about it it's friday, november 15th the ides of november 2024 "squawk box" begins right now. ♪ good morning, everyone welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. and this morning on this friday morning, we are looking at some red arrows as we start things off. these are the biggest declines we've seen since the election. dow indicated off 170. s&p off 33 nasdaq off 170 that comes after stocks pulled back yesterday

here's where we stand for the week the dow down .50%. the s&p down .75% and thes s nq down nearly 1% checking in on the treasury market for, you see yield are up again 4.43 is the ten-year 4.42 is the two-year bitcoin is slipping below $90,000. it is $89,383. >> the dow was down a couple hundred after we wept nt to 4.5? it's been a crappy week, really. >> after the massive gains >> right >> up 4% or something last week. >> i don't know if the bloom is totally off the rose. >> wasn't it nelson peltz saying trees don't grow to the sky?

meantime, trees not growing to the sky in the reverse direction vaccine stocks are sharply lower, this after president-elect trump saying he would nominate vaccine skeptic robert f. kennedy jr. as his pick to lead the department of health and human services. eamon javers has more on the pick and let's start with rfk jr >> reporter: this is a huge agency, andrew i think a lot of people don't pay attention to it if they're not in the industries. it oversees a $1.6 trillion budget it oversees department of health and cdc and food and drug administration and a slew of others this agency is now going to be headed by somebody who expressed deep skepticism of science and

food additives and preservatives and vaccines there are enormous changes coming if he gets in donald trump, last night, was speaking here in palm beach to the america first policy institute. trump singing bobby kennedy's praises. here's what he said. >> i just looked at the news reports. people like you, bobby don't get too popular, bobby you know, you've reached about the level. no, we want you to come up with things and ideas and what you've been talking about for a long time and i think you will do some unbelievable things >> reporter: so trump has said in the past he will let bobby kennedy quote go wild over vaccines and medicines and food and all of the aspects of american life. this is a consequential appointment. we will see if this can get through the united states senate we talked about this yesterday, guys some of these picks that trump

is picking people here that are so radioactive to the traditional republican policy establishment that it may be he has in mind the idea of not going through the senate at all and doing these as recess nominations because some of these people would face difficulty on capitol hill, although trump does control the senate. >> eamon, i want to get into that in a second on aurora rfk, i want to show ye from a week ago. howard lutnik was asked about whether aurora rfk would actual this job this was on october 31st at the time, he was pushing back on the idea this ever was a possibility. if anything, he would have more of an advisory role given maybe some of his tances take a look at this. >> the secretary, no that's not what he wants to do. >> an acting position? >> i just told you what he wants. he wants to help get data to

prove things he wants data and he wants to prove things are wrong if i can't prove they're wrong, that's fine. if i can, i can save millions of american's lives and make their lives better >> eamon, what did you think happened between then and howard asking the question is, of course, he would never been the secretary. we would never allow that. that's crazy and now here we are. >> reporter: that was a week ago. that tells you howard is not in charge of the transition donald trump is in charge of the transition donald trump sees robert f. kennedy jr. as key of his constituency late in the campaign and provided a huge political boost. i also think there's something deeper going on in the american body politic that trump is on to here vaccine skemt pticism became a

political divide in the covid years. that is still playing out today. donald trump decided which side he wanted to be on and the kennedy nomination reflects that that vaccine skepticism is a powerful force in the country and trump wants to ride that political wave as well as bobby kennedy and bring that piece to the public and bring it on board as the verning coalition this is strategy here and gratitude from donald trump saying i appreciate what kennedy did for me on the campaign trail. he is always so looking to the broader could legislation.aliti. >> bobby kennedy squares that with trump i don't know how liquid gold. leave my oil alone elon musk is climate change. >> reporter: he is not running

the department >> i know. >> eamon, i don't know if the departments can suss this out. the pharma stocks are down today. the other thing that he's been so focused on, bobby kennedy, this is, the idea the food additives in the united states are horrific they need to be changed and challenged that is counter to the anti-regulatory regime that's coming in. you are talking about him really wanting to regulate the food industry and up to this point talking about deregulating things >> reporter: this is a point not to quote myself, but trump 2.0 is not the same as trump 1.0 this is a more pro regulatory conservative movement than we have seen in the past in the sense that regulation, using the power of the state to get your determined outcome, is not seen

as a bad thing among the populists in the republican party. the idea you use heavy regulation to push food companies to change their additives and chemicals they are using and processes and all that is not necessarily seen by a lot of these folks as a bad idea it is seen as something you can do to save children's lives. if you are talking about saving children's lives, you will do whatever you can if you look to invest that, you have to be concerned >> howard isn't obviously calling the shots. i love howard. i don't know the idea of the treasury secretary >> reporter: it raises that question, too. >> howard is never in doubt. he is very excited and enthusiastic i can see him as treasury secretary, you know? strong dollar. strong dollar until maybe, not to strong a dollar you know, as i say, i love him he came up sort of as a salesman at not completely, but in the

business that's he's in at cantor, you have to be good at things like that >> reporter: i would think a lot of wall street executives -- i would think a lot of wall street executives and top executives look at him with more market knowledge and more 360 degree than howard. i'm not sure the opinions of wall street elites will matter in palm beach. >> talking about some of the other names, eamon, the report in "the wall street journal" suggesting that matt gaetz appointment may not be confirmed and maybe dead on arrival. that gets to the larger point you have been making of whether there's some kind of bypassing of congress for all of these positions. i'm sort of curious where you land there on that at the moment and what that really means

it does not seem like this senate is going to go quietly. >> reporter: there's two things here you can't under estimate the hate republicans have on capitol hill for matt gaetz. he has ruffled feathers is too delicate a way to put it he de enemies with republicans over the years no love lost there when you look at the mes that trump has signalled he wants to put in his cabinet, it doesn't people, andrew, the slate of nominees you put in the senate it seems you will make the senate eat it. that is the law politics and power of the moment. i think trump may have the power to do that the senate may knuckle under to him. the idea you put all of these individual people up for individual votes seems ludicrous. it doesn't seem like a slate of people chosen with the idea of getting senate votes in mind

>> now john thune is on the spot he actually was interviewed yesterday and talked all about whether that -- it could be that -- i don't know gaetz might be not a trojan horse, but who knows it maybe 3d chess. if you give him up, then maybe -- >> reporter: which one is the trojan horse is matt gaetz? i think trump wants them all in power. >> one way to get him out of the house, too >> eporter: quiet cheering about that >> then he is out of the house and he can try for governor or whatever his designs are down in florida. >> eamon, we have to run >> reporter: yeah. >> go ahead. >> reporter: i was just going to make one last point. we were talking about this yesterday, too matt gaetz is an economic

populist the idea of the m&a boom under trump 2.0. if gaetz is running the department of justice, i imagine that is aggressive department anti-trust more so aggressive than the biden department of justice. the m&a boom idea may not hold water in the matt gaetz era. >> i think president trump wants less regulation. eamon, we have to run. >> reporter: i think donald trump wants control of the future of the country in a way that is important to him >> we should talk about the appointments and the like. jay clayton, who we had on the broadcast many, many times, was named the head of the southern district last night. that would put him in the pole position to root out corruption and oversee often times the big white collar cases on wall street and elsewhere that take place. some of the big cases that are taking place right now

p.diddy prosecuted by that group as well as mayor adams a number of big cases he would be overseeing. >> reporter: that is a nomination that wall street would really like. >> i believe that's probably right. i think he's looked at very, very differently than the other folks. eamon, we appreciate it. >> the recess appointment. these guys used to be in washington basically half the year the senate when they would go back to wherever they were from to get back to washington, they were on horseback. so the president wouldn't be left shorthanded without cabinet help, they put somebody in temporary. people thinking there is a lot in the constitution that is anachronous.

>> that is not in there? >> what is it? article -- >> an article that allows them -- it is because that's the way it was back then people say the same thing about guns >> can you say they -- that congress and senate could run by zoom because it could never shutdown >> that's true you would never need a recess appointment. >> you could eliminate recess appointments immediately. >> you can't do recess appointments unless you have the approval of the house head or senate head. they have to disagree when to reconvene. one of them would have to say i don't agree with the other in order for the recess appointment to be allowed. >> john thune. i don't know you can imagine the kind of conversations and today was the day that they were supposed to vote on the house ethics report. a lot of people say has to come out. >> there is talk it will come out anyway >> right >> they will demand that before

they approve him >> it vets him on something so important. that's information that if you are doing your due diligence, you want to know. >> what if you vote on it and the report comes out after and it contains information you didn't know about? that's why republicans -- >> never a dull moment it's only been a week. only four years to go. it hasn't started yet. when we come back, we'll talk about elon musk's role in the trump administration and what it means for tesla. long-time musk backer ron baron will weigh in in the next hour long time tesla investor cathie wood will talk about the musk moves. we have a home depot ceo interview with ted decker. that's coming up in the next hour "squawk box" will be right back. pgim has established a track record of >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

pgim investments. shaping tomorrow, today. (♪♪) from celebration moments... ...to joyride moments. your moments are worth protecting against rsv. rsv is a highly contagious virus if you're 60 or older with certain chronic conditions, you're at higher risk of being hospitalized from rsv. and there are no prescription rsv treatments. you know how to protect against covid and flu. so ask your pharmacist or doctor about scheduling pfizer's rsv vaccine, too. because moments like these matter.

drop everything and get some magic of your own during the xfinity black friday sale. xfinity internet customers, our best deals of the year are back! switch to xfinity mobile and get your choice of a free 5g phone, plus your next unlimited line free for a year. get amazing savings and connect to wifi speeds up to a gig on the go with xfinity mobile. fly don't walk to get our best deals of the year. connect to the world of wicked this holiday, only in theaters november 22nd.

shares of domino's pizza are sharply higher new regulatory filing shows berkshire hathaway t a stake in the company berkshire took a stake in the swimming pool supplier pool corp that was worth $152 million at the end of the third quarter before today's pop, that stock

was down 10% year to date. this morning, it is up nearly 6% berkshire nearly dissolved the bet on ulta beauty it had just bought into the stock in the second quarter. that was a quick reversal. you can see the shares of ulta beauty down by 4.8%. we're learning more about david tepper's china bets after he came on "squawk box" in september and said in his words, buy everything in china. everything china new regulatory filing shows appaloosa with the exposure to temu-parent pdd holdings it trimmed the alibaba position. although, that remains the biggest holding. tepper also raised his stake in jd.com meantime, michael burry, big short investor, known for calling the subprime mortgage

crisis and betting on china. new filings reveal it added to the bets in alibaba growing the stake to $21 million burry doubled his stake in jd.com and added to the holdings of bai du. burry took a significant amount of put options against those names and what appears to be a long position hedged against short-trm short-term losses. the value expiration of those is not known. it is very difficult to ascertain what's happening there. when we come back on "squawk," companies preparing for new tariffs when trump takes office. later, jason furman will join us to talk about the trump economic policies. he was an vir inadse the obama administration he has a lot of provocative thoughts about what comes next beautiful shot live of the capitol right now. we're coming right back.

