investment banking arm. walgreens popping after fourth quarter results, beating on earnings and revenues and announced cost-cutting efforts. they say they plan to close roughly 1,200 stores, including 500 in fiscal 2025. united health, shares down 5% after health insurance and services giant, dow component trimmed the full year earnings guidance due to a cyberattack and overall costs. andrew, i'll send things back over to you. >> thank you for that. appreciate it. we've got a lot more tomorrow. we'll do it all again. make sure you join us then. "squawk on the street" begins right now. >> good tuesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber. coming off record highs for do

you -- now, s&p, futures are subdued as financials beat across the board. oil falls below 70 amid reports israel will not target iranian production. our roadmap begins with the banks. b of a, citi, pnc, schwab, crossing the tape. >> plus, the race for number one and nvidia hits a closing record. it is now within striking distance market cap-wise of the world's most valuable company, of course that's apple. boeing shares are bouncing. the company is seeking to raise billions in equity and debt, of course, it's an effort to stabilize its finances as it deals with that strike. let's get right to the banks. b of a, citi, goldman, the biggest names reporting today. by the way, do not miss our interview with b of a's chief brian moynihan in the next hour. some of these charge-offs are rather mild. >> that's funny. we talk to these guys from bank of america and it's just a

consistently good quarter, and yet the stock sells at 13 times earnings. i think this is the beginning of when we start saying, either the s&p shouldn't be at 21 times earnings or the banks shouldn't be at 13 times earnings. these were really extraordinary numbers, and i think, david, you can speak to someone that almost no one else can as well. there was virtually no m&a. these companies can makethis much? >> listen, capital markets are fairly active to some extent. >> no, but you can see they're fairly active but still down a lot. >> solomon, obviously goldman sachs is going to be up rather nicely this morning after a better than expected quarter. investment banking fees were 21% higher than the third quarter of last year, but that's still not saying much. debt underwriting was one of the keys again. >> it's not saying much. i don't disagree.

>> it's not saying much, because as we've said, when it comes to m&a, ipos, it has been lackluster, certainly given expectations as we came into this year, which once again, are higher for next year in terms of all these things happening that did not occur this year. that's not where the money is being made, jim, right? >> trading is fantastic. trading is just like, jeez, bank of america had no days they lost money. no days. can you imagine? open the door, turn the lights on, make money. that's a good business. that call does not deserve this low multiple. this is a real company making just tons of money in a consistent way. i think it's time to revalue this group. >> actually, the biggest premarket gain is going to belong to schwab as some of these new assets are up ten. >> we were huge backers of schwab for the show and we were, like, why is this so hated? i mean, come on! it's a good bank with a lot of

money coming in, beatthe numbers. i mean, this is so far behind the market. this was a joyous quarter for schwab. when we had them on, we were, like, should we have them on, should they come on? next thing you know, wow, the answer is yes, it's back, bigger than ever. >> we'll talk to walt and rick wurster later at 11:00. >> i called him and said, you've got to come on. he said, done. >> we always get kind of a read on the consumer, i'm sure we're going to get a lot more when we talk about brian moynihan later on the street. >> you'll jump in, right? we'll have charlie sharp tonight. >> you do? >> yeah, i do. >> you have charlie sharp tonight? >> yes, i do. >> on "mad money"? >> first time. >> yeah. >> let me just make sure i cross that off my list. >> thanks, charlie. >> i have charlie scharf.

>> i was hoping that i might be able to -- i was hoping that i might be able to secure him and drive you insane. it's never going to happen. >> brian moynihan, how is he doing? >> on the heels of sanjay last night, jim. >> what can i say? >> can i get back to the consumer at bank of america so we can ignore you and charlie scharf? >> i'm going to get to walgreens. $38 billion, down 4% year-over-year, but up 30% from pre-pandemic levels at bank of america. >> buying back stock like there's no tomorrow. why not? $3 billion here, $3 billion there. they're buying back stock, because if you're going to give it away, they're going to buy it. >> merrill lynch, too, remember that? >> they're doing fabulously. by the way, ai -- >> charlie scharf, huh?

>> i only worked for three years to get that. >> basically said nice things about wells fargo every day for the last two years. it works. you don't need to ask. >> basically, yeah, i'm a cheap date. w what the hell are you doing? i've worked for 42 years at wall street. i call every day and finally he says, you know what, i'll come on. i said i'll come on. it works like that. >> it's a great interview, a great get. i look forward to seeing mr. scharf are "mad money." >> we talk about, the viewers were, like, i thought they talked about seriousthings. they talk about that and the mets. >> we'll move on. >> one thing is for sure, jim, if you had bought the xlf in the fall of '23, you would be up almost 50% total return. >> see, we don't know what's really out there until you look at these numbers, these wealth management numbers. and it looks like, david, a huge

amount of money is coming in. no, it's just people own stocks and they make money. these are people who didn't say quarter point, half point, sister, mother, they're not playing that game. >> one name we didn't hear from -- didn't hear from today because they didn't report is morgan stanley. wealth management is their franchise. i'm just slagging you left and right. but to your point, and we made this point yesterday, almost all of these stocks have outperformed the s&p other than morgan stanley this year. >> and maybe morgan stanley turns on the jets. >> what about the goldman quarter? >> the goldman quarter was beautiful. look, goldman is a money machine. they've added, what is it, $100 billion in market cap? i mean, this thing is extraordinary. it's a juggernaut. >> it got through a turn on equity in double digits. >> maybe you said it would never

be north of the mid single digits? >> i did, and you always remind me of it. i didn't say never, but i did question whether it might ever happen. >> maybe just as impressive is operating expense down 8%, and comp down almost 2%. >> let's fire people and make more money. that's the ticket. use ai. >> you think this is a reflection of ai re-writing the cost structure? >> david is trying to. >> early, early. >> i'll give an example. i think he would say, let's say that a client asks wealth management, would you please tell me which is a better buy, coca-cola or pepsi? in the old days you would have to go to the library, it's five months old. now you just chatgpt, and coca-cola's growth is 4%, and you're using chatgpt. it's man hours saved.

he said person hours. >> this is the chart out of morgan stanley today, jim, a report surveying 400 companies that are investing in ai. and the projects are surprising positive. >> it works, it works. and the one that really works, and i know that people are -- the analysts don't get it, the adobe conference, max -- >> i'm aware. it's a blockbuster show over there, "mad money." >> this is now in kwincorporati video. these chips are so fast. just think of it, you can just say to adobe, basically, please design a commercial for my daughter's cookies, and it will come up. >> heavy on innovation and customer excitement is what morgan stanley had to say about

that. >> sometimes the numbers are outshown by the creativity of the team. the stock is up. >> the q4 guide, a quick taste of what he told jim last night. >> through the internet revolution, the mobile revolution, this one seems way faster, and it's hard to predict. but i think at adobe all we're saying is say, how do you unleash all of the magic that the creative products do, and sit back and enjoy it. >> basically his argument is the infrastructure stack is nothing like it was in prior periods of innovation. >> no, it's insane. he introduced firefly on "mad money" and that was flat. that was pictures. now it's video. everybody can have a commercial that looks as good as, i don't know, sitting on a gold mine. >> maybe we can get those people

to redo their commercial, just use ai. >> i think when you look at what they're doing -- now, here is the dirty little secret that some creative people tell me. it makes people who aren't creative, creative. >> ah. >> most people are not creative. most people are right-brained. they win here. they win. >> no, you're going to be able to basically issue prompts that result in a commercial, at some point a tv show, and/or a movie. >> you take it to an extreme. you do that over and over again. if you want to do a commercial in instagram, we thought that you had to go to mark zuckerberg and give him $5 million. you get the new max. carl, we are all going to be able to have ads, every restaurant can have an ad that looks every bit as good as the national chain. it's all happening and it's happening right now.

