the wife. >> talking about that. >> no, i still want to understand more. look, the issue is if it's a national security threat, it's a national security threat. if it's not, it's not. to use one national security threat and say it's the enemy of the people is a whole nother thing. >> you've always got to look underneath the friggin' hood. you just have to. make sure you join us tomorrow. "squawk on the street" is next. ♪ good monday morning. welcome to "squawk on the street." cramer has the morning off. premarket is extending the weakness from friday's downside reversal. calendar packed this week with cpi, retail sales. we begin with the big week for investors. we'll get the latest investment

read tomorrow. >> not so invisible. the chip giant notching its biggest stock reversal in nearly seven years and the biggest single day percentage decline since last may, plus targeting tiktok. there's a bill that's moving through congress pretty quickly that could ban the social media platform in the united states. president biden says if, in fact, it passes congress, he'll sign it. let's begin with what will be a very busy week for the markets that ended friday with a losing week for the s&p. we haven't done that for a few times, but it didn't stop your former employer. >> that is true. berens. i think the nature of the decline, you mentioned the reversal in nvidia and we had an almost made to order jobs number

and the market didn't exactly shrug, but it wasn't able to capitalize on it. it highlights a couple of the things people have been suggesting would be a test for the market, which is it's become a bit overreliant on pure momentum on certain segments meaning the types of stocks that are doing well, that have the highest upside velocity has been performing the best. it's part of ever sector. i keep pointing out lilley and health care. it's a fundamental issue. not a flow issue. you see this little bit of unwind in the trades that have been overtrade. nvidia has indicated a little down, down 100 bucks off the high by kind of a massive volume, but no news. but that's always the way. >> mike, on friday, i was looking back on my notes.

he was talking about momentum exposure off the charts. we talked about this a bit on friday. the market ahead of itself, just, again, looking at some of the notes. you can be a huge believer in the power of iai, but that doesn't change the fact. when you look at the name, which is the single most important number in the stockmarket right now, i don't know, does it have a significant impact in terms of the momentum overall? >> it does in the sense that it sort of tests exactly what's behind the momentum. >> right. >> so, no, it does. i think we should be clear, momentum is not like, oh, you look at it when you see it. it is a statistical factor. it's a degree of leadership and outperformance over a period of time and you have people who decide whether that's going to exist. that's why we've had the divergence with the magnificent seven, right? you've managed to have apple and

alphabet. they've suffered because of it. so it's not going to be the whole story of the market this year. it does kind of touch a raw nerve, which is exactly how aggressive people are going about to be in discounting the secular growth story every day through higher prices. >> yeah. we're obviously on watch next week for gtc. it's promising investors to scoop up a stronger set of stocks. we talked about last week, industrials and the health care unit. >> this is the kind of silver lining piece of it or what the market has been waiting for. the market absorbed it. friday we looked like we were going to have a substantial downday. we ended up with 0.23 because everything else picked up. part of that is just a reversal of what's been happening.

yes, you've had new highs in the equal weighted s&p, new highs in the cap index. it has become more inclusive. it should happen that the earnings growth picture should broaden out, and that's what the market seems to be looking ahead toward. so it's not all about seven stocks, but it is an unbalanced market in terms of where the real buying aggression has been, and that's been in this subset of stocks. the stock call was the highest since november 2021, which with us the highest of nasdaq's peak. you have to be aware of the mechanical flow stuff. you say, does it change the story? no. earnings growth is going to grow for a third straight quarter. forward estimates are at an all-time high and it looks like it's going to be a strong economy and a record-high stockmarket. so all that stuff is not bad and

all of that is incredibly generous too. >> that sounds good. >> exactly. that's why it's hard to say we're outright bearish on the hear and now. it's about positioning and sentiment have kind of gotten ahead of it. this is always that moment where you're saying, you know, when you reach the north pole, every direction you look is south. when you get to that point, you say, yep, everything is great. next? and the next thing might not be as good. >> our next guest raised his target on s&p after the target raised its goal. let's bring in c.j. he raises his buy. great to see you. was friday a shot across the bow? >> you know, i think there was ample debate whether gtc would

be a buyback event. it probably makes you a little more nervous coming into the week, but i think if you take a step back and think fundamentally this is a company that's probably going to earn $35 next year and if that's right, you're paying $25 for one of the best general ai prices, a shot across the bow, sure, but i still think it works. >> what do you think gtc delivers? what do you think the keynote is all about? >> sure. they're moving into the facilities. you're talking 16,000 people, you know, so it's going to be a big event. i would say first and foremost on the hardware site, they'll launch and it will be double the performance of the architecture. you've got a big wave of growth there into 2025, which is really important. the second one is software, right? it's a billion-dollar business today. that will be a $10 billion, $15 billion business over the next

five years. that gives you confidence. last would be on the inference side, they're going to give you a lot of inference cases where you understand the 40% mix continues. you put it all together. once you get confidence that growth is sustainable, the stocks are going to move higher. >> i guess, c.j., you're going to earn, by your numbers, $35 next fiscal year. you're talking about paying mid-30s multiple on that, which doesn't seem extreme on paper. we've seen amazon and tesla trade. but we haven't seen a $3 trillion company trade. but it seems like the onus is on the staple being multiple for years. it reminds me of tesla, the trade, where they say don't worry unless it's grow, grow, grow, and we have another story to follow the current one.

>> i think you're spot on. right now we're looking at a 100-plus billion dollar business for next year. if you think half the data centers will become ai a architecture or enabled, that's one thing. it's the direction that many experts see and i see, and if you believe that, you know, we're going to surpass, you know, that mark. if you don't, you know, then obviously we're near peak. but i think if you believe in the jebgenerative ai, we're sti in the early days of trade. there's still plenty of leg room higher. >> i should point out. i said $3 trillion. that's at your price target you would have to do the math. >> right, right.

