well. >> fab four, we can't use fab four. >> you possibly can't. >> paul is always the cute one, wasn't he? do you remember? that's what they always said. >> my mom liked george. >> george was very talented. miss him. way too young. friday, tgif. we'll see you monday. make sure you join us. "squawk on the street" is next. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer. the jobs number for february while a beat at 2.75, ten-year drops to 4.04 and june cut is fully priced in. road map begins with getting the fe fed's tension. what it means for the fate of rate cuts.

>> we're always keeping an eye on tech. for example, apple share, can they stem what has been a seven-day slide? chip stocks, though, continue to outperform. and the other big story, that weight loss boom and novo nordisk overtakes the market. market reaction to the jobs number, not just the headline and the unemployment at 3.9 but revisions taking about a third away the last couple of months. >> i think those of us who are used to the precision of artificial intelligence and generative a.i. are just in shock that there could be a number that's this far off. this is the kind of thing that jensen huang could solve with his eyes closed. why it's so important, this takes away what was the hot number that made us a great threat and took away a spring rate cut.

3.9. we know they remind me of the dow jones average. very interesting headline, but it's not really what's at the guts of this, but in a political year, what that says is, hey, look, the economy is slowing and maybe the fed should have pressure on it especially since the state of the union which was about walking the picket line. >> isn't this a good number from the market's perspective and the economy's, almost a dare i say goldilocks. >> i was going to say erfect. it's funny. >> you're still strong. wage growth is not that big. you got the revisions down to your point about sort of, you know, at least no overheating, so to speak. >> if you're a fed chief you probably spent all your life trying to have this economy. the economy without a lot of inflation that has good growth and i know i heard people talk about soft landing versus hard landing. it was very clear that that's a false dichotomy for me.

powell is not talking about landing but having con cons sistent growth. he's not about, i got to cool the economy, he's about having an economy that's the greatest equal to the greatness of our country. and i think he's been slagged by pretty much everybody and maybe that's where he's really happiest. >> there is a the headline, really the words not far from enough comfortable defense. that's what got "the journal's" testimony. >> we had the full coverage other than senator warren, a firebrand and you go back in time, other than that, geez, you know, david, i was able to catch -- i think i caught a 45-minute nap. >> oh, no. >> i was tired. i had done an all-nighter the day before. >> two days with powell with all those politicians is two days too many as --

>> the alarm function on this thing where if you wait, it comes on a second time, that was important because i think that -- a senator from ohio who i will not mention once castigated me, he was really worth taking a nap through. i didn't mention his name so didn't have to worry because sherrod brown would know the difference. >> chairman brown. >> chairman brown, the book i read at the advice of howard schultz, vance, "hillbilly elegy j -- >> he's not a stream of consciousness guy. any other thoughts on the jobs number before we move on to some of the stocks? >> maybe this is the number you've been looking for to buy the semiconductors. >> has nothing to do with it. some people are concerned about the momentum that we continue to see in some of these -- >> they should be.

>> even though the underlying fundamentals arestrong. >> no one has ever seen a stock -- you come in and marvell and i don't want to pick on mu murphy. but the call was down except for one part of optical with a.i. and the stock was down ten and finished down four. in the middle of the conference, the stock was down 40 and mentioned there will be 10 billion in a.i. >> versus 7.5 prior. sien si si sienna -- ciena was the other. >> look, there's companies in that business, at&t and verizon have spent their years trying to not spend money and people keep waiting. don't look at the symbol. it's much more of a work of literature but i like to keep him up these days. >> no, i know. i'm okay on --

>> i'm all right. not great. >> i just find that if you mention a.i., this is the problem, if you mention a.i., within anywhere involving your company, it's just a license to have your stock go higher. i think, david, that's what i think is -- carl, we've had these types where i remember in 2000 where there were company, great company, companies like worldcom, they were doing fabulous things. >> yes, there were. i would not in any way compare what we're seeing today with what ultimately was to a certain extent of their business fraud. >> no, but i think -- >> at all. >> edward r. murrow's piece on senator mccarthy and at the gym with bernie -- >> there were definitely moments there. >> must be your birthday or something. >> i efficient that but back to the semis, i mean, listen,

nobody or few people doubt the power of this moment in terms of a.i. and generative a.i., what it's going to mean but doesn't mean the stocks may not be a bit ahead of themselves when, again, starting to hear sort of i'm a little -- some concern about just this momentum train we're seeing. >> ben rice from melius was talking about, don't write off amd. if you look at their chart, nobody seems to be writing it off. >> he hikes his target by 70 bucks today. >> i know, and i sent him a quick email saying congratulations because he does have a beat on things. i'm going out to see jensen and making the pilgrimage, at the same time that larry williams who has been right more than wrong saying that will market the peak in the nasdaq and wasn't aware it was coincident with what jensen said but the early look at what jensen said is he's talking about verticals, not just talking about verticals.

>> all right, this is not next week but the week after that. >> yes, yes. >> that you'll be out there and that we're going to get this keynote, which we get every year. >> well, but this is in person. >> in person. what's in person? he's in person? are you going to interview for him as well, do you think? >> oh, yeah. >> good. >> what's important, david, this is a person when he shows up anywhere, whether it be with hp, whether he be with -- renee haas is very close and worked together. >> at nvidia they worked together. >> you just find people say sell everything and buy this. i mean, they're like -- i don't know how there's enough money with the 5% on the sidelines unless it's coming out of apple. >> which it has been. there's no doubt about that. that stock as we said down some seven consecutive sessions. >> that's a very long time. >> as we come to end the week,

concern about a sales of iphones in china which represents as much as 20% of our sales, concerns about their strategy when it comes to generative a.i. and when they're going to -- we are obviously waiting and there's this air pocket between now and june, let's call it, when we pay get some news. dropping a couple of hints. >> but, now, david, the one thing i would say, we've had some defense coming out, a note this morning about how apple may have some good service revenue but, again, what people want to see is a phone that's equal to the samsung phone -- >> it's going to be a while. going to be quite a while. >> well, but during the interim it's not like this company is a pitiful helpless giant. >> no, no. but that doesn't mean that it's going to be something that excites investors. >> no, no, look -- >> or sees some leg of growth, again, to look back, jim, we're not talking about a company that's seen a lot of revenue growth at all. >> seeing revenue declines. >> thank you.

>> i've been saying to the club, let it go down to 160 but there have been so many careerss -- periods in my career, even when steve jobs passed, there were periods where you said it's over and this company has giant lulls. i do believe nvidia can pass it which is pretty amazing. >> you think nvidia can add another trillion. >> it doesn't even need to done farce. >> apple has taken care of the downside. you're right. >> remember, nvidia's enterprise so people don't see it. people go apple and there was a great hoopla for the vision pro and that went away -- >> it's less than 300 billion market cap discrepancy. it's funny, you're right. >> i mean it's a giant crevasse or as you would say a little offsides head and shoulders. i stay away from technical lulls. >> you think it could move into

the number two position in market value. wow. >> nvidia was a $100 billion company five years ago. >> what's fascinating the intention paid to jensen's stanford remarks where he talked about washing dishes and cleaning toilets, i've cleaned more toilets than all of you combined. the humility behind this powerhouse. >> the denny's period, not everyone has had a denny's period. substantial time spent both washing dishes there but coming up with the next generation design, talking about 1992. this is a long time coming, but he had this view for the h100 ten years ago, he thinks differently from us. there was a guy used to be in the top seven that was a very visionary guy, want to say my name is mon tayo -- >> elon. >> he left "criminal minds"

