the market giveth andt taketh away the nasdaq off by131 if you're watching the ten-year, yield's been hanging around the same price it's been it's -- ten-year yielding 3.86%. that does it for us today. make sure you join us tomorrow we'll be right back here hope you are too right now, it's time for "squawk on the street. ♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. futures do lose some ground here as david tepper suggests caution on equities. hotter than expected final q3 gdp revision doesn't help but yields in the dollar still within yesterday's range our road map begins with legal pressure building. two former top ftx associates

pleading guilty and cooperating with federal prosecutors as founder sam bankman-fried awaits his arraignment. plus, believe the fed, david tepper telling cnbc he expects rates to keep rising and he's leaning short on equity markets. and slumping computer chip demand has hit micron, which is now slashing 10% of its staff and suspending bonuses let's begin with ftx founder sam bankman-fried back in the united states after being extradited from the bahamas last night. he could appear in federal court today as he faces criminal fraud charges related to the collapse of his crypto exchange meantime, federal prosecutors say two top bankman-fried associates, former alameda ceo and ftx cofounder, have now been charged. here's u.s. attorney damian williams making that announcement last night. >> both ms. ellison and mr. wang have pled guilty to those charges and they are both cooperating. let me reiterate a call i made

last week. if you participated in misconduct at ftx or alameda, now is the time to get ahead of it we are moving quickly, and our patience is not eternal. >> the s.e.c. civil complaint, jim, argues that they and bankman-fried all knew that alameda was investing client assets in risky bets >> you know, from 2019, i mean, this is one of those cases where you had to get in fast they're going after everybody. if you don't surrender and give up key information, they'll go after you too. david, this was a foot race, and these people were smart and well advised to be able to get their view in on this gentleman we're looking at ahead of when he got here >> yeah, i mean, its also solidifies the case around the idea that obviously, they were misusing customer funds, using it for alameda, that he potentially controlled alameda all along, despite the fact that ms. ellison was its so-called

ceo and he did own 90% of alameda. i think 10% was owned by mr. wang, who's also cooperating. not looking good for sam bankman-fried, you would have to say, to a certain extent, given what they're going to offer up as part of their plea deals. >> if you're sam bankman-fried, you have nothing what does he have to give up he's it. one of these situations where -- not that i went to law school for nothing -- but what you want to do is you want to give up something, but if sam bankman-fried -- who sam bankman-fried is going to give up himself? they don't want anybody else other than sam bankman-fried there's no, like, mysterious figure behind this man he's it. so, you always -- if he went in there right now and said, let me tell you who i have to give up, they would say, we don't care. we have you. and that's all we need >> what do you expect in terms of bail conditions

>> oh, i think this guy's a flight risk if there ever were >> you do think so >> this guy, who knows what he's got hooked up. to let this guy go is to say that we can let anybody go we don't know how many millions he has stashed >> you think they're going to keep him >> yeah. if they don't, i think they're really foolish >> can't you keep -- have him a little ankle thing >> the guy is a master mind criminal >> he's a mastermind criminal? >> by his own -- i'm not using alleged. when a guy says he's a criminal, i'm not going to say, you're an alleged criminal, be careful if you admit to criminality, it makes it harder to say alleged >> well, i was hoping that he would be out and then he'd most likely be sitting with us pretty soon >> spilling everything >> he seems to want to talk to anybody that will listen >> i think that's a good point i think that if he were -- maybe chained to our chair, he could comment on anything.

he could talk about tepper tepper made a point today. he said, it is what it is. about 14 times, he said, it is what it is what i realized is, it is what it is. >> are you making fun of your buddy, tener >> i am not. when i had frank on and i said, i want to know -- i think that your forecast is interesting he goes, my forecast is my forecast my outlook is my outlook dave tepper basically said, my view is my view. >> yeah. >> i think that's kind of -- when you hear that, what you realize is, it's his view. >> it is his view. >> i mean, he said -- what did he do? he said, take central banks seriously. >> probably worth talking about a bit more, don't you think? >> take central banks seriously. the forecast is the forecast one of the things -- i speak to him periodically, but i'm not allowed to say that. i'm sorry. i shouldn't have said that we were talking about christine lagarde, 50 basis points

well, you then don't say, what she really meant was 25. you kind of keep it simple you keep it simple you give away mccaffrey, and you -- >> i found tepper fascinating. i listened to every word he had to say >> i did >> even if he did say, it is what it is >> i said, please be quiet, even though i just learned her dad played golf with my late uncle i said, i don't want to hear that because tepper's on and there he was central banking. >> there he was. and he talked about -- >> he central banked >> he was very focused on the teddy bear that is how he referred to chair powell versus the grizzly bear, which is how he referred to christine lagarde. >> yes >> and he went on from there i think we've got -- >> you have some clips maybe we have a little clip? >> we have a nice clip that sort of embraces his view of both what the fed and the ecb and the boe and the boj are doing.

>> wpa and the wnba and also the nfl and then cmc >> and how that translates to his view of the equity market. take a listen. >> just because i tend to believe, as a base case, when these different central banks and other government officials tell me what they're going to do, if there's work for me over time and it has and you know how i know it has i talk about it. it was a really great thing on the one side, a real big opportunity in 2010 at the beginning of qe and i said to you a long time ago, what will go up? everything now, it's going to be just difficult for things to go up right now. >> why do you disagree with that viewpoint, jim >> well -- >> or do you >> i think it's nuanced. i think that if you're trading in the s&p, he's right

and 26% of the s&p is technology i think technology's awful we'll talk about micron. there's a lot of the -- of what i would say the generic industrials. they could be questionable if we keep tightening. but there's too many companies in the s&p to do well. and i think that david is too -- he has too much money to go individual and say, you know what, this time, i'm going to buy merck and short microsoft. he can't do that he's got too much money. i'm a granular guy, as i think many of our viewers are, and they're not shorting the s&p but if you're dave tepper, you got to do that, and overall, the majority of the s&p could be hurt so, why not do what he's doing >> right again, he's talking about 220 in s&p earnings for 2023 and asking the question, why shouldn't the multiple be 16 it was -- that reference he was making to 2010, when, of course, the fed was going theother way all in, and he said, i went in

all long the market multiple was around 11 >> you have the financials that are challenged by what he's talking about. you have the -- you have big tech that is challenged. and you talk about 60% of the s&p that's problematic that's a lot of the s&p. so, why not go short he did not talk about this, like, giant collapse i think he just said, look, he's leaning short. i don't want to see more than what he said i'm going to go to you, carl >> he basically pivoted to that lean short thesis, sounded like lagarde was quite a catalyst here's what he said. >> i would probably say i'm leaning short on the equity markets. you know, so, right now. because i think they're -- i think the upside-downside just doesn't make sense to me when i have so many people tell me -- so many central banks tell me what they're going to do, what they want to do, what they expect to do >> his larger point, jim, and