>> and the consensus for next year is 35. you think that's more likely the earnings. >> 35. but you're pay 25g times. for the last five years the stocks traded at a 40 times multiple. so you could argue, again, to your point, you've got to believe in the sustainability of the growth. >> i wonder how you see the broader space right now. there's been a space of broader returns. why the difference? >> well, i think, you know, first and foremost, ai leverages what they want. they have really been outperformers. you know, in the last week or so, we've seen, you know, maybe a bit more focus on value. so tsmc has done well. i've seen kind of a focus on the edge, trying to figure out what's next. qualcomm, terradyne are names that come to mind and they have started to push higher.

i do think that investors are trying to figure out the n plus one and what is next for the group. if i take a step back, we're only three-quarters into the upturn. the average cycle is nine. i still think ai is your best exposure. we do like front end semi-equipment as the arms dealers to ai. analog is a group where we don't think we get to the prior cyclical highs, so we'd be very picky there. but it's probably a mace, you know, to spend time. that's where i'm definitely hearing from my clients, a greater focus. >> c.j., appreciate that. that's helpful. hopefully we'll talk if not before the gtc, then later. don't forget today's exclusive at 4:00 p.m. with lisa su.

when we come back, trump talking about facebook and tariffs. more "squawk on the street" straight ahead. makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley

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get a free line of unlimited intro for a year when you buy one unlimited line. visit xfinitymobile.com today to learn more. i'm not looking to make facebook double in size, and if you ban tiktok, facebook and others, but mostly facebook will be a big beneficiary, and i think facebook -- i think facebook has been very bad for our country, especially when it comes to elections. >> that's former president trump earlier this morning on squawk saying that a tiktok ban would result in a more dominant facebook, a company he calls the enemy of the people, and it raises the chapter once again

which company faces a political risk under a trump term. >> we've been down this road before obviously. toward the end of the trump administration, we discussed there was an efforting with made by president trump and his administration to potentially ban tiktok on national security grounds. that is the basis for the current bill moving through congress, and it seems to have picked up a good deal of momentum. we talked on friday about this as well in part because of tiktok's actually effort to raise awareness among its community. our congresspeople have seemed to have back firfired in a way. the president has indicated if presented with the bill to ban tiktok in the u.s., he will sign it. of course, then it brings us back or brings me back certainly to the reporting i did, i guess, three-plus years ago, 3 1/2-plus years ago when there were any

potential numbers of offers for tiktok in the u.s. walmart was in there briefly, orac. which would have hosted the servers, microsoft. none of it happened and the whole effort fell apart, or at least the momentum died, but here we are again. then the question becomes, bytedance, the parent company, its key owners, it's one of the greatest investmentness of all time for those who owned it from when it began back in 2012, i believe, including susquehanna, which we pointed out on friday owns 50% of bytedance. you have the likes of philippe laffont and bill ford from g.a.along with arthur dantchik

of susquehanna. i remember having done a report on this previously. there were some reports that the ceo of activision would try to put together an investment group. you don't know whether the best route would be for bytedance to take it public and follow with a full spin. you flow, i sort of raise my hands right now. a lot of reporting to be done as this potentially seems to have a lot more possibility, i guess, than the previous effort. >> yeah, for sure. there's such an enormous amount of activity in the power. i don't know when you're looking at it. i think meta was trading too. i think it's in that same momentum basket.

>> there's no doubt it would be a beneficiary. reels has gained certain willy some share, and there is, i think, little doubt that if you really were to ban tiktok a prevent people in the u.s. using it, it would be an advantage for reels, meta, and other platforms. but understanding the transaction that would need to take place to allow tiktok to continue to operate becomes somewhat complex in terms of how you value it, how you go about constructing it or reconstructing it in the u.s., so it meets the objectives of the legislators who are currently trying to get this ban imposed. >> there has been talk in terms of growth rates and impact peek because of exactly how the user experience, you know, has

developed at this point. it doesn't mean the issue goes away. >> bytedance itself incredibly popular. $2 billion seemed to have been the price tag. it may be trading a little lower in part because of the fears, but i think it has like $100 million in cash. incredibly popular. as is tiktok in the u.s. it's quite a business. >> we'll get other comments from president trump about ev and tariffs. when we come back, a look back at the market call heard around the world. 15 years ago this past weekend. take one more look at the market as we get ready for this monday. . 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.

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15 years ago this past weekend, a legendary call made on this very program by one of its anchors, the late mark haha haines. take a listen. >> hold on, everybody. we've been waiting for this. >> i think we've hit the bottom, i really do. >> since what has been known as the haines bottom, s&p 500, it's

up more than 150%. nasdaq up more than 1100%. they've got us saying the dow, which you guys know i don't like. it's up as well. >> that's kind of how the dow works. i was looking over the weekend. the annualized return for the s&p since that moment is 16.7%, annualized total return. >> wow. >> now, it has been -- there have been 15-year stretches, but not many. i think it's a good lesson of in retrospect it feels like, for sure, things have been so bad for so long. but there was ever reason to doubt that the bottom was in at that moment. >> oh, my gosh. i don't mean to cut you off. >> absolutely. >> people were still burying gold in their backyards. what's the value of paper money, it's over. banks trading in low single

digits. g.e g.e. was frightening. >> it had an annualized return of 4%. this shows you how the pendulum swings over a long period of time. the s&p was down, lower than it had been like 12 years earlier. if that ever happens again, you know, maybe rebalance stocks. >> mark was definitely talking about the 200-day moving average and even longer term moving average. >> very, very slow-moving stuff that rounded into play. >> of course, we miss him every day. don't forget you can catch us any time, anywhere. listen to "squawk on the street" "opening bell" podcast.

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we've got upgrades of coin. michael saylor earlier. people are saying it's bigger than silver, bigger than the high yield bond market.

it's back to being a pretty substantial number. it still eludes pure speculation. gold is making a record-high. moving up much slower, but there's something about the craving for as equity values go up and as the entire world becomes a little more weighted in those types of risk assets, there is a flow in this direction. i was definitely skeptical that the etfs would or could be big deal catalysts simply because we had seen them before. it's psychologically been a good backstop. larry fink at blackrock and his conversion to this ideal which honestly seems to come down to, it's been around this long, there seems to be some appetite for it, we're in the bitz of helping people get exposures, not like this is the future of money or anything like that.

we'll continue in that operation in a minute. let's get to the "opening bell." it's ireland inc., celebrating the 25th anniversary of invesco etf. [ bell ringing ] >> some discussion this morning about how bitcoins might be related to or not related to ongoing inflation data. you get the sense inflation is cooling, rates come down. do people move into the crypto assets or get higher returns? >> it has been, if anything, correlated with the nasdaq 100 with the overall disruption trade. but i also saw stats this morning its general connection has loosened a little bit. it seems to have a little bit more of a mind of its own right now, but it is worth a reminder

that in the entire inflation slot, that was not a big picture. whatever you thought it could do for you, being some kind of insulator because it's a scarce digital asset and it's almost like built in to be, you know, kind of create this kind of scarcity discretionary kind of effect, no. but it is worth keeping an eye on it this week. in terms of whether that can change the story away from hot january data, a little bit flukying something that changed through february and changes the rate equation just a little bit. >> certainly the jobs number did involve some payback from january. although, there's still some belief that tomorrow's number will air on the hot side. i know at least on core, there's a couple of banks looking at 0.3 and some change. >> there's definitely sensitivity in that direction.