because -- >> you mean mandy patinkin. >> he's in some new -- >> is it him or netflix series. >> he's excellent. the reason i mentioned it, david's unbelievable interview. >> thank you, we referenced indigo montoya, he misquoted him. what's your point about elon musk? >> i think that mighty fall. i mean, there was just not that long ago that elon musk was the richest man. now bezos -- >> you think he's fallen. >> no, because there's other things -- >> has a $570 billion market value and spacex is basically the only thing that can get things out to the atmosphere. >> musk is brilliant but what's happening with letter x and read the trunk indicated emails for sam altman you have to say this man is a tad distracted, plus, what, a billion dollar arson in

germany and chinese cutting the price of cars. i use the term an -- >> stocks are flat. tesla shares yesterday, lowest level since may, jim and jonas' note is interesting. toyota, he wrote, which has zero exposure to battery evs is going to gain more share in this country than any other -- >> look, foye has the possibility of the miraculous ten-minute charge what we're all waiting for. >> the ten-minute charge. >> ten-minute charge. >> well, look, this is a high-stakes game. >> is that a super energy drink. >> like 5-hour energy. >> part of the hostile takeover that took the street.com away from me after 25 years. >> what was the connection between 5-hour energy -- >> they now own it. >> same guys? >> that's it. >> david, the synergy there and artificial intelligence they use

to find reporters makes me food good. >> as you should. >> one of the great periods of my life -- a quarter of my life was devoted to giving people health care. that's what i concentrated on apparently. at the admiral care plan. we haven't talked about united health and the altman hack. >> no, we'll get to recent calls on unh and talk rivian, gap, which jim had on last night and costco goss -- got news and we'll talk about that. 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! [sfx: wind, rain and rolling thunder] nobody's born with grit. british announcer: rose is really struggling. it's something you build over time. american announcer: that's 21 missed cuts in a row. [car trunk slammed shut] for 88 years, morgan stanley has offered clients determination and forward thinking to create the future... crowd: stop it! ...only you can see. american announcer: rose, back in the winner's circle. [crowd cheers] [music out] they're waiting for you. hey, do you have a second? they're all expecting more. more efficiency. more benefits. more growth. when you realize you can give your people everything, and more. thank you very much. [applause] ask, "now what?" here's what. you go with prudential to protect, empower and grow. with everything you need to deliver, you guessed it... more. one more thing... who's your rock?

learn more at prudential.com whoa, how did you defeat them? who's your rock? 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!

we exceeded expectations beth top line and bottom line. we gained market share and all of this has been driven by the strength in our two largest brand, but the efforts that we're making in operational and

financial rigger, that's what's showing up in the numbers. >> that's gap's chief richard dickson with jim last night on "mad money." it helped buy improving trends at old navy and flagship brand. different at costco moving lower on the revenue as customers pulled back on spending, company beats on the bottom line had strength in e-commerce. there's a name where the p/e has gone from the 30s to mid-40s in a year. >> yeah, i want -- there was a characterization of some weakness there, and i think that people are caught up in the facetious nature of the unbelievable cfo, congratulations, rich, ret retiring -- people thought he would go out with a membership price boost which 90% falls to customers and 10% to the shareholders and did not do that. that was going to be his swan song. i thought the quarter was excellent and see good discretionary spending.

the chinese scores do well. let it come in. just paid a great dividend. there have companies that have done so many great things that when it come in so hot, it just doesn't matter what's said, but the people should -- it was extraordinary, and all the stories about it did not mention the fact they didn't give the price boost which is what we wanted, and they did talk about doing advertising, what walmart is doing, that will help them. that's free money. >> although they don't have nearly the online presence that walmart does. >> no, because they want you to go to the stores. they want you to go to the stores. >> which is where the advertising is important. >> people have to understand historically he is a wry man so he's not -- people think he was saying something negative. that's because they don't understand him speak. this is an amazing man and he will be so missed as the cfo because he did not suffer fools

gladly. >> if you look back any period of time there's rare instances where the stock has declined for an extended period. >> this is now the longest period this recent years that they haven't gone through a price increase in membership so people thought this would be his chance to do that. >> that's just beautiful. >> that's a real disappointment. no membership boost and just a matter of time. $15 special dividend impressed people for about five minutes. >> it's been, yeah, trying to think, we did our documentary in 2013 where we got to know it as an annuity is what it is based on the membership -- had some talk to us about the things they can do on the -- >> i'm not saying that they are oblivious to technology. they like to come in after --

they don't like apple. they have it right. but in the end, david, when i was there, and we talked about what was underpriced but the seminal moment, the lock spread. >> really? >> the free lox spread and gave me a plate of lox so big, we consumed it like we were dogs. >> nice. that's great. great to know. >> well, i just give you a little color. >> i appreciate that. >> there are some great -- that was pretiktok because at that point we still weren't -- we were using selfies. >> we got to talk about tiktok a bit as well. obviously its owner, bytedance, not a public company but an enormous company. >> do you sense there's uniformity on that one issue in commerce? >> it feels like that plan backfired in terms of the pop-up that came up and call your congressman kind of thing. >> that seemed to overwhelm. system. it wasn't "mr. smith goes to

washington." >> 50-0 was the vote in energy and commerce on this measure we think will hit the house next week. other news on meta as well on downloads and get cramer's mad dash and back in a moment. rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. 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. (♪♪) 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.

take a look at nasdaq 100 gainers, nvidia up another 3% a day after the semis relative to the s&p finally exceed the high of march of 2000 powering forward with intel. opening bell coming up in five minutes. don't forget, catch us any time anywhere listen to and follow "squawk on the street" opening bell podcast.

[thunder rumbles] ♪ ♪ ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently.

it still does. what can you do with spy? ♪ ♪ [thunder rumbles] ♪ ♪

>> announcer: "the opening bell" is brought to you by nuveen, a leader in income, all search tiffs and responsible investing. all right, let's get to a mad dash before we get started with the trading. eli lilly move often glp1s but have talked about their treatment for alzheimer's potentially. >> yes. >> there was some news, jim. >> it was not good. i was saying -- even running ads for it saying lilly has been saying this drug, their alzheimer's drug would be approved this quarter and expected it. there is a surprise delay and it's because they want to

convene with outside advisers and does surprise me for the work i did as the chief spokesperson for the american brain foundation, i thought that was a given. that was wrong and i think what happened here, this is a very big drug, people think you can do as much to arrest plaque in the brain and call is disconcerting because i didn't feel it was a given. >> now we're going to get a meeting of the peripheral and nervous system's drug advisory committee to discuss the phase 3 trials and those phase 3 trials enrolled 1,736 participants across 8 countries, and to your point it showed that particularly with patients in earlier stages of the disease experiencing very strong results is the way lilly puts it. >> that's the surprise. >> and tons of benefit. >> yes, and i think it's important to point out this was not a criticism which would have set it back.

