broadening the search for the treasury secretary. it's monday, november 18th, 2024 and "squawk box" begins right now. ♪ good morning, everybody. 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. on this monday morning, you will see a mixed picture when it comes to the futures. the dow is indicated off by triple digit. s&p futures are up seven. the nasdaq is indicated up close to 100. 93 right now. this comes after stocks fell on friday. the dow was down 306 points. s&p down 1.3%. the nasdaq down 2.2%. for the week, it was the worst

week for the s&p 500 and nasdaq that we've seen since the first week of september. it does come after a big run-up the week before. let's look at treasury yields. yields are continuing to climb. ten-year at 4.46. the two-year sitting at 4.30. we have a lot of news for you starting with this. spirit airlines filing for bankruptcy protection this morning. the carrier announced a deal with the bond holders. this was expected and it expects to operate normally throughout the process. spirit expect third quarter margins to be 12% lower year over year and sales will be $61 million lower as well. the other big news, tesla shares are jumping again, after a bloomberg report that says president-elect trump's transition team, surprised about this, making a framework to make self driving vehicles. this would be a top priority for

the department and the speculation that elon musk would have a large role. i think that was -- i thought that was already built into the stock price. i'm a little surprised. >> i am, too. i guess hearing it straight up that it's actually going to happen would be a big deal. it is such a big part of tesla's move and what they have planned next. it would have to get gone.done. we'll see what happens. >> interesting to see if states, this i don't know, can states overrule nhtsa. there is arizona and california allowing these vehicles to drive on the roads. other states have decided not to do this. if nhtsa, i don't know if nhtsa said, yes, self driving cars on

the roads all the time. could they do that? >> i guess it wouldn't have teeth unless the federal funding for roads didn't go away. that's how the federal government has pushed through state and local things in the past. they tie it to federal funding. >> with cars, i'm trying to think, epa standards. every state has the standard of what kind of car can be sold in the state, but what about driven in the state? >> this better not happen. i just bought my carrera. now i own the f-ing thing. it's not self driving. there are seven speeds and a clutch. i'm interested in this. i'm also -- i don't know. what does it mean? cover of "the wall street journal" betting on an open market. >> it's like the "sports illustrated" cover?

>> you have investors bullish at 49.8%. that's bullish. all of the money moving in the exchange-traded funds. it is all happening at 23 times earnings. that's fine. last week, we were down a little. liquidity seems like it trumps everything, not to use that word. it overrides everything. we have tom e on later. >> yeah. >> liquidity and government regulations becoming more wider. >> lower taxes. a lot of reasons why everyone -- what did jamie dimon said? dancing in the streets for bankers and possible mergers. it seems too patent and on the advisors are now considering a new slate of treasury secretary. the messy fight has irritated

trump and his team. among being discussed for the role is kevin warsh and marc rowan. we had bill hagerty. we knew he was in the running. continue to be in the mix. scott bessent and howard lutnick. kudlow was mentioned. reports say an aggressive campaign by lutnick and allies to land the job irked president trump. elon musk tweeted about the candidates on saturday. he said my view for what it's worth is that bessent is a business as usual choice where howard lutnick will enact change. business as usual is driving america bankrupt. we need to change one way or the other. >> to say that -- he's standing

right next to the president. that's what i was wondering on the plane and going to the ufc fight and the garden. >> the public pressure. you wonder if that irritates -- >> does that irritate him. why are you tweeting? tell me what you think. you're sitting right here. >> he has 205 million followers now, i guess. >> really? >> a new record. i saw that. >> the other question is the business as usual people. >> yeah. >> i don't want to suggest that -- that kevin warsh or marc rowan or scott bessent are business as usual. i think the markets like business as usual. >> one of the articles i read suggested that president-elect trump doesn't want to rattle the markets. he's fond of looking at the stock market as a barometer of how he's doing. business as usual. >> we all thought and i still

think steve mnuchin did a remarkable job. >> i did, too. >> the articles suggest he thought mnuchin was off the reservation doing his own thing. >> i think they were pretty close. i don't know. trump would have not had him there any more if that was the case. >> it doesn't take much to do something that probably irks president trump at some point. not that is a huge fault. you know, he's probably pretty tough on everyone. joining us now to talk about that, trump's other picks over the weekend. mike allen from axios. there was an article, mike, that maga is just embracing the chaos. they love it. they love the chaos. we had some. we had some, you know, rfk jr for health and i don't know what's going to happen to matt

gaetz. more than half republicans are saying whoa, hold on a second. you have the treasury secretary. do you have anything new on that? >> hold up, mike. we have to get your audio. start over. >> he's flying high at the airport. >> does someone not shift a switch? go ahead, mike. >> this is a very unusual situation because as you've seen president-elect trump has been pedal to the metal. more than half of his cabinet picks already out and american university professor over the weekend gave some stats. this is like seven times faster than president biden picked his cabinet. here, he is slowing his role on treasury. he's saying stop. let's look at some new candidates.

i would not expect action on this today or tomorrow. there's going to be a serious look at kevin warsh who your viewers know very well and marc rowan. they have they will be down at mar-a-lago. there was a big list. the two of them are on it. the governor where i live, virginia, was on that list. took himself out. governor youngkin took himself out. you got what the new york times is calling a knife fight between howard lutnick and scott bessent. the president was like whoa let's look at other candidates. the situation you have now, there could now be a contest for treasury secretary where the number one job as you guys suggested is reassuring the markets. i 100% agree with your read of what's in his mind. if you look at the candidates

and look at trump. trump likes pedigree and trump is obsessed with the markets. that's kwlwhy i can see kevin wh as the candidate. he was the youngest fed governor. he is someone the markets love and i can see being a very strong candidate. second choice of the back-up job that may be offered to some of the candidates is director of the white house national economic council. >> the fed job is not going to open up for a while for warsh. >> funny you say that. you are spot-on, joe. that remains his long game, but the thinking in his world is that could come later in the trump term. >> he -- i think kevin has the ear of a lot of really smart people, as we know, druckenmiller and others.

this would probably would be taken positively to some extent, but he's no -- he doesn't want to flood the market with liquidity, i can tell you that much which helps bull rkets. he has been a critic of the fed and the guidance and how long they were at zero and the cost of money wasn't and capital. it was too easy to go places where it shouldn't have gone. i don't know if that's perfect for what a real estate guy is looking for. low interest rate guy. >> the flip side of that is i mentioned that the number one thing president-elect trump is looking for is someone to reassure the markets. market stability and market satisfaction makes everything else that the president-elect trying to do possible. he knows one of the reasons for his decisive win was the direction of the economy. so, he's going to be judged very

much on that. that's why this is such a central pick. that's why all these picks that we're seeing are establishment types. people that would be acceptable on wall street. you are not seeing the left field picks. the more impulsive picks that you saw for some of the other jobs. >> that's interesting. yeah, this really matters to trump. he doesn't need to send signals to the disruptors that want everything shaken up. that's funny. >> that's a perfect frame. >> the department of defense. >> or health. stick this guy in here. >> it is going to be interesting to see how this plays out. mike, what are you hearing just in terms of whether these candidates will or these no, ma'am nominees will be pushed through the senator recess

appointments? what's the latest? >> the white house doesn't know, the mar-a-lago white house, doesn't know yet. they're keeping all their options open. what i'm told is president-elect trump is really feeling mandate. that's why you are seeing the defiant, aggressive picks. there's enough of them that they figure if they lose a few of them that they still will be able to move the agenda. i'm told what's in the president's mind is he is saying these are people who are fighters, these people are people who see the system the way i see the system. they feel victims of the system or see the system as the enemy. he's going in to do what some people have called the tile takeover of the government. that's the message that these picks send. he is opening up different ways to do it.

could we do some without congress or do some by pressuring congress? a very interesting twist shared with me is they see the rfk confirmation hearing as a feature, not a bug. they see it as a massive platform for the robert kennedy views on health. what they said to me is sure, the senators are going to ask him about vaccines and fluoride, but he will talk about how the health system is messed up. they actually are optimistic. >> he's no matt gaetz. i think rfk jr is a serious pick. for thune, let's see if you agree with this. he's a young guy that i think really wanted, you know, majority leader. i just don't think you would do a recess appointment for matt gaetz right out of the box, would you? that wouldn't be the way you start -- how long was mcconnell

in, mike? 20 years? longest ever, right? >> by the way, i love it says something about our government that we can sit here and say john thune at 63 is a young man. >> that might be it. he looks young. >> a lot of trump's picks are actually young. 40s. young 40s. that's interesting. >> he could go 20 years. mcconnell. it could be a 20-year stint as i'm sure he's oping for that. if they don't release a report and mike johnson says they are not going to release it because he's out of the house. if they don't release it, i just don't see any way it ends up happening. more than half the senators -- i think it is an intention of more than half not to let it go forward. >> here's the math that confirms your hunch there.

republicans can only lose three senate votes and they can have former senator jd vance break the tie. you can count four senators who might go against him. a couple of senators who have been against the specific picks. there's a couple of senators who are just establishment oriented toward the system. you can easily get to four. there could be new information come about about any of the nominees. i heard that there's more attention inside mar-a-lago being paid to vetting since the news stories of the candidates. there was vetting, this is sometimes miss misportrayed in the press. this is the usual fbi checks and all that. >> mark, two other questions.

arc rowan, one of the smartest on wall street. he runs a publicly traded firm. the stock not down that much this morning in the pre-market which suggests to me that maybe the market doesn't think this is in the offing. what do you think about that? >> that's your world more than i. marc is a fascinating pick, as you know, came back to run apollo. i hear is coming from from asia for his mar-a-lago meeting. so, two very impressive candidates who check all of trump's boxes and that's why he's saying give me new names. by the way, we're chatting about ages. young, by washington standards, not by the stan dards of the table. kevin warsh is 54.

