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tv   Squawk on the Street  CNBC  January 30, 2023 9:00am-11:00am EST

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that were left for dead through the past cycle >> all right looking below the surface of the index, cameron great to see you talk to you soon >> good to see you >> a big thank you to mr. santoli and ms. kayla tausche in washington this morning. fun morning. we got a lot more to go and a lot of earnings this week as well we'll keep our eyes on all that. make sure you join us tomorrow "squawk on the street" begins right now. ♪ good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. post markets read on an unusually busy week. central bank decisions, including the fed, a jobs number, an opec meeting, two-year yield is back to 4.25%. road map begins with a test of that rally plus we're keeping an eye on
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the evs, so to speak tesla shares are coming off their best week since 2013, and then there's shares of lucid, up sharply on friday and again this morning on these acquisition rumors and back at the white house, well, they're delivering a bit of a broadside to big oil's big buybacks let's begin with the eagles going back to the super bowl after winning the championship five years ago as you know by now, 31-7 over the niners, a classic showdown now between what some argue, jim, two best teams in the league >> yeah, two best teams, and andy reid was an unbelievable coach, friend, introduced me to howie rosen, unbelievable general manager, friend, hof general manager. look, i think it's going to be fantastic. good matchups. and congratulations also to the niners who tried hard without a real quarterback and to the bengals, who tried hard, except
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for when you hit someone illegally. >> yes people talking about 240 yards of penalties between the two championship games the refs were active >> these are supposed to be let them play, but these were nasty. the niners lost control of themselves in the game, and it was unappealing and shocking they're a better team than that. we got one more to win, but thank you for mentioning it. box was rocking, and i just enjoyed the game i mean, you always enjoy a game when ned segal drops by, right there's my wife and me, lisa >> sure. who wouldn't want to see ned segal? >> no, former -- just -- i'm saying, there were niner fans. >> no offense to ned, but really, who cares? >> i just like him because he took on musk fred taylor took on musk >> you got a lot of unemployed friends. you want to bring them up? >> i see some travel but anyway, we had a great time. lisa had a great time, and look,
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it's not over. >> no. >> no. >> we're going to -- andy reid is a great man >> we're happy for reid. the empire state building, by the way, went green. >> that's ridiculous >> the queens borough president said to the manhattan president, get your borough under control >> what is going on with that? as a jets fan, someone who will never see the super bowl, that's so offensive >> i saw that. it was so stupid >> that's a weird dream that somebody has years from now when we make it to the super bowl, which will never happen. >> post apocalyptic. >> later they did go red for the chiefs lot of chatter about the kelce bowl cnn with a piece today >> two hall of famers. >> the first mom to have two sons play against each other >> first mom to have two hofs, i believe. definitely hall of fame. >> came out flat i don't know why it was straight up, and then i think it's going to stay two points, unless we hear --
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michae mahomes did not have a high ankle sprain that was the canard of the weekend. high ankle sprain, he would not be walking >> that last scramble, suddenly, he's doing 4.340 speed >> when the 49ers quarterback, purdy, went down, they were working endlessly on his elbow em and wrist. when you had the guy come back in, he couldn't throw more than five yards so you had kittle neutralized, and that was really the game >> incredible weekend of ball. the street, meantime, gearing up for a very busy week. central bank policy decisions, a slew of earnings, especially when it comes to tech, big names out, due with quarterly results. apple, amazon, alphabet, meta. meantime, the nas, up to a strong start this year, 11% so far year to date, jim, one of the best months in a very long time >> yeah, i mean, i think that that's -- a lot of this, mike wilson's right there was recovering, and these
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stocks dropped a great deal, mike wilson being the principal bear of the year the one thing i would say is when you get stocks down, they can indeed rally this is more of a tesla rally than i would like, because now tesla's at 44 times earnings david, you know that there was a lot of animal spirits to this. >> there was i wonder if we underestimated just how much tax law selling took place at the end of the year >> yes >> because i mean, some of these moves are truly remarkable, not just tesla at 44%, and obviously, there is some news behind it in terms of the earnings report that we got, the price cuts and the idea that will stimulate demand, but i mean, alibaba is up. warner bros. discovery is up 57%. blackstone >> lucid does that in a day. >> we'll talk that in a minute blackstone is up 29% the moves in some of these stocks there's block. take a look at what that thing
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has done jim, i don't know what you -- >> nvidia has a story. >> nvidia. again, that's -- >> that's chad >> put these together, i mean, these moves are incredible for, what is it, 20 days of -- i don't know how many trading days we have had so far >> you have to get in there after the tax loss tax losses were monstrous. >> must have been. if you followed that strategy, and knew where that loss was -- tax loss selling was very significant, you're very happy >> you're absolutely right, because the common theme of these was that they were down a lot. it's not that their earnings turned out to be much better >> it's just the flip of a calendar, though that's all it took to have these kinds of moves >> there's been a bull market since october when rates peaked. the dollar peaked, and also interest rates peaked, and it's been a narrow rally, but it's not been a f.a.n.g. rally, and now it's broadening out. but i think that this is about the end of f.a.n.g., finally i coined it ten years ago this
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week >> wow >> and i just think it's just nothing. they're nothing. they're just stocks. and that's -- >> you got to explain what that means. you're just saying it's the end of this, why >> i don't think -- i think that thursdays, which is allegedly monumental, because there's apple and alphabet and amazon, is not we care about other stocks those stocks have been awful, except for apple they've cost you a lot of money. and we don't really care that's the strength of this rally. there's the irrelevant group that's mana from hell, not heaven >> b of a over the weekend said it's actually an interesting time when going large cap tech is contrarian at a time where chatgpt shows the signs of a new secular story. this bloomberg piece on apple's ar/vr product, some engineers there at the company think it could eventually surpass the iphone as their hallmark product. >> apple's not expensive like the -- well, we don't know what the others are going to do i was reading through some of
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the alphabet -- the google government -- the s.e.c.'s -- the justice department's report. >> okay. you mean on going after the ad risks? >> i want to retract my -- a lot of positive things i said about what these guys were up to i'll have more on that later >> so, you're having -- you're formulating a somewhat different opinion in terms of the government's argument against alphabet >> i think assistant attorney general kanter has more of the goods than i've ever seen. i'm working on this. 180 pages, got to really know it, but i think alphabet is ill advised in the way they've handled this lawsuit. their arrogance is shocking. you don't need arrogance right now. bad call solid democrat smart guy. paul weiss real good. not a joker. the alphabet people? arrogant same as old. no change. we're fine
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they're bad. stupid narrative >> it's going to take years, regardless >> it took eight years last time >> microsoft, it took -- yeah, forever. >> alphabet, this time, is -- when you talk with them -- >> world changes a lot in eight years. >> kind of like they made fun of you. like, hey, jim, here's our statement. we're right, they're wrong no, that doesn't cut it. you know, that's -- you know what that's like remember when balmer had those bad things to say about janet reno if they get personal and tell me kanter's an idiot, that was my law firm paul weiss, they had that same mantra we're not idiots stay arrogant. arrogant worked for microsoft. set them back ten years. ballmer year you've always been a big fan of the ballmer year >> yeah, what's up with that >> i'm known as a big ballmer era fan. >> it was the kelly era. >> true. well, i never get tired of