it's much more of a we have to do more. now, i think one of the reasons, david, they really have to have this down because everyone in america who has anyone with alzheimer's, a parent, they have to have this thing down, so i still think it's a pass. >> let's get a look at the opening bell at the big board, state street, global advisers celebrating international women's day having done a little event at the girl outside on -- outside the exchange. >> enjoyable tourist spot. and the bull that i think because it's kind of a great symbolism of some of the hope that we all have that more women get involved on the street. >> yes, at the nasdaq the muslim american leadership alliance. one of the notes out of goldman talks about even though a lot is -- a lot of water is being carried by meta and nvidia, tony

p. does point out industrials up 8 for the year, health care up 8 for the year. >> i think that's very important and 50% of the industrials are trading at their high. last night the president spoke about the reindustrialization part and that's the sweet spot. i think that the -- look, if you want to know, i've been -- you know i love frank holland's show in the morning. he had the ceo of westco. that company had been left behind, an infrastructure company and doing miraculous work. david, if you want to know who's got an incredible reindustrialization thesis in terms of the grid, it is a company that jpmorgan upgraded. >> the ge? >> it's going to be completely separated has a division with wind, it's got natural gas turbine but has the grid and the

grid is in terrible shape and the data centers are causing a 5% increase a year in the need for electricity which hasn't happened in, i don't know -- >> we have an enormous need for electricity if we are going to continue to build data centers filled with nvidia chips and networking equipment from the likes of broadcom. >> marvell. >> and marvell that ultimately powers of a.i. models out there and anything to come. power is the gating issue. >> yes, it is. thank you for saying that. >> when you plan a new data center because i have been talking about this a lot,i finally also have been speaking to people who run these companies, and you have to -- the first thing as i said the other day, the first thing you have to do is make sure you have the power. >> you know what's next. >> before you put up anything up. >> then scope three. these companies are demanding that there be no coal involved. one reason why constellation energy -- it's a remarkable company. that's the spin-off, remember, they -- they split it off and

constellation energy is one of the greatest performers because they are nuke and nuke is, of course, the answer, but their five, six-year -- >> you're right. we may, in fact, start to slow down our deployment to a certain extent because we're going to run out of power. i know it sounds strange to say and always find a way and perhaps we will but that's a genuine concern? have you heard about the scale of the hyperscalers to perhaps build their own power plants and get involved because they don't think they can necessarily trust the people who are involved. you know, carl, a lot of these companies, they're sleepy companies. they provide the 2% electricity perhaps and then there's the companies that really do recognize, next tracker which has software that allows to you have solar -- it really works. they believe that solar will be 25% of our power but we know it's intermittent but i have found, for instance, aap a company i count on have gone

totally silent since their ceo mysteriously left the company. i've called almost everyone involved in the situation and it's almost like it's the manhattan project. i can't find out what happened there. >> i'm thinking of the great paper this week by what would have happened in europe if they hadn't decommissioned nuclear. what happened if we ran into huge nat gas interruptions here and the difficulty it is to shut down a building, clear it, and then fire it up again. that's weeks. >> oh, no, it is. enbridge, greg used to be at spectra, number one oil pipeline now, gunning to be the number one natural gas after buying the dominion properties because dominion's stretched balance sheet, and the importance of both for domestic, for power and, of course, for national security, amazing, but the president has pretty much kiboshed by using that 2028

pause cautioned a klein in natural gas to 1.70 because people don't want to -- people say, look, we don't have a place to put this stuff. >> you'll need natural gas for powering a lot of these plants still -- wind and solar are great but can't always rely on them. and the -- he's written a couple on the energy transition, comes back to the idea you need to put a price on carbon which doesn't appear it's going to happen. >> think he is most involved with energy at jpmorgan in terms of watching what -- >> i don't know, who. >> jamie. jamie dimon is -- look, i know i've had my go-arounds with jamie but he's the guy who speaks to jensen. he works with semblist. he is a central spokesman for industry but perilous times.

>> can we move back to broadcom -- >> matt murphy is so great. >> one thing i want to discuss, gap versus nongap which we talk about and obviously they're judged to a large extent on revenue growth and that moves things, but, you know, when you look through to the income statement and what shall restructuring related charges and amortization and legal settlements and other special items, i mean, marvell would have -- lost 392 million, instead they made 401.6 million but broadcom explains why they feel like nongap is a better way to view these things but it's still worth noting. >> this company, the chairman of this company used to be rich hill, rick hill. he doesn't allow any of this stuff and set this company up to

be as conservatively run. matt murphy did not cause this rally. >> you're not worried about just the huge differential between nongap and gap? >> no, because -- >> going from losing to 400 million to making 400 million. >> matt bought this business and didn't realize it backed into this optical business that is so good. the street is driving this. i think that -- the -- i hatch to think the financials are solid but if you really want to know rock solid look at what hock tan delivered? >> again, the differential between gap net income of 1.235 billion and nongap, 5.24 billion is enormous. >> do you think acquisitions placed a role? >> of course they do and it excludes amortization of ago question since related intangible assets, restructuring, other charges, acquisition-related charges, nongap tax reconciling adjustments and other adjustments. management does not believe these items are reflective of the company's underlying

performance and internally niece nongap measures are significant used for management for purposes of evaluating the core operating performance. >> i don't want to be duplicitous. >> that's why everybody listens. >> everything that david said is the problem with silicon valley because these numbers are not apples to apples to any of the eastern companies so i totally get where he's coming from. >> costco is just pretty straightforward. >> costco. >> here's what we make. here's what it costs us and here's our earnings. >> people on the call who question rich on something and rich is, like, let's take the next call saying you don't belong in this. you flunked. >> he will be missed. meantime, jim, stories on the tape about huawei's innovation -- >> on the backs of -- >> it's due to use equipment that china has gotten their hands on. >> i know. he sold that to novellus. look, here, they did comply with the old rules.

there's $2 billion of business that lamb lost that lrcs lost to china, so it's not like they're -- david, they're playing by the rules, but the rules came in a little bit later and meanwhile, huawei has the knockoff phone and, david, see that. >> yeah, wow. >> this is where the intellectual property lies. this is how you make the stuff. we could talk about taiwan semi all we want. if we look into them, what do they have? they have american intellectual port and this is -- the government correctly doesn't want this company. if we want to block as -- they make accelerated computing. they make generative, so -- >> right, it's their equipment that taiwan semi puts together to obviously do a better job than anybody else in terms of -- >> remember, lam -- this is a

battle between jensen huang, moore's law is dead and we should have pat on right now because he's saying it's alive and well. >> you want to put up a 20-year chart intel versus nvidia and see who won that battle. >> 1989 to 2002 chart. sorry, 2000. >> even ten years duly. all you need is a ten-year chart to show who won that. >> it's a remarkable company. >> we're talking -- there it is, see, you ask for it. you get it. that kind of tells the story. >> what is that? >> up 20,000% and the other is up 86%. >> wow and you see that -- right wherethe dip was, that's when everest for nvidia -- changed the direction of the stock. >> you talked about china. we mentioned it, but it's worth perhaps coming back to as well, this potential tiktok ban yet again if you recall at the end of the last trump administration, there were all sorts of plans potentially to

bang tiktok, to force it to be divested by its owner bytedance and there was a potential microsoft -- >> oracle. >> a walmart bit, none of which came to fruition. all of which was hard to figure out completely. >> it was, it was convoluted is the way i look at it. you didn't mention general atlantic. >> general atlantic, of course, as -- >> yeah. >> but, you know, a lot of these tiktok users got this notice or all of them saying stop a tiktok shutdown and many who are younger called congress even though they don't know what congress is sadly. >> right. >> another failure for our education system perhaps and call congresspeople that they don't really know what they are but saying and then the congresspeople have reacted not well. >> there's a lot of congresspeople, so there's a lot of phone calls. they googled that. they didn't use chat.

