feel that the tour product isn't better than the other product. there's no comparison. >> jimmy, we love you. we're so glad to see you, and hope to have you back soon, because it's been far too long since we've seen you in-person >> great to see you guys >> good luck today >> thank you folks, that does it for us today. make sure you join us next week when we'll all be back together. "squawk on the street" begins right now. ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with david faber at the new york stock exchange jim cramer is in miami january jobs are a blockbuster, 517,000, more than double the estimate unemployment down to 3.4%, the lowest in 50 years wage growth, though, is in line, and participation improves you got yields up, but the two-year, still below 4.25%. our road map is going to begin with that stunning jobs number, blowing past expectations, the

strongest gain since july. plus we have a big tech triple-header, apple's steepest sales decline in more than six years, amazon's first unprofitable year since 2014, and alphabet facing increased pressures in the advertising market and ford's ceo is vowing to perform the company, the auto maker delivering a wide earnings miss, hurt by ongoing cost and supply chain issues. let's begin withthat january jobs number, jim what a combination of a huge headline number but a lot of the internals that we would ordinarily worry about in that situation aren't exactly happening. >> no. i mean, is this a great country or what? we just create jobs like no other in the world and you're not making that much more you expect a lot of upper wage pressure now, of course, we know that powell said he wants disinflation everywhere and we're not getting that disinflation, but we all marvel, and we have to sit back and take a moment, take a breath and say, this country is a job engine,

even if you try to stop it david, i have to tell you, i'm not calling this a nightmare for jay powell i'm saying he's got one thing under control, which is that wages aren't going up, but you know he likes disinflation, and until we get that, we are not going to see stabilization in short rates. they're going to keep going higher >> they're going to keep going higher to what extent? the idea there might be a pause or cuts that come toward the end of the year? how does this jobs number -- this blowout number that was so far above expectations, no one was even close to guessing it, how does it impact the fed >> well, i think the one person was right. jay powell, a lot of people felt, was off the reservation when he said we may have to do a couple of increases. so many people doubted him the other day, i called the people who said he was going to cut rates a bunch of clowns, and it's, send in the clowns, give me sondheim. i believe that the people who thought that are so wrong,

because the job growth here is stunning, but remember, he needs to see wages go down a bit, and carl, i think that when he sees that, that's when he's going to stop people could say, well, when is that and i'm going to say, when he sees wages go down because he's been making it very clear, he is not going to take any chances and try to anticipate that. and so, carl, we know a lot of people were thinking that maybe we were going to have a hard landing. those people, right now, they got to work from home. i mean, like, forever. >> well, average hourly earnings, year on year, we're now at 4.4%. prior month was 4.6% so, what number do you think, on that front, is going to be palatable to the fed >> plus 2. >> plus 2? >> got to be yeah, and then he gets it, look, that's when you have -- we, as stock people, have to anticipate it, but he is going to wait until he sees it that's why he keeps saying, higher for longer. i think that jay powell is a man of truth, and the people who try

to second guess him are people of fiction i like fact. jay powell's fact. we don't have wage cuts. when we get them, we are going to not have to tighten anymore david, why is it so hard to listen to him and reach that conclusion why do we have to second guess jay powell after he's been so right? why don't we actually give him credit >> well, because he's been wrong too, you know? everybody remembers transitory everybody remembers them being too late to hit the brakes, and so that's why, i think, to a certain extent >> and we lost some games. come on. >> i get it. i get it and right now, he seems to be engineering, at least many believe, a soft landing, not to mention, i mean, a jobs market that is truly like one we haven't seen in a very long period of time, jim, at least for this part in the cycle all right, let's move to the market, though yesterday, that move was also something we don't typically see. parabolic move in the nasdaq i mean, some of these heavily shorted names, jim, just

crushing people. at the same time, obviously, many people benefitting from the broader advance in the markets what do you think of the set-up today? was yesterday overdone obviously, we're going to talk about apple, amazon, and alphabet in a moment in terms of the impact they're going to have, but let's -- aside that, jobs number, what we've seen, and coming off yesterday, what makes sense to you >> i think that every penny of what we've seen since meta has to be given up now, there are a lot of people, actually, who even know these quarters were all disappointing, raising price targets, so it's going to be a gentle decline, not fierce but i think that anything that's happened since monday, even, with these companies that were growth stocks -- former growth stocks -- they have to give up their gains, and meta deserves it, but those others don't they talked a good game about efficiency and discipline, but they didn't show that. i mean, apple maybe didn't have

to, but they talked about cost cuts trying to keep costs down. but david, what we have here are three companies, had they reported before meta, they would have just gone down, period, and be a lot lower >> yeah. carl, you know, goldman-sachs's high conviction short basket was up 6% yesterday. one day. so, don't -- there's a lot of -- you know, obviously, a benefit to watching the market take off like that, but there are a lot of people positioned not for that, and there's a lot of pain out there. to jim's point, though, we'll see. we may not even retrace the -- any -- a lot of the gains made from yesterday, given these numbers. >> yep the ndx, 20% off the december low. the five-day outperformance, jim, of the ndx versus the s&p, only five times in the last 20 years have we seen a week like this where we've got such a return to growth and tech. >> well, i think that it's going to be wheat from chaff i think the companies will end up on short sell

here, i'm speaking about uptart or carvana, lot of those companies. >> have you seen coinbase? oh my god. >> short squeeze, david. it's ridiculous. come on. it's just ridiculous and the whole manipulation off of bitcoin -- is sam bankman-fried manipulating from his home come on. this is crazy. but before we get -- coinbase is ridiculous before we get to anything about this, david, is it cold there on the floor of the stock exchange? >> no. no >> is this a sweater thing >> what the with the sweater >> it was cold out i discussed with this our executive producer, todd i didn't want to wear an undershirt you wear an undershirt, you look like you're going to, afterwards, go repair something. i didn't want to do that >> you wear an untsdsdershirt so don't pilt >> i was like, go for the layered look it's cold out, jim you may be in miami, but it's 20 going down to single digits. >> it's amazon

it's alphabet. it's apple, and it's your sweater. the big four >> big four. let's get to the first three >> well, actually, you know, to your point, david, i don't know if you saw yesterday, the percentage of retail trading orders as the percentage of volume are now back above the meme mania >> wow >> it's -- that's an amazing -- >> that goes to some of these moves, whether it's meta or peloton or carvana or coin or way fair or doordash or tesla. >> peloton is real take back peloton. don't goad me like this. i'm in miami it's 77 and beautiful. barry mccarthy was on our air, david. you may have been taking a smoking break. >> i'm aware that you interviewed barry mccarthy the other day at 10:30 i was listening to every word of it it was a get it was quite a get >> please don't put that company, which is really -- >> we got to get to the big

three now and see how they're doing. >> okay. >> let's do it >> you've kind of touched on apple, jim, but there is this feeling or this sentiment that you spoke to tim cook, i think about operating and gross margins may be getting better after some of this squeeze >> right well, i think that, yes, i'm still owning it, don't trade it. i think this company was uniquely poorly positioned versus what happened in china. you couldn't predict it. and they -- tim is talking about macro problems, which obviously means the phones, i think, you could say, are a little expensive or people feeling a little bummed out, but i think if he had had all of the phones that he needed, we would not be talking about this shortage. we wouldn't be focused on it we would not own the shortfall we would be saying, okay, if they had all their phones, then maybe there's a little macro problem, but unfortunately, there was a strong dollar problem, but the weakness in the u.s. did strike me as quizzical, but then when i heard that they didn't have the high-end phones

and that's what we like in america, i said, okay, i can deal with it not great, not great, not what i wanted i don't think it's what they wanted because they want to be a big growth company, but 2 billion people have phones and they're going to take subscriptions, and those people are worth a great deal of money. that was the real takeaway for me david, when you have two billion, i could say, installed base >> yep >> that is -- remember, zuckerberg, the other day -- you know, normally, i would be condescending and say, your friend, zuckerberg, had 3.7 billion people that's like half the earth, right? that could be your goal if you're tim cook, and i think he's going to -- he's going to do it. >> yeah. well, to your point, services revenue continues to move up, and -- >> it was a fabulous number. >> what was it, 20.8 the number alone, just the quarterly number there sometimes you -- i always say this to our viewers, sit back ask just consider the size of these companies, because we've

