today. >> thanks for having me. take a very quick final check. you might want to notice the 10-year yielding 3.67% equities markets are flat. treasury complex oday. we will see you back here tomorrow morning "squawk on the street" begins right now. we'll see you. good tuesday morning and welcome to "squawk on the street." i'm david faber. he's jim cramer. we are live from the new york stock exchange carl has the morning off we begin trading 30 minutes from now. set up for a slightly lower open after yesterday's down draft our road map starts with news we just got about wells fargo it is settling with the cfpd for

$3.7 billion as a result of consumer abuses. recession worries are continuing to drag on wall street the nasdaq leading declines. that is leading my colleague next to me if it marks the return of the quite mighty down. disney doldrums. the worst year since 1974. we have a lot of other stuff on this show too. don't go anywhere. cfpb has ordered $3.7 billion for widespread mismanagement of auto loans, phrts, deposit accounts that is $2 billion to address consumers. and there is, jim, a $1.7 billion civil penalty. we have been following this for quite some time, of course they thought they had gotten it all behind them. it feels like there's always a little bit more to come.

is this it >> that's just an absolutely great question you know, when the wells press release -- what they're trying to do is say that it's $1.7 billion that is new. that's a civil penalty and there's been 2 billion that's been in the works, so to speak. meaning you're not going to say 3 polyp 7 is brand-new this is very much in flux story, meaning i'm frantically working on and i don't want to be -- in law school we learned -- the cfpb makes it look like they are writing a check for 3.7. >> there the consumer protection bureau is doing its job. i would assume this is the largest penalty by far >> oh, you got that right, baby. this is the wells news release cfpb is terminating 2016 consent order. that's been a huge problem for

wells. providing clarity and a path forward for termination of the 2018 consent order, recognizing recent acceleration of efforts this is a battle of the forms. that is wells' talk. and the civil penalty of $1.7 billion. and the 2 billion has been in the works. i'm frantically trying to figure out how much of the 2 billion is already in the works how much have they paid? the stock is down. the ceo is paying a fine of just gigantic proportions $1.7 billion is not nothing. but to get them behind them would be something i think you have to understand there were 13 different issues that charlie had to solve. people thought he had to solve nothing when he took the job it turned out there was just a fiasco of tremendous proportions going on there so $1.7 billion. do they have the money to do it? absolutely

they haven't bought back any stock since the spring i was furious for buying stock high this explains a lot of what they had to do. but to get this -- >> right >> which is sitting here trying the get these darn things. i'm going with the 2 billion for remediation. >> yeah. >> it's already ongoing. of which we don't know -- >> has been accounted for. >> 1.7 is new. >> we'll update as the show moves on listen, this stock has not performed any worse than the group. better than other names. bank of america, citi, jpm all down >> wells had a better quarter. they're making more money on the margin a lot of people who feel, well, they've got substantial -- if the fed pushes and we go into recession, they have substantial liability.

they have the cleanest balance sheet they have ever had even though auto loan hit is over but it's stunning. okay charlie's quote -- >> charlie scharf, ceo >> run the company in a more disciplined way. what that says to me, it gets worse here we have made significant progress the last three years and are a different company today. it says significant progress i don't want to see significant. i want to see we're done and i'm not getting that but this is the big one. this is like one of those things where i don't want to come back three months from now and say this is the big one. it is huge but it was not charlie scharf.

people are going to say wow. people will say, wow, they're almost done. >> all right i know you're reading that >> i've got to get on this thing. >> i want to move on to more of the market if we can >> and i want to explain the way we work. it's in progress >> yeah. >> i think our viewers know that that's why sometimes you give me a hard time. >> when it's reversed in your reporting, it's okay i won't get upset with you >> that was totally gratuitous >> i feel baddley. >> no, no. i don't want to say it's done. >> i need you to focus on this the nasdaq is approaching a 33% decline. that's for this year 32.59 is where we started the

day. amazon, stock has given up all its pandemic gains followed by 50%. >> we sold amazon a lot higher >> we being. >> the trust we bought some yesterday we bought a small amount trying to rebuild and i'll tell you why. >> tell me >> i think annie chassis recognizes -- the ceo -- that they have a terrible ratio of expensive revenue. and i think else the most likely to take the heit but there was an extraordinary piece today by michael nathan son saying that even though meta has taken gigantic charges, they're not done so these companies remind me, david, the old days when you have chemical companies, this

is -- the stocks have just posted ground zero of everything that's wrong with this market we're not talking about cummins engine, general mills, campbell's, general mills. we're talking everybody who was making a fortune in the valley thinking we are the kings. you know what, david, we are the pawns. should be the queen. king can't do jack >> that should be the case but anyway tech tumbling it's been a major source of funds for everything >> yes, it has >> but at a certain point, do you think jassy is watching. he doesn't miss the show the problem he has is he

inherited big and added big. because that was right they are dealing with a covid group of people. now, we did not have that yesterday from gel nick. gel nick never did that. >> you lost me dealing with a covid group of people >> andy jassy added workers. >> hundreds of thousands it was a heufrg spree the likes of which we have never really seen >> i'm looking at a piece from two days ago reducing estimates and price targets. it is still a buffet buy >> give me a break buffet i read that to my staff and they

mean buffet like a circus circus it's fabulous. amazon is in trouble now they are not in trouble financially. >> revenues to expenses. >> they all are. that's right >> they are eating oysters >> and productivity, by the way, is down at many of these companies. people aren't really working on fridays. >> they're not working on fridays. >> they're not working on fridays. >> i have a study that shows they're playing call of duty on friday >> you have a survey >> yeah. i actually do. >> you do? i would like to see that no, you're right so is 2023 going to be the year where cost discipline is -- >> the ceo of meta zuckerberg is the ceo of meta

has said one thing over and over again, which is it's time to get the revenues and the expenses matched correctly. >> a cap ex budget -- >> he's spending 80/20 13 billion for the metaverse the lab. >> 30 billion is the overall number >> i wish it was like a crime lab on cbs look, they have to have -- they spent a lot of money on ai >> yeah. just stuff like servers too. that stuff is not cheap. >> i am saying they are conscious of what we are saying. >> i don't know where all this leaves me. >> these are viewers who want to follow it is you're telling them is this creating an opportunity.