>> we're going to talk more about what we heard from adobe and and micron. they're trimming the guide largely due to a ua deal. >> i talked to joe and want to take the other side of the sellers. the franchise is incredible. they have a bladder -- bladder was a death sentence. no more. now you have a tremendous level of survival from their bladder drug. finally, for people who feel like there's nothing worth living, it's working, up 55%. and against that is medtech because they had a korean doctor strike and japan is weaker and china. you can sell that stock. remember that right now you are about to get a huge win. they have 83% of respondents, plaintiffs are saying they want

the $8 billion over multiple years. they've got a texas judge, i think, that's going to go with them. you've got the lawsuit getting passed, you've got an incredible cancer franchise, a great neuro franchise, and against that you have a med tech division. so, yes, take the other side of the trade of that right now. >> how about united health? let's take a look at how that's looking premarket. the conference call could prove important and may be impacting the stock price as you're looking at it right here. the medical loss ratio was heavier than had been anticipated, at least by some. but there is this question, as i understand it, about medicaid. you had this period during covid where a lot of people were added to the rolls of medicaid, they became eligible. they have now been taken off because it really is about income there. that was starting in sort of '23, they redetermined who was eligible for medicaid. and i guess one of the questions here is the remaining people may

be more acute, therefore need more medical care. you have a one-year lag, but you get paid back by the states a year later. i know one investor was looking for some commentary on the call. the call, i believe, began about 15, 20 minutes ago. nothing we've seen so far, at least. and then you've got this other senior issues you've discussed. a lot of seniors did not get the appropriate medical care they needed during covid and, unfortunately, if you had something that could have been dealt with earlier, it became more serious, requires more medical care. that's been across the board for the insurers, for all of those involved in sort of delivering care. >> a lot of people, a lot of doctors are switching and taking medicaid to get around things. it doesn't look like it's working for unh. i have to tell you, i think unh, it's clockwork, so it is unnerving to see them go down

the humana -- >> that's a big drop if that holds. >> they did have the disruption, by the way. remember, they had -- >> with the hack. yeah, we were talking about a $560 billion market cap company, so one of the larger companies out there. >> you nailed that whole thing. i have nothing to add. >> okay. >> definitely going to impact the dow at the open. >> yeah, but, look, there's so many good dow stocks. i want to stay focused. i want my eye on the prize. >> so many good dow stocks? what pops into your head when you say that? >> goldman. >> goldman? >> yeah, i think amazon. >> apple? >> by the way, apple, did you see what apple is doing? it's trying to stay in front of nvidia. >> weren't there some good numbers out, jim? >> yes. just be quiet for now. >> we will talk apple/nvidia as the two sort of close in on

which can become and maintain the world's most valuable company. we'll get to walgreens, boeing, a downgrade of etsy, and we'll ayit some oil as oil falls below $7 st wh us.

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take a look at some s&p gainers this morning, as we come off of the highs for the dow and the s&p. dow, of course, crossing 43k for the first time. a lot of these names we've gotten to. schwab, goldman, b of a, pretty much a sweep of banks beating today. we will get to walgreens and their plan to cut 1,200 stores. cramer's mad dash and the opening bell in just about ten minutes. it's time to feed the dogs real food in the right amount. a healthy weight can help dogs live a longer and happier life.

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murphy just bought a million dollars of stock in the open market. here is a guy making a bet. now, what company is he partnered with that makes it so that he has the correct infrastructure in the data center? >> don't know. nvidia. >> thank you. he also has other stuff, pc churning. i think, when you have a guy, other than the guy who bought $100 million of southwest, in the open market, a tech company buying -- all you ever see is selling a million. here is a guy buying a million. i think that is a sign -- there's no reason to buy unless you think it's going up. there's a million reasons to sell. so i'm flagging an open market buy of an executive i've known for many, many years who is incredibly smart. and he has the optic portion of video for all of the stuff we

talked about. >> they sell to the data center, obviously, along with nvidia, and they are compatible with and help -- >> exactly. >> the units. >> i just want to flag that, because i think in the end, david, people keep saying, oh, it could be cisco, people are comparing all the different things about 2000. in 2000, you saw a lot of insider selling. i don't recall any buying. that's why i'm flagging this. >> moving up on your flagging. >> kind of a grand slam. >> we like those, we like those. thank you. opening bell, how many minutes? about six minutes away. don't forget you can catch us any time and anywhere by listeng tintohe "squawk on the street" opening bell podcast.

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and getting closer to topping apple as the world's most valuable company. speaking of apple, the company is out with a new ipad mini today. it is built for apple intelligence, an a17 chip, jim, $499. >> i think people have to understand there's going to be a plethora of new products, including health care products that are going to dazzle. in the meantime, analysts focus on this and the longer the better, we have all this new stuff coming out. by the way, i don't know about the china tax on the wealthy last night, but people who thought that china is going to be a vast wasteland, it's not going to be. >> the reports on china and xi are interesting, because the argument is he's not trying to stimulate consumer demand, he's trying to stave off a crisis at all the local governments that have tons of debt. >> i know, you've got the dave tepper situation, saying buy them all. baidu is very cheap, but i think it's more chaotic than the bulls

want to make it sound. but it's bullish to have things go up. look, it's really property that's a problem. now, i don't know how much local government is involved with property. but you have to stop the deflation. >> how about these reports that the u.s. is looking at restricting some ai chips out of nvidia and amd? >> i have a thesis on this, all right. so they're thinking about restricting the ones in the gulf. they sell almost none. but if you can get out of selling it to the gulf at a low price and put those things on the market, nvidia is going to profit from this, it's actually going to profit. because the demand for their stuff is insane. when you're listening to adobe, you know that you can't get this stuff done unless you have nvidia. >> what was your take on what sanjay told you last night? >> sanjay, he has a high bandwidth memory, data center. he's talking about a 2025 move that makes you really want to

get invested in pcs, ai pc. he's also spending a fortune and he's going to open a place in new york. he's got other plants around the country, around the world. but i think his business is booming. it is just booming. and i think that people bought it up 19%, it wasn't enough. this stock deserved to be higher. it's down 54 cents. what is he watching? donald duck? sanjay was the most bullish i've ever heard him and i've known him for many, many years. >> let's go to the opening bell. the cnbc real time exchange. argentina natural gas company, tgs, celebrating its 30th anniversary at the nasdaq. it is mongodb sharing the tenth anniversary after appearing on "squawk" this morning. >> the enterprise software group

ever since jfrog and then data dog. >> i've got it. >> mongo is not an animal. mongo is a person. he was in "blazing saddles". >> do you think that's whatit's a reference to, really? >> i'm not sure. >> anyway, enterprise software is having a move and i keep coming back to salesforce, because of nvidia. you can't tell the difference. it doesn't want to go home. >> we do have a story developing to a certain extent here on the unh numbers. we did see them, obviously we talked about the stock being down a lot. we're monitoring the call. but it's having an impact not just on shares of unh, but cvs, also down. unitedhealth starts the day down almost -- >> the big beneficiary other than amazon -- >> let me finish on that before

we get to this. cvs is down almost 4% on worries about utilization, as you night expect, sort of exiting this year in a more challenging 2025. why? well, because of unh and what they're seeing there. again, want to get more info. i know bertha coombs follows it closely for us as well, medicare advantage and the like. that does take us to walgreens, a company we've talked about a number of times, of course, in part because of the terrible performance of the company's stock over time, over any period of time. and you can see the plan now, 1,200 stores. they started with 500. it is getting a real boost in the marketplace as a result of this plan. they have a huge loss. now, a lot of that is due to write-downs, non cash impairment related to the village md acquisition. >> nasty. oh, my gosh. >> jim, the best i can tell,