he's not arguing that we're seeing deflation in goods, but getting inflation below 3.5% to 4%, given our structural labor supply problems, lack of immigration, that's going to be stubborn >> yeah, but, i mean, i don't -- i don't think he's bullish or bearish. what he's saying is, look, it's not great. but at the same time, let's just understand, everybody kind of knows that this stuff is happening. we can't get inflation under control yet. if we got inflation under control -- >> by the way, jim, he's saying the same thing you've been saying, which is, it's not about goods inflation. it's about service and wage inflation. he's saying the same thing >> he is saying the exact same -- i'll be honest i kind of agree with tepper. >> you agree with him in terms of what the fed's trying to accomplish, although he is higher than you. he has a 5.25 terminal rate. you're not willing to go there >> no, i'm 4.7%. the two-year went to 4.2%, and i

think that dave is right, we are having an incredible difficultly. look at the numbers we got this morning. s >> it's pretty backward-looking. >> i've got, you know, i have smucker on tonight, and i was going over what they might say and listening to what general mills said last week inflation is terrible. egg inflation is bad i mean, now, because it's aviary flu. there's something that goes wrong every week but the one thing that's absolutely certain is you're still paying more for labor. no one's paying less for labor, and we still haven't figured out how to handle what happened with covid, with people staying at home the only thing that's going to go down, david, is office rents for not grade a properties >> those are coming down well, if you can even find anybody to take them at all. >> i don't know what they're

going to do bulldoze them? >> no. create parks it's not really a great return on capital they'd have to go through the full bankruptcy process. >> floors and floors of parks? >> no, raze the buildings and have a nice park that would be nice, wouldn't it? >> we talked to jan yesterday, jim, and you do have a situation where gasoline, almost an 18-month low, but wages are sticking high, meaning more buying power, meaning the consumer consumption might fare okay this year >> the good thing about the consumer is they're going places the bad thing is, it's very expensive, and when they're done, when they come back, they don't have as much money they're not making -- look, the job hop essentially is over. but to keep people -- look, remember what craig jelenik said he said, wages are tough craig jelenik. >> wait, craig, the ceo of costco, said what about wages? >> he said, they're sticky

you're not getting a big break in labor >> right you're not paying less >> i think what happened is -- i know this is going to sound antithetical to capitalism, but carl, i think a lot of people discovered they didn't like their job. they had enough money to say, you know what? i don't want this job. but they misjudged the gap between medicare advantage and when you take social security, and they just critically thought that they had enough money if they were 58 to 63 to get to the promised land. >> of retirement >> yeah. and i don't think they -- i think they've misjudged. >> there was some reporting earlier in the week that we're starting to get a bit of those people back. >> tepper kept talking about being a million short and about needing immigration, legal immigration, people coming here to actually work to fill that gap. >> i mean, i think that immigration is -- i think they've gotten a little more loose about who works. that's why in the restaurant business, it's easier to get people >> yeah. although -- >> what do you mean, yeah? restaurant business is big

business in this country >> i know. no >> i think rates are going to remain high for a while. that's the underneath -- i think there's going to be tight labor markets, continue to be a source of inflation >> i like the teddy bear versus grizzly bear >> i didn't like that at all the endless, endless making fun of jay powell. >> he wasn't making fun of him that was being very nice >> he was using my jellystone analogy last night he's addicted to "mad money. >> he can't get enough >> who isn't >> really? >> it's a good question. >> that's all i wanted to hear >> 6:00 p.m. eastern time. >> right over there. >> we'll take a break here when we come back, we'll talk some micron, as jim pointed out, not just the quarterly print but some of the margin guidance, head count reduction, suspending bonuses. we'll talk about what the ceo said about chip demand quite a bit of news for a thursday before a holiday weekend. we're back in a minute

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micron shares down in the premarket. the chip maker reported a loss company announcing plans to cut approximately 10% of the workforce. here's what sanjay had to say on the earnings call. >> we are confident that the broad advantages enabled by

data-centric technologies will create long-term growth for our industry and expect the total available market to reach approximately $300 billion by 2030 >> jim, they did say maybe inventory returns to healthy levels middle of next year >> i thought it was such a bearish call that i read it twice, because i didn't want to believe the first time he's talking about actually sequentially, things getting worse, that the demand for pcs is bad, and now it's the pcs and the handset, and then he added the enterprise, the -- basically the data center, which i think is related to the fact that meta had been the biggest buyer, and they have cut back david, not only was this a negative call, it was also a call which just says there's an outfit called samsung that is just not playing by any rule whatsoever and it's just pumping them out, and it was -- it was a call -- now, unlike the stuff we're talking about with tepper,

this is what i deal with i deal with a huge company, micron, that has to lay off people because they simply don't have demand, and there's so much excess supply, and the supply is coming from korea, which doesn't seem to care at all about how much money they're losing. that's samsung you know that samsung is like an arm of the government, basically. >> it's the most important company in south korea, without a doubt. yeah >> we don't talk about them enough >> no, we probably don't it is a very important company, you're right, with implications, obviously, for names like the one we are talking about here, micron do you feel like sanjay misjudged the cycle? >> no, i think -- he said it's the worst since 2008, but we've both followed micron for 40 years. i think that this is -- this is just a horrendous moment for this company now, this company has got great b book value, even bought back stock.

i think they probably wish they didn't the government gave relief to the semiconductors >> they have plans to spend many billions on new fabs approximate >> to get them off taiwan semi, but if you have a large competitor that does not respect the fact that pc demand is down big, that handset demand is down big, and now the datacenter -- the datacenter is down big it's weak. >> margin guidance, by the way, for the february quarter, down to eight street's at 17 ubs suggests at some point, do they start writing down inventory? >> yeah. there were many people who felt this was the last bad quarter, and they're getting their heads handed to them do you know that i did french to david, and he didn't even notice >> what'd you do to me >> i said, no exit it's a novel >> sartre. >> i try to throw stuff at him

>> i miss it >> every time. >> right over. past me, left and right. >> if it's not phillip roth, he ain't never heard of it. >> i keep it very tight. >> cramer's "mad dash" and the opening bell coming up in a minute n'goway.

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all right, let's get to a "mad dash" as we count you down to an opening bell, less than seven minutes from now >> just -- you keep moving away, so i just figured, why should i even be in the picture >> what do you mean? >> you used to stand right here. and i was right here but now you're right there >> this is where i've always been >> no, it's not. that's not true. that's a nice tie and jacket >> i wore a full suit for you today. >> yesterday, you had two suits

on got dressed in the dark. >> today, carmax will you just do carmax? should i leave >> stop it carmax is an example of what i'm talking about in terms of dave tepper, okay carmax numbers are horrendous. total wholesale units sold decreased 36.7%. that revenue's down. used cars, david, they were -- they're very important in the cpi, and they are just plummeting plummeting in value. so, it's one by one by one, and the teddy bear, which i really hated that >> you didn't like that. dave tepper's reference to chair powell as a teddy bear, meaning that he makes you feel soft and fuzzy and warm >> i want one big -- shut up i want one billionaire to come on and not make fun of this man. they're all officers i didn't mean that >> you just didn't want the sound. >> i just get mad that every

billionaire makes fun of jay powell and he's doing his -- somebody yesterday sent me this thing he said, do you know economics classes? well, great. the fact is, these things are working. they're all working. they just take -- >> it's working. it's not working for carmax, though >> we need carmax to keep going down as part of the broad mosaic that the teddy bear needs in order to be able to win. >> got it. >> all right >> and then when you see dollar general's numbers, they're going to be very strong. that's a tradedown a lot of these cereal companies. you see general mills trade down we're getting trade down at last we're getting bird flu, of course, which is hurting eggs, but one by one, one by one, the commodities are going down, but the wages aren't if we don't get the wages down, then the billionaires are going to be right. >> all right we got an opening bell just a few minutes away stay with us