(luke) alright, let's settle down, everybody. now that we have a completely new homes-dot-com with a beautiful new design— and the most in-depth info— all we need now is a new name. (marci) do we? (luke) so, we're gonna lock the doors and stay late until we find that name that's synonymous with shopping for homes. (marci) here's a wild idea: homes-dot-com? (luke) we're gonna go with homes-dot-com. we're gonna keep it. i love it. fresh. innovative. this has been fun. (vo) homes-dot-com. we've done your home work.

at t. rowe price, we help advisors move forward by building agile etfs designed to outperform the index. that's the power of curiosity. better questions can lead to better solutions. t. rowe price. invest with confidence.

welcome back to "squawk box. more companies bracing for tariffs in president-elect trump's second term. we have megan cassella with more on how companies can limit exposure good morning >> reporter: good morning, andrew companies are expecting these to hit as trump takes office next year we took a look at the earnings call with the help of the data team, transcripts show the number of s&p 500 companies mentioning tariffs on the calls more than doubled between the second and third quarters this year more mentions last quarter than all of last year combined.

one pattern we found is when executives were asked how they will handle the tariffs, they plan to pass the costs on to come assumers. here is yeti ceo saying they would look at the price option as a potential to tariff risk. then rockwell ceo said he is confident it will be reflected in consumer pricing. and autozone ceo would pass the costs on to the consumer as well it is not the only option, but looking to reroute the supply chain. while we hear a lot from the pro-tariff crowd and consumers not impacted here, it is not what we're seeing reflected by the u.s. executives in the calls. guys. >> megan, it is fascinating to see and how quickly some of the moves may have been to made

depending on what will happen. we appreciate that report, megan. thank you. >> of course coming up, we will talk about bio-tech and that sector and the potential for the vaccine stocks under the trump administration we head to break, let's get a look at the s&p 500 winners and losers >> announcer: executive edge is sponsored by at&t business next level moments need the next level network. he deliver. okay! client wants his head bigger. wow, fast response. sent! okay, oop! even bigger. sent. [sending swoosh, notification alert] still bigger. okay, yeah i'm not doing that— [typing noises, sending swoosh] i think it still looks good! [notification alert] oh — even bigger.

good morning welcome back to "squawk box" right here on cnbc we are live at the nasdaq market site on times square i'm andrew ross sorkin with joe kernen becky will be back n a moment. she will be speaking to the head of baron ron baron. she will join us with him in the 7:00 hour in just a little bit take a look at the futures dow off 156. nasdaq down 150 0 points.

the s&p 500 is off 50 pines oins well. it's time -- oh, my gosh is it? >> it is >> it's time for the new edition of sectornomics with dominic chu. could you sleep last night, dom? >> i did sleep i turned off the philly-washington game before it got good in the second half. >> i didn't look to see what happened you know, i took washington on a fly. it didn't workouts. out. >> i had saquon barkley. he did score two of them >> that's what i should have bet on >> healthcare is in focus right now. the weakest sector in the s&p 500 trailing by 20 percentage points in the chart. average target prices are higher

on several key names in the sector indicating there could be upside if they're right. in a note yesterday, one analyst said the drops are overdone for healthcare and the fear for the administration could squash vaccines and covid shots is not viable many believe glp-1 weight loss drugs are viable and watch for m&a in the coming years. most are in pharma or bio-tech four of those names have implied upside analyst target of 20% let's go through all of them merck is down since early september. the estimate is 33% higher than the current stock price. if they're right, there could be big gains. eli lilly had a good run this year, but down 18% over of the past couple months analysts say it could shoot up 25% from current levels. pfizer is down 9% from its

recent high, but the target price is 22% higher from these current levels abbvie had a rough week down 15% in four days analysts believe it has an upside around 20% from where the stock stands all of these based on consensus fact set compilation joe, healthcare and bio-tech and big pharma and the big vaccine makers back to you. >> pfizer -- pfizer's problems with having too much of their business based on vaccines where that stock has nothing do do with rfk jr moderna. how much is moderna down from its pandemic highs, dom? >> moderna is much worse than pfizer from the pandemic highs i will say pfizer, that story and, joe, because you talk about

it quite a bit the pfizer story on vaccines, especially with the covid products, right? it seems to go in and out of favor with investors almost on a quarter-to-quarter basis sentiment wise the stock seems to be down based on the results of the covid. paxlovid and vaccine products. other times, when they showed real signs of growth, investors cheer it it really remains to be seen what that narrative is around covid in particular for these types of shots i'm not sure what moves the needle the next time around. if sentiment changes the other way, joe >> i don't know. i don't know where the highs are pfizer were. at least 50 a couple of years ago. it's down 50%. thanks not 52-week. >> covid highs >> not too long ago, dom might even above that. 60 above 60 back in 2022. all right. see you later, dom.

coming up on the other side of this, former obama economic adviser jason furman will join us next on the trump economic policies don't miss the interview with home depot ceo ted decker we'll be right back after this >> announcer: sectornomics is sponsored by sector spdr etfs. (traffic noises) (♪♪) the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. because we believe the more ways we all have to move forward. the further we'll all go.

(♪♪) the best way to solve a problem is to keep it from happening. (♪♪) at evernorth, we combine medical and pharmacy data with behavioral health data to identify members in need of care.

predicting and treating behavioral health issues quickly... while lowering costs for plan sponsors and members. that's wonder made possible. evernorth health services (vo) the legend of the turducken is as layered as its many meats. introduced by culinary pioneers, this unconventional feast of fowl has been passed down by generations. this season, defy even more tradition. sell your home with opendoor's turducken of offers. at the center is our all-cash offer. then, the option to list for more. all wrapped in the certainty of a simple sale. this holiday, sell your way with opendoor.

wow. what a first -- sectornomics and jason furman in the house in becky's seat >> wow >> i know. you were counsel of economic advisor chairman under president obama. now at the harvard kennedy school of government that's in cambridge? >> it's in cambridge. >> hat's fine. i'm kidding. it's on the other side of the

river. cambridge is a great place as we talked many, many times. we'll always have fresh pine i don't think there is anyone that thinks the fed shouldn't be independent, especially board members. you would probably argue for that, too. for as long as we've covered business news, we have seen presidents prefer lower interest rates. going all the way back to nixon, i think, and it goes through, you remember how mad the first bush president was at greenspan. blamed him for his election loss i guess my point would be that you don't need pressure for the fed to stay at zero for too long we know that they can do it on their own. we have seen that a couple of years ago. >> look, if you think the president should have the right to tweet about interest rates, he can tweet away all he wants we just don't want a fed

listening to him and we don't want a fed listening to any president. >> they're fully free to make mistakes on their own or in the most recent case, maybe orchestrate this beautiful soft landing, if it, indeed, holds. >> we think the fed is important more than than it is look what's happened since september. they cut the fed's fund rate 75 basis points what has happened to the mortgage rates they have gone up. they depend on inflation and the risk environment's going to be and the fiscal environment's going to be. the fed actually is in some ways accepting reality rather than defining reality >> should we just assume that -- that a fed chair along with, you know, all of the other people that have voting rights, should we just assume that's better than a rules based system? it does depend on how good the

fed chairman is and depends on whether he can get consensus and all of the other constituents are? with a.i. and everything else, is that the best way >> i'm not sure i want chatgpt setting my monetary policy just yet. i'll fond of the taylor rule than i was five years ago. back then, the wisdom and discretion and all that worked out well i think they used their discretion to keep rates too low for too long that contributed to the inflation. i would not replace them with a formula. i wouldn't mind every meeting to publish here's what the formula said give a little more weight to the taylor rule. some of that discretion is almost a mistake >> that is acknowledging you don't want to hurt the independence of the fed, but maybe there is a better way to do some things. >> yeah, i think rules are a

little more predictable. they would have cut rates earlier. the taylor rule said cut rates they waited a while. it goes different directions i think a little bit more rule and less discretion is a good way to do it i don't think any president should be involved in this and, by the way, donald trump won't want to be if he sees the stock market reaction if he tries to fire powell. it would be ugly and stop him from doing it. >> to go to the stuff that judy was talking about. if he wasn't actively involved, should there could restrictions on the federal reserve that he could implement or he should be influencing in terms of, you know, buying back certain government bonds and the like and just sort of levels? >> his treasury secretary can do whatever he wants with the majority structure of the debt by the way, if they want to undo what the fed does, they can do that as well no, this thing's worked pretty

well we had broad inflation we had a bad episode that was the fed's consult they corrected their problem this is like the one institution in our country that is basically functional the idea that you inject more congress into it and more president into it? those are totally dysfunctional institutions >> what happened with jay powell what got into his water recently to say that? because the last bs report doesn't indicate the economy has strengthened since the election. do you think he's looking at some of the proposed trump policies to say i want to keep some -- i'm going to be sitant to lower rates with tariffs and inflation and we're going to spend and cut taxes across the board. >> the market is looking at those policies and priced in higher inflation expectations. 4.15 because of half of higher

