the mark. in the pre-market, the dow up 85 points. s&p is up 4 points. nasdaq indicated up 15. the s&p and nasdaq new highs yesterday. we will continue to watch as we get to opening bell.4.39. that does it for us today. make sure you join us right back here tomorrow. right now it's time for "squawk on the street." good tuesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at post 9 of the new york stock exchange. futures steady after five straight gains for the s&p amid this post-election rally. bonds opener. five fed speakers, including waller this morning. our road map begins with stock continuing to ride the trump wave. futures higher as traders await nutrition details from the president-elect. activist pressure at

honeywell. elliott amasses a massive stake. it's pushing for the company to separate. the shares are surging on the news. home depot lifts its guidance. they say sales are improving but consumers are cautious about spending. let's look at the post-election rally. jim is back on set after a couple of nice days in dallas. jim, what do you continue to make of this continued roll-on? >> there's a belief that deregulation and taxes will spur much more growth than what vice president harris offered. a lot of big money guys diplomat expect this to happen. there's also -- david, you might -- i know this is maybe too much to the political, but so far people are -- people who are known, including secretary of state rubio today, it's not some -- it doesn't seem like anything other than we're back to lower taxes, deregulation, and the market likes that.

>> definitely does. >> it just does. >> i guess the question i'm starting to hear is how many of the gains have already been taken -- >> true. >> -- versus when the administration actually takes power a couple of months from now and starts to implement other policies, jim, namely certainly tariffs being chief amongst them that will be viewed, perhaps, differently. >> it's important to note that already we're getting pushback. citi talking about how the transports have completely gone ahead of themselves. you've got to be very careful because the next thing you hear is going to be estimates lowered. but i come back, carl, i'm going to see live nation today. new paramount in brooklyn, frank -- >> that's a great -- >> it is great. there's an example of -- live nation is a very clear example of what i'm talking about. there have been a really serious effort made at the beginning of this year to separate

ticketmaster from live nation, which really hurt their earnings. what they talked about on the call is, look, that may be done. we're going to have a more reasonable antitrust department, a more reasonable antitrust department is a pe multiplier because you're not going to get blindsided, you're not going to have an alphabet which must be broken out, you won't have a live nation that must be broken up. what you have is business as usual. if antitrust doesn't like it, they call you. that's what they said on the call. i can't wait to see michael because the rule of reason is back. the rule of reason. >> it's interesting. the quarter wasn't perfect. sales did -- >> like the revenues -- >> -- at all three divisions and yet the dynamic you're describing results in what we got today. >> you split that company up and you have a company that doesn't do as well. one of the things we all have to recognize is not do as well versus well is part of what was going on with the administration's antitrust department. which is we're not going to have these companies do as well. we don't want them to do as

well. we want them to break up and not necessarily, we want monopolyists to be punished. i think there was a sense of retribution and a sense of moral judgment against monopolyists, which included live nation. if you read what the justice department said about it, they were adamant. look, this is -- >> right, right. you know, speaking of splitups, guys, let's get to the news of the morning. >> you want to talk about honeywell? >> yeah, let's talk about honeywell. elliott, the most active of activists and the largest by far has taken what, in my memory, may be the single largest position i can recall -- >> it is. >> -- in a company. and this is obviously a well-known company, honeywell. certainly aerospace and a lot of the other businesses. they want them to split up. you can see the reaction in the stock price. a letter from elliott has been released. this is often the case in terms of their playbook.

marc steinberg, jessie kohn, the activists there. i'll come to you for your opinion, essentially, on whether it makes sense to you. let me -- you know, the idea is fairly simple. you've got enormous markups in so many of the aerospace focused companies. we talk about ge all the time. frankly, they're on the board at houmet -- >> how i met your mother. >> and rtn and the value that's been created overall by the split of carrier and otis and, obviously, the aerospace business specifically as well there. so, they think the value can be unlocked in a significant way. let me give you their quick take which is what -- they think 51% upside. conglomerate structure that one suited honeywell no longer

works. a little more detail in the letter. aerospace valuations have expanded significantly in recent years. honeywell's multiple remains flat and they trade durntly at 25% discount to aerospace peers. and their multiples underperformed industrial peers that lack significant aerospace. >> i've been aggrieved in the sense the last couple of -- kapoor came in. >> new ceo. >> yes. several times, even on "mad money," he -- wow, i don't look so good there. even on "mad money," what happened is, he would say, look, things look great, and then i don't know, a week later they would report to the low end. it was, i think, a consternation to elliott and to us, because we were like, are you kidding? you just came on the show and said things were good. one reason i felt so aggrieved

is these are premiere assets. what larry kulp did -- >> being ge, similar to united technologies, split into several companies, whether it's medical or vernova and ge aerospace. they created enormous value with ge. ge's multiple is incredible. >> you got four times what you had a year ago. one of the things that happened there is you got lucky with the energy business. which turned out to be a windfall. what is really incredible, david, he -- they broke the company up in parts. they broke off the cats and dogs, chemical, aerospace, automation -- they just announced the plan to spin off -- october 8th. >> look, they are happy to have aerospace because aerospace is so good, and then everything else, office automation, climate

controls, decarbonization. i think it's huge. we're not going to sell -- >> as a shareholder, are you in favor of it? >> yes. we have been selling because we felt the operations were poorly run. the missed quarter, enough. you don't say you're going to be at the high end and you come at the low end. we favored this splitup. we figure it's just a matter of time. they announced recently that they're going to split and get rid of the cats and dogs chemical. that's the legacy. and then have three different divisions. i was fine with that. this is much better. this is much better because everyone wants aerospace. by the way, rockwell automation, which is a company that missed the quarter several times, that looks like what could be for automation, and that gets a very high multiple. >> does it? >> yes, very high. >> it's even better. you get the much higher multiple for the spun aerospace or whichever is left. and then you hope you even get a higher multiple on the industrials. they point out there are industrials without aerospace that traded higher multiples

overall. in terms of my understanding here, they probably -- i think they've had a conversation or two with management, so it's not a complete surprise. >> pleasant, pleasant. >> this is not going to be at least the sense i'm getting, jim, a southwest situation. >> no, not at all. >> the most recent fight that we've been covering fairly closely here between elliott, which came very close to, obviously, a full-on proxy fight and a long time since we've seen elliott go that far down before reaching a settlement. that said, i think the nominating window opens early next year. we're getting into that time of the season where you certainly want to make your position clear, if you're an activist, because the nominating window will open. obviously, to be followed by annual meeting season, typically, in the late spring, let's call it, in the may period. >> we do want to say, david, it's important to note that this stock had been going up. i called in yesterday from my trip to the south, and spoke to

jeff sh. i said, this honeywell, we should sell, it's been up so much. look at the run after the terrible quarter. >> i wish i -- i did not hear it as a name in the rumor mill in terms of -- >> if you own it -- >> buying that much stock. often they do buy it -- >> it's big. >> yeah. >> big position. >> that's a very large position. >> and there's home depot, too. >> five plus billion is what they say in the letter. that's a number i have not -- i don't recall ever seeing. i mean, i may be -- >> no, it's huge. i've never seen it before. >> may not be recollecting. our viewers remind me of something. i don't remember one larger. as a percentage even it's actually not an insignificant percentage. they say top active shareholders, that's how they put it. >> there is a sense that dave cody, the architect of this, would have favored anything. he favored higher stock prices.