>> there isn't any advertise netflix will thrive. have you seen yelp advertising is everybody's cut >> netflix has a less than robust to its ad-supported year. warner brothers got crushed yesterday. maybe just lumped in as well on the worries of advertising >> look, let's back up the companies that were doing really well in the pandemic turned out to be those guys. we make fun of peloton and my wife's bra, and docusign we say we're not going to use that anymore we're going to buy real estate zoom is doing better than some of these companies >> okay. >> these companies were at the heart of advertising they turned out to be ad-supported companies >> well, some. >> yeah. except for animal. they will preannounce the first day when they come back.

that's what it says. i'm just saying this turned out to be the wrong group. amazon down 50%. we started buying back i don't think jassy, who is one of the most competitive people i have ever met, is going to sit here and take this he is going to do whatever is necessary. >> i get it. >> despite any means necessary >> i'm not sure if you read the bio. but it's by any means necessary for andy. >> when we come back, we will have a look at the state of consumer, nike another look at futures. we're 17 minutes away from open. we will have a slightly down open stay with us

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>> are we going into a worldwide recession? >> i think so. these numbers don't portend very well >> that was fedex ceo. that was mid-september he joined jim on the "mad money" set. he's joined in that by many other ceos at this point the warning sent shares down

sharply. it hasn't fully reconsuped whatt lost quarterly results for nike >> that's a question of how much china is open. but also u.s. consumer but china is integral to their growth they did have a great u.s. quarter last time. >> nike did, yes a much more important distribution channel for them. >> fedex is very interesting there was a note urging people to distinguish it from u.p.s fedex spent a considerable amount of money overseas the knock on fedex, they spend a lot more money you have explained it many

times. >> without a doubt people say it is an air force packaged as an delivery company. >> after those comments which had a broader market response, then we suddenly reassessed and said, wait a minute, this may not be a broad issue it may be a fedex issue. particularly after we got numbers that did not show the same level of weakness there is an activist investor, d.e. shaw. a couple of people on the board. so there's some pressure there >> everybody wants to run to the general mills of the world >> which reported numbers. >> general mills is down today in part because all of these have run so much that you have a situation where unless they continue to raise and raise and

raise, they get hurt which goes back to the dave tepper theory. he says listen they're going to keep raising i'm not going to say nowhere to hide but there is a lesson here which is your portfolio is getting hurt except for in the heinzs and general mills. i don't know if this general mills decline portends this isn't the place to hide or is just a pause >> coming back to the broader consumer, we had a conversation yesterday with the ceo of costco and i think both of us didn't come away from that feeling better >> no. >> probably not one of the

better christmases i've ever dealt with that has a lot to do with the consumer being a little bit careful going into next year i think right now, you know, unemployment is still in a relatively good place. but every time you turn around, particularly in the technology jobs, people seem to be getting laid off and i think people are saying wait and see and let's see what happens going into next year >> i mean, let's wait and see what happens going into next year it could be something ceos across the board are also saying >> is there another 2018 where the fed is being too tight i don't think he is turning back this time. david, if we parse jelinek, we have to say i have never seen him saying anything other than pretty good christmas. he did not say that. i've actually been where they have senegal opened the store. >> pre-ceo

>> the technology layoffs are significant. the first person to ever agree with me is jelinek costco is a big company. 550 stores in america. everywhere they see where the numbers are the numbers on the west coast are not good because of technology they are selling a lot of tvs but not the big ones is another good tell of what's going on >> yeah. >> it's not that the consumer is dead the consumer is more cautious. then the question is why did they run out of money? >> no. >> did they -- >> services is still hanging in there in a way perhaps goods is not. we have a lot of questions we don't have many answers >> no. we are frantically trying to get

them >> i never give anybody an answer just more questions. >> that's because you have a jeffrey attitude >> coming up, jim will give an answer as to what today's mad dash is. we will count you down to the opening bell one more look at futures because we know you want it. yeah resqwkkee' dn.li wreow mo "ua on the street" after this wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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you see shares of wells fargo off the lows we have an open six months from news this is the cfpb ordering the company to pay $3.7 billion for

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jim is doing the reporting while i'm sitting here just talking. yeah look at that but it's a pleasure actually to speak uninterrupted. let's talk a bit about the bank of japan decision. because that is having an impact, as you see, on the broad treasury complex right now saying, hey, you know what, we are going to -- we are no longer the last holdout on regular rates. sign they may be buckling and heightened expectations that in fact, they will allow beyond yields to go higher. that's enough to get risk managers a little bit concerned. you've been working on the wells fargo story.

i don't know if you have anything to add on japan and that impact. >> well, japan, the market was doing fine before japan reversal almost all view this as negative right now. i think we're in a situation where -- i know dave doesn't want me to put words in his mouth. it's the anti-of what used to happen you raise, it's bad. you don't raise, it's bad. >> what's bad is bad bank of japan in a surprise move widening its yield curve on 10-year government bonds so essentially saying they can go up in yield >> the wells story is a little more convoluted. >> okay. i want to stop you there we will get an opening bell. let's get in the opening bell. then let's come back to wells. and we have a bunch of other

stocks we want to talk about i want to hear what reporting found on wells that was the lead of our morning. here at the big board, i should mention, and take a look at the realtime exchange, amplified ets celebrating -- supported by best buy. there is a seemingly surprising $3.7 billion settlement, fine and various things you have been working the numbers. what was new, what was already included >> the 1.7 is the civil penalty.

i don't want to put words in the consumer banks -- the protectors of our country but there is another, let's call it, 350 million that is new. >> 350 million that is new >> so 2.05 is civil penalties. new meaning it hasn't been reserved, hasn't been saved. wasn't in the works. now the real number here is 5.5. 5.5 is the number that -- i know very big numbers that is the total they think puts everything behind them. charlie scharf is trying to put this all behind him.

you can see they did have a reserve in the previous quarter. now we are seeing what that reserve was for, which is litigation 1.7 billion penalty is new the additional 350 multiple that is not yet remediated. so now you are talking about new money. 2.05 billion they have to write a check for. the rest is in the works it's a little more difficult and the reason i come out with 5.5, the bank is basically saying, look, we have these other charges. we have this litigation and there it is, all right >> yeah. >> and it's not just for this civil protection bureau. where do i come out on this. >> where do you come out on

this >> i think any move greater than, say, 1.5% overdoes everything that we've heard. the bank has had a horrible overhead and i think what you really want to think of, an executive told me about a division that he had to sell. it was 20% of the revenues of the company but 35% of his time. very fine executive. no need to call him out. i think that's charlie scharf's problem here this is probably 50% of his time that's my own estimation and 50% running -- like zuckerberg, how much is he running metaverse versus the refuse of the place, 20/80, 80/20. charlie scharf is a very fine banker bank of new york, a little more difficult to figure out what he did. but this is the beginning of the new wells fargo. it's just an astounding set of numbers.