inflation and higher real rate which is what you get from larger budget deficits inflation also has been stubborn we had a couple of bad prints in a row at the same time gdp is at 3% we will have a ten-year core pce of something like 2.8% the next print, the one after that, that is a real wake-up call we're stuck above 2.5 >> that's 40%-er higher than t target unless you move the goal post which they swear they will not do >> i've argued for moving the goal post. there is speculation as to what they have done one of the arguments for lowering the target is if you thought the neutral rate was quite low. they're sticking with the 2% if they're sticking with it -- i don't mind if it is 2% it rounds to two, that's fine

with me. you know, 2.7, 2.8 they don't round to two. >> that pod. you look thinner, younger, more handsome in the studio with this pod. >> i'll come here any time. >> what is the pod >> do you remember -- >> on zoom in his attic? >> no. it looked like you had a pod. >> i had been kidnapped. it was in connecticut. >> you looked like a hostage state. >> i was in connecticut. beautiful view of the ocean. you didn't get to see it >> thank you for coming in >> thanks. joe, i'm rooting for you for treasury secretary you're the person. >> it's not that ridiculous. >> no, no. it's much better than some of the other picks. >> much better >> wow just think >> can i call you? >> i'll be it. you've always been nice to me. >> can i call you?

>> oh, yeah. i'll tell you what to do. >> he will need advice >> you are follow my twitter feed i'll have advice there >> he looks good on tv joe kernen >> you are perfect >> think about just standing there on the lawn, on the white house lawn doing those interviews. >> i'm not sure i'm qualified. i look back at previous treasury secretaries. the aluminum guy >> i'm not going to speak ill of the past. >> i might be all right. >> the present. >> oh, my goodness, gracious joe kernen as treasury secretary. >> egging me to come on. i'll go on with becky. >> good. lina khan's days at the head of the ftc likely numbered, folks, but that is not stopping the agency from launching a big tech probe before then details next still to come, ron baron live from the 31st annual baron

investing conference becky has made her way over there. we'll hear from both of them in a little bit don't go anywhere.

it's mine. you, ok? yeah, are you ok? we're fine. my serve. maybe we should stop. this pinewood pickleball champ stops for no one. we got our melons checked. she had a concussion.

admitting i was wrong is worse than losing at pickleball. saving your brain is a definite win. don't mess with your melon. if you hit it, get it checked. welcome back to "squawk box. the federal trade commission launching an investigation in the microsoft cloud computing business lina khan with the investigation. over similar matters we'll see what she does in these waning weeks if matt gaetz gets the gig, maybe -- maybe she's not going anywhere >> jd vance. >> that would -- by the way, i was about to say this is like impossible to happen, but

stranger things have happened. >> yeah. he worked for trump at this point. he has expressed in the past empathy for what she was trying to do. vice president-elect shares of alibaba higher after reporting earnings and revenue that topped analyst expectations alibaba management said revenue growth during the quarter was driven by improving monetization of baibai. a.i. related product delivering triple digit growth. when we come back, president-elect donald trump ing rfk jr for hhs secretary. what that could mean for the healthcare sector and all sorts of things. moments away, long home investor ron baron will join us

about the foray in politics and more you do not want to miss as "squawk box" rolls on after this

>> umgc gave me the ability to succeed again. it allowed me to understand my true potential in life and gave me the tools to go get it. i feel i can accomplish anything. >> learn more at umgc.edu. we always had dogs, they're like my best buddies. yep, had them my whole life. c'mon bo! so we got him and he is a, an absolute joy. daddy's puppy. once we got on the farmer's dog he just attacks it, it's incredible. they're so tuned into you and they have such, such personality. being without a dog, i don't know, can't imagine it. [laughter]

welcome back to "squawk box. president-elect trump nominating rfk jr as the health and human services secretary joining us is the representative from wolfe on the one hand, you had president-elect trump telegraphing the move for a long time and then other hints from howard lutnik suggesting this is more of an advisory role more than actually running the place. >> yeah, our expectation is he

was going to land at the white house in some kind of a czar job to get him through the senate and a broader image. he wanted to have oversight to hhs and usda that portfolio cuts across multiple agencies is easier to do from the white house jobs trump is clearly not frayed afr get the picks through the senate this is the latest >> so, we have been looking at the big hannah gutierrez-ealthcd vaccine companies. those stocks are off right now let's talk about rfk that he would oversee if he gets in through confirmation or reconciliation >> the vaccine makers are selling off first. that is target

he adds uncertainty in managed care, that is a indication of a winner of a trump win to give favorable medicare rates what does rfk think about that i don't think anyone knows losing the predictable of the more favorable moves under the republican pick is a headwind to the sectors farther from his -- >> are there companies you think become clear winners as a function of this >> no one really leaps to mind, honestly you know, uncertainty is not generally all that welcome and he is nothing but uncertain. >> can we speak about that though that's sort of -- i don't know if it is the elephant in the room, but it might have been the elephant in the room during the whole campaign which is business hates uncertainty.

trump talks about wanting to have a great economy the business community, when he won, was smiling ear to ear on the back of idea of the tax rates remain and other things like that. you throw the other uncertainty piece in it and it gets more complicated more quickly how do you see this playing out? >> that's a point we made during the campaign that markets generally like the status quo coming out of washington don't like a lot of change tend to like divided government. harris win won that prospect out of not a lot changing. it was the investors all cycle long get trump in and get animal spirits moving we are seeing it now in the parade of appointments there are confidence builders early on and now we're into a lot more unorthodox picks. you know, i think we'll see that across policy areas. we have yet to see what happens on tariffs huge amounts of uncertainty

there. trump is trump we have to expect the unexpected >> in terms of the food ecosystem, we're talking about rfk before when it comes to drugs and healthcare, in terms of the food ecosystem, you know, how do you -- how do you see that because obviously you can go short skittles in the u.s., joe. whoever makes skittles will be in trouble coca coca-cola? pepsi? i don't know how you look at the whole ecosystem. >> we have a lot of questions about the food angles of this and from investors i won't name particularly companies outside my lane. - for specific things they are producing either with an eye

toward actual pesticides and herbicides and so forth or food items - >> the issue as it gets farther downstream if you are not using pesticides or antibiotics and other things. food costs will therefore go up. the raw materials will go up because there will be less of them. i hate to say the cows will not be as fat. the chickens will not be as big. then, you have a different issue. this is the cost of food materials in europe for xample which are largely subsidized, a much higher actually not necessarily to the onsumer but they have done a lot of things to sort of make it appear they are more expensive but in fact, they are. >> i think if you play out the thread the second order effect you have to worry about. directly in terms of what the

inflationary risks are across the trump agenda i would be more concerned for what terrorists mean rather than - if we make that change, take the time to see through into the food production system. that i think is a multiyear effect. >> thank you for joining us. we will, i'm sure have you back. will be talking a lot more about the transition and changes to come as things progress. it is 7:00 on the east coast. you are watching - has made her way to the extravaganza. baron capital's annual investor meeting. we will see her and him in just a moment. retail sales data will be out this morning at 8:30 eastern time. economists expecting sales to cool a raising just 3/10 of 1%. will bring you those numbers and get we - and planning to

switch its listing from the nasdaq to the new york stock exchange. a win for i do not want to say the home team but we are here expected to take effect november 26. it will be added to the nasdaq 100 index after it joined the s&p 500 in september. that would mean funds that track the index would have to buy pounds or shares and push them higher again. then there is this story. boeing says it is issuing layoff notices starting this week as he begins to cut 10% of its workforce were about 70,000 jobs. u.s. workers who received notices this week will stay on the payroll until january to comply with federal requirements. let's get to the futures. do you care about skittles or was that just sort of an aside? >> tell me if you know about skittles tell me about him.

>> it was a wriggly but which was a public company which was bought by mars. >> mars is one of the largest private companies in america. >> in the world $45 billion in sales. a who's who of great candy. sneakers, m&ms. also skittles. >> i mentioned that because you know skittles that are sold in the u.s. are different than the skittles allowed to be sold in europe. >> an interesting point. more sugar here than over there? >> a lot more sugar and a lot more chemicals and dditives not allowed to be consumed in the u.s. that was the question if a company like that is going to struggle? >> they are hard and can be - >> you should know that skittles will spike your glucose i believe where the just about any food that exists in the world.

>> then it is something to avoid. i worry about cracking a tooth. >> skittles and candy corn i know because type one diabetics often times keep those things around the house to help with the lows they get sometimes. by the way, on a less serious note because those things are obvious a very serious, every time i think of skittles, aside from the fact that mars and everything else and the lineage of it. i think of marshawn lynch. i think of beast mode i think of skittles. that was his fuel. >> that is only going back how long? >> i am just here so i will not get find that is basically what it comes down to. we are not here for a long time we are here for a good time. >> exactly right. let's get started with a check on morning movers. the chip equipment company down about a half percent after a disappointing q1 outlook. it overshadowed both beads on the revenue side and the profit site for the quarter.

they are signing weaker demand trends in china for softer revenue guidance. applied materials, some folks view it as a leading indicator for chips. alibaba reports a jump in profits with growth in its cloud - signaling potential upside from the country's recent stimulus push for the struggling sector. the firm also repurchasing by about $4.1 billion of its own stock in that time. it plans to buy back 22 million to march of 2025. on balance, listed shares up 4%. and tesla shares of the giant rebounding from earlier losses but still down for the week is the trump transition team aims to end potentially by the's ev tax credits. that follows the big tesla rally we saw over the course of the last week after trump's win. tesla shares just about flat on the session but that a move

higher since the election. i will send things back over to you. >> we just ended on tesla is that something we might talk about? >> we might have a very good person to speak about tesla shares. someone who has been in that stock for a long time. we were just talking about shares at $12 per share. we will be speaking to billionaire ron baron about the election, his investment, the elon musk role in the trump administration, spacex and tesla which are his two largest additions and what he is focused on this year at the conference. also coming up, the home depot ceo will join us to talk inflation, the state of consumer and much more. squawk box will be right back.

wall street forecasts over $100 billion in sales for weight loss drugs known as glp-1. even with disliked injections. dehydratech processing of a glp-1 drug demonstrated improved blood sugar reduction and reduced side effects. study results are arriving monthly and lexaria has entered a new relationship within the global pharmaceutical industry. lexaria bioscience, transforming the future of glp-1 drug delivery.

at t. rowe price, we help advisors move forward by building agile etfs designed to outperform the index. that's the power of curiosity. better questions can lead to better solutions. t. rowe price. invest with confidence.

