150 points s&p futures off by 10. the nasdaq is, up by this point, 32 10-year has been picking up. above 1.8% sitting below that at 1.798% that's the big question for the day. we'll be back here tomorrow and we'll see you then right now time for "squawk on the street." good monday morning. welcome to squat on-- "squawk o the street." i'm carl quintanilla with david faber and jim cramer it'll be another busy week more than 100 s&p earnings, a big faang names and jobs friday. road map begins with a dismal month for stocks coming at the close. spotify moves to address covid misinformation

will it be enough to contain a growing list of musicians who are asking for their music to be removed from the platform? and i'll have more on that very large lbl this morning. purchasing citrix. as i said, one of the biggest we've seen in some time. some complexity to it, as well meanwhile, guys, 105-point gain on the s&p friday jim, quick, what was that about? >> well, i think that one of the things that might be happening is that in the great bear markets that i've studied, there tend to be people who make money all week but short sellers and they want to cover their shorts just in case something good happens over the weekend. it's the exact opposite mind set. i think that had a lot to do with it. i alsothink that people, david you know, apple is such a powerful part of people's equation. >> yes. >> people start saying, you know, wait a second. let's reopen some of the books

so they brought up the semis came back. they had been terrible terrible you can see midday got this thing happened a service now. and we had done it it was the beginning of higher multiple, profitable companies starting to gain and, of course, oil has been consistent. but service now was very good. that was a stock that was only up by 4% and it kept going so a lot of shorted names. let's not forget even cathie wood, there's a lot of talk about cathie wood. we had that -- >> they had -- >> yeah. >> i was kind of making a joke saying even i could not be so cruel to come up with. it's anti-someone. but that's -- it's interesting to me he called her cathie woods. >> i know. they were incorrect in how they presented her. >> yeah. at the end of the apple call, he

said, listen, i've got the iwatch i feel like i have a halo behind me oh, thank you. >> oh, yeah. you do. >> arctic -- >> yeah. 2.4 million shares unloaded some spotify. to your point about revisiting some of the books. upgrades today for tesla. >> yeah. >> for netflix and spotify. >> right i mean, one of the things that is so difficult for the retail investors they have to cut the price targets. i'm used to a price target is cut, carl, for the stock to go down but, you know, service now if you're using a $7 price target, you want to raise your rite -- rating or boost it the stocks come down i'm raising my rating x but cutting my price target 150 it's just not -- it's hard for retail people to understand there is enthusiasm. in the meantime, there were batteries at the end of last week i happen to like the stock i like caterpillar very much when you listen to that call,

the expenses, the margins terrible i mean, and they did good! >> yeah. >> they had big slowdown in china. and then the one we didn't talk about at all 3m is combat arms litigation and how, at one point, it could be an unfathomable risk to 3m. >> i feel people were saying about that with the water. and, you know, these companies manage have a litigation strategy that seems to manage and contain the risks for a long period of time. >> right what i thought was interesting there was an article in the "new york times" january 28th but what happens is first you get the negative then you can put the negative into context so 3m said we're fighting

figgously and going with our filings. then you suddenly discovery can wow this is a little worse than i thought. and then it is settles in and you realize it was a mistake to sell 3m. while you're reading steve's piece, great jpmorgan analyst, you know, at one point, he said, look, i'm going to use the figure trillion dollars but, you know, then start thinking about asbestos. >> what is your point about, you know, caterpillar. today it's otis guides below. >> i know. and that was an unusual. there it is again. what is it china slowing. i don't know if you caught the piece this morning, but it's just seems like everyone in china is on a line the productivity in china has to be terrible. >> we talked about this for a

number of weeks now. and it continues to be a key question as to how much the economy is slowing as a result of their zero covid policy, which continues unlike virtually every other nation in the world. >> it's all china. >> yeah. but what about the property sector there i mean, they continue to say it wasn't going to impact them but it does, i mean, it's hard to imagine it's not >>well, the state-owned enterprises are still building there are 10,000 different developers over there. all we do is hear about it at the same time china is a different animal than six months ago. we don't know how much is pollution free how much is changed. how much is a level of control of covid that just seems in a zero covid policy without the right. >> the "new york times" talked

about the level of control being allowed over the population as a result, as well, of the covid protocols. because it's all mobile, of course, and china has so many things are you basically have to cue in your health code and get your approval to enter anything or do anything it gives them another element of control which is something maybe the regime is happy about. >> eunice spoke about going to the drugstore and bought cough medicine. >> it's obvious there's any number of things the government knows. but what shocked me is if you're going to have lines there, i mean, china is a great engine of the world. and china is not right now it's just a down shifting edge the otis quarter first time they were forecasting a slowing in china we're not used to seeing china hitting the numbers. >> imf cut the china numbers

last week. cut our gdp numbers. q1 at .5 a fiscal cliff with the expanded child tax credit will hurt they think disposable income will go back to below prepandemic trend. >> this is what i've been worried about and the critics of jay powell put up something positive this weekend. there's so many things that are not -- that could lead to slower growth at the same time, we can't get bacon. at what point, if you look at semiconductors, they are trading as if that whole problem is over that there's going to be an inventory glut if you look at the collapse of amd, and the collapse of nvidia. >> is what you're ready to call them is collapses? >> well -- >> we can take a look and go back to any other time period and even a year and i'm not sure

i would call it a collapse. >> 170 what do you call 170 to 110? >> it's a down shift it's a down shift. or as a hedge fund guy, it's a draw down. whatever the heck it means. >> what you're saying is basically -- just because -- >> it's like your average. we've had a draw down >>well, i just think that -- >> nothing we could do about it. >> the stocks are forecasting that there will be longer be a streak. >> you don't think it's a function of lower multiples as a result of the environment. as we know, investors are not willing to afford the same multiples they were two months ago. >> i think the multiples were deserving. i think when you read about double ordering and what could happen and you realize that the lower -- the real problem is the, you know, 10 million smaller -- the larger versus smaller. the stocks are signaling that

ter dine and lam research -- >> they're not oneoffs. >> they're not one offs. >> i remember i think the firm was but it was a micron last year that said winter is coming. it was a return to classic sick kl times and two quarter inventory correction in the interim, you lost a tremendous amount of money david, all i'm saying is that i'm creating a view just as these people who say 50 basis points or six hikes or whatever are presuming nothing could go right. there won't a be a slowing i wonder if it isn't jay powell doesn't put up the numbers i think he wants to see and so then they claim the wait and see that's how he got behind the curtain. but what happens if everybody in this country has the experience of new york and covid blows through and we don't have quarantines anymore and people are trying do you think supply chain --