>> yes >> what it reminds you, david, charlie has been there for a while. yeah >> there were many, many things wrong at wells that we didn't even know about. >> that's true >> had auto loans. ripping off the consumers. >> it has taken quite a while to get deep enough to get to the bottom >> it includes all the lawyers and everything >> yeah. then maybe the conversation will be how the bank is doing going forward. and i know the bank has plenty of capital i know the company can buy back stock. so 5.5 will be the number people should be talking about. 1.7 is the number you should be talking about. 3.7 is not the number they should be talking about. >> i'm glad we got that done >> nike, too, is going to be my stock. >> i wanted to talk about a few things >> sorry i wanted to do the mad dash. >> we have no mad dash you were reporting during the mad dash >> i'm trying.

>> i have been reporting on tesla and twitter, as you might imagine, along with everybody else we had the poll from elon musk 57% saying, yeah, we want you to step down as ceo jim, no big surprise here. musk is actively looking for a new ceo of twitter and it doesn't take a genius to tell you that. as we have seen from his previous polls, oftentimes he sort of already knows the answer before he actually asks people to participate in said poll. from everything i have heard, he has been active live looking, asking, trying to figure out who the candidate pool might be. heard a lot of different names none of them enough so i feel comfortable sharing them at this point. and i'm sure -- >> i can tell you, he is not going to do john ledger. >> no. i think that's fair to say it's not going to be jack

dorsey you can joke about a long list of people it's not going to be, jim. i think it's interesting because he has told people he even said as much during his testimony in delaware. it's a four-month project. that's what he sees it as. and he is going to find somebody to replace him he will still be the boss in a sense given he owns the company. to the extent it takes pressure off tesla, who knows but he's out actively looking for his replacement so to speak. >> all right what would be the classic hilarious replacement? brett tell of salesforce >> bring in the former chairman. >> who beat musk i don't think he wants to do that, brett. >> no. do you want someone who is a salesperson? >> it's a great question it's a great question. what do you need more? >> i think you need tech

>> many things to navigate as the ceo of twitter and obviously in a very difficult ad environment where you are dealing with half the staff you had which, by the way, may be good. there seemed to be a lot of bloat at that company. >> yes >> we talked about not working on fridays it's not clear what days they were working there i'm sure they were >> incapable of doing a lot of skpaeupbs and a lot of things people thought they did, integrating stocks >> the latest research was evercore lowering tesla from 300 to 200 they fear u.s. brand damage given ev demographics. 40% from california. 70% from blue states in a dwindling backlog environment. then they go on from there, jim. there's no doubt it's been having an impact

>> let me get that let me see how much it is. >> what numbers. >> the impact. >> i have my sources on the ev versus who is taking a share i'm trying to get it before the show is over >> i want to move on to disney want to do that? >> ready to do that, partner little emoji that's crying >> i like when you call me partner. it makes me feel nice. we have wells fargo partner this morning. they are saying squarely we think you should think of spinning off espn. the cash cow neither owned ip nor global the way the rest of disney is with linear trends diverging from core ip, we think rec severing the company is logical.

bob paycheck one of the list of the things. chay peck saw an opportunity in sports betting and how espn could be tral to that. >> but he failed to do -- >> i do not have a sense where iger is on this. wells goes into some detail here in terms of they think espn, abc with linear networks is 2.5 billion in operating income before from depreciation and amortization if they can pull it off, they need to trade 16 times over be bit da that would be value neutral. anything over that would be value enhancing. they could send a lot of debt with espn >> right they could >> help their balance sheet a lot. >> last night i watched espn, football you realize they have not fully

used their library i think they themselves have reduced costs at a phenomenal rate since bob rand last time. i like the idea. i like to hear what steve schwartz hurst has to say. >> owns 20% of espn. i'm so glad you mentioned that has certain rights as a result of that. it doesn't mean in any way iger is thinking about seriously. just don't know. by the way, if they are, they'll also be some potential buyers. you may not want to just spin that thing cold. you may want to do something else >> look, apple was dropped out there's too many people. >> the football package, yes >> and i think both amazon understanding somewhat gambling. neither seems to understand that

the fourth quarter in nfl is watched. >> right >> because of dfs, daily fantasy and regular fantasy. 55 million people play fantasy none of these people seem to have a clue, with the exception of espn, how to profit off that. >> right >> dave, what i need to know is contrast as they come up, unless you're alphabet or amazon, you don't have the money >> that's key question that's so important. obviously, it's one of the key reasons it's so expensive itself and why the bundle is taken apart while holding it together for sport. >> i don't want to be too anecdotal. but you have a play where the pats lose. incredible play. you have a comeback on saturday. the colts, the greatest comeback ever the colts lose to the vikings. these are things that people watch. no one talks about the regular darn programming that they shove down our throats during the

commercials when you're watching this stuff because we don't really want it. then we discover it and do like it the only way we can discover it it is from sports. i'm he checking in on this abc or nbc show. >> i hear you. then we watch them and we kind of like them >> i want to move on from disney, jim. >> let me share the news with people i may not be having that big an impact on the stock. >> did you mention forever >> all pfas pfrg by end of 2025. all floor nated fluids, pfas based products and help facilitate orderly move for customers during this transition

period of a couple of years. almost more than that really end of 2025. three years from now as our viewers may be aware, of course they are facing numerous lawsuits about the environmental impact of pfas manufacturing current annual sales 1.3 billion ebitda so 16% they expect total pre-tax charges of 1.3 billion to 2.3 billion. and that will be also part of the fourth quarter as well i don't know your view on this? you and i have occasionally talked about this. >> had i'm surprised >> we see something in court that rises to a certain level. >> this is forever chemical production a key chemical to them it has caused groundwater contamination. it's all over the globe.