>> announcer: the opening bell

the sbrbrought to you by nuveen leader in income, alternatives, and responsible investing. story we talked about this time yesterday, we now have official word that nfl sunday ticket is moving from directv to youtube tv nfl and google have reached a deal, multiyear deal, for the package, worth roughly $2 billion, jim. >> i think this is a steal for the people at youtube, because unlike directv, youtube is -- you know, directv, tim copeland explained to me that the technology was very old. i never forgot it. the technology is very old the technology that alphabet has to interact with what they're doing is going to make them, i think, the number one site for fantasy in the country i think that they will be the number one site for gambling if they choose to i don't think it's anything unseeming. this was a brilliant move. >> yeah. i do want to make the point that that $2 billion number now that we're hearing is below what was

reported yesterday by "the journal" and the "times," which had as its high, $2.5 billion, so it's above the $1.5 billion a year that directv was paying but not as much as had been seen, at least yesterday. >> cnbc realtime exchange. at the big board, the new york stock exchange, security team. >> look, i mean, i work late because of this show, and if it weren't for these people, i would be, let's just say, it's comforting to have them. they do a fantastic job. fantastic job. >> pleasure to talk to going in and out of the building every day. >> that's true they also want to talk markets with us. >> they want to talk safety with me when i walk out at night. yesterday was the darkest day of the year thank heavens everyone was there looking out for us be aware of that >> at the nasdaq, it's the food bank for new york city by the way, days start getting

longer >> it's all over now it's fantastic just a great day david? >> back below 3,850 here to start the morning. there's been discussion about december the last down december we had, four years ago, you had to wait until the last four sessions before santa really arrived. >> that was the panic. that was -- those people who were -- i agree that at that point jay powell became teddy bear he made some real slip-ups, rookie mistakes. this time, he's not making them. he's being -- let me just go back on this teddy bear. he's been the best central banker during this period. someone was arguing, he's soft you've seen these other guys i mean, what have they done? they're just waiting, hoping in the meantime, jay powell recognizes that we have to change wage inflation, and i think he's doing a really good job at trying. i don't think the others are trying at all. i think that europe's a complete mess and we don't talk zelenskyy and the implications there, but the

implications from the omnibus bill that david was talking about would mean that would be something that would be a game-changer in terms of how ukraine is being, really, a not just ally, but part of nato, which would be very frightening to the russians. i think we have to keep that in mind, because there's a lot of things going in europe where the nato alliance is getting split because of oil i was doing some work on russia. do you know they literally have more easily accessible, long-lived oil than any country in the world >> yeah, except they don't have the expertise to actually get to it themselves. >> they don't need it right now. >> they need western oil companies. >> not yet >> to help them. >> not yet they have enough money to hire -- you know, they're hiring -- they're trying to hire as many, you know, hired guns, french foreign legion kind of

thing, and i don't think you can -- >> wait, they're trying to hire what >> private armies. >> how does -- i was talking about them getting the oil out of the ground. >> i'm saying, they have enough money to hire private armies >> i see okay >> mercenaries >> right >> and there may not be as many -- not a lot of people willing to die for rubles. >> as we head into the new year, the conflict in ukraine is certainly a wild card in many ways >> that's what i mean. >> for many investors across the board. that, and i also hear about the relationship between the u.s. and china, as well as being sort of these bigger issues that people have to keep a very -- certainly at the ceo level, that they keep a close eye on >> look, i think when we talk about micron, you have to mention the fact that the sanctions we're putting on the chinese are going to have an impact on what they can develop. so, china's going to become less and less of a market for us. you also have to talk about how all the lam researchs, klas, the cutback to capital equipment >> that was one of the takeaways

from last night, micron. some of that upside trade regarding capital equipment and sort of the reshoring of production >> terrible. micron's trading almost at book value. the micron call was seminally bad, and i just -- i don't have a silver lining. the idea that -- look, he's innately an optimist, but he's talking about 2023 being a bad year 2023 i mean, 2023, david, it's dark here >> i was about to tweet out a chart of the stock price over micron gross margin. i mean, trough margin usually means trough stock, but do you believe it's going to go lower than the high single digits? >> i do. >> you do. >> yeah, i do. i think they're going to be very lucky to -- look, if samsung doesn't back out -- >> if samsung doesn't just stop? cut back on production >> samsung is selling things for

well below -- >> carl shared it. the analysts were almost -- it's cut in half in terms of where the margins are versus where the analysts had them. >> one thing people are going to look at is paychecks and say, wait a minute, paychecks is showing that things are slowing. that's -- you can't take -- regard it from the stock the stock is almost always wrong. first move's always down the conference call doesn't happen until the afternoon conference call always straightens things out people who traded ahead of time typically feel like they know something ahead of the call. they usually don't this is new ceo. but i just think that if you look at paychex, it's down, maybe you draw a conclusion. don't. it doesn't correlate that's a mistake micron, not a mistake. paychex, a mistake >> how about the takeaway on -- i see hp today that's about two-month low apple's lower. >> you know, i bought a nice --

i still think that apple could -- if craig jelinek can't -- if costco can't get enough apple, then apple's got a demand problem they can't meet, which is not good. you don't want people to say, well, hold on, maybe i can get a samsung. i don't think people want to say, you know what i'll go get a samsung. but if you can't get a 14, what do you give a note to your wife, hey, this is good for a 14 >> it's a big deal to change out of the apple ecosystem that's not easy to do at this point. >> who would want to do that i lost my apple phone and broke my apple watch, and the -- i lost it in the airport, and the policeman said, listen, just give me your apple watch, and i'll find your phone i said, my apple watch is broken he said, then you're out of luck and it was -- >> none of those words

>> it was a crisis time, and i called everyone in my staff, they were notified immediately, and i said, this is just -- this is an all-hands-on-deck crisis in the meantime, you can lose your wallet, you know, call jamie dimon, get the credit card stopped. >> do you really call jamie dimon when you lose your wallet? jamie, please cancel my credit cards for me >> no, i don't i don't think he would take my call either. >> i don't think so either >> you didn't have to emphasize it >> i'm sorry, but he wouldn't. >> look at nvidia. >> flnvidia is down 3.7%. >> before micron, the weakness was pc, and maybe handset, and now it's datacenter. datacenter, david, have been the one area we've been -- >> gee, i wonder why maybe it's because we have these companies cutting back on the capital spending >> it's advertising. >> because of everything else. even your metaverse friends are going to potentially not spend

quite as much on datacenter. >> he's implying that i'm friends with mark zuckerberg because i have talked to him these people talk. you know, they don't just say, oh, it's jim cramer, i don't want to speak to him he's off limits. >> i don't know why you saw my comment that way i was referring to metaverse and the fact that the spending there may slow a little bit. am i incorrect >> i think they're cutting back big on capex >> that's part of the spending for the metaverse. >> for the labs. i think metaverse is cutting back, and i think that matters tremendously to everybody. look, do you think that alphabet -- do you think that amazon is adding capacity right now? they were adding capacity when i went out there to see them, but i don't think they are now >> no, i don't think they are either >> and i think that the model is a challenge to everybody >> sorry you know who is adding capacity? >> what? >> netflix is investing