they made a $5.2 million investment in village md in october of 2021, three years ago. >> that's a speed record for destruction. >> they took a hit of $5.8 billion and impairment charge of $12.4 billion, but a hit of $5.4 billion. that doesn't read well. >> no, but this is tim wentworth finally doing his magic. i think he's remarkable. he's doing the karen lynch playbook, who runs cvs, decided no more stores that lose money. that's where i think he's going. in the meantime, amazon is the great destroyer of wealth of the pharmacies. >> as we've discussed. so, again, 1,200 closures over the next three years. but they do start off in fiscal year '25, with 500 closures. as jim just said, perhaps that's

obviously a positive response they're getting in the stock market to that plan. although, i think many had anticipated such as well. >> it's good to see. there were people who were talking about that it was the next boeing. >> they're expecting fiscal year 2025 adjusted eps of a buck 40 to a buck 80. that is an adjusted number. so we'll keep an eye on the health care sector. >> they're going to make it. i think that's the takeaway. and cvs is knocked down because walgreens is going to make it. >> because of unh. >> and i have great faith in carolyn much and aetna and her being able to pull this off. this group is under severe pressure. unitedhealth is very tricky, very hard to understand. people have to know that not all companies are created equal. >> no, there's a lot of moving parts. how about boeing, jim? shares are up, we shared with you at the top. we've been talking about the potential for a large equity

issuance by the company. they make that official in terms of a filing that will allow them to do equity and debt up to as much as $25 billion. they also signed a new agreement with a number of banks to borrow $10 billion. so, that adds up to $35 billion that could be available for the company. you made the point yesterday, and it's certainly worth repeating, if you're going to sell equity, why not have done it already? and here we are and they just keep telling us they're coming. >> yeah, so poorly advised. no knowledge of what the stock market is about. maybe a knowledge of how to make a plane, no knowledge about how to save a company. there were clowns that were buying it up today, not realizing the deal is going to be done way in the hole. but they don't even know what in the hole is, honestly. they think it's underneath someone trying to sell a life insurance policy or something. >> yeah. because we've been hearing about this, carl, for weeks now, think, at this point.

they have $10 billion in cash, but that's the least amount they want there. >> when you're burning through a billion a month before the strike -- >> we have to hope that's all they're burning through. look, this company really -- i mean, to have the strongest demand you could ever have in the history of boeing and have this happen, it's really rather extraordinary. >> you made the point yesterday, we've made it a number of times, two of the greatest iconic companies in american business and manufacturing history, boeing and intel, and they are both on their backs. >> qualcomm would be interested. technically, they're going to get the money. that's why intel bounced. you're right, you've got these companies that were known as the mainstays, and you own intel because of a rumor that cristiano might buy it.

>> at this point i'm hearing very little on any real progress being made on that potential transaction that was reported sometime ago, or at least the conversation certainly took place. doesn't appear much more. >> it wasn't made up. >> no, it wasn't made up. at the same time, it's not something that is moving quickly to fruition. and i will make the point, if, in fact, there ever were to be that, broadcom would absolutely want in. >> it's fine to talk about big companies. broadcom. >> one of the biggest. a market value that is amongst the top ten, $842 billion. >> vmware is starting to kick in. they have cell phone and pc. those will kick in in 2025. >> while we're in the neighborhood, commerce signing a preliminary memo on funding and another $750 million with an

apolo led group that would build some in north carolina and new york. a couple thousand jobs. >> extraordinary. micron is putting up a $6 billion plan in new york. i hope we have enough workers to do all this stuff. we need robots so badly. it's really incredible. we just do not have enough people to do these things. >> well, we have a presidential candidate who conceivably is going to be deporting a lot of people. >> i'm not familiar with it. >> you're not familiar with it? >> djt, which has gone from $12 to $30 since september 24th. >> i'll give you a conspiracy theory. let's say you develop the short squeeze and then you wanted to be able to say that you raised more money than the other candidate and you were allowed to do -- the board let you do some sort of shelf. then you could claim you raised more money than the other candidate. >> right, that's true. there's a lot of money in that, for sure. the stock continues to move up

with the betting odds that trump will be victorious in the upcoming election. >> it's not an earnings story. >> no, it's an election story. it moves with the likelihood of a trump victory. you talked about a shortage of labor. if former president trump gets re-elected, he has a plan, he talks about it all the time -- i mean, we have a lot of illegal immigrants and he wants to deport them. do they have jobs, will that impact the labor force? >> periodically i ride the subway. when you look down the subway, there's this rail. it's not a good rail. and i'm not about to throw myself on that rail for you. >> i'm just asking you a question. >> i'm not going to throw myself on that rail. you know what, i value my livelihood. >> you're not going to weigh in on this? >> david, i'm going to take you down to the subway. you can use this now. you don't need a token. >> as you know, jim, i take the subway three to four times a day. >> what's it like down there? >> it's not bad at all.

it's fine. it's the best way to get around town. >> it's the best bargain in the world is what it is. >> i do pay every single time i get on, unlike still a lot of people. even though they have those guys now standing by the doorways. >> wait until the new turnstiles come. >> a lot of people jump the turnstile. >> that's embarrassing. >> let's come back to -- how about the google power deal? that was very interesting. >> let's talk about that. a big leader in the nuclear move. >> thank you, i have. we're talking about a deal google signed with a smaller company that has a plan to build as many as seven nuclear reactors, to do what? to help with power generation. why? jim, i've been hearing there's not enough-- the gpus sold as of now, what we have in terms of the -- we don't have enough capacity to power the gpus that

have been sold thus far. >> definitely not. >> and again, to come back to the bigger picture, which we talk about often, many of these larger companies, whether it's alphabet or amazon or microsoft, they have cashin footprint promises, so they want to use renewables. you need some sort of backup at the very least. nuclear, of course, is considered a renewable, because it is. it doesn't create any carbon and this is a new era when it comes to nuclear power. >> i would point out that cummins, which again hit a high today, has the backup -- they've got the majority of backup generators. you can't have them go down. you just can't. david, we should do our show from the data center. >> it's too loud. they're so loud. you know that. >> i don't know, we'll get noise canceling headphones. >> it's louder than when there's

a huge group here applauding. >> if we can get larry ellison to take us. >> cvs might have a little edge on us. >> they're not interested in data centers, carl. >> darn it, yeah. >> larry ellison will control cvs. >> we have a club meeting tomorrow at noon, and we just buy the companies that make it so that the data center works. >> we do have some media news. warner is going to expand max to some south asian countries, taiwan and hong kong, next month. netflix, of course, is coming this week. yesterday they said look out for a price like. >> the analysts are going to go nuts. every day a new one comes outer and says good things. i wonder whether apple will finally address apple+ on their

conference call. they just won't do it because it's not significant enough. >> well, david hasn't expressed enthusiasm as of yet. >> i have actually become a much more frequent user of apple+. years ago i did question them. >> do you know what we call you in our office? >> i'm so cranky. great show. >> we did get this downgrade of etsy over at goldman. >> oh, my god. and to a sell. i don't even know how to put it out of its misery. i did the margin compression, not good. obviously it would be difficult for anyone to buy the company. those of us who use it, we just kind of hope for the best here at this point. it's really incredible. they can't seem to get the margins right. josh silverman, useit used to s

at four times earnings. >> guys, we went through a lot of the financials at the top of the show. and as expected, goldman is up a bit. but, really, the gains at this point are muted. bank of america up 1.5%. i will note citi shares are down, jim. i haven't had a real chance, i have to say, to go through the numbers. i'm sure leslie will join us in the next few hours to go through them. citi did also report stocks down almost 2%. >> tangible book value. david, did you see theciti? tangible book value is $89, you close the bank and there's supposed to be $89 there. i need that explained to me. no one has ever explained the difference. the book value is $101. will you explain to me how that's possible? where are the regulators saying we want the gap closed now? >> moving the needle at citi has been a task, i guess it's fair

to say. the ceo is quoted in the release saying, in a pivotal year, this quarter contains multiple proof points that we are moving in the right direction and that our strategy is gaining traction. she says, including positive operating leverage for each of their businesses, share gains and fee growth. the stock is down. >> the treasury and trade solution sincerely worth a great deal. it is. it's a great division. they print money. but, you know what, i have to tell you, i look at these banks other than wells fargo and jpmorgan, goldman, i think they really measure up. it's a $5 stock. it yields 4.45%. large bank in europe. an untold story. it's fantastic. they've got great numbers. spanish bank. wow. >> the story in banking today, carl, is that charlie scharf is going to be on "mad money." >> i hadn't heard that.