♪ ♪ t. rowe price. ♪ something has changed within me ♪ ♪ it's time to try defying gravity ♪ ♪ ♪

welcome back. to our next guest will be weighing in on tesla, the new role of elon musk in the trump administration and more. joining is now live from the 31st annual baron conference is billionaire investor ron baron. he is the baron capital chairman and ceo. we have been coming to this conference with you for years. we always look forward to it. this is the 31st annual conference. fisher, i have to say the new cycle has kind of moved in such a way that we have a lot to talk about. elon musk is probably the most

interesting person on the planet outside of donald trump at this point. somebody everybody is watching from everywhere. you are a long-term investor, a longtime friend of his. i just wonder what you think is you are watching this. tesla and spacex you two biggest investments. >> those two investments are presented by 50% of assets, 10% for tesla, i percent for spacex. i watched this with puzzlement, everything that is happening i think one element that will be important for elon is he will be able to, he understands where it is unusual spending, spending is much greater than it should be. how that can be corrected pretty easily, actually. have a lot of cost-plus contracts. we changed to the way convex -

contracts work for spacex where they take the risk of central government. cost-plus contracts are an end to operating - what is the word, they are a bad thing. cost-plus contracts do not work very well the person who is contracting. >> i cannot hear anything you are saying i'm going to move a little closer. you stay where you are i am moving closer. >> i like to be closer to you. >> say that again. >> if you have a cost-plus contract what that is is you agree to use services for the government. they give you a price and you go out and find a lot of subcontractors to do the work for you. the subcontractors, the longer they take and the more they cost the better it is for you because you are getting 12% off the top. you want things to cost more as a prime contractor. if the government was sending program they want to send people back and for to the international space station. you have two contracts.

i guess about 10 years ago, one to going for $4.3 billion. a year later to spacex for $2.1 billion. spacex has since been back and forth 40 times. boeing got there once and they could not get their guys back. we had to go rescue them. that contract now it costs $18 billion will cost $80 billion. therefore the benefit by something taking longer and costing more. spacex, if something goes wrong on a friday afternoon, at 4:30, people do not go home until it is fixed. other places 4:30, let's get out of here. they do not care because it is the government's money not theirs. get rid of cost-plus contracts. >> your point is the syzygy he puts into his business is you think he will put it to washington. >> and if you want to go back

and forth you want to go to mars and it 1 million people up there to have lunch regularly and like a lot of times every day. if you have to go get permits every time lunch, airplanes not have to get permits every time they take off. if you have to do that that slows you down, you cannot do it. ethically, there has to be a change in regulation also. there would have to be more reasonable regulations than are in place right now. and this cost-plus contract stuff has to go. >> you have been a longtime democrat and pretty outspoken about that but also a longtime supporter of elon musk. what do you think about the election results and the government will be facing? >> i think he had similar views to mine. i do not feel like i'm a democrat anymore. he had similar views to mine and for a long time but, i think that the democratic party has been taken over by unions,

teachers unions, the uaw. one of the things that was interesting is that they had an ev summit at the white house, everyone has been talking about this. a year or two ago. in that time, they had the leading people for electric cars were invited to the white house to meet with president biden. and musk was invited initially and then disinvited. the person who was praised for leading the way in the conversion was maryborough. she in that quarter did 29 electric cars. we did 300,000. she was the one who was invited and she was the one who was praised as the leader in this conversion. that is because the uaw says i do not want elon musk in the white house. a lot of these interested parties that said no it doesn't work for me to have someone -

the reason uaw has been unsuccessful unionizing the tesla plants is because people in the tesla plants are becoming wealthy, of shareholders in tesla stock. same thing for tesla stock. you cannot unionize people if they are doing great where they are. last year there were five 20 million people who applied for jobs at tesla and spacex for 30,000 jobs. 5.8 million people for 30,000 jobs. tesla might have 150,000 people and spacex probably 50,000. think of the best people care - how do you take people like that and make them into a union where they are just taking something off the top and it is a job that is not that interesting. >> when you do decide you are no longer really a democrat? has it been over the last several years? >> i am an independent. a lot of policies they have i do not agree with.

>> just antibusiness policies, and high-growth policies? >> anti-israel policies. i do not really understand where they came from. the inclusion policies. i think if someone is really talented and virtually hard, they should get the benefit from that. the policies of democrats if someone is not doing well want to say he will lift you up. i'm fine about giving people opportunity i am not fine about taking something from someone who has worked really hard to exchange what they have and take from them and give them to someone else. >> your top two holdings are tesla and spacex. you also have a holding in x.com. elin has a pretty role in the new incoming trump administration. do you worry at all as an investor that will take more of his time or do you think his companies will benefit? >> this is an advisory role. i think right now he's doing a lot of advising. i do not think, i do not know

how active he is in choosing the people were being placed in these roles but he was upposed to come, we had a funny bit plant. i was telling you about this before we were going to do a saturday live open. our here at the baron investment conference today. >> yes. then i told him about this he said why don't we do 30 minutes talking about the future instead. i said okay, great. then he called yesterday and said he cannot do it he is in florida he cannot arrange it cannot leave cannot come in >> he is actively involved. we have heard reports about this. >> the people at spacex told me he does not miss any meetings. he comes to the meetings. same thing for tesla. i do not understand how he is able to do all of this. >> it does not seem like there is enough hours in the day. >> amazing what he does he lives on airplanes and flies around all over. i do not see how anyone can compete with him with how he

works. he says i am not a spring chicken anymore, he is 53 i guess. i am 81 he is 53 and he flies all over. so you know he takes a toll on his body. he is sharp, he can talk about everything. anything. every, he so well read. i guess he must have a photographic memory he remembers everything. >> we have seen his stocks jump significantly. i think tesla shares were up about 80% in the first week or so after the election. elon himself has said recently, just watching the stock fluctuate that he sees things a little more like warren buffett. people are ooking at a house and yelling at prices all they it does not make a lot of sense. does the huge jump in the stock price makes sense to you as an investor? what are ou doing in terms of buying and selling? >> stock crisis - prices same

as it was three years ago. the way i think about tesla is i think that - i met him in 2010. it took four years before i became convinced to invest in him. he said what took you so long? we invested $400 million between 2014 and 2016. just in tesla. $400 million in tesla. we made about $6 billion in profits so far. i sold a quarter of our stock in 2020. three years ago, 2021. after it had gone up 20 times. >> they were people who questioned you at the time you were selling 25%. i think you told us it was because it had got to be such a big part of the portfolio. >> it was too big. it was up 20 times. the idea that i wanted to have as i did not want people to think i had died and that is why they still owned the stock. by the way, ne of my good

friends is will daniels. he is at fidelity. i was telling him i just read something about the people who have done the best in your funds people who are dead, is that true? >> he said i never heard that before but i will look it up. he looks it up because her back and said 3% of my shareholders are dead and they have helped about an average for 18 years they are my best performing shareholders. >> that goes to your point if you buy things and hold for very long periods of time. >> as long as they are doing well. when they are not for the fundamentals change becomes too big a percentage of the portfolio - >> you went to a couple of years where you could've asked by tesla as such. you had a couple of years over the last three years. >> 2014 to 2016 when we invested the $400 million the stock was acting like a yo-yo. for the past three years it was also being a yo-yo performing stock. because, what they are doing is

they are reinvesting in their business and penalized the current profitability to become a bigger business in the future. when ever that happens - the reason we have outperformed. 87% of our assets to better than the indices. 8495%. >> you have $45 billion in assets under management right now. in terms of what the prophets you have paid back to investors since 1992 when the partnership began is $49 million. >> we had $100 million under management in 1982. $10 million in 1982. now it is $45 illion. we have made $39 billion in profits. we paid people over the past 30 years, $4 billion more than we made them more than they have given us. we now are at $45 billion. i hope that in the next 10 years we can quadruple our assets. >> your faith in elon musk sounds like it is stronger than ever. is this a stock you would sell? just from the perspective of it goes up so much it will be a

bigger and bigger part of your portfolio? >> i think right now it is worth $1 trillion. would i rather have two teslas or one bitcoin? the way i think about it is that tesla i think will be worth $5 trillion in 10 years based upon the business plan i am aware of. then elon believes that in the longer term it will be worth $30 trillion. >> do you believe that? >> the people from sachs were doing something for me when the executives in california who is being groomed i think to be the next ceo of goldman sachs, he and three other people from goldman came to visit me this past summer at my house in east hampton. they were telling me that goldman sachs was struggling to get their business value from $150 billion in the market to