in the meantime, can i say david killed marvell in broadcom. >> i didn't kill them at all. >> i have to speak to matt murphy. you killed it. >> gap versus nongap which we all take which is fine and adjust ebitda, another measure but you got to remind people what is part of it and what is not part of it and certainly for a big acquirer such as broadcom, acquisition-related costs, are they really not a part of their ongoing business. >> it is, but, david, if they hadn't mentioned it obliquely jensen huang, the stocks would be down very badly. this is jensen huang versus david faber. >> no, it's not. back to bytedance quickly. the owner of tiktok is valued at about $270 billion on its last round. >> are you sure? >> yeah, 270 billion. >> geez. >> and you know who owns 15% of this? susquehanna. >> susquehanna, the trading

firm. >> smart guys out of binghamton and came to philadelphia. >> made the investment a long time ago. >> delightful. >> $5 million investing round in 2012 when bytedance was formed. 15% of bytedance, it's a 270 billion call it value. maybe less if this tiktok ban really does something really happens there. by the way, tiktok ban happens, snap, meta, i mean, think about all the beneficiaries as well. >> look, i'm going west in a couple weeks and you just know, periodically you hear somebody say susquehanna, they tend to be mathematicians in the east, computer scientists in the west and it matters. hey, by the way, there's a positive piece about youtube today picking up some advertising off of this. youtube, that's alphabet. it's been a while since we heard anything good about them. >> a big piece about instagram overtaking tiktok in app

downloads at the end of year. some were tying it to threads which you do need an instagram account to fire up some threads. >> i saw someone go on to threads and make a point of it. i thought that was very good, carl. look, one of the unsung things that cnbc that the zuckerberg relationship with jensen hong, 350,000 h 1. s bought, total of 600,000, this is to make it so that the feed is -- everything goes so fast. >> those kids who wrote that they have a drinking game that they do every night based on how many times you mention jensen will be so completely trashed. >> then why is the numbers from jack daniels so bad from brown -- >> i don't know what they drink. >> you know what's the biggest decliner in double digits, casamigos from george clooney. >> what happened? >> people have gone away from tequila a little bit. >> why? i think it's too sweet. >> are they moving to mezcal,

jim? >> bloomberg piece, there is a mezcal piece this week that basically says the transition from tequila to mezcal is running at basically accelerating computing speed. >> there's been pieces about where you're going to get your raw material in five year. >> that's why we had to go to pueblo because waugh oaxaca is of -- my wife is in pueblo, 2 million plants there. we just need to have 2 million people drink. >> we talked about the impact of cannabis in states where it's legal on alcohol and now, jim, you mentioned golp1s. >> very soul searching call saying, listen, we can see no correlation between cannabis and this, and they deny gop-1 but

they raised price. the browns as we call them are too expensive. they have to cut price and then there's the ageless envy -- >> delicious. >> what? >> angel's envy? you don't like? >> in the morning. no, i happen to like the taste. the problem is that there's this whole class of them, woodford reserve, they all taste fantastic. high west i like, but, david, that's probably not -- you probably have celsius, what a stock. >> used to be dow chemical. i think they gave the chemical to to celsius. i have a pallet in my office if you want -- >> of celsius. >> there's a look at dow for some reason, so thank you for that. >> it's got a big yield. making a good comeback. doing a good job. >> speaking of movers, we mentioned briefly but should come back to rivian.

it's having a nice morning so far, up some 6.5% on i guess -- a positive reception to the rollout of the -- >> with a tweet just now saying that in less than 24 hours we've taken more than 68,000 reservations for the r2. >> good, because i was going to go to that factory when it opens in georgia. i still intend to do so but i can't go -- it's on the csx railway. those guys know what they're doing but, david, have you driven the rivian? >> no. >> go to brooklyn with me, of course, my wife because my wife, i drive awfully. it's so great. >> why? >> because it's -- well, it handles much tighter. it handles like a bmw. >> really? >> yeah, it's got that tight handle. let's see if steve at hertz takes some down -- >> i think he will stay away from these for awhile. >> kind of a blow for the georgia economy as well. this was the second biggest --

>> i know. i committed to going to it. i'm not giving up. i think they do have the amazon backing. the thing is really beautiful. it is just -- it's a great ride, but the thing is we're in an uncertain time because of the envy for the ev. >> volvo. meanwhile, markets are doing quite well. i would just end on that with the nasdaq up almost 0.6%. shares advancing another -- >> let me see if there's more homicide by david. >> $3.8 trillion market value and shares of apple out of the game. >> you've got marvell down 7%. i'm calling matt murphy saying you sent an invitation to his funeral. it's ridiculous. >> we got the jobs number, of course, williams was earlier this morning. ten-year did go to 4.04. that took you back to february 2nd and bounced since.

david is right, 5180. s&p all-time high. don't go anywhere. to build the electric vehicle of the future, you need partners. mining partners. technology partners. education. supply chain. energy. what if one partner could do it all? that partner is ontario, canada. with all the critical minerals to make electric vehicle batteries. 65,000 stem graduates per year. one of north america's largest i.t. clusters. a fully integrated supply chain.

all powered by one of the cleanest grids in north america. ontario. your innovation partner. ( ♪♪ ) want more from your vitamins? get more with nature's bounty. from the first ever triple action sleep supplement, to daily digestive support, to more wellness solutions every day. get more with nature's bounty. (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 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! .

big question for the market is whether apple can find some legs here around 170 after being down seven straight days. that hasn't happened for several years. and versus the s&p 52-week low along with names like tesla. >> it's been quiet. it's hard to get a read on that. >> meantime dow up 126 in itspe of that behemoth in the red. stop trading with jim is coming up next. that you and your family need. i promise to put your long-term financial well-being above any short term transaction. everyone has a big picture. my job is to help you invest in yours. [announcer] charles schwab is proud to support the independent financial advisors who are passionately dedicated

to helping people achieve their financial goals. visit findyourindependentadvisor.com [♪♪] your skin is ever-changing, take care of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond. only at vanguard, you're more than just an investor, you're an owner. formulations of 7 moisturizers and 3 vitamins. our financial planning tools and advice can help you prepare for today's longer retirement. hi mom. that's the value of ownership. they're waiting for you. hey, do you have a second? they're all expecting more. more efficiency. more benefits. more growth. when you realize you can give your people everything, and more. thank you very much. [applause] ask, "now what?" here's what. you go with prudential to protect, empower and grow. with everything you need to deliver,

you guessed it... more. one more thing... who's your rock? learn more at prudential.com her uncle's unhappy. who's your rock? i'm sensing an underlying issue. it's t-mobile. it started when we got him under a new plan. but then they unexpectedly unraveled their "price lock" guarantee. which has made him, a bit... unruly. you called yourself the "un-carrier". you sing about "price lock" on those commercials. "the price lock, the price lock..." so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity.

their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for. let's get to jim and stop trading. >> enterprise software remains one of the dominant themes if you're in it and you can write on or have security involving in platform and then your anything to be loved. mongo db was on this morning, stock down 35, now down 3, and soon it will be up because their software enterprise didn't matter, they gave you a weak forecast, that's the sainted part of the economy right now.

>> look at that. stock down 35 and no one cares. >> mongo. >> the only one that rivals that is david which is -- >> mongo did pong. >> we'll get oracle along with a smattering -- >> oracle missed twice and see if they can pull it off. they better pull it off. that stock has been a severe under performer. >> oracle and cpi next will be the other big -- >> look, there's -- one of the things -- we used to have earnings season. that went out the window. every day is earnings day, right? >> sure, jim. whatever you say. going away for a week -- >> no. i'm assignment or off in the morning, david. don't you know the code? >> i'm sorry. >> jim has the morning off. which means i'm by the pool. i will be working for the club every day sploo we will not see you for a couple weeks, gone next week and out with jensen.

>> next week going to work for the club, have my 10:20 call. the club is the thing. >> tonight. >> for "mad money"? >> i have an amazing show tonight. i'm going over the european mag seven, the american mag seven, i'm going to do the -- this is going to be the rashman version, by the way. >> you never really know. >> exactly. thank you. >> can't wait. >> yeah. be on assignment and have the morning off with you guys is classic. >> we'll miss you. >> will you say that jim has the morning off? >> i will update people on your whereabouts at all times. >> i'm at the club. there's love in the club by the way at 10:20. >> a lot of people are. we'll see you tonight "mad money" 6:00 p.m. eastern time. in the meantime, 16 points from 5200. don't go anywhere.

- 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? 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.