>> a lot of country has been at work even if it does blow through, it's not going to do what we do here we know that there are geographic -- there are different responses in regions in this country to omicron anyway. >> but do you any if every single -- by the way, semiconductor problems no on otis and supply chain. >> it's an interesting one, jim, what about return to office? we haven't talked about it in a long time. it now given at least in this area you have -- you're back to baseline again or close to it thankfully in terms of new cases and positivivity when are people coming back to the office you walk around downtown, we don't talk about it enough financial district or midtown which recovered a great deal, let's say in november and december things have been crushed as a result. >> i was saying to becky and andrew that labor has gotten -- >> even you can argue about whether we needed to take the same restrictions, it's depressing. >> we'll see

i think returns a week from today. >> the 7th. >> yeah. >> february 7th they return. at least a few days a week at citi it's not far from here >>well, i don't know it's funny we talk so often about it awhile ago but i think we missed the economic dislocation that has taken place, at least among small businesses. >> the economic scarring. >> correct i'm talking more locally a lot of viewers may not care because they're in florida. >> i think there's a change. do you think we can get help at the restaurants because they're meccas no we were better capitalized. >> we'll learn more about labor supply on friday we'll get the jobs number consensus around 178 the prior was 199. a big disappointment take a look at futures here. a busy week. it's not just earnings we'll have doe, ecp, and a lot

more futures mixed as the nasdaq tries to hold on to friday's momentum don't go away. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone. wondering what actually goes into your multivitamin? at new chapter, you can pick the best plan for each employee its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.

spotify responding to the controversy to the podcast hosted by joe rogan. saying it will add a content advisory directing listeners to its covid-19 information hub as you know by now, neil young and joni mitchell pulled their music from spotify accusing

rogan of spreading misinformation rogan apologized and promised to balance things out, jim. he said he'll try to do better by having a wider variety of opinions. >> i thought it was good i think people are getting concerned about what was the real policy they had because i think that he was one of the primary people who made it so this country didn't get as vaccinated as, you know, the 29 countries that are not as -- >> yeah. meanwhile today got upgrades over at citi and the general argument with spotify and netflix is the economics of the business the shares are not reflecting better economics maybe not sub numbers in absolute terms but better pricing and better margins. >> i think that this is the era of podcasting. you know, look, we know people know they used to read now they podcast. >> it used to be called radio.

>> yeah. >> long form radio. >> it's nice. >> yeah. it's good. i think spotify is a great company. >> we can remember when they made the push to podcasting. >> yeah. >> it was great! they made the decision and allocated a good amount of capital toward it. >> and they were laughed at initially when they did it or people felt they were not going down the right path. >> yeah. it was running out. >> yeah. well they may not have anticipated it would bring them into public view in this way but it doesn't seem to be having an impact. >> do you remember -- >> the stock has been suffering along with many others but you see it's -- >> yeah. what santo had the chemical problems that lowered evaluation. >> yeah. did you listen to monsanto by neil young >> no, i didn't, actually. >> neil young is very -- >> it's unclear how many artists will join him, at this point whether or not this has been enough to stem the comments from

that i didn't know it was semantics but anything else is fine. no that shouldn't be the debate jeez if that's the debate you would rather say, okay, listen, i would get sick than vaccinated that's what that means to them. >> right then it gets to the larger question misinformation on the large platforms and what responsibility the platform owner has to policing it. >> do you think zuckerberg said, you know, i'm going surfing. we got another guy on the hot seat we'll hear more from them this week we'll learn more about their meta verse strategy. >> there's a lot of companies that have metaverse strategies that we're beginning to realize could have, you know -- coarses ha a strategy.

>> coors >> yeah the beer company. >> what will they do >> it's a secret. >> oh, i bet it is i bet it'll do something with consuming meta beer. it could be the new topo chico set zer. >> oh, that could be remember when anheuser busch pulled away from the big game and they're all in the big game. i think that's because -- well, one of the reasons because people are watching this i'm still buzzing. i don't know this weekend's games were stressful and exciting you couldn't turn away. >> yeah. >> and the nfl has owners so happy. >> yeah. >> the australian open >> yeah. i think we feel good about watching something australian open was extraordinary. >> yeah. i didn't see him beat medvedev five sets. >> he's amazing. >> yeah.

22. >> yeah. >> 22. >> 21. >> i want to tell him it's okay. >> a tennis expert, actually. >> yeah. >> nadal no i didn't know that he's ocd, obviously. he has that thing he does. it works for him, no doubt congratulations. >> he's an exciting player. >> yeah. to the bengals and the rams. we'll get cramer's mad dash and countdown to the opening bell. don't go anywhere. and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪

all right. let's get to the first mad dash of the week. we count you down to the opening bell for this monday beyond meat. >> yeah.

i thought it was interesting after a series of endless downgrades, beyond meat, they take the other side. taking bite beyond the retail shelf. this is the constitutional side. this is what they talked could happen at the same time competition is getting tougher and they kind of just basically say that, you know, look out they're a risk to the thesis and yet i think what happened, david, this is i'm using this as a metaphor some of those stocks have fallen so much that people just don't want to stay negative. i think beyond meat, as we know, is one of the great growth stocks and impossible is against them impossible has gmos. i felt that younger people want veggie will go against gmo. >> well all right. so you say take a shot down 67%. >> yeah. that's what i say. one of the problems had been that the institutional, you know, the cafeterias hasn't done well mccormack said the business has

come back. the spice company. so, look, i'm not advocating this i'm saying i'm beginning to see whether it be netflix, whether it be beyond meat, a guy tesla today. they're saying, you know, growth has gotten too out of style. let's start thinking about it. it would be, by the way, for cathy woods. >> or wood. >> i did make fun of the short thing. it is a certain point when you set up a short fund, you can get really wrong. >> yes, you can. you could get -- do i think she caused a bottom in robin hood? yes. she tried to cause a bottom in draft kings than failed. these stocks have come down so much it's a profitable company. >> all right i can put zoom there instead and say the same thing as we take a look at it has it come down enough? >> well, that's -- >> what i'm saying is the problem with a lot of these recommendations like this is not

compelling there's nothing in here. >> other than saying the toing is down. >> that's what i'm saying. >> and i think you need tinder. >> that's not even as bad as beyond meat. >> close you need tinder. you need zoom. you need zoom to take the money it has and buy something. >> tinder? tinder what did tinder have to do with this >> tinder. >> well, you know, >> oh i see. not the dating app. >> oh, i forgot. is that the swap thing swipe left somebody downgraded that we'll go before things get bad here. >> people are looking for reasons to buy it. that's all i'm saying. >> all he's saying opening bell a few minutes away. by the way, if you want, you can catch us any time anywhere listen to and follow the "squawk on the street" opening bell podcast. 'rba aerhis.