>> the other stock this morning is ripping, tesla. the idea of making autonomous vehicles regulated and creating a framework that is influenced by elon musk for the stock to be moving the way it is. becky and i were talking about how we thought that was already baked into the stock. >> the stock's going to move with the headline like this. what i can tell you about how elon and the president is thinking about these questions is why can't we do it. they are not thinking what we can do. they look at government and they look at cuts and they look at the frameworks and they look at regulation and they say what can't we do. that's a very important lens, insight, as you look at the headlines. i can tell you everything i'm hearing from mar-a-lago is they are feeling aggressive and

they're going to put -- they're going to try a lot. they have the courts on their side. they have most of congress on their side. this insight that the president feels more confident this time than he did eight years ago and he knows the players and knows the government and he trusts his gut. i'm hold that is a massive factor in all of these conversations. >> last question for you, mike, at least from me. when you see a tweet like the one we saw over the weekend from elon musk saying his pick would be a lutnick over a scott bessent and you also know that musk is sitting, physical next to trump, both on the airplane and at ufc fight over the weekend. this is an authorized tweet. he will tweet this out or does trump say you should tweet this out and make it clear that's his

opinion or do you think that he is off the reservation and this is what he says he wants to say and then -- and then trump say why did you tweet that? >> andrew, there's a third way. you and i talk all the time about palace intrigue. this is literal. you have the king's court at mar-a-lago. under the chandelier in the tea room. musk helping make these picks. there's a lot of games being played here and who knows what was behind that tweet. could that tweet be a favor for howard? i wouldn't take anything coming out of mar-a-lago at the moment at face value you. there's a lot to read into it. a lot that we don't know. i can tell you the big picture is the president and musk very

much an aligned. you saw that with them next to each other at the ufc fight at madison square garden this weekend. i hope elon has more than one occupy mars t-shirts. he is wearing that t-shirt in every single photo. >> he has a good laundry system at mar-a-lago. they'll overnight the cleaning. >> no doubt. >> mike, i couldn't think of anything -- i tried to figure out. it is not really entourage. i came up with the rat pack. i was thinking dino and frank walking in. it was -- i don't know. it was i'm not saying i want to be there hanging out or anything. it reminded me of look who's coming in here? there's rogan and the guy gives him the belt and it's crazy. >> and x, which is now so

powerful and jim and i are up this morning on axios with the behind the curtain column about the mega trends from 2024 that well last past this cycle. the massive one is the x forum for conservative conversation. so changed that ecosystem. on their, tons re this weekend, conversation with the rat pack and the president-elect and former democrats. >> the other thing i was thinking, republicans will never been cool, you know what i mean, hollywood? but cooler. you throw kid rock in, maybe. you look at springsteen and leo and clooney and whomever. $1.5 billion in days and you are the first democrat to lose the popular vote in two decades

given all those endorsements. useless. >> joe, that is a massive conversation in maga world. they say we have the culture. even the athletes doing the trump dance. >> yup. >> and so much of the trump stigma is gone. story up on axios this weekend by my colleague talking about how the formerly secret trump voters are now out. being a trump voter now not only not shameful, but can actually be cool. >> oh, my god. okay. i just -- as a feeling person, i'm feeling for the people that aren't -- that still thing orange man bad. i don't know. they got to leave. i think they feel they have to move, probably, at this point. please don't go. thanks, mike. see you later. >> the rat pack edition. thanks for your coverage. >> by the way, well done at the airport. somebody want to know why he wasn't in the united club.

>> you are not leaving, mike? you're not headed out for good? >> headed out, but i'll be back soon. >> portugal. you can still get the -- you can't get the golden ticket. the golden passport. >> i don't fly quite as fancy as joe does. >> i bet you do. >> jetblue. >> i bet you do. if you are using amex miles to some day hope to get to the front of the plane. you're playing like me. >> see you on jetblue. >> safe flight. when we come back, nvidia shares are dragging down the dow this morning. there's a new report that says its new a.i. chips are overheating in some servers and some set ups. especially the ones with the big data centers use. that stock off 1.8%. later, we have tom lee's latest market call. "squawk box" will be right back. 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?

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shares of nvidia are falling offer the report in the information that the blackwell chips have been overheating when connected together in servers. the chip maker has asked the suppliers to change the design of the server racks to overcome the problems. it has told reuters, it is looking at the iteration changes which are normal and expected. questions at this point whether the big server companies, meta or amazon or microsoft would be

able to get the chips in in time. there is not a lot of competition. i'm not sure where anyone will go. nvidia chips are down 2%. >> not the chip itself? >> when you have 72 or more in array and that's what the data centers need. >> the generation before the blackwell. >> i told you everything i understand. >> i'm done, too. >> i'm done. >> you know what color they come in? i ask. >> gray. >> mostly gray. i can't get a nice sky blue? >> i don't think so. samsung shares closing higher 6% overnight in outh korea. the company announcing the buyback of stock. the stock had already jumped more than 7% on friday after the company reached preliminary agreement with the largest workers union which went on strike in july.

let's tell you what's coming up. warner bros. discovery stl eted the suit with the nba. details next. and later, bill dudley will join us. "squawk box" is coming right back. ♪♪ [inner monologue] this is going to sound crazy. but i know these attack vectors. oh, had a little upgrade have we? ♪♪ okay, so that's how you want to play. ♪♪ (vo) what does it mean to be rich? maybe rich is less about reaching a magic number...

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visit amyloid.com for additional information. cvs health announcing four board members along with glen view capital and ceo larry robbins. the board of 16 members will allow the company to focus on value creation and performance. glen view started discussions in

september with the company's outstanding shares. larry robbins will join us at 10:30 a.m. eastern time. the stock up 1.3%. warner bros. discovery settled the breach of contract with the nba according to the wall street journal report. down to $9. that deal is expected to be announced as early as this week. warner bros. will lose rights to the games and post season after the season. the settlement will give it rights to the nba content domestically and abroad. separately, warner bros. licensed the deal with disney to espn and abc next season. it features charles barkley and shaquille o'neal. >> that is an interesting twist.

charles barkley has been outspoken about it when they announced they would lose the deal. he said i guess they are going to fire us. i'm not sure how it works. >> i assume they cover the production costs. they are the producers of it. maybe make money or come out flat. the question, the bigger question, the bleacher report piece of this. they get to use the content for the next ten years, joe? ten years or something like that. if you are not getting the games, they have a huge digital business and if you were effectively blocked from using the rights or didn't have any rights to cut 30-second or 60-second clips, that business would disappear. that usiness has real value to them for some period of time. >> i was looking at the stock. >> discovery had already started. >> he is doing all he can. $6.60. just under $10.

some progress being made. what was it? do you remember -- it wasn't like a meme. it was almost a meme. $52 a share back in 2020. i can't remember why. something happened and it didn't last long. just trying to remember. i usually remember things like that. we do remember for a lot of the time in the 20s. it got all the way down to 6. that is sort of -- it is almost a media proxy for how difficult the business wbd is in. a lot of the legacy media is in the same boat with the same pressures. >> there it is. 21. >> is there light at the end of the tunnel? something ran it up. >> it was something in the pandemic. >> i'll look it up. >> on the cvs story. we have mark who was at aetna.

we will talk to him later this morning. he is joining us around 7:20. we'll be with us to talk about that. >> cool. i went back to look, joe. i can't -- this was too long ago. we'll get to the answer after the break. >> i said kidding david. >> there was that moment. >> yeah. >> a moment in time. a moment in time, folks. the art market could be facing big challenges during the fall auction season. it is a moment in time. robert frank is going to break it down for us. what's going on? back after this. deadline in five! finished and sent. [sending swoosh] we have tight turnarounds. at&t business helps us deliver. >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. 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]

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good morning. welcome back to "squawk box" live from the nasdaq market site in times square. look at the futures. things have worsened in the dow. it's on a bright spot this morning. robert frank's here. robert. good morning, joe. the fall auction season is a challenge for the art market and

more than $1 billion of art is headed to new york. christie's is hoping this is the turn around. the art market has been in correction now for two years. auction houses betting that rising stock markets and stronger business confidence will finally bring back bidders at the sales of $10 million which has been the weakest segment in the last two years. the headliner this week is the masterpiece empire of light. it is headed to auction tomorrow at christie's. the estimate is 9 $95 million. sotheby's is selection the miller. her monet painting, the most famous one, expected to go to auction at $60 million. the headlines this week will be dominated by the duct-taped

banana. it sold at miami five years ago. the price then was $120,000. the estimate this time around this week is over $1 million. inflation. bananas are more expensive. for more on the art market and where the wealthy are investing, check out the newsletter at inside wealth or scan the qr code at cnbc.com/inside wealth. >> all right. we ex-pended our total knowledg of the blackwell chip in two sentences and on this, i'm equipped to do the same thing. that looked like an incredible painting. the 3d nature. empire of light was a movie. tell me about that. >> he plays, notice daylight in the sky, but lights on. >> it's a painting? >> a painting. he was a famous surrealist.