>> i'm going to go up to hudson yard to do that interview. >> that is the biggest story in banking today. charles schwab having a good morning. >> charlie scharf and charlie schwab. >> get those two together. that's a show. >> the market would be doing a lot better if energy weren't down 3%. >> energy, somebody downgraded bp. why bother? >> we also had this piece yesterday that netanyahu told the u.s. they would not go after oil or nuclear facilities in iran. they pushed back a bit against the piece. >> then brent goes to the low $70s again. every time you buy these things, they come right back. i feel badly for people trying to speculate. if you are wanting to be in this group, may i suggest you just go by chevron? i know it's been a laggard? >> chevron? why not just buy exxon? >> i was thinking about yield. >> just asking. >> why do you come at me like

that? >> because somebody has to. >> how about wholesale gasoline, flirting with $2 once again. 70 days ahead of christmas. >> almost every bank ceo that i talk to mentions one of the things that's really helping us is the price of gasoline. i'm glad you pointed it out. it's really important to these bankers. it's just a major jpal break. >> speaking of gasoline, tesla shares are up 1%. [ laughter ] >> we discussed this yesterday, the fact that the robots at the big event, the robotaxi event, some of them were human controlled, at least to some extent. as impressive as they are. that happened previously as well when i unknowingly showed a video sometime back of optimus doing something with an egg and it was controlled by a robot.

>> is that like the dogs that picked up jello that i saw at nvidia? >> no, it's not fully autonomous, i guess is the point. although, when it talks to people, it's pretty amazing, anyhow. it's a key component of the investment theme that musk is stressing in terms of saying these will be on the market in the not too distant future, $20,000 to $30,000 apiece. >> jensen is stalking about everybody having a robot. i would love a robot. >> what would you use it for? >> there's a rotisserie shop down the street. >> could you see a robot trying to navigate the streets of new york city? that thing is not making it two blocks. >> i'll let you borrow my robot. >> it will get run over, it will get hit. >> charlie and i were talking about the need to have robots. >> charlie who?

charlie schwab? >> how is charlie schwab? is he coming on your show tonight? >> so, david, immigration -- >> dow is down 200, bond market gets back to work today after the holiday. empire was fairly week, the worst since may. we'll keep an eye on the ten-year, which was about 406 this morning. it's eased up a bit to 4.04%. don't go away.

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no obligation. you know medicare won't cover all your medical costs. so, call now and see why a medicare supplement plan from a company like humana just might be the answer. . election night, three weeks away. we want to invite you to spend it with us. we'll be right here at the new york stock exchange. we'll look at the numbers coming in, look to see what it means for your business, taxes, the stock market, it begins at 7:00 p.m. eastern rhterig he on cnbc. up next it's "stop trading" with jim.

it's time for jim and "stop trading request the ". >> i think nvidia has come up, you would say, lame or hung, versus apple, which is up five. my colleague, david faber gives

me an idc report about how apple enjoyed a 3.5% year over year growth in shipments fueled by strong demand from new models in the iphone lineup. that's contrary to what people are think willing and caught people short. i can't wait to be with you on election night. i've been covering the election since 1976. i find it to be the most exciting night ever. every single time they're just incredible. i remember when mississippi put jimmy carter over the top. amazing. >> you remember when truman eked out that win over dewy. >> well, the chicago -- >> he used to play golf with taft, didn't you? >> no, no. i played golf with eisenhower. which party tried to nominate

eisenhower? both. >> tonight, big show. >> well, i had wells fargo -- charles scharf has never done an interview. i've worked eight years for this interview and i got it. if he cancels, i'll go out with the demonstrators and let them give me a real beatdown. >> jim, congratulations. look forward to it. >> thank you. >> everybody does. >> "mad money," 6:00 p.m. eastern. when we come back, brian moynihan breaking down the numbers with sara. don't gowa ay.

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i've got another one. good tuesday morning. welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla and david faber. live from post 9 of the new york stock exchange. take a look atstocks.

mixed picture because the dow is down 293 points but the big story is 10% drop in united health care weighing on the dow. the s&p 500 is actually little changed. if you look -- going inside the dow, unh dragging 380 points off the dow. caterpillar another 30. chevron, 18. so, some of the weaker spots there. that's why you see a mixed picture. in the s&p, what's leading, real estate, financials having another good day after better bank earnings, consumer staples, discretionary and technology all higher. nasdaq is up a little more than 0.10%. you've got some strength in apple, for instance, on the tech side. tesla's higher today. that's all helping the nasdaq. take a look at treasuries. we reopen after yesterday's closing for columbus day holiday. the ten-year yield. under 4.1%. remember, we've been worried about higher yields creeping higher on the back of better

data. two-year yield a little firmer at 3.9%. energy as well in focus. of course, as always with geopolitics, touting a sharp move lower, on brent crude. we'll talk about all of that. 30 minutes into the trading session. here are three big movers we're watching. a number of health care names on the move on the back of earnings. dow members, united health, and also j&j among them. united health, the worst stock in it the dow and the s&p 500 right now. while walgreens is the biggest gainer on the s&p. cover girl parent coty under pressure after disappointing forecast. goldman sachs, schwab and citi all reporting this morning. we'll break down the numbers and reaction, and talk to bank of america ceo brian moynihan later this hour. top of mind in the macro setup, we got a fed speaker i always pay attention to which is fed

governor waller. he tends to be one of the leading thinkers on the fed. particularly surprised me that he backed the double jumbo cut we got at the last meeting. here's what waller is saying right now, and it's a little more waller to me than a double cut. he says, what we do not want to overreact to this data or look through it, i view the totality of the data saying, monetary policy should proceed with more caution on the pace of rate cuts than was needed at the september meeting. what is this data he's referring to? well, it's good data. it's the data we've gotten since the last fed meeting, which on balance has been better. upward revisions to growth, more job openings, better wage growth, lower unemployment rate. the chart today that i decided to highlight, guys, is the citigroup economic surprise index. so, this shows where the data is coming in relative to where the economists expected it to come in. you can see when we're below that zero line, that's when we had the growth scare and when

the data was getting worse and the fed was gearing up to cut rates. lately it's really been on the upswing and it's climbed. and we'll watch it because there's a little bit of a tick down in new york manufacturing today, empire activity was weak. still the data, carl, has looked better. and now waller, i would say he didn't use the pause word like bostic did, saying we could pause or need patience or anything like that, but does not sound overly exuberant when it comes to more rate cuts. definitely don't expect the 50 again. we'll see if we get a 25. >> we mentioned some bofa numbers mentioning weak demand on earnings call, rail car loads, the so-called corporate misery index, all of those things getting better today. i don't know if you saw the fund manager survey or if you built anything, largest jump in investor sentiment since june of 2020. >> things are looking up. it wasn't supposed to be this

way just after one little rate cut, right, in this period of the cycle. what i pulled out was the spending number from bank of america. we get a retail sales report next week. we are -- this week, sorry. and this is a consumer-led economy. so, bank of america says, we expect a spike in retail sales in september. they looked at their credit card spending. it surged by 0.6% month over month in september on a seasonally adjusted basis. gains in places that had been weak like department stores, cruise card spending was sharply higher. if we do get better retail sales later this week -- >> not dissuaded about worries by the election? >> not yet. not yet. >> that included travel, by the way. >> snacking -- >> snacking and airlines. >> ed bastian from delta also said it and i saw travel was actually up in those numbers. >> it's the september spending. so -- >> it only starts when you get to middle of october?

