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. elon musk and the post-election

boost for tesla. those shares were up sharply in the premarket. nvidia shares were also under pressure. as you heard joe just mention according to tech information, they asked them to change the design of the server due to overheating issues. we'll have more on that. let's begin with elon musk in the post-election, boost for tesla. shares are up sharply in the premarket according to bloomberg. some members of the trump transition team are looking to create a new federal framework that would essentially ease rules for full self-driving gen. report goes on to say apparently going to be a top priority for d.o.t. >> i think we have to recognize a lot of things coming out of washington that sound really authoritative and sound like basically they're layups. then you have a problem these were all things left to the states and cities. suddenly the federal government is trying to claw back something. david, you can't do that.

we're a federalist system but we have left certain requirements about everything from insurance and vehicle inspection to the states. you can't just say, you know what, this is a federal issue and we're going to let people drive these cars. it won't -- the government will be sued. it won't happen. it's just something to talk about. >> i feel like we did that a lot during the first trump administration. we would talk about things because he would tweet something and then it would never happen. do you put that in -- do you put that in this category? >> i think it's a little more firepower because you have musk going for it. in the end we have a regulatory framework. the regulatory framework cannot be blown up as easily as if to say we're going to frac on national land. it's not like that. there's no national landwehr going to drive on. remember, i approached you last week that the interstate highway system is, indeed, federal but the leadup to the interstate

highway system is controlled by the states and local governments. yes, i'm going to say even though this has more authority, this isn't what's going to make it happen. >> that said, mr. musk seems to have significant influence, at least at this point. whether that will be maintained, grow, diminished, i don't know. certainly he seems to be involved in a lot of the decision-making going on, including the appointment of, for example, the treasury secretary, the debate for which continues. >> i had the ceo of intergy. they have nukes. we talked about a nuclear power grid. it looks like the new energy secretary might even like that. it doesn't matter.

we're stuck with this shm since the federalist papers that you can't throw out. we can talk about it as if there is no government other than the federal government but i don't know if we're doing our viewers a disservice and saying this can't happen. i think tesla's self-driving is terrific. that doesn't make it. >> it sounds like you're underestimating their resolve, jim, in undoing huge pieces of the administrative stake. >> i think we're not a federalist system when it comes to self-driving. i think we're -- when you talk to insurance hours, they would say this is a ederal issue. of course on the interstate highway but it's not locally. i just keep thinking about what's happening in california. california is state wide but it's not federal. and then you have austin, you have atlanta, phoenix. these re all municipalities. it would be fantastic if we could wave a wand but that's not

been the way of our government. i don't know if it can change. there are courts that will -- >> that's the -- that's where it's going. it's going to get tied up in courts. >> yeah. let's say we get a trump judge. then it goes to the appellates and supreme. now you talk about four-year processes. i want to get excited about it because i really believe in self-driving. i just have to restrain myself. the same way i love nuclear. have you to restrain yourself. you can't wave a wand. >> well, no, you can't wave a wand and build a small modular or reactor. >> and now 2033 -- >> or even two years. >> unfortunately, we didn't begin on this pace for nuclear years ago, in which it would have soothed the transition. the potential incoming secretary of energy -- >> you like him. >> -- is not a believer in the transition at all, from what i've read. >> liberty energy, which he

founded, is up five premarket. he's on the board of oklo. >> i saw that on page 12 of the deck. this is something -- i'm going to ask david to stick his neck out here. >> oh, no. >> here's conclusion, liberty energy, great fracing company. they frac would -- they would frac in your kids' school yard if they could. >> in pennsylvania, of course. >> first conclusion. one, there is no climate crisis. two, there is no energy transition. but this is my favorite. net zero, david, 2050, sinister goal. >> it's a sinister goal. >> sinister goal. wind and solar subsidies have been disastrous. now, this is, i know, david -- >> let's give them -- >> he secretly believes in this. it's called their deck. >> their deck from august 19th. >> the deck from their company. >> wow. >> you might like this one, too.

affordable reliable secure energy is foundational successful societies. that is the one i agree with. >> well, it sounds to me, carl, like there's going to be a lot more drilling. a lot more fracing. >> i love this guy. statue of liberty, if that had national -- >> is this liberty energy? >> move over, liberty, this guy's got game. i think there's a cbs program like cbs climate control. and they blow up things and stuff. i'm watching all this football and i see some -- it's a new one. >> it's a new one? >> some states just have fire and fire and fire. >> you mean fire country. >> fire country. >> on paramount blus. >> this is fire country, right? there's no climate control. just burn, baby, burn. >> we have 11 fires in the state of new york and new jersey. >> i know. my favorite is sinister, i like that. sinister goal. 2050. >> i had to put out a fire in my fireplace. we're in new jersey. you can't do that. >> mr. wright will be -- i don't know. >> you don't like this?

>> by the way, the department of energy was set up to actually deal with the nuclear -- >> i don't know if gen nuclear -- >> in particular for making the atomic bomb and -- isn't that where it came from? >> jen granholm, i don't know if she agrees with this. there is no climate crisis in net zero 2050, sinister goal. these are new for people who thought things were getting warmer. >> do you believe this like transportation will end up in a state/federal, city/federal fight in the judiciary? >> yes. hate or like it, we have a system that gives a lot of power to the states. >> but i want to come back to one here, which is the investment cases -- just hold on. let's assume he gets confirmed. let's assume we can -- that that's there's going to be a policy that says more fracing, more drilling all over the

place. what do you buy? what don't you buy? >> you buy liberty energy, lbrt. >> do you? where are we now, 13.3 million a day? >> 13.5. >> okay. 13.5. if we continue to produce even more, the price comes down. >> that's what happened in 2016. >> but typically the -- they don't want to produce as much because it's not as profitable. >> you have to hope one of the first things president-elect trump does is get rid of the pause we have on liquefied natural gas plants that can export. then you would buy natural gas, betting at that point it would start being the way that they repeat themselves and wean themselves off russia. >> unless ukraine -- unless the war there ends and russia starts supplying europe again. >> that's point number nine. >>