$850 million in a new jersey production hub >> isn't that something? >> $850 million in, like, fort monmouth >> i thought that was great. that was empty area. >> yep, and the piece about how they're going to crack down on password sharing >> i know. boy, is that going to change everything what is your icon? what do you call yourself? >> on netflix? >> you can always change -- it's like bowling >> i don't actually have one it's the kids and the wife the dog has his own. but not me >> i call myself, chill. >> chill >> chill like jimmy chill >> that's very nice. >> i'm chill i thought david was looking at -- you know how you have those videos that tim cook gives you. >> you mean, on this day five years ago? >> you thought i was doing that, looking at when i was young? >> i got this one today about my pet friends. >> the pet friends one always gets you and they play the music. >> i know. >> all right can we talk about amc, guys?

because -- >> look at this. >> oh. that's so cute all right. >> it's so great >> let's talk about amc now. we got two things. we got to show the amc comment and remember the shares? >> those forgot to be not as good as i thought, david >> today, they're pretty darn good >> amc is raising $110 million in equity and also retiring $100 million in debt they've got a deal with something called ontara capital, where they're selling them $110 million of aip units at an average price of 0.66 a share. take a look at the price now it's up, it's halted for, i think, volatility, but there it is it's doubled more or less so, they're doing pretty darn well the plan is to convert these units into amc common shares they also want to, by the way, reverse split amc for 1 to 10 to

remind people it was in august that theycreated these amc preferred equity units these a.p.e. units they did so in part because they would be able to issue those because remember the shareholders said, no, we're not letting you issue any more shares they flooded the market with shares >> david, this was one of the -- >> you know they did and of course, we pointed out many times, adam aron. >> he's brilliant. >> he came out of this looking good he sold, what, $42 million worth of stock, but he did say in early january of this year he was done after parting with another $7.1 million in shares that week. >> do you think "avatar" not being that good played any role? >> actually, mkm today made imax a top pick, i think. it's the second biggest imax global opening, avatar 2, and they believe people are going to wait to see it in imax, which might explain a slow build

>> is that why disney went to 85 >> it's below $86 today. >> wow i mean, walt's rolling over in his grave. >> what did you just say >> i said, walt's rolling over in his grave >> really? >> yeah, yeah. >> worst relative performance in years. >> yeah. >> didn't he get frozen? disney, no he didn't. >> "frozen" was good >> no, did he get frozen >> i like "frozen. >> like ted williams >> let it go >> cryogenic -- maybe i got the wrong guy. >> david, when the a.p.e.s came out, when he issued the a.p.e.s -- he's talking to people off stage it doesn't matter. you should be focused on me. the a.p.e. units, david, the meme people who are now completely decimated by everything they touch, they are king midas in reverse. >> they are. and it's a good point.

>> king midas in reverse they got fooled by the a.p.e. thing so bad, jane goodall was laughing >> the a.p.e.s never traded anywhere near they were supposed to trade, but it did give the company ability to raise anew capital, and they're using it to their advantage. >> who created more capital? adam aron or sam bankman-fried did you read the s.e.c. complaint? the guy was creating capital every day. he was king midas. >> adam did it legally >> oh, all right you're right no, that's a different -- >> it's an important distinction. he did it legally. it would appear that mr. bankman-fried did not. >> sam bankman-fried is lex luthor he is a master criminal and cre created money every day through alchemy, and it's extraordinary how long he got away with it it started in 2019 >> lex luthor was the greatest

criminal mastermind of our time. what are you talking about bankman-fried doesn't come close. he had a plan to hive off all of california, and he was going to -- oh, he was hackman. oh hackman. >> i'm just saying, of the people who are -- >> the best. >> of the people i've seen who are in the -- remember, he's confessed. he basically thinks if you confess, you don't go to jail. that's probably an inaccurate legal -- it's not a strategy but 2019, this guy was printing money every day. he said, let's make some more money. let's fool this guy. let's fool that guy. >> guys, it's 9:44, and we have not mentioned elon musk. i'm sorry, i can't let us get to 9:45 tesla shares are down another 3.2% by the way, that is just in keeping with the overall -- its peer group, gm, ford, both down similar amounts.

lucid, rivian down even more new lows you're going to see new lows all the time here at this point. new multiyear lows on the stock. >> now you know that >> no, no. every time it gets lower is a new low. >> it's -- it's circular >> today, it's reports about doubling the discount on the 3 and the y. >> i thought it was down today because it may not be doing as well remember, the ev picture is going to get very big when ford makes 350,000 units a month >> are estimates going to come down for tesla at this point, and dom did this yesterday, it was over 200 times earnings, now it's closer to 25 times. we had gary black on last week, a holder who pointed out it's trading at 22 times '23 numbers and could see the stock, he thinks, at 800 by '26 based on its 20 bucks in earnings >> this is the dave tepper scenario where there are a lot of companies that are trading at very high multiples to sales, lets alone earnings, and they're all too high

i just -- i wish dave would come on and say, there's parts of the s&p that are already inexpensive, but that's not -- he doesn't do that.. >> one last thing on tesla did you see morgan stanley questioning the viability of evs overall? given the capital destruction in tesla? >> i had -- i had patty poppy on yesterday, and she's the pc -- >> pg&e ceo. >> gigantic utility company. she said that's completely untrue >> we have dan loeb up that's the wrong thing >> he basically said, is it time to start considering alternatives to evs? are we sure batteries are the only path or ultimate path to decarbonizing transport? >> what's the new one he's got >> he points out porsche investing in something calls e-fuels. he thinks that's something to watch. >> shouldn't he think through that before he puts it in print?

i don't know >> pg&e is offering -- pg&e is offering supply contracts where if you put into the grid, you get money back i'm sorry, that's just fantastic. so i think ev demand is going to increase that's a great break in your electric bill. >> there is a question still of charging stations being ubiquitous enough to support the growing level of evs in the company. >> patty poppy is doing it at a giant utility in california. she's saying, you get a great break if you buy f-150, send power into the grid. let's get to jonas on that >> if you missed pg&e with jim last night on "mad," here's what she said >> it's a game-changer the additional demand for electricity from evs is probably one of the greatest things that will happen to the grid. people say to me, oh, is the grid ready not only is the grid ready, the grid needs evs those evs will be a resource to

the grid and create a low-cost, clean energy resource. it's a total game-changer, and we're at the forefront at pg&e >> she's so good it was just really breathtaking. the interview started by me saying, you were a boilermaker, because she went to purdue, and i said, don't you think that's odd? she said, i met you at a bar in 2015, and you didn't even remember my sister and i. i was steering the interview toward the electric grid but it got -- >> it went off kilt aer a littl bit. >> off the rails boy >> like this show every day. >> i think what she said is so much more important than what an analyst, who is just -- actually, an analyst -- i'm not saying he's erratic. i'm just saying, he's erratic. >> provocative >> provocative >> jonas yeah >> you could have helped me. >> i'm sorry carl helped. >> quick reminder, you can get in on the cnbc investing club with jim sign up and find out more at

cnbc.com or use the qr code on your screen. it takes you right there as we go to break, we talked about that revision to q3 gdp. final number 3.2% from a prior 2.9% bonds did make a move. back in a minute