this works. you're not going hunting with david like i am this next year. >> no. >> you ever use a shotgun? >> i have, many years ago. i shot some traps. i never have -- no, just -- >> just checking. >> just clay pigeons. >> real pigeons -- never mind. i'll get the pigeon group against me. >> jim, final question from me to you before we move on to home depot. >> no, this is huge. >> this is a long cycle business. the multiples earn very, very high for the likes of ge -- >> this is a premiere company. >> can that multiple be sustained? this will take -- even if they roll over right away and say, yeah, we're going to do this, 18 months to two years, what does the world look like then? >> i have a rap. you have a company called boeing. >> yes. >> yesterday my wife said, why is every plane full? i said, one company can't make planes. that hurts the plane business of boeing. they can't make planes. by the way, the space business

isn't doing so well either. so you have this hobbled company. but people are desperate for anything that's aerospace. larry kulp's aerospace is so high. houmet is so high. they're the cockpit in both airbus and boeing. so, it's so buried within this company, it's hard to find. it's not buried, by the way, by mud and by sticks. it's just buried because it hasn't done well. it doesn't shine. carl, to me, what this says is, we're going to get to home depot, there's a lot of things happening right now where you'll pay more for that company than you would have a week ago. that's what i think has happened. you know what, i'm a little more bullish than i was a week ago. suddenly you have a stock -- david was talking about what it can sustain. it's 24 times earnings. i think you might have paid 26 times earnings as we got to this. people like the industrials as

the new regime. >> but the market is pricing it in ahead of time. >> you have a stock like honeywell that's been up. it's up 7% for the year. and you have vils industrials t are up a lot more. a lot of things can happen under this administration. they can combine. maybe they get aerospace, maybe they get it to merge with rtx. don't laugh, david, the things i'm hearing about in terms of the justice department and antitrust going away, people are freely associating. >> well, they're free to do that. i'm just saying they're doing that. >> they are, yes. i say they're free to do that. >> we'll talk over shotguns. >> let's try to get in home depot. >> it is up in the premarket. company lifts full-year guidance and reports a quarterly beat despite the drop in comps. results were held in part by incremental sales related to hurricane demand. jim, this is the first double beat and raise for depot in two

years? >> yes. we're buying some for the trust. we already have a nice position. let me tell you what i think is interesting about this. which you read the news reports, they seem to be completely separated. after this quarter, things were going to start picking up. we just got the quarter i expected next quarter. people have to recognize, this is still the premiere way to play the housing crisis we have. you have rehab that works. you have renovate which works. if you have new -- they have this great business they bought for a lot of money that is great for working with home builders. this is the stock, if you believe we're going to lower rates, which i think we all do, and we believe there can be a housing renaissance because we've had now, i don't know how many years of dry spell of building. we're so far behind where we could be versus, say, the old days in 2000. we could had 4,000 -- >> rates are going to come down so much, we're going to lower rates, what did you say? >> the fed -- >> yeah, the fed just lowered. we have one left? >> no, no.

i favor an elongated rate cycle. i do not cut, cut, cut. >> where are rates? >> they're still at 7. i don't want to cut, cut, cut. that's bad. i want elongated so we sit in here a year from now. we don't want this to happen all at once and we say, what do we do now? we want to own stocks and have a measured rate cut. and i think that -- i don't know, david. i looked at what jay powell said to me. i thought he was somewhat definitive when he talked about the challenge of president trump. >> i don't know what you're referring to. you said when he said this to you? >> when he was asked whether he would step down. >> i'm sorry. >> i thought he was somewhat definitive -- >> oh, yes, understood. >> he did not say, no is not maybe, even with trump. no is not maybe. >> meantime, jim, as we said, two-year high since july. there's a third of a chance of a pause in december. the headline in politico is reflation is back. >> oh, please.

politico is back. all i can say is this is exactly what you want. >> you went away for three days and came back super bold. >> i came back from houston. let me tell you something, i'm a negativist in houston. >> a negativist? >> negativist. that's what the mayor tillman -- whatever. all i can say is you don't want to be too bearish here. reflation, i mean, what do you want? why is something always have to be wrong? >> that's usually what wall of worries are all about. >> we can keep -- you know what, david -- during the break i'm going to try to get everybody out of this market. i know it's going up. you know what, i've had it. i don't want anyone making any more money. that's it with the money making. let's just be negative. i really want to tell the truth now. >> no, but sometimes you get overenthusiastic -- >> look at what's happening. >> there hasn't been a top. that's the point, there's no top. there hasn't been a top since we've been together. >> that's true. >> i get too positive at the top. well, how about the top we've had every single day for the

last 20 years? >> you're right. >> prosecution rests. who do you have? >> there was a bad period or two in there. >> yeah, but what's your exhibit? exhibit what? >> i don't have an and ibt. >> you wake up to honeywell with the largest -- >> just love wind, you up. you're so easy. >> i'm going to get him to go to texas. >> that's a great state. >> all i know is how much you hate it. no, he hates me. i love him. >> when we come back, it is full speed ahead for the president-elect's transition. we'll get a closer look at some of these cabinet choices and a reminder, it's not too late to join cnbc's delivering alpha summit tomorrow. you can register, scan the qr code on your screen or go to cnbc.com/delivering alpha. take another look at the premarket as we'll get to more discussion about the fed speak this afternoon. (cheerful music) (phone ringing) [narrator] not all multi-millionaires

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in florida with the latest. good morning, eamon. >> reporter: good morning to you, carl. we're starting to get a picture of the national security side of this administration with the expected nomination now of florida senator marco rubio as secretary of state. rubio, obviously, a one-time trump opponent cho is now very close with the president-elect. rubio a china hawk, skeptic on ukraine. his views line up directly with donald trump's views. that's why he is expected to be chosen here. also congressman mike waltz, a former green beret, a china hawk, now expected to be a national security adviser and kristi noem now expected to be named to the department of homeland security as secretary there. she'll be somebody who was on the short list for vice

president. not selected there. but now will be a key player in overseeing the department of homeland security. obviously, border and immigration issues will be central to her future. she will be in charge of implementing the trump agenda there. all of the picks here, guys, suggest a very hawkish administration in terms of china, very hawkish in terms of domestic policy on immigration as well. and that is as advertised. that's how donald trump ran. that is clear the signal we're getting from mar-a-lago, that is how he will govern. we're expecting the former president and future president to head to washington tomorrow to meet with joe biden. with house and senate republican leaders. we'll see whether we get any new names on the economic side later in the day today, guys. >> eamon, i hate to -- well, i don't hate to ask this. the speculation has already started. rubio leads the senate from florida. who is appointed by, i guess, desantis to take that seat.