>>. >> david said something interesting. we're going to talk about what happened in 2016, nothing will occur. david? net zero 2050, if you're at the desk with me, we'll discuss how sinister it was. >> we're going to look back. >> sinister. odd choice. i would have said maybe ill-advised. i'm going to incorporate sinister -- >> it's a good word, though. >> how is this super micro -- it's a great word, sinister. >> may not get d-listed. let's talk nvidia. not a sinister situation bought but the stock is going to be under pressure. the company asked suppliers to change the design of the server racks for new blackwell a.i. chips. they've been overheating, more than anticipated. word of the repeated design changes has sparked customer worries it will take a little while and, therefore, there may be some delays. michael dell, though, came out favorably. >> the real installer. michael dell is saying, listen,

we're installing it. we don't have super micro, they have their own issues. hpe -- >> they're installing it and it's working fine. 72 gpus per -- >> it's hot. i had rich tobin from dover on friday. dover makes the cooling system. said it's not a problem. they do think it will be cry cryogenic. i want to talk about the journal ism business. if you wanted to create a negative story about nvidia and you wanted to make it so they couldn't respond, would you pick a few days before they report in order to break that story? >> i don't know. i'm not -- i'm not necessarily going to say you would. >> no. it was a totally rhetorical question. the way i could get the point across. i'm saying that this was a devastating piece to write because nvidia can't respond because they're in quiet. >> quiet period. >> yeah. that's why i felt michael dell, who by the way there's a

speech -- there's a big speech today at this atlanta conferences. michael dell is basically saying, look, don't worry about this. >> who is giving the big speech today? >> jensen. >> jensen has a speech. quiet period but he can still talk? >> he can speak in general. he can't address the hit job. >> rarely have i seen a chief executive talk more than jensen does. >> he has a lot to say. >> clearly. >> most of us don't have as much to say as jensen. >> i listened to a podcast he was on this week, actually. >> how was it? >> i understood 50% of what he was saying. >> that's 50% more than i thought you would. carl, i'm just saying -- i read the story. i said, oh, my god. this is the second time we've seen information in a similar time frame. i don't know the publication. i don't -- i was never involved with the publication. >> i think they do good work. >> i think that they can do good

work. i'm just saying -- people relied on them to a certain extent. they did good work on talking about elon musk's data center that helped me understand when i reported on friday about the latest capital raise for xai. >> i think that's terrific. i think also when you put this piece out, you're also cognizant there's no response from nvidia. all i'm saying, if you want to sell it on this piece of information, look how you -- if you sold the previous piece of information, you got crushed. >> there's no other competitor to the blackwell, right? you have to buy blackwell. what does it matter. even if the piece is 100% correct, ultimately, what is the difference? >> he's right. that's what people are doing, selling it. i don't necessarily know how good the quarter is going to be. i do know everyone that jensen huang told me this thing runs hot. there are some issues when it

runs hot. one issue is it has to be liquid cooled. anyone who knows the blackwells knows they are liquid cooled. super micro told me that. that's what dover who makes the technology for liquid cooled. michael dell has said liquid cooled. let's stop acting like this is a crisis. i'll go so far to say my trust is on amd. amd is up four points on that. >> you really don't like some of these easy narratives either on the upside with tesla or the downside on nvidia today. you think the picture's a lot muddier. >> yes, i do. i think it's important that we do our viewers -- we respect our viewers and tell them, look, this is not necessarily the way the story's going to play out. >> when we come back, we'll talk cvs and glenview with larry robbins. we'll get to a bunch of other

news regarding netflix and tmo and bas nkinverted, disney's win streak, when we return.

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take a look at shares of cvs. the stock is going to be up on news that it is adding four new board members, including glenview capital's larry robbins, who has been active in the stock. active is the word he would prefer to use in the sense he's been trying to encourage the company to focus not on a split, that had engaged some shareholders with an opportunity or opportunity of creating value, splitting essentially the health care and retail businesses, but trying to get the company to focus more on execution particularly when it comes to medicare advantage, where it mispriced, jim, a lot of policies previously. it has dismissed its former chief executive.

it has a new ceo. and now it has four new board members, including mr. robbins. they are, as well, leslie norwalk, guy sansone and doug shulman. three of the four were recommended by glenview. the other was mutually acceptable to both companies. the board goes up to 16 members, but my understanding is it will eventually come back down to 12. significant board composition change here for glenview which believes in the company and will have to believe in it long term and thinks they have to get their house in order when it comes to pricing things. on the health care side of the business is the challenges

retail faces. >> the new ceo with very positive comments. when you have leslie, larry, guy and doug join the board, there's what i regard as being a commonty, aindustry leading businesses, but addressing the challenges. new leader aetna is really important. i happen to think all my communications with mr. joyner are so positive. i also think they did close all the underperforming cvss. unfortunately, we do know that may add up to another round of underperforming cvss. >> to your point on november -- i think it was november 6th, but early in the month of november, they did appoint a new leadership team with had font for caremark and ceo of aetna. a lot more opportunity to talk to larry when he joins me an

hour or so from now to talk through this. >> i think mr. joyner realizes we screwed up. not on the store side. >> and also some acquisitions that overpay. overpay. not that they overpaid. not during his leadership period, but, nonetheless, certainly has been frustration. if you go back and take a long-term look -- >> very collegial. >> they've been working behind the scenes for some time. >> that's good. >> the proof will be when the stock does something different than what you see right there. >> already wells updates, 66 target. >> look. i think -- first, let me say i like karen lynch. i think she was doing a lot to try to diversify. they had this period where the brick and mortar is being killed by amazon. now they have to address the aetna. even though she was from the

aetna side, it was unfortunate the way things shook out. does she deserve better? i'm not involved with the company but i do know i don't think it was -- i think it was so summarily done, it was tough. >> it's a lot better than opening walgreens boots alliance. >> i think david is doing a good job. i'm just saying -- i'm sensitive to the idea that here is a person who was on my show two weeks before she was fired and i thought she was trying to get the brick and mortar part done right, but the aetna part was the problem and the acquisitions were a problem. >> you didn't give her a, you can't handle the truth interview, so you're not responsible. >> no, i have done that. >> we were here for that. >> jim issued the code red? >> yeah. >> you're right, i did. >> i can't take that job. larry kudlow turned it down. i'm turning it down. >> we'll get cramer's countdown to the opening bell. several sell sides, including

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let's squeeze in a mad dash before we get an opening bell about a minute from now. what have you got? >> well, david, there's a curious update of moderna. the reason it's curious because it really just talks about moderna as a company. does mention that rfk jr. nominated to the health and human services. now, moderna, the last leg down has to do with the fact we know rfk jr. has not been all that pro for -- >> vaccines. >> yeah. and moderna is a vaccine company. >> yes, they are. >> you might want to say, let's take a flier and bet this is over done. if you feel that way, i suggest you actually go for pfizer, which also has that, but people have turned on pfizer -- just hate it. >> well, let's not forget the activist side of pfizer as well

with jeff smith. >> they stopped talking. >> i'm sure they haven't stopped talking but i don't have a lot of updates for you. >> and that's a -- glaxo, too. anyway -- >> that's election related. >> vaccines -- real time exchange at the big board it's coatings manufacturing celebrating its tenth anniversary of its listing at the nasdaq. fortinet, cybersecurity celebrating 15-year anniversary ipo. you mentioned health care names. last week, worst week in four years. >> it is very striking. you have companies like a merck that will have a good vaccine, some people think, maybe the vaccine will be pulled. that's not going to happen. in general, the food and drug, whatever was proved went down very, very hard. i recommended mondelez because it's only 30% u.s.