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providers of streaming content are facing a challenge keeping subs who signed up for block buster releases. the journal today reporting data from subscription measurement firm antenna saying roughly half

of u.s. viewers who signed up within three days of the release of "hamilton" of disney plus and "wonder woman" on hbo max were gone within six months we've seen other antidotal reporting about voice assist you get an alexa and a couple of months later you no longer use it. >> i don't know how faddish it is maybe disney is saying it's not growing as fast but it's been spraet consistent. i think one of the things -- themes of the piece you have constant content constant content. >> i do. i wonder if we'll hear from some investors objecting to the stra i gi of focussing so much on direct to consumer and whether or not it'll be beneficial for the companies and going back and arguing that perhaps you're better off selling your content to the arms provider i'm waiting for for that argument to begin. it hasn't yet. >> but, also, january. i guess january didn't have good

movies i don't know in fairness adam tell tell you he was selling >> right we didn't mention lee hastings [ opening bell ] >> yeah. >> there's the opening bell. and solid rating the simplification of the company's share structure. and the chinese consulate general of new york lunar new year a lot of those who watch logistics it's an important time where you get a reprieve from the shifts going from shanghai to l.a. >> i had flex support the other day and oakland port has only seven, you know, they have almost no traffic.

and the idea that everyone keeps going to long beach and one of the long beach problems, by the way, and very powerful people don't remember how powerful it was and is and they're very powerful. they're not easily bought off, so to speak. one i think that in terms of watching the shell remember shell wanted to simplify they wanted to reduce their carbon footprint and, you know, they -- their footprint was bought by conoco it supports on the third age conoco is going to have a fantastic report. >> yeah. shell not the only one, by the way. unilever going into that single structure in the uk. beneficiary despite the fact with brexit there's a lot of people doubting whether or not the companies might want to do that. >> you know, unilever had a tough question they both are dutch. >> they think if you have two headquarters, you'll take out costs. >> yeah.

>> yeah. unilever had a tough quarter they didn't grow as fast as proctor. people people forgot it was a great quarter. almost like it didn't matter. >> did you do the chevron the downgrade over there >> to. and, look, i'm a huge fan of chevron. it's many any childhood trust. when i read it it stung. it said the costs are not that great. >> yeah. and what i didn't like about it is in the end you're selling a company that is doing a lot of what it to be able to become a cleaner enterprise and, you know, the guide said -- he goes this was painful however, we estimate that margins around this area of trying to get less carbon will likely be quite low the next couple of years. well, no the fact is, he's trying yes. the markets are low. one of the things he committed to was saying, listen, we're

spending $10 billion we won't make a lot of money on these but trying to do the right thing. are we getting to where some people are saying, you know, i want to -- oil a lot of esg because the margins aren't that good. >> they said they prefer -- >> i just felt, you know, i read it and wanted to call mike worth and say, mike, you know -- why you shouldn't do esg. >> there's a lot of cross currents for these the majors from their shareholders base the idea they become capital constrained as a result of it has not happened they were the beneficiary of not of their efforts of esg or lower that are carbon footprint but the underlying commodity has gone up so much they're generating enormous amounts of cash exxon and chevron i'm talking about. at some point, by the way, there will be a lot of luxury vehicles in the world

it's many years from now even with tesla selling over a million -- let's call it or 2 million. whatever the number may be next year or theyear after. at some point -- maybe 10 years from now there's not going to be as much demand for gasoline. >> transportation already, though, has passed diesel in europe. >> 0 so you need to come up with at least a long-term strategy. the idea you look at the markets and any other number of plastics >> yeah. jet fuel alternatives. >> yeah. >> i know. you called powell jerry. >> i never call him jerry. >> i know. i was kidding. that was a joke. i just saw this and said nobody said that mike worth's efforts to become less carbon intensive would make them -- i mean, i think it's amazing you see him trying to make money at it i'm saying it feels like an

insurance policy to not have what happened in exxon and my experience with mike worth that's not the case >>well, listen, we should be talking about it all the time. it's important. >> yeah. that's why i shared it chevron and exxon. there are people who question it longer term and what the strategy ultimately will be. can they truly hope to be -- you know, they had ambitions, by the way. the whole idea seems impossible for companies. >> yeah. they're trying they don't want to lose the shareholder base, which they were losing. >> they were losing. then again if you're a shareholder over the last year, you're very happy. >> true. i'm saying many of these companies, which we would have, at one point, regard as irresponsible that are doing the right thing and the truest piece made me feel don't do too much the right thing. it'll hurt your margins. >> no good deed. >> right speaking of decarbonzation credit swings upgrade at tesla

today. we're hard pressed to check the boxes like tesla does. carbon, growth, cash they keep 1025 to your point. >> right i thought it was well thought out. >> by the way, tesla above 885 or getting close to it it bounced off the 200. >> yeah. this was very important piece. because it really does talk about how you want to be an ev and still only tesla is ev i come back and read the fourth piece in the new yorker and come back and think about what jim farley is doing at ford. i keep thinking he has the f-150 and he can't make the electric 150 fast enough. they've been gaining problem is the battery. are there enough batteries and there are not. everything is gated. >> in the caterpillar quarter. they have to ship freight. >> caterpillar >> yes they decided not to -- they

decided to have the question mark to keep customers happy what happens the stock. they've decided it was the right thing to do. >> it probably is. longer term you want it. that's a good idea for business. >> your customers are happy. >> he's getting killed. >> all right 2.6% really >> yeah. okay >> remember when bennie half was lefting customers going easy on payments ended up being good in the long-term. unless you're a part of life sciences, you're just not getting any benefit. when people -- if eberle has supply chain problems, you would think it's okay. no every time it comes up, it's a new thing. they have supply chain problems? everybody does

kellogg downgraded today. >> i want to get to the lbl the morning sit rix, if i can. as you go through. >> i try to make it interesting. >> you do. it's one of largest we've seen in a long time not a particularly rewarding price for anybody who has gotten in the stock recently. reports of the talks between citrix and vista and elliot. two buyers the deal was announced this morning $104 a share there was some of hopes it would be far higher. it's not perhaps reflective of the current market for technology stocks, the multiples lower than might have been anticipated. it's interesting from a how it's being constructed. elliot, which is getting bigger and bigger as a player in private equity, even though evergreen is what they call their efforts there but the funds come out of the elliot

complex, so to speak they report one performance number but p.e. is obvious becoming an important part of the overall strategy it they did an enormous deal where they sold health care last year one of the biggest deals we've seen a big win for them on that deal. this one we'll see they're buying citrix along with vista. elliot contributing $2 million roughly is what i'm hearing in equity most of it is data, of course. as much as $17.5 million in total debt they're refinancing the total debt at citrix and tipcoe. i'll get to that in a minute and the debt financing for the purchase of the citrix shares. then you add in $2 billion in equity what is vista putting? a business they bought in 2014 tibco. that's what they're contributing i don't know the overall evaluation for the deal. they paid $4 billion for tibco in 2014. they're being valued at more

than that now. they're not putting in cash. they're putting in a unit that will create a very large company in the software area by the way, tipco i'm told, has increased its annual reoccurring revenue from what was 40% of the revenue to 90% recently. that's the player for itrix, a well and, jim, you know this well higher multiple will be awarded to companies that, obviously, have a higher percentage of their revenues as recurrent. >> recurrent. >> that's the hope here. they've had missteps and execution issues on their road to this. elliot was on the board. owned stock for some time and sold it and bought a bunch back. and finally move ahead with the transaction. but they're going to lever it about seven times ebitda is what i'm hearing. it's not bad but it's reflective, at least, of taking a certain amount of risk here. so seven years, you know, worth of ebitda is represented in

terms of the debt being taken on it's get the ebitda going up and have it more secure as a result of higher percentage of revenue be reoccurring for citrix. >> when the companies go, let's go back to tipco that base company. i was looking and i want to figure out. >> i don't know how much. >> yeah. we don't know where it's being valued for purposes of the transaction. >> we're seeing the companies come public. lifetime was a good company. they felt like they didn't get a good multiple. do we see this >> vista is not taking tipco public. >> yeah. i'm wondering. >> yeah. how closed is the private market is the equity market >> pretty closed right now pretty close that can change quickly, as you know. >> right now you're not thinking long and hard about taking a company public in this market.