micro man, like charlie scharf, trying very much to put this litigation behind him. this will be more difficult. 3m has been viewed as a punching bag slash piggy bank >> right >> i think the discontinuation of pfas was incredibly important. but i did not know how important pfas was to their actual sales >> yeah. >> again, another one where we're glad they put it behind them but the cost of putting it behind them is high. and pfas is not really the end of the litigation, this putting it behind them pfas continues this groundwater is something that we know is forever. >> yes >> and so i think mike is doing a good job can i just say one thing >> please. >> micro man >> micro man, ceo of 3m. >> did not create this problem >> no. >> you go back and read the

first quarterly cue of mike, it was the beginning of what he realized could be -- >> and they have done a number of different things. >> it's global and i think it's really important. and a lot of it is the kind of what they -- what they used -- the chemical used in scrubbing >> correct >> what i feel baddley about is this is a dow -- >> this coating is on a lot of stuff, pfas. >> the coating is everywhere >> before we go -- >> where are we going? >> lucid did you notice this. >> oh, yeah. >> they raised $1.5 billion. >> great >> 56.2 million shares of common stock. the gross proceeds were 600 million. and then privateplacement 85.7 million shares that affiliated with public investment fund. then they will make it >> then they will make it, yes

1.5 billion will be very helpful to them. you consume a lot of capital when you're ramping up profit on your automobiles >> amgen, there was a tremendous amount of moneyon the next amgen. and there wasn't >> it's hard to recreate a tesla. >> it is i wish he would just go back there. >> down 58.6% shares of tesla. 460 billion market value didn't move higher at all in that reporting because most people are aware that musk is actively looking for a ceo >> can i ask you whether the names are entertainment or technology >> more technology >> good. because that's where they're hurting. >> i heard one entertainment name, but it wasn't going to happen >> all right chip tells us, our producer, that we have to move on. so we will listen to him and get to bob pasani.

>> we are in serious downtrend down 5% the last few days on the s&p. just wanted to show you sectors. ark is in another serious downtrend going on semis are weak again we are waiting for micron tomorrow banks and retailers just awful december i want to show you some of the names. nordstrom, costco, dillard's they are all down 15%, 20% this month. you can see flattish today this is a little bit unusual generally a terrible month for the retailers. banks, the same thing. i notice big regional banks never recovered from that goldman sachs conference a few days ago m&t and other ones down 10% to 15% in the month of december a lot of big stuff in serious downtrends we hope we will get a reversal the early reporters we had last

week were not that bad but the numbers are coming down. so fourth quarter estimates went negative for the s&p 500 now down 1%. october 1st, just to give you a sense, it was up 6%. we don't care about the absolute number it's the trend, the delta. and the delta is going down. we are reducing numbers rather steadily the same for the first quarter too. that will go negative the next couple of weeks. we had first quarter 2023 up 7%. now it's up 1.9% that will go negative in the next couple of weeks that's what the trend is maybe we will get the big three reporting that will change things i don't think so the expectations are pretty low. david was talking about fedex. could there be a more epic disaster than the last report. it was down 20%. that number in september, september 15th i think it was, when they lowered their expectations they cited global macro economic trends there and announced big cost-cutting plans.

but the bar is very low here nike had a lot of inventory challenges a lot of margin challenges remember they get 20% from china, 30% from europe a lot of this is priced in analysts started dramatically cutting nike's estimates the early part of the summer it was a dollar for the quarter reporting today. and now it's 65 cents. so they have reduced 30% in the last several months. you can see nike being reduced the price lowering on that micron, just pointing out, big haircut on earnings projections for them as well and of course they're talking about lower demand a lot of that is priced in here. so nike, after the close, david, let's keep an eye on that one. back to you. >> bob, thank you. we talked a bit about nike as well before we head to break, let's give you a quick bond report we look how treasury are faring this morning we talk about this important move from the bank of japan basically saying the widening of

its yield control policy on 10-year government bonds, and many believe that will have an impact even beyond what you're looking at there but it is having an impact on our market you see yields are higher across the board. we're right back after this. >> announcer: the bond report is brought to you by -- no brea

>> a see it acourse the oard. members beginning of the program, reminded -- all the pandemic -- >> exempt. >> what's that >> thursday according to the investing story. >> thursday? >> santa comes to town. >> tintoryg spot santa. >> back after this.

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nike reports after the bell. >> you know, they had, so good for me jpmorgan sees potential upside revenue guidance, 22% this quarter china inventory clean. didn't expect that north american inventory plant on track and unchanged i did not expect that. those are positive things.

now, according -- this says the market will -- >> that's net boss from jpmorgan what do you got tonight? >> rusty braziel something that -- that year over year has, is not great, but month over month, pretty good. it's a win critical of the composite of jay powell but said look at other guys picking stuff. japan. outdid them, china, europe has a plan it matters oil is integral. >> get back to work. start making more calls. >> i apologize for viewers. >> you don't have to apologize. >> i'm talking -- >> on the phone. when we come back more on wells fargo's multibillion dollar settlement with the cfpb. jim has more on that on ad ney" tonight as well >> you betcha. >> keep it here.

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good tuesday morning welcome to another hour of "squawk on the street. i'm david faber with morgan brennan. live in post nine of the new

york stock exchange. carl has the morning off started down, but as you can see, the s&p and the dow both clawed their way back to positive territory. >> we're 30 minutes into the trading session. here three big movers we are watching this morning. start with general mills reporting better than expected profit and revenue for its latest quarter the cereal and snack food maker clearing its forecast in steadfast demand and higher prices look at the stock. down 5% in early trading, nonetheless. plus, lucid going higher raising $1.5 billion in a series of stock sales keep in mind, even though bounce be 3.5% now, it's down 80% year-to-date finally end with rocket lab under pressure again after announcing delay in first rocket launch from u.s. soil. virginia specifically. citing both poor weather conditions and regulatory delay. rocket lab due to this delay

trims revenue guidance shares down fractionally now down 66% lost about a third of their value since going public in august of last year. well, wells faro, a future, of course, last hour ordered by consumer financial protection bureau to pay a multibillion dollar settlement to what that agency called widespread mismanagement our next guest named wells fargo a top pick for 2023. let's get more joined by david long good to have you this morning. first, reaction to this news itself as our viewers can see. stock after reacting negatively a bit is actually in positive territory. >> sure. thanks, david, thanks for having me on the show this morning. a little surprise, the magnitude of the charge to cfpb $3.7 billion but not a complete shock. this stock underperformed month-to-date on rumors there

was a large fine and resolution coming $3.7 billion obviously pretty large, but the company does have a reserve against this within their financial statements, within their balance sheet that reserve up to $3.7 billion from $3.2 billion. not all bad. i think used for this, but something i think the management team knew was potentially coming but, you know, from the stat, as i said, something that was not a complete shock to us this morning. 'ed with the underperformance month-to-date. i think this does work as a clearing event the uncertainty what the fine would be is now out there and now we know what it is. >> yeah. i mean, i guess that was my next question is this the clearing event that many have hoped for so you can simply focus on the fundamentals at wells fargo >> sure. so the, when you look at the fundamentals of wells fargo, they are doing loans