♪ ♪ live shot of the federal courthouse in manhattan today. ftx sam bankman-fried now back in the united states after being extradited from the bahamas last night. we are expecting an arraignment as early as today as two top associates pled guilty and are now cooperating with federal prosecutors. we're back after a break

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switch today. let's get to jim and stock trading. >> lam research went up a great deal when we learned we had the semiconductor bill and the chips act. they also are a big supplier to micron and they're the biggest -- they're the biggest pain points and the stock's down 30 and the stock is correctly

down 30. it is bad news it's bad news for them because they're going to keep -- micron will keep cutting back and cutting back i say that the wages in silicon valley are coming down >> in silicon valley, yeah i did see a statistic that a number of tech companies of layoffs of any sort have reached 1,000. that includes small businesses the love affair with enterprise software sector is finished. there's no more love affair -- nothing. those companies, you start one of those now nothing >> there are a lot of private enterprise software companies. >> they may or they're going to need capital at some point >> there's a lot of consolidation coming or a lot of elimination. >> speaking of payrolls, what's on tonight >> we have paychex and smuckers. john gibson, brand-new ceo of

paychex. we'll see how small and medium-sized businesses are doing. look, the epicenter of the layoffs is where it's never been before we are hard pressed to find if you have cleveland cliffs saying listen, we'll raise the price of steel and at the same time, you have just tremendous layoffs that are coming in all sorts of capital and david, believe me, it's not just meta >> it's not just meta. okay, jim. i believe you. thank you. thank you for that >> we'll see you tonight "mad money." 6:00 p.m. >> it is what it is, david >> it is what it is. >> we are back to 3830 don't go anywhere.

>> welcome back to "squawk on the street." rick santelli live at cme hq with breaking news leading economic indicators for the month of november expected to bedown half of 1% is down double that. it's down 1% and what's worse, this is the ninth -- the ninth consecutive negative number in a row and ten out of 11 months so far, that was november have been negative

haven't had a run-in leading economic indicators that negative since the credit crisis of 2008. we do see that yields are up just a smidge on the entire curve and of course, we will continue to monitor the fact that despite all of the issues regarding fed guidance we still see buying pressure keeping rates a bit low, but not as low as they were just a couple of weeks ago. carl, back to you. >> thank you very much rick santelli. good thursday morning, everybody. i'm carl quintanilla with david faber, morgan brennan has the week off some weak happens at the open and the s&p down 50 points and the s&p sector is red as we got some warmer than expected gdp revisions and some cautious commentary from david tepper. >> and we are also 30 minutes into the trading session you saw the broader market and we'll give you a few stocks you're keeping an eye on this after the company reported

a wider than expected quarterly loss margins as well, why hurt by declining demand micron announcing it will cut about 10% of its workforce opinion another name that is down in the early trade is carmax you may be able to surmise why quarterly profit and revenue coming in short of estimates and that stock off about 8% right now. finally, there's amc the shares are plunging this after they announced 110 million capital raise and they posed a one to ten for a stock split and we'll get into this a bit more later and shares of its preferred, eight shares are up sharply and they are selling those in part to help pay down debt and exchange for debt and the like, carl, but overall, of course, you can see the stock has been in decline in part because of concerns because of the fundamentals of the company. let's get the latest around ftx. sam bankman-fried back on u.s.

soil and facing criminal charges following the collapse of ftx. our mackenzie sigaos has more. >> he will appear in new york as early as this morning. bankman-fried touching down on u.s. soil. bankman-fry's mother was seen arriving to court. the ftx founder will enter a plea on eight criminal charges and we'll find out whether they're granting bankman-fried bail bankman-fry's crypto empire was released on bail after cutting deals. gary wang and one of the co-founders of ftx pleaded guilty to criminal charges that they helped orchestrate a

years-long fraud with ftx. they are cooperating with ongoing federal investigations into the collapse of the exchange and sam bankman-fried the charges were released last night at the same time that bankman-fried was en route from the bahamas to new york where he faces changes from the same prosecutors working with ellison and wang wang created a software back door in ftx's back door which allowed alameda to divert customer funds wang and ellison's plea deals did not stop them from pursuing them for tax violations. it might seem like a small carveout and it could be a way for prosecutors to keep things open if further evidence emerges. david, back to you >> mackenzie, thank you. >> let's continue this conversation for that let's bring in akreman, the district attorney for the southern district of new york. that for joining us, nick.

>> sure. >> let's start with the obvious which is -- they've got. are you all right, there are you driving? >> i'm fine. i'm fine don't worry about me i'm in good shape. things get stranger and stranger where we do interviews these days >> that's right. that's right >> as we talked to you the cooperating witnesses here how important is that for the case that's being made by the u.s. government? >> extremely important because what it means is they've got two witnesses. they most likely had those two witnesses before they brought down the indictment. i mean, i think what happened is they turned these two insiders and wound up using that testimony to bring the indictment that we have against sam bankman-fried. so they've got pretty good evidence right now yeah >> go ahead. continue i'm sorry. >> they have pretty good evidence. >> they have very good evidence

now. two insiders that presumably will be corroborated by all sorts of documents that are within the company and it seems to me that anybody else who may have been involveded in this three-year scheme has got a lot to be concerned about right now because it's obvious that the government will be looking at everybody involved and if there's likely to be a superseding indictment at some point. >> are you surprised are you surprised, nick, at which the government was able to move here and was able to get the cooperation of what seems to be two very important people >> yes this was a very fast move by the government no question about it they really moved quickly. this -- to get the two top insiders to basically cooperate is a huge, huge coup for the government, and i think it's

just going to make the whole house of cards fall pretty quickly. other people are going to realize that to avoid a long jail sentence they'll have to cooperate and give up other people >> does that mean that you expect a guilty plea from him today? >> i don't know if we'll get a builty plea today, but i would think he'd be looking to make a deal as quickly as possible. don't forget, he just got back to the u.s the idea that he'll be making a guilty plea that quickly is probably asking a bit much, but i would think that this is going to happen very quickly in the sense that i think they'll wrap this case up without too much trouble is my sense. particularly now if they have the evidence once you have an insider like that it makes a huge, huge difference in terms of the quality of the evidence that you

have look, there's been speculation, too, about sam bankman-fried's parents and these insiders are pretty savvy as to what they did and what their role was in this entire scheme. i'm sure those are some of the first questions they'll have for people. >> i wonder what you're thinking regarding some of these regulatory turf wars between the sec and the cftc and between u.s. authorities and authorities and other countries. who will be the marshal for this space in case we get further examples of fraud or abuse in the months to come >> i think what you will see is the southern district which is the motivating force here that has the witnesses and has the indictment, but they're going to be coordinating this, with first of all, all of the agencies that are in the united states and they'll be coordinating it with foreign agencies, as well.