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watching ballmer and the cheerleading >> he owns a team. that's more than we can say about ourselves. >> and the monkey dance. >> we'll talk more about google as i do more work. >> i'm looking forward to that, too, but i want to come back to this f.a.n.g. call you're making >> they're not relevant. >> f.a.n.g., so far, this year has been very relevant if you owned it because you've done extremely well >> good. maybe you -- >> you're now mr. industrials. did you come up with an acronym for that >> no, i'm not going to curse them with another one. i'm one and done i had a real good one, and then i move on. >> you had a good ten-year run with f.a.n.g >> that's over the greatness of it being over is if we can talk about it forever and yet all the money is being made in other stocks now, nvidia is -- there's questions about how the chips are getting to china it's hard to symtop china. you could just say, listen, we're going to do a cuba-lake embargo, but that was hard cuba was not that big. how do you embargo the best
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chips we have? how do you -- the chinese can go buy them i remember even in the '50s, the chinese were always able to figure out what they need. >> you're referring now to the "wall street journal" story. >> i'm referring to eric campbell >> who >> eric ambler >> i assume most of our audience has no idea either >> he's a great writer >> what did he write about >> it's like "our man in havana," like graham green >> i know him. >> yeah. but i just think that jensen huang has come up with something. this turns out to be what i didn't see when i said, please paint me a landscape of cezanne, i didn't realize that was this. when i was talking -- i asked it to speak about shakespeare, i didn't know that was this. >> you're taking a.i >> yeah. but right now, it's a parlor game but you can imagine, pull up to a wendy's, and this asks you what you want. it's going to offer you
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everything it speaks every single language. it never gets the order wrong. and then you move on but you know, it's funny, wendy's, mcdonald's, they've, like, no we need the personal touch the personal touch how's the personal touch when you went with the baconator. what's that? the baconator. i said the baconator >> double cheese no, thank you. okay, pull up. >> i get it. you're talking about the actual uses of a.i. in situations -- >> when my wife wants a baconator, how frustrating >> it's amazing how often we come back to lisa and the baconator. all roads lead to lisa and the baconator. >> it's just an example. when she goes to mcdonald's, she wants a double cheeseburger. i don't know you can do whatever you want >> we start off talking about nvidia being up 37%, we end up somehow on lisa and the baconator. it's amazing that you can do that >> how does she get away with being that thin and still eating that baconator
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put that in. >> you're hitting all the right notes today. >> that's what happens >> you've got at least another good day or two of marriage ahead of you >> very solid marriage thick ice. >> i don't even -- how did we get here, carl >> i'm looking for ways out. >> always. >> we're going to talk about after the break, these price cuts now at ford >> they had to do it >> on the mach-e >> it's depressing because my travel trust owns ford i really had to cut. what am i going to say, that musk is -- he's brilliant, and he's a rapacious capitalist, right? like the guys in my box, the guy that got bounced >> ned segal >> for cause, he was fired >> he's working on that. >> working on that i think musk is like henry ford. cuts the price, everybody else doesn't do well, and then henry ford gets kcommoditized and othr guys go. musk really set these guys back. it's -- the price cuts are going
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to make it so that there's just nothing special. >> we're going to get to that and what it might mean for inflation cpi and the fed. when we come back, the white house ramping up criticism of big oil buybacks as we get a look at futures here coming off ckn montn wsssiolo ba ia me
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we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to 60% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ford is increasing production and cutting prices on its electric mustang mach-e crossover. it will lower pricing of the mach-e by an average of $4,500,
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depending on the model the reductions range from $600 to $5,900 compared with tesla's price cuts of up to $13,000 on the model y earlier this month i think a ford executive said, "we are not going to cede ground to anyone." >> yeah, you have to remember that one of the mantras of theirs is to never lose money on a car. they must have some margin here for them to make this, or else it's just not in the line-up it doesn't make money. my worry here is that ford's quarter and ford's year are -- have been suboptimal, clearly, as time was all the way up in the 20s and a lot of that is because people think there's going to be a recession. a lot of that is, they got to start delivering got to deliver that's -- they're trying this is a very big setback, because the mach-e has been a big winner, and they're going to put out 30, 40, 50,000 a month i will say that if you go back
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to the beginning of the tesla conference call, musk does say, look, we can bring him back up we've got some, we can bring the prices up a little this is to stop ford what musk was doing was to stop ford because farley has real momentum, and the mach-e has not sold through the f-150 is sold through. they have enough demand, and the f-150 is the star of the line-up. now, of course, musk has a truck coming >> he does >> odd-looking >> it's a ways away, but a more robust effort from toyota, which is still -- given the change at the top there and the approach that they have had to hybrids versus all ev and now perhaps going more significantly into sort of providing evs and having -- i mean, they already have a 3.5 million sale target for 2030, but with the new -- >> the question, you know, you have these tax credits on ev vehicles you hope that ford can qualify
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i don't know >> is their price going to be above that >> we're not sure. >> that was one of the keys for tesla, in terms of that price cut coming down and being able to get the $7,500 tax credit >> the margins are going to be very thin, and remember, ford's running an i.c.e., internal combustion engine company. >> tesla has the ability to cut price on that. put these things together, it's just not that hard >> no. >> well -- >> it's not like a combustion engine >> no dealer network, hardly any debt >> and ford's got giant pension obligations. they can do something with it with rates where they are, but look, it was -- it is still an exciting story, because of the f-150. >> yeah. >> which is the greatest-selling without this, and it will sell here but the mach-e was kind of, all right, our, you know, ford's best hope, and it will still sell, i think, but musk is just -- i mean, the man is
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somewhat -- he's someone unbeatable when it comes to cars >> last week, adam jonas of morgan stanley sqasked a lot of dealers if they had ever seen a car company cut prices by a fifth across most of their product range. no one could think of a precedent. he goes back to henry ford when he democratized the model t. >> that was also to keep out everybody. that was, you know, kind of like standard oil, when standard oil lowered prices to keep out everybody, but there was no -- standard oil had 100% of the market musk may want 100% of the market >> he's not going to have it >> no. >> guys, a very small part of the market is lucid, but it's worth mentioning this morning because obviously, that move up on friday, in part because of a news story -- i think it was betaville that the saudis, which own as much as 65% of the company already, might want to take it private. couple of things to share here i mean, the saudis, of course, already control this company they are spending, what, up to
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as much as $3 billion on a production facility for lucid. they also were a billion of the 1.5 billion at the market offering the company did remember not that long ago. so, there's not a big float here, first of all, which is one reason why you get the kind of moves lucid that you saw on friday remember, the stock ended up, i think, 43%, but it had been up as much as twice that amount at certain points during the day. i just don't have, at this point, the ability to say whether there's a real effort under way or not the clearly, the saudis already own a lot and put even more to work one question, though, is why you wouldn't want to have access to the public markets being fully private, i'm not sure how much that helps you lucid, you would think, would want access to the capital markets as a public company. >> they confuse me what's the point you need to raise money. >> right so, the saudis are just going to
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fund all the losses from here? >> let's just lose more money because we can afford to lose money? that's not capitalism. >> that's a worthwhile question. this is not an insignificant market cap at $22 billion plus now. >> one of the few not really great short squeezes that have been engineered by hedge funds deciding to stay short, and it looks like they play a lot like the bengals. let's just kick them when they're down sorry, there's refs. >> we'll get cramer's "mad dash," countdown to the opening bell take one more look at the premarket on a monday that -- on a week that's just going to get busy don't go anywhere. to adapt in the changing world, you could hire a professor of theoretical mathematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization. is that important?