there's been no shortage of speculation that the person's name will end with a trump. >> reporter: that's -- look, anything's possible, right? anything is possible. donald trump controls this party in a way that we just haven't seen a president control a political party, you know, maybe in our lifetimes. so, we'll see. i would imagine that desantis will do what trump asks on that. there's been a lot of speculation about a lot of names down here in florida. not exactly clear which way he'll go, but it does open up that vacancy and that becomes something else you can speculate about. >> eamon, the greatest china hawk -- >> reporter: the other question is -- >> go ahead. >> reporter: i was going to throw out, jim, sorry toinhawks to this administration, and you have at the same time elon musk at mar-a-lago, at the president-elect's side. there's some interesting crosscurrents with musk's business in china. you can argue he has a big

conflict of interest in china, at the same time trump appointing china hawks to positions of power. will elon musk be a moderating force on trump in terms of china or is he out of those conversations and into the domestic policy piece? we don't know at this point. >> moderating force i'm not seeing yet. but where's the great china opponent, the greatest hawk of all? where is peter navarro? >> i have not seen him. we are eyes out for everybody down here. have not seen navarro. i expect he will play a role in this administration. donald trump appreciates political loyalty and personal loyalty and navarro has shown that during the course of his stint in jail, serving sort of defiantly as somebody who was defending this president. and i think that he will be rewarded somehow in this administration. the question is where. some of the top jobs are already going, so maybe he'll be at a lower tier level but he's somebody that has a terrific way of working his way into the oval

office sxbing part of all those conversations. >> eamon, thanks. a lot to get to on the political front with your help today. that's eamon javers near mar-a-lago. the b of a desk calls rubio and waltz hawks. >> semis weaker expect for nvidia. ever since -- we've had this explosion and servicenow. what's going on in salesforce is truly remarkable. here's a company that literally has too much business. marc benioff, the founder and ceo, decides we need to hire 1,000 people. i'm understanding that's not enough. they can't handle the agent force business, there's so much. it is a remarkable -- >> a.i. is the talk of the street. >> when you call an enterprise, you call it drugstore -- >> hiring another 1,000 people?

>> yes. >> wow. >> you don't ask for the person anymore, you ask for the agent because the agent does not get sick of you, likes you, if you're grumpy, if you're mean, if you're terrible, if you're upset, the agent can handle that. david, i suggest you find places that have salesforce. >> you're right. you're right. when he's right, he's right. >> when we come back, shopify up 20% on this quarterly beat. we'll talk about how that fits into this picture. stay with us.

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let's squeeze in a very quick mad dash. we got an opening bell a few secondss from now. >> they come up with some things talking about x, other bets for alphabet, x, the reality labs for meta. you have two stocks. it's time to buy both,

reiterate. i'm not going to disagree with them. >> all right. carl? >> let's get the opening bell in the cnbc opening bell. nuveen with the opening bell. at the nasdaq, spirits logic, listed on the exchange. they're an apple player. one of the things you mentioned on semiconductors, they're part of the problem. their hand sensors are not doing well. it's hard for the semis to do it. >> what did you make of the big tech weakness yesterday? >> once again you've got that rotation where people say, all right, under this new administration these companies are not going to do well. what's going to do well are small and medium sized businesses. we have shopify. i'm sure when david and i were talking at the break, you have

these situations where who's most tweetable. who is -- you wake up and you say, oh, man, i guess he doesn't like rtx because trump does tend to make it so it's very interesting to do our job. >> what's interesting about the small caps is although the index is doing great, they're having trouble getting the percentage of constituents with their own, say, 52-week high. >> we end up buying companies that aren't doing that well because we've been in a subdued u.s. market so we just kind of say, listen, buy the index, don't buy the companies. that's what happened last time. we had this big move in the index but the companies didn't follow suit. which sounds odd. the index is the companies. you're stuck with a lot of companies, when you buy them, they're fraught. so, i think stick with individual companies, don't just buy the index. you'll get flummoxed soon. >> guys, we got some news from netflix. it's not having a large impact on the stock but it's worth sharing given how often we discuss.

you guys discuss streaming overall, the huge changes, of course, in the way americans consume video and the introduction of the ad tier from so many of the direct-to-consumer platforms in a post made public. netflix talking about, hey, it's been a couple of years. we have now seen 50% of new netflix signups are for the ad plan and ad-supported -- in countries where they have it available. 70 million now monthly average users for that tier. you know, jim, it kind of started slowly, but it clearly has picked up. obviously, seems as an effective way by many advertisers. >> let's give them this. they said we will not do this until we really have it. it started slowly because of them. they said, we don't really have it. one of the most amazing is you'll hear them say, we haven't figured this out yet but we want

to do it right. most companies just do it. it turned out to be wise. the nfl games being sold out, to me, is, again, maybe they should have charged twice as much. i never get in the way of netflix. i think it's a great company. when you sell out your nfl games right now, what that says to me is, geez, you could have even charged more. nfl is really -- carl, you follow -- >> as they continue to tiptoe into live sports, netflix -- >> they won fighting, they won -- >> as soon as friday. >> friday the jake paul/mike tyson bout. >> my wife is out of town. i think i got a shot to watch it. >> yeah, you might. i'm looking forward to seeing mike tyson back in the ring. why not? >> how do your -- does your game plan survive this? >> no, it doesn't. that's right. everybody's got a plan until they're punched in a nose.

>> i met him once at a bar. >> that's funny. i met him at 3:30, 4:00 in the morning. it was a very interesting story. friend of mine and i were sort of getting into it a little bit. we were kind of fighting. you know who broke it up? >> you're lying. >> that's true. >> mike tyson broke up -- >> he was sitting on the hood of his rolls-royce -- >> i heard this at your birthday. they left out the key part, it was mike tyson. >> one of the great stories i've had. >> mike tyson broke up his fight. let's move on. where would you like to go? >> what a life you have. >> oh, what a life. what a life. it's been so exciting. by the way, netflix has $346 billion market cap. >> look, there's a lot of companies worth a lot. tesla's valuation lately? >> i have seen it. that's the first day i've seen tesla down in some time.