if software is a service or anything like that a year ago you couldn't wait. >> and the company beauty health it was brent saunders. and they have a this was his deal they do the make -- >> yeah. >> people think the facial machine is real. no one thinks it's not real. but here is a company that sold at, you know, it sold at 30 and now it's at 12 it happened out of nowhere it just kind of disappeared. there's no sponsorship. >> still above $10 it's still a winner. >> well, in my list -- i did a list of spaks. that's what it may be. i'm going over the ones that are winners. i don't know want them to get hurt when we had gary gensler on, he

said a lot of these, you know, celebrity spak, in particular, he was quite critical. remember at the time lion tree was making the case any cash flow could be discounted through a spak it could be a celebrity or athlete. the model was sort of wider. >> yes yes. everybody had a spak and a dream. >> yeah. they have become nightmares. >> what were they thinking about -- >> they weren't? we had the deal wired from the beginning to end no matter what happens. >> yeah. and going to make money. >> we were in succession and the fact they mentioned at the end that lion share and those -- >> many of us know. >> yeah. you can't get better marketing it was a lot of fun to see it.

>> overall, guys, i'm struck, jim, the s&p leaders this morning netflix, tesla, align. all of these names that as you said, have come down on whether it's a short cover or not. >> i believe that people -- this is the backlash. cathie wood could have a bit of a run here my daughter used inviz line. it's a good company. joe hogan has been making it maybe january is the end of the growth stock armageddon. >> all right you're not willing to say it you're saying maybe? >> maybe that's why i like to see a catalyst that's why i brought beyond meat i don't know the catalyst.

i like a catalyst. >> other than the fed saying we're reversing course. >> a catalyst is someone buying $2,020 million -- [ laughter ] it's sokul. >> it is $20 million for him is not a lot, though. it's a lot for me. it's a lot for you. >> i have a shell over my head. >> you do. >> a channel shell. >> it's kind of cute you're perfect. >> i love perfectly situated. >> a roughly flat open on the monday we'll get to bob. >> good morning. happy monday let's hope the growth stock armageddon is done in january. remember the market leaders were sick kl in value stocks and a little bit of a problem today. caterpillar is down 5. dow inc. is down a few dollars visa is down, too. we'll look at the sectors.

energy is the big leader for the month. even though it's a small part of the s&p. it's a little weaker today banks have done okay all though banks have sold off essentially since their earnings season started flattish on the month. industrials have held up and tech is the big problem we're looking at so where are we now? if you look at what happened on friday, there's not a lot of people who have conviction that was the bottom the good news is, the valss are a lot lower. we were talking about 21 times forward now it's 19. we've seen record capital returns. we talked about on friday the dividends. record dividend payouts are happening now. record buy backs those are capital returns. cash on hand people like dividends now. lower expected returns the bad news is inflation and the extent of the rate hikes are unclear. that's a serious head wind to deal with now. as for the earnings situation, well, we have about a third reporting. we'll hit 50% around thursday. the average beats very normal. this is what it used to be back

in 2019. 5 or 6% earnings beat. we got used to 10, 11, 12, 15% it's not happening now i don't think it's necessarily a bad thing. we're getting little bit lower margins and the first quarter estimates are lower than they were at the start of the year. as for the sectors in january, you see the value. energy and banks being two great examples up 18% banks are flat going in maybe down a point or so now we've opened the final day. and consumer staples are in the middle and there's your other groups there. industrials and health care has got a big growth component largely because of the bio tech end of things. you see it suffering down 7% as for the tech sector in january. that's the real problem, of course everybody knows overall the s&p tech sector down 9%. bigger declines once you get outside the megacap teches that is holding up the technology s&p. so software, semiconductors, internet-related stocks. all down in the mid teens.

there's arc innovation down 27%. so overall let's call it an ugly january. it's not the worst one all though we have a few hours left for trading the s&p 500 down 7 now 7.1% for themonth. the worst january ever well that was 2009 we all live through that the s&p was down 8.6%. i think the only thing worse than january of 2009 if you recall, you were here, february of 2009. february of 2009 we dropped 11%. we had the worst january ever in 2009 and we had the worst february ever in 2009 february was down 11%. as i recall, and then we bottomed i believe it was march 9th, 2009 we bottomed. let's hope get a bottom in before what we had to live through in 2009. long and painful first quarter of 2009. carl, back to you. >> that takes me back. nasdaq needs just above 14k to

avoid the worst ever january performance on nasdaq. bob, thanks. >> okay. chicago pmi crossing a couple of months ago 65.2 for january we were looking for 62.3 we got ism numbers coming up tomorrow and thursday, as well as for the bond market, 10-year holding 108. two-year about 102 as we keep our eyes fixed on fixed income, as well. we'll be right back. my name is douglas.

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financials are the laggard as a sector as we get that curve continuing to fly. you see schwab as well, kellogg with a downgrade citrix notable among the s&p losers this morning. oprangit0.n 10 st tdi wh jim in a minute

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it's time for jim and "stop trading." >> people doing previews of facebook, snap, twitter. what was compelling from morgan stanley which talked about now meta industry, facebook, had incredibly good growth, well above 2019 obviously, tiktok doing quite

well the others, no snapchat may not be good pinterest not very good. i would keep track of this because, obviously, meta is not expensive scoring on earnings but this would be amazing if they continue to prove, especially because right now you know that mark zuckerberg is saying, joe rogan, you know? >> goes back to that big debate about what responsibility platforms have for mediating content. >> we had a story which said that congress won't care have we ever -- congress cares if there are headlines so if i were spotify, i would be worried. >> they want it both ways. they don't want to be treated as media companies and then they want to be valued. >> you can't have it both ways you will be pulled in by the u.s. government because there are a lot of people who don't like what happened 66% are vaccinated was he one of the reasons we didn't have more >> how about tonight >> okay. silver gate were the winner -- they fwobought -- remember libra

from facebook? well, they have a stake in it. old friend of mine, dennis frank, from goldman sachs is chairman they want to be the, let's say, the real go-to place for some of the troubled things that gary gensler is worried about in terms of the standards of crypto >> by the way, congrats on the crossword. >> oh, thank you. >> "the new york times" crossword today. >> that's nice "mad money." >> i couldn't figure it out. >> yeah. faber? >> no. >> yeah. wonder who that would be >> see you tonight, "mad money" at 6:00 p.m. eastern time. n'gowa bk.ightac dot ay. you want everything to be on autopilot. and to be prepared if anything changes. with ibm, you can do both. your business can bring data together across your clouds, from suppliers to shippers, to the factory floor. so whatever comes your way, the wheels keep moving.