[busy hospital background sounds] this healthcare network uses crowdstrike to defend against cyber attacks and protect patient information. but what if they didn't? [ominous background sounds] this is what it feels like when cyber criminals breach your network. don't risk the health of your business. crowdstrike. we stop breaches.

good friday 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 from post nine of the new york stock exchange. record highs for the s&p and for the nasdaq right now as carl mentioned just below 5200 on the s&p. every group is higher right now except for utilities and staples. defensive sectors. what's leading us right now it's technology, communication services and information technology are your two best performing sectors. that's why the nasdaq nasdaq and nasdaq composite are higher. nasdaq up .75%. nvidia at the top of the list, amazon, apple getting relief and meta and alphabet all higher. amazon too and tesla. it's one of those broader rallies. let's look at treasuries right now. it was a bond bullish number and yields a little bit lower on the 10-year down to 4%. the 2-year note yield to 4.46.

we'll talking about it. 30 minutes into the trading session. here are three movers we're watching. what a wild ride for dock sue sign, rallying after blowing past earnings and revenue estimates and offering strang guidance for the quarter driven by strength in enterprise and small business customers. mongodb going other way after guidance lighter than expected due to weaker demand for the company's cloud computing products. watch costco, the retailer missing holiday revenue expectations death despite growth in sales and e-commerce. customers spent more on their shopping trips during the quarter and sporting goods and gardening will have lower prices due to falling crate and commodity costs. let's dig into the payrolls report because on the surface looked pretty strong. the economy managed to add 275,000 jobs in february more than the economists expected by a lot. if you look at where the jobs are, we were talking in the

makeup chair about the relentless job growth and where it's coming from. it's coming from the services part of the economy. 204,000 jobs added there. goods producing less, manufacturing, for instance, was a negative. a job loser. government gained jobs. education. health care continues to be a big job creator right now. we know hospitality and leisure strong, created almost 60,000 jobs. that's one that actually is below the covid peak. that is the story on the job growth. now, why the market is celebrating this number is that there were some weakness under the surface that could let the fed go on the rate cutting path. revisions to prior reports including january were revised down from 353,000, the initial reporteded number down to 295,000. overall revisions 167,000 jobs. lower in prior months. unemployment rate ticked up a

little bit, 3.9%. the highest in a while. >> still the lowest since 1969. >> because more people came into the labor force, prime age workers, looking for jobs. kind of going up for the right reasons on that. here's the real key. wage growth. 0.1 admi 0.1% was the monthly wage growth number and that was not as high as expected an not as high as it's been. it's the lowest month over month wage growth in about a year. it's something the fed has been watching as the potential feed into overall inflation and there's the yearly number 4.3%. so wages rose in february 4.3% from last year and the good news, that still is real wage growth. higher than inflation right now. soit helps consumers, but it also kind of calms things down maybe at the fed and in the markets about this trend we've been seeing about stickier higher inflation. we'll get a lot more information

next because on tuesday we have the cpi report. >> where morgan stanley is looking for 27 basis points. prior month was 39. bofa 31. maybe a little bit of payback in the words of morgan stanley on some services. well. goldilocks not too hot, not too cold, soft landing. all describe the jobs report today which is why on top of fed chair powell's comments we're getting closer on rate cuts, this doesn't necessarily do anything to derail them. >> a remark out of fitch the spread between the establishment and the household survey is getting wide. it's -- there's always been a

little bit of space between them in prior months, but it's getting wide enough where you start to have to question the strength of establishment. >> right. because household has been weaker and a lot of people think that's reference point. this has been a story for a while and some of the more bearish comments like david rosenberg have written you have to pay attention to households because it is showing weakness. under the surface you are seeing the weakness come through. we talk future job openings, for instance. the pieces are coming together, but if this is what a weaker labor market looks like everybody will take it because we're still seeing nice employment growth and real wage growth. one other good story i wanted to highlight in the jobs report that has been a story all year and in the last year female labor force participation. international women's day so it's appropriate to highlight this. it has surged past prepandemic levels and also it's coming back faster than overall labor force

participation. if you look at the prime rate of women, so workers that are aged 25 through 54, 77.7% this month. that was the highest level since august when the rate was 77.7 and has been an increasingly strong story, whether it's, you know, more friendly policies about work from home, post covid, whatever it is it's good for women and our economy. >> don't you think? >> i do. i do. and i'm very happy to see that participation number. >> yeah. overall participation has been a little bit higher. female it's been a really, really good story. look as we try to figure out what's next, just trying to gauge from companies what they're seeing on the demand sooif things, i got a chance to talk to enrique lawrence who announced ai pcs, but he has a good macro read. they sell printers and pcs. how is enterprise spending doing? here's what he said. >> the u.s. i would say, we show

strength in the pc side, weakness in the enterprise side and in the month of january well done on expenses, but we think that as discussions will be sorted in the next months we will see that side of the economic recovery. >> strength in small businesses, weakness in enterprise, mixed picture on demand and then some weakness in government which he thinks will help and they have a good read on china which we know is also seeing mixed economic signals. what they're seeing from customers there. >> we continue to see a lot of pressure. the market is down in -- for the majority of our businesses. we have been growing share and our position has been strengthening but we have seen a weak economic situation. on the other side there are other countries where we have seen significant strength and in india, for example, really driving very consistent growth.

>> not hearing a lot about improvement in the economic situation in china. he described it as weak and not great and pointed to india's strength which is a constant theme we've been hearing from ceos as far as demand. >> yeah. real quickly the services component of the job growth, give us more granularity in terms of what's behind it all? >> health care has been a grower, education services, leisure and hospitality. that's where americans are spending. those are the parts of the economy that are strongest right now. the ism numbers -- >> do we think the spending from the initiatives in the early part of the biden administration -- >> the former dallas president said if you track the arpa funds, they're still going out to state and local governments. infrastructure spending is starting to get going. we haven't seen the chips act get dispersed.

>> ira. >> if you're wondering why we're seeing strong jobs growth and strong economic numbers at this point of a fed hiking cycle, that could be part of the explanation for sure. that money is still going in and it's finding homes and boosting parts of the economy. >> for more on the markets bring in jpmorgan's asset management chief global strategist david kelly joins us at post nine in the wake of the jobs number. happy friday. good to have you. we've been talking about the signs of a cooling labor market at least after jolts and some of the wage numbers today. what do you make of it? >> well, it's kind of like when you take cookies out of the oven. they're cooling but cooling slowly. that's okay. this is really very good news. we've got 27 consecutive months now where the s&p is at or below 20%. that's the longest stretch since the 1960s. it's very good. one of the weird things i think is going on, we don't talk about the upside immigration because of the chaotic way people are

coming into the country but there were more than 2 million job authorizations by the immigration services last -- in the last fiscal year up from 1.2 the year before. all these people have applied for asylum are not going to get a hearing for five years, but within six months, they're eligible to work. i think that's beginning to fill some of the gaps we're seeing particularly in leisure and hospitality and retail. those job openings have come back down to prepandemic levels. a big issue in health care and more skilled areas, but we are seeing employment growth, labor force growth coming partly because of immigration. >> that got reflected in cbo data in the last couple months. >> meantime these productive numbers, a desk note out of jpmorgan that says this is a discussion point now for clients, the idea that you can let the economy run and still keep unemployment below 4. >> that's right. because what we're seeing right now, if you look at the wage data, the wage data for january were distorted by weather.