these stocks are under a level of pressure i find extraordinary, particularly because we're pretty good at what these companies do. seems like -- >> this is a custom basket that b of a issued this morning. they call it ml u.s. maha, which is names exposed to hhs policy risk. gives you a sense -- you can see right there, when we got the notion rfk might have a role. >> that's why i think if you want to find one that works, i would suggest ol-myers after abbvie's fail, and chris burner is doing a terrific job. that would be one, okay, i'm going to make my stand on bristol. >> another one, thanks to b of a, packaged food, fifth worst in 20 years. >> general mills has come down, conagra yields 5%.

i wouldn't trust kraft heinz, the punitive hhs secretary is very much against processed foods. >> yes, which -- >> i know. but the problem is -- >> may not be a bad policy. >> it's a bargain with the devil. most people can't afford fresh, that's why we have canned. >> fresh is very difficult. processed is certainly not necessarily a good thing for you. literally, by the way, speaking of processed and thinking glp-1s, he also has come out or there's been reporting, carl, i believe, about he may be opposed to ozempic in some way. >> he did say -- >> he said they're gouging. charging way too much. >> he also said the cure for diabetes is a salad, healthy food, which is why that photo on the plane of them this weekend having mcdonald's, is that a way to reassure the street? >> i'm thinking about buying apples. >> here we are again. trying to figure this out. >> apples, isn't that the new vaccine, apples? >> apples are great. >> what do they do?

>> apple a day keeps the doctor away. >> boom, i'm going home. >> i had an apple yesterday. very delicious. by the way, there are so many different varieties of apples. they're coming up with new ones all the time. >> did you get your mcintosh vaccine? i like the golden delicious vaccine. >> literally, one of the great performers -- >> i don't want to know how much it's down today. i don't even care. >> it's down 2%. it has come well off -- this was a $900 billion market value company not long ago. now below $700 billion. >> well, you have a terrible quarter that is still not explained that i can't understand. you have an hhs person who has, point blank, says these are -- they're gouging. you have this hims and hers problem involving the shortage. you have the -- >> whether there is a shortage and, therefore, you can have -- >> right. in the meantime, studies keep coming out -- >> compounders. >> look at that retreat.

a company in retreat. the new cfo, old cfo was a great storyteller out there with google needed, by the way, because our new fcc potential leader is against the conspiracy of censorship. >> there's a big piece in "the washington post" about brendon carr. >> that was interesting. >> some of the support he vocalized for "60 minutes" when trump was criticizing their editing notion and he could be a tool in punishing media firms that don't give favorable coverage. >> i think there is a belief within the administration that a lot -- >> the incoming administration. >> new commissioner. that these companies skew left. we know that google, when you read vice president-elect vance's comments, he thinks google is an institution that can't tell the truth to save its life. that's why he seems to side very much with the current ftc head.

>> as an investor, it becomes somewhat a difficult time. >> quizzical. >> yes. to take a very strong view or one or the other, given these various crosscurrents, i guess. >> how do you trade it? you can't trade it because every day -- your head's on a swivel. reagan, you're spewing green vomit. >> even to the point where obviously day one after the victory -- you're going exorcist with me? >> you bet i am. because it's an existential moment. i'm sorry. >> there was an assumption. there still is. there was going to be an increase in deal-making. >> i still believe that. >> i believe that's a fair assumption. that said, your point about vance, we'll see, i haven't heard names. maybe you have ftc and department of justice, maybe delrama would want to come back in -- >> he's a very reasonable man.

don't you slag him. >> i don't at all. that was a joke. my point would be, it could be that road or a very different one if vance has more sway there. to the extent you follow the populist rhetoric, to some extent, and you get somebody who's not particularly favorable towards tech as well. the assumption about more deals across the board isn't one you can absolutely believe. >> he was uniquely nonideological. >> some do question at&t/time warner. he believed vertical -- >> what do you think about barclay playing for disney. >> you want to talk about that? >> they want to talk about barkley playing for disney. >> warner bros. reaches a deal with the nba. they were suing their one-time

partner. they got something out of it. what they didn't get is the right to air the nba on tnt, at least the games, starting in the 2025 season. but what they did get was not insignificant in terms of -- by the way, the news is out this morning. it came out at 9:00 a.m. this morning. there's any number of things. they'll extend the media partnership 11 years. they have a digital partnership as well. and they also can telecast games in the nordics, poland, latin america, other than brazil and mexico. house of highlights and bleacher report are very important component of this as well because they will have access to all of those highlights. many people, particularly younger people, may not watch all the games, but they certainly do look at bleacher, watch house of highlights. so, having access to all of those is important for those

properties. they may make as much as $200 million from the deal, is my understanding. they also were going to be the nba's tv partner. that, in part, is what they'll be getting paid for. and they will produce "inside the nba." i'm sorry, i'm just looking. another important component of the deal. that involves disney. "inside the nba," charles barkley, people love that show. it will continue. it will be produced by warner but licensed to espn for when they have their games. and in return they're getting an exclusive slate of big 12 football and basketball games starting in the 2025 season. my understanding as well is the guys who do "inside the nba" will also do inside sports show of some kind for at&t. overall, here was the key question. you lose the nba, what's your subfee going to be?

are you cut back from $3 to $1? the argument would be from warner bros./discovery, absolutely not. we have enough sports, whether it's hockey or nascar, college football, the addition of the games i just mentioned, the french open and more, and we're adding other value here separately. but we're not going to get cut back when we do our new distribution deals from as much as $3, which is what we're getting when we don't have the nba to $1. they say no way. so, hence stock price moving in a direction. it is not that often seen as our viewers well know over the last few years. namely up. >> your reporting offline, people will have a good feel for it? >> you know, malone continues to think that international is where the real opportunity may be and when their deals with sky, with our company come off, that being able to put together an international offer of direct-to-consumer content is going to be quite valuable.

obviously as we have said any number of times, this company has been fighting against a debt load that is so enormous and fighting against a more rapid decline than even the most pessimistic of forecasters might have imagined for linear. those remain in place. but that said, zavlov has cut costs. we questioned his decision-making when it came to not reupping with the nba, they had an opportunity to do. that deal ssentially taken in part -- the streaming deal taken by amazon but really comcast, our parent company, coming in and bidding a lot more, but they got something out of suing their partner here, no doubt they did with this settlement. >> important point. a lot of people own that stock because it's a $10 stock. you shouldn't buy stocks like that. it's just the dollar amount. a lot of things being done right here in order to be able to advance. they don't have a debt problem until a couple years from now. >> their cash flow is still sufficient.