that's normally what happens in these types of cases >> finally, nick -- i mean, i know it's speculation, but what kind of a deal do you think the government might be offering to these two cooperating witnesses? >> oh, i think they have to plead guilty to at least a five or ten-year felony and the deal will be that they will basically tell the sentencing judge the extent of their cooperation. the more they cooperate the better the deal in ultimate sentencing they are motivated to tell the truth and basically lay out whatever it is they know about whomever they know >> nick, appreciate your time. safe driving >> okay. thank you. no problem >> bye-bye >> all right as we head to break, here's our road map for the rest of the hour including stocks that are down in early trading.

this is -- we heard on cnbc from david tepper saying he is leaning short on the equity markets. >> tesla under pressure again, now down 30% since the beginning of the month several firms reiterating the buy rating and speaking of tesla. arc in arkk investments, and big owsh is still ahead don't go anywhere. ♪ a cyber-attack can grind everything to a halt. cisco security keeps your company moving forward. because if it's connected, it's protected. cisco.

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as the fed continues to cool the labor market, it may have been overstated by a million jobs let's bring in senior economics reporter steve liesman and find out what's really going on, steve? >> thanks. talk about a story not made for television, but i have to tell you about the new data series by the philly fed and it create political controversy by estimating that may have been overstated by a million jobs in the second quarter the philly had early benchmark revisions with the insurance payments designed to give an early payroll revisionses on state and it calculateses a national kachange by quarter an it can show turning points in the economy especially by state. they warn, though, that the national results which created all of the controversy can help

show directions of revisions and turning point and it shouldn't compare by the bls, and let's look at what they found. in the fourth quarter of 2021, they think payrolls grew by 7% more than the 5.3% reported by the bls and go into the first quarter and they believe it grew by 3.7% and less than the bls and then you get to the controversial second quarter and the philly fed said it was a goose egg compared to 2.8% and that's 10,000 jobs versus a million jobs and over the three-quarters and the difference is zero percentage points in total and less job growth senator rick scott, he called this data a cover up and sent a letter to the biden administration demanding answers and economists said it is nothing of the kind and just a different set of data that might not be showing weakness that hasn't shown up in the payroll report they point out that in the second quarter, as today, you've

had high wage growth and low jobless claims and low unemployment rate. all of the data points against this weakness and how do we know this and data eventually will be used to revise their number for the whole year it could show a new trend and only if it's confirmed in another quarter. we won't, unfortunately, guys know if they're right until early 2024, and carl, if this doesn't prove the need for the bls to use better data more quickly. i don't know what does >> steve, pretty fascinating, though, steve liesman this morning, thank you >> david tepper weigheded in on the markets earlier on squawk. >> just because i tend to believe as a base case when these different central banks and other government officials tell me what they're going to do, it has worked for me over time and it has because i talked

about it and it was a great thing on the one side and a real big opportunity in 2010 with qe and i said to you, what will go up everything now it will be just difficult -- just difficult for things to go up right now >> joining us this morning to break it all down, former pimco chief economist paul mcculley at post nine, asset management chief global strategist david kelley paul, let me begin with you because part of tepper's point is that the fed gets criticized for not seeing, quote, unquote, high-frequency ata do you think there is anything about the radar that is suspect? >> i thought david's comments were thoughtful, and i also thought they were very tactical in the sense that the fed has made very, very clear that they want to see a weakening labor

market they're focused on servers as inflation and that's labor and they haven't seen it yet, so therefore, they are hawkish which puts david into a situation of wanting to be tactically risk averse and i don't think that's wrong, but fundamentally, where my perspective is coming from is that the fed is going to be successful, and i think that's why the yield curve is inverted to the rate and strategically speaking that the fed's going to be successful. >> what do you do with that argument, david, when tepper is seeing you've got to believe him. they're telling you what they're going to do. >> they are telling us what they're going to do, and i personally think the strategy is that says we'll raise rates more and in 2024 we'll cut them is exactly the right strategy to talk with and we'll add to the amplitude of the business cycle. the economy is slowing down and

the leading index economic indicator is telling us something. inflation will fade anyway and we're down in cpi by next december there's no reason for the federal reserve to get it to come down any faster >> do you see things differently than tepper in terms of the opportunity even if you don't necessarily agree to a certain extent in the early part of next year in rates. >> there is plenty of opportunity here and the question is time at some point the federal reserve will realize they've overdone this because the economy is slowing down more than they thought and inflation is coming down by march the cpi will be down by 4.5% year over year so it will be coming down fast and the fed will eventually pivot here how markets behave between now and then it's difficult to predict, but i wouldn't want to wait too long because you can sort of see this one coming. >> paul, do you agree with that? >> yeah. david kelley and i are pretty much in agreement.

the fed's in the right neighborhood they're restricting and they'll go deeper into restricting, but from a strategic perspective, it says you should look at disinflation and a pivot down the road and start discounting that into long duration assets now. >> there's been some discussion of rotation of votes bullard, mister, george will exit and they'll bring in goolsbee who are seen to be more dovish or more centrist. do you think that will be materiel to decisions? >> i was struck by the fact that pretty much every member of the federal open market committee increased their terminal rate in december relative to december. it is almost like there's a quiet memo going out by the way, the messages will be tighter. you better push up your forecast and it didn't seem as independent as it should be and

for whatever reason they're in lockstep that we'll be ultra tight for right now because i think they're trying to maneuver long rates up because the data is just not going to be with them >> i'm curious your thoughts and the to-me bill that would reduce them from 12 to 5 and the senate confirmed. do you see directionally more political pressure on the fed or maneuvering their mandate from congress >> on the first question, i think the changeover in the voting will not have a materiel impact as david was saying and given the fact where they are restricting at the margin, the fed is going to be slowing and stopping so i think it will contribute to that with respect to senator toomey's bill, it's structural in nature,

and i think it is thoughtful from the standpoint that is very hard to defend exactly how we have the regional setup right now given the fact that it was s set up in 1913 so it's always been a tricky issue to think in terms of changing that format if it ain't broke, don't fix it, but i think fundamentally the whole issue of thinking about how to make the fed more democratically representative is not a bad idea >> hey, david. you are the chief global strategist so you know, tepper, back to him. he seemed a little more concerned by le guard, terming her a grizzly bear do you think the ecb diverges from the fed or how do you see it in terms of europe? >> i think they would stay tighter longer and it's possible that inflation in europe will turn out to be stickier. they have much more powerful

unions compared to here where wage growth will slow it could be that we started and europe will stay stronger for longer and are that could mean the lower dollar and the dollar is way, way, way, too high and that could be one of the things that trigger long lasting decline. >> oh, absolutely. in real terms it's almost at the highest level in 40 years and when you pair that with the fact of international equities in terms of valuations, that there is a very important long term message there. >> paul, i'll close with you and let you respond to that, as well how you characterize le guard's color at least these last couple of meetings. >> >> i think she's hawkish. they are following the fed and david is right and they will stay tighter for longer than the fed and it will feedback in to a weaker dollar which is part of the soft landing story for the

united states. i guess you're getting an amen from me relative to david's comments right now >> appreciate you both thank you very much. >> after the break, the nfl reaches a multi-year deal with youtube for the sunday ticket package. we'll give you those details first though, the shares of alphabet and the owner of youtube and palantir, saying the sell-off in the shares which by the way, continues today is overdone 'rba itwo.