these paintings have exploded. they are so engaging to look at and timeless. >> can we talk briefly about what you were talking about off air before? we were talking about the candidates. >> sure. >> we are talking about marc rowan or scott bessent and what kinds of things they have to divest. we think marc rowan would take the job. he is going to go to the meeting, but do you take the job with stock in apollo, but family office stuff? >> it is very complicated for people with private equity portfolios. you remember hank paulson could set his goldman sachs stock. that was not a complicated deal. when you have a complicated one with a wealthy guy with a private equity, it is hard to sell and marc has a very complicated portfolio not just the apollo shareholders, but

private family office. this is the reason paulson has to back out. i think rowan. >> john paulson? >> i'm sorry. he was also considered and took himself out of treasury secretary running for p. he said it is too hard to sell everything he owns and he is going through a divorce. marc will have the same issue. >> is there any key-man issues for lps, limited partners? that, i know, people talked about jared kushner. he is the key man in the fund. it is hard to unwind that fund. this is a bigger company. >> they have a deeper bench. i think that's a good point. maybe why apollo stock hasn't moved much in anticipation of this. >> they will lose jay clayton. >> that's possible. i don't want to say -- he's

the -- he's the executive chairman of the board. >> tell me why i should pay more for the banana over the duct tape. >> is that a real banana? >> it is the real banana. it was performance art when the artist ate the banana. >> this is what's wrong with modern art. >> many people would argue that. this is going to be the thing that everyone talks about this week. the $1 million banana. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

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president biden is lawing ukraine to use long-range missiles in the conflict with russia. the arm y tactical missile systems and supplied by the united states. for more insights on this move, we bring in michael o'hanlin at

the brooksings institution. mike, you were the first person i thought of when i heard this report. what does this mean? it sounds like biden is trying to help zelenskyy maybe get the best possible positioning he can before the trump administration comes in and potentially forces a deal with russia. >> hi, becky. that's part of it. i also think it's just sort of the most natural relatively small, somewhat symbolic gesture that can be made in response to the north korea involvement. as you know, the permission to use these weapons is limited to that very small part of russia where the north koreans are fighting to drive the ukrainians out. moreover, we have known this kind of decision might be coming for a long time. president biden's made decisions like this before. so i doubt very much that russia and north korea allow themselves

to have big, true concentrations or vulnerable headquarters within range of the missiles. moreover, it seems we told the world the decision before we gave ukrainians permission. the element of surprise has probably been lost. i think it has to be seen more in the context of the diplomacy of the war and trying to make sure the north koreans don't come in in larger numbers rather than any effort to make a decisive military difference on the battle field. >> things have shifted as a result of the election. how would you read it? how would you explain it? >> that's a great question. you know, i think president trump's not wrong to want to end this war. his instinct is reasonable with the narrow american national interest. i think it causes some moral qualms. on the other hand, those of us who do this work full-time, we don't have any great answers as

to how to change that. maybe the best thing to do is stop the fighting and try to build a staple peace. i don't doubt the instincts. how do you convince putin who wants more land that now is the timefighting? what is the question about the nato membership for ukraine? that is the longstanding question. russia hates it. it's like seeing red for russia to see ukraine in nato. are there other mechanisms we can think of to provide ukraine long term security without being in nato? at least having that as an option. these are the kind of strategic issues to gain leverage overall the parties in question that president trump will have to think through and right now, i think he's going on his instincts because that's his way of doing business. that's fine when his instincts are good, but it doesn't provide

a good outcome. he had a good instincts talking to north korea five years ago. it didn't lead any where because he didn't have a follow through. now what is the strategy to get leverage on russia and i don't know the answer yet. >> mike, the world feels like a much more dangerous place than it did four years ago or eight years ago. things are complicated from the geopolitical standpoint. how are you feeling about things? are we safer with a trump administration coming in or not? >> i don't know about that, per se, becky, but i would say, things to me feel better than three years ago. i'm not saying president biden has a fantastic foreign policy record, but i would say ukraine is not going to lose this war outright. biden gets some credit for that. i would also say the u.s./china relationship while still fraught, is still semi stable as we just saw president biden and xi jinping talk in south america about where the relationship

seems to be. so, things could be worse. things can always get worse. i don't sense that either russia or china on the path to war right now. that may seem like faint praise, but it is pretty important and trump has to continue that momentum. >> michael, thank you. we appreciate it. >> thanks, becky. >> "squawk box" will be right back. solutions. t. rowe price. invest with confidence. i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll.

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welcome back to "squawk box." time for the planner. we hear from walmart and lowe's tomorrow. wednesday, target and tjx and nvidia. on thursday, retailer gap and

deere. up next, pat ryan is going to join us. his family is funding the northwestern stadium. the most expensive college football stadium ever. we're going talk about the economics of it and what it means right after this. vehicles a tected with laser measured floorliners for the front and middle... plus a cargo liner for the rear... and seat protector for furry messes. and with the pet feeding system he'll eat safely his entire life. add a cupfone to make sure the phone is secure while driving. find these american made gifts or get a gift card instantly at wt.com.

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♪ ♪ when my in-law comes a-knockin' ♪ ♪ i can open, maybe lock it ♪ ♪ if my home just had a brain ♪ >> it is 7:00 a.m. on the east coast. you are watching squawk box. let's so you the u.s. equity futures at this hour. little bit of mixed picture, dow off 155 points nasdaq 85 point higher. s&p will open about three points higher. the latest on the trump

transition that we discussed at the top of the show, president- elect apparent options to leave the treasury department now expanding which we have talked about quite a bit. it is fascinating and we had a conversation at the top and i had not seen the journals lead editorial, disruption is great, but in the treasury department may be a more conventional candidate might be something that the president-elect would prefer since he loves the rising stock market so much. >> absolutely, markets are watching this, still no white puff of smoke mar-a-lago announcing the secretary of treasury. going into the weekend the two lead candidates were scott besson who was seen as the insider top choice and howard let nick who is overseeing the trump transition who gives him a bit of a insight track, then elon musk weighed in on social media. now comes the reporting

from the "new york times" that trump may be moving on from both candidates and opening the listed two other people, or more federal reserve governor kevin morris and mark rowing. not care on with the sure on what the timeline is but the times reports that that lutnick has gotten a trump's nerves. we did get a choice for energy secretary, chris wright is the ceo of timber denver-based energy company. he went on camera 2019 with a group of employees to drink what he said was fracking fluid in order to prove it is safe for humans. he also serves on the board of a nuclear power start up back by open say i ceo sam altman. trump also said wright will serve on the new counsel of energy which will be led by

doug burgum who is trump's choice for secretary of interior. we have a lot of moving parts and the big selection for treasury, no word yet on where trump will go. as you say this idea of the stock market watching the so carefully, trump likes the rally and he wants to continue that. >> we will see we had we will talk to tom later about, bullishness is rising, a lot of people said people were dancing in the street. i don't like it whenever the cover of a newspaper says investors are betting on a market meltdown, that makes me scared. especially with 23 times earning with a lot of liquidity. can you tell us when we will hear? will it be this week? >> i was down in palm beach all week and we thought this was coming each day, basically and it did not come. you get the

sense that trump does not like his options earls he would have made a pick between bessent and lutnick. maybe it means we have to go through a new round of interviews. i would say at least a couple of days but that is from the outside looking in the. >> possibly more than a week, mark is flying in from asia additive kevin is going down there he knows him well. and then if there are other names been granted about. >> we pointed out earlier, he is still far ahead of where the biden administration is in terms of naming people. there's not a rush but he has time before the inauguration. >> do you have a house down there? are you done there covering this? >> i was on duty. it was sunny, there were palm trees but i was working the whole time. >> you were up early with us every day. >> a big story right here at the table, chicago's big ten team northwestern university is

scheduled to play football in 2026 and what will be the most expensive college football stadium ever built. it is a $850 million investment all privately funded. joining me now is the man behind that funding, pat ryan junior he is the co-ceo of ryan sports development. his family is paying the lions share of the investment and it is a fascinating thing. good morning. how did this come about? it is going to cost $850 million , it will be owned entirely by northwestern this is a donation from you and your family. how much is the university putting and? how much are you putting in? speak to the economics. >> university is putting in the money that is spent to renovate the old stadium. the old stadium would have been structural and shoring things up . you don't get a lot for that money. when you step back and realize the last stadium was built 100 years ago, this is a 100 your decision.

you need to make a 100 your decision thinking about what it is for. done wrong it is mediocre mediocre, don wrong it is expensive but it becomes an asset, it is a 365 day space for the campus community, for chicago. it is a lot more than a football stadium if they are built right today. >> that's what i was asking, in a world of live events, how does this change it is not just football, it will be everything, i mention of taylor swift want to do a concert she would do it there. >> we would love to have her. the world has changed and we want experiences. you think of the big ten games on tv you can watch from your couch or sports bar. why go to the game you want to express it with other people, there are four things that are different, premium experience for everybody, everyone has a seat, a lot of college football stadiums people are in the skyboxes and everyone else in the bench. everyone has a seat, everyone one is -- >> who gets the revenue from this?

the university? >> the university. >> when you decided to do this and you thought of all the things you could use your money for what was it about this that was appealing? >> this is a and for us not or. our family gave the first- generation scholars college scholars, nanotechnology, performing research this is a and not or. when you make a 100 your investment you have to think of what impact will this have on the community? old school football stadium is a seven-day white elephant. this has to be a asset for the community. >> do you think it changes the economics for the university long-term and the kinds of athletes that they can attract, therefore the sports licensing deals that they can get? is there a economic piece to this for the university itself beyond the donation itself? the ancillary income but i imagine this can create for them?

>> first and foremost, the university competes differently for student athletes. northwestern degrees matter to the students, they still want to play in nfl but they care about in northwestern degrees. that being said, it is attractive to everyone. the fact is, if you think about where the stadium will live it is a that. there is a bet we can draw the chicago corporate community this is chicago's big ten stadium and big ten football, college football is a number two sport in football. >> i think of it in terms of the nil. i hear what you are saying in terms of it being a draw. if you are looking at college athletes, they are basically playing on a professional level and you robably need something like this to draw them. this may be the new face of college athletics particularly in the big ten.