a relatively good relative to peers. good credit quality due to diverse portfolio and doing a lot of things right fundamental. the other side is the esg and specifically the governance. that's something that's been a work in progress and is really accelerated since sheryl scharf took over. a long way to go this is a very positive to get this fine out of the bway, but still out there, and cfpb, as those come off that allows the bank to continue to improve operating efficiency, because they are spending a lot of money in vesting in -- in improving their internal controls to work past these issues. >> so sounds like, david, that you are still bullish on this name going into 2023 is that correct? and i guess in light of that, what do you think of the financials more broadly right now? >> yes

absolutely it is a stock we like into 2023. and by end of '23 i think some of the larger banks will start to outperform some small mid-sized banks. in the immediate near-term, going into january earnings, focus is still on the positives and keeping deposits with their banks and what they'll pay for those deposits first half of '23 we're looking for the investor focus to move more towards the liability sense of names those things that will put up some better manager's income when the fed stops raising rates. it's a credit. concerns about the consumer. concerns out there about commercial real estate. so i think investors will have a bigger focus on those two things the liability sensitive and credit in the first half of '23. eventually i do think they'll be

recovery but at least six to nine months away from that for the banks. >> dig into that a little more we've seen this broader market sensitive shift from inflation to recession fears and slowing economic growth and what it's going to look like in the next calendar year. financials and banks specifically beating unin recent weeks in light of that is it overdone or do you think that that makes sense right now, and thus, is providing opportunities to buy some of these names in light of that >> sure. no i think the investors are not broadly buying the banks here, increasing positions, because of the shape of the yield curve, which is inverted. the rick that earnings estimates are too high andi think earnings estimates probably have to come down for the banks broadly speaking then also, potential credit event where there could be some losses that come through so those are the fears that are out there that we need to work through, after january and april.

if we get a couple negative revisions to earnings estimates i think you'll start to see the investors come back to the banks a little bit more broadly. but i do think in the immediate near-term, there are franchises out there that are valuable. as much as we're more neutral on the banks i definitely think there's opportunity where you can make money on some stocks that are sold, that have sold off more so than others, or overall long-term valuations are not appropriate just because of a near-term headwind i put wells fargo in that name, a couple other, first republic, silicon bank and a couple other franchises i think are undervalued he. >> okay. david, thanks for your time. appreciate it. >> thanks for having me. the bank of japan shocking low markets overnight taking yields curve control policy amend senior economics reporter steve liesman has more hi, steve. >> good morning, morgan.

so now bfj odd bank out amid higher global inflation. the question now, whether the policy that is tweaking now is, whether or not it's joining the tightening crowd, but this morning, the boj, bank of japan, surprised markets by lifting cap on ten-year japanese yields to 50 basis points from 25. the effect has been global u.s. stock futures plunged, rallied most of the way back surged in the end, strengthening the dollar, weakened and on the move generally not expected for several months the trouble for understanding this move is that the governor of the bank insisted this is about improving market function and maintaining yield curve control. not beginning of a tightening cycle. governor karoda saying in his press conference "today's step is aimed at improving market functions. "thereby helping enhance effect of monetary easing and therefore not an interest rate hike.

boj's problem had been ten-year yield concentrating at top of the range there, 25 basis points other maturities volatile as well japanese inflation at that on the rise moving from deflation in april to now show positive rates, both headline and core. core remains below the 2% target suggesting inflation comes mostly from higher import prices not from domestic sources. okay where are we now markets need to figure out take him at his road. marketing functioning, not start of a tightening cycle and prepare for coronavirus's exit and a more hawkish governor could be coming in morgan >> just touched on it, market function versus policy tightening nonetheless, the move we're seeing in the bond market, in japan right now. what does that mean? how does that translate to u.s. treasuries and competition we could see here in this market and activity in this market? >> yeah. i think you hit the right word

there, morgan. "som "competition." higher rates in japan. chinese, bank of japan owns half of outstanding jgbs, my understanding. not a tremendous impact in the private sector japanese fixed income investors tend to stay home but a knock-down effect higher yields are, we've seen higher yields in the united states in part of because what happened this morning, or last night in japan. >> steve, stick around bring in senior markets commentator mike santoli to this discussion get your thoughts as stocks waffle amid lower volume a lot of potential volatility as well over these it next couple weeks because of holidays. >> and one a little test to have an overnight jolt into an ill liquid market, 3% move in the dollar yen exchange rate and see if something else gets knocked loose in the markets on that kind of a move so far it doesn't seem like that's been the case i guess that's a modest test

passed then, alluding to, the way it's released other global yields higher it's happened at an interesting spot u.s. treasury yields, german yields, any that you want to look at across the world, a similar setup. pulled back to the highs reached in mid part of this year and now seems like maybe that's just a short-term floor maybe we can rebuild towards that it's not because of this necessarily altering the global central bank tightening story or anything like that seems as if we're now, we have the anchor of japanese rates it's a little set higher that's about all it is now, when it comes to our stock market, i don't think you want to see the dollar go down for this reason but a weaker dollar compatible with our market getting a little bit of relief, especially when it is that kind of a global earnings story it's been, i think, a big worry point into next year. >> yeah. speaking of our market, mike basically we're flat on the s&p right now. we came in, again, quite a few

down days in a row here. the nasdaq down 33% year to date. showing signs of light any thoughts particularly as morgan mentioned given time of year we're in here >> starting to get in the short term a little stretched. think about the high we hit in the s&p 500 on the celebration of the good cpi report a week ago today. 4100 to the penny. yesterday's low, 3800, to the penny. esee, seems like the market wants to try to test to the see if this is a range we're comfortable with valuations continue to bleed out of the most expensive, popular mega cap nasdaq stocks a constant all year a bit of a weight the rest of the market found a way to stay supported lower end of the trading race. what we're figuring out now. it that something to bank on or not. >> yeah. speaking of banks, steve, shift gears a little go back to the conversation