$100 billion. the lights had come to my plant in palo alto where have optimist robots. so i go there he says ron, it is dystopian it is amazing. i went to see it and the idea that here we have it would not be any ev is without im they would meet - rockets to use over and over without him. no star link without him. the idea is that this robots he thinks will be his biggest business ever. he says everyone will have robots. my big question was atching these things walking around hat and how intelligent they are. can they procreate, that is the question i have. how is that going to happen? >> is this your way of saying no you are not going to sell shares. >> no way i'm going to sell shares. >> any of your companies? >> if they get too big i will

have to diversify. >> before we came on you talked about how you wanted to congratulate joe with what he has bought with the coin if you want to do it is maybe the opportunity. i promised i would remind you. >> my idea about the coin is you have done the same thing with big coin is i do with my businesses. you know more about bitcoin than anyone else. you cannot a decision based on someone else telling you do the best. you have to do the work yourself. you have done the work yourself and bitcoin, congratulations whatever it becomes. it wasn't for me but going. >> thank you. >> the work you do undergoing is the same kind of work we do on spacex and tesla. we know more about them - cannot rely on someone else to tell you what to do. you have to be able to make a decision on what you know what someone is telling you. >> i do not think it takes that

long. >> let me ask you a little bit about overall your perspective on the economy and the markets. the markets have taken off postelection. there is a feeling that an administration will be much more business friendly and will remove regulation will get things off and running. is that your opinion too? >> i was on your program 10 or 11 years ago. and we passed around this video to my office. the dow jones was 14,000. i said that - you ask me the same kind of question. i said i thought that the market in 10 years would be $30,000 not $40,000.

it got to 30,000 two years ago. what i think about is that the stock market reflects the economy. it does a little better because this is his are perating less capital, more capital efficient than they have been before. the big picture i don't predict the coin or currency crises. i do not predict who will become president. the only thing i predict is inflation. inflation is something not necessarily a four year phenomenon. this is a phenomenon that is my entire life. i am 81 years old. this is my entire life. everything doubles in price about every 14 or 15 years. that means four or 5% ablation. investing in businesses is the way you offset the risk you have in your investments. you have to invest in both companies so you can grow and your assets will become more.

>> this is what you have always talked about but i guess the question becomes it is not an even march. have we seen a lot of growth of stocks already pulled in because of this? or do we have this unleashing so much it will be a time of huge growth from here? >> i think that inflation will be four or 5% per year. everything will be double everything you want to buy the cost twice as much in 10 years as it does today. 15 years as it does today. and, you can invest in stocks which on average go about double in price about every 10 years. that means in 10 years from now the dow jones, which is what right now? about 42, 43,000? that means it will be 80,000 in 10 or 12 years. >> nelson peltz said earlier this week to see nbc trees do not go - grow to the sky. he's pretty optimistic about

what he sees from a business perspective but also says trees do not grow to the sky. is there a potential for stops and starts or maybe some pullbacks? >> i cannot predict the market i do not even try. everyone says what is the market going to do? i have no idea. i do not even try. the interview analysts and we do not even talk about stocks. i want to know who they are. i do not care i want really smart people that i want them to be able to be trained the way we look at things. the first principle is research. rip it apart in your head put it back together see if it makes sense. it's like the business and you trust the people then invest in it. someone we were doing business with yesterday was talking to one of the people in charge of our distribution. she was being told by this investor, we did not have an agreement in writing. it was verbal.

and jay pritzker used to say to me a handshake, if you cannot trust the person you are doing business with, you cannot do business with them. it does not matter what they say. this guy says we do not have a contract in writing. >> one of the things i have always loved about you your consistency your long-term views on how you see things. you buy stocks to stick with them and you hold them. this is part of the legacy you have built. the 31st annual telling legacy. i want to wish you all the best we will be watching throughout the day and we appreciate your time. >> the one thing about building legacy. ford is a company that is built to last, they say. they never innervated the never had electric cars they never connected cars. they sold what they built. they were not building something. building legacy means that what we are building today will be able to provide the same kind of returns in the future we are

building legacy it is not what we built. >> we appreciate you having us here today it is great to talk to you. i'm going to say thank you. coming up, a former walgreens alliance executive on trump's pick for hhs. you know coach prime, it's nice to finally have some free time. uh huh! gives you a chance to reflect on the important things. aflac! like how aflac pays people money

for the expenses health insurance doesn't cover. aflac! health insurance does leave a gap. but aflac gives people money to help close that gap. aflac! oh! coach prime got one on the line too baby! uh huh! see that's how you hold up a trophy. trust me. get help with expenses health insurance doesn't cover. find an agent. get a quote at aflac.com. i hope you're hungry. i'm glad i brought my own dinner. uh huh. this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo get your business online in minutes

(♪♪) look! here we go! (♪♪) (♪♪)

they're following us! (♪♪) woo hoo! this is awesome! (♪♪) (♪♪) giddy up. the first ever nissan rogue rock creek. (♪♪) ♪ (vo) with verizon, trade in any phone, any condition, the first ever nissan rogue rock creek. and get iphone 16 pro on us.

and, ipad and apple watch series 10. all three on us. only on verizon. wall street forecasts over $100 billion in sales for weight loss drugs known as glp-1. even with disliked injections. dehydratech processing of a glp-1 drug demonstrated improved blood sugar reduction and reduced side effects. study results are arriving monthly and lexaria has entered a new relationship within the global pharmaceutical industry. lexaria bioscience, transforming the future of glp-1 drug delivery.

- achieving my goals as an adult was challenging without a high school diploma. with the help of an adult education center, i finished my high school diploma and it changed my life. oh my gosh. - this year's book is a testament to your accomplishments and how they have impacted all of us. - getting my high school diploma made me feel like i can do anything. now i can help the kids in my community achieve their dreams. - when you graduate, they graduate. visit finishyourdiploma.org to find free and supportive adult education centers near you. welcome back back. taking a look at the futures on this friday morning before well, it is not going to be a long weekend but maybe it will turn to a long weekend. nasdaq opening down 151 points and the s&p 500 off about 28

points. >> they are never long i might even just stay here so i am here for monday, it comes so fast.

your clients look to you. you look to t. rowe price. ♪♪

because we stay agile... actively managing investments to uncover opportunities... and build etfs designed to outperform the index. that's the power of curiosity. ♪♪ better questions can lead to better solutions. t. rowe price. invest with confidence.

donald trump has selected vaccine skeptic among other things robert f kennedy junior as his pick for secretary of health and human services. and vaccine maker stocks pulled back a little on that news yesterday. for a look at the potential brought impact on healthcare and farmer, let's bring in john driscoll, former president of walgreens boots alliance, u.s. healthcare. now a senior adviser, their senior adviser.

what do you think and do we know what the implications of this pick would be? we cannot know for sure. we do not know if some of his views have evolved but if you take some of his prior statements at face value, a lot of it is populist sort of bunk. bunk that has been debunked really. i do not know if he has different viewpoints now but, a lot of it would be, i would think dangerous. and probably counterproductive to a healthier country. >> i think that, many of us in industry are concerned that he represents a clear and present danger to one of the greatest industries of the world. over 4 million years of human evolution we extended our lifespan by about 11 years and in the last hundred 20 we have more than doubled global

lifespan 273 years ld. based on vaccines, public health and biopharmaceuticals. i think our industry is the envy of the world. i think many of us in industry are concerned that what he does not understand, he might damage. >> even, i have made this point for years, i get it. food additives. not natural. there was a time when we did not have additives. i would not eat something sitting there for after a day. there a reason for pasteurization, there are reasons for a lot of different conservatives that are put in food. then, i think about, as you said, biopharmaceuticals and the amount of genetic engineering that goes into most medicines and cancer and monoclonal antibodies in the progress we have made. to just arbitrarily say anything genetically modified is bad, it's time you need some

type of treatment for some horrific disease you have do not use anything that has been developed through science. that makes no sense. on the other hand, i will say, in this country, we have a lifestyle problem. definitely with food and the amount of food and the type of food. that people eat, leading to obesity rates and rates for diabetes and anything related to what happens when you are obese or near obese. i get it. i get that we need to be a healthier country but it would be nice if you have facts on your side if you are dictating what people need to do. >> to the point he has raised good questions about the epidemic of obesity and chronic disease. and the food industry. the food industry is the ad department. he has raised good questions and reasonable questions about

environmental illusions - pollutants. hhs, 80,000 employees a $2 trillion budget. programs that affect 170 million people in medicare and medicaid. who drugs and public health and vaccines that affect everyone. this is a completely different mandate and set of responsibilities. i think it is reasonable to ask whether he is qualified, has the management chops and understands medicine and science enough to lead again a partner to industry, that has the best track record at delivering solutions. over the last 100 years. >> probably usually a good idea for the head of something like hhs to have that type of background. even a person that is trained, does rely on all of the people we need him. for a lot of the actual

policies. like what medicare covers for example with new drugs or whatever. is it possible he could have good people underneath him and sort of make overall decisions? that might not be as deleterious to everything? or do you think he was distressed the expert need him? there are some experts i think felt she should have been distrusted my own personal opinion but you do need to trust someone when you're doing these things. >> i think he probably will have a two part challenge. i do not think he really has any experience that i know of in either science or medicine. these are very technical areas. people spend their entire careers developing that level of expertise. there is a range of opinions in science and medicine. generally you look with people