>> look, there's -- we'll see. we'll see if there's an impact on it, right? it could impact -- it could be one of those things that impact sentiment, not as much soft data, not as much hard data in terms it of spending. watch what they do not what they say when it comes to the consumer. even with the election uncertainty, even with the storms impacting --. >> yeah. i saw this morning tsa checkpoints gone negative year-on-year on a trailing 28-day basis. so, that's interesting. some of it largely might be due to the storms. >> sure. that's going to be an impact. the boeing strike will be an impact on the jobs report. some of the data will be a little messy. as far as commentary, maybe to your point, david, not as optimistic what's in the hard data. here's walgreens cfo on the conference wall talking about a difficult environment. the consumer back drop remains a, quote, challenge. we see this with our consumer as sales pressure in the quarter was almost entirely driven by

nonessential categories. value seeking behavior and new product launches during the year have driven our own brand penetration up 70 basis points in the quarter, finishing at over 17% of sales. and coty, the makeup company, they own covergirl, max factor, they estimated same store sales growth with a slowdown. they say beauty remains resilient in many parts of the world, u.s. market growth has slowed. look, more caution, a little bit, from the commentary. that sort of jibes with what we got in places like the beige book, which the fed pays really close attention to where they get anecdotes across the district. it has been relatively soft despite these numbers and this economic data, which continues to paint a picture of strength. it's a little confusing. >> we'll stay on top of it. let's get to the banks. goldman sachs, bank of america, citi all moving it different

directions after we got earnings from all three. leslie picker has been tracking all of them and trying to go over some of these here in the moment as well, particularly citi, leslie, in terms of the weakness there. conceivably in the stock surprise. i turn to you for some of the answers. >> that is a bit confusing to me. i've been texting with source who is are also a little confused by the move, which kind of reversed course as the market opened. all three beat this morning, but a bit volatile, as i said, once the markets opened. once again, it was those fee-based divisions. investment banking, markets and asset management that generated significant upside surprises in gains year over year. all three firms showing investment banking fees up 18% from the prior year, although those numbers well below historical averages. sales and trading were a bit mixed. equities coming in stronger across the board where fixed income, currencies were compared to a strong q3 of last year. this was a bit mixed across the street. goldman sachs kicking off its

earnings call a short while ago. ceo david solomon saying the back drop is conduciveto the business of helping clients build risk in position for a range of outcomes. >> as i look at the u.s. bam drop, u.s. economy is resilient. inflation is coming down, recent data is supportive. while weave seen some softness in consumer behavior, the tone of my conversations with clients has been constructive. the beginning of the rate cut cycle has renewed optimism for a soft landing which should spur increased economic activity. clients remain highly focused on the trajectory of rates in jurisdictions around the world. policy implications of global elections, particularly in the u.s., and high level of geopolitical instability. >> on net interest income, there's the consensus that banks have been able to weather potential headwind quite well. bank of america saying on the

call it's, quote, poised to improve with nii from here reaffirming the trough was in q2 in the rearview mirror. citi kicks off in an hour's time. you expect to get a lot of nii questions on that one. guys? >> have we cleared up anything about the relationship between nii and where it goes with where the fed rate path goes? >> i don't know if we cleared anything up. as you recall from last week with wells fargo and jpmorgan, that occupied a substantially outsized proportion of questioning on those calls. there's a lot of uncertainty as it pertains to the overall curve and changes. i think a lot of executives came into the year and the expectation was six rate cuts and that got changed. so, then there was the 50-basis-point surprise in september cut. and so i think they're a little hesitant to give clear predictions surrounding net interest income because there is

such a clear correlation to the rate path, sara. >> leslie, we'll talk more about this. thank you very much. a lot more from banks and with bank executives in the next hour. do not miss bank of america ceo and chairman brian moynihan will be on this hour, and charles schwab's incoming and outgoing ceos next on "money movers." that's an exclusive you do not want to miss with that stock up 6% on better results. >> meantime, the s&p notching its 46th record close this year. the dow closing above 43k for the first time ever. joining us this morning, rosenberg research president, dave rosenberg. great to have you. we spent the last few minutes talking about some of this improving corporate sentiment, all-time highs, people are looking for some strong retail sales numbers this week. are you able to poke some holes in any of those things? >> i would say this much, that if this was truly an earn

earnings-driven rally in the stock market, the s&p 100 would be sitting at 4600 as opposed to 5800 and change. what's happened, i think it's very interesting, and it just speaks to the animal spirits and the height of confidence that investors have, we've had a four multiple-point expansion in the forward pe multiple just over the past 12 months. i mean, we're talking about a two standard deviation of that. we've gone from 18 forward multiple a year ago to 22 right now. so, that's really what the story is. it's earnings are still going up. we're tracking what maybe 5%, 6%, year over year earnings growth for q3. stock market's up 34% over the past 12 months. so, the price action in the stock market has outpaced the actual earnings momentum.

call it by 8x. when you look back at the data going back a century, that's a one in ten event. that's what we're living in right now. a world that is extremely rare, but one where there is obviously tremendous exuberance, jub lens and confidence driving the market higher. >> if some of the activity continues to come in strong, do you think hawks are deservedly worried about a repeat of inflation or can you maintain your classic deflationary stance? >> i'm not sure it's going to reignite concerns over inflation because you can't just forecast inflation with one curve. you can't just do it through demand. you also have to have a view on what the supply side of the economy is doing. but the longer the economy stays strong and, you know, i would question, actually, the veracity of a lot of the data that had been coming out, but if your view is that the economy is

staying resilient or strong within a 5% policy rate world, then what it has the fed thinking is, where is neutral? right now they think neutral collectively is 2.78. the momentum will build at the new ral rate is probably quite a bit higher. ergo, it's not so much about inflation. it's about that the fed will not have to recalibrate to a lower neutral rate as is currently thought that neutral rate would be higher. i think that's a challenge that's going to happen via what we'll see in the treasury market going forward. it's more the impact on the neutral rate than it is necessarily on where inflation is going to be going. >> david, i highlighted the citigroup economic surprises to show that basically since the growth scare in the summertime, it's been on an upswing. things have been coming in better. i wonder what you and others have underestimated here about this economy at this moment.