>> yeah, what is that all about. >> a little over three -- >> johnny come lately. >> an incredible move we have detailed here at cnbc. every moment of the day. you can see it is down a little less than 3%. still above a trillion dollar market value. the move over the last three weeks, even since the election, carl. >> 44% in five days. today morgan stanley, nice note out of adam jonas asks whether the $500 bull case is in play, jim. he does say our clients are excited about so many things. a.i., data centers, renewables and tesla gets excluded because 80% of it is still selling cars and cyber trucks. >> i'm a believer ever since that last quarter where they just -- where he so-called blew the quarter and the stock went down to $230. you got to buy, you got to buy but you lay out all the things

that happen. you have self-driving. wouldn't shock me if we got a tweet which is from now on they're self-driving on the interstate and we're going to make it so that elon has it. what's the matter with that? >> that's federal roads. >> you can kill the nitsa entirely -- >> we don't need that. that's musk's -- when i was in texas, i shared a great deal of optimism, most people were trying to figure if he would cut $2 trillion or $3 trillion out of the budget. >> i'm curious. >> have you ever heard pigs can fly? tyson food speaks the number. do you know how hard that is to have happen? i'm talking about a major sally change. david, pork can fly. >> you have not been happy with that company. management issues.

>> it's under management. i use that term now. >> tyson's stock is up 8%. >> went from mike tyson to tyson. >> i was once in a fight with someone and some pork broke it up. >> and john tyson came and broke it up. >> no. >> he was out and about. >> this is a cheap stock that if you believe in protein, which a lot of people do, it's the best way to play it. it's protein. glp-1 needs protein, meet tyson foods. it's ahead of honeywell in terms of the percentage gain. >> we've got a statement from honeywell. the stock is up 5.6%. if for some reason you're just joining us, decided not to tune in at 9:00 -- >> if they didn't come in, we're not telling them. >> elliott put a letter out.

they have a more than $5 billion stake in honeywell. it would be, from my memory, the largest single activist position i can recall and the company does have $150 billion plus market value. that's still a significant percentage stake. they call themselves the largest active investor in the company. they want them to separate. they want aerospace and everything else. that's the basic plan they would like honeywell to pursue. let me read you the statement from honeywell itself which simply says, we acknowledge and appreciate the perspectives. while our shareholders -- interestingly they say, it has not made them aware of their views prior to today. i think you had some conversation. they said they look forward to engaging and welcome their feedback from all investors as they continue to execute a disciplined strategy, which includes pursuing sustainable growth and maintain accretive

capital program. jim, you believe they would be better off splitting. do you think they will be amenable to the idea? >> i think he will do it. i think he wants to be ceo of one of these. the idea of lumping the automation division today, three different divisions. we have a decarbonization makes more sense. i thought that wasn't the case but i've been persuaded by the note, which is authoritative. when you look at what they're thinking about. they say eaton is up 54% this year. ge is up. a staggering amount. ge is up 81. parker hanifin, again, these are all analogs, is up 53. train, which the -- can't stop a train. train is up 70. even after this morning with the run, honeywell is up a pathetic 13%, well behind the market. you can see why they think it should be 350. >> you were referencing

comparables on both sides of the business, which is important for people to understand. >> yes, i was. >> it's rare these days. a lot of the activist situations you run into are kind of -- they're about execution from management. you think pfizer, what are you really going to have them do, jeff smith? even on southwest. elliott had specific asks. this one is kind of simple. the market setup is kind of simple. >> i wanted the three -- >> you split it and benefit. whether or not they're right or wrong, but that's a simple premise. >> give us aerospace and you can have the other stuff where there's value. right now everything is -- everything is buried within the poor execution of the company. the poor execution, i don't think they would agree with my calling it poor execution but when you say the high end of the range and then you do low end of the range, that's execution. that's why the stock has been stuck. otherwise you'd be saying, this is just a home run. you have all this aerospace.

i don't blame them. when we stop selling it. this is ridiculous. the stock keeps going up. it has to be an activist. bingo, they have big feed on this one. $5 billion worth of stock, people stopped selling it because they said, wait a second, yesterday it was up huge on nothing, absolutely nothing. >> that may have been a sign. >> i agree. >> ton of activity in the energy complex, jim. opec does cut their oil demand forecast for next year. brent is now below the 50-day, first time in a few years. and then darren woods say trump should keep within the paris climate accords because business wants consistency on both sides of that equation. >> that was a bit of wishful thinking. if anything there's going to be a ing of whatever can be dismantled. one thing i think they -- these

oil companies learned in 2016 is we drill more. obviously, it lowers the value. we're not seeing the growth in china that would have made it so we could have more demand. and then i think -- the only swing would be if the president-elect says, we're not letting iran export 3 billion. they're lucky to let them export 3 million. david, you know the gingoistic look doesn't let -- >> i do think it is interesting -- not surprising that darren woods -- exxon is the largest out there, would come out and say, hey, we have a plan and we intend to follow it. part of it is decarbonization over a long period of time. the energy transition. they aren't saying, we have to do this right away, as our viewers know. don't change at all on us. >> they feel it's the future.

there's nothing you can do. the next president comes in -- >> it's the back and forth nature of it because the last trump administration pulled us out of the climate accords, brought us back in, now we're back out. it's the independence. it's harold han and much more supportive of that policy. >> look, i think that when you speak to the oil execs offline, they say the same thing, we have children. our children want this. children want climate control. >> dow hanging onto 100-point gain. watch bonds today. five fed speakers including waller, barkann, kashkari and the seen loan officer survey give us a sense of credit in this country. stay with us.

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shares of shopify are up 19 points. they beat the q3 earnings estimate. they beat everything. and using a.i. to attract new customers. really, this may be a renaissance period in terms of entrepreneurialship. joining us is charlie ficklestein, shopify's ceo. how much did it help that you guys have really turned on the jets here? >> i think what you're seeing, jim, is we continue to deliver some of the strongest results in the industry quarter after quarter. if you look at our metrics, gmv is sales by our merchants, a proxy of how merchants are doing, our revenue is up 26%. growth profit grew 24%. operating income more than doubled from last year and free cash margin to 19%. what you're seeing is we're able to deliver both on growth and on

margins and we're gaining shares in a very vast and very thriving market and it's working. >> i do believe you have come out with a thesis about what's going on that i love. you have lowered the cost of failure rather dramatically. so people can take side hustles into the real deal. the passionate people are able to take your site and go soup to nuts. it's working. >> what you're seeing are more merchants are coming to shopify across verticals, geography and size. while we're the place to start a small business, we are the default place to do so. at the same place we're seeing companies like reebok, off white, hains, victoria's secret come to this. it's easy to get started. and as you scale, you have everything to future-proof your business. the scale with millions of stores in the platform doing $69 million, we're able to supplement that with incredible merchant solutions, whether it's

payments or capital or financial services and we're creating this retail operating system. it's working well. >> let's talk about finance. on october 29th, 14 days ago, you announced shopify finance. i thought it was brilliant. are people taking up on that. >> one thing we think is important about finance is making it easy. it's a new, intuitive unified home for all of our financial solutions and built into the admin. whether access to balance or credit or bill pay or tax, it's one place you can go to get everything you need. this is similar what we're doing with a.i. we're trying to make sure merchants on shopify have a. rather than looking at a.i. at one single part, it's better across all of shopify and we take that same approach in all of our tools which is why people come to our platform and never leave. >> let's talk about a recent slide that was in a salesforce