the other question is i wonder to what degree people will be willing to kind of explain away parts of it and say we know it doesn't reflect what's really happening. even the department of labor, they're holding the calls, trying to contexturalize what it does and doesn't matter. it feels like if the fed decides they're going to pay attention to the groundwork for a potential summer cut, they're going to do it, unless it's certainly a trend changer that says inflation is heating up again. we'll have to see. also cpi versus cpe has become a big talking point as well. >> that's our talking point at the top of the hour. certainly we'll keep our eyes on nvidia. apple, certainly a bit of a bounce to it, a bit of a bid there. i'm sure you've seen the note about large language models, stocks. it's basically five stocks. that includes alphabet, which has not been a great performer.

nvidia, microsoft, meta, the like, and amazon. but talking about, you know, the concentration of those stocks in particular and how they've outperformed the othermy ga caps, i'd like you to way in. >> no. it's been the extra energy source in the market that does not get really well explained by the broader macro or earnings flow or anything like that. all the markets need something like that where it's not just about we're going to ride the cycle and we'll see how it goes. it has to be more open-ended, we're enthusiastic about something. the market definitely creates more names, more ways to leverage this trend, i think. it has been tough, i think, to have nvidia be the kind of killer app so to speak and everybody acknowledges it has the momentum. so we haven't seen the ipo flow. maybe we're not going to get it because it is such a scale business. it's usually when you see one of

these super boom time sectors, everybody is rushing. it seems to have happened so fast. >> it did. to your point, at least the beneficiaries are the hyperscalers, hence, mega cap companies that can spend the largest sums have the largest mega cap sums that can be spent on the new data centers and everything that goes into them including, of course, a lot of nvidia chips. i have wondering, we've discussed why not more ipos given the similarities that we've discussed and the internet. back then we had companies coming endlessly, most of them with underlying business models that made absolutely no sense. >> yeah. back then you could sort of be a website or software company that operated in this very sort of small part of the food chain and you could blow that up into being a plausible enough business model for an ipo.

we're not seeing that. a lot of things don't quite line up in terms of seeing a lot of broad-scale frenzy. you don't see a lot of ipos. you do see a lot of concentration in the biggest names, and that was something leading up to the 2000s. also i saw the momentum challenge. the parmg of the s&p market cap in the 100 highest momentum stocks is about 50% recently, and that's almost as high as it gets, right? so in other words the market has been leaning so heavily into the stuff that has been working best, that's why maybe we've set the groundwork for maybe a little bit of a hiccup here. >> morgan stanley says they'll rise 50% this year. they talk about mentioned of m & a on corporate transcripts, highest over the last two quarters. refreshing it today. we'll see. they talk about better

confidence and maybe some easing regulation. >> confidences are a very important of the m & a market as we have said many times for many years. but right now, i don't know. i had a lot more, i would argue, through positive language from the bankers and lawyers i spoke to last year than i've been getting a bit more currently. we'll have the pace. there was a hope and a thought that a lot of companies would be willing to face a lot of potential regulatory risks with more boldness, but it's unclear whether that's going to be the case. then, of course, you have the election. the hope programmes 'among some there would be a change in regulatory tone even if there was a continuation of the biden administration. so i don't know. we'll see. there's a pace of m & a. there's a hope it will certainly be better than last year, but i

would argue the conversations i've had -- and it's not been nothing more than anecdotal -- people are hoping for last year's ending. >> the morgan stanley type of analyses, you look at how m & a activity right now, any metric you want to look at, it's really lagging. it's probably hard to look at somehow they've gotten religion and said, oh, m & a doesn't revalue. we had this whole year of anticipating recession. that put people kind of in the freezer in terms of making any big moves, and then emerging out of that, now it's sort of like, wow, let's show what our ai strategy is and show some capital displen and those are the things we're emphasizing. we'll see. i think the capital one/discover deal is kind of interesting as an effort. i also feel like it's a little bit of a change the subject kind

of deal where we're at this point in the cycle where all everyone wants to talk about is the delinquency. we can capture and discover network and figure that's strategically more than the sum of its parts. we'll see how that one plays. >> we'll see how long it takes to get a quote of the approvals, at least extending the timeline where companies are willing to deal with it. you know, we're waiting for more headlines. it's another monday. >> some deals that could have happened are happening. >> yeah. i mean the choice keeps coming at them. you know. they're obviously disappointed that windham is not interested.

they've been trying to get their attention or get the shareholders to join them. >> and we've had toby rice on many times who runs eqt. a once i-in-a-lifetime opportunity. you can see right now at least shareholders in part, again, all stock deals. you do set it up for the art as well. they're not overly happy. etrn is the sim woll of the acquired company if you want to take a look as well. yeah, that is one of the few

deals perhaps this morning that i wasn't sure we'd mention it, but we did. it was worth about 1250 at the time. about 4.0354 shares. you can see the movie is moving down quickly. >> broad action in the morning is the momentum. you have apple, alphabet, as leaders on the upside, meta dragging things. we komts to see what we saw friday morning. another one that has been a weak stock is nike. we got an update from gug guggenheim. really it's down a lot and there are expectations built in. i was looking. in terms of nikki haley's premium, it rarely trades below a 20% premium. maybe for a few months over the last few years it's there. it has been there now. barely so. it didn't seem like basically saying, you know, there's a

competitive threat in running. we think that's discounted in the valuation right now. nike up 1.8% on the call. >> there's a solid flow on the news. apple reports that it's going to build a new flag ship store in shanghai, which is interesting given the reports of weaker iphone sales there. procter says they may be on the cusp of growing better than their peers than truist can remember in their recent memory. and then there's boeing. they've opened a probe. that coincides with the comments from delta that maybe these max-10s do get pushed out to 2027. >> yeah. i mean, it's -- not ohm the max-10s, but that's -- that's the entire trade at the moment,

right? it's the cash flow that was supposed to be coming through. it looks like it's been deferred if nothing else, that has been very tough. >> it's also striking how boeing has by kind of sitting out this tremendous run in broader endoes treeials it's shrunk in relative performance to the industrials trade, to aerospace, and de-spence. $118 billion market cap right now. >> in addition to that, some fresh ipo news today. reddit made public over the weekend. for the that we're going to turn to our leslie picker. hey, leslie. >> yeah, they're kicking off a road show this morning. here's what we learned in thetheant -- the amended selling is it's selling between 31 and $34 a