>> well, you know what's interesting -- firstly, the surprise index isn't really measuring economic strength. it's measuring economic strength benchmarked against the consensus estimate. it could well be estimates were far too low. keep in mind at the same time, sara, you know, what you get in time x is not necessarily what you'll see in time y or z. i say that because we're all waxing about last week's nonfarm payrolls so any expectations as to what the revisions will look like. over the past 12 months the revisions have been squarely down three-quarters of the time. people tend to forget that you have a robust nonfarm number one month and they forget that one, two, three months later it's been revised sharply lower. the other point i'll make, it is a very interesting dichotomy between 3% gdp growth as per the bls data and what you mentioned before from the fed beige book, which showed us going into september that three-quarters of the country was either in

stagnation or contraction mode. and then i know that we're looking at month-to-month wiggles in the data but there's a lot of noise there. i'm looking at the same data you are. i'm looking at it on a year-over-year basis. let's look at the trend. the trend in retail sales volumes and in home sales and in auto sales and industrial production and in inflation adjusted core capex orders and shipments on a 12-month trailing basis, they're all flat to negative. now, of course, these are private sector data. and the beige book does not interview the government. it's a private sector piece of information based on anecdotes but it does go back to 1970. but i think what -- you asked what i missed. what i missed is the fiscal deficits that are still providing support to the economy. i was not factoring in 10% growth in government spending. i was not factoring in for the second year in a row that the

deficit gdp ratio in the united states would be north of 6%. so, we're going on about the economy and about american exceptionalism, but it's really more about the ongoing government incursion in the overall economic data and all the multiplier impacts. there is no real exceptionalism here. the average oecd country right now is running a 3% deficit gdp ratio. the united states continues to run a deficit gdp ratio in excess of 6%. that has an influence on gdp because government is part of gdp. if you're going to ask me, where was i off base? that's where i was off base. i didn't think we would be running up the fiscal tab as much as we have over the past year. it's rather astounding. >> and implications, of course, for the election we'll have in three weeks. david, more next time. appreciate it, as always. good to talk to you. david rosenberg. as we go to break, road map

for the rest of the hour. boeing taking some big steps to shore up its balance sheet. we'll get you some details. >> health care stocks getting hit on the back of key earnings. dow member united health care key amongst those. what investors need to know. an interview you do not want to miss, bank of america chairman and ceo, brian moynihan joins us first on cnbc to talk about the company's latest earnings outlook, what he sees in the economy and with the consumer as well. big show still ahead. "squawk on the street" will be right back as the s&p joins the dow in negative territory.

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welcome back to "squawk on the street." boeing is making moves to strengthen its financials. shares are down 40% on the year. phil lebeau joins us with the latest. busy morning, phil. >> busy morning. two moves from boeing, carl, we'll talk about. first of all the company announcing it has essentially opened a $10 billion credit line set up with four banks. they haven't tapped that credit line yet. the other moving boeing has announced is a $25 billion shelf registration. extends over three years. they've got three years to use this as the vehicle ultimately saying, look, we may raise equity, we may raise debt. they've got the moves in place now so that when they decide to tap either of these, they'll be able to move as quickly as they deem necessary. so, what they want to do here is to have the means in place in order to come up with the money to help out their liquidity.

when you look at their liquidity, the end of the second quarter with $12.6 billion in liquidity. most believe they're now down closer to $10, $9.5 billion. they don't want to go much below $10 billion. they've said that's the bottom as far as the threshold, once they cross that, they'll have to look at raising capital in some fashion. the debt level at the end of the second quarter was $52.3 billion. remember, they're just a hair away from being moved down to junk status by all of the credit rating agencies. what happens with the strike? that's the big question here. it's 33 days long. there's no indication that it's going to end any time soon. more than a few people have said, look, don't be surprised if this goes into november. and the cost right now is estimated to be about $1 billion per month. that's one estimate that is out there in terms of the impact financially for boeing. so, as you take a look of shares of boeing, keep in mind that

they report their q3 results next week. they preannounced on friday. we know the numbers will be ugly. the question becomes, what other greater detail do we have in terms of liquidity level as well as debt levels at the end of the third quarter. again, that's the results that we get next week. guys, back to you. >> meantime, phil, any suggestion that the machinists are going to get back to the table with management? >> no. no. no suggestion of that. we know that the labor secretary was out in seattle meeting with both the union as well as the company. look, everybody believes that boeing needs to get back to work as quickly as possible. the country -- you hear this all the time from people. the country needs boeing to work. well, that's fine but the machinists on the line, their opinion is, 30% is not going to cut it. we need more than 30%. and there's no indication, based on their most recent negotiations, that the company

is willing to go substantially above that. >> backlog is still there, i guess. if there's one bullish thing or positive thing to say, is that it? >> that is it. look, the production level, david, on the flip side, they're not going to hit 38 per month in terms of the 737 max. that's the target that was out there at the end of this year. they're not going to get there. so, you're not going to get the 38 per month. how long will it take you to get the 38 per month. by the way, that's the cap that has been set there by the faa. you want to go above that if you're boeing. the faa will have to approve that in the future. >> i'm just doing the calculations. i mentioned this earlier. november 1st is the october nonfarm payrolls report, which comes right before the fed meeting the next week. phil, i mean, it will impact the data, right? you should see this in the unemployment rate. >> yes. >> maybe we're already seeing it in jobless claims. >> absolutely it will have an impact. you're looking at about 33,000

striking machinists right now. and as you know, when these unions go on strike, we saw this with the uaw last year, they are often reported as, you know, no longer part of the payroll. that impacts the jobs number. >> phil, thanks for that. a lot going on. a lot of boiling pots watching one of the world's largest manufacturers. thank you, phil lebeau. google, the biggest tech name to bet big on nuclear energy. a quick programming note. we are three weeks away from election night. we want to invite you to spend it with us. we'll be at the new york stock exchange, watching the numbers coming in. breaking down what it means for taxes, the stock market, small business. that begins at 7:00 p.m. eastern time on november 5th right here on cnbc.

welcome back to "squawk on the street." tech is the leader this week. up more than 1% and adding to big outperformance on the year. big part of that rally has been

software. ishares tech software etf ige hitting all-time highs, back to its inception in 2001. those names driven by palantir, oracle, servicenow all outperforming the s&p. google is the latest tech fwint to go nuclear to meet power needs for data centers in a.i., striking a deal with a nuclear power startup. let's get to pippa stevens with more on how big tech is breathing new life into the sector. who would have thought nuclear is back, pippa? >> sara, google's announcement is a new chapter with tech partnering with nuclear because it's the first time a hyperscaler is directly backing a new power plant. this one with small, modular reactors. it comes as big tech companies race to secure the insatiable power needs. google's deal is the latest example. we also had microsoft teaming up with ton city lags energy to

bring three mile island back online while amazon bought a data center from talon energy powered by the susquehanna power plant. bill gates and sam altman, chairman of nuclear companies. jeff bezos has funded an infusion company and jensen huang has called neutral an integral part of the a.i. future. the friday hindustry hopes goog funding several will send an important signal and lead to more demand and buildout. >> thank you. brian moynihan joins us next with that stock higher and financials in the lead in today's market. despite some big losers on the dow. united health, we'll talk about that as well, shaving 318 points off the dow. don't forget, you can catch the 10:00 a.m. hour of "squawk on the street" any time, anywhere. listen to and follow the "squawk on the street" podcast.

it's available on spotify, apple music and more. wee ckn mont'rba ia me.

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welcome back. i'm silvana henao with your cnbc news update. lawyers representing survivors and family members of maine's deadliest mass shooting have begun the formal process of suing the army. a new claim filed today, they accuse the army of being aware of the shooter's mental health decline when he was a reservist and not intervening. he went on to kill 18 people in lewiston, maine, last october. the army has six months to respond to the claim.

the pentagon said today components for an advanced antimissile system began arriving in israel monday and would be operational in the near future. president biden has said the system would defend israel as it weighs a response to iran's ballistic missile attack earlier this month. a group of 49 house democrats are sending appeals to fortune 1,000 companies to keep their diversity, equity and inclusion programs intact. the email campaign led by california representative garcia comes as several corporations from ford to john deere and lowe's dialed back dei initiatives, sara. >> this is headed for a reckoning. thank you very much. turning back to it the banks. bank of america shares are heading higher after beating estimates on strong revenue. bank of america chair and ceo brian moynihan joins us here first on cnbc to break down the quarter. welcome back, brian. nice to have you. >> it's good to be here, sara. good to see you.