never seen anything like it, even in a quarter that's not their biggest quarter. the services number. look at that i mean, that would be, what, a top 20 company in terms of revenues has to be. >> bigger. you have to look fortune 500 i'm stepping back here, but i will tell you this, david. the fin part, the financial part, was really important for that service number. and that's something tim talked about with me, but that's a surprising number. i think that when you look at apple's penetration when it comes to the wallet, it's shocking and i think that we ought to take solace, if you own apple, on that, because that's the biggest growth line there is >> yeah. i mean, the street's not freaking out, by any means, jim. it's going to -- today, deutsche bank reiterates buy. wedbush raises their target on apple today. >> can you believe those lackeys? ill advised. they all -- the number of price target gains was extraordinary, but then, i mean, we can go to

amazon, and there were huge amount, and people actually raise -- some people raised the price target of alphabet, which i think is -- maybe they know something the justice department doesn't, i don't know. >> on alphabet, which is worth spending some time, there, i do run into people who really question their ability to, you know, it's just not in their dna to cut costs in a very effective manner we know they recently engaged in some cost-cutting, but this is a company that's always been built for growth, and by the way, it didn't grow, year over year, the advertising side very rare decline. they do wonder, jim, as well about the disruption that will be brought by a.i. on the call, he talked about a.i. we know they have a strong product there. we're going to start to see a lot more of it, but even if they were to be better than chatgpt, for example, it doesn't mean that it's not going to be increased cost and potentially, at some point, sort of dislodge the typical search function in some way, and i am picking up some questions, at least, about that so, even if they're better in

a.i., their costs may be higher. curious to get your thoughts on the quarter and sort of on that side of things in particular >> i didn't like it. it was revealed as an advertising company. i thought when they talked about a.i., it was kind of like, but how about the play, mrs. lincoln i'm talking about the numbers. i really didn't like anything that i saw here, other than they may use a.i. to help advertisers. yes, assistant attorney general kanter, help advertisers i mean, i just thought this call was a total dodge, and the other bets, i'm tired of the other bets if i want to make another bet, i'll put it on the chiefs. this thing was amazing it's a broken model. it was a confusing quarter, and i am worried about the justice department, and i just think that this was the true disappointment of the evening. true disappointment. >> interesting >> advertising model i don't like it. amazon subscription, apple subscription, they're growing, and these guys are talking about youtube, i don't know, cloud oh, david, it was just not good.

>> it's interesting. you know, yeah, there's -- there seems to be a real split between the direct ad market and programmatic these days, and by the way, meta gets downgraded, jim, because in hsbc's view, the company and all of its profits are a function not just of gdp but the migration of advertising, and that's why they go to reduce >> well, i think that's just wrong. i think one of the things that zuckerberg talked about is that they have growth again you don't go against them when they finally have some growth. that quarter was devoted to how they were going to lose money in reels, next year, they will make it it was about instagram doing well, not about the metaverse. you don't have to bet against advertising if you have other things google are trying to make like the they have a fee structure and subscription but amazon web services wasn't good, but amazon ads was good. and i thought that meta is going to have good ads

you have to bet on a company ahead of time. >> so, in other words -- >> maybe it went up a little bit more because of the short squeeze. >> it does sound, though, jim, like you like meta's other bets but not alphabet's other bets. it sounds like your alphabet thesis comes down to regulation. >> well, yeah, my travel trust owns it, and i think i have to get out of it. i think it's too risky i think that when i heard a.i., i honestly thought, okay, if it's like the justice department's brief against them, they're just going to use a.i. against their advertisers. i know that's -- or the publishers that is a brutal view, but i'm saying, if you are the assistant attorney general, i am not, and they are not, of course, they're on the other side, but that scared me. they said, oh, they found out a new way to do project poirot, project bernanke these were the ones that were talked about a lot because they fooled advertisers and publishers what's the new project what are they going to call it >> i'm not sure. but i think we do have to -- a.i. is coming alive as we all

know it's not just chatgpt. >> buy nvidia. >> right, no, and by the way, jim, that's what everybody's doing. i mean, there's a reason nvidia and amd go up every day, right it's not necessarily because of the strength of their current earnings it's because of a belief that those high-end chips that you talk about all the time are going to fuel this new move in a.i. that's taking place >> but remember, amd because not have it. just jensen huang. >> that's what's been going on amd is not a beneficiary of the growth of a.i. >> they don't have it yet, no. it's all written on nvidia nvidia is the artificial intelligence platform. they will get there, but right now, all the big guys are riding on nvidia because it's just -- it's so fast and clean and smooth >> let's quickly get to amazon before we wrap this up i mean, the margin of growth expectations were down we're already playing the music? quickly, retail in the u.s. was -- >> stop playing the music. >> yeah. retail in the u.s. was good.

>> i think -- >> and you know, international, they continue to lose a lot of money. they wouldn't really go into it on the call. they were asked about it, kind of interesting, but it's a company that's doubled its revenue base from 2019 and shown no operating leverage so far profits haven't moved at all >> okay. okay i think that they -- that is exactly what they are struggling with if they were in the room, they would say, you know that guy faber, we should hire him. that's what they're worried about. but because they're worried about it, they're going to take action eventually. i think they're handling an uncertain economy okay they still have to make more cost cuts. but they also, i mean, look, i don't like where they are, but i'm bullish on their business long-term. i like advertising, which is fantastic. stores are -- they got to make stores better. they got to make stores so they're like what walmart has. >> aws, only 20% growth, jim is that -- is that going to go back up? >> it's not great. >> that's the engine of the company. >> it's not great. i'm not saying it's great.

>> well, yeah. >> i'm just saying, it's not terrible >> from 28 to 20 in a couple of quarters >> yeah. >> you know who's better than alphabet clorox >> clorox did have a nice guide. we'll get to that. we'll get to ford this morning, farley making some interesting comments about cost structure. we'll get to tesla news, nordstrom, qualcomm, starbucks, and this jobs number, 7,0 5100 jobs in january. futures a bit red. we're back in a moment piece. let me bring in my expert. mmm so many scratches... oh those are from my car keys. - such a rich history. - yeah. this won't do well at auction. but at at&t, it's worth a brand-new samsung galaxy s23. - wait really? - mmhmm. what about this? at&t's deal is back. - wow. pre-order a free samsung galaxy s23 with a galaxy phone trade-in. any year, any condition.

ford is down sharply in the premarket, down 8% company did miss on the bottom line, although revenues beat this is what jim farley told our phil lebeau about what went wrong in the quarter >> we lost about 100,000 units of production, and that's very material for us, came in late in the quarter. most of it is chips, but some, new supply issues that you could say, hey, that's just bad luck for ford that's not how we see it we could manage our supply chain all sorts of different ways. we were very dependent on broker chips, things like that. >> jim, they do see car prices down five this year as rebates go on the rise deutsche cuts to sell today. >> when you talk to farley, he's like no other ceo. now, obviously, you don't want to do what he did, but he totally blames himself he said, look, i screwed up.

i didn't do a good job i'm going to do a better job you got to bet with me now, the analysts are saying, listen, they can't handle the transition, i.c.e. to ev obviously, mary barra has done much better. but i like the fact that he said, look, i own it i didn't do it next quarter, i am going to do it, but you're going to have to hold his feet to the fire because if he does not do it next quarter, i have to sell it from my travel trust, most certainly. >> wow i mean, you've been a big supporter all along the way, jim. this deutsche bank note that carl just noted, a downgrade to sell, always worth mentioning because you don't see sells too often. they're just questioning his ability to get that $2.5 billion plus in cost improvements related to what the bill of materials. they say they struggle to wrap their around such a materials cost and ford didn't provide a program that would generate savings so rapidly >> farley will tell you it's going to be this quarter or

else he's going to do it this quarter. i'm betting with farley, because he does design the most unbelievable cars and trucks they're fantastic. the mach-e, the bronco, these are on him too let's give him that. but he has said, listen, put me to the test. hold my feet to the fire it's this quarter. so, let's see. i don't want to bet against a guy who's laying on the line and saying, this is the quarter. because if it isn't the quarter, then it's pretty clear what you have to do, which is sell the stock. >> meantime, jim, piper's got this incredible radar of wait time for the model y, and they argue that wait times spiked right after tesla cut their prices they believe that others are going to bear the brunt of that move by elon musk. >> that was an amazing piece, and i could not believe a small cut in the -- in the sticker price and voluminous orders -- look, i know that jim farley hates to ever -- don't even get

him started with musk and the competition. he know he's going for personal best musk is the winner no matter what when you go through the earnings this week, you still come back to how that man has done great things that stock, i think, is too low. i think that -- >> you think tesla's too low >> it's double the 90 days >> okay. >> it shouldn't be doing down as much as it did don't make me -- >> it wasn't a small cut many thousands of dollars. >> right, but i'm -- but i'm saying that that's remarkable. i mean, kind of like, you know, we're not going to see a super bowl ad for tesla. no look, i think that that stock, we should show a longer term chart, because, yeah, a lot of stocks made radical moves, but most of them were junk, and this one's a real company and i'm -- look at that. oh not a great chart, david i know you're a chartist but you could argue, david, that

that is a head-shoulders, but i'm going to dispute you i think long-term, that chart's okay i didn't expect that for ten-year i thought we would have a five-year. >> we'll get cramer's "mad dash," countdown to the opening bell on this very busy friday. >> it's chilly here. i got to get my scarf. >> ha, ha, ha. keatecause of your sweer ta a look at futures with the opening bell in five minutes