- for people with some qualifications. it is not that some of his questions are not reasonable. the real question is whether he is qualified. this is the nih, the foundational venture capital fund for biopharmaceuticals. really to help give us put us in a position to lead in biopharmaceuticals. i think it is reasonable to ask whether we should probably require that someone who has background in medicine and science to lead these great organizations. >> it is, you do want to i think, trump, disruption is a big thing for him and training the swamp, whatever you want to talk about. as you point out, you do not want to throw out necessarily the baby with the bathwater. probably more good that comes from a lot of these things. it is important. and an error could affect millions of people. take for example, vaccines. i have this, if certain

countries over in europe that do not use mercury in vaccines, still have higher autism rates, you can probably say that it had nothing to do with the mercury. yet he will still hold on to that notion in kind of a mythical kind of a way. then again, is there any way, that you think that immune responses to some of these things could result in things we have no idea? about? or do you think we have a pretty firm grasp of these things? >> again i am neither a doctor nor a phd in science but you make a good point that today he appears to continue to spread the concern about mercury in vaccines that honestly have not been in our vaccines since the early 2000's. that sort of, going from being a connect to a skeptic, sewing

distressed i think is a real concern for those of us in the healthcare industry rely on the public to partner with us to use these novel vaccines and pharmaceuticals. in my lifetime, we have seen this process of research and vaccines and biopharmaceuticals transform conditions like cancer like lung cancer, which is to be a terminal disease into something that is manageable. i sister died of cystic fibrosis. my relatives with cystic fibrosis can have a normal life. that is because of the partnership between our biopharmaceutical industry and the federal government. i am concerned that the wrong leader might sort f, mess that up. >> even for me some of his past views on environmental issues. i'm almost glad he would not be put in charge of some of the things i have seen he has

claimed about that. i'm not sure i would want him at the epa either so i do not know. thank you and we appreciate what you are talking about. it is important to think about these things i think. >> thank you, joe. honey... but the gains are pumping! the market's closed. futures don't sleep in the after hours, bro. 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. or...you could give these different investment options a shot. the right money moves aren't as aggressive as you think. i'm keeping the vest. i can't believe you corporate types

are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one. (woman) did i read this? did i get eggs? where are my keys? (vo) don't wait while memory and thinking issues pile up. these issues may seem like normal aging but could be due to a buildup of amyloid plaques in the brain. amyloid can build up over time. the sooner you talk to your doctor, the more options you may have. visit amyloid.com for additional information.

your business needs a network it can count on... even during the unexpected. power's out! -power's out! comcast business has you covered, with wifi backup to help keep you up and running. wifi's up. let's power on! let's power on! -let's power on! it's from the company with 99.9% network reliability. let's power on! power on with the leader in connectivity. stay connected with comcast business internet and wifi back-up or get started for $49.99 a month. plus ask how to get up to a $500 prepaid card. call today!

banking stocks have been telling us equities are about to enter the third phase of a bull market. for more on that and the markets and where it is going to want to bring in senior portfolio manager of morgan stanley. what do you mean by that? we have been on this run, some people think trees do not grow

to the sky, others think maybe there is a lot more sky out there. >> you are right. markets starts to anticipate trump winning a month ago. on a short-term basis the market is overbought. we are - causing pullbacks in the market. on a short-term basis. i do not think we will get much of a pullback for four simple reasons. number one, we are in the honeymoon time where it is not reality. it is all about what the next president will do and that will not happen until after the inauguration. reality sets in. i think it is the number one time right now for corporate buybacks. we have entered the - to the - q3 reporting. positioning has been wrong and i think people are looking for opportunities to get in. and probably in the next couple of weeks, you will hear a lot of strategists bring out their

2025 outlook. if you have been bearish the last two years you either switched or got a new job. i think you will hear a lot of outlooks that are pretty positive for next year. to your original point, that is consistent. which is, bull markets are born in pessimism and they grow on skepticism. that was 23 a lot of pessimism growing skepticism and they mature on optimism. that is what 2025 will be a much more optimistic, not the end of a bull market but we are not nearly - anymore. i think investment bank stocks, if you look at them, they are telling you that we are going to have more syndicate more ipos more stock speculation. that is the normal sentiment cycle. i do not think anything about this bull market is different than we have seen in the past. >> from a timing perspective

and to understand what this honeymoon. is that you are describing between now and inauguration. really is it now and inauguration? and then several months past that as things start to get enacted? obviously there will be a big fight over taxes that we know. how do you see that playing itself out? >> i think tradition, the first year of the presidency is a good year for equities because the reality of all of those things you are talking about do not happen on day one. i do think that you will get a continued - i suspect that 2026 will be a more difficult time for equities because many of those things will not play out as perfectly as i think people hope. also, i do not think inflation, we put the genie back in the bottle but i do not think

inflation is dead forever usually it comes back to - two to three years later. the biggest concern is we pull forward the returns for 26 and 27 into 2025.

growing your business is easy once you know the moves. with godaddy websites plus marketing, you can quickly create a website, and ai will customize it for you. get your business out there and get more customers in here. no sweat... for you anyway. create a beautiful website in minutes with godaddy. you are watching squawk box

right here on cnbc. among our top stories, shares of ali baba rising in the market. it has deep profit expectations although sales fell short of estimates. consumer spending has been under pressure in china because of a sluggish economy. domino's pizza catching a bid after warren buffett announced a new stake in the pizza chain and a regulatory binding. the commerce department says it has finalized a $6.6 billion government subsidy to taiwan senate conductor for chip production in arizona. the first major award to be completed under the $50 billion plus chips action word created in 2022. about two months before donald trump takes office, probably raising questions about what happens with that money. futures this morning are pulling back a little.

125 points on the dow. we will talk about some of those comments about being in no rush. the treasury, 443 let's get to - with a look at the premarket movers. >> we will start off with a look at some of the berkshire hathaway names outside of what was just mentioned with domino's pizza. the most recent regulatory filing. it shows that shares of ultra beauty are moving down about 5% after berkshire all but dissolved its stake in the beauty retailer. the shares are underperforming for the year, down about 26%. the ultra ceo previously warned of beauty industry headwinds said more volunteer consumer backdrop here and elsewhere. on the flipside, shares of - 6% right now in the premarket

after the berkshire hathaway trade but more than 404 thousand shares. those have largely recovered after taking a dive earlier this year. in july they reported a q3 - including upbeat guidance as well. we will end with the chip side of things. shares down about seven a half percent after the chip equipment maker posted a disappointing q1 outlook. that firm quoting weaker demand trends in china. applied materials down seven and half percent often seen as a leading indicator for the chip economy.

♪♪ data science can help address some of the biggest challenges in financial markets. if we focus on the mortgage market and follow the life of a loan from origination right through its pricing in the capital markets, our data science capabilities can provide a deep level of insight. at ice we have extensive data sets, especially around three pillars. the property, the mortgage and mortgage performance. this trifecta of data and its history is a bit of a data scientist's holy grail. ♪♪

the home depot is honoring one of its founders in new york city today. nyu langone health will be conducting a ribbon cutting ceremony - $10 million grant to support the evidentiary care center. earlier this week the home depot reported third quarter earnings and revenue above street expectations. the stock has done well. for more, we want to welcome the home depot chair and ceo. he joins us exclusively and onset for the first time. come it is great to have you onset. >> thank you for having us. >> we want to talk about what is happening with the langone

center but let's start with the numbers from earlier this week. you have strong numbers, you raised guidance but that was based on the idea of what you have already seen. it was not about the outlook. why don't you tell us what you have seen since the last quarter closed. >> as we said, we raised our outlook to -2 and half percent for the year. that was based on the nominal october weather, people were able to engage longer. then the hurricanes. we are still seeing pressure on the larger remodel project. when we carried through those better results and expectation on hurricane into q4 but, fundamentally, we are looking for that turn in remodeling to really drive the bigger project demand in the business. >> have you been surprised that mortgage rates have climbed since the fed started cutting interest rates? >> it was a surprise. we are looking for housing to unlock. one of the key reasons people are not moving is because of the high mortgage rates and

locked into the lower rates. our housing turnover at a 40 year low just on 3% of overall u.s. homes turning over. we were hopeful with the rates coming that the mortgage rates would come down but, in fact, they have gone up by the same amount short-term rates have come down. this will come to pass and markets will get to equilibrium but we still have work to do on the mortgage rates. >> we have watched the stock market climb significantly postelection. a lot of investor confidence you see playing out. the question we have been trying to figure out, is that carrying over into consumer confidence in the form of spending? have you seen that? >> we have a different situation. first of all we have an extraordinarily strong consumer. our consumer is gainfully employed, seeing higher wages, equity balances. the highest store value for our customer is their home.

80% of our customers own their home. they have seen tremendous appreciation in their homes since 2019. as much as 50% increase in home values. our customer has a store value they are staying in that home, it is aging. they want to take on, they tell us they want to take on projects that they are still just a little bit uncertain with the overall economy what will happen with tax rates and inflation and ultimately interest rates. there is pent-up demand if you will for these larger model projects. >> does resurging inflation scare you more? would you like rates are to be cut for housing or do you still worry about inflation not being totally conquered? >> i think what translates into a mortgage rate would be the thing we are most interested in. or a heloc rate. there is $11 trillion of

capital equity in u.s. housing. the store value of the entire u.s. housing market is over $45 trillion. $11 trillion of that available for withdrawals to fund larger remodel projects. we use to see something like 80 or even $100 billion per quarter of heloc withdrawal. a lot of that going into home improvement projects. that is down to like $20 billion. >> with lumber and all of the other stuff, you must be one of the largest providers of lumber. you know about commodity pricing on before anybody else does. is the genie back in the bottle? can we relax? >> yes i think on goods and what we are seeing in our business and pressure from our supplier partners, we have digested that rapid increase in prices. >> you are ready for lower rates. >> we are ready. >> does the threat of tariffs change that picture? how much of the goods you are

bringing in are coming from overseas? >> it could. we are sourced over half of our product is sourced in north america but we certainly get a good bit from asia and china in particular. we have been through this before with the tariffs that were imposed in 2017. 25% tariffs. a good percentage of our goods. we worked through that, we work with our supplier partners our supply chains, and to make sure we can still bring the best value on shelf for mac customers. our suppliers have done a meaningful job diversifying out of china in the last four or five years. there is still a significant base of manufacturing of our type product in china. too early to tell with what will happen there but we think with our merchants and our supplier partners in particular, we are the scale player. any tariff that would happen would be broadly dispersed across our industry. i bet on our team to be able to

manage to that the best. the thing we are much more interested in is corporate tax rates. home depot is one of the absolute largest in nominal terms, highest payer of corporate taxes. some quarters in fact, we are the single highest payer of taxes in the united states. keeping that rate down to 21% or even some talk of the rate going lower is terrific for our business. we use that windfall, if you will, back in 17 of lower corporate rates to reinvest in the business. we are building new stores again. we are the only player in our industry and really big box in the united states of any nature where building stores. >> don't call it a windfall please, elizabeth warren is watching. >> what would be a good rate, zero would be a good rate. but, when you think about this rationally and fairly, what do you think is the right place?