>> you, too. i mentioned the investment banking and trading, the net interest income was a beat. how do you characterize the environment that you're operating in right now? >> perform well year over year whether it was our wealth management businesses because of increased fees in that business, whether it's the investment banking performing better than we thought even a few months ago or, more importantly, the sales and trading business. we've done a good job and had their tenth consecutive quarter of year over year growth. we feel good about the market business but the key to the quarter is also what we're seeing on the net interest income. we've seen it -- we call it a bottom in the second quarter about three or four quarters ago. it turns out to have been a bottom. this quarter it was 14.1. a company that gets 55% of its revenue from that area and it's

all pure profit as it improves, that's a good sign for our company. >> yeah, i mean, there's so much focus on this from the analyst and investors, where net interest income goes, especially in a world where the fed is lowering rates. so, to what degree does bank of america get hurt by lower rates if you expect net interest income to continue to rise? >> it's a conflict question but we disclose our sebstivity beyond the curve. we don't make it up. we take the market's curve. we see growth in nii for the fourth quarter and beyond. we feel good. it's a very complex thing because you have fixed rate assets. we have noninterest bearing deposits that get squeezed, you reduce the rate on interest deposits. at the end of the day we disclose all that. you put it all together and nii is growing, which is the important thing. important thing is loans and

deposits are growing and loans grew, especially in the latter part of the quarter. we had a nice pickup. >> that's been sluggish overall. you expect loans to continue to grow? >> well, the loans on the commercial side have been sluggish largely because the rapid rate increase really affects small businesses and middle market companies. used lines of credit, our floating rate above an index. that index went up over the last 24 to 36 months by 500 basis points. it came down a little bit at the tail end of last quarter. we'll see that come through. the line usage, which is use of those lines is much lower rate than it was prepandemic or normal times. let's just call it that. that's because companies have to be careful because the cost of borrowing went up. that's the restrictiveness of where the rate structure is now. the real rate structure affects consumers some but really affects small businesses and midmarket businesses much more. >> given all of that and all of these investor questions around the rate outlook, brian, what

rate environment would be best for bank of america? >> at the end of the day our job is to make money in any rate environment. what we believe at the team, and our research team, they do a great job, they believe there's two more cuts this year and we end up with a terminal rate about 3% at the end of next year. that's the important thing, whether there's a cut this quarter, next quarter, 25 or 50, there's a lot of work going on. we have a lot of people who analyze that a lot. but the reality is, where is it going to end up? if it ends with with a terminal rate at 2.75 or 3.25, that's a wholly different environment than we've been at since 2008. that difference will put -- is really oat strength of the u.s. economy, the fact that the innovation and capitalism that goes on in this country drives through and allows higher rate structure to finally be there with inflation being controlled. you're seeing inflation come down. that would be a good thing for the u.s. and, frankly, a good thing for the world. >> were you surprised they kicked it off with a double rate

cut going 50? >> i think everybody is a little surprised. i think the data showed the slowdown was occurring the fed's risk was more to the downside now that they are too restrictive for too long and that then cuts off the economy. right now, as we saw the consumer activity in our client base in the third quarter and in the month of october so far, it is more consistent with a 2% growing economy and low inflation economy growing at 4%, 4.5% nominally per year. that's a good place. it did soften a little in the summer. in june, july and even august where i was getting worried we were down at 3, 3.5. that number could indicate the consumers are giving up. consumers are still spending, each quarter it's a little different but overall the amount of money they're moving in, 60 plus million consumers moving a trillion every quarter, it grew 4.5% last quarter.

and is still growing at that rate. that means the consumer is still in the game and spending, which fuels an economy that's stable. but we have to be careful that we don't choke it off. that's where the higher interest rate impacts car borrowing and other things affect them. >> i notice that in your results, lower net chargeoffs in credit cards from 3.7 to 3.88 in q2, which would appear to be improvement in the health of the consumer. >> yeah. and that's the case, it's stabilized and improved. one of the things we had as an industry, our time is getting people's mind around is the pandemic had an interesting affect on credit quality in the industry. we put up a bunch of reserves in 2020. we took them back through the p&l in '21 and delinquencies fell because of all the things going on, delinquencies fell. they're back up to levels that are consistent with where they were in more normal times. those levels are long-term lows

in our industry. the credit quality is very strong. people think they have to come up with some great scientific theory. while that's true, the reality is people are employed and people continue to earn money. as they continue to earn money, they pay their bills. that's what the american consumer does. unless there's a major spike in unemployment, and we set our reserves as if unemployment is going to 5%. unless there's a big spike in unemployment, you won't see consumer delinquencies move at all, but the reality is, they flattened out and actually came down a little bit showing the maturity of the delinquency is there after coming off all-time lows, frankly, after the pandemic. >> last time we spoke to you, brian, last quarter, the question was sort of recession or soft landing. this time i feel like it's soft landing or no landing. where do you stand? >> well, people accuse me of always say the economy is stronger than people think and i got worried last quarter as i saw the consumer slow down.

from what we see and experts tell us, we took -- no landing might be the best choice if you're thinking it gets down to 1.5, 2% growth, which is where it was for a lot of years prior to the pandemic. if we can glide into that level and keep the inflation, which is down a lot now, continuing to move down, that would be a no landing. in other words, we never had a real bottom off the -- getting down to no growth for a quarter or two. that's real good. the question, there's a lot of things that can go wrong on that path. there's existential factors out there, extra factors, extra territorial factors, used to describe some activities in the middle east, all of these things could derail the economies in the world. right now if you just put those as being something we can't control and can't drive, what we see from our commercial client base, very solid and good and consistent with low growth, low inflation economy. >> i was going to say, no landing with no flare up in inflation? that's really the sweet spot, isn't it? that's what you're expecting? >> it would be.

right now our experts have gdp rate drifting down to around a little below 2% and work its way back up to 2% over the next five or six quarters. inflation getting down to the right the level people want it, early part of '26. that's -- that's consistent. but the fed has to keep moving the rate structure and responding. inflation is down a lot from where it was. but they've got to finish the job. on the other hand, they can't choke off the economy. that's what you hear in the market every day, people having two sides of that trade. it will go on until we're at the other end of that. hopefully it happens over 2025. >> yes, we talk about it all day long. brian, i wanted to ask you about investment banking because fees were strong there. goldman showed good performance. do you have a sense given the pipeline of what the 2025 outlook is for investment banking? >> well, this is always dependent upon -- you know, we follow our clients. if they have an appetite to buy,

m&a fees are strong. the debt markets are strong. if they have an appetite in ipos come back, the equity market. we all thought this was going to be a slow quarter. so, we all went out and said that in the industry and our company. we did better than that which shows the underlying strength of the activity is good. at 1.4 billion, 1.5 billion type of numbers, that's consistent with where it was in a normal quarter. we run up to 2.5 and that was driven by the refinancing going on in a low rate environment. the pipeline's full. the activity level is high. people are out there thinking about deals, trying to do deals and activity around that. the ipo markets are, you know, moving to being open a little more. and that is all good things. at the end of the day, the capital formation of the u.s. capital markets is the key for not only u.s. but the rest of the world. >> what do you think it will take to get a more robust ipo market and increased m&a? is it lower rates? is it the election?