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the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. >> let's get to a "mad dash. of course, counting down to opening bell, two minutes from now. what do you got on there >> i want to match you can't i match you? >> okay. yeah, you can match me you're sporting it like a -- >> i don't want to block the mic. >> listen, you're where you belong >> let's go to work, david >> given your demographic cohort, you're in the proper geographic location right now. >> okay, david, let's talk starbucks. if you could get yours off as fast as i did, it would help

starbucks is the one of the -- this is the so-called disappointment they had real problems with covid in china, but the rest of the world was fantastic. america was great. europe, i think, is making a very serious comeback. the home of coffee, by the way, david, and i think that china will come back very strong, even the last month was very strong so, those who are selling this one, i think this is the one where you have to say, could you please cut them some slack obviously, they have -- this is an incredible market for them. they're going to keep building they're putting up one every nine hours let's give them a break here cut them some slack, david >> okay. all right. well, the market may be willing to do that new ceo takes over, when, a month from now >> yeah. and i think -- >> is it the end of april? >> it's all systems go here. yeah i think there's all systems go here i really, really like this stock. and i think you have to buy it the weakness is to be bought,

not sold >> let's get the opening bell on the cnbc realtime exchange at the big board, it's the american heart association you'll see star jones and susan lucci on the balcony today ringing the bell remotely from the national arts center in ottawa, canada, as we watch brett fill in fairly red my favorite starbucks metrics are, eight of the highest ten sales days ever happened in the quarter. gift cards sold $3.3 billion, more than the next four gift cards brand combined all in starbucks >> oh, and i know. 30 million people, they didn't really have a great affinity program. let's give kevin johnson credit for really getting that going.

they've got afternoon park, the cold latte i'll go through this, and as soon as i'm done, i'll switch to the cold latte david, this is not because i'm cold >> got it. >> people have to read the conference call, because if they did, they wouldn't be selling it they would be thinking, you know what this is one where i'm getting unique break to buy it before the resurgence in china. because, boy, they are really hitting on all cylinders in america and europe >> overall market, guys, of course, reversal of yesterday, although not quite as much yesterday or the nasdaq up we are down about 2% the story of the year so far has been weakness, obviously, in many of the strengths from last year, whether it's energy or pharma, jim, which both have been punished, including yesterday. seeing a little bit of life there. then i mentioned so many of these heavily shorted stocks coinbase is down 10% we talked about that yesterday

but so many of the names that have gone up so much in such a short amount of time i look at paramount and warner bros. discovery, and i wonder whether arcag os is back that guy seems to be around. is he back i don't know >> these are the ones that i don't trust. i don't trust coinbase at all, but i think you're seeing this reversion to health care, which normally makes sense if you saw we're going to have a hard landing. the economy's so strong, i don't know why you would have to rotate to those. there was one that i know you're close to merck. everyone's saying that merck was terrible you know what they're saying it was terrible they saw the stock go down it's a great company, and maybe you have to go rotate to some of the pharmaceuticals that they've thrown away, not because you think the economy is weakening but because there's value. these have become very inexpensive. i think that's really important in a market that's got a lot of overvaluation. >> sure. well, where do you see the signs

of overvaluation to your point, merck and pfizer, you know, and many of the other names, big pharma, were up nicely last year they were names to own they have not been thus far this year, but where do you see overvaluation when you talk about it are you thinking, like, unprofitable tech, things in the art fund that's gone up so much? what else? >> yeah. i mean, i'm talking about the upstarts and the carvanas, these are companies that have been really hurt. there's a nice piece in downgrade today about upstart, saying it's not the one you can own in an environment where rates are going up, but david, i'm going to give you one that i think is dramatically overvalued, foolishly overvalued, and can be sold and it's a company called nordstrom. they're doing terribly people want to own them for the bed bath & beyond effect of ryan cohen coming in there, and didn't you love this he wants to get mark off the board. triten is the man that he thinks destroyed bed bath & beyond. have you ever seen a vendetta

proxy? >> i don't know what to make of that guy i really don't i don't know him i haven't had a chance to speak with him at all. if he wants to come on and talk to us, love to do it but he's active. there's no doubt about that. he still seems to have this following, jim, whether he deserves it or not we know what happened in bed bath we've talked about it a lot. he got out nobody else did. >> but he left his followers in. the apes didn't know jane goodall was just going nuts, i'm sure, when he sold all that stock but i would say that this is a company that is doing very poorly apparently, "the wall street journal" said he spoke to some members, but david -- of the family -- but 30% of it's owned by the family. i think if tritten were to resign, i think he would go away and sell his stocks right into the six points that he just got. it's unchanged now he hates mark tritton. i've never seen anything like it he hates tritton, so he does a

proxy fight to get tritton off the board because he says that he is basically not to be trusted because at one point, he worked there and he has friends, and so why should he be the head of the compensation committee? friends like the nordstrom brothers so, he's conflicted. david, you got to read this. it's just, i think, a vendetta is not the way to invest, but you get -- he could sell right now, up five, and it's not a pump and dump. it's fine. carl, we're seeing strange action, but we also have a lot of good companies that are reacting not so badly, and i think that's something >> well, i wonder what you make of clorox today. organic up 4 street was looking for flat. they do raise their guide. their view for the year prior was about flat, now they're going flat to 3. i don't know is it still a dynamic of taking some price >> yes, but more -- there was a little bit of trade down, but they have great brands linda randall has said she's going to get this thing under control, the raw costs down.

they have a lot of raw costs that are actually plastic that are going lower, and i'm really thrilled for her because there are a lot of people who felt she could not pull this off. three out of four of their product lines did very, very well, and i'm not going to just say, david, that it's because of price. that's too much of a slight versus what was a very, very good quarter >> yeah. well, speaking of quarters that got a great response, of course, meta yesterday was a record-setter, up over 23% that's the kind of move that's rarely, if ever, seen, carl. >> in fact, zuckerberg's wealth, up $12 billion in a day. that's his biggest one-day wealth gain ever >> and obviously, the accretion of market value was over $100 billion i point it out because meta is barely down today. really, not giving back any of those gains, and by the way, apple shares are down 85 cents >> i told you, david i told you >> yeah, you did alphabet and amazon, though, are still down substantially again, off of what -- you clearly said were not great

quarters and you seem to have some concerns in particular about alphabet >> i'm not saying amazon is done i'm not saying they're done, but the decline in growth of amazon web services, david, is staggering i'm talking about 25 going to 15 this month 15% growth imagine when amy hood dropped the bomb on the microsoft quarter about azure, this is far worse. that said, prime's doing better than i thought -- advertising is very strong. they have to get their costs down, but in order to be able to have the speed to you, in order to be able to have the customer pleased, they did spend a lot of money, and they themselves are not sure yet how to unwind all that money that was spent, but i trust them i think that the -- you should hold the company i don't think you should buy it. like starbucks where i think you should buy it. and apple, i think, was fine a lot of companies ran up so much because of zuckerberg, the zuckerberg effect, and that was dumb i think the fact that apple's barely down is a sign that the analysts said, you know what we all knew china was bad. we all knew there were supply problems, so let's just move on.