document, a deck, so to speak, about why customers trust commerce cloud. they're talking about how they have one business from you, hasbro, black rifle, reserve bar, solo store. how do you respond to marc benioff say we think these guys are winning but we're winning share. >> we're seeing the opposite. we see on a consistent basis some of the largest brands are coming to shopify. 16 enterprise brands launched on shopify. we love our roster of homegrown stories, vuori, mattel, but me undies and vera bradley and much larger brands are coming to us also. we're not trying to do everything to everyone. we do one thing and we do it better than everyone, commerce retail. what we're seeing is big brands are looking for is one place to sell. not just online but offline, across social media, on places like youtube. we announced a partnership with roblox. this idea of creating a unified operating system for all of

commerce is the reason why these big brands love us. >> i think one reason your stock can go up is people still don't understand what you do. as you say, in the great video about how we're not trying to be your company. we're trying to be behind your company, which is a level of modesty which i greatly appreciate. for instance, if you wanted to start a product that needs to be distributed, you have partnership with flexport. we take the taxes out. you don't worry about your warehouse. you handle everything. i don't think people understand the complexity of what you're offering because it seems so simple. >> if you were to pretend shopify was a single retailer, we would be the second largest online retailer in america. why does it matter? when we negotiate rates for things like shipping or payments, we're negotiating as if we're the second largest retailer. it's sort of keeping those economies of sale for ourselves, we're able to disseminate them and distribute them to everyone that uses shopify. that's how you bend the curve. that's how you level the playing field so everyone can be

successful faster. that's something unique to shopify. >> again, i like to refer to the fact your stock was getting killed when you were on last. you said it's a great opportunity. the people who were negative, they were dead wrong, harley. i hope they short it and have to figure out what to do. i know what to do. thank you for coming on. >> thank you, jim. thanks as always. >> excellent. >> opening gains have evaporated a bit. dow holding onto 6,000, maybe later we'll talk about some of the seasonality patterns we're watching through inauguration, goldman said yesterday. >> we still have to worry about the bonds. bonds are going the wrong way. maybe we have to think, wait a second, people are starting to think about that deficit, which is what they were so worried about, let's say, ten days ago. >> there's a look at the market at ts opinhieng hour as the dow goes red. stay with us.

live nation tonight? >> yeah, live nation from paramount in brooklyn, frank loved it. frank sinatra loved playing at the paramount in brooklyn. they restored it to its greatness. and brinker was one of the great performers of our era, kevin

hochman, this tripled under him. >> i think what comps were up 15 in the quarter? i can't remember. >> there were two analysts who downgraded it saying it moved too much. those analysts, like the people who were short shopify, you what to send them? invitations to their funeral. >> did you hang with jerry after the game? >> no, before. >> because that would have been awkward. >> no, yeah. and he's a delight. it was a beatdown, but there are other things besides football. he's just a loyal, good guy. big friend of ours. big friend of what we do here. who's that? there's lisa. my wife. >> yes. >> you got to see on -- i think that that's a challenged franchise but not a challenged person. >> well, our thoughts are with dak and his hamstring. hopefully -- >> they gave -- the reason you can't be too -- you can't pound on your chest because we lost by the same amount last year at this time.

i went down for that. that was an invitation. just managed to dodge that invitation. >> we'll see if thursday will be eventful. >> oh, my. i'm not going. >> i'm surprised. >> because i took off yesterday. i can't -- i can't take off today. i have an eagles game. sorry. sorry, david. >> priorities. >> david's a fighter, not a lover. that's what we learned. >> jim, we'll see you tonight. "mad money" 6:00 p.m. stn eaer time. dow is up eight points. stay with us. i'm reminded that it's not about the destination. it is truly about the journey. (cheering) (♪♪) (♪♪) (♪♪) (♪♪) (♪♪) hi, i'm damian clark. i'm here to help you understand how to get the most from medicare. if you're eligible for

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good morning and welcome to another hour of squawk on the street. we are live as always out the new york stock exchange. we are holding gains, not doing a lot on the s&p 500 but holding at these record levels. the nasdaq is working better today. the dow after a big win

yesterday is giving a little back. what is working inside the markets? medication services are the best performing group right now thanks to live nation which is up 4%. you have energy, technology, consumer staples and financials all of. materials, tilities, and real estate are the worst performing sectors in the snp. the bond mike and -- market was closed yesterday and we are seeing treasury yields resume. we are 30 minutes into trading. here are big movers we are watching. honeywell is rallying. we will have more on that coming up. home depot giving up earlier gains, still in the green. we will have comments from the cfo about the latest earnings in just a moment. i mentioned live nation. profits rising almost 40% from

a year ago. the company did not provide guidance for the rest of the year. life nation did say they have already sold a record of more than 20 million tickets for concerts in 2025. that outlook certainly help in the mood. that is as far as the economic data. it gets heavier later in the week. i did want to note small business sentiment which did come out. we had a nice take up in small business sentiment. it looks like it is from a low base but we have the highest level since february 2022. small businesses getting a little more optimistic pickett was ahead of the election. 93.7 was the number versus 91 in september. 92 is the consensus so that was a little better. >> 34 months below 50. i don't know if we built in the chart of uncertainty which has skyrocketed the last couple of

weeks. >> what i did was the most important problems for small businesses. inflation is still a winner in terms of how high the problem is compared to poor sales. i think it is interesting given that the fed has shifted to the employment side rather than the inflation side when small businesses are still worried and dealing with inflation. you saw this in the court as well. things still feel a lot of uncertainty. i wonder if that would change with the optimism in the markets, the small business survey usually does lane republican in terms of its views on the economy which is why it has been so depressed the last few years. that will be notable to watch, but the inflation risk also stood out in the bank of america survey. they do a survey and they kind of did it for november, pre-and post election. as far as the biggest tail risks for the

global economy, global inflation expectations are still right up there. global inflation accelerating in november was higher than october and was higher post election. and also beat out the geopolitical conflict where fears receded a little bit as the top tail risk for the global markets. i would also say they looked at the postelection thing. global expectations slipped from a negative in october to 10% first time since august 2021 investors forecast higher inflation in the next 12 months. we have to be aware of the risk that is building. >> we are aware. no doubt. >> the question is is it real. >> it's a little early to know. >> the fed should pay attention. some people think the december

rate cut is not a done deal. >> there's a 30% chance we get no cut in december. >> we will get cpi, the pce, employment reports as well. if we get pce, it is stuck around 2.7%. that would suggest it has not made a lot of progress. >> if you have a headline cpi that might start to the market into every tightening mode. >> we are not even talking about that. >> that is just what they wrote today. >> first they have to pause. if inflation is still a risk out there now we have these high- growth expectations, it is something that the fed will be paying attention to. they can calibrate based on what is happening with the data. live nation, if you look at that company, which is pulled