it's hard to find growth capital at this point but that's hard for a lot of these companies. >> at no point did you say the industry is awful and i think that made me feel better. >> what industry is awful? >> the tv industry. >> it's awful, jim. >> thanks. >> not netflix. >> disney is riding a nine-day win streak until today. that's the best streak since 2018. we didn't mention the paul/tyson fight on friday, all the problems notwithstanding, 60 million viewers for a fight. >> they better work out that christmas day game, i'll tell you that much. buffer. >> again, back to malone, he would argue, yeah, net neutrality means we have to make sure the -- invest billions to make sure everybody can get their stream. meanwhile, netflix is riding for free when they have 60 million separate streams going out. football and amazon, the big tech companies benefit the same way, as argument would be, hey, they should pay a lot more for the privilege or allow comcast

to get together with charter and start saving some money. >> i just find when you watch something, you expect it to come on and you're watching it battle between these two women and you're thinking, when is the thing going to start. i'm ready to go to bed, kids. >> i went to bed. i heard it wasn't worth staying up for. >> the female fight got great reviews. >> it was amazing. my kids were transfixed. don't turn it off. >> made me sad. remember the days of iron mike tyson. i mean, wow. >> he's still formidable. >> without a doubt. >> it didn't go down. >> it wasn't 1985. last night espn was running a series of tyson fights from the mid-'80s when he would knock everybody out and let's call it a minute to three minutes in the first round. then he would go over to them and make sure they were okay. >> not unlike what happened to iron david faber when he broke up with the fight with iron david faber. >> elsewhere in media, jim,

roblox, this new plan to restrict chatting for kids under 13 outside of games comes after the hindenberg short. we got an upgrade of roku as well. actually, it was a cut. it was an upgrade. baird goes to outperform. >> robo, you go over it, you start saying -- he did -- hindenberg did say, look, certain things have to occur. i felt that bazucki said, don't worry about it and then he addressed it full on. there's a position where i question whether his initial response was adequate given the fact that the charges were made. stuff i got back from hindenberg after bazucki's initial dealing with not disingenuous seemed flip regarding the charges hindenberg raised. >> did you hear i interviewed

ben affleck last week? i don't know if you heard that. >> yeah. >> hung out, me and ben. >> well -- >> we talked -- what we really did talk about, jerry from redbird, back to netflix, they still care about movies. do movies move the needle for the service? is it more things like the fight, or more importantly, producing series that people really want to watch? affleck said for his part, he continues to see demand from netflix. >> do you have some film so we can get over this thing already? >> yeah, let's get over it. >> netflix, they have a very robust demand for movies. they are -- their metrics are a little different, but that's what else is -- hollywood had universal metrics. the only thing is warner is doing 17% and disney was doing 15%. now apple has an entirely different economy. and entirely different goals.

amazon has an entirely different company. you have to be mindful of what constitutes success for your partner in regard to each property. netflix is not losing money but some people have lost money on streaming. they want to bring it back. netflix is definitely, to my knowledge, invested in movies and will be. not the theatrical experience in the same way because they want you to watch it. >> you can watch all of our interviews on deliveringalpha.com. he's amazing. >> he is great. >> he is great. >> still helpful, good and he's right. kind of like what happened with music when they realized -- live nation, the only money we're going to make is on tour. i have live nation with ben affleck. i took affleck from a sell to a hold a few years but my guy, is he making us money with the buy? >> the two names -- >> i just said that. >> i wasn't listening. tesla up 7.4% and nvidia -- >> because it's just wave a

magic wand. >> i was kidding. i was listening. >> you're laughing on the inside. i-95 is going to be a hands-free zone. if you think that's the way it's going to work -- do you think that's what's going to happen? >> the federal government can set policy broadly speaking. you do need a uniform approach, don't you? >> you can't just get on it with self-driving. >> you can't magically appear on the interstate. >> it's possible once you switch to the interstate, maybe you're allowed to self-drive and maybe that's the way they do it. >> uber down six, going to be a two-month low on uber as we see that disparity between these names all the time. >> by the way, ibm expanding in a.i. in a collaboration with amd. you could say amd is not necessarily up because of the problem the information cited. >> as you well noted and i think appropriately so, michael dell responding somewhat forcefully saying, we're -- you know, we're an a.i. -- >> who is michael dell versus

the information? david, go ahead. >> michael dell is -- >> he's a hitter. >> yeah. he's underestimated in terms of his impact in the 20th and 20th centuries in this country. >> including charity, which is he insane about but will not ever say it. >> in so many different ways. >> you mentioned cooling, jim. we got an upgrade of hpe, strong buy, they go to 29. that's a huge part of their story. >> i think hpe is very undervalued. when i had them on, i was incredibly impressed. i will tell you, these guys are putting up -- when super micro got in trouble, so to speak, i don't care about listing, i care about business. and -- >> although it is up 20%. >> but they came on in '17 and said, we have something.

and, oh, my god, david, a double upgrade of affleck -- >> that's aflac. >> just kidding. >> what was he like really? did you go out for a cocktail after? >> of course. we always hang out. i can't get him to stop calling. every night he wants to chat. >> watch bonds today as well. we'll get a little fed speak. goolsbee at 10:00. long bond at 4.68, backing off a touch right now. stay with us. the not-so-secret to our success? earn and keep trust. build and maintain financial strength and stability.

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you can say of all the trump trades, bitcoin has been one of the strongest. closed at near 70k the day of the election. now punching through 91k. up 114% for the year. we'll take a break here. dow down 77 to start a very busy

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one thing i'm struck by and talked about how a lot of different brokerages are coalescing like robinhood. it comes back to something you were saying about crypto. robinhood is a natural place people trade crypto. this is kind of a rejections of the current regulatory regime. people -- when you get to crypto enthusiasts, they disregard gensler. without him people feel robinhood would do really well. he's a thoughtful man, but that if you lost -- his view lost so people feel, if you really want to play it, so to speak, you don't want to own it. robinhood is natural. >> needham goes to buy today, target of $40. >> i think he can go. robinhood is one of those, i think palantir is one of those. they regard these repudiations of the current regime. defense department repudiation

for palantir. and you can play it that way. i think that's actually much better than say, oh, self-drive, tesla. >> yeah, a lot more -- >> they work. >> that's a good one, jim. a lot to handle this week. we'll see you tonight, "mad money" at 6:00. glenewvi capital's larry robbins as we start the week slightly in the red.

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good monday morning. welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla and david faber. live from post 9 of the new york stock exchange. take a look at stocks after a down week. we're a little unchanged in the s&p 500. nasdaq is firmer, again, in the last week. we had a pretty broad big selloff, especially in the nasdaq. technology is lower as in sector, industrials, health care, real estate, they're all

weaker. consumer discretionary starts off in the green for the week. tesla is up another 7%. some of the restaurant stocks is as well bouncing back. consumer staple, maybe because rfk was pictured with a mcdonald's. consumer staples, communication services all higher in this morning's trade. take a look at how >> again, the trend has been higher treasury yields and that continues today. we're bumping up against that 4.5 level on the 10-year. 4.461 is where we are now. the two year higher at 4.23%. here are some movers we're watching. i mentioned tesla. shares getting another pop on reports president-elect trump's transition team wants to relax rules on self-driving vehicles in the u.s. but uber shares are dropping. nvidia under pressure after a report in the information said the company's new blackwell a.i. chips have been overheating when connected together in servers. we'll get the streets taking a moment on that. shares are higher adding four