having with banking analyst a few moments ago. one of the things mentioned possibility's a credit event the non-bank lending portion of that market. certainly been getting more attention, i think, in recent days recent weeks, and then just yesterday op-ed from bill gross flagging private equity, areas where there could potentially be another shoe to drop i guess walk me through what that means in midst of this fed-tightening cycle and whether central bankers are watching some of these more shadowing credit areas of the market pretty closely in light of that? >> i think they're watching them, and certainly somebody's going to go broke in thi process. somebody was out there long forever low rates, and is going to get caught short. some folks are going to have to refinance into higher yields that perhaps the business that they've financed before can withstand. the key to look for, morgan from

my standpoint, look for tentacles of this lending back into the banking system. so far so good it looks like crypto did not come in and have, create big losses inside the regulated banking system i've been looking at corporate bonds,which have a -- a big refinance shuffle. looks like 24 and 25, but not next year. looking at commercial lending. they have, you know, probably the office space, space is the one hit hardest. i see a big shelf again down the road not so much next year, but there is going to be office space, going to be corporate bonds, all sorts of stuff here, david, as you know and add in private equity world, displaced and perhaps in a dramatic way looking at higher yields. >> without a doubt you're right to focus in part on commercial real estate and certainly empty office buildings. a subject we'll get to a built later in the show. steve, mike, thanks to you both.

>> sure. as we head to a break, give you a road map rest of the hour including the latest involving ftx founder sam bank frann fried. another bankruptcy hearing under way this hour. plus, streaming stocks struggling in the month of december, and this year. names like disney and paramount down 10% since start of december take a closer look. plus -- k call the is rise of zombie office buildings in new york city as manhattan's real estate worse in years a big show still ahead don't go awhe.nyer

welcome back the stocks of media companies like the ones you're looking at there, relying on direct to consumer and the ad market, well, they're having a rough december, not to mention a rough year joining us now on-set at the nysc, rosenblatt securities, talking about what to expect nice to see you in-person. >> happy to be here. >> it's been a brutal year we can look at all of your charts going into next year, what's the conversation with clients? what changes that conversation in part so that perhaps there's a more constructive future for some of these stocks >> i think looki ahead to next year hard to deal how things will be much better. the setup is more concerning in a couple ways. one of which is, this economic reset continues we actually see job losses ad market's going to be weaker

correlated if things are tough now, wait until what happens next year if the economy truly softens and a headwind for subscriber growth seeing signs of saturation in this market and consumers spending on particularly second and third tier streaming services subscription services. questions around how strong will that really be and then the competitive situation. so the companies that are big platforms that later streaming on as kind of the hold on don't necessarily need to make money from streaming. >> amazon apple, two key ones? >> yes and get bigger in sports will that make them bigger competitors? is this really a business that can exist as anything other than a bolt-on, a throw-in for a bigger platform. >> yeah. a lot of different things there. obviously. that question, can it exist? i mean, can it -- asked for years now, but investors asking it a lot more forcefully over the last year.

is there really a return to be generated from this business that is a viable return and one that, therefore, should be rewarded in the marketplace? >> a lot of reason to debate that my belief is that it can be. i believe that disney, troubled as they've been, stock over the past month, leadership genius they have a brand proposition. leveraged that in other ways, and they have a residence with the consumer i think can work. netflix i think is scaled, expectation games for the stock relative to a question of whether they're make it. they'll make it, but the others, questions there. >> so the others. is streaming the new cable bundle partnerships and mashups and consolidation in terms of the many, many platforms out there >> i think that certainly it's going to be a new bundle but that doesn't necessarily mean that consolidation is a great equity play. we see the down side of

consolidation with warner brothers right? warner brothers discoveries. so theoretically makes sense for those two businesses to be together from an operational perspective, but from the leverage put on it to make the deal happen, it's not a great setup. in this environment. so you know, m & a can be a provider of value, also can be taken away i think new bundles, trends seem to be healthier business models trending towards platforms, layering streaming on. amazon, apple. that is the bundle of the future i think more so than something that is pure streaming. >> so any stocks you like as we have this conversation right now? are you steering clear and cautious going into 2023 >> most favorable are kind of adjacent to streaming. liked sports plays, liked liberty graves a niche play i think that the formula 1 business is a good play.

light nation i think a play on hydening celebrity culture kind of -- >> in that liberty family hard >> in the liberty family not all of it but much of it i think is well positioned i think that the, within streaming is an opportunity for disney i think their ad play unlike netflix, going to get a lot of people signing up. a lot of ad volume to sell i think that's a meaningful -- >> end on netflix. you say "unlike" netflix, what's your success of the ad tier? market responding to other stories, out there negatively? >> i never bought into the idea advertising a big increment at netflix because i didn't buy into the idea they were putting up an ad many would want to sign up for they initially announced basicry advertising where you only get one stream not the full high-def don't download it. something not many would want to

stein up for and i thought disappointment relative running with the stock and seeing that play out to a degree now see where they take it could they make advertising more prominent? yeah i think there's a tension there, because this has been an ad-free business and ad-free management team i'm not sure wedded to going all-in on advertising. unlike disney. had a lot of success with hulu and can translate that into disney+. >> thanks for stopping by. >> keep going nicholas sparks movies whew tear jekers. on netflix right now tier jerkers. heading to break under pressure announcing its tightened and acquired by a biotech team warning the deal could impact it's 2023 eps by 18 to 22 cents per share. ayshesow3% st with us.

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the stock shot up friday by double digits following news its space imagery and construction company taken private. the deal valued $6.4 billion including debt 129% premium versus where maxar closed the day prior led deal raising eyebrows in the industry but the chairman and managing partner telling me with over $28 billion invested just in defense, aerospace and cybersecurity in the last three years alone, the firm sees value in this deal. >> in the context of a public company, some of these businesses are really lumpy. big capital expenditure cycles, elements that are hard to predict, like when the next launch of the new legion satellites will occur. so some of those things create uncertainty in the public markets, but as a private investor we're willing to be patient, and make sure that this company gets off the capital and

opportunities at the right time frame to make these bigger opportunities happen. >> and maxar has become more of a household name this year as provider of many satellite pictures we've seen of the battle in ukraine, and also in the midst of a multiyear turnaround, though, and more capital could mean faster deployment of that next gen con s s constellation region. >> obviously, measure twice, cut once once in space, this requires a tremendous amount of work, and simply are going to have these type of delays when dealing with this type of complicated asset part of why we think in a private context that we can make sure that this company gets all that it needs and the time to successfully launch these. >> everything in the context of