the soundbite of the cfo on the bullishness they are still seeing in the concert space. listen. >> it's a period of unprecedented level of activity for ticketmaster. that will continue through next year. >> there you go. it is not just all taylor although that surprises me. the last chart i wanted to leave you with this the u.s. dollar. i don't think we talk enough about how strong it has been lately especially post election. it gained 2 1/2% against a number of other partners. relatively speaking the u.s. is the beneficiary right now of growth expectations, of capital. it is strong against the euro, the british pound, china, all of these specific trading partners whether it is the tariff policy or the fact that

growth prospects are brightening and the outlook is better, a lot of it has made the dollar a prime destination which interestingly gold is on the back foot. the dollar is where it is right now. it's a sign of strength but could also be a headache for companies because it hurts exports. let's move on to home depot. shares are up a bit but have been a bit higher in the early going. courtney reagan joins us. she spoke to the cfo. what did the cfo have to say. >> i think there's a lot of uncertainty they put up a strong quarter. comparable sales fell 1.3% but that is better than the estimate. u.s. comms fell 1.2%. that marks the eighth straight quarter of negative comps. it is the smallest decline so

perhaps they are making some progress. here is ceo ted dekker. >> despite the continued uncertainty our focus remains on creating the best interconnected experience through different capabilities and building new stores. >> now expecting full-year comps to fall 2 1/2%. it's a slight improvement from the previous expectation. the cfo told me ahead of the call that the updated guidance is due to this better third quarter. it's not a reflection of what they expect in the current fourth quarter. third quarter sales were stronger than expected thanks to the warm dry weather which extended outdoor projects as well as spending associated with milton and helene. he said we see project deferral. it's not as though they are being executed at a lower price point but he's not prepared to predict. he did say i think the good

news is the housing turnover may not be able to get any worse. i think the worst of the decline is probably behind us. on the call he thinks the stabilizing of rates is what might help rea accelerate financing for bigger projects. he talks to his customers, 90% are homeowners. they are just not ready to undertake a project with rates at this level thinking and hoping they are going to follow when we've seen fluctuation moving a little higher. he wants stabilization there that could re-accelerate spending. >> is home depot the best in the group? is the assumption that everybody else gets hurt also. >> if you look at the last 8/4. home depot has come out top of los. the acquisition and revenue is tough. you have to look at the comps. it's widely known as a very good operator. i think they are working against the macro economic influences that are hard to predict.

things like hurricanes are tragic for humans and homeowners but they also lead some spending. it is hard to tease out and predict because some of that is hurricane prep and some is fixing the damage. >> we seen a lot of custom retail baskets where the constituency there have large china tariff exposure or minimal china tariff exposure. >> they would not tell us exactly where they are. in the past research and what we've learned previously when we've looked at the version some years ago, they were not on the super high-end. they did, however tell me that they do get a lot of sourcing from north america. with north america what about mexico? that could be the next country in the crosshairs. he did not reveal any specifics but did say they get a decent amount of sourcing. >> i would imagine canadian numbers. >> lumber prices fluctuate and the offsets the ripple effect.

>> the stock as done very well. >> it really has. it's been quite a run. it's up 18%. we have seen some fluctuation but this one moves fairly steadily over the last several quarters. we don't usually see a huge bump on earnings day. it's not a stock that you will see go up or down 10%. it just does not move like that. >> 40% of the last year. not bad. turning to the broader market, the s&p closing above 6k for the first time yesterday. our next guest sees more opportunity warning that some of the recent winners could get ahead of themselves. jeremiah buckley joins us now. he manages over $26 billion in assets. the sectors you like have not been the center of the action in terms of and officiates of the trump train. you sticking with them? >> that is correct.

we grew with the market that overall the results of the election are positive for equities going forward, but we disagree to some extent for some of the winners. we think some of them have gotten ahead of themselves. when you look at the banks, so far this year banks are up over 40% with only 3% earnings growth in 2024. i think that is one example. certainly, the outlook is positive if we get changes in regulations and capital requirements that certainly should be positive for banks, but i think the stocks are a bit ahead of themselves in that market. we look at those markets like healthcare, we think the election results are also positive for healthcare but it is tied as the worst performing sector in the s&p 500 so far this year. we think there are some opportunities there. we have some great innovation in healthcare. that is why we continue to be positive in that sector.

>> i'm curious why you say you think the results will be good for healthcare because the market has not picked up on that if it is true. >> i think it has been a difficult regulatory environment for healthcare for the last four years with price controls on furnace -- pharmaceuticals, regulations around medicare and medicaid, so i do not think it's good at -- it gets worse but they administration could be more favorable for the industry which could be positive going forward. >> within healthcare don't you have to be specific? the vaccine number summer staying away from worried about rfk jr.. >> we've seen some substantial growth for pharmaceuticals and companies like eli lilly. we think there is additional innovation in cancer and across the board we think healthcare

services will have improvement over time as utilization trends normalize. we think there are a number of factors that will contribute to earnings growth for healthcare. >> do you have a strong view on rates. i notice you like utilities and rates as well, which tend to move on what is happening in the bond market. >> we think rates will continue to tickler overtime we think the fed will continue on this cutting cycle possibly at a more moderate pace. they are clearly above the normal range at this point in time. we think over time it will be favorable for those rate sensitive sectors, but it is not just a call on rates and our favoritism for utilities. it's a call on accelerating earnings growth over time. obviously, with the electrification of the economy that will benefit utility

players. we have seen a couple of companies and earning season, excel and aep have raised long- term growth outlook and have had pretty aggressive plans. we think it is the combination of the potential for rates slowly coming down as well as a better fundamental outlook for their growth over time. >> it is interesting. and looking at some of the stocks you like. bookings holding, quality disney. it's a little more defensive right now in a time where the market has been ripping. how has the performance been? >> performance has been good. we have some aggressive names. companies like nvidia. that has certainly contributed to our performance, but the focus for our portfolio is high- quality growth. we want to make sure we are finding companies that have good growth opportunities but are trading at logical and

reasonable valuations. a couple of examples you mentioned like looking holdings is another good example for us where we think the organic growth will continue to be quite positive. mostly from the internal initiatives the company's continue to execute on and the valuations we think are reasonable. that is where we have been focused. we are focused on companies that return cash back to shareholders. both of those are good examples of accelerating returns of cash back to shareholders. we think that provides some balance in the portfolio. >> we appreciate you coming on and talking us through some of the pics and your rationale. it is good to talk to you. let's get to some barking heads with steve. >> just to translate those are headlines from richmond fed president tom barkin. he that