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kind of the calm before the storm here ahead of the events later this week, whether it's earnings, central banks, or labor data, but we did get a surprise contraction in german gdp earlier this morning stocks in europe and in the u.s., challenged ahead of the open, which is coming up in five minutes. don't forget, you can catch us any time, anywhere, just listen to and follow the "squawk on the street" opening bell podcast
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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. all right, we get started with trading a little less than two minutes from now, time to squeeze in a "mad dash." american express >> here's one i really like. steve put up some great numbers. millennials taking their -- they've really become the leaders behind those who want american express card, but here's what's so interesting to me we had one, two, three, four price target raises, but three of the analysts have it as a hold, and the fourth has it as a sell, so at what point do these people break whatever negativity they have and come positive? that's why you want to stay long
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this, because one of these four is going to blink. i think maybe it's credit suisse, who's got a sell on it that's a suboptimal situation. pi piper sandler, maybe it's them but one of them's going to break it, and the stock's going to break out. you can't stay negative. >> it already has, hasn't it look at that move. >> david, that's nothing i'm talking about a run to the super bowl i'm not talking about bounce from the nfc championship. >> oh. >> i'm talking about something for real >> of this group, is this the name that you favor? >> i now do, because mastercard and visa are overloved, and all the fintechs have become, let's just say, fodder for recognition that when rates go up, can't be in them. person express has a lot of bad debt i think they misunderstand it's become far more a travel and leisure play for millennials than it is a small business
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plan >> there's a story in "the journal" about banks worrying about bad debt >> it's 2008 all over again because someone didn't pay for their car. let the banks lend if you see capital one's quarter, it was great. the journalists are very -- 2008 story line, and they'll go with that until people forget 2008. >> there's the opening bell, and mostly red live oak bank shares celebrating its transfer to the nyse at the nasdaq, new amsterdam pharma, focused on therapies for cardio metabolic disease to your point about the consumer, double beat, up premarket. >> i just texted anthony because i think this was remarkable quarter. we've been waiting for this quarter. he gave you -- look, the big thing that -- and i don't like the actual deck that he has. he's still emphasizing sign-ups as if it's a club, and that's
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fine, but he had some nice ebitda numbers seventh consecutive quarter of record generated ebitda. david, when you get that net rev generated added, you know you're not a big fan of adjusted ebitda >> i think it's something everyone needs to be aware of. it's used all the time >> i know. >> the analysts accept it. >> you see it in caterpillar >> but you got to make sure you understand what's being adjusted for, and that is typically in the footnotes. >> now, is this -- do you think the adjusted ebitda is from the pre-ge, the old ge handbook? where'd that get started >> it's been the last number of years. before a lot of the tech companies. particularly stock-based comp. that's not really part -- what will that be when stocks all go down and you have to start paying people with actual money? that's a key question. >> we'll talk salesforce later in the show. >> yeah, we'll talk salesforce in a little while.
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we can talk it now if you want >> that's up to you, david >> really? something is up to me? okay, let's do it. >> let's -- i'm gracious >> you're graciously giving me the floor for 30 seconds >> the gentleman from queens >> cheap shot. >> the gentleman from queens >> you're going to hit me out of bounds, i'm going to tell you you're going to ruin your game >> you're going to the super bowl, all right? meanwhile, i got a one-way ticket to palucaville. >> you can always switch allegiances. did you see the first colors on the empire state building? >> i think that was horrible i want the person who decided on that to be spoken to sternly to be spoken to very sternly that's not right >> i was not hit >> do they not know where the empire state building is located? did they think they had been transported to philadelphia? >> i thought it was the comcast building >> all right, let's talk salesforce for a minute, because a lot of activity last week,
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obviously. the stock has done pretty well during this period of activity they had those three board members, jim the question is, well, there are many, but is elliott going to actually get even more board refreshment? would they be willing to go to a proxy fight? i can't remember the last proxy fight elliott went to. it does appear mr. benioff has been more than willing to engage with any and all of these activists, whether it be starting off with starboard, where we know they had constructive talks, although jeff smith didn't end up on the board. jeff uppen, who i mentioned, a well known activist. his old firm, value act. and then you've got elliott. leaving elliott at this point, but you've got three new directors who will take their seats, beginning of march, and mason, its president, as an activist, is somebody who was involved at microsoft, for example. it's got to be seen as a fairly significant one. maybe they've done enough here where they can say to elliott, we're happy to talk, but you're
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not going to really get that far, and we're happy to even do more board refreshment, but you're not going to win a proxy fight if you choose to go to it. >> i tell you, marc's approaching this as i think the most ceo playbook, and the playbook that he has is, i'd like to talk to the l.a. people. i think i can probably learn from them, become better at my job if they have really good ideas. i will certainly embrace them. marc is -- look, he's more zen-like than most ceos, and carl, when you speak to benioff, benioff is like, wow, every one of these people, including the quote from elliott, they love the product, and they want to help me sell it better, and i think that, how could you ask for more than that that's what he says. >> this was your point on friday, that you thought it would be a little more of a dialogue >> i think that marc is one of those people that says, to elliott, you know what you and i share a love of what i
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have i want to know myself how to do better i want the stock higher. i need your help if he goes in -- you know how it's like they usually say, hey, listen, we don't really have time for you it's the other way with him. it's like, please, i need your help come in. here's everything. can i see the white paper? maybe there are some great ideas. and i think it takes people aback. >> and it may be if you're elliott, sometimes you don't want to be locked up remember, you take a board seat, you get locked up. >> that's a great point. >> you may want to be more flexible with what you own and the elliott perspective, and, again, this is still evolving mason may be viewed by them -- he may do what they would have done already >> that's a very good point. >> it bears watching i think it's interesting do you think part of this process will end, jim, with benioff agreeing to some sort of, hey, you know what, i've got -- we've got to sort of really anoint a successor. >> absolutely. i think that if you look at what
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elliott would most like, i think starboard, like, could you please give us a plan? we know that with brett taylor, you were grooming someone, and then you lost the person you gr groomed. >> it was never clear that he was being groomed, was it? >> and keith was not he was not anointed. but when i had taylor -- when i met with taylor at salesforce, at dreamforce, and there was no doubt about it taylor was the guy and i think there was also no doubt that he let marc benioff down now, when you go through this thing with -- against musk, and you win, it's a big deal, but that -- so, then, i think they want marc to continue the process. i think marc benioff feels, hey, listen, i got blindsided tell me what to do i really need your help. and these guys, again, they're not used to a billionaire, a very successful businessperson saying, hey, you know what thank you for buying me stock.