>> stability probably matters as much as anything. if we would just have stability with the rates we are at today, that would be fine. lower would be fine as well. every investment we may, we measure on an after-tax cash flow return on the capital deployed. lower rates, you can fund more projects. >> how much of the taxes shifting clearly shifted in 17 for you in terms of long-term planning. when you sit around and say what is the plan for 25, 26, 27 and 28. when does that meeting happen for you. when you say we have different tax rates now and the other question how much of that rate you say that is going to go to the bottom line and that part you're going to invest does that happen? >> we always scenario play different rates for sure. we do not look at our investments and taxes do not determine our investment profile. we are always looking at how to improve the business and make the required investment.

i would not say taxes influence the bulk of our investment decisions. but certainly, on the margin looking at a particular investment of say a single store and you are very close to a hurdle rate of that single store making sense. a tax rate could come into that picture >> i would assume that you are planning as if tariffs will come in. we have heard reports of the people bringing in as many things as they can to united states before january. are you doing that? >> we are not really doing that. we are so far ahead in our cycles all of the holiday products are here. the stores are set, our centers are set. we just signed off yesterday on our 2026 patio program. we are so far ahead we will not jump through hoops on a short- term cargo. >> are you doing longer-term planning for what you could do? >> absolutely and we are

working scenario planning with our supplier partners. we have een a good bit of diversification. of the sourcing that has moved out of china in the last five to seven years, we see about a third has gone to other countries in southeast asia. a third has gone into mexico. and a third has come back into the united states even. >> we should bring up the passing, this past week of someone who was a friend of the show but obviously one of your founders, someone who is very important, bernie marcus. >> bernie marcus, the funeral was last week. an absolute giant of a man. what he did for home depot, the state of georgia and the country and the world in fact in total is a remarkable life. we are forever indebted to

bernie. he left us with really what is the core backbone of our company. our culture and values. those will live on forever. we are just incredibly wasteful to have had the time with him. it was a very emotional week for the home depot family last week, thank you for asking. >> you had a very appropriate center for him too. >> we are orange blooded and i should maybe have worn my orange apron today. but one of the most remarkable things last week, we had hundreds of tenured associates in atlanta line the road into the temple and then later into the cemetery to the grave site. it was such an outpouring of love for truly one of the great americans of all time. >> you are here honoring another one of your founders, ken langone another friend of the show. >> we are blessed. arthur blank and bernie marcus

and ken langone have given back so much to the community. arthur blank, the new children's hospital in atlanta just opened a few weeks ago. a brand-new children's hospital that opened in september. and you will in new york know how much he does with nyu langone. we are ribbon-cutting later this morning, a new ambulatory center in brooklyn. ken will be there and some of the home depot team will be there to support him. >> please give him our best. on the lighter side of things, we have watched the huge skeletons that took over not just for halloween at this point. i see some of them still around with santa claus hats on. these giant skeletons some people keep out year-round at this point. >> i think we have more marketing benefit with him then sales benefit. one of the funniest stories i have heard about skelly is there was a customer that sent a letter that his hoh is always

asking him to take him down. you can only have it up for any given season, decorations for so many days of any given holiday. he just rolls through. he will put red on him for valentine's day he will put green on him for st. patrick's day. he is like i am in compliance with my age away but skelly stays up. >> that is way to go with it. how big of a decorating season is the holiday season? i know you have santa claus and disney characters. >> not as meaningful for home depot, our christmas if you will is in the spring. our merchant team has built a tremendous decorative holiday business in halloween but also for the christmas season. with trees and lights and animated characters. we have great programs with disney characters and our own sort of bespoke internal private brand product. >> how long have you been at

home depot? >> almost 25 years. >> there was a time when, speaking of ken, he is very shy and does not really talk at all. the stock is almost at an all- time high, one of the greatest success stories. i cannot believe someone, another amazing person in his lifetime he built walmart. the same goes for home depot. there was a time when ken was really angry at some of the management. i will not mention who it was at the time but, home depot had lost its way. you historically know what happened in that rough spot? and how to avoid it happening again? doom of the time i'm talking about? >> can would tell you he has never sold a share. he has held that equity. he is the biggest supporter of hours. >> do you remember what i'm talking about? >> we had a supply company - >> the supply company did not work out and even ploys, the

same home depot spirit was not there. how did the company lose its way and how do you prevent that from happening? >> the key for us and what we keep front and center are the values of the company. we have two symbols on our apron. a values wheel things like giving back and doing the right thing and respect for all people. in our leadership intervals are an inverted pymid where you think of an organization for the leaders are at the top of the troops if you will are on the bottom. the founders inverted that and the leadership team is on the bottom. our responsibility is to support mac frontline associates as long as we remember that and never forget that, and every time i talk to ken that is how he ends the conversation. he says do not forget about the kids at the store. >> i'm going to call him and ask him who it was. as i said i will not mention any names. do you remember, what happened? >> it has turned around. it is come right back to the focus. >> frank had a lot to do with

that. >> a wonderful guy and craig is well terrific leaders. >> okay, we cannot thank you enough for coming in here we appreciate your time. >> and being so tactful and not throwing anyone under the bus. >> a new store 61st and first we relocated our store in the bloomberg - >> you do a lot of that. >> how to that new bathroom you put in go is editing working well? >> i had to call the contractors. >> i need one you can step into that the bathtub you open the door to step in. you will see. >> 61st at first and then our brooklyn store on hamilton avenue has reopened as well. >> my team likes that store a lot. >> we do not even feel comfortable at lowe's inches is not easy - which is easier to

get into. >> i do not feel comfortable there either.

>> at university of maryland global campus, getting a bachelor's degree doesn't have to mean starting from scratch. here you can earn up to 90 undergraduate credits for relevant experience. what will your next success be?

at t. rowe price, we help advisors move forward by building agile etfs designed to outperform the index. that's the power of curiosity. better questions can lead to better solutions. t. rowe price. invest with confidence.

welcome back. one of our top stories we are watching, shares a prominent vaccine makers are down across the board following news that donald trump has tapped vaccine skeptic rfk junior to lead the department of health and human services. officials are worried that this could deter more americans from receiving covert shots and what are considered safe, 14 mutilations. lots of questions - routine

vaccinations. lots of questions there. we have done a good job of eradicating things like polio for the most part and as vaccine skepticism creeps into parts of our culture, we are seeing some of those things -'s, definitely do not need apple to - absolutism.

will

welcome back, we are watching the futures. we are standing by with breaking economic data. >> a lot of data. we will start with november the most current read on manufacturing coming in very strong. 31.2. that is really strong the best level since september of 21. maybe manufacturing is starting to wake up a little bit. october retail sales these are the advanced numbers they will get modified slightly in a couple of weeks. if we look at the headline number stronger than expected.

back to back - you will go to february and march of this year. if we look at - we will see it deteriorates a little bit so they made a difference only up 1/10 a couple light. significantly lighter than rearview mirror. some of the numbers make it revised. up 1/10 would be the lightest level going back to may when it was unchanged. now gas remains up also a light look there, significantly lighter than .7. the lightest level going back to april when it was minus 110. now the control group an input into higher numbers on the food chain, that number comes in a negative number -110. we are looking for a number of

3/10 and in the rearview mirror revision starting to come in. -1/10 the weakest number going back to april. if you look at the headline up last month goes from up for tense - doubled also from a path to a full percent. that makes that 1/10 look better. all the revisions are powerful. autos and gas from .7 to up 1.2 and finally on the control number goes from .7 to 1.2 happening - helping the -1/10 look better. if you look at the headline number on import prices expected to be down. it comes in up 3/10. that would be the biggest jump since april. if you take a petroleum up to

tense - 2/10. up equals our last look. some of the debtor back to backs although the strongest number was april. if you look at import pricing this is a year over year number so we take a step back. much stronger than expected. we are seeing import prices move up a bit. what does that say about demand in the u.s.? now if we look at month over month expert prices, government export prices a strong 8/10. we are looking for a negative number. the strongest number going back to august of last year. finally on the year over there, expert prices minus number 1/10. much later than expected. we are expecting down 1.6.

-1/10, how does that shape up? the best number going back to july when it was 1.2. we are seeing prices both import and export stronger than we expected. the big news today that the dollar index closed at a one year high. right now as we sit we are up 15 basis points on the week. even though roughly unchanged on the day. down a couple of tics on the day but up seven on the week. those are numbers to pay attention to. especially after what we saw yesterday as the chairman and others have acknowledged. you could look at the data for inflation the last couple of days. most said it was not that big event deal i think it is

something to pay attention to. the chicago fed president joining us. your ears were burning probably >> i have not seen him in a well i have to have him over. >> he is local. >> is that restaurant is still open? i think that is where used to go. a lot of questions. i thought it was interesting to hear the chairman, the other day put some cold water or at least raise the possibility of what we call a pause. maybe we do not do another 25. coming after a 50 and 25 which

a lot of people, maybe you included were not bsolutely sure was the right move. now all of this hot data just came out. i do not understand it because the last jobs number was kind of weak. i did not know what he was looking at i am wondering if the trump trade is now informing some of the fed's decisions. are you preparing for tariff inflation? >> you have a lot going on in there. >> i know, i think a lot. >> i always clarify the rules say i'm only allowed to talk for myself. if you are asking me what the chairman that you have to reach out and ask the chair. that said, as i look at the economy, the basic story of what has been happening if you are looking for the long arc is

inflation has come way down from its peaks. the job market cooled to something like about full employment where we want it. we did get one month of weak jobs numbers that it is hard to reconcile what does it mean for the long run because we had a bunch of hurricanes and a big strike from boeing. previous to that we had a couple of strong numbers and previous to that we had one weak number. we have to take the through line and i think the through line, as long as we keep making progress to the 2% inflation goal, over the next 12 to 18 months, rates will be a lot lower than where they are now. that is where the neutral, that is where we need to settle. i took from the chair's comments that i like this phrase, we are not in a hurry to automatically get there.