>> tried to do everything in the highest order of excellence in a place like northwestern and if you make a 100 your decision you need to make it right. that being said, having a home field and an environment to play in, it is not just football, we could host the national chebyshev lacrosse team. you have to think about how do you make that 100 year bet. all this does is move the football facility up to the level of every facility we have across universities, starting with the sciences and performing arts. >> is this half that you are a really nice person to northwestern? >> every college team needs a pat ryan family. >> my dad and mom went to northwestern. my dad will say everything great that happened in his life came to northwestern. he built ryan specialty two successful companies and giving back and influence it can have

can be -- >> will this take away from the bears? >> not at all. >> he has a stake there too. full might do something similar and giving money to oregon to try to help their athletics. did they come to you with the ask? that is a big ask. or did you give them your background and go to them and say we think you need a new stadium and i want to help you. how did that happen? >> they were thinking about renovating it. we looked around at the world and saw where it was going and it is changing. the short answer is, when you get out of there, the answer lies with the entertainment venues being done in the nfl. when we learned we realize that would be the right investment to do and we said we are willing to do it. people in the nfl have been incredibly generous. we had to contextualize it to a

college that has to be built around students, it has to be built around a community. the infusion of that is something that we came in partnership with them. we said we will make the investment and over 100 years this will be the best investment we could make in the athletic programs just like we had done with biomedical research. >> what happens to the crappy old stadium that is structurally no good? it doesn't stay standing? >> it is a torn to the ground. the one in dc is an eyesore. >> what will they put there? >> that's where the stadium will go create there will be a big hole in the ground and structural starts. >> i love watching it when they blow them up. >> pat, thank you for coming in. it is exciting to see what you are doing and we cannot wait to check it out in person. when we come back, we are

going to talk earnings, bitcoin and more with tom lee. that conversation is next. >> the fight over the feds future, economists and new york bill dudley will be our guest.

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we have some news just out this morning. roadblocks announcing a series of safety updates is comes after research from disclosing a short

position last month. it alleged that the company was claiming to find gains such as escape to epstein island. roblox has rejected all the implications of that report. the updates that roblox is rolling out include the ability for parents to adjust controls and review their child's activity remotely , also users under the age of 13 will no longer be able to message with others directly outside of games or experiences. tomorrow on squawk box we will speak with the company ceo in the 8:00 a.m. our. it is great to see them doing this and it will be great to talk through what this is all about. the price of bitcoin surging 30% in november. right now i think 90, 91 or so. joining us now is tom lee, head of research at fundstrat . we can get to bitcoin in the

second. i want to talk about the overall markets. what you think, leading into thanksgiving that the slow bleed last week in the market, do you expect that to not to be lasting and multiple factors make you feel good about the next couple of weeks? one of them, plays into what we have talked about all morning as the treasury executory announcement. you are following poly market to see, was is 70? and then muscat tweeted about lutnick ? what are your thoughts? >> they have both fall into sub 40%. part of it is kevin warsh has moved up and mark growing has moved up. >> you think we will hear this week? or that is not the most important thing?

>> i think as we remove uncertainty, it may not be announced in the next week or so, i think that is what i call a clearing event it takes away uncertainty and the trump trade is still intact. >> the fed may not cut as quickly as possible but we are still in a good place? >> that's right. last week markets were taken by surprise when the chair powell said he might slow things down for december. if you look at december 2025 a year from now, the a number of applied klutz is the same. >> another clear event, you expected to be a bullish clearing event? >> most likely, markets get has a different. once we get that behind this demand will be strong. >> then we did get a little bit bullish so we pulled back to support level where you feel

more comfortable. >> i think most of the major indices have pulled back to what would be viewed as support. the nasdaq is on a support line, smb s&p did a retrace and small caps are held above the bullish price. >> i was wondering by the things that we are getting when the journal says a melt up could be in the cards, in the trump trade it has been going for a while, do you think it is just getting started? there is a lot, probably, for the markets to like. he likes easy money, he likes low regulation and lower taxes. there is more than eight two week rally, in your view? >> that's right. i think markets are course correcting now with the department of government efficiency there could be cuts to healthcare and industrial, things that investors can focus on more d regularization more

like small caps and financials. >> what about healthcare? you mentioned that in particular, it is not just that is looking for more ways of efficiency, it also has a change of foot with rfk junior. how does the market weed that out? >> i think it will be a tough period for visibility for healthcare. even recent comments about how much healthcare spending dominates advertising when you're not on the political cycle and you are right there are concerns about safety of certain vaccines and rfk being in charge of hhs. there are clouds, but there will be opportunities in poly and bio text but it will be challenging. >> part of the rationale for tweeting about lutnick had to do with bitcoin. it might have been only that, lutnick has reportedly , at

least tens of millions of dollars worth of bitcoin and maybe more than that. >> yes. it does seem like bitcoin is becoming more and more a hallmark of what the next administration is going to have and it does solve some of the deficit concerns. if bitcoin becomes a reserve asset and it may solve some of what i consider inherent problems of the current financial system. bitcoin remains a very secure blockchain. there is still a lot of potential for bitcoin. >> where were we last time? a recent time i asked we were still triple digits by the end of the year i think we were around 70 or under 70 and we are much closer now. i don't want to ask if you are raising your price on bitcoin but it looks like triple digits is a possibility and it is november. >> i think comfortably over 100,000 will make sense before the end of the year and bitcoin

is trading closely to where should. the next 12 months look good for bitcoin. >> do you ever with the s&p worry about valuation? if you worry about valuation you will always be worried, i guess. >> that's right. i think of someone sent a number saying 20 p is the cap and they faint at the market every time so many years of games, i think median pe around 18 times is not too demanding for the s&p and at the 10 year .5 is still. i think the s&p is an evaluation unrealistic story yet and of course small caps are much cheaper with the median pe 12 times now. if i was concerned by valuation i would look at smaller caps or mid-caps. >> in the next six months to a year, what type of games do you think a reasonable with the s&p with the trump trade intact?

>> between now and year-end five-tempers and still make sense. >> between now and year-end >> yes. somewhere around 6300. >> next year? >> i think we build upon the gains spirit i think inflation will soften and there is room for cuts. high 6000 is possible. >> wow. for a monday i am feeling a lot happier. i don't like mondays much. you denies anything negative. is anything we need to worry about? >> there is of course -- >> cholesterol. >> cholesterol and food coloring. >> mcdonald's is safe again? >> yes. >> if rfk is to taking a bottle of high test coke -- >> what about froot loops? >> i love froot loops. do you like froot loops? >> you notice how the ones in

canada are different than the ones in here. do you think he will not touch froot loops? >> it is really coloring that is different. one is natural, not all preservatives are bad. to me have some meat or milk try some -- >> no one has an idea of heavy pesticides that's not allowed in places like europe and asia. >> great to see you. when we return, a closer look at healthcare under trump's administration, mark bertolini joins us.

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that's the power of curiosity. better questions can lead to better solutions. t. rowe price. invest with confidence. welcome back. our next the guest is a longtime leader in the healthcare sector and has unique insights on potential areas of healthcare reform and president-elect trump second term. joining us now is oscar health ceo mark bertolini. he is the chairman and ceo of aetna and served as a director of cvs health corporation. thank you for being here. >> nice to see you.

gentlemen, good to see you both. >> we have been trying to figure out what the new administration is going to mean for healthcare. one thing seems certain that there will be changes. a lot of what is focused on o far is what the potential would be for the pharmaceutical companies. between the choices to lead health and human services, between what you might expect to see from the department of government efficiency, where are you thinking changes will come in the insurance market? >> i think in the insurance market what we have seen the last four or five years is stability in the individual market. today individual market is 22.2 million people and it has an ongoing crush trend of 3.5%. that makes the individual market the largest and most stable market in america. i think that is where the future lies for healthcare, getting more people

in the individual market that meets the needs of what republicans have talked about for a long time which is how do we get competitive products and affordable prices in ways that people like the products. i think we got a good future. >> the speaker of the house and others have mentioned they are looking at ways to change or rollback parts of obama care which is the aca. how do you think those changes will take place? you point out there are more than 22 million americans living there. the reason it did not get changed under the last trump administration is that people liked their healthcare insurance. there's a lot of problems with healthcare a huge expanding part of the federal budget and there are serious problems with the entire system, people trying to figure out how to make it better. >> when you look at small group middle-market, what you have are trends in the double-digit over rate increases. we have been keeping mid and low single digits in the aca.

i think finding ways to change regulation to actually get more people into the individual market, things like individual consumer health reimbursement account built by the prior trump administration has a way of moving all this people to the individual market where they can buy what they need instead of being chronically over insured. >> let's just talk about that for a second. there are huge proponents and there is something to be said getting workers covered when they don't have coverage. let's talk about what it is, it is a way that it employer can give you x amount for this and you buy health insurance for what you need. if something happens and you are catastrophically injured and you have big bills that come through and you get a cancer diagnosis is something else comes through, you as an employee think you are covered but it turns out it will not cover the cost overruns.