>> well, i think certainty around -- as rates come down, the financing costs for a deal go down so markets will pick up. certainly getting deals through. we've spoken about that before. it has been a constraint on activity because people worry if you put a company under contract, it takes a year, year and a half to get approval, there's a lot that can go right with companies. if people could move the process along faster, analyze deals, deals they don't like, but at the end of the day, the length of time is one of the great uncertainty factors we see. whether it's in our industry, not that we can make any acquisitions, whether in our industry, financial services or other industries. >> i caught that on the acquisitions. speaking of ipos, tech, a.i., it's obviously captivated the market. you talked about it a little bit today and how you're incorporating it into the business. how much of an impact is it for you on performance at this point? where does that go? >> well, you know, the a.i. on

one day, it's going to change everything tomorrow morning and the next day it basically is not as real as people think and everything in between. the reality is, it's already here. it's already working. it's a movement forward off another type of machine learning and digit ization today. our product called erica, which interfaces with customer, 2 billion interaction. if you look over the last four, five years, it's been out there. it's saved 2,000 persons per year in work. half the arctivity is insights, getting people to work with it and half takes out work that's been done by a call or text. it's taking out work. we take that activity doing moreau teen tasks and put it somewhere else. in the area of computer coding, we implemented across thousands of computer scientists who are using it and learning from it and bringing it out of pile and into full operation.

we see it a lot of places. anyplace where you have data transformed and put back into a memo or data transformed and put back into pitchbook or another spreadsheet or financial report, we think it has great . we have high hopes for it but it's going to be a little slower than people think as we learn how to use this activity even more and more across our franchise. >> slower. i was going to ask you how you think the a.i. hype is going to live up to expectations on how it might transform a bank like yours and the financial metrics. >> well, it's going to help -- if you look at our company through machine learning and digitization, in 2010 we had 295,000 people. we peaked at 300,000. that's due to all this work.

it will continue that trend. meanwhile, we keep repositioning resources from work that goes away to work that needs to get done. we've been lucky to manage that. if we basically have a chance to not hire 1,500 a month if we don't want to and head count can come down. the human side we try to manage but the application side we try to push very hard. it is clearly not pifle here. this is really an important trend in business. on the other hand, it's got to be used right and managed right and made sure we can actually apply it with the discipline, integrity, compliance rules and customer experience we want at the same time. >> another big trend we've been talking about here at cnbc and in the markets is private credit. looking at your page 27 disclosures, on commercial credit exposure, 27% jump year over year in loans to finance companies. how do you view it? is it an opportunity for growth or ultimately a threat for your

business? >> at the end of the day they're providing credit sometimes we can't provide because of the amount of leverage a fund can take versus us. what gives us the strength in commercial banking is the customer relationships, the operating accounts, the lines of credit. and also the ability to work with customers when things go bump in the night. i think that will hold us in good stead. we've always sent credit off our balance sheet to other people, whether it's other banks or other investors. we'll continue to do that. and they're competitors. they're looking to try to do sort of a deal to take it down to the mezzanine to all the different tranches to the term financing. that's competitive. at the end of the day, a company like bank of america with the talent and teammates we have, we can compete against anybody. >> finally, brian, i know you got this question at the barclays conference when we were there a few weeks ago, but berkshire hathaway continuing to sell shares of bank of america, now under 10%. it doesn't have to disclose

more. but it's been going on for months. you said you haven't spoken to buffett. have you since and do you have any sense of why? >> you'd have to ask mr. buffett and berkshire that question. you know, i haven't spoken to him about it. he's been a great shareholder. he invested 700 million share equivalent in 2011 and another 300 million in 1819. he sold down. he still has a lot of shares and he's been a great investor and helped our company in 2011 at a difficult time. if you invest in our common stock, you would have fared the same as he did. he's been a great investor and supporter of our company. i'll let you ask him that question. >> i'm sure we will. thank you for joining us on earnings and talking through all those things. >> thank you, sara. good to see you. >> good to see you, too, brian moy moynihan, ceo and chairman of bank of america. the big headline is he got the headline, no landing from brian moy moynihan, which a lot of

people -- he's always been more optimistic than, say, a jamie dimon in terms of what we see in the environment but he backs it up with the consumer data. he said a quarter ago he was more worried about it and now he says things have stabilized. >> to that point, he's been right to be more positive than some other -- >> that's why the market outperformed and the economy. >> let's get to some health care names moving. chief among them, united health group. bertha coombs has key takeaways from all of that. >> good morning, david. united health's third quarter results beat on the top and bottom line, but high medical cost trends are weighing on the stock. on the call the cfo said they're continuing to see aggressive upcoding by hospitals. that means making patients seem more acute in order to charge higher rates. also an unexpected increase starting this summer and continuing now of expensive brand names being prescribed which they attribute to the out-of-pocket caps from the

inflation reduction act for medicare patients. which they didn't think would be as big a factor until next year when that cap goes down to $2,000. as a result, united is lowering the high end of guidance for this year amid higher cost for the cyberattack this year. anticipating full year 2025 earnings below the street's estimate. as united goes, well, so go its rivals this morning, likely experiencing many of the same issues. johnson and johnson beating on top lines, beating on oncology and immunology drugs, and weakness in asia as they continue to pose headwind. meantime, take a look at walgreens, saying the best gains in four years as earnings beat on top and bottom line. among the highlights, the health care unit, which includes village md where they made a lot of cuts posted positive

operating income. offsetting continued headwind in pharmacy. to that end, the company is going to close 1200 stores over the next three years, shrinking the footprint by 14%, which ceo tim wentworth says will be immediately accretive. back over to you. >> thanks, bertha. that village md deal for walgreens, just a terrible waste of shareholder money. $5.2 billion. want to come back to united health, though. on the conference call brian thompson, the ceo, talked about upcoding to inpatient stays versus what they feel is more appropriately billed as outpatient. what is he talking about there and what does that mean? >> we've been hearing for a while that inpatient stays, in hospital is one thing driving up medical costs. there are different rules that have shifted where patients can stay longer. it's called a 24-hour rule. and also they claim that

hospitals are upcoding, meaning, you know, if you have diabetes, they might add a cardiovascular, they might add something more acute, which allows them to charge more. so, that's what they are saying is happening with hospitals. of course, if you talk to the hospitals, they're saying that, you know, the insurers are putting too much pressure on them, not paying them as much for their care. that continues to be a friction point here. carl? >>bertha, thank you very much. bertha coombs watching some of the health care stocks. meantime, we do have some activity in tech. nasdaq was down about a percent a moment ago. shares of asml dropping sharply on their guidance. for that we'll turn to seema mody. >> this is the dutch microchip equipment maker reporting earnings that came in better than expected but its guide for 2025 is weaker than what wall street had anticipated. it expects 2025 total net sales to be between 30 to 35 billion euros. the street was expecting around 35.8 billion.

we have comments from their ceo. while there continues to be a strong development in upside potential in a.i., other market segments, he says, are taking longer to recover. it appears the recovery is more gradual than previously expected. asml is a key supplier to nvidia, taiwan semi, and makes a specific microchip that other companies cannot make. this will be an interesting read across the entire semiconductor sector as we watch nvidia trade in record high territory. >> not right now. nvidia down 4%. amd as well. do you believe it is on this -- related to this news? >> it may be. expectations have been very high, david, going into earnings season. asml today and taiwan semi, which reports in about 24 hours. given the whole story around demand, those comments from jensen huang about demand for blackwell, expectations have been high. >> yeah. well, again, nvidia and amd both down. asml down a lot more than that.

seema mody, thank you. would point out as well, when we came into the session this morning, nvidia was creeping up and market cap towards apple's $3.5 trillion. that disparity has actually grown given nvidia's 4% loss. apple shares up some 2%, perhaps on data from idc we got this morning as well. you can take a look at nvidia. apple shares benefiting from a nice move higher this morning. up some 22.6% for the year. interestingly, right in line with the performance of the s&p, which though down a bit this morning, is also up 22.5%. our live market coverage continues afr isteth. with gold and copper prices pushing towards all time highs, us gold corp. offers investors leverage to both gold and copper

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good tuesday morning again. welcome to "money movers." i'm sara eisen with carl quintanilla live from post 9 of the new york stock exchange. today shares of charles schwab surging up 7% on the back of results. both the incoming and outgoing ceos join us to break down q3 numbers ahead of the january leadership transition. the nuclear power company backed by openai sam altman winning doe approval for a new