hearings we'll fix everything yeah we have that going for us. it is tuesday, january 24th, 2023 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen andrew is off today. we're here we're ready to go. we are looking at the u.s. equities at this hour. you will see red arrows. these are modest declines. dow futures down 46. nasdaq off 31. the s&p off 7. this comes after big gains yesterday. you are talking about back-to-back gains for the major

averages if you are looking at what was driving yesterday, the cetf whic with was up on monday. the second positive day in a row the etf which is up 20% in the last month a lot of optimism there. it worked into technology shares you saw the run-up in the nasdaq late in the session. energy prices high across the board. wti at the highest since december 15th. this morning at $81.60 that is probably a point that consumers should pay attention to because you could see that trickle the into higher gas prices as well if you are looking at brent, it is above $88 a barrel. natural gas is down 3.50 the treasury market here

with the 4.219 for the 2-year treasury bitcoin? >> it looks volatile it has been 22,700 we will talk to katie stockton about that later from what i can glean, she would call herself neutral we are getting near over-bought. you can make a case for 25 and change i don't know what it means about her 14,000 >> she was pessimistic >> it is all tied together s&p is 4,000 4,000. remember my bet? 3,600 to 3,400 we we have done nothing the vix is back to 20. i was looking at the vix one, two, three, four. four times it has gone up to 35

in the last year the vix has gone up with market pricing. you see nothing happened since october. we have been in this trading range? >> we're up for the year. >> the dpow off 6% from the hig. the s&p is 13% off we really made progress if you take stock of where things have come >> the vix >> higher prices >> we're obsessed with a selling -- i always wondered instead like this, can it be spread out it will be 13 months where we have been really not made any headway. that's like a bear market. it has been a bear market in the nasdaq >> a slog. >> slog. nasdaq was strong yesterday.

if any of the three will respond to the idea that the fed gets a little nicer to us -- >> it was stocks like intel and tesla that were sharply higher yesterday. we will get an idea for the last three months. then also the outlook is always important because it is earnings season in full swing. we did the money and banks and morgan stanley and goldman in davos. now we get more industrial we will see how the actual economy is doing this hour, reports from johnson & johnson and 3m and general electric, verizon and travelers and lockheed martin among the names in the 7:00 hour after the bell, microsoft and

then we talk to johnson & johnson cfo joseph wolk. that is in 45 minutes. at 7:30 a.m., verizon ceo hans vestberg he is in town and he will be on set. the u.s. justice department is preparing to sue google the parent company alphabet by the end of the week. the lawsuit will target google's dominance in the online ad market the filing follows reports that the justice department rejected the google settlement last summer layoffs of 12,000 people going through and the cfo on the town hall over how the layoffs were done and who are they were

targeted i think they have several thousand managers. they said they did not tell all of the managers as they were planning for it. that has people wondering if they are doing cuts in the best way. >> do they have refriger -- kegarators silicon valley is a different place. >> it's not quite as perky as it used to be >> wine? we have no wine here >> we do have a coffee machine >> we do whine, but we don't have wine and cheese. amazon launching a prescription plan. it will address high blood

appr pressure and diabetes and male pattern baldness customers enrolled in medicare or medicaid are not eligible amazon says the average prime member will save $100 a year amazon shares look like any other nasdaq stock gemini is laying off 10% of the work force in the latest round of job cuts. the firm previously cut the head count by 10% in june and 7% in july the company is joining crypto firms announcing or deepening staff cuts in the months after the collapse of ftx. this thursday, we get the first read on the fourth quarter gdp. steve liesman is joining us with the economic growth of the last quarter. steve, good morning. >> good morning, becky after a surprisingly strong second half of 2022, u.s. gdp growth is set to slow to a crawl

and turn negative for one quarter this year amid slowly declining inflation that nevertheless is above the fed target the forecast gdp growth on thursday of 2.6% it is above trend. the only good news we have here is don't get used to it. the forecast sees growth barely above zero for the next four quarters it falls below zero in the second quarter only a yearly basis forecast is three lack luster years in a row. gdp growth at 1.4% in 2022 is a half percent this year and bounce back in 2024 as the u.s. economy slow was the fed rate hikes and doesn't regain much in 2024 the fed seems slowly to be achieving the goal of 2% inflation with the core pce index dropping from 5% in 2022 to just above 2% next year

several fed officials have said they don't see 2% inflation until 2025 as for recession, well, it is almost academic at this point. the numbers are so close to zero and you could imagine the breeze from the single the lousy data point tips the economy in contraction. the handful of forecasters see two negative quarters of growth. others could be convinced easily the economy will teeter on the edge of recession all year joe, i don't remember it ever doing this and no whole numbers for the quarter or year. >> i like -- we got to do what we have to do with predictions i don't know what they are worth. those are interesting numbers. if there is a standard deviation of what happens. it is interesting. it got me think going, steve, when you do sort of live beyond your means, for lack of a better

term, there are consequences you have hangovers when you party too much we did spend a lot of money. when you spend a lot of money, economists will tell you there will be inflation. when you do get inflation, economists will tell you interest rates will go up. the reason you don't just spend all the time is because future gdp gets impacted when interest rates go up from the spending. it seems like you described what has happened over the last couple years as a result, we're going to have gdp slower than it should be we shouldn't spend as much as we with want all the time we shouldn't it comes back to haunt us. peopleon the low end are dealing with inflation and next you deal with is unemployment. just no way to run an economy. >> just to be clear, you are

talking generically. not personal experience of partying too much. i want to be clear about that. >> you know where i went to school not the second one the first one. boulder. in the '70s. you went to 100 dead concerts. my last four years are not equal to that. >> yet, joe, here i am i want to add to your comment about the fiscal side which is on the monetary policy side. also a cautionary tale of being too wide open for too long here and payback is a you know what when it comes to the fed having to be restraining this economy for as long as it does to get back down to the 2% level. >> those gdp numbers suck, steve. they suck. let's call it. >> i hope they're wrong.

>> i do, too >> steve, i looked at it they are not predicting a recession coming through maybe they could be convinced. the market is anticipating recession. >> it doesn't matter may as well be >> don't lose the danger here. this is a reason why you don't want to grow slowly. any modest shock could really trip the economy into recession. it's why you want a buffer or grow 1% or 2%. you need a shock the economy can absorb with the numbers like those, there is nothing for the economy to absorb. >> you wonder why they are using the blunt industry we don't want to keep it going as is. this is what you end up with liesman, thanks. coming up, the market is putting together back-to-back gains. nasdaq leading 2% on monday. all of the leading averages in the green. will the rally keep going? that discussion is next. and ticketmaster on the hot

seat with the taylor swift ticket fiasco getting government attention. more on that coming up more on that coming up you ar nothing, it really is something.e watchin as an expedia member, you can save up to 30% k here on cnbc when you add a hotel to your flight. so you can have a bit more money, to do even less. bloo

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trending lower than they were 15 minutes ago. you see the dow off close to 75 points nasdaq futures down 50 s&p futures off 11 this comes after back-to-back gains for all three average s. let's talk market it'ss with mi duff mimi, we are in the midst of the earnings season. you are convinced it will get tougher for companies to put up good numbers this season >> i think it is fair to say last year companies were able to pass along the price increases that we saw and then some. this year, we think the companies will be more under pressure we're seeing layoffs we saw big electric carmaker cut prices we do see some pressure points that will be what we are watching most closely with the

margins. >> malcolm, that is a story i thought was baked into the market we have seen decent gains in the major averages since is this a situation where the news is baked in or is this a situation where people are looking past that to think the fed is going to ease >> i think it depends which sector you are looking at. to mimi's point, we have not seen wage inflation baked into the numbers we know which has to be there if you think about retailers who don't have a ton of pricing power any more like they did the last two or three years. they are bringing down prices to get you and i to come back in the stores to shop at the same time, the workers are demanding more and more in take home pay. those margins will definitely get compressed that retailers will announce through the year i really anticipate in the

retail sector specifically wage inflation to play a big role if you look at something like software services with a lot more operating leverage, they don't care how much it costs to put a worker in a seat one by one and they care because they are laying off workers in healthcare, software, places like that, i think we see significant gains because they have a decent amount of operating leverage and pricing power. >> and layoffs play into that as well it is sad headlines for people involved, but as a shareholder, that is something you should embrace. >> i don't know i would say embrace. we are not giving the layoffs as much due as they deserve right now, folks are saying that is in the tech sector. it is a white collar layoff. it doesn't matter as much. the reality is these are still hundreds of thousands of jobs. layoffs are 150,000 so far since

late 2021. those layoffs could spillover into other sectors where folks are not easily hirable or folks are not getting generous severance packages we should not brush it off saying poor tech worker making hundreds of thousands of dollars. it could go beyond the finance sector and health care sector. >> mimi, you have done work looking at inflation numbers while we like to think inflation has peaked and we're through the worst part of it, you make points historically fighting inflation above 2% >> typically with inflation coming down from north of 5% which this is that situation, it takes 48 months to really get inflation back to 2% the fed target we're 20 months in we think that the peak funds rate at 5% sounds fine to us,

but the market is pricing in cuts later this year i think they might be getting ahead of themselves based on history at least it could take some time to really get inflation back to 2% because of some of the structural factors it may be down to 3% to 4% which is easier. all the way down to 2% could take time. >> what are you concerned about how long the fed will be vigilant in its fight and you would tell people the price point is too high and you look for lower prices before you buy in >> on the equity side, we're neutral. we think we're in for a rate strain for a while on investors, you want fixed income in the portfolio. we like front end tips for one-year or two-year broke even

in the 1%. we likene owning front-end tips making sure you are owning bonds in the diversified portfolio we think the fed fund rate and overall rate will be high for some time. enjoy earning some yield here. we have not seen this in a while. >> mimi anid malcolm, thank you coming up, the fallout from the taylor swift debacle has made it to capitol hill. so bad trehe is a senate hearing. that's next. more "squawk box" is coming right back