i think the two billion users is game changer so, i think apple probably will be down a little more than it is right now, but i thought apple was okay >> carl, you know, i did pick up some people citing this buy with prime button with third-party websites being a real positive, potentially, for amazon. obviously, it's early days, but the ability to go to a third party website, not on amazon, but hit a buy from prime they have to keep their goods warehoused with amazon but it's new for the company to be doing that. and there are those who believe -- there was a lot of growth in that category. >> in the ad business too. still close to, well, 23% growth, down from 30%, but still pretty strong. jim, i wonder whether or not you think the home builders run is coming to an end i don't know if you saw mortgage rates, 6.09%, down from 7.08%, so down a full point with that, three million more people could qualify for a medium-price home. >> look, i was with stewart

miller, old friend, last night for dinner, and i think that you have to buy the stock when it comes in, because they're so well run, and interest rate -- mortgage rates still aren't that high, and there's still a shortage of people who are building homes they can't get all the workers they need. there are not enough homes if lennard gets up on a spike, but i think lennard is doing incredibly well. i'm putting these stocks in the growth category. i don't want to sell them, and i just don't think it's -- they have had 11 times earnings i think it's too cheap >> the other one, jim, is ark. ark, year-to-date, making sure i got this right, 42 versus the s&p, 9 you saw cathie wood yesterday on the tape saying that ark innovation fund is the new nasdaq >> right yeah, you know, i was talking to alexa the other day, and --

>> who were you talking to >> alexa alexa. >> oh, alexa >> alexa yeah i didn't get that answer that she's the nasdaq i trust alexa over cathie wood because alexa is really smart. by the way, they're trying to figure out whether alexa should stay as smart. some people feel it should just be a dumb device andy jassy wants it to be a smart device i find when you have questions about the people that think they're nasdaq, it's appropriate to go to a spokesperson for nasdaq, which is alexa siri, no >> unprofitable growth >> siri, listen. is cathie wood the nasdaq? i didn't get that. i'll try again i'll have to try it during the break. i call that a lack of humility i think it's a lack of humility. >> it is also a reflection of what has been working in this market so far this year, which has been unprofitable, but high-growing companies, obviously. >> you mean lousy companies? >> possibly.

you say lousy, i say, still on the come who knows? >> i say tomato. >> i know you do >> jim, earlier in the week, we talked about what the mike wilsons of the world think about this rally today, it's b of a, hartnett, says you got to fade 4,200 and thinks that the q1 highs will come by valentine's day. i don't hear you saying that >> well, no. i mean, i know that -- and i know david will hold me to these like white on rice, but golden cross, bank of america, not a real golden cross, jpmorgan. so, david, what do you think golden cross or not golden cross? >> don't both have to be rising, both averages? >> they both have to be rising, and that is the answer >> i don't like to talk about the things that i look at in public excuse me? >> i like the transports too much -- there were way too many stocks of companies that

would go under they should be issuing stocks. memo to upstart. issue a massive amount of stock right now. memo to carvana, i want to see a hundred million shares this moment spot secondary take advantage of these prices, because otherwise, it may not come again david, i saw carvana vending machine out there, i would rip those cars out and put a coca-cola in with the jack daniel's and coke. jack and coke. >> listen, that may be correct advice, jim. and they may, in fact, even be thinking about taking it, because why wouldn't you try if you can to sell as much equity as possible? i don't know who's taking it >> imagine if bed bath -- >> i know. you implored everyone to sell equity all along the way a meas amc did it didn't work out for the shareholders long-term >> look, there's companies -- they're going to be existential. >> boeing's gone green >> that is positive. >> we haven't mentioned the rbc downgrade today.

they did -- >> we had six apple -- >> 2.25. >> that was -- i didn't understand that downgrade at all. if you read the downgrade, it's really about supply chain and a cut of 25 max deliveries we had dave calhoun on with phil lebeau it was very clear that you can't -- we're back in that era where you can't get enough planes people still traveling, and the airlines all need more planes, and that makes sense apple makes sense because they prepped you over and over again. and my call with tim, tim cook, i didn't even bother to ask about that stuff just barely. what i cared about was subscription what i care about is fintech what i care about is all the growth things. he was very coy about the -- what they're doing with virtual reality. but it was a good quarter relative to what i feared, because only u.s. -- only u.s. phones was the area i was really disappointed in. but the subscription, carl, the service revenue, this thing is

just dynamic and it's growing, and i asked tim and luka, the fabulous cfo, when are you going to start breaking out brazil, indonesia, mexico, india they said. n not yet, but that's where they're selling their phones you don't have to just sell to china. you can sell to indonesia and brazil and make a ton of money, and india, they're opening retail stores. i think that's incredible. david, you been following the indian market lately >> no, i haven't i haven't. but i will >> it's subpar suboptimal market. but i think india, as a market for phones, is -- as retail is going to be amazing. carl, the future -- you like to have toni on, and i know he said the best of apple is behind it i would argue that the best of apple is ahead and it wouldn't be so ridiculous to think it can't go to all-time highs

within the next 18 months. >> well, by the way, the comments you made about tesla, perhaps being embraced as well, because that stock also is nowhere near all-time highs, but it's up almost 3%. it's now advanced 57% this year. there you see it on the right side >> it's not a value stock. >> jim -- >> that's an incredible move >> david, let me ask you >> yes >> while i have you, you see the letter that one of the unhappy shareholders at 3m and ft? >> yes yes. roman's under pressure now >> yeah. i mean, underperformance stock is, you know, it did trade at $166 a year ago, and it actually, a year ago today, it was at $166, and now it's at $117, and this shareholder has the guts to be unhappy >> yeah, there are -- there are not typical shareholders who are being active, more active, than

they have in the past. trying to say, carl, is that we know about activists, but there are a contingent of shareholders who typically are long only but have decided to speak up more often as well. >> they're called unhapptivists. this market, really, you know, they're going to get rid of the chaff. they're going to keep the wheat, and that's good news and that's how you ultimately get the golden cross people at home, golden cross means that the technicians are saying this market can really take off i think when you look at a meta, it's much better than expect much better. the fact that it didn't go down today is very important, but when you see a lot of the joke stocks, carl, joke stocks being, they're losing money, you know, companies that are just extraordinary to me, like upstart, what is that doing going up build.com. it's time that we recognize that it's got no clothes or sweaters.

>> as we're talking, global pmi, you see services with a slight beat there question, though, jim, if the bears can't win on a day where there are double misses in f.a.n.g., i mean, what is next week look like >> well, i've got to tell you that after yesterday's big gain in f.a.n.g., it really is rather amazing there's a lot of money, i guess, that wants to come in from the sidelines, a lot of money that was worried about a hard landing, standing to think that was wrong, and when i look at -- i swear, if alphabet's up today, i don't know, this thing could -- kryptonite. i mean, i don't know the good companies are going to trade higher but i do think that it's going to get carried away if the bad companies come back. so, let's just watch it. but i think that if you're short the market, like, we got a lot of people come on air and they're like, boy, technology is bad, and i'm not going to mention names, because i am kind

of like in the gandhi phase of my life. but they have been -- they've come on our network and scared people out of the stocks that you're posting right now, scared you out of apple and meta, and i want to hear from them where are they where are those people >> jim, it's a good way to look at things as we're right around 34,000 on the dow, holding 4,150. check bonds too. we said yields were up on the jobs number, but not a lot two-year, 4.2%, and the ten-year is still below 3.5%. we'll be right back. >> announcer: the pond report is brought to you by pimco, a global leader in active fixed income like hrv and rem sleep, so you know all you need for recovery.

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market continues to bounce off the opening lows he here we look at some of the winners of the week. the nasdaq 100, alliance in there, meta, amd up 15% in the past 90 days and lam research and crowdstrike. we'll see how much gets absorbed

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. that's a look at jim on his college tour yesterday in miami. jim, these pictures are incredible you must have had a great time >> it was a fabulous time, and i've got tell you, the u is just fantastic. i had an amazing, just like an energy epiphany. they wanted to be like us, go to -- they just wanted to talk about business every minute. they love our show they love this hour. they just are so primed to do great things i felt terrific. >> crypto at all do they want to talk crypto? >> one person asked about crypto >> yeah. >> i said it was a rake market, and another person said they rigged gamestop. absolutely but i had to talk people out of crypto by saying look, it's just a manipulated market most people still wanted to own stocks, but there are a lot of

crypto maniacs. >> you were asked about china. i imagine europe, ukraine. by the way, some of the european indices will have record closes today. how would you characterize their worry about the rest of the world? >> this was a uniquely optimistic group he they didn't really kind of say that things were going to be worse in our future. i can't speak for everyone, but there was so little cynicism in the room, just people who feel like look, we're going to go do great things and this is a fabulous country it was amazing to be with people who are just really the picture of hope. it was really terrific. >> that's amazing. how about tonight, jim >> okay. we have elf, cosmetics, on fire. beauty by the way, great read through that ulta is still going to go higher i just, look, i have to tell you, if you look at the chart, that chart is maybe one of the single best charts i've ever seen because the performance has been so good

i love being down here i had tremendous amount of work with our team, which is our team down here is amazing i'm in telemundo, it's fantastic. i'm thrilled to be down here i don't know if i'm going to come back. it looks so cold. >> oh, you're coming back. david and i will make sure of that, right? >> jim, either way, good weekend. congratulations on the tours. >> thank you. >> "mad money" tonight at 6:00 p.m. eastern time. as we've shaved the dow's losses to fewer than 100 points coming up, a lot more on the big tech earnings, apple, amazon, alphabet and the surprisingly high jobs number let's be honest. the rent-a-car industry is the definition of boring. and the reason can be found in the name itself. rent - a - car. you don't want a friend. you want the friend. you don't want a job. you want the job. the is always over a.