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guilty pleasure breakfast sandwich starts your day on just the right note. on time, lowest price, or we'll make it right. (chicka-chicka) grubhub. ♪ good morning another hour of "squawk on the street." >> i'm carl quintanilla with morgan brennan and david faber coming to the end of january near, nasdaq is trying to avoid the worst january off that friday rally up almost 20 points. >> about to put another month in the books. we are 30 minutes into the

trading session. here are three big movers this morning. spotify, the audiostreaming service taking steps to address the controversy surrounding the joe rogan podcast which is accused of spreading covid misinformation by some artists we will have more on that story later this hour. you can see the shares up 9% right now. plus, robinhood rallying cathie wood's firm purchasing 2.4 m 2.4 million shares across several efts friday. and we will end with beyond meat getting a double upgrade at barclays analysts increasing the price target to $80 setting the fake meat maker's growth potential, especially in the u.s. you can see shares up almost 10%. >> thank you it has been a rough start for the markets for this new year at least. stocks though are coming off their first positive week of 2022 mike santoli is out with a new

column saying the recent volatility fits the profile of a proper correction process. and mr. santoli joins us now. >> yeah, david, it certainly does now, that's not to say you can say this correction process is over or even is ending, but if the job of a correction is under wind valuation excesses, reset expectations towards realism or pessimism and cull the herd of some stocks that got ahead of themselves, they have kind of doing that the s&p 500 is now down to about 19 times forward earnings. it was up at high as 22, 23. earnings estimates are holding up okay for this year. so mostly it has been about how much to pay for each dollar. the s&p small cap index is cheap thaern the s&p 500 than in to years. a lot of that has been punched 15 hup nasdaq stocks cut in hachl. we saw some of the most

skeptical fearful sentiment readings in years last week from retail investors and hedge funds have pulled in their horns as well all that stuff is helpful. but i do think you have to keep in mind that a correction that's done looks a whole lot like the opening phase of a bear market nonrecession bear markets happen i am focused on late 2015, early 2016 the first rate hike in a cycle, market ended up going down 15, 16% many of the economic details are different now. they are not the same. but we did have that very choppy market that lasted for a while and the 2015 highs were not fully cleared for more than year afterwards, guys. >> yeah, you know, mike, obviously, so many dstruggling t intercept whether we are at some sort of a bottom helping with your help there as well you look at analysts, morgan had beyond meat there, up 10%. not any fundamental revision but simply because the stock is down so much. i don't know how does that fit in with trying to figure out when we are

actually there >> that's kind of how it starts. you have people say it's down 50, 60, 70, 80%. even if it's just a reflex bounce, you get a little bit of upside seasonal factors should be helpful as opposed to a headstarting late last week into february and beyond. and i think all those things tactically fit together with an idea that if there is a moment when you could get a decent bounce, some of the beat-up stuff might be able to just have some of the pressure lifted off of it. >> mike santoli, thank you the s&p up 0.5% this morning the tech volatility, new street research analyst pierre, who recently upgraded apple to a neutral rating you had been saying before that, i am curious why the upgrade now and why specifically neutral >> yes so if you remember the iphone and the iphone 12 did so well

that it drive our market for the iphone 13. this idea you have fipeople in h world who buy iphone on the firsthand basis and if 250 million of them have the iphone 12, then there isn't that many left for the iphone 17 and what we -- so we were expecting something that happened already in the past in 2019, 2016, and what we saw in the last is like a very, very strong -- and a very very -- guide. that goes like really like head first against our thesis so the question given for the iphone today is something that is breaking our framework. that is something we are missing, right and so if that's the case, then we don't really have any views that is in opposition with what you will find in consensus today and what we think is reflected in the stock price

$165, you know, less 25 times what we would except for earnings next year and that's about what -- expecting next year, 60. and so we feel the stock is probably reasonably val sued so we don't have a strong view on the name and that's at the rachele behind our neutral rating. >> and what you are telling me is that you are acknowledging that you got it wrong in regards to apple's recent results. of course, the expectations for the current fiscal year. what would change your mind though i guess the fact that you are -- you are staying neutral right now. what are sort of the key factors you would expect to potentially accelerate the gains in this stock that you would be looking for that you don't think are there currently? >> yeah. that's a great question. i think if you look at, you know, like the existing established business, the iphone, ipad, the mac, the wearables as they exist today, we don't feel like that is

significant room for like upside against existing expectations. so growing in single-digit revenues and growth, free cash flow and positive -- along the same line, it's just difficult to have more than a neutral -- on this. we don't think that is not getting priced in yet. so neutral really we mean it we mean it but that's not an investment for which we would pound the table so what would make us change our mind with that kind of expectation and background in valuation and background with really the next steps for apple, which is like the vr or ar headset and the car, of course we have done a lot of work on this front our view today is that these are opportunities, our mix of being extremely open ended so there are very good reason to believe apple can do very well

there. but how well and how far is difficult to call. and then our second conviction is that this will be very slow baking of opportunities. so we don't seean urge in recommended investors to own apple for these opportunities today. >> speaking of cars, you like tesla. why? >> yes absolutely i think tesla is the exact -- in terms of iming, the exact opposite what we see today is that tesla is producing right now maybe on a run rate basis 1.3 million cars a year. and expectations for this year is for tesla to produce 1.4. so they are going to vastly exceed expectations. we have earnings expectations for this year and next 35 and 31% of growth expectations and the growth look for tesla is not going to weaken in the year from now compared to today on the contrary, in a year from

now the company has -- will be stronger we see competition coming in the market, of course, but it's like small companies who have like plans that are not going to overshadow tesla manufacturers are still struggling to make a car that can really compete with tesla. so the outlook will remain very strong and earnings expectations will increase by 30 to 35%. we expect the stock to do at least as well as that and that makes it great for us, yes. >> pierre, i don't know if you watched the football games over the weekend, but the marketing from the legacy oems about their evs, the mach e, all these names not on the market quite yet, will be hard to get for a while, does it require tesla to adjust their own marketing or can they continue to sit back and wait for the market to get larger and keep the same, say, market share of a larger market

>> yeah. i think it's a good -- i didn't watch the latest advertising company, but, yeah, i think it's a very good point. you are in the market and you don't spend money on advertising, that means you probably don't -- you have more than enough money to do it if you wanted to. the point means you don't feel the need for that. so tesla is sold out for six months spending money on marketing today would be a haeresay why would you do is that and others say they need to reposition their brands, convince drivers they can produce an electric car as well. it's tougher for them. i would see that situation evolving at least in the next couple of years. sol for the next couple of years tesla will still have this massive advantage of not even needing like a dollar spent on marketing because, if anything, it's too much. they just committed it they have to postpone projects

to try to do a better job at meeting the insane demand they are facing at the moment. >> pierre, thanks for joining us >> thank you. as we head to a quick break, here's a look at the roadmap the rest hour a closer look at spotify's latest controversy around joe rogan's podcast. >> plus, we will take you live to beijing, looking at china's goal to reach zero covid, of course, with the winter olympics kicking off later this week. and we will talk about the nfl tv ratings boom withdrew rosenhaus as l.a. and cincinnati advance to super bowl lvi. is the dow joins the s&p going positive the s&p 4460 don't go anywhere.