i do think, if there is disagreement of what is the neutral rate it does make sense at some point to start slowing how rapidly you are getting there just to figure out, given the lags of monetary policy, are we at neutral? are we getting close to neutral? the over all through line is, i was saying before the election and i will say now after the election, it has nothing to do with the election. it has to do with what conditions are. to me, the conditions on the dual mandate side are looking pretty balanced. we should be thinking over the next year or year and a half, the rates need to come down. >> what do you think if - 2.8, that is a way still. >> that is too high. >> unless you really do not mean two. >> what do you mean, we really

do not mean two? we mean two. >> i would move the goalpost it would be a lot easier. >> we are not moving the goalpost. >> everything looks like the stage is set for inflation. maybe it does not go back up but, you really see a reason why it would come down with the proposals and i know you said it doesn't matter with the election but the stock market and bit coin. government spending will happen. we will extend the tax cuts probably no taxes on tips. you probably work i do not know if that benefits you with overtime. your overtime will not be taxed. >> i like that vote of confidence. as the chair said in the press conference, when it comes to policy, our job at the fed is not to speculate about that or weigh in on what the judgments are.

conditions change all of the time. if the conditions start to change, we will take that into account. we will get inflation back to 2%. let's be a little careful. backward looking 12 month averages are useful. should look at them but what matters are the new months coming in. if we are getting new months that are as hot as 2.8, 3%. and we get that on an extended basis that is too high. we have stated it is a sacred covenant. 2% we will get inflation at 2%. you cannot look for a new job till you finish doing your job. we will have to get inflation to 2%. what exactly is happening, if you see the important price number that rick was talking about. going up, we have seen clips. we have seen a clip up in import prices that was a bump in the road. we went back to the new months

of inflation coming in around the 2% target. that is where it has to be. otherwise, the fed has to act. >> what do you make of the 10 year it has nothing - done nothing but go up. can you give me like 20% is because of that 20% because of that. part of it is from trump. >> i think some component, we had to figure that out. we have to monitor the long rate. the fed is in the business - how that translates into the wider market, translates both with the lag and something about expectations. it is clear that in the realm of possibility could be, if they thought growth is going to be higher that would affect what the long rates are. if they thought the feds short

rate decisions, the rates would go down at a slower rate. that would make the long rates higher. they are up in the near term but they are not up that much from where they were several months ago. the arguments in washington affect the long rates but our job is to figure out the longer through line and as long as we stay on a path to getting inflation down to goal and the job market is not falling apart, that is the through line we want. so far, the through line is basically still that. unless the conditions change, i am still feeling good about us being on a 12 to 18 month path

of getting the rates down to something like neutral. >> we have kicked around the notion that we did have a bull market and bonds we may never see again like for 40 years. now we have had a little bit of an inflation more than a little bit of an inflation scare. now it looks like it is back under control. running a deficit this year that is bigger than any of us probably would have hoped for. the size of the fed balance sheet. all of these things, there are people that lose sleep over whether the bond vigilantes will come back with a vengeance. the dollar hit a new high. do you think we can have a longer do you think the bond

bull market has resumed? >> that is the same way of asking a rates going to go back to what they were before covid. the rate was zero. we were at zero for a long time. real rates of negative numbers. that is better than saying do you think the rates now are neutral. i think we are still in a restrictive position. that said, on fiscal policy, like i always say, our job, like the midwest, whether is no bad weather, only bad clothing, those are the conditions of the economy. if congress does whatever they are going to do and that affects employment and inflation, then the fed has to take that into account but only directly. we are always watching the conditions in trying to figure

out what is going to happen.

business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities.

tesla, i think will be worth three or $4 trillion $5 trillion in 10 years based upon the business plan i am aware of. then, 11 believes longer-term, it will be worth $30 trillion. welcome back that was ron baron on with becky earlier in the broadcast. heavily invested in tesla and elon musk - for arc innovation etf up about 5% sin the election of donald trump close to 15% of the etf is invested in tesla. i should also note that - up

today or i should say up recently on a longer term basis. it is great to see you. you have been a big - of elon's most from the beginning. the question is, when you see him in this role in florida and obviously his stock is up too but to say do self he is able to manage these things? what first comes to mind when you see this? >> what first comes to mind is i think he will do a lot to bring efficiency to government. what we are happy about is he will not be a part of government per se. he is very careful to say he will be working from outside the government with the deck ramaswamy which is also very good especially from a healthcare point of view. they will use technology and other sensible measures to rain

and - rein in government spending. we have faced this russian about belong for many years as he started one company after another. we are at the threshold of a convergence among any technologies. a.i. being at the center of it. and proprietary data. he has more proprietary data from these companies than i think any other ceo. >> when you see the stock up as much as it is even since the election and his role in it, what is the rationale? what is the economic rational in your mind for that? >> there are two reasons one in last earning call for tesla, we got more information about tesla's autonomous strategy. i think after the election as

we are thinking about what might happen, right now, autonomous regulations are state by state. there is federal oversight, mostly for safety. we would not be surprised if the regulations become national. if that happens, tesla is in a really good spot. >> you think uses his influence over - >> that is safety and i think if you look at all of the accidents and it is interesting that the media scrutinizes everyone of tesla's accident out of the 45,000 per year which involve death. if you look at the conclusions after going in detail into these accidents, it has included, it has concluded in the past that tesla has the safest cars on the road. >> what i'm trying to

understand, the stock has moved, materially since the election. as you know, i think he is a genius, elon musk and i think tesla has done wonderful things that i'm trying to understand. the price action, i could see someone make an argument that tariffs that will prevent other tv makers from china to come in should be helpful. i can see an argument that if the i.r.a. goes away and certain subsidies go away to a ford and gm given where tesla is in the marketplace, that should be a bit of it. i could see although i do not like the idea of him having influence over - per se because i think it is difficult to have somebody in the business influencing the regulation of that business works. maybe they open things up and therefore he has a greater opportunity to move autopilot and everything ahead faster. the question is, those things and maybe others, does that

count for a 30% move? in your mind? >> yes, it had been very depressed before that. as you know, we put our research out there. we have our team - our price target is $2600. in five years. that research is out there you can find it you can look at the model. change anything you want. autonomous is 90% of that valuation. we think the probability of autonomous has gone up dramatically. - already doing it and they have broken through a lot of barriers for tesla in terms of introducing the concept., tesla with 7 million robots on the road already, learning the roads around the united states and the rest of the world. if we have national legislation, we will be in a

good place. >> where do you land right now on bitcoin? you talked about $500,000 being the price point. i do not know if you changed the time horizon for that given what has happened. maybe it has been slower or maybe it is speeding up. what do you think actually drives the price action? >> we have a 20 30 target in our base case around $650,000. in case it is between one and $1.5 million. whenever, we were the first public asset manager to gain exposure to bitcoin in 2015 at $250. we still at $90,000, i think we have a long way to go. why? first of all, we are getting regulatory relief here. i think that is one of the most important things coming out of this administration. we will get regulatory relief on all kinds of innovation,

including healthcare. the other thing is, we are looking at that coin now. being looked at as a new asset class. not just a global monetary system. a new asset class. that means institutions and asset allocators generally are saying wait a minute, this asset is behaving differently from all of our other assets. i think that is the next big move. if you look at years where that coin has halved and inflation rate has gone down it usually has had a nice big move. >> i have to ask you one tough question, back in october, - wrote an article that said why is anyone listening to you? the author made a point at the time that the funds, the etf fund had lost $13.5 million of shareholder value. i do not think it is the same today. it is better than that but, why

should people listen to you? by the way the author gave us a hard time for even doing interviews with you. >> it is interesting, we cannot fire our clients. i would say we are, the flipside today of where we were in the late 2021 timeframe. we were saying back then hold some powder dry, that did not happen. today, we are in the opposite situation. we have been great on tesla, bitcoin, - at $.40 was our first purchase. now, we want to go after healthcare. gene editing looking at jd vance, elon musk, they are all talking about this new wave of cures had. stay tuned. >> how should we think about the volatility of your fund in some of these big bets and the way you are making them?

i ask because as i mentioned, there was a time frame are beasley 2020 that etf blew up. your etf blew up in the best way possible up 150% or something. then of course, if you look at a longer term chart, a lot more complicated. for those folks who watch us and i will ask you questions and they are listening to your answers intently, what are they supposed to think? >> two things. we have a volatile fund. we should not be a huge slice of any portfolio. we are more of a satellite strategy now. although we think this is the way the world is going. also if you take out that boom bust around covid which, caused all kinds of interesting behaviors. you will look for the lagship you will see a fund that has taste for six years. the technology around which we have centered our research are so much more advanced. we think we are a very good complement to the broad based

benchmarks out there because we do not look anything like them. and the biggest depressant on the fund recently has been in the multi-healthcare life- sciences base. we think that will change and it will change quickly when it does. the rubber band is stretching. we are now seeing companies like - on the road to curing diseases. which is a different model from traditional pharma. >> we appreciate talking to you and i appreciate you taking those questions as well, thank you. let's get a final check in the markets as we are about to have things over. the dow futures indicated off by 160. nasdaq down by 185. the s&p down by 32 and the market for the week is indicated off. we are looking at a down market. at treasuries, the yields have been timing and they continue to do so.

it has been a bit of a whipsaw since the election. that does it for us today. we hope you have a great weekend. we will be right back here tomorrow. good friday morning welcome to squawk on the street. stocks continue to unwind. some of this postelection rally is powell on thursday suggest the economy is signaling no hurry. december cut odds fall below 60%. pretty solid. shares of vaccine makers extending thei