the going private is competitive in a certain way, and so for us, we had to craft what we felt like was the right price for the shareholders and a fair price for our shareholders making that new investment and in this case, we felt like that was the right price for maxar. it certainly represented a significant premium, and it's a great reflection on dan and the management team. >> all right catch more of our conversation on "manifest space." my podcast wherever you get your podcasts much more detail around all of that and details of the deal, david, including that 60-day go shop period. attached to this as well i get the impression feels pretty confident there's not going to be another bidder coming in? >> quite a premium in ways hard to imagine. obviously, typically a part of many go privates were you surprised at the people yum? >> yes. >> you know the company fairly well i don't know if you heard of

cover bids or anybody else might have been there. give me a sense from your reporting. >> well, i mean, i think there had been whispers maxar was for sale for a while it's also, my sense from a few folks i've spoken to maybe other companies had passed over the company. other folks in the industry passed over the company because of that price. but in this particular case, for advent, has $89 billion in assets under management as of end of the third quarter, has a number of other airspace and defense names within that portfolio, i think as was touched on there by mussafor an opportunity to expand their footprint in s secularly speaking celt to grow and grow aggressively in coming years looking at defense spending and other aspects of government spending and the like. >> yeah. it was a big number, but, again,

they seem confident that they can make it pay off. all right. move on here time for a news update contessa brew hear that. >> what's happening at this hour strong 6.4 magnitude earthquake rattled northern california knocking out power to more than 70% of humboldt county at least two people injured. county officials are reporting widespread damage to buildings and roads. watching this throughout the day. in ohio, a state-wide amber alert in effect for a missing baby after a car was stolen last night with twin 5-month-old babies inside. one of the babies was found early this morning at the dayton airport. some 80 miles away in a car seat wrapped in a blanket but outside. their mom says she left them in the car with the engine running. she ran into a pizza shop and turned around and they were gone. and on a different note, massive crowds in argentina celebrating, of course, that historic win in the world cup

final. argentina's president declared today a national holiday in ba wane aces ar ez more than 100,000 people gathered in the heart of the city to honored world cup victors and atop the observe lisk waven an argentinean flag dangling more than 200 feet above the ground nothing says a celebration like the risk of death. just saying, morgan. >> i'm getting, like, nervous just looking at that height. also just have the to say with all of our blue on the desk, seems we're kind of celebrating argentina even though that wasn't maybe the intention. >> that's all right. lean into it go ahead >> we'll do it do it. messi, come on. big deal heading to break, mixed data sending housing names low perp talk with the ceo of one of the country of largest home bude that is coming up next. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are?

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. welcome back to "squawk on the street." joining us to discuss state of housing taylor morrison chair and ceo sheryl palmer. great to have you on the show. i do want to get your thoughts on some of the housing data we've gotten and what's poised to be an even busierweek in terms of that data right now specifically, i want to start with -- excuse me. i want to start with the numbers we saw this morning, and what they're suggesting about forward demand as we look to 2023. >> well, thanks for having me, morgan really nice to see you yeah the numbers this morning, i don't think were quite surprising i mean, i haven't had an opportunity to really dig into it but i think starts down 30% 3shgs 2 32% year over year permits down a little less than that, and i think more than anything it's very hard to take one month in numbers and arrive

at real conclusions. i think there's a disconnect for what we're seeing happening in realtime in the field, and the lag effect of those numbers. builders for the most part, i think, are aligning starts permits obviously before starts. to what they're seeing in the field themselves, and then obviously you have the seasonality that certainly is back into the business. as we move into the holiday season. >> so sounds like what you're saying is that you're seeing a slowdown, maybe a slowdown faster than expected >> i think we've been seeing a slowdown that actually accelerated early in the fourth quarter. i mean, when rates started moving to, morgan, what was close to 8% 60 days ago, certainly had an affect on the consumer and once again we're moving into that traditional season, but absolutely i think we entered what i would call a housing recession over

the last many months, and we had seen a slowdown. because there's a good deal of inventory in the new home market being built since early in the year very different than what we're seeing in the existing home market, where we really are somewhat constrained from an inventory standpoint i think what that means, as we move into next year we should expect that overall volumes will drop from the peak levels we saw in 2022. >> somwhat does that mean for pricing of new homes under pressure and what does it mean for builder incentives >> absolutely. pricing has, i think, been, you know, moving down a bit, since i would say early summer, and then i think the pace of some of those incentives were adjustments, continued as we've moved into the fourth quarter, but the way i would look at it, morgan it's actually a wonderful opportunity. it's actually a wonderful time

for the consumer to go out into the market, because if i roll back to last year, even the spring of this year, there was no choice for the consumer there was, it was difficult for them to secure a, for them to secure a home. it didn't matter if you were talking in the resale market or new. today there's actually product available. a consumer has choice of lot they can really build the, you know, home of their dreams, and at the same time to your point, the builders are helping i think you're seeing that through incentives that are really focused on the finance side, and it can be great buy downs, allowing you to ease into a mortgage rate over two or three years or can be a permanent buy down really good responsible lending that we're seeing, and it allows the consumer to have full transparency and understand what their rate, what their mortgage

payment will be for years to come >> just in terms of the mortgage piece of this puzzle i mean, i remember i bought my first home in 2005 locked in nearly 6% mortgage and feeling pretty good about myself after more than a decade of easy money policies and exceptionally low rates, when you have the fed chair coming out saying that rates are going to be higher for longer does this feel like a tight environment historically speaking or does it feel like more of a return to normal, historically speaking where mortgage rates are concerned >> you have a whole generation that has never seen rates over 4%, 5% until recently. i think the fed has been very clear that, you know, he has to curtail inflation, and that home builders and home ownership is kind of in the cross hairs of that and that a 6% rate, if you look at any long-term norms, is actually a very good place, and

certainly compared to what we saw two months ago when rates approached 8%. having said that, you know, a consumer buys payment per month. and if you think about what happened over the last 24 months, consumer was able to buy a much larger house, because rates were so low. we really need to see both rates and prices stabilize, normalize, and i think as we start moving into '24, and the fed has already started easing back, i think we'll find what that normal is. today, morgan, it's not as much as rates i know that sounds odd for me to say that it's really about confidence and the consumer understanding where things are going i think once they had some disability into what's happening on a macro level, wuonce they kw the fed's gott not going to continue we saw 74 basis hikes in a

matter of four months. that's unprecedented think about the consumer and kind of decide what's the right time, and you get to get some normalcy then i think once we rebuild again there. >> sheryl palmer, thanks for joining us today ceo of taylor morrison. >> thank you take care. after the break, the latest involving ftx founder sam bankman-fried with another court hearing under way in the bahamas. the details, next. don't go anywhere.