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controversy as popular podcaster joe rogan accused of spreading misinformation about covid, various artists like neil young, joni mitchell, guitarist for bruce springsteen's e street ban call for a boycott of spotify. spotify implementing changes to combat misinformation. simon gallagher, former netflix and hughley executive joining us i wonder, is this a reversal on spotify's part or a clarification of what they were already doing? >> i think it's a clarification. i think it's brought light to the issue. i think they are managing it very well.

i think responding over the weekend. i also think joe rogan coming out with a cleverly managed response over the weekend shows that they are thinking about the issue. but i also think it's important that you can't have single artists dictating to the service how the service should be run. >> i do wonder irk mean, young was one thing and then frampton tweeted something in support mitchell over the weekend. was there a sense that this number, this contingent of artists could have gotten much larger >> i thought that might be the case over the weekend. it's not -- we are now, i guess, eight years since taylor swift pulled her music off the service, rejoining in 2017 it is on the mind. musicians are known for wanting to be activists and to create discussion and change in the community. so i was surprised it didn't get more momentum over the weekend

but there is certainly a lot of people that are paying their bills because of spotify 31% of the audience subscription music services a lot of people are paying their bills and would need to think long and hard about whether or not they were going to join the fight, so to speak. >> yeah. spotify stock up sharply today in part maybe also, got an upgrade from citi. i'm curious what kind of grades you would give their efforts so far in podcasts and all the noise that's come along with it. >> yeah. look, i think they have done a very, very good. joe has an enormous global audience to secure him on an exclusive basis was absolutely a win, which is not dissimilar to what was achieved with howard stern by sirius a decade or so ago they have achieved someone with a huge voice in that community as i say, very competitive landscape. you are going against apple and google as we know, the biggest players in the world

so to be able to outmaneuver them, some of the tee talent, i think that kdeserves credit. >> who has the most leverage here i imagine it's spotify given the fact that streaming is such a big part of the revenue generation for musical artists right now. this is something neil young talked about last week to remove your music from a service such as that is to actually chip away at your own ability to make money. so i wonder how this playbook plays out and whether rather than say a facebook and misinformation debates we have seen there, whether netflix and some of the late -- the controversies around content there, for example, david chappelle in recent months, provides a playbook. >> yeah. again, just going back to what i said earlier, i think they managed the situation well and i think that it's brought up an important discussion and it's something that i think they need to manage going forward but it's something, as we've seen during

the past election cycle, all of media companies need to be mindful and aware of the messages that their key talent are propagating. it's something again that just needs to be managed and managed closely and diligently but i don't think it requires enormous knee-jerk reaction in terms of cancelling talent and pulling people off the service. >> finally, simon, separate from the controversy about misinformation, the street was already wrestling with spotify's podcast strategy, doubling down on it repeatedly the last couple of years where are you on it given sort of the absence of mega hits, but the ability of those hits to help finance all the other ones? >> again, it's a big decision to make if you're one of the top 100 podcasters, top 200, they move the needle it's a big decision to say i am going to reduce any audience to just 31% of the global audience and restrict myself in that way

when the opportunity exists to have a worldwide global audience and to be able to speak to those people so the check needs to be of such a significant side to take you exclusive that it's a very big decision to make joe decided, obviously, it was worthwhile there are only a number of people that will justify that size of check and others who will try to push their audience on to one service. so i don't think you will see too many more of those types of deals happening. i think the conversations will continue if you were to see spotify or apple get to sort of a 50% market share, then it might be easier to get those deals closed at 31%, i think the deals will be few and far between for the moment >> all right fascinating. simon, always good to check in with you it's quite a story the stock is, obviously, moving. thanks. >> thanks. shares of citrix systems this morning, the stock is

actually down perhaps a disappointment to some recent shareholders at least in that company after reports of course from a few weeks back that earliest and vista were talking to them about taking it private. this morning $104 a share is the price and again that may have been less than perhaps some had hoped for. perhaps reflective to a certain extent of current multiples for software companies in this market rather than what we saw even as little as a month ago. of course, it is still a decent premium to the $80 price the stock inhabited prior to the first reports of the talks i believe bloomberg is to credit there. as for the deal itself, it's one of the biggest in a long time in terms of a go private. $13 billion equity price 17.5 billion in total debt here. when you talk about citrix refinancing, also the refinancing of tibco as well, tibco becomes an important component of this. this is a business bought in 2014 for $4 billion by vista

it is being contributed to the overall here so instead of cash, vista is putting in tibco paid 4 billion for it eight years ago. unclear where it's being valued. but i am told it will give vista roughly 65% control or economics of the combined company. so above the 35% or so that you back into, elliott will be get from what i'm told is roughly $2 billion in equity a lot of debt. going to be levered at seven times ebitda from what i'm hearing. 65% ownership from vista interesting again. they couldn't find a buyer for tibco, didn't want to too take it public but are valuing it at a number i don't know, clearly above the 4 bull they paid, but 65% overall stake in the company. some disappointment for citrix

holders who hoped for a more robust price from these two private equity firms. >> as reflected with a red air own the board. thank you for your always insightful deal details. we are taking a look at the spdr aerospace and defense etf despite rising geopolitical tensions overseas, it's a little bit higher this morning. up almost 1% one name in focus though, l3 harris, quarterfinal results this morning, stocks trading down 3.5, almost 4% after narrowly meeting q4 estimates. this was thanks in part to supply chain issues and communications systems also softer full-year guidance according to some analysts one of the biggest s&p laggards, lhx. keep in mind, it has a big space portfolio. this is one of the many names i am keeping an eye on given my

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a rough january for stocks, as you know. the same could be said for crypto bitcoin down more than 15% in january alone. where do things go from here jim mccarthy joins us this morning to discuss jim, great to have you back. we just heard from a bunch of the legacy credit card companies. you used to work there i wonder if the price action lately has done anything to make them more hesitant about getting into that business >> no, not at all, carl. great to be here again yeah, actually, we saw over the course of 2021 just tremendous growth, far out exceeding tradi traditional credit and debit cards around the globe >> are you watching technical levels at this point i have seen charts that show got

to hold 28k, if it's above 45k things might be golden again are you thinking about that? >> actually, no. in the business we are in, and i think this is the interesting point, we process along with visa and mastercard the credit and debit cards around the globe. surprisingly enough, people aren't using this just to hold assets again what we are seeing is tremendous amount of spend if you look at the period january of 2021 to december 2021, we saw 500% growth in the number of cards issues and 600% growth in the number of transactions people are actually spending where visa and mastercard sits, the crypto wallets, people are using this as everyday spend we are seeing a lot of growth regardless of the volatility in the underlying assets. >> jim, when you do see something like bitcoin having over the last couple of months, does that have any kind of impact do you think, maybe even pressure on people to go out and

spend those assets even more quickly? >> yeah, we looked at that actually, so far we can't find a correlation. if you look at other periods, just of january of 2022, we have seen over the last week a tailing off in spend but we were seeing as high as $60 million a day in average spend on those wallets, on those cards associated with those wallets. so at least to date the numbers continue to grow people are spending those assets whether it's high or low we haven't seen a correlation yet. >> is defy something that is something more mainstream? if so, what does that look like given the fact that you do sort of sit on the front lines around this type of infrastructure? >> i think defi is theoretical at this point. where i sit, what he is really interesting is that people are using these assets, even though there is a lot of volatility in them, for everyday spend using