that seems like the opposite of what insurance should be if you do not have a catastrophic component it means you have stuff for the little stuff but nothing else that comes along. >> you do have coverage for the catastrophic component when you buy individual market. >> the employer can lay out and say i am only going to spend this much. >> they can say they will only spend this much and then shop and buy a policy which are cheaper in the individual market today including subsidies. >> if you know something bad is happening that's one thing, but if you do not realize you are in for a cancer diagnosis, you could be out of luck. >> i think plans have zero premium plans. a lot of people want a safety mat whenever they have a catastrophic event. we see a lot of people purchasing that way. they like the product, it has deductibles, with a account you few by down you have extra money

that you can buy and pay for those deductibles and extra cost it is still, all those policies have catastrophic coverage. and they have out-of-pocket limits. >> everything i read on the downside is that you might be uninsured if you have because that come through. is that not true or is it you have discretion to decide how to spend if you want to make sure you are not paying as much . >> if you buy and use what we call short-term benefit plans or stripped-down benefit plans you are making a mistake. part of what we are launching is we have plan selection and people have informed on how they pick the products, these plans with very high deductibles and very limited benefits are not good plans. that is not what we sell in the

individual market. >> where do you think things have gone wrong in the healthcare industry? if you talk to the pharmaceutical players they will say it is the pharmacy benefits managers who are having big problems, they might point to help insurers hospitals will say insurance companies are raking them over the coals. the one name that keeps coming up is the pharmacy benefit managers. do they play a good role? or have they gotten to the point that they are so consolidated and under the care of a cvs insurance company that it is not the same thing as it used to be? >> pharmacy benefit management model has run its course. i think for a lot of people what is happening is they are paying more for their drugs through a pbm than they would if they bought it directly. that is a problem. i think what happens is the profit pulls inside pbm's are confused and they get moved around. and what some have done is they . other companies like right

way are looking at desegregating those profit pools so that the money goes back to the consumer. i would agree that the pbm's have played and run the course and they do not serve the purpose. they initially did which was to get to the drug companies and some of the cost down repurchasing >> as they have been consolidated into larger organizations. mark, you are someone who understands so much about the healthcare system and we do not have enough time today and i would really love to have you back when you are in town and come into the studio and sit down and talk to these things. it feels like there are some big changes coming. would you agree? >> it has to be it i think, again, we could get 110 million people in the individual market with 3.5% trend and we save a lot of money and e can talk about it for the next time but

i will bring more points. it can work if we get people on the right benefits. >> mark bertolini, again, you are someone with a long career in the healthcare industry and you understand things that most people don't. we would love to have you sit down with us and continue to cover the story as it evolves in the coming weeks and months. >> we will find the time. thanks. >> coming up, netflix taking the fight for viewers to a new level. the tyson/paul showed impact a major punch to competitors that e waid have some snares along thy. we will discuss that when we come back.

welcome back to squawk box. i have some of the biggest premarket movers this monday morning. supermicro, one of the s&p biggest gainers up nearly 13,

now 10%, on reports that it will submit a plan to get in compliance with the nasdaq today but if it does not do so it is at risk of being delisted from the exchange. shares hit a record high of over $122 earlier this past year on march 8th, they have fallen 85% since then but keep an eye on supermicro shares. nvidia is down roughly 2, 3% as reports show their nexgen chips are part of services that overheat. there a i focus chips are due to design flaws. the semi conductor giant and most valuable company in the s&p reports earnings after the close on wednesday. rounding out things are shares with cvs up about 1.5% after a, over at wells fargo raising their target price from 66 bucks from 63 it they predict the negative consequences from the insurance on at the have reached the highest point. cvs announced four new board

members earlier today. for more on that and other big calls go over to cnbc.com/pro to get more detailed analysis. >> former "new york times" presidenwiiadueyt llm dl joins us for a big conversation j.j. watt! hey! i made my family disappear. you're not t.j. you sit on a throne of lies. jj! sorry, guys. i was just in there having the best night of my life. oh. what's this? it's a beaut', jage. it's a beaut'. all right. here we are. all right. sorry.

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>> fed chair pow through cool water on chances for rate cuts last week. the 10 year yield continues too higher. join us now is bill dudley, former new york fed president also, mr. president, mr. former president, we also had austin goldsby on leslie talking about inflation being around 2.8%. doesn't make sense to you with the 10 year ticking higher, does it make sense to continue cutting or does that mean we are moving the goal post on inflation? >> i think inflation is going to come down, but it will take a little while to be fully realized. we talk about the fact that

shelter costs are going up rapidly but that is a like response to the fact that it takes time for red prices to reprice lower. it is also concerned that the labor market is not that strong. his view is that the policy is too restrictive, the labor market is still vulnerable to weakness and heading in the direction of neutral is the right course. i think the data is causing problems because the economy has been stronger than expected and inflation has been stickier than expected. the big debate is does the fed cut in december? the market says yes but not definitively. their view is that maybe the fed will take a pause to wait for more information. >> that dual mandate is a total pain, is it not? parts of each side seemed mutually exclusive, it is not an easy job for anyone to try to navigate. >> you are trying to get to the

place where you can without having an inflation problem so you are balancing two objectives. >> it seems difficult. the move hiring yields on the 10 year. what do you attribute that to since the jumbo cut of 50 basis points and the election? a little bit of both or are there still some residual inflation fear and also maybe some trepidation and on what a chump president the means. >> i think the big driver is the fact that the economy is stronger than expected and people think the fed is not going to cut rates as far as they thought before. if you go back a few months ago the market was price for the federal funds rate to fall to 2.9%, currently the federal funds rate looking at 2026 is 3.8%. higher level short relates directly to higher-level 10 year.

the fact that some of the trump proposals on tariffs and deportation could also be not only disruptive to the economy but push-up inflation is also weighing on the market. it is probably real race that have gone up but it is also partly expectations. the market is rethinking about the trump policy is going to be conducive to low inflation. i think the tariffs are the biggest risk. if you waive tariffs by 10% across-the-board, that will drive import prices and the increase will be longer than last time. the tariff increases during the first trump term were very modest they went from one and half imports to 3% imports now we are talking 3% imports to 15% of imports, much bigger magnitude of increase. >> i just wondered on any comments on the relationship between president-elect and the fed chair x do you think it

will be smooth sailing? can i throw your hat into the treasury secretary ring? do you want me to do that or no interest? >> i think they have no interest. >> that is cold. >> i think powell is trying to keep his head down. he does not want to leave his post early and he wants to serve out his term as chair and trump does not have the legal authority. he is trying to put that to rest. once we get to early 2026 we will see a new fixture and the speculation will start on who that is and how friendly they would be to the trump administration. there is a reason why he wants the fed to be independent, it has been shown clearly that a more independent central bank leads to better outcome unemployment. if you do not have an independent central bank, then the policy gets based on the election cycle and it does not

lead to good outcomes. >> do you have a preference? who would you like to see is treasury secretary? who would you like to see is next fed chair? >> i just want people who are highly competent. >> that might be a problem. >> bill dudley, we appreciate your time. thank you. >> coming up, china select committee ranking member will be joining us to talk about u.s. china relations and so much more after this. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

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welcome back to squawk box. president biden and china's president xi met this weekend. they are working to expand cooperation to manage differences. joining me now is congressman raja krishnamoorthi he is the lead democrat on the

committee. given you are a democrat and even that this demonstration is a republican led group, how do you think the dynamic fundamentally changes at this point? >> i think there will be a lot of continuity between the biden and trump administration. >> you do? >> i'm sorry? >> you think there will be continuity? that is fascinating. >> i think so. i think people like marco rubio and micro walls who are colleagues of mine with whom i work closely know that we have to work at a bipartisan manner. with regard to the tariff situation. if president trump decides to unleash 22% across-the-board tariff increases on all products from every country and 60% tariffs on chinese goods, regardless whether they pose economic or security concerns i think it would be a big problem and it would disrupt ties with

friends, partners and allies with whom we are working together to counter chinese aggression. >> the prevailing view had been that president xi preferred president trump and why do you think that would be? >> i think part of the reason, or part of the notion, obviously i do not know xi jinping personally , however, there is speculation to the extent that president trump creates instability, to the extent that there is some chaos in his policymaking that benefits xi jinping. sometimes the rhetoric is tougher than the actual actions that follow. all that being said , now we have to make sure that we succeed in our policy toward china because they are pursuing an aggressive attack economically, militarily, and technologically. >> i think the view, by the way on the other side, is that president xi thought president

trump was a dealmaker and that there was a deal to be made. the question gets to tariffs and if you think there is a deal to be made and what you think that looks like. >> potentially. however, i think what is really important is to talk about strategic tariffs with regards to those areas where there is economic aggression such as a dumping. dumping of paper, steel or aluminum, solar panels or electric vehicles, there we should come to an understanding and deal, so to speak. also, the purchase of increase agricultural goods from places like illinois, for instance. i think those are important steps that the trump administration should work on. >> what do you think is a fair tax? if there is a across-the-board tax, is there a number that makes sense to you? >> across-the-board? regardless of which country? no, it does not make sense.

it is super inflationary and it hurts the exporters, like our farmers and it disrupts relationships. the last time we adopted across- the-board tariffs was during the hoover administration in 1930 with the smoot-hawley tariffs and that did not end well. i do not think we should repeat history in that regard. >> when you think about the national security implications of our relationship with china and technology and the like, how worried are you about the relationship that they have now with iran and how do you think, potentially with russia, and to the extent that you think this new administration is going to have any everage over them or not. >> i am very concerned. you are right to talk about the relationship with iran and russia, to the extent that, for instance, we are xporting high- end semi conductors, or even equipment to companies that are

making semi conductors in china, that ends up in the war machine that is pursuing this criminalization of ukraine through russia. same goes for iran. that is why, for instance, on a bipartisan basis, john molinar, the chair and myself wrote a letter this week to various companies in the united states who are selling semiconductor manufacturing equipment to what we call front companies for huawei and others who really should not be using our equipment to make technology such as semiconductors because it is used to modernize the people's liberation army or perpetrate human rights abuses against the leaders. >> congressman, we have to leave it there. we appreciate your time. thank you. >> thank you so much harriet when we come back, we have more what to watch in the

markets as we get ready for some key earnings reports. right now as we go to break, let's take a look at the premarket winners and losers in the s&p 500. supermicro computer up by more than 10%, it is leading the way. squawk box will be right back. ♪ snow day by caitlyn smith ♪ celebrate the journeys that bring us closer together. the mercedes-benz holiday love celebration is back with offers on vehicles like the 2025 glc suv. now through january 2nd. 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