look at the numbers from february. 4.3% year over year wage growth. it's a little on the hot side. 2% inflation f you can do 2% productivity and goods prices, you can do 4% wage growth and everything stays stable. we can do good wage growth in this economy, and still get to 2% inflation. which is a very good outcome. >> where are you? june for the first cut and how many? it's still going to be a careful art here. >> i think so. it's a tricky bit of acrobatics here. we think the federal reserve will cutrates 25 basis points in june, 25 in september, 25 in december at those s&p meet where is they're giving out information. they'll take it slowly. long may this last because, of course, not only good for the economy but good for investors. this is what's supporting a continued rally in the stock market and the fact that wage growth is not exploding, is also helping the interest rates from

not going higher. >> at this point what are the expectations around earnings, given here we came in again and we got surprised on better economic data? >> well, yes, but the earnings are going to be -- we're not going to match the analyst expectations. the analysts are looking for double digits this year and next year. i think we'll get mid single digit but if we have over 4% wage growth and slowing nominal growth, which i think what's going on, it's going to make it hard to hit the targets. targets are at very high levels and, you know, i think if we can just do mid-single digital earnings growth that's really fine. i still think there are parts of the equity market which are overpriced at this point, but people tend to keep on making bigger bets further out as we get shocked. they need to be careful because the next shock could really, you know, change relative valuations, but for the moment, this is an economy which seems to be supporting a rise in the

stock market. >> you started off talking about immigration. you've been on us with many years. you come back to that subject, and i'm curious why? >> i look at this from a global perspective. in japan there are now two people dying for every person being born. their population is falling. china, germany, italy their population is falling. our population is growing and the only reason our population is growing in any significant way is because of immigration. so i know that, you know, the system is chaotic. we, obviously, need to see bipartisan immigration reform, but we shouldn't lose sight of the fact that one of the key aspects of the dynamics of the american economy the reason the economy is doing so well and other economies are languishing is because of immigration coming in generating jobs, demand, activity, so it's -- it is always been a big positive for the u.s. economy. >> david, we'll talk some housing next time and the impact that potential rate cuts might have on why. good to see you. >> good to see you.

>> you should give the biden administration those notes. as we head to break our road map for the hour. this weekend marking the one-year anniversary of silicon valley bank collapse. are the regional banks safe to buy again? >> apple shares off seven straight days of losses. could this be the beginning of more declines maybe? what the charts may be signaling. >> gold has been soaring to record highs up almost 4% this week. how to play that as "squawk on e re" ntuein a moment. 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.

is it possible to count on my internet

like my customers count on me? it is with comcast business. keeping you up and running with our 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. with comcast business, reliability isn't just possible. it's happening. get started for $49 a month. plus, ask how to get up to a $800 prepaid card with a qualifying internet package. don't wait, call and switch today!

this sunday marks the one-year anniversary of the collapse of silicon valley bank. an convevent that sent shock wa through the banks. leslie picker joins us with more on where we stand flashbacks to that weekend where we were all trying to figure out what the government was going to do. >> i know. i can't believe it's been a year and in some ways we're seeing deja vus out there on this one-year anniversary of svb's debias. a look at what's really happened within the banking industry since then. the turmoil has left a lasting mark on equity prices with the kre under performing the larger bank weighted kce by 14 percentage points over the last year. larger banks were able to attract deposit from skittish customers, consumer and commercial, who were worried about keeping their funds in a

smaller bank. if we look at the banking industry as a whole deposits grew in 4 q for the first time in seven quarters. lower rates towards year end helped pair back flosz underwater securities across balance sheets. that figure stood at $274 billion, down nearly $100 billion from peak losses in the third quarter of 2022. so those two issues that plagued last year's failures, interest rate rate risk amid deposit flight, don't seem to be as much of a problem now, however credit quality appears to be worsening. quarterly provisions, the amounts banks are setting aside for troubled loans have been picking up steam amounting to ability double the average in the period between the financial crisis and the pandemic. that is a key reason why net income declined across the system last year, and it's also been a concern within the books of new york community bank corp and other regionals in recent

weeks. >> thank you. leslie picker. let's get to more on the state of the regional banks and the financials overall, ubs bank analyst erica najarian joins us now. do you believe that this disparity in terms of performance between the biggest banks and call them the medium to small will continue? >> yes, i do actually, because when we talk to investors throu throughout, there's very little long appetite for regional banks. the concern doesn't have anything to do with the severity of what happened last year. the concern is that perhaps they're not scaled enough, you know, to really compete with the big guys for now and consolidation is unlikely and so we understand the results of the election. you still have potential pressure on deposit shift and pricing and so much of their fate in terms of growth and revenues are so tied to what's happening on the curve, which

just shifted this morning, and so there's very little appetite right now for regional banks that don't have a single story, single stock story. >> yeah. so again, would different regulatory approach change it? i'm curious as to what might be a catalyst for as you say consolidation or just a change in investor viewpoint? >> yeah. so a couple of things. one, what would change investor viewpoint is if we put more cuts in the curve. i think there is a widespread belief which i buy into that not only will you get relief on the deposit pressures but you'll get a little bit of relief in terms of, you know, the pain and commercial real estate if you have relief in rates. the other part is consolidation has been very difficult during this administration except for unique cases like you saw with capital one and discover and a lot of banks are saying we're not going to go through the process of, you know, application and going through a

long close like u.s. bank corp did, unless we really understand how the administration change changes and that could shift, you know, timelines and willingness if we have different results in november. >> big news on the regulatory front from chair powell this week who is on the hill and asked a lot about the basel iii end game rules. he said i expect there will be broad material changes to the proposal. we were speaking yesterday with rich, the former number two at the fed, and he said it's a big deal and took note of what powell said as far as them going back to the drawing board a little bit when it comes to the rules that big banks have been very weary of. what are your investigator expectations at this point about where this is going to end up and impact business? >> it's pretty consensus that the basel iii end game rules will be softened, if not reissued entirely, but, you know, as we're discussing

regional banks, unfortunately the benefits for them are scant. the large regional banks above $100 billion don't benefit as much from the softening of end game. they didn't get scoped as badly, but the real beneficiary is in softening our -- the card companies and also the money center banks, which goes back to the ke at the top of this segment, can big banks and financials get to outperform the regionals and seem the tailwinds continue to be with the big guys. >> you mentioned the capital one-discover deal. i'm curious what you're hearing on that front in terms of interest and/or -- it's going to be quite a long regulatory review potentially there, but what are investors sort of focused on when when it comes to that and the implications of that deal? >> it is the only two stocks that investors, financial investors, are excited about. a lot of -- there's been a lot of scuttlebut about the

probability of close. we think this deal closes. there's no way that capital one would not have taken regulators along this journey if they didn't think this deal would close, and you can see the were a sp-- arp spread is 40% probability of close. also how game changing this is for capital one and keep in mind that, you know, propping up the fourth smallest, you know, or fourth largest network in the united states against what's essentially a duopoly with visa and mastercard is pro competitive. the other thing, too, that could be game changing is capital one can have a debit new york on discover's debit network and that allows them to be extraordinarily competitive in terms of deposit products, checking deposit products against the behemoths of wells fargo, jpmorgan and bank of america. that's actually a lot of investors see that as pro

competitive. >> interesting. erica, thank you for your banking analysis and a little risk arbitrage as well. erica najarian. >> thank you. still to come this morning, apple shares on pace for their worst week since september. why the recent decline could be the beginning of more pain to co. we'll talk about it after a short break. at morgan stanley, old school hard work meets bold new thinking. (laughter) at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. 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. empower. what's next. 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. (♪♪)

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! perhaps you know me as, the kung fu panda. for a cha♪ ♪ng world. ah, you're adorable.