-- he said that the economy looks pretty good and they are in a good position to focus. one scenario sees business putting aside recession concerns, increasing investment and growth and raising inflation risk check other scenario is continued caution five business increasing the risk of on and -- unemployment. he said inflation might be coming under control but it risks getting stuck. there's some concern about that . the labor market might be fine or continue to weaken, but job rates have moderated. what they hear from employers is that they are reluctant to fire and reduce headcount through attrition and less hiring. they become increasingly less cost-conscious. the ability to raise prices is limited. speaking of the consumer recap,

good october gains by consumers compared to december. we have actual credit card spending data, up 07 after a negative number in september that was contrary to what the census reported year over year in a healthy way. take-out restaurant 0.8. healthcare, homes, and hobbies were up as spending on gas declined for a third straight month. there has been some scope for more discretionary spending by consumers. >> we were talking about this idea of whether there is a risk of flare up in inflation and whether the ed has put it back in the bottle. i do wonder if you look at some of the trump policies out there. last time when the corporate tax rates were cut did not stimulate inflation. i'm curious how you look at the trump agenda and wonder how big of a worry inflation risk

should be. >> i think it is a worry but you have to be really careful. there's a whole bunch of stuff coming from the trump administration. they could be offsetting. the idea that you have corporate tax cuts could increase supply, could lower the inflation risk especially if it comes along with strengthening the strong productivity we have. we have had good productivity numbers. they remain that reduces the inflation risk check on the other hand, tariffs and deportations would most inflation risk. if you are the fed i think what palos -- powell said made the most sense. you have to wait and see and look at all the programs together. then there is the tremendous political danger the fed is in. they can't really front run these policies. they have to only respond. so that could put the fed behind the curve in responding to the fiscal side. >> that will be something we will be talking a lot about.

thank you. as we go to break, here's the roadmap for the rest of the hour. bit coin takes a breather after a massive postelection rally. more on that move and the key crypto related stocks that are on the rally. investors elliott management taking a stake. it's one of the biggest we have ever seen and not of his them. it's an industrial name and chairs are rallying. the president-elect's top leadership team taking shape. we are near mar-a-lago at the latest. >> reporter: there is question of where he will go for the big om js including treasury. we will tell you what we know when we come back. you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our

retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance.

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square group is the guy in the pole position. also you have howard let nick from antor fitzgerald. he's a key figure in the transition. one of the questions is whether he will try to pull a dick cheney. would he do something like that here? what does donald trump want? we don't really know. the expectation is everybody that loses out on that top job might end up in the economic counsel. that plays into all the questions about what will happen with jerome powell and the fed. the signals from mar-a-lago so far as that trump does not want a fight over chairman of the fed right now. we will see what happens. we are in the early days and waiting for those to come. we might get them all at once. >> soon? do we think?

>> reporter: your guess is as good as mine. i am frantically texting to try to find out. we are not seeing the white smoke over mar-a-lago just yet for any of those jobs. so we will see. >> the jobs that we have so far, how do they compare with expectations? what sort of picture do they paint of the trump foreign- policy team and posture? >> what you've got is a very hard line aaron. this was how he campaigned. also very hard line on immigration. one of the things we can talk about is the economic impact of the immigration policy, but clearly with stephen miller going back as deputy chief of staff, that will be a key role in terms of rolling out exactly what trump said he was going to do. there are really no surprises and that's why it's so

different than what we have seen in the past, in 2016 with the transition. in this case he said what he's going to do and he's very much doing exactly that. marco rubio's an interesting. because he has a little more of establishment credentials. he works well across the aisle with mark warner, his counterpart on the senate intelligence committee so he has that bipartisan patina you might want from a top diplomat to be able to work well with everybody, but this is definitely very hawkish on china administration coming in and that's exactly what he said he was going to do. >> they called him a racist and misogynist. he has picked two women and a latino. i wonder how the democrats are responding. >> reporter: the old headline is democrats in disarray. democrats have never been in more disarray than they are right now. they are trying to figure out how to go forward as a party. it's not even clear who the

leader of the party is. maybe hakeem jeffries in the house. maybe chuck schumer in the senate. we will see who emerges as the central valley figure. right now they are pretty much vanquished across the board. >> let us know what you learn in beautiful west palm beach. >> i am still angling for the lunch invite to mar-a-lago. >> hope you get in. when we come back shares of tesla have jumped more than 35%. those gains have lifted elon musk's network by about $75 billion-$320 billion. after the break honeywell rallying aft aacviern tist investor takes a big stake. details next.

check out shares of honeywell. we've been talking about it all morning. the largest activists taking what i believe may be the largest single steak i have in the many years i've been covering activism. only -- over $5 billion in

honeywell. the ask here is pretty straightforward. split up the company into aerospace and everything else. the industriales business climate control and a lot of different parts in there. the idea being you will get a far higher multiple, take a look at some of the competitors. look at ge aerospace. look at raytheon. and how those stocks have performed. you should do the same, says elliott. in a long letter released this morning in which it details in part that stake. it talks about the idea of a separation. it says it is in high demand from the shareholder base. one of the reasons, aerospace valuations have gone up a lot lately. honeywell has not. the company they say is trading at a discount to aerospace peers. the multiple has even underperformed industrial that don't have any real exposure.

so that is fairly straight forward. split up the company. not that that could be undertaken easily. as for the honeywell response at this point, not much there. they say they appreciate the perspectives and they also say elliott had not made them aware the views prior to today. elliott is known for putting out a very long and detailed plan without really having spoken in any significant way to management prior to said release of the plan. you can take a look at how honeywell has performed. it has not done as well as many of the piers. it's hard to imagine they could ever attain. nonetheless, it's been an

incredible performer. then the power of shrinking to grow that we have seen whether it be the technologies with otis and carrier merging with raytheon and the aerospace. not to mention ge itself. >> i read most of it. judy marx, the ceo of otis was quartered in there about how much more nimble and successful they are. one of the questions that i had was how, if honeywell does go through with this request, how many different companies would you get. reading it i was surprised to learn 12 different public reporting lines. >> each could operate as a standalone. >> the employees spread across 80 companies. this is a humongous company.

>> you may want to split in two at first then you can take it there. >> you typically with stage the splits. the basic idea is a pretty straightforward premise. you will get the higher multiple. you have seen it before. generally spinoffs have been fairly well received in the marketplace as well. let's get a news update with bertha. welcome back. here is what we have at this hour. the supreme court rejected former chief of staff mark does attempt to move his georgia interference case to federal court. he is one of 19 accused of working to overturn the election results. trump was also charged in the case but a trial appears unlikely following his election victory. both men have denied the charges. a new york judge overseeing the trump office --'s criminal

case delayed a key ruling on whether to scrap the a conviction. the judge granted the prosecution a week to evaluate next steps following the presidential election victory. the defense argues the case should be dismissed in light of the supreme court ruling earlier this year on presidential immunity. democrat ruben gallego will be the first latino senator in arizona starting next year. abc news projecting he beat republican kari lake. >> thank you very much. netflix hitting some all- time highs. the ad supported tear has 70 million monthly users. netflix said they sold out of at

inventory for 25 christmas day nfl games. the jake paul and mike tyson fight this weekend as well. after the break the reaction to earnings and commentary for home depot.