share. mostly employees and executives are offing the rest. a $748 million ipo at the high end makes reddit the second largest listing in the u.s. this year, although, it's the most anticipated. it fired confidentially in 2021. reddit defines itself as a global digital city where 7 million dailitive users collaborate with communities on common interests. reddit estimates its total addressable markets for modernization will comprise trillions from advertising ai and commerce from 2027. top line revenue from 2023 mostly from advertising grew 21% to $804 million, and although the company was not profitability, it gross margin was 86%. f ceo and co-founder steve

huffman and coo jeff jenn fehr wong plan to sell $17 million of stock at the high end of that range and the cfo is selling into the offering as well. however, adventure investors affiliated with tencent, fid fidelity, just to name a few, is not planning to sell. reddit is selling ipo for users. they've also been present in other consumer-facing deals such as airbnb, robinhood, with mixed control. guys. >> the lockup is a little different on those? >> so those would be sold to retail investors. basically it's the same as anyone buying into the ipo. if you're buying them at that price, p it's the ceos who are

held, usual lil six months or so. but if you're a retail investor and you buy in to the ipo for the offering, you can sell on day one, should you so choose. that's why we see some vol tilts on day one whether people decide whether they want to bulk up their exposure or flip out of it if the stock is trending higher. >> meanwhile we got information on their inspectsed things like ai and advertising. this was down from a prior round was it in '21? >> yep. that's right. in '21 they were valued at $10 billion, so it'sa 36% discount there. right now they have 98% of the revenue coming from one source, which is advertising. they say the tam for ai is up.

and they talk about kmerns with digital goods being sold on their platform. that adds another few trillion. i think it's $4.4 trillion by 2027 for advertising. i think that's kind of the pitch to investors that we've scaled our advertising program. 98% of the revenue is tle le ve lals night oppenheimer was the huge win. universal, our parent company, the first studio this century to end the year number one at the box office and win best picture. the other big story, of course, is how the streamers, apple,

killer of the moon and netflix didn't perform. >> you wonder if the effort by them to bankroll the high prestige of using the awards. maybe that was going to happen anyway in terms of giving money to a director to do whatever they want. >> the ratings started earlier. >> you had the very popular movies in the mix. we'll see. >> we'll be getting that latter on today. meantime as we go to break, not a lot of data as we brace for cpi tomorrow. retail sales and ppi on thursday. empire, i.p., u misch on friday. south of the border. don't go away.

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stock continue to pull back this morning. s&p trying to hold 5100. let's get to bob pisani at post nine. >> a little bit of a pullback but we're having market rotation i love to watch. take a look here. we have utilities, not a great performer recently doing a little bit better today. materials which have been on a tear recently that's been a reallystrong sector. consumer staple not one of the stronger sectors last year, obviously, doing better, and tech lagging. we have meta, micron, amazon, microsoft, amd down today. i think the important thing is that line, you want to look at stocks advancing than declining. if you held broad portfolio stocks that's what matters. the s&p 500 advance-decline line. a new 52-week high.

the russell 1,000, the broader index, new high as well. russell 2000 is not hitting the advanced-decline not hitting. it's below that. a broad market advance. all sectors up year to date. when i talk about broad advances tech up 11% with the recent pullback in big cap tech stocks like nvidia and apple. financials have been strong. health care has been strong. you have the three biggest sectors including industrials there other than technology, all up 7% on the year. energy is up, consumer staples are up 4.5%, under performing the s&p. you get the point here. consumer discretionary was huge largely because of what happened with amazon. the s&p 500 is marching in line with the s&p 500. yes, we're getting a little more out performance from the market cap weighted s&p 500 thanks to the out performance of

technology, but you see, it's holding its own here up 5% versus 7% on the year for the s&p 500. finally, on the ipo front there's a lot of excitement about reddit. i wish them well. i'm not terribly excited about reddit. here's what i am excited about. asster ra labs is coming next week trading on wednesday at the nasdaq here. what these guys do is they provide advanced connectivity semiconductors for data centers. it means they make semiconductors that make the data centers run more efficiently and faster. you move the data around faster than data centers this has artificial intelligence and semiconductors all wrapped up into one story. this is what everyone has been waiting for. where is the big ai ipos? not reddit. here it is. keep an eye on that one in my opinion. in the meantime the ipos this year have been doing fairly well. remember don't mistake a market

going up for being a genius in the ipo business. here's the renaissance capital ipo etf. this is a two-year high for it just recently again overall market advances in what matters here, it's been doing fairly well recently since february against the s&p 500. i guess overall let's see if we get a real market advance here on ipos. klarna targeting the second half i see. we talked about harry's razors last week. viking cruise filed kf kengsal, i don't know what that means other than the cruise business has been hot. let's be hopeful. watch asterlabs. >> the lack of related ai ipos. there it is. >> going to be exciting. i'm excited. >> mike, thanks for the help this hour. talk to you later this morning. when we return the eu competition commissioner on regulating apple and big tech in a moment.

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 from post nine of the new york stock exchange. take a look at stocks starting the week off in the redhead of the key inflation report and in a quiet period for the fed. the s&p down 0.5%. there is green inside the market. sectors like material, staples and utilities are outperforming today. technology is at the bottom of the pack why the nasdaq is giving back 0.6%. after the reversal we saw friday, i should say, started the day strong and ended up very weak, so one week change for the s&p 500 at this point. down 0.6%. take a look at treasuries at the moment. we're going to get a lot of auctions in the beginning of the

week. big supply week, 10-year and 30-year on tuesday and wednesday. there we are with the mixed picture. the 2-year yield firmer at 4.5%, buying at the longer end of the curve with yields lower around 4%. 30 minutes into the trading session, three movers we are watching, choice hotels walking away for its bid for rival wyndham hotels after failing to gather enough support from wyndham shareholders. bitcoin hitting new all-time highs, $72,000 around there. crypto related stocks like coinbase, micro strategy are surging. and watching nvidia coming off its biggest one day loss since may of last year on friday as cantor fitzgerald raises the price target on the name to $1200 a share calling jensen huang the soothe sayer of santa clara. of course, you will get an analyst buy after a 10% intraday reversal. >> talked to him, feels good