huh. oh, whah! . check out this staggering stat. novo nordisk market cap now overtaking tesla following another big rally yesterday. shares of the weight loss drug make up more than 30% since january, almost doubling in the past year. i spoke with novo nordisk's ceo about the supply and demand gap right now because everybody wants these obesity drugs. listen. >> significant, i have to say. we look in the u.s., there's more than 100 million people living with obesity and that number is growing. so far, we only are serving around 1 million patients. we have access to around 50 million patients, and we are having to -- we have to restrict starter doses to make sure those who start treatment can go up to

the maintenance doses. we are releasing more of those doses into the u.s. market. as we start the new year. >> it's going to take a few years to catch up with supply. you can see my entire exclusive interview with novo nordisk ceo in the next hour on "money movers" and check out the cnbc documentary "big shot the ozempic revolution" which is available on demand and coming to peacock later this morning. apple trading below key levels. where might the stock be going? dom chu is tracking that price action. >> apple shares posting solid gains today but trying to snap the seven-day losing streak, meaningfully underperform the nasdaq 100 and broader s&p 500 overall over the course of the past year. some traders are watching some of the charts and some of those so-called technical indicators and apple shares are moving

towards testing the recent lows that we saw. if you look at an apple chart back towards that october level right about here, that's the roughly 165 area. but now it's trading at the widest gap below its 200-day moving average, as you can see there, in quite some time. that's something market technician david keller at sierra alpha research is keeping an eye on, alongside other moment communicators like the stalled out index rally in january and shares are at a key level with downside pressure now, but also, at levels given relative strength index support that reits oversold. at the same time citigroup today reiter rated their buy rating on apple but lowered the price target to 220 from 225 and like what they see as structural gross margin expansion due to peoplization supported by ai smartphones and services growth. for more on the bull/bear debate playing out head to cnbc/pro subscribers there can read more on both sides of that story so

keep an eye on that, sara. i'll send things back over to you. >> we will. thank you. still to come, traders ramping up their rate cut bets following today's employment report. the latest odds. we'll talk to goldman sachs chief economist jan hatzius to weigh in on the data. dow up 52. s&p and sd arerdig.naaqt co hhs we're back in 2. hey, do you have a second? they're all expecting more. more efficiency. more benefits. more growth. when you realize you can give your people everything, and more. thank you very much. [applause] ask, "now what?" here's what. you go with prudential to protect, empower and grow. with everything you need to deliver, you guessed it... more. one more thing... who's your rock? learn more at prudential.com after last month's massive solar flare added a 25th hour to the day, businesses are wondering "what should we do with it?" bacon and eggs 25/7. you're darn right. solar stocks are up 20%

with the additional hour in the day. [ clocks ticking ] i'm ruined. with the extra hour i'm thinking companywide power nap. let's put it to a vote. [ all snoring ] this is going to wreak havoc on overtime approvals. anything can change the world of work. from hr to payroll, adp designs forward-thinking solutions to take on the next anything.

i'm contessa brewer. the israeli military released a reporting to the deadly shooting of the aid distribution in gaza last week. the idf reports troops did not fire at the aid convoy, but did shoot at a, quote, unquote, number of suspects who they say posed a they threat and looted the equipment they were transporting. the hamas-run gaza health ministry says 100 people in a crowd of about 12,000 died during that incident. the osprey aircraft is once

again been cleared for flight. the navy grounded the vital u.s. military aircraft three months ago following a deadly november crash off the coast of japan that killed eight service members. navy officials said it was caused by an unprecedented parts failure. and a disgraced former new york representative george santos plans to launch another campaign. he announced thursday night he will run for the u.s. house in another district on long island. this colleagues kicked him out of the house in november and santos faces several charges for allegedly defrauding donors in his 2022 campaign. that's the news. david? >> thank you. fresh data on the state of the jobs market this morning. what does it mean for the fed and rates? let's get over to steve liesman who has key takeaways from this report this morning. steve? >> yeah. i wish i could be more decisive but dramatically indecisive is the best way to think about this february jobs report likely

leading the fed to keep in a wait and see mode. divide all this up into stuff from the report that looks like it's for a cut and against a cut. here's the for a cut stuff. you have the big downward revises moderating wage growth and a higher unemployment rate, up by two ticks to 3.9%. but payroll growth was still above 200,000. that's well above the run rate for the labor force growth. the annual wage growth is still above 4% and the unemployment rate still under 4%. all of that says stay on hold, i think, to the fed. what will puzzle the fed is the growing gap you were talking about between the two job surveys. i was looking at that at 8:30. the payroll report, most followed closely for jobs, 2.7 million jobs created in the past year. household, we look at for the unemployment rate, volatile month in month shows 876,000 jobs created. t the biggest gap since october 2021. in the face of that disconnect what's the fed going to do?

likely wait for the data to sort itself out. what does the future markets do? boosted the probability of a may rate cut to 29% from 21, but it's still below 50. you don't know how seriously to take that. it modestly increased the chance of a june cut from 76 to 78. still feeling pretty good about that. for the year they slightly decreased the expectation for the year end funds rate down to 4.3, so a bit more than four 25 basis rate cuts built in. now real quick something else to think about, what was made the fed chair powell's comments yesterday. the fed is not far from rate cuts. i made a lot of it and other media did too. the question is if he might have been more forceful and clear if he meant to send a strong signal. >> in other words, he didn't mean to send a strong signal? is that what you're saying? >> it could have been just a comment there that maybe the

market went a little bit too far with, but still, i think the or yen sayings between where the market is priced and fed is, is not that far off. just trying to sort it out. >> got it. steve liesman. our next guest sees four 25 basis points cuts this year. chief economist jan hatzius joins us at post nine. are you still at four cuts? that's more than the market and fed expects? >> we are still at four and i would say at the margin the news flow i think has said they're probably not too far from cuts. a little bit hard to know how much weight to put on chair powell's comment in the testimony, but it pushed in a slightly dovish direction and if i look at today's jobs numbers, they certainly say that labor market is very solid and payroll growth is still strong, but there has been a little bit more slack. the household survey and unemployment rate are a bit softer and the wage numbers also

trace that big increase that we saw in january. all of that to me says we're still on track for a soft landing with some gradual rate cuts as we go through the year. >> we're going to get cpi next a week and then a fed meeting, nobody expects them to do anything for the march meeting. i wonder how you expect the data to shake out from here on employment and inflation? it feels like they don't really know and they're waiting to see that. >> we never know what data is going to bring, obviously, but i think the inflation numbers will show much softer sequential numbers in the next couple months than january. to us, january is really a huge outlier to the high side, driven by what we've termed january effect, which is basically big price increases at the start of the year that are hard to seasonally adjust in a post-pandemic environment, and then this big increase in owner equivalent rent which looks like an outlier. with that, i think the next

couple reports are going to look a lot better. >> i loved your report a few weeks entitled ov are you serious, you look at the effect of housing. do you think that's going to creep into the macro numbers like new rents which powell talked about this week? >> yeah. kudos to spencer hill who came up with that title, but that was very -- i like that a lot too. i think that the represent numbers are generally showing deceleration and point to a lot of deceleration in the cpi version of that. fy if i look at the private sector rent numbers that's true for multifamily and true for single family rents. it can't really explain the big jump. to me it's more likely we basically just drew a very high sort of sampling observation. it's a small sample and sometimes these things can happen.

if that's right we'll find out over the next couple reports, if that's right, though, then we'll see deceleration from here. >> but is the services part of the economy cooling off enough that the fed would feel comfortable cutting? >> well, i think the question is, what happens with -- where is inflation going? there are two paths to get to cuts. one is a significant deterioration in the labor market. in that case you get aggressive cuts. that's not what we're seeing. but then the other path, which chair powell has talked about many times if inflation goes back to 2%, and is on it ways back to 2%, there's no longer a good reason to have a 5 handle on the funds rate. that's the path we're on. we're not there yet, but that is what we're expecting over the next few meetings. our baseline is june. you can't rule out may. they're not coming in march. >> finally you've written about the wealth effect and what stock

prices have done and how that's eased financial conditions. i think it's tony pascarella this morning talking about how much household wealth has been added. is that not inflationary? >> i think it's a reason to expect the economy to remain pretty solid and to me a reason why the low personal saving rate is sustainable at least in the near term. we expect some upward pressure on the saving rate but not a lot because if markets add to household wealth in thougs some degree and certainly in the stock market then there's going to be somewhat less saving out of current income. so is it inflationary? i think ultimately the question is are we overheating the economy with those sources of support? i don't really see that. if you look at where the unemployment rate is, which has been sort of sideways to slightly higher, broader measures of labor market

overheating have continued to improve. quits, for example, you know, job openings in jengeneral have pointed in that direction. >> soft landing guy. thank you very much. >> thank you. >> appreciate it. >> gold prices hitting all-time highs. can those gains continue? is it time to buy into the metals? we'll discuss that after a short break. 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.

