets. >> how do you describe to viewers the mix of institutional versus retail interests, vis-a-vis prior rallies? >> oh, anything from like pre-2020 there was very little institutional interest in bitcoin. it was a retail-driven, globally retail driven phenomenon, and

now i would say there is a lot of institutional money that tracks it. it's also why you see such interest in derivatives. the volatility in bitcoin i think is one thing that really attracts a lot of institutional investors. you have to understand that, you know, bitcoin is maybe the only globally traded asset that i know of whose demand is purely based on sentiment. you know, there's not a bitcoin company. there isn't bitcoin price earning ratios it's just a sentiment driven token. and what you can say about that, of course, is that sentiment has no limits. you can always be more optimistic. so this rally may be the biggest we've seen. if we just look at where we stand today, pre-halvening for

bitcoin and look at historical patterns, that would suggest, i'm not predicting this, if you apply the historical patterns, it would suggest bitcoin being in excess of $300,000 at the peak of this next bull market. since all tokens are correlated to bitcoin, that means that all the other tokens, like ethereum and solana and some of these others, will move up in lockstep. those, however, usually move higher. directionally the same but since they have a lower market cap they tend to move up to a greater degree. >> what about tether? i know that your price doesn't move up. you're tied to one to one, but there's been a lot of interest and i saw that you passed the $100 billion market. i think it's the first stable coin to do that. what is driving that? what's the significance of that? >> yeah. first, yeah, it is the first stable coin and so, therefore, it's -- and the biggest.

the tether is the -- is the entry point for acquiring bitcoin or any other crypto for all the institutional buyers. most institutional buyers first acquire tether and then buy bitcoin because virtually all trading pairs that have any sizable volume with bitcoin are matched to tether. tether is the way you acquire crypto. so when you see the tether market cap going to $100 billion, what it's showing you is there is a lot of anticipation of people waiting to get in or getting in right now, not just through etfs, but buying actually on the exchanges. i should mention, you know, the exchanges only have less than 10% of all bitcoin that's ever been mined. so there was a day not that long ago where the etfs acquired ten

times in that day the amount of bitcoin that gets produced in a day. there's only 900 bitcoin acquired in any given day. next month that will be 450. so if this volume of buying keeps going on the etfs, supply is going to be constrained, which, of course, is likely to affect the price. >> definitely a far cry from 20k, which is where we were roughly a year ago. >> that's right. >> we'll be talking soon. william quigley. >> all right. still ahead this hour, a look at one metric showing the consumer still spend, but not everywhere. tethbrk.ils of a new survey afr e ea (♪♪) access to opportunity isn't always equal. but at the massmutual foundation, we believe tha— you know, it doesn't really matter what we believe.

what matters is what ruth, marcus and michelle believe. that kendall believes he has a say in his future. that these neighbors believe there's opportunity in their neighborhood. at the massmutual foundation, we don't believe. we know things get better when we invest in each other. (♪♪) the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. the all new godaddy airo. put your business online in minutes with the power of ai. you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

is

po, you need to bring peace to the valley. [ choking ] the chameleon is nothing like anyone you've ever faced. she is capable of mimicking any shape. awesome. i mean it's disturbing, but it's awesome.

. big tech company pfizer out with its latest pulse of small business. the small business index data for february shows consumer still strong, sales up 6.6% from last year and restaurants and drinking places seeing spending increases. joining us is frank misszano. good to have you on. there were questions about the consumer after a strong holiday, weak retail sales in january. what are you seeing now? >> what you saw and what we talked about in january there was a weather effect and you can see in retail foot traffic definitely is helped out in february. i think you saw it expand across the board. and so, you know, as we had thought very well could happen, the consumer would be -- the consumer would be back and spending and the early effects of january. and the year over year increase

you would feel. i think the consumer remains strong. >> what i love is it captures small business spending and we get a little bit of that with the sentiment report, but you're really going deep into the small business world. restaurants were strong. what other categories stood out for strength and weakness? >> retail. i mean sales across the board, retail, wes a saw it in trade contractors. i think what's important to recognize given our size and scope, 65% of our volume is smv. i think also this is capturing more than card services. it's capturing cash and check. >> so strength in demand, but what about other issues that have plagued small business? inflation, cost of capital, access to lending, real estate. are all of these still headwinds? i think we lost your shot. do we have it. we lost it. frank, we'll try to get you back

on. >> usually he comes across the street and sits with us. >> i know. >> that's what you get for being remote. >> we'll get him on the other side of this break to talk about small business up from fiserv. shares of ferrari, citi goes to sell saying they would quote struggle to justify shares trading above 400 euro or around $433 per share. more on a different auto name after the break. tesla as concerns continue to grow around the company's china exposure, shares a big laggard down almost 23%. don't go away.