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now, can we sit down, and you really tell me what i need to do better and no one's used to that. they're taken aback. they might say, well, listen, stop the commercials we don't need the matthew mcconaughey commercials. well, i've been -- he suggested like ten ideas to marc, and marc is scribbling them down. we don't want him involved wait a second. will.i.am is a very zpintimidatg figure when you meet with him. matthew mcconaughey, my wife sat next to him. we'll have to get ahold of lisa. >> morgan stanley goes to $236 also at morgan stanley today, an upgrade of colgate, jim, on a day where the staples are really the only thing working >> that is very strange because colgate's quarter was awful. i mean, maybe you can just say, listen, we're waiting for an awful one. but that's the ticket. >> you could i mean, remember, you did have dan loeb there, speaking of act
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v activists. not in an activist posture there had been talk about, thrifspli the company. >> the shares to general mills you can just go to pet co and see how small they are i do have a colgate toothbrush that i bought for, i think, close to a hundred dollars it's called the hum. and you can set it up to be -- to run with your wireless, with your handheld. there, i question. i don't need help. what am i, like, turn my toothbrush on. it's not really as helpful as i thought. they'll say, jim, if you had read the directions better, you would have realized it actually does help. like this yesterday when it kept saying -- on my watch, your decibel is too loud. get out. i'm like, no, no you see, siri, i'm at a ball game just bring apple watch close to your mouth and make your request. i'm at a ball game there. >> steve, chairman -- president
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and ceo of kellogg, has been named to the colgate board >> oh. >> that is also -- >> let's put two underperformers together >> it bears noting, he is the -- he literally just broke up his company, right >> change agent. >> kellogg >> it's done nothing >> again, colgate resisted the idea of splitting the company. you point out it may not be doing as well as people would like it to be, but there still is this break-up scenario out there. loeb still does own a billion dollars worth of stock or whatever it is i don't know anyway >> well, is your point that they might break up or that they're getting better >> i don't really know that i have a point here. >> no, you can't say that, because that demeans our brand >> oh, sorry my point would be that it bears watching how's that >> i like it >> it bears watching it still could develop the initial foray for mr. loeb is very soft, but it could get a
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bit tougher. >> well -- >> is that something >> you see, you're going -- when you look at the sotp, the sum of the parts. >> you don't believe the sum of the parts of colgate adds up to anything >> no. i mean, maybe it can -- it's a very expensive stock you know, david, it could go one way, it could go the other >> there you go. some people might be surprised other people won't >> he's not alone. chips, jim this report that samsung -- i know you have been talking about them for a long time -- may consider cutting production. "the journal" has this pretty good look at the historic nature of this glut right now >> samsung is the -- they really are the -- they're the -- the ones who have created the glut i mean, they've been unwilling to cut back. they keep buying machines. they've been the bane of micron's existence, and david, i got to tell you, if samsung cuts back, then micron should be bought because samsung has ruined their margins and gotten
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away with it long enough what do you do when you have a competitor that's willing to sell below cost in order to wipe you out? what do we think of that >> what do you do? i'm not sure what you do >> not sure? >> no. you go to the ftc and complain i don't know what you do >> go to the ftc and complain about korea? go to wto. how about you just get your head energy >> that has been what's happening. >> maybe they're concussed they're in the blue tent, micron you definitely got to have samsung blink. >> we're going to get nxp soon >> it's auto, and they're field communications, and that's held up better. auto is just really, you know, they're still ramping up production because they finally have the chips people keep saying it's nxp's fault. from what i can tell, it is not nxp's fault that there's been a chip shortage. they just -- that one deserves to be up i think the others are more
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questionable i know amd is going to have to pull a rabbit out of the hat, because people just keep saying that intel -- we haven't talked about intel -- intel could really hurt amd. i would say that it turned out in the last quarter that amd, which i thought had de-emphasized pcs, still got caught with a pc rap we've not seen the gains yet of xylinx they paid a lot of money >> yes, they did >> so far, it's not diversified them enough away from the, i don't know, the catastrophe that is intel i don't know what to call it >> but the line of thinking is that amd will eventually put the hurt on intel through datacenter that's the next part >> intel talks a bad stoirry, b it's worse let me tell you something. on that call, that was one nice man. it shone through the call. i mean, look, it was an apology call what are you going to do hey, we didn't make the
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playoffs actually, i don't even know what metaphor to use. >> that was a good line. talks a bad game but it's worse. >> well, the quarter was like, he's still saying, listen, we're competitive. we're going to do three nano in -- next year. i mean, listen to me maybe close watcher of the show or a "tech check" guy. >> you can be both >> pat, listen to me stop it with the forecasts just put your head to the ground and say, listen, i'm going to do my best. on to cincinnati not going to talk about it don't set yourself up. this man overpromises and underdelivers since he got the job. it's enough. it's enough, and it must end >> this is what gelsinger told us on friday take a listen. >> what we've seen is, you know, customers carried a fair amount of inventory in q3 and q4 for the back-to-school and the holiday refresh. obviously, as they come into the new year and the macro situation
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for their business, major inventory adjustments. we're selling into our customers well below their sellout rates and their businesses, so it will be the biggest single quarter of inventory correction that we see in the marketplace literally in our history. >> well, we'll find out, because we need to know exactly what hp has to say i mean, you know, the hp, inc., unfortunately at the end of february but again, i think that pat gelsinger correctly describes the inventory glut but doesn't describe how it would end. so, he basically says, we have back-to-school no kidding the fact is that they keep pumping. they haven't cut back production they haven't developed the right chips for the next generation. and remember, it's not just amd. nvidia is the trojan horse of this period, which is that everyone thought they were just working on gaming chips, but they're really high-performance chips and it turns out, i would
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call them thp, too high performance, because the u.s. government has to figure out how not to get the best ones in their hand they make a little bit on every chatgpt. nvidia makes a little. have you been playing with that? >> chatgpt i have not been. >> you can say an ode to -- we've done every single eagle. there's no more left >> i did read maureen dowd's column yesterday in which she had shakespeare. >> one of my colleagues, heather gaines, was at the game yesterday, asked me, said, jim, who do you want to interview and i said, i would like to interview gandhi i said, welcome to the show, mr. gandhi, and i said, do you have any favorite stocks and he said, i'd really like to talk about world peace i said, that's great, but what do you think of the market >> what was the point of you interviewing gandhi if you wanted to talk to him about the market >> that was the computer generated. i would have asked gandhi about
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peaceful resistance, but -- >> you mean, it was having the conversation between -- you weren't yourself it was you -- >> have jim cramer interview gandhi >> so, when i interviewed gandhi in that world -- >> they think you're just a dollar sign. >> gandhi wanted to talk about what it was like, hunger strikes, world peace, and i was asking him about whether he thinks the pe is too high. >> you're like, shopify, buy, sell, or hold? >> it was -- >> chatgpt knows who you are >> it knows who i am and also knows how limited i am as a person >> you even are a person musk still thinks you're a simulation >> working our way back to the flatline after a down premarket >> we're off the low, risk off day, take a look, what's risk off? you want to look at ark. you want to look at semiconductors you want to look at metals and mining those are the three classic risk on, and they're all down today
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defensive stuff, health care, merck, procter is up, why are we down the data out of europe wasn't great. the spanish cpi was higher than expected it's going to be a tough set-up. we have had a big move-up. the fed is not going to come out and say, we've declared victory against inflation. they're going to say, there's a lot of work to be done, and they don't want the market to think they're cutting rates at the end of the year. they're going to throw more water on that. it's a little bit of a tough set-up then you see what jim was talking about, these huge advances in tech stocks that we have seen this year. google is up 11 or 12% nvidia is up like 35% on the year amd has been up huge on the month. it's up a big amount, some 13, 14%. so, there's a lot of little room here to breathe for the next few days the important thing is the friend trend, though we keep drawing these trend lines, and basically, last week, middle of last week, we broke through that long-term down trend that started with the highs in january of last year and lower lows, lower highs, that's what a downtrend is, and
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we're breaking through that, and yes, technical analysis matters in this, no matter what you think about it look at the strong start what you want to look for is, are more stocks advancing than declining? the s&p is up about 6% the advance decline line for the nyse is the highest since going back to september. a lot more stocks are advancing. 66% of the s&p 500 is above its 200-day moving average is that a little, a lot? above 50 is good above 60% is really good above 70% above the 200-day moving average, you're getting into bull market territory the other thing that's really important is just how broad the rally has been value stocks are up this month, but so are growth stocks the s&p is up almost 6% on the month. and the high beta stuff, this is usually -- this is stuff that will move more than the market does by definition of what high beta is, but it's really moving a lot more than the market, and this is often technology stocks. you can see, up 16%. the point is the breadth of the market is really, really wide.
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strong no matter how you particularly advance it one thing we could use is a few more new highs whe we don't have a lot of them. on friday, we only had a small handful of new highs, caterpillar, ge, a bunch of the big global industrials were breaking out uri was breaking out one or two steel stocks were up. one or two retail stocks were up starbucks hit a new high we'll keep an eye on that, because we're going to get earnings shortly, and a couple insurance names like chubb that's not a big list overall. i don't think the market is overblown. there's a lot of room for hitting new highs. here's the big earnings for next week, this week. remember, folks, we got a big number here. cat, u.p.s. and then amd, alphabet, amazon, all the big names a little bit later on in the week we'll keep an eye on that. remember, there's no big gotcha here the market can still advance >> bob, see you in a bit bob pisani this morning. as we go to break, let's watch bonds. got the two-year back to 4.25% this morning as the data flowed this week's going to be very
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heavy. tomorrow, chicago pmi. later in the week, adp, j.o.l.t.s., the jobs number and that doesn't include the central bank decisions we'll get down is down 26. is down 26. - psst! susan! with paycom, employees do their own payroll. - what's paycom? a magic payroll genie? - it's a payroll app. - payroll is way too complicated for the average person. - paycom guides them through it. missing or duplicate punches, pending expenses, unapproved pto, on and on. - why would employees wanna do all that? - this could be a stretch, but i think it's 'cause they wanna get paid correctly. i like getting paid correctly.