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. moving forward with node-positive breast cancer is overwhelming. but i never just found my way; i made it. and did all i could to prevent recurrence. verzenio reduces the risk of recurrence of hr-positive, her2-negative, node-positive, early breast cancer with a high chance of returning as determined by your doctor when added to hormone therapy. diarrhea is common, may be severe, or cause dehydration or infection. at the first sign, call your doctor, start an anti-diarrheal , and drink fluids.

before taking verzenio, tell your doctor about any fever, chills, or other signs of infection. verzenio may cause low white blood cell counts, which may cause serious infection that can lead to death. life-threatening lung inflammation can occur. tell your doctor about any new or worsening trouble breathing, cough, or chest pain. serious liver problems can happen. symptoms include fatigue, appetite loss, stomach pain, and bleeding or bruising. blood clots that can lead to death have occurred. tell your doctor if you have pain or swelling in your arms or legs, shortness of breath, chest pain, and rapid breathing or heart rate, or if you are nursing, pregnant, or plan to be. i'm making my own way forward. talk to your doctor about reducing your risk. a sister shop is our retail

and e-commerce destination that features brands of over 150 women of color presence. women of color are the largest and fastest growing demographic but we're the least funded and supported. we wanted to create a space to close that gap. anything that i've learned that's helped me in the business. when my sis sta wins we all win. gold setting a new intraday all-time high dating back to its contract inception in 1974. gold and silver on pace for their best week of the year. the rally in gold kicked off on march 1st when the ism data signaled an economic contraction which has set the statege for a rally in gold prices. we're keeping an eye on that. we've talked about commodities and a lot of firms with the dynamics behind the price right now. >> also interesting bitcoin is breaking out as a new high at

70,000 right now. bitcoin and gold moving together what does this mean? our next guest is saying that the short term decelerating economy, coming back in the market, portfolio manager joins us now with over $28 billion in assets in precious metals. what's driving this move in gold? >> i think it really all has to do with expectations of interest rates. people have been looking for signals that might be starting to cut rates and as you pointed out earlier the deceleration is u.s. manufacturing. going to start cutting in june here. >> it'sthe community trade bitcoin, gold. there's still ample liquidity in the system.

the market is looking forward to a story. >> i think that's the majority of a different aspect. in the u.s. a big rally on bitcoin. partially due to some of the etfs recently. >> they are looking to diversionfy their portfolio of foreign exchange reserves into gold. >> in particular big buyer the central bank and chinese firms of gold and i wonder what we read into that, is that a diversifier away from the u.s. dollar. >> you know what, i think what they're trying to do is reposition themselves to have a wide range of possibilities, you know, in their outlook for economic activity or even geopolitical tensions that might continue to rise.

>> i know you focus on energy transition materials. i'm curious, any thoughts on what's happened to lithium, for example? >> we've had a huge run up over the past several years and last year and a half or so, down kind of 85, 90% or so. and typically commodities you get these huge cyclical moves based on supply demand imbalances. so it's not a surprise. i would say nascent market and i think people are getting to grips with the pricing of it and frankly the introduction of new production. it's not a surprise to me at all. >> where is the best opportunity? if you miss this move in gold, i know it's hard to find a value for gold,but at 2200, is it there? would you go elsewhere? >> i tell you i would much rather be positioned at least partially in gold now really given where the u.s. equity markets are. you know, you're looking at very high valuations, you know, if you look at, for example, the

schiller cyclically adjusted price earnings ratio, today's level is approximately double the historical level has been. i think from a gold perspective in addition to a relative value trade in an absolute sense it's outperformed. >> all right. thanks for weighing in. certainly caught our attention. still ahead, fresh news out of microsoft outer of the hack they first reported in january. it's not pretty. quick programming note, don't miss a big exclusive with the ceo of novo nordisk. shares are up nearly 100% over the last year. don'gowat ay.

- 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? 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.

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! new developments on microsoft, a hack the company originally disclosed in january. let's get over to eamon javers for interesting details here. the russians involved as well, i guess. >> that's right. i just got off the phone with the folks over at crowdstrike. they think this disclosure points to a potentially problem

with the microsoft azure cloud product. microsoft has been unable to stop an ongoing hack but russia's intelligence agency. microsoft says the hacker is known by code names such as midnight blizzard, nobelium and cozy bear is using information stolen from corporate emails to gain access to the company's source code repository and internal systems. the company says the russians have stolen secrets, shared over email between customers and microsoft that microsoft has been reaching out to its customers to assist them in mitigating the damage from all that. the company says the volume of some aspects of this attack incrn times in february, so this is clearly a serious and ongoing situation. it's worth noting here that microsoft first saw this campaign in january and two months later they still have not been able to push the attacker out of their systems. microsoft's language around this

attack has been particularly dire. saying in january that given the vast resources of a nation state attacker, quote, we are shifting the balance we need to strike between security and business risk. the traditional sorts of calculus is simply no longer sufficient. saying today that this attack, quote, reflects what has become more broadly an unprecedented global threat landscape. guys, back over to you. >> wow. if microsoft can't deal with it, given the resources of that company, which are more or less as big as any you could ever think about it, it does pose some serious questions, i guess, eamon. >> there's almost a plaintiff note in these filings by microsoft, saying, look, we're under attack by a nation state attacker which has vast resources which dwarf what microsoft can bring to the fight. clearly this is a nation state problem. you do wonder, and we'll ask, what the u.s. government has been doing here, what the nsa,

and other defensive organizations inside the u.s. government have been doing. clearly microsoft has a significant problem here. also its customers now have a significant problem here. if they've been emailing about sensitive details with microsoft leadership, some of that information is likely now in russian hands as well, david. >> well, eamon, it seems rarely a day goes by there isn't news of another hack of some kind. this is one of the many beats you cover for us. but you're awfully busy. are things continues to worsen when it comes to intrusions? >> yeah, i mean, i think you've got a couple things happening. we've got nation state actors really aggressive, particularly in this -- in an election year ahead of 2024. you also have a resurgence of ransomware attacks from criminal gangs as well after the ukraine invasion. a lot of that activity dipped. but now it's back in force. so, two things happening simultaneously, which really show there's a surge of this kind of activity. companies have to be on the defensive here, david. >> and also disclose. again, you nh, for example, yet

another example, right? >> new rules from the s.e.c. mandating disclosure. we're seeing a lot of this come out in public which otherwise would maybe not have been disclosed publicly. >> eamon, thank you. eamon javers in d.c. covering that latest newsfrom microsoft. a quick reminder right here, we're going to have the ceo of pharma giant novo nordisk in the next hour. our live market coverage continues with the s&p and a new all-time high. we're back after this. 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. 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! (♪♪) 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. (♪♪) 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 friday morning. welcome to "money movers." i'm carl quintanilla with sara eisen live at post 9 of the new york stock exchange. today former nec director vice chair gary cohn is with us. get his reaction to this morning's jobs print and the state of the union. noticvo nordisk is surging, exclusive with the ceo and interesting comments about m&a. hbc's head of wealth and personal banking joins us on set breaking down how she's allocating her close to $200 billion of assets. a look at the market with the s&p 500 at an all-time high. the nasdaq a