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also known as t-e-d. to learn more, visit treatted.com that's treatt-e-d.com. welcome back to "squawk on the street." rick santelli live at cme hq with the last breaking news of a wild week. we're looking at january release of the ism services trifecta of information. first of all, the index, 55.2. 55.2 that's pretty good 55.2 is actually the best since september of last year now let's look at the services prices paid.

67.8 67.8 that is the lightest level since january of last year remember, prices paid going down, if you want inflation to go down, well they go hand in hand that's a good thing. we had a lot of employment data this week. the services employment data, 55 right on the expansion-contraction line 50.6 was our last read in november december was under 50. at 49.4. so at least we move back to that marginal expansion contraction line on the services new orders, 60.4 60.4 that's off of a 45.2 that is the best read. well 60.4 equalled august last year to find a higher read go back to january of last year this data is definitely a bit better than expected on the service side if you're looking at the fed and implications for the market, it may mean that you see a bit of a pop in rates, which is exactly

what's occurring carl, back to you. >> all right rick, thank you. rick santelli. good friday 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 so much to absorb today whether it's the data we just got, the earnings from f.a.a.n.g. last night, the jobs number at 517 k, unemployment at a 50-year low. >> so much we're 30 minutes into the trading session. here are some of the big movers we are watching to kick off this hour starting with starbucks, under pressure after falling short of earnings expectations. this despite resilience in the u.s. with higher coffee prices it's the weakness in china amid covid lockdowns that are to blame. the coffee chain's second largest market shares down 4% another name sliding, qualcomm, mixed results and weak guidance as the company navigates weak demand for smartphones, but an excess amount of supply. you can see the shares are down about 1% they're down around 25% over the past 12 months

finally nordstrom, those shares are surging on a report that activist investor ryan cohen is taking a stake in the retailer the report says that cohen was chairman of gamestop will push for changing to nordstrom's board. those shares are up 21% right now. cohen is busy on the activist front, david >> he certainly is uncertain outcomes let's turn to the jobs number, non-farm payrolls increased by 517,000 jobs in january. let me say it again, 517,000 jobs it was so far above system, i mean, there was no one, i don't think, steve liesman, that was close in guessing that number. what happened here and what is the impact going to be on fed policy >> well, i think the first thing, david, is what's happened is, the idea that the market is made of -- the outside jobs number to see the world more

like the fed does, with threats of inflation potentially coming from a historically strong job market, dialing back the chance of a recession here are the numbers that created the pit in my stomach when like you go down a roller coaster. i couldn't believe it. up 517 estimate was 187 that looks laughable in most respects really strong revisions and there's other strong leading indicators in this report. the strong revisions is one of them up 71,000 in the past. unemployment rate. part of that is due to a benchmark revision in the population survey, but it's still low, lowest since 1969 the good news here, which kind of works against the fed, average hourly earnings up 0.3 the annual rate coming down to 4.4. it's important to look at hours worked, 34.7, up 0.3 from december the declining hours work was something people pointed to and said the job market is weakening because of that. it's right back up leisure and hospitality trying to claw back the jobs it lost in

the pandemic health care back strong, 9,000 government, that's state education workers, not on the federal level, up 74,000 surprising from the goods producing side, 46,000 with construction up 25, manufacturing up 19. and another positive indicator of the future, temporary help. back up 26,000 pointed to last month as being weak odds of a recession dropping back and chances of rate cuts diminished here. chris roughty says, half a million jobs, call the recession off. today's jobs report says this is an economy that is booming and far, far away from any hint of decline. meanwhile, the gap between the fed and market for the year end funds rate is still there, but it closed a bit from around 70 basis points yesterday to 61 today. whether fed chair, jay powell, is right or wrong about a tight jobs market, being the source of continued inflation concerns, markets look to be closer to accepting the idea that he's the one that sets rates and as long

as the job market remains strong he's going to raise them and keep them up until that's no longer the case. i have to spend a second here on the ism services when it went weak and the contraction territory last month, i became nervous about maybe this recession was coming. now that it's back up at 55 it's two-thirds of the economy, and it makes the jobs report maybe not the total strength of it, but does make the jobs report make a bit more sense in that the service sector of the economy seems to be doing well. >> so, it's good news. i get that you have a job market that is incredibly resilient, steve. doesn't that just make the fed's job harder if it is trying to tamp down inflation as it is related to wages and that tight labor market i mean, isn't there a real risk now of a wage price spiral and the fed not only staying higher for longer, but going even higher, perhaps, with the terminal rate and then staying there longer and maybe not a recession right away but pushing

out a recession, deeper recession into 2024? >> morgan, you're talking like you have a ph.d. in economics because that is the theory the theory is 100% that tight labor market, tight wage market, pushes up prices, except that when you get to reality and what's happening in practice, wages are kind of evening off and leveling off you saw the eci yesterday, the employment cost index, it came down to 1%, even while we have this very low jobs market. that is the theory, that is not only just the theory, it's the operating principle, guys, of the fed right now. so you better not ignore it because that's what fed is going to do. the question is, is the fed wrong here is there a disconnect between the higher wages and higher inflation right now? >> we'll see 4.4, the slowest growth since august of '21. pretty amazing in light of that headline st. louis. steve liesman. apple, first earnings miss,

revenue down 5 the company says manufacturing disruptions in china did hurt its ability to deliver premium iphones. our next guest keeps a buy at 175 target and says some investors are too quick to be negative on apple. citi analyst jim suva joins us today. double miss. negative revenue are you cutting them a break on fx >> carl, it's great to see my friend, and that exactly is the reason why when we think about fx, it was 8 percentage point this quarter and 5 percentage point next quarter. when you take away fx, apple is growing revenues the stock market is going to look past this people are negative and say oh, my gosh, they missed, this is very bad keep in mind, november was a very challenging month for apple with the covid shutdowns in china and in december they couldn't meet demand they missed christmas and fx is hurting them we're sticking with our buy

because fx as the year progresses will be something in the rearview mirror and importantly and critically, carl, their subscriber base is still growing and we're sticking with it, carl. >> i have to imagine, if services had missed, that would be a much different picture, would it not >> services actually beats and including the fx headwinds services grew about 6 or 7% this year, 6%, for the quarter for the year over year comparison, and that includes fx when you add back in fx that's growing double digits. services are growing great the thing to focus on not only the services because that's double the profit margin but the subscriber and user base which continues to grow. >> jim, expectation that we're going to see pushback in terms of pricing from consumers be it here in the u.s. or other markets? given the fact we have the uncertain and slowing macro economic environment