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>> you are watching squawk box right here on cnbc. among today's top stories, spirit airlines filing for bankruptcy protection after years of losses. on a broad range of issues. you can see tesla shares up right now by 8%. netflix says 60 million households joined the mike tyson/jake paul live boxing match over the weekend despite some technical glitches early

on. we'll talk about this flight with likeshed's rich greenfield. hindenberg research we discussed disclosing a short position in roblox. they alleged the company was inflating user metrics and inflating to find games on the site. diddy party and epstein with lots of questions for parents. roblox rejected all implications of the report. roblox is rolling out this morning the ability for parents to adjust control and view their child's activities remotely. users under the age of 13 will no longer be able to message with others directly outside of games or experiences. tomorrow we'll have the opportunity to talk to the company ceo david baszucki in the 8:00 hour about it all. let's get back to the markets. the futures this morning, as you can see, have improved. the dow is down triple digits and then some. the nasdaq has maintained its

positive bias this morning. there's the ten-year up 4.47 now. mike santoli joins us from the new york stock exchange. good morning, mike. >> good morning, joe. pretty quiet on the index level. last week the s&p 500 pulled back about 2%. last week it got stretched after that reflex rally following the election, even preceding the election a little bit. it looks pretty normal here. what we've done is come back to the october highs, about october 18th you had the pre-election high, curled back underneath it. the 50-day moving average is below it. another percent down would probably be in the routine pullback zone. within the index a lot of back and forth movement based on policy expectations. of course, the cyclical parts of the market doing better. since that point in october when we were at this level in the s&p, small caps are up a little bit, banks are up 10%. clearly winners versus losers. transports versus health care. now, look, they were in a pretty similar position here. not that long ago. right there.

right around the start of october. you see you got this real jolt higher in the transports. again, economically sensitive stocks, energy prices have been going down. then, of course, health care on a lot of those policy concerns. it's been a struggling group. things like biotech within it as we know. a noisy situation underneath. take a look at small caps. i mentioned they've had this move higher, a lot of folks feel like the playbook is fet cutting, tax cuts, whatever the policy implications are of the election would benefit small caps. they've been moving along with emerging markets for a long time now. you see they have had this big divergence. u.s. over the rest of the world the past couple of weeks. the russell 2000 has given back most of that pop. it's back to where it was around november 5th. we'll see how that develops as treasury yields continue to tick higher. >> thank you for that, mike. for more on the markets want to bring in gabrielle santos, chief market strategist for jpmorgan

asset management. good morning to you. >> good morning. >> we've been on quite a ride. the question is, does the ride continue upward in a pace or not? >> we have been in quite a ride for markets really over the past two years. very strong performance for u.s. equities. we think this is a good environment for risks that includes equities, that includes corporate credit. i think there are two important questions for us that investors are already paying attention to. number one is we seem to be out of the cyclical storm. all of the distortions from the pandemic. but now we're in the short term in a little bit of a policy fog environment. that can lead to some of a bit more choppy performance. it's really about all the three ss, the cale, the scope, sequencing of the policies of the new administration and how do we counteract headwinds and tail tailwinds. the second big question is more beneath the surface. it will give us more conviction that we'll continue to see

broadening out from the early winners from the first 18 months of this rally. but i think it's less about painting things with one big brush stroke and much more thinking about positives and negatives, which companies -- >> the multiple has expanded, though. we're at 23 times. >> exactly. >> the question is, what is the upper limit of that multiple, in your mind? >> i think there are two interesting questions here. in terms of the multiple, it's easy to just say, well, we're at 22 times the long run average is 16 times. here we have a big multiple contraction to come. the truth is the index has changed a lot over time. 37%. very growthy, high-quality companies. the equilibrium multiple is higher. that's a good thing. it helps provide a floor. the second thing is earnings and you can grow into a multiple. and i think recently in october we've seen some downward revision to earnings estimates, but so far nothing abnormal. if anything, there could be some

upward revisions to next 12-month earnings based on different policies from the new administration, whether it's a little bit more consolidation, a different industry or whether it's corporate tax cuts that impact certain industries. of course, the continuation of the soft landing we have at the moment. >> political question. do you have a view about what kind of treasury secretary the united states needs and wants and how the market will react? i was thinking about this earlier because in many ways, a howard lutnick kind of figure that -- like the tech world, like an elon musk would like, would be an quity guy but donald trump is a debt guy. you have to care about that, i would argutellmore. that's where a kevin rorsch or

marc rowan comes into play. >> we've been talking about u.s. equities and we also had a reaction to some of the fiscal and potentially tariffs and inflationary impacts on bond markets, which are up 70 basis points since we started pricing in a republican sweep, and the dollar, which is up 5% to 9% since mid-september. so, i think for equities now is when there's a little bit of catch-up happening to the bond and the currency markets. start to think through, maybe there are some pro real economic growth policies but maybe also some uncertainty coming from other angles. all of this brings to last week when the market did start to react to a little bit of this policy fog. and here i think the markets would, a, just like an answer to start pricing in. and number two, what kind of treasury secretary and economic, in general, appointments and what does that signal between

the balance of the tailwinds and headwinds? here specifically thinking about tariffs which is something the equity market hasn't paid attention to. i think the equity markets would prefer, steady as you go, a little more predictability -- >> do you worry about the inflows? joe was referencing this front page article on the "wall street journal." always the curse of these sort of super positive articles about the market. meaning, you know, folks who haven't been on the train, get on the train. they get on the train now. and whether this is late to be on the train. >> this is what we've been talking about even before the election, right? we were talking about the train had been the magnificent seven and tech and that was an area that was becoming extremely crowded. that was an area we said could be ripe for a bit of a correction, normal. that's why we were banging the table on really focusing on other sectors and other companies. i think when it comes to equities overall, there's a risk

at times of too much bullishness for certain investors that had quite a size overweight equities to bonds. it all depends on what the starting point is. we still think an overweight to equities is justified kind of from a baseline level, but i think it's up to each investor how much of an overweight do they have and in what exactly in the market here. >> thank you. >> thank you. >> great to see you this morning. when we come back, investor and trump 2024 donor meed malik will talk about the trump white house. stay tuned. you're watching "squawk box" and this is cnbc.

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on the position of treasury secretary weekend reports detailed some drama among top contenders. our next guest has had a front row seat behind what's happening behind the scenes. joining us, omeed malik, founder of 1789 capital. it's good to have you on, omeed. are you actually -- where are you right now? is this zoom? >> this is zoom in my office. i think you're implying i'm about five minutes away from mar-a-lago. >> five minutes away from mar-a-lago. former democrat. i think you have a famous employee named djt jr., is that true? >> that is true. the junior being the operative word there, not the president, his son, yeah. that's a formality, we have been business partners investing in the eig economy, entrepreneur,

innovation and growth. that's our acronym that stands totally counter to esg. >> even when a publication tries to describe 1789 or you, they say anti-woke. are you comfortable with that? >> you're picking up on something pretty important. when we were the loyal opposition, maybe it's okay to have an anti in front of your name but i think we were validated in our thesis. we prefer a month positive vision to your point, which is focusing on how to spur innovation, but what we clearly do not support are esg or dei policies we think have destroyed shareholder value, which is factual now that you can map that performance over the last 15 years. we also want to make sure we're providing choice to customers. it's all predicated in data, by the way. if you look at 2020 voting patterns, the folks that voted for biden in 2020 represented

70% of american gdp. trump voters were 30% of american gdp. at first blush you might say, that's not all that great. 30% of american gdp is $70 trillion. i think it's stipulated for a long time, corporate america was not only ignoring them bull alienating them. we want to play into those areas. you can have an emerging market south of the mason/dixon line. >> entrepreneurship, equity, social, government. it seems like any decent startup or company by definition has components of all those things. i guess that's just how you emphasize things where we went awry. she starts a company that doesn't think about entrepreneurship, innovation and goat and governance and everything else, omeed. >> it's so much more complicated. you guys have spent a few years talking about it. it starts with the asset

management arena. you have to look at the capital flows informing behavior. you've seen the conduct of public companies. i don't think that exxon wants to get out of fossil fuel but they're are pressured to do so. you had until recently some of the biggest silicon valley firms refusing to invest in any areas of defense tech. that's an area that we have stepped into because their employees, for whatever reason, they didn't want to support the u.s. government. at the same time they were more than comfortable going and investing in china, which is number one enemy, or adversary, if you will, as well as starting chinese-only funds where they would receive money from chinese investors. i try to equate that to someone starting a fund during the cold war and going over to the soviet union and raising capital, but not at the same time as investing in america. that kind of absurdity presented us with the opportunity to fill in over a couple of years ago.