traditional rails. we study something like 3.5 million card holders where we actually see their demographic information and what we found was really interesting. they cut across all aspects of society over 45% of those cards were people that were over age 35 they are more -- sorry, less likely to -- seven times more likely they are more loyal. those products are sticky unlike traditional visa and master cards. so it's a very interesting group of people. what i will say that is more or less expected is the cards do act more or less like you would expect, which is currency for the internet we saw three times the number of cross border transactions using these cards and most of those transactions were e-commerce and two times the rate buying digital goods. so again the underlying assets, defi is more theoretical people are using this as a mainstream way they live their daily lives. >> the cross border part is going to be more and more

interesting, we hope, if the economy continues to reopen later on this year jim, we'll watch it with your help thanks so much. >> you're welcome. good to see you guys. time now for a news update rahel solomon has that for us. >> good morning. here's what's happening at this hour as the united nations security council meets this morning on ukraine, ukrainian military continues to train reuters reports that the u.s. and its allies have prepared a list of people in or near the kremlin's inner circle who will face sanctions if russia invades. uk prime minister johnson will be travel to go ukraine tomorrow. later today johnson will be addressing parliament. he is going to comment on the release today of what is called an update on an interim investigation into fwat rings of his staff during covid lockdowns. there was a, quote, serious failure to observe the standards expected of government employees, but she is also not making any comment on whether lockdown rules were violated pending a police investigation

canada's prime minister meantime tweeted this morning he has tested positive for covid. justin trudeau says he is feeling fine and is going to work remotely. he urged everyone to get vaccinated and boosted. and hundreds of passengers were stranded at new york's jfk airport overnight as jetblue canceled or delayed flights in the wake of this weekend's snowstorm in the northeast there were reports that many arriving passengers were stuck on planes for hours as they waited for gate to become available. you e tarupo date more "squawk on the street" will be right back. don't go anywhere. when traders tell us how to make thinkorswim® even better, we listen.

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the street." the suspect and dow trying to avoid their worst months since 2021 that's despite the fact the major averages are at least to start this morning trading higher and in the green. joining us meghan shu and ernesto ramos. welcome to you both. meghan, i'll start with you. the fact that we are seeing a bounce here in the last two days in what's been a very volatility start to the year, is it safe to say that the worse of the selling pressure is over are there certain marketers that you are watching closer amid all this volatility? >> yeah, thanks, morgan. we are watching a number of different factors. we think what contributed to the latest round of selling has been three main things. geopoliticals, specifically the conflict on the russia ukraine border disappointing or maybe less than

stellar earnings season so far, at least relative to the past few quarters pretty much in line with averages in terms of beats that we've seen from the s&p 500 so far and then the pretty dramatic adjustment in fed tightening i think market expectations have done a lot of the heavy lifting on refriesing for the fed. our expectation is that the fed will be hiking four times this year starting in march, and i think there is fairly balanced risk to that, especially if inflation comes down as dramatically as we expect between the end of this year i think it will be hard for the fed to be hiding more aggressively if inflation is coming down and it looks like they have that under control i don't know if the worst is over we added to equities last week when we saw the s&p 500 down about almost 10% we felt like the risk/reward was a little bit more favorable and we had some cash we have been waiting to deploy. so we saw it as a good opportunity. but i think volatility is probably likely to remain

elevated >> i want to get to the details of that in a moment. first, ernesto, your thoughts on this as well expectations for the fed and this rate hiking cycle sort of all over the map everything from four to now seven according to some strategists right now. of course, so much of this hinges on that inflation outlook. where do you fall? >> we are looking at what the consensus is to expecting it at about five cuts -- sorry, five hikes by the end of the year that's seems to be about right in fact, we think that's the reason the market is now up because initially when the fed turned hawkish the market of course reacted negatively, but now the perception is that the market will not necessarily be behind the curve and controlling inflation and, therefore, with five rate hikes they have a good chance of getting behind the -- ahead of the curve on inflation and tempering that inflation because one of the biggest risks

we see the fed cannot control inflation and that would be quite negative for stock markets. so in fact five hikes plus the balance sheet reduction we think will be enough to control inflation. i agree with meghan. inflation should come down after q q2 of next year. that's why the stock market is reacting positive, they see the fed dealing with the inflation issue. >> meghan, where are you putting money to work? >> yeah. as i mentioned, we raised a little bit of extraordinary cash in october and were waiting for volatility we have been holding a relative preference for international equities we saw this as an united states to u.s. large cap, small cap and lerched loans which we see as a better opportunity in a rising rate environment credit spreads and the environment we think is going to remain healthy

within u.s. large sap and small cap, we have had a preference for value. we are looking to tighten up our factor exposures a little bit and within growth we still like some areas of growth but we are really focused on those higher quality, higher earners. same thing in value. not going too deep, more looking at relative value and we think that there is some opportunities in still in the financials energy and materials sectors >> finally, earrnesto, watching for signs that commodity costs, ex-energy rolling over, lumber down last week at the same time, the slowdown in the employment cost index on friday got loot of people's attention. would you rather see relief on the commodities side or the wage side of inflation? >> i think they have to go hand in hand. you will start to see all inflation measures trend down. not necessarily just now, even though commodities might be the first, the canary in the coal mine, so to speak.

the bottom line for us is the fact that this, the fact that money is longer free it makes people open some fundamentals and how much to pay for those fundamentals when money is free, it doesn't matter the fundamentals can be whatever they are the rising tide of money will lift all boats now active management, in other words, paying attention to the fundamentals and how much you pay for those, has a chance to start working again for quite a few years. it's been challenging to deal with the tide of free money taking old assets higher now we see an opportunity for stock picking to start to become relevant again and that's what's exciting us because we see the opportunity mhere to buy qualit. i agree with meghan on that. relative value is also one of our themes because high growth tech stocks are fantastic companies, but some of them are trading at very high multiples and with the rise in interest rates, those forward earnings are getting discounted at a

bigger rate and they don't present such a great opportunity anymore compared to the higher quality, more stable operating growth type companies. >> thank you >> thank you big show coming up on te"te check" today t we will break down the global chip key demand. stock is off to a rough start. back of the 200 day moving average. that's at the top t hr. n'gonyere.heou

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the street." i'm dominic. stocks are mostly higher to start the week with notable outperforms. mainly, consumer descriptionary. we are floating near session highs right now. mopping the leaders in that seconder are some of the most roog recent laggards, tesla, upgraded by the way today to an

outperform rating at credit suisse etsy is higher, tracking for the worst month since march of 2020. 30%. and chip let lay, gm motors, vf corporation, higher this morning. on pace for double-digit monthly declines so a bit of a bounce today we will see if it's fundamental and if it lasts. david, back to you at the stock exchange. >> watching that nasdaq comp in particular up 1.75% after the break we will talk with nfl super agent drew rosen gus, following a wild weekend ofreat football. we are back in two men's i think you're going to like it here. umm, why is everyone...