new members to its board after discussions with glenview capital. larry robbins will talk about the board appointments and the future of the big pharma chain. >> home builder sentiment in november rose three points from october to 46 on the nahb sentiment index. anything under 50 is considered negative, but it is a vast improvement over last november's reading of 34. current sales conditions rose two points to 49. sales expectations in the next six months increased seven points to 64. buyer traffic rose three points to 32. the builder cited the republican sweep in the election and potential deregulation. president-elect trump promised to open federal lands for home builders. builders desperately need more land. that's why m&a is having a record year in the number of deals. builders simply need more land and operations as they used to

account for one in six homes for sale. now it is one in three. >> the big guys want to get bigger. they want to get into more markets, more price points, more types of product. as they're doing that, they're finding the most efficient way is through acquisitions. >> wayland, one of the biggest investment bankers in the space notes the big builder have gone to 50% today. half of the deals she says done this year are with japanese buyers who she says are extremely efficient. they build the house in 3d models first and much of the structure in a factory that reduces 20-30% of waste and speeds delivery times. u.s. names with big acquisitions this year, taylor, morrison. >> thank you, diana olick. it's a big earnings week especially for some blue chip companies. walmart out with earnings tomorrow. target's going to be after

that. lowes home improve. , and nvidia earnings is the big one as well on wednesday after the bell. gap as well has had a comeback story. as far as the data, it's light. we'll get a lot of fed speak, get housing starts, and building permits. see the state of the housing market, of course, manufacturing on friday is going to be key. when we talk about these higher treasury yields we've seen, rising yields in the last few weeks, maybe one reason the stock market got spooked last week, it's easy to correlate it with the surprise chart, which is at a seven-month high. what is that chart? city economic surprises measure the beats. in other words, economic data coming in better than expectations. look at how closely those two are linked with the 10-year treasury yields. better economic growth, that's the story. better than expected growth. the question is, we've seen a jump from three-four to four-

five. does that hurt the economy? so there's, again, this is thanks to jim paulson. there's a lagged impact of a higher treasury yield on economic data. if you look at those higher yields with a lag, you see actually that it starts to weigh on the data and the data starts missing. is that gonna happen? we'll see. this has been a strong economy. could we absorb it? we'll see. higher treasury yields, higher consumer borrowing rates, higher auto loans, we've seen the impact of high rates before. we're on the lookout for that again. something to be aware of as we watch treasury yields start the week again higher. >> meantime over the weekend, you did have some desks raising their forecasts for core pce. morgan stanley on friday night was at 2.2 for 2025. they go to 2.5.

they argue inflation might be stickier. that's not fully folding in the impact of deportations or tariffs. >> that's part of the story too. better growth comes stickier inflation here, and that's why we heard from fed share powell last week where he sounded a little more cautious on the rate cuts. he even used the word careful about the policy path forward and then the odds of a december cut. it's still above 50% right now, but we've come lower. suzanne collins of the boston fed recently said it's not a done deal that we'll cut in december. also the amount of rate cuts expected in 2025 have come down to two or three. >> yep. >> from where they were, which were several. >> nine meetings through 2025. markets pricing in three cuts. so maybe a cut every third meeting. meanwhile, the three-month annualized rate of core cpi is up three straight months. >> the core is the problem. this is why i talk about the stubborn inflation. it's really good progress from

9.1% where we were at the height of the cycle. but that last mile we were all worried about is proving a little bit tricky. is it still moving in the right direction? a lot of it will depend on the trump agenda and whether we'll get the tax cuts, what we see in the form of tariffs, deregulation. following these treasury sweep stakes, who's going to lead the treasury department? over the weekend, the new york times article mentioning some in-fighting between scott bessent sent and howard lutnick. >> elon musk favoring lutnick and now the latest reporting, again this is not our reporting, i don't know if you have your own, sara, is that there may be frustration with that. so you move on to a different group that includes kef mar, marc rowan, and perhaps senator bill haggerty. >> i think the market would be fine with all of these people. >> all five? >> any of them i think are seen

as knowing what the treasury department is and what they do. kevin warsh has been hockish basically because he's a former fed governor, and i know he's not being considered necessarily for the fed right now, although mentioned also when that pick comes up. but he's been a little more hockish, also marc rowan has been hockish about he feels about the economy. we last heard from him the week before the election. he was at this conference i covered on my panel. there were 12 ceos. most of them u.s. bank ceos. i threw it out there stupidly to anyone who wanted to pick up the ball on trump, and he did. and what it would mean for the economy. listen. >> i'll put this to the u.s. ceos on the panel. does it matter what happens in the election to the outlook for 2025 in the u.s. economy one way or another? anybody? no one wants to take this obviously. marc, come on, help me out. >> i think there's an absolute

chill on m&a activity as a result of current policy. i think you'll see it freed up if there's a change in regime. i think you'll see investment liberalization if there's a change in government. >> if trump wins? >> if trump wins. but we're all talking about in the u.s. shades of good. we really are talking about shades of good, and to come back to your point on rates, we massively increased rates, and yet stock market at a record high. no unemployment. capital market issuance at will, and we're stimulating the economy. i'm trying to remember why we're cutting rates, other than to try to equalize. >> that was just the hockish point. >> he's been making that point. he made it any number of times now. private credit does benefit higher rates. if you can put up double digit returns or have those

available, that's quite attractive. rowan is an impressive guy in every way. an incredibly effective communicator as well. so certainly, i would imagine there would be a great deal of support from wall start for marc rowan in that position. no idea if he's interested or will get it. >> kyle pass tweeted that howard lutnick wouldn't be as favorable for the market than scott bessent because he's a hedge fund manager. lutnick knows the markets inside and out, built three businesses around it. musk, when he came out and backed lutnick, said he favors the disruptor attitude. he's been the head of the transition team. he's been an avid trump supporter. >> amongst the people i speak to, they would rather have any number of those other people. >> yeah. all of them know the business and the department and what it

would entail. and i think the market will be interested, but seemingly okay. because i think all of them would implement the trump agenda as he has described it. deregulation, tax cuts, tariffs. >> we will see. let's get to the broader markets this morning. s&p coming off their worst week since halloween. is the post-election rally cooling off? edward jones is here. mona is here as well. do you think we're in the midst of i won't say a historical draw down but one that's common, 5-10%? >> i think we could get a little bit of post-election volatility because we saw such a post-election rally over the last couple of weeks or so. part of that was because that uncertainty lifted on getting a clear and definitive winner. now we have a clear and definitive house and senate as well. some of it was because of the

pro-growth policies. now people are thinking about the uncertainty component. where do we go with tariffs and the immigration policy? generally, we still see the underpinnings of this bull market intact. we have an economy moving higher. we have inflation that thus far is pretty contained. and a fed, it's going to be gradual, but they are moving in the right direction. >> what are yields trying to tell you between fiscal discipline, government efficiency, versus tariff, deportation, inflation? >> there has been some analysis done on it. it's almost a 50/50 split. the 80 basis points, 40-50 is because the u.s. economy is holding up better than expected. i know we referenced the citi economics surprise index. the other 40 basis points are because we are seeing this potential for deficits rising, the potential maybe for some inflationary pressures, although we don't see a return