>> reportedly you had something to do with tulsi gabbard and maybe rfk jr. beginning to warm up to the president-elect early on and eventually endorsing and even jd vance you had relationships with these individuals as well and you would say you sort of helped in that regard? >> yeah. with respect to jd vance, he comes from the same area so we had a previous relationship. i was one of his first donors when he was running in the primary in ohio. >> where are you from in ohio? >> no, no, i'm from new jersey. when he was running for senate in ohio, that's when we were supporting him. >> because i'm from cincinnati and middletown, it's almost the same thing. yeah, go ahead. >> my college roommate was from outside of chillicothe, if that

counts. >> that counts. >> that's jd vance. as it relates to tulsi gabbard, i maintained a strong relationship, and same with robert kennedy. i think the more important point, i can go into details of those endorsements, but the reality is with respect to rfk and tulsi, they represented a much broader point what's happened in the country, which both are former democrat who went through a met moersz or awaking. i had that awakening more around 2019 or 2020. whether you're talking about kennedy or tulsi or even musk, all three of whom voted for biden in 2020, you kind of knew that if those were shifting, there were going to be millions of people behind them because they represented that. that's why i was so bullish on the election heading into it.

in contrast what did the democrats bring over? liz cheney. i'm not sure she had a huge constituency. >> what do you think about the race for treasury secretary role and what's spilling out into the public about the sort of internal debate about some of these names, whether it be the ceo of cantor fitzgerald or marc rowan flying in from asia to meet with the president-elect or kevin warsh or, perhaps, other names you want to throw out there? >> high level with the first two, lutnick, i was a client of his for a d-spac. i know him well in business. scott was a client of mine when we were at bank of america. i have relationships in the business. both of these folks were extremely accomplished in their own way. i would look at what the journal put out last night and they were spot on. you don't want to do what musk is saying, go in there and blow

things up. that's probably one department i don't feel that way as a market participant. you need someone that will create confidence with their abilities for macro economic perspective and their credibility. that's a quality i would look for. at the same time, this is really important and needs to inform almost every pick the president makes is how do you take someone that is accomplished in the field but at the same time is going to incorporate some of the more innovative, i'd say, elements of this america first trump policy? specifically with respect to treasury, you have to have somebody who has all the things i described but at the same time is going to get on board with dodge and cutting as well as the tariffs. that is why sometimes it takes us longer to find people because i think we're carving out a third way. >> so, when you -- if you take out lutnick from that group then, then you're talking about a bessent. i don't know -- you would never

better than i, if bessent or warsh is on board with tariffs, similarly with marc rowan. >> that's what they have to prove to the president. my knowledge of scott and howard is they are both completely on board with that. i don't have a personal relationship with the other two. i'm not questioning their ability or acumen but through the interview process that's what they have to demonstrate to president trump. >> you're investing in media. >> yes. >> i mean, tucker carlson's media company. do you think -- what is the current state, in your view, after this election of legacy media and do you think it's right for disruption? i mean, all media is going through these gut-wrenching changes right now. i don't know, is mainstream media come to grips with who they are and what the country thinks at this point of

mainstream media after this election? >> look, there's clearly going to be a change about -- on the economic side. yeah, that's what i focus on. the new fcc chairman, you have something that upset a lot of us. my galvanizing moment is what i saw suppression of speech at the hands of either big tech monopoly or mainstream media. that's what tucker carlson network we invested in or substack we invested in was fueled by, so there was a demand for these other platforms. then you see it manifest in the last election, to your point, joe, and it had a big impact with the joe rogan and the entire strategy of rfk before he dropped out and then trump was to go to these platforms. you see they actually have a lot more people watching them, in many cases, than the mainstream media. i think there's going to be a

reckoning. i heard that joe scarborough and mika went to see the president. that was after seven years. >> they said that. >> they said that this morning. that is clearly a microcosm of what you're going to see as a change in behavior. i don't think regardless of what side of the aisle you're on, the last eight years was productive to have this acrimonious relationship between those of us affiliated with this administration and the media writ large. i think you'll get something more straight. hopefully in response to the challenges they face, you're going to have something come a little more in the middle. and i have seen that to a certain extent, you guys do it and some other platforms have dissenting voices on and i think that's extremely necessary. >> one other names, talk about dissension, dissension among republicans, matt gaetz. where do you land on that? at a time when clearly the president and president-elect has a hunl number of priorities

to get through, whether that scrambles and creates an additional challenge or headwind that maybe he doesn't need? that's one perspective. other people, clearly the president, thinks this is the right man to shake things up. >> yeah. i'll always tell you guys, when i have a personal relationship with someone, which is usually most of the time, but i don't know him personally. obviously, i know him by reputation. speaking candidly, i think there are areas i think he's done great work on. other parts he's controversial. the point of the exercise, obviously, is for him to go through the confirmation process and see what comes out. so, i would say, though, there is a concern. you are aware of this on our side. the last four years you saw the weaponization of a lot of the legal system. and i think this is clearly a pick to counteract that in the president's mind. so, i'd probably leave it at that. >> very good. all right.

omeed, where are we? i don't even know if we're halfway, going quickly and every day gives us plenty to talk about. and we'd probably like to talk to you again at some point if you're open to it. appreciate your time this morning. >> yeah, any time. enjoy what you do. it was a pleasure to speak with all of you. i hope you have a great day. >> thanks for coming on. when we come back, it has been a year since sam altman was forced out and then rehired to openai. after break we'll take stock of what has been a wild year for the company and the entire world of a.i. technology. later, the ceo of perplexity i.a. will join us. stay tuned. you're watching "squawk box" and this is cnbc.

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i've got another one. marc rowan. box." we've been watching the utures and the weakness in the dow has continued. we were down about 100 points below fair value at the start of the show. now we're down by 130.

s&p futures have turned negative. nasdaq still indicated up, barely. earlier it was up by 100 points. now it's up by nine. >> mean tile time, it has been a year since sam altman made that dramatic comeback at openai after the board had pushed him out. joining us for more on what has changed at openai in the past 12 months, challenges ahead, kate rooney is on the west coast in san francisco this morning. good morning. >> good morning, andrew. great to see you. it has been a dramatic year for openai since that board coup. there have been some major successes like raising billions of dollars, for example. that tension over that weekend revealed that it did reveal, it does continue o weigh on openai. wristle blowers have rung alarm bells about safety, checking on how some of that powerful new technology is deployed. sam altman is in the process of transforming the company into a for-profit entity, which is making investors happy and

normalizing governance but it could also exacerbate safety concerns. the biggest proponents of safety have left the company in the past year, what is now $157 billion startup started as a nonprofit research lab. one of altman's top research advisers says it's come from deep tech roots, clashing with commercial opportunities. some of its academic focused founders worried openai was moving too fast, felt safety was on the back burner at certain points. that's one reason the board justified firing altman. altman and some of his top advisers publicly said they're building appropriate guardrails of an independent oversight when it comes to safety. they compare this technology to nuclear energy. it can be used for good or mass destruction. amid all of this, altman is transitioning that company to for-profit, more traditional governance structure, and it's looking to become a public benefit corporation which would give it a dual mandate.

instead of just serving the benefit of humanity, its original mission, it would have an obligation to increase shareholder value, which is what they are expecting. back over to you. >> kate rooney, it's been fascinating to watch. here's the question i was going to ask you, in terms it of where you think the leaderboard is right now, meaning openai, anthropic, where google is, we're waiting to hear where amazon is going to go with all of this. what's your sort of -- in terms of where this is -- also the sense maybe they're all going to the same place. i don't know if you saw marc andreessen on a podcast saying there might be some kind of -- not -- headwind and then sam altman came out publicly and said there is no wall in terms of how quickly and fast this can all go, i think. >> totally. it's subjective. depending on who you ask you'll get a different answer.

the consensus is openai is ahead at this point. they are the top leading language model with chatgpt, have the first mover advantage. it's the post it effect, if you say you're going to use openai, you'll go to chatgpt. the bear case is they don't have much of a moat. they have to spend billions to maintain that moat. you have anthropic, google, amazon nipping at their heels. openai, i would say, is ahead but they have to prove that and continue to spend to get there. to maintain that position while still balancing, like i said, safety and some of the concerns out there. right now they're top dog, at least based on what silicon valley would say. >> thank you. appreciate it. >> hanks, guys. when we come back, media industry takeaways from the big mike tyson/jake paul fight. netflix drawing tens of millions of vowers and a telecast with

glitches. warner brothers settling its lawsuit against nba. rich green berg will join us. don't miss an interview at 7:00 a.m. eastern time with none other than martha stewart. you're watching "squawk box" and thiss bc icn.

netflix announcing beyonce will perform at halftime during the second of two of its christmas day games this year. >> wow. >> houston texans are taking on the baltimore ravens. netflix says the show will include the first life performance of songs from beyonce's country album "country carter" and will also include special guests. netflix reporting 60 million households watched this past weekend's main event boxing match between mike tyson and jake paul but it was marred with streaming glitches with some viewers. netflix acknowledging that. joining us to talk about that is rich greenfield from lightshed partners.

warner brothers settling the lawsuit against the nba and keeping some basketball content, but let's start with the netflix match. this was a really big deal. 60 million, a ton of viewers. obviously we'll be getting more stuff like this down the road. how significant was the issues they have with streaming to all households? >> the content was a snore fest. i went to my first ufc fight at msg and it was electric relative to watching the netflix match. look, what did the netflix match show you, becky? it showed you the power of scale. when you reach 280 million households around the world, bringing in 60, it's like 20% of netflix households worldwide tuned in. it's a huge number for television yet still a small number for netflix given how big the platform is. i think it shows you their live strategy is working. they can make events.