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caterpillar,
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. bunch of moving pieces on oil and natural gas today. we'll get an opec meeting this week bp cut their long-term oil and gas demand forecast. as for nat gas itself worst month since 2001 as germany says they are independent from russian gas. we'll see. wti south of 79. don't go anywhere.
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>> prologis, this is a warehouse company, but it's close to ecom. i'm trying to figure out if e-commerce is slowing. people are raising their price you have to go to someone like hamid. why? because you need an independent arbiter. everybody says they're doing great when it comes to e-commerce never been better. really doing well. you know, they're like never
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better. >> never better. >> never better. >> we'll know more by the end of the week one way or the other. >> oh, yes we've got -- we have the championships, afc and nfc championship don't want to say the big game. >> jim, we'll see you tonight. "mad money" 6:00 p.m. eastern time as we're in a tight range at the open, dow down about 26, circling around 4050 don't go anywhere.
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good monday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber live at post nine of the new york stock exchange we'll see if the bulls can keep the january rally rolling ahead of a ton of news whether earnings from central banks or labor data. >> that's it we're 30 minutes into the trading session. three movers we're watching starting with ge health care reporting its first results as a stand alone company following its spinoff from general electric the maker growing 8% as profits slipped and investors reacting positively shares are up 2% plus, we to watch intel, this following a
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big drop friday after the semiconductor's disappointing results. the dow component down more than 40% over the past 12 months of trading. essentially flat right now, but, of course, we're going to hear from more semis this week. alibaba down following similar trading week in hong kong, reports that chinese tech company could relocate its headquarters to singapore, seems to be adding to the angst. chinese tech names in general under pressure after it was a big rally to start the year. you can see shares of alibaba down 5.5%. >> investors are bracing this week not only for a very busy run of earnings, but also a possible interest rate hike from the federal reserve. steve liesman is going to get busy midweek. >> what do you mean midweek? we have the jobs numbers on friday it's going to start and end strong too fed chair, jay powell, faces a challenge this week to convince markets that rates need to rise and will rise to combat
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inflation or maybe giving the markets more dovish view of rates. markets expect a quarter point hike from the fed, but the gap between the fed and market for the outlook stands around 61 basis points fed raises the forecast to 2023, the market did not come along. investors decided for now to fight the fed. so there's three possible outcomes there the hawkish would be fed chair powell and the fed jawboning saying financial conditions need to be tighter. a neutral outcome could be you have your forecast and we have ours a dovish outcome would be the market has a point of view on inflation and comes closer to the market on the economic outcome. market looks to be focused on slowing consumer spending and sharp decline in inflation over the past couple months the fed received two inflation reports since the last meeting and show a sharp slowing of headline, pce inflation from 4% to three-month annualized basis.
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core down. that picks up food and energy. fed focused on the strong job market, claims under 200,000 the unemployment rate ticked down a tenth and job openings remain elevated at 10.4 million. market thinks the fed ought to accentuate the positive of inflation coming down and embrace the negative risk to the economy. not sure that's going to happen. >> remember when it was don't fight the fed. for years it was don't fight the fed. >> i want to cut you off right there. over the past several weeks, it has not cost you to fight the fed. in fact, you've made money fighting the fed that's when they say don't fight the fed because you lose money and maybe you will in the long run, but there's been no pushback, right. powell and company and his mignons have not come forward and said the hawkish things. i'm sorry to cut your question
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off, but i think that's an important point to make. >> steve, i guess it tees us up for the middle of the week and the expectation of whether powell could come out and do that and bat down the easing of financial markets or an expectation with inflation moving in the right direction, with a little bit of softness creeping into the labor market, maybe it makes a bigger end march. >> i don't think i'm whimpering out on this. i'm taking the neutral of my three outcomes i think the fed from what i've i have heard them say is let the market make their own decisions about the inflation and economy. the fed's concern is the market doesn't misunderstand it, and i think the market understand the fed, that if inflation is going to remain high, the fed is going to hike and remain high. the market just doesn't have that same outlook on inflation or the economy that fed does, morgan. >> steve liesman, thank you.
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let's continue the conversation and bring in ubs private wealth management ali mccarthy and daryl kronk good morning to you both ali, your thoughts on that conversation >> this is exactly what we were talking about leading into this interview, which is i think this all has to do with perspective the market has a perspective right now or a sentiment that it wants to go up it's looking through the recession and looking through what the fed is telling it, even though the decrease in inflation and the better things we're seeing is because consumer spending is going down, the market wants to rally. we've gone from pricing in a recession at 50 to 60%, to 10% i think what was just said is exactly the point. i don't exactly understand why the market is fighting or fading the fed so consistently right now, but you can't fade the fed long term and can't fade the market the market is going up, right.
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the market is growth on. we're going to get out of this i was telling you that of the laggards in q4 relative to the best performers in q4, there's a 15% spread going on. so yes, if you're going to get paid to fight the fed and go with the market, go with it, but i wouldn't be confused we've left all of the anxiety and the uncertainty behind and it's time to long-term dig it. >> what are you -- how are you advising clients >> we have a healthy amount of cash, especially when being paid and for private clients you're being paid incrementally to take u.s. debt in the stormy as opposed to longer u.s. debt and corporate debt we're waiting for that to change we're starting to lean into emerging markets, equity and bonds, and a lot of that has to do with the view on the dollar and the relative strength in value stocks that we see is a
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preponderance of other markets we are still solidly in things like alternatives that are neutral, you know, macro funds that can and did largely last year protect on the downside when everything else went negative. >> daryl, i want to bring you in to this conversation your thoughts on this topic since it's going to be such a big week with so many data points coming from so many directions >> yeah. that's exactly right i'm going to take the other side of this conversation or argument and say, look, when we look at this latest rally there's some tea leave signs where we're starting to show some exhaustion here 209s day, 50 day, 200 day are coiled tightry in a spring right now, next to each other, which suggests usually a breakout to the upside or downside what's interesting about the rally it's coming from places that are not as high quality, some would argue junkier places of the market, and getting -- gold is up as much as stocks are this year and all month long,
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even as the rally has happened, the 2 to 10 yield curve inversion is flat on 70 basis points it hasn't moved a dime i'm not sure there's as much quality to this rally. a lot of this is january effect, short covering and just actually some of the leaders that got heavily sold in tax loss snelg december, resurging in january we have to break out to the upside before i'm convinced it's not just another bear market rally. >> the big debate right now whether or not the impact of monetary policy tightening is working into the economy faster than in the past because if it is, and we're still seeing the kind of growth we're getting, that says good things about the economy's ability to withstand tighter conditions do you think we have an answer on that yet? >> well, certainly i mean the lag effect, which is six to nine months, we're feeling the june, july 75 basis points we've yet to feel the 75 in september, 75 in november or 50
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in december. there's a lot of tightening that still has to come. interestingly, it's a great point, carl, if you get below the surface and look at the economy right now, the economy i don't think is running as healthy as people think. m 2 money supply contracted $150 billion, 0.7% decline, largest monthly decline since the 1950s. money supply is contracting quickly. look at friday's income and spending numbers, real consumption declined again in december after an unexpected decline in november. the economy finished the year weaker than people expect, which on consumption, which is key, you lose the consumer, you lose the economy. i think there's some data there to suggest that conditions are, perhaps, tighter under the surface than many people realize. >> want to end with you on a bit of a side note you mentioned alternatives i'm curious what you're seeing there on private equity, there's questions, private credit, so
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many growing products still, how do you view that you mentioned it is something you see as part of a portfolio >> yes so we have had a significant amount, especially of private debt in the last number of years to replace what used to be sort of the healthy staple of fixed income for private clients you ask the right question i don't think we're there yet. i don't think we're close to there yet. right. so if what was just said is that it takes six to nine months for financial tightening to be in the economy, let's say it takes three to six quarters for it to get into private markets in terms of mark, et cetera what you're finding in terms of private market because there's been so much cash and so much funding for so long, a lot of these companies that would normally have to come back and tap the private equity and debt markets are flush with cash so they haven't had to have that moment of reconciliation, and so that's that still has to happen. that's why as much as we don't want to fade the market and take