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drew rosenhaus just the ratings alone, not to mention the incredible games that we saw throughout the playoffs, other than that first round, what does that do for the value of the league? you, obviously, an agent dealing with the owners. this thing just keeps going up, up, and up, doesn't it >> i think it's at an all-time high these are the best games i have seen in 50 years i have been watching the nfl the ratings are unbelievable a bounceback from last year when the nfl took a hit without fans, with covid it's just super exciting to see great games. the fans back. the nfl ratings skew high. the nfl couldn't be in a better place. >> what would you rather be an nfl owner or nfl player at this point? >> definitely an nfl owner i mean, those guys are billionaires, you know, every franchise is worth at least $1 billion at this point. and more and the best nfl players,

unfortunately, cannot compete -- unless you are tom brady and we are going to be talking about him, obviously hard to compete with the nfl owners >> drew, loot of discussion about overtime, obviously, not just the rules, but just using it as a way to explain how deep and advanced these offenses and defenses and coaching staffs have become. it's extremely hard to get an edge on another good team. >> yeah. i mean, what we have seen in the playoffs is virtually every game has come down to the last play and overtime is basically deciding most of them, and that's because you're right. the nfl teams are so good at the top, the coaching is so excellent. and the line between the teams is so fine right now, that it literally comes down to who has the ball last. they are the winning team. it's great it's exciting. it goes to show you how important a great quarterback is

in the nfl today it's no coincidence that the best teams, the teams that made to the final four, had outstanding quarterbacks and a great offensive head coach. >> yeah, i want to dig into that a little bit more, drew. is tom brady going to retire and i guess just as importantly, is this an end of th start of a new one in terms of, i guess a generational shift at quarterback given some of the other retirements we're seeing, too? >> you know, i haven't talked to tom brady about his retirement, but everybody that i talk to seems to feel that the retirement is imminent and i know that his camp pulled back on all of the reports probably because the timing wasn't great going into the playoffs and probably didn't want to upstage that, but my guess is it was too prevalent. the reports about him retiring i have to believe it's going to happen i would guess that he'll announce it in the next couple of days. probably to give tampa some time

to try and get another quarterback, which is not going to be an easy task you can't replace tom brady, but sad to see him go. 22 incredible years. greatest player to ever play in the nfl, we've all been so lucky to watch his greatness he'll be missed. that's for sure. >> yeah. you know, you mentioned coaching, of course. it is the time of year when a lot of the teams that aren't so lucky to have been in the playoffs are looking for new coaches. some already have been announced. drew, do you think the league has done enough to promote minority representation at that level? when you look on the sideline and look at the coaches, it doesn't seem necessarily reflective of the league as a whole. >> reporter: i agree with that no, i don't think enough has been done. right now i believe there's one black head coach and that's mike tomlin 70% of the league is made up of black players. it's ridiculous if there's only one black head coach and we had a couple that were

fired in this cycle, unfairly in my opinion, brian flores and david cully. i think the league has got to do more to promote it and you know, they're creating incentives with draft picks and things of that nature. but, until we have a fair representation when it comes to black coaches and black general managers in the nfl, there's going to be a very unfair disparity. >> yeah. drew, it's an interesting issue. one we'll be following of course, as well as the leadup to the super bowl always appreciate you taking time with us thank you. >> absolutely, guys. enjoyed it see you next time. >> yep hopefully before the big game ask him what he thinks about what's going to happen in l.a. biggest s&p gainers for the month of january no surprise to see it almost entirely revolve around the energy complex we're back to 4465 back in monta me -man stitchwork master. but your staffing plan needs to go up a size. you need to hire.

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welcome back to "squawk on the street." china has a zero tolerance policy your eunice yoon has that story for us. >> reporter: for lunar new year, this video has gone viral with

rare criticism of chinese authorities. a grandfather vents frustration over a last-minute decision to tighten controls for his city, forcing his grandchildren who just showed up at the train station for the holidays to turn back just as most of the world is weary living with covid, chinese is worried of living with beijing's policy of zero covid lines of covid tests mandated by local authorities now the norm. >> first, we have to stand in this line to register. then we're going to go to another window to pick up the kit before heading to a third window for the test. the whole process will take us about 1.5 hours today. not only testing, but constant track is taxing, too most places even cabs require you register your id and contact info through a health code on your mobile phone to get in. drugstores share your personal purchases of any medication for fever, cough, soar throat or infection with the authorities if you buy those meds, you receive this government alert so

your health code won't work until you go for another covid test sudden lockdowns of buildings and late night visits by authorities rounding up residents for covid tests are becoming common, too staff are being instructed by local authorities to knock on people's doors or put up notices to make sure people get tested this household has already been told to get tested twice in three days online, people complain about children who test positive being taken to covid hospitals without their parents. chinese authorities argue that these tougher measures are necessary for a country with 1.4 billion people leadership does appear to show signs they're concerned about the grumbling. the top health authority set up a public messaging board so people could complain about their local officials who they say have been blocking them from going home for the lunar new

year holiday david? >> eunice, thank you eunice yoon in beijing. also news now out of boeing, phil lebeau has that for us. let's get over to him. phil >> david, boeing dropping 10k this morning and essentially formalizing what ceo dave calhoun had said during the analyst call last week, remember, the company still has not figured out exactly when it's going to resume deliveries of the 787 dreamliner. because of that dave calhoun said last week weexpect negative operating cash flow in the first quarter. in the 10k today, boeing formalizing that, saying we expect negative operating cash flows in future quarters until deliveries begin to return to historical levels. we may need to obtain additional financing in order to fund or operations and obligations stock not really moving on this. again, this is formalizing what dave calhoun said during the conference call last week, but the fact that they say quarters there makes you wonder if they believe that they may have negative operating cash flow

beyond the first quarter again, guys, so much is tied into when do they resume deliveries of the 787 dreamliner guys, back to you? >> that's the key question meantime, stock is trading higher, phil we had these headlines and reports over the weekend that boeing is preparing to launch the triple 7 x freighter, new first jet model in five years. multiplane commitment from qatar. is that why we're seeing the stock trade higher >> somewhat, yeah. that's encouraging news. look, the cargo market, the freighter market, morgan, has just been on fire over the last year, year and a half. and boeing has had an increase in freighter orders. and the fact that they're saying, look, we're stepping up now with the triple 7 freighter is an indication that they believe that there is substantial growth within that market but let's be clear here, the overall market for boeing is the commercial market. that's going to be the focus and that's why this 10k is so

important, david >> yeah. the prospect of them having to raise even more money is also interesting. phil, thank you. phil lebeau on boeing. as we wrap up here on "squawk on the street," of course, we have the s&p a .7%, but it is the nasdaq and particularly many of those hard-hit growth stocks with high multiples that are staging quite a rebound this morning that will do it for us on "squawk on the street. "techcheck" starts now ♪ good monday morning. welcome to "techcheck" i'm carl quintanilla with jon fortt and deirdre bosa today, stocks rally to close out the month of january the nasdaq higher by nearly 2%, trying to avoid the worst january ever coming as we await quarterly results from alphabet, amazon, metta, snap amd and others this