when you have the reach and engagement, you can drive excitement and build enthusiasm for a live event unlike any other platform. i think it just shows you, netflix is going to do more and more live events like this. >> i had two thoughts that came out of this. if you are the nfl or one of the big leagues, you're looking and saying, they have to make sure this is not going to have any technical issues before we go along with that. and the second is what happens with the carriage laws. if you look at the fcc and try to get to the point will a new incoming fcc look a little differently than democratic fccs have -- democrat fccs have in terms of who we're going to favor, if this is going to be a forced issue where small tech companies that are no longer still small still get a free ride whether it be the cable companies or any of the companies that have built these

networks now creating such a drain on the industry. >> look, tech is hard. no doubt tech is hard. if you think about what the comcast and nbc team were able to accomplish with the olympics. this is hard. i watched the fight on friday night, becky. i didn't have any problems. i know lots of people that didn't have problems. there were definitely issues. i think the overwhelming majority of people did not have problems. this is crawl, walk, run. i think they are working on building up scale for live. this was important as a building block to getting to the nfl. and i think to the extent the nfl goes better t may not be perfect, but goes even better than this, it's two games. they're building up expertise for live. in terms of from an industry standpoint, the fcc, i think the fcc will want more competition going forward so more bidders and more platforms making

content. netflix making this available reaches more homes than even have pay tv. there are more netflix households in the u.s. than people paying for cable television. i think from making access to content, putting things on whether netflix or amazon prime, i think be is good for american consumers, not bad. >> in terms of the tech before we go to warner f you're roger goodell, you're having a heart attack thinking, what's it going to look like on christmas day. since we haven't heard what the actual technical problems were, do you think it was production issue, server issue -- >> my suspicion is complete simultaneous scale. just the amount of people. those numbers are just -- i mean, there's been nothing on netflix that's even in the ballpark for live of what just happened. >> i'm not even sure the nfl

will be as big as what this was, knowing what an nfl game does in terms of traditional reach. yes, it's christmas day. 60 million households tuning in for the fight on average, that's a pretty crazy number. >> let's talk about warner brothers and this settlement we think has happened or is happening with the nba. is this a great deal for warner bros. to still have this there? from the stock implications, that would be the first place we look. >> i never thought david zavlov should be suing the nba. you know what, he actually got more than he would have gotten if he hadn't sued. i think he walks away with a win here. there's no doubt he got incremental highlight rights he never would have gotten, overseas content, he can make documentaries like "hard knocks"

nba without paying incrementally. he definitely got things for fighting the matching rights, but the biggest piece of this, that "inside the nba" swap with bob iger and the team at espn -- >> it's a licensing deal where they were going to license it out to espn and abc over the next year. >> but they're not paying because they're swapping. what's going to happen, they get "inside the nba" on espn, great, keeps the show going, but dbw turner gets a bunch of sports rights from the big 12. not the best matches, not the best college or football rights, but incremental sports rights. all that matters for wbdd stock, look at what investors are worried about, it's can they get their deals done with comcast and other distributors for carriage of tnt after losing the nba. i think this is yet another signal they're going to have

enough content to keep their carriage and not get destroyed by distributors. so my guess is, wbdd investors are pretty happy today. >> all right. rich, thank you. it looks like it's up 2.8%. it's great talking to you. thanks for your time. in light of the nba news, we to want mention a special interview we have lined up for tomorrow. composure john tesh will be joining us. he was the ure on round ball rock. folks hope they hear it when the nba returns to nbc in the 2025-26 season. nbc hasn't yet reached a deal to feature the song. we talked about it last week. john tesh was listening. he's going to join us live tomorrow to talk more about this. >> he's the host of "entertainment tonight" to me. >> me, too. >> mary hart, mary hart. not mary hartman, but mary hart.

i couldn't believe he was a musician and composure. >> at the same time. >> we look forward to that tomorrow. the ceo of perplexity will join us on the state of competition in the a.i. search and assist market. not go anywhere for that important conversation.

welcome back to "squawk box." news from perplexity a.i. the company launching an a.i.-powered shopping assistant. joining us to talk about this and the broader competition in a.i., the ceo of perplexity a.i. we love having you on the broadcast. congratulations on the new launch. let's talk about that pieces of it and gets get into the broader question of where things are, openai releasing its own search product. how important is the shopping piece for you? >> yeah, thank you for having me again, andrew.

shopping is really essential bays it's one of these verticals are the stronger you can play that, all these a.i. products are moving beyond just giving you answers, right? a lot of people say which a.i. products are being used? they all look the same. some use the web, some don't. you need to actually enable actions. what do you do after an answer? purchase, a transaction. all these products need to get there. shopping is the first step for us to get there and we're happy to be the first to do that. at perplexity it becomes a one-stop solution to not just research a product and what to buy, but you can buy it right there natively on the app. with one click buy, revolutionary in e-commerce even 20, 30 years ago, we are bringing it to a.i. products and giving free shipping for all people. they can just take their phone and point it at some product they want to buy, say, where can

i buy this and get it right there. this is really powerful. people can just compare, ask questions they could never ask before, like help me build a library or help me host a disco party, what do i need to buy? you get all the products right there and compare -- and all the reviews are surfaced from so many different parts of the with eb and you fulfill your transaction right there. >> that's what i was going to ask. what products you surface, what products you don't surface. obviously, amazon has its own search business inside its own platform. can you get amazon products on it? i hate to use the word scraping, but when you look at reviews on other sites and pulling that, is everybody allowing all of this to happen? are some going to block you? how is it going to work? >> we're also introducing merchant program, and we're inviting merchants to work with us because we think customers, consumers love this, and that's always the long-term correct

direction. if we can collaboratively build this next generation shopping assistant for all customers where rchants can bring their products back and that way we can provide this experience to everybody. we are already working with shopify. we're enabling people to shop out on shopify with shoppay and bringing it into our search results. >> i mentioned amazon because jeff bezos is a very high-profile investor in your company. is amazon involved? do you think they will be? >> we are not ready to talk about who is currently in the program but we're happy to work with everybody, and that includes amazon, too. >> let's talk more broadly about the search business, if you will, and how a.i. relates to it. openai recently announced its own search product. how do you think about that product, your own product, and

what you're seeing from google with the a.i. features its added? >> all these products are similar in the minds of the average consumer. they're all giving me answers to questions. i think you need to go beyond that. you need to provide real-time information on vertical stat matter in everyone's lights, sports, we had the election hub, today we're doing shopping, transactions. so, a.i. products need to move to a direction where commerce and businesses and consumers transact with each other and everyday information is provided in a much more end-to-end work flow and costume uis. that's what we're working on. we feel like we're ahead of everybody else in that direction. and i think that's what we need to keep doing more of. more verticals, travel, finance, a lot of things need to be done here. >> do you feel like you have more leeway, perhaps, to do certain things than some of the

bigger companies don't? i ask because, you know, interestingly if you went to openai and asked political questions the night of the election, as you know so well, it would send you off to other places. it did not want to answer those questions. that was a choice that they made. you made a very different choice, which was to lean in fully into the election and create an entire hub around it. how do you think about those two choices and the permission, if you will, that you may have to do something like that that maybe openai doesn't feel like it does because of its size and scale. >> it's not necessarily about the size and scale. for example, google also provided the election results on doing the search results. it's a focus. you really want to be a search product. you really want to play in the search game. you cannot do 100 things. there's a code of bruce lee, i fear -- i don't fear the man who does 10,000 kicks once. i feel the man who does one kick

10,000 times. focus on one thing and nail it. a lot of things to do in a company, so that's exactly why our differentiation from openai comes from. openai is an agi company, they focus on building models. we are a search company working on building the next generation search for consumers. >> i have a question for you i was thinking about all night last night. google is in the middle of this major lawsuit with the department of justice. owns about 90% of the search business right now. there is a potential that a judge could ultimately decide to break up the company or do something with it. where do you stand on that case and the competition or lack of competition in that space? >> i think it's good for american consumers if there are more alternatives in search in general. we are very interested in not just trying to build the same product as google and trying to compete for market sharele and

links but provide new experiences to people. and we're doing our part -- regardless of the doj rules, we're pushing the boundaries on what search can be. search can be actions, search can be actions, and shopping can be redefined. that's how we're thinking about it. >> do you think about the search business differently now? it used to be in the blue link economy, you described it, that is one type of search, but now that we are living with a.i., when openai is doing, anthropic, amazon about its own search, do you say to yourself that the ecosystem is that much larger and, therefore, when people use the 90% market share google has, you say that's just a small slice of search or do you say that really is the business. this goes to market size, in a way. >> i would say it's a different market in a sense that the median search query on google is

two to three words. the median search like perplexity are 10 to 11 words. people are actually able to ask very detailed questions, much higher intent questions. that is not something they were able to do on google before. in some sense, that is a new market, that's a new consumer trend that's on the rise. on the other hand, the behavior of people to go and type in amazon, instagram, reddit, tiktok, youtube, these one-word navigational on youtube is saturated. everybody on the planet knows how to do that. we're not competing for those queries essentially. >> this is a fascinating conversation. i hope you come back and we can continue it. really appreciate it. and i don't have to admit it, i'm a perplexity user. happily so. thanks. >> thank you. coming up, top stos tcahead of the opening bell. "squawk box" returning right after this.

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.

just over half an hour to the opening bell on wall street. dom chu joins us for the market top movers. >> let's start things off with the top of the week, nvidia, reporting earnings after wednesday's close.

the options market is pricing in what could be a 10% move up or down in those shares after that report. that slightly more volatile than a 9% move over the last eight quarters after earnings. we're also keeping out of the information that nvidia's next blackwell chips could potentially overheat. nvidia shares down 2.5%. cvs is another big mover, up 2% after an upgrade from overweight to equal weight at wells fargo. raising their target price to 66 bucks from $60. they report, quote, the negative consequences from aetna have reached their highest point. they announced four new board members earlier today. a gain on roku shares 2% higher after it was upgraded from outperform to neutral. they are citing improvement to industry trends away from transition. now for more and top analyst calls, head over to

cnbc.com/pro. subscribers get the full story. back over to you guys. >> thanks, dom. final check on the markets. you can see the futures right now are about where they've been. they were down triple digits on the dow but the nasdaq continues to trade up in anticipation of nvidia, nvidia one of the stragglers, will report later this week. we'll be bringing it to you. make sure you join us tomorrow. "squawk on the street" is next. good monday morning. welcome to "squawk on the street." david faber at post 9 of the new york stock exchange. take a look at the premarket. bulls trying to protect some of this post election rally which has been half undone in the past week or so. big retail earnings, of course, and nvidia on wednesday. our road map is going to begin with some exciting stuff. we'll talk about stocks in the market and earnings and the trump trade. david? >> yeah, we will.