>> morgan, i hate to break it to you but this weekend you're going to spend more on your heating bill it's going to be cold. and we all know gas prices and food prices have gone up a lot, but when you break your iphone, you replace it you don't necessarily trade down to switch from iphone to android or another maker is really hard to do. the pictures of all your loved 1 ones, vacations, contacts, payments are all into the apple ecosystem. we don't see pushback on pricing. hate to say this, life is rough, inflation and everything is costing more, but when you break your iphone, you replace it. you don't trade to another cheaper phone. >> yeah. >> pretty amazing price action here, jim. apple, down in the premarket and now back to a three-month high we'll keep it tight today. jim suva at citi. >> great to see you. keep warm this weekend, y'all. >> you too. to other tech stocks to

watch, amazon and alphabet, sliding on their latest earnings report you can see amazon down 6% right now, alphabet down 2.5%. deirdre bosa joins us with more. let's start with amazon. we saw weakness not only in the core business, that's so tied to the consumer, but ongoing deceleration and aws as well. >> aws always a sticking point because this is the profit engine of the whole company, so it falling to 20% and later this year falling into the mid teens, that is a big deal and hitting some of the other cloud names in today's session, but really, like meta, both alphabet and amazon were all about those cost reductions andy jassy used the word streamlining a lot andy jassy was on the call this is the first time that we've heard a ceo on the amazon call in years, and i think it was bernstein this morning said that alone spoke volumes he started by saying, you know, now is a good time to come on. he recognizes the macro backdrop and recognizes where amazon is right now, given the overhiring and overcapacity

i think david said it earlier, it's a good point, since 2019, revenue has nearly doubled at the company but take a look at losses or that profitability rather, it has gone from a profit to a loss we saw the first unprofitable year since 2014 and that says it all. he has a very big job in front of him, andy jassy, and he was asked on the call these overarching questions because it was his first time, where are his priorities he said his number one priority is spending time with teams to reduce costs to serve, and its operations network we were a little bit light on details how they get there, but we know that amazon over the last year has been taking these billion dollar hits to get the efficiency back in place. >> yeah. and deirdre, spending a lot internationally didn't address that either when they were asked about it on the call want to move to alphabet, which has not performed badly. amazon the performer of the big three that reported last night

a lot of questions about a.i. there, a lot of questions about the real willingness to continue to cut costs given it doesn't seem to be in their dna. what are the takeaways from the quarter? >> he yeah so i mentioned, amazon's profitability. let's look at alphabet's in terms of its operating martha has fallen from about 30% to the low 20s and that's what investors are focused on there we go. it was 31% in june of '21, falling to 24% in the latest one. i heard you talking earlier this is a company that likes to cut costs. while everyone is reducing head count, amazon did the last quarter, alphabet actually added 3,500 jobs they talked about slowing pate of hiring when investors want to hear about cuts, not slowing they want to hear cold, hard cuts they have work to do here. you're right, david, that a.i. push was front and center and i got to say, it was a little surprising to me because alphabet, for so many years, has

talked ate their a.i. push it wasn't just on this earnings call they talk about being an a.i. first company for so long, long before it was fashionable, long before chatgpt, but it did feel like there was a lot of urgency on this call where sundar pichai had to sell it to the analysts he did a good job. almost all the notes i've seen this morning take note of that and say they're going on the offensive. i would only say they're there already and only add to costs, carl. >> great roundup of the names we got last night as we go to break the road map for the hour, including ford hitting the breaks stock is sliding on the latest earnings miss. >> plus, a big interview with bitcoin bull michael say dlor his company micro strategy up 100% year to date with crypto off to a strong start in 2023. >> wwe ceo nick khan will join us from post nine and we'll talk, of course, about the latest around the potential sale of that company and a lot more

with him don't go anywhere. 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.

welcome back bitcoin rallying for its fifth week of gains. one company benefitting from the hot start, or rebound, is microstrategy, up over 100% since the start of the year. joining us now to discuss, microstrategy co-founder and executive chairman michael saylor michael, great to have you back on the show. >> thanks for having me, morgan.

>> all right we're also coming off the heels of microstrategy's earnings after the bell yesterday i do want to start there you did report a loss, which was a surprise to the street, but it's tied to the digital asset in paramount losses tied to the way that bitcoin and losses in bitcoin are accounted for. walk me through with paper losses hitting $1.3 billion, does this change your strategy around bitcoin and bitcoin acquisition? >> no. it doesn't change our strategy i mean, the losses are a function of the indefinite intangible accounting treatment and, of course, an auspicious development the industry at fasby has taken a position they will move toward fair value accounting eventually we'll be able to mark our bitcoin assets to market and enthusiastic about that. microstrategy is a way to invest in the digital transformation of money, andwe're a gateway to the macro and crypto economy allowing investors to go short go long or trade the volatility.

so our strategy is to buy and hold bitcoin and the key for us is to be consistent, transparent, and responsible in pursuit of that strategy and we're unique in that regard. >> yeah. that being said, you did sell some bitcoin i realize tax laws harvesting at the end of last year would you plan to sell more if need be? >> we're always considering ways that we can take advantage of the multibillion dollar asset, and as you know, there's volatility and some unique tax treatment. in that case, we were able to generate like a $34 million tax loss, and we were able to carry it back against taxable gains. you know, we look forward and from time to time we may see opportunities, but we're fairly prudent and responsible in considering those things. >> well, i'll tell you, we're having technical difficulties right now with the shot. michael, place stay with us an we'll take a short break right now and resume this conversaon t oeridoft.ti

welcome back we're going to pick up the conversation we just started on the other side of the break and bring back co-founder and

executive chairman michael saylor thanks for your patience some technical issues and let's talk a little bit about tech because microstrategy is really essentially two companies in one. holding the bitcoin which we'll talk more about in just a moment but also, business intelligent enterprise software company as well, continuing to see some resilience in that part of the business one of the things we've discussed in the past is how the bitcoin part of the business has helped to feed or even strengthen the business case for the software part of the business does that continue, given the fact that bitcoin, and i realize we've had a rally in the last couple weeks, down so dramatically from the highs less than a year and a half ago >> well, it's been great for our company. our employee turnover is at an all-time low i think it's good for our shareholders they've enjoyed great returns. it's great for the employees and great for the customers. ultimately, the big idea here is that money is technology that allows us to transfer economic energy through time and space,

and we're seeing and living through a digital transformation of money everybody wants to move assets at the speed of light, friction-free, 24/7, 365, microstrategy's bitcoin strategy is a way to invest in that, and the enthusiasm over bitcoin is really billions of people on the planet that want to move their money faster and more frequently and they're chaffing at the restrictions of the 20th century analog finance economy. >> how are you continuing to propel that argument and potentially monetize it at microstrategy? i ask that because i know you stepped aside as ceo last year and part of the reason was to be able to focus more on this type of integration and on this type of new concept >> the most exciting thing going on in the digital monetary world is lightning lightning is a layer to open protocol for moving bitcoin

transactions and it's second for a fraction of a penny. in essence, lightning is money over ip. if you think about the world as it changed after tcip and moving data over ip and then voice over ip, lightning promises to allow millions of companies to provide transactions in real time with billions of consumers. micro strategies actually developing micro strategy lightning, our own enterprise lightning offering and we're going to allow cmos to offer lightning rewards or bitcoin rewards, like a universal frequent flier program, to hundreds of thousands or millions of their customers, all of their employees, all of their prospects, at the speed of light off of a website and so we're very enthusiastic about that. >> and you're betting there's demand for this? >> yeah. you know, like right now, companies spend billions of dollars on digital marketing they give it to google and

facebook and they spend that money on ads in order to get people to come to their website. what if you could give the billions of dollars and money directly to your customers and prospects and cut out the advertising? it might create a much less toxic, much more constructive environment. to do it, you need micro payments to move money at the speed of light friction free you can't do it with 20th century credit cards they're too expensive and slow, too much friction. so what bitcoin offers is micro transactions that can fundamentally change the way you market, change the way you build your products, and, of course, you know, if you live in africa or south america and it's saturday afternoon, you know, the banking system is not working for you. bitcoin and lightening is a monetary system that works for the entire world and never gets turned off. >> so what do you say when charlie munger, berkshire hathaway, publishes an op-ed in

the "wall street journal" and says, quote, unquote, crypto currency is not a commodity or currency, it's a gambling contract with a nearly 100% edge for the house entered into a country where contracts are regulated only by states that compete in laxity and, obviously, the u.s. should now enact new federal law that prevents this from happening >> well, his criticism of crypto aren't totally off they're a 10,000 crypto tokens which are gambling and i sympathize with them on that matter charlie and the other critics, they're members of the western elite continually prodded for an opinion on bitcoin and they haven't had the time to study it if he was a business leader in south america or africa or asia, and he spent 100 hours studying the problem, he would be more bullish on bitcoin than i am lebanon, argentina, sri lanka, venezuela and nigeria, there's no solution better than bitcoin. i really think that, you know,

the western he elites, they haven't had the time to study it, but i've never really met someone with an incentive living in the rest of the world that spend time to think about it that wasn't enthusiastic about bitcoin. >> that being said, it certainly seems like everyone is taking times right now to study the implosion of the crypto currency space overall in general we've seen over the past year, and certainly marked by the situation with sam bankman-fried and alameda a couple months ago. it's been a black eye on the industry broadly i want to get your thoughts on that and what it means in terms of potential regulation, at least here in the u.s., and whether you see that painted with a broadbrush that will include bitcoin? >> you know, the crypto meltdown, it's painful in the short term, but it's necessary over the long term for the industry to grow up. this industry has some good ideas, like digital currencies and assets moving at the speed of light that are unstoppable and a digital commodity that