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"puss in boots" has been nominated for best animated movie of the year. ha! ha! and it takes the "shrek" franchise to exciting new places. i am on my last life. it will strike a chord with movie goers of all ages. when you only have one life, that's what makes it special. rated pg. only in theaters. the nfl announcing a deal that was reported on yesterday by any number of news outlets including our own, signing is up youtube, alphabet's youtube for a deal for its sunday ticket roger goodell, the commissioner of the nfl saying the strategic partnership is yet another example of us looking toward the future and building the next generation of nfl fans of course, youtube is a giant in streaming. most of that content, though, created by the users themselves.

in this case, they'll be paying, perhaps, carl what may be $2 billion a year for the right to air those games and obviously, apple has played in baseball we know amazon has thursday night football, and it does point to these mega tech companies getting deeply involved and bringing sports programming to their users >> still thinking about cramer's comments this morning. the interactivity and the nature of youtube providing opportunities for viewers maybe in ways that direct could never have offered, right? >> without a doubt >> obviously, directv and its shrinking number of users put it in a position where it couldn't compete here the question is would an apple compete. they chose not to and they were part of the process, as well and is does raise the question, what is it going to cost, the likes of cbs, our own parent company through nbc and others and espn have to compete for these, as

well >> the journal says residential rights are seven years seven years is what i'll go with, as well although yesterday many did have the price tag as higher than it actually understanded up being. >> interesting, too, to hear pete's comments earlier in the summer about being more effective, or efficient, i should say on a cost basis and willing to pay up for this one, and as the journal puts it, a willingness to spend top dollar for live sports content. live sports has been key to the streaming world and it's been one of the keys in bringing the bundle together. some would argue sports news and at the same time, making the costs so high that many people will opt out if they're not sports fans. >> huge implications for media ka kathie woods arkk investment

>> that's across the total funds complex according to morningstar data many have turned more specifically to the flagship fund there which is the arkk innovation fund, ticker arkk and it's been a laggard versus the s&p 500 and even against the arkk innovation etf down two-thirds of its value versus one third for the invesco qqq trust which measures the nasdaq 100. if you take a look at the ark innovation, it hit a peak since early 2021 according to data compiled by wide charts on total assets for this particular fund, at the peak you're talking about close to the$28 billion for this funda of this week it's $26 million. the market depreciation for assets along with total net flows that contributeses to that

decline and still putting those numbers in perspective gives you an idea of how far we've come lower for the ark etf. you mentioned streaming and streaming is still a big part of the portfolio over at the ark innovation etf roku is one of the top holdings and the top three holdings are interesting because they always get a lot of attention and down 63% over the course of the year to date period and exact sciences has moved up to the second most weighted stock in the ark innovation etf and lost a third of its value exact sciences, by the way, a diagnostics company responsible for the cologuard product and those three stocks represent 25% of the overall ark innovation etf. so those three are the ones to watch, carl. back over to you >> appreciate that, dominic chu. >> the s&p falling below a key

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ukrainian president vol ol mid zelenskyy addressing congress, and our kayla taush h tausche has more for us. >> president zelenskyy delivering an impassioned address where they have tens of millions of additional aid zelenskyy making this direct appeal to skeptics who said they won't send a blank check. >> your money is not charity it is an investment in the global security and democracy

that we handle in the most responsible way. >> in congress and at the white house earlier zelenskyy expressing a deep gratitude for the united states for funding and equipping his country saying that's why ukraine is still in his words, alive and kicking and in his trademark humor he said more aid is still needed >> we have artillery, yes. thank you. we have it -- is it enough honestly, not really [ laughter ] >> zelenskyy also asked for jets and tanks and said his people will train and operate them just like they plan to do with the patriot missile systems which have been spent and so far in the u.s., there is still deep reluctance by officials to provide reaper drones which could be seen as widening the war. zelenskyy and president biden

discussed diplomacy, but had no sense of the war's endgame though zelenskyy middle next year will be a turning point back to you. >> kayla, thank you for that >> kayla tausche this morning. let's turn back to the broader markets as we are seeing severe telling pressure today testing here in a few moments by a few points of that level art cashin joins us on the cnbc news line. you did say last week on this show that 3900 would be important. clearly, that's been lost for now. >> yeah. this is a disturbing morning call the 3800 level would be important. we got a bit of a warning signal late yesterday when the vix traded below 20. that's a sign of extreme complacency and throughout the year 2022 whenever the vix created down around that level it was putin to take money off the table when it would normally

trade the vix on a day by day basis and that was a warning signal and then on your tv station we had david tepper this morning who delivereded that blow to the santa claus rally and then that was followed by your leading economic indicators which were not only weaker, but showed that the only indicator that was showing any real strength was stock prices and that was questionable to begin with so the one-two combination this morning, i had it down test at a very important 3800 level in the s&p. we may have to put santa claus' face on a milk carton if nthat happens. >> i was afraid you would say that we keep bringing up 2018 where you had to wait for the last four sessions for santa to arrive and in that case you had

the s&p up 7% in four days >> yeah. that was an interesting extreme. i'd love to see it happen again. >> even though it doesn't have a very long history, there are some folks that think that you get a little bit of a late rally on festive us eve my calendar i correct and we'll have to do some magic to pull things out and i'm sure that's one of david faber's favorites if festivus eve. >> i know you're steeped in history. >> while i'm talking i might ask you a question and i'm curious of what you thought of tepper and his view and other central banks and their plans and extending to the fact that he

does not seem conductive on our equity markets >> yeah, no. it was -- and i think he realized it was a hot potato because becky had to push him a little bit he kept saying, you know, i'm not like long term investor. i'm a hedge fund guy and finally, she pushed him a little bit about which side would he be leaning to, and i would be leaning toward the short side and for very good reasons. it's a point about christine lagarde is well taken, but i don't know why her crystal ball web a great deal clearer than anybody else's, but she did make that extension that they likely would be raising several times in the future and -- but david, we put the cloud over the festivus eve for sure and 3800

will be important. >> art, you mentioned lei down nine straight months we haven't seen that since the summer of '07 into march of '09. i wonder, can we argue that we've now crossed into a period where bad news is bad news and no longer a sign that the fed will pivot sooner? >> well, yeah. i think what's happened is and again, not to dwell on poor mr. tepper, not that he's poor in any economic sense, but he's getting blamed for everything today. the reason that bad news was getting to be good news was people thought the fed was on the edge of certainly decelerating and maybe even pausing. that is questionable now people are talking about powell needing it perhaps 1 1/2 quarters of good data, to even get close to it. so the fed's back at center

stage. david tepper is right about central banks and that's what's causing us a lot of grief. the lei, as i said, was another factor along with tepper so cross your fingers and the other thing, to spread out one last point, the fact that this bitcoin deal and spf's key lieutenants may be turning state's evidence, that rate has questioned as to whether sbf can hand anybody up internally, so he may have to try to make a deal by singing about people throughout the cryptocurrency world and that's another concern out there, but 3800 is my primary concern. >> yeah. that's a good point. at bitcoin at 16.6

a lot to talk about, but happy holidays if i don't talk to you. >> happy festivus at the very least. >> check out the biggest laggards for mdx and has denily wedfiteip out wednesday's gains and then some. we're back in two.