about what gtc may bring next week. >> as for the week ahead the big number comes tomorrow, that's the cpi report. consumer prices. that number has a lot to prove because we got a hotter january and folks are wondering if that was an outlier because of weather, because of the owners' equivalent rent people were worried about which popped a little bit firmer and has disconnected from overall rent numbers. thursday is an important one because we get retail sales which has a little bit to prove because january saw a dip and wondering if that was weather related. more evidence points to the same. if we do a deep dive into inflation, that's where i want to focus, because the expectation is for 0.4% rise month over month change in the month of february, which still points to firmer inflation and according to a jpmorgan trading note this morning the conversation among their clients has gone from are we going to get recession to are we going to get a second spike of inflation

or a hotter sort of inflationary outlook because that very much goes against the narrative that the federal reserve is going to be cutting in june, which is now fully priced in and we will get four cuts this year, which is also fully priced into the market at this point. >> what would be -- i mean, obviously, overall demand i guess would be the reason, but what are we looking at and -- that would indicate that is a real risk? >> well, a lot of things. first in the january report and we've been seeing from some companies, a little bit firmer food prices and i know the fed likes to look at core which strips out food and energy, how we pay a lot of our bills, it's important. we're looking at the services part of the economy like health insurance and education services, which have all remained elevated. we're looking at travel and tourism, hotel prices, airline fares which kind of have come down a little bit but are still pretty elevated. former president trump was on

"squawk box" this morning, and he did talk about this notion which is very much in the political sight and in the markets about higher inflation even though rates of sflaigs come down. listen to what he said. >> i believe we have accumulative inflation of over 50%. that means people are, you know, they have to make more than 50% more over a fairly short period of time to stay up. >> here's a chart of cumulative inflation where versus where it was a few years ago. it is up sharply around 30% since before the pandemic and we've heard that from the food ceos we've talked to. just because inflation rates have come down doesn't mean price have come down. they've gone way up and i think g gary cohn explained this friday when he was with us just because you get a 3% or 4% inflation rate on top of the 6% rate you had last year that's 10%.

>> people's memories are longer and they remember back to 2019 or 2020 when things cost substantially less. >> you feel it. >> of course. particularly, you know, wherever you -- >> particularly on the grocery store bills. >> when it translates back to the idea of more inflation coming, you have a litany usually of transcripts that you share or parts of conference calls in which most of these ceos seem to be talking about questions about demand from their underlying consumer. >> more questions about demand and less questions about accelerating inflation, absolutely right. we're hearing from the conference calls disinflation. >> yeah. >> even some deflation. walmart uses the "d" word on goods prices and we've seen that on goods prices. there's no reason to think inflation is going to hook or spike back up. that's not what the market is expecting. inflation expectations have been fairly calm and again, market continues to price rate cuts. there is this sort of lingering

worry that it stays stubbornly had high. in terms of how americans are feeling it, it was notable the journal report on 401(k)s this morning i thought and how people are pulling out their money at a faster rate because of economic hardship because that's how, you know -- why you would go to your 401(k), your nest egg, to pull out money. they did a chart showing the numbers, continue to go up. now part of it is those numbers have gone up because asset prices have risen. 401(k)s have done well in terms of performance and grown, but if people are pulling it out like a cash machine because they need to pay their mortgages or bills and we are seeing higher debt levels on credit card bills, that's a sign worth watching. >> yeah. strange because fidelity said the number of seven-figure 401(k) accounts jumped 20% in the final quarter of the year and bofa with a note about the level of excess savings that remain, labor market tight.

90% of people with lower mortgaged rates fixed earning higher amounts on cash. >> you have this automatic enrollment they talked about as well. some people may not have wanted to or known so -- >> more technologically easy to do it. >> i have this money i didn't really sign up for or plan for. >> this was vanguard, we should cite, because that's what was cited in the journal. look, you can see whether they're doing it for financial emergencies, right. you get penalized if you are pulling out your 401(k). it's kind of a must have type of thing. we'll watch it with the other data. we're going to get new york fed read on consumer credit at the top of the next hour which we'll pay attention to, but as far as demand there's a question about inflation and we'll get the demand side of it on thursday with retail sales. >> our next guest warns if

former economic continues it will threaten stocks through higher bond yields and added pressure on valuations. global investments chief investment officer bob dahl joins us this morning. good to see you. good morning. >> happy monday. >> we've been seeing some year-end target increases lately and a lot of them are accompanied by reasons why valuations aren't a concern, that it's more 95 than 99, let's say, according to bofa on friday. what's your take on all of it? >> i think there's some capitulation going on. anybody who has been on the cautious side has been wrong and so, you know, if you have an s&p 500 year-end target with a 4 handle, most people are moving up into the 5s and holding their noses and breath. the market at 21 times earnings is priced for some really good news. i'm not sure if we have all the good news. the fed has got to cut a bunch, at least three times, earnings

grow double digits. do those two things hang together? i'm not so sure. in my view a very good litany of things we talked about. what i would add to your conversation is the covid savings according to most is basically ending. those of us calling for a recession last year missed, i think, how much excess savings there were, but that seems to be ending, and the 401(k) withdraws are part of that story. >> so are you calling for recession still? >> yeah. i've not given up. it sounds like a diana suore bu we're only 24 months after the fed began raising rates. that's the normal amount it takes for the flags our economy to begin -- flags our economy to begin economic weakness. i don't know when it starts. our prediction is some time this year, but the jury is out and so far so good for the bulls.

>> yeah. there is some folks that are going back to that inverted yield curve, such a good predictor of i think a near perfect predictor of recession in the past. did we get it in 2022 when we had two consecutive negative quarters of gdp or is it coming or is it just not a good signal in this kind of inflationary environment? >> three great possibilities, sara. i'm still of the view that it matters and that that two negative quarters caused by inventories and trade, is not a recession and so, therefore, we have one in front of us. >> bob, you say you talk about holding your breath here. you know, on the multiple put it in some context for me, you know, i am curious why it would be a hold your breath kind of multiple for you? >> we are in a momentum-driven bull market where valuations are

high and where expectations are lie, so when i say hold my breath, how long can we hold 21 p/e? if, in fact, rates are not able to be cut as much as the market thinks or as importantly, we don't make the double-digital earnings growth people are calling for, we probably have risk to that 21 is not sustainable. >> you don't believe we're going to see those double digital earnings increases that would be necessary to sustain it? >> i don't. we're beginning to hear -- you talked about companies talking about some demand issues. i would add to that pricing power isn't what it was. cost pressures. we're going to see more wage growth pressures. i don't see how we get the inflation rate below 3. obviously, the number we're likely to see this week is going to be a 4 handle. maybe it comes down some, but nowhere near the 2 the fed expects. >> finally, bob, some discussion

over the weekend that the troops are so-called joining the generals if you look at what's happening with the iwm and small caps or at least s&p equal weight and that their delayed reaction to the upside to the october lows is a sign of what happens in big bull markets. what's wrong with that? >> nothing wrong with it. it is a good sign, bullish sign the market is broadening out. the value line, for example, is still not made a new high and so i think we still have a ways to go to make that point. could it be that the generals sell off and the small stocks do a bit better and we have a sloppy side wise trading market? that would exist for a while. >> appreciate that. always good to check in with you. our thanks. >> thank you. as we go to break a road map for the rest of the hour. bitcoin, new record highs today and a lot of crypto related names surging. we'll talk about that. >> reddit's ipo road show kicks off. what investors need to know about that upcoming initial

public offering. >> regulating big tech. an interview with commission vice president the top antitrust cop margrethe vestager. "squawk on the street" will be right back. don't go away. 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. (♪♪)