can't be debased, and it also has a lot of entrepreneurs that implemented those good ideas in an irresponsible fashion what it needs is adult supervision. it needs the goldman sachs and the morgan stanley and the blackrock to come in the industry it needs clear guidelines from congress it needs clear rules of the road from the s.e.c this -- the crypto meltdown has punctuated the problem, has educated everybody on it, but also, it's underscored the idea that it's time for the world to provide a constructive transparent framework for digital assets so that we can move the financial system out of the 20th century into the 21st century. now you do work with silver gate bank issued loans to macro strategy that focuses on bitcoin to buy more bitcoin we continue to do business with the bank given the fact that in addition to the headlines today, that it is in the midst of a

u.s. fraud probe over the ftx alameda dealings, we have seen what was essentially based on filings a run on that bank >> i think they've handled themselves admirably given the stress of the situation, and yes, we will continue to do business with silvergate you know, the institutions that were properly constructed, collapsed. the alameda, the ftx, the voyager, and blockfy of the world. silvergate was a responsible bank able to meet their redemptions and if you consider the loan terms with them, we're nearly 4 x over collateralized by 25% loan to value, and, you know, the irresponsible crypto banks were doing under ka lateralized loans. they're doing banking in the responsible fashion and a good citizen for the ecosystem. >> michael saylor, always appreciate you coming on and

your insights. thank you for joining us >> thanks for having me. still to come, don't miss our exclusive with wwe ceo nick khan this is the company explores a 'rba itwl sale wee ckn o. we all have a purpose in life - a “why.” no matter your purpose, at pnc private bank we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why? (woman 1) i just switched to verizon business unlimited.

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well, we talked to jim this morning about what would happen if the bears couldn't make it work today in light of some of the f.a.a.n.g. misses. the dow has gone positive briefly intraday on pace for a 3% weakly gain, and meantime apple turned around from negative premarket action on pace for 8% weekly gains david, 20% year to date gains on apple. >> yeah. number of the big mega caps. meta up again as well. speaking of shares that are up, wwe, those shares up nearly 30% so far this year this as talks of a potential sale of the company are in the air, plus the return, of course, of founder vince mcmahon,

executive chairman joining us on a cnbc exclusive on the heels of its fourth quarter earnings, is nick khan, the ceo of wwe. >> happy to be here. >> want to certainly get to the earnings and outlook for this year, but what has captured many investors' attention is the possibility of a sale or some sort of transaction that would create value how confident are you, given you're in the midst of this process and hired an investment bank, that you will end with some sort of transaction that creates value? >> look, we feel that marketplace is robust for our product. we have a vast library of intellectual property. we have a 10,000 hour plus library of matches that people seem interested in, and it's a company that is, in essence, its own sports league that somebody could buy, put it on their platform or further expand what i think we're already doing. >> he yeah i mean, so streaming, obviously, then you think it would be potentially attractive to streamers? some say, well, is the library really something we could use? the live events are certainly

what attracts a lot of attention. >> absolutely. it's all about live, as you know, and you see the marketplace continuing to be robust for live product. we think in addition to that, the library has certainly good usage on peacock with our existing deal there and our hard core fans remain interested in that but it's all about the monthly events. >> i've done a little reporting on this because it is of interest to certain people vince mcmahon is not just the founder, he's the lifeblood of this company to a certain extent, and there's no governing vince mcmahon, so any deal, you know, you would have to deal with vince does that become an issue at all in terms of this process when those other buyers are potentially looking to take control but there's no taking control from vince >> you're right. it's tough to take control from him and he's built an empire which has been good by me and for me, but no, vince has declared to the board, to me, to other upper management he is

100% open to a transaction where he's not included in the company moving forward i really believe he's looking for the best value for the shareholders. keep in mind he's a large shareholder. he's 77 years old and i think he's ready to take a look at the landscape. >> is he involved in content re-creation? i know the man known as triple h has been running that in recent months but there's been speculation, given his history of being involved very heavily, he could once again do so? >> your research is deep on this he's not involved at all vince is not involved at all triple h remains our chief content officer. we had our earnings call yesterday afternoon, he was asked that question, triple h, and answered it honestly and candidly vince has had no interference in it since he left, since he came back triple h is in charge and we have a terrific creative team around him. >> what does putting the company essentially on the sale block while renegotiating tv rights, why does that make more sense? >> i think it makes the most sense because if we were to do

new deals for raw and smack down, our weekly programs, with let's say the incumbents, nbc u and fox it would take a number of buyers off the table. the digital companies, the f.a.a.n.g.s, if you will, why would they want content that was going to live elsewhere for another five years or whatever it might be, so now is the right time to do it. let's see what the results are on the strategic alternatives and we'll deal with the media rights >> in terms of strategic alternative, wells fargo said strategics are limited to netflix, amazon and our parent company comcast, do you see it the same way >> what do you think of the comcast thing? can you make that happen >> i hear probably not, i hate to say it. another name i hear is endeavor, bringing ufc and wwe could be robust might get a significant multiple in the market place. imagine a complex transaction. is that a snopossibility. >> i think they're all possible.

we're bullish on comcast being possible there's only so much i can say at this moment, but we got a warm reception in the marketplace from people who seem interested. >> what are your expectations in terms of timing? >> quick i'm not trying to be obtuse saying that, but it's going to be a fast process. maybe three months. >> how is the outlook for this year you shared it as well in terms of just with the ad market looks like, how you're doing in terms of ratings for your products because your numbers for the fourth quarter were down year over year. >> yeah. understood we had record revenue in 2021, record profitability we broke that record in 2022 with both revenue and profitability. we're on track to break it for 2023 we always talk about the three rs at wwe, ratings, relevancy and revenue. we think all of those are up, so we think we're in a pretty good position at this moment. >> how big is the opportunity internationally versus here? >> it's huge it's still unsnapped uk we have a robust deal, india

we have a robust deal, middle east and africa we have a robust deal there's so many other parts we haven't paid proper attention to yet we're hyper focused on i'm expecting great results there. >> you've had a relationship with our parent company through peacock, of course how would you characterize what you've seen thus far in terms of the viewership on that platform? >> a-plus. peacock as a partner, nbcu for our weekly show raw and nfc phenomenal and their push to get eyeballs, they have invested in the property that would help, you know, them wanting to push that ratings are up i think it's 45% year to year on our peacock events. so we launched in march of last year and by, you know, this match, they're through the roof. >> finally, i just want to come back to something you've already said but make sure i understand, i get pushback on the idea that vince mcmahon would ever step aside, but it's your belief that if the right deal is found, and

that's a big if, he would be willing to do so >> 100%. without question and by the way, just to correct myself, we launched on peacock in march of '21, not last year i apologize for that but with vince, 100% if it's the right deal and i think we're all going to take a look at the factors that make it the right deal f it doesn't involve him, it's no issue. >> really appreciate your stopping by. thank you. >> thank you for having me. >> as we're talking the president making some comments this morning about the jobs number and the economy take a listen. >> also learned that unemployment rate fell to 3.4% that's the lowest in 54 years. in fact, the last time employment rate was that low, was may of 1969. think about that and what's more, black and hispanic unemployment are near record lows. this matters

more working age folks coming into the labor market looking for jobs last month than have in a while. all the talk about no one looking well, need more people coming into the market well more people are coming into the market looking for jobs and getting jobs positive sign for the health of the economy going forward. and even as the job market reaches historic highs, inflation continues to come down inflation is now fallen for six straight months. gas prices are down more than $1.50 a gallon since their peak. food inflation is falling as well and inflation is coming down, take home pay for workers is going up real wages are up. wages for lower income, middle income workers have gone up even more couple that with the 2.9% economic growth last quarter, and here's where we stand. the strongest job growth in history, lowest unemployment rate in 54 years, manufacturing rebound at faster rate than in

the last 40 years. inflation coming down. real wages going up, but moderately going up, not going through the roof the economy growing at a solid clip put simply, i would argue the biden economic plan is working for the past two years, we've heard a chorus of critics write off my economic plan and said it's not possible to grow the economy from the bottom up and middle out they said we can't bring back american manufacturing they said we can't make things in america anymore that somehow adding jobs was a bad thing. well -- or the only way to slow down inflation was to destroy jobs well, today's data makes crystal clear what i've always known in my gut, these critics and cynics are wrong. while we may face setbacks along the way, there will be some, the more work to do is clear, our plan is working because of the grit and resolve of the american worker we're going to keep lowering