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the senate judiciary committee wants answers about competition in the ticketing industry with the taylor swift ticket meltdown. promoting competition and protecting consumers on live entertainment. we will see. ceos of livenation and seat geek will testify at 10:00 a.m. we will talk to two members of the committee. senators marsha blackburn blumel they will be here in the 8:00 a.m. hour of "squawk box." if you were to design a stress

test for this, you would use taylor swift >> that would be the way they are right if they can get rid of bots and no ticket that costs $22,000. that is the ticket senate hearing? >> could it have ever gone smoothly i don't know how many concerts could you sell out? >> ticketmaster said there was a cyber attack that led to the problems it would have cost $22,000 if you could have gotten tickets. >> right when we come back, the markets are going to get more pieces to the earnings puzzle today. we are waiting on results from 3m, ge is just out travelers and verizon coming up in the next hour verizon ceo hans vestberg will join us at 7:30 a.m. he will be here on set with us

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good morning welcome back we are down 86 on the dow. we had two winning sessions. friday and yesterday up 250 points on the dow ge is reporting. let's see if we have a trade in the shares yet down a little bit. down 2%. the bottom line number seems okay $1.24 adjusted that was against expectation of $1.13. the estimate was for 21.592. the company lead with their best foot forward the company with orders of 25.4 billion. all segments were up adjusted revenue was $21.5

billion. they are giving forecasts that look below the street. you have to remember these results including ge health care that was spun off from ge on january 3rd. ge healthcare will release fourth quarter results on january 30th from here on out, we'll see whether these are apples to apples they have a fiscal year estimate next year which was above what the company is forecasting from continuing operations. i think that's probably why. larry cole said 2022 was the new beginning of ge. successfully launched ge health care made significant operational progress and continued our steadfast commitment to our customers. there's a lot of other metrics and operating that the company

reports that maybe these guys "squawk on the street" will glean more larry culp will be on "squawk on the street" later this morning ge is a work in progress before the 2% loss today, it was an $87 billion company. it is reemerging as an industrial heavyweight it is a different company than it was it orchestrated that reverse split. it never seems to never really go up. let's go back further on the chart. the reverse split was 100 after that as you see, it got as low as the 40s at that point. see. up near 100. now 78 on ge let's talk about dow's 3m.

coming in with concerning news let's see where the stock is trading. down 2.1%. the company came in with adjusted earnings per share of $2.28. excluding special items. i haven't found that that compares the street estimate of $2.28. you can find more bad news they are warning of the full year they expect market challenges to persist in 2023. as a result, guidance for 2023 is organic growth of down 3% to flat they are talking about adjusted free cash flow of 90% to 100%. adjusted earnings per share o of $8.50 to $9 that is a significant drawdown comments from the ceo mike roman. the difference with the outlook and street is off partially because the analysts have not factored in what announced of

the pe manufacturing they are talking of the continue decline of the respirator d demand for the quarter that just ended, rapid decline in consumer facing markets that accelerated in december along with slowing in china and moderating industrial demand the company moved quickly to adjust output and control costs which helped deliver $250 million inventory improvement. they will cut 2,500 global jobs which is necessary to bring further in line. mike roman is not satisfied with the progress of the company in the face of slowing demand and ongoing supply chain challenges. they will improve the supply chain performance. what is concerning is hearing

demand accelerated >> switching back to ge. this is not after splitting off healthcare this is a stink. it is at renewable energy unit which is an issue from the past. persistent money losing renewable energy now forecasting $200 million to $600 million operating losses for renewable business in 2023 as a result, $1.60 to $2 number forecasting is against expectation of $2.36 >> wow. >> poor results due to uncertainty and following the renewable tax credits in 2021 which hit customer demand and inflation pressure hitting margins and forcing ge to raise

prices use your eco imagination for ge with their renewable business. so far it has not, obviously, paid off for the company as it restructures >> that stock now down 2%. the last i saw at 3m down 3% 3m is a dow component. that is now down 86 points >> they missed -- you know, the adjusted revenue number for ge is close to the outlook for 2023 which is surprising. free cash flow beat expectation. down beat outlook. maybe in large part due to the problems we highlighted. okay johnson & johnson. reported moments ago meg has more meg. >> joe, it is interesting you are focusing on the 2023 results for the companies. that was a major source of

anxiety for johnson & johnson. this stock up slightly because 2023 guide looks in line let's start with the fourth quarter. a bit of a mix a beat on adjusted earnings per share at $2.35 against $2.23 estimate revenue was a slight miss for the quarter. $2.7 billion against $23.9 billion that analysts were looking for. ceo citing macroeconomics challenges in the fourth quarter. sales decline by unfavorable foreign exchange and reduced covid vaccine sales. the pharmaceutical was the biggest and medical devices next and consumer and tylenol is the big reason for consumer.

$96.9 billion is what they are looking for on the year. $97.8 billion. the estimate higher on the forecast for 2023 compared with the averages estimate. we will have cfo joe worklk on coming up. joe. thank you. coming up, what is behind the move on the natural gas prices we will have the latest from amrita sen and then katie stockton. what is going on with tcbioin and the yield curve and more all that on "squawk box.

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welcome back let's look at what is happening with u.s. equities right now, the dow futures are off 68 points. that is not much different before the dow components j johnson & johnson and 3m ge shares are under pressure that put additional pressure on things johnson & johnson. 3m is down 3.8%. look at johnson & johnson. that is a different story. that stock up 1% right now we will continue to keep an eye on this. we are expecting more earnings as we head through the morning. natural gas prices down more than 30% over the last month on warmer than expected weather

where? not in davos the slide was halted in trading yesterday in part because of the cold snap. with us to discuss nat gas and energy is amrita sen amrita, we want to talk here or over in europe where we thought it would be a mild davos for us. it turned out to be very cold. europe seems to have dodged a bullet >> yeah, look, it has been in europe very lucky. we did have high stock levels to get into the year. then the warm weather has really, really helped. again, that doesn't mean that prices can remain at low levels because one of the things at this price level is encouraging industrial demand to come back sure, maybe this winter we can get through just about let's not forget next winter could still be a real challenge if we fail to build inventory. i would say we shouldn't get too

complacent about prices and we strongly believe in europe at least natural gas prices shouldn't be 70 megawatt hours. >> talk about this country now are we going to use electric stoves from here on, amrita? does that make sense what will happen to the great chefs? >> electric stoves look, i think ultimately the question is will we use electric stoves or gas powered or coal power renewables that was the for news davos. oil and gas companies continue to come under scrutiny i keep going back to the fact we need all forms of energy to meet demand growth. it needs to be clean for sure. we can produce oil and gas in a clean way. dec dec decarbonizing should be the

focus. one of the biggest challenges we continue to face and i just got back from asia this morning. china is just reopening. energy demand will go up for asia, price absolutely matters. even more so than pollution in that sense for them it is about economic growth we can't have clean energy at the cost of economic growth. that is the biggest challenge we need to face up to and balance that >> what do you expect to see in terms of we heard if china gets back to full strength by the end of the year and where will crude be that the point, amrita? >> we are already starting to see china come back to the market we are expecting chinese crude demand to grow 1 million barrels a day. that will be the strongest year on year increase in at least 20 years. demand will recover almost back

to 2019 levels and that will have a global implication. you will have to fly both ways we maintain crude will average $100 a barrel this year. there is a lot of upside to that number depending on the path china takes. it is the region every country in the region is so dependent on china for tourism or trade that is the big markets are under estimating they are focused on the fed and interest rates and rightly so, but this will be a strong asian demand story >> how does this kerfuffle with the european countries with the inflation reduction act? they are still grousingi about that they are trying to push back in some way how much are we talking about

it it is a small part of the overall energy picture they are worried about 10 or 15 years down the road. >> it is a small picture of the energy picture, but it is about the incentives we have seen last year when prices were going up with oil and gas and governments in the west and in europe came out with subsidies. here is the conundrum. you are saying we need to get ri rid of fossil fuels on one hand and the other we need to get rid of it. we need the between of focus on renewables over continuing to heat our homes and fire up the industries we need fossil fuels it needs to be clean >> let's say zero fossil fuels tomorrow, amrita what year would it e would we make it into the 19th century with the way we live would there be any international trade?

would anyone be going to europe? we would all be buying jimmy carter sweaters, would we not? >> yes, yes. in w if we were to go zero fossil fuels tomorrow, i would go lumber we need a lot of wood. >> everything else is headed to zero. >> economic growth >> amrita, thank you >> thank you so much >> cold. >> think about it. >> i have a back-up generator running on natural gas >> we do send things by plane all over the world, don't we >> yes us >> we can grow everything here and make everything here, i guess. >> it would be hard. >> you are going back to basically the 17th or 18th century which is what the woke people -- i want the woke people to live in the 18th century to see if they would like it.

the earnings reports keep coming this morning. 3m and general electric and johnson & johnson reporting. all stocks are on the move general electric reversed course up 2.1%. johnson & johnson is up by 2.5%: up next, we speak with johnson & johnson cfo joseph wolk over what is on the horizon with the health products and everything else with the giant. you can get the best of "squawk box" in the daily podcast. follow sawquk pod and listen any time we'll be right back.