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fine a week ago from the eu for unfairly favoring its own music streaming service. plus europe's digital market to reshape the tech dominance from for all sorts of companies including apple, amazon, meta and others. joining us is european commission vice president margrethe vestager who joins us from south by southwest. great to have you back. welcome. >> well, it's great to be here. thank you very much for having me. >> let's start with the apple fine because that was just last week. it was a big one by your standards. moved apple's stock. apple responded in a pretty fiery response, i would say. they think the decision that you reached had failure to uncover, i'm quoting them, any credible evidence of consumer harm and ignores the realities of a market that is thriving, competitive and growing fast. what do you say to that? >> well, i think it is quite obvious there is consumer harms if consumers have no choice to find the cheaper offer of their favorite music streaming

services. there are music streaming apps on the apple app store and, of course, you can choose to pay the 30% fee, but it would be good if you could also know that you can go to the service's own website and get a cheaper offer. that is what we are challenging, saying you can have your fee, you can have your 30%, but you cannot say to those who use your service, you cannot tell your customers that there is a cheaper offer. you cannot communicate with your customers yourself. >> was there evidence of consumer harm? >> well, if you look at the price difference because these app developers have no choice but to pass on the apple fee to their consumers, you see 30% price increase compared to what you eotherwise could have paid. most would agree that kind of price increase compared to a cheaper offer is real harm to consumers. >> in their response they targeted spotify pretty sharply saying they were the primary

advocate, which you know, and the biggest beneficiary and say you met with them 65 times during the investigation. you feel like you were caught between a corporate battle between spotify and apple and sided with the home team based in sweden? >> well, not personally, obviously, since i have a ton of other things to do as well, but it is true that in every case we have, we work with market participants, which means that we have very, very, very good experience in figuring out what is real proof and what is just vested interest. that, of course, is absolutely key. it will go to the compliance to the market that we want to hear from third parties do they get what dma is supposed to give them, an open market where they can compete? >> do you call the fine, i think a speeding ticket for apple, obviously, in the context of apple's overall market cap and their profitability. what is the point of these fines? does anything actually change in

the underlying business? >> well, it's a fine that's the equivalent of 0.5% of global turnover. this is not a fine that will sort of shake apple as such. what it does, it punishes past behavior and for the future not to be able to say to their app developers you cannot tell your customers there is a cheaper offer. it's a forward looking approach to this that is the really crucial things that things change soconsumer have choice. >> so i remember talking to you back in 2016 about the backs taxes case where you fined apple $14 billion in ireland. that is still caught up in the courts going back and forth. i wonder, apple plans to challenge this one. alphabet has challenged. how long you expect this to play out before eventually getting some sort of resolution? >> well that is indeed difficult to say because the court sets its own calendar and the

european union is a union built on the rule of law, 100% to go to court and challenge our decisions. we will all learn from what they say. >> does the music decision apply to google which also runs its own app store? >> well, the dma applies through google as it applies to apple. you cannot have antisteering, a ban, a contractual ban, to tell your customers that you can have a cheaper offer, that would go for google as well. >> what about spotify in all of this? they are dominant as you say, and that was one of the concerns, there wasn't enough competition. given their scale do you expect them to be labeled a gatekeeper in the new dma legislation eventually? >> well, it depends on the numbers, obviously. i think in sort of apple focusing on spotify they willingly also ignored there are other music streaming apps on

their services and their customers will benefit from a cheaper offer as well. >> okay. is apple compliant now at this point with the dma? >> that still remains to be seen. we are now analyzing what they have changed. we're looking at their compliance report. there will be a nonkf dngsal version of the compliance report available for everybody to see, and we'll have a series of workshops where apple can show to the outer world what it is we're doing and see if it will open noncompliance cases. one of the things we'll look at if there was a fee structure that prevents developers and their customers to get the most of what the dma has to offer, that would be one thing. second is that we have had what we call sort of a regulatory dialogue with apple because in the time they considered banning

web apps, also you saw that the ethics were taken off the app store as well. we have back and forth with apple and, of course, it's the one priority for us to make sure that there's compliance with the digital market site. >> as i understand it they are opening up a little bit and allowing developers to distribute their apps outside of the app store, but on the fee question, they have introduced these new core technology fees of 50 euro cents per user each time a developer opts not to use the apple store or payment system. is that okay or not? >> that is exactly what we will be looking into. we have not taken issue with the level of the fee of the 30% that apple used to apply, but what we might take issue with is whether or not the fee structure prevents developers from actually using the benefits of the and still be captured within the apple ecosystem. >> what's the time frame here?

how much time do you give them? >> the time frame is pretty short here. the time frame is pretty short. i think once we open a case we will have six months actually to reach a decision, so we're talking about things that will happen within indeed a fore seeable timeframe. >> i noticed last week google announced they would connect an initial and ongoing commission on transactions that involve a link out. is that legal under the digital markets act? >> i failed to hear the first part of your question. i'mreally sorry. >> that google announced they're going to collect a fee as well, an initial and ongoing commission on transactions that involve a link out of their app store, is that legal in the digital market act? >> our consideration goes for everybody. we do not have -- we will assess that as well. we have no specific thing going on with apple. it's for everyone who has been designated a gatekeeper they

will have to comply, that goes for google, meta, for apple, that goes for bytedance for that matter. >> have you had a chance to review the compliance forms? i know they were due last week. what do you make so far of some of these proposals? are they on the right track? >> well, so far the teams have been, you know, really deep in every detail. we see a lot of good things happening. we see that some companies are really doing their best in order to comply. and we see a situation where we have doubts and now we want to hear from the companies and we want to hear from third party how they experience the compliance and then we'll see if noncompliance cases will be opened. >> i am curious about tiktok and how you're thinking about that, especially after this morning we heard from president trump on this show and we're seeing new legislation introduced, what would force a divestiture of tiktok by byte dance. are you looking at similar legislation in the eu?