well, let's lots to discuss about elon musk and a lot of us talking about that stock and tesla down another 5.7%. you can just see what that has meant, think, in terms market of late the market move of late. it's also trading as a proxy, while musk says twitter will, in fact, be okay, our next guest says writing for time that the media is making the same mistakes with musk that it did

with trump joining us is robert mcnamee and frequent contributor at cnbc always good to have you for a conversation what do you mean the media, and that includes us sitting at this desk is making the same mistake? >> think about trump as having been a person who put spectacle first and foremost if you think about the incentives of the media industry grabbing attention is what drives revenues for media and the thing that does it best is stuff that's toxic, things that are inflammatory and get people's emotions going. trump was a master at that, and even though media had a lot of evidence that the real issues with trump, they chose to focus on the spectacle musk has taken that playbook and is running precisely the same thing and he's not running for president and he's not eligible to run for president and the point that i was trying to make on this is that musk is, in

fact, a dangerous person because he is using twitter to give voice to extreme viewpoints like white supremacy and anti-semitic people who frankly, given twitter's centrality both to media and politics is a really unfortunate thing, and i think that the best thing media can do right now would be to deprive elon musk of attention i think candidly, if you're a shareholder of tesla, that would be totally in your interest because what you really want is the focus to go back on the real business, the one that public shareholders own and to get away from this thing that's really become a soap opera in which elon musk is >> right from my perspective, roger, the reason we talk about elon musk is because he is the most consequential businessman on the

planet he runs tesla, or at least he did which is you can argue one of the most important companies that we have and certainly has condition so much to change the landscape in terms of put people drive. he runs spacex which is putting up rockets every six days. he runs neurolink. he is unique and therefore deserving of our attention not to mention, think, certainly sitting here where we talk about stocks all day, his actions do have consequences in the market. >> david, i think that's points are very well taken and in the piece the thing i really get at is the parent company of cnbc, nbc, suspended one of its really amazing journalists, ben collins, in a way that gave literally everyone the impression that they were essentially bowing to pressure

related to his coverage of musk which by any objective standard was not only reasonable. it was really, really good, and to my mind the point i was trying to put out is that this is a warning shot. if you're cnbc, i totally get that musk is central to all these public companies, but the way that musk is being covered because he's being covered in a lot of places besides cnbc and he's being covered very much as an entertainment product and in my mind, we have to pay attention to the fact that in our democracy we need journalism to stand up to power we need journalism to point out when things are wrong and what worries me is that we didn't learn anything from the experience with trump. we're making the same mistake on musk and the next time someone in the political arena comes along who uses spectacle in lieu

of policy that that is something that we'll get wrong this is an opinion piece and people are entirely entitled to disagree with it, but the debate is an important one because it's super important, if you think back to the history of the united states, whether it's the pentagon papers or watergate, there have been times in the past that journalistic organizations understood the importance of standing up to power and doing the right thing for their audience and i do believe that journalism's incentives today are much more tangled than they were then and it's much harder for journalism to resist and much more important that it do so. >> roger there was a time when we bring you on and we talk about core facebook being the locust of social media information exchanging and that had its own effects and i wonder a year from now do you think we'll consider twitter the engine of information in the newsroom sense the way we do today? >> don't -- i think that there's

a very real chance that it won't be as important a year from now. our mutual friend casey newton has put that as one of his predictions for 2023 and i certainly hope that that is true i think that our dialogue would be much healthier if we moved away from centralized communication systems like facebook, instagram and twitter to ones that are more distributed like mastodon. they won't give us that extraordinary reach that you get on the centralized platforms and it will not give you the tremendous dopamine hit that you get from starting a massive fight online, but i think it will be much healthier for our democracy and at the moment that's a very important thing and we all saw president zelenskyy's speech last night and you think about ukraine, which is a country which in many ways is the eastern european equivalent of california it was a technology center and

very advanced and people were well-educated and everything was going great and everything changes overnight and they're fighting for their lives and fighting for their democracy and i think what zelenskyy gave us was an alert something to think about, because there's nothing that guarantees that democracy will survive and freedoms survive and there are threats to ours and all i'm doing is call attention to that because it happens that the source of the threat is using the platforms that i used to invest in in order to win its political arguments. >> roger, always appreciate your time with us thank you. >> you bet take care. >> we have some very sad news to share here a longtime friend of this network, in fact, also i would argue one of the more important voices in our capital markets,

scott minerd died yesterday during his workout gulen heim released a statement. i've known scott for 30 years. scott was a key innovator and thought leader who was instrumental in building guggenheim investments into the global business it is today. he will be greatly missed by all. my deepest condolences are with his husband, family and loved ones, and i think we share those condolences, as well he will be deeply missed very sad news.

>> coming up on tech check this morning a deep dive on semis micron obviously moving lower on the weak results and the margin guidance taking the wind out of semis and capital equipment. as for the markets, man, can 3800 hold? veght points above right now on a ry busy thursday we're back in a moment

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welcome back to "squawk on the street." let's get a check on the market, down 1.8%. bob pisani is here to fill us in on what is going on. >> i know tepper got headlines and this is about micron

they'll be re-rating the analyst estimates and they'll be re-rated for 2023 and the question as 2024 and you can take a look at what's going on with the sectors and it's the semiconductors that are weakest and it's ark, dow jones internet and those are the weakest sectors right now. micron is at a new low and it's essentially at a two-year low and it's essentially sitting right at a two-year low and the key thing is that everything was negative here and weak outlook, lower demand and significant oversupply, right across the board. 10% staff cuts and suspending the buybackses and keeping the dividend, thank heavens and you know, david, the analysts are classic glass half full guys and they're always looking for troughs. they love talking about troughs. forget it. not a single one and the wells fargo headline, it's ugly and that was the headline. deutsche bank, and the losses amounts over the cycle goes on and on and on. you see what this is doing to

the semiconductor capital equipment stocks and their prices are drowned dramatically today and there's kla, the biggest one out there. they're going to be turning down the estimates. 4% for tech in 2023 and now it's going to be 2-1. flat demand destruction and what that will mean. >> thank you >> always a pleasure >> always a pleasure to be with you, as well that will do it for "squawk on the street." "tech check" starts right now. >> good thursday morning i'm carl quintanilla with john fort t t at the new york stock exchange and the nasdaq's down more than 2% and we'll dig into the ugly end of the year. sam bankman-fried extradited from the bahamas as his former colleagues plead guilty to criminal charges and we'll fill you in on the crypto fallout chips take a dive. micron fli