to that seven, eight, 9% environment any time soon. >> the separation between, say, brent and inflation expectations or yields and crude. is that weird? >> you know, it is interesting. i think part of it, policy driven. we know this is an administration that wants to increase supply of energy. we're seeing mixed environments globally as well. but yes, to your point, a little bit more strength domestically. >> so does your basket selections of stocks change? >> even pre-election and through post-election, we were still of the mindset that this broadening of market leadership and it's continued continues from a cap space perspective. we continue to large and mid- cap here, and then we favor industrials and financials to some extent as part of that non- tech basket. >> you think financials, is that the cleanest story? >> it's a clean way to play it in that they'll benefit from the deregulation. they're more domestically facing, so the tariff wars,

they avoid a little bit of that issue as well. it is a nice story. potential for some valuation expansion as well. >> that's been a durable trade relative to others in the last couple of weeks. mona, always good to see you. nvidia shares falling on reports of overheating chips. >> tesla's rallying as the transition team looks to ease some rules for self-driving vehicles. what it means for tesla and uber. >> and we've got an exclusive interview with glenview ceo larry robbins. he along with three others joining the board of cvs. squawk on the street coming right back. leo! [whistling] ever since we introduced him to the farmer's dog,

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nvidia trading lower today. the information reporting y vid ya's a.i. chips have been overheating when connecting to server racks. they delayed their chips reportedly due to a design flaw. nvidia giving way to apple in the market cap battle, now below the iphone maker. it comes ahead of nvidia's earnings this week. harsh kumar joins us now. this report from the information that they're asking suppliers to change the server racks for blackwell due to overheating, how much does it concern you? >> it does not concern me very much at all. look, nvidia went through this about five months ago.

the thing with nvidia is nvidia is quick to make change, and this particular overheating issue with the blackwell, that's already been played out. and the design was changed, so if we're talking about potentially a new overheating issue, we may be talking about this blackwell, but i can tell you that jensen is not the kind of ceo that likes to make the same mistake twice. so i don't see this problem happening. or if it is, it's probably not a meaningful issue because jensen was able to come back or nvidia was able to come back from the previous issue in less than two months. >> does it change the numbers if there has to be a delay? jensen did tell cnbc the demand for blackwell was, quote, insane. i don't think that's the problem. but the timing? >> i don't think the timing changes at all. i think blackwell is ready to go. i think blackwell is fixed. and we maintain our tag line,

you have to own nvidia into the blackwell ramp. that's going to be the rosiest period of owning blackwell is when blackwell is ramping. i maintain that we've had this overheating issue, particularly with blackwell. i think it's been addressed. i think we're expecting like tiny, tiny bit of volume to come through in the october- quarter, and a substantial volume to come through in the january-quarter. that's the way we see it with nvidia. >> harsh, we are going to get earnings fairly soon. so what are you looking for, and perhaps even more importantly when we listen to the commentary around the earnings, what igoto be some of the key milestones that you're going to watch? >> yes. so historically, we go back last one and a half years, nvidia's been on this cadence of about $2 billion beat and $2 billion rise. literally, the quarters are rising about $4 billion a piece. for the october-quarter, we're

expecting slightly than the $2 billion cadence. we're expecting about a $1.3 billion beat. blackwell isn't out yet, so the volume isn't there. when you get to the january- quarter, blackwell we think will do somewhere around six, seven, $8 billion of rev view. you could potentially get two situations. you could get extreme supply constraint. you could also get a pause in the h-100 and the h-200 complex, the older chips. why would you want the older chip when the latest chips are available? we're expecting slightly less than $2 billion beat, but the numbers will keep rising. but when you get to april, it's a whole different ball game. we, you know, again tag line you have to own it when the ramp comes. starting april, we see a massive ramp in blackwell. see the introduction of grace blackwell at the end of the april-quarter, early july- quarter, then you're off to significantly bigger beats than the $2 billion historical beat. i would urge patience with all

the volatility we're seeing with this stock and focus on the ramp of the new products. the reality is, guys, there's nobody else in this space that does what they do as well as how nvidia does it. >> what about supply constraints? does that have the potential to surprise, negatively? >> yes, it has. it oes have the potential to surprise. because like you said, the demand is insane. and that's, again, the word i would use going off of your sentence. you know, they just won't be able to make enough potentially in the january-quarter, potentially even in the april- quarter. i suspect that they will be catching up for the rest of 2025 calendar to potential demand. >> all right, harsh. thank you for helping us ahead of earnings. >> let's take a look at shares at tesla. they're up yet again this morning. 8%. there it is, 7.8%. this report said president-

elect trump's transition team is considering easing rules for self-driving cars. that is having the opposite effect on uber. if you recall, it does seem to move counter fashion with tesla and is down about 5.6%. we'll have a closer look for what's at stake for both of those companies up next. check out palantir. down after a significant run up into this week.

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insurance. tesla shares getting a nice bounce this morning following some reports around the trump transition team and their plans for self-driving vehicles. our phil lebeau has more on that. >> hey, carl, this is the bloomberg report that came out from sources in the trump transition team saying they want to make sure that under the dot and the trump administration, excuse me, that autonomous vehicle technology and the development of autonomous vehicles is a priority. so this sets up the question, what does that mean?

well, it could ease federal oversight. nhtsa, they are technically in charge of federal vehicle regulations on a federal level. they would like them to be much friendlier to the idea of autonomous vehicles that would speed up the development of robo taxis in the case of tesla. remember, tesla and the cyber cab, which elon musk showed during their event in october. has no steering wheel, had no pedals. the goal here is to put this into production by 2026. though most people say, look, that would be moving it very, very quickly. 27-28 is more likely. it would have full autonomy. how is that different than what you see with teslas right now? well, remember that the current unsupervised, there is no full self-driving unsupervised. it requires driver oversight right now. yes, you can take your hands off the wheel, but the driver is expected to stay in charge, in control of the vehicle. in other words, you just can't

fall asleep there. that is the requirement for full self-driving. by the way, they expect to try out unsupervised full self- driving perhaps in texas, perhaps in california as soon as next year. as you look at shares of tesla since the trump election on election day on november 5th, shares have been off to the races. keep in mind that states regulate vehicle licensing as well as driver licensing. and ultimately, many people this determination about autonomous vehicles and how widespread they become, it becomes a states right versus a federal right in terms of regulation. and i think ultimately, guys, that's where we're headed somewhere down the line. >> meaning, yeah, jim raised this, this morning, phil. so does it end up in the courts conceivably? >> yes. >> if you get this federal mandate that the states say no thank you? >> i think so. because i think, david, what you could see happen, let's say

you do have a dot that is anything goes, put out the autonomous vehicles out on the road, whatever you want to do. you may have some states that will say follow the federal rules. but you may have other states, california a good example, where they'll say no, no, no, we set the rules of the road here in the state of california. and we are in charge of the software that is in a vehicle for autonomous vehicles. we are in charge of licensing drivers, and ultimately there's also going to be the question that will play out, what happens with the trucking industry? you can bet that the teamsters are actively pushing for a greater say in terms of how that is developed. >> i also saw a report, phil, that he's considering, former uber executive, to be the department of transportation secretary. he hasn't nominated anyone officially yet, but that's interesting. >> sara, i wouldn't be surprised if they go outside of government. sara, i wouldn't be surprised if they go outside of

government especially with elon musk pushing for them to really change the way the system is set up right now. bring in somebody from the private sector. that would be my expectation there. >> all right. well, we'll wait that pick as well. thank you very much, phil. a reminder as we head to break, you can catch the 10:00 a.m. of squawk on the street any time, anywhere. follow the squawk on the street podcast available now on spotify, apple music, and more. we're back in a moment.