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let's get back to meg with a special guest. >> joining us now, is j&j chief, joseph

there was a lot of anxiety going in because of comments your ceo made about a cautious outlook. >> certainly pleased we can make people happy with our guidance as we look at 2023, we are being responsibly cautious with respect to our guidance, with respect to covid surges, and slowdown in surgeries as well as austerity measures impacting prices in our pharmaceutical unit, but all in all it was a great 2022 where business was able to deliver above market growth in pharmaceuticals and a 6% growth in med tech, and then tremendous progress made with respect to the process to separate that business out into a separate company

we think it's the right place to be at this point in time given all the macro uncertainty and geouncertainty we have inflation built in, and that will flow through our pnl in 2023. we continue to manage our company responsibly and in a disciplined way. >> let's talk about some of the drivers of the quarter that you just mentioned looks like the consumer business came in ahead of the expectations on the strength of tylenol and motrin, and pharmaceuticals are essentially in line. >> the over-the-counter medicines with a heavy cold and cough flu season had another stellar quarter, but i was encouraged the skin care did

well and med tech missed a little bit of the consensus, and you can appreciate that there was a slowdown in elective procedures, and shortages of health care workers in that country and that impacted performance with pharmaceuticals, we did see a strong performance such as in tr trepl tpaoeua. all in all, it was, again, a very strong year and a solid quarter as we enter 2023 >> as we saw the strength in the tylenol and motrin products, i think parents everywhere are familiar with this story because some had trouble finding those

medicines for their kids on pharmacy shelves what is the supply of that looking like now >> that's a great question we have a commitment to patients and physicians, and mothers and fathers that rely on our drugs and products for their children -- meg, congratulations on your new addition, and it's important when those little ones are sick and you should be rest assured we are doing everything we can to make sure there's as much supply as possible. we have been running 24/7 since april of 2022 in anticipation of higher demand. we are working with pharmacists and health care providers and regulators to ensure we are maximizing output and working 24/7 there's good news with respect to rite aid and walmart, and they eased restricttions on

purchasing, and we are doing all we can >> i appreciate the congratulations. thank you so much for being with us, joe, and we hope to see you again soon >> have a great day, meg >> meg, thank you, and thank you to joe as well when we come back, dow components are expected to report any minute now. and verizon ceo hans veshberg joins us when we come back 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. this tiny payment thing-

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good morning, everybody. back-to-back gains for all the major averages this morning, earnings takes center stage travelers and verizon are in focus this hour. we will bring you those numbers and give you an update on what we are seeing. first, a cnbc interview with verizon ceo, hans vestberg and the second hour of "squawk box" begins right now. good morning welcome back to "squawk box" here on cnbc, live from the nasdaq market site, the warm and

cozy market site in times square where we are protected from the elements i am joe kernen, and this is becky quick and andrew is off. we have a lot of earnings -- five dow components in total today, but we had a big up day friday and yesterday when all was said and done, the nasdaq had a great session, up more than 2% treasuries have recovered. the yields recovered from last week, 3.5 exactly. that's what it was when i saw it this morning oil above 80, above $80 again. china is reopening they use a lot of energy and that's kind of been one of the reasons that we have not seen maybe higher prices across the board. then we will take a look at crypto and bitcoin and ether, because bitcoin was up

verizon also out with results. the communications giant reporting in line with expecta expectations revenue in line with expectations total wire service revenue driven by unlimited plan migrations, and consumer revenue was an increase of 4.2% year over year. we will get -- we will be speaking with hans right at the bottom of the hour, under a half hour now, right at 7:30. also dow component travelers reporting quarterly results as well this is a company that preannounced last week you can look at the stock right now and we have not seen a trade that has come through, and maybe we can get a five-day stock to

take a look at this, and we were warned the losses would be greater than analysts were figuring out for the quarter, and remember the storm in buffalo that killed many people, it was big across canada and the united states, that created more catastrophic losses that analysts figured out for things. right now it's at $3.40 a share, and that's inline for the expectations set last week and premiums up 10% for the quarter, and that's a record for the year the insurance company, when you look at some of these things, it's a situation where insurance companies are going state by state trying to get higher rates dealing with the inflation that far outpaced any inflation we have seen in a while the estimate was for $8.7 billion. just in terms of the storm at

the end of the year, $459 million in catastrophic losses pre tax, and that's significant. we will continue to keep an eye on what happens with the trade right now we want to get over to dom chu. he has this morning's premarket movers >> i have been waived off over my career by calling it a earnings career. the three other earnings stories, 3m, down 3.5, 4%. the company known for anything from industrial adhesives reported mix results that analysts missed forecasts. 3m cut their full earnings and guidance as well, and announced job cuts in their manufacturing

rolls. it's down 3.5% right now johnson & johnson is moving the other direction, moving up, about 25,000 shares of trading volume earnings per share, better than forecast revenues were a slight miss. they did forecast full year earnings with the range midpoint, and that was above estimates. johnson & johnson was helped along by other things. consumer health operations thanks in part for demand for things like tylenol and motrin and general electric up as well. and the soon-to-be splittup stock is doing better. on the consumer front, we do have an analyst's call getting

attention, and they are saying among other things consumers in 2023 will focus on value those types of things will help propel the results and then end with a check on natural gas futures, and weather is becoming more of a factor in the coming weeks and balancing because you can see worse or colder weather in the coming weeks. at one point we were talking about over $10 -- that 13% pop is what traders are looking at we will see if it comes to fruition, becky. back to you. >> thank you when we return, amazon is going to beef up its prime prescription for users let's get a check on the markets. we are down a few points had cole ga upood few sessions

"squawk box" will be right back. good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back.

our next guest says the 60/40 portfolio is baking a comeback let's bring in our guest, and we

are going to put last year behind us. when you say 60/40, are you saying that maybe bonds are finally pretty good at 4.25, or whatever, on a short two-year? we always have to be in stocks in your business, but 60/40, i guess for a while 80/20 would have been better, but now it's a 60/40 thing? >> yeah, by that we mean don't abandon the whole idea of diversifying it's the worst since 2008, and both down for the first time since 1974 let's leave the past in the past, and we can't make investment decisions based on something that happens every 50 years. let's stick to the strategy of diversification. yes, we think bonds are back, especially now that we have income again, and fixed income, we think they could serve the

role of diversification again. the concern is recession, and that's a pretty good environment for bonds. there's no need to over stretch in stocks. you can do more with less risks. again, the focus on leaning into core bonds >> but did you like bonds less the last ten years or so was this not a 60/40 to that point? >> significantly less. this is the best -- the most optimistic and excited we have felt about bonds since 2010. we used to come on the show and never speak about bonds, right, it was always about the market you were lean into risks in public equities and private alternatives you had to because you had to meet certain return requirements now you don't have to stretch quite so much. you could find a good sharp ratio return for your risks within bonds and you also need to stretch

into high yields and leverage loans. >> you could >> we will want to later in the year once we do have better pricing, especially around high yield. >> and clarity around what kind of recession it will be. >> and once that is priced in, it feels -- high yield had an amazing yield already. spreads are below 450 basis points it's not positioned for defaults, which happens normally during a recession even if it's a mild increase we would expect spreads to go over 700 basis points >> would you like ten years at 4.25 you can't get that >> we would love that. valuations were better acrossed board, and now we have had a

strong start to the year and we don't have those prices anymore. we think we are due for a little disappointment and we would use pullbacks to long duration fixed income, and corporate yesterday, and international stocks as well as the u.s. equity market. >> just the notion that bonds are back, and i mean, last year was weird in that -- they should be synchronized when you think about it, i mean, fixed income and bonds should be synchronized, and then you go into stagnation. >> yeah, they were synchronized, and we don't want them to be synchronized on the way down, to your point you need to price in higher inflation and rates. >> it seems like we may be --

it's at 20 now can we care? can we stay at 20 and the market continue to be okay? >> it has come in significantly. volatility in the equity market was never the main issue last year, and it was mostly in the bond market and the affects market, and we have seen the volatility come down as well we have less uncertainty about outcomes, about the inflation outcome and the rates outlook and the mild tkpwgrowth and recession debate with that said, will it stay below 20 over the next few weeks? probably not we may get push back from the fed about rate cuts, and the recession talk will come back but it's a mild increase in volatility >> did you ever say self

strength, like for the last year you have switched now. you are back to buying pullbacks? >> we are definitely much more, i would say, constructive. we spent the majority of last year being quite defensive we were arguing for having a pretty sizeable underweight to risk in equities and corporate credit expectations have changed. pricing has changed. >> pricing as changed and that may be the key we have seen some pretty significant moves. you are talking about the dow only 6% off of its highs that's a very different picture than what we were talking about last year. a lot of people feel good when you see a run like that. do you feel good or does it give cause for concern? >> i think this year has started too strong off the gate, and especially when you look at the nasdaq up, it's best month in 20 years, and you have a short

squeeze, especially it's a low quality start to the year. short basket is up 24% already since the december lows. that gives us pause for concern, thinking we are going back to the old mentality of buying mean stocks and unprofitable companies that can do well, which is unsustainable given that the eraof free money is over, and we would use that as an opportunity the biggest thing that has changed from our outlook last year, i would say it's not just the multiples that have come down, but also the earnings expectations we talked about that needing to be lower, and ad nauseam of all last year. that argues for a much smaller underweight and adding on pullbacks. >> on any given day would you buy oil stocks one day and tech