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home depot tops expectations and lifts its full- year outlook. that said, consumers are cautious about spending in the wake of still high rates. joining us this morning is michael vassar. good to see you again. thank you for the time this morning. >> you think the warm weather had something to do with it? >> it was very warm in october which extended the home improvement season and enabled homeowners to do more projects outside than they normally

would. it was maybe a 150 basis point benefit to the overall quarter. if you put aside the weather impact, there is still stabilization that home depot is seeing in areas like kitchen and bath remodels. those categories are not getting worse. what that means is it will usher in what is likely to be a multiyear recovery and home improvement demand. home depot stands in a great spot to benefit from that as we move into next year and beyond. >> what do you make of the gross margin decline? >> the gross margin decline was due to the inclusion of the distributor that home depot bought over the summer srs which better positions home depot to gain market share. that contributed about 80 basis points. if you back that out

the gross margin was absolutely -- actually up 40 basis points managing price with strength generating modest improvements. >> it sounds like you are willing to be a little bit patient there. >> you need to be patient with this stock. we are at the early inflection. this is accelerated in part by the prospect that interest rates move down. it will free up some of the stickiness that has occurred in existing home sales to move events that would be better for home improvement demand. homeowners are willing to spend more on their home than those that are not. the value of the housing stock is so much greater than it was several years ago. it is older just like we are.

with that being said, all of these conditions set up home improvement well. we are at the precipice of moving from a transitional to a period of very healthy growth for the category. >> i wonder. is there any rhyme or reason? the delta between a sherwin- williams and stanley black & decker. >> that depends a lot on the category that the various companies serve. for example, home depot noted that paint is starting to see some improvement. paint is one of the home improvement projects that is likely to be completed during not so good economics. that will influence the various vendors performance versus something that is more big-

ticket related associated with the move. i would not draw any conclusions otherwise than dichotomous trends based on what is happening in the unique fundamentals of that product. >> we need to touch base in the coming days on retail as we go to the thanksgiving holiday season. thank you so much. bit coin up nearly 25% since trump was elected. the massive rally and the stocks to watch. the delivering alpha investor summit just one day away. i will be there speaking with nelson peltz. find out how his investment outlook has changed. there is still time to register. you can go to delivering alpha or scan the qr code on your screen.

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international trade dynamics could be swayed by an america first policy from the incoming administration. there will be geopolitical nuances that play. how could international markets fair? > ll there e opportunities to seize upon? tune into power lunch later today.

bit coin sorting to an all- time high approaching 80 9k for the first time it was at 68,000 on election day. here to help us break down the rally and the stocks that might benefit our mckenzie. >> what a week. bit coin came within striking distance of the 90 k. it has hit some resistance.

real outperformance is real -- really dogecoin. it now has a larger market cap than ford and delta airlines on the back of musk closely advising the president elect in mar-a-lago. we are strictly looking at more of those institutional close. bit coin etf had another blockbuster day. the market cap is $92 billion. the black law -- blackrock bit coin fund is no higher. they are starting to demand institutions after languishing for some time the spot either funds hit a new record on monday. finally, on the cme derivatives, the avenue for institutions to get crypto futures contracts, they remain massive. averaging 16% and almost 20% respectively. they are hovering around 7% before the election.

>> what is the case for the other coins? everybody else besides bitcoin? the regulatory focus has been around there. >> we have known that bitcoin is a commodity so it has escaped skepticism. for the other coins it could be instrumental if we see an ouster of the chair. that's where we have seen the market interest shift. people are looking at who might be a potential appointee to replace him under a trump administration. the washington post reporting that the shortlist includes the robin hood chief legal officer, a former commissioner. they also list christian carlo who is at every crypto conference i go to pick there is a lot of enthusiasm. >> all of these making a move. bitcoin minors also writing

this rally. we have been tracking those stocks which we don't always talk about. they really stand to benefit. >> there is a great catch up trade here. those are the ones that focus on bitcoin mining like riot, marathon, and cleans back. they have been lagging as others have pivoted or expanded to a.i. riot is still down for the year. marathon is up about 4% compared to core scientific which is up nearly 400%. they tell me they see the most upside potential in the pure play of minors over the next months given that they are the most leveraged to bit coin. we see some of that they closed up double digits yesterday compared to more modest grains and core scientific. these offer amplified exposure. they are pulling back a little bit today as the rally pauses. of course, that rally is far from over. we have been reporting this for the past week. it's not just about many

promises trump has made to the crypto industry. there's also a supportive macro environment. his budget projections would have more inflation and that would be super positive for bitcoin and related assets and amplified exposure. it's a good way to play that. >> i continue to hear about the other side. they also have a lot of gpl and power supply in place which makes them an ideal place to potentially just use as data centers and large language models. i know there are any number of investors that may want to get active. some of these companies if they have not change their strategy may potentially do so even though they have and benefiting given the rising bitcoin prices. >> that is why you have definitely seen this but this year between the minors that want to diversify and get my attention to a.i.

and the pure play that donald trump has made energy and power of focal point of some of the made which did focus on the bitcoin miners as well. we saw back in the summer that was the first group of people in crypto that he spoke to for support. we have a good set up both idiosyncratically in crypto and the macro landscape to look forward to ver the next 12 years. >> thank you. a big day for retail. not just home depot. catch the ceo of saks. he will share holiday predictions. squawk on the street will be right back.

we want to turn to meta this morning. value act has taken a position in meta. they will not be active. a billion-dollar stage while large for value act, i believe it is the second largest from salesforce, it is nonetheless a

significant on. they have a history of taking positions in controlled companies, spotify and new york times. the reason may be in the shares. they are getting in and getting large at a time when the stock is already up 65%. as we pointed out, any times the multiple remains below that to a large extent of the overall market. the reasons why? the impact of gpu computing in the value act. a.i. which will take customer data from advertisers and determine the highest value audience, refine the audience segmentation with user data from meta is a big jump from what previously had been the cpu world in terms of ad targeting. we have seen it already and the results from meta over the last couple of quarters. their expectation is that will

only pick up. they believe that could be as much as an $800 stock in the next couple of years scene as much as $30 a share in earnings. pointing out that reality labs loses about $10 per share. moffat nathanson, which is also positive on shares of meta points out that is as much as 20% of expenses but 2% of revenues. value act expected to discuss this and a number of other ideas i'm told, in a webcast later this morning. we wanted to share that as well. that is our our for now. life market coverage continues right after this. dad, is mommy a “finance bro?” she switched careers to make money for your weddings. ooh! penny stocks are blowing up. sweetie, grab your piggy bank, we're going all in. let me ask you. for your wedding, do you want a gazebo and a river? uh, i don't... what's a gazebo? something that your mother always wanted and never got.

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is a bit of a data scientist's holy grail. ♪♪ ♪ ♪ good tuesday morning. welcome you to "money movers." live from the new york stock exchange. today can the post-election rally roll on or is this a sugar high that will fade? >> how will the president-elect's new administration impact foreign relations? the former senior ad