welcome back to squawk on

the street. i'm contessa brewer with your cnbc news update. an ally to russian president vladimir putin said moscow may use new weapon systems in ukraine if kyiv strikes russia. the kremlin also said today it would respond to a reckless decision which would draw the u.s. directly into the conflict. president biden gave ukraine the green light yesterday to use those longer-range weapons inside russia for limited strikes. president biden arrived in rio to kick off the g-20 leaders summit. yesterday, he became the first seating u.s. president to visit the amazon where he declared there could be no going back in climate resolution. he took part this weekend in the apex summit. roblox will no longer let users younger than 13 message other gamers. this new safety measure is part of an expansion of the

platform's parental controls. parents will be able to set spend limits and monitor their kids activity remotely without needing access to their account. that's a big step forward for roblox. sara? >> okay. thank you, contessa. don't know how i feel about that. stocks aiming to rebound after the s&p suffered its worse day of november with the post- election rally taking a breather. i spoke with nelson and asked if he thinks this initial market rally post-election would continue. >> trees don't grow to the sky. definitely not uninterrupted. there will be something that will upset it. i think you've got euphoria from the election. on the other hand, you look at the international stocks have got slayed over the last week or so. i don't know what the market is. i mean, you've got the s&p 500 and then you've got the s&p

2025. you know, that's what it is. you've got two different markets. it's the wrong name. you've got these 20 companies that are swinging a cat around the room, and then you've got these other companies. >> by the way, you can catch the full conversation along with the other panels at deliveringalpha.com now up online. you know, his point is he's not in those sort of big mag seven companies. he makes his case for some of the ones he's on the board of. like unilever he was talking about the opportunity there got hit post-election because it's listed in the u.k. but he thinks now is the time for those kind of companies to shine as the rally sort of broadens out and the outlook improves overall. >> do we guess he's upset about policy that might affect a wendy's out of hhs? >> we didn't get into specifics on that. i think overall, he's pretty

encouraged. he's a friend of donald trump's. >> he said he put musk and trump together, right? >> yeah. he was the matchmaker in that one at a breakfast, brought them back together. and feels good about some of the policies, he was focused on some of the broad stuff. he was focused on the balance sheet and the deficit. he's excited to see what musk will do if he's given the opportunity. he was talking about deportation and big picture issues. you're right. tomorrow i'm doing this deep dive into rfk and what some proposals on big food would look like and how food companies might respond. >> that will be widely watched. when we return, shares of cv on the move after agreeing to add four new board members including larry robbins who will join favor in a cnbc exclusive in a minute.

we're just a week and a half away from thanksgiving. while retailers themselves are a huge focus this time of year, payments related stocks might be something to add to your holiday li. nentour market navigator segment later on today, power lunch 2:00 p.m. eastern time.

cvs announcing this morning that it will be adding four new board members. that's part of a deal with glenview capital management, a large shareholder. joining me now is ceo and new cvs board member as well, larry robbins. good to have you back here. >> happy to be back. >> let's talk cvs. in a quote from the company's chairman in the release announcing your appointment along with three others, they say that the board will, these

board members will add new thinking and deep market industry experience. i'm curious, what new thinking do you think you will add to this board that will allow cvs to prosper in a way that will be reflected in its stock price? >> to compliment the board over an 18-year period, the company did diversify. we did the specialty drug business and we like the basic health insurance business. we like aetna. the execution in recent years has been quite poor. as you know and as you have reported, there are significant losses in medicare advantage both because of the cycle turning to head winds but also because of poor, undisciplined pricing decisions. as well, everybody has a budget, and the company in its diversification strategy went after acquisitions we think were, to say it generously, more than fully priced. and so we think therefore, it's time to digest, to operate, and

to really bring the operational rigor bar up a little bit. and we think that the board members that are joining particularly guy, leslie, and doug bring tremendous healthcare experience and can be helpful as the board unifies in order to try to improve the execution on this phenomenal collection. >> this new management team and they are brand new, really, they're certainly aware of some of the execution problems that have taken place. it's not as though it's a mystery to them. what do you believe they are already undertaking, and when will they be able to run out or this problem will be behind the company, so to speak, in terms of that mispricing? >> sure. one of the reasons we like the insurance business is because it is self-correcting. commercial insurance, you can just change the prices the next year, and medicare advantage where we believe they are losing about $3.5 billion, it will take a couple of pricing cycles. the calvary and the help is already along the way.

the pain we're experiencing as shareholders in 2024 was the result of pricing decisions made in the first half of 2023. the analyst community broadly has tracked the pricing of the manmade plans for 2025 for aetna. and of course, they are more disciplined. they are more fair to the company, not just fair to the beneficiaries. the good news is that the customers have been waiting the whole time. cvs has the industry leading star scores or cms's quality assurance. the quality they're delivering is wonderful. grandma and grandpa got a much better deal than the shareholders in the last year. that will try to normalize. we think it will take three to four years to get back to 3-5% positive target margins. there's already signs that are there. in addition to that and the pricing discipline, we think the team and the culture of cvs has a tremendous opportunity to improve.

the board obviously agreed. the board took action on management independently before we joined the board, and the board was generous and welcoming four new board members so we can all lock arms together and build the culture of the company so there can be better morale, less employee turnover, stronger breadth of management as we tackle the, you know, diverse nature of cvs. >> you believe the previous board or its incarnation was not holding management as accountable as it should have? i don't want to put words in your mouth, but you will hold this management team more accountable? >> i think the board is ready to hold itself more accountable. they've added four new board members. so i think there is universal agreement that at the top of the company, board and leadership, that we can all do

better. i'm grateful that large shareholders, not just glenview, we only own 1%, large shareholders made their feelings known that they thought board refreshment should take place. >> wells fargo upgrades this morning, not timing having to do with this announcement, but the consequences at aetna have likely peaked. do you agree with that? >> yes. i don't think you expect you change four board members and next quarter, everything is going to be magically perfect. it is a process and it is a journey. the businesses they bought over the last couple years, oak street health and signify, they're valuable businesses, they are valuable to the client, and we are open minded to the ability that those businesses bring to provide unique value to ma members. >> you think they were paid for those businesses, don't you? >> and those businesses in aggregate are losing money. that's publicly disclosed. there will be progress as those