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another day the chaos in crypto ftx founder sam bankman-fried expected to surrender, a court hearing may be getting under way in the bahamas kate rooney can fill us in on what's going on right now. >> reporter: court back in session at the bahamas after a pretty chaotic hearing there yesterday. sam bankman-fried has not arrived quite yet.

unclear in the former ftx ceo will be there, but his lawyer showed up and a kchaotic hearin yesterday. supposed to waive extradition and immediately sent to the u.s. that didn't happen a lack of communication between bahamian and u.s. legal teams. declining to comment and nbc news tells us both sides voiced confusion yesterday in that courtroom and the hearing scheduled so bankman-fried could accept extradition but lawyers said his client first wanted to see the indictment against him before making any decisions. and a local defense attorney said he was surprised to even see bankman-fried in court at all. end of the day local attorney told reuters and local reporters hi client agreed to extradition voluntarily, defying "the strongest possible legal advice." what we expect today a source confirms that

bankman-fried is expected to accept extradition if and when that happens, flown to the u.s. for a bail hearing denied bail in the bahamas last week and in a correctional fast since bank ma fried indicted in new york in a federal court last week on eight criminal counts and faces civil suits from the s.e.c. and declines to comment and a bankruptcy hearing going on right now throughout ftx's new margaret team. that's under way and ftx saying in a filing a number of parties shown willingness to return money that would eventually be used to repay customers. so far though, mostly administrative business and bring you headlines as we get them back to you. >> kate, you know, if he comes back, which seems likely he's going to be in new york right? held here. i believe. is that correct? >> reporter: that is what we're hearing and too to say based on the confusion of

yesterday, skepticism this will get under way. if things go as we're hearing, he would get extradited, a bail hearing. the big thing. arguing he should be let out on bail differences of opinion on if he is likely to get out on bail most high-profile white collar crimes, you think bernie madoff, released on a bond in this case, different in a lot of ways, but i should mention very much what they're fighting for. >> kate, just broadening out to look at the crypto space a lot of speculation swirling around that we could see other exchanges. in trouble, in light of this and just as regulars take a closer look and as more former crypto enthusiasts pull more funds right now, any sort of sense of that from your reporting and from your standpoint >> reporter: one of the big names floated out there. ceo on our own air has said this is not the case, but binance one

of the biggest exchanges in the world because ftx is no longer a player binance 75% or 80% of global trading volume and a lot less trust in this ecosystem. and they've had to come out things like proof of reserves. last week some of the auditors working with these exchanges say no longer working with any crypto company so any of these exchanges are looking for someone to back them saying, hey, we can vouch for these guys now that auditors don't want involved becoming harder, and a lot of questions on hwho's solvent, who's not a lot of folks pulled money off of these it exchanges in the meantime. >> thank you. heading to break, let's get a quick check on the markets with the dow up 153 points right now. s&p up 14. 38.32. nasdaq higher by a third as well pap third percent i should say

we're back in two.

welcome back the spac boom has fizzled. a piece in the journal this morning, the latest to take a critical look at palantir and it's spac invested strategy. as a strategy, i should note it's since been scuttled a high-profile casualty in the spac slowdown. stock is down 60% a year today as it has contributed to a slowing growth rate, revenue rate on the commercial side of the business but the ceo telling me at the reagan national defense forum earlier this month that in terms of how wall street views the stock that wall street has had it out for tech and growth oriented business overall. take a listen. >> i think wall street largely understand we're a tech company and punishes all tech companies

right now. all of our products historically whether intel product, ai product that changed the world, five years ahead of the market, our commercial offering is five years ahead, three, four years ahead of what wall street probably understands >> so i didn't ask him specifically about the spac strategy, but that was his response, david, to the fact that the stock has been falling all year. >> it has. >> despite the fact that you do see this increased demand for its government-focused products. despite its decelerating depending on how you slice the data, decelerating topline growth rates on the commercial side of the business,that was his response to that it is interesting. you have this journal article today about spacs. you have yesterday this article from david ignatius in "the washington post" about the quote, unquote wizard war in the

ukraine conflict and the role palantir is playing in that, something we discussed in that interview as well. >> it's funny. i had a source this morning that said they assured me, they told me about palantir and their spac investments over a year ago. i don't recall that. but in reading the journal this morning, i found it somewhat surprising they were taking investor money, making investments with the return being that these companies they were helping to fund would buy their software. as we know, of course, as our viewers know from reporting on spacs, many of these had higher redemptions and started without as much money as they thought for growth capitol and a number have gone bankrupt but the whole thing doesn't seem right because they were helping to fund their own organic revenue growth through these investments. and obviously it's come back to hurt them because, in fact, the

equity investments themselves have ended up in some cases being a zero because these cases are bankrupt not to mention, they can't follow through on the investments they made to buy the software. >> yeah. we should note, this is actually more -- i don't want to say common, but it's happened more than you think i think different companies use different strategies when they have done things like this case in point, virgin orbit, which is another name that was a spac that went public late last year that made a series of nvtn investments as well. you do see some of these types of relationships whether it's right or not, it's certainly legal, right. >> it's legalized. i have to say, i was somewhat surprised to learn of that, particularly because it did -- even though the dollar number was not that large, it was a significant portion of their actual revenue growth. >> yeah. all right. we could keep going with this. we're not going to do. we will get to dom.

>> stocks are at highs right now after a quiet start for the day. we do want to take a look at some of the technology bright spots today. it is a middle of the pack performer right now. first solar shares higher after analysts at golden sacks reiterated the buy rating on that stock and hiked its target price to $179 a share to $231 a share, giving a boost to peers first solar is up over140% in just the last six months certainly one of the names we will keep an eye on in technology more ahead stay with us right here on "squawk on the street. sponsored by spector spider etfs

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after the bell, we have two economic bellwethers to watch in terms of earnings. nike and fedex both set to report both names that will give us a glimpse, david, into the holiday shopping period and the strength of the consumer and, of course, two names that had a really rough go of it after their last earnings. fedex in particular with its preannouncement a week before

earnings in september really widespread jitters for investors and the markets. so the expectations are pretty low going into this. but we'll have to see what commentary is and whether these are two names that can meet those expectations. >> that will be key. that will do it for us right here "tech check" starts right now. >> thanks for being with me. >> left me hanging >> left me hanging ♪ that was cold. good tuesday morning and welcome to "tech