>> well, there are two issues at stake here. one is sort of how does the market function. do they play a role in the market, the tiktok social media? they do. tiktok apps, very, very tiny in europe, but then, of course, as the economic security discussion which is a separate discussion, for the european commission and we have taken the consequence not to be on tiktok or have tiktok on our phones, but we do not have the same discussion in europe. it may come due to economic security issues rather than competition. >> got it. what about the ai act? i think the european parliament is voting this week which could be a crucial moment on the ai act? what is the timeline of events that will go from there assuming it passes which people do? >> i think everybody assumes it passes and it will come into effect in a sequence. the first thing is to come into effect of the certain views of ai like social scoring systems, embedding ai in toys that could have adverse effect for

children, like the ban of live facial recognition surveillance in public space and then the watermarking of artificial intelligence comes into effect. so, obviously, we're very, very careful as to what will happen before it comes into effect and we are in dialog with the big tech that has signed up to make sure watermarking is available because this is the biggest election year i think no one has escaped that fact on the planet, and of course it is really important that the platforms enable us to see what is real and made by artificial intelligence. >> but shouldn't you be working with the u.s. here on a law like this at this stage of the technology? i know that a number of big european companies, heineken, they penned a letter saying that you're risking european competitiveness going at this in part alone? >> we've been working with the u.s. since the very first meeting of our trade and

technology council to have the same approach to artificial intelligence, which is not to regulate technology, but to regulate the use of technology. and that also means that innovation, research, all of that is not touched by the ai act. it's when you put it into use. the points of our regulation is for people to trust technology. that you can use it without the risk of bias in the use cases. we have very big public sectors in europe and they should be part of the demand sort of push for the use of artificial intelligence and, obviously, no public sector service can have a biased towards one gender or another, one religion or another, one social class or another, so we see it as a way of opening the market for ai that can be trusted. >> you don't have an openai? you don't have a microsoft or alphabet? why not? why doesn't europe have these

things? some might argue because of regulation like you're posing. >> i definitely do not think so. these reasons are very i think trivial. we do not have a capital market as you find it in the u.s. we did not provide a digital single market in the first big wave of digitalization. one would be to make sure smaller companies can have access to the high performance commute capacity of the european union where you find some of the world's best computers. because you need that kind of capacity. it, of course, it is amazing and thrilling to see how the cooperation between big tech and smaller companies can develop because the compute power is available. >> commissioner vestager, thank you for taking all the questions. >> it was my pleasure to be with you. >> thank you. >> indeed. thank you very much for having me. have a nice day. >> in austin, texas. margrethe vestager with some

comments. clearly in response to apple and that fine and trying to comply with the digital markets act. all these companies submitted their compliance reports last week. i'm sure the lawyers, her team, pouring over it, tight frame and figure out who gets fined for compliance or not in the next six months. >> collision course as people talk about big tech vis-a-vis the eu. a leg lower, dow down. s&p lost back to levels we basically saw on wednesday, the low there about 509 2. bitcoin keeps climbing. ndheatt tea orn news across the po t lesafr sht break. u 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]

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backed exchange traded notes. micro strategy and coinbase continue to ride this rally, micro strategy buying more bitcoin. michael sailer joined "squawk" this morning to talk about that move. >> bitcoin as a superior investment to gold, equity bonds and real estate because it's digital. you can trade it a million times faster than conventional assets using a computer. it's available. most other assets only trade less than 20% of the time. bitcoin is trading 168 hours a week. we bought $800 million of bitcoin and a lot of it we bought over the weekend when all the conventional markets are closed. >> shares of micro strategy more than doubled year to date up 145%. meantime guys, a target increase on coin from jeffs at 160 to 245 as a result of the ecosystem enlarging at this point. >> chasing the rally of some of these stocks, who new bitcoin

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welcome back to "squawk on the street." i'm contessa brewer with your cnbc news update. secretary of state antony blinken is on his way to jamaica to address haiti's security collapse. the security department says he will discuss a proposal as gang violence threatens to bring down the government. the first humanitarian aid ship bound for gaza is facing a third day of delays. it remains docked in cypress with 200 tons of food. the charity leading the mission says its goal is to set up a humanitarian corridored to gaza. meanwhile a u.s. army vessel has left for the mediterranean

carrying equipment to build a pier to receive aid off the gaza coast. today marks four years since the world health organization declared covid-19 a global pandemic and sent stocks spiraling and prompted an oval office address from then president trump. in a matter of days shutdowns began across the country. covid-19 has killed more than 7 million people worldwide including more than 1 million americans and carl, a lot of people are still trying to figure out how to avoid those symptoms of long covid. >> indeed. thank you. contessa brewer. momentum building in congress for a bill that would ban tiktok in the united states unless its chinese parent company divests it. speaking of former president trump he joined squawk this morning and weigheded in. >> i'm not looking to make facebook double the size and if you ban tiktok, facebook and others, but mostly facebook,

will be a beneficiary and i think facebook has been very -- i think facebook has been very bad for our country, especially when it comes to elections. >> check of shares of facebook today, meta down almost 5%. that's going to be the worst day in several quarters. let's bring in emily wilkins with the latest on tiktok and congress. great chat on "squawk" prior to the president's interview about the complexities behind this measure and the lobbying forces behind it. >> it's very interesting to see this tiktok bill now. it was just introduced last week. then it got a committee markup where you saw 50 lawmakers go ahead and support this measure and now you're going to expect to have a house vote on the floor on wednesday. i know that former president trump really honed in on meta and that's kind of been the source for more of his comments on the tiktok ban, but remember when trump was president he did try to ban tiktok and it was a national security concern. this is the big concern for lawmakers. this the reason they're pushing

it forward. the question here is the bill going to be narrowly tailored enough to avoid the issues that other tiktok bans have run into, concerns over freedom of speech, concerns over, you know, the bill actually -- tiktok being named in the bill. there's a constitutional question around that. so it will be interesting to see what kind of support this gets in the house and then the big question could this be put to a vote on the floor in the straight. at this point chuck schumer has expressed an interest in the bill but has not said whether it's going to come for a vote. if it does at least president joe biden said over the weekend that if congress passes it he will sign it. this is a lot of momentum for a bill to get in a short period of time and really speaks to the wider concerns in washington, d.c., right now around china and national security. >> so, you know, tiktok's owner bytedance is a prifvate company. we've talked about it given its enormous size despite being private and we're already