businesses mature and normal and hopefully grow into their valuation. i think from a capital allocation perspective, which is one of the board's jobs, i think the priority and everybody is clear on it is getting the balance sheet back in order. we have an investment-grade balance sheet today. we want to make sure we maintain that. cvs is strategically complete. it does not need to buy other things in order to serve its customers. at that point in time, it can -- >> let me stop you for a moment. listen, you have a lot of industry expertise, but capital allocation is where as a board member i certainly would come to you, perhaps, given your expertise. what would you like to see from a capital allocation perspective in terms of more specifics? >> in the near term, the leverage should get down below four times, but the company has said we're in agreement we would like to see it get down

to 3.75 times. taking a step back, in 2008 people didn't like cigna and united healthcare because people didn't like the cyclical nature of health insurance. in 2012, people didn't like thermo fisher scientific or hca because people were worried about those cycles. they fall out of favor and we think this company, the market looks at this and says it's trading at 10 times earnings. we look at it and say they're good businesses earning north of $8 a share. they're also losing about $3 a share in the businesses that are temporarily struggling. and putting a 10 multiple on this business, the market is saying that the medicare advantage business and the individual exchange business and oak street and signify and everything else that's contributing to losses is worth negative $30 a share. as value investors, just like those opportunities where it be 10 healthcare at 16 or whether

it be shares in 2008, we once again have this wonderful opportunity to literally get paid to own this business that clearly has positive value. but yes, it's going to take a little bit of patience and a little bit of elbow grease. after we've invested in the business and after we've right sized the balance sheet, but that's not going to be a 2025 issue. >> there have been a lot of thinking, larry, that said maybe a split of the company would be beneficial. typically the lower multiples is a result of retail being part of it. if you separate them, you get a much higher multiple. you're not a believer this company would benefit from a split? >> first of all, let's tip our hat to what cvs has done. today they have a 27% share 17 years later. the share has gone from 21-27. despite the nay sayers not loving the drugstore business

and we understand why, the front of the store has lots more competition than they did decades ago, they are serving their clients well. because of that, they're getting a higher and higher share of prescriptions. over the next five years, we believe the tremendous head winds they've had and the reimbursements they get from pbm's that, that investment is likely to asemtope. that's something that can be addressed three, four, five years from now. i think the market is going to change its perception about the stores if cvs health can prove it can integrate value and use those stores in order to better serve their customers and better serve the ma patients they're trying to serve right now at a tremendous loss. >> two-year losses of 42 plus percent. you think this is heading the other direction in the not too

distant future? >> the company was supposed to earn $8-$9 a share. it's earning in the low fives according to consensus. the easiest thing in the world to do is stop losing money. it's hard to build great companies. it's easy to stop losing money. it can't happen immediately but it can happen over the course of the next couple years. there's universal focus on that and i think new management is very, very clear that is their number one priority. >> in the brief time we have left, as a long-time investor in healthcare broadly speaking, i'm curious to get your take right now as rfk, jr. perhaps may become the secretary of health and human services. how do you approach your sector? how are you thinking about it given the incoming trump administration? >> sure. first of all, number one, we don't know if congress is really going to, if the senate is going to confirm his nomination or not. despite the red wave that has come in, i think it's worth noting that when trump came in the first time, he had about 45

seat majority in the house. and 52-48 majority in the senate. i think he has one more senator this time. the trump administration will have to be a little bit more choosy actually as to where it puts it full weight when it wants to get something through congress. i don't know whether he will be confirmed or not. if he is confirmed, i do believe that ultimately health and science win out. and you know, the trump administration's been very, very sensitive to its own voter base and its own popular base. that tends to skew older. medicare advantage now serves more than half the senior population. people have chosen with the plans that they want to attract that they prefer a private alternative to a government-run alternative in traditional medicare. and we think, and i believe that the market agrees, that on balance that the trump administration will be more receptive in order for

consumers to have their choice, including m&a. >> it's gotta introduce a lot of uncertainty, though, larry. >> it's introduced some volatility, uncertainty across the chain. at the end of the day, the silver wave, which my hair is capturing, the silver wave ensures that as a country we're getting older. we require more healthcare. the healthcare crisis in the united states is one of demographics, not one of capability. that's what makes these businesses wonderful businesses particularly when they are run for cash and they are run effectively. >> larry, thank you for coming in. appreciate it. >> thank you very much. nice to be here. >> larry robbins, glenview capital. we're back right after this.

this week marks one year since open a.i.'s major leadership turmoil, which you may remember bringing back sam altman as ceo less than a week after he was fired by the board. we're looking at the transformative 12 months that have followed for one of the most important a.i. players. hey, kate. >> it has been a dramatic year for open a.i. since that board coup. there have been major wins but the tension that week continues

to weigh on open a.i. some of the checks on how this powerful technology is deployed and ceo sam altman is in the process of transforming the company of for-profit but that could exacerbate safety concerns. some have left the company in the past year but what is now a $157 billion start up did start originally as a non-profit research lab. a lot of the internal tension has come from its deep-tech roots clashing with the commercial opportunity. for example, its partnership with apple. worried that open a.i. was moving too fast and felt safety was on the back burner at certain points. that was one of the reasons the board justified firing altman last year. they say they are building appropriate guardrails and have an independent oversight committee. they compare this tech to nuclear energy. they say it can be used for good or mass destruction.

i'm told by sources open a.i. is looking to become a public benefit corporation, which would give it a dual mandate. instead of just serving the benefit of humanity, which was its original mission, they will have an obligation to increase shareholder value as well. >> does he have equity yet? what's the story on that? >> that is up in the air. the board will have to vote on that. that will be part of the transition to a for-profit. one question is governance. you hear some of the big-tech companies out here that have some of the powerful voting shares and you think of facebook structure. i think that's one question. not only what's his financial stake but what's his control over the company? sources that are still there and have rallied around sam altman say the company, it's built in the vision of sam altman. he has almost absolute control. you would expect that to be reflected in that for-profit structure. >> larry summers also playing an important role on that board

from what i hear. kate, thank you. we are tending toward the highs of the session right now with the s&p up almost one-half of a percent. the nasdaq up almost 8%. tesla shares continuing their surge up some 8%. we've got a lot more market coverage for you straight ahead. 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. it is, right. he gets it. yeah. growing your business is easy once you know the moves. with godaddy websites plus marketing, you can quickly create a website, and ai will customize it for you. get your business out there and get more customers in here.

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welcome to "money movers." i'm carl quintanilla with sara eisen at the new york stock exchange. is there a reason to be concerned about a post election fade? are investors starting to consider the bull case for stocks as more of president trump's cases are put forward. we're live in washington with the latest of president-elect trump's picks with treasury secretary and a potential new front-runner. why one wall street firm says robinhood might be a major beneficiary after already surging 325% in the last 12 months. in the market we're seeing some momentum as we go through the morning. the s&p now at the highs of the day, up