stocks the other day -- or do you favor a certain industry >> it's an exciting time again, where it's not a handful of companies and certain sectors, and there's a whole variety of things that can do well, right on the value side, we are interested in energy, on services and materials and china's reopening and on industrials, especially those related more to services, but we also like things on growth our favorite growth sectors are not tech at the moment, but it's health care and industrials. within tech it's an exciting time to sift through which companies are doing cost cuts and are going to be profitable now that the market is forcing them to, and which ones never will and will never bounce back. it's the year to look at things as glass half full versus half empty, and not just buy anything some remain as just value traps. >> microsoft -- would you ever do one of your research reports

and use that -- you have tried that >> i feel like that would be cheating or plagiarism, perhaps. >> yeah, somebody sent me a poem about "squawk. >> how was it? >> there were two versions i will come -- >> you came out best on both versions >> didn't mention any of us. it was just about "squawk. >> you write one, and we will compare the two. >> "squawk box" is the show to see, where wall street meets main street you will agree, joe, becky and andrew, they know their tuff, and they brings th news when the market is tough,

and the show is a must no room for dissenters don't be tardy for the ultimate premarket show, "squawk box" is dandy. the last line -- >> yeah, the last word was a bit of a mess. >> yeah, but other than that >> there was once a man from nantucket -- >> yeah, go on >> no, i won't >> gabriella, thank you. >> thanks. when we come back, amazon's new prescription perk for prime members, and then verizon ceo, hans vestberg, joins us. let's look at shares of verizon right now. after the company's report, wndo 1.5% we will dig into things with hans in a little bit "squawk box" will be right back. ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪

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the home builders have been in focus with higher rates in the sector dr horton making comments on this earnings came in better than expected street was only looking for $2.26 a share, so that was a beat of 50 cents

revenue came in looking up the stock reflecting that. you see it up three quarters of a percent this morning net sales for the quarter down by 38% to 13,382 homes this was kind of baked in. the market knew things were looking bad. the idea they were able to do better than expected is the reason you see the stock a little higher. joe? >> amazon announcing a new plan. bertha coombs joins us now do you get anxious >> zoloft is one of the ones on there, along with other medications, and this is a subscription for amazon prime

members to coax them to use the pharmacy it provides access for just $5 a month with free delivery with the pass, even if you are prescribed multiple prescriptions on the list, you pay just that one flat fee per each member. the program does not include insulin, and it's not open to medicare or medicaid patients because of regulatory issues it's amazon's latest push to gaintraction in the pharmacy after launching the pharmacy service in 2020. the company doesn't break out sales numbers or even talk much about pharmacy during earnings calls, if you look at the transcripts. there could be one mention

and last time the online pharmacy barely egistered. they are in network with a number of blue cross plans, but they need to get more traction with doctors as well as patients, closing that 3.9 million medical acquisition could boost that kind of recognition and the volume of prescriptions to try and get them on the map. joe. >> thank you, bertha 5 bucks seems like -- i don't know, it translates to what, 60 a year do i have that right >> yeah, consider if you are buying some of the generics, they could be $10, $12, $14 a month for a month's supply, and if you happen to get three of them, maybe a beta blocker and hypertension drug and anxiety, you get three of them for $5 a month.

that could be an enticement? >> how does amazon manage that what is in it for them >> they didn't talk about that part of it you have to think that at the moment, you know, you are not going to make much margin on generics, so they may be trying to bring that in to bring in more volume. if they can bring in more volume, they would not be at a loss it's one of those things where they are hoping prime members would be enticed by the price. prime members who are uninsured, certainly that's an amazing price. >> earlier we mentioned, did you mention male baldness? what is that >> asking for a friend >> asking for a friend >> yeah, the oral medication is better than a lot of those things that you rub in >> what is it called

i may already have it. are you talking about -- >> you are the expect. >> you are right, i am, on all things propecia. >> is it a bill? >> yeah, i worry about long-term usage, but i worry more about losing my hair >> you have a great head of air. for years people asked me if it was fake hair, and even my mom used to ask, is that really his hair i would say, yep >> it's real human hair. it is re -- >> you are supposed to say it's real and fantastic >> it's real and it's spectacular. >> spectacular >> yeah, that's right. bertha, thank you. still to come this morning, verizon out with earnings in just the last few minutes. we will break down the quarter

with the ceo hans vestberg after this and then crypto may face regulations, and we will talk to the ceo of gray scale on what to expect you are watching "squawk box" and this is cnbc

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defense giant reporting results, and morgan brennan joins us with those. >> lockheed. ceo telling me 2022, despite a drop in revenue, had the forecasting gap of 2660 to 2690 per share. but they still expect growth to resume in 2024 that's as supply chain issues continue to improve.

also poised to make more money from sustainment as well on defense spending, given the new congress, there is noise in the system but he expect a robust defense budget in fiscal year 2024, if even it's tough to, quote, decipher how the political fight will school out. it has eclipsed focus on the ukraine impact and geopolitics starting off the year. as you can see this morning, shares are up 1% on this earnings report. joe, jim taiclet will join me at 2:00 p.m. eastern. >> i am worried about our stockpiles i saw something that said we sent seven years of production

worth of javelin missiles, we have depleted our stockpile of javelin missiles, and it will take seven years to replace those. i guess it's good things for defense. >> it's good things for defense in the future, because you are seeing lockheed martin, and the are investing in the missiles, for example, in the missile lines to begin taking in more orders for replenishment, and orders to go directly to ukraine. you are seeing some weapons systems, orders forweapon systems go on contract the dod had been, at least, slower to do that in recent months, but that seems to be picking up and it goes to this idea that demand is increasing, but the translation to sales and the replenishment of the

stockpiles as they are related to ukraine is a story that will play out over the coming years, and not necessarily in 2023. >> great thanks, morgan shares of verizon down just over 2.5% in the early trading after the company beat revenue estimates for the fourth quarter and we will talk about the quarter with hans vestberg, the ceo and chairman of verizon. welcome. >> thank you for having me >> looks like the stock is trading more off the guidance you gave for 2023. when you look at the numbers it's lower than what the street had been anticipated you got a lot of other guidance numbers that we can look through, but the reaction you are seeing here, is that what you think it is? >> it's hard to say in the trading before the opening it's hard to say let's see how the day turns out.

we continue to generate cash more than anybody else we will continue with a strong dividend 16 years of consecutive growth we have a strong company then we had a year last year where i was disappointed in the second quarter, really disappointed because we didn't perform. took a lot of actions in the third quarter and started seeing some improvements, and then in the fourth quarter we saw improvement and momentum, and that's how we are come into 2023 it's a very competitive market we are getting better. >> the consumer wireless business, that's the one you have been running. you talk about the disappointment you had in the first half you did warn in july -- >> yeah, i did >> you talked about, though, in the fourth quarter, you already told people you had seen growth

in the consumer wireless sector. we are seeing some of the growth numbers today. the expectations, though, for the growth in 2023, i think that's below what the street was expecting, too the phone net ads, $41,000 the street was looking for 75,000 what are you seeing on the ground >> on the ground, i spend a lot of time in the consumer business first of all, our wireless was $270,000 in the fourth quarter on the consumer side, yes, we had 41,000 new net in the fourth quarter, but we are coming with the momentum into this quarter, and we have new offerings. we also decided to regionalize the organization to see that we are combating locally, because we will see traction where we

build the new spectrum that we have i think that's what we are seeing right now coming through in the numbers i have spent a lot of time in the stores during the holiday season, which was an interesting holiday season because there was a little bit -- the store traffic for us has grown quarter after quarter, but also was the intent to do business, which was much higher. customers come into the store and they want to buy and know what they want i think that's sort of both a little bit covid, and also that people are using the internet to browse before they come to the store. that's great for us, because the conversion rates are good. we have been focusing so much on the consumer business because we wanted to continue that momentum that we had in the fourth quarter, into the first quarter now. we have seen continued

conversion rates, and we have been soft in offerings there are certain segments that are performing extremely well, high end premium, and a lot of steppups where a customer will go to the next plan, and that is working well the low end of the premium has not been really good for us. and then in the prepaid, we are positioning ourself higher up. >> can you do that without losing some of the higher business to somebody's lower offerings? >> yes, you can. that's why you need to be very surgical in your segmentation, how you define the certain offering and et cetera we have a lot of brands that are in the prepaid segment they have another brand name

and then verizon, the premium brand, we are having different offerings in order to see that we meet the consumer needs there. we are not done yet, but i see the momentum i work with the team every day, and we are in the stores and looking into what the customers are saying in order to take this to the next level. >> did you at one point say i am so excited about alternative -- ar, and living in the metaverse, and it's expensive, isn't it how much investment do you need for that >> when it comes to metaverse, when i am thinking about my business, i am building the best network in the world or in the u.s., and you are going to have low -- if somebody is going to use the metaverse product and

will use a lot of software in the network, so you develop a new product, not a phone but something else for that, and that's what we are building right now. we are ahead of the plan we have the spectrum, which people don't remember. i am passing 200 million pops this quarter in one year we have never built so fast. so we are just continuing in order to have the best network and just improving >> capital spending will be down next year, 18.25 to $19.25 billion? >> yeah, it's been a sign in the network, and we are going to be down 20% -- >> i mean this year. >> yeah, 2023, we will down 20%, and we will continue because we have a little left of the $10 billion we committed to the spectrum, and over time we are

going to be down $5 billion in kay pix. basically, service revenue growth, and cash expansion, that's what we are focused on because we are in such a large business turning over almost $140 billion a year. we want to expand the cash view. and this year we are taking a portion of that and next year there will be more >> will physical constraints eventually prevent you -- prevent us from continually getting faster and more storage on the spectrum? >> no, so far -- >> is there something similar -- >> no. >> we can go forever >> it's how you send the data to there. >> yeah, it's all magic.

>> today on the 5g network, the speed, and we will be in a few years 2 to 3 gigs -- >> 20 gigs >> yeah, of course the devices need to have the same technology and the same chips as the network, and the network is always ahead, so as the phones or whatever device you are connecting to, it has that type of capability, we can increase the speeds. >> let me ask you, the consumer, you are focused on the consumer business what does the consumer health look like to you >> very interesting. we have the largest direct consumer base almost in the united states. our bad debts are not elevated and they are on the same level prior to the covid, but we also have a high quality consumer base i cannot talk for others we have not seen any elevation of that debt the customers are paying and

delinquencies are low. so that's good we have seen higher content come into the store than before, and the holiday traffic, they waited longer and came days before christmas. usually they start much earlier. it's new patterns we see, but overall we see good quality on our consumers, no bad debt >> you raised your rates and consumers were able to handle that was it enough to keep up with your higher costs? >> we made price increases in the second quarter, and we knew that that would impact our third quarter, and it did. and some in the fourth and then it came back to the all-time low that we have been running on the price increase that we did last year was, of course, a little bit about what is happening with inflation and et cetera let's see where inflation is going this year.

some things have actually calmed down when it comes to inflation, but we are always going to do it surgical and segmentational. it's not a broad stroke. that's the work we do every day on the largest consumer base in the country when it comes to wireless business. >> hans, thank you for coming in hans vestberg. >> thank you so much coming up, a check on other early earnings reports and crypto firm gray scale, the chairman will join us to talk about the move and possible regulation of the industry and the taylor swift ticket issue, we will hear from both sides of the aisle on that issue. stay tuned

this is real time insights kristin, so good to have you here safe to say companies have been through a lot these past few years between covid, supply chain issues, so much. what should they be planning for next >> well, there are significant challenges still on the horizon. inflation and economic shocks to come talent and workforce constraints. they have been through a lot in terms of the accelerating the adoption of technology, and this created a tsunami of data. leaders are going to figure out how to harness that data and unlock its value and growth. >> so what do companies needto do to improve their approach to data >> the first thing is being

intentional. intentionally capturing that data and harmonizing it across the organization then they have to turn that data and build the capability to turn that data into insights. finally, they have to use the insights in order to innovate their solutions, services and customer experience. >> how does the right data help a company succeed? >> well, the right data improves that customerexperience. the right data unlocks the scale of their business and the right data accelerates trust and transparency >> really appreciate you sharing your insights. thanks so much >> thank you welcome back to "squawk box," everybody. we want to take a look at some

of the other names reporting this morning the first up, 3m, check it out stocks down by just over 4.5%. this came as the company fell short of estimates they were hit by charges as the company moves to stop production of what is called forever chemicals. also a warning about the current year forecast, and all of that adding up to put pressure on the shares this morning. then johnson & johnson posting better than expected earnings. it fell on the estimates of viewer vaccine sales and the stronger dollar, and that's down about 31 cents and general electric beating the street, and there's strong demand for jet engines and power equipment, and that stock is up by over 2% and the ceo, larry culp, joining us later this morning. and the justice department is preparing to sue google alphabet, and this is according to bloomberg saying the lawsuit

will target google's dominance in the ad market, and the pending filing follows reports that the justice department rejected concessions offered by google last month, and it would mark the fifth major case in history challenging alphabet alphabet shares, as you can see, down about a percent coming up, grayscale ceo joining us we're in the red

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for wherever business takes you. comcast business. powering possibilities. laying out 10% of its workforce in the latest round of job cuts there. they previously cut their head count by 10% in june and another 7% in july the company joins the long list of crypto firms announcing or deepening staff cuts just in the months following the collapse of ftx. >> bitcoin's rally gathering steam, up about 40% this year. it comes as lawmakers are trying to figure out ways to regulate cryptocurrencies with us is michael sonnenshein, grayscale ceo who is in d.c. talking to the house and senate members as his lawsuit against the s.e.c. moves forward we have seen the gbtc do a little better as bitcoin has gone up, michael, but ociously still as a huge discount to

where it would be trading if you got a spot etf any progress i know that it's episodic, every time you're on, you bring us the latest what is the latest now >> we got some great news last night being here in d.c. the litigation against the s.e.c. is moving along quite swiftly. the district court and the fifth circuit announced oral arguments for our case would be heard on march 7th. so moving things along quite quickly, and i think really on an expedited timeline. it's wonderful to be back in d.c. new year, new congress and our team is really here meeting with both sides of the aisle, both houses of congress, and really continuing to advocate for investors this is a really important issue, and it affects millions and millions of investors that own gbtc directly, through etfs, through mutual funds >> what would you like to see,

and the feet dragging, i don't see any with gensler and everything else. i don't see the regulations you need to finally get to where you want to be seemed far off. is it 2023 when you think we'll see something? >> we're certainly expecting a decision from the courts in q2 or q3 of this year but i think the frustrating thing for investors and certainly for the grayscale team is that we're actually a business that was born in the u.s., made use of existing u.s. regulatory frameworks to bring crypto to investors in a safe and compliant way, and actually, the approval of a spot bitcoin etf doesn't require new legislation being passed in fact, it fits into existing regulatory frameworks. as we're meeting with both houses yesterday and today, what we're really hearing from folks is lot of them share in the belief had the s.e.c. already approved the spot bitcoin etf, allowed gbtc convert to an etf

already, a lot of the recent investor harm in crypto would have been prevented. a lot of these investors would not have gone to offshore exchanges and got caught up in businesses not regulated in the u.s. the way grayscale is. >> is it too simplicstic to say some of the things the s.e.c. is looking at, these are some of the risks you can see in trying to go forward with this. you acknowledge that some of these things are, you know, it's still a relatively new landscape, and some of the things they worry about you acknowledge are things that you worry about as well. >> of course we do crypto is a new and emerging asset class, but it's here to stay i think that it's important to remind the role regulators like the s.e.c. play when it comes to investors. they're not here to tell investors what to or not to invest in. they're here to insure all the proper disclosures are made so

when investors go to put capital it work, they're made aware of all the risks associated with any potential investment they're making, whether that's bitcoin or otherwise that's really the role of the s.e.c., a disclosure regulator, not a merit based regulator. >> i'm a little confused about some of the stuff at grayscale i have tried reading this, to understand, but bitcoin trusts people aren't allowed to redeem. that's why it's down so much the net asset value is like a 40% discount i mean, those seem like things that investors would be concerned about too. is there a point where you're going to allow investors to start redeeming? >> certainly, the path we have been on with gbtc is to convert it to an etf that's the way it was constructed in 2013 and it's still the pact we're on today and the path we're advocating for. ultimately, we have tried to

answer that question to the best of our ability in that if we do exhaust all of our judicial options to challenge the s.e.c. stance on this product, we would entertain working constructively with regulators and shareholders to offer a tender offer. and ultimately, that would not be a great outcome given that that would be a materially deviation from bringing an etf to market and quite frankly, it would mean u.s. regulators were once again shutting the door on bringing bitcoin further into the regulatory perimeter >> why don't you lower your fees in the meantime? >> we have committed to lowering our fees >> why don't you do it instead of committing to it? >> certainly, the environment around crypto is an environment where costs that are associated with running products are going to be higher today than they are maybe for traditional products like equities or fixed income. and certainly in a competitive market where we believe gbtc

will be the first of etfs and others will come to market, there will be likely a race to the bottom on fees and we're committed to that for investors. >> you think bitcoin has made a low, near term low or maybe a permanent low at this point? over the history of bitcoin, higher highs, higher lows, but the distance between the highs and lows are pretty significant. you think it's on its way in an up trend back to, i don't know, $25,000, $30,000 a coin? >> you know it's tough to predict where bitcoin is going, but what we hear from investors is perhaps most of the negative news they have been anticipating has dropped so we're maybe seeing a bit of a relief rally in crypto at the moment. >> we're not going to get anywhere with questions like that, but it has a pretty good start to the year, and that's obviously helping in gbtc and other assets anyway, thanks good to have you on.

>> good to see you guys. >> when we come back, ticketmaster facing the senate judiciary committee later this morning after its taylor swift ticket debacle we'll talk to two senators who will question the company. "squawk box" will be right back. e and trust are in short supply. [clap] now, as businesses we can blame and shame. or... [whistles] we can make a change. [clap] we can make work, work for our communities. create more equal opportunities. [clap] it's time for business to show its true worth. because it's not goodbye, world. it's hello, team earth. [clap]

good morning earnings coming in hot and heavy. we have results on johnson & johnson, verizon, travelers and more of america's biggest companies. bitcoin near its highest level in months. is this the thawing of the crypto winter? the crypto ice age, some would call it. going to speak with katie stockton and bad blood. with ticketmaster. lawmakers set to grill ticket executives today after last year's taylor swift online sale fiasco we'll speak with two senators who will be in the room fixing things for us. as they always do so well. the final hour of "squawk box" begins right now. >> good morning.

welcome back to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is off today. we have been watching the u.s. equity futures after two days in a row of gains you're going to see red arrows the s&p down by 10, the nasdaq down by 52 a lot of this is because of concerning earnings reports, concerns warnings about what to expect too check out treasury yields and you'll see the ten-year is trading just at 3.515% we have moved back above 3.5%. in terms of those earnings, fourth quarter results out from verizon. they beat analyst expectations on the top line and matched on the bottom line, but their fill year adjusted earnings fell short of expectations. the ceo hahns vestberg joins us on sets last hour. >> actually, i was disappointed

in the second quarter. we didn't perform. took a lot of action, second and third quarter, started seeing some improvements in the third qua quarter, in the fourth quarter we saw improvements, momentum, and that's what we're coming into in '23. he sounded upbeat in terms of the consumer outlook and continuing to see traffic in stores in january that they saw in december too. take a look at shares of verizon down by 2.6% and fourth quarter numbers out from johnson & johnson, adjusted earnings beating the street, but revenue slightly missed revenue guidance also disappointing versus expectations the company is forecasting higher than analysts sought. the cfo joined us earlier in the show as well >> being responsibly cautious with respect to our guidance there's some pressures out there that we saw in the fourth quarter with respect to covid surges specifically in asia pacific. some slowdown in surgeries as

well as austerity measures impacting pricing in our pharmaceutical unit. but all in all, it was a great year in 2022 >> take a look at their segment results for the fourth quarter a slight beat for the consumer unit that thanks in part to solid sales of tylenol and motrin during a heavy cold and flu season dom, i think you're going to talk about ge at the end that stock has turned around and the lowered guidance and the big losses in their renewable unit, i think people must be focusing on more of their core business than where you don't get government subsidies or whatever is ailing that unit that now i think the stock is up, but you'll get to that in a second >> i will, and i think a lot of it is that and then it's the core because we talked about the spin-off of ge headache. there's a lot of moving parts at ge for sure, but those are leading to some volatility

i want to follow up on some of the dow results you mentioned. some of the earnings we're watching this morning for for instance, 3m, down 4%. over 100,000 shares in premarket trading volume the company behind post-it notes to scotch tape to cleaning chemicals reported mixed ruts again. earnings mixed forecast while revenues came in better. they cut their profit guidance and announced they would cut around 2500 global manufacturing jobs ceo mike roman says he expects challenging macro economic conditions to persist in 2023. so those shares down 4.5%. next up, a fellow dow component in travelers the insurance giant not active in the premarket down fractionally. that's because part of their information was already expected it preannounced some of the metrics last week including higher than expected catastrophe

losses due in part to the deadly winter storms. travelers earnings were in line with preannounced results. revenues were slightly better. to your point, we'll end on shares of general electric which are jumping, currently about 2% higher, roughly 320,000 shares of volume, soon to be split up better than expected profits in revenues its full year 2023 profit forecast that was below estimates due in part to continued challenges like joe said at the renewable business ge already spun off the health care business earlier this year. expected to spin off its energy business at some point next year and by the way, we'll hear it all, ge's ceo, larry kulp, will be joining the team on "squawk on the street" first on cnbc in the 10:00 hour later on this morning. back over to you >> thank you we're going to talk more about this morning's earnings and what could be ahead for the broader markets. joining us is jason brady, president and ceo of thornburg

investment management. and you guys have, what, $41 billion in assets under management >> that's right. >> okay, so you're watching earnings season. you're hearing what these people have to say, watching the gains we have seen in the market in the first part of the month so far. what do you think? how are you feeling utthings >> i feel like the market has gotten a little ahead of itself. joe talked about this morning that ge is up almost 100% from three months ago where you are are a product of where you have been. 2022 was about normalization you saw rates normalize. you saw earnings multiples normalize. now in 2023, it's about the earnings themselves. what we're seeing this morning is it's a mixed picture. banks were good, consumer strong, but some of the industrial names are having more trouble. >> i was a little surprised by some of the guidance that we're getting for 2023 3m, sounded like things are pretty rough things were rough for them in the fourth quarter it got worse towards the end of december what changes

part of what they talked about was china was a problem. does china reopening solve that problem or not >> it solves that problem, right? we're also getting another solution is that the strong dollar challenge to a lot of earnings over 2022 has reversed quite a lot. you'll see less of that excuse you'll see more of the excuse not only of weather, travelers, but more of the excuse of a slowing economy, a tough macro economic environment, which again, you're seeing in these numbers right now. >> one things, hans vestberg was just here, and he has been focused on the consumer business because he's gone back to run that business, that consumers look pretty good in the fourth quarter and that was continuing. i guess it just depends on what your business is >> we see thornburg that the balance sheet of the consumer is okay moynahan has been on the record saying look, people have lots of cash in their checking account, but the income statement is coming down. information hitting different parts of the consumer, different

areas, different economic spectrums. as you look forward, the retail sales number in december, just one number, but the retail sales number was saying look, maybe we're not going to spend as much even if defaults as you saw earlier, are pretty good >> so what do you like >> i think outside the use, you have a lot more opportunity. valuations are low now that's always true, i get it, but even adjusting for sector differences, so less tech, you're seeing valuations outside the u.s. interesting that has rallied, so i'm maybe less enthusiastic if you asked me even a month ago, but that dollar is going to be less of a headwind you're seeing china reopening which is a tailwind to places outside the u.s. and a much more target rich environment than in the u.s. >> when you start worrying about the fed, do you worry about the fed at this point? have they done their job is it enough do you worry they're going to

raise rates too much >> the fed is designed to be behind that's just how they work. they even committed that or doubled down on it a couple years ago saying we're going to wait to see the whites of inflation's eyes i don't worry about the fed because you sort of know what you're going to get. the idea the fed is going to stay at a high level of rates for the rest of 2023 i think is very inconsistent with their history, let's say, and market is pricing in cuts is reasonable >> why would we ever think they're any better at forecasting, in fact, as good as an average person at forecasting, given the history over the decades >> i think the most sort of cogent comment over the last couple years was to the fed's credit, atlanta fed invited larry summers to a conference and he essentially said go outside. just go outside. and exactly, they're not spending enough time outside >> if everything they do is looking -- they don't do a lot of leading indicators.

maybe they factor in the stock market or whatever, but most of it is they look at things happening over the past three months, six months, year so everything is in the rear view mirror. and in fact, when they said inflation was transitory, they were staring right at it, so that wasn't even backwards that was in their face, and they still didn't see it. >> i mean, they're smart folks and they try hard. and if i were in the seat, would i do a better job? that's an open question. part of the problem is their mandate are two things that are relatively backward looking. inflation doesn't show up all at once it builds. and employment, which is very strong right now and that's their concern, it's one of the most lagging indicators. so to say we're not going to forecast anymore, not going to try to look ahead. full transparency is part of the problem. >> in their defense, look at the people we have on who it is their job to forecast the stock

market can you imagine if any of those -- if any of those people were able to act on their forecasts with monetary policy i don't want them doing it either nobody can really forecast >> bring up the year end 2022 forecast for small strategists >> they would be easing when they ought to be tightening. just like the fed. >> one other huge problem with that, if the fed really is taking asset prices into account, which we know they do because of financial conditions, then the fed is in the business of forecasting stock markets or trying to control them now you have a feedback loop which is not where i would like to be if i were the fed. >> good if they were there for, like a relatively small amount of reasons >> emergencies, 2020, 2008 >> you're involved in way too many things. they would just do something simple >> maybe less transparency honestly >> back to greenspan >> a little bit. >> jason, thanks for coming in

>> coming up, taylor swift fans having a hard time we're going to beat this to death, have a hard time shaking off last year's bad blood that camefrom the online ticket meltdown any other songs? many swifties couldn't get their hands on passes for the singer's upcoming tour. and washington noticed all too well >> there you go. >> i did it. after a break, we're going to speak with two senators who are set to help headline the hearing today on whether ticket giants have too much power and whether bots have too much influence you don't want to ssmi it. you're watching "squawk box" on cnbc makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated.

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fresh concerns over whether top players have too much power. joining us now, two senators set to question executives today republican marsha blackburn, great state of tennessee this is so nice, and next to each other, democrat richard blumenthal of connecticut. i'm really -- well, let me read this first in november, they co-wrote a letter to the ftc about combatting bots in the online ticket marketplace i'm looking for a bipartisan moment here. can we both, senators, both just agree that taylor swift is a phenom, a songwriting aficionado the likes of which i don't know how often something -- someone like her comes along would you agree with that, senator blumenthal >> i would totally agree that we need a bipartisan approach to reforming the ticket market. it's a mess right now for taylor swift, for fans and consumers, for other artists, and for the

venues the reason is there's no competition as a result of a merger between ticketmaster and live nation. it's the 800-pound gorilla behind this mess and if taylor swift had choices, she could have gone to a competitor if there had been competition, live nation and ticketmaster wouldhave used better technology because people could have gone elsewhere to buy the tickets. they control 70% of the primary market for ticket sales, 80 of the top 100 venues, and this is a system that has to be reformed >> i was -- do you both agree she's great? senator blackburn, i know you agree on what we need to do antitrust wise i was looking for partisanship are you a fan? >> absolutely. we have so many talented artists, and taylor swift is one of them. and nashville is home to many of them >> yes, there you go

>> not only did taylor swift have problems, but you had the bob dylan concert that had problems you had other artists. you know, when i am out and about in nashville, i hear from tour managers, i hear from business managers, talent agents, how frustrated they are with what is happening with live nation, with ticketmaster. and they feel it's appropriate for us to step in. and indeed, in 2016, when i was in the house, senator schumer at that point and i in the house passed the bots act, which gives the ftc the authority to move in and to go after these bots to work with these ticketing platforms. and the ftc has not exercised that authority they ned to be doing it. they have only brought forward one case but the point is, also, that

these ticket platforms need to, when they know they have a bot in their presence, they need to give that information to the ftc. so that the ftc can go after this, so they can be blocked from these sites and so that fans, whether they're fans of the grand ole opry or taylor swift or any of the other, other ones that are out there, they can get the tickets for the shows they wants. >> and i am a fan of taylor swift, but it goes well beyond taylor swift >> it's a lot of them. >> she's got nashville and memphis and elvis and graceland. you can't compete here, i don't think, senator blumenthal. don't even try >> we have the best talent in the country coming out of tennessee, you're right about that >> across the board. >> a great state senator blumenthal - >> we're going to stay bipartisan

>> it seems like antitrust is back and i'm just wondering, is there a problem just with this consolidation among too few players in this whole industry taylor swift is unique in that you knew what demand was going to be like so someone could have anticipated this i would think. and with lena khan, will there be a target on this whole industry the way it's run right now, senator >> i agree that antitrust is back and there are various remedies that ought to be considered. one is a typical remedy of unwinding a merger it ought to be on the table. where senator blackburn and i clearly agree is there has to be more effective action against these bots that enable the scalpers to corner the market, buy up tickets, charge exorbitant prices, astronomically rising fees, bait and switch tactics this system is riddled with

problems that could be countered under the existing law, the bots act, that both of us helped to lead and possibly there's a need for new legislation like the boss act, which is an acronym for long title to the legislation, but obviously makes reference to an artist of equal fame, boss, near to connecticut. >> and let me add -- >> i found one, senator. michael bolton i don't know >> connecticut westport, connecticut. >> not quite taylor swift. go ahead, senator blackburn. >> yes, if i can add in on that, see, one of the problems that we have when you look at the fact that ticketmaster has 70% of your venues and of your live venues, and then you look at the way they are transacting this

business and they're also, when you go on that site, like if you went onto a sporting event site, there's information for ride share services and hotels and additional events. they're capturing a lot of data. what are they doing with that? now, when you talk about, they wanted to say that cyberattacks have caused this well, what are you doing to protect from all the cyberattacks not 70%, 80%, or 90% of them, but all of them. we have critical infrastructure in this country. our banking industry, our health care industry, water, sewer, utilities. and every day, they have cyberattacks, but you know what? they have figured out how to thwart the vast majority, 99.99% of those so ticketmaster is not doing their job to protect consumers and leading the consumer

protection data security committee as we have done in a bipartisan manner, if you're looking for bipartisanship, then this is something that we're saying, let's clean this up. let's make this right. so that consumers are not disenfranchised. >> i know that - >> i think that's a really important story here, on this issue, a consumer issue, a vital issue to not just taylor swift but many other artists, who many of the venues who are told by ticketmaster and live nation, you have to use both our services you have to use our ticket sales services if you want the artist. and also to consumers who are frustrated with the sold-out concerts, the bait and switch tactics, the exorbitant hidden fees this system is broken and what you see is a bipartisan effort to make it right >> all right great. senators, thank you.

slim pickings. i found john mayer he's okay. peter torque from the monkeys remember him >> they all come to nashville. >> no competition. i'm sorry. it's just not even close >> we've got it. we've got the corner on that market >> you do. one word elvis. although i think he was born in arkansas or mississippi maybe i can't remember but we know -- >> he was born in tupelo, lived in memphis we'll be happy to take you to graceland when you come to memphis. >> i watched the movie on the way back >> i just watched it >> senator blumenthal, don't even talk. you're just not part of this conversation i'm sorry. john mayer just i'm trying my best for you, but i'm not getting anywhere taylor swift

>> thank you, both and thanks for playing along >> all right, when we come back, technician katie stockton will break down the recent jump in bitcoin prices plus, we're going to speak with the one and only analyst with a sell rating on microsoft ahead of the company's earnings tonight. that stock right now, $2232.24. let's check out shares afflockheed martin that company reported a fourth quarter top line beat but guiding for flat sales in 2023 the ceo told our own morgan brennan that 2022 marked the most orders for the company ever that stock up by 1.7%. you can catch the ceo in an exclusive interview at 2:00 p.m. eastern time on "power lunch." "squawk x"ilbeig bk.bo wl rhtac

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coming up, what to watch as the first mega cap reports tonight. going to talk to microsoft after the break. >> stay tuned, you're watching "squawk box" live from the nasdaq market site in times square started flying, and we would experience turbulence. i would watch the flight attendants. if they're not nervous, then i'm not going to be nervous. financially, i'm the flight attendant in that situation.

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welcome back to "squawk box," everybody. we have been watching the futures this morning and it's about the same as it's been for the last half hour or so dow futures are off. the nasdaq off by about 53 >> microsoft set to deliver

quarterly results after the bell tonight. it's the first of the mega caps to report, and it will come just days after the company announced it's laying off 10,000 workers cnbc's steve kovac joins us to talk about the challenges microsoft is facing. >> yeah. do more with less. that is nadella's mantra, i guess you would say, during this whole thing. now they have to live by their own mantra, doing more with less 10,000 people less going to cost $1.2 billion this quarter to fire all these people and consolidate office space and so forth, but what they're facing, analysts expecting the slowest revenue growth in several years. just 2.7%, and on top of that, slowing cloud growth, foreign exchange head winds. this whole mess of headwinds facing them. but at the same time as they're trying to cut costs, they're investing billions in chat gpt,

open a.i., and if regulators say so, another $70 billion on activision >> i feel like saluting when i hear $1.8 billion. i'm sorry, trillion, $1.8 trillion did you ever see if bill gates had not diversified, maybe he should not have taken warren buffett's advice on diversifying he would be worth a trillion dollars now. as a result, he has to live on $250 billion what a juggernaut. and year after year, people have windows by now >> that's the problem, is pc sales are just tanking right now because everyone bought computers in the pandemic for two orthree years and now that's coming to an end that's why you see people cut their i.t. spend >> this was one company chasing growth, thinking this was going to be the continued plan they grew too quickly. >> look where all the cuts are, on the hardware side a lot of reports, even on the

high in the sky ideas like metaverse, a lot of people got the ax there they're really shifting towards this a.i. thing and gaming in the cloud, and that's where they see the future going so even as they're cutting all these costs you're seeing them spend tens and tens and tens of billions of dollars. >> steve, stay with us we're going to be joined by the only wall street analyst with a sell rating on microsoft right now. john is senior manager director at guggenheim securities if you're the only one with a sell rating, why is that >> i can't speak for everybody else but we have a sell rating for some of the things steve was talking about, and one of the things i'll expand on one of the things he talked about, that is windows. the sort of cornerstone of microsoft or one of the cornerstones windows is driven by pc unit sales, windows accounts for about 12% of revenue, but it's

more than 20% of profit. and as pc unit sales tank, this may be the only thing that satya nadella has talked about and looks to be wrong on he said that pcs have reemerged coming out of covid as sort of the center piece of the digital world. he sort of implied you were going to see consistent growth in pcs and that just doesn't look like it's going to be the case at all. so when you look at valuation of microsoft, and you kind of look out into the future, based on revenue, too, because the macro backdrop is affecting most of their businesses, but also profit those numbers that you look at, even though they're not really cheap, they're probably even higher multiples than people realize. >> john, let me ask you, satya may have been wrong that the growth was going to be steady and tlefrb forever, but could you be wrong that the decline of the pc, and these things getting

tossed aside, could that not be a long term story either maybe this was a case where sales were pulled forward for a year or two. >> we're not saying that pc is dead, and it's gone away it's certainly not, but you're right, probably pulled forward a year or two. a gy year or two was what he sa, well two years, they see some challenges he's been right on a lot of things the pc showing that kind of consistent growth. he may be wrong on, he may still be proven right over the next couple years he did say they're going to see challenging over the next two years which is forever when you're talking about technology investing. >> how do you think the company is feeling right now about chat gpt, which we know they're doubling and tripling down in, and the activision takeover, as

well, the purchase of that company, if you have to fight this legally is that something you think they still have a strong appetite for? >> chat gpt and a.i. in general is a technology, the concept is not new, but we now have the infrastructure, the world, the i.t. naur of the world that enables that to happen much faster, cheaper computer, network, memory. those foundations allow you to do things with a.i. and machine learning if microsoft -- this makes a ton of sense this is a good -- a great company. and they're looking to the future they should invest for the future this makes a lot of sense. it's not going to affect their financials anytime soon. and when you have that distance between that effect on the financials into the future, there's always risk. other people could get involved.

will microsoft be a leader here? so we look at that and it's a positive thing. but it's not something that is in our model right now the last thing you said about activision listen, the xbox business, the whole gaming business for microsoft has been a commercial success. it's great we all know people that are big gamers it hasn't been a financial big plus you could say okay, it's part of an ecosystem and built upon the commercial success of microsoft as a company, so it's perhaps moved to other areas, but if you look at the financials, it took a long long time i'm not really even sure the entire business is profitable today. there are some profitable components of it, very profitable components. at the same time, they're buying activision it's a great company we'll see. we thought that there wouldn't be the challenges that there are. in the environment today, you're seeing a lot of challenges

will it get done, do they have the appetite to do that? that's a question i don't have the legal background to answer >> hey, john it's steve let's switch gears over to cloud because that is what this stock usually trades on after those results come out we were already warned by microsoft that growth is going to slow down a couple digit percentage points. when do you see it easing up or do you see it easing up? can they get back to the high growth numbers >> actually, amy hood, cfo, said cloud was going to slow sequentially, five percentage basis points when she said that, we thought, well, she missed the last two numbers, the last two azure growth rates by 100 basis points so she didn't want to miss it this time. we assumed they would do better

than that. even at 300 basis points or 200 basis points, that's worse than expected >> you think it's because of things like energy costs what causing them to miss like that >> they're the only ones who have said that, at least within our coverage i think it's the macro backdrop more than anything probably two things. the macro backdrop, and microsoft, most software companies sell to enterprises for the most part. microsoft has a lot of snd exposure during the macro slowdown, the s & b gets hit harder than enterprise that's probably affecting it, too. listen, it's not so much this quarter with azure, although there could be risk in that given the conversation that's coming out of microsoft. but it's really the second half. the second half. the numbers are probably too high there they probably have to come down. >> john, how far would the stock have to drop before you liked it again? >> our price target is $212.

when we look at our dcf and what could happen as far as what we think will happen, as far as growth and cash flow or sort of steadiness and cash flow you know, it gets around there, it doesn't -- i'm not sure if sale is appropriate. that's our price target. >> thank you very much steve, good to see you when we come back, chart master katie stockton on whether the move higher in bitcoin can last where it heads from here >> also, as we head to break, a programming note for you don't miss an earnings interview with the ceo of ge, a little later this morning on "squawk on the street." that's larry culp. we'll be right back.

welcome back to "squawk box. the futures just gotten quite a bit worse just in the last few minutes. let's look at treasuries, see if we can glean anything from that. the dow down 150 nasdaq is down let's get down to the new york stock exchange with jim cramer, with 5,000 components reporting, doesn't take much to move the dow, especially when some of them are high priced did you see anything in the last few minutes? a couple weak reports. >> i think that, look, joe, i think there's profit taking and people are trying to make something of the negative call

out of bernstein or people are worried about what's going -- let's say of the majors. they all went up when they first reported and then there's this kind of gloom suddenly out of nowhere, but just to me, it seems overbought we have the alphabet justice department story which is negative i don't think it's of consequence. i think we're fine stocks have been up a lot, they're cooling off a bit. i don't think there's anything that is really substantive here that's against the market. >> 3m is a little worse than it was earlier. general electric should be an interesting interview, jim >> i totally agree >> they shrugged off the renewable, i don't know what you call that, money pit, but everything else seems to be doing better >> i think power is really important because of ukraine people switching back to natural gas, starting to get more positive on nuclear, which is really the wheelhouse of larry, for the spin-off aerospace is very strong we saw that with raytheon, too

aerospace is really great. i think lockheed martin is the curious one. they had gone down the most ahead of quarter and they're rallying some of these are we expected decent quarters. we got decent quarters it's not enough. i find that actually a suboptimal way to look at for instance that excellent interview becky did with walt from j&j j&j is doing well, but the stock is down because there's a rotation going on against health care and i think if you want to buy j&j, that's a great opportunity. that stock was up because it was good but it's now down because it's part of the rotation so i say you have to start going against the rotation soon. because it's getting absurd. >> how about microsoft later today? still a juggernaut, is it not? >> well, i am still trying to figure out why they took -- this is like when they did that

mysterious currency in a quarter and it was bad now they did these layoffs i think when -- i think people are going to say look, pcs aren't that good that's not really the story. the story is growth in cloud and web services maybe someone is going to say it's a little bit of a downtick. people want stocks down at this moment you have toaccept the fact, give them a couple days, but i think microsoft is doing very well it's just -- it's so is ge, so is y & j, and the stocks act as if things are bad. maybe we're in a rough patch after a great run. >> the cream rises i can see kansas city/eagles, that would be amazing. i have written off the 49ers maybe i'm wrong. the beatdown the giants suffered and then the beatdown the bills suffered what happened? >> bills didn't show giants have been playing over they head. the niners have good on both

sides of the ball. we're the best rush team they keep talking about the best defense. i like the best rush against purdy. i think that the bengals look extraordinary, and in the end, that's going to be a tough opponent >> you think patrick is young but is he going to be gimping around >> high ankle sprain, i mean, it's like a horse race you need to put beaut in that ankle. i don't know a high ankle sprain, we just know, is one of those injuries that sounds a lot better than it really is. good comments, basically can't walk >> and kelce, you know where he went to school that's going to be interesting >> i like my kelce more than your kelce look, i gotta tell you, i think once again, the weekend is going to be amazing because if mahomes shows, that's all we're going to be talking about again, the eagles, if you add the three you're supposed to

get, they're an underdog but the eagles don't like being underdogs. i may wear my underdog mask. i have a feeling it's going to show up this weekend >> all right, jim. thank you. we'll see you in a couple minutes. we'll be right back with top market technician katie stockton power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity

bitcoin this morning is 22,861 it was over $23,000 earlier, actually, last weekend up 40% since the beginning of the year joining us is katie stockton she a cnbc contributor starting with bitcoin, may be a stretch, katie but in the past you talked about it can be top dog or tail and what w wags it can be a gauge of sentment for risk and it definitely moved ahead of some of the equity markets. the s&p 500 is still range

bound. is there positive development that's make you think the low is in at $16,000. or do you still think at some point we test that $14,000 level? >> i mean, the positive development is that it has rallied enough to give folks an exit who were looking for one. we see what 40% up move just this month alone the catch with that is that when you see such strong, very steep rallies, they are more characteristic of counter trend moves. what would be actually more bullish in sort of the contrarian fashion for bitcoin and other coins is like more of a slow grind higher. that is something that is much more sustainable than i think at one point we had 14 consecutive upday this is month for bitcoin. so we're skeptical as to the sustainability of this rally we're still viewing it as counter trend. but we would acknowledge that it did clear the 200-day moving average as one threshold on the chart. this has happened before it proved to be a false

breakout so we're not convinced we have brakeout here. but it is an incremental positive development on the chart. we hope this manifests itself in a longer term indicators which still very much point lower. we have conditions in place but they've been in place for many, many months now. it's not until we see the uptrends in those gauges that we can really feel confident that we have something meaningful because it happened so quickly, it hasn't had that impact yet. >> so you think that it could be an opportunity for people that didn't sell on the way down, they could sell here you've got -- you're at neutral now for bitcoin? had you been at negative >> we had been at negative and we moved to neutral just to kind of impart that we're not bullish. so we're not bullish we are looking for counter trend signals to develop as early as this week based on those trusty indicators we use. that is something that would create conviction hindusbehind g

selling. and that does show that there is the risk appetite might be falling off a bit here. >> how about the s&p 500 had a good start to the year nasdaq had a pretty good day yesterday. are you -- you would call yourself neutral there now or are you still looking for the down trend to reassert itself? i want to get excited about it but dwoenwe don't have breakout. we don't have any major improvement in the long term indicators the rally does show a little skiddishness on the back of what we saw last week which were some extremes and market breadth. we saw a lot of overbought down turns last week. so we're really, again, here unconvinced of the sustainability of this rally we do have resistance for the s&p 500 essentially in line around 4020 based on the weekly cloud. the 200 day moving average is

still in play as a resistance zone we view them as cushions and not precise points we think with resistance in line, short term overbought conditions having been widespread last week and with still the dominant down trend that there is a lot of risk here and we continue to watch for just the broader market including the nasdaq 100 names we're watching the vix, the vola volatility index if we see the 50 day cleared, that's at 2150 right now, i think maybe we're pioint or poin and a half away from that the breakout from the 50 day is associated with volatility events and down drafts in the major indices. that is something that is a bit of a risk metric to watch. >> yep, the vix. okay china, they're trying to reopen. what about the energy complex? commodities in general does oil look higher >> oil does look high. we have an open recommendation

in crude oil that resistance is in line around $82 per barrel. momentum shared there on an intermediate term basis. we're bullish crude oil here we think that it's in a longer term trading range now having lost upside momentum and that starting to manifest itself as well in the energy sector and stocks that represent the space. so we don't think this is the banner year for energy that it was the last two years we think it will sort of fall down on the sector fund. we're trying to take advantage of where there is a potential outperformance and also upside momentum in terms of china -- go ahead >> no. i was going to say the last question and we're almost out of time were you surprised that ten year got down to 3.3? what kind of trend are you -- do you see there now in the ten year >> the uptrend is still very much intact. there was good support between 33.5 and 3.25. so that support is holding

we have seen a little down tick in our longer term gauges. and that's something that we got our eyes on. i think they do point higher so at a minimum, we're looking for yields to move higher over the near term. and where they close this month is going to determine whether we have one of our counter trend signals confirmed. so at the end of the month, we'll have more information from our indicators as to whether this uptrend perhaps is tiring for the next few months. >> higher interest rates higher oil prices. lower bit lower bitcoin prices thanks, katie. really put me in a good place. it is what it is >> yeah. >> the famous line it is what it is thank you, katie we'll see you back maybe starting -- maybe something is building maybe some building blocks are coming i don't want to try to influence you in any way just come in it and tell us how you feel which you do. thank you. >> i will.

>> all right let's get a final check on the markets this morning lots of earnings out this morning for dow components, many other companies. added up to not great news at least that's how the market is interpreting it right now. dow futures down by 140 points the s&p 500 futures down by 20 the nasdaq off by 80 that does it for us today. make sure you join us tomorrow >> going to be a great show tomorrow >> it is we have a lot more earnings. look out squawk on the street begins right now. good tuesday morning welcome to "squawk on the street." we're live at post nine of the new york stock exchange. futures a little wabbly here we have done the first batch of industrial q-4 results coming up in the next few hours, we're all over the earnings movers we vicinity views with raytheon, ge and union pacific all respective results and that's where we will begin a bunch of names we could start with 3-m this