costs for families, from lowering costs in health care, prescription drugs, clean energy, because we've passed that legislation we're going to be rolling it out this whole year we're going to keep seeing shovels hitting the ground around the country, to rebuild the infrastructure and supply chains, manufacturing more here at home. and in communities across the country, that were too easily written off for dead, we're not only going to see jobs coming back but a sense of self-worth and pride coming back. nothing worse than when a city has a major manufacturer leave and shut down and your kid getting out of high school or college says, mom, we got to move nothing here for me anymore. nothing here well, i'm intent on changing that in the heartland as well. that's how we build an america where we can all take pride in working families have a good job and a little more breathing room as the economy grows from the bottom up and middle out, my

objective for the long haul, trickle down economics works for one group of americans it doesn't work for everybody. so this is what it's all about i'm heading off to philadelphia and if you want to ask me question about the economy, but i'm not going to answer any questions about anything else because you will never cover this. >> [ inaudible ]. >> secretary blinken >> any blame for [ inaudible ]. >> do i take any blame for inflation? no >> why not >> it was already here when i got here remember what the economy was like when i got here jobs were hemorrhaging inflation was rising we weren't manufacturing a thing here we were in real economic difficulty that's why i don't. >> mr. president - >> when and how will you remain - >> the balloon - >> when and how will you - >> that's the president taking a bit of a victory lap on the jobs number today and the number of jobs created since he took

office the best first two years of a presidential term in history, is some 12 million jobs talking about inflation coming down for six months. real wages rising again. of course it comes on the heels of the jobs number today, 517,000 was more than double the estimate goldman sachs chief economist jan hatzius, had taken the over at 300 only citi above you at 305 how can this number be, given the wage data that accompanies it >> well, it certainly was a very strong report all around, not just the jobs number, but also, the average hours number, the household survey, you know, drop in the unemployment rate, big increase in household employment and the employment to population ratio. i think it was a genuinely strong report. that said, you always have to take these outlier numbers with a grain of salt and i would say that's especially true in january because january is a very difficult month to

seasonally adjust. the not seasonally adjusted change in payrolls in january is always deeply negative, so, you know, that illustrates not seasonally adjusted employment was down sharply, as it is every single january, and that illustrates that you have to take it with a grain of salt having said that, if i look at these employment numbers, and i look at the jobless claims numbers and the nonmanufacturing ism survey, the economy is doing a lot better than many forecasters, indeed the consensus of forecasters, are saying because consensus continues to be that we're going into a recession and there's just no sign of that. >> you have a great note today on china, and the impact it will have on global growth and inflation. do you forecast a period in which we look at a resurgence of inflation and double scare that would, obviously, affect fed

commentary >> no. we still think that the trend in inflation is likely to be down, and down quite a bit we're currently depending on which indicator you look at, somewhere between 4.5 and 6.5% on inflation, and we think those numbers are coming down to the 3% range by the end of the year. that said, you look at china reopening. as far as energy prices and headline inflation are concerned it's probably one reason why that decline might be smaller than it otherwise would be. >> so the thing i keep coming back to is, we had the jolts number yesterday, this higher than expected, stronger than expected jobs report this morning, president biden talking about, you know, near shoring and reshoring and the fact that more shovels will go into the ground and essentially, there's still more money at the state and local level that is yet to be deployed from all the fiscal stimulus we've seen over the last couple years, immigration

is still limited, at least legally and boomers retiring, some structural changes to the labor market does that mean that there's risk the fed will have to tighten even more for even longer than is baked into the markets right now given the fact that it is a very different labor environment than it was a couple years ago >> we do expect the fed to do more than. we think we will get a couple hikes to the low 5s, rather than high 4s, current market pricing, and more importantly we don't expect cuts in the funds rate until well into 2024 in all baseline forecasts as you know, the market is priced for some pretty significant cuts later this year and into 2024. and it's because of some of the factors that you mentioned, but, you know, i think the broad point is, the economy is, you know, still quite strong the labor market is certainly still very strong. while inflation is coming down, even if we get to 3% by the end

of this year and maybe to 2.5 in 2024, that's still, you know, above the target, unless there's sort of a much steeper decline in inflation than what we have in our forecast, you probably are still pretty comfortable if you' you're fomc. >> you went in looking for 325 and fed chair did say here's a 25, talked ability out a couple. any change in your view on that? >> no. i think what he said was very consistent, frankly, with what they have put down back in december in terms of the plot. i think it's more of the same. the market reaction was very strong in terms of viewing this as dovish, but i don't really think it was dovish in terms of the -- at least certainly the projections for what they like to do in the near term it was a bit more optimistic about, you know, chances of a soft landing because, frankly,

the data have been consistent with the soft landing. so i think we can forgive chair powell for feeling encouraged about it. >> he did say it was a good thing and gratifying fascinating week there's been so much thank you so much. good to see you. >> thank you good to be here. >> still tojan still to come, we're going to hit the autos ford shares following post-results down 6% right now. we'll get into those details on the other side of this break

i screwed up. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. 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.

earlier in the session, this after the company did fall short of earnings estimates and a lot of other things that got some people a bit concerned phil lebeau caught up with ceo jim farley and can fill us in. phil >>. >> david, when you look at the fourth quarter, it's really execution issues that drove ford to fall short of expectations by about $2 billion where did that $2 billion go about $1 billion is because they had lower than expected volumes in terms of vehicles built 100,000 below plan and another $1 billion due to higher than expected cost. it's the cost component front and center for ceo jim farley.

>> we know what we have to go after. i would love to give you all the metrics and all the specific gaps we see but whether it's absenteeism and sequencing systems, the number of wiring harnesses we have, we know what it is. some things we can do quicklily simplifying product and make customer-facing choices simpler and lowers take a lot more time. >> bottom line, costs are going to be a big part of cutting what they need to cut in the weeks and months to come as for electric vehicles, which has been a focus for jim farley, they'll be quadrupling their production this year, but they're still not turning a profit overall on their electric vehicles though farley believes that can change and they won't have to cut prices >> we can get there, absolutely. first of all,there are two models we didn't reprice because we were careful and thoughtful and i think correct in the end

for electrifying the pickup truck and a van, both markets we dominate in. we have not adjusted to that price because we have more than enough demand. >> by the way, can you hear more of jim farley comments in our exclusive interview, the complete interview on cnbc.com shares of ford down 6% on a day where deutsche bank moved them to a sell rating, citing execution issues and concerns about the trajectory of earnings >> great to hear from farley, though very nice, phil, thank you phil lebeau on ford. coming up on "techcheck," a deep dive into earnings, alphabet and amazon on the move. alphabet up 3.5% as we have record highs in london ftse. 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.

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you'll always remember buying your first car. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. at t. rowe price, our strategic investing approach can help you build the future you imagine. one more thing before we go here this is footage captured by an eyewitness over billings, montana, on wednesday. no, thursday the same day u.s. officials said they're tracking a suspected chinese high-altitude surveillance balloon spotted over multiple sensitive domestic sites. the pentagon said it's been tracking this.

to put it in perspective, you're talking about malstrom air force base, where we house intercontinental ballistic missiles u.s. secretary of state antony blinken is going to postpone his trip to china next week following this situation he was slated to visit beijing to meet with not only his counterpart, minister of foreign affairs, but potentially chinese president xi china this morning basically saying that that balloon operating over u.s. air space was a civilian weather balloon intended for scientific research this is notable because as the pentagon and dod officials have noted in the last 24 hours, we've seen similar types of activities where u.s. territories are concerned. but it's my understanding that at least from some folks, that this is, perhaps, the first time we've seen a balloon such as this enter the lower 48, david raises a lot of questions. >> so many we don't have any time to even ask them let alone answer them

but i just -- the whole thing, a balloon. okay >> the whole thing what space satellites were able to track, radars were able to track and how we are actually going to capture it. >> capture it. well, we're captured, we're done on "squawk on the street." have a great weekend stay warm. "techcheck" starts right now good friday morning, welcome to "techcheck. i'm carl quintanilla with deirdre bosa and jon fortt the nasdaq goes pop and what the red hot number means for tech today deep dives on the results of the biggest of the big why apple turned around in today's session and amazon has not. later on an exclusive with the ceo of microchip, why the street thinks that stock is undervalued. what a friday, dee. >> what a friday we made it let's look at the markets as we close out a very busy week of earnings and economic data th