chairman and ceo frank missno joins us on the phone. sorry about the shot. next time we'll have you at snooinz it's easier when i'm there physically. >> agreed. we're glad to have you on the

results of the small business survey you do and you said that consumers are spending again. good news in february. what's happening with small business and access to capital lending environments? it's a trend we were watching all of last year as it was tough. >> well, i think there's demand and, you know, i mean, in the payment flows, it's always very simple to be in allocating capital to the business. small businesses are showing the need to access capital, and i think that they have good access to it in many different ways. they are continuing to drive their business very, very well across the board. >> where do yousee the risks and challenges most acutely in small business right now? >> well, i think the biggest issue is the strength of the consumer always. that's going to drive it. i do think that they will

continue to invest in technology. we see it. we see it in increased software sales to them. as they're continuing to think about how to drive their top line, and manage their bottom line better than their largest component or what they procure. and there are people costs. so, there's great opportunity for them to grow and great opportunity for them to continue and manage their business is better. >> we talk -- go ahead. >> speaking of people cost, i wonder if there's anything in the data or maybe something qualitative that can help employers, small employers are thinking about hiring right now, especially in front of a big jobs number this week? >> well, i think the hiring is robust. i think they're thinking of managing the expense line. of course, talent management is the number one thing you can do on any company. and continuing to automate a lot of the work that just makes

their people more productive. that's where we come in with clover in a lot of cases. how we use many of our applications that help them manage everything from the amount of time they allocate to their people to how they run their shifts and the like. >> that's what i was going to ask, when generative a.i. is going to make it into a small business and make them more productive. we talk about it every day for big business. >> yeah, i mean, we view our job across our banking sector and across our small business that we need to be good for them to manage their businesses. that means we're investing in a.i. to bring to them -- you've heard me talk about for our financial institution business, where we brought a lot of knowledge to it. we're doing the same with data and insights into our small business and we'll continue to do that. so, we really need to be the operating system for these institutions.

>> it's a greatsnapshot of small biz and consumer. frank, thanks for joining us. we'll see you in person next time. >> thanks for talking. >> frank bisignano, chairman and ceo of fisrv. >> if it moves, phil lebeau covers it. today there is plenty to cover from deals that are not happening, such as jetblue and spirit, to deals that might happen, not to mention sales numbers from the likes of ford. phil, take it away. >> david, let's start with the airlines. first of all, the news that came out an hour and a half ago. not a huge surprise. spirit and jetblue calling off their proposed $3.8 billion merger. you see the two stocks. not surprisingly, jetblue moving higher. spirit, there will be a lot of questions about the future for spirit. especially what this comes down to is how much will each of the airlines would it have cost them and why did they decide to throw in the towel at this point.

the doj blocked the proposed merger so as a result they wouldn't be able to complete it by the deadline of july 24th, even with expedited appeal. you have jetblue paying spirit $69 million. there's no breakup fee. remember they had that monthly dividend they were paying spirit shareholders until it went through. all together that cost them $425 million. if you look at jetblue, yes, the stock is moving higher. the challenge for them and focus on airline, boosting revenues. we've heard from new ceo joanna garrity that her focus is driving greater revenue growth. as for ted christie, who is the ceo of spirit, the focus is going to be on debt levels as well as how do you cut your costs? people will be saying, they're going lower and lower, they were losing money. it's not the end of the road for these guys.

i want to remind everyone that coming up in 40 minutes from now, we'll be talking with american airlines ceo robert ison. we'll get some sense of their outlook in terms of as they look at 2024 and beyond. haven't really heard long-term what they see for the company. that's what we'll be doing in about 40 minutes. >> phil, david mentioned how busy your beat is today. you want to talk about china data on tesla and u.s. data on ford? >> with the china data, that comes from the china passenger car association, we're looking at what we saw last month as well as what was reported. the thing to keep in mind with tesla is it's the lunar new year in china. you have to take these results on a monthly basis in terms of shipments with a grain of salt. they're the weakest since december of 2022. down 16% year-over-year. 19% compared to last year -- or 16% versus january.

19% versus last year. quickly with ford, 10.5 increase in sales last month and hybrids are the story with sales jumping more than 31% compared to the same month a year ago. we talked about it before. hybrids are in demand and ford is leveraging its ability to increase production of hybrids. >> phil, you introduced our audience to the you ubiquity of being made in china and chile. the todayste sroadster is expec quickly. >> it's the next generation model. that's where the growth is within evs, you have to get the price point down closer to $30,000. i know there will be people that say with the incentives and so forth, model 3 you can get it close to $30,000. you have to bring it down even further. that will be the vehicle that they're going to be ultimately building in mexico thousand i

think initial production will start in mexico. >> thank you, phil lebeau. the ceo of american airlines after the break, our live market coverage as well will continue with all the major averages down right now. but nvidia shares are up 3.7%. we're back after this.

there are some things that work better together. like your workplace benefits and retirement savings. voya helps you choose the right amounts without over or under investing. so you can feel confident in your financial choices. voya, well planned, well invested, well protected. investment opportunities are everywhere you turn. but at t. rowe price, we're letting curiosity light the way. asking smart questions about opportunities like advances in healthcare. and how these innovations will create a healthier world tomorrow. better questions. better outcomes. you know 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! power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley.

good monday morning. welcome to "money movers." i'm carl quintanilla with sara eisen on the floor of the new york stock exchange. today the ceo of american airlines ahead of the company's first analyst day in seven years. plus, it is one of the most rate-sensitive sectors. the ceo of solar is joining us. and then apple is lower again. we're going to look at how the company is trying to change the narrative around its future by pivoting to a.i. is wall street going to buy into that? >> stocks taking a breather this morning, despite bank of america and ubs coming in with higher targets for the market. 5400 yeaen