speculating at this point about what byte dance could do to retain value, so to speak, and meet the objections of lawmakers, avoid the ban or do what needs to be done. do we have a sense? do they need to recreate the algorithm? do the servers have to be in the united states? i remember going through this in the fall of 2020 when we were talking about this, when the trump administration was moving towards a ban. >> it's a good question and seems like byte dance is who this bill is targeted at. a couple lawmakers come out and say look, we love tiktok, we know our constituents love tiktok. we don't want to ban tiktok. we want to ban is the ability for a chinese company to get all this data that tiktok collects on its users and that is at the heart of the earn can here. as far as what byte dance can do, they're not going to divest tiktok. they've tried other things, project texas, building servers in the u.s. but it has not been

enough for congress at this point. that's why you are kind of seeing this groundwswell of support. there are larger government studies going on into how much of a security threat that poses. those have been under way for more than a year but lawmakers have said we've had enough concerns and heard enough and seen enough and it's time to put this ultimatum on the line. we don't have to ban tiktok but tiktok and byte dance need to separate. >> i want to throw in context around the trump bashing of meta and saying that it was the enemy of the people. i mean in a way, not super surprising, right, because facebook banned trump at one time from using its platform. also there was this narrative going around that mark zuckerberg donated $400 million to help get president biden elected when it turns out that the donation was actually to two nonprofit organizations that were helping with elections,

conservatives think they helped with biden. there are a few threads out there i feel like are important context for the meta bashing. interestingly the stock went down on it and you do wonder what a trump presidency would mean for a company like that when he has beef with them? >> it's not surprising to see trump kind of going after those who he feels has wronged him or hasn't been loyal to him. that was a trend that we saw with his presidency. you're already seeing reporting that there are folks interested in buying tiktok. you really haven't seen meta enter that part of the discussion. doesn't mean they won't, of course. but there is kind of a question if byte dance tries to divest tiktok what will that mean for tiktok's future. a profitable company. maybe a media company could buy it pitched as a news organization. you've heard lawmakers say we see china's ownership of byte dance and of tiktok being similar to say if china came in and bought nbc, cnbc, and those

news media organizations. >> yeah, but it gets back to a more difficult thing to ascertain, do you keep the algorithm or not the key asset in many ways. otherwise you're buying a user base and you have to recreate the algorithm. that's the side i'm going to keep working on, trying to understand from byte dance's perspective to retain value for what is a profitable platform, largely in the u.s., therefore contributing to byte dance's value that some $220 billion even with the discount perhaps being applied as a result of these fears about a ban here in the u.s. >> it's enormous. >> thank you. president biden set to unveil his budget proposal today. meghan joins us from the white house with more on the president's priorities. meghan, what do we expect. >> hey, sara, so ahead of the full report being released today the white house is giving us a few more details on its 2025 budget plan. the administration says its proposal will cut the deficit by $3 trillion over the next decade

a figure biden hinted at last week in the state of the union address. on the spending side calling for greater investment in manufacturing and clean energy. he wants to strengthen medicare and social security and provide national paid leave. we're expecting a focus on efforts to lower costs for families in part through investments that would make child care and college more affordable and he will propose a 400 monthly tax credit for first-time home buyers. on the revenue raising side, this is something we heard pushed in the state of the union, biden wants to put corporations on the hook here. he'll be raising corporate minimum tax to 21%, crack down on corporate profit sharing and imposing a 25% minimum tax on billionaires. guys in the next couple hours we'll get specific numbers on exactly how much biden plans to spend and expects to raise through these plans. but for now at least we can see his policy priorities heading into the election. >> we'll be looking for the reaction on the hill as usual. thank you so much. as we take a break check out

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anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. . welcome back to "squawk on the street." i'm pippa stevens. the tech sector is extending friday's decline with nvidia

moving between gains and losses following 6% drop at the end of last week. its worst day in nearly a year. cantor fitzgerald raising its target on the stock saying the software opportunity is only in the first inning. morgan stanley also reiterating its overweight on nvidia. netflix in the green as "oppenheimer" takes its target to 725, implying 20% upside from here, pointing to continued tailwinds to subscribers from paid sharing and advertising. that stock is hovering near 52-week high, sti still down from 2021 all-time high. apple and tesla bouncing back, although down in the last month as china demand continues to weigh on apple as demand for evs slow, tesla aroundts i lowest level in yearly a year. back in two minutes.

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major plays in a sports game. giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. we're learning more about the reddit ipo.

leslie picker joins us with more ahead of this anticipated i. . o. >> today's filing is updated with a price range, offering size and shareholder details. the price range is 31 to 34, applying fully diluted value of $6.4 billion at the high end and offering size of $748 million. who's selling and who's buying? on the sell side, lots of employees and executives. those in the c-suite, 12 individuals in all, are offering the stock. steve huffman is among those. and employees is selling sales. notably missing is venture capitalist. the company itself is offering $15.3 million, proceeds of which will be invested back in the company. this amounts to about half a billion for reddit.

who's buying? the company is setting aside 8% of the deal, or $60 million or so for users and moderators as well as certain directors and friends and family of employees. the rest will be coming in the fourth quarter road show which will be in person and virtually. the company is listing on the nyse under symbol rddt with debut expected next thursday. guys? >> leslie, anything behind that? bob was talking about an interesting a.i. related ipo because there has been a bedear of ipos in what has been an overall strong stock market. >> i've been asking the question -- you mean with regard to the anchor investors, why we're not seeing an anchor investor here? >> more why we're not seeing ipos in general, i guess. >> more ipos in general.

it's pretty remarkable given the back drop of the overall market. you have low volatility, increasingly more bullish towards calmness in the market, based on some interesting options plays. and yet we're not seeing much in the way of ipos. i think a large part of this has to do with the fact there was such a big gap between what companies were issuing their stock at last year and what the buy side was willing to pay. there's some skittishness around marketing a deal not getting a good sense of how the buy side wants to value it. that does take time, but it will -- it's one of those things where i think a lot of bankers are waiting for that gap to converge so there could be more deals. we'll see if reddit does the trick. >> thank you. with the nasdaq back to almost even after a fairly significant fall to begin the market day. we're going to keep an eye on all of them right after this.

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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! good monday morning. welcome to "money movers." i'm sara eisen with carl quintanilla live from the floor of the new york stock exchange. today oakmark'