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what we're getting, i think the digestion process we're going through has hardly begun, and down to all of those points that were just made about the negative consequences in data from ending last year, let's see what we actually see when we see first quarter earnings from this year and start leaning in with a much more sustainable bias. >> all right we're going to leave the conversation here and quite a conversation it's been thanks to ali and daryl this morning. as we head to break, here's our road map for the rest of the hour, the ev pricing wars. ford taking a page out of tesla's books cutting costs on one of its electric cars. >> we have technology stocks pulling back a bit today, but, of course, many names such as meta, amazon, and nvidia have been on quite a tear for january. we'll check in with drew rosenhouse with super bowl lvii set between the chiefs and
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phil lebeau has more on a lot of names in the sector phil >> david, take a look at shares of ford, what you're looking at here is a stock facing pressure
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after the company announced it is cutting prices for its mustang between 600 and 5900 depending on the particular type of mac-e ford will say they're raising production to 130,000 vehicles annually, that they're going to be increasing production bringing down the costs of goods and ultimately making it more accessible to more people. truth of the matter is, this is a price cut in response to tesla and what you're looking at here is that some mache-models will no longer be profitable a line drawn by jim ford who said we will build evs only if we're profitable doing so. they are no longer doing that with the mach-es speaking of tesla, daiwa raised the price target up to $200 from 145. not the only note on tesla berrenburg raising tesla to a
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buy rating on misguided pricing concerns we are in the beginning of a price war when it comes to evs here in the united states. what you're looking at is the market share of last year where tesla still dominates this market 64% of evs sold are tesla. you see ford way, way, way down the list at 7% evs 5.9% of the total market two other pieces of news regarding automakers and evs, lucid, we reported on this on friday they doubled on the rumor of the saudi private investment fund potentially taking lucid private. we should say that that was a report that was out there. it has not been verified by anybody else, that this is a possibility. we reached out to lucid, and it has no comment on market rumors. also take a look at shares of general motors gm reports its q4 results before the bell tomorrow morning, and the thing you want to focus on with gm is really what's the volume going to be
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berrenburg downgrading it to a hold we get the results tomorrow morning. the beginning of the price war in evs you will hear it spun by some like ford, we're making it more accessible to people and want to have the volumes increase the fact is tesla has the hammer and when it cut the prices that has put the pressure on its competitors and now we're seeing a response >> phil, the price war that's happening in evs and by the way, the fact that you're seeing new and used vehicle prices in general start to come down now, are we still above levels that, even with cuts, are we still above levels we're at prepandemic or come back down to something that looks similar to a couple years saying in. >> in terms of overall volume? >> in terms of pricing >> in terms of pricing we're well above where we were prepandemic. i'm not sure on the new vehicle overall, including internal combustion engine vehicles, i'm not sure we're going to see a
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return to where we were prepandemic. that's the concern for economists out there, you have so much of the inflation built in to a market like autos, it's hard to see that come out. now is it possible yeah i'm sure it's possible but i think most in the auto industry are accepting these higher prices may come back a little bit but they're not going to go to prepandemic levels. >> all right phil lebeau, thank you as we head to break, defense stocks are higher this morning bucking the trend lower for the s&p coming off a weekend rife with geopolitical happenings we saw the drone strikes in iran reportedly linked to israel. eu exploring options plus, on the ukraine front, requests to get f-16 fighter jets made by lockheed martin seemingly getting some support from the pentagon. all of this as house speaker mccarthy saying that essentially in an interview yesterday, defense spending cuts are on the table in budget negotiations
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you can see lockheed is up 1%, northrop up 2%, hi trading higher as well we're back in three.
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kicking off the busiest week for s&p earnings ahead of the foreign fomc and friday's jobs numbers layoffs are beginning to broaden out to nontech companies rbc notes while tech job cuts are spiking the extremely low number of industrial layoffs actually supports a soft landing for the economy looking at prior years of cuts ahead of economic stress may point investors in the right direction. joining us on set, "new york times" columnist jim schwartz with us. great to have you. >> nice to be here. >>s what struck you about what tech has done on head count so far? >> what has really struck me the focus has been so much on the big tech layoffs and understandably these are highly educated, highly paid, very articulate young people, but the overall employment numbers are incredible tens of thousands laid off in the tech sector but we're at an unemployment rate that is tied
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for a 50-year low at 3.5%, which is extraordinarily low some states it's like 2% so the slack is being taken up there's huge demand for workers but it's in this narrow, highly interest rate sensitive tech sector we're seeing cutbacks. >> last week we did see it bleed into dow chemical or dow, ibm, a little bit, hasbro non-tech firms do you think that has more to go >> quite possibly. i think it's the very large companies that are more sensitive to the macro economic factors and some of them, i think, anticipating a slowdown or pairing back. certainly the big companies that are media dependent, advertising dependent, there's been a pullback on companies willing to spend there. they're pulling back a little bit. but like i said, somebody else is hiring all these people one thing, i don't think -- i find kind of interesting in the employment food chain, a lot of
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these workers, the tech workers, are some of the most highly paid, best educated, they're not going to have any problem finding another job. it may not be as high paying and you can't roll out of bed and get six tech offers, it's filtering down, but they're not leaving and going to work at starbucks. >> we've seen structural changes to the labor market, niright? baby boomers and others retiring out of the market. immigration and some of the limits there with visas and the likes has continued to play a role over the last couple years as well. it raises a question in the week where the fed is meeting, how much can be done by monetary policy to loosen the labor market, given the fact that there seems to be very structural and secular in terms of the some of the dynamics we're talking about? >> yeah. i think there are limits to what monetary policy can do it clearly is having an effect i mean, partly because the valuation models for these high growth companies are very interest rate sensitive, and so
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as their stocks are coming down based on diminished future expectations, they're sort of looking at the hiring sprees and trimming their own workforce i think it definitely does have an effect. i think so far, i would guess they've got to be pretty happy with this. the super overheated job market is easing off. the inflationary pressures are sort of coming down. yet, still with a very low unemployment rate. i'm sure they wouldn't be sorry to seat 3.5 to creep up to 4, but that's still a healthy economy and nowhere near a recessionary environment. >> you mentioned rolling out of bed and being able goat a job off paerp lot of these people go to work in their bedroom it's another story, but one that has to intersect with the reporting, getting people back to the office, the leverage some employers are starting to get in a tighter job market what's your take at this point in terms of that overall,
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particularly as it pertains to technology where it seems there are a preponderance of people who don't work from the office >> and seem to have no interest in ever fwhorg an office again. >> there will be a lot of research and what is the impact on productivity of this working from home thing. of course, people who want to stay home, say i don't to commute, i have extra time, i'm available 24/7, even on weekends, but what are they doing when sitting in the bedroom. who knows. and so i think there's going to be a lot of interesting work done on that but the other issue to me is, depends on the industry, but there is this collaborative process that goes on in the workplace, prepandemic one thing that struck me in journalism, how much more was being done in teams. i hear that from all different sectors. technology has made that much easier but, personally, to really be effective in a team, i think you've got to interact face to face it can't just be an occasional
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phone call or zoom one thing i noticed, you call somebody they're not there they don't answer. e-mail them, they don't reply. in the office you walk over and stand there until they turn around and interact. several times i've gone in just to -- i said look, i'm camping out at your desk until you respond to this. because remote makes it easy to evade people so i think there are a lot of sociologists and economists will have a field day because we have this great experiment going on, finding out what is the productivity impact of staying home >> fascinating, jim. we'll watch that closely just thinking about pitching page one back in the day and just waiting for an answer back, right. >> exactly and it's the equivalent, so many businesses you need an answer. you don't get it if they don't respond. >> jim, good to see you. >> nice to see you. >> jim stewart. speaking of tech, the sector on a tear to start the year with names like meta, amazon, apple,
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all up double digits in january. we've got earnings from those names this week. early facebook and google investor in the meantime roger mcnamee joining us backto discuss. we're back in two. disease for years and the pain in the back of your eye is forcing bad words from your mouth, or...the bags under your eyes are looking more like purses, it's not too late for another treatment option for thyroid eye disease, also known as t-e-d. to learn more visit treatted.com that's treatt-e-d.com.
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welcome back to "squawk on the street." i'm contessa brewer. here's your update this hour. secretary of state antony blinken is urging israelis and palestinians to calm tensions in the worst violence there in years and condemned friday's deadly shooting at a synagogue and calls for vengeance against more innocent victims is not the answer. in pakistan a suicide bombing struck a crowded mosque within a police compound officials say at least 34 people were killed and as many as 150 more were injured. most of those casualties are police officers. no group immediately claimed responsibility for the attack. tyre nichols' parents and
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the man who disarmed the monitory park shooting suspect will attend president biden's state of the union dress address. the beating and the mass shooting at a dance hall have fueled new calls for police reform and gun safety measures david? >> contessa, thank you. as we've said a number of times, it has been a strong start to the year for some big name technology stocks take a look there in terms of the old f.a.a.n.g. meta right upthere with that, more than 22%, almost 23% gain we're still waiting, of course, later in the week we'll get some key results from the likes of amazon, alphabet, and apple. elevation partners co-founder and early facebook and google investor roger mcnamee joins us now to have a broad ranging discussion you seem to get pretty worked up recently about the old facebook or meta, trying to set al federal case related to cambridge analytica.
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there was a document dump in terms of documents that revealed what they were doing in china and russia what seemed to enrage you here to the point where you said, i don't have any confidence in our legal system but when i was a kid this kind of stuff would put people in the slammer for a very long time? >> so, david, what's going on here is that in 2018, facebook promised congress and other regulators throughout the world it would analyze its own information and see how many other cambridge analyticas there were, which means how many other companies were getting access to facebook user data in exchange for advertising revenues it turned out the number was in the hundreds of thousands, including more than 70,000 different developers in china, 42,000 developers in russia, developers in iran, north korea, essentially data that was allowing foreign adversaries to have complete access to american
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citizens, most inmate data, was being traded for advertising dollars. and facebook's been required by a court to release this stuff, so they waited until friday at midnight to do it. you know, the real question here is, will there be any accountability and like i said, i don't much confidence in that. >> yeah. so you don't think there will be accountability >> i don't, no i don't just because this is something that requires, you know, an act of congress or an act of courts and both of them have been reluctant to challenge any of the internet platforms. you know, i think that's why the stocks are up right now. it makes sense they all got creamed last year, and the reality is, that they are monopolists and the head count reductions that you've seen are not a sign of weakness. those are really a sign that these companies are getting rid of employees that they hired at the end of last year, and putting themselves in a position to grow their margins to make their stock prices go up
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it makes total sense to me that stocks have had a decent move to start the year. >> from a standpoint and regulatory standpoint the one company that seems to be getting more attention for which there seems to be more legislation finally coming, roger, is tiktok now you have the ceo of that social media platform saying that he'll testify before congress in march. want to get your thoughts on tha that, as we have seen states and federal governments to make tiktok illegal on state-owned devices. >> the issues with tiktok are very real. the product is the ultimate algorithm machine, and it's very clear from things that have been le released that from what tiktok is doing is having a harmful effect on young people, teenagers in particular. so the concern is legitimate to me, the notion that tiktok is a greater national security concern than facebook or google or any of the other big platforms, i think is a bit of a
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stretch, but if this is what it takes to get people focused on the harms and to actually do something about this, i think it's a really good move. we'll see what happens, in fact. >> roger, chatgpt, i wish they would change that name, by the way, but you talk about the impact that facebook and other platforms have on political discourse. what are your thoughts about the ability at some point in the not too distant future to create, obviously, not just deep fakes, but bots that are fully engaged in sort of opposition politics, whether true or not? >> so, david, to me, the promise of a.i. is fantastic the reality of it, as it's being practiced today is terrifying. the reason is because they're cutting corners. if you wanted to make really great a.i. you would base it entirely on data sets that were authoritative in value
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instead, what they're doing is basing it in stuff they scrape for free off the web and the result is you have garbage in and garbage out. in the case of chatgpt, you're wrapping it into a piece of software that makes it sound incredibly authoritative it basically is a b.s. artist in code and the results of that is you're going to bring the quality of conversation on the internet down really dramatically, and it just strikes me as such a, you know, unfortunate things to be doing at this moment in time i look at the world, david, and i think things have changed dramatically russia's invasion of ukraine, china's increasing belligerence with the west, means that world economy has to change. inflation is going to be higher because we have to rebuild infrastructure we can't allow our supply chains to be as dependent on china as they have been this is a really big change. but it's also a really exciting change and particularly exciting for tech because we do need to
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have manufacturing much closer to demand all around the western world, and this is a huge opportunity. we need to restructure our power grids, and restructure transportation that could create the greatest growth opportunity any of us has ever seen, but we have to stop the tech industry from focusing on the predator kinds of things that have worked so well in the past decade. >> what does that mean in terms of future opportunities for tech we have sort of the established mega cap tech names and they're under antitrust scrutiny look no further than alphabet and the latest lawsuit last week so what does that mean in terms of where future investment dollars are going to go and what that's going to look like for our changing sector? >> to be clear, all of this requires political leadership, which at the moment we do not have but the essential notion is that we have an opportunity right now to essentially regain geopolitical power if we can
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reduce the value of oil to the world economy and if we can make ourselves less dependent on china from a supply perspective. both of those things are really exciting because clean energy technology is just a giant growth opportunity and, obviously, if we're going to build semiconductor plants and other kinds of infrastructure in north america, that's going to require a lot of investment, but it's also going to provide huge returns and a lot of employment. so once that process gets going and we've started it with the chips act, but once it really gets going, i do think the opportunity for investors is going to be extraordinary. it's going to last for decades it's essentially like, you know, rethinking the economy and getting it focused on building american systems for american benefit and i think that's going to be, you know, that's going to be a really exciting thing once we get it going. >> roger, your comments about a.i. notwithstanding, as someone who saw the chapter of social
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media way early and invested effectively into it, are you looking for opportunities now in a.i. i mina della called it the next major wave of computing is being born. >> i'm sure he's right but i would like to see them focusing on it with much higher quality content. you know, the training sets are really the key to all of this. as long as these things are based primarily on data scraped for free from the web they will get to market quickly but produce lousy outcomes what i would love to see is systemic investment to make a.i. apply to things that are really important like health care and the like, and to get those things absolutely tuned up and working in the economy i think as we move manufacturing back into north america, it's going to be super important to have computer systems that support all of that, that reduce the costs and make these things more productive. i see huge opportunity there
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what worries me, is when you sit there and talk about chatgpt and saying it's worth $42 billion or something, i look at that and go you must be kidding me i mean, what is it actually going to do that's valuable? i can see what it does, it mucks up the internet. it's going to look like a lot of products we have today but the future to me is about making the whole world more economically valuable and not about using predatory technology to make people part with whatever assets they have today. >> a conversation to be continued for sure thanks for being with us. >> my pleasure thanks, david. big show tonight on "fast money" live from miami, where they will interview legendary investor and short seller jim chanos who has provocative takes in the past week that's at 5:00 p.m. eastern time check out the markets, a little bit of a whipsaw today dow in and out of the red. down about 40 points back in three.
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welcome back to "squawk on the street." i'm dominic chu. stocks are making fresh session los with the s&p down 35 points as we move towards the middle of the morning, but right now, we want to take a look at one of the outperformers as you can see. consumer staples, names like kraft heinz, hershey, jm smucker are higher today and colgate rebounding after morgan stanley analysts upgraded that stock to an overweight rating and named it one of their top household product picks. today's move after the company posted weaker than expected gross margins for its quarter on friday sending the stock to its worse since march of 2020. watch the consumer staples an outperformer in a down day i'll send things back over to you. >> dominic chu, thank you. a growing number of professionals are making the case for buying international versus u.s. stocks in 2023 our seema moody has more on that hi, seema.
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>> it's an under owned and under loved asset class, that is what the deputy head of macro for morgan stanley's $14 billion emerging market fund told cnbc with the 10% gain we've already seen in the emerging markets complex this year. it follows comments from jeremy siegel. >> has the worm turned so that finally we might have out performance of global stocks relative to the u.s. that very well could be in the cards for 2023. >> now, if we look at valuations just across the world, europe right now is trading at a discount to markets in asia, 14 times earnings, versus china and japan, trading at 15 times earnings india, the most expensive market to buy in asia, 25 times earnings, though india has cooled off in the past week following short seller hindenburg taking aim at adani, and its seven companies accusing
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him of price manipulation. bill ackman weighing in. i asked morgan stanley about all of this and said it's more of a short-term risk for the country. she remains bullish long term on india, the political backdrop remaining stable and the effect helping the country as well. morgan >> seema moody, thank you. after the break we're going to check in with nfl super agent f drew rosenhaus following yesterday's big games. the biggest laggards on the ndx down 1.9%. earnings names like rivian and lucid, lucid after the massive move on friday, and pinduoduo esrehimoinertech names und prsu ts rng. we'll be right back.
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the philadelphia eagles headed back to the super bowl on february 12 to take on the chiefs drew rose haas joins us to talk about his expectations for the big game and more. good to see you. >> good morning. >> so many things to talk about. there's the game itself and the
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way these offenses and defenses have played. there's some subtext about penalties today, about injuries, about emotion, anger what struck you about the weekend? >> well, i was at the eagles game and i was blown away by how dominant the eagles performed. they've been the best team in the nfl when you look at offense, defense combined. they're the most talented roster in football all the way through. but they have to go up against the g.o.a.t. today's g.o.a.t. the g.o.a.t. is tom brady. they beat him the last time they were in the super bowl, they beat the patriots. the g.o.a.t. in today's game is mahomes. what he did yesterday with a sprained ankle was mind-boggling. it was a heroic performance. one for the ages and the eagles have to be their future hall of fame coach, andy reid, one of the greatest coaches of all time, very underrated coach a definite hall of famer against a very young up and
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coming coach in nick sirianni. what blew me away yesterday was the heroics of mahomes for it the chiefs and the dominance of the eagles, especially their defensive line, it just keeps knocking quarterbacks out of games. if they do that to mahomes, this one will be over early. >> this is morgan. this is the first super bowl happening in a state with legalized gambling what are your thoughts on how that could impact the game >> i think it's great. it's about time that the nfl embraced legalized gambling. gambling's been happening in the country for decades. it's time that the nfl embraced it and made it more productive for the fans, let the players and teams and administrators and coaches benefit from it. i think they've got to embrace it all the way through and make it a part of the nfl you should be able to bet on anything you want relative to a super bowl game. how many yards a guy's going to
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have, how many tackles you think a player is going to get i think it adds to much fun to the game and i think it's awesome for football and great for business. as an agent, i love it for my clients because i think it's a whole new revenue stream incorporating gambling like this >> drew, not a super bowl question, but one i've been pondering for a bit. i watched brock purdy. obviously got injured yesterday. he very well may have a successful career as an nfl quarterback. last pick in the draft i'm a jets fan we picked our guy number two he may never throw another pass in the nfl this is, without a doubt, the most important decision made in a multibillion dollar industry by these teams with all the data that's available, how in the world do they have no idea what they're doing on some of these things? >> well, i mean, you've got to give a lot of credit to howie roseman, the eagles' gm. carson wentz got them there and
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nick foles sealed the deal once wentz got injured. now he's rebuilt doug pederson and now jalen hurts and nick sirianni. they took hurts in the second round. i think you've always got to invest in the quarterback position every year you should draft a quarterback. the niners made a great move they took purdy even though they had trey lance they could have got -- at the time they just got rid of jimmy garoppolo. but you have to constantly invest in getting quarterbacks in the draft and free agency, because you're going to strike out. and the jets' best quarterback, mike white, i think was a fifth round pick instead of the second overall pick in zach wilson. >> what is it they're not measuring properly that's my question what is it, given the importance of this decision, that some of these franchises are incapable of measuring properly to make what is the most important single decision they're going to make >> well, the quarterback position is the most cerebral position in football
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it's got the most intangibles. there are a lot of things like the ability to read the defense, the ability to play injured, the ability to lead, the ability to play under pressure. that can be hard to gauge in college. and it's very hard to combine that with all the physical attributes that you're looking at arm strength, accuracy, the ability to make all the plays, mobility, athleticism, toughness, size, strength. all of these factors the nfl, it really hinges on quarterback play, but the niners showed you can do it by building a great supporting cast. they had deebo samuel, george kittle, they trade him for mccaffrey. brock purdy wasn't beating teams. he was utilizing all the wonderful talent around him. that's why the niners had so much success, even though they were on their third string quarterback in brock purdy. >> that was amazing. his poise was amazing, even in the face of that elbow
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finally, drew, we talk a lot about the economy and whether it's softening do you think anything about that is reflected right now in salaries or or team valuations or ratings or league revenue, anything like that >> it's just incredible, but it seems the nfl is on an island when it comes to the economy other than covid, the nfl has been unfazed in my 35-year career the nfl is absolutely killing it i don't mean to sound insensitive when so many aspects of the struggle ining are, but e nfl is rocking and rolling the denver broncos sold for $4 billion. the washington commanders are rumored to be sold for possibly twice that amount, maybe $8. the nfl salary cap could go up by $20 million this year owners are just crushing it. they're playing games overseas that at a record pace, ratings
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are going through the roof they're making deals in new venues and digital and apple and amazon we're talking all kind of things with the ambling i don't know, the nfl is the golden goose that keeps laying the golden eggs. it's a remarkable thing. it's been that way as long as i can remember going all the way back to its inception. it's just been an incredible, successful business. maybe the most successful business in the history of the united states. >> that's a lot, but, drew, we'll hopefully speak again before the big game on the 12th. thanks so much >> take care. coming up at the top of the hour, don't miss our big interview with sofi's anthony noto
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before we go, we continue to keep an eye on the energy complex, specifically nat gas. it's now down 65% over the last six months we're hitting the lowest level since april of 2021. on pace for the worst month, worst january since the start of the year going back to january of 2001. of course, we have opec plus as
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well, so crude will be in focus this week as well. >> it's looking good to me as all of us have our home heating bills to think about that's go to do it for us on "squawk on the street. big cap tech losing ground this morning. certainly to be a topic on "techcheck," which starts now. good monday morning, welcome to teck czech. i'm carl quintanilla with deidre bosa and jon fortt a rate decision coming, the busiest week of earnings and jobs all on deck for the later in the week. the tiktok ceo heads to washington what that means for competitors like meta, snap and alpha. later in an exclusive with the ceo of sofi, that stock popping on a pretty upbeat forecast. >> let's get a check of the broader markets as we take a look at the last week of january. stocks today are near session lows